/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061121.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 Tuesday, November 21, 2006, Vol. 7, No. 231 Headlines A U S T R I A HERBOWITA LLC: Claims Registration Period Ends Nov. 28 HRID LLC: Claims Registration Ends November 28 JOHANN BRUNNER: Creditors' Meeting Slated for November 28 KRAINZ LLC: Property Manager Offers 2.57% Claims Recovery THERAPIEGESELLSCHAFT KURHOTEL: Claims Registration Ends Nov. 30 B E L G I U M GOODYEAR TIRE: Meets with Union to Discuss New Labor Deal GOODYEAR TIRE: Fitch Junks US$1-Billion Senior Unsecured Notes M. FABRIKANT & SONS: Files Chapter 11 Petition in New York M. FABRIKANT & SONS: Case Summary & 45 Largest Unsec. Creditors D E N M A R K BLOCKBUSTER INC: Fitch Affirms Issuer Default Rating at CCC F R A N C E ALCATEL SA: U.S. Congress Okays Merger with Lucent Technologies ALCATEL SA: Installs Message Delivery System at Citigroup CLEAR CHANNEL: Inks US26.7-Bln Merger Deal with Private Equity CLEAR CHANNEL: Acquisition Deal Spurs S&P to Cut Ratings to BB+ LUCENT TECHNOLOGIES U.S. Congress Okays Merger with Alcatel MOSAIC COMPANY: Prices Units' Offer to Buy US$1.5-Bil Sr. Debts PERNOD RICARD: S&P Lifts Rating to BB+ on Business Integration POLYMER GROUP: Moody's Changes Outlook on Underperformance G E O R G I A VIMPEL-COMMUNICATIONS: Completes Armentel Acquisition Deal G E R M A N Y APPTIS INC: Moody's Rates Proposed $180MM Credit Facility at B1 BRUNS & HELD: Claims Registration Ends December 1 CLEMENS EVERS: Claims Registration Ends December 1 DIPL.-ING. EDUARD: Creditors' Meeting Slated for November 30 ENTRY FUNDING: Fitch Assigns B- Rating to EUR6-Mln Class F Notes LUKAS-BAU: Claims Registration Ends November 30 MARIO ELLERKAMM: Claims Registration Ends November 30 MEDIA-FORUM: Claims Registration Ends November 29 NWS ANLAGENBAU: Claims Registration Ends November 29 PR INDUSTRIEMONTAGE: Claims Registration Ends December 1 STEIERL FLEISCHWAREN: Claims Registration Ends December 1 USG CORP: Prices US$500 Mln 6.30% Notes at 99.9% of Principal VISTEON CORP: Seeks Lenders' Okay for US$100MM Additional Loan VOLKSWAGEN AG: Porsche Hikes VW Stake to 27.4%; Eyes More Equity WALLER WOHNUNGSBAU: Creditors' Meeting Slated for December 1 G R E E C E ANTENNA TV: S&P Cuts Rating to B+ on Weak Performance H U N G A R Y FLEXTRONICS INT'L: Eyes 30% Job Cuts in Nyiregyhaza Plant I R E L A N D BIOVAIL CORP: Moody's Revises Rating Outlook to Stable DELL INC: Looks to Release Third Quarter Results by Month's End I T A L Y M. FABRIKANT & SONS: Files Chapter 11 Petition in New York M. FABRIKANT & SONS: Case Summary & 45 Largest Unsec. Creditors NEWPARK RESOURCES: S&P Affirms B+ Rating on Weak Profitability * Italy Gas Supply Deals Pose Challenges, Fitch Says K A Z A K H S T A N AK OTAU: Almaty Court Opens Bankruptcy Proceedings ALMATINSKAYA GORODSKAYA: Claims Registration Ends Dec. 22 BASIS LLP: Karaganda Court Begins Bankruptcy Proceedings EXTRA DEALER: Creditors Must File Claims by Dec. 20 EURO GOLD: Proof of Claim Deadline Slated for Dec. 27 INTRACOM LLP: Claims Filing Period Ends Dec. 20 KANDYAGASH JYLU: Aktube Court Starts Bankruptcy Procedure KAZAKH OIL: Creditors' Claims Due Dec. 27 KUAT JETYSAI: Creditors Must File Claims by Dec. 27 MANGISTAU PROD: Proof of Claim Deadline Slated for Dec. 27 MASTER LLP: South Kazakhstan Court Starts Bankruptcy Procedure NURKAZGAN-SERVICE: Karaganda Court Opens Bankruptcy Proceedings PETROLEUM LLP: Claims Registration Ends Dec. 22 SHIPA SERVICE: Proof of Claim Deadline Slated for Dec. 20 TEMIR-SATU LLP: Karaganda Court Begins Bankruptcy Proceedings TRANSIT TRANS: Claims Filing Period Ends Dec. 27 VARTY PACIFIC: Creditors' Claims Due Dec. 22 K Y R G Y Z S T A N ROSSIYSKO-AZIATSKY DIESEL: Creditors' Claims Due Jan. 3, 2007 SUN LIGHT: Claims Registration Ends Dec. 29 URAL: Claims Filing Period Ends Dec. 29 L U X E M B O U R G DOV PHARMACEUTICAL: Sept. 30 Equity Deficit Widens to US$51 Mln N E T H E R L A N D S CANDIDE FINANCING: Moody's Rates EUR5-Mln Class E Notes at Ba3 DUCHESS VII: S&P Assigns BB- Rating on EUR15-Mln Class E Notes E-MAC PROGRAM: Fitch Gives BB Rating on EUR3.2-Mln Class E Notes HARBOURMASTER CLO: Fitch Rates EUR11.8-Mln Class E Notes at BB HIGHLANDER EURO: Moody's Assigns (P)Ba3 Rating on Class E Notes HIGHLANDER EURO: S&P Rates EUR24.5 Million Class E Notes at BB- LUCENT TECHNOLOGIES U.S. Congress Okays Merger with Alcatel POLYMER GROUP: Moody's Changes Outlook on Underperformance P O R T U G A L INTERTAPE POLYMER: Amends Debt Facilities to Ease Covenants R U S S I A BUILDER LLC: Court Names D. Natalkin as Insolvency Manager CASINO VENICE: Court Names D. Natalkin as Insolvency Manager CHEGDOMYSNKAYA FACTORY: Court Starts Bankruptcy Supervision CHUSOVSKIYE DIARY: Court Names Y. Svetlakov to Manage Assets EAR CJSC: Khabarovsk Court Names A. Krylov as Insolvency Manager GAS-PROM-OPTICS: Tyumen Bankruptcy Hearing Slated for Jan. 30 GAZPROM NEFT: Considers Joint Venture with OAO Lukoil GAZPROM NEFT: Completes Navigator.55 Program at Omsk Refinery GOLDEN TELECOM: Commences Internet Project in Nizhny Novgorod HEAT NETWORK: Court Starts Bankruptcy Supervision Procedure INKOR-INVEST: Court Names N. Pomelov as Insolvency Manager INTERNATIONAL CORP: Court Names M. Vasilega to Manage Assets INTER-SUGAR: Court Names L. Ponomareva as Insolvency Manager KHASYNSKIY FACTORY: Court Names V. Monastyrskiy to Manage Assets KRASNOGORSKOYE DSPMK: Court Starts Bankruptcy Supervision KOZHEVNIKOVO-GAS-SERVICE: Court Names I. Gorn to Manage Assets KURILOVSKOYE CJSC: Court Names A. Khromov as Insolvency Manager LENINGRADSKIY MAST-IMPREGNATION: Asset Sale Slated for Dec. 11 LUKOIL OAO: Considers Joint Venture with OAO Gazprom Neft LUKOIL OAO: Budgets US$27 Bln for Overseas Production Until 2017 MAGLAJN ITM: Bankruptcy Hearing Slated for March 13 MICHURISNKIY ECOLOGIST: Names V. Kuznetsov to Manage Assets MONOLITH LLC: Court Names A. Polishenko as Insolvency Manager MOSAIC COMPANY: Prices Units' Offer to Buy US$1.5-Bil Sr. Debts NEVO-WOOD CJSC: Court Names N. Dremanov as Insolvency Manager NORTH-WEST TRANSPORT-ENERGY: Names D. Natalkin to Manage Assets NOVAYA LLC: Kursk Court Names V. Selin as Insolvency Manager ROS-OIL-GAS-INTER-STROY: Court Starts Bankruptcy Supervision RUSSIAN CAPITAL: Court Names N. Dremanov as Insolvency Manager SERVICE CENTRE: Court Starts Bankruptcy Supervision Procedure SORTAVALSKIY FISHING: Court Names B. Remnev to Manage Assets TRANS-OIL-RESERVE: Court Names S. Suvorov as Insolvency Manager URMARSKIY DIARY: Court Names N. Ignatyev as Insolvency Manager VIMPEL-COMMUNICATIONS: Completes Armentel Acquisition Deal VOLGOGRAD-PROJECT-STROY: Court Starts Bankruptcy Supervision WORLD OF SEA: Kamchatka Bankruptcy Hearing Slated for Jan. 18 S P A I N AYT GENOVA: Moody's Rates EUR10.7-Mln Series D Notes at (P)Ba3 AYT GENOVA: Fitch Places BB Ratings on EUR10.7-Mln Class D Notes RURALPYME FTPYME: Fitch Junks EUR24.05-Mln Series D Notes SANTANDER CONSUMO: Moody's Junks EUR14.3-Mln Series F Notes SANTANDER CONSUMO: S&P Junks EUR14.3 Million Class F Notes U K R A I N E CENTRALNE ENTERPRISE: Court Starts Bankruptcy Supervision GENERALI GARANT: Moody's Lifts Financial Strength Rating to Ba3 GOLDEN TELECOM: Commences Internet Project in Nizhny Novgorod LIANKA LLC: Kyiv Court Names V. Sokotun as Insolvency Manager RAJAGROHIM OJSC: Vinnitsya Court Starts Bankruptcy Supervision REILROAD TIES: Kyiv Court Starts Bankruptcy Supervision ROXO LLC: Kyiv Court Names Ludmila Leluh as Insolvency Manager STYLE LLC: Court Names Oleg Linkevich as Insolvency Manager TELEHOUSE KYIV: Court Names O. Agafonov as Insolvency Manager TERNOPILLIFT: Ternopil Court Starts Bankruptcy Supervision UKRDRUK CJSC: Court Appoints V. Sokotun as Insolvency Manager VETA LLC: Dnipropetrovsk Court Starts Bankruptcy Supervision U N I T E D K I N G D O M ACORN JOINERY: Nominates Liquidators from Abbott Fielding ALAN T. CARR: Appoints Begbies Traynor as Administrators BERRIES WINE: Names Anthony David Kent Liquidator BLCS LIMITED: Taps Baker Tilly as Joint Administrators BLOCKBUSTER INC: Fitch Affirms Issuer Default Rating at CCC BROOKLANDS EURO: Fitch Affirmed Ratings for Class E Notes at BB BULL SEARCH: Brings In Liquidators from Mercer & Hole CLEAR CHANNEL: Inks US26.7-Bln Merger Deal with Private Equity CLEAR CHANNEL: Acquisition Deal Spurs S&P to Cut Ratings to BB+ COLLINS & AIKMAN: Wants Wachovia to Surrender Property COTT CORPORATION: Earns US$6.6 Million in 2006 Third Quarter CRYSTAL BUILD: Nominates Liquidators from Abbott Fielding DELL INC: Looks to Release Third Quarter Results by Month's End DURA AUTOMOTIVE: Gets Interim Nod to Pay Foreign Vendor Claims ENRON CORP: Reaches US$144,000,000 Settlement With Barclays PLC ERNEST S. TILL: Names Paul Michael McConnell as Administrator EUROPEAN SECURITY: J. N. Bleazard Leads Liquidation Procedure FLOWER TRENDS: Joint Liquidators Take Over Operations FORMULA FABRICATIONS: Taps Chris Williams to Liquidate Assets GOODYEAR TIRE: Meets with Union to Discuss New Labor Deal GOODYEAR TIRE: Fitch Junks US$1-Billion Senior Unsecured Notes GREAT HALL: Fitch Places BB Rating on GBP5.4-Mln Class E Notes GRESHAM CAPITAL: S&P Assigns B Rating on EUR12-Mln Class F Notes ICE ALLIANCE: Creditors Confirm Liquidator's Appointment INCO LTD: Common Stock Ceases Trading on NYSE JANUS SECURITY: Creditors Confirm Voluntary Liquidation KOHLICO TRADING: Appoints Administrators from Vantis Plc LISTAWOOD PROMOTIONAL: Brings In Administrators from Menzies MAINSTONE BUILDING: Claims Filing Period Ends Dec. 15 MASTER ROOM: Liquidators Set Dec. 3 Claims Bar Date PIARCO STRUCTURES: Brings In P&A to Administer Assets PLUMBING & MECHANICAL: Taps Michael Chamberlain as Administrator POLARIS FITNESS: Creditors Confirm Liquidators' Appointment PREMIER MAINTENANCE: Hires Liquidators from Recovery hjs PROPERTY CARE: Appoints David Field to Liquidate Assets REJUVE LIMITED: Hires Administrator from Valentine & Co SCOTTISH RE: Moody's Keeps Senior Unsecured Debt Rating at Ba3 SKYEPHARMA PLC: Abbott Acquires Licensee Kos Pharmaceuticals SNACK SOLUTIONS: Appoints Joint Administrators from DTE SPIRIT MENSWEAR: Names Ninos Koumettou as Administrator SPORT-LEICHT: Taps Alison M. Byrne to Administer Assets SWATCHMAKER LIMITED: Calls In Liquidator from Begbies Traynor THOMAS POTTER: Taps Tait Walker as Joint Administrators TIMBERTEC JOINERY: Brings In KPMG as Administrators TIPS & TOES: Creditors' Claims Due Jan. 1, 2007 VEDANTA RESOURCES: Moody's Reviews Ratings on Indian Investments VENDING LIMITED: Hires Kay Johnson Gee as Administrator VIENTIA DESIGN: Brings In Centrum Recovery as Administrator W. A. KELLY: Creditors Confirm Liquidator's Appointment WHITEHOUSE PRESSBRAKE: Taps Administrator from Findlay James * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= HERBOWITA LLC: Claims Registration Period Ends Nov. 28 ------------------------------------------------------ Creditors owed money by LLC Herbowita (FN 271968d) have until Nov. 28 to file written proofs of claims to court-appointed property manager Dominik Baurecht at: Mag. Dominik Baurecht c/o Dr. Wolfgang Gerhard Zorn Weihburggasse 4 1010 Vienna, Austria Tel: 533 66 61-77 Fax: 533 66 61-10 Email: baurecht@gnbz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Dec. 12 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 4 S 143/06s). Wolfgang Gerhard Zorn represents Mag. Baurecht in the bankruptcy proceedings. HRID LLC: Claims Registration Ends November 28 ---------------------------------------------- Creditors owed money by LLC HRID (FN 249214t) have until Nov. 28 to file written proofs of claims to court-appointed property manager Walter Kainz at: Dr. Walter Kainz c/o Dr. Eva Wexberg Gußhausstrasse 23 1040 Vienna, Austria Tel: 505 88 31 Fax: 505 94 64 Email: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 12 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 4 S 142/06v). Eva Wexberg represents Dr. Kainz in the bankruptcy proceedings. JOHANN BRUNNER: Creditors' Meeting Slated for November 28 --------------------------------------------------------- Creditors owed money by LLC Johann Brunner (FN 91286w) are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 28 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 Neuaigen, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 14 S 166/06m). Walter Anzboeck serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln, Austria Tel: 02272/61 600 Fax: 02272/61 600-20 E-mail: anwalt@anzboeck KRAINZ LLC: Property Manager Offers 2.57% Claims Recovery --------------------------------------------------------- Dr. Reinhard Teubl, the court appointed property manager of LLC Krainz (FN 207181d), offered a 2.57% recovery of creditors' claims. The Land Court of Leoben is yet to approve the property manager's decision. Headquartered in Kapfenberg, Austria, the Debtor declared bankruptcy on Oct. 14, 2005 (Bankr. Case No. 17 S 76/05b). The property manager can be reached at: Dr. Reinhard Teubl Mittergasse 28 8600 Bruck an der Mur, Austria Tel: 03862-51462 Fax: 03862-51462-10 E-mail: rechtsanwaelte@bzt.at THERAPIEGESELLSCHAFT KURHOTEL: Claims Registration Ends Nov. 30 --------------------------------------------------------------- Creditors owed money by LLC Therapiegesellschaft Kurhotel Jodschwefelbad (FN 246978d) have until Nov. 30 to file written proofs of claims to court-appointed property manager Thomas Mair at: Dr. Thomas Mair Kurhausstrasse 9 4820 Bad Ischl, Austria Tel: 06132/23517 Fax: 06132/23517-9 Email: thomas.mair@rechtsangelegenheiten.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Dec. 7 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Wels Hall 101 Wels, Austria Headquartered in Goisern, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 20 S 119/06k). ============= B E L G I U M ============= GOODYEAR TIRE: Meets with Union to Discuss New Labor Deal --------------------------------------------------------- The Goodyear Tire & Rubber Company disclosed Friday that bargaining teams from the company and the United Steelworkers met last week in Cincinnati. Goodyear presented copies of its latest proposals to the union's full bargaining committee. Goodyear reviewed its proposals in detail and responded to questions from the union's bargaining team. The union made no new proposals. The company said it is clear from the discussions that the two primary issues continue to be retiree health care and the announced closure of the Tyler, Texas plant. Dates for further meetings with the union have not been established. Goodyear's latest proposal can be viewed at: http://researcharchives.com/t/s?155c The United Steelworkers struck Goodyear on Oct. 5 after refusing to further extend a three-year master contract with the company. 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. 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-Europe on Oct. 27, Moody's Investors Service confirmed its B1 Corporate Family Rating for The Goodyear Tire & Rubber Company in connection with the rating agency's implementation of its new Probability-of- Default and Loss-Given-Default rating methodology for the U.S. Automotive and Equipment sectors. As reported in the TCR-Europe on Oct. 26, 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. GOODYEAR TIRE: Fitch Junks US$1-Billion Senior Unsecured Notes -------------------------------------------------------------- Fitch Ratings assigned debt and Recovery Ratings of CCC+/RR6 to US$1 billion of new private placement notes issued by The Goodyear Tire and Rubber Company. All ratings remain on Rating Watch Negative. The new debt includes US$500 million of three-year floating rate notes and US$500 million of five-year 8.625% notes. Proceeds will be used to refinance US$515 million of debt scheduled to mature by March 2007 and for general corporate purposes, including addressing the ongoing strike by the United Steelworkers union. Goodyear's existing debt and recovery ratings are: -- Issuer Default Rating 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; and -- Senior unsecured debt CCC+/RR6. Goodyear Dunlop Tires Europe B.V. (GDTE) -- EUR505 million European secured credit facilities BB/RR1. Fitch placed Goodyear's ratings on Rating Watch Negative on Oct. 18 following the company's US$975 million drawdown of its US$1.5 billion revolver, effectively using the remaining capacity under the revolver. The net addition of nearly US$500 million of debt, excluding debt to be refinanced, further supports GT's liquidity during the strike, which began Oct. 5. The Rating Watch Negative reflects business risks posed by the strike as well as concerns about GT's evolving financial position and liquidity as the strike continues. Demands on GT's cash include pension contributions, debt service requirements, potential cash requirements related to the resolution of the strike, uncertain access to any additional financing, and continued operating challenges with respect to the company's cost structure and raw material costs. The eventual outcome of the strike will be an important factor in resolving the rating watch. M. FABRIKANT & SONS: Files Chapter 11 Petition in New York ---------------------------------------------------------- M. Fabrikant & Sons, Inc., together with its domestic subsidiary, Fabrikant-Leer International, Ltd., filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The Company's foreign and domestic affiliates were not included in the Chapter 11 filing. The Company is expected to continue to operate its business during the pendency of this Chapter 11 case as a debtor in possession under the Bankruptcy Code. The Company expects a smooth transition into Chapter 11, with all of its facilities expected to remain open on normal schedules. Fabrikant has negotiated financing arrangements with its senior secured lenders that remain subject to court approval. Using the Chapter 11 process, Fabrikant plans to continue to pay employee wages and benefits and to honor the customer fulfillment obligations and programs for which the Company has become so well known, and to make uninterrupted payments to suppliers for goods and services. In addition, the Company continues to actively pursue a full range of strategic alternatives, including the sale or refinancing of the firm. Fabrikant believes that its Chapter 11 proceedings currently provide the best opportunity to maximize the value of its assets and its business for all stakeholders. Headquartered in New York City, M. Fabrikant & Sons, Inc. -- http://www.fabrikant.com/-- sells & distributes diamonds and jewelries. Established in 1895, the Company is one of the oldest diamond and jewelry wholesaler in the world, including Canada, China, Japan, Thailand, Israel, Belgium and Italy. M. FABRIKANT & SONS: Case Summary & 45 Largest Unsec. Creditors --------------------------------------------------------------- Lead Debtor: M. Fabrikant & Sons, Inc. One Rockefeller Plaza New York, NY 10020 Bankruptcy Case No.: 06-12737 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Fabrikant-Leer International, Ltd. 06-12739 Type of Business: The Debtors sell diamonds and jewelry. Established in 1895, the Company is one of the oldest diamond and jewelry wholesaler in the world, including Canada, China, Japan, Thailand, Israel, Belgium and Italy. See http://www.fabrikant.com/ Chapter 11 Petition Date: November 17, 2006 Court: Southern District of New York (Manhattan) Debtors' Counsel: Mitchel H. Perkiel, Esq. Troutman Sanders LLP 405 Lexington Avenue New York, NY 10174 Tel: (212) 704-6016 Fax: (212) 704-6288 Estimated Assets: More than $100 Million Estimated Debts: More than $100 Million A. M. Fabrikant & Sons, Inc.'s 25 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ ABN AMRO Bank N.V. Bank Debt $13,854,000 Pelikannstraat Street 70-76 2018 Antwerpen, Belgium Antwerpse Diamanbank NV Bank Debt $8,804,000 Pelikannstraat 54 B-2018 Antwerpen 1 Union Bank of Israel Bank Debt $7,870,000 Diamond Exchange Branch 3 Jabotinski Street P.O. Box 3006 Ramat Gan 52310 Israel H. Dipak & Co. Trade Debt $5,671,876 D-10, Road No-21, MIDC Andheri (E) Mumbai, 400 063 India Blue Star Trade Debt $5,554,113 312A Prasad Chambers, Opera House Mumbai, 400 004 India Hong Kong & Shanghai Bank Debt $4,509,000 Banking Corporation Limited HSBS Main Building 1 Queen Road Central Hong Kong Israel Discount Bank Bank Debt $3,396,000 Diamond Exchange Branch 3 Jabotinski Street Ramat Gan 52310 Israel K. Girdharlal International Trade Debt $2,288,357 Pvt Ltd 1003 Panchratna, Opera House Mumbai, 400 004 India K P Sanghvi & Sons Trade Debt $1,807,075 1301 Prasad Chambers Opera House Mumbai 400 004 India Bhavani Gems Trade Debt $1,479,016 101 Prasad Chambers M.P. Marg, Opera House, Bombay, 400 004 India Disons Gems, Inc. Trade Debt $1,341,372 22 West 48th Street Suite #300 New York, NY 10036 Chaim Ausch Diamonds Trade Debt $1,165,743 18 East 48th Street 4th Floor New York, NY 10017 Laxmi Diamond Trade Debt $1,052,886 416 Prasad Chamber, Opera House Mumbai, 400 004 India K.G.K. Enterprises Trade Debt $499,173 647 - A Panchratna Opera House Mumbai, 400 004 India M. Suresh & Co. Pvt. Ltd. Trade Debt $470,593 419 Parekh Market, Opera House Mumbai, 400 004 India Kiran Exports Trade Debt $439,266 109 Prasad Chambers Opera House Mumbai, 400 004 India Dhanraj Dhadda Exports Trade Debt $400,147 1208 Panchratna Opera house Mumbai, 400 004 India Shree Ramkrishna Export Trade Debt $392,461 214 Prasad Chambers Opera House Mumbai, 400 004 India Bluerays, Inc. Trade Debt $377,325 22 West 48th Street Suite #1006 New York, NY 10036 Impex Diamonds Trade Debt $317,658 302 Dharam Place 100/103 Hughes Road Mumbai, 400 007 India Asian Star Company Ltd. Trade Debt $308,295 114 Mittal Court-C Nariman Point Mumbai, 400 021 India Schain Leifer Guralnick Trade Debt $281,031 10 East 40th Street Suite 2710 New York, NY 10016-0348 Enlink Inc. Trade Debt $250,078 10 Parsonage Road Suite 312 Edison, NJ 08837 Diashine Exports Trade Debt $232,639 2504 Panchratna Opera house Mumbai, 400 004 India EMA Trade Debt $203,476 Molla Fenari MH. Vezirhan CD. #42/47 Cerberlitas 34120 Istanbul, Turkey B. Fabrikant-Leer International, Ltd.'s 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Vaishali Diamond Corp. Trade Debt $2,043,674 579 Fifth Avenue Suite 1475 New York, NY 10017 Providence Chain Co. Trade Debt $362,617 225 Carolina Avenue Providence, RI 02905-4538 Gramercy Jewelry Mfg. Corp. Trade Debt $214,755 115 West 30th Street 10th Floor new York, NY 10001 National Stampcast, Inc. Trade Debt $208,424 15 West 37th Street New York, NY 10018 Findings, Incorporated Trade Debt $200,700 P.O. Box 847440 Boston, MA 02284-7440 M&Z Creations, Ltd. Trade Debt $155,895 dba Ordan Corp. Suite 201 New York, NY 10036 JAH Advisors Inc. Services $109,600 1350 South Grandstaff Auburn, IN 46706 International Gemmological Trade Debt $85,957 Institute 589 Fifth Avenue 4th Floor New York, NY 10017 J.S.A. Jewelry, Inc. Trade Debt $81,510 10 West 47th Street, #1307 New York, NY 10036 C.D. Jewels Trade Debt $80,450 576 Fifth Avenue Suite 200-B New York, NY 10036 Leo Wolleman, Inc. Trade Debt $75,180 45 West 45th Street 10th Floor New York, NY 10036 Manufacturing USA Ent., Inc. Trade Debt $73,778 632 Irving Avenue Glendale, CA 91201 BK Jewelry Contractors, Inc. Trade Debt $63,411 64 West 48th Street Suite #600 New York, NY 10036 Companion Trading Co., Inc. Trade Debt $60,313 P.O. Box 580002 Flushing, NY 11358 R.S. Importing Ltd. Trade Debt $59,804 2 West 46th Street Suite 407 New York, NY 10036 Keystone Findings, Inc. Trade Debt $46,561 600 Emlen Way Telford, PA 18969 Fremada Gold Inc. '04 Trade Debt $40,505 2 West 45th Street Suite 1605 New York, NY 10036 Limited Parcel Service Services $35,255 P.O. Box 7247-0244 Philadelphia, PA 19170-0001 Pacific Northern, Inc. Trade Debt $30,707 3116 Belmeade Drive Carrollton, TX 75006 Real Gems, Inc. Trade Debt $29,245 18 East 48th Street Room 801 New York, NY 10017 ============= D E N M A R K ============= BLOCKBUSTER INC: Fitch Affirms Issuer Default Rating at CCC ----------------------------------------------------------- Fitch Ratings affirmed the ratings for Blockbuster Inc.: -- Issuer default rating CCC; -- Senior secured credit facility CCC/RR4; and -- Senior subordinated notes of CC/RR6. Fitch has also revised Blockbuster's Rating Outlook to Stable from Negative. Approximately US$1.2 billion of debt is affected by the action. The ratings continue to reflect ongoing credit concerns which include weak financial performance driven by pricing pressures which continue to limit margin expansion, difficult industry conditions, and intense competition from mass merchants, pay- per-view suppliers, and online retailers. The Stable Outlook reflects Blockbuster's improved financial flexibility, stronger liquidity position, and the company's cost cutting efforts that have enabled Blockbuster to improve Free Cash Flow despite ongoing revenue declines, and the Company's leading position in the rental entertainment industry. Importantly, Blockbuster's improved financial flexibility includes covenant relief over 2006 and 2007, a stronger liquidity position that has been aided by a US$150 million preferred stock offering and LTM free cash flow of approximately US$165 million. The stable outlook also reflects Fitch's belief that the Company will be able to meet its amended 2006 minimum EBITDA covenant of US$210 million. However, Blockbuster's revenue generation continues to be negatively affected from structural changes in the industry, competitive factors, and the company's strategic decision to eliminate late fees in 2005. Blockbuster's online movie rental business, which is subscription based and was launched in 2004, has not yet grown in size to offset competitive and industry factors. Despite these challenges, Blockbuster's operating margin and operating EBITDA showed some improvement through the first three quarters of 2006 as the company has significantly reduced its advertising budget and overhead spend. For the quarter ending Sept. 30, 2006, Blockbuster's operating margin was 0.1% versus - 25.3% for third quarter-2005. Operating EBITDA of US$64 million in the third quarter of 2006 reflected growth of 14% over US$56 million in 3Q'05. These positive variances reflect cost containment related to corporate overhead, lower store level compensation, and reduced advertising expenses. Fitch notes that the cost cutting strategy has driven better results however ongoing reduction of expenses like advertising may be disadvantageous in the long run as it does not help grow top line revenue. Nevertheless, Fitch expects margin and operating EBITDA improvement to continue in the historically strong fourth quarter Overall, Fitch remains concerned about Blockbuster's operational policies, which have included major changes to its business model in response to weakening market conditions. These changes include replacing lost revenue from the elimination of high margin late rental fees in 2005. Fitch views the elimination of late fees as particularly risky and challenging given that Blockbuster is now required to offset this source of operating profit with substantial increases in rental and merchandise revenues. This may continue to be difficult for Blockbuster due to price discounting employed by the company's online division and strong competition in the home video/DVD market from mass merchants. While Fitch recognizes that Blockbuster's online initiative has grown, Fitch notes that these revenues typically carry a lower gross margin, as do other areas such as video sales and game sales. This is important given Blockbuster's large fixed-cost base due to its real estate leases, especially if the online revenues cannibalize existing rental revenues. Blockbuster generated meaningful discretionary free cash flow over the last twelve months Sept. 30, 2006 due to the aforementioned cost cuts as well as lower capital expenditures offset by moderate working capital usage. As such, Blockbuster's free cash flow to total adjusted debt improved to 2.7% for LTM Sept. 30, 2006 from -3.4% for fiscal year 2005. Blockbuster improved its financial flexibility in the last twelve months by securing US$150 million in private equity funding and using the proceeds to pay off the balance on its revolving credit facility. Importantly, Blockbuster has had no borrowings on its facility for the last two quarters. Leverage as measured by total adjusted debt to operating EBITDAR strengthened from 7.8 times as of fiscal year 2005 to 6.7x as of LTM Sept. 30, 2006. Total debt to operating EBITDA also improved from 7.0x in fiscal year 2005 to 3.9x in LTM Sept. 30, 2006. Blockbuster's liquidity is improved and supported by cash balances of US$255 million at third quarter end and availability of US$293 million on its US$500 million secured revolving credit facility, which matures 2011. The secured credit facility has a covenant package with amendments related to minimum EBITDA levels, restricted payments, and future fixed charge coverage and leverage tests. Blockbuster has been in compliance with its amended covenants. In addition, Fitch notes that Blockbuster must continue to generate strong operating EBITDA in the coming year in order to meet the fixed charge covenant of 1.35x for any four consecutive fiscal quarters ending after Dec. 31, 2007. Fitch expects Blockbuster to continue reducing its fixed cost base and meet this covenant. =========== F R A N C E =========== ALCATEL SA: U.S. Congress Okays Merger with Lucent Technologies --------------------------------------------------------------- Alcatel S.A. and Lucent Technologies Inc. have received approval from the Committee on Foreign Investment in the United States, under provisions of the Exon-Florio amendment, to proceed with their proposed merger transaction. Alcatel and Lucent submitted a voluntary notice of the merger to CFIUS in August 2006. CFIUS prepared a recommendation on the merger transaction to the President of the United States in the final phase of the approval process and the President has accepted the CFIUS recommendation that he not suspend or prohibit the proposed merger transaction, provided that, in time periods specified, the companies execute a National Security Agreement and Special Security Agreement to which they have agreed with U.S. Government agencies. Alcatel and Lucent will execute within the specified time periods the National Security Agreement and Special Security Agreement to which they have previously agreed with U.S. Government agencies. The companies are moving quickly to finalize the transaction and expect to complete the merger on Nov. 30, 2006, which is within the six-to twelve-month timeframe originally announced April 2, 2006. About Lucent Technologies Headquartered in Murray Hill, New Jersey, Lucent Technologies (NYSE: LU) -- http://www.lucent.com/-- designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Lucent also operates in Austria, Belgium, China, Czech republic, Denmark, France, Germany, India, Ireland, Japan, Korean, Brazil, CIS, the Netherlands, Poland, Slovak Republic, Spain, Sweden, Switzerland, Russia, and the United Kingdom. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: Installs Message Delivery System at Citigroup --------------------------------------------------------- Alcatel S.A. reveals the deployment by Citigroup of its Automated Message Deliver System, a new generation of SIP, premise-based broadcast voice messaging solutions, providing an alternative to expensive, proprietary, hardware products and costly outbound dialer services. AMDS is a browser-based interface, delivered on Alcatel's Advanced Communications Server platform, the same server supporting the award-winning My Teamwork unified conferencing and collaboration solution. Citigroup, one of the world's pre-eminent financial services companies, with some 200 million customer accounts in more than 100 countries, uses AMDS within its Global Equities Division to send on average 5,000 messages nightly. Currently 1,500 research and sales analysts in North America, Europe and Asia Pacific use the solution to manage and distribute investment information both internally and externally. Citigroup sales traders use AMDS to manage their daily client investment updates, reducing their call time in half. The solution, embedded in Citibank's CRM interface, replaces 3rd party broadcast voicemail and saves money by enabling Citigroup to manage its broadcast messaging activity in-house with full compliance and reporting mechanisms. "Sales is a highly voicemail-driven business in the investment banking world, making AMDS invaluable for Citigroup staff," said Dan Hollins, Assistant Vice President and Business Analyst, in Citigroup's Global Equities Division. "For Citigroup, the cost savings is significant but the real business benefit of this product is an increase in productivity and time to market-being able to reach more clients faster." "AMDS demonstrates Alcatel's ongoing leadership role in the global telephony market where Alcatel consistently delivers innovative software applications that provide solutions to real customer issues. " said Jean-Christophe Giroux, President of Alcatel enterprise solutions activities. "AMDS addresses a need for enterprises, professional services, and government agencies to communicate critical information to customers and citizens in a cost-effective, timely manner. AMDS is a cost effective, simple to deploy and tangible value-added solution that delivers immediate results for our customers." Alcatel's AMDS uses industry-standard platforms resulting in a low cost entry point with secure access to voice broadcast management from any PC, inside or outside the firewall. With carrier-grade availability and scalability, AMDS can deliver thousands of voice messages daily for attended or unattended delivery of broadcasts. Maintenance costs are also minimized as enhancements and scalability-from several to thousands of ports- is handled via software upgrades and licensing. AMDS is available as a standalone product with connectivity to any PBX or PSTN using TDM and/or SIP telephony interfaces. Software license pricing and packaging ensures the ability to easily scale the system based on the dynamics of individual business needs as message volume increases. Administration and management simplicity is further demonstrated by the use of a browser based client ensuring "zero foot print" deployment. Additionally, the platform software XML APIs enable the ability to integrate to existing customer enterprise applications and create customized functionality when required. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. CLEAR CHANNEL: Inks US26.7-Bln Merger Deal with Private Equity -------------------------------------------------------------- Clear Channel Communications Inc. executed a definitive merger agreement with a group led by Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC, pursuant to which the group will acquire Clear Channel in a transaction with a total value of approximately US$26.7 billion, including the assumption or repayment of approximately US$8 billion of net debt. Under the terms of the agreement, Clear Channel shareholders will receive US$37.60 in cash for each share of Clear Channel common stock they hold, representing a premium of approximately 25% over Clear Channel's average closing share price of US$29.99 during the 30 trading days ended Oct. 24, 2006, the day before the Company first acknowledged that it was evaluating strategic alternatives. Morgan Stanley, Citigroup, and Deutsche Bank as well as Credit Suisse, RBS and Wachovia are acting as financial advisors and providing firm financing commitments to the private equity group. Morgan Stanley, Citigroup, Deutsche Bank, Credit Suisse and RBS are also providing equity commitments. The board of directors of Clear Channel, with the interested directors recused from the vote, has unanimously approved the merger agreement and has resolved to recommend that Clear Channel's shareholders adopt the agreement. A special advisory committee consisting of disinterested directors unanimously determined the terms of the transaction to be fair. Mark P. Mays, the Chief Executive Officer of Clear Channel, said, "We are very pleased to announce this transaction which provides substantial value to our shareholders. We look forward to working with Thomas H. Lee Partners and Bain Capital Partners to continue our business plan to provide exceptional programming to our audiences and value to our advertising partners." Scott Sperling, Co-President of Thomas H. Lee Partners, stated, "Clear Channel is one of the nation's truly great companies that has the finest collection of outdoor and radio assets in the industry. We are extremely pleased to be partnered with the management team led by Mark and Randall Mays and to have the opportunity to work with them and to grow this company that was created by its Chairman and founder, L. Lowry Mays. Clear Channel has tremendous long term growth opportunities in both the radio and outdoor businesses and we look forward to partnering with Mark and Randall to create value in the years ahead." John Connaughton, a Managing Director at Bain Capital, said, "We are very impressed with Clear Channel's strong management team and the company's leadership positions in a variety of markets and media formats. Clear Channel is an exceptional media franchise that is well-positioned to grow thanks to the solid foundation the Mays family has created. We look forward to partnering with Clear Channel as it continues to innovate in meeting the changing needs of the audiences and advertisers it serves." The merger does not require the consent of unsecured note holders and is not conditioned upon a merger, consolidation or going private transaction involving Clear Channel Outdoor Holdings, Inc. The merger is subject to the approval of Clear Channel's shareholders, requisite regulatory approvals and customary closing conditions. Under the merger agreement, Clear Channel may solicit competing bids from third parties through Dec. 7, 2006, and may negotiate with parties that submit competing proposals by that time until Jan. 5, 2007. Clear Channel may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals. If Clear Channel accepts a superior proposal, a break up fee would be payable by the Company. There can be no assurance that the solicitation of proposals will result in any alternative transaction. At the request of the disinterested directors, three members of senior management have agreed to significantly reduce payments that could be payable upon a change of control by an amendment to their employment agreements. Clear Channel also disclosed that it intends to solicit buyers for 448 radio stations in selected small markets as well as for its television broadcasting division. The merger is not conditioned on the consummation of any of these sale transactions. Goldman, Sachs & Co. is acting as exclusive financial advisor to Clear Channel and Lazard Freres & Co. LLC is acting as financial advisor to the special advisory committee. Goldman, Sachs & Co. and Lazard Freres & Co. LLC have each delivered a fairness opinion to the Board and special advisory committee, respectively. Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor for Clear Channel and Sidley Austin LLP is acting as legal advisor for the special advisory committee. Ropes & Gray LLP and Dow Lohnes PLLC are serving as legal advisors to the private equity group. About Bain Capital Partners, LLC Headquartered in Boston, Massachusetts, Bain Capital -- http://www.baincapital.com/-- is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with more than US$40 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 230 companies around the world, including investments in a broad range of companies such as Burger King, Warner Chilcott, Toys "R" Us, AMC Entertainment, Sensata Technologies, Burlington Coat Factory and ProSiebenSat1 Media. It has offices in New York, London, Munich, Tokyo, Hong Kong and Shanghai. About Thomas H. Lee Partners, LP Thomas H. Lee Partners, L.P. is one of the oldest and most successful private equity investment firms in the United States. Since its founding in 1974, THL Partners has become the preeminent growth buyout firm, investing approximately US$12 billion of equity capital in more than 100 businesses with an aggregate purchase price of more than US$100 billion, completing over 200 add-on acquisitions for portfolio companies, and generating superior returns for its investors and partners. The firm currently manages approximately US$20 billion of committed capital. Notable transactions sponsored by the firm include Dunkin Brands, VNU, Michael Foods, Houghton Mifflin Company, Fisher Scientific, Experian, TransWestern, Snapple Beverage and ProSiebenSat1 Media. About Clear Channel Communications Headquartered in San Antonio, Texas, Clear Channel Communications, Inc. (NYSE:CCU) -- http://www.clearchannel.com/ -- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. In Europe, it maintains operations in France and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Moody's Investors Service placed the (P)Ba2 Multiple Seniority Shelf Rating for Clear Channel Communications Inc. on review for possible downgrade. CLEAR CHANNEL: Acquisition Deal Spurs S&P to Cut Ratings to BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'BB+' from 'BBB-'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. The downgrade and continuing CreditWatch status followed its announcement of a definitive agreement to be acquired in an LBO by a group of investors led by Bain Capital Partners LLC and Thomas H. Lee Partners L.P. for US$36.70 a share, or approximately US$18.7 billion. The total value of the transaction is approximately US$26.7 billion, including the assumption of the company's outstanding US$8 billion of net debt. The merger is subject to the agreement of Clear Channel's shareholders and regulatory approval. "Although the company has not announced specific financing terms of the new capital structure, we would expect a marked increase in leverage, which is likely to result in even further ratings downside potential," said Standard & Poor's credit analyst Michael Altberg. "Even if the deal does not close, which we believe is a relative low probability at this juncture, Clear Channel has demonstrated an appetite for a higher level of risk." Accordingly, the financial policy expectations of Standard & Poor's have changed, warranting a lower corporate credit rating. The acquisition announcement comes on the heels of a number of shareholder-favoring initiatives undertaken by Clear Channel. Standard & Poor's will review its ratings on Clear Channel when the new capital structure is announced and the rating agency can gain greater clarity on the amount of equity that investors would contribute in financing the proposed acquisition. LUCENT TECHNOLOGIES U.S. Congress Okays Merger with Alcatel ------------------------------------------------------------ Alcatel S.A. and Lucent Technologies Inc. have received approval from the Committee on Foreign Investment in the United States, under provisions of the Exon-Florio amendment, to proceed with their proposed merger transaction. Alcatel and Lucent submitted a voluntary notice of the merger to CFIUS in August 2006. CFIUS prepared a recommendation on the merger transaction to the President of the United States in the final phase of the approval process and the President has accepted the CFIUS recommendation that he not suspend or prohibit the proposed merger transaction, provided that, in time periods specified, the companies execute a National Security Agreement and Special Security Agreement to which they have agreed with U.S. Government agencies. Alcatel and Lucent will execute within the specified time periods the National Security Agreement and Special Security Agreement to which they have previously agreed with U.S. Government agencies. The companies are moving quickly to finalize the transaction and expect to complete the merger on Nov. 30, 2006, which is within the six-to twelve-month timeframe originally announced April 2, 2006. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. About Lucent Technologies Headquartered in Murray Hill, New Jersey, Lucent Technologies (NYSE: LU) -- http://www.lucent.com/-- designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Lucent also operates in Austria, Belgium, China, Czech republic, Denmark, France, Germany, India, Ireland, Japan, Korean, Brazil, CIS, the Netherlands, Poland, Slovak Republic, Spain, Sweden, Switzerland, Russia, and the United Kingdom. * * * As reported in the TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to the Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. MOSAIC COMPANY: Prices Units' Offer to Buy US$1.5-Bil Sr. Debts --------------------------------------------------------------- The Mosaic Company has priced the previously announced tender offers and consent solicitations by its subsidiaries: * Mosaic Global Holdings Inc., to purchase for cash any and all of its: -- 6.875% Debentures due 2007, -- 10.875% Senior Notes due 2008, -- 11.250% Senior Notes due 2011, -- 10.875% Senior Notes due 2013; and * Phosphate Acquisition Partners L.P. to purchase for cash any and all of its 7% Senior Notes due 2008. The terms of the tender offers and consent solicitations for the debt securities are detailed in Mosaic Global Holdings Inc.'s and Phosphate Acquisition Partners L.P.'s respective Offer to Purchase and Consent Solicitation Statements, each dated Oct. 31, 2006. The total consideration for each US$1,000 principal amount of the 2011 Notes validly tendered and not withdrawn at or prior to 5:00 p.m. New York time on Nov. 14, is US$1,058.75, which includes a consent payment of US$2.50. The total consideration for each of the remaining senior notes and debentures validly tendered and not withdrawn at or prior to the Consent Date was determined as of 2:00 p.m., New York City time, on Nov. 14, 2006, using the yield on the applicable U.S. Treasury Security, as calculated by the Dealer Manager and Solicitation Agent in accordance with standard market practice, based on the bid-side price for such applicable U.S. Treasury Note. The total consideration for each US$1,000 principal amount of the 2007 Debentures validly tendered prior to the Consent Date was determined using the yield on the 3-7/8% U.S. Treasury Security due July 31, 2007 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 3-7/8% U.S. Treasury Security at the Time of Pricing was 5.047%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2007 Debentures validly tendered and not withdrawn at or prior to the Consent Date is US$1,007.93, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2007 Debentures validly tendered after the Consent Date but at or before the "Expiration Date" is US$977.93, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the MGH 2008 Notes validly tendered prior to the Consent Date was determined using the yield on the 4-7/8% U.S. Treasury Security due May 31, 2008 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 4-7/8% U.S. Treasury Security at the Time of Pricing was 4.810%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of MGH 2008 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,079.23, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of MGH 2008 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$1,049.23, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the 2013 Notes validly tendered prior to the Consent Date was determined using the yield on the 3-1/4% U.S. Treasury Security due August 15, 2008 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 3-1/4% U.S. Treasury Security at the Time of Pricing was 4.753%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2013 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,138.33, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2013 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$1,108.33, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the PAP 2008 Notes validly tendered prior to the Consent Date was determined using the yield on the 3% U.S. Treasury Security due February 15, 2008 at the Time of Pricing plus a fixed spread of 30 basis points. The yield on the 3% U.S. Treasury Security at the Time of Pricing was 4.900%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of the PAP 2008 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,020.66, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of the PAP 2008 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$990.66, which equals the total consideration less the consent payment. The offers will expire at midnight, New York City time, on November 29, 2006, unless extended by Mosaic Global Holdings or Phosphate Acquisition Partners, as applicable, in its sole discretion. The consummation of the tender offers is subject to several conditions, including the receipt of net proceeds from financings sufficient to pay for Senior Notes and Debentures accepted in the tender offers. Senior Notes and Debentures tendered prior to the Consent Date may not be withdrawn after the Consent Date unless Mosaic Global Holdings or Phosphate Acquisition Partners, as applicable, reduces the amount of the tender offer consideration, the consent payment or the principal amount of Senior Notes or Debentures subject to the offers or is otherwise required by law to permit withdrawal. The offers are made upon the terms and subject to the conditions set forth in the Offers to Purchase and Consent Solicitation Statements dated October 31, 2006 that have been distributed to registered holders of the debt securities. Copies of the Offer to Purchase and Consent Solicitation Statements can be obtained from: MacKenzie Partners, Inc. Attention: Jeanne Carr or Simon Coope Phone: (800) 322-2885 None of The Mosaic Company, Mosaic Global Holdings Inc., Phosphate Acquisition Partners L.P., J.P. Morgan Securities Inc., as the Dealer Manager and Solicitation Agent, or the Information Agent/Depositary makes any recommendation as to whether or not holders should sell their Senior Notes or Debentures pursuant to the offers, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decision as to whether to sell Senior Notes and Debentures, and if so, the principal amount of Senior Notes and Debentures to sell. Questions concerning the terms of the offers may be directed to: J.P. Morgan Securities Inc. Dealer Manager and Solicitation Agent Attention: Laura Yachimski Phone: (212) 270-3994 (call collect) Questions concerning procedures regarding the offers may be directed to MacKenzie Partners. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in the Ukraine, France and Russia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 14, Standard & Poor's Ratings Services revised its outlook on The Mosaic Co. to negative from stable. Standard & Poor's affirmed its 'BB' long-term and 'B-1' short-term corporate credit ratings on the company. As reported in the TCR-Europe on Nov. 9, 2006, Fitch assigned a 'BB' rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a 'BB+' rating to the company's proposed senior secured term loans. The ratings affected approximately US$950 million of new senior notes and US$1.05 billion of new term loans. Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. Moody's said the ratings outlook is stable. PERNOD RICARD: S&P Lifts Rating to BB+ on Business Integration -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on French spirits manufacturer and marketer Pernod Ricard S.A. to 'BB+' from 'BB' following quicker-than-expected integration of acquired businesses and improved profitability prospects. At the same time, the 'B' short-term corporate credit rating was affirmed. The outlook is stable. "The upgrade follows Pernod's completion, ahead of expectations and below estimated costs, of the integration of acquired Allied Domecq Ltd. Businesses," said Standard & Poor's credit analyst Vincent Allilaire. Pernod will unlock about EUR300 million in expected cost synergies in its current financial year ending June 30, 2007. Although interest expenses, residual integration costs, and working-capital requirements will continue to constrain free cash flow generation over the short term, increased profitability and organic growth are set to swiftly improve the group's financial profile, in line with the ratings, from the currently still-weak position. The group's adjusted net debt at end-June 2006 amounted to EUR7.6 billion, or 5.7x EBITDA (including only 11 months of contributions from Allied Domecq operations). "We expect that Pernod's higher profitability will help improve cash flow generation over time, but opportunistic debt-financed acquisitions are likely to constrain improvement of the financial profile," added Mr. Allilaire. "We also expect Pernod to sustain sales momentum at least in line with industry trends, notwithstanding its exposure to currently sluggish European markets and ongoing repositioning of the former Allied Domecq brands, while strengthening profitability through economies of scale and product mix improvement." The ratings could be raised if the group chooses to sustain, through its acquisition cycle, leverage significantly less than 5x fully adjusted net debt to EBITDA, which S&P does not expect at this stage. The ratings might come under pressure if the group loses sales momentum, or fails to sustain leverage at 5x, or FFO to net debt of about 15%, irrespective of acquisitions and currency or performance fluctuations. POLYMER GROUP: Moody's Changes Outlook on Underperformance ---------------------------------------------------------- Moody's Investors Service changed the rating outlook of Polymer Group, Inc. to negative from stable. The change in outlook reflects the company's performance at levels, which are below Moody's expectations from the time of its prior review in November 2005. Specifically, the change in outlook expresses concern regarding negative cash flow generation, potentially narrow cushions under financial covenants, weakness in demand in certain segments and the effect of lags in passing on increases to converters in a rising raw material price environment, which resulted in substantive reductions in gross margins in 2006. Moody's is also concerned that such challenges will be harder to manage at a time when top management is in transition. Notwithstanding high financial leverage, weak interest coverage and weaker than expected cash flow generation in 2006 for the rating category, the B1 ratings remain supported by PGI's competitive strengths, multi-year contracts (some indexed to raw materials), long-standing customer relationships and Moody's assessment of overall enterprise value in relation to debt levels. The ratings are further supported by the successful completion of several capital projects, including the expansion of the company's manufacturing capacity in Suzhou, China and North Carolina, US in 2006 and the potential contribution from these assets in 2007 and beyond. The ratings reflect pricing and volume constraints imposed by intense competition in both nonwovens and oriented polymers from often larger and financially stronger companies. The ratings are further constrained by business requirements for substantial and ongoing capital expenditures (including a growth component) to maintain, improve and expand manufacturing facilities, as well as weak interest coverage for the rating category. Continuing negative or weak cash flow metrics, significant debt- financed acquisitions and lack of progress toward improved total leverage metrics could result in a downgrade. If the company is able to execute on existing investments in emerging markets thereby improving free cash flow to debt ratios to about 5% on a sustainable basis, this could stabilize the ratings outlook. Meaningful steps toward debt reduction resulting in adjusted debt to EBITDA ratios below 4 times and improved EBIT to interest coverage above 1.5 times could result in improvements in rating outlook or eventually to an upgrade. The negative outlook applies to these ratings: -- B1 (LGD3, 33%) rated US$45 million senior secured revolver due 2010; -- B1 (LGD3, 33%) rated US$410 million senior secured term loan B due 2012; -- B1 Corporate Family Rating; and -- B2 Probability of Default Rating. The outlook for the ratings was changed to negative from stable. Headquartered in Charlotte, North Carolina, Polymer Group, Inc., is one of the world's leading producers of nonwovens and produces and markets engineered materials. PGI is a global supplier to leading consumer and industrial product manufacturers, including Procter & Gamble and Johnson & Johnson. PGI's spunmelt and spunlace products are engineered to specification and sold principally to converters that manufacture a wide range of end-use products, including, for example, disposable diapers, wipes, surgical gowns, wound care dressings and protective apparel. Durable uses include furniture and bedding, electrical insulation and geotextiles. The company operates 22 manufacturing facilities in 10 countries throughout the world. Net revenues for the twelve months ended Sept. 30, 2006 were about US$1 billion. ============= G E O R G I A ============= VIMPEL-COMMUNICATIONS: Completes Armentel Acquisition Deal ---------------------------------------------------------- OJSC Vimpel-Communications concluded a deal to acquire Hellenic Telecommunications Organization's 90% stake in CJSC Armenia Telephone Company for EUR341.9 million, including the assumption of EUR40 million in debts, RIA Novosti says. The parties finalized the deal after Armenia's public services regulation authorities approved the sale on Nov. 14. The deal formalizes Vimpelcom's entry into the Armenian telecommunications market, capturing an existing 600,000 fixed- line and 400,000 mobile service subscribers through the GSM 900 and CDMA standards. Andrei Bliznyuk, Vimpelcom's nominee for the director post at Armentel, said the company would invest US$100 million in the Armenian telecom sector in 2007. Vimpelcom bested fellow bidders MTC, ETISALAT, VTEL Holdings and Knightsbridge Associates in a tender launched by OTE. As reported in the TCR-Europe on Nov. 13, the Armenian government is selling its 10% stake in Armentel to Vimpelcom. A sale, however, hinges on the condition that Vimpelcom discard further expansion plans in the country, Communications Minister Andranik Manukyan told RIA Novosti. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in the TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel- Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. ============= G E R M A N Y ============= APPTIS INC: Moody's Rates Proposed $180MM Credit Facility at B1 --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the proposed $180 million credit facility of Apptis, Inc. Despite a sizable amount of the net proceeds being used to return capital to its financial sponsor, New Mountain Capital, LLC, Moody's affirmed the B2 corporate family rating. Apptis is undertaking a recapitalization to: -- repay outstandings of US$77 million under its existing credit facility; -- fully retire US$50 million of the existing senior subordinated cash pay notes held by the Sponsor; -- partially repay approximately US$20.5 million of senior subordinated payment-in-kind notes and related accrued interest also held by the Sponsor; and -- pay related fees and expenses. The transaction is being financed with proposed credit facilities that include a US$30 million senior secured first lien revolver and a US$150 million senior secured first lien term loan. Moody's took these actions: -- US$30 million proposed senior secured first lien revolver maturing 2011, assigned B1, LGD3, 33% -- US$150 million proposed senior secured first lien term loan B due 2012, assigned B1, LGD3, 33% -- Corporate Family Rating, affirmed B2 -- Probability of Default Rating, affirmed B2 -- Ratings for the prior $107 million credit facility, rated Ba2, are to be withdrawn upon conclusion of the proposed transaction. The ratings outlook is stable. The ratings are subject to the conclusion of the proposed transactions and Moody's review of final documentation. The affirmation of the B2 Corporate Family Rating continues to acknowledge Apptis' stable business as evidenced by strong win and retention rates on government contracts. This track record helps to allay some concern regarding the meaningful amount of contracts up for recompete within the next year. Other business concerns reflected in the B2 corporate family rating include a high concentration of revenue, Apptis' small revenue base -- notably when compared to its high debt burden, and the inherent exposure to delays or reduction in federal spending, which is prevalent in the government contract services business industry-wide. The sizable return of capital to the financial sponsor of approximately $70 million puts downward pressure on the ratings as pro forma adjusted leverage is expected to be approximately 5.7 times while year to date EBIT and EBITDA are below original expectations. The B1 rating on the senior secured credit facility reflects the facility's priority position in the capital structure and a Loss Given Default assessment of LGD3, 33%. The credit facility has a first priority perfected lien on all the capital stock and tangible and intangible assets of the borrower, Apptis, Inc., and its parent and subsidiaries. The rating on the credit facility benefits from the loss absorption provided by the $43 million PIK mezzanine notes at Apptis Holdings, Inc., the company's parent, which are expected to remain pro forma for the proposed transaction. The credit facility is guaranteed by the company's parent and all existing and future subsidiaries. The stable ratings outlook reflects Moody's expectation that Apptis will grow its services revenue, maintain positive free cash flow and use excess cash to reduce borrowings under its secured credit facility. In Moody's opinion, there is some room under pro forma credit statistics to absorb some negative variance without triggering a downgrade of the ratings. Sustained financial performance above current expectations resulting in adjusted debt to EBITDA at or below 4.5x, free cash flow to adjusted debt ranging between 7% and 10%, and evidence of maintaining adjusted EBIT to cash interest above 2x could result in a positive change in the outlook or ratings. The outlook or ratings could be lowered if Apptis loses a significant contract, otherwise experiences operational challenges, or pursues financial policies that result in adjusted debt to EBITDA rising above 6x and adjusted EBIT to cash interest falling below 1.5x. Apptis, headquartered in Chantilly, Virginia, provides information technology services and solutions primarily to federal government agencies. The company's core capabilities include software development and engineering, network infrastructure deployment and support services, and product fulfillment. Revenue for the twelve months ended June 2006 was approximately $303 million. BRUNS & HELD: Claims Registration Ends December 1 ------------------------------------------------- Creditors of Bruns & Held Verwaltungs GmbH have until Dec. 1 to register their claims with court-appointed provisional administrator Thilo Streck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 3, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Bruns & Held Verwaltungs GmbH on Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Bruns & Held Verwaltungs GmbH Attn: Michael Bruns and Sven-Peter Held, Managers Mönckebergstrasse 7 20095 Hamburg, Germany The administrator can be contacted at: Dr. Thilo Streck Neuer Wall 86 20354 Hamburg, Germany CLEMENS EVERS: Claims Registration Ends December 1 -------------------------------------------------- Creditors of Clemens Evers GmbH & Co. KG Hobby- und Kuenstlerbedarf have until Dec. 1 to register their claims with court-appointed provisional administrator Joerg Trittermann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 3, 2007, 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 Braunschweig E 01 Martinikirche 8 38100 Braunschweig, 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 Braunschweig opened bankruptcy proceedings against Clemens Evers GmbH & Co. KG Hobby- und Kuenstlerbedarf on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Clemens Evers GmbH & Co. KG Hobby- und Kuenstlerbedarf Attn: Clemens Evers, Manager Ruhfautchenplatz 2 38100 Braunschweig, Germany The administrator can be contacted at: Joerg Trittermann Lessingplatz 9 D-38100 Braunschweig, Germany Tel: 0531/1206875 Fax: 0531/1206880 DIPL.-ING. EDUARD: Creditors' Meeting Slated for November 30 ------------------------------------------------------------ The court-appointed provisional administrator for Dipl.-Ing. Eduard Horn Haus- und Bodenanlagen KG, Christoph Rosenmueller, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:10 a.m. on Nov. 30. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on March 8, 2007, at the same venue. Creditors have until Jan. 11, 2007, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Dipl.-Ing. Eduard Horn Haus- und Bodenanlagen KG on Oct. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dipl.-Ing. Eduard Horn Haus- und Bodenanlagen KG Leonhardstr. 20 14057 Berlin, Germany Attn: Steuerbuero Tober, Manager Taubertstr. 6-8 14193 Berlin, Germany The administrator can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin, Germany ENTRY FUNDING: Fitch Assigns B- Rating to EUR6-Mln Class F Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to Entry Funding No. 1 Plc's issue of EUR400.5 million of floating-rate notes: -- EUR357,500,000 Class A: AAA; -- EUR8,000,000 Class B: AA; -- EUR8,900,000 Class C: A; -- EUR10,000,000 Class D: BBB; -- EUR11,000,000 Class E: BB; and -- EUR6,000,000 Class F: B-. This transaction is a cash securitization of loans certified by certificates of indebtedness to German small and medium-size enterprises. The transaction is the first true-sale securitization of LBBW-originated loans to small and medium sized enterprises. The final ratings are contingent upon the receipt of final documents conforming to information already received. The expected ratings of the Class A notes address the timely payment of interest and the ultimate repayment of principal. The expected ratings of the Class B to Class F notes address the ultimate payment of interest and principal according to the terms of the notes. Under the cash flow scenarios applied, the Class B to Class F notes are able to receive timely payment of interest. The expected ratings are based on the quality of the collateral, the available credit enhancement, the priority of payments, and the sound legal and financial structure of the transaction. Credit enhancement for the Class A to E notes is provided by subordination, the reserve account and available excess spread. Credit enhancement for the Class F notes is provided by the reserve account and excess spread. The scheduled maturity of all Classes of notes is September 2011, and the legal maturity is September 2013. The portfolio comprises senior unsecured loan instruments that are either amortizing or have a bullet maturity. The loans have been specifically designed to be refinanced via a securitization and therefore contain standardized characteristics. The transaction will be static and will amortize relatively quickly, with a weighted average life of around 3.6 years. To assess the credit quality of the portfolio, Fitch used a mapping approach to LBBW's internal rating system. Based on the mapping, the agency deems the average credit quality of the SME portfolio to be equivalent to a rating of BBB-/BB+. LUKAS-BAU: Claims Registration Ends November 30 ----------------------------------------------- Creditors of Lukas-Bau GmbH have until Nov. 30 to register their claims with court-appointed provisional administrator Siegfried Mueller. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Jan. 17, 2007, 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 Bonn Meeting Room W1.24C 1st Floor William Route 23 53111 Bonn, 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 Bonn opened bankruptcy proceedings against Lukas-Bau GmbH on Oct. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Lukas-Bau GmbH Oberburg 2 53894 Mechernich, Germany Attn: Wilhelm Wirth, Manager Fliederweg 29 53919 Weilerswist, Germany The administrator can be contacted at: Siegfried Mueller Markt 10 53894 Mechernich, Germany MARIO ELLERKAMM: Claims Registration Ends November 30 ----------------------------------------------------- Creditors of Mario Ellerkamm und Sven Schwalbe GbR have until Nov. 30 to register their claims with court-appointed provisional administrator Henning Jung. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 17, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Kassel opened bankruptcy proceedings against Mario Ellerkamm und Sven Schwalbe GbR on Sept. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mario Ellerkamm und Sven Schwalbe GbR Attn: Mario Ellerkamm and Sven Schwalbe, Managers Osterholzstrasse 17 34123 Kassel, Germany The administrator can be contacted at: Henning Jung Wilhelmshoeher Avenue 270 34131 Kassel, Germany Tel: 0561/3166311 Fax: 0561/3166312 E-mail: ks@leonhardt-westhelle.eu MEDIA-FORUM: Claims Registration Ends November 29 ------------------------------------------------- Creditors of MEDIA-FORUM Weiterbildung und Verlag Gemeinnuetzige GmbH have until Nov. 29 to register their claims with court- appointed provisional administrator Dirk Hammes. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Jan. 10, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Meeting Room C315 3rd Floor Cardinal Galen Road 124-132 47058 Duisburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duisburg opened bankruptcy proceedings against MEDIA-FORUM Weiterbildung und Verlag Gemeinnuetzige GmbH on Oct. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: MEDIA-FORUM Weiterbildung und Verlag Gemeinnuetzige GmbH Business Center 2000 Friedrich-Alfred-Str. 182-184 47226 Duisburg, Germany Attn: Karl-H. Joeres, Manager Friedrich-Alfred-Str. 182-184 47228 Duisburg, Germany The administrator can be contacted at: Dirk Hammes Wilhelmshofallee 75 47800 Krefeld, Germany NWS ANLAGENBAU: Claims Registration Ends November 29 ---------------------------------------------------- Creditors of NWS Anlagenbau GmbH & Co.KG have until Nov. 29 to register their claims with court-appointed provisional administrator Michael Wilkens. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 8, 2007, 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 Schwerin Hall 3 Demmlerplatz 14 Schwerin, 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 Schwerin opened bankruptcy proceedings against NWS Anlagenbau GmbH & Co.KG on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: NWS Anlagenbau GmbH & Co.KG Nikolaus-Otto-Str. 20 19061 Schwerin, Germany The administrator can be contacted at: Michael Wilkens Elbchaussee 140 22763 Hamburg, Germany PR INDUSTRIEMONTAGE: Claims Registration Ends December 1 -------------------------------------------------------- Creditors of PR Industriemontage und Handels GmbH have until Dec. 1 to register their claims with court-appointed provisional administrator Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 8:40 a.m. on Dec. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund, 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 Dortmund opened bankruptcy proceedings against PR Industriemontage und Handels GmbH on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: PR Industriemontage und Handels GmbH Karl-Marx-Str. 59 44141 Dortmund, Germany Attn: Pavao Prpic, Manager Flachsteich 20 44229 Dortmund, Germany The administrator can be contacted at: Dr. Sebastian Henneke Hansastrasse 61 44137 Dortmund, Germany STEIERL FLEISCHWAREN: Claims Registration Ends December 1 --------------------------------------------------------- Creditors of Steierl Fleischwaren GmbH have until Dec. 1 to register their claims with court-appointed provisional administrator Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Dec. 22 at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 2nd Floor Court Place 1 44135 Dortmund, 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 Dortmund opened bankruptcy proceedings against Steierl Fleischwaren GmbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Steierl Fleischwaren GmbH Attn: Detlef Steierl, Manager Dollersweg 43 44319 Dortmund, Germany The administrator can be contacted at: Dr. Sebastian Henneke Hansastrasse 61 44137 Dortmund, Germany USG CORP: Prices US$500 Mln 6.30% Notes at 99.927% of Principal --------------------------------------------------------------- USG Corp. disclosed the pricing of a private offering of US$500 million aggregate principal amount of its 6.30% Senior Notes due Nov. 15, 2016. The notes will be the unsecured obligations of USG and will be sold to investors at a price of 99.927% of the principal amount, plus any accrued interest from Nov. 17, 2006. The offering of the notes was expected to close on or about Nov. 17, 2006. The Company intends to use the net proceeds of the private offering for any or a combination of the following: to pay a portion of its US$3.05 billion contingent payment note that was issued to the Section 524(g) asbestos trust created under its plan of reorganization, to replace a portion of the commitments or repay a portion of amounts outstanding under the term loan facility under its credit agreement entered into in August 2006, for working capital purposes and/or for general corporate purposes. The Company disclosed that the notes will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. Headquartered in Chicago, Illinois, USG Corporation -- http://www.usg.com/-- through its subsidiaries, is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The Company filed for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). David G. Heiman, Esq., Gus Kallergis, Esq., Brad B. Erens, Esq., Michelle M. Harner, Esq., Mark A. Cody, Esq., and Daniel B. Prieto, Esq., at Jones Day represent the Debtors in their restructuring efforts. Lewis Kruger, Esq., Kenneth Pasquale, Esq., and Denise Wildes, Esq., represent the Official Committee of Unsecured Creditors. Elihu Inselbuch, Esq., and peter Van N. Lockwood, Esq., at Caplin & Drysdale, Chartered, represent the Official Committee of Asbestos Personal Injury Claimants. Martin J. Bienenstock, Esq., Judy G. Z. Liu, Esq., Ralph I. Miller, Esq., and David A. Hickerson, Esq., at Weil Gotshal & Manges LLP represent the Statutory Committee of Equity Security Holders. Dean M. Trafelet is the Future Claimants Representative. Michael J. Crames, Esq., and Andrew A. Kress, Esq., at Kaye Scholer, LLP, represent the Future Claimants Representative. Scott Baena, Esq., and Jay Sakalo, Esq., at Bilzen Sumberg Baena Price & Axelrod LLP, represent the Asbestos Property Damage Claimants Committee. When the Debtors filed for protection from their creditors, they listed US$3,252,000,000 in assets and US$2,739,000,000 in debts. The Debtors emerged from bankruptcy protection on June 20, 2006. * * * As reported in the Troubled Company Reporter on Nov. 15, 2006 Standard & Poor's Ratings Services assigned its 'BB+' debt rating to the proposed US$500 million senior unsecured notes of USG Corp., due 2016. S&P said the rating outlook is stable. VISTEON CORP: Seeks Lenders' Okay for US$100MM Additional Loan -------------------------------------------------------------- Visteon Corp. is seeking lender approval for an additional US$100 million to US$200 million in secured term loans under its existing US$800 million seven-year secured term loan that expires in June 2013. The Company says the action will further enhance its liquidity as it executes its three-year plan, and allows the company to take advantage of strong financial market conditions. Under provisions of the seven-year secured term loan, Visteon can increase the term loan by as much as US$100 million and to raise an amount greater than US$100 million, it will require lenders approval under the term loan and the US$350 million U.S. asset-based revolving credit facility. "Given the current strength of market conditions, we believe it is a prudent time to further enhance the liquidity of Visteon as we implement our three-year plan," James F. Palmer, executive vice president and chief financial officer, said. J.P. Morgan Securities Inc. and Citigroup Global Markets, Inc. will act as lead arrangers for the transaction; JPMorgan Chase Bank, N.A. is the administrative agent. The Company expects to complete the transaction in 2006, which is subject to final documentation and other conditions. Headquartered in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 50,000 people. At Sept. 30, 2006 the Company's balance sheet showed total assets of US$6.721 billion and total liabilities of US$6.823 billionresulting in a total shareholders' deficit of US$102 miilion. Total shareholders' deficit at Dec. 31, 2005 stood at US$48 million. * * * Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Visteon Corp. to 'B' from 'B+' and its short-term rating to 'B-3' from 'B-2'. These actions stem from the company's weaker-than-expected earnings and cash flow generation, caused by vehicle production cuts, inefficiencies at several plant locations, sharply lower aftermarket product sales, continued pressure from high raw material costs, and several unusual items that will impact 2006 results. VOLKSWAGEN AG: Porsche Hikes VW Stake to 27.4%; Eyes More Equity ---------------------------------------------------------------- Porsche AG raised its stake in Volkswagen AG to 27.4% and hinted a further increase to as much as 29.9%, just below the threshold where it must make a formal takeover bid, BBC News reports. BBC says Porsche's board has given its management the authority to increase its VW holding below the takeover threshold, although when this will happen remains unclear. Porsche is Volkswagen's biggest single shareholder after it bought a 21.2% stake in VW last year. As reported in the TCR-Europe on Nov. 16, Porsche CEO Wendelin Wiedeking expects a five percent pretax profit margin for Volkswagen once incoming Martin Winterkorn takes over as VW's chief executive. Mr. Winterkorn, who is currently serving as Audi AG's CEO, will replace Bernd Pischetsrieder on Jan. 1, 2007. The board approved Mr. Winterkorn's appointment on Nov. 17. As previously reported by Bloomberg News, a share hike would allow Mr. Wiedeking to prepare for the possible repeal of Germany's so-called "Volkswagen Law", which restricts voting rights to 20 percent of the stock regardless of the stake's size. The law, Bloomberg relates, also gives an investor with 20 percent veto power over major decisions such as factory closings and capital increases. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. WALLER WOHNUNGSBAU: Creditors' Meeting Slated for December 1 ------------------------------------------------------------ The court-appointed provisional administrator Waller Wohnungsbau GmbH & Co. Baubetreuungs KG, Christian Willmer, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:15 a.m. on Dec. 1. The meeting of creditors and other interested parties will be held at: The District Court of Verden (Aller) Hall 214 Main Building Johanniswall 8 27283 Verden (Aller), Germany The Court will also verify the claims set out in the administrator's report at 9:05 a.m. on Jan. 12, 2007, at the same venue. Creditors have until Dec. 1 to register their claims with the court-appointed provisional administrator. The District Court of Verden (Aller) opened bankruptcy proceedings against Waller Wohnungsbau GmbH & Co. Baubetreuungs KG on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Waller Wohnungsbau GmbH & Co. Baubetreuungs KG Attn: Guenter Hanke, Manager Katzenberg 22 27283 Verden, Germany The administrator can be reached at: Dr. Christian Willmer Georgstr. 5 27283 Verden (Aller), Germany Tel: 04231/884-45 Fax: 04231/884-55 =========== G R E E C E =========== ANTENNA TV: S&P Cuts Rating to B+ on Weak Performance ----------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Greek broadcaster Antenna TV S.A. to 'B' from 'B+', due to the company's ongoing weak operating performance and very aggressive financial profile. The outlook is stable. "The rating action follows Antenna's weaker-than-expected performance in the third quarter of 2006, compounding the company's already poor performance since the fourth quarter of 2005," said Standard & Poor's credit analyst Olli Rouhiainen. Antenna will find it difficult to recover its share of peak time viewing in the upcoming important fourth quarter following deterioration to a historical low of 15.9%. This compares with 19.0% in the fourth quarter in 2005. "The company needs to improve its viewing figures in the fourth quarter to improve its negotiation position with advertisers for financial 2007 to have any chance of financial recovery in the near term," added Mr. Rouhiainen. The ratings or outlook could be revised downward if the company is unable to stabilize its viewing share and operating performance. This could cause a downward spiral because Antenna would have to then adjust program costs, which in turn could have a further negative impact on viewing share. The ratings could be positively affected if Antenna can demonstrate a better-than-expected improvement in profitability and if the company's financial ratios improve well ahead of the targets for the ratings. ============= H U N G A R Y ============= FLEXTRONICS INT'L: Eyes 30% Job Cuts in Nyiregyhaza Plant --------------------------------------------------------- Flextronics International Ltd. is planning to cut about 30% of its workforce at its Nyiregyhaza plant in northeast Hungary after losing a major client, Bloomberg News reports. The Nyiregyhaza plant currently employs approximately 2,000 permanent and temporary workers, where more than 1,000 were hired for the past six months. Peter Papp, a Flextronics director of human resources for eastern Europe, told Bloomberg that the job cuts are necessary after the unnamed client took away the company's major production. He added that the laying off of 590 employees by early February is "the worst-case scenario because we'll try to help them find jobs within the company." Mr. Papp emphasized that Flextronics will remain one of Hungary's 10 largest employers. After the job cuts, the company will employ just under 10,000. Mr. Papp refused to provide details pertaining to the identity of the client but said its product was sold in large volumes around Christmas. Flextronics also has plants in Tab, southwest Hungary, Zalaegerszeg in the west and Sarvar in the northwest. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- provides electronics manufacturing services through a network of facilities in over 30 countries worldwide including Finland, Hungary, Sweden and the United Kingdom. The company delivers complete design, engineering, and manufacturing services to aerospace, automotive, computing, consumer digital, industrial, infrastructure, medical and mobile original equipment manufacturers. * * * As reported in the TCR-Europe on Nov. 9, Fitch Ratings downgraded the ratings for Flextronics International Ltd.: -- Issuer Default Rating to BB+ from BBB-; -- Senior Unsecured credit facility to BB+ from BBB-; and -- Senior subordinated notes to BB from BB+; Fitch said the Rating Outlook is Stable. Fitch's action affects around US$1.7 billion of total debt. Moody's Investors Service confirmed Flextronics International Ltd.'s Ba1 Corporate Family Rating in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. ============= I R E L A N D ============= BIOVAIL CORP: Moody's Revises Rating Outlook to Stable ------------------------------------------------------ Moody's Investors Service revised Biovail Corp.'s rating outlook to stable from negative and affirmed all existing ratings, including the Ba3 Corporate Family Rating. Moody's acknowledges significant event risk associated with the potential near-term launch of a generic version of Wellbutrin XL into the U.S. market. This event would result in a significant decline in Biovail's cash flow. Even under this scenario, however, Moody's believes that a stable outlook is supported by: (1) significant progress on the risk factors outlined in June 2004 when Moody's first assigned the negative rating outlook; (2) the recent decision to keep rather than spin-off the legacy products business, which generates good cash flow; (3) the recent launch of Johnson & Johnson's Ultram ER, using Biovail's drug delivery technology; (4) significant balance sheet flexibility based on low debt levels and over US$600 million of unrestricted cash; and (5) Moody's anticipation that if the company increases leverage in order to make acquisitions, Debt/EBITDA is unlikely to exceed 2 times over a prolonged period of time. As of Sept. 30, 2006, Biovail's Debt/EBITDA was approximately 0.7 times. Overall, Moody's believes that the combination of these factors: -- even considering a potential near-term loss of Wellbutrin XL -- makes it less likely that Biovail's Corporate Family Rating may move into the single-B category in the near term. To consider positive rating pressure, Moody's would prefer to see greater resolution of the Wellbutrin XL patent situation. If a generic is launched, Moody's could still consider positive rating action in the future under these circumstances: (1) success in the Ultram ER launch; (2) a launch of bupropion salt in 2007; and (3) evidence that Biovail can achieve its growth strategy within the leverage parameters outlined above. Conversely, downward rating pressure could result under the these scenarios: (1) very large cash-financed acquisitions such that Debt/EBITDA materially exceeds 2 times; (2) large litigation payments significantly in excess of Moody's US$300 million estimate; or (3) a much more pronounced decline in cash flow from a launch of generic Wellbutrin XL than Moody's current estimate. Biovail Corp. Ratings affirmed: * Corporate Family Rating at Ba3 * Senior Subordinated Notes at B1 (LGD4, 67%) * Outlook revised to stable from negative Biovail Corp. is a specialty pharmaceutical and drug delivery company involved in the development, manufacturing and commercialization of pharmaceutical products. The company reported approximately US$763 million in net revenue for the first nine months of 2006. DELL INC: Looks to Release Third Quarter Results by Month's End --------------------------------------------------------------- Dell Inc. intends to report its preliminary results for the fiscal third quarter by the end of this month. The move from the originally scheduled date of November 16 reflects the level of complexity the company is facing in the preparation of its preliminary results. The complexity arises out of the ongoing investigations by the U.S. Securities and Exchange Commission and the company's Audit Committee into certain accounting and financial reporting matters, and the fact the company has not filed its Form 10-Q for the second fiscal quarter. When the company does announce earnings it will be in the form of a press release only. In addition, the company said that future earnings announcements will be moved back by approximately one week versus Dell's prior schedule. The company also announced it has been informed that the SEC has entered a formal order of investigation. The delay in announcing earnings is not related to that development. Dell continues to cooperate with the SEC, and is committed to resolving all issues in connection with the investigation and regaining compliance with all SEC filing requirements as soon as possible. Headquartered in Round Rock, Texas, Dell Inc. (NASDAQ: DELL) -- http://www.dell.com/-- designs, develops, manufactures, markets, sells, and provides support for various computer systems and services to customers worldwide. Dell has regional headquarters in Bracknell, England, for Europe, Middle East and Africa and in Singapore to serve the Pacific Rim, including Japan, India, China, Australia and New Zealand. The company manufactures its computer systems in seven locations: Austin, Texas; Nashville, Tenn.; Winston-Salem, North Carolina; Eldorado do Sul, Brazil (Americas); Limerick, Ireland (Europe, Middle East and Africa); Penang, Malaysia (Asia Pacific and Japan) and Xiamen, China (China). Dell sells its products and services worldwide. ========= I T A L Y ========= M. FABRIKANT & SONS: Files Chapter 11 Petition in New York ---------------------------------------------------------- M. Fabrikant & Sons, Inc., together with its domestic subsidiary, Fabrikant-Leer International, Ltd., filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The Company's foreign and domestic affiliates were not included in the Chapter 11 filing. The Company is expected to continue to operate its business during the pendency of this Chapter 11 case as a debtor in possession under the Bankruptcy Code. The Company expects a smooth transition into Chapter 11, with all of its facilities expected to remain open on normal schedules. Fabrikant has negotiated financing arrangements with its senior secured lenders that remain subject to court approval. Using the Chapter 11 process, Fabrikant plans to continue to pay employee wages and benefits and to honor the customer fulfillment obligations and programs for which the Company has become so well known, and to make uninterrupted payments to suppliers for goods and services. In addition, the Company continues to actively pursue a full range of strategic alternatives, including the sale or refinancing of the firm. Fabrikant believes that its Chapter 11 proceedings currently provide the best opportunity to maximize the value of its assets and its business for all stakeholders. Headquartered in New York City, M. Fabrikant & Sons, Inc. -- http://www.fabrikant.com/-- sells & distributes diamonds and jewelries. Established in 1895, the Company is one of the oldest diamond and jewelry wholesaler in the world including Canada, China, Japan, Thailand, Israel, Belgium and Italy. M. FABRIKANT & SONS: Case Summary & 45 Largest Unsec. Creditors --------------------------------------------------------------- Lead Debtor: M. Fabrikant & Sons, Inc. One Rockefeller Plaza New York, NY 10020 Bankruptcy Case No.: 06-12737 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Fabrikant-Leer International, Ltd. 06-12739 Type of Business: The Debtors sell diamonds and jewelry. Established in 1895, the Company is one of the oldest diamond and jewelry wholesaler in the world, including Canada, China, Japan, Thailand, Israel, Belgium and Italy. See http://www.fabrikant.com/ Chapter 11 Petition Date: November 17, 2006 Court: Southern District of New York (Manhattan) Debtors' Counsel: Mitchel H. Perkiel, Esq. Troutman Sanders LLP 405 Lexington Avenue New York, NY 10174 Tel: (212) 704-6016 Fax: (212) 704-6288 Estimated Assets: More than $100 Million Estimated Debts: More than $100 Million A. M. Fabrikant & Sons, Inc.'s 25 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ ABN AMRO Bank N.V. Bank Debt $13,854,000 Pelikannstraat Street 70-76 2018 Antwerpen, Belgium Antwerpse Diamanbank NV Bank Debt $8,804,000 Pelikannstraat 54 B-2018 Antwerpen 1 Union Bank of Israel Bank Debt $7,870,000 Diamond Exchange Branch 3 Jabotinski Street P.O. Box 3006 Ramat Gan 52310 Israel H. Dipak & Co. Trade Debt $5,671,876 D-10, Road No-21, MIDC Andheri (E) Mumbai, 400 063 India Blue Star Trade Debt $5,554,113 312A Prasad Chambers, Opera House Mumbai, 400 004 India Hong Kong & Shanghai Bank Debt $4,509,000 Banking Corporation Limited HSBS Main Building 1 Queen Road Central Hong Kong Israel Discount Bank Bank Debt $3,396,000 Diamond Exchange Branch 3 Jabotinski Street Ramat Gan 52310 Israel K. Girdharlal International Trade Debt $2,288,357 Pvt Ltd 1003 Panchratna, Opera House Mumbai, 400 004 India K P Sanghvi & Sons Trade Debt $1,807,075 1301 Prasad Chambers Opera House Mumbai 400 004 India Bhavani Gems Trade Debt $1,479,016 101 Prasad Chambers M.P. Marg, Opera House, Bombay, 400 004 India Disons Gems, Inc. Trade Debt $1,341,372 22 West 48th Street Suite #300 New York, NY 10036 Chaim Ausch Diamonds Trade Debt $1,165,743 18 East 48th Street 4th Floor New York, NY 10017 Laxmi Diamond Trade Debt $1,052,886 416 Prasad Chamber, Opera House Mumbai, 400 004 India K.G.K. Enterprises Trade Debt $499,173 647 - A Panchratna Opera House Mumbai, 400 004 India M. Suresh & Co. Pvt. Ltd. Trade Debt $470,593 419 Parekh Market, Opera House Mumbai, 400 004 India Kiran Exports Trade Debt $439,266 109 Prasad Chambers Opera House Mumbai, 400 004 India Dhanraj Dhadda Exports Trade Debt $400,147 1208 Panchratna Opera house Mumbai, 400 004 India Shree Ramkrishna Export Trade Debt $392,461 214 Prasad Chambers Opera House Mumbai, 400 004 India Bluerays, Inc. Trade Debt $377,325 22 West 48th Street Suite #1006 New York, NY 10036 Impex Diamonds Trade Debt $317,658 302 Dharam Place 100/103 Hughes Road Mumbai, 400 007 India Asian Star Company Ltd. Trade Debt $308,295 114 Mittal Court-C Nariman Point Mumbai, 400 021 India Schain Leifer Guralnick Trade Debt $281,031 10 East 40th Street Suite 2710 New York, NY 10016-0348 Enlink Inc. Trade Debt $250,078 10 Parsonage Road Suite 312 Edison, NJ 08837 Diashine Exports Trade Debt $232,639 2504 Panchratna Opera house Mumbai, 400 004 India EMA Trade Debt $203,476 Molla Fenari MH. Vezirhan CD. #42/47 Cerberlitas 34120 Istanbul, Turkey B. Fabrikant-Leer International, Ltd.'s 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Vaishali Diamond Corp. Trade Debt $2,043,674 579 Fifth Avenue Suite 1475 New York, NY 10017 Providence Chain Co. Trade Debt $362,617 225 Carolina Avenue Providence, RI 02905-4538 Gramercy Jewelry Mfg. Corp. Trade Debt $214,755 115 West 30th Street 10th Floor new York, NY 10001 National Stampcast, Inc. Trade Debt $208,424 15 West 37th Street New York, NY 10018 Findings, Incorporated Trade Debt $200,700 P.O. Box 847440 Boston, MA 02284-7440 M&Z Creations, Ltd. Trade Debt $155,895 dba Ordan Corp. Suite 201 New York, NY 10036 JAH Advisors Inc. Services $109,600 1350 South Grandstaff Auburn, IN 46706 International Gemmological Trade Debt $85,957 Institute 589 Fifth Avenue 4th Floor New York, NY 10017 J.S.A. Jewelry, Inc. Trade Debt $81,510 10 West 47th Street, #1307 New York, NY 10036 C.D. Jewels Trade Debt $80,450 576 Fifth Avenue Suite 200-B New York, NY 10036 Leo Wolleman, Inc. Trade Debt $75,180 45 West 45th Street 10th Floor New York, NY 10036 Manufacturing USA Ent., Inc. Trade Debt $73,778 632 Irving Avenue Glendale, CA 91201 BK Jewelry Contractors, Inc. Trade Debt $63,411 64 West 48th Street Suite #600 New York, NY 10036 Companion Trading Co., Inc. Trade Debt $60,313 P.O. Box 580002 Flushing, NY 11358 R.S. Importing Ltd. Trade Debt $59,804 2 West 46th Street Suite 407 New York, NY 10036 Keystone Findings, Inc. Trade Debt $46,561 600 Emlen Way Telford, PA 18969 Fremada Gold Inc. '04 Trade Debt $40,505 2 West 45th Street Suite 1605 New York, NY 10036 Limited Parcel Service Services $35,255 P.O. Box 7247-0244 Philadelphia, PA 19170-0001 Pacific Northern, Inc. Trade Debt $30,707 3116 Belmeade Drive Carrollton, TX 75006 Real Gems, Inc. Trade Debt $29,245 18 East 48th Street Room 801 New York, NY 10017 NEWPARK RESOURCES: S&P Affirms B+ Rating on Weak Profitability -------------------------------------------------------------- Standard & Poor's Rating Services affirmed its 'B+' corporate credit rating on oilfield services company Newpark Resources Inc. and removed the rating from CreditWatch with negative implications, where it had been placed on July 26. The outlook is stable. Metarie, La.-based Newpark had about US$220 million of debt as of Sept. 30, 2006. The rating action follows the company's filing of financial statements for the first three quarters of 2006 and restatement of results for the previous five years. Newpark announced in April that it was launching an internal investigation after uncovering accounting irregularities. The inquiry resulted in the restatements, delays in filing quarterly statements, and the removal of the CFO and former CEO. "The company faces several remaining challenges, including shareholder lawsuits and material weaknesses in internal controls," said Standard & Poor's credit analyst Ben Tsocanos. "We view the likelihood that Newpark will manage these issues successfully as sufficient to warrant the stabilization of the ratings on the company." The ratings on Newpark reflect a weak business risk profile incorporating participation in the highly cyclical oilfield services industry and geographic concentration, as well as an aggressive financial risk profile constrained by accounting and governance problems, low margins, and limited liquidity. The company's profitability has remained weak during the current industry upturn, lagging the recovery of drilling activity in the Gulf of Mexico. The stable outlook reflects Standard & Poor's expectation that Newpark will resolve its remaining accounting and legal issues, and expand its liquidity. Failure to improve the company's financial position during the current period of favorable industry conditions would likely result in a negative outlook or downgrade. Upward ratings movement is limited by weak profitability and cash flow during a favorable period of oilfield services market conditions. * Italy Gas Supply Deals Pose Challenges, Fitch Says ---------------------------------------------------- Fitch Ratings disclosed that while Italy's recent two deals to secure gas supply may help avert another domestic gas crisis, they raise questions about their impact on market competition and supply dependency. The first deal is a gas supply contract between Italy's ENI Spa and Russia's Gazprom OAO and the second is a gas pipeline development project between the Italian and Algerian governments. With these two deals, Italy has extended gas supply contracts from Russia by up to 25 years and has secured an additional 10 billion cubic meter per year of gas supply from Algeria. "The strengthening of commercial relationships with Russia and Algeria, already major exporting countries to the Italian market, will contribute to further concentration in the existing gas supplier base," stated Francesca Fraulo, Director in Fitch's Energy & Utility team. "Although the deals considerably improve gas volumes and tenor conditions, they do not address supply security issues, as they increase the exposure of the Italian market to political risk from Russia and Algeria as well as transit countries such as Ukraine." The agreement between Italy and Algeria to develop the Galsi pipeline project does not remove concerns about Italy's increasing strategic dependence on gas in the short to medium term, since the pipeline is not scheduled to operate before 2011. Furthermore, the growing domestic gas demand, driven by increasing gas-fired electricity generation, is likely to escalate over the next three years should the combined cycle gas turbine generation capacity under construction come on stream as planned. Whether the additional gas volume from Algeria will contribute to lower gas-fired generation costs and influence the electricity generators' relative competitive position is difficult to gauge at this stage. Fitch notes that while the extension of the existing supply contract between ENI and Gazprom reinforces a long-standing strategic commercial relationship, it will only strengthen the incumbent operator's position rather than foster a further opening of the import market. ENI already imports around 70% of its gas into Italy. Furthermore, as part of the agreement, Gazprom is entitled to sell up to 3 bcm of gas, which are part of the volumes currently sold to ENI, directly into the Italian market. Fitch views that the entry of a new operator in the retail market segment, with access to its own supply, will not necessarily promote competition. Instead, it is likely to curb competition, given the unfair advantages that Gazprom stands to gain from swapping gas volumes in return for access to end customers. "This also raises doubts on the actual 'reciprocity of conditions' given the likelihood of Italian gas operators gaining access to Gazprom's upstream gas market," disclosed Ms. Fraulo. In exchange for direct customer access, Gazprom has committed to cooperate in transmission and LNG projects development. Nevertheless, Fitch notes that Italian policymakers' enthusiasm for the latest two deals should not cause a loss of momentum for developing an alternative strategy to secure national gas supply, such as through LNG infrastructures. The latter represents an unique opportunity to enlarge the domestic gas supplier base and to establish a strong foothold in the European gas market. In the context of EU moves to try and refine a regional energy policy, and discussions regarding the potential formation of a 'gas bank', any extension/expansion of bi-lateral contracts by Gazprom could be viewed as a defensive move. =================== K A Z A K H S T A N =================== AK OTAU: Almaty Court Opens Bankruptcy Proceedings -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Ak Otau Kurylys (RNN 600800051285) on Oct. 6. ALMATINSKAYA GORODSKAYA: Claims Registration Ends Dec. 22 --------------------------------------------------------- OJSC Almaty City Cliring Chamber Almatinskaya Gorodskaya Kliringovaya Palata has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: OJSC Almatinskaya Gorodskaya Kliringovaya Palata Aiteke bi Str. 55 Almaty, Kazakhstan Tel: 8 (3272) 58-37-58 BASIS LLP: Karaganda Court Begins Bankruptcy Proceedings -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Basis (RNN 301200212362). LLP Basis is located at: Dimitrov Str. 74/1 Temirtau Karaganda Region Kazakhstan EXTRA DEALER: Creditors Must File Claims by Dec. 20 --------------------------------------------------- LLP Extra Dealer has declared insolvency. Creditors have until Dec. 20 to submit written proofs of claim to: LLP Extra Dealer Novoselov Str. 18-6 Ekibastuz 141200 Pavlodar Region Kazakhstan EURO GOLD: Proof of Claim Deadline Slated for Dec. 27 ----------------------------------------------------- LLP Euro Gold has declared insolvency. Creditors have until Dec. 27 to submit written proofs of claim to: LLP Euro Gold Chaikovsky Str. 144a 050000 Almaty, Kazakhstan Tel: 8 (3272) 71-67-87 INTRACOM LLP: Claims Filing Period Ends Dec. 20 ----------------------------------------------- LLP Intracom has declared insolvency. Creditors have until Dec. 20 to submit written proofs of claim to: LLP Intracom Baiseitova Str. 40 Bostandyksky District Almaty, Kazakhstan Tel: 8 (3272) 72-25-51 KANDYAGASH JYLU: Aktube Court Starts Bankruptcy Procedure --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube Region commenced bankruptcy proceedings against LLP Kandyagash Jylu Energya. KAZAKH OIL: Creditors' Claims Due Dec. 27 ----------------------------------------- LLP Kazneftegasstroy Kazakh Oil Gas Build has declared insolvency. Creditors have until Dec. 27 to submit written proofs of claim to: LLP Kazneftegasstroy Kazakh Oil Gas Build Dzerjynsky Str. 60 Kokshetau Akmola Region Kazakhstan Tel: 8 (31622) 25-06-22 KUAT JETYSAI: Creditors Must File Claims by Dec. 27 --------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared OJSC Kuat Jetysai Kurylys insolvent. Creditors have until Dec. 27 to submit written proofs of claim to: OJSC Kuat Jetysai Kurylys Ahmet-Yassaui Str. 3 Jetysai South Kazakhstan Region Kazakhstan Tel: 8 (7017) 50-19-10 MANGISTAU PROD: Proof of Claim Deadline Slated for Dec. 27 ---------------------------------------------------------- LLP Mangistau Prod Product has declared insolvency. Creditors have until Dec. 27 to submit written proofs of claim to: LLP Mangistau Prod Product Micro District 14, 59a-40 Akatu Mangistau Region Kazakhstan Tel: 8 (3292) 42-93-42 MASTER LLP: South Kazakhstan Court Starts Bankruptcy Procedure -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Master. LLP Master can be reached at: Mangeldin Str. 44-37 Shymkent South Kazakhstan Region Kazakhstan Tel: 8 (3252) 32-23-42 NURKAZGAN-SERVICE: Karaganda Court Opens Bankruptcy Proceedings --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Nurkazgan- Service (RNN 302600215320). LLP Nurkazgan-Service is located at: K. Marks Str. 6 Jezkazgan Karaganda Region Kazakhstan PETROLEUM LLP: Claims Registration Ends Dec. 22 ----------------------------------------------- LLP Publishing House Petroleum has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Petroleum Furmanov Str. 174b Almaty, Kazakhstan SHIPA SERVICE: Proof of Claim Deadline Slated for Dec. 20 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Shipa Service insolvent on Sept. 27. Creditors have until Dec. 20 to submit written proofs of claim to: LLP Shipa Service Aktau, 12-71-52 Mangistau Region Tel: 8 (3292) 43-70-36 TEMIR-SATU LLP: Karaganda Court Begins Bankruptcy Proceedings ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Temir-Satu (RNN 302600212205). LLP Temir-Satu is located at: Shevchenko Str. 25-8 Jezkazgan Karaganda Region Kazakhstan TRANSIT TRANS: Claims Filing Period Ends Dec. 27 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Company Transit Trans insolvent on Oct. 3. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Dec. 27 to submit written proofs of claim to: LLP Transit Trans Sain Str. 8-94 Almaty, Kazakhstan Tel: 8 (3272) 56-75-46 8 (3332) 93-23-15 VARTY PACIFIC: Creditors' Claims Due Dec. 22 -------------------------------------------- LLP Varty Pacific Airlines has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Varty Pacific Airlines Gagarin Str. 32 Boroldai Ilyi District Almaty Region Kazakhstan Tel: 8 (32752) 76-75-41 =================== K Y R G Y Z S T A N =================== ROSSIYSKO-AZIATSKY DIESEL: Creditors' Claims Due Jan. 3, 2007 ------------------------------------------------------------- Joint Kyrgyz-Russian-Kazakh CJSC Rossiysko-Aziatsky Diesel Snub has declared insolvency. Creditors have until Jan. 3. 2007, to submit written proofs of claim. Inquiries can be addressed to (0-502) 32-50-70. SUN LIGHT: Claims Registration Ends Dec. 29 ------------------------------------------- LLC Air Company Sun Light has declared insolvency. Creditors have until Dec. 29 to submit written proofs of claim to: LLC Sun Light Free Economic Zone Bishkek Mir Ave. 303 Bishkek, Kyrgyzstan Tel: (+996 312) 54-08-08 URAL: Claims Filing Period Ends Dec. 29 --------------------------------------- Joint Kyrgyz-Russian Enterprise Ural has declared insolvency. Creditors have until Dec. 29 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 62-39-56. =================== L U X E M B O U R G =================== DOV PHARMACEUTICAL: Sept. 30 Equity Deficit Widens to US$51 Mln --------------------------------------------------------------- DOV Pharmaceutical Inc. filed its financial statements for the third quarter ending Sept. 30, 2006, with the U.S. Securities and Exchange Commission on Nov. 9, 2006. At Sept. 30, 2006, the Company's balance sheet showed US$54.528 million in total assets and US$105.504 million in total liabilities, resulting in a US$50.975 million stockholders' deficit. The Company had a US$19.301 million deficit at Dec. 31, 2005. The Company's September 30 balance sheet also showed strained liquidity with US$48.794 million in total current assets available to pay US$86.580 million in total current liabilities. Third Quarter 2006 Performance For the third quarter of 2006, the Company reported a net loss attributable to common stockholders of US$17.5 million as compared with US$15.7 million for the comparable period in 2005. For the nine months ended Sept. 30, 2006, the Company reported a net loss attributable to common stockholders of US$58.4 million compared with US$36.0 million for the comparable period in 2005. At Sept. 30, 2006, cash and cash equivalents and marketable securities totaled US$47.3 million as compared with US$97.6 million at Dec. 31, 2005. Revenue for the third quarter of 2006 was US$1.1 million compared with US$1.4 million for the comparable period last year. Revenue for the nine months ended Sept. 30, 2006, was US$3.7 million compared with US$7.3 million for the comparable period in 2005. Revenue for the three and nine months ended Sept. 30, 2006, consisted of US$1.1 million and US$3.7 million, respectively, of amortization of the US$35.0 million fee the Company received on the signing of the license, research and development agreement for its collaboration with Merck over the estimated research and development period, compared with US$1.4 million and US$5.3 million, respectively, in the comparable period in 2005. In the nine months ended Sept. 30, 2005, the Company also realized a US$2.0 million milestone payment under DOV's partnership agreement with Neurocrine Biosciences Inc. upon the acceptance of the New Drug Application by the U.S. Food and Drug Administration for indiplon tablets for the treatment of insomnia. The increase in payroll and payroll-related expenses is primarily the result of an increase in non-cash stock compensation of US$801,000 related to the adoption of SFAS 123(R) offset by an overall decrease in headcount. Interest expense for the three and nine months ended Sept. 30, 2006, includes non-cash amortization of US$2.1 million of deferred issuance costs on the Company's convertible subordinated debt as well as contractual interest expense of 2.5% on the outstanding balance. Debt conversion and other expense for the three and nine months ended Sept. 30, 2006, includes a US$5.6 million non-cash charge related to the additional shares issued to induce the exchange of an aggregate of US$10 million in original principal amount of the Company's outstanding convertible debentures for 3,445,000 shares of its common stock. NASDAQ Delisting DOV shares were no longer listed for trading on a national securities exchange as of Oct. 27, 2006. The delisting of the Company's common stock represents a "fundamental change" under the indenture governing its 2.50% Convertible Subordinated Debentures due 2025. As a result, DOV is obligated to offer to repurchase the debentures. The Company offered to repurchase the debentures on Nov. 9, 2006. There are currently US$70 million in aggregate principal amount of debentures outstanding. Holders of the debentures will have the option, but not the obligation, to require the Company to repurchase their debentures at 100% of the principal amount of the debentures, plus any accrued and unpaid interest. The Company has retained Houlihan Lokey Howard & Zukin Capital, Inc. to serve as its financial advisor to assist with its evaluation of strategic alternatives and restructuring efforts with respect to the debentures. New Strategic Direction DOV announced in October 2006 a new strategic direction in which the Company will focus its internal efforts on its Phase I and II clinical and pre-clinical research programs for the development and discovery of drugs to treat neuropsychiatric disorders, advance the Company's later-stage drug development programs through external partnerships and collaborations, and optimize the Company's financial position. As a result of this new strategic direction, DOV announced that it would further reduce its in-house late stage clinical development expenditures such as those associated with bicifadine, its novel analgesic in Phase III for pain. Currently, DOV has drug development programs that are at the pre-clinical, Phase I and Phase II clinical stages. These include DOV 21,947 (entering Phase II for depression), DOV 102,677 (Phase I for alcohol abuse) and an active preclinical discovery program in reuptake inhibitors and GABA modulators. The Company also has retained an investment-banking firm, HSBC Securities (USA) Inc., to identify and evaluate its strategic options. Full-text copies of the Company's third quarter financials are available for free at http://ResearchArchives.com/t/s?154d Going Concern Doubt & Bankruptcy Warning Management raised substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to raise sufficient funds to repurchase the requisite amount of debentures or restructure its obligations under its 2.50% Convertible Subordinated Debentures due 2025, it may be forced to seek protection under the United States bankruptcy laws. About DOV Pharmaceutical Somerset, New Jersey-based DOV Pharmaceutical Inc. (PS: DOVP.PK) -- http://www.dovpharm.com/-- is a biopharmaceutical company focused on the discovery, acquisition, and development of novel drug candidates for central nervous system disorders. The Company's product candidates address some of the largest pharmaceutical markets in the world including depression, pain and insomnia. The company also operates a subsidiary in Luxembourg. ===================== N E T H E R L A N D S ===================== CANDIDE FINANCING: Moody's Rates EUR5-Mln Class E Notes at Ba3 -------------------------------------------------------------- Moody's Investors Service assigned definitive long-term ratings to seven Classes of Notes issued by Candide Financing 2006 B.V. Ratings assigned: -- EUR400,000,000 Senior Class A1 Notes due 2051: Aaa; -- EUR350,000,000 Senior Class A2 Notes due 2051: Aaa; -- EUR1,125,000,000 Senior Class A3 Notes due 2051: Aaa; -- EUR47,000,000 Mezzanine Class B Notes due 2051: Aa2; -- EUR40,000,000 Junior Class C Notes due 2051: A1; -- EUR38,000,000 Subordinated Class D Notes due 205: Baa2; and -- EUR5,000,000 Subordinated Class E Notes due 2051: Ba3 This transaction represents the second securitization of Dutch residential mortgage loans sold by Bank of Scotland Amsterdam Branch and follows last year's Candide Financing 2005 transaction. The Notes are secured by the assignment of Dutch Residential Mortgages to the Issuer and the security assignments closely follow the security structure observed in other Dutch Residential Mortgage-Backed transactions. Unlike Candide Financing 2005, the assignment of the mortgages is registered at closing so that the legal transfer is completed without notification of the borrowers. The collateral characteristics are illustrative of the Dutch mortgage market, containing first- lien mortgage loans with lower ranking loans only in combination with first lien, and a weighted average loan to foreclosure value of approximately 107% at closing. Proceeds from the issuance of Class A, B, C and D Notes are used to purchase a portfolio of mortgage loan receivables and will be repaid by collections from this portfolio over time. Class E Notes together with the unrated Class F Notes fund the initial Reserve Fund balance and will be repaid by the available balance of the Reserve Fund when all Class A, B, C and D Notes are redeemed. The transaction has a step-up date in November 2012. Until May 2007, principal collections from the pool willl be used to purchase further mortgage loan receivables. After the end of the revolving period, principal collections will be used to redeem the notes in sequential order starting with Class A1 Notes, followed by Class A2 Notes and then Class A3 Notes. The Class A Notes share the same PDL and interest will be paid pro rata. The transaction benefits from a swap with Bank of Scotland plc to hedge interest rate risk over the entire term of the transaction. Excess Spread is generated in the transaction through the operation of the interest rate swap and the minimum Threshold Margin mechanism, which ensures that interest rates will be reset to maintain a certain amount of Excess Spread in the transaction. The Liquidity Facility is provided by ABN AMRO Bank N.V. DUCHESS VII: S&P Assigns BB- Rating on EUR15-Mln Class E Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR447.5 million secured floating-rate notes to be issued by Duchess VII CLO B.V. At the same time, it will issue EUR52.5 million of unrated notes. Duchess VII is the seventh cash flow CLO managed by Babson Capital Europe Ltd. The collateral will comprise a portfolio of predominantly senior secured leveraged loans. The portfolio may also comprise, among other things: -- euro- and sterling-denominated senior secured loans, -- mezzanine secured loans, -- unsecured loans, -- high-yield bonds, -- participations, -- synthetic securities, and -- structured finance securities. The portfolio must comply with a set of portfolio profile tests. This transaction features a class E reinvestment test. When triggered during the reinvestment period, it will divert up to 50% of the interest proceeds that remain after paying the interest due on the rated notes, and certain uncapped fees and expenses, to purchase additional collateral. Ratings List Duchess VII CLO B.V. EUR500 Million Secured Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A-1 AAA 190 A-2 AAA 150 B AA 35 C A 25 D BBB- 32.5 E BB- 15 F NR 52.5 NR-Not rated. E-MAC PROGRAM: Fitch Gives BB Rating on EUR3.2-Mln Class E Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to E-MAC Program B.V.'s Compartment NL 2006-III EUR803.2 million floating-rate notes: -- EUR151.2 million Class A1 mortgage-backed notes due 2017: AAA; -- EUR604.8 million Class A2 mortgage-backed notes due 2039: AAA; -- EUR21.6 million Class B mortgage-backed notes due 2039: AA-; -- EUR12 million Class C mortgage-backed notes due 2039: A-; -- EUR10.4 million Class D mortgage-backed notes due 2039: BBB-; and -- EUR3.2 million Class E notes due 2039: BB. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a securitization of Dutch residential mortgages originated by GMAC RFC Nederland, Atlas Funding B.V. and Quion 20 B.V. The primary servicing will be carried out by Stater Nederland B.V. for mortgage loans originated by GMAC and Atlas and Quion Hypotheekbemiddeling B.V. for mortgage loans originated by Quion 20 B.V. Stater and Quion are both well known third-party servicers in the Netherlands. The portfolio consists of first-ranking or first- and sequentially lower-ranking fixed- and floating-rate mortgages secured over residential properties located in the Netherlands. The expected ratings are based on the quality of the collateral, available credit enhancement and excess spread, a sound legal structure and the underwriting and servicing of Stater and Quion. The ratings also take into account the liquidity facility and the guaranteed investment contract of Rabobank as well as the interest rate swap provided by Credit Suisse International. At closing, credit enhancement provided by subordination and the reserve fund will total 5.9% for the Class A notes, 3.2% for the Class B notes, 1.7% for the Class C notes and 0.4% for the Class D notes. At closing, the uncollateralized EUR3.2m Class E notes will fund the balance of the reserve account equating to 0.4% of the balance of the A, B, C and D notes. The swap rates agreed under the reset swap agreements will be such that, in respect of the loans the rate of which has been reset, an excess margin of 35bps before the first put date and 20bps thereafter will remain after payment of senior expenses and interest due under the notes. HARBOURMASTER CLO: Fitch Rates EUR11.8-Mln Class E Notes at BB -------------------------------------------------------------- Fitch Ratings assigned Harbourmaster CLO 8 B.V's upcoming issue of EUR512.6 million floating-rate notes due 2022 expected ratings. The transaction, a European arbitrage collateralized loan obligation, is a securitization of primarily senior secured loans. -- EUR317 million Class A1 floating-rate notes: AAA; -- EUR84 million Class A2 floating-rate notes: AAA; -- EUR20.5 million Class B floating-rate notes: AA; -- EUR23.2 million Class C floating-rate notes: A; -- EUR21.1 million Class D floating-rate notes: BBB; -- EUR11.8 million Class E floating-rate notes: BB; and -- EUR35 million Class N subordinated notes: not rated. The final ratings are contingent on a satisfactory review of final documentation. The expected ratings of the Class A1 and A2 notes address ultimate repayment of principal at maturity and timely payment of interest, according to the terms of the notes. For all other rated Classes of notes, the expected ratings address ultimate payment of principal and interest, including any deferred interest, at maturity, according to the terms of the notes. The expected ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager, Harbourmaster Capital Limited, subject to the guidelines outlined in the collateral management agreement. The said guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. Fitch assigned Harbourmaster Capital Limited a CDO Asset Manager Rating of CAM2 for leveraged loans in September 2004 that was affirmed in November 2005, based on the manager's strong credit underwriting and workout experience. Fitch has performed an on site review of Harbourmaster Capital Limited in November 2006 and will review its CAM rating and update the CAM report on that basis shortly. The expected ratings are also based on the credit enhancement provided to the various Classes of notes, which consists of the subordinated notes, structural protection covenants and excess spread. This transaction is the 10th European CLO to be managed by Harbourmaster Capital Limited. The issuer is a company with limited liability, incorporated under the laws of the Netherlands. The net proceeds from the note issuance will be used to purchase a portfolio of primarily European senior secured loans. HIGHLANDER EURO: Moody's Assigns (P)Ba3 Rating on Class E Notes --------------------------------------------------------------- Moody's Investors Service assigned these provisional long-term ratings to the notes to be issued by Highlander Euro CDO II B.V., a special purpose vehicle incorporated in The Netherlands: -- EUR342,500,000 Class A Primary Senior Secured Floating Rate Notes due 2022*: (P)Aaa; -- EUR40,000,000 Class B Primary Senior Secured Floating Rate Notes due 2022*: (P)Aa2; -- EUR30,000,000 Class C Primary Senior Secured Deferrable Floating Rate Notes due 2022*:(P)Aa2; and -- EUR20,000,000 Class D Primary Senior Secured Deferrable Floating Rate Notes due 2022*: (P)Baa3. The Primary Issuer will also issue EUR42,000,000 Class M Primary Mezzanine Secured Notes due 2022* and EUR25,500,000 Class F-2 Primary Subordinated Notes due 2022* which are not rated by Moody's. The unrated Class M Primary Mezzanine Notes will be acquired by Highlander Euro CDO II (Cayman) Limited, a special purpose vehicle incorporated in Cayman Islands, directly from the Primary Issuer. It will be re-issued in a split form into a EUR17,500,000 Class E Secondary Senior Secured Deferrable Floating Rate Notes due 2022* and a EUR24,500,000 Class F-1 Secondary Mandatorily Redeemable Preferred Securities. The Class F-1 Secondary Mandatorily Redeemable Preferred Securities effectively rank pari passu to the Class F-2 Primary Subordinated Notes due 2022*. The provisional rating is assigned to the notes to be issued by the Secondary Issuer: -- EUR13,750,000 Class E Secondary Senior Secured Deferrable Floating Rate Notes due 2022*: (P)Ba3. These ratings address the expected loss of noteholders by the legal final maturity date in December 2022*. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments and other market risks, have not been addressed and may have a significant effect on yield to investors. These ratings are based upon: 1. an assessment of the credit quality and of the diversification of the assets to be included in the portfolio; 2. an assessment of the eligibility criteria, reinvestment criteria and portfolio limits applicable to the future additions to the portfolio; 3. the protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 4. the expertise of Highland Capital Management Europe, Limited in the management of loans portfolios; and 5. the legal and structural integrity of the transaction. This transaction is a high yield collateralized loan obligation related to a portfolio of EUR490 million comprised of senior loans, mezzanine loans and high-yield bonds. The portfolio is dynamic and Highland Capital Management Europe, Limited will provide investment advice to the Primary Issuer in respect thereof. The portfolio will be approximately 90% ramped-up at closing, and is expected to be fully ramped-up within six months after closing, subject to compliance with the eligibility criteria and portfolio. This transaction was arranged by Goldman Sachs International and managed by Highland Capital Management Europe, Limited. Moody's issues prospective ratings in advance of the final sale of securities, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating may differ from a prospective rating. HIGHLANDER EURO: S&P Rates EUR24.5 Million Class E Notes at BB- --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the class A and B primary senior secured floating-rate notes and to the class C and D primary senior secured deferrable floating-rate notes to be issued by Highlander Euro CDO II B.V., a Dutch special purpose entity. A preliminary credit rating has also been assigned to the class E secondary senior secured deferrable floating-rate notes to be issued by Highlander Euro CDO II (Cayman) Ltd., a Cayman Islands special purpose entity. At closing, Highlander II will issue floating-rate notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a collateral pool of predominantly senior secured leveraged loans. At the same time the class M primary notes will be acquired by Highlander Cayman II, which will in turn issue class E secondary notes and class F1 secondary preference securities. The payment obligations under the secondary securities will be equal and funded by payments received by Highlander Cayman II for the class M primary notes. Highlander II will be Highland Capital Management Europe, Ltd.'s second European CLO. This is in addition to ING's Copernicus CLO program that it inherited when HCMLP, the parent company, acquired ING Capital Management Ltd., in April 2005. Ratings List Highlander Euro CDO II B.V. and Highlander Euro CDO II (Cayman)Ltd. EUR700 Million Secured Floating-Rate And Subordinated Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ Highlander Euro CDO II B.V. A (primary) AAA 479.5 B (primary) AA 56.0 C (primary) A- 42.0 D (primary) BBB- 28.0 M (primary) (1) NR 58.8 F-2 (primary) NR 35.7 Highlander Euro CDO II (Cayman) Ltd. E (secondary) (1) BB- 24.5 F-1 (secondary preferred securities)(1) NR 34.3 NR-Not rated. (1) The class M primary notes will be acquired by Highlander Euro CDO II (Cayman) Ltd., which will in turn issue the class E secondary notes and the class F-1 secondary preferred securities. LUCENT TECHNOLOGIES U.S. Congress Okays Merger with Alcatel ------------------------------------------------------------ Alcatel S.A. and Lucent Technologies Inc. have received approval from the Committee on Foreign Investment in the United States, under provisions of the Exon-Florio amendment, to proceed with their proposed merger transaction. Alcatel and Lucent submitted a voluntary notice of the merger to CFIUS in August 2006. CFIUS prepared a recommendation on the merger transaction to the President of the United States in the final phase of the approval process and the President has accepted the CFIUS recommendation that he not suspend or prohibit the proposed merger transaction, provided that, in time periods specified, the companies execute a National Security Agreement and Special Security Agreement to which they have agreed with U.S. Government agencies. Alcatel and Lucent will execute within the specified time periods the National Security Agreement and Special Security Agreement to which they have previously agreed with U.S. Government agencies. The companies are moving quickly to finalize the transaction and expect to complete the merger on Nov. 30, 2006, which is within the six-to twelve-month timeframe originally announced April 2, 2006. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. About Lucent Technologies Headquartered in Murray Hill, New Jersey, Lucent Technologies (NYSE: LU) -- http://www.lucent.com/-- designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Lucent also operates in Austria, Belgium, China, Czech republic, Denmark, France, Germany, India, Ireland, Japan, Korean, Brazil, CIS, the Netherlands, Poland, Slovak Republic, Spain, Sweden, Switzerland, Russia, and the United Kingdom. * * * As reported in TCR-Europe on Nov. 9, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. POLYMER GROUP: Moody's Changes Outlook on Underperformance ---------------------------------------------------------- Moody's Investors Service changed the rating outlook of Polymer Group, Inc. to negative from stable. The change in outlook reflects the company's performance at levels, which are below Moody's expectations from the time of its prior review in November 2005. Specifically, the change in outlook expresses concern regarding negative cash flow generation, potentially narrow cushions under financial covenants, weakness in demand in certain segments and the effect of lags in passing on increases to converters in a rising raw material price environment, which resulted in substantive reductions in gross margins in 2006. Moody's is also concerned that such challenges will be harder to manage at a time when top management is in transition. Notwithstanding high financial leverage, weak interest coverage and weaker than expected cash flow generation in 2006 for the rating category, the B1 ratings remain supported by PGI's competitive strengths, multi-year contracts (some indexed to raw materials), long-standing customer relationships and Moody's assessment of overall enterprise value in relation to debt levels. The ratings are further supported by the successful completion of several capital projects, including the expansion of the company's manufacturing capacity in Suzhou, China and North Carolina, US in 2006 and the potential contribution from these assets in 2007 and beyond. The ratings reflect pricing and volume constraints imposed by intense competition in both nonwovens and oriented polymers from often larger and financially stronger companies. The ratings are further constrained by business requirements for substantial and ongoing capital expenditures (including a growth component) to maintain, improve and expand manufacturing facilities, as well as weak interest coverage for the rating category. Continuing negative or weak cash flow metrics, significant debt- financed acquisitions and lack of progress toward improved total leverage metrics could result in a downgrade. If the company is able to execute on existing investments in emerging markets thereby improving free cash flow to debt ratios to about 5% on a sustainable basis, this could stabilize the ratings outlook. Meaningful steps toward debt reduction resulting in adjusted debt to EBITDA ratios below 4 times and improved EBIT to interest coverage above 1.5 times could result in improvements in rating outlook or eventually to an upgrade. The negative outlook applies to these ratings: -- B1 (LGD3, 33%) rated US$45 million senior secured revolver due 2010; -- B1 (LGD3, 33%) rated US$410 million senior secured term loan B due 2012; -- B1 Corporate Family Rating; and -- B2 Probability of Default Rating. The outlook for the ratings was changed to negative from stable. Headquartered in Charlotte, North Carolina, Polymer Group, Inc., is one of the world's leading producers of nonwovens and produces and markets engineered materials. PGI is a global supplier to leading consumer and industrial product manufacturers, including Procter & Gamble and Johnson & Johnson. PGI's spunmelt and spunlace products are engineered to specification and sold principally to converters that manufacture a wide range of end-use products, including, for example, disposable diapers, wipes, surgical gowns, wound care dressings and protective apparel. Durable uses include furniture and bedding, electrical insulation and geotextiles. The company operates 22 manufacturing facilities in 10 countries throughout the world. Net revenues for the twelve months ended Sept. 30, 2006 were about US$1 billion. =============== P O R T U G A L =============== INTERTAPE POLYMER: Amends Debt Facilities to Ease Covenants ------------------------------------------------------------ Intertape Polymer Group Inc. executed definitive documentation to amend its credit facilities, in a manner, which will accommodate the recent changes in its business results and provide it with the flexibility needed to manage its business. The amendments to the credit facilities permit the add back of certain one-time charges in connection with the Company's continuing cost cutting efforts, accommodate its impairment charge and relax the interest coverage covenant, leverage ratio covenant and fixed charges covenant. The Company's credit facilities as amended will permit IPG to exclude from the calculation of its consolidated earnings before income taxes, depreciation and amortization up to $4.35 million in restructuring charges related to severance and retail restructuring costs, goodwill impairment charges of up to $120 million and costs associated with the amendment of the credit facilities, all of which are expected to be taken in the fiscal quarters ending Dec. 31, 2006 or March 31, 2007. "IPG appreciates the support of its Lenders in approving these amendments," H. Dale McSween, Interim Chief Executive Officer stated. "The Company continues to implement its restructuring plan and the amendments are an important step in that process." About Intertape Polymer Based in Montreal, Quebec and Sarasota/Bradenton, Florida, Intertape Polymer Group Inc. (TSX: ITP)(NYSE: ITP) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. The Company employs approximately 2450 employees with operations in 18 locations, including 13 manufacturing facilities in North America and one in Europe. * * * As reported in the TCR-Europe on Oct. 6, Standard & Poor's Ratings Services placed its ratings, including its 'B+' corporate credit rating, on Intertape Polymer Group Inc. on CreditWatch with negative implications. The CreditWatch placement follows the company's recent announcement that its Board of Directors will initiate a process to explore various strategic and financial alternatives. The nature of options being explored and the timeline of the exercise have not been announced, but the culmination of such an exercise could result in a change of ownership. =========== R U S S I A =========== BUILDER LLC: Court Names D. Natalkin as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. D. Natalkin as Insolvency Manager for LLC Builder. He can be reached at: D. Natalkin Apartment 43 Building 5 Y. Gagarina Pr. 26 196135 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-37333/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Builder Zheleznovodskaya Str. 17/5 St. Petersburg Region Russia CASINO VENICE: Court Names D. Natalkin as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. D. Natalkin as Insolvency Manager for CJSC Casino Venice. He can be reached at: D. Natalkin Apartment 43 Building 5 Y. Gagarina Pr. 26 196135 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-37339/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Casino Venice Korablestroiteley Str. 21 St. Petersburg Region Russia CHEGDOMYSNKAYA FACTORY: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Khabarovsk Region commenced bankruptcy supervision procedure on LLC Chegdomysnkaya Factory Dry- Cleaner's. The case is docketed under Case No. A73-8782/ 2006-39. The Temporary Insolvency Manager is: V. Kaminskiy Post User Box 51/19 680031 Khabarovsk Region Russia The Debtor can be reached at: LLC Chegdomysnkaya Factory Dry-Cleaner's Pionerskaya Str. 2 Chegdomyn 682630 Khabarovsk Region Russia CHUSOVSKIYE DIARY: Court Names Y. Svetlakov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Perm Region appointed Mr. Y. Svetlakov as Insolvency Manager for CJSC Chusovskiye Diary Products. He can be reached at: Y. Svetlakov Bereznikovskaya Str. 75A-12 Berezniki 618400 Perm Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A50-15562/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: CJSC Chusovskiye Diary Products Krupskoy Str. 14 Chusovoy Perm Region Russia EAR CJSC: Khabarovsk Court Names A. Krylov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Khabarovsk Region appointed Mr. A. Krylov as Insolvency Manager for CJSC Ear (TIN 2707000320). He can be reached at: A. Krylov Office 9 Amurskiy Avenue 11 680028 Khabarovsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-73-10143/2006-9. The Debtor can be reached at: CJSC Ear Dzerzhinskogo Str. 4 Vikin Khabarovsk Region Russia GAS-PROM-OPTICS: Tyumen Bankruptcy Hearing Slated for Jan. 30 ------------------------------------------------------------- The Arbitration Court of Tyumen Region will convene at 9:00 a.m. on Jan. 30, 2007, to hear the bankruptcy supervision procedure on CJSC Gas-Prom-Optics. The case is docketed under Case No. A70-8093/3-06. The Temporary Insolvency Manager is: A. Skilov Kedrovaya 127a Tyumen Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: CJSC Gas-Prom-Optics Respubliki Str. 45/4 Tyumen Region Russia GAZPROM NEFT: Considers Joint Venture with OAO Lukoil ----------------------------------------------------- OAO Lukoil and OAO Gazprom Neft will form a joint venture for operating projects and acquiring assets in Russia and abroad, RIA Novosti says. "It will unite our resources for joint projects in currently operating oil fields and in obtaining licenses for new ones," Ravil Maganov, a member of Lukoil management board, said. The companies, Mr. Maganov said, are currently holding talks on the matter. Mr. Maganov declined to divulge the stakes of the companies in the joint venture. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) -- http://www.lukoil.com/-- explores and produces oil & gas, petroleum products and petrochemicals, and markets the outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. About Gazprom Neft Headquartered in Moscow, Russia, Gazprom Neft OAO -- http://www.gazprom-neft.ru/-- explores, produces, refines, markets, produces and sells petroleum products. The Company holds oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as in the Omsk and Tomsk regions, and in Chukotka. The Company's main oil processing center is the Omsk Refinery. * * * As reported in the TCR-Europe on Nov. 20, Standard & Poor's Ratings Services placed its 'BB+' corporate credit rating and 'ruAA+' national scale rating on Russia-based oil company JSC Gazprom Neft on CreditWatch with positive implications. GAZPROM NEFT: Completes Navigator.55 Program at Omsk Refinery ------------------------------------------------------------- Gazprom Neft OAO and Shell Global Solutions completed the implementation of the joint Navigator.55 Program aimed at Omsk Refinery improvement. The parties have met the mutual commitments under the Program. Shell Global Solutions and Omsk Refinery specialists have jointly prepared 28 scenarios of Omsk Refinery development, and four of them have been selected. Shell Global Solutions and Omsk Refinery specialists have also shared their experience, and consultancy services have been provided during the Omsk Refinery Improvement Program. At present, the parties consider the Navigator.55 Project completed. However, the License Agreement for the software and model purchase and use at Omsk Refinery signed by the companies continues to be valid. Gazprom Neft and Shell Global Solutions are looking forward to future cooperation within new projects and Programs. Headquartered in Moscow, Russia, Gazprom Neft OAO -- http://www.gazprom-neft.ru/-- explores, produces, refines, markets, produces and sells petroleum products. The Company holds oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as in the Omsk and Tomsk regions, and in Chukotka. The Company's main oil processing center is the Omsk Refinery. * * * As reported in the TCR-Europe on Nov. 20, Standard & Poor's Ratings Services placed its 'BB+' corporate credit rating and 'ruAA+' national scale rating on Russia-based oil company JSC Gazprom Neft on CreditWatch with positive implications. GOLDEN TELECOM: Commences Internet Project in Nizhny Novgorod ------------------------------------------------------------- Golden Telecom Inc. revealed that Agentstvo Delovoy Svyazi, its subsidiary in Nizhny Novgorod, launched a massive Internet into each Building project. Broadband rollout is a key component of Golden Telecom's strategy. As reported earlier, Golden Telecom plans to rollout a Fiber-to-the-Building based network in Nizhny Novgorod which will cover 250,000 households. The Company expects to provide Triple Play services including High-Speed Internet Access, VoIP, and Digital TV. At the first stage of the project, a pilot zone embracing 1,560 households was commissioned in a residential district of Nizhny Novgorod. In the future, two more pilot zones with 2,297 and 3,488 households will be commissioned. About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including approximately 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. HEAT NETWORK: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Chuvashiya Republic commenced bankruptcy supervision procedure on OJSC Heat Network. The case is docketed under Case No. A79-6159/2006. The Temporary Insolvency Manager is: N. Markelov Pochainskaya Str. 20 603001 N. Novgorod Region Russia The Debtor can be reached at: OJSC Heat Network Mariinskiy Posad Chuvashiya Republic Russia INKOR-INVEST: Court Names N. Pomelov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. N. Pomelov as Insolvency Manager for CJSC Investment Company Inkor-Invest (TIN 7720024463). He can be reached at: N. Pomelov Post User Box 628 603000 N. Novgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-32190/06-123-380B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Investment Company Inkor-Invest Building 2 2nd Vladimirskaya Str. 62A Moscow Region Russia INTERNATIONAL CORP: Court Names M. Vasilega to Manage Assets ------------------------------------------------------------ The Arbitration Court of Smolensk Region appointed Mr. M. Vasilega as Insolvency Manager for CJSC International Corporation of Finance and Investments. He can be reached at: M. Vasilega Post User Box 100 105318 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-62-943-N/06(2825/2006). The Debtor can be reached at: CJSC International Corporation of Finance and Investments Smirnova Square 1 Smolensk Region Russia INTER-SUGAR: Court Names L. Ponomareva as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow Region appointed Ms. L. Ponomareva as Insolvency Manager for CJSC Inter-Sugar (TIN 7716004810). She can be reached at: L. Ponomareva Post User Box 600 603000 Nizhniy Novgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-19349/06-95-205B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Inter-Sugar Building 1 Ivovaya Str. 5/8 Moscow Region Russia KHASYNSKIY FACTORY: Court Names V. Monastyrskiy to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Magadan Region appointed Mr. V. Monastyrskiy as Insolvency Manager for OJSC Khasynskiy Factory of Wall Materials. He can be reached at: V. Monastyrskiy Office 90 Proletarskaya Str. 12 685000 Magadan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A37-1527/06-4/14b. The Debtor can be reached at: OJSC Khasynskiy Factory of Wall Materials Zavodskaya Str. 2 Stekolnyj 686134 Magadan Region Russia KRASNOGORSKOYE DSPMK: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Udmurtiya Republic commenced bankruptcy supervision procedure on OJSC Krasnogorskoye Dspmk (TIN 1815000068). The case is docketed under Case No. A71-005067/ 2006-G21. The Temporary Insolvency Manager is: V. Nagovitsyn Post User Box 972 Izhevsk 426069 Udmurtiya Republic Russia The Arbitration Court of Udmurtiya Republic is located at: Lomonosova Str. 5 Izhevsk 426004 Udmurtiya Republic Russia The Debtor can be reached at: OJSC Krasnogorskoye Dspmk Yubileynaya Str. 12 Krasnogorye 427650 Udmurtiya Republic Russia KOZHEVNIKOVO-GAS-SERVICE: Court Names I. Gorn to Manage Assets -------------------------------------------------------------- The Arbitration Court of Tomsk Region appointed I. Gorn as Insolvency Manager for OJSC Kozhevnikovo-Gas-Service. He can be reached at: I. Gorn Post User Box 2513 634045 Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7475/06. The Debtor can be reached at: OJSC Kozhevnikovo-Gas-Service Gagarina Str. 17 Kozhevnikovo Tomsk Region Russia KURILOVSKOYE CJSC: Court Names A. Khromov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Saratov Region appointed Mr. A. Khromov as Insolvency Manager for CJSC Kurilovskoye. He can be reached at: A. Khromov Barnaulskaya Str. 34 410049 Saratov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-420B/05-23. The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: CJSC Kurilovskoye Kurilovka Novouzenskiy Region Saratov Region Russia LENINGRADSKIY MAST-IMPREGNATION: Asset Sale Slated for Dec. 11 -------------------------------------------------------------- CJSC Financial Authorized Company of Anti-Crisis Management, the bidding organizer for OJSC Leningradskiy Mast-Impregnation Factory, will open a public auction for the company's properties at 10:00 a.m. on Dec. 11 at: CJSC Financial Authorized Company of Anti-Crisis Management 3rd floor Moskovskiy Pr. 111 St. Petersburg Region Russia The assets for sale are: -- Lot1: Immovable property of CJSC Leningradskiy Mast- Impregnation Factory. Starting price is RUR33,136,000. The deposit is RUR300,000. -- Lot2: Movable property of CJSC Leningradskiy Mast- Impregnation Factory. Starting price is RUR1,745,000. The deposit is RUR100,000. To participate, bidders have until 12:30 p.m. on Dec. 8 to deposit the amount to: CJSC Financial Authorized Company of Anti-Crisis Management Settlement Account 40702810655220116079i Severo-Zapadnom Branch of Sberbank RF MOSB 1877 Correspondent Account 30101810500000000653 BIK 044030653 Bidding documents must be submitted to: CJSC Financial Authorized Company of Anti-Crisis Management 3rd floor Moskovskiy Pr. 111 St. Petersburg Region Russia The Debtor can be reached at: OJSC Leningradskiy Mast-Impregnation Factory Leningradskoye Shosse 1 Otradnoye Kirovskiy Region Leningrad Region Russia LUKOIL OAO: Considers Joint Venture with OAO Gazprom Neft --------------------------------------------------------- OAO Lukoil and OAO Gazprom Neft will form a joint venture for operating projects and acquiring assets in Russia and abroad, RIA Novosti says. "It will unite our resources for joint projects in currently operating oil fields and in obtaining licenses for new ones," Ravil Maganov, a member of Lukoil management board, said. The companies, Mr. Maganov said, are currently holding talks on the matter. Mr. Maganov declined to divulge the stakes of the companies in the joint venture. About Gazprom Neft Headquartered in Moscow, Russia, Gazprom Neft OAO -- http://www.gazprom-neft.ru/-- explores, produces, refines, markets, produces and sells petroleum products. The Company holds oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as in the Omsk and Tomsk regions, and in Chukotka. The Company's main oil processing center is the Omsk Refinery. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) -- http://www.lukoil.com/-- explores and produces oil & gas, petroleum products and petrochemicals, and markets the outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. * * * As reported in the TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. LUKOIL OAO: Budgets US$27 Bln for Overseas Production Until 2017 ---------------------------------------------------------------- OAO Lukoil will invest around US$27 billion through 2017 to expand its overseas production and fund projects and acquisitions, says RIA Novosti citing Andrei Kuzyaev, President of Lukoil Overseas Holding Ltd. "In the long-term, in line with our development strategy, we plan to produce at least 40 million tons of hydrocarbons by 2017 outside Russia, and to invest about US$27 billion not only in current projects, but also in new acquisitions," Mr. Kuzyaev said. Investments for Lukoil Overseas include: -- US$2 billion investment to develop Kandym-Khauzak-Shady deposit in Uzbekistan, to produce 11 billion cubic meters of natural gas annually by 2011-2012; -- development of the Shah Deniz deposit in Azerbaijan, to start producing gas at yearend; -- development of the Zhambai oil field in Kazakhstan through a consortium comprising Lukoil (25%), KazMunaiGaz (50%) and Repsol (25%); and -- plans to develop an oil field in Iran, possibly the Azadegan deposit. Mr. Kuzyaev recently signed an agreement with National Iranian Oil Company to explore various deposits in Iran. Mr. Kuzyaev said Lukoil is cooperating with Norsk Hydro on three oil- prospecting sites at Iran's Anaran deposit, under an agreement signed in February 2003. Ravil Maganov, LUKoil's first executive vice president, said the company is eyeing Iran's Azadegan deposit. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) -- http://www.lukoil.com/-- explores and produces oil & gas, petroleum products and petrochemicals, and markets the outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. * * * As reported in the TCR-Europe on July 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. MAGLAJN ITM: Bankruptcy Hearing Slated for March 13 --------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region will convene on Mar. 13, 2007, to hear the bankruptcy supervision procedure on CJSC Maglajn Itm (TIN 7826193440). The case is docketed under Case No. A56-33366/2006. The Temporary Insolvency Manager is: I. Rulev Apartment 108 Klochkov Per. 4 k.2 193318 St. Petersburg Region Russia The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Maglajn Itm Building 4N Admiralteyskaya Quay 12 St. Petersburg Region Russia MICHURISNKIY ECOLOGIST: Names V. Kuznetsov to Manage Assets ----------------------------------------------------------- The Arbitration Court of Tambov Region appointed Mr. V. Kuznetsov as Insolvency Manager for OJSC Michurisnkiy Ecologist. He can be reached at: V. Kuznetsov Yubileynaya Str. 46 Ekaterinino Nikiforovskiy Region Tambov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-12169/15-18. The Debtor can be reached at: OJSC Michurisnkiy Ecologist Zavoronezhskoye Michurinskiy Region 393749 Tambov Region Russia MONOLITH LLC: Court Names A. Polishenko as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Sakha Republic-Yakutiya appointed Mr. A. Polishenko as Insolvency Manager for LLC Building Company Monolith. He can be reached at: A. Polishenko Office 65 Korolenko Str. 28 Yakutsk 677000 Sakha Republic-Yakutiya Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A58-5279/06. The Arbitration Court of Sakha Republic-Yakutiya is located at: Kurashova Str. 28 677000 Sakha Republic-Yakutiya Russia The Debtor can be reached at: LLC Building Company Monolith Yakutsk Sakha Republic-Yakutiya Russia MOSAIC COMPANY: Prices Units' Offer to Buy US$1.5-Bil Sr. Debts --------------------------------------------------------------- The Mosaic Company has priced the previously announced tender offers and consent solicitations by its subsidiaries: * Mosaic Global Holdings Inc., to purchase for cash any and all of its: -- 6.875% Debentures due 2007, -- 10.875% Senior Notes due 2008, -- 11.250% Senior Notes due 2011, -- 10.875% Senior Notes due 2013; and * Phosphate Acquisition Partners L.P. to purchase for cash any and all of its 7% Senior Notes due 2008. The terms of the tender offers and consent solicitations for the debt securities are detailed in Mosaic Global Holdings Inc.'s and Phosphate Acquisition Partners L.P.'s respective Offer to Purchase and Consent Solicitation Statements, each dated Oct. 31, 2006. The total consideration for each US$1,000 principal amount of the 2011 Notes validly tendered and not withdrawn at or prior to 5:00 p.m. New York time on Nov. 14, is US$1,058.75, which includes a consent payment of US$2.50. The total consideration for each of the remaining senior notes and debentures validly tendered and not withdrawn at or prior to the Consent Date was determined as of 2:00 p.m., New York City time, on Nov. 14, 2006, using the yield on the applicable U.S. Treasury Security, as calculated by the Dealer Manager and Solicitation Agent in accordance with standard market practice, based on the bid-side price for such applicable U.S. Treasury Note. The total consideration for each US$1,000 principal amount of the 2007 Debentures validly tendered prior to the Consent Date was determined using the yield on the 3-7/8% U.S. Treasury Security due July 31, 2007 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 3-7/8% U.S. Treasury Security at the Time of Pricing was 5.047%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2007 Debentures validly tendered and not withdrawn at or prior to the Consent Date is US$1,007.93, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2007 Debentures validly tendered after the Consent Date but at or before the "Expiration Date" is US$977.93, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the MGH 2008 Notes validly tendered prior to the Consent Date was determined using the yield on the 4-7/8% U.S. Treasury Security due May 31, 2008 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 4-7/8% U.S. Treasury Security at the Time of Pricing was 4.810%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of MGH 2008 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,079.23, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of MGH 2008 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$1,049.23, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the 2013 Notes validly tendered prior to the Consent Date was determined using the yield on the 3-1/4% U.S. Treasury Security due August 15, 2008 at the Time of Pricing plus a fixed spread of 50 basis points. The yield on the 3-1/4% U.S. Treasury Security at the Time of Pricing was 4.753%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2013 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,138.33, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 2013 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$1,108.33, which equals the total consideration less the consent payment. The total consideration for each US$1,000 principal amount of the PAP 2008 Notes validly tendered prior to the Consent Date was determined using the yield on the 3% U.S. Treasury Security due February 15, 2008 at the Time of Pricing plus a fixed spread of 30 basis points. The yield on the 3% U.S. Treasury Security at the Time of Pricing was 4.900%. Accordingly, the total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of the PAP 2008 Notes validly tendered and not withdrawn at or prior to the Consent Date is US$1,020.66, which includes a consent payment of US$30.00. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of the PAP 2008 Notes validly tendered after the Consent Date but at or before the Expiration Date is US$990.66, which equals the total consideration less the consent payment. The offers will expire at midnight, New York City time, on November 29, 2006, unless extended by Mosaic Global Holdings or Phosphate Acquisition Partners, as applicable, in its sole discretion. The consummation of the tender offers is subject to several conditions, including the receipt of net proceeds from financings sufficient to pay for Senior Notes and Debentures accepted in the tender offers. Senior Notes and Debentures tendered prior to the Consent Date may not be withdrawn after the Consent Date unless Mosaic Global Holdings or Phosphate Acquisition Partners, as applicable, reduces the amount of the tender offer consideration, the consent payment or the principal amount of Senior Notes or Debentures subject to the offers or is otherwise required by law to permit withdrawal. The offers are made upon the terms and subject to the conditions set forth in the Offers to Purchase and Consent Solicitation Statements dated October 31, 2006 that have been distributed to registered holders of the debt securities. Copies of the Offer to Purchase and Consent Solicitation Statements can be obtained from: MacKenzie Partners, Inc. Attention: Jeanne Carr or Simon Coope Phone: (800) 322-2885 None of The Mosaic Company, Mosaic Global Holdings Inc., Phosphate Acquisition Partners L.P., J.P. Morgan Securities Inc., as the Dealer Manager and Solicitation Agent, or the Information Agent/Depositary makes any recommendation as to whether or not holders should sell their Senior Notes or Debentures pursuant to the offers, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decision as to whether to sell Senior Notes and Debentures, and if so, the principal amount of Senior Notes and Debentures to sell. Questions concerning the terms of the offers may be directed to: J.P. Morgan Securities Inc. Dealer Manager and Solicitation Agent Attention: Laura Yachimski Phone: (212) 270-3994 (call collect) Questions concerning procedures regarding the offers may be directed to MacKenzie Partners. About The Mosaic Company The Mosaic Company -- http://www.mosaicco.com/-- produces and markets concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. In Europe, the company maintains operations and/or sales offices in the Ukraine, France and Russia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 14, Standard & Poor's Ratings Services revised its outlook on The Mosaic Co. to negative from stable. Standard & Poor's affirmed its 'BB' long-term and 'B-1' short-term corporate credit ratings on the company. As reported in the TCR-Europe on Nov. 9, 2006, Fitch assigned a 'BB' rating to The Mosaic Company's proposed senior unsecured notes due 2014 and 2016 and a 'BB+' rating to the company's proposed senior secured term loans. The ratings affected approximately US$950 million of new senior notes and US$1.05 billion of new term loans. Moody's Investors Service assigned Ba1 ratings to The Mosaic Company's proposed new US$1.05 billion guaranteed senior secured credit facilities. Moody's also assigned B1 ratings to US$900 million of proposed senior unsecured debt. Mosaic's Ba3 corporate family rating was affirmed but the ratings of the existing revolver and the term loan A were downgraded to Ba1 from Baa3 and those of the existing senior unsecured debt lowered to B1 from Ba3 in accordance with the LGD methodology. Moody's said the ratings outlook is stable. NEVO-WOOD CJSC: Court Names N. Dremanov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. N. Dremanov as Insolvency Manager for CJSC Nevo- Wood (TIN 4703029681). He can be reached at: N. Dremanov 5-137 Dimitrova Syktyvkar 167023 Komi Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-17211/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: N. Dremanov 5-137 Dimitrova Syktyvkar 167023 Komi Republic Russia NORTH-WEST TRANSPORT-ENERGY: Names D. Natalkin to Manage Assets --------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. D. Natalkin as Insolvency Manager for CJSC North- West Transport-Energy Company. He can be reached at: D. Natalkin Apartment 43 Building 5 Y. Gagarina Pr. 26 196135 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-37336/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC North-West Transport-Energy Company Room 3N Letter B 14th Liniya 35 V.O. St. Petersburg Region Russia NOVAYA LLC: Kursk Court Names V. Selin as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Kursk Region appointed Mr. V. Selin as Insolvency Manager for LLC Poultry Farm Novaya. He can be reached at: V. Selin Volokonsk Bolshesoldatskiy Region 308055 Kursk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A35-5805/06 g. The Arbitration Court of Kursk Region is located at: K. Marksa Str. 25 305004 Kursk Region Russia The Debtor can be reached at: LLC Poultry Farm Novaya Polevaya Medvenka Medvenskiy Region Kursk Region Russia ROS-OIL-GAS-INTER-STROY: Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Stavropol Region commenced bankruptcy supervision procedure on CJSC Ros-Oil-Gas-Inter-Stroy. The case is docketed under Case No. A63-2362/05-S5. The Temporary Insolvency Manager is: D. Sergienko 6th Floor 1st Entrance Lenina Str. 219 355017 Stavropol Region Russia The Arbitration Court of Stavropol Region is located at: Mira Str. 4586 Stavropol Region Russia The Debtor can be reached at: D. Sergienko 6th Floor 1st Entrance Lenina Str. 219 355017 Stavropol Region Russia RUSSIAN CAPITAL: Court Names N. Dremanov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. N. Dremanov as Insolvency Manager for CJSC Investment Company Russian Capital. He can be reached at: N. Dremanov Dimitrova 5-137 Syktyvkar 167023 Komi Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-2573/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Investment Company Russian Capital 31a-22n Mokhovaya Str. St. Petersburg Region Russia SERVICE CENTRE: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy Autonomous Region commenced bankruptcy supervision procedure on CJSC Service Centre Technology and Equipment for Well's Repair (TIN 8603076117). The case is docketed under Case No. A-75-7571/ 2006. The Temporary Insolvency Manager is: A. Rupchev Office 184 Internatsionalanaya Str. 18 628600 Nizhnevartovsk Region Russia The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is located at: Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: CJSC Service Centre Technology and Equipment for Well's Repair 457144 Khanty-Mansiyskiy Autonomous Region Russia SORTAVALSKIY FISHING: Court Names B. Remnev to Manage Assets ------------------------------------------------------------ The Arbitration Court of Kareliya Republic appointed Mr. B. Remnev as Insolvency Manager for CJSC Sortavalskiy Fishing Factory (OGRN 1021000943501, TIN 1007001654). He can be reached at: B. Remnev Office 23 Liteynyj Pr. 36 191104 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A26-6879/2006-182. The Arbitration Court of Kareliya Republic is located at: Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Republic Russia The Debtor can be reached at: CJSC Sortavalskiy Fishing Factory Promyshlennaya Str. 8 Sortavala 186790 Kareliya Republic Russia TRANS-OIL-RESERVE: Court Names S. Suvorov as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. S. Suvorov as Insolvency Manager for CJSC Trans-Oil-Reserve. He can be reached at: S. Suvorov Post User Box 183 127018 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-45344/06-103-842B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Trans-Oil-Reserve Building 1 Pokrovka 3/7 Moscow Region Russia URMARSKIY DIARY: Court Names N. Ignatyev as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Chuvashiya Republic appointed Mr. N. Ignatyev as Insolvency Manager for OJSC Urmarskiy Diary. He can be reached at: N. Ignatyev Guzovskogo Str. 7/54 Cheboksary Chuvashiya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A79-6398/2005. The Debtor can be reached at: OJSC Urmarskiy Diary Urmary Chuvashiya Republic Russia VIMPEL-COMMUNICATIONS: Completes Armentel Acquisition Deal ---------------------------------------------------------- OJSC Vimpel-Communications concluded a deal to acquire Hellenic Telecommunications Organization's 90% stake in CJSC Armenia Telephone Company for EUR341.9 million, including the assumption of EUR40 million in debts, RIA Novosti says. The parties finalized the deal after Armenia's public services regulation authorities approved the sale on Nov. 14. The deal formalizes Vimpelcom's entry into the Armenian telecommunications market, capturing an existing 600,000 fixed- line and 400,000 mobile service subscribers through the GSM 900 and CDMA standards. Andrei Bliznyuk, Vimpelcom's nominee for the director post at Armentel, said the company would invest US$100 million in the Armenian telecom sector in 2007. Vimpelcom bested fellow bidders MTC, ETISALAT, VTEL Holdings and Knightsbridge Associates in a tender launched by OTE. As reported in the TCR-Europe on Nov. 13, the Armenian government is selling its 10% stake in Armentel to Vimpelcom. A sale, however, hinges on the condition that Vimpelcom discard further expansion plans in the country, Communications Minister Andranik Manukyan told RIA Novosti. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in the TCR-Europe on Oct. 12, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel- Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. VOLGOGRAD-PROJECT-STROY: Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Volgograd Region commenced bankruptcy supervision procedure on CJSC Volgograd-Project-Stroy (TIN 3443040946). The case is docketed under Case No. A12-15357/ 06-s48. The Temporary Insolvency Manager is: V. Pimenov Post User Box 2831 400120 Volgograd Region Russia The Debtor can be reached at: CJSC Volgograd-Project-Story Nilskaya Str. 4 Volgograd Region Russia WORLD OF SEA: Kamchatka Bankruptcy Hearing Slated for Jan. 18 ------------------------------------------------------------- The Arbitration Court of Kamchatka Region will convene on Jan. 18, 2007, to hear the bankruptcy supervision procedure on CJSC World of Sea. The case is docketed under Case No. A24-2135/06-16. The Temporary Insolvency Manager is: E. Khramenok Post User Box 113 683023 Petropavlovsk-Kamchatskiy 23 GOS Russia The Debtor can be reached at: CJSC World of Sea 50 Let Oktyabrya Pr. 20 Kovran Tigilskiy Region 688621 Kamchatka Region Russia ========= S P A I N ========= AYT GENOVA: Moody's Rates EUR10.7-Mln Series D Notes at (P)Ba3 -------------------------------------------------------------- Moody's Investors Service assigned provisional credit ratings to five series of mortgage-backed securities (Bonos de Titulizacion Hipotecaria) to be issued by AyT GENOVA HIPOTECARIO IX Fondo de Titulizacion de Hipotecaria, a Spanish asset securitization fund that has been created by Ahorro y Titulizacion, S.G.F.T, S.A. Ratings assigned: -- EUR217.5 million Series A1 notes: (P)Aaa; -- EUR750 million Series A2 notes: (P)Aaa; -- EUR11 million Series B notes: (P)Aa3; -- EUR10.8 million Series C notes: (P)Baa1; and -- EUR10.7 million Series D notes: (P)Ba3. The ratings address the expected loss posed to investors by the legal final maturity (July 2039). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date, and not at any other expected maturity date. The ratings do not address the full redemption of the notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Barclays is securitizing the loans from its Hipoteca Remunerada, a loan product, which has very strong underwriting criteria as Barclays is targeting affluent clients in Spain. According to Moody's, this deal benefits from several credit strengths including: (1) good quality collateral in terms of weighted average LTV (59.89%), seasoning (0.96 years) and geographical diversification; (2) interest rate swap to hedge interest rate risk in the transaction; (3) a reserve fund that is fully funded upfront to cover any potential shortfall in interest and principal; (4) an 18-month artificial write-off mechanism; (5) the fact that 100% of the loans are secured by first-lien residential mortgages; and (6) the quality of Barclays Bank S.A as originator and servicer. However, Moody's notes that the deal also features credit weaknesses, notably: (1) lack of information (employment type); however, a penalty was accordingly applied when calculating the credit enhancement, (2) weak margin on the loans (43 bps over 12-month Euribor). This risk is sized in the subordination levels and in the reserve fund; (3) the fact that pro-rata amortization of the Series B, C and D notes leads to reduced credit enhancement of the senior class in absolute terms. These increased risks were reflected in Moody's credit enhancement calculation; and (4) no limit has been established to the amount of loans for which maturity could be renegotiated, even though the extension of the maturity date could not be extended later than 3 years before the expected maturity on the notes. The portfolio comprises 6,327 loans representing a provisional portfolio of EUR1,019,185,743. The securitized products are first-lien mortgage loans granted to individuals, most of whom will use these loans to acquire or refurbish a primary residence. The loans have a weighted average seasoning of approximately 0.96 years. The original weighted average LTV is 63.20%. The current weighted average LTV is 59.89%. The mortgages consist of first charges on residential properties that are all believed to be owner-occupied. All the properties on which the mortgage securities have been granted are covered by property damage insurance and fire insurance. Moody's based its ratings on: (1) an evaluation of the underlying portfolio of mortgage loans securing the structure, and (2) the transaction's structural protections, which include the subordinate position of all the subordinated notes with respect to Series A, the strength of the cash flows (including the reserve fund) and any excess spread available to cover losses. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, the rating agency will endeavor to assign a definitive rating. A definitive rating (if any) may differ from a provisional rating. AYT GENOVA: Fitch Places BB Ratings on EUR10.7-Mln Class D Notes ---------------------------------------------------------------- Fitch Ratings placed expected ratings to AyT Genova Hipotecario IX, Fondo de Titulizacion Hipotecaria's mortgage-backed floating-rate notes totaling EUR1 billion due in July 2039: -- EUR217.5 million Class A1: AAA; -- EUR750 million Class A2: AAA; -- EUR11 million Class B: AA-; -- EUR10.8 million Class C: BBB+; and -- EUR10.7 million Class D: BB. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a cash flow securitization of a EUR1 billion static pool of first-ranking residential mortgage loans originated by Barclays Bank, S.A., an entity, which is 99.67%- owned by Barclays Bank PLC. This is the ninth residential mortgage securitisation to be conducted by BBSA through the "Genova" program and the seventh to be rated by Fitch. As in previous Genova transactions, BBSA originated the securitized mortgages and will continue to service the portfolio. The expected ratings are based on the quality of the underlying collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structure of the transaction. The expected ratings assigned to each of the notes address the fund's capacity for timely payment of interest on each payment date and for repayment of the principal during the life of the operation and, in all events, prior to the legal maturity date, according to the terms and conditions of the documentation, which envisage interest deferral triggers on the Class B, C and D notes. The fund will be regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to transform into securities the mortgage participations it will acquire from BBSA. The PHs will be subscribed by Ahorro y Titulizacion, S.G.F.T., S.A., whose sole function is to manage asset-backed notes on behalf of the fund. The securitized pool comprises Hipoteca Remunerada loans, an amortizing mortgage product bearing a margin of 0.45% over 12- month Euribor. All loans are paid via direct debit since the Hipoteca Remunerada product is marketed along with an interest- bearing bank account. Since Hipoteca Remunerada is primarily targeted at high-net- worth Spanish clients, the average value of the properties backing the mortgages is over EUR328,000 and many of them fall into the high end of the Spanish property market, where demand may slow in times of economic crisis. Fitch addressed this risk in its recovery rate calculations by increasing the market value decline assumptions for these high- value properties through application of a jumbo stress of between 15% and 25%. RURALPYME FTPYME: Fitch Junks EUR24.05-Mln Series D Notes --------------------------------------------------------- Fitch Ratings assigned Ruralpyme FTPYME 2 FTA, notes totaling EUR617 million due in April 2030 expected ratings: -- EUR487 million Series A1: AAA; -- EUR53.7 million Series A2 (G): AAA; -- EUR29.1 million Series B: A; -- EUR23.2 million Series C: BBB-; and -- EUR24.05 million Series D: CC. The final ratings are contingent on final documents conforming to information already received. The issuer will be legally represented and managed by Europea de Titulizacion SGFT SA, a limited liability and special-purpose management company incorporated under Spanish law. The expected ratings address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B and C notes, as well as the repayment of principal by legal final maturity date. The Class D notes will be issued to finance the creation of the reserve fund at closing. The good performance of the Class D notes depends on very favorable conditions for the collateral backing the Class A to C notes, and therefore its expected rating is supported by the recovery rate that note holders are likely to receive during the life of the transaction. The Kingdom of Spain will guarantee ultimate payment of interest and principal on the Class A2 (G) notes. This transaction involves the securitization of a EUR593 million static pool of secured and unsecured loans granted to small and medium-sized enterprises in Spain by 14 rural credit co- operative banks. To date, cajas rurales have participated in a total of 12th securitization program, including eight residential mortgage- backed securities and four SME collateralized loan obligations. These cajas rurales are members of the Asociacion Espanola de Cajas Rurales, which offers its 74 members a wide range of wholesale and retail banking services through Banco Cooperativo Espanol. Banco Cooperativo's main role is that of central treasurer and financial adviser. SANTANDER CONSUMO: Moody's Junks EUR14.3-Mln Series F Notes ----------------------------------------------------------- Moody's Investors Service assigned the provisional ratings to the debt to be issued by Santander Consumo 2, Fondo de Titulizacion de Activos: -- EUR1,738.5 million Series A notes:(P)Aaa; -- EUR25.7 million Series B notes:(P)Aa2; -- EUR61.7 million Series C notes:(P)A2; -- EUR47.5 million Series D notes:(P)Baa2; -- EUR26.6 million Series E notes:(P)Ba2; and -- EUR14.3 million Series F notes:(P)Caa2. Santander Consumo 2, FTA is the second consumer loan-backed securitisation transaction carried out by Banco Santander Central Hispano, S.A. The securitized pool comprises a mixture of auto loans and consumer loans granted for other purposes. In Moody's view, strong features within this deal include: (1) a swap agreement guaranteeing an excess spread of 2.5% and covering the servicing fee; (2) a 12-month artificial write-off mechanism; (3) a granular securitized pool; and (4) good geographical diversification of the pool. Weaker features include: (1) the fact that no historical information has been provided in a format satisfactory to Moody's; (2) a revolving period of up to three years; (3) the negative impact of the interest deferral trigger on the subordinated series; and (4) the negative carry and the reduction in the excess spread amount if BSCH fails to provide a sufficient amount of loans to be purchased by the fund during the revolving period. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets comprised, as of Oct. 2006, a portfolio of 222,242 loans granted to 207,390 borrowers resident in Spain for the purpose of financing consumer goods (including auto loans) and services. The loans have been originated between 1991 and Aug. 2006, with a weighted average seasoning of 1.55 years and a weighted average remaining life of 5.6 years. The weighted average interest rate is 6.2%, with 36.5% of the loans linked to floating reference rates. All of the loans hold a personal guarantee. Geographically the pool is concentrated in the regions of Madrid (24%), Andalusia (15%) and Catalonia (12%). At closing, there will be no loans more than 30 days in arrears. Moody's based the provisional ratings primarily on: (i) an evaluation of the underlying portfolio of loans; the strict eligibility criteria with which any receivable must comply in order to be included in the securitized pool; (ii) the early amortization triggers put in place to stop the purchase of additional loans; (iii) historical performance information from the Spanish consumer loan market; the swap agreement; (iv) the credit enhancement provided through the GIC account, the excess spread, the reserve fund and the subordination of the notes; and (vii) the legal and structural integrity of the transaction. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only reflect Moody's preliminary credit opinions regarding the transaction. Upon a conclusive review of the final pool of assets and the final documentation, Moody's will endeavour to assign a definitive rating to the notes. A definitive rating, if any, may differ from a provisional rating. The provisional ratings address the expected loss posed to investors by the legal final maturity (April 20, 2035). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par with respect to the Series A, B, C, D and E notes, and for ultimate payment of interest and principal at par with respect to the Series F notes, on or before the final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. SANTANDER CONSUMO: S&P Junks EUR14.3 Million Class F Notes ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR1,914.3 million asset-backed floating- rate notes to be issued by Fondo de Titulizacion de Activos Santander Consumo 2, a special purpose entity. The notes are backed by unsecured performing loans originated by Banco Santander Central Hispano, S.A., which is Spain's largest bank. The issuer will purchase from Santander loan receivables and, in turn, issue six classes of notes. The class F notes will not be backed by the receivables. The proceeds of these notes will be used to fund the initial reserve fund. This is Santander's second consumer loans securitization. The previous transaction, Fondo de Titulizacion de Activos Consumo Santander 1, was also rated by Standard & Poor's and closed in October 2003. Ratings List Fondo de Titulizacion de Activos Santander Consumo 2 EUR1,914.3 Million Asset-Backed Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A AAA 1,738.5 B AA 25.7 C A 61.7 D BBB 47.5 E BB 26.6 F CCC- 14.3 ============= U K R A I N E ============= CENTRALNE ENTERPRISE: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Economic Court of Chernigiv Region commenced bankruptcy supervision procedure on State Experimental Enterprise Centralne (code EDRPOU 00729876). The case is docketed under Case No. 10/153/B. The Temporary Insolvency Manager is: Sergij Ivanov Darvin Str. 19/15 58000 Chernivtsi Region Ukraine The Economic Court of Chernigiv Region is located at: Miru Avenue 20 14000 Chernigiv Region Ukraine The Debtor can be reached at: State Experimental Enterprise Centralne Kashtanova Str. 20 58000 Chernivtsi Region Ukraine GENERALI GARANT: Moody's Lifts Financial Strength Rating to Ba3 --------------------------------------------------------------- Moody's Investors Service upgraded the foreign currency Insurance Financial Strength Rating of Generali Garant Insurance Company from B3 to Ba3 and assigned a positive outlook. Moody's also assigned a first-time domestic currency IFSR of Baa2 and a National Scale Rating of Aaa.ua to Generali Garant, both with a stable outlook. This rating action concludes the review for possible upgrade announced on June 14. Prior to its acquisition by Generali SpA announced in June and completed in October 2006, Generali Garant was known as Garant Auto Insurance Company. Following the completion of the transaction, Generali owns a 51% stake in Generali Garant, with 24.9% held by Tariel Vasadze, the ultimate owner of the Ukrainian Automobile Corp., 9.8% by Yury Lakhno, the CEO of Generali Garant. As a result of this acquisition, Generali will become a major player in the rapidly growing Ukrainian insurance market, given Garant-Auto's #2 position in the non-life market and Garant Life's #3 position in the life market. Commenting on the new ratings, Moody's said that they reflect the majority ownership by Generali SpA, rated Aa3 for insurance financial strength, the strategic importance attached by Generali to this subsidiary, the expectation of extensive integration of Generali Garant into the Generali Group as regards IT systems, intragroup reinsurance and branding, as well as the expected capital increase in the first half of 2007. Timour Boudkeev, Vice President -- Senior Credit Officer and lead analyst for Generali Garant at Moody's, said: "Generali Garant's foreign currency IFSR is constrained by Ukraine's foreign currency bond ceiling, currently Ba3. At the same time, its domestic currency IFSR on a global scale of Baa2 is a true reflection of the importance that the Ukrainian operation is expected to have for the Generali Group going forward. The highest possible national scale rating of Aaa.ua also reflects Generali Garant's pre-eminent credit standing compared to other issuers in Ukraine." Moody's said that these factors could lead to a change in Generali Garant's ratings: -- a substantial change in the stand-alone credit fundamentals of Generali Garant; -- a rating action on its' ultimate parent, Generali SpA; and -- any form of disassociation of Generali Garant from the Generali Group. In addition, Generali Garant's foreign currency IFSR could be affected by any change (upwards or downwards) in Ukraine's foreign currency bond ceiling, currently Ba3 with a positive outlook. The date of the previous rating action was 14 June 2006 when the IFSR of Generali Garant (then known as Garant Auto) was placed on review for possible upgrade. Generali Garant had shareholders' equity of UAH63.571 million under International Financial Reporting Standards as of Dec. 31, 2005. For FY 2005, it reported Gross Premiums Written of UAH236.357 million and a Net Income of UAH6.367 million. Rating actions: Generali Garant Insurance Company -- foreign currency insurance financial strength rating, upgraded from B3 to Ba3 with a positive outlook. Ratings assigned with a stable outlook: -- domestic currency insurance financial strength rating of Baa2; and -- national scale insurance financial strength rating of Aaa.ua. GOLDEN TELECOM: Commences Internet Project in Nizhny Novgorod ------------------------------------------------------------- Golden Telecom, Inc. revealed that Agentstvo Delovoy Svyazi, its subsidiary in Nizhny Novgorod, launched a massive Internet into each Building project. Broadband rollout is a key component of Golden Telecom's strategy. As reported earlier, Golden Telecom plans to rollout a Fiber-to-the-Building based network in Nizhny Novgorod which will cover 250,000 households. The Company expects to provide Triple Play services including High-Speed Internet Access, VoIP, and Digital TV. At the first stage of the project, a pilot zone embracing 1,560 households was commissioned in a residential district of Nizhny Novgorod. In the future, two more pilot zones with 2,297 and 3,488 households will be commissioned. About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including approximately 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. LIANKA LLC: Kyiv Court Names V. Sokotun as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. V. Sokotun as Liquidator/Insolvency Manager for LLC Lianka (code EDRPOU 23309970). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 5. The case is docketed under Case No. 4/12-15/692-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 Lianka Frunze Str. 19/21 Kyiv Region Ukraine RAJAGROHIM OJSC: Vinnitsya Court Starts Bankruptcy Supervision -------------------------------------------------------------- The Economic Court of Vinnitsya Region commenced bankruptcy supervision procedure on OJSC Rajagrohim (code EDRPOU 05487461). The case is docketed under Case No. 5/226-06. The Temporary Insolvency Manager is: Stanislav Markovskij Kirov Str. 116 Illintsi 22700 Vinnitsya Region Ukraine The Economic Court of Vinnitsya Region is located at: Hmelnitske Shose 7 21036 Vinnitsya Region Ukraine The Debtor can be reached at: OJSC Rajagrohim Kirov Str. 116 Illintsi 22700 Vinnitsya Region Ukraine REILROAD TIES: Kyiv Court Starts Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Reinforced Concrete Reilroad Ties Trade House (code EDRPOU 31744978) on Sept. 21. The case is docketed under Case No. 15/533-b. The Temporary Insolvency Manager is Sergij Shkuro. 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 Reinforced Concrete Reilroad Ties Trade House Uritskij Str. 40/60 03035 Kyiv Region Ukraine ROXO LLC: Kyiv Court Names Ludmila Leluh as Insolvency Manager -------------------------------------------------------------- The Economic Court of Kyiv Region appointed Ludmila Leluh as Liquidator/Insolvency Manager for LLC Kyiv Jewelry-Clock Priduction Enterprise Roxo (code EDRPOU 31026825) The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 5. The case is docketed under Case No. 15/269-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 Kyiv Jewelry-Clock Priduction Enterprise Roxo Trudenko Str. 2 03022 Kyiv Region Ukraine STYLE LLC: Court Names Oleg Linkevich as Insolvency Manager ----------------------------------------------------------- The Economic Court of Zhitomir Region appointed Oleg Linkevich as Liquidator/Insolvency Manager for LLC Style (code EDRPOU 22065891). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 5. The case is docketed under Case No. 5/34 B. The Debtor can be reached at: LLC Style Shkilna Str. 74 Teterivka Zhitomir District 12420 Zhitomir Region Ukraine TELEHOUSE KYIV: Court Names O. Agafonov as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. O. Agafonov as Liquidator/Insolvency Manager for LLC Telehouse Kyiv International Communications (code EDRPOU 14345300). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 16. The case is docketed under Case No. 24/685-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 Telehouse Kyiv International Communications Lvivska Str. 18-A 03115 Kyiv Region Ukraine TERNOPILLIFT: Ternopil Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Ternopil Region commenced bankruptcy supervision procedure on Ternopillift (code EDRPOU 21167709). The case is docketed under Case No. 17/B-781. The Temporary Insolvency Manager is Mr. A. Turanov. The Economic Court of Ternopil Region is located at: Ostrozski Str. 14a 46000 Ternopil Region Ukraine The Debtor can be reached at: Ternopillift Lichakivskij Str. 6 Ternopil Region Ukraine UKRDRUK CJSC: Court Appoints V. Sokotun as Insolvency Manager ------------------------------------------------------------- The Economic Court of Rivne Region appointed Mr. V. Sokotun as Liquidator/Insolvency Manager for CJSC UKRDRUK (code EDRPOU 22567210). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 11. The case is docketed under Case No. 9/7. The Economic Court of Rivne Region is located at: Yavornitski Str. 59 33001 Rivne Region Ukraine The Debtor can be reached at: CJSC Ukrdruk Yasna Str. 3 Rivne Region Ukraine VETA LLC: Dnipropetrovsk Court Starts Bankruptcy Supervision ------------------------------------------------------------ The Economic Court of Dnipropetrovsk Region commenced bankruptcy supervision procedure on LLC Veta (code EDRPOU 21938029). The case is docketed under Case No. 40/194-06. The Temporary Insolvency Manager is: Igor Morozov Novomoskovsk 51200 Dnipropetrovsk Region Ukraine The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Veta Novomoskovsk 51200 Dnipropetrovsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== ACORN JOINERY: Nominates Liquidators from Abbott Fielding --------------------------------------------------------- Nedim Ailyan and Andrew Tate of Abbott Fielding were nominated Joint Liquidators of Acorn Joinery (Southern) Limited (formerly East Hants Woodworking Limited) on Nov. 7 for the creditors' voluntary winding-up procedure. Headquartered in Bordon Heath, England, Acorn Joinery (Southern) Limited -- http://www.acornjoinerysouthern.co.uk/-- offers a wide range of carpentry and joinery services from flooring to loft conversions, serving customers throughout the Hampshire area. The company specializes in windows, doors, staircases and renovations. ALAN T. CARR: Appoints Begbies Traynor as Administrators -------------------------------------------------------- David Acland and Steven Williams of Begbies Traynor were appointed joint administrators of Alan T. Carr Ltd. (Company Number 01049963) on Nov. 8. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Allan T. Carr Ltd. can be reached at: Butts St. Leigh Lancashire WN7 3AE United Kingdom Tel: 01942 261996 BERRIES WINE: Names Anthony David Kent Liquidator ------------------------------------------------- Anthony David Kent of Maidment Judd was appointed Liquidator of Berries Wine Bar Limited on Nov. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: Berries Wine Bar Limited Leytonstone House Hanbury Drive Waltham Forest London E11 1GA United Kingdom Tel: 020 7329 4759 Fax: 020 7329 4759 BLCS LIMITED: Taps Baker Tilly as Joint Administrators ------------------------------------------------------ John David Ariel and Karl Christopher Holmes of Baker Tilly were appointed joint administrators of BLCS Ltd. (Company Number 03437311) on Nov. 1. 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. BLCS Ltd. can be reached at: 102 Lower Guildford Road Knaphill Woking Surrey GU21 2EP United Kingdom Tel: 08707879442 Fax: 08707876610 BLOCKBUSTER INC: Fitch Affirms Issuer Default Rating at CCC ----------------------------------------------------------- Fitch Ratings affirmed the ratings for Blockbuster Inc.: -- Issuer default rating CCC; -- Senior secured credit facility CCC/RR4; and -- Senior subordinated notes of CC/RR6. Fitch has also revised Blockbuster's Rating Outlook to Stable from Negative. Approximately US$1.2 billion of debt is affected by the action. The ratings continue to reflect ongoing credit concerns which include weak financial performance driven by pricing pressures which continue to limit margin expansion, difficult industry conditions, and intense competition from mass merchants, pay- per-view suppliers, and online retailers. The Stable Outlook reflects Blockbuster's improved financial flexibility, stronger liquidity position, and the company's cost cutting efforts that have enabled Blockbuster to improve Free Cash Flow despite ongoing revenue declines, and the Company's leading position in the rental entertainment industry. Importantly, Blockbuster's improved financial flexibility includes covenant relief over 2006 and 2007, a stronger liquidity position that has been aided by a US$150 million preferred stock offering and LTM free cash flow of approximately US$165 million. The stable outlook also reflects Fitch's belief that the Company will be able to meet its amended 2006 minimum EBITDA covenant of US$210 million. However, Blockbuster's revenue generation continues to be negatively affected from structural changes in the industry, competitive factors, and the company's strategic decision to eliminate late fees in 2005. Blockbuster's online movie rental business, which is subscription based and was launched in 2004, has not yet grown in size to offset competitive and industry factors. Despite these challenges, Blockbuster's operating margin and operating EBITDA showed some improvement through the first three quarters of 2006 as the company has significantly reduced its advertising budget and overhead spend. For the quarter ending Sept. 30, 2006, Blockbuster's operating margin was 0.1% versus - 25.3% for third quarter-2005. Operating EBITDA of US$64 million in the third quarter of 2006 reflected growth of 14% over US$56 million in 3Q'05. These positive variances reflect cost containment related to corporate overhead, lower store level compensation, and reduced advertising expenses. Fitch notes that the cost cutting strategy has driven better results however ongoing reduction of expenses like advertising may be disadvantageous in the long run as it does not help grow top line revenue. Nevertheless, Fitch expects margin and operating EBITDA improvement to continue in the historically strong fourth quarter Overall, Fitch remains concerned about Blockbuster's operational policies, which have included major changes to its business model in response to weakening market conditions. These changes include replacing lost revenue from the elimination of high margin late rental fees in 2005. Fitch views the elimination of late fees as particularly risky and challenging given that Blockbuster is now required to offset this source of operating profit with substantial increases in rental and merchandise revenues. This may continue to be difficult for Blockbuster due to price discounting employed by the company's online division and strong competition in the home video/DVD market from mass merchants. While Fitch recognizes that Blockbuster's online initiative has grown, Fitch notes that these revenues typically carry a lower gross margin, as do other areas such as video sales and game sales. This is important given Blockbuster's large fixed-cost base due to its real estate leases, especially if the online revenues cannibalize existing rental revenues. Blockbuster generated meaningful discretionary free cash flow over the last twelve months Sept. 30, 2006 due to the aforementioned cost cuts as well as lower capital expenditures offset by moderate working capital usage. As such, Blockbuster's free cash flow to total adjusted debt improved to 2.7% for LTM Sept. 30, 2006 from -3.4% for fiscal year 2005. Blockbuster improved its financial flexibility in the last twelve months by securing US$150 million in private equity funding and using the proceeds to pay off the balance on its revolving credit facility. Importantly, Blockbuster has had no borrowings on its facility for the last two quarters. Leverage as measured by total adjusted debt to operating EBITDAR strengthened from 7.8 times as of fiscal year 2005 to 6.7x as of LTM Sept. 30, 2006. Total debt to operating EBITDA also improved from 7.0x in fiscal year 2005 to 3.9x in LTM Sept. 30, 2006. Blockbuster's liquidity is improved and supported by cash balances of US$255 million at third quarter end and availability of US$293 million on its US$500 million secured revolving credit facility, which matures 2011. The secured credit facility has a covenant package with amendments related to minimum EBITDA levels, restricted payments, and future fixed charge coverage and leverage tests. Blockbuster has been in compliance with its amended covenants. In addition, Fitch notes that Blockbuster must continue to generate strong operating EBITDA in the coming year in order to meet the fixed charge covenant of 1.35x for any four consecutive fiscal quarters ending after Dec. 31, 2007. Fitch expects Blockbuster to continue reducing its fixed cost base and meet this covenant. BROOKLANDS EURO: Fitch Affirmed Ratings for Class E Notes at BB --------------------------------------------------------------- Fitch affirmed ratings of Brooklands Euro Reference Linked Notes 2004-1 Ltd.'s notes, following a satisfactory performance review: -- Class A1-a (ISIN XS0193140901): AAA; -- Class A1-b (ISIN XS0193141388): AAA; -- Class A2 (ISIN XS0193141891): AAA; -- Class B (ISIN XS0193142436): AA; -- Class C-E (ISIN XS0193142782): A; -- Class C-Y (ISIN XS0193142865): A; -- Class D (ISIN XS0193143590): BBB; and -- Class E (ISIN XS0193143913): BB. The transaction has performed within expectations. There have been no credit events to date. The Weighted Average Fitch Factor has increased to 4.0 from 3.4 last year in March 2005. The credit quality of the reference portfolio has slightly deteriorated with the exposure to speculative- grade reference entities increasing to 10.75% of the portfolio from 3.6% as of January 2005's trustee report. This deterioration has been mitigated by the stable credit enhancement and increased seasoning of the transaction. The transaction represents a synthetic securitization of asset- backed securities and corporate debt. Brooklands has entered into a credit swap with UBS AG, London Branch and issued the notes listed above. These are collateralized by AAA-rated securities, which have been purchased pursuant to a repurchase agreement with UBS. Under the credit swap, Brooklands agrees to make payments to UBS of up to a maximum of EUR187.5 million plus the interest on the unrated Class F notes for losses on a substitutable portfolio of publicly and privately rated ABS reference securities and corporate reference entities with a notional amount of EUR750 million. The rating on the JPY Class C-Y notes is credit-linked to UBS, due to the notes being dependent on UBS taking on the foreign exchange risk inherent in the JPY notes. The ratings of the Class A to E notes address the full and timely payment of interest and ultimate payment of principal by the final maturity. Up to the payment date in June 2014 obligors may be substituted from the reference pool and replaced with other reference entities or ABS reference securities, subject to certain reference pool guidelines. These reference guidelines include a Vector test incorporating the Fitch Default Vector Model. BULL SEARCH: Brings In Liquidators from Mercer & Hole ----------------------------------------------------- John Anthony Dickinson and Steven Leslie Smith of Mercer & Hole were appointed Joint Liquidators of Bull Search Limited (formerly Charco 1009 Limited) on Oct. 31 for the creditors' voluntary winding-up procedure. Headquartered in Slough, England, Bull Search Limited -- http://www.bullsearch.co.uk/-- delivers recruitment and business consultancy services. The company specializes in the recruitment of board directors, senior management and executives. It operates across all business disciplines in a variety of industry sectors, including management consultancy, pharmaceutical, healthcare, telecommunications, information technology, leisure & entertainment, travel, banking and financial services, FMCG, engineering, energy, oil and gas, retail and manufacturing. CLEAR CHANNEL: Inks US26.7-Bln Merger Deal with Private Equity -------------------------------------------------------------- Clear Channel Communications Inc. executed a definitive merger agreement with a group led by Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC, pursuant to which the group will acquire Clear Channel in a transaction with a total value of approximately US$26.7 billion, including the assumption or repayment of approximately US$8 billion of net debt. Under the terms of the agreement, Clear Channel shareholders will receive US$37.60 in cash for each share of Clear Channel common stock they hold, representing a premium of approximately 25% over Clear Channel's average closing share price of US$29.99 during the 30 trading days ended Oct. 24, 2006, the day before the Company first acknowledged that it was evaluating strategic alternatives. Morgan Stanley, Citigroup, and Deutsche Bank as well as Credit Suisse, RBS and Wachovia are acting as financial advisors and providing firm financing commitments to the private equity group. Morgan Stanley, Citigroup, Deutsche Bank, Credit Suisse and RBS are also providing equity commitments. The board of directors of Clear Channel, with the interested directors recused from the vote, has unanimously approved the merger agreement and has resolved to recommend that Clear Channel's shareholders adopt the agreement. A special advisory committee consisting of disinterested directors unanimously determined the terms of the transaction to be fair. Mark P. Mays, the Chief Executive Officer of Clear Channel, said, "We are very pleased to announce this transaction which provides substantial value to our shareholders. We look forward to working with Thomas H. Lee Partners and Bain Capital Partners to continue our business plan to provide exceptional programming to our audiences and value to our advertising partners." Scott Sperling, Co-President of Thomas H. Lee Partners, stated, "Clear Channel is one of the nation's truly great companies that has the finest collection of outdoor and radio assets in the industry. We are extremely pleased to be partnered with the management team led by Mark and Randall Mays and to have the opportunity to work with them and to grow this company that was created by its Chairman and founder, L. Lowry Mays. Clear Channel has tremendous long term growth opportunities in both the radio and outdoor businesses and we look forward to partnering with Mark and Randall to create value in the years ahead." John Connaughton, a Managing Director at Bain Capital, said, "We are very impressed with Clear Channel's strong management team and the company's leadership positions in a variety of markets and media formats. Clear Channel is an exceptional media franchise that is well-positioned to grow thanks to the solid foundation the Mays family has created. We look forward to partnering with Clear Channel as it continues to innovate in meeting the changing needs of the audiences and advertisers it serves." The merger does not require the consent of unsecured note holders and is not conditioned upon a merger, consolidation or going private transaction involving Clear Channel Outdoor Holdings, Inc. The merger is subject to the approval of Clear Channel's shareholders, requisite regulatory approvals and customary closing conditions. Under the merger agreement, Clear Channel may solicit competing bids from third parties through Dec. 7, 2006, and may negotiate with parties that submit competing proposals by that time until Jan. 5, 2007. Clear Channel may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals. If Clear Channel accepts a superior proposal, a break up fee would be payable by the Company. There can be no assurance that the solicitation of proposals will result in any alternative transaction. At the request of the disinterested directors, three members of senior management have agreed to significantly reduce payments that could be payable upon a change of control by an amendment to their employment agreements. Clear Channel also disclosed that it intends to solicit buyers for 448 radio stations in selected small markets as well as for its television broadcasting division. The merger is not conditioned on the consummation of any of these sale transactions. Goldman, Sachs & Co. is acting as exclusive financial advisor to Clear Channel and Lazard Freres & Co. LLC is acting as financial advisor to the special advisory committee. Goldman, Sachs & Co. and Lazard Freres & Co. LLC have each delivered a fairness opinion to the Board and special advisory committee, respectively. Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor for Clear Channel and Sidley Austin LLP is acting as legal advisor for the special advisory committee. Ropes & Gray LLP and Dow Lohnes PLLC are serving as legal advisors to the private equity group. About Bain Capital Partners, LLC Headquartered in Boston, Massachusetts, Bain Capital -- http://www.baincapital.com/-- is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with more than US$40 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 230 companies around the world, including investments in a broad range of companies such as Burger King, Warner Chilcott, Toys "R" Us, AMC Entertainment, Sensata Technologies, Burlington Coat Factory and ProSiebenSat1 Media. It has offices in New York, London, Munich, Tokyo, Hong Kong and Shanghai. About Thomas H. Lee Partners, LP Thomas H. Lee Partners, L.P. is one of the oldest and most successful private equity investment firms in the United States. Since its founding in 1974, THL Partners has become the preeminent growth buyout firm, investing approximately US$12 billion of equity capital in more than 100 businesses with an aggregate purchase price of more than US$100 billion, completing over 200 add-on acquisitions for portfolio companies, and generating superior returns for its investors and partners. The firm currently manages approximately US$20 billion of committed capital. Notable transactions sponsored by the firm include Dunkin Brands, VNU, Michael Foods, Houghton Mifflin Company, Fisher Scientific, Experian, TransWestern, Snapple Beverage and ProSiebenSat1 Media. About Clear Channel Communications Headquartered in San Antonio, Texas, Clear Channel Communications, Inc. (NYSE:CCU) -- http://www.clearchannel.com/ -- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. In Europe, it maintains operations in France and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Moody's Investors Service placed the (P)Ba2 Multiple Seniority Shelf Rating for Clear Channel Communications Inc. on review for possible downgrade. CLEAR CHANNEL: Acquisition Deal Spurs S&P to Cut Ratings to BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'BB+' from 'BBB-'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. The downgrade and continuing CreditWatch status followed its announcement of a definitive agreement to be acquired in an LBO by a group of investors led by Bain Capital Partners LLC and Thomas H. Lee Partners L.P. for US$36.70 a share, or approximately US$18.7 billion. The total value of the transaction is approximately US$26.7 billion, including the assumption of the company's outstanding US$8 billion of net debt. The merger is subject to the agreement of Clear Channel's shareholders and regulatory approval. "Although the company has not announced specific financing terms of the new capital structure, we would expect a marked increase in leverage, which is likely to result in even further ratings downside potential," said Standard & Poor's credit analyst Michael Altberg. "Even if the deal does not close, which we believe is a relative low probability at this juncture, Clear Channel has demonstrated an appetite for a higher level of risk." Accordingly, the financial policy expectations of Standard & Poor's have changed, warranting a lower corporate credit rating. The acquisition announcement comes on the heels of a number of shareholder-favoring initiatives undertaken by Clear Channel. Standard & Poor's will review its ratings on Clear Channel when the new capital structure is announced and the rating agency can gain greater clarity on the amount of equity that investors would contribute in financing the proposed acquisition. COLLINS & AIKMAN: Wants Wachovia to Surrender Property ------------------------------------------------------ Collins & Aikman Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to direct Wachovia Bank and Trust Company, N.A., to turnover property that is currently being held in trust by the Bank. In December 1986, the Debtors established a trust to pay supplemental retirement benefits to Donald F. McCullough, the former chief executive officer of Collins & Aikman Corp. Wachovia serves as Trustee of the C&A Rabbi Trust. Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, tells the Court that pursuant to a trust agreement, the Trust Assets are the Debtors' property and should be available for distribution to their creditors. Wachovia has informed the Debtors that it will transfer the Trust Assets to the Debtors pursuant only to a judgment by a "court of competent jurisdiction." Mr. Cieri also relates that Wachovia has breached the Trust Agreement by failing to discontinue payments to the beneficiary of the C&A Rabbi Trust after being informed of the Debtors' insolvency. Contrary to its obligations under the Trust Agreement, Wachovia did not independently determine whether the Debtors were in fact insolvent within 30 days of receiving notice of insolvency. Wachovia also did not discontinue the payment of benefits under the Trust. Instead, between June 2005 and October 2005, Wachovia continued to use or invade the Trust Assets to pay monthly benefits to Louise V. McCullough, the surviving spouse of Mr. McCullough and the sole remaining beneficiary of the Trust, aggregating $35,215. The Debtors also seek to recover the monetary damages that they have suffered as a result of Wachovia's breach of the Trust Agreement. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COTT CORPORATION: Earns US$6.6 Million in 2006 Third Quarter ------------------------------------------------------------ Cott Corp. reported a US$6.6 million net income on US$475.5 million of revenues for the third quarter ended Sept. 30, 2006, compared with a US$1.8 million net loss on US$469.9 million of revenues for the same period in 2005. Despite registering a lower gross profit of US$62.0 million in the third quarter of 2006, compared to a gross profit of US$65.4 million for the same period of 2005, the company managed to show a profit of US$6.6 million largely due to lower recorded charges for unusual items of US$9.3 million on a pre-tax basis in the current quarter compared with a charge for unusual items of US$25.7 million on a pre-tax basis in the same quarter in 2005. This would account for the reported net income of US$6.6 million in the third quarter of 2006 compared to the US$1.8 million net loss for the same period in 2005. The US$9.3 million of unusual items recorded in the third quarter of 2006 consists of US$9.4 million of restructuring charges, partially offset by a US$0.1 million gain related to a recovery from a note receivable. At Sept. 30, 2006, the company's consolidated balance sheet showed US$1.2 billion in total assets, US$653.5 million in total liabilities, US$21.9 million in minority interest, and US$513 million in stockholders' equity, The company also disclosed that to assure long-term success and profitability, it is focusing on reducing costs, becoming the best partner to their retailer customers, and building and sustaining a pipeline of innovation and new product development. The company also reported that it will cease production at their manufacturing plants in Elizabethtown, Kentucky and Wyomissing, Pennsylvania by Dec. 31, 2006; and will reallocate production volume to other manufacturing sites in North America. Full-text copies of the company's consolidated financial statements for the third quarter ended Sept. 30, 2006, are available for free at http://researcharchives.com/t/s?1538 Headquartered in Toronto, Ontario, Canada, Cott Corporation (NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non- alcoholic beverage company and a retailer brand beverage supplier. The Company commercializes its business in over 60 countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over 200 retailer and licensed brands, and Company- owned brands including Cott, Royal Crown, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavored mineral waters, energy drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non-carbonated beverages. * * * As reported in the Troubled Company Reporter on Sept. 26, 2006, Moody's Investors Service's affirmed its Ba3 Corporate Family Rating for Cott Corporation and its B1 Rating on Cott Beverages Inc.'s 8% Subordinate Notes Due 2011, in connection with Moody's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. beverage company sector. Moody's assigned an LGD5 rating to those bonds, suggesting noteholders will experience a 74% loss in the event of a default. CRYSTAL BUILD: Nominates Liquidators from Abbott Fielding --------------------------------------------------------- Nedim Ailyan and Hasan Mirza of Abbott Fielding were nominated Joint Liquidators of Crystal Build & Design Limited on Oct. 26 for the creditors' voluntary winding-up procedure. The company can be reached at: Crystal Build & Design Limited Unit 17 Brookside Industrial Estate Wednesbury West Midlands WS100QZ United Kingdom Tel: 0121 505 5579 DELL INC: Looks to Release Third Quarter Results by Month's End --------------------------------------------------------------- Dell Inc. intends to report its preliminary results for the fiscal third quarter by the end of this month. The move from the originally scheduled date of November 16 reflects the level of complexity the company is facing in the preparation of its preliminary results. The complexity arises out of the ongoing investigations by the U.S. Securities and Exchange Commission and the company's Audit Committee into certain accounting and financial reporting matters, and the fact the company has not filed its Form 10-Q for the second fiscal quarter. When the company does announce earnings it will be in the form of a press release only. In addition, the company said that future earnings announcements will be moved back by approximately one week versus Dell's prior schedule. The company also announced it has been informed that the SEC has entered a formal order of investigation. The delay in announcing earnings is not related to that development. Dell continues to cooperate with the SEC, and is committed to resolving all issues in connection with the investigation and regaining compliance with all SEC filing requirements as soon as possible. Headquartered in Round Rock, Texas, Dell Inc. (NASDAQ: DELL) -- http://www.dell.com/-- designs, develops, manufactures, markets, sells, and provides support for various computer systems and services to customers worldwide. Dell has regional headquarters in Bracknell, England, for Europe, Middle East and Africa and in Singapore to serve the Pacific Rim, including Japan, India, China, Australia and New Zealand. The company manufactures its computer systems in seven locations: Austin, Texas; Nashville, Tenn.; Winston-Salem, North Carolina; Eldorado do Sul, Brazil (Americas); Limerick, Ireland (Europe, Middle East and Africa); Penang, Malaysia (Asia Pacific and Japan) and Xiamen, China (China). Dell sells its products and services worldwide. DURA AUTOMOTIVE: Gets Interim Nod to Pay Foreign Vendor Claims -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted, on an interim basis, DURA Automotive Systems, Inc.'s request to pay claims, prior to the filing for chapter 11 protection, owing to vendors, service providers, regulatory agencies, and governments located in foreign jurisdictions, including claims for payment for direct and indirect materials and services provided to the Debtors, as well as import or tax obligations. The Debtors estimate they owe approximately $3,400,000 to Foreign Vendors as of the Petition Date. Of that amount, the Foreign Claims of the foreign joint venture aggregate approximately $100,000. The Debtors also request that they be authorized to permit all checks issued by them to the Foreign Vendors, prior to the filing for chapter 11 protection, to clear the Debtors' bank accounts. The Debtors further request that the banks honor, unless otherwise directed, any and all checks drawn by the Debtors prior to the Petition Date to pay any of the obligations, prior to the filing for chapter 11 protection, owing to the Foreign Entities that have not cleared the banking system prior to the Petition Date and any and all checks drawn by the Debtors after the Petition Date to pay any claims, prior to the filing for chapter 11 protection, of the Foreign Vendors. Keith R. Marchiando, chief financial officer and vice president, emphasizes the satisfaction of the Foreign Claims will not be deemed to be an assumption or adoption of any agreements that relate to those operations. Mr. Marchiando tells the Court that the Debtors are making every effort to avoid interruptions in the supply chain and the adverse effects that even a temporary break in the supply chain could have on their businesses. Many of the Foreign Vendors supply goods or services to the Debtors that are crucial to the Debtors' ongoing U.S. and Canadian operations. Moreover, Mr. Marchiando says, some of these Foreign Vendors supply goods or services to the Debtors that cannot be obtained from other sources in sufficient quantity or quality or without significant delays. The Debtors regularly transact business with Foreign Vendors of this type in Brazil, China, Czech Republic, France, Germany, India, Japan, Korea, Mexico, Romania, Slovakia, Spain, the United Kingdom, and elsewhere in Europe and Asia. "[I]f these goods are not obtained from Foreign Vendors without interruption, the Debtors likely would not be able to fulfill their obligations to their customers." Mr. Marchiando notes Foreign Vendors might be confused or have guarded reactions to the U.S. bankruptcy process. "[T]here is a significant risk that the nonpayment of even a single invoice could cause a foreign vendor to stop shipping goods to the Debtors on a timely basis and completely sever its business relationship with the Debtors. But even short of that, nonpayment of prepetition claims may cause Foreign Vendors to utilize extreme caution and adopt a wait-and-see attitude in approaching the unfamiliar territory of Chapter 11, resulting in costly delays in the shipment of additional goods. The Debtors can ill afford delays of this nature." "If the Foreign Claims are not paid, the Foreign Vendors may take precipitous action against the Debtors based upon an erroneous belief that they are not subject to the jurisdiction of the Court and, thus, not subject to the automatic stay provisions of Section 362(a) of the Bankruptcy Code," Mr. Marchiando notes. The Debtors have a number of non-debtor affiliates located in more than 15 foreign countries, and thus, the Foreign Vendors may also take action against those non-debtor affiliates, or against any property owned by the Debtors themselves located in foreign territory. If Foreign Vendors fail to ship goods or refuse to do business with the Debtors because of a failure to pay the Foreign Claims, or if foreign governmental entities seize goods from sole-source suppliers because of a failure to pay the Foreign Claims, the Debtors' manufacturing facilities utilizing those parts would likely be forced to shut down less than 24 hours after the missed shipment, Mr. Marchiando says. Shortly after a shutdown of one of the Debtors' facilities, the Debtors' OEM Customers would likely be forced to halt production of their products on one or more of their assembly lines. Shutting down one assembly line could cause an affected OEM Customer to assert damages against the Debtors exceeding $10,000,000 per day. Thus, the Debtors to continue the payment of Foreign Claims on the agreement of the individual foreign vendor to continue supplying goods and services to the Debtors on terms that are consistent with the historical trade terms between the parties. The Debtors propose that the Customary Trade Terms apply for the remaining term of the Foreign Vendor's agreement with the Debtors, as long as the Debtors agree to pay for those goods in accordance with those terms. The Debtors reserve the right to negotiate trade terms with any vendor, as a condition to payment of any Foreign Claim, that vary from the Customary Trade Terms to the extent the Debtors determine that those terms are necessary to procure essential goods or services or are otherwise in their best interests. If a Foreign Vendor accepts a payment on account of an obligation of the Debtors, prior to the filing for chapter 11 protection and thereafter, fails to provide the Debtors with the requisite Customary Trade Terms, then: (a) any Foreign Payment received by the Foreign Vendor will be deemed an unauthorized postpetition transfer under Section 549 of the Bankruptcy Code that the Debtors may either: (i) recover from the Foreign Vendor in cash or goods, or (ii) at the Debtors' option, apply against any outstanding administrative claim held by that Foreign Vendor; and (b) upon recovery of any Foreign Payment, the corresponding prepetition claim of the Foreign Vendor will be reinstated in the amount recovered by the Debtors, less the Debtors' reasonable costs to recover those amounts. The Debtors also seek authorization, but not direction, to obtain written verification before issuing payment to a Foreign Vendor that that Foreign Vendor will continue to provide goods and services to the Debtors on Customary Trade Terms for the remaining term of the Foreign Vendor's agreement with the Debtors; provided, however, that the absence of such written verification will not limit their rights. Finally, to facilitate the payment of Foreign Vendors and, thus, the avoidance of foreign actions against the Debtors and their assets, the Debtors request that the banks be authorized and required to (a) honor any checks drawn against their accounts, but not cleared prior to the Petition Date, and (b) complete an fund transfer requests made but not completed prior to the Petition Date. In addition, the Debtors seek the Court's permission to issue postpetition checks and to make postpetition fund transfer requests to replace any prepetition checks and transfers, prior to the filing for chapter 11 protection, to Foreign Creditors that may be dishonored by the banks. The Court will convene a hearing on November 20, 2006, at 1:00 p.m. Eastern Time to consider final approval. Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ENRON CORP: Reaches US$144,000,000 Settlement With Barclays PLC --------------------------------------------------------------- Enron Corp. and its debtor-affiliates recently reached an agreement with Barclays PLC to settle Barclays' portion in the MegaClaim Litigation. According to the terms of the agreement, Barclays will pay the Debtors US$144,000,000 in cash and the Debtors, in turn, will allow Barclays claims filed in the bankruptcy case totaling US$310,000,000. Barclays did not admit to any wrongdoing or liability in the settlement. John J. Ray III, Enron's Board Chairman, said, "The Barclays agreement is the ninth settlement reached with the financial institutions. Today's announcement reflects our determination to resolve the litigation and continue to deliver value to creditors as quickly as possible, and reflects the lesser role played by Barclays relative to others involved in the litigation." The settlement remains subject to the execution of definitive agreements and the approval of the United States Bankruptcy Court for the Southern District of New York. Financial institutions yet to settle with the Debtors include Citigroup Inc. and Deutsche Bank AG. According to Reuters, Barclays said that its 2006 earnings would not be impacted by the US$144,000,000 because an adequate provision had already been made for the likely cost in prior periods. The Debtors are represented in this matter by Susman Godfrey LLP, Togut, Segal & Segal, and Venable LLP. Barclays PLC is a global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services. 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, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. (Enron Bankruptcy News, Issue No. 182; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ERNEST S. TILL: Names Paul Michael McConnell as Administrator ------------------------------------------------------------- Paul Michael McConnell of Monahans was named administrator of Ernest S. Till & Co. Ltd. (Company Number 00500168) on Nov. 6. The administrator can be reached at: Paul Michael McConnell Monahans 38-42 Newport Street Swindon Wiltshire SN1 3DR United Kingdom Tel: 01793 521231 Fax: 01793 512188 E-mail: paulm@monahans.co.uk Ernest S. Till & Co. Ltd. can be reached at: 2 Gloucester Road North Bristol Avon BS7 0SF United Kingdom Tel: 0117 914 5400 Fax: 0117 914 5404 EUROPEAN SECURITY: J. N. Bleazard Leads Liquidation Procedure ------------------------------------------------------------- J. N. Bleazard of XL Business Solutions Ltd. was appointed Liquidator of European Security Events Limited on Nov. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: European Security Events Limited 30 Wood Street Huddersfield West Yorkshire HD1 1DU United Kingdom Tel: 01484 515 150 Fax: 01484 515 150 FLOWER TRENDS: Joint Liquidators Take Over Operations ----------------------------------------------------- John Kelmanson and Elias Paourou of The Kelmanson Partnership were appointed Joint Liquidators of Flower Trends Limited on Nov. 8 for the creditors' voluntary winding-up proceeding. Flower Trends Limited Unit J Rose Indstrial Estate Marlow Buckinghamshire SL7 3HD United Kingdom Tel: 078 0171 9383 FORMULA FABRICATIONS: Taps Chris Williams to Liquidate Assets ------------------------------------------------------------- Chris Williams of McTear Williams & Wood was appointed Liquidator of Formula Fabrications (U.K.) Limited on Nov. 7 for the creditors' voluntary winding-up proceeding. Headquartered in Wymondham, England, Formula Fabrications (U.K.) Limited -- http://formulafabricationsltd.com/-- is a family run company established in 1972 providing CNC metal processing, sheet metal fabrications, press brake work and one off and batch work. It has a wide and varied customer base that includes: motor manufacturers, heating suppliers, conveying system installers, electronic engineers, agricultural engineers, control component engineers, technical training manufacturers architectural services and vending machines. GOODYEAR TIRE: Meets with Union to Discuss New Labor Deal --------------------------------------------------------- The Goodyear Tire & Rubber Company disclosed Friday that bargaining teams from the company and the United Steelworkers met last week in Cincinnati. Goodyear presented copies of its latest proposals to the union's full bargaining committee. Goodyear reviewed its proposals in detail and responded to questions from the union's bargaining team. The union made no new proposals. The company said it is clear from the discussions that the two primary issues continue to be retiree health care and the announced closure of the Tyler, Texas plant. Dates for further meetings with the union have not been established. Goodyear's latest proposal can be viewed at: http://researcharchives.com/t/s?155c The United Steelworkers struck Goodyear on Oct. 5 after refusing to further extend a three-year master contract with the company. 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. 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-Europe on Oct. 27, Moody's Investors Service confirmed its B1 Corporate Family Rating for The Goodyear Tire & Rubber Company in connection with the rating agency's implementation of its new Probability-of- Default and Loss-Given-Default rating methodology for the U.S. Automotive and Equipment sectors. As reported in the TCR-Europe on Oct. 26, 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. GOODYEAR TIRE: Fitch Junks US$1-Billion Senior Unsecured Notes -------------------------------------------------------------- Fitch Ratings assigned debt and Recovery Ratings of CCC+/RR6 to US$1 billion of new private placement notes issued by The Goodyear Tire and Rubber Company. All ratings remain on Rating Watch Negative. The new debt includes US$500 million of three-year floating rate notes and US$500 million of five-year 8.625% notes. Proceeds will be used to refinance US$515 million of debt scheduled to mature by March 2007 and for general corporate purposes, including addressing the ongoing strike by the United Steelworkers union. Goodyear's existing debt and recovery ratings are: -- Issuer Default Rating 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; and -- Senior unsecured debt CCC+/RR6. Goodyear Dunlop Tires Europe B.V. (GDTE) -- EUR505 million European secured credit facilities BB/RR1. Fitch placed Goodyear's ratings on Rating Watch Negative on Oct. 18 following the company's US$975 million drawdown of its US$1.5 billion revolver, effectively using the remaining capacity under the revolver. The net addition of nearly US$500 million of debt, excluding debt to be refinanced, further supports GT's liquidity during the strike, which began Oct. 5. The Rating Watch Negative reflects business risks posed by the strike as well as concerns about GT's evolving financial position and liquidity as the strike continues. Demands on GT's cash include pension contributions, debt service requirements, potential cash requirements related to the resolution of the strike, uncertain access to any additional financing, and continued operating challenges with respect to the company's cost structure and raw material costs. The eventual outcome of the strike will be an important factor in resolving the rating watch. GREAT HALL: Fitch Places BB Rating on GBP5.4-Mln Class E Notes -------------------------------------------------------------- Fitch Ratings assigned expected ratings to Great Hall Mortgages No. 1 Plc Series 2006-1's multi-currency mortgage-backed floating-rate notes due 2038: -- GBP384.975 million Class A1 and A2: AAA; -- GBP29.925 million Class B: AA; -- GBP16.425 million Class C: A; -- GBP13.275 million Class D: BBB; and -- GBP5.4 million Class E: BB. The final ratings are contingent on the receipt of final documents conforming to information already received. The ratings are based on the collateral quality, available credit enhancement, and the underwriting of Platform Funding Limited. They also consider the servicing capabilities of Western Mortgage Services Limited as instructed by JP Morgan Chase Bank, and the sound legal structure of the transaction. Credit enhancement for the Class A notes totaling 15.6% is provided by the subordination of the Class B notes, the Class C notes, the Class D and the Class E notes as well as an initial reserve fund. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall, and that it can retire the principal by legal final maturity. GRESHAM CAPITAL: S&P Assigns B Rating on EUR12-Mln Class F Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR545.2 million (equivalent) secured floating-rate notes to be issued by Gresham Capital CLO III B.V. In addition, Gresham III will issue a class of EUR54.8 million unrated subordinated notes. 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. At closing, Gresham III will issue floating-rate notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominantly senior-secured leveraged loans. The transaction has a five-year reinvestment period and the collateral manager will be Investec Bank (U.K.) Ltd. Gresham III is Investec's third leveraged loan CDO. The transaction is managed by the London-based Investec Principal Finance team, working in cooperation with Investec Acquisition Finance, the group's London-based leveraged finance team. This transaction features multicurrency revolving liabilities intended to match multicurrency revolving loans purchased by the issuer. Ratings List Gresham Capital CLO III B.V. EUR600 Million (Equivalent) Secured Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ------ ------ ------ A-1E AAA 114.2 A-1S (1) AAA 60 A-1R (2) AAA 150 A-2 AAA 60 B AA 51 C A 34 D BBB 31 E BB 33 F B 12 Subordinated notes NR 54.8 (1) The class A-1S notes will be denominated and issued in pounds sterling. The euro equivalent at closing is expected to be EUR60 million. (2) The class A-1R notes are revolving obligations and can be repaid and redrawn at any time during the reinvestment period. The class A-1R notes may be drawn in various permitted currencies. Advances in given currencies will be indexed to the interest rate index for the relevant currency. NR-Not rated. ICE ALLIANCE: Creditors Confirm Liquidator's Appointment -------------------------------------------------------- Creditors of Ice Alliance Limited confirmed Nov. 9 the appointment of Adrian Graham of Hamiltons Insolvency Practitioners Limited as the company's Liquidator. The company can be reached at: Ice Alliance Limited Friar Gate Court Friar Gate Derby Derbyshire DE1 1HE United Kingdom Tel: 01332 291 753 INCO LTD: Common Stock Ceases Trading on NYSE --------------------------------------------- Inco Limited disclosed that its common shares had its final day of trading on the New York Stock Exchange on Nov. 16. The Inco common shares will continue to trade on the Toronto Stock Exchange, in both Canadian dollars and U.S. dollars, until Jan. 3, 2007, the date on which Inco has scheduled a special meeting of its shareholders to consider an amalgamation transaction which would enable Companhia Vale do Rio Doce to acquire all of the Inco common shares that it does not already own. CVRD acquired approximately 86.57% of the issued and outstanding common shares of Inco pursuant to its recently completed take- over bid. Inco's Board of Directors and management are working with CVRD to ensure a smooth integration of the two companies, with a view to creating a new global leader in the metals and mining industry. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. JANUS SECURITY: Creditors Confirm Voluntary Liquidation ------------------------------------------------------- Creditors of Janus Security Limited confirmed Nov. 8 the resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as Liquidators. The company can be reached at: Janus Security Limited Unit 50 The Acorn Centre Barry Street Oldham Lancashire OL1 3NE United Kingdom Tel: 0161 627 5746 KOHLICO TRADING: Appoints Administrators from Vantis Plc -------------------------------------------------------- Nick O'Reilly and Geoff Rowley of Vantis Plc were appointed joint administrators of Kohlico Trading Ltd. (Company Number 02522103) on Nov. 7. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Kohlico Trading Ltd. can be reached at: The Woodlands Stanmore Hill Stanmore Middlesex HA7 3DU United Kingdom Tel: 020 8954 4876 Fax: 020 8954 7339 LISTAWOOD PROMOTIONAL: Brings In Administrators from Menzies ------------------------------------------------------------ Jason James Godefroy and Paul John Clark of Menzies Corporate Restructuring were appointed Nov. 7 joint administrators of: -- Listawood Promotional Products Ltd. (Company Number 04681728), -- Listawood Holdings Ltd. (Company Number 04682087), and -- Listawood Trade Supplies Ltd. (Company Number 03806359). 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. Headquartered in Fakenham, England, Listawood Promotional Products Ltd., Listawood Holdings Ltd., and Listawood Trade Supplies Ltd. are engaged in printing of promotional products. MAINSTONE BUILDING: Claims Filing Period Ends Dec. 15 ----------------------------------------------------- Creditors of Mainstone Building Services Ltd. have until Dec. 15 to send in their names and addresses with particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Joint Liquidator John William Lewis at: J W Lewis Insolvency Services Ltd. Suite B1 White House Business Centre Forest Road Kingswood Bristol BS15 8NH United Kingdom The company can be reached at: Mainstone Building Services Ltd. 7 Stanshawe Crescent Yate Bristol Avon BS374EB United Kingdom Tel: 01454 883 200 MASTER ROOM: Liquidators Set Dec. 3 Claims Bar Date --------------------------------------------------- Creditors of The Master Room Co. Limited have until Dec. 3 to send their names and addresses and particulars of their debts or claims and the names and addresses of their Solicitors (if any), to appointed Joint Liquidators Ian Michael Rose and Robert Michael Young at: Begbies Traynor The Old Barn Caverswall Park Caverswall Lane Stoke on Trent ST3 6HP United Kingdom The company can be reached at: The Master Room Co. Limited 66 Paddenswick Road Hammersmith And Fulham London W6 0UB United Kingdom Tel: 020 8743 8585 Fax: 020 8743 6633 PIARCO STRUCTURES: Brings In P&A to Administer Assets ----------------------------------------------------- Christopher Michael White and Andrew Philip Wood of The P&A Partnership were appointed joint administrators of Piarco Structures Ltd. (Company Number 05163370) on Nov. 2. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors Headquartered in Rochdale, England, Piarco Structures Ltd. designs timber framed houses. PLUMBING & MECHANICAL: Taps Michael Chamberlain as Administrator ---------------------------------------------------------------- Michael Chamberlain of Chamberlain & Co. was appointed administrator of Plumbing & Mechanical Services Ltd. (Company Number 04788460) on Nov. 1. The administrator can be reached at: Michael Chamberlain Chamberlain & Co. Aireside House 24/26 Aire Street Leeds West Yorkshire LS1 4HT United Kingdom Tel: 0113 242 0808 Fax: 0113 242 0866 E-mail: mail@chamberlain-co.co.uk Plumbing & Mechanical Services Ltd. can be reached at: 9 Headlands Road Aldbrough Hull North Humberside HU11 4RR United Kingdom Tel: 01964 529214 POLARIS FITNESS: Creditors Confirm Liquidators' Appointment ----------------------------------------------------------- Creditors of Polaris Fitness Limited confirmed Nov. 8 the resolutions for voluntary liquidation and the appointment of John Russell and Andrew Philip Wood of The P&A Partnership as Liquidators. Headquartered in Derby, England, Polaris Fitness Limited -- http://www.polaris-fitness.co.uk/-- supplies fitness equipment to gyms and the leisure industry including cardiovascular and strength equipment as well as innovative new products such as whole body vibration training machines. The company also provides expert advice and consultation services to those who are interested in starting their own fitness clubs. PREMIER MAINTENANCE: Hires Liquidators from Recovery hjs -------------------------------------------------------- Gordon Johnston and Shane Biddlecombe of Recovery hjs were appointed Liquidators of Premier Maintenance & Installation Services Limited (formerly Sundene Limited) on Nov. 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: Premier Maintenance & Installation Services Limited Unit 3 Alpine Business Centre Eastbury Road London E6 6LP United Kingdom Tel: 020 7476 5542 PROPERTY CARE: Appoints David Field to Liquidate Assets ------------------------------------------------------- David Field of Centrum Recovery was appointed Liquidator of Property Care Kitchens & Bedrooms Limited on Nov. 6 for the creditors' voluntary winding-up proceeding. Headquartered in Redruth, England, Property Care Kitchens & Bedrooms Limited -- http://www.propertycareltd.com/-- supplies and fits bedrooms, kitchens, and bathrooms. The company's complete service includes the planning, design, and installation of bedrooms, kitchens, and bathrooms. REJUVE LIMITED: Hires Administrator from Valentine & Co ------------------------------------------------------- Mark Simon Reynolds of Valentine & Co. was appointed administrator of Rejuve Ltd. (Company Number 05461637) on Nov. 7. The administrator can be reached at: Mark Simon Reynolds Valentine & Co. 4 Dancastle Court 14 Arcadia Avenue London N3 2HS United Kingdom Tel: 020 8343 3710 Fax: 020 9343 4486 Rejuve Ltd. can be reached at: London Heathrow Airport Hounslow Middlesex TW6 1AP United Kingdom Tel: 020 8745 5719 Fax: 020 8759 5195 SCOTTISH RE: Moody's Keeps Senior Unsecured Debt Rating at Ba3 -------------------------------------------------------------- Moody's Investors Service commented that after the recent earnings release issued by Scottish Re Group Limited, Moody's continues to review the company's ratings with direction uncertain. The Ba3 senior unsecured debt is affirmed. The rating agency added that it anticipates that it will take rating action on Scottish Re over the very near term, likely by mid next week, by which time it expects to have more information on the key driver of the outcome of the review process, which is the probability that Scottish Re will secure an equity infusion or sign a definitive agreement related to the sale of the company. According to the rating agency, the direction of the review indicates the possibility that Scottish Re's ratings could be downgraded, upgraded or confirmed depending on future developments at Scottish Re. The direction of the ratings review impacts the company's debt ratings and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re, Inc. If an equity investment in or sale of the company were completed, the ultimate ratings of the company would depend upon the structure of the deal, including an analysis of implicit and explicit support provided. Moody's added that a limited equity investment in Scottish Re would have less upward ratings pressure than an outright purchase of the company, with ongoing explicit or implicit support. "While the sales process has taken longer than anticipated, we expect there to be more definitive information -- either positive or negative -- on the likely outcome of that process by next week, at which point we would intend to address the status of our rating review," said Scott Robinson, Vice President & Senior Credit Officer at Moody's. "Given the extremely tight liquidity situation at the company, positive momentum in the sales process is necessary for a favorable resolution of the rating review. Any further delay in the process would likely result in further ratings downgrades," Robinson added. The rating agency highlighted the risk that certain items may need to be resolved prior to a sale. Moody's also noted that a potential investor could help expedite the resolution of these items. For example, if necessary, an investor could help Scottish Re eliminate its credit facility by helping to secure alternate letters of credit. Eliminating the credit facility is important since the agreement limits the movement of funds from SALIC to the ultimate holding company. Convertible note holders have the right to put $115 million of notes to Scottish Re at par on Dec. 6th, and as a consequence, the company needs to move funds to the holding company prior to that time to cover the potential call on liquidity. Notwithstanding the issues with the credit facility, Moody's emphasized that the sales process is the key rating issue as it is likely that in conjunction with any significant investment in Scottish Re, an investor would provide some form of short-term collateral and/or liquidity support to the company. "Failure to raise outside capital would have an immediate and adverse impact on the ratings of Scottish Re. While Scottish could potentially eliminate the bank facility on its own, we believe that the company would be significantly challenged in a runoff scenario," Robinson added. On Sept. 5, 2006, Moody's changed the direction of the review on the ratings of Scottish Re and the Baa3 IFS ratings of SALIC and Scottish Re, Inc. to direction uncertain from review for possible downgrade. Scottish Re Group Limited is a Cayman Islands company with principal executive offices located in Bermuda; it also has significant operations in Charlotte NC, Denver CO and Windsor England. On Sept. 30, 2006, Scottish Re reported assets of $13.8 billion and shareholders' equity of $1.3 billion. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. SKYEPHARMA PLC: Abbott Acquires Licensee Kos Pharmaceuticals ------------------------------------------------------------ SkyePharma PLC's exclusive licensee to jointly develop Flutiform(TM), Kos Pharmaceuticals, Inc., was acquired by Abbott. Flutiform(TM) is the Company's novel combination product for asthma and chronic obstructive pulmonary disease. The Company also disclosed that Abbott in their statement said, "Flutiform(TM), in-licensed from SkyePharma, is currently in late-stage development for adult and adolescent asthma and will provide an expanded presence for Abbott in the $10 billion asthma market, in addition to Kos' currently marketed asthma product." Frank Condella, chief executive officer, said, "We are encouraged by Abbott's statement regarding Flutiform(TM). This transaction is a positive development for our lead product. Abbott brings additional size and marketing strength in the primary care area which complements the specific expertise Kos has in inhalation therapies." Following discussions with the FDA on the Phase II trial results, the Company further disclosed that the Phase III trial of Flutiform(TM) started on schedule in February 2006 and it believes that Flutiform(TM) should reach the U.S. market in 2009. Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now twelve approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilisation capabilities. Going Concern Doubt As reported in the Troubled Company Reporter on Aug. 1, 2006, PricewaterhouseCoopers LLP in London raised substantial doubt about Skyepharma PLC's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the uncertainty as to when Skyepharma's certain strategic initiatives may be concluded and their effect on the company's working capital requirements. SNACK SOLUTIONS: Appoints Joint Administrators from DTE ------------------------------------------------------- A. Poxon and P. Reeves of DTE Leonard Curtis were appointed joint administrators of Snack Solutions Ltd. (Company Number 04275348) on Nov. 2. 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. Snack Solutions Ltd. can be reached at: Unit B16 Moss Industrial Estate St. Helens Road Leigh Lancashire WN7 3PT United Kingdom Tel: 01942 680771 SPIRIT MENSWEAR: Names Ninos Koumettou as Administrator ------------------------------------------------------- Ninos Koumettou of Alexander Lawson Jacobs was appointed administrator of Spirit Menswear Ltd. (Company Number 5342801) on Nov. 2. The administrator can be reached at: Ninos Koumettou Alexander Lawson Jacobs 1 Kings Avenue Winchmore Hill London EC1V 2NJ United Kingdom Tel: 0845 260 0590 Headquartered in Woking, England, Spirit Menswear Ltd. retails men's clothing. SPORT-LEICHT: Taps Alison M. Byrne to Administer Assets ------------------------------------------------------- Alison M. Byrne of Byrne Associates was appointed administrator of Sport-Leicht Ltd. (t/a Autotechnik) (Company Number 03291446) on Nov. 6. The administrator can be reached at: Alison M. Byrne Byrne Associates Suite 3 Farleigh House Farleigh Court Old Weston Road Flax Bourton Bristol, Avon BS48 1UR United Kingdom Tel: 01275 464 038 Fax: 01275 462 937 E-mail: alisonbyrne@byrneassociates.co.uk Sport-Leicht Ltd. can be reached at: 20B Polwarth Terrace Edinburgh Midlothian EH11 1NB United Kingdom Tel: 079 7012 3045 SWATCHMAKER LIMITED: Calls In Liquidator from Begbies Traynor ------------------------------------------------------------- David Hill of Begbies Traynor was appointed Liquidator of The Swatchmaker Limited on Nov. 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: The Swatchmaker Limited Ely Industrial Estate Williamstown Tonypandy Mid Glamorgan CF401RA United Kingdom Tel: 01443 423 111 THOMAS POTTER: Taps Tait Walker as Joint Administrators ------------------------------------------------------- Gordon S. Goldie and Allan David Kelly of Tait Walker were appointed joint administrators of Thomas Potter (Newcastle) Ltd. (Company Number 00194729) on Nov. 3. Tait Walker -- http://www.taitwalker.co.uk/-- have established core service lines to meet the ever growing complexity of our clients needs in a timely and efficient manner. Thomas Potter (Newcastle) Ltd. can be reached at: Unit 9 Gurney Way Aycliffe Industrial Park Newton Aycliffe County Durham DL5 6UJ United Kingdom Tel: 01325 317478 TIMBERTEC JOINERY: Brings In KPMG as Administrators --------------------------------------------------- Paul Andrew Flint, Brian Green and David John Crawshaw of KPMG LLP were appointed joint administrators of Timbertec Joinery (U.K.) Ltd. (Company Number 04566734) on Nov. 7. KPMG LLP -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Timbertec Joinery (U.K.) Ltd. can be reached at: Union Lane Kingsclere Newbury Berkshire RG20 4ST United Kingdom Tel: 01635 268663 TIPS & TOES: Creditors' Claims Due Jan. 1, 2007 ----------------------------------------------- Creditors of Tips & Toes Limited have until Jan. 1, 2007, to prove their debts by sending written statements of the amounts they claim to be due to them from the Company to appointed Joint Liquidator Paul David Williams at: Menzies Corporate Restructuring 43-45 Portman Square London W1H 6LY United Kingdom The company can be reached at: Tips & Toes Limited 280 Upper Richmond Road London SW156TQ United Kingdom Tel: 020 8789 3050 VEDANTA RESOURCES: Moody's Reviews Ratings on Indian Investments -------------------------- ------------------------------------- Moody's Investors Service placed the Baa3 corporate family rating and the Ba1 long-term senior unsecured rating of Vedanta Resources plc on review for possible downgrade. The rating action follows the company's announcement that it will enter into the commercial power generating business and build a 2,400 MW power plant in the State of Orissa, India, at a total cost of approximately US$1.9 billion. In addition, Vedanta intends to make further substantial investments in the power generation business. "Moody's believes that Vedanta's strategy to enter into commercial power generation business will elevate business and financial risks for the company," says Alan Greene, a Moody's Senior Vice President - and the agency's lead analyst for Vedanta. "Moody's notes that while Vedanta has built several captive power plants for its refineries and smelters, it has no track record in the commercial power generation business in India, which is a highly competitive industry whose dynamics are significantly different than those of the metals and mining industry. Such strategy will further increase execution risks, in addition to those related to its committed large-scale project development program over the next 3-5 years," adds Greene. In addition, Moody's notes Vedanta's intention to consolidate its business interests held by its 76% owned subsidiary, Sterlite Industries (India) Ltd. in Hindustan Zinc Limited (HZL, 64.9% owned by Sterlite) and Bharat Aluminium Company Ltd (BALCO, 51.0% owned by Sterlite) through the exercise of the call options, subject to the India Government's approval. Moody's recognizes that Vedanta is benefiting from the peak of the industry cycle with high metal prices supporting strong cash flow generation, as evidenced in the interim results for the current financial year. However, the substantial capex requirements, expected to be part-funded by debt, will likely put negative pressure on the company's leverage position. Moody's also notes the potential call on Vedanta's cash resources should it exercise its rights to increase its indirect shareholdings in major operating companies, including HZL and BALCO. The review will focus on how the power project and acquisitions or consolidation of its business interests will be funded, and the related impact on the capital structure of Vedanta, with consideration given to the proposed issue of ADRs by Sterlite. Moody's will also assess Vedanta's ability to manage the business risks associated with setting up the commercial power generation business. Headquartered in London, U.K., Vedanta Resources plc is a metals and mining company focused on integrated zinc and alumina/aluminium as well as copper smelting and refining operations predominantly in India. Listed on the London Stock Exchange, the company is 54% owned by Volcan Investments Ltd. VENDING LIMITED: Hires Kay Johnson Gee as Administrator ------------------------------------------------------- Jonathan Elman Avery Gee of Kay Johnson Gee was appointed administrator of Vending Ltd. (Company Number 01899347) on Nov. 9. The administrator can be reached at: Jonathan Elman Avery Gee Kay Johnson Gee Griffin Court 201 Chapel Street Salford Manchester Greater Manchester M3 5EQ United Kingdom Tel: 0161 832 6221 Fax: 0161 834 8479 Headquartered in Worcester, England, Vending Ltd. supplies, services and operates vending machines. VIENTIA DESIGN: Brings In Centrum Recovery as Administrator ----------------------------------------------------------- David Andrew Field of Centrum Recovery Ltd. was appointed administrator of Vientia Design Ltd. (formerly Natalie Clegg Design Ltd) (Company Number 03690797) on Nov. 3. The administrator can be reached at: David Andrew Field Centrum Recovery Ltd. Cambridge House North Church St. Bakewell Derbyshire DE45 1DB United Kingdom Tel: 01629 810260 Vientia Design Ltd./Natalie Clegg Design Ltd. can be reached at: Station Road Great Shelford Cambridge Cambridgeshire CB2 5LT United Kingdom Tel: 01223 847 755 Fax: 01223 847 887 W. A. KELLY: Creditors Confirm Liquidator's Appointment ------------------------------------------------------- Creditors of W. A. Kelly & Company Limited confirmed on Nov. 8 the appointment of Stephen Franklin of Panos Eliades, Franklin & Co. as the company's Liquidator. The company can be reached at: W. A. Kelly & Company Limited 94 Thornton Avenue Hounslow London W4 1QQ United Kingdom Tel: 020 8995 1234 Fax: 020 8994 5628 WHITEHOUSE PRESSBRAKE: Taps Administrator from Findlay James ------------------------------------------------------------ Alisdair J. Findlay of Findlay James was appointed administrator of Whitehouse Pressbrake & Shearing Ltd. (Company Number 02783172) on Nov. 1. The administrator can be reached at: Alisdair J. Findlay Findlay James Saxon House Saxon Way Cheltenham Gloucestershire GL52 6QX United Kingdom Tel: 01242 576555 Fax: 01242 576999 E-mail: ajf@finjam.com Headquartered in Dudley, England, Whitehouse Pressbrake & Shearing Ltd. manufactures metal components. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 293 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Dollfus Mieg & Cie S.A. DS (16) 143 (45) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (10) 120 (5) Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 Rhodia S.A. RHA (788) 6,681 171 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Selcodis S.A. SPVX (18) 128 22 Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (174) 3,003 606 Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Plambeck Neue Energien AG PNE3 (4) 141 19 Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) GREECE ------ Empedos S.A. EMPED (34) 175 (48) Pouliadis Associates Corporation POUL (28) 124 (31) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- Exbus Asset Management Nyrt. EXBUS (30) 118 (5,162) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) Wind Telecomunicazioni S.p.A. (10) 12,698 (815) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) Vista Alegre Atlantis SGPS S.A. VAAAE (18) 193 (83) ROMANIA ------- Oltchim RM Valce OLT (45) 232 (321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (185) 378 (11,107) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (10) 134 (37) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dnepropetrovsk Metallurgical Plant Imeni Petrovsko (2) 278 (509) Dniprooblenergo (38) 478 (797) Donetskoblenergo (166) 706 (1,320) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker Plc ANK.L (22) 115 13 Atkins (WS) Plc ATK (63) 1,279 70 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,264) 2,818 (253) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (4) 948 (175) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (1,031) 3,875 494 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Farner Plc PFL (33) 964 127 Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (490) 155 (80) Wincanton Plc WIN (66) 1,236 (71) ********* 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 * * *