/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060929.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 29, 2006, Vol. 7, No. 194 Headlines A U S T R I A ANTON KRIVANEK: Claims Registration Period Ends October 9 BAWAG PSK: Austrian Prosecutors Include KMPG Auditor in Probe CLEVER BAU: Creditors' Meeting Slated for October 4 EMGO: Creditors' Meeting Slated for October 4 NELLY'S LIVE: Claims Registration Ends October 3 R + R: Creditors' Meeting Slated for October 12 REINBERGER: Group 3 Creditors to Recover 59% of Claims THELEN & THELEN: Creditors to Recover 2.7% of Claims VIKTORIN: Claims Registration Period Ends October 9 WOHNBAU SUED: Creditors to Recover 2.6% of Claims B E L G I U M POPE & TALBOT: Moody's Assigns Loss-Given-Default Rating D E N M A R K AGCO CORP: Moody's Assigns Loss-Given-Default Ratings RUNESTONE GAME: To Shut Down "Seed" Game After Bankruptcy Filing F R A N C E AUTOCAM CORPORATION: Moody's Assigns Loss-Given-Default Ratings BRAKE BROS: Fitch Keeps Issuer Default ratings at B+ CASCADES INC: Moody's Assigns Loss-Given-Default Ratings CASINO GUICHARD: Fitch Upgrades EUR600 Mln Securities to BB+ PH GLATFELTER: Moody's Assigns Loss-Given-Default Ratings PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer G E R M A N Y AGRAR-TECHNIK: Claims Registration Ends October 9 AMERICAN AXLE: Moody's Assigns Loss-Given-Default Ratings ASJ KRAFTFAHRZEUGE: Claims Registration Ends October 9 BENQ CORP: Mulls Insolvency Filing for German Mobile Subsidiary BORGWARNER INC: Moodys Affirms (P)Ba1 Preffered Shelf Rating BRENNTAG HOLDING: Buyout Prompts S&P to Cut Credit Rating to B EWACO HANDELS: Claims Registration Ends October 9 GEWERBEPARK ODERTAL: Claims Registration Ends October 11 GUSTIBUS IMPORT: Creditors' Meeting Slated for October 12 MARTIN SCHULZE: Claims Registration Ends October 10 OMDA DATENVERARBEITUNG: Claims Registration Ends October 10 PROCREDIT HOLDING: Fitch Affirms Individual C/D Rating SPS VERTRIEBS: Claims Registration Ends October 9 START VERWALTUNGS: Claims Registration Ends October 9 WB INDUSTRIEMONTAGE: Claims Registration Ends October 10 WITT GMBH: Claims Registration Ends October 10 I R E L A N D DEKANIA EUROPE: Fitch Gives Final BB Rating to EUR12-Mln Notes SCOTTISH RE: Ends & Cuts Syndicated Credit Facilities I T A L Y AVIO HOLDING: S&P Withdraws B Corporate Credit Ratings K A Z A K H S T A N DIAS T: Karaganda Court Opens Bankruptcy Proceedings JELDORVODOTEPLOSNABJENIYE: Creditors' Claims Due Oct. 20 KUAT-COMPANY: South Kazakhstan Court Starts Bankruptcy Procedure PRIOZERNOYE: Proof of Claim Deadline Slated for Oct. 20 SHYBERLIK: Creditors Must File Claims by Oct. 20 SIRIUS-2004: Claims Registration Ends Oct. 20 STROYPROJECT: Creditors' Claims Due Oct. 20 SUNFLOWER: Proof of Claim Deadline Slated for Oct. 20 TECHNO COMPANY: Claims Registration Ends Oct. 20 UMIT-SU: South Kazakhstan Court Begins Bankruptcy Proceedings K Y R G Y Z S T A N ADANA-KONTI: Proof of Claim Deadline Slated for Nov. 8 TITAN SECURITY: Creditors Must File Claims by Nov. 8 L I T H U A N I A BANKAS SNORAS: Moody's Assigns D- Financial Strength Rating N E T H E R L A N D S SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer VNU GROUP: New Owners Mull Auction of European Portfolio N O R W A Y AKER KVAERNER: Fitch Lifts Default Rating to BBB- from BB+ P O L A N D AMERICAN AXLE: Moody's Assigns Loss-Given-Default Ratings AUTOCAM CORPORATION: Moody's Assigns Loss-Given-Default Ratings VERIFONE INC: S&P Affirms BB- Rating on US$540-Mln Bank Loan R U S S I A AGRO-TEKH-PROM: Court Names A. Lyasman as Insolvency Manager ASBESTOVSKIY FACTORY: L. Korovnikova to Manage Assets BALT-COAL: Court Names P. Tarasov as Insolvency Manager BARNAULSKIY: Court Names V. Yakovlev as Insolvency Manager BIKINSKIY BAKERY: Court Starts Bankruptcy Supervision Procedure BUILDER-29: Krasnodar Court Starts Bankruptcy Supervision CHEBAKOVO: Yaroslavl Court Starts Bankruptcy Supervision DAL-TRADING-SERVICE: Court Starts Bankruptcy Supervision FOREST GLADE: Bankruptcy Hearing Slated for Nov. 14 GEFEST: Tula Court Starts Bankruptcy Supervision INTER-CONSTRUCTION: Court Names A. Kubasov as Insolvency Manager INVEST-MANAGER: Court Names G. Chmutina as Insolvency Manager ISKRA: Court Names A. Ivanov as Insolvency Manager KIRISHSKIY FACTORY: Court Names P. Tarasov as Insolvency Manager KURGANSKOYE PASSENGER 2: O. Pugin to Manage Insolvency Assets LIMESTONE: Orel Court Names P. Klimenko as Insolvency Manager MOSKALENSK-AGRO-PROM-TRANS: A. Lyasman to Manage Assets NORD-STROY-2: Court Names P. Tarasov as Insolvency Manager NORTH-WEST TELECOM: Improved Performance Cues S&P to Lift Rating OIL-GAS-SVYAZ-STROY: N. Lapchuk to Manage Assets OZERSKOYE: Court Names A. Morozov as Insolvency Manager PIONEER: Court Names V. Kiryaev as Insolvency Manager REINFORCED-CONCRETE GOODS: M. Bogatova to Manage Assets SIBERIAN VENTILATION: Court Starts Bankruptcy Supervision SIG EURO-STROY: Moscow Court Starts Bankruptcy Supervision SOROCHINSKIY DIARY: Court Starts Bankruptcy Supervision TAGANKA CAR: Moody's Rates US54.8-Mln Class C Notes at (P)Ba2 TENLIN: Bankruptcy Hearing Slated for Feb. 6 UNIVERSAL HARDWARE: S. Sorokin to Manage Insolvency Assets URALSVYAZINFORM OJSC: Standard & Poor's Raises Rating to BB- VOLGATELECOM: Improved Business Spurs S&P to Raise Rating to BB- YUKOS OIL: Surgutneftegaz Eyes Petrochemical Unit ZYRYANSKIY BUTTER-FACTORY: V. Chayka to Manage Assets * S&P Lifts Krasnodar Krai's Rating to BB- on Economic Growth S P A I N CHESAPEAKE CORP: Moody's Assigns Loss-Given-Default Ratings GAT FTGENCAT: Moody's Junks EUR9.5-Million Series E Notes PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts SOL MELIA: Fitch Assigns BB Rating on EUR100 Million Shares S W E D E N GRAPHIC PACKAGING: Moody's Assigns Loss-Given-Default Rating S W I T Z E R L A N D NOBLE GROUP: Strong Finances Spur Moody's to Affirm Ba1 Rating T U R K E Y EDISON MISSION: Fitch Lifts Issuer Default Rating to BB- U K R A I N E AGES: Court Names Volodimir Ilkovskij as Insolvency Manager ARCHITECTURAL ENGINEERING: Court Names Tax Agency as Liquidator ESST LTD: Zaporizhya Court Names S. Persuk as Insolvency Manager KOM-TREK: Kyiv Court Names District Tax Agency as Liquidator KONTUR PLUS: Court Names Lubomir Cherevatij as Liquidator NAFTOGAZ UKRAINY: Prime Minister Yanukovych Foresees Bankruptcy NIOL: Kyiv Region Court Names V. Zaharchuk as Insolvency Manager PREMIER-ORBI: Court Names I. Yasnogor as Insolvency Manager REMPROMBUTSERVICE: Court Names District Tax Agency as Liquidator SAMBOR: Kyiv Region Court Starts Bankruptcy Supervision SELSA: Kyiv Court Names District Tax Agency as Liquidator SUMIFARM: Sumi Court Starts Bankruptcy Supervision Procedure TEHNOGEM: Court Names Yevgenij Grib as Insolvency Manager ZUGRESENERGOBUD: Court Names S. Atamanenko as Liquidator U N I T E D K I N G D O M ADVANCED FLUID: Faces GBP12.16-Mln Fine Over Copper Cartel AGCO CORP: Moody's Assigns Loss-Given-Default Ratings ALBION SPRING: Bank of Scotland Brings In PwC as Receivers ALLIED HOME: Appoints Joint Liquidators from CBA ALLSCREWS LIMITED: Claims Filing Period Ends Oct. 11 AMERICAN AXLE: Moody's Assigns Loss-Given-Default Ratings ANDREWS BUILDERS: Hires Liquidator from Maidment Judd ARMSTRONG SECURITY: Joint Liquidators Take Over Operations ARVINMERITOR INC: Moody's Assigns Loss-Given-Default Rating ASAP FREIGHT: I. P. Sykes Leads Liquidation Procedure BALMORAL UPHOLSTERY: Names Gagen Dulari Sharma Liquidator BRAKE BROS: Fitch Keeps Issuer Default Ratings at B+ BUDDIES MAIDSTONE: Taps Adelle Firestone to Liquidate Assets BUSINESS BASE: Hires F A Simms as Joint Administrators CADMAN CONTRACTS: Appoints BDO Stoy as Joint Administrators CARDIFF TILE: Nominates Gary Stones to Liquidate Assets CHAMBERS OF ROCHESTER: Names Simon Paterson Liquidator COLOUR POWDER: Appoints Joint Administrators from DTE COMP U: Liquidator Sets Oct. 4 Claims Bar Date CPU CITY: Appoints Liquidator from Bottomley & Co. DAVE SHELDON: Taps Geoffrey Martin as Administrators EMF CHEMICALS: Claims Registration Ends Oct. 30 EZ TECH: Appoints Terry Christopher Evans as Liquidator FORD MOTOR: Executive Says Jaguar Brand Not For Sale Now FOSTER ELECTRICAL: Names Joint Liquidators to Wind Up Business GARAGE DOOR: Calls In Joint Liquidators from O' Hara & Co. GUILDHOUSE INSURANCE: Names Colin Andrew Presscott Liquidator INNOVATION RECRUITMENT: Brings In Joint Liquidators from Mazars JOHN DALTON: Creditors Confirm Liquidator's Appointment JRF ROOFING: Taps John Paul Bell to Liquidate Assets LAVIS MEDICAL: Claims Filing Period Ends Dec. 31 MAY MAC: Appoints Joint Liquidators from Recovery hjs MERIDEN HOLDINGS: Names Andrew Fender as Administrator MWM ACCIDENT: Hires Joint Liquidators from Deloitte & Touche OBS TIMBER: Brings In Baker Tilly to Administer Assets OMBRIGHT LIMITED: Liquidator Sets Oct. 20 Claims Bar Date PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts R & P SHOPFITTINGS: Names Joint Liquidators from CBA RANSOME MARLOW: Creditors Confirm Liquidators' Appointment SCOTTISH RE: Ends & Cuts Syndicated Credit Facilities SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer SEVENOAKS PLAYHOUSE: Names Liquidators to Wind Up Business SHELL SCHEME: Taps Liquidator from David Horner & Co. SNS LINGERIE: Creditors Confirm Liquidator's Appointment SOFTBANK CORP: Strong Brand Cues Moody's to Assign Ba2 Rating SOFTBANK CORP: S&P Assigns BB- Rating on EUR500-Mln Notes STARPOINT CARD: Names Keith Aleric Stevens Liquidator STORM DISPLAY: Creditors' Meeting Slated for October 2 TAURUS CUSTOM: Claims Filing Period Ends Oct. 24 TEMPERAL ENGINEERING: Claims Registration Ends Oct. 5 TRANSURE U.K.: Hires Joint Liquidators from Lines Henry TWINMILLS LIMITED: Calls in Joint Liquidators from Vellacott DFK W.R. RICHARDS: Claims Filing Period Ends Oct. 20 WILLIAMSON MOTORS: Barclays Bank Taps Grant Thornton Receivers WINDOWCRAFT LIMITED: Appoints J. M. Titley to Liquidate Assets * BOOK REVIEW: Crafting Solutions for Troubled Businesses ********* ============= A U S T R I A ============= ANTON KRIVANEK: Claims Registration Period Ends October 9 --------------------------------------------------------- Creditors owed money by LLC Anton Krivanek (FN 229115) have until Oct. 9 to file written proofs of claims to court-appointed property manager Georg Freimueller at: Dr. Georg Freimueller c/o Dr. Erwin Senoner Alser Road 21 1080 Vienna, Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Oct. 23 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 28 (Bankr. Case No. 3 S 120/06a). Erwin Senoner represents Dr. Freimueller in the bankruptcy proceedings. BAWAG PSK: Austrian Prosecutors Include KMPG Auditor in Probe ------------------------------------------------------------- Austrian prosecutors are investigating an employee of KPMG Austria GmbH over the US$2-billion scandal at Bawag P.S.K. Group, says the Wall Street Journal citing sources privy to the matter. According to the report, the probe was spurred by witnesses' revelations that Robert Reiter, a former partner and head of KPMG Alpen-Treuhand GmbH, a unit of KPMG Austria, advised Bawag on booking hundreds of millions of dollars in losses in a way closed to public scrutiny. Mr. Reiter served as lead auditor for Bawag's 2000 accounts, which KMPG certified as "properly booked and evaluated, particularly in the field of derivatives." The prosecutors found out from recent probes that in 2000, Mr. Reiter attended an emergency management board meeting of Bawag, which was called after local businessman Wolfgang Flottl, son of the bank's ex-chief, revealed he lost EUR433 million at current exchange rates, from bad bets on the pricing of the yen, WSJ reports. After the meeting, a KPMG representative agreed not to mention the loss in the auditor's statement in the Bawag's annual report if Osterreichischer Gewerkschaftsbund (OeGB), the bank's majority shareholder, guaranteed the loss, WSJ cites an Austrian National Bank audit. A spokeswoman for KPMG Austria stressed that the auditing firm is not included in the probe, because there is no Austrian law that allows criminal investigation of companies. She added KMPG has full confidence in Mr. Reiter's integrity. "KPMG is convinced it was proper to give our unrestricted confirmation of Bawag's annual reports," the spokeswoman was quoted by WSJ as saying. As previously reported, BAWAG disclosed that, under the helm of former chief executive Helmut Elsner, it lost EUR1 billion in five years when it invested into high-risk businesses in Antigua. The bank, however, assured that it had absorbed the losses since them, and any remaining deficit is "very small and could not harm the bank". BAWAG chief executive Guenter Weninger admitted knowing the losses, but said he was only informed in late 2000. He added the bank did not disclose the losses to avoid insolvency and to keep clients, jobs and assets. The admission stirred Austrian authorities to probe into the matter. Prosecutors have recently focused on how Bawag reported assets and losses. Authorities particularly centered on KPMG audits of the bank's accounts between 1994 and 2005 that failed to reveal misreporting of bank assets and losses. About BAWAG Headquartered in Vienna, Austria, BAWAG P.S.K. (Bank fur Arbeit und Wirtschaft AG) is an Austrian universal bank founded in 1922 by former Austrian Chancellor Karl Renner. As of 2004, the bank's majority shareholder was the OGB (Osterreichischer Gewerkschaftsbund), the Austrian Trade Union Federation. The bank had total consolidated assets of EUR56 billion as of Dec. 31, 2004. * * * As reported in the TCR-Europe on May 11, Moody's downgraded BAWAG P.S.K's -- financial strength rating (BFSR) to D- from C-; -- Tier 1 debt rating to Baa3 from Baa2. Both ratings remain under review for possible downgrade. At the same time, Moody's has also downgraded to Prime-2 with stable outlook from Prime-1 the bank's short-term debt and deposit rating. The A3 long-term debt and deposit ratings and the Baa1 subordinated debt rating remain on review for possible downgrade. These ratings were downgraded as part the rating action: -- BAWAG P.S.K.: bank financial strength rating from C- to D-; -- BAWAG P.S.K.: short-term rating from P-1 to P-2; -- BAWAG P.S.K. CAPITAL Finance (Jersey) Ltd.: debt and deposit rating to Baa3 from Baa2; -- BAWAG P.S.K. Capital Finance (Jersey) II Ltd.: debt and deposit rating to Baa3 from Baa2; and -- BAWAG P.S.K. Capital Finance (Jersey) III Ltd.: debt and deposit rating to Baa3 from Baa2. These ratings are under review for possible downgrade: -- BAWAG P.S.K.: bank financial strength rating of D-; -- BAWAG P.S.K.: long-term debt and deposit. CLEVER BAU: Creditors' Meeting Slated for October 4 --------------------------------------------------- Creditors owed money by LLC Clever Bau-, Planungs- und Handel (FN 233166t) are encouraged to attend the creditors' meeting at 10:15 a.m. on Oct. 4 to consider the adoption of the rule by revision. The creditors' meeting will be held at: Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 4, 2005 (Bankr. Case No. 2 S 141/05f). Stefan Jahns serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Stefan Jahns Esslinggasse 9 1010 Vienna, Austria Tel: 536 50 E-mail: officewien@aaa-law.at EMGO: Creditors' Meeting Slated for October 4 --------------------------------------------- Creditors owed money by LLC EMGO (FN 214568t) are encouraged to attend the creditors' meeting at 10:30 a.m. on Oct. 4 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 11, 2005 (Bankr. Case No. 2 S 147/05p). Guenther Hoedl serves as the court-appointed property manager of the bankrupt estate. Andrea Simma represents Dr. Hoedl in the bankruptcy proceedings. The property manager can be reached at: Dr. Guenther Hoedl c/o Dr. Andrea Simma Schulerstrasse 18 1010 Vienna, Austria Tel: 513 16 55 E-mail: Hoedl@anwaltsteam.at NELLY'S LIVE: Claims Registration Ends October 3 ------------------------------------------------ Creditors owed money by LLC Nelly's Live (FN 237976s) have until Oct. 3 to file written proofs of claims to court-appointed property manager Herbert Hoffmann at: Mag. Herbert Hoffmann Viennese Road 18 3430 Tulln, Austria Tel: 02272/81929 Fax: 02272/81929-20 E-mail: mag.hoffmann@i-one.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:20 a.m. 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 St. Poelten Room 216 2nd Floor (Old Building) St. Poelten, Austria Headquartered in Langenrohr, Austria, the Debtor declared bankruptcy on Aug. 28 (Bankr. Case No. 14 S 134/06f). R + R: Creditors' Meeting Slated for October 12 ----------------------------------------------- Creditors owed money by LLC R + R (FN 47146h) are encouraged to attend the creditors' meeting at 3:00 p.m. Oct. 12 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Graz Hall L (Room 230) 2nd Floor Graz, Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Aug. 11 (Bankr. Case No. 25 S 69/06v). Elisabeth Simma serves as the court-appointed property manager of the bankrupt estate. Klein, Wuntschek & Partner Rechtsanwaelte represents the Debtor in the bankruptcy proceedings. The property manager can be reached at: Dr. Elisabeth Simma Kaiserfeldgasse 15 2nd Floor 8010 Graz, Austria Tel: 0316/827720 Fax: 0316/82772028 E-mail: office@simma-stoff.at The Debtor's representative can be reached at: Klein, Wuntschek & Partner Rechtsanwaelte Kaiser-Franz-Josef-Kai 70 A-8013 Graz, Austria Tel: 0316/81 38 62 REINBERGER: Group 3 Creditors to Recover 59% of Claims ------------------------------------------------------ The Land Court of Graz approved the final decision on allocation of Peter Handler, the court-appointed property manager of KEG Reinberger (FN 251922z), on Aug. 25. Under the property manager's project by final allocation, only the property creditors of group 3 will recover 59% of their claims while other creditors will not receive any quota. Headquartered in St. Florian, Austria, the Debtor declared bankruptcy on Feb. 7 (Bankr. Case No. 25 S 7/06a). The property manager can be reached at: Mag. Peter Handler Main Place 33 8530 Deutschlandsberg, Austria Tel: 03462/4141 Fax: 03462/414141 E-mail: office@handler.at THELEN & THELEN: Creditors to Recover 2.7% of Claims ---------------------------------------------------- The Land Court of Graz approved the final decision on allocation of Franz Krainer, the court-appointed property manager of LLC Thelen & Thelen Entertainment (FN 212165h), on Aug. 25. Under the property manager's project by final allocation, creditors will recover 2.7% on account of their claim. Headquartered in Graz, Austria, the Debtor declared bankruptcy on May 11, 2005 (Bankr. Case No. 25 S 49/05a). The property manager can be reached at: Dr. Franz Krainer Herrengasse 19 2nd Floor 8010 Graz, Austria Tel: 0316/822082 Fax: 0316/822082-75 E-mail: office@dr-krainer.at VIKTORIN: Claims Registration Period Ends October 9 --------------------------------------------------- Creditors owed money by LLC Viktorin (FN 225300z) have until Oct. 9 to file written proofs of claims to court-appointed property manager Erwin Senoner at: Dr. Erwin Senoner c/o Dr. Georg Freimueller Alser Road 21 1080 Vienna, Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Oct. 23 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 9 (Bankr. Case No. 45 S 53/06g). Georg Freimueller represents Dr. Senoner in the bankruptcy proceedings. WOHNBAU SUED: Creditors to Recover 2.6% of Claims ------------------------------------------------- The Land Court of Graz approved the final decision on allocation of Peter Handler, the court-appointed property manager of LLC Wohnbau Sued-West (FN 188595 x), on Aug. 25. Under the property manager's project by final allocation, creditors will recover 2.6% of their claim. Headquartered in Lieboch, Austria, the Debtor declared bankruptcy on March 14, 2003 (Bankr. Case No. 25 S 147/03k). Mag. Georg Dieter represents the Debtor in the bankruptcy proceedings. The property manager can be reached at: Mag. Peter Handler Holleneggerstrasse 6a 8530 Deutschlandsberg, Austria Tel: 03462/4141 Fax: 03462/414141 E-mail: office@handler.at ============= B E L G I U M ============= POPE & TALBOT: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Forest Products sector, the rating agency confirmed its B3 Corporate Family Rating for Pope & Talbot Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these two bond issues: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------ ------ ------ ------- US$75 million 8.375% Debentures due 2013 Caa2 Caa2 LGD5 86% US$60 million 8.375% Debentures due 2013 Caa2 Caa2 LGD5 86% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Portland, Oregon, Pope & Talbot Inc. -- http://www.poptal.com/-- produces lumber and manufactures bleached kraft pulp for newsprint, writing paper, and tissue manufacturers. The company has over 2,500 employees with significant operations in British Columbia, and South Dakota. The company has a sales office in Brussels, Belgium. ============= D E N M A R K ============= AGCO CORP: 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 for the Automotive and Equipment sector this week, the rating agency confirmed its Ba2 Corporate Family Rating for AGCO Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 1.750% Conv. Sr. Sub. Notes due 2033 B1 B1 LGD5 89% 6.875% Sr. Sub. Notes due 2014 B1 B1 LGD5 89% Sr. Unsec. Shelf Ba3 Ba3 LGD5 81% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). AGCO Corp. is a global manufacturer and distributor of agricultural equipment and related replacement parts. The Co. offers a full line of products under multiple brands through one of the largest global distribution networks in the industry, including more than 3,900 independent dealers and distributors in more than 140 countries including Denmark, Finland, Germany, Italy, France, Spain and the United Kingdom. RUNESTONE GAME: To Shut Down "Seed" Game After Bankruptcy Filing ---------------------------------------------------------------- Runestone Game Development has filed for bankruptcy protection, which will bring to a close the multiplayer title called Seed, GameZone reports. "For the past two months, I and a few others have attempted to sell a partnership deal to a long list of publishers and MMO companies, trying to raise the capital we needed to finish the game properly, and re-launch it in a form it, and especially you the community, deserve. While we have received a great deal of interest, we have not been able to close a deal. The harsh reality is that we have now officially run out of money, and out of options, and therefore, we cannot pay salaries, rent or hosting fees," Runestone CEO Lars Kroll Kristensen said. Mr. Kristensen informed the gaming community that Seed will be available for a very limited time. "For us, it means that the dream of Seed and Runestone is over. It has been a wild, weird ride, full of frustration, triumph, joy, stress and fun, but never boredom. We have all learned incredibly much about game development, the gaming business and MMOs," he added. The Seed features a rich, lush cel-shaded graphic style, which was set in a distant feature in a colony tower on a planet far from Earth. About the Company Headquartered in Aarhus, Denmark, Runestone Game Development -- http://www.runestone.dk/-- develops and runs innovative, storybased massively multiplayer online games. =========== F R A N C E =========== AUTOCAM CORPORATION: 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 for the U.S. automotive sector, the rating agency confirmed its Caa1 Corporate Family Rating for Autocam Corporation. Additionally, Moody's revised its probability-of- default ratings and assigned loss-given-default ratings on two loans and a bond issue: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- multi-currency secured revolving credit facility B3 B1 LGD2 13% US dollar secured term loan B3 B1 LGD2 13% 10.875% senior subordinated notes Ca Caa2 LGD5 79% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Kenwood, Michigan, Autocam Corp. -- http://www.autocam.com/-- designs and manufactures precision machined, close tolerance, specialty metal alloy components used in the transportation and medical implement industries. The company had revenues of approximately US$350 million in 2004. The company employs 2,500 workers and has manufacturing facilities in North and South America, Europe and China. In Europe, Autocam maintains operations in France and Poland. BRAKE BROS: Fitch Keeps Issuer Default ratings at B+ ---------------------------------------------------- Fitch Ratings affirmed U.K.-based Brake Bros Acquisition PLC's and Brake Bros Finance PLC's Issuer Default ratings at B+ with Stable Outlook and Short-term ratings at B. This follows the announcement of the proposed issuance of Brake Bros Holding III Limited of GBP275 million pay-in-kind notes to refinance existing shareholder loans. The PIK notes will not be rated. At the same time, Fitch has taken these rating actions: -- Brake Bros Acquisition Plc senior secured facilities: affirmed at BB+/RR1; and -- Brake Bros Finance Plc senior notes due 2011: affirmed at B+/RR4. "According to Fitch's PIK rating methodology, the issuance of PIK notes at a holding company level does not have a detrimental effect on ratings provided that the notes do not benefit from any guarantee from the operating subsidiaries and do not pay cash interest, which is unlikely given the restrictions on permitted payments in the borrowing group lower down the capital structure," Pablo Mazzini, Director in Fitch's Leveraged Finance team disclosed. "In this case, the proposed terms of the PIK notes indicate that they will effectively have only an equity claim on the operating companies, and therefore Fitch has affirmed its ratings for the entities below the PIK borrower," Mr. Mazzini added. As already seen in other recent recycled LBO transactions, the use of PIK notes proceeds to make approximately GBP250 million payments to shareholders represents a return of a substantial part of their initial equity investment. In this instance, Fitch does not consider this a significant additional risk factor, as Brake Bros has exhibited a solid performance in recent quarters, extending the improving trend seen since the LBO in September 2002. In addition, senior debt repayment has been accelerated and is expected to continue, which reflects the commitment from management and the financial sponsors towards de-leveraging, thereby providing comfort for bondholders. Given the thin operating margins of Brake Bros, albeit in line with industry standards, and the historical volatility in free cash flow generation, Fitch is maintaining its Stable Outlook for the company. Nevertheless, Fitch views positively that some of the PIK proceeds would be used to reduce around 50% of the GBP34 million pension deficit, which would result in lower future funding requirements. Brake Bros is the U.K.'s leading foodservice company, whose operations are primarily focused on distributing fresh, frozen and chilled foods to the catering industry. Brake Bros is also present in France, where further scope for improvement is possible as profitability remains below industry average and the company focuses on distribution optimization. Brake Bros reported H106 revenues of GBP796 million and EBITDA of GBP46 million, which compares well against GBP793 million of sales in H105 and EBITDA of GBP31 million before exceptional items, or GBP23.8 million after exceptional costs. Cash-pay net leverage in the last 12-month to June 2006 was estimated at 2.9x reported EBITDA. The issuance of the PIK notes will result in pro-forma LTM June 2006 net leverage of 5.5x, which is in line with the credit ratios at LBO closing. CASCADES INC: 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 for the North American Forest Products sector, the rating agency confirmed its Ba2 Corporate Family Rating for Cascades Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------ ------ ------ ------- US$450 mm Revolving Facility due 2010 Ba1 Baa3 LGD2 15% US$100 mm Term Loan Facility due 2012 Ba1 Baa3 LGD2 15% US$675 mm Sr. Unsecured Notes due 2013 Ba3 Ba3 LGD4 69% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Canada, Cascades Inc. -- http://www.cascades.com/-- produces, transforms and markets packaging products, tissue papers and fine papers, composed mainly of recycled fibres. Cascades employs some 15,600 men and women who work in 140 modern and flexib1e production units located in North America, in Europe and in Asia. In Europe, the company maintains operations in France. CASINO GUICHARD: Fitch Upgrades EUR600 Mln Securities to BB+ ------------------------------------------------------------ Fitch Ratings upgraded Casino Guichard Perrachon's EUR600 million perpetual preferred constant maturity swap securities to BB+ from BB and classified it as a Class C security with 50% equity credit. Simultaneously, Fitch has affirmed Casino's Issuer Default rating at BBB- and its Short-term rating at F3. The IDR Outlook remains Stable. The senior unsecured rating has been affirmed at BBB-. The BB+ rating of the perpetual preferred securities is based on Fitch's established notching and Recovery Rating methodology. The equity credit follows the implementation of Fitch's revised hybrid methodology following a six-week market consultation period. The hybrid security is subordinated and ranks senior only to the shares of Casino, while coupon payments can be deferred under certain circumstances. The security meets Fitch's two 'guiding principles' under its revised methodology and qualifies for equity credit. The hybrid's optional deferrals are non-cumulative but are constrained by a look-back feature of 12 months relating to dividend payments, share repurchases or similar transactions. Hence the security has been classified as a Class C security, with 50% equity credit. PH GLATFELTER: 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 for the North American Forest Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for PH Glatfelter Company, and its Ba1 rating on the company's US200 million issue of 7.125% Notes due 2016. Additionally, Moody's assigned an LGD4 rating to those bonds, suggesting noteholders will experience a 53% loss in the event of a default. Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in York, Pennsylvania, PH Glatfelter Company -- http://www.glatfelter.com/-- is a diversified global manufacturer of specialty papers and engineered products. The company's subsidiary Schoeller & Hoesch Gmbh & Co. operates paper facilities in Gernsbach, Germany, and Scaer, France. PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts -------------------------------------------------------- PSA Peugeot Citroen has implemented an action plan to increase its efficiency. The plan comprises a series of measures to be applied immediately with the goal of controlling costs, R&D efficiency, redefining product plan priorities and identifying new markets. The measures have been taken following a detailed assessment of the Group's situation. Several positive developments have been noted, including the growth in business outside Europe, the increase in cooperation agreements, the performance of the manufacturing base, the sharp improvement in vehicle quality and the successful launch of the Peugeot 207. However, the Group's declining market share in Europe-due to the high average age of its model lineups, the slow start-up for such innovative models as the Peugeot 1007, and the increase in competition- is a genuine source of concern. Against this mixed backdrop, Jean-Martin Folz, Chairman of PSA Peugeot Citroen, has unveiled a series of measures covering these main points: -- Taking Immediate Steps to Control Overheads intended to generate savings of EUR125 million in second- half 2006, these initiatives include a hiring freeze and measures to contain payroll costs and other overheads -- Adjusting the Production Cost Base PSA Peugeot Citroen is continuing to adjust its manufacturing teams in France and Spain by reducing the number of temporary employees and fixed-term contracts and by not replacing departing employees. In addition, the plant in Ryton (U.K.) is gradually being closed. As a result, the workforce in the Group's European plants will have been reduced by 10,000 in one year. The decision not to build a second production unit at the Trnava plant will lead to a EUR200 million reduction in the previously announced EUR350-million capital spending program. Lastly, the development of synergies between neighboring plants producing vehicles on the same platform is already underway between Mulhouse and Sochaux and will be extended to Poissy and Aulnay. The goal is to boost capacity utilization in the European plants (as measured by the Harbour index) back above 100% in 2007 and to around 110% in three years. -- Scaling Back the Capital Expenditure Plan PSA Peugeot Citroen's annual capital expenditure budget of roughly EUR3 billion will be reduced considerably to around EUR2.5 billion for the coming period, without however impacting the product plan. -- Enhancing R&D Efficiency A plan to make the automobile development process more efficient has been launched, with the goal of reducing R&D costs by 15% for vehicles just entering the development process. Because the total R&D budget will stay the same over the next three years, in euros, PSA Peugeot Citroen will be able to develop more new models more quickly. -- Redefining Product Plan Priorities The Group will renew core-range models in Europe more frequently to keep the average age low and extend its vehicle lineup to new market segments. In addition to renewing existing product ranges, by 2009 PSA Peugeot Citroen will introduce six new body styles in segments in which it currently has no models. Outside Europe, an assertive product strategy based on a wide range of models tailored to local customer expectations has been launched. Between 2006 and 2009, eleven rollouts are planned for China and six for the Mercosur countries. -- Pursuing New Opportunities Outside Europe With the signature of a memorandum of understanding to study a possible cooperation with Proton in Malaysia and the search for local production capacity in Russia, the Group is seeking to establish a presence in new growth markets while limiting its investments. Headquartered in Paris, France, PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/-- manufactures passenger cars and light commercial vehicles. The Company produces vehicles under the Peugeot and Citroen brands. In addition to car manufacturing, PSA Peugeot Citroen S.A. runs several divisions, including Banque PSA Finance, which federates the Company's finance companies; Faurecia, which manufactures automotive equipment, including car seats, exhaust systems and other components; Gefco, which furnishes transportation and logistics services; Peugeot Motocycles, which manufactures scooters and motorcycles; Peugeot Citroen Moteurs (PCM), which sells engines and gearboxes to customers outside the Company, and Process Conception Ingenierie (PCI), which designs and builds industrial equipment for the Company and other global carmakers. In 2005, PSA Peugeot Citroen S.A. sold 3.39 million vehicles in 150 countries worldwide. SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer ------------------------------------------------------------ Seagate Technology disclosed the pricing of its offering of US$300 million of Floating Rate Senior Notes due 2009, US$600 million of 6.375% Senior Notes due 2011 and US$600 million of 6.8% Senior Notes due 2016. The notes are expected to be issued by Seagate Technology HDD Holdings, a direct wholly-owned subsidiary of the Company, and fully and unconditionally guaranteed by the Company. The 2009 Notes will bear interest at a floating rate equal to three-month LIBOR plus 0.84% per year, the 2011 Notes will bear interest at the rate of 6.375% per year, and the 2016 Notes will bear interest at the rate of 6.800% per year. Interest will be payable quarterly on Jan. 1, April 1, July 1 and Oct. 1 for the 2009 Notes and semi-annually on April 1 and Oct. 1 for the 2011 Notes and 2016 Notes. The Company may redeem the 2011 Notes and the 2016 Notes at any time prior to their maturity for a specified make-whole premium redemption price. The 2009 Notes will not be redeemable prior to their maturity date. The net proceeds from the offering is intended to be used to redeem the US$400 million principal amount of the Company's 8% Senior Notes due 2009, to fund a portion of its US$2.5 billion stock repurchase program and for general corporate purposes. In connection with the offering, the Company and Seagate Technology HDD Holdings entered into an Underwriting Agreement with the underwriters of the offering. As reported in the Troubled Company Reporter on Sept. 15, 2006 Morgan Stanley, JPMorgan and Goldman, Sachs & Co. are acting as joint book-running managers of the offering. Headquartered in Scotts Valley, California, Seagate Technology (NYSE: STX) -- http://www.seagate.com/-- designs, manufactures and markets hard disc drives, providing products for a wide- range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award- winning products, customer support and reliability to meet the world's growing demand for information storage. In Europe, the company maintains operations in France, Germany, the Netherlands and the United Kingdom. * * * As reported in the Troubled Company Reporter on Sept. 13, 2006, Moody's Investors Service affirmed the Ba1 Corporate Family Rating of Seagate Technology HDD Holdings. At the same time, Moody's assigned new ratings to a proposed new debt issuance of US$1.25 billion to finance Seagate's recently announced US$2.5 billion stock buyback program, as well as refinance Seagate's existing US$400 million 2009 notes. Ratings assigned include a Ba1 rating on Floating rate notes due 2009, Ba1 rating on Senior notes due 2011 and 2016. ============= G E R M A N Y ============= AGRAR-TECHNIK: Claims Registration Ends October 9 ------------------------------------------------- Creditors of Agrar-Technik Klindworth GmbH have until Oct. 9 to register their claims with court-appointed provisional administrator Yvo Dengs. Creditors and other interested parties are encouraged to attend the meeting at 11:30 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 Tostedt Area CE.02 Linden 23 21255 Tostedt, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Tostedt opened bankruptcy proceedings against Agrar-Technik Klindworth GmbH on Aug. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Agrar-Technik Klindworth GmbH Attn: Wilfried Klindworth, Manager Nuettel 1 27419 Vierden, Germany The administrator can be contacted at: Yvo Dengs Sandtorkai 62 20457 Hamburg, Germany Tel: 040/30696940 Fax: 040/30696950 AMERICAN AXLE: 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 for the U.S. automotive sector, the rating agency confirmed its Ba3 Corporate Family Rating for American Axle & Manufacturing, Inc., and its American Axle & Manufacturing Holdings Inc. subsidiary. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: American Axle & Manufacturing, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- unsecured term loan Ba3 Ba3 LGD4 57% senior unsecured notes Ba3 Ba3 LGD4 57% Issuer: American Axle & Manufacturing Holdings, Inc. (Subsidiary) Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- senior convertible notes Ba3 Ba3 LGD4 57% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About American Axle American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Poland, Scotland and South Korea. ASJ KRAFTFAHRZEUGE: Claims Registration Ends October 9 ------------------------------------------------------ Creditors of ASJ Kraftfahrzeuge GmbH Doberschuetz have until Oct. 9 to register their claims with court-appointed provisional administrator Heiko Kratz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 ASJ Kraftfahrzeuge GmbH Doberschuetz on Aug. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ASJ Kraftfahrzeuge GmbH Doberschuetz Attn: Horst Jahnichen, Manager Breite Str. 16 04838 Doberschuetz, Germany The administrator can be contacted at: Heiko Kratz Fregestrasse 29 04105 Leipzig, Germany BENQ CORP: Mulls Insolvency Filing for German Mobile Subsidiary --------------------------------------------------------------- BenQ Corp. considers filing an insolvency petition for BenQ Mobile GmbH & Co OHG, its German mobile phone unit, less than a year after taking over an unprofitable Siemens AG division, Theresa Tang writes for Bloomberg News. The company's board of directors also decided to discontinue capital injection into BenQ Mobile in order to stem unsustainable losses in the latter's operations. BenQ Mobile's operations in Germany, including Munich, Bocholt and Kamp-Lintfort may be affected. Other subsidiaries in Brazil and other locations are reviewing their financial position. BenQ will continue its branded mobile business in selected markets leveraging its existing R&D and manufacturing operations in Asia. "Since October 2005, we have committed and invested an inordinate amount of capital and resources into our German mobile phone subsidiary. We have worked alongside our German colleagues from the beginning and were able to achieve quite a number of milestones," expressed K.Y. Lee, BenQ Corporation Chairman. "Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," continued Mr. Lee. BenQ emphasized that adjustments to its mobile operations do not change the company's unwavering commitment to its branded business and focus on providing integrated manufacturing services. Ms. Tang reports that the Taipei-based company is cutting jobs and focusing on higher margin models that can compete with Nokia Oyj and Motorola Inc. The delay in new models resulted in slower-than-expected sales and prompted BenQ to push back its target of turning the handset business profitable to the third quarter of next year at the earliest, Ms. Tang relates. For the first half of 2006, the company's core business recorded sales of NT$112.7 billion, and a net loss of NT$7.5 billion. On Aug. 24, BenQ's board approved a plan to spin-off its Integrated Manufacturing Services business, comprising the company's manufacturing operations. Additionally, it approved a US$400 million investment in its wholly owned subsidiary, BenQ Mobile Holding B.V., and further monetization of Darfon shares ahead of Darfon's public listing. Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BORGWARNER INC: Moodys Affirms (P)Ba1 Preffered Shelf Rating ------------------------------------------------------------ Moody's Investors Service affirmed the debt ratings of BorgWarner Inc., senior unsecured at Baa2, but changed the rating outlook to stable from positive. The actions follow BWA's announcement in which it reduced guidance for 2006 earnings and cash flow from a combination of significantly lowered North American customer production schedules, restructuring programs within BWA, and the impact of higher metal costs on its margins. While BWA benefits from significant customer and geographic diversification and well positioned product offerings, the magnitude of the downdraft from structural changes in North America limits short-term expectations and will constrain the timing and pace at which further improvements in the company's financial standing can be expected. Many of these challenges will continue into 2007. Despite the weaker environment, BWA's financial metrics are expected to remain supportive of the Baa2 rating, and the outlook is stable. Ratings affirmed: BorgWarner Inc. -- Senior Unsecured, Baa2; -- Subordinated shelf, (P)Baa3; and -- Preferred shelf, (P)Ba1. BorgWarner Capital Trusts I, II, and III -- Shelf ratings for trust preferred, (P)Baa3. The last rating action was on Dec. 8, 2004 at which time BWA's long-term ratings were confirmed and a positive outlook was established. BWA reduced its guidance for full year 2006 earnings by approximately US$23-US$27 million (after-tax) prior to the impact of a restructuring charge of roughly US$9 million (after tax) to reduce its North American workforce by 13%. While this restructuring represents an appropriate action that will be supportive of future performance, margins over the balance of the year will be adversely affected by declines in production volumes announced by General Motors, Ford Motor Company and DaimlerChrysler, as well as the rising cost of nickel used primarily in its turbocharger products. Collectively, the global operations of the Big 3 OEMs accounted for 37% of 2005 revenues (roughly 22% from their North American base), but a significantly higher percentage of BWA's North American revenues. While the majority of the company's revenues and earnings are generated offshore, improvements in those segments will not offset poorer performance in North America in the second half of 2006. Over time, demand for the company's products, diversification from its customer and geographic base, savings from the restructuring program, and book of business awards should be conducive for resumption of revenue and earnings growth. However, in the near term, structural shifts in North American vehicle preferences and OEM market share will impact consolidated operating results, resultant coverage ratios, and limit progress in reducing indebtedness incurred for acquiring a 69.4% stake in Beru AG. Quantitative metrics are strong for the rating category, and qualitative factors in the Supplier Methodology remain fully supportive of the Baa2 rating. BorgWarner, headquartered in Auburn Hills, MI, produces highly engineered components and systems for vehicle powertrain applications. The company operates manufacturing and technical facilities in 62 locations in 17 countries. Revenues in 2005 were approximately US$4.3 billion. BRENNTAG HOLDING: Buyout Prompts S&P to Cut Credit Rating to B -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Germany-based full line chemicals distributor Brenntag Holding GmbH & Co. KG to 'B' from 'B+', following the completion of the buyout of the company. The rating was removed from CreditWatch, where it was placed on July 25. The outlook is stable. At the same time, the senior secured debt rating on Brenntag's increased EUR1.8 billion bank loan was lowered to 'B' from 'B+', and the subordinated debt rating on its increased EUR387 million second-lien loan was lowered to 'CCC+' from 'B-. All ratings were removed from CreditWatch, where they were placed on July 25, 2006. The '2' recovery rating on the bank loan was affirmed. "The rating actions reflect Brenntag's weaker financial profile, due to the incremental debt incurred in connection with the buyout by funds advised by private equity firm BC Partners, future funding requirements, and risks of executing the company's growth strategy that is likely to absorb most of the free cash flow and keep leverage high," said Standard & Poor's credit analyst Eve Greb. These credit metrics are not materially different from our expectation at the time of our CreditWatch update on Aug. 3, 2006. The company's track record of growth by acquisition, of increasing operating efficiency in recent years, and managing profitably through the chemical industry price cycle somewhat mitigates the credit risk. The new capital structure results in pro forma total lease- and pension-adjusted debt to EBITDA of 6.9x (6.4x unadjusted) as of June 30, 2006. Future deleveraging potential is considered low as a result of the growth strategy. The purchase price was financed by a rollover of existing debt, the addition of about EUR355 million of incremental debt, and a significant amount of equity injected by BC Partners Funds. The ratings on Brenntag reflect its high indebtedness and leverage. The group's highly leveraged financial profile is partly offset by its leading positions in the chemical distribution industry and management's better-than-expected success at improving the efficiency of operations. The ratings also benefit from Brenntag's relatively variable cost structure. "The stable outlook reflects our expectation that the group's credit protection will improve gradually over the medium term, with expected total debt to EBITDA of about 6.0x and EBITDA cash fixed-charge cover exceeding 2x," said Ms. Greb. "This is based on the expectation of a further improvement in the group's profitability, cash flow generation, and financial profile, as a result of Brenntag's solid market position, business stability, and proven track record in improving EBITDA generation." EWACO HANDELS: Claims Registration Ends October 9 ------------------------------------------------- Creditors of EWACO Handels- und Dienstleistungs-GmbH have until Oct. 9 to register their claims with court-appointed provisional administrator Carlos Mack. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fuerth Room 3 Ground Floor Office Building Baumenstrasse 32 Fuerth, 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 Fuerth opened bankruptcy proceedings against EWACO Handels- und Dienstleistungs-GmbH on Aug. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: EWACO Handels- und Dienstleistungs-GmbH Dambacher Str. 7 90763 Fuerth, Germany The administrator can be contacted at: Dr. Carlos Mack Gibitzenhofstr. 86 90443 Nuernberg, Germany Tel: 0911/2369398 Fax: 0911/2369566 GEWERBEPARK ODERTAL: Claims Registration Ends October 11 -------------------------------------------------------- Creditors of Gewerbepark Odertal GmbH have until Oct. 11 to register their claims with court-appointed provisional administrator Falk Eppert. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Nov. 15 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt opened bankruptcy proceedings against Gewerbepark Odertal GmbH on Aug. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gewerbepark Odertal GmbH Attn: Simone Hein, Manager Gutshof 1 16278 Pinnow, Germany The administrator can be contacted at: Falk Eppert Vietmannsdorfer Road 23 17268 Templin, Germany GUSTIBUS IMPORT: Creditors' Meeting Slated for October 12 --------------------------------------------------------- The court-appointed provisional administrator for Gustibus Import von und Handel mit Lebensmitteln GmbH, Udo Feser, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:50 a.m. on Oct. 12. 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 9:55 a.m. on Jan. 11, 2007, at the same venue. Creditors have until Oct. 15 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings Gustibus Import von und Handel mit Lebensmitteln GmbH on Aug. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gustibus Import von und Handel mit Lebensmitteln GmbH Ringbahnstrasse 22-30 12099 Berlin, Germany The administrator can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin, Germany MARTIN SCHULZE: Claims Registration Ends October 10 --------------------------------------------------- Creditors of Martin Schulze GmbH have until Oct. 10 to register their claims with court-appointed provisional administrator Herbert Feigl. Creditors and other interested parties are encouraged to attend the meeting at 10:15 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Halle-Saalkreis opened bankruptcy proceedings against Martin Schulze GmbH on Aug. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Martin Schulze GmbH Rockendorfer Weg 106a 06128 Halle, Germany Attn: Martin Varnhold, Manager Muehlberg 17 06184 Kabelsketal, Germany The administrator can be contacted at: Herbert Feigl Hansering 1 D-06108 Halle, Germany Tel: 0345/212220 Fax: 0345/2122222 OMDA DATENVERARBEITUNG: Claims Registration Ends October 10 ----------------------------------------------------------- Creditors of OMDA Datenverarbeitung und Organisation GmbH have until Oct. 10 to register their claims with court-appointed provisional administrator Stephan Jaeger. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 Munich, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Munich opened bankruptcy proceedings against OMDA Datenverarbeitung und Organisation GmbH on Aug. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: OMDA Datenverarbeitung und Organisation GmbH Passauer Str. 45 81369 Munich, Germany The administrator can be contacted at: Stephan Jaeger Leopoldstr. 139 80804 Munich, Germany Tel: 361930-750 Fax: 361930-999 PROCREDIT HOLDING: Fitch Affirms Individual C/D Rating ------------------------------------------------------ Fitch Ratings affirmed ProCredit Holding AG's ratings at Issuer Default BBB-, Short-term F3, Support 2, and Individual C/D. The Outlook on the Issuer Default rating is Stable. The IDR, Short-term and Support ratings reflect Fitch's view that there is a high probability that support would be made available to PCH from its owners, in case of need, in light of the group's important developmental role in providing financing to micro- and small- and medium-enterprise customers in emerging markets. The Stable Outlook reflects Fitch's view that the propensity and ability of PCH's owners to provide support is unlikely to change. The Individual rating reflects the niche PCH has established in micro-finance and SME lending, the group's good risk management controls, reasonable profitability and strong asset quality to date. However, it also considers the group's small equity base and modest capitalization given its rapid growth and the difficult operating environment in local markets. "While we do not envisage any change in the Individual rating in the foreseeable future, it could weaken if the group is unable to manage the credit and operational risks resulting from its entry into new markets and rapid growth, and/or if capitalization declines sharply," disclosed Lindsey Liddell, Director in Fitch's Financial Institutions Group. "Greater scale and reduced dependence on shareholder funding could contribute to an upgrade," he added. PCH's shareholders include: -- Kreditanstalt fuer Wiederaufbau, which is state-guaranteed and one of Germany's largest banks, as well as one of the largest development banks in Europe; -- the DOEN Foundation; International Finance Corporation; -- BIO, a Belgian development institution; -- the Netherlands Development Finance Company; -- Internationale Projekt Consult GmbH and its sister company IPC Invest; and -- a number of smaller development-orientated funds and institutions. Most of these shareholders also currently have stakes in some of the individual ProCredit banks. The ProCredit network consists of 19 banks in Central and Eastern Europe, Latin America and Africa, which provide financing to micro- and SME customers. At end-May 2006 group total assets amounted to EUR2.5 billion. PCH is responsible for group administration, strategy, risk management controls and supervision. It is not regulated as a banking group, but ProCredit banks are regulated in their home countries. SPS VERTRIEBS: Claims Registration Ends October 9 ------------------------------------------------- Creditors of SPS Vertriebs GmbH have until Oct. 9 to register their claims with court-appointed provisional administrator Hendrik Rogge. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Nov. 6 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against SPS Vertriebs GmbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SPS Vertriebs GmbH Attn: Harald Jess, Manager Muehlenstrasse 13 22869 Schenefeld, Germany The administrator can be contacted at: Hendrik Rogge Albert-Einstein-Ring 15 22761 Hamburg, Germany Tel: 897186-0 Fax: 897186-11 START VERWALTUNGS: Claims Registration Ends October 9 ----------------------------------------------------- Creditors of "Start" Verwaltungs GmbH have until Oct. 9 to register their claims with court-appointed provisional administrator Carsten Morgenstern. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 21 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Law Courts Prince Road 21 Chemnitz, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Chemnitz opened bankruptcy proceedings against "Start" Verwaltungs GmbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: "Start" Verwaltungs GmbH Attn: Kai-Michael Schwarz, Manager Abrahamschacht 9 09496 Marienberg, Germany The administrator can be contacted at: Carsten Morgenstern Michaelstr. 71 09116 Chemnitz, Germany E-mail: chemnitz@hww-kanzlei.de WB INDUSTRIEMONTAGE: Claims Registration Ends October 10 -------------------------------------------------------- Creditors of WB Industriemontage GmbH have until Oct. 10 to register their claims with court-appointed provisional administrator Ralf Sinz. Creditors and other interested parties are encouraged to attend the meeting at 9:40 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 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against WB Industriemontage GmbH on Aug. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: WB Industriemontage GmbH Attn: Winfried Dieter Butkaitis Wesseling, Manager Muehlenweg 108 50389 Wesseling, Germany The administrator can be contacted at: Dr. Ralf Sinz Zeughausstr. 28 - 38 50667 Cologne, Germany WITT GMBH: Claims Registration Ends October 10 ---------------------------------------------- Creditors of Witt GmbH Elektrotechnik have until Oct. 10 to register their claims with court-appointed provisional administrator Axel Raap. Creditors and other interested parties are encouraged to attend the meeting at 8:25 a.m. on Oct. 23 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 Pinneberg Hall 5 1st Floor Station Route 17 25421 Pinneberg, 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 Pinneberg opened bankruptcy proceedings against Witt GmbH Elektrotechnik on Aug. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Witt GmbH Elektrotechnik Attn: Karl-Heinz Witt, Manager Dorfstr. 2a 25499 Tangstedt, Germany The administrator can be contacted at: Axel Raap Herrengraben 5 20459 Hamburg, Germany ============= I R E L A N D ============= DEKANIA EUROPE: Fitch Gives Final BB Rating to EUR12-Mln Notes -------------------------------------------------------------- Fitch Ratings assigned Dekania Europe CDO II PLC's upcoming issue of EUR275.5 million credit-linked notes due 2037 final ratings. The transaction is a cash flow securitization of predominantly subordinated debt instruments issued by European insurance companies, banks and real estate companies. The collateral manager is Dekania Capital Management LLC, an affiliate of Cohen Bros. & Company LLC. -- EUR165,000,000 Class A1 floating rate ISIN XS0265843531 AAA; -- EUR25,000,000 Class A2-A floating rate ISIN XS0265847441 AAA; -- EUR5,000,000 Class A2-B fixed rate ISIN XS0266475507 AAA; -- EUR26,000,000 Class B floating rate ISIN XS0265867985 AA; -- EUR28,000,000 Class C floating rate ISIN XS0265871409 A; -- EUR12,500,000 Class D1 floating rate ISIN XS0265875145 BBB; -- EUR2,000,000 Class D2 fixed rate ISIN XS0266479913 BBB; and -- EUR12,000,000 Class E floating rate ISIN XS0265883164 BB. The final ratings on the Class A notes address the timely payment of interest and the ultimate repayment of principal according to the terms and conditions of the notes. For Classes B, C, D1, D2 and E, the final ratings address the ultimate repayment of cumulative interest and principal in accordance with the terms and conditions of the notes. The final ratings are based on the credit quality of the collateral, available credit enhancement achieved through overcollateralization, performance tests, the application of excess spread, the collateral manager's administrative capabilities and the sound financial and legal structure of the transaction. To estimate the cumulative gross default rate of the collateral, Fitch's insurance and financial institutions group conducted a credit assessment of all the obligors for which no public credit rating is available. The issuer is a company with limited liability, incorporated under the laws of Ireland. The proceeds from the note issuance have been used to purchase a portfolio of trust preferred securities issued by primarily banks and insurance companies. SCOTTISH RE: Ends & Cuts Syndicated Credit Facilities ----------------------------------------------------- Scottish Re Group Limited (NYSE: SCT) has permanently reduced the aggregate commitments under the Amended and Restated Credit Agreement dated July 14, 2005, among Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, Scottish Re (U.S.), Inc. and Scottish Re Limited and a syndicate of banks to US$42.8 million. The Company also announced that Scottish Annuity & Life Insurance Company (Cayman) Ltd., has terminated the Letter of Credit Agreement dated Aug. 18, 2005, among Scottish Re (Dublin) Limited, Scottish Annuity & Life Insurance Company (Cayman) Ltd., various financial institutions, and Bank of America, N.A., as administrative agent, effective September 22, 2006. All letters of credit outstanding under that agreement, in an aggregate amount of US$10 million, have been cancelled. "As previously stated, the availability of further borrowings under these credit facilities has been uncertain," Dean Miller, Chief Financial Officer, remarked. "Rather than continue negotiations with the banking syndicate, we elected to permanently reduce the US$200 million credit facility to US$42.8 million, which is the face amount of outstanding letters of credit under the agreement. Using existing available liquidity, we are currently working with our clients to provide them with alternate letters of credit or assets in trust to replace these outstanding letters of credit." "Once these alternate letters of credit or assets in trust are in place, we can terminate the US$200 million credit facility which will eliminate the current restriction on the Company's ability to transfer funds to Scottish Re Group Limited in order to pay the US$115 million 4.5% Convertible Notes which can be put to the Company on Dec. 6, 2006. In addition, we terminated the US$30 million letter of credit facility available to our Dublin subsidiary." About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Sept. 7, Moody's Investors Service changed the direction of review for Scottish Re Group Limited's ratings to uncertain from possible downgrade. The change in the direction of the ratings review impacts the company's Ba3 senior unsecured debt rating and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (U.S.), Inc. Moody's Rates Scottish Re Group Limited as: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 In August, Fitch Ratings also initiated these rating actions: -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% US$115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% US$142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% US$125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. Fitch said all ratings remain on Rating Watch Negative. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. ========= I T A L Y ========= AVIO HOLDING: S&P Withdraws B Corporate Credit Ratings ------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'B' corporate credit ratings on Italian-based aerospace group Avio Holding SpA and its ultimate parent Aero Invest 1 S.A. at the company's request. In August 2006, the company was purchased by the private equity sponsor Cinven from the Carlyle group through a secondary buyout for an enterprise value of about EUR2.6 billion. =================== K A Z A K H S T A N =================== DIAS T: Karaganda Court Opens Bankruptcy Proceedings ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Dias T (RNN 302600211896). The company is located at: Shataluk Str. 42-12 Satpaev Karaganda Region Kazakhstan JELDORVODOTEPLOSNABJENIYE: Creditors' Claims Due Oct. 20 -------------------------------------------------------- The Branch of OJSC Road Water and Heat Supply Jeldorvodoteplosnabjeniye has declared insolvency. Creditors have until Oct. 20 to submit written proofs of claim to: OJSC Jeldorvodoteplosnabjeniye Baimuhanov Str. 70 Atyrau Atyrau Region Kazakhstan KUAT-COMPANY: South Kazakhstan Court Starts Bankruptcy Procedure ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Kuat-Company. PRIOZERNOYE: Proof of Claim Deadline Slated for Oct. 20 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared State Utility Enterprise Priozernoye insolvent on July 18. Creditors have until Oct. 20 to submit written proofs of claim to: Priozernoye Gogol Str. 177a Kostanai Kostanai Region Kazakhstan SHYBERLIK: Creditors Must File Claims by Oct. 20 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Shyberlik insolvent on July 31. Creditors have until Oct. 20 to submit written proofs of claim to: LLP Shyberlik Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan SIRIUS-2004: Claims Registration Ends Oct. 20 --------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Sirius-2004 insolvent on July 31. Creditors have until Oct. 20 to submit written proofs of claim to: LLP Sirius-2004 Gogol Str. 177a Kostanai Kostanai Region Kazakhstan STROYPROJECT: Creditors' Claims Due Oct. 20 ------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Construction Company Stroyproject into compulsory liquidation. Creditors have until Oct. 20 to submit written proofs of claim to: LLP Stroyproject Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan SUNFLOWER: Proof of Claim Deadline Slated for Oct. 20 ----------------------------------------------------- LLP Sunflower has declared insolvency. Creditors have until Oct. 20 to submit written proofs of claim to: LLP Sunflower Jarokov Str. 207-14 Bostandyk District 050060 Almaty, Kazakhstan Tel: 8 (3272) 75-14-14 TECHNO COMPANY: Claims Registration Ends Oct. 20 ------------------------------------------------ LLP Techno Company has declared insolvency. Creditors have until Oct. 20 to submit written proofs of claim to: LLP Techno Company Corps 3, 4-145 Berkimbaev Str. 101/34 Ekibastuz Pavlodar Region Kazakhstan UMIT-SU: South Kazakhstan Court Begins Bankruptcy Proceedings ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Umit-Su. =================== K Y R G Y Z S T A N =================== ADANA-KONTI: Proof of Claim Deadline Slated for Nov. 8 ------------------------------------------------------ LLC Adana-Konti has declared insolvency. Creditors have until Nov. 8 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 64-80-31. TITAN SECURITY: Creditors Must File Claims by Nov. 8 ---------------------------------------------------- LLC Security Agency Titan Security has declared insolvency. Creditors have until Nov. 8 to submit written proofs of claim to: LLC Titan Security Bektenov Str. 10 Bishkek, Kyrgyzstan ================= L I T H U A N I A ================= BANKAS SNORAS: Moody's Assigns D- Financial Strength Rating ----------------------------------------------------------- Moody's Investors Service assigned local currency and foreign currency deposit ratings of Ba3/Non-Prime and a financial strength rating of D- to Bankas Snoras AB. The ratings carry a stable outlook. Bankas Snoras is predominantly owned by Russia's Conversbank and provides banking services to retail and corporate clients. Services include lending, deposit-taking, leasing, real estate management, project financing, credit cards, payment collection and foreign currency services. According to Moody's, the Ba3/NP/D- ratings reflect Bankas Snoras' significant market share in Lithuania (currently amounting to ca. 8.5% by total assets) as well as the strategic potential arising as a result of the bank's recent acquisition of Latvijas Krajbanka. Bankas Snoras also benefits from a stable revenue mix although interest income could in time become more susceptible to margin pressure. Bankas Snoras should be in a position to take advantage of developments within the Lithuanian and Latvian economies as well as growing demand for banking products particularly in light of EU accession. Nevertheless, the bank faces competitive challenges owing to the presence of larger foreign-owned players in Lithuania and Latvia, which are in a position to benefit from the commercial scale and expertise of their respective backers. Snoras Bankas' supervisory board exclusively comprises Conversgroup employees and is therefore not independent of Conversgroup, its largest single shareholder. In evaluating board effectiveness, Moody's assesses whether directors can independently influence key policies in terms of strategy, risk management, management succession and compensation, amongst others. Consequently, Moody's will closely follow Snoras Bankas' progress in this area. Bankas Snoras' loan portfolio is primarily oriented towards the Lithuanian and Latvian markets. Non-performing loan indicators remain high relative to peers and there are a number of large individual credit exposures relative to the size of the equity base. Furthermore, loan growth was very substantial in 2005. Ongoing loan growth of such magnitude would inevitably lead to reduced seasoning of the loan book. Similar to other banks operating in the Baltic region, the institution's credit standing remains constrained by the less mature operating environment. Concerns are mitigated by the fact that that the loan book evidences a fair degree of sectoral diversification whilst a substantial proportion of the loan book is secured by real estate and other forms of collateral. Moody's added that capitalization levels are low, particularly in view of the loan concentration risks. While the recent acquisition of Latvijas Krajbanka has strengthened Snoras Bankas' market reach, capitalization levels have been stretched nonetheless. Bankas Snoras' deposit base, which accounts for 92% of funding requirements, is characterized by a preponderance of retail resident deposits. Consequently, the institution is less vulnerable to the threat of external shocks than banks that have a more corporate (and less granular) or non-resident deposit base. ALM currency mismatch is low and conservatively managed. Bankas Snoras additionally maintains good liquidity levels, reflected by its liquidity ratio of 51% as at Dec. 31, 2005, which is well above the minimum regulatory requirement of 30%. Interest rate risk management is not particularly developed but is mitigated by the relatively short-term profile of the institution's bond and loan portfolios. Market risk is contained, reflected in part by the investment-grade nature of the bank's securities portfolio and the fact that trading activities are mainly client-driven. Headquartered in Vilnius, Lithuania, Bankas Snoras had total assets in the amount of LTL4.566 billion (EUR1.322 billion) as at June 30, 2006. ===================== N E T H E R L A N D S ===================== SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer ------------------------------------------------------------ Seagate Technology disclosed the pricing of its offering of US$300 million of Floating Rate Senior Notes due 2009, US$600 million of 6.375% Senior Notes due 2011 and US$600 million of 6.8% Senior Notes due 2016. The notes are expected to be issued by Seagate Technology HDD Holdings, a direct wholly-owned subsidiary of the Company, and fully and unconditionally guaranteed by the Company. The 2009 Notes will bear interest at a floating rate equal to three-month LIBOR plus 0.84% per year, the 2011 Notes will bear interest at the rate of 6.375% per year, and the 2016 Notes will bear interest at the rate of 6.800% per year. Interest will be payable quarterly on Jan. 1, April 1, July 1 and Oct. 1 for the 2009 Notes and semi-annually on April 1 and Oct. 1 for the 2011 Notes and 2016 Notes. The Company may redeem the 2011 Notes and the 2016 Notes at any time prior to their maturity for a specified make-whole premium redemption price. The 2009 Notes will not be redeemable prior to their maturity date. The net proceeds from the offering is intended to be used to redeem the US$400 million principal amount of the Company's 8% Senior Notes due 2009, to fund a portion of its US$2.5 billion stock repurchase program and for general corporate purposes. In connection with the offering, the Company and Seagate Technology HDD Holdings entered into an Underwriting Agreement with the underwriters of the offering. As reported in the Troubled Company Reporter on Sept. 15, 2006 Morgan Stanley, JPMorgan and Goldman, Sachs & Co. are acting as joint book-running managers of the offering. Headquartered in Scotts Valley, California, Seagate Technology (NYSE: STX) -- http://www.seagate.com/-- designs, manufactures and markets hard disc drives, providing products for a wide- range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award- winning products, customer support and reliability to meet the world's growing demand for information storage. In Europe, the company maintains operations in France, Germany, the Netherlands and the United Kingdom. * * * As reported in the Troubled Company Reporter on Sept. 13, 2006, Moody's Investors Service affirmed the Ba1 Corporate Family Rating of Seagate Technology HDD Holdings. At the same time, Moody's assigned new ratings to a proposed new debt issuance of US$1.25 billion to finance Seagate's recently announced US$2.5 billion stock buyback program, as well as refinance Seagate's existing US$400 million 2009 notes. Ratings assigned include a Ba1 rating on Floating rate notes due 2009, Ba1 rating on Senior notes due 2011 and 2016. VNU GROUP: New Owners Mull Auction of European Portfolio -------------------------------------------------------- The new private equity owners of VNU Group B.V. plan to put the company's European business magazine and trade shows on the market, Andrew Edgecliffe-Johnson writes for The Financial Times. The auction is Valcon Acquisition BV's first large-scale disposals since winning a EUR7.6 billion bid to take control of the Dutch publisher in June, and a month after VNU hired David Calhoun, the former vice chairman of General Electric, as chief executive. According to the report, the group has appointed Goldman Sachs and The van Tulleken Company to find buyers for 70 magazines and 70 exhibitions, which have combined revenues of about EUR235 million. VNU's European portfolio to be put on sale include, among others: -- the Intermediair career development title, -- Management Team magazine, -- U.K.'s Computing and Accounting Age magazines, -- VNUnet online, -- Linux-World, and -- Holland Art Fair. People briefed on the portfolio told FT that VNU's Dutch assets, which include Intermediair and Management Team magazine, have revenues of about EUR115 million, and could comfortably be worth EUR350 million alone. They said that Intermediair could likely be the most attractive asset to potential buyers, given its market leading position and established online presence. FT discloses that the company's UK business has about EUR75 million in revenues while its French, Germany, Spain and Italian assets have combined revenues of about EUR45 million and are understood to be unprofitable. Although the company's US business media titles, such as Billboard, Adweek and The Hollywood Reporter, are not part in the European auction, some analysts have speculated they could also be candidates for disposal, the paper relates. Headquartered in Haarlem, Netherlands, VNU N.V. -- http://www.vnu.com/-- operates publishing businesses and offers marketing and media information. The Company publishes and distributes telephone directories, children's books and periodicals, and business information periodicals. VNU also offers television and Internet usage data and advertising expenditure analysis. * * * As reported in TCR-Europe on July 20, Moody's Investors Service downgraded the Corporate Family Rating of VNU NV to B2 from B1 and its senior unsecured debt ratings to Caa1 from B1. This concludes Moody's review of VNU's ratings, which was last continued on May 26. Rating downgraded to B2 from B1: -- Corporate Family Rating Ratings downgraded to Caa1 from B1: -- floating rate Euro MT Notes due 2012; -- 6.75% Euro MT Notes due 2012; -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT Notes due 2010; -- 5.625% GBP MT Notes due 2010/17; -- 5.5% Eurobonds due 2008; -- 6.75% Eurobonds due 2008; -- 6.625% Eurobonds due 2007; -- Euro MTN program; and -- Nielsen Media Research Inc.'s 7.6% Notes due 2009 guaranteed by VNU. In a TCR-Europe report on July 19, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its 'B' short-term corporate credit rating. All ratings have been removed from CreditWatch, where they were placed with negative implications on Oct. 12, 2005. S&P said the outlook is negative. =========== N O R W A Y =========== AKER KVAERNER: Fitch Lifts Default Rating to BBB- from BB+ ---------------------------------------------------------- Fitch Ratings upgraded Norway-based Aker Kvaerner Oil & Gas Group AS's Issuer Default rating to BBB- from BB+. Following the upgrade, the Outlook is now Stable. The EUR260 million second-lien bond issue guaranteed by AK O&G is also upgraded to BBB- from BB+. The upgrade reflects the progress made by AK O&G in its operating performance towards the 6.5%-7.0% EBITDA-margin target for 2007. It also takes into account the company's strong financial profile with ample liquidity and a robust sector outlook. The sector strength is evidenced by the company's record NOK43 billion order backlog at Q206 and the prospective oil & gas industry investments in liquefied natural gas and deepwater until 2010. Strong demand has returned pricing power to the oil field services sector. AK O&G's reported EBITDA margin excluding exceptional items was 6.2% at H106 compared with 5.6% at YE05. Fitch expects the YE06 EBITDA margin to be close to the 2007 target. At H106 revenue and EBITDA contributions from every division were ahead of the company's expectations. "The main drivers of AK O&G's financial performance have been its proven ability to price projects, cut costs and control risk. The company's financial profile is further underpinned by its low leverage and available cash position," disclosed Rebeca Ehrnrooth, Director in Fitch's Energy & Utility team. AK O&G has a solid foundation in what Fitch considers to be a relatively volatile sector dominated by large and bulky orders. However, the agency is of the view that the company's revenues are constrained by the oil majors' capital expenditure budgets, which are very substantial in an environment of high commodity prices and amid pressure to replace reserves. The Stable Outlook is based on Fitch's expectation that AK O&G will continue to strengthen its credit ratios while maintaining its leading market positions. AK O&G has maintained its net cash position since YE05, demonstrating a commitment to strong liquidity. Leverage, measured as total lease-adjusted debt/ extrapolated H106 operating EBITDAR, was 1.4x compared with 2.2x at YE05. Debt excluding operating leases was NOK2.1 billion at H106. This comprised the EUR260 million seven-year second lien note issued in 2004. This bond is callable in June 2007 at 108.375%. Fitch expects AK O&G's refinancing approach to be opportunistic; a refinancing exercise might be conducted before June 2007. The EUR150 million revolving senior secured credit facility remains unused. While substantial bonding facilities rank senior to the bond and senior credit facility, Fitch notes that none of AK O&G's performance bonds has been called for more than 10 years, underlining the company's solid track record. AK O&G is a global provider of products and services for the offshore upstream oil and gas industry. It has operations in more than 20 countries, with principal operations in Norway, the U.K. and the U.S. FY05 revenues and EBITDA were NOK28.2 billion and NOK1.7 billion respectively. The group comprises three divisions: maintenance, modifications and operations; field development; and subsea, products & technologies. =========== P O L A N D =========== AMERICAN AXLE: 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 for the U.S. automotive sector, the rating agency confirmed its Ba3 Corporate Family Rating for American Axle & Manufacturing, Inc., and its American Axle & Manufacturing Holdings Inc. subsidiary. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: American Axle & Manufacturing, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- unsecured term loan Ba3 Ba3 LGD4 57% senior unsecured notes Ba3 Ba3 LGD4 57% Issuer: American Axle & Manufacturing Holdings, Inc. (Subsidiary) Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- senior convertible notes Ba3 Ba3 LGD4 57% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About American Axle American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Poland, Scotland and South Korea. AUTOCAM CORPORATION: 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 for the U.S. automotive sector, the rating agency confirmed its Caa1 Corporate Family Rating for Autocam Corporation. Additionally, Moody's revised its probability-of- default ratings and assigned loss-given-default ratings on two loans and a bond issue: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- multi-currency secured revolving credit facility B3 B1 LGD2 13% US dollar secured term loan B3 B1 LGD2 13% 10.875% senior subordinated notes Ca Caa2 LGD5 79% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Kenwood, Michigan, Autocam Corp. -- http://www.autocam.com/-- designs and manufactures precision machined, close tolerance, specialty metal alloy components used in the transportation and medical implement industries. The company had revenues of approximately US$350 million in 2004. The company employs 2,500 workers and has manufacturing facilities in North and South America, Europe and China. In Europe, Autocam maintains operations in France and Poland. VERIFONE INC: S&P Affirms BB- Rating on US$540-Mln Bank Loan ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on San Jose, Calif.-based VeriFone Inc. and assigned its 'BB-' debt rating, with a recovery rating of '3', to the proposed US$540 million first-lien bank facility. The bank facility consists of a US$40 million revolving credit facility and a US$500 million term loan. Proceeds from the facility, along with approximately US$475 million of cash and equity, will be used to fund the acquisition of Lipman Electronic Engineering Ltd. The outlook is negative. "The ratings on VeriFone reflect the company's increased debt leverage, acquisitive growth strategy, and relatively short financial history as an independent entity," said Stndard & Poor's credit analyst Martha Toll-Reed. These factors are partially offset by VeriFone's leading position in the niche market for electronic payment solutions, a diversified customer base and, pro forma for the proposed acquisition, expanded market and product base. VeriFone designs, markets and services system solutions that enable secure electronic payments. Organic revenue growth has accelerated over the past two years, benefiting from: -- management's focus on increasing penetration of electronic payments in international markets, -- replacement of existing solutions to accommodate newer payment applications, and -- an overall market shift from paper-based transactions to electronic transactions at the point of sale. The company reported revenues of US$148 million in the quarter ended July 31, 2006, up 17% over the prior year period. EBITDA margins have benefited from increased operating leverage and are currently in the low-20% range. However, the Lipman acquisition will be VeriFone's largest to date, and could pose integration and operational challenges. =========== R U S S I A =========== AGRO-TEKH-PROM: Court Names A. Lyasman as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Omsk Region appointed Ms. A. Lyasman as Insolvency Manager for OJSC Agro-Tekh-Prom. 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. A46-10605/2006. The Debtor can be reached at: OJSC Agro-Tekh-Prom Marksa Pr. 4 644024 Omsk Region Russia ASBESTOVSKIY FACTORY: L. Korovnikova to Manage Assets ----------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Ms. L. Korovnikova as Insolvency Manager for OJSC Asbestovskiy Factory of Reinforced Concrete Goods. She can be reached at: L. Korovnikova Post User Box 177 620062 Ekaterinburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-15174/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: OJSC Asbestovskiy Factory of Reinforced Concrete Goods Promyshlennaya Str. 2 Asbest Sverdlovsk Region Russia BALT-COAL: Court Names P. Tarasov as Insolvency Manager ------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. P. Tarasov as Insolvency Manager for CJSC Balt- Coal. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-23089/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Balt-Coal 20th Liniya V.O. 7 St. Petersburg Region Russia BARNAULSKIY: Court Names V. Yakovlev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. V. Yakovlev as Insolvency Manager for OJSC Barnaulskiy Liqueur-Vodka Distillery (TIN 2224014814). He can be reached at: V. Yakovlev Post User Box 102 Barnaul-56 656056 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. AO3-1116/06-B. The Debtor can be reached at: OJSC Barnaulskiy Liqueur-Vodka Distillery Komsomolskiy Pr. 122 Barnaul Altay Region Russia BIKINSKIY BAKERY: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Khabarovsk Region commenced bankruptcy supervision procedure on OJSC Bikinskiy Bakery. The case is docketed under Case No. A73-7242/2006-36. The Temporary Insolvency Manager is: L. Stepanova Office 216 Serysheva Str. 22 680028 Khabarovsk Region Russia The Debtor can be reached at: OJSC Bikinskiy Bakery Dzerkzhinskogo Str. 77 Bikin Khabarovsk Region Russia BUILDER-29: Krasnodar Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Krasnodar Region commenced bankruptcy supervision procedure on LLC Builder-29 (TIN 2320002233, KPP 232001001). The case is docketed under Case No. A-32-67678/2005-1/700-B. The Temporary Insolvency Manager is: S. Savchenko Post User Box 29 Labinsk 352500 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: LLC Builder-29 Novoselov Str. 5a Sochi Krasnodar Region Russia CHEBAKOVO: Yaroslavl Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Yaroslavl Region commenced bankruptcy supervision procedure on OJSC Breeding Factory Chebakovo. The case is docketed under Case No. A82-2796/06-30-B/38. The Temporary Insolvency Manager is: D. Ryndenko Post User Box 13 Rybinsk 152930 Yaroslavl Region Russia The Debtor can be reached at: OJSC Breeding Factory Chebakovo Nikulskoye Tutaevskiy Region 152336 Yaroslavl Region Russia DAL-TRADING-SERVICE: Court Starts Bankruptcy Supervision -------------------------------------------------------- The Arbitration Court of Khabarovsk Region commenced bankruptcy supervision procedure on CJSC Dal-Trading-Service. The case is docketed under Case No. A73-7798/2006-36. The Temporary Insolvency Manager is: T. Semenova Post User Box 4227 GOS-13 680013 Khabarovsk Region Russia Tel./Fax: (4212) 381-996 The Debtor can be reached at: CJSC Dal-Trading-Service Sovkhoznaya Str. 8 Ilyinka 682304 Khabarovsk Region Russia FOREST GLADE: Bankruptcy Hearing Slated for Nov. 14 --------------------------------------------------- The Arbitration Court of Krasnoyarsk Region will convene at 9:00 a.m. on Nov. 14 to hear the bankruptcy supervision procedure on LLC Forest Glade. The case is docketed under Case No. A33-11074/2006. The Temporary Insolvency Manager is: A. Zyatkov Apartment 2 Moskovskaya Str. 5 Bolshaya Urya Kanskiy Region 663624 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Forest Glade Verkhnyaya Urya Irbeyskiy Region Krasnoyarsk Region Russia GEFEST: Tula Court Starts Bankruptcy Supervision ------------------------------------------------ The Arbitration Court of Tula Region commenced bankruptcy supervision procedure on LLC Bolokhovskiy Engineering Factory Gefest. The case is docketed under Case No. A68-1725/06-113/B. The Temporary Insolvency Manager is: Y. Laptev Post User Box 9383 Post Office 24 644024 Omsk Region Russia The Debtor can be reached at: LLC Bolokhovskiy Engineering Factory Gefest Mira Str. 32 Bolokhovo Kireevskiy Region 301280 Tula Region Russia INTER-CONSTRUCTION: Court Names A. Kubasov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. A. Kubasov as Insolvency Manager for CJSC Building Company Inter-Construction (TIN 7710179115). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-34771/06-74-538 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Building Company Inter-Construction Chayanova Str. 8/26 125047 Moscow Region Russia INVEST-MANAGER: Court Names G. Chmutina as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Magadan Region appointed Ms. G. Chmutina as Insolvency Manager for OJSC Invest-Manager. She can be reached at: G. Chmutina Office 105 Sv. Innokentiya Per. 13 675000 Blagoveshensk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A37-1360/06-8B. The Debtor can be reached at: OJSC Invest-Manager Proletarskaya Str. 12 84 685000 Magadan Region Russia ISKRA: Court Names A. Ivanov as Insolvency Manager -------------------------------------------------- The Arbitration Court of Ulyanovsk Region appointed Mr. A. Ivanov as Insolvency Manager for OJSC Factory Iskra. He can be reached at: A. Ivanov Post User Box 1712 432063 Ulyanovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-9544/04-21/37-b. The Debtor can be reached at: OJSC Factory Iskra Narimanova Pr. 75 432030 Ulyanovsk Region Russia KIRISHSKIY FACTORY: Court Names P. Tarasov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. P. Tarasov as Insolvency Manager for LLC Kirishskiy Factory of Metal Constructions. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-22039/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Kirishskiy Factory of Metal Constructions Fsue KBKhZ. Glazhevskaya Region Kirishskiy Region St. Petersburg and Leningrad Region Russia KURGANSKOYE PASSENGER 2: O. Pugin to Manage Insolvency Assets ------------------------------------------------------------- The Arbitration Court of Kurgan Region appointed Mr. O. Pugin as Insolvency Manager for OJSC Kurganskoye Passenger Transport Enterprise 2. He can be reached at: O. Pugin 3rd location 14-124 640023 Kurgan Region Russia Tel: 8-3522-56-38-87 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34-3182/2006. The Debtor can be reached at: OJSC Kurganskoye Passenger Transport Enterprise 2 Khimmashevskay Str. 6a Kurgan Region Russia LIMESTONE: Orel Court Names P. Klimenko as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Orel Region appointed Mr. P. Klimenko as Insolvency Manager for OJSC Limestone. The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-2686/06-17B. The Arbitration Court of Orel Region is located at: Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: OJSC Limestone Livenskaya Str. 10a Russkiy Brod Verkhovskiy Region Orel Region Russia MOSKALENSK-AGRO-PROM-TRANS: A. Lyasman to Manage Assets ------------------------------------------------------- The Arbitration Court of Omsk Region appointed Ms. A. Lyasman as Insolvency Manager for OJSC Moskalensk-Agro-Prom-Trans. 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. A46-10483/2006. The Debtor can be reached at: OJSC Moskalensk-Agro-Prom-Trans Marksa Pr. 18, 10 644042 Omsk Region Russia NORD-STROY-2: Court Names P. Tarasov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. P. Tarasov as Insolvency Manager for CJSC Factory Building Enterprise Nord-Stroy-2 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-22239/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Factory Building Enterprise Nord-Stroy-2 Zheleznovodskaya Str. 17/5. St. Petersburg Region Russia NORTH-WEST TELECOM: Improved Performance Cues S&P to Lift Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on North-West Telecom (JSC), the incumbent fixed-line telecommunications operator in the northwest region of Russia, to 'BB-' from 'B+'. This reflects the company's improving business profile and continued moderate financial risk exposure. The outlook is stable. At the same time, Standard & Poor's raised its long-term Russia national scale rating on NWT to 'ruAA-' from 'ruA+', and assigned its 'ruAA-' national scale rating to the company's proposed Russian ruble (RUR) 2 billion bond issue. "The upgrade reflects NWT's improving business position, which benefits from the company's leading market share in traditional telephony, and progress in upgrading its network," said Standard & Poor's credit analyst Lorenzo Sliusarev. "The company is also benefiting from strengthening operating profitability, and steadily improving regulatory and industry dynamics." NWT's fairly prudent financial policy, moderate exposure to financial risk, and improving liquidity further support the ratings. The ratings on NWT remain constrained, however, by its limited revenue diversification and the need for further network improvements and active development of additional services. NWT is also subject to fairly intense competition in key franchise areas, as well as uncertainty over continuing telecoms industry restructuring in Russia. NWT's market position in the key telephony segments is improving, however, and the ongoing expansion and upgrading of NWT's network is enabling it to increase the availability of new services and target an expanded range of clients. Furthermore, a strategic focus on cost control and growth in value-added services is enhancing the company's operating profitability, with the EBITDA margin likely to average at about 35% over the short to medium term. Standard & Poor's expects NWT's credit profile to remain supported by: -- the company's gradually improving operations; -- its commitment to a moderate financial policy; and -- prudent debt and liquidity management. "Ratings upside potential would require a material strengthening of the company's business position, and the continuation of positive trends in the Russian telecoms sector and capital markets," said Mr. Sliusarev. "Any increase in regulatory and market risks, or a substantial weakening of NWT's financial profile, could put pressure on the ratings." OIL-GAS-SVYAZ-STROY: N. Lapchuk to Manage Assets ------------------------------------------------ The Arbitration Court of Novosibirsk Region appointed Mr. N. Lapchuk as Insolvency Manager for OJSC Oil-Gas-Svyaz-Story. He can be reached at: N. Lapchuk Galushaka Str. 3-1 Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-8185/06-10/139. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: N. Lapchuk Galushaka Str. 3-1 Novosibirsk Region Russia OZERSKOYE: Court Names A. Morozov as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Kemerovo Region appointed Mr. A. Morozov as Insolvency Manager for OJSC Ozerskoye. He can be reached at: A. Morozov Post User Box 22549 650070 Kemerovo Region Russia Tel: (3842) 25-58-33 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The court will convene at 9:30 a.m. on Aug. 1, 2007, to hear the bankruptcy supervision procedure. The case is docketed under Case No. A27-5515/2006-4. The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: OJSC Ozerskoye Tsentralnaya Str. 6 Ozerki Promyshlenovskiy Region 652380 Kemerovo Region Russia PIONEER: Court Names V. Kiryaev as Insolvency Manager ----------------------------------------------------- The Arbitration Court of Sverdlovsk Region appointed Mr. V. Kiryaev as Insolvency Manager for OJSC Breeding Factory Pioneer. He can be reached at: V. Kiryaev Vikulova 35/1-136 Vikulova 620131 Ekaterinburg Region Russia Tel: 8-912-26-22-917 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-650/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: OJSC Breeding Factory Pioneer Pionerskiy Talitskiy Region Sverdlovsk Region Russia REINFORCED-CONCRETE GOODS: M. Bogatova to Manage Assets ------------------------------------------------------- The Arbitration Court of Kemerovo Region appointed Ms. M. Bogatova as Insolvency Manager for OJSC Factory of Reinforced- Concrete Goods. She can be reached at: M. Bogatova Post User Box 3084 650024 Kemerovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Court will convene on Oct. 24 to hear the bankruptcy supervision procedure. The case is docketed under Case No. A27-11409/2006-4. The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: OJSC Factory Of Reinforced-Concrete Goods Kuznetskiy Pr. 230 Kemerovo Region Russia SIBERIAN VENTILATION: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Tyumen Region commenced bankruptcy supervision procedure on CJSC Siberian Ventilation Systems. The case is docketed under Case No. A70-5061/3-2006. The Temporary Insolvency Manager is: V. Bolba Post User Box 64 625001 Tyumen Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia SIG EURO-STROY: Moscow Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy supervision procedure on CJSC Sig Euro-Stroy (TIN 7706262025). The case is docketed under Case No. A40-47022/06-103-983B. The Temporary Insolvency Manager is: M. Dyakonov Post User Box 481 111141 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 Sig Euro-Stroy Staromonetnyj Per. 9 Moscow Region Russia SOROCHINSKIY DIARY: Court Starts Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Orenburg Region commenced bankruptcy supervision procedure on OJSC Agro Complex Sorochinskiy Diary. The case is docketed under Case No. A47-15563/05-14GK. The Temporary Insolvency Manager is: V. Fedorov Post User Box 41 Syzran 446001 Samara Region Russia The Arbitration Court of Orenburg Region is located at: 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: OJSC Agro Complex Sorochinskiy Diary Baklanovka Sorochinskiy Region Orenburg Region Russia TAGANKA CAR: Moody's Rates US54.8-Mln Class C Notes at (P)Ba2 ------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to the following three classes of asset-backed notes issued by Taganka Car Loan Finance PLC: --(P)Baa1 to the US$270.9 million Class A Senior Asset Backed Floating Rate Notes due 2013; --(P)Baa2 to the USD77.4 million Class B Mezzanine Asset Backed Floating Rate Notes due 2013; and --(P)Ba2 to the US$54.8 million Class C Junior Asset Backed Floating Rate Notes due 2013. This is the second securitization of auto loans originated in Russia and the first securitization transaction for MDM Bank. The securitized assets are US dollar and Rouble-denominated fixed rate auto loans to customers domiciled in Russia originated by MDM Bank since 2002. This is a static amortizing transaction and collections on the portfolio will be swept daily from the Collection Rouble Account or the Collection Dollar Account to an Issuer Rouble Account or Issuer Dollar Account. The main sources of credit enhancement are the subordination of the Class B and Class C Notes, overcollateralization provided by the subordinated loan, reserve fund and excess spread. During its analysis, Moody's noted that the structure benefits from a notification trigger that is set to occur upon the withdrawal or the downgrade of the long-term rating of MDM Bank below Ba3. In addition, Russian Standard Bank is appointed as Back-up Servicer at closing and will replace MDM Bank as servicer in the event of a Servicer Termination Event. There is furthermore a contingency reserve of USD750,000 which will be funded upon a loss of Ba2 by MDM Bank which will facilitate the transfer of servicing duties and protect the assets of the Issuer in case a Servicer Termination Event. Finally, credit loss arising from commingling has been mitigated in this transaction by way of a commingling loss liquidity facility provided by a suitable entity with a long-term rating of Aaa and the notification and payment redirection trigger set at loss of Ba3 by MDM Bank. There remains, however, uncertainties in respect of the legal environment in Russia given that the transaction relies on key legal concepts which may not have been tested in judicial proceedings or in practice. Given the uncertainties, the ratings of the Notes are likely to be affected in case the creditworthiness of MDM Bank should deteriorate. In addition, while this is the first securitization of domestic assets in Russia that benefits from a balance guaranteed swap, the swap will terminate on the Scheduled Maturity Date in 2011, thereby exposing cashflows arising thereafter to significant foreign exchange volatility. The swap will also terminate upon the occurrence of any event, which has the effect of preventing the transfer of foreign currencies from Russia to a jurisdiction outside of Russia or the conversion of Roubles into certain foreign currencies. Furthermore, as approximately 33% of the loans are denominated in US Dollars and many borrowers' income are at least in part denominated in Roubles, the cashflows arising from the US dollar-denominated auto loan contracts are exposed to the risk that the Russian government may redenominated foreign currency assets into Roubles in case of a financial crisis. Finally, Moody's notes that the aggressive growth of MDM Bank's auto loan portfolio has resulted in an increasing trend in losses. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings represent only Moody's preliminary credit opinions only. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign definitive ratings to the Notes. A definitive rating may differ from a prospective rating. A rating is not a recommendation to purchase, sell or invest in any securities. The ratings address the expected loss posed to investors by the legal final maturity. As there is no liquidity cover in the transaction in respect of the Class C Notes, in Moody's opinion the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date in respect of the Class A Notes and Class B Notes and allows for the ultimate payment of interest and principal at par on or before the rated final legal maturity date in respect of the Class C Notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. TENLIN: Bankruptcy Hearing Slated for Feb. 6 -------------------------------------------- The Arbitration Court of Moscow will convene at 11:00 a.m. on Feb. 6 to hear the bankruptcy supervision procedure on OJSC Tenlin. The case is docketed under Case No. A40-37967/06-74-700B. The Temporary Insolvency Manager is: R. Lapidus Room 5 Gogolya Str. 12 236008 Kaliningrad Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Tenlin Building 3 Dolgorukovskaya Str. 40 127030 Moscow Region Russia UNIVERSAL HARDWARE: S. Sorokin to Manage Insolvency Assets ---------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Sorokin as Insolvency Manager for CJSC Universal Hardware Plant (TIN 7718119541). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-24849/06-103-362B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Universal Hardware Plant 1st Zborovskiy Per. 11 107076 Moscow Region Russia URALSVYAZINFORM OJSC: Standard & Poor's Raises Rating to BB- ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Uralsvyazinform (OJSC), the incumbent fixed-line operator in the Urals region of Russia, to 'BB-' from 'B+', reflecting the company's improving business risk profile. The outlook is stable. "The upgrade reflects the company's improving business position as the result of strong and rising market share in key segments; leading network quality; and expanding business diversification," said Standard & Poor's credit analyst Lorenzo Sliusarev. "This is in addition to the continuing positive dynamics in Russia's telecoms industry, helped by sound economic, income, and business growth." Importantly, the company has benefited from the steadily improving regulatory framework and capital market environment in Russia. Furthermore, USI's franchise area is among the most economically robust in Russia. The ratings remain constrained, however, by the company's aggressive exposure to financial risk, which has been increasing following extensive capital investments and debt accumulation. The ratings are also constrained by USI's limited liquidity, with notable short-term refinancing needs, and need to continue reducing costs and enhance operating profitability. This is in addition to possible risks associated with continuing industry and regulatory reform. Standard & Poor's expects USI's improved business position, together with continuing growth in revenue and cash flow generation, will allow the company to stabilize and gradually improve its heightened financial risk exposure. Accordingly, Standard & Poor's expects the company to begin to reduce its capital spending and focus on profitability and cash flow enhancements, while reducing debt to more moderate levels. Any potential inability of the company to reverse its currently high financial risk and improve liquidity, caused by, or parallel to, deterioration in profitability and key market positions would place pressure on the rating. Given the current aggressive financial profile, the rating agency does not see near-term upside potential for the rating. A rapid improvement in financial measures, however, could in turn release this critical rating constraint. VOLGATELECOM: Improved Business Spurs S&P to Raise Rating to BB- ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on VolgaTelecom (OJSC), the incumbent fixed-line telecommunications operator in the Volga region of Russia, to 'BB-' from 'B+'. The outlook is stable. At the same time, Standard & Poor's raised its long-term Russia national scale rating on VolgaTelecom to 'ruAA-' from 'ruA+'. "The upgrade reflects VolgaTelecom's improving business profile," said Standard & Poor's credit analyst Lorenzo Sliusarev. "This is marked by its dominant market share in key segments; enhanced network quality; steadily improving regulatory and industry dynamics; and gradually increasing revenue diversification." Strengthening liquidity in a context of positive capital markets and lending terms in Russia further benefits VolgaTelecom's credit profile. Although the company's financial profile is expected to moderately weaken in the near term due to increased investments, it should remain manageable and is expected to stabilize and begin to improve in the medium term. The ratings remain constrained, however, by: -- uncertainties regarding further industry restructuring; -- VolgaTelecom's reduced financial flexibility due to increased capital investments and negative free cash flows; and -- the relatively slow growth of the company's new services, limited by the moderate economic and demand characteristics of its franchise area. "Standard & Poor's expects that VolgaTelecom will continue to hold a dominant market position in its key business segments while focusing on improving efficiency and growing revenues and cash flows," Mr. Sliusarev added. The company's plans for increased capital spending are expected to be managed in a prudent manner without causing a material increase in financial risk. In the medium term, Standard & Poor's expects VolgaTelecom to gradually improve its financial profile. Should the company's business performance strengthen, along with improving liquidity and continuing positive industry dynamics, the ratings could be raised again. Conversely, a weakening of VolgaTelecom's market position, a reduction in profitability, or a substantial increase in financial leverage would put pressure on its credit profile. YUKOS OIL: Surgutneftegaz Eyes Petrochemical Unit ------------------------------------------------- Surgutneftegaz may buy a Siberian petrochemical asset from bankrupt OAO Yukos Oil Co., as well as build a new plant in Russia, RIA Novosti reports. "We do not rule out buying ANKhK, or building a new plant in Russia," Sergei Fyodorov, Surgutneftegaz's deputy chief executive, said. Mr. Fyodorov also revealed that the company was in talks over the construction of an oil refinery at the terminus of the Eastern Siberia-Pacific Ocean pipeline, the Russian news and information service relates. According to RIA Novosti, Mr. Fyodorov also said that Surgutneftegaz intends to: -- increase its investments by 40% to RUR88 billion, with a RUR63 billion investment planned for 2006; and -- bring oil production levels to 67.1 million metric tons in 2007, 5 percent above its 2006 target. From January to August 2006, Surgutneftegaz reported a 3.4% year-on-year increase in crude output to 43.59 million metric tons (1.33 mln bbl/d), and a 1.6% increase in the production of gas, to 9.69 billion cubic meters. About Surgutneftegaz Headquartered in Surgut, Russia, Surgutneftegaz OAO -- http://www.surgutneftegas.ru/-- is an oil and gas company, which is involved in gas and oil field construction and development, gas and oil production and marketing, as well as oil and petrochemical product manufacture and marketing. The Company builds up to 90 horizontal wells per year and has an annual production of over 10 billion cubic meters of gas. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. ZYRYANSKIY BUTTER-FACTORY: V. Chayka to Manage Assets ----------------------------------------------------- The Arbitration Court of Tomsk Region appointed V. Chayka as Insolvency Manager for OJSC Zyryanskiy Butter-Factory. He can be reached at: V. Chayka Lenina Str. 124 Zyryanskoye Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-17022/05. The Debtor can be reached at: OJSC Zyryanskiy Butter-Factory Lenina Str. 124 Zyryanskoye Tomsk Region Russia * S&P Lifts Krasnodar Krai's Rating to BB- on Economic Growth ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term issuer credit ratings on the southern Russian region of Krasnodar Krai to 'BB-' from 'B+'. At the same time, the Russian national scale rating on the region was raised to 'ruAA-' from 'ruA+'. The outlook is stable. "The rating actions reflect economic and revenue growth in Krasnodar and an expected federal infrastructure-financing program," said Standard & Poor's credit analyst Irina Pilman. The ratings are constrained by: -- Krasnodar's low financial flexibility, -- high infrastructure needs, and -- relatively low wealth. Ratings are supported, however, by: -- the region's well-diversified economy and tax base, -- good financial performance, and -- low debt. Krasnodar is Russia's third most populous region, located in the southern part of the Russian Federation. The krai's economic specializations are agriculture and the food industry. In addition, Krasnodar contains Russia's only stretch of Black Sea coastline. As a result, Russia's most important Black Sea ports and resort areas are located in the region. "We expect that Krasnodar Krai's economy and revenues will continue to grow, and the debt burden will remain moderate," said Ms. Pilman. Increasing transparency of the economy and improvements in debt management would be key for positive credit movement in the next two to three years, barring which, the rating is likely to remain stable in the medium term. ========= S P A I N ========= CHESAPEAKE CORP: 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 for the North American Forest Products sector, the rating agency confirmed its B1 Corporate Family Rating for Chesapeake Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these three bond issues: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------ ------ ------ ------- US$50 million Industrial Revenue Bonds due 2019 B2 B1 LGD3 48% US$124 million 10.375% Subordinated Notes due 2011 B3 B3 LGD5 87% US$127.9 million 7.0% Subordinated Notes due 2014 B3 B3 LGD5 87% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Richmond, Virginia, Chesapeake Corporation -- http://cskcorp.com/-- is an international supplier of specialty paperboard and plastic packaging. The company has manufacturing operations in Belgium, the United Kingdom, France, Germany, Netherlands, Northern Ireland, Republic of Ireland, Scotland, Spain, and the United States. GAT FTGENCAT: Moody's Junks EUR9.5-Million Series E Notes --------------------------------------------------------- Moody's Investors Service assigned these ratings to the debt to be issued by Spanish securitization fund GAT FTGENCAT 2006 FONDO DE TITULIZACION DE ACTIVOS: -- EUR170.3 million Series A1 notes: Aaa; -- EUR239.1 million Series A2(G) notes: Aaa; -- EUR5.1 million Series B notes: Aa2; -- EUR12.3 million Series C notes: A1; -- EUR13.2 million Series D notes: Baa3; and -- EUR9.5 million Series E notes: Ca. The ratings address the expected loss posed to investors by the legal final maturity in June 2039. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Series A1, A2(G), B, C and D at par on or before the rated final legal maturity date, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Series E. GAT FTGENCAT 2006, FTA is a securitization fund created with the aim of purchasing a pool of loans granted by Caixa d'Estalvis de Catalunya to Spanish corporates and self-employed individuals based in Catalonia, in compliance with the conditions required by the FTGENCAT program in order to qualify for the Generalitat de Catalunya guarantee. Strong features within this deal include among others: -- a swap agreement guaranteeing an excess spread of 0.65% and covering the servicing fee; -- a 2.16% reserve fund to cover potential shortfalls in interest or principal; -- a 12-month artificial write-off mechanism; -- the guarantee of the regional government of Catalonia (Aa3) for the Series A2(G) notes; and -- the fact that the management company will elect the loans from the provisional pool that will result in the least concentrated securitized pool. Weaker features include: -- limited historical default and recovery information received from the originator; -- pro-rata amortization of the notes; -- geographical concentration in the region of Catalonia; and -- the negative impact of the interest deferral trigger on the subordinated series. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets comprised, as of 28 August 2006, a portfolio of 6,922 loans granted to 6,188 borrowers, which are Spanish enterprises or self-employed individuals based in Catalonia. The loans have been originated between 1993 and June 2006, with a weighted average seasoning of 1.75 years and a weighted average remaining life of 8.1 years. The weighted average interest rate is 4.08%, with the highest portion of the pool linked to floating reference rates (93.37%). Approximately 55% of the portfolio is composed of loans secured by a mortgage guarantee over different type of properties, although, given the particular conditions of the guarantees, Moody's has granted benefit accordingly. Around 30% of the portfolio is concentrated in the buildings and real estate sector according to Moody's industry classification. At closing, there will be no loans more than 30 days in arrears. Moody's based the ratings primarily on: -- an evaluation of the underlying portfolio of loans; -- historical performance information; -- the swap agreement hedging the interest rate risk; -- the credit enhancement provided through the GIC account, the guaranteed excess spread, the reserve fund and the subordination of the notes; and -- the legal and structural integrity of the transaction. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts -------------------------------------------------------- PSA Peugeot Citroen has implemented an action plan to increase its efficiency. The plan comprises a series of measures to be applied immediately with the goal of controlling costs, R&D efficiency, redefining product plan priorities and identifying new markets. The measures have been taken following a detailed assessment of the Group's situation. Several positive developments have been noted, including the growth in business outside Europe, the increase in cooperation agreements, the performance of the manufacturing base, the sharp improvement in vehicle quality and the successful launch of the Peugeot 207. However, the Group's declining market share in Europe-due to the high average age of its model lineups, the slow start-up for such innovative models as the Peugeot 1007, and the increase in competition- is a genuine source of concern. Against this mixed backdrop, Jean-Martin Folz, Chairman of PSA Peugeot Citroen, has unveiled a series of measures covering these main points: -- Taking Immediate Steps to Control Overheads intended to generate savings of EUR125 million in second- half 2006, these initiatives include a hiring freeze and measures to contain payroll costs and other overheads -- Adjusting the Production Cost Base PSA Peugeot Citroen is continuing to adjust its manufacturing teams in France and Spain by reducing the number of temporary employees and fixed-term contracts and by not replacing departing employees. In addition, the plant in Ryton (U.K.) is gradually being closed. As a result, the workforce in the Group's European plants will have been reduced by 10,000 in one year. The decision not to build a second production unit at the Trnava plant will lead to a EUR200 million reduction in the previously announced EUR350-million capital spending program. Lastly, the development of synergies between neighboring plants producing vehicles on the same platform is already underway between Mulhouse and Sochaux and will be extended to Poissy and Aulnay. The goal is to boost capacity utilization in the European plants (as measured by the Harbour index) back above 100% in 2007 and to around 110% in three years. -- Scaling Back the Capital Expenditure Plan PSA Peugeot Citroen's annual capital expenditure budget of roughly EUR3 billion will be reduced considerably to around EUR2.5 billion for the coming period, without however impacting the product plan. -- Enhancing R&D Efficiency A plan to make the automobile development process more efficient has been launched, with the goal of reducing R&D costs by 15% for vehicles just entering the development process. Because the total R&D budget will stay the same over the next three years, in euros, PSA Peugeot Citroen will be able to develop more new models more quickly. -- Redefining Product Plan Priorities The Group will renew core-range models in Europe more frequently to keep the average age low and extend its vehicle lineup to new market segments. In addition to renewing existing product ranges, by 2009 PSA Peugeot Citroen will introduce six new body styles in segments in which it currently has no models. Outside Europe, an assertive product strategy based on a wide range of models tailored to local customer expectations has been launched. Between 2006 and 2009, eleven rollouts are planned for China and six for the Mercosur countries. -- Pursuing New Opportunities Outside Europe With the signature of a memorandum of understanding to study a possible cooperation with Proton in Malaysia and the search for local production capacity in Russia, the Group is seeking to establish a presence in new growth markets while limiting its investments. Headquartered in Paris, France, PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/-- manufactures passenger cars and light commercial vehicles. The Company produces vehicles under the Peugeot and Citroen brands. In addition to car manufacturing, PSA Peugeot Citroen S.A. runs several divisions, including Banque PSA Finance, which federates the Company's finance companies; Faurecia, which manufactures automotive equipment, including car seats, exhaust systems and other components; Gefco, which furnishes transportation and logistics services; Peugeot Motocycles, which manufactures scooters and motorcycles; Peugeot Citroen Moteurs (PCM), which sells engines and gearboxes to customers outside the Company, and Process Conception Ingenierie (PCI), which designs and builds industrial equipment for the Company and other global carmakers. In 2005, PSA Peugeot Citroen S.A. sold 3.39 million vehicles in 150 countries worldwide. SOL MELIA: Fitch Assigns BB Rating on EUR100 Million Shares ----------------------------------------------------------- Fitch Ratings assigned Sol Melia Finance NV's EUR100 million preference shares a BB rating and classified it as a Class A security with no equity credit. Simultaneously, Fitch has affirmed Sol Melia's Issuer Default rating at BB+ and its Short- term rating at B. The IDR Outlook remains Stable. The senior unsecured rating has been affirmed at BB+. The BB rating of the preference shares issued under an irrevocable, subordinated guarantee from Sol Melia SA is based on Fitch's established notching and Recovery Rating methodology. The equity credit follows the implementation of Fitch's revised hybrid methodology, following a six-week market consultation period. The hybrid security is subordinated and ranks senior only to ordinary shares. However, the mandatory deferral mechanism is highly unlikely to come into effect, since distributable reserves have to be below the preference share dividend and in parallel the company is committed to maintain EUR150 million of distributable reserves. In particular, deferral is conditional on the company not having made distributable profits in the previous fiscal year. As a consequence the security does not meet both of Fitch's 'guiding principles' under its revised methodology and does not qualify for any equity credit. =========== S W E D E N =========== GRAPHIC PACKAGING: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Forest Products sector, the rating agency confirmed its B1 Corporate Family Rating for Graphic Packaging International Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------ ------ ------ ------- US$325 million Revolving Credit Facility B1 Ba2 LGD2 27% US$1,256 million Secured Term Loan B1 Ba2 LGD2 27% US$425 million 8.5% Unsecured Notes B2 B2 LGD4 68% US$425 million 9.5% Subordinated Notes B3 B3 LGD6 93% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Marietta, Georgia, Graphic Packaging International, Inc. -- http://www.graphicpkg.com/-- is a paperboard and integrated paperboard solutions provider to beverage and consumer products multinationals. Graphic Packaging operates four paper mills, 24 converting facilities and four machinery manufacturing facilities worldwide including Sweden, Spain, and Denmark. The company employs approximately 7,800 people and holds rights to more than 1,700 US and foreign patents with more than 475 patent applications currently pending for printing, packaging and converting processes. ===================== S W I T Z E R L A N D ===================== NOBLE GROUP: Strong Finances Spur Moody's to Affirm Ba1 Rating -------------------------------------------------------------- Moody's Investors Service affirmed the Ba1 corporate family rating and senior unsecured bond rating of Noble Group Ltd. with a stable outlook. Noble's Ba1 ratings reflect the company's financial strengths, including its healthy liquid balance sheet, a strong management team with extensive industry experience, business diversity and leading market position - a position, which has benefited from an increasing demand for commodities in Asia. However, the rating also recognizes the management's entrepreneurial culture and strong appetite for growth. As a result, the rating is constrained by the company's shorter track record at its current scale and complexity. It is also been affected by concerns surrounding the company's ability to manage such growth and deliver sustainable cash flows and profits. Noble's strategy is to further integrate and add value along the supply chain, including making selected investments to enhance its competitive position. While Noble commands strong positions in certain niche markets, the company is smaller than its peers. In a global commodity market, larger players are expected to command stronger competitive positions, better sourcing channels and customer relationships. These larger peers -- such as Cargill Incorporated, Archer-Daniels-Midland Company and Bunge Ltd. - have demonstrated over a longer period of time an ability both to manage the challenges of running a commodity supply chain business and at a larger scale. As the company has experienced high-growth over the last few years, Moody's had previously expressed concern about the effectiveness of the company's management system and risk control practices and its ability to keep pace with this growth. In the last twelve months Moody's has noticed a strengthening of Noble's overall risk management framework, systems and processes, which is encouraging. Nevertheless, execution in this area remains a key focus for the rating. Noble's financial performance, including profitability and gearing, in 1HFY06 showed a weakening trend. In particular annualized Retained Cash Flow (RCF)/Adjusted Debt (defined as total balance sheet debt less 15% of total assets, which Moody's assumes will be held as cash) fell to around 10% which is lower than anticipated. This is, however, mitigated by the company's strong liquidity position and the discipline it has exercised in its investment and financial practices. Actual cash holdings accounted for about 24% of total assets as of June 2006 (which would reflect a RCF/Net Debt ratio of 13.8%). This discipline has enabled Noble to maintain its target financial ratios of Debt/Cap of 50-60%, EBIT/Interest of 3-4x and minimum cash holdings of 15-20% of total assets. Nevertheless, if improvement in financial performance is not seen in 2HFY06, downward rating pressure could grow. Moody's is likely to consider a rating downgrade if -- Noble fails to sustain its profitability and credit profile including RCF/Adjusted Debt consistently below 15%; -- it adopts an aggressive acquisition/investment plan for new businesses thereby increasing its overall risk profile; -- there is any weakening in its balance sheet liquidity, with its cash balance falling below 15% of total assets; and/or 4) any incurrence of large trading or credit losses. The rating would experience upward pressure if Noble establishes a track record and demonstrates its ability to: -- maintain its profitability and cash generating ability, especially through the pricing cycles of its various business lines; -- adhere to investment and financial discipline while pursuing its growth strategy, such that RCF/Adjusted Debt exceeds 25% on a sustainable basis; and -- manage the risks inherent in its business at its current scale and as it continues to grow. Maintenance of its current risk profile and balance sheet liquidity would also be important factors. Noble Group Ltd., headquartered in Hong Kong and listed on the Singapore Stock Exchange, is mainly engaged in the sourcing and distribution of a wide range of commodity products in agriculture, energy and metals as well as the logistics management business. It has over 70 offices in 42 countries. =========== T U R K E Y =========== EDISON MISSION: Fitch Lifts Issuer Default Rating to BB- -------------------------------------------------------- Fitch Ratings upgraded and removed from Rating Watch Positive the ratings for Mission Energy Holding Company and Edison Mission Energy: MEHC -- Issuer Default Rating to BB- from B. EME -- Issuer Default Rating to BB- from B. Midwest Generation, LLC -- Issuer Default Rating to BB from B. Fitch originally placed MEHC from Rating Watch Positive on March 10. The Rating Outlook is Stable. Approximately US$6.7 billion of debt is affected by the rating action. As a consequence of the upgrade of MEHC and its subsidiaries' IDRs to the BB category from B, Fitch will no longer publish recovery ratings for MEHC, EME and MWG. Fitch notes that recovery analysis is implicitly reflected in the issuer's individual obligation ratings. The IDR upgrades reflect the beneficial effect of lower financing costs and improved liquidity and financial flexibility as a result of MEHC's corporate restructuring and strong cash flow from MEHC's low cost coal-fired generation fleet. Management, under the restructuring, used proceeds from the sale of EME's international assets in the fourth quarter of 2004 and available cash to repay maturing Edison Mission Midwest Holding debt and bridge loan to EME's international asset sale, terminate the Collins leasehold and facilitate a significant capital injection to MWG. EME recently refinanced US$1 billion of notes at favorable terms, extending maturities from 2008 (US$400 million) and 2011 (US$600 million) to 2013 (US$500 million) and 2016 (US$500 million), respectively. Fitch expects that MEHC will utilize a portion of the US$1.6 billion of cash and cash equivalents and short-term investments on its consolidated balance sheet as of June 30, 2006 to redeem its US$800 million 13.5% notes due November 2008. Additional liquidity is provided by a US$500 million secured credit facility at EME, which was upsized from US$98 million. MEHC subsidiary MWG also has a US$500 million working capital facility in place to provide liquidity to support collateral needs associated with power sales. Nonetheless, MEHC's debt burden remains high and its coverage ratios and debt measures weak. The increased MEHC, EME and MWG ratings also reflect more favorable post-2004 wholesale power price trends from an investor point-of-view and relatively low-cost, coal-fired generating capacity at MEHC and its indirect operating subsidiaries Midwest Generation LLC and HC. The ratings assume power prices will remain in the mid-US$40 per megawatt level or higher on an annual basis in the near-to- intermediate term, on average. While lower sustained near-to- intermediate term power prices cannot be ruled out, Fitch believes that recent, higher power prices and resulting improvement to MEHC cash flows are more likely to persist allowing further debt reduction and improving credit metrics over time. The primary concern for MEHC and its subsidiaries is a sharp and sustained decline in natural gas and wholesale energy prices, which would likely end the companies' financial recovery and lead to future downgrades. In addition to ongoing exposure to commodity price volatility, prospective federal and/or state environmental standards could result in significantly higher capital and operating costs, bringing incremental pressure to bear on MEHC and its subsidiaries' cash flows and creditworthiness. MEHC participated in the recently completed reverse auction conducted in Illinois for default power supply. While MEHC has been named among the successful bidders in the auction, details regarding the auction to supply power for 17-, 29- and 41-month periods have not been released as of this writing. Fitch notes that the Illinois reverse auction resulted in power prices in excess of US$60 per megawatt hour. Positively, MEHC recently announced that it entered into a 500 megawatt, three-year bilateral contract to supply on-peak power that requires no collateral posting. As of June 26, 2006, MEHC subsidiaries MWG and HC have hedged approximately 62% and 56% of total expected generation for the remainder of 2006 and calendar year-2007, respectively. The average hedged price for MWG was US$48 per megawatt hour for MWG for both the remainder of 2006 and full-year 2007 and US$54 per megawatt hour for HC for the remainder of 2006 and US$64 for calendar year 2007. After the Illinois auction, the hedge ratio and average price is likely to be higher for MWG. In addition, more than 95% of MWG and HC's coal requirements have been hedged through the end of 2007. MEHC is a wholly-owned intermediate holding company subsidiary of Edison International. Formed in July 2001, MEHC's sole asset is EME common stock. EME, through its operating subsidiaries, leases, owns, develops, acquires, operates and sells the output of independent power facilities located primarily in the U.S. EME's also owns a 144 megawatt (80%) interest in a natural gas- fired plant in Doga, Turkey. Including certain wind projects currently under construction, EME owns or is developing more than 9,400 megawatts of generating capacity in total. Of that amount 9,295 mWs are currently in commercial operation, of which 7,497 mWs (81%) is coal-fired generation located in Illinois and Pennsylvania. MWG and HC are indirect operating subsidiaries of EME that own and control through leaseholds 5,613 and 1,884 mWs of coal-fired generation, respectively. Fitch has upgraded and removed these ratings from Rating Watch Positive: MEHC -- Issuer Default Rating to BB- from B; and -- Senior secured notes to BB- from B-. EME -- Issuer Default Rating to BB- from B; and -- Senior unsecured notes to BB- from B; MWG -- Issuer Default Rating to BB from B; -- First priority term loan to BBB- from BB; and -- Second priority secured notes to BB+ from B+. ============= U K R A I N E ============= AGES: Court Names Volodimir Ilkovskij as Insolvency Manager ----------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Volodimir Ilkovskij as Liquidator/Insolvency Manager for LLC Ages (code EDRPOU 31857664). The Court commenced bankruptcy proceedings against the company after finding the company insolvent on Aug. 10. The case is docketed under Case No. 19/135/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Ages Chernyahivskij Str. 34 Rozivka Yakimivka District 72514 Zapopizhya Region Ukraine ARCHITECTURAL ENGINEERING: Court Names Tax Agency as Liquidator --------------------------------------------------------------- The Economic Court of Kyiv Region appointed the State Tax Inspection of Desnyanskij District of Kyiv Region as Liquidator for LLC Architectural-Engineering Association (code EDRPOU 32528157). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 13. The case is docketed under Case No. 15/427-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Architectural-Engineering Association Str. 44-a/10 02222 Kyiv Region Ukraine ESST LTD: Zaporizhya Court Names S. Persuk as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Mr. S. Persuk as Liquidator/Insolvency Manager for LLC Esst Ltd. The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 16. The case is docketed under Case No. 19/78-21/291. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Esst Ltd. Virobnicha Str. 15 69014 Zaporizhya Region Ukraine KOM-TREK: Kyiv Court Names District Tax Agency as Liquidator ------------------------------------------------------------ The Economic Court of Kyiv Region appointed the State Tax Inspection of Desnyanskij District of Kyiv Region for LLC Kom- Trek (code EDRPOU 32106010). The Court commenced bankruptcy proceedings against the company after finding the company insolvent on July 13. The case is docketed under Case No. 15/429-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Kom-Trek Magnitogorska Str. 1/308 02094 Kyiv Region Ukraine KONTUR PLUS: Court Names Lubomir Cherevatij as Liquidator --------------------------------------------------------- The Economic Court of Volinska Region appointed Lubomir Cherevatij as Liquidator/Insolvency Manager for LLC Kontur Plus (code EDRPOU 32501507). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 21. The case is docketed under Case No. 8/67-B. The Economic Court of Volinska Region is located at: Voli Avenue 54-a 43010 Lutsk Volinska Region Ukraine The Debtor can be reached at: LLC Kontur Plus Karbishev Str. 3 Lutsk Volinska Region Ukraine NAFTOGAZ UKRAINY: Prime Minister Yanukovych Foresees Bankruptcy --------------------------------------------------------------- Ukrainian Prime Minister Viktor Yanukovych warned that NJSC Naftogaz Ukrainy is on the verge of bankruptcy due to bad management, The Associated Press reports. "As a result of extraordinary financial obligations and a year- and-a-half of criminal management, this company appears to be on the verge of bankruptcy," Mr. Yanukovych was quoted by the Associated Press as saying. Mr. Yanukovych also warned that the state-owned Naftogaz, which supplies Ukraine's residential and industrial consumers with gas, could lose as much as US$1.5 billion this year. As reported in TCR-Europe on Sept. 22, Naftogaz posted UAH1.842 billion (US$368 million) in losses for 2005. 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. Naftogaz 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. Gazprom is demanding that Ukraine's Naftogaz pay between US$135 and US$140 per 1,000 cubic meters of gas after the Russian gas company sealed a deal buying 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. Naftogaz has offered 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-. NIOL: Kyiv Region Court Names V. Zaharchuk as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. V. Zaharchuk as Liquidator/Insolvency Manager for LLC NIOL (code EDRPOU 23519006). The Court commenced bankruptcy proceedings against the company after finding the company insolvent on July 26. The case is docketed under Case No. 24/181-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Niol Vernadskij Str. 36 Kyiv Region Ukraine PREMIER-ORBI: Court Names I. Yasnogor as Insolvency Manager ----------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Mr. I. Yasnogor as Liquidator/Insolvency Manager for LLC Premier-Orbi (code EDRPOU 31251813). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 27. The case is docketed under Case No. B 29/5/04. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Premier-Orbi Bolyatko Str. 34 49000 Dnipropetrovsk Region Ukraine REMPROMBUTSERVICE: Court Names District Tax Agency as Liquidator ---------------------------------------------------------------- The Economic Court of Kyiv Region appointed the State Tax Inspection of Desnyanskij District of Kyiv Region for LLC Remprombutservice (code EDRPOU 30977990). The Court commenced bankruptcy proceedings against the company after finding the company insolvent on July 13. The case is docketed under Case No. 15/428-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Remprombutservice Milutenko Str. 23-a 02166 Kyiv Region Ukraine SAMBOR: Kyiv Region Court Starts Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on Agricultural Enterprise Sambor (code EDRPOU 30229834) on June 5. The case is docketed under Case No. 170/14 b-06. The Temporary Insolvency Manager is: U. Biluk Ahmatova Str. 13B/67 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: Agricultural Enterprise Sambor Lisovichi Tarashanskij District 09513 Kyiv Region Ukraine SELSA: Kyiv Court Names District Tax Agency as Liquidator --------------------------------------------------------- The Economic Court of Kyiv Region appointed the State Tax Inspection of Desnyanskij District of Kyiv Region for LLC Selsa (code EDRPOU 32105588). The Court commenced bankruptcy proceedings against the company after finding the company insolvent on July 13. The case is docketed under Case No. 15/433-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Selsa Magnitogorska Str. 1/308 02094 Kyiv Region Ukraine SUMIFARM: Sumi Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Economic Court of Sumi Region commenced bankruptcy supervision procedure on LLC Scientific-Production Enterprise Sumifarm (code EDRPOU 23995920) on Aug. 10. The case is docketed under Case No. 6/97-06. The Temporary Insolvency Manager is: Yevgen Kornilov 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: LLC Scientific-Production Enterprise Sumifarm Bilopilskij shlyah Str. 17 40000 Sumi Region Ukraine TEHNOGEM: Court Names Yevgenij Grib as Insolvency Manager --------------------------------------------------------- The Economic Court of Odessa Region appointed Yevgenij Grib as Liquidator/Insolvency Manager for JSCCT Tehnogem (code EDRPOU 21003008). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 22. The case is docketed under Case No. 7/126-006-4784. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: JSCCT Tehnogem Mayakovskij Str. 63 Bilgorod-Dnistrovskij 67701 Odessa Region Ukraine ZUGRESENERGOBUD: Court Names S. Atamanenko as Liquidator -------------------------------------------------------- The Economic Court of Donetsk Region appointed Mr. S. Atamanenko as Liquidator/Insolvency Manager for Zugresenergobud (code EDRPOU 00119770). The Court commenced bankruptcy proceedings against the company after finding the company insolvent. The case is docketed under Case No. 15/128. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: Zugresenergobud Budmajdanchik Zugres 86783 Donetsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANCED FLUID: Faces GBP12.16-Mln Fine Over Copper Cartel ---------------------------------------------------------- The European Commission has imposed a EUR314.7 million penalty against 30 companies for running a copper fittings cartel between 1988 and 2004, BBC News reports. Included in the list is UK's Advanced Fluid Connections, which received a GBP12.16 million fine for price-fixing. According to the report, the commission has increased the fines for AFC for continuing to operate the cartel after its investigation had begun. "We will not only punish firms severely for cartel behavior, but also increase the fines for flagrantly continuing after a Commission dawn raid and for providing wrong or misleading information," said Competition Commissioner Neelie Kroes. The Commission accused the cartel for influencing prices for copper fittings used with tubes for plumbing, heating and sanitation. About the Company Advanced Fluid Connections Plc (fka Oystertec PLC) is involved in commercially exploiting a range of products into the plumbing, heating, hydraulics, automotive and other global engineering industries. The Group also develops and markets fluid connectors. The Group's products include Oyster converter, hydraulic push-fit and push-fit pipe systems. The company disclosed GBP105.9 million in 2004 sales. Advanced Fluid entered into administrative receivership on March 27. Subsequently, Burdale Financial Ltd appointed Mark Granville Firmin and Myles Antony Halley of KPMG LLP as the company's joint administrative receivers. AGCO CORP: 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 for the Automotive and Equipment sector this week, the rating agency confirmed its Ba2 Corporate Family Rating for AGCO Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 1.750% Conv. Sr. Sub. Notes due 2033 B1 B1 LGD5 89% 6.875% Sr. Sub. Notes due 2014 B1 B1 LGD5 89% Sr. Unsec. Shelf Ba3 Ba3 LGD5 81% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). AGCO Corp. is a global manufacturer and distributor of agricultural equipment and related replacement parts. The Co. offers a full line of products under multiple brands through one of the largest global distribution networks in the industry, including more than 3,900 independent dealers and distributors in more than 140 countries including Denmark, Finland, Germany, Italy, France, Spain and the United Kingdom. ALBION SPRING: Bank of Scotland Brings In PwC as Receivers ---------------------------------------------------------- The Governor and the Company of the Bank of Scotland appointed Mark Hopkins and Robert Hunt of PricewaterhouseCoopers LLP joint administrative receivers of Albion Spring Company Limited (Company Number 02833780) on Sept. 12. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Headquartered in West Bromwich, United Kingdom, Albion Spring Company Limited manufactures springs, clips and pressings for automotive, medical, white goods and pharmaceutical sectors. ALLIED HOME: Appoints Joint Liquidators from CBA ------------------------------------------------ Mark Grahame Tailby and Neil Charles Money of CBA were appointed Joint Liquidators of Allied Home Interiors (U.K.) Limited on Sept. 5 for the creditors' voluntary winding-up procedure. Headquartered in Leicester, U.K., Allied Home Interiors (U.K.) Limited is a kitchen planner and furnisher. ALLSCREWS LIMITED: Claims Filing Period Ends Oct. 11 ---------------------------------------------------- Creditors of Allscrews Limited have until Oct. 11 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Elliot Harry Green of Oury Clark at: Elliot Harry Green Oury Clark Herschel House 58 Herschel Street Slough Berkshire SL1 1HD United Kingdom Headquartered in Slough, U.K., Allscrews Limited wholesales nuts, bolts, and specialist machine parts. AMERICAN AXLE: 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 for the U.S. automotive sector, the rating agency confirmed its Ba3 Corporate Family Rating for American Axle & Manufacturing, Inc., and its American Axle & Manufacturing Holdings Inc. subsidiary. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: American Axle & Manufacturing, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- unsecured term loan Ba3 Ba3 LGD4 57% senior unsecured notes Ba3 Ba3 LGD4 57% Issuer: American Axle & Manufacturing Holdings, Inc. (Subsidiary) Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- senior convertible notes Ba3 Ba3 LGD4 57% Moody's explains that 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 will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About American Axle American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Poland, Scotland and South Korea. ANDREWS BUILDERS: Hires Liquidator from Maidment Judd ----------------------------------------------------- Anthony David Kent of Maidment Judd was appointed Liquidator of Andrews Builders Limited on Sept. 13 for the creditors' voluntary winding-up procedure. The company can be reached at: Andrews Builders Limited Clayton House 7 Vaughan Road Harpenden Hertfordshire AL5 4EF United Kingdom Tel: 01582 765 777 ARMSTRONG SECURITY: Joint Liquidators Take Over Operations ---------------------------------------------------------- John W. Lewis and Terry C. Evans of J W Lewis Insolvency Services Ltd. were appointed Joint Liquidators of Armstrong Security (South West) Ltd. on Aug. 16 on for the creditors' voluntary winding-up procedure. The company can be reached at: Armstrong Security (South West) Ltd. Albert Road St. Philips Bristol Avon BS2 0XA Tel: 0117 972 4124 ARVINMERITOR INC: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Automotive and Equipment sector, the rating agency confirmed its Ba2 Corporate Family Rating for ArvinMeritor, Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sec. Revolving Credit Facility Ba1 Baa3 LGD 2 18% Secured Term Loan Ba1 Baa3 LGD 2 18% 8-1/8% Sr. Notes Ba3 Ba3 LGD 4 64% 8-3/4% Sr. Notes Ba3 Ba3 LGD 4 64% 6-3/4% Sr. Notes Ba3 Ba3 LGD 4 64% 6.8% Senior Notes Ba3 Ba3 LGD 4 64% 6-5/8% Sr. Notes Ba3 Ba3 LGD 4 64% 7-1/8% Sr. Notes Ba3 Ba3 LGD 4 64% Shelf Sr. Unsecured (P)Ba3 (P)Ba3 LGD 4 64% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's 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% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Troy, Michigan, ArvinMeritor, Inc. -- http://www.arvinmeritor.com/-- is a premier US$8.8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. In Europe, the company has operations in Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, Turkey and the United Kingdom. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. ASAP FREIGHT: I. P. Sykes Leads Liquidation Procedure ----------------------------------------------------- I. P. Sykes of Begbies Traynor was appointed Liquidator of ASAP Freight Services Limited on Sept. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: ASAP Freight Services Limited 1 Wish Road Eastbourne East Sussex BN214NX United Kingdom Tel: 01323 727 233 BALMORAL UPHOLSTERY: Names Gagen Dulari Sharma Liquidator --------------------------------------------------------- Gagen Dulari Sharma was appointed Liquidator of Balmoral Upholstery (U.K.) Limited on Sept. 8 for the creditors' voluntary winding-up procedure. The company can be reached at: Balmoral Upholstery (U.K.) Limited 5 Webb Street Bilston West Midlands WV148XL United Kingdom Tel: 01902 409 999 Fax: 01902 409 999 BRAKE BROS: Fitch Keeps Issuer Default Ratings at B+ ---------------------------------------------------- Fitch Ratings affirmed U.K.-based Brake Bros Acquisition PLC's and Brake Bros Finance PLC's Issuer Default ratings at B+ with Stable Outlook and Short-term ratings at B. This follows the announcement of the proposed issuance of Brake Bros Holding III Limited of GBP275 million pay-in-kind notes to refinance existing shareholder loans. The PIK notes will not be rated. At the same time, Fitch has taken these rating actions: -- Brake Bros Acquisition Plc senior secured facilities: affirmed at BB+/RR1; and -- Brake Bros Finance Plc senior notes due 2011: affirmed at B+/RR4. "According to Fitch's PIK rating methodology, the issuance of PIK notes at a holding company level does not have a detrimental effect on ratings provided that the notes do not benefit from any guarantee from the operating subsidiaries and do not pay cash interest, which is unlikely given the restrictions on permitted payments in the borrowing group lower down the capital structure," Pablo Mazzini, Director in Fitch's Leveraged Finance team disclosed. "In this case, the proposed terms of the PIK notes indicate that they will effectively have only an equity claim on the operating companies, and therefore Fitch has affirmed its ratings for the entities below the PIK borrower," Mr. Mazzini added. As already seen in other recent recycled LBO transactions, the use of PIK notes proceeds to make approximately GBP250 million payments to shareholders represents a return of a substantial part of their initial equity investment. In this instance, Fitch does not consider this a significant additional risk factor, as Brake Bros has exhibited a solid performance in recent quarters, extending the improving trend seen since the LBO in September 2002. In addition, senior debt repayment has been accelerated and is expected to continue, which reflects the commitment from management and the financial sponsors towards de-leveraging, thereby providing comfort for bondholders. Given the thin operating margins of Brake Bros, albeit in line with industry standards, and the historical volatility in free cash flow generation, Fitch is maintaining its Stable Outlook for the company. Nevertheless, Fitch views positively that some of the PIK proceeds would be used to reduce around 50% of the GBP34 million pension deficit, which would result in lower future funding requirements. Brake Bros is the U.K.'s leading foodservice company, whose operations are primarily focused on distributing fresh, frozen and chilled foods to the catering industry. Brake Bros is also present in France, where further scope for improvement is possible as profitability remains below industry average and the company focuses on distribution optimization. Brake Bros reported H106 revenues of GBP796 million and EBITDA of GBP46 million, which compares well against GBP793 million of sales in H105 and EBITDA of GBP31 million before exceptional items, or GBP23.8 million after exceptional costs. Cash-pay net leverage in the last 12-month to June 2006 was estimated at 2.9x reported EBITDA. The issuance of the PIK notes will result in pro-forma LTM June 2006 net leverage of 5.5x, which is in line with the credit ratios at LBO closing. BUDDIES MAIDSTONE: Taps Adelle Firestone to Liquidate Assets ------------------------------------------------------------ Adelle Firestone of Firestones was appointed Liquidator of Buddies (Maidstone) Limited on Aug. 18 for the creditors' voluntary winding-up procedure. Headquartered in Canterbury, U.K., Buddies (Maidstone) Limited is a clothing retailer. BUSINESS BASE: Hires F A Simms as Joint Administrators ------------------------------------------------------ Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners PLC were appointed joint administrators of Business Base U.K. Limited (Company Number 04703103) on Sept. 13. The administrators can be reached at: F A Simms & Partners PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Business Base U.K. Limited can be reached at: 16 Swan Street Leicester Leicestershire LE3 5AW United Kingdom CADMAN CONTRACTS: Appoints BDO Stoy as Joint Administrators ----------------------------------------------------------- Geoffrey Kinlan and Shay Bannon of BDO Stoy Hayward LLP were appointed joint administrators of Cadman Contracts Limited (Company Number 04788537) on Sept. 8. 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. Cadman Contracts Limited can be reached at: Moss Road Stanway Colchester Essex CO3 0LF United Kingdom Tel: 01206 543 232 CARDIFF TILE: Nominates Gary Stones to Liquidate Assets ------------------------------------------------------- Gary Stones of Stones & Co. was nominated Liquidator of Cardiff Tile Centre Limited on Sept. 8 for the creditors' voluntary winding-up procedure. The company can be reached at: Cardiff Tile Centre Limited Hadfield Road Cardiff South Glamorgan CF118AQ United Kingdom Tel: 029 2039 5506 Fax: 029 2034 4569 CHAMBERS OF ROCHESTER: Names Simon Paterson Liquidator ------------------------------------------------------ Simon Paterson of Moore Stephens LLP was appointed Liquidator of Chambers of Rochester Limited on Aug. 22 for the creditors' voluntary winding-up procedure. Headquartered in Rochester, U.K., Chambers of Rochester Limited -- http://www.chambersmotorcycles.co.uk/-- sells motorcycles and bicycles. COLOUR POWDER: Appoints Joint Administrators from DTE ----------------------------------------------------- A. Clifton and P. D. Masters of DTE Leonard Curtis were appointed joint administrators of Colour Powder Coatings Limited (Company Number 030807745) on Sept. 13. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Colour Powder Coatings Limited can be reached at: 10 Westwood Avenue Birmingham West Midlands B11 3RF United Kingdom Tel: 0121 772 3878 COMP U: Liquidator Sets Oct. 4 Claims Bar Date ---------------------------------------------- Creditors of Comp-u-doc Limited (formerly License to Build.Co.UK Limited) have until Oct. 4 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Martin C. Armstrong of Turpin Baker Armstrong at: Martin C. Armstrong Turpin Baker Armstrong Allen House 1 Westmead Road Sutton Surrey United Kingdom Headquartered in London, U.K., Comp-u-doc Limited -- http://www.comp-u.doc.co.uk/-- is a privately-owned company that provides tailor-made IT solutions for the SME marketplace. CPU CITY: Appoints Liquidator from Bottomley & Co. -------------------------------------------------- David Halstead Bottomley of Bottomley & Co. was appointed Liquidator of CPU City Limited on Sept. 7 for the creditors' voluntary winding-up procedure. Headquartered in Cheddar, U.K., CPU City Limited sells computer parts and tools on the Internet. DAVE SHELDON: Taps Geoffrey Martin as Administrators ---------------------------------------------------- John Twizell and Geoffrey Martin of Geoffrey Martin & Co. were appointed joint administrators of Dave Sheldon (Performance Tyres) Limited (Company Number 03352553) on Sept. 13. The administrators can be reached at: Geoffrey Martin & Co. St. James's House 28 Park Place Leeds West Yorkshire LS1 2SP United Kingdom Tel: 0113 244 5141 Fax: 0113 242 3851 E-mail: geoffrey.martin@geoffreymartin.co.uk Headquartered in Manchester, United Kingdom, Dave Sheldon (Performance Tyres) Limited deals tyres. EMF CHEMICALS: Claims Registration Ends Oct. 30 ------------------------------------------------ Creditors of EMF Chemicals Limited (formerly E.M.F. Limited and Postshape Limited) have until Oct. 30 to send in their full names, 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 Headquartered in Cambridge, U.K., EMF Chemicals Limited manufactures chemicals and equipment for the electronics and research community. EZ TECH: Appoints Terry Christopher Evans as Liquidator ------------------------------------------------------- Terry Christopher Evans was appointed Liquidator of EZ Tech Limited on Sept. 6 for the creditors' voluntary winding-up procedure. Headquartered in Bournemouth, U.K., EZ Tech Limited -- http://www.ezcomputers.co.uk/-- provides a large range of computer hardware and software products available online. FORD MOTOR: Executive Says Jaguar Brand Not For Sale Now -------------------------------------------------------- Lewis Booth, head of Ford of Europe and the Premier Automotive Group, or PAG, the organization under which all of Ford's European brands are grouped, told industry analysts that the company has no plans to sell its Jaguar luxury car brand at the moment, The Associated Press relates. According to the report, Mr. Booth revealed that Jaguar's status could change as the company reviews all its assets. As reported in TCR-Europe on Aug. 30, Sir Anthony Bamford, JC Bamford Excavators Ltd.'s chairman of the board, is looking at the possibility of buying the Jaguar brand from Ford. JC Bamford is a U.K.-based construction-machinery company. Mr. Bamford said that the brand has potential although Jaguar needs to cut ties with Land Rover for him to consider his plans further. Jaguar is part of the Premier Automotive Group, which includes other brands like Volvo, Land Rover and Aston Martin. In Ford's second quarter results, the segment incurred US$180 million net loss. The Company's management said the decline in earnings in the PAG segment primarily reflected unfavorable currency exchange related to the expiration of favorable hedges, adjustments to warranty accruals for prior model-year vehicles, mainly at Land Rover and Jaguar, and lower market share at Volvo associated with new model changeovers, offset partially by favorable product and market mix and lower overhead costs. Mr. Booth also serves as an executive vice president for PAG. European Restructuring Ford of Europe President and CEO John Fleming disclosed early this month that Ford Motor's strategic overhaul will not lead to a big revamp in its profitable European operations, Reuters reports. "We will continue to do what we always do -- we continue to refine our weight and get efficiencies year over year -- but not a major reorganization," Mr. Fleming said. Reuters says the company has already reduced the number of European assembly plants to seven from 11 and cut 9,300 jobs since 2000 while increasing output. Ford's plants now operate at over 100 percent capacity, and employs around 66,000 staff including joint ventures. In August 2006, sales of Ford brand vehicles in 21 European countries decreased 400 units to 95,300 vehicles and year-to- date sales increased 17,000 units to nearly 1.14 million units. In 2005, Ford of Europe earned US$129 million. As reported in TCR-Europe on Sept. 18, Ford Motor disclosed plans to further reduce its capacity and work force, and ramp up new product introductions as it accelerates its North America "Way Forward" turnaround plan. Ford will cut its North American salaried-related work force by about a third and offer buyout packages to all Ford and Automotive Components Holdings hourly employees in the U.S. The reductions will contribute significantly to reducing ongoing annual operating costs by about US$5 billion. In addition, Ford will renew 70% of its North American product lineup by volume by the end of 2008. 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. FOSTER ELECTRICAL: Names Joint Liquidators to Wind Up Business -------------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd were appointed Joint Liquidators of Foster Electrical (Gosport) Limited on Sept. 8 for the creditors' voluntary winding-up proceeding. The company can be reached at: Foster Electrical (Gosport) Limited 11 Livingstone Court Nimrod Drive Gosport Hampshire PO138AG United Kingdom Tel: 023 9258 8688 Fax: 023 9258 8770 GARAGE DOOR: Calls In Joint Liquidators from O' Hara & Co. ---------------------------------------------------------- Peter O'Hara and Simon Weir of O'Hara & Co. were appointed Joint Liquidators of The Garage Door & Shutter Company (Yorkshire) Limited on Aug. 17 for the creditors' voluntary winding-up proceeding. The company can be reached at: The Garage Door & Shutter Company (Yorkshire) Limited Brackenhill Road Haxey Doncaster South Yorkshire DN9 2LR Tel: 01302 701 111 GUILDHOUSE INSURANCE: Names Colin Andrew Presscott Liquidator ------------------------------------------------------------- Colin Andrew Prescott of Moore Stephens LLP was appointed Liquidator of Guildhouse (Insurance and Financial Services) Limited on Sept. 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: Guildhouse (Insurance and Financial Services) Limited 15 Boulevard Weston Super Mare Avon BS231NR United Kingdom Tel: 01934 641 999 Fax: 01934 641 555 INNOVATION RECRUITMENT: Brings In Joint Liquidators from Mazars --------------------------------------------------------------- S. D. Chandler and A. S. Wood of Mazars LLP were appointed Joint Liquidators of Innovation Recruitment (Kettering) Limited on Aug. 31 for the creditors' voluntary winding-up proceeding. The company can be reached at: Innovation Recruitment (Kettering) Limited 8 Market Street Kettering Northamptonshire NN160AH United Kingdom Tel: 01536 520 064 Fax: 01536 520 065 JOHN DALTON: Creditors Confirm Liquidator's Appointment ------------------------------------------------------- Creditors of John Dalton Construction Limited confirmed on Sept. 7 the appointment of Mark Stephen Goldstein as Liquidator. The company can be reached at: John Dalton Construction Limited 6 Strachan Place London SW19 4RH United Kingdom Tel: 020 8944 5917 Web: http://www.johndaltonconstruction.com/ JRF ROOFING: Taps John Paul Bell to Liquidate Assets ---------------------------------------------------- John Paul Bell was appointed Liquidator of JRF Roofing Services Limited on Sept. 6 for the creditors' voluntary winding-up proceeding. The company can be reached at: JRF Roofing Services Limited Beech House 23 Ladies Lane Hindley Wigan Lancashire WN2 2QA United Kingdom LAVIS MEDICAL: Claims Filing Period Ends Dec. 31 ------------------------------------------------ Creditors of Lavis Medical Systems Limited have until Dec. 31 to prove their debts by sending in their full names, their addresses and descriptions, full particulars of their debts or claims and the names and addresses of their Solicitors (if any) to appointed Liquidator M. R. Giles of JonesGiles Ltd. at: M. R. Giles JonesGiles Ltd. 246 Peverell Park Road Plymouth PL3 4QG United Kingdom Headquartered in Holsworthy, U.K., Lavis Medical Systems Limited manufactures, distributes, and repairs hearing aids and other medical equipment. MAY MAC: Appoints Joint Liquidators from Recovery hjs ----------------------------------------------------- Shane Biddlecombe and Gordon Johnston of Recovery hjs were appointed Joint Liquidators of May-Mac Environmental Services Limited on Sept. 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: May-Mac Environmental Services Limited 75 Bournemouth Road Chandlers Ford Eastleigh Hampshire SO533AP United Kingdom Tel: 023 8086 0665 MERIDEN HOLDINGS: Names Andrew Fender as Administrator ------------------------------------------------------ Andrew Fender of Sanderlings LLP was named administrator of Meriden Holdings Limited (Company Number 03952620) on Sept. 13. The administrator can be reached at: Sanderlings LLP Sanderling House 1071 Warwick Road Acocks Green Birmingham B27 6QT United Kingdom Tel: 0870 243 0540 Meriden Holdings Limited can be reached at: Meriden House 6 Great Cornbow Halesowen West Midlands B63 3AB United Kingdom Fax: 0121 504 0929 MWM ACCIDENT: Hires Joint Liquidators from Deloitte & Touche ------------------------------------------------------------ Stephen Anthony John Ramsbottom and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed Joint Liquidators of MWM Accident Repair Centre Limited on Sept. 12 for the creditors' voluntary winding-up proceeding. The company can be reached at: Accident Repair Centre Limited Unit 2 3 Stoke View Road Bristol Avon BS163AE United Kingdom Tel: 0117 965 3151 OBS TIMBER: Brings In Baker Tilly to Administer Assets ------------------------------------------------------ Phillip Hartland Allen and Guy Edward Brooke Mander of Baker Tilly were appointed joint administrators of OBS Timber Importers Limited (Company Number 03459164) on Sept. 11. 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. Headquartered in Kidderminster, United Kingdom, OBS Timber Importers Limited manufactures building truss and imports timber. OMBRIGHT LIMITED: Liquidator Sets Oct. 20 Claims Bar Date --------------------------------------------------------- Creditors of Ombright Limited (t/a Spectra Dyers & Finishers) have until Oct. 20 to send their names and addresses, and particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator R. J. Elwell of Elwell Watchorn & Saxton LLP at: R. J. Elwell Elwell Watchorn & Saxton LLP 109 Swan Street Sileby Leicestershire LE12 7NN United Kingdom The company can be reached at: Ombright Limited Pullman Road Wigston Leicestershire LE182DA United Kingdom Tel: 0116 257 1281 Fax: 0116 281 0075 PSA PEUGEOT: Unveils Recovery Plan; Eyes 10,000 Job Cuts -------------------------------------------------------- PSA Peugeot Citroen has implemented an action plan to increase its efficiency. The plan comprises a series of measures to be applied immediately with the goal of controlling costs, R&D efficiency, redefining product plan priorities and identifying new markets. The measures have been taken following a detailed assessment of the Group's situation. Several positive developments have been noted, including the growth in business outside Europe, the increase in cooperation agreements, the performance of the manufacturing base, the sharp improvement in vehicle quality and the successful launch of the Peugeot 207. However, the Group's declining market share in Europe-due to the high average age of its model lineups, the slow start-up for such innovative models as the Peugeot 1007, and the increase in competition- is a genuine source of concern. Against this mixed backdrop, Jean-Martin Folz, Chairman of PSA Peugeot Citroen, has unveiled a series of measures covering these main points: -- Taking Immediate Steps to Control Overheads intended to generate savings of EUR125 million in second- half 2006, these initiatives include a hiring freeze and measures to contain payroll costs and other overheads -- Adjusting the Production Cost Base PSA Peugeot Citroen is continuing to adjust its manufacturing teams in France and Spain by reducing the number of temporary employees and fixed-term contracts and by not replacing departing employees. In addition, the plant in Ryton (U.K.) is gradually being closed. As a result, the workforce in the Group's European plants will have been reduced by 10,000 in one year. The decision not to build a second production unit at the Trnava plant will lead to a EUR200 million reduction in the previously announced EUR350-million capital spending program. Lastly, the development of synergies between neighboring plants producing vehicles on the same platform is already underway between Mulhouse and Sochaux and will be extended to Poissy and Aulnay. The goal is to boost capacity utilization in the European plants (as measured by the Harbour index) back above 100% in 2007 and to around 110% in three years. -- Scaling Back the Capital Expenditure Plan PSA Peugeot Citroen's annual capital expenditure budget of roughly EUR3 billion will be reduced considerably to around EUR2.5 billion for the coming period, without however impacting the product plan. -- Enhancing R&D Efficiency A plan to make the automobile development process more efficient has been launched, with the goal of reducing R&D costs by 15% for vehicles just entering the development process. Because the total R&D budget will stay the same over the next three years, in euros, PSA Peugeot Citroen will be able to develop more new models more quickly. -- Redefining Product Plan Priorities The Group will renew core-range models in Europe more frequently to keep the average age low and extend its vehicle lineup to new market segments. In addition to renewing existing product ranges, by 2009 PSA Peugeot Citroen will introduce six new body styles in segments in which it currently has no models. Outside Europe, an assertive product strategy based on a wide range of models tailored to local customer expectations has been launched. Between 2006 and 2009, eleven rollouts are planned for China and six for the Mercosur countries. -- Pursuing New Opportunities Outside Europe With the signature of a memorandum of understanding to study a possible cooperation with Proton in Malaysia and the search for local production capacity in Russia, the Group is seeking to establish a presence in new growth markets while limiting its investments. Headquartered in Paris, France, PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/-- manufactures passenger cars and light commercial vehicles. The Company produces vehicles under the Peugeot and Citroen brands. In addition to car manufacturing, PSA Peugeot Citroen S.A. runs several divisions, including Banque PSA Finance, which federates the Company's finance companies; Faurecia, which manufactures automotive equipment, including car seats, exhaust systems and other components; Gefco, which furnishes transportation and logistics services; Peugeot Motocycles, which manufactures scooters and motorcycles; Peugeot Citroen Moteurs (PCM), which sells engines and gearboxes to customers outside the Company, and Process Conception Ingenierie (PCI), which designs and builds industrial equipment for the Company and other global carmakers. In 2005, PSA Peugeot Citroen S.A. sold 3.39 million vehicles in 150 countries worldwide. R & P SHOPFITTINGS: Names Joint Liquidators from CBA ---------------------------------------------------- Neil Charles Money and Neil Richard Gibson of CBA were appointed Joint Liquidators of R & P Shopfittings Limited on Sept. 6 for the creditors' voluntary winding-up proceeding. The company can be reached at: R & P Shopfittings Limited 51 Ibstock Road Ellistown Coalville Leicestershire LE67 1ED United Kingdom Tel: 01530 467088 RANSOME MARLOW: Creditors Confirm Liquidators' Appointment ---------------------------------------------------------- Creditors of Ransome Marlow Limited (t/a 4 Site Recruitment) confirmed Sept. 6 the appointment of Nigel Ian Fox and Carl Stuart Jackson of Tenon Recovery as Joint Liquidators. The company can be reached at: Ransome Marlow Limited 8 Burlington Arcade Bournemouth Dorset BH1 2HZ United Kingdom Tel: 01202 316 088 SCOTTISH RE: Ends & Cuts Syndicated Credit Facilities ----------------------------------------------------- Scottish Re Group Limited (NYSE: SCT) has permanently reduced the aggregate commitments under the Amended and Restated Credit Agreement dated July 14, 2005 among Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, Scottish Re (U.S.), Inc. and Scottish Re Limited and a syndicate of banks to US$42.8 million. The Company also announced that Scottish Annuity & Life Insurance Company (Cayman) Ltd., has terminated the Letter of Credit Agreement dated August 18, 2005 among Scottish Re (Dublin) Limited, Scottish Annuity & Life Insurance Company (Cayman) Ltd., various financial institutions, and Bank of America, N.A., as administrative agent, effective September 22, 2006. All letters of credit outstanding under that agreement, in an aggregate amount of US$10 million, have been cancelled. "As previously stated, the availability of further borrowings under these credit facilities has been uncertain," Dean Miller, Chief Financial Officer, remarked. "Rather than continue negotiations with the banking syndicate, we elected to permanently reduce the US$200 million credit facility to US$42.8 million, which is the face amount of outstanding letters of credit under the agreement. Using existing available liquidity, we are currently working with our clients to provide them with alternate letters of credit or assets in trust to replace these outstanding letters of credit." "Once these alternate letters of credit or assets in trust are in place, we can terminate the US$200 million credit facility which will eliminate the current restriction on the Company's ability to transfer funds to Scottish Re Group Limited in order to pay the US$115 million 4.5% Convertible Notes which can be put to the Company on Dec. 6, 2006. In addition, we terminated the US$30 million letter of credit facility available to our Dublin subsidiary." About Scottish Re Scottish Re Group Limited -- http://www.scottishre.com/-- offers reinsurance of life insurance, annuities and annuity-type products through its operating companies in Bermuda, Charlotte, North Carolina, Grand Cayman Dublin, Ireland, and Windsor, United Kingdom. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * As reported in TCR-Europe on Sept. 7, Moody's Investors Service changed the direction of review for Scottish Re Group Limited's ratings to uncertain from possible downgrade. The change in the direction of the ratings review impacts the company's Ba3 senior unsecured debt rating and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (U.S.), Inc. Moody's Rates Scottish Re Group Limited as: -- Senior Unsecured, to Ba2 from Baa2; -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2; -- Subordinate Shelf, to (P)Ba3 from (P)Baa3; -- Junior subordinate Shelf, to (P)B1 from (P)Ba1; -- Preferred Stock, to B1 from Ba1; -- Preferred Shelf, to (P)B1 from (P)Ba1 In August, Fitch Ratings also initiated these rating actions: -- IDR downgraded to 'BBB-' from 'BBB'; -- 4.5% US$115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; -- 5.875% US$142 million hybrid capital units downgraded to 'BB' from 'BB+'; -- 7.25% US$125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. Fitch said all ratings remain on Rating Watch Negative. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. SEAGATE TECH: Prices Subsidiary's US$1.5 Billion Notes Offer ------------------------------------------------------------ Seagate Technology disclosed the pricing of its offering of US$300 million of Floating Rate Senior Notes due 2009, US$600 million of 6.375% Senior Notes due 2011 and US$600 million of 6.8% Senior Notes due 2016. The notes are expected to be issued by Seagate Technology HDD Holdings, a direct wholly-owned subsidiary of the Company, and fully and unconditionally guaranteed by the Company. The 2009 Notes will bear interest at a floating rate equal to three-month LIBOR plus 0.84% per year, the 2011 Notes will bear interest at the rate of 6.375% per year, and the 2016 Notes will bear interest at the rate of 6.800% per year. Interest will be payable quarterly on Jan. 1, April 1, July 1 and Oct. 1 for the 2009 Notes and semi-annually on April 1 and Oct. 1 for the 2011 Notes and 2016 Notes. The Company may redeem the 2011 Notes and the 2016 Notes at any time prior to their maturity for a specified make-whole premium redemption price. The 2009 Notes will not be redeemable prior to their maturity date. The net proceeds from the offering is intended to be used to redeem the US$400 million principal amount of the Company's 8% Senior Notes due 2009, to fund a portion of its US$2.5 billion stock repurchase program and for general corporate purposes. In connection with the offering, the Company and Seagate Technology HDD Holdings entered into an Underwriting Agreement with the underwriters of the offering. As reported in the Troubled Company Reporter on Sept. 15, 2006 Morgan Stanley, JPMorgan and Goldman, Sachs & Co. are acting as joint book-running managers of the offering. Headquartered in Scotts Valley, California, Seagate Technology (NYSE: STX) -- http://www.seagate.com/-- designs, manufactures and markets hard disc drives, providing products for a wide- range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award- winning products, customer support and reliability to meet the world's growing demand for information storage. In Europe, the company maintains operations in France, Germany, the Netherlands and the United Kingdom. * * * As reported in the Troubled Company Reporter on Sept. 13, 2006, Moody's Investors Service affirmed the Ba1 Corporate Family Rating of Seagate Technology HDD Holdings. At the same time, Moody's assigned new ratings to a proposed new debt issuance of US$1.25 billion to finance Seagate's recently announced US$2.5 billion stock buyback program, as well as refinance Seagate's existing US$400 million 2009 notes. Ratings assigned include a Ba1 rating on Floating rate notes due 2009, Ba1 rating on Senior notes due 2011 and 2016. SEVENOAKS PLAYHOUSE: Names Liquidators to Wind Up Business ---------------------------------------------------------- Stephen John Tancock and Christopher David Stevens of Smith & Williamson Limited were appointed Joint Liquidators of Sevenoaks Playhouse Limited (formerly The Stag Theatre Limited) on Sept. 6 for the creditors' voluntary winding-up proceeding. The company can be reached at: Sevenoaks Playhouse Limited London Road Sevenoaks Kent TN131ZZ United Kingdom Tel: 01732 451 548 Web: http://sevenoaksplayhouse.co.uk/ SHELL SCHEME: Taps Liquidator from David Horner & Co. ----------------------------------------------------- David Anthony Horner of David Horner & Co. was appointed Liquidator of Shell Scheme Solutions Limited (formerly Exhibition Solutions Shell Schemes Limited) on Sept. 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Shell Scheme Solutions Limited Old Post House Front Street Topcliffe Thirsk North Yorkshire YO7 3RJ United Kingdom Tel: 01845 577 200 SNS LINGERIE: Creditors Confirm Liquidator's Appointment -------------------------------------------------------- Creditors of SNS Lingerie Limited confirmed Sept. 8 the appointment of Lyn Marie Green of Ward & Co. as Liquidator. The company can be reached at: SNS Lingerie Limited 18 Linton Close Redditch Worcestershire B98 0NA United Kingdom Tel: 01527 502 367 SOFTBANK CORP: Strong Brand Cues Moody's to Assign Ba2 Rating ------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Softbank Corp.'s proposed bonds of EUR500 million, due 2013. The rating outlook is stable. Softbank's Ba2 rating reflects its strong brand recognition in the Japanese broadband market -- as evidenced by its competitive position in ADSL and IP telephony -- and its position as one of the leading fixed-line telecom operators and third-largest mobile telecommunication operator in Japan. At the same time, the rating also incorporates the highly competitive telecom-operating environment in Japan and the company's relatively weak operating performance and high financial leverage compared to its peers. Softbank Corp., headquartered in Tokyo, is a holding company that owns leading global providers of various services, including broadband, fixed-line and mobile telecommunications, software distribution, networking and publishing. SOFTBANK CORP: S&P Assigns BB- Rating on EUR500-Mln Notes -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating to Softbank Corp.'s Euro euro-denominated senior unsecured notes due 2013. The issue size is expected to be EUR500 million. The rating on Softbank reflects its weak capital structure, which deteriorated after the company's debt-financed purchase of Vodafone K.K. The acquisition price was JPY1,690 billion and was funded primarily through JPY1,166 billion in bridge financing from 17 financial institutions. However, the company's overall earnings are improving, and this should lower the chances of further deterioration in its capital structure. Within the next few weeks, Softbank is expected to decide on a plan to refinance the bridge loans into long-term financing. Given the company's relationship with its lender financial institutions and its latent profits on securities, its refinancing and liquidity risks should be limited. The acquisition of Vodafone K.K. turned Softbank into a comprehensive telecom service provider, offering a wide range of fixed-line, mobile, and Internet-related services. The name of Vodafone K.K. is scheduled to change to Softbank Mobile Co. Ltd. on Oct. 1, 2006. In order to achieve synergy effects from the acquisition, Softbank needs to rapidly strengthen its mobile communications business while dealing with its increased debt burden. As Vodafone K.K. suffers from a weaker business franchise in Japan than its peers, the prospect of achieving these goals remains uncertain. Nevertheless, Softbank's business profile in the Internet-related field and its strengths in the content business, such as its Yahoo! Japan portal, are likely to serve as competitive advantages. STARPOINT CARD: Names Keith Aleric Stevens Liquidator ----------------------------------------------------- Keith Aleric Stevens of Wilkins Kennedy was appointed Liquidator of Starpoint Card Sales Limited on Sept. 5 for the creditors' voluntary winding-up procedure. Headquartered in Kingston Upon Thames, U.K., Starpoint Card Sales Limited sells telephone cards. STORM DISPLAY: Creditors' Meeting Slated for October 2 ------------------------------------------------------ Creditors of Storm Display Limited (Company Number 03000508) will meet at 11:00 a.m. on Oct. 2 at: Butcher Woods 79 Caroline Street Birmingham B3 1UP 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 noon on Sept. 29 at: Roderick Graham Butcher Administrator Butcher Woods 79 Caroline Street Birmingham West Midlands B3 1UP United Kingdom Tel: 0121 236 6001 Fax: 0121 236 5702 E-mail: rod.butcher@butcher-woods.co.uk TAURUS CUSTOM: Claims Filing Period Ends Oct. 24 ------------------------------------------------ Creditors of Taurus (Custom Access Solutions) Limited have until Oct. 24 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) appointed Liquidator Neil Francis Hickling of Smith & Williamson Limited at: Neil Francis Hickling Smith & Williamson Limited No. 1 St. Swithin Street Worcester WR1 2PY United Kingdom Headquartered in Consett, U.K., Taurus (Custom Access) Solutions Limited -- http://www.tauruscas.co.uk/-- installs wheelchair access lifts. TEMPERAL ENGINEERING: Claims Registration Ends Oct. 5 ----------------------------------------------------- Creditors of Temperal Engineering Limited (formerly Gemco-SAS Limited and Gemco Furnaces Limited) have until Oct. 5 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator David Anthony Horner of Horner & Co. at: David Anthony Horner Horner & Co. 11 Clifton Moor Business Village James Nicolson Link Clifton Moor York YO30 4XG United Kingdom The company can be reached at: Temperal Engineering Limited The Airfield Full Sutton York North Yorkshire YO411HS United Kingdom Tel: 01902 892 388 Web: http://www.temperal.com/ TRANSURE U.K.: Hires Joint Liquidators from Lines Henry ------------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of Transure U.K. Limited on Aug. 17 for the creditors' voluntary winding-up procedure. Headquartered in Colchester, U.K., Transure U.K. Limited fabricates steel. TWINMILLS LIMITED: Calls in Joint Liquidators from Vellacott DFK ---------------------------------------------------------------- Richard Howard Toone and Kevin Anthony Murphy of Chantrey Vellacott DFK LLP were appointed Joint Liquidators of Twinmills Limited on Sept. 5 for the creditors' voluntary winding-up procedure. Headquartered in London, U.K., Twinmills Limited operates a restaurant and a hotel. W.R. RICHARDS: Claims Filing Period Ends Oct. 20 ------------------------------------------------ Creditors of W.R. Richards (Rowan) Limited have until Oct. 20 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Richard Neville of Neville & Co. at: Richard Neville Neville & Co. 10 & 11 Lynher Building Queen Anne's Battery Plymouth PL4 0LP United Kingdom Headquartered in Penryn, U.K., W.R. Richards (Rowan) Limited -- http://www.wr-richards-sageweb.co.uk/-- is a vehicle body builder and repairer. WILLIAMSON MOTORS: Barclays Bank Taps Grant Thornton Receivers -------------------------------------------------------------- Barclays Bank PLC appointed Joseph P. McLean and Keith Hinds of Grant Thornton U.K. LLP joint administrative receivers of Williamson Motors Limited (Company Number 590108) on Sept. 18. 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 Cleveland, United Kingdom, Williamson Motors Limited retails motor vehicle. WINDOWCRAFT LIMITED: Appoints J. M. Titley to Liquidate Assets -------------------------------------------------------------- J. M. Titley of DTE Leonard Curtis was appointed Liquidator of Windowcraft Limited on Aug. 23 for the creditors' voluntary winding-up procedure. Headquartered in Eastbourne, U.K., Windowcraft Limited -- http://windowcraft.co.uk/-- supplies and fits a complete range of conservatories, windows, and doors. The company also supplies and fits replacement fascia, softfits, and guttering. * BOOK REVIEW: Crafting Solutions for Troubled Businesses --------------------------------------------------------- Author: Stephen J. Hopkins and S. Douglas Hopkins Publisher: Beard Books Hardcover: 316 pages List Price: US$74.95 Order your personal copy at: http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankrupt The book is a practical guide to evaluating and addressing the challenges of a distressed business -- whether due to being over leveraged, poorly managed, or is under performing. The authors provide practical advice, based on their involvement collectively in more than 150 financially stressed businesses, on how to maximize the value of a troubled business. The authors identify patterns of problems and conclude that financially troubled companies can generally be segmented into three classifications: Undisciplined Racehorses, Overburdened Workhorses, and Aging Mules. Using these classifications as a conceptual framework, the authors offer extensive, fact-based problem diagnosis, and solution tools, and show how to "separate the wheat from the chaff and maximize the value of each." Stephen J. Hopkins and S. Douglas Hopkins, a father-son team, are founders and principals of Kestrel Consulting, LLC. ********* 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/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* 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 * * *