/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061019.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 Thursday, October 19, 2006, Vol. 7, No. 208 Headlines A U S T R I A BEHRENS EUROLIFT: Creditors' Meeting Slated for Nov. 15 MC-CASH LLC: Claims Registration Period Ends October 23 MOEWE4MOEBELWERKSTATT LLC: St. Poelten Court Shuts Down Business O-KONSULT LLC: Wels Court Orders Business Shutdown B E L G I U M GOODYEAR TIRE: Labor Strike Cues S&P to Put Rating on Watch Neg. RED PRAIRIE: Moody's Assigns Loss-Given-Default Rating SERENA SOFTWARE: Moody's Assigns Loss-Given-Default Rating VWR INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings C Y P R U S TMK OAO: TMK Steel Limited Gains Full Ownership C Z E C H R E P U B L I C HEXION SPECIALTY: Moody's Rates New Second Lien Notes at B3 LG.PHILIPS DISPLAYS: Posts CZK8.4-Billion Losses in 2005 D E N M A R K HARLAN SPRAGUE: Moody's Assigns Loss-Given-Default Ratings IMAX CORP: Moody's Assigns LGD4 Rating to 9-5/8% Senior Notes F R A N C E ALCATEL SA: Inks LatAm Network Solutions Deal with Telefonica COREL CORP: Moody's Assigns Loss-Given-Default Rating EUROTUNNEL GROUP: Sets Oct. 31 as Target Date for Agreement EUROTUNNEL GROUP: Third Quarter Total Revenue Up to GBP149.5 Mln NUANCE COMMS: Moody's Assigns Loss-Given-Default Rating PROTECTION ONE: Moody's Assigns Loss-Given-Default Ratings RHODIA SA: BNP Paribas Buys 8.17% Stake from Sanofi for EUR183MM RHODIA S.A.: Majority of Noteholders Tender Notes SCIENTIFIC GAMES: Moody's Assigns Loss-Given-Default Ratings SERVICE CORPORATION: Moody's Assigns Loss-Given-Default Ratings WEIGHT WATCHERS: Moody's Assigns Loss-Given-Default Ratings G E R M A N Y ALLEGHENY TECHNOLOGIES: Moody's Gives Loss-Given-Default Rating ANCORA VERSICHERUNGS: Claims Registration Ends October 27 B+B TRANSPORT: Claims Registration Ends October 25 CHANNEL WELL: Claims Registration Ends October 25 CONVERIUM RUECKVERSICHERUNG: Moody's Rates US$200M Notes at Ba1 GOEBENSTRASSE 3: Creditors' Meeting Slated for October 26 GOTTSCHALKSTRASSE WOHNEN: Creditors' Meeting Slated for Oct. 26 HC SUHL 99: Claims Registration Ends October 30 ICP GESELLSCHAFT: Claims Registration Ends October 27 J. STEHLE & SOEHNE: Claims Registration Ends October 27 MARKT KONZEPT: Claims Registration Ends October 30 NOVELIS INC: Moody's Assigns Loss-Given-Default Ratings RENE SCHULZ: Claims Registration Ends October 30 RICHARD PRIEN: Claims Registration Ends October 23 SERVICE CORPORATION: Moody's Assigns Loss-Given-Default Ratings G R E E C E WEIGHT WATCHERS: Moody's Assigns Loss-Given-Default Ratings I C E L A N D CENTURY ALUMINUM: Moody's Assigns Loss-Given-Default Ratings I R E L A N D CENTRAL PARKING: Moody's Assigns Loss-Given-Default Ratings SS&C TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating I T A L Y DA VINCI SYNTHETIC: Fitch Gives BB+ Rating on EUR15.6-Mln Notes EFIBANCA: Merger Prompts Moody's to Review Ratings & May Upgrade HILTON HOTELS: Moody's Assigns Loss-Given-Default Ratings POPOLARE ITALIANA: Moody's Reviews D Financial Strength Rating K A Z A K H S T A N ARDAGER-RODNIK: Akmola Court Opens Bankruptcy Proceedings ECOLINE ENTERPRISES: Creditors Must File Claims by Nov. 10 ICEBERG: Proof of Claim Deadline Slated for Nov. 8 IVIKON KURYLYS: Creditors Must File Claims by Nov. 10 MADINA: Proof of Claim Deadline Slated for Nov. 8 MUNAISHY-SERVICE: Claims Registration Ends Nov. 10 POKROVOSKOYE: Kostanai Court Begins Bankruptcy Proceedings SHIPA SERVICE: Mangistau Court Starts Bankruptcy Procedure TECHNICOM LTD: Creditors' Claims Due Nov. 10 K Y R G Y Z S T A N MURAT AGROTRADING: Proof of Claim Deadline Slated for Nov. 24 L A T V I A BALTIC BANK: Moody's May Upgrade Ba2 Covered Bond Rating N E T H E R L A N D S BASELL AF: Fitch Rates Senior Secured Facilities at BB+ CORUS GROUP: Confirms Tata Steel's GBP4.1-Bln Takeover Proposal LAURUS NV: Recommends Jan H. Ozinga as Supervisory Director LG.PHILIPS DISPLAYS: Czech Unit Posts CZK8.4-Bln Losses in 2005 SCIENTIFIC GAMES: Moody's Assigns Loss-Given-Default Ratings SS&C TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating SYNIVERSE TECHNOLOGIES: Moody's Gives Loss-Given-Default Ratings N O R W A Y AKER KVAERNER: Wins NOK100-Million Mooring Systems Contracts R U S S I A ALUMINIUM BUILDING: Samara Court Starts Bankruptcy Supervision ANNINSKIY: Voronezh Court Names S. Khomin as Insolvency Manager BUILDER CJSC: Court Names I. Borzov as Insolvency Manager EAR CJSC: Altay Bankruptcy Hearing Slated for Feb. 19 INVEST-TRANS-SERVICE: Court Names O. Feldman to Manage Assets LUKOIL OAO: Environment Ministry Probes Deeper into Violations LYUBIMSKOYE FUEL: Yaroslavl Bankruptcy Hearing Slated for Nov. 1 METAL-INVEST-SERVICE: Court Names V. Gusev as Insolvency Manager MILLING MACHINE: Court Names N. Aksenov as Insolvency Manager NORWOOD ENTERPRISE: Asset Sale Slated for October 30 NOVGOROD-AVIA: Court Names A. Tsybin as Insolvency Manager OGK-5 JSC: Moody's Assigns Ba3 Corporate Family Rating RUSSIAN CAR: Moody's Assigns (P)Ba2 Rating to Class C Notes SERGIEVY GORKI: Vladimir Bankruptcy Hearing Slated for Dec. 19 SIBROSS-INVEST: Court Names L. Prikhodko as Insolvency Manager SUDISLAVSKIY DIARY: Court Starts Bankruptcy Supervision TMK OAO: TMK Steel Limited Gains Full Ownership USEC INC: Moody's Assigns Loss-Given-Default Rating VYATSKAYA: Kirov Court Names K. Volkov as Insolvency Manager YUGRA-TRUST: Court Names V. Belonogov as Insolvency Manager YUKOS OIL: Deutsche Bank Eyes Controlling Stake, Chairman Says S E R B I A & M O N T E N E G R O TUBE CITY: Moody's Assigns Loss-Given-Default Ratings U.S. STEEL: Moody's Assigns Loss-Given-Default Rating S L O V A K R E P U B L I C TUBE CITY: Moody's Assigns Loss-Given-Default Ratings U.S. STEEL: Moody's Assigns Loss-Given-Default Rating S P A I N ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings HARLAN SPRAGUE: Moody's Assigns Loss-Given-Default Ratings TELCORDIA TECHNOLOGIES: Moody's Gives Loss-Given-Default Ratings S W E D E N EPICOR SOFTWARE: Moody's Assigns Loss-Given-Default Rating GOODYEAR TIRE: Labor Strike Cues S&P to Put Rating on Watch Neg. S W I T Z E R L A N D CONVERIUM AG: Moody's Reviews Baa1 Financial Strength Rating CONVERIUM HOLDING: Inks US$295-Mln Sale Agreement With NICO CONVERIUM HOLDING: Moody's May Upgrade B2 Rating on Sale Deal HEXION SPECIALTY: Moody's Rates New Second Lien Notes at B3 TOWN SPORTS: Moody's Assigns Loss-Given-Default Ratings T U R K E Y AKBANK T.A.S.: Citigroup to Buy 20% Stake for US$3.1 Billion IMAX CORP: Moody's Assigns LGD4 Rating to 9-5/8% Senior Notes U K R A I N E ALFA TELEKOM: Court Names Svitlana Bikova as Insolvency Manager MAYORSKIJ REINFORCED: Court Names I. Strashnov as Liquidator PETROVSKE REPAIR-TRANSPORT: A. Vinnik to Liquidate Assets SOBORNIJ: Herson Court Names Mr. Kosovskij as Liquidator VITREN: Donetsk Court Starts Bankruptcy Supervision Procedure VSEUKRAINSKY AKTSIONERNY: Fitch Assigns B- Issuer Default Rating YUZHSPECEXPORT LLC: Court Names V. Kosovskij V. as Liquidator ZHVANETS REPAIR-TRANSPORT: Sergij Shishkin to Manage Assets U N I T E D K I N G D O M ACCESS DEVICES: For Sale as a Going Concern ALLEGHENY TECHNOLOGIES: Moody's Gives Loss-Given-Default Rating AMARO PROFESSIONAL: Brings In KPMG to Administer Assets ASCOT BLACK: Moody's Rates Class E Credit Default Swap at (P)Ba2 ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings BLIGHTS BUILDERS: Brings In Administrators from Bishop Fleming BRITISH AIRWAYS: Launches Competition to Address Pension Deficit CAIRNSERVE GROUP: BDO Stoy Hayward Selling Fast Food Operator CHALLENGE BUSINESS: Grant Thornton Selling Yachting Firm CORUS GROUP: Confirms Tata Steel's GBP4.1-Bln Takeover Proposal ELONEX LIMITED: Taps Vantis to Administer Assets EURACH PARC: Brings In KPMG as Joint Administrators EUROSAIL 2006-2: Fitch Gives B Rating on GBP1.538 Mln Notes EUROTUNNEL GROUP: Sets Oct. 31 as Target Date for Agreement EUROTUNNEL GROUP: Third Quarter Total Revenue Up to GBP149.5 Mln EXMOOR TEDDY: Brings In Laurence Russell as Administrator FORD MOTOR: Anthony Bamford Withdraws Plans to Buy Jaguar GLASS HOUSES: Names William Antony Batty as Administrator HILTON HOTELS: Moody's Assigns Loss-Given-Default Ratings HIT ENTERTAINMENT: Moody's Affirms Low-B Ratings on Amendments INSTRUMENT TECHNOLOGY: Vacuum Hardware Manufacturer Up for Sale ISLE OF CAPRI: Moody's Assigns Loss-Given-Default Ratings LAMDA POLYTECH: Appoints Martin Dominic Pickard as Administrator MAINE OFFICE: Appoints Baker Tilly as Joint Administrators MIDLAND TOYS: PricewaterhouseCoopers Selling Toy Retailer NOVELIS INC: Moody's Assigns Loss-Given-Default Ratings OCEAN GOLD: Fish Products Supplier up for Sale PPC SUPPLIES: Appoints Administrators from RSM Robson Rhodes PROFILE WRAPPERS: Taps Joint Administrators from KPMG SANA FOR LIFE: Brings In Begbies Traynor to Administer Assets SEA CONTAINERS: Gets Authority to Employ BMC as Claims Agent SECURE COMPUTING: Moody's Assigns Loss-Given-Default Rating SFX ENTERTAINMENT: Moody's Assigns Loss-Given-Default Ratings VECTA SOFTWARE: Appoints KPMG to Administer Assets SKYEPHARMA PLC: Posts GBP26.4 Mln Net Loss in 2nd Quarter 2006 WORLD GAMING: Creditors Appoint UHY Hacker as Administrators YMD REALISATIONS: Creditors' Meeting Slated for October 26 * Moody's Sees Modest Credit Quality Improvement in 3rd Quarter * Fitch Identifies Levels of Risk on European Cable Market * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= BEHRENS EUROLIFT: Creditors' Meeting Slated for Nov. 15 ------------------------------------------------------- Creditors owed money by LLC behrens eurolift (FN 113961s) are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 15 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Ried im Innkreis Halll 101 1st Floor Ried im Innkreis, Austria Headquartered in Innkreis, Austria, the Debtor declared bankruptcy on Sept. 7 (Bankr. Case No. 17 S 31/06z). Robert Mayrhofer serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Robert Mayrhofer Kapuzinerberg 2 4910 Ried im Innkreis, Austria Tel: 07752 / 82661 Fax: 07752 / 80370 E-mail: dr.mayrhofer-dr.koepplinger@utanet.at MC-CASH LLC: Claims Registration Period Ends October 23 ------------------------------------------------------- Creditors owed money by LLC Mc-Cash (FN 214523a) have until Oct. 23 to file written proofs of claims to court-appointed property manager Eva Riess at: Dr. Eva Riess c/o Dr. Leopold Riess Zeltgasse 3/13 1080 Vienna, Austria Tel: 402 57 01-0 Fax: 402 57 01-21 E-mail: law@riess.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Nov. 6 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 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 7 (Bankr. Case No. 3 S 128/06b). MOEWE4MOEBELWERKSTATT LLC: St. Poelten Court Shuts Down Business ---------------------------------------------------------------- The Land Court of St. Poelten entered an order Sept. 6 shutting down the business of LLC moewe4moebelwerkstatt (FN 218400b). Court-appointed property manager Franz Hofbauer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Franz Hofbauer Main Place 6 3370 Ybbs an der Donau, Austria Tel: 07412/52731 Fax: 07412/52731 E-mail: dr.hofbauer@wibs.at Headquartered in Persenbeug, Austria, the Debtor declared bankruptcy on Aug. 29 (Bankr. Case No. 14 S 136/06z). O-KONSULT LLC: Wels Court Orders Business Shutdown -------------------------------------------------- The Land Court of Wels entered an order on Sept. 6 shutting down the business of LLC O-Konsult (FN 219953k). Court-appointed property manager Clemens Krabatsch recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Clemens Krabatsch Hafergasse 7 4600 Wels, Austria Tel: 07242/35264 Fax: 07242/35264-14 E-mail: kanzlei.krabatsch@merlin.at Headquartered in Wels, Austria, the Debtor declared bankruptcy on Aug. 30 (Bankr. Case No. 20 S 105/06a). ============= B E L G I U M ============= GOODYEAR TIRE: Labor Strike Cues S&P to Put Rating on Watch Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations. Goodyear has total debt (including the present value of operating leases and underfunded employee benefit liabilities) of about US$7 billion. About 15,000 employees at 14 plants in the U.S. and Canada went on strike on Oct. 5. The United Steel Workers (USW) represents the employees. Goodyear's contract with the USW expired on July 22 although negotiations for a new contract continued until early October. The company's main priorities for a new labor contract are to lower legacy costs, reduce its high cost footprint, and improve productivity, while the union is focused on preserving job security protections and employee benefits. Since the strike began, Goodyear has borrowed almost US$1 billion under a revolving credit facility to enhance liquidity should the strike persist. The company had about US$1.3 billion in cash before the start of the strike. Goodyear's liquidity should be more than adequate to allow the company to comfortably meet its cash requirements for at least the next several months. But the business and financial costs to the company will rise over time. Goodyear currently is able to meet most customer requirements through existing inventory, but as inventory is depleted, the company would experience shortages that could damage customer relationships. "Ultimately, we expect the two parties to reach an agreement that should help Goodyear to lower its burdensome cost position in North America. The ratings could be lowered, however, if it appears that the strike is likely to strain the company's credit profile for the near to medium term," said Standard & Poor's credit analyst Martin King. RED PRAIRIE: 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 U.S. Technology Software sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Red Prairie Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$20 million Senior Secured Revolving Credit Facility due 5 years B2 B1 LGD3 36% US$150 million Senior Secured First Lien due 6 years B2 B1 LGD3 36% US$45 million Senior Secured Second Lien due 6.5 years Caa1 Caa1 LGD5 86% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric 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%). SERENA SOFTWARE: 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 U.S. Technology Software sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Serena Software, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2012 B1 B1 LGD3 33% US$400 Million Senior Secured First Lien due 2013 B1 B1 LGD3 33% US$200 Million Senior Subordinated Note due 2016 Caa1 Caa1 LGD5 87% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric 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 San Mateo, California, Serena Software, Inc. -- http://www.serena.com/-- is a software provider focused solely on the design, development, marketing and support of software used to manage and control change in organizations. The company has European offices in Belgium, France, Germany, Italy, Switzerland, the Netherlands and the United Kingdom. VWR INTERNATIONAL: 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 the Healthcare Service and Distribution sectors, the rating agency confirmed its B2 Corporate Family Rating for VWR International Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss- given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. EURO Term Loan B2 Ba3 LGD2 24% Sr. Sec. Guaranteed US Dollar Term Loan due 2011 B2 Ba3 LGD2 24% Sr. Sec. Guaranteed Revolver due 2009 B2 Ba3 LGD2 24% Sr. Unsec. Guaranteed Notes due 2012 B3 B3 LGD4 67% 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 West Chester, Pennsylvania, VWR International, -- http://www.vwr.com-- is engaged in the distribution of scientific products. It serves more than 250,000 customers in the life science, industrial, governmental, health care and educational markets, and also offers Production Supplies and Services for electronic and pharmaceutical production. The company offers more than 750,000 products, from more than 5,000 manufacturers, to over 250,000 customers throughout North America and Europe. In Europe, VWR International maintains operations in Austria, Belgium, Sweden, Ireland, Portugal, Italy, Germany and the United Kingdom. =========== C Y P R U S =========== TMK OAO: TMK Steel Limited Gains Full Ownership ----------------------------------------------- TMK Steel Ltd. has acquired Dalecone Ltd.'s 33% stake in Russian pipe manufacturer OAO TMK, RIA Novosti says. With the acquisition and consolidation, TMK became a wholly owned unit of TMK Steel, controlled by TMK CEO Dmitry Pumpyansky. TMK is also planning to launch an initial public offering of global depositary receipts and common shares both on Russian and international trading floors. According to RIA Novosti, Russian companies, which are thought to be heavily undercapitalized, have been selling or planning to sell their shares in the public to create much-needed funds to compete with foreign groups. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * As reported in TCR-Europe on Sept. 11, Moody's Investors Service assigned a B1 corporate family rating to TMK and a (P)B2 senior unsecured rating to the loan participation notes issued by TMK Capital S.A., guaranteed by the operating subsidiaries of TMK. Moody's said the outlook on both ratings is positive. On Sept. 9, the TCR-Europe reported that Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. =========================== C Z E C H R E P U B L I C =========================== HEXION SPECIALTY: Moody's Rates New Second Lien Notes at B3 ----------------------------------------------------------- Moody's Investors Service assigned B3 ratings to the new guaranteed senior secured second lien notes due 2014 of Hexion Specialty Chemicals Inc. The company expects to issue roughly US$825 million of notes split (55/45) between fixed and floating rate notes. The new notes will be used to refinance roughly US$625 million of existing second lien notes and partially fund a US$500 million dividend to existing shareholders. A US$375 million increase in the company's existing guaranteed senior secured first lien term loan to US$2 billion, rated Ba3, will fund the remainder of the extraordinary dividend. Moody's also affirmed Hexion's other long-term debt ratings and its SGL-2 speculative grade liquidity rating. As a result of this refinancing, the LGD assessment rates have changed. The outlook is stable and the ratings on the existing second lien notes will be withdrawn upon successful completion of the refinancing. New ratings assigned: Hexion Specialty Chemicals Inc. -- Floating Rate Gtd Second Lien Sr Sec Notes due 2014: B3, LGD5, 75% -- Fixed Rate Gtd Second Lien Sr Sec Notes due 2014: B3, LGD5, 75% Ratings affirmed with revised LGD rates: -- US$225 million Gtd Sr Sec Revolving Credit Facility due 5/2011: Ba3, LGD2, 24% from 29% -- US$50 million Gtd Sr Sec Letter of Credit Facility due 5/2011: Ba3, LGD2, 24% from 29% -- US$1,625 million Gtd Sr Sec Term Loan due 5/2013: Ba3, LGD2, 24% from 29%* -- US$300 million Flt Rate Gtd Second Lien Sr Sec Notes due 7/2010: B3, LGD5, 75% from 77%** -- US$325 million 9.0% Gtd Second Lien Sr Sec Notes due 7/2014: B3, LGD5, 75% from 77%** -- US$34 million Pollution Control Revenue Bonds Series 1992 due 12/2009: B3, LGD5, 75% from 77% Ratings affirmed: Hexion Specialty Chemicals Inc. -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 -- US$114.8 million 9.2% Sr. Unsec Debentures due 3/2021: Caa1, LGD6, 94% -- US$246.8 million 7.875% Sr. Unsec Notes due 2/2023: Caa1, LGD6, 94% -- US$78 million 8.375% S.F. Sr. Unsec Debentures due 4/2016: Caa1, LGD6, 94% * Facility size will increase to US$2 billion upon successful completion of the refinancing ** Ratings will be withdrawn is the tender offer is successfully completed; if any stub bonds remain, the rating could be lowered by more than one notch The B3 ratings on Hexion's second lien notes reflect: -- elevated leverage on a historical EBITDA basis, -- the expectation that cash flows will be reduced by pension contributions and ongoing restructuring costs, -- integration risk due to the pace of additional tuck-in acquisitions, and -- concern over financial metrics in the trough of the cycle. Moody's notes that if the company were to significantly increase the size of the secured first lien term loan, as permitted under the indenture for the secured second lien notes, this could cause a downgrade of the ratings on the second lien notes. Hexion has significant pension liabilities and modest litigation exposure, which is unusual for a highly leveraged company. The ratings benefit from: -- the company's size, -- product diversity, -- global operations, and -- the anticipation of significant additional synergies The management expects to generate additional synergies of more than US$100 million from the original merger and subsequent acquisitions. The company's metrics would map to the cusp of the "Ba" and "B" rating category using Moody's Chemical Industry ratings methodology, versus the B2 corporate family ratings. However, given the limited historical data, the pro forma averages may not adequately reflect the company's through-the-cycle performance. The stable outlook reflects the continuing solid operating environment for thermoset resins that has resulted in substantial earnings growth over the past year and the expectation that trailing debt to EBITDA (excluding one-time extraordinary items) will remain elevated at over 5x and free cash flow to debt (excluding restructuring costs) will remain below 5% over the next two years. Moody's believes that 2006 EBITDA will be in excess of US$525 million excluding pro forma adjustments for ongoing acquisitions and planned synergies. Hexion Specialty Chemicals, Inc., headquartered in Columbus, Ohio is a leading producer of commodities such as formaldehyde, bisphenol A and epichlorhydrin, as well as formaldehyde-based thermoset resins, epoxy resins, and versatic acid and its derivatives. The company is also a supplier of specialty resins for inks and specialty coatings sold to a very diverse customer base. Hexion was formed from the merger of Borden Chemicals Inc., Resolution Performance Products LLC, Resolution Specialty Material LLC and the Bakelite Group. The company reported sales of US$4.8 billion on a LTM basis ending June 30, 2006. LG.PHILIPS DISPLAYS: Posts CZK8.4-Billion Losses in 2005 -------------------------------------------------------- LG.Philips Displays Czech Republic s.r.o. released its financial results for the year ended Dec. 31, 2005, Czech News Agency reports. LG.Philips posted recorded CZK8.4 billion in losses on CZK5.03 billion in revenues for 2005, compared with CZK437.5 million in net income on CKZ9.2 billion in revenues for the same period in 2004. The company planned to manufacture 3.36 million cathode ray tubes in 2005, but production stood at 2 million. "The collapse of the market and subsequent decline in prices by 50 percent resulted in an operating loss of CZK1.4 billion," Zuzana Fojtikova, spokeswoman for LG.Philips, told CTK. "The firm also had to create adjustments worth CZK6.6 billion for production technology and some properties at the recommendation of the auditor." Around CZK400 million of the adjustments were for claims against the company's bankrupt parent and sister groups. About LG.Philips Displays Headquartered in Hranice, Czech Republic, LG.Philips Displays Czech Republic manufactures cathode ray tubes used in televisions and computer monitors. LG.Philips Displays Czech Republic s.r.o. is the Czech unit of LG.Philips Displays Holding B.V., the European holding company for LG.Philips Displays. The company's parent, LG.Philips Display Holding B.V. filed for insolvency protection on Jan. 27, along with its Dutch subsidiary, LG.Philips Displays Netherlands B.V., and its German subsidiary in Aachen. LG.Philips plans to stop production of cathode ray tube screens within three-to-four years following a significant decline in the market for CRT, especially in Europe, and a rising market preference to the more modern LCD televisions. * * * As reported in TCR-Europe on June 21, LG.Philips Displays Czech Republic is trying to settle 30% of its EUR230 million debt within the next 18 months as it seeks for a strategic partner in a stab to prolong its existence. LG.Philips, advised by PricewaterhouseCoopers, is currently holding talks with 15 potential strategic partners, mostly liquid crystal display makers and car manufacturers looking for facilities in the region, the paper relates. According to CBW, LG.Philips expects to find a partner by late 2006 or early 2007. The Company has also filed a EUR70-million settlement claim at the Regional Court in Ostrava, North Moravia. Philips, the group's Dutch parent, as well as major creditors, has welcomed the settlement claim, CBW says. The Court might be forced to declare LG.Philips bankrupt if the settlement fails to push through. ============= D E N M A R K ============= HARLAN SPRAGUE: 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 Healthcare Service and Distribution sectors, the rating agency confirmed its B2 Corporate Family Rating for Harlan Sprague Dawley 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 Dollar-Denominated Sr. Sec. Revolver due 2010 B2 B1 LGD3 33% Euro-Denominated Sr. Sec. Revolver due 2010 B2 B1 LGD3 33% First Lien Sec. Term Loan due 2011 B2 B1 LGD3 33% 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 alphanumeric 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 Indianapolis, Indiana, Harlan Sprague Dawley Inc. -- http://www.harlan.com-- is engaged in the commercial production and supply of animal models. In Europe it serves customers throughout the continent via their operations in Denmark, France, Germany, Italy, the Netherlands, Spain, Switzerland and the United Kingdom. Harlan now produces over 250 stocks and strains of laboratory animals. IMAX CORP: Moody's Assigns LGD4 Rating to 9-5/8% Senior Notes ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Gaming, Lodging & Leisure sector, the rating agency confirmed IMAX Corp.'s B3 Corporate Family Rating. Moody's also downgraded the Company's probability-of-default rating on its 9-5/8% Senior Notes due 2010 to Caa1 from B3. Additionally, Moody's assigned an LGD4 rating to these notes, suggesting noteholders will experience a 58% loss in the event of a default. Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). IMAX Corporation -- http://www.imax.com/-- founded in 1967 and headquartered jointly in New York City and Toronto, Canada, is an entertainment technology company, with particular emphasis on film and digital imaging technologies including 3D, post- production, and digital projection. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. The IMAX Theatre Network currently consists of more than 270 IMAX affiliated theatres in 38 countries including Bulgaria, Czech Republic, Denmark, France, Germany, Italy, The Netherlands, Poland, Russia, Spain, Sweden, Switzerland, Turkey and the United Kingdom. =========== F R A N C E =========== ALCATEL SA: Inks LatAm Network Solutions Deal with Telefonica ------------------------------------------------------------- Alcatel S.A. has been selected by Telefonica S.A. to provide solutions for its access, Metro Ethernet, IP edge and optical transport networks in Latin America, enabling Telefonica to offer new high-bandwidth interactive services to its residential and corporate customers. The integrated and flexible solutions, reflecting different stages of deployment in each of these countries, will provide higher bandwidth capacity per end-user, with unique differentiated quality of services. This, in turn, will enable the simultaneous delivery of personalized multimedia services such as IPTV, video on demand and HDTV to residential customers and advanced virtual private network services to enterprise customers. "Our selection of Alcatel as technological partner is based on their broadband, optical and IP service routing market leadership and experience as well as their long-term collaboration with our Group," Horacio Acerbi, Director Services Technology, Telefonica Internacional (Telefonica Latin America), said. "They inspire us with the confidence we need to ensure that our clients can enjoy the new services demanded with the required quality and reliability." "Telefonica is leveraging Alcatel's unparalleled experience in triple play deployments worldwide," Michel Rahier, President of Alcatel's fixed communications activities, said. "Our network infrastructure, based on IP-based industry-leading solutions, is reinforcing Telefonica's worldwide leadership in advanced communication and entertainment services. This success also strengthens our position as partner of choice in such strategic network transformations". About Telefonica Headquartered in Madrid, Spain, Telefonica S.A. -- http://www.telefonica.es/-- provides a range of services mainly in Spain and 13 countries in Latin America. 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. COREL CORP: 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 United States Technology Software sectors last week, the rating agency confirmed its Caa1 Corporate Family Rating for Corel Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2011 B3 B3 LGD3 33% US$90 Million Senior Secured First Lien due 2012 B3 B3 LGD3 33% 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 alphanumeric umeric 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 Ottawa, Ontario, Corel Corporation (NASDAQ:CREL) (TSX:CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). In Europe, the company maintains operations in France, Germany, Italy, the Netherlands, and the United Kingdom. EUROTUNNEL GROUP: Sets Oct. 31 as Target Date for Agreement ----------------------------------------------------------- Negotiations between Eurotunnel Group and its creditor committees are moving forward as they set to come up with an agreement before Oct. 31, Marcel Michelson writes for Reuters citing unidentified sources. Eurotunnel has established Oct. 31 as the target date because Nov. 1 is a public holiday in Europe. The company's administrators have until Nov. 2 to come up with a restructuring plan. "There is a general will to arrive at a solution, and talks are being stepped up with an aim to get to a deal before the end of the month," Reuters quoted a source close to the matter as saying. According to Reuters, Eurotunnel spokeswoman Mady Chabrier disclosed meetings had recently been resumed between the various parties and talks were taking place. The company held good hopes to be able to arrive at a deal, she said. "[Chairman and CEO Jacques] Jacques Gounon, assisted by the administrators, is talking to the various groups in order to be able to present a plan, or at least a synthesis of viewpoints, to the Tribunal before the end of the month," Ms. Chabrier told Reuters. The Paris Commercial Court will then determine whether the plan is balanced and equitable to all stakeholders, before soliciting consents from the creditor committees. Ms. Chabrier said that Eurotunnel's proposed restructuring agreement remain as basis for the talks. As reported in TCR-Europe on Sept 11, the court administrators sent out letters to registered holders of bank debt on Aug. 2, informing them to their appointment to a committee of bank debt holders. This committee will get to vote on Eurotunnel's restructuring plan. Under the French legal proceedings, Eurotunnel creditors have until Oct. 1 to file their claims with the court; administrators have until Nov. 1 to present a restructuring proposal. This plan would have to be circulated to bondholders by Nov. 15 and creditors would have 15 days to vote on it, the company said. According to Eurotunnel, the Paris Commercial Court should give its decision at the end of 2006, or at the latest, at the beginning of 2007. Restructuring Proposals Under Gounon's latest plans, shareholders would receive at least 13% of Eurotunnel's equity after a restructuring. Junior bondholders were offered GBP75 million in cash and some warrants in exchange for their GBP1.9 billion of debt. "At the moment there is an attitude of 'we have to save the company' -- but we can't just accept everything," the source close to the bondholders told Reuters. Eurotunnel had turned down, on June 27, a restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which values the company at EUR7.99 billion, aimed to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by ARCO. The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee, which represents the group's senior creditors. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. EUROTUNNEL GROUP: Third Quarter Total Revenue Up to GBP149.5 Mln ---------------------------------------------------------------- Eurotunnel Group reported growth in activities for the third quarter of 2006. The group disclosed GBP149.5 million in total revenue for 2006 a 7% increase compared with GBP140.1 million total revenue for the same quarter in 2005. "I would like to thank our customers for their loyalty and our teams for their commitment," Jacques Gounon, Chairman and Chief Executive of Eurotunnel disclosed. "They have enabled us to achieve remarkable performance levels this summer. These successes must nevertheless be viewed in context which remains worrying: it is my responsibility to point out that Eurotunnel cannot continue much longer in this course, unless the very serious uncertainty which weighs on its future is removed. Only a vote in favor of the Safeguard plan, which will be put to creditors before the end of the month, can remove this uncertainty." Revenue Eurotunnel's revenue, which results from transport and non- transport activities, totaled GBP149.5 million for the third quarter of 2006. At constant exchange rates, this represents a 7% increase over the same period in the previous year. Shuttle services -- Eurotunnel's core activities -- are the principal drivers of this growth. Revenue from these activities grew by 12% to EUR87.3 million. The Truck service is showing the benefit of the restoration of direct control by Eurotunnel over the sales network. Revenues from the Railways increased slightly to GBP59.8 million for the third quarter in 2006 from GBP58.5 million for the same period in 2005. They include payments under the Minimum Usage Charge, which represented GBP15.4 million for the period; this arrangement will cease at the end of November 2006. Revenue from non-transport activities remains marginal, with a decrease due to a non-recurring item recorded during the summer of 2005. Traffic The number of trucks transported on Eurotunnel's Freight Shuttle service increased by 4%, to 305,850. Eurotunnel's Passenger Shuttles carried 625,862 cars and 17,295 coaches. In the third quarter of 2006, 2,152,063 people chose to travel through the tunnel by Eurostar representing a 10% increase over the same period in 2005, during which traffic growth slowed following attacks on London. Trains operated by the Railways carried 371,910 tonnes of freight in the third quarter of 2006, 3% more than in 2005. Despite this progression, traffic levels remain very much lower than the original forecasts and below the capacity of the Channel Tunnel. Safeguard Procedure Eurotunnel obtained on Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). Under the French legal proceedings, Eurotunnel creditors have until Oct. 1 to file their claims with the court; administrators have until Nov. 1 to present a restructuring proposal. This plan would have to be circulated to bondholders by Nov. 15 and creditors would have 15 days to vote on it, the company said. According to Eurotunnel, the Paris Commercial Court should give its decision at end of 2006, or at the latest, at the beginning of 2007. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. NUANCE COMMS: 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 U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Nuance Communications, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2012 B1 B1 LGD3 30% US$355 Million Senior Secured First Lien due 2013 B1 B1 LGD3 30% 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 alphanumeric 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%). Nuance Communications, Inc., formerly ScanSoft, Inc., is a provider of speech and imaging solutions for business and consumers around the world. Its technologies, applications and services seek to improve user experiences by changing the way people access, share, manage and use information. The company has offices in The Netherlands, Germany, Switzerland, Hungary, Iceland, and the United Kingdom, among others. PROTECTION ONE: Moody's Assigns Loss-Given-Default Ratings ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its B2 Corporate Family Rating for Protection One, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$25 million Sr. sec. Revolver B2 B1 LGD3 36% US$300 million Sr. Sec. Term Loan B2 B1 LGD3 36% US$110 million Sr. Sub. notes Caa1 Caa1 LGD5 89% 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 alphanumeric 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 Wichita, Kansas, Protection One -- http://www.protectionone.com/-- provides installation, maintenance and monitoring of fire and burglar alarm systems. Network Multifamily, the Company's wholly owned subsidiary, is a security provider to the multifamily housing market. Protection One's 2,300 professionals serve its customers from more than 64 branch offices and three monitoring facilities. The company operates in France. RHODIA SA: BNP Paribas Buys 8.17% Stake from Sanofi for EUR183MM ---------------------------------------------------------------- Sanofi-Aventis S.A. sold its remaining 8.17% stake in Rhodia S.A. to BNP Paribas S.A. for EUR183 million, Nicolas Johnson and Marthe Fourcade writes for Bloomberg. Sanofi-Aventis spokesman Jean-Marc Podvin told Bloomberg that the company dropped its holding because it didn't fit with Rhodia's focus on drugs. Headquartered in Paris, France, Rhodia SA (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. Rhodia employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. * * * As reported in TCR-Europe on Oct. 4, Moody's Investors Service assigned (P)B2 rating on the proposed EUR1.1 billion senior unsecured floating rate notes that are to be raised by the Company to fund the refinancing. Outlook is stable. Upon the refinancing of the tendered notes the ratings on these notes will be withdrawn. Standard & Poor's Rating Services assigned Oct. 4, its B- rating to Rhodia's new EUR1.1 billion senior unsecured issue maturing in 2013. At the same time, Standard & Poor's affirmed its B+/B long and short-term corporate credit ratings on Rhodia. The Outlook is stable. Standard & Poor's Ratings Services raised, in July 2006, its long-term corporate credit rating on France-based chemical producer Rhodia S.A. to 'B+' from 'B'. At the same time, the 'B' short-term rating was affirmed and the rating on senior unsecured and subordinated bonds was raised to 'B-' from 'CCC+'. S&P said the outlook is stable. RHODIA S.A.: Majority of Noteholders Tender Notes ------------------------------------------------- Rhodia S.A. disclosed the preliminary results and pricing of its cash tender offer and consent solicitation previously launched on Oct. 2. At the Consent Deadline, Rhodia has received valid offers to tender as: -- 10.50% Senior Notes due 2010: EUR116,241,000 or 99% of the outstanding amount; -- 8.00% Senior Notes due 2010: EUR601,658,000 or 86% of the outstanding amount; and -- 7.625% Senior Notes due 2010: US$196,938,000 or 98% of the outstanding amount. The company passed the voting thresholds required to facilitate the Proposed Amendments. At 3:00 p.m., London time on October 16, 2006, the Notes were priced as follows: Security Reference Fixed Tender Description Security Yield Spread Offer Yield ----------- -------------- ------ ----------- EUR117,650,000 3.701% 50bps 4.201% 10.50% Senior Notes due 2010 EUR700,000,000 3.601% 50bps 4.101% 8.00% Senior Notes due 2010 US$200,000,000 5.081% 50bps 5.581% 7.625% Senior Notes due 2010 Security Total Consent Tender Description Consideration Payment Consideration* ----------- -------------- ------ ----------- EUR117,650,000 EUR1,209.52 EUR30.00 EUR1,179.52 10.50% Senior per Notes due 2010 EUR1,000 principal amount EUR700,000,000 EUR1,062.64 EUR30.00 EUR1,032.64 8.00% Senior per Notes due 2010 EUR1,000 principal amount US$200,000,000 US$1,049.08 US$30.00 US$1,019.08 7.625% Senior per Notes due 2010 US$1,000 Principal amount * Total Consideration minus the Consent Payment Holders who tendered their Notes before the Consent Deadline will receive the Total Consideration on the Early Settlement Date on Oct. 17. Holders who will tender their Notes after the Consent Deadline will be eligible to receive the Tender Consideration on the Final Settlement Date, which is expected to be on Oct. 31. The tender offer is scheduled to expire at 3:00 p.m., London time, on Oct. 30, unless extended. The tender offer and the consent solicitation are being made pursuant to an Offer to Purchase and Consent Solicitation Statement dated Oct. 2 and conducted electronically via the Clearing Systems, in the case of bonds held on Euroclear and Clearstream, and via DTC for bonds held on DTC. Headquartered in Paris, France, Rhodia SA (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. Rhodia employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. * * * As reported in TCR-Europe on Oct. 4, Moody's Investors Service assigned (P)B2 rating on the proposed EUR1.1 billion senior unsecured floating rate notes that are to be raised by the Company to fund the refinancing. Outlook is stable. Upon the refinancing of the tendered notes the ratings on these notes will be withdrawn. Standard & Poor's Rating Services assigned Oct. 4, its B- rating to Rhodia's new EUR1.1 billion senior unsecured issue maturing in 2013. At the same time, Standard & Poor's affirmed its B+/B long and short-term corporate credit ratings on Rhodia. The Outlook is stable. Standard & Poor's Ratings Services raised, in July 2006, its long-term corporate credit rating on France-based chemical producer Rhodia S.A. to 'B+' from 'B'. At the same time, the 'B' short-term rating was affirmed and the rating on senior unsecured and subordinated bonds was raised to 'B-' from 'CCC+'. S&P said the outlook is stable. SCIENTIFIC GAMES: 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 Gaming, Lodging & Leisure sector, the rating agency confirmed Scientific Games Corp.'s B2 Corporate Family Rating. 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 ---------- ------- ------- ------ ---------- Gtd Sr Sec Revolving Credit Facility due 2009 Ba2 Baa3 LGD2 21% Gtd Sr Sec Term Loan C due 2009 Ba2 Baa3 LGD2 21% Gtd Sr Sec Term Loan D due 2009 Ba2 Baa3 LGD2 21% Sr Sub 6 1/4% Notes due 2012 B1 Ba3 LGD5 76% Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). Scientific Games Corp. -- http://www.scientificgames.com/-- is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. The Company is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries including the United Kingdom, Austria, Germany, France and The Netherlands. SERVICE CORPORATION: Moody's Assigns Loss-Given-Default Ratings --------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its Ba3 Corporate Family Rating for Service Corporation International. Additionally, Moody's confirmed its probability-of-default ratings and assigned new loss-given- default ratings on these bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$195 mln 6.5% notes due 2008 B1 LGD4 67% US$342 mln 7.7% notes due 2009 B1 LGD4 67% US$56 mln 7.875% debentures due 2013 B1 LGD4 67% US$250 mln 6.75% notes due 2016 B1 LGD4 67% US$300 mln 7.0% notes due 2017 B1 LGD4 67% US$250 mln Sr. Unsec. notes due 2014 B1 LGD4 67% US$250 mln Sr. Unsec. notes due 2018 B1 LGD4 67% Sr. Unsec. shelf registration B1 LGD4 67% Sr. Sub., Subordinated, and Jr. Sub. shelf registrations B1 LGD4 67% 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 alphanumeric 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 Kansas, Texas, U.S.A. Service Corporation International -- http://www.sci-corp.com/-- provides death-care products and services, with a network of funeral homes and cemeteries. At December 31, 2005, the Company operated 1,058 funeral service locations, 358 cemeteries and 130 crematoria throughout North America, France, Germany and Singapore. WEIGHT WATCHERS: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its Ba1 Corporate Family Rating for Weight Watchers International, Inc. Additionally, Moody's confirmed its probability-of-default ratings and assigned new loss-given-default ratings on these loan obligations: Issuer: Weight Watchers International, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million Sec. Revolver due 2011 Ba1 Ba1 LGD3 32% US$350 million Sec. term loan due 2011 Ba1 Ba1 LGD3 32% Issuer: WeightWatchers.com Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$159 million 1st lien term loan due 2010 Ba3 Ba2 LGD3 38% US$45 million 2nd lien term loan due 2011 B1 B2 LGD5 89% 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 alphanumeric 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 New York, U.S.A., Weight Watchers International -- http://www.weightwatchersinternational.com/-- provides of weight management services, with a presence in 30 countries around the world. The Company serves its customers through Weight Watchers branded products and services, including meetings conducted by Weight Watchers International and its franchisees. ============= G E R M A N Y ============= ALLEGHENY TECHNOLOGIES: Moody's Gives 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 last week, the rating agency confirmed its Ba2 Corporate Family Rating for Allegheny Technologies Inc. and its B1 rating on the company's US$300 million issue of 8.375% senior unsecured notes due 2011. Moody's also assigned an LGD6 rating to those bonds, suggesting noteholders will experience a 90% loss in the event of a default. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on Allegheny Ludlum Corporation's and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 Million Gtd. Debentures due 2025 Ba2 Ba2 LGD4 53% 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 alphanumeric 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 Pittsburgh, Pennsylvania, Allegheny Technologies Inc. -- http://www.alleghenytechnologies.com/-- is a specialty stainless steel and alloy producer. The company has international locations in India, France, Germany, the United Kingdom, Australia, Korea, Singapore, and Malaysia, among others. ANCORA VERSICHERUNGS: Claims Registration Ends October 27 --------------------------------------------------------- Creditors of Ancora Versicherungs-Aktiengesellschaft have until Oct. 27 to register their claims with court-appointed provisional administrator Burckhardt Reimer. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Dec. 18 at the same venue. The District Court of Hamburg opened bankruptcy proceedings against Ancora Versicherungs-Aktiengesellschaft on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Ancora Versicherungs-Aktiengesellschaft Monkedamm 15 20457 Hamburg, Germany The administrator can be contacted at: Burckhardt Reimer Domstrasse 15 20095 Hamburg, Germany Tel: 41522416 Fax: 41522411 B+B TRANSPORT: Claims Registration Ends October 25 -------------------------------------------------- Creditors of B+B Transport GmbH have until Oct. 25 to register their claims with court-appointed provisional administrator Axel Raap. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Nov. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt (Oder) opened bankruptcy proceedings against B+B Transport GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: B+B Transport GmbH Bahnhofstrasse 13 15328 Manschnow, Germany The administrator can be contacted at: Axel Raap Marburger Road 2 10789 Berlin, Germany CHANNEL WELL: Claims Registration Ends October 25 ------------------------------------------------- Creditors of Channel Well Technology (Europe) GmbH have until Oct. 25 to register their claims with court-appointed provisional administrator Gerrit Hoelzle. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Dec. 6 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Area C315 3rd Floor Cardinal Galen Road 124-132 47058 Duisburg, 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 Duisburg opened bankruptcy proceedings against Channel Well Technology (Europe) GmbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Channel Well Technology (Europe) GmbH Dr.-Alfred-Herrhausen-Avenue 61 47228 Duisburg, Germany Attn: Hsiu-Hua Pan Yang, Manager 3rd FL-2 888 Jing-Gwo Road ROC-Taoyuan City, Taiwan The administrator can be contacted at: Dr. Gerrit Hoelzle Rheinstrasse 75 47623 Kevelaer, Germany CONVERIUM RUECKVERSICHERUNG: Moody's Rates US$200M Notes at Ba1 --------------------------------------------------------------- Moody's Investors Service placed the Baa1 insurance financial strength rating of Converium AG and all related ratings as detailed below on review for possible upgrade. Commenting on its decision, Moody's said that Converium's announcement earlier [Tues]day that it had reached a definitive agreement to sell its North American operations to National Indemnity Company represents an important landmark on Converium's road to recovery. Completion of this transaction will materially reduce uncertainty relating to reserve adequacy, free up management time to focus on steering the Group's ongoing business, as well as improve the financial leverage and fixed charge coverage ratios. Moody's also said that profitability in the first half of 2006 was excellent, with combined ratio at 97.9% despite reduced premium volumes compared to prior years and hence a higher administration expense ratio. Moody's expects that the expense ratio will decline over the next 12 -- 18 months as the improvement in Converium's franchise will manifest itself in higher volumes of new business. The review will focus on the successful completion of the sale of North American operations and Converium's ability to achieve further improvement in its franchise through good business renewals at year-end, as well as to maintain strong levels of capitalisation and a conservative financial leverage profile, as evidenced by financial leverage ratio in the high teens. Moody's also expects the Group to report a combined ratio of less than 100% and ROE of 10% both across the reinsurance cycle and in 2006. The date of the preceding rating action was April 27 when the outlook on Converium's ratings was changed from negative to stable. Converium AG, based in Zurich, Switzerland, is the main operating company of Converium Holding AG, Zug, Switzerland. Converium Holding AG reported consolidated Gross Premiums Written of US$1,994.3 million in 2005 and shareholders' equity of US$1,796.1 million as of 30 June 2006. Ratings placed on review for possible upgrade: Converium AG * insurance financial strength rating of Baa1; Converium Rueckversicherung (Deutschland) AG * insurance financial strength rating of Baa1; and * US$200 million 8.25% guaranteed subordinated notes due December 2032 (callable in 2007) issued by Converium Finance S.A., a wholly owned subsidiary of Converium Holding AG -- subordinated debt rating of Ba1. GOEBENSTRASSE 3: Creditors' Meeting Slated for October 26 --------------------------------------------------------- The court-appointed provisional administrator Goebenstrasse 3 KG KIBUS Geschaftsfuehrungs-GmbH & Co., Christoph Schulte- Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:20 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 9:10 a.m. on Jan. 18, 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 Goebenstrasse 3 KG KIBUS Geschaftsfuehrungs- GmbH & Co. on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Goebenstrasse 3 KG KIBUS Geschaftsfuehrungs-GmbH & Co. Brabanter Str. 18-20 10713 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany GOTTSCHALKSTRASSE WOHNEN: Creditors' Meeting Slated for Oct. 26 --------------------------------------------------------------- The court-appointed provisional administrator Gottschalkstrasse Wohnen GmbH & Co. KG, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:25 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 9:15 a.m. on Jan. 18, 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 Gottschalkstrasse Wohnen GmbH & Co. KG on Sept. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gottschalkstrasse Wohnen GmbH & Co. KG Bundesplatz 8 10715 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany HC SUHL 99: Claims Registration Ends October 30 ----------------------------------------------- Creditors of HC Suhl 99 e.V. have until Oct. 30 to register their claims with court-appointed provisional administrator Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Meiningen Hall A 0208 Linden Avenue 15 Meiningen, 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 Meiningen opened bankruptcy proceedings against HC Suhl 99 e.V. on Aug. 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HC Suhl 99 e.V. Ringbergstr. 77 98528 Suhl, Germany The administrator can be contacted at: Rolf Rombach Magdeburger Avenue 159 99086 Erfurt, Germany ICP GESELLSCHAFT: Claims Registration Ends October 27 ----------------------------------------------------- Creditors of ICP Gesellschaft fuer International Cards Processing mbH have until Oct. 27 to register their claims with court-appointed provisional administrator Hendrik Gittermann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 24 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against ICP Gesellschaft fuer International Cards Processing mbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ICP Gesellschaft fuer International Cards Processing mbH Attn: Volker Nast, Manager Wilhelm-Stein-Weg 24 22339 Hamburg, Germany The administrator can be contacted at: Hendrik Gittermann Sandtorkai 62 20457 Hamburg, Germany Tel: (040) 306969-10 J. STEHLE & SOEHNE: Claims Registration Ends October 27 ------------------------------------------------------- Creditors of J. Stehle & Soehne GmbH have until Oct. 27 to register their claims with court-appointed provisional administrator Steffen Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Esslingen Hall 1 1st Floor Ritterstr. 5 Esslingen, 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 Esslingen opened bankruptcy proceedings against J. Stehle & Soehne GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: J. Stehle & Soehne GmbH Attn: Beatrix Gross, Manager Waldstr. 26-28 73773 Aichwald, Germany The administrator can be contacted at: Steffen Beck Breitscheidstr. 10 70174 Stuttgart, Germany Tel: 0711/252566-0 Fax: 0711/252566-66 MARKT KONZEPT: Claims Registration Ends October 30 -------------------------------------------------- Creditors of Markt Konzept GmbH have until Oct. 30 to register their claims with court-appointed provisional administrator Holger-Rene Bruckhoff. Creditors and other interested parties are encouraged to attend the meeting at 11:22 a.m. on Nov. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 14 Ground Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Markt Konzept GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Markt Konzept GmbH Hansaring 4 50670 Cologne, Germany Attn: Dirk Dott, Manager Frankstrasse 37 50996 Cologne, Germany The administrator can be contacted at: Holger-Rene Bruckhoff Theodor-Heuss-Ring 19-21 50668 Cologne, Germany NOVELIS INC: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors last week, the rating agency confirmed its B1 Corporate Family Rating for Novelis 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: Novelis Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million Gtd. Sr. Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 billion 7.25% Gtd. Senior Unsecured Notes due 2015 B2 B3 LGD5 76% Issuer: Novelis Corporation Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% 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 alphanumeric 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 Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. In Europe, the company maintains operations in France, Germany, Luxembourg, Switzerland and the United Kingdom. RENE SCHULZ: Claims Registration Ends October 30 ------------------------------------------------ Creditors of Rene Schulz Fras- und Strahltechnik GmbH have until Oct. 30 to register their claims with court-appointed provisional administrator Rolf Rattunde. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Nov. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Rene Schulz Fras- und Strahltechnik GmbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Rene Schulz Fras- und Strahltechnik GmbH Brauhausstr. 5 13086 Berlin, Germany The administrator can be contacted at: Rolf Rattunde Kurfuerstendamm 212 10719 Berlin, Germany RICHARD PRIEN: Claims Registration Ends October 23 -------------------------------------------------- Creditors of Richard Prien Baugesellschaft mbH have until Oct. 23 to register their claims with court-appointed provisional administrator Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 7 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kiel Hall 17 Kiel, 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 Kiel opened bankruptcy proceedings against Richard Prien Baugesellschaft mbH on Sept. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Richard Prien Baugesellschaft mbH Attn: Hans Richard Prien, Manager Buergermeister-Schade-Str. 24 24232 Schoenkirchen, Germany The administrator can be contacted at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg, Germany SERVICE CORPORATION: Moody's Assigns Loss-Given-Default Ratings --------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its Ba3 Corporate Family Rating for Service Corporation International. Additionally, Moody's confirmed its probability-of-default ratings and assigned new loss-given- default ratings on these bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$195 mln 6.5% notes due 2008 B1 LGD4 67% US$342 mln 7.7% notes due 2009 B1 LGD4 67% US$56 mln 7.875% debentures due 2013 B1 LGD4 67% US$250 mln 6.75% notes due 2016 B1 LGD4 67% US$300 mln 7.0% notes due 2017 B1 LGD4 67% US$250 mln Sr. Unsec. notes due 2014 B1 LGD4 67% US$250 mln Sr. Unsec. notes due 2018 B1 LGD4 67% Sr. Unsec. shelf registration B1 LGD4 67% Sr. Sub., Subordinated, and Jr. Sub. shelf registrations B1 LGD4 67% 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 alphanumeric 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 Kansas, Texas, U.S.A. Service Corporation International -- http://www.sci-corp.com/-- provides death-care products and services, with a network of funeral homes and cemeteries. At December 31, 2005, the Company operated 1,058 funeral service locations, 358 cemeteries and 130 crematoria throughout North America, France, Germany and Singapore. =========== G R E E C E =========== WEIGHT WATCHERS: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its Ba1 Corporate Family Rating for Weight Watchers International, Inc. Additionally, Moody's confirmed its probability-of-default ratings and assigned new loss-given-default ratings on these loan obligations: Issuer: Weight Watchers International, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million Sec. Revolver due 2011 Ba1 Ba1 LGD3 32% US$350 million Sec. term loan due 2011 Ba1 Ba1 LGD3 32% Issuer: WeightWatchers.com Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$159 million 1st lien term loan due 2010 Ba3 Ba2 LGD3 38% US$45 million 2nd lien term loan due 2011 B1 B2 LGD5 89% 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 alphanumeric 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 New York, U.S.A., Weight Watchers International -- http://www.weightwatchersinternational.com/-- provides of weight management services, with a presence in 30 countries around the world. The Company serves its customers through Weight Watchers branded products and services, including meetings conducted by Weight Watchers International and its franchisees. ============= I C E L A N D ============= CENTURY ALUMINUM: 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 Metals & Mining sectors last week, the rating agency confirmed its Ba3 Corporate Family Rating for Century Aluminum Company. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on the company's bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$250 million 7.5% Gtd. Senior Unsecured Notes due 2014 Ba3 B1 LGD5 77% US$175 million 1.75% Convertible Gtd. Sr. Unsecured Notes due 2024 Ba3 B1 LGD5 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 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 alphanumeric 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 Monterey, California, Century Aluminum Company (NASDAQ:CENX) -- http://www.centuryca.com/-- owns and operates a 244,000 mtpy plant at Hawesville, Kentucky; a 170,000 mtpy plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at Grundartangi, Iceland. The company also owns a 49.67% interest in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina. ALCOA Inc. owns the remainder of the plant and is the operating partner. Century also holds a 50% share of the 1.25 million mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets in Jamaica. ============= I R E L A N D ============= CENTRAL PARKING: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its Ba3 Corporate Family Rating for Central Parking Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loan obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$74-million Sec. term loan due 2010 Ba3 Baa3 LGD2 15% US$225 million Sec. revolver due 2008 Ba3 Baa3 LGD2 15% US$78 million 5.25% convertible trust issued preferred securities B2 B2 LGD6 93% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About Central Parking Headquartered in Nashville, Tennessee, U.S.A., Central Parking Corporation -- http://www.parking.com/operates 3,399 parking facilities containing 1,564,356 spaces in 37 states, the District of Columbia, Canada, Puerto Rico, Mexico, Chile, Colombia, Peru, Venezuela, the United Kingdom, the Republic of Ireland, Spain, Germany, Poland, Greece and Switzerland. The Company operates or manages multi-level parking facilities and surface lots. It also provides ancillary services, including parking consulting, shuttle bus, valet, parking meter collection, and enforcement and billing services. Central Parking operates parking facilities under three general types of arrangements: management contracts, leases and fee ownership. SS&C TECHNOLOGIES: 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 U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for SS&C Technologies, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2012 B2 Ba3 LGD2 28% US$200 Million Senior Secured First Lien due 2013 B2 Ba3 LGD2 28% US$205 Million Senior Subordinated Note due 2016 Caa1 Caa1 LGD5 83% 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 alphanumeric 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 Windsor, Connecticut, SS&C Technologies, Inc. -- http://www.ssctech.com/-- provides software and outsourcing solutions for the financial services industry. The company has international offices in Malaysia, Singapore, Japan, Ireland, Australia and the Netherlands, among others. ========= I T A L Y ========= DA VINCI SYNTHETIC: Fitch Gives BB+ Rating on EUR15.6-Mln Notes --------------------------------------------------------------- Fitch Ratings assigned expected ratings to Da Vinci Synthetic Plc's credit-linked notes due 2018: -- EUR25.9 million Class A notes: A; -- EUR20.8 million Class B notes: BBB; and -- EUR15.6 million Class C notes: BB+. The final ratings are contingent upon receipt of final documents conforming to information already received and legal opinions satisfactory to Fitch. The transaction is a synthetic securitization of a portfolio of financial leases and loans secured on aircraft. It will refinance the portfolio of Leonardo Synthetic Plc, which was redeemed on Sept. 20. Replenishment and substitution of the portfolio is allowed for three years, subject to rating confirmation and compliance with certain criteria. The expected ratings reflect the quality of the reference portfolio, the available credit enhancement provided by subordination, the credit rating of Merrill Lynch International Bank as provider of the credit default swap, the credit rating of Merrill Lynch & Co as guarantor for the CDS, Bank Intesa S.p.A. as originator and servicer and the transaction's sound financial and legal structure. MLI will enter into a hedging swap with BI selling protection on a reference portfolio of US$650 million. MLI will buy protection on the reference portfolio under three CDS, dividing up the risk of the portfolio in the first loss piece tranche of US$26 million, mezzanine tranche of EUR62.3 million and a senior tranche of US$545.8 million. The mezzanine CDS is bought by the issuer, which in turn issued CLNs to protect itself. The issuer will issue the notes to fund the collateral required under the mezzanine CDS for a total notional of EUR62.3 million. The proceeds of the notes collateral will be placed into a deposit account held by the issuer at BI, the deposit bank. Appropriate rating downgrade provisions will apply if the rating of the deposit bank is below the minimum required rating of F1. Should a credit event occur on a reference claim in the portfolio, a realized loss will be established. Losses up to a threshold amount of US$26 million will be allocated first to the first loss piece. Collaterals will be released to settle the losses in excess of the threshold amount. The reduction of collateral will be allocated to the notes in reverse order of seniority. EFIBANCA: Merger Prompts Moody's to Review Ratings & May Upgrade ---------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. According to the proposed transaction, BPVN and BPI will merge to create a new cooperative banking group named Gruppo Bancario Popolare, which will become the third largest bank in Italy by number of branches. The combined bank will have market shares of around 10% in Northern Italy, as well as becoming the country's largest cooperative bank. The transaction is subject to various approvals including that of each bank's board of directors as well as regulatory and shareholder approval. The plan is for this process to be completed by the end of the first quarter of 2007. Detailed industrial plans are due to be drawn up in the coming months, but Moody's understands that synergies of EUR500 million are targeted, to be split for EUR220 million of cost synergies and EUR280 million revenue synergies. The new group has stated that it will have its legal headquarters in Verona, and its operating headquarters in Verona and Lodi. Moody's said that its review process on BPVN will focus on: -- the detailed industrial integration plan; -- the impact that the merger will have on BPVN's credit and risk profile considering BPI's substantial scale within the new group and its slowly improving but still fragile credit and risk profile; and -- the challenges in merging and integrating the group considering its organizational complexity while taking into account the good track record of BPVN's management in integrating with other modestly performing banks. Commenting on the review for possible upgrade of BPI's ratings, Moody's said that this reflects the expectation of improvement in the bank's modest credit and financial profile thanks to its merger with a stronger banking group. The rating agency added that the review process will focus on BPI's strategic integration within the new group and the extent to which the new group will be able to restore and improve its risk and financial performance. Moody's added that the review for possible upgrade also affects the ratings of BPI's investment banking subsidiary Efibanca given the significant strategic and operational integration of this subsidiary within the BPI group. The review on Efibanca will focus on the same elements as for BPI with a particular focus on assessing the strategic role of Efibanca within the new banking group. Moody's noted that the review period may be longer than the normal three month period given the proposed timetable for the transactions. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 Headquartered in Verona, Italy, Banco Popolare di Verona e Novara had consolidated total assets of EUR65.3 billion as at the end of June 2006. Headquartered in Lodi, Italy, Banca Popolare Italiana had consolidated total assets of EUR45.8 billion as at the end of June 2006. Headquartered in Rome, Italy, Efibanca had consolidated total assets of EUR5.7 billion as at the end of December 2005. HILTON HOTELS: 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 gaming, lodging and leisure sectors, the rating agency confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp. Additionally, Moody's revised and 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 ---------- ------- ------- ------ ---------- Senior Notes with an average rate of 8.1% due 2007 - 2031 Ba2 Ba2 LGD4 53% Chilean inflation indexed note effective rate 7.65% due 2009 Ba2 Ba2 LGD4 53% 3.375% Contingently convertible senior notes due 2023 Ba2 Ba2 LGD4 53% Minimum Leases Commitments Ba2 Ba2 LGD4 53% Term Loan A at adjustable rates due 2011 Ba2 Ba2 LGD4 53% Term Loan B at adjustable rates due 2013 Ba2 Ba2 LGD4 53% Revolving loans at adjustable rates, due 2011 Ba2 Ba2 LGD4 53% Senior unsecured debt shelf (P)Ba2 (P)Ba2 LGD4 53% Subordinate debt Shelf (P)Ba3 (P)B1 LGD6 97% Preferred (P)B1 (P)B1 LGD6 97% 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 alphanumeric 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 Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. In Europe, Hilton Hotels operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands and Sweden. POPOLARE ITALIANA: Moody's Reviews D Financial Strength Rating -------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. According to the proposed transaction, BPVN and BPI will merge to create a new cooperative banking group named Gruppo Bancario Popolare, which will become the third largest bank in Italy by number of branches. The combined bank will have market shares of around 10% in Northern Italy, as well as becoming the country's largest cooperative bank. The transaction is subject to various approvals including that of each bank's board of directors as well as regulatory and shareholder approval. The plan is for this process to be completed by the end of the first quarter of 2007. Detailed industrial plans are due to be drawn up in the coming months, but Moody's understands that synergies of EUR500 million are targeted, to be split for EUR220 million of cost synergies and EUR280 million revenue synergies. The new group has stated that it will have its legal headquarters in Verona, and its operating headquarters in Verona and Lodi. Moody's said that its review process on BPVN will focus on: -- the detailed industrial integration plan; -- the impact that the merger will have on BPVN's credit and risk profile considering BPI's substantial scale within the new group and its slowly improving but still fragile credit and risk profile; and -- the challenges in merging and integrating the group considering its organizational complexity while taking into account the good track record of BPVN's management in integrating with other modestly performing banks. Commenting on the review for possible upgrade of BPI's ratings, Moody's said that this reflects the expectation of improvement in the bank's modest credit and financial profile thanks to its merger with a stronger banking group. The rating agency added that the review process will focus on BPI's strategic integration within the new group and the extent to which the new group will be able to restore and improve its risk and financial performance. Moody's added that the review for possible upgrade also affects the ratings of BPI's investment banking subsidiary Efibanca given the significant strategic and operational integration of this subsidiary within the BPI group. The review on Efibanca will focus on the same elements as for BPI with a particular focus on assessing the strategic role of Efibanca within the new banking group. Moody's noted that the review period may be longer than the normal three month period given the proposed timetable for the transactions. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 Headquartered in Verona, Italy, Banco Popolare di Verona e Novara had consolidated total assets of EUR65.3 billion as at the end of June 2006. Headquartered in Lodi, Italy, Banca Popolare Italiana had consolidated total assets of EUR45.8 billion as at the end of June 2006. Headquartered in Rome, Italy, Efibanca had consolidated total assets of EUR5.7 billion as at the end of December 2005. =================== K A Z A K H S T A N =================== ARDAGER-RODNIK: Akmola Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Ardager-Rodnik on Sept. 4. LLP Ardager-Rodnik is located at: Kokshetau Akmola Region Kazakhstan ECOLINE ENTERPRISES: Creditors Must File Claims by Nov. 10 ---------------------------------------------------------- LLP Ecoline Enterprises has declared insolvency. Creditors have until Nov. 10 to submit written proofs of claim to: LLP Ecoline Enterprises Kazybek bi Str. 17a Taraz Jambyl Region Kazakhstan ICEBERG: Proof of Claim Deadline Slated for Nov. 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Iceberg into compulsory liquidation. Creditors have until Nov. 8 to submit written proofs of claim to: LLP Iceberg Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan IVIKON KURYLYS: Creditors Must File Claims by Nov. 10 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Ivikon Kurylys insolvent on Aug. 25. Creditors have until Nov. 10 to submit written proofs of claim to: LLP Ivikon Kurylys Office 74, 75 Kazybek bi Str. 50 Almaty, Kazakhstan Tel: 8 (3272) 72-12-50 8 (3272) 72-18-09 MADINA: Proof of Claim Deadline Slated for Nov. 8 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region entered an order placing LLP Madina into compulsory liquidation. Creditors have until Nov. 8 to submit written proofs of claim to: LLP Madina Jambyl Str. 9 Karaganda Karaganda Region Kazakhstan MUNAISHY-SERVICE: Claims Registration Ends Nov. 10 -------------------------------------------------- LLP Munaishy-Service has declared insolvency. Creditors have until Nov. 10 to submit written proofs of claim to: LLP Munaishy-Service Auezov Str.1/2 Sarykemer Baizak District Jambyl Region Kazakhstan POKROVOSKOYE: Kostanai Court Begins Bankruptcy Proceedings ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region commenced bankruptcy proceedings against LLP Agro Firm Pokrovoskoye on Aug. 28. LLP Pokrovoskoye is located at: Pokrovka Taran District Kostanai Region Kazakhstan SHIPA SERVICE: Mangistau Court Starts Bankruptcy Procedure ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region commenced bankruptcy proceedings against LLP Shipa Service on Sept. 5. The Specialized Inter-Regional Economic Court of Mangistau Region can be reached at: Building of the former Kindergarten 51 Micro District 27 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 41-22-37 TECHNICOM LTD: Creditors' Claims Due Nov. 10 -------------------------------------------- LLP Technicom Ltd. has declared insolvency. Creditors have until Nov. 10 to submit written proofs of claim to: LLP Technicom Ltd. Korchagin Str. 100-99 Rudnyi Kostanai Region Kazakhstan =================== K Y R G Y Z S T A N =================== MURAT AGROTRADING: Proof of Claim Deadline Slated for Nov. 24 ------------------------------------------------------------- LLC Murat Agrotrading has declared insolvency. Creditors have until Nov. 24 to submit written proofs of claim. Inquiries can be addressed to (0-502) 22-57-84. =========== L A T V I A =========== BALTIC BANK: Moody's May Upgrade Ba2 Covered Bond Rating -------------------------------------------------------- Moody's Investors Service placed on review for possible upgrade the Ba2 rating of Covered Bonds issued by Baltic Trust Bank. This Rating Action follows the review for possible upgrade of BTB's long-term foreign currency deposit rating. The Covered Bond Rating addresses the expected loss posed to investors by the legal final maturity. 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. ===================== N E T H E R L A N D S ===================== BASELL AF: Fitch Rates Senior Secured Facilities at BB+ ------------------------------------------------------- Fitch Ratings assigned European chemical producer Basell AF SCA an Issuer Default rating of BB- with Stable Outlook and a Short- term rating of B. At the same time, Fitch has assigned Basell's senior secured facilities at BB+ rating and its US$615 million and EUR500 million 8.375% senior notes due 2015 a B+ rating. The BB- IDR reflects Basell's position as a leading international polyolefin producer and its degree of financial leverage following the LBO in May 2005. Although Basell is exposed to cyclical effects in its core polyolefins market, the company accrues some degree of stability from its high margin, non-cyclical process technology division. The BB+ rating on the senior secured facilities reflects the above-average recovery prospects for this instrument upon default based on its ranking, security package and average senior leverage. The B+ rating on the senior notes reflects their contractual subordination and subordinated collateral package and therefore the more limited recoveries expected for this instrument. "Overall Basell should be well-placed to sustain its current financial structure through the cyclical downturn expected in 2008/9, although further debt prepayments would enhance the company's financial flexibility," Matthias Volkmer, Associate Director in Fitch's Leveraged Finance team disclosed. "Nonetheless, relative to its leveraged peers, Basell's leverage is moderate and supports the BB- rating level." The largely debt-funded LBO of Basell has resulted in the requirement for strong cash flow generation and somewhat limits its headroom to maneuver in adverse market conditions. As per June 2006, net debt-to-adjusted LTM EBITDA was 3.5x, pension- adjusted net leverage was 4.2x and lease-adjusted interest coverage was 4x. The company's comfortable cash position of EUR479 million at H106 allowed management to announce an additional voluntary senior debt prepayment of EUR150 million, which reduced gross financial leverage by approximately 0.2x as of August 2006. Further debt prepayments from excess cashflow are anticipated in 2007. In addition to commodity polyolefins, the company operates the world's largest compounding capacity for advanced polyolefins and its process technology division sells catalysts and licenses process technology to other polyolefin producers. Sales from these divisions typically exhibit higher and more stable margins than the more standard polyolefin products, which are exposed to both cyclical demand and volatile feedstock prices. In addition, process technology supports Basell's expansion into joint ventures, which in turn enables the company to establish a presence in growth markets such as the Middle East. Basell was formed in 2000 when its previous shareholders BASF and Shell combined their respective polypropylene businesses with their existing polyethylene joint venture. Following the LBO, affiliated companies of Access Industries Group, a New York private equity firm own the group. CORUS GROUP: Confirms Tata Steel's GBP4.1-Bln Takeover Proposal -------------------------------------------------------------- Corus Group Plc confirmed a GBP4.1 billion approach from India's Tata Steel, BBC reports. Corus said Tata offered to acquire the company for 455p per share, noting that the Indian group has yet to submit a full offer. Corus and Tata are currently holding talks over the matter, the company said in a statement. The offer, BBC notes, is below Corus' share price. Corus shares were trading a 479 pence apiece Monday in London. Analysts had said that Tata has to cough out up to GBP5.6 billion, or 580 pence per share, to acquire Corus, BBC reports. As reported in TCR-Europe on Oct. 11, Tata Steel was set to launch a GBP5 billion takeover bid for Corus Group. According to The Times, speculations on the possible takeover bid rose after Tata told the Stock Exchange that it was considering a number of takeover opportunities, including Corus. It is also believed that Tata may choose Corus's option of a joint venture rather than a full takeover. Tata had prepared a GBP3.5 billion financing deal to make the acquisition, BBC cited the Sunday Telegraph. If the deal materializes, a merger would form the world's fift largest steelmaker. About Tata Steel Headquartered in Mumbai, India, Tata Steel -- http://www.tatasteel.com/-- is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). It is a small steel producer by global standards, but has the backing of the giant Tata Group, one of India's largest companies with interests as diverse as carmaking, communications, tea and oil. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported by TCR-Europe on June 21, Standard & Poor's removed Corus Group PLC's CreditWatch and raised its long-term corporate credit rating to 'BB' from 'BB-', reflecting the group's improved financial risk profile. S&P said the Outlook is stable. Fitch Ratings changed Corus Group PLC's Outlook to Positive from Stable and affirmed the Issuer Default Rating at BB- following the company's announcement of its 2005 results and plan to dispose its aluminium business for EUR826 million. Corus' affirmed debt instruments include: a) Corus Group PLC EUR800 mln 7.5% senior notes B+; b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+; c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+; and d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+. As reported in TCR-Europe on May 11, Moody's Investors Service upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. LAURUS NV: Recommends Jan H. Ozinga as Supervisory Director ----------------------------------------------------------- Laurus N.V.'s Supervisory Board will recommend the appointment of Jan H. Ozinga as Supervisory Director of Laurus at the Extraordinary General Meeting of Shareholders to be held on Nov. 3. The Board's recommendations followed Jacques P.M.J. Tierny's resignation as member of the Supervisory Board effective July 11. In accordance with the existing corporate governance agreement, Mr. Ozinga has been nominated for appointment by major shareholder, Casino. The works council has declared that it will not recommend persons for appointment in the Supervisory Board. A Dutch citizen, Mr. Ozinga, 41 years old, has been Casino's Executive Vice-President in International Development since 2004. The recommended appointment fits the draft profile drawn up for the Supervisory Board and contributes to the required levels of expertise and capabilities within the Supervisory Board. Headquartered in AD's-Hertogenbosch, the Netherlands, Laurus N.V. -- http://www.laurus.nl/-- operates 700 supermarket & off- license stores, employs about 24,000 workers and holds a 14.3% market share in 2005. Laurus was formed on Oct. 30, 1998, through a merger of De Boer Unigro N.V. and Vendex Food Groep B.V. In January, the company disclosed its intention to sell its Edah and Konmar Superstores operations in order to focus on its Super de Boer format. Super de Boer counts 400 supermarkets, half of it is owned by Laurus and the other half is run by affiliated retailers. * * * Laurus told Ian Bickerton of the Financial Times in September that the company was renegotiating financing arrangements with its banks, after it warned creditors that the company would breach loan covenants and be loss-making this year. In 2004, Laurus suffered a net loss of EUR128 million, a sharp reversal compared with 2003, when the positive net result of EUR9 million marked an -- albeit modest -- return to profitability for the first time in several years. In fighting the price war, which broke out in October 2003 and continued unabated in 2004, Laurus implemented substantial price cuts within all three retail formats, which, combined with the reduced sales volume, had a major negative impact on the result. In 2005, the company posted a EUR66 million net loss against EUR273 million in gross profits. LG.PHILIPS DISPLAYS: Czech Unit Posts CZK8.4-Bln Losses in 2005 --------------------------------------------------------------- LG.Philips Displays Czech Republic s.r.o. released its financial results for the year ended Dec. 31, 2005, Czech News Agency reports. LG.Philips posted recorded CZK8.4 billion in losses on CZK5.03 billion in revenues for 2005, compared with CZK437.5 million in net income on CKZ9.2 billion in revenues for the same period in 2004. The company planned to manufacture 3.36 million cathode ray tubes in 2005, but production stood at 2 million. "The collapse of the market and subsequent decline in prices by 50 percent resulted in an operating loss of CZK1.4 billion," Zuzana Fojtikova, spokeswoman for LG.Philips, told CTK. "The firm also had to create adjustments worth CZK6.6 billion for production technology and some properties at the recommendation of the auditor." Around CZK400 million of the adjustments were for claims against the company's bankrupt parent and sister groups. About LG.Philips Displays Headquartered in Hranice, Czech Republic, LG.Philips Displays Czech Republic manufactures cathode ray tubes used in televisions and computer monitors. LG.Philips Displays Czech Republic s.r.o. is the Czech unit of LG.Philips Displays Holding B.V., the European holding company for LG.Philips Displays. The company's parent, LG.Philips Display Holding B.V. filed for insolvency protection on Jan. 27, along with its Dutch subsidiary, LG.Philips Displays Netherlands B.V., and its German subsidiary in Aachen. LG.Philips plans to stop production of cathode ray tube screens within three-to-four years following a significant decline in the market for CRT, especially in Europe, and a rising market preference to the more modern LCD televisions. * * * As reported in TCR-Europe on June 21, LG.Philips Displays Czech Republic is trying to settle 30% of its EUR230 million debt within the next 18 months as it seeks for a strategic partner in a stab to prolong its existence. LG.Philips, advised by PricewaterhouseCoopers, is currently holding talks with 15 potential strategic partners, mostly liquid crystal display makers and car manufacturers looking for facilities in the region, the paper relates. According to CBW, LG.Philips expects to find a partner by late 2006 or early 2007. The Company has also filed a EUR70-million settlement claim at the Regional Court in Ostrava, North Moravia. Philips, the group's Dutch parent, as well as major creditors, has welcomed the settlement claim, CBW says. The Court might be forced to declare LG.Philips bankrupt if the settlement fails to push through. SCIENTIFIC GAMES: 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 Gaming, Lodging & Leisure sector, the rating agency confirmed Scientific Games Corp.'s B2 Corporate Family Rating. 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 ---------- ------- ------- ------ ---------- Gtd Sr Sec Revolving Credit Facility due 2009 Ba2 Baa3 LGD2 21% Gtd Sr Sec Term Loan C due 2009 Ba2 Baa3 LGD2 21% Gtd Sr Sec Term Loan D due 2009 Ba2 Baa3 LGD2 21% Sr Sub 6 1/4% Notes due 2012 B1 Ba3 LGD5 76% Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). Scientific Games Corp. -- http://www.scientificgames.com/-- is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. The Company is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries including the United Kingdom, Austria, Germany, France and The Netherlands. SS&C TECHNOLOGIES: 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 U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for SS&C Technologies, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2012 B2 Ba3 LGD2 28% US$200 Million Senior Secured First Lien due 2013 B2 Ba3 LGD2 28% US$205 Million Senior Subordinated Note due 2016 Caa1 Caa1 LGD5 83% 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 alphanumeric 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 Windsor, Connecticut, SS&C Technologies, Inc. -- http://www.ssctech.com/-- provides software and outsourcing solutions for the financial services industry. The company has international offices in Malaysia, Singapore, Japan, Ireland, Australia and the Netherlands, among others. SYNIVERSE TECHNOLOGIES: Moody's Gives Loss-Given-Default Ratings ---------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors this week, the rating agency confirmed its Ba3 Corporate Family Rating for Syniverse Technologies, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$42 Million Senior Secured Revolving Credit Facility due 2011 Ba3 Ba1 LGD2 24% US$240 Million Senior Secured First Lien Ba3 Ba1 LGD2 24% US$175 Million Senior Subordinated Note due 2013 B2 B1 LGD5 80% 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 alphanumeric 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%). Based in Tampa, Florida, Syniverse Technologies, Inc. -- http://www.syniverse.com/-- provides technology outsourcing to wireless telecommunications carriers. In Europe, the company maintains operations in Slovakia, Netherlands, France, Italy, and the United Kingdom. =========== N O R W A Y =========== AKER KVAERNER: Wins NOK100-Million Mooring Systems Contracts ------------------------------------------------------------ Aker Kvaerner has been awarded contracts for the delivery of advanced mooring systems with a total contract value of NOK200 million. The contracts comprise deliveries both to the offshore and marine industry. The work is undertaken by the Aker Kvaerner subsidiary Aker Kvaerner Pusnes in Arendal. The awards include delivery to the two advanced Aker Drilling H6e semi-submersible rigs to be built at Aker Kvaerner Stord and to five deepwater semi-submersible rigs to be built at Jurong's shipyard in Singapore. "Strong markets and competitive solutions have further given Aker Kvaerner Pusnes marine deck machinery orders for 60 new merchant vessels in the third quarter of 2006," Leif Haukom, president of Aker Kvaerner Pusnes, said. "Delivery will mainly be to yards in Korea and China. On yearly basis, Aker Kvaerner Pusnes supplies deck machinery to more than 160 ships worldwide. "These awards confirm Aker Kvaerner's strong position in the global market for advanced offshore products and technologies" Mads Andersen, Executive Vice President in Aker Kvaerner, said. Manufacturing of the equipment will take place in Europe and Asia. The delivery dates are scheduled from 2007 to 2009. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, is a leading global provider of engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. * * * As reported in TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. =========== R U S S I A =========== ALUMINIUM BUILDING: Samara Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Arbitration Court of Samara Region commenced bankruptcy supervision procedure on OJSC Aluminium Building Constructions. The case is docketed under Case No. A55-9997/2006. The Temporary Insolvency Manager is: A. Fomin Post User Box 161 Sretenskiy Avenue 5 107045 Moscow Region Russia The Debtor can be reached at: OJSC Aluminium Building Constructions Building 64 Alma-Atinskaya 29 443051 Samara Region Russia ANNINSKIY: Voronezh Court Names S. Khomin as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Voronezh Region appointed Mr. S. Khomin as Insolvency Manager for CJSC Combine Of Building Materials And Constructions Anninskiy (OGRN 1023600510438). He can be reached at: S. Khomin Post User Box 4 Post Office 63 394063 Voronezh Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14-4563/2006/135/27b. The Arbitration Court of Voronezh Region is located at: Room 606 Srednemoskovskaya Str. 77 Voronezh Region Russia The Debtor can be reached at: CJSC Combine of Building Materials and Constructions Anninskiy Vatutina Str. 194 Anna Voronezh Region Russia BUILDER CJSC: Court Names I. Borzov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. I. Borzov as Insolvency Manager for CJSC Builder. He can be reached at: I. Borzov Bagaeva Str. 17-207 153000 Ivanovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-11897/2006-27-576. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Builder Sovkhoznaya Str. 13-1 Sosnovskoye Nizhniy Novgorod Region Russia EAR CJSC: Altay Bankruptcy Hearing Slated for Feb. 19 ----------------------------------------------------- The Arbitration Court of Altay Region will convene at 2:30 p.m. on Feb. 19, 2007 to hear the bankruptcy supervision procedure on CJSC Ear. The case is docketed under Case No. A03-10881/06-B. The Temporary Insolvency Manager is: Y. Rodionov Post User Box 2153 Barnaul 656037 Altay Region Russia The Debtor can be reached at: CJSC Ear Smolenskoye Smolenskiy Region 659600 Altay Region Russia INVEST-TRANS-SERVICE: Court Names O. Feldman to Manage Assets ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. O. Feldman as Insolvency Manager for CJSC Invest-Trans-Service (TIN 7728195277). He can be reached at: O. Feldman Post User Box 53 109156 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-44459/06-44-968 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Invest-Trans-Service Krzhizhanovskogo Str. 6 117292 Moscow Region Russia LUKOIL OAO: Environment Ministry Probes Deeper into Violations -------------------------------------------------------------- The Ministry of Natural Resources of the Russian Federation has asked Federal Tax Service to divulge information on OAO Lukoil's tax payments for its oilfields, BBC News says. Oleg Mitvol, who heads a special commission tasked to uncover environmental violations by companies, requested for information on Lukoil's 398 licenses to "continue the probe into the activities of [the company's] subsidiaries." "We have requested the information on how Lukoil paid subsoil use and mineral resource taxes on these licences," Nikolai Gudkov, spokesman for the Environment Ministry, told BBC News. "The logic is if the taxes are not paid or delayed, it means that there are problems with fulfilling licensing agreements." As reported in TCR-Europe on Oct. 18, the Federal Service for the Oversight of Natural Resources has recommended the revocation of OAO Lukoil's production and extraction licenses following inspection of the company'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. Analysts, BBC reports, believed the probe could be an attempt to regain control of the projects, following the path that led to the collapse of OAO Yukos Oil. Natural Resources Minister Yury Trutnev, however, assured the probe is a "normal process" affecting "all oil companies, including LUKoil, Rosneft and TNK-BP." 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. LYUBIMSKOYE FUEL: Yaroslavl Bankruptcy Hearing Slated for Nov. 1 ---------------------------------------------------------------- The Arbitration Court of Yaroslavl Region will convene at 10:00 a.m. on Nov. 1 to hear the bankruptcy supervision procedure on OJSC Lyubimskoye Fuel Enterprise. The case is docketed under Case No. A82-5990/06-30-B/208. The Temporary Insolvency Manager is: D. Pelevin S-Shedrina Str. 30 150014 Yaroslavl Region Russia The Debtor can be reached at: OJSC Lyubimskoye Fuel Enterprise Krasnoarmeyskaya Str. 59 Lyubim Yaroslavl Region Russia METAL-INVEST-SERVICE: Court Names V. Gusev as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Mr. V. Gusev as Insolvency Manager for LLC Metal-Invest-Service (TIN 3442057626, KPP 344201001). He can be reached at: V. Gusev N. Kachuevskoy Str. 2D 400002 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-9112/06-s58. The Debtor can be reached at: LLC Metal-Invest-Service Lenina Pr. 92 400005 Volgograd Region Russia MILLING MACHINE: Court Names N. Aksenov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. N. Aksenov as Insolvency Manager for CJSC Factory of Milling Machine. He can be reached at: N. Aksenov Post User Box 3073 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-9836/06-B. The Debtor can be reached at: CJSC Factory of Milling Machine Galbshtadt Nemetskiy Natsionalnyj Region Altay Region Russia NORWOOD ENTERPRISE: Asset Sale Slated for October 30 ---------------------------------------------------- Sergey Borisovich Matyugin, Insolvency Manager for OJSC Norwood Enterprise, opened a public auction for the company's properties at 4:00 p.m. on Oct. 30 at: Office 56 Building 1 K. Marksa 31 Arkhangelsk Region Russia The starting price for the auctioned assets is RUR50 million. To participate, bidders have until noon on Oct. 27 to deposit an amount equivalent to five percent of the starting price to: IP Sergey Borisovich Matyugin Settlement Account 40802810300143013517 Arkhangelskiy OJSC Sobinbank Arkhangelsk Region BIK 041117724 Correspondent Account 30101810100000000724 and submit bidding documents to: Sergey Borisovich Matyugin, Insolvency Manager Office 56 Building 1 K. Marksa 31 Arkhangelsk Region Russia The Debtor can be reached at: Dvinskaya Str. 1 Severodvinsk Arkhangelsk Region Russia NOVGOROD-AVIA: Court Names A. Tsybin as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. A. Tsybin as Insolvency Manager for OJSC Novgorod-Avia (TIN 5321105340). He can be reached at: A. Tsybin Yuryevskoye Shosse 2 173007 Velikiy Novgorod Region Russia Tel./Fax: 88162-738-779 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A44-585/2006-4-K. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: OJSC Novgorod-Avia Yuryevskoye Shosse 2 173007 Velikiy Novgorod Region Russia Tel./Fax: 88162-738-779 OGK-5 JSC: Moody's Assigns Ba3 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service assigned a Ba3 corporate family rating to JSC OGK-5, a Russian thermal electricity generator. The rating outlook is stable. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, assigned a Aa3.ru national scale credit rating to the company. This is the first time that Moody's has assigned ratings to OGK-5. According to Moody's and Moody's Interfax, the Ba3 global scale rating reflects the company's global default and loss expectation, while the Aa3.ru NSR reflects the standing of the company's credit quality relative to its domestic peers. In assigning the ratings to OGK-5, Moody's has considered the company as a transitioning Government-Related Issuer (GRI), reflecting the Russian state's deep involvement both in the electricity sector and in the company, albeit indirectly through RAO UES of Russia, OGK-5's parent. In the course of the on-going restructuring of the electricity sector, OGK-5 is to be separated from RAO UES via a pro-rata spin-off, with the state's direct stake in the company to be reduced to 25% plus one share by the end of 2007. As the state is expected to decrease its stake and may finally dispose it in the consequent years, Moody's will closely monitor any changes to the company's GRI status. The company's Ba3 Corporate Family Rating reflect the combination of a Baseline Credit Assessment (BCA) of 14 (on the scale of 1 to 21 where 1 represents the equivalent risk of a Aaa, 2 of a Aa1 etc.), the Baa2 local currency rating of the Russian state, a high dependence and medium support. The overall credit enhancement applied to the BCA that results from the GRI status is limited to one notch. The BCA of 14 -- equivalent to a B1 rating for companies without state support - reflects: -- electricity consumption growth outpacing that of electricity supply in the company's target markets; -- sustainable market positions in the target regions of Central Russia and Urals; -- an acceptable financial profile; -- opportunity to increase revenues and margins via operations in the emerging competitive segment of the wholesale market, and -- to attract a large strategic investor in the course of the forthcoming privatization. At the same time, the company's BCA is constrained by: -- uncertainties associated with the restructuring process of the Russian energy sector; -- the company's sole focus on the power generation business; -- a relatively high level of outdated assets and large capex program; -- exposure to politically-sensitive regulated tariffs, operating cash flow volatility and possible shifts in debt burden; -- expected increase in exposure to rising fuel prices largely dominated by its key supplier, Gazprom; -- lack of a track record of standalone operations; and -- risks of operating in Russia's relatively vulnerable economic and regulatory environment, where OGK-5's financial performance largely depends on the balance it has to find between its position vis-a-vis the regulator on the one hand affecting its ability to increase tariffs and vis-a-vis Gazprom on the other hand affecting its operating expenses. The current BCA does not incorporate any change in the concept or the general time frame of the restructuring process, which could materially affect OGK-5's creditworthiness. High dependence reflects the fact that OGK-5 is a domestic electricity generator, which revenues are driven and will remain mainly driven in the mid-term by regulated tariffs. If the state were in a financial distress, this could seriously damage the company's business and its financial profile. Medium support reflects the state's involvement in the electricity sector, which is strategically important for the country, as well as OGK-5's position of a major generator in the Central Russia and Urals and of a pilot generation business to be separated from RAO UES and attract private investments. Moody's implies the medium-level support within a limited time horizon of about two years. Within this period, the state is likely to keep a stake in the company and/or largely keep the company under its wing, given the market liberalization at an initial stage, necessity to encourage private investors stepping in the under-invested Russian electricity generation sector, and power shortage expected in an increasing number of Russian regions. OGK-5 has sustainable positions in the in attractive markets, in particular in the Urals and in the central Russia, which is very close to the Moscow region. These regions are highly urbanized, well developed and wealthy, demonstrating a rapidly growing demand for electricity and are expected to face a growing electricity shortage in the near future. With no large overall capacity additions scheduled in these regions in the mid-term, the company's market positions remain sustainable. However, though the company's good market positions positively influence its business risk profile, Moody's regards the latter as high. This opinion takes into account OGK's position as a pure generator without its own distribution business. In the mid term, OGK-5's activities are expected to remain largely regulated and thus exposed to the politically sensitive tariff regulation in Russia, which has focused on protecting consumers from higher prices and therefore may allow some financial deterioration of the utility businesses. Regulated tariffs, though based on a cost-plus principle, do not provide for cost recovery including sufficient provision for depreciation for the Russian energy sector to be able to maintain or improve its asset quality. Cost pass-through of fuel price increases may be limited, creating a pressure on the company's margins. The company's ability to benefit from the electricity demand outpacing supply in its target markets will largely depend on the pace of the wholesale market liberalization. However, there are risks that the liberalization process may be slower than initially targeted and expected by the Russian authorities. The company's currently low debt and acceptable debt protection metrics are under pressure from its large capital expenditure programme up to 2010 of approximately RUR60 billion. About 40% of the capex is to support maintenance and modernization of the existing facilities. The other part is to finance new capacity construction to meet growing electricity demand. The company has some flexibility regarding its capex associated with new capacity additions. However, delays in investments in new capacity construction may damage OGK-5's market positions in the long run. Under a relatively conservative forecast of the market liberalization and free market prices, the company plans to finance a larger part of the program from its cash flow and proceeds from the upcoming IPO. Moody's expects OGK-5 to finance its growth while maintaining its total debt to EBITDA level below 3x. The rating outlook remains stable as Moody's expects the company to benefit from its sustainable positions in the Urals and Moscow region in the course of the market liberalization. The company's financial profile is expected to accommodate increasing debt if the company is successful in attracting funds though the planned IPO and improving margins by increasing operations in the free market segment. Should the market liberalization and on-going sector restructuring result in material improvements in the operating environment for OGK-5, this could have a positive impact on the ratings. Should the company establish a positive track record of increasing margins and cash flow generation ahead of its projections as the market is liberalized, this may also positively influence the rating. A negative shift in the regulatory regime affecting cash flows and the company's credit metrics will likely prompt Moody's to revisit the ratings. A negative pressure on the rating may result from the leverage exceeding the maximum target level of total debt to EBITDA ratio of 3x. Due to the combination of the high dependency and medium support attributed to OGK-5 under the GRI methodology, the company's Ba3 rating is largely driven by its BCA. Moody's also notes that a one notch upgrade or downgrade in the sovereign rating would not have an impact on OGK-5's ratings. Headquartered in the city of Moscow, JSC OGK-5 was the first wholesale generation company established as part of the restructuring of RAO UES of Russia, the Russian dominant integrated electricity group controlled by the state. OGK-5 has four fossil-fuel-fired plants with total installed capacity of 8.7GW located in the central part of Russia (close to the Moscow region), in the Urals and in the south of the country. The company generates more than 90% of its revenues from sales of its electricity output. Currently 87.67%-owned by RAO UES, OGK- 5 is a pilot entity that will be separated from RAO UES via a pro-rata spin-off and will see the state's stake reduced to 25% plus one share in 2007. Further decrease in that stake is expected in the consequent years. RUSSIAN CAR: Moody's Assigns (P)Ba2 Rating to Class C Notes ----------------------------------------------------------- Moody's Investors Service assigned provisional ratings to these classes of asset-backed notes issued by Russian Car Loans No. 1 S.A.: -- EUR[133.75] million Class A Senior Asset Backed Floating Rate Notes due 2017: (P)Baa1 -- EUR[35] million Class B Mezzanine Asset Backed Floating Rate Notes due 2017: (P)Baa1; and -- EUR[51.25] million Class C Junior Asset Backed Floating Rate Notes due 2017: (P)Ba2. Russian Car Loans No. 1 S.A. is Russian Standard Bank's second securitisation after Russian Consumer Finance No.1 S.A. that closed in April 2006. This transaction is backed by a portfolio of fixed rate, Rouble denominated auto-loans issued by Russian Standard Bank. During the three-year revolving period, additional pools may be sold into the structure if they meet certain strict eligibility criteria, including: -- Each loan must have made 2 payments or more; and -- Each loan must be current at the time of sale and must have not missed more than two payments in the previous six months. Unlike Russian Consumer Finance No.1 S.A., the current transaction benefits from a balance guaranteed swap, which removes any exposure to interest rate or exchange rate fluctuations. This is the second Russian ABS transaction Moody's has rated which includes such protection. Although the initial average yield on the assets is [13.5%], this could reduce as higher yielding assets pre-pay or default and lower yielding assets are substituted. The subordinated loan is dynamically sized to protect the structure from such spread compression and there is an early amortization event if the average net spread over the preceding three months falls below [3%]. The Russian legal and operating environment is still developing and has not yet reached stability. Moody's has reviewed Russian legal opinions in connection with this transaction and is satisfied that these risks are commensurate with the rating levels assigned to the notes. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings represent Moody's preliminary credit opinions only. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign definitive ratings to the Notes. A definitive rating may differ from a provisional rating. A rating is not a recommendation to purchase, sell or invest in any securities. The ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. 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. SERGIEVY GORKI: Vladimir Bankruptcy Hearing Slated for Dec. 19 -------------------------------------------------------------- The Arbitration Court of Vladimir Region will convene at 2:00 p.m. on Dec. 19 to hear the bankruptcy supervision procedure on LLC Flax Manufacture Sergievy Gorki. The case is docketed under Case No. A11-6868/2006-K1-432B. The Temporary Insolvency Manager is: R. Morgunov Post User Box 79 600000 Vladimir Region Russia The Arbitration Court of Vladimir Region is located at: Oktyabrskiy Pr. 14 600025 Vladimir Region Russia The Debtor can be reached at: LLC Flax Manufacture Sergievy Gorki Vyznikovskiy Region Vladimir Region Russia SIBROSS-INVEST: Court Names L. Prikhodko as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. L. Prikhodko as Insolvency Manager for CJSC Sibross-Invest. He can be reached at: L. Prikhodko Post User Box 3077 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-7680/06-B. The Debtor can be reached at: L. Prikhodko Post User Box 3077 Barnaul 656015 Altay Region Russia SUDISLAVSKIY DIARY: Court Starts Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Kostroma Region commenced bankruptcy supervision procedure on LLC Sudislavskiy Diary. The case is docketed under Case No. A31-3231/2006-12. The Temporary Insolvency Manager is: T. Litvinova Moskovskaya Str. 55 156000 Kostroma Region Russia Tel./Fax: 8(4942)53-46-62 The Debtor can be reached at: LLC Sudislavskiy Diary Zavolzhskaya Str. 1 Sudislavl Kostroma Region Russia TMK OAO: TMK Steel Limited Gains Full Ownership ----------------------------------------------- TMK Steel Ltd. has acquired Dalecone Ltd.'s 33% stake in Russian pipe manufacturer OAO TMK, RIA Novosti says. With the acquisition and consolidation, TMK became a wholly owned unit of TMK Steel, controlled by TMK CEO Dmitry Pumpyansky. TMK is also planning to launch an initial public offering of global depositary receipts and common shares both on Russian and international trading floors. According to RIA Novosti, Russian companies, which are thought to be heavily undercapitalized, have been selling or planning to sell their shares in the public to create much-needed funds to compete with foreign groups. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * As reported in TCR-Europe on Sept. 11, Moody's Investors Service assigned a B1 corporate family rating to TMK and a (P)B2 senior unsecured rating to the loan participation notes issued by TMK Capital S.A., guaranteed by the operating subsidiaries of TMK. Moody's said the outlook on both ratings is positive. On Sept. 9, the TCR-Europe reported that Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. USEC INC: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors last week, the rating agency confirmed its B1 Corporate Family Rating for USEC Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million 6.75% Senior Unsecured Notes due 2009 B2 B3 LGD5 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 alphanumeric 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%). VYATSKAYA: Kirov Court Names K. Volkov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Kirov Region appointed Mr. K. Volkov as Insolvency Manager for CJSC Vyatskaya Agro-Industrial Company. He can be reached at: K. Volkov Building 2 Nevzorovykh 89 603024 N. Novgorod Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-309/06-213/24. The Arbitration Court of Kirov Region is located at: K-Libknekhta Str. 102 610017 Kirov Region Russia The Debtor can be reached at: CJSC Vyatskaya Agro-Industrial Company Bolshevikov Str. 91 A Kirov Region Russia YUGRA-TRUST: Court Names V. Belonogov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Tyumen Region appointed Mr. V. Belonogov as Insolvency Manager for CJSC Yugra-Trust. He can be reached at: V. Belonogov Post User Box 57 Nefteyugansk-10 628310 Tyumen Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A75-6188/2006. The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: CJSC Yugra-Trust Nefteyuganskiy Region 628300 Tyumen Region Russia YUKOS OIL: Deutsche Bank Eyes Controlling Stake, Chairman Says -------------------------------------------------------------- Deutsche Bank is in talks about acquiring a controlling stake in OAO Yukos Oil Co. and redeeming the company's debts, Yukos chairman Viktor Geraschenko told Kommersant. Mr. Geraschenko confirmed reports that Deutsche Bank and its Russian subsidiary, Deutsche UFG, have been eyeing Yukos assets. He said that he received a letter from Deutsche UFG head Ilya Shcherbovich expressing the bank's interest in purchasing "Yukos's controlling stock" and "is ready to undertake" redeeming the company's debts, Kommersant relates. "We suggested [Deutsche Bank] address Group MENATEP director Tim Osborne, and gave all his contacts to them. I do not know whether any talks were held. Yet, amicable agreement is always possible," Mr. Gerashchenko said. According to the report, Mr. Gerashchenko said he does not know on whose behalf Deutsche Bank acts. Investment analysts speculate that both Gazprom and Rosneft have reasons to buy what was once Russia's largest oil producer's controlling stake and avoid the company's sell-out by redeeming its debts, Kommersant reports. Eduard Rebgun, Yukos bankruptcy manager, said no official offer has yet been received from Deutsche Bank. About Yukos Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On July 25, Yukos creditors voted to liquidate the oil firm after rejecting a management rescue plan, which valued the company's assets at about US$30 billion. This would have permitted Yukos to continue its operations and attempt to pay off US$18 billion in debts through asset sales. On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. The expected court ruling paves the way for the company's liquidation and auction. ===================================== S E R B I A & M O N T E N E G R O ===================================== TUBE CITY: 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 Metals & Mining sectors, the rating agency confirmed its B1 Corporate Family Rating for Tube City IMS Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$326.4 million Gtd. Sr. Secured First Lien Term Loan B B1 B1 LGD3 43% US$50 million Gtd. Sr. Secured Second Lien Term Loan B3 B3 LGD5 86% Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in 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 alphanumeric 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 Glassport, Pennsylvania, Tube City IMS Corp. provides raw materials procurement, scrap optimization, material handling and scrap management, equipment rentals, and machine shop/field services to the North American steel industry. The company has steel mills in Slovakia and Serbia, and an increasing global presence. U.S. STEEL: 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 last week, the rating agency confirmed its Ba1 Corporate Family Rating for United States Steel Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$348 million 10.75% Senior Unsecured Notes due 2008 Ba1 Ba1 LGD4 64% US$49 million 10% Senior Unsecured Quarterly Income Debt Securities due 2031 Ba1 Ba1 LGD4 64% US$378 million 9.75% Senior Unsecured Notes due 2010 Ba1 Ba1 LGD4 64% 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 alphanumeric 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 Delaware, United States Steel Corp. -- http://www.ussteel.com/-- through its domestic operations, is engaged in the production, sale and transportation of steel mill products, coke, and iron-bearing taconite pellets; the management of mineral resources; real estate development; and engineering and consulting services and, through its European operations, which include U. S. Steel Kosice, located in Slovakia, and U. S. Steel Balkan located in Serbia, in the production and sale of steel mill products. Certain business activities are conducted through joint ventures and partially owned companies. ============================= S L O V A K R E P U B L I C ============================= TUBE CITY: 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 Metals & Mining sectors, the rating agency confirmed its B1 Corporate Family Rating for Tube City IMS Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$326.4 million Gtd. Sr. Secured First Lien Term Loan B B1 B1 LGD3 43% US$50 million Gtd. Sr. Secured Second Lien Term Loan B3 B3 LGD5 86% Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in 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 alphanumeric 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 Glassport, Pennsylvania, Tube City IMS Corp. provides raw materials procurement, scrap optimization, material handling and scrap management, equipment rentals, and machine shop/field services to the North American steel industry. The company has steel mills in Slovakia and Serbia, and an increasing global presence. U.S. STEEL: 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 last week, the rating agency confirmed its Ba1 Corporate Family Rating for United States Steel Corp. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$348 million 10.75% Senior Unsecured Notes due 2008 Ba1 Ba1 LGD4 64% US$49 million 10% Senior Unsecured Quarterly Income Debt Securities due 2031 Ba1 Ba1 LGD4 64% US$378 million 9.75% Senior Unsecured Notes due 2010 Ba1 Ba1 LGD4 64% 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 alphanumeric 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 Delaware, United States Steel Corp. -- http://www.ussteel.com/-- through its domestic operations, is engaged in the production, sale and transportation of steel mill products, coke, and iron-bearing taconite pellets; the management of mineral resources; real estate development; and engineering and consulting services and, through its European operations, which include U. S. Steel Kosice, located in Slovakia, and U. S. Steel Balkan located in Serbia, in the production and sale of steel mill products. Certain business activities are conducted through joint ventures and partially owned companies. ========= S P A I N ========= ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Aspect Software Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$50 Million Senior Secured Revolving Credit Facility due 2010 B2 Ba3 LGD3 32% US$775 Million Senior Secured First Lien due 2011 B2 Ba3 LGD3 32% US$385 Million Senior Secured Second Lien due 2012 Caa1 Caa1 LGD5 85% 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 alphanumeric 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 Westford, Massachusetts, Aspect Software Inc. develops, markets, licenses and supports an end-to-end, integrated and unified suite of contact center software applications. In Europe, the company maintains operations in France, Germany, Spain, The Netherlands, and the United Kingdom. HARLAN SPRAGUE: 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 Healthcare Service and Distribution sectors, the rating agency confirmed its B2 Corporate Family Rating for Harlan Sprague Dawley 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 Dollar-Denominated Sr. Sec. Revolver due 2010 B2 B1 LGD3 33% Euro-Denominated Sr. Sec. Revolver due 2010 B2 B1 LGD3 33% First Lien Sec. Term Loan due 2011 B2 B1 LGD3 33% 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 alphanumeric 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 Indianapolis, Indiana, Harlan Sprague Dawley Inc. -- http://www.harlan.com-- is engaged in the commercial production and supply of animal models. In Europe it serves customers throughout the continent via their operations in Denmark, France, Germany, Italy, the Netherlands, Spain, Switzerland and the United Kingdom. Harlan now produces over 250 stocks and strains of laboratory animals. TELCORDIA TECHNOLOGIES: Moody's Gives Loss-Given-Default Ratings ---------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors last week, the rating agency confirmed its B1 Corporate Family Rating for Telcordia Technologies, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 Million Senior Secured Revolving Credit Facility due 2011 B1 Ba3 LGD3 31% US$570 Million Senior Secured First Lien due 2012 B1 Ba3 LGD3 31% US$300 Million Senior Subordinated Notes due 2013 B3 B3 LGD5 86% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric 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 Piscataway, New Jersey, Telcordia Technologies, Inc. -- http://www.telcordia.com/-- provides operations systems support software and network systems products for telecommunications providers. In Europe, the company maintains operations in France, Germany, Italy, Spain and the United Kingdom. =========== S W E D E N =========== EPICOR SOFTWARE: 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 U.S. Technology Software sectors, the rating agency confirmed its B2 Corporate Family Rating for Epicor Software Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 Million Senior Secured Revolving Credit Facility due 2009 B1 Ba3 LGD2 27% US$100 Million Senior Secured First Lien due 2012 B1 Ba3 LGD2 27% 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 alphanumeric 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 Irvine, California, Epicor Software Corporation is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide including Czech Republic, Finland, Germany, Lithuania, Sweden, and the United Kingdom. GOODYEAR TIRE: Labor Strike Cues S&P to Put Rating on Watch Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations. Goodyear has total debt (including the present value of operating leases and underfunded employee benefit liabilities) of about US$7 billion. About 15,000 employees at 14 plants in the U.S. and Canada went on strike on Oct. 5. The United Steel Workers (USW) represents the employees. Goodyear's contract with the USW expired on July 22 although negotiations for a new contract continued until early October. The company's main priorities for a new labor contract are to lower legacy costs, reduce its high cost footprint, and improve productivity, while the union is focused on preserving job security protections and employee benefits. Since the strike began, Goodyear has borrowed almost US$1 billion under a revolving credit facility to enhance liquidity should the strike persist. The company had about US$1.3 billion in cash before the start of the strike. Goodyear's liquidity should be more than adequate to allow the company to comfortably meet its cash requirements for at least the next several months. But the business and financial costs to the company will rise over time. Goodyear currently is able to meet most customer requirements through existing inventory, but as inventory is depleted, the company would experience shortages that could damage customer relationships. "Ultimately, we expect the two parties to reach an agreement that should help Goodyear to lower its burdensome cost position in North America. The ratings could be lowered, however, if it appears that the strike is likely to strain the company's credit profile for the near to medium term," said Standard & Poor's credit analyst Martin King. ===================== S W I T Z E R L A N D ===================== CONVERIUM AG: Moody's Reviews Baa1 Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service placed the Baa1 insurance financial strength rating of Converium AG and all related ratings as detailed below on review for possible upgrade. Commenting on its decision, Moody's said that Converium's announcement earlier [Tues]day that it had reached a definitive agreement to sell its North American operations to National Indemnity Company represents an important landmark on Converium's road to recovery. Completion of this transaction will materially reduce uncertainty relating to reserve adequacy, free up management time to focus on steering the Group's ongoing business, as well as improve the financial leverage and fixed charge coverage ratios. Moody's also said that profitability in the first half of 2006 was excellent, with combined ratio at 97.9% despite reduced premium volumes compared to prior years and hence a higher administration expense ratio. Moody's expects that the expense ratio will decline over the next 12 -- 18 months as the improvement in Converium's franchise will manifest itself in higher volumes of new business. The review will focus on the successful completion of the sale of North American operations and Converium's ability to achieve further improvement in its franchise through good business renewals at year-end, as well as to maintain strong levels of capitalisation and a conservative financial leverage profile, as evidenced by financial leverage ratio in the high teens. Moody's also expects the Group to report a combined ratio of less than 100% and ROE of 10% both across the reinsurance cycle and in 2006. The date of the preceding rating action was April 27 when the outlook on Converium's ratings was changed from negative to stable. Converium AG, based in Zurich, Switzerland, is the main operating company of Converium Holding AG, Zug, Switzerland. Converium Holding AG reported consolidated Gross Premiums Written of US$1,994.3 million in 2005 and shareholders' equity of US$1,796.1 million as of 30 June 2006. Ratings placed on review for possible upgrade: Converium AG * insurance financial strength rating of Baa1; Converium Rueckversicherung (Deutschland) AG * insurance financial strength rating of Baa1; and * US$200 million 8.25% guaranteed subordinated notes due December 2032 (callable in 2007) issued by Converium Finance S.A., a wholly owned subsidiary of Converium Holding AG -- subordinated debt rating of Ba1. CONVERIUM HOLDING: Inks US$295-Mln Sale Agreement With NICO ----------------------------------------------------------- Converium Holding AG has signed a definitive agreement to sell its North American operations to National Indemnity Co., a Berkshire Hathaway company, for US$295 million comprised of US$95 million in cash and US$200 million in assumption of debt. Converium has not provided any guarantee or indemnity in respect of the reserves of the North American operations. The transaction is subject to regulatory approvals and customary closing conditions. Inga Beale, Converium's Chief Executive Officer, said: "With this transaction we have successfully delivered on our promise to achieve finality regarding Converium's U.S. operations through a clean-cut sale. We can now fully concentrate on building Converium's future, with our business strategy focused on markets outside the U.S." Inga Beale continued: "I would like to thank the North American team for an excellent job in running-off and commuting a major portion of Converium's North American liabilities prior to today's announcement. Our North American colleagues have exceeded expectations both in terms of the pace and the profitability of our run-off operations." Upon the closing of the sale, Converium will reduce its exposure significantly as National Indemnity Company will assume all of the North American operations' reinsurance liabilities (US$1.06 billion as of June 30, 2006) as well as US$200 million of debt issued by Converium Holdings (North America) Inc. The sale will result in a decrease in shareholders' equity of US$135 million. Paolo De Martin, Converium's Chief Financial Officer, said: "Even after adjusting the June 30, 2006 shareholders' equity to US$1.66 billion to account for the sale, we maintain a strong financial position, while further de-risking our balance sheet. The clean-cut agreement to sell our North American operations meets a crucial condition for an improved financial strength rating." Converium will provide further details on the transaction on Nov. 7 when the Company reports on the financial results for the third quarter of 2006. About Converium Headquartered in Zug, Switzerland, Converium Holding AG -- http://www.converium.com/-- provides treaty and individual coverage for risks including accident and health, credit and surety, e-commerce, third party and professional liability, life, and special casualty. Converium employs about 600 people in 20 offices around the globe and is organized into four business segments: Standard Property & Casualty Reinsurance, Specialty Lines and Life & Health Reinsurance, which are based principally on ongoing global lines of business, as well as the Run-Off segment, which primarily comprises the business from Converium Reinsurance (North America) Inc., excluding the U.S. originated aviation business portfolio. * * * Following its publication of its 2005 year-end results, restated financial information for the periods 1998 to 2004, and for each quarter from March 31, 2003, to June 2005, Fitch Ratings affirmed Converium AG's Insurer Financial Strength BBB- rating and removed it from Rating Watch Negative on which it had been placed since Nov. 4, 2005. Fitch also affirmed other ratings within Converium group and also withdrawn them from RWN: a) Converium AG IFS affirmed at BBB-; b) Converium AG IDR affirmed at BBB-; c) Converium Insurance Limited affirmed at IFS BBB-; d) Converium Ruckversicherungs AG affirmed at IFS BBB-; e) Converium Holding AG IDR affirmed at BB; and f) Converium Finance S.A.'s USD 200 million subordinated debt due 2032 affirmed at BB+. CONVERIUM HOLDING: Moody's May Upgrade B2 Rating on Sale Deal ------------------------------------------------------------- Moody's Investors Service placed the B2 senior unsecured debt rating of Converium Holdings (North America) Inc. (CHNA) on review for possible upgrade following [Tues]day's announcement by its parent company, Converium Holding AG (Converium), that it will sell CHNA and its U.S. subsidiaries to National Indemnity Company, a subsidiary of Berkshire Hathaway Inc. Moody's has also placed the B2 insurance financial strength rating of Converium Reinsurance (North America) Inc. (CRNA), a subsidiary of CHNA, on review for possible upgrade. The review for possible upgrade will focus on the nature of Berkshire Hathaway's support for CHNA and its subsidiaries. Under the terms of the agreement, Berkshire Hathaway will inherit the debt obligations of CHNA, which consists of US$200 million, 7.125% unsecured senior notes due October 2023, albeit Berkshire Hathaway will not be providing an explicit guarantee for these securities. Future debt service at CHNA will continue to rely largely on the support provided by the parent organization, given that CRNA has lacked the ability to provide dividends to CHNA in the recent past and is unlikely to be able to do so in the foreseeable future. In this regard, Berkshire Hathaway, which has a long- term issuer rating of Aaa, is expected to afford bondholders and policyholders greater support than that afforded by Converium (subordinated debt rating of Ba1), given its stronger credit profile. Moody's decision to review the rating of CRNA for possible upgrade also acknowledges the progress that the company has made in running off and commuting its liabilities. Its NAIC risk-based capital ratio has improved to 303% at year-end 2005 compared to 162% at year-end 2004. Further, the ratio of its loss reserves-to-surplus has declined to 1.99 at mid-year 2006 compared to 5.07 at year-end 2004. However, the pace of commutations will likely slow under Berkshire's ownership, given that Berkshire will have less incentive to commute claims. The sale is expected to close by year-end 2006, at which time Moody's expects to conclude the review for possible upgrade based on the level of support that is to be expected from Berkshire Hathaway and the risk-adjusted capitalization of CHNA's subsidiaries. The last rating action on CHNA occurred on April 27 when Moody's changed the outlook on ratings of Converium AG and affiliates to stable from negative. The following ratings have been placed on review for possible upgrade: * US$200 million 7.125% unsecured senior notes due October 2023, senior debt rating of B2; * Converium Reinsurance (North America) Inc., insurance financial strength rating of B2. Converium Holdings (North America) Inc. is the U.S. intermediate holding company of Converium AG, based in Zurich, Switzerland. Converium AG is the main operating company of Converium Holding AG, Zug, Switzerland. HEXION SPECIALTY: Moody's Rates New Second Lien Notes at B3 ----------------------------------------------------------- Moody's Investors Service assigned B3 ratings to the new guaranteed senior secured second lien notes due 2014 of Hexion Specialty Chemicals Inc. The company expects to issue roughly US$825 million of notes split (55/45) between fixed and floating rate notes. The new notes will be used to refinance roughly US$625 million of existing second lien notes and partially fund a US$500 million dividend to existing shareholders. A US$375 million increase in the company's existing guaranteed senior secured first lien term loan to US$2 billion, rated Ba3, will fund the remainder of the extraordinary dividend. Moody's also affirmed Hexion's other long-term debt ratings and its SGL-2 speculative grade liquidity rating. As a result of this refinancing, the LGD assessment rates have changed. The outlook is stable and the ratings on the existing second lien notes will be withdrawn upon successful completion of the refinancing. New ratings assigned: Hexion Specialty Chemicals Inc. -- Floating Rate Gtd Second Lien Sr Sec Notes due 2014: B3, LGD5, 75% -- Fixed Rate Gtd Second Lien Sr Sec Notes due 2014: B3, LGD5, 75% Ratings affirmed with revised LGD rates: -- US$225 million Gtd Sr Sec Revolving Credit Facility due 5/2011: Ba3, LGD2, 24% from 29% -- US$50 million Gtd Sr Sec Letter of Credit Facility due 5/2011: Ba3, LGD2, 24% from 29% -- US$1,625 million Gtd Sr Sec Term Loan due 5/2013: Ba3, LGD2, 24% from 29%* -- US$300 million Flt Rate Gtd Second Lien Sr Sec Notes due 7/2010: B3, LGD5, 75% from 77%** -- US$325 million 9.0% Gtd Second Lien Sr Sec Notes due 7/2014: B3, LGD5, 75% from 77%** -- US$34 million Pollution Control Revenue Bonds Series 1992 due 12/2009: B3, LGD5, 75% from 77% Ratings affirmed: Hexion Specialty Chemicals Inc. -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 -- US$114.8 million 9.2% Sr. Unsec Debentures due 3/2021: Caa1, LGD6, 94% -- US$246.8 million 7.875% Sr. Unsec Notes due 2/2023: Caa1, LGD6, 94% -- US$78 million 8.375% S.F. Sr. Unsec Debentures due 4/2016: Caa1, LGD6, 94% * Facility size will increase to US$2 billion upon successful completion of the refinancing ** Ratings will be withdrawn is the tender offer is successfully completed; if any stub bonds remain, the rating could be lowered by more than one notch The B3 ratings on Hexion's second lien notes reflect: -- elevated leverage on a historical EBITDA basis, -- the expectation that cash flows will be reduced by pension contributions and ongoing restructuring costs, -- integration risk due to the pace of additional tuck-in acquisitions, and -- concern over financial metrics in the trough of the cycle. Moody's notes that if the company were to significantly increase the size of the secured first lien term loan, as permitted under the indenture for the secured second lien notes, this could cause a downgrade of the ratings on the second lien notes. Hexion has significant pension liabilities and modest litigation exposure, which is unusual for a highly leveraged company. The ratings benefit from: -- the company's size, -- product diversity, -- global operations, and -- the anticipation of significant additional synergies The management expects to generate additional synergies of more than US$100 million from the original merger and subsequent acquisitions. The company's metrics would map to the cusp of the "Ba" and "B" rating category using Moody's Chemical Industry ratings methodology, versus the B2 corporate family ratings. However, given the limited historical data, the pro forma averages may not adequately reflect the company's through-the-cycle performance. The stable outlook reflects the continuing solid operating environment for thermoset resins that has resulted in substantial earnings growth over the past year and the expectation that trailing debt to EBITDA (excluding one-time extraordinary items) will remain elevated at over 5x and free cash flow to debt (excluding restructuring costs) will remain below 5% over the next two years. Moody's believes that 2006 EBITDA will be in excess of US$525 million excluding pro forma adjustments for ongoing acquisitions and planned synergies. Hexion Specialty Chemicals, Inc., headquartered in Columbus, Ohio is a leading producer of commodities such as formaldehyde, bisphenol A and epichlorhydrin, as well as formaldehyde-based thermoset resins, epoxy resins, and versatic acid and its derivatives. The company is also a supplier of specialty resins for inks and specialty coatings sold to a very diverse customer base. Hexion was formed from the merger of Borden Chemicals Inc., Resolution Performance Products LLC, Resolution Specialty Material LLC and the Bakelite Group. The company reported sales of US$4.8 billion on a LTM basis ending June 30, 2006. TOWN SPORTS: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer services sector, the rating agency confirmed its B2 Corporate Family Rating for Town Sports International Holdings, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these bond debt obligations: Issuer: Town Sports International Holdings, Inc., Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$138 million Sr. Unsec. discount notes due 2014 Caa2 Caa1 LGD5 89% Issuer: Town Sports International, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75 million Sec. Revolver due 2008 B1 Ba2 LGD1 3% US$170 million 9.63% Sr. Unsec. notes due 2011 B2 B2 LGD3 44% 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 alphanumeric 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 New York, U.S.A., Town Sports International Holdings, Inc. -- http://www.mysportsclubs.com/-- owns and operates fitness clubs in the northeast and Mid-Atlantic regions of the United States, and in Switzerland. =========== T U R K E Y =========== AKBANK T.A.S.: Citigroup to Buy 20% Stake for US$3.1 Billion ------------------------------------------------------------ Citigroup and Akbank T.A.S. have signed a definitive agreement under which Citigroup will purchase a 20 percent equity position in Akbank for approximately US$3.1 billion, at a price of YTL9.50 per 100 shares. Sabanci Holding, a 34 percent owner of Akbank shares, together with its subsidiaries, which own an additional block of shares in Akbank, have granted Citigroup a right of first refusal or first offer over the sale of any of their Akbank shares in the future. In addition, Citigroup has granted a right of first refusal or first offer over its Akbank shares to Sabanci. Subject to a number of exceptions, including purchases from Sabanci Holding and its subsidiaries, Citigroup has agreed not to acquire additional shares in Akbank. The transaction will be accretive to Citigroup's earnings in year one. The agreement also establishes a strategic collaboration between Citigroup and Akbank to pursue new commercial activities, referral arrangements and joint ventures and to share certain expertise and technology. The terms also grant Citigroup the right to appoint one non-executive director to Akbank's nine- person Board, and the Sabanci Group the right to appoint one non-executive director to the Board of Citigroup's Turkey subsidiary. "The Sabancis are one of the most highly respected and leading business families in Turkey. Akbank is an ideal partner for Citigroup; it is a premier institution in the fast growing and dynamic Turkish market, led by a highly skilled management team that has achieved a superior record of performance," said Charles O. Prince, Citigroup Chairman and Chief Executive Officer. "What made this transaction particularly attractive is our strategic collaboration, which provides opportunities to broaden our international distribution capabilities and extend the availability of world-class financial products and services to individuals and institutions." "This alliance brings together the most valuable financial institutions in the world and in Turkey, in a long-term strategic partnership. We strongly believe that this alliance will solidify Akbank's leading position in the rapidly growing Turkish Banking Sector. We look forward to the strategic synergies this partnership with Citigroup will bring to further our business objectives and growth aspirations," said Erol Sabanci, Chairman of the Board of Akbank. "Turkey has great strategic importance and financial prospects for Citigroup," said Sir Win Bischoff, Chairman, Citigroup Europe. "Our existing operations allied to a significant stake in Akbank, a pre-eminent financial institution with excellent management and an outstanding reputation, will allow us to strengthen and accelerate our position in this vital market." Zafer Kurtul, Chief Executive Officer of Akbank added: "In the last five years Akbank has implemented a very successful change program and consolidated its leading position in the Turkish Banking Sector. As Turkey is becoming an increasingly attractive market for financial institutions, we anticipate that with Citigroup's contribution, Akbank will enter a new era of expansion and growth." Citigroup will obtain its shares in Akbank through: (a) the purchase of 28 billion shares from Sabanci family members and Sabanci Holding subsidiaries at YTL9.50 per 100 shares; and (b) the issuance of 20 billion new Akbank shares at the same price through a reserved capital increase in favor of Citigroup. The transaction, subject to shareholder and regulatory approvals, is expected to close in 60-90 days. With its widely recognized strong brand name, Akbank currently has 674 branches and 1,551 ATMs and enjoys the number one position in auto and housing loans, the number two position in commercial loans and the number three position in deposits. Approximately 65 percent of Akbank's revenues in the first half of 2006 came from its retail bank and thirteen percent of its revenues derive from its commercial and corporate bank. Citigroup has had operations in Turkey since 1975 and has more than 2,000 employees on the ground serving corporate, commercial and retail clients through 47 branches and 68 ATMs. Citigroup is currently the 19th largest bank in Turkey by assets with approximately US$2.1 billion in assets and US$1.6 billion in deposits. About Citigroup Citigroup (NYSE: C) -- http://www.citigroup.com/-- has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. About Akbank Headquartered in Istanbul, Turkey, Akbank T.A.S. -- http://www.akbank.com/-- offers a wide range of retail, commercial, corporate, private banking, international trade finance and capital markets services. Akbank is a premier, full-service retail, commercial, corporate and private bank in Turkey, with assets of US$35.8 billion, loans of US$17.7 billion and a deposit base of US$22.7 billion. It is the third largest bank by assets and the most profitable banking institution in the country. * * * As reported in TCR-Europe on July 6, Fitch Ratings affirmed Akbank T.A.S.' foreign currency Issuer Default rating at BB- and local currency IDR at BB+. The Outlook is Positive. At the same time, the agency affirmed the Short-term foreign and local currency ratings at B, Individual rating at C, Support rating at 4 and National Long-term rating at AA. The Outlook on the National rating is Stable. IMAX CORP: Moody's Assigns LGD4 Rating to 9-5/8% Senior Notes ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Gaming, Lodging & Leisure sector, the rating agency confirmed IMAX Corp. 's B3 Corporate Family Rating. Moody's also downgraded the Company's probability-of-default rating on its 9-5/8% Senior Notes due 2010 to Caa1 from B3. Additionally, Moody's assigned an LGD4 rating to these notes, suggesting noteholders will experience a 58% loss in the event of a default. Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). IMAX Corporation -- http://www.imax.com/-- founded in 1967 and headquartered jointly in New York City and Toronto, Canada, is an entertainment technology company, with particular emphasis on film and digital imaging technologies including 3D, post- production, and digital projection. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. The IMAX Theatre Network currently consists of more than 270 IMAX affiliated theatres in 38 countries including Bulgaria, Czech Republic, Denmark, France, Germany, Italy, The Netherlands, Poland, Russia, Spain, Sweden, Switzerland, Turkey and the United Kingdom. ============= U K R A I N E ============= ALFA TELEKOM: Court Names Svitlana Bikova as Insolvency Manager --------------------------------------------------------------- The Economic Court of Sevastopol appointed Svitlana Bikova as Liquidator/Insolvency Manager for LLC Alfa Telekom (code EDRPOU 30889475). She can be reached at: Svitlana Bikova V. Kuchera Str. 13/6 Sevastopol AR Krym Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 7. The case is docketed under Case No. 5/048. The Economic Court of Sevastopol is located at: Pavlichenko Str. 5 Sevastopol 99011 AR Krym Region Ukraine The Debtor can be reached at: LLC Alfa Telekom Shosta Basionna Str. 46/612 Sevastopol AR Krym Region Ukraine MAYORSKIJ REINFORCED: Court Names I. Strashnov as Liquidator ------------------------------------------------------------ The Economic Court of Donetsk Region appointed Mr. I. Strashnov as Liquidator/Insolvency Manager for Enterprise Mayorskij Reinforced Metal Plant (code EDRPOU 23117325). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7. The case is docketed under Case No. 42/159 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: Enterprise Mayorskij Reinforced Metal Plant Miru Str. 42 Gorlivka Donetsk Region Ukraine PETROVSKE REPAIR-TRANSPORT: A. Vinnik to Liquidate Assets --------------------------------------------------------- The Economic Court of Harkiv Region appointed Mr. A. Vinnik as Liquidator/Insolvency Manager for OJSC Petrovske Repair- Transport Enterprise (code EDRPOU 00909549). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. B-39/98-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: OJSC Petrovske Repair-Transport Enterprise Druzhbi Str. 19 Petrovske Balakliya District Harkiv Region Ukraine SOBORNIJ: Herson Court Names Mr. Kosovskij as Liquidator -------------------------------------------------------- The Economic Court of Herson Region appointed Mr. V. Kosovskij as Liquidator/Insolvency Manager for LLC Trade House Sobornij (code EDRPOU 31653210). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 7. The case is docketed under Case No. 6/160-B-06. The Economic Court of Herson Region is located at: Gorkij Str. 18 73000 Herson Region Ukraine The Debtor can be reached at: LLC Trade House Sobornij Perekopska Str. 153/27. Herson Region Ukraine VITREN: Donetsk Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on LLC Vitren (code EDRPOU 31906150) on July 26. The case is docketed under Case No. 27/125 B. The Temporary Insolvency Manager is: Ivan Popov Tayozhna Str. 1 Makiyivka 86123 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Vitren Lati Str. 103 Snizhne 86500 Donetsk Region Ukraine VSEUKRAINSKY AKTSIONERNY: Fitch Assigns B- Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings assigned Ukraine-based Vseukrainsky Aktsionerny Bank's ratings of Issuer Default B- with Stable Outlook, Short- term B, Support 5 and Individula D/E. The ratings reflect VABank's small size by international standards, risks associated with rapid loan book growth and high concentrations on both sides of the balance sheet as well as significant liquidity risk exposure. The ratings also acknowledge the bank's currently reasonable asset quality and capitalization. Increasing operating costs, driven by retail franchise and network expansion, have weighed heavily on VABank's bottom line profitability. This resulted in zero profits during H106. Fitch expects the bank to stay marginally profitable before it manages to build up its retail franchise and capture some of the market's upside potential. A successful franchise expansion, accompanied by declining business concentration, may put an upward pressure on the ratings. Downward pressure on the ratings might arise from asset quality problems driven by rapid loan growth and/or potential liquidity shortfalls. VABank is a medium-sized universal bank holding a small 1.3% of system assets and operating through a network of 110 outlets in Ukraine. TBIF, a Dutch investment company with active operations in financial services sector across Eastern Europe and Russia, completed its 48.65% acquisition in H106. Sergey Maximov, a Russian entrepreneur and members of his family ultimately control another 48.65%. Currently TBIF controls half of the supervisory board, has its own representative in the headquarter-based credit committee with veto right and asset liability commission. It also plays an active role in developing the risk management and treasury management functions at the bank. YUZHSPECEXPORT LLC: Court Names V. Kosovskij V. as Liquidator ------------------------------------------------------------- The Economic Court of Herson Region appointed Mr. V. Kosovskij V. as Liquidator/Insolvency Manager for LLC Yuzhspecexport (code EDRPOU 24961081). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 5. The case is docketed under Case No. 6/166-B-06. The Economic Court of Herson Region is located at: Gorkij Str. 18 73000 Herson Region Ukraine The Debtor can be reached at: LLC Yuzhspecexport Illich Str. 78/19 Herson Region Ukraine ZHVANETS REPAIR-TRANSPORT: Sergij Shishkin to Manage Assets ----------------------------------------------------------- The Economic Court of Hmelnitskij Region appointed Sergij Shishkin as Liquidator/Insolvency Manager for OJSC Zhvanets Repair-Transport Enterprise (code EDRPOU 03079054). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 7. The case is docketed under Case No. 13/105-B. The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: OJSC Zhvanets Repair-Transport Enterprise Zhvanets Kamyanets-Podilskij District Hmelnitskij Region Ukraine =========================== U N I T E D K I N G D O M =========================== ACCESS DEVICES: For Sale as a Going Concern ------------------------------------------- R. W. L. Horton, A. Murphy and R. Tulloch, the Joint Administrators of Access Devices Digital Limited, offer the business and assets of the company for sale as a going concern Features: -- research-and-development-led technology company, designing and supplying digital television equipment for Digital Terrestrial Broadcast Television (DVB-T), in the business- to-business market; -- operating from leasehold premises in Ealing, London; -- diverse product range, including basic DVB-T set-top boxes, set-top boxes with Digital Video Recorders (DVR) and PCMCIA cards; -- products sold across the U.K. and European markets for large global brands and leading U.K. and European retailers; and -- sales revenues of approximately GBP11 million in 2005. Inquiries can be addressed to: Darren Fanthorpe or Alexandra Morales Smith & Williamson Limited No.1 Bishops Wharf Walnut Tree Close Guildford Surrey GU1 4RA United Kingdom Tel: 01483 407 100 Fax: 01483 407 187 E-mail: df10@smith.williamson.co.uk avm2@smith.williamson.co.uk Smith & Williamson -- http://www.smith.williamson.co.uk/-- provide investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. ALLEGHENY TECHNOLOGIES: Moody's Gives 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 last week, the rating agency confirmed its Ba2 Corporate Family Rating for Allegheny Technologies Inc. and its B1 rating on the company's US$300 million issue of 8.375% senior unsecured notes due 2011. Moody's also assigned an LGD6 rating to those bonds, suggesting noteholders will experience a 90% loss in the event of a default. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on Allegheny Ludlum Corporation's and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 Million Gtd. Debentures due 2025 Ba2 Ba2 LGD4 53% 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 alphanumeric 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 Pittsburgh, Pennsylvania, Allegheny Technologies Inc. -- http://www.alleghenytechnologies.com/-- is a specialty stainless steel and alloy producer. The company has international locations in India, France, Germany, the United Kingdom, Australia, Korea, Singapore, and Malaysia, among others. AMARO PROFESSIONAL: Brings In KPMG to Administer Assets ------------------------------------------------------- Mark Granville Firmin and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of Amaro Professional Distribution Ltd. (Company Number 04500498) on Oct. 4. 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. Headquartered in Gateshead, United Kingdom, Amaro Professional Distribution Ltd. distributes professional brochures and leaflets. ASCOT BLACK: Moody's Rates Class E Credit Default Swap at (P)Ba2 ---------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to six classes of credit default swaps to be entered into by Lloyd's TSB and the respective credit protection sellers in relation to the Ascot Black CLO transaction: -- GBP866,500,000 Senior Credit Default Swap: (P) Aaa; -- GBP28,000,000 Class A Credit Default Swap: (P) Aaa; -- GBP30,500,000 Class B Credit Default Swap: (P) Aa2; -- GBP29,500,000 Class C Credit Default Swap: (P) A2; -- GBP13,000,000 Class D Credit Default Swap: (P) Baa2; and -- GBP22,000,000 Class E Credit Default Swap: (P) Ba2. Moody's has not assigned a rating to the threshold amount. In this transaction LTSB is buying credit protection on a reference portfolio of GBP1 billion consisting of loans granted to small and medium sized clients of LTSB in the U.K. LTSB enters into six classes of credit default swaps with the respective credit default swap counterparties as credit protection sellers. The senior credit default swap and the class A to class E swaps benefit from a threshold amount and a synthetic excess spread feature. Loss allocation is done in reverse sequential order starting with the threshold amount, which is replenished on the annual excess spread payment dates by synthetic excess spread after the loss allocation has taken place. The reference portfolio can be replenished until and including October 2012, subject to certain portfolio criteria and certain stop replenishment triggers not being breached. After the replenishment period, the notional amount reduction on the credit default swaps is done on a pro rata basis as long as the stop pro rata trigger is not breached -- thereafter the notional amount reduction of the credit default swaps is done in full sequential order. According to Moody's the ratings take account of, among other factors: -- The senior credit default swap as well as the class A to class E swaps benefit from the subordination of the respective lower tranches and a synthetic excess spread feature is providing additional credit enhancement to the rated credit default swaps. -- Moody's was not provided with collateral data on the reference portfolio. Additionally, no hard minimum collateralization ratio must be fulfilled throughout the revolving period as a condition to replenish. Restrictions on the LTSB expected loss severity as well as a haircut on the recovery rate assumption in the modeling partially mitigate these weaknesses. -- The reference portfolio can be replenished until October 2012. The additional loss potential stemming from the replenishment of the portfolio is partially mitigated by the inclusion of stop replenishment triggers and eligibility criteria. -- The realized loss definition includes interest accrued in addition to principal losses, which increases the potential credit protection amount to be paid by the credit default swap counterparties. This wider loss definition is incorporated into Moody's analysis as the loss/recovery data analysed by Moody's include the accrued interest. 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 endeavor to assign definitive ratings to the credit default swaps. 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 of the credit default swaps. 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. Moody's will monitor this transaction on an ongoing basis. ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Aspect Software Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$50 Million Senior Secured Revolving Credit Facility due 2010 B2 Ba3 LGD3 32% US$775 Million Senior Secured First Lien due 2011 B2 Ba3 LGD3 32% US$385 Million Senior Secured Second Lien due 2012 Caa1 Caa1 LGD5 85% 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 alphanumeric 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 Westford, Massachusetts, Aspect Software Inc. develops, markets, licenses and supports an end-to-end, integrated and unified suite of contact center software applications. In Europe, the company maintains operations in France, Germany, Spain, The Netherlands, and the United Kingdom. BLIGHTS BUILDERS: Brings In Administrators from Bishop Fleming -------------------------------------------------------------- J. A. O'Sullivan and S. J. Talby of Bishop Fleming were appointed joint administrators of Blights Builders Ltd. (Company Number 4813957) on Oct. 2. 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. Blights Builders Ltd. can be reached at: 13 Silver Street Barnstaple Devon EX32 8HR United Kingdom Tel: 01392 278436 BRITISH AIRWAYS: Launches Competition to Address Pension Deficit ---------------------------------------------------------------- British Airways Plc has launched a competition for new long-haul aircraft by issuing tender documents to aircraft and engine manufacturers. The competition, called a request for proposal (RFP), is the first step in a lengthy process before the airline makes a decision on fleet growth and replacement for the next decade. Airbus and Boeing, and engine manufacturers, Engine Alliance, General Electric and Rolls Royce plus other key component suppliers, have been invited to bid. "For the past four years, we have grown capacity by using our aircraft more efficiently," British Airways' chief executive, Willie Walsh, said. "In order to continue to grow our long-haul business we now need additional long-haul aircraft. We remain committed to generating an economic return for our shareholders. "Launching the competition highlights the need for us to address our GBP2.1 billion pension deficit. It is a major blocker to growth and investment in our business but I am confident we will resolve it. "With a combination of firm orders and options, we are planning for both growth and fleet replacement into the next decade. Environmental performance will be one of the key criteria in our choice ensuring greater fuel efficiency, reduced noise and emissions. The first aircraft to be replaced are the 20 Boeing 747s and 14 Boeing 767s, which will be around 25 years old," he said. Subject to the outcome of the RFP competition, orders are expected to be placed during next year. The aircraft being considered for the airline's long-haul fleet are the Airbus A330, A350, A380 and Boeing 787, B777 and B747-8. About the Company Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. CAIRNSERVE GROUP: BDO Stoy Hayward Selling Fast Food Operator ------------------------------------------------------------- Shay Bannon and Tony Nygate, Joint Administrators of the Cairnserve Group, are offering to sell the business and assets of the fast food operator. The assets for sale include over 60 restaurants nationwide, certain leasehold properties and an experienced management team. It reports a current annual turnover of GBP31.8 million and a current annual EBITDA of GBP880,000. Inquiries can be addressed to: Mark Longbottom BDO Stoy Hayward LLP 8 Baker Street London W1U 3LL United Kingdom Tel: 020 7486 5888 Fax: 020 7487 3686 Tel: 020 7893 2279 E-mail: mark.longbottom@bdo.co.uk BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. CHALLENGE BUSINESS: Grant Thornton Selling Yachting Firm -------------------------------------------------------- Nigel Morrison and Richard Hawes, in their capacity as joint administrators for The Challenge Business International Limited, are offering to sell the company's business and assets. The assets for sale features: -- widely recognized and respected yachting business; -- large corporate blue chip client base; -- fleet of 67' and 72' ocean going yachts; -- a portfolio of sailing events; -- High demand adventure sailing program; -- servicing facility for large yachts in Plymouth; and -- runs and participates in a number of other yachting events such as the Round Britain and Ireland Challenge, Transat Challenge, entering yachts in the Rolex Fastnet Race, and organizing corporate yachting events. Inquiries can be addressed to: Sarah Gould Grant Thornton U.K. LLP Lees House 21 Dyke Road Brighton BN1 3GD United Kingdom Tel: 0870 991 2454, Fax: 0870 991 2454 E-mail: sarah.gould@gtuk.com Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. CORUS GROUP: Confirms Tata Steel's GBP4.1-Bln Takeover Proposal -------------------------------------------------------------- Corus Group Plc confirmed a GBP4.1 billion approach from India's Tata Steel, BBC reports. Corus said Tata offered to acquire the company for 455p per share, noting that the Indian group has yet to submit a full offer. Corus and Tata are currently holding talks over the matter, the company said in a statement. The offer, BBC notes, is below Corus' share price. Corus shares were trading a 479 pence apiece Monday in London. Analysts had said that Tata has to cough out up to GBP5.6 billion, or 580 pence per share, to acquire Corus, BBC reports. As reported in TCR-Europe on Oct. 11, Tata Steel was set to launch a GBP5 billion takeover bid for Corus Group. According to The Times, speculations on the possible takeover bid rose after Tata told the Stock Exchange that it was considering a number of takeover opportunities, including Corus. It is also believed that Tata may choose Corus's option of a joint venture rather than a full takeover. Tata had prepared a GBP3.5 billion financing deal to make the acquisition, BBC cited the Sunday Telegraph. If the deal materializes, a merger would form the world's fift largest steelmaker. About Tata Steel Headquartered in Mumbai, India, Tata Steel -- http://www.tatasteel.com/-- is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). It is a small steel producer by global standards, but has the backing of the giant Tata Group, one of India's largest companies with interests as diverse as carmaking, communications, tea and oil. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported by TCR-Europe on June 21, Standard & Poor's removed Corus Group PLC's CreditWatch and raised its long-term corporate credit rating to 'BB' from 'BB-', reflecting the group's improved financial risk profile. S&P said the Outlook is stable. Fitch Ratings changed Corus Group PLC's Outlook to Positive from Stable and affirmed the Issuer Default Rating at BB- following the company's announcement of its 2005 results and plan to dispose its aluminium business for EUR826 million. Corus' affirmed debt instruments include: a) Corus Group PLC EUR800 mln 7.5% senior notes B+; b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+; c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+; and d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+. As reported in TCR-Europe on May 11, Moody's Investors Service upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. ELONEX LIMITED: Taps Vantis to Administer Assets ------------------------------------------------ Geoffrey Paul Rowley and Simon Elliott Glyn of Vantis were appointed joint administrators of Elonex Ltd. (Company Number 05854738) on Oct. 2. Headquartered in West Sussex, Vantis PLC -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Elonex Ltd. can be reached at: 2 Apsley Way Brent London NW2 7LF United Kingdom Tel: 020 8452 4444 Fax: 020 8452 6422 EURACH PARC: Brings In KPMG as Joint Administrators --------------------------------------------------- Dave Costley-Wood and Brian Green of KPMG LLP were appointed joint administrators of Eurach Parc Cyf (Company Number 04570301) on Oct. 2. 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. Headquartered in Gaerwen, United Kingdom, Eurach Parc Cyf develops and sells real estate. EUROSAIL 2006-2: Fitch Gives B Rating on GBP1.538 Mln Notes ----------------------------------------------------------- Fitch Ratings assigned Eurosail 2006-2 BL Plc's GBP615 million- equivalent mortgage-backed floating-rate notes final ratings: -- GBP equivalent 258,300,000 Class A1, due 2030: AAA; -- GBP equivalent 269,062,500 Class A2, due 2044: AAA; -- GBP equivalent 27,675,000 Class B1, due 2044: AA; -- GBP equivalent 27,675,000 Class C1, due 2044: A; -- GBP equivalent 23,370,000 Class D1, due 2044: BBB; -- GBP equivalent 7,380,000 Class E1c, due 2044: BB; and -- GBP equivalent 1,538,000 Class F1c, due 2044: B. This transaction is a securitization of sub-prime and near prime residential mortgages originated and located in the U.K. The ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of Preferred Mortgage Limited, the servicing capabilities of Preferred, rated RPS3+UK (Prime) and RPS3+UK (Subprime) for primary servicing and RSS3+UK for special servicing, the servicing capabilities of Capstone, rated RPS2+UK and RPS2+UK, standby servicer Homeloan Management Limited rated RPS2+UK (Prime and Subprime) and the transaction's sound legal structure. Credit enhancement for the Class A notes is initially 14.35%, provided by the subordination of the Class B1 notes (4.50%), the Class C1 notes (4.50%), the Class D1 notes (3.80%), the Class E notes (1.20%), the Class F1 notes (0.25%) and an initial and target reserve fund of 0.10%. EUROTUNNEL GROUP: Sets Oct. 31 as Target Date for Agreement ----------------------------------------------------------- Negotiations between Eurotunnel Group and its creditor committees are moving forward as they set to come up with an agreement before Oct. 31, Marcel Michelson writes for Reuters citing unidentified sources. Eurotunnel has established Oct. 31 as the target date because Nov. 1 is a public holiday in Europe. The company's administrators have until Nov. 2 to come up with a restructuring plan. "There is a general will to arrive at a solution, and talks are being stepped up with an aim to get to a deal before the end of the month," Reuters quoted a source close to the matter as saying. According to Reuters, Eurotunnel spokeswoman Mady Chabrier disclosed meetings had recently been resumed between the various parties and talks were taking place. The company held good hopes to be able to arrive at a deal, she said. "[Chairman and CEO Jacques] Jacques Gounon, assisted by the administrators, is talking to the various groups in order to be able to present a plan, or at least a synthesis of viewpoints, to the Tribunal before the end of the month," Ms. Chabrier told Reuters. The Paris Commercial Court will then determine whether the plan is balanced and equitable to all stakeholders, before soliciting consents from the creditor committees. Ms. Chabrier said that Eurotunnel's proposed restructuring agreement remain as basis for the talks. As reported in TCR-Europe on Sept 11, the court administrators sent out letters to registered holders of bank debt on Aug. 2, informing them to their appointment to a committee of bank debt holders. This committee will get to vote on Eurotunnel's restructuring plan. Under the French legal proceedings, Eurotunnel creditors have until Oct. 1 to file their claims with the court; administrators have until Nov. 1 to present a restructuring proposal. This plan would have to be circulated to bondholders by Nov. 15 and creditors would have 15 days to vote on it, the company said. According to Eurotunnel, the Paris Commercial Court should give its decision at the end of 2006, or at the latest, at the beginning of 2007. Restructuring Proposals Under Gounon's latest plans, shareholders would receive at least 13% of Eurotunnel's equity after a restructuring. Junior bondholders were offered GBP75 million in cash and some warrants in exchange for their GBP1.9 billion of debt. "At the moment there is an attitude of 'we have to save the company' -- but we can't just accept everything," the source close to the bondholders told Reuters. Eurotunnel had turned down, on June 27, a restructuring plan prepared by a group of secured bondholders led by Deutsche Bank AG asserting that it requires too much debt and gives too much to bondholders. The bondholders' restructuring plan, which values the company at EUR7.99 billion, aimed to reduce 60% of total debt to EUR3.7 billion and issue a EUR2.175 billion convertible hybrid note with a 4% coupon. The plan rivaled the preliminary restructuring agreement backed by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays PLC. The plan dated May 23, valued the company at around EUR7.03 billion and included a EUR1.5 billion hybrid issue with a 6% to 9% coupon and would reduce debt by 54%. Under the agreement, bondholders will get a GBP75 million return for their GBP1.9 billion bond holdings. On July 12, Eurotunnel presented an ultimate proposal to reach a compromise between the May 23 preliminary restructuring agreement and the demands made by its subordinated creditors represented by ARCO. The company claimed that the majority of these demands were satisfied by the substantial efforts jointly made by the company and the Ad Hoc Committee, which represents the group's senior creditors. The subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a consensual deal. Absent a final agreement, the Group may default in January 2007 under a 1998 debt agreement. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. EUROTUNNEL GROUP: Third Quarter Total Revenue Up to GBP149.5 Mln ---------------------------------------------------------------- Eurotunnel Group reported growth in activities for the third quarter of 2006. The group disclosed GBP149.5 million in total revenue for 2006 a 7% increase compared with GBP140.1 million total revenue for the same quarter in 2005. "I would like to thank our customers for their loyalty and our teams for their commitment," Jacques Gounon, Chairman and Chief Executive of Eurotunnel disclosed. "They have enabled us to achieve remarkable performance levels this summer. These successes must nevertheless be viewed in context which remains worrying: it is my responsibility to point out that Eurotunnel cannot continue much longer in this course, unless the very serious uncertainty which weighs on its future is removed. Only a vote in favor of the Safeguard plan, which will be put to creditors before the end of the month, can remove this uncertainty." Revenue Eurotunnel's revenue, which results from transport and non- transport activities, totaled GBP149.5 million for the third quarter of 2006. At constant exchange rates, this represents a 7% increase over the same period in the previous year. Shuttle services -- Eurotunnel's core activities -- are the principal drivers of this growth. Revenue from these activities grew by 12% to EUR87.3 million. The Truck service is showing the benefit of the restoration of direct control by Eurotunnel over the sales network. Revenues from the Railways increased slightly to GBP59.8 million for the third quarter in 2006 from GBP58.5 million for the same period in 2005. They include payments under the Minimum Usage Charge, which represented GBP15.4 million for the period; this arrangement will cease at the end of November 2006. Revenue from non-transport activities remains marginal, with a decrease due to a non-recurring item recorded during the summer of 2005. Traffic The number of trucks transported on Eurotunnel's Freight Shuttle service increased by 4%, to 305,850. Eurotunnel's Passenger Shuttles carried 625,862 cars and 17,295 coaches. In the third quarter of 2006, 2,152,063 people chose to travel through the tunnel by Eurostar representing a 10% increase over the same period in 2005, during which traffic growth slowed following attacks on London. Trains operated by the Railways carried 371,910 tonnes of freight in the third quarter of 2006, 3% more than in 2005. Despite this progression, traffic levels remain very much lower than the original forecasts and below the capacity of the Channel Tunnel. Safeguard Procedure Eurotunnel obtained on Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). Under the French legal proceedings, Eurotunnel creditors have until Oct. 1 to file their claims with the court; administrators have until Nov. 1 to present a restructuring proposal. This plan would have to be circulated to bondholders by Nov. 15 and creditors would have 15 days to vote on it, the company said. According to Eurotunnel, the Paris Commercial Court should give its decision at end of 2006, or at the latest, at the beginning of 2007. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. * * * Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. EXMOOR TEDDY: Brings In Laurence Russell as Administrator --------------------------------------------------------- Laurence Russell of Albert Goodman was appointed administrator of The Exmoor Teddy Bear Company Ltd. (Company Number 4881166) on Oct. 6. The administrators can be reached at: Albert Goodman Mary Street House Mary Street Taunton Somerset TA1 3NW United Kingdom Tel: 01823 286096 Fax: 01823 257319 Headquartered in Bridgwater, United Kingdom, The Exmoor Teddy Bear Company Ltd. retails teddy bears. FORD MOTOR: Anthony Bamford Withdraws Plans to Buy Jaguar --------------------------------------------------------- Anthony Bamford, JC Bamford Excavators Ltd.'s chairman of the board, has abandoned plans of buying the Jaguar brand from Ford Motor Co., the Associated Press reports. Mr. Bamford had signaled his interest for the luxury car brand in August. "Sir Anthony had always expressed an interest in Jaguar alone and it appears that it is not for sale," JCB spokesman Daniel Ward was quoted by AP as saying. In a TCR-Europe report on Sept. 29, Lewis Booth, head of Ford of Europe and the Premier Automotive Group, revealed that it has no plans of selling its Jaguar brand at the moment. According to Mr. Bamford, cited in the Financial Times, Ford was only interested in selling the Jaguar brand together with the profitable Land Rover operations. "I am not interested in buying the two together and am therefore not getting involved," Mr. Bamford said. JC Bamford is a U.K.-based construction-machinery company. Mr. Bamford previously said that the brand has potential although Jaguar needs to cut ties with Land Rover for him to consider his plans further. Ford has explored strategic options for its Aston Martin sports- car unit in August, with particular emphasis on a potential sale of all or a portion of the unit. Last week, the company also put Automobile Protection Corp., its extended warranty service, on the auction block. Jaguar is part of the Premier Automotive Group -- the organization under which all of Ford's European brands are grouped -- which includes other brands like Volvo, Land Rover and Aston Martin. In Ford's second quarter results, the segment incurred US$180 million net loss. The Company's management said the decline in earnings in the PAG segment primarily reflected unfavorable currency exchange related to the expiration of favorable hedges, adjustments to warranty accruals for prior model-year vehicles, mainly at Land Rover and Jaguar, and lower market share at Volvo associated with new model changeovers, offset partially by favorable product and market mix and lower overhead costs. European Restructuring Ford of Europe President and CEO John Fleming disclosed in early September that Ford Motor's strategic overhaul will not lead to a big revamp in its profitable European operations, Reuters reported. "We will continue to do what we always do -- we continue to refine our weight and get efficiencies year over year -- but not a major reorganization," Mr. Fleming said. Reuters said the company has already reduced the number of European assembly plants to seven from 11 and cut 9,300 jobs since 2000, while increasing output. Ford's plants now operate at over 100 percent capacity, and employs around 66,000 staff including joint ventures. In August 2006, sales of Ford brand vehicles in 21 European countries decreased 400 units to 95,300 vehicles and year-to- date sales increased 17,000 units to nearly 1.14 million units. In 2005, Ford of Europe earned US$129 million. As reported in TCR-Europe on Sept. 18, Ford Motor disclosed plans to further reduce its capacity and work force, and ramp up new product introductions as it accelerates its North America "Way Forward" turnaround plan. Ford will cut its North American salaried-related work force by about a third and offer buyout packages to all Ford and Automotive Components Holdings hourly employees in the U.S. The reductions will contribute significantly to reducing ongoing annual operating costs by about US$5 billion. In addition, Ford will renew 70% of its North American product lineup by volume by the end of 2008. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in TCR-Europe on Sept. 21, Moody's Investors Service lowered Ford Motor Company's corporate family rating and senior unsecured to B3 from B2, and Ford Motor Credit Company's senior unsecured to B1 from Ba3. Ford's Speculative Grade Liquidity rating has also been lowered to SGL-3 from SGL-1. The rating outlook is negative. These rating actions conclude a review for possible downgrade that was initiated on Aug. 18. At the same time, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Ford Motor Co., Ford Motor Credit Co. and all related units -- except FCE Bank PLC -- to 'B' from 'B+' and its short-term ratings on these entities to 'B-3' from 'B-2.' The ratings on FCE Bank, Ford Credit's European bank, were lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch rating differential between FCE and its parent that was established in July. As reported in the Troubled Company Reporter on Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). Fitch Ratings also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services also placed its 'B+' long- term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. As reported in the Troubled Company Reporter on July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12-month period. Moody's said the outlook for the ratings is negative. GLASS HOUSES: Names William Antony Batty as Administrator --------------------------------------------------------- William Antony Batty of Antony Batty & Company was named administrator of Glass Houses Ltd. (Company Number 03053782) on Sept. 27. The administrator can be reached at: Antony Batty & Company 3 Field Court Grays Inn London WC1R 5EF United Kingdom Tel: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com Headquartered in Norwich, United Kingdom, Glass Houses Ltd. -- http://www.glass-houses.com/-- designs, manufactures and installs conservatories. HILTON HOTELS: 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 gaming, lodging and leisure sectors, the rating agency confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp. Additionally, Moody's revised and 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 ---------- ------- ------- ------ ---------- Senior Notes with an average rate of 8.1% due 2007 - 2031 Ba2 Ba2 LGD4 53% Chilean inflation indexed note effective rate 7.65% due 2009 Ba2 Ba2 LGD4 53% 3.375% Contingently convertible senior notes due 2023 Ba2 Ba2 LGD4 53% Minimum Leases Commitments Ba2 Ba2 LGD4 53% Term Loan A at adjustable rates due 2011 Ba2 Ba2 LGD4 53% Term Loan B at adjustable rates due 2013 Ba2 Ba2 LGD4 53% Revolving loans at adjustable rates, due 2011 Ba2 Ba2 LGD4 53% Senior unsecured debt shelf (P)Ba2 (P)Ba2 LGD4 53% Subordinate debt Shelf (P)Ba3 (P)B1 LGD6 97% Preferred (P)B1 (P)B1 LGD6 97% 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 alphanumeric 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 Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. In Europe, Hilton Hotels operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands and Sweden. HIT ENTERTAINMENT: Moody's Affirms Low-B Ratings on Amendments -------------------------------------------------------------- Moody's affirmed all HIT Entertainment's ratings and stable outlook, following the company's request for credit agreement amendments, which allows the company more flexibility under its covenants. The proposed amendments adjust for HIT's lower EBITDA growth compared to original projections and higher investments going forward, as the company takes a greater share of toy manufacturing in house. HIT's corporate family rating continues to reflect its high leverage, sizable annual programming expenses and competitive operating environment, offset by attractive assets with strong brand value and good growth opportunities. While in Moody's view, HIT's increased capital investment should enhance the company's value over the long term, in the short to medium term it increases risk to HIT's lenders. The company presents relatively high financial risk, as its leverage remained elevated at 5.7 times debt-to-EBITDA in 2006. While HIT had modest positive free cash flow in the last year, Moody's expects negative free cash flow in 2007 given the current plans for investments in the new ToyCo. Ratings affirmed: * Corporate Family Rating, B1 * Probability of Default Rating, B1 * Senior Secured First Lien Bank Credit Facility, Ba3, LGD3, 34% * Senior Secured Second Lien Loan, B3, LGD5, 87% The rating outlook is stable. HIT Entertainment, with offices in London, Dallas and New York, is a leading pre-school entertainment company with a portfolio of properties including Bob the Builder, Thomas the Tank Engine, and Barney the Dinosaur. HIT's annual revenues are approximately US$260 million. The company has operations in the U.K., U.S., Canada, Japan and Germany. Business segments include home entertainment, consumer products, television and live events as well as a U.S. digital pre-school channel. INSTRUMENT TECHNOLOGY: Vacuum Hardware Manufacturer Up for Sale --------------------------------------------------------------- Andrew Stoneman and Paul Clark of Menzies Corporate Restructuring, in their capacities as joint administrators of Instrument Technology Limited, are offering to sell the company's business and assets as a going concern. The company manufactures and distributes Vacuum Hardware and reports a GBP10 million turnover per year. Its customer base includes those from the industrial and research sectors. The assets for sale include: -- approved to quality standards ISO9001:2000 -- high output precision CNC facility with two leasehold premises in Hastings; and -- around 100 employees. Inquiries can be addressed to: Peter Hart or Oliver Carter Menzies Corporate Restructuring 17-19 Foley Street London W1W 6DW United Kingdom Tel: 020 7487 7240 Fax: 020 7487 7299 E-mail: phart@menzies.co.uk ocarter@menzies.co.uk Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. ISLE OF CAPRI: 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 Gaming, Lodging & Leisure sector, the rating agency confirmed Isle of Capri Casinos, Inc.'s Ba3 Corporate Family Rating. Additionally, Moody's upgraded its probability-of-default ratings and assigned loss-given-default ratings on these debts: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. Revolver Ba2 Ba1 LGD2 18% Sr. Sec. Term Loan Ba2 Ba1 LGD2 18% 7% Sr. Sub. Notes B2 B1 LGD5 76% 9% Sr. Sub. Notes B2 B1 LGD5 76% Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq: ISLE)-- http://www.islecorp.com/-- a developer and owner of gaming and entertainment facilities, operates 16 casinos in 14 locations. 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, Florida. LAMDA POLYTECH: Appoints Martin Dominic Pickard as Administrator ---------------------------------------------------------------- Martin Dominic Pickard of Mazars LLP was appointed administrator of Lamda Polytech Ltd. (Company Number 03987084) on Oct. 2. Mazars -- http://www.mazars.com/-- is an international, integrated and independent organization, specialized in audit, accounting, tax and advisory services. Headquartered in Brackley, United Kingdom, Lamda Polytech Ltd. - - http://www.lamdapolytech.co.uk/-- manufactures optical and photographic equipment. MAINE OFFICE: Appoints Baker Tilly as Joint Administrators ---------------------------------------------------------- M. J. Wilson and Geoff Carton-Kelly of Baker Tilly were appointed joint administrators of Maine Office Ltd. (Company Number 05007856) on Oct. 2. Headquartered in Birmingham, United Kingdom, Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. The firm's annual fee income is over GBP168 million and is part of a global network, which has 122 member firms in 85 countries as an independent member of Baker Tilly International. Headquartered in Kings Langley, United Kingdom, Maine Office Ltd. manufactures metal filing cabinets. MIDLAND TOYS: PricewaterhouseCoopers Selling Toy Retailer --------------------------------------------------------- Robert Hunt and Mark Hopkins, in their capacities as joint administrative receivers of Midland Toys Ltd., are offering to sell the company's business and assets. Established since 1978, Midland Toys Ltd. retails toys, gifts and other household goods. It trades as Carols Megastore in Cannock and Carols Superstore in Lichfield. The company employs around 130 workers and reports a GBP10 million turnover annually. Inquiries can be addressed to: Val Taylor PricewaterhouseCoopers LLP Cornwall Court 19 Cornwall Street Birmingham B3 2DT United Kingdom Tel: 0121 265 5677 Fax: 0121 265 5651. E-mail: val.taylor@uk.pwc.com PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. NOVELIS INC: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors last week, the rating agency confirmed its B1 Corporate Family Rating for Novelis 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: Novelis Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million Gtd. Sr. Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 billion 7.25% Gtd. Senior Unsecured Notes due 2015 B2 B3 LGD5 76% Issuer: Novelis Corporation Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% 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 alphanumeric 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 Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. In Europe, the company maintains operations in France, Germany, Luxembourg, Switzerland and the United Kingdom. OCEAN GOLD: Fish Products Supplier up for Sale ---------------------------------------------- Rob Sadler and Michael Saville, in their capacities as joint administrative receivers of Ocean Gold Seafoods Limited, are offering to sell the whole of the company's business and assets. Ocean Gold Seafoods Limited is a leading producer of coated fish portions, fish fillets and formed fish cakes and burgers. It supplies to trade and supermarkets from its production center in a freehold property in Hull. The company reports approximately GBP4 million in sales turnover in 2005/2006. Inquiries can be addressed to: Paul Beardsley Begbies Traynor 9th Floor Bond Court Leeds LS1 2JZ United Kingdom Tel: 0113 244 0044 Fax: 0113 244 5820 E-mail: paul.beardsley@begbies-traynor.com Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. PPC SUPPLIES: Appoints Administrators from RSM Robson Rhodes ------------------------------------------------------------ David Michael Riley and Simon Peter Bower of RSM Robson Rhodes LLP were appointed joint administrators of PPC Supplies Ltd. (Company Number 01383531) on Oct. 4. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- is a U.K. partnership of chartered accountants and management consultants, providing a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. PPC Supplies Ltd. can be reached at: Unit 9 Bermondsey Trading Estate Rotherhithe New Road London, SE16 3LL United Kingdom Tel: 020 7231 2302 PROFILE WRAPPERS: Taps Joint Administrators from KPMG ----------------------------------------------------- Allan Watson Graham and Mark Jeremy Orton of KPMG LLP were appointed joint administrators of Profile Wrappers Ltd. (Company Number 04660905) on Oct. 5. 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. Profile Wrappers Ltd. can be reached at: Marlborough House Marlborough Way Tamworth Staffordshire B77 2HA United Kingdom Tel: 01827 262 024 Fax: 01827 262 024 SANA FOR LIFE: Brings In Begbies Traynor to Administer Assets ------------------------------------------------------------- Paul Michael Davis and Timothy John Edward Dolder of Begbies Traynor (South) LLP were appointed joint administrators of Sana for Life Ltd. (Company Number 04935360) on Oct. 5. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Sana For Life Ltd. can be reached at: The Chestnuts Hinxworth Baldock Hertfordshire SG7 5HF United Kingdom Tel: 01923 812900 Fax: 01923 812999 SEA CONTAINERS: Gets Authority to Employ BMC as Claims Agent ------------------------------------------------------------ Sea Containers Ltd. and its debtor-affiliates sought and obtained the United States Bankruptcy Court for the District of Delaware's authority to employ BMC Group to act as their noticing, claims, solicitation and balloting agent, nunc pro tunc to the Petition Date, pursuant to Section 156(c) of the Judiciary Code, Rule 2002 of the Federal Rules of Bankruptcy Procedure, and Local Rule 2002-1(f). Although the Debtors haven't filed their schedules of assets and liabilities, they expect that there will be hundreds of entities that they will be required to serve with various notices, pleadings and other documents. The Debtors believe that BMC's appointment will expedite the distribution of notices and relieve the Clerk's office of the administrative burden of processing those notices. The Debtors' estates and creditors will also benefit from BMC's experience and cost-effective methods, Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, says. As Claims Agent, BMC will: (a) assist the Debtors by performing administrative tasks in the preparation and filing of the Debtors' schedules and statement of financial affairs; (b) notify all potential creditors of the filing of the Chapter 11 petitions and of the setting of the first meeting of creditors, pursuant to Section 341 of the Bankruptcy Code; (c) file affidavits of service for all mailings, including a copy of each notice, a list of persons to whom that notice was mailed, and the date mailed; (d) maintain an official copy of the Debtors' Schedules, and a list of creditors and amounts owed; (e) furnish a notice of the last date of the filing of proofs of claim and a form for filing a proof of claim to creditors and parties-in-interest; (f) docket all claims filed and maintain the official claims register on behalf of the Clerk and provide to the Clerk an exact duplicate of that register; (g) specify in the claims register for each claim docket (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant, (iv) the filed amount of the claim, if liquidated, and (v) the allowed amount of the claim; (h) record all transfers of claims and provide notices of the transfer as required pursuant to Bankruptcy Rule 3001(e); (i) maintain the official mailing list for all entities who have filed proofs of claim; (j) mail the Debtors' disclosure statement, plan, ballots, and any other related solicitation materials to holders of impaired claims and equity interests; (k) receive and tally ballots, and respond to inquiries respecting voting procedures and the solicitation of votes on the plan; (l) establish, maintain, and update a Web site dedicated to providing information on the Debtors' restructuring to various parties-in-interest; (m) establish a call center to address vendor, customer and employee inquiries regarding the Debtors' reorganization; and (n) provide any other distribution services as are necessary or required. The Debtors will pay BMC's standard prices for its services, expenses and supplies. BMC agrees to cap its fees at US$150,000 for any services performed in connection with the preparation of the Debtors' Schedules and Statements. The Debtors will provide BMC with a US$40,000 advance payment retainer. The Debtors will keep the retainer "evergreen" by making monthly payments in an amount necessary to restore the balance of the retainer to US$25,000. Tinamarie Feil, president of BMC Group, assures the Court that neither her firm nor any of its employee is connected with the Debtors, their creditors, other parties-in-interest or the United States Trustee or any person employed by the Office of the U.S. Trustee. A full-text copy of the Debtors' Agreement with BMC is available for free at http://bankrupt.com/misc/sea_BMCagreement.pdf About Sea Containers Ltd. Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. SECURE COMPUTING: 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 U.S. Technology Software sectors last week, the rating agency confirmed its B3 Corporate Family Rating for Secure Computing Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$20 Million Senior Secured Revolving Credit Facility due 2012 B2 B2 LGD3 31% US$90 Million Senior Secured First Lien due 2013 B2 B2 LGD3 31% 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 alphanumeric 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 San Jose, California, Secure Computing Corporation -- http://www.securecomputing.com/-- is a provider of enterprise security products. The company has its international headquarters in Hong Kong, and the United Kingdom. SFX ENTERTAINMENT: 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 Gaming, Lodging & Leisure sector, the rating agency confirmed SFX Entertainment Inc.'s B1 Corporate Family Rating. Additionally, Moody's confirmed its probability-of-default ratings and assigned loss-given-default ratings on these debts: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- senior secured revolver due 2012 B1 LGD3 48% senior secured term loan due 2013 B1 LGD3 48% Moody's current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology 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 its 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 alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%). SFX Entertainment Inc. is a diversified promoter, producer and venue operator for live entertainment events. In addition, SFX is a fully integrated sports marketing and management company specializing in the representation of sports athletes and broadcasters, integrated event management, television programming and production and marketing consulting services. SFX operates 92 venues used principally for music concerts and other live entertainment events in 31 of the top 50 markets. These venues include 17 amphitheaters in the top 10 markets, and nine venues principally used for theatrical presentations. In addition, SFX owns or operates 28 international venues used primarily for theatrical presentations, principally in the United Kingdom. SFX operates in four major business segments within the live entertainment industry: music, theater, sports and family entertainment and other. VECTA SOFTWARE: Appoints KPMG to Administer Assets -------------------------------------------------- Richard John Hill and David John Crawshaw of KPMG LLP were appointed joint administrators of Vecta Software Corp. Ltd. (Company Number 2860340) on Oct. 2. 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. Vecta Software Corporation Ltd. can be reached at: Vecta House Edmund Halley Road Oxford Science Park Oxford Oxfordshire OX4 4GB United Kingdom Tel: 01865 381 700 SKYEPHARMA PLC: Posts GBP26.4 Mln Net Loss in 2nd Quarter 2006 -------------------------------------------------------------- SkyePharma PLC announces financial results for the six months ended June 30, 2006. Operating Highlights Marketed products: -- Sales of royalty-earning products reported by SkyePharma's partners have largely met or exceeded its expectations, -- Pipeline progress: * DepoDur(TM) approved in UK, * DepoCyt(R) approved in Australia, * zileuton CR filed by Critical Therapeutics, * Lodotra(TM) filed by Nitec, * Flutiform(TM) commenced Phase III trials, and * Foradil(R) Certihaler(TM) successfully modified and modifications filed with the FDA. New corporate agreements: -- Flutiform(TM) licensed to Kos Pharmaceuticals for USA, -- Flutiform(TM) licensed to Mundipharma for Europe, -- DepoBupivacaine(TM) rights regained from Mundipharma, -- Development of nisoldipine CR for Sciele Pharma, and -- Negotiations ongoing to divest the Injectables unit. Financial highlights -- Revenue GBP25.6 million (2005: GBP36 million) -- Royalties GBP11.5 million (2005: GBP12 million) -- R&D spend GBP19.2 million (2005: GBP10.9 million) -- Gross Profit GBP12 million (2005: GBP21.4 million) -- Loss before tax GBP26.4 million (2005: GBP12.8 million) -- Loss per share GBP3.5 (2005: GBP2.1) -- Net cash GBP21.8 million (2005: GBP19.0 million) "SkyePharma has made significant progress on the strategic objectives put forward this year. With our new management team in place, we have licensed Flutiform(TM), our major pipeline asset, in both the USA and Europe," Frank Condella, chief executive officer, commented. "We have also expanded our development pipeline while improving our operational efficiency. Throughout the remainder of this year we look forward to continue executing on our strategic plan, including the divestiture of our injectables unit as an outright sale or under the possible alternative scenario of the out-licensing of DepoBupivacaine. "We continue to believe that if we deliver on our strategic objectives we will reach sustainable profitability and create value for shareholders." Chairman's Statement Dr. Jerry Karabelas, the Company's non-executive chairman, said that SkyePharma has made substantial progress on executing its strategic plan announced earlier this year. SkyePharma's founder Ian Gowrie-Smith resigned from the Board in January and Dr. Karabelas was appointed non-executive chairman in his place. A new executive management team has also been appointed with Frank Condella as chief executive officer and Dr. Ken Cunningham as chief operating officer. Both have now joined the Board. This is a stand-alone operation in San Diego with its own management team, manufacturing facilities for marketed products (DepoCyt(R) and DepoDur(TM)), and R&D activities with a pipeline of products including DepoBupivacaine(TM) and several therapeutic proteins. The Company retained UBS as its investment bank to manage the divestment process. The Company is in active negotiations with several parties interested in acquiring the entire business unit, with terms likely to include a combination of upfront and milestone payments and royalties on product sales. In addition, a number of parties have expressed their interest in licensing DepoBupivacaine(TM), the major pipeline asset. The Company is therefore in parallel negotiations regarding a potential license. Under this option, the Company would expect an upfront payment and full funding of further development of DepoBupivacaine(TM), milestone payments and a longer-term royalty stream. Should it pursue the license option, the Company would plan to reduce the size of the unit, minimizing the ongoing cash burn, and pursue the future divestment of the remaining components of this business unit. The Company aims to complete a transaction before the end of the year. The Company will continue Phase III for Flutiform(TM) and out- license Phase III trials started in February as planned. This represents its major R&D expenditure until anticipated completion in mid-2007. The 12-month safety study is ongoing and the three pivotal studies have also commenced recently, all on track for its target of filing with the FDA in the second half of 2007 and in Europe in 2008. In May, the Company granted exclusive U.S. marketing rights for Flutiform(TM) to Kos Pharmaceuticals, a US specialty pharmaceutical company with a highly successful sales record and experience in the respiratory market. The Company is convinced that Kos has an ideal profile to optimize sales of Flutiform(TM) in the key U.S. market, and the Company is gratified by its obvious commitment to the product. The Company recently announced a partnership with Mundipharma for Europe and other territories. Clinical Trials In June, SkyePharma's Business Review disclosed that it is about to enter clinical trials in two new projects: a treatment for pain and inflammation and a novel approach to the treatment of sleep disorders. The Company also announced one new partnered project (a controlled release version of Sular(R) (nisoldipine), the lead product of Sciele Pharma, the Company's U.S. partner for Triglide(TM)), and two late-stage products that have now been filed: a controlled release version of the oral asthma drug Zyflo(R) for Critical Therapeutics and Lodotra(TM), a delayed release formulation of an anti-inflammatory drug for rheumatoid arthritis for Nitec. The Company is seeking additional complementary projects to reinforce its pipeline. The Company has been reviewing all costs, but remain committed to prudent R&D expenditure as it is the future of the company. Having completed a survey of the London market, the Company has found the rent of its existing offices to be highly competitive. Regardless, it has reduced its space requirements and halved the costs of its London head office. Also, it is vacating its U.S. office in New York, which will further reduce overheads. The Company has reviewed overall staffing levels and reduced the number of personnel at its plant in Lyon. Finally, it has restructured its investor relations, legal, and company secretarial functions. Dr. Karabelas said that he is confident that the strategy the Company has adopted will enable it to maximize the potential of Flutiform(TM) and other pipeline products, to become profitable and to deliver long-term value for shareholders. Financial Review The Group's revenues are sensitive to the timing and recognition of milestone payments and up-front payments received on the signing of new agreements. Revenues for the first six months of 2006, at GBP25.6 million, were 29% below the GBP36.0 million reported in the first half of 2005, primarily due to the phasing of recognition of up-front revenues received in 2006 for the US marketing and distribution rights for Flutiform(TM). Contract development and licensing revenue in the half year decreased by GBP9.3 million to GBP10.2 million, compared with GBP19.5 million in 2005. Revenues recognized from milestone payments and up-front payments received on the signing of agreements amounted to GBP8.3 million in the first half of 2006 compared with GBP17.6 million in 2005, primarily due to differences in revenue recognition for up-front payments received. Under SkyePharma's accounting policy for revenue recognition, up-front payments are generally deferred and recognized over the period of development up to filing. Consequently, while SkyePharma received GBP13.4 million ($25 million) in May 2006 from Kos for the US marketing rights to Flutiform(TM), only GBP2.9 million was recognized in the first half of 2006. By contrast, in the first half of 2005, the Company was able to recognize GBP10.7 million from the payment from Sciele Pharma for the approval of Triglide(TM). Research and development costs recharged remained constant at GBP1.9 million. The recent up-front payment of GBP10.1 million (EUR15.0 million) received on signature of a licensing transaction with Mundipharma for European rights to Flutiform(TM) will result in a significant increase in the total revenue in respect of Flutiform(TM) that can be recognized in the second half of 2006, compared with the 2.9 million pounds recognized in the first half of 2006. Royalty income decreased slightly to GBP11.5 million compared with GBP12.0 million in the first half of 2005. During the early part of 2005 the Company received royalties based on GlaxoSmithKline's budgeted sales of Paxil CR(TM) while the product was temporarily off the market as a result of GSK's suspension of production at their Cidra plant in Puerto Rico. The slight decrease in 2006 was due to a 48% fall in Paxil CR(TM) royalty income: although the product returned to the market in June 2005, continuing supply constraints mean that sales have not fully recovered to the pre-withdrawal level. This was largely offset in 2006 by an increase in royalty income from DepoCyt(R), Triglide(TM), Xatral(R), and Coruno (R). Excluding Paxil CR(TM), royalties for the balance of SkyePharma's other products grew by 50% in the first half of 2006 compared with the first half of 2005. Manufacturing and distribution revenue decreased by GBP600,000 in the first half to GBP3.9 million, compared with GBP4.5 million in the first half of 2005, primarily due to a fall in the production of clinical trial material for Novartis in respect of QAB 149 following the withdrawal of Foradil(R) Certihaler(TM) from the market. Going Concern Doubt As reported in the Troubled Company Reporter on Aug. 1, 2006, PricewaterhouseCoopers LLP in London, disclosed that there is uncertainty as to when Skyepharma PLC's certain strategic initiatives may be concluded and their effect on the Company's working capital requirements. PwC said that this raises substantial doubt on the Company's ability to continue as a going concern. PwC disclosed this explanatory paragraph after auditing the Company's financial statement for the year ended Dec. 31, 2005. About SkyePharma PLC Headquartered in London, United Kingdom, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now twelve approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilization capabilities. WORLD GAMING: Creditors Appoint UHY Hacker as Administrators ------------------------------------------------------------ World Gaming PLC's secured creditor appointed Andrew Andronikou and Peter Kubik of UHY Hacker Young as the company's joint administrators following the Board's notification of the discontinuation of its U.S. operations. The company's secured creditor concluded that administration will achieve a better result for the Company's creditors than a company being wounded up. Board Resignations At a board meeting on Oct. 13, Daniel Moran resigned as the company's chief executive officer. Chief Financial Officer David Naismith also resigned from his post while Jonathan Moss and Michael Cumming also gave up their seats as directors. World Gaming requested Oct. 9 the suspension of trading of the company's shares with immediate effect due to uncertainty over its ability to continue trading. Subsequently, the Financial Times Stock Exchange delisted the company's shares at the FTSE AIM. World Gaming plc -- http://www.worldgaming.com/-- is a U.K.- based holding company whose subsidiaries participate in Internet gaming software licensing and operations. The World Gaming Group is an international developer, licensor, and provider of online gaming products, including casino, sportsbook, and pari- mutuel betting. YMD REALISATIONS: Creditors' Meeting Slated for October 26 ---------------------------------------------------------- Creditors of YMD Realisations Limited formerly known as Yoo Media Dating Limited (Company Number 02792947) will meet at 11:00 a.m. on Oct. 26 at: UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 19 at: Peter Alan Kubik and Ladislav Hornan Joint Administrators UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 * Moody's Sees Modest Credit Quality Improvement in 3rd Quarter -------------------------------------------------------------- Corporate credit quality improved modestly in the third quarter of 2006, with the ratio of credit rating upgrades to downgrades at 1.16 during the quarter, Moody's Investors Service says in its latest quarterly update of rating actions, reviews and outlooks. The upgrade-to-downgrade ratio was lower this quarter than it was in the previous two quarters. There was a marked increase in both upgrades and downgrades of bond ratings during the quarter, but much of the increase in rating activity was due to the rating changes accompanying the introduction of loss given default (LGD) assessments and probability of default (PD) ratings to the obligations of the North American speculative-grade issuers. A large share of all rating actions were, therefore, concentrated in the speculative- grade range of Moody's rating spectrum. Regional variations in credit-quality trends continued, with upgrades slightly exceeding downgrades in North America, after being fairly balanced in the second quarter. The Asia-Pacific region continued to see many more upgrades than downgrades -- 24 upgrades compared to only 9 downgrades -- in third quarter 2006, but the torrid pace of upgrades seen in the past few quarters has slowed down, according to Moody's. The Latin America region also saw more upgrades than downgrades. In Europe, average credit quality declined modestly, with 3.2% of the issuers downgraded, compared to 1.0% of issuers that were upgraded. This decline in credit quality is in contrast to the credit quality improvements observed in Europe over the past several quarters. "Certain sectors like hotels and leisure, media, entertainment and consumer products saw strong credit quality improvements," says Moody's vice president, Praveen Varma, author of the report, "with many more issuers upgraded than downgraded." On the other hand, industries like automotive, forest products, metals and mining experienced more downgrades than upgrades, with a high number of negative outlooks in industries like aerospace, automotive, healthcare and forest products. Among all issuers globally, 9.4% had negative outlooks at the end of the quarter, compared to 7.8% with positive outlooks. The ratio of negative outlooks to positive outlooks was even more lopsided within the speculative-grade sector. * Fitch Identifies Levels of Risk on European Cable Market ---------------------------------------------------------- Fitch Ratings disclosed that the European leveraged cable market exhibits a broad array of risk profiles. The agency has identified levels of operational risk across the major European cable markets, and notes that high levels of operational risk are not always accompanied by low levels of financial risk. "Cable operators across Europe vary considerably in their competitive positioning, network reach and quality, and capital structure," comments Michelle De Angelis, Director in Fitch's Leveraged Finance team. "These first two factors depend to an extent on external legacy factors, namely the national market in which they operate and how that has developed over time." Although a number of industry risks face every cable operator regardless of nationality, Fitch concludes that the Europe-wide cable market is best examined on a country-by-country basis before arriving at operator-specific analysis. Fitch describes its "tiering" of each of the major European cable markets based on their level of relative operational risk. Tier 1 countries, including Belgium, the Netherlands and Switzerland, have low levels of operational risk and are characterized by cable operators with very high household penetration, strong positions in broadband and a foothold in the telephony market. Tier 2 countries, including Germany, Spain and the U.K., have moderate levels of operational risk and experience a greater degree of competition and lower household penetration, and may not have such wide geographical coverage. Tier 3 countries, i.e. France, have high levels of operational risk and are characterized by relatively low household penetration, less than full geographical coverage and cable operator with a weaker position in a highly competitive market environment. The respective country tier does not dictate a cable operator's rating, but rather is a key factor in determining whether an individual operator qualifies for "second incumbent status". Fitch considers a cable operator to have "second incumbent" status if it can compete on equal or almost equal terms with the national incumbent. Classification as a "second incumbent" largely follows the country tiers already mentioned, for instance, Belgium's Telenet is considered a "second incumbent" within its Flemish-speaking franchise areas, as is Switzerland's Cablecom, as the only significant alternative network operator in Switzerland, despite accounting for only 83% of the cable market. However, other operators may have the potential to become "second incumbents" with the passage of time and further investment, for example ONO or KDG. "Second incumbent" status does not in itself determine a cable operator's issuer default rating, but serves as an indicator of the relative degree of operational risk in the market and therefore informs Fitch's view of the relative level of financial risk that can be sustained in each market, for each operator. However, differing levels of operational risk across the cable sector do not necessarily bear an inverse relationship to the level of financial risk. At one end of the scale, Telenet in Belgium has low operational risk and low financial risk: a very strong competitive position, a fully upgraded network, and low net leverage at 3.8x. At the other extreme, Unity Media in Germany has high operational risk and high financial risk: lower TV penetration, minimal levels of telephony and broadband penetration, a network that requires significant further investment and high net leverage at 7x. An unproven business model, in the context of its DFL Bundesliga football rights, adds further risk. This exemplifies the rather broad array of risk profiles in Fitch-rated cable transactions in Europe, ranging from BB- for Telenet and KDG to B-. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- October 19, 2006 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com 240-629-3300 October 25, 2006 BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Review Risks, Examine Latest Decisions Affecting Directors, Advisors and Lenders of Troubled Companies Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com 240-629-3300 October 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Presentation with guest speaker Jeff Carhart of Miller Thomson Petroleum Club, Edmonton, AB Contact: http://www.turnaround.org/ October 16, 2006 AMERICAN BANKRUPTCY INSTITUTE A Year After BAPCPA Georgetown University Law Center, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ October 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Updates on the New Bankruptcy Law Kansas City, Missouri Contact: http://www.turnaround.org/ October 18-19, 2006 EUROMONEY 2nd Annual Latin America Syndicated Loans Conference JW Marriott Hotel, Miami, FL Contact: http://www.euromoneyplc.com/ October 18, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting Washington Athletic Club, Seattle, WA Contact: http://www.turnaround.org/ October 19, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA of Nevada's 1st Breakfast Meeting The A,B,C's of Valuing and Selling a Business Palace Station, Las Vegas, NV Contact: http://www.turnaround.org/ October 19, 2006 TURNAROUND MANAGEMENT ASSOCIATION Navigating the Potholes and Speed Bumps on Today's Economic Highway Waller Lansden Dortch & Davis Nashville, TN Contact: http://www.turnaround.org/ October 19, 2006 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in e-Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: 240-629-3300; http://www.beardaudioconferences.com/ October 19, 2006 TURNAROUND MANAGEMENT ASSOCIATION Billards Networking Night - Young Professionals TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ October 21, 2006 TURNAROUND MANAGEMENT ASSOCIATION Applying Lean Methodology to Manage Operational Turnarounds Oxford Hotel, Denver, CO Contact: http://www.turnaround.org/ October 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Annual Meeting and Networking Reception 100th Bomb Group & Banquet Facility Cleveland, OH Contact: http://www.turnaround.org/ October 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION A View from the Bench: A Panel Discussion Recent Developments in Bankruptcy Sheraton at Four Seasons, Greensboro, NC Contact: http://www.turnaround.org/ October 25, 2006 BEARD AUDIO CONFERECES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions, Review Risks, Examine Latest Decisions Affecting Directors, Advisors and Lenders of Troubled Companies Contact: http://www.beardaudioconferences.com/ 240-629-3300 October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event "The Latest in Fraud Investigations" with guest speaker Chad Cretney of PricewaterhouseCoopers Ernst & Young Tower Calgary, AB Contact: http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds - Expanded Financing Opportunities in Business Turnarounds Arizona Contact: http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Coach Dan Reeves Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ October 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION BK/TMA Golf Tournament Orange Tree Golf Resort, AZ Contact: 623-581-3597 or http://www.turnaround.org/ October 30-31, 2006 Distressed Debt Summit: Preparing for the Next Default Cycle Financial Research Associates LLC Helmsley Hotel, New York, NY Contact: http://www.frallc.com/ October 31, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ October 31 - November 1, 2006 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Conference San Francisco, California Contact: http://www.iwirc.com/ November 1, 2006 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS AIRA/NCBJ Dessert Reception Marriott, San Francisco, CA Contact: 415-896-1600 or http://www.airacira.org/ November 1, 2006 TURNAROUND MANAGEMENT ASSOCIATION Halloween Isn't Over! - Ghosts of turnarounds past who remind you about what you should have done differently Portland, Oregon Contact: http://www.turnaround.org/ November 1-4, 2006 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges San Francisco, California Contact: http://www.ncbj.org/ November 2, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA UK Annual Conference Millennium Gloucester Hotel, London, UK Contact: http://www.turnaround.org/ November 2-3, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 3, 2006 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS AIRA/NCBJ Breakfast Program Marriott, San Francisco, CA Contact: 415-896-1600 or http://www.airacira.org/ November 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Marriott, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 7-8, 2006 EUROMONEY 5th Annual Distressed Debt Investment Symposium Hyatt Regency, London, UK Contact: http://www.euromoneyplc.com/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon & Guest Speaker, Joel Naroff to discuss the economy, lending and M&A markets Davio's Northern Italian Steakhouse, Philadelphia, PA Contact: http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia National Conference Sydney, Australia Contact: http://www.turnaround.org/ November 9, 2006 TURNAROUND MANAGEMENT ASSOCIATION Webinar "Second Lien Financing or Investing: Are There Opportunities for You?" TMA HQ, Chicago, IL Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program St. Louis, Missouri Contact: 815-469-2935 or http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program - Cost Containment Strategies St. Louis, MO Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Cocktail Reception Honoring the Bankruptcy Benches of the Southern & Eastern Districts of New York and New Jersey Association of the Bar of the City of New York New York, NY Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Reception with NYIC/NYTMA TBA, New York Contact: 908-575-7333 or http://www.turnaround.org/ November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ November 15-16, 2006 EUROMONEY INSTITUTIONAL INVESTOR Asia Capital Markets Forum Island Shangri-La, Hong Kong Contact: http://www.euromoneyplc.com/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Duquesne Club, Pittsburgh, Pennsylvania Contact: http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, WA Contact: 403-294-4954 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Life in the Bankruptcy Court with BAPCPA, A View from The Bench Oxford Hotel, Denver, CO Contact: http://www.turnaround.org/ November 16-17, 2006 STRATEGIC RESEARCH INSTITUTE 8th Annual West Distressed Debt Investing Forum Venetian Resort Hotel Casino, Las Vegas, NV Contact: http://www.srinstitute.com November 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Harry Nolan, Author of Airline without a Pilot - Lessons in Leadership Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ November 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Martini Party Vancouver, British Columbia Contact: 403-294-4954 or http://www.turnaround.org/ November 23-24, 2006 EUROMONEY CONFERENCES 5th Annual China Conference China World Hotel Beijing, China Contact: http://www.euromoneyconferences.com/ November 27-28, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Thirteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Essex House Hotel - New York Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint TMA Florida/ACG Tampa Bay Luncheon Buying and Selling a Troubled Company Centre Club, Tampa, FL Contact: http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Special Program TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Industry Trends Jasna Polana, Princeton, NJ Contact: http://www.turnaround.org/ November 30, 2006 EUROMONEY CONFERENCES Euromoney/DIFC Annual Conference Managing superabundant liquidity Madinat Jumeirah, Dubai Contact: http://www.euromoneyconferences.com/ November 30-December 2, 2006 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Hyatt Regency at Gainey Ranch, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ December 5, 2006 EUROMONEY CONFERENCES CFO Forum Hyatt Regency, Hangzhou, China Contact: http://www.euromoneyconferences.com/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Dinner Portland, Oregon Contact: 503-223-6222 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Cash Management After The Storm: Near-Term Planning for Long-Term Business Success Sheraton, Metairie, LA Contact: http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lender's Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ January 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 17-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Wynn, Las Vegas, NV Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 25-27, 2007 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Hyatt Regency, Denver, CO Contact: 1-703-739-0800; http://www.abiworld.org/ February 25-26, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Marriott Park City, UT Contact: http://www2.nortoninstitutes.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, WY Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or www.turnaround.org July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ December 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, NV Contact: http://www.airacira.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Market Opportunities Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E- Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Contact: http://www.beardaudioconferences.com 240-629-3300 The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 * * *