/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061109.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, November 9, 2006, Vol. 7, No. 223 Headlines A U S T R I A BAUPUNKT NENAD: Property Manager Declares Insufficient Assets CRC CARTOUCHE: Property Manager Places Property for Sale GERHARD OSWIRT: Graz Court Orders Business Shutdown IVBA STEINMETZ: Property Manager Names Representative M.G.R. LLC: Property Manager Declares Insufficient Assets RADULOVIC OBREN: Vienna Court Orders Business Shutdown ROBINSON KEG: Vienna Court Orders Business Closure W.M.P. LLC: Wiener Neustadt Court Orders Closing of Business WAGNER HARALD: Vienna Court Orders Business Shutdown B E L G I U M CHIQUITA BRANDS: E.coli Concerns Cue S&P's B Corp. Credit Rating UNITED BISCUITS: Moody's Withdraws Low-B Ratings on LBO F R A N C E AIRBUS SAS: Looks to Cut 80% of Suppliers in Restructuring Move ALCATEL SA: Inks EUR16-Mln Info Program with Fiji Government ALCATEL SA: S&P Keeps BB Rating on CreditWatch Negative ALCATEL SA: Wins Networking Solution Deal with Kazakhtelecom CA INC: Underperformance Spurs Moody's to Affirm Ba1 Rating MAAX HOLDINGS: Moody's Assigns Loss-Given-Default Rating MOSAIC CO: Refinancing Loans From New US$950-Mln Debt Offering MOSAIC CO: Moody's Rates Proposed Sr. Unsecured Debt at Ba1 MOSAIC CO: Fitch Rates Proposed Sr. Unsecured Notes at BB G E R M A N Y AAREAL BANK: Fitch Lifts IDR to A- & Keeps C Individual Rating ASH ABBRUCH: Claims Registration Ends November 15 AUTOHAUS TANGERMUENDE: Claims Registration Ends November 16 AVE SPEDITION: Claims Registration Ends November 17 BIFFAR IMMOBILIEN: Claims Registration Ends November 15 DK GEBAUDESERVICE: Claims Registration Ends November 15 HAUSSERVICE DIROLL: Claims Registration Ends November 15 JANSEN WOMAN: Claims Registration Ends November 15 MARTIN OETKEN: Claims Registration Ends November 16 MEDAX DESIGN: Claims Registration Ends November 17 NRG ENERGY: S&P Affirms B+ Rating on Hedging Arrangements PROSIEBENSAT.1 AG: Italy's Mediaset S.p.A. Eyes 55% Stake TENAX ENERGIE: Creditors' Meeting Slated for November 16 VOLKSWAGEN AG: MAN Contemplates on Buying VW Stake for EUR2 Bln VOLKSWAGEN AG: CEO Bernd Pischetsrieder Resigns H U N G A R Y FLEXTRONICS INT'L: Fitch Downgrades Default Rating to BB+ K A Z A K H S T A N ASTANA-AVTOCENTRE LLP: Creditors Must File Claims by Dec. 3 FAVORA LLP: Proof of Claim Deadline Slated for Dec. 3 KAZATOMPROM JSC: Fitch Assigns BB+ Issuer Default Rating MINSKOYE LLP: Akmola Region Opens Bankruptcy Proceedings SKIF CJSC: Creditors Must File Claims by Dec. 3 SVETOTECHNIKA LLP: Proof of Claim Deadline Slated for Dec. 3 TANDEM LLP: Claims Registration Ends Dec. 3 TRANS UNIVERSAL: Court Begins Bankruptcy Proceedings TRECK OIL: Creditors' Claims Due Dec. 3 TULKUBAS TORG: Court Starts Bankruptcy Procedure URALSK CLEAN: Creditors' Claims Due Dec. 3 K Y R G Y Z S T A N ALA-ARCHINSKAYA PMK: Public Auction Scheduled for Nov. 24 BM-COMPANY LLC: Claims Registration Ends Dec. 27 L I T H U A N I A MAZEIKIU NAFTA: Holding Confidence Vote on CEO Today N E T H E R L A N D S LUCENT TECHNOLOGIES: S&P Keeps B Rating on CreditWatch Negative VNU NV: Appoints James Kilts to Supervisory Board N O R W A Y AKER KVAERNER: Inks NOK350 Million Process Equipment Deal AKER KVAERNER: Inks Reselling Agreement with Alfa Laval R O M A N I A ROMEXTERRA BANK: S&P Lifts Rating on MKB's Stake Acquisition R U S S I A ACHINSKAYA FURNITURE: Bankruptcy Hearing Slated for January 15 ANGARSKAYA GARMENT: Asset Sale Slated for November 28 BAZHENOVSKIY OJSC: Bankruptcy Hearing Slated for February 1 BUILDER CJSC: Court Names A. Trifonov as Insolvency Manager INDUSTRIAL ENGINEERING: Court Names Y. Boyko to Manage Assets ISKRA CJSC: Moscow Court Names S. Suvorov as Insolvency Manager IVANOVO-FURNITURE: Court Names Sh. Fazailov to Manage Assets KALININGRADSKIY BUILDING: Court Starts Bankruptcy Supervision NAZIYA CJSC: Court Names A. Trifonov as Insolvency Manager NORTH-WEST: Fitch Puts B+ IDR on Rating Watch Evolving PETRO-TOBACCO: Court Names A. Trifonov as Insolvency Manager POKACHEV-AUTO-TRANS: Bankruptcy Hearing Slated for November 17 RUS'-INVEST OJSC: Court Names S. Suvorov as Insolvency Manager RUSFINANCE BANK: S&P Assigns BB/B Counterparty Credit Ratings SEVERSTAL OAO: Prices Global Offering at US$12.50 Per Share SEVERSTAL OAO: Grants Over-Allotment Option to Citigroup SLAVINVESTBANK: Fitch Places B- on Issuer Default Rating THERMAL PROTECTION: Bankruptcy Hearing Slated for February 19 TMK OAO: Raises Over US$1 Billion From London IPO TMK OAO: S&P Removes Ratings from CreditWatch After IPO VNESHTORGBANK: Fitch Places BB Default Rating to Armenia Branch WORLD TEXTILE-1: Court Names S. Suvorov as Insolvency Manager YANUS-OIL-PRODUCT: Court Names A. Trifonov as Insolvency Manager * S&P Assigns BB Rating on Bashkortostan's RUR1-Bln Bond Issue S L O V A K R E P U B L I C UNIBANKA: Moody's Affirms D Financial Strength Rating S W E D E N FLEXTRONICS INT'L: Fitch Downgrades Default Rating to BB+ U K R A I N E ALKOSOFT LLC: Court Names T. Tarasenko as Insolvency Manager ATERA LLC: Court Names Oleksandr Chechelnitskij as Liquidator BNTK LLC: Kyiv Court Begins Bankruptcy Supervision Procedure DIBROVA LLC: Court Names Sergij Soldatkin as Insolvency Manager ENTERPRISE KAMELIYA: Court Names Valentina Prutyan as Liquidator KROIT LLC: Court Names P. Akinfiyev as Insolvency Manager MOSAIC CO: Refinancing Loans From New US$950-Mln Debt Offering MOSAIC CO: Moody's Rates Proposed Sr. Unsecured Debt at Ba1 MOSAIC CO: Fitch Rates Proposed Sr. Unsecured Notes at BB SPETSBUD CJSC: Court Names Ivanov Kirilo as Insolvency Manager TECHNOLOGICAL EQUIPMENT: Denis Matvijchuk to Liquidate Assets U N I T E D K I N G D O M 1ST ACCEL: Taps Richard Rones to Liquidate Assets A.G. WATTS: Hires Liquidators from BDO Stoy Hayward LLP AKER KVAERNER: Inks NOK350 Million Process Equipment Deal AKER KVAERNER: Inks Reselling Agreement with Alfa Laval ARCADIA CORPORATION: Names Paul James Fleming Liquidator ASCOT CONSTRUCTION: Bank of Scotland Taps Deloitte as Receivers BOWKER ARCHITECTURAL: Names C.H.I. Moore as Administrator CA INC: Underperformance Spurs Moody's to Affirm Ba1 Rating CAROLINA FURNITURE: Taps KPMG Restructuring to Administer Assets CIRCUIT BASED: Appoints Gerald Irwin to Liquidate Assets COMTEK NETWORK: Brings In BDO Stoy to Administer Assets COTTAGE CRAFTS: Calls In Liquidator from Bulley Davey D.B. ELECTRICAL: Appoints RSM Robson to Administer Assets EASTMAN KODAK: Moody's to Focus Review on KHG's Potential Sale EXEM LIMITED: Taps UHY Hacker Young as Joint Administrators FERGUSONS OF NESTON: Claims Filing Period Ends Dec. 13 FWL TECHNOLOGIES: Barclays Bank Hires PwC as Joint Receivers GENERAL MOTORS: Selling Hybrid Cars to Chinese Market in 2008 GENERAL MOTORS: Declares US$0.25 Per Share Quarterly Dividend GEORGE TOWERS: Brings In Liquidator from Fergusson & Co. Ltd. HOMESTEAD WINDOWS: Creditors Confirm Liquidators' Appointment HOSKINS MANAGEMENT: Hires Administrators from Portland Business JAROKEN LIMITED: Taps Tenon Recovery as Joint Administrators KINGSTAR CONTRACTS: Appoints Begbies Traynor as Administrators MARGAUX MATRIX: Appoints Administrators from Hurst Morrison MORGAN STANLEY: Moody's Assigns D+ Financial Strength Rating NORTEL NETWORKS: Global Operations Center to Create 300 Jobs PRESENTATION CASES: Brings In Mazars LLP to Administer Assets R SCAIFE: Appoints Liquidators from Wilson Field Ltd. SEA CONTAINERS: Wants To Give Up Railway Services In May 2007 TOFU LIMITED: Names Nicholas Wood as Administrator ULTIMATE HENGELSPORT: Creditors' Claims Due Nov. 27 UNITED BISCUITS: Moody's Withdraws Low-B Ratings on LBO VENTURE DISTRIBUTION: Creditors' Meeting Slated for November 17 VERNBERRY LIMITED: Creditors' Meeting Slated for Nov. 14 XPRESS COPY: Hires Liquidators from Lines Henry * Moody's Sees Cash Commingling Risk in EMEA ABS/RMBS Deals * Europe's CMBS Industrial Markets Remain Strong, Moody's Says * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= BAUPUNKT NENAD: Property Manager Declares Insufficient Assets ------------------------------------------------------------- Mag. Gerhard Bauer, the court-appointed property manager for KEG Baupunkt Nenad Njagojevic (FN 252721z), declared Sept. 13 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 9 (Bankr. Case No. 2 S 98/06h). The property manager can be reached at: Mag. Gerhard Bauer Mahlerstrasse 7 1010 Vienna, Austria Tel: 512 97 06 E-mail: ra-g.bauer@aon.at CRC CARTOUCHE: Property Manager Places Property for Sale -------------------------------------------------------- Dr. Gertraud Hofer, the court-appointed property manager for LLC CRC Cartouche Recycling Centre (FN 216238y), declared Sept. 14 that the Debtor's property is up for sale or rent. Headquartered in Oberwart, Austria, the Debtor declared bankruptcy on July 26 (Bankr. Case No. 26 S 79/06d). The property manager can be reached at: Dr. Gertraud Hofer Main Place 11 Atrium Top 16 A 7400 Oberwart, Austria Tel: 03352/31375 Fax: 03352/31375-16 E-mail: dr.hofer@utanet.at GERHARD OSWIRT: Graz Court Orders Business Shutdown --------------------------------------------------- The Land Court of Graz entered an order Sept. 15 shutting down the business of LLC Gerhard Oswirt taraflex (FN 169311m). Court-appointed property manager Otto Werschitz recommended the business shutdown after determining that the Debtor's continuing operations would reduce the value of the estate. The property manager can be reached at: Otto Werschitz Neutorgasse 47/1 8010 Graz, Austria Tel: 0316/820620-0 Fax: 0316/820620-4 E-mail: office@go-masseverwaltung.at Headquartered in Graz - Strassgang, Austria, the Debtor declared bankruptcy on Sept. 12 (Bankr. Case No. 40 S 43/06f). IVBA STEINMETZ: Property Manager Names Representative ----------------------------------------------------- Mag. Herbert Scaffler was appointed representative of Dr. Sieglinde Schubert, court-appointed property manager of LLC IVBA Steinmetz (FN 194537i) on Sept. 15. The property manager and his representative can be reached at: Dr. Sieglinde Schubert c/o Mag. Herbert Schaffler Lerchenfelderstrasse 39 1070 Vienna, Austria Tel: 368 49 50 Fax: 368 49 50-50 E-mail: sieglindeschubert@aon.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 30, 2003 (Bankr. Case No. 2 S 539/03g). M.G.R. LLC: Property Manager Declares Insufficient Assets --------------------------------------------------------- Mag. Stefan Jahns, the court-appointed property manager for LLC M.G.R. (FN 205488p), declared Sept. 15 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 25 (Bankr. Case No. 3 S 119/06d). The property manager and his representative can be reached at: Mag. Stefan Jahns c/o Mag. Michael Neuhauser Esslinggasse 9 1010 Vienna, Austria Tel: 536 50-0 Fax: 536 50-14 E-mail: officewien@aaa-law.at RADULOVIC OBREN: Vienna Court Orders Business Shutdown ------------------------------------------------------ The Trade Court of Vienna entered an order Sept. 14 shutting down the business of KEG Radulovic Obren Tanzcafe (FN 257211b). Court-appointed property manager Guenther Hoedl 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. Guenther Hoedl Schulerstrasse 18 1010 Vienna, Austria Tel: 513 16 55 E-mail: Hoedl@anwaltsteam.at The property manager's representative can be reached at: Dr. Felix Stortecky Dr.-Karl-Lueger-Place 2 1010 Vienna, Austria Tel: 513 88 37 Fax: 514 35 40 Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 18 (Bankr. Case No. 2 S 132/06h). ROBINSON KEG: Vienna Court Orders Business Closure -------------------------------------------------- The Trade Court of Vienna entered an order Sept. 15 closing the business of KEG Robinson (FN 226513h). Court-appointed property manager Guenther Hoedl recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna, Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 14 (Bankr. Case No. 28 S 44/06h). W.M.P. LLC: Wiener Neustadt Court Orders Closing of Business ------------------------------------------------------------ The Land Court of Wiener Neustadt entered an order Sept. 15 closing the business of LLC W.M.P. (FN 261468m). Court- appointed property manager Viktor Igali-Igalffy recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Viktor Igali-Igalffy Bruehlerstrasse 63 2340 Moedling, Austria Tel: 02236/45240 Fax: 02236/45240-22 E-mail: vii@aon.at Headquartered in Laxenburg, Austria, the Debtor declared bankruptcy on July 28 (Bankr. Case No. 10 S 66/06v). WAGNER HARALD: Vienna Court Orders Business Shutdown ---------------------------------------------------- The Trade Court of Vienna entered an order Sept. 15 shutting down the business of KEG Wagner Harald (FN 254467t). Court-appointed property manager Walter Engler recommended the business shutdown after he announced that the property of the bankrupt is insufficient to cover creditors' claims. The property manager can be reached at: Dr. Walter Engler Wollzeile 18/14 1010 Vienna, Austria Tel: 512 56 96 Fax: 513 99 15 E-mail: dr.engler@aon.at ============= B E L G I U M ============= CHIQUITA BRANDS: E.coli Concerns Cue S&P's B Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. The ratings remain on CreditWatch with negative implications where they were placed on Sept. 26, 2006, after the company's announcement that third-quarter operating performance was expected to be significantly affected by continued weak banana prices in European and trading markets, excess fruit supply, and lower sales/higher costs in its Fresh Express business because of recent industry health concerns related to E.-coli-tainted spinach. Total debt outstanding at the company was about US$990 million as of Sept. 30, 2006. "The downgrade follows Chiquita's recent third-quarter earnings release and reflects continued weak operating performance and significantly higher than expected leverage," said Standard & Poor's credit analyst Alison Sullivan. For the twelve months ended Sept. 30, 2006, adjusted EBITDA declined by 45% as compared to the prior-year period. This included over a 75% decline in adjusted EBITDA for the third quarter alone: -- Third-quarter operating performance was weaker than expected because of intense pricing pressure in Europe; and, -- unusually hot weather in northern Europe, which reduced consumer demand for bananas, depressed prices, and contributed to substantial price weakness in trading markets, where Chiquita incurred substantial losses on the sale of temporary excess supply from Latin America. Additionally, Fresh Express experienced lower sales and higher costs related to fresh spinach health concerns in the U.S. beginning in mid-September, although there have been no confirmed cases of consumer illness linked by the FDA to Fresh Express products. Chiquita is also faced with ongoing challenging conditions in Europe after the tariff change effective Jan. 2006, that has increased competition, leading to lower pricing, and higher net tariff costs. As a result, credit measures have weakened further. Lease adjusted total debt to EBITDA increased to about 6.5x for the 12 months ended Sept. 30, 2006 from about 4x at Dec. 31, 2006, and we believe leverage could increase further over the near term, given challenging operating conditions. In addition, the company is seeking an amendment of its credit facility to preclude any violation of its covenants that otherwise would occur upon the expiration of the existing waiver and to provide additional flexibility in future periods. If Chiquita receives an amendment to its credit facility and operating performance does not deteriorate significantly in the interim, Standard & Poor's will affirm the 'B' corporate credit rating, remove all ratings from credit watch and assign a negative outlook. UNITED BISCUITS: Moody's Withdraws Low-B Ratings on LBO ------------------------------------------------------- Moody's Investors Service withdrew the B1 corporate family rating assigned to United Biscuits Finance plc with a stable outlook. Moody's withdrew this rating at the request of the company. This follows the recent announcement of a secondary LBO by private equity partners Blackstone and PAI for around GBP1.6 billion, which is expected to be completed in December 2006. Withdrawn ratings include: * B1 corporate family rating of United Biscuits Finance plc * Ba3 rating of the senior secured credit facilities A and B and the revolving credit facility borrowed at Regentrealm Limited; and * B2 rating of "first loss" term loan C borrowed at United Biscuits (UK) Limited. United Biscuits Finance Ltd. is a leading manufacturer and marketer of biscuits in the United Kingdom, and the second largest manufacturer of biscuits in France, the Netherlands and Belgium. In the twelve months to April 22, 2006, the company reported revenues and EBITDA of around GBP1.29 billion and GBP212 million, respectively. =========== F R A N C E =========== AIRBUS SAS: Looks to Cut 80% of Suppliers in Restructuring Move --------------------------------------------------------------- Airbus S.A.S. will reduce 80% of its suppliers as part of a critical restructuring program, company spokeswoman Marcella Muratore was quoted by The Wall Street Journal as saying. The spokeswoman did not identify the 2,500 suppliers that will be affected or the timetable for the cuts, WSJ relates. Airbus' owner, European Aeronautic Defence & Space Co., last month disclosed of up to EUR2 billion in annual cost-savings measure over the next four years. The announcement came amidst Airbus's two-year production delays of its A380 jets. EADS co-CEO Louis Gallois, who replaced Christian Streiff last month, has said the cost cuts are needed to allow for the launch of another new plane -- the long-range A350, WSJ relates. FedEx Cancels Airbus A380 Order Meanwhile, FedEx Corp. has cancelled its order for 10 A380s valued at US$2.3 billion due to the related delays, Daniel Michaels, Corey Dade and J. Lynn Lunsford write for WSJ. "The airplane was delayed not once, but twice, with a level of uncertainty that simply was unacceptable to us, given the steps that we have taken to build our network out," Mr. Smith told the paper. According to the report, FedEx is replacing its Airbus orders with 15 Boeing 777 freighters and options for 15 more, in a deal valued at US$3.5 billion at list prices. FedEx Chairman, President & CEO Frederick W. Smith told WSJ that Airbus's production issues threatened FedEx's international expansion in light of its new Asia-Pacific hub slated to open in Guangzhou, China, in December 2008. Headquartered in Toulouse, France, Airbus S.A.S. -- http://www.airbus.com/en-- is a leading aircraft manufacturer in Europe with around 55,000 people employed at sixteen sites in Germany, France, Spain and the United Kingdom. ALCATEL SA: Inks EUR16-Mln Info Program with Fiji Government ------------------------------------------------------------ The Fiji government has selected Alcatel S.A. as sole provider of an advanced information and communications solution for an e-government program. This program, which started on Oct. 2, will increase the Fiji administration's efficiency and enable better policy outcomes as well as improve services delivery to the general public and greater interaction with citizens. The contract is valued at EUR16 million. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company. As the sole communication solution provider, Alcatel together with National Computer Systems of Singapore, and Fiji Government Implementation Agency Information Technology and Computing Services will provide turnkey services to the Fiji government, including consulting, program design, implementation, management and maintenance as well as training. Upon the completion of the project in 2008, Fijian ministries, businesses, and citizens will be encouraged to directly access the information and services online and participate in the governance process. The project also includes a private IP voice and data communication solution, as well as IT platforms, including security and network management. "The objective of the Fiji e-government program, at the broadest level, is to improve social productivity, economic growth, employment creation and quality of life for our citizens. The project is not only visionary, but also comprehensive and tailored to answer the needs of Fiji today," said Ratu Jone Kubuabola, Fiji's Minister for Finance and National Planning. "We will fully leverage Alcatel's strong expertise in e- government projects and in integration services worldwide to help Fiji reach their objectives in terms of social and economic development and growth of the country, thus enabling all to benefit from the innovative e-services that will be delivered," said Gerard Dega, President of Alcatel Shanghai Bell. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: S&P Keeps BB Rating on CreditWatch Negative ------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. Alcatel and Lucent are in the final stages of their merger process. To date, all approvals have been received from the shareholders and regulators -- except that from the Committee on Foreign Investments in the U.S. Both companies expect the merger to be completed by the end of the calendar year. Upon completion, Standard & Poor's will lower its long-term corporate credit rating on Alcatel (to be renamed Alcatel Lucent) to 'BB-', with a positive outlook. At the same time, it will withdraw its corporate credit ratings on Lucent. "The anticipated 'BB-' rating on Alcatel Lucent upon completion of the merger will reflect the challenges the combined company will face in integrating the two entities from an organizational and technological standpoint, carrying out a large restructuring plan, and supporting significant levels of debt," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The positive outlook would reflect the possibility of an upgrade over the next 18 months if the combined company showed clear progress in integrating the two companies and achieving targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," Mr. de Torres added. The merger has a clear logic, given continuing carrier consolidation and the convergence of fixed and mobile network technologies. The combined company will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel and Lucent expect the combined company to extract about EUR1.4 billion in annual pretax cost synergies during the first three years. At the same time, the merger will entail a number of near-term challenges, such as: -- the complexity of integrating two large organizations with different corporate cultures; integrating different technology platforms while preserving key customer relationships; -- implementing a EUR1.4 billion restructuring program leading to the reduction of the combined workforce by at least 10%; and -- continuing to support significant levels of debt and unfunded health care obligations. The combined Alcatel Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's 3G activities, Standard & Poor's estimates that Alcatel Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities outstanding at Sept. 30, 2006. At the same date, the combined company's pro forma ratio of adjusted (for operating leases and pension and health care liabilities) gross financial debt to EBITDA for the 12 months to Sept. 30, 2006, was about 4.6x. This is partially offset, however, by Alcatel Lucent's anticipated robust liquidity -- with cash and marketable securities totaling EUR7.5 billion -- and a fairly light maturity schedule. The ratings on Alcatel Lucent will be supported by: -- S&P's assessment of moderate revenue growth prospects; -- a broad portfolio of wireline and wireless systems; -- large-scale, geographically diversified operations; -- strong customer relations; -- one of the largest R&D capabilities in the industry and -- robust liquidity. The ratings will be constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. ALCATEL SA: Wins Networking Solution Deal with Kazakhtelecom ------------------------------------------------------------ Kazakhtelecom JSC has selected Alcatel S.A.'s optical networking solution for triple play service delivery, including enhanced high-speed Internet access and evolution to IPTV (Internet protocol television), across the country. The new 6,000-km optical transport network will increase the capacity and extend the reach of Kazakhtelecom's existing infrastructure, broadening its service offering to new areas. The turnkey project is scheduled for completion in the first quarter of 2007. Based on Alcatel's market-leading optical networking technologies, the new network will be the longest backbone network to be rolled-out in Central Asia, covering around 133 districts, 10 regional and 14 local departments. The deployment of Alcatel's end-to-end optical networking solution will dramatically boost Kazakhtelecom's current network capacity to cost-effectively support existing and new services, including local to international voice services and broadcasting. This will enable Kazakhtelecom to optimize bandwidth according to the multiple traffic loads and to improve the quality of the xDSL service currently offered for high-speed Internet access. "Kazakhtelecom is successfully carrying out strategic programs for the modernization of its telecommunication network, with a focus on guaranteeing high-quality and universal accessibility to services," Azamat Syrgabayev, Vice-President, and Chief Technical Officer of Kazakhtelecom, stated. "We firmly believe that Alcatel's expertise in optical networking, along with its deep understanding of customer needs, can help us broaden our service offering and reinforce key benefits such as investment protection and cost-effectiveness." "Strengthening Alcatel's long-lasting cooperation with Kazakhtelecom, this project marks a new important phase in the deployment of advanced optical transport technologies," said Romano Valussi, President of Alcatel's optical networking activities. "The functionality, flexibility and scalability offered by our solutions will help Kazakhtelecom address the accelerated broadband traffic growth, while preparing for new services yet to come, and drive greater operational efficiencies." The Alcatel optical/data convergent solution will be based on its 1626 Light Manager (LM) DWDM equipment, 1678 Metro Core Connect (MCC) and its Optical Multi-Service Node (OMSN) systems, all managed by the Alcatel 1350 management suite. Furthermore, Alcatel will be in charge of the installation, commissioning and integration of the equipment. Alcatel is the industry leader in providing purpose-built technology solutions and services integration that allows carriers to reduce the cost and complexity associated with triple play/IPTV deployments. Alcatel is involved in more than 40 major triple play deployments and more than 40 network transformation projects worldwide. About Kazakhtelecom Headquartered in Astana, Kazakhstan, JSC Kazakhtelecom -- http://www.telecom.kz/-- provides the full range of telecommunication services. The Company serves more than 1.7 million urban telephone subscribers and 377,000 rural subscribers of telephone communication services. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. CA INC: Underperformance Spurs Moody's to Affirm Ba1 Rating ----------------------------------------------------------- Moody's Investors Service affirmed CA's Ba1 senior unsecured rating and negative rating outlook following the company's announcement of fiscal second quarter financial results and fiscal 2007 revised guidance. On Nov. 2, CA announced Q2 fiscal 2007 results, including client bookings and billings, which were below the company's and Moody's expectations. In addition, the company revised FY 2007 guidance for cash flow from operations to a range of US$900 million to US$1 billion from a prior US$1.3 billion target, a nearly 30% reduction, and announced its intention to reassess further share repurchases until it deems financial performance has improved. The company's Ba1 senior unsecured rating reflects its large portfolio of mission critical software product offerings and installed base of a diverse set of creditworthy clients, which in isolation could potentially map to a high Baa rating. However, the rating also reflects: -- the company's weakened client billings and bookings performance, -- exposure to mature mainframe and Unix markets, -- uncertainties surrounding effective internal financial controls, -- unsettled fulfillment of the terms of the Deferred Prosecution Agreement, -- moderate financial leverage, and -- modest returns on net assets, which collectively drive the overall Ba1 rating. The negative outlook reflects challenges the company has to revive organic growth, implement effective financial controls, remediate material weaknesses to its financial reporting, and contain costs. Headquartered in Islandia, New York, with nearly US$3.9 billion LTM September 2006 revenues, CA, Inc. is an enterprise software vendor for enterprise management, security, and storage applications. MAAX HOLDINGS: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency revised the Corporate Family Rating for Maax Holdings Inc. to B2 from B3, as well as the rating on the company's 11.57% Senior Unsecured Discount Notes due 2013 to Caa1 from Caa3. Those debentures were assigned an LGD6 rating suggesting noteholders will experience a 99% loss in the event of default. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations of the company: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- C$50m bank fac due 2010 (Rev.) B2 B2 LGD3 49% C$130m bank fac due 2010 B2 B2 LGD3 49% US$115m bank fac due 2012 B2 B2 LGD3 49% 9.75% sr unsec sub notes due 2012 Caa1 Caa1 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 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 Brooklyn Park, Minnesota, Maax Holdings, Inc. is engaged in the manufacture of bathroom fixtures. MOSAIC CO: Refinancing Loans From New US$950-Mln Debt Offering -------------------------------------------------------------- The Mosaic Company intends to offer a total of around US$950 million aggregate principal amount of new senior notes due 2014 and 2016. Mosaic intends to use the net proceeds from the offering, together with term borrowings of around US$1.05 billion under proposed amended and restated senior secured credit facilities, to finance previously announced tender offers by two of its subsidiaries for certain of their debt securities and to refinance outstanding borrowings in the aggregate principal amount of US$344.7 million under its existing term loan B facility. The offering of the new senior notes will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The new senior notes will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in the Ukraine, France and Russia. MOSAIC CO: Moody's Rates Proposed Sr. Unsecured Debt at Ba1 ----------------------------------------------------------- Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. The ratings outlook is stable. Proceeds of the new debt will be used to refinance a portion of currently outstanding bank facilities as well as existing high coupon debt obligations. The new senior credit facilities consist of a US$250 million five-year term loan A-1 and an US$800 million seven-year term loan B. The new and existing credit facilities are guaranteed by substantially all domestic subsidiaries, certain foreign subsidiaries, and also secured by a substantial pool of assets. Mosaic is a public company, owned around 65% by Cargill Inc. and 35% by public shareholders. The new bank and public debt ratings are contingent upon the facilities closing in a timely fashion and that these facilities remain structured as represented with no material changes in terms or conditions. The two key rating factors that drive the Ba3 CFR are the company's exposure to the historically volatile crop nutrient markets combined with a material amount of legacy debt that current management has said publicly that it desires to reduce. Moody's estimates that Mosaic will be slightly more leveraged after the proposed refinancing program, (given the total size of the anticipated transaction fees and expenses). Still, Moody's views the transaction as a positive development for bondholders as it will reduce cash interest, further reduce structural impediments to business operations, extend maturities and eliminate near term required payments, and allow for the efficient repayment of bank debt as cash flows permit. As a function of applying our new LGD methodology to Mosaic's proposed capital structure a number of Moody's ratings were lowered. These changes were prompted by the material increase in the proportion of its secured bank debt (US$1.2 billion) relative to the unsecured debt of US$900 million. The proposed changes in capital structure result in modest one-notch downgrades of Mosaic's existing bank ratings, to Ba1 from Baa3, and some of its senior unsecured ratings, to B1 from Ba3. The Mosaic Company New Ratings Assigned: Projected New LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$250 mm Gtd Sr Sec Term Loan A-1 due 2011 Ba1 LGD2 27% US$800 mm Gtd Sr Sec Term Loan B due 2013 Ba1 LGD2 27% US$475 mm Gtd Global Notes due 2014 B1 LGD5 76% US$475mm Gtd Global Notes due 2016 B1 LGD5 76% Ratings Downgraded: Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$450mm Gtd Sr Sec Revolving Credit Facility due 2/18/2010 Baa3 Ba1 LGD2 27% US$50mm Gtd Sr Sec Term Loan A due 2/18/2010 Baa3 Ba1 LGD2 27% US$347mm Gtd Sr Sec Term Loan B due 2/18/2012 Baa3 Ba1 LGD2 27%* Mosaic Global Holdings Inc. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400mm 10.875% Gtd Global Notes due 6/1/2008 Ba3 B1 LGD5 76%* US$104mm 11.25% Gtd Global Notes Series B due 6/1/2011 Ba3 B1 LGD5 76%* US$300mm 11.25% Gtd Global Notes Series B due 6/1/2011 Ba3 B1 LGD5 76%* US$395mm 10.875% Gtd Global Notes due 8/1/2013 Ba3 B1 LGD5 76% * Ratings Affirmed: Mosaic Global Holdings Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150mm 6.875% Sr Unsec Debentures due 7/15/2007 B2 LGD6 94%* US$150mm 7.30% Notes due 1/15/2028 B1 B2 LGD6 94% US$19mm 9.45% Sr Debentures due 12/15/2011 B1 B2 LGD6 94% US$90mm 7.375% Debentures due 8/1/2018 B1 B2 LGD6 94% Phosphate Acquisition Partners L.P. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150mm 7% Sr Unsec Notes due 2/15/2008 Ba3 B2 LGD6 97%* * Ratings will be withdrawn upon successful refinancing The Mosaic Company, headquartered in Plymouth, Minnesota, is a leading global producer of phosphate and potash fertilizers and animal feed ingredients. Moody's believes that Mosaic generated annual revenues of about US$5.2 billion for the 12 months ending Aug. 31, 2006. MOSAIC CO: Fitch Rates Proposed Sr. Unsecured Notes at BB --------------------------------------------------------- Fitch assigned a BB rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a BB+ rating to the company's proposed senior secured term loans. These ratings affect around US$950 million of new senior notes and US$1.05 billion of new term loans. Mosaic's ratings remain on Rating Watch Evolving, where they were originally placed in July 2006 in anticipation of a potential change in capital structure associated with the credit facility's 2008 Senior Notes Refinancing Condition. The ratings will remain on Evolving Watch until the closing of Mosaic's refinancing transactions, at which time Fitch would likely affirm and remove Mosaic's BB- Issuer Default Rating from Watch. The Rating Outlook would then be Stable. Specifically, Fitch anticipates that the following ratings changes would be necessary upon the closing of the refinancing. -- affirm The Mosaic Company IDR at BB-; -- affirm The Mosaic Company senior secured revolver rating at BB+; -- affirm Mosaic Global Holdings IDR at BB-; -- affirm Mosaic Global Holdings senior unsecured notes and debentures rating at BB-; -- withdraw Mosaic Global Holdings senior secured term loan rating of BB+; -- withdraw Mosaic Global Holdings senior unsecured notes rating of BB; -- withdraw Phosphate Acquisition Partnership LP IDR of BB-; -- withdraw Phosphate Acquisition Partnership LP senior secured note rating of BB-; -- assign The Mosaic Company senior secured term loans rating at BB+; -- assign The Mosaic Company senior unsecured notes rating at BB; -- assign Mosaic Colonsay ULC IDR at BB-; and -- assign Mosaic Colonsay ULC senior secured term loan rating at BB+. The refinancing, once complete, is expected to simplify the debt structure, reduce annual cash interest expense, extend maturities, and remove the possibility of default related to the credit facility's 2008 Senior Notes Refinancing Condition. However, senior secured bank debt and total debt are expected to increase as a result of the refinancing transactions. An IDR of BB- for Mosaic and its issuing subsidiaries reflects the company's good market positions in the global potash and phosphate markets; and its improving earnings profile. However, the ratings continue to be tempered by Mosaic's high debt level and modest cash flow. Due to low free cash flow, Mosaic has not been able to reduce debt since the combination of IMC Global Inc. with Cargill's crop nutrition business in 2004. Mosaic's debt level stood at nearly US$2.6 billion at the end of August 2006. Fitch anticipates an improvement in cash flow over the following twelve months as changes to the phosphate cost structure become apparent; however, the amount of cash flow improvement is uncertain. Additionally, market dynamics are favoring an increase in domestic fertilizer demand next spring while tightening global potash supply could support higher pricing. These factors could boost Mosaic's earnings and cash flow near- term. Fitch forecasts that Mosaic's operating EBITDA-to-gross interest expense could remain just under 4.0 times (x) while total debt-to-operating EBITDA declines to 3.5x for its fiscal year 2007 with modest earnings improvement, stronger cash flow and some debt reduction. The BB+ rating on Mosaic's proposed senior secured term loans reflects the superior collateral coverage and likelihood of principal recovery in a liquidation scenario. The rating is equal to that of Mosaic's existing revolver, which would share in the same collateral package. The BB rating on Mosaic's proposed senior unsecured notes is one notch higher that the IDR of BB- due primarily to the notes' guarantees from domestic and certain foreign subsidiaries. The proposed rating also reflects the new notes senior unsecured position relative to a substantial amount of senior secured debt upon the closing of the refinancing. The IDR of BB- at Mosaic Colonsay reflects its position as a wholly owned subsidiary of Mosaic. The BB+ rating on Mosaic Colonsay's existing term loan reflects its collateral position. This term loan would share the credit facility collateral with the revolver and new term loans at parent Mosaic. The ratings could change if the final terms of the amended and restated credit agreement and new senior notes differ materially from the preliminary terms and conditions considered for the ratings. The Mosaic Company is one of the largest global suppliers of phosphate and potash fertilizers. Mosaic earned around US$655.9 million in EBITDA on US$5.2 billion in revenue LTM Aug. 31, 2006; the company had US$2.6 billion in debt at that time. ============= G E R M A N Y ============= AAREAL BANK: Fitch Lifts IDR to A- & Keeps C Individual Rating -------------------------------------------------------------- Fitch Ratings upgraded Aareal Bank AG's ratings to Issuer Default A- and Support 3 from BBB+ and 5 respectively. At the same time, the ratings for Aareal's Tier 1 capital issued through its Delaware LLC and Capital Funding GmbH vehicles are upgraded to BBB+ from BBB-. Aareal's Individual rating and Short-term rating are affirmed at C and F2. The Outlook remains Stable. Aareal's mortgage and public sector Pfandbriefe are rated AAA. "The upgrade in Aareal's Issuer Default rating reflects Aareal's significantly improved asset quality, its return to profitability and management's continued focus on simplifying structures," Sabine Bauer, Associate Director from Fitch's Financial Institutions Group disclosed. Aareal's ratings also reflect the bank's established market position in international property financing in Europe and North America. On the other hand, they factor in Aareal's tight capitalization, concentration risks in its loan portfolio and reliance on wholesale funding. The upgrade in Aareal's Support rating reflects Fitch's revised view that, as a significant issuer of Pfandbriefe, there is a moderate probability of support from the German banking authorities. The bank returned to profitability in Q405, Q106 and Q206 following normalization of its loan impairment charges. Reported LICs are based on expected losses and allocated on a proportionate basis. Fitch, however, expects Aareal to keep actual LICs close to standard risk costs following an extensive portfolio review in the last two years and based on adequate risk coverage as evidenced by the recent NPL sales and the bottoming out of domestic property in most sub-segments. Having sold EUR2.2 billion of non-performing loans since June 2005, NPLs have significantly reduced to stand at around 3% of total loans at end-September 2006. Loan impairment coverage of around 40% in respect of NPLs at end-September were slightly below peers' but overall in line with domestic standards. Fitch considers Aareal's capital adequacy to be tight, given the bank's exposure to concentration risk. Its eligible capital-to- weighted risk ratio stood at 6.29% at end June 2006, which is weaker than that of its peers. The capital injections in 2005 and 2004, totaling EUR185 million were used to absorb losses. Following extensive reviews of the bank's loan portfolio over the last two years by the German regulator, the deposit insurance fund, PwC and the bank itself, Aareal had to record additional LICs on its domestic property portfolio in 2005 and 2004, which were the main reason for the bank's losses. In April 2005, a new CEO was appointed who started a strategic review process of the business, resulting in the disposal of non-core business activities. ASH ABBRUCH: Claims Registration Ends November 15 ------------------------------------------------- Creditors of ASH Abbruch- und Schadstoffsanierungsgesellschaft mbH have until Nov. 15 to register their claims with court- appointed provisional administrator Steffen Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on 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 Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Road 28 Ludwigsburg, 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 Ludwigsburg opened bankruptcy proceedings against ASH Abbruch- und Schadstoffsanierungsgesellschaft mbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ASH Abbruch- und Schadstoffsanierungsgesellschaft mbH Attn: Andrej Horka, Manager Pfarrer-Hahn-Str. 12 70806 Kornwestheim, Germany The administrator can be contacted at: Steffen Beck Breitscheidstr. 10 70174 Stuttgart, Germany Tel: 0711/252566-0 Fax: 0711/252566-66 AUTOHAUS TANGERMUENDE: Claims Registration Ends November 16 ----------------------------------------------------------- Creditors of Autohaus Tangermuende GmbH have until Nov. 16 to register their claims with court-appointed provisional administrator Christian Struck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Stendal Hall 411 Judicial Center "Albrecht der Bar" Scharnhorststrasse 40 39576 Stendal, 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 Stendal opened bankruptcy proceedings against Autohaus Tangermuende GmbH on Sept. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Autohaus Tangermuende GmbH Arneburger Str. 53 39590 Tangermuende, Germany Attn: Henner Hohenstein, Manager Kathe-Kollwitz-Ring 16 39590 Tangermuende, Germany The administrator can be contacted at: Christian Struck Steinstrasse 29 D-19053 Schwerin, Germany Tel: 0385/555322 Fax: 0385/555324 AVE SPEDITION: Claims Registration Ends November 17 --------------------------------------------------- Creditors of AVE Spedition GmbH & Co. KG i.L. have until Nov. 17 to register their claims with court-appointed provisional administrator Peter C. Darr. Creditors and other interested parties are encouraged to attend the meeting at 1:10 p.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 Memmingen Meeting Room 103 Ground Floor Law Courts Buxacher Road 6 Memmingen, 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 Memmingen opened bankruptcy proceedings against AVE Spedition GmbH & Co. KG i.L. on Sept. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: AVE Spedition GmbH & Co. KG i.L. Attn: Josef A. Huber, Liquidator Robert-Bosch-Str. 24 86825 Bad Woerishofen, Germany The administrator can be contacted at: Peter C. Darr Candidplatz 13 81543 Munich, Germany Tel: 089/61469638 Fax: 089/61469666 BIFFAR IMMOBILIEN: Claims Registration Ends November 15 ------------------------------------------------------- Creditors of Biffar Immobilien GmbH & Co. KG have until Nov. 15 to register their claims with court-appointed provisional administrator Martin Wiedemann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. 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 Landau in der Pfalz Room 231 Marienring 13 76829 Landau in der Pfalz, 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 Landau in der Pfalz opened bankruptcy proceedings against Biffar Immobilien GmbH & Co. KG on Sept. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Biffar Immobilien GmbH & Co. KG Attn: Albrecht Johannes Biffar Seewiesen 67480 Edenkoben, Germany The administrator can be contacted at: Martin Wiedemann Kanzlei feb Rechtsanwalte O 3, 11+12 68161 Mannheim, Germany Tel: 0621/16680 DK GEBAUDESERVICE: Claims Registration Ends November 15 ------------------------------------------------------- Creditors of DK Gebaudeservice GmbH have until Nov. 15 to register their claims with court-appointed provisional administrator Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Neumuenster Area B0.31 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 DK Gebaudeservice GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: DK Gebaudeservice GmbH Attn: Detlef Kluschke, Manager Heidbleken 27 a 24306 Ploen, Germany The administrator can be contacted at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg, Germany HAUSSERVICE DIROLL: Claims Registration Ends November 15 -------------------------------------------------------- Creditors of Hausservice Diroll GmbH have until Nov. 15 to register their claims with court-appointed provisional administrator Mathias Cohrs. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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 Hausservice Diroll GmbH on Sept. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hausservice Diroll GmbH Attn: Gabriele Diroll, Manager Kurt-A.-Koerber-Chaussee 41 B 21033 Hamburg, Germany The administrator can be contacted at: Mathias Cohrs Kreuzweg 2 20099 Hamburg, Germany JANSEN WOMAN: Claims Registration Ends November 15 -------------------------------------------------- Creditors of Jansen Woman Textil GmbH have until Nov. 15 to register their claims with court-appointed provisional administrator Peter Henz. Creditors and other interested parties are encouraged to attend the meeting at 9:15 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 Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Jansen Woman Textil GmbH on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Jansen Woman Textil GmbH Attn: Hans-Juergen Janson, Manager Brockhager Str. 276 33334 Guetersloh, Germany The administrator can be contacted at: Peter Henz Rietberger Str. 28 33378 Rheda-Wiedenbrueck, Germany MARTIN OETKEN: Claims Registration Ends November 16 --------------------------------------------------- Creditors of Martin Oetken GmbH & Co. KG have until Nov. 16 to register their claims with court-appointed provisional administrator Uwe Kuhmann. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 30 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Oldenburg Meeting Room 2nd Floor Elizabeth Route 6 26135 Oldenburg, 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 Oldenburg opened bankruptcy proceedings against Martin Oetken GmbH & Co. KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Martin Oetken GmbH & Co. KG Stubbenweg 36-40 26125 Oldenburg, Germany Attn: Heiner Oetken, Manager Triftweg 48 26125 Oldenburg, Germany Klaus Oetken, Manager Lindenstrasse 67 26123 Oldenburg, Germany The administrator can be contacted at: Uwe Kuhmann Schuesselkorb 3 28195 Bremen, Germany Tel: 0421/330610 Fax: 0421/3306110 Web: http://www.kuhmann-insolvenzverwaltung.de/ E-mail: k.renken@kuhmann-insolvenzverwaltung.de MEDAX DESIGN: Claims Registration Ends November 17 -------------------------------------------------- Creditors of Medax Design International GmbH have until Nov. 17 to register their claims with court-appointed provisional administrator Ygglev Stintzing. Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Flensburg Hall A 220 Flensburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Flensburg opened bankruptcy proceedings against Medax Design International GmbH on Sept. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Medax Design International GmbH Attn: Frank Bodinek, Manager Marienhoelzungsweg 1 24939 Flensburg, Germany The administrator can be contacted at: Ygglev Stintzing Rathausstrasse 1 24937 Flensburg, Germany NRG ENERGY: S&P Affirms B+ Rating on Hedging Arrangements --------------------------------------------------------- Standard & Poor's Rating Services affirmed its 'B+' corporate credit on NRG Energy Inc. The outlook is stable. Princeton, N.J.-based NRG is an owner and operator of power generating facilities, thermal production and resource recovery facilities, and various international independent power producers. The rating affirmation follows the company's announced plan to issue US$1.1 billion of additional unsecured debt, a 30% addition to the outstanding US$3.6 billion of unsecured debt. The proceeds of the planned US$1.1 billion unsecured debt issuance, together with around US$250 million of cash on hand, will be paid to counterparties on existing hedges to reset those hedges to current market prices. The resetting of the hedges to today's market prices, together with the upsizing of credit facilities, will cancel the company's currently substantial collateral requirements and create capacity for new, longer-term hedges under the company's second lien pledged to counterparties. "Although the reset will add significant debt, the new hedges that we expect to simultaneously be executed with the debt issuance will result in greater stability -- and possible strengthening -- of cash flows through 2010," said Standard & Poor's credit analyst David Bodek. The stable outlook reflects Standard & Poor's view that NRG's near-term credit quality should benefit from the stability provided by additional hedging arrangements and a commitment to increased levels of secured debt reduction. PROSIEBENSAT.1 AG: Italy's Mediaset S.p.A. Eyes 55% Stake --------------------------------------------------------- The Board of Directors of Mediaset S.p.A. has decided to launch a bid for a majority stake in broadcaster ProsiebenSat.1 AG. In a statement, Mediaset, owned by former Italian Prime Minister Silvio Berlusconi, said it would "present a non-binding indication of interest." According to Italian news agency ANSA, Mediaset was mulling a bid for 50.5% holdings in ProsiebenSat from German Media Partners, which owns 88% of the broadcaster. Mediaset retained the services of Morgan Stanley as adviser for the stake acquisition, ANSA said citing newspaper Il Messaggero. If Mediaset succeeds in acquiring the stake, Il Messaggero relates, it must also launch an offer for the remaining shares. Mediaset will have to shed EUR5 billion to acquire ProsiebenSat, the daily estimates. Mediaset, however, has to best possible rivals Societe Television Francaise 1, NBC Universal, Antena 3, Apax, Permira and Blackstone. About Mediaset Headquartered in Milan, Italy, Mediaset S.p.A. -- http://www.mediaset.it/-- controls all aspects of the television business, from signal broadcasting and in-house television production to acquiring film and drama rights and collecting advertising. About ProsiebenSat.1 Headquartered in Munich, Germany, ProsiebenSat.1 Media AG -- http://en.ProsiebenSat1.com/-- broadcasts and produces television programs through four German language television channels as well as a range of ancillary activities. It was formed in 2000 with the merger of Germany's leading broadcasters ProSieben Media AG and Sat.1. It is the largest and most successful television corporation in Germany with four stations -- Sat.1, ProSieben, kabel eins and N24. * * * ProsiebenSat.1 Media AG carries Ba1 senior unsecured and corporate family ratings from Moody's Investors Service. Moody's said the outlook is stable. TENAX ENERGIE: Creditors' Meeting Slated for November 16 -------------------------------------------------------- The court-appointed provisional administrator for Tenax Energie GmbH, Edgar Groenda, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Nov. 16. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Court House (New Building) Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 9:15 a.m. on Dec. 14, at the same venue. Creditors have until Nov. 21 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings against Tenax Energie GmbH on Aug. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tenax Energie GmbH Attn: Aleksandrs Naumovs, Manager Kleine Johannisstrasse 28 28199 Bremen, Germany The administrator can be reached at: Edgar Groenda Domshof 18-20 28195 Bremen, Germany Tel: 0421/3686-0 Fax: 0421/3686-100 Web: http://www.schubra.de/ E-mail: InsOBremen@schubra.de VOLKSWAGEN AG: MAN Contemplates on Buying VW Stake for EUR2 Bln --------------------------------------------------------------- MAN AG is contemplating on buying up to a 10% stake in Volkswagen AG for EUR2 billion to be able to get more leverage in a planned three-way alliance with Scania AB and VW's truck businesses, AFX News Ltd. cites Focus magazine as its source. According to the report, MAN's CEO Hakam Samuelsson had talked with VW's CEO Bernd Pischetsrieder regarding the stake purchase, adding that the company's banks had signaled support for such a move. Investor AB Hikes Scania Stake Meanwhile, Investor AB, Scania's second-largest shareholder, increased its voting stake in Scania to block a hostile-takeover attempt by MAN. Investor bought a further 820,000 Class A shares in Scania and sold 490,893 Class B shares. Class A shares have 10 times the voting power of B shares. After the transaction, Investor's holding in Scania amounts to just over 22 million Class A shares, which is 20.01% of the voting rights and 11% of the share capital. On Sept. 30, Investor's holding in Scania amounted to 19.3% of the votes and 10.8% of the capital, it said. "We have increased our stake in Scania to mark our continued belief in the company's strong prospects and our commitment to find the best industrial solution for Scania, in the interest of all its shareholders, in the context of the discussions around potential combinations," commented Investor CEO Boerje Ekholm. Investor is an investment vehicle of Sweden's Wallenberg family and has so far rejected MAN's takeover bid, which values Scania at around EUR10.3 billion. "I don't believe [the increase in the stake] has any significant influence on our offer," MAN spokesman Wieland Schmitz told WSJ. Volkswagen spokeswoman Christine Ritz told The Wall Street Journal that VW is maintaining its position and still favors an amicable agreement between MAN and Scania. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. VOLKSWAGEN AG: CEO Bernd Pischetsrieder Resigns ----------------------------------------------- Volkswagen AG's Presidium of the Supervisory Board and the Chairman of the Board of Management, Dr. Bernd Pischetsrieder, agreed on his resignation effective Dec. 31. According to The Wall Street Journal, a strain between Mr. Pischetsreider and Chairman Ferdinand Piech complicated Mr. Pischetrieder's cost-cutting efforts. The paper relates that Mr. Piech was unhappy with Mr. Pischetrieder's attempts to dismantle parts of the premium strategy that he organized when he was CEO. The Presidium of the Supervisory Board proposed to appoint Professor Dr. Martin Winterkorn as Dr. Pischetsrieder's successor effective Jan. 1, 2007. Dr. Winterkorn currently heads Volkswagen's Audi unit. The Supervisory Board will decide on this appointment at its next ordinary Board meeting on Nov. 17. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs over the next three years. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. As reported in the Troubled Company Reporter-Europe on Nov. 8, Volkswagen said it is planning to eliminate up to 2,400 jobs, or 20 percent of the workforce, in Belgium, Spain and Portugal. ============= H U N G A R Y ============= FLEXTRONICS INT'L: Fitch Downgrades Default Rating to BB+ --------------------------------------------------------- Fitch Ratings downgraded the ratings for Flextronics International Ltd.: -- Issuer Default Rating to BB+ from BBB-; -- Senior Unsecured credit facility to BB+ from BBB-; and -- Senior subordinated notes to BB from BB+; The Rating Outlook is Stable. Fitch's action affects around US$1.7 billion of total debt. The ratings downgrade reflects Fitch's expectations that Flextronics will continue to operate near historically low margin levels versus Fitch's prior expectations for material margin expansion for the core EMS business, and will experience negative free-cash flow likely through FY08 while investing heavily in expanded manufacturing capacity and working capital to support a significant expected increase in revenue. These factors are somewhat mitigated by Fitch's belief that Flextronics is at an inflection point as the company is beginning to benefit from its original design manufacturer and vertical integration strategy after several years of disappointing results which negatively impacted profitability. The ramp in ODM and vertical integration business has contributed to a turnaround in overall revenue growth and, longer-term, could drive increases in operating profitability. In addition, despite the lack of improvement in operating margin, return on invested capital, which is a primary focus of the company, has improved considerably over the past several years from 6.1% in F2Q04 to 11% in F2Q07. However, Fitch expects that upside to Flextronics' operating model over the next several quarters will be limited by high costs associated with ramping new program wins, adding significant operating and program specific risk to expectations that already include negative free cash flow. In addition, Fitch believes that the electronics manufacturing services industry in general continues to suffer from excess capacity which will likely continue to negatively impact pricing for all competitors and represents further risk to Flextronics' margins and free cash flow outlook. The Ratings and Stable Outlook reflect: -- low operating EBIT margins consistent with the EMS industry in general; -- increasing investment in vertical integration through R&D and acquisitions resulting in higher fixed costs; -- inconsistent free cash flow that has been negative for the past three quarters due to rising capital expenditures and increased working capital, the latter a function of higher revenue as well as increasing cash conversion cycle (CCC) days, a trend which has been driven by lower inventory turns as OEM customers such as Nortel require Flextronics to hold increasing levels of inventory; and -- the risk associated with ramping and integrating new program wins as well as on going program specific risk which has negatively impacted the company and others EMS providers historically. Flextronics' ratings strengths center on the company's: -- top-tier EMS industry position with leading scale and low- cost manufacturing operations; -- relatively stable operating performance with industry leading cash conversion cycle days that are, however, expected to continue to moderately increase from a low of 8 days in F3Q06 (December 2005) to a historically normal range of 16 to 18 days as Flextronics absorbs increasing inventory levels for OEM customers; -- broad end market diversification with significant exposure to more stable and non-traditional end markets such as mobile handsets and consumer electronics; and -- continued strong growth of its small but higher margin ODM business in high growth markets such as handsets, possibly enabling the ODM business to turn profitable in FY07. In addition, Fitch expects the long-term trend of OEMs increasingly outsourcing manufacturing and design services to continue across most end markets. Liquidity as of Sept. 30 was solid and consisted of: -- US$1 billion in cash and cash equivalents; -- a US$1.35 billion revolving credit facility expiring May 2010, which was undrawn and fully available; and -- an accounts receivable securitization program expiring September 2007, which is off-balance sheet and allows Flextronics to sell an interest of up to US$700 million in receivables providing a maximum of US$500 million in total liquidity, of which around US$245 million was available as of June 30, 2006. Free cash flow has been inconsistent over the past several quarters due to higher working capital associated with the significant ramp in new program wins as well as an increase in capital expenditures. Fitch believes free cash flow will remain inconsistent as Flextronics' revenue grows around 20% year-over- year for the remainder of FY07. However, Fitch expects the company will produce consistent positive free cash flow once annual revenue growth subsides to more normalized levels of 10% or less and CCC days stabilize closer to historical levels of around 16 to 18 days from the current level of 13 days as days payable outstanding decreases as well as Fitch's expectation that the company will continue to face inventory pressure from OEM customers. Total debt as of Sept. 30, 2006 was US$1.7 billion and consisted of: -- US$250 million in short-term debt including credit facilities and the current portion of capital leases; -- US$195 million in zero coupon convertible junior subordinated notes due 2009; -- US$500 million in 1% convertible subordinated notes due 2010; -- US$400 million in 6.5% senior subordinated notes due 2013; -- US$386 million in 6.25% senior subordinated notes due 2014; and -- US$9 million in other long-term debt. Flextronics recently completed the divestiture of several non- strategic business units including the sale of its software group in September 2006 which generated roughly US$600 million in cash proceeds, part of which was utilized to reduce debt by around US$70 million in F3Q07. =================== K A Z A K H S T A N =================== ASTANA-AVTOCENTRE LLP: Creditors Must File Claims by Dec. 3 ----------------------------------------------------------- LLP Astana-Avtocentre has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Astana-Avtocentre Suyunbai Str. 151 Almaty, Kazakhstan Tel: 8 (3272) 97-96-10 FAVORA LLP: Proof of Claim Deadline Slated for Dec. 3 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Favora insolvent on Sept. 15. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Favora Office 74-75 Kazybek bi Str. 50 Almaty, Kazakhstan Tel: 8 (3272) 72-12-50 8 (3272) 72-18-09 KAZATOMPROM JSC: Fitch Assigns BB+ Issuer Default Rating -------------------------------------------------------- Fitch Ratings assigned Kazakhstan-based uranium producer JSC National Atomic Company Kazatomprom an Issuer Default BB+ rating and a Short-term B rating. The Outlook is Positive. The ratings reflect Kazatomprom's world leadership position in uranium production, its strong growth profile, its sound financials as well as the potential government support implied by its 100% government ownership. The company is the fourth largest uranium producer in the world with a 10% market share. It has the second largest low-cost uranium resource base in the world. Kazatomprom is thus uniquely positioned to leverage the recent revitalization of the uranium industry on the back of the planned increase in the number of nuclear power plants worldwide. All these factors will help drive the company's strategy of uranium production expansion and of its shift to more value-added products. Kazatomprom posted a strong 33% CAGR in revenue during 2003- 2005. Fitch views that the company will be able to maintain this impressive performance on the back of solid industry fundamentals, low cost production and changes in the product mix. However, the agency acknowledges that Kazatomprom operates on a much smaller scale compared to its rated metals and mining peers. Moreover, its limited product diversification increases its exposure to uranium industry risks. Kazatomprom is moderately leveraged compared to many of its rated metals and mining peers, with total debt of KZT32.2 billion at FY05 although the bulk of it is held as term deposits. The company is restructuring its debt to lengthen the maturity profile. As a result, the share of short-term debt declined to 37.6% in 2005 from 86.3% in 2004. In Fitch's view, as a fully government-owned entity, the company enjoys an implicit government guarantee, which is reflected in its strategic importance for the country, its track record of government support as well as the composition of the board of directors. However, the current shareholding structure implies that Kazatomprom is subject to the risks associated with the Kazakh government, mostly political. Furthermore, with the uranium industry highly regulated both on a national and an international level, the company's decision- making process can be constrained by regulatory requirements such as permit grants. The Positive Outlook reflects the favorable fundamentals of the uranium industry as well as Fitch's expectations that Kazatomprom will continue its rapid expansion while maintaining its strong credit and financial profiles. MINSKOYE LLP: Akmola Region Opens Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Minskoye on Sept. 21. SKIF CJSC: Creditors Must File Claims by Dec. 3 ----------------------------------------------- CJSC Skif has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: CJSC Skif Abylai han Str. 113-66 Almaty, Kazakhstan SVETOTECHNIKA LLP: Proof of Claim Deadline Slated for Dec. 3 ------------------------------------------------------------ LLP Svetotechnika has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Svetotechnika Tabjenov Str. 32 Almaty, Kazakhstan TANDEM LLP: Claims Registration Ends Dec. 3 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region declared LLP Tandem insolvent on Dec. 22, 2005. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Tandem Kulkashyeva Str. 79 Toretam Karmakchy District Kyzylorda Region Kazakhstan TRANS UNIVERSAL: Court Begins Bankruptcy Proceedings ---------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Trans Universal Company. LLP Trans Universal Company is located at: Djylga Saryagash District South Kazakhstan Region Kazakhstan TRECK OIL: Creditors' Claims Due Dec. 3 --------------------------------------- LLP Treck Oil (RNN 302700210114) has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Treck Oil Almaty-Ekaterinburg Road Priozersk Karaganda Region Kazakhstan TULKUBAS TORG: Court Starts Bankruptcy Procedure ------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Tulkubas Trade Service Tulkubas Torg Service. LLP Tulkubas Torg Service is located at: Tax Committee on South Kazakhstan Region Shymkent South Kazakhstan Region Kazakhstan URALSK CLEAN: Creditors' Claims Due Dec. 3 ------------------------------------------ LLP Uralsk Clean House has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Uralsk Clean House Proizvodstvennaya Str. 1/1 Uralsk West Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== ALA-ARCHINSKAYA PMK: Public Auction Scheduled for Nov. 24 --------------------------------------------------------- The Chui-Bishkek-Talas Territorial Department of the State Committee on State Property will auction 51% of OJSC Ala-Archinskaya PMK's state share holding to the public at 11:00 a.m. on Nov. 24 at: The Chui-Bishkek-Talas Territorial Department of the State Committee on State Property Room 5, Floor 5 Moskovskaya Str. 172 Bishkek, Kyrgyzstan The starting price for the state share holding is set at KGS1,091,227. OJSC Ala-Archinskaya PMK is located at: Naberejnaya Street Alamudun Alamudun District Chui Region Kyrgyzstan Information on OJSC Ala-Archinskaya PMK as of Jan. 1: * main activity: building and assembly jobs on waterworks facilities * total number of shares: 110,502 * type of issued shares: simple nominal * number of shares introduced to the auction: 56,356 * area of land: 2.06 hectares * authorized capital: KGS1,578,687 * cost of assets: KGS2,139,660 * account payable: KGS2,207,758 * accounts receivable: KGS657,217 * net profit: KGS196,901 * number of workers: 60 * condition of working area: satisfactory Interested bidders have until 5:00 p.m. on Nov. 23 to deposit an amount equivalent to KGS109,123 to the settlement account of: The Chui-Bishkek-Talas Territorial Department of the State Committee on State Property of Kyrgyz Republic Leninsky ROK No. 1020002080100155/205802605 OJSC Promstroybank Leninsky Department BIK 102002 Participants may submit their bids and necessary documents to: The Chui-Bishkek-Talas Territorial Department of the State Committee on State Property Room 1, Floor 5 Moskovskaya Str. 172 720010 Bishkek, Kyrgyzstan The winner of the auction will pay 7% from the selling price of the assets. Inquiries can be addressed to (+996 312) 21-87-34, 21-87-25. BM-COMPANY LLC: Claims Registration Ends Dec. 27 ------------------------------------------------ LLC BM-Company has declared insolvency. Creditors have until Dec. 27 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 27-25-72. ================= L I T H U A N I A ================= MAZEIKIU NAFTA: Holding Confidence Vote on CEO Today ---------------------------------------------------- Shareholders of AB Mazeikiu Nafta has postponed a confidence vote on Chief Executive Officer Paul Nelson English until Nov. 9, seeking to have all directors present in the meeting, Bloomberg News reports citing company spokesman Giedrius Karsokas. Bloomberg states that four members representing OAO Yukos Oil Co. in Mazeikiu's seven-member board told shareholders on Oct. 28 that they had lost confidence on Mr. English, without revealing their reasons. Mr. English denied allegations that he is secretly negotiating with PKN Orlen S.A. managers regarding a deal to take over the Lithuanian oil refinery, and said he has no intention of resigning his duties, RIA Novosti relates. Lithuania's government and PKN Orlen decided to back Mr. English on the issue, according to published reports. Takeover Deal On May 26, Yukos and PKN Orlen signed a share sale and purchase deal wherein Poland's PKN will acquire Yukos's 53.7% stake in Mazeikiu Nafta for US$1.49 billion. At the same time, PKN Orlen will purchase the Lithuanian government's 30.66% stake in Mazeikiu for US$852 million. Under the agreement, PKN will have the right to walk away from the transaction by the end of the year if Mazeikiu's value falls significantly. PKN has suspended the deal, which was to be completed by March next year, after a fire broke out at the refinery on Oct. 12. Mazeikiu estimated damages to be between US$22.5 million and US$47.5 million (LTL62 million and LTL131 million). The company's 2006 net profit is forecasted to be reduced due to the incident by US$38 million (LTL105 million). About PKN Orlen Headquartered in Poland, PKN Orlen operates three refineries located in Plock, Trzebinia and Jedlicze. It processes mainly URAL blend crude oil, shipped from Russia via the Friendship pipeline. Alternative supplies of crude oil to Plock may be sourced via the Pomerania pipeline, which connects the fuel reloading facility on the Baltic Sea with the Plock refinery. PKN ORLEN's retail network in Poland is made of 1,326 company owned stations, 504 affiliated stations and 87 franchised stations. 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- wned 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. The Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate Yukos Oil and declared what was once Russia's biggest oil firm bankrupt on Aug. 1. The expected court ruling paves the way for the company's liquidation and auction. About Mazeikiu Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta -- http://nafta.it/en-- is an integrated downstream oil company that comprises in one complex pipeline operations, oil refining, marine terminal operations, and logistics of crude oil and refined products. * * * As reported in the TCR-Europe on Oct. 17, Fitch Ratings is keeping Mazeikiu Nafta's Issuer Default rating of 'B+' on Rating Watch Positive despite Friday's fire at its Mazeikiai refinery. MN's Short-term rating is affirmed at 'B'. The RWP reflects MN's pending ownership change as a result of Polish oil refining and marketing company Polski Koncern Naftowy ORLEN S.A.'s (rated 'BBB', Rating Watch Negative) planned acquisition of the Lithuanian company. ===================== N E T H E R L A N D S ===================== LUCENT TECHNOLOGIES: S&P Keeps B Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. Alcatel and Lucent are in the final stages of their merger process. To date, all approvals have been received from the shareholders and regulators -- except that from the Committee on Foreign Investments in the U.S. Both companies expect the merger to be completed by the end of the calendar year. Upon completion, Standard & Poor's will lower its long-term corporate credit rating on Alcatel (to be renamed Alcatel Lucent) to 'BB-', with a positive outlook. At the same time, it will withdraw its corporate credit ratings on Lucent. "The anticipated 'BB-' rating on Alcatel Lucent upon completion of the merger will reflect the challenges the combined company will face in integrating the two entities from an organizational and technological standpoint, carrying out a large restructuring plan, and supporting significant levels of debt," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The positive outlook would reflect the possibility of an upgrade over the next 18 months if the combined company showed clear progress in integrating the two companies and achieving targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," Mr. de Torres added. The merger has a clear logic, given continuing carrier consolidation and the convergence of fixed and mobile network technologies. The combined company will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel and Lucent expect the combined company to extract about EUR1.4 billion in annual pretax cost synergies during the first three years. At the same time, the merger will entail a number of near-term challenges, such as: -- the complexity of integrating two large organizations with different corporate cultures; integrating different technology platforms while preserving key customer relationships; -- implementing a EUR1.4 billion restructuring program leading to the reduction of the combined workforce by at least 10%; and -- continuing to support significant levels of debt and unfunded health care obligations. The combined Alcatel Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's 3G activities, Standard & Poor's estimates that Alcatel Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities outstanding at Sept. 30, 2006. At the same date, the combined company's pro forma ratio of adjusted (for operating leases and pension and health care liabilities) gross financial debt to EBITDA for the 12 months to Sept. 30, 2006, was about 4.6x. This is partially offset, however, by Alcatel Lucent's anticipated robust liquidity -- with cash and marketable securities totaling EUR7.5 billion -- and a fairly light maturity schedule. The ratings on Alcatel Lucent will be supported by: -- S&P's assessment of moderate revenue growth prospects; -- a broad portfolio of wireline and wireless systems; -- large-scale, geographically diversified operations; -- strong customer relations; -- one of the largest R&D capabilities in the industry; and -- robust liquidity. The ratings will be constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. VNU NV: Appoints James Kilts to Supervisory Board ------------------------------------------------- VNU Group B.V. disclosed that James M. Kilts would be appointed to VNU's Supervisory Board. Until Oct. 1, Mr. Kilts was vice chairman of The Procter & Gamble Company, where he oversaw the integration of the P&G and Gillette businesses following the largest-ever merger in the consumer products industry in 2005. Before the merger, he served as chairman, president and chief executive officer of The Gillette Company, where he engineered a successful turnaround. Before that, Mr. Kilts was president and chief executive officer of Nabisco, which was acquired by the Philip Morris Companies (now Altria Group) in 2000. Before joining Nabisco, Mr. Kilts was head of Kraft's US$27 billion worldwide food business. He began his career in 1970 with General Foods Corporation. "We are delighted to welcome Jim Kilts to our Supervisory Board, and to have an executive of his stature and experience on our team," said David L. Calhoun, chairman of the Executive Board and chief executive officer of VNU. "Jim's deep understanding of the consumer products industry will be a tremendous benefit to us as we look to better serve the growing information needs of our CPG-industry clients." VNU, through its ACNielsen and Nielsen Media Research businesses, provides marketing information, consumer research and media audience measurement to virtually all of the top consumer products manufacturers and retailers on a global basis. "As a long-time client of ACNielsen and Nielsen Media Research, I know the critical role they play and the immense value they bring to the consumer-products industry," said Mr. Kilts. "With the information needs of the CPG industry expanding exponentially, I look forward to working with VNU to develop new ways to help the industry use consumer and media information to win in today's highly competitive global marketplace. The growth opportunities for VNU are enormous." Following his departure from P&G, Mr. Kilts co-founded Centerview Partners, a New York-based financial advisory and private-equity firm. In addition to Mr. Kilts' appointment to the VNU Supervisory Board, which will become effective later this month, Centerview Partners will make an investment in VNU alongside the company's other private-equity owners - AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co., and Thomas H. Lee Partners - who acquired the company in May 2006. Details of Centerview Partners' investment were not disclosed. About Centerview Partners Centerview Partners is a recently launched financial advisory and private equity firm based in New York. Centerview Partners' advisory practice provides senior-level counsel to both domestic and international clients across a broad spectrum of industries. Centerview Partners' private-equity effort seeks to capitalize on the firm's proven senior strategic and operational expertise to create value and deliver superior returns for investors. Centerview Partners was established in 2006 by founding partners Stephen Crawford, formerly Co-President of Morgan Stanley; Blair Effron, formerly Vice Chairman of UBS; James Kilts, formerly Chairman and CEO of The Gillette Company, and Robert Pruzan, former CEO of North America for Dresdner Kleinwort Wasserstein and former President of Wasserstein Perella & Co. Headquartered in Haarlem, Netherlands, VNU N.V. -- http://www.vnu.com/-- operates publishing businesses and offers marketing and media information. The Company publishes and distributes telephone directories, children's books and periodicals, and business information periodicals. VNU also offers television and Internet usage data and advertising expenditure analysis. * * * As reported in the TCR-Europe on July 20, Moody's Investors Service downgraded the Corporate Family Rating of VNU NV to B2 from B1 and its senior unsecured debt ratings to Caa1 from B1. This concludes Moody's review of VNU's ratings, which was last continued on May 26. Rating downgraded to B2 from B1: -- Corporate Family Rating Ratings downgraded to Caa1 from B1: -- floating rate Euro MT Notes due 2012; -- 6.75% Euro MT Notes due 2012; -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT Notes due 2010; -- 5.625% GBP MT Notes due 2010/17; -- 5.5% Eurobonds due 2008; -- 6.75% Eurobonds due 2008; -- 6.625% Eurobonds due 2007; -- Euro MTN program; and -- Nielsen Media Research Inc.'s 7.6% Notes due 2009 guaranteed by VNU. In a TCR-Europe report on July 19, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its 'B' short-term corporate credit rating. All ratings have been removed from CreditWatch, where they were placed with negative implications on Oct. 12, 2005. S&P said the outlook is negative. =========== N O R W A Y =========== AKER KVAERNER: Inks NOK350 Million Process Equipment Deal --------------------------------------------------------- Aker Kvaerner signed a contract for delivery of process modules to Aker Floating Production's SMART Floating Production Storage Offloading vessels. The total contract value for Aker Kvaerner is around NOK350 million. The scope to be performed by the Aker Kvaerner unit Aker Kvaerner Process Systems will be engineering, procurement and fabrication services of separation modules, riser balcony modules and flare system. The scope is presently for the first two FPSO conversions, involving "Aker Smart 1" and "Aker Smart 2." "We are proud to be awarded this contract with Aker Floating Production where we will use our capabilities based on our core process technology. We consider this contract to be of strategic importance for increasing our participation in the prosperous FPSO market", Per Harald Kongelf, President of Aker Kvaerner Process Systems, said. The process equipment for the first FPSO will be delivered second quarter 2007, and fourth quarter 2007 for the second FPSO. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. AKER KVAERNER: Inks Reselling Agreement with Alfa Laval ------------------------------------------------------- Aker Kvaerner A.S.A. and Alfa Laval have entered a global reselling agreement for Alfa Laval's P2 range of decanter centrifuges. The equipment is designed for use in white liquor plants in pulp mills. Using a P2 decanter in the system enables waste to be reduced by up to 50% by eliminating the use of lime mud precoat. Energy use can also be cut by up to 40%. Under the agreement, Kvaerner Pulping, part of the Aker Kvaerner group, will integrate the Alfa Laval decanter centrifuges into so-called green liquor dregs dewatering applications. This is part of the portfolio of products for white liquor production used by pulp mills all over the world. "We are very pleased to be able to add the technology for precoat-free dregs dewatering to our product portfolio. The Alfa Laval P2-range has a proven, superior performance in this area of application and offers new possibilities to reduce operating costs and improve the environmental performance of white liquor plant," says Patrik L�wnertz, Vice President Recausticizing Development at Kvaerner Pulping. "By combining Alfa Laval's decanter centrifuge with Kvaerner Pulping's extensive range of plant equipment, process knowledge and project execution capabilities; the P2 decanter technology will be available to more users in a larger range of project scenarios," says Julien Gennetier, Marketing & Sales Manager for Pulp and Paper at Alfa Laval. Kvaerner Pulping's equipment for white liquor plants produces white liquor by recovering chemicals used when cooking pulp. This chemical recovery uses a process that generates minimum waste and emissions, while consuming a limited amount of energy and utilities. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. ============= R O M A N I A ============= ROMEXTERRA BANK: S&P Lifts Rating on MKB's Stake Acquisition ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Romania-based Romexterra Bank to 'BB-' from 'B'. At the same time, the long-term counterparty credit rating was removed from CreditWatch where it had been placed with positive implications on Oct. 16 following Hungary-based MKB Bank Nyrt.'s acquisition of a 55.36% majority stake in Romexterra. Furthermore, the 'B' short-term rating was affirmed. The outlook is stable. The rating action reflects the bank's new ownership structure, its strategic importance to MKB, and the benefits to be derived from MKB's -- as well as the wider group of Bayerische Landesbank -- expertise and technology in core business areas. "The stable outlook factors in Standard & Poor's expectation that Romexterra's franchise and market position will continue to improve over the medium to long term, enabling the bank to sustain business and revenue growth," said Standard & Poor's credit analyst Magar Kouyoumdjian. Future creditworthiness will depend on the success of managing growth, while meeting competitive challenges, and maintaining clean assets and adequate liquidity and capitalization. Like most of its peers, the bank is also vulnerable to unlikely, but potential, adverse changes in the economy and any consequent increase in problem loans. "Demonstrated support by MKB, both in terms of business and systems/controls, as well as funding and capital, could enhance Romexterra's creditworthiness in the medium term," added Mr. Kouyoumdjian. =========== R U S S I A =========== ACHINSKAYA FURNITURE: Bankruptcy Hearing Slated for January 15 -------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region will convene at 2:00 p.m. on Jan. 15, 2007, to hear the bankruptcy supervision procedure on LLC Achinskaya Furniture Factory. The case is docketed under Case No. A33-11453/2006. The Temporary Insolvency Manager is: V. Shmanay Post User Box 20647 660017 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Achinskaya Furniture Factory Trudovykh Rezervov Str. 3 Achinsk 662150 Krasnoyarsk Region Russia ANGARSKAYA GARMENT: Asset Sale Slated for November 28 ----------------------------------------------------- The Insolvency Manager and the Bidding Organizer for OJSC Angarskaya Garment Factory, opened a public auction for the company's properties at 3:00 p.m. on Nov. 28 at: The Insolvency Manager, the Bidding Organizer Gorkogo Str. 21 Angarsk 665813 Irkutsk Region Russia Tel./Fax: (8-3951) 52-29-79 The company has set RUR1,396,000 and RUR665,640 as starting price for the auctioned assets. To participate, bidders have until 4:00 p.m. at Nov. 27 to deposit an amount equivalent to five percent of the starting price to: OJSC Angarskaya Garment Factory Settlement Account 40702810618310100524 Baykalskiy Bank SB RF Angarskoye Branch 7690 Correspondent Account 30101810900000000607 BIK 042520607 Bidding documents must be submitted to: The Insolvency Manager Gorkogo Str. 21 Angarsk 665813 Irkutsk Region Russia Tel./Fax: (8-3951) 52-29-79 The Debtor can be reached at: OJSC Angarskaya Garment Factory Gorkogo Str. 21 Angarsk 665813 Irkutsk Region Russia BAZHENOVSKIY OJSC: Bankruptcy Hearing Slated for February 1 ----------------------------------------------------------- The Arbitration Court of Bashkortostan Republic will convene at 11:00 a.m. on Feb. 1, 2007, to hear the bankruptcy supervision procedure on OJSC Bazhenovskiy. The case is docketed under Case No. A07-15026/06-G/PAV. The Temporary Insolvency Manager is: R. Yusupov Post User Box 163 Ufa 450096 Bashkortostan Republic Russia The Debtor can be reached at: OJSC Bazhenovskiy Administrativnaya Str. 1 Bazhenovo Belebeevskiy Region 452031 Bashkortostan Republic Russia BUILDER CJSC: Court Names A. Trifonov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. A. Trifonov as Insolvency Manager for CJSC Builder. He can be reached at: A. Trifonov Post User Box 383 OPS-100 170100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-28355/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Builder Apartment 8 Kamenoostrovskiy Pr. 24 St. Petersburg Region Russia INDUSTRIAL ENGINEERING: Court Names Y. Boyko to Manage Assets ------------------------------------------------------------- The Arbitration Court of Samara Region appointed Mr. Y. Boyko as Insolvency Manager for CJSC Industrial Engineering. He can be reached at: Y. Boyko Post User Box 968 Dimitrovograd-13 433513 Ulyanovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-5019/2006-33. The Debtor can be reached at: CJSC Industrial Engineering Vokzalnaya Str. 54 Tolyatii Samara Region Russia ISKRA CJSC: Moscow Court Names S. Suvorov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Tourist Agency Iskra. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-44565/06-71-919B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Tourist Agency Iskra Gorokhovskiy Per. 8 Moscow Region Russia IVANOVO-FURNITURE: Court Names Sh. Fazailov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Ivanovo Region appointed Mr. Sh. Fazailov as Insolvency Manager for CJSC Ivanovo-Furniture (TIN 3731000971). He can be reached at: Sh. Fazailov Mira Pr. 101V 129085 Moscow Region Russia Tel: 609-66-66 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17-1260/05-14-B. The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: CJSC Ivanovo-Furniture 23rd Liniya 13 153031 Ivanovo Region Russia KALININGRADSKIY BUILDING: Court Starts Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Kaliningrad Region commenced bankruptcy supervision procedure on LLC Kaliningradskiy Building Plot. The case is docketed under Case No. A21-2862/2006. The Temporary Insolvency Manager is: E. Zinder Room 209 Dm. Donskogo Str. 7 236000 Kaliningrad Region Russia Tel: 8-4012-57-87-50 The Arbitration Court of Kaliningrad Region is located at: Rokossovskogo Str. 2 Kaliningrad Region Russia The Debtor can be reached at: LLC Kaliningradskiy Building Plot Litovskiy Val Str. 105 236016 Kaliningrad Region Russia NAZIYA CJSC: Court Names A. Trifonov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. A. Trifonov as Insolvency Manager for CJSC Peat Processing Factory Naziya. He can be reached at: A. Trifonov Post User Box 183 OPS-100 170100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-20607/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Peat Processing Factory Naziya Shkolnyj Pr. 12 Naziya Kirovskiy Region Leningrad Region Russia NORTH-WEST: Fitch Puts B+ IDR on Rating Watch Evolving ------------------------------------------------------ Fitch Ratings placed Russia-based OAO North-West Telecom's Issuer Default rating of B+ and National Long-term rating of A on Rating Watch Evolving. This follows its announcement to acquire 100% of Petersburg Transit Telecom, an alternative backbone operator in the city of St. Petersburg. NWT announced that its board agreed to proceed with an acquisition of 100% of PTT from Telecominvest for an undisclosed price. The RWE will be resolved once details, such as the transaction's price, are revealed. The deal is expected to be closed in 2007, and will have to be approved by the regulator, and AGMs of NWT and Telecominvest. According to NWT, PTT reported revenues of US$57 million and EBITDA of US$31 million in 2005 and revenues of US$35 million and EBITDA of US$18 million in H206. No debt figures were made available. Fitch understands that it will be a cash acquisition. Assuming an EBITDA multiple of 6x, in line with current market valuations for telecom companies, and little debt in the acquired entity, the price for PTT is likely to be below US$200 million. Fitch notes that this acquisition makes strategic sense for NWT as it will become the owner of the largest backbone network in the city of St. Petersburg, its largest and most affluent geographical market. At the moment NWT critically depends on PTT services to carry its traffic across the city as it lacks its own backbone infrastructure. Provided that the deal price is in the range of US$200 million, NWT's leverage as measured by net debt/ EBITDA is likely to rise to 1.9x from the current FY06 forecast of 1.5x. In Fitch's view, NWT's credit profile is strong for it's rating, and the rise in leverage could be accommodated within NWT's current IDR of B+. However, should the actual deal price -- a key determinant of Fitch's decision - turn out to be lower, an upgrade may be in prospect, while an expensive acquisition may lead to a downgrade. Nevertheless, at this stage affirmation seems to be the likely scenario. PETRO-TOBACCO: Court Names A. Trifonov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. A. Trifonov as Insolvency Manager for CJSC Petro- Tobacco. He can be reached at: A. Trifonov Post User Box 183 OPS-100 170100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-30787/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Petro-Tobacco Zastavskaya 33 15 St. Petersburg Region Russia POKACHEV-AUTO-TRANS: Bankruptcy Hearing Slated for November 17 -------------------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy Autonomous Region will convene on Nov. 17 to hear the bankruptcy supervision procedure on OJSC Pokachev-Auto-Trans. The case is docketed under Case No. A-75-5560/2006. The Temporary Insolvency Manager is: A. Khokhrin Mostovaya Str. 6 Chervishevo Tyumen Region Russia 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 Pokachev-Auto-Trans Promyshlennaya Str. 17 Pokachi Khanty-Mansiyskiy Autonomous Region-Yugra Tyumen Region Russia RUS'-INVEST OJSC: Court Names S. Suvorov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for OJSC Rus'-Invest. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-48695/06-86-1045B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Rus'-Invest Building 2 Volgogradskiy Pr. 157 Moscow Region Russia RUSFINANCE BANK: S&P Assigns BB/B Counterparty Credit Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB/B' long- and short-term counterparty credit ratings to Russia-based Rusfinance Bank. At the same time, the 'ruAA' Russia national scale rating on the bank was affirmed. The outlook is positive. The ratings on Rusfinance Bank reflect the bank's strategically important status within the Societe Genrale group, which benefits the Russian bank in terms of capital support, financial flexibility, funding, risk management, and managerial and IT support. "Positive rating factors also include a diversified loan portfolio, improving financial performance, and strengthening capitalization," said Standard & Poor's credit analyst Eugene Tarzimanov. The ratings are constrained by: -- the bank's relatively short operating history in the rapidly growing and untested retail-lending segment in Russia, -- the risky operating environment, and -- increasing competitive pressure. The positive outlook reflects the expectation of Standard & Poor's that Rusfinance Bank will be able to create a successful consumer-finance franchise in Russia, and that the ties between the bank and SocGen would remain strong. In the medium term, the ratings on Rusfinance Bank will be largely driven by the developments in its stand-alone profile, as Standard & Poor's already incorporate parental support from SocGen in the ratings. "The bank's proven ability to manage its rapid expansion while keeping asset quality under control could lead to an upgrade," added Mr. Tarzimanov. Additionally, Rusfinance Bank has the potential for improved creditworthiness if its profitability, risk management, capital, and funding are further strengthened. Negative rating actions would occur if the bank's stand-alone financial profile, capitalization, and asset quality deteriorate to a material extent, and/or its ties to SocGen weaken significantly. SEVERSTAL OAO: Prices Global Offering at US$12.50 Per Share ----------------------------------------------------------- OAO Severstal disclosed the pricing of its Global Offering of ordinary shares and Global Depositary Receipts representing interests in its ordinary shares. The Global Offering has been priced at the higher end of the announced price range at US$12.50 per share and GDR, implying a market capitalization of Severstal of approximately US$12.7 billion. Strong, high quality institutional demand was received across all regions in which the shares and GDRs were offered. A total of 85 million existing ordinary shares, including ordinary shares in the form of GDRs were allocated to international institutional investors, including to qualified institutional buyers in the United States under Rule 144A, representing approximately 9.1% of Severstal's outstanding shares (excluding the over-allotment option of up to 12.75 million GDRs) and corresponding to a total offer size of approximately US$1.06 billion. The shares are being offered by Frontdeal Ltd., an entity under the control of Severstal's controlling shareholder. The seller will use the majority of the proceeds of this Offering to subscribe (directly and through other entities under control of Severstal's controlling shareholder) for newly issued shares in the capital increase to be conducted by Severstal after the settlement of the Offering by way of open subscription for up to 85 million newly issued shares. Following the completion of the Capital Increase, and assuming the full exercise by Frontdeal and other entities under the controlling shareholder's control of their statutory pre-emption rights to subscribe for newly-issued shares, Severstal is expected to raise gross proceeds of up to approximately US$1.04 billion. Severstal intends to use the proceeds of the 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. Conditional dealings will commence on the London Stock Exchange at 8:00 a.m. on Nov. 8. Admission to the Official List of the UK Listing Authority is expected at 8:00 a.m. on Nov. 14. The GDRs will be listed on the London Stock Exchange under the symbol "SVST". The ordinary shares are already listed on the RTS and MICEX stock exchanges in Moscow, Russia. Citigroup, Deutsche Bank and UBS Investment Bank are Joint Global Coordinators and Joint Bookrunners for the Global Offering. "The success of the Offering supported by our new corporate governance arrangements demonstrates significant endorsement of Severstal among international investors and the Russian steel sector," Alexey Mordashov, CEO of Severstal's management company, said. "The Offering has given us access to capital, which we will use to enhance our opportunities for growth and value creation aiming to be a leader in the consolidating global steel industry." 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 around 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 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+. SEVERSTAL OAO: Grants Over-Allotment Option to Citigroup -------------------------------------------------------- OAO Severstal disclosed that Citigroup Global Markets Limited may overallot or effect transactions in the Global Depositary Receipts with a view to supporting the market price of the GDRs at a level higher than that which might otherwise prevail in the open market from 9:00 a.m. London time on Nov. 8 to Dec. 7. The over-allotment option is in connection with Severstal's Global Offering of 85,000,000 Ordinary Shares in the form of Ordinary Shares and Global Depositary Receipts, with one GDR representing one Share at a price of US$12.50 per GDR. Citigroup, as stabilization manager, and its agents, however, have no obligation to exercise the option. The stabilization transactions may be effected on the London Stock Exchange and any other securities market, over the counter market, stock exchange or otherwise. These transactions, if commenced, may be discontinued at any time and must end no later than Dec. 7. There are no associated instruments that are subject to stabilization. The Company has granted the Underwriters an over-allotment option, solely to cover over-allotments in the Offering, exercisable, on or before Dec. 7 which, if exercised will require the Company to issue to the Underwriters additional Shares in the form of GDRs, up to a maximum of 15% of the aggregate number of Securities being offered in the Offering (before any exercise of the Over-allotment Option) at the Offer Price of US$12.50 per GDR to cover such over-allotments (if any) and/ or to cover short positions arising from sales of GDRs effected by it during the stabilizing period. The securities to be stabilized are GDRs of the Company. Number of Shares in the Offering: 85,000,000 Number of GDRs subject to the Over-allotment Option: 12,750,000 (1 GDR represents 1 Share) The Offer Price per GDR was set at US$12.50 on Nov. 7. 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 around 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 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+. SLAVINVESTBANK: Fitch Places B- on Issuer Default Rating -------------------------------------------------------- Fitch Ratings assigned Russia-based Slavinvestbank ratings of Issuer Default B-, Short-term B, Individual D/E, Support 5 and National long-term BB+. The bank's IDR, Support and National Long-term ratings are put on Rating Watch Positive The ratings reflect SIB's small size by international standards, risks from rapid loan book growth and significant business concentrations, as well as its high reliance on related-party funding. At the same time, the ratings also acknowledge the bank's low market risk appetite and adequate liquidity profile. The relationship with the second largest bank in Kazakhstan Bank TuranAlem is also reflected in SIB's ratings. BTA provides financial guarantees on certain of SIB's liabilities, there is a common chairman of BTA's and SIB's supervisory boards, and BTA has a minority stake in SIB. The RWP reflects Fitch's view that there will be a greater probability of support being forthcoming for SIB, in case of need, after the consolidation of a 51% stake in SIB by BTA. Following the consolidation, which was announced recently and will be completed during 2007, SIB's IDR will likely be upgraded to B+. The level of SIB's IDR, following the consolidation, will depend, among other things, on the IDR and stand-alone financial strength of BTA at that time and the degree of transparency of the full shareholder structures of both banks. BTA's own IDR is driven by the moderate probability of support being made available by the Kazakhstani authorities in case of need. SIB is a small-size universal bank holding roughly 0.2% of system assets at end-H106 and operating through 16 branches in Central European part of Russia, of which 11 are located in Moscow and adjacent region. About 16% of the bank's voting shares are directly owned by BTA. The remaining 84% of shares are held by a number of formal shareholders that have passed their shares in the trust of BTA. THERMAL PROTECTION: Bankruptcy Hearing Slated for February 19 ------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic will convene at 10:00 a.m. on Feb. 19, 2007, to hear the bankruptcy supervision procedure on OJSC Thermal Protection (TIN 0268026193). The case is docketed under Case No. A07-19727/06-G-KhRM. The Temporary Insolvency Manager is: A. Dyachenko Profsoyuznaya Str. 16 Sterlitamak 453104 Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: OJSC Thermal Protection Profsoyuznaya Str. 16 Sterlitamak 453014 Bashkortostan Republic Russia TMK OAO: Raises Over US$1 Billion From London IPO ------------------------------------------------- OAO TMK has completed its initial public offering at the London Stock Exchange, RosBusinessConsulting reports citing company documents. TMK raised more than US$ billion in floating 180 million shares at US$5.40 apiece or US$21.60 per Global Depositary Receipt. With the number of bids exceeding the offer by over 19 times, major shareholder Cyprus-based TMK Steel Limited, granted a 30- day over-allotment option for 18 million shares to the global coordinators Credit Suisse, Dresdner Kleinwort and Renaissance Capital. TMK Steel also sold 2.65 million shares to the company's employees. If the option is exercised, RBC relates, TMK's free float -- including employee-held shares -- may rise to 23% of authorized capital. The shares were placed at the upper limit of the price range set on Oct. 18, when the IPO was launched. The price range is also in line with TMK's market capitalization of US$4.714 billion. TMK Steel will use the proceeds to repay a loan it took from TMK in October and acquire the minority stakes. TMK will use TMK Steel's repayment to fund a strategic investment program and current operations. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * As reported in the TCR-Europe on Oct. 31, Standard & Poor's Ratings Services kept its 'B+' long-term corporate credit rating on Russia-based steel pipe producer OAO TMK on CreditWatch with negative implications, after TMK's core shareholder, Dmitriy Pumpyanskiy, increased his stake in the company to 100% from 67%. The ratings were originally placed on CreditWatch on Sept. 4 pending clarification of the company's eventual balance sheet structure. On Sept. 11, Moody's Investors Service assigned a B1 corporate family rating to TMK and a (P)B2 senior unsecured rating to the loan participation notes issued by TMK Capital S.A., guaranteed by the operating subsidiaries of TMK. Moody's said the outlook on both ratings is positive. On Sept. 9, the TCR-Europe reported that Standard & Poor's Ratings Services assigned a 'B+' long-term corporate credit rating to OAO TMK. Standard & Poor's also assigned its 'B+' preliminary senior unsecured debt rating to TMK's proposed Eurobond, which will be issued by special-purpose vehicle TMK Capital S.A. TMK OAO: S&P Removes Ratings from CreditWatch After IPO ------------------------------------------------------- Standard & Poor's Ratings Services removed from CreditWatch and affirmed all its ratings on Russia-based steel pipe producer OAO TMK and related entities, including its 'B+' long-term corporate credit and 'ruA+' Russia national scale ratings, following the company's successful IPO. The outlook is stable. The ratings were originally placed on CreditWatch with negative implications on Sept. 4 pending clarification of the company's balance sheet structure related to shareholding changes. "The rating actions reflect our opinion that the US$1.07 billion proceeds from TMK's recent successful IPO of 23% of the company's stock, including the over-allotment option, will be largely used to repay debt raised at the level of TMK and its parent, TMK Steel Ltd., in connection with the recent shareholding changes," said Standard & Poor's credit analyst Elena Anankina. "As a result, the major risk to TMK's financial profile has been resolved." Standard & Poor's expects TMK's profitability will remain strong in 2006 and 2007, because high demand for oil and gas pipes should enable the company to pass through its costs to customers. Free operating cash flow will be limited over this period, however, due to large capital expenditures. Dividends will also rise compared with previously low levels, according to the new 20%-25% payout target. Medium-term rating upside exists and will be based in the first place on the accumulation of a track record of more predictable financial policy and governance. Standard & Poor's believes that, after the IPO, the company's transparency standards will further improve, as already evidenced by publication of bi- annual IFRS financial figures. Successful implementation of the current capital expenditure program should also yield strong free cash flow generation after 2007. Rating downside is currently limited. Large debt-financed investments or a materially deteriorating situation in the pipe industry, such as a large mismatch between steel and oil and gas cycles or increased competition, could place pressure on the outlook or rating. VNESHTORGBANK: Fitch Places BB Default Rating to Armenia Branch --------------------------------------------------------------- Fitch Ratings assigned VTB Bank (Armenia) ratings of Issuer Default BB, Short-term B, Individual D/E and Support 3. The Outlook is Stable. The bank's Issuer Default rating is at Armenia's Country Ceiling. The Issuer Default, Short-term and Support ratings reflect the moderate probability of support being forthcoming, if required, from VTBA's majority shareholder, Russia's Vneshtorgbank. In Fitch's view, VTB would have a strong propensity to support VTBA, if required, although the ability of VTBA to receive and utilize this support may be constrained by Armenian country risks, in particular transfer and convertibility risks, as reflected in the Country Ceiling. In light of VTBA's large market share, there is also a limited probability of support being forthcoming from the Armenian authorities, although in Fitch's view the authorities would be more likely to look for VTB to first support the bank, should the need arise. The Individual rating reflects VTBA's modest profitability, high loan concentration, weak loan loss reserves and increased exposure to structural risk due to maturity mismatches. The rating also takes into account the bank's significant domestic franchise, sound capitalization and adequate liquidity position. VTBA's overall competitive profile has been enhanced following a restructuring by its new shareholder with stronger emphasis on the rationalization of its low-efficiency large branch network and on diversification of the funding base. VTBA is Armenia's fourth largest bank, with 10% of the banking system's loans and retail deposits at end-H106. VTB acquired a 70% stake in March 2004. VTBA (formerly known as Armsberbank) has a long history of operations in Armenia and traces its origin to a branch of Sberbank of the USSR, established in 1923. The bank services both corporate and retail clients, supported by an extensive branch network consisting of 100 branches located all over the country. WORLD TEXTILE-1: Court Names S. Suvorov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC World Textile-1. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-50525/06-38-996B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC World Textile-1 Anokhina Akademika Str. 44 Moscow Region Russia YANUS-OIL-PRODUCT: Court Names A. Trifonov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. A. Trifonov as Insolvency Manager for CJSC Yanus- Oil-Product. He can be reached at: A. Trifonov Post User Box 183 127018 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56028360/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Yanus-Oil-Product Kamennoostrovskiy Pr. 26/28 St. Petersburg Region Russia * S&P Assigns BB Rating on Bashkortostan's RUR1-Bln Bond Issue -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' senior unsecured debt rating to the Republic of Bashkortostan's upcoming RUR1 billion (US$37 million) fixed-coupon bond issue. The bond, which will be issued in November 2006, will have six coupon payments of 4% each, and a 1,092-day maturity (matures in late 2009). The rating on the bond is the same as the issuer credit rating on Bashkortostan. The rating on Bashkortostan is constrained by: -- low revenue predictability and flexibility; -- a concentration of major taxpayers in the oil extraction and processing industries; -- dependence on federal subsidies; and -- relatively high -- although declining -- contingent liabilities. "Consistently low debt, high liquidity, and outstanding budgetary performance mitigate credit risks at this rating level," said Standard & Poor's credit analyst Felix Ejgel. Standard & Poor's Ratings Services expects that Bashkortostan's prudent financial management and gradual economic growth will help maintain strong financial indicators, despite the expected growth in personnel spending. "Increased visibility in the republic's medium-term financial plans and the maintenance of sound financial performance and infrastructure investments after federal capital grants cease, will be key factors for a potential upgrade," said Mr. Ejgel. "Downside pressures on the rating are negligible at present." ============================= S L O V A K R E P U B L I C ============================= UNIBANKA: Moody's Affirms D Financial Strength Rating --------------------------------------------- ------- Moody's Investors Service affirmed the A2/P-1 foreign currency bank deposit ratings and the D bank financial strength rating of Slovakia's UniBanka. All ratings were affirmed with a stable outlook. Following the acquisition of HVB by UniCredito, UniBanka is to be merged with HVB Slovakia. The banks are already involved in the merger process and the completion of the final merger is expected to take place in the first half of 2007. The A2/P-1 deposit ratings of UniBanka are affirmed with a stable outlook notwithstanding the planned transfer of the ownership from UniCredito Italiano SpA to Bank Austria Creditanstalt, a wholly-owned subsidiary of UniCredito, since in Moody's view the level of support from the UniCredito Group to the merged entity will remain the same. Moody's noted that the D bank financial strength rating was also affirmed reflecting the improved position that the merged entity will have within the Slovak banking market but also the higher reliance the bank will have on corporate banking given HVB Slovakia's focus on this sector, and the still modest financial fundamentals of the merged entity. Following the merger the strategy is likely to focus on improving the profitability of the corporate business and growing significantly the retail business. UniBanka and HVB Bank Slovakia announced a planned merger in April 2006 following the acquisition of HVB by UniCredito Italiano. Since the announcement, the banks have demonstrated a meaningful progress in operational integration, including the designation of the merged bank's future management. The merger will create the fourth largest bank in Slovakia with an improved franchise, especially in the corporate sector. The merged bank would have total assets of SKK130 billion (around EUR3.4 billion), 93 branches and more than 160,000 customers. Unibanka is headquartered in Bratislava, Slovakia, and as of Dec. 31, 2005, it had total assets of SKK53.7 billion (EUR1.4 billion) according to IFRS. HVB Bank Slovakia is headquartered in Bratislava, Slovakia, and as of Dec. 31, 2005 it had total assets of SKK76.5 billion (EUR2.0 billion) according to IFRS. =========== S W E D E N =========== FLEXTRONICS INT'L: Fitch Downgrades Default Rating to BB+ --------------------------------------------------------- Fitch Ratings downgraded the ratings for Flextronics International Ltd.: -- Issuer Default Rating to BB+ from BBB-; -- Senior Unsecured credit facility to BB+ from BBB-; and -- Senior subordinated notes to BB from BB+; The Rating Outlook is Stable. Fitch's action affects around US$1.7 billion of total debt. The ratings downgrade reflects Fitch's expectations that Flextronics will continue to operate near historically low margin levels versus Fitch's prior expectations for material margin expansion for the core EMS business, and will experience negative free-cash flow likely through FY08 while investing heavily in expanded manufacturing capacity and working capital to support a significant expected increase in revenue. These factors are somewhat mitigated by Fitch's belief that Flextronics is at an inflection point as the company is beginning to benefit from its original design manufacturer and vertical integration strategy after several years of disappointing results which negatively impacted profitability. The ramp in ODM and vertical integration business has contributed to a turnaround in overall revenue growth and, longer-term, could drive increases in operating profitability. In addition, despite the lack of improvement in operating margin, return on invested capital, which is a primary focus of the company, has improved considerably over the past several years from 6.1% in F2Q04 to 11% in F2Q07. However, Fitch expects that upside to Flextronics' operating model over the next several quarters will be limited by high costs associated with ramping new program wins, adding significant operating and program specific risk to expectations that already include negative free cash flow. In addition, Fitch believes that the electronics manufacturing services industry in general continues to suffer from excess capacity which will likely continue to negatively impact pricing for all competitors and represents further risk to Flextronics' margins and free cash flow outlook. The Ratings and Stable Outlook reflect: -- low operating EBIT margins consistent with the EMS industry in general; -- increasing investment in vertical integration through R&D and acquisitions resulting in higher fixed costs; -- inconsistent free cash flow that has been negative for the past three quarters due to rising capital expenditures and increased working capital, the latter a function of higher revenue as well as increasing cash conversion cycle (CCC) days, a trend which has been driven by lower inventory turns as OEM customers such as Nortel require Flextronics to hold increasing levels of inventory; and -- the risk associated with ramping and integrating new program wins as well as on going program specific risk which has negatively impacted the company and others EMS providers historically. Flextronics' ratings strengths center on the company's: -- top-tier EMS industry position with leading scale and low- cost manufacturing operations; -- relatively stable operating performance with industry leading cash conversion cycle days that are, however, expected to continue to moderately increase from a low of 8 days in F3Q06 (December 2005) to a historically normal range of 16 to 18 days as Flextronics absorbs increasing inventory levels for OEM customers; -- broad end market diversification with significant exposure to more stable and non-traditional end markets such as mobile handsets and consumer electronics; and -- continued strong growth of its small but higher margin ODM business in high growth markets such as handsets, possibly enabling the ODM business to turn profitable in FY07. In addition, Fitch expects the long-term trend of OEMs increasingly outsourcing manufacturing and design services to continue across most end markets. Liquidity as of Sept. 30 was solid and consisted of: -- US$1 billion in cash and cash equivalents; -- a US$1.35 billion revolving credit facility expiring May 2010, which was undrawn and fully available; and -- an accounts receivable securitization program expiring September 2007, which is off-balance sheet and allows Flextronics to sell an interest of up to US$700 million in receivables providing a maximum of US$500 million in total liquidity, of which around US$245 million was available as of June 30, 2006. Free cash flow has been inconsistent over the past several quarters due to higher working capital associated with the significant ramp in new program wins as well as an increase in capital expenditures. Fitch believes free cash flow will remain inconsistent as Flextronics' revenue grows around 20% year-over- year for the remainder of FY07. However, Fitch expects the company will produce consistent positive free cash flow once annual revenue growth subsides to more normalized levels of 10% or less and CCC days stabilize closer to historical levels of around 16 to 18 days from the current level of 13 days as days payable outstanding decreases as well as Fitch's expectation that the company will continue to face inventory pressure from OEM customers. Total debt as of Sept. 30, 2006 was US$1.7 billion and consisted of: -- US$250 million in short-term debt including credit facilities and the current portion of capital leases; -- US$195 million in zero coupon convertible junior subordinated notes due 2009; -- US$500 million in 1% convertible subordinated notes due 2010; -- US$400 million in 6.5% senior subordinated notes due 2013; -- US$386 million in 6.25% senior subordinated notes due 2014; and -- US$9 million in other long-term debt. Flextronics recently completed the divestiture of several non- strategic business units including the sale of its software group in September 2006 which generated roughly US$600 million in cash proceeds, part of which was utilized to reduce debt by around US$70 million in F3Q07. ============= U K R A I N E ============= ALKOSOFT LLC: Court Names T. Tarasenko as Insolvency Manager ------------------------------------------------------------ The Economic Court of Kyiv Region appointed Mr. T. Tarasenko as Liquidator/Insolvency Manager for LLC Alkosoft (code EDRPOU 31900096). The Court commenced bankruptcy proceedings against the company after finding it insolvent on April 13. The case is docketed under Case No. 15/242-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 Alkosoft Bozhenko Str. 86 Kyiv Region Ukraine ATERA LLC: Court Names Oleksandr Chechelnitskij as Liquidator ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Oleksandr Chechelnitskij as Liquidator/Insolvency Manager for LLC Atera (code EDRPOU 32668757). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 24/618-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 Atera Yaroslavska Str. 58 Kyiv Region Ukraine BNTK LLC: Kyiv Court Begins Bankruptcy Supervision Procedure ------------------------------------------------------------ The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC BNTK (code EDRPOU 21704202) on Aug. 14. The case is docketed under Case No. 23/331-b. The Temporary Insolvency Manager is: Oleksandr Dashko Stalingradu Str. 59/174 Geroiv 04213 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 BNTK Chervonoarmijska Str. 29-b 01004 Kyiv Region Ukraine DIBROVA LLC: Court Names Sergij Soldatkin as Insolvency Manager --------------------------------------------------------------- The Economic Court of Sumi Region appointed Sergij Soldatkin as Liquidator/Insolvency Manager for LLC Dibrova (code EDRPOU 30902475). He can be reached at: Sergij Soldatkin a/b 30 40014 Sumi Region Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 28. The case is docketed under Case No. 12/87-05. The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Dibrova Sadova Str. 90 Dibrova Romenskij District 42000 Sumi Region Ukraine ENTERPRISE KAMELIYA: Court Names Valentina Prutyan as Liquidator ---------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Valentina Prutyan as Liquidator/Insolvency Manager for Enterprise Kameliya (code EDRPOU 30923840). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 14/224/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: Enterprise Kameliya Lenin Str. 8 Voznesensk 56500 Mikolaiv Region Ukraine KROIT LLC: Court Names P. Akinfiyev as Insolvency Manager --------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. P. Akinfiyev as Liquidator/Insolvency Manager for LLC KROIT (code EDRPOU 32982777). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 28. The case is docketed under Case No. 24/653-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 Kroit Patris Lumumba Str. 21/10 01103 Kyiv Region Ukraine MOSAIC CO: Refinancing Loans From New US$950-Mln Debt Offering -------------------------------------------------------------- The Mosaic Company intends to offer a total of around US$950 million aggregate principal amount of new senior notes due 2014 and 2016. Mosaic intends to use the net proceeds from the offering, together with term borrowings of around US$1.05 billion under proposed amended and restated senior secured credit facilities, to finance previously announced tender offers by two of its subsidiaries for certain of their debt securities and to refinance outstanding borrowings in the aggregate principal amount of US$344.7 million under its existing term loan B facility. The offering of the new senior notes will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The new senior notes will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in the Ukraine, France and Russia. MOSAIC CO: Moody's Rates Proposed Sr. Unsecured Debt at Ba1 ----------------------------------------------------------- Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. The ratings outlook is stable. Proceeds of the new debt will be used to refinance a portion of currently outstanding bank facilities as well as existing high coupon debt obligations. The new senior credit facilities consist of a US$250 million five-year term loan A-1 and an US$800 million seven-year term loan B. The new and existing credit facilities are guaranteed by substantially all domestic subsidiaries, certain foreign subsidiaries, and also secured by a substantial pool of assets. Mosaic is a public company, owned around 65% by Cargill Inc. and 35% by public shareholders. The new bank and public debt ratings are contingent upon the facilities closing in a timely fashion and that these facilities remain structured as represented with no material changes in terms or conditions. The two key rating factors that drive the Ba3 CFR are the company's exposure to the historically volatile crop nutrient markets combined with a material amount of legacy debt that current management has said publicly that it desires to reduce. Moody's estimates that Mosaic will be slightly more leveraged after the proposed refinancing program, (given the total size of the anticipated transaction fees and expenses). Still, Moody's views the transaction as a positive development for bondholders as it will reduce cash interest, further reduce structural impediments to business operations, extend maturities and eliminate near term required payments, and allow for the efficient repayment of bank debt as cash flows permit. As a function of applying our new LGD methodology to Mosaic's proposed capital structure a number of Moody's ratings were lowered. These changes were prompted by the material increase in the proportion of its secured bank debt (US$1.2 billion) relative to the unsecured debt of US$900 million. The proposed changes in capital structure result in modest one-notch downgrades of Mosaic's existing bank ratings, to Ba1 from Baa3, and some of its senior unsecured ratings, to B1 from Ba3. The Mosaic Company New Ratings Assigned: Projected New LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$250 mm Gtd Sr Sec Term Loan A-1 due 2011 Ba1 LGD2 27% US$800 mm Gtd Sr Sec Term Loan B due 2013 Ba1 LGD2 27% US$475 mm Gtd Global Notes due 2014 B1 LGD5 76% US$475mm Gtd Global Notes due 2016 B1 LGD5 76% Ratings Downgraded: Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$450mm Gtd Sr Sec Revolving Credit Facility due 2/18/2010 Baa3 Ba1 LGD2 27% US$50mm Gtd Sr Sec Term Loan A due 2/18/2010 Baa3 Ba1 LGD2 27% US$347mm Gtd Sr Sec Term Loan B due 2/18/2012 Baa3 Ba1 LGD2 27%* Mosaic Global Holdings Inc. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400mm 10.875% Gtd Global Notes due 6/1/2008 Ba3 B1 LGD5 76%* US$104mm 11.25% Gtd Global Notes Series B due 6/1/2011 Ba3 B1 LGD5 76%* US$300mm 11.25% Gtd Global Notes Series B due 6/1/2011 Ba3 B1 LGD5 76%* US$395mm 10.875% Gtd Global Notes due 8/1/2013 Ba3 B1 LGD5 76% * Ratings Affirmed: Mosaic Global Holdings Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150mm 6.875% Sr Unsec Debentures due 7/15/2007 B2 LGD6 94%* US$150mm 7.30% Notes due 1/15/2028 B1 B2 LGD6 94% US$19mm 9.45% Sr Debentures due 12/15/2011 B1 B2 LGD6 94% US$90mm 7.375% Debentures due 8/1/2018 B1 B2 LGD6 94% Phosphate Acquisition Partners L.P. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150mm 7% Sr Unsec Notes due 2/15/2008 Ba3 B2 LGD6 97%* * Ratings will be withdrawn upon successful refinancing The Mosaic Company, headquartered in Plymouth, Minnesota, is a leading global producer of phosphate and potash fertilizers and animal feed ingredients. Moody's believes that Mosaic generated annual revenues of about US$5.2 billion for the 12 months ending Aug. 31, 2006. MOSAIC CO: Fitch Rates Proposed Sr. Unsecured Notes at BB --------------------------------------------------------- Fitch assigned a BB rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a BB+ rating to the company's proposed senior secured term loans. These ratings affect around US$950 million of new senior notes and US$1.05 billion of new term loans. Mosaic's ratings remain on Rating Watch Evolving, where they were originally placed in July 2006 in anticipation of a potential change in capital structure associated with the credit facility's 2008 Senior Notes Refinancing Condition. The ratings will remain on Evolving Watch until the closing of Mosaic's refinancing transactions, at which time Fitch would likely affirm and remove Mosaic's BB- Issuer Default Rating from Watch. The Rating Outlook would then be Stable. Specifically, Fitch anticipates that the following ratings changes would be necessary upon the closing of the refinancing. -- affirm The Mosaic Company IDR at BB-; -- affirm The Mosaic Company senior secured revolver rating at BB+; -- affirm Mosaic Global Holdings IDR at BB-; -- affirm Mosaic Global Holdings senior unsecured notes and debentures rating at BB-; -- withdraw Mosaic Global Holdings senior secured term loan rating of BB+; -- withdraw Mosaic Global Holdings senior unsecured notes rating of BB; -- withdraw Phosphate Acquisition Partnership LP IDR of BB-; -- withdraw Phosphate Acquisition Partnership LP senior secured note rating of BB-; -- assign The Mosaic Company senior secured term loans rating at BB+; -- assign The Mosaic Company senior unsecured notes rating at BB; -- assign Mosaic Colonsay ULC IDR at BB-; and -- assign Mosaic Colonsay ULC senior secured term loan rating at BB+. The refinancing, once complete, is expected to simplify the debt structure, reduce annual cash interest expense, extend maturities, and remove the possibility of default related to the credit facility's 2008 Senior Notes Refinancing Condition. However, senior secured bank debt and total debt are expected to increase as a result of the refinancing transactions. An IDR of BB- for Mosaic and its issuing subsidiaries reflects the company's good market positions in the global potash and phosphate markets; and its improving earnings profile. However, the ratings continue to be tempered by Mosaic's high debt level and modest cash flow. Due to low free cash flow, Mosaic has not been able to reduce debt since the combination of IMC Global Inc. with Cargill's crop nutrition business in 2004. Mosaic's debt level stood at nearly US$2.6 billion at the end of August 2006. Fitch anticipates an improvement in cash flow over the following twelve months as changes to the phosphate cost structure become apparent; however, the amount of cash flow improvement is uncertain. Additionally, market dynamics are favoring an increase in domestic fertilizer demand next spring while tightening global potash supply could support higher pricing. These factors could boost Mosaic's earnings and cash flow near- term. Fitch forecasts that Mosaic's operating EBITDA-to-gross interest expense could remain just under 4.0 times (x) while total debt-to-operating EBITDA declines to 3.5x for its fiscal year 2007 with modest earnings improvement, stronger cash flow and some debt reduction. The BB+ rating on Mosaic's proposed senior secured term loans reflects the superior collateral coverage and likelihood of principal recovery in a liquidation scenario. The rating is equal to that of Mosaic's existing revolver, which would share in the same collateral package. The BB rating on Mosaic's proposed senior unsecured notes is one notch higher that the IDR of BB- due primarily to the notes' guarantees from domestic and certain foreign subsidiaries. The proposed rating also reflects the new notes senior unsecured position relative to a substantial amount of senior secured debt upon the closing of the refinancing. The IDR of BB- at Mosaic Colonsay reflects its position as a wholly owned subsidiary of Mosaic. The BB+ rating on Mosaic Colonsay's existing term loan reflects its collateral position. This term loan would share the credit facility collateral with the revolver and new term loans at parent Mosaic. The ratings could change if the final terms of the amended and restated credit agreement and new senior notes differ materially from the preliminary terms and conditions considered for the ratings. The Mosaic Company is one of the largest global suppliers of phosphate and potash fertilizers. Mosaic earned around US$655.9 million in EBITDA on US$5.2 billion in revenue LTM Aug. 31, 2006; the company had US$2.6 billion in debt at that time. SPETSBUD CJSC: Court Names Ivanov Kirilo as Insolvency Manager -------------------------------------------------------------- The Economic Court of Zaporizhya Region appointed Ivanov Kirilo as Liquidator/Insolvency Manager for CJSC Spetsbud (code EDRPOU 05513810). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 5/4/469(1). The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region Ukraine The Debtor can be reached at: CJSC Spetsbud Pivnichne shoes Str. 3-g 69006 Zaporizhya Region Ukraine TECHNOLOGICAL EQUIPMENT: Denis Matvijchuk to Liquidate Assets ------------------------------------------------------------- The Economic Court of Donetsk Region appointed Denis Matvijchuk as Liquidator/Insolvency Manager for OJSC Technological Equipment Plant (code EDRPOU 00481175). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 19. The case is docketed under Case No. 42/7 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: OJSC Technological Equipment Plant Mariupol, Engels Str. 54 87515 Donetsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== 1ST ACCEL: Taps Richard Rones to Liquidate Assets ------------------------------------------------- Richard Rones of ThorntonRones LLP was appointed Liquidator of 1ST Accel Limited on Oct. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: 1ST Accel Limited 176 Finchley Road Camden London NW3 6BT United Kingdom Tel: 0800 085 0317 A.G. WATTS: Hires Liquidators from BDO Stoy Hayward LLP ------------------------------------------------------- Mark Roach and Graham Randall of BDO Stoy Hayward LLP were appointed Joint Liquidators of A.G. Watts Transport Limited on Oct. 25 for the creditors' voluntary winding-up procedure. The company can be reached at: A.G. Watts Transport Limited Dunball Wharf Dunball Bridgwater Somerset TA6 4TE United Kingdom Tel: 01278 683 383 Fax: 01278 685 858 AKER KVAERNER: Inks NOK350 Million Process Equipment Deal --------------------------------------------------------- Aker Kvaerner signed a contract for delivery of process modules to Aker Floating Production's SMART Floating Production Storage Offloading vessels. The total contract value for Aker Kvaerner is around NOK350 million. The scope to be performed by the Aker Kvaerner unit Aker Kvaerner Process Systems will be engineering, procurement and fabrication services of separation modules, riser balcony modules and flare system. The scope is presently for the first two FPSO conversions, involving "Aker Smart 1" and "Aker Smart 2." "We are proud to be awarded this contract with Aker Floating Production where we will use our capabilities based on our core process technology. We consider this contract to be of strategic importance for increasing our participation in the prosperous FPSO market", Per Harald Kongelf, President of Aker Kvaerner Process Systems, said. The process equipment for the first FPSO will be delivered second quarter 2007, and fourth quarter 2007 for the second FPSO. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. AKER KVAERNER: Inks Reselling Agreement with Alfa Laval ------------------------------------------------------- Aker Kvaerner A.S.A. and Alfa Laval have entered a global reselling agreement for Alfa Laval's P2 range of decanter centrifuges. The equipment is designed for use in white liquor plants in pulp mills. Using a P2 decanter in the system enables waste to be reduced by up to 50% by eliminating the use of lime mud precoat. Energy use can also be cut by up to 40%. Under the agreement, Kvaerner Pulping, part of the Aker Kvaerner group, will integrate the Alfa Laval decanter centrifuges into so-called green liquor dregs dewatering applications. This is part of the portfolio of products for white liquor production used by pulp mills all over the world. "We are very pleased to be able to add the technology for precoat-free dregs dewatering to our product portfolio. The Alfa Laval P2-range has a proven, superior performance in this area of application and offers new possibilities to reduce operating costs and improve the environmental performance of white liquor plant," says Patrik L�wnertz, Vice President Recausticizing Development at Kvaerner Pulping. "By combining Alfa Laval's decanter centrifuge with Kvaerner Pulping's extensive range of plant equipment, process knowledge and project execution capabilities; the P2 decanter technology will be available to more users in a larger range of project scenarios," says Julien Gennetier, Marketing & Sales Manager for Pulp and Paper at Alfa Laval. Kvaerner Pulping's equipment for white liquor plants produces white liquor by recovering chemicals used when cooking pulp. This chemical recovery uses a process that generates minimum waste and emissions, while consuming a limited amount of energy and utilities. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. ARCADIA CORPORATION: Names Paul James Fleming Liquidator -------------------------------------------------------- Paul James Fleming of Parkin S. Booth & Co. was appointed Liquidator of Arcadia Corporation Limited on Oct. 26 for the creditors' voluntary winding-up procedure. The company can be reached at: Arcadia Corporation Limited Deeside Industrial Estate Welsh Road Deeside Clwyd CH5 2LR United Kingdom Tel: 01244 280080 ASCOT CONSTRUCTION: Bank of Scotland Taps Deloitte as Receivers --------------------------------------------------------------- Bank of Scotland appointed Toby Underwood and David Swaden of Deloitte and Touche joint administrative receivers of Ascot Construction Services Ltd. (Company Number 03493475) on Oct. 26. Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Ascot Construction Services Ltd. can be reached at: High Dalby House Dalby Pickering North Yorkshire YO1 87LP United Kingdom Tel: 01751 460 020 Fax: 01751 460 021 BOWKER ARCHITECTURAL: Names C.H.I. Moore as Administrator --------------------------------------------------------- C.H.I. Moore of K.J. Watkin & Co. was named administrator of Bowker Architectural Systems Ltd. (Company Number 4802150) on Oct. 24. The administrator can be reached at: C.H.I. Moore K.J. Watkin & Co. Emerald House 20-22 Anchor Road Aldridge Walsall West Midlands WS9 8PH United Kingdom Tel: 01922 452881 Fax: 01922 450525 E-mail: chim@kjwatkin.co.uk Bowker Architectural Systems Ltd. can be reached at: 34 High Street Aldridge Walsall West Midlands WS9 8LZ United Kingdom Tel: 01922 640 282 CA INC: Underperformance Spurs Moody's to Affirm Ba1 Rating ----------------------------------------------------------- Moody's Investors Service affirmed CA's Ba1 senior unsecured rating and negative rating outlook following the company's announcement of fiscal second quarter financial results and fiscal 2007 revised guidance. On Nov. 2, CA announced Q2 fiscal 2007 results, including client bookings and billings, which were below the company's and Moody's expectations. In addition, the company revised FY 2007 guidance for cash flow from operations to a range of US$900 million to US$1 billion from a prior US$1.3 billion target, a nearly 30% reduction, and announced its intention to reassess further share repurchases until it deems financial performance has improved. The company's Ba1 senior unsecured rating reflects its large portfolio of mission critical software product offerings and installed base of a diverse set of creditworthy clients, which in isolation could potentially map to a high Baa rating. However, the rating also reflects: -- the company's weakened client billings and bookings performance, -- exposure to mature mainframe and Unix markets, -- uncertainties surrounding effective internal financial controls, -- unsettled fulfillment of the terms of the Deferred Prosecution Agreement, -- moderate financial leverage, and -- modest returns on net assets, which collectively drive the overall Ba1 rating. The negative outlook reflects challenges the company has to revive organic growth, implement effective financial controls, remediate material weaknesses to its financial reporting, and contain costs. Headquartered in Islandia, New York, with nearly US$3.9 billion LTM September 2006 revenues, CA, Inc. is an enterprise software vendor for enterprise management, security, and storage applications. CAROLINA FURNITURE: Taps KPMG Restructuring to Administer Assets ---------------------------------------------------------------- Allan Watson Graham and Richard James Philpott of KPMG Restructuring were appointed joint administrators of The Carolina Furniture Company Ltd. (Company Number 03829961) on Oct. 26. 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. Headquartered in Leyburn, England, Carolina Furniture Company Ltd. manufactures and distributes furniture. CIRCUIT BASED: Appoints Gerald Irwin to Liquidate Assets -------------------------------------------------------- Gerald Irwin of Irwin & Company was appointed Liquidator of Circuit Based Training Limited on Oct. 31 for the creditors' voluntary winding-up procedure. Headquartered in Leicester, England, Circuit Based Training Limited -- http://www.circuitbasedtraining.co.uk/-- is a track based, DSA approved motorbike training school. The company caters specifically for Direct Access training. COMTEK NETWORK: Brings In BDO Stoy to Administer Assets ------------------------------------------------------- Martha H. Thompson and Anthony Nygate of BDO Stoy Hayward LLP were appointed joint administrators of Comtek Network Systems Ltd. (Company Number 02411779) on Oct. 26. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. Comtek Network Systems Ltd. can be reached at: 6 Weighbridge Row Cardiff Road Reading Berkshire RG1 8LX United Kingdom Tel: 0845 450 1626 Fax: 0845 450 1627 COTTAGE CRAFTS: Calls In Liquidator from Bulley Davey ----------------------------------------------------- Michael James Gregson of Bulley Davey was appointed Liquidator of Cottage Crafts Industries Limited on Oct. 25 for the creditors' voluntary winding-up proceeding. The company can be reached at: Cottage Crafts Industries Limited 69 Bridge Road Sutton Bridge Spalding Lincolnshire PE129SD United Kingdom Tel: 01406 350 203 Fax: 01406 350 002 D.B. ELECTRICAL: Appoints RSM Robson to Administer Assets --------------------------------------------------------- David Michael Riley and Simon Peter Bower of RSM Robson Rhodes LLP were appointed joint administrators of D.B. Electrical Services Ltd. (Company Number 03366254) on Oct. 27. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. D.B. Electrical Services Ltd. can be reached at: 383a Rayners Lane Pinner Middlesex HA5 5EN United Kingdom Tel: 020 8426 2220 EASTMAN KODAK: Moody's to Focus Review on KHG's Potential Sale -------------------------------------------------------------- Moody's Investors Service commented that its review for possible downgrade for the Eastman Kodak Company continues to focus on the company's potential sale of the Kodak Health Group as well as the fundamental operating performance of the company. If the sale of KHG were not pending, Moody's would expect to confirm Kodak's B1 rating with a negative outlook. The company intends to announce the outcome of the KHG strategic review by calendar year end 2006. On Oct. 31, 2006, Kodak reported third quarter 2006 results, which included a YTD 2006 6% overall revenue decline, revised 2006 digital revenue growth guidance to somewhat below 10% from July 2006 guidance of around 10%, and reaffirmed cash and digital earnings goals. The company also generated digital earnings in third quarter 2006, which by Moody's estimates included about US$60 million non-recurring Consumer Digital Group (CDG) license fee revenues. Moody's believes the company's plan to increase digital revenues remains challenged, with execution difficulties related to finding a balance between profitability and sales growth, especially in its CDG division; so far in 2006, the company has twice revised 2006 digital revenue growth guidance from an initial range of 16% to 22% established at the start of the year, to around 10% in August, to somewhat below 10% on Oct. 31. In Moody's view, the company's overall operating results for the September 2006 quarter and YTD September 2006 reflected pre-restructuring charge operating profit which was stronger than Moody's had anticipated, negatively impacted by lower KHG profits, yet supported by results in its consumer Film Products Group and CDG (excluding Q3 2006's non-recurring license fees) that exceeded Moody's expectations. The company's performance in its commercial Graphic Communications Group (GCG) was in line with Moody's expectations. Moody's notes that KHG's Q3 2006 EBIT was around the same as KHG's US$96 million Q3 2005 EBIT, excluding 2006's silver commodity price increases (2.1% of KHG's Q3 2006 gross margin) and costs incurred related to KHG's strategic review (about US$9 million). Moody's also notes that FPG, whose business is supported by a stable motion picture film business of about US$1 billion annual revenues, GCG, CDG, and a new technologies division (including investments in consumer inkjet and imaging sensor technologies) are the businesses the company expects to retain subsequent to any potential KHG sale. The review for possible downgrade continues to focus on any potential KHG sale consummation and any application of proceeds from a KHG sale toward debt reduction, the company's management of recurring restructuring costs associated with its business as it continues to transition from film to digital (including any potential KHG restructuring costs), and its stated goal of attaining at least US$350 million in digital earnings in 2006. By conditions of its secured credit facilities (US$1.2 billion term loan, US$500 million delay draw facility outstanding, as well as undrawn US$1 billion five-year revolver), the company can apply asset sale proceeds in excess of US$75 million to debt reduction, capital asset reinvestment (up to US$300 million per year as long as within 12 months of receipt of proceeds), and non-digital business cash restructuring costs (as long as paid within 12 months of the date the assets were sold). Regarding liquidity, Kodak maintains ample liquidity from its available cash balance of US$1.1 billion at Sept. 30, 2006, free cash flow (US$602 million LTM September 2006 cash flow from operating activities less capital expenditures and dividends), and its undrawn US$1 billion secured revolving credit facility. Moody's expects the company will maintain sufficient headroom under the two financial covenants of the revolver (a debt to EBITDA ratio and EBIDA to interest expense ratio) for at least the next twelve months. The company also plans to provide termination benefits for the majority of U.S. employees impacted by restructuring actions announced after Oct. 18, through most of 2007 in the form of special termination benefits payable from its over funded U.S. pension plan (about US$700 million over funded as of Dec. 31, 2005), which mitigates restructuring cash outflows that the company would otherwise make from its cash and operating cash flow into 2007. The company's restructuring cash outflows have been significant, ranging between about US$100 million and US$200 million per quarter since before Q1 2005. With YTD September 2006 debt reduction of US$244 million, Moody's believes Kodak is on track to meet its goal of US$800 million debt reduction in FY 2006. Kodak has no material debt maturities until 2008 (US$259 million) and 2010 (the first put/call date of the US$575 million convertible notes). The US$31 per share strike price of these convertible notes is higher than the company's current approximate US$25 per share equity trading price. Ratings on Review for Possible Downgrade: * Corporate Family Rating B1 * Senior Unsecured Rating B2 * Senior Secured Credit Facilities Ba3 Headquartered in Rochester, New York, the Eastman Kodak Company is a worldwide provider of imaging products and services. EXEM LIMITED: Taps UHY Hacker Young as Joint Administrators ----------------------------------------------------------- Andrew Andronikou and Peter Alan Kubik of UHY Hacker Young were appointed joint administrators of Exem Ltd. (t/a Toastabags) (Company Number 05007398) on Oct. 26. The administrators can be reached at: Andrew Andronikou and Peter Alan Kubik UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 Headquartered in Malvern, England, Exem Ltd. manufactures textiles, apparel and leather goods. FERGUSONS OF NESTON: Claims Filing Period Ends Dec. 13 ------------------------------------------------------ Creditors of Fergusons of Neston Limited have until Dec. 13 to send in their full names, their addresses and descriptions, full particulars of their debts or claims and the names and addresses of their Solicitors (if any), to appointed Liquidator Martin Henry Linton at: Leigh & Co. Brentmead House Britannia Road London N12 9RU United Kingdom FWL TECHNOLOGIES: Barclays Bank Hires PwC as Joint Receivers ------------------------------------------------------------ Barclays Bank PLC appointed Paul Copley and Ian Green of PricewaterhouseCoopers LLP joint administrative receivers of FWL Technologies Ltd. (Company Number 01805692) and FWL Technologies 400 Ltd. (Company Number 03897033) on Oct. 20. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Headquartered in Liverpool, England, FWL Technologies Ltd. and FWL Technologies 400 Ltd. provides software solutions for logistics and transport companies. GENERAL MOTORS: Selling Hybrid Cars to Chinese Market in 2008 ------------------------------------------------------------- General Motors Corp. will launch its hybrid cars in China beginning 2008, in time for the Beijing Olympics, Geoff Dyer of the Financial Times reports. GM chief executive Rick Wagoner revealed that it will work with Shanghai Automotive Industry Corp., its local partner, to provide alternative energy vehicles for the fast-growing Chinese market, FT relates. According to the report, GM would continue its investment in China despite the group's cost pressures. Mr. Wagoner said that the company is buying more parts locally to cut costs in its China operations in order to maintain a healthy profit while lowering prices, Gordon Fairclough writes for The Wall Street Journal. 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. As reported in the Troubled Company Reporter on July 27, 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, 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. GENERAL MOTORS: Declares US$0.25 Per Share Quarterly Dividend ------------------------------------------------------------- General Motors Corp. (NYSE: GM) disclosed of a fourth-quarter dividend of US$0.25 per share on GM common stock. The dividend is payable Dec. 9, 2006, to holders of record as of Nov. 17, 2006. The dividend is unchanged from the previous quarter. About the Company 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. As reported in the Troubled Company Reporter on July 27, 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, 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. GEORGE TOWERS: Brings In Liquidator from Fergusson & Co. Ltd. ------------------------------------------------------------ Malcolm Edward Fergusson of Fergusson & Co. Ltd. was appointed Liquidator of George Towers & Son Limited on Oct. 30 for the creditors' voluntary winding-up proceeding. Headquartered in Blyth, England, George Towers & Son Limited -- http://www.g-towers-son.co.uk/-- constructs bespoke houses on a design and build basis within Northumberland and Tyne and Wear. The company also undertakes contract work for local authorities, hospital trusts, industrial commercial and domestic clients, and insurance companies. HOMESTEAD WINDOWS: Creditors Confirm Liquidators' Appointment ------------------------------------------------------------- Creditors of Homestead Windows & Conservatories Limited confirmed on Oct. 27 the appointment of Mark Elijah Thomas Bowen and Nigel Price of Moore Stephens LLP as the company's Joint Liquidators. The company can be reached at: Homestead Windows & Conservatories Limited 3 The Courtyard Warkworth Banbury Oxfordshire OX172AG United Kingdom Tel: 01295 272 279 Fax: 01295 713 737 HOSKINS MANAGEMENT: Hires Administrators from Portland Business --------------------------------------------------------------- Carl Derek Faulds and James Richard Tickell of Portland Business & Financial Solutions Ltd. were appointed joint administrators of Hoskins Management Development Ltd. (Company Number 3431873) on Oct. 27. The administrators can be reached at: Carl Derek Faulds and James Richard Tickell Portland Business & Financial Solutions Ltd. 1640 Parkway Solent Business Park Whiteley Fareham Hampshire PO15 7AH United Kingdom Tel: 01489 550 440 E-mails: carl.faulds@portland-solutions.co.uk james.tickell@portland-solutions.co.uk Hoskins Management Development Ltd. can be reached at: 5 West Street Fareham Hampshire PO1 60BG United Kingdom Tel: 01329 221 018 Fax: 01329 285 147 JAROKEN LIMITED: Taps Tenon Recovery as Joint Administrators ------------------------------------------------------------ S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint administrators of Jaroken Ltd. (Company Number 1483805) on Oct. 25. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Jaroken Ltd. can be reached at: 502-503 Ipswich Road Slough Berkshire SL1 4EP United Kingdom Tel: 01753 578 729 Fax: 01753 578 730 KINGSTAR CONTRACTS: Appoints Begbies Traynor as Administrators -------------------------------------------------------------- Louise Donna Baxter and Mark Robert Fry of Begbies Traynor were appointed joint administrators of Kingstar Contracts Ltd. (Company Number 02843092) on Oct. 25. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Hitchin, England, Kingstar Contracts Ltd. is engaged in diamond drilling and sawing. MARGAUX MATRIX: Appoints Administrators from Hurst Morrison ----------------------------------------------------------- Robert C. Keyes and Gareth W. Roberts of Hurst Morrison Thomson CR LLP were appointed joint administrators of Margaux Matrix Ltd. (Company Number 4363142) on Oct. 26. The administrators can be reached at: Robert C. Keyes and Gareth W. Roberts Hurst Morrison Thomson Corporate Recovery LLP 5 Fairmile Henley on Thames Oxfordshire RG9 2JR United Kingdom Tel: +44 (0) 1491 579866 Fax: +44 (0) 1491 573397 E-mail: hmt@hmtgroup.co.uk Margaux Matrix Ltd. can be reached at: Wharf Street Godalming Surrey GU7 1NN United Kingdom Tel: 01483 425 001 Fax: 01483 527 117 MORGAN STANLEY: Moody's Assigns D+ Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service assigned first-time ratings of Aa3 and Prime-1 to the long- and short-term deposits of Morgan Stanley Bank International Limited, respectively, a U.K. banking subsidiary of Morgan Stanley. In the same rating action, Moody's also assigned an issuer rating of Aa3, and a bank financial strength rating of D+. The outlook is stable. Moody's Aa3 and P-1 issuer and deposit ratings reflect the strategic importance the Bank has to the international businesses of Morgan Stanley. Further, the ratings reflect the high levels of support currently given to the Bank by Morgan Stanley, as well as our expectations of additional provisions of support if ever needed. The Bank is a necessary conduit used by Morgan Stanley to conduct a broad range of activities for which a bank is required, as dictated by regulatory and/or commercial concerns. An explicit guarantee for payments that come due under obligations of the Bank has not been extended by Morgan Stanley. Moody's D+ bank financial strength rating reflects the Bank's relatively moderate levels of intrinsic strength when compared to other banks on a stand-alone basis. This rating indicates a higher than average likelihood that the Bank would require assistance from its parent in order to avoid a default. Ratings assigned: Morgan Stanley Bank International Limited: -- Long-term deposit rating at Aa3; -- Short-term deposit rating at Prime-1; -- Issuer rating at Aa3; and -- Bank financial strength rating at D+. Morgan Stanley is a global securities firm, based in the New York. Its fiscal nine-month pre-tax earnings totaled US$8 billion, as of Aug. 31, 2006. Morgan Stanley Bank International Limited, based in London, reported pre-tax earnings of US$78 million (GBP GBP43 million) for the fiscal year ending Nov. 30, 2005. NORTEL NETWORKS: Global Operations Center to Create 300 Jobs ------------------------------------------------------------ Nortel Networks Limited disclosed of further details of its new Global Operations Center of Excellence in Turkey. Located on the R&D campus of Nortel's Turkish subsidiary Nortel Netas in Umraniye, Istanbul, the new Operations Center of Excellence will create around 300 jobs for graduates and experienced network support experts. The creation of the Operations Center of Excellence is part of Nortel's ongoing business transformation. By reducing over 100 global centers and creating fewer, more focused, Centers of Excellence, Nortel aims to improve the quality of its technical product support, integration and acceptance services via efficiencies of scale, organization optimizations and process improvements. "Nortel is focused on providing the very highest levels of customer support while remaining cost competitive," said Joel Hackney, senior vice president, Global Operations and Quality, Nortel. "Located in the heart of our EMEA region, the new Operations Center of Excellence in Turkey benefits from its proximity to major customers whilet drawing on a strong labor pool and improving our cost competitiveness." The Global Operations Center of Excellence will provide technical and operational support for Nortel's worldwide next-generation carrier customers deploying mobile, converged and metro Ethernet networks, including optical networks. The specific functions the Center will perform include global network technical support for customers in North America and Europe, the Middle East and Africa (EMEA), global product support, and solution integration and acceptance for EMEA. "Next year Nortel Netas, our Turkish subsidiary, will celebrate its 40th anniversary," said Tim Watkins, president Northern Europe, the Middle East and Turkey, Nortel. "Our considerable experience working in the region allows us to be confident of the benefits that the new Center of Excellence will bring. We already conduct a considerable amount of world leading R&D at Nortel Netas and expect that this ethos of excellence will be transferred to the new Center of Excellence." The first employees of Nortel's new Global Operations Center of Excellence have already commenced in-depth training on Nortel's solutions and services portfolio. With initially 300 engineers being recruited, the Global Operations Center of Excellence is expected to go into service in the first half of 2007. Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. * * * As reported in the Troubled Company Reporter on July 10, Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). DBRS said all trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd- 5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. As reported in the Troubled Company Reporter on June 20, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2 billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. S&P said the outlook is stable. PRESENTATION CASES: Brings In Mazars LLP to Administer Assets ------------------------------------------------------------- Timothy Colin Hamilton Ball and Alistair Steven Wood of Mazars LLP were appointed joint administrators of Presentation Cases (Wotton) Ltd. (Company Number 00877268) on Oct. 25. Mazars -- http://www.mazars.com/-- is an international, integrated and independent organization, specialized in audit, accounting, tax and advisory services. Presentation Cases (Wotton) Ltd. can be reached at: Mitre Pitch Wotton Under Edge Gloucestershire GL12 7JP United Kingdom Tel: 01453 842 181 Fax: 01453 521 231 R SCAIFE: Appoints Liquidators from Wilson Field Ltd. ----------------------------------------------------- Lisa Hogg and Claire Louise Foster of Wilson Field Ltd. were appointed Joint Liquidators of R Scaife Decorators Limited on Oct. 30 for the creditors' voluntary winding-up proceeding. The company can be reached at: R Scaife Decorators Limited Unit 9 Chaucer Yard Countess Road Sheffield S1 4TE United Kingdom Tel: (0114)2788335 SEA CONTAINERS: Wants To Give Up Railway Services In May 2007 ------------------------------------------------------------- Sea Containers, Ltd., will walk away from its wholly owned non- debtor subsidiary, Great North Eastern Railway Ltd., in May 2007, if it will not obtain more favorable franchise terms, The Sunday Times reports. GNER operates high-speed passenger trains between London and Scotland along the East Coast main line of Britain under a franchise agreement with the British Government since April 1996. Robert D. MacKenzie, president and chief executive officer of Sea Containers, told The Sunday Times although GNER is profitable, it cannot "cope with the GBP1.3 billion premium that it had to pay to the Treasury under the franchise agreement." What's more, GNER's performance bond nearly doubles on May 1 from GBP15.3 million to GBP28.7 million, Dominic O'Connell of The Sunday Times writes. According to Mr. O'Connell, Britain's Department for Transport has rejected suggestions it will renegotiate the franchise. GNER currently operates a fleet of 41 train sets totaling 463 cars and locomotives covering around 920 route miles and 52 stations, and in 2005 achieved 16,700,000 passenger journeys. As previously reported, Sea Containers, Ltd., and its subsidiaries, Sea Containers Services, Ltd., and Sea Containers Caribbean, Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. On Oct. 16, 2006, the Company initiated a complementary proceeding in Bermuda to facilitate the Chapter 11 Filing. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TOFU LIMITED: Names Nicholas Wood as Administrator -------------------------------------------------- Nicholas Wood of Grant Thornton U.K. LLP was named administrator of Tofu Ltd. (Company Number 03832834) on Oct. 25. 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. Tofu Ltd. can be reached at: Brook House 229 243 Shepherds Bush Road Hammersmith and Fulham London W6 7AN United Kingdom ULTIMATE HENGELSPORT: Creditors' Claims Due Nov. 27 --------------------------------------------------- Creditors of Ultimate Hengelsport U.K. Limited (formerly Ultimate Hengelsport Limited) have until Nov. 27 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator David Anthony Horner at: David Horner & Co. 11 Clifton Moor Business Village James Nicolson Link York YO30 4XG United Kingdom The company can be reached at: Ultimate Hengelsport U.K. Limited Unit 1 Parkfarm Industrial Estate Westland Road Leeds West Yorkshire LS11 5SE United Kingdom Tel: 0113 270 4945 UNITED BISCUITS: Moody's Withdraws Low-B Ratings on LBO ------------------------------------------------------- Moody's Investors Service withdrew the B1 corporate family rating assigned to United Biscuits Finance plc with a stable outlook. Moody's withdrew this rating at the request of the company. This follows the recent announcement of a secondary LBO by private equity partners Blackstone and PAI for around GBP1.6 billion, which is expected to be completed in December 2006. Withdrawn ratings include: * B1 corporate family rating of United Biscuits Finance plc * Ba3 rating of the senior secured credit facilities A and B and the revolving credit facility borrowed at Regentrealm Limited; and * B2 rating of "first loss" term loan C borrowed at United Biscuits (UK) Limited. United Biscuits Finance Ltd. is a leading manufacturer and marketer of biscuits in the United Kingdom, and the second largest manufacturer of biscuits in France, the Netherlands and Belgium. In the twelve months to April 22, 2006, the company reported revenues and EBITDA of around GBP1.29 billion and GBP212 million, respectively. VENTURE DISTRIBUTION: Creditors' Meeting Slated for November 17 --------------------------------------------------------------- Creditors of Venture Distribution Limited (Company Number 04245120) will meet at 10:30 a.m. on Nov. 17 at: Fanshawe Lofts 41 Castle Way Southampton SO14 2BW 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 Nov. 13 at: A. R. Fanshawe Joint Administrator Fanshawe Lofts 41 Castle Way Southampton Hampshire SO14 2BW United Kingdom Tel: 023 8023 3522 Fax: 023 8023 3504 E-mail: sa@fanshawe-lofts.co.uk arf@fanshawe-lofts.co.uk VERNBERRY LIMITED: Creditors' Meeting Slated for Nov. 14 -------------------------------------------------------- Creditors of Vernberry Limited (Company Number 03658381) will meet at 10:30 a.m. on Nov. 14 at: BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD 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 Nov. 13 at: M. Dunham Joint Administrative Receiver BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD United Kingdom Tel: 0161 817 3700 Fax: 0161 817 3711 E-mail: manchester@bdo.co.uk XPRESS COPY: Hires Liquidators from Lines Henry -------------------------------- -------------- Neil Henry and Michael Simister of Lines Henry were appointed Joint Liquidators of Xpress Copy & Print (Chesterfield) Limited on Oct. 25 for the creditors' voluntary winding-up proceeding. The company can be reached at: Xpress Copy & Print (Chesterfield) Limited 39 St. Marys Gate Chesterfield Derbyshire S41 7TH United Kingdom Tel: 01246 230 005 * Moody's Sees Cash Commingling Risk in EMEA ABS/RMBS Deals ----------------------------------------------------------- The risk of cash commingling poses a key consideration that needs to be analyzed in most true sale-based securitization transactions in Europe, the Middle East and Africa (EMEA) where the securitization collections are not remitted directly to the issuer's account from the outset, Moody's Investors Service says in a new Special Report. Although in most countries several practical and structural mitigants can be incorporated into a securitization to limit commingling risk, sizing mitigation for this risk can be a delicate exercise and will ultimately depend on a large number of factors. Commingling in the context of a securitization transaction generally refers to the situation where cash belonging to a special purpose vehicle (SPV) is mixed with cash belonging to a third party or is deposited in an account held in the name of the third party. "Commonly, commingling risk arises in a securitization when the originator of the transaction is retained by the SPV as servicer of the securitized assets. In such a case, payments by the underlying debtors continue to be collected by the servicer and are deposited in a collection account in the name of the servicer," explains Sophie Berthelon, a Moody's Senior Vice President and co-author of the report. As a result, securitization monies may be commingled with the originator/servicer's funds, potentially leading, in the event that the originator/servicer becomes insolvent, to either -- cash belonging to the SPV becoming unavailable to the SPV for a period of time (i.e. liquidity risk), or -- in some jurisdictions, the SPV having only an unsecured claim against this cash in the insolvency of the originator (i.e. credit risk). Moody's notes that the risk is attenuated in cases where the originator has an investment-grade rating: the probability of it becoming insolvent during the life of the transaction is therefore relatively low. "Most transactions provide that, should the originator become insolvent, letters will be sent to the debtors asking them to redirect their payments and a new servicer will be appointed. All collections paid by debtors into the correct account post-redirection will therefore not be subject to commingling risk -- a key consideration when trying to size the risk and mitigate it," says Jens Lindner, Vice President-Senior Credit Officer and report co-author. Nonetheless, sizing mitigation for commingling risk remains a delicate exercise and will ultimately depend on a large number of factors -- notably: -- the legal framework in the country in question, -- the originator's profile, -- the characteristics of the securitized assets, and -- the structural features of the transaction. The nature and magnitude of the risk, as well as the legal mitigants available, vary significantly from jurisdiction to jurisdiction. In addition to presenting an overview of the major mitigants used in the EMEA market, Moody's Special Report -- entitled "Cash Commingling Risk in EMEA ABS and RMBS Transactions: Moody's Approach" -- also discusses country-specific considerations in the key jurisdictions of England and Wales, France, Germany and Italy. * Europe's CMBS Industrial Markets Remain Strong, Moody's Says ------------------------------------------------------------- The sampled European industrial property markets remained strong in the first half of 2006 on the back of stable supply combined with a higher take-up rate, says Moody's Investors Service in the latest semi-annual update to its Red-Yellow-Green� special report. "European industrial markets sampled have had an overall green score since we began this assessment in 2003," says Moody's Analyst Nicole Lux, author of the report. "Industrial markets have been strong, especially the U.K. sampled markets, with demand outpacing supply since 2003. By mid-2006, only one yellow market remains." Moody's Red-Yellow-Green� report assesses the strength of European industrial property markets that support commercial mortgage-backed securities (CMBS), based on actual data and 12-month forecasts of market supply-and-demand movements for the first half of 2006. The objective of the analysis is to enhance transparency for investors and issuers by providing a tool for assessing the impact of supply and demand on the occupational market performance of sampled European industrial markets. The analysis includes eight European industrial regions, which include Barcelona, Birmingham, Brussels, Greater London, Leeds/Yorkshire/Humberside, Manchester, Paris Ile-de-France and Rotterdam. Each market is scored on a scale of zero (weak) to 100 (strong) depending on the degree of stress in the occupational market over a near-term horizon. These scores are described in traffic-light colors, with 0-33 identified as red, 34-66 as yellow and 67-100 as green. Between mid-2005 and mid-2006, the composite market score for the eight monitored markets declined to 74 from 75, still a strong green score. The leading market since the assessment's inception has been Manchester, being the result of a moderate supply pipeline, increasing take-up and falling vacancy rates. The strongest improver over the last year has been Brussels: its score of 52 at end-year 2005 -- representing a yellow market -- rose to 70 in the first half of 2006. Demand for industrial space has been strengthening despite sluggish economic growth in Europe. "Take-up levels increased for the seventh consecutive half-yearly period," notes Ms. Lux. "We therefore expect prime rents to be stable in these sampled European industrial markets going forward." * Upcoming Meetings, Conferences and Seminars --------------------------------------------- November 9, 2006 TURNAROUND MANAGEMENT ASSOCIATION Real Estate Update CityPlace Conference Center, Dallas, TX 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 10, 2006 CEB Creditors' Remedies & Debtors' Rights San Francisco, CA Contact: http://www.ceb.com/ 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 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Sure-Fire Strategies for Destroying Value: An Expose of Common Errors, Oversights, and Missed Opportunties in Turnaround Management, Workouts, and Restructurings Marriott Downtown, Los Angeles, CA 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, 2006 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Arena Panel Discussion with Some of the Leading Investors Red Barn Restaurant, Westport, CT Contact: 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, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround & Transaction of the Year Award Presentations Solera, Minneapolis, MN 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 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION The Brave New World of Selling Distressed Companies Mid-Day Club, Chicago, IL Contact: http://www.turnaround.org/ November 22, 2006 TURNAROUND MANAGEMENT ASSOCIATION "Inherent Jurisdiction of the Courts" Dinner Event - Special Presentation by Madam Justice Juliana Topolniski Union Bank Inn, Edmonton, AB 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 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Some Do's and Don'ts in Investing in Turnarounds University Club, Milwaukee, WI 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, 2006 TURNAROUND MANAGEMENT ASSOCIATION Restructuring Around Intellectual Property - Preserving Value When Trouble Lurks Carnelian Room, San Francisco, CA Contact: http://www.turnaround.org/ 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 1, 2006 CEB Creditors' Remedies & Debtors' Rights Garden Grove, CA Contact: http://www.ceb.com/ December 4-5, 2006 PRACTISING LAW INSTITUTE Mortgage Servicing & Default Management Washington, DC Contact: http://www.pli.edu/ December 5, 2006 EUROMONEY CONFERENCES CFO Forum Hyatt Regency, Hangzhou, China Contact: http://www.euromoneyconferences.com/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Intellectual Property - Are You Overlooking Significant Value? 5th Avenue Suites, Portland, OR Contact: http://www.turnaround.org/ 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 8, 2006 CEB Creditors' Remedies & Debtors' Rights Los Angeles / Century City, CA Contact: http://www.ceb.com/ 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 8-9, 2007 EUROMONEY Leveraged Finance Asia JW Marriott Hong Kong Contact: http://www.euromoneyplc.com/ February 21-22, 2007 EUROMONEY Euromoney Pakistan Conference Perceptions & Realities Marriott Hotel, Islamabad, Pakistan Contact: http://www.euromoneyplc.com/ February 22, 2007 EUROMONEY 2nd Annual Euromoney Japan Forex Forum Mandarin Oriental, Tokyo, Japan Contact: http://www.euromoneyplc.com/ 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 1, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - West Regency Beverly Wilshire, Los Angeles, CA Contact: http://www.abiworld.org/ March 2, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Bankruptcy Battleground West Regency Beverly Wilshire, Los Angeles, CA Contact: 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 21-22, 2007 EUROMONEY 2nd Annual Vietnam Investment Forum Melia, Hanoi, Vietnam Contact: http://www.euromoneyplc.com/ March 21-22, 2007 EUROMONEY Euromoney Indian Financial Market Congress Grand Hyatt, Mumbai, India Contact: http://www.euromoneyplc.com/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION "The Six Keys of Sustained Profitable Growth" Rodney Page, Senior Partner of Blue Springs Partners Citrus Club, Orlando, FL Contact: 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 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East JW Marriott, Washington, DC Contact: http://www.abiworld.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 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Why Prospects Become Clients" Mark Fitzgerald, President of Sales Training Institute Inc Centre Club, Tampa, FL Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, PA Contact: http://www.ali-aba.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 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton U.S. Custom House, SDNY New York, NY Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, NY Contact: http://www.abiworld.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 http://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/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, SC Contact: http://www.abiworld.org/ August 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, MD Contact: http://www.abiworld.org/ September 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, NV Contact: http://www.abiworld.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/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, DC Contact: http://www.abiworld.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/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, MI Contact: http://www.abiworld.org/ August 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, FL Contact: http://www.abiworld.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/ December 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, AZ Contact: http://www.abiworld.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 * * *