/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061026.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 26, 2006, Vol. 7, No. 213 Headlines A U S T R I A ANNA STABRAWA: Claims Registration Period Ends October 27 GERHARD OSWIRT: Claims Registration Period Ends October 30 MORINA BEKIM: Vienna Court Orders Business Shutdown B E L A R U S VALEANT PHARMA: 10-Q Filing Delay Spurs S&P's Watch Negative B E L G I U M FERRO CORP: Ends Talks on Specialty Plastics Business Sale FERRO CORP: Earns US$16.2 Million in Year Ended Dec. 31, 2005 B U L G A R I A IMAX CORP: S&P Removes B- Rating from Developing Watch D E N M A R K SUN MICROSYSTEMS: Moody's Assigns Loss-Given-Default Ratings F R A N C E BORALEX INVESTMENT: Moody's Rates US$80-Mln Term Loan at Ba3 XEROX CORP: Earns US$536 Million in Quarter Ended September 30 XEROX CORPORATION: Moody's Assigns Loss-Given-Default Ratings G E R M A N Y ALLCO ALLRATH: Claims Registration Ends November 1 AUTOHAUS SIEBELS: Claims Registration Ends November 1 B.B. BAU: Claims Registration Ends October 31 BOMBARDIER INC: Slashes Jet Production Rates & Cuts Workforce CLUB IN FORM: Claims Registration Ends November 1 CREATIV OPTIC: Claims Registration Ends October 31 ELEKTRO-BUEHRING: Claims Registration Ends November 1 MEDIEN VERTRIEB: Claims Registration Ends Nov. 1 MOBATEC GMBH: Claims Registration Ends October 31 MODEBOUTIQUE FREESTYLE: Claims Registration Ends Nov. 1 MSB-HOCHBAU: Claims Registration Ends October 31 NOTO BPCE: Creditors' Meeting Slated for October 31 OKAY EDV: Claims Registration Ends October 31 OSTERHOFF TRANSPORT: Claims Registration Ends Nov. 1 R. BOETEL: Claims Registration Ends November 1 SCHREITERER HEIZUNGSANLAGENBAU: Claims Registration Ends Nov. 1 SPH-ELEKTROTECHNIK: Claims Registration Ends November 1 VALEV BAUTRAGER: Creditors' Meeting Slated for October 31 W & S DRUCK: Claims Registration Ends November 1 WESTLB AG: Moody's Changes Outlook on D- FSR to Positive WILLI SCHACHT: Claims Registration Ends November 1 G R E E C E TECHNICAL OLYMPIC: Moody's Cuts Rating on Sr. Unsec. Notes I R E L A N D WESTLB AG: Moody's Changes Outlook on D- FSR to Positive I T A L Y ALITALIA SPA: Eyes Alliance with Air France-KLM, Reports Say FERRO CORP: Ends Talks on Specialty Plastics Business Sale FERRO CORP: Earns US$16.2 Million in Year Ended Dec. 31, 2005 PARMALAT SPA: 35,000 Plaintiffs to Join Parma Civil Suit K A Z A K H S T A N AINABULAK LLP: East Kazakhstan Court Starts Bankruptcy Procedure AKRAB KOMHOZ: Creditors Must File Claims by Nov. 22 AMETA LLP: Proof of Claim Deadline Slated for Nov. 21 INJENERNO-STROITELNAYA: Creditors' Claims Due Nov. 17 JANA JOL: Karaganda Court Opens Bankruptcy Proceedings NADEJDA-98 LLP: Kostanai Court Begins Bankruptcy Proceedings SPES LLP: Proof of Claim Deadline Slated for Nov. 17 TRANSIT TRANS: Almaty Court Commences Bankruptcy Proceedings TUTYNUSHY SAUDA: Claims Filing Period Ends Nov. 21 K Y R G Y Z S T A N INTER TRADE: Proof of Claim Deadline Slated for Dec. 13 N E T H E R L A N D S DALRADIAN EUROPEAN: S&P Rates EUR13.13-Mln Class E Notes at BB- P O R T U G A L INTERTAPE POLYMER: Provides Update on Ongoing Cost Reductions R O M A N I A QUANTUM CORP: Moody's Assigns Loss-Given-Default Ratings R U S S I A BALASHOVSKIY: Court Names S. Khoryukov as Insolvency Manager BUILDER LLC: Court Names A. Nikolskiy as Insolvency Manager BUILDING COMPANY: Court Starts N. Shalaev as Insolvency Manager DOROGOBUZHSKIY CHEESE: Court Names S. Prudnikov to Manage Assets ENGINEERING OIL: Court Names S. Vinnik as Insolvency Manager KASHIN-AGRO-PROM-KHIMIYA: Bankruptcy Hearing Slated for Dec. 13 KURKINSKIY REFINERY: Court Names V. Kozlov as Insolvency Manager LANSKIY WOOD-PROM-KHOZ: Court Names S. Vinnik to Manage Assets LYAGUSHKINSKOYE CJSC: Bankruptcy Hearing Slated for Jan. 17 MIKHAYLOVSKIY MEAT: Altay Bankruptcy Hearing Slated for Feb. 5 RODINSKIY CHEESE: Court Names V. Pitsun as Insolvency Manager SEVERSTAL OAO: Launches Global Stock Offering SIBACADEMFINANCE PLC: Moody's Assigns Low-B Debt Ratings STEPNOYE OJSC: Novosibirsk Bankruptcy Hearing Slated for Jan. 29 TAGANKA CAR: Moody's Puts Ba2 Rating on US54.8-Mln Class C Notes TOMARINSKAYA TIMBER: Court Names L. Sorokina to Manage Assets VARNENSKIY BUTTER: Court Names V. Dubovoy as Insolvency Manager VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month YUKOS OIL: Valuer Says Assets Could Be Sold at 10%-90% Discount ZENIT CAPITAL: Fitch Gives Final B Rating to US$200 Mln-Notes * Fitch Rates Nizhniy Novgorod Region at Foreign Currency B+ S L O V E N I A VALEANT PHARMA: 10-Q Filing Delay Spurs S&P's Watch Negative S P A I N ALLIANCE ATLANTIS: Completes Strategic Review of MPD Holding ALLIANCE ATLANTIS: Moody's Puts Low-B Ratings Under Review FONDO DE TITULIZACION: Fitch Junks EUR19.8 Mln Class E Notes GC FTGENCAT: Fitch Junks EUR4.5 Million Class D Notes ASPEON INC.: Auditor Expresses Going Concern Doubt S W E D E N IKON OFFICE: Moody's Assigns Loss-Given-Default Ratings T U R K E Y IMAX CORP: S&P Removes B- Rating from Developing Watch U K R A I N E BITRADE: Kyiv Court Names LLC Sigma-Resurs as Liquidator DELTAFIN: Court Names Volodimir Barantsov as Liquidator FINMARKET: Court Names Volodimir Barantsov as Insolvency Manager FODOSIJSKA TOBACCO: AR Krym Court Starts Bankruptcy Supervision NEOO LLC: Court Names Volodimir Barantsov as Insolvency Manager ORION LLC: Odessa Court Starts Bankruptcy Supervision Procedure PRAVEX-BANK: Moody's Assigns B2 Rating on UAH50-Mln Bond Issue RADAR LV: Lviv Court Starts Bankruptcy Supervision Procedure SCIENTIFIC-PRODUCTION COMPLEX: Bankruptcy Supervision Starts VTORMET-SERVICE: Court Names Volodimir Barantsov as Liquidator U N I T E D K I N G D O M AMARANTH ADVISORS: Cuts 370 Jobs as Shutdown Progresses AMITY EUROPE: Creditors' Meeting Slated for October 31 BARRINGTONS FURNITURE: Creditors' Meeting Slated for Oct. 30 BATTERY SPECIALIST: Claims Filing Period Ends Nov. 11 BEESAFE PROJECTS: Liquidator Sets Dec. 7 Claims Bar Date BENJAMIN HALL: Appoints H. J. Sorsky to Liquidate Assets BOMBARDIER INC: Slashes Jet Production Rates & Cuts Workforce CHALLENGE BUSINESS: Appoints Grant Thornton as Administrators CHARTLEY STONE: Taps Liquidator from Barringtons Limited DAB2 LIMITED: Appoints Paul Michael McConnel as Administrator DMM CONTRACTING: Claims Registration Ends Nov. 7 DIRECT CARS: Hires Eileen T. F. Sale to Liquidate Assets DOLLAR ROSE: Joint Liquidators Take Over Operations ETON ROAD: Creditors' Claims Due Nov. 30 FORD MOTOR: Ditches Fidelity Magellan from 401(k) Plan FORD MOTOR: S&P Puts ABS Transaction Ratings on Watch Negative FORD MOTOR: DBRS Comments on Q3 Results & May Cut Ratings FRITH CONTENT: Brings In Joint Administrators from KPMG GENERAL MOTORS: Posts US$115 Million Net Loss in Third Quarter GOODYEAR TIRE: S&P Places B- Ratings on CreditWatch Negative INCO LTD: Companhia Vale do Rio Doce Acquires 75.7% Stake INTERIOR SYSTEMS: Names Eileen T. F. Sale to Liquidate Assets ISOFT GROUP: AIDB to Investigate Former Auditor RSM Robson KRIMSON LIMITED: Creditors Confirm Liquidator's Appointment LADBROKES PLC: S&P Removes BB Debt Ratings from Watch Negative LONGMANOR PROJECTS: Creditors' Meeting Slated for October 30 LOOK 2: Creditors Confirm Liquidators' Appointment MANSARD MORTGAGES: Moody's Rates Class B2 Notes at (P)Ba2 NORMAN OFFER: Appoints Rothman Pantall as Administrators NPR LIMITED: Names Gerald Irwin as Administrator SEAGATE TECHNOLOGY: Moody's Assigns Loss-Given-Default Ratings SEVERSTAL OAO: Launches Global Stock Offering SMITH & SAMUEL: K. B. Stout Leads Liquidation Procedure STUDLEY CONTRACTORS: Taps Poppleton & Appleby as Administrators SWINFAST LIMITED: Creditors' Meeting Slated for October 31 VEDARLO LIMITED: Taps Joint Administrators from Cresswell VISION CORPORATION: Appoints Mark Reynolds as Liquidator VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month WATERSHED LIMITED: Appoints Vantis to Administer Assets XEROX CORP: Earns US$536 Million in Quarter Ended September 30 XEROX CORPORATION: Moody's Assigns Loss-Given-Default Ratings * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= ANNA STABRAWA: Claims Registration Period Ends October 27 --------------------------------------------------------- Creditors owed money by LLC Anna Stabrawa (FN 130935b) have until Oct. 27 to file written proofs of claims to court- appointed property manager Christian Bachmann at: Dr. Christian Bachmann c/o Dr. Eva-Maria Bachmann-Lang Opernring 8 1010 Vienna, Austria Tel: 512 87 01 Fax: 513 82 50 E-mail: bachmann.rae@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Nov. 9 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 12 (Bankr. Case No. 5 S 128/06t). Eva-Maria Bachmann- Lang represents Dr. Bachmann in the bankruptcy proceedings. GERHARD OSWIRT: Claims Registration Period Ends October 30 ---------------------------------------------------------- Creditors owed money by LLC Gerhard Oswirt taraflex (FN 169311m) have until Oct. 30 to file written proofs of claims to court- appointed property manager Otto Werschitz at: Dr. Otto Werschitz Neutorgasse 47/1 8010 Graz, Austria Tel: 0316/820620-0 Fax: 0316/820620-4 E-mail: officecgo@masseverwaltung.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 14 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Graz Hall K Room 205 2nd Floor Graz, Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Sept. 12 (Bankr. Case No. 40 S 43/06f). MORINA BEKIM: Vienna Court Orders Business Shutdown --------------------------------------------------- The Trade Court of Vienna entered an order Sept. 11 shutting down the business of KEG Morina Bekim (FN 251630w). Court- appointed property manager Eberhard Wallentin 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. Eberhard Wallentin Porzellangasse 4-6 1090 Vienna, Austria Tel: 313 74-0 Fax: 313 74-80 E-mail: office@dsw.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 4 (Bankr. Case No. 45 S 47/06z). ============= B E L A R U S ============= VALEANT PHARMA: 10-Q Filing Delay Spurs S&P's Watch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on Costa Mesa, CA.-based Valeant Pharmaceuticals International, including Valeant's 'BB-' corporate credit rating, on CreditWatch with negative implications. "The rating actions follow the specialty pharmaceutical company's announcement that it does not expect to file its Form 10-Q for third-quarter 2006 by the filing date," said Standard & Poor's credit analyst Arthur Wong. "The delay is attributed to the company's need to restate its financials, possibly as far back as 1997, due to errors in accounting for stock option grants." A Valeant board of directors-appointed special committee is still conducting its review, and the magnitude of the restatements has not yet been determined. Valeant was already subject to an informal SEC probe regarding the issue. The failure to file its Form 10-Q on time would constitute a default of reporting requirements under its convertible and high-yield note agreements that if not cured in 60 days could result in an acceleration of the amounts outstanding under those notes. "Standard & Poor's will monitor the cost and ability of Valeant to cope with this situation before resolving the CreditWatch listing," Mr. Wong said. ============= B E L G I U M ============= FERRO CORP: Ends Talks on Specialty Plastics Business Sale ---------------------------------------------------------- Ferro Corp. has discontinued discussions with Wind Point Partners regarding the sale of its Specialty Plastics business. "We did not feel that we could reach an agreement that provided Ferro shareholders with the full value of this business," said James Kirsch, Ferro President and Chief Executive Officer. "We will continue to operate the Specialty Plastics business, and expect it to remain a positive contributor to Ferro's operations. As we go forward, we will continue to pursue portfolio realignment activities that we believe best serve the interests of our shareholders and the growth objectives of the Company." Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE:FOE) - - http://www.ferro.com/-- produces performance materials for manufacturers, including coatings and performance chemicals. The Company has operations in 20 countries and has approximately 6,800 employees globally including Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 2, 2006, Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. FERRO CORP: Earns US$16.2 Million in Year Ended Dec. 31, 2005 ------------------------------------------------------------- Ferro Corporation reported US$16.2 million of net income for the year ended Dec. 31, 2005, compared to US$24.9 million of net income earned in the prior year. Sales from continuing operations for the year ended Dec. 31, 2005, of US$1,882.3 million were 2.1% higher than for the comparable 2004 period. Improved pricing and more favorable product mix in North America, Asia-Pacific and Latin America were the primary drivers for the revenue gain. Weakness in the market for multiplayer capacitors depressed unit demand and revenues, particularly in the first half of 2005. On a consolidated basis, the impact of strengthening foreign currencies versus the U.S. dollar had only a minimal positive impact on revenues. The Company's balance sheet at Dec. 31, 2005, showed US$1.66 billion in total assets, US$1.17 billion in total liabilities, total shareholders' equity of US$468,091 and Series A convertible preferred stock of US$20.4 million. At Dec. 31, 2005, the Company had a US$300 million revolving credit facility that was scheduled to expire in September 2006, as well as US$200 million of senior notes and US$155 million of debentures outstanding with varying maturities, the majority of which extended beyond 2010. The Company also had an accounts receivable securitization facility under which the Company could receive advances of up to US$100 million, subject to the level of qualifying accounts receivable. Subsequent to Dec. 31, 2005, the Company replaced or modified its existing facilities to secure future financial liquidity. The US$300 million revolving credit facility was replaced by a US$700 million credit facility, consisting of a US$250 million multi-currency senior revolving credit facility expiring in 2011 and a US$450 million senior delayed-draw term loan facility expiring in 2012. In addition, the Company extended its US$100 million accounts receivable securitization facility for up to three additional years. The Company expects to file its 2005 reports on Form 10-Q for the quarters ending March 31, June 30 and Sept. 30, 2005 by the end of October. With the completion of the 2005 financial filings, the Company will then focus on the completion of its Form 10-Q filings for the first three quarters of 2006, and expects to file these reports with the SEC by the end of 2006. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?1362 Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE:FOE) - - http://www.ferro.com/-- produces performance materials for manufacturers, including coatings and performance chemicals. The Company has operations in 20 countries and has approximately 6,800 employees globally including Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 2, 2006, Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. =============== B U L G A R I A =============== IMAX CORP: S&P Removes B- Rating from Developing Watch ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its ratings, including the 'B-' corporate credit rating, on IMAX Corp. and removed them from CreditWatch, where they were placed on March 10 with developing implications. The outlook is negative. As of June 30, 2006, the company had US$160 million of debt. "The rating action is based on management having discounted the likelihood of IMAX being acquired by a strategic buyer," said Standard & Poor's credit analyst Tulip Lim. "However, the company is continuing talks with financial buyers." As a result, Standard & Poor's no longer sees the potential for an upgrade arising from a strategic transaction, and the possibility of a downgrade now appears less likely given that management has been reviewing offers for a while without concluding a transaction. The rating reflects the modest size and uncertain long-term earnings potential of the company's niche market relative to its debt burden, weak discretionary cash flow, and limited liquidity. These concerns overshadow: -- IMAX's position as a specialized provider of giant-screen projection, camera, and sound systems; -- the recurring revenue provided by the installed base of about 280 IMAX theater systems; and -- a measure of near-term revenue visibility provided by the company's backlog of pending system installations. ============= D E N M A R K ============= SUN MICROSYSTEMS: 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 Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Sun Microsystems Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings to these securities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$550 million Sr. Unsec. Notes Ba1 Ba1 LGD5 76% Shelf-Sr Unsec. (P)Ba1 (P)Ba1 LGD5 76% Shelf-Subordinated (P)Ba2 (P)Ba2 LGD6 99% Shelf-Preferred (P)Ba3 (P)Ba2 LGD6 99% 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 Santa Clara, California, Sun Microsystems Inc. -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. In Europe, the company maintains maintains operations facilities and/or sales offices in the United Kingdom, Hungary, Iceland, Sweden, Turkey, Ukraine, Croatia, Czech Republic, Denmark, Slovakia, Slovenia, Switzerland, and The Netherlands. =========== F R A N C E =========== BORALEX INVESTMENT: Moody's Rates US$80-Mln Term Loan at Ba3 ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 rating to Boralex Investment LP's proposed US$80 million senior secured term loan due October 2013. The rating outlook is stable. Proceeds from the proposed term loan will be used to fund a 12-month debt service reserve account (US$6.8 million); a maintenance reserve (US$5 million); and planned capital expenditures at Boralex's Livermore Falls biomass facility (US$15 million); as well as to repay existing indebtedness at Boralex's Stratton biomass facility (US$4.5 million) and pay transaction fees and expenses (US$6.7 million). Remaining proceeds may be distributed by Boralex to its Canadian-based parent Boralex Inc. or used for general corporate purposes in the U.S. or abroad. The term loan is non-recourse to Boralex Inc. The Ba3 rating acknowledges Boralex's diversified portfolio of power stations and revenue stream. The portfolio consists of five wood-residue generating facilities (the biomass facilities) with 186 megawatts of aggregate generating capacity and five hydroelectric facilities with 22.7 megawatts of aggregate generating capacity. These facilities are located in Maine and New York and support the sale of power and ancillary services to three established and distinct power markets (NYISO, NEPOOL and the Maritimes Control Area). These facilities are operational, have life cycles that extend beyond the tenor of the proposed financing, and have demonstrated reasonably reliable operating histories. Furthermore the assets are unencumbered from restrictions that would prevent Boralex from utilizing the cash generated through operation of these assets. Boralex's biomass facilities primarily use wood chips and mill residue as feed stocks and qualify through December 31, 2009 for Production Tax Credits (PTC's). As part of this proposed transaction, Boralex will monetize the PTCs with an Aa2 rated financial institution. The monetization is expected to generate approximately US$30 million of cash flow in the aggregate through Dec 31, 2009 of which US$15 million will be paid upon closing of the transaction. The PTC cash flows, excluding the US$15 million paid upfront, will be deposited into a restricted revenue account and flow through a waterfall structure for the benefit of Boralex's lenders. Other sources of revenue include the sale of power under existing purchase power agreements, the sale of renewable energy credits (REC's), the sale of capacity and the sale of power into wholesale power markets. The primary purchase power agreement is with a subsidiary of WPS Resources Corporation for power generated by two of Boralex's biomass facilities with a combined generated capacity of 76 megawatts. These facilities are located in Maine and the WPS subsidiary uses the purchased power to meet its obligations as a standard offer provider in Northern Maine. The involved parties are currently finalizing negotiations to extend the power purchase agreement beyond Dec. 31. An important element of Boralex's business plan is to be an approved renewable energy producer and to generate incremental revenue by selling allotted REC's. The only Boralex facility to generate revenue through the sale of REC's, both on a spot basis and under contractual arrangements, is the Stratton facility. Moody's expects that the Chateaugay and Livermore Falls facilities will generate REC revenue during the tenor of the financing. That being said, the ultimate price received for REC's is highly dependent on developing markets that to date have shown considerable variability in pricing. In assigning the rating, Moody's also considered structural features, including a US$6.8 million cash funded debt service reserve account that will be sized to provide 12-months of debt service, a US$5 million cash funded maintenance reserve account and an annual 85% cash sweep of excess cash flow (decreasing to 75% after Dec. 31, 2009) with proceeds to be used for debt prepayment above the scheduled amortization of 1% per annum. Moody's views these structural features positively, as they provide some degree of protection against fluctuations in commodity prices and costs associated with unexpected outages. Limiting factors for the rating include a modest amount of contractual cash flow relative to the generating capacity of the portfolio, the reliance on cash flow from the sale of un- contracted energy and capacity, and the biomass facilities' relatively high cost of production. Furthermore, the cost for wood residue has been increasing due to a combination of higher transportation costs and tightened supply. Boralex's wood residue purchasing position is largely unhedged beyond 2007. Boralex's biomass facilities require on average 1.6-1.7 tons of wood residue to generate a megawatt hour of electricity. At an average cost of US$23.00 per ton of wood residue, the biomass facilities need power prices to be approximately US$40 per megawatt hour to cover production costs. While current market conditions for power prices in the northeast United States are generally favorable, one facility was temporarily mothballed as recently as 2004 due to poor market conditions. Boralex's base case financial forecast model, which assumes relatively robust market prices for power and capacity, shows full repayment by 2010. The actual size of refinancing however will largely be determined by the prevailing market prices for the sale of Boralex's un-contracted capacity and energy. Moody's analysis focused on historical cash flow generation, assumed a likelihood of extension of certain existing power purchase agreements, and assessed scenarios for the timing and pricing of renewable energy credits and a gradual decline in power prices. Analysis that assumed gradual decline in the wholesale power market and increased REC revenue suggests that the refinancing need in 2013 is likely to be manageable, given the expected cash flow generation from the hydroelectric facilities. Moody's analysis considered the risk that Boralex could be drawn into bankruptcy in the event of a bankruptcy filing by its parent Boralex Inc., through substantive consolidation or a voluntary filing. The ratings considered that Boralex is a separate legal entity whose assets, cash receipts, records, and accounting are to be maintained separately from those of Boralex Inc. One of the three managers constituting the Board of Control is required to be independent, and an affirmative vote of the independent director will be required for certain actions, including a voluntary bankruptcy filing. The stable outlook reflects currently favorable market conditions and expected cash flows associated with the monetization of PTC's. The rating is predicated upon the expectation that final documentation will be consistent with Moody's current understanding of the transaction structure. Boralex Investment LP is a wholly owned subsidiary of Boralex Inc. Boralex Inc. is based in Montreal, Canada, and owns and operates 20 power generation sites in the northeastern United States, Canada and France that have a combined installed capacity of 315 megawatts. XEROX CORP: Earns US$536 Million in Quarter Ended September 30 -------------------------------------------------------------- Xerox Corporation reported third-quarter 2006 net income of US$536 million, compared with US$63 million of net income earned in the equivalent prior year quarter ended Sept. 30, 2005. The company's third-quarter earnings this year include a previously announced tax benefit of 45 cents per share partially offset by restructuring of 7 cents per share and a litigation charge of 7 cents per share. "Through earnings expansion, annuity growth and a strong financial position that allows for stock buyback and acquisitions, we exceeded our expectations this quarter and are delivering on our commitment to build shareholder value," said Anne M. Mulcahy, Xerox chairman and chief executive officer. Total revenue of US$3.8 billion grew 2% in the third quarter. Post-sale and financing revenue, which represents about 75% of Xerox's total revenue, increased 3%, largely driven by 4% post- sale growth from digital systems. Total revenue and post-sale revenue included a currency benefit of 1 percentage point. "The leading indicators of our growth strategy - which is all about boosting our annuity stream through growth in digital, services and color - continued to trend positively in the third quarter," added Ms. Mulcahy. "Install activity was up for Xerox digital systems in key markets like office multifunction and production color. Our expertise in document management flowed through to post-sale growth of 7% from global services. And, our broad portfolio of color technology fueled a 16% increase in post-sale revenue from color." About 48% of the company's equipment sales in the third quarter were from color products, a year-over-year increase of 7 points. Total revenue from Xerox's industry-leading color systems grew 16% in the third quarter and now represents 36% of the company's revenue, up 4 points from a year ago. The number of pages printed on Xerox color systems grew 35% in the quarter. While equipment sale revenue was down 1% in the third quarter including a 1 point benefit from currency, installs of key products like the Xerox iGen3 Digital Production Press and DocuColor systems as well as WorkCentre multifunction systems drove up activity, fueling future gains in the company's post- sale revenue. Signings for document management services were up 16% year to date and were about flat in the third quarter as the company experienced longer lead times for finalizing multi-year contracts. Xerox's production business provides commercial printers and document-intensive industries with high-speed digital printing and services that enable on-demand, personalized printing. Total production revenue increased 3% in the third quarter including a 2 point currency benefit. Installs of production black-and-white systems declined 6% with growth in light production only partially offsetting declines in higher-end production printing. Production color installs grew 107%, reflecting accelerated activity for the iGen3 and continued strong demand for the DocuColor 5000 and 7000/8000 series as well as the DocuColor 240/250 multifunction system. Earlier this month, Xerox made several announcements that strengthen its leadership in the production market including the acquisition of XMPie, a leading provider of variable information software; advanced finishing capabilities for the iGen3 and DocuTech 180 Highlight Color system; and a dual-engine printer that sets a new speed record for two-sided, cut-sheet black-and- white printing. Xerox's office business provides document technology and services for businesses of any size. Total office revenue was flat in the third quarter including a 2 point currency benefit. Installs of office black-and-white systems were up 10%, largely driven by 19% growth from Xerox's mid-range line of WorkCentre multifunction products. In office color, installs of multifunction systems were up 46% reflecting strong demand for the color WorkCentre systems launched in May and the continued success of the office version of the DocuColor 240/250. Expanding its competitive offerings for small and medium-sized businesses, Xerox launched in September the WorkCentre 4150, its fastest-ever desktop multifunction system. The company also cited continued improvement in its developing markets operations. Total revenue grew 7% in DMO. Gross margins were 40.2% in the third quarter, a year-over-year decline of 1.1 points. The decline was primarily due to product mix and equipment pricing as well as lower margins in Xerox's global services business as the company incurred upfront costs to support new multi-year managed services contracts. Selling, administrative and general expenses were 25.6% of revenue, a year-over-year improvement of 1.3 points. Xerox generated operating cash flow of US$530 million in the third quarter and closed the quarter with US$1.5 billion in cash and short-term investments. Since launching its stock buyback program last October, the company has repurchased about 78 million shares, totaling US$1.1 billion of the US$1.5 billion program through the third quarter of this year. Also during the quarter, Xerox closed on the US$175 million cash acquisition of Amici LLC, a provider of electronic-discovery services that support litigation and regulatory compliance. In early October, Xerox announced the US$54 million cash acquisition of XMPie, which is expected to close in the next few weeks. Xerox expects fourth-quarter 2006 earnings in the range of 21-24 cents per share, including restructuring charges of about 13 cents per share. Excluding restructuring, Xerox expects fourth-quarter adjusted EPS of 34-37 cents per share. "We expect our fourth-quarter performance will keep us on track to deliver our full-year earnings expectations," said Ms. Mulcahy. About Xerox Headquartered in Stamford, Connecticut, Xerox Corporation (NYSE: XRX) -- http://www.xerox.com/-- develops, manufactures, markets, services, and finances document equipment, software, solutions, and services worldwide. It offers digital monochrome and color systems for customers in the graphic communications industry and enterprises, as well as various prepress and post- press options. Xerox Corporation markets its products through direct sales force, as well as through a network of independent agents, dealers, value-added resellers, and systems integrators. * * * As reported in the Troubled Company Reporter on Aug. 10, 2006, Fitch upgraded Xerox Corp.'s Issuer Default Rating to 'BBB-' from 'BB+', Senior unsecured debt to 'BBB-' from 'BB+' and Trust preferred securities to 'BB' from 'BB-'. In addition, Fitch affirmed the senior unsecured bank credit facility at 'BBB-' and withdrawn the secured term loan rating of 'BBB-' since the secured term loan was repaid and the secured bank facility terminated concurrently with the effectiveness of the new unsecured credit facility. The Rating Outlook is Stable. As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on Stamford, Connecticut-based Xerox Corp. and related entities to 'BB+' from 'BB-', and removed it from CreditWatch, where it was placed with positive implications on Jan. 26, 2006. The upgrade reflected substantial recent debt reductions, good cash flow and growth in equipment sales. The outlook is stable. As reported in the Troubled Company Reporter on Sept. 21, 2005, Moody's Investors Service revised the rating outlook of Xerox Corporation and supported subsidiaries to positive from stable. Moody's previously raised the senior implied rating of Xerox and its financially supported subsidiaries to Ba1 from Ba3. The action was prompted by Xerox's significant debt and leverage reduction over the last year, stable operating profit and free cash flow generation, and the prospects for further strengthening of its credit metrics and overall financial flexibility. XEROX 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. Technology Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Xerox Corp. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings to these securities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$700 million Sr. Notes due 2016 Ba2 Ba1 LGD3 48% US$620 million 9.75% Sr. Notes due 2009 Ba2 Ba1 LGD3 48% US$688 million 7.125% Sr. Notes due 2010 Ba2 Ba1 LGD3 48% US$542 million 7.625% Sr. Notes due 2013 Ba2 Ba1 LGD3 48% US$50 million 6.875% Sr. Notes due 2011 Ba2 Ba1 LGD3 48% US$1.25 billion Unsec. Revolving Credit Facility Ba2 Ba1 LGD3 48% US$752 million Sr. Notes due 2011 Ba2 Ba1 LGD3 48% US$251 million Notes due 2016 Ba2 Ba1 LGD3 48% US$255 million Yen Notes due 2007 Ba2 Ba1 LGD3 48% US$75 million Notes due 2012 Ba2 Ba1 LGD3 48% US$60 million Notes due 2013 Ba2 Ba1 LGD3 48% US$50 million Notes due 2014 Ba2 Ba1 LGD3 48% US$25 million Notes dye 2018 Ba2 Ba1 LGD3 48% US$27 million Notes due 2008 Ba2 Ba1 LGD3 48% US$260 million Euro Senior Notes due 2009 Ba2 Ba1 LGD3 48% Medium Term Notes US$166 million Ba2 Ba1 LGD3 48% Trust Preferred Ba3 Ba2 LGD6 94% Shelf-Sr. Unsec. (P)Ba2 (P)Ba1 LGD3 48% Shelf-Subordinated (P)Ba3 (P)Ba2 LGD6 94% Shelf-Preferred (P)B1 (P)Ba2 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 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 Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/ -- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. In Europe, Xerox maintains operations in Albania, Austria, Cyprus, Estonia, France, Germany, Turkey, Italy, The Netherlands, the United Kingdom, among others. ============= G E R M A N Y ============= ALLCO ALLRATH: Claims Registration Ends November 1 -------------------------------------------------- Creditors of ALLCO Allrath & Klingbeil GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Hendrik A. Koenemann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 1 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwarzenbek Hall 3 Moellner Str. 20 Schwarzenbek, 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 Schwarzenbek opened bankruptcy proceedings against ALLCO Allrath & Klingbeil GmbH on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ALLCO Allrath & Klingbeil GmbH Attn: Uwe Allrath and Jan Klingbeil, Managers Lichterfelder Road 5 A 21502 Geesthacht, Germany The administrator can be contacted at: Hendrik A. Koenemann Marie-Curie-Road 12 21337 Lueneburg, Germany AUTOHAUS SIEBELS: Claims Registration Ends November 1 ----------------------------------------------------- Creditors of Autohaus Siebels e.K. have until Nov. 1 to register their claims with court-appointed provisional administrator Stefan Meyer. Creditors and other interested parties are encouraged to attend the meeting at 8:15 a.m. on Dec. 1 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Aurich Room 018 Schlossplatz 2 26603 Aurich, 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 Aurich opened bankruptcy proceedings against Autohaus Siebels e.K. on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Autohaus Siebels e.K. Attn: Thomas Siebels, Manager Emder Road 5 26605 Aurich, Germany The administrator can be contacted at: Uwe Kuhmann Schuesselkorb 3 D-28195 Bremen, Germany Tel: 0421/330610 Fax: 0421/3306110 B.B. BAU: Claims Registration Ends October 31 --------------------------------------------- Creditors of B.B. Bau GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Jochen Draenkow. Creditors and other interested parties are encouraged to attend the meeting at 8:55 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Area 283 2nd Floor Main House (New Building) Heinitzstrasse 42 58097 Hagen, 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 Hagen opened bankruptcy proceedings against B.B. Bau GmbH on Sept. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: B.B. Bau GmbH Attn: Zeljko Predojevic, Manager Breslauer Str. 8 58762 Altena, Germany The administrator can be contacted at: Jochen Draenkow Friedrichstr. 10 58507 Luedenscheid, Germany Tel: 0235167274419 Fax: 0235167274444 BOMBARDIER INC: Slashes Jet Production Rates & Cuts Workforce ------------------------------------------------------------- Bombardier Aerospace, a unit of Borbardier Inc., is adjusting its regional aircraft production rates to reflect current market demand. As a result, the production rate for its CRJ700/900 regional jets will be reduced. This will be partly offset by an increase in the Q400 turboprop production level in response to the growing need for this type of cost efficient regional airliner, which is ideally suited to short-haul routes. Bombardier will adjust its workforce level accordingly. Total Bombardier aircraft deliveries for the current fiscal year 2006/07 are expected to remain at a similar level to that of last fiscal year 2005/06 (year ending Jan. 31, 2006), but with a different product mix. "We lead the regional aircraft market with 1,376 deliveries of our CRJ Series and 749 deliveries of our Q-Series regional aircraft, including more than 320 deliveries of our CRJ700/900 regional jets and over 350 deliveries of Q300/400 turboprop aircraft as of July 31, 2006," Pierre Beaudoin, President and Chief Operating Officer of Bombardier Aerospace, said. "Recent orders for both our larger 90-passenger CRJ900 aircraft from Northwest Airlines and My Way Airlines and 70-seat Q400 aircraft from Frontier Airlines and Luxair demonstrate that we have the right products for operators looking to take advantage of our regional aircraft's competitive operating economics." "The restructuring of the airline industry continues, with relatively few orders for regional jets in the 70- to 90-seat jet category being awarded in recent years," Mr. Beaudoin added. This situation should improve as attested by the numerous sales campaigns we are actively pursuing. However, we must be prudent and manage proactively our CRJ700/900 jets production schedule in the short term to ensure we achieve our goal of increased profitability and our success in the long term. This means making difficult but necessary decisions. We recognize the impact this decision will have on our affected employees and we will treat them fairly and with respect." Production Rates Adjustment -- for the 70-passenger CRJ700 and 90-seat CRJ900 regional jets, starting November 2006, a reduction to a rate of one aircraft produced every five days from a rate of one aircraft every three days, or a total of approximately 65 deliveries in the current fiscal year 2006/07 (year ending Jan. 31, 2007) and approximately 50 deliveries in the next fiscal year 2007/08 (year ending Jan. 31, 2008). -- for the Q-Series turboprop family, which includes the Q200, Q300 and Q400 airliners, starting in October 2006, the increase in the Q400 production level will result in a total of approximately 50 Q-Series deliveries in the current fiscal year 2006/07 and approximately 65 Q-Series deliveries in the next fiscal year 2007/08. Impact on Manpower By the end of the current fiscal year 2006/07, the workforce level at Bombardier's Toronto facility where the Q-Series and Global aircraft are manufactured will have risen by over 800 employees to reflect the increase in production levels. However, the company expects that the adjustment in the CRJ700/900 regional jets production rate will result in a workforce reduction of approximately 1,330 employees, including management, at its Montr,al-area facilities and at its Belfast site over a nine-month period starting October 2006. Total Bombardier Aerospace employment as of July 2006 was approximately 26,900. The overall workforce level has remained at a similar level since January 2004. Impact on Manpower Level by Site Layoffs Employees to leave ---- ------- ------------------ Belfast 645 Starting January 2007 Montreal-area 485 Starting late November Management and other salaried employees in Canada 200 Starting October 2006 Total 1,330 Severance costs associated with the layoffs will total approximately US$31 million US and the majority of these costs will be expensed through the normal course of operations in the third quarter of the current fiscal year 2006/07 (year ending Jan. 31, 2007). While the order level for larger regional jets is still challenging, the order book for turboprops is growing. Furthermore, orders and deliveries of business aircraft continue to rise year over year. Bombardier is ideally positioned in corporate aviation, with the broadest and most modern line-up of business aircraft to meet strong demand in North America and Europe and growing interest in the Asia-Pacific region. According to the latest General Aviation Manufacturer Association (GAMA) figures for the first half of 2006, Bombardier is a leader with 30 per cent of all business jet deliveries. About Bombardier Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment. The company is a global corporation. In Europe, it maintains operations in Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, and Austria. Its revenues for the fiscal year ended Jan. 31, 2006 were US$14.7 billion and its shares are traded in the Toronto Stock Exchange. * * * As reported in the TCR-Europe on Oct. 25, Fitch Ratings placed the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc. on Rating Watch Negative. The existing ratings are: Bombardier Inc. -- IDR BB; -- Senior unsecured debt BB; -- Bank facilities BB; and -- Preferred stock B+. Bombardier Capital Inc. -- IDR BB; and -- Senior unsecured debt BB. These ratings cover approximately US$4.2 billion of outstanding debt and preferred stock. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. Bombardier Inc.'s 6.3% Notes due 2014 also carry Moody's Investor Service's Ba2 rating and Standard & Poors' and Fitch Ratings' BB ratings. CLUB IN FORM: Claims Registration Ends November 1 ------------------------------------------------- Creditors of Club in Form GbR have until Nov. 1 to register their claims with court-appointed provisional administrator Reinhard Titz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 29 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 Club in Form GbR on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Club in Form GbR Attn: Timo Habighorst and Gordon Wriedt, Managers Stuhlrohrstrasse 10 21029 Hamburg, Germany The administrator can be contacted at: Reinhard Titz Speersort 4/6 20095 Hamburg, Germany CREATIV OPTIC: Claims Registration Ends October 31 -------------------------------------------------- Creditors of Creativ Optic GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Justus von Buchwaldt. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 17 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 Norderstedt Hall B City Hall Avenue 80 22846 Norderstedt, 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 Norderstedt opened bankruptcy proceedings against Creativ Optic GmbH on Sept. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Creativ Optic GmbH Kroegerskoppel 23 24558 Henstedt-Ulzburg, Germany Attn: Stephan Angenendt, Manager Therese-Giehse-Road 6 24568 Kaltenkirchen, Germany The administrator can be contacted at: Justus von Buchwaldt Curienstrasse 2 20095 Hamburg, Germany ELEKTRO-BUEHRING: Claims Registration Ends November 1 ----------------------------------------------------- Creditors of Elektro-Buehring Fachmarkt GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Olaf Boerner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Dec. 14, at the same venue. The District Court of Kassel opened bankruptcy proceedings against Elektro-Buehring Fachmarkt GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Elektro-Buehring Fachmarkt GmbH Attn: Guenther Damm, Manager Warburger Road 38 34246 Vellmar, Germany The administrator can be contacted at: Olaf Boerner Brueder-Grimm-Place 4 D-34117 Kassel, Germany Tel: 0561/71200-25 Fax: 0561/71200-69 E-mail: boerner@branomo.de MEDIEN VERTRIEB: Claims Registration Ends Nov. 1 ------------------------------------------------ Creditors of Medien Vertrieb Nordheide David Markgraf e.K. have until Nov. 1 to register their claims with court-appointed provisional administrator Rembert Kuebel-Heising. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 23 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg, 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 Lueneburg opened bankruptcy proceedings against Medien Vertrieb Nordheide David Markgraf e.K. on Sept. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Medien Vertrieb Nordheide David Markgraf e.K. Hittfelder Kirchweg 21 21220 Seevetal, Germany The administrator can be contacted at: Rembert Kuebel-Heising Winsener Road 14 21376 Salzhausen, Germany Tel: 04172/90900 Fax: 04172/909011 MOBATEC GMBH: Claims Registration Ends October 31 ------------------------------------------------- Creditors of MOBATEC GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Holger Zbick. Creditors and other interested parties are encouraged to attend the meeting at 8:10 a.m. on Nov. 15 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Nordhorn Hall 42 Seilerbahn 15 48529 Nordhorn, 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 Nordhorn opened bankruptcy proceedings against MOBATEC GmbH on Sept. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MOBATEC GmbH Foehnstrasse 28 48465 Schuettorf, Germany Attn: Raymond Petzold, Manager Bonhoefferstr. 36 48493 Wettringen, Germany The administrator can be contacted at: Holger Zbick Marktplatz 2-4 48712 Gescher, Germany Tel: 02542/9178-10 Fax: 02542/9178-28 E-mail: insO@zbick-deckert.de MODEBOUTIQUE FREESTYLE: Claims Registration Ends Nov. 1 ------------------------------------------------------- Creditors of Modeboutique Freestyle GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Bettina Schmudde. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Dec. 13 at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden, 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 Dresden opened bankruptcy proceedings against Modeboutique Freestyle GmbH on Sept. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Modeboutique Freestyle GmbH Spinnerei 8 01705 Freital, Germany The administrator can be contacted at: Bettina Schmudde Koenigstrasse 1 01097 Dresden, Germany Web: http://www.whitecaseinso.de/ MSB-HOCHBAU: Claims Registration Ends October 31 ------------------------------------------------ Creditors of MSB-Hochbau GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Andreas Grund. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Area 283 2nd Floor Main House (New Building) Heinitzstrasse 42 58097 Hagen, 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 Hagen opened bankruptcy proceedings against MSB-Hochbau GmbH on Sept. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MSB-Hochbau GmbH Attn: Erika Henkel, Manager Op Kerstingskamp 83 58644 Iserlohn, Germany The administrator can be contacted at: Andreas Grund Grabenstr. 28 58095 Hagen, Germany Tel: 02331-397656 Fax: +4923313976570 NOTO BPCE: Creditors' Meeting Slated for October 31 --------------------------------------------------- The court-appointed provisional administrator NOTO BPCE GmbH, Hermann Wittebrock, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:00 a.m. on Oct. 31. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Meeting Room 24 2nd Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Dec. 12, at the same venue. Creditors have until Nov. 13 to register their claims with the court-appointed provisional administrator. The District Court of Saarbruecken opened bankruptcy proceedings against NOTO BPCE GmbH on Sept. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NOTO BPCE GmbH Attn: Antonio Noto, Manager Kaiserstrasse 90 66386 St. Ingbert, Germany The administrator can be reached at: Hermann Wittebrock Pestelstrasse 4 66119 Saarbruecken, Germany OKAY EDV: Claims Registration Ends October 31 --------------------------------------------- Creditors of OKAY EDV-Vertriebs GmbH have until Oct. 31 to register their claims with court-appointed provisional administrator Robert Fliegner. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Dec. 5 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 Wuppertal Meeting Room A234 2nd Floor Isle 2 42103 Wuppertal, 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 Wuppertal opened bankruptcy proceedings against OKAY EDV-Vertriebs GmbH on Sept. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: OKAY EDV-Vertriebs GmbH Attn: Abdulkemal Kuvvet, Manager Tiefendickerstr. 10 42719 Solingen, Germany The administrator can be contacted at: Robert Fliegner Gruenewalder Str. 29-31 42657 Solingen, Germany OSTERHOFF TRANSPORT: Claims Registration Ends Nov. 1 ---------------------------------------------------- Creditors of Osterhoff Transport GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Matthias Lorenzen. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neumuenster Area B.031 Law Courts Boostedter Road 26 Neumuenster, 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 Neumuenster opened bankruptcy proceedings against Osterhoff Transport GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Osterhoff Transport GmbH Attn: Heinrich Osterhoff, Manager Lentfoehrdener Road 12 24576 Weddelbrook, Germany The administrator can be contacted at: Matthias Lorenzen Walkerdamm 17 24103 Kiel, Germany R. BOETEL: Claims Registration Ends November 1 ---------------------------------------------- Creditors of R. Boetel Messebau GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Karl-Dieter Sommerfeld. Creditors and other interested parties are encouraged to attend the meeting at 9:05 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 Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against R. Boetel Messebau GmbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: R. Boetel Messebau GmbH Attn: Ralph-Dieter Boetel, Manager Breibacher Way 110 51515 Kuerten, Germany The administrator can be contacted at: Karl-Dieter Sommerfeld Hammerweg 3 51766 Engelskirchen, Germany SCHREITERER HEIZUNGSANLAGENBAU: Claims Registration Ends Nov. 1 --------------------------------------------------------------- Creditors of Schreiterer Heizungsanlagenbau GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Rolf Rattunde. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on Nov. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 301 3rd Floor Branch Linden Road 6 14467 Potsdam, 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 Potsdam opened bankruptcy proceedings against Schreiterer Heizungsanlagenbau GmbH on Sept. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schreiterer Heizungsanlagenbau GmbH Attn: Horst Schreiterer, Manager Benzstrasse 25 14482 Potsdam, Germany The administrator can be contacted at: Rolf Rattunde Kurfuerstendamm 212 10719 Berlin, Germany SPH-ELEKTROTECHNIK: Claims Registration Ends November 1 ------------------------------------------------------- Creditors of SPH-Elektrotechnik GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Stephan Poppe. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Nov. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Halle-Saalkreis opened bankruptcy proceedings against SPH-Elektrotechnik GmbH on Sept. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SPH-Elektrotechnik GmbH Otto-Brosowski-Schacht 06308 Siersleben, Germany The administrator can be contacted at: Stephan Poppe Emil-Eichhorn-Str. 1 06114 Halle, Germany Tel: 0345/530490 Fax: 0345/5304926 VALEV BAUTRAGER: Creditors' Meeting Slated for October 31 --------------------------------------------------------- The court-appointed provisional administrator OF VALEV Bautrager und Immobilien Verwaltungs GmbH, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:10 a.m. on Oct. 31. 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 Feb. 13, 2007, at the same venue. Creditors have until Dec. 14 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against VALEV Bautrager und Immobilien Verwaltungs GmbH on Sept. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: VALEV Bautrager und Immobilien Verwaltungs GmbH Podbielskiallee 40 14195 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany W & S DRUCK: Claims Registration Ends November 1 ------------------------------------------------ Creditors of W & S Druck GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against W & S Druck GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: W & S Druck GmbH Attn: Margarete Wiener and Horst Ahl, Managers Niehler Str. 254 50735 Cologne, Germany The administrator can be contacted at: Jana Dettmer Weyerstrasse 54 50676 Cologne, Germany WESTLB AG: Moody's Changes Outlook on D- FSR to Positive -------------------------------------------------------- Moody's Investors Service changed the outlook on WestLB AG's D- financial strength rating to positive from stable based on an updated assessment of the bank's financial and strategic positioning and approach. The A1 long-term debt and deposit ratings for WestLB AG's unsecured and unsubordinated obligations in domestic and foreign currency, the Aa2 rating for liabilities qualifying for the "grandfathering" of the economic benefits of the legal guarantees of Anstaltslast and Gewaehrtraegerhaftung, which were abolished in July 2005, and the Prime-1 short-term rating were affirmed and continue to carry stable outlooks. Moody's also adjusted the long-term debt and deposit ratings for WestLB Covered Bond Bank's unsecured and unsubordinated obligations in domestic and foreign currency to A1 from Aa3 in order to align these ratings with those of WestLB AG. The Aaa ratings for WestLB Covered Bond Bank's asset covered securities, the Prime-1 short-term rating and C- FSR were affirmed. The outlook for the unsecured debt and deposit ratings is stable. Moody's said that its decision to change the outlook on WestLB's D- FSR to positive was based upon its assessment of the bank's strategic and financial shortcomings, but also the options and opportunities available to its solid management team and the latter's emphasis on developing over time a client-driven business and franchise, consistent with WestLB's competitive advantages. The rating agency added that the positive rating action equally recognized the generally more risk-averse culture that the new management and shareholders have been promoting and the meaningful progress achieved by WestLB in managing its credit, market, operational and participation risks. Simultaneously, WestLB has significantly reduced its risk profile -- notably with regard to major concentration risks -- by terminating its Principal Finance activities and by divesting most of its holdings in corporates and financial institutions, most recently through the sale of its stake in HSH Nordbank, with positive implications for its tail risks and economic capital consumption. Moody's also views positively for WestLB its efforts to strengthen the links with the Sparkassen in North Rhine- Westphalia and their significant base of retail and SME customers, but it cautioned that the benefits of such a closer co-operation were split asymmetrically between WestLB and the Sparkassen and that the financial impact of this long-term project would probably be moderate. With regard to WestLB AG's financial profile, Moody's acknowledged that management has effectively stabilized its performance and has taken key measures to strengthen its asset quality as well as its economic and regulatory capitalization, both by de-risking and de-leveraging the balance sheet and by successfully raising fresh equity from its shareholders and hybrid capital from third-party investors. Notwithstanding these improvements and WestLB's brightening financial and strategic prospects, the rating agency pointed out that it continued to regard WestLB as a bank in transition and its financial fundamentals as weak and potentially vulnerable, as captured by the D- FSR. In this respect, Moody's particularly emphasized the high operating cost base and the constraints it implies for WestLB's operating efficiency, profitability and internal capital generation and the currently low cost of risk which it does not believe to be sustainable - factors which suggest that the pace in strengthening in WestLB's financial fundamentals would be gradual. Moody's noted positively that WestLB already identified meaningful cost savings, which it would seek to achieve in the medium term. In addition, the rating agency stressed that the quality of WestLB's earnings -- driven primarily by capital markets and the group's asset/liability management -- and capital leave further room for progress. Moody's said that the positive outlook is contingent upon WestLB successfully implementing over time its strategic objective of building a client-driven franchise in its home market and in selected international capital markets, leveraging the opportunities offered by the regional Sparkassen and their retail and SME customers in terms of origination and distribution channels. In quantitative terms, the positive outlook is based upon expected future improvements in WestLB's operating efficiency and profitability and a better quality of earnings. The rating agency said that the bank would also have to strengthen the level and quality of its economic capital over the medium term. Moody's concluded by commenting on WestLB Covered Bond Bank plc, which it continues to view as being of lesser strategic importance for WestLB. In light of the unconditional and irrevocable guarantee that WestLB AG has granted for the benefit of all of WestLB Covered Bond Bank's obligations, Moody's has aligned the long- and short-term ratings for the Irish bank's unsecured and unsubordinated liabilities to those of WestLB AG at A1-P-1. The rating agency noted that the guarantee would become void when and if WestLB AG ceased to be a shareholder of WestLB Covered Bond Bank. The guarantee would, however, remain in full force and effect with respect to any obligations and liabilities incurred prior to such expiry. Headquartered in Duesseldorf, Germany, WestLB AG was established in 2002 through the split of former Westdeutsche Landesbank Girozentrale. The private-law bank is largely owned by the State of North Rhine-Westphalia (48.69% held directly and indirectly) and the associations RSGV and WLSGV (25.48% each), which represent the Sparkassen in the region. At the end of June 2006, WestLB had total assets of EUR283.1 billion and equity of EUR6.1 billion. WestLB Covered Bond Bank plc is based in Dublin, Ireland and a wholly owned subsidiary of WestLB AG. At the end of 2005, it reported total assets of EUR15.4 billion and equity of EUR209 million. WILLI SCHACHT: Claims Registration Ends November 1 -------------------------------------------------- Creditors of Willi Schacht GmbH have until Nov. 1 to register their claims with court-appointed provisional administrator Helmut Gattermann. Creditors and other interested parties are encouraged to attend the meeting at noon on Dec. 15 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neumuenster Area B.126 Law Courts Boostedter Road 26 Neumuenster, 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 Neumuenster opened bankruptcy proceedings against Willi Schacht GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Willi Schacht GmbH Attn: Klaus-Dieter Schacht, Manager Ehndorfer Road 52a 24537 Neumuenster, Germany The administrator can be contacted at: Helmut Gattermann Heilwigstr. 75 20249 Hamburg, Germany =========== G R E E C E =========== TECHNICAL OLYMPIC: Moody's Cuts Rating on Sr. Unsec. Notes ---------------------------------------------------------- Moody's Investors Service lowered the rating on the senior unsecured notes of Technical Olympic USA, Inc. to Ba3 from Ba2 and the LGD assessment and rate to LGD4, 53% from LGD3, 35% due to changes in the priority of claim in the company's capital structure. TOA changed its US$800 million revolving credit facility to secured from unsecured. The company's corporate family rating of Ba3 and the B2 rating on its senior subordinated notes remain unchanged at the current time, although all of the company's ratings remain on review for downgrade. The granting of security to the banks in the credit facility was prompted by a material adverse change with respect to TOUSA Homes, L.P., which is one of TOA's guarantor subsidiaries holding the company's investment in the Transeastern joint venture. The credit agreement was primarily amended to: -- provide collateral to secure obligations under the credit agreement; -- change the definition of material adverse change; and -- alter the definition of borrowing base. The changes to the credit agreement may increase the company's borrowing capacity modestly and provide additional liquidity. Moody's notes that the existing terms and pricing of the credit agreement are anticipated to remain intact. The company is currently assessing the possible impairment charges related to the Transeastern JV. A pre-tax charge of as much as US$141 million could be required if it were to be determined that TOA's investments in and receivables from the JV were impaired. Moody's placed TOA's ratings under review for downgrade on Sept. 27. In its review, Moody's continues to focus on TOA's support, if any, for the joint venture beyond its current investment in and loans to the joint venture of approximately US$141 million; the write down or write off potential at TOA as the joint venture considers various restructuring possibilities; and the effects on TOA's consolidated homebuilding operations in Florida. The review also focuses on TOA's ability to cut home production in order to meet the reduced demand in the market place and avoid inventory build up. Headquartered in Hollywood, Florida, Technical Olympic USA, Inc. builds and sells single-family homes largely for the move-up homebuyer. It also operates captive mortgage origination and title insurance service companies. It is 67%- owned by Technical Olympic S.A. Revenues and net income for 2005 were approximately US$2.5 billion and US$218 million, respectively. ============= I R E L A N D ============= WESTLB AG: Moody's Changes Outlook on D- FSR to Positive -------------------------------------------------------- Moody's Investors Service changed the outlook on WestLB AG's D- financial strength rating to positive from stable based on an updated assessment of the bank's financial and strategic positioning and approach. The A1 long-term debt and deposit ratings for WestLB AG's unsecured and unsubordinated obligations in domestic and foreign currency, the Aa2 rating for liabilities qualifying for the "grandfathering" of the economic benefits of the legal guarantees of Anstaltslast and Gewaehrtraegerhaftung, which were abolished in July 2005, and the Prime-1 short-term rating were affirmed and continue to carry stable outlooks. Moody's also adjusted the long-term debt and deposit ratings for WestLB Covered Bond Bank's unsecured and unsubordinated obligations in domestic and foreign currency to A1 from Aa3 in order to align these ratings with those of WestLB AG. The Aaa ratings for WestLB Covered Bond Bank's asset covered securities, the Prime-1 short-term rating and C- FSR were affirmed. The outlook for the unsecured debt and deposit ratings is stable. Moody's said that its decision to change the outlook on WestLB's D- FSR to positive was based upon its assessment of the bank's strategic and financial shortcomings, but also the options and opportunities available to its solid management team and the latter's emphasis on developing over time a client-driven business and franchise, consistent with WestLB's competitive advantages. The rating agency added that the positive rating action equally recognised the generally more risk-averse culture that the new management and shareholders have been promoting and the meaningful progress achieved by WestLB in managing its credit, market, operational and participation risks. Simultaneously, WestLB has significantly reduced its risk profile -- notably with regard to major concentration risks -- by terminating its Principal Finance activities and by divesting most of its holdings in corporates and financial institutions, most recently through the sale of its stake in HSH Nordbank, with positive implications for its tail risks and economic capital consumption. Moody's also views positively for WestLB its efforts to strengthen the links with the Sparkassen in North Rhine- Westphalia and their significant base of retail and SME customers, but it cautioned that the benefits of such a closer co-operation were split asymmetrically between WestLB and the Sparkassen and that the financial impact of this long-term project would probably be moderate. With regard to WestLB AG's financial profile, Moody's acknowledged that management has effectively stabilized its performance and has taken key measures to strengthen its asset quality as well as its economic and regulatory capitalization, both by de-risking and de-leveraging the balance sheet and by successfully raising fresh equity from its shareholders and hybrid capital from third-party investors. Notwithstanding these improvements and WestLB's brightening financial and strategic prospects, the rating agency pointed out that it continued to regard WestLB as a bank in transition and its financial fundamentals as weak and potentially vulnerable, as captured by the D- FSR. In this respect, Moody's particularly emphasized the high operating cost base and the constraints it implies for WestLB's operating efficiency, profitability and internal capital generation and the currently low cost of risk which it does not believe to be sustainable - factors which suggest that the pace in strengthening in WestLB's financial fundamentals would be gradual. Moody's noted positively that WestLB already identified meaningful cost savings, which it would seek to achieve in the medium term. In addition, the rating agency stressed that the quality of WestLB's earnings -- driven primarily by capital markets and the group's asset/liability management -- and capital leave further room for progress. Moody's said that the positive outlook is contingent upon WestLB successfully implementing over time its strategic objective of building a client-driven franchise in its home market and in selected international capital markets, leveraging the opportunities offered by the regional Sparkassen and their retail and SME customers in terms of origination and distribution channels. In quantitative terms, the positive outlook is based upon expected future improvements in WestLB's operating efficiency and profitability and a better quality of earnings. The rating agency said that the bank would also have to strengthen the level and quality of its economic capital over the medium term. Moody's concluded by commenting on WestLB Covered Bond Bank plc, which it continues to view as being of lesser strategic importance for WestLB. In light of the unconditional and irrevocable guarantee that WestLB AG has granted for the benefit of all of WestLB Covered Bond Bank's obligations, Moody's has aligned the long- and short-term ratings for the Irish bank's unsecured and unsubordinated liabilities to those of WestLB AG at A1-P-1. The rating agency noted that the guarantee would become void when and if WestLB AG ceased to be a shareholder of WestLB Covered Bond Bank. The guarantee would, however, remain in full force and effect with respect to any obligations and liabilities incurred prior to such expiry. Headquartered in Duesseldorf, Germany, WestLB AG was established in 2002 through the split of former Westdeutsche Landesbank Girozentrale. The private-law bank is largely owned by the State of North Rhine-Westphalia (48.69% held directly and indirectly) and the associations RSGV and WLSGV (25.48% each), which represent the Sparkassen in the region. At the end of June 2006, WestLB had total assets of EUR283.1 billion and equity of EUR6.1 billion. WestLB Covered Bond Bank plc is based in Dublin, Ireland and a wholly owned subsidiary of WestLB AG. At the end of 2005, it reported total assets of EUR15.4 billion and equity of EUR209 million. ========= I T A L Y ========= ALITALIA SPA: Eyes Alliance with Air France-KLM, Reports Say ------------------------------------------------------------ Alitalia S.p.A. is eyeing a to strengthen its link-up with Air France-KLM after the company's board of directors mandated CEO Giancarlo Cimoli to find a partner for the carrier, says AFX News citing local newspapers. According to La Stampa, Alitalia and Air France have been meeting regularly over a possible merger. The Italian government, however, preferred an alliance with an Asian carrier, Il Sore 24 Ore says. An Alitalia-Air France alliance, daily Corriere della Sera reports, would be controlled by a joint holding company. The Italian government, which currently holds a 49% stake in Alitalia, would control 30% of the holding company. Jean-Cyril Spinetta, Chief Executive of Air France, said a link- up would not materialize until Alitalia completes its financial restructuring. Meanwhile, Corriere della Sera reports that Mr. Cimoli is drafting a restructuring plan aimed at wooing Air France. According to Corriere della Sera, the plan mulls: -- the sale of ground operations; -- redesign of network, adding more activities at Rome's Fiumicino Airport, and making Milan's Malpensa Airport as center for low-cost operations; and -- job cuts: 1,000 job flight staff and 300 ground personnel with Italy to shoulder part of the redundancy costs. A separate report in L'Espresso weekly suggests that the government plans to split Alitalia with a business carrier based in Milan and a tourist airline in Rome. According to AFX News, Alitalia is also considering a partnership with Lufthansa, the Emirates Airline, and Tod's S.p.A. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates around EUR4.8 billion in annual revenue and employs more than 11,000 people. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. FERRO CORP: Ends Talks on Specialty Plastics Business Sale ---------------------------------------------------------- Ferro Corp. has discontinued discussions with Wind Point Partners regarding the sale of its Specialty Plastics business. "We did not feel that we could reach an agreement that provided Ferro shareholders with the full value of this business," said James Kirsch, Ferro President and Chief Executive Officer. "We will continue to operate the Specialty Plastics business, and expect it to remain a positive contributor to Ferro's operations. As we go forward, we will continue to pursue portfolio realignment activities that we believe best serve the interests of our shareholders and the growth objectives of the Company." Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE:FOE) - - http://www.ferro.com/-- produces performance materials for manufacturers, including coatings and performance chemicals. The Company has operations in 20 countries and has approximately 6,800 employees globally including Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 2, 2006, Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. FERRO CORP: Earns US$16.2 Million in Year Ended Dec. 31, 2005 ------------------------------------------------------------- Ferro Corporation reported US$16.2 million of net income for the year ended Dec. 31, 2005, compared to US$24.9 million of net income earned in the prior year. Sales from continuing operations for the year ended Dec. 31, 2005, of US$1,882.3 million were 2.1% higher than for the comparable 2004 period. Improved pricing and more favorable product mix in North America, Asia-Pacific and Latin America were the primary drivers for the revenue gain. Weakness in the market for multiplayer capacitors depressed unit demand and revenues, particularly in the first half of 2005. On a consolidated basis, the impact of strengthening foreign currencies versus the U.S. dollar had only a minimal positive impact on revenues. The Company's balance sheet at Dec. 31, 2005, showed US$1.66 billion in total assets, US$1.17 billion in total liabilities, total shareholders' equity of US$468,091 and Series A convertible preferred stock of US$20.4 million. At Dec. 31, 2005, the Company had a US$300 million revolving credit facility that was scheduled to expire in September 2006, as well as US$200 million of senior notes and US$155 million of debentures outstanding with varying maturities, the majority of which extended beyond 2010. The Company also had an accounts receivable securitization facility under which the Company could receive advances of up to US$100 million, subject to the level of qualifying accounts receivable. Subsequent to Dec. 31, 2005, the Company replaced or modified its existing facilities to secure future financial liquidity. The US$300 million revolving credit facility was replaced by a US$700 million credit facility, consisting of a US$250 million multi-currency senior revolving credit facility expiring in 2011 and a US$450 million senior delayed-draw term loan facility expiring in 2012. In addition, the Company extended its US$100 million accounts receivable securitization facility for up to three additional years. The Company expects to file its 2005 reports on Form 10-Q for the quarters ending March 31, June 30 and Sept. 30, 2005 by the end of October. With the completion of the 2005 financial filings, the Company will then focus on the completion of its Form 10-Q filings for the first three quarters of 2006, and expects to file these reports with the SEC by the end of 2006. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?1362 Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE:FOE) - - http://www.ferro.com/-- produces performance materials for manufacturers, including coatings and performance chemicals. The Company has operations in 20 countries and has approximately 6,800 employees globally including Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 2, 2006, Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. PARMALAT SPA: 35,000 Plaintiffs to Join Parma Civil Suit -------------------------------------------------------- The Hon. Judge Domenico Truppa of the Court of Parma, Italy is allowing 35,000 plaintiffs to participate in a civil case filed against Parmalat S.p.A., Agence France Presse says. Judge Truppa selected 35,000 plaintiffs from 42,000 applicants to represent some 135,000 investors who lost around EUR14 billion when Parmalat collapsed in December 2003. The civil case charges 64 defendants, including Parmalat founder Calisto Tanzi, former Chief Financial Officer Fausto Tonna, accountants, auditors and bankers and former board members, of fraudulent bankruptcy and false accounting, AFP relates. The proceedings related to Parmalat's collapse began on June 5, 2006. Mr. Tanzi and his co-accused are also under trial in Milan for stock price manipulation and releasing false information. Judge Truppa slated the next preliminary hearing for Nov. 22. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. (Parmalat Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand) =================== K A Z A K H S T A N =================== AINABULAK LLP: East Kazakhstan Court Starts Bankruptcy Procedure ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceedings against LLP Ainabulak on Sept. 15. AKRAB KOMHOZ: Creditors Must File Claims by Nov. 22 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube Region declared JSC Akrab Komhoz insolvent. Creditors have until Nov. 22 to submit written proofs of claim to: JSC Akrab Komhoz Altynsarina Str. 31 Aktobe Aktube Region Kazakhstan Tel: 8 (3132) 21-30-32 AMETA LLP: Proof of Claim Deadline Slated for Nov. 21 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Investing Company Ameta insolvent on July 28. Creditors have until Nov. 21 to submit written proofs of claim to: LLP Ameta Post Office Box 1 JSC Kazpochta Post Office 57 050057 Almaty, Kazakhstan Tel: 8 (3272) 37-03-31 INJENERNO-STROITELNAYA: Creditors' Claims Due Nov. 17 ----------------------------------------------------- The Tax Committee of Almaty Region entered an order placing LLP Engineering-Construction Company Injenerno-Stroitelnaya Kompaniya (RNN 090400018741) into compulsory liquidation. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Injenerno-Stroitelnaya Kompaniya Room 208 Jangusurov Str. 113a Taldykorgan Almaty Region Kazakhstan Tel: 8 (32822) 24-19-77 JANA JOL: Karaganda Court Opens Bankruptcy Proceedings ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Jana Jol (RNN 300800002284). NADEJDA-98 LLP: Kostanai Court Begins Bankruptcy Proceedings ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai Region commenced bankruptcy proceedings against LLP Nadejda-98 on Sept. 18. SPES LLP: Proof of Claim Deadline Slated for Nov. 17 ---------------------------------------------------- The Tax Committee of Almaty Region entered an order placing LLP Spes (RNN 0904000013069) into compulsory liquidation. Creditors have until Nov. 17 to submit written proofs of claim to: LLP Spes Room 208 Jangusurov Str. 113a Taldykorgan Almaty Region Kazakhstan Tel: 8 (32822) 24-19-77 TRANSIT TRANS: Almaty Court Commences Bankruptcy Proceedings ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Company Transit Trans (RNN 600400506408) on Sept. 11. TUTYNUSHY SAUDA: Claims Filing Period Ends Nov. 21 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Tutynushy Sauda insolvent on Aug. 31. Creditors have until Nov. 21 to submit written proofs of claim to: LLP Tutynushy Sauda Tereshkova Str. 10 Zarya Taldykorgan Almaty Region Kazakhstan Tel: 8 (3282) 22-90-39 8 (3003) 62-50-46 =================== K Y R G Y Z S T A N =================== INTER TRADE: Proof of Claim Deadline Slated for Dec. 13 ------------------------------------------------------- LLC Inter Trade has declared insolvency. Creditors have until Dec. 13 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 61-17-63. ===================== N E T H E R L A N D S ===================== DALRADIAN EUROPEAN: S&P Rates EUR13.13-Mln Class E Notes at BB- --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR312.69 million (equivalent) floating- rate notes to be issued by Dalradian European CLO II B.V., a special purpose entity. At the same time, Dalradian II will issue EUR37.31 million of unrated notes. The collateral manager will be Elgin Capital LLP. Dalradian II is the second CLO to be managed by Elgin. At closing, Dalradian II will issue EUR250 million of notes and invest the proceeds in a portfolio of predominantly senior secured loans. At the same time, the issuer will enter into a revolving loan facility agreement (revolver) under which it may draw up to EUR100 million (equivalent) in euros, British pounds sterling, and U.S. dollars. The issuer may, from time to time, refinance all or a portion of the revolver and issue class A1 refinancing notes, which will be consolidated and form a single series and rank pari passu with the class A1 notes then outstanding. Issuance of the class A1 refinancing notes will be subject to Standard & Poor's confirmation that the additional issue will not have an adverse impact on the then-current ratings on the notes. Ratings List Dalradian European CLO II B.V. EUR350 Million (Equivalent) Floating-Rate Notes Prelim. Prelim. amount Class rating (Mil. EUR equivalent) ----- ------ -------------------- A1 AAA 76.50 Revolving loan facility(1) AAA 100.00 A2 AAA 51.80 B AA 27.85 C A 20.83 D BBB- 22.58 E BB- 13.13 F(2) NR 37.31 (1) The revolving loan facility may be denominated in British pounds sterling, U.S. dollars, or euros. (2) Subordinated. NR-Not rated. =============== P O R T U G A L =============== INTERTAPE POLYMER: Provides Update on Ongoing Cost Reductions ------------------------------------------------------------- Intertape Polymer Group Inc. expects to record a non-cash goodwill impairment charge and is updating the status of its cost reduction initiatives. In accordance with applicable accounting requirements, the Company is performing an impairment test as at Sept. 30, 2006 on its goodwill. This analysis is expected to result in a non-cash impairment charge to operating expenses of approximately US$120 million to be recorded in the third quarter. This impairment relates to goodwill recorded at the time of various acquisitions during the period from 1996 through 2000 in light of current economic and market conditions. Cost Reduction Update The closing date of the Brighton, Colorado facility is expected to be achieved ahead of schedule on Nov. 1, 2006 versus the originally scheduled date of Jan. 1, 2007. As a result of productivity improvements at its other facilities, the Company has determined that it does not need to relocate certain Brighton equipment resulting in an additional non-cash write off US$10.4 million to be recorded in the third quarter of 2006. The previously estimated cash outlay of US$4.2 million in capital expenditures and US$3.8 million in equipment relocation costs will therefore not be incurred. The annual cost savings from this revised initiative are now estimated to be US$8.9 million as compared to the previously announced US$7.3 million. These savings will begin to be realized in the fourth quarter of 2006. The Company's corporate aircraft is contracted for sale. The transaction is expected to close by the end of October with estimated annual savings of approximately US$2 million to begin in the fourth quarter of 2006. In addition to these previously announced initiatives, Intertape disclosed further annual cost reductions of approximately US$7.4 million, principally in selling, general and administrative expenses. These further planned cost reductions will result in additional severance costs of approximately US$4.4 million to be realized in the fourth quarter of 2006 and the first quarter of 2007. In total, the Company has announced annualized cost reductions in excess of US$20 million that will begin to take effect in the fourth quarter of 2006. These programs are intended to align the Company's cost structure with its current revenue base. Improved Cash Position Intertape continues to focus on improving the utilization of its working capital. As at Sep. 30, 2006 the Company's cash balance was US$15.5 million, as compared with US$8 million as at June 30, 2006. The Company believes that it has the ability to generate sufficient working capital, now and for the foreseeable future, to meet the requirements of its day to day operations, given its anticipated operating margins and expected results. The Company believes it has sufficient liquidity to meet its business requirements for the foreseeable future. "Intertape remains dedicated to providing its customers with a complete range of products to meet their requirements, including the launch of its new ICushion air pillow system and Clarity display films. This, coupled with the adjustments we are making to align our cost base with the changes in the marketplace, in addition to our focus on working capital management and the resulting improvement in our cash balances, position the Company to continue as an industry leader," stated Interim CEO Dale McSween. The Company is requesting an amendment to its Credit Facilities to modify certain financial covenants and other provisions contained therein. Specifically, the Company is requesting that the lenders under the Credit Facilities temporarily relax the interest coverage, leverage ratio and fixed charges covenants and waive the non-cash goodwill impairment charge. Finally, the Company reports that while its CEO search process has been successful in identifying well qualified candidates, the Board of Directors is deferring the selection decision until the outcome of the previously announced strategic alternatives process becomes better defined. About Intertape Polymer Intertape Polymer Group -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the Company employs approximately 2450 employees with operations in 18 locations, including 13 manufacturing facilities in North America and one in Europe. * * * As reported in the TCR-Europe on Oct. 6, Standard & Poor's Ratings Services placed its ratings, including its 'B+' corporate credit rating, on Intertape Polymer Group Inc. on CreditWatch with negative implications. The CreditWatch placement follows the company's recent announcement that its Board of Directors will initiate a process to explore various strategic and financial alternatives. The nature of options being explored and the timeline of the exercise have not been announced, but the culmination of such an exercise could result in a change of ownership. ============= R O M A N I A ============= QUANTUM CORP: Moody's Assigns Loss-Given-Default Ratings -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Hardware sector this week, the rating agency confirmed its B3 Corporate Family Rating for Quantum Corp. Moody's also revised and held its probability-of-default ratings and assigned loss-given-default ratings on these two loans and a bond issue: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million Sr. Sec. Revolver due 2009 B2 Ba3 LGD2 24% US$225 million Sr. Sec. First Lien Facility due 2012 B2 Ba3 LGD2 24% US$160 million Subordinated convertible notes due 2010 Caa2 Caa2 LGD6 91% 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%). Headquatered in San Jose, California, Quantum Corp. -- http://www.quantum.com/-- is a global leader in storage, delivers highly reliable backup, recovery and archive solutions that meet demanding requirements for data integrity and availability with superior price/performance and comprehensive service and support. Quantum offers customers of all sizes an unparalleled range of solutions, from leading tape drive and media technologies, autoloaders and libraries to disk-based backup systems. In Europe, the company maintains operations in Denmark, Czech Republic, Romania, Portugal, France, Germany, and the United Kingdom. =========== R U S S I A =========== BALASHOVSKIY: Court Names S. Khoryukov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Saratov Region appointed Mr. S. Khoryukov as Insolvency Manager for OJSC Meat-Packing Combine Balashovskiy. He can be reached at: S. Khoryukov Room 2 Michurina Str. 50 410056 Saratov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-69B/06-31. The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: OJSC Meat-Packing Combine Balashovskiy Tikhiy Per. 9 Balashov Saratov Region Russia BUILDER LLC: Court Names A. Nikolskiy as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Ryazan Region appointed Mr. A. Nikolskiy as Insolvency Manager for LLC Builder. He can be reached at: A. Nikolskiy Tsyurupy Str. 22-1-101 117418 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-2838/2006 s 20. The Arbitration Court of Ryazan Region is located at: Pochtovaya Str. 43/44 Ryazan Region Russia The Debtor can be reached at: LLC Builder Ryazan Region Russia BUILDING COMPANY: Court Starts N. Shalaev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Mr. N. Shalaev as Insolvency Manager for CJSC Building Company. He can be reached at: N. Shalaev Komsomolskiy Pr. 11-82 454008 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-7173/2006-52-53. The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: CJSC Building Company Trekhgornyj Chelyabinsk Region Russia DOROGOBUZHSKIY CHEESE: Court Names S. Prudnikov to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Smolensk Region appointed Mr. S. Prudnikov as Insolvency Manager for OJSC Dorogobuzhskiy Cheese. He can be reached at: S. Prudnikov Post User Box 98 214031 Smolensk-31 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A62-2176/2006. The Debtor can be reached at: OJSC Dorogobuzhskiy Cheese Dorogobuzh 215720 Smolensk Region Russia ENGINEERING OIL: Court Names S. Vinnik as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Khanty-Mansiyskiy Autonomous Region appointed Mr. S. Vinnik as Insolvency Manager for CJSC Engineering Oil Company. He can be reached at: S. Vinnik Post User Box 2699 Central Post Office 644099 Omsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A75-5876/2006. The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is located at: Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: CJSC Engineering Oil Company Mira Str. 36 Nizhnevartovsk Khanty-Mansiyskiy Autonomous Region Russia KASHIN-AGRO-PROM-KHIMIYA: Bankruptcy Hearing Slated for Dec. 13 --------------------------------------------------------------- The Arbitration Court of Tver Region will convene on Dec. 13 to hear the bankruptcy supervision procedure on OJSC Kashin-Agro- Prom-Khimiya. The case is docketed under Case No. A66-6878/ 2006. The Temporary Insolvency Manager is: P. Tarasov Post User Box 19 OPS-100 Tver Region Russia The Debtor can be reached at: OJSC Kashin-Agro-Prom-Khimiya Stroiteley Str. 1 Kashin Tver Region Russia KURKINSKIY REFINERY: Court Names V. Kozlov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Tula Region appointed Mr. V. Kozlov as Insolvency Manager for LLC Kurkinskiy Refinery. He can be reached at: V. Kozlov Office 403 Sovetskaya Str. 112 300041 Tula Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-549/B-06. The Arbitration Court of Tula Region is located at: Hall 35 Sovetskaya Str. 112 Tula Region Russia The Debtor can be reached at: LLC Kurkinskiy Refinery Savelyevskiy Volgodonskiy Region Tula Region Russia LANSKIY WOOD-PROM-KHOZ: Court Names S. Vinnik to Manage Assets -------------------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy Autonomous Region appointed Mr. S. Vinnik as Insolvency Manager for OJSC Lanskiy Wood-Prom-Khoz. He can be reached at: S. Vinnik Post User Box 2699 Central Post Office 644099 Omsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A75-5909/2006. The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is located at: Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: OJSC Lanskiy Wood-Prom-Khoz Sergino-2 Oktyabrskiy Region Khanty-Mansiyskiy Autonomous Region Russia LYAGUSHKINSKOYE CJSC: Bankruptcy Hearing Slated for Jan. 17 ----------------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 3:30 p.m. on Jan. 17, 2007, to hear the bankruptcy supervision procedure on CJSC Lyagushkinskoye. The case is docketed under Case No. A45-12214/06-10/274. The Temporary Insolvency Manager is: I. Rak Apartment 62 Block 15 20 Kuybyshev 632382 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Lyagushkinskoye Lyagushye Kupinskiy Reiogn Novosibirsk Region Russia MIKHAYLOVSKIY MEAT: Altay Bankruptcy Hearing Slated for Feb. 5 -------------------------------------------------------------- The Arbitration Court of Altay Region will convene at 11:00 a.m. on Feb. 5, 2007, to hear the bankruptcy supervision procedure on OJSC Mikhaylovskiy Meat Combine. The Temporary Insolvency Manager is: V. Pitsun Post User Box 25 Central Post Office Slavgorod 658820 Altay Region Russia The Debtor can be reached at: OJSC Mikhaylovskiy Meat Combine Mikhaylovskoye Mikhaylovskiy Region Altay Region Russia RODINSKIY CHEESE: Court Names V. Pitsun as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. V. Pitsun as Insolvency Manager for OJSC Rodinskiy Cheese Factory. He can be reached at: V. Pitsun Post User Box 25 Central Post Office Slavgorod 658820 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-2648/06-B. The Debtor can be reached at: OJSC Rodinskiy Cheese Factory Lenina Str. 351 Rodino Rodinskiy Region Altay Region Russia SEVERSTAL OAO: Launches Global Stock Offering --------------------------------------------- OAO Severstal launched and commenced investor meetings of the global offering of its ordinary shares and Global Depositary Receipts, each GDR representing one ordinary share. The Global Offering The Global Offering will comprise an offering by Frontdeal Limited (Selling Shareholder) of existing ordinary shares including in the form of GDRs to international institutional and professional investors outside of the Russian Federation, including to qualified institutional buyers in the United States under Rule 144A, and an offering of ordinary shares in the Russian Federation. Severstal is currently approximately 90% owned by Alexey Mordashov through several entities, including the Selling Shareholder. Mr. Mordashov intends to sell a share of his current holding in connection with the Global Offering with a view to increase the post IPO free float to up to 25%. Immediately following the Global Offering, Severstal intends to undertake a capital increase through an open subscription for newly-issued ordinary shares, for which the shareholder entities controlled by Mr. Mordashov (including the Selling Shareholder) intend to subscribe in proportion to their existing holdings exercising their pre-emption rights, using some of the proceeds of the Global Offering. In addition, the Selling Shareholder has granted the Joint Global Coordinators an over-allotment option to purchase existing ordinary shares in the forms of GDRs, representing up to 15% of the total number of existing shares in the form of GDRs to be sold in the Global Offering. Severstal intends to use the gross proceeds of this capital increase to continue improving the quality of its production facilities and improve operating efficiencies throughout its global operating platform, and to take advantage of potential opportunities to expand its core business in line with its corporate strategy, including the funding of potential acquisitions of assets and participation in joint ventures. Citigroup, Deutsche Bank and UBS Investment Bank are Joint Global Coordinators and Joint Bookrunners for the Global Offering. Corporate Governance Code In line with previous announcements, Severstal's Board of Director's approved the new Corporate Governance Code on Oct. 20. As part of the new corporate governance arrangements, Severstal is arranging for its 10-member Board to be chaired by an Independent Non-Executive Chairman and for one half of its Board to be comprised of Independent Non-Executive Directors. "Interest at this stage in the offering process has been very encouraging and it is clear that there is already a high regard for Severstal in the international investment community," Alexey Mordashov, CEO of OAO Severstal, said. "I now look forward to meeting investors to underline the unique strengths of Severstal's business, our focus on growth and value creation and our commitment to U.K. corporate governance standards." About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of approximately EUR150 per ton. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * As reported in the TCR-Europe on Oct. 12, Moody's Investor's Service upgraded the corporate family rating of OAO Severstal from B1 to Ba3 and the rating for the Loan Participation Notes totaling US$700 million from B2 to B1. Moody's said the outlook on all ratings is stable. In a TCR-Europe report on July 5, Standard & Poor's Ratings Services kept its 'B+' long-term corporate credit rating on Russian steelmaker OAO Severstal on CreditWatch with positive implications following the consolidation of the company's mining assets. The rating was placed on CreditWatch on May 26, following the announcement of a previously agreed merger between Severstal and Luxembourg-based steelmaker Arcelor S.A. This merger was cancelled on June 30. As reported in the TCR-Europe on June 28, Fitch Ratings maintained the Rating Watch Positive status for OAO Severstal's ratings of Issuer Default BB-, senior unsecured BB-, Short-term B and National Long-term A+. SIBACADEMFINANCE PLC: Moody's Assigns Low-B Debt Ratings -------------------------------------------------------- Moody's Investors Service assigned B1 and B2 long-term foreign currency debt ratings to the Loan Participation Notes to be issued under an EMTN program on a limited-recourse basis by Sibacademfinance plc, a special purpose vehicle incorporated under the laws of Ireland, for the sole purpose of financing, respectively, senior unsecured and subordinated loans to Sibacadembank. The notes may be issued denominated in various currencies, while some of the tranches may fall under the 144A rule. The amount, tenor and the price of the notes will be determined by market conditions. The outlook for the ratings is positive in line with that for SAB's E+ Financial Strength Rating. At the same time, Moody's has rated at B1 (positive outlook) the first drawdown of senior unsecured Loan Participation Notes under SAB's EMTN Program. Moody's notes that the rating for the Notes is based on fundamental credit quality of SAB, as the ultimate obligor under the transaction. According to Moody's, the B1 long-term foreign currency rating for the Notes does not incorporate any outside support from the bank's shareholders in the event of distress, although such support cannot be ruled out. According to Moody's, the underlying loan agreement contains a set of covenants such as negative pledge, limitation on mergers and disposals as well as on transactions with affiliates. Moody's cautions that the transaction also has an embedded rating trigger whereby the LPNs may become payable in the event that SAB's rating is downgraded following a reorganization event. As one of the financial covenants, SAB is obliged to maintain a ratio of capital to risk-weighted assets at a pre-specified level inversely related to SAB's ratings. Moody's notes that, while the likelihood of any of the covenants being triggered is relatively low, any such occurrence could potentially have adverse liquidity implications for SAB and might exert additional downward pressure on its ratings. Sibacadembank is headquartered in Novosibirsk, Russia, and reported total consolidated assets of RUR28,718 million (US$998 million) and total shareholder equity of RUR2,802 million (US$97.4 million) in accordance with IFRS as at Dec. 31, 2005. STEPNOYE OJSC: Novosibirsk Bankruptcy Hearing Slated for Jan. 29 ---------------------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 10:00 a.m. on Jan. 29, 2007, to hear the bankruptcy supervision procedure on OJSC Stepnoye. The case is docketed under Case No. A45-15650/06-54/410. The Temporary Insolvency Manager is: Y. Gomerov Post User Box 325 Krasnoobsk 630501 Novosibirsk Region Russia Tel: 348-60-77 The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Stepnoye Andreevka Baganskiy Region Novosibirsk Region Russia TAGANKA CAR: Moody's Puts Ba2 Rating on US54.8-Mln Class C Notes ---------------------------------------------------------------- Moody's Investors Service assigned ratings to these three classes of asset-backed notes issued by Taganka Car Loan Finance PLC: -- US$270.9 million Class A Senior Asset Backed Floating Rate Notes due 2013: Baa1; -- US$77.4 million Class B Mezzanine Asset Backed Floating Rate Notes due 2013: Baa2; and -- US$54.8 million Class C Junior Asset Backed Floating Rate Notes due 2013: Ba2. This is the second securitization of auto loans originated in Russia and the first securitization transaction for MDM Bank. The securitized assets are U.S. Dollar and Rouble-denominated fixed rate auto loans to customers domiciled in Russia originated by MDM Bank since 2002. This is a static amortizing transaction and collections on the portfolio will be swept daily from the Collection Rouble Account or the Collection Dollar Account to an Issuer Rouble Account or Issuer Dollar Account. The main sources of credit enhancement are the subordination of the Class B and Class C Notes, overcollateralization provided by the subordinated loan, reserve fund and excess spread. During its analysis, Moody's noted that the structure benefits from a notification trigger that is set to occur upon the withdrawal or the downgrade of the long-term rating of MDM Bank below Ba3. In addition, Russian Standard Bank is appointed as Back-up Servicer at closing and will replace MDM Bank as servicer in the event of a Servicer Termination Event. There is furthermore a contingency reserve of US$750,000 that will be funded upon a loss of Ba2 by MDM Bank, which will facilitate the transfer of servicing duties and protect the assets of the Issuer in case a Servicer Termination Event. Finally, credit loss arising from commingling has been mitigated in this transaction by way of a commingling loss liquidity facility provided by a suitable entity with a long-term rating of Aaa and the notification and payment redirection trigger set at loss of Ba3 by MDM Bank. There remains however uncertainties in respect of the legal environment in Russia given that the transaction relies on key legal concepts which may not have been tested in judicial proceedings or in practice. Given the uncertainties, the ratings of the Notes are likely to be affected in case the creditworthiness of MDM Bank should deteriorate. In addition, whilst this is the first securitization of domestic assets in Russia that benefits from a balance guaranteed swap, the swap will terminate on the Scheduled Maturity Date in 2011, thereby exposing cashflows arising thereafter to significant foreign exchange volatility. The swap will also terminate upon the occurrence of any event, which has the effect of preventing the transfer of foreign currencies from Russia to a jurisdiction outside of Russia or the conversion of Roubles into certain foreign currencies. Furthermore, as approximately 33% of the loans are denominated in U.S. Dollars and many borrowers' income are at least in part denominated in Roubles, the cashflows arising from the U.S. Dollar-denominated auto loan contracts are exposed to the risk that the Russian government may redenominated foreign currency assets into Roubles in case of a financial crisis. Finally, Moody's notes that the aggressive growth of MDM Bank's auto loan portfolio has resulted in an increasing trend in losses. The ratings address the expected loss posed to investors by the legal final maturity. As there is no liquidity cover in the transaction in respect of the Class C Notes, in Moody's opinion the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date in respect of the Class A Notes and Class B Notes and allows for the ultimate payment of interest and principal at par on or before the rated final legal maturity date in respect of the Class C Notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. TOMARINSKAYA TIMBER: Court Names L. Sorokina to Manage Assets ------------------------------------------------------------- The Arbitration Court of Sakhalin Region appointed Ms. L. Sorokina as Insolvency Manager for CJSC Tomarinskaya Timber Company. She can be reached at: L. Sorokina Komsomolskaya Str. 310-53 Yuzhno-Sakhalinsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A59-2910/06-S9. The Debtor can be reached at: CJSC Tomarinskaya Timber Company Pobedy Str. 26-11 Krasnogorsk Sakhalin Region Russia VARNENSKIY BUTTER: Court Names V. Dubovoy as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Mr. V. Dubovoy as Insolvency Manager for OJSC Varnenskiy Butter Factory. He can be reached at: V. Dubovoy Bolshevistskaya 4 454038 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-14860/2006-52-144. The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Varnenskiy Butter Factory Zavalishina Str. 15a Varna Varnenskiy Region Chelyabinsk Region Russia VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 ----------------------------------------------------------- Vneshtorgbank JSC released its consolidated financial results for the first half ended June 30, 2006. For the first six months of 2006, VTB posted a 295% increase in net profit to US$576 million on a 96% increase in revenues to US$1.753 billion. For the January-June 2006 period, the company's net interest income rose 75.2% while net fee and commission income hiked more than 100%. Credits and advances to clients rose 18.9% to US$23.7 billion while the value of client accounts rose 45.6%. VTB attributed the rise in operating volumes and profit to its acquisition of Promstroybank and European banks previously owned by the Bank of Russia. As of June 30, 2006, VTB had US$45.3 billion in total assets, US$39.5 in total liabilities and US$4.3 billion in shareholders' equity. Profit Forecast The company expects to post RUR30 billion (US$1.1 billion) in net profit this year, says RIA Novosti citing Chief Executive Andrei Kostin. "That is considerably higher than last year," Mr. Kostin said. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * As reported in the TCR-Europe on July 31, following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month -------------------------------------------------------------- JSC Vneshtorgbank will decide in November whether to commence a takeover of Industry & Construction Bank of St. Petersburg (Promstroybank), RIA Novosti reports citing Chief Executive Andrei Kostin as its source. VTB currently owns 75% plus three shares of Promstroybank. The company has increased in operating volumes and profit in the first half of 2006 after its acquisition of Promstroybank. The regional bank's shareholders has already voted in favor of a takeover deal by VTB. Once a decision for takeover is reached, VTB will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in in universal banking with a special franchise in corporate finance and investment banking. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * As reported in TCR-Europe on July 31, following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. YUKOS OIL: Valuer Says Assets Could Be Sold at 10%-90% Discount --------------------------------------------------------------- The assets of bankrupt OAO Yukos Oil Co. may be sold at a discount after a consortium of appraisers assess the value of the company's properties, according to published reports. "The greatest difficulty for us is to determine a discount of the market value to the liquidation cost," Yevgeny Neiman, general director of Roseco, one of the five valuers in the consortium, said. "The discount on the liquidation price will depend on which asset we are valuing. The discount could be 10 percent or it could be 90 percent," Mr. Neiman added. According to Yukos bankruptcy receiver Eduard Rebgun, 48 creditors have filed claims against what was once Russia's biggest oil producer for RUR586 billion (US$21.8 billion). Anatoly Sobinevsky, Mr. Rebgun's representative, said that the asset sale could start after initial valuations are done and would include Yukos's foreign properties, AFX News relates. Mr. Rebgun, however, refused to forecast when the first auction for Yukos's assets would be, AK&M discloses. The consortium expects to complete the appraisal of Yukos's assets by the end of January 2007. Mr. Neiman said that a list of all Yukos assets has been drawn up and divided into four groups with 30-40 assets. RosBusinessConsulting reports that inventory in each field will begin next week. 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. ZENIT CAPITAL: Fitch Gives Final B Rating to US$200 Mln-Notes ------------------------------------------------------------- Fitch Ratings assigned Zenit Capital PLC's three-year US$200 million 8.75% loan participation notes due Oct. 27, 2009, a Long-term B rating and a Recovery Rating RR4. The notes are to be used for the sole purpose of funding a loan to Russia-based Bank Zenit, which is rated Issuer Default B with Stable Outlook, Short-term B, Individual D, Support 5 and National Long-term BBB- with Stable Outlook. The terms and conditions of the notes specify that they will rank at least equally with the claims of other unsecured creditors of Zenit, save those preferred by relevant laws. Under Russian law, the claims of retail depositors and account holders rank above those of other senior unsecured creditors. At end-H106, retail deposits and accounts comprised 18.8% of Zenit's total liabilities, according to the bank's unauditied IFRS interim financial statements. Furthermore, related-party liabilities constitute a significant part of Zenit's total liabilities. In Fitch's opinion, this could give rise to additional risks for bondholders in a default scenario, albeit not to the extent that these would justify a lower Recovery Rating than RR4 for the current transaction. Zenit ranks among Russia's 20 largest banks. It focuses on corporate and investment banking businesses, but is also developing a retail banking services platform. Founded in 1994, Zenit is owned by several shareholders, including Tatneft, Russia's fifth-largest oil company. * Fitch Rates Nizhniy Novgorod Region at Foreign Currency B+ ------------------------------------------------------------ Fitch Ratings assigned National Long-term A rating to the Russian Nizhniy Novgorod region's forthcoming RUB2 billion domestic five-year bond issue. The region's other ratings are Long-term foreign and local currency B+ ratings and a Short-term B rating. All rating Outlooks are Stable. The ratings reflect the strong local economy, which provides ongoing tax revenue increases. This allows the region to strengthen both its budgetary performance and debt structure. However, the ratings factor in Nizhniy Novgorod's high degree of budget rigidity with transfers dominating its operating spending. They also take into account the region's high debt burden. The Stable Outlook reflects Fitch's expectations that the economic expansion will drive revenue growth, further improving budgetary performance and debt burden reduction. The region's budgetary performance has been improving over the last three years with the operating and current margins rising to 8.6% and 6.1% respectively in 2005 from 4% and 2.3% in 2003. The improvement of the budgetary performance is attributed to faster operating revenue growth over operating expenditure growth during 2004-2005. The region has repaid all formerly defaulted eurobonds and total debt as a proportion of current revenue significantly decreased to 29% in 2005 from 44.6% in 2001 and is expected to decline further to 24.1% in 2006. At the same time the region's debt servicing remains high at an average of 31% of current revenue over the last three years while the average maturity of debt is low at two to three years. The region is exposed to significant refinancing risk with short-term bank loans representing 38% of the total direct debt in 2006 while significant debt amortizations are scheduled in 2007 and 2008. The region's budget is characterized by a high degree of rigidity since transfers amounted to 74.1% of total spending in 2005, while staff expenditure contributed another 15.1% of operating expenditure. The region's capital expenditure has been unstable during 2001-2005. Despite a recent increase to 9.4% in 2005 from 6% in 2004, total spending is still insufficient to compensate for the high level of infrastructure deterioration, which reportedly accounted for 60%-70% of infrastructural companies' fixed assets. Nizhniy Novgorod region is located in the central part of the Russian Federation. The region contributed 1.82% of the RF's gross domestic product in 2005 and accounted for 2.4% of country's population. =============== S L O V E N I A =============== VALEANT PHARMA: 10-Q Filing Delay Spurs S&P's Watch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on Costa Mesa, CA.-based Valeant Pharmaceuticals International, including Valeant's 'BB-' corporate credit rating, on CreditWatch with negative implications. "The rating actions follow the specialty pharmaceutical company's announcement that it does not expect to file its Form 10-Q for third-quarter 2006 by the filing date," said Standard & Poor's credit analyst Arthur Wong. "The delay is attributed to the company's need to restate its financials, possibly as far back as 1997, due to errors in accounting for stock option grants." A Valeant board of directors-appointed special committee is still conducting its review, and the magnitude of the restatements has not yet been determined. Valeant was already subject to an informal SEC probe regarding the issue. The failure to file its Form 10-Q on time would constitute a default of reporting requirements under its convertible and high-yield note agreements that if not cured in 60 days could result in an acceleration of the amounts outstanding under those notes. "Standard & Poor's will monitor the cost and ability of Valeant to cope with this situation before resolving the CreditWatch listing," Mr. Wong said. ========= S P A I N ========= ALLIANCE ATLANTIS: Completes Strategic Review of MPD Holding ------------------------------------------------------------ Alliance Atlantis Communications Inc. has completed the strategic review of its holding in Motion Picture Distribution LP and intends to explore ownership alternatives. "During the course of our review we have identified many opportunities for broadcasters and motion picture distributors in this environment of evolving delivery technologies," said Phyllis Yaffe, Chief Executive Officer. "We believe these new technologies are enhancing and facilitating consumer access to content and are growing the market for content owners. But, following a thorough analysis and review, we have concluded it is not necessary for AACI to own an interest in MPD in order for us to benefit from MPD's content and create value for our core broadcasting business." "In light of this conclusion, we will be exploring ownership alternatives; including selling some or all of our holding in MPD, on acceptable financial terms and with appropriate long- term commercial arrangements in place," said David Lazzarato, Executive Vice President and Chief Financial Officer. AACI has engaged RBC Capital Markets and Bennett Jones LLP as its financial and legal advisors, respectively, and will work with the Trustees of Movie Distribution Income Fund and their advisors to establish a process to achieve these objectives. AACI intends to provide an update during its third quarter conference call expected the second week of November 2006. There can be no assurance that any such process will result in a sale by AACI of its interest in MPD in whole or in part. As previously disclosed in public filings, the MPD Securityholders' Agreement provides that each of AACI and MDIF requires the approval of the other with respect to a sale of its holdings. About Alliance Atlantis Communications Based in Toronto, Ontario, Alliance Atlantis Communications Inc. -- http://www.allianceatlantis.com/-- offers Canadians 13 well- branded specialty channels boasting targeted, high-quality programming. The Company also co-produces and distributes the hit CSI franchise and indirectly holds a 51% limited partnership interest in Motion Picture Distribution LP, a leading distributor of motion pictures in Canada, with a growing presence in motion picture distribution in the United Kingdom and Spain. The Company's common shares are listed on the Toronto Stock Exchange-trading symbols AAC.A and AAC.NV.B. ALLIANCE ATLANTIS: Moody's Puts Low-B Ratings Under Review ---------------------------------------------------------- Moody's Investors Service placed the Ba2 Corporate Family, Ba1 Senior Secured and Ba3 Probability of Default ratings of Alliance Atlantis Communications Inc. under review for possible upgrade. The rating action follows AA's recent announcement that it will explore ownership alternatives for its 51% interest in Motion Picture Distribution LP. The initiation of the review also reflects the reasonably strong performance of AA's core broadcasting and CSI franchise assets, which are producing meaningful free cash flow in relation to debt levels. The rating review will focus on: 1) Moody's expectation for the sale of MPD to occur in whole or in part, 2) AA's plans for any resulting cash proceeds in context of the company's stated capital structure target range of 1.5x to 2.5x net debt to EBITDA, 3) the future prospects for AA's core broadcasting and CSI TV franchise assets, and 4) Moody's expectations that management may divert cash to shareholders via continued share buy backs or through the implementation of a dividend. Ratings placed under review for possible upgrade: * Ba2 Corporate Family Rating * Ba3 Probability-of-Default rating * Ba1 Senior Secured rating * LGD2 (26%) Loss-Given-Default rating for Senior Secured debt Alliance Atlantis Communications Inc., headquartered in Toronto, Canada, is specialty channel broadcaster with a 50% ownership interest in the CSI TV franchise. FONDO DE TITULIZACION: Fitch Junks EUR19.8 Mln Class E Notes ------------------------------------------------------------ Fitch Ratings assigned ratings to Fondo de Titulizacion de Activos, UCI 16 EUR1.82 billion mortgage-backed floating-rate notes due in June 2049: -- EUR430 million Class A1: AAA; -- EUR1.248 billion Class A2: AAA; -- EUR72 million Class B: A; -- EUR41.4 million Class C: BBB; -- EUR9 million Class D: BB+; and -- EUR19.8 million Class E: CCC. This transaction is a cash flow securitization of a EUR1.8 billion static pool of first- and second-ranking residential mortgages loans and personal loans granted to individuals in Spain to finance the purchase of a residential property by Union de Creditos Inmobiliarios E.F.C. S.A., which will continue to service the collateral. The ratings are based on the quality of the collateral, available credit enhancement, the legal and financial structure of the deal, the underwriting and servicing of the collateral and the Santander de Titulizacion S.A. S.G.F.T.'s administrative capabilities. The ratings of the Class A1 to D notes address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C and D notes, as well as the repayment of principal by the legal final maturity for each note. The Class E notes will be issued to finance the cash reserve fund. The Class E notes are ultimately likely to default, and their ratings are supported by the expected recovery rate for noteholders, that is, the amounts investors are likely to receive during the life of the transaction. UCI 16 will be regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to transform a portfolio of mortgage participations, mortgage certificates and personal loans into fixed-income securities. The fund will be legally represented and managed by Santander de Titulizacion S.A. S.G.F.T., a limited liability company incorporated under Spanish law, the activities of which are limited to the management of securitization funds. Of the global pool by value, 28.8% benefits from a mortgage insurance guarantee provided by Genworth Financial Mortgage Insurance Limited. This is UCI's 15th securitization and the third rated by Fitch. UCI is an established monoline mortgage lending company, equally owned by Banco Santander Central Hispano and BNP Paribas. As in previous transactions, the collateral incorporates variable-rate loans with features such as initial fixed interest rates, lower initial installments and payment options. GC FTGENCAT: Fitch Junks EUR4.5 Million Class D Notes ----------------------------------------------------- Fitch Ratings assigned GC FTGENCAT Caixa Sabadell 1, Fondo de Titulizacion de Activos' notes totaling EUR304.5 million due in October 2040 final ratings. -- EUR113.5 million Class A (S): AAA; -- EUR163 million Class A (G): AAA; -- EUR11.7 million Class B: A+; -- EUR11.8 million Class C: BBB-; and -- EUR4.5 million Class D: CCC. The ratings address payment of interest on the notes according to the terms and conditions of the documentations, subject to a deferral trigger on the Class B and C notes, as well as the repayment of principal by legal final maturity date. The Class D notes have been issued to finance the creation of the reserve fund at closing. The good performance of the Class D notes depends on very favorable conditions for the collateral backing the Class A to C notes, and therefore its rating is supported by the recovery rate that noteholders are likely to receive during the life of the transaction. The Autonomous Community of Catalonia guarantees ultimate payment of interest and principal on the class A (G) notes. This transaction is a cash flow securitization of a EUR300 million revolving pool of secured and unsecured loans granted by Caixa d'Estalvis de Sabadell to small- and medium-sized enterprises in Spain and specifically in the region of Cataluna. Caixa Sabadell has participated in a number of securitization programs, especially collateralized debt obligation of Cedulas Hipotecarias. This transaction, however, represents Caixa Sabadell's first single seller SME securitization. Static pool transactions are standard in the Spanish SME collateralized debt obligation market; however, this transaction has a 30-month revolving period after which the notes will amortize sequentially. Breach of certain triggers during the revolving period will lead to early amortization of the notes. Based on the dynamic and static delinquency data presented by Caixa Sabadell, Fitch verified that the performance triggers applicable during the revolving phase should be able to maintain the credit profile and financial quality of the collateral until the beginning of the amortization phase. ASPEON INC.: Auditor Expresses Going Concern Doubt -------------------------------------------------- Larry O'Donnell CPA, PC, expressed substantial doubt about Aspeon Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal years ended June 30, 2006 and 2005. The auditor pointed to the company's significant losses from operations, net capital deficit, and no ongoing source of income. At June 30, 2006, the company's balance sheet showed US$8.1 million in stockholders' deficit, compared with a US$7.9 million deficit at June 30, 2005. Liquidity and Capital Resources "As of June 30, 2006, we had US$7 cash on hand, US$195 of assets, no operating business or other source of income, outstanding liabilities of approximately US$8.1 million, a stockholders' deficit of approximately US$8.1 million and a lawsuit brought against us by certain of our shareholders," the company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. The company said it is dependent on raising additional equity or debt to fund any negotiated settlements with its outstanding creditors and meet its ongoing operating expenses. Bankruptcy Threat "If we were to be subject to any further appeal, which may be made in respect of the lawsuit brought against us by certain of our shareholders, it is unlikely that the proceeds from our Directors' and Officers' insurance policy would be sufficient to meet the damages assessed and we would have no alternative but to file for bankruptcy," the company warned. Headquartered in Irvine, California, Aspeon, Inc. -- http://www.aspeon.com/-- designs, manufactures and markets open system touch screen point-of-sale computers. During the year, the company established subsidiaries in United Kingdom, Singapore and Australia. =========== S W E D E N =========== IKON OFFICE: 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 Hardware sector, the rating agency confirmed its Ba2 Corporate Family Rating for IKON Office Solutions. Moody's also downgraded its probability-of-default ratings and assigned loss-given-default ratings to these four bond issues: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$14 million Sr. Unsec. Notes due 2008 Ba2 Ba3 LGD4 64% US$260 million Sr. Unsec. Notes due 2025 Ba2 Ba3 LGD4 64% US$95 million Sr. Unsec. Notes due 2027 Ba2 Ba3 LGD4 64% US$225 million Sr. Unsec. Notes due 2015 Ba2 Ba3 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 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 Malvern, Pennsylvania, IKON Office Solutions (NYSE:IKN) -- http://www.ikon.com/-- integrates imaging systems and services that help businesses manage document workflow and increase efficiency. As the world's largest independent distribution channel for copier and printer technologies, IKON offers best-in-class systems from leading manufacturers such as Canon, Ricoh and HP and service support through its team of 6,000 service professionals worldwide. The Company's two units, IKON North America (INA) and IKON Europe (IE), were formed by integrating IKON's business services, managed services and captive finance subsidiaries. In Europe, IKON maintains operations in Spain, Denmark, Switzerland, United Kingdom, Sweden, The Netherlands, Italy, and Germany. =========== T U R K E Y =========== IMAX CORP: S&P Removes B- Rating from Developing Watch ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its ratings, including the 'B-' corporate credit rating, on IMAX Corp. and removed them from CreditWatch, where they were placed on March 10 with developing implications. The outlook is negative. As of June 30, 2006, the company had US$160 million of debt. "The rating action is based on management having discounted the likelihood of IMAX being acquired by a strategic buyer," said Standard & Poor's credit analyst Tulip Lim. "However, the company is continuing talks with financial buyers." As a result, Standard & Poor's no longer sees the potential for an upgrade arising from a strategic transaction, and the possibility of a downgrade now appears less likely given that management has been reviewing offers for a while without concluding a transaction. The rating reflects the modest size and uncertain long-term earnings potential of the company's niche market relative to its debt burden, weak discretionary cash flow, and limited liquidity. These concerns overshadow: -- IMAX's position as a specialized provider of giant-screen projection, camera, and sound systems; -- the recurring revenue provided by the installed base of about 280 IMAX theater systems; and -- a measure of near-term revenue visibility provided by the company's backlog of pending system installations. ============= U K R A I N E ============= BITRADE: Kyiv Court Names LLC Sigma-Resurs as Liquidator -------------------------------------------------------- The Economic Court of Kyiv Region appointed LLC Sigma-Resurs as Liquidator for LLC BITRADE (code EDRPOU 31812356). The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 24/592-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Bitrade Patris Lumumba Str. 15-A Kyiv Region Ukraine DELTAFIN: Court Names Volodimir Barantsov as Liquidator ------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Volodimir Barantsov as Liquidator/Insolvency Manager for LLC Deltafin (code EDRPOU 32543277). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 10/451/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Deltafin Potyomkinska Str. 26 Mikolaiv Region Ukraine FINMARKET: Court Names Volodimir Barantsov as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Volodimir Barantsov as Liquidator/Insolvency Manager for LLC Finmarket (code EDRPOU 33250350). He can be reached at: Volodimir Barantsov Persha Slobidska Str. 8-a 54055 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 10/447/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Finmarket Privilna Str. 158/1 Mikolaiv Region Ukraine FODOSIJSKA TOBACCO: AR Krym Court Starts Bankruptcy Supervision --------------------------------------------------------------- The Economic Court of AR Krym Region commenced bankruptcy supervision procedure on LLC Production Association Fodosijska Tobacco Factory (code EDRPOU 32294439). The case is docketed under Case No. 2-29/11345-2006. The Temporary Insolvency Manager is: I. Gerasimov Simferopol, 95043 AR Krym Region Ukraine Gagarin Str. 36/52 The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: LLC Production Association Fodosijska Tobacco Factory Druzhbi Str. 62 Feodosiya 98111 AR Krym Region Ukraine NEOO LLC: Court Names Volodimir Barantsov as Insolvency Manager --------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Volodimir Barantsov as Liquidator/Insolvency Manager for LLC Neoo (code EDRPOU 32996816). He can be reached at: Volodimir Barantsov Persha Slobidska Str. 8-a 54055 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 1/450/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Neoo Geroiv Staligradu Avenue 107/53 Mikolaiv Region Ukraine ORION LLC: Odessa Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Economic Court of Odessa Region commenced bankruptcy supervision procedure on LLC Orion (code EDRPOU 22452783). The case is docketed under Case No. 7/252-06-8226. The Temporary Insolvency Manager is: O. Sharmonov Shevchenko Avenue 31 65058 Odessa Region Ukraine The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: LLC Orion Shevchenko Avenue 31 65058 Odessa Region Ukraine PRAVEX-BANK: Moody's Assigns B2 Rating on UAH50-Mln Bond Issue -------------------------------------------------------------- Moody's Investors Service, Inc. assigned a B2 global local currency long-term senior unsecured debt rating as well as an A3.ua long-term National Scale Rating to the local currency (hryvnia) denominated bonds to be issued by Pravex-Bank, which will represent a senior unsecured claim on the bank. The planned issue size is UAH50 million (around US$10 million) with a final maturity of three years. The outlook for the global rating is stable, while the NSR carries no specific outlook. According to Moody's, the B2 global scale local currency rating reflects global default and loss expectation and is not constrained by any foreign currency transfer risk, while the A3.ua NSR reflects the standing of the bank's credit quality relative to its domestic peers. Moody's B2 rating for the bonds is based on Pravex-Bank's fundamental credit quality and factors in the bank's ability to fulfil its long-term obligations. They include those associated with the put option that the bondholders will, according to the terms of the issue, be able to exercise in order to sell the bonds back to the bank on the first and second anniversaries of the issue. Moody's notes that if the bank's credit quality were to deteriorate at these times, exercise of the put options might exert additional pressure on its financial condition. The obligations of Pravex-Bank to make payments under the bonds will rank at all times at least pari-passu with the claims of all other unsecured and unsubordinated creditors of the bank, save for those claims that are preferred by any relevant law. According to Ukrainian legislation, accounts of individuals (71% of Pravex's total liabilities at end-December 2005) are ranked senior in right of payment to the claims of the bondholders. The bonds' prospectus contains a cross-acceleration clause. Headquartered in Kiev (Ukraine), Pravex-Bank reported total IFRS assets of US$394 million as at year-end 2005 and net profit of US$2.4 million for the year 2005. RADAR LV: Lviv Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Economic Court of Lviv Region commenced bankruptcy supervision procedure on LLC Radar LV (code EDRPOU 31362350) on Sept. 19. The case is docketed under Case No. 6/151-8/234. The Temporary Insolvency Manager is: Yaroslav Onushkanich Strijska Str. 71b/3 Lviv Region Ukraine The Economic Court of Lviv Region is located at: Lichakivska Str. 81 79010 Lviv Region Ukraine The Debtor can be reached at: LLC Radar LV Lesya Ukrainka 7 79000 Lviv Region Ukraine SCIENTIFIC-PRODUCTION COMPLEX: Bankruptcy Supervision Starts ------------------------------------------------------------ The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Scientific-Production Complex (code EDRPOU 31779431) on Aug. 9. The case is docketed under Case No. 23/333-b. The Temporary Insolvency Manager is: Oleksandr Snizhko 40-richya Zhovtnya Avenue 126/18 03127 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Scientific-Production Complex Gutchenko Str. 26-A 83059 Donetsk Region Ukraine VTORMET-SERVICE: Court Names Volodimir Barantsov as Liquidator -------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Volodimir Barantsov as Liquidator/Insolvency Manager for LLC Vtormet- Service (code EDRPOU 31096447). He can be reached at: Volodimir Barantsov Persha Slobidska Str. 8-a 54055 Mikolaiv Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 28. The case is docketed under Case No. 10/385/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Vtormet-Service Ternopilska Rozvilka Str. 1 Mikolaiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== AMARANTH ADVISORS: Cuts 370 Jobs as Shutdown Progresses ------------------------------------------------------- Amaranth Advisors terminated about 350 of its employees as the company proceeds with the shut down of its business operations in March 2007, The Chicago Tribune reports. In a letter written and sent to a Connecticut Department of Labor unit that monitors business closures, Nicholas Maounis, founder of Amaranth, stated that the Company's failure to sell part or all of its business to an outside investor made layoffs unavoidable. Moreover, the paper recounts that the Connecticut officials are looking for potential employers who can hire Amaranth employees and keep them in the state. Steve Bruce, Amaranth spokesman, has disclosed that at least 1,000 jobs may fit for the Company's employees in the rival hedge funds and financial firms. Mr. Maounis has sent a letter to investors stating that the fund was suspending all redemptions for Sept. 30 and Oct. 31, to enable the Amaranth funds to generate liquidity for investors in an orderly fashion. The letter also disclosed that Amaranth has lost US$6.4 billion and assets were down 65% to 70% for the month and 55% to 60% for the year. Amaranth Advisors, based in Greenwich, Connecticut with offices in Toronto, Canada, London, England and Singapore, is an investment management firm. Amaranth specializes in a broad spectrum of alternative investments and trading strategies, through a multi-strategy investment fund and fund dedicated to long-short equities. * * * Amaranth faces multiple regulatory probes and possible lawsuits after disclosing in September that it had lost 35%, or approximately $6 billion, of the value of its natural gas bets due to a dramatic move in gas prices. Amaranth transferred its energy portfolio to Citadel Investment Group and J.P. Morgan Chase & Co. following the loss announcement. AMITY EUROPE: Creditors' Meeting Slated for October 31 ------------------------------------------------------ Creditors of Amity Europe Limited (Company Number 05922586) will meet at noon on Oct. 31 at: Vantis Stoughton House Harborough Road Oadby Leicester LE2 4LP 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. 30 at: Nicholas Hugh O'Reilly Joint Administrator Vantis PO Box 2653 66 Wigmore Street London W1A 3RT United Kingdom Tel: 020 7467 4000 Fax: 020 7284 4995 Headquartered in London, England, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. BARRINGTONS FURNITURE: Creditors' Meeting Slated for Oct. 30 ------------------------------------------------------------ Creditors of Barringtons Furniture Store Limited (t/a Furniture 2 Go) (Company Number 03776490) will meet at 11:00 a.m. on Oct. 30 at: Tenon House Ferryboat Lane Sunderland SR5 3JN 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. 27 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN United Kingdom Tel: 0191 511 5000 Fax: 0191 511 5001 Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. BATTERY SPECIALIST: Claims Filing Period Ends Nov. 11 ----------------------------------------------------- Creditors of Battery Specialist Shropshire Ltd. (formerly Danestar Limited) have until Nov. 11 to send in their names and addresses, particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator David Halstead Bottomley at: Bottomley & Co. 3 Chapel Court 42 Holly Walk Leamington Spa Warwickshire CV32 4YS United Kingdom The company can be reached at: Battery Specialist Shropshire Ltd. Creative House 111-113 Watling Street Wellington Telford Shropshire TF1 2NJ United Kingdom Tel: 01952 243 947 Fax: 01952 245 250 BEESAFE PROJECTS: Liquidator Sets Dec. 7 Claims Bar Date -------------------------------------------------------- Creditors of Beesafe Projects Ltd. have until Dec. 7 to send in their full names, their addresses of their Solicitors (if any) to appointed Liquidator Helen Timothe Phillips at: Phillips & Co. 21-23 Station Road Gerrards Cross Buckinghamshire SL9 8ES United Kingdom Headquartered in Southall, United Kingdom, Beesafe Projects Ltd. -- http://www.beesafe.org.uk/-- is a scheme that provides a real practical service to the most vulnerable members of the community. Beesafe carries out improvements to the home security of pensioners, registered disabled and other sections of society on fixed income for only the cost of the materials. BENJAMIN HALL: Appoints H. J. Sorsky to Liquidate Assets -------------------------------------------------------- H. J. Sorsky was appointed Liquidator of Benjamin Hall Ltd. on Oct. 16 for the creditors' voluntary winding-up procedure. The company can be reached at: Benjamin Hall Ltd. 121 Gloucester Place London W1U 6JY United Kingdom Tel: 020 7486 1866 BOMBARDIER INC: Slashes Jet Production Rates & Cuts Workforce ------------------------------------------------------------- Bombardier Aerospace, a unit of Borbardier Inc., is adjusting its regional aircraft production rates to reflect current market demand. As a result, the production rate for its CRJ700/900 regional jets will be reduced. This will be partly offset by an increase in the Q400 turboprop production level in response to the growing need for this type of cost efficient regional airliner, which is ideally suited to short-haul routes. Bombardier will adjust its workforce level accordingly. Total Bombardier aircraft deliveries for the current fiscal year 2006/07 are expected to remain at a similar level to that of last fiscal year 2005/06 (year ending Jan. 31, 2006), but with a different product mix. "We lead the regional aircraft market with 1,376 deliveries of our CRJ Series and 749 deliveries of our Q-Series regional aircraft, including more than 320 deliveries of our CRJ700/900 regional jets and over 350 deliveries of Q300/400 turboprop aircraft as of July 31, 2006," Pierre Beaudoin, President and Chief Operating Officer of Bombardier Aerospace, said. "Recent orders for both our larger 90-passenger CRJ900 aircraft from Northwest Airlines and My Way Airlines and 70-seat Q400 aircraft from Frontier Airlines and Luxair demonstrate that we have the right products for operators looking to take advantage of our regional aircraft's competitive operating economics." "The restructuring of the airline industry continues, with relatively few orders for regional jets in the 70- to 90-seat jet category being awarded in recent years," Mr. Beaudoin added. This situation should improve as attested by the numerous sales campaigns we are actively pursuing. However, we must be prudent and manage proactively our CRJ700/900 jets production schedule in the short term to ensure we achieve our goal of increased profitability and our success in the long term. This means making difficult but necessary decisions. We recognize the impact this decision will have on our affected employees and we will treat them fairly and with respect." Production Rates Adjustment -- for the 70-passenger CRJ700 and 90-seat CRJ900 regional jets, starting November 2006, a reduction to a rate of one aircraft produced every five days from a rate of one aircraft every three days, or a total of approximately 65 deliveries in the current fiscal year 2006/07 (year ending Jan. 31, 2007) and approximately 50 deliveries in the next fiscal year 2007/08 (year ending Jan. 31, 2008). -- for the Q-Series turboprop family, which includes the Q200, Q300 and Q400 airliners, starting in October 2006, the increase in the Q400 production level will result in a total of approximately 50 Q-Series deliveries in the current fiscal year 2006/07 and approximately 65 Q-Series deliveries in the next fiscal year 2007/08. Impact on Manpower By the end of the current fiscal year 2006/07, the workforce level at Bombardier's Toronto facility where the Q-Series and Global aircraft are manufactured will have risen by over 800 employees to reflect the increase in production levels. However, the company expects that the adjustment in the CRJ700/900 regional jets production rate will result in a workforce reduction of approximately 1,330 employees, including management, at its Montr,al-area facilities and at its Belfast site over a nine-month period starting October 2006. Total Bombardier Aerospace employment as of July 2006 was approximately 26,900. The overall workforce level has remained at a similar level since January 2004. Impact on Manpower Level by Site Layoffs Employees to leave ---- ------- ------------------ Belfast 645 Starting January 2007 Montreal-area 485 Starting late November Management and other salaried employees in Canada 200 Starting October 2006 Total 1,330 Severance costs associated with the layoffs will total approximately US$31 million US and the majority of these costs will be expensed through the normal course of operations in the third quarter of the current fiscal year 2006/07 (year ending Jan. 31, 2007). While the order level for larger regional jets is still challenging, the order book for turboprops is growing. Furthermore, orders and deliveries of business aircraft continue to rise year over year. Bombardier is ideally positioned in corporate aviation, with the broadest and most modern line-up of business aircraft to meet strong demand in North America and Europe and growing interest in the Asia-Pacific region. According to the latest General Aviation Manufacturer Association (GAMA) figures for the first half of 2006, Bombardier is a leader with 30 per cent of all business jet deliveries. About Bombardier Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment. The company is a global corporation. In Europe, it maintains operations in Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, and Austria. Its revenues for the fiscal year ended Jan. 31, 2006 were US$14.7 billion and its shares are traded in the Toronto Stock Exchange. As reported in the TCR-Europe on Oct. 25, Fitch Ratings placed the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc. on Rating Watch Negative. The existing ratings are: Bombardier Inc. -- IDR BB; -- Senior unsecured debt BB; -- Bank facilities BB; and -- Preferred stock B+. Bombardier Capital Inc. -- IDR BB; and -- Senior unsecured debt BB. These ratings cover approximately US$4.2 billion of outstanding debt and preferred stock. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. Bombardier Inc.'s 6.3% Notes due 2014 also carry Moody's Investor Service's Ba2 rating and Standard & Poors' and Fitch Ratings' BB ratings. CHALLENGE BUSINESS: Appoints Grant Thornton as Administrators ------------------------------------------------------------- Nigel Morrison and Richard Hawes of Grant Thornton U.K. LLP were appointed joint administrators of The Challenge Business International Ltd. (Company Number 03208058) and The Challenge Business Limited (Company Number 02316408) on Oct. 9. 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. The Challenge Business International Ltd. and The Challenge Business Ltd. can be reached at: 7 Ocean Way Southampton Hampshire SO14 3TJ United Kingdom Tel: 023 8071 5300 CHARTLEY STONE: Taps Liquidator from Barringtons Limited -------------------------------------------------------- Philip Barrington Wood of Barringtons Limited was appointed Liquidator of Chartley Stone Limited on Oct. 10 for the creditors' voluntary winding-up procedure. Headquartered in Stafford, England, Chartley Stone Limited engages in stone masonry. DAB2 LIMITED: Appoints Paul Michael McConnel as Administrator ------------------------------------------------------------- Paul Michael McConnell of Monahans was appointed administrator of DAB2 Ltd. (Company Number 05387789) on Oct. 11. The administrator can be reached at: Paul Michael McConnell Monahans 38-42 Newport Street Swindon Wiltshire SN1 3DR United Kingdom Tel: 01793 521231 Fax: 01793 512188 E-mail: paulm@monahans.co.uk Headquartered in Bath, England, DAB2 Ltd. manufactures electrical equipment. DMM CONTRACTING: Claims Registration Ends Nov. 7 ------------------------------------------------ Creditors of Dmm Contracting Limited have until Nov. 7 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator Carl S. Jackson at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ United Kingdom The company can be reached at: Dmm Contracting Limited 4 The Pickfords Building 16-22 Priory Avenue Prittlewell Grays Essex RM17 6BG United Kingdom Tel: 01375 383 383 Fax: 01375 372 771 DIRECT CARS: Hires Eileen T. F. Sale to Liquidate Assets -------------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of Direct Cars 2 Limited on Oct. 11 for the creditors' voluntary winding-up procedure. Headquartered in Crewe, United Kingdom, Direct Cars 2 Limited operates taxicabs. DOLLAR ROSE: Joint Liquidators Take Over Operations --------------------------------------------------- Edward Terence Kerr and Ian James Gould of PKF (U.K.) LLP were appointed Joint Liquidators of Dollar Rose Limited on Oct. 9 for the creditors' voluntary winding-up procedure. Headquartered in Nottingham, England Dollar Rose Limited offers screen printing services. ETON ROAD: Creditors' Claims Due Nov. 30 ---------------------------------------- Creditors of Eton Road Limited have until Nov. 30 to send in their full names and addresses, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any) to appointed Liquidator William Antony Batty at: Antony Batty & Co. Third Floor 3 Field Court Gray's Inn London WC1R 5EF United Kingdom The company can be reached at: Eton Road Limited Oakley Wood Road Bishops Tachbrook Leamington Spa Warwickshire CV339QE United Kingdom Tel: 01926 451 450 FORD MOTOR: Ditches Fidelity Magellan from 401(k) Plan ------------------------------------------------------ Ford Motor will drop the Fidelity Magellan Fund from the 401(k) retirement plan it offers to employees, The Wall Street Journal reports. Apart from Magellan, the automaker is also nixing Domini Social Investments' Social Equity Fund; Morgan Stanley's Institutional Fund Inc. Global Value Equity Portfolio; and Vanguard Group's Explorer Fund (Admiral Class), CNN Money says. Jane J. Kim at The Journal reports that Ford will close the funds to new investments on Nov. 6. Next year, existing balances left in the funds will be transferred to the company's stable-value fund. According to CNN Money, Ford won't replace the four that were dropped. 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 the Troubled Company Reporter-Europe on Oct. 25, Moody's Investors Service disclosed that Ford's very weak third quarter performance, with automotive operations generating a pre-tax loss of $1.8 billion and a negative operating cash flow of $3 billion, was consistent with the expectations which led to the September 19 downgrade of the company's long-term rating to B3. Standard & Poor's Ratings Services has placed its 'B' senior unsecured debt issue ratings on Ford Motor Co. on CreditWatch with negative implications. At the same time, S&P affirmed all other ratings on Ford, Ford Motor Credit Co., and related entities, except the rating on Ford Motor Co. Capital Trust II 6.5% cumulative convertible trust preferred securities, which was lowered to 'CCC-' from 'CCC.' Fitch Ratings has also placed Ford Motor Company's 'B+/RR3' senior unsecured debt on Rating Watch Negative reflecting Ford's intent to raise secured financing that would impair the position of unsecured debtholders. Under Fitch's recovery rating scenario it was estimated that unsecured holders would recover approximately 68% in a bankruptcy scenario, equating to a Recovery Rating of 'RR3' (50-70% recovery). FORD MOTOR: S&P Puts ABS Transaction Ratings on Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on eight U.S. single-issue synthetic ABS transactions related to Ford Motor Co. on CreditWatch with negative implications. In addition, the rating on one U.S. single-issue ABS transaction related to Ford Motor Co. Capital Trust II is lowered to 'CCC-' from 'CCC'. The Oct. 23 placement of the senior unsecured debt ratings on Ford on CreditWatch with negative implications and the downgrade of Ford Motor Co. Capital Trust II do not have any immediate rating impact on the Ford-related ABS supported by collateral pools of consumer auto loans or auto wholesale loans. Each of the eight securitizations with ratings placed on CreditWatch negative is weak-linked to Ford's senior unsecured debt. The lowered rating on STEERS Credit-Backed Trust Series 2002-3 F is weak-linked to the rating on Ford Motor Co. Capital Trust II's preferred stock. Either Ford or Ford Motor Co. Capital Trust II provides the underlying collateral or referenced obligations in the affected securitizations, as indicated below. The Oct. 23 placement of the ratings on Ford on CreditWatch negative and the downgrade of Ford Motor Co. Capital Trust II reflect the potential for unsecured creditors to be disadvantaged if Ford were to incur a material amount of secured borrowings. Ratings Placed On Creditwatch Negative * Corporate Backed Trust Certificates Ford Motor Co. Debenture-Backed Series 2001-36 Trust Rating ------ Class To From Role of Ford ----- -- ---- ------------ A-1 B/Watch Neg B Underlying collateral A-2 B/Watch Neg B Underlying collateral * Corporate Backed Trust Certificates Ford Motor Co. Note-Backed Series 2003-6 Trust Rating ------ Class To From Role of Ford ----- -- ---- ------------ A-1 B/Watch Neg B Underlying collateral * CorTS Trust for Ford Debentures Rating ------ Class To From Role of Ford ----- -- ---- ------------ Certs B/Watch Neg B Underlying collateral * CorTS Trust II for Ford Notes Rating ------ Class To From Role of Ford ----- -- ---- ------------ Certs B/Watch Neg B Underlying collateral * Freedom Certificates US Autos Series 2004-1 Trust Rating ------ Class To From Role of Ford ----- -- ---- ------------ A B/Watch Neg B Underlying collateral X B/Watch Neg B Underlying collateral * PPLUS Trust Series FMC-1 Rating ------ Class To From Role of Ford ----- -- ---- ------------ Certs B/Watch Neg B Underlying collateral * PreferredPLUS Trust Series FRD-1 Rating ------ Class To From Role of Ford ----- -- ---- ------------ Certs B/Watch Neg B Underlying collateral * SATURNS Trust No. 2003-5 Rating ------ Class To From Role of Ford ----- -- ---- ------------ Units B/Watch Neg B Underlying collateral * Trust Certificates (TRUCs) Series 2002-1 Trust Rating ------ Class To From Role of Ford ----- -- ---- ------------ A-1 B/Watch Neg B Underlying collateral Rating Lowered * STEERS Credit-Backed Trust Series 2002-3 F Rating Class To From Role of Ford Motor Co. Capital ----- -- ---- ------------------------------ Trust II Certs CCC- CCC Referenced obligation FORD MOTOR: DBRS Comments on Q3 Results & May Cut Ratings --------------------------------------------------------- Dominion Bond Rating Service notes that Ford Motor Company reported that it plans to restate previous financial results from 2001 through to the second quarter of 2006 to correct the accounting for certain derivative transactions under Statement of Financial Accounting Standards (FAS) 133. DBRS believes that the restatements will not have a material impact on the financial profile of the Company and, hence, does not warrant any rating actions at this time. Although the restatements would affect the net income reported in those periods, the transactions are non-cash and the restatements, on a net basis, are not expected to have a notable impact on the Company's financial position. More importantly, the restatements do not affect the availability of the majority of the Company's committed credit facilities. As at the end of September 30, 2006, the Company has about $6 billion of contractually committed credit facilities with financial institutions. DBRS notes that the accounting error occurred at Ford Motor Credit Company, Ford's wholly owned finance subsidiary. Ford Credit had incorrectly accounted for certain interest rate swaps which it used to hedge against the interest rate risk inherent in certain long-term fixed rate debt. Ford has indicated that the restatements will have no impact on the Company's cash. The restatements will affect the Company's preliminary financial results for the 2006 third quarter announced today and will improve the Company's results in 2002 materially. However, the impact of the restatements on the other affected periods cannot be determined at this time. Ford expects to finalize the restatement amounts by the time of the filing of the Quarterly Reports on Form 10-Q for the quarter ended September 30, 2006, usually within 45 days after the period end. DBRS expects the Company to file its restated statements to compile statutory requirements. However, if the Company is not able to file its restated financial statement on time, DBRS will assess the situation and will take appropriate rating actions at that time. In addition, DBRS notes that, during a discussion of the third quarter results, the Company has indicated that it may tap the secured market in the future. If the Company were to issue secured debt, DBRS, in accordance with policy, would assign the most senior rating of Ford, which is currently B with a Negative trend, to the secured debt. Consequently, the ratings of the unsecured debts of Ford would be lowered by at least one notch to B (low) with a Negative trend. Additionally, the unsecured debt ratings of Ford Motor Credit Company and Ford Credit Canada Limited would be lowered accordingly to maintain the one rating differential between the credit company and the parent company. DBRS notes that the weak third quarter results announced by Ford today are in line with expectations. Although the costs associated with accelerating the "Way Forward" plan are higher than anticipated, DBRS believes that the Company should have sufficient liquidity on hand to fund the initiatives as well as ongoing operating needs. However, the Company continues to face significant headwinds to turn itself around. In addition, the Company has much less financial flexibility going forward due to a shrinking cash position from expected negative cash flow from operations through 2008 and cash outlays related to the restructuring initiatives. DBRS believes that the Company may face liquidity problems if there are delays or problems in executing the "Way Forward" plan. Hence, DBRS may take rating action if progress in cost reduction is stalled or the new products fail to support the Company's effort to achieve the market share target. FRITH CONTENT: Brings In Joint Administrators from KPMG ------------------------------------------------------- Richard John Hill and David John Crawshaw of KPMG LLP were appointed joint administrators of Frith Content Ltd. (Company Number 03842886) on Oct. 11. KPMG LLP -- 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. Frith Content Ltd. can be reached at: Friths Barn Larkhams Farm The Street Teffont Salisbury Wiltshire SP3 5QP United Kingdom Tel: 01722 716 376 Fax: 01722 716 886 GENERAL MOTORS: Posts US$115 Million Net Loss in Third Quarter -------------------------------------------------------------- General Motors Corp. reported a net loss of US$115 million for the third quarter of 2006, compared with a loss of US$1.7 billion for the year-ago quarter. The net loss for this year's third quarter included US$644 million in charges for special items, including goodwill impairment at General Motors Acceptance Corp. and an increase to the charge associated with Delphi Corp.'s reorganization. GM reported 2006 third-quarter adjusted net income, excluding special items, of US$529 million on revenue of US$48.8 billion. These results represent a US$1.6 billion improvement from the year-ago loss of US$1.1 billion. GM's global automotive operations almost fully accounted for the improvement, while lower GMAC results were more than offset by benefits associated with certain tax matters. As a result of progress in ongoing discussions regarding the bankruptcy filing by Delphi and updated estimates related to certain benefit guarantees, GM has significantly narrowed the range of its estimated potential exposure related to this filing. The new range is between US$6 and US$7.5 billion pre- tax, as compared to a previously disclosed range of US$5.5 to US$12 billion. GM believes the more likely amount of the liability is at the lower end of this new range. Reflecting these updated estimates, GM has also increased the reserve for its contingent liability for Delphi by US$500 million in the third quarter, bringing the total charges taken to date to US$6 billion pre-tax. In addition to these charges, the final agreement with Delphi may result in GM agreeing to reimburse Delphi for certain labor expenses to be incurred upon and after Delphi 's emergence from bankruptcy. The initial payment in 2007 is not expected to exceed approximately US$400 million pre- tax, and the ongoing expenses would be of limited duration and estimated to average less than US$100 million pre-tax annually. GM expects these payments to be far exceeded by anticipated reductions in Delphi material cost premiums. "Our third quarter results again reflect significant progress in our fast-paced initiatives to turn around our business and create a company that is leaner, faster and positioned for long- term sustainable growth," said Chairman and Chief Executive Officer Rick Wagoner. "Our turnaround efforts in North America and Europe are well underway, and having a large impact on the bottom line, as evidenced by the US$1.6 billion improvement for the quarter. This improvement in North America and Europe, combined with the strong sales growth and earnings performance we see in Asia and Latin America, confirm that our plan is on track. We have more work to do, and we remain focused on continuing progress in the quarters to come. "In addition to the automotive turnaround, our near-term priorities include the successful resolution of the Delphi negotiations and closing the GMAC transaction," said Mr. Wagoner. "While a number of important issues still remain to be resolved, we are encouraged by the progress we have made on Delphi, and remain optimistic that we can achieve a consensual agreement. Regarding GMAC, we have completed several key milestones in the process and continue to work toward a fourth- quarter close." GM Automotive Operations Net income from global automotive operations improved by US$1.5 billion year-over-year, posting a loss of US$116 million on an adjusted basis, excluding special items (reported net loss of US$62 million). This improvement is due primarily to significant improvement in North America, along with continued strong performance in other regions. GM's global market share in the third quarter was 13.9%, up slightly from the second quarter market share of 13.7%, but down from 14.4% in the third quarter of 2005. The change in market share is largely attributable to the company's strategy of reducing sales of low-margin daily rental vehicles in North America and Europe. GM share in the U.S., however, set a stronger pace in the third quarter at 25.1%, its highest quarterly result in 2006. GM North America posted an adjusted net loss of US$367 million in the third quarter of 2006 (reported net loss of US$374 million), a US$1.3 billion improvement year-over-year, despite a decrease in production of 96,000 units. This significant progress largely reflects improvements in structural costs, as the company executes the pension, health care and manufacturing cost reduction initiatives related to its North American turnaround plan. The structural cost reductions, which are on track to total US$6 billion in 2006, far offset the impact of the lower production for the quarter. "There continues to be excellent progress in North America, with over US$3.4 billion of net income improvement in the first nine months of the year. We are encouraged by the results, but we recognize that there is still more work to be done," Mr. Wagoner said. "We are on track to meet the structural cost reduction target of US$9 billion on an average annual running rate basis by the end of 2006. Just as important, our aggressive new product launch program, a result of our increased capital spending, continues this fall with the introduction of our all- new Chevrolet Silverado and GMC Sierra pickups and the Saturn Outlook and GMC Acadia crossovers." GM Europe posted an adjusted net loss for the quarter of US$16 million (reported net loss of US$103 million) reflecting an improvement of US$105 million from the prior year's loss of US$121 million. The results reflect continued execution of the GME restructuring plan, emphasizing both structural cost reductions and improved quality of sales. "Our turnaround in Europe is in full gear. The region continues to make strides in cost reduction, augmented by pricing improvements arising from a focused sales and marketing strategy including lower rental fleet volume," Mr. Wagoner said. "We are seeing strong results from our Chevrolet brand, which posted record sales in Europe for the quarter. And, the newly launched Opel/Vauxhall Corsa is on track to exceed its 2006 objectives, with approximately 130,000 orders already placed in Europe." GM Asia Pacific posted adjusted net earnings of US$83 million for the third quarter (reported net earnings of US$231 million), down from last year's earnings of US$188 million. The difference primarily reflects the loss of income from Suzuki following the reduction in GM's equity interest in Suzuki and costs associated with launching the important all-new Holden Commodore and Statesman models in Australia. Strong sales performance in the region continued as market share increased to 6.2% from 5.9%, driven primarily by growth in Korea and China. GM products continue to gain strong acceptance in the fast- growing China market, with record third quarter sales of 192,000 units, up 17% over the same period last year. GM's global sales of GM Daewoo products exceeded 276,000 units in the third quarter, up 21% over third quarter 2005. GM Latin America, Africa and Middle East posted strong adjusted and reported net earnings of US$184 million for the third quarter, which reflects an improvement of US$153 million from the year-ago period. The results primarily reflect an increase in volume generated by new product launches throughout the region. Market share in the region increased to 17.3% from 16.7% in the year-ago period as a result of strong sales in Brazil, South Africa, Colombia and the Middle East. "Our Latin America, Africa and Middle East region posted their best quarterly financial results in nine years," said Mr. Wagoner. "We are seeing strong performance and growth in virtually every market in the region - - a great example of leveraging our global product portfolio in key growth markets." GMAC GMAC Financial Services earned adjusted net income of US$346 million in the third quarter of 2006, as compared to record net income in the year-ago period of US$654 million. GMAC's reported net loss for the quarter totaled US$349 million, which included non-cash goodwill impairment charges of US$695 million after-tax related to GMAC's Commercial Finance business. GMAC's financing operations earned US$136 million for the third quarter, as compared to US$139 million earned in the year-ago period. These results include an expense of US$135 million related to GMAC's successful third quarter offer to repurchase US$1 billion worth of certain zero coupon bonds, which will result in improved earnings in future quarters. Auto Finance results otherwise benefited from an increase in net financing revenue as a result of strong retail financing penetration as well as lower provisions for credit losses. ResCap's net income was US$76 million in the third quarter of 2006, down from US$282 million earned in the third quarter of 2005. The decrease in earnings was attributable to the challenging U.S. mortgage market that has negatively impacted margins and credit performance despite year-over-year increases in production. Mortgage originations totaled US$51.5 billion for the quarter, representing a slight increase from US$51.3 billion in the same period in the prior year. GMAC's Insurance operations generated record quarterly net income of US$191 million in the third quarter, up US$102 million from earnings of US$89 million in the year-ago period, primarily attributable to a combination of favorable loss performance and higher capital gains. Excluding the goodwill impairment charge, GMAC's Other segment, which includes the Commercial Finance business unit and GMAC's equity investment of approximately 22% in Capmark Financial Group Inc. (Capmark), incurred an adjusted loss of US$57 million (reported net loss of US$752 million including the goodwill impairment charge), compared to US$144 million earned in the same period last year. This decline results partially from GMAC's reduction in ownership interest of Capmark as a result of the first quarter sale. In addition, it includes the negative impact of higher credit provisions at Commercial Finance. GMAC paid GM a US$500 million dividend in the third quarter, resulting in 2006 year-to-date cash dividends of US$1.9 billion. GMAC continues to maintain adequate liquidity, while prudently reducing its excess levels of cash to more moderate levels with cash reserve balances at Sept. 30, 2006 of US$14.1 billion, including US$9.1 billion in cash and cash equivalents and US$5 billion invested in marketable securities. This compares with cash balances of approximately US$23 billion at June 30, 2006. Cash and Liquidity Cash, marketable securities, and readily available assets of the Voluntary Employees' Beneficiary Association trust totaled US$20.4 billion at Sept. 30, 2006, down from US$22.9 billion on June 30, 2006, but up from US$19.2 billion on Sept. 30, 2005. GM withdrew US$2 billion from the VEBA trust in the third quarter to fund health care. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Oct. 11, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short- term corporate credit ratings on General Motors Corp. would remain on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. In a TCR-Europe report on June 22, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. GOODYEAR TIRE: S&P Places B- Ratings on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'B-' ratings on Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust's class A-1 and A-2 certificates on CreditWatch with negative implications. The CreditWatch placements follow the Oct. 16 placement of the ratings assigned to Goodyear Tire & Rubber Co. on CreditWatch with negative implications. Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust is a swap-independent synthetic transaction that is weak-linked to the underlying securities, Goodyear Tire & Rubber Co.'s 7% notes due March 15, 2028. INCO LTD: Companhia Vale do Rio Doce Acquires 75.7% Stake --------------------------------------------------------- Companhia Vale do Rio Doce reveals that 174,623,019 common shares of Inco Limited have been validly deposited to CVRD's offer to purchase for cash all of the outstanding common shares of Inco. CVRD has taken up and accepted for payment all shares tendered, which represent 75.66% of the issued and outstanding Inco common shares on a fully diluted basis. CVRD also extended the expiry date of the CVRD Offer to enable the remaining Inco shareholders to receive prompt payment of the CDN$86.00 per share consideration under the CVRD Offer. The CVRD Offer will now expire at midnight (Toronto time) on Nov. 3, 2006. "Inco's Board and management believe that combining CVRD and Inco presents a great opportunity to create value," said Scott Hand, Inco's Chairman and Chief Executive Officer. "We plan to assist CVRD in every way we can to ensure a smooth integration of our two companies, to create a new global leader in the metals and mining industry." "Inco has a long and storied history and our employees can take can great pride in what we have achieved," Mr. Hand added. "Now we're looking forward to an exciting new phase in our history." About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INTERIOR SYSTEMS: Names Eileen T. F. Sale to Liquidate Assets ------------------------------------------------------------- Eileen T. F. Sale of Sale Smith & Co. Limited was appointed Liquidator of Interior Systems By Design Limited (formerly Dysart Services Limited and ADM Interior Systems Limited) on Oct. 13 for the creditors' voluntary winding-up procedure. Headquartered in Milton Keynes, England, Interior Systems By Design Limited -- http://www.interiorsystems.co.uk/-- is a specialist interior design and contracting company, with experience in obtaining the best use of space for all types of premises. Interior Systems offers a package to cover all aspects within the working office, manufacturing area, or business environment, centralizing on several key areas. The company's services include partitioning, communication wiring, data wiring, carpeting, office seating, storage systems, electrical trunking, lighting, heating and air conditioning, alarm systems, among others. ISOFT GROUP: AIDB to Investigate Former Auditor RSM Robson ---------------------------------------------------------- The Accountancy Investigation and Discipline Board intends to investigate RSM Robson Rhodes LLP in relation to the firm's audit on iSOFT Group plc's financial statements for the years ended April 30, 2003, April 30, 2004, and April 30, 2005. The AIDB is also investigating the company's executive or non- executive directors, who are members of the accountancy bodies that support the AIDB, in the relevant periods. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial independent investigation into possible accounting irregularities conducted by the company's current auditors, Deloitte & Touche, in July 2006 did not uncover evidence that any of the current non-executive directors had any knowledge of any irregularities. The company believes that the AIDB investigation is likely to cover similar matters to the investigation by the FSA that is already underway and will of course give its cooperation to the investigation. About iSoft Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * An initial probe, conducted by Deloitte & Touche and Eversheds LLP, found evidence of accounting irregularities affecting the financial years ended April 30, 2004, and April 30, 2005. The group submitted the findings, which contained grounds for a more formal investigation, to the Financial Services Authority, a British regulator. According to the company, Deloitte was appointed as the group's auditor in July 2005 and was not therefore acting for the group during the period covered by the investigation. After the initial review, the board suspended Steve Graham, the group's commercial director, pending the outcome of the formal investigation. The investigation concerns several contracts where it would appear that revenues have been recognized earlier than they should have been in the financial years 2004 and 2005 in accordance with the accounting policy in force at that time. The irregularities uncovered to date do not appear to have affected the group's cash position. KRIMSON LIMITED: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of Krimson Limited confirmed Oct. 13 the appointment of Stephen Franklin of Panos Eliades, Franklin & Co. as the company's Liquidator. The company can be reached at: Krimson Limited 86 Highgate High Street Haringey London N6 5HX United Kingdom Tel: 020 8340 6712 LADBROKES PLC: S&P Removes BB Debt Ratings from Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' ratings on the senior unsecured debt of U.K.-based gaming operator Ladbrokes PLC and its guaranteed subsidiary Ladbrokes Group Finance PLC, and removed the ratings from CreditWatch with negative implications. Ladbrokes has five bond issues outstanding under its GBP2 billion Euro MTN program, which amounted to GBP825.4 million at June 30, 2006. The ratings on these issues have been on CreditWatch with negative implications since the Feb. 23 downgrade of Ladbrokes (formerly Hilton Group PLC). They have remained on CreditWatch due to an outstanding requirement for additional information on the structure of priority claims within the new group, following the sale of Ladbrokes' former hotels business to Hilton Hotels Corp.. "Ladbrokes has now provided the information required and the conclusion of our analysis is that the amount of priority claims at June 30, 2006, did not require the ratings on the senior unsecured debt to be notched down under our structural subordination methodology," said Standard & Poor's credit analyst Philip Temme. The ratings on Ladbrokes continue to reflect the group's market leadership in the stable and regulated U.K. betting industry, and moderate financial profile. Ladbrokes' 2,129 U.K. betting shops and telephone-betting operations make it one of the two U.K. market leaders in fixed-odds betting, with a market share of about one-quarter, close to that of the other large operator, William Hill PLC. Ladbrokes has a good national spread of betting shops, the majority of which have been refurbished in recent years. The group combines a nationwide presence with a strong brand name, and benefits from relatively stable earnings owing to the averaging-out effect of a very large number of small bets. The group's strategy of fully using its free cash flow, selected international expansion, and stated intention to return to the casino business will likely limit future potential for decreasing financial leverage. LONGMANOR PROJECTS: Creditors' Meeting Slated for October 30 ------------------------------------------------------------ Creditors of Longmanor Projects Limited (Company Number 05227938) will meet at 11:00 a.m. on Oct. 30 at: Bond Partners LLP The Grange 100 High Street London N14 6TB 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. 27 at: T. Papanicola Administrator Bond Partners LLP The Grange 100 High Street London N14 6TG United Kingdom Tel: 020 8444 2000 Fax: 020 8444 3400 LOOK 2: Creditors Confirm Liquidators' Appointment -------------------------------------------------- Creditors of Look 2 Training Limited confirmed Oct. 13 the appointment of Mark Peter George Roach and Graham David Randall of BDO Stoy Hayward LLP as Joint Liquidators. The company can be reached at: Look 2 Training Limited Unit 37 Teignbridge Business Centre Cavalier Road Heathfield Industrial Estate Newton Abbot Devon TQ12 6TZ United Kingdom Tel: 01626 834441 MANSARD MORTGAGES: Moody's Rates Class B2 Notes at (P)Ba2 --------------------------------------------------------- Moody's Investors Service assigned provisional credit ratings to these classes of Notes issued by Mansard Mortgages 2006-1PLC: -- GBP[157,500,000] Class A1 Mortgage Backed Floating Rate Notes due [2048]: (P)Aaa, -- GBP[217,500,000] Class A2 Mortgage Backed Floating Rate Notes due [2048]: (P)Aaa; -- GBP[65,000,000] Class M1 Mortgage Backed Floating Rate Notes due [2048]: (P)Aa2, -- GBP[27,500,000] Class M2 Mortgage Backed Floating Rate Notes due [2048]: (P)A2, -- GBP[12,500,000] Class B1 Mortgage Backed Floating Rate Notes due [2048]: (P)Baa2, and -- GBP[20,000,000] Class B2 Mortgage Backed Floating Rate Notes due [2048]: (P)Ba2. This transaction represents the third securitization of mortgage loans originated by Rooftop Mortgages Limited and the first under the Mansard Mortgages program. The assets supporting the Notes are near prime and non-conforming mortgage loans secured on residential properties in United Kingdom, Wales and Scotland. The total debt raised by Mansard Mortgages 2006-1 plc will be used to purchase a portfolio of mortgage loans and will be split as follows: [75.00]% Class A Notes, [13.00]% Class M1 Notes, [5.50]%, Class M2 Notes, [2.50]% Class B1 Notes and [4.00]% Class B2 Notes. The reserve fund will be [0.75%] of the initial transaction amount at closing with a target of [0.80]% of the of the initial transaction amount. The ratings of the Notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, and the legal and structural integrity of the issue. The ratings address the expected loss posed to investors by the legal final maturity. 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 the yield to investors. Rooftop Mortgages Limited, with delegation to Crown Mortgage Management Limited is the day-to-day servicer for the mortgage loans. Vertex Mortgage Services Limited will be the Standby Servicer for the pool, if the appointment of CMM as servicer is terminated. Moody's issues provisional ratings in advance of the final sale of securities and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive rating to the Notes. A final rating may differ from a provisional rating. NORMAN OFFER: Appoints Rothman Pantall as Administrators -------------------------------------------------------- R. D. Smailes and S. B. Ryman of Rothman Pantall & Co. were appointed joint administrators of Norman Offer Ltd. (Company Number 05460581). Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. It is one of the largest independent firms of Chartered Accountants in the region, and rank in the top 40 in the United Kingdom. Headquartered in Eastleigh, England, Norman Offer Ltd. is engaged in freight transport by road. NPR LIMITED: Names Gerald Irwin as Administrator ------------------------------------------------ Gerald Irwin of Irwin & Company was named administrator of NPR (U.K.) Ltd. (Company Number 4838761) on Oct. 6. The administrator can be reached at: Gerald Irwin Irwin & Company Station House Midland Drive Sutton Coldfield Birmingham West Midlands B72 1TU United Kingdom Tel: 08700 111812 Fax: 08700 111813 E-mail: mail@irwinuk.net NPR (U.K.) Ltd. can be reached at: 158 Warstones Road Penn Wolverhampton West Midlands WV4 4LH United Kingdom Tel: 01902 455 475 Fax: 08454 585 246 SEAGATE TECHNOLOGY: 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 Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Seagate Technology. Moody's also confirmed its probability-of-default ratings and assigned loss-given-default ratings on these bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ---------- US$300 million Senior Notes due 2009 Ba1 LGD4 56% US$600 million Senior Notes due 2011 Ba1 LGD4 56% US$600 million Senior Notes due 2016 Ba1 LGD4 56% US$230 million 6.8% Convertible Senior Notes due 2010 Ba1 LGD4 56% US$60 million 5.75% Convertible Subordinated Debentures due 2012 Ba2 LGD6 96% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated\ debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Scotts Valley, California, Seagate Technology, -- http://www.seagate.com/-- designs, manufactures and markets rigid disc drives (disc drives or hard drives), which are used as the primary medium for storing electronic information in systems ranging from desktop and notebook computers, and consumer electronics devices to data centers delivering information over corporate networks and the Internet. Seagate Technology has R&D and product sites in: Silicon Valley, California; Pittsburgh, Pennsylvania; Longmont, Colorado; Bloomington and Shakopee, Minnesota; Springtown, Northern Ireland; and Singapore. Manufacturing and customer service sites are located in: California, Colorado, Minnesota, Oklahoma, Northern Ireland, China, Malaysia, Singapore and Thailand. SEVERSTAL OAO: Launches Global Stock Offering --------------------------------------------- OAO Severstal launched and commenced investor meetings of the global offering of its ordinary shares and Global Depositary Receipts, each GDR representing one ordinary share. The Global Offering The Global Offering will comprise an offering by Frontdeal Limited (Selling Shareholder) of existing ordinary shares including in the form of GDRs to international institutional and professional investors outside of the Russian Federation, including to qualified institutional buyers in the United States under Rule 144A, and an offering of ordinary shares in the Russian Federation. Severstal is currently approximately 90% owned by Alexey Mordashov through several entities, including the Selling Shareholder. Mr. Mordashov intends to sell a share of his current holding in connection with the Global Offering with a view to increase the post IPO free float to up to 25%. Immediately following the Global Offering, Severstal intends to undertake a capital increase through an open subscription for newly-issued ordinary shares, for which the shareholder entities controlled by Mr. Mordashov (including the Selling Shareholder) intend to subscribe in proportion to their existing holdings exercising their pre-emption rights, using some of the proceeds of the Global Offering. In addition, the Selling Shareholder has granted the Joint Global Coordinators an over-allotment option to purchase existing ordinary shares in the forms of GDRs, representing up to 15% of the total number of existing shares in the form of GDRs to be sold in the Global Offering. Severstal intends to use the gross proceeds of this capital increase to continue improving the quality of its production facilities and improve operating efficiencies throughout its global operating platform, and to take advantage of potential opportunities to expand its core business in line with its corporate strategy, including the funding of potential acquisitions of assets and participation in joint ventures. Citigroup, Deutsche Bank and UBS Investment Bank are Joint Global Coordinators and Joint Bookrunners for the Global Offering. Corporate Governance Code In line with previous announcements, Severstal's Board of Director's approved the new Corporate Governance Code on Oct. 20. As part of the new corporate governance arrangements, Severstal is arranging for its 10-member Board to be chaired by an Independent Non-Executive Chairman and for one half of its Board to be comprised of Independent Non-Executive Directors. "Interest at this stage in the offering process has been very encouraging and it is clear that there is already a high regard for Severstal in the international investment community," Alexey Mordashov, CEO of OAO Severstal, said. "I now look forward to meeting investors to underline the unique strengths of Severstal's business, our focus on growth and value creation and our commitment to U.K. corporate governance standards." About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of approximately EUR150 per ton. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * As reported in the TCR-Europe on Oct. 12, Moody's Investor's Service upgraded the corporate family rating of OAO Severstal from B1 to Ba3 and the rating for the Loan Participation Notes totaling US$700 million from B2 to B1. Moody's said the outlook on all ratings is stable. In a TCR-Europe report on July 5, Standard & Poor's Ratings Services kept its 'B+' long-term corporate credit rating on Russian steelmaker OAO Severstal on CreditWatch with positive implications following the consolidation of the company's mining assets. The rating was placed on CreditWatch on May 26, following the announcement of a previously agreed merger between Severstal and Luxembourg-based steelmaker Arcelor S.A. This merger was cancelled on June 30. As reported in the TCR-Europe on June 28, Fitch Ratings maintained the Rating Watch Positive status for OAO Severstal's ratings of Issuer Default BB-, senior unsecured BB-, Short-term B and National Long-term A+. SMITH & SAMUEL: K. B. Stout Leads Liquidation Procedure ------------------------------------------------------- K. B. Stout was appointed Liquidator of Smith & Samuel Construction Limited on Oct. 15 for the creditors' voluntary winding-up proceeding. The company can be reached at: Smith & Samuel Construction Limited 38 Redden Court Road Romford Essex RM3 0XA United Kingdom Tel: 01708 342 240 Fax: 01708 371 6616 STUDLEY CONTRACTORS: Taps Poppleton & Appleby as Administrators --------------------------------------------------------------- M. D. Hardy and M. T. Coyne of Poppleton & Appleby were appointed joint administrators of Studley Contractors Ltd. (Company Number 4053773) on Oct. 9. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors Studley Contractors Ltd. can be reached at: Crooks Lane Studley Warwickshire B80 7QX United Kingdom Tel: 01527 850 031 Fax: 01527 857 822 SWINFAST LIMITED: Creditors' Meeting Slated for October 31 ---------------------------------------------------------- Creditors of Swinfast (Chiswick) Limited (Company Number 04918011) (t/a The World's End Distillery & Restaurant) will meet at noon on Oct. 31 at: Harris Lipman LLP New Broad Street House 35 New Broad Street London EC2M 1NH 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. 30 at: F. Khalastchi Joint Administrator Harris Lipman LLP New Broad Street House 35 New Broad Street London EC1M 1NH United Kingdom Tel: 0845 3385292 Harris Lipman LLP -- http://www.harrislipman.co.uk/-- is a firm of chartered accountants and licensed insolvency practitioners. It trades as a limited liability partnership since April 1, 2005. VEDARLO LIMITED: Taps Joint Administrators from Cresswell --------------------------------------------------------- Gordon Craig and Daniel Paul Hennessy of Cresswell Associates Ltd. were appointed joint administrators of Vedarlo Ltd. (Company Number 01442809) (t/a Don Antonio Limited) on Oct. 6. The administrators can be reached at: Cresswall Associates Limited West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Vedarlo Limited can be reached at: 85-87 Red Bank Road Blackpool Lancashire FY2 9HZ United Kingdom Tel: 01253 352 440 VISION CORPORATION: Appoints Mark Reynolds as Liquidator -------------------------------------------------------- Mark Reynolds of Valentine & Co. was appointed Liquidator of The Vision Corporation (U.K.) Limited on Oct. 12 for the creditors' voluntary winding-up proceeding. Headquartered Wokingham, United Kingdom, The Vision Corporation (U.K.) Limited retails computer, audio and visual equipment. VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 ----------------------------------------------------------- Vneshtorgbank JSC released its consolidated financial results for the first half ended June 30, 2006. For the first six months of 2006, VTB posted a 295% increase in net profit to US$576 million on a 96% increase in revenues to US$1.753 billion. For the January-June 2006 period, the company's net interest income rose 75.2% while net fee and commission income hiked more than 100%. Credits and advances to clients rose 18.9% to US$23.7 billion while the value of client accounts rose 45.6%. VTB attributed the rise in operating volumes and profit to its acquisition of Promstroybank and European banks previously owned by the Bank of Russia. As of June 30, 2006, VTB had US$45.3 billion in total assets, US$39.5 in total liabilities and US$4.3 billion in shareholders' equity. Profit Forecast The company expects to post RUR30 billion (US$1.1 billion) in net profit this year, says RIA Novosti citing Chief Executive Andrei Kostin. "That is considerably higher than last year," Mr. Kostin said. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * As reported in the TCR-Europe on July 31, following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month -------------------------------------------------------------- JSC Vneshtorgbank will decide in November whether to commence a takeover of Industry & Construction Bank of St. Petersburg (Promstroybank), RIA Novosti reports citing Chief Executive Andrei Kostin as its source. VTB currently owns 75% plus three shares of Promstroybank. The company has increased in operating volumes and profit in the first half of 2006 after its acquisition of Promstroybank. The regional bank's shareholders has already voted in favor of a takeover deal by VTB. Once a decision for takeover is reached, VTB will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in in universal banking with a special franchise in corporate finance and investment banking. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * As reported in TCR-Europe on July 31, following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. WATERSHED LIMITED: Appoints Vantis to Administer Assets ------------------------------------------------------- Frank Wessely and Peter James Hughes-Holland of Vantis PLC were appointed joint administrators of The Watershed (London) Ltd. (Company Number 03156686) on Oct. 11. Headquartered in London, England, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The Watershed London Ltd. can be reached at: Church Street Croydon Surrey CR0 1RH United Kingdom Fax: 020 8649 9282 XEROX CORP: Earns US$536 Million in Quarter Ended September 30 -------------------------------------------------------------- Xerox Corporation reported third-quarter 2006 net income of US$536 million, compared with US$63 million of net income earned in the equivalent prior year quarter ended Sept. 30, 2005. The company's third-quarter earnings this year include a previously announced tax benefit of 45 cents per share partially offset by restructuring of 7 cents per share and a litigation charge of 7 cents per share. "Through earnings expansion, annuity growth and a strong financial position that allows for stock buyback and acquisitions, we exceeded our expectations this quarter and are delivering on our commitment to build shareholder value," said Anne M. Mulcahy, Xerox chairman and chief executive officer. Total revenue of US$3.8 billion grew 2% in the third quarter. Post-sale and financing revenue, which represents about 75% of Xerox's total revenue, increased 3%, largely driven by 4% post- sale growth from digital systems. Total revenue and post-sale revenue included a currency benefit of 1 percentage point. "The leading indicators of our growth strategy - which is all about boosting our annuity stream through growth in digital, services and color - continued to trend positively in the third quarter," added Ms. Mulcahy. "Install activity was up for Xerox digital systems in key markets like office multifunction and production color. Our expertise in document management flowed through to post-sale growth of 7% from global services. And, our broad portfolio of color technology fueled a 16% increase in post-sale revenue from color." About 48% of the company's equipment sales in the third quarter were from color products, a year-over-year increase of 7 points. Total revenue from Xerox's industry-leading color systems grew 16% in the third quarter and now represents 36% of the company's revenue, up 4 points from a year ago. The number of pages printed on Xerox color systems grew 35% in the quarter. While equipment sale revenue was down 1% in the third quarter including a 1 point benefit from currency, installs of key products like the Xerox iGen3 Digital Production Press and DocuColor systems as well as WorkCentre multifunction systems drove up activity, fueling future gains in the company's post- sale revenue. Signings for document management services were up 16% year to date and were about flat in the third quarter as the company experienced longer lead times for finalizing multi-year contracts. Xerox's production business provides commercial printers and document-intensive industries with high-speed digital printing and services that enable on-demand, personalized printing. Total production revenue increased 3% in the third quarter including a 2 point currency benefit. Installs of production black-and-white systems declined 6% with growth in light production only partially offsetting declines in higher-end production printing. Production color installs grew 107%, reflecting accelerated activity for the iGen3 and continued strong demand for the DocuColor 5000 and 7000/8000 series as well as the DocuColor 240/250 multifunction system. Earlier this month, Xerox made several announcements that strengthen its leadership in the production market including the acquisition of XMPie, a leading provider of variable information software; advanced finishing capabilities for the iGen3 and DocuTech 180 Highlight Color system; and a dual-engine printer that sets a new speed record for two-sided, cut-sheet black-and- white printing. Xerox's office business provides document technology and services for businesses of any size. Total office revenue was flat in the third quarter including a 2 point currency benefit. Installs of office black-and-white systems were up 10%, largely driven by 19% growth from Xerox's mid-range line of WorkCentre multifunction products. In office color, installs of multifunction systems were up 46% reflecting strong demand for the color WorkCentre systems launched in May and the continued success of the office version of the DocuColor 240/250. Expanding its competitive offerings for small and medium-sized businesses, Xerox launched in September the WorkCentre 4150, its fastest-ever desktop multifunction system. The company also cited continued improvement in its developing markets operations. Total revenue grew 7% in DMO. Gross margins were 40.2% in the third quarter, a year-over-year decline of 1.1 points. The decline was primarily due to product mix and equipment pricing as well as lower margins in Xerox's global services business as the company incurred upfront costs to support new multi-year managed services contracts. Selling, administrative and general expenses were 25.6% of revenue, a year-over-year improvement of 1.3 points. Xerox generated operating cash flow of US$530 million in the third quarter and closed the quarter with US$1.5 billion in cash and short-term investments. Since launching its stock buyback program last October, the company has repurchased about 78 million shares, totaling US$1.1 billion of the US$1.5 billion program through the third quarter of this year. Also during the quarter, Xerox closed on the US$175 million cash acquisition of Amici LLC, a provider of electronic-discovery services that support litigation and regulatory compliance. In early October, Xerox announced the US$54 million cash acquisition of XMPie, which is expected to close in the next few weeks. Xerox expects fourth-quarter 2006 earnings in the range of 21-24 cents per share, including restructuring charges of about 13 cents per share. Excluding restructuring, Xerox expects fourth-quarter adjusted EPS of 34-37 cents per share. "We expect our fourth-quarter performance will keep us on track to deliver our full-year earnings expectations," said Ms. Mulcahy. About Xerox Headquartered in Stamford, Connecticut, Xerox Corporation (NYSE: XRX) -- http://www.xerox.com/-- develops, manufactures, markets, services, and finances document equipment, software, solutions, and services worldwide. It offers digital monochrome and color systems for customers in the graphic communications industry and enterprises, as well as various prepress and post- press options. Xerox Corporation markets its products through direct sales force, as well as through a network of independent agents, dealers, value-added resellers, and systems integrators. * * * As reported in the Troubled Company Reporter on Aug. 10, 2006, Fitch upgraded Xerox Corp.'s Issuer Default Rating to 'BBB-' from 'BB+', Senior unsecured debt to 'BBB-' from 'BB+' and Trust preferred securities to 'BB' from 'BB-'. In addition, Fitch affirmed the senior unsecured bank credit facility at 'BBB-' and withdrawn the secured term loan rating of 'BBB-' since the secured term loan was repaid and the secured bank facility terminated concurrently with the effectiveness of the new unsecured credit facility. The Rating Outlook is Stable. As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on Stamford, Connecticut-based Xerox Corp. and related entities to 'BB+' from 'BB-', and removed it from CreditWatch, where it was placed with positive implications on Jan. 26, 2006. The upgrade reflected substantial recent debt reductions, good cash flow and growth in equipment sales. The outlook is stable. As reported in the Troubled Company Reporter on Sept. 21, 2005, Moody's Investors Service revised the rating outlook of Xerox Corporation and supported subsidiaries to positive from stable. Moody's previously raised the senior implied rating of Xerox and its financially supported subsidiaries to Ba1 from Ba3. The action was prompted by Xerox's significant debt and leverage reduction over the last year, stable operating profit and free cash flow generation, and the prospects for further strengthening of its credit metrics and overall financial flexibility. XEROX 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. Technology Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Xerox Corp. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings to these securities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$700 million Sr. Notes due 2016 Ba2 Ba1 LGD3 48% US$620 million 9.75% Sr. Notes due 2009 Ba2 Ba1 LGD3 48% US$688 million 7.125% Sr. Notes due 2010 Ba2 Ba1 LGD3 48% US$542 million 7.625% Sr. Notes due 2013 Ba2 Ba1 LGD3 48% US$50 million 6.875% Sr. Notes due 2011 Ba2 Ba1 LGD3 48% US$1.25 billion Unsec. Revolving Credit Facility Ba2 Ba1 LGD3 48% US$752 million Sr. Notes due 2011 Ba2 Ba1 LGD3 48% US$251 million Notes due 2016 Ba2 Ba1 LGD3 48% US$255 million Yen Notes due 2007 Ba2 Ba1 LGD3 48% US$75 million Notes due 2012 Ba2 Ba1 LGD3 48% US$60 million Notes due 2013 Ba2 Ba1 LGD3 48% US$50 million Notes due 2014 Ba2 Ba1 LGD3 48% US$25 million Notes dye 2018 Ba2 Ba1 LGD3 48% US$27 million Notes due 2008 Ba2 Ba1 LGD3 48% US$260 million Euro Senior Notes due 2009 Ba2 Ba1 LGD3 48% Medium Term Notes US$166 million Ba2 Ba1 LGD3 48% Trust Preferred Ba3 Ba2 LGD6 94% Shelf-Sr. Unsec. (P)Ba2 (P)Ba1 LGD3 48% Shelf-Subordinated (P)Ba3 (P)Ba2 LGD6 94% Shelf-Preferred (P)B1 (P)Ba2 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 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 Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/ -- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. In Europe, Xerox maintains operations in Albania, Austria, Cyprus, Estonia, France, Germany, Turkey, Italy, The Netherlands, the United Kingdom, among others. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA New Legal Strategies for Retaining Executives at Troubled Companies Contact: 240-629-3300; http://www.beardaudioconferences.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 * * *