/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061018.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 Wednesday, October 18, 2006, Vol. 7, No. 207 Headlines A U S T R I A DELLA MORE: Claims Registration Period Ends October 19 EHRENBRANDNER LLC: Claims Registration Period Ends Oct. 31 OBERDA & ZEIDL: Claims Registration Period Ends October 31 PETER SCHWITZER: Creditors' Meeting Slated for October 20 WOBAG LLC: Property Manager Declares Insufficient Assets B E L G I U M GOODYEAR TIRE: Moody's Affirms Rating on Labor Negotiations JLG INDUSTRIES: Sells Business to Oshkosh for US$3.2 Bln in Cash F I N L A N D SANMINA-SCI: Needs to Restate Historical Financial Statements SANMINA-SCI: Inks US$600 Million Term Loan with Bank Syndicate SANMINA-SCI: Stock Option Probe Cues Moody's to Put Ba2 Ratings SANMINA-SCI: Fitch Lowers Sr. Subordinated Debt to B/RR5 F R A N C E ALCATEL SA: Inks Network Deal with Vimpelcom's Mobitel Unit BALL CORP: Closing Two North American Manufacturing Facilities BALL CORPORATION: Moody's Assigns Loss-Given-Default Ratings JLG INDUSTRIES: Sells Business to Oshkosh for US$3.2 Bln in Cash METALDYNE CORP: Lockup Agreement Cues Moody's to Change Review G E O R G I A ALCATEL SA: Inks Network Deal with Vimpelcom's Mobitel Unit VIMPEL-COMMUNICATIONS: Taps Alcatel to Set up Mobitel's Network G E R M A N Y ATRO GMBH: Claims Registration Ends October 27 DIGITAL4U.DK-DEUTSCHLAND: Claims Registration Ends Oct. 25 DURA AUTOMOTIVE: Unit Unable to Make Interest Payment on Notes DURA AUTOMOTIVE: Non-Payment of Interest Cues S&P's D Rating ESTHERELL GMBH: Claims Registration Ends October 31 GFC GRUNDSTUECKSVERWALTUNGS: Creditors' Meeting Set for Oct. 26 GREENBRIER COS: Buys Meridian Rail for US$227.5 Million Cash GREENBRIER COS: Acquisition Prompts Moody's to Review Ratings KONZEPTA GRUNDSTUECKS: Creditors' Meeting Slated for Oct. 30 LACKIER- UND TROCKENANLAGEN: Claims Registration Ends October 31 LUXFER HOLDINGS: Inks Deal to Reorganize Balance Sheet LUXFER HOLDINGS: Fin'l. Reorganization Cues Moody's Junk Ratings METALDYNE CORP: Lockup Agreement Cues Moody's to Change Review NORDKALTE GMBH: Claims Registration Ends October 26 OPTIMAT BLOM: Claims Registration Ends October 26 RAMBUS INC: Appoints David Shrigley as Independent Director SIAM CUISINE: Creditors' Meeting Slated for October 25 SWL SCHRIFT: Claims Registration Ends October 25 SYRITAI AUSSENHANDELS: Creditors' Meeting Slated for Oct. 25 VOLKSWAGEN AG: Supports MAN AG Takeover Bid for Scania W. BURRI: Claims Registration Ends October 23 H U N G A R Y BORSODCHEM NYRT: Withdraws Employee Shares to Reduce Capital INVITEL HOLDINGS: Launches EUR118-Mln Sr. PIK Notes Offering INVITEL HOLDINGS: Moody's Places B1 Rating Under Review I T A L Y BANCA POPOLARE: Fitch Puts Individual C Rating on Watch Positive PARMALAT: Court Permits Citibank to Pursue Actions from Oct. 31 K A Z A K H S T A N ARGUMENT LLP: Kostanai Court Opens Bankruptcy Proceedings ARKO LTD: Creditors Must File Claims by Nov. 15 HAZAR-XXI: Aktube Court Begins Bankruptcy Proceedings KA-PEKS-STROY: Almaty Court Starts Bankruptcy Procedure KAISAR: Almaty Court Commences Bankruptcy Proceedings KRATT INDUSTRIAL: Proof of Claim Deadline Slated for Nov. 17 PETROPAVLOVSK-FORT: Claims Registration Ends Nov. 14 REMIX-R: Creditors' Claims Due Nov. 17 VEGA LLP: Almaty Court Begins Bankruptcy Proceedings K Y R G Y Z S T A N ARM STROY: Creditors Must File Claims by Nov. 24 SPORT LIFE: Proof of Claim Deadline Slated for Nov. 24 L U X E M B O U R G EVRAZ GROUP: Eyes Foreign Assets; Denies Merger Talks N E T H E R L A N D S ARI NETWORK: July 31 Balance Sheet Upside-Down by US$300,000 P O L A N D BORSODCHEM NYRT: Withdraws Employee Shares to Reduce Capital GREENBRIER COS: Buys Meridian Rail for US$227.5 Million Cash GREENBRIER COS: Acquisition Prompts Moody's to Review Ratings R U S S I A AGIDEL: Court Names N. Mutallapov as Insolvency Manager BAKERY LLP: Penza Court Names P. Milov as Insolvency Manager BRICKWORKS LLC: Court Names P. Milov as Insolvency Manager CHAINSAYA AGRO: Court Starts Bankruptcy Supervision Procedure EVRAZ GROUP: Eyes Foreign Assets; Denies Merger Talks GLASS AND FINANCES: Court Names P. Tumbasov to Manage Assets ISETSKIY: Court Names I. Ulmatov as Insolvency Manager IVANOVSKIY FACTORY: Bankruptcy Hearing Slated for Feb. 21 KLIMA CJSC: Court Names N. Mutallapov as Insolvency Manager LOMONOSOVSKOYE TRANSPORT: I. Babenko to Manage Insolvency Assets LUKOIL OAO: License Revocation on Komi & Siberian Sites Looms N.A.S.A. CJSC: Court Names P. Tarasov as Insolvency Manager NORD LTD: Yaroslavl Court Names P. Tarasov as Insolvency Manager PROMSVYAZBANK JSCB: Earns RUR3.28 Bln for January-September 2006 RIGHT WAY: Moscow Court Names A. Lyutyj as Insolvency Manager STERLIBASH-MOL-ZAVOD: Court Starts Bankruptcy Supervision STUD AZINSKIY: Perm Bankruptcy Hearing Slated for Jan. 12 VIMPEL-COMMUNICATIONS: Taps Alcatel to Set up Mobitel's Network S L O V E N I A GOODYEAR TIRE: Moody's Affirms Rating on Labor Negotiations S P A I N FOSTER WHEELER: Moody's Changes Rating on Credit Facility to Ba1 S W E D E N SANMINA-SCI: Needs to Restate Historical Financial Statements SANMINA-SCI: Inks US$600 Million Term Loan with Bank Syndicate SANMINA-SCI: Stock Option Probe Cues Moody's to Put Ba2 Ratings SANMINA-SCI: Fitch Lowers Sr. Subordinated Debt to B/RR5 STRATOS GLOBAL: Moody's Assigns Loss-Given-Default Ratings T U R K E Y FOSTER WHEELER: Moody's Changes Rating on Credit Facility to Ba1 U K R A I N E DNIPROPETROVSK MEAT: Court Names Mihajlo Grishin as Liquidator INTERAGROSERVICE: Court Names Sergij Yegorenkov as Liquidator INTURIST-SIMFEROPOL: Svitlana Tamashova to Liquidate Assets KIROVSK AUTO 10923: Court Names Mikola Hajlo as Liquidator MAGISTR-LTD: Court Names Galina Yeryomenko as Liquidator MARSH LLC: Kyiv Court Names Roman Sapelin as Insolvency Manager MIZYAKIVSKI-HUTORI: Court Names Artur Milovanov as Liquidator RADIAL LLC: Lviv Court Starts Bankruptcy Supervision TAVRIYA: Zaporizhya Court Names O. Kretova as Insolvency Manager TEP HOLDING: Kyiv Court Starts Bankruptcy Supervision WINNER GROUP: Kyiv Court Names Oleksandr Palshin as Liquidator U N I T E D K I N G D O M AQUARIUM SUPERSTORE: Appoints Liquidators from CBA ASPIRE LEISURE: Taps C. H. I. Moore to Liquidate Assets BALL CORP: Closing Two North American Manufacturing Facilities BALL CORPORATION: Moody's Assigns Loss-Given-Default Ratings BERRIVALE LTD: Nominates Andreas Georgiou Kakouris as Liquidator BETONSPORTS PLC: Has Not Paid Workers After Closure, Report Says BOFLIN CONSTRUCTION: Claims Filing Period Ends Nov. 15 COLBYRNE PLANT: Creditors Confirm Voluntary Liquidation COLLINS & AIKMAN: Submits Severance Package for Laid-Off Workers COLLINS & AIKMAN: Wants Status Conference Held on October 26 CONSTELLATION BRANDS: Restates Certificate of Incorporation CS PROPERTY: Hires Paul Appleton to Liquidate Assets CT PACKAGING: Brings In UHY Hacker Young as Administrators DAMOVO GROUP: Weak Performance Prompts Moody's Junk Ratings DURA AUTOMOTIVE: Unit Unable to Make Interest Payment on Notes DURA AUTOMOTIVE: Non-Payment of Interest Cues S&P's D Rating EURAMAX INT'L: Moody's Assigns Loss-Given-Default Rating EUROPEAN MICRO: Files 2001 Financials With Going Concern Opinion FC RECOVERY: Creditors' Meeting Slated for October 19 GARRY HEINS: Creditors' Meeting Slated for October 19 HILMAX ENGINEERING: Appoints Administrators from Vantis ISLE OF CAPRI: Modifies Agreement for Singapore Project IWL COMMUNICATIONS: Moody's Assigns Loss-Given-Default Ratings JFL AUTOMOTIVE: Creditors' Meeting Slated for October 24 LASHMORE EUROPEAN: Brings In Liquidator from Fisher Partners LIBERTY CONTRACTS: Creditors Ratify Voluntary Liquidation LIFE OF LEISURE: Taps Stephen Gordon Franklin as Administrator LUXFER HOLDINGS: Inks Deal to Reorganize Balance Sheet LUXFER HOLDINGS: Fin'l. Reorganization Cues Moody's Junk Ratings MANDIS INFORMATION: Calls In Liquidators from Begbies Traynor MANTAVOGUE LIMITED: Liquidators Set Nov. 2 Claims Bar Date MARBLE ARCH: Fitch Assigns BB Rating to GBP25.2 Million Notes MORPHEUS PLC: Fitch Affirms BB- Rating on GBP12.4 Million Notes NEWGATE 2006-3: Moody's Assigns (P)Ba2 Rating on Class E Notes ON-TIME EUROPEAN: Taps David Acland to Liquidate Assets OPEN TEXT: Closes Hummingbird Equity Purchase for US$489 Million PHOENIX COMPUTER: Hires Liquidator from Begbies Traynor POWERED ACCESS: Calls In Liquidators from Rimmer Higson REFCO INC: Court Gives Tentative Nod on Disclosure Statement REFCO INC: Unit's Case Summary & 53 Largest Unsecured Creditors REGALI RICCHI: Names Liquidators from Harrisons REKRI8 LIMITED: Bank of Scotland Appoints Joint Receivers ROOTS ASSOCIATES: Creditors' Meeting Slated for October 20 SANDERSON PRECISION: Brings In Paul Webb to Administer Assets SANDUSKY WALMSLEY: Creditors' Meeting Slated for October 20 SCRIBES LIMITED: Creditors Confirm Liquidator's Appointment SIRVA WORLDWIDE: Operating Pressures Spur Moody's to Cut Ratings SOUTHERN COUNTY: E. J. Stonham Leads Liquidation Procedure SOUTHERN DRILLING: Appoints Fisher Partners as Administrators SPLASH OF PAINT: Brings In Bishop Fleming to Administer Assets SPORTINGBET PLC: Sells U.S. Business to Jazette Ent. for US$1 STEWART COOK: Creditors' Meeting Slated for October 23 SULLIVAN CONSTRUCTION: Names Timothy Calverley Liquidator TANKERTON BATHROOM: Hires Liquidator from Fisher Partners TIPTOP RUNNERS: Creditors' Claims Due Nov. 17 TLS EUROPE: Creditors' Meeting Slated for October 24 VENTURE DISTRIBUTION: Taps Administrators from Fanshawe Lofts VIA GELLIA: Hires F A Simms as Joint Administrators WARDELL HURST: Nominates Liquidators from Abbott Fielding WESTMINSTER HOSPITALITY: Names Zafar Igbal as Administrator ********* ============= A U S T R I A ============= DELLA MORE: Claims Registration Period Ends October 19 ------------------------------------------------------ Creditors owed money by LLC Della More (FN 192530h) have until Oct. 19 to file written proofs of claims to court-appointed property manager Andreas Alzinger at: Dr. Andreas Alzinger Karntner Ring 12 1010 Vienna, Austria Tel: 516 20 Fax: 512 46 55 E-mail: a.alzinger@baierlambert.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 2 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 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 5 (Bankr. Case No. 5 S 125/06a). EHRENBRANDNER LLC: Claims Registration Period Ends Oct. 31 ---------------------------------------------------------- Creditors owed money by LLC Ehrenbrandner (FN 106572z) have until Oct. 31 to file written proofs of claims to court- appointed property manager Christian Ebmer at: Mag. Christian Ebmer Schillerstrasse 12 4020 Linz, Austria Tel: 65 69 69 Fax: 65 69 69-60 E-mail: office@hep-co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 14 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor Linz, Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on Sept. 5 (Bankr. Case No. 38 S 39/06y). OBERDA & ZEIDL: Claims Registration Period Ends October 31 ---------------------------------------------------------- Creditors owed money by KEG Oberda & Zeidl (FN 223333g) have until Oct. 31 to file written proofs of claims to court- appointed property manager Maximilian Schludermann at: Dr. Maximilian Schludermann c/o Mag. Wolfgang Winkler Reisnerstrasse 32/12 1030 Vienna, Austria Tel: 715 50 45 Fax: 715 50 47 4 E-mail: office@anwalt-vienna.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:30 p.m. on Nov. 14 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 1701 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 5 (Bankr. Case No. 6 S 75/06f). Wolfgang Winkler represents Dr. Schludermann in the bankruptcy proceedings. PETER SCHWITZER: Creditors' Meeting Slated for October 20 --------------------------------------------------------- Creditors owed money by LLC Peter Schwitzer (FN 42858b) are encouraged to attend the creditors' meeting at 10:20 a.m. on Oct. 20 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Innsbruck Hall N214 2nd Floor New Building Maximilianstrasse 4 A-6020 Innsbruck, Austria Headquartered in Kirchbichl, Austria, the Debtor declared bankruptcy on Sept. 5 (Bankr. Case No. 9 S 23/06s). Ingrid Hochstaffl-Salcher serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Ingrid Hochstaffl-Salcher Hochstaffl & Rupprechter, Rechtsanwalte Bahnhofstrasse 37 2nd Floor 6300 Woergl, Austria Tel: 05332/71 800 Fax: 05332/71 800 7 E-mail: mail@hochstaffl-rupprechter.com WOBAG LLC: Property Manager Declares Insufficient Assets -------------------------------------------------------- Dr. Georg Kahlig, the court-appointed property manager for LLC Wobag (FN 68636k), declared Sept. 4 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 12 (Bankr. Case No. 5 S 100/06z). Gerhard Stauder represents Dr. Kahlig in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Georg Kahlig c/o Mag. Gerhard Stauder Siebensterngasse 42/3 1070 Vienna, Austria Tel: 523 47 91-0 Fax: 523 47 91 33 E-mail: kahlig.partner@aon.at ============= B E L G I U M ============= GOODYEAR TIRE: Moody's Affirms Rating on Labor Negotiations ----------------------------------------------------------- Moody's Investors Service affirmed Goodyear Tire & Rubber Co.'s B1 Corporate Family rating, but changed the outlook to negative from stable. At the same time, the company's Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. These rating actions reflect the increased operating uncertainty arising from the ongoing United Steelworkers strike at Goodyear's North American facilities, and the company's decision to increase cash on hand by drawing-down US$975 million under its domestic revolving credit facility. In the short-term, the extraordinary borrowing confirms liquid resources at the company's disposal, but does so by increasing gross leverage and carrying costs while labor negotiations in its critical North American market remain unresolved. Goodyear's pro forma global cash position of US$2.3 billion limits any near-term default probability, and the anticipated investment of the revolver proceeds in money market securities does not alter its net debt position. However, the uncertain outcome of any negotiations with the USW, the resultant impact on Goodyear's North American cost structure and competitive position, and the potential disruption to its tire production and customer relationships create an additional degree of near-term risk for Goodyear's credit stature. In Moody's view, the decision to draw under the credit facility may reflect the extent of the gap between the parties and the time frame in which a conclusion might be reached. Should the USW negotiations be concluded in a timely and constructive manner, it is likely that the rating outlook would be changed to stable and the Speculative Grade Liquidity rating raised to SGL-2. Ratings affirmed: Goodyear Tire & Rubber Co. * PDR: B1 * first lien credit facility, Ba1, LGD2, 10% * second lien term loan, Ba3, LGD3, 35% * third lien secured term loan, B2, LGD4, 63% * 11% senior secured notes, B2, LGD4, 63% * floating rate senior secured notes, B2, LGD4, 63% * 9% senior notes, B2, LGD4, 63% * 6 5/8% senior notes, B3, LGD6, 94% * 8 1/2% senior notes, B3, LGD6, 94% * 6 3/8% senior notes, B3, LGD6, 94% * 7 6/7% senior notes, B3, LGD6, 94% * 7% senior notes, B3, LGD6, 94% * senior unsecured convertible notes, B3, LGD6, 94% Goodyear Dunlop Tyres Europe * Euro revolving credit facilities, Ba1, LGD2, 10% * Euro secured term loan, Ba1, LGD2, 10% Ratings changed: Goodyear Tire & Rubber Co. * Speculative Grade Liquidity rating to SGL-3 from SGL-2 Goodyear's announcement of Oct. 13 will increase debt/EBITDA to roughly 5.4 times on a pro forma basis from 5.0 times using June 30 results. Similarly, EBIT/interest would experience a minor deterioration from the 1.5 times achieved at the end of June. However, such calculations would presume a forward run- rate of earnings level with June LTM results. Weak replacement tire demand in North America, challenges to yield management from high and volatile commodity costs and surplus industry capacity, and publicly unspecified rates at which it can replenish tires sold from inventory while USW workers are on strike underscore risks to assumptions for future performance metrics. Moody's would expect Goodyear's international operations, which generate the preponderance of profits and cash flow, to continue to perform well. Any emerging changes to Goodyear's profile must also be considered in the context of the qualitative and quantitative progress the company has made over the last few years, and the room established within the current rating category for any immaterial relapse. While Goodyear currently has tires to satisfy customer requirements in North America, should that capacity diminish over time, its North American enterprise value and cash flows could deteriorate. While these risks are not imminent, they could appear on the horizon with greater certainty before year- end. A resolution of the labor negotiations could clarify the company's prospects beyond the next few weeks, but the time frame to expect an agreement is unknown. As a precaution, the outlook has been changed to negative. This could quickly be reversed should a resolution be announced, its terms assessed, and revolver borrowings unwound. The SGL-3 represents adequate liquidity over the next twelve months. The borrowing has substantially bolstered the company's balance sheet resources, but internal cash flow beyond the next few weeks is harder to predict. A labor agreement satisfactory to the company could also involve up-front restructuring expenditures. The trade-off to the increase in cash is the effective exhaustion of remaining unused commitments under the domestic revolving credit facility. The company will have comfortable headroom under its two financial covenants. But, over time, unknown EBITDA generation may start to erode this cushion. A near-term resolution of the labor dispute could also lead to a rapid change in the company's liquidity profile. Consequently, the Speculative Grade Liquidity profile has been lowered to SGL-3. Goodyear Tire & Rubber Co., headquartered in Akron, OH, is one of the world's largest tire companies with more than 100 facilities in 29 countries around the world. Products include tires, engineered rubber products, and chemicals. Revenues in 2005 were approximately US$20 billion. JLG INDUSTRIES: Sells Business to Oshkosh for US$3.2 Bln in Cash ---------------------------------------------------------------- Oshkosh Truck Corp. has signed a definitive agreement to acquire all outstanding shares of JLG Industries Inc. for US$28 per share. Total consideration, including transaction costs and assumed debt, is US$3.2 billion in cash on a fully diluted basis. This transaction will create a US$6 billion global specialty vehicle manufacturer. "We have consistently executed strategies to grow this company, creating significant shareholder value during the last decade," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer. "The acquisition of JLG is the latest broad- based initiative in the continuing transformation of Oshkosh Truck Corporation. It is aligned with our historic acquisition strategy as we expand into complementary markets and it will be instrumental in building our global focus and scale that are increasingly needed to continue to be successful. It also meets our major acquisition criteria, which include market leadership, strong management, double digit growth opportunities and the expectation of earnings in excess of our cost of capital." JLG had US$2.3 billion in revenues during fiscal 2006 and has estimated a 20 to 25 percent increase in sales in fiscal 2007. It has the top market position in North America and Europe for aerial work platforms and is the top producer of telehandlers in the United States. JLG placed 22nd on FORTUNE magazine's 2006 list of the 100 Fastest-Growing Companies. The ranking was based on three-year profit and sales growth through the first quarter of 2006 and three-year total return to shareholders. "This transaction is a good fit for JLG," stated William M. Lasky, chairman, president and chief executive officer of JLG. "Oshkosh has a similar philosophy of offering premier products, creating strong market positions and delivering after-sales service and support. For the JLG team, this combination offers additional growth opportunities. For our customers, JLG will become an even stronger partner in their future success. We look forward to working with the Oshkosh management team to ensure a rapid and seamless transition." "We are excited about the addition of this market-leading, global company and expect a smooth integration into the Oshkosh family. At the same time, we expect to realize substantial purchasing and logistical synergies, while benefiting from JLG's already outstanding manufacturing operations. We have a long history of successful acquisitions and expect to build on that history," Mr. Bohn added. Details of the Transaction The transaction is expected to be modestly accretive to Oshkosh's earnings per share in fiscal 2007 after giving effect to estimated non-cash charges relating to amortization of acquired intangibles and other one-time accounting and transaction related costs. Oshkosh will finance the transaction with a US$3.5 billion senior credit facility provided by Bank of America, N.A. and JPMorgan Chase Bank, N.A. and retire most of JLG's currently outstanding debt. The acquisition has been approved by the Board of Directors of each company and is subject to customary closing conditions, including approval under Hart-Scott-Rodino and similar laws outside the U.S. and the approval by the shareholders of JLG. The transaction is expected to be completed within ninety days. Upon completion of the transaction, JLG will become the largest of four business segments of Oshkosh. It continues the diversification of the company. In fiscal 2008, the first full fiscal year of Oshkosh's expected ownership of JLG, Oshkosh estimates that JLG will represent approximately 40 percent of its consolidated sales and operating income. "We are pleased to be bringing a solid company like JLG into Oshkosh Truck. Their product leadership and innovative culture will be a great fit with our approach. It is evident from the strong reactions of both Boards that we have an opportunity to do something very special," added Mr. Bohn. About Oshkosh Bases in Oshkosh, Wisconsin, Oshkosh Truck Corp. -- http://www.oshkoshtruckcorporation.com/-- designs, manufactures, and markets various specialty commercial, fire and emergency, and military trucks; truck bodies; mobile and stationary compactors, and transfer stations; and portable and stationary concrete batch plants worldwide. About JLG Industries JLG Industries, Inc. -- http://www.jlg.com/-- produces access equipment (aerial work platforms and telehandlers) and highway- speed telescopic hydraulic excavators. JLG's manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents. * * * As reported in the Troubled Company Reporter on May 24, Moody's Investors Service upgraded the debt ratings of JLG Industries, Inc. -- Corporate Family Rating to Ba3 from B1, Senior Unsecured Notes to B1 from B2, and Senior Subordinate Notes to B2 from B3. The outlook is changed to stable from positive. ============= F I N L A N D ============= SANMINA-SCI: Needs to Restate Historical Financial Statements ------------------------------------------------------------- Sanmina-SCI Corp. disclosed that the Special Committee of its Board of Directors reported its findings after an investigation into the company's stock option administration policies and practices dating back to Jan. 1, 1997. The Special Committee, comprised of disinterested, non- management members of the Board, retained independent counsel and forensic accountants to assist it in conducting the investigation. In the course of its four-month investigation, the investigation team examined over one million electronic documents and over 350,000 pages of hardcopy documents, and conducted more than 40 interviews with current and former employees, directors and advisors. The Special Committee found that most stock option grants to executives and other employees between 1997 and 2006 were not correctly dated or accounted for and will require that the company restate its historical financial results and record non- cash compensation charges. The investigation identified concerns in particular regarding the actions of a former and a current member of management involved in the authorization, recording and reporting of stock option grants. The company has accepted the resignation of the current member of management. The Board of Directors and Special Committee have responded and continue to respond to these issues and are taking appropriate action, the details of which will be disclosed to the appropriate regulatory authorities. The Special Committee also made recommendations to the Board of Directors regarding remediation of weaknesses in the company's internal controls over its stock administration practices that led to the issues identified, including, among other controls, the following: -- Establishing fixed dates for the granting of all equity-based awards; -- Precluding officers, and certain other identified executives, from receiving equity-based awards during any black-out periods; -- Requiring auditable, verifiable evidence of the date of approval for routine new hire, promotion and certain discretionary grants; and -- Mandating approval of the Compensation Committee prior to issuance of all other grants. Each of the recommendations was voted on by the Board of Directors and unanimously adopted. The recommendations are effective immediately. Commenting on the situation, Sanmina-SCI's Chief Executive Officer, Jure Sola, stated, "I am pleased with the thoroughness of the Special Committee's investigation and the recommendations they have made to remediate, and help us insure that this never happens again. I regret that our stock options program was not properly administered in the past and I apologize to our stockholders, employees, and customers for any impact or concerns these issues may have caused. With this investigation now behind us, we expect to refocus our management's attention on servicing the needs of our customers and improving our operating efficiencies." The Sanmina-SCI's management has determined, and the audit committee of the company's Board of Directors concurred, restatement of the company's historical financial statements will be necessary because the company will need to record additional stock-based compensation expenses as a result of the findings of the Special Committee. Sanmina-SCI believes that substantially all of these charges will be of a non-cash nature. The company has, in consultation with its independent auditors, submitted the proposed accounting treatment for the charges to the Office of the Chief Accountant of the Securities and Exchange Commission. Because of the pending OCA review, the company has not yet determined conclusively the amount of such charges, the resulting tax impact, or which periods may require restatement. The company expects to file its restated financial statements as soon as reasonably practicable after the OCA responds to the company's submission. In addition, the company's management has met with the Listings Qualification Panel of the Nasdaq Stock Market regarding the company's plan for completing its late SEC filings and returning to compliance with the listing qualification requirements of the Nasdaq Stock Market. The Listings Qualification Panel has not yet ruled on the company's request. Sanmina-SCI continues to cooperate with the SEC and the United States Attorney's Office for the Northern District of California in response to the Security and Exchange Commission's informal inquiry and the United States Attorney's Office's grand jury subpoena for documents relating to the company's past practices for granting employee stock options. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in TCR-Europe on Aug. 28, Fitch Ratings downgraded Sanmina-SCI Corp.: -- Issuer Default Rating to 'B+' from 'BB-' Fitch also placed Sanmina's IDR, as well as these ratings, on Rating Watch Negative: -- Senior subordinated debt 'B+' -- First lien senior secured credit facility 'BB+'. SANMINA-SCI: Inks US$600 Million Term Loan with Bank Syndicate -------------------------------------------------------------- Sanmina-SCI Corporation entered into a credit agreement with: -- Bank of America, N.A., as Administrative Agent; -- Citibank, N.A., as Syndication Agent; -- Deutsche Bank AG Cayman Islands Branch, as Documentation Agent; and -- Banc of America Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Joint Book Managers and Joint Lead Arrangers. The Credit and Guaranty Agreement, dated as of Oct. 13, 2006, provides for a US$600 million senior unsecured term loan, which matures on Jan. 31, 2008. The Company drew down the US$600 million term loan simultaneously with the closing of the transaction. A portion of the proceeds of the term loan were used on Oct. 13, to effect, in accordance with the terms thereof, the satisfaction and discharge of the Indenture, dated as of March 15, 2000, by and between SCI Systems, Inc. and the trustee, pursuant to which SCI Systems, Inc. issued its 3% Convertible Subordinated Notes due 2007. In connection with the satisfaction and discharge of the Indenture, US$532,875,000 in cash was deposited with the trustee, which amount is equal to the principal and interest scheduled to be due and owing on the Notes on their maturity date, which is March 15, 2007. The Company intends to use the remaining proceeds for working capital and general corporate purposes. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in TCR-Europe on Aug. 28, Fitch Ratings downgraded Sanmina-SCI Corp.: -- Issuer Default Rating to 'B+' from 'BB-' Fitch also placed Sanmina's IDR, as well as these ratings, on Rating Watch Negative: -- Senior subordinated debt 'B+' -- First lien senior secured credit facility 'BB+'. SANMINA-SCI: Stock Option Probe Cues Moody's to Put Ba2 Ratings --------------------------------------------------------------- Moody's assigned a Ba2 rating to Sanmina-SCI Corp.'s proposed US$600 million unsecured term loan facility due 2008. The proceeds of the proposed US$600 million term loan will be used to finance US$525 million of Sanmina's 3% convertible subordinated notes due 2007. Sanmina's corporate family rating of Ba2 and all of its other outstanding ratings will remain under review for possible downgrade. Likewise, the new Ba2 rating on the proposed term loan facility will also be placed under review for possible downgrade. Moody's notes that Sanmina's debt ratings were placed under review for possible downgrade on Aug. 14 following Sanmina's announcement of the on-going investigation into its stock option administration practices and its confirmation that Sanmina would not be able to file with the Securities and Exchange Commission its 10-Q for the quarter ended July 1, 2006, by the required deadline as a result of the investigation. The ratings for the new facility reflects both the overall probability of default of the company, to which Moody's assigned a PDR of Ba2, and a loss given default of LGD3. Sanmina announced on Oct. 12 that it has concluded its internal investigation of its stock options practices and that most stock option grants to executives and employees between 1997 and 2006 were not correctly dated. As a result, Sanmina will restate its financial statements for the past 9 fiscal years, though the amount of restatement has not been quantified. Moody's understands that cash impact from the restatement is not likely to be material. Although the conclusion of its internal investigation is an important step toward resolution, Moodys' notes that Sanmina is still under SEC and DOJ investigation, and has yet to file its financial statements for the July 1, 2006 quarter, a violation of its borrowing program covenant. Sanmina has obtained consent waivers from all of its debt holders, except for the holders of its 2007 subordinated convertible notes, which will be refinanced from the proceeds of the proposed term loan. Until Sanmina is able to file its financial statements within the waiver period granted by the lenders, Moody's concern over potential liquidity will remain and thus Sanmina's ratings continue to be under review for possible downgrade. Sanmina cited a general systemic controls failure as the cause for options dating errors and plans to implement a number of changes to improve internal control and accuracy of financial accounting. This controls failure raises concerns regarding the quality of corporate governance and controls at Sanmina. Assessment of these risks, as well as continued exposure to regulatory, legal and litigation risk, will be integrated into the ratings review. Moody's could move the ratings down if further concerns regarding weakness in internal controls, disclosure, or accounting controls emerge, if legal or regulatory action yielded material costs or effected senior management, or if concerns over its liquidity were to surface. Conversely, upon a favorable resolution of the SEC and DOJ investigations, and satisfactory liquidity coupled with the filing of the July 2006 quarterly report with non-material restatements within the consent waiver period, Sanmina's ratings could be confirmed. Leverage and credit metrics will not change as a result of the current refinancing. Pro forma this transaction, leverage is expected to be about 3.8 times to EBITDA (pre-restatement) and EBITDA to interest coverage about 3.4 times, again pre- restatement. Sanmina remains well positioned as a tier-one EMS provider and plays a critical role in the electronics supply chain. Ratings/assessments assigned and placed under review for downgrade: * US$600 million senior unsecured term loan due 2008 at Ba2 (LGD3, 45%) Ratings/assessments under review for downgrade include: * Corporate family rating at Ba2; * Probability-of-default rating at Ba2; * US$400 million senior subordinated notes due 2013 at Ba3 (LGD5, 85%); * US$600 million senior subordinated notes due 2016 at Ba3 (LGD5, 85%); * SCI Systems Inc.'s US$525 million 3% convertible subordinated notes due 2007 (guaranteed by Sanmina) at B1 (rating to be withdrawn upon refinancing); and * SGL-1 speculative grade liquidity rating. Headquartered in San Jose, California, Sanmina-SCI Corp. is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. SANMINA-SCI: Fitch Lowers Sr. Subordinated Debt to B/RR5 -------------------------------------------------------- Fitch Ratings downgraded Sanmina-SCI Corp.'s Senior subordinated debt to B/RR5 from B+/RR4. Fitch also assigned BB+/RR1 rating to US$600 million term loan expiring on January 2008. The ratings on senior secured, senior subordinated and these ratings remain on Rating Watch Negative: -- Issuer Default Rating B+; and -- First lien senior secured credit facility BB+/RR1. Fitch's action affects approximately US$1.6 billion of total debt securities, pro forma for the issuance of the US$600 million term loan due January 2008 and redemption of US$525 million of subordinated convertible debentures due March 2007. The senior subordinated downgrade reflects Sanmina layering US$600 million of senior unsecured debt on top of the senior subordinated debt, resulting in lower recovery prospects for the subordinated debt. Fitch estimates recovery for the subordinated notes would decline to 11%-30% from 31%-50% prior to the refinancing, resulting in an RR5 recovery rating. The BB+/RR1 ratings for the senior unsecured term loan reflect Fitch's estimation that the unsecured debt will recover 100% in a distressed scenario. Fitch believes recovery parity between the senior unsecured and senior secured debt is supported by the fact that the lending group for the term loan is essentially the same as that of the senior secured credit facility and maturity date of the term loan, January 2008, is well ahead of the maturity of the credit facility, December 2008. The Recovery Ratings and notching reflect Fitch's recovery expectations under a distressed scenario, as well as Fitch's expectation that the enterprise value of Sanmina, and hence, recovery rates for its creditors will be maximized in liquidation rather than in restructuring. In estimating Sanmina's liquidation value under a distressed scenario, Fitch applied advanced rates of 80%, 20% and 10% to Sanmina's current balance of accounts receivable, inventory and property, plant and equipment, respectively. That leads to a distressed enterprise value estimate of approximately US$1.2 billion, providing the basis for a waterfall analysis to determine recovery ratings. The Negative Rating Watch continues to reflect Sanmina's delayed filing of its 10Q and compliance certificates for the quarter ended July 1, 2006 and corresponding non-compliance with NASDAQ's filing requirements as well as continuing investigations by the SEC and a federal grand jury into the company's stock option administration practices dating back to Jan. 1, 1997. Sanmmina recently announced the conclusion of its own internal investigation, which determined that most options awarded between 1997 and 2006 were not correctly dated and accounted for. Fitch believes that a resolution of the stock option investigations and satisfactory filing of Sanmina's 10Q as well as compliance certificates is likely to resolve the Negative Rating Watch status. Pro forma for the refinancing Fitch believes liquidity was sufficient as of July 1, 2006 and supported by approximately US$563 million of cash and equivalents and an undrawn US$500 million senior secured revolving credit facility due 2008, which is not available for refinancing purposes. Sanmina's US$200 million receivables sales facility due 2007 also supports liquidity. Fitch estimates that total debt on a pro forma basis is approximately US$1.6 billion and consists primarily of: -- US$600 million senior unsecured term loan due January 2008; -- US$400 million of 6.75% senior subordinated notes due March 2013 (callable in 2009); and -- US$600 million of 8.125% senior subordinated notes due March 2016; but excludes US$525 million of 3% convertible subordinated notes which are being redeemed. =========== F R A N C E =========== ALCATEL SA: Inks Network Deal with Vimpelcom's Mobitel Unit ----------------------------------------------------------- Alcatel S.A. has been awarded a contract by Mobitel, a unit of OJSC Vimpel-Communications, to deploy a new mobile network in Georgia. The project will consist of covering the whole territory of Georgia with a new mobile GSM/GPRS/EDGE network, while preparing for the 3G/UMTS and/or WiMAX multi-standard introduction. Once the project will be completed Alcatel's mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers in Georgia. Under the terms of this contract, Alcatel will deliver its industry leading Alcatel Evolium GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel will also deliver a high availability IP/MPLS network based on the Alcatel 7710 Service Router. "We consider Georgia as one of the strategic mobile markets and hope to win a leading position in this market," Sergey Avdeev, executive vice-president and chief technical officer of VimpelCom, said. "To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame. I am confident that Alcatel's rich experience in wireless technologies will enable us to achieve this challenging plan." "This contract not only gives Alcatel a solid footprint in the mobile market in Georgia but it also expands our long term successful cooperation with VimpelCom and our presence in the overall CIS market," Johan Vanderplaetse, vice-president for Alcatel activities in the Commonwealth of Independent States, said. "The CIS High Growth Economies have proved to be a dynamic region for mobile communication and we are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection." About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. About Alcatel Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on April 5, Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. BALL CORP: Closing Two North American Manufacturing Facilities -------------------------------------------------------------- Ball Corp. disclosed that by the end of the year it will close two manufacturing facilities in North America, as part of the realignment of Metal Food & Household Products, Americas -- a segment of the company -- following the acquisition earlier this year of US Can Corporation. Ball Corp. will close a leased facility in Alliance, Ohio -- one of the 10 manufacturing locations in the US acquired from US Can. The plant manufactures plastic pails, primarily for paints and chemicals. Equipment in the facility will be relocated to other Ball plants in Ohio and Georgia. Meanwhile, Ball Corp.'s Canadian subsidiary will close a metal food can manufacturing plant in Burlington, Ont., which was part of Ball Corp.'s metal food can operations prior to the acquisition. The facility produces three-piece steel food can bodies and ends, and does metal cutting and coating. Some equipment from the plant will be relocated to other Ball Corp. facilities, while the rest will be sold or scrapped. The closure of the Alliance plant will be treated as an opening balance sheet item related to the US Can acquisition. Ball Corp. will record a fourth quarter after-tax charge of approximately US$25 million related to equipment disposal and the Burlington closure. John A. Friedery -- the senior vice president and chief operating officer of Ball Packaging Products, Americas -- said that the Alliance and Burlington closure costs will be cash flow neutral after tax benefits and proceeds from the sale of fixed assets and will reduce operating costs by US$8 million per year, starting in 2007. Mr. Friedery noted, "The opportunity to consolidate manufacturing operations into fewer facilities is critical to us realizing the synergies we knew were achievable following the acquisition. We are carefully studying our entire manufacturing structure and expect there will be other opportunities to improve efficiencies by further realigning production capacities. We anticipate work on our realignment plan to be completed during the fourth quarter, with implementation continuing in 2007." Mr. Friedery said employees at the facilities being closed will be paid severance and offered transition services. The Alliance plant has about 40 employees, while the Burlington plant has 300 workers. Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products. It owns Ball Aerospace & Technologies Corp. -- a developer of sensors, spacecraft, systems and components for government and commercial customers. Ball Corp. reported sales of US$5.7 billion in 2005 and the company employs about 13,100 people worldwide, including Argentina, Germany, France and the United Kingdom. * * * Moody's Investors Service assigned ratings to Ball Corp's US$500 million senior secured term loan D, rated Ba1, and US$450 million senior unsecured notes due 2016-2018, rated Ba2. It also affirmed existing ratings, which include Ba1 Ratings on US$1.475 billion senior secured credit facilities and US$550 million senior unsecured notes due Dec. 12, 2012. Moody's said the ratings outlook is stable. Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured credit facilities, and 'BB' senior unsecured notes. Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit rating on Ball Corp. All ratings were placed in March 2006. BALL 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 U.S. non-paper packaging sector this week, the rating agency confirmed its Ba1 Corporate Family Rating for Ball Corporation. Additionally, Moody's 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$715 million sr. secured multi-currency revolver due 2011 Ba1 Ba1 LGD4 52% US$35 million sr. secured revolver due 2011 Ba1 Ba1 LGD4 52% US$157.2 million sr. secured term loan A due 2011 Ba1 Ba1 LGD4 52% US$447.7 million sr. secured term loan B due 2011 Ba1 Ba1 LGD4 52% US$133.5 million sr. secured term loan C due 2011 Ba1 Ba1 LGD4 52% US$500 million sr. secured term loan D due 2011 Ba1 Ba1 LGD4 52% US$550 million sr. unsecured 6.875% notes due Dec 2012 Ba2 Ba1 LGD4 52% US$450 million sr. unsecured notes due Mar 2018 Ba2 Ba1 LGD4 52% 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 Broomfield, Colorado, Ball Corporation -- http://www.ball.com/-- offers metal and plastic packaging to the beverage and food industries worldwide. It offers aluminum and steel beverage cans for carbonated soft drinks, beer, energy drinks, and other beverages. JLG INDUSTRIES: Sells Business to Oshkosh for US$3.2 Bln in Cash ---------------------------------------------------------------- Oshkosh Truck Corp. has signed a definitive agreement to acquire all outstanding shares of JLG Industries Inc. for US$28 per share. Total consideration, including transaction costs and assumed debt, is US$3.2 billion in cash on a fully diluted basis. This transaction will create a US$6 billion global specialty vehicle manufacturer. "We have consistently executed strategies to grow this company, creating significant shareholder value during the last decade," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer. "The acquisition of JLG is the latest broad- based initiative in the continuing transformation of Oshkosh Truck Corporation. It is aligned with our historic acquisition strategy as we expand into complementary markets and it will be instrumental in building our global focus and scale that are increasingly needed to continue to be successful. It also meets our major acquisition criteria, which include market leadership, strong management, double digit growth opportunities and the expectation of earnings in excess of our cost of capital." JLG had US$2.3 billion in revenues during fiscal 2006 and has estimated a 20 to 25 percent increase in sales in fiscal 2007. It has the top market position in North America and Europe for aerial work platforms and is the top producer of telehandlers in the United States. JLG placed 22nd on FORTUNE magazine's 2006 list of the 100 Fastest-Growing Companies. The ranking was based on three-year profit and sales growth through the first quarter of 2006 and three-year total return to shareholders. "This transaction is a good fit for JLG," stated William M. Lasky, chairman, president and chief executive officer of JLG. "Oshkosh has a similar philosophy of offering premier products, creating strong market positions and delivering after-sales service and support. For the JLG team, this combination offers additional growth opportunities. For our customers, JLG will become an even stronger partner in their future success. We look forward to working with the Oshkosh management team to ensure a rapid and seamless transition." "We are excited about the addition of this market-leading, global company and expect a smooth integration into the Oshkosh family. At the same time, we expect to realize substantial purchasing and logistical synergies, while benefiting from JLG's already outstanding manufacturing operations. We have a long history of successful acquisitions and expect to build on that history," Mr. Bohn added. Details of the Transaction The transaction is expected to be modestly accretive to Oshkosh's earnings per share in fiscal 2007 after giving effect to estimated non-cash charges relating to amortization of acquired intangibles and other one-time accounting and transaction related costs. Oshkosh will finance the transaction with a US$3.5 billion senior credit facility provided by Bank of America, N.A. and JPMorgan Chase Bank, N.A. and retire most of JLG's currently outstanding debt. The acquisition has been approved by the Board of Directors of each company and is subject to customary closing conditions, including approval under Hart-Scott-Rodino and similar laws outside the U.S. and the approval by the shareholders of JLG. The transaction is expected to be completed within ninety days. Upon completion of the transaction, JLG will become the largest of four business segments of Oshkosh. It continues the diversification of the company. In fiscal 2008, the first full fiscal year of Oshkosh's expected ownership of JLG, Oshkosh estimates that JLG will represent approximately 40 percent of its consolidated sales and operating income. "We are pleased to be bringing a solid company like JLG into Oshkosh Truck. Their product leadership and innovative culture will be a great fit with our approach. It is evident from the strong reactions of both Boards that we have an opportunity to do something very special," added Mr. Bohn. About Oshkosh Bases in Oshkosh, Wisconsin, Oshkosh Truck Corp. -- http://www.oshkoshtruckcorporation.com/-- designs, manufactures, and markets various specialty commercial, fire and emergency, and military trucks; truck bodies; mobile and stationary compactors, and transfer stations; and portable and stationary concrete batch plants worldwide. About JLG Industries JLG Industries, Inc. -- http://www.jlg.com/-- produces access equipment (aerial work platforms and telehandlers) and highway- speed telescopic hydraulic excavators. JLG's manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents. * * * As reported in the Troubled Company Reporter on May 24, Moody's Investors Service upgraded the debt ratings of JLG Industries, Inc. -- Corporate Family Rating to Ba3 from B1, Senior Unsecured Notes to B1 from B2, and Senior Subordinate Notes to B2 from B3. The outlook is changed to stable from positive. METALDYNE CORP: Lockup Agreement Cues Moody's to Change Review -------------------------------------------------------------- Moody's Investors Service changed the review of the ratings of Metaldyne Corp. and its wholly owned subsidiary, Metaldyne Company LLC, to direction uncertain from under review for possible upgrade. The change is prompted by published reports that Metaldyne's 11% senior subordinated noteholders have entered into an agreement which provides that its signatories will not tender the notes nor provide any requested consent absent an approval by 90% of the principal amount of the signatories of the lockup agreement, and at least 2/3 of the number of signatories of the lockup agreement. Each of the signatories to the lockup agreement will be required to tender or provide consents if a supermajority of the signatories to the lockup agreement accepts a tender or provides consent. This agreement decreases Metaldyne's flexibility in tendering or renegotiating the 11% senior subordinated notes in its attempt to complete the earlier announced agreement for Metaldyne to be acquired by Asahi Tec Corporation. The ratings under review, direction uncertain are: Metaldyne Corp.: * Corporate Family Rating, Caa1; * US$150 million of 10% guaranteed senior unsecured notes due November 2013, Caa2 (LGD4, 69%); * US$250 million of 11% guaranteed senior subordinated notes due June 2012, Caa3 (LGD6, 92%); Metaldyne Co. LLC * B2 (LGD2, 25%) rating for Metaldyne LLC's guaranteed senior secured credit facilities, consisting of: -- US$400 million (approximately US$375 million remaining) guaranteed senior secured tranche D term loans due December 2009; -- US$50 million guaranteed senior secured revolving credit facility due August 2011 (or December 2009 if the term loan is not refinanced by October 2009); and -- US150 million Synthetic L/C Facility due August 2011 (or December 2009 if the term loan is not refinance by October 2009). The last rating action was on Sept. 1 when the ratings were placed under review for possible upgrade based on the announcement that Metaldyne had signed an agreement to be acquired by Asahi, and on the potential financial and strategic benefits that might result from the transaction. Moody's review noted, however, that the completion of the transaction is subject to certain conditions including the successful tender of a portion of the company's existing public debt and the granting of waivers for the change of control language in the bond indentures. The decision by the holders of the senior subordinated notes to enter into the lockup agreement could increase the financial costs of proceeding with the acquisition or could result in a failure to achieve the waivers necessary for the transaction to proceed. Moody's review will continue to consider the financial benefits and strategic business opportunities, which could come to Metaldyne under a business combination with Asahi Tec. The review will also consider the current adverse business environment in the auto components sector, including recently announced production cutbacks in North America. Metaldyne Corp., headquartered in Plymouth, Michigan, is a manufacturer of highly engineered products for the global light vehicle market. Metaldyne designs, engineers and assembles metal-formed and engineered products used in transmissions, engines and chassis of vehicles. The company's annual revenues currently approximate US$1.9 billion. Ownership of Metaldyne is controlled by private equity sponsor Heartland Industrial Partners LP. ============= G E O R G I A ============= ALCATEL SA: Inks Network Deal with Vimpelcom's Mobitel Unit ----------------------------------------------------------- Alcatel S.A. has been awarded a contract by Mobitel, a unit of OJSC Vimpel-Communications, to deploy a new mobile network in Georgia. The project will consist of covering the whole territory of Georgia with a new mobile GSM/GPRS/EDGE network, while preparing for the 3G/UMTS and/or WiMAX multi-standard introduction. Once the project will be completed Alcatel's mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers in Georgia. Under the terms of this contract, Alcatel will deliver its industry leading Alcatel Evolium GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel will also deliver a high availability IP/MPLS network based on the Alcatel 7710 Service Router. "We consider Georgia as one of the strategic mobile markets and hope to win a leading position in this market," Sergey Avdeev, executive vice-president and chief technical officer of VimpelCom, said. "To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame. I am confident that Alcatel's rich experience in wireless technologies will enable us to achieve this challenging plan." "This contract not only gives Alcatel a solid footprint in the mobile market in Georgia but it also expands our long term successful cooperation with VimpelCom and our presence in the overall CIS market," Johan Vanderplaetse, vice-president for Alcatel activities in the Commonwealth of Independent States, said. "The CIS High Growth Economies have proved to be a dynamic region for mobile communication and we are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection." About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. The group wholly owns Mobitel in Georgia. About Alcatel Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in TCR-Europe on April 5, Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. VIMPEL-COMMUNICATIONS: Taps Alcatel to Set up Mobitel's Network ---------------------------------------------------------------- Mobitel, a unit of OJSC Vimpel-Communications, awarded Alcatel S.A. a contract to deploy a new mobile network in Georgia. The project will consist of covering the whole territory of Georgia with a new mobile GSM/GPRS/EDGE network, while preparing for the 3G/UMTS and/or WiMAX multi-standard introduction. Once the project will be completed Alcatel's mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers in Georgia. Under the terms of this contract, Alcatel will deliver its industry leading Alcatel Evolium GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel will also deliver a high availability IP/MPLS network based on the Alcatel 7710 Service Router. "We consider Georgia as one of the strategic mobile markets and hope to win a leading position in this market," Sergey Avdeev, executive vice-president and chief technical officer of VimpelCom, said. "To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame. I am confident that Alcatel's rich experience in wireless technologies will enable us to achieve this challenging plan." "This contract not only gives Alcatel a solid footprint in the mobile market in Georgia but it also expands our long term successful cooperation with VimpelCom and our presence in the overall CIS market," Johan Vanderplaetse, vice-president for Alcatel activities in the Commonwealth of Independent States, said. "The CIS High Growth Economies have proved to be a dynamic region for mobile communication and we are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection." About Alcatel Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia- based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. The outlook is stable. ============= G E R M A N Y ============= ATRO GMBH: Claims Registration Ends October 27 ---------------------------------------------- Creditors of ATRO GmbH have until Oct. 27 to register their claims with court-appointed provisional administrator Gabriele Czech. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 28 at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Augsburg Law Courts Meeting Room 162 Alten Einlass 1 86150 Augsburg, 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 Augsburg opened bankruptcy proceedings against ATRO GmbH on Aug. 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ATRO GmbH Attn: Franz Beese, Manager Grimmstr. 16 86154 Augsburg, Germany The administrator can be contacted at: Gabriele Czech Spicherer Str. 26 86157 Augsburg, Germany DIGITAL4U.DK-DEUTSCHLAND: Claims Registration Ends Oct. 25 ---------------------------------------------------------- Creditors of Digital4u.dk-Deutschland GmbH have until Oct. 25 to register their claims with court-appointed provisional administrator Susanne Mueller-Heeg. Creditors and other interested parties are encouraged to attend the meeting at 9:14 a.m. on Nov. 15 at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Flensburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Flensburg opened bankruptcy proceedings against Digital4u.dk-Deutschland GmbH on Aug. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Digital4u.dk-Deutschland GmbH Industrieweg 35 24955 Harrislee, Germany Attn: Tony Rahmeh, Manager Edelgavevej 26 2765 Smorum, Denmark The administrator can be contacted at: Susanne Mueller-Heeg Rathausstrasse 1 24937 Flensburg, Germany DURA AUTOMOTIVE: Unit Unable to Make Interest Payment on Notes -------------------------------------------------------------- Dura Operating Corp., a wholly owned subsidiary of Dura Automotive Systems Inc., will not make the US$17,250,000 interest payment due on Oct. 16, 2006 on Dura Operating's outstanding 8-5/8% Senior Notes due 2012. The Indenture relating to the Notes provides a 30-day grace period before the nonpayment of interest due on the Notes will constitute an event of default under the Indenture. Upon any event of default, BNY Midwest Trust Company, the Trustee under the Indenture, or the holders of at least 25% in principal amount of the outstanding Notes, would be entitled to declare all of the Notes to be due and payable immediately. In addition, under the Indenture, following the thirty-day grace period, the Trustee could pursue any available remedy to collect the payment of principal and interest on the Notes or to enforce the performance of any provision of the Notes or the Indenture. Under the Indenture, the Dura Operating must pay interest on overdue installments of interest without regard to any grace period at the rate of 9-5/8% per annum. Currently US$400 million in aggregate principal amount of the Notes is outstanding. Event of Default The failure by Dura Operating to make the interest payment on the Notes will constitute an immediate event of default under Dura Operating's asset-based revolving credit facility. The failure by the Dura Operating to make the interest payment on the Notes upon the expiration of the 30 day grace period will also constitute an event of default under Dura Operating's outstanding 9% Senior Subordinated Notes due 2009 and Second Lien Term Loan. Upon any such event of default, the applicable trustee or administrative agent, as the case may be, or the holders of at least 25% in principal amount of the outstanding series of Senior Subordinated Notes or Second Lien Term Loan, will be entitled to declare all such indebtedness to be due and payable immediately. Dura Automotive had previously said that it is evaluating its capital structure with a focus on reducing its long-term debt. This financial restructuring would be in addition to the comprehensive operational restructuring that Dura Automotive is undertaking in response to challenging industry conditions. Industry conditions continue to deteriorate, with announcements over the past several weeks from all three North American OEMs of additional significant production cuts. In addition, raw material prices have continued to be at or near record levels. Dura expects that the deterioration of industry conditions will require it to undertake a debt restructuring in the near term. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- designs and manufactures driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. In Europe, the company maintains operations in Germany, the United Kingdom, France, Spain, Portugal, Czech Republic, Slovakia and Romania. DURA AUTOMOTIVE: Non-Payment of Interest Cues S&P's D Rating ------------------------------------------------------------ Standard & Poor's Ratings Services took the following rating actions on Dura Automotive Systems Inc. and its subsidiary, Dura Operating Corp., following the company's announcement that it will not make a required bond interest payment that is due [Mon]day: -- the corporate credit rating on Dura was lowered to 'D' from 'CCC'; -- the rating on Dura Operating's US$400 million senior notes due 2012, for which the interest payment is due, was lowered to 'D' from 'CC'; -- Dura's senior secured debt rating was lowered to 'CC' from 'CCC+' and placed on CreditWatch with negative implications. The '1' recovery rating on the secured debt was affirmed; and -- Dura's 'CC' subordinated debt rating was placed on CreditWatch with negative implications. Dura has suffered from poor operating results in recent years because of: -- lower vehicle production from its large U.S. customers, -- unfavorable product mix, -- higher-than-expected raw material costs, pricing pressure, and -- a bloated overhead cost structure relative to current revenue generation. Dura's recent financial results were substantially below prior- year levels: During the second quarter, EBITDA was down US$29 million (60%) from last year, and the company's free cash flow was negative US$50 million. Although automotive industry conditions were difficult during the second quarter, Dura's performance was much worse than expected. Industry pressures have intensified since the second quarter, and Standard & Poor's believes current financial performance has deteriorated further. Dura is evaluating its capital structure in light of earnings and cash flow pressures. The company exercised its right to defer dividend payments on its preferred stock earlier this month to preserve cash. "Dura has a 30-day grace period to make the interest payment on its senior notes before default would occur, but we do not expect the company to make the interest payment. We believe the risk of a bankruptcy filing in the next few weeks is high. If the company were to file for bankruptcy, the senior secured and subordinated debt ratings on the company would be lowered to 'D'," said Standard & Poor's credit analyst Martin King. ESTHERELL GMBH: Claims Registration Ends October 31 --------------------------------------------------- Creditors of Estherell GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Georg Welslau. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Estherell GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Estherell GmbH Immanuelstr. 3 32427 Minden, Germany Attn: Heinz Penning, Manager Lange Wand 5 32425 Minden, Germany The administrator can be contacted at: Georg Welslau Bismarckstr. 43 32427 Minden, Germany GFC GRUNDSTUECKSVERWALTUNGS: Creditors' Meeting Set for Oct. 26 --------------------------------------------------------------- The court-appointed provisional administrator for GFC Grundstuecksverwaltungsgesellschaft mbH & Co. Nahversorgungszentrum Leuthoffstrasse KG, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Oct. 26. 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 9:50 a.m. on Jan. 11, 2007, at the same venue. Creditors have until Nov. 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against GFC Grundstuecksverwaltungsgesellschaft mbH & Co. Nahversorgungszentrum Leuthoffstrasse KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GFC Grundstuecksverwaltungsgesellschaft mbH & Co. Nahversorgungszentrum Leuthoffstrasse KG Keithstrasse 26 10787 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany GREENBRIER COS: Buys Meridian Rail for US$227.5 Million Cash ------------------------------------------------------------ The Greenbrier Companies entered into a definitive agreement to acquire the stock of Meridian Rail Holdings Corp., which principally conducts business under the name Meridian Rail Services, from Stamford, Conn.-based private equity firm, Olympus Partners. The purchase price of the acquisition will be US$227.5 million in cash, plus or minus working capital adjustments. The acquisition is subject to customary closing conditions and is expected to close within the next 30 days. It is expected to be immediately accretive to Greenbrier's fiscal 2007 earnings. Meridian is a leading supplier of wheel maintenance services to the North American freight car industry, with over 25 years' experience. Operating from six strategically located wheel facilities, Meridian supplies replacement wheel sets and axle services to approximately 170 freight car maintenance locations where worn or damaged wheels, axles, or bearings are replaced. Meridian also operates a coupler reconditioning facility and performs railcar repair at one of its wheel services facilities. With the addition of Meridian's facilities, Greenbrier believes its expanded network of 10 strategically located wheelshops and 20 repair, refurbishment and replacement parts facilities provides a competitive advantage and economies of scale. The combined entities will become the largest wheel service network and one of the largest purchasers of wheels in North America. Together, the two companies' facilities will create an end-to- end shop network spanning much of the continental United States and Mexico. As network partners over the past seven years, Meridian and Greenbrier have provided certain customers total wheel set inventory management, utilizing proprietary, web-enabled transaction and reporting systems. Through these systems, Meridian's and Greenbrier's customers realize freight as well as administrative savings on all types of components and procured items. Customers include various Class 1 railroads, the largest of which is Union Pacific Railroad which, over the past seven years, has outsourced all wheel services to Meridian in partnership with Greenbrier. Over the last 12 months Meridian has generated approximately US$225 million in revenues. Headed by chief executive officer, Rick Turner, Meridian will maintain its current management team and a workforce of approximately 300 personnel. Mr. Turner will become president of Greenbrier's Wheel Services group, reporting to Tim Stuckey, president of Greenbrier's Rail Services group. "The Meridian acquisition further reinforces Greenbrier's strategy to distinguish itself within the rail industry with an integrated, diversified business model," William A. Furman, Greenbrier's president and chief executive officer, said. "The acquisition, along with our recent acquisition of Railcar America, supports our strategy to continue to grow our railcar repair, refurbishment, maintenance and replacement parts businesses, which are less cyclical and higher margin than our new railcar manufacturing business. In North America, large customers in rail transportation are moving towards relationships with fewer suppliers who can provide a comprehensive set of freight railcar products and support services. The increased emphasis by railroads on velocity and efficient capacity utilization will bring rapid change and favor Greenbrier's business model." Mr. Furman continued, "We believe with our integrated business strategy and an expanded network of 30 repair shops, wheel service centers, and replacement parts locations, there will be meaningful economies of scale, as well as significant revenue synergies and opportunities to grow our overall business. As an example, our parts business now consists of wheel sets, axles, boxcar doors and roofs, end of car cushioning units, sideframes, bolsters, couplers, and yokes. We can now provide a more robust and comprehensive set of parts and services throughout our repair shop network, our new car manufacturing business, and by serving our owned and managed fleet of 145,000 railcars. Similarly, we can also maximize value from recycled parts on railcars which we reengineer, repair or refurbish." Mr. Furman concluded, "The rail freight industry in North America currently consumes approximately 1.5 million wheels a year, and replacement demand has been growing steadily for many years, even during railroad industry downturns. We expect demand for wheel services to remain strong. Demand is forecast to grow in the foreseeable future, driven by fundamental economic forces that have driven growth in rail traffic, strong equipment utilization, increased pressure on railroad service design, and wear and tear on rolling stock. Following the Meridian acquisition, Greenbrier's Rail Services group is expected to generate close to US$400 million in annual revenues, nearly 4 times greater than fiscal 2006." Tim Stuckey, president of Greenbrier's Rail Services group, added, "Meridian and Greenbrier have been long-standing partners in the wheel services business, serving key freight car customers, such as Union Pacific Railroad, together over the past seven years. Meridian and Greenbrier will continue to provide Union Pacific almost 130,000 wheel sets per year under a multi-year contract. We are excited to have Rick Turner and the rest of the Meridian team join Greenbrier, bringing their exceptional wheel shop capabilities to our Rail Services group." Mark Rittenbaum, senior vice president and treasurer of Greenbrier, noted, "Concurrent with this acquisition, Greenbrier will increase its revolving line of credit with a US$275 million, five-year facility, led by Bank of America, to support this acquisition and provide additional liquidity. As part of our financing strategy, we intend to monetize some of our railcar leasing investments in fiscal 2007, as we reinvest these proceeds in recent acquisitions. We remain confident about Greenbrier's strong financial position, and its ability to generate significant operating cash flow and earnings growth potential. In the near term, we will continue to focus on integrating our recent acquisitions, while also selectively seeking opportunities to grow our business, both organically and through acquisition." Headquartered in Birmingham, Alabama, Meridian Rail Services supplies both new and reconditioned wheel sets to railroads, maintenance centers and repair shops across the U.S. and Mexico. It operates six full service freight car wheel facilities in Chicago Heights, IL; Corsicana, TX; Kansas City, KS; Lewistown, PA; San Bernardino, CA; and Mexico City, Mexico. Meridian also operates a coupler reconditioning facility in Chicago, IL and a car repair facility in Mexico City, Mexico. Greenbrier operates four full service freight car wheel facilities in Tacoma, WA; Pine Bluff, AR; Portland, OR; and Sahagun, Mexico. Headquartered in Stamford, Conn., Olympus Partners -- http://www.olympuspartners.com/-- is a leading private equity firm managing US$1.7 billion of capital on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs. Olympus emphasizes investments in family businesses, industries in upheaval and orphaned corporate divisions. Headquartered in Lake Oswego, Oregon, The Greenbrier Companies -- http://www.gbrx.com/-- supplies transportation equipment and services to the railroad industry. The Company builds new railroad freight cars in its manufacturing facilities in the U.S., Canada, and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 30 locations (post Meridian acquisition) across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 136,000 railcars. * * * As reported in the Troubled Company Reporter on May 18, 2006, Standard & Poor's Ratings Services assigned its 'B+' rating to The Greenbrier Companies Inc.'s proposed US$85 million convertible note offering, which will mature in 2026. At the same time, Standard & Poor's affirmed its ratings on the Lake Oswego, Oregon-based railcar manufacturer, including its 'BB-' corporate credit rating. S&P said the outlook is stable. GREENBRIER COS: Acquisition Prompts Moody's to Review Ratings ------------------------------------------------------------- Moody's Investors Service placed these ratings of The Greenbrier Companies under review for possible downgrade: -- corporate family of Ba3, -- senior unsecured of B1, LGD4, and -- SGL-2. The review is prompted by Greenbrier's announcement to acquire Meridian Rail Holding Corp. for approximately US$227 million in cash, which is in addition to the recent US$34 million purchase of Rail Car America. Funding the Meridian purchase is expected to increase Greenbrier's debt level by approximately US$140 million to approximately US$540 million. The remainder of the purchase will be from cash on hand. Pro-forma for both acquisitions using company estimates of EBITDA and Moody's standard adjustments, debt to EBITDA would be approximately 3.5x (fiscal year ending Aug. 31, 2006). As the amount and pace of acquisitions have exceeded Moody's expectations of earlier in the year when Greenbrier raised US$100 million of debt, the review will evaluate how this more active acquisition profile could affect funding the expected growth in the leasing portfolio. Moody's review will consider management plans to control potentially rapid asset growth during the company's expansion phase, as continued acquisitions and increased leases could result in even higher debt levels. As well, Moody's will review Greenbrier's plans to integrate these acquisitions into its now considerably larger repair and maintenance business. Greenbrier plans to increase its bank revolving credit facility (to US$275 million), and Moody's speculative grade liquidity rating will consider the company's ultimate capital structure, the amount and quality of the committed bank facility and the stability of cash from operations. Moody's notes that the Meridian acquisition will improve Greenbrier's market position in railcar wheel services, and is expected to close at a competitive acquisition multiple of approximately 6x EBITDA. Combining Meridian's extensive operations with those of Greenbrier -- operations, which have operated in partnership for several years -- will create the nation's largest wheel servicing network for the railroad industry. In addition, the orders and backlog for new railcars for Greenbrier's car building business are expected to remain strong over the near term. New rail car orders are highly cyclical, however, and the cash flow from the now much expanded railcar service business along with the portfolio of leases could be helpful in easing some of the cyclical pressures over time, in Moody's view. The Greenbrier Companies, based in Lake Oswego, Oregon provides services to Class I railroads including railcar manufacturing, leasing and car repair. KONZEPTA GRUNDSTUECKS: Creditors' Meeting Slated for Oct. 30 ------------------------------------------------------------ The court-appointed provisional administrator for KONZEPTA Grundstuecksgesellschaft mbH & Co. DRITTE Spitzkrug- Multi- Center KG, Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on Oct. 30. 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 7:09 a.m. on Jan. 15, 2007, at the same venue. Creditors have until Nov. 16 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against KONZEPTA Grundstuecksgesellschaft mbH & Co. DRITTE Spitzkrug- Multi-Center KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KONZEPTA Grundstuecksgesellschaft mbH & Co. DRITTE Spitzkrug- Multi-Center KG Menzelstr. 17 14193 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany LACKIER- UND TROCKENANLAGEN: Claims Registration Ends October 31 ---------------------------------------------------------------- Creditors of Lackier- und Trockenanlagen Ltd. have until Oct. 31 to register their claims with court-appointed provisional administrator Peter Kiehl. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Nov. 27 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Koblenz Hall 111 Main Law Courts Karmeliterstrasse 14 56068 Koblenz, 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 Koblenz opened bankruptcy proceedings against Lackier- und Trockenanlagen Ltd. on Aug. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Lackier- und Trockenanlagen Ltd. Bleichstrasse 22 56130 Bad Ems, Germany Attn: Renate Herborn, Manager Kirchgasse 18 56103 Bad Ems, Germany The administrator can be contacted at: Peter Kiehl Rathausstrasse 129 56203 Hoehr-Grenzhausen, Germany Tel: 02624/947036 Fax: 02624/947037 LUXFER HOLDINGS: Inks Deal to Reorganize Balance Sheet ------------------------------------------------------ Luxfer Holdings Plc entered into an agreement for the reorganization of its balance sheet with an informal group of holders of the Company's 10.125% Senior Notes due May 1, 2009. The Noteholder Group represents approximately 67% of the total outstanding GBP131.4 million of Notes. The proposed reorganization, if it achieves the requisite approvals, is expected to result in a significant reduction of the Company's debt and interest expense and a consequent reduction in financial risk. The Directors believe that the proposed reorganization will provide the Group with a stable and strengthened capital structure and provide additional free cash flow to invest in targeted growth opportunities and cost saving projects. The Reorganization Agreement provides for the Company's stakeholders to receive: -- Noteholders: Noteholders will be exchanging all of their existing unsecured Senior Notes, including the accrued interest thereon up to the date of the proposed reorganization, and investing GBP3.050 million of cash, in return for GBP71.575 million of new unsecured Senior Notes and 87% of the post reorganization share capital of the Company. Noteholders will also receive GBP8.45 million in cash which they will use to buy out the shares of non- management shareholders. The New Notes will have a new five-year maturity date and be priced with a cash element of Six Month LIBOR+450 basis points and a payment in kind element of 150 basis points accruing on a compound basis from Nov. 1, 2006. The payment in kind element on the New Notes will step down to 100 basis points so long as the Company achieves a rating above CCC+ or Caa1. The Company and Noteholder Group are in the process of agreeing the detailed documentation of the New Notes. The New Notes will be non-callable for the first year after being issued and will be callable by the Company at 103%, 102%, 101% and 100% of par in each subsequent year thereafter. -- Shareholders: Shareholders other than certain management shareholders, holding approximately 85% of current share capital, will receive GBP8.45 million from Noteholders in return for their existing equity stake, equating to approximately 7.4p per share, for both the Company's GBP0.6487 preference and ordinary shares. -- Management: Certain management will exchange their stake of approximately 15% of current share capital in the Company for 13% of the post reorganization share capital, with the economic benefit to a proportion of these shares being dependent on the Company's future success -- Five-percent Cumulative GBP0.6487 preference share capital: As part of the proposed reorganization, the five-percent cumulative preference share capital will be exchanged into a combination of new ordinary share capital and deferred shares, which under International Financial Reporting Standards will reduce the Company's balance sheet liabilities by GBP110.8 million, based on the accrued liability outstanding at June 30, 2006. The Group reported at the half year that it had incurred GBP1.4 million of advisory costs in relation to the proposed reorganization. The total cost for the proposed reorganization has been projected to be approximately GBP5 million. The proposed reorganization will therefore eliminate the preference share liability and achieve a reduction in the Group's outstanding notes of GBP59.825 million, offset by an increase in drawings on senior secured debt facilities of approximately GBP10 million in order to meet the proposed reorganization's funding requirements. The Group currently has a GBP45 million asset backed secured bank facility with Bank of America. Under the proposed indenture terms for the New Notes, the Group will be permitted to incur total senior secured debt of up to GBP60 million, giving the Group the potential to raise a further GBP15 million of liquidity. Plan Implementation The proposed reorganization will affect no other category of creditors. It is intended that the proposed reorganization will principally be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985 between the Company and the holders of its Notes and the proposed reorganization is conditional upon, inter-alia, the Scheme becoming effective. The Noteholder Group includes representatives of nine different institutions and fund managers, four of which comprise an ad hoc committee, which has been in discussions with the Company since April 2006. All the members of the Noteholder Group and the Company have entered into a reorganization agreement, which includes undertakings to support and implement the Scheme and the Reorganization and offers holders of Notes the opportunity to subscribe for New Notes. Holders of Notes who are not yet party to the Reorganization Agreement, but are interested in becoming so, are invited to contact the legal advisers to the Ad Hoc Committee, Bingham McCutchen LLP. A number of the Company's shareholders, including the two major institutional shareholders, have entered into undertakings to support the implementation of the Reorganization, which will also involve a scheme of arrangement amongst the Company's shareholders, and the Reorganization will also be conditional upon that scheme becoming effective. It is expected that the proposed reorganization will be completed at the end of the current financial year, or early in 2007, and further announcements will be made as appropriate. "The terms of the proposed reorganization will greatly enhance the Group's balance sheet and provide the basis of a solid and stable capital structure," Brian Purves, Chief Executive, commented. "The substantial reduction in debt will increase the Group's financial liquidity and thereby place Luxfer in a strong position to develop its business through investing in exciting growth opportunities, whilst continuing to provide the highest possible level of service to its customers." Trading Update Luxfer has in recent years been burdened with high leverage against a backdrop of volatile markets. In response to these pressures, Luxfer has been implementing a profit improvement plan consisting of a series of cost saving projects and price increases. This new Group-wide initiative had been launched by the executive management team in late 2005 and had targeted profit improvement opportunities in 2006 of over GBP15 million to offset significant cost increases. The unaudited interim financial results for the six months ended June 30, 2006, which were released in August this year, demonstrated improvement upon the unaudited six months ended June 30, 2005. The performance was in line with the Group's own forecasts and the profit improvement plan. The unaudited EBITDA for the six months ended June 30, 2006 increased by around GBP1.7 million to GBP13.8 million, an increase of approximately 14% compared to the unaudited six months ended June 30, 2005. The increase was mainly driven by sales growth and successful implementation of cost reduction actions. At the half year the Group reported that higher raw material and U.K. energy costs were a continued cause for concern and the Group had implemented a series of price increases to recover a significant element of these cost increases. As at June 30, 2006 the unaudited interim financial balance sheet reported drawings on senior secured facilities of GBP12 million and GBP2.9 million of cash and short term deposits. Financial Projections In agreeing the Reorganization Term Sheet with the Noteholder Group, financial projections were provided by Luxfer to the Noteholder Group for the remainder of 2006 and for a further 30 months after the proposed reorganization completion date. These projections are subject to the risks associated with forward- looking statements as further explained in the statement at the end of this press release. For the half-year June 30, 2006, the Gas Cylinders and Speciality Aluminium divisions had suffered from a significant rise in aluminium costs, however the Elektron division had increased its unaudited trading profit to GBP6.3 million, from GBP3.7 million as reported in the first half year of 2005. The financial projections for the remainder of 2006 assumed this improvement in the Elektron division continued, whilst the other divisions were able to recover a significant element of the aluminium cost increases through price increases, to enable the Group to attain approximately GBP26 million EBITDA for the full year. Year to date trading is consistent with this forecast. Projections beyond 2006 were used to demonstrate the benefits of potential growth opportunities, additional production automation and the successful completion of the Group's profit improvement plan. The growth opportunities outlined were based on new products the Group has been developing over the last few years, which were described in its December 2005 Report to Noteholders. The financial projections anticipated that the Group would be able to grow rolling last twelve months EBITDA to approximately GBP32 million by 18 months after the Completion Date, increasing to approximately GBP38 million LTM EBITDA after 30 months from the Completion Date. The estimated EBITDA growth in the projections provided to the Noteholder Group assumed the Group was able to increase its sales revenue to approximately GBP245 million for the full year to December 2006, approximately a 6.5% increase when compared to the previous year. The financial projections provided for LTM revenue to grow to approximately GBP265 million by 18 months from the Completion Date, and then to approximately GBP288 million after 30 months from the completion date. Unaudited group revenue for the first half of 2006 was approximately 8% higher than the first half of 2005, driven by a mixture of volume growth and increased selling prices. The increase in divisional revenues over the 30-month financial projection period was roughly in line with proportions to 2005 Group revenues, although the Elektron division's projections assumed a slightly higher level of growth than the other divisions. The Gas Cylinders division remained the largest division by measure of revenue. The financial projections were based on the average price of aluminium and other major input costs remaining at current levels, the US$:GBP exchange rates averaging US$1.78 in 2006, then being US$1.75 for the 30-month period. Based upon such assumptions, over the 30 months following the Completion Date the financial projections included approximately GBP30 million of capital expenditure, with approximately GBP18 million of capital expenditure planned in the first 18 month period following the Completion Date and approximately a further GBP12 million planned for the following 12-month period. The total capital expenditure over the 30-month period was estimated to include approximately an additional GBP14 million more than would have been invested without the proposed reorganization. This increase in capital expenditure was required to support and help generate the growth and cost saving opportunities identified in Luxfer's two main divisions, Gas Cylinders and Elektron. Both these divisions are seen by Luxfer's senior management to have some strong market positions and have been developing new products over the past few years to target future growth markets. Given the growth opportunities being pursued, the Group's manufacturing facilities would need to be expanded, but under the current capital structure the Group is constrained in its ability to meet these long-term capital expenditure requirements with resources directed towards essential and high priority projects only. The EBITDA growth of approximately GBP15 million in the financial projections, from the 2005 result of GBP22.8 million before exceptionals to the projection of approximately GBP38 million after 30 months, included further growth in earnings from the Elektron division, with this division contributing to just over half the Group's improvement through expansion of its zirconium catalyst and magnesium sheet and alloy operations. Around half of the capital expenditure in the 30-month period was assumed to be directed at the Elektron division to support its expansion strategy. The Gas Cylinders division had planned to continue to invest in its composite cylinder and superform operations, with the proposed reorganization enabling it to also benefit from a substantial increase in capital expenditure; slightly less than that of the Elektron division. The projections for the Speciality Aluminium division included only modest levels of additional capital expenditure and profit improvement. The financial projections include opportunities to modernise and automate certain production processes, andover time, several million pounds of cost savings are targeted through automation projects; however the financial projections assumed that the main contributions to increased levels of EBITDA were through expanding sales revenue and production capacity in growth markets. Based on the proposed Reorganized capital structure, the planned capital expenditure and attainment of the projected EBITDA levels above, the Group projected a cash flow before interest, tax payments, reorganization costs and cash proceeds from the Zitzmann disposal, of approximately GBP17 million for the year ending December 2006, with the rolling LTM cash flow being projected to be approximately GBP16 million 18 months from the Completion Date and then rising to approximately GBP22 million after 30 months from the Completion Date. The above EBITDA and cash flow projections had been prepared on the assumption the Zitzmann die-casting business remained part of the Elektron division, though it was highlighted to the Noteholders as a potential strategic disposal, with the objective of reinvesting the proceeds back into the Elektron division to deliver at least a similar level of financial return. The Group sold the Zitzmann die-casting business in early August 2006 with the proceeds being received in September 2006. As yet the proceeds have not been reinvested, although discussions are underway regarding a potential investment opportunity. The improved financial status of the Group would also provide other benefits to aid Luxfer's financial and commercial performance, including a more stable platform for developing long-term customer and supplier relationships, as well as the ability to hedge its aluminium price risk. In the past year the Group had suffered from a lack of hedging capacity and at the end of 2005 it had only hedged forward 16% of its 2006 aluminium purchase requirements compared to 50% to 60% in previous years. The proposed reorganization should enable the Group to return to a more robust level of aluminium price hedging. The cash flow projections did not include any significant increase in the funding requirements of the Group's retirement benefit schemes. The Group's U.K. Pension Trustees have commenced their triennial actuarial review of the Group's U.K. defined benefit pension fund, the results of which are not expected to be finalized by the Trustees and agreed with the Group until early 2007. Once agreed, a formal plan to remediate any deficit has to be submitted and agreed with the U.K. Pensions Regulator. As at June 30, 2006 the unaudited IAS 19 accounting deficit was GBP18.5 million for this U.K. plan and the Group's total unaudited IAS 19 accounting deficits totalled GBP23.9 million. In respect of the proposed reorganization the Company is receiving financial advice from Close Brothers Corporate Finance Limited and legal advice from Cleary Gottlieb Steen & Hamilton LLP. The Ad Hoc Committee is receiving financial advice from Houlihan Lokey Howard & Zukin (Europe) Limited and legal advice from Bingham McCutchen LLP. Conference Call The company will be holding an investor conference call on the proposed reorganization at 3:00 p.m. BST on Oct. 20. Headquartered in Manchester, United Kingdom, Luxfer Holdings PLC -- http://www.luxfer.com/-- specializes in the design and manufacture of high-pressure aluminium gas cylinders, as well as aluminium, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. Luxfer has operations in the United Kingdom, the United States, Australia, Germany, France and the Czech Republic. LUXFER HOLDINGS: Fin'l. Reorganization Cues Moody's Junk Ratings ---------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Luxfer Holdings Plc to Caa3 from Caa2 following notice of their financial reorganization. Moody's concurrently downgraded the rating on the 2009 notes issued by Luxfer to Ca from Caa3. The outlook is stable. The restructure is expected to be executed under a Scheme of Arrangement. Terms of the restructure include cancellation of the existing 2009 notes and the accrued interest thereon to the date of the proposed reorganization and the release of the company from all obligations and liabilities, in exchange for new notes of an aggregate amount of GBP68.525 million. Note holders will also subscribe in cash for additional new notes for an aggregate of GBP3.050 million. Note holders will receive GBP8.45 million in cash, which must be applied to purchase 87% of the total equity in the company, comprising existing ordinary and preference shares. As part of the reorganization the 5% cumulative preference share capital will be exchanged into a combination of new ordinary share capital and deferred shares. Moody's note that under IFRS these preference shares, totaling GBP110.8 million as at June 30, 2006, would be removed from balance sheet liabilities. The balance (13%) of equity will be retained by management and be subject to restrictions. Moody's classifies this reorganization as a default since note holders will incur a shortfall on the par value of the existing notes. In this circumstance Moody's assumes a zero value for equity exchanged for the cancellation of the notes. With around GBP130 million of notes on issue, this results in an expected recovery of around 53% on the par value of existing notes. On completion of the reorganization, leverage will be lower and financial flexibility will be improved. This will give the company a stronger financial base and a lower credit risk profile. This should also assist to raise customers' view of the company and add flexibility for re-investment in the business. Moody's will withdraw the rating on the existing 2009 notes once these have been cancelled. The reorganization is conditional on the Scheme becoming effective. The reorganization will also require shareholder approval. Ratings actions: Luxfer Holdings Plc -- corporate family rating, downgraded to Caa3 from Caa2; and -- 10.125% senior notes due 2009, downgraded to Ca from Caa3. Headquartered in Manchester, United Kingdom, Luxfer specializes in the design and manufacture of high-pressure aluminium gas cylinders, as well as aluminium, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. For the last twelve months to June 30, 2006, Luxfer reported consolidated revenues of around GBP240 million. METALDYNE CORP: Lockup Agreement Cues Moody's to Change Review -------------------------------------------------------------- Moody's Investors Service changed the review of the ratings of Metaldyne Corp. and its wholly owned subsidiary, Metaldyne Company LLC, to direction uncertain from under review for possible upgrade. The change is prompted by published reports that Metaldyne's 11% senior subordinated noteholders have entered into an agreement which provides that its signatories will not tender the notes nor provide any requested consent absent an approval by 90% of the principal amount of the signatories of the lockup agreement, and at least 2/3 of the number of signatories of the lockup agreement. Each of the signatories to the lockup agreement will be required to tender or provide consents if a supermajority of the signatories to the lockup agreement accepts a tender or provides consent. This agreement decreases Metaldyne's flexibility in tendering or renegotiating the 11% senior subordinated notes in its attempt to complete the earlier announced agreement for Metaldyne to be acquired by Asahi Tec Corporation. The ratings under review, direction uncertain are: Metaldyne Corp.: * Corporate Family Rating, Caa1; * US$150 million of 10% guaranteed senior unsecured notes due November 2013, Caa2 (LGD4, 69%); * US$250 million of 11% guaranteed senior subordinated notes due June 2012, Caa3 (LGD6, 92%); Metaldyne Co. LLC * B2 (LGD2, 25%) rating for Metaldyne LLC's guaranteed senior secured credit facilities, consisting of: -- US$400 million (approximately US$375 million remaining) guaranteed senior secured tranche D term loans due December 2009; -- US$50 million guaranteed senior secured revolving credit facility due August 2011 (or December 2009 if the term loan is not refinanced by October 2009); and -- US150 million Synthetic L/C Facility due August 2011 (or December 2009 if the term loan is not refinance by October 2009). The last rating action was on Sept. 1 when the ratings were placed under review for possible upgrade based on the announcement that Metaldyne had signed an agreement to be acquired by Asahi, and on the potential financial and strategic benefits that might result from the transaction. Moody's review noted, however, that the completion of the transaction is subject to certain conditions including the successful tender of a portion of the company's existing public debt and the granting of waivers for the change of control language in the bond indentures. The decision by the holders of the senior subordinated notes to enter into the lockup agreement could increase the financial costs of proceeding with the acquisition or could result in a failure to achieve the waivers necessary for the transaction to proceed. Moody's review will continue to consider the financial benefits and strategic business opportunities, which could come to Metaldyne under a business combination with Asahi Tec. The review will also consider the current adverse business environment in the auto components sector, including recently announced production cutbacks in North America. Metaldyne Corp., headquartered in Plymouth, Michigan, is a manufacturer of highly engineered products for the global light vehicle market. Metaldyne designs, engineers and assembles metal-formed and engineered products used in transmissions, engines and chassis of vehicles. The company's annual revenues currently approximate US$1.9 billion. Ownership of Metaldyne is controlled by private equity sponsor Heartland Industrial Partners LP. NORDKALTE GMBH: Claims Registration Ends October 26 --------------------------------------------------- Creditors of Nordkalte GmbH Kalte- und Industriekalteanlagenbau have until Oct. 26 to register their claims with court-appointed provisional administrator Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 16 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Room 112 B 1st Floor Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against Nordkalte GmbH Kalte- und Industriekalteanlagenbau on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Nordkalte GmbH Kalte- und Industriekalteanlagenbau Aspastrasse 49 59394 Nordkirchen, Germany Attn: Christiane Kronberg, Manager Fahlweg 9 45711 Datteln, Germany The administrator can be contacted at: Dr. Stephan Thiemann Lublinring 12 48147 Muenster, Germany OPTIMAT BLOM: Claims Registration Ends October 26 ------------------------------------------------- Creditors of Optimat Blom Kuechen GmbH have until Oct. 26 to register their claims with court-appointed provisional administrator Hans-Achim Ernst. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 16 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Optimat Blom Kuechen GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Optimat Blom Kuechen GmbH Herforder Str. 82 32257 Buende, Germany Attn: Martinus Blom, Manager Wielstraat 9 NLD-5171 RJ Kaatsheuvel, The Netherlands The administrator can be contacted at: Hans-Achim Ernst Bunsenstr. 3 32052 Herford, Germany RAMBUS INC: Appoints David Shrigley as Independent Director ----------------------------------------------------------- Rambus Inc. appointed David Shrigley as an independent director to its board of directors. Mr. Shrigley was also appointed to the compensation committee of the Board. "Dave brings exceptional sales and marketing expertise to the Rambus board and we are delighted to have the benefit of his insight," Kevin Kennedy, chairman of the board of directors, said. "Dave's accomplishments include helping Intel emerge as a leading semiconductor company as well as being a key leader in Bay Networks' rise in the networking space. We look forward to his input as execute on our strategy of bringing world-class technology solutions to the marketplace." Mr. Shrigley served as a general partner at Sevin Rosen Funds, a venture capital firm, from 1999 to 2005. Prior to which, he held the position of executive vice president, Marketing, Sales and Service at Bay Networks. Mr. Shrigley served in various executive positions during his 18 years at Intel, including vice president and general manager of Asia Pacific Sales and Marketing Operations based in Hong Kong, and vice president and general manager, Corporate Marketing. Mr. Shrigley holds a bachelor's degree from Franklin University in Columbus, Ohio. He also serves on the board of SPI Lasers PLC. Headquartered in Los Altos, California, Rambus Inc., (NASDAQ: RMBS) -- http://www.rambus.com/--is a technology licensing company specializing in the invention and design of high-speed chip interfaces. The Company has regional offices in North Carolina, India, Germany, Japan and Taiwan. * * * On Sept. 8, 2006, the company received a notice of purported defaults from U.S. Bank National Association, trustee for the Company's Zero Coupon Convertible Senior Notes due 2010. The Notice asserted that the Company's failure to file its Form 10-Q for the quarter ended June 30, 2006 constituted defaults under Sections 7.2 and 14.1 of the Indenture between the Company and the Trustee governing the Notes. The Notice indicated that if the Company does not cure these purported defaults under the Indenture within sixty days of Aug. 17, 2006 an Event of Default would occur. The Company believes that it is not in default under the terms of the Indenture. SIAM CUISINE: Creditors' Meeting Slated for October 25 ------------------------------------------------------ The court-appointed provisional administrator for Siam Cuisine GmbH, Joachim Heitsch, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m. on Oct. 25. 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 9:05 a.m. on Jan. 31, 2007, at the same venue. Creditors have until Dec. 1 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Siam Cuisine GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Siam Cuisine GmbH Meierottostrasse 1 10719 Berlin, Germany The administrator can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin, Germany SWL SCHRIFT: Claims Registration Ends October 25 ------------------------------------------------ Creditors of SWL Schrift-Werbetechnik-Laatzen GmbH have until Oct. 25 to register their claims with court-appointed provisional administrator Nermin Sahin. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on Nov. 22 at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanover Hall 226 2nd Floor Office Building Hamburg Avenue 26 30161 Hanover, 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 Hanover opened bankruptcy proceedings against SWL Schrift-Werbetechnik-Laatzen GmbH on Aug. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SWL Schrift-Werbetechnik-Laatzen GmbH Attn: Regina Wostbrock, Manager Mergenthalerstrasse 12 30880 Laatzen, Germany The administrator can be contacted at: Nermin Sahin Theaterstr. 6 30159 Hanover, Germany Tel: 0511/35771030 Fax: 0511/35771059 SYRITAI AUSSENHANDELS: Creditors' Meeting Slated for Oct. 25 ------------------------------------------------------------ The court-appointed provisional administrator for SYRITAI Aussenhandels GmbH, Petra Hilgers, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Oct. 25. 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 9:05 a.m. on Jan. 31, 2007, at the same venue. Creditors have until Dec. 1 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against SYRITAI Aussenhandels GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SYRITAI Aussenhandels GmbH Lehderstr. 62 13086 Berlin, Germany The administrator can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin, Germany VOLKSWAGEN AG: Supports MAN AG Takeover Bid for Scania ------------------------------------------------------ The Supervisory Board of Volkswagen AG addressed the MAN AG/ Scania AB issue at its extraordinary meeting on Oct. 15. The Board is convinced that a solution acceptable to all sides could only be the merger of MAN and Scania. The following two resolutions by the Supervisory Board will remain in force until its next regular meeting on Nov. 17: -- Volkswagen shall only offer its 34% of Scania's voting rights and 18.7% of Scania's equity to MAN AG if MAN has received commitments to tender representing at least 71.31% of Scania's capital and at least 56.01% of Scania's voting rights; and -- Volkswagen would not support a counterbid by Scania at the present time. According to Financial Times, Volkswagen's position meant MAN would have to win over Investor AB, Scania's second biggest shareholder. "We welcome the decision of the Volkswagen supervisory board that it is in favor of combining the two companies," MAN was quoted by BBC, in response to VW's announcement. "We continue to make an effort to hold open and constructive discussions with Scania." Scania rejected MAN's latest EUR10.3 billion bid and a previous bid of EUR9.6 billion, expressing that it sees its future as an independent firm. Scania planned to pay a special dividend of SEK7 billion, or SEK35 a share as it continued to resist takeover by MAN, Bloomberg reports. Scania disclosed that a merger would hurt sales and threaten its brand. "If Scania continues to avoid constructive talks, Volkswagen and MAN will probably find a way to make a hostile takeover happen," said Peter Metzger, an analyst at M.M. Warburg in Hamburg was quoted by Bloomberg as saying. Volkswagen acquired a 15.6% stake in MAN to secure its strategic interest in the truck sector and should make possible a friendly and jointly developed solution. Volkswagen holds the biggest share in Scania with 34% of the voting rights and 18.7% of the equity. The carmaker rejected Sept. 18 MAN's EUR9.6 billion offer for Scania, expressing it did not address Volkswagen's "industrial interest" in Scania. Along with VW, the bid was also rejected by Investor AB. A combination of MAN and Scania would create Europe's biggest maker of commercial vehicles by market share and the world's third biggest behind Sweden's Volvo AB and Germany's DaimlerChrysler AG. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November last year, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. W. BURRI: Claims Registration Ends October 23 --------------------------------------------- Creditors of W. Burri e.K. have until Oct. 23 to register their claims with court-appointed provisional administrator Christina Siegert. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Nov. 16 at which time the administrator will present her 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 W. Burri e.K. on Aug. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: W. Burri e.K. Lehnerstr. 11 84051 Essenbach, Germany The administrator can be contacted at: Christina Siegert Oskar-von-Miller-Ring 34-36 80333 Munich, Germany Tel: 089/24440930 Fax: 089/244409365 ============= H U N G A R Y ============= BORSODCHEM NYRT: Withdraws Employee Shares to Reduce Capital ------------------------------------------------------------ The Extraordinary General Meeting of BorsodChem Nyrt. approved these resolutions: -- election of three members of the Board of Directors: -- Dr. Istvan Szatmary, representing VCP Divestment AG; -- Ildiko Gazso, representing The Bank of New York; -- Dr. Edit Mate and Peter Lengyel as poll clerks. -- in accordance with 8.35 of the Articles of Association of the Company, the General Meeting resolves that in connection with the item on the agenda of the General Meeting regarding the amendment of the Articles of Association it shall vote on the draft amendments to the Articles of Association proposed by the Board of Directors jointly, in a single poll in order to facilitate the efficient management of the General Meeting; -- the General Meeting further resolves that it does not require that the Board of Directors explain each of its proposals for the amendment of the Articles of Association item by item with respect to the fact that in accordance with the applicable laws the Board of Directors made available its proposals to the shareholders before the date of the extraordinary general meeting and the shareholders were thus given appropriate opportunity to review the proposals; -- The General Meeting approves the proposals of the Board of Directors submitted in connection with the amendment of the Articles of Association and amends the Articles of Association with the text attached to this resolution in accordance with the proposals of the Board of Directors. -- The General Meeting resolves on the reduction of the registered capital of the Company by HUF640,951,050. The reduction of the capital shall be implemented by the withdrawal of 3,173,025 employee shares with a reduction of the funds of the Company. The purpose of the reduction of the capital is to make distribution to the holders of the employee shares. Pursuant to Section 5 Clause 1/C (i) of the Articles of the Company, due to the fact that the First Performance Criteria defined by the Articles has been fulfilled within deadline, the holders of the employee shares will be paid the nominal value of their shares in the course of the reduction of capital and withdrawal of the employee shares. The nominal value of the employee shares will be distributed after the Court of Registration has registered the reduction of the capital. Following the reduction of the capital, the registered capital of the Company will be HUF16,029,270,650 that will consist of: -- 76,179,800 ordinary shares with a nominal value of HUF202; and -- 3,173,025 employee shares with a nominal value of HUF202. -- with regard to the reduction of the registered capital of the Company, the General Meeting amends Section 4 Clause 1 of the Articles of Association, with the effect of the registration of the capital reduction by the court: The amount of the Company's share capital is HUF16,029,270,650, which consists of: -- 76,179,800 dematerialized ordinary shares with HUF202 par value each, which form one series of shares; and -- l3,173,025 dematerialized employee shares each with a nominal value of HUF202, which form one series of shares. With regard to the reduction of the registered capital of the Company and the partial withdrawal of the employee shares, the General Meeting deletes Section 5 Clause 1/C (i) of the Articles of Association and it deletes the definitions "First Performance Criteria" and "Partial Withdrawal" contained in Section Clause 1/E of the Articles of Association, with the effect of the registration of the capital reduction by the Court of Registration. -- the General Meeting approves the amended Rules of Procedure of the Supervisory Board -- in accordance with the proposal of the Supervisory Board -- in the form attached to this resolution. -- by the proposal of the Board of Directors, the General Meeting of the Company elects: -- Dr. Christian Riener, -- Dr. Zoltan Varga, and -- Ms. Judit Banko to be members of the Audit Board for the duration their Supervisory Board membership, dating from the day of this present General Meeting until April 28, 2009. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The company also operates in Poland as well as trades in the Polish stock market. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. INVITEL HOLDINGS: Launches EUR118-Mln Sr. PIK Notes Offering ------------------------------------------------------------ Invitel Holdings N.V., the ultimate parent company of Invitel ZRt., disclosed an offering of Floating Rate Senior Pay-In-Kind Notes. The net proceeds from the Offering, which is expected to be approximately EUR118 million, will be used to repurchase certain of the Issuer's shares from its two major shareholders, EEIF and GMT. Key management will not participate in the share buyback and following the completion of the Offering each of EEIF, GMT and Invitel's senior management is expected to own 33.3% of the Issuer. The company expected the offering of the Notes to be completed in the next several days. Separately, Invitel reported that its preliminary, flash results for the three months ended Sept. 30, 2006 were broadly flat on the results for the prior quarter in terms of its revenue and EBITDA performance in Forints. Given movements in the Euro to Forint exchange rates, Euro-denominated results for the quarter ended Sept. 30, 2006 will be down compared with the second quarter. Headquartered in Budaors, Hungary, Invitel (fka Vivendi Telecom Hungary) -- http://www.invitel.hu/-- is the second largest fixed-line telecommunications provider in Hungary. For the six months ending June 30, 2006, the company reported revenues and EBITDA of approximately EUR87.7 million and EUR35.9 million, respectively. INVITEL HOLDINGS: Moody's Places B1 Rating Under Review ------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating to Invitel Holdings N.V., an indirect holding company of Magyar Telecom B.V. and Invitel Tavkozlesi Szolgaltato Rt. Concurrently, Moody's has put the B1 rating on review for possible downgrade following the company's announcement to issue EUR125 million Floating Rate Senior PIK Notes due 2013. Moody's is also reviewing the following ratings: -- EUR127.9 million senior secured facility at Ba3 -- EUR142.0 million senior notes at B3 Moody's has also withdrawn a B1 corporate family rating previously assigned at the level of Magyar Telecom B.V. The review will focus on the company's anticipated operational and financial performance in the context of increased debt levels and its financial policy going forwards. Headquartered in Budaors, Hungary, Invitel is the second largest fixed-line telecommunications provider in Hungary. For the six months ending June 30, 2006, the company reported revenues and EBITDA of approximately EUR87.7 million and EUR35.9 million, respectively. ========= I T A L Y ========= BANCA POPOLARE: Fitch Puts Individual C Rating on Watch Positive ---------------------------------------------------------------- Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. Fitch currently expects the IDR and Individual rating of the merged entity not to be under BPVN's current ratings by more than one notch. On the merger, Fitch will also review the Support rating of the resulting group and assess the relative importance of the new entity within the Italian banking system, which could lead to a change in the current Support rating. In Fitch's opinion, the new group will be in a strong position to compete effectively in the rapidly evolving Italian banking sector. It will become the largest co-operative bank in Italy and the fifth largest Italian bank by loans and deposits with a distribution network of over 2,100 branches concentrated in wealthy northern Italy, where it will have attractive regional market shares of between 7% and 14%. The ratings of the new group will reflect its strong and attractive franchise and significant size in the domestic market. They will also reflect merger execution risk, a tightening in capital adequacy with an expected Tier 1 ratio of around 6% at end-2007 and the need to improve the performance of BPI's branch network, which in the past has performed less well than its peers. BPVN's strong record in integrating previous acquisitions, most notably the merger with Banca Popolare di Novara, should help mitigate integration risks. Both BPI and BPVN will spin off their banking operations into separate subsidiaries prior to the merger. Following this spin- off, both co-operative banks will merge into a bank holding company, which will benefit from co-operative status and remain listed on the Milan Stock Exchange. The bank holding company will have banks and product companies as subsidiaries. In addition, BPI will pay out a special dividend for around EUR1.5 billion to its shareholders prior to the merger. The transaction as announced by the two banks is subject to approval by both banks' board of directors and shareholders and by the relevant authorities. BPVN is the result of a merger between Banca Popolare di Verona and BPN in 2002. At end- 2005, BPVN was Italy's seventh largest banking group by total assets. It offers a full range of banking services, predominantly to small- to medium sized enterprises and private individuals, mainly in northern Italy. BPVN's shares are widely held and listed on the Milan Stock Exchange. As a co-operative bank, voting rights are limited to one vote per shareholder. BPI, which changed its name from Banca Popolare di Lodi in June 2005, is a cooperative bank based in Lodi in Lombardy with a strong presence in Lombardy, Tuscany, Liguria and Sicily. Following the arrival of new management in late 2005, BPI has taken measures to strengthen procedures and controls and to reduce risk exposure. In July 2006, the bank raised EUR719 million of fresh capital in a rights issue. PARMALAT: Court Permits Citibank to Pursue Actions from Oct. 31 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved the stipulation between Citibank, N.A., and Citibank, N.A. International Banking Facility, on one hand, and Dr. Enrico Bondi, extraordinary administrator of Parmalat Finanziaria S.p.A. and certain of its affiliates and CEO of Reorganized Parmalat, on the other hand, stating that: a. at 5:00 p.m. New York time on Oct. 31, 2006, the Preliminary Injunction Order will automatically be deemed modified to permit Citibank to take any action to enforce its rights against Parmalat Paraguay S.A. or otherwise with respect to the obligations of Parmalat Paraguay to Citibank in Paraguay; b. during the Standstill Period, Reorganized Parmalat will provide Citibank, concerning Parmalat Paraguay and its subsidiaries, with: -- access to company management; -- access to their Paraguayan advisers; -- access to their books and records; and -- copies of and access to forecasts, budgets, restructuring plans, term sheets relating to a sale or other disposition of the assets, purchase and sale agreements, and correspondence relating to a sale or other disposition of assets or the restructuring of indebtedness; and c. during the Standstill Period, Reorganized Parmalat will not sell, transfer, encumber or incur new debt on any of the assets or shares of any of the Parmalat Paraguay Entities without Citibank's prior written consent. The Court approves the parties' stipulation. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) =================== K A Z A K H S T A N =================== ARGUMENT LLP: Kostanai Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region commenced bankruptcy proceedings against LLP Argument on Sept. 6. ARKO LTD: Creditors Must File Claims by Nov. 15 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Arko Ltd. (RNN 600500034614) insolvent on Dec. 9, 2005. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 15 to submit written proofs of claim to: LLP Arko Ltd. Micro District Mamyr-2, 4-24 Almaty, Kazakhstan Tel: 8 (3272) 57-10-19 8 (3335) 62-62-33 HAZAR-XXI: Aktube Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube Region commenced bankruptcy proceedings against LLP Hazar-XXI on Sept. 8. KA-PEKS-STROY: Almaty Court Starts Bankruptcy Procedure ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Construction Company Ka-Peks-Story (RNN 600500518603) on Sept. 8. KAISAR: Almaty Court Commences Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Construction Company Kaisar (RNN 600400506980) on Sept. 11. KRATT INDUSTRIAL: Proof of Claim Deadline Slated for Nov. 17 ------------------------------------------------------------ LLP Kratt Industrial Group has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Kratt Industrial Group Ratusnogo Str. 78 Almaty, Kazakhstan Tel: 8 (3272) 94-20-02 8 (3272) 94-20-06 PETROPAVLOVSK-FORT: Claims Registration Ends Nov. 14 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Petropavlovsk-Fort insolvent on Sept. 5. Creditors have until Nov. 14 to submit written proofs of claim to: LLP Petropavlovsk-Fort Partizanskaya Str. 27 Petropavlovsk North Kazakhstan Region Kazakhstan Tel: 8 (3152) 34-04-09 REMIX-R: Creditors' Claims Due Nov. 17 -------------------------------------- JSC Remix-R has declared insolvency. Creditors have until Nov. 17 to submit written proofs of claim to: JSC Remix-R Bekmahanov Str. 93 Almaty, Kazakhstan Tel: 8 (3272) 44-91-44 8 (3272) 50-72-74 Fax: 8 (3272) 50-41-36 VEGA LLP: Almaty Court Begins Bankruptcy Proceedings ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Vega (RNN 600300093458) insolvent on April 11. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Nov. 15 to submit written proofs of claim to: LLP Vega Micro District Mamyr-2, 4-24 Almaty, Kazakhstan Tel: 8 (3272) 57-10-19 8 (3335) 62-62-33 =================== K Y R G Y Z S T A N =================== ARM STROY: Creditors Must File Claims by Nov. 24 ------------------------------------------------ LLC Construction Company Arm Stroy has declared insolvency. Creditors have until Nov. 24 to submit written proofs of claim to: LLP Arm Stroy Karpinskyi Str. 312 Bishkek, Kyrgyzstan SPORT LIFE: Proof of Claim Deadline Slated for Nov. 24 ------------------------------------------------------ LLC Sport Life has declared insolvency. Creditors have until Nov. 24 to submit written proofs of claim to: LLC Sport Life Micro District 5, 4-28 Bishkek, Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: Eyes Foreign Assets; Denies Merger Talks ----------------------------------------------------- Evraz Group is eyeing assets outside Russia to complement the exports from its local units, RIA Novosti cites Chief Financial Officer Pavel Tatyanin as saying. "As for our international operations, there are several interesting units we are looking [to buy]," Mr. Tatyanin was quoted by RIA Novosti as saying. "These are units that fit into our general down-stream acquisition logic, units complementary to our export of slabs from Russian subsidiaries." Mr. Tatyanin also revealed plans of consolidating its positions in the European and U.S. steel roll markets and denied holding merger talks with any local or foreign companies. "We are not looking at Russian assets as we are busy completing our investment program at Russian metals units, and there is enough to do here in terms of further cost-cutting," Mr. Tatyanin said. Mr. Tatyanin also forecasted Evraz to post profit exceeding the figures for the past two years. About Evraz Headquartered in Luxembourg, Evraz Group S.A. -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in Sverdlovsk region and two mills in Kemerovo region. * * * As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded Luxembourg-registered Evraz Group S.A.'s Issuer Default and senior unsecured ratings to BB from BB-. The agency also upgraded Cyprus-registered subsidiary Mastercroft Limited's Issuer Default rating and Evraz Securities S.A.'s senior unsecured notes to BB from BB-. Mastercroft's and Evraz's Short-term B ratings are affirmed. The Outlooks for both IDRs remain Stable. Evraz Securities is a 100%-owned subsidiary of Mastercroft. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. ===================== N E T H E R L A N D S ===================== ARI NETWORK: July 31 Balance Sheet Upside-Down by US$300,000 ------------------------------------------------------------ ARI Network Services Inc. reported increased revenues and net income for the fiscal year ended July 31, 2006. Full Year Fiscal 2006 Highlights -- Revenues were US$14 million for fiscal 2006, compared to revenues of US$13.7 million in fiscal 2005. -- Operating income was US$2.07 million for fiscal 2006, compared to operating income of US$2.15 million in the prior fiscal year. -- Net income was US$3.2 million for fiscal 2006, compared to net income of US$2.8 million in fiscal 2005. Fourth Quarter Fiscal 2006 Highlights -- Revenues were US$3.4 million for the fourth quarter of fiscal 2006, compared to revenues of US$3.6 million for the same period in the prior year. -- Operating income was US$540,000 for the fourth quarter of fiscal 2006, compared to operating income of US$524,000 for the fourth quarter of fiscal 2005. -- Net income was US$725,000 for the fourth quarter of fiscal 2006, compared to net income of US$1.4 million for the comparable prior period. The Company's balance sheet at July 31, 2006 showed total assets of US$9.4 million and total liabilities of US$9.7 million, resulting in a total shareholders' deficit of US$300,000. Brian E. Dearing, chairman and chief executive officer, said the fourth quarter results were affected by a number of one-time events including revenue reversals, recognition of deferred tax assets based on updated forecasts of the Company's U.S. operations, recognition of a gain related to a vendor contract settlement, and reversal of accrued long-term bonuses related to the departure of an executive. "Excluding these events, our results for the fourth quarter were basically flat," Mr. Dearing said. ARI Network Services Inc. (OTCBB:ARIS) builds and supports a full suite of multi-media electronic catalog publishing and viewing software for the Web or CD and provides expert catalog publishing and consulting services to 71 equipment manufacturers in the U.S. and Europe and approximately 29,000 dealers and distributors in 89 countries in a dozen segments of the equipment market including outdoor power, power sports, ag equipment, recreation vehicle, floor maintenance, auto and truck parts aftermarket, marine and construction. The company's European office is headquartered in the Netherlands. =========== P O L A N D =========== BORSODCHEM NYRT: Withdraws Employee Shares to Reduce Capital ------------------------------------------------------------ The Extraordinary General Meeting of BorsodChem Nyrt. approved these resolutions: -- election of three members of the Board of Directors: -- Dr. Istvan Szatmary, representing VCP Divestment AG; -- Ildiko Gazso, representing The Bank of New York; -- Dr. Edit Mate and Peter Lengyel as poll clerks. -- in accordance with 8.35 of the Articles of Association of the Company, the General Meeting resolves that in connection with the item on the agenda of the General Meeting regarding the amendment of the Articles of Association it shall vote on the draft amendments to the Articles of Association proposed by the Board of Directors jointly, in a single poll in order to facilitate the efficient management of the General Meeting; -- the General Meeting further resolves that it does not require that the Board of Directors explain each of its proposals for the amendment of the Articles of Association item by item with respect to the fact that in accordance with the applicable laws the Board of Directors made available its proposals to the shareholders before the date of the extraordinary general meeting and the shareholders were thus given appropriate opportunity to review the proposals; -- The General Meeting approves the proposals of the Board of Directors submitted in connection with the amendment of the Articles of Association and amends the Articles of Association with the text attached to this resolution in accordance with the proposals of the Board of Directors. -- The General Meeting resolves on the reduction of the registered capital of the Company by HUF640,951,050. The reduction of the capital shall be implemented by the withdrawal of 3,173,025 employee shares with a reduction of the funds of the Company. The purpose of the reduction of the capital is to make distribution to the holders of the employee shares. Pursuant to Section 5 Clause 1/C (i) of the Articles of the Company, due to the fact that the First Performance Criteria defined by the Articles has been fulfilled within deadline, the holders of the employee shares will be paid the nominal value of their shares in the course of the reduction of capital and withdrawal of the employee shares. The nominal value of the employee shares will be distributed after the Court of Registration has registered the reduction of the capital. Following the reduction of the capital, the registered capital of the Company will be HUF16,029,270,650 that will consist of: -- 76,179,800 ordinary shares with a nominal value of HUF202; and -- 3,173,025 employee shares with a nominal value of HUF202. -- with regard to the reduction of the registered capital of the Company, the General Meeting amends Section 4 Clause 1 of the Articles of Association, with the effect of the registration of the capital reduction by the court: The amount of the Company's share capital is HUF16,029,270,650, which consists of: -- 76,179,800 dematerialized ordinary shares with HUF202 par value each, which form one series of shares; and -- l3,173,025 dematerialized employee shares each with a nominal value of HUF202, which form one series of shares. With regard to the reduction of the registered capital of the Company and the partial withdrawal of the employee shares, the General Meeting deletes Section 5 Clause 1/C (i) of the Articles of Association and it deletes the definitions "First Performance Criteria" and "Partial Withdrawal" contained in Section Clause 1/E of the Articles of Association, with the effect of the registration of the capital reduction by the Court of Registration. -- the General Meeting approves the amended Rules of Procedure of the Supervisory Board -- in accordance with the proposal of the Supervisory Board -- in the form attached to this resolution. -- by the proposal of the Board of Directors, the General Meeting of the Company elects: -- Dr. Christian Riener, -- Dr. Zoltan Varga, and -- Ms. Judit Banko to be members of the Audit Board for the duration their Supervisory Board membership, dating from the day of this present General Meeting until April 28, 2009. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The company also operates in Poland as well as trades in the Polish stock market. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. GREENBRIER COS: Buys Meridian Rail for US$227.5 Million Cash ------------------------------------------------------------ The Greenbrier Companies entered into a definitive agreement to acquire the stock of Meridian Rail Holdings Corp., which principally conducts business under the name Meridian Rail Services, from Stamford, Conn.-based private equity firm, Olympus Partners. The purchase price of the acquisition will be US$227.5 million in cash, plus or minus working capital adjustments. The acquisition is subject to customary closing conditions and is expected to close within the next 30 days. It is expected to be immediately accretive to Greenbrier's fiscal 2007 earnings. Meridian is a leading supplier of wheel maintenance services to the North American freight car industry, with over 25 years' experience. Operating from six strategically located wheel facilities, Meridian supplies replacement wheel sets and axle services to approximately 170 freight car maintenance locations where worn or damaged wheels, axles, or bearings are replaced. Meridian also operates a coupler reconditioning facility and performs railcar repair at one of its wheel services facilities. With the addition of Meridian's facilities, Greenbrier believes its expanded network of 10 strategically located wheelshops and 20 repair, refurbishment and replacement parts facilities provides a competitive advantage and economies of scale. The combined entities will become the largest wheel service network and one of the largest purchasers of wheels in North America. Together, the two companies' facilities will create an end-to- end shop network spanning much of the continental United States and Mexico. As network partners over the past seven years, Meridian and Greenbrier have provided certain customers total wheel set inventory management, utilizing proprietary, web-enabled transaction and reporting systems. Through these systems, Meridian's and Greenbrier's customers realize freight as well as administrative savings on all types of components and procured items. Customers include various Class 1 railroads, the largest of which is Union Pacific Railroad which, over the past seven years, has outsourced all wheel services to Meridian in partnership with Greenbrier. Over the last 12 months Meridian has generated approximately US$225 million in revenues. Headed by chief executive officer, Rick Turner, Meridian will maintain its current management team and a workforce of approximately 300 personnel. Mr. Turner will become president of Greenbrier's Wheel Services group, reporting to Tim Stuckey, president of Greenbrier's Rail Services group. "The Meridian acquisition further reinforces Greenbrier's strategy to distinguish itself within the rail industry with an integrated, diversified business model," William A. Furman, Greenbrier's president and chief executive officer, said. "The acquisition, along with our recent acquisition of Railcar America, supports our strategy to continue to grow our railcar repair, refurbishment, maintenance and replacement parts businesses, which are less cyclical and higher margin than our new railcar manufacturing business. In North America, large customers in rail transportation are moving towards relationships with fewer suppliers who can provide a comprehensive set of freight railcar products and support services. The increased emphasis by railroads on velocity and efficient capacity utilization will bring rapid change and favor Greenbrier's business model." Mr. Furman continued, "We believe with our integrated business strategy and an expanded network of 30 repair shops, wheel service centers, and replacement parts locations, there will be meaningful economies of scale, as well as significant revenue synergies and opportunities to grow our overall business. As an example, our parts business now consists of wheel sets, axles, boxcar doors and roofs, end of car cushioning units, sideframes, bolsters, couplers, and yokes. We can now provide a more robust and comprehensive set of parts and services throughout our repair shop network, our new car manufacturing business, and by serving our owned and managed fleet of 145,000 railcars. Similarly, we can also maximize value from recycled parts on railcars which we reengineer, repair or refurbish." Mr. Furman concluded, "The rail freight industry in North America currently consumes approximately 1.5 million wheels a year, and replacement demand has been growing steadily for many years, even during railroad industry downturns. We expect demand for wheel services to remain strong. Demand is forecast to grow in the foreseeable future, driven by fundamental economic forces that have driven growth in rail traffic, strong equipment utilization, increased pressure on railroad service design, and wear and tear on rolling stock. Following the Meridian acquisition, Greenbrier's Rail Services group is expected to generate close to US$400 million in annual revenues, nearly 4 times greater than fiscal 2006." Tim Stuckey, president of Greenbrier's Rail Services group, added, "Meridian and Greenbrier have been long-standing partners in the wheel services business, serving key freight car customers, such as Union Pacific Railroad, together over the past seven years. Meridian and Greenbrier will continue to provide Union Pacific almost 130,000 wheel sets per year under a multi-year contract. We are excited to have Rick Turner and the rest of the Meridian team join Greenbrier, bringing their exceptional wheel shop capabilities to our Rail Services group." Mark Rittenbaum, senior vice president and treasurer of Greenbrier, noted, "Concurrent with this acquisition, Greenbrier will increase its revolving line of credit with a US$275 million, five-year facility, led by Bank of America, to support this acquisition and provide additional liquidity. As part of our financing strategy, we intend to monetize some of our railcar leasing investments in fiscal 2007, as we reinvest these proceeds in recent acquisitions. We remain confident about Greenbrier's strong financial position, and its ability to generate significant operating cash flow and earnings growth potential. In the near term, we will continue to focus on integrating our recent acquisitions, while also selectively seeking opportunities to grow our business, both organically and through acquisition." Headquartered in Birmingham, Alabama, Meridian Rail Services supplies both new and reconditioned wheel sets to railroads, maintenance centers and repair shops across the U.S. and Mexico. It operates six full service freight car wheel facilities in Chicago Heights, IL; Corsicana, TX; Kansas City, KS; Lewistown, PA; San Bernardino, CA; and Mexico City, Mexico. Meridian also operates a coupler reconditioning facility in Chicago, IL and a car repair facility in Mexico City, Mexico. Greenbrier operates four full service freight car wheel facilities in Tacoma, WA; Pine Bluff, AR; Portland, OR; and Sahagun, Mexico. Headquartered in Stamford, Conn., Olympus Partners -- http://www.olympuspartners.com/-- is a leading private equity firm managing US$1.7 billion of capital on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs. Olympus emphasizes investments in family businesses, industries in upheaval and orphaned corporate divisions. Headquartered in Lake Oswego, Oregon, The Greenbrier Companies -- http://www.gbrx.com/-- supplies transportation equipment and services to the railroad industry. The Company builds new railroad freight cars in its manufacturing facilities in the U.S., Canada, and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 30 locations (post Meridian acquisition) across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 136,000 railcars. * * * As reported in the Troubled Company Reporter on May 18, 2006, Standard & Poor's Ratings Services assigned its 'B+' rating to The Greenbrier Companies Inc.'s proposed US$85 million convertible note offering, which will mature in 2026. At the same time, Standard & Poor's affirmed its ratings on the Lake Oswego, Oregon-based railcar manufacturer, including its 'BB-' corporate credit rating. S&P said the outlook is stable. GREENBRIER COS: Acquisition Prompts Moody's to Review Ratings ------------------------------------------------------------- Moody's Investors Service placed these ratings of The Greenbrier Companies under review for possible downgrade: -- corporate family of Ba3, -- senior unsecured of B1, LGD4, and -- SGL-2. The review is prompted by Greenbrier's announcement to acquire Meridian Rail Holding Corp. for approximately US$227 million in cash, which is in addition to the recent US$34 million purchase of Rail Car America. Funding the Meridian purchase is expected to increase Greenbrier's debt level by approximately US$140 million to approximately US$540 million. The remainder of the purchase will be from cash on hand. Pro-forma for both acquisitions using company estimates of EBITDA and Moody's standard adjustments, debt to EBITDA would be approximately 3.5x (fiscal year ending Aug. 31, 2006). As the amount and pace of acquisitions have exceeded Moody's expectations of earlier in the year when Greenbrier raised US$100 million of debt, the review will evaluate how this more active acquisition profile could affect funding the expected growth in the leasing portfolio. Moody's review will consider management plans to control potentially rapid asset growth during the company's expansion phase, as continued acquisitions and increased leases could result in even higher debt levels. As well, Moody's will review Greenbrier's plans to integrate these acquisitions into its now considerably larger repair and maintenance business. Greenbrier plans to increase its bank revolving credit facility (to US$275 million), and Moody's speculative grade liquidity rating will consider the company's ultimate capital structure, the amount and quality of the committed bank facility and the stability of cash from operations. Moody's notes that the Meridian acquisition will improve Greenbrier's market position in railcar wheel services, and is expected to close at a competitive acquisition multiple of approximately 6x EBITDA. Combining Meridian's extensive operations with those of Greenbrier -- operations, which have operated in partnership for several years -- will create the nation's largest wheel servicing network for the railroad industry. In addition, the orders and backlog for new railcars for Greenbrier's car building business are expected to remain strong over the near term. New rail car orders are highly cyclical, however, and the cash flow from the now much expanded railcar service business along with the portfolio of leases could be helpful in easing some of the cyclical pressures over time, in Moody's view. The Greenbrier Companies, based in Lake Oswego, Oregon provides services to Class I railroads including railcar manufacturing, leasing and car repair. =========== R U S S I A =========== AGIDEL: Court Names N. Mutallapov as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. N. Mutallapov as Insolvency Manager for LLC Shipping Company Agidel (TIN 0274061598). He can be reached at: N. Mutallapov Post User Box 1193 Ufa 450000 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-17828/06-G-ADM. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: LLC Shipping Company Agidel Kooperativnaya Str. 65a Ufa 450000 Bashkortostan Republic Russia BAKERY LLP: Penza Court Names P. Milov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Penza Region appointed Mr. P. Milov as Insolvency Manager for LLC Bakery. He can be reached at: P. Milov Shmidta Str. 4 440039 Penza Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A49-4126/2006-383b/10. The Arbitration Court of Penza Region is located at: Belinskogo Str. 2 440600 Penza Region Russia The Debtor can be reached at: LLC Bakery Patsaeva Str. 46 M. Serdoba Penza Region Russia BRICKWORKS LLC: Court Names P. Milov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. P. Milov as Insolvency Manager for LLC Brickworks. He can be reached at: P. Milov Shmidta Str. 4 440039 Penza Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-7653/2005 36-314. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: LLC Brickworks Lenina Str. 10 Satis Diveevskiy Region Nizhniy Novgorod Region Russia CHAINSAYA AGRO: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Tomsk Region commenced bankruptcy supervision procedure on OJSC Chainsaya Agro Industrial Company. The case is docketed under Case No. A67-5650/06. The Temporary Insolvency Manager is: Y. Chigarev Office 10 Komsomolskiy Pr. 58 Tomsk Region Russia The Debtor can be reaced at: OJSC Chainsaya Agro Industrial Company Ostrovskogo Str. 20 Podgornoye Chainskiy Region Tomsk Region Russia EVRAZ GROUP: Eyes Foreign Assets; Denies Merger Talks ----------------------------------------------------- Evraz Group is eyeing assets outside Russia to complement the exports from its local units, RIA Novosti cites Chief Financial Officer Pavel Tatyanin as saying. "As for our international operations, there are several interesting units we are looking [to buy]," Mr. Tatyanin was quoted by RIA Novosti as saying. "These are units that fit into our general down-stream acquisition logic, units complementary to our export of slabs from Russian subsidiaries." Mr. Tatyanin also revealed plans of consolidating its positions in the European and U.S. steel roll markets and denied holding merger talks with any local or foreign companies. "We are not looking at Russian assets as we are busy completing our investment program at Russian metals units, and there is enough to do here in terms of further cost-cutting," Mr. Tatyanin said. Mr. Tatyanin also forecasted Evraz to post profit exceeding the figures for the past two years. About Evraz Headquartered in Luxembourg, Evraz Group S.A. -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in Sverdlovsk region and two mills in Kemerovo region. * * * As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded Luxembourg-registered Evraz Group S.A.'s Issuer Default and senior unsecured ratings to BB from BB-. The agency also upgraded Cyprus-registered subsidiary Mastercroft Limited's Issuer Default rating and Evraz Securities S.A.'s senior unsecured notes to BB from BB-. Mastercroft's and Evraz's Short-term B ratings are affirmed. The Outlooks for both IDRs remain Stable. Evraz Securities is a 100%-owned subsidiary of Mastercroft. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. GLASS AND FINANCES: Court Names P. Tumbasov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Moscow appointed Mr. P. Tumbasov as Insolvency Manager for CJSC Glass and Finances (TIN 7727138484). He can be reached at: P. Tumbasov Post User Box 31 125468 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-33285/06-44-437B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Glass and Finances Administration Building Sevastopolskiy Pr. 34 117461 Moscow Region Russia ISETSKIY: Court Names I. Ulmatov as Insolvency Manager ------------------------------------------------------ The Arbitration Court of Sverdlovsk Region appointed Mr. Sverdlovsk as Insolvency Manager for CJSC Diary Isetskiy (TIN 6606013979). He can be reached at: I. Ulmatov Post User Box 9 GOS-9 Neftekamsk 452689 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-9148/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Diary Isetskiy Gasheva Str. 2-a Sredneuralsk 624070 Sverdlovsk Region Russia IVANOVSKIY FACTORY: Bankruptcy Hearing Slated for Feb. 21 --------------------------------------------------------- The Arbitration Court of Ivanovo Region will convene on Feb. 21, 2007, to hear the bankruptcy supervision procedure on OJSC Ivanovskiy Factory Of Textile Mechanical Engineering. The case is docketed under Case No. A17-1837/06-1-B. The Temporary Insolvency Manager is: A. Konstantinov Office 38 8th Marta Str. 32 153037 Ivanovo Region Russia The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: OJSC Ivanovskiy Factory Of Textile Mechanical Engineering Kalashnikova Str. 28 153043 Ivanovo Region Russia KLIMA CJSC: Court Names N. Mutallapov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. N. Mutallapov as Insolvency Manager for CJSC Building Company Klima (TIN 0274050109). He can be reached at: N. Mutallapov Post User Box 1193 Ufa 450000 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-17833/06-G-MOG. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: CJSC Building Company Klima Mendeleeva Str. 201b Ufa 450000 Bashkortostan Republic Russia LOMONOSOVSKOYE TRANSPORT: I. Babenko to Manage Insolvency Assets ---------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. I. Babenko as Insolvency Manager for CJSC Lomonosovskoye Transport Enterprise. He can be reached at: I. Babenko Post User Box 6 194214 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-51196/05. 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 Lomonosovskoye Transport Enterprise K. Flota Str. 23A Lomonosov St. Petersburg Region Russia LUKOIL OAO: License Revocation on Komi & Siberian Sites Looms ------------------------------------------------------------- The Federal Service for the Oversight of Natural Resources has recommended the revocation of OAO Lukoil's production and extraction licenses, Ria Novosti says. A special commission headed by Oleg Mitvol inspected Lukoil's eight production sites in West Siberia, operated by units Nazymgeodobycha and Khantymansiiskneftegasgeologiya, and 11 extraction sites in the Komi Republic. In a report submitted to the Ministry of Natural Resources of the Russian Federation, the commission said Lukoil failed to comply with oil production licensing agreements and requirements for developing oil extraction sites. The Ministry gave Lukoil up to six months to settle the violations or face revocations. "If our directives are not carried out, the licenses will be revoked," the Ministry said. The Ministry has revoked 80 licenses Russia since the start of the year. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) -- http://www.lukoil.com/-- explores and produces oil & gas, petroleum products and petrochemicals, and markets the outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. * * * As reported in TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. N.A.S.A. CJSC: 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 Building Company N.A.S.A. He can be reached at: P. Tarasov Post User Box 19 Office 100 170100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-26277/2006. 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 Building Company N.A.S.A. Raumskaya Str. 1 Kolpino St. Petersburg Region Russia NORD LTD: Yaroslavl Court Names P. Tarasov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Yaroslavl Region appointed Mr. P. Tarasov as Insolvency Manager for OJSC Insurance Company Nord Ltd. He can be reached at: P. Tarasov Post User Box 19 Post Office 100 170100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A82-7754/2006-56-B/403. The Debtor can be reached at: OJSC Insurance Company Nord Ltd. Mendeleeva Str. 2 Pereslavl-Zalesskiy 152025 Yaroslavl Region Russia PROMSVYAZBANK JSCB: Earns RUR3.28 Bln for January-September 2006 ---------------------------------------------------------------- JSC Promsvyazbank has released its results for the January- September 2006 period. Promsvyazbank posted RUR3.28 billion in net profit for the first nine months of 2006, compared with RUR638 million in net profit for the same period in 2005. The bank's loan portfolio increased 66.3% to RUR112.3 billion for the first nine months of 2006. The bank's client base also expanded, with corporate accounts growing by 28.2% to RUR61.4 billion household accounts hiking by 49.8% to RUR17.3 billion. As of Sept. 30, 2006, Promsvyazbank had RUR150 billion in total assets, RUR134.8 billion in total liabilities and RUR15.2 billion in total equity. Headquartered in Moscow, JSCB Promsvyazbank -- http://www.psbank.ru/eng/-- engages in lending business, project finance, leasing regional projects expanding its presence in the financial markets. Alexey and Dmitry Annaniev are the major shareholders in the Bank. Nova Ljubljanska Banka (Slovenia) holds 3.65% while Rostelecom owns 0.27%. * * * As reported in TCR-Europe on Oct. 5, Fitch Ratings upgraded Russia-based JSC Promsvyazbank's Issuer Default rating to B+ from B. The other ratings are affirmed at Short-term B, Individual D and Support 5; Stable Outlook. Fitch has also assigned an expected Long-term rating of B+ to PSB's upcoming senior unsecured eurobond and an expected Long-term rating of B- to its upcoming subordinated debt issue. Fitch Ratings assigned PSB Finance S.A.'s upcoming senior notes issue expected ratings of Long-term B+ and Recovery RR4. The issue is to be used solely for financing a loan to Russia-based JSC Promsvyazbank, which has been upgraded to Issuer Default rating B+ from B. Fitch has also assigned an expected Long-term rating of B- to the bank's upcoming subordinated debt issue. Moody's Investors Service assigned a Ba3 foreign currency debt rating to the Loan Participation Notes to be issued on a limited recourse basis by PSB Finance S.A. for the sole purpose of funding a loan to Promsvyazbank. Moody's said the outlook for the rating is stable. Moody's Ba3 debt rating is based on the fundamental credit quality of Promsvyazbank. The holders of the notes will be relying for repayment solely and exclusively on the ability of Promsvyazbank to make payments under the loan agreement. RIGHT WAY: Moscow Court Names A. Lyutyj as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. A. Lyutyj as Insolvency Manager for CJSC Tourist Company Right Way. He can be reached at: A. Lyutyj Post User Box 103 119415 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-29793/06-101-343B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Tourist Company Right Way Blagoveshenskiy Per. 12 103104 Moscow Region Russia STERLIBASH-MOL-ZAVOD: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Bashkortostan Republic commenced bankruptcy supervision procedure on LLC Sterlibash-Mol-Zavod (TIN 0241003752, OGRN 1030201590737). The case is docketed under Case No. A07-15963/06-G-ADM. The Temporary Insolvency Manager is: R. Khaliulin Komarova Str. 23 453851 Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: LLC Sterlibash-Mol-Zavod Tukaeva Str. 2 Sterlibashevo Sterlibashevskiy Region 453180 Bashkortostan Republic Russia STUD AZINSKIY: Perm Bankruptcy Hearing Slated for Jan. 12 --------------------------------------------------------- The Arbitration Court of Perm Region will convene on Jan. 12 to hear the bankruptcy supervision procedure on Federal State Unitary Enterprise Breeding Stud Azinskiy. The case is docketed under Case No. A50-11742/2006-B. The Temporary Insolvency Manager is: M. Leongardt Post User Box 6088 614000 Perm Region Russia The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: Federal State Unitary Enterprise Breeding Stud Azinskiy Budennogo Str. 23 Azinskiy Chernushinskiy Region 617834 Perm Region Russia VIMPEL-COMMUNICATIONS: Taps Alcatel to Set up Mobitel's Network ---------------------------------------------------------------- Mobitel, a unit of OJSC Vimpel-Communications, awarded Alcatel S.A. a contract to deploy a new mobile network in Georgia. The project will consist of covering the whole territory of Georgia with a new mobile GSM/GPRS/EDGE network, while preparing for the 3G/UMTS and/or WiMAX multi-standard introduction. Once the project will be completed Alcatel's mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers in Georgia. Under the terms of this contract, Alcatel will deliver its industry leading Alcatel Evolium GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel will also deliver a high availability IP/MPLS network based on the Alcatel 7710 Service Router. "We consider Georgia as one of the strategic mobile markets and hope to win a leading position in this market," Sergey Avdeev, executive vice-president and chief technical officer of VimpelCom, said. "To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame. I am confident that Alcatel's rich experience in wireless technologies will enable us to achieve this challenging plan." "This contract not only gives Alcatel a solid footprint in the mobile market in Georgia but it also expands our long term successful cooperation with VimpelCom and our presence in the overall CIS market," Johan Vanderplaetse, vice-president for Alcatel activities in the Commonwealth of Independent States, said. "The CIS High Growth Economies have proved to be a dynamic region for mobile communication and we are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection." About Alcatel Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia- based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. The outlook is stable. =============== S L O V E N I A =============== GOODYEAR TIRE: Moody's Affirms Rating on Labor Negotiations ----------------------------------------------------------- Moody's Investors Service affirmed Goodyear Tire & Rubber Co.'s B1 Corporate Family rating, but changed the outlook to negative from stable. At the same time, the company's Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. These rating actions reflect the increased operating uncertainty arising from the ongoing United Steelworkers strike at Goodyear's North American facilities, and the company's decision to increase cash on hand by drawing-down US$975 million under its domestic revolving credit facility. In the short-term, the extraordinary borrowing confirms liquid resources at the company's disposal, but does so by increasing gross leverage and carrying costs while labor negotiations in its critical North American market remain unresolved. Goodyear's pro forma global cash position of US$2.3 billion limits any near-term default probability, and the anticipated investment of the revolver proceeds in money market securities does not alter its net debt position. However, the uncertain outcome of any negotiations with the USW, the resultant impact on Goodyear's North American cost structure and competitive position, and the potential disruption to its tire production and customer relationships create an additional degree of near-term risk for Goodyear's credit stature. In Moody's view, the decision to draw under the credit facility may reflect the extent of the gap between the parties and the time frame in which a conclusion might be reached. Should the USW negotiations be concluded in a timely and constructive manner, it is likely that the rating outlook would be changed to stable and the Speculative Grade Liquidity rating raised to SGL-2. Ratings affirmed: Goodyear Tire & Rubber Co. * PDR: B1 * first lien credit facility, Ba1, LGD2, 10% * second lien term loan, Ba3, LGD3, 35% * third lien secured term loan, B2, LGD4, 63% * 11% senior secured notes, B2, LGD4, 63% * floating rate senior secured notes, B2, LGD4, 63% * 9% senior notes, B2, LGD4, 63% * 6 5/8% senior notes, B3, LGD6, 94% * 8 1/2% senior notes, B3, LGD6, 94% * 6 3/8% senior notes, B3, LGD6, 94% * 7 6/7% senior notes, B3, LGD6, 94% * 7% senior notes, B3, LGD6, 94% * senior unsecured convertible notes, B3, LGD6, 94% Goodyear Dunlop Tyres Europe * Euro revolving credit facilities, Ba1, LGD2, 10% * Euro secured term loan, Ba1, LGD2, 10% Ratings changed: Goodyear Tire & Rubber Co. * Speculative Grade Liquidity rating to SGL-3 from SGL-2 Goodyear's announcement of Oct. 13 will increase debt/EBITDA to roughly 5.4 times on a pro forma basis from 5.0 times using June 30 results. Similarly, EBIT/interest would experience a minor deterioration from the 1.5 times achieved at the end of June. However, such calculations would presume a forward run- rate of earnings level with June LTM results. Weak replacement tire demand in North America, challenges to yield management from high and volatile commodity costs and surplus industry capacity, and publicly unspecified rates at which it can replenish tires sold from inventory while USW workers are on strike underscore risks to assumptions for future performance metrics. Moody's would expect Goodyear's international operations, which generate the preponderance of profits and cash flow, to continue to perform well. Any emerging changes to Goodyear's profile must also be considered in the context of the qualitative and quantitative progress the company has made over the last few years, and the room established within the current rating category for any immaterial relapse. While Goodyear currently has tires to satisfy customer requirements in North America, should that capacity diminish over time, its North American enterprise value and cash flows could deteriorate. While these risks are not imminent, they could appear on the horizon with greater certainty before year- end. A resolution of the labor negotiations could clarify the company's prospects beyond the next few weeks, but the time frame to expect an agreement is unknown. As a precaution, the outlook has been changed to negative. This could quickly be reversed should a resolution be announced, its terms assessed, and revolver borrowings unwound. The SGL-3 represents adequate liquidity over the next twelve months. The borrowing has substantially bolstered the company's balance sheet resources, but internal cash flow beyond the next few weeks is harder to predict. A labor agreement satisfactory to the company could also involve up-front restructuring expenditures. The trade-off to the increase in cash is the effective exhaustion of remaining unused commitments under the domestic revolving credit facility. The company will have comfortable headroom under its two financial covenants. But, over time, unknown EBITDA generation may start to erode this cushion. A near-term resolution of the labor dispute could also lead to a rapid change in the company's liquidity profile. Consequently, the Speculative Grade Liquidity profile has been lowered to SGL-3. Goodyear Tire & Rubber Co., headquartered in Akron, OH, is one of the world's largest tire companies with more than 100 facilities in 29 countries around the world. Products include tires, engineered rubber products, and chemicals. Revenues in 2005 were approximately US$20 billion. ========= S P A I N ========= FOSTER WHEELER: Moody's Changes Rating on Credit Facility to Ba1 ---------------------------------------------------------------- Moody's Investors Service changed the rating on Foster Wheeler LLC's new US$350 million, senior secured domestic credit facility to Ba1 from Ba3. The change in rating results from Moody's implementation of its LGD rating methodology following the company's successful closing of its new facility. The LGD rating methodology enhances 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. The credit facility consists of a five-year US$200 million senior secured revolving credit facility and a five-year US$150 million synthetic letter of credit facility. The rating on the US$350 million facility reflects a loss given default of LGD 1 (6% LGD rate). In addition, Moody's affirmed all existing ratings. The rating outlook is positive. This facility replaces FWC's existing US$250 million senior secured credit facility and as a result, the Ba1 rating on this facility will be withdrawn. Moody's noted that substantially all the assets and capital stock of Foster Wheeler Ltd. and its direct subsidiaries (66% of the capital stock of certain foreign subsidiaries) secure the new credit facility and that Foster Wheeler Ltd. and certain domestic and foreign subsidiaries will provide guarantees. Financial covenants include a maximum leverage ratio and a minimum interest coverage ratio. Management has indicated that is does not plan to draw the revolver in the near term. Further, Moody's noted that the Ba1 rating for the bank facility incorporates the benefits and limitations of the collateral, as well as the modest level of potential borrowing. The facility will represent virtually all of FWC's corporate debt upon close and is expected to be highly collateralized, resulting in a multiple-notch upgrade from the corporate family rating. The key rating factors supporting the B1 corporate family rating and positive outlook include: -- the completion FWC's debt reduction program, reducing debt to US$191 million during the second quarter of 2006, -- a significant improvement in global E&C market conditions and a stabilized global power outlook, enabling FWC to more than double backlog to US$5 billion at June 30, 2006, and -- Moody's expectation of continued improvement in free cash flow generation enhanced by recent asbestos settlements with insurance companies. Moody's previous rating action on FWC was the Sept. 22 upgrade of the existing credit agreement to Ba1 from Ba3. Foster Wheeler Ltd., headquartered in Hamilton, Bermuda, is a leading industrial engineering, construction, maintenance, and related technical service company. Consolidated operating revenues were US$2.2 billion in 2005. =========== S W E D E N =========== SANMINA-SCI: Needs to Restate Historical Financial Statements ------------------------------------------------------------- Sanmina-SCI Corp. disclosed that the Special Committee of its Board of Directors reported its findings after an investigation into the company's stock option administration policies and practices dating back to Jan. 1, 1997. The Special Committee, comprised of disinterested, non- management members of the Board, retained independent counsel and forensic accountants to assist it in conducting the investigation. In the course of its four-month investigation, the investigation team examined over one million electronic documents and over 350,000 pages of hardcopy documents, and conducted more than 40 interviews with current and former employees, directors and advisors. The Special Committee found that most stock option grants to executives and other employees between 1997 and 2006 were not correctly dated or accounted for and will require that the company restate its historical financial results and record non- cash compensation charges. The investigation identified concerns in particular regarding the actions of a former and a current member of management involved in the authorization, recording and reporting of stock option grants. The company has accepted the resignation of the current member of management. The Board of Directors and Special Committee have responded and continue to respond to these issues and are taking appropriate action, the details of which will be disclosed to the appropriate regulatory authorities. The Special Committee also made recommendations to the Board of Directors regarding remediation of weaknesses in the company's internal controls over its stock administration practices that led to the issues identified, including, among other controls, the following: -- Establishing fixed dates for the granting of all equity-based awards; -- Precluding officers, and certain other identified executives, from receiving equity-based awards during any black-out periods; -- Requiring auditable, verifiable evidence of the date of approval for routine new hire, promotion and certain discretionary grants; and -- Mandating approval of the Compensation Committee prior to issuance of all other grants. Each of the recommendations was voted on by the Board of Directors and unanimously adopted. The recommendations are effective immediately. Commenting on the situation, Sanmina-SCI's Chief Executive Officer, Jure Sola, stated, "I am pleased with the thoroughness of the Special Committee's investigation and the recommendations they have made to remediate, and help us insure that this never happens again. I regret that our stock options program was not properly administered in the past and I apologize to our stockholders, employees, and customers for any impact or concerns these issues may have caused. With this investigation now behind us, we expect to refocus our management's attention on servicing the needs of our customers and improving our operating efficiencies." The Sanmina-SCI's management has determined, and the audit committee of the company's Board of Directors concurred, restatement of the company's historical financial statements will be necessary because the company will need to record additional stock-based compensation expenses as a result of the findings of the Special Committee. Sanmina-SCI believes that substantially all of these charges will be of a non-cash nature. The company has, in consultation with its independent auditors, submitted the proposed accounting treatment for the charges to the Office of the Chief Accountant of the Securities and Exchange Commission. Because of the pending OCA review, the company has not yet determined conclusively the amount of such charges, the resulting tax impact, or which periods may require restatement. The company expects to file its restated financial statements as soon as reasonably practicable after the OCA responds to the company's submission. In addition, the company's management has met with the Listings Qualification Panel of the Nasdaq Stock Market regarding the company's plan for completing its late SEC filings and returning to compliance with the listing qualification requirements of the Nasdaq Stock Market. The Listings Qualification Panel has not yet ruled on the company's request. Sanmina-SCI continues to cooperate with the SEC and the United States Attorney's Office for the Northern District of California in response to the Security and Exchange Commission's informal inquiry and the United States Attorney's Office's grand jury subpoena for documents relating to the company's past practices for granting employee stock options. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in TCR-Europe on Aug. 28, Fitch Ratings downgraded Sanmina-SCI Corp.: -- Issuer Default Rating to 'B+' from 'BB-' Fitch also placed Sanmina's IDR, as well as these ratings, on Rating Watch Negative: -- Senior subordinated debt 'B+' -- First lien senior secured credit facility 'BB+'. SANMINA-SCI: Inks US$600 Million Term Loan with Bank Syndicate -------------------------------------------------------------- Sanmina-SCI Corporation entered into a credit agreement with: -- Bank of America, N.A., as Administrative Agent; -- Citibank, N.A., as Syndication Agent; -- Deutsche Bank AG Cayman Islands Branch, as Documentation Agent; and -- Banc of America Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Joint Book Managers and Joint Lead Arrangers. The Credit and Guaranty Agreement, dated as of Oct. 13, 2006, provides for a US$600 million senior unsecured term loan, which matures on Jan. 31, 2008. The Company drew down the US$600 million term loan simultaneously with the closing of the transaction. A portion of the proceeds of the term loan were used on Oct. 13, to effect, in accordance with the terms thereof, the satisfaction and discharge of the Indenture, dated as of March 15, 2000, by and between SCI Systems, Inc. and the trustee, pursuant to which SCI Systems, Inc. issued its 3% Convertible Subordinated Notes due 2007. In connection with the satisfaction and discharge of the Indenture, US$532,875,000 in cash was deposited with the trustee, which amount is equal to the principal and interest scheduled to be due and owing on the Notes on their maturity date, which is March 15, 2007. The Company intends to use the remaining proceeds for working capital and general corporate purposes. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in TCR-Europe on Aug. 28, Fitch Ratings downgraded Sanmina-SCI Corp.: -- Issuer Default Rating to 'B+' from 'BB-' Fitch also placed Sanmina's IDR, as well as these ratings, on Rating Watch Negative: -- Senior subordinated debt 'B+' -- First lien senior secured credit facility 'BB+'. SANMINA-SCI: Stock Option Probe Cues Moody's to Put Ba2 Ratings --------------------------------------------------------------- Moody's assigned a Ba2 rating to Sanmina-SCI Corp.'s proposed US$600 million unsecured term loan facility due 2008. The proceeds of the proposed US$600 million term loan will be used to finance US$525 million of Sanmina's 3% convertible subordinated notes due 2007. Sanmina's corporate family rating of Ba2 and all of its other outstanding ratings will remain under review for possible downgrade. Likewise, the new Ba2 rating on the proposed term loan facility will also be placed under review for possible downgrade. Moody's notes that Sanmina's debt ratings were placed under review for possible downgrade on Aug. 14 following Sanmina's announcement of the on-going investigation into its stock option administration practices and its confirmation that Sanmina would not be able to file with the Securities and Exchange Commission its 10-Q for the quarter ended July 1, 2006, by the required deadline as a result of the investigation. The ratings for the new facility reflects both the overall probability of default of the company, to which Moody's assigned a PDR of Ba2, and a loss given default of LGD3. Sanmina announced on Oct. 12 that it has concluded its internal investigation of its stock options practices and that most stock option grants to executives and employees between 1997 and 2006 were not correctly dated. As a result, Sanmina will restate its financial statements for the past 9 fiscal years, though the amount of restatement has not been quantified. Moody's understands that cash impact from the restatement is not likely to be material. Although the conclusion of its internal investigation is an important step toward resolution, Moodys' notes that Sanmina is still under SEC and DOJ investigation, and has yet to file its financial statements for the July 1, 2006 quarter, a violation of its borrowing program covenant. Sanmina has obtained consent waivers from all of its debt holders, except for the holders of its 2007 subordinated convertible notes, which will be refinanced from the proceeds of the proposed term loan. Until Sanmina is able to file its financial statements within the waiver period granted by the lenders, Moody's concern over potential liquidity will remain and thus Sanmina's ratings continue to be under review for possible downgrade. Sanmina cited a general systemic controls failure as the cause for options dating errors and plans to implement a number of changes to improve internal control and accuracy of financial accounting. This controls failure raises concerns regarding the quality of corporate governance and controls at Sanmina. Assessment of these risks, as well as continued exposure to regulatory, legal and litigation risk, will be integrated into the ratings review. Moody's could move the ratings down if further concerns regarding weakness in internal controls, disclosure, or accounting controls emerge, if legal or regulatory action yielded material costs or effected senior management, or if concerns over its liquidity were to surface. Conversely, upon a favorable resolution of the SEC and DOJ investigations, and satisfactory liquidity coupled with the filing of the July 2006 quarterly report with non-material restatements within the consent waiver period, Sanmina's ratings could be confirmed. Leverage and credit metrics will not change as a result of the current refinancing. Pro forma this transaction, leverage is expected to be about 3.8 times to EBITDA (pre-restatement) and EBITDA to interest coverage about 3.4 times, again pre- restatement. Sanmina remains well positioned as a tier-one EMS provider and plays a critical role in the electronics supply chain. Ratings/assessments assigned and placed under review for downgrade: * US$600 million senior unsecured term loan due 2008 at Ba2 (LGD3, 45%) Ratings/assessments under review for downgrade include: * Corporate family rating at Ba2; * Probability-of-default rating at Ba2; * US$400 million senior subordinated notes due 2013 at Ba3 (LGD5, 85%); * US$600 million senior subordinated notes due 2016 at Ba3 (LGD5, 85%); * SCI Systems Inc.'s US$525 million 3% convertible subordinated notes due 2007 (guaranteed by Sanmina) at B1 (rating to be withdrawn upon refinancing); and * SGL-1 speculative grade liquidity rating. Headquartered in San Jose, California, Sanmina-SCI Corp. is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. SANMINA-SCI: Fitch Lowers Sr. Subordinated Debt to B/RR5 -------------------------------------------------------- Fitch Ratings downgraded Sanmina-SCI Corp.'s Senior subordinated debt to B/RR5 from B+/RR4. Fitch also assigned BB+/RR1 rating to US$600 million term loan expiring on January 2008. The ratings on senior secured, senior subordinated and these ratings remain on Rating Watch Negative: -- Issuer Default Rating B+; and -- First lien senior secured credit facility BB+/RR1. Fitch's action affects approximately US$1.6 billion of total debt securities, pro forma for the issuance of the US$600 million term loan due January 2008 and redemption of US$525 million of subordinated convertible debentures due March 2007. The senior subordinated downgrade reflects Sanmina layering US$600 million of senior unsecured debt on top of the senior subordinated debt, resulting in lower recovery prospects for the subordinated debt. Fitch estimates recovery for the subordinated notes would decline to 11%-30% from 31%-50% prior to the refinancing, resulting in an RR5 recovery rating. The BB+/RR1 ratings for the senior unsecured term loan reflect Fitch's estimation that the unsecured debt will recover 100% in a distressed scenario. Fitch believes recovery parity between the senior unsecured and senior secured debt is supported by the fact that the lending group for the term loan is essentially the same as that of the senior secured credit facility and maturity date of the term loan, January 2008, is well ahead of the maturity of the credit facility, December 2008. The Recovery Ratings and notching reflect Fitch's recovery expectations under a distressed scenario, as well as Fitch's expectation that the enterprise value of Sanmina, and hence, recovery rates for its creditors will be maximized in liquidation rather than in restructuring. In estimating Sanmina's liquidation value under a distressed scenario, Fitch applied advanced rates of 80%, 20% and 10% to Sanmina's current balance of accounts receivable, inventory and property, plant and equipment, respectively. That leads to a distressed enterprise value estimate of approximately US$1.2 billion, providing the basis for a waterfall analysis to determine recovery ratings. The Negative Rating Watch continues to reflect Sanmina's delayed filing of its 10Q and compliance certificates for the quarter ended July 1, 2006 and corresponding non-compliance with NASDAQ's filing requirements as well as continuing investigations by the SEC and a federal grand jury into the company's stock option administration practices dating back to Jan. 1, 1997. Sanmmina recently announced the conclusion of its own internal investigation, which determined that most options awarded between 1997 and 2006 were not correctly dated and accounted for. Fitch believes that a resolution of the stock option investigations and satisfactory filing of Sanmina's 10Q as well as compliance certificates is likely to resolve the Negative Rating Watch status. Pro forma for the refinancing Fitch believes liquidity was sufficient as of July 1, 2006 and supported by approximately US$563 million of cash and equivalents and an undrawn US$500 million senior secured revolving credit facility due 2008, which is not available for refinancing purposes. Sanmina's US$200 million receivables sales facility due 2007 also supports liquidity. Fitch estimates that total debt on a pro forma basis is approximately US$1.6 billion and consists primarily of: -- US$600 million senior unsecured term loan due January 2008; -- US$400 million of 6.75% senior subordinated notes due March 2013 (callable in 2009); and -- US$600 million of 8.125% senior subordinated notes due March 2016; but excludes US$525 million of 3% convertible subordinated notes which are being redeemed. STRATOS GLOBAL: 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 Towers & Satellites sector, the rating agency confirmed its Ba1 Corporate Family Rating for Stratos Global Corp. Additionally, Moody's revised 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$25 million Sr. Sec. Revolver due 2011 B1 Ba2 LGD 2 23% US$20 million Sr. Sec. Term Loan A due 2012 B1 Ba2 LGD 2 23% US$225 million Sr. Sec. Term Loan B due 2011 B1 Ba2 LGD 2 23% US$150 million 9.875% Sr. Unsec. Global Notes due 2013 B2 B3 LGD 5 77% 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%). Stratos Global Corporation -- http://www.stratos.ca-- provides range of advanced mobile and fixed-site remote telecommunications solutions for users operating beyond the reach of traditional networks. The Company serves the voice and high-speed data connectivity requirements of a diverse array of markets, including government, military, energy, industrial, maritime, aeronautical, enterprise, media and recreational users throughout the world. In Europe, Stratos maintains operations facilities and/or sales offices in Sweden, Russia, Scotland, Turkey, United Kingdom and Germany. =========== T U R K E Y =========== FOSTER WHEELER: Moody's Changes Rating on Credit Facility to Ba1 ---------------------------------------------------------------- Moody's Investors Service changed the rating on Foster Wheeler LLC's new US$350 million, senior secured domestic credit facility to Ba1 from Ba3. The change in rating results from Moody's implementation of its LGD rating methodology following the company's successful close of its new facility. The LGD rating methodology enhances 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. The credit facility consists of a five-year US$200 million senior secured revolving credit facility and a five-year US$150 million synthetic letter of credit facility. The rating on the US$350 million facility reflects a loss given default of LGD 1 (6% LGD rate). In addition, Moody's affirmed all existing ratings. The rating outlook is positive. This facility replaces FWC's existing US$250 million senior secured credit facility and as a result, the Ba1 rating on this facility will be withdrawn. Moody's noted that substantially all the assets and capital stock of Foster Wheeler Ltd. and its direct subsidiaries (66% of the capital stock of certain foreign subsidiaries) secure the new credit facility and that Foster Wheeler Ltd. and certain domestic and foreign subsidiaries will provide guarantees. Financial covenants include a maximum leverage ratio and a minimum interest coverage ratio. Management has indicated that is does not plan to draw the revolver in the near term. Further, Moody's noted that the Ba1 rating for the bank facility incorporates the benefits and limitations of the collateral, as well as the modest level of potential borrowing. The facility will represent virtually all of FWC's corporate debt upon close and is expected to be highly collateralized, resulting in a multiple-notch upgrade from the corporate family rating. The key rating factors supporting the B1 corporate family rating and positive outlook include: -- the completion FWC's debt reduction program, reducing debt to US$191 million during the second quarter of 2006, -- a significant improvement in global E&C market conditions and a stabilized global power outlook, enabling FWC to more than double backlog to US$5 billion at June 30, 2006, and -- Moody's expectation of continued improvement in free cash flow generation enhanced by recent asbestos settlements with insurance companies. Moody's previous rating action on FWC was the Sept. 22 upgrade of the existing credit agreement to Ba1 from Ba3. Foster Wheeler Ltd., headquartered in Hamilton, Bermuda, is a leading industrial engineering, construction, maintenance, and related technical service company. Consolidated operating revenues were US$2.2 billion in 2005. ============= U K R A I N E ============= DNIPROPETROVSK MEAT: Court Names Mihajlo Grishin as Liquidator -------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Mihajlo Grishin as Liquidator/Insolvency Manager for OJSC Dnipropetrovsk Meat Combine (code EDRPOU 00443246). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. B 26/10/06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: OJSC Dnipropetrovsk Meat Combine Molodogvardijska Str. 32 49022 Dnipropetrovsk Region Ukraine INTERAGROSERVICE: Court Names Sergij Yegorenkov as Liquidator ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Sergij Yegorenkov as Liquidator/Insolvency Manager for LLC Interagroservice (code EDRPOU 31010218). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. 250/3b-05/11. 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 Interagroservice Stovpyagi Pereyaslav-Hmelnitskij District Kyiv Region Ukraine INTURIST-SIMFEROPOL: Svitlana Tamashova to Liquidate Assets ----------------------------------------------------------- The Economic Court of AR Krym Region appointed Svitlana Tamashova as Liquidator/Insolvency Manager for State Enterprise Inturist-Simferopol (code EDRPOU 02574509). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2-31/12660-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: State Enterprise Inturist-Simferopol Gagarin Str. 5 Simferopol 95034 AR Krym Region Ukraine KIROVSK AUTO 10923: Court Names Mikola Hajlo as Liquidator ---------------------------------------------------------- The Economic Court of Lugansk Region appointed Mikola Hajlo as Liquidator/Insolvency Manager for OJSC Kirovsk Auto Transport Enterprise 10923 (code EDRPOU 03113325). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. 11/167 b. The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: OJSC Kirovsk Auto Transport Enterprise 10923 Stepova Str. 1 Kirovsk 93800 Lugansk Region Ukraine MAGISTR-LTD: Court Names Galina Yeryomenko as Liquidator -------------------------------------------------------- The Economic Court of AR Krym Region appointed Galina Yeryomenko as Liquidator/Insolvency Manager for LLC Production-Commercial Firm Magistr-Ltd. (code EDRPOU 24028871). The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 31. The case is docketed under Case No. 2-6/2674.1-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: LLC Production-Commercial Firm Magistr-Ltd Kirov Str. 79/36 Kerch 98300 AR Krym Region Ukraine MARSH LLC: Kyiv Court Names Roman Sapelin as Insolvency Manager --------------------------------------------------------------- The Economic Court of Kyiv Region appointed Roman Sapelin as Liquidator/Insolvency Manager for LLC Marsh (code EDRPOU 31841172). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15. The case is docketed under Case No. 43/230. 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 Marsh Oranzherejna Str. 3 04112 Kyiv Region Ukraine MIZYAKIVSKI-HUTORI: Court Names Artur Milovanov as Liquidator ------------------------------------------------------------- The Economic Court of Vinnitsya Region appointed Artur Milovanov as Liquidator/Insolvency Manager for Agricultural CJSC Mizyakivski-Hutori (code EDRPOU 31760722). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 7. The case is docketed under Case No. 5/232-05. The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: Agricultural CJSC Mizyakivski-Hutori Pushkin Str. 16 Vinnitsya District Vinnitsya Region Ukraine RADIAL LLC: Lviv Court Starts Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on LLC Radial (code EDRPOU 20785492) on Aug. 1. The case is docketed under Case No. 6/133-29/215. The Temporary Insolvency Manager is: Andrij Sibal Doroshenko Str. 61/5 Lviv Region Ukraine The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Radial Sichovih Striltsiv Str. 10/17 Novoyavorivsk 81053 Lviv Region Ukraine TAVRIYA: Zaporizhya Court Names O. Kretova as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Ms. O. Kretova as Liquidator/Insolvency Manager for LLC Tavriya (code EDRPOU 31216590). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/147-21/161/06. The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: LLC Tavriya Miru Str. 35-A Zelenivka Primorsk District 72113 Zaporizhya Region Ukraine TEP HOLDING: Kyiv Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on Joint Ukrainian-British JSCCT Tep Holding Company Ukraine on Aug. 23. The case is docketed under Case No. 43/580. The Temporary Insolvency Manager is: Ivan Gusar a/b 29 01030 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: Joint Ukrainian-British JSCCT Tep Holding Company Ukraine Melnikov Str. 12 04050 Kyiv Region Ukraine WINNER GROUP: Kyiv Court Names Oleksandr Palshin as Liquidator -------------------------------------------------------------- The Economic Court of Kyiv Region appointed Oleksandr Palshin as Liquidator/Insolvency Manager for LLC Winner Group (code EDRPOU 33546135). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15. The case is docketed under Case No. 24/380-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 Winner Group Shors Str. 29 Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== AQUARIUM SUPERSTORE: Appoints Liquidators from CBA -------------------------------------------------- Neil Charles Mooney and Neil Richard Gibson of CBA were appointed Joint Liquidators of Aquarium Superstore Limited on Oct. 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Aquarium Superstore Limited Unit 33 Chequers Lane Derby Derbyshire DE21 6AW United Kingdom Tel: 01332 366277 ASPIRE LEISURE: Taps C. H. I. Moore to Liquidate Assets ------------------------------------------------------- C. H. I. Moore was appointed Liquidator of Aspire Leisure Trust on Sept. 29 for the creditors' voluntary winding-up procedure. The company can be reached at: Aspire Leisure Trust Southbury Leisure Centre 192 Southbury Road Enfield Middlesex EN1 1YP United Kingdom Tel: 020 8245 3201 BALL CORP: Closing Two North American Manufacturing Facilities -------------------------------------------------------------- Ball Corp. disclosed that by the end of the year it will close two manufacturing facilities in North America, as part of the realignment of Metal Food & Household Products, Americas -- a segment of the company -- following the acquisition earlier this year of US Can Corporation. Ball Corp. will close a leased facility in Alliance, Ohio -- one of the 10 manufacturing locations in the US acquired from US Can. The plant manufactures plastic pails, primarily for paints and chemicals. Equipment in the facility will be relocated to other Ball plants in Ohio and Georgia. Meanwhile, Ball Corp.'s Canadian subsidiary will close a metal food can manufacturing plant in Burlington, Ont., which was part of Ball Corp.'s metal food can operations prior to the acquisition. The facility produces three-piece steel food can bodies and ends, and does metal cutting and coating. Some equipment from the plant will be relocated to other Ball Corp. facilities, while the rest will be sold or scrapped. The closure of the Alliance plant will be treated as an opening balance sheet item related to the US Can acquisition. Ball Corp. will record a fourth quarter after-tax charge of approximately US$25 million related to equipment disposal and the Burlington closure. John A. Friedery -- the senior vice president and chief operating officer of Ball Packaging Products, Americas -- said that the Alliance and Burlington closure costs will be cash flow neutral after tax benefits and proceeds from the sale of fixed assets and will reduce operating costs by US$8 million per year, starting in 2007. Mr. Friedery noted, "The opportunity to consolidate manufacturing operations into fewer facilities is critical to us realizing the synergies we knew were achievable following the acquisition. We are carefully studying our entire manufacturing structure and expect there will be other opportunities to improve efficiencies by further realigning production capacities. We anticipate work on our realignment plan to be completed during the fourth quarter, with implementation continuing in 2007." Mr. Friedery said employees at the facilities being closed will be paid severance and offered transition services. The Alliance plant has about 40 employees, while the Burlington plant has 300 workers. Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products. It owns Ball Aerospace & Technologies Corp. -- a developer of sensors, spacecraft, systems and components for government and commercial customers. Ball Corp. reported sales of US$5.7 billion in 2005 and the company employs about 13,100 people worldwide, including Argentina, Germany, France and the United Kingdom. * * * Moody's Investors Service assigned ratings to Ball Corp's US$500 million senior secured term loan D, rated Ba1, and US$450 million senior unsecured notes due 2016-2018, rated Ba2. It also affirmed existing ratings, which include Ba1 Ratings on US$1.475 billion senior secured credit facilities and US$550 million senior unsecured notes due Dec. 12, 2012. Moody's said the ratings outlook is stable. Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured credit facilities, and 'BB' senior unsecured notes. Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit rating on Ball Corp. All ratings were placed in March 2006. BALL 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 U.S. non-paper packaging sector this week, the rating agency confirmed its Ba1 Corporate Family Rating for Ball Corporation. Additionally, Moody's 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$715 million sr. secured multi-currency revolver due 2011 Ba1 Ba1 LGD4 52% US$35 million sr. secured revolver due 2011 Ba1 Ba1 LGD4 52% US$157.2 million sr. secured term loan A due 2011 Ba1 Ba1 LGD4 52% US$447.7 million sr. secured term loan B due 2011 Ba1 Ba1 LGD4 52% US$133.5 million sr. secured term loan C due 2011 Ba1 Ba1 LGD4 52% US$500 million sr. secured term loan D due 2011 Ba1 Ba1 LGD4 52% US$550 million sr. unsecured 6.875% notes due Dec 2012 Ba2 Ba1 LGD4 52% US$450 million sr. unsecured notes due Mar 2018 Ba2 Ba1 LGD4 52% 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 Broomfield, Colorado, Ball Corporation -- http://www.ball.com/-- offers metal and plastic packaging to the beverage and food industries worldwide. It offers aluminum and steel beverage cans for carbonated soft drinks, beer, energy drinks, and other beverages. BERRIVALE LTD: Nominates Andreas Georgiou Kakouris as Liquidator ---------------------------------------------------------------- Andreas Georgiou Kakouris was nominated Liquidator of Berrivale Ltd. on Oct. 6 for the creditors' voluntary winding-up procedure. Headquartered in London, United Kingdom, Berrivale Ltd. wholesales men's fashionable clothing. BETONSPORTS PLC: Has Not Paid Workers After Closure, Report Says ---------------------------------------------------------------- BetOnSports Plc has not paid its employees after it announced the closure of its Costa Rica and Antigua units in August, Inside Costa Rica reports. Inside Costa Rica relates that BetOnSports was expected to make the payment within weeks of closing. The company has said it would make good on its commitment to pay its workers. However, almost two months have passed and no payment was made to the workers, Inside Costa Rica notes. Yohan Camacho, one of the former workers of BetOnSports, told La Nacion, "As far as I know we are all in the same situation. No one has been paid. When asked, we are told that no one knows when payment will happen." Some of the workers have decided to buy out assets in lieu of payment as BetOnSports continues to liquidate. Others are considering legal options, Inside Costa Rica says, citing Mr. Camacho as its source. According to the report, former employees earned well working at BetOnSports and finding another equal paying job is difficult or impossible. Some workers got into debt, buying vehicles, real estate and running up their credit cards and now are struggling to meet their obligations. Franciso Conejo, the legal representative of BetOnSports, told Inside Costa Rica that the firm will make good and pay everyone but is asking for patience. BetOnSports is asking for 90 days and it hasn't even been 60 days since the closure, Inside Costa Rica says, citing Mr. Conejo. The Ministerio de Trabajo, which has been in contact with BetOnSports, confirmed to Inside Costa Rica that the company has intentions to pay. The Ministerio de Trabajo told Inside Costa Rica that it has not received any complaints from former workers. BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports' betting is illegal except in the State of Nevada. The group also has operations in Asia, specifically China. BOFLIN CONSTRUCTION: Claims Filing Period Ends Nov. 15 ------------------------------------------------------ Creditors of Boflin Construction Services Limited have until Nov. 15 to send in their full names, addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator Simon Paterson at: Moore Stephens LLP Victory House Admiralty Place Chatham Maritime Kent ME4 4QU United Kingdom The company can be reached at: Boflin Construction Services Limited 16 Common Road Chatham Kent ME5 9RG United Kingdom Tel: 01634 672 300 COLBYRNE PLANT: Creditors Confirm Voluntary Liquidation ------------------------------------------------------- Creditors of Colbyrne Plant Limited confirmed Oct. 4 the resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as Liquidators. The company can reached at: Colbyrne Plant Limited Unit 14 Abbey Way Sheffield South Yorkshire S25 4JL United Kingdom Tel: 019 0955 0991 Fax: 01909 562288 COLLINS & AIKMAN: Submits Severance Package for Laid-Off Workers ---------------------------------------------------------------- Collins & Aikman Corporation and its debtor-affiliates seek authority from the U.S Bankruptcy Court for the Eastern District of Michigan to pay severance benefits in connection with their planned reduction-in-force. As part of their ongoing efforts to cut costs and increase operational efficiency, the Debtors have determined, in consultation with JPMorgan Chase Bank, N.A., the administrative agent for their senior, secured prepetition lenders, and the Official Committee of Unsecured Creditors, to implement the RIF. In particular, the Debtors plan to reduce the number of salaried employees by approximately 125, representing approximately $7,600,000 in annual base salaries. The Debtors want to provide severance benefits to employees affected by the RIF. For these employees, the Debtors intend to give, upon execution of a release acceptable to the Debtors: (a) a severance package equivalent to (i) up to four weeks of base salary and (ii) any accrued and unused vacation; and (b) continued employee benefits for up to four weeks. The base salary component of the Severance Benefits would be subject to an aggregate limit of US$650,000. The cap does not include any payments to employees of non- debtors that may be affected by the RIF. Should additional reductions-in-force become necessary to complete their restructuring process, the Debtors intend to return to the Court for approval of severance-related benefits. Although the Severance Benefits may impose certain short-term costs, these costs are appreciably less than the operating losses associated with maintaining the corporate employees, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, tells Judge Rhodes. Furthermore, Mr. Schrock continues, the Debtors believe that failing to provide the Severance Benefits would only diminish employee morale at this critical time in their Chapter 11 cases, which in turn would hinder their efforts to efficiently carry out and complete the restructuring process. Mr. Schrock assures the Court that the Severance Benefits have been carefully structured to avoid unnecessary or excessive expenditure. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Wants Status Conference Held on October 26 ------------------------------------------------------------ Collins & Aikman Corporation and its debtor-affiliates strongly believe that it is appropriate to update the U.S. Bankruptcy Court for the Eastern District of Michigan regarding the status of several negotiations with their six principal customers regarding the global resolutions necessary to satisfy certain conditions to confirmation and for the Debtors to emerge from Chapter 11. Accordingly, the Debtors ask the Court to schedule a conference on Oct. 26, 2006, at 2:00 p.m., with the Official Committee of Unsecured Creditors; JPMorgan Chase Bank, N.A., the administrative agent for both their senior, secured prepetition lenders, and senior secured postpetition lenders; and the United States trustee. Given the sensitive and confidential nature of the information to be discussed, consistent with Section 107 of the Bankruptcy Code, the Debtors propose that the status conference take place in chambers or in a sealed courtroom. The Debtors tell Hon. Steven Rhodes that they filed a Joint Plan of Reorganization and an accompanying Disclosure Statement on Aug. 30, 2006. In September 2006, the Debtors obtained an extension of their exclusive right to (a) propose and file a plan to Oct. 27, 2006, and (b) solicit and obtain acceptances of that plan to Dec. 27, 2006. The Debtors continue to be engaged in the negotiations. In addition, the Debtors and the unofficial steering committee for the Debtors' senior secured prepetition lenders continue to be engaged in a dialogue with the Official Committee of Unsecured Creditors regarding a consensual plan. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CONSTELLATION BRANDS: Restates Certificate of Incorporation ----------------------------------------------------------- Constellation Brands Inc. filed a Certificate of Elimination with the Secretary of State for the State of Delaware effecting the elimination from the Company's Restated Certificate of Incorporation of all matters relative to its 5.75% Series A Mandatory Convertible Preferred Stock set forth in the Certificate of Designations. The Company disclosed that no shares of the Preferred Stock were issued and are outstanding following its automatic conversion into shares of the Company's Class A Common Stock on Sept. 1, 2006. The Company also disclosed that on Oct. 11, 2006 and following the filing and effectiveness of the Certificate of Elimination, it filed a Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, restating and integrating, without further amending, the Company's Certificate of Incorporation. A full text-copy of the Certificate of Elimination of the 5.75% Series A Mandatory Convertible Preferred Stock may be viewed at no charge at http://ResearchArchives.com/t/s?1372 A full text-copy of the Restated Certificate of Incorporation of Constellation Brands may be viewed at no charge at http://ResearchArchives.com/t/s?1373 Headquartered in Fairport, New York, Constellation Brands Inc. -- http://www.cbrands.com/-- engages in producing and marketing beverage alcohol brands in wine, imported beer, and spirits categories principally in the United States, the United Kingdom, Australia, and New Zealand. * * * As reported in the Troubled Company Reporter-Europe on Oct. 26, Moody's Investors Service's, in connection with its implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. beverage company sector, affirmed its Ba2 Corporate Family Rating for Constellation Brands Inc., and downgraded its Ba3 probability-of-default rating to B1. The rating agency also assigned its LGD6 loss- given-default ratings on the Company's US$250 million 8.125% Senior Subordinated Notes due Jan. 15, 2012, suggesting noteholders will experience a 95% loss in the event of a default. As reported in the Troubled Company Reporter on Aug. 14, 2006, Moody's Investors Service assigned a (P)Ba2 rating to Constellation Brands, Inc.'s new shelf and concurrently, a Ba2 rating to Constellation's new US$500 million senior unsecured note, due 2016. Constellation's existing ratings are not affected by these actions, and have been affirmed. The ratings outlook remains negative. CS PROPERTY: Hires Paul Appleton to Liquidate Assets ---------------------------------------------------- Paul Appleton of David Rubin & Partners was appointed Liquidator of CS Property Solutions Limited on Oct. 6 for the creditors' voluntary winding-up procedure. Headquartered in London, United Kingdom, CS Property Solutions Limited provides plumbing and home maintenance services. CT PACKAGING: Brings In UHY Hacker Young as Administrators ---------------------------------------------------------- Andrew Andronikou and Peter Kubik of UHY Hacker Young were appointed joint administrators of CT Packaging (U.K.) Ltd. (Company Number 05840445) on Sept. 25. The administrators can be reached at: UHY Hacker Young St Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 Headquartered in Wisbech, United Kingdom, CT Packaging (U.K.) Ltd. is engaged in paper, printing and publishing. DAMOVO GROUP: Weak Performance Prompts Moody's Junk Ratings ----------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Damovo Group S.A. to Caa1 from B2 following weak Q2 results and its announcement of a strategic review to address short-term liquidity. Moody's has concurrently downgraded the rating on notes issued at Damovo III SA to Caa2 from B3. Ratings have been placed on review for possible further downgrade. Ratings had had a negative outlook. Quarterly results to July 31, 2006 show that the company has been unable to reverse the decline in its top line performance and delays in Italian contract awards have continued. The company's liquidity position has deteriorated since Q1 and this is a key driver for the ratings downgrade. The company reported a cash balance at July 31, 2006 of EUR 51.1 million, down from EUR59.1 million at April 30, 2006. While cash receipts may tend to be seasonal with the second half year favored, the company reported continuing procedural delays in the approval by the Italian government of its receivables for factoring and the collection by factoring banks of cash payments due to them. This has negatively impacted cash flows and the company is now reviewing all options to improve short term liquidity, including deferring interest payment on Notes and other sources of finance whether or not permitted under existing covenants. Ratings have been placed on review for possible further downgrade to reflect Moody's view that the company's credit metrics and liquidity could weaken further and given uncertainty surrounding the strategic review and possible implications for note holders. Moody's review will be concluded once these matters have been clarified and assessed. Ratings actions: Damovo Group S.A. -- corporate family rating, downgraded to Caa1 from B2 Damovo III S.A. -- senior secured notes, downgraded to Caa2 from B3. Headquartered in Glasgow, Scotland, Damovo is a provider of information and communications technology (ICT) and services to public service organizations and larger private sector companies. For the twelve months to July 31, 2006, the company reported revenues of EUR483 million. DURA AUTOMOTIVE: Unit Unable to Make Interest Payment on Notes -------------------------------------------------------------- Dura Operating Corp., a wholly owned subsidiary of Dura Automotive Systems Inc., will not make the US$17,250,000 interest payment due on Oct. 16, 2006 on Dura Operating's outstanding 8-5/8% Senior Notes due 2012. The Indenture relating to the Notes provides a 30-day grace period before the nonpayment of interest due on the Notes will constitute an event of default under the Indenture. Upon any event of default, BNY Midwest Trust Company, the Trustee under the Indenture, or the holders of at least 25% in principal amount of the outstanding Notes, would be entitled to declare all of the Notes to be due and payable immediately. In addition, under the Indenture, following the thirty-day grace period, the Trustee could pursue any available remedy to collect the payment of principal and interest on the Notes or to enforce the performance of any provision of the Notes or the Indenture. Under the Indenture, the Dura Operating must pay interest on overdue installments of interest without regard to any grace period at the rate of 9-5/8% per annum. Currently US$400 million in aggregate principal amount of the Notes is outstanding. Event of Default The failure by Dura Operating to make the interest payment on the Notes will constitute an immediate event of default under Dura Operating's asset-based revolving credit facility. The failure by the Dura Operating to make the interest payment on the Notes upon the expiration of the 30 day grace period will also constitute an event of default under Dura Operating's outstanding 9% Senior Subordinated Notes due 2009 and Second Lien Term Loan. Upon any such event of default, the applicable trustee or administrative agent, as the case may be, or the holders of at least 25% in principal amount of the outstanding series of Senior Subordinated Notes or Second Lien Term Loan, will be entitled to declare all such indebtedness to be due and payable immediately. Dura Automotive had previously said that it is evaluating its capital structure with a focus on reducing its long-term debt. This financial restructuring would be in addition to the comprehensive operational restructuring that Dura Automotive is undertaking in response to challenging industry conditions. Industry conditions continue to deteriorate, with announcements over the past several weeks from all three North American OEMs of additional significant production cuts. In addition, raw material prices have continued to be at or near record levels. Dura expects that the deterioration of industry conditions will require it to undertake a debt restructuring in the near term. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- designs and manufactures driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. In Europe, the company maintains operations in Germany, the United Kingdom, France, Spain, Portugal, Czech Republic, Slovakia and Romania. DURA AUTOMOTIVE: Non-Payment of Interest Cues S&P's D Rating ------------------------------------------------------------ Standard & Poor's Ratings Services took the following rating actions on Dura Automotive Systems Inc. and its subsidiary, Dura Operating Corp., following the company's announcement that it will not make a required bond interest payment that is due [Mon]day: -- the corporate credit rating on Dura was lowered to 'D' from 'CCC'; -- the rating on Dura Operating's US$400 million senior notes due 2012, for which the interest payment is due, was lowered to 'D' from 'CC'; -- Dura's senior secured debt rating was lowered to 'CC' from 'CCC+' and placed on CreditWatch with negative implications. The '1' recovery rating on the secured debt was affirmed; and -- Dura's 'CC' subordinated debt rating was placed on CreditWatch with negative implications. Dura has suffered from poor operating results in recent years because of: -- lower vehicle production from its large U.S. customers, -- unfavorable product mix, -- higher-than-expected raw material costs, pricing pressure, and -- a bloated overhead cost structure relative to current revenue generation. Dura's recent financial results were substantially below prior- year levels: During the second quarter, EBITDA was down US$29 million (60%) from last year, and the company's free cash flow was negative US$50 million. Although automotive industry conditions were difficult during the second quarter, Dura's performance was much worse than expected. Industry pressures have intensified since the second quarter, and Standard & Poor's believes current financial performance has deteriorated further. Dura is evaluating its capital structure in light of earnings and cash flow pressures. The company exercised its right to defer dividend payments on its preferred stock earlier this month to preserve cash. "Dura has a 30-day grace period to make the interest payment on its senior notes before default would occur, but we do not expect the company to make the interest payment. We believe the risk of a bankruptcy filing in the next few weeks is high. If the company were to file for bankruptcy, the senior secured and subordinated debt ratings on the company would be lowered to 'D'," said Standard & Poor's credit analyst Martin King. EURAMAX INT'L: 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 Metals & Mining sectors, the rating agency confirmed its B2 Corporate Family Rating for Euramax 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: Issuer: Euramax International, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$80 Million Senior Secured First Lien Bank Facility due 2011 B2 B1 LGD3 34% US$319.3 Million Senior Secured First Lien Bank Facility due 2012 B2 B1 LGD3 34% US$190 Million Senior Secured Second Lien Bank Facility due 2013 Caa1 Caa1 LGD5 81% Issuer: Euramax Holdings Limited Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- EUR 71.3 Million Senior Secured First Lien Bank Facility due 2012 B2 B1 LGD3 34% GBP US$14.9 Million Senior Secured First Lien Bank Facility due 2012 B2 B1 LGD3 34% 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 Norcross, Georgia, Euramax International Inc. is an international producer of value-added aluminum, steel, vinyl, and fiberglass products. EUROPEAN MICRO: Files 2001 Financials With Going Concern Opinion ---------------------------------------------------------------- European Micro Holdings Inc. filed its annual report for the year ended June 30, 2001, with the U.S. Securities and Exchange Commission on Oct. 12, 2006. The 2001 Annual Report carries Weinberg & Company P.A.'s going concern opinion about the company's ability to continue as a going concern after the firm audited its consolidated financial statements for the year ended June 30, 2001. The auditor pointed to the Company's net losses, working capital deficiency, and accumulated deficit. For the year ended June 30, 2001, the Company reported an US$8,976,000 net loss on US$94,093,000 of total net sales compared with a US$3,207,000 net loss on US$115,493,000 of total net sales for the same period in 2000. At June 30, 2001, the Company's balance sheet showed US$14,068,000 in total assets, US$12,001,000 in total current liabilities, and US$2,067,000 in total shareholders' equity. The Company had a US$6,556,000 accumulated deficit at June 30, 2001. A full-text copy of the Company's 2001 Annual Report is available for free at http://ResearchArchives.com/t/s?1371 European Micro Holdings Inc. was an independent distributor of microcomputer products, including personal computers, memory modules, disc drives and networking products, to customers mainly in Western Europe and to customers and related parties in the United States and Asia. The Company's customers consisted of value-added resellers, corporate resellers, retailers, direct marketers and distributors. During July 2001, the management approved a plan for the liquidation and eventual sale or dissolution of the Company. Accordingly, it is engaged in an ongoing orderly liquidation of its assets. FC RECOVERY: Creditors' Meeting Slated for October 19 ----------------------------------------------------- Creditors of FC Recovery Limited (Company Number 04785490) will meet at 10:30 a.m. on Oct. 19 at: Smith & Williamson Limited No. 1 Bishops Wharf Walnut Tree Close Guildford Surrey GU1 4RA 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 Oct. 18 at: Anthony Murphy Joint Administrator Smith & Williamson Limited No 1 Bishops Wharf Walnut Tree Close Guildford GU1 4RA United Kingdom Tel: 01483 407 100 Fax: 01483 301 232 Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group employing over 1,200 people. It is the leading provider of investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. GARRY HEINS: Creditors' Meeting Slated for October 19 ----------------------------------------------------- Creditors of Garry Heins Limited (Company Number 01058033) will meet at 10:30 a.m. on Oct. 19 at: Bridgestones 125-127 Union Street Oldham Lancashire OL1 1TE 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 Oct. 18 at: Jonathan Guy Lord Joint Administrator Bridgestones 125-127 Union Street Oldham Lancashire OL1 1TE United Kingdom Tel: 0161 785 3700 Fax: 0161 785 3701 HILMAX ENGINEERING: Appoints Administrators from Vantis ------------------------------------------------------- Peter Wastell and Geoff Rowley of Vantis were appointed joint administrators of Hilmax Engineering Ltd. (Company Number 00733265) on Sept. 29. Headquartered in West Sussex, Vantis PLC -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Hilmax Engineering Ltd. can be reached at: Unit 31 Sedgewick Road North Luton Ind Est Luton Bedfordshire LU4 9DT United Kingdom Tel: 015 8257 3384 Fax: 015 8250 8868 ISLE OF CAPRI: Modifies Agreement for Singapore Project ------------------------------------------------------- Isle of Capri Casinos Inc. revised its agreement in connection with the proposal of Eighth Wonder, a privately held company engaged in resort development and based in Las Vegas, to build an integrated resort complex on Sentosa Island in Singapore. The Company disclosed that under the terms of the new agreements, it will own a 13.8% interest in Eighth Wonder's proposed Sentosa Island project. Should Eighth Wonder be the successful bidder in the Sentosa Island RFP, the Company's equity contribution will be US$65 million. It will also receive a payment equal to 2% of casino gross revenues for a 15-year period. Timothy Hinkley, president and chief operating officer, said, "Isle of Capri is pleased to continue our existing relationship with Eighth Wonder as we move through the RFP process in Singapore. The addition of Melco PBL brings significant Asian market gaming and hospitality expertise to the proposal and we look forward to presenting an exciting proposal to the Government of Singapore." About PBL PBL is a diversified media and entertainment group in Australia. The group's core businesses are gaming and entertainment; television production and broadcasting; magazine publishing and distribution; and strategic investment in key digital media and entertainment businesses. Led by Executive Chairman James Packer, PBL owns and operates the Crown Casino in Melbourne and Burswood Casino in Perth. It also owns the free-to-air television network, the Nine Network, and the largest magazine publisher, ACP Magazines. About Melco International Melco International Development Limited under the leadership of Chairman & CEO Lawrence Ho, is a conglomerate with a major business focus in Leisure, Gaming & Entertainment. The Group also operates the Jumbo Kingdom, with two other supporting lines of business in Technology and Investment Banking. Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- develops and owns gaming and entertainment facilities. The Company owns and operates riverboat and dockside casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier City and Lake Charles (two riverboats), La.; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Mo. The Company also owns a 57% interest in and operates land-based casinos in Black Hawk (two casinos) and Cripple Creek, Colorado. Isle of Capri's international gaming interests include a casino that it operates in Freeport, Grand Bahama, and a 2/3 ownership interest in casinos in Dudley, Walsal and Wolverhampton, England. The company also owns and operates Pompano Park Harness Racing Track in Pompano Beach, Fla. * * * Isle of Capri Casinos Inc.'s 'BB-' corporate credit rating is on Standard & Poor's Ratings Services' CreditWatch with negative implications. Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle of Capri Casinos in connection with its implementation of the new Probability-of-Default and Loss-Given- Default rating methodology for the Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of the Company's debts including a LGD5 rating on its 9% Sr. Sub. Notes, suggesting debt holders will experience a 76% loss in the event of a default. IWL COMMUNICATIONS: 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 Towers & Satellites sector, the rating agency confirmed its B2 Corporate Family Rating for IWL Communications Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these loans: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$30 million First Priority Sr. Sec. Revolving Facility B2 Ba3 LGD 2 28% US$93 million First Priority Sr. Sec. Term Loan B2 Ba3 LGD 2 28% US$45 million Second Priority Sr. Sec. Term Loan B3 B3 LGD 5 75% 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 Houston, Texas, IWL Communications Inc. (dba CapRock Communications) -- http://www.caprock.com-- provides satellite communications services for miners in the Rockies and rocket launchers in Iraq. The company offers secure voice, data, fax, and video conferencing services primarily to customers that operate in remote locations and/or harsh environments. The company has a European office and network facility in Aberdeen, Scotland. JFL AUTOMOTIVE: Creditors' Meeting Slated for October 24 -------------------------------------------------------- Creditors of JFL Automotive Limited (Company Number 00506874) will meet at 10:00 a.m. on Oct. 24 at: KPMG LLP 2 Cornwall Street Birmingham B3 2DL 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 Oct. 23 at: Mark Jeremy Orton Joint Administrator KPMG LLP 2 Cornwall Street Birmingham West Midlands B3 2DL United Kingdom Tel: 0121 232 3000 Fax: 0121 232 3500 KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. LASHMORE EUROPEAN: Brings In Liquidator from Fisher Partners ------------------------------------------------------------ Stephen M. Katz of Fisher Partners was appointed Liquidator of Lashmore European Transport Limited on Oct. 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Lashmore European Transport Limited 138 St. Osyth Road West Little Clacton Clacton-On-Sea Essex CO16 9NY United Kingdom Tel: 01255 862082 LIBERTY CONTRACTS: Creditors Ratify Voluntary Liquidation --------------------------------------------------------- Creditors of Liberty Contracts Limited ratified on Oct. 3 the resolutions for voluntary liquidation together with the appointment of Alan H. Tomlinson as Liquidator. The company can be reached at: Liberty Contracts Limited Unit 1 2 Rosehill Business Park 2 10 St. Lukes Road Southport Merseyside PR9 0SH United Kingdom Tel: 01704 544 355 LIFE OF LEISURE: Taps Stephen Gordon Franklin as Administrator -------------------------------------------------------------- Stephen Gordon Franklin of Panos Eliades Franklin & Co. was appointed administrator of Life of Leisure Ltd. (Company Number 4136568) on Oct. 2. The administrator can be reached at: Panos Eliades Franklin & Co. Albany House 18 Theydon Road London E5 9NA United Kingdom Tel: 020 8815 4000 Fax: 020 8815 4040 Life of Leisure Ltd. can be reached at: Unit 4 The Quadrant Alcester St Redditch Worcestershire B98 8AE United Kingdom Tel: 01527 591180 LUXFER HOLDINGS: Inks Deal to Reorganize Balance Sheet ------------------------------------------------------ Luxfer Holdings Plc entered into an agreement for the reorganization of its balance sheet with an informal group of holders of the Company's 10.125% Senior Notes due May 1, 2009. The Noteholder Group represents approximately 67% of the total outstanding GBP131.4 million of Notes. The proposed reorganization, if it achieves the requisite approvals, is expected to result in a significant reduction of the Company's debt and interest expense and a consequent reduction in financial risk. The Directors believe that the proposed reorganization will provide the Group with a stable and strengthened capital structure and provide additional free cash flow to invest in targeted growth opportunities and cost saving projects. The Reorganization Agreement provides for the Company's stakeholders to receive: -- Noteholders: Noteholders will be exchanging all of their existing unsecured Senior Notes, including the accrued interest thereon up to the date of the proposed reorganization, and investing GBP3.050 million of cash, in return for GBP71.575 million of new unsecured Senior Notes and 87% of the post reorganization share capital of the Company. Noteholders will also receive GBP8.45 million in cash which they will use to buy out the shares of non- management shareholders. The New Notes will have a new five-year maturity date and be priced with a cash element of Six Month LIBOR+450 basis points and a payment in kind element of 150 basis points accruing on a compound basis from Nov. 1, 2006. The payment in kind element on the New Notes will step down to 100 basis points so long as the Company achieves a rating above CCC+ or Caa1. The Company and Noteholder Group are in the process of agreeing the detailed documentation of the New Notes. The New Notes will be non-callable for the first year after being issued and will be callable by the Company at 103%, 102%, 101% and 100% of par in each subsequent year thereafter. -- Shareholders: Shareholders other than certain management shareholders, holding approximately 85% of current share capital, will receive GBP8.45 million from Noteholders in return for their existing equity stake, equating to approximately 7.4p per share, for both the Company's GBP0.6487 preference and ordinary shares. -- Management: Certain management will exchange their stake of approximately 15% of current share capital in the Company for 13% of the post reorganization share capital, with the economic benefit to a proportion of these shares being dependent on the Company's future success -- Five-percent Cumulative GBP0.6487 preference share capital: As part of the proposed reorganization, the five-percent cumulative preference share capital will be exchanged into a combination of new ordinary share capital and deferred shares, which under International Financial Reporting Standards will reduce the Company's balance sheet liabilities by GBP110.8 million, based on the accrued liability outstanding at June 30, 2006. The Group reported at the half year that it had incurred GBP1.4 million of advisory costs in relation to the proposed reorganization. The total cost for the proposed reorganization has been projected to be approximately GBP5 million. The proposed reorganization will therefore eliminate the preference share liability and achieve a reduction in the Group's outstanding notes of GBP59.825 million, offset by an increase in drawings on senior secured debt facilities of approximately GBP10 million in order to meet the proposed reorganization's funding requirements. The Group currently has a GBP45 million asset backed secured bank facility with Bank of America. Under the proposed indenture terms for the New Notes, the Group will be permitted to incur total senior secured debt of up to GBP60 million, giving the Group the potential to raise a further GBP15 million of liquidity. Plan Implementation The proposed reorganization will affect no other category of creditors. It is intended that the proposed reorganization will principally be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985 between the Company and the holders of its Notes and the proposed reorganization is conditional upon, inter-alia, the Scheme becoming effective. The Noteholder Group includes representatives of nine different institutions and fund managers, four of which comprise an ad hoc committee, which has been in discussions with the Company since April 2006. All the members of the Noteholder Group and the Company have entered into a reorganization agreement, which includes undertakings to support and implement the Scheme and the Reorganization and offers holders of Notes the opportunity to subscribe for New Notes. Holders of Notes who are not yet party to the Reorganization Agreement, but are interested in becoming so, are invited to contact the legal advisers to the Ad Hoc Committee, Bingham McCutchen LLP. A number of the Company's shareholders, including the two major institutional shareholders, have entered into undertakings to support the implementation of the Reorganization, which will also involve a scheme of arrangement amongst the Company's shareholders, and the Reorganization will also be conditional upon that scheme becoming effective. It is expected that the proposed reorganization will be completed at the end of the current financial year, or early in 2007, and further announcements will be made as appropriate. "The terms of the proposed reorganization will greatly enhance the Group's balance sheet and provide the basis of a solid and stable capital structure," Brian Purves, Chief Executive, commented. "The substantial reduction in debt will increase the Group's financial liquidity and thereby place Luxfer in a strong position to develop its business through investing in exciting growth opportunities, whilst continuing to provide the highest possible level of service to its customers." Trading Update Luxfer has in recent years been burdened with high leverage against a backdrop of volatile markets. In response to these pressures, Luxfer has been implementing a profit improvement plan consisting of a series of cost saving projects and price increases. This new Group-wide initiative had been launched by the executive management team in late 2005 and had targeted profit improvement opportunities in 2006 of over GBP15 million to offset significant cost increases. The unaudited interim financial results for the six months ended June 30, 2006, which were released in August this year, demonstrated improvement upon the unaudited six months ended June 30, 2005. The performance was in line with the Group's own forecasts and the profit improvement plan. The unaudited EBITDA for the six months ended June 30, 2006 increased by around GBP1.7 million to GBP13.8 million, an increase of approximately 14% compared to the unaudited six months ended June 30, 2005. The increase was mainly driven by sales growth and successful implementation of cost reduction actions. At the half year the Group reported that higher raw material and U.K. energy costs were a continued cause for concern and the Group had implemented a series of price increases to recover a significant element of these cost increases. As at June 30, 2006 the unaudited interim financial balance sheet reported drawings on senior secured facilities of GBP12 million and GBP2.9 million of cash and short term deposits. Financial Projections In agreeing the Reorganization Term Sheet with the Noteholder Group, financial projections were provided by Luxfer to the Noteholder Group for the remainder of 2006 and for a further 30 months after the proposed reorganization completion date. These projections are subject to the risks associated with forward- looking statements as further explained in the statement at the end of this press release. For the half-year June 30, 2006, the Gas Cylinders and Speciality Aluminium divisions had suffered from a significant rise in aluminium costs, however the Elektron division had increased its unaudited trading profit to GBP6.3 million, from GBP3.7 million as reported in the first half year of 2005. The financial projections for the remainder of 2006 assumed this improvement in the Elektron division continued, whilst the other divisions were able to recover a significant element of the aluminium cost increases through price increases, to enable the Group to attain approximately GBP26 million EBITDA for the full year. Year to date trading is consistent with this forecast. Projections beyond 2006 were used to demonstrate the benefits of potential growth opportunities, additional production automation and the successful completion of the Group's profit improvement plan. The growth opportunities outlined were based on new products the Group has been developing over the last few years, which were described in its December 2005 Report to Noteholders. The financial projections anticipated that the Group would be able to grow rolling last twelve months EBITDA to approximately GBP32 million by 18 months after the Completion Date, increasing to approximately GBP38 million LTM EBITDA after 30 months from the Completion Date. The estimated EBITDA growth in the projections provided to the Noteholder Group assumed the Group was able to increase its sales revenue to approximately GBP245 million for the full year to December 2006, approximately a 6.5% increase when compared to the previous year. The financial projections provided for LTM revenue to grow to approximately GBP265 million by 18 months from the Completion Date, and then to approximately GBP288 million after 30 months from the completion date. Unaudited group revenue for the first half of 2006 was approximately 8% higher than the first half of 2005, driven by a mixture of volume growth and increased selling prices. The increase in divisional revenues over the 30-month financial projection period was roughly in line with proportions to 2005 Group revenues, although the Elektron division's projections assumed a slightly higher level of growth than the other divisions. The Gas Cylinders division remained the largest division by measure of revenue. The financial projections were based on the average price of aluminium and other major input costs remaining at current levels, the US$:GBP exchange rates averaging US$1.78 in 2006, then being US$1.75 for the 30-month period. Based upon such assumptions, over the 30 months following the Completion Date the financial projections included approximately GBP30 million of capital expenditure, with approximately GBP18 million of capital expenditure planned in the first 18 month period following the Completion Date and approximately a further GBP12 million planned for the following 12-month period. The total capital expenditure over the 30-month period was estimated to include approximately an additional GBP14 million more than would have been invested without the proposed reorganization. This increase in capital expenditure was required to support and help generate the growth and cost saving opportunities identified in Luxfer's two main divisions, Gas Cylinders and Elektron. Both these divisions are seen by Luxfer's senior management to have some strong market positions and have been developing new products over the past few years to target future growth markets. Given the growth opportunities being pursued, the Group's manufacturing facilities would need to be expanded, but under the current capital structure the Group is constrained in its ability to meet these long-term capital expenditure requirements with resources directed towards essential and high priority projects only. The EBITDA growth of approximately GBP15 million in the financial projections, from the 2005 result of GBP22.8 million before exceptionals to the projection of approximately GBP38 million after 30 months, included further growth in earnings from the Elektron division, with this division contributing to just over half the Group's improvement through expansion of its zirconium catalyst and magnesium sheet and alloy operations. Around half of the capital expenditure in the 30-month period was assumed to be directed at the Elektron division to support its expansion strategy. The Gas Cylinders division had planned to continue to invest in its composite cylinder and superform operations, with the proposed reorganization enabling it to also benefit from a substantial increase in capital expenditure; slightly less than that of the Elektron division. The projections for the Speciality Aluminium division included only modest levels of additional capital expenditure and profit improvement. The financial projections include opportunities to modernise and automate certain production processes, andover time, several million pounds of cost savings are targeted through automation projects; however the financial projections assumed that the main contributions to increased levels of EBITDA were through expanding sales revenue and production capacity in growth markets. Based on the proposed Reorganized capital structure, the planned capital expenditure and attainment of the projected EBITDA levels above, the Group projected a cash flow before interest, tax payments, reorganization costs and cash proceeds from the Zitzmann disposal, of approximately GBP17 million for the year ending December 2006, with the rolling LTM cash flow being projected to be approximately GBP16 million 18 months from the Completion Date and then rising to approximately GBP22 million after 30 months from the Completion Date. The above EBITDA and cash flow projections had been prepared on the assumption the Zitzmann die-casting business remained part of the Elektron division, though it was highlighted to the Noteholders as a potential strategic disposal, with the objective of reinvesting the proceeds back into the Elektron division to deliver at least a similar level of financial return. The Group sold the Zitzmann die-casting business in early August 2006 with the proceeds being received in September 2006. As yet the proceeds have not been reinvested, although discussions are underway regarding a potential investment opportunity. The improved financial status of the Group would also provide other benefits to aid Luxfer's financial and commercial performance, including a more stable platform for developing long-term customer and supplier relationships, as well as the ability to hedge its aluminium price risk. In the past year the Group had suffered from a lack of hedging capacity and at the end of 2005 it had only hedged forward 16% of its 2006 aluminium purchase requirements compared to 50% to 60% in previous years. The proposed reorganization should enable the Group to return to a more robust level of aluminium price hedging. The cash flow projections did not include any significant increase in the funding requirements of the Group's retirement benefit schemes. The Group's U.K. Pension Trustees have commenced their triennial actuarial review of the Group's U.K. defined benefit pension fund, the results of which are not expected to be finalized by the Trustees and agreed with the Group until early 2007. Once agreed, a formal plan to remediate any deficit has to be submitted and agreed with the U.K. Pensions Regulator. As at June 30, 2006 the unaudited IAS 19 accounting deficit was GBP18.5 million for this U.K. plan and the Group's total unaudited IAS 19 accounting deficits totalled GBP23.9 million. In respect of the proposed reorganization the Company is receiving financial advice from Close Brothers Corporate Finance Limited and legal advice from Cleary Gottlieb Steen & Hamilton LLP. The Ad Hoc Committee is receiving financial advice from Houlihan Lokey Howard & Zukin (Europe) Limited and legal advice from Bingham McCutchen LLP. Conference Call The company will be holding an investor conference call on the proposed reorganization at 3:00 p.m. BST on Oct. 20. Headquartered in Manchester, United Kingdom, Luxfer Holdings PLC -- http://www.luxfer.com/-- specializes in the design and manufacture of high-pressure aluminium gas cylinders, as well as aluminium, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. Luxfer has operations in the United Kingdom, the United States, Australia, Germany, France and the Czech Republic. LUXFER HOLDINGS: Fin'l. Reorganization Cues Moody's Junk Ratings ---------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Luxfer Holdings Plc to Caa3 from Caa2 following notice of their financial reorganization. Moody's concurrently downgraded the rating on the 2009 notes issued by Luxfer to Ca from Caa3. The outlook is stable. The restructure is expected to be executed under a Scheme of Arrangement. Terms of the restructure include cancellation of the existing 2009 notes and the accrued interest thereon to the date of the proposed reorganization and the release of the company from all obligations and liabilities, in exchange for new notes of an aggregate amount of GBP68.525 million. Note holders will also subscribe in cash for additional new notes for an aggregate of GBP3.050 million. Note holders will receive GBP8.45 million in cash, which must be applied to purchase 87% of the total equity in the company, comprising existing ordinary and preference shares. As part of the reorganization the 5% cumulative preference share capital will be exchanged into a combination of new ordinary share capital and deferred shares. Moody's note that under IFRS these preference shares, totaling GBP110.8 million as at June 30, 2006, would be removed from balance sheet liabilities. The balance (13%) of equity will be retained by management and be subject to restrictions. Moody's classifies this reorganization as a default since note holders will incur a shortfall on the par value of the existing notes. In this circumstance Moody's assumes a zero value for equity exchanged for the cancellation of the notes. With around GBP130 million of notes on issue, this results in an expected recovery of around 53% on the par value of existing notes. On completion of the reorganization, leverage will be lower and financial flexibility will be improved. This will give the company a stronger financial base and a lower credit risk profile. This should also assist to raise customers' view of the company and add flexibility for re-investment in the business. Moody's will withdraw the rating on the existing 2009 notes once these have been cancelled. The reorganization is conditional on the Scheme becoming effective. The reorganization will also require shareholder approval. Ratings actions: Luxfer Holdings Plc -- corporate family rating, downgraded to Caa3 from Caa2; and -- 10.125% senior notes due 2009, downgraded to Ca from Caa3. Headquartered in Manchester, United Kingdom, Luxfer specializes in the design and manufacture of high-pressure aluminium gas cylinders, as well as aluminium, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. For the last twelve months to June 30, 2006, Luxfer reported consolidated revenues of around GBP240 million. MANDIS INFORMATION: Calls In Liquidators from Begbies Traynor ------------------------------------------------------------- Paul Finnity and Peter Blair of Begbies Traynor were appointed Joint Liquidators of Mandis Information Services Limited on Oct. 5 for the creditors' voluntary winding-up proceeding. Headquartered in Nottingham, United Kingdom, Mandis Information Services Limited -- http://www.mandis.co.uk/-- delivers a continuous flow of bulletins about companies experiencing change - expanding, recruiting, investing, relocating or restructuring that empowers an organization to identify new business opportunities. MANTAVOGUE LIMITED: Liquidators Set Nov. 2 Claims Bar Date ---------------------------------------------------------- Creditors of Mantavogue Limited have until Nov. 2 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 at: Neville & Co. 10 & 11 Lynher Building Queen Anne's Battery Plymouth PL4 0LP United Kingdom The company can be reached at: Mantavogue Limited The Warehouse Bilbury Street Plymouth Devon PL4 0BH United Kingdom Tel: 01752 600 150 Fax: 01752 250 525 MARBLE ARCH: Fitch Assigns BB Rating to GBP25.2 Million Notes ------------------------------------------------------------- Fitch Ratings assigned expected ratings to Marble Arch Residential Securitization Limited 4's GBP equivalent 840 million mortgage-backed floating-rate notes due in 2040 as: -- GBP equivalent 252 million Class A1 due 2023: AAA; -- GBP equivalent 189 million Class A2 due 2040: AAA; -- GBP equivalent 231 million Class A3 due 2040: AAA; -- GBP equivalent 58.8 million Class B due 2040: AA; -- GBP equivalent 44.1 million Class C due 2040: A; -- GBP equivalent 39.9 million Class D1 due 2040: BBB-; and -- GBP equivalent 25.2 million Class E1 due 2040: BB. The final ratings are contingent on the receipt of final documents conforming to information already received. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting processes of the originators Matlock Bank Limited, Langersal No. 2 Limited, Southern Pacific Mortgage Limited and Southern Pacific Personal Loans. They also consider the servicing capabilities of both Vertex Financial Services Limited and Lightfoots and the sound legal structure of the transaction. Credit enhancement for the Class A notes is initially 21.5%, which is provided by the subordination of the Class B notes, the Class C notes, Class D1 notes and the Class E1 notes. The reserve fund is fully funded at closing. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall, and that it can retire the principal by legal final maturity. MORPHEUS PLC: Fitch Affirms BB- Rating on GBP12.4 Million Notes --------------------------------------------------------------- Fitch Ratings affirmed Morpheus (European Loan Conduit No.19) plc's commercial mortgage-backed floating rate notes due November 2029 as: -- GBP233.8 million Class A (XS0198508110) at AAA; -- GBP27.4 million Class B (XS0198508896) at AA; -- GBP24.2 million Class C (XS0198509431) at A; -- GBP17.9 million Class D at BBB; and -- GBP12.4 million Class E at BB-. The transaction is performing in line with Fitch's expectations. The collateral pool currently consists of 254 commercial loans, which are secured on 480 properties. The outstanding balance of the notes is currently GBP317.9 million compared with GBP581.9 million at issuance. The collateral balance has reduced following scheduled amortization and significant prepayments applied to a modified pro-rata structure. This has resulted in a steady but continued increase of credit enhancement levels. The current weighted average interest coverage ratio of 1.92x has improved since closing. Likewise the weighted average loan- to-value has improved to the current value of 64.85% from 73.25% at closing. In the past year the transaction has experienced an increased level of arrears, with six loans classified as delinquent totaling GBP1.8 million. Furthermore the vacancy rate across the pool has increased to 7.56% from 4% at closing. It should be noted, however, that the reporting of these figures had changed during this period. Since October 2005 these figures have been based on the largest 50 loans, compared with the largest 25 before. The transaction includes a turbo amortization mechanism applied to the Class E notes, which allows the transaction to use a portion of excess spread to partially repay the Class E notes, thus creating overcollaterization. The Class D and E notes are subject to an available funds cap, whereby interest shortfall on these notes in any one period repayment will be written off. The structure benefits from a liquidity facility with an initial limit of GBP25 million to cover temporary interest shortfall on the notes. NEWGATE 2006-3: Moody's Assigns (P)Ba2 Rating on Class E Notes -------------------------------------------------------------- Moody's Investors Service assigned these provisional long-term credit ratings to the Notes to be issued by Newgate 2006-3: -- Class A1 Mortgage Backed Floating Rate Notes due Dec 2050: (P)Aaa; -- Class A2 Mortgage Backed Floating Rate Notes due Dec 2050: (P)Aaa; -- Class A3 Mortgage Backed Floating Rate Notes due Dec 2050: (P)Aaa; -- Class M Mortgage Backed Floating Rate Notes due Dec 2050: (P)Aa1; -- Class B Mortgage Backed Floating Rate Notes due Dec 2050: (P)Aa3; -- Class C Mortgage Backed Floating Rate Notes due Dec 2050: (P)A3; -- Class D Mortgage Backed Floating Rate Notes due Dec 2050: (P)Baa3; -- Class E Mortgage Backed Floating Rate Notes due Dec 2050: (P)Ba2; and -- 2006-3 Mortgage Early Repayment Certificates due December 2050: (P)Aaa. The Class T and Class Q Notes are not rated by Moody's. Classes A1, A2, A3, M, B, C and D Notes may be issued in GBP, EUR or USD depending on market demand. The Issuer, Newgate Funding plc, is a special purpose vehicle incorporated in England and Wales, which is ultimately owned by a charitable trust. The Issuer is a multi-issuance vehicle and this transaction represents the third series to be issued under its MTN style Program. The Issuer will fund the purchase price of the series mortgage portfolio using the proceeds of the Notes. This transaction is the tenth securitization of non-conforming and impaired credit mortgage loans originated by entities belonging to the Mortgages Group trading under the name of "Mortgages PLC". As in the prior Mortgages plc securitization, the assets supporting the Notes are sub-prime and non-conforming first residential mortgage loans originated by entities trading under the name of Mortgages PLC and secured on residential properties in United Kingdom, Wales, Northern Ireland and Scotland. A part of underlying loan portfolio (approximately 49%) consists of loans to borrowers classified by the originator as "near prime" or "near prime plus", with stricter criteria for adverse credit compared to non-conforming mortgage loans. Mortgages PLC will be responsible for the day-to-day servicing of the loans, handling arrears cases and approving further advances and product conversions. The ratings of the Notes are based upon an analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, and the legal and structural integrity of the issue. The credit enhancement available in the deal is provided in the form of excess spread, reserve fund fully funded at [1.3]% of the original note, subordination of the Class M [2.51]%, Class B [6.08%], Class C [3.80%], Class D [2.40%] and Class E [0.91%] Notes. The Class A1 Notes represent [32.05%], the Class A2 Notes represent [27.2600%] and the Class A3 Notes represent [25.00%]). Subject to certain conditions being met, the reserve fund may amortize up to a floor of [0.50%] of the original note balance. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings only represent Moody's preliminary credit opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign a definitive rating to the Notes. A definitive rating may differ from a provisional rating. Moody's will disseminate the assignment of any definitive ratings through its Client Service Desk. The ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. The Mortgage Early Repayment Certificates (MERC) are backed solely by mortgage early redemption charges that may become payable by borrowers in the pool on early redemption of their loans within a certain period. The (P)Aaa rating on the MERC's addresses the likelihood of receipt by MERC holders of such amounts if they are received by the Issuer. It assumes, without any independent investigation, that payment of the mortgage early redemption charges under the mortgage loans is legally valid, binding and enforceable, and that such amounts are actually collected from borrowers and received by the Issuer. The amount receivable by MERC holders also depends on prepayment rates within the pool. The rating does not address such prepayment rates. ON-TIME EUROPEAN: Taps David Acland to Liquidate Assets ------------------------------------------------------- David Acland of Begbies Traynor was appointed Liquidator of On-Time European Logistics Limited on Oct. 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: On-Time European Logistics Limited 133 Milton Street Southport Merseyside PR9 7AP United Kingdom Tel: 01704 225 491 OPEN TEXT: Closes Hummingbird Equity Purchase for US$489 Million ---------------------------------------------------------------- Open Text Corporation and Hummingbird Ltd. closed the transaction pursuant to which all of Hummingbird's common shares were acquired by a wholly owned subsidiary of Open Text. Open Text, through 6575064 Canada Inc., acquired all of the issued and outstanding common shares of Hummingbird at a cash price of US$27.85 per common share which, together with the 764,850 common shares of Hummingbird owned by Open Text prior to the transaction, represent all of the issued and outstanding shares of Hummingbird. The transaction is valued at approximately US$489 million and was disclosed by Open Text on Aug. 4, 2006. The transaction was completed pursuant to a plan of arrangement under section 192 of the Canada Business Corporations Act and an arrangement agreement made as of Aug. 4, 2006, which was amended on Sept. 19, 2006, among 6575064 Canada Inc., Open Text and Hummingbird. Under the plan of arrangement Hummingbird's shareholders are entitled to receive US$27.85 in cash for each Hummingbird common share. About Hummingbird Based in Toronto, Ontario, Hummingbird Ltd. (NASDAQ:HUMC, TSX:HUM) -- http://www.hummingbird.com/-- provides enterprise software solutions. The Company's enterprise software solutions fall into two principal categories: enterprise content management solutions, and network connectivity solutions. Founded in 1984, Hummingbird employs over 1,400 people and serves more than 33,000 customers, including 90% of Fortune 100. Hummingbird solutions are sold directly from 40 offices worldwide and through an Alliance Network of partners and resellers. About Open Text Headquartered in Waterloo, Ontario, Open Text Corporation (NASDAQ:OTEX, TSX:OTC) -- http://www.opentext.com/-- provides Enterprise Content Management solutions that bring together people, processes and information in global organizations. The company supports approximately 20 million seats across 13,000 deployments in 114 countries and 12 languages worldwide. * * * As reported in the Troubled Company Reporter on Sept. 18, 2006, Moody's Investors Service assigns a first-time Ba3 rating to the senior secured facilities and B1 rating to the corporate family of Open Text Corp. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss-given-default of LGD-2 for the senior secured facilities. Moody's also assigned a SGL-1 speculative grade liquidity rating, reflecting very good liquidity. Moody's said the ratings outlook is stable. PHOENIX COMPUTER: Hires Liquidator from Begbies Traynor ------------------------------------------------------- Lloyd Biscoe of Begbies Traynor was appointed Liquidator of Phoenix Computer Sales and Training Limited on Sept. 27 for the creditors' voluntary winding-up proceeding. The company can be reached at: Phoenix Computer Sales and Training Limited Chelford Court 37a Robjohns Road Chelmsford Essex CM1 3AG United Kingdom Tel: 01245 356 533 Fax: 01245 356 534 POWERED ACCESS: Calls In Liquidators from Rimmer Higson ------------------------------------------------------- Timothy Hargreaves of Rimmer Higson was appointed Liquidator of Powered Access Haulage Limited on Oct. 4 for the creditors' voluntary winding-up proceeding. The company can be reached at: Powered Access Haulage Limited 20 Bluebell Way Bamber Bridge Preston Lancashire PR5 6XQ United Kingdom Tel: 01772 338331 REFCO INC: Court Gives Tentative Nod on Disclosure Statement ------------------------------------------------------------ The Hon. Robert Drain of the United States Bankruptcy Court for the Southern District of New York granted Oct. 16, 2006, a tentative approval on the modified Amended Disclosure Statement explaining the Amended Joint Chapter 11 Plan of Refco, Inc., and its debtor-affiliates, The Associated Press reports. According to AP, Judge Drain said Refco still needed to fix a few other deficiencies, including: (a) an explanation why its asset-distribution plan favors subordinated noteholders; (b) clarification on how Refco arrived at the allocation of proceeds obtained from a $506,000,000 settlement with Bawag P.S.K. Group; and (c) a detailed explanation on how Refco will resolve claims among its subsidiaries. Judge Drain added that the Disclosure Statement should explain why Refco Capital Markets, Ltd., "ends up with the only inter- debtor, inter-company claims," AP reports. AP states that Judge Drain hoped the request for new details "does not lead to days of debate." Judge Drain said the Debtors "should be able to come up with these disclosures pretty quickly," according to AP. The Court will commence a hearing to consider confirmation of the Debtors' Amended Plan on December 15, 2006. The Official Committee of Unsecured Creditors, the Additional Committee of Unsecured Creditors, and Marc S. Kirschner, the Chapter 11 trustee for the estate of Refco Capital Markets, Ltd., are co-proponents of the Plan. The Plan Proponents intend that the Plan become effective no later than December 31, 2006. Objections to Disclosure Statement The Ad Hoc Committee of Equity Security Holders of Refco, Inc., had asked the Bankruptcy Court to deny approval of the Debtors' Disclosure Statement because it describes a Plan that: (i) effectively consolidates parent level entities with other debt-laden, subsidiary estates without factual or legal basis; (ii) provides the parent equity holders with less than they would receive in a Chapter 7 liquidation; and (iii) incorporates other improper provisions. West Loop Associates, LLC, which asserts claims against the Debtors in excess of $67,000,000, complained that the Debtors' Disclosure Statement is devoid of any meaningful information that would give unsecured creditors any basis for evaluating their estimated recoveries under the Plan. Kenneth Krys and Christopher Stride, as joint official liquidators of SPhinX Managed Futures Fund SPC and 21 of its affiliates, wanted the Debtors' Disclosure Statement revised to address and clarify certain matters with respect to: (a) the Liquidators' investigation into the defense of a $312,000,000 preference action commenced by the Official Committee of Unsecured Creditors of Refco, Inc., et al., against certain of the SPhinX Funds and the circumstances surrounding settlement of the action; (b) the Liquidators' interest in the Preferential Action settlement, in which SMFF agreed to pay Refco Capital Markets, Ltd., $263,000,000; (c) the Liquidators' request that the Bankruptcy Court reconsider its decision and order regarding the status of the SPhinX Funds' Cayman Islands liquidation proceeding as a "foreign non-main proceeding" contained in the Disclosure Statement and the Plan; and (d) releases, exculpation clauses and injunctions contained in the Disclosure Statement. RH Capital Associates LLC, and Pacific Investment Management Company LLC, are lead plaintiffs in a securities class action entitled, In re Refco Inc. Securities Litigation, Case No. 05-Civ.-8626 (GEL), as amended, filed in the U.S. District Court for the Southern District of New York. RH Capital and Pacific Investment complained that the Disclosure Statement and the Plan are ambiguous and omit material facts that may mislead or preclude holders of claims or interests from making an informed judgment about the Plan. Russia Growth Fund Ltd., a "customer" of Refco Capital Markets, Ltd., under Section 741(2) of the Bankruptcy Code, and a holder of an RCM Securities Customer Claim under the Debtors' First Amended Joint Plan of Reorganization, said that the Disclosure Statement fails to provide any further information about the likely conversion of RCM's case, which, obviously, is a critical aspect of the Plan from the point of view of Class 4 RCM Customer Claimholders. Hillier Capital Management, LLC, and certain other related creditors in the Debtors' Chapter 11 cases also asked the Court to deny approval of the Debtors' Disclosure Statement because it does not contain complete and accurate information with respect to the essential terms of various proposed settlements, which served as the foundation for formulating the Plan of Reorganization. The Ad Hoc Refco F/X Customer Committee echoed Hillier Capital's sentiments and also also complained that the Disclosure Statement lacked adequate information regarding FXA's decision to waive its approximately $84,000,000 claim against RCM. Modified Disclosure Statement To resolve various issues with regard to the Disclosure Statement, the Debtors, the Creditors' Committee, the Additional Creditors Committee, and the Chapter 11 trustee, had delivered to the Court, on Oct. 13, a modified Disclosure Statement with respect to their First Amended Plan. The Modified Disclosure Statement incorporates the Plan Proponents' consolidated response to the Disclosure Statement Objections. The Plan Proponents assert that a number of the Disclosure Statement Objections are, in reality, objections to Plan confirmation rather than to the adequacy of the disclosure. Those objections, if left unresolved through negotiations that will no doubt take place between the parties after the Disclosure Statement hearing, should be considered at the proposed Plan confirmation hearing on December 15, 2006. To obviate the need for formal objections, the Plan Proponents encouraged parties-in-interest who had disclosure concerns to communicate their concerns to the Plan Proponents informally. Thus, a number of potential objections were informally resolved and the modified Disclosure Statement now contains language reflecting those resolutions. In addition, the Plan Proponents modified in some instances the Disclosure Statement to correct and update previously reported information. None of the Objections to Plan confirmation lead to the conclusion that it is impossible to confirm the Plan as written. Therefore, the Plan Proponents ask the Court to overrule all Objections and approve the Modified Disclosure Statement. A blacklined copy of the Modified Disclosure Statement is available at no charge at http://ResearchArchives.com/t/s?1387 Plan Proponents' Reply to FXA Customers' Objection To provide full disclosure to the Refco F/X Associates, LLC customers regarding the basis for their claims classification, the Plan Proponents modified their Disclosure Statement to add provisions supplementing the description of how FXA's business operated and the relationship between FXA and FXCM and between FXA and its customers. According to J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, the Disclosure Statement now clarifies that clients that trade in foreign currencies are not protected in the same manner as customers that engage in securities transactions with a stockbroker and are not granted a statutory priority in the event of the liquidation of the foreign exchange dealer. The Disclosure Statement further notes that customer deposits were not required to be, and were not, segregated by FXA. Accordingly, the Debtors contend that the FXA clients merely hold general unsecured claims against the FXA estate. Constructive Trust Action Mr. St. Clair reminds Judge Drain that several parties also objected that: -- there was not disclosure regarding a recent adversary proceeding that was brought on behalf of certain FXA clients alleging that the customers' deposits do not constitute the property of FXA or RCM or their bankruptcy estates; -- FXA and RCM have been unjustly enriched by those customer deposits; and -- the plaintiffs are entitled to the value of the customer deposits. To address that issue, the Plan Proponents have included a new provision that describes the allegations contained in the Constructive Trust Action. The Modified Disclosure Statement also discloses that the Debtors dispute the allegations in the Constructive Trust Action and all other assertions that the FXA customers are anything other than holders of prepetition non- priority general unsecured claims against FXA. The Modified Disclosure Statement further includes: (i) the position of the RCM Trustee that any claim or cause of action asserting that any Assets in Place are not the property of RCM, including any claim or cause of action in the nature of constructive trust, is barred and can no longer be pursued against RCM, except where expressly reserved for in the orders entered in the Assets in Place Adversary Proceeding; and (ii) FXA's position that the constructive trust claim against RCM asserted in the constructive trust action belongs to FXA and not the FXA clients. Other Modifications The Plan Proponents state that the approximately 16 pages of disclosure in the Disclosure Statement dedicated to describing the "Settlements" embodied in the Plan is more than adequate of disclosure related to the proposed waiver of FXA's intercompany claim against RCM under the Plan. Whether it is appropriate for that release to be approved as part of the Plan is a matter that will be decided as part of the confirmation hearing, Mr. St. Clair says. The Plan Proponents added a new section to the Disclosure Statement that specifically addresses the issue of the lack of any disclosure regarding Saeed Abdulrahman Alqahtani's $5,800,000 administrative claim. The Plan Proponents disclose that they estimate that certain FXA customers had postpetition net gains of approximately $10,000,000. With respect to the FXA Japanese clients' objections, the Plan Proponents have materially expanded their discussion regarding the formation of RefcoFX Japan KK, the relationship between FXA, FXCM, Refco Japan, the FXA Japanese clients, and the Hong Kong Shanghai Banking Corp. bank account held by Refco Japan. The Plan Proponents have also provided additional disclosure regarding the pending actions in Japan against Refco Japan, and the turnover action recently commenced by FXA against FXCM, Refco Japan, Hong Kong Shang Hai Banking Corp., and certain FXA Japanese clients. Moreover, the Plan Proponents have supplemented the Disclosure Statement to reflect Russia Growth Fund's concerns. However, the Plan Proponents note that neither the Plan nor the RCM Settlement Agreement contemplate different distribution mechanics or economic terms as a result of RCM being administered in either Chapter 7 or Chapter 11. Mr. St. Clair explains that the Plan simply provides the option for the Debtors and the RCM Trustee to choose an applicable chapter of the Bankruptcy Code if they believe one to be more likely to facilitate distributions. Neither Russia Growth Fund nor any RCM creditor has raised objections as to the disclosures in respect of fundamental distribution or economic terms. As such, he says, it would appear that Russia Growth Fund, regardless of the conversion issue, has sufficient information to assess the Plan and potential corresponding recoveries. With respect to the objections raised by the Ad Hoc Equity Committee of Security Holders, Mr. St. Clair argues that the Debtors' contribution toward a common settlement fund is not co- extensive with "substantive consolidation" of the Debtors' estates. The Plan does not currently contemplate "substantive consolidation," but instead, it is predicated on a "voluntary pooling of assets" of Debtors that remain separate legal entities, he says. Mr. St. Clair further asserts that the Equity Committee understates, and in many cases ignores, the liabilities existing at Refco. "Contrary to the Equity Committee's assertions, it is not the case that Refco Inc. is a debt-free parent that owns all Refco- related claims and is immune to all defenses or counterclaims relating to [that] claim," Mr. St. Clair contends. A summary of the Disclosure Statement Objections and the Plan Proponents' corresponding responses is available at no charge at http://ResearchArchives.com/t/s?1386 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Unit's Case Summary & 53 Largest Unsecured Creditors --------------------------------------------------------------- Lead Debtor: Refco Inc. One World Financial Center 200 Liberty Street, Tower A New York, New York 10281 Bankruptcy Case No.: 05-60006 Debtor-affiliate filing separate chapter 11 petitions on October 16, 2006: Entity Case No. ------ -------- Refco Commodity Management, Inc. 06-12436 Debtor-affiliates that filed separate chapter 11 petitions on June 5, 2006: Entity Case No. ------ -------- Westminster-Refco Management LLC 06-11260 Refco Managed Futures LLC 06-11261 Lind-Waldock Securities LLC 06-11262 Debtor-affiliates that filed separate chapter 11 petitions on Oct. 17, 2005: Entity Case No. ------ -------- Refco Global Finance Ltd. 05-60007 Refco Information Services LLC 05-60008 Bersec International LLC 05-60009 Refco Capital Management LLC 05-60010 Refco Global Capital Management LLC 05-60011 Marshall Metals LLC 05-60012 Refco Financial LLC 05-60013 New Refco Group Ltd., LLC 05-60014 Refco Regulated Companies LLC 05-60015 Refco Finance Inc. 05-60016 Refco Capital Holdings LLC 05-60017 Refco Capital Markets, Ltd. 05-60018 Kroeck & Associates, LLC 05-60019 Refco Administration, LLC 05-60020 Refco Mortgage Securities, LLC 05-60021 Refco Capital LLC 05-60022 Refco F/X Associates LLC 05-60023 Refco Global Futures LLC 05-60024 Summit Management LLC 05-60025 Refco Capital Trading LLC 05-60026 Refco Group Ltd., LLC 05-60027 Refco Global Holdings LLC 05-60028 Refco Fixed Assets Management LLC 05-60029 Type of Business: The Debtors constitute a diversified financial services organization with operations in 14 countries and a global institutional and retail client base. Refco Inc.'s worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London, Paris and Singapore. In addition to its futures brokerage activities, Refco Inc. and its affiliates are major brokers of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Chapter 11 Petition Date: October 17, 2005 Court: Southern District of New York (Manhattan) Judge: Robert D. Drain Debtors' Counsel: J. Gregory Milmoe, Esq. Sally M. Henry, Esq. Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, New York 10036 Tel: (212) 735-3770 Fax: (917) 777-3770 Lead Debtor's Financial Condition as of August 31, 2005: Total Assets: US$16,500,000,000 Total Debts: US$16,800,000,000 Financial condition of debtor-affiliates that filed on June 5, 2006: Entity Total Assets Total Debts ------ ------------ -------------- Westminster-Refco Management LLC US$1,918,030 US$1,032,386,039 Refco Managed Futures LLC US$0 US$1,035,345,960 Lind-Waldock Securities LLC US$0 US$1,032,000,000 Financial condition of Refco Commodity Management, Inc.: Estimated Assets: US$1 Million to US$10 Million Estimated Debts: US$50,000 to US$100,000 A. Refco Commodity Management, Inc.'s 3 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Affiliates and subsidiaries Intercompany Unliquidated of Refco Inc. One World Financial Center 200 Liberty Street - Tower A New York, New York 10281 Attn: Eric Simonsen Gary L. Franzen, as Trustee Litigation Unliquidated of the Gary L. Franzen Declaration of Trust, et al. Wachovia Securities, LLC Trade Debt US$9,000 901 East Byrd Street, WS2055 Richmond, Virginia 23219 Attn: Leah R. Wehinger B. Debtors' Consolidated List of 50 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Bawag International Finance US$451,158,506 BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft Sietzergasse 2-4 A-1010 Vienna, Austria P: +43/1/534 53/3 12 10 F: +43/1/534 53/ 2284 Wells Fargo US$390,000,000 Corporate Trust Services Mac N9303-120 Sixth & Marquette Minneapolis, MN 55497 P: 612-3 16-47727 Attn: Julie J. Becker VR Global Partners, LP US$380,149,056 Avora Business Park 77 Sadovnicheskaya NAB. Building 1 Moscow, Russia 115035 Rogers Raw Materials Fund US$287,436,182 c/o Beeland Management 141 West Jackson Boulevard, Suite 1340 Chicago, IL 60604 P: (312) 264-4375 Bancafe International Bank Ltd. US$176,006,738 Carrera 11 82-76 Segundo 2 Bogota, Colombia P: 636-4349 - and - Bancafe International Bank Ltd. 801 Brickell Avenue Ph1 Miami, FL 33131 P: 305-372-9909 F: 305-372-1797 Markwood Investments US$110,056,725 Via Lovanio #19 00198 Rome, Italy Capital Management Select Fund US$109,009,282 Lynford Manor, Lynford Cay Nassau, Bahamas Leuthold Funds Inc US$107,264,868 Leuthold Industrial Metals, LP 100 North 6th Street Suite 412A Minneapolis, MN 55403 P: 612-332-9141 F: 612-332-0797 Attn: David Cragg Rietumu Banka US$100,860,048 JSC Rietumu Banka Reg. No. 40003074497 VAT No. LV40003074497 54 Brivibas str Riga, LV-1011 LATVIA P: +371-7025555 F: +371-7025588 Cosmorex Ltd. US$91,393,820 CP 8057 28080 Madrid, Spain P: +34-607-745-555 F: +34-667-706-622 BCO Hipotecario Inv. Turistic US$85,807,030 (Fidelicomiso Federal Forex Invest) Av Venezuela Torre Cremerca, Piso 2 Ofici B2 El Rosal Caracas, VENEZUELA VR Argentina Recovery Fund US$77,710,311 Avrora Business Park 77 Sadovnicheskayanab BLDG 1 Moscow, 115035 Russia Rogers International Raw Materials US$75,213,814 c/o Beeland Management 141 West Jackson Boulevard, Suite 1340 Chicago IL 60604 P: (312) 264-4375 Creative Finance Limited US$65,111,071 Marcy Building, Purcell Estate P.O. Box 2416 Road Town, British Virgin Islands Cargill US$67,000,000 PO Box 9300 Minneapolis, MN 55440-9300 P: (952) 742-7575 F: (952) 742-7393 JWH Global Trust US$50,576,912 c/o Refco Commodity Management Inc. One World Financial Center 200 West Liberty St., 22nd Floor New York, NY 10281 RB Securities Limited US$50,661,064 54 Brivibas Street LV-1011 Riga, Lativa P: + 371 702-52-84 F: + 371 702-52-26 Premier Trust Custody US$49,365,415 Abraham De Veerstraat 7-A Curacao, Netherlands Antilles London & Amsterdam Trust Company US$47,560,980 P.O. Box 10459 APO 3rd Floor Century Yard Cricket Square, Elgin Ave. Grand Cayman, Cayman Island Stilton International Holdings US$46,820,415 Trident Chambers, Wickhams Cay P.O. Box 146 Road Town, British Virgin Islands Refco Advantage Multi-Manager Fund Futures Series US$41,713,723 c/o Refco Alternative Investments Group One World Financial Center 200 West Liberty St., 22nd Floor New York, NY 10281 Banesco NY Banesco Banco Universal C.A. US$39,596,609 Av Urdaneta, Esquina El Chorre, Torre Untbanca Caracas Venezuela Josefina Franco Sillier US$32,862,419 Carretera Mexico-Toluca No. 4000 Col. Cuajimalpa D.R. 0500 Mexico Rovida US$32,831,461 London & Amsterdam Trust Company P.O. Box 10459 APO 3rd Floor Century Yard, Cricket Sq. Caja S.A. US$30,950,115 Sarmiento 299 1 Subsuelo (1353) Buenos Aires, Argentina P: (54 11) 4317-8900 F: (54 11) 4317-8909 Global Management Worldwide US$28,976,612 Trident Corp. Service Floor 1 Kings Court Bay St. PO Box 3944 Nassau, Bahamas Abadi & Co. Securities US$28,046,904 375 Park Avenue, Suite 3301 New York, NY 10152 P: (212) 319 -4135 Refco Winton Diversified Futures Fund US$27,226,697 c/o Refco Global Finance One World Financial Center 200 West Liberty Street, 22nd Floor New York, NY 10281 Pioneer Futures, Inc. US$25,932,000 One North End Ave., Suite 1251 New York, NY 10282 Daichi Commodities Co., Ltd. US$24,894,833 10-10 Shinsen Cho, Shibuya-Ku Tokyo, I5O-0045 JAPAN GS Jenkins Portfolio LLC. US$24,631,959 c/o Refco Capital Markets One World Financial Center 200 West Liberty Street, 22nd Floor New York, NY 10281 Winchester Preservation US$23,349,765 c/o Joseph D, Freney Christiana Bank & Trust Co. 3801 Kennett Pike, Suite 200 Greenville, DE 19807 Banco Agri Banco Agricola (PANAMA) S.A. US$22,314,386 Edificio Global Bank #17, Local F, Calle 50 PANAMA, PA - and - Banco Agricola, S.A. 1RA. Cakke Pte. Y 67 AV. Norte Final Blvd Constitucion #100 San Salvador, ES Peak Partners Offshore Master Fund Limited US$22,205,344 P.O. Box 2199 GT Grand Pavilion Commercial Center 802 West Bay Road Grand Cayman, Cayman Islands Arbat Equity Arbitrage Fund US$19,106,989 Trident Corporate Services 1st Floor Kings Court Bay Street P.O. Box N3944 Nassau, Bahamas Renaissance Securities (Cyprus) Ltd. US$17,820,709 2-4 Arch Makarios 111 Avenue Capital Center, 9th Floor 1505 Nicosia Cyprus AQR Absolute Return US$17,482,100 c/o Caledonian Bank & Trust Ltd. P.O. Box 1043 GT Caledonian House Grand Cayman, Cayman Islands Geshoa Fund US$17,319,494 Corporate Center West Bay Road Po Box 31106 Smb Grand Cayman RK Consulting US$14,074,345 7, Kountouriotou Street 14563 Kifissia Greece VR Capital Group Ltd. US$13,690,549 Avrora Business Park Calendonian House Mary Street NAB 77 Building 1 MOSCOW, RUSSIA 115035 P: +358 600 41 902 GTC Bank, INC. US$12,971,439 Calle 55 Este Torre World Trade Center Piso 7 PANAMA GUATEMALA P: (507) 265-7371 F: (507) 265-7396 Inversiones Concambi US$12,799,137 c/o AEROCAV 1029 P.O. BOX 02-5304 MIAMI, PL 33102 Miura Financial Services US$12,150,213 AV. Francisco De Miranda TORRE LA PRIMERA PISO 3 CARACAS VENEZUELA NKB Investments Ltd. US$11,699,430 199 Arch Makarios Ave 196 Makarios III Avenue Ariel Corner 3rd Floor Office 301 3030 Limassol CYPRUS Tokyo Forex Financial Inc US$11,689,354 Shinjyuku Oak Tower, 35th Floor 6-8-1 Nishishinjyuku Shinjyuku-Ku, Tokyo JAPAN Birmingham Merchant S.A. US$11,215,413 AV. ARGENTINA 4793 PISO 3 CALLAO PERU BAC International US$10,906,506 Calle 43 Qnquillo De Laguar PANAMA P: (507) 265-8289 F: 507-205-4031 Total Bank US$10,657,732 Calle Guaicaipuro Entre Av.Principalde Ias Mercedes Torre Alianza Piso 9 EL ROSAL, CAACAS, VENEZUELA P: (0212) 264.72.54/49.42 F: (0212) 266.58.12 Reserve Invest (Cypress) Limited US$10,499,733 Maximos Plaza 3301 Block 3 3035 LIMASSOL CYPRUS Refco Commodity Futures Fund US$10,166,045 c/o Refco Alternative Investments Group One World Financial Center 200 Liberty Street, 22nd Floor New York, New York 10281 P: 877 538 8820 F: 877 229 0005 REGALI RICCHI: Names Liquidators from Harrisons ----------------------------------------------- John C. Sallabank and Paul R. Boyle of Harrisons were appointed Joint Liquidators of Regali Ricchi Limited on Oct. 3 for the creditors' voluntary winding-up proceeding. Headquartered in Chesterfield, United Kingdom, Regali Ricchi Limited sells equestrian clothing. REKRI8 LIMITED: Bank of Scotland Appoints Joint Receivers --------------------------------------------------------- Bank of Scotland appointed Christopher Ratten and Thomas Campbell Maclennan of Tenon Recovery joint administrative receiver of Rekri8 Ltd. (Company Number 04054472) on Sept. 28. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Headquartered in Stockport, United Kingdom, Rekri8 Ltd. -- http://www.rekri8.co.uk/-- manufactures domestic gas products. ROOTS ASSOCIATES: Creditors' Meeting Slated for October 20 ---------------------------------------------------------- Creditors of Roots Associates Limited (Company Number 04705926) will meet at 10:30 a.m. on Oct. 20 at: The Campanile Hotel 20 Beverley Road Hull HU2 9AN 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 Oct. 19 at: D. A. Willis Administrator Jacksons Jolliffe Cork Lowgate House Lowgate Hull HU1 1EL United Kingdom Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- was established in 1998. It has offices in Doncaster, Harrogate, Hull, Middlesbrough, Wakefield and York. The firm is engaged exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. SANDERSON PRECISION: Brings In Paul Webb to Administer Assets ------------------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was appointed administrator of Sanderson Precision Products Ltd. (Company Number 04775566) on Sept. 19. The administrator can be reached at: Mayfields Insolvency Practitioners Church Steps House Queensway Halesowen West Midlands B63 4AB United Kingdom Tel: 0121 550 0011 Headquartered in Sheffield, United Kingdom, Sanderson Precision Products Ltd. manufactures basic iron and steel. SANDUSKY WALMSLEY: Creditors' Meeting Slated for October 20 ----------------------------------------------------------- Creditors of Sandusky Walmsley Limited (Company Number 03927308) will meet at 11:00 a.m. on Oct. 20 at: Jury's Inn 56 Great Bridgewater Street Manchester M1 5LE 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 Oct. 19 at: M. Horrocks and R. S. Cash Joint Administrators PricewaterhouseCoopers LLP Benson House 33 Wellington Street Leeds LS1 4JP United Kingdom Tel: [44] (113) 289 4000 Fax: [44] (113) 289 4460 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. SCRIBES LIMITED: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of Scribes Limited confirmed Oct. 4 the appointment of Roderick Graham Butcher of Butcher Woods as the company's Liquidator. Headquartered in Rugeley, United Kingdom, Scribes Limited -- http://www.scribes.ltd.uk/-- provides calligraphy, illustration, bookbinding and digital archiving services. The company's products include books of remembrance and condolence, special presentations, scrolls for Freedom ceremonies, indoor and outdoor plaques, wedding stationery, registers, and visitor books. Scribes also supplies display cabinets and chapel furniture. SIRVA WORLDWIDE: Operating Pressures Spur Moody's to Cut Ratings ---------------------------------------------------------------- Moody's Investors Service lowered the Corporate Family and Probability of Default ratings of SIRVA Worldwide Inc. to B3 from B2. Moody's affirmed the B2 senior secured and LGD-3 ratings, and reduced the Expected Loss Given Default Rate to 38% from 46%. Moody's will withdraw all SWI ratings due to Moody's belief that it lacks adequate financial information to maintain the ratings. SIRVA, Inc., SWI's holding company parent, has yet to file a Form 10-K for its fiscal year ended Dec. 31, 2005 nor Forms 10-Q for any quarter beginning after Dec. 31, 2004. In addition, on Aug. 11, the company reiterated that it had concluded that its annual financial statements filed for the years ended Dec. 31, 2002 through 2004 and for all quarterly periods beginning after Dec. 31, 2001 should not be relied upon because of accounting errors in these financial statements. SWI's bank credit agreement requires SWI to provide to lenders the audited annual and unaudited quarterly financial statements for each of SIRVA, Inc. and of SWI. The Credit Agreement has been amended to extend the filing requirement for the audited annual financial statements for 2005 to Jan. 31, 2007. The downgrades reflect Moody's belief that operating margins will be pressured over the intermediate term due to: -- lower demand for SWI's moving services from a softening U.S. housing market, -- pricing pressure because of SWI's and its competitor's focus on maintaining respective market share, and -- pressure from corporate customers focused on cost reductions. Moody's notes that SIRVA, Inc. has filed a Form 8-K dated August 15, 2006, with preliminary, unaudited financial statements for 2005 for both of SWI and SIRVA, Inc. The SWI financials reflect weak credit metrics, including EBIT margin of 0.4%, EBIT / Interest of 0.3x and Debt / EBITDA of 8.4x, and meaningfully negative free cash flow. Moody's anticipates some improvement in EBITDA for 2006 due mainly to the ongoing rationalization of SWI's global cost structure and lower non- recurring expenses; however, Moody's believes the resultant metrics will remain relatively weak. Financial flexibility is also limited in Moody's view. Negative free cash flow is expected although breakeven free cash flow is possible over the intermediate term if demand supports modest growth in both net revenue and relocation initiations consistent with the levels that SIRVA, Inc. discussed in its conference call of Aug. 16. In addition to the weak cash flow, SWI required an eighth amendment to the Credit Agreement, to allow it more time to comply with the requirements to provide quarterly and audited annual financial statements. Moody's believes the possibility exists that SWI will not meet all of the filing due dates required by the Eighth Amendment, and SIRVA may need additional time to provide the required delinquent financial statements as well as to return to timely reporting for current and future periods. Recently, SIRVA, Inc. did raise US$75 million of junior capital and used the proceeds to reduce the term loan and some of the outstanding revolver balance. However, the commitment level of the revolver was not reduced and remains at US$175 million with over half of the commitment used. The lowered corporate family rating reflects both a higher overall probability of default and the expected degree of loss if a default were to occur. The notching up of the instrument rating and the lower LGD Rate (improved expected recovery) on the secured credit facility reflect the benefit of the new US$75 million of convertible subordinated notes. This junior capital increases the amount of the first-loss absorbing junior position in the family debt structure. Sirva Worldwide, Inc. Downgrades: * Corporate Family , to B3 from B2 * Probability of Default, to B3 from B2 Upgrades: * Loss Given Default Rate, Senior Secured Bank Credit Facility, to 38 - LGD 3 from 46 - LGD 3 Ratings to be withdrawn: * Corporate Family, of B3 * Probability of Default, of B3 * Senior Secured, of B2 * Loss Given Default Rate, Senior Secured Bank Credit Facility, of 38 - LGD 3 SIRVA Worldwide Inc., headquartered in Westmont, Illinois, and a wholly owned operating subsidiary of SIRVA, Inc. is a leader in providing relocation solutions and moving services to a diverse global customer base. SOUTHERN COUNTY: E. J. Stonham Leads Liquidation Procedure ---------------------------------------------------------- E. J. Stonham of Stonham.Co was appointed Liquidator of Southern County Chillers Limited on Oct. 3 for the creditors' voluntary winding-up proceeding. Headquartered in Wokingham, United Kingdom, Southern County Chillers Limited engages in sales, service and maintenance on all refrigeration and air-conditioning products. SOUTHERN DRILLING: Appoints Fisher Partners as Administrators ------------------------------------------------------------- Stephen M. Katz and Brian Johnson of Fisher Partners were appointed joint administrators of Southern Drilling Services (and General Engineers) Ltd. (Company Number 02644888) on Sept. 29. The administrators can be reached at: Fisher Partners Acre House 11/15 William Road London NW1 3ER United Kingdom Tel: 020 7388 7000 Fax: 020 7380 4900 E-mail: skatz@hwfisher.co.uk Headquartered in Arundel, United Kingdom, Southern Drilling Services (and General Engineers) Ltd. manufactures drilling rigs. The company also supplies and repairs parts for drilling rigs. SPLASH OF PAINT: Brings In Bishop Fleming to Administer Assets -------------------------------------------------------------- Samuel Jonathan Talby and Jeremiah Anthony O'Sullivan of Bishop Fleming were appointed joint administrators of Splash of Paint Ltd. (Company Number 02494776) on Oct. 4. With offices in Bristol, Exeter, London, Plymouth, Torbay and Truro, United Kingdom, Bishop Fleming -- http://www.bishopfleming.co.uk/-- is one of the biggest firms of Chartered Accountants for South West U.K. businesses that demand expert accounting and financial accounts management. Splash of Paint Ltd. can be reached at: Larch House Sulhamstead Reading Berkshire RG7 4BB United Kingdom Tel: 0118 932 3566 Fax: 0118 932 3252 SPORTINGBET PLC: Sells U.S. Business to Jazette Ent. for US$1 ------------------------------------------------------------- Sportingbet PLC has sold its U.S. business to Jazette Enterprises Limited for US$1 on Oct. 13, hours before U.S. President George W. Bush signed into law an act banning online gaming across the country. Sportingbet received the cash consideration for the shares and related assets of the company's US operations, and has discharged excess liabilities amounting to approximately US$13.2 million. Had the business been closed, the Board estimated that the cost of severance and closure would have amounted to approximately US$14.0 million -- a total saving of about US$27.2 million. Following the disposal, neither Sportingbet, its Directors nor related parties will have any interest, commercial or otherwise, in JEL or the US operations. The US Operations employed over 500 people and the Board understands that JEL intends to preserve the operational structure to all material extent. Under the terms of the disposal, Sportingbet will retain the URLs and intellectual property of wallstreet.com, aces.com and sportingbetUSA.com though these will not be used for any US gaming purpose. In addition, JEL has agreed, for a period of two years, not to take bets from non-US residents and for a period of three years, not to take bets from customers outside the Americas region. Further, Sportingbet has retained the details of all non-US resident customers currently registered with the US operations. Sportingbet will attempt to migrate those customers to its ongoing European business. "We are saddened to have to dispose of such a fantastic business as a result of political actions in the US Congress," Andrew McIver, Chief Executive designate, said. "The sale however, prevents significant closure costs which would have been both expensive and time consuming. It also preserves the employment of those of our colleagues who have worked so hard to build the US operations into the highly profitable business it is today. Sportingbet will now focus on developing its business in other key markets of the world." According to Simon Bowers of The Guardian, Sportingbet is expected to make more than GBP300 million in losses in the current financial year after it was forced to write off its U.S. businesses. Sportingbet's Paradise Poker business closed to U.S. customers Friday, wiping out about two-thirds of divisional revenues at a stroke, Mr. Bowers relates. The company is scheduled to release its results for the twelve months ended July 31, 2006, at 9:30 a.m. London time today. About the Company Headquartered in London, England, Sportingbet PLC is an e-gaming operator traded on the London Stock Exchange's Alternative Investment Market (symbol: SBT.L). As of late September 2006, Sportingbet had a market capitalization in excess of GBP750 million. The company has offices in Ireland, Costa Rica, and Australia. On Sept. 7, SportingBet chairman Peter Dicks was detained in New York City on a Louisiana warrant while traveling in the United States on business unrelated to online gaming. The arrest comes two months after the arrest of David Carruthers, CEO of rival betting company, BetOnSports.com. On Sept. 29, Mr. Dicks was released from US custody returned to the UK. STEWART COOK: Creditors' Meeting Slated for October 23 ------------------------------------------------------ Creditors of Stewart Cook Limited (Company Number 03520045) will meet at 10:30 a.m. on Oct. 23 at: BDO Stoy Hayward LLP Arcadia House Maritime Walk Ocean Village Southampton SO14 3TL 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 Oct. 20 at: Graham Hunter Martin and Laurie Katherine Manson Joint Administrators BDO Stoy Hayward LLP Arcadia House Maritime Walk Ocean Village Southampton SO14 3TL United Kingdom 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. SULLIVAN CONSTRUCTION: Names Timothy Calverley Liquidator --------------------------------------------------------- Timothy Calverley of Haines Watts was appointed Liquidator of Sullivan Construction Limited on Oct. 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Sullivan Construction Limited 19 Philip Avenue Cleethorpes South Humberside DN359DL United Kingdom Tel: 01472 692 211 TANKERTON BATHROOM: Hires Liquidator from Fisher Partners --------------------------------------------------------- Stephen M. Katz of Fisher Partners was appointed Liquidator of Tankerton Bathroom & Fireplace Specialists Limited on Oct. 3 for the creditors' voluntary winding-up procedure. The company can be reached at: Tankerton Bathroom & Fireplace Specialists Limited 107 Tankerton Road Whitstable Kent CT5 2AJ United Kingdom Tel: 01227 266610 Fax: 01227 266618 Web: http://www.specialistfireplaces.co.uk/ TIPTOP RUNNERS: Creditors' Claims Due Nov. 17 --------------------------------------------- Creditors of Tiptop Runners Ltd. have until Nov. 17 to send in their names, addresses and the particulars of their debts and claims to appointed Liquidator M. Arkin of Arkin & Co. at: Maple House High Street Potters Bar Hertfordshire EN6 5BS United Kingdom Headquartered in London, United Kingdom, Tiptop Runners Ltd. -- http://www.tiptopmedia.co.uk/-- offers practical solution to staff shortages in and about the office with the supply of freelance personnel. The company also offers complete solutions to storage needs in the workplace. TLS EUROPE: Creditors' Meeting Slated for October 24 ---------------------------------------------------- Creditors of TLS Europe Limited (Company Number 05115576) will meet at 10:00 a.m. on Oct. 24 at: Berg Kaprow Lewis LLP 35 Ballards Lane London N3 1XW 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 Oct. 23 at: S. T. Bennett Joint Administrator Berg Kaprow Lewis LLP 35 Ballards Lane London N3 1XW United Kingdom Tel: 020 8922 9222 Fax: 020 8922 9223 Enquiry Line: 020 8922 9121 VENTURE DISTRIBUTION: Taps Administrators from Fanshawe Lofts ------------------------------------------------------------- Antony Robert Fanshawe and Stephen John Adshead of Fanshawe Lofts were appointed joint administrators of Venture Distribution Ltd. (Company Number 04245120) on Sept. 28. The administrators can be reached at: Fanshawe Lofts 41 Castle Way Southampton Hampshire SO14 2BW United Kingdom Tel: 023 8023 3522 Fax: 023 8023 3504 E-mail: sa@fanshawe-lofts.co.uk arf@fanshawe-lofts.co.uk Venture Distribution Ltd. can be reached at: Bilton Way Lutterworth Leicestershire LE17 4JA United Kingdom Tel: 01455 555 400 Fax: 01455 555 401 VIA GELLIA: 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 Via Gellia Transport Ltd. (Company Number 2410852) on Sept. 25. 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 Via Gellia Transport Ltd. can be reached at: Sandy Hill Middleton Matlock Derbyshire DE4 4LR United Kingdom Fax: 01629 825 662 WARDELL HURST: Nominates Liquidators from Abbott Fielding --------------------------------------------------------- Nedim Ailyan and Andrew Tate of Abbott Fielding were nominated Joint Liquidators of Wardell Hurst Limited (fka Doriangrace Limited) on Oct. 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Wardell Hurst Limited Unit 4 Gaugemaster Way Ford Arundel West Sussex BN180RX United Kingdom Tel: 01903 882 303 Fax: 01903 883 871 WESTMINSTER HOSPITALITY: Names Zafar Igbal as Administrator ----------------------------------------------------------- Zafar Iqbal of Cooper Young was named administrator of Westminster Hospitality & Events Ltd. (Company Number 04566746) on Oct. 3. The administrator can be reached at: Cooper Young Kirkdale House Kirkdale Road Leytonstone London E11 1HP United Kingdom Tel: 020 8539 0700 Headquartered in Lambeth, United Kingdom, Westminster Hospitality & Events Ltd. retails event tickets. ********* 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, Joy Agravante, and Zora Jayda Zerrudo Sala, 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 * * *