/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061124.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, November 24, 2006, Vol. 7, No. 234 Headlines A U S T R I A APPSOLUT SOFTWARE: Eisenstadt Court Orders Business Closure BOEHM KG: Linz Court Orders Business Shutdown BUCHDRUCKEREI PEISSER: Creditors' Meeting Slated for Nov. 30 GAMAN LLC: Creditors' Meeting Slated for November 28 KURT GUCZOGI: Creditors' Meeting Slated for December 4 MEKY TRANSPORT: Claims Registration Period Ends December 4 PROMISE XXS: Fitch Rates EUR49.5-Mln Class E Notes at BB F I N L A N D DYNEA INT'L: Sells U.S. Operations to Teacher's Private DYNEA INT'L: Unit Sale Cues S&P's Developing Watch on B Rating F R A N C E ALCATEL SA: Partners with CTM to Roll Out IP Infrastructure AUTOCAM CORP: Possible Non-Payment Cues S&P to Junk Ratings PHILLIPS-VAN HEUSEN: Earns US$50.8 Million in Third Quarter 2006 POLYMER GROUP: Weak Performance Spurs S&P to Revise Outlook TITAN EUROPE: Fitch Keeps Low-B Ratings on GBP4.2-Million Notes G E R M A N Y A. ST. BAU: Creditors' Meeting Slated for December 6 APPTIS INC: S&P Rates Proposed US$180-Mln Sr. Facility at 'B+' BEAB CONSTRUCTION: Creditors' Meeting Slated for December 5 CS COMPONENT: Creditors' Meeting Slated for December 5 DAIMLERCHRYSLER AG: Mulls Subcompact Car Deal with Chery Auto ERIK THEISSEN: Claims Registration Ends December 5 HUHN KABELMONTAGEN: Claims Registration Ends December 4 JAKOB MASCHINENBAU: Claims Registration Ends December 5 OPEN TEXT: Earns US$7.3 Million in First Quarter Ended Sept. 30 PROMISE-I MOBILITY: Moody's Rates Class E Notes at (P)Ba1 PROMISE XXS: Fitch Rates EUR49.5-Mln Class E Notes at BB PROMISE-Z 2001: S&P Assigns Low-B Ratings to Class E Notes RALF KOENCKE: Claims Registration Ends December 6 RC2 CORP: Earns US$19.4 Million in Third Quarter 2006 SALIX INTERNATIONAL: Claims Registration Ends December 1 SMART SME: Moody's Assigns (P)Ba2 Rating on Class E Notes UM-FLIESEN: Claims Registration Ends November 29 VEREIN FREESTYLE: Claims Registration Ends November 29 H U N G A R Y BORSODCHEM NYRT: Returned Shares Increases Treasury Stock I R E L A N D ADVANCED MEDICAL: Sees US$45-Mln Revenue Cut From Product Recall ELAN CORP: Completes US$615 Million Senior Notes Offering ENTRY FUNDING: Moody's Puts Low-B Ratings on EUR16-Million Notes I T A L Y SMART SME: Moody's Assigns (P)Ba2 Rating on Class E Notes K A Z A K H S T A N ATAMEKEN-2030 LLP: Akmola Court Opens Bankruptcy Proceedings AVTOSPHERASNAB LLP: Creditors Must File Claims by Dec. 22 ERNA SERVICE: Claims Filing Period Ends Dec. 22 KAZ BEEF: Proof of Claim Deadline Slated for Dec. 22 LACORTE-PETROPAVLOVSK: Creditors' Claims Due Dec. 22 MEN-A LLP: Akmola Court Begins Bankruptcy Proceedings TABYS JSC: Proof of Claim Deadline Slated for Dec. 22 TAIMAS LLP: Claims Filing Period Ends Dec. 22 TRANS EXPRESS: Proof of Claim Deadline Slated for Dec. 22 VAGONOREMONTNY ZAVOD: Court Starts Bankruptcy Procedure K Y R G Y Z S T A N KYRGYZRAZNOOPTORG JSC: Public Auction Scheduled for Dec. 18 VESTA-TOKMOK LLC: Public Auction Scheduled for Dec. 14 N E T H E R L A N D S HARBOURMASTER CLO 7: Fitch Rates EUR23-Million Notes at BB KONINKLIJKE AHOLD: Albert Heijn Unit to Convert Konmar Stores LANCELOT 2006: Fitch Gives BB Rating to EUR12 -Mln Class E Notes POLYMER GROUP: Weak Performance Spurs S&P to Revise Outlook N O R W A Y AKER KVAERNER: Inks Drilling Equipment Deal with PPL Shipyard AKER KVAERNER: Unveils Financial Calendar for 2007 P O L A N D AUTOCAM CORP: Possible Non-Payment Cues S&P to Junk Ratings BORSODCHEM NYRT: Returned Shares Increases Treasury Stock R U S S I A AGRO-PROM-KHIMIYA: Court Names I. Borzov as Insolvency Manager AVNYUGSKIY WOOD-PROM-KHOZ: Bankruptcy Hearing Slated for Jan. 15 BSPB FINANCE: Fitch Assigns B/RR4 Ratings to US$125-Mln Notes CBOM FINANCE: Fitch Assigns B- Rating on US$100-Mln Eurobond FLAX FACTORY: Court Names S. Lebedev as Insolvency Manager INVESTMENTS AND SECURITIES: Names A. Koshechkov to Manage Assets KHARANUTSKIY COAL: Court Names K. Sobolev as Insolvency Manager PROKOPYEVSKIY FACTORY: Bankruptcy Hearing Slated for Feb. 28 NATUKHAEVSKAYA CJSC: Bankruptcy Hearing Slated for Mar. 5 NOVOPAVLOVSKOYE AGRO: Bankruptcy Hearing Slated for Jan. 22 SAMUSKIY FACTORY: Court Names S. Lizunov as Insolvency Manager SEVESTRA CJSC: Court Names S. Lizunov as Insolvency Manager SILIKANYJ FACTORY: Court Names V. Togmitov as Insolvency Manager SLADKOVSKOYE CJSC: Court Starts External Bankruptcy Process STROY-MONTAGE-3: Court Names S. Lebedev as Insolvency Manager VIMPEL-COMMUNICATIONS: Moscow Court Finalizes UKS Acquisition VIMPEL-COMMUNICATIONS: To Unveil Nine-Month Results on Nov. 30 VNESHTORGBANK JSC: Launches Vietnam-Russia Joint Venture Bank ZAVODOUKOVSKIY LLC: Bankruptcy Hearing Slated for Dec. 28 S P A I N BANKINTER 13: Moody's Junks EUR20.6-Million Series E Notes FREEPORT-MCMORAN: Purchase Plan Prompts DBRS to Review Ratings KONINKLIJKE AHOLD: Albert Heijn Unit to Convert Konmar Stores VALENCIA HIPOTECARIO: Fitch Junks EUR10.4-Million Class D Notes S W I T Z E R L A N D ADVANCED MEDICAL: Sees US$45-Mln Revenue Cut From Product Recall U K R A I N E ATTIK CJSC: Court Names O. Sklyarenko as Insolvency Manager AVTOLUKS LLC: Court Names Nina Sarichev as Insolvency Manager HLIBOROB CJSC: Court Names Vitalij Peychev as Insolvency Manager KALINA: Cherkassy Court Names Mikola Zanko as Liquidator RIANT LLC: Rivne Court Names I. Dragun as Insolvency Manager SIRET OJSC: Chernivtsi Court Starts Bankruptcy Supervision SKIF-DOSTUP LLC: Court Names Sergij Moroz as Insolvency Manager TORWOOD CONSULTING: Court Names Sergij Zhezherya as Liquidator VIMPEL-COMMUNICATIONS: To Unveil Nine-Month Results on Nov. 30 VIMPEL-COMMUNICATIONS: Moscow Court Finalizes UKS Acquisition U N I T E D K I N G D O M AIRCOOL LIMITED: Nominates David Rubin as Liquidator AKER KVAERNER: Inks Drilling Equipment Deal with PPL Shipyard AKER KVAERNER: Unveils Financial Calendar for 2007 ANGRY INCORPORATED: Taps John Twizell to Liquidate Assets BARRY DAVIES: Creditors' Claims Due Jan. 9, 2007 BERNSTEIN GROUP: Taps KPMG to Administer Assets BERRY BIRCH: Appoints Administrators from KPMG CCT INTEGRATED: Brings In Liquidators from Kingston Smith CHOICES INDEPENDENT: Brings In Begbies Traynor as Administrators CLIFF COLE: Appoints Keith Barry Stout as Liquidator COMMERCIAL GARAGE: Names T. Papanicola as Administrator DELMARK ENGINEERING: Creditors' Meeting Slated for December 1 EMI GROUP: Inks Content Licensing Partnership with Gotuit Media EMI GROUP: Inks Partnership Deal with Shanghai Media Group ENRON CORP: Court Approves US$90MM Settlement with CFSB Parties ENRON CORP: Seeks Approval for Deseret Generation Settlement EQUITABLE LIFE: Wants Business Moved to Canada Life Under Scheme FEDERAL-MOGUL: Court Places Insurers' Lift Stay Motion On Hold FAIRGROUND GAMING: Liquidating Assets Following Unit Disposal GENERAL MOTORS: Kirk Kerkorian Cuts GM Stake to 7.4% HERTZ CORP: Moody's Changes Outlook After IPO Completion INHOCO 3005: Appoints Joint Administrators from KPMG INTERFACE INC: Moody's Lifts Rating to B1 on Improved Margin MENDIP PLYWOOD: Hires Joint Administrators from BDO Stoy P.J. BUTLER: Taps Begbies Traynor as Administrators PHOENIX INDUSTRIAL: Appoints Begbies Traynor as Administrators RIBBLESDALE ENGINEERING: Hires Liquidator from J M Marriott SAMSONITE CORP: Offers Senior Notes & Declares Special Dividend SAMSONITE CORP: S&P Revises Outlook on Special Dividend Issuance SEA CONTAINERS: Can Assign Admin. Status to Claims Until Dec. 19 SEA CONTAINERS: Reports Initial Consolidated Cash Flow Forecast SERVKO ELECTRICAL: Calls In Liquidators from Poppleton & Appleby SEWARD DEVELOPMENTS: Appoints Begbies Traynor as Administrators SISTERLARK LIMITED: Names Administrators from DTE SOUTH COAST: Claims Filing Period Ends Dec. 21 TITAN EUROPE: Fitch Keeps Low-B Ratings on GBP4.2-Million Notes TOTAL MOVE: Taps Menzies as Joint Administrators UNITED POINT: Names Jeffrey Mark Brenner Liquidator V-LAN LIMITED: Appoints DTE Leonard as Joint Administrators VANILLE DIRECT: Brings In BDO Stoy to Administer Assets WHITES & ELLAND: Brings In Joint Liquidators from Kroll WILLIAM DOBSON: Creditors Confirm Liquidators' Appointment * BOOK REVIEW: Trump: The Saga of America's Most Powerful Real Estate Baron ********* ============= A U S T R I A ============= APPSOLUT SOFTWARE: Eisenstadt Court Orders Business Closure ----------------------------------------------------------- The Land Court of Eisenstadt entered an order Oct. 10 closing the business of LLC appsolut software (FN 228252s). Court- appointed property manager Adalbert Hausmann recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Adalbert Hausmann Esterhazyplatz 6a 7000 Eisenstadt, Austria Tel: 02682/64044 Fax: 02682/64044 30 E-mail: ra.schreiner@aon.at Headquartered in Eisenstadt, Austria, the Debtor declared bankruptcy on Aug. 24 (Bankr. Case No. 26 S 89/06z). BOEHM KG: Linz Court Orders Business Shutdown --------------------------------------------- The Land Court of Linz entered an order Oct. 10 shutting down the business of KG Boehm (FN 24799w). Court-appointed property manager Rene Lindner recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Rene Lindner 4020 Linz, Austria Tel: 78 40 80-34 Fax: 78 40 80-5 E-mail: konkurs@hengstschlaeger-lindner.at Headquartered in Saxen, Austria, the Debtor declared bankruptcy on Oct. 6 (Bankr. Case No. 38 S 46/06b). BUCHDRUCKEREI PEISSER: Creditors' Meeting Slated for Nov. 30 ------------------------------------------------------------ Creditors owed money by LLC Buchdruckerei Peisser & Vogel (FN 58344a) are encouraged to attend the creditors' meeting at 2:25 p.m. on Nov. 30 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Graz Room 230 Hall L 2nd Floor Graz, Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Oct. 10 (Bankr. Case No. 25 S 90/06g). Norbert Kollerics serves as the court-appointed property manager of the bankrupt estate. Michael Axmann represents the debtor in the bankruptcy proceedings. The property manager can be reached at: Dr. Norbert Kollerics Klosterwiesgasse 61 8010 Graz, Austria Tel: 0316/819291 Fax: 0316/819291-9 E-mail: office@kollerics.at The debtor's representative can be reached at: Dr. Michael Axmann Kalchberggasse 10 8010 Graz, Austria GAMAN LLC: Creditors' Meeting Slated for November 28 ---------------------------------------------------- Creditors owed money by LLC Gaman (FN 258235h) are encouraged to attend the creditors' meeting at 9:15 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 Frauendorf an der Au, Austria, the Debtor declared bankruptcy on Oct. 10 (Bankr. Case No. 14 S 161/06a). 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.at KURT GUCZOGI: Creditors' Meeting Slated for December 4 ------------------------------------------------------ Creditors owed money by LLC Kurt Guczogi (FN 242685s) are encouraged to attend the creditors' meeting at 10:30 a.m. on Dec. 4 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Eisenstadt Hall F Eisenstadt, Austria Headquartered in Oberpullendorf, Austria, the Debtor declared bankruptcy on Oct. 10 (Bankr. Case No. 26 S 111/06k). Christian Supper serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Christian Supper Hauptplatz 1 7350 Oberpullendorf, Austria Tel: 02612/43543 Fax: 02612/43543-10 E-mail: op@rss.at MEKY TRANSPORT: Claims Registration Period Ends December 4 ---------------------------------------------------------- Creditors owed money by LLC Meky Transport & Bau (FN 260454x) have until Dec. 4 to file written proofs of claims to court- appointed property manager Johannes Leon at: Dr. Johannes Leon Reichsratsstrasse 5 1010 Vienna, Austria Tel: 402 15 54 Fax: 402 15 54 54 Email: office@leonlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Dec. 18 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 2102 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 10 (Bankr. Case No. 45 S 69/06k). PROMISE XXS: Fitch Rates EUR49.5-Mln Class E Notes at BB -------------------------------------------------------- Fitch Ratings assigned expected ratings to PROMISE XXS 2006-1 GmbH's issue of EUR460.75 million of floating-rate notes: -- EUR250,000 Class A+: AAA; -- EUR179,500,000 Class A: AAA; -- EUR108,000,000 Class B: AA; -- EUR78,500,000 Class C: A; -- EUR45,000,000 Class D: BBB; and -- EUR49,500,000 Class E: BB. The Class F and G notes, totaling EUR45,000,000 and EUR49,500,000 respectively are not rated. The final ratings are contingent upon the receipt of final documents conforming to information already received. The transaction is a partially funded synthetic collateralized debt obligation referencing two sub portfolios, a HVB- and a BA- CA originated portfolio, of German and Austrian small to medium- sized enterprise loans, including promoted loans under programs sponsored by German government-owned credit institutions and Oesterreichische Kontrollbank AG. The transaction provides credit protection on a portfolio amounting to EUR4.5 billion that can be replenished in compliance with a master amortization schedule until November 2011. The transaction is based on KfW's PROMISE program. HVB and BA- CA will buy credit protection in respect of their sub-portfolio from KfW under a loss guarantee. KfW will hedge its exposure under the guarantees, by issuing credit-linked certificates of indebtedness to be bought by the issuer, and by entering into a senior credit default swap. The issuer will hedge itself by issuing credit-linked notes. The expected ratings of the notes are based on the credit quality of the reference portfolio, the credit enhancement, the quality of the collateral, the strength of the swap counterparty and the transaction's sound financial and legal structure. C Credit enhancement for the Class A to E notes is provided by synthetic excess spread and subordination, which is available on a quarterly "use it-or-lose it basis". The synthetic excess spread is calculated based on the performing pool balance. The expected ratings address the timely payment of interest and the ultimate repayment of principal. Replenishments may be conducted on a "not to worsen basis" but will be suspended upon the breach of the replenishment suspension trigger, which refers to the cumulative default ratio exceeding 3.5%. Replenishment criteria include a portfolio weighted average life covenant taking into account replenishments and scheduled amortizations. The notes will be redeemed on a modified pro rata basis, synthetically replicating either a pro rata redemption or a sequential redemption scheme depending on the amount of expected losses at each payment date. Synthetic provisions are built against the amortization of the lower ranking tranches. The modified pro rata redemption switches to a fully sequential redemption if the reference portfolio notional balance has reduced to below 57% or if a sub-pool termination event has been triggered. ============= F I N L A N D ============= DYNEA INT'L: Sells U.S. Operations to Teacher's Private ------------------------------------------------------- Dynea International Oy sold its North American operations to Teacher's Private Capital on Nov. 21. The divestment of operations in North America allows Dynea to focus on growing markets in Eastern Europe and Asia Pacific and to further strengthen its market position in these areas. "The divestment of Dynea's North American operations is a logical step in our strategy to take a leading position in the markets where we operate. The transaction also gives us the opportunity to create added value by investing in new technology to support our customers," Roger Carlstedt, Dynea's president and CEO disclosed. Dynea's operations in North America include 13 production units with approximately 700 employees in Canada, the United States and Mexico, and annual sales of more than EUR450 million. "This transaction will also give us resources for expansion in our key growth areas. With operations in 23 countries, Dynea will continue to help its customers grow by providing value through our leading resins and overlays technology world-wide," Filip Frankenhaeuser, Dynea's executive vice president and CFO added. About Teachers' Private Capital Headquartered in Ontario, Canada, Teachers' Private Capital -- http://www.otpp.com/-- is a private investment arm of the CDN96 billion Ontario Teachers' Pension Plan, an independent corporation responsible for investing the fund and administering the pensions of Ontario's 264,000 active and retired teachers. With more than CDN11 billion in assets, Teachers' Private Capital is one of Canada's largest private investors, providing equity and mezzanine debt capital for large and mid-cap companies, venture capital for developing industries, and financing for a growing portfolio of infrastructure and timberland assets worldwide. About Dynea International Headquartered in Helsinki, Finland, Dynea International Oy -- http://www.dynea.com/-- provides adhesion and surfacing solutions. In 2005, Dynea had revenues of EUR1.2 billion. After the transaction Dynea has 39 production units and some 2,200 employees in 23 countries in Europe, Asia Pacific and South America. DYNEA INT'L: Unit Sale Cues S&P's Developing Watch on B Rating -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' long-term corporate rating on Finnish specialty chemicals company Dynea International Oy on CreditWatch with developing implications, following Dynea's announcement of the sale of its U.S. unit. The CreditWatch developing status means that the rating could be raised, lowered, or affirmed. "The outcome will depend on the amount of the sale proceeds, their use, and the business profile of the remaining assets," said Standard & Poor's credit analyst Lucas Sevenin. The company had debt of nearly EUR480 million at end-September 2006. The rating could be favorably affected if: -- the proceeds are sufficient and used to redeem all or a great part of financial debt; -- the group obtains sufficient new financing for its remaining operations; and -- the group's leverage policy is in line with the new business profile. On the other hand, the rating could be negatively affected if the business profile of the remaining operations is far weaker than at present and leverage does not decrease sufficiently to compensate, and/or if S&P expects the leverage to increase to fund potential future acquisitions. Furthermore, the rating agency expects to evaluate the company's new business strategy and future financial policy. The rating could, alternatively, be affirmed, depending on the final mix of debt reduction and business risk profile. "From a business standpoint, we view the sale of this main EBITDA contributor as negative," said Mr. S�venin. "We will resolve the CreditWatch status once we obtain more clarity on the net amount and uses of proceeds, future operational strategy, financial policy, and the main shareholder's position." The rating on Dynea primarily reflects its high leverage, exposure to very competitive markets, and concentration in the cyclical construction and furniture industries. These factors are somewhat offset by Dynea's strong market shares in the formaldehyde-based resins industry, and its good geographic diversification. With 2005 sales of EUR1.1 billion, Dynea is one of the world's largest producers of formaldehyde-based resins, key in the manufacture of wood products--such as plywood and particle board--used in the building industry. =========== F R A N C E =========== ALCATEL SA: Partners with CTM to Roll Out IP Infrastructure ----------------------------------------------------------- Alcatel S.A. and Companhia de Telecomunicacoes de Macau S.A.R.L. are collaborating to roll out critical infrastructure that will enable sophisticated Internet Protocol communications services for CTM's business and consumer customers in order to realize the operator's "Digital Macau" vision. CTM's "Digital Macau" project delivers a new generation of communications services that will keep pace with and support the Macau Special Administrative Region's sustained economic growth. Next generation network services will be provided in four key areas: mobile, broadband, high-speed data services and applications. Following its next generation network services launch which is expected by the first quarter 2007, CTM will further develop advanced services, and bandwidth on demand all with the differentiated quality of service (QoS) necessary to meet the needs of its customers. "CTM is committed to provide a quality communications network that responds immediately to the current explosive demand for services, and is also designed to handle the future communications and entertainment demands of Macau's growing tourist economy," Phil Green, Chief Executive Officer of CTM, said. "This partnership will definitely mark an important step for CTM in building "Digital Macau", supporting the growing economy and fulfilling customers' needs." "We are honored to collaborate with CTM as they introduce this unique technology that supports their immediate needs in realizing "Digital Macau" and provides the flexible and service- rich foundation to expand their offerings as their business requirements and subscriber growth demand," Basil Alwan, President of Alcatel's IP activities, said. The demand for advanced multimedia and data services in Macau is expected to increase sharply in the coming years as investments in the tourism and gaming sector increase. Economic growth is averaging eight to ten percent per year. In 2006 alone, gaming revenues will total US$6 billion - matching those of Las Vegas - and hotel room capacity is expected to double to 30,000 by the end of 2008. Alcatel's IP portfolio has key features including high- availability, quality of service, and scalability. At the heart of Alcatel's solution for CTM is the Alcatel 7750 Service Router (SR), a superior multi-service edge router, built for service providers who are looking to deliver a new wave of business and residential services on a single IP/MPLS network. The solution also includes the Alcatel 5620 Service Aware Manager, which will enable CTM to rapidly provision VPLS, VPRN, Internet enhanced services and virtual leased line services, for a smooth evolution from traditional routers to service routers. With more than 150 customers in 65 countries, Alcatel is demonstrating that its IP portfolio is ideally suited for the needs of operators who are transforming their networks for a new phase of higher-value, user-driven service delivery. According to Synergy Research Group, Alcatel was #2 in the Services Edge Router category in Q2 2006, with 19% market share, following five consecutive quarters of market share gain. Alcatel is involved in more than 40 triple play projects and another 40 network transformation projects worldwide. IPTV services are expected to reach over 70 million subscribers by 2010. About CTM Companhia de Telecomunicacoes de Macau S.A.R.L. -- http://www.ctm.net -- is a joint venture of the international telecommunications giants Cable and Wireless and Portugal Telecom, together with CITIC Pacific and Macao Post. Being the only full telecom service provider of Macau, CTM plays an important role in the development of the telecom infrastructure and strives to provide world class telecommunications services to Macau, which included Fixed Telephony, Mobile, Internet and Enterprise Solutions. 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. AUTOCAM CORP: Possible Non-Payment Cues S&P to Junk Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Kentwood, Mich.-based Autocam to 'CC' from 'CCC+' and placed the ratings on CreditWatch with negative implications. S&P also lowered the ratings on the company's senior secured bank facilities to 'CC' from 'CCC+' and the senior subordinated notes to 'C' from 'CCC-'. These actions followed Autocam's statements, in its recent 10-Q filing with the SEC, that it may be unable to meet its Dec. 15, 2006, interest payment on its US$140 million senior subordinated notes, that it is engaged in restructuring discussions with holders of its senior subordinated notes regarding a possible equity swap, that it does not expect to be in compliance with financial covenants on its senior credit facilities and second-lien credit facility as of Dec. 31, 2006, and that it is seeking to amend its senior first-lien credit facilities and its second-lien credit facility to provide covenant relief. Autocam is exploring various options to improve liquidity, including selling assets and securing other sources of capital. The company's balance sheet debt as of Sept. 30, 2006, totaled US$320 million. "We would lower the ratings further if the company fails to meet its contractual debt obligations," said Standard & Poor's credit analyst Nancy Messer. "The downgrades reflect Autocam's istressed financial situation and the increasing possibility that the company will be forced to restructure in the near term. We believe it is unlikely that the company will be able to secure alternative financing in the absence of waivers for its current covenants or incremental liquidity from its equity sponsors, because of its very high debt leverage and weak operating results." PHILLIPS-VAN HEUSEN: Earns US$50.8 Million in Third Quarter 2006 ---------------------------------------------------------------- Phillips-Van Heusen Corp. reported third quarter 2006 GAAP net income of US$50.8 million, compared with third quarter 2005 GAAP net income of US$40.3 million. For the nine months, GAAP net income was US$128.5 million in 2006 compared with US$88.8 million in 2005. The Company reported that in the Calvin Klein licensing business, operating earnings increased 31% and operating margins were up almost 700 basis points. The Company's wholesale and retail businesses grew operating earnings a combined 17% on 6% sales growth, as strong product drove gross margin improvements in the quarter. Total revenues in the third quarter of 2006 increased 7% to US$568.3 million from US$533.2 million in the prior year. Revenue growth was driven by an 11% increase in Calvin Klein royalties due to continued growth from existing and new licensees. The comp store sales grew 11%. In addition, revenues benefited from the growth across all of the Company's wholesale sportswear businesses, but were partially offset by an anticipated sales decrease in the Company's wholesale dress shirt business reflecting the residual impact of the Federated/May door closings for the year. For the nine months, total revenues increased 6% to US$1.5 billion in 2006 from US$1.4 billion in 2005. The Company ended the quarter with US$358.6 million in cash, an increase of US$188.3 million compared with the prior year's third quarter. Receivables ended the quarter 11% below prior year levels. Inventories ended the quarter 7% up from last year and in line with the Company's sales growth projections for the fourth quarter. The Company's higher year over year cash position, coupled with higher investment rates of return, resulted in a 46% decrease in net interest expense for the third quarter. Commenting on the results, Emanuel Chirico, chief executive officer, noted, "We are extremely pleased with our third quarter results, which continue the positive trends we experienced in the first half of this year. The strength of the Calvin Klein brand and the execution of our business model for that brand continue to be key drivers in our earnings growth. The performance of Calvin Klein, along with the growth exhibited by our outlet retail and wholesale sportswear businesses, enabled us to again exceed our previous guidance." Mr. Chirico continued, "During the third quarter, we announced our agreement to acquire Superba Inc., a neckwear company with estimated 2006 revenues of US$140 million. The deal is expected to be effective Jan. 1, 2007, and will be modestly accretive to 2007 earnings. This acquisition is consistent with our strategy of adding brands or product categories that are synergistic and complement our existing businesses, in this case, dress shirts." Mr. Chirico concluded, "Our brands continue to perform extremely well across all channels of distribution, enabling us to intensify the investments we are making in marketing our brands. During this upcoming holiday season, we are planning a US$20 million increase in national advertising spending to support our Calvin Klein, Van Heusen, IZOD, and Arrow brands. We believe that in the context of the changing retail landscape it is critical to take our message directly to consumers. We feel that this continued commitment to the long-term strength of our brands will pay dividends in the future." 2006 Revenues Guidance The Company projects fourth quarter 2006 revenues to be in a range of US$528 million to US$532 million, which represents an increase of 15% to 16% over last year. Total revenues for the full year 2006 are expected to be US$2.06 billion to US$2.07 billion, which represents an increase of 8% over last year. The Company's 2006 revenues and earnings guidance does not reflect the impact of the pending acquisition of Superba Inc., which will not be expected to have a material effect on 2006 revenues and earnings. Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns and markets the Calvin Klein brand worldwide. It is a shirt company that markets a variety of goods under its own brands: Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co., Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole, BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael Kors, Chaps, and Donald J. Trump Signature. * * * As reported in the Troubled Company Reporter on Oct 10, 2006 Moody's Investors Service's in connection with the implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Canadian Retail sector, confirmed its Ba3 Corporate Family Rating for Phillips Van Heusen Corporation. POLYMER GROUP: Weak Performance Spurs S&P to Revise Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Polymer Group Inc. to negative from stable. All ratings, including the 'BB-' corporate credit rating, were affirmed. The outlook revision follows several quarters of weaker-than- expected performance and somewhat higher-than-expected debt primarily due to raw material cost escalation and some product mix shifts. Also contributing to the disappointing results were several one- time items such as: -- costs related to technical problems associated with new equipment (since resolved), -- an acquisition that was not consummated, -- the closing of manufacturing capacity, and -- moving the company's headquarters. "Despite signs that operating results have stabilized, and the potential benefits of new plant investments, we are concerned about the company's ability to return financial measures to levels appropriate for the ratings, particularly given less favorable economic prospects," said Standard & Poor's credit analyst Cynthia Werneth. The ratings on Polymer reflect the company's weak business position as a producer of non-woven and oriented polyolefin products and its aggressive financial profile. The narrow focus of Polymer's business operations is a limiting factor but is partially offset by the company's leading positions in its niche markets, good geographic sales and manufacturing diversity, favorable long-term growth prospects in certain end markets, and opportunities to increase sales and earnings following several recently completed capacity expansions. With annual revenues of nearly US$1 billion, Charlotte, N.C.-based Polymer manufactures products that are used in a wide range of disposable consumer applications, including baby diapers, feminine hygiene products, household and consumer wipes, disposable medical products, and various industrial applications, including automotive, filtration, and protective apparel. Leading global manufacturers of consumer, medical, and industrial products uses the company's non-wovens. Long-term industry growth rates are favorable and are driven by new applications for non-wovens in developed countries and volume increases in existing products as income levels increase in developing countries. However, recent weakness in auto and housing end markets, as well as lower hygiene product sales in connection with retailer de-stocking, have caused the company to fill capacity with lower-margin products. Although the retail issue appears to be temporary, auto and housing market weakness are likely to extend into the foreseeable future. TITAN EUROPE: Fitch Keeps Low-B Ratings on GBP4.2-Million Notes --------------------------------------------------------------- Fitch Ratings upgraded Titan Europe 2004-1 Plc's Class B to D notes due 2013 and affirmed the rest: -- GBP64.9 million Class A (XS0205704405) affirmed at AAA; -- GBP0.05 million Class X (XS0205719692) affirmed at AAA; -- GBP9.7 million Class B (XS0205720195) upgraded to AAA from AA; -- GBP13.8 million Class C (XS0205720609) upgraded to AAA from A; -- GBP6.9 million Class D (XS0205721839) upgraded to BBB+ from BBB-; -- GBP2.8 million Class E (XS0205722480) affirmed at BB; and -- GBP1.4 million Class F (XS0205722720) affirmed at B. The rating actions reflect the increased subordination and the expected redemption of the largest loan and subsequent sequential principal allocation as well as the performance of the two remaining loans. The borrower of the largest loan, the GBP71.3 million Audras loan, is in the final stages of selling the underlying property. The loan will be prepaid and the principal will be used to redeem Class A in full and Class B in part in January 2007. This will further increase the subordination levels. The pool will then comprise of only two of the original five loans. The GBP16.1 million Kandahar loan is secured on the Salters Court Shopping Centre in Droitwich and the GBP12 million CSAM loan is secured on a portfolio of seven commercial properties across the U.K. The loan-to-value of the CSAM loan stood at a low 30.8% and in October 2006, the interest coverage ratio was strong at 2.6x. On the other hand, Kandahar loan had a LTV of 67% and an ICR of 1.2x as at October 2006. Although the latter's LTV is considered high, this is an improvement from the original LTV of 87% after the Salters Court Shopping Centre was re-valued at GBP26 million in April 2006, an increase of GBP8 million. The Kandahar loan's ICR on a forward 12 month basis is expected to fall to 1.04x, breaching the covenant of 1.05x. However, this excludes additional income, e.g. rent from tenants staying in the property after lease expiry and this breach can easily be topped up from the available GBP1-million escrow fund. The borrower has so far met all obligations and is expected to continue to do so. Several new leases with current rent-free periods will start generating income in 2007 and therefore an improvement will be expected at this time. There is an available funds cap on the Classes E and F. Excess spread is used to pay interest on Class X. So far, GBP1.3 million of excess spread was generated. ============= G E R M A N Y ============= A. ST. BAU: Creditors' Meeting Slated for December 6 ---------------------------------------------------- The court-appointed provisional administrator for A. ST. Bau & Geruestbau GmbH, Petra Hilgers, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:45 a.m. on Dec. 6. 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 11:30 a.m. on March 14, 2007, at the same venue. Creditors have until Jan. 10, 2007, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against A. ST. Bau & Geruestbau GmbH on Oct. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A. ST. Bau & Geruestbau GmbH Duesseldorfer Road 65 10719 Berlin, Germany The administrator can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin, Germany APPTIS INC: S&P Rates Proposed US$180-Mln Sr. Facility at 'B+' -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' debt rating and '3' recovery rating to Apptis Inc.'s proposed US$180 million senior secured bank facility. The proposed facility will consist of a US$30 million five-year revolver and a US$150 million six-year term loan. The bank loan rating is 'B+', the same as the corporate credit rating, along with the '3' recovery rating, reflect our expectation of meaningful (50%-80%) recovery of principal by creditors in the event of a payment default. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and negative outlook on Chantilly, Virginia-based Apptis. Proceeds from the proposed bank facility will be used to repay existing debt, including an existing credit facility, US$50 million of senior subordinated cash pay notes, a portion of Apptis' senior subordinated Holdco payment-in-kind notes, and accrued PIK interest. Standard & Poor's ratings affirmation reflects the fact that this transaction is strictly a refinancing, and does not meaningfully impact Apptis' financial profile. BEAB CONSTRUCTION: Creditors' Meeting Slated for December 5 ----------------------------------------------------------- The court-appointed provisional administrator for BEAB Construction GmbH, Rolf Nacke, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:35 a.m. on Dec. 5. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:15 a.m. on March 13, 2007, at the same venue. Creditors have until Jan. 18, 2007, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against BEAB Construction GmbH on Oct. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BEAB Construction GmbH Kurfuerstenstr. 39 10785 Berlin, Germany The administrator can be reached at: Dr. Bernd Peters Gross-Berliner Damm 73 c 12487 Berlin, Germany CS COMPONENT: Creditors' Meeting Slated for December 5 ------------------------------------------------------ The court-appointed provisional administrator for CS Component Solutions GmbH, Hartwig Albers, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:45 a.m. on Dec. 5. 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 10:30 a.m. on Jan. 2, 2007, at the same venue. The District Court of Charlottenburg opened bankruptcy proceedings against CS Component Solutions GmbH on Sept. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CS Component Solutions GmbH Zitadellenweg 34 13599 Berlin, Germany The administrator can be reached at: Hartwig Albers Luetzowstr. 100 10785 Berlin, Germany DAIMLERCHRYSLER AG: Mulls Subcompact Car Deal with Chery Auto ------------------------------------------------------------- DaimlerChrysler AG is holding talks with Chinese auto maker Chery Automobile Co. and an unnamed non-Chinese company about a possible joint venture to produce a low-cost subcompact car, company Group Chief Executive Tom LaSorda was quoted by The Wall Street Journal as saying. Mr. La Sorda added that if the alliance with the Chinese company pursues, the cars would be distributed first in markets outside the U.S., such as Canada, Mexico and Western Europe. DaimlerChrysler AG Chairman and Chief Executive Officer Dieter Zetcher told WSJ that the company is exploring alternatives to develop lower-cost cars that are driving the Chinese market's growth. The lower-cost model will compete not only in the subcompact "B" segment, but also in the larger segments characterized in China by the Hyundai Elantra. Mr. Zetcher told the WSJ that he is concerned that he sees "manufacturers with significant volume" in subcompact and compact car segments, "but I don't see many manufacturers being profitable." With regards to the overall health of Chrysler Group, Mr. Zetsche emphasized that its U.S. unit is working on a plan to recover from a US$1.5 billion loss in the third quarter. However, the plan is not expected to be approved and disclosed this year, Mr. White relates. Meanwhile, DaimlerChrysler has launched the production of its new generation Mercedez-Benz E Class at its factory outside Beijing. WSJ states that the company will also be participating in a motor show in China in an effort to build sales volume in the country for its brands. In addition to the Chrysler 300 sedan and Mercedes E Class it already builds, the carmarker expects to assemble five models in China next year. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia, and Thailand. * * * The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. Outlook As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said it expects a slight decrease in worldwide demand for automobiles in the fourth quarter and thus slower market growth than in Q4 2005. For full-year 2006, the company anticipates market growth of around 3%. It expects unit sales in 2006 to be lower than in the previous year (4.8 million units). On Sept. 15, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount in the magnitude of US$6.3 billion. Although the company now has to assume that the profit contribution from EADS will be US$0.3 billion lower than originally anticipated because of the delayed delivery of the Airbus A380, DaimlerChrysler is maintaining this earnings target due to very positive business developments in the divisions Mercedes Car Group, Truck Group and Financial Services. ERIK THEISSEN: Claims Registration Ends December 5 -------------------------------------------------- Creditors of Erik Theissen GmbH have until Dec. 5 to register their claims with court-appointed provisional administrator Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 12, 2007, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall S 2.22 2. Stick William Route 21 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 Erik Theissen GmbH on Oct. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Erik Theissen GmbH Koelner Str. 116 53894 Mechernich, Germany Attn: Erik Theissen, Manager Pfarrer-Pensky-Way 7 53894 Mechernich, Germany The administrator can be contacted at: Jana Dettmer Suerst 3 53111 Bonn, Germany HUHN KABELMONTAGEN: Claims Registration Ends December 4 ------------------------------------------------------- Creditors of Huhn Kabelmontagen + Projektierungen GmbH have until Dec. 4 to register their claims with court-appointed provisional administrator Ulrich Kuehn. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 4, 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 Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Huhn Kabelmontagen + Projektierungen GmbH on Oct. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Huhn Kabelmontagen + Projektierungen GmbH Attn: Markus Gote, Manager Juttaweg 26 51069 Cologne, Germany The administrator can be contacted at: Ulrich Kuehn Riehler Str. 26 50668 Cologne, Germany JAKOB MASCHINENBAU: Claims Registration Ends December 5 ------------------------------------------------------- Creditors of Jakob Maschinenbau GmbH have until Dec. 5 to register their claims with court-appointed provisional administrator Sylvia Rhein. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Jan. 16, 2007, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Room 4.312 4th Floor Building D Mathildenplatz 15 64283 Darmstadt, 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 Darmstadt opened bankruptcy proceedings against Jakob Maschinenbau GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Jakob Maschinenbau GmbH Attn: Hans-Peter Jakob, Manager Gottlieb-Daimler-Road 5 64319 Pfungstadt, Germany The administrator can be contacted at: Sylvia Rhein Walter-Rathenau-Str. 24 64646 Heppenheim, Germany Tel: 06252/6877-0 Fax: 06252/6877-11 OPEN TEXT: Earns US$7.3 Million in First Quarter Ended Sept. 30 --------------------------------------------------------------- Open Text Corp. filed its first fiscal quarter financial statements ended Sept. 30, 2006, with the U.S. Securities and Exchange Commission Nov. 9, 2006. Total revenue for the first quarter was US$101.2 million, compared with US$92.6 million for the same period in the prior fiscal year. License revenue in the first quarter was US$28.8 million, compared with US$24.9 million in the first quarter of the prior fiscal year. Adjusted net income in the quarter was US$12.2 million compared with US$6.3 million for the same period in the prior fiscal year. Net income in accordance with U.S. generally accepted accounting principles was US$7.3 million, compared with a net loss of US$12.9 million for the same period in the prior fiscal year. The cash, cash equivalents and short-term investments balance as of Sept. 30, 2006, was US$111.2 million. Accounts receivable as of Sept. 30, 2006, totaled US$76.7 million, compared with US$73.6 million as of Sept. 30, 2005, and Days Sales Outstanding was 68 days in the first quarter of fiscal 2007, compared with 71 days in the first quarter of fiscal 2006. Operating cash flow in the first quarter of fiscal 2007 was US$9.6 million compared with US$300,000 in the first quarter of fiscal 2006. "With the addition of Hummingbird, we are the largest independent ECM provider. The combination of deep vertical solutions expertise, market independence and the ability to leverage Microsoft, Oracle and SAP, allows us to scale to the enterprise, offering customers comprehensive solutions and the capability of implementing an enterprise wide ECM strategy," Open Text president and chief executive officer John Shackleton said. "Now that we have completed the Hummingbird acquisition, our focus is on integrating the two organizations as quickly and smoothly as possible," Mr. Shackleton said. The majority of Hummingbird's integration will be completed during the second quarter of fiscal 2007, which ends on Dec. 31, 2006. As part of the integration, Open Text is reducing its worldwide workforce of 3,500 people by around 15%. The restructuring actions commenced in October 2006 and to date, around 60 percent of these reductions have been completed. The remaining staff reductions will to be completed by the end of November 2006. The staff reductions will be focused on redundant positions or areas of the business that are not consistent with the company's strategic focus. Open Text is also reducing 38 facilities by closing or consolidating offices in certain locations. "Actions are well underway to rationalize staff levels and consolidate facilities to meet our operating goals. Based on our expected run-rate in our second quarter, these actions will result in savings of around US$50 million for the current fiscal year and on an annualized basis, around US$80 million beginning in fiscal 2008," Open Text chief financial officer Paul McFeeters said. At Sept. 30, 2006, the Company's balance sheet showed US$665.392 million, US$193.251 million in total liabilities, US$6.025 million in minority interest, and US$466.116 million in total shareholders' equity. Full-text copies of the Company's first fiscal quarter financials are available for free at http://ResearchArchives.com/t/s?157c Headquartered in Waterloo, Ontario, Open Text Corp. (NASDAQ: OTEX, TSX: OTC) -- http://www.opentext.com/-- provides Enterprise Content Management solutions that bring together people, processes and information in global organizations. The company supports around 20 million seats across 13,000 deployments in 114 countries and 12 languages worldwide. In Europe, the company is headquartered in Grasbrunn, Germany. * * * As reported in the Troubled Company Reporter on Sept. 18, Moody's Investors Service assigns a first-time Ba3 rating to the senior secured facilities and B1 rating to the corporate family of Open Text Corp. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss-given-default of LGD-2 for the senior secured facilities. Moody's also assigned a SGL-1 speculative grade liquidity rating, reflecting very good liquidity. Moody's said the ratings outlook is stable. As reported in the Troubled Company Reporter on Sept. 12, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to Open Text Corp. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating, with a recovery rating of '2', to the company's proposed US$490 million senior secured bank facility, which consists of a US$75 million five-year revolving credit facility and a US$415 million seven- year term loan B. PROMISE-I MOBILITY: Moody's Rates Class E Notes at (P)Ba1 --------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to the debt issuance of Promise-I Mobility 2006-1 GmbH: -- Super Senior Swap, 89.98% of the total protected notional amount: (P)Aaa; -- Class A+ Floating Rate Credit-linked Notes, 0.02% of the total protected notional amount: (P)Aaa; -- Class A Floating Rate Credit-linked Notes, 2.80% of the total protected notional amount: (P)Aaa; -- Class B Floating Rate Credit-linked Notes, 0.90% of the total protected notional amount; (P)Aa2; -- Class C Floating Rate Credit-linked Notes, 1.50% of the total protected notional amount: (P)A2; -- Class D Floating Rate Credit-linked Notes, 1.95% of the total protected notional amount: (P)Baa2; and -- Class E Floating Rate Credit-linked Notes, 0.45% of the total protected notional amount: (P)Ba1. The Class F Floating Rate Credit-linked Notes, 2.40% of the total protected notional amount, will also be issued. These were not rated by Moody's. The Notes have a scheduled maturity date in March 2015. These provisional ratings address the expected loss posed to investors by the legal final maturity date of the Notes in March 2017. Under this transaction, IKB Deutsche Industriebank AG buys protection against losses incurred on EUR- and non-EUR denominated loans to predominantly German SME borrowers (including syndicated loans and sub-participations as well as real estate lease refinancing and forfeiting) which were granted by IKB pursuant to its credit and collection policies. Protection is bought from Kreditanstalt fuer Wiederaufbau with respect to each tranche. KfW in turn sells credit-linked certificates of indebtedness (Schuldscheine) to the issuer for each mezzanine Class. The initial amount of the reference portfolio is EUR1,699,795,481. However, the pool can be ramped up to the replenishment cap of EUR2.4 billion which is scheduled to be done with the outstanding loans from a clean up call of the Promise I 2000-1 transaction. The initial pool consists of 1009 reference claims belonging to 555 different debtor groups. Replenishment is permitted during the first 4 years of the transaction under the constraint of stringent replenishment criteria such as concentration limits and Moody's CDOROM test. Furthermore, the breach of certain replenishment triggers leads to a temporary suspension or permanent termination of replenishment. However, if suspension trigger breaches are cured, replenishment may resume. Essentially, the replenishment suspension and termination triggers relate to realized losses, defaults and weighted average life of the reference pool. For replenishment the portfolio will have a weighted average IKB rating of at least 2.35. Moody's provisional ratings for Promise-I Mobility 2006-1 GmbH, a German issuer, are based primarily on: (1) the credit quality and debtor composition of the reference pool, for which IKB's credit and collection policies were reviewed and internal ratings mapped to the Moody's scale based on a representative sample of debtors; (2) the Aaa rating of KfW as the Issuer of credit-linked certificates of indebtedness (Schuldscheine) serving as note collateral; (3) the replenishment suspension and termination triggers incorporated in the transaction; (4) the sound legal structure of KfW's established Promise program; and (5) the credit enhancement provided to the notes by the subordination of the more junior tranches. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings represent Moody's preliminary credit opinions only. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating may differ from a provisional rating. A rating is not a recommendation to purchase, sell or invest in any securities. PROMISE XXS: Fitch Rates EUR49.5-Mln Class E Notes at BB -------------------------------------------------------- Fitch Ratings assigned expected ratings to PROMISE XXS 2006-1 GmbH's issue of EUR460.75 million of floating-rate notes: -- EUR250,000 Class A+: AAA; -- EUR179,500,000 Class A: AAA; -- EUR108,000,000 Class B: AA; -- EUR78,500,000 Class C: A; -- EUR45,000,000 Class D: BBB; and -- EUR49,500,000 Class E: BB. The Class F and G notes, totaling EUR45,000,000 and EUR49,500,000 respectively are not rated. The final ratings are contingent upon the receipt of final documents conforming to information already received. The transaction is a partially funded synthetic collateralized debt obligation referencing two sub portfolios, a HVB- and a BA- CA originated portfolio, of German and Austrian small to medium- sized enterprise loans, including promoted loans under programs sponsored by German government-owned credit institutions and Oesterreichische Kontrollbank AG. The transaction provides credit protection on a portfolio amounting to EUR4.5 billion that can be replenished in compliance with a master amortization schedule until November 2011. The transaction is based on KfW's PROMISE program. HVB and BA- CA will buy credit protection in respect of their sub-portfolio from KfW under a loss guarantee. KfW will hedge its exposure under the guarantees, by issuing credit-linked certificates of indebtedness to be bought by the issuer, and by entering into a senior credit default swap. The issuer will hedge itself by issuing credit-linked notes. The expected ratings of the notes are based on the credit quality of the reference portfolio, the credit enhancement, the quality of the collateral, the strength of the swap counterparty and the transaction's sound financial and legal structure. C Credit enhancement for the Class A to E notes is provided by synthetic excess spread and subordination, which is available on a quarterly "use it-or-lose it basis". The synthetic excess spread is calculated based on the performing pool balance. The expected ratings address the timely payment of interest and the ultimate repayment of principal. Replenishments may be conducted on a "not to worsen basis" but will be suspended upon the breach of the replenishment suspension trigger, which refers to the cumulative default ratio exceeding 3.5%. Replenishment criteria include a portfolio weighted average life covenant taking into account replenishments and scheduled amortizations. The notes will be redeemed on a modified pro rata basis, synthetically replicating either a pro rata redemption or a sequential redemption scheme depending on the amount of expected losses at each payment date. Synthetic provisions are built against the amortization of the lower ranking tranches. The modified pro rata redemption switches to a fully sequential redemption if the reference portfolio notional balance has reduced to below 57% or if a sub-pool termination event has been triggered. PROMISE-Z 2001: S&P Assigns Low-B Ratings to Class E Notes ---------------------------------------------------------- Standard & Poor's Ratings Services placed its credit ratings on the class B, C, D, E1, and E2 notes in the German SME CLO transaction Promise-Z 2001-1 PLC on CreditWatch with positive implications. The class A+ and A notes are unaffected by these rating actions. The CreditWatch positive placements follow an initial review of the most recent information on the transaction received by Standard & Poor's. Based on this analysis, the likelihood of a positive rating action in this transaction has increased. Levels of credit enhancement available to the classes of notes placed on CreditWatch positive have significantly increased since closing as amortization has lowered the pool factor to below 50%. "The transaction has built a five-year track record and is performing very well," said credit analyst Viktor Milev. The first-loss piece has shown minimal exhaustion until now. Cumulative realized losses add up to 0.22% of the initial principal balance. The credit protection currently available to the lowest-rated notes exceeds the outstanding nominal amounts of all reference claims in credit event. The transaction has reached the end of the replenishment period and is now amortizing. Mr. Milev added: "We will now carry out a more detailed analysis of the transaction to investigate whether any or all of these notes can attain a higher rating. The results of this review and any changes in the ratings are expected within 60 to 90 days." Ratings List Promise-Z 2001-1 PLC EUR137.25 Million Credit-Linked Notes Class Rating ----- ------ To From -- ---- Ratings Placed On CreditWatch With Positive Implications B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E1 BB/Watch Pos BB E2 BB/Watch Pos BB RALF KOENCKE: Claims Registration Ends December 6 ------------------------------------------------- Creditors of Ralf Koencke KG have until Dec. 6 to register their claims with court-appointed provisional administrator Ralph Buenning. Creditors and other interested parties are encouraged to attend the meeting at 11:20 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 Hanover Hall 226 2nd Floor Office Building Hamburg Avenue 26 30161 Hanover, 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 Hanover opened bankruptcy proceedings against Ralf Koencke KG on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Ralf Koencke KG Goseriede 1-5 30159 Hanover, Germany Attn: Ralf Koencke, Manager Calenberger Esplanade 7 30169 Hanover, Germany The administrator can be contacted at: Ralph Buenning Karl-Wiechert-Avenue 1 c 30625 Hanover, Germany Tel: 0511/554706-0 Fax: 0511/554706-99 RC2 CORP: Earns US$19.4 Million in Third Quarter 2006 ----------------------------------------------------- RC2 Corp. reported US$19.4 million of net income for the third quarter ended Sept. 30, 2006. For the nine months ended Sept. 30, 2006, net income was US$36 million. The results for the third quarter and nine months ended Sept. 30, 2006 include around US$1.0 million and US$3.2 million respectively, in compensation expense for stock options. Results for 2005 do not include compensation expense for stock options. Net income reported for the 2005 third quarter was US$18.3 million. For the nine months ended Sept. 30, 2005, net income was US$35.9 million. Third Quarter Operating Results Net sales for the third quarter increased 12.5% to US$160.5 million compared with US$142.6 million for the third quarter a year ago. Current year third quarter net sales excluding US$0.1 million in net sales from sold and discontinued product lines increased 13.6% compared with third quarter 2005 net sales excluding US$1.4 million in net sales from sold and discontinued product lines. The net sales increase was attributable to increases in the children's toys and infant products categories, partially offset by a decline in the collectible products category. Sales in the children's toys category increased by 28.4%, primarily driven by the Thomas & Friends, John Deere and Bob the Builder toy product lines. Sales in the infant products category increased by 9.0%, primarily driven by The First Years' Take & Toss(R) toddler self-feeding system and Soothie(TM) bottle system and Learning Curve's Lamaze infant toys. As expected, sales in the collectible products category continued to decrease. Gross margin decreased to 47.2% from 48.9% in the prior year quarter. The 2006 third quarter gross margin reflects the impact of a less favorable product and distribution mix and higher product costs, especially in die-cast products, than that experienced in the third quarter of 2005. Selling, general and administrative expenses as a percentage of net sales decreased to 27.3% in the third quarter of 2006 compared with 28.0% in the third quarter of 2005. Selling, general and administrative expenses for the 2006 third quarter include around US$0.9 million in compensation expense for stock options, while results for the 2005 third quarter do not include any compensation expense for stock options. Operating income increased to US$31.7 million from US$30.9 million in the year ago period, but as a percentage of net sales, decreased to 19.8% from 21.7% in the prior year third quarter. Operating income for the quarter ended September 30, 2005 includes US$2.0 million in gain on sale of assets and US$0.6 million in catch-up amortization expense. Excluding the gain on sale of assets, operating income for the quarter ended September 30, 2005 was US$28.9 million or 20.3% of net sales. Year to Date Operating Results Net sales for the nine months ended Sept. 30, 2006 increased 8.3% to US$376.7 million compared with US$347.9 million for the nine months ended Sept. 30, 2005. Current year to date net sales excluding US$0.3 million in net sales from sold and discontinued product lines, increased 9.5% compared with net sales for the nine months ended Sept. 30, 2005 excluding US$4.2 million in net sales from sold and discontinued product lines. The increase was attributable to the sales increases in the children's toys and infant products categories, partially offset by a decline in the collectible products category. Gross margin for the nine months ended Sept. 30, 2006 decreased to 47.2% as compared with 49.3% for the comparable period in 2005, due to a less favorable product and distribution mix and higher product costs, especially in die-cast products. Selling, general and administrative expenses as a percentage of net sales were 31.1% for the first nine months of 2006 as compared with 32.2% for the same period in 2005. Selling, general and administrative expenses for the first nine months of 2006 include around US$3.0 million in compensation expense for stock options and around US$1.0 million in expenses related to litigation involving The First Years which preceded its acquisition by RC2. Operating income decreased to US$59.7 million from US$60.5 million in the year ago period, and as a percentage of net sales, decreased to 15.8% from 17.4% in the prior year first nine months, primarily as a result of the stock option and litigation expenses in the first nine months of 2006. Operating income for the 2005 year to date period also includes around US$2.0 million in gain on the sale of assets and around US$0.6 million in catch-up amortization expense. Operating income for the nine months ended Sept. 30, 2005, excluding the gain on sale of assets, was US$58.6 million or 16.8% of net sales. Cash and Debt As of Sept. 30, 2006, the company's outstanding debt balance was US$58.8 million and its cash balances exceeded US$20 million. The comparable figures at the end of the 2006 second quarter were US$54 million and US$14 million, respectively. Also during the quarter, the company amended its credit facility, reducing its applicable margin on borrowings, modifying the definition of certain cash flow measures to exclude non-cash expense related to equity awards and adding an accordion borrowing element. Under the amended facility the company has additional borrowing capacity of US$75.0 million. The company expects to reduce outstanding debt in the fourth quarter of 2006 and in the first quarter of 2007. Curt Stoelting, chief executive officer of RC2 commented, "We are very pleased with our third quarter results and our performance through the first nine months of 2006. In the seasonally high third quarter, our teams introduced new products and expanded distribution for our key product lines which delivered a comparable increase of over 10% in sales and profits. These results reflect our commitment to profitable organic growth despite declining sales in the collectible products category and product cost increases, especially in our die-cast products." "In the fourth quarter, we expect that die-cast products will continue to put downward pressure on our gross margins. We are encouraged by recent declines in petroleum prices but remain concerned about increasing inflation in China, which continues to pressure our product costs. We remain focused on continuing our efforts to maintain and improve our margins by optimizing product development efforts and supply chain costs while eliminating low-performing products and reducing investment in low-growth product lines." Mr. Stoelting concluded, "We are well-positioned for 2007. We have noted very positive customer reactions to our 2007 product lines including the new products that we debuted at the American International Fall Toy Show in New York. We remain confident in our long-term strategy and business model, which is focused on introducing new products based upon consumer insights. We are building a growing portfolio of branded product lines, which provide stability in our earnings and cash flow and allow us the opportunity to achieve sustainable organic growth. Our strong balance sheet gives us financial flexibility to expand our business and create value for our shareholders." Financial Outlook The 2006 outlook remains the same as presented throughout the year. Net sales for 2005 excluding sold and discontinued product lines totaled US$499.7 million. From this base level of 2005 net sales, the company has experienced continued sales growth in 2006. Overall sales increases are dependent on a number of factors including continued success and expansion of existing product lines, successful introductions of new products and product lines and renewal of key licenses. Other key factors include seasonality, overall economic conditions including consumer retail spending and shifts in the timing of that spending and the timing and level of retailer orders. Based on current sales and margin estimates, the company currently expects that full year 2006 diluted earnings per share will range from US$2.60 to US$2.70. This amount includes an estimated US$0.12 per diluted share impact of expensing stock options under SFAS 123(R) which took effect Jan. 1, 2006. Pro forma compensation expense for the year ended Dec. 31, 2005 under SFAS 123 (R) would have been around US$2.1 million, net of tax benefit, or around US$0.10 per diluted share, which would have resulted in diluted earnings per share of US$2.37 for 2005. About RC2 Corp. Based in Oak Brook, Illinois, RC2 Corporation (NASDAQ:RCRC) -- http://www.rc2corp.com/-- designs, produces and markets innovative, high-quality toys, collectibles, hobby and infant care products that are targeted to consumers of all ages. RC2's infant and preschool products are marketed under its Learning Curve(R) family of brands, which includes The First Years(R) by Learning Curve and Lamaze brands as well as popular and classic licensed properties such as Thomas & Friends, Bob the Builder, Winnie the Pooh, John Deere, and Sesame Street. RC2 markets its collectible and hobby products under a portfolio of brands including Johnny Lightning(R), Racing Champions(R), Ertl(R), Ertl Collectibles(R), AMT(R), Press Pass(R), JoyRide(R) and JoyRide Studios(R). RC2 reaches its target consumers through multiple channels of distribution supporting more than 25,000 retail outlets throughout North America, Europe, Australia, and Asia Pacific. * * * As reported in the Troubled Company Reporter on Sept. 27, 2006, Moody's Investors Service revised its Ba2 Corporate Family Rating to Ba3 for RC2 Corporation, and held its Ba2 rating on the company's Senior Secured Revolving Credit Facility Due 2008. In addition, Moody's assigned an LGD3 rating to the credit facility, suggesting noteholders will experience a 32% loss in the event of a default. Moody's also held its Ba2 rating on RC2 Corp.'s Senior Secured Term Loan Due 2008, and assigned an LGD3 rating to these notes, suggesting bondholders will experience a 32% loss in the event of a default. SALIX INTERNATIONAL: Claims Registration Ends December 1 -------------------------------------------------------- Creditors of Salix International GmbH have until Dec. 1 to register their claims with court-appointed provisional administrator Gerhard Fichter. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Heilbronn Hall 4 Ground Floor Insolvency Court Rollwagstr. 10a 74072 Heilbronn, 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 Heilbronn opened bankruptcy proceedings against Salix International GmbH on Oct. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Salix International GmbH Attn: Wolfgang Strack, Manager Aspergerstrasse 39 74078 Heilbronn, Germany The administrator can be contacted at: Gerhard Fichter Uhlandstrasse 4 74072 Heilbronn, Germany Tel: 07131/888666 Fax: 07131/888667 SMART SME: Moody's Assigns (P)Ba2 Rating on Class E Notes --------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to five classes of credit-linked notes to be issued by SMART SME CLO 2006-1, LTD.: -- EUR87-million Class A Notes due 2016: (P)Aaa; -- EUR118.9-million Class B Notes due 2016: (P)Aa2; -- EUR45-million Class C Notes due 2016: (P)A2; -- EUR49.3-million Class D Notes due 2016: (P)Baa2; and -- EUR58-million Class E Notes due 2016: (P)Ba2. Moody's has not assigned a provisional rating to the EUR84 million Class F Notes due 2016. Moody's has not assigned a provisional rating to the EUR2,457.8 million Senior Credit Default Swap between Deutsche Bank and the Senior Credit Default Counterparty. In this transaction Deutsche Bank is buying credit protection on a reference portfolio of EUR2.9 billion consisting of loans to SME clients of Deutsche Bank located in Germany, Italy and Spain. The reference portfolio can be replenished from the closing date until the scheduled maturity date in December 2013 unless a termination event has occurred under the Credit Default Swap or a replenishment suspension trigger is breached. Under the transaction DB will enter into two credit default swaps. The Senior Credit Default Swap will be directly between DB and the Senior Credit Default Swap Counterparty. Additionally DB will enter into a Junior Credit Default Swap with the SPV. Under the Senior Credit Default Swap the Senior Swap Counterparty receives from DB the fixed senior swap payments and in return DB would receive the senior swap cash settlement amounts if the Class A Notes were fully written down and additional losses occurred in the reference portfolio. Under the Junior Credit Default Swap, DB will pay fixed payments to the SPV and in return DB will be hedged for losses occurring in the reference portfolio up to an amount equal to the total initial amount of notes issued by the special purpose vehicle subject to losses exceeding the first loss threshold amount, which serves as the first layer of credit enhancement. In order to hedge its obligations under the Junior Credit Default Swap, the SPV issues Class A to Class F Notes and invests the note proceeds in Euro denominated cash deposits. The credit-linked notes will be redeemed in bullet on the scheduled maturity date on a sequential basis taking into account the deferred funding amount, which is equal to the outstanding defaulted amount of the reference portfolio at the scheduled maturity date. Principal allocation on the notes / principal reduction of the notional amount of the Senior Credit Default Swap is fully sequential and the loss allocation is done in full reverse sequential order. According to Moody's, the ratings of the notes are based, inter alia, on these factors: -- the Class A to Class E Notes benefit from the subordination of the respective lower tranches and all classes additionally benefit from the first loss threshold as a first layer of credit enhancement to cover realised losses; -- relatively strong first loss threshold feature which can absorb realised losses up to a maximum of EUR81,200,000; -- the portfolio is well diversified in terms of obligor concentration. The largest reference entity accounts for 0.70%, the top 10 account for 4.64%, the top 20 account for 7.62% and the top 50 account for 14.14% of the reference portfolio amount; -- relatively strong replenishment criteria. Each replenished portfolio must not have a Moody's weighted average rating factor (7 years) higher than 2000, which is almost matching with the weighted average rating factor of the initial portfolio; -- collateral is invested in Euro denominated cash deposits. The cash deposit bank, currently Deutsche Bank (Aa3/P-1), is required to have a A1 and P-1 rating -- at loss of either of the two ratings, the deposit bank will be changed; -- the reference portfolio can be replenished until but excluding the scheduled maturity date in December 2013 (7 years replenishment period), which could potentially change the risk profile of the portfolio. However, this risk is partially mitigated due to relatively tight replenishment suspension triggers and strong replenishment criteria; -- limited amount of default data was made available. Moody's only received historical one year default probabilities per internal rating class for the years 2004 and 2005 for the German portfolio and one rating migration table for the year 2005 for the Spanish portfolio and no such analysis for the Italian portfolio. As Deutsche Bank is using the same masterscale across business lines and across countries, Moody's used the rating mapping in place to derive the default probability of the reference entities in the portfolio; -- the loss definition includes interest accrued and external enforcement costs. The increased potential loss amount is mitigated and incorporated in the analysis as the loss given default data / write-off data, provided by Deutsche Bank takes interest accrued and external enforcement costs into account; -- the portfolio is concentrated in terms of industries. The largest industry makes up 19.49%, the second largest makes up 19.43% and the third largest makes up 13.96% of the reference portfolio amount. Moody's has taken this industry concentration into account by using CDOROM to measure the volatility of the default rate distribution. Additionally portfolio limits are set for the largest industries. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings only represent Moody's preliminary credit opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating may differ from a provisional rating. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. UM-FLIESEN: Claims Registration Ends November 29 ------------------------------------------------ Creditors of UM-Fliesen GmbH have until Nov. 29 to register their claims with court-appointed provisional administrator Hans-W. Goetsch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 20, 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 Wiesbaden E 36 A 3rd Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden, 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 Wiesbaden opened bankruptcy proceedings against UM-Fliesen GmbH on Oct. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: UM-Fliesen GmbH Attn: Uwe Mueller, Manager Siebenstein 4 65510 Huenstetten, Germany The administrator can be contacted at: Hans-W. Goetsch c/o Blersch/Goetsch/Partner Insolvenzverwaltungen Taunusstrasse 7a 65183 Wiesbaden, Germany Tel: 0611/18089-100 Fax: 0611/18089-189 E-mail: mail@bgp-insol.de VEREIN FREESTYLE: Claims Registration Ends November 29 ------------------------------------------------------ Creditors of Verein Freestyle e.V. have until Nov. 29 to register their claims with court-appointed provisional administrator Norbert Kuepper. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Dec. 20, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 4 Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Verein Freestyle e.V. on Oct. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Verein Freestyle e.V. Sperlingsweg 38 33335 Guetersloh, Germany Attn: Andre Landherr, Manager Steinstr. 5 33602 Bielefeld, Germany Wolfgang Hahn, Manager Schoenstr. 116 81543 Munich, Germany The administrator can be contacted at: Dr. Norbert Kuepper Paderborner Str. 11 33415 Verl, Germany ============= H U N G A R Y ============= BORSODCHEM NYRT: Returned Shares Increases Treasury Stock --------------------------------------------------------- BorsodChem Nyrt. informs its investors and other participants of the capital markets that due to developments concerning its Registered Employee Share Ownership Program, the number of the Company's treasury shares changed. Out of the 203,062 shares transferred to the employees' securities accounts in HVB Bank Hungary Zrt.'s custody on Nov. 9, 2005, the Company received back 216 pieces with a value date of Nov. 21, 2006 from employees terminating their employment relations. Following the transaction the number of the Company's treasury shares increased by 216 pieces to 1,192,963. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. ============= I R E L A N D ============= ADVANCED MEDICAL: Sees US$45-Mln Revenue Cut From Product Recall ---------------------------------------------------------------- Advanced Medical Optics Inc. anticipates a financial impact associated with its voluntarily recall of certain eye care product lots and the related manufacturing capacity constraints caused by a production-line issue at its manufacturing plant in China. Advanced Medical expects the recall to reduce revenue for the remainder of 2006 and 2007 by a total of US$40 million to US$45 million. This is due to expected product returns, supply shortages and temporary lost market share, primarily in Japan and Asia Pacific where the vast majority of products produced at the China facility are shipped. As a result, Advanced Medical now expects its 2006 revenue to be between US$985 million and US$1 billion, compared to prior guidance of US$1,010 million to US$1,020 million. For 2007, the company now expects revenue to be in the range of US$1,060 million and US$1,080 million, compared to prior guidance in the range of US$1,080 million and US$1,100 million. Advanced Medical expects to incur charges and costs to complete the recall, remedy the manufacturing issue and restore market share. For the remainder of 2006 and 2007, the company expects these charges and costs to total around US$35 million to US$40 million, which primarily includes inventory writedowns, recall costs, plant costs, freight and logistics costs, as well as anticipated increased marketing expenses. As a result of the change in anticipated revenue and the associated reduction in margin, coupled with recall-related spending for the balance of 2006 and the increased effective tax rate due to reduction of earnings outside the U.S., AMO now expects 2006 adjusted EPS to be between US$1.30 and US$1.40, compared to previous guidance of US$1.85 to US$1.90. For 2007, the company now expects adjusted EPS to be between US$1.85 and US$2.00, compared to prior guidance in the range of US$2.25 to US$2.35. These actions will affect other financial metrics such as adjusted gross margin and adjusted operating margin for 2006 and 2007. AMO will provide updated guidance on these measures in future communications. The company commenced the voluntary recall because of a production-line issue at its manufacturing plant in China, which could affect the sterility of the product. Of the 2.9 million units being recalled, only 183,000 units were shipped to the U.S. and the remainder was shipped to Asia Pacific and Japan. "This is a production-line issue and is not related to our formulations, which have been used safely by contact lens wearers for years," said Jim Mazzo, AMO chairman, president and chief executive officer. "While we believe the likelihood of patients experiencing an adverse reaction is low based on our investigation to date, we are implementing this voluntary recall as a precautionary measure. While this issue is limited to two of the four production lines in the China facility, we have temporarily ceased all manufacturing there to clean and sanitize the plant. We want to be abundantly certain that eye care practitioners and their patients know they can continue to rely on and trust AMO for products that meet high quality standards. We are working aggressively to replace recalled product and minimize the inconvenience this action may cause." AMO plans to extend the time period of the temporary plant closure in order to move forward a previously disclosed plan to expand manufacturing capacity at the China facility. These plans include adding new filling lines and increasing packaging capacity. The company expects production at the China facility to be suspended for around 10 to 12 weeks. Operations at the company's eye care facility in Alcobendas, Spain are unaffected by this action and production continues uninterrupted. None of the recalled products were manufactured at the Spain facility, which is the primarily supplier for the U.S. and European markets. For the first nine months of 2006, AMO's eye care sales were US$208.6 million and represented around 28 percent of total sales. The company's largest eye care markets are the Americas and Europe, which represented 34% and 28% of total eye care sales, respectively, for the first nine months of 2006. For this same period, Japan and Asia Pacific eye care sales were 24 percent and 14 percent of total eye care sales. About Advanced Medical Optics Based in Santa Ana, California, Advanced Medical Optics, Inc. (NYSE: EYE) -- http://wwwamo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs around 3,600 worldwide. The company has operations in 24 countries and markets products in 60 countries. In Europe, the company maintains operations in Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. * * * In October 2006, Fitch simultaneously affirmed and withdrew its ratings for Advanced Medical Optics Inc. Affected ratings include the company's 'B+' Issuer Default Rating and 'BB+/RR1' Senior Secured Credit Facility Rating. Additionally, Moody's Investors Service confirmed its B1 Corporate Family Rating for Advanced Medical Optics in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. ELAN CORP: Completes US$615 Million Senior Notes Offering --------------------------------------------------------- Elan Corp. plc reveals that its wholly owned subsidiaries, Elan Finance public limited company and Elan Finance Corp., have completed the previously announced offering of US$615 million aggregate principal amount of Senior Notes. The Senior Notes consist of US$465 million aggregate principal amount of 8.875% Senior Fixed Rate Notes due 2013 and US$150 million aggregate principal amount of Senior Floating Rate Notes due 2013. The Senior Floating Rate Notes bear interest at a rate, adjusted quarterly, equal to three-month LIBOR plus 4.125%. Elan and certain of Elan's subsidiaries guarantee the Senior Notes. The Senior Notes were sold to investors at a price of 100% of principal amount. The Senior Notes were offered in the United States, only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in accordance with Regulation S under the Securities Act. Elan expects to, through its wholly owned subsidiary Elan Capital Corp. Ltd., issue a redemption notice for the outstanding US$254 million aggregate principal amount of 6.5% Convertible Guaranteed Notes due 2008 issued by Elan Capital Corp. Ltd. and guaranteed by Elan. The net proceeds from the offering are expected to be used to repay any Convertible Notes not converted into equity of Elan (at a conversion price of US$7.42 per share) prior to the redemption date and the remaining net proceeds are expected to be used to repay all or a portion of the outstanding US$613 million aggregate principal amount of 7.25% Guaranteed Senior Notes due 2008 issued by Athena Neurosciences Finance, LLC, a wholly-owned subsidiary of Elan, and guaranteed by Elan, in each case, within 90 days of the date hereof. The Senior Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States or to U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * As reported in the TCR-Europe on Nov. 13, Standard & Poor's Ratings Services assigned its 'B' rating to Elan Finance plc's proposed offering of US$500 million senior unsecured notes due 2013, to be issued in a combination of fixed and floating-rate notes. Elan Finance plc is a wholly owned subsidiary of Dublin, Ireland-based specialty pharmaceutical company Elan Corp. plc. The notes are guaranteed on a senior unsecured basis by Elan and all of its existing material subsidiaries. Outstanding ratings on Elan (including the 'B' corporate credit rating) and its related entities were affirmed. The ratings outlook is stable. Also, Moody's Investors Service assigned a B3 rating to the proposed new senior unsecured notes of Elan Finance plc reflecting a guarantee from Elan Corporation plc and material subsidiaries. At the same time, Moody's affirmed Elan's existing ratings (B3 Corporate Family Rating) and the stable rating outlook. The rating outlook is stable. Rating assigned: Elan Finance plc * B3 fixed rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) Ratings affirmed: Elan Corporation, plc * B3 corporate family rating Elan Finance plc * B3 fixed rate senior notes of US$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) * B3 floating rate senior notes of US$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) Athena Neurosciences Finance, LLC * B3 senior notes of US$613 million due 2008 (guaranteed by Elan Corporation, plc and subsidiaries) Moody's does not rate Elan's US$254 million convertible notes due 2008. ENTRY FUNDING: Moody's Puts Low-B Ratings on EUR16-Million Notes ---------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings in respect of the notes to be issued by Entry Funding No.1 plc: -- EUR358,500,000 Class A Floating Rate Asset Backed Notes: (P)Aaa; -- EUR8,000,000 Class B Floating Rate Asset Backed Notes: (P)Aa2; -- EUR8,000,000 Class C Floating Rate Asset Backed Notes: (P)A1; -- EUR10,000,000 the Class D Floating Rate Asset Backed Notes: (P)Baa1; -- EUR11,000,000 the Class E Floating Rate Asset Backed Notes: (P)Ba2; and -- EUR5,000,000 the Class F Floating Rate Asset Backed Notes: (P)B2; The ratings address the expected loss posed to investors by the legal final maturity in September 2013. The portfolio comprises loan receivables governed by German law and denominated in EUR. The debtors are German small to medium sized companies. The loan receivables provide for repayment either in fixed quarterly installments or in one single amount at maturity. Fixed and floating interest payments respectively are made quarterly in arrears. Generally, the loan receivables are not secured by any collateral. In case insolvency proceedings are opened against a debtor, Entry would rank just pari passu to other senior unsecured creditors of such debtor. Overall, the portfolio consists of 273 loan receivables owed by 244 debtors. Entry, the issuer, incorporated in Ireland as a limited liability company, will issue six classes of rated Notes: Class A, Class B, Class C, Class D, Class E and Class F Notes. The Notes have quarterly interest payment dates and will pay a margin over 3 months EURIBOR. The interest rate mismatch between fixed rate portfolio assets and floating rate liabilities will be hedged using an interest rate swap. All classes are expected to mature on the date falling around five years after the issue date (which is in September 2011). In case not all Notes are redeemed in full on the expected maturity date, the maturity of the Notes will extend until the legal maturity in September 2013. Moody's issues provisional 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 provisional rating. ========= I T A L Y ========= SMART SME: Moody's Assigns (P)Ba2 Rating on Class E Notes --------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to five classes of credit-linked notes to be issued by SMART SME CLO 2006-1, LTD.: -- EUR87-million Class A Notes due 2016: (P)Aaa; -- EUR118.9-million Class B Notes due 2016: (P)Aa2; -- EUR45-million Class C Notes due 2016: (P)A2; -- EUR49.3-million Class D Notes due 2016: (P)Baa2; and -- EUR58-million Class E Notes due 2016: (P)Ba2. Moody's has not assigned a provisional rating to the EUR84 million Class F Notes due 2016. Moody's has not assigned a provisional rating to the EUR2,457.8 million Senior Credit Default Swap between Deutsche Bank and the Senior Credit Default Counterparty. In this transaction Deutsche Bank is buying credit protection on a reference portfolio of EUR2.9 billion consisting of loans to SME clients of Deutsche Bank located in Germany, Italy and Spain. The reference portfolio can be replenished from the closing date until the scheduled maturity date in December 2013 unless a termination event has occurred under the Credit Default Swap or a replenishment suspension trigger is breached. Under the transaction DB will enter into two credit default swaps. The Senior Credit Default Swap will be directly between DB and the Senior Credit Default Swap Counterparty. Additionally DB will enter into a Junior Credit Default Swap with the SPV. Under the Senior Credit Default Swap the Senior Swap Counterparty receives from DB the fixed senior swap payments and in return DB would receive the senior swap cash settlement amounts if the Class A Notes were fully written down and additional losses occurred in the reference portfolio. Under the Junior Credit Default Swap, DB will pay fixed payments to the SPV and in return DB will be hedged for losses occurring in the reference portfolio up to an amount equal to the total initial amount of notes issued by the special purpose vehicle subject to losses exceeding the first loss threshold amount, which serves as the first layer of credit enhancement. In order to hedge its obligations under the Junior Credit Default Swap, the SPV issues Class A to Class F Notes and invests the note proceeds in Euro denominated cash deposits. The credit-linked notes will be redeemed in bullet on the scheduled maturity date on a sequential basis taking into account the deferred funding amount, which is equal to the outstanding defaulted amount of the reference portfolio at the scheduled maturity date. Principal allocation on the notes / principal reduction of the notional amount of the Senior Credit Default Swap is fully sequential and the loss allocation is done in full reverse sequential order. According to Moody's, the ratings of the notes are based, inter alia, on these factors: -- the Class A to Class E Notes benefit from the subordination of the respective lower tranches and all classes additionally benefit from the first loss threshold as a first layer of credit enhancement to cover realised losses; -- relatively strong first loss threshold feature which can absorb realised losses up to a maximum of EUR81,200,000; -- the portfolio is well diversified in terms of obligor concentration. The largest reference entity accounts for 0.70%, the top 10 account for 4.64%, the top 20 account for 7.62% and the top 50 account for 14.14% of the reference portfolio amount; -- relatively strong replenishment criteria. Each replenished portfolio must not have a Moody's weighted average rating factor (7 years) higher than 2000, which is almost matching with the weighted average rating factor of the initial portfolio; -- collateral is invested in Euro denominated cash deposits. The cash deposit bank, currently Deutsche Bank (Aa3/P-1), is required to have a A1 and P-1 rating -- at loss of either of the two ratings, the deposit bank will be changed; -- the reference portfolio can be replenished until but excluding the scheduled maturity date in December 2013 (7 years replenishment period), which could potentially change the risk profile of the portfolio. However, this risk is partially mitigated due to relatively tight replenishment suspension triggers and strong replenishment criteria; -- limited amount of default data was made available. Moody's only received historical one year default probabilities per internal rating class for the years 2004 and 2005 for the German portfolio and one rating migration table for the year 2005 for the Spanish portfolio and no such analysis for the Italian portfolio. As Deutsche Bank is using the same masterscale across business lines and across countries, Moody's used the rating mapping in place to derive the default probability of the reference entities in the portfolio; -- the loss definition includes interest accrued and external enforcement costs. The increased potential loss amount is mitigated and incorporated in the analysis as the loss given default data / write-off data, provided by Deutsche Bank takes interest accrued and external enforcement costs into account; -- the portfolio is concentrated in terms of industries. The largest industry makes up 19.49%, the second largest makes up 19.43% and the third largest makes up 13.96% of the reference portfolio amount. Moody's has taken this industry concentration into account by using CDOROM to measure the volatility of the default rate distribution. Additionally portfolio limits are set for the largest industries. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings only represent Moody's preliminary credit opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A definitive rating may differ from a provisional rating. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. =================== K A Z A K H S T A N =================== ATAMEKEN-2030 LLP: Akmola Court Opens Bankruptcy Proceedings ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Atameken-2030 on Oct. 6. AVTOSPHERASNAB LLP: Creditors Must File Claims by Dec. 22 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Avtospherasnab insolvent on Sept. 27. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Avtospherasnab Office 225 Maulenov Str. 92 Almaty, Kazakhstan Tel: 8 701 713 29-75 ERNA SERVICE: Claims Filing Period Ends Dec. 22 ----------------------------------------------- LLP Erna Service has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Erna Service Micro District 2-88 Kulsary Atyrau Region Kazakhstan KAZ BEEF: Proof of Claim Deadline Slated for Dec. 22 ---------------------------------------------------- LLP Kaz Beef has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Kaz Beef Office 503/1 Makataev Str. 47 Almaty, Kazakhstan LACORTE-PETROPAVLOVSK: Creditors' Claims Due Dec. 22 ---------------------------------------------------- LLP Lacorte-Petropavlovsk has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Lacorte-Petropavlovsk Mir Str. 252 Petropavlovsk North Kazakhstan Region Kazakhstan MEN-A LLP: Akmola Court Begins Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region commenced bankruptcy proceedings against LLP Men-a on Oct. 6. TABYS JSC: Proof of Claim Deadline Slated for Dec. 22 ----------------------------------------------------- JSC Company on Management of Investment Portfolio Tabys has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: JSC Tabys Office 205 Dostyk Ave. 240 Almaty, Kazakhstan TAIMAS LLP: Claims Filing Period Ends Dec. 22 --------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Taimas insolvent on Aug. 29. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Taimas Ulbike akyn Str. 124/10 Taraz Jambyl Region Kazakhstan Tel/Fax: 8 (3262) 34-53-1 TRANS EXPRESS: Proof of Claim Deadline Slated for Dec. 22 --------------------------------------------------------- LLP Trans Express has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Trans Express Rayimbek Str. 160a Almaty, Kazakhstan VAGONOREMONTNY ZAVOD: Court Starts Bankruptcy Procedure ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceeding against State Utility Enterprise Aralsky Railway-Carriage Repair Works Vagonoremontny Zavod on Oct. 6. =================== K Y R G Y Z S T A N =================== KYRGYZRAZNOOPTORG JSC: Public Auction Scheduled for Dec. 18 ----------------------------------------------------------- The Leninsky Regional Subdivision Service of the Court Officers of Bishkek will auction JSC Kyrgyzraznooptorg's non-residential premises to the public at 10:00 a.m. on Dec. 18 at: Tolstoi Str. 39 Bishkek, Kyrgyzstan The asset for sale is located at: Tolstoi Str. 39 Bishkek, Kyrgyzstan The property has a total area of 13,620 square meters. The entity has declared a KGS4,488,300 starting price for the property. Interested bidders have until Dec. 17 to deposit an amount equivalent to 5% of the starting price of the lot to: Settlement Account No. 1020002080100155 Personal Account No. 205802444 BIK 102202 Leninsky Regional Court of Bishkek Leninskoye Department of OJSC Promstroybank Participants may submit their bids at: Tolstoi Str. 39 Bishkek, Kyrgyzstan Tel: (+996 312) 65-12-93 VESTA-TOKMOK LLC: Public Auction Scheduled for Dec. 14 ------------------------------------------------------ The bidding organizer and insolvency manager of LLC Vesta-Tokmok will auction the company's knitting equipment complex to the public at 10:00 a.m. on Dec. 14 at: Ovcharova Str. 39-a Tokmok, Kyrgyzstan The starting price for the property is EUR278,254, which was reduced by 80%. The property is leased to a third person until 2014. Interested bidders have until 2:00 p.m. on Dec. 13 to deposit an amount equivalent to 10% of the starting price to: Settlement Account No. 1020002000271781 Leninsky Department OJSC Kyrgyzpromstroibank MFO 101002 or to the cashier of LLC Vesta-Tokmok. Participants may submit their bids at: Lineinaya Str. 67-58 Bishkek, Kyrgyzstan Tel: (0-502) 55-11-97 (+996 312) 62-42-04 ===================== N E T H E R L A N D S ===================== HARBOURMASTER CLO 7: Fitch Rates EUR23-Million Notes at BB ---------------------------------------------------------- Fitch Ratings assigned Harbourmaster CLO 7 B.V.'s issue of EUR925 million floating-rate notes due 2022 final ratings. The transaction, a European arbitrage collateralized loan obligation, is a securitization of primarily senior secured loans. -- EUR576 million Class A1 (XS0273833516) floating-rate notes: AAA; -- EUR149 million Class A2 (XS0273887363) floating-rate notes: AAA; -- EUR41 million Class A3 (XS0273889229) floating-rate notes: AA; -- EUR38 million Class A4 (XS0273890664) floating-rate notes: A; -- EUR38 million Class B1 (XS0273891639) floating-rate notes: BBB; -- EUR21 million Class B2 (XS0273893502) floating-rate notes: BB; -- EUR62 million Class C (XS0273894732) subordinated notes: not rated; -- EUR2 million Class S1 (XS0273895200) combination notes: BB; -- EUR5 million Class S2 (XS0273896273) combination notes: AA; -- EUR3 million Class S3 (XS0273896943) combination notes: BBB; -- EUR7 million Class S4 (XS0273897917) combination notes: BBB+; and -- EUR4 million Class S5 (XS0273900992) combination notes: A- The final 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 ratings address ultimate payment of principal and interest, including any deferred interest, at maturity according to the terms of the notes. The ratings on the Class S1, S2, S3 and S5 combination notes address the ultimate payment of principal from funds received on their components, while for the S4 combination notes the rating addresses the ultimate payment of principal and interest at a coupon rate of 0.25% on the outstanding rated balance. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager 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 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 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 ninth 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 are used to purchase a portfolio of primarily European senior secured loans. KONINKLIJKE AHOLD: Albert Heijn Unit to Convert Konmar Stores ------------------------------------------------------------- On Nov. 14, 2006, Koninklijke Ahold N.V. announced that the transfer of nearly all Konmar stores from Laurus to the company had been completed. This signals the go-ahead for Albert Heijn to begin the conversion of 21 of the Konmar stores. Albert Heijn aims to complete these renovations in time for Christmas. Of the original 23 stores that Albert Heijn is to take over from Konmar, two will be transferred to Albert Heijn in first half of 2007. Of the 21 remaining branches, nine are to be converted to Albert Heijn XL stores. The first is due to open in Utrecht on Wednesday November 22, 2006. Alongside these 9 XL stores, Albert Heijn will open 12 local branches, of which four will be franchise stores. That means that two further branches will join the two original Konmar franchise stores to make the total of four Albert Heijn franchises. Once the stores have been renovated, a very wide range of products at an affordable price and the renowned Albert Heijn quality will be available to customers of these stores. Albert Heijn has taken on all former Konmar employees. They are currently being trained and are gaining an extensive acquaintance with Albert Heijn. Sale and Relocation In its approval of the takeover of the stores by Ahold, the NMa stipulated that Albert Heijn must sell off a number of its existing stores that are located in the vicinity of the newly acquired Konmar stores. The sale of these stores will take place in Almere, The Hague (two branches), Maassluis and Zoetermeer. Moreover, in a number of cases there are plans to relocate neighboring Albert Heijn stores to the converted Konmar premises. About Ahold Headquartered in Amsterdam, the Netherlands, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, and Europe. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's have assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. LANCELOT 2006: Fitch Gives BB Rating to EUR12 -Mln Class E Notes ---------------------------------------------------------------- Fitch Ratings assigned expected ratings to Lancelot 2006 B.V.'s upcoming issue of EUR611.76 million floating-rate notes due 2073: -- EUR538.35 million Class A: AAA; -- EUR21.41 million Class B: AA; -- EUR19.88 million Class C: A; -- EUR19.88 million Class D: BBB; and -- EUR12.24 million Class E: BB. The final ratings are contingent on the receipt of final documents conforming to information already received. This is a static cash flow securitization of a pool of commercial mortgage loans granted by F. Van Lanschot Bankiers N.V. to 159 private individuals, small to medium-sized entities and special-purpose vehicles established by SMEs or individuals in the Netherlands. This is the first commercial mortgage- backed SME loan cash securitization to be launched by VLB. The expected ratings are based on the quality of the collateral, available credit enhancement, the financial structure of the transaction, the underwriting and servicing of the collateral and the transaction's legal structure. The expected ratings address timely payment of interest and the repayment of principal by legal final maturity on the Class A to D notes and the ultimate payment of interest and the repayment of principal by legal final maturity on the Class E notes in accordance with the terms and conditions of the documentation. The mortgage loan receivables are secured by more than 700 commercial real estate properties in the Netherlands and will be sold at the outset by the originator to the issuer. The purpose of the loans is to finance the operations or investments of SMEs, leverage the borrowers' investment property, or achieve favorable tax treatment of borrowers' estates. The transaction benefits from structural protection via a principal deficiency ledger to trap excess margin from the time a loan has defaulted up to its outstanding balance. The issuer is a private company with limited liability incorporated under the laws of the Netherlands. POLYMER GROUP: Weak Performance Spurs S&P to Revise Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Polymer Group Inc. to negative from stable. All ratings, including the 'BB-' corporate credit rating, were affirmed. The outlook revision follows several quarters of weaker-than- expected performance and somewhat higher-than-expected debt primarily due to raw material cost escalation and some product mix shifts. Also contributing to the disappointing results were several one- time items such as: -- costs related to technical problems associated with new equipment (since resolved), -- an acquisition that was not consummated, -- the closing of manufacturing capacity, and -- moving the company's headquarters. "Despite signs that operating results have stabilized, and the potential benefits of new plant investments, we are concerned about the company's ability to return financial measures to levels appropriate for the ratings, particularly given less favorable economic prospects," said Standard & Poor's credit analyst Cynthia Werneth. The ratings on Polymer reflect the company's weak business position as a producer of nonwoven and oriented polyolefin products and its aggressive financial profile. The narrow focus of Polymer's business operations is a limiting factor but is partially offset by the company's leading positions in its niche markets, good geographic sales and manufacturing diversity, favorable long-term growth prospects in certain end markets, and opportunities to increase sales and earnings following several recently completed capacity expansions. With annual revenues of nearly US$1 billion, Charlotte, N.C.-based Polymer manufactures products that are used in a wide range of disposable consumer applications, including baby diapers, feminine hygiene products, household and consumer wipes, disposable medical products, and various industrial applications, including automotive, filtration, and protective apparel. Leading global manufacturers of consumer, medical, and industrial products uses the company's nonwovens. Long-term industry growth rates are favorable and are driven by new applications for nonwovens in developed countries and volume increases in existing products as income levels increase in developing countries. However, recent weakness in auto and housing end markets, as well as lower hygiene product sales in connection with retailer destocking, have caused the company to fill capacity with lower-margin products. Although the retail issue appears to be temporary, auto and housing market weakness are likely to extend into the foreseeable future. =========== N O R W A Y =========== AKER KVAERNER: Inks Drilling Equipment Deal with PPL Shipyard ------------------------------------------------------------- Aker Kvaerner A.S.A. has been awarded a contract with PPL Shipyard Pte Ltd. in Singapore for delivery of drilling equipment for a Baker Marine Pacific Class 375 jack-up drilling rig. The total contract value is around US$15 million. The award is based on a letter of intent signed with PPL Shipyard Pte Ltd. in Singapore, October 2006. The work is undertaken by the Aker Kvaerner subsidiary, Aker Kvaerner MH in Kristiansand. The scope of work for Aker Kvaerner MH is to deliver drilling equipment as well as engineering and commissioning services. The jack-up drilling rig is scheduled for delivery at the end of 2008. The drilling rig will be designed for worldwide operation. "This award confirms not only Aker Kvaerner's performance and close cooperation with PPL Shipyard Pte Ltd on similar projects, but also Aker Kvaerner MH's established position as a leading supplier in the world-wide offshore drilling equipment segment," Roald Amundsen, President of Aker Kvaerner MH, said. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. AKER KVAERNER: Unveils Financial Calendar for 2007 -------------------------------------------------- Aker Kvaerner ASA expects to publish its financial statements for the fourth quarter of 2006 on Feb. 13, 2007, along with its preliminary Annual Result for the fiscal year ended 2006. The company's financial calendar for 2007 also shows: Event Schedule ----- -------- Annual General Meeting March 29, 2007 First Quarter Results 2007 April 25, 2007 Second Quarter Results 2007 Aug. 2, 2007 Third Quarter Results 2007 Oct. 23, 2007 Capital Markets Day Nov. 30, 2007 Dates may be subject to change. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. =========== P O L A N D =========== AUTOCAM CORP: Possible Non-Payment Cues S&P to Junk Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Kentwood, Mich.-based Autocam to 'CC' from 'CCC+' and placed the ratings on CreditWatch with negative implications. S&P also lowered the ratings on the company's senior secured bank facilities to 'CC' from 'CCC+' and the senior subordinated notes to 'C' from 'CCC-'. These actions followed Autocam's statements, in its recent 10-Q filing with the SEC, that it may be unable to meet its Dec. 15, 2006, interest payment on its US$140 million senior subordinated notes, that it is engaged in restructuring discussions with holders of its senior subordinated notes regarding a possible equity swap, that it does not expect to be in compliance with financial covenants on its senior credit facilities and second-lien credit facility as of Dec. 31, 2006, and that it is seeking to amend its senior first-lien credit facilities and its second-lien credit facility to provide covenant relief. Autocam is exploring various options to improve liquidity, including selling assets and securing other sources of capital. The company's balance sheet debt as of Sept. 30, 2006, totaled US$320 million. "We would lower the ratings further if the company fails to meet its contractual debt obligations," said Standard & Poor's credit analyst Nancy Messer. "The downgrades reflect Autocam's istressed financial situation and the increasing possibility that the company will be forced to restructure in the near term. We believe it is unlikely that the company will be able to secure alternative financing in the absence of waivers for its current covenants or incremental liquidity from its equity sponsors, because of its very high debt leverage and weak operating results." BORSODCHEM NYRT: Returned Shares Increases Treasury Stock --------------------------------------------------------- BorsodChem Nyrt. informs its investors and other participants of the capital markets that due to developments concerning its Registered Employee Share Ownership Program, the number of the Company's treasury shares changed. Out of the 203,062 shares transferred to the employees' securities accounts in HVB Bank Hungary Zrt.'s custody on Nov. 9, 2005, the Company received back 216 pieces with a value date of Nov. 21, 2006 from employees terminating their employment relations. Following the transaction the number of the Company's treasury shares increased by 216 pieces to 1,192,963. About BorsodChem Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. -- http://www.borsodchem.hu/-- produces chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC resins, and additives for the plastic and rubber industries. The Company exports its products mainly to Western Europe. The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7% higher than HUF20.5 billion in 2004. BorsodChem's net profit was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year ago. At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9 billion in total assets, HUF98.9 billion in total liabilities and HUF139.02 billion in total equity. * * * The Company's long-term foreign and local issuer credit carry Standard and Poor's BB rating with stable outlook. =========== R U S S I A =========== AGRO-PROM-KHIMIYA: Court Names I. Borzov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Ivanovo Region appointed Mr. I. Borzov as Insolvency Manager for OJSC Agro-Prom-Khimiya (TIN 3718001430). He can be reached at: I. Borzov Office 207 Bagaeva Str. 17 153000 Ivanovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17-1434/06-1-B. The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: OJSC Agro-Prom-Khimiya Gagarina Str. 68 Pestyaki Ivanovo Region Russia AVNYUGSKIY WOOD-PROM-KHOZ: Bankruptcy Hearing Slated for Jan. 15 ---------------------------------------------------------------- The Arbitration Court of Arkhangelsk Region will convene on Jan. 15, 2007, to hear the bankruptcy supervision procedure on OJSC Avnyugskiy Wood-Prom-Khoz. The case is docketed under Case No. A05-7100/2006-28. The Temporary Insolvency Manager is: A. Galin Post User Box 14 Kotlas 165300 Arkhangelsk Region Russia The Arbitration Court of Arkhangelsk Region is located at: Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: OJSC Avnyugskiy Wood-Prom-Khoz Avnyugskiy Verkhnetoemskiy Region 165511 Arkhangelsk Region Russia BSPB FINANCE: Fitch Assigns B/RR4 Ratings to US$125-Mln Notes ------------------------------------------------------------- Fitch Ratings assigned BSPB Finance PLC's US$125 million 9.501% issue of limited recourse loan participation notes due 2009 final ratings of Recovery RR4 and Long-term B. The notes are to be used solely for financing a loan to Russia- based Bank Saint Petersburg, which is rated Issuer Default B with Stable Outlook, Short-term B, Individual D, and Support 5. BSP is a mid-sized Russian bank with a large presence in St. Petersburg and the surrounding region. The franchise is currently focused primarily on serving local corporates, in part by leveraging a close relationship with the St. Petersburg City administration, although retail lending is also targeted to grow. The bank is ultimately controlled by senior management, including the Chairman, Alexander Saveliev, with most of the remainder owned by two groups of local investors. CBOM FINANCE: Fitch Assigns B- Rating on US$100-Mln Eurobond ------------------------------------------------------------ Fitch Ratings assigned CBOM Finance Plc's US$100 million 9.5% issue of limited recourse loan participation notes due 2009 with interest step-up to 10.25% in 2007 final Recovery Rating RR4 and Long-term B- ratings. The notes are to be used solely for financing a loan to Russia's Credit Bank of Moscow, which is rated Issuer Default B-, Short- term B, Individual D, Support 5 and National Long-term BB+. The Outlooks on both the Issuer Default and the National Long-term ratings are Positive. CBOM was ranked the 57th-largest Russian bank by total assets at end-H106. Its core business lies in providing banking services to medium-sized trading companies and also retail customers in Moscow and the Moscow region. FLAX FACTORY: Court Names S. Lebedev as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Mr. S. Lebedev as Insolvency Manager for OJSC Flax Factory. He can be reached at: S. Lebedev Flax Factory Toguchinskiy Region Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-15565/06-10/322. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: OJSC Flax Factory Flax Factory Toguchinskiy Region Novosibirsk Region Russia INVESTMENTS AND SECURITIES: Names A. Koshechkov to Manage Assets ---------------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. A. Koshechkov as Insolvency Manager for LLC Investments and Securities. He can be reached at: A. Koshechkov Vorkutinskaya 14-76 Vologda Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-14200/06-123-60B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: A. Koshechkov Vorkutinskaya 14-76 Vologda Region Russia KHARANUTSKIY COAL: Court Names K. Sobolev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Mr. K. Sobolev as Insolvency Manager for OJSC Kharanutskiy Coal Open Cast. He can be reached at: K. Sobolev Post User Box 176 664011 Irkutsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-12743/06-29. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: OJSC Kharanutskiy Coal Open Cast Dzerzhinskogo Str. 1 664003 Irkutsk Region Russia PROKOPYEVSKIY FACTORY: Bankruptcy Hearing Slated for Feb. 28 ------------------------------------------------------------ The Arbitration Court of Kemerovo Region will convene at 10:30 a.m. on Feb. 28, 2007, to hear the bankruptcy supervision procedure on LLC Prokopyevskiy Factory of Rubber Goods. The case is docketed under Case No. A27-14836/2006-4. The Temporary Insolvency Manager is: A. Samokhin Lugovaya Str. 18 Prokopyevsk 653033 Kemerovo Region Russia The Arbitration Court of Kemerovo Region is located at: Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: LLC Prokopyevskiy Factory Of Rubber Goods Lugovaya Str. 18 Prokopyevsk 653033 Kemerovo Region Russia NATUKHAEVSKAYA CJSC: Bankruptcy Hearing Slated for Mar. 5 --------------------------------------------------------- The Arbitration Court of Novorosiiysk Region will convene on Mar. 5, 2007, to hear the bankruptcy supervision procedure on CJSC Agricultural Company Natukhaevskaya. The case is docketed under Case No. A-32-19066/2006-46/1463-B. The Temporary Insolvency Manager is: D. Sukhorukov Apartment 15 Marksa Str. 25 353900 Novorosiiysk Region Russia The Debtor can be reached at: CJSC Agricultural Company Natukhaevskaya Krasnaya Str. 67 Natukhaevskaya St. Novorosiiysk Region Russia NOVOPAVLOVSKOYE AGRO: Bankruptcy Hearing Slated for Jan. 22 ----------------------------------------------------------- The Arbitration Court of Krasnodar Region will convene at 2:30 p.m. on Jan. 22, 2007, to hear the bankruptcy supervision procedure on OJSC Novopavlovskoye Agro. The case is docketed under Case No. A 32-17000/2006-1/1006 B. The Temporary Insolvency Manager is: G. Umarova Uralskaya Str. 134 350059 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Novopavlovskoye Agro Novopavlovka Beloglinskiy Region Krasnodar Region Russia SAMUSKIY FACTORY: Court Names S. Lizunov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Tomsk Region appointed Mr. S. Lizunov as Insolvency Manager for CJSC Samuskiy Factory. He can be reached at: S. Lizunov Govorova Str. 1A 634057 Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7504/06. The Debtor can be reached at: CJSC Samuskiy Factory Lenina Str. 21 Samus Tomsk Region Russia SEVESTRA CJSC: Court Names S. Lizunov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Tomsk Region appointed Mr. S. Lizunov as Insolvency Manager for CJSC Insurance Company Sevestra. He can be reached at: S. Lizunov Govorova Str. 1A 634057 Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7491/06. The Debtor can be reached at: CJSC Insurance Company Sevestra Kurchatova Str. 2-510 Seversk Tomsk Region Russia SILIKANYJ FACTORY: Court Names V. Togmitov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Buryatiya Republic appointed Mr. V. Togmitov as Insolvency Manager for OJSC Silikanyj Factory. He can be reached at: V. Togmitov Room 300 Solnechnaya Str. 7a Ulan-Ude 670031 Buryatiya Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10-1467/03. The Arbitration Court of Buryatiya Republic is located at: Kommunisticheskaya Str. 51 Ulan-Ude Russia The Debtor can be reached at: OJSC Silikanyj Factory Silikatnyj Ulan-Ude 670031 Buryatiya Republic Russia SLADKOVSKOYE CJSC: Court Starts External Bankruptcy Process ----------------------------------------------------------- The Arbitration Court of Krasnodar Region commenced external management bankruptcy procedure on CJSC Sladkovskoye. The case is docketed under Case No. A-32-1431/05-38/755-B. The External Insolvency Manager is: D. Khomutov Post User Box 3477 350001 Krasnodar Region Russia The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: CJSC Sladkovskoye Zelenaya Str. 13 A Tselinnyj Slavyanskiy Region 353584 Krasnodar Region Russia STROY-MONTAGE-3: Court Names S. Lebedev as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Novosibirsk Region appointed Mr. S. Lebedev as Insolvency Manager for CJSC Stroy-Montage-3. He can be reached at: S. Lebedev Office 7 Kamenskaya 64a Novosibirsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-15057/06-10/311. The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Stroy-Montage-3 Ivanova 32-b7 Novosibirsk Region Russia VIMPEL-COMMUNICATIONS: Moscow Court Finalizes UKS Acquisition ------------------------------------------------------------- The Moscow Arbitration Court upheld the validity of the transaction on Open Joint Stock Company Vimpel-Communications' acquisition of CJSC Ukrainian Radio Systems, dismissing the third claim filed by Telenor East Invest AS which challenged the transaction's validity. VimpelCom is pleased by the dismissal and by the fact that the two other claims filed by Telenor East Invest AS challenging the validity of the acquisition of URS have also been dismissed by the trial courts hearing each claim and on all appeals heard to date. 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. VIMPEL-COMMUNICATIONS: To Unveil Nine-Month Results on Nov. 30 -------------------------------------------------------------- OJSC Vimpel-Communications will release its 2006 third quarter and nine-month financial and operating results on Nov. 30, 2006. The company will hold conference call and slide presentation of the results at 6:30 p.m. Moscow time on the same date. Alexander Izosimov, Chief Executive Officer, will host the conference call. Joining the conference call are: -- Elena Shmatova, Chief Financial Officer, -- Nikolay Pryanishnikov, Executive Vice President-General Director, Regions; -- Kent McNeley, Chief Marketing Officer, and -- Valery Goldin, Vice President of International and Investor Relations. The call and slide presentation may be accessed via Webcast at: http://www.vimpelcom.com/ 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. VNESHTORGBANK JSC: Launches Vietnam-Russia Joint Venture Bank ------------------------------------------------------------- Vietnam-Russia Joint Venture Bank officially opened on Nov. 19, 2006 in the presence of Vladimir Putin, President of Russia, and Nguyen Minh Triet, President of the Socialist Republic of Vietnam. VRB is a joint venture of JSC Vneshtorgbank (VTB Bank) and the Bank for Investment and Development of Vietnam (BIDV). The capital of a new financial institution amounts to US$10 million, 51% stake is owned by BIDV and 49% is acquired by VTB. The key business activities of VRB will be project finance, export- import finance, lending to Russian enterprises operating in Vietnam, and international settlements (Russia-Vietnam). VRB will become the first Russian bank in Vietnam. "A bank of such type is sure to further enhance bilateral trade and economic relations; it will make trade settlements between the two countries more accessible and facilitate implementing large joint projects in Vietnam with the participation of Russian capital," Andrey Kostin, VTB's CEO and Chairman, said. "The VTB Group, a leading international financial holding in Russia, is striving to expand its business in the countries of the Asian-Pacific region and the establishment of VRB has become a benchmark to accomplish these tasks." A fundamental decision to set up Vietnam-Russia Joint Venture Bank was made within the framework of an official visit of Russian Prime Minister Mikhail Fradkov to Vietnam from Feb. 15- 17, 2006. The Memorandum of establishing the bank was signed at the 5th meeting of Vietnam-Russia task force on interbank cooperation, which took place in Danang in May 2006. The signing of the bank's constituent document took place on Aug. 31, 2006, during a visit of Vietnamese representatives to Moscow. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. ZAVODOUKOVSKIY LLC: Bankruptcy Hearing Slated for Dec. 28 --------------------------------------------------------- The Arbitration Court of Tyumen Region will convene on Dec. 28 to hear the bankruptcy supervision procedure on LLC Bakery Zavodoukovskiy. The case is docketed under Case No. A-70-7106/3-05. The Temporary Insolvency Manager is: V. Vinogradov 50 Let Profsoyuzov Str. 61 644065 Omsk Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: LLC Bakery Zavodoukovskiy Shosseynaya Str. 156 Zavodoukovsk 627141 Tyumen Region Russia ========= S P A I N ========= BANKINTER 13: Moody's Junks EUR20.6-Million Series E Notes ---------------------------------------------------------- Moody's Investors Service assigned definitive credit ratings to six series of Bonos de Titulizacion Hipotecaria to be issued by Bankinter 13 Fondo De Titulizacion De Activos, a Spanish Asset Securitisation Fund that has been created by Europea de Titulizacion, S.G.F.T, S.A. Moody's has assigned these ratings: -- EUR85 million Series A1 notes: Aaa; -- EUR1,397.4 million Series A2 notes: Aaa; -- EUR22.4 million Series B notes: Aa3; -- EUR24.1 million Series C notes: A3; -- EUR20.5 million Series D notes: Ba1; and -- EUR20.6 million Series E notes: Ca. The ratings address the expected loss posed to investors by the legal final maturity (17 July 2049). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Series A1, A2, B, C and D at par on or before the rated final legal maturity date, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Series E. According to Moody's, this deal benefits from strong features, including: (1) basis swap by which the index reference rates on the assets (12M Euribor) are exchanged against the index reference rate on the notes (3MEuribor); (2) a reserve fund that is fully funded upfront to cover a potential shortfall in interest and principal; (3) an 18-month artificial write-off mechanism; (4) the securing of 100% of loans by residential mortgages; and (5) the quality of Bankinter as originator and servicer. However, Moody's notes that the deal also has weaknesses, including: (1) excess spread is very tight; (2) Pro-rata amortisation of the B, C and D Series of notes leads to reduced credit enhancement of the senior class in absolute terms; (3) around 12.5% of the pool is comprised of second lien mortgage loans; (4) and this portfolio has some high LTV mortgage loans within it (23.14% of the portfolio consists of mortgage loans with an LT higher than 80%). These increased risks were reflected in Moody's Credit Enhancement calculation. This transaction marks the thirteenth time that Bankinter has tapped the RMBS market. The products being securitised are first-lien mortgage loans granted to individuals, all of whom will use these loans to acquire or refurbish properties located in Spain. All of the mortgage loans were originated by Bankinter, which will continue to service them. As of October 28th 2006, the provisional portfolio comprised 12,198 loans for a total amount of EUR1,646,990,741. The original weighted average LTV (WALTV) is 65.89%. The average loan size is EUR135,021. The loans were originated between 2003 and 2006 with a weighted average seasoning of 12.34 months. All the loans are paid through monthly installments, which are debited to accounts held by the debtors at Bankinter. Moody's based its ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance information; (iii) the swap agreement hedging the interest rate risk; (iv) the credit enhancement provided through the GIC account, the guaranteed excess spread, the reserve fund and the subordination of the notes; and (v) the legal and structural integrity of the transaction. 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. FREEPORT-MCMORAN: Purchase Plan Prompts DBRS to Review Ratings -------------------------------------------------------------- Dominion Bond Rating Service placed the rating of Freeport- McMoRan Copper & Gold Inc.'s Senior Notes at BB (low) Under Review with Developing Implications following Freeport's announced offer to acquire all of Phelps Dodge Corporation's common equity in a cash and stock takeover bid of US$25.9 billion. The transaction is expected to close in the first quarter of 2007, subject to shareholder and regulatory approvals. The rating action recognizes the strengthened business profile as a result of the proposed acquisition but also incorporates the uncertainty regarding the rate at which the Company would be able to pay down the around US$16 billion in new debt to fund the cash portion of the acquisition. DBRS notes that the acquisition would strengthen the business profile of the Company as the combined company would benefit from additional operating assets, geographic diversification, scale, development potential and a reduction in its political risk profile. Stand-alone Freeport is currently a one mine company. With the acquisition of Phelps, New Freeport would operate 11 mines -- thus reducing mine operational risk substantially. New Freeport would have operating mines in four countries and a large development project in the Congo. Pro forma 2006 production by geography would be 42% in the United States, 35% in Indonesia, 19% in Chile and 4% in Peru. With around 1.6 million tonnes of copper production for 2006, New Freeport would become the second-largest copper producer in the world -- behind state-owned Corporaci�n Nacional del Cobre de Chile. Phelps' Tenke Fungurume development project is believed to be the largest undeveloped, high-grade copper/cobalt project in the world. The political risk profile of New Freeport would be reduced as production from Indonesia would be reduced from 100% for stand-alone Freeport to less than 40% for the combined companies. However, DBRS also notes that the acquisition would weaken the financial profile of the Company as its leverage would increase substantially. Pro forma total debt for the combined companies would be around US$18 billion, at Sept. 30, 2006. New Freeport's pro forma per cent gross debt-to-capital would be around 64%, up from 33% for stand-alone Freeport at September 30, 2006. New Freeport's pro forma cash flow-to-total debt for the 12 months ended September 30, 2006, would be around 0.3x, down from 1.4x for stand-alone Freeport. The Company has indicated that it would use free cash flow in the next few years to pay down debt but it is uncertain how quickly the Company could do so. Furthermore, the Company plans to raise secured debt to complete the acquisition. DBRS understands that the majority of the permanent non-bridge bank debt at Freeport will be secured. Additionally, the existing notes and bonds at both Freeport and Phelps will likely be secured. DBRS awaits the Company's decision regarding the collateral for the different categories of debt. Any unsecured debt will be rated at least one notch below the secured debt to reflect structural subordination. DBRS notes that New Freeport would become the largest mining company in North America by market capitalization. However, DBRS notes that competing offers for either Phelps or Freeport are possible. KONINKLIJKE AHOLD: Albert Heijn Unit to Convert Konmar Stores ------------------------------------------------------------- On Nov. 14, 2006, Koninklijke Ahold N.V. announced that the transfer of nearly all Konmar stores from Laurus to the company had been completed. This signals the go-ahead for Albert Heijn to begin the conversion of 21 of the Konmar stores. Albert Heijn aims to complete these renovations in time for Christmas. Of the original 23 stores that Albert Heijn is to take over from Konmar, two will be transferred to Albert Heijn in first half of 2007. Of the 21 remaining branches, nine are to be converted to Albert Heijn XL stores. The first is due to open in Utrecht on Wednesday November 22, 2006. Alongside these 9 XL stores, Albert Heijn will open 12 local branches, of which four will be franchise stores. That means that two further branches will join the two original Konmar franchise stores to make the total of four Albert Heijn franchises. Once the stores have been renovated, a very wide range of products at an affordable price and the renowned Albert Heijn quality will be available to customers of these stores. Albert Heijn has taken on all former Konmar employees. They are currently being trained and are gaining an extensive acquaintance with Albert Heijn. Sale and Relocation In its approval of the takeover of the stores by Ahold, the NMa stipulated that Albert Heijn must sell off a number of its existing stores that are located in the vicinity of the newly acquired Konmar stores. The sale of these stores will take place in Almere, The Hague (two branches), Maassluis and Zoetermeer. Moreover, in a number of cases there are plans to relocate neighboring Albert Heijn stores to the converted Konmar premises. About Ahold Headquartered in Amsterdam, the Netherlands, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, and Europe. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's have assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. VALENCIA HIPOTECARIO: Fitch Junks EUR10.4-Million Class D Notes --------------------------------------------------------------- Fitch Ratings assigned final ratings to Valencia Hipotecario 3 FTA's residential mortgage-backed floating-rate notes: -- EUR90 million Class A1: AAA; -- EUR780.7 million Class A2: AAA; -- EUR20.8 million Class B: A+; -- EUR9.1 million Class C: BBB; and -- EUR10.4 million Class D: CCC. This EUR911 million transaction is the third standalone securitization of residential mortgage loans originated by Banco de Valencia. The final ratings are based on the quality of the collateral, the available credit enhancement, Banco Valencia's underwriting and servicing capabilities, the integrity of the transaction's legal and financial structure and Europea de Titulizacion's administrative capabilities. The final 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 in September 2044. At closing credit enhancement for the Class A1 and A2 notes totals 4.47% and is provided by the subordination of the Class B and C notes and the reserve fund. In addition to subordination and the reserve fund, the transaction also benefits from excess spread. The proceeds of the un-collateralized Class D notes are used to fund the initial balance of the reserve account. ===================== S W I T Z E R L A N D ===================== ADVANCED MEDICAL: Sees US$45-Mln Revenue Cut From Product Recall ---------------------------------------------------------------- Advanced Medical Optics Inc. anticipates a financial impact associated with its voluntarily recall of certain eye care product lots and the related manufacturing capacity constraints caused by a production-line issue at its manufacturing plant in China. Advanced Medical expects the recall to reduce revenue for the remainder of 2006 and 2007 by a total of US$40 million to US$45 million. This is due to expected product returns, supply shortages and temporary lost market share, primarily in Japan and Asia Pacific where the vast majority of products produced at the China facility are shipped. As a result, Advanced Medical now expects its 2006 revenue to be between US$985 million and US$1 billion, compared to prior guidance of US$1,010 million to US$1,020 million. For 2007, the company now expects revenue to be in the range of US$1,060 million and US$1,080 million, compared to prior guidance in the range of US$1,080 million and US$1,100 million. Advanced Medical expects to incur charges and costs to complete the recall, remedy the manufacturing issue and restore market share. For the remainder of 2006 and 2007, the company expects these charges and costs to total around US$35 million to US$40 million, which primarily includes inventory writedowns, recall costs, plant costs, freight and logistics costs, as well as anticipated increased marketing expenses. As a result of the change in anticipated revenue and the associated reduction in margin, coupled with recall-related spending for the balance of 2006 and the increased effective tax rate due to reduction of earnings outside the U.S., AMO now expects 2006 adjusted EPS to be between US$1.30 and US$1.40, compared to previous guidance of US$1.85 to US$1.90. For 2007, the company now expects adjusted EPS to be between US$1.85 and US$2.00, compared to prior guidance in the range of US$2.25 to US$2.35. These actions will affect other financial metrics such as adjusted gross margin and adjusted operating margin for 2006 and 2007. AMO will provide updated guidance on these measures in future communications. The company commenced the voluntary recall because of a production-line issue at its manufacturing plant in China, which could affect the sterility of the product. Of the 2.9 million units being recalled, only 183,000 units were shipped to the U.S. and the remainder was shipped to Asia Pacific and Japan. "This is a production-line issue and is not related to our formulations, which have been used safely by contact lens wearers for years," said Jim Mazzo, AMO chairman, president and chief executive officer. "While we believe the likelihood of patients experiencing an adverse reaction is low based on our investigation to date, we are implementing this voluntary recall as a precautionary measure. While this issue is limited to two of the four production lines in the China facility, we have temporarily ceased all manufacturing there to clean and sanitize the plant. We want to be abundantly certain that eye care practitioners and their patients know they can continue to rely on and trust AMO for products that meet high quality standards. We are working aggressively to replace recalled product and minimize the inconvenience this action may cause." AMO plans to extend the time period of the temporary plant closure in order to move forward a previously disclosed plan to expand manufacturing capacity at the China facility. These plans include adding new filling lines and increasing packaging capacity. The company expects production at the China facility to be suspended for around 10 to 12 weeks. Operations at the company's eye care facility in Alcobendas, Spain are unaffected by this action and production continues uninterrupted. None of the recalled products were manufactured at the Spain facility, which is the primarily supplier for the U.S. and European markets. For the first nine months of 2006, AMO's eye care sales were US$208.6 million and represented around 28 percent of total sales. The company's largest eye care markets are the Americas and Europe, which represented 34% and 28% of total eye care sales, respectively, for the first nine months of 2006. For this same period, Japan and Asia Pacific eye care sales were 24 percent and 14 percent of total eye care sales. About Advanced Medical Optics Based in Santa Ana, California, Advanced Medical Optics, Inc. (NYSE: EYE) -- http://wwwamo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs around 3,600 worldwide. The company has operations in 24 countries and markets products in 60 countries. In Europe, the company maintains operations in Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. * * * In October 2006, Fitch simultaneously affirmed and withdrew its ratings for Advanced Medical Optics Inc. Affected ratings include the company's 'B+' Issuer Default Rating and 'BB+/RR1' Senior Secured Credit Facility Rating. Additionally, Moody's Investors Service confirmed its B1 Corporate Family Rating for Advanced Medical Optics in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. ============= U K R A I N E ============= ATTIK CJSC: Court Names O. Sklyarenko as Insolvency Manager ----------------------------------------------------------- The Economic Court of AR Krym Region appointed Mr. O. Sklyarenko as Liquidator/Insolvency Manager for CJSC Attik (code EDRPOU 30225688). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 9. The case is docketed under Case No. 2-8/2676-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: CJSC Attik Roza Luksemburg Str. 23 Kerch 98300 AR Krym Region Ukraine AVTOLUKS LLC: Court Names Nina Sarichev as Insolvency Manager ------------------------------------------------------------- The Economic Court of Odessa Region appointed Nina Sarichev as Liquidator/Insolvency Manager for LLC AVTOLUKS (code EDRPOU 31619866). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 4. The case is docketed under Case No. 32/281-06-9490. The Economic Court of Odessa Region is located at: Shevchenko Avenue 4 65032 Odessa Region Ukraine The Debtor can be reached at: LLC Avtoluks Promislova Str. 1-a Illichivsk 68000 Odessa Region Ukraine HLIBOROB CJSC: Court Names Vitalij Peychev as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Mikolaiv Region appointed Vitalij Peychev as Liquidator/Insolvency Manager for Agricultural CJSC Hliborob (code EDRPOU 03764979). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 3. The case is docketed under Case No. 10/448/06. The Economic Court of Mikolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: Agricultural CJSC Hliborob 40-richya Zhovtnya Str. 5 Arbuzinka Mikolaiv Region Ukraine KALINA: Cherkassy Court Names Mikola Zanko as Liquidator -------------------------------------------------------- The Economic Court of Cherkassy Region appointed Mikola Zanko as Liquidator/Insolvency Manager for Kalina (code EDRPOU 32330047). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 20. The case is docketed under Case No. 10/4210. The Debtor can be reached at: Kalina Hmelnitskij Str. 25 Medvedivka Chigirin District Cherkassy Region Ukraine RIANT LLC: Rivne Court Names I. Dragun as Insolvency Manager ------------------------------------------------------------ The Economic Court of Rivne Region appointed Mr. I. Dragun as Liquidator/Insolvency Manager for LLC Electric Systems Riant (code EDRPOU 32920181). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 18. The case is docketed under Case No. 9/28. The Economic Court of Rivne Region is located at: Yavornitski Str. 59 33001 Rivne Region Ukraine The Debtor can be reached at: LLC Electric Systems Riant Bila Str. 16 Rivne Region Ukraine SIRET OJSC: Chernivtsi Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Chernivtsi Region commenced bankruptcy supervision procedure on OJSC Siret (code EDRPOU 25079824). The case is docketed under Case No. 8/106/b. The Economic Court of Chernivtsi Region is located at: O. Kobilyanska Str. 14 58000 Chernivtsi Region Ukraine The Debtor can be reached at: OJSC Siret Verhni Petrivtsi Storozhinetskij District 59034 Chernivtsi Region Ukraine SKIF-DOSTUP LLC: Court Names Sergij Moroz as Insolvency Manager --------------------------------------------------------------- The Economic Court of Harkiv Region appointed Sergij Moroz as Liquidator/Insolvency Manager for LLC Skif-Dostup (code EDRPOU 24338181). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 16. The case is docketed under Case No. B-39/123-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor can be reached at: LLC Skif-Dostup Bakulin Str. 11 Harkiv Region Ukraine TORWOOD CONSULTING: Court Names Sergij Zhezherya as Liquidator -------------------------------------------------------------- The Economic Court of Lugansk Region appointed Sergij Zhezherya as Liquidator/Insolvency Manager for Torwood Consulting Ukraine (code EDRPOU 23482183). The Court commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 2. The case is docketed under Case No. 20/191 b. The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: Torwood Consulting Ukraine Oboronna Str. 20a 91000 Lugansk Region Ukraine VIMPEL-COMMUNICATIONS: To Unveil Nine-Month Results on Nov. 30 -------------------------------------------------------------- OJSC Vimpel-Communications will release its 2006 third quarter and nine-month financial and operating results on Nov. 30, 2006. The company will hold conference call and slide presentation of the results at 6:30 p.m. Moscow time on the same date. Alexander Izosimov, Chief Executive Officer, will host the conference call. Joining the conference call are: -- Elena Shmatova, Chief Financial Officer, -- Nikolay Pryanishnikov, Executive Vice President-General Director, Regions; -- Kent McNeley, Chief Marketing Officer, and -- Valery Goldin, Vice President of International and Investor Relations. The call and slide presentation may be accessed via Webcast at: http://www.vimpelcom.com/ 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. VIMPEL-COMMUNICATIONS: Moscow Court Finalizes UKS Acquisition ------------------------------------------------------------- The Moscow Arbitration Court upheld the validity of the transaction on Open Joint Stock Company Vimpel-Communications' acquisition of CJSC Ukrainian Radio Systems, dismissing the third claim filed by Telenor East Invest AS which challenged the transaction's validity. VimpelCom is pleased by the dismissal and by the fact that the two other claims filed by Telenor East Invest AS challenging the validity of the acquisition of URS have also been dismissed by the trial courts hearing each claim and on all appeals heard to date. 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. =========================== U N I T E D K I N G D O M =========================== AIRCOOL LIMITED: Nominates David Rubin as Liquidator ---------------------------------------------------- David Rubin of David Rubin & Partners was nominated Liquidator of Aircool Limited on Nov. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: Aircool Limited 14-20 Sussex Way London N7 6RS United Kingdom Tel: 020 7272 5014 AKER KVAERNER: Inks Drilling Equipment Deal with PPL Shipyard ------------------------------------------------------------- Aker Kvaerner A.S.A. has been awarded a contract with PPL Shipyard Pte Ltd. in Singapore for delivery of drilling equipment for a Baker Marine Pacific Class 375 jack-up drilling rig. The total contract value is around US$15 million. The award is based on a letter of intent signed with PPL Shipyard Pte Ltd. in Singapore, October 2006. The work is undertaken by the Aker Kvaerner subsidiary, Aker Kvaerner MH in Kristiansand. The scope of work for Aker Kvaerner MH is to deliver drilling equipment as well as engineering and commissioning services. The jack-up drilling rig is scheduled for delivery at the end of 2008. The drilling rig will be designed for worldwide operation. "This award confirms not only Aker Kvaerner's performance and close cooperation with PPL Shipyard Pte Ltd on similar projects, but also Aker Kvaerner MH's established position as a leading supplier in the world-wide offshore drilling equipment segment," Roald Amundsen, President of Aker Kvaerner MH, said. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. AKER KVAERNER: Unveils Financial Calendar for 2007 -------------------------------------------------- Aker Kvaerner ASA expects to publish its financial statements for the fourth quarter of 2006 on Feb. 13, 2007, along with its preliminary Annual Result for the fiscal year ended 2006. The company's financial calendar for 2007 also shows: Event Schedule ----- -------- Annual General Meeting March 29, 2007 First Quarter Results 2007 April 25, 2007 Second Quarter Results 2007 Aug. 2, 2007 Third Quarter Results 2007 Oct. 23, 2007 Capital Markets Day Nov. 30, 2007 Dates may be subject to change. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. ANGRY INCORPORATED: Taps John Twizell to Liquidate Assets --------------------------------------------------------- John Twizell of Geoffrey Martin & Co. was appointed Liquidator of Angry Incorporated Limited on Nov. 9 for the creditors' voluntary winding-up procedure. The company can be reached at: Angry Incorporated Limited Clifford Chambers 4 Clifford Street York North Yorkshire YO1 9RD United Kingdom Tel: 01904 642 201 Fax: 01904 628 822 BARRY DAVIES: Creditors' Claims Due Jan. 9, 2007 ------------------------------------------------ Creditors of Barry Davies Oriental Art Limited have until Jan. 9, 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 John Clark at: Menzies Corporate Restructuring 43-45 Portman Square London W1H 6LY United Kingdom The company can be reached at: Barry Davies Oriental Art Limited 1 Davies Street Mayfair London W1K 3DB United Kingdom Tel: 020 7408 0207 Fax: 020 7493 3422 BERNSTEIN GROUP: Taps KPMG to Administer Assets ----------------------------------------------- Myles Antony Halley, David Costley-Wood, Paul Andrew Flint and Brian Green of KPMG LLP, were appointed joint administrators of Bernstein Group Holdings Ltd. (Company Number 04956646) on Nov. 10. 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. Bernstein Group Holdings Ltd. can be reached at: Silburn House Great Bank Road Westhoughton Bolton Lancashire BL5 3XU United Kingdom Tel: 01942 840 840 BERRY BIRCH: Appoints Administrators from KPMG ---------------------------------------------- Finbarr Thomas O'Connell and Jane Bronwen Moriarty of KPMG LLP were appointed joint administrators of Berry Birch & Noble Insurance Brokers Ltd. (Company Number 01000919) on Nov. 10. 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. Berry Birch & Noble Insurance Brokers Ltd. can be reached at: Summit House Glebe Way West Wickham Kent BR4 0RJ United Kingdom Tel: 020 8777 7778 Fax: 020 8777 0790 CCT INTEGRATED: Brings In Liquidators from Kingston Smith --------------------------------------------------------- Nicholas John Miller and Ian Robert of Kingston Smith & Partners LLP were appointed Joint Liquidators of CCT Integrated Systems Limited on Nov. 13 for the creditors' voluntary winding-up procedure. The company can be reached at: CCT Integrated Systems Limited Innovation Centre 225 Marsh Wall Tower Hamlets London E14 9FW United Kingdom Tel: 020 7531 2600 Fax: 020 7531 2629 CHOICES INDEPENDENT: Brings In Begbies Traynor as Administrators ---------------------------------------------------------------- Mark Fry and Peter Gotham of Begbies Traynor (South) LLP were appointed joint administrators of Choices Independent Living and Community Support Services (Company Number 03071553) on Nov. 9. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Choices Independent Living & Community Support Service can be reached at: The Co-op Centre 11 Mowll Street Lambeth London SW9 6BG United Kingdom Tel: 020 7735 7700 Fax: 020 7820 0723 CLIFF COLE: Appoints Keith Barry Stout as Liquidator ---------------------------------------------------- Keith Barry Stout was appointed Liquidator of Cliff Cole Associates Limited on Nov. 7 for the creditors' voluntary winding-up proceeding. The company can be reached at: Cliff Cole Associates Limited 15 Glassworks Studios Basing Place Hackney London E2 8AB United Kingdom Tel: 020 7739 6673 Fax: 020 7729 8351 COMMERCIAL GARAGE: Names T. Papanicola as Administrator ------------------------------------------------------- T. Papanicola of Bond Partners LLP was named administrator of Commercial Garage Equipment Ltd. (Company Number 04460381) on Nov. 13. The administrator can be reached at: T. Papanicola Bond Partners LLP Turnpike Gate House Alcester Heath Alcester Warwickshire B49 5NJ United Kingdom Tel: 01789 766406 Commercial Garage Equipment Ltd. can be reached at: St. Peters Road Dudley West Midlands DY2 9HX United Kingdom Tel: 01384 410 008 DELMARK ENGINEERING: Creditors' Meeting Slated for December 1 ------------------------------------------------------------- Creditors of Delmark Engineering Limited (Company Number 01907320) will meet at 2:30 p.m. on Dec. 1 at: Menzies Corporate Restructuring 43-45 Portman Square London W1H 6LY United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Nov. 30 at: Paul David Williams Joint Administrator Menzies Corporate Restructuring 43-45 Portman Square London W1H 6LY United Kingdom Tel: 020 7487 7240 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. EMI GROUP: Inks Content Licensing Partnership with Gotuit Media --------------------------------------------------------------- Gotuit Media has signed a multi-year strategic content licensing agreement with EMI Music, a unit of EMI Group Plc. Through Gotuit Media, EMI will provide its extensive catalog of music videos from many of the world's most popular artists to consumers on both the Gotuit Broadband Video Portal at www.gotuit.com in the U.S. and through the Gotuit Video on Demand (VOD) cable service, available on select Time Warner and Comcast cable systems. Gotuit will now offer music video fans free access to EMI's large catalogue of music videos from artists such as Chingy, Corrine Bailey Rae, Coldplay, Fat Boy Slim, Gorillaz, Ice Cube, Janet Jackson, Norah Jones, KORN, OK GO!, KT Tunstall, Latin sensations RBD, Keith Urban and many more- - whether they're watching online, or on the couch. EMI joins the ranks of over 40 other top professional content providers whose video programming is available through the Gotuit.com broadband portal and VOD service. With the addition of the EMI music video catalogue, Gotuit will now have one of the largest collections of licensed music videos available for free on the Web. "As EMI continues to move aggressively in the digital arena, it's important that we maintain high standards for delivering any of our artists' content," David Munns, Chairman and CEO of EMI Music North America, said. Gotuit offers viewers an exciting and high-quality way to enjoy our artists' videos. They're a valuable new channel for fans to connect with our artists' music and creative vision. Gotuit is also providing EMI and its artists a great, new revenue stream that allows us to monetize these videos." With its simple, intuitive user interface and exceptional video quality, Gotuit's market-leading Video on Demand service consistency outperforms other similar VOD offerings. Gotuit's online destination, Gotuit.com combines the best in professional content in the areas of music, sports, news and entertainment with superior navigation technology for an unmatched consumer experience. Gotuit.com offers super fast viewing experience, TV-like navigation and patented deep search capabilities that allows users to search within a video, create personal video playlists and share them with friends. "Gotuit has focused exclusively on bringing the best in professional content to our audiences whether on cable, broadband or mobile platforms," said Mark Pascarella, CEO of Gotuit Media. "The addition of EMI Music as a new content partner will further enhance Gotuit's position as a premier provider of on-demand video products, while also providing viewers with the latest popular music video content they crave." About Gotuit Media Gotuit Media -- http://www.gotuit.com/-- is a digital media company delivering a new class of on-demand video products to multiple platforms including broadband, mobile and cable. Gotuit holds a broad portfolio of patents in the on-demand video space, including several landmark awards concerning the use of video metadata for improved navigation, video search, and personalized viewing. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries, including Brazil, and with licensees in a further 20. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. * * * As reported in the Troubled Company Reporter-Europe on Nov. 1, Standard & Poor's Rating Services lowered to 'BB' from 'BB+' its long-term corporate and senior unsecured ratings on U.K.-based music producer and distributor EMI Group PLC, following an annual review. S&P said the outlook is negative. As reported in the TCR-Europe on Oct. 24, Moody's Investors Service downgraded EMI Group plc's senior debt and guaranteed debt ratings to Ba2 from Ba1. At the same time Moody's assigned a Ba2 Corporate Family Rating to EMI. The downgrade is based on Moody's expectation that EMI's debt protection measurements will not improve near-term to a level commensurate with the Ba1 rating category. Moody's said the rating outlook is now stable. EMI GROUP: Inks Partnership Deal with Shanghai Media Group ---------------------------------------------------------- Shanghai Media Group and EMI Music disclosed of a strategic content partnership across all of SMG's online, mobile and traditional media outlets. The deal will see the latest releases by EMI Music artists such as Anson Hu, Xu Wei (China), Sandy Lam (Hong Kong), Richie Ren, David Tao and Jolin Tsai (Taiwan), as well as global stars such as Robbie Williams and the Rolling Stones, promoted on mobile, broadband, print media, TV and radio. Music fans will be able to use the various platforms to get closer to their favorite stars, through online chat rooms, mobile applications, SMS competitions and TV programming. The two companies will also link for special artist events. Kicking off the new partnership are the Flowers Band -- signed to EMI's Pushtyphoon label headquartered in Shanghai -- who recently had their debut digital album Happy World released on SMG's new media platforms. The album can be downloaded and streamed both on the Internet and via mobile phones. The Flowers Band's new music video can also be downloaded and streamed exclusively for two weeks through the 'Dream Vision' platform operated by SMG's mobile division Dragon New Media. Ringtones and ringbacks by the Flowers Band will also be made available to around one million subscribers to Dragon New Media's service. After an online press conference alongside Zhang Da Zhong, vice president of SMG and Michael Hwang, chairman of EMI Music China this morning, the band held an interactive online session with Flowers' fans from across China. "This agreement enables us to provide consumers in China with new ways to experience and interact with music from their favorite artists, while at the same time giving valuable and highly targeted exposure for our artists through SMG's extensive media network," Michael Hwang commented. "The cross platform digital release of music with EMI is a major step towards developing legitimate music distribution in China," Zhang Da Zhong said. "It proves that new media has become a major distribution channel for music, and sets a milestone for new media development in China. SMG will work closely with EMI to market legitimate digital music through our media resources and provide quality entertainment to China consumers." About Shanghai Media Group Shanghai Media Group is one of the world's most powerful and influential Chinese-language media and entertainment groups, with radio and TV as its core business. Other related businesses include performing arts and sports, technical service and investment. SMG was founded in 2001 after merging Radio Shanghai, Eastern Radio Shanghai, Shanghai Television, Oriental Television Station and Shanghai Cable Television. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries, including Brazil, and with licensees in a further 20. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. * * * As reported in the Troubled Company Reporter-Europe on Nov. 1, Standard & Poor's Rating Services lowered to 'BB' from 'BB+' its long-term corporate and senior unsecured ratings on U.K.-based music producer and distributor EMI Group PLC, following an annual review. S&P said the outlook is negative. As reported in the TCR-Europe on Oct. 24, Moody's Investors Service downgraded EMI Group plc's senior debt and guaranteed debt ratings to Ba2 from Ba1. At the same time Moody's assigned a Ba2 Corporate Family Rating to EMI. The downgrade is based on Moody's expectation that EMI's debt protection measurements will not improve near-term to a level commensurate with the Ba1 rating category. Moody's said the rating outlook is now stable. ENRON CORP: Court Approves US$90MM Settlement with CFSB Parties ------------------------------------------------------------- The Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York approves the settlement agreement dated Aug. 25, 2006, between Enron Corp., Enron North America Corp., Enron Natural Gas Marketing Corp., Enron Broadband Services, Inc., Enron Energy Services, Inc., EES Service Holdings, Inc., Enron International Inc., Enron Energy Services Operations, Inc., ECT Merchant Investments Corp., Enron Power Marketing, Inc., Atlantic Commercial Finance, Inc., and: 1. Credit Suisse First Boston, Inc., 2. Credit Suisse First Boston (USA), Inc., 3. Credit Suisse First Boston LLC, 4. Credit Suisse First Boston International, 5. Credit Suisse First Boston (USA) International, Inc., 6. Credit Suisse First Boston, 7. Pershing LLC, 8. DLJ Capital Funding, Inc., 9. DLJ Fund Investments Partners III, L.P., 10. ERNB Ltd., and 11. Merchant Capital, Inc. As reported in the Troubled Company Reporter on Nov. 7, 2006, before the Oct. 15, 2002 bar date for filing claims, certain of the CSFB Entities filed or caused to be filed 17 proofs of claim for obligations allegedly owing to, or damages allegedly suffered by, the CSFB Entities in connection with various credit facilities or financial transactions referred as Brazos Office Holdings, JT Holdings, Syndicated LC Facility, Revolver-Short Term, and Revolver-Long Term. In Sept. 2003, the Enron Parties commenced an action against various financial institutions. In the MegaClaims Litigation, the Enron Parties allege that, in the late 1990's and early 2000's, the defendants, including the CSFB Entities, assisted a small number of the Enron insiders in a scheme to manipulate and misstate the true financial condition of the Enron Entities. The Enron entities subsequently filed various adversary proceedings to avoid and recover, among others, alleged preferential fraudulent transfers in connection with the purchase of Enron common stock. Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that over a period of several months, principals of the Enron Parties and the CSFB Entities held several meetings and telephone conversations to address whether a settlement of the Claims and the CSFB Litigation might be possible and, if so, on what terms and conditions. The discussions, which included participation by senior executives of both parties, intensified in May and June 2006 and eventually resulted in the Settlement Agreement. The principal terms of the Settlement Agreement are: (1) the CSFB Entities will make a US$90,000,000 settlement payment to Enron; (2) certain CSFB Claims under the Revolver-Short Term and Syndicated L/C Credit Facilities will be allowed as Class 4 Claims against Enron in these amounts: Claimant Claim No. Claim Amount -------- --------- ------------ Rushmore Capital I, LLC 99049 US$10,022,994 UBS AG, Stamford Branch 99196 43,767,075 Citibank, as agent 14179 6,985,638 Morgan Stanley Emerging Markets, Inc. 99226 1,278,771 UBS AG, Stamford Branch 99215 18,888,170 JPMorgan Chase, as Agent 11166 11,475,440 (3) certain CSFB Claims will be subordinated and assigned to Enron and the Litigation Trust, to the extent it is formed pursuant to the Plan: Debtor Party Claimant Claim No. Claim Amount ------------ -------- --------- ------------ Enron CSFB 99119 US$5,549,802 ENA CSFB, as Agent 6215 2,934,499 Enron CSFB, as Agent 6216 1,467,250 JPMorgan Chase, ENA as Agent 11235 5,865,000 JPMorgan Chase, EPMI as Agent 11236 1,288,000 JPMorgan Chase, NEPCO as Agent 22135 4,307,383 Ventures CSFB Entities 10808 4,250,120 Enron CSFB Entities 10807 4,157,672 ENRON CSFB Entities 12101 3,919,331 ENA CSFB Entities 13091 22,896,190 Enron CSFB Entities 13090 6,868,857 ENA CSFB Entities 7523 138,304,856 Enron CSFB Entities 7524 120,448,323 ENA CSFB Entities 7525 40,738,911 (4) The Reorganized Debtors will cause the dismissal, with prejudice, of Counts XVI through XIX of the Equity Action; (5) the Enron Entities or the Reorganized Debtors will waive, release, acquit and discharge the CSFB Entities from any and all claims, demands, rights, liabilities, or causes of action relating to the MegaClaims Litigation and the MegaClaims Objection; and (6) Enron's claims against the CSFB Assignees will be deemed dismissed, with prejudice. 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) ENRON CORP: Seeks Approval for Deseret Generation Settlement ------------------------------------------------------------ Enron Corp., Enron North America Corp., and Enron Power Marketing, Inc., ask the Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to approve their settlement agreement with Deseret Generation & Transmission Co-Operative. Melanie Gray, Esq., at Weil, Gotshal & Manges LLP, in New York, says that ENA and Deseret Generation are parties to an electricity SWAP agreement, dated Oct. 31, 2001, and a contingent call contract, dated April 30, 2001. EPMI and Deseret also entered into a Confirmation Agreement, dated April 30, 2001, for an electricity swap pursuant to the Western Systems Power Pool Agreement effective as of Jan. 1, 1999. Enron executed a US$75,000,000 Guaranty, dated May 1, 2001, to support ENA's obligations to Deseret under the Contingent Call Contract. On Aug. 1, 2002, Deseret filed Claim Nos. 2594, 2595 and 2597 each for US$16,548,209 against Enron, EPMI and ENA. Deseret alleges that Enron agreed to guaranty ENA and EPMI's obligations arising under the Contracts through the Guaranty and an unexecuted guaranty agreement attached to the EPMI SWAP Contract. On Nov. 25, 2003, the Debtors filed Adversary Proceeding No. 03-93409 against Deseret, which sought to avoid the Guaranty pursuant to Section 548 of the Bankruptcy Code. On Jan. 8, 2004, the Debtors filed an objection to the Deseret Claims, seeking to reduce the amounts of Claim Nos. 2597 and 2595. The Debtors claimed that no amounts are due under the Contingent Call Contract, the Guaranty, and the Unexecuted Guaranty. On Jan. 10, 2006, the Reorganized Debtors filed their supplemental objection to the Deseret Claims, seeking to: (i) reduce the amounts of Claim Nos. 2597 and 2594, including a right of set-off in favor of EPMI for US$346,500 based on electricity delivered by EPMI to Deseret under the EPMI SWAP Contract; and (ii) disallow any claims for amounts allegedly owed under the Contingent Call Contract, the Guaranty, and the Unexecuted Guaranty. To settle their disputes, the parties reached a settlement agreement, which provides that: (1) Claim No. 2597 will be reduced and allowed as a Class 5 Allowed General Unsecured Claim against ENA for US$2,150,925; (2) Claim No. 2595 will be reduced and allowed as a Class 6 Allowed General Unsecured Claim against ENA for US$6,772,315; (3) Claim No. 2594 will be disallowed and expunged in its entirety; (4) they will mutually release each other from all claims related to the Contracts; and (5) the Adversary Proceeding will be dismissed with prejudice. 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) EQUITABLE LIFE: Wants Business Moved to Canada Life Under Scheme ---------------------------------------------------------------- Equitable Life Assurance Society and Canada Life Limited ask the High Court of Justice in the U.K. to sanction a scheme under Part VII of the Financial Services and Markets Act 2000. Equitable Life and Canada Life also ask the High Court to make ancillary provisions in connection with the implementation of the Scheme under Section 112 of the Act. The application will be heard before the Companies Court Judge at the Royal Court of Justice, Strand, London, on Feb. 1, 2007. Under the Scheme, Equitable Life will transfer part of its non-profit annuity pension business to Canada Life. Equitable Life will retain all liabilities in relation to its business that occurred on or before the transfer became effective. In addition, all policies that occurred before the transfer became effective will remain with Equitable Life. All policies that arose on or after the transfer became effective will be given to Canada Life. Any person, including a policyholder or employee, who alleges to be affected by the scheme may appear at the hearing. Objections to the Scheme, if any, must be in writing and served on: a. Solicitors for Equitable Life Assurance Society Lovells Atlantic House Holborn Viaduct London EC1A 2FG Tel: +44 (0) 20-7296-2000 Fax: +44 (0) 20-7296-2001 b. Solicitors for Canada Life Limited Slaughter and May One Bunhill Row London EC1Y 8YY Tel: +44 (0) 20-7600-1200 Fax: +44 (0) 20-7090-6000 Copies of the Scheme is available free of charge at Equitable Life's Web site http://www.equitable.co.uk/and from Canada Life's Web site http://canadalife.co.uk/ The Scheme is also available by writing to: Equitable Life Assurance Society Walton Street, Aylesbury Bucks HP21 7QW United Kingdom Tel: 0845-1202-512 +44 1296-386242 -- or -- Canada Life Limited Canada Life Place High Street, Potters Bar Hertfordshire EN6 5BA United Kingdom Tel: 0845-6060-708 +44 1707-422022 Equitable Life Assurance Society -- http://www.equitable.co.uk/ -- is a closed life insurer. * * * Standard & Poor's Ratings Services raised in May 2006 the long- term counterparty credit rating on U.K.-based life insurer The Equitable Life Assurance Society to 'BB' from 'B+'. FEDERAL-MOGUL: Court Places Insurers' Lift Stay Motion On Hold -------------------------------------------------------------- The Honorable Joseph H. Rodriguez, Senior U.S. District Court Judge for the District of Delaware, granted the request of certain insurers of Federal-Mogul Corp. and directed the Hon. Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware, to place the insurers' request to lift the automatic stay off the Bankruptcy Court's calendar pending determination by the District Court of the Insurers' request to withdraw the reference of the Lift Stay Motion. In a separate order, Judge Fitzgerald ruled that the Insurers' request to lift the automatic stay to commence a state court insurance coverage action constitutes a core proceeding. Federal-Mogul Products Inc., with the Insurers' consent, previously filed with the Bankruptcy Court, an agreed proposed order, which provided that hearings on the Lift-Stay Motion will be taken off the calendar pending resolution of the Insurers' Withdraw-Reference Motion. The Insurers ask Judge Fitzgerald to reconsider the Modified Agreed Order and enter, instead, the original Agreed Order to allow the Withdraw-Reference Motion to be addressed in due course by the U.S. District Court for the District of Delaware, as contemplated by 28 U.S.C. Section 157(d). Brian L. Kasprzak, Esq., at Marks, O'Neill, O'Brien and Courtney, P.C., in Wilmington, Delaware, asserted that scheduling the Lift-Stay Motion for hearing in the Bankruptcy Court before the District Court even addresses the merits of the Withdraw-Reference Motion means that the Bankruptcy Court is intruding on the District Court's prerogative to determine whether particular matters in a bankruptcy case ought to be decided by the District Court rather than the Bankruptcy Court. Mr. Kasprzak also pointed out that by addressing the Lift-Stay Motion separately from the District Court's consideration of the Insurers' Abstention Motion the Bankruptcy Court creates the very risk of inconsistent rulings and resultant judicial inefficiency that the Withdraw-Reference Motion seeks to avoid. Furthermore, Mr. Kasprzak argued that implementation of the Modified Agreed Order will upset an agreement among the parties to an adversary proceeding commenced by DII Industries, LLC, against F-M Products. "A court ought to be reluctant to unravel a negotiated scheduling agreement reached at arm's-length by litigation adversaries, unless manifest injustice would result from the parties' agreement," Mr. Kasprzak notes. "Surely, no injustice would result from approving a negotiated arrangement specifically designed to permit the District Court to exercise discretion granted it by Congress to decide if the Lift-Stay Motion should be decided by that Court in tandem with the Abstention Motion, or separately by [the Bankruptcy] Court." Insurers Tackle F-M Products' Responses It is apparent from F-M Product's response to the Insurers' Motions that it agrees that coverage litigation ought to proceed now in a state court, Mr. Kasprzak tells Judge Fitzgerald. Mr. Kasprzak says F-M Products' argument against the Lift-Stay Motion boils down to "a contention that a debtor should be permitted to manipulate the automatic stay for tactical forum- shopping purposes in order to gain an artificial litigation priority over its adversaries." The Debtor argues that the Insurers' proposed New York action is no longer necessary, because it already filed a coverage suit in New Jersey state court, making the New York action duplicative. Mr. Kasprzak contends that the basic premise of the Debtor's argument is wrong, because "courts do not allow a debtor to use the automatic stay as a sword rather than a shield." Accordingly, the Insurers want the Debtor's objection to the Lift-Stay overruled. "[T]he courts of New York and New Jersey should be allowed to sort out which case proceeds," Mr. Kasprzak says. Mr. Kasprzak notes that even if the law did permit F-M Products to misuse the stay, its claim that the New Jersey action is an adequate substitute for the insurance companies' proposed New York action ignores the fact that there are other claimants to the insurance policies besides the Debtor who would be parties to the New York action, but cannot be joined to the New Jersey action because of the automatic stay. Unlike the insurance companies' proposed New York suit, the Debtor's New Jersey action cannot comprehensively resolve the parties' coverage disputes, Mr. Kasprzak explains. Compagnie Europeenne D'Assurances Industrielles support the Insurers' position. F-M Products Wants Lift-Stay Motion Denied F-M Products asks the Bankruptcy Court to deny the Insurers' Lift-Stay request because there is no longer any plausible ground for filing a lawsuit in New York state court. James E. O'Neill, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, in Wilmington, Delaware, informs the Bankruptcy Court that F-M Products filed its own coverage action in the Superior Court of New Jersey seeking to establish (i) scope of property that belongs to its bankruptcy estate and (ii) coverage rights as an insured party. He points out that F-M Products' true position is as "plaintiff," hence, F-M Products has exercised its rights to choose the appropriate state court forum. "The New Jersey Superior Court is the appropriate state court forum because New Jersey has the most substantial relationship to relevant parties and events during all of the years at issue," Mr. O'Neill tells Judge Fitzgerald. To the extent that the District Court refuses to abstain from hearing an adversary proceeding originally filed by Dresser Industries, Inc., against F-M Products, as well as a group of around 70 insurers, there will be never be a need for anyone to file any lawsuit in New York in connection with the disputed coverage issues, Mr. O'Neill notes. The coverage disputes will have to be resolved in the District Court, he points out. In addition, to the extent that the District Court does abstain and the parties resume their fight in New Jersey Superior Court, then any insurers that are dissatisfied with F-M Products' choice of forum will be able to seek dismissal of the New Jersey Action on the grounds of forum non-conveniens, Mr. O'Neill explains. Only if a dismissal is granted would the insurers have any legitimate basis for seeking to drag F-M Products -- a debtor with limited resources -- into another state court, Mr. O'Neill contends. Withdraw-Reference Motion Should Also Be Denied F-M Products also ask Judge Fitzgerald to deny the Insurers' request to withdraw the reference of the Lift-Stay Motion from the Bankruptcy Court because the issues raised are "basic bankruptcy law questions that are best considered and decided by [a] bankruptcy court, which specializes in bankruptcy law and is familiar with [F-M Products'] financial condition and reorganization efforts." Considering F-M Products' filing of its New Jersey Action, F-M Products maintains that it does not oppose discretionary abstention in the Adversary Proceeding except as to "corporate successorship" issue, which has been fully briefed and is ripe for decision. Certain Underwriters of Lloyd's, London and London Market Companies; Employers Mutual Casualty Company; European Reinsurance Company of Zurich; and Swiss Reinsurance Company support the Insurers' Withdraw-Reference Motion. The Underwriters, et al., believe that failure to withdraw the reference could result in inconsistent rulings by the District and Bankruptcy Courts. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. In the Asian Pacific region, the company has operations in Malaysia, Australia, China, India, Japan, Korea, and Thailand. The company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No.01- 10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). FAIRGROUND GAMING: Liquidating Assets Following Unit Disposal ------------------------------------------------------------- Fairground Gaming Holdings plc will hold an Extraordinary General Meeting at 10:00 on Dec. 11 to approve: * the disposal of the company's Spin Palace Group assets; and * the cessation of common stock trading in the London Stock Exchange-Alternative Investments Market. On Nov. 17, the company agreed to dispose of its gaming operations and infrastructure in their entirety to Seahouses Holdings Limited, a major shareholder. These operations and the infrastructure to support them are conducted and held by FGH Acquisitions (Spin) Ltd. and its subsidiaries. Terms of the Disposal The total estimated consideration payable for The Spin Palace Group is GBP11.1 million which is to be satisfied by: -- a cash payment of GBP5.09 million; -- the reclassification of Seahouses' 9,100,100 ordinary shares in Fairground Gaming into Deferred Shares which will have no voting and only notional economic rights; and -- the cancellation of Seahouses' 27,294,707 warrants to subscribe for 27,294,707 new ordinary shares in Fairground Gaming; The value attributed to ordinary shares reclassified into Deferred Shares and cancellation of warrants is around GBP6 million on the basis of 16.5 pence being the market price per ordinary share in the Company on Nov. 16, 2006. As the Disposal is a sale of shares, Seahouses will acquire The Spin Palace Group with all the liabilities of The Spin Palace Group including player balances and all leases, and will take over all employees. The Executive Directors of Fairground Gaming will not remain with the operations that are being disposed of. Seahouses has advised the Company that it has no intention to operate the business of the Spin Palace Group in the United States. Following the completion of the disposal, the company's board of directors intends to apply for delisting of its ordinary shares on LSE's Alternative Investments Market and wind-up Fairground Gaming's business and return cash to shareholders. Voluntary Liquidation The Board intends to liquidate Fairground Gaming and to distribute the cash balance to the remaining non-Seahouses shareholders, who in aggregate will hold 28,626,324 ordinary shares in the Company, as a return of capital. Subsequent to the Disposal, the Company expects that it will be left with around GBP6.16 million in cash after providing for winding-up costs and fees related to the Disposal. It is estimated that this will yield around 21.5 pence per ordinary share in the Company and it is expected that this liquidation distribution will take place by the end of February 2007. This payment would represent a premium of around 68% to the average weighted price of an ordinary share in the Company from the period of Oct. 13, 2006, when the UIGEA was signed into law to Nov. 16, 2006. The board anticipates that if the resolutions are passed and the disposal is completed on Dec. 15, a liquidator will be appointed the day after and distributions will be made to shareholder by the end of February 2007. Guardian Trust Company Limited, as trustee for the Federation Trust, which holds 2,783,824 Ordinary Shares representing around 9.7 percent of the Ordinary Shares eligible to vote in favor of the Resolutions, has irrevocably undertaken to vote in favor of the Resolutions. Evan Gregory Hoff is interested in such Ordinary Shares by virtue of the fact that his immediate family are members of the class of discretionary beneficiaries of the Federation Trust. Expected Timetable ------------------ Latest time and date for receipt of Proxy Forms 10:00, Dec. 9 Extraordinary General Meeting 10:00, Dec. 11 Completion of Disposal Dec. 15 Appointment of Liquidator Dec. 15 Shares cease trading on AIM 7:00, Dec. 18 Distribution to Shareholders Around Feb. 28, 2007 UIGE Act of 2006 Following the passing of the Unlawful Internet Gambling Enforcement Act of 2006 on Oct. 13 in the United States, the Spin Palace Group terminated participation by US-based customers in its casino and poker activities. According to Fairground Gaming, the recent passing of UIGEA has adversely impacted the company. The Board terminated participation by US-based customers in the Spin Palace Group's casino and poker activities before President Bush signed UIGEA into law. The impact on the business of the Spin Palace Group has predictably been severe with around 70 percent of the Spin Palace Group's revenue being lost. As a result, the Board urgently embarked on a process of evaluating alternative strategies, including the sale of either part or all of the business of the Spin Palace Group, with a view to maximizing Shareholder value. The Board believes the Disposal is the optimal course of action. "The closure of our U.S.-facing activity and the impact of that legislation on the listed company environment continues to be deeply felt, with our business now only marginally profitable," Fairground Gaming CEO Evan Gregory Hoff said. "Accordingly, in the interests of maximizing value for our shareholders, we believe it is in the best interests of all our shareholders to accept this offer for The Spin Palace Group and for the Company to proceed along the lines announced." The Company's unaudited interim financial results for the six month period to June 30, 2006, showed total assets of US$87.4 million (including intangible assets of US$64.2 million), total liabilities of US$49.8 million and shareholders' funds of US$37.6 million. The loss for the period amounted to US$109,000. This loss comprised revenue for 15 days from the Spin Palace Group of US$785,000, administrative expenses of US$1,183,000 and financing income of US$289,000. Administrative expenses included costs for the Fairground Gaming operation for the half year of US$701,000. Board Changes On and with effect from completion of the Disposal, Richard Howard Akitt will resign from the Board. All other directors will resign prior to, or with the appointment of the liquidator. As Seahouses holds 9,100,100 Ordinary Shares representing around 24 percent of Fairground Gaming's issued share capital as at the date of Nov. 17, the disposal is considered a related party transaction under the AIM Rules. Accordingly Seahouses will not vote on any of the Resolutions. About Spin Palace The Spin Palace Group comprises online casino and poker operations licensed in the Kahnawake Mohawk Territory of Canada offering customers more than 200 different casino and poker games. Net gaming revenue (the difference between amounts wagered by active players and the amounts paid out to active players minus bonuses paid to active players) in 2005 was almost US$30 million from a base of around US$19 million in 2004. All but three percent of this revenue was generated through casino activities, with the remainder through poker games. Headquartered in Douglas, Isle of Man, Fairground Gaming Plc -- http://www.fairgroundgaming.com/-- was formed in 2005 with the specific purpose of taking advantage of expected consolidation within the online gaming sector. The company was floated on the AIM market of the London Stock Exchange in October 2005, with the stock symbol FGH. GENERAL MOTORS: Kirk Kerkorian Cuts GM Stake to 7.4% ---------------------------------------------------- Billionaire investor Kirk Kerkorian's Tracinda Corp. had sold US$462 million of stock in General Motor Corp., cutting its stake in the automaker to 7.4% from 9.9% of outstanding shares, Kevin Krolicki of Reuters reports. According to the source, Mr. Kerkorian dropped his plans to buy more GM shares after Jerome York's resignation from GM board and the closure of potential partnership deal between GM and the Nissan Motor Co.-Renault SA alliance, which sent GM stock dropping 5% on the New York Stock Exchange. Carlos Ghosn heads both Nissan and Renault. John D. Stoll and Stephen Wisnefski of the Wall Street Journal reports that Mr. Kerkorian had been the driving force behind the talks but failed to work it out because of a dispute over the specific equity arrangement of a potential tie-up, which leads to the resignation of his associate Mr. York from GM's board after GM ended the deal. The move to sell shares led many analysts to believe that Mr. Kerkorian's plans include the possibility of Tracinda seeking a proxy fight to place its members on GM's board of directors, Wall Street relates. Bloomberg states that Mr. Kerkorian offered to buy US$825 million in shares of Las Vegas-based, casino operator MGM Mirage, the same day when the stake sale was announced. Tracinda, GM's second largest shareholder, seeks to pay US$55 a share to increase its stake in MGM to 61.7%. In a filing with the U.S. Securities and Exchange Commission, Tracinda agreed to sell 14 million shares in a private transaction for US$33 each. The purchase is to be settled today, Nov. 24, 2006. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Nov. 16, Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. At the same time, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corp. The term loan will be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. HERTZ CORP: Moody's Changes Outlook After IPO Completion -------------------------------------------------------- Moody's Investors Service changed the rating outlook of The Hertz Corp. to stable from negative following the completion of a US$1.3 billion IPO by Hertz Global Holdings, Inc., the acquisition vehicle through which equity sponsors Clayton, Dubilier & Rice, Inc., The Carlyle Group and Merrill Lynch Global Private Equity acquired Hertz in December of 2005. Proceeds from the IPO have been used to repay a US$1 billion loan facility that funded a US$1 billion dividend payment to its common stockholders (consisting of equity sponsors and management) in June 2006, and to make an additional US$260 million distribution to common stockholders prior to the IPO. The change in outlook to stable reflects Moody's view that the repayment of the Hertz Holdings US$1 billion loan addresses the potential financial risk posed to Hertz when its parent company took on this obligation. Because dividends from Hertz represent the only source of earnings, cash flow and debt service capacity for Hertz Holdings, the US$1 billion loan could have resulted in added pressure on Hertz to make such payments. The outlook had been changed to negative on June 29 as a result of this risk. The stable outlook also reflects the rating agency's view that although Hertz's leverage increased considerably as a result of the December 2005 buyout, the company's competitive position and credit metrics, relative to those of its rental-company peers, will remain supportive of a Ba3 corporate family rating. Hertz's car rental operations enjoy a leading position in the on-airport segment and a growing presence in the off-airport market. In addition, the company's equipment rental unit, Hertz Equipment Rental Company, benefits from the continuing strong rebound in the commercial construction market. The principal operating challenges the company faces include: -- the weak financial position of its OEM automobile suppliers, -- the rising cost of vehicles, and -- the exposure to changes in used car prices due to higher purchases of risk vehicles that are not covered by OEM repurchase agreements. In addition, the equipment rental markets of HERC remain highly cyclical. Despite these operating challenges, Hertz's competitive strengths should enable the company to gradually strengthen its credit metrics as the healthy construction cycle continues and as it begins to harvest the benefits of efforts to manage higher fleet costs. These efforts include: -- modestly extending the holding period for cars, -- purchasing a higher percentage of risk vehicles, and -- increasing the pace at which it passes on higher vehicle costs to customers. At September 2006 LTM Debt/EBITDA was 4.5x, YTD EBIT/Interest was 1.3x, and LTM EBITDA/Interest was 3.8x. In addition, the company maintains a prudent level of liquidity with cash and securities of US$436 million and US$1.6 billion available under its ABL credit facility. The Hertz Corp., headquartered in Park Ridge, New Jersey, operates the largest general use car rental business in the world, and one of the largest industrial, construction and material handling rental businesses in North America. INHOCO 3005: Appoints Joint Administrators from KPMG ---------------------------------------------------- Myles Antony Halley, David Costley-Wood, Paul Andrew Flint and Brian Green of KPMG LLP were appointed joint administrators of Inhoco 3005 Ltd. (Company Number 04956429) on Nov. 10. KPMG LLP -- http://www.kpmg.co.uk/-- in the U.K. is part of a strong global network of member firms with 9,500 partners and staff working in 22 offices across the U.K. providing audit, tax and advisory services. Headquartered in Manchester, England, Inhoco 3005 Ltd. manufactures kitchen units. INTERFACE INC: Moody's Lifts Rating to B1 on Improved Margin ------------------------------------------------------------ Moody's Investors Service upgraded the long-term ratings of Interface Inc., which had been on positive outlook since April 17. The upgrade reflects the company's sustained improvement in operating margin and free cash flow generation; it also further acknowledges Interface's financial and operating recovery following a severe slowdown in the corporate interiors market in the period from 2001 through 2003. The upgrade also reflects the company's issuance of 5.75 million shares (including the exercise of an over-allotment option) at US$14.65 per share, resulting in net proceeds of around US$79 million on Nov. 10 and the company's intention to use the proceeds to repay outstanding debt. Rating actions: -- original US$150 million 7.3% guaranteed senior unsecured notes due 2008, upgraded to B1 (LGD 3, 48%) from B2 (LDG 3, 49%); -- US$175 million 10.375% guaranteed senior unsecured notes due 2010, upgraded to B1 (LGD 3, 48%) from B2 (LDG 3, 49%); -- US$135 million 9.5% guaranteed senior subordinated notes due 2014, upgraded to B3 (LGD 5, 88%) from Caa1 (LDG 5, 89%); -- Corporate Family Rating, upgraded to B1 from B2; and -- Probability of Default Rating, upgraded to B1 from B2. The outlook for the ratings is stable. Further improvements in diversification efforts, sustainable adjusted free cash flow to debt ratios of about 10%, EBIT to interest coverage comfortably above two times and continuing delivering below adjusted debt to EBITDA of 3 times would provide a certain degree of financial flexibility to manage what remains a cyclical business and could lead to a positive outlook. Lack of progress with the company's segmentation strategy or indications of slowdown in core markets resulting in a decline in adjusted free cash flow to debt below 5%, EBIT to interest coverage below 1.5 times could result in downward pressure on the ratings. Cash or debt-financed acquisitions or the assumption of additional indebtedness could result in a downgrade. MENDIP PLYWOOD: Hires Joint Administrators from BDO Stoy -------------------------------------------------------- Graham David Randall and David Harry Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of Mendip Plywood Ltd. (Company Number 01998482) on Nov. 9. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. Mendip Plywood Ltd. can be reached at: Peartree Industrial Estate Bath Road Langford Bristol Avon BS40 5DJ United Kingdom Tel: 01934 853 385 Fax: 01934 853 344 P.J. BUTLER: Taps Begbies Traynor as Administrators --------------------------------------------------- Gary Lee and Kevin Coates of Begbies Traynor were appointed joint administrators of P.J. Butler & Son Ltd. (Company Number 00546679) on Nov. 10. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Oldbury, England, P.J. Butler & Son Ltd. is engaged in freight transport by road. PHOENIX INDUSTRIAL: Appoints Begbies Traynor as Administrators -------------------------------------------------------------- David Robert Acland and Steven John Williams of Begbies Traynor were appointed joint administrators of Phoenix Industrial Flooring Ltd. (Company Number 03112419) 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. Phoenix Industrial Flooring Ltd. can be reached at: Littleton Business Park Littleton Drive Cannock Staffordshire WS12 4TR United Kingdom Tel: 01543 466 906 RIBBLESDALE ENGINEERING: Hires Liquidator from J M Marriott ----------------------------------------------------------- Jonathan Malcolm Timmis of J M Marriott & Co. was appointed Liquidator of Ribblesdale Engineering Limited on Nov. 13 for the creditors' voluntary winding-up proceeding. The company can be reached at: Ribblesdale Engineering Limited Station Road Settle North Yorkshire BD249AD United Kingdom Tel: 01729 824 010 Fax: 01729 824 019 SAMSONITE CORP: Offers Senior Notes & Declares Special Dividend --------------------------------------------------------------- Samsonite Corp. is commencing offers to purchase for cash any and all of its outstanding 8-7/8% Senior Subordinated Notes due 2011 and Floating Rate Senior Notes due 2010. The current aggregate outstanding principal amount of Senior Subordinated Notes is US$164,970,000, and the current aggregate outstanding principal amount of Floating Rate Notes is EUR100,000,000. In connection with the offers to purchase, the Company is soliciting consents to certain proposed amendments to the Notes and the indentures governing the Notes, which will eliminate substantially all of the restrictive covenants and certain provisions relating to events of default and amend certain other related provisions. Holders may not tender their Notes without also delivering consents or deliver consents without also tendering their Notes. Each offer to purchase will expire at 9:00 a.m., New York City time, on Dec. 20, 2006, unless extended or earlier terminated. The consent solicitations will expire at 9:00 a.m., New York City time, on Dec. 6, 2006, unless extended. The "Total Consideration" shall be: (i) US$1,088.75 for each $1,000 principal amount of Senior Subordinated Notes tendered on or prior to the Consent Date, and not validly withdrawn prior to execution of the applicable supplemental indenture, plus accrued and unpaid interest on such principal amount of Senior Subordinated Notes to, but not including, the Initial Payment Date, and (ii) EUR1,020 for each EUR1,000 principal amount of Floating Rate Notes tendered on or prior to the Consent Date, and not validly withdrawn prior to execution of the applicable supplemental indenture, plus accrued and unpaid interest on such principal amount of Floating Rate Notes to, but not including, the Initial Payment Date. The Total Consideration includes the Consent Payment. The "Tender Offer Consideration" is equal to the Total Consideration minus the applicable Consent Payment. If the requisite number of consents required to amend the applicable indenture is received and the applicable offer to purchase is consummated, the Company will make consent payments of: (i) in the case of Senior Subordinated Notes, US$20 per US$1,000 principal amount of Senior Subordinated Notes for which consents have been validly delivered and not revoked on or prior to the Consent Date for such Notes, and (ii) in the case of Floating Rate Notes, EUR20 per EUR1,000 principal amount of Floating Rate Notes for which consents have been validly delivered and not revoked on or prior to the Consent Date for such Notes. If the Notes are accepted for payment pursuant to the offers, holders who validly tender (and do not validly withdraw) their Notes pursuant to the offers on or prior to the applicable Consent Date will receive the applicable Total Consideration on the applicable Initial Payment Date. Holders that validly tender their Notes after the applicable Consent Date, but on or prior to the applicable Expiration Date, will receive the applicable Tender Offer Consideration only but not the applicable Consent Payment on the applicable Subsequent Payment Date. No tenders will be valid if submitted after the Expiration Date. The "Initial Payment Date" is expected to be on or promptly following the Initial Acceptance Date. The "Initial Acceptance Date," is expected to be the date that all conditions to the respective offer have been satisfied. The "Subsequent Payment Date" is expected to be on or promptly following the Subsequent Acceptance Date. The "Subsequent Acceptance Date" is expected to be the first business day on which any Notes are validly tendered and not withdrawn after 9:00 a.m., New York City time, on the Consent Date but on or prior to the Expiration Date. The Initial Acceptance Date and the Subsequent Acceptance Date may, if the conditions to the respective offer have not been satisfied prior thereto, be the same date. The terms of the offers to purchase and consent solicitations, including the conditions to the Company's obligations to accept the Notes tendered and consents delivered and pay the applicable Tender Offer Consideration and Consent Payment, are set forth in the Company's Offers to Purchase and Consent Solicitation Statement, dated Nov. 21, 2006. One of the conditions to completing the offers is that the Company has available funds sufficient to pay the total consideration with respect to all notes (regardless of the amount of notes tendered) from: (i) borrowings under a new credit facility on terms and conditions acceptable to Samsonite, in its sole discretion, on or prior to the Initial Acceptance Date and (ii) cash on hand. The Company may amend, extend or terminate the offers to purchase and consent solicitations at any time in its sole discretion without making any payments with respect thereto. The offers to purchase and consent solicitations are part of a series of transactions that are expected to include these components: * the conversion of at least 90% of the Company's outstanding shares of convertible preferred stocks into shares of its common stock; * the entering into a new credit facility consisting of an approximately US$450 million term loan facility and an approximately US$80 million revolving credit facility; and * the distribution of approximately US$175 million in cash in the form of a special dividend to the Company's stockholders and dilution adjustment payments to its option holders. The Company's board of directors has formed a special committee of its independent directors to review and evaluate the Preferred Stock Conversion and the Distribution, including the declaration of the Special Dividend, to negotiate the terms of such transactions with representatives of the holders of its Preferred Stock and to make recommendations to the Company's board of directors. There can be no assurance that these transactions will be completed or that the Special Dividend will be declared. The Company has been informed by its major stockholders that collectively hold over 90% of its outstanding shares of the Preferred Stock that if the Company's board of directors declares the Special Dividend, then the holders will convert all their shares of Preferred Stock into shares of the Company's common stock immediately prior to the payment of the Special Dividend. The Company expects to enter into a new credit facility consisting of an approximately US$450 million senior secured term loan facility and an approximately US$80 million senior secured revolving credit facility, including a letter of credit sub-facility. The proceeds of the term loan facility, along with a portion of the proceeds of the revolving credit facility and cash on hand, are expected to be used to finance the payment of the Special Dividend and the offers to purchase the Notes. The new credit facility is expected to be secured with substantially all of the Company's domestic assets and certain foreign assets, and contain conditions precedent, representations and warranties, covenants and events of default customary for transactions of this type. In addition, the new credit facility is expected to be prepayable by the Company at any time without any penalty or premium and contain mandatory prepayments provisions customary for transactions of this type. The Company expects the revolving credit facility to have a maturity of six years and the term loan facility to have a maturity of seven years. There can be no assurance that the Company will be able to enter into the new credit facility as described above. The Company may restructure and/or reduce the amount of borrowings under the new credit facility depending on the amount of the Special Dividend declared by its board of directors or if the board decides not to declare the Special Dividend. Deutsche Bank AG, London Branch and Merrill Lynch&Co. are the dealer managers for the offers to purchase and the solicitation agents for the consent solicitations. Samsonite Corporation (OTCBB: SAMC.OB) -- http://www.samsonite.com/-- designs, manufactures and distributes luggage, casual bags, business cases and travel related products throughout the world. The Company also licenses its brand names and is involved with the design and sale of apparel. The company's executive offices are located in London, England. * * * As reported in the Troubled Company Reporter-Europe on Sept. 15, Moody's Investors Service placed the long-term ratings of Samsonite Corporation, under review for possible upgrade: * B1 corporate family rating * B1 on the senior unsecured notes * B3 on the 8.875% subordinated notes SAMSONITE CORP: S&P Revises Outlook on Special Dividend Issuance ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Samsonite Corp. to negative from stable. At the same time, it affirmed ratings on the company, including the 'BB-' corporate credit rating. The company had around US$306.8 million of total debt outstanding as of July 31, 2006. The revised outlook follows the company's announcement that it plans to issue a US$175 million special dividend to the company's shareholders. "We believe the special dividend reflects a more aggressive financial policy and will result in higher pro forma debt leverage," said Standard & Poor's credit analyst Mark Salierno. As part of the transaction, Samsonite will refinance its outstanding public debt. The company plans to enter into a new, US$530 million senior secured credit facility, consisting of an US$80 million revolving credit facility and a US$450 million term loan. Proceeds of these facilities will be used to pay the special dividend, and to fund the company's offer to repay the remainder of its EUR100 million floating-rate notes due 2010 and US$165 million on its outstanding senior subordinated notes due 2011. S&P expects these transactions to close by the end of December 2006. As a result of the refinancing and the incremental debt added to the company's balance sheet, the rating agency expects pro forma lease- and pension-adjusted debt leverage to increase to slightly more than 4x from about 3.2x as of July 31, 2006. The ratings on Samsonite reflect: -- its aggressively leveraged financial profile, -- narrow business focus, and -- exposure to the travel-and-tourism industry. These factors are somewhat offset by the company's strong market position as a leading global manufacturer and distributor of luggage, casual bags, business cases, and other travel-related products. SEA CONTAINERS: Can Assign Admin. Status to Claims Until Dec. 19 ---------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware grants, on an interim basis, Sea Containers Inc. and its debtor-affiliates' request to accord administrative priority expense status to all Intercompany Claims, through and including Dec. 19, 2006. As reported in the Troubled Company Reporter on Oct. 30, 2006, in the normal operations of their business, the Debtors engage in intercompany transactions involving intercompany trade and intercompany cash and capital needs. As a result, there are numerous intercompany claims that reflect intercompany receivables and payments made in the ordinary course of the Debtors' businesses. These Intercompany Transactions include, but are not limited to expense allocation and advances. At any given time, there may be Intercompany Claims owing among the Debtors. The Debtors maintain records of all Intercompany Transactions and can ascertain, trace and account for all Intercompany Transactions. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 15/945-7000). SEA CONTAINERS: Reports Initial Consolidated Cash Flow Forecast --------------------------------------------------------------- Sea Containers Ltd. and its subsidiaries Sea Containers Services Ltd. and Sea Containers Caribbean Inc. delivered a consolidated cash flow forecast with the U.S. Bankruptcy Court for the District of Delaware on Nov. 1, 2006. Ian C. Durant, vice president for finance and chief financial officer of Sea Containers Ltd., disclosed of in a regulatory filing with the Securities and Exchange Commission that certain assets of the Debtors and their non-debtor subsidiaries may be sold during the next twelve months, which may result in additional available cash for the Debtors. Period Forecast Closing Cash ------ --------------------- October 2006 US$49,100,000 November 2006 48,200,000 December 2006 49,800,000 January 2007 48,100,000 February 2007 43,900,000 March 2007 38,200,000 April 2007 34,700,000 May 2007 29,900,000 June 2007 24,100,000 July 2007 13,600,000 August 2007 10,600,000 September 2007 6,200,000 October 2007 3,600,000 A full-text copy of the Consolidated Cash Flow Forecast is available for free at http://researcharchives.com/t/s?152f About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SERVKO ELECTRICAL: Calls In Liquidators from Poppleton & Appleby ---------------------------------------------------------------- Stephen James Wainwright and Stephen Lord of Poppleton & Appleby were appointed Joint Liquidators of Servko Electrical Limited (formerly J Wright Electrical Services Limited) on Nov. 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: Servko Electrical Limited Quantas House Rooley Lane Bradford West Yorkshire BD4 7SJ United Kingdom Tel: 01274 689 696 SEWARD DEVELOPMENTS: Appoints Begbies Traynor as Administrators --------------------------------------------------------------- David Paul Hudson and Timothy John Edward Dolder of Begbies Traynor were appointed joint administrators of Seward Developments Ltd. (Company Number 04985123) on Nov. 13. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Seward Developments Ltd. can be reached at: 121 London Road Marks Tey Colchester Essex CO6 1EB United Kingdom Tel: 01206 212 040 Fax: 01206 212 041 SISTERLARK LIMITED: Names Administrators from DTE ------------------------------------------------- A. Clifton and N. A. Bennett of DTE Leonard Curtis were appointed joint administrators of Sisterlark Ltd. (t/a YellowPatter Sheet Metal Products) (Company Number 04301361) on Nov. 10. 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. Sisterlark Ltd. can be reached at: Unit N Chantry Lane Storrington Pulborough West Sussex RH20 4TA United Kingdom Tel: 01903 748 000 Fax: 01903 742 668 SOUTH COAST: Claims Filing Period Ends Dec. 21 ---------------------------------------------- Creditors of South Coast Access Limited have until Dec. 21 to prove their debts by sending written statements of the amount they claim to be due to them from the Company to appointed Joint Liquidators Frank Wessely and Peter James Hughes-Holland at: Vantis 81 Station Road Marlow Buckinghamshire SL7 1NS United Kingdom The company can be reached at: South Coast Access Limited Lovells Yard Lynch Lane Weymouth Dorset DT4 9DU United Kingdom Tel: 01305 839 999 TITAN EUROPE: Fitch Keeps Low-B Ratings on GBP4.2-Million Notes --------------------------------------------------------------- Fitch Ratings upgraded Titan Europe 2004-1 Plc's Class B to D notes due 2013 and affirmed the rest: -- GBP64.9 million Class A (XS0205704405) affirmed at AAA; -- GBP0.05 million Class X (XS0205719692) affirmed at AAA; -- GBP9.7 million Class B (XS0205720195) upgraded to AAA from AA; -- GBP13.8 million Class C (XS0205720609) upgraded to AAA from A; -- GBP6.9 million Class D (XS0205721839) upgraded to BBB+ from BBB-; -- GBP2.8 million Class E (XS0205722480) affirmed at BB; and -- GBP1.4 million Class F (XS0205722720) affirmed at B. The rating actions reflect the increased subordination and the expected redemption of the largest loan and subsequent sequential principal allocation as well as the performance of the two remaining loans. The borrower of the largest loan, the GBP71.3 million Audras loan, is in the final stages of selling the underlying property. The loan will be prepaid and the principal will be used to redeem Class A in full and Class B in part in January 2007. This will further increase the subordination levels. The pool will then comprise of only two of the original five loans. The GBP16.1 million Kandahar loan is secured on the Salters Court Shopping Centre in Droitwich and the GBP12 million CSAM loan is secured on a portfolio of seven commercial properties across the U.K. The loan-to-value of the CSAM loan stood at a low 30.8% and in October 2006, the interest coverage ratio was strong at 2.6x. On the other hand, Kandahar loan had a LTV of 67% and an ICR of 1.2x as at October 2006. Although the latter's LTV is considered high, this is an improvement from the original LTV of 87% after the Salters Court Shopping Centre was re-valued at GBP26 million in April 2006, an increase of GBP8 million. The Kandahar loan's ICR on a forward 12 month basis is expected to fall to 1.04x, breaching the covenant of 1.05x. However, this excludes additional income, e.g. rent from tenants staying in the property after lease expiry and this breach can easily be topped up from the available GBP1-million escrow fund. The borrower has so far met all obligations and is expected to continue to do so. Several new leases with current rent-free periods will start generating income in 2007 and therefore an improvement will be expected at this time. There is an available funds cap on the Classes E and F. Excess spread is used to pay interest on Class X. So far, GBP1.3 million of excess spread was generated. TOTAL MOVE: Taps Menzies as Joint Administrators ------------------------------------------------ Andrew Gordon Stoneman and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of Total Move Solution Ltd. (Company Number 05038812) on Nov. 13. 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. Total Move Solution Ltd. can be reached at: Mudlands Industrial Estate Manor Way Rainham Essex RM13 8RH United Kingdom Tel: 020 8984 0000 Fax: 020 8984 0010 UNITED POINT: Names Jeffrey Mark Brenner Liquidator --------------------------------------------------- Jeffrey Mark Brenner of B & C Associates was appointed Liquidator of United Point of Purchase Limited on Nov. 10 for the creditors' voluntary winding-up procedure. The company can be reached at: Interserve House Ruscome Park Ruscome Lane Twyford Reading RG10 9JU Berkshire United Kingdom Tel: 0118 934 3777 Fax: 0118 934 3667 V-LAN LIMITED: Appoints DTE Leonard as Joint Administrators ----------------------------------------------------------- P. D. Masters and A. Clifton of DTE Leonard Curtis were appointed joint administrators of V-Lan Ltd. (Company Number 04408463) on May 9. 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. V-Lan Ltd. can be reached at: The Lodge Trinity House Trinity Street Leamington Spa Warwickshire CV32 5YN United Kingdom Tel: 01926 452 122 Fax: 01926 425 489 VANILLE DIRECT: Brings In BDO Stoy to Administer Assets ------------------------------------------------------- Simon Edward Jex Girling and Mark Peter George Roach of BDO Stoy Hayward LLP were appointed joint administrators of Vanille Direct Ltd. (Company Number 05179815) on Nov. 13. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. Vanille Direct Ltd. can be reached at: 337 Bath Road Slough Berkshire SL1 5PR United Kingdom Tel: 0117 934 2800 WHITES & ELLAND: Brings In Joint Liquidators from Kroll ------------------------------------------------------- Robert A. H. Maxwell and Stuart C. E. Mackellar of Kroll were appointed Joint Liquidators of Whites & Elland Limited on Nov. 14 for the creditors' voluntary winding-up procedure. Headquartered in Harrogate, England, Whites & Elland Limited -- http://www.whitesandelland.co.uk/-- offers painting and decorating services for domestic commercial and industrial in both interior and exterior fields. WILLIAM DOBSON: Creditors Confirm Liquidators' Appointment ---------------------------------------------------------- Creditors of William Dobson & Partner Limited confirmed Nov. 10 the appointment of Gordon S. Goldie and Allan David Kelly of Tait Walker as the company's Liquidators. Headquartered in Newcastle upon Tyne, England, William Dobson & Partner Limited -- http://www.dobsonelectricals.co.uk/-- offers a wide range of services including design, installation, testing, commissioning and maintenance of electrical equipment such as security alarm systems, CCTV, personal attack systems, fire alarm systems, among others. * BOOK REVIEW: Trump: The Saga of America's Most Powerful Real Estate Baron -------------------------------------------------------------- Author: Jerome Tuccille Publisher: Beard Books Paperback: 288 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587982234/internetbankru pt This is the remarkable unfinished saga of an extraordinary American. When this book was first published in 1985, Donald J. Trump was scarcely into his fourth decade. He made the leap from local New York City boy who had made good to a national and even world-prominent figure. It all started some 10 years earlier when Trump gambled that New York City would rebound from its financial morass. People laughed and scoffed at that time, but he was right, and he has profited mightily from his faith and vision. This is compelling reading about the inside machinations of his glamorous world. ********* 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 * * *