/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061110.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, November 10, 2006, Vol. 7, No. 224 Headlines A U S T R I A ALBAGHDADI OEG: Property Manager Declares Insufficient Assets GASTHOF HINDENBURG: Creditors' Meeting Slated for November 16 HUMMEL LLC: Creditors' Meeting Slated for November 22 MURAMONT LLC: Creditors' Meeting Slated for November 14 OBERSTEIRISCHE QUALITATSFLEISCH: Meeting Slated for Nov. 22 SEIDEL & PEER: Creditors' Meeting Slated for November 13 SOBOTNIK UND PANKRATZ: Creditors' Meeting Slated for November 16 VNESHTORGBANK: Moody's Puts D- FSR to Austrian Branch B E L G I U M GOODYEAR TIRE: Posts US$48 Million Net Loss in 2006 Third Qtr. GOODYEAR TIRE: Outlines New Proposal to Workers on Strike JLG INDUSTRIES: Launches Sr. Debt Offer & Consent Solicitation JLG INDUSTRIES: Moody's Cuts Rating on US$113.8-Mln Notes to B2 B U L G A R I A BALKAN AIRLINES: French Court Orders State to Pay Zeevi Claim C Y P R U S BANK OF CYPRUS: Earns EUR225,726 for First Nine Months 2006 BANK OF CYPRUS: Moody's Changes D+ FSR Outlook to Positive HELLENIC BANK: Moody's Changes D FSR Outlook to Stable C Z E C H R E P U B L I C FREESCALE SEMICONDUCTOR: Gets Requisite Consents on 6.875% Notes F R A N C E EUROTUNNEL GROUP: Creditors Mull Liquidation Over Safeguard Plan JLG INDUSTRIES: Launches Sr. Debt Offer & Consent Solicitation JLG INDUSTRIES: Moody's Cuts Rating on US$113.8-Mln Notes to B2 LAZARD LTD: Posts US$35 Million Third Quarter 2006 Net Income G E O R G I A PROCREDITBANK GEORGIA: Fitch Affirms Foreign Currency IDR at B G E R M A N Y BLUE CULT: Claims Registration Ends November 14 BUCKEL HAUSTECHNIK: Claims Registration Ends November 13 CH MODE: Claims Registration Ends November 14 ELEX ALPHA: S&P Assigns BB- Rating on EUR22-Mln Class E Notes FAB FERNMELDEANLAGENBAU: Claims Registration Ends November 14 GEMATEC COLOR: Claims Registration Ends November 15 GFD GESELLSCHAFT: Claims Registration Ends November 14 HORNBACH: Moody's Affirms Ratings on Good Operating Performance KABEL DEUTSCHLAND: Fitch Rates Exchange Notes at BB- MAX-BAU: Deadline for Claims Registration Slated November 14 PERMO VERTRIEBS: Claims Registration Ends November 13 STOELZEL BAUGESELLSCHAFT: Claims Registration Ends November 13 UNTIEDT UND SYRI: Claims Registration Ends November 15 G R E E C E BANK OF CYPRUS: Earns EUR225,726 for First Nine Months 2006 BANK OF CYPRUS: Moody's Changes D+ FSR Outlook to Positive HELLENIC BANK: Moody's Changes D FSR Outlook to Stable I R E L A N D ELAN CORP: To Issue US$500 Million Senior Notes Due 2013 I T A L Y FREESCALE SEMICONDUCTOR: Gets Requisite Consents on 6.875% Notes K A Z A K H S TA N AGRO SERVICE: Almaty Court Opens Bankruptcy Proceedings AGROZAN-2 LLP: Creditors Must File Claims by Dec. 3 ALTYN CAPITAL: Proof of Claim Deadline Slated for Dec. 8 ASTANA-TECHNOPARK OJSC: Claims Registration Ends Dec. 6 ASYL NAN: Claims Filing Period Ends Dec. 8 BAIZAKTORGGAS LLP: Jambyl Court Starts Bankruptcy Procedure BAMI DENT: Creditors' Claims Due Dec. 3 BLACK GOLD: Creditors Must File Claims by Dec. 3 JAHAN-MATAL LLP: Proof of Claim Deadline Slated for Dec. 8 RISOPERERABATYVAYUSHYI ZAVOD: Creditors' Claims Due Dec. 3 SAMAL KURYLYS: Claims Registration Ends Dec. 3 SHYNGYZ-HAN LLP: Claims Filing Period Ends Dec. 3 SPEKTRUM-FLEX LLP: Claims Registration Ends Dec. 3 STARS CLUB: Creditors Must File Claims by Dec. 8 TRANSSFERA: Proof of Claim Deadline Slated for Dec. 6 URSERVICE CONSULT: Creditors' Claims Due Dec. 8 K Y R G Y Z S T A N JHOLDAS GROUP: Creditors Must File Claims by Dec. 22 NATIONAL ACADEMY: Public Auction Scheduled for Nov. 29 L U X E M B O U R G NORTEL NETWORKS: Appoints Dr. Kristina M. Johnson to Board NORTEL NETWORKS: Posts US$99 Million Net Loss in Third Quarter N E T H E R L A N D S BURNS PHILP: Rank Group Declares Offer Unconditional BURNS PHILP: S&P Cuts & Withdraws Rating on Rank Group Purchase GLOBAL POWER: Hires AlixPartners LLC as Claims & Balloting Agent KONINKLIJKE AHOLD: Walks Away From Merger Talks with Delhaize R U S S I A ABK CJSC: Bankruptcy Hearing Slated for January 22 ANANYEVSKOYE CJSC: Court Names A. Rubashanov to Manage Assets CHISTOPOLSKIY SHIP-MECHANICAL: Court Hearing Slated for Jan. 18 FIRST SIBERIAN: Court Names N. Natarov as Insolvency Manager FURNITURE FACTORY: Court Names A. Rubashanov to Manage Assets KUYBYSHEVSKIE LIQUEUR-VODKA: Court Hearing Slated for Dec. 25 LYULPANSKIY TIMBER: Court Names V. Pomazkin to Manage Assets OB'-POLYMER CJSC: Asset Sale Slated for November 21 ORGERSBANK: Fitch Places B- IDR on Rating Watch Positive PRODUCTS-7 CJSC: Court Names B. Shatrov as Insolvency Manager SIBERIAN FACTORY: Court Names S. Grudyakov as Insolvency Manager SPECIAL AUTO-TRANSPORT: Court Starts Bankruptcy Supervision UST-KATAEVSKIY OJSC: Court Names E. Babanov to Manage Assets VNESHTORGBANK: Moody's Puts D- FSR to Austrian Branch VOTALIFT-AUDIT CJSC: Court Names A. Kovalev to Manage Assets YAMAL-OIL-STROY-GAS: Bankruptcy Hearing Slated for November 14 ZAVYALOVSKAYA MINERAL: Court Names A. Generalov to Manage Assets * S&P Affirms B+ Rating on Russia's Leningrad Oblast S P A I N KONINKLIJKE AHOLD: Walks Away From Merger Talks with Delhaize T U R K E Y GENERAL NUTRITION: Faces Overtime Wage Litigation in Kansas GENERAL NUTRITION: Moody's Junks Proposed US$325-Mln Note Issue U K R A I N E AGROTORG LLC: Sumi Court Starts Bankruptcy Supervision AZHVO LLC: Ivano-Frankivsk Court Starts Bankruptcy Supervision ECOLOGICAL BUILDINGS: Court Starts Bankruptcy Supervision EUROSAIL 06-4: Fitch Gives BB Rating on GBP6.7-Mln Class E Notes EUROSAIL 2006-4NP: S&P Rates GBP6.7-Mln Class E Notes at BB GENERAL NUTRITION: Faces Overtime Wage Litigation in Kansas GENERAL NUTRITION: Moody's Junks Proposed US$325-Mln Note Issue INTERTAJP LLC: Court Names I. Yasnogor as Insolvency Manager RATE-INVEST LLC: Oleksandr Chechelnitskij to Liquidate Assets TEHSERVICE: Mikolaiv Court Starts Bankruptcy Supervision ZIM OJSC: Donetsk Court Starts Bankruptcy Supervision U N I T E D K I N G D O M 1ST RECRUITMENT: Appoints A. J. Clark to Liquidate Assets ACM SCAFFOLDING: Taps Joint Administrators from Unity Business AINSWORTH FINISHING: Taps Begbies Traynor as Administrators ALLEN DECORATORS: Nominates Liquidators from Abbott Fielding BARNETT FINANCIAL: Creditors Confirm Liquidator's Appointment BENNY DEE: Kikis Kallis Leads Liquidation Procedure C J EXECUTIVE: Names Anthony David Kent Liquidator COLLINS & AIKMAN: Court Allows Rejection of Westland Lease COLLINS & AIKMAN: Court Approves Settlement Pact with GECC DEYE LIMITED: Creditors Ratify Voluntary Liquidation DOUGLAS ESTATES: Hires David Jenner Cork to Liquidate Assets E-SOURCE EDUCATION: Hires Rothman Pantall to Administer Assets ENRON CORP: Wants Court Nod on US$25,081,204 Newpower Deal ENRON CORP: Wants US$44 Million Dynegy Settlement Approved EURO CELLULAR: D.J. Goddard Appoints UHY Hacker as Receivers EUROACT CONSTRUCTION: Brings In DTE Leonard to Administer Assets EUROPEAN ODYSSEY: Taps Peter Nottingham to Liquidate Assets EUROTUNNEL GROUP: Creditors Mull Liquidation Over Safeguard Plan FLEXIHOSE SOMERSET: Calls In Liquidator from Bishop Fleming GEMINI WINDOWS: Appoints Liquidator from Tenon Recovery GENTEK INC: To Shut Down New Jersey Plant in December 2006 HOLBROOKE SUPPLIES: Brings In Liquidator from Begbies Traynor J J BUNKER: Hires Liquidator from Rogers Evans J. A. TONGE: Appoints Parkin S. Booth as Joint Administrators KRONOS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating LAZARD LTD: Posts US$35 Million Third Quarter 2006 Net Income L-3 COMMUNICATIONS: Moody's Changes Rating Outlook to Stable LOVEKYN HOLDINGS: Names Stephen Robert Cork as Administrator M E ENGINEERING: Creditors' Meeting Slated for November 22 MSB ELECTRONICS: Names Matthew Colin Bowker Liquidator METTECH KENT: Joint Liquidators Take Over Operations NVESTA PLC: Appoints F A Simms & Partners as Administrators ODDIES LIMITED: Brings In F A Simms to Administer Assets P.A.B. ELECTRONICS: Hires BDO Stoy to Administer Assets PORTRAIT CORP: Panel Hires Peter Solomon Co. as Fin'l. Advisor POSTAL GIFTS: D. L. Platt Leads Liquidation Procedure PROCON SOFTWARE: Taps Matthew Colin Bowker as Administrator PROVENCE COMMERCIAL: Royal Bank Taps Kroll as Receivers PROVENCE HOLDINGS: Appoints Kroll to Administer Assets RANK GROUP: Declares Offer for Burns Philp Unconditional ROSCOE FABRICATORS: Hires Liquidators from Gibson Hewitt ROTARY BLADES: Appoints T. C. E. Harrison as Liquidator T TELIA: Hires Baker Tilly as Joint Administrators TEACHERQUEST LIMITED: Appoints Menzies to Administer Assets UNITED BISCUITS: Fitch Withdraws B- Rating on Lack of Update UNITEDSHIELD LIMITED: Brings In Administrator from McCabe Ford WINDSMOOR HOUSE: Taps Grant Thornton as Joint Administrators WIRED UP: Hires Peter O'Hara to Liquidate Assets * Moody's Reports Improvement in European CMBS Office Markets * Moody's Reports 1.5% European Speculative-Grade Default Rate * BOOK REVIEW: Legal Aspects of Health Care Reimbursement ********* ============= A U S T R I A ============= ALBAGHDADI OEG: Property Manager Declares Insufficient Assets ------------------------------------------------------------- Mag. Nikolaus Vogt, the court-appointed property manager for OEG Albaghdadi (FN 143493w), 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 Sept. 4 (Bankr. Case No. 2 S 135/06z). Eva Reiss represents Mag. Vogt in the bankruptcy proceedings. The property manager and his representative can be reached at: Mag. Nikolaus Vogt c/o Dr. Eva Riess Zeltgasse 3/13 1080 Vienna, Austria Tel: 402 57 01 33 Fax: 402 57 01 57 E-mail: nikolaus.vogt@riess.co.at GASTHOF HINDENBURG: Creditors' Meeting Slated for November 16 ------------------------------------------------------------- Creditors owed money by LLC Gasthof Hindenburg (FN 131992g) are encouraged to attend the creditors' meeting at 11:30 a.m. on Nov. 16 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Land Court of Salzburg Room 221 2nd Floor Salzburg, Austria Headquartered in Steinernen Meer, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 23 S 69/06a). Thomas Payer serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Thomas Payer Paris-Lodron-Str. 19 5020 Salzburg, Austria Tel: 0662-872350 Fax: 0662-871214 E-mail: office@lhl.at HUMMEL LLC: Creditors' Meeting Slated for November 22 ----------------------------------------------------- Creditors owed money by LLC Hummel (FN 39109p) are encouraged to attend the creditors' meeting at 8:30 a.m. on Nov. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Krems an der Donau Hall 2 2nd Floor Krems an der Donau, Austria Headquartered in Neukirchen/Wild, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 9 S 46/06x). Gerald Streibel serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Gerald Streibel Schwedengasse 2 3500 Krems an der Donau, Austria Tel: 02732/70280-80 Fax: 02732/70280-9 E-mail: insolvenz.krems@tpawt.com MURAMONT LLC: Creditors' Meeting Slated for November 14 ------------------------------------------------------- Creditors owed money by LLC Muramont (FN 165060k) are encouraged to attend the creditors' meeting at 10:50 a.m. on Nov. 14 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 2nd Floor Old Building St. Poelten, Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 14 S 148/06i). Susanne Binder serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Susanne Binder Riemerplatz 1 3100 St. Poelten, Austria Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-binder@aon.at OBERSTEIRISCHE QUALITATSFLEISCH: Meeting Slated for Nov. 22 ----------------------------------------------------------- Creditors owed money by LLC Obersteirische Qualitatsfleisch (FN 140422d) are encouraged to attend the creditors' meeting at 10:20 a.m. on Nov. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Leoben Hall IV 1st Floor Leoben, Austria Headquartered in Leoben, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 17 S 70/06x). Michael Kropiunig serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Michael Kropiunig Max-Tendler-Strasse 28 8700 Leoben, Austria Tel: 03842-45019 Fax: 03842-45019-30 E-mail: office@ra-kropiunig.at SEIDEL & PEER: Creditors' Meeting Slated for November 13 -------------------------------------------------------- Creditors owed money by LLC Seidel & Peer Boom Candles (FN 242817i) are encouraged to attend the creditors' meeting at 11:00 a.m. on Nov. 13 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Innsbruck Room 212 2nd Floor Maximilianstrasse 4 6020 Innsbruck, Austria Headquartered in Inzing, Austria, the Debtor declared bankruptcy on Sept. 15 (Bankr. Case No. 19 S 92/06m). Max Dengg serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Max Dengg Wilhelm-Greil-Strasse 19a 6020 Innsbruck, Austria Tel: 0512/573900 Fax: 0512/573900-6 E-mail: office@ra-max-dengg.at SOBOTNIK UND PANKRATZ: Creditors' Meeting Slated for November 16 ---------------------------------------------------------------- Creditors owed money by LLC Sobotnik und Pankratz & Co (FN 250532f) are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 16 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Wiener Neudorf, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No. 10 S 81/06z). Peter Bubits serves as the court-appointed property manager of the bankrupt estate. Andrea Prochaska represents Mag. Bubits in the bankruptcy proceedings. The property manager can be reached at: Mag. Peter Bubits c/o Mag. Andrea Prochaska Elisabethstr. 2 2340 Moedling, Austria Tel: 02236/42210 Fax: 02236/42210-25 E-mail: Kanzlei@beck-krist.at VNESHTORGBANK: Moody's Puts D- FSR to Austrian Branch ----------------------------------------------------- Moody's Investors Service assigned Baa2 long-term and Prime-2 short-term foreign currency bank deposit ratings and a D- Bank Financial Strength Rating to VTB Bank (Austria) AG (formerly known as Donau Bank). The outlook on all ratings is stable. The Baa2/P-2 deposit ratings are based on the support that Moody's expects would be forthcoming in case of need from its Moscow-based parent company, VTB (formerly Vneshtorgbank, Bank for Foreign Trade -- rated A1 for local currency debt and deposits, Baa2 for foreign currency debt and deposits, Prime-2 for short-term debt and D- for BFSR. This view is underpinned by VTB's explicit aim of reorganizing, consolidating and thereby more closely integrating its European subsidiaries, as well as VTBA's profitable positioning within the group through its niche strategy and the fact that it shares the same name and brand as its parent bank. The D- BFSR reflects the Austrian bank's relatively modest and evolving franchise, but also its satisfactory financial fundamentals. VTBA's core business focuses on structured trade finance, the structuring and syndication of loans for Russian and CIS clients, the management of emerging market bond portfolios and trading on the Russian and CIS markets. VTBA has benefited from its early entry into the Russian and CIS markets, in which it has built up a profound knowledge. In Moody's view, the bank therefore has good potential over time to strengthen its franchise and customer base through a closer integration into the VTB group. The BFSR also takes into account some significant business and financial risks relating to VTBA's business model. VTBA's financial fundamentals are characterized by a robust capitalization, good levels of profitability and efficiency and satisfactory asset quality. However, the bank will have to demonstrate in upcoming periods its ability to generate increasing revenues and satisfactory profitability and efficiency indicators, accompanied by a lower overall risk profile and a more meaningful and entrenched customer franchise. A materially increasing risk appetite or a weaker risk return profile would be seen as negative driving factors for the bank's rating. Moody's views the bank's ample base of retained earnings as an important source of funding and revenues for the bank and expects that VTBA's credit quality -- which is supported by its regulation and supervision by Austria's FMA (Finanzmarktaufsicht) -- will eventually benefit from broader, more firmly established funding sources. Based in Vienna, Austria, VTB Bank (Austria) AG had total assets of EUR1.4 billion and equity of EUR360 million as of Dec. 31, 2005 and recorded a net profit of EUR52 million. ============= B E L G I U M ============= GOODYEAR TIRE: Posts US$48 Million Net Loss in 2006 Third Qtr. -------------------------------------------------------------- Including US$126 million in after-tax restructuring charges, The Goodyear Tire & Rubber Company reported a net loss of US$48 million during the 2006 third quarter. Of those charges, US$107 million is related to the previously announced plan to close the Tyler, Texas, tire plant. Net income for the first nine months of 2006 was US$28 million compared to net income of US$279 million during the year-ago period. Sales for the first nine months of 2006 were a record US$15.3 billion, an increase of 3% from US$14.8 billion in the 2005 period. The results also reflect higher raw material costs of US$249 million, offset partially by US$225 million of improved price/mix, and lower tire volume. During the period, the company also recorded an after-tax gain of US$10 million from a supplier settlement, and after-tax expenses of US$7 million share) related to accelerated depreciation primarily for a previously announced plant closure in New Zealand. Net income in the 2005 quarter was US$142 million. Goodyear reported third quarter sales of US$5.3 billion, a record for any quarter and a 6% improvement compared to the year-ago period excluding the impact of businesses divested in 2005, and despite the strategic decision to exit certain segments of the private label tire business in North America. Third quarter 2006 sales were driven by improved pricing and product mix, particularly in North American Tire, and the favorable impact of currency translation, estimated at US$77 million. All five of the company's tire businesses achieved sales that were a record for any quarter. Tire unit volume was 55.8 million units in the quarter, compared to 58.4 million units in the 2005 period. This 4% decrease was in part a result of the company's move to exit certain segments of the private label tire business in North America. Revenue per tire increased 8% compared to the third quarter of 2005. "Despite ongoing market weakness in North America and record high raw material costs, we continue to demonstrate the strength of our business model changes and successful product portfolio," said Chairman and Chief Executive Officer Robert J. Keegan. "After a challenging first half, our European Union business achieved year-over-year improvements in sales, units and segment operating income. Our key business strategies are also continuing to drive excellent results in the Asia Pacific, Latin America and Eastern Europe, Middle East and Africa tire businesses," he said. "Although we are in the midst of a strike by the United Steelworkers in North America, we continue to work hard for a contract that is fair to all stakeholders and puts Goodyear on a level playing field with our competitors," Mr. Keegan said. "In the meantime, we are executing on our contingency plans to continue providing our customers with outstanding value, products and services." Segment Results Third quarter total segment operating income was US$313 million, a decrease of 5% compared to US$330 million in the 2005 period. The European Union; Eastern Europe, Middle East and Africa, and Asia Pacific businesses each achieved segment operating income records. Prior-year segment operating income benefited from US$8 million related to businesses divested in 2005. North America North American Tire's sales were a record for any quarter, and increased 5% compared to the year-ago period excluding the impact of divestitures in 2005, as a result of strong sales in the chemical and other tire related businesses, and favorable price and product mix, led by high-value Goodyear and Dunlop branded tires. Third quarter segment operating income was US$19 million, compared to US$58 million in the prior year period, reflecting lower volume resulting from reduced demand in the consumer replacement market, the exit from the wholesale private label business, and higher costs related to lower production. Favorable price and product mix of US$103 million partially offset approximately US$108 million in higher raw material costs. Segment operating income also benefited from lower SAG expenses and higher operating income from other tire related businesses. Divestitures in 2005 reduced third quarter 2006 sales by approximately US$61 million, segment operating income by US$8 million, and volume by 200,000 units. The 2005 quarter also included approximately US$10 million of costs associated with Hurricanes Katrina and Rita in the U.S. Gulf Coast region. European Union European Union Tire's sales were a record for any quarter and 12% higher than in the 2005 quarter, due primarily to improved pricing and product mix, the impact of foreign currency translation, estimated at US$61 million, and higher volume. Segment operating income was a third-quarter record. The increase primarily reflected improved pricing and product mix, as increased sales of consumer replacement tires -- especially winter tires -- compensated for a decline in OE unit sales. Lower SAG expense also helped to partially offset higher raw material costs, estimated at US$66 million. Eastern Europe Eastern Europe, Middle East and Africa Tire's sales were a record for any quarter and up 9% compared to the third quarter of 2005 due to improved pricing and product mix, and higher volume. The company estimates currency translation had a negative impact on sales of approximately US$10 million in the third quarter. Segment operating income was a record for any quarter, and represented a 20% improvement over 2005. This gain was due to improved pricing and product mix and higher volume. These offset higher raw material costs, estimated at US$17 million. Latin America Latin American Tire's sales were a record for any quarter and increased 9% compared to the prior-year period due to higher volume, the favorable impact of currency translation, estimated at US$9 million, and favorable pricing and product mix. Segment operating income was flat compared to the 2005 quarter, as the approximately US$7 million favorable impact of currency translation, higher volume, and improved pricing and product mix, were offset by higher raw material costs, estimated at US$26 million. Asia Pacific Asia Pacific Tire's sales were a record for any quarter and a 7% increase compared to the 2005 period due to improved pricing and product mix and favorable currency translation, estimated at US$2 million, partially offset by lower volume. Segment operating income was a record for any quarter and a 17% improvement compared to the 2005 quarter as a result of improved pricing and product mix, offset in part by higher raw material costs, estimated at US$22 million, and lower volume. Engineered Products Engineered Products' third quarter 2006 sales decreased 9% due to lower volume, primarily related to anticipated declines in military sales. This offset improved pricing and product mix, as well as favorable currency translation of approximately US$4 million. Segment operating income increased 15% due primarily to a favorable legal settlement with a supplier of approximately US$10 million. Pricing and product mix improved compared to the prior-year quarter, but higher raw material costs, estimated at US$10 million, and lower volume had a negative impact on results. Contract Proposal Goodyear disclosed that its bargaining team is returning to Cincinnati in the hopes USW representatives will return to discussions. The company says its union proposal includes provisions to protect employment levels at all tire manufacturing plants other than Tyler, Texas, which the company has announced the intention to close. Also included is a proposal to contribute US$660 million to a Voluntary Employees Beneficiary Association, an independent trust fund that would provide retiree health care benefits to USW members and would eliminate the portion of Goodyear's post-retirement health care obligations related to the USW workforce. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs more than 80,000 people worldwide. It has marketing operations in almost every country around the world. Goodyear employs more than 80,000 people worldwide. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. The company's European headquarters is based in Brussels, Belgium. * * * As reported in the Troubled Company Reporter on Oct. 23, 2006, Fitch Ratings placed The Goodyear Tire & Rubber Company on Rating Watch Negative. Goodyear's current debt and recovery ratings are -- Issuer Default Rating (IDR) 'B'; US$1.5 billion first lien credit facility 'BB/RR1'; US$1.2 billion second lien term loan 'BB/RR1'; US$300 million third lien term loan 'B/RR4'; US$650 million third lien senior secured notes 'B/RR4'; Senior Unsecured Debt 'CCC+/RR6'. As reported in the Troubled Company Reporter on Oct. 19, 2006, Standard & Poor's Ratings Services placed its 'B+' corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations. Goodyear has total debt of about US$7 billion. As reported in the Troubled Company Reporter on Oct. 18, 2006, Moody's Investors Service affirmed Goodyear Tire & Rubber Company's B1 Corporate Family rating, but changed the outlook to negative from stable. At the same time, the company's Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. These rating actions reflect the increased operating uncertainty arising from the ongoing United Steelworkers strike at Goodyear's North American facilities, and the company's decision to increase cash on hand by drawing-down US$975 million under its domestic revolving credit facility. GOODYEAR TIRE: Outlines New Proposal to Workers on Strike --------------------------------------------------------- The Goodyear Tire & Rubber Company informed all steelworkers on strike, in a letter dated November 9, of its proposal to the United Steelworkers of America. The United Steelworkers struck Goodyear on Oct. 5 after refusing to further extend a three-year master contract with the Company. Following the July 22, 2006 termination of the master contract, USW and Goodyear had agreed to a day-to-day extension of the pact. The master contract between the USW and Goodyear covers 14,000 workers at 12 U.S. plants in Akron, Ohio; Gadsden, Ala.; Buffalo, N.Y., St. Marys, Ohio; Lincoln, Neb.; Topeka, Kan.; Tyler, Texas; Danville, Va.; Marysville, Ohio; Union City, Tenn.; Sun Prairie, Wis.; and Fayetteville, N.C. Pursuant to the master contract, the USW had agreed to the closure of Goodyear's Huntsville, Ala. facility and wage, pension and health care cuts aimed at providing Goodyear with additional financial flexibility. As reported in the Troubled Company Reporter on Oct. 6, USW executive vice president Ron Hoover commented that the union struck because Goodyear had left it with no other option. Mr. Hoover said "we cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive." Goodyear's Offer Goodyear's package of proposals, as of November 9, would: -- preserve the current wage structure of every active associate in every circumstance, including those on layoff for less than two years; -- provide wage increases for some associates; -- continue 100% COLA for all current employees; -- maintain or improve current benefits package; -- restore service credit to current associates for the two-year pension freeze; -- protect all USW master agreement plants except Tyler; -- share profits on an ongoing basis; -- maintain the current Supplemental Unemployment Benefits program; -- maintain the current Supplemental Workers Compensation program, and; -- except in Gadsden, continue all current incentive programs on all incentive jobs for all current employees who are currently on incentive jobs. USW has rejected this offer. However, Goodyear urged individual union members to decide for themselves whether to continue supporting the strike. Under the applicable terms of the 2003 master agreement, striking workers are entitled to return to work at any time. Goodyear said associates who return to work prior to Jan. 3, 2007, will maintain their company-provided benefits package beyond the Jan. 3, 2007 cut-off date. Tyler Closure In the same letter to the union members, Goodyear explained the reasons behind its decision to close its facility in Tyler, Texas. According to the company, the Tyler plant closure is related to the company's exit from the extremely unprofitable wholesale private label business. Goodyear said the problem was getting worse for the Tyler plant because of a continuous drop in demand for the types of products made there, the ongoing flood of imports from low-cost countries and rising raw material costs. The company explained that continuing the wholesale private label business would mean less money available to modernize factories, bring more new branded high value added products into production at USW plants, fund pensions, provide retirement benefits and fund marketing and other programs needed to continue its turnaround. Goodyear also disputed allegations that the Tyler closure is the first step in a grander plan to phase out the Company's North American manufacturing operations and that it had been investing disproportionately offshore. The company assured its workers that going forward, it is proposing minimum investments in USW master plants of $447 million over the life of the contract. The company added that it has agreed to protect all plants, except for Tyler, for the life of the agreement. Retiree Medical Benefits Goodyear also explained why it believes that establishing a trust fund provides the best solution for retirees, Goodyear and all stakeholders. The Company said the intent of proposing an independent trust fund is to make retiree benefits more secure as well as more affordable in the long run, with the potential for retirees to keep pace with, if not out-run, inflation. According to Goodyear, establishing a Voluntary Employees' Beneficiary Associations, commonly called VEBA trusts, for Goodyear retirees would provide increased security for current and future retirees. Under the Company's current retiree medical benefits plan, there is zero money currently set aside to provide and secure retiree medical benefits. Under the new proposal, Goodyear would make a contribution valued at $660 million to initiate the trust and secure the benefits. The only alternative to the VEBA trust is to continue the current approach of providing retiree medical benefits. However, Goodyear warned that premiums will inevitably go higher and higher. According to the company, premiums are projected to exceed $200 in 2008 and reach nearly $350 in 2009 and will continue to increase with medical inflation. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter on Oct. 23, 2006, Fitch Ratings placed The Goodyear Tire & Rubber Company on Rating Watch Negative. Goodyear's current debt and recovery ratings are -- Issuer Default Rating (IDR) 'B'; $1.5 billion first lien credit facility 'BB/RR1'; $1.2 billion second lien term loan 'BB/RR1'; $300 million third lien term loan 'B/RR4'; $650 million third lien senior secured notes 'B/RR4'; Senior Unsecured Debt 'CCC+/RR6'. As reported in the Troubled Company Reporter on Oct. 19, 2006, Standard & Poor's Ratings Services placed its 'B+' corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations. Goodyear has total debt of about $7 billion. As reported in the Troubled Company Reporter on Oct. 18, 2006, Moody's Investors Service affirmed Goodyear Tire & Rubber Company's B1 Corporate Family rating, but changed the outlook to negative from stable. At the same time, the company's Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. These rating actions reflect the increased operating uncertainty arising from the ongoing United Steelworkers strike at Goodyear's North American facilities, and the company's decision to increase cash on hand by drawing-down $975 million under its domestic revolving credit facility. JLG INDUSTRIES: Launches Sr. Debt Offer & Consent Solicitation -------------------------------------------------------------- JLG Industries Inc. commenced offers to purchase for cash any and all of its outstanding: -- 8-1/4% Senior Notes due 2008 in an aggregate principal amount of US$89,545,000; and -- 8-3/8% Senior Subordinated Notes due 2012 in an aggregate principal amount of US$113,750,000. In connection with the offers, holders of the Notes are being solicited to provide consents to certain amendments to the indentures for the Notes that would eliminate most of the restrictive covenants and events of default contained in the indentures. JLG is making the offers as required by the Agreement and Plan of Merger dated Oct. 15, 2006, by and among JLG, Oshkosh Truck Corporation and Steel Acquisition Corp. The consent solicitations will expire at 5:00 p.m., New York City time, on Nov. 20, 2006, and the offers will expire at midnight, New York City time, on Dec. 5, 2006, in each case unless extended or earlier terminated by JLG. As described in more detail in the Offer to Purchase and Consent Solicitation Statement dated Nov. 6, 2006, a copy of which will be distributed to noteholders promptly, the total consideration for each US$1,000 principal amount of Notes validly tendered and accepted for purchase by JLG will be calculated based upon a fixed spread of 50 basis points over the bid side yield on the 4.875% U.S. Treasury Note due Apr. 30, 2008, in the case of the 2008 Notes, and the 3.5% U.S. Treasury Note due May 31, 2007, in the case of the 2012 Notes. The foregoing total consideration for the Notes includes a consent payment equal to US$30 per US$1,000 principal amount of Notes tendered. Holders must validly tender their Notes on or before the Consent Deadline in order to be eligible to receive the total consideration, which includes the consent payment. Holders who validly tender their Notes after the Consent Deadline and before the expiration of the offers will only be eligible to receive an amount equal to the total consideration minus the consent payment. Additionally, holders whose Notes are purchased pursuant to the offers will receive any accrued but unpaid interest for the period up to but not including the payment date for the Notes. JLG Industries, Inc. -- http://www.jlg.com/-- produces access equipment (aerial work platforms and telehandlers) and highway- speed telescopic hydraulic excavators. JLG's manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents. * * * As reported in the Troubled Company Reporter on May 24, 2006, Moody's Investors Service upgraded the debt ratings of JLG Industries, Inc. -- Corporate Family Rating to Ba3 from B1, Senior Unsecured Notes to B1 from B2, and Senior Subordinate Notes to B2 from B3. Moody's said the outlook is changed to stable from positive. JLG INDUSTRIES: Moody's Cuts Rating on US$113.8-Mln Notes to B2 --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 first time rating to Oshkosh Truck Corp.'s US$3.5 billion first lien senior secured credit facility (US$500 million revolving credit facility, US$400 million Term Loan A, and US$2.6 billion Term Loan B) and a Ba3 corporate family rating. The purpose of the proposed credit facility is to fund Oshkosh's acquisition of JLG Industries, Inc. for an aggregate purchase price of US$3.2 billion, net cash and including closing costs. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of Ba3, and a loss given default of LGD3 (47%) for the first lien senior secured credit facility. Moody's also assigned a SGL-2 Speculative Grade Liquidity Rating to Oshkosh. The rating outlook is stable. In a related action, Moody's affirmed the B2 rating (LGD6, 97%) for JLG's US$89.5 million Subordinated Notes and lowered to B2 (LGD6, 96%) from Ba3 the rating for its US$113.8 million Unsecured Notes. The rating outlook is stable. As part of the acquisition, JLG has commenced a tender offer and consent solicitation for these note issues. Under the terms of this offer any untendered notes will be subject to a stripping of protective covenants. The ratings have been adjusted to reflect the risk of any stub pieces that may remain outstanding following expiry of the offer. If a substantial portion of the issues is redeemed as part of the tender offer or if insufficient information is available to monitor these specific instruments within the overall Oshkosh group, the ratings could be withdrawn. The corporate family rating and probability of default ratings of JLG have been withdrawn. While recognizing the financial strength of Oshkosh before the acquisition, Moody's analyst Peter Doyle said, "the Ba3 corporate family rating reflects the reduction in credit metrics that will result from its acquisition of JLG". Oshkosh will increase balance sheet debt in excess of US$3.1 billion. As a result of the increased leverage, credit metrics will erode on a projected basis for 2007: EBIT/interest to about 2.8x; FCF/Debt to 2.5%; and, Debt/EBITDA to about 4.6x (as adjusted per Moody's FM Methodology.) While meeting debt service requirements of its leveraged capital structure, Oshkosh must also contend with the ongoing cyclicality of the non-residential construction sector, JLG's primary end market, and integrating a significant acquisition. These weaknesses, however, are balanced against the potential benefits of combining Oshkosh and JLG. JLG's strong financial results are driven from the success of the North American economy, the ongoing robust non-residential construction market, and its strategic alliance with Caterpillar. Additionally, Oshkosh should benefit from the sharing of technologies, expected savings from procurement opportunities, and capitalizing on JLG's existing operating efficiencies. These strengths in addition to the company's rationalization program and a commitment to maintain ample liquidity should enable Oshkosh to strengthen debt protection measures over the intermediate term. The stable outlook for Oshkosh reflects Moody's expectations that its debt protection measures should be supportive of the Ba3 rating over the next twelve to eighteen months. Moody's anticipates that Oshkosh will improve its operations due to increasing diversification of its product lines, strong demand in most of its end-markets, and a commitment to debt reduction. The Ba3 rating of the US$3.5 billion first lien senior secured credit facility reflects an LGD3 (47%) loss given default assessment as this facility represents the company's entire debt structure and offers superior collateral position over other creditors who would have potential claims. The credit facility will have a first lien on substantially all of the company's assets excluding real estate, and where applicable, capital stock of subsidiaries. The SGL-2 Speculative Grade Liquidity Rating reflects Moody's belief that the company will maintain a good liquidity profile over the next 12-month period. The SGL rating anticipates that around US$290 million in availability at closing under the company's proposed first lien senior secured credit facility and free cash flow should be sufficient to fund the company's capital spending and operational needs over the next 12 months. Oshkosh ratings/assessments assigned: * Corporate family rating Ba3 * Probability-of-default rating Ba3 * Speculative Grade Liquidity at SGL-2 LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$500 million senior secured revolving credit facility due late 2011 Ba3 LGD3 47% US$400 million senior secured Term Loan A due late 2011 Ba3 LGD3 47% US$2.6 billion senior secured Term Loan B due late 2013 Ba3 LGD3 47% JLG ratings affirmed: US$113.8 million 8.375% Gtd. Sr. Subordinated Notes due 2012 B2 LGD6 97% JLG ratings lowered: US$89.5 million 8.25% Gtd. Sr. Unsecured Notes due 2008 to B2 LGD6 96% from Ba3 LGD4 56% JLG ratings withdrawn: * Corporate family rating Ba3 * Probability-of-default rating Ba3 Oshkosh, headquartered in Oshkosh, Wisconsin, is a diversified heavy equipment manufacturer currently with three business segments supporting the defense, fire and emergency, and commercial end markets. JLG industries, Inc., headquartered in McConnellsburg, Pennsylvania, with executive offices in Hagerstown, Maryland, is a leading manufacturer of aerial work platforms and telehandlers. =============== B U L G A R I A =============== BALKAN AIRLINES: French Court Orders State to Pay Zeevi Claim ------------------------------------------------------------- The Arbitrary Court in Paris has ordered the Bulgarian government to pay Gad Zeevi, a 75% owner of bankrupt carrier Balkan Airlines, US$10 million in relation to his claim against the carrier, The Sofia Weekly reports. In October 2001, Mr. Zeevi was taken off the airline's creditor list, refusing to recognize Balkan's BGN48 million debt allegedly owed to two companies owned by Mr. Zeevi, the news agency relates. About the Company Balkan Bulgarian Airlines was established on June 29, 1947. It served as the national air carrier of the Republic of Bulgaria until it declared insolvency in 2001. In February 2001, a Bulgarian court placed Balkan Airlines into receivership. Bulstrad, a local insurance company, initiated the bankruptcy proceedings. =========== C Y P R U S =========== BANK OF CYPRUS: Earns EUR225,726 for First Nine Months 2006 ----------------------------------------------------------- Bank of Cyprus Group released its consolidated financial results for the nine months and third quarter ended Sept. 30, 2006. The group posted EUR225,726 in net profit against EUR1.2 million in revenues for the first nine months of 2006, compared with EUR87,386 in net profit against EUR1 million in revenues for the same period in 2005. The group posted EUR78,301 in net profit against EUR441,634 in revenues for the third quarter of 2006, compared with EUR33,093 in net profit against EUR121,489 in revenues for the same period in 2005. About Bank of Cyprus Headquartered in Nicosia, Cyprus, Bank of Cyprus -- http://www.bankofcyprus.com/-- offers a wide range of financial products and services, which include banking services in Cyprus, Greece, United Kingdom, Australia and Channel Islands, finance, leasing, factoring, brokerage, fund management, general and life insurance services in Cyprus and Greece, and investment banking services in Cyprus. * * * As reported in the Troubled Company Reporter-Europe on July 25, Fitch Ratings affirmed Bank of Cyprus's Issuer Default rating at A- and removed it from Rating Watch Negative. A Stable Outlook is assigned. Its other ratings are affirmed at Support 2, Short-term F2 and Individual C/D. The rating actions follow the bank's announcement to abandon its public offer to acquire a 100% stake in Emporiki Bank of Greece. The ratings were placed on RWN because of the negative impact that an eventual acquisition of Emporiki would have had on BOC's regulatory capital ratios as well as the integration risks involved in the operation. BANK OF CYPRUS: Moody's Changes D+ FSR Outlook to Positive ---------------------------------------------------------- Moody's Investors Service changed to positive from stable the outlooks for the Baa1 foreign currency long-term deposit rating and D+ financial strength rating assigned to Bank of Cyprus Public Company Ltd. Also changed to positive from stable, are the outlooks for BOC's Baa1 foreign currency senior debt and Baa2 foreign currency subordinated debt ratings. At the same time, Moody's affirmed the Prime-2 for both foreign currency short-term deposits and for commercial paper. According to Moody's, this rating action reflects the ongoing enhancement of BOC's financial fundamentals over recent financial quarters. Following a few years of poor financial performance, primarily due to the problems faced by its operations in Cyprus, BOC has witnessed a significant improvement in its financial metrics, arising from management's actions to reinvigorate the franchise and to restore the bank's financial condition. Thus, asset quality has improved significantly during 2006 despite the introduction of stricter regulatory criteria for measuring loan performance since January 2006. Accordingly, as a result of: -- higher problem loan recoveries and write-offs; -- reduction in the inflow of new problem loans; and -- loan portfolio growth, the bank's ratio of non-performing loans to gross loans declined to 6.6% in September 2006 (down from a comparable ratio of 8.6% in March 2006), while the provisioning coverage for problem loans increased to 60% in September 2006 (up from 50% in December 2005). Although these trends are viewed positively, Moody's cautions that BOC's main indicators are weaker than those of similarly- rated banks in Europe, while the current regulatory requirement of not classifying overdue loans irrespective of performance, in the case that they are fully covered by tangible collateral, continues to qualify these ratios. According to Moody's, in tandem with improving asset quality, BOC's overall equity position has been strengthened (with its ratio of equity to assets increasing to 6.3% in September 2006), boosted by a rights issue during the last year and benefiting from an improving internal capital-generating capability. More importantly, Moody's notes that the bank's economic capital position has recovered significantly, supported by enhanced provisioning coverage for problem loans and a sharp reduction in uncovered pension liabilities. Hence, with the level of non- provided problems loans falling to 25% of equity in September 2006, the bank's ratio of adjusted equity to assets jumped to 4.8% in September 2006 (up from 3.7% in December 2005). Although the bank's enhanced capitalization is viewed favorably, Moody's feels that a higher level of equity position and/or stronger problem loan provisioning coverage would be more appropriate given the bank's overseas expansion plans -- primarily through branches in Greece but also in light of future plans for Russia and Romania. Moody's also notes the bank's main profitability indicators have been increasing, supported by wider interest margins, higher fee income, contained operating expenses and declining loan loss provisioning costs. The rating agency believes that the higher profitability trend may continue, underpinned by higher business volumes in the bank's domestic operations, the maturing of the branch network in Greece and lower loan loss provisioning requirements. The positive outlook is also based on BOC's positive franchise dynamics, characterized by a dominant position in its domicile market and an increasingly valuable franchise in Greece. A more focused strategy in its domestic operations, coupled with better execution, is yielding market share gains in the retail lending business at the expense of the country's credit cooperatives, reinforcing an already dominant, largely unthreatened market position. The overall franchise is complemented by the growing operations in Greece, which enhance the group's key financial metrics and lead to higher risk and revenue diversification. Furthermore, the ongoing maturing of a relatively young branch network is expected to lead to greater business volumes and better operational efficiencies that could boost the group's profitability, though Moody's cautions that the credit risk resilience of the operations remains untested. In conclusion, Moody's points out that an upgrade of BOC's ratings will be dependent on: -- further improvements in asset quality in tandem with the adoption of stricter regulatory criteria for classifying problem loans in order to bring them in line with international best practice; -- a continued upward trend in profitability; and -- a higher adjusted equity position and/or better provisioning coverage. Bank of Cyprus Public Company Ltd. is headquartered in Nicosia, Cyprus, and had total assets of CYP14.0 billion (EUR24.3 billion) as at end-September 2006. HELLENIC BANK: Moody's Changes D FSR Outlook to Stable ------------------------------------------------------ Moody's Investors Service changed to stable from negative the outlook for the D Financial Strength Rating assigned to Hellenic Bank Public Company Limited Cyprus. At the same time, Moody's has affirmed the bank's Baa2 long-term foreign currency debt and deposit ratings and the Prime-2 short- term foreign currency deposit and commercial paper ratings, with stable outlooks. The bank's FSR has been on negative outlook since August 2005. According to Moody's, the change to stable from negative in the FSR outlook reflects the ongoing improvement in Hellenic Bank's main financial fundamentals. The bank's D FSR continues to capture its well-established franchise in its domicile, although it remains constrained by relatively moderate - though improving - financial measures as regards asset quality, earning power and capitalization. Moody's notes that the bank, following a phase of weak financial performance, underwent an extensive top management change in 2005. To arrest a weakening financial performance, the new management has launched a major restructuring program aiming to improve the bank's financial condition, revive the loss-making operations in Greece, and enhance the overall competitiveness of the group. Recent data suggest that management is making inroads towards putting the bank on a more sound footing. Specifically, although Hellenic Bank's credit portfolio quality continues to suffer from a high level of delinquencies, recent indications suggest that the worst could be over and that credit quality is on an improving trend. June 2006 results showed the growth of non-performing loans falling to zero and the ratio of non-performing loans to gross loans improving to 13.7%, compared to a high 14.9% a quarter earlier. Furthermore, increased loan loss provisions resulted in better provisioning coverage (with loan-loss reserves covering 61% of non-performing loans, up from 58% a year earlier) and hence placing a lower level of equity at risk (with the ratio of non-provided non-performing loans to equity dropping to 50% in June 2006, compared to 68% a year earlier). Regarding profitability, Moody's adds that the bank returned to surplus in FY2005, following three consecutive years of net losses due to a very heavy provisioning burden. Furthermore, June 2006 results backed the improving profitability trends, with the losses in the Greek operations being significantly reduced. Going forward, Hellenic Bank is faced with a number of challenges, including: -- to further improve its credit portfolio quality leading to lower problematic exposures and, hence, reduced credit costs; -- to address its high cost structure which pressures its earning power; and -- to increase its core equity position, by bolstering its loan loss reserves and/or to increase its equity levels. Any success relating to these major challenges that could enhance overall the bank's financial fundamentals would result in positive pressure being exerted on its FSR. In affirming the bank's Baa2/Prime-2 foreign currency debt and deposit ratings, Moody's notes that these ratings are enhanced due to strong implicit external support. Although on a stand-alone basis the bank's debt and deposit ratings would be rated lower given its D FSR, these ratings are lifted higher due to Hellenic Bank's importance within its domestic banking system and the likelihood of support by the financial authorities if the bank were to face financial difficulties. Headquartered in Nicosia, Cyprus, Hellenic Bank Public Company Limited had total assets of CYP3.3 billion (EUR5.8 billion) as of June 2006. =========================== C Z E C H R E P U B L I C =========================== FREESCALE SEMICONDUCTOR: Gets Requisite Consents on 6.875% Notes ---------------------------------------------------------------- Freescale Semiconductor Inc. disclosed that, as of 5:00 p.m., prevailing eastern time, on Nov. 3, 2006, it had received tenders and consents from holders of US$349,829,000 in aggregate principal amount of its 6.875% senior notes due 2011, representing 99.951% of the outstanding 2011 notes, and from holders of US$499,875,000 in aggregate principal amount of the its 7.125% senior notes due 2014, representing 99.975% of the outstanding 2014 notes. As a result of the receipt of the requisite consents, Freescale intends to enter into a supplemental indenture with the trustee effecting the proposed amendments to the indenture governing the notes on Nov. 6, 2006. The proposed amendments, however, will become operative only when the validly tendered notes are accepted for payment by Freescale pursuant to the terms of the tender offers and consent solicitations. In accordance with the terms of the tender offers and consent solicitations, tendered notes may no longer be withdrawn and delivered consents may not be revoked, unless Freescale makes a material change to the terms of the tender offers or is otherwise required by law to permit withdrawal or revocation. Holders who have not yet tendered their notes may tender until 5:00 p.m., prevailing Eastern Time, on Nov. 21, 2006, unless extended or earlier terminated by Freescale. The tender offers are subject to the satisfaction of certain conditions, including the receipt of specified financing, the consummation of the merger pursuant to the previously announced Agreement and Plan of Merger, dated as of Sept. 15, 2006, by and among Freescale, Firestone Holdings LLC and Firestone Acquisition Corporation and certain other customary conditions. Freescale has engaged Credit Suisse Securities (USA) LLC and Citigroup Corporate and Investment Banking to act as dealer managers in connection with the tender offers and solicitation agents in connection with the consent solicitations. Any questions or requests for assistance may be directed to: Credit Suisse Securities (USA) LLC Tel: (800) 820-1653 (U.S. toll-free) (212) 325-7596 (collect) -- or -- Citigroup Corporate and Investment Banking Tel: (800) 558-3745 (U.S. toll-free) (212) 723-6106 (collect) D.F. King & Co., Inc. has been retained as Tender Agent and as Information Agent in connection with the tender offers and consent solicitations. Requests for additional copies of the Statement or any other document may be directed to: D.F. King & Co., Inc. 48 Wall Street, New York New York 10005 Tel: (800) 714-3312 (U.S. toll-free) About Freescale Freescale Semiconductor, Inc. -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries, including the Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Nov. 7, Moody's Investors Service assigned Freescale Semiconductor a corporate family rating of Ba3 and a speculative grade liquidity rating of SGL-1. A shareholder meeting has been scheduled for Nov. 13 to vote on the company's proposed acquisition, which is expected to close by the end of November 2006. In addition, Standard & Poor's Ratings Services kept its ratings, including the 'BB+' corporate credit rating, on Freescale Semiconductor Inc. on CreditWatch with negative implications, where they were placed on Sept. 11 following the company's announcement that it was considering a business transaction, later confirmed as a leveraged buyout. Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default Rating, senior unsecured notes, and senior unsecured bank credit facility to 'BB+' from 'BBB-' following the company's confirmation that it has entered into a definitive agreement to be purchased by a consortium of private equity firms for US$17.6 billion, the largest ever technology leveraged buy-out. =========== F R A N C E =========== EUROTUNNEL GROUP: Creditors Mull Liquidation Over Safeguard Plan ---------------------------------------------------------------- Senior creditors of Eurotunnel Group filed a legal suit in France in a move to block the company's latest plan to restructure its GBP6.2 billion debt, The Guardian reports citing unnamed sources. According to the report, the dissenting creditors objected against their inclusion in a financial creditors' committee, which accounts for about GBP4.3 billion of Eurotunnel's debt. They contended that only banks can be included in the committee, so institutional investors have to be excluded from the group. The sources added that the rebel creditors are optimistic an appellate court would accept their objection once the Commercial Court of Paris would trash the protest in the lower court, The Guardian says. The daily suggests that Oaktree Capital Management, a member of the Ad Hoc committee of senior creditors, is believed to be behind the legal move after dismissing the channel operator's rescue plan. Eurotunnel says the lawsuit will be immaterial on the process and the financial creditors' committee will proceed with a vote on the rescue plan. The creditors will vote on the debt plan this month or early December. If they accept the plan, an exchange offer on the outstanding shares will be made. Creditors Mull Liquidation as Best Option The company's creditors were planning to force the company into liquidation as the best option to recover money from the company, the paper relates. "It could be a very profitable business. One would suspect that liquidation would get a decent price for the business. We can accept a deal that has a certainty of return or decide that you can do better by going for a liquidation," an unnamed source told The Guardian. In the event of a liquidation, creditors like Deutsche Bank and Oaktree Capital will be first in line to receive cash from a sale. In a letter to Eurotunnel's shareholders, Chairman and Chief Executive Jacques Gounon warned that in the event that the creditors vote against the Safeguard plan, Eurotunnel will be placed into administration and could be liquidated, or sold by the Paris Commercial Court. "The asset value at liquidation has been estimated to be approximately GBP890 million, almost five times less than that put forwards in the plan," Mr. Gounon expressed. "Shareholders would receive nothing. The same situation would pertain if the company was sold: shareholders therefore have even more reason to mobilize themselves to demand that the two States refuse the ruinous transfer of the Concession," he added. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. JLG INDUSTRIES: Launches Sr. Debt Offer & Consent Solicitation -------------------------------------------------------------- JLG Industries Inc. commenced offers to purchase for cash any and all of its outstanding: -- 8-1/4% Senior Notes due 2008 in an aggregate principal amount of US$89,545,000; and -- 8-3/8% Senior Subordinated Notes due 2012 in an aggregate principal amount of US$113,750,000. In connection with the offers, holders of the Notes are being solicited to provide consents to certain amendments to the indentures for the Notes that would eliminate most of the restrictive covenants and events of default contained in the indentures. JLG is making the offers as required by the Agreement and Plan of Merger dated Oct. 15, 2006, by and among JLG, Oshkosh Truck Corporation and Steel Acquisition Corp. The consent solicitations will expire at 5:00 p.m., New York City time, on Nov. 20, 2006, and the offers will expire at midnight, New York City time, on Dec. 5, 2006, in each case unless extended or earlier terminated by JLG. As described in more detail in the Offer to Purchase and Consent Solicitation Statement dated Nov. 6, 2006, a copy of which will be distributed to noteholders promptly, the total consideration for each US$1,000 principal amount of Notes validly tendered and accepted for purchase by JLG will be calculated based upon a fixed spread of 50 basis points over the bid side yield on the 4.875% U.S. Treasury Note due Apr. 30, 2008, in the case of the 2008 Notes, and the 3.5% U.S. Treasury Note due May 31, 2007, in the case of the 2012 Notes. The foregoing total consideration for the Notes includes a consent payment equal to US$30 per US$1,000 principal amount of Notes tendered. Holders must validly tender their Notes on or before the Consent Deadline in order to be eligible to receive the total consideration, which includes the consent payment. Holders who validly tender their Notes after the Consent Deadline and before the expiration of the offers will only be eligible to receive an amount equal to the total consideration minus the consent payment. Additionally, holders whose Notes are purchased pursuant to the offers will receive any accrued but unpaid interest for the period up to but not including the payment date for the Notes. JLG Industries, Inc. -- http://www.jlg.com/-- produces access equipment (aerial work platforms and telehandlers) and highway- speed telescopic hydraulic excavators. JLG's manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents. * * * As reported in the Troubled Company Reporter on May 24, 2006, Moody's Investors Service upgraded the debt ratings of JLG Industries, Inc. -- Corporate Family Rating to Ba3 from B1, Senior Unsecured Notes to B1 from B2, and Senior Subordinate Notes to B2 from B3. Moody's said the outlook is changed to stable from positive. JLG INDUSTRIES: Moody's Cuts Rating on US$113.8-Mln Notes to B2 --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 first time rating to Oshkosh Truck Corp.'s US$3.5 billion first lien senior secured credit facility (US$500 million revolving credit facility, US$400 million Term Loan A, and US$2.6 billion Term Loan B) and a Ba3 corporate family rating. The purpose of the proposed credit facility is to fund Oshkosh's acquisition of JLG Industries, Inc. for an aggregate purchase price of US$3.2 billion, net cash and including closing costs. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of Ba3, and a loss given default of LGD3 (47%) for the first lien senior secured credit facility. Moody's also assigned a SGL-2 Speculative Grade Liquidity Rating to Oshkosh. The rating outlook is stable. In a related action, Moody's affirmed the B2 rating (LGD6, 97%) for JLG's US$89.5 million Subordinated Notes and lowered to B2 (LGD6, 96%) from Ba3 the rating for its US$113.8 million Unsecured Notes. The rating outlook is stable. As part of the acquisition, JLG has commenced a tender offer and consent solicitation for these note issues. Under the terms of this offer any untendered notes will be subject to a stripping of protective covenants. The ratings have been adjusted to reflect the risk of any stub pieces that may remain outstanding following expiry of the offer. If a substantial portion of the issues is redeemed as part of the tender offer or if insufficient information is available to monitor these specific instruments within the overall Oshkosh group, the ratings could be withdrawn. The corporate family rating and probability of default ratings of JLG have been withdrawn. While recognizing the financial strength of Oshkosh before the acquisition, Moody's analyst Peter Doyle said, "the Ba3 corporate family rating reflects the reduction in credit metrics that will result from its acquisition of JLG". Oshkosh will increase balance sheet debt in excess of US$3.1 billion. As a result of the increased leverage, credit metrics will erode on a projected basis for 2007: EBIT/interest to about 2.8x; FCF/Debt to 2.5%; and, Debt/EBITDA to about 4.6x (as adjusted per Moody's FM Methodology.) While meeting debt service requirements of its leveraged capital structure, Oshkosh must also contend with the ongoing cyclicality of the non-residential construction sector, JLG's primary end market, and integrating a significant acquisition. These weaknesses, however, are balanced against the potential benefits of combining Oshkosh and JLG. JLG's strong financial results are driven from the success of the North American economy, the ongoing robust non-residential construction market, and its strategic alliance with Caterpillar. Additionally, Oshkosh should benefit from the sharing of technologies, expected savings from procurement opportunities, and capitalizing on JLG's existing operating efficiencies. These strengths in addition to the company's rationalization program and a commitment to maintain ample liquidity should enable Oshkosh to strengthen debt protection measures over the intermediate term. The stable outlook for Oshkosh reflects Moody's expectations that its debt protection measures should be supportive of the Ba3 rating over the next twelve to eighteen months. Moody's anticipates that Oshkosh will improve its operations due to increasing diversification of its product lines, strong demand in most of its end-markets, and a commitment to debt reduction. The Ba3 rating of the US$3.5 billion first lien senior secured credit facility reflects an LGD3 (47%) loss given default assessment as this facility represents the company's entire debt structure and offers superior collateral position over other creditors who would have potential claims. The credit facility will have a first lien on substantially all of the company's assets excluding real estate, and where applicable, capital stock of subsidiaries. The SGL-2 Speculative Grade Liquidity Rating reflects Moody's belief that the company will maintain a good liquidity profile over the next 12-month period. The SGL rating anticipates that around US$290 million in availability at closing under the company's proposed first lien senior secured credit facility and free cash flow should be sufficient to fund the company's capital spending and operational needs over the next 12 months. Oshkosh ratings/assessments assigned: * Corporate family rating Ba3 * Probability-of-default rating Ba3 * Speculative Grade Liquidity at SGL-2 LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- US$500 million senior secured revolving credit facility due late 2011 Ba3 LGD3 47% US$400 million senior secured Term Loan A due late 2011 Ba3 LGD3 47% US$2.6 billion senior secured Term Loan B due late 2013 Ba3 LGD3 47% JLG ratings affirmed: US$113.8 million 8.375% Gtd. Sr. Subordinated Notes due 2012 B2 LGD6 97% JLG ratings lowered: US$89.5 million 8.25% Gtd. Sr. Unsecured Notes due 2008 to B2 LGD6 96% from Ba3 LGD4 56% JLG ratings withdrawn: * Corporate family rating Ba3 * Probability-of-default rating Ba3 Oshkosh, headquartered in Oshkosh, Wisconsin, is a diversified heavy equipment manufacturer currently with three business segments supporting the defense, fire and emergency, and commercial end markets. JLG industries, Inc., headquartered in McConnellsburg, Pennsylvania, with executive offices in Hagerstown, Maryland, is a leading manufacturer of aerial work platforms and telehandlers. LAZARD LTD: Posts US$35 Million Third Quarter 2006 Net Income ------------------------------------------------------------- Lazard Ltd.'s net income on a fully exchanged basis for the third quarter of 2006 decreased 32% to US$35.0 million or US$0.34 per share, from US$51.7 million or US$0.52 per share in the same period of 2005, RTTNews reports. RTTNews relates that on average, six analysts surveyed by First Call/Thomson Financial expected Lazard to earn US$0.46 per share for the third quarter of 2006. Lazard's operating income dropped by 36% to US$49.19 million for the quarter of 2006, compared with the US$77.3 million reported in the same period in 2005, RTTNews notes. Operating income is after interest expense and before income taxes and minority interests. RTTNews underscores that the operating revenue of Lazard for this year's third quarter fell 15% to US$317.61 million, from US$374.26 million in the same quarter last year. Operating revenue does not include interest expense relating to financing activities and revenue relating to the consolidation of LAM General Partnerships, each of which is included in net revenue. Lazard's net revenue decreased 17% to US$297.51 million in the third quarter of 2006, from US$356.90 million in the third quarter of 2005, RTTNews says. Lazard told RTTNews that the decline in revenues and earnings were due to lower number of M&A transactions closing in the third quarter of 2006 and the comparison with unusually high 2005 third-quarter revenue. RTTNews emphasizes that the net income of Lazard before exchange of outstanding exchangeable interests for the first nine months of 2006 rose 32% to US$56.4 million or US$1.45 per share, compared with the income from continuing operations of US$42.7 million or US$1.14 per share for the first nine months of 2005. Lazard's operating revenue for the first nine months of 2006 rose 11% to US$1,079.6 million, from to US$969.9 million in the same period of 2005, RTTNews states. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and Brazil. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. In Europe, the firm maintains operations in France, Germany, Spain and the United Kingdom, among others. At June 30, 2006, Lazard's balance sheet showed US$2.1 billion in total assets and US$2.8 billion in total liabilities, resulting in US$745 million stockholders' deficit. ============= G E O R G I A ============= PROCREDITBANK GEORGIA: Fitch Affirms Foreign Currency IDR at B -------------------------------------------------------------- Fitch Ratings affirmed ProCreditBank (Georgia)'s ratings at foreign currency Issuer Default B, Short-term foreign currency B, local currency IDR B+, Short-term local currency B, Individual D/E, and Support 4. The Outlooks on the bank's IDRs remain Stable. The IDR, Short-term and Support ratings of ProCredit Georgia are driven by the likelihood of support from its majority shareholder, ProCredit Holding AG, although the extent to which this support can be factored into the ratings is limited by Georgia's country risk. The Individual rating reflects credit and operational risks arising from rapid network and business expansion, modest profitability as well as a difficult, albeit improving, operating environment. Fitch also notes a broadening of the bank's franchise and regional penetration, its sound capitalization and its good risk management tools, enhanced by PCH's ongoing support and supervision. The bank's funding profile is being diversified through customer accounts, although some concentration on facilities from the shareholders remains. An improvement in Georgia's country risk would have positive implications for the bank's IDRs, while any worsening in this would have negative implications for the support-driven ratings. An upgrade of the Individual rating could follow a significant increase of the bank's size without asset quality compromises, which would result in improved internal capital generation, as well as increased funding diversification. Downside risk is limited. ProCredit Georgia is ranked fourth by total assets in Georgia with 11% of banking sector assets at end-Q306. It was established in 1999 and forms a part of a global network of 18 ProCredit banks, which was set up by private and public sector investors to provide financing to micro and SME customers in developing markets. PCH is a strategic investor and forms the administrative headquarters for the ProCredit group, outlining general strategy and procedures, as well as sharing best practice among the ProCredit bank members. ============= G E R M A N Y ============= BLUE CULT: Claims Registration Ends November 14 ----------------------------------------------- Creditors of Blue cult Walter GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Georg Welslau. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Dec. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 Blue cult Walter GmbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Blue cult Walter GmbH Attn: Sven Walter, Manager Eschstrasse 17 32257 Buende, Germany The administrator can be contacted at: Georg Welslau Bismarckstr. 43 32427 Minden, Germany BUCKEL HAUSTECHNIK: Claims Registration Ends November 13 -------------------------------------------------------- Creditors of BUCKEL Haustechnik KG have until Nov. 13 to register their claims with court-appointed provisional administrator Stefan Oppermann. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on Nov. 16 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuernberg Meeting Room 152/I Flaschenhofstr. 35 Nuernberg, Germany The Court will also verify the claims set out in the administrator's report at 10:20 a.m. on Dec. 7, at the same venue. The District Court of Nuernberg opened bankruptcy proceedings against BUCKEL Haustechnik KG on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: BUCKEL Haustechnik KG Kellermannstr. 33 90455 Nuernberg, Germany The administrator can be contacted at: Dr. Stefan Oppermann Aussere Sulzbacher Road 118 90491 Nuernberg, Germany Tel: 0911/59890-0 Fax: 0911/59890-11 CH MODE: Claims Registration Ends November 14 --------------------------------------------- Creditors of CH Mode Christine Hochgraf GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Christian Graf Brockdorff. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Dec. 9 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt (Oder) opened bankruptcy proceedings against CH Mode Christine Hochgraf GmbH on Sept. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: CH Mode Christine Hochgraf GmbH Vierwaldstatter Road 80 16341 Panketal OT Schwanebeck, Germany The administrator can be contacted at: Christian Graf Brockdorff Breite Strasse 9 A 14467 Potsdam, Germany ELEX ALPHA: S&P Assigns BB- Rating on EUR22-Mln Class E Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR360 million senior secured floating- rate notes to be issued by eleX Alpha S.A. In addition, eleX Alpha will issue EUR40 million of unrated notes. The collateral will comprise a portfolio of predominantly senior-secured leveraged loans, but may also include second-lien loans, mezzanine loans, and high-yield bonds. This will be the first European CDO of leveraged loans transaction managed by DWS Finanz-Service GmbH. The transaction has a reinvestment period of six years and DWS Finanz-Service will be the collateral manager. The ratings reflect commensurate credit enhancement in the form of overcollateralization and subordination, a diversified collateral pool of loans and derivative financial instruments, currency risk protections, strong collateral investment guidelines, the expected bankruptcy-remoteness of the issuer, and various amortization triggers. Ratings List eleX Alpha S.A. EUR400 Million Senior Secured Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A-1(1) AAA 80 A-2 AAA 178 B AA 38 C A 20 D BBB- 22 E BB- 22 Subordinated NR 40 (1) The class A-1 notes are revolving obligations and can be repaid and redrawn at any time during the reinvestment period. The class A-1 notes may be drawn either in euros or British pounds sterling. Sterling advances will be indexed to LIBOR and euro advances to EURIBOR. NR-Not rated. FAB FERNMELDEANLAGENBAU: Claims Registration Ends November 14 ------------------------------------------------------------- Creditors of FAB Fernmeldeanlagenbau GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Christian Graf Brockdorff. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 19 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt (Oder) opened bankruptcy proceedings against FAB Fernmeldeanlagenbau GmbH on Sept. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: FAB Fernmeldeanlagenbau GmbH Meistergasse 2 15366 Dahlwitz-Hoppegarten, Germany The administrator can be contacted at: Christian Graf Brockdorff Breite Strasse 9 A 14467 Potsdam, Germany GEMATEC COLOR: Claims Registration Ends November 15 --------------------------------------------------- Creditors of Gematec Color GmbH + Co. KG have until Nov. 15 to register their claims with court-appointed provisional administrator Frank Nikolaus. Creditors and other interested parties are encouraged to attend the meeting at 1:20 p.m. on Nov. 29 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Hall 293 2nd Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, 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 Essen opened bankruptcy proceedings against Gematec Color GmbH + Co. KG on Sept. 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gematec Color GmbH + Co. KG Erdbrueggenstr. 68 45889 Gelsenkirchen, Germany Ingrid Groetzbach, Manager Gruenstr. 15 45889 Gelsenkirchen, Germany The administrator can be contacted at: Dr. Frank Nikolaus Alfredstr. 108-112 45131 Essen, Germany Tel: 87 90 40 GFD GESELLSCHAFT: Claims Registration Ends November 14 ------------------------------------------------------ Creditors of GfD Gesellschaft fuer Dammtechnik GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Georg Welslau. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 GfD Gesellschaft fuer Dammtechnik GmbH on Sept. 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: GfD Gesellschaft fuer Dammtechnik GmbH Industriestr. 9 32469 Petershagen, Germany Attn: Christiana Voelkening, Manager Ostring 32 32469 Petershagen, Germany The administrator can be contacted at: Georg Welslau Bismarckstr. 43 32427 Minden, Germany HORNBACH: Moody's Affirms Ratings on Good Operating Performance --------------------------------------------------------------- Moody's Investors Service affirmed Hornbach's existing Ba2 Corporate Family Rating and the Ba3 senior unsecured rating on the EUR250 million notes due in 2014. The rating action reflects the company's good operating performance year to date and Moody's expectation that financial leverage should continue to improve going forward. Hornbach's Corporate Family Rating, however, remains at the low end its rating category, primarily reflecting a mix of solid business characteristics, including good potential for international growth, offset by credit metrics, which continue to lag the current rating category, and its exposure to the continuing difficult retail market condition in Germany. The rating action takes into account that Hornbach's cash flows have temporarily benefited from a lower than expected capital expenditure program year to date, primarily due to a postponement of new store openings into the next financial year, however, Moody's expects expenditures to roll-over into future years. As a result there is low expectation of any substantial reduction in the absolute amount of lease adjusted debt. A strengthening of Hornbach's credit metrics and rating positioning is therefore dependant upon a sustained recovery in operating results, in particular further improvements in operating margins. The stable outlook reflects Moody's expectation that Hornbach's business model should provide a good platform for the company to deliver like-for-like sales growth at least in line with the German DIY sector average, Hornbach's 2006/2007 margins should also partially recover from the dilution experienced in 2005. Ratings affirmed: * Hornbach's Corporate Family Rating of Ba2; and * Senior Unsecured rating on the EUR250 million notes due in 2014 of Ba3. Headquartered in Landau/Pfalz, in Germany, Hornbach is the fourth largest DIY retailer in Germany and operates 89 stores in the domestic market and other 32 across Europe. For the six month period ended August 2006 the Group generated revenues of EUR1.3 billion and EBITDA of EUR119.5 million. KABEL DEUTSCHLAND: Fitch Rates Exchange Notes at BB- ---------------------------------------------------- Fitch Ratings assigned ratings to Kabel Deutschland GmbH's exchange notes due July 1, 2014, issued under its recent exchange offer: -- EUR denominated 10.75% common code 026810361 and ISIN XS0268103610: BB-; and -- US$ denominated 10.625% CUSIP48282A AB1, common code US48282AAB17 and ISIN 026839599: BB- The other ratings of the KDG group are unchanged - Kabel Deutschland Vertrieb und Service GmbH & Co., are Issuer Default BB- and BB+ for its EUR1.35 billion senior secured bank facilities. The existing notes' ratings are at BB-. The exchange offer gave investors the opportunity to exchange KDG's existing EUR denominated 10.75% and USD denominated 10.625% senior notes. The exchange notes are identical in all material respects to the existing notes, except that the exchange notes have been registered with the U.S. Securities and Exchange Commission. Fitch notes in particular that the exchange notes benefit from the same security and guarantee structure as the existing notes, namely a second-ranking pledge of the limited partnership interests in principal operating subsidiary, KDS, a second priority pledge of the shares in Kabel Deutschland Verwaltungs GmbH, and a subordinated guarantee from KDS. MAX-BAU: Deadline for Claims Registration Slated November 14 ------------------------------------------------------------ Creditors of MAX-Bau GmbH have until Nov. 14 to register their claims with court-appointed provisional administrator Volkhard Frenzel. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 12 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Leipzig, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Leipzig opened bankruptcy proceedings against MAX-Bau GmbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MAX-Bau GmbH Attn: Hans-Joerg Nussbaumer, Manager Genossenschaftsweg 11 04808 Kuehren-Burkartshain, Germany The administrator can be contacted at: Dr. Volkhard Frenzel Magdeburger Str. 23 06112 Halle, Germany PERMO VERTRIEBS: Claims Registration Ends November 13 ----------------------------------------------------- Creditors of Permo Vertriebs GmbH have until Nov. 13 to register their claims with court-appointed provisional administrator Jochen Sedlitz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 5 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goeppingen Hall 0.24 Ground Floor Pfarrstrasse 25 73033 Goeppingen, 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 Goeppingen opened bankruptcy proceedings against Permo Vertriebs GmbH on Sept. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Permo Vertriebs GmbH Attn: Juergen Widmann, Manager Autohof 30 73037 Goeppingen, Germany The administrator can be contacted at: Jochen Sedlitz Wilhelmstr. 12 70182 Stuttgart, Germany Tel: 0711/16424-0 Fax: 0711/1642424 STOELZEL BAUGESELLSCHAFT: Claims Registration Ends November 13 -------------------------------------------------------------- Creditors of Stoelzel Baugesellschaft mbH have until Nov. 13 to register their claims with court-appointed provisional administrator Siegfried Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 14 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fuerth Room 3 Ground Floor Office Building Baumenstrasse 32 Fuerth, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Fuerth opened bankruptcy proceedings against Stoelzel Baugesellschaft mbH on Sept. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Stoelzel Baugesellschaft mbH Kraftsteinstr. 29 90556 Cadolzburg, Germany The administrator can be contacted at: Dr. Siegfried Beck Stahlstr. 17 90411 Nuernberg, Germany Tel: 0911/9512850 Fax: 0911/95128510 UNTIEDT UND SYRI: Claims Registration Ends November 15 ------------------------------------------------------ Creditors of Untiedt und Syri GmbH have until Nov. 15 to register their claims with court-appointed provisional administrator Gitta Werner. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 6 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mayen Hall 17 St. Veit-Road 38 56727 Mayen, 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 Mayen opened bankruptcy proceedings against Untiedt und Syri GmbH on Sept. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Untiedt und Syri GmbH Spitalsgraben 10 56218 Muelheim-Karlich, Germany Attn: Hermann Syri, Manager Dierdorfer Str. 80 56566 Neuwied, Germany The administrator can be contacted at: Dr. Gitta Werner Bahnhofstr. 34 56626 Andernach, Germany Tel: 02632/4969810 Fax: 02632/4969811 E-mail: info@kanzlei-werner.info =========== G R E E C E =========== BANK OF CYPRUS: Earns EUR225,726 for First Nine Months 2006 ----------------------------------------------------------- Bank of Cyprus Group released its consolidated financial results for the nine months and third quarter ended Sept. 30, 2006. The group posted EUR225,726 in net profit against EUR1.2 million in revenues for the first nine months of 2006, compared with EUR87,386 in net profit against EUR1 million in revenues for the same period in 2005. The group posted EUR78,301 in net profit against EUR441,634 in revenues for the third quarter of 2006, compared with EUR33,093 in net profit against EUR121,489 in revenues for the same period in 2005. About Bank of Cyprus Headquartered in Nicosia, Cyprus, Bank of Cyprus -- http://www.bankofcyprus.com/-- offers a wide range of financial products and services, which include banking services in Cyprus, Greece, United Kingdom, Australia and Channel Islands, finance, leasing, factoring, brokerage, fund management, general and life insurance services in Cyprus and Greece, and investment banking services in Cyprus. * * * As reported in the Troubled Company Reporter-Europe on July 25, Fitch Ratings affirmed Bank of Cyprus's Issuer Default rating at A- and removed it from Rating Watch Negative. A Stable Outlook is assigned. Its other ratings are affirmed at Support 2, Short-term F2 and Individual C/D. The rating actions follow the bank's announcement to abandon its public offer to acquire a 100% stake in Emporiki Bank of Greece. The ratings were placed on RWN because of the negative impact that an eventual acquisition of Emporiki would have had on BOC's regulatory capital ratios as well as the integration risks involved in the operation. BANK OF CYPRUS: Moody's Changes D+ FSR Outlook to Positive ---------------------------------------------------------- Moody's Investors Service changed to positive from stable the outlooks for the Baa1 foreign currency long-term deposit rating and D+ financial strength rating assigned to Bank of Cyprus Public Company Ltd. Also changed to positive from stable, are the outlooks for BOC's Baa1 foreign currency senior debt and Baa2 foreign currency subordinated debt ratings. At the same time, Moody's affirmed the Prime-2 for both foreign currency short-term deposits and for commercial paper. According to Moody's, this rating action reflects the ongoing enhancement of BOC's financial fundamentals over recent financial quarters. Following a few years of poor financial performance, primarily due to the problems faced by its operations in Cyprus, BOC has witnessed a significant improvement in its financial metrics, arising from management's actions to reinvigorate the franchise and to restore the bank's financial condition. Thus, asset quality has improved significantly during 2006 despite the introduction of stricter regulatory criteria for measuring loan performance since January 2006. Accordingly, as a result of: -- higher problem loan recoveries and write-offs; -- reduction in the inflow of new problem loans; and -- loan portfolio growth, the bank's ratio of non-performing loans to gross loans declined to 6.6% in September 2006 (down from a comparable ratio of 8.6% in March 2006), while the provisioning coverage for problem loans increased to 60% in September 2006 (up from 50% in December 2005). Although these trends are viewed positively, Moody's cautions that BOC's main indicators are weaker than those of similarly- rated banks in Europe, while the current regulatory requirement of not classifying overdue loans irrespective of performance, in the case that they are fully covered by tangible collateral, continues to qualify these ratios. According to Moody's, in tandem with improving asset quality, BOC's overall equity position has been strengthened (with its ratio of equity to assets increasing to 6.3% in September 2006), boosted by a rights issue during the last year and benefiting from an improving internal capital-generating capability. More importantly, Moody's notes that the bank's economic capital position has recovered significantly, supported by enhanced provisioning coverage for problem loans and a sharp reduction in uncovered pension liabilities. Hence, with the level of non- provided problems loans falling to 25% of equity in September 2006, the bank's ratio of adjusted equity to assets jumped to 4.8% in September 2006 (up from 3.7% in December 2005). Although the bank's enhanced capitalization is viewed favorably, Moody's feels that a higher level of equity position and/or stronger problem loan provisioning coverage would be more appropriate given the bank's overseas expansion plans -- primarily through branches in Greece but also in light of future plans for Russia and Romania. Moody's also notes the bank's main profitability indicators have been increasing, supported by wider interest margins, higher fee income, contained operating expenses and declining loan loss provisioning costs. The rating agency believes that the higher profitability trend may continue, underpinned by higher business volumes in the bank's domestic operations, the maturing of the branch network in Greece and lower loan loss provisioning requirements. The positive outlook is also based on BOC's positive franchise dynamics, characterized by a dominant position in its domicile market and an increasingly valuable franchise in Greece. A more focused strategy in its domestic operations, coupled with better execution, is yielding market share gains in the retail lending business at the expense of the country's credit cooperatives, reinforcing an already dominant, largely unthreatened market position. The overall franchise is complemented by the growing operations in Greece, which enhance the group's key financial metrics and lead to higher risk and revenue diversification. Furthermore, the ongoing maturing of a relatively young branch network is expected to lead to greater business volumes and better operational efficiencies that could boost the group's profitability, though Moody's cautions that the credit risk resilience of the operations remains untested. In conclusion, Moody's points out that an upgrade of BOC's ratings will be dependent on: -- further improvements in asset quality in tandem with the adoption of stricter regulatory criteria for classifying problem loans in order to bring them in line with international best practice; -- a continued upward trend in profitability; and -- a higher adjusted equity position and/or better provisioning coverage. Bank of Cyprus Public Company Ltd. is headquartered in Nicosia, Cyprus, and had total assets of CYP14.0 billion (EUR24.3 billion) as at end-September 2006. HELLENIC BANK: Moody's Changes D FSR Outlook to Stable ------------------------------------------------------ Moody's Investors Service changed to stable from negative the outlook for the D Financial Strength Rating assigned to Hellenic Bank Public Company Limited Cyprus. At the same time, Moody's has affirmed the bank's Baa2 long-term foreign currency debt and deposit ratings and the Prime-2 short-term foreign currency deposit and commercial paper ratings, with stable outlooks. The bank's FSR has been on negative outlook since August 2005. According to Moody's, the change to stable from negative in the FSR outlook reflects the ongoing improvement in Hellenic Bank's main financial fundamentals. The bank's D FSR continues to capture its well-established franchise in its domicile, although it remains constrained by relatively moderate -- though improving -- financial measures as regards asset quality, earning power and capitalization. Moody's notes that the bank, following a phase of weak financial performance, underwent an extensive top management change in 2005. To arrest a weakening financial performance, the new management has launched a major restructuring program aiming to improve the bank's financial condition, revive the loss-making operations in Greece, and enhance the overall competitiveness of the group. Recent data suggest that management is making inroads towards putting the bank on a more sound footing. Specifically, although Hellenic Bank's credit portfolio quality continues to suffer from a high level of delinquencies, recent indications suggest that the worst could be over and that credit quality is on an improving trend. June 2006 results showed the growth of non-performing loans falling to zero and the ratio of non-performing loans to gross loans improving to 13.7%, compared to a high 14.9% a quarter earlier. Furthermore, increased loan loss provisions resulted in better provisioning coverage (with loan-loss reserves covering 61% of non-performing loans, up from 58% a year earlier) and hence placing a lower level of equity at risk (with the ratio of non-provided non-performing loans to equity dropping to 50% in June 2006, compared to 68% a year earlier). Regarding profitability, Moody's adds that the bank returned to surplus in FY2005, following three consecutive years of net losses due to a very heavy provisioning burden. Furthermore, June 2006 results backed the improving profitability trends, with the losses in the Greek operations being significantly reduced. Going forward, Hellenic Bank is faced with a number of challenges, including: -- to further improve its credit portfolio quality leading to lower problematic exposures and, hence, reduced credit costs; -- to address its high cost structure which pressures its earning power; and -- to increase its core equity position, by bolstering its loan loss reserves and/or to increase its equity levels. Any success relating to these major challenges that could enhance overall the bank's financial fundamentals would result in positive pressure being exerted on its FSR. In affirming the bank's Baa2/Prime-2 foreign currency debt and deposit ratings, Moody's notes that these ratings are enhanced due to strong implicit external support. Although on a stand-alone basis the bank's debt and deposit ratings would be rated lower given its D FSR, these ratings are lifted higher due to Hellenic Bank's importance within its domestic banking system and the likelihood of support by the financial authorities if the bank were to face financial difficulties. Headquartered in Nicosia, Cyprus, Hellenic Bank Public Company Limited had total assets of CYP3.3 billion (EUR5.8 billion) as of June 2006. ============= I R E L A N D ============= ELAN CORP: To Issue US$500 Million Senior Notes Due 2013 -------------------------------------------------------- Elan Corp., plc, reveals its wholly owned subsidiaries, Elan Finance public limited company and Elan Finance Corp., intend to offer, subject to market conditions, US$500 million in aggregate principal amount of senior fixed rate notes due 2013 and senior floating rate notes due 2013. The notes will be offered in the United States, only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in accordance with Regulation S under the Securities Act. Following the offering, Elan expects to, through its wholly owned subsidiary Elan Capital Corp. Ltd., issue a redemption notice for the outstanding US$254 million aggregate principal amount of 6.5% Convertible Guaranteed Notes due 2008 issued by Elan Capital Corp. Ltd. and guaranteed by Elan. The net proceeds from the offering are expected to be used to repay any Convertible Notes not converted into equity of Elan (at a conversion price of US$7.42 per share) prior to the redemption date and the remaining net proceeds are expected to be used to repay a portion of the outstanding US$613 million aggregate principal amount of 7.25% Guaranteed Senior Notes due 2008 issued by Athena Neurosciences Finance, LLC, a wholly owned subsidiary of Elan, and guaranteed by Elan, in each case, within 90 days of consummation of the offering. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * As reported in the TCR-Europe on June 19, Moody's Investors Service revised the outlook on the ratings of Elan to stable from negative. At the same time, Moody's affirmed Elan's ratings, including the B3 corporate family rating. These rating actions follow the FDA decision to approve Tysabri for resumed marketing in the U.S. The stable outlook reflects Moody's current assumption that with a reasonably successful Tysabri re-launch, Elan is more likely to meet its 2008 debt maturities with a combination of internal funds and refinancing in the event of a shortfall. Moody's expects that the market acceptance of Tysabri will be a critical factor driving any future changes in Elan's credit rating. Ratings affirmed: Elan Corporation, plc -- B3 corporate family rating Elan Finance plc -- B3 fixed-rate senior notes of US$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) -- B3 floating rate senior notes of US$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) Athena Neurosciences Finance, LLC -- B3 senior notes of US$613 million due 2008 (guaranteed by Elan Corporation, plc and subsidiaries) ========= I T A L Y ========= FREESCALE SEMICONDUCTOR: Gets Requisite Consents on 6.875% Notes ---------------------------------------------------------------- Freescale Semiconductor Inc. disclosed that, as of 5:00 p.m., Eastern Time, on Nov. 3, 2006, it had received tenders and consents from holders of US$349,829,000 in aggregate principal amount of its 6.875% senior notes due 2011, representing 99.951% of the outstanding 2011 notes, and from holders of US$499,875,000 in aggregate principal amount of the its 7.125% senior notes due 2014, representing 99.975% of the outstanding 2014 notes. As a result of the receipt of the requisite consents, Freescale intends to enter into a supplemental indenture with the trustee effecting the proposed amendments to the indenture governing the notes on Nov. 6, 2006. The proposed amendments, however, will become operative only when the validly tendered notes are accepted for payment by Freescale pursuant to the terms of the tender offers and consent solicitations. In accordance with the terms of the tender offers and consent solicitations, tendered notes may no longer be withdrawn and delivered consents may not be revoked, unless Freescale makes a material change to the terms of the tender offers or is otherwise required by law to permit withdrawal or revocation. Holders who have not yet tendered their notes may tender until 5:00 p.m., prevailing Eastern Time, on Nov. 21, 2006, unless extended or earlier terminated by Freescale. The tender offers are subject to the satisfaction of certain conditions, including the receipt of specified financing, the consummation of the merger pursuant to the previously announced Agreement and Plan of Merger, dated as of Sept. 15, 2006, by and among Freescale, Firestone Holdings LLC and Firestone Acquisition Corporation and certain other customary conditions. Freescale has engaged Credit Suisse Securities (USA) LLC and Citigroup Corporate and Investment Banking to act as dealer managers in connection with the tender offers and solicitation agents in connection with the consent solicitations. Any questions or requests for assistance may be directed to: Credit Suisse Securities (USA) LLC Tel: (800) 820-1653 (U.S. toll-free) (212) 325-7596 (collect) -- or -- Citigroup Corporate and Investment Banking Tel: (800) 558-3745 (U.S. toll-free) (212) 723-6106 (collect) D.F. King & Co., Inc. has been retained as Tender Agent and as Information Agent in connection with the tender offers and consent solicitations. Requests for additional copies of the Statement or any other document may be directed to: D.F. King & Co., Inc. 48 Wall Street, New York New York 10005 Tel: (800) 714-3312 (U.S. toll-free) About Freescale Freescale Semiconductor, Inc. -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries, including the Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Nov. 7, Moody's Investors Service assigned Freescale Semiconductor a corporate family rating of Ba3 and a speculative grade liquidity rating of SGL-1. A shareholder meeting has been scheduled for Nov. 13 to vote on the company's proposed acquisition, which is expected to close by the end of November 2006. In addition, Standard & Poor's Ratings Services kept its ratings, including the 'BB+' corporate credit rating, on Freescale Semiconductor Inc. on CreditWatch with negative implications, where they were placed on Sept. 11 following the company's announcement that it was considering a business transaction, later confirmed as a leveraged buyout. Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default Rating, senior unsecured notes, and senior unsecured bank credit facility to 'BB+' from 'BBB-' following the company's confirmation that it has entered into a definitive agreement to be purchased by a consortium of private equity firms for US$17.6 billion, the largest ever technology leveraged buy-out. ================== K A Z A K H S TA N ================== AGRO SERVICE: Almaty Court Opens Bankruptcy Proceedings ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region commenced bankruptcy proceedings against LLP Agro Service Alliance on Sept. 28. AGROZAN-2 LLP: Creditors Must File Claims by Dec. 3 --------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Agrozan-2 insolvent on Sept. 14. Creditors have until Dec. 3 to submit written proofs of claim to: Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan ALTYN CAPITAL: Proof of Claim Deadline Slated for Dec. 8 -------------------------------------------------------- LLP Financial Group Altyn Capital has declared insolvency. Creditors have until Dec. 8 to submit written proofs of claim to: LLP Altyn Capital Jambyl Kostanai District Kostanai Region Kazakhstan ASTANA-TECHNOPARK OJSC: Claims Registration Ends Dec. 6 ------------------------------------------------------- OJSC Astana-Technopark has declared insolvency. Creditors have until Dec. 6 to submit written proofs of claim to: OJSC Astana-Technopark Pushkin Str. 166/4 Sary-Arka District Astana, Kazakhstan ASYL NAN: Claims Filing Period Ends Dec. 8 ------------------------------------------ LLP Company Asyl Nan has declared insolvency. Creditors have until Dec. 8 to submit written proofs of claim to: LLP Asyl Nan 40 let Oktabrya Str. 1 Rudnyi Kostanai Region Kazakhstan BAIZAKTORGGAS LLP: Jambyl Court Starts Bankruptcy Procedure ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region commenced bankruptcy proceedings against LLP Baizaktorggas on Sept. 15. BAMI DENT: Creditors' Claims Due Dec. 3 --------------------------------------- LLP Stomatological Clinic Bami Dent has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Bami Dent Kasteev Str. 106a Almaty, Kazakhstan BLACK GOLD: Creditors Must File Claims by Dec. 3 ------------------------------------------------ LLP Black Gold Ltd. has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Black Gold Ltd. Micro District 1, 8-49 Almaty, Kazakhstan JAHAN-MATAL LLP: Proof of Claim Deadline Slated for Dec. 8 ---------------------------------------------------------- LLP Jahan-Matal has declared insolvency. Creditors have until Dec. 8 to submit written proofs of claim to: LLP Jahan-Matal Grigorenko Str. 8-1 Shymkent South Kazakhstan Region Kazakhstan RISOPERERABATYVAYUSHYI ZAVOD: Creditors' Claims Due Dec. 3 ---------------------------------------------------------- LLP Ushtobinskyi Rice Processing Factory Risopererabatyvayushyi Zavod has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Risopererabatyvayushyi Zavod Mayakovskyi Str. 3 Ushtobe Karatal District Almaty Region Kazakhstan SAMAL KURYLYS: Claims Registration Ends Dec. 3 ---------------------------------------------- LLP Samal Kurylys has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Samal Kurylys Dostyk Ave. 95a-22 Almaty, Kazakhstan SHYNGYZ-HAN LLP: Claims Filing Period Ends Dec. 3 ------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Shyngyz-Han insolvent on Sept. 14, 2005. Creditors have until Dec. 3 to submit written proofs of claim to: Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan SPEKTRUM-FLEX LLP: Claims Registration Ends Dec. 3 -------------------------------------------------- LLP Spektrum-Flex has declared insolvency. Creditors have until Dec. 3 to submit written proofs of claim to: LLP Spektrum-Flex Baitursynov Str. 9 Shymkent South Kazakhstan Region Kazakhstan STARS CLUB: Creditors Must File Claims by Dec. 8 ------------------------------------------------ LLP Stars Club Company has declared insolvency. Creditors have until Dec. 8 to submit written proofs of claim to: LLP Stars Club Company Jeltoksan Str. 171a Almaty, Kazakhstan TRANSSFERA: Proof of Claim Deadline Slated for Dec. 6 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Scientific-Engineering Rail Road Company Transsfera insolvent on Sept. 18 without the introduction of bankruptcy proceedings. Creditors have until Dec. 6 to submit written proofs of claim to: LLP Transsfera Sutushev Str. 58 Petropavlovsk North Kazkhstan Region Tel: 8 (3152) 46-46-26 Fax: 8 (3152) 46-35-83 URSERVICE CONSULT: Creditors' Claims Due Dec. 8 ----------------------------------------------- LLP Juridical Consulting Service Urservice Consult has declared insolvency. Creditors have until Dec. 8 to submit written proofs of claim to: LLP Urservice Consult JK Atameken Tashenov Str. 8 Astana, Kazakhstan =================== K Y R G Y Z S T A N =================== JHOLDAS GROUP: Creditors Must File Claims by Dec. 22 ---------------------------------------------------- The Branch of American Corporation The Jholdas Group Inc. has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: Almatinskaya Str. 4 Bishkek, Kyrgyzstan Tel: (+996 312) 43-26-79 NATIONAL ACADEMY: Public Auction Scheduled for Nov. 29 ------------------------------------------------------ The State Committee on State Property of the Kyrgyz Republic will auction the unfinished construction of National Academy of Science's engineering-laboratorial building 3 to the public at 10:00 a.m. on Nov. 29 at: Conference Hall of State Property of Kyrgyz Republic Room 221 Moskovskaya Str. 151 Bishkek, Kyrgyzstan The property is located at: Crossing of K.Akiev Street and Pushkin Street Bishkek, Kyrgyzstan The starting price is set at KGS1,545,750. Interested bidders have until 5:00 p.m. on Nov. 28 to deposit an amount equivalent to KGS154,575 to the settlement account of: The State Committee on State Property of the Kyrgyz Republic Pervomaisky ROK-2, No. 8534172080101001/202802429 OJSC Settlement and Saving Company Bishkeksky Branch Participants may submit their bids and necessary documents to: The State Committee on State Property of the Kyrgyz Republic Room 221 Moskovskaya Str. 151 720002 Bishkek, Kyrgyzstan The winner of the auction will pay 7% from the selling price of the object. Inquiries can be addressed to (+996 312) 21-67-24. =================== L U X E M B O U R G =================== NORTEL NETWORKS: Appoints Dr. Kristina M. Johnson to Board ---------------------------------------------------------- Nortel Networks Corporation reported that Dr. Kristina M. Johnson, dean of Duke University's Edmund T. Pratt, Jr., School of Engineering, has been appointed to the Company's Board of Directors, effective immediately. Dr. Johnson has been with Duke University since 1999. As dean of the Pratt School of Engineering, she oversees more than 1100 undergraduates, 440 graduate students and 120 tenure track and non-tenure track faculty. She joined Duke from the University of Colorado, where she served as a professor of Electrical and Computer Engineering from 1985-1999. Dr. Johnson has helped start several companies including ColorLink, Inc., and sits on several corporate Board of Directors including Mineral Technologies Inc., Boston Scientific Corporation, and AES Corporation. She also currently serves on the advisory boards of the Colorado School of Mines, the Georgia Institute of Technology School of Engineering, the Duke Childrens' Classic, and the Institute for Emerging Issues. Dr. Johnson received her B.S., M.S. (with distinction) and Ph.D. in electrical engineering from Stanford University. She completed a NATO post-doctoral fellowship at Trinity College in Dublin, Ireland, and was a Fulbright Fellow in 1991. Johnson has published more than 140 refereed papers and proceedings, holds forty-three patents, and has pioneered work in liquid crystal-on-silicon microdisplays, a marriage of LC electro-optic materials and VLSI technology. "I am pleased to announce Dean Johnson's appointment," said Harry Pearce, chairman of Nortel's Board of Directors. "Her insight and experience will greatly benefit Nortel and contribute to our focus on innovation and R&D effectiveness." Dr. Johnson has also been appointed to the Nortel Networks Limited Board of Directors. About Nortel Networks 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 Oct. 5, 2006, Moody's Investors Service upgraded its B3 Corporate Family Rating for Nortel Networks Corp. to B2. As reported in the Troubled Company Reporter on July 10, 2006, 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). 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. 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 $2 billion notes. S&P said the outlook is stable. NORTEL NETWORKS: Posts US$99 Million Net Loss in Third Quarter -------------------------------------------------------------- Nortel Networks Corp. reported a US$99 million net loss in the third quarter of 2006, compared to a net loss of US$136 million in the third quarter of 2005 and net earnings of US$366 million in the second quarter of 2006. Revenues were US$2.96 billion for the third quarter of 2006 compared to US$2.52 billion for the third quarter of 2005 and US$2.74 billion for the second quarter of 2006. Net loss in the third quarter of 2006 included a benefit of around US$43 million related to the announced changes to the North American employee benefit plans, a gain of US$16 million on the sale of assets, a shareholder litigation expense of US$38 million reflecting a mark-to-market adjustment of the share portion of the global class action settlement and special charges of US$25 million for restructuring. The net loss in the third quarter of 2005 included special charges of US$39 million related to restructuring activities and a net charge of US$20 million related to the re-filing of the Company's tax returns as a result of the financial restatements. Net earnings in the second quarter of 2006 included a shareholder litigation recovery of US$510 million reflecting a mark-to-market adjustment of the share portion of the global class action settlement, special charges of US$45 million for restructuring and a loss of US$10 million on the sale of assets. Cash balance at the end of the third quarter of 2006 was US$2.60 billion, up from US$1.90 billion at the end of the second quarter of 2006. This increase in cash was primarily driven by cash received upon the closing of the offering of US$2 billion aggregate principal amount of senior notes, less cash used of US$1.3 billion to repay the US$1.3 billion one-year credit facility that was entered into in February 2006, partially offset by a cash outflow from operations of US$46 million. "I am pleased with our overall revenue growth and, in particular, in our focus areas of next generation mobility, enterprise and related services, and metro optical. I am also pleased with the 270 basis points operating margin improvement versus the third quarter of 2005. However, we should and will be moving faster. Pricing pressures and the speed at which our revenues are shifting to next generation, early cycle products is increasing our challenge to drive profitability improvements," said Mike Zafirovski, president and chief executive officer, Nortel. "The management team and I are resolute in achieving a globally competitive cost structure and we are accelerating and enhancing our Business Transformation and Lean Six Sigma programs to close this gap and achieving double digit operating margins in 2008. I believe recent steps of establishing the Microsoft alliance, divesting our UMTS access business, and increasingly shifting resources to lower cost centers are indicative of our resolve." Nine-Month 2006 Results For the first nine months of 2006, revenues were US$8.08 billion compared to US$7.53 billion for the same period in 2005. The Company reported net earnings for the first nine months of 2006 of US$100 million, compared to a net loss of US$273 million for the same period in 2005. Net earnings in the first nine months of 2006 included a shareholder litigation recovery of US$453 million reflecting mark-to-market adjustments of the share portion of the global class action settlement, special charges of US$75 million related to restructuring activities, a benefit of around US$43 million related to the announced changes to the North American employee benefit plans and a benefit of US$41 million related to the sale of assets. The first nine months of 2005 results included special charges of US$145 million related to restructuring activities and US$36 million of costs related to the sale of businesses and assets. Outlook Commenting on the Company's financial expectations, Peter Currie, executive vice president and chief financial officer, Nortel, said, "For the fourth quarter of 2006, we expect revenue growth in the mid to high single digits compared to the fourth quarter of 2005, gross margin to be between 38 and 39 as a percentage of revenue and spending to be around flat compared to the fourth quarter of 2005. Based on this fourth quarter outlook, we now expect mid to high single digit revenue growth for the full year 2006 compared to 2005, full year gross margin to be between 38 and 39 as a percentage of revenue, and we continue to expect operating expenses to be flat to up slightly from 2005." Share Consolidation Nortel also disclosed of the planned consolidation of the Company's common shares as approved at the Company's annual and special meeting of shareholders held on June 29, 2006. The consolidation is expected to be effective on December 1, 2006 at a ratio of one consolidated share for every 10 pre-consolidation shares, as approved by the Company's board of directors. The consolidation is expected to increase investors' visibility into the Company's profitability on a per share basis, reduce share transaction fees for investors and certain administrative costs for Nortel, and broaden interest to institutional investors and investment funds. "True shareholder value will be driven by ongoing progress and Company performance, but this step helps create a better foundation on which to build," said Peter Currie, Nortel's executive vice president and chief financial officer. Registered shareholders of the Company will receive instructions by mail on how to obtain a new share certificate representing their consolidated common shares. Upon implementation of the consolidation, the Company's 4.25 percent convertible senior notes due September 1, 2008 will be convertible by holders into common shares of Nortel Networks Corporation at a new conversion price of US$100 per common share. About Nortel Networks 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 Oct. 5, 2006, Moody's Investors Service upgraded its B3 Corporate Family Rating for Nortel Networks Corp. to B2. As reported in the Troubled Company Reporter on July 10, 2006, 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). 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. 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. ===================== N E T H E R L A N D S ===================== BURNS PHILP: Rank Group Declares Offer Unconditional ---------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Nov. 1, Rank Group Limited revealed that the only remaining condition in its offer period for shareholders of Burns Philp & Company Limited is the 90% acceptance condition. According to the TCR-AP, if this condition is met or waived, shareholders will be paid by the earlier of five business days of the offer becoming unconditional and Nov. 16, 2006. Those shareholders who have not accepted before Nov. 9, 2006, will enter the compulsory acquisition process. Under this process, it will take between five weeks and two months for payment to be made. In an update, Rank Group informs the New Zealand Stock Exchange that all Acceptance Instructions have now been validly processed or implemented. In its NZX statement dated Nov. 7, 2006, Rank Group discloses that it has relevant interests in more than 90% of the Burns Philp shares. Thus, the only remaining condition of the Offer has now been fulfilled. Accordingly, Rank Group declares that the Offer is unconditional. Rank Group says it will proceed to compulsory acquisition as soon as possible. The TCR-AP had also reported that the Foreign Investment Review Board in Australia and the Overseas Investment Office in New Zealand have approved the proposed offer of Burns Philp & Company Limited's major shareholder, Rank Group, for all of Burns Philp's shares it does not already hold. Questions regarding the takeover offer should be directed to the Rank Offer Information Line: * 1300-657-039 -- for callers within Australia, * 0800-555-039 -- for callers within New Zealand, or * +613-9415-4353 -- for callers from outside Australia and New Zealand About Rank Group Headquartered in London, United Kingdom, Rank Group PLC -- http://www.rank.com/-- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. About Burns Philp Burns Philp & Company Limited -- http://www.burnsphilp.com/-- is an Australian based company involved in the production and distribution of food ingredients and consumer branded food, beverage and related products. The Group operates internationally with products including snack foods, breakfast cereals and meal components. Burns Philp has a 20% interest in Goodman Fielder Limited. It maintains operations in The Netherlands through its Burns Philp Treasury (Europe) B.V. subsidiary. * * * The Troubled Company Reporter - Asia Pacific reported on August 24, 2006, that Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on Burns Philp on CreditWatch with negative implications after the company announced that its major shareholder, Rank Group Ltd., proposed to make an offer for all Burns Philp shares that it does not already hold. Rank Group currently owns 57.6% of Burns Philp. BURNS PHILP: S&P Cuts & Withdraws Rating on Rank Group Purchase --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Burns, Philp & Co. Ltd. to 'B/Developing' from 'BB-/Watch Neg' and subsequently withdrew the rating, following the Rank Group's acquisition of more than 90% of Burns Philp's ordinary shares as of Nov. 7. The privately owned Rank Group is expected to move to full ownership of Burns Philp soon. The withdrawal of the rating reflects heightened uncertainty over the future of Burns Philp and its financial policy going forward. Moreover, the lack of information available to Standard & Poor's about the Rank Group means it is unable to maintain a credit rating on Burns Philp. While Burns Philp is under the full ownership and control of the Rank Group, Standard & Poor's would not separate the credit quality of the two companies and, therefore, takes a consolidated credit view of the group. GLOBAL POWER: Hires AlixPartners LLC as Claims & Balloting Agent ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Global Power Equipment Group Inc. and its debtor-affiliates permission to employ AlixPartners LLC, as its noticing, claims and balloting agent. AlixPartners is expected to: a) prepare and serve required notices in these chapter 11 cases, including: -- notice of the commencement of these chapter 11 cases and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code. -- notice of claims bar date; -- notice of objections to claims; -- notice of any hearings on a disclosure statement and confirmation of a plan of reorganization; -- other miscellaneous notices to any entities as the Debtor of the Bankruptcy Court may deem necessary or appropriate for an orderly administration of these chapter 11 cases; and -- the publication of required notices, as necessary. b) file with the clerk, within 5-days after the mailing of a particular notice, with the clerk's office a certificate of affidavit of service that includes a copy of the notice involved, a list of persons to whom the notice was mailed, and the date and manner of mailing; c) assist the Debtor in the preparation and filing of the schedules of assets and liabilities and statement of financial affairs; d) maintain copies of all proofs of claim and proofs of interest filed; e) maintain official claims registers, including, among other things, these information for each proof of claim or proof of interest: -- name and address of the claimant and any agent thereof; -- date received; -- claim number assigned; and -- asserted amount and classification of the claim; f) create and administer a claims database; g) implement necessary security measure to ensure the completeness and integrity of the claims register; h) transmit to the clerk's office a copy of the claims register on a monthly basis or, in the alternative, make available the proof of claim docket online to the clerk's office via the claims manager claims system; i) maintain an up to date mailing list for all entities that have filed a proofs of claim or interest, which list shall be available upon request of a party in interest or the clerk's office; j) provide access to the public for examination of copies of the proofs of claim or interest without charge during regular business hours; k) record all transfers of claims pursuant to the Bankruptcy Rule 3001(e) and provide notice of such transfers as required by the Bankruptcy Rule 3001(e); l) assist the Debtors in the reconciliation and resolution of claims; m) comply with applicable federal, state, municipal, and local statutes, ordinances, rules, regulations, orders and other requirements; n) provide temporary employees to process claims, as necessary; o) provide balloting services in connection with the solicitation process for any chapter 11 plan to which a disclosure statement has been approved by the Court; p) provide other claims processing, noticing, and related administrative services as may be requested form time to time by the Debtors; and q) promptly comply with further conditions and requirements as the clerk's office of the Court may at any time prescribe. The Debtor's application did not disclose of the firm's compensation rates. Meade A. Monger, Esq., firm's managing director, assured the Court that his firm does not hold any interest adverse and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Monger can be reached at: Meade A. Monger, Esq. Managing Director AlixPartners LLC 2100 McKinney Avenue, Suite 800 Dallas, TX 75201 Tel: (214) 647-7500 Fax: (214) 647-7501 http://www.alixpartners.com/ Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. KONINKLIJKE AHOLD: Walks Away From Merger Talks with Delhaize ------------------------------------------------------------- Koninklijke Ahold N.V. has abandoned plans to merge with Belgian food retailer Delhaize Group, The Financial Times reports citing sources privy to the matter. According to the report, talks between the parties have stopped with no plans to restart the process, although sources did not rule out a change in circumstances. The parties ceased talks before Ahold revealed plans to sell its U.S. Foodservice (USF) unit, a move which lawyers and analysts had considered vital to avoid regulatory problems should the merger materialize, FT relates. Unnamed sources, however, told FT that USF's sale and the divestment of 10% of Ahold's "non- core" supermarkets in Portugal, Poland, Slovakia and the U.S., were unrelated to the merger talks or to pressure from shareholders seeking the company's breakup. Under the merger proposal, Ahold and Delhaize would form separate U.S. and European retail units, with the Belgian firm running the U.S. business and Ahold operating the European arm, under a common holding company. In a TCR-Europe report on Nov. 8, Ahold said it would divest its U.S. Foodservice unit and focus on core retail businesses in the United States and Europe, the continued roll-out of value repositioning programs, and the reduction of operating costs by EUR500 million by end 2009. About Delhaize Headquartered in Brussels, Belgium, Delhaize Group -- http://www.delhaizegroup.com/-- retails food in nine countries on three continents: North America, Europe and Asia. As of December 31, 2005, Delhaize Group's sales network, which includes Company-operated, affiliated and franchised stores, consisted of 2,636 stores; store formats are primarily supermarkets. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe and Asia. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. =========== R U S S I A =========== ABK CJSC: Bankruptcy Hearing Slated for January 22 -------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy Autonomous Region will convene on Jan. 22, 2007, to hear the bankruptcy supervision procedure on CJSC Abk. The case is docketed under Case No. A-75-7946/2006. The Temporary Insolvency Manager is: R. Shafikov Apartment 93 Druzhby Narodov Str. 31 Nizhnevartovsk Khanty-Mansiyskiy Autonomous Region 628624 Ekaterinburg 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: CJSC Abk Territory Of ATP-9 Promzona Raduzhnyj 628463 Khanty-Mansiyskiy Autonomous Region-Yugra Russia ANANYEVSKOYE CJSC: Court Names A. Rubashanov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. A. Rubashanov as Insolvency Manager for CJSC Ananyevskoye. He can be reached at: A. Rubashanov Post User Box 841 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-23768/05-B. The Debtor can be reached at: CJSC Ananyevskoye Ananyevka Kulundinskiy Region Altay Region Russia CHISTOPOLSKIY SHIP-MECHANICAL: Court Hearing Slated for Jan. 18 --------------------------------------------------------------- The Arbitration Court of Tatarstan Republic will convene on Jan. 18, 2007, to hear the bankruptcy supervision procedure on CJSC Chistopolskiy Ship-Mechanical Factory. The case is docketed under Case No. A65-15914/2006-SG4-39. The Temporary Insolvency Manager is: I. Khabibullin Post User Box 24 Kazan 420021 Tatarstan Republic Russia The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: CJSC Chistopolskiy Ship-Mechanical Factory Pionerskaya Str. 1 Chistopol 422983 Tatarstan Republic Russia FIRST SIBERIAN: Court Names N. Natarov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Novosibirsk Region appointed Mr. N. Natarov as Insolvency Manager for CJSC First Siberian Timber Company. He can be reached at: N. Natarov Post User Box 251 630048 Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-15651/06-29/297. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC First Siberian Timber Company Dzerzhinskogo Pr. 26 630015 Novosibirsk Russia FURNITURE FACTORY: Court Names A. Rubashanov to Manage Assets ------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. A. Rubashanov as Insolvency Manager for OJSC Furniture Factory. He can be reached at: A. Rubashanov Post User Box 841 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-10898/06-B. The Debtor can be reached at: OJSC Furniture Factory Kamen-na-Obi Altay Region Russia KUYBYSHEVSKIE LIQUEUR-VODKA: Court Hearing Slated for Dec. 25 ------------------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 11:00 a.m. on Dec. 25 to hear the bankruptcy supervision procedure on OJSC Kuybyshevskie Liqueur-Vodka Products. The case is docketed under Case No. A45-14486/06-10/303. The Temporary Insolvency Manager is: D. Sandrakov Shishkova Str. 2 Kuybyshev 632383 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: D. Sandrakov Shishkova Str. 2 Kuybyshev 632383 Novosibirsk Region Russia LYULPANSKIY TIMBER: Court Names V. Pomazkin to Manage Assets ------------------------------------------------------------ The Arbitration Court of Mariy El Republic appointed Mr. V. Pomazkin as Insolvency Manager for CJSC Lyulpanskiy Timber Industry Combine. He can be reached at: V. Pomazkin Post User Box 54 Yoshkar-Ola 424003 Mariy El Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-38-1350-11/215-2004. The Debtor can be reached at: CJSC Lyulpanskiy Timber Industry Combine Mekhanizatorov Str. 1 Lyulpany Medvedevskiy Region Mariy El Republic Russia OB'-POLYMER CJSC: Asset Sale Slated for November 21 --------------------------------------------------- LLC Financial and Lawful Consultant, the bidding organizer for CJSC Ob'-Polymer, opened a public auction for the company's properties at 11:00 a.m. on Nov. 21 at: LLC Financial and Lawful Consultant 6th floor Krasina Str. 7a Tyumen Region Russia The company has set a RUR655,640 starting price for the auctioned assets. To participate, bidders have until 11:00 a.m. on Nov. 20 to deposit an amount equivalent to 20% of the starting price to: CJSC Ob'-Polymer Settlement Account 40702810000160000165 in Branch OJSC Khanty-Mansiyskiy Bank Correspondent Account 30101810100000000740 BIK 047162740 Bidding documents must be submitted to: LLC Financial and Lawful Consultant 6th floor Krasina Str. 7a Tyumen Region Russia The Debtor can be reached at: CJSC Ob'-Polymer Lazareva Str. 11 Nyagan Khanty-Mansiyskiy Autonomous Region-Yugra 628183 Tyumen Region Russia ORGERSBANK: Fitch Places B- IDR on Rating Watch Positive -------------------------------------------------------- Fitch Ratings placed Russia's Orgersbank's ratings of Issuer Default B-, Short-term B, Support 5, and National Long-term BB+ on Rating Watch Positive. The bank's D Individual rating has been affirmed. The action follows the announcement that Nordea Bank AB's, a leading institution in the Nordic region, will purchase a controlling stake in Orgres. Upon the completion of the transaction, Nordea will hold a 75.01% stake, with the remaining 24.99% being split between the three existing senior management shareholders and the European Bank for Reconstruction and Development. The transaction is expected to close during Q107 following regulatory approval. Once the transaction is completed, Orgres's IDR, Short-term, Support and National Long-term ratings will be revised to reflect the increased probability of support being forthcoming for Orgres, in case of need, with the IDR likely to be upgraded to investment grade. Fitch also notes that the completion of this transaction should improve Orgres's capital and funding flexibility, as well as provide access to Nordea's product and risk management expertise. Orgres is a mid-sized Moscow based bank with a primary focus on the SME and retail sectors. The bank operates 37 branches and outlets in five regions, and is further expanding its regional presence, both organically and by acquisitions. Orgres also operates as a settlement center for the Russian regional interbank market, in particular due to its participation in the Interbank Clearing System. PRODUCTS-7 CJSC: Court Names B. Shatrov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. B. Shatrov as Insolvency Manager for CJSC Factory of Reinforced Concrete Products-7. He can be reached at: B. Shatrov Apartment 88 Sverdlova Str. 80 156005 Kostroma Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-51775/05-71-92 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Factory of Reinforced Concrete Products-7 Moscow Region Russia SIBERIAN FACTORY: Court Names S. Grudyakov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Krasnoyarsk Region appointed Mr. S. Grudyakov as Insolvency Manager for LLC Siberian Factory of Reinforced-Concrete Goods. He can be reached at: S. Grudyakov Block 4 Sosnovyj Location 70 Kansk 663606 Krasnoyarsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-14817/2006. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: LLC Siberian Factory of Reinforced-Concrete Goods Post User Box 1 Nazarovo Krasnoyarsk Region Russia SPECIAL AUTO-TRANSPORT: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Sakhalin Region commenced bankruptcy supervision procedure on Municipal Unitary Enterprise Special Auto-Transport. The case is docketed under Case No. A59-2090/06-S16. The Temporary Insolvency Manager is: M. Prokopchuk Post User Box 99 693013 Yuzhno-Sakhalinsk Region Russia The Arbitration Court of Sakhalin Region is located at: Kommunisticheskiy Pr. 24 693020 Yuzhno-Sakhalinsk Region Russia The Debtor can be reached at: M. Prokopchuk Post User Box 99 693013 Yuzhno-Sakhalinsk Region Russia UST-KATAEVSKIY OJSC: Court Names E. Babanov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Chelyabinsk Region appointed Mr. E. Babanov as Insolvency Manager for OJSC Ust-Kataevskiy City Diary. He can be reached at: E. Babanov Post User Box 12592 454080 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-15865/2006-52-160. The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Ust-Kataevskiy City Diary Ust-Katav Chelyabinsk Region Russia VNESHTORGBANK: Moody's Puts D- FSR to Austrian Branch ----------------------------------------------------- Moody's Investors Service assigned Baa2 long-term and Prime-2 short-term foreign currency bank deposit ratings and a D- Bank Financial Strength Rating to VTB Bank (Austria) AG (formerly known as Donau Bank). The outlook on all ratings is stable. The Baa2/P-2 deposit ratings are based on the support that Moody's expects would be forthcoming in case of need from its Moscow-based parent company, VTB (formerly Vneshtorgbank, Bank for Foreign Trade -- rated A1 for local currency debt and deposits, Baa2 for foreign currency debt and deposits, Prime-2 for short-term debt and D- for BFSR. This view is underpinned by VTB's explicit aim of reorganizing, consolidating and thereby more closely integrating its European subsidiaries, as well as VTBA's profitable positioning within the group through its niche strategy and the fact that it shares the same name and brand as its parent bank. The D- BFSR reflects the Austrian bank's relatively modest and evolving franchise, but also its satisfactory financial fundamentals. VTBA's core business focuses on structured trade finance, the structuring and syndication of loans for Russian and CIS clients, the management of emerging market bond portfolios and trading on the Russian and CIS markets. VTBA has benefited from its early entry into the Russian and CIS markets, in which it has built up a profound knowledge. In Moody's view, the bank therefore has good potential over time to strengthen its franchise and customer base through a closer integration into the VTB group. The BFSR also takes into account some significant business and financial risks relating to VTBA's business model. VTBA's financial fundamentals are characterized by a robust capitalization, good levels of profitability and efficiency and satisfactory asset quality. However, the bank will have to demonstrate in upcoming periods its ability to generate increasing revenues and satisfactory profitability and efficiency indicators, accompanied by a lower overall risk profile and a more meaningful and entrenched customer franchise. A materially increasing risk appetite or a weaker risk return profile would be seen as negative driving factors for the bank's rating. Moody's views the bank's ample base of retained earnings as an important source of funding and revenues for the bank and expects that VTBA's credit quality -- which is supported by its regulation and supervision by Austria's FMA (Finanzmarktaufsicht) -- will eventually benefit from broader, more firmly established funding sources. Based in Vienna, Austria, VTB Bank (Austria) AG had total assets of EUR1.4 billion and equity of EUR360 million as of Dec. 31, 2005 and recorded a net profit of EUR52 million. VOTALIFT-AUDIT CJSC: Court Names A. Kovalev to Manage Assets ------------------------------------------------------------ The Arbitration Court of Kostroma Region appointed Mr. A. Kovalev as Insolvency Manager for CJSC Votalift-Audit. He can be reached at: A. Kovalev Office 104 Shagova Str. 20 156000 Kostroma Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A31-3463/2006-12. The Debtor can be reached at: CJSC Votalift-Audit Mira Pr. 55 Kostroma Region Russia YAMAL-OIL-STROY-GAS: Bankruptcy Hearing Slated for November 14 -------------------------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy Autonomous Region will convene on Nov. 14 to hear the bankruptcy supervision procedure on LLC Yamal-Oil-Stroy-Gas (TIN 8901013024, OGRN 1028900508911). The case is docketed under Case No. A81-3837/2006. The Temporary Insolvency Manager is: A. Menshenin Post User Box 18 Angalskiy Mys Str. Salekhard 629003 Yamalo-Nenetskiy Autonomous Region Russia The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is located at: Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Region Russia The Debtor can be reached at: LLC Yamal-Oil-Stroy-Gas Matrosova Str. 36B Salekhard 629008 Yamalo-Nenetskiy Autonomous Region Russia ZAVYALOVSKAYA MINERAL: Court Names A. Generalov to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Altay Region appointed Mr. A. Generalov as Insolvency Manager for LLC Zavyalovskaya Mineral Water. He can be reached at: A. Generalov Post User Box 3923 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-9926/06-B. The Debtor can be reached at: LLC Zavyalovskaya Mineral Water Zavyalovo Zavyalovskiy Region Altay Region Russia * S&P Affirms B+ Rating on Russia's Leningrad Oblast ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its foreign currency issuer credit rating on Leningrad Oblast at 'B+' and national scale rating at 'ruA+' based on expectations of an improvement in the oblast's budgetary performance. The outlook is positive. "The ratings on the oblast, located in the northwest of The Russian Federation, are constrained by: the Leningrad Oblast's low revenue and expenditure flexibility and financial risk linked to growing debt guarantees," said Standard & Poor's credit analyst Pavel Kochanov. "Moreover, evolving inter- governmental relations and the need to upgrade and build new transport and housing infrastructure are also rating constraints." The ratings are supported, however, by the oblast's improving economy and its consistent fiscal policies, resulting in a moderate debt burden. "We expect that the oblast's rapidly growing economy will support continued operating surpluses and increased capital expenditures in the medium term, without any material weakening of the oblast's debt position," said Mr. Kochanov. "Future positive rating actions, in 2007, will depend on the oblast management's ability to sustain a operating surplus of at least 8%-10% of operating revenues and total debt to revenues of less than 30%, despite growing operating expenditure pressure." If the budgetary performance of the oblast deteriorates, or debt exceeds a manageable 30% of revenues, the outlook could be revised to stable. Standard & Poor's has also assigned its local currency rating of 'B+' to Leningrad Oblast. This follows Standard & Poor's decision to publish both local currency and foreign currency issuer credit ratings on Russian local and regional governments to meet increased investor interest in these ratings. ========= S P A I N ========= KONINKLIJKE AHOLD: Walks Away From Merger Talks with Delhaize ------------------------------------------------------------- Koninklijke Ahold N.V. has abandoned plans to merge with Belgian food retailer Delhaize Group, The Financial Times reports citing sources privy to the matter. According to the report, talks between the parties have stopped with no plans to restart the process, although sources did not rule out a change in circumstances. The parties ceased talks before Ahold revealed plans to sell its U.S. Foodservice (USF) unit, a move which lawyers and analysts had considered vital to avoid regulatory problems should the merger materialize, FT relates. Unnamed sources, however, told FT that USF's sale and the divestment of 10% of Ahold's "non- core" supermarkets in Portugal, Poland, Slovakia and the U.S., were unrelated to the merger talks or to pressure from shareholders seeking the company's breakup. Under the merger proposal, Ahold and Delhaize would form separate U.S. and European retail units, with the Belgian firm running the U.S. business and Ahold operating the European arm, under a common holding company. In a TCR-Europe report on Nov. 8, Ahold said it would divest its U.S. Foodservice unit and focus on core retail businesses in the United States and Europe, the continued roll-out of value repositioning programs, and the reduction of operating costs by EUR500 million by end 2009. About Delhaize Headquartered in Brussels, Belgium, Delhaize Group -- http://www.delhaizegroup.com/-- retails food in nine countries on three continents: North America, Europe and Asia. As of December 31, 2005, Delhaize Group's sales network, which includes Company-operated, affiliated and franchised stores, consisted of 2,636 stores; store formats are primarily supermarkets. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe and Asia. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. =========== T U R K E Y =========== GENERAL NUTRITION: Faces Overtime Wage Litigation in Kansas ----------------------------------------------------------- Centers and General Nutrition Corp., a wholly owned subsidiary of GNC Corp., faces a purported class action in the U.S. District Court for the District of Kansas over unpaid overtime wages, according to GNC Corp.'s Oct. 27, 2006 Form 10-Q filing with the U.S. Securities and Exchange Commission for the period ended Sept. 30, 2006. On Aug. 11, 2006, Michelle Most and Mark Kelso sued the company on behalf of themselves and all others similarly situated. The lawsuit purports to certify a nationwide class of GNC store managers and assistant managers and alleges that GNC failed to pay time and a half for working more than 40 hours per week. Counsel for the plaintiffs contends that Centers and GNC improperly applied fluctuating workweek calculations and procedures for docking pay for working less than 40 hours per week under a fluctuating workweek. The suit is "Most, et al. v. General Nutrition Centers, Inc., et al., Case No. 2:06-cv-02330-CM-GLR," filed in the U.S. District Court for the District of Kansas under Judge Carlos Murguia with referral to Judge Gerald L. Rushfelt. Representing the plaintiffs are: (1) Michael F. Brady of Law Offices of Michael F. Brady, 10901 Lowell Ave., Suite #280, Overland Park, KS 66210, US, Phone: 913-696-0925, Fax: 913-696-0468, E-mail: brady@mbradylaw.com and (2) Brendan J. Donelon of DONELON, P.C., 802 Broadway 7th Flr., Kansas City, MO 64105, Phone: 816-221-7100, Fax: 816-472-6805, E-mail: brendan@donelonpc.com Representing the defendants is Erin A. Webber of Littler Mendelson, P.C., 2300 Main, Suite #900, Kansas City, MO 64108, US, Phone: 816-448-3358, x3561, Fax: 816-817-0735, E-mail: ewebber@littler.com Headquartered in Pittsburgh, Pennsylvania, General Nutrition Centers, Inc. -- http://www.gnc.com/-- a wholly owned subsidiary of GNC Corp, is the largest global specialty retailer of nutritional products; including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products. GNC has more than 4,800 retail locations throughout the United States and franchise operations in 46 international markets including Turkey, Ukraine, Australia, Colombia, Singapore, among others. * * * As reported in the TCR-Europe on Nov. 8, Standard & Poor's Ratings Services placed its ratings on General Nutrition Centers Inc., including the 'B' corporate credit rating, on CreditWatch with developing implications. "The placement follows news that GNC is evaluating alternatives that include a possible sale of the company or an IPO," said Standard & Poor's credit analyst Jackie Oberoi. Standard & Poor's also assigned its 'CCC+' rating on Pittsburgh, Pa.-based GNC Parent Corporation's (a newly formed holding company that controls GNC) US$325 million payment-in-kind (PIK) notes, due 2011. The rating was placed on CreditWatch Developing. Given the expected use of proceeds from the PIK notes, the existing ratings on GNC's senior unsecured notes and bank facility may be raised. GENERAL NUTRITION: Moody's Junks Proposed US$325-Mln Note Issue --------------------------------------------------------------- Moody's Investors service assigned a Caa1 (LGD 5, 87%) rating to GNC Parent Corporation's proposed US$325 million note issue. GNC Parent Corp. ultimately owns General Nutrition Centers, Inc. Moody's also affirmed the secured bank loan rating and corporate family rating at Ba2 and the B2, respectively. Per Moody's loss given default methodology and the capital structure change, the senior notes and senior subordinated notes were upgraded to Ba3 and B3, respectively. Proceeds from the new debt principally will be used to retire its PIK preferred stock for US$149 million and to pay a US$190 million dividend. In conjunction with announcing the new holding company debt, the company also announced that it is exploring strategic alternatives such as a sale of the company or an initial public offering. Affirmation of the corporate family rating reflects that quantitative and qualitative debt reflects that credit risk remains consistent with a B2 rating, in spite of the higher leverage. Newly assigned rating: * US$325 million notes issued by GNC Parent Corp. at Caa1 (LGD 5, 87%) Ratings affirmed: * Senior secured bank loan at Ba2 (LGD 1, 6%); * Corporate family rating at B2; and * Probability of Default Rating at B2. Ratings upgraded: * US$150 million of 8.625% senior notes (2011) to Ba3 (LGD 3, 31%) from B1; and * US$215 million of 8.5% senior subordinate notes (2010) to B3 (LGD 4, 64%) from Caa1. GNC's corporate family rating of B2 balances the company's aggressive financial policy, weak credit metrics, and revenue vulnerability to new product introductions against certain qualitative aspects that have low investment grade or high non-investment characteristics. Weighing down the overall rating with B characteristics are the company's shareholder enhancement policy and credit metrics that have remained weak since the November 2003 leveraged buyout. The ongoing challenges in matching changes in consumer preferences for VMS products also constrain the ratings. The company's geographic diversification and the relative lack of cash flow seasonality have solidly investment grade scores, while the company's scale and widespread consumer recognition of the GNC name in the intensely competitive segment of vitamin, mineral, and nutritional supplement retailing have Ba scores. The stable rating outlook recognizes that the recent negative trends in sales and operating profit have turned positive, and that debt protection measures have progressed to levels that are appropriate for a B rated credit. The outlook also considers Moody's expectation that a material portion of future discretionary cash flow will be applied to balance sheet improvement. A permanent decline in cash balances or revolving credit facility availability that would result if free cash flow fell below break-even, a return to declining store-level operating performance, or an aggressive financial policy action would cause the ratings to be lowered. Given the sizable contribution to operating profit from franchise royalties, difficulties or closure of many franchisees also would negatively impact the ratings. Specifically, debt to EBITDA sustained above 6.5 times, EBIT to interest expense below 1 time, or break-even free cash flow to debt would cause ratings to be lowered. In the near term, a rating upgrade is unlikely. Ratings could eventually move upward if the company establishes a long-term track record of sales stability and improved margins, the system expands both from new store development (particularly in international markets) and existing store performance, and if financial flexibility were to sustainably strengthen such that EBIT coverage of interest expense approaches 2 times, leverage falls toward 5 times, and Free Cash to Debt rises to exceeds 5%. General Nutrition Centers, Inc., with headquarters in Pittsburgh, Pennsylvania, retails and manufactures vitamins, minerals, and nutritional supplements domestically and internationally through about 5850 company operated and franchised stores (including about 1200 store-within-a-store locations at Rite Aid drug stores). Revenue for the twelve months ending September 2006 approached US$1.5 billion. ============= U K R A I N E ============= AGROTORG LLC: Sumi Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Sumi Region commenced bankruptcy supervision procedure on LLC Agrotorg (code EDRPOU 23297221) on Aug. 23. The case is docketed under Case No. 8/417-06. The Temporary Insolvency Manager is: Yurij Falchenko Chervonoarmijska Str. 115/37 Ohtirka 42700 Sumi Region Ukraine The Economic Court of Sumi Region is located at: Shevchenko Avenue 18/1 40030 Sumi Region Ukraine The Debtor can be reached at: LLC Agrotorg Goncharenko Str. 38 Ohtirka 42700 Sumi Region Ukraine AZHVO LLC: Ivano-Frankivsk Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Economic Court of Ivano-Frankivsk Region commenced bankruptcy supervision procedure on LLC AZHVO (code EDRPOU 22199545). The case is docketed under Case No. B-6/216. The Temporary Insolvency Manager is: O. Shvets Galitska Str. 149/26 76000 Ivano-Frankivsk Region Ukraine The Economic Court of Ivano-Frankivsk Region is located at: Shevchenko Str. 16a 76000 Ivano-Frankivsk Region Ukraine The Debtor can be reached at: LLC Azhvo Zavadka, Stefanivska Str. 20 Kalush District 7732 Ivano-Frankivsk Region Ukraine ECOLOGICAL BUILDINGS: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Economic Court of Zhitomir Region commenced bankruptcy supervision procedure on CJSC Ecological Buildings Complex (code EDRPOU 31434346) on Oct. 5. The case is docketed under Case No. 7/166. The Temporary Insolvency Manager is: B. Petrichuk Berdichiv, Sverdlov Str. 57/63 Zhitomir Region Ukraine The Economic Court of Zhitomir Region is located at: Berdichivska Str. 25 Mala 10014 Zhitomir Region Ukraine The Debtor can be reached at: CJSC Ecological Buildings Complex Lenin Str. 76 Berdichiv 13300 Zhitomir Region Ukraine EUROSAIL 06-4: Fitch Gives BB Rating on GBP6.7-Mln Class E Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to Eurosail 06-4 Plc's GBP745 million-equivalent mortgage-backed floating-rate notes due 2024 and 2044: -- GBP-equivalent 234.67 million Class A1, due 2024: AAA; -- GBP-equivalent 171.35 million Class A2, due 2044: AAA; -- GBP-equivalent 216.79 million Class A3, due 2044: AAA; -- GBP-equivalent 35.01 million Class M, due 2044: AAA; -- GBP-equivalent 42.46 million Class B, due 2044: AA; -- GBP-equivalent 21.6 million Class C, due 2044: A; -- GBP-equivalent 16.39 million Class D1, due 2044: BBB; -- GBP-equivalent 6.7 million Class E, due 2044: BB; and -- GBP-equivalent 7.45 million Class DTc, due 2044: BBB. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a securitization of prime and near-prime residential mortgages originated and located in the U.K. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of Southern Pacific Mortgage Limited, GMAC-RFC, Preferred Mortgages Limited and the transaction's sound legal structure. Credit enhancement for the Class A notes is initially 16.9%, provided by the subordination of the Class M notes, the Class B notes, the Class C notes, the Class D1 notes, the Class E notes and an initial and target reserve fund of 0.5%. The Class DTc notes will also be issued and will be repaid solely by excess spread available in the transaction. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model, with structural stresses including various prepayment and interest rate scenarios. The cash-flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. EUROSAIL 2006-4NP: S&P Rates GBP6.7-Mln Class E Notes at BB ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the GBP745 million (equivalent) mortgage-backed floating-rate notes (and an overissuance of GBP7.45 million excess spread backed floating-rate notes) to be issued by Eurosail 2006-4NP PLC, a special purpose entity. The collateral comprises a pool of first-ranking mortgage loans (in England and Wales) and standard securities (in Scotland). The originators are Southern Pacific Mortgage Ltd., Preferred Mortgages Ltd., and GMAC-RFC Ltd. Eurosail 2006-4NP is the fourth transaction under the Eurosail program. The transaction features an interest rate cap agreement to hedge against rising LIBOR, a discount margin reserve to partially hedge against the risk associated with reduced rates of interest payable on discounted loans, and a bullet-cap reserve fund. Strong protection for the notes will be provided by internal subordination, a sequential payment structure, and three cash reserve funds. RATINGS LIST Eurosail 2006-4NP PLC GBP745 Million (Equivalent) Mortgage-Backed Floating-Rate Notes and an Overissuance of GBP7.45 Million Excess Spread Backed Floating-Rate Notes Prelim. Prelim. amount Class rating (Mil. equiv. GBP) ----- ------ ---------------- A1a AAA TBD A1b AAA TBD A1c AAA 234.675 A2a AAA TBD A2b AAA TBD A2c AAA 171.35 A3a AAA TBD A3b AAA TBD A3c AAA 216.795 M1a AAA TBD M1b AAA TBD M1c AAA 35.015 B1a AA TBD B1b AA TBD B1c AA 42.465 C1a A TBD C1b A TBD C1c A 21.605 D1a BBB TBD D1b BBB TBD D1c BBB 16.39 DTc BBB 7.45 E BB 6.705 Residual certificates NR N/A NR-Not rated. N/A-Not applicable. GENERAL NUTRITION: Faces Overtime Wage Litigation in Kansas ----------------------------------------------------------- Centers and General Nutrition Corp., a wholly owned subsidiary of GNC Corp., faces a purported class action in the U.S. District Court for the District of Kansas over unpaid overtime wages, according to GNC Corp.'s Oct. 27, 2006 Form 10-Q filing with the U.S. Securities and Exchange Commission for the period ended Sept. 30, 2006. On Aug. 11, 2006, Michelle Most and Mark Kelso sued the company on behalf of themselves and all others similarly situated. The lawsuit purports to certify a nationwide class of GNC store managers and assistant managers and alleges that GNC failed to pay time and a half for working more than 40 hours per week. Counsel for the plaintiffs contends that Centers and GNC improperly applied fluctuating workweek calculations and procedures for docking pay for working less than 40 hours per week under a fluctuating workweek. The suit is "Most, et al. v. General Nutrition Centers, Inc., et al., Case No. 2:06-cv-02330-CM-GLR," filed in the U.S. District Court for the District of Kansas under Judge Carlos Murguia with referral to Judge Gerald L. Rushfelt. Representing the plaintiffs are: (1) Michael F. Brady of Law Offices of Michael F. Brady, 10901 Lowell Ave., Suite #280, Overland Park, KS 66210, US, Phone: 913-696-0925, Fax: 913-696-0468, E-mail: brady@mbradylaw.com and (2) Brendan J. Donelon of DONELON, P.C., 802 Broadway 7th Flr., Kansas City, MO 64105, Phone: 816-221-7100, Fax: 816-472-6805, E-mail: brendan@donelonpc.com. Representing the defendants is Erin A. Webber of Littler Mendelson, P.C., 2300 Main, Suite #900, Kansas City, MO 64108, US, Phone: 816-448-3358, x3561, Fax: 816-817-0735, E-mail: ewebber@littler.com. Headquartered in Pittsburgh, Pennsylvania, General Nutrition Centers, Inc. -- http://www.gnc.com/-- a wholly owned subsidiary of GNC Corp, is the largest global specialty retailer of nutritional products; including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products. GNC has more than 4,800 retail locations throughout the United States and franchise operations in 46 international markets including Turkey, Ukraine, Australia, Colombia, Singapore, among others. * * * As reported in the TCR-Europe on Nov. 8, Standard & Poor's Ratings Services placed its ratings on General Nutrition Centers Inc., including the 'B' corporate credit rating, on CreditWatch with developing implications. "The placement follows news that GNC is evaluating alternatives that include a possible sale of the company or an IPO," said Standard & Poor's credit analyst Jackie Oberoi. Standard & Poor's also assigned its 'CCC+' rating on Pittsburgh, Pa.-based GNC Parent Corporation's (a newly formed holding company that controls GNC) US$325 million payment-in-kind (PIK) notes, due 2011. The rating was placed on CreditWatch Developing. Given the expected use of proceeds from the PIK notes, the existing ratings on GNC's senior unsecured notes and bank facility may be raised. GENERAL NUTRITION: Moody's Junks Proposed US$325-Mln Note Issue --------------------------------------------------------------- Moody's Investors service assigned a Caa1 (LGD 5, 87%) rating to GNC Parent Corporation's proposed US$325 million note issue. GNC Parent Corp. ultimately owns General Nutrition Centers, Inc. Moody's also affirmed the secured bank loan rating and corporate family rating at Ba2 and the B2, respectively. Per Moody's loss given default methodology and the capital structure change, the senior notes and senior subordinated notes were upgraded to Ba3 and B3, respectively. Proceeds from the new debt principally will be used to retire its PIK preferred stock for US$149 million and to pay a US$190 million dividend. In conjunction with announcing the new holding company debt, the company also announced that it is exploring strategic alternatives such as a sale of the company or an initial public offering. Affirmation of the corporate family rating reflects that quantitative and qualitative debt reflects that credit risk remains consistent with a B2 rating, in spite of the higher leverage. Newly assigned rating: * US$325 million notes issued by GNC Parent Corp. at Caa1 (LGD 5, 87%) Ratings affirmed: * Senior secured bank loan at Ba2 (LGD 1, 6%); * Corporate family rating at B2; and * Probability of Default Rating at B2. Ratings upgraded: * US$150 million of 8.625% senior notes (2011) to Ba3 (LGD 3, 31%) from B1; and * US$215 million of 8.5% senior subordinate notes (2010) to B3 (LGD 4, 64%) from Caa1. GNC's corporate family rating of B2 balances the company's aggressive financial policy, weak credit metrics, and revenue vulnerability to new product introductions against certain qualitative aspects that have low investment grade or high non-investment characteristics. Weighing down the overall rating with B characteristics are the company's shareholder enhancement policy and credit metrics that have remained weak since the November 2003 leveraged buyout. The ongoing challenges in matching changes in consumer preferences for VMS products also constrain the ratings. The company's geographic diversification and the relative lack of cash flow seasonality have solidly investment grade scores, while the company's scale and widespread consumer recognition of the GNC name in the intensely competitive segment of vitamin, mineral, and nutritional supplement retailing have Ba scores. The stable rating outlook recognizes that the recent negative trends in sales and operating profit have turned positive, and that debt protection measures have progressed to levels that are appropriate for a B rated credit. The outlook also considers Moody's expectation that a material portion of future discretionary cash flow will be applied to balance sheet improvement. A permanent decline in cash balances or revolving credit facility availability that would result if free cash flow fell below break-even, a return to declining store-level operating performance, or an aggressive financial policy action would cause the ratings to be lowered. Given the sizable contribution to operating profit from franchise royalties, difficulties or closure of many franchisees also would negatively impact the ratings. Specifically, debt to EBITDA sustained above 6.5 times, EBIT to interest expense below 1 time, or break-even free cash flow to debt would cause ratings to be lowered. In the near term, a rating upgrade is unlikely. Ratings could eventually move upward if the company establishes a long-term track record of sales stability and improved margins, the system expands both from new store development (particularly in international markets) and existing store performance, and if financial flexibility were to sustainably strengthen such that EBIT coverage of interest expense approaches 2 times, leverage falls toward 5 times, and Free Cash to Debt rises to exceeds 5%. General Nutrition Centers, Inc., with headquarters in Pittsburgh, Pennsylvania, retails and manufactures vitamins, minerals, and nutritional supplements domestically and internationally through about 5850 company operated and franchised stores (including about 1200 store-within-a-store locations at Rite Aid drug stores). Revenue for the twelve months ending September 2006 approached US$1.5 billion. INTERTAJP LLC: Court Names I. Yasnogor as Insolvency Manager ------------------------------------------------------------ The Economic Court of Dnipropetrovsk Region appointed Mr. I. Yasnogor as Liquidator/Insolvency Manager for LLC Intertajp (code EDRPOU 32547819). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 2. The case is docketed under Case No. B 29/251-06. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Intertajp Svetlov Str. 29/1 Dnipropetrovsk Region Ukraine RATE-INVEST LLC: Oleksandr Chechelnitskij to Liquidate Assets ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Oleksandr Chechelnitskij as Liquidator/Insolvency Manager for LLC Rate- Invest (code EDRPOU 31985756). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 27. The case is docketed under Case No. 24/619-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 Rate-Invest Boyova Str. 20 Kyiv Region Ukraine TEHSERVICE: Mikolaiv Court Starts Bankruptcy Supervision -------------------------------------------------------- The Economic Court of Mikolaiv Region commenced bankruptcy supervision procedure on Tehservice (code EDRPOU 312559105) on Sept. 13. The case is docketed under Case No. 2/194/06. The Temporary Insolvency Manager is: Mikola Derebchinskij Komsomolska Str. 3/323 Yuzhnoukrainsk 55001 Mikolaiv Region Ukraine The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: Tehservice Yuzhnoukrainsk 55000 Mikolaiv Region Ukraine ZIM OJSC: Donetsk Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on OJSC Zim (code EDRPOU 00292669). The case is docketed under Case No. 27/166 B. The Temporary Insolvency Manager is: T. Pashkova Kujbishev Str. 240/50 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: OJSC Zim Stanislavskij Str. 1 Mariupol 87502 Donetsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== 1ST RECRUITMENT: Appoints A. J. Clark to Liquidate Assets --------------------------------------------------------- A. J. Clark of Carter Clark was appointed Liquidator of 1st Recruitment Bedford Limited (formerly Buckland Transport Limited) on Oct. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: 1st Recruitment Bedford Limited The Moat Buckland Buntingford Hertfordshire SG9 0QB United Kingdom Tel: 01763 273 232 Fax: 01763 273 282 ACM SCAFFOLDING: Taps Joint Administrators from Unity Business -------------------------------------------------------------- Matthew Colin Bowker and Christopher Benjamin Barrett of Unity Business Services LLP were appointed joint administrators of ACM Scaffolding Ltd. (Company Number 04645695) on Oct. 27. The administrators can be reached at: Matthew Colin Bowker and Christopher Benjamin Barrett Unity Business Services LLP Clive House Clive Street Bolton Lancashire BL1 1ET United Kingdom Tel: 01204 395000 Fax: 01204 383999 E-mail: matthewbowker@ubsg.co.uk ACM Scaffolding Ltd. can be reached at: Albion Works Bridgeman Street Bolton Lancashire BL3 6BS United Kingdom Tel: 01204 533 334 Fax: 01204 366 824 AINSWORTH FINISHING: Taps Begbies Traynor as Administrators ----------------------------------------------------------- David Robert Acland and Andrew David Dick of Begbies Traynor were appointed joint administrators of Ainsworth Finishing Co. Ltd. (Company Number 04129517) on Oct. 30. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Ainsworth Finishing Co. Ltd. can be reached at: Ainsworth Mill Bury New Road Breightmet Bolton Lancashire BL2 6QL United Kingdom Tel: 01204 378 100 Fax: 01204 378 114 ALLEN DECORATORS: Nominates Liquidators from Abbott Fielding ------------------------------------------------------------ Nedim Ailyan and Hasan Mirza of Abbott Fielding were nominated Joint Liquidators of Allen Decorators Limited on Oct. 26 for the creditors' voluntary winding-up procedure. The company can be reached at: Allen Decorators Limited Rear of 129 Bridgnorth Road Wollaston Stourbridge West Midlands DY8 3NX United Kingdom Tel: 01384 394886 BARNETT FINANCIAL: Creditors Confirm Liquidator's Appointment ------------------------------------------------------------- Creditors of Barnett Financial Solutions Limited confirmed on Nov. 1 the appointment of Roderick Graham Butcher of Butcher Woods as the company's Liquidator. The company can be reached at: Barnett Financial Solutions Limited Silver End Business Park Brettell Lane Brierley Hill DY5 3LG United Kingdom Tel: 01384 70300 BENNY DEE: Kikis Kallis Leads Liquidation Procedure --------------------------------------------------- Kikis Kallis of Kallis & Co. was appointed Liquidator of Benny Dee (City) Ltd. (formerly Risecross Limited) on Aug. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: Benny Dee (City) Ltd. Osborn House 74 80 Middlesex Street Tower Hamlets London E1 7EZ United Kingdom Tel: 020 7377 9067 Fax: 020 7247 7728 C J EXECUTIVE: Names Anthony David Kent Liquidator -------------------------------------------------- Anthony David Kent of Maidment Judd was appointed Liquidator of C J Executive Cars Limited on Nov. 1 for the creditors' voluntary winding-up procedure. Headquartered in Luton, England, C J Executive Cars Limited -- http://www.cjexecutivecarsltd.com/-- is a chauffeur drive car hire company that operates a 24/7 service with account facilities for approved clients. COLLINS & AIKMAN: Court Allows Rejection of Westland Lease ---------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan authorized Collins & Aikman Corporation and its debtor- affiliates to reject the lease for certain premises at 1515 Newburgh Road, in Westland, Michigan, effective as of the earlier of: (a) Dec. 31, 2006; and (b) the date the Debtors surrender the premises under the Lease. The Debtors told the Court they will no longer need an unexpired lease associated with their plant in Westland, Michigan, as they are closing that plant. The Debtors said the Rejection Date will provide them sufficient time to wind down their operations at the plant and surrender the premises. InSite Westland, LLC, the landlord under the lease, has consented to the rejection. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of around 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Court Approves Settlement Pact with GECC ---------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan has approved a stipulation between Collins & Aikman Corporation, its debtor-affiliates and General Electric Capital Corporation. Pursuant to the stipulation, GECC will receive payments to satisfy its claims under a Receivables Transfer Agreement. On Sept. 14, 2005, GECC filed a complaint against Collins & Aikman Corporation; Carcorp, Inc.; General Motors Corporation; General Motors of Canada Limited; General Motors de Mexico, S. del R.L. de C.V.; Saturn Corporation; DaimlerChrysler Corporation; DaimlerChrysler Canada, Inc.; and DaimlerChrysler Motor Company, LLC. The GECC Adversary Proceeding addresses prepetition receivables that GECC believes were sold by the Debtors to Carcorp, and subsequently sold by Carcorp to GECC. GECC sought a declaratory judgment as to its interest in the receivables. The Debtors sought to collect the receivables as GECC's collection agent. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of around 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DEYE LIMITED: Creditors Ratify Voluntary Liquidation ---------------------------------------------------- Creditors of Deye Limited ratified Oct. 27 the resolution for voluntary liquidation together with the appointment of Daniel Plant of SFP as the company's Liquidator. The company can be reached at: Deye Limited Unit 10 Capitol Industrial Park Capitol Way London NW9 0EQ United Kingdom Tel: 020 8205 4020 DOUGLAS ESTATES: Hires David Jenner Cork to Liquidate Assets ------------------------------------------------------------ David Jenner Cork of McCabe Ford Williams was appointed Liquidator of Douglas Estates Services Limited on Oct. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: Douglas Estates Services Limited The Coaching House Lister Way Sandgate Folkestone Kent CT203AF United Kingdom Tel: 079 7108 6061 E-SOURCE EDUCATION: Hires Rothman Pantall to Administer Assets -------------------------------------------------------------- R.D. Smailes and S.B. Ryman of Rothman Pantall & Co. were appointed joint administrators of E-Source Education Ltd. (Company Number 05473851) on Oct. 19. Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. It is one of the largest independent firms of Chartered Accountants in the region, and rank in the top 40 in the United Kingdom. Headquartered in Cheltenham, England, E-Source Education Ltd. is engaged in on-line Internet education. ENRON CORP: Wants Court Nod on US$25,081,204 Newpower Deal ---------------------------------------------------------- Pursuant to Rule 9019(a) of the Federal Rules of Bankruptcy Procedure, Enron Corp. and its debtor-affiliates ask the Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to approve their settlement agreement with Mr. Dorsey and the NewPower Entities. Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, in New York, related that on March 14, 2001, Enron Corp., Enron North America Corp., Enron Energy Services, Inc., Enron Power Marketing, Inc., Enron Energy Services, LLC, entered into a Master Cross-Product Netting, Setoff and Security Agreement with The New Power Company, NewPower Holdings, Inc., and TNPC Holdings, Inc., concerning a series of commodity purchase and swap transaction. The Master Agreement was amended on Oct. 18, 2001, pursuant to which the Enron Debtors held US$70,000,000 in collateral posted by the NewPower Entities and the Debtors obtained secured claims against the NewPower Entities for US$28,000,000. Enron and its non-debtor affiliates Cortez Energy Services, LLC, McGarret I, LLC, McGarret II, LLC, McGarret III, LLC, and EES Warrant Trust presently own 31,666,800 shares of NewPower Holdings common stock and 24,117,800 warrants for the purchase of NewPower Holdings common stock. The 31,666,800 shares and 24,117,800 warrants collectively represent the Enron Parties' 44% equity interests in NewPower. After the Petition Date, the Enron Debtors and the NewPower Entities entered into a settlement agreement to resolve the disputes arising under the Master Agreement and the Second Agreement. Under the first settlement, the NewPower Entities allowed the Enron Debtors to foreclose the US$70,000,000 Pledged Collateral and NewPower delivered to the Debtors a US$28,000,000 secured note with respect to the payment of the Enron Secured Claims. On June 11, 2000, the NewPower Entities sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. The Enron Debtors filed timely proofs of claim in the NewPower Chapter 11 cases. The Enron Debtors assert secured claims of more than US$28,000,000 for outstanding principal and interest due on the Secured Note pursuant to the first NewPower settlement. On Nov. 5, 2002, the NewPower Entities paid US$28,485,958 to the Enron Debtors pursuant to the NewPower Bankruptcy Court's cash collateral order. On Jan. 15, 2003, the NewPower Entities, the Enron Debtors and the NewPower Unsecured Creditors Committee entered into a second settlement agreement to resolve the Committee's objection to the Debtors' claim for attorneys' fees and costs. Under the settlement, the NewPower Entities paid US$137,000 in attorneys' fees and costs to the Debtors. On Jan. 17, 2003, the NewPower Bankruptcy Court approved the appointment of Rufus T. Dorsey, IV, as the examiner for the NewPower Entities. After confirming NewPower Entities' 2nd Amended Plan of Reorganization, the NewPower Bankruptcy Court authorized NewPower to make interim distributions to certain holders of equity interests and the NewPower Entities were directed to establish an interest-bearing account reserve for the Enron Parties. NewPower deposited US$30,806,204 in the Enron Reserve. On Sept. 24, 2004, Mr. Dorsey filed Adversary Proceeding No. 04-04303 in the Enron Bankruptcy Court, seeking to recover the New Power Entities' US$28,000,000 payment on the Secured Note, recharacterize the indebtedness evidenced by the Secured Note as equity in NewPower Holdings, and to equitable subordinate all of the equity interests in NewPower Holdings held or asserted by the Enron Parties. On March 29, 2005, Mr. Dorsey filed an objection in the NewPower Bankruptcy Court, seeking to disallow the Enron Parties' equity interests. In response to the objection, the Enron Debtors filed a motion in the Enron Bankruptcy Court, seeking to enforce the automatic stay and Enron Plan injunction, and impose sanctions on Mr. Dorsey and his counsel for their knowing violation of the stay in the Enron Chapter 11 cases. The Enron and NewPower Bankruptcy Courts subsequently referred the Enron Debtors and Mr. Dorsey to mediation and both courts stayed further pursuit of the Adversary Proceeding, Mr. Dorsey's Objection, and the Sanctions Motion pending the completion of the mediation. Based on the monthly operating report submitted by NewPower Entities on June 30, 2006, the Enron Reserve held US$31,169,375 for the benefit of the Enron Parties, while the interest-bearing money market account maintained by the NewPower Entities held $16,277,572. To resolve their dispute, the parties entered into a settlement agreement. The terms of the settlement are: (1) the Enron Claims and the Enron Equity Interest will be allowed in the NewPower Chapter 11 cases, provided, however, that the Enron Parties will waive their rights to receive, collectively, the first US$5,725,000 of the Enron Reserve; (2) the NewPower Entities will transfer to the Enron Parties the Enron Reserve reflected in the NewPower June MOR, plus any interest accrued on the balance after June 30, 2006, minus US$5,725,000; (3) The NewPower Entities will make the subsequent shareholder distributions to the Enron Parties on or before December 14, 2006, and certain Enron shares held by the non-Debtor Enron affiliates will be cancelled and they will have no more ownership interest in the NewPower Entities; and (4) they will mutually release each other from all claims related to the Adversary Proceeding, the Objection and the Sanctions Motion. About Enron Corp. Headquartered in Houston, Texas, Enron Corporation filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP and Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP represent the Debtor. Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. (Enron Bankruptcy News, Issue No. 181; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ENRON CORP: Wants US$44 Million Dynegy Settlement Approved ---------------------------------------------------------- Enron Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve a Settlement Agreement with Dynegy Inc. and its affiliates concerning the Guarantee Litigation and the Dynegy Adversary Proceeding. Effective Nov. 8, 2001, Enron Corp., Enron North America Corp. fka Enron Capital and Trade Resources Corp., EnronOnline, LLC, and their non-debtor affiliates Enron Canada Corp., Enron Capital and Trade Resources, Ltd., entered into a Master Netting Security and Setoff Agreement with: -- Dynegy Inc., -- Dynegy Marketing and Trade, -- Dynegy Power Marketing, Inc., -- Dynegy Broadband Marketing and Trade, -- Dynegy Canada, Inc., -- Dynegydirect Inc., -- Dynegy Global Liquids, Inc., -- Dynegy Liquids Marketing and Trade, -- and Dynegy U.K. Limited. Melanie Gray, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that the MNA purported to create cross-product and cross-affiliate netting and set-off rights as to the underlying obligations among all the Dynegy Parties and Enron Parties under their respective trading agreements, or Underlying Master Agreements. The MNA also seeks to aggregate claims and debts among the Enron Parties and the Dynegy Parties, which means the claims and debts would be reduced to a singular amount due from the Dynegy Parties to the Enron Parties or vice versa. Additionally, Enron provided the Dynegy Parties with the Enron Group Guarantee Agreement, which guaranteed all of the Enron Parties' obligations under the MNA. On Nov. 29, 2001, ECTRL went into administration proceedings in the United Kingdom. Certain of the Dynegy Parties filed claims with ECTRL's administrators, Steven Pearson and Anthony Lomas, partners of PriceWaterhouseCoopers LLP, in the ECTRL Administration for amounts due under the underlying contracts between certain of the Dynegy Parties and ECTRL, and the joint and several liability provisions of the MNA. On Oct. 15, 2002, the Dynegy Parties filed Claim Nos. 13397, 13398, 13399, 13400, 13401, 13402 and 13403 against the Enron Debtors, with each claim amounting to US$93,558,630. The Dynegy Parties argued that the Claims are due under the Enron Guarantee. Before filing their Claims, the Dynegy Parties filed a request for relief from the automatic stay to enforce the MNA and commence arbitration against the Enron Debtors. On Oct. 18, 2002, the Dynegy Parties filed Arbitration Proceeding No. 50T 198 00542 02, with the American Arbitration Association in Houston, Texas, against ECTRL, EOL, ECC, and ECTRC. The Enron Parties objected to the Dynegy Parties' stay relief motion and moved to enjoin the Arbitration Proceeding. The Court subsequently granted the Enron Parties' request. Concurrent with the filing of their stay relief objection, the Enron Debtors filed Adversary Proceeding No. 02-3468 against the Dynegy Parties. The Enron Debtors sought declaratory relief that the MNA was avoidable and without legal effect and seeking payment of US$229,936,102, plus interest and attorneys' fees to the Enron Parties for amounts due under the Underlying Master Agreements. On March 4, 2003, the Dynegy Adversary Proceeding and all other trading cases were referred to mediation under a Court-ordered mediation process before the Honorable Allan L. Gropper of the Southern District of New York Bankruptcy Court as the court- appointed mediator. The parties participated in five mediation sessions, and the last mediation session occurred on October 26, 2005. On Dec. 1, 2003, the Enron Debtors also filed Adversary Proceeding No. 03-93576 against DMT and DCI, to avoid, as a fraudulent transfer, a credit support guarantee issued in connection with certain of the parties' contracts. The parties eventually agreed that the Guaranty Litigation would ultimately be consolidated in the Dynegy Adversary Proceeding. On April 26, 2006, Judge Gropper advised the Court that mediation between the parties was no longer suitable and suggested that the mediation be withdrawn. At a June 8, 2006 status conference, the Court ordered the Dynegy Adversary Proceeding withdrawn from mediation. On June 15, 2006, the Dynegy Parties filed an answer, affirmative defenses and counterclaim seeking to enforce the MNA and the arbitration clause under the MNA. According to Ms. Gray, as a result of the Dynegy Adversary Proceeding and other orders entered by Judge Gonzalez, the Enron Debtors hold reserves related to US$1,144,320,954 of disputed claims for the benefit of the Dynegy Parties in the Disputed Claims Reserve. After negotiations, the parties reached a settlement agreement. The terms of the settlement are: (1) they will release each other from all claims, obligations, demands, actions, causes of action, and liabilities arising from any event, transaction, matter and circumstance related to the Guarantee Litigation and the Dynegy Adversary Proceeding; (2) the Dynegy Parties will make a US$44,000,000 settlement payment to the Enron Parties; (3) the Dynegy Claims will be deemed irrevocably withdrawn, with prejudice, and to the extent applicable, expunged; and (4) after actual receipt of the settlement payment, the Enron Parties will enter into stipulations with the Dynegy Parties, dismissing with prejudice the Dynegy Adversary Proceeding, the Guarantee Litigation, and all claims and counterclaims related to the Adversary Proceeding and the Guarantee Litigation. About Enron Corp. Headquartered in Houston, Texas, Enron Corporation filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP and Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP represent the Debtor. Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. (Enron Bankruptcy News, Issue No. 181; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) EURO CELLULAR: D.J. Goddard Appoints UHY Hacker as Receivers ------------------------------------------------------------ D. J. Goddard appointed Andrew Andronikou and Ladislav Hornan of UHY Hacker Young joint administrative receiver of Euro Cellular Ltd. (Company Number 04498489) on Nov. 1. The administrators can be reached at: Andrew Andronikou and Ladislav Hornan UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 Euro Cellular Ltd. can be reached at: 131 Putney Bridge Road Wandsworth London SW15 2PA United Kingdom Fax: 020 8875 9065 EUROACT CONSTRUCTION: Brings In DTE Leonard to Administer Assets ---------------------------------------------------------------- A. Clifton and P. D. Masters of DTE Leonard Curtis were appointed joint administrators of Euroact Construction Ltd. (Company Number 02697137) on Oct. 27. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Euroact Construction Ltd. can be reached at: Walders Road Rustington Littlehampton West Sussex BN16 3PE United Kingdom Tel: 01903 772 179 EUROPEAN ODYSSEY: Taps Peter Nottingham to Liquidate Assets ----------------------------------------------------------- Peter Nottingham of Nottingham Watson Ltd. was appointed Liquidator of European Odyssey Limited on Nov. 1 for the creditors' voluntary winding-up proceeding. The company can be reached at: European Odyssey Limited Unit 13 Rolls Royce Industrial Estate Spring Road Ettingshall Wolverhampton West Midlands WV4 6JT United Kingdom Tel: 01902 404 061 EUROTUNNEL GROUP: Creditors Mull Liquidation Over Safeguard Plan ---------------------------------------------------------------- Senior creditors of Eurotunnel Group filed a legal suit in France in a move to block the company's latest plan to restructure its GBP6.2 billion debt, The Guardian reports citing unnamed sources. According to the report, the dissenting creditors objected against their inclusion in a financial creditors' committee, which accounts for about GBP4.3 billion of Eurotunnel's debt. They contended that only banks can be included in the committee, so institutional investors have to be excluded from the group. The sources added that the rebel creditors are optimistic an appellate court would accept their objection once the Commercial Court of Paris would trash the protest in the lower court, The Guardian says. The daily suggests that Oaktree Capital Management, a member of the Ad Hoc committee of senior creditors, is believed to be behind the legal move after dismissing the channel operator's rescue plan. Eurotunnel says the lawsuit will be immaterial on the process and the financial creditors' committee will proceed with a vote on the rescue plan. The creditors will vote on the debt plan this month or early December. If they accept the plan, an exchange offer on the outstanding shares will be made. Creditors Mull Liquidation as Best Option The company's creditors were planning to force the company into liquidation as the best option to recover money from the company, the paper relates. "It could be a very profitable business. One would suspect that liquidation would get a decent price for the business. We can accept a deal that has a certainty of return or decide that you can do better by going for a liquidation," an unnamed source told The Guardian. In the event of a liquidation, creditors like Deutsche Bank and Oaktree Capital will be first in line to receive cash from a sale. In a letter to Eurotunnel's shareholders, Chairman and Chief Executive Jacques Gounon warned that in the event that the creditors vote against the Safeguard plan, Eurotunnel will be placed into administration and could be liquidated, or sold by the Paris Commercial Court. "The asset value at liquidation has been estimated to be approximately GBP890 million, almost five times less than that put forwards in the plan," Mr. Gounon expressed. "Shareholders would receive nothing. The same situation would pertain if the company was sold: shareholders therefore have even more reason to mobilize themselves to demand that the two States refuse the ruinous transfer of the Concession," he added. About the Company Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. FLEXIHOSE SOMERSET: Calls In Liquidator from Bishop Fleming ----------------------------------------------------------- Jeremiah Anthony O'Sullivan of Bishop Fleming was appointed Liquidator of Flexihose (Somerset) Limited on Nov. 1 for the creditors' voluntary winding-up proceeding. The company can be reached at: Flexihose (Somerset) Limited 1a Castle Road Chelston Business Park Wellington Somerset TA219JQ United Kingdom Tel: 01823 664 603 Fax: 01823 660 061 GEMINI WINDOWS: Appoints Liquidator from Tenon Recovery ------------------------------------------------------- Ian William Kings of Tenon Recovery was appointed Liquidator of Gemini Windows and Conservatories Limited on Oct. 27 for the creditors' voluntary winding-up proceeding. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. GENTEK INC: To Shut Down New Jersey Plant in December 2006 ---------------------------------------------------------- GenTek Inc. will be closing its Newark, N.J. sulfuric acid production plant at the end of this year. The production and shipment of other products, aluminum sulfate and ferric sulfate, currently being sold from the Newark, N.J. location will continue without any interruptions. GenTek's decision was driven by the fact that the Newark Sulfur operation, already cash flow negative, was facing increasingly adverse market conditions and required infrastructure investments, which would have lead to material cash losses in this business. It is anticipated that shipment of product will cease during December of 2006 and all closure activities are expected to be completed by the end of April of 2007. The Company is currently negotiating with a third party on the potential sale of the site. The restructuring charges as a result of this closure include termination costs of around US$1 million and other closure costs totaling around US$1 million, substantially all of which are expected to be paid in 2007. GenTek Inc. -- http://www.gentek-global.com/-- provides specialty inorganic chemical products and services for treating water and wastewater, petroleum refining, and the manufacture of personal-care products, valve-train systems and components for automotive engines and wire harnesses for large home appliance and automotive suppliers. GenTek operates over 60 manufacturing facilities and technical centers and has around 6,900 employees. * * * In February 2005, Moody's Investors Service placed a B2 rating on GenTek's US$60 million senior secured revolving credit facility, due 2010, US$235 million senior secured term loan B, due 2011. HOLBROOKE SUPPLIES: Brings In Liquidator from Begbies Traynor ------------------------------------------------------------- G. W. Rhodes of Begbies Traynor was appointed Liquidator of Holbrooke Supplies Limited on Nov. 1 for the creditors' voluntary winding-up proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. J J BUNKER: Hires Liquidator from Rogers Evans ---------------------------------------------- S. J. Lowes of Rogers Evans was appointed Liquidator of J J Bunker & Son Limited on Oct. 30 for the creditors' voluntary winding-up proceeding. The company can be reached at: J J Bunker & Son Limited 73 Common Road Chandlers Ford Eastleigh Hampshire SO5 31HE United Kingdom Tel: 023 8026 8176 Fax: 023 8027 0668 J. A. TONGE: Appoints Parkin S. Booth as Joint Administrators ------------------------------------------------------------- Robert Martin Rutherford and Jonathan Ronald Booth of Parkin S. Booth & Co. were appointed joint administrators of J. A. Tonge Ltd. (Company Number 1630216) on Oct. 31. Parkin S. Booth & Co http://www.parkinsbooth.co.uk/-- independent Accountants Licensed Insolvency Practitioners is a medium sized firm with particular expertise in its own field. Dealing entirely with insolvency matters, we do not, for example, undertake any audit or taxation work. J. A. Tonge Ltd. can be reached at: East Street Southport Merseyside PR9 0RD United Kingdom Tel: 01704 500 893 Fax: 01704 500 895 KRONOS INTERNATIONAL: 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. chemical and allied products sectors, the rating agency confirmed its B1 Corporate Family Rating for Kronos International, Inc. as well as the B2 rating on the Company's EUR400 million Senior Secured Notes due 2013. Moody's also assigned an LGD5 rating to those debentures, suggesting noteholders will experience a 75% loss in the event of a default. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Dallas, Texas, Kronos International is engaged in European value-added titanium dioxide pigments operations. LAZARD LTD: Posts US$35 Million Third Quarter 2006 Net Income ------------------------------------------------------------- Lazard Ltd.'s net income on a fully exchanged basis for the third quarter of 2006 decreased 32% to US$35.0 million or US$0.34 per share, from US$51.7 million or US$0.52 per share in the same period of 2005, RTTNews reports. RTTNews relates that on average, six analysts surveyed by First Call/Thomson Financial expected Lazard to earn US$0.46 per share for the third quarter of 2006. Lazard's operating income dropped by 36% to US$49.19 million for the quarter of 2006, compared with the US$77.3 million reported in the same period in 2005, RTTNews notes. Operating income is after interest expense and before income taxes and minority interests. RTTNews underscores that the operating revenue of Lazard for this year's third quarter fell 15% to US$317.61 million, from US$374.26 million in the same quarter last year. Operating revenue does not include interest expense relating to financing activities and revenue relating to the consolidation of LAM General Partnerships, each of which is included in net revenue. Lazard's net revenue decreased 17% to US$297.51 million in the third quarter of 2006, from US$356.90 million in the third quarter of 2005, RTTNews says. Lazard told RTTNews that the decline in revenues and earnings were due to lower number of M&A transactions closing in the third quarter of 2006 and the comparison with unusually high 2005 third-quarter revenue. RTTNews emphasizes that the net income of Lazard before exchange of outstanding exchangeable interests for the first nine months of 2006 rose 32% to US$56.4 million or US$1.45 per share, compared with the income from continuing operations of US$42.7 million or US$1.14 per share for the first nine months of 2005. Lazard's operating revenue for the first nine months of 2006 rose 11% to US$1,079.6 million, from to US$969.9 million in the same period of 2005, RTTNews states. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and Brazil. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. In Europe, the firm maintains operations in France, Germany, Spain and the United Kingdom, among others. At June 30, 2006, Lazard's balance sheet showed US$2.1 billion in total assets and US$2.8 billion in total liabilities, resulting in US$745 million stockholders' deficit. L-3 COMMUNICATIONS: Moody's Changes Rating Outlook to Stable ------------------------------------------------------------ Moody's Investors Service affirmed all ratings of L-3 Communications Holdings, Inc. -- Corporate Family Rating Ba2, Subordinated Notes Rating of Ba3 (LGD4, 68%), and Speculative Grade Liquidity Rating of SGL-1, and has changed L-3's ratings outlook to stable from negative. The ratings outlook had been negative since the largely debt- financed July 2005 acquisition of Titan Corp. for around US$2.7 billion. At that time, Moody's was concerned about the substantial increase in leverage related to this transaction and about the ability of the company to restore credit metrics to those commensurate with its Ba2 rating in light of potential challenges associated with the acquisition of Titan, which had been its largest acquisition to date. Since that time, L-3 has demonstrated its ability to handle both organic and acquisition-related growth while maintaining operating margins and generating substantial cash flows despite significant levels of working capital investment and unexpected non-recurring charges. The company has also been successful in integrating the operations of Titan and other recent acquisitions into its existing operations. Based on L-3's announced financial results for the quarter-ending September 2006, Moody's observes that L-3 has largely achieved improvements in credit metrics, albeit without actual reduction in debt levels, sufficient to warrant the stabilization in ratings. The Ba2 Corporate Family rating continues to reflect L-3's considerable revenue base and backlog, as well as the company's increasing lead position in a variety of segments in the U.S. Government (predominantly DoD) contracting sector, which supports expectations for strong free cash generation over the next few years. However, the rating also takes into consideration L-3's continued heavy debt levels, risk associated with the company's acquisition strategies, and uncertainty as to whether projected free cash generation will be used to repay debt or applied to more aggressive financial policies. The current stable outlook reflects Moody's expectations that L-3 will continue to grow its revenue base in 2007 through organic growth as well as through continued use of acquisitions. However, L-3's acquisition pace is expected to moderate over the next few years, suggesting a more focused approach on creating value from its existing business lines rather than from opportunistic acquisition patterns exhibited by the company until recently. Moody's further expects that the company will be able to achieve growth while maintaining operating margins in the 10% range, likely resulting in substantial free cash flows that should allow the company to begin to reduce outstanding debt levels and improve core credit metrics. Ratings or their outlook may be subject to upward revision if the company were to achieve planned growth levels while reducing debt, such that leverage (Debt/EBITDA, as measured per Moody's standard methodologies) were to fall below 3 times and EBIT were to remain above 3.5 times interest for a sustained period. Ratings would be subject to downward pressure if the company were to undertake an increased pace of levered acquisitions, or engage in any leveraging transactions that increase the company's risk profile, resulting in leverage in excess 4.5 times, EBIT/Interest below 2.5 times, or free cash flow below 7% of total debt. Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance systems, secure communications systems, aircraft modernization, training and government services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors. LOVEKYN HOLDINGS: Names Stephen Robert Cork as Administrator ------------------------------------------------------------ Stephen Robert Cork of Smith & Williamson Ltd. was named administrator of Lovekyn Holdings Ltd. (Company Number 5145785), Lovekyn Garages Ltd. (Company Number 1081435), and Lovekyn Of Ewell Ltd. (Company Number 3848021) on Oct. 27. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provideS investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. Headquartered in Epsom, England, Lovekyn Holdings Ltd., Lovekyn Garages Ltd., and Lovekyn of Ewell Ltd. -- http://www.lovekyn.co.uk/-- sells motor vehicles. M E ENGINEERING: Creditors' Meeting Slated for November 22 ---------------------------------------------------------- Creditors of M E Engineering Limited (Company Number 03984516) will meet at 10:30 a.m. on Nov. 22 at: Grantham Marriott Hotel Swingbridge Road Grantham NG31 7XT 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. 21 at: G. Mummery Joint Administrator Vantis Redhead French Ltd. 43-45 Butts Green Road Hornchurch Essex RM11 2JX United Kingdom Tel: 01708 458211 Fax: 01708 442308 MSB ELECTRONICS: Names Matthew Colin Bowker Liquidator ----------------------------------------------------- Matthew Colin Bowker of Unity Business Services LLP was appointed Liquidator of MSB Electronics & Design Limited on Nov. 1 for the creditors' voluntary winding-up procedure. The company can be reached at: MSB Electronics & Design Limited 61 Chorley Road Blackpool Lancashire FY3 7XQ United Kingdom Tel: 01253 394 499 METTECH KENT: Joint Liquidators Take Over Operations ---------------------------------------------------- Bernard Hoffman and Ian Douglas Yerrill of Gerarld Edelman Business Recovery were appointed Joint Liquidators of Mettech (Kent) Limited on Oct. 31 for the creditors' voluntary winding-up procedure. The company can be reached at: Mettech (Kent) Limited Bonham Drive Eurolink Business Park Sittingbourne Kent ME103RY United Kingdom Tel: 01795 870 150 NVESTA PLC: Appoints F A Simms & Partners as Administrators ----------------------------------------------------------- Richard Frank Simms, Martin Richard Buttriss and Steven Peter of F A Simms & Partners Plc were appointed joint administrators of Nvesta Plc (Company Number 01673650) on Oct. 23. The administrators can be reached at: Richard Frank Simms, Martin Richard Buttriss and Steven Peter F A Simms & Partners Plc Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Nvesta Plc can be reached at: 16 St. John Street Islington London EC1M 4NT United Kingdom Tel: 020 7454 0704 Fax: 020 7454 9453 ODDIES LIMITED: Brings In F A Simms to Administer Assets -------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners Plc were appointed joint administrators of Oddies Ltd. (Company Number 4204044) on Oct. 4. The administrators can be reached at: Richard Frank Simms and Martin Richard Buttriss F A Simms & Partners Plc Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Oddies Ltd. can be reached at: Maritime House Old Town London SW4 0JW United Kingdom Tel: 020 7720 1231 P.A.B. ELECTRONICS: Hires BDO Stoy to Administer Assets ------------------------------------------------------- David Harry Gilbert and Shay Bannon of BDO Stoy Hayward LLP were appointed joint administrators of P.A.B. Electronics Ltd. (Company Number 01037331) on Oct. 11. 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. Headquartered in Margate, England, P.A.B. Electronics Ltd. manufactures electronic components. PORTRAIT CORP: Panel Hires Peter Solomon Co. as Fin'l. Advisor -------------------------------------------------------------- The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors appointed in Portrait Corporation of America, Inc., and its debtor-affiliates' bankruptcy cases to retain Peter J. Solomon Company as its financial advisor, nunc pro tunc to Sept. 11, 2006. PJSC is expected to: a) evaluate the assets and liabilities of the Debtors; b) analyze and review the financial and operating statements of the Debtors; c) analyze the business plan and financial results of the Debtors; d) review all aspects of debtor in possession financing (if any), cash collateral usage and adequate protection and any exit financing in connection with the Debtors' joint plan of reorganization and any related budgets; e) provide specific valuation or other financial analyses as the Committee may require in connection with the Chapter 11 Cases; f) help with the claim resolution process and distributions relating thereto; g) prepare, analyze and explain the Plan to various constituencies; h) provide testimony in court on behalf of the Committee, if necessary or as reasonably requested by the Committee; and i) provide other financial advisory services as PJSC, the Committee and/or counsel to the Committee may, from time to time agree in writing and which are consistent with PJSC's capabilities. PJSC will be entitled to receive, as compensation for its services, a US$125,000 monthly advisory fee plus the reimbursement of all reasonable and actual out of pocket expenses. Prior the Debtors' bankruptcy filing, PJSC has received advance payments, aggregating US$407,300, comprised of: -- US$400,000 for monthly advisory fees, and -- US$7,300.71 for reimbursement of out-of-pocket expenses. Anders J. Maxwell, at PJSC, assures the Court that his firm does not hold any interest adverse to the Debtors' estates and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. PJSC can be reached at: Peter J. Solomon Company Attn: Anders J. Maxwell 520 Madison Avenue New York, NY 10022 Telephone: (212) 508-1600 Fax: (212) 508-1633 About Portrait Corporation Portrait Corporation of America, Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany and the United Kingdom. The Company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' Financial Advisor and Investment Banker. At June 30, 2006, the Debtor had total assets of US$153,205,000 and liabilities of US$372,124,000. POSTAL GIFTS: D. L. Platt Leads Liquidation Procedure ----------------------------------------------------- D. L. Platt of SPW Poppleton & Appleby was appointed Liquidator of Postal Gifts Limited on Oct. 30 for the creditors' voluntary winding-up procedure. The company can be reached at: Postal Gifts Limited 81 High Street Odiham Hook Hampshire RG29 1LB United Kingdom Tel: 01256 702547 PROCON SOFTWARE: Taps Matthew Colin Bowker as Administrator ----------------------------------------------------------- Matthew Colin Bowker of Jacksons Jolliffe Cork was named administrator of Procon Software and Support Ltd. (Company Number 02072856) on Oct. 27. Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- engages exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. Procon Software and Support Ltd. can be reached at: The Deep Business Centre Tower St. Hull North Humberside HU1 4BG United Kingdom Tel: 01482 328120 PROVENCE COMMERCIAL: Royal Bank Taps Kroll as Receivers ------------------------------------------------------- Royal Bank of Scotland Plc appointed David John Whitehouse and Simon Wilson of Kroll Ltd. joint administrative receivers of Provence Commercial Properties Plc (Company Number 4206530) on Oct. 31. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Provence Commercial Properties Plc 43 45 Bradshawgate Bolton Lancashire BL1 1DR United Kingdom Tel: 01204 399 090 Fax: 01204 399 094 PROVENCE HOLDINGS: Appoints Kroll to Administer Assets ------------------------------------------------------ David John Whitehouse and Simon Wilson of Kroll Ltd. were appointed joint administrators of Provence Holdings Ltd. (Company Number 04200376) on Oct. 31. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Provence Holdings Ltd. can be reached at: 43 45 Bradshawgate Bolton Lancashire BL1 1DR United Kingdom Tel: 01204 399 090 RANK GROUP: Declares Offer for Burns Philp Unconditional -------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Nov. 1, Rank Group Limited revealed that the only remaining condition in its offer period for shareholders of Burns Philp & Company Limited is the 90% acceptance condition. According to the TCR-AP, if this condition is met or waived, shareholders will be paid by the earlier of five business days of the offer becoming unconditional and Nov. 16, 2006. Those shareholders who have not accepted before Nov. 9, 2006, will enter the compulsory acquisition process. Under this process, it will take between five weeks and two months for payment to be made. In an update, Rank Group informs the New Zealand Stock Exchange that all Acceptance Instructions have now been validly processed or implemented. In its NZX statement dated Nov. 7, 2006, Rank Group discloses that it has relevant interests in more than 90% of the Burns Philp shares. Thus, the only remaining condition of the Offer has now been fulfilled. Accordingly, Rank Group declares that the Offer is unconditional. Rank Group says it will proceed to compulsory acquisition as soon as possible. The TCR-AP had also reported that the Foreign Investment Review Board in Australia and the Overseas Investment Office in New Zealand have approved the proposed offer of Burns Philp & Company Limited's major shareholder, Rank Group, for all of Burns Philp's shares it does not already hold. Questions regarding the takeover offer should be directed to the Rank Offer Information Line: * 1300-657-039 -- for callers within Australia, * 0800-555-039 -- for callers within New Zealand, or * +613-9415-4353 -- for callers from outside Australia and New Zealand About Burns Philp Burns Philp & Company Limited -- http://www.burnsphilp.com/-- is an Australian based company involved in the production and distribution of food ingredients and consumer branded food, beverage and related products. The Group operates internationally with products including snack foods, breakfast cereals and meal components. Burns Philp has a 20% interest in Goodman Fielder Limited. It maintains operations in The Netherlands through its Burns Philp Treasury (Europe) B.V. subsidiary. About Rank Group Headquartered in London, United Kingdom, Rank Group PLC -- http://www.rank.com/-- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * On March 6, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. ROSCOE FABRICATORS: Hires Liquidators from Gibson Hewitt -------------------------------------------------------- Lynn Gibson and Robert David Hewitt of Gibson Hewitt were appointed Joint Liquidators of Roscoe Fabricators Limited (formerly Basicprefer Limited) on Nov. 1 for the creditors' voluntary winding-up procedure. The company can be reached at: Roscoe Fabricators Limited Farnham Trading Estate Farnham Surrey GU9 9NN United Kingdom Tel: 01252 721 555 Fax: 01252 737 381 ROTARY BLADES: Appoints T. C. E. Harrison as Liquidator ------------------------------------------------------- T. C. E. Harrison of Tom Harrison Insolvency Services was appointed Liquidator of Rotary Blades Manufacturing Limited on Oct. 30 on for the creditors' voluntary winding-up procedure. The company can be reached at: Rotary Blades Manufacturing Limited Sheepwalk Lane Upton Pontefract West Yorkshire WF9 1LL United Kingdom Tel: 01977 648 748 T TELIA: Hires Baker Tilly as Joint Administrators -------------------------------------------------- Matthew Richard Meadley and Geoffrey Lambert Carton-Kelly of Baker Tilly were appointed joint administrators of T Telia Ltd. (formerly Turbo Tools and Engineering Limited) (Company Number 04756384) on Oct. 27. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. Headquartered in Camberley, England, T Telia Ltd. manufactures metal structures and parts. TEACHERQUEST LIMITED: Appoints Menzies to Administer Assets ----------------------------------------------------------- Jason James Godefroy and Andrew Gordon Stoneman of Menzies Corporate Restructuring were appointed joint administrators of Teacherquest Ltd. (Company Number 05853484) on Oct. 27. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. Teacherquest Ltd. can be reached at: 87 High St. Hemel Hempstead Hertfordshire HP1 3AH United Kingdom Tel: 01442 838390 UNITED BISCUITS: Fitch Withdraws B- Rating on Lack of Update ------------------------------------------------------------ Fitch Ratings withdrew U.K.-based United Biscuits Finance Plc's and Regentrealm Ltd.'s Issuer Default Ratings of B- on Rating Watch Positive and Short-term B. In addition, the BB- and RR1 ratings on RWP on Regentrealm Ltd.'s senior secured debt have also been withdrawn. The withdrawal is due to lack of information from the company, following the recent announcement of a secondary buyout led by funds advised by Blackstone and PAI Partners. Although the details of the new capital structure will be unveiled in the next few weeks, Fitch estimates that upon completion of the secondary buyout, funds from operations- adjusted leverage will be higher than the current level of around 2x, after accounting for the sale of the Southern European business and the high-yield notes redemption with the net sale proceeds. However, even if the new financial structure were to display FFO-adjusted leverage in excess of 4.5x, and tight free cash flow headroom, the IDR would be expected to stabilize at the current level. In the event of lower financial leverage and/or better fixed charge coverage, the IDR would be expected to be upgraded, albeit by no more than one notch. UNITEDSHIELD LIMITED: Brings In Administrator from McCabe Ford -------------------------------------------------------------- Peter Roderick Frowde of McCabe Ford Williams was appointed administrator of Unitedshield Ltd. (Company Number 02783823) on Oct. 26. The administrator can be reached at: Peter Roderick Frowde McCabe Ford Williams Bank Chambers 1 Central Avenue Sittingbourne Kent ME10 4AE United Kingdom Tel: (01795) 479111 Fax: (01795) 428810 Web: http://www.mfw.co.uk E-mail: sittingbourne@mfw.co.uk Unitedshield Ltd. can be reached at: Joseph Wilson Industrial Estate Millstrood Road Whitstable Kent CT5 3PS United Kingdom Tel: 01227 464 593 Fax: 01227 264 768 WINDSMOOR HOUSE: Taps Grant Thornton as Joint Administrators ------------------------------------------------------------ Leslie Ross and Joseph P. McLean of Grant Thornton U.K. LLP were appointed joint administrators of Windsmoor House School Ltd. (Company Number 04458576) on Oct. 30. 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. Windsmoor House School Ltd. can be reached at: Thomas House Pope Lane Whitestake Preston Lancashire PR4 4AZ United Kingdom Tel: 01254 691 195 WIRED UP: Hires Peter O'Hara to Liquidate Assets ------------------------------------------------ Peter O'Hara of O'Hara & Co. was appointed Liquidator of Wired Up Property Maintenance Limited on Oct. 27 for the creditors' voluntary winding-up procedure. The company can be reached at: Wired Up Property Maintenance Limited 20 Southdale Road Ossett West Yorkshire WF5 8BA United Kingdom Tel: 01924 273 251 * Moody's Reports Improvement in European CMBS Office Markets ------------------------------------------------------------- The European office market continued to strengthen in the first half of 2006, says Moody's Investors Service in its eighth semi-annual update to its Red-Yellow-Green(R) special report. "According to the assessment, the market has strengthened further due to stable net absorption in the majority of markets and reduced vacancy rates," says Moody's Analyst Nicole Lux, the author of the report. Moody's Red-Yellow-Green� report assesses the strength of European office real estate 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 European office markets. The analysis includes 24 European office markets, which are 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-year 2005 and mid-year 2006, the European weighted average office market score increased from 57 to 61, maintaining an overall yellow market score. In total there were five red markets, twelve yellow markets and seven green markets at mid- year 2006. Five office markets strengthened their position, of which two moved from a red to a yellow market and three moved from a yellow to a green market. Market deterioration was observed in three markets: Edinburgh and Hamburg, which moved from a green to a yellow market, and Manchester, which moved from a green to a red market. "European office markets have seen a stable recovery since the beginning of 2003. The improvement between mid-year 2005 and mid-year 2006 was principally driven by: -- better net absorption levels; and -- declining vacancy rates in many office markets, including the prime office markets London, Paris and Madrid. The overall weighted average vacancy rate for all 24 markets improved from 9.8% to 8.9% over the 12-month period," says Ms. Lux. "However, the yellow score still indicates that some European office markets warrant caution and should be monitored carefully." Especially markets which are not very well diversified such as Frankfurt or Dublin are highly volatile and easily negatively affected by high vacancy rates and oversupply. * Moody's Reports 1.5% European Speculative-Grade Default Rate -------------------------------------------------------------- Moody's global speculative-grade default rate ended October at 1.7%, unchanged from its revised level in September, Moody's Investors Service reports. The global speculative-grade default rate began 2006 at 1.9% and was 2.0% a year ago. Moody's default rate forecasting model is predicting that its issuers-based global default rate will also end 2006 at its current 1.7% level. The model predicts that the default rate will then rise to 2.5% by the end of October 2007. In the U.S., the speculative-default rate settled at 1.9% in October, down slightly from the revised 2.1% rate at the end of September. The U.S. speculative-grade rate started the year at 2.4%, and was 2.3% a year ago. Meanwhile, the European speculative-grade default rate experienced a three-fold jump in October to 1.5% from 0.5% at the end of September. The 1.5% rate is slightly below the 1.6% European default rate of a year ago, but higher than the 1.1% level at the start of 2006. The increase reflected the defaults of two U.K.-based companies, Sea Containers, Ltd. and Damovo Ill S.A., only the second and third Moody's-rated European issuers to default in 2006. France-based Global Automotive Logistics defaulted in May. In addition to the two confirmed European bond defaults, Luxfer Holdings Plc agreed to a restructuring with its bondholders which, if completed according to the announced terms, will constitute a default as a distressed exchange. In all, October saw three corporate bond issuers default on a total of US$1.8 billion. The largest default for the month was U.S.-based Dura Operating Corp., the automotive parts supplier, which missed a bond interest payment on Oct. 16 and filed for bankruptcy 14 days later with US$934 million in bonds outstanding. Sea Containers also filed for Chapter 11, with US$386 million in bonds outstanding, while Damovo Ill deferred the semiannual payment on around US$455 million of bonds due 2012. Year-to-date for 2006, 21 Moody's rated corporate bond issuers have defaulted on a total of US$7 billion of bonds. During the same period of 2005, Moody's saw 28 defaults on US$19.9 billion of bonds. The largest default in 2006 remains the bankruptcy of Dana Corp., which affected US$1.6 billion in bonds. In October, the global speculative-grade default rate as a percentage of dollar volume was 2.1%, a slight decline from September's revised level of 2.2%. The volume-based rate was 3.8% at the beginning of 2006 and 3.7% at the end of October 2005. The U.S. default rate as a percentage of dollar volume fell from September's revised level of 2.5% to 2.3% in October. A year ago, the U.S. rate by percentage of dollar volume was 4.0%. Moody's European dollar volume-based speculative-grade default rate rose sharply during October, increasing from the 0.1% at the end of September to 0.9%. This is higher than the 0.4% it began the year at but lower than the 1.3% in October 2005. In the rated loan market, Dura Operating Corp. was the only Moody's-rated default in October. The company had around US$225 million of loans outstanding when it filed for bankruptcy. The default was the sixth Moody's-rated loan default of 2006. All but one has been U.S. based. The same 10-month period of 2005 saw a total of 10 loan defaults, all by U.S. issuers. Moody's issuer-weighted loan default rate fell to 0.8% for the twelve-month period ending October, from 1% ending September. * BOOK REVIEW: Legal Aspects of Health Care Reimbursement --------------------------------------------------------- Author: Robert J. Buchanan and James Minor Publisher: Beard Books Paperback: 304 pages List Price: US$34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587980932/internetbankrupt With Legal Aspects of Health Care Reimbursement, Buchanan, a professor in the School of Public Health at Texas A&M, and Minor, an attorney, have come up with an invaluable resource for lawyers and anyone else seeking an introduction to the legal and social issues related to Medicare and Medicaid. The administrative costs of Medicare and Medicaid reimbursement have been a heated topic of debate among public officials and administrators of provider healthcare organizations, especially health maintenance organizations. Although inflation and the use of costly medical technology are key factors in the rise in Medicare and Medicaid costs, some control can be gained through appropriate compliance, using more efficient procedures and better detection of fraud. This work is a major guide on how to go about doing this. Though mostly a legal treatise, Legal Aspects of Health Care Reimbursement, first published in 1985, also offers commentary through legislative and regulatory analyses, thereby explaining how healthcare reimbursement policies affect the solvency and effectiveness of the Medicare and Medicaid programs. In discussing how legislation and regulations affect the solvency and effectiveness of government-provided healthcare, the authors offer insight into the much-publicized and much- discussed issue of runaway healthcare costs. Buchanan and Minor do not deny that healthcare costs are out of control and are onerous for the government and ruinous for many individuals. But healthcare reimbursement policies are not the cause of this, the authors argue. To make their case, they explain how the laws and regulations in different areas of the Medicare and Medicaid programs create processes that are largely invisible to the public, but make the programs difficult to manage financially. The processes are not well thought out nor subject to much quality control, with the result that fraud is chronic and considerable. The areas of Medicare covered in the book are inpatient hospital reimbursement, long-term care, hospice care, and end-stage renal disease. The areas of Medicaid covered are inpatient hospital and long-term care plus abortion and family planning services. For each of these areas, the authors discuss the conditions for receiving reimbursement, the legislation and regulations regarding reimbursement, the procedures for being reimbursed, the major areas of reimbursement (for example, capital-related costs, dietetic services, rental expenses); and court cases, including appeals. Reimbursement practices of selected states are covered. For each of the major areas of interest, the chapters are organized in a manner that is similar to that found in reference books and professional journals for attorneys and accountants. Laws and regulations are summarized and occasionally quoted with expert background and commentary supplied by the authors. With regard to court cases and rulings pertaining to Medicare and Medicaid, passages from court papers are quoted, references to legal records are supplied, and analysis is provided. Though the text delves into legal issues, it is accessible to administrators and other lay readers who have an interest in the subject matter. Clear chapter and subchapter titles, a table of cases following the text, and a detailed index enable readers to use this work as a reference. The value of this book is reflected in the authors' ability to distill great amounts of data down to one readable text. It condenses libraries of government and legal documents into a single work. Answers to questions of fundamental importance to healthcare providers -- those dealing with qualifications, compliance, reimbursable costs, and appeals -- can be found in one place. Timely reimbursement depends on proper application of the rules, which is necessary for a provider's sound financial standing. But the authors specify other reasons for writing this book, to wit: "Providers should have a general knowledge of the law and should not rely on manuals and regulations exclusively." By summarizing, commenting on, and citing cases relating to principal provisions of Medicare and Medicaid, the authors accomplish this objective. The authors also cover the topic of fraud with respect to both Medicare and Medicaid, offering both a legal treatment and commentary. At the end of each chapter is a section titled "Outlook," which contains a discussion of government studies, changes in healthcare policy, or other developments that could affect reimbursement. Although this work was published over two decades ago, much of this discussion is still relevant. Finally, the book is a call for change. The authors remark in their closing paragraph: "Given the increasing for-profit orientation of the major segments of the health care industry, proprietary providers should be particularly responsive to new efficiency incentives" in reimbursement. In relation to this, "policymakers [should] develop reimbursement methods that will encourage providers to become more efficient." Robert J. Buchanan is currently a professor in the Department of Health Policy and Management in the School of Rural Public Health at the Texas A&M University System Health Sciences Center. James D. Minor, a former law professor at the University of Mississippi, has his own law practice. ********* 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 * * *