/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061127.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 Monday, November 27, 2006, Vol. 7, No. 235 Headlines A U S T R I A A.M.M. LLC: Wiener Neustadt Court Orders Business Shutdown NRG TRADING: Creditors' Meeting Slated for December 13 STAHLBAU BEWEHRUNGSSTAHL: Creditors' Meeting Slated for Dec. 6 TRUCK & WOOD: Creditors' Meeting Slated for November 30 ZAGAR LLC: Creditors' Meeting Slated for December 6 B U L G A R I A * Fitch Affirms Municipality of Blagoevgrad's Rating at BB+ F R A N C E AUTOCAM CORP: May Not Comply with Covenants on December 2006 CA INC: Declares US$0.04 Per Share Quarterly Cash Dividend G E R M A N Y ASTRANS LOGISTICS: Claims Registration Ends December 6 BORSCHEL ELECTRONIC: Claims Registration Ends December 1 DETTERBECK BETEILIGUNGEN: Claims Registration Ends December 8 E-MAC DE: Moody's Rates EUR3.5-Million Class F Notes at (P)Ba3 E-MAC DE: S&P Rates EUR3.5-Million Class F Notes at BB EDMUND DIEHL: Claims Registration Ends December 8 FIS FULDA: Claims Registration Ends December 4 GRUEN BAUTRAGER: Claims Registration Ends December 6 HORST KRAUSE: Creditors' Meeting Slated for December 1 ILTIFAT GMBH: Creditors' Meeting Slated for December 8 NRG ENERGY: Completes US$1.35 Billion Hedge Reset Transactions PROMISE COLOR: S&P Places Low-B Ratings on CreditWatch Positive PROMISE XXS: S&P Puts Low-B Ratings on CreditWatch Positive RICHARD RAUBER: Claims Registration Ends December 7 TRIMON AG: Claims Registration Ends December 6 TRIPOS INC: Selling All of Unit's Assets to Vector Capital I R E L A N D INTERPUBLIC GROUP: Earns US$5.8 Million in Third Quarter 2006 INTERPUBLIC GROUP: S&P Rates Proposed Floating Rate Notes at B I T A L Y HILTON HOTELS: Declares US$0.04 Per Share Dividend HILTON HOTELS: Seeks Modification to Greater Portland Judgment INTERNATIONAL PAPER: Earns US$201 Million in 2006 Third Quarter PARMALAT SPA: Credit Suisse, BNL Settle Suit for US$50 Million K A Z A K H S T A N ADANI-SK: Creditors Must File Proofs of Claims by January 5 AK-BIDAI CJSC: Creditors' Proofs of Claims Due December 22 ALEMBEK LLP: Proofs of Claim Deadline Slated for January 5 INTERSOFT-EKIBASTUZ: Claims Registration Ends December 22 KAZAKHSTANSKAYA FINANSOVAYA: Creditors' Claims Due January 5 MUNAI REMONT: Claims Filing Period Ends December 22 NAFTO-CENTRE LLP: Astana Court Starts Bankruptcy Procedure PAVLODAR TRANS: Claims Registration Ends December 22 PULSAR INTERNATIONAL: Claims Filing Period Ends December 22 STROY ALLIANCE: Proof of Claim Deadline Slated for January 3 SUPER-BAI LLP: Creditors Must File Claims by December 22 TAMIRIS INTERNATIONAL: Creditors' Claims Due January 5 TRANSSFERA LLP: Claims Filing Period Ends January 5 TVK LLP: East Kazakhstan Court Opens Bankruptcy Proceedings VIVAT LLP: Creditors Must File Proofs of Claims by January 5 K Y R G Y Z S T A N EURO VISION: Creditors' Proofs of Claims Due January 12 TRANS-ALTYN-SERVICE: Claims Registration Ends January 12 L U X E M B O U R G MDM DPR: Parent Issues Five-Year Dual-Tranche Series 2006 Notes MILLICOM INT'L: Moody's Lifts Ratings on Robust Performance N E T H E R L A N D S PHELPS DODGE: Freeport Takeover Depends on Commodity Prices X5 RETAIL: Completes Acquisition of OOO Metronom AG P O L A N D AUTOCAM CORP: May Not Comply with Covenants on December 2006 R U S S I A AIF CJSC: Court Names M. Mulyukov as Insolvency Manager APASTOVO-AGRO-KHIM-SERVICE: Names I. Gilyazov to Manage Assets BARNAULSKIY MEAT: Names L. Prikhod'ko as Insolvency Manager BAYMAK-MIXED FODDER: Bankruptcy Hearing Slated for December 4 GOLDEN TELECOM: Acquires Corus ISP for US$1.2 Million KARAKULSKOYE CJSC: Bankruptcy Hearing Slated for January 18 KRASNOYARUZHSKIY BACON: Names A. Myakotin to Manage Assets MDM BANK: Issues Five-Year Dual-Tranche Series 2006 Notes MENDELEEVSKIY ELEVATOR: Names V. Shumilov to Manage Assets MOBILE TELESYSTEMS: Assails Bitel's Press Release ROMANOVSKIY MEAT: Names L. Prikhod'ko to Manage Assets ROSNEFT OIL: Inks Sakhalin Development Deal with BP ROSNEFT OIL: Repays US$150-Million Five-Year Eurobond STAL-SNAB LLC: Court Starts Bankruptcy Supervision Procedure TAMYR CJSC: Court Starts Bankruptcy Supervision Procedure TELEPORT-TP CJSC: Bankruptcy Hearing Slated for February 27 TROITSKIY COMBINE: Court Names G. Popov to Manage Assets URALSVYAZINFORM OAO: Fitch Revises Ratings' Outlook to Stable USTYANSKOYE BREAD: Court Names A. Zamaraev to Manage Assets VNESHTORGBANK JSC: Launches Bankcard Servicing of UnionPay X5 RETAIL: Completes Acquisition of OOO Metronom AG YURYEVETSKIY BREWERY: Names A. Gataulin to Manage Assets S P A I N IM GRUPO: S&P Junks Rating on EUR30-Million Class E Notes INTERPUBLIC GROUP: Earns US$5.8 Million in Third Quarter 2006 INTERPUBLIC GROUP: S&P Rates Proposed Floating Rate Notes at B S W E D E N HILTON HOTELS: Declares US$0.04 Per Share Dividend HILTON HOTELS: Seeks Modification to Greater Portland Judgment S W I T Z E R L A N D HERCULES INC: Earns US$34.2 Million in Quarter Ended Sept. 30 U K R A I N E GOLDEN TELECOM: Acquires Corus ISP for US$1.2 Million MOBILE TELESYSTEMS: Assails Bitel's Press Release PRIVATBANK CJSC: Fitch Keeps Issuer Default Rating at B VNESHTORGBANK JSC: Launches Bankcard Servicing of UnionPay U N I T E D K I N G D O M ALBION SPRING: Creditors' Meeting Slated for December 4 AMBER COMMUNICATIONS: Appoints Gerald Irwin as Liquidator ANDREW KELLARD: Creditors' Meeting Slated for November 30 ASPECT VEHICLE: Names David Norman Kaye Liquidator ATRIUM TRAINING: Creditors' Meeting Slated for November 30 BODY ULTIMATE: Brings In Liquidators from Wilson Field BRITISH AIRWAYS: Inks Code Share Pact with Caribbean Airlines BROWNE TRANSPORT: Claims Filing Period Ends December 9 CA INC: Declares US$0.04 Per Share Quarterly Cash Dividend CROWN HOLDINGS: Seeks Noteholders' OK on Add'l US$200-Mil. Debt CT PACKAGING: Creditors' Meeting Slated for December 4 DESIGNLAB SYSTEMS: Creditors' Claims Due Dec. 13 DTE SOFTWARE: Liquidator Sets December 13 as Claims Bar Date ENRON CORP: Wants Energen, Et Al. Settlement Pacts Approved ENRON CORP: Seeks Approval for T. Thorn Settlement Agreement FEDERAL-MOGUL: Judge Fitzgerald Okays DIP Credit Pact Amendment FORD CREDIT: Fitch Rates US$59-Million Class D Notes at BB+ GATEWAY CARAVANS: Brings In Lines Henry as Joint Administrators GLASS FIBRE: Hires Liquidator from Jackson Gregory & Co. GOLDEN FALLS: Creditors' Claims Due December 15 GREENLAKE LEISURE: Taps Tenon Recovery to Administer Assets GSM LOGISTICS: Joint Liquidators Take Over Operations HILTON HOTELS: Files Request to Modify Partial Final Judgment I C REFURBISHMENTS: Appoints Alan Simon to Liquidate Assets IMMEL PUBLISHING: Taps Kevin Goldfarb to Liquidate Assets INTERFACE INC: Financial Recovery Cues Moody's to Lift Ratings INTUWAVE LIMITED: Appoints Baker Tilly as Joint Administrators JANE VALLERO: Appoints Liquidator from Kallis & Co. KRISPY KREME: Posts US$135.8MM Net Loss in Year Ended Jan. 2006 LIZARD DEVELOPMENTS: Hires Liquidator from Ward & Co. M S A CONSTRUCTION: Brings In Liquidator from Pattinsons PHELPS DODGE: Freeport Takeover Depends on Commodity Prices PNEU-TECH LIMITED: Ian. C. Brown Leads Liquidation Procedure PRUDENTIAL ASSURANCE: Announces Final Implementation of Scheme QUAY CONTACT: Hires Begbies Traynor to Administer Assets R DAVIES: Claims Registration Ends December 10 SEA CONTAINERS: Court Okays Sidley Austin as Bankruptcy Counsel SEA CONTAINERS: Court Okays Kirkland & Ellis As Special Counsel SHAY FURNITURE: Creditors Confirm Liquidator's Appointment SL PROMOTIONS: BDO Stoy Appointed as Joint Administrators STENOCHAIR LIMITED: Names Liquidators from BRI Business Recovery TRIPOS INC: Selling All of Unit's Assets to Vector Capital UIC INSURANCE: Filing of Scheme Claims Ends March 7 ********* ============= A U S T R I A ============= A.M.M. LLC: Wiener Neustadt Court Orders Business Shutdown ---------------------------------------------------------- The Land Court of Wiener Neustadt entered an order Oct. 4 shutting down the business of LLC A.M.M. (FN 127035t). Court- appointed property manager Georg Rupprecht 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. Georg Rupprecht Hauptplatz 9-13 2500 Baden bei Vienna, Austria Tel: 02252/86580 Fax: 02252/86580-3 E-mail: rupprecht@lexacta.com Headquartered in Tribuswinkel-Oeynhausen, Austria, the Debtor declared bankruptcy on Sept. 28 (Bankr. Case No. 11 S 99/06d). NRG TRADING: Creditors' Meeting Slated for December 13 ------------------------------------------------------ Creditors owed money by LLC NRG Trading (FN 222088a) are encouraged to attend the creditors' meeting at 10:40 a.m. on Dec. 13 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Leoben Hall IV 1st Floor Leoben, Austria Headquartered in Leoben, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No. 17 S 77/06a). Christian Puchner serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Christian Puchner Max-Tendler-Road 22 8700 Leoben, Austria Tel: 03842-44551 Fax: 03842-44551-22 E-mail: office@ra-puchner.at STAHLBAU BEWEHRUNGSSTAHL: Creditors' Meeting Slated for Dec. 6 -------------------------------------------------------------- Creditors owed money by LLC Stahlbau Bewehrungsstahl (FN 261366m) are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 6 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No. 5 S 134/06z). Ulrike Bauer serves as the court-appointed property manager of the bankrupt estate. Michael Rebasso represents Dr. Bauer in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Ulrike Bauer c/o Mag. Michael Rebasso Elisabethstrasse 26 1010 Vienna, Austria Tel: 5877820 Fax: 587 78 20 9 E-mail: ra.bauer@aon.at TRUCK & WOOD: Creditors' Meeting Slated for November 30 ------------------------------------------------------- Creditors owed money by LLC Truck & Wood Transporte (FN 65426s) are encouraged to attend the creditors' meeting at 9:30 a.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 Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Neusiedl, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No. 10 S 90/06y). Alfred Steinbuch serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Alfred Steinbuch Herrengasse 7 2620 Neunkirchen, Austria Tel: 02635/630430 Fax: 02635/6304322 E-mail: dr.steinbuch@csg.at ZAGAR LLC: Creditors' Meeting Slated for December 6 --------------------------------------------------- Creditors owed money by LLC Zagar (FN 89129y) are encouraged to attend the creditors' meeting at 9:15 a.m. on Dec. 6 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No. 5 S 135/06x). Kurt Freyler serves as the court-appointed property manager of the bankrupt estate. Hans Rant represents Dr. Freyler in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Kurt Freyler c/o Dr. Hans Rant Seilerstatte 5 1010 Vienna, Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at =============== B U L G A R I A =============== * Fitch Affirms Municipality of Blagoevgrad's Rating at BB+ ----------------------------------------------------------- Fitch Ratings affirmed the Municipality of Blagoevgrad's international foreign and local currency ratings at BB+ and Short-term foreign currency rating at B. The Outlook is Stable. The ratings reflect the municipality's continued debt-free position, its still limited contingent liabilities and its prudent budgetary management. However, they also take into account Blagoevgrad's limited budgetary flexibility and high expenditure needs. The Stable Outlook reflects Fitch's expectations that Blagoevgrad will continue with its prudent management and will not contract major financial liabilities in the medium term. Fitch will monitor Bulgaria's accession and the decentralization process, which may prove positive for the municipality's credit quality in the medium term. Blagoevgrad has not contracted any debt in the last six years and has mainly covered its investments through assets sales, allowing the city to report balanced accounts from 2003 to 2005. The availability of new sources related to the EU cohesion funds and additional transfers from the government should allow the city to carry out its investments with limited financing requirements over the next three years. Fitch understands that the main projects of the city's investments plan of around BGN85 million over 2007-2009 are subject to the availability of state transfers and therefore the agency does not expect any major increase in municipal liabilities. EU accession will facilitate the further development of Blagoevgrad's economy and the narrowing of its infrastructural gap with the available cohesion funds. However, in Fitch's view the city's infrastructure is more adequate than other Bulgarian municipalities due to the presence of higher education centers with two universities and good transportation networks. In addition, any further development of the city's commercial and industrial activities in line with the booming private property market, as it happened in 2006, could prove positive for the city's accounts. They may trigger further growth in local tax bases, feeding operating revenue. Blagoevgrad budgetary flexibility is tight by international standards. Operating balance on average was slightly negative over the 2000-2005 period. Blagoevgrad's revenue is highly dependent on state-redistributed tax for state-delegated responsibilities. This leaves it little leeway for financing additional expenses and makes revenue outturns relatively unpredictable. Hence the municipality's ability to cope with additional spending needs is subject to decisions made by central government. This has been recently mitigated by the considerable local tax proceeds following the devolution of tax collection responsibility to the municipality. Further, the decentralization process could prove positive for the city in the medium term by allowing more revenue flexibility for Bulgarian local governments. In addition, the municipality remains prudent in its budgeting process. Additional expenses are only decided when sufficient revenue is collected. The city intends to avoid any increase in its indirect liabilities in the medium term by closely controlling its shareholdings in municipal companies. The municipality of Blagoevgrad is located in South Western Bulgaria. Its population totaled 83,750 in 2005. As with other Bulgarian municipalities, it carries out mandatory state- delegated and municipal responsibilities. It is therefore mainly active in education, healthcare, social aid and municipal public services and infrastructure. =========== F R A N C E =========== AUTOCAM CORP: May Not Comply with Covenants on December 2006 ------------------------------------------------------------ Autocam Corp. disclosed of in a regulatory filing with the U.S. Securities and Exchange Commission that based on its current projections, it might be unable to comply with the financial covenants set in its senior credit facilities and second lien credit facility as of Dec. 31, 2006. The company however said that it was in compliance with the covenants as of Sept. 30, 2006. The company's senior credit facilities and second lien credit facility's financial covenants are tested at each calendar quarter-end. Credit Facilities As of Sept. 30, 2006, the company says that it borrowed US$23.1 million under its revolving credit facilities to fund liquidity needs as cash generated from operations was insufficient to meet the company's requirements. As of Sept. 30, 2006, the company had US$17.3 million remaining under its revolving credit facilities and its senior credit facilities permits the company to factor without recourse an additional US$9.5 million of trade receivables. Subsequent to Sept. 30, 2006, the company discloses that it borrowed US$15.8 million of funds available under the revolving credit facilities, and as of Nov. 13, 2006, had cash holdings of US$13.1 million. The company says that since it only had US$1.2 million remaining in its revolving credit facilities as of Nov. 13, 2006, the company's short-term liquidity needs must be met primarily from cash on hand and cash generated from operations. The company relates that these sources could be insufficient to meet its debt service and day-to-day operating expenses during the fourth quarter. The company discloses that the interest payments on its senior subordinated notes are due Dec. 15, 2006, while interest payments on its senior credit facility and second lien credit facility are due Dec. 29, 2006. Failure to make these payments within the applicable 30-day grace period in the case of the senior subordinated notes and the applicable five-day grace period under the senior credit facilities and second lien credit facility, the company says, would constitute events of default under these notes and credit facilities. Options The company discloses that in order to improve its near-term liquidity, it is exploring a variety of options, which include: * reducing investment in working capital; * selling idle equipment; and * securing other sources of capital for its operations. The company further discloses that it intends to engage in discussion with its senior and second lien lenders to seek further amendments to its senior credit facilities and second lien credit facility to provide for covenant relief. It also intends to engage in restructuring discussion with holders of the company's senior subordinated notes. The company says it cannot assure that the discussions with its lenders will be successful. If the company is not successful, then upon an event of default, the senior and second lien lenders will have the ability to exercise all of their rights, including requiring the amounts outstanding under the senior credit facilities and the second lien credit facility to become due and payable. Headquartered in Kentwood, Michigan, Autocam Corporation -- http://www.autocam.com/-- is a wholly-owned subsidiary of Titan Holdings, Inc. Autocam manufactures extremely close tolerance precision-machined, metal alloy components, sub-assemblies and assemblies, primarily for performance and safety critical automotive applications. The company provides these products from its facilities in North America, Europe, South America and Asia to some of the world's largest suppliers to the automotive industry. These suppliers include Autoliv, Delphi Corporation, Robert Bosch GmbH, Siemens VDO, TRW Automotive, Inc. and ZF Friedrichshafen AG. The company has operations in Brazil, France and China. * * * As reported in the TCR-Europe on Nov. 24, 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-'. CA INC: Declares US$0.04 Per Share Quarterly Cash Dividend ---------------------------------------------------------- CA Inc.'s board of directors has declared a regular, quarterly cash dividend of US$0.04 per share. The dividend will be paid on Dec. 29, 2006, to stockholders of record at the close of business on Dec. 15, 2006. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries including France, Germany, Italy and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Nov. 9, 2006, Moody's Investors Service affirmed CA's Ba1 senior unsecured rating and negative rating outlook following the company's announcement of fiscal second quarter financial results and fiscal 2007 revised guidance. In a TCR-Europe report on Oct. 10, 2006, Moody's confirmed its Ba1 Corporate Family Rating for CA Inc. in connection with Moody's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors. Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on CA Inc., and removed them from CreditWatch where they were placed on July 5, with negative implications. S&P said the outlook is negative. ============= G E R M A N Y ============= ASTRANS LOGISTICS: Claims Registration Ends December 6 ------------------------------------------------------ Creditors of Astrans Logistics GmbH have until Dec. 6 to register their claims with court-appointed provisional administrator Guenter Trutnau. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.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 Essen Hall 293 2nd Floor Principal Establishment Gelber Bereich Zweigertstr. 52 45130 Essen, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Essen opened bankruptcy proceedings against Astrans Logistics GmbH on Oct. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Astrans Logistics GmbH Attn: Anton Schmirler, Manager Knippenburg 38 46238 Bottrop, Germany The administrator can be contacted at: Dr. Guenter Trutnau III. Hagen 30 45127 Essen, Germany Tel: (0201) 1095-3 BORSCHEL ELECTRONIC: Claims Registration Ends December 1 -------------------------------------------------------- Creditors of Borschel Electronic International Ltd. have until Dec. 1 to register their claims with court-appointed provisional administrator Olaf Boerner. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Dec. 14, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Kassel opened bankruptcy proceedings against Borschel Electronic International Ltd. on Sept. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Borschel Electronic International Ltd. Attn: Andreas Borschel, Manager Ziegelei 7 34260 Kaufungen, Germany The administrator can be contacted at: Olaf Boerner Br�der-Grimm-Place 4 D-34117 Kassel, Germany Tel: 0561/71200-25 Fax: 0561/71200-69 E-mail: boerner@branomo.de DETTERBECK BETEILIGUNGEN: Claims Registration Ends December 8 ------------------------------------------------------------- Creditors of Detterbeck Beteiligungen GmbH have until Dec. 8 to register their claims with court-appointed provisional administrator Joachim Buettner. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Jan. 10, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Detterbeck Beteiligungen GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Detterbeck Beteiligungen GmbH Attn: Andreas Detterbeck and Stipp Juric, Manager Mittelweg 114b 20149 Hamburg, Germany The administrator can be contacted at: Joachim Buettner Osdorfer Highway 230 22549 Hamburg, Germany E-MAC DE: Moody's Rates EUR3.5-Million Class F Notes at (P)Ba3 -------------------------------------------------------------- Moody's Investors Service assigned provisional long-term credit ratings to the Notes to be issued by E-MAC DE 2006-II B.V.: -- EUR151,000,000 Senior Class A1 Mortgage-Backed Notes due February 2048: (P)Aaa; -- EUR465,700,000 Senior Class A2 Mortgage-Backed Notes due February 2058: (P)Aaa; -- EUR35,000,000 Mezzanine Class B Mortgage-Backed Notes due February 2058: (P)Aa1; -- EUR24,500,000 Junior Class C Mortgage-Backed Notes due February 2058: (P)Aa3; -- EUR14,000,000 Subordinated Class D Mortgage-Backed Notes due February 2058: (P)A3; -- EUR9,800,000 Subordinated Class E Mortgage-Backed Notes due February 2058: (P)Baa2; and -- EUR3,500,000 Subordinated Class F Notes due February 2058: (P)Ba3. E-MAC DE 2006-II is the third transaction securitizing mortgage loans originated by GMAC RFC Bank GmbH. Many of the structural features are similar to the previous E-MAC DE 2005-I (closed in June 2005) and E-MAC DE 2006-I (closed in June 2006) transactions. GMAC Bank started its business in January 2004 and has since then originated residential mortgage loans granted to German individuals. The servicing of the loan portfolio will be done by Kreditwerk Hypotheken-Management GmbH while the special servicing of delinquent loans will be conducted by Rechtsanw�lte Paulus Westerwelle. Around 19% (EUR100 million) of the pool consist of non-disbursed mortgage loans. This type of loans were also part of the previous transactions, however in previous transactions the initial purchase price for the respective loan was only paid by the Issuer once the loan was fully drawn. During the interim period the initial purchase price was held in the Construction Loan Account in the name of the Issuer. For E-MAC DE 2006-II, the disbursed part of the loan is paid for by the Issuer at closing. The initial purchase price for the non-disbursed part of the loans is put in the Construction Loan Account in the name of the Issuer. The non-disbursed loan part needs to be fully drawn within a maximum period of one year after origination of each loan. If a loan is not fully disbursed after one year, the loan will be bought back by GMAC Bank. Finally an additional temporary Construction Loan Reserve Account of EUR4.8m supports the structure for the first year. Similar to Dutch E-MAC transactions, part of the proceeds (approx. EUR150 million) of the A1, A2, B, C, D and E Notes will be retained by the Issuer and will be used to purchase a further pool of mortgage loans within the first three months after closing. Any amounts that are retained for pre-funding will, to the extent not applied to the purchase of further loans, be applied to the redemption of the Notes in February 2007. The Class F Notes will fund the initial balance of the Reserve Fund and will be repaid by available excess spread on the interest payment date in November 2008 and thereafter. The issuer enters into an interest swap agreement in order to hedge its interest rate exposure due to the mismatch of the fixed interest received under the securitized loans and the floating interest payments due under the Notes. Until November 2010 any repayments received under the mortgage loans will be used to redeem the Notes in sequential order starting with the Class A1 Notes. In and after November 2010, the target amortization criteria must be met in order to apply principal funds on a targeted amortization basis. The transaction benefits from several positive features are: (1) the protection against losses through the subordination of the junior tranches and the availability of excess spread to cover losses, (2) the Reserve Account, which is funded at closing at EUR3.5m (0.5% of initial balance of A1, A2, B, C, D and E Notes) and will be built up to EUR8.4m (1.2% of initial balance of A1, A2, B, C, D and E Notes) by trapping of available excess spread, and (3) the availability of a liquidity facility of the higher of 3% of current outstanding balance of A1, A2, B, C, D and E Notes and 0.6% of initial balance of A1, A2, B, C, D and E Notes at closing provided by The Royal Bank of Scotland plc (Aa1, Prime-1). Less favorable features and their mitigants are, inter alia, that: (1) the pool consists of high LTV loans which might lead to an above market average default frequency of the borrowers. In addition, some regional concentrations in excess of the German benchmark exist in certain federal states. All these features have improved compared to the previous two E-MAC DE transactions (E-MAC DE 2005-I and E-MAC DE 2006-I), but were taken into account by Moody's loan-by-loan analysis and resulted in penalties; (2) almost 19% of the pool are comprised of non-disbursed mortgage loans. For the first time in an E-MAC DE structure, the initial purchase price of the drawn amount of partially disbursed loans is paid at closing at the transaction by the Issuer. The non-disbursed amounts will be kept in the Construction Loan Account in the name of the Issuer. In previous transactions the initial purchase price related to partially disbursed loans was only paid once the respective loans were disbursed completely. Residual legal uncertainties exist with this set-up, however, structural features (limited exposure, buy-back provision and Construction Loan Reserve Account) and a legal opinion mitigate the risk; and (3) about 22% of the final pool amount is pre-funded, therefore the characteristics of the loans to be added could be different to the preliminary pool. This risk is mitigated by the eligibility criteria for the pre- funding period. The provisional 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 at par on or before the rated final legal maturity date. Moody's issues provisional ratings in advance of the final sale of securities, but these ratings represent only 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. E-MAC DE: S&P Rates EUR3.5-Million Class F Notes at BB ------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary credit ratings to the mortgage-backed floating-rate notes to be issued by E-MAC DE 2006-II B.V., a special purpose entity. This transaction is structured as a true-sale RMBS. The collateral is a pool of mortgage loans, which are secured by residential properties in Germany. The originator is GMAC-RFC Bank GmbH. In this transaction, there is a significant percentage of construction loans in the pool. These are loans that are only partially disbursed to date, and where future disbursements depend on the progress of the building construction. There is an additional cash reserve to cover the additional risk associated with these loans. Ratings List E-MAC DE 2006-II B.V. EUR703.5 Million Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ----------------- A1 AAA 151 A2 AAA 465.7 B AA 35 C A 24.5 D BBB 14 E BBB- 9.8 F (1) BB 3.5 (1) The proceeds of the class F notes will be used to fund the cash reserve fund. EDMUND DIEHL: Claims Registration Ends December 8 ------------------------------------------------- Creditors of Edmund Diehl GmbH have until Dec. 8 to register their claims with court-appointed provisional administrator Carsten Koch. Creditors and other interested parties are encouraged to attend the meeting at 2:30 a.m. on Jan. 10, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Siegen Hall 009 Ground Floor Principal Establishment Berliner Road 21-22 57072 Siegen, 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 Siegen opened bankruptcy proceedings against Edmund Diehl GmbH on Oct. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Edmund Diehl GmbH Ernst-Heinkel-Str. 6 57299 Burbach, Germany Attn: Guenter Diehl, Manager Heister 13 57299 Burbach, Germany The administrator can be contacted at: Carsten Koch Mauerstr. 1 35781 Weilburg, Germany FIS FULDA: Claims Registration Ends December 4 ---------------------------------------------- Creditors of FIS Fulda Immobilienservice GmbH have until Dec. 4 to register their claims with court-appointed provisional administrator Sandra Mitter. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Jan. 15, 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 Fulda Room 3100 District Court Building Koenigstrasse 38 36037 Fulda, 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 Fulda opened bankruptcy proceedings against FIS Fulda Immobilienservice GmbH on Sept. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: FIS Fulda Immobilienservice GmbH Attn: Hans-Georg Niederhausen, Manager Leipziger Str. 77 36037 Fulda, Germany The administrator can be contacted at: Sandra Mitter Kanzlei Leonhardt, Westhelle & Partner Wilhelmshoeher Avenue 270 34131 Kassel, Germany Tel: 0561/3166-311 Fax: 0561/3166-312 GRUEN BAUTRAGER: Claims Registration Ends December 6 ---------------------------------------------------- Creditors of Gruen Bautrager GmbH have until Dec. 6 to register their claims with court-appointed provisional administrator Ulrich Kuehn. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Tuebingen Hall 208 2nd Floor Branch Office Schulberg 14 72074 Tuebingen, 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 Tuebingen opened bankruptcy proceedings against Gruen Bautrager GmbH on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gruen Bautrager GmbH Attn: Stefanie Stein, Manager Sitz in Nagold, Germany The administrator can be contacted at: Michael Hubberten Echazufer 24 72764 Reutlingen, Germany HORST KRAUSE: Creditors' Meeting Slated for December 1 ------------------------------------------------------ The court-appointed provisional administrator for Horst Krause Grosshandel fuer Raucherbedarf GmbH, Ruediger Wienberg, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:05 a.m. on Dec. 1. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on March 2, 2007, at the same venue. Creditors have until Jan. 2, 2007 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Horst Krause Grosshandel fuer Raucherbedarf GmbH on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Horst Krause Grosshandel fuer Raucherbedarf GmbH Saalburgstr. 3 12099 Berlin, Germany The administrator can be reached at: Ruediger Wienberg Giesebrechtstr. 1 10629 Berlin, Germany ILTIFAT GMBH: Creditors' Meeting Slated for December 8 ------------------------------------------------------ The court-appointed provisional administrator for Iltifat GmbH, Joachim Heitsch, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on Dec. 8. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on March 23, 2007, at the same venue. Creditors have until Jan. 27, 2007 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Iltifat GmbH on Sept. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Iltifat GmbH Friedrichshaller Str. 20 14199 Berlin, Germany The administrator can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin, Germany NRG ENERGY: Completes US$1.35 Billion Hedge Reset Transactions -------------------------------------------------------------- NRG Energy Inc. completed its Hedge Reset transactions reported on Nov. 3, 2006. These transactions included around US$1.35 billion in payments made to hedge counter-parties to reset the price levels to current market prices of certain legacy hedges acquired in February 2006. "We received a very favorable response from our senior credit facility holders and the high yield note market," commented Robert Flexon, NRG Executive Vice President and Chief Financial Officer. "Completing these transactions provides the company with a more appropriate level of flexibility to execute our capital allocation plans," added Flexon. The payments were funded with US$250 million from existing cash balances and the proceeds of the closing of a public offering of US$1,100 million in aggregate principal amount of 7.375% senior notes due 2017. NRG also disclosed the approval and closing of an amendment to its existing senior credit facilities. The amendments, among other things: -- permit the incurrence of the debt to fund the hedge resets described above; -- increase the amount of the synthetic letter of credit facility from US$1,000 million to US$1,500 million to support incremental hedging activity; -- increase to US$500 million the amount immediately available for unrestricted use by the company, which may be used among other things for share repurchases; and -- provide additional flexibility to NRG with respect to certain covenants governing or restricting the use of excess cash flow, new investments, new indebtedness and permitted liens. NRG Energy, Inc. (NYSE: NRG) -- http://www.nrgenergy.com/-- presently owns and operates a diverse portfolio of power- generating facilities, primarily in Texas and the Northeast, South Central and Western regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production and energy resource recovery facilities. NRG also has ownership interests in generating facilities in Australia and Germany. * * * The Troubled Company Reporter - Asia Pacific reports that Fitch Ratings affirmed the issuer default and instrument ratings of NRG Energy following the company's announced hedge reset and capital allocation program. The Rating Outlook is Stable. The Troubled Company Reporter - Asia Pacific also reports that Moody's Investors Service changed the rating outlook to negative from stable for NRG Energy, Inc. following the announcement that the company had entered into a series of transactions with counter-parties to reset and extend existing power and gas hedges at market prices, requiring a payment to counter-parties of around US$1.35 billion. Moody's also affirmed all existing ratings of NRG and assigned a B1 rating to the planned issuance of US$1.1 billion of senior unsecured notes which will be used by NRG to partially fund the counter-party payment. PROMISE COLOR: S&P Places Low-B Ratings on CreditWatch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services placed its credit ratings on certain classes of notes in the German SME CLO transactions Promise XXS 2003-1 PLC and Promise Color 2003-1 PLC on CreditWatch with positive implications. Bayerische Hypo-und Vereinsbank AG (HVB; A/Stable/A-1) originated both transactions. The CreditWatch positive placements follow an initial review of the most recent information on the transactions received by Standard & Poor's. Based on this analysis, the likelihood of a positive rating action in both transactions 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 factors of the transactions to below 50%. "Both transactions securitized static asset pools, not revolving ones. Amortization has, therefore, directly affected the enhancement levels," said credit analyst Viktor Milev. Loss allocation to date has been minimal in both transactions. The credit protection currently available to the lowest-rated notes exceeds the outstanding nominal amounts of all impaired reference obligations. 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 XXS 2003-1 PLC EUR454.55-Million Floating-Rate Credit-Linked Notes and EUR1.947-Billion Senior Credit Default Swap Ratings Placed On CreditWatch With Positive Implications Rating ------ Class To From ----- -- ---- B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E BB/Watch Pos BB F B/Watch Pos B Promise Color 2003-1 PLC EUR218.15 Million Credit-Linked Floating-Rate Notes and EUR894.45 Million For Two Senior Credit Default Swaps Ratings Placed On CreditWatch With Positive Implications Rating ------ Class To From ----- -- ---- B A/Watch Pos A C BBB/Watch Pos BBB D BB/Watch Pos BB E B/Watch Pos B PROMISE XXS: S&P Puts Low-B Ratings on CreditWatch Positive ----------------------------------------------------------- Standard & Poor's Ratings Services placed its credit ratings on certain classes of notes in the German SME CLO transactions Promise XXS 2003-1 PLC and Promise Color 2003-1 PLC on CreditWatch with positive implications. Bayerische Hypo-und Vereinsbank AG (HVB; A/Stable/A-1) originated both transactions. The CreditWatch positive placements follow an initial review of the most recent information on the transactions received by Standard & Poor's. Based on this analysis, the likelihood of a positive rating action in both transactions 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 factors of the transactions to below 50%. "Both transactions securitized static asset pools, not revolving ones. Amortization has, therefore, directly affected the enhancement levels," said credit analyst Viktor Milev. Loss allocation to date has been minimal in both transactions. The credit protection currently available to the lowest-rated notes exceeds the outstanding nominal amounts of all impaired reference obligations. 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 XXS 2003-1 PLC EUR454.55-Million Floating-Rate Credit-Linked Notes and EUR1.947-Billion Senior Credit Default Swap Ratings Placed On CreditWatch With Positive Implications Rating ------ Class To From ----- -- ---- B AA/Watch Pos AA C A/Watch Pos A D BBB/Watch Pos BBB E BB/Watch Pos BB F B/Watch Pos B Promise Color 2003-1 PLC EUR218.15 Million Credit-Linked Floating-Rate Notes and EUR894.45 Million For Two Senior Credit Default Swaps Ratings Placed On CreditWatch With Positive Implications Rating ------ Class To From ----- -- ---- B A/Watch Pos A C BBB/Watch Pos BBB D BB/Watch Pos BB E B/Watch Pos B RICHARD RAUBER: Claims Registration Ends December 7 --------------------------------------------------- Creditors of Richard Rauber GmbH Schlosserei und Metallbau have until Dec. 7 to register their claims with court-appointed provisional administrator Karsten Toetter. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Jan. 8, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Richard Rauber GmbH Schlosserei und Metallbau on Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Richard Rauber GmbH Schlosserei und Metallbau Attn: Ingrid Rauber, Manager Brandstuecken 26 22549 Hamburg, Germany The administrator can be contacted at: Karsten Toetter Speersort 4/6 20095 Hamburg, Germany TRIMON AG: Claims Registration Ends December 6 ---------------------------------------------- Creditors of Trimon AG have until Dec. 6 to register their claims with court-appointed provisional administrator Markus M. Merbecks. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Jan. 17, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 28 Law Courts Prince Road 21 Chemnitz, 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 Trimon AG on Oct. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Trimon AG Attn: Johannes Duentsch and Jens-Heinrich Marquardt, Managers Weststrasse 49 09112 Chemnitz, Germany The administrator can be contacted at: Markus M. Merbecks Ludwigstrasse 58 09113 Chemnitz, Germany E-mail: ramerbecks@aol.com TRIPOS INC: Selling All of Unit's Assets to Vector Capital ---------------------------------------------------------- Tripos Inc. has entered into a definitive agreement to sell substantially all of the assets of its Discovery Informatics business to Vector Capital. The sale, expected to close in the first quarter of 2007, is an initial step in the liquidation of Tripos. Liquidating distributions, in an amount to be determined, are expected to begin around six months after the closing of this transaction. Tripos' preliminary estimate is that there would be between US$6 million to US$12 million available for distribution to common stockholders assuming: * completion of the sale of its Discovery Informatics business to Vector, * sale of its Discovery Research business, * completion of certain other transactions, and * satisfaction of all liabilities at amounts currently estimated. "This transaction will allow the Discovery Informatics business to continue to serve its computational chemistry and enterprise research IT customers as a private company with greater access to growth capital," said Dr. John P. McAlister, president and CEO of Tripos. "Furthermore, it will enable the Discovery Informatics business to strengthen its core SYBYL� business and continue to develop innovative scientific software products and services to meet the evolving needs of the pharmaceutical and biotechnology industries." Tripos also reported that it is in discussions to sell its U.K.-based Discovery Research business and related assets. Tripos will make prompt public disclosure of any definitive agreements for the sale of part or all of its Discovery Research business. "In January 2006, we announced that Tripos had engaged investment bankers to assist the board in evaluating a range of strategic alternatives for the company, including mergers and acquisitions, becoming a private company, and separating its informatics and research businesses" Commenting on these announcements, Dr. McAlister added. "Since then, we have undertaken an intensive search for the best alternative for our stockholders, and have engaged in extensive and in some cases advanced negotiations with several parties, including strategic investors and financial investors in the United States, Asia and Europe. The board recommends that stockholders approve this transaction based upon its belief that accepting the offer from Vector and proceeding with the liquidation and dissolution of Tripos provides a greater certainty of value to our stockholders than the continued uncertainty of operating Tripos in its current form or under any other structure that we might reasonably put in place." Asset Sale and Proposed Liquidation Under the asset purchase agreement, Tripos will sell its Discovery Informatics business for around US$25.6 million in cash, subject to adjustment based upon net working capital at closing. Tripos will retain certain assets and substantially all the liabilities of the business, which must be disposed of or satisfied before any distribution to shareholders. Tripos' Board of Directors has approved the transaction and recommends that Tripos' stockholders approve the transaction at a special meeting of stockholders at a date to be determined. The transaction is subject to numerous customary terms and conditions, including approval by Tripos' stockholders and limited post-closing indemnification. Seven Hills Partners, LLC, acted as exclusive financial advisor to Tripos in this transaction. Tripos' preliminary estimate is that there would be between US$6 million and US$12 million available for distribution to common stockholders, assuming completion of the Vector transaction, sale of the Discovery Research business on the terms currently being negotiated, and sale of certain other corporate assets, such as the Missouri headquarters building, surplus U.K. investments and an investment in a private equity fund. A substantial portion of the proceeds from this transaction, in an amount that can only be estimated at this time, will be needed to pay debts, other liabilities and any corporate taxes that in a liquidation must be satisfied before stockholders can be paid. The exact timing and amount of any liquidating distributions cannot be predicted at this time. Under the agreement, Tripos will not be able to make any distributions to its common stockholders for six months after closing. The amount and timing of liquidating distributions are subject to a number of uncertainties, some of which are not fully within Tripos' control, including Tripos' ability to consummate the sale of its Discovery Informatics and Discovery Research businesses at the prices and terms currently under negotiation; the price Tripos is able to obtain for certain corporate assets that are not part of the transactions under discussion; the terms upon which Tripos is able to settle its outstanding liabilities and other liabilities that will arise in a liquidation; the costs that Tripos will incur while it remains a public company that files reports with the Securities and Exchange Commission; and the duration and expense of the liquidation process. Tripos plans to file a proxy statement with the SEC containing more detailed information about the proposed asset sale to Vector and other elements of its plan for liquidation and dissolution, including additional information about estimated proceeds to stockholders. Following SEC review of the proxy statement, Tripos will schedule a special meeting of stockholders and distribute the proxy statement. It is currently anticipated that the special meeting will be held early in 2007. Tripos, Inc. -- http://www.tripos.com/-- (Nasdaq:TRPS) combines leading-edge technology and innovative science to deliver consistently superior chemistry-research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. The company has offices in the U.K., Germany and Australia. ============= I R E L A N D ============= INTERPUBLIC GROUP: Earns US$5.8 Million in Third Quarter 2006 ------------------------------------------------------------- For the three months ended Sept. 30, 2006, Interpublic Group of Companies Inc. recorded US$5.8 million of net income on US$1.4 billion of net revenues, in contrast to a US$102.8 million net loss on US$1.4 billion of net revenues for the same period in 2005. At Sept. 30, 2006, the company's balance sheet showed US$1.9 billion in total assets and US$1.1 billion in total liabilities. A full-text copy of the company's quarterly report is available for free at http://researcharchives.com/t/s?1599 At a regularly scheduled meeting on Oct. 26, 2006, the Board of Directors of the company elected William T. Kerr as a non- management director. Mr. Kerr was also appointed to serve as a member of the Audit Committee and the Compensation Committee. Material Weakness The company has identified numerous material weaknesses in its internal control over financial reporting, Management's Assessment on Internal Control Over Financial Reporting, and Item 9A., Controls and Procedures, of its 2005 Annual Report on Form 10-K. As a result, the company has determined that its internal control over financial reporting was not effective as of Dec. 31, 2005. The company is in the process of implementing remedial measures to address the material weaknesses in its internal control over financial reporting. However, because of its decentralized structure and its many disparate accounting systems of varying quality and sophistication, the company has extensive work remaining to remedy these material weaknesses. The company has developed a comprehensive plan to remedy its material weaknesses, which was presented to the Audit Committee in July of 2006 and is in the process of being implemented. The plan provides for remediation of all the identified material weaknesses by Dec. 31, 2007. Until its remediation is completed, the company will continue to incur the expenses and management burdens associated with the manual procedures and additional resources required to prepare its Consolidated Financial Statements. About Interpublic Group Interpublic Group of Companies Inc. (NYSE:IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draft FCB Group, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. The company has operations worldwide, including in Argentina, Australia, Chile, China, India, Indonesia, Ireland, Japan, Malaysia, Panama, Spain, Thailand, the United States and Venezuela, among others. INTERPUBLIC GROUP: S&P Rates Proposed Floating Rate Notes at B -------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' rating to floating-rate notes due 2010 proposed by Interpublic Group of Cos. Inc., to be issued in exchange for the same principal amount of its old floating-rate notes due 2008. At the same time, Standard & Poor's placed the rating on these notes on CreditWatch with negative implications. The new notes differ from the old notes principally in the lower interest rate and an extension of the maturity date. The ratings on the outstanding debt of Interpublic remain on CreditWatch with negative implications, where they were placed on March 22, 2006, as a result of declines in Interpublic's core business and the rating agency's reduced confidence in the company's prospects for cash flow generation. "We expect to evaluate Interpublic's operating outlook and business strategies within the next several weeks in order to complete our CreditWatch review," said Standard & Poor's credit analyst Deborah Kinzer. "Rating downside is currently limited to one notch," Kinzer added. Ratings List: * Ratings Remaining On CreditWatch * Interpublic Group of Cos. Inc. -- Corporate Credit Rating at B/Watch Neg/B-3 -- Short-Term Credit Rating at B-3/Watch Neg -- Senior Unsecured Debt at B/Watch Neg New Rating: * CreditWatch/Outlook Action * Interpublic Group of Cos. Inc. -- US$250 Million Floating-Rate Notes at B/Watch Neg Interpublic Group of Companies Inc. (NYSE:IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draft FCB Group, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. The company has operations worldwide, including in Argentina, Australia, Chile, China, India, Indonesia, Ireland, Japan, Malaysia, Panama, Spain, Thailand, the United States and Venezuela, among others. ========= I T A L Y ========= HILTON HOTELS: Declares US$0.04 Per Share Dividend -------------------------------------------------- Hilton Hotels Corp. declared a dividend of US$.04 per share, payable in cash on Dec. 15, 2006, to stockholders of record at the close of business on Dec. 1, 2006. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. Trinidad and Tobago * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service's confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp., in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors. Additionally, Moody's held its Ba2 probability-of-default ratings and assigned its LGD4 loss-given-default ratings on these loans and bond debt obligations: Senior Notes with an average rate of 8.1% due 2007 - 2031; Chilean inflation indexed note effective rate 7.65% due 2009; 3.375% Contingently convertible senior notes due 2023; Minimum Leases Commitments; Term Loan A at adjustable rates due 2011; Term Loan B at adjustable rates due 2013; and Revolving loans at adjustable rates, due 2011. Moody's said these obligations have a 53% Projected Loss-Given Default. Moody's also held its (P)Ba2 probability-of-default ratings and assigned a LGD4 loss-given-default rating with a Projected Loss- Given Default to the Company's Senior unsecured debt shelf. HILTON HOTELS: Seeks Modification to Greater Portland Judgment -------------------------------------------------------------- Hilton Hotels Corp. filed a request with the Anti-Trust Division of the United States Department of Justice to modify a Partial Final Judgment in United States vs. Greater Portland Convention Association Inc., et al. The Partial Final Judgment prohibits the defendants -- Greater Portland, Hilton Hotels, ITT Sheraton Corporation of America and Cosmopolitan Investment Inc. -- and their subsidiaries and successors from: -- agreeing with any other hotel to give or promise to give preferential treatment for the purchase of hotel supplies to hotel suppliers; or -- giving or promising to give preferential treatment for the purchase of hotel supplies to any hotel suppliers on the basis of payments, contributions or dues paid by suppliers to any convention bureau. Hiton proposes to add this modification to the original prohibition: "Provided, however, that nothing in this Section shall be construed to prohibit any hotel defendant from: -- developing hotel supply purchasing programs for its owned, managed and franchised hotels; or -- participating in bona fide group purchasing organizations or programs notwithstanding the fact that such organizations or programs may include one or more hotels." Hilton is seeking the modifications to ensure that the Partial Final Judgment would not be interpreted so as to prohibit the defendants from engaging in the specified activities. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. Trinidad and Tobago * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service's confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp., in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors. Additionally, Moody's held its Ba2 probability-of-default ratings and assigned its LGD4 loss-given-default ratings on these loans and bond debt obligations: Senior Notes with an average rate of 8.1% due 2007 - 2031; Chilean inflation indexed note effective rate 7.65% due 2009; 3.375% Contingently convertible senior notes due 2023; Minimum Leases Commitments; Term Loan A at adjustable rates due 2011; Term Loan B at adjustable rates due 2013; and Revolving loans at adjustable rates, due 2011. Moody's said these obligations have a 53% Projected Loss-Given Default. Moody's also held its (P)Ba2 probability-of-default ratings and assigned a LGD4 loss-given-default rating with a Projected Loss- Given Default to the Company's Senior unsecured debt shelf. INTERNATIONAL PAPER: Earns US$201 Million in 2006 Third Quarter --------------------------------------------------------------- International Paper Company earned US$201 million of net income on US$5.8 billion of net revenues for the three months ended Sept. 30, 2006, compared to US$1 billion of net income on $5.9 billion of net revenues for the same period in 2005. At Sept. 30, 2006, the company's balance sheet showed US$24.6 billion in total assets and US$18.8 billion in total liabilities. A full-text copy of the company's quarterly report is available for free at http://researcharchives.com/t/s?1597 On Oct. 25, 2006, the company amended its existing receivables securitization program that provided up to US$1.2 billion of commercial paper-based financings with a facility fee of 0.20% and an expiration date in November 2007, to provide up to US$1 billion of available commercial paper-based financings with a facility fee of 0.10% and an expiration date in October 2009. Acquisition On Oct. 30, 2006, the company completed its previously announced sale of around 900,000 acres of forestlands in Louisiana, Texas and Arkansas to an investor group led by TimberStar, a subsidiary of iStar Financial Inc. The purchase price for this transaction was around US$1.13 billion with around US$330 million paid in cash and US$800 million in promissory notes. In addition, the company, on Nov. 3, 2006, completed its previously announced sale of around 4.2 million acres of forestlands located across the southern U.S. and Michigan to an investor group led by Resource Management Service, LLC. The purchase price is around US$4.96 billion consisting of around $1.04 billion paid in cash and US$3.92 billion in promissory notes. About International Paper Based in Stamford, Connecticut, International Paper Company (NYSE: IP) -- http://www.internationalpaper.com/-- is in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia, specifically Japan and China. These businesses are complemented by an extensive North American merchant distribution system. International Paper is committed to environmental, economic and social sustainability, and has a long-standing policy of using no wood from endangered forests. * * * Moody's Investors Service assigned a Ba1 senior subordinate rating and Ba2 Preferred Stock rating on International Paper Company on Dec. 5, 2005. PARMALAT SPA: Credit Suisse, BNL Settle Suit for US$50 Million -------------------------------------------------------------- Credit Suisse Group and Banca Nazionale del Lavoro S.p.A. filed a memorandum of understanding in a Federal District Court in Manhattan to settle for US$25 million each a class action filed by investors of Parmalat S.p.A., the Wall Street Journal reports. The information was revealed by Stuart Grant, managing director of Grant & Eisenhofer, PA, which is representing Hermes Group, a U.K. pension-fund manager that had invested in Parmalat stock. Aside from the monetary settlement, the financial institutions agreed to institute changes in their corporate governance that will hopefully prevent future problems, Mr. Grant said. Details of those governance changes have yet to be fully worked out, according to him. Case Background U.S. holders of Parmalat bonds filed a securities fraud complaint in the U.S. District Court for the Southern District of New York against a number of Parmalat banks and auditors claiming that during the class period -- Jan. 5, 1999 through Dec. 18, 2003-- those individuals, along with Old Parmalat's banks and accounting firms, structured and participated in a series of fraudulent schemes designed to hide Old Parmalat's growing debts to third parties and artificially inflate its assets, revenues and ultimately, the market prices of its securities. The scheme culminated in Old Parmalat's financial collapse when it was revealed that the company's total consolidated debt had been understated by nearly US$10 billion and its total net assets, or shareholder equity, had been overstated by US$16.4 billion. Parmalat, an international food and dairy company, filed for bankruptcy in Italy in December 2003. In October 2005, the court in Parma, Italy issued a decree approving a "composition" or agreement with Old Parmalat's creditors causing Parmalat S.p.A. to formally succeed Old Parmalat and triggering the transfer of Old Parmalat's assets and liabilities to New Parmalat. Thus, unlike U.S. bankruptcy, Parmalat S.p.A., or "New Parmalat" did not get a "fresh start" with its pre-petition debts being discharged. Rather, it emerged with the assets and liabilities of its predecessor companies that were not discharged in the Extraordinary Administration. In its first official prospectus, New Parmalat recognized that plaintiffs in the U.S. securities class action could assert claims against it in the U.S. For these reasons, lead plaintiffs moved for leave to assert federal securities fraud claims against New Parmalat based on the actions of Old Parmalat and its officers, directors, statutory auditors and others prior to Extraordinary Administration. In June, Grant & Eisenhofer and Cohen Milstein, law firms leading a securities class action against Parmalat S.p.a., filed a fresh motion seeking permission to amend their complaint to assert claims against Parmalat S.p.A. The amended complaint was filed in U.S. District Court for the Southern District of New York. Grant & Eisenhofer represents Parmalat shareholders, including U.K.-based Hermes Focused Asset Management Europe Ltd. Law firm Cohen Milstein Hausfeld & Toll, P.L.L.C. represents Parmalat's former bondholders. The amended complaint also contains new allegations against accounting Grant Thornton LLP, which had previously been dismissed from the case, showing that it controlled its U.S. affiliate, defendant Grant Thornton International, which had participated in the fraud. Plaintiffs also amended their claims against Credit Suisse First Boston, now known as Credit Suisse. They added new claims against related entities: -- Credit Suisse First Boston International, now known as Credit Suisse International, -- Credit Suisse First Boston (Europe) Limited, now known as Credit Suisse Securities (Europe) Limited, and -- Credit Suisse Group, for their direct participation in, or control of entities that participated in, the fraud. The Class Action Reporter relates that a third amended complaint has already been filed. In summary, defendants in this class action includes: -- new Parmalat S.p.A. -- Deloitte & Touche; -- Mr. James Copeland, as an individual; -- Grant Thornton; -- Citigroup, including Buconero, Vialattea, Eureka Securitization; -- Bank of America; -- Credit Suisse; -- Banca Nazionale del Lavoro; -- Banca Intesa; Morgan Stanley; -- the law office of Pavia Ansaldo; -- the law office of Zini Associates; and -- other individuals. Hermes Focus Asset Management Europe Limited; Cattolica Partecipazioni S.p.A.; Solotrat; Societe Moderne des Terrassements Parisiens; and Capital & Finance Asset Management, S.A., had asked the Honorable Lewis A. Kaplan of the U.S. District Court for the Southern District of New York to deny separate motions filed by Grant Thornton LLP and Credit Suisse to dismiss their third amended consolidated class action complaint (Class Action Reporter, Sept. 25, 2006). The suit is "In Re: Parmalat Securities Litigation, Case No. 1:04-cv-00030-LAK-HBP," filed in the U.S. District Court for the Southern District of New York under Judge Lewis A. Kaplan with referral to Judge Henry B. Pitman. Representing the plaintiffs are: (1) Patrick J. Coughlin of Milberg, Weiss, Bershad, Hynes & Lerach, L.L.P., 100 Pine Street, San Francisco, CA 94111, Phone: (415) 288-4545; (2) Joshua Seth Devore of Cohen, Milstein, Hausfeld & Toll, PLLC (DC), 1100 New York Avenue, N.W. West Towen #500, Washington, D.C., DC 20005, Phone: (202)408-4600, Fax: (202)-408-4699, E-mail: jdevore@cmht.com; (3) Stuart M. Grant of Grant & Eisenhofer, PA (DE), Chase Manhattan Centre, 1201 North Market Street, Wilmington, DE 19801, Phone: (302) 622-7000, Fax: (302) 622-7100, E-mail: sgrant@gelaw.com; and (4) Mario Alba, Jr. of Lerach, Coughlin, Stoia, Geller, Rudman & Robbins, LLP(LIs), 58 South Service Road, Suite 200, Melville, NY 11747, Phone: 631-367-7100, Fax: 631-367-1173, E-mail: malba@lerachlaw.com Representing the defendants are: (1) Christopher Moore Brubaker of Kittredge Donley Elson Fullem & Emb (PA), 400 Market Street, Suite 200, Philadelphia, PA 19106, Phone: (215)-829-9900, Fax: (215)-829-9888, E-mail: cbrubaker@kdefe.com; (2) Donald C. Moss of Moss & Moss, L.L.P., 170 East 61st Street, New York, NY 10021, Phone: (212) 644-1000; (3) Norina I. Edelman of Sidley Austin LLP(Washington), 1501 K Street, N.W., Washington, DC 20005, Phone: (202- 736-8739, Fax: (202)-736-8711, E-mail: nedelman@sidley.com; (4) Dana Leigh Post of Kramer Levin Naftalis & Frankel, LLP, 1177 Avenue of the Americas, New York, NY 10036, Phone: (212) 839-5667, Fax: (212) 839-5599, E-mail: dpost@sidley.com; (5) Howard A. Ellins of Davis Polk & Wardwell, 450 Lexington Avenue, New York, NY 10017, Phone: (212)-450- 4248, Fax: (212)-450-5548, E-mail: ellins@dpw.com; (6) Dennis Eugene. Glazer of Davis Polk & Wardwell, 450 Lexington Avenue, New York, NY 10017, Phone: (212)-450- 4900 Fax: (212)-450-3900, E-mail: dennis.glazer@dpw.com; (7) Loren Kieve of Quinn, Emanuel, Urquhart, Oliver & Hedges, 50 California Street, 22nd Flr., San Francisco, CA 94104-2543, Phone: (415) 875-6320, Fax: (415) 875- 6700, E-mail: lorenkieve@quinnemanuel.com; and (8) Mark Adam Kirsch of Clifford Chance US, LLP(NYC!), 31 West 52nd Street, New York, NY 10019-6131, Phone: (212) 878-8192, Fax: (212) 878-8375, E-mail: mark.kirsch@cliffordchance.com. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. =================== K A Z A K H S T A N =================== ADANI-SK: Creditors Must File Proofs of Claims by January 5 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region entered on Sept. 25 an order placing LLP Adani-sk into compulsory liquidation. Creditors have until Jan. 5, 2007, to submit written proofs of claim to: LLP Adani-sk Sutushev Str. 58 Petropavlovsk North Kazkhstan Region Kazakhstan Tel: 8 (3152) 46-46-26 Fax: 8 (3152) 46-35-83 AK-BIDAI CJSC: Creditors' Proofs of Claims Due December 22 ---------------------------------------------------------- CJSC Ak-Bidai has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: CJSC Ak-Bidai Ujnaya Str. 9 Tayinsha Tayinshynsky District North Kazakhstan Region Kazakhstan ALEMBEK LLP: Proofs of Claim Deadline Slated for January 5 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region entered an order placing LLP Alembek (RNN 531400041346) into compulsory liquidation. Creditors have until Jan. 5, 2007, to submit written proofs of claim to: LLP Alembek Room 208 Jansugurov Str. 113a Taldykorgan Almaty Region Kazakhstan Tel: 8 (32822) 24-19-77 INTERSOFT-EKIBASTUZ: Claims Registration Ends December 22 --------------------------------------------------------- LLP Intersoft-Ekibastuz Ltd. has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Intersoft-Ekibastuz Ltd. Stroitelnaya Str. 29-33 Ekibastuz Pavlodar Region Kazakhstan KAZAKHSTANSKAYA FINANSOVAYA: Creditors' Claims Due January 5 ------------------------------------------------------------ JSC Kazakh Financial Company Kazakhstanskaya Finansovaya Kompaniya has declared insolvency. Creditors have until Jan. 5, 2007, to submit written proofs of claim to: JSC Kazakhstanskaya Finansovaya Kompaniya Tulebaev Str. 149-19 Almaty, Kazakhstan MUNAI REMONT: Claims Filing Period Ends December 22 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Munai Remont Komplekt insolvent on Sept. 22. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Munai Remont Komplekt Industrial Zone Janaozen Mangistau Region Kazakhstan Tel: 8 (32934) 33-851 NAFTO-CENTRE LLP: Astana Court Starts Bankruptcy Procedure ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana commenced bankruptcy proceedings against LLP Nafto-Centre (RNN 031400154786) on Oct. 31. LLP Nafto-Centre is located at: Abai Ave. 94-427 Almaty District Astana, Kazakhstan PAVLODAR TRANS: Claims Registration Ends December 22 ---------------------------------------------------- LLP Pavlodar Trans Energo Service has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Pavlodar Trans Energo Service Sheshemekov Str. 11g Ekibastuz Pavlodar Region Kazakhstan PULSAR INTERNATIONAL: Claims Filing Period Ends December 22 ----------------------------------------------------------- LLP Pulsar International has declared insolvency. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Pulsar International Micro District 2, 55b Almaty, Kazakhstan STROY ALLIANCE: Proof of Claim Deadline Slated for January 3 ------------------------------------------------------------ LLP Stroy Alliance Limited has declared insolvency. Creditors have until Jan. 3, 2007, to submit written proofs of claim to: LLP Stroy Alliance Limited Manas Str. 32a Almaty, Kazakhstan Tel: 8 (3272) 37-83-78 SUPER-BAI LLP: Creditors Must File Claims by December 22 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Super-Bai insolvent on Oct. 6. Creditors have until Dec. 22 to submit written proofs of claim to: LLP Super-Bai Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan TAMIRIS INTERNATIONAL: Creditors' Claims Due January 5 ------------------------------------------------------ LLP Tamiris International LLC has declared insolvency. Creditors have until Jan. 5, 2007 to submit written proofs of claim to: LLP Tamiris International LLC Micro District "Samal-2", 16b-26 Almaty, Kazakhstan TRANSSFERA LLP: Claims Filing Period Ends January 5 --------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region entered on Sept. 18 an order placing LLP Scientific-Engineering Rail Road Company Transsfera into compulsory liquidation. Creditors have until Jan. 5, 2007, to submit written proofs of claim to: LLP Transsfera Sutushev Str. 58 Petropavlovsk North Kazkhstan Region Tel: 8 (3152) 46-46-26 Fax: 8 (3152) 46-35-83 TVK LLP: East Kazakhstan Court Opens Bankruptcy Proceedings ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region commenced bankruptcy proceedings against LLP TVK on Oct. 26. VIVAT LLP: Creditors Must File Proofs of Claims by January 5 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region declared LLP Vivat insolvent on Oct. 17 without the introduction of the bankruptcy proceedings. Creditors have until Jan. 5, 2007, to submit written proofs of claim to: LLP Vivat Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 24-06-50 =================== K Y R G Y Z S T A N =================== EURO VISION: Creditors' Proofs of Claims Due January 12 ------------------------------------------------------- LLC Euro Vision Trading Ltd. has declared insolvency. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLC Euro Vision Trading Ltd. Shamsinskaya Str. 3-35 Tokmok Chui Region Kyrgyzstan Tel: (+996 3138) 5-12-15 TRANS-ALTYN-SERVICE: Claims Registration Ends January 12 -------------------------------------------------------- LLC Trans-Altyn-Service has declared insolvency. Creditors have until Jan. 12, 2007, to submit written proofs of claim to: LLC Trans-Altyn-Service Vasiliev Str. 83 Bishkek, Kyrgyzstan =================== L U X E M B O U R G =================== MDM DPR: Parent Issues Five-Year Dual-Tranche Series 2006 Notes --------------------------------------------------------------- OJSC Moscow Business World, also known as MDM Bank, successfully launched and priced a dual-tranche debt issuance from a newly established future flow diversified payment rights securitization program. The issuance consisted of a EUR225 million Series 2006-A tranche and a US$200 million Series 2006-B tranche. Both tranches have final maturities of five years and an average life of 2.5 years. "We are pleased with the breadth of investor interest in our first DPR issue, which is the largest borrowing transaction for MDM Bank to date," Andrey Ilyin, MDM Bank's CFO, commented." "The DPR program is a substantial enhancement of our funding toolkit that we will continue to successfully employ for profitable above-market growth in corporate, SME and retail segments." This new issue is the largest DPR issuance to date from Russia and the CIS Region, and is the second securitization this year from MDM Bank. It is also the first time that a Euro- denominated DPR securitization has been issued by a Russian bank. "By offering investors a Euro-denominated series MDM was able to attract investors that had not participated in the recent US$-denominated securitization to come out of Russia", said James Walters, Head of EEMEA ABS at Dresdner Kleinwort. "MDM has had a great year in utilizing securitization to provide funding and has been Russia's largest ABS issuer in 2006". "The transaction is another great success for MDM Bank, coming hot-on-the-heels of their recent car loan securitization", said Alex von Sponeck, Head of CEEMEA Debt Capital Markets at Merrill Lynch. "The Bank is at the forefront of Russian banks in developing a diversified and sophisticated funding platform which accesses a range of different investor bases". The Notes were priced at par, and are priced at Euribor +200bps and US$Libor +200bps respectively. The Notes are rated two notches higher than the Ba2 Senior Unsecured rating of MDM. This is only the second time that a future flow issuance from Russia has achieved a two notch ratings upgrade. The debut DPR securitization represents a great achievement for MDM Bank with strong investor interest in the Notes. The transaction also serves to significantly diversify MDM Bank's investor base, with the overwhelming majority of investors in the transaction being new investors for the Bank. Dresdner Bank AG London Branch and Merrill Lynch International as Joint Arrangers structured the program for the issuance. The issuance is executed through the MDM DPR Finance Company S.A., which is a special-purpose company incorporated under the laws of Luxembourg. Headquartered in Moscow, Russia, OJSC MDM Bank -- http://www.mdmbank.com/provides financial services organized across four divisions: corporate banking, retail banking, and investment banking. The bank owns and operates 100 offices throughout Russia. * * * As reported in the Troubled Company Reporter on March 14, Moody's Investors Service has assigned Ba2 and Not Prime long- and short-term foreign currency bank deposit ratings and a D Financial Strength Rating (FSR) to MDM Bank (Russia), which is the lead operating entity in MDM Financial Group (MDM FG), comprising over 90% of the group's total IFRS-consolidated assets and shareholders' equity. At the same time Moody's has affirmed the Ba2/Not Prime ratings assigned to MDM Bank's US$2 billion Program for the Issuance of Loan Participation Notes. The Notes will be issued by, but with limited recourse to, MDM International Funding Plc (Ireland) for the sole purpose of financing advances to MDM Bank. The outlook for all ratings is stable. According to Moody's, the Ba2/Not Prime/D ratings are based on the fundamental credit strength of MDM Bank, and do not incorporate any potential support from the authorities in case of need. MILLICOM INT'L: Moody's Lifts Ratings on Robust Performance ----------------------------------------------------------- Moody's Investors Service upgraded the ratings of Millicom International Cellular S.A. Ratings upgraded: Millicom International Cellular S.A. -- Corporate Family Rating to Ba3 from B1; -- US$550-million senior notes to B2 from B3; and The outlook on the ratings is stable. The upgrade reflects: (i) the company's continued robust operational and financial performance; (ii) resolution of uncertainty associated with a potential change in ownership following completion of their strategic review; (iii) the company's modest level of debt; e.g. on a nine month annualized basis Millicom was leveraged at 1.7x Total Debt to reported EBITDA and 0.7x on a Net Debt basis (both excluding license obligations);and (iv) Millicom's ability to compensate revenue and EBITDA growth despite a loss of its Business Cooperation Agreement in Vietnam. Moody's notes that the company operates in markets which exhibit heightened political and economic risks endemic to emerging markets; e.g. the majority of the company's revenue and EBITDA is generated in Central America (El Salvador, Guatemala and Paraguay). The second largest and the fastest growing region in terms of revenue and EBITDA is Africa. Moody's does not have published ratings on many of Millicom's countries of operations in Africa. At the same time, these markets show high growth momentum in mobile penetration due to limited fixed line coverage, currently relatively modest mobile penetration levels and improving macroeconomic conditions. Moody's believes that Millicom is well positioned to benefit from anticipated growth in these markets over the medium term. As of Sept. 31, 2006, the company had US$567.4 million in cash and cash equivalents. Moody's believes that the company is likely to use this cash for organic growth, particularly in light of the recently increased capital expenditure requirements, and possible buy-out of minority interests. The rating does not factor in any material debt financed acquisitions. Moody's however recognizes that Millicom intends to spend around US$200 million over the next three years to finance its investment in Colombia Movil S.A. through debt incurrence. Furthermore, consolidation of Colombia Movil in Q4 2006 will increase Millicom's debt metrics. At the same time, Millicom's recently announced sale of Paktel Limited will decrease its licence obligations going forward. Millicom is modestly leveraged at around 1.7x Total Debt to EBITDA on an annualized nine months EBITDA basis (excluding around US$200 million in unpaid license fees with the majority of those for Paktel Ltd.). Moody's believes that the company has to retain a relatively modest leverage to mitigate risks associated with its operations in emerging markets. The outlook on the rating is stable reflecting Moody's expectations that the company will continue to grow its revenue and EBITDA fuelled by subscriber growth. Furthermore, the outlook relies on the expectation that the company will finance its growth mostly with internally generated cash flow. At the same time the outlook reflects an increased level of capital expenditure. Moody's notes that Millicom has recently raised its capital expenditure guidance for 2006 and 2007; e.g. the company expects to spend over US$700 million in 2006 and higher amount in 2007. What could change the rating - Up * continued robust operational and financial performance; * adherence to conservative financial policy. What could change the rating - Down * material debt financed acquisitions and / or shareholder distributions resulting in leverage metrics higher than 2.0x Net Debt to EBITDA on an extended basis; * incurrence of material licence obligations; * deterioration in the company's operational performance due to risks associated with its countries of operations. Millicom International Cellular S.A., headquartered in Luxembourg, is a global telecommunications investor with cellular operations in Latin America, Africa and Asia. In Q3 2006, the company generated US$402.5 million in revenue and US$178.7 million in reported EBITDA. ===================== N E T H E R L A N D S ===================== PHELPS DODGE: Freeport Takeover Depends on Commodity Prices ----------------------------------------------------------- Analysts told Business News Americas that the wisdom of Freeport-McMoRan Copper & Gold's proposed takeover of Phelps Dodge will depend on future commodity prices. Victor Flores, an HSBC analyst, explained to BNamericas, "It all revolves around what the commodity prices do. Our view is that commodity prices will stay fairly robust but they WILL decline. Maybe they [Freeport] have insights that we don't." According to BNamericas, Mr. Flores was referring to Freeport's ability to manage its new debt structure. BNamericas relates that under the cash and stock transaction, Freeport will pay US$126.46 per Phelps Dodge share, representing a 33% premium over the latter's closing share price on Nov. 17. Freeport told BNamericas that it will take on debt to pay the US$18 billion cash portion, representing 70% of the total consideration of US$25.9 billion. Including the transaction, pro forma net debt is estimated at US$15 billion in 2006 versus estimated Ebitda of US$7.9 billion. "Freeport is betting on the cycle lasting a lot longer. I don't mean necessarily higher copper prices than the current but ones that are still well above the long-term levels that companies and analysts use on a planning basis," Nick Hatch, an analyst at Investec, commented to BNamericas. Richard Adkerson, chief executive officer of Freeport, told BNamericas that copper prices do not have to be as good as 2006 for the deal to make sense. BNamericas underscores that a Freeport said in a presentation that it saw pro forma annual average Ebitda for 2007-09 of just under US$4 billion at copper prices of US$1.50 per pound, almost US$6 billion at US$2 per pound and US$8 billion at US$2.5 per pound. According to the report, analysts agreed that the deal would provide Freeport with important diversification. Mr. Flores told BNamericas, "They potentially gain a lower risk rating for the company by putting the Indonesian asset within a larger portfolio." BNamericas emphasizes that Freeport's only mining operation is the world class, low-cost Grasberg copper mine in Indonesia. Meanwhile, Mr. Hatch is doubtful that another firm will compete with Freeport on Phelps Dodge, BNamericas relates. Mr. Hatch told BNamericas, "This one is substantially above Phelps' closing share price and there are relatively few companies that would want to pay that kind of money." However, Mr. Flores admitted to BNamericas that it is possible that firms would bid against Freeport, given this year's trend. "As we have seen already in several cases this year, a deal that starts off on one path ends up going down a very different path," Mr. Flores told BNamericas. The analysts agreed that the 2006 historical level of consolidation in the mining sector will likely drop off next year in response to probable lower metal prices and fewer opportunities, according to BNamericas. The Freeport-Phelps Dodge deal is yet to be approved by the two firm's shareholders. The deal will be closed at the end of the first quarter of next year, BNamericas states. About Freeport McMoRan Freeport-McMoran Copper & Gold Inc. -- through its majority- owned subsidiary, PT Freeport Indonesia -- is engaged in copper, gold and silver mining and production operations. The company owns around 90.64% of PT Freeport Indonesia, and the Government of Indonesia owns the remaining approximate 9.36%. The company's principal asset is the Grasberg minerals district. During the year ended Dec. 31, 2005, net additions and revisions to the aggregate proven and probable reserves of the Grasberg and other Block A ore bodies in the Grasberg minerals district totaled around 132 million metric tons of ore representing increases of 2.1 billion recoverable pounds of copper, 0.4 million recoverable ounces of gold and 12.1 million recoverable ounces of silver. About Phelps Dodge Phelps Dodge -- http://www.phelpsdodge.com/-- is among the world's largest producers of molybdenum, molybdenum-based chemicals, and manufacturer of wire and cable products. It maintains operations in Mexico, Puerto Rico, Thailand, China, Japan, the Netherlands, and the United Kingdom, among others. * * * On June 26, 2006, Moody's Investors Services has placed Phelps Dodge's Ba1 junior preferred shelf rating in CreditWatch for a possible downgrade. X5 RETAIL: Completes Acquisition of OOO Metronom AG --------------------------------------------------- X5 Retail Group N.V. discloses of the closing of the transaction for the acquisition of 100% of OOO "Metronom AG", following the approval of the Supervisory Board of X5 Retail Group N.V. and statuary government approvals, including antimonopoly authorities. As a result, X5 Retail Group N.V. acquired a business having retail premises of around 33,000 square metres in commercially attractive districts of the city of Moscow, as well as a wholly owned distribution and office center in the central part of Moscow with total capacity of more than 17,000 square meters, with a land plot of 4.3 hectares. Through this acquisition, Pyaterochka Holding N.V. also acquired an established and growing operational business of 16 supermarkets in the city of Moscow, with the rights for the retail operations in the Russian Federation under "Merkado" and "Merkadona" trademarks. The total enterprise value of the transaction is US$200 million, of which the enterprise value of the operational business -- excluding the value of real estate -- is around US$50 million. "We are happy to announce closing of a transaction which gives us a valuable addition to our real estate portfolio but also significantly enhances our already leading position in the most important retail market of Russia -- the city of Moscow," Lev Khasis, Group CEO, commented. "The Merkado supermarkets will be integrated into either "Perekrestok" or "Pyaterochka" formats and we will ensure that the services of the acquired chain will be quickly brought to the level of the Group's existing quality standards." "The Merkado chain is a highly profitable business which will further enhance the financial performance of the Group," Vitaliy Podolskiy, Group CFO added. "During the integration process, we will make sure that the operations of the acquired chain are uninterrupted, particularly in terms of continued supplies to the stores and guaranteed payments for already executed supplies." About Pyaterochka Holding Headquartered in the Netherlands, X5 Retail Group N.V. -- http://www.5chka.com/-- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company has reported unaudited net revenues of US$1.4 billion for 2005. * * * As reported in the TCR-Europe on Aug. 29, Moody's Investors Service downgraded the corporate family rating of Pyaterochka Holding N.V. to B1 from Ba3. Moody's said the outlook for the rating is stable. Standard & Poor's Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. S&P said the outlook is negative. =========== P O L A N D =========== AUTOCAM CORP: May Not Comply with Covenants on December 2006 ------------------------------------------------------------ Autocam Corp. disclosed of in a regulatory filing with the U.S. Securities and Exchange Commission that based on its current projections, it might be unable to comply with the financial covenants set in its senior credit facilities and second lien credit facility as of Dec. 31, 2006. The company however said that it was in compliance with the covenants as of Sept. 30, 2006. The company's senior credit facilities and second lien credit facility's financial covenants are tested at each calendar quarter-end. Credit Facilities As of Sept. 30, 2006, the company says that it borrowed US$23.1 million under its revolving credit facilities to fund liquidity needs as cash generated from operations was insufficient to meet the company's requirements. As of Sept. 30, 2006, the company had US$17.3 million remaining under its revolving credit facilities and its senior credit facilities permits the company to factor without recourse an additional US$9.5 million of trade receivables. Subsequent to Sept. 30, 2006, the company discloses that it borrowed US$15.8 million of funds available under the revolving credit facilities, and as of Nov. 13, 2006, had cash holdings of US$13.1 million. The company says that since it only had US$1.2 million remaining in its revolving credit facilities as of Nov. 13, 2006, the company's short-term liquidity needs must be met primarily from cash on hand and cash generated from operations. The company relates that these sources could be insufficient to meet its debt service and day-to-day operating expenses during the fourth quarter. The company discloses that the interest payments on its senior subordinated notes are due Dec. 15, 2006, while interest payments on its senior credit facility and second lien credit facility are due Dec. 29, 2006. Failure to make these payments within the applicable 30-day grace period in the case of the senior subordinated notes and the applicable five-day grace period under the senior credit facilities and second lien credit facility, the company says, would constitute events of default under these notes and credit facilities. Options The company discloses that in order to improve its near-term liquidity, it is exploring a variety of options, which include: * reducing investment in working capital; * selling idle equipment; and * securing other sources of capital for its operations. The company further discloses that it intends to engage in discussion with its senior and second lien lenders to seek further amendments to its senior credit facilities and second lien credit facility to provide for covenant relief. It also intends to engage in restructuring discussion with holders of the company's senior subordinated notes. The company says it cannot assure that the discussions with its lenders will be successful. If the company is not successful, then upon an event of default, the senior and second lien lenders will have the ability to exercise all of their rights, including requiring the amounts outstanding under the senior credit facilities and the second lien credit facility to become due and payable. Headquartered in Kentwood, Michigan, Autocam Corporation -- http://www.autocam.com/-- is a wholly-owned subsidiary of Titan Holdings, Inc. Autocam manufactures extremely close tolerance precision-machined, metal alloy components, sub-assemblies and assemblies, primarily for performance and safety critical automotive applications. The company provides these products from its facilities in North America, Europe, South America and Asia to some of the world's largest suppliers to the automotive industry. These suppliers include Autoliv, Delphi Corporation, Robert Bosch GmbH, Siemens VDO, TRW Automotive, Inc. and ZF Friedrichshafen AG. The company has operations in Brazil, France and China. * * * As reported in the TCR-Europe on Nov. 24, 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-'. =========== R U S S I A =========== AIF CJSC: Court Names M. Mulyukov as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. M. Mulyukov as Insolvency Manager for CJSC AIF. He can be reached at: M. Mulyukov Post User Box 20 Main Post Office Ufa 450000 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-13666/06-G-MOG. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: CJSC AIF Lenina Str. 238 Iglino Iglinskiy Region 452410 Bashkortostan Republic Russia APASTOVO-AGRO-KHIM-SERVICE: Names I. Gilyazov to Manage Assets -------------------------------------------------------------- The Arbitration Court of Tatarstan Republic appointed Mr. I. Gilyazov as Insolvency Manager for OJSC Apastovo-Agro-Khim- Service. He can be reached at: I. Gilyazov Post User Box 5 GOS 3 Chistopol 422983 Tatarstan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-5527/2006-SG4-26. The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: OJSC Apastovo-Agro-Khim-Service Karatunskiy KhPP Apastovskiy Region Tatarstan Republic Russia BARNAULSKIY MEAT: Names L. Prikhod'ko as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Altay Region appointed Ms. L. Prikhod'ko as Insolvency Manager for LLC Barnaulskiy Meat Combine. She can be reached at: L. Prikhod'ko Post User Box 3077 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-11530/06-B. The Debtor can be reached at: LLC Barnaulskiy Meat Combine Barnaul Altay Region Russia BAYMAK-MIXED FODDER: Bankruptcy Hearing Slated for December 4 ------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic will convene at 11:00 a.m. on Dec. 4 to hear the commenced bankruptcy supervision procedure on OJSC Baymak-Mixed Fodder (TIN 0254008941). The case is docketed under Case No. A07-12475/06- G-GRA. The Temporary Insolvency Manager is: F. Yunusov Br. Kadomtsevykh Str. 6 Ufa 450059 Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: OJSC Baymak-Mixed Fodder Obyezdnoye Shosse 1 Baymak Baymakskiy Region 453630 Bashkortostan Republic Russia GOLDEN TELECOM: Acquires Corus ISP for US$1.2 Million ----------------------------------------------------- Golden Telecom Inc. discloses that it acquired 100% interest in ZAO Corus ISP for US$1.2 million. Corus ISP is an alternative telecommunications services provider in Ekaterinburg, the fifth largest and dynamically growing city in Russia. Corus ISP is one of the pioneers of Internet services in Ekaterinburg, presently focusing on broadband access for corporate clients, with its market share estimated at around 7%. Corus ISP has an extensive network in central Ekaterinburg, with around 29 km of owned and leased channels, and more than 120 point of presence. Golden Telecom has provided services to its clients in Ekaterinburg for more than 10 years. Scope and quality of operations were enhanced dramatically when in August 2004 ZAO TeleRoss-Ekaterinburg, OOO UralRelcom and the Ekaterinburg branch of Combellga were merged into the Ekaterinburg branch of Golden Telecom. Successful integration of these companies enabled Golden Telecom to offer a wide range of telecommunication products and services. Currently, the Company is the leading provider of broadband access services, local and zonal telephone services, data communication, and corporate networks development. The Company estimates that it has around 26% of the corporate market and over 10% of the total fixed-line market in Ekaterinburg. This acquisition will place Golden Telecom in the center of Ekaterinburg's communications market due to Corus ISP's network infrastructure and existing business clients, thus increasing the Company's Ekaterinburg market share in the corporate segment to around 33%. "We acquired Corus ISP to further our regional expansion and speed the development of broadband services for corporate and residential clients in Ekaterinburg," Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom noted. "We look forward to providing complementary Internet, data, and voice services which will strengthen our presence in this growing regional market." About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. KARAKULSKOYE CJSC: Bankruptcy Hearing Slated for January 18 ----------------------------------------------------------- The Arbitration Court of Chelyabinsk Region will convene on Jan. 18, 2007, to hear the bankruptcy supervision procedure on CJSC Karakulskoye. The case is docketed under Case No. A76- 20218/2006-52-186. The Temporary Insolvency Manager is: V. Gilmanov Kirova Str. 118 456091 Chelyabinsk Region Russia The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: CJSC Karakulskoye Karakulskoye Oktyabrskiy Region 457144 Chelyabinsk Region Russia KRASNOYARUZHSKIY BACON: Names A. Myakotin to Manage Assets ---------------------------------------------------------- The Arbitration Court of Belgorod Region appointed Mr. A. Myakotin as Insolvency Manager for CJSC Krasnoyaruzhskiy Bacon. He can be reached at: A. Myakotin Office 304 Chumichova Str. 126 308014 Belgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-7971/06-24 B. The Arbitration Court of Belgorod Region is located at: Narodnyj Avenue 135 308600 Belgorod Region Russia The Debtor can be reached at: CJSC Krasnoyaruzhskiy Bacon Tsentralnaya Str. 72 Krasnaya Yaruga Belgorod Region Russia MDM BANK: Issues Five-Year Dual-Tranche Series 2006 Notes --------------------------------------------------------- OJSC Moscow Business World, also known as MDM Bank, successfully launched and priced a dual-tranche debt issuance from a newly established future flow diversified payment rights securitization program. The issuance consisted of a EUR225 million Series 2006-A tranche and a US$200 million Series 2006-B tranche. Both tranches have final maturities of five years and an average life of 2.5 years. "We are pleased with the breadth of investor interest in our first DPR issue, which is the largest borrowing transaction for MDM Bank to date," Andrey Ilyin, MDM Bank's CFO, commented." "The DPR program is a substantial enhancement of our funding toolkit that we will continue to successfully employ for profitable above-market growth in corporate, SME and retail segments." This new issue is the largest DPR issuance to date from Russia and the CIS Region, and is the second securitization this year from MDM Bank. It is also the first time that a Euro- denominated DPR securitization has been issued by a Russian bank. "By offering investors a Euro-denominated series MDM was able to attract investors that had not participated in the recent US$-denominated securitization to come out of Russia", said James Walters, Head of EEMEA ABS at Dresdner Kleinwort. "MDM has had a great year in utilizing securitization to provide funding and has been Russia's largest ABS issuer in 2006". "The transaction is another great success for MDM Bank, coming hot-on-the-heels of their recent car loan securitization", said Alex von Sponeck, Head of CEEMEA Debt Capital Markets at Merrill Lynch. "The Bank is at the forefront of Russian banks in developing a diversified and sophisticated funding platform which accesses a range of different investor bases". The Notes were priced at par, and are priced at Euribor +200bps and US$Libor +200bps respectively. The Notes are rated two notches higher than the Ba2 Senior Unsecured rating of MDM. This is only the second time that a future flow issuance from Russia has achieved a two notch ratings upgrade. The debut DPR securitization represents a great achievement for MDM Bank with strong investor interest in the Notes. The transaction also serves to significantly diversify MDM Bank's investor base, with the overwhelming majority of investors in the transaction being new investors for the Bank. Dresdner Bank AG London Branch and Merrill Lynch International as Joint Arrangers structured the program for the issuance. The issuance is executed through the MDM DPR Finance Company S.A., which is a special-purpose company incorporated under the laws of Luxembourg. Headquartered in Moscow, Russia, OJSC MDM Bank -- http://www.mdmbank.com/provides financial services organized across four divisions: corporate banking, retail banking, and investment banking. The bank owns and operates 100 offices throughout Russia. * * * As reported in the Troubled Company Reporter on March 14, Moody's Investors Service has assigned Ba2 and Not Prime long- and short-term foreign currency bank deposit ratings and a D Financial Strength Rating (FSR) to MDM Bank (Russia), which is the lead operating entity in MDM Financial Group (MDM FG), comprising over 90% of the group's total IFRS-consolidated assets and shareholders' equity. At the same time Moody's has affirmed the Ba2/Not Prime ratings assigned to MDM Bank's US$2 billion Program for the Issuance of Loan Participation Notes. The Notes will be issued by, but with limited recourse to, MDM International Funding Plc (Ireland) for the sole purpose of financing advances to MDM Bank. The outlook for all ratings is stable. According to Moody's, the Ba2/Not Prime/D ratings are based on the fundamental credit strength of MDM Bank, and do not incorporate any potential support from the authorities in case of need. MENDELEEVSKIY ELEVATOR: Names V. Shumilov to Manage Assets ---------------------------------------------------------- The Arbitration Court of Perm Region appointed Mr. V. Shumilov as Insolvency Manager for OJSC Mendeleevskiy Elevator. He can be reached at: V. Shumilov Zarayaskaya Str. 12-1 Perm Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A50-15691/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: OJSC Mendeleevskiy Elevator Lenina Str. 23 Mendeleevo Karagayskiy Region Perm Region Russia MOBILE TELESYSTEMS: Assails Bitel's Press Release ------------------------------------------------- Mobile TeleSystems OJSC disclosed that in light of numerous requests from the media regarding the press release issued on behalf of Bitel, MTS deems it necessary to make these statements: -- the information distributed on behalf of Bitel is part of an unprincipled propaganda campaign carried out with the aim of pressuring the courts to render a decision on the title of ownership of Bitel; -- the dissemination of this information by Bitel coincides with developments in court proceedings in the Isle of Man that MTS views as favorable to the Company. -- MTS in the past did not comment on the information issued by the current management of Bitel as it was unlawfully appointed and will refrain from doing so in the future; -- if the statements issued by the current management of Bitel are received and taken into consideration by any court, MTS will be more than happy to provide its fullest cooperation. -- as always MTS will inform the public of all the significant changes surrounding Bitel. Also, on Nov. 8, 2006, MTS sent official letters to the management of OJSC Vimpel-Communications and Telenor that stated its position on Bitel and warned of the possibility of criminal proceedings in the event that Vimpelcom acquired the Kyrgyz GSM operator Sky Mobile, which is owned by Altimo and received Bitel's assets after they were transferred by Bitel's unlawful management. The company appreciated the fact that Vimpelcom's Board of Directors did not make the decision to acquire Sky Mobile. About Mobile TeleSystems Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- company provides global system for mobile communications technology-based mobile telecommunications services in Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). As of Dec. 31, 2005, MTS had a working capital deficit of US$631.6 million, compared with a US$189 million working capital deficit at Dec. 31, 2004. MTS is rated to BB-/outlook stable by S&P in and Ba3/outlook stable by Moody's. ROMANOVSKIY MEAT: Names L. Prikhod'ko to Manage Assets ------------------------------------------------------ The Arbitration Court of Altay Region appointed Ms. L. Prikhod'ko as Insolvency Manager for Municipal Enterprise Romanovskiy Meat Processing Combine. She can be reached at: L. Prikhod'ko Post User Box 3077 Barnaul 656015 Altay Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-11664/06-B. The Debtor can be reached at: Municipal Enterprise Romanovskiy Meat Processing Combine Romanovo Altay Region Russia ROSNEFT OIL: Inks Sakhalin Development Deal with BP --------------------------------------------------- OJSC Rosneft and BP signed Shareholder and operating agreements for joint activity on the East-Schmidt (Sakhalin-5) and the West-Schmidt (Sakhalin-4) licence blocks. Projects are implemented under the effective legal framework between Rosneft (51%) and BP (49%). Operational management of the projects will be conducted by CJSC Elvary Neftegas established in 2003 for exploration on the Kaigansko-Vasuykansky licence block (Sakhalin-5). It is planned that exploration activities on both blocks including drilling of 6 wells will be financed by BP until commerciality is confirmed; following commercial discovery the expenses will be reimbursed from Rosneft's share of production. Subsoil users of the blocks are two 100% Rosneft subsidiaries CJSCs "Vostok Schmidt Neftegas" and "Zapad Schmidt Neftegas". Exploration on the blocks and design of the joint development strategy on Sakhalin-4 and Sakhalin-5 are currently being conducted. Set up of joint production and transportation infrastructure will allow optimisation of the projects' capex and may support the creation of the island's biggest oil and gas complex in the North Sakhalin. Management of the companies believes BP's considerable offshore knowledge combined with more than 75 years of Rosneft's experience in Sakhalin would allow the most effective use of modern technologies and compliance with health, safety, security and environmental requirements. Lord Browne and Sergey Bogdanchikov signed a joint statement expressing satisfaction with the achieved agreements that open up new opportunities for both companies at the next stage of their cooperation. "These agreements are the major step in the ongoing cooperation of our companies offshore Sakhalin," the companies said in a statement. "We would like to congratulate employees of Rosneft and BP who worked on the agreements and wish them every success in 2007 and in the future". About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. ROSNEFT OIL: Repays US$150-Million Five-Year Eurobond ----------------------------------------------------- OJSC Rosneft made the final coupon and maturity payment to retire its five-year Eurobond issue for US$150 million on Nov. 20, 2006. The bond issue was placed in November 2001 as the first corporate Eurobond from a Russian issuer following the country's financial crisis in 1998. The terms of the bonds included a biannual coupon payment equivalent to over 12% interest per annum. Rosneft is pleased to confirm that all payments over the life of the bonds have been paid in full and on time. Both favorable market conditions and Rosneft's increased profitability and resulting strengthened financial profile have allowed the Company to substantially improve its financing terms over the past several years, as evidenced by the Company's recent bank facilities including a US$2 billion loan signed in February 2006 at the rate of Libor plus 65 basis points. Rosneft management continues to work to optimize funding sources and improve borrowing terms, thereby lowering the Company's cost of capital and improving returns to shareholders. About Rosneft About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. STAL-SNAB LLC: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Arbitration Court of Perm Region commenced bankruptcy supervision procedure on LLC Stal-Snab. The case is docketed under Case No. A50-31652/2005-B. The Temporary Insolvency Manager is: A. Smirnov Post User Box 246 Lysva 618900 Perm Region Russia The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: LLC Stal-Snab Vosstaniya Str. 12 617113 Perm Region Russia TAMYR CJSC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Bashkortostan Republic commenced bankruptcy supervision procedure on CJSC Tamyr. The case is docketed under Case No A07-14704/06-G-FLE. The Temporary Insolvency Manager is: M. Mulyukov Post User Box 20 Main Post Office Ufa 450000 Bashkortostan Republic Russia The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: CJSC Tamyr Apartment 814 Khalturina St. 39 Ufa Bashkortostan Republic Russia TELEPORT-TP CJSC: Bankruptcy Hearing Slated for February 27 ----------------------------------------------------------- The Arbitration Court of Moscow will convene at 11:30 a.m. on Feb. 27, 2007, to hear the bankruptcy supervision procedure on CJSC Teleport-Tp (TIN 7717023519). The case is docketed under Case No. A40-63127/06-78-1168 B. The Temporary Insolvency Manager is: M. Chernyj Mira Pr. VVTs 129223 Moscow Region Russia The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Teleport-Tp Mira Pr. VVTs 129223 Moscow Region Russia TROITSKIY COMBINE: Court Names G. Popov to Manage Assets -------------------------------------------------------- The Arbitration Court of Chelyabinsk Region appointed Mr. G. Popov as Insolvency Manager for OJSC Troitskiy Combine Of Beverages (TIN 7418011716). He can be reached at: G. Popov Office 82 Komsomolskiy Pr. 11 454008 Chelyabinsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-13127/2006-52-100. The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Troitskiy Combine Of Beverages Lovchikova Str. 41 Troitsk 457100 Chelyabinsk Region Russia URALSVYAZINFORM OAO: Fitch Revises Ratings' Outlook to Stable ------------------------------------------------------------- Fitch Ratings changed the Outlooks on OAO Uralsvyazinform's Issuer Default and National Long-term ratings to Stable from Negative. The Issuer Default rating is affirmed at B+ and the National Long-term rating at A-. The Short-term rating is affirmed at B. The company's three domestic bonds of RUR2 billion, RUR2 billion and RUR3 billion are affirmed at National Long-term A-. At the same time, Fitch assigned Urals' RUR3-billion bond issue 7 maturing in March 2012 a National Long-term A- rating. The Outlook change reflects Urals' plans to reign in its capital expenditure, which should have a positive impact on its free cash flow generation and leverage. The ratings reflect the company's strong and stable fixed-line and mobile market positions in its operational area in the Urals and part of Western Siberia. Its market position in local services is unlikely to be rivaled in the foreseeable future while a mass network upgrade has improved service quality, which should help maintain and strengthen its position in the corporate segment. Urals has largely completed an overhaul of its fixed-line backbone infrastructure and significantly upgraded its last-mile network, with digitalization expected to reach 73% at end-2006. Its network is the most extensive in the region and, after its recent modernization, is capable of offering a wide range of VAS. Demand for such services, most notably broadband internet, remains strong, providing the company with good growth opportunities in VAS. However, in absolute terms VAS revenue contribution has been modest. Deregulation of the long-distance market in January 2006 strengthened Urals' role as a core infrastructure provider and alleviated competition pressure, although newer mobile and VoIP technologies remain key threats. The introduction of calling party pays rule in July 2006 is to have a modestly positive effect on revenues. Although Urals faces significant regulatory risk, such as the threat of the endorsed tariff increases being delayed or insufficient to compensate for a rise in costs, the level of cross-subsidization has reduced markedly, making regulatory risk less of a concern. In the mobile segment the company has successfully defended its market share, while cost efficiencies at both the fixed-line and mobile networks make Urals well equipped to withstand future competitive pressures. The ratings also reflect the dominant influence of the company's majority shareholder, Svyazinvest, on the strategic decision-making process at Urals and its lobbying support. Urals' leverage is somewhat higher than its direct peers with net debt/EBITDA of 2.5x at end-2005. In 2006 the management is planning to slash capital expenditure by significant 28% yoy to around RUR8billion. Although this is unlikely to be sufficient to turn the company's free cash flow positive, in relative terms Fitch expects EBITDA growth to outpace debt increase so that Urals' leverage metrics are likely to ease. The company is expected to return to being free cash flow positive in 2007, which will result in net debt/EBITDA of around 2x. At the moment Urals' maturity profile is heavily skewed towards short-term debt with maturities of up to two years dominating its balance sheet. This exposes it to significant refinancing risks and makes it vulnerable to the debt market sentiment. However, the company has partially addressed this issue; in March 2006 Urals issued an amortizing domestic RUR3 billion bond with a put option in 2009 to refinance a significant portion of its short-term debt. USTYANSKOYE BREAD: Court Names A. Zamaraev to Manage Assets ----------------------------------------------------------- The Arbitration Court of Arkhangelsk Region appointed Mr. A. Zamaraev as Insolvency Manager for OJSC Ustyanskoye Bread Enterprise (TIN 2922006436). He can be reached at: A. Zamaraev Post User Box 18 160004 Vologda Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-3800/2006-28. The Arbitration Court of Arkhangelsk Region is located at: Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: OJSC Ustyanskoye Bread Enterprise Kostylevo St. 20 Ustyanskiy Region Arkhangelsk Region Russia VNESHTORGBANK JSC: Launches Bankcard Servicing of UnionPay ---------------------------------------------------------- JSC Vneshtorgbank has started bankcard servicing of the Chinese processing company UnionPay in its several ATMs, located in Moscow and the regions, bordering the People's Republic of China. Later on, the cards of this payment system will be accepted by the entire ATM network and trade and servicing outlets of both VTB and other banks of the VTB Group. According to VTB, this banking product will be an easy and safe settlements instrument for the Chinese people on the territory of Russia. This will facilitate to further strengthening of trade and economic relations between the two countries. UnionPay is a unique nationwide processing company in China. The company provides services for all financial institutions of China issuing bankcards. The volume of UnionPay paid-up capital is CNY1.65 billion (around US$200 million). The number of UnionPay cards issued is over 900 million. 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's Upgraded to foreign currency and local currency IDR to BBB+ from BBB with a Stable Outlook and Short-term to F2 from F3. Fitch also affirmed the Individual rating at C/D and Support at 2. Fitch also upgraded Vnesheconombank IDR rating to BBB+ from BBB with a Stable Outlook; and Short-term to F2 from F3. Fitch affirmed the Support rating at 2. X5 RETAIL: Completes Acquisition of OOO Metronom AG --------------------------------------------------- X5 Retail Group N.V. discloses of the closing of the transaction for the acquisition of 100% of OOO "Metronom AG", following the approval of the Supervisory Board of X5 Retail Group N.V. and statuary government approvals, including antimonopoly authorities. As a result, X5 Retail Group N.V. acquired a business having retail premises of around 33,000 square metres in commercially attractive districts of the city of Moscow, as well as a wholly owned distribution and office center in the central part of Moscow with total capacity of more than 17,000 square meters, with a land plot of 4.3 hectares. Through this acquisition, Pyaterochka Holding N.V. also acquired an established and growing operational business of 16 supermarkets in the city of Moscow, with the rights for the retail operations in the Russian Federation under "Merkado" and "Merkadona" trademarks. The total enterprise value of the transaction is US$200 million, of which the enterprise value of the operational business -- excluding the value of real estate -- is around US$50 million. "We are happy to announce closing of a transaction which gives us a valuable addition to our real estate portfolio but also significantly enhances our already leading position in the most important retail market of Russia -- the city of Moscow," Lev Khasis, Group CEO, commented. "The Merkado supermarkets will be integrated into either "Perekrestok" or "Pyaterochka" formats and we will ensure that the services of the acquired chain will be quickly brought to the level of the Group's existing quality standards." "The Merkado chain is a highly profitable business which will further enhance the financial performance of the Group," Vitaliy Podolskiy, Group CFO added. "During the integration process, we will make sure that the operations of the acquired chain are uninterrupted, particularly in terms of continued supplies to the stores and guaranteed payments for already executed supplies." About Pyaterochka Holding Headquartered in the Netherlands, X5 Retail Group N.V. -- http://www.5chka.com/-- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. Pyaterochka's 2004 net revenues were US$1.1 billion. The company has reported unaudited net revenues of US$1.4 billion for 2005. * * * As reported in the TCR-Europe on Aug. 29, Moody's Investors Service downgraded the corporate family rating of Pyaterochka Holding N.V. to B1 from Ba3. Moody's said the outlook for the rating is stable. Standard & Poor's Services affirmed its 'BB-' long-term corporate credit rating on Pyaterochka Holding N.V., the owner of Russia's largest grocery retail network. At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'ruAA-' Russia national scale on Pyaterochka's guaranteed operating subsidiary OOO Agrotorg. The 'ruAA-' Russia national scale on the senior unsecured and senior secured debt issued by related entity Pyaterochka Finance have also been affirmed. All were removed from CreditWatch with negative implications, where they had been placed on April 12, following Pyaterochka's announced acquisition of Russia's leading supermarket chain Perekrestok. S&P said the outlook is negative. YURYEVETSKIY BREWERY: Names A. Gataulin to Manage Assets -------------------------------------------------------- The Arbitration Court of Ivanovo Region appointed Mr. A. Gataulin as Insolvency Manager for OJSC Yuryevetskiy Brewery. He can be reached at: A. Gataulin Kudryashova Str. 106-45 153038 Ivanovo Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17-1852/06-10-B. The Arbitration Court of Ivanovo Region is located at: B. Khmelnitskogo Str. 59B Ivanovo Region Russia The Debtor can be reached at: OJSC Yuryevetskiy Brewery Krasnougolnyj Per. 1 Yuryevets Ivanovo Region Russia ========= S P A I N ========= IM GRUPO: S&P Junks Rating on EUR30-Million Class E Notes --------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR2.03-billion floating-rate notes to be issued by IM GRUPO BANCO POPULAR FTPYME I, Fondo de Titulizacion de Activos, a special purpose entity. The originators of this transaction are Banco de Andalucia S.A., Banco de Castilla S.A., Banco de Credito Balear S.A., Banco de Galicia S.A., Banco de Vasconia S.A., and Banco Popular Espanol, S.A. Grupo Banco Popular is Spain's fifth-largest financial institution. At closing, the originators will sell to the issuer a EUR2.03-billion closed portfolio of secured and unsecured loans granted to Spanish SMEs. To fund this purchase on behalf of the issuer, the trustee, InterMoney Titulizacion, S.G.F.T., S.A., will issue nine classes of floating-rate, quarterly paying notes. This is the fifth securitization undertaken by Grupo Banco Popular. IM GRUPO BANCO POPULAR FTPYME I is the third CLO of loans originated to SME corporate clients and self-employed borrowers. This securitization comprises a mixed pool of underlying mortgage-backed and unsecured assets. Ratings List IM GRUPO BANCO POPULAR FTPYME I, Fondo de Titulizacion de Activos EUR2.03-Billion Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A1 AAA 230 A2 AAA 250 A3 AAA 1,096.6 A4 AAA 150 A5(G) (1) AAA 155.4 B AA 30 C A 28 D BBB 60 E (2) CCC- 30 (1) The class A5(G) notes are protected by a EUR155.4 million guarantee by the Kingdom of Spain. The standalone rating on the class A5(G) notes is 'AAA'. (2) The class E notes will be issued to fund the initial reserve fund. The reserve fund will build to its required amount by the trapping of excess spread. INTERPUBLIC GROUP: Earns US$5.8 Million in Third Quarter 2006 ------------------------------------------------------------- For the three months ended Sept. 30, 2006, Interpublic Group of Companies Inc. recorded US$5.8 million of net income on US$1.4 billion of net revenues, in contrast to a US$102.8 million net loss on US$1.4 billion of net revenues for the same period in 2005. At Sept. 30, 2006, the company's balance sheet showed US$1.9 billion in total assets and US$1.1 billion in total liabilities. A full-text copy of the company's quarterly report is available for free at http://researcharchives.com/t/s?1599 At a regularly scheduled meeting on Oct. 26, 2006, the Board of Directors of the company elected William T. Kerr as a non- management director. Mr. Kerr was also appointed to serve as a member of the Audit Committee and the Compensation Committee. Material Weakness The company has identified numerous material weaknesses in its internal control over financial reporting, Management's Assessment on Internal Control Over Financial Reporting, and Item 9A., Controls and Procedures, of its 2005 Annual Report on Form 10-K. As a result, the company has determined that its internal control over financial reporting was not effective as of Dec. 31, 2005. The company is in the process of implementing remedial measures to address the material weaknesses in its internal control over financial reporting. However, because of its decentralized structure and its many disparate accounting systems of varying quality and sophistication, the company has extensive work remaining to remedy these material weaknesses. The company has developed a comprehensive plan to remedy its material weaknesses, which was presented to the Audit Committee in July of 2006 and is in the process of being implemented. The plan provides for remediation of all the identified material weaknesses by Dec. 31, 2007. Until its remediation is completed, the company will continue to incur the expenses and management burdens associated with the manual procedures and additional resources required to prepare its Consolidated Financial Statements. About Interpublic Group Interpublic Group of Companies Inc. (NYSE:IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draft FCB Group, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. The company has operations worldwide, including in Argentina, Australia, Chile, China, India, Indonesia, Ireland, Japan, Malaysia, Panama, Spain, Thailand, the United States and Venezuela, among others. INTERPUBLIC GROUP: S&P Rates Proposed Floating Rate Notes at B -------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' rating to floating-rate notes due 2010 proposed by Interpublic Group of Cos. Inc., to be issued in exchange for the same principal amount of its old floating-rate notes due 2008. At the same time, Standard & Poor's placed the rating on these notes on CreditWatch with negative implications. The new notes differ from the old notes principally in the lower interest rate and an extension of the maturity date. The ratings on the outstanding debt of Interpublic remain on CreditWatch with negative implications, where they were placed on March 22, 2006, as a result of declines in Interpublic's core business and the rating agency's reduced confidence in the company's prospects for cash flow generation. "We expect to evaluate Interpublic's operating outlook and business strategies within the next several weeks in order to complete our CreditWatch review," said Standard & Poor's credit analyst Deborah Kinzer. "Rating downside is currently limited to one notch," Kinzer added. Ratings List: * Ratings Remaining On CreditWatch * Interpublic Group of Cos. Inc. -- Corporate Credit Rating at B/Watch Neg/B-3 -- Short-Term Credit Rating at B-3/Watch Neg -- Senior Unsecured Debt at B/Watch Neg New Rating: * CreditWatch/Outlook Action * Interpublic Group of Cos. Inc. -- US$250 Million Floating-Rate Notes at B/Watch Neg Interpublic Group of Companies Inc. (NYSE:IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draft FCB Group, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. The company has operations worldwide, including in Argentina, Australia, Chile, China, India, Indonesia, Ireland, Japan, Malaysia, Panama, Spain, Thailand, the United States and Venezuela, among others. =========== S W E D E N =========== HILTON HOTELS: Declares US$0.04 Per Share Dividend -------------------------------------------------- Hilton Hotels Corp. declared a dividend of US$.04 per share, payable in cash on Dec. 15, 2006, to stockholders of record at the close of business on Dec. 1, 2006. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. Trinidad and Tobago * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service's confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp., in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors. Additionally, Moody's held its Ba2 probability-of-default ratings and assigned its LGD4 loss-given-default ratings on these loans and bond debt obligations: Senior Notes with an average rate of 8.1% due 2007 - 2031; Chilean inflation indexed note effective rate 7.65% due 2009; 3.375% Contingently convertible senior notes due 2023; Minimum Leases Commitments; Term Loan A at adjustable rates due 2011; Term Loan B at adjustable rates due 2013; and Revolving loans at adjustable rates, due 2011. Moody's said these obligations have a 53% Projected Loss-Given Default. Moody's also held its (P)Ba2 probability-of-default ratings and assigned a LGD4 loss-given-default rating with a Projected Loss- Given Default to the Company's Senior unsecured debt shelf. HILTON HOTELS: Seeks Modification to Greater Portland Judgment -------------------------------------------------------------- Hilton Hotels Corp. filed a request with the Anti-Trust Division of the United States Department of Justice to modify a Partial Final Judgment in United States vs. Greater Portland Convention Association Inc., et al. The Partial Final Judgment prohibits the defendants -- Greater Portland, Hilton Hotels, ITT Sheraton Corporation of America and Cosmopolitan Investment Inc. -- and their subsidiaries and successors from: -- agreeing with any other hotel to give or promise to give preferential treatment for the purchase of hotel supplies to hotel suppliers; or -- giving or promising to give preferential treatment for the purchase of hotel supplies to any hotel suppliers on the basis of payments, contributions or dues paid by suppliers to any convention bureau. Hiton proposes to add this modification to the original prohibition: "Provided, however, that nothing in this Section shall be construed to prohibit any hotel defendant from: -- developing hotel supply purchasing programs for its owned, managed and franchised hotels; or -- participating in bona fide group purchasing organizations or programs notwithstanding the fact that such organizations or programs may include one or more hotels." Hilton is seeking the modifications to ensure that the Partial Final Judgment would not be interpreted so as to prohibit the defendants from engaging in the specified activities. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. Trinidad and Tobago * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service's confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp., in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors. Additionally, Moody's held its Ba2 probability-of-default ratings and assigned its LGD4 loss-given-default ratings on these loans and bond debt obligations: Senior Notes with an average rate of 8.1% due 2007 - 2031; Chilean inflation indexed note effective rate 7.65% due 2009; 3.375% Contingently convertible senior notes due 2023; Minimum Leases Commitments; Term Loan A at adjustable rates due 2011; Term Loan B at adjustable rates due 2013; and Revolving loans at adjustable rates, due 2011. Moody's said these obligations have a 53% Projected Loss-Given Default. Moody's also held its (P)Ba2 probability-of-default ratings and assigned a LGD4 loss-given-default rating with a Projected Loss- Given Default to the Company's Senior unsecured debt shelf. ===================== S W I T Z E R L A N D ===================== HERCULES INC: Earns US$34.2 Million in Quarter Ended Sept. 30 ------------------------------------------------------------- Hercules Inc. reported a net income of US$34.2 million for the quarterly period ended Sept. 30, 2006, compared to net income of US$24 million for the third quarter of 2005. A net loss of US$3.4 million was reported for the nine months ended Sept. 30, 2006 as compared to net income of US$38.1 million for the same period in 2005. Net income from ongoing operations for the third quarter of 2006 was US$40.9 million as compared to net income from ongoing operations of US$24.6 million in the third quarter of 2005. Net income from ongoing operations for the nine months ended Sept. 30, 2006 was US$102.5 million. Cash flow from operations for the nine months ended Sept. 30, 2006 was US$107.0 million, an increase of US$31.2 million as compared to the same period last year. Net sales in the third quarter of 2006 were US$513.1 million, a decrease of 1% from the same period last year. Excluding the impact of the sale of our majority interest in FiberVisions, sales increased 14% from the same period of last year. Volume and pricing increased by 15% and 2%, respectively. Rates of exchange also increased sales by 2%, while product mix was 5% unfavorable during the quarter. Net sales for the nine months ended Sept. 30, 2006 were US$1.541 billion, an increase of 10% as compared to the same period in 2005, excluding the impact of the FiberVisions transaction. "Our people continue to deliver excellent results with strong growth in sales, earnings and cash flow," commented Craig A. Rogerson, President and Chief Executive Officer. "We continue to drive results through innovation, geographic expansion, a disciplined approach to capital and investment deployment and a focus on cash generation." Excluding the impact of the FiberVisions transaction, net sales in the third quarter of 2006 increased in all regions of the world. Sales increased 21% in North America, 10% in Europe, 5% in Latin America and 6% in Asia Pacific as compared to the same period last year. Reported profit from operations in the third quarter of 2006 was US$72.4 million, an increase of 45% compared with US$50.0 million for the same period in 2005. Profit from ongoing operations in the third quarter of 2006 was US$76.4 million, an increase of 25% compared with US$61.0 million in the third quarter of 2005. Severance, restructuring and other exit costs were US$4.1 million in the third quarter of 2006 as compared to US$9.6 million in the same period last year. Interest and debt expense was US$16.7 million in the third quarter of 2006, down US$5.8 million, or 26%, compared with the third quarter of 2005, reflecting lower outstanding debt balances and improved debt mix, partially offset by increased variable short term rates. Interest expense for the nine months ended Sept. 30, 2006 was US$54.1 million, a decrease of US$13.4 million, or 20%, from the same period of last year. Net debt, total debt less cash and cash equivalents, was US$882.7 million at Sept. 30, 2006, a decrease of US$149.0 million from year-end 2005. Capital spending was US$26.3 million in the third quarter and US$49.2 million year to date. This compares to US$19.8 million and US$45.7 million in the third quarter and year to date periods last year, respectively. Cash outflows for severance, restructuring and other exit costs were US$7.4 million in the quarter and US$20.8 million year to date. Outlook "We remain confident in our growth strategy and optimistic about both earnings and cash flow growth for the balance of the year and as we look to 2007," said Mr. Rogerson. "Aqualon's volumes should continue to be strong across its markets and pricing should show steady improvement. Paper Technologies' volumes are expected to improve, driven by our new product pipeline, and continued pricing discipline should maintain gross margins." Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. * * * The Troubled Company Reporter - Asia Pacific reports that Moody's Investors Service confirmed Hercules Inc.'s Ba2 Corporate Family Rating, in connection with Moody's implementation of its Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Chemicals and Allied Products sectors. ============= U K R A I N E ============= GOLDEN TELECOM: Acquires Corus ISP for US$1.2 Million ----------------------------------------------------- Golden Telecom Inc. discloses the acquisition of 100% interest in ZAO Corus ISP for US$1.2 million. Corus ISP is an alternative telecommunications services provider in Ekaterinburg, the fifth largest and dynamically growing city in Russia. Corus ISP is one of the pioneers of Internet services in Ekaterinburg, presently focusing on broadband access for corporate clients, with its market share estimated at around 7%. Corus ISP has an extensive network in central Ekaterinburg, with around 29 km of owned and leased channels, and more than 120 point of presence. Golden Telecom has provided services to its clients in Ekaterinburg for more than 10 years. Scope and quality of operations were enhanced dramatically when in August 2004 ZAO TeleRoss-Ekaterinburg, OOO UralRelcom and the Ekaterinburg branch of Combellga were merged into the Ekaterinburg branch of Golden Telecom. Successful integration of these companies enabled Golden Telecom to offer a wide range of telecommunication products and services. Currently, the Company is the leading provider of broadband access services, local and zonal telephone services, data communication, and corporate networks development. The Company estimates that it has around 26% of the corporate market and over 10% of the total fixed-line market in Ekaterinburg. This acquisition will place Golden Telecom in the center of Ekaterinburg's communications market due to Corus ISP's network infrastructure and existing business clients, thus increasing the Company's Ekaterinburg market share in the corporate segment to around 33%. "We acquired Corus ISP to further our regional expansion and speed the development of broadband services for corporate and residential clients in Ekaterinburg," Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom noted. "We look forward to providing complementary Internet, data, and voice services which will strengthen our presence in this growing regional market." About Golden Telecom Golden Telecom, Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As reported in the TCR-Europe on Oct. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting the company's strengthened business profile and prudent financial risk management. S&P said the outlook is stable. "The upgrade reflects the company's strengthened business profile, with strong market shares and a leading consolidator position in Russia's corporate fixed-line market," said Standard & Poor's credit analyst Lorenzo Sliusarev. MOBILE TELESYSTEMS: Assails Bitel's Press Release ------------------------------------------------- Mobile TeleSystems OJSC disclosed that in light of numerous requests from the media regarding the press release issued on behalf of Bitel, MTS deems it necessary to make these statements: -- the information distributed on behalf of Bitel is part of an unprincipled propaganda campaign carried out with the aim of pressuring the courts to render a decision on the title of ownership of Bitel; -- the dissemination of this information by Bitel coincides with developments in court proceedings in the Isle of Man that MTS views as favorable to the Company. -- MTS in the past did not comment on the information issued by the current management of Bitel as it was unlawfully appointed and will refrain from doing so in the future; -- if the statements issued by the current management of Bitel are received and taken into consideration by any court, MTS will be more than happy to provide its fullest cooperation. -- as always MTS will inform the public of all the significant changes surrounding Bitel. Also, on Nov. 8, 2006, MTS sent official letters to the management of OJSC Vimpel-Communications and Telenor that stated its position on Bitel and warned of the possibility of criminal proceedings in the event that Vimpelcom acquired the Kyrgyz GSM operator Sky Mobile, which is owned by Altimo and received Bitel's assets after they were transferred by Bitel's unlawful management. The company appreciated the fact that Vimpelcom's Board of Directors did not make the decision to acquire Sky Mobile. About Mobile TeleSystems Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- company provides global system for mobile communications technology-based mobile telecommunications services in Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). As of Dec. 31, 2005, MTS had a working capital deficit of US$631.6 million, compared with a US$189 million working capital deficit at Dec. 31, 2004. MTS is rated to BB-/outlook stable by S&P in and Ba3/outlook stable by Moody's. PRIVATBANK CJSC: Fitch Keeps Issuer Default Rating at B ------------------------------------------------------- Fitch Ratings affirmed CJSC Privatbank's ratings at Issuer Default B, Short-term B, Individual D, and Support 4. The Outlook on the Issuer Default rating remains Positive, reflecting that of the Ukrainian sovereign. "In light of the bank's improving core profitability, its scale and general improvements in the operating environment, Privat's standalone financial strength is now sufficient to warrant a B IDR without considering possible support from the Ukrainian authorities," Lindsey Liddell, director of Fitch's Financial Institutions Group diclosed. Previously, the bank's IDR had been driven solely by potential support being forthcoming from the Ukrainian authorities. However, the Positive Outlook on Privat's IDR continues to reflect that of the Ukrainian sovereign, since a sovereign upgrade would raise the support floor for the bank. Privat's ratings reflect its modest capitalization, particularly in view of ongoing rapid loan growth, relatively high loan concentrations and weaknesses in the operating environment. However, the ratings also consider the bank's quite low funding concentration, broad domestic franchise and sizeable market shares, which should stand it in good stead in the Ukrainian banking market notwithstanding rising competition. A significant improvement in capitalization, which Fitch deems unlikely, and in operating efficiency, along with franchise expansion and further improvements in the operating environment, could contribute to improvement in Privat's standalone creditworthiness. Downward pressure on the Individual rating could result from deterioration in capitalization or a failure to manage the credit and operational risks associated with rapid growth, notably in retail lending. Privat is the largest bank in Ukraine by total assets, equity, retail deposits and number of branches. Three individuals with extensive industrial assets ultimately own around 94% of the bank. The remaining 6% is held by its senior management. VNESHTORGBANK JSC: Launches Bankcard Servicing of UnionPay ---------------------------------------------------------- JSC Vneshtorgbank has started bankcard servicing of the Chinese processing company UnionPay in its several ATMs, located in Moscow and the regions, bordering the People's Republic of China. Later on, the cards of this payment system will be accepted by the entire ATM network and trade and servicing outlets of both VTB and other banks of the VTB Group. According to VTB, this banking product will be an easy and safe settlements instrument for the Chinese people on the territory of Russia. This will facilitate to further strengthening of trade and economic relations between the two countries. UnionPay is a unique nationwide processing company in China. The company provides services for all financial institutions of China issuing bankcards. The volume of UnionPay paid-up capital is CNY1.65 billion (around US$200 million). The number of UnionPay cards issued is over 900 million. 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's Upgraded to foreign currency and local currency IDR to BBB+ from BBB with a Stable Outlook and Short-term to F2 from F3. Fitch also affirmed the Individual rating at C/D and Support at 2. Fitch also upgraded Vnesheconombank IDR rating to BBB+ from BBB with a Stable Outlook; and Short-term to F2 from F3. Fitch affirmed the Support rating at 2. =========================== U N I T E D K I N G D O M =========================== ALBION SPRING: Creditors' Meeting Slated for December 4 ------------------------------------------------------- Creditors of Albion Spring Company Ltd. (fka Willoughby (9) Limited) (Company Number 02833780) will meet at 10:00 a.m. on Dec. 4 at: The Park Inn Birmingham Road West Bromwich B70 6RS 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 Dec. 1 at: Mark Hopkins and Robert Hunt Joint Administrative Receivers Pricewaterhousecoopers LLP Cornwall Court 19 Cornwall Street Birmingham B3 2DT United Kingdom Tel: [44] (121) 200 3000 Fax: [44] (121) 200 2464 PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. AMBER COMMUNICATIONS: Appoints Gerald Irwin as Liquidator --------------------------------------------------------- Gerald Irwin of Irwin & Company was appointed Liquidator of Amber Communications & Networks Limited on Nov. 13 for the creditors' voluntary winding-up procedure. The company can be reached at: Amber Communications & Networks Limited Drews Lane Birmingham West Midlands B8 2SL United Kingdom Tel: 0121 246 4644 Fax: 0121 246 4744 ANDREW KELLARD: Creditors' Meeting Slated for November 30 --------------------------------------------------------- Creditors of Andrew Kellard Associates Ltd. (Company Number 05134138) will meet at 10:30 a.m. on Nov. 30 at: Smith & Williamson Limited No. 1 Bishops Wharf Walnut Tree Close Guildford GU1 4RA 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. 29 at: Anthony Murphy Joint Administrator Smith & Williamson Ltd. No 1 Bishops Wharf Walnut Tree Close Guildford GU1 4RA United Kingdom Tel: 01483 407 100 Fax: 01483 301 232 Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. ASPECT VEHICLE: Names David Norman Kaye Liquidator -------------------------------------------------- David Norman Kaye of Crawfords was appointed Liquidator of Aspect Vehicle Engineering Limited on Nov. 10 for the creditors' voluntary winding-up procedure. The company can be reached at: Aspect Vehicle Engineering Limited Unit 13 Maritime Enterprise Park Atlas Road Bootle Merseyside L20 4DY United Kingdom Tel: 0151 922 6292 ATRIUM TRAINING: Creditors' Meeting Slated for November 30 ---------------------------------------------------------- Creditors of Atrium Training Services Ltd. (Company Number 04049510) will meet at 10:00 a.m. on Nov. 30 at: Rothman Pantall & Co. Clareville House 26-27 Oxendon Street London SW1Y 4EP 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. 29 at: R. D. Smailes Joint Administrator Rothman Pantall & Co. Clareville House 26-27 Oxendon Street London SW1Y 4EP United Kingdom Tel: +44 (0) 20 7930 7272 Fax: +44 (0) 20 7930 9849 Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. It is one of the largest independent firms of Chartered Accountants in the region, and rank in the top 40 in the United Kingdom. BODY ULTIMATE: Brings In Liquidators from Wilson Field ------------------------------------------------------ Lisa Hogg and Claire Foster of Wilson Field were appointed Joint Liquidators of Body Ultimate International Limited on Nov. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: Body Ultimate International Limited 50-54 Farriers Way Bootle Merseyside L30 4XL United Kingdom Tel: 0870 870 1501 BRITISH AIRWAYS: Inks Code Share Pact with Caribbean Airlines ------------------------------------------------------------- British Airways has signed a code share accord with Caribbean Airlines, which will take the place of British West Indies Airlines on Jan. 1, Newsday reports. According to a press statement, Caribbean Airlines' flight code will be placed on British Airways' services from Port-of-Spain as well as from Barbados and Antigua. Newsday relates that British Airways will launch service from Port-of-Spain to London Gatwick, with three flights each week via Barbados on a Boeing 777. British Airways operates three flights weekly from Crown Point, Tobago, Newsday states. "We welcome Caribbean Airlines as our latest code share partner and look forward to our future relationship. We are delighted to be starting service from Port-of-Spain. Port-of-Spain is the industrial capital of the Southern Caribbean as well as a thriving leisure destination," Dr. Oliver King, commercial senior vice president of British Airways' Latin America and Caribbean operations, told Newsday. About British West Indies Airlines British West Indies aka BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BROWNE TRANSPORT: Claims Filing Period Ends December 9 ------------------------------------------------------ Creditors of Browne Transport Limited have until Dec. 9 to send their names and addresses and particulars of their debts or claims and the names and addresses of the Solicitors (if any) to appointed Joint Liquidators Robert Michael Young and Ian Michael Rose at: Begbies Traynor The Old Barn Caverswall Park Caverswall Lane Stoke-on-Trent ST3 6HP United Kingdom The company can be reached at: Browne Transport Limited Unit 3 New Road Rainham Trading Estate Rainham Essex RM138RA United Kingdom Tel: 079 6625 9403 CA INC: Declares US$0.04 Per Share Quarterly Cash Dividend ---------------------------------------------------------- CA Inc.'s board of directors has declared a regular, quarterly cash dividend of US$0.04 per share. The dividend will be paid on Dec. 29, 2006, to stockholders of record at the close of business on Dec. 15, 2006. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries including France, Germany, Italy and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Nov. 9, Moody's Investors Service affirmed CA's Ba1 senior unsecured rating and negative rating outlook following the company's announcement of fiscal second quarter financial results and fiscal 2007 revised guidance. In a TCR-Europe report on Oct. 10, Moody's confirmed its Ba1 Corporate Family Rating for CA Inc. in connection with Moody's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Technology Software sectors. Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on CA Inc., and removed them from CreditWatch where they were placed on July 5, with negative implications. S&P said the outlook is negative. CROWN HOLDINGS: Seeks Noteholders' OK on Add'l US$200-Mil. Debt --------------------------------------------------------------- Crown Holdings Inc. commenced a solicitation of consents from holders of 6-1/4% First Priority Senior Secured Notes due 2011 to incur an additional US$200 million of pari passu first priority indebtedness. The company also want to make certain amendments to the indenture relating to the Notes dated as of Sept. 1, 2004, among Crown European Holdings SA, a French societe anonyme, as guarantor and Wells Fargo Bank N.A. as trustee. The Proposed Amendments will amend certain provisions contained in Sections 1.01 and 4.10(b) of the Indenture: -- to increase the company's and its subsidiaries' ability to incur indebtedness and liens, and -- to make restricted payments, including without limitation, redemption, repurchase, or other acquisition or retirement of shares of its common stock, by conforming certain terms and conditions set forth in the Indenture to the terms and conditions of its other senior debt agreements. Among other things, the Proposed Amendments will allow the company to incur an additional US$200,000,000 of Pari Passu First Priority indebtedness secured by the collateral securing the Notes and to make US$100,000,000 of additional restricted payments of any type. The Consent Solicitation will expire at 5:00 p.m., New York City time, on Dec. 4, 2006. The approval of the proposed amendments requires the consent of holders of at least a majority in aggregate principal amount of the outstanding Notes. Philadelphia, Pa.-based Crown Holdings Inc. (NYSE: CCK) -- http://www.crowncork.com/-- through its affiliated companies, supplies packaging products to consumer marketing companies around the world. The company has operations in Argentina, China and Eastern Europe. * * * Standard & Poor's Ratings Services affirmed its 'BB-' rating and its '2' recovery rating on Crown Holdings Inc.'s existing US$1.5 billion credit facilities including its US$200 million add-on senior secured term loan B due 2012. CT PACKAGING: Creditors' Meeting Slated for December 4 ------------------------------------------------------ Creditors of CT Packaging (U.K.) Ltd. (Company Number 05840445) will meet at 10:30 a.m. on Dec. 4 at: UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH 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 Dec. 1 at: Andrew Andronikou Joint Administrator UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH United Kingdom Tel: 020 7216 4600 Fax: 020 7638 2159 DESIGNLAB SYSTEMS: Creditors' Claims Due Dec. 13 ------------------------------------------------ Creditors of Designlab Systems Ltd. have until Dec. 13 to send their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator David N. Hughes at: Janes Owen House Trinity Lane Cheltenham Gloucestershire GL52 2NT United Kingdom The company can be reached at: Designlab Systems Ltd. 9 Darblay Street City Of Westminster London W1F 8DR United Kingdom Tel: 020 7437 5621 Fax: 020 7734 1582 DTE SOFTWARE: Liquidator Sets December 13 as Claims Bar Date ------------------------------------------------------------ Creditors of DTE Software Systems Ltd. have until Dec. 13 to send their full names and surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator David N. Hughes at: Janes Owen House Trinity Lane Cheltenham Gloucestershire GL52 2NT United Kingdom The company can be reached at: DTE Software Systems Ltd. 8 Partridge Close Cepen Park North Chippenham Wiltshire SN14 6XY United Kingdom Tel: 01249 445052 ENRON CORP: Wants Energen, Et Al. Settlement Pacts Approved ----------------------------------------------------------- The reorganized Enron Corp. and its debtor-affiliates ask the Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to approve six separate settlement agreements between these parties: Debtor Party Customer ------------ -------- Enron North America Corp. Alabama Gas Corporation & Energen Resources Corp. Enron Energy Services, Inc. Pacific Telesis Group, nka AT&T Teleholdings, Inc. EESI Bay City Flower Co., Inc. ENA Total International Limited Enron Power Marketing, Inc. Mississippi Delta Energy Agency Enron Energy Services North America, Inc. T Group America, Inc. According to Evan R. Fleck, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, the Reorganized Debtors and the Customers were parties to various prepetition contracts relating to the Debtors' supply of power and other services to the Customers. Enron Corp. issued various guarantees as credit support for the Contracts with Alabama Gas and Energen Resources. Certain disputes between the Debtors and the Customers arose under the prepetition contracts. The Debtors commenced adversary proceedings against certain of the Customers: Date Debtor Defendants Case No. ---- ------ --------- -------- 08/09/04 ENA Alabama & Energen 04-03769 05/02/06 EPMI Mississippi Delta 06-01454 07/27/06 ENA Total International 06-01674 Following negotiations regarding the Contracts, the parties entered into the settlements agreements and agree that: (1) the Customers will make a settlement payment to the applicable Reorganized Debtor or Debtor; (2) they will mutually release each other from all claims related to the Contracts; (3) all liabilities scheduled in favor of Alabama Gas and Energen Resources, Pacific Telesis, and Bay City will be deemed irrevocably withdrawn, with prejudice, and to the extent applicable expunged; and (4) the Adversary Proceedings will be dismissed. The settlement agreement with Alabama Gas and Energen Resources also provides that all claims filed by Alabama and Energen against ENA and the applicable Reorganized Debtor in connection with the Contracts will be deemed withdrawn, with prejudice, and to the extent applicable expunged, provided, however, that Claim Nos. 7276 and 7277 will each be reduced and allowed for $12,500,000. 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 T. Thorn Settlement Agreement ------------------------------------------------------------ Enron Corp. and its debtor-affiliates ask the Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement agreement between the Debtors and Terence H. Thorn, a former employee for the Debtors. On Aug. 15, 2001, Terence H. Thorn received US$420,000 from Enron Corp. as severance payment for his employment term with the Debtors, recounts Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York. On Oct. 15, 2002, Mr. Thorn filed three claims against Enron -- Claim No. 1800700 for US$100,826, Claim No. 1800800 for US$1,747, and Claim No. 1793800 for US$805,560. On the same day, Mr. Thorn also filed Claim No. 1800800 for US$617,464 against Enron Global Markets LLC. On Dec. 1, 2003, the Official Committee of Unsecured Creditors, on behalf of Enron and Enron Global, commenced Adversary Proceeding No. 03-93615 to recover, among other things, a transfer made by Enron to Mr. Thorn. In their 83rd and 88th Omnibus Claims Objections, the Reorganized Debtors sought to: * reduce without allowance Claim No. 1800700 to US$23,540; * reclassify without allowance Claim No. 1800800 as a general unsecured claim; and * reduce without allowance Claim No. 1800900 to US$394,085 and reclassify it as a general unsecured claim against Enron. On May 12, 2005, the Court sustained the 83rd Omnibus Claims Objection with respect to Claim Nos. 1800700, 1800800, and 1800900. To settle their disputes, the parties entered into a settlement, under which the parties agreed that: (1) Claim No. 1793800 will be reduced to US$700,000 and allowed as a Class 4 General Unsecured Claim under the Plan; (2) Claim Nos. 1800700, 1800800, and 1800900 will be disallowed in their entirety and expunged; (3) the Adversary Proceeding will be dismissed with prejudice; and (4) the parties will mutually release each other from all claims related to the transfer payment and the Adversary Proceeding. Pursuant to Rule 9019(a) of the Federal Rules of Bankruptcy Procedure, the Creditors Committee asks the Court to approve the settlement. 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) FEDERAL-MOGUL: Judge Fitzgerald Okays DIP Credit Pact Amendment --------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware approved an amendment to Federal- Mogul Corporation and its debtor affiliates' Final DIP Order, to permit the Debtors to pledge up to an additional US$15,000,000 to secure obligations under various hedging agreements. The Court also authorized the Debtors to file the Fee Letter under seal. The Fee Letter will remain under seal and confidential, and will not be made available to anyone other than the Court, the U.S. Trustee, certain parties to whom the Debtors have provided copies of the Fee Letter, and the Plan Proponents' counsel. Subject to Citigroup USA Inc.'s consent, a redacted copy of the Fee Letter will be made available to any party who requests for the copy. Debtors Want to Pledge Another US$15-Mil. to Secure Hedging Obligations The Bankruptcy Court issued an order in November 2005 authorizing the Debtors to enter into and perform obligations under an amended debtor-in-possession credit agreement, and continue to use cash collateral and provide adequate protection. Pursuant to the Final DIP Order, the Debtors were permitted to grant pari passu liens and superpriority claims to Citicorp USA Inc. and certain lenders party to a 2004 Credit Agreement in respect of the Debtors' obligations under postpetition hedge agreements with respect to ordinary course hedging transactions, in an aggregate notional amount of up to US$30,000,000. The US$30,000,000 limitation on Postpetition Hedging Agreements had also been included in a prior DIP order issued in 2004. Scotta E. McFarland, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub P.C., in Wilmington, Delaware, relates that the Debtors utilize the Postpetition Hedging Agreements to manage, among other things, their exposure to fluctuating commodities prices. By doing so, the Debtors are able to limit the volatility of the prices of raw materials necessary for their manufacturing businesses. That, in turn, allows for greater certainty in managing the Debtors' finances and improved financial forecasting, as well as guarding against the prospect that a radical increase in the price of necessary materials could reduce the Debtors' profitability. In addition, the Debtors' management believes that utilizing the Postpetition Hedging Agreements has resulted in a net cost savings to the Debtors' estates. Since the entry of the 2004 DIP Order, the Debtors have managed to enter into and secure their obligations under various Postpetition Hedging Agreements while remaining within the US$30,000,000 limit imposed by the Final DIP Order. However, Ms. McFarland notes, the prices of many of the Debtors' raw materials have risen sharply in the last several months, and the prices for new hedging agreements relating to those materials have risen accordingly. As a result, while the US$30,000,000 limit was previously adequate to accommodate all of the Debtors' needs to secure obligations under the Postpetition Hedging Agreements, that limit now prevents the Debtors from hedging the quantity of raw materials on which they had previously been able to hedge their price exposure, Ms. McFarland says. Within the week of Sept. 18, 2006, the agent for the postpetition lenders advised the Debtors that they had nearly exhausted their ability to enter into new Postpetition Hedging Agreements. The Debtors intend to continue entering into Postpetition Hedging Agreements with respect to roughly the same level of raw materials as the Debtors have been hedging their exposure on previously. Accordingly, the Debtors ask the Court to modify the Final DIP Order to permit them to pledge up to an additional US$15,000,000 to secure obligations under various hedging agreements. The Debtors are not seeking to modify the Amended DIP Agreement, Ms. McFarland explains. The Debtors are seeking to take advantage of the Agreement's existing provision, which permits them to incur as "[l]iens consisting of deposits with derivative traders as may be required pursuant to the terms of the International Swap Dealers Association Master Agreements in connection with the Borrowers' foreign exchange, commodities and interest hedging programs in an aggregate amount not to exceed at any time US$15,000,000." Consistent with the carve-out for Permitted Liens, the Debtors also want the modified Final DIP Order to confirm that the liens on the cash collateral deposited to secure the Hedging Deposit Transactions will have priority over the liens granted to secure other obligations. The Debtors assert that modification of the Final DIP Order will allow them to further control the impact of raw materials pricing on their businesses, resulting in greater predictability of future performance results. The Debtors assure the Court that their request will not prejudice their creditors but will, instead, benefit all parties-in-interest by providing opportunity to enhance the Debtors' ability to manage risk and price volatility before expiration of their current DIP financing facility. Moreover, the Debtors have conferred with representatives of the agents for both the prepetition and postpetition lenders and understand that the agents have no objection to their Motion. Before the commitments under the Final DIP Order expires on Dec. 9, 2006, the Debtors will seek approval of further amendments to the Amended DIP Agreement to incorporate relief similar to the Motion. The Motion only seeks temporary relief in that it will be superseded by the Amended DIP Agreement in the next few months, Ms. McFarland says. FMO Wants DIP Facility Extended to July 2007 The Debtors also want to modify certain terms under their existing US$775,000,000 postpetition debtor-in-possession facility, to: (a) extend its expiry date from Dec. 9, 2006, through the earlier of: (1) the substantial consummation of the Debtors' Plan of Reorganization; and (2) July 1, 2007; (b) effect amendments necessary to permit the Debtors to implement the company Voluntary Arrangements for certain of the U.K. Debtors and position themselves for a successful emergence from Chapter 11; and (c) accommodate changes in the Debtors' business since the time they entered into the Existing DIP Agreement. Scotta E. McFarland, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, in Wilmington, Delaware, relates that the Debtors and Citicorp USA, Inc., the administrative agent under the Existing DIP Facility, negotiated and agreed to the proposed amendments. Pursuant to a Commitment Letter dated Oct. 23, 2006, CUSA will use its best efforts to arrange a syndicate of lenders for: -- an amended US$500,000,000 superpriority senior secured DIP revolving credit facility; and -- an amended US$275,000,000 superpriority senior secured DIP term loan facility. CUSA also commits to provide up to US$55,000,000 of the Revolving Credit Facility. Citigroup Global Markets, Inc., will serve as sole lead arranger and bookrunner for the Modified DIP Facility. CUSA will act as sole administrative agent and sole collateral agent for the Modified DIP facility. CUSA's commitment and CGMI's undertakings will terminate on Dec. 11, 2006. In return for the Commitment, the Debtors will pay CUSA undisclosed amounts as arrangement and other fees, as well as other expenses incurred in connection with the negotiation, documentation, approval and closing of the transactions contemplated by the Commitment Letter. Specific terms with respect to CUSA's fees are included in a Fee Letter. The Debtors, therefore, seek the Court's authority to enter into a Commitment and Fee letters with CUSA and CGMI. In a separate filing, the Debtors sought and got permission from the Court to file the Fee Letter under seal. Proceeds of the Modified DIP Facility will be used, among others, to fund: * the Debtors' working capital needs and other general corporate services; and * the retention of certain intercompany loan notes pursuant to a Settlement Agreement dated September 26, 2005, among Federal-Mogul Corporation; T&N Limited; the U.K. Administrators; the U.K. Plan Proponents; High River Limited Partnership; and the U.K. Pension Protection Fund. Ms. McFarland explains that the extension of the Existing DIP Facility's expiry date will give the Debtors access to financing while they are under Chapter 11 protection. Ms. McFarland says amendments to certain terms of the Existing DIP Facility are necessary to: -- address certain tax-related restructurings and take advantage of certain tax efficiencies; -- permit the Debtors to perform any remaining obligation under the company Voluntary Arrangements, which became effective on October 11, 2006; and -- allow the Debtors to progress toward their successful emergence from Chapter 11 protection. If the terms of the Existing DIP Facility are modified, the Debtors will be able to use their financing more effectively and in a manner that more accurately tracks their present strategic business plan, Ms. McFarland adds. CUSA and the Debtors have not yet agreed to the precise terms of the amendments, Ms. McFarland notes. Among other amendments, the Debtors propose to increase the permitted amount for first priority liens and superpriority claims granted to certain Hedging Parties. The increase in Permitted Liens will help the Debtors in managing their exposure to fluctuations in raw materials pricing and interest rate risk, Ms. McFarland says. Ms. McFarland also notes that substantially all of the other material terms of the Debtors' postpetition financing will remain unchanged. Ms. McFarland adds that the Debtors will also seek the Court's permission to enter into any ancillary documents that may be necessary to effect the terms of the Modified DIP Agreement, including an amended security and pledge agreement. Each Plan Proponent either does not object to the request at present, or is anticipated by the Debtors to not object to the request, Ms. McFarland further relates. Judge Fitzgerald will conduct a hearing on the Debtors' request on Nov. 28, 2006, at 1:30 p.m. in Pittsburgh, Pennsylvania. Deadline to file objections will be on Nov. 9. A full-text copy of CUSA and CGMI's Commitment Letter is available for free at http://ResearchArchives.com/t/s?1585 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). FORD CREDIT: Fitch Rates US$59-Million Class D Notes at BB+ ----------------------------------------------------------- Fitch rates the Ford Credit Auto Owner Trust 2006-C asset backed notes: -- US$664,000,000 class A-1 5.3574% 'F1+'; -- US$205,000,000 class A-2a 5.29% 'AAA'; -- US$856,441,000 class A-2b floating-rate 'AAA'; -- US$509,551,000 class A-3 5.16% 'AAA'; -- US$325,000,000 class A-4a 5.15% 'AAA'; -- US$251,838,000 class A-4b floating-rate 'AAA'; -- US$88,795,000 class B 5.3% 'A'; -- US$59,196,000 class C 5.47% 'BBB+'; -- US$59,196,000 class D 6.89% 'BB+'. The ratings on the notes are based upon their respective levels of subordination, the specified credit enhancement amount, and the yield supplement overcollateralization amount. All ratings reflect the transaction's sound legal structure, the high quality of the retail auto receivables originated by Ford Motor Credit Company, and the strength of Ford Credit as servicer. The weighted average APR in the 2006-C transaction is 4.401%. As with previous deals, the 2006-C transaction incorporates a YSOC feature to compensate for receivables with interest rates below 8.50%. The YSOC is subtracted from the pool balance to calculate bond balances and the first priority, second priority, and regular principal distribution amounts, resulting in the creation of 'synthetic' excess spread. These amounts enhance the receivables' yield and are available to cover losses and turbo the class of securities then entitled to receive principal payments. Initial enhancement for the class A notes as a percentage of the adjusted collateral balance is 5.5%. Initial enhancement for the class B notes is 2.5%. Initial enhancement for the class C notes is 0.50% provided by the reserve account. On the closing date, the aggregate principal balance of the notes will be 102% of the initial pool balance less the YSOC. The class D notes represent the undercollateralized 2%. During amortization, both excess spread and principal collections are available to reduce the bond balance. Hence, if excess spread is positive, the bonds will amortize more quickly than the collateral. It is this mechanism that ensures that the class D notes are collateralized and the specified credit enhancement level is achieved. Furthermore, the 2006-C transaction provides significant structural protection through a shifting payment priority mechanism. In each distribution period, a test will be performed to calculate the amount of desired collateralization for the notes versus the actual collateralization. If the actual level of collateralization is less than the desired level, then payments of interest to subordinate classes may be suspended and made available as principal to higher rated classes. Based on the loss statistics of Ford Credit's prior securitizations and Ford's U.S. retail portfolio performance, Fitch expects consistent performance from the pool of receivables in the 2006-C pool. For the nine months ending Sept. 30, 2006, average net portfolio outstanding totaled around US$57.7 billion, total delinquencies were 2.10%, and net losses were 0.63% of the average net portfolio outstanding. GATEWAY CARAVANS: Brings In Lines Henry as Joint Administrators --------------------------------------------------------------- Neil Henry and Michael Simister of Lines Henry were appointed joint administrators of Gateway Caravans Ltd. (Company Number 05258660) on Nov. 13. The administrators can be reached at: Neil Henry and Michael Simister Lines Henry Sixth Floor Grafton Tower Stamford New Road Altrincham Cheshire WA14 1DQ United Kingdom Tel: 0161 929 1905 Fax: 0161 929 1977 Gateway Caravans Ltd. can be reached at: Kelvin Business Park Grange Road Batley West Yorkshire WF17 6PB United Kingdom Tel: 01924 479058 GLASS FIBRE: Hires Liquidator from Jackson Gregory & Co. -------------------------------------------------------- Peter Anthony Jackson of Jackson Gregory & Co. was appointed Liquidator of Glass Fibre Design Limited (formerly Bucklemile Limited) on Nov. 9 for the creditors' voluntary winding-up procedure. The company can be reached at: Glass Fibre Design Limited Unit F5 Halesfield 23 Telford Shropshire TF7 4NY United Kingdom Tel: 01952 580 800 Fax: 01952 581 581 GOLDEN FALLS: Creditors' Claims Due December 15 ----------------------------------------------- Creditors of Golden Falls Limited have until Dec. 15 to send their full forenames and surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Richard Neville at: Neville & Co. 10 & 11 Lynher Building Queen Anne's Battery Plymouth PL4 0LP United Kingdom The company can be reached at: Golden Falls Limited 10 Pendennis Place Penzance Cornwall TR182BD United Kingdom Tel: 01736 362 467 Fax: 01736 366 696 GREENLAKE LEISURE: Taps Tenon Recovery to Administer Assets ----------------------------------------------------------- Ian William Kings of Tenon Recovery was named administrator of Greenlake Leisure Ltd. (Company Number 05130213) on Nov. 8. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Headquartered in Peterlee, England, Greenlake Leisure Ltd. is engaged in selling caravans and managing caravan parks. GSM LOGISTICS: Joint Liquidators Take Over Operations ----------------------------------------------------- Carl Derek Faulds and James Richard Tickell of Portland Business & Financial Solutions Ltd. were appointed Joint Liquidators of GSM Logistics Limited on Nov. 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: GSM Logistics Limited 16 Langlands Place East Kilbride Glasgow Lanarkshire G75 0YF United Kingdom Tel: 01355 570 388 Fax: 01355 570 448 HILTON HOTELS: Files Request to Modify Partial Final Judgment ------------------------------------------------------------- Hilton Hotels Corp., a party defendant in the Partial Judgment entered in United States v. Greater Portland Convention Association, Inc., et al., Civil No. 70-310 on Nov. 29, 1971, has filed a request with the Antitrust Division of the United States Department of Justice to modify the Partial Final Judgment. The Partial Final Judgment settled the United States' complaint alleging violations of Section I of the Sherman Act, 15 U.S.C. � I, with respect to certain defendants: -- Greater Portland Convention Association, Inc., -- Hilton Hotels Corp., -- ITT Sheraton Corporation of America, and -- Cosmopolitan Investment, Inc. The Partial Judgment prohibits defendants and their subsidiaries, successors and assigns from, inter alia, (1) agreeing with any other hotel to give or promise to give preferential treatment for the purchase of hotel supplies to hotel suppliers, or (2) giving or promising to give preferential treatment for the purchase of hotel supplies to any hotel suppliers on the basis of payments, contributions, or dues paid by suppliers to any convention bureau. While the latter prohibition, contained in � V of the Partial Final Judgment, will remain unaffected by the proposed modification, Hilton's proposed modification will add this language to the former prohibition, found in � IV of the Partial Final Judgment. Provided, however, that nothing in this Section will be construed to prohibit any hotel defendant from: 1. Developing hotel supply purchasing programs for its owned, managed and franchised hotels; or 2. Participating in bona fide group purchasing organizations or programs notwithstanding the fact that such organizations or programs may include one or more other hotels. Hilton is seeking these modifications to ensure that � IV of the Partial Final Judgment would not be interpreted so as to prohibit the hotel defendants from engaging in these specified activities. Hilton understands that in the course of evaluating the request the Antitrust Division will also consider whether the Partial Final Judgment should be terminated in its entirety. Interested persons are invited to submit comments regarding both the proposed modifications and a potential termination of the Partial Final Judgment to: John R. Read Chief Litigation III Section Antitrust Division U.S. Department of Justice Liberty Place Building 325 Seventh Streeet, N.W. Suite 300 20530 Washington, D.C. United States Comments must be received by the Antitrust Division within thirty (30) days from the date of this publication. Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. In Europe, Hilton Hotels operates in the United Kingdom, Germany, Belgium, Denmark, Finland, Italy, The Netherlands, among others. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service's confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corp., in implementation of its new Probability- of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors. Additionally, Moody's held its Ba2 probability-of-default ratings and assigned its LGD4 loss-given-default ratings on these loans and bond debt obligations: Senior Notes with an average rate of 8.1% due 2007 - 2031; Chilean inflation indexed note effective rate 7.65% due 2009; 3.375% Contingently convertible senior notes due 2023; Minimum Leases Commitments; Term Loan A at adjustable rates due 2011; Term Loan B at adjustable rates due 2013; and Revolving loans at adjustable rates, due 2011. Moody's said these obligations have a 53% Projected Loss-Given Default. Moody's also held its (P)Ba2 probability-of-default ratings and assigned a LGD4 loss-given-default rating with a Projected Loss- Given Default to the Company's Senior unsecured debt shelf. I C REFURBISHMENTS: Appoints Alan Simon to Liquidate Assets ----------------------------------------------------------- Alan Simon of Langley Group LLP was appointed Liquidator of I C Refurbishments Limited on Nov. 9 for the creditors' voluntary winding-up proceeding. The company can be reached at: I C Refurbishments Limited Unit 34 Crayford Industrial Estate Swaisland Drive Crayford Dartford Kent DA1 4HS United Kingdom Tel: 01322 310 950 Fax: 01322 310 951 IMMEL PUBLISHING: Taps Kevin Goldfarb to Liquidate Assets --------------------------------------------------------- Kevin Goldfarb was appointed Liquidator of Immel Publishing Limited (formerly Innotronic Limited and Diplema Four Limited) on Nov. 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: Immel Publishing Limited 14 Dover Street City Of Westminster London W1S 4LW United Kingdom Tel: 020 7491 1799 Fax: 020 7493 5524 INTERFACE INC: Financial Recovery Cues Moody's to Lift Ratings -------------------------------------------------------------- Moody's Investors Service upgraded the long-term ratings of Interface, Inc., which had been on positive outlook since April 17, 2006. 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 at US$14.65 per share, resulting in net proceeds of around US$79 million on Nov. 10, 2006 and the company's intention to use the proceeds to repay outstanding debt. These are the rating actions: -- Upgraded the original US$150 million 7.3% guaranteed senior unsecured notes due 2008 to B1, LGD3, 48% from B2, LDG3, 49%; -- Upgraded the US$175 million 10.375% guaranteed senior unsecured notes due 2010 to B1, LGD3, 48% from B2, LDG3, 49%; -- Upgraded the US$135 million 9.5% guaranteed senior subordinated notes due 2014 to B3, LGD5, 88% from Caa1, LDG5, 89%; -- Upgraded the Corporate Family Rating to B1 from B2; -- Upgraded the Probability of Default Rating 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 delevering below adjusted debt to EBITDA of 3x 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 1.5x could result in downward pressure on the ratings. Cash or debt-financed acquisitions or the assumption of additional indebtedness could result in a downgrade. Interface Inc. -- http://www.interfacesustainability.com/-- is a manufacturer and marketer of floor coverings and fabrics headquartered in Atlanta, Georgia. The company has locations in North America, Europe, Australia and Thailand, among others. INTUWAVE LIMITED: Appoints Baker Tilly as Joint Administrators -------------------------------------------------------------- Graham Paul Bushby and Geoffrey Lambert Carton-Kelly of Baker Tilly were appointed joint administrators of Intuwave Ltd. (Company Number 03790048) on Nov. 13. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. Intuwave Ltd. can be reached at: Siena Court Broadway Maidenhead Berkshire SL6 1NJ United Kingdom Tel: 01628 509 022 Fax: 01628 509 122 JANE VALLERO: Appoints Liquidator from Kallis & Co. --------------------------------------------------- Kikis Kallis of Kallis & Co. was appointed Liquidator of Jane Vallero Design Ltd. on Nov. 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: Jane Vallero Design Ltd. 108 Swan Lane Barnet London N20 0PP United Kingdom Tel: 020 8343 9663 KRISPY KREME: Posts US$135.8MM Net Loss in Year Ended Jan. 2006 --------------------------------------------------------------- Krispy Kreme Doughnut, Inc. reported a US$135.8 million net loss on US$543.4 million of revenues for the fiscal year ended Jan. 31, 2006, compared with a US$198.3 million net loss on US$707.8 million of revenues for the same period in 2005. Both revenues from company owned stores and franchisee stores declined in fiscal 2006 compared with fiscal 2005, as did company sales to franchise stores. This was offset mainly by lower recorded direct operating expenses of US$474.6 million in fiscal 2006, compared with US$598.3 million in fiscal 2005. In addition, the company recognized lower impairment charges and lease termination costs of US$55.1 million in 2006 compared to US$161.8 million in 2005. At June 30, 2006, the company's balance sheet showed US$410.8 million in total assets, US$302.2 million in total liabilities, and US$108.7 million in total stockholders' equity. The company's balance sheet at Jan. 29, 2006 also showed US$147 million in total current assets available to pay US$153.9 million in total current liabilities. A full-text copy of the company's annual report is available for free at http://researcharchives.com/t/s?1485 About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. There are currently around 323 Krispy Kreme stores and 79 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. The company generates revenues from three distinct sources: company-owned stores, franchise fees and royalties from franchise stores, and a vertically integrated supply chain. Freedom Rings, LLC, company's franchisee in Eastern Pennsylvania, Delaware and Southern New Jersey, filed on Oct. 16, 2005 for Chapter 11 protection with the Delaware Bankruptcy Court (Bankr. D. Del. Case No. 05-14268). Following closure of its four remaining stores, the Bankruptcy Court confirmed Freedom Rings' plan of liquidation on April 20, 2006 and its operations have been substantially wound up. KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for restructuring on April 15, 2005, pursuant to the Companies' Creditors Arrangement Act with the Ontario Superior Court of Justice. Krispy Kreme Doughnut Corp. agreed to pay around US$9.3 million to two secured creditors to settle its obligations with respect to its guarantees pertaining to certain indebteness and related equipment agreements. In exchange, a newly formed subsidiary of Krispy Kreme Doughnut Corp. acquired substantially all of the operating assets of KremeKo, as authorized by the Ontario Court. Glazed Investments, LLC, company's franchisee in Colorado, Minnesota and Wisconsin, filed for Chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932). Subsequent to this filing, Glazed Investments sold its remaining 12 Krispy Kreme stores to Western Dough, Krispy Kreme's area developer for Nevada, Utah, Idaho, Wyoming and Montana, for appoximately US$10 million. This sale was facilitated by the Chapter 11 filing, by permitting the assets to be sold free and clear of all liens, claims and encumbrances. Under the plan of liquidation filed by Glazed Investments, it will be dissolved after distribution of the sale proceeds to creditors, and Krispy Kreme will not receive any payment on account of its ownership in Glazed Investments. While a substantial portion of Glazed Investments' debts were retired from the sale proceeds and liquidation of other assets, Krispy Kreme paid around US$1 million of its franchisee's debt which was guaranteed by it. LIZARD DEVELOPMENTS: Hires Liquidator from Ward & Co. ----------------------------------------------------- Lyn Marie Green of Ward & Co. was appointed Liquidator of Lizard Developments Limited on Nov. 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: Lizard Developments Limited 1 Park Street Shifnal Shropshire TF11 9BA United Kingdom Tel: 01952 400770 M S A CONSTRUCTION: Brings In Liquidator from Pattinsons -------------------------------------------------------- Ian Pattinson of Pattinsons was appointed Liquidator of M S A Construction Limited on Nov. 10 for the creditors' voluntary winding-up procedure. The company can be reached at: M S A Construction Limited 157 Sapcote Road Burbage Hinckley Leicestershire LE102AT United Kingdom Tel: 01455 440 022 Fax: 01455 440 033 PHELPS DODGE: Freeport Takeover Depends on Commodity Prices ----------------------------------------------------------- Analysts told Business News Americas that the wisdom of Freeport-McMoRan Copper & Gold's proposed takeover of Phelps Dodge will depend on future commodity prices. Victor Flores, an HSBC analyst, explained to BNamericas, "It all revolves around what the commodity prices do. Our view is that commodity prices will stay fairly robust but they WILL decline. Maybe they [Freeport] have insights that we don't." According to BNamericas, Mr. Flores was referring to Freeport's ability to manage its new debt structure. BNamericas relates that under the cash and stock transaction, Freeport will pay US$126.46 per Phelps Dodge share, representing a 33% premium over the latter's closing share price on Nov. 17. Freeport told BNamericas that it will take on debt to pay the US$18 billion cash portion, representing 70% of the total consideration of US$25.9 billion. Including the transaction, pro forma net debt is estimated at US$15 billion in 2006 versus estimated Ebitda of US$7.9 billion. "Freeport is betting on the cycle lasting a lot longer. I don't mean necessarily higher copper prices than the current but ones that are still well above the long-term levels that companies and analysts use on a planning basis," Nick Hatch, an analyst at Investec, commented to BNamericas. Richard Adkerson, chief executive officer of Freeport, told BNamericas that copper prices do not have to be as good as 2006 for the deal to make sense. BNamericas underscores that a Freeport said in a presentation that it saw pro forma annual average Ebitda for 2007-09 of just under US$4 billion at copper prices of US$1.50 per pound, almost US$6 billion at US$2 per pound and US$8 billion at US$2.5 per pound. According to the report, analysts agreed that the deal would provide Freeport with important diversification. Mr. Flores told BNamericas, "They potentially gain a lower risk rating for the company by putting the Indonesian asset within a larger portfolio." BNamericas emphasizes that Freeport's only mining operation is the world class, low-cost Grasberg copper mine in Indonesia. Meanwhile, Mr. Hatch is doubtful that another firm will compete with Freeport on Phelps Dodge, BNamericas relates. Mr. Hatch told BNamericas, "This one is substantially above Phelps' closing share price and there are relatively few companies that would want to pay that kind of money." However, Mr. Flores admitted to BNamericas that it is possible that firms would bid against Freeport, given this year's trend. "As we have seen already in several cases this year, a deal that starts off on one path ends up going down a very different path," Mr. Flores told BNamericas. The analysts agreed that the 2006 historical level of consolidation in the mining sector will likely drop off next year in response to probable lower metal prices and fewer opportunities, according to BNamericas. The Freeport-Phelps Dodge deal is yet to be approved by the two firm's shareholders. The deal will be closed at the end of the first quarter of next year, BNamericas states. About Freeport McMoRan Freeport-McMoran Copper & Gold Inc. -- through its majority- owned subsidiary, PT Freeport Indonesia -- is engaged in copper, gold and silver mining and production operations. The company owns around 90.64% of PT Freeport Indonesia, and the Government of Indonesia owns the remaining approximate 9.36%. The company's principal asset is the Grasberg minerals district. During the year ended Dec. 31, 2005, net additions and revisions to the aggregate proven and probable reserves of the Grasberg and other Block A ore bodies in the Grasberg minerals district totaled around 132 million metric tons of ore representing increases of 2.1 billion recoverable pounds of copper, 0.4 million recoverable ounces of gold and 12.1 million recoverable ounces of silver. About Phelps Dodge Phelps Dodge -- http://www.phelpsdodge.com/-- is among the world's largest producers of molybdenum, molybdenum-based chemicals, and manufacturer of wire and cable products. It maintains operations in Mexico, Puerto Rico, Thailand, China, Japan, the Netherlands, and the United Kingdom, among others. * * * On June 26, 2006, Moody's Investors Services has placed Phelps Dodge's Ba1 junior preferred shelf rating in CreditWatch for a possible downgrade. PNEU-TECH LIMITED: Ian. C. Brown Leads Liquidation Procedure ------------------------------------------------------------ Ian C. Brown of Parkin S. Booth & Co. was appointed Liquidator of Pneu-Tech Limited (formerly A V Jones Limited) on Nov. 14 for the creditors' voluntary winding-up procedure. The company can be reached at: Pneu-Tech Limited The Grange Plas Bennion Road Penycae Wrexham Clwyd LL141TP United Kingdom Tel: 01978 810 873 Fax: 01978 822 285 PRUDENTIAL ASSURANCE: Announces Final Implementation of Scheme -------------------------------------------------------------- The final implementation of the solvent scheme of arrangement made between The Prudential Assurance Co. Ltd. and its respective scheme creditors occurred on Oct. 31. The Scheme Manager, Whittington Insurance Services Ltd. confirmed that all scheme liabilities were settled or otherwise determined and all established liabilities were paid in full in accordance with the terms of the solvent scheme, pursuant to section 425 of the Companies Act 1985. The High Court of Justice in England and Wales sanctioned the solvent scheme on July 9, 2004. The Scheme Manager can be reached at: Whittington Insurance Services Ltd. c/o John Leppard 33 Creechurch Lane London EC3A 5EB United Kingdom Tel: +44 (0) 207 220 1851 Fax: +44 (0) 207 929 1315 E-mail: prupearlscheme@whittingtoninsurance.com or PricewaterhouseCoopers LLP E-mail: prupearlscheme@uk.pwc.com QUAY CONTACT: Hires Begbies Traynor to Administer Assets -------------------------------------------------------- Paul Stanley and Gary Lee of Begbies Traynor were appointed joint administrators of Quay Contact Ltd. (Company Number 05145743) 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. Headquartered in Cardiff, England Quay Contact Ltd. is engaged in call center activities. R DAVIES: Claims Registration Ends December 10 ---------------------------------------------- Creditors of R Davies Maintenance Limited have until Dec. 10 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Joint Liquidators Ian Michael Rose and Robert Michael Young at: Begbies Traynor The Old Barn Caverswall Park Caverswall Lane Stoke-on-Trent Staffordshire ST3 6HP United Kingdom The company can be reached at: R Davies Maintenance Limited 130 Manor Way Ruislip Middlesex HA4 8HR United Kingdom Tel: 01895 623 422 SEA CONTAINERS: Court Okays Sidley Austin as Bankruptcy Counsel --------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the District of Delaware to employ Sidley Austin LLP as their general reorganization and bankruptcy counsel, nunc pro tunc to Oct. 15, 2006. As reported in the Troubled Company Reporter on Nov. 16, 2006, Sidley Austin is expected to: (a) provide legal advice with respect to the Debtors' powers and duties as debtors-in-possession in the continued operation of their businesses; (b) take all necessary action on the Debtors' behalf to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf, negotiating any and all litigation in which the Debtors are involved, and objecting to claims filed against the Debtors' estates; (c) prepare, on the Debtors' behalf, all necessary motions, answers, orders, reports, and other legal papers in connection with the administration of the Debtors' estates; (d) attend meetings and negotiate with representatives of creditors and other parties-in-interest, attend court hearings, and advise the Debtors on the conduct of their Chapter 11 cases; (e) perform any and all other legal services for the Debtors in connection with their Chapter 11 cases and with the formulation and implementation of the Debtors' plan of reorganization; (f) advise and assist the Debtors regarding all aspects of the plan confirmation process, including, but not limited to, securing the approval of a disclosure statement, soliciting votes in support of plan confirmation, and securing confirmation of the plan; (g) provide legal advice and representation with respect to various obligations of the Debtors and their directors and officers; (h) provide legal advice and perform legal services with respect to matters involving the negotiation of the terms and the issuance of corporate securities, matters relating to corporate governance and interpretation, application or amendment of the Debtors' corporate documents, including their certificates or articles of incorporation, bylaws, material contracts, and matters involving the fiduciary duties of the Debtors and their officers and directors; (i) provide legal advice and legal services to directors and officers, including former directors and officers, of the Debtors with respect to the class action securities litigation; (j) provide legal advice and legal services with respect to litigation, tax and other general non-bankruptcy legal issues for the Debtors to the extent requested by the Debtors; and (k) render other services, as agreed upon by Sidley and the Debtors. 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). SEA CONTAINERS: Court Okays Kirkland & Ellis As Special Counsel --------------------------------------------------------------- Sea Containers, Ltd. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Kirkland & Ellis LLP as their special conflicts litigation counsel for litigation relating to GE SeaCO SRL, nunc pro tunc to Oct. 15, 2006. As reported in the Troubled Company Reporter on Nov. 17, 2006, Edwin S. Hetherington, vice president, general counsel and secretary of Sea Containers Ltd., explains that the Debtors want Kirkland to prosecute or defend litigation or contested matters involving GE Capital Corporation and some of its subsidiaries concerning GE SeaCo and other matters adverse to GE. Mr. Hetherington notes that the Debtors' general reorganization and bankruptcy counsel, Sidley Austin LLP, represents GE in matters wholly unrelated to the Debtors and their Chapter 11 cases. Because Sidley also represents the Debtors in connection with all operational and substantive aspects of the Chapter 11 proceedings, including with respect to issues raised by GE, the Debtors want Kirkland to serve as their special conflicts litigation counsel to the limited extent that underlying litigation or certain contested matters are commenced by GE or the Debtors during the pendency of the Chapter 11 proceedings. 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). SHAY FURNITURE: Creditors Confirm Liquidator's Appointment ---------------------------------------------------------- Creditors of Shay Furniture Limited confirmed on Nov. 14 the appointment of Jonathan Lord of Bridgestones as the company's Liquidator. The company can be reached at: Shay Furniture Limited Unit 9 King St. Trading Estate Middlewich Cheshire CW10 9EJ United Kingdom Tel: 01606 738558 SL PROMOTIONS: BDO Stoy Appointed as Joint Administrators --------------------------------------------------------- C. K. Rayment and M. H. Thompson of BDO Stoy Hayward LLP were appointed joint administrators of SL Promotions Ltd. (Company Number 04598937) on Nov. 6. 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. SL Promotions Ltd. can be reached at: Atlantic House Falkland Close Charter Avenue Industrial Estate Coventry West Midlands CV4 8AU United Kingdom Tel: 024 7646 1234 Fax: 024 7646 4433 STENOCHAIR LIMITED: Names Liquidators from BRI Business Recovery ---------------------------------------------------------------- Peter John Windatt and Gary Steven Pettit of BRI Business Recovery and Insolvency were appointed Joint Liquidators of Stenochair Limited on Nov. 15 for the creditors' voluntary winding-up procedure. Headquartered in Olney, England, Stenochair Limited -- http://www.stenochair.co.uk/-- manufactures office seating, reception furniture and table systems for over. The company's products include operator chairs, task chairs, executive chairs, soft furniture, among others. TRIPOS INC: Selling All of Unit's Assets to Vector Capital ---------------------------------------------------------- Tripos Inc. has entered into a definitive agreement to sell substantially all of the assets of its Discovery Informatics business to Vector Capital. The sale, expected to close in the first quarter of 2007, is an initial step in the liquidation of Tripos. Liquidating distributions, in an amount to be determined, are expected to begin around six months after the closing of this transaction. Tripos' preliminary estimate is that there would be between US$6 million to US$12 million available for distribution to common stockholders assuming completion of the sale of its Discovery Informatics business to Vector, sale of its Discovery Research business, completion of certain other transactions described below, and satisfaction of all liabilities at amounts currently estimated. "This transaction will allow the Discovery Informatics business to continue to serve its computational chemistry and enterprise research IT customers as a private company with greater access to growth capital," said Dr. John P. McAlister, president and CEO of Tripos. "Furthermore, it will enable the Discovery Informatics business to strengthen its core SYBYL� business and continue to develop innovative scientific software products and services to meet the evolving needs of the pharmaceutical and biotechnology industries." Tripos also reported that it is in discussions to sell its U.K.-based Discovery Research business and related assets. Tripos will make prompt public disclosure of any definitive agreements for the sale of part or all of its Discovery Research business. "In January 2006, we announced that Tripos had engaged investment bankers to assist the board in evaluating a range of strategic alternatives for the company, including mergers and acquisitions, becoming a private company, and separating its informatics and research businesses" Commenting on these announcements, Dr. McAlister added. "Since then, we have undertaken an intensive search for the best alternative for our stockholders, and have engaged in extensive and in some cases advanced negotiations with several parties, including strategic investors and financial investors in the United States, Asia and Europe. The board recommends that stockholders approve this transaction based upon its belief that accepting the offer from Vector and proceeding with the liquidation and dissolution of Tripos provides a greater certainty of value to our stockholders than the continued uncertainty of operating Tripos in its current form or under any other structure that we might reasonably put in place." Asset Sale and Proposed Liquidation Under the asset purchase agreement, Tripos will sell its Discovery Informatics business for around US$25.6 million in cash, subject to adjustment based upon net working capital at closing. Tripos will retain certain assets and substantially all the liabilities of the business, which must be disposed of or satisfied before any distribution to shareholders. Tripos' Board of Directors has approved the transaction and recommends that Tripos' stockholders approve the transaction at a special meeting of stockholders at a date to be determined. The transaction is subject to numerous customary terms and conditions, including approval by Tripos' stockholders and limited post-closing indemnification. Seven Hills Partners, LLC, acted as exclusive financial advisor to Tripos in this transaction. Tripos' preliminary estimate is that there would be between US$6 million and US$12 million available for distribution to common stockholders, assuming completion of the Vector transaction, sale of the Discovery Research business on the terms currently being negotiated, and sale of certain other corporate assets, such as the Missouri headquarters building, surplus U.K. investments and an investment in a private equity fund. A substantial portion of the proceeds from this transaction, in an amount that can only be estimated at this time, will be needed to pay debts, other liabilities and any corporate taxes that in a liquidation must be satisfied before stockholders can be paid. The exact timing and amount of any liquidating distributions cannot be predicted at this time. Under the agreement, Tripos is not able to make any distributions to its common stockholders for six months after closing. The amount and timing of liquidating distributions are subject to a number of uncertainties, some of which are not fully within Tripos' control, including Tripos' ability to consummate the sale of its Discovery Informatics and Discovery Research businesses at the prices and terms currently under negotiation; the price Tripos is able to obtain for certain corporate assets that are not part of the transactions under discussion; the terms upon which Tripos is able to settle its outstanding liabilities and other liabilities that will arise in a liquidation; the costs that Tripos will incur while it remains a public company that files reports with the Securities and Exchange Commission; and the duration and expense of the liquidation process. Tripos plans to file a proxy statement with the SEC containing more detailed information about the proposed asset sale to Vector and other elements of its plan for liquidation and dissolution, including additional information about estimated proceeds to stockholders. Following SEC review of the proxy statement, Tripos will schedule a special meeting of stockholders and distribute the proxy statement. It is currently anticipated that the special meeting will be held early in 2007. Tripos, Inc. -- http://www.tripos.com/-- (Nasdaq:TRPS) combines leading-edge technology and innovative science to deliver consistently superior chemistry-research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. The company has offices in the U.K., Germany and Australia. UIC INSURANCE: Filing of Scheme Claims Ends March 7 --------------------------------------------------- The High Court of Justice of England and Wales sanctioned the Scheme of Arrangement between UIC Insurance Company Ltd. and Scheme Creditors on Oct. 6, 2006. A copy of the Court order was delivered for registration to the Registrar of Companies in England and Wales on Nov. 6, making the Scheme effective on that date. Ipe Jacob & Richard White of Grant Thornton U.K. LLP became Joint Scheme Officers on the Effective Date. Scheme Documents Copies of the Scheme and the explanatory statement and other pertinent documents, can be accessed from http://www.uic-gt.com/ or on CD or in hard copy by request from: David Burns Chiltington International Limited Holland House 1-4 Bury Street London EC3A 5AW United Kingdom. Tel: 020 7621 6369 Fax: 020 7621 6344 E-mail: uic@chiltington.co.uk Scheme Creditors have until March 7, 2007, to complete and submit their Claim Forms, unless it is indicated on the Vote Registration and Proxy Form that the same value submitted for voting purposes be also submitted as a Scheme Claim. If the Scheme Officers do not receive the Scheme Creditor's claim form before the bar date, the latter may not receive payment for the claim -- except in relation to Scheme Claims that have been agreed by the Company and fallen due for payment on or before the Effective Date, which have been included on a Claim Form prepared by the Scheme Officers, but not returned by the Scheme Creditors and received by the Scheme Officers before the Bar Date. Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. ********* 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 * * *