/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/061219.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, December 19, 2006, Vol. 7, No. 251 Headlines A U S T R I A ADVISIONS LLC: Claims Registration Ends January 10, 2007 D.A.F. TRANSPORT: Property Manager Declares Insufficient Assets EDV-HANDEL: Claims Registration Period Ends December 27 MONTLEEY HANDEL: Property Manager Declares Insufficient Assets RB - BAU: Property Manager Declares Insufficient Assets F I N L A N D SANMINA-SCI: Delays 10-K Filing for Year Ended Sept. 30, 2006 SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative F R A N C E ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team EUROTUNNEL GROUP: Board Picks Three Banks to Finance Plan KB HOMES: Charging Up to US$285 Mln of Non-Cash Impairments SANMINA-SCI: Delays 10-K Filing for Year Ended Sept. 30, 2006 SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative G E O R G I A METROMEDIA INT'L: Names New Members to Board of Directors G E R M A N Y ADVANCED MICRO: Forecasts 20% Increase in Shipments for 2007 AGRITRANS GMBH: Claims Registration Ends December 22 ATMEL CORP: Plans to Sell UK & Germany Wafer Fabrication Plants ATMEL CORP: NASDAQ Conditionally Grants Continued Listing BAYERISCHE HYPO: Fitch Keeps Low-B Ratings on Bluestone Tranches EMMERICH HAUSTECHNIK: Claims Registration Ends December 22 FLEXSTONE GMBH: Claims Registration Ends December 22 FRISEURSALON HELGA: Claims Registration Ends December 22 IMMOMASSIV BAU: Claims Registration Ends December 22 INFIT FITNESS: Claims Registration Ends December 22 KLAUS BENTLAGE: Claims Registration Ends December 22 KUENNECKE SANITAR: Claims Registration Ends December 22 PROSIEBENSAT.1 MEDIA: Lavena Inks Deal to Acquire Majority Stake PROSIEBENSAT.1 MEDIA: Moody's Reviews Ratings on Stake Purchase PROVIDE-A 2006-1: Moody's Rates EUR17.4-Million Notes at (P)Ba2 RESE-GRUNDBESITZ: Claims Registration Ends December 22 SCHALUNGSBEDARF ERHARD: Claims Registration Ends December 22 SCHLUETER TRANSPORTE: Claims Registration Ends December 22 ZENTGRAFF-HEIZUNGSBAU: Claims Registration Ends December 22 I T A L Y POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group POPOLARE ITALIANA: Okays Merger with Popolare di Verona e Novara POPOLARE ITALIANA: Merger Deal Sees 1,350 Job Cuts at New Group K A Z A K H S T A N AK-ALTYN LLP: Creditors Must File Claims by Jan. 19, 2007 DECOLLO FASHION: Creditors' Claims Due Jan. 19, 2007 GURYEV TECHSNAB: Claims Filing Period Ends Jan. 16, 2007 KARNAK LLP: Claims Registration Ends Jan. 19, 2007 METALLIST LLP: Kostanai Court Starts Bankruptcy Procedure NURJAN LLP: Creditors' Claims Due Jan. 19, 2007 SELECTA INTERNATIONAL: Claims Filing Period Ends Jan. 19, 2007 STARSTROY LLP: Claims Registration Ends Jan. 19, 2007 STROY TORG-M: Creditors Must File Claims by Jan. 16, 2007 SULU MADINE: Proof of Claim Deadline Slated for Jan. 19, 2007 K Y R G Y Z S T A N SHAM-KPK LLC: Creditors' Meeting Scheduled for Dec. 22 L I T H U A N I A MAZEIKIU NAFTA: Fitch Keeps IDR at B+ & Assigns Positive Outlook L U X E M B O U R G GSC EUROPEAN: Moody's Assigns Low-B Ratings to Two Note Classes POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group M A L T A BANK OF VALLETTA: Fitch Affirms Individual Rating at C N E T H E R L A N D S ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team CLIENTLOGIC: Raises SITEL Stockholders' Price to US$4.25 a Share CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review HEXION SPECIALTY: ACC Completes Review of Orica Acquisition KONINKLIJKE AHOLD: In Talks with Equity Firms Over USF Unit Sale LANCELOT 2006: Fitch Assigns BB Rating to EUR12-Million Notes SMILE 2005: Fitch Affirms BB- Rating on EUR122.7-Million Notes VNU NV: Agrees to Sell Business Media Europe to 3i VNU NV: New CEO Spearheads Major Corporate Transformation Plan N O R W A Y OSLO REINSURANCE: Meetings of Scheme Creditors Set Feb. 12, 2007 R U S S I A IST CJSC: Court Names R. Shaymukhametov as Insolvency Manager AGRO-LAND CJSC: Court Names A. Ilyin as Insolvency Manager AGRO-SERVICE OJSC: Court Names A. Ivonin as Insolvency Manager AURORA CJSC: Court Starts Bankruptcy Supervision Procedure BIRSKIY PRODUCTION: Court Names M. Nigmatullin to Manage Assets BUILDER CJSC: Court Names V. Suvorova as Insolvency Manager CLOTHES OJSC: Court Names S. Ivanov as Insolvency Manager DZERZHINSK-NII-GAS: Bankruptcy Hearing Slated for March 27 INTERNATIONAL BANK: Fitch Affirms Issuer Default Rating at B- KAMYSHEVSKOYE CJSC: Bankruptcy Hearing Slated for March 14 METROMEDIA INT'L: Names New Members to Board of Directors NEFTE-MASH OJSC: Court Starts Bankruptcy Supervision Procedure NOVATEK OAO: Appoints New Members to Board of Directors POULTRY FARM: Chuvashiya Bankruptcy Hearing Slated for April 19 SALAVATSKIY DIARY: Court Names M. Mulyukov as Insolvency Manager SALAVATSKIY BUILDER: Court Names Z. Sattarova to Manage Assets SEVERSTAL OAO: Keeps Free Float at Current Level; Won't Increase SILVER LLC: Court Names V. Vinogorov as Insolvency Manager TUYMAZINSKIY MEAT-PACKING: Asset Sale Slated for December 27 S P A I N GENOVA HIPOTECARIO IX: Fitch Rates EUR10.7-Mln Notes at BB MADRID RMBS I: Fitch Assigns BB+ Rating to EUR21-Million Notes S W I T Z E R L A N D ALGRA-VERLAG JSC: Hofe Court Starts Bankruptcy Proceedings BUZRUN SPORT: Lucerne Court Closes Bankruptcy Proceedings COBU LLC: Lucerne Court Starts Bankruptcy Proceedings E. URBINATI: St. Gallen Court Starts Bankruptcy Proceedings EXPO AUTOSPRITZWERK: Sursee Court Starts Bankruptcy Proceedings KJL MANAGEMENT: Zug Court Closes Bankruptcy Proceedings MK MEDIA: Luzern-Stadt Court Starts Bankruptcy Proceedings NG HANDEL: Hofe Court Suspends Bankruptcy Proceedings NUSSBAUMER BAREN: Hofe Court Suspends Bankruptcy Proceedings VERPRO INDUSTRIESPRITZWERK: Court Starts Bankruptcy Proceedings U K R A I N E METIZ-DON LLC: Creditors' Claims Due Jan. 7, 2007 NEGO TRADE: Donetsk Court Starts Bankruptcy Supervision NUR LLC: Mykolaiv Court Starts Bankruptcy Supervision SPETZFTORMET LLC: Creditors Must File Claims by Jan. 7, 2007 UKRPODSHYPNYK-DNIPRO PRODUCTION: Bankruptcy Supervision Starts U N I T E D K I N G D O M ADVANCED MICRO: Forecasts 20% Increase in Shipments for 2007 ANTHRACITE EURO: Fitch Assigns BB Rating to EUR25-Mln Sr. Notes ARBENTIN IT: Names Roderick Julian Jones Liquidator ATMEL CORP: Plans to Sell UK & Germany Wafer Fabrication Plants ATMEL CORP: NASDAQ Conditionally Grants Continued Listing BISHOP & CAIN: Appoints David Wald to Liquidate Assets BLUESTONE SECURITIES: Fitch Affirms Two Tranches at BB BOWEY GROUP: Creditors Confirm Liquidators' Appointment BRIDAL SUITE: M. C. Hepworth Leads Liquidation Procedure BRITTONS OF DEVON: Names Stephen James Hobson as Administrator CLIENTLOGIC: Raises SITEL Stockholders' Price to US$4.25 a Share CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review CORDATUS CLO: S&P Assigns BB- Rating on EUR16-Mln Class E Notes D.P.I. - DYNAMITE: Appoints Ian Franses to Administer Assets DIRECT LABELS: Brings In Administrator from Pattinsons DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods EMI GROUP: S&P Removes Ratings from Watch Neg. on Bid Rejection EUROTUNNEL GROUP: Board Picks Three Banks to Finance Plan EVERON POWDER: Brings In Liquidator from Mayfields Insolvency FOILDEK ROOFINGS: Creditors Ratify Voluntary Liquidation G B TRANSPORT: Hires T. Papanicola to Liquidate Assets GLOBAL CROSSING: Finance Unit to Offer GBP52-Mln Sr. Sec. Notes GLOBAL CROSSING: Moody's Rates Proposed Debt Issue at (P)B3 GLOBAL CROSSING: S&P Assigns B- Rating on GBP52-Million Notes GLOBAL SILICON: Appoints Administrators from Geoffrey Martin GRANT INFORMATION: Taps Joint Administrators from Tenon Recovery GREAT NORTHERN: Gov't. Invites Bidders for East Coast Franchise HART LANE: Brings In Grant Thornton to Administer Assets HB CONSTRUCTION: Appoints Administrators from DTE Leonard KAMROK LIMITED: Brings In Kroll Ltd to Administer Assets KONINKLIJKE AHOLD: In Talks with Equity Firms Over USF Unit Sale LOGIC SYSTEMS: Creditors' Meeting Slated for December 22 MCCOLLIN SMITH: Calls In Liquidator from CRG Insolvency MILLS PLUMBING: Taps Liquidator from Wilkinson & Co. MOTION ENGINEERING: Appoints Robert Gibbons as Liquidator MUSIC CREATION: Appoints Clair Dwyer as Administrator OPTIMUM NATIONWIDE: Brings In Menzies as Joint Administrators OSLO REINSURANCE: Meetings of Scheme Creditors Set Feb. 12, 2007 PARADISE FENCING: Hires John C. Moran to Liquidate Assets PARTYGAMING PLC: Slashes 41% Jobs After U.S. Business Shutdown PERFECT PANES: Names Richard Rones Liquidator SCIENS CFO I: Fitch Gives BB+ Rating on EUR7.8-Mln Class E Notes SEA CONTAINERS: Gov't. Invites Bidders for GNER's Franchise SEVERSTAL OAO: Keeps Free Float at Current Level; Won't Increase STUDIO 1: Claims Filing Period Ends Feb. 28, 2007 TOTALLY MG: Brings In Liquidators from Jacksons Jolliffe Cork YEW TREE: Calls In Liquidators from Recovery hjs * Fried Frank Opens Offices in Hong Kong & Adds Nine Partners * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= ADVISIONS LLC: Claims Registration Ends January 10, 2007 -------------------------------------------------------- Creditors owed money by LLC Advisions (FN 236622z) have until Dec. 27 to file written proofs of claims to court-appointed property manager Josef Ebner at: Dr. Josef Ebner c/o Mag. Andrea Eisner Mahlerstrasse 7 1010 Vienna, Austria Tel: 512 29 94 Fax: 512 29 04 Email: rae.ebner.eisner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 10, 2007, to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No. 4 S 133/06w). Andrea Eisner represents Dr. Ebner in the bankruptcy proceedings. D.A.F. TRANSPORT: Property Manager Declares Insufficient Assets --------------------------------------------------------------- Dr. Wolfgang Pitzal, the court-appointed property manager for LLC D.A.F. Transport & Handel (FN 232852f), declared Oct. 25 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 13 (Bankr. Case No. 5 S 129/06i). Hannelore Pitzal represents Dr.Pitzal in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Wolfgang Pitzal c/o Dr. Hannelore Pitzal Paulanergasse 9 1040 Vienna, Austria Tel: 587 31 11 Fax: 587 87 50-50 E-mail: office@heller-pitzal.at EDV-HANDEL: Claims Registration Period Ends December 27 ------------------------------------------------------- Creditors owed money by LLC EDV-Handel Habliczek (FN 250627w) have until Dec. 27 to file written proofs of claims to court- appointed property manager Christof Stapf at: Dr. Christof Stapf c/o Mag. Michael Neuhauser Esslinggasse 9 1010 Vienna, Austria Tel: 536 50-0 Fax: 536 50-14 Email: officewien@aaa-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 10, 2007, to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No. 4 S 155/06f). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. MONTLEEY HANDEL: Property Manager Declares Insufficient Assets -------------------------------------------------------------- Dr. Karl Schirl, the court-appointed property manager for LLC Montleey Handel (FN 231702p), declared Oct. 25 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna ordered the shutdown of the Debtor's business on the same day. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 12 (Bankr. Case No. 45 S 70/06g). Markus Siebinger represents Dr. Schirl in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Karl Schirl c/o Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna, Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: dr.karl.schirl@der-rechtsanwalt.at markus.siebinger@der-rechtsanwalt.at RB - BAU: Property Manager Declares Insufficient Assets ------------------------------------------------------- Mag. Christian Ebmer, the court-appointed property manager for LLC RB - Bau- u. Montagebau (FN 106195w), declared Oct. 25 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Linz is yet to rule on the property manager's claim. Headquartered in Linz, Austria, the Debtor declared bankruptcy on Oct. 23 (Bankr. Case No. 12 S 90/06g). The property manager can be reached at: Mag. Christian Ebmer Schillerstrasse 12 4020 Linz, Austria Tel: 65 69 69 Fax: 65 69 69-60 E-mail: office@hep.co.at ============= F I N L A N D ============= SANMINA-SCI: Delays 10-K Filing for Year Ended Sept. 30, 2006 ------------------------------------------------------------- Sanmina-SCI Corp. will be unable to file its annual report on Form 10-K for the fiscal year ended Sept. 30, 2006, on a timely basis. As previously disclosed, the Board of Directors of Sanmina-SCI formed an independent special committee of the board to review certain matters concerning the company's stock option administration policies and practices dating back to Jan. 1, 1997, and the related accounting implications. The company's management has determined, and the audit committee of the company's Board of Directors concurred, that restatement of the company's historical financial statements will be necessary because the company will need to record additional stock-based compensation expenses as a result of the findings of the Special Committee. Sanmina-SCI is completing its preparation of, and its outside independent accounting firm is in the process of auditing the company's Form 10-K. The company intends to file its Form 10-K as soon as practicable, and in any event within the 15-day extension period afforded by SEC Rule 12b-25 under the Securities Exchange Act of 1934, as amended. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in the TCR-Europe on Oct. 20, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sanmina-SCI Corp.'s US$600 million senior unsecured term loan, which matures Jan. 31, 2008. In addition, this rating was placed on CreditWatch with negative implications. SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services left its 'BB-' corporate credit and other ratings on San Jose, Calif.-based Sanmina-SCI Corp. on CreditWatch with negative implications, where they were placed on Aug. 14, 2006. While Sanmina filed its 10-quarter for the period ending July 1, 2006, by the Dec. 14, 2006, deadline, the company has filed for a 15-day extension to file its 2006 10-K, now due Dec. 29, 2006. "Should the company be unable to file within that deadline, we will review the reaction of the bondholders and creditors under the October 2006 term loan to determine any rating impact," said Standard & Poor's credit analyst Lucy Patricola. The company's securitization programs and lenders under the company's revolving credit have granted waivers to file through Jan. 10, 2007, and possibly longer depending on any extension granted by the bondholders. The rating could be lowered to the 'CCC' category if extensions to file financial statements are not granted by the company's remaining bondholders or lenders, reflecting heightened concerns of debt acceleration. In the process of reviewing stock option grants, the company uncovered several other accounting irregularities. Upon receipt and review of the company's 10-K, Standard & Poor's will evaluate the impact of additional restatements, the company's compliance with Sarbannes-Oxley requirements relating to internal controls, and additional involvement of the SEC or other judicial authorities, and operational performance over the last two quarters to determine the final impact on the rating. =========== F R A N C E =========== ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team ---------------------------------------------------------------- Alcatel-Lucent revealed that Pascal Bantegnie would lead the Investor Relations team, responsible for communication towards the investment community, including institutional investors and retail shareholders. Pascal Bantegnie will report to Scott Ashby, Alcatel-Lucent's deputy CFO, with regional support in the Paris office from Maria Alcon for Europe and Asia, and in the Murray Hill office from John DeBono for North America. With six years experience in Investor Relations, Pascal was Vice President, Investor Relations of Alcatel prior to this appointment. Previously, he held various engineering positions in the space industry and was responsible for the space risks underwriting activity at the AGF insurance company. He holds an engineering degree in Aeronautics and a Master of Science in Space. About the Company Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel- Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. EUROTUNNEL GROUP: Board Picks Three Banks to Finance Plan --------------------------------------------------------- The Board of Directors of Eurotunnel Group approved the financing package brought forth by a consortium of bank lenders led by Goldman Sachs Group Inc. and Deutsche Bank on one hand, and Citigroup Inc. on the other. The board has studied the two financing offers, which provide for a complete financing of the proposed safeguard restructuring plan recently approved by Eurotunnel's creditors, suppliers and bondholders. The financing package will include: -- a long term loan of GBP1,500 million and EUR1.96 billion, equivalent to a total of GBP2.84 billion, in the form of a classic bank loan, repayable, by tranche, between 35 and 43 years. -- the underwriting of the Obligations Remboursable en Actions (ORAs) [convertible notes] in sterling and Euros, for holders of Tier 3 debt, for an amount of GBP965 million, allowing for the monetization of the ORAs. These two offers also take account of the future operational financing needs of the company and the possibility of an additional debt stream of GBP225 million for the redemption of ORAs. The two offers received, both in line with the company's business plan, were very competitive and very close. As a result, the Board has decided that: -- the GS/DB consortium will lead the financing of the safeguard plan; and -- at the request of the company, the GS/DB consortium will propose that Citigroup joins them to assure 30% of the financing. The new Eurotunnel debt, as it results from the proposed financing, is sustainable by the company through its operational performance and the reduction in annual financial charges. The financial charges on the new Senior debt should start at around GBP140 million per annum, repayments of the capital not becoming due until 2012. This level of financial charges should be compared to the GBP293 million of interest for 2006 and the estimated GBP320 million for 2007 (taking into account the forecast increase in European interest rates), which Eurotunnel would have had to pay on the old debt. As reported in the TCR-Europe on Nov. 28, creditors representing 72% of the financial establishment committee voted in favor of the company's proposed safeguard-restructuring plan. The committee holds 70% of the company's GBP6.2 billion debt. Terms of the Plan The principal elements of the proposals include: 1) the creation of a new company, Groupe Eurotunnel, which will launch an Exchange Tender Offer (ETO) to Eurotunnel's current shareholders. The shareholders will hold a minimum 13% of the equity in Groupe Eurotunnel; 2) Groupe Eurotunnel will subscribe to a new long-term loan of GBP2.840 billion (less than half of the current debt) from an international banking consortium; 3) Groupe Eurotunnel will issue GBP1.275 billion of convertible hybrid notes. The hybrid notes will be convertible over a maximum of three years and one month. Approximately 61.7% of the hybrids are redeemable by the company. 4) current Eurotunnel shareholders, who subscribe to the ETO, will hold a minimum of 13% of the equity in Groupe Eurotunnel. They can subscribe directly to the hybrid, up to a value of GBP60 million (EUR87.7 million) and will benefit from free warrants. The redemption of hybrid notes by the company would allow them to increase their share of the equity from 13% to 67%. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel obtained Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). KB HOMES: Charging Up to US$285 Mln of Non-Cash Impairments ----------------------------------------------------------- KB Home anticipates recording a non-cash charge between US$235 million to US$285 million for inventory-related impairments and land option contract abandonments in the fourth quarter of its fiscal year ended Nov. 30, 2006. The non-cash charge related to the abandonment of certain land option contracts is expected by the company to total approximately US$90 million in the fourth quarter. The process of assessing the recoverability of specific properties within its inventory has yet to be completed by the company. The company disclosed of that the conclusion to record the charge was due to the change in market dynamics in the homebuilding industry, which caused a decline in the fair value of certain inventory positions and changes in the company's strategy concerning certain projects that no longer meet investment return hurdle rates. The company's management reviewed the conclusion with its Audit and Compliance Committee. KB Home's inventory consists of homes, lots and improvements in production and land under development. Restatement of Financial Statements The company's subcommittee of the audit and compliance committee and its independent legal counsel conducting an investigation into its past stock option practices had concluded that the company used incorrect measurement dates for financial reporting purposes for annual stock option grants for the fiscal years 1999 to 2005. The company expects the incremental non-cash compensation expense arising from the errors will not likely exceed an aggregate of US$50 million and tax provision to increase. Total incremental non-cash compensation expense is estimated to be approximately US$41 million with approximately US$36 million attributable to periods covered by previously-issued financial statements and approximately US$5 million attributable to future periods. Further, the company expects that the total related tax impact associated with Section 162(m) of the Internal Revenue Code will consist of a balance sheet-related component and an income tax provision impact. While the company has not yet finalized the amount of the tax effects, it currently estimates that its balance sheet will be impacted by an increase of approximately US$60 million in liabilities with a corresponding decrease in stockholders' equity, and its income tax provision will increase by approximately US$15 million. The company's management, in consultation with its audit and compliance committee and after discussion with Ernst & Young LLP, determined that the company's previously issued financial statements and any related reports of its independent registered public accounting firm for the fiscal years ended Nov. 30, 2003, 2004 and 2005, and the interim financial statements included in its quarterly reports on Form 10-Q for the quarters ended Feb. 28, 2006, and May 31, 2006, should no longer be relied upon and will be restated. Headquartered in Los Angeles, California, KB Home (NYSE: KBH) -- http://www.kbhome.com/-- is a homebuilder with domestic operating divisions in some of the fastest-growing regions and states: West Coast-California; Southwest-Arizona, Nevada and New Mexico; Central-Colorado, Illinois, Indiana and Texas; and Southeast-Florida, Georgia, North Carolina and South Carolina. Kaufman & Broad S.A., the Company's publicly traded French subsidiary, is a homebuilding company in France. It also operates KB Home Mortgage Company, a full-service mortgage company for the convenience of its buyers. * * * As reported in the Troubled Company Reporter on Oct. 27, 2006, Standard & Poor's Ratings Services placed its BB+ corporate credit, BB+ senior unsecured, and BB- senior subordinated debt ratings on KB Home on CreditWatch with negative implications. The CreditWatch listings affect US$1.65 billion of senior notes and US$750 million of senior subordinated notes. As reported in the Troubled Company Reporter on Sept. 15, 2006, Fitch Ratings affirmed and revised the Rating Outlook to Stable from Positive for KB Home's Issuer Default Rating 'BB+', Senior unsecured debt and revolving credit facility 'BB+' and Senior subordinated debt 'BB-'. SANMINA-SCI: Delays 10-K Filing for Year Ended Sept. 30, 2006 ------------------------------------------------------------- Sanmina-SCI Corp. will be unable to file its annual report on Form 10-K for the fiscal year ended Sept. 30, 2006, on a timely basis. As previously disclosed, the Board of Directors of Sanmina-SCI formed an independent special committee of the board to review certain matters concerning the company's stock option administration policies and practices dating back to Jan. 1, 1997, and the related accounting implications. The company's management has determined, and the audit committee of the company's Board of Directors concurred, that restatement of the company's historical financial statements will be necessary because the company will need to record additional stock-based compensation expenses as a result of the findings of the Special Committee. Sanmina-SCI is completing its preparation of, and its outside independent accounting firm is in the process of auditing the company's Form 10-K. The company intends to file its Form 10-K as soon as practicable, and in any event within the 15-day extension period afforded by SEC Rule 12b-25 under the Securities Exchange Act of 1934, as amended. Headquartered in San Jose, California, Sanmina-SCI Corporation -- http://www.sanmina-sci.com/-- is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. In Europe, the company has operations in Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin America, it operates in Brazil and Mexico. * * * As reported in the TCR-Europe on Oct. 20, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sanmina-SCI Corp.'s US$600 million senior unsecured term loan, which matures Jan. 31, 2008. In addition, this rating was placed on CreditWatch with negative implications. SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services left its 'BB-' corporate credit and other ratings on San Jose, Calif.-based Sanmina-SCI Corp. on CreditWatch with negative implications, where they were placed on Aug. 14, 2006. While Sanmina filed its 10-quarter for the period ending July 1, 2006, by the Dec. 14, 2006, deadline, the company has filed for a 15-day extension to file its 2006 10-K, now due Dec. 29, 2006. "Should the company be unable to file within that deadline, we will review the reaction of the bondholders and creditors under the October 2006 term loan to determine any rating impact," said Standard & Poor's credit analyst Lucy Patricola. The company's securitization programs and lenders under the company's revolving credit have granted waivers to file through Jan. 10, 2007, and possibly longer depending on any extension granted by the bondholders. The rating could be lowered to the 'CCC' category if extensions to file financial statements are not granted by the company's remaining bondholders or lenders, reflecting heightened concerns of debt acceleration. In the process of reviewing stock option grants, the company uncovered several other accounting irregularities. Upon receipt and review of the company's 10-K, Standard & Poor's will evaluate the impact of additional restatements, the company's compliance with Sarbannes-Oxley requirements relating to internal controls, and additional involvement of the SEC or other judicial authorities, and operational performance over the last two quarters to determine the final impact on the rating. ============= G E O R G I A ============= METROMEDIA INT'L: Names New Members to Board of Directors --------------------------------------------------------- Metromedia International Group Inc. reveals that according to results certified by the independent inspectors of election, IVS Associates, Inc., its common stockholders have elected: -- John S. Chalsty, -- Clark A. Johnson, -- Stuart Subotnick, -- Alan K. Greene, -- Mark S. Hauf, -- I. Martin Pompadur and -- William F. Harley, III, while its preferred stockholders elected: -- Wayne F. Henderson and -- David Gale, to the group's Board of Directors at the Company's annual meeting of stockholders held on Dec. 15, 2006. About Metromedia Based in Charlotte, North Carolina, Metromedia International Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock) -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephone operator. * * * In October 2006, Metromedia said it is filing a Chapter 11 Plan in the U.S. after receiving a binding offer to acquire all of the Company's business interests in Georgia for a cash price of US$480 million from an investment group comprised of: -- Istithmar, an alternative investment house based in Dubai, United Arab Emirates; -- Salford Georgia, the Georgian office of Salford Capital Partners Inc., a private equity and investment management company which manages investments in the CIS and Central & Eastern Europe; and -- Emergent Telecom Ventures, a communications merchant bank focused on pursuing telecommunications opportunities in the Emerging Markets. Upon the approval of the plan, all of the preferred and common equity interests in the Company will be converted into the right to receive the cash remaining after payment of all allowed claims and the costs and expenses associated with the sale and the Wind-Up. Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. ============= G E R M A N Y ============= ADVANCED MICRO: Forecasts 20% Increase in Shipments for 2007 ------------------------------------------------------------ Advanced Micro Devices Inc. anticipates a 20% increase in shipments in 2007, Ian King of Bloomberg News reports. In a presentation to New York analysts, AMD chief financial officer Robert Rivet forecasted that the company's gross margin would increase 50% in 2007, instead of the 47% average in the previous four quarters. "They gave a very optimistic long-term view," commented John Lau, an analyst at Jefferies & Co. Mr. Lau noted that the company did not focus on the current quarter's price increases. Citing Mercury Research, Bloomberg relates that AMD's market share is up 17% from last year. The company's share of sales increased by 23.3% in the third quarter of 2006. The company's US$5.4 billion acquisition of graphics chip maker ATI Technologies Inc. in October will help win more market share from Intel Corp., AMD chief executive officer Hector Ruiz said. The company is benefiting from large PC makers diversifying their product lines to include AMD's microprocessors. AMD will release its 2006 fourth quarter financial results in January 2007. About AMD Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. -- http://www.amd.com/-- designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. Standard & Poor's removed the rating from CreditWatch negative where it had been placed on July 24, 2006, following the announced acquisition of unrated ATI Technologies Inc. The ratings outlook is negative. At the same time, the rating agency assigned its 'BB-' bank loan rating, one notch above the corporate credit rating, and a '1' recovery rating to the company's proposed US$2.5 billion senior secured term loan, to be used as partial funding of the acquisition. AGRITRANS GMBH: Claims Registration Ends December 22 ---------------------------------------------------- Creditors of AGRITRANS GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Christian Zschocke. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 16, 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 Konstanz Hall 102 First Floor Nebengebaude Gerichtsgasse 9 78462 Konstanz, 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 Konstanz opened bankruptcy proceedings against AGRITRANS GmbH on Nov. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: AGRITRANS GmbH Winkelstr. 35 78259 Muehlhausen-Ehingen, Germany The administrator can be contacted at: Christian Zschocke Enge Str. 7 78224 Singen, Germany ATMEL CORP: Plans to Sell UK & Germany Wafer Fabrication Plants --------------------------------------------------------------- Atmel Corp. reported strategic restructuring initiatives designed to enhance profitability, accelerate the company's growth and reduce costs. These initiatives include: -- a focus on the company's high-growth, high-margin proprietary product lines. To better align Atmel's resources with highest-growth opportunities, the company is redeploying resources to accelerate the design and development of products that target expanding markets and is halting development on lesser, unprofitable, non-core products. -- optimize Atmel's manufacturing operations. Atmel will seek to sell its wafer fabrication facilities in North Tyneside, United Kingdom, and Heilbronn, Germany. These actions are expected to increase manufacturing efficiencies by better utilizing remaining wafer fabrication facilities while reducing future capital expenditure requirements. -- the adoption of a fab-lite strategy. Through better utilization of its remaining wafer fabs and the expansion of its foundry relationships, Atmel will significantly reduce manufacturing costs and continue to design and develop innovative new products utilizing world-class manufacturing facilities. The company anticipates cost savings in the range of US$70 million to US$80 million in 2007 reaching an annual rate of US$80 million to US$95 million by 2008. Included in the cost savings is approximately US$55 million per year resulting from the expected sale of the wafer fabrication facilities. Through a combination of voluntary resignations, attrition and other actions, Atmel expects a reduction in its non- manufacturing workforce of approximately 300 employees, or 10%. The company anticipates headcount to be reduced by approximately 1,000 additional employees upon completion of the sales of the North Tyneside and Heilbronn wafer fabrication facilities. Atmel will continue to meet the production needs of its worldwide customer base during this transition through the use of internal capacity and existing foundry partners. In addition, Atmel anticipates entering into a transition sourcing agreement with the eventual buyers of the wafer fabrication facilities. "These initiatives follow a thorough analysis of the company's operations and strongest opportunities for growth," Atmel president and chief executive officer Steven Laub said. "While this decision was difficult given the company's many dedicated employees, these actions are essential to better position Atmel to compete and drive value for our shareholders. "Focusing on our core business competencies, expanding our foundry relationships, and the adoption of a fab-lite model are the right strategies for Atmel to better serve our customers, reduce manufacturing costs, and enhance shareholder value." As a result of the initiatives, the company estimates it will record one-time restructuring and impairment charges in excess of US$200 million in the fourth quarter of 2006 for fixed asset write-downs, severance, and other expenses associated with the restructuring. A significant portion of these non-recurring charges relate to the non-cash write-down of the North Tyneside manufacturing facility Atmel intends to sell. About Atmel Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory, and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. * * * Standard & Poor's Rating Services assigned its single-B long- term foreign issuer and long-term local issuer credit ratings to Atmel Corp. on Oct. 24, 2001, and said the outlook, at that time, was negative. ATMEL CORP: NASDAQ Conditionally Grants Continued Listing --------------------------------------------------------- Atmel Corp. disclosed that the NASDAQ Listing Qualifications Panel has granted the company's request for continued listing on the NASDAQ Stock Market subject to certain conditions. On Feb. 9, 2007, Atmel must file with the Securities and Exchange Commission its Forms 10-Q for its second quarter ended June 30, 2006, and third quarter ended Sept. 30, 2006, as well as any necessary restatements for prior financial periods. The company must also be able to demonstrate compliance with all other requirements for continued listing on the Nasdaq Stock Market. In granting the extension, the Panel has required that through Feb. 9, 2007, Atmel will notify the Panel of the occurrence of any significant events, including any event that may call into question Atmel's historical financial information or affect the company's ability to comply with any NASDAQ listing requirement or satisfy the Feb. 9, 2007, deadline. In addition, any submissions to the Panel, press releases, or public filings prepared by Atmel will be subject to review by the Panel, which may, at its discretion, request additional information before determining that Atmel has complied with the terms of the Panel's decision. The Audit Committee of the company's Board of Directors initiated an independent investigation regarding the timing of past stock option grants and other potentially related issues. The Audit Committee, with the assistance of independent legal and forensic accounting experts, has reached a preliminary determination that, in connection with the requirements of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees, the actual measurement dates for certain stock options differed from the recorded measurement dates for those stock options. Based on the Audit Committee's preliminary determination, the company expects that the difference in these measurement dates will result in material non-cash, stock-based compensation expenses. The company disclosed of the decision of the Audit Committee that prior financial statements should no longer be relied upon. The Audit Committee has not completed its work nor reached final conclusions and is continuing its investigation into the circumstances that gave rise to the differences. The Audit Committee is making every effort to complete its investigation, and the company will make every effort to file its restated financial statements as soon as practicable after the completion of the investigation. There can be no assurance that Atmel will remain listed on the NASDAQ Global Market unless and until the company fully satisfies the terms of the Panel's decision. Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory, and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. * * * Standard & Poor's Rating Services assigned its single-B long- term foreign issuer and long-term local issuer credit ratings to Atmel Corp. on Oct. 24, 2001, and said the outlook, at that time, was negative. BAYERISCHE HYPO: Fitch Keeps Low-B Ratings on Bluestone Tranches ---------------------------------------------------------------- Fitch Ratings affirmed 11 tranches of two of the Bluestone Securities Plc series of non-conforming residential mortgage backed securities transactions. The Bluestone program, established in December 2004 by Bayerische Hypo-und Vereinsbank AG, was created to purchase portfolios from third-party originators in the U.K. The first securitization, Bluestone 2004-1 consisted of mortgage loans predominantly originated by Amber Home Loans, with the remaining originated by Rooftop Mortgages. Analysis highlights that the Rooftop collateral was experiencing higher loss severities than the Amber collateral at November 2006. The number of loans that have exited the Rooftop portfolio is less than Amber, although the weighted average loss severity on the Rooftop repossessed cases is significantly higher at 15.87%, compared to 8.97% for Amber. The combined WALS on the total sold repossessions is 11.85%. Average loss severities remain well below loss severity assumptions for Bluestone 2004-1 for the lowest rated note category of BB. Delinquencies greater than three months appear to have stabilized in the last three quarters; the most recent quarter has seen a decrease to 20.7% from 21.1% of the outstanding portfolio balance. Such arrears compare with an average of 12.42% for similarly seasoned U.K. non-conforming RMBS transactions, as per Fitch's U.K. non-conforming index. The higher level of arrears is in line with Fitch's expectations given the credit quality of the portfolio. Weighted average frequency of foreclosure for each rating category was at the upper end of the WAFF range for U.K. non-conforming transactions, as reflected in high credit enhancement levels compared to many other non-conforming transactions. The switch to pro-rata paydown of the notes in September 2006 initially slowed the growth of CE. However, the high annualized principal payment rates have continued to have a positive impact on de-leveraging the deal and building CE levels. There is a condition for the pro rata amortization to cease if arrears greater than three months exceed 22.5% of the outstanding mortgage balance. Given such arrears are close to this trigger, Fitch will monitor arrears performance closely. Unlike the first transaction, which referenced two originators, all of the loans in the second securitisation Bluestone Securities Plc - Series 2005-01 were originated by Platform Funding Limited, a wholly owned subsidiary of Britannia Building Society. The performance of the portfolio backing the second deal is significantly better than that backing the first transaction, owing to the characteristics of the loans. This portfolio contains a proportion of prime and near-prime borrowers, according to Platform product definitions. Delinquencies greater than three months are much lower in this series, currently accounting for 6.29% of the outstanding portfolio. Sold repossessions account for 0.4%, with a cumulative loss on these repossessed cases of 0.18% of the initial balance. Credit enhancement has experienced healthy growth in the year since issue, owing to the sequential paydown and relatively high PPR. The overall portfolio has amortized approximately 35%. The rating actions are: Bluestone Securities Plc - Series 2004-1 -- Class Aa (ISIN XS0208448331) and Class Aa I/O affirmed at AAA; -- Class Az (ISIN XS0208450311) and Class Az I/O affirmed at AAA; -- Class B (ISIN XS0208452879) affirmed at A; -- Class C (ISIN XS0208453687) affirmed at BBB; and -- Class D (ISIN XS0208453760) affirmed at BB. Bluestone Securities Plc - Series 2005-01 -- Class A (ISIN XS0222339631) affirmed at AAA; -- Class B (ISIN XS0222339391) affirmed at A; -- Class C (ISIN XS0222338740) affirmed at BBB; and -- Class D (ISIN XS0222338153) affirmed at BB. EMMERICH HAUSTECHNIK: Claims Registration Ends December 22 ---------------------------------------------------------- Creditors of Emmerich Haustechnik GmbH & Co. KG have until Dec. 22 to register their claims with court-appointed provisional administrator Sandra Bitter. Creditors and other interested parties are encouraged to attend the meeting at 11:45 a.m. on Jan. 12, 2007, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Paderborn Meeting Room 230a 2nd Floor Bogen 2-4 33098 Paderborn, 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 Paderborn opened bankruptcy proceedings against Emmerich Haustechnik GmbH & Co. KG on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Emmerich Haustechnik GmbH & Co. KG Ring 9A 33034 Brakel-Gehrden, Germany Attn: Martin Wolff, Manager Ring 9 33034 Brakel-Gehrden, Germany The administrator can be contacted at: Sandra Bitter Liboriberg 21 33098 Paderborn, Germany FLEXSTONE GMBH: Claims Registration Ends December 22 ---------------------------------------------------- Creditors of Flexstone GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Juergen Spliedt. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on Jan. 24, 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 Potsdam Hall 301 3rd Floor Branch Linden Road 6 14467 Potsdam, 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 Potsdam opened bankruptcy proceedings against Flexstone GmbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Flexstone GmbH Mielestrasse 2 14542 Werder, Germany The administrator can be contacted at: Dr. Juergen Spliedt Uhlandstrasse 165/166 10719 Berlin, Germany FRISEURSALON HELGA: Claims Registration Ends December 22 -------------------------------------------------------- Creditors of Friseursalon Helga GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Norbert Heimann. Creditors and other interested parties are encouraged to attend the meeting at 9:16 a.m. on Jan. 22, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Friseursalon Helga GmbH on Nov. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Friseursalon Helga GmbH Attn: Rainer Golle, Manager Hauptstr. 44 51491 Overath, Germany The administrator can be contacted at: Dr. Norbert Heimann Spichernstr. 55 50672 Cologne, Germany IMMOMASSIV BAU: Claims Registration Ends December 22 ---------------------------------------------------- Creditors of Immomassiv Bau GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Albert Hirt. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 30, 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 Rottweil Room 0.05 Branch Office Koernerstr. 29 Rottweil, 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 Rottweil opened bankruptcy proceedings against Immomassiv Bau GmbH on Nov. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Immomassiv Bau GmbH Attn: Markus Guhl, Manager Schubertstr. 27 78727 Oberndorf, Germany The administrator can be contacted at: Albert Hirt Berner Field 74 78628 Rottweil, Germany Tel: 0741/1754050 INFIT FITNESS: Claims Registration Ends December 22 --------------------------------------------------- Creditors of Infit Fitness GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Wolfgang Hohenadl. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 23, 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 Augsburg Meeting Room 162 Law Courts Alten Einlass 1 86150 Augsburg, 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 Augsburg opened bankruptcy proceedings against Infit Fitness GmbH on Oct. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Infit Fitness GmbH Attn: Robert Gilg, Manager Wittelsbacherstr. 1 86830 Schwabmuenchen, Germany The administrator can be contacted at: Wolfgang Hohenadl Froelichstr. 14 86150 Augsburg, Germany KLAUS BENTLAGE: Claims Registration Ends December 22 ---------------------------------------------------- Creditors of Klaus Bentlage GmbH Modell- und Formenbau have until Dec. 22 to register their claims with court-appointed provisional administrator Norbert Westhoff. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 12, 2007, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Court Route 6 33602 Bielefeld, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bielefeld opened bankruptcy proceedings against Klaus Bentlage GmbH Modell- und Formenbau on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Klaus Bentlage GmbH Modell- und Formenbau Hoefeweg 80 33619 Bielefeld, Germany Attn: Michael Bentlage, Manager Schirmhof 1a 33739 Bielefeld, Germany The administrator can be contacted at: Dr. Norbert Westhoff Adenauerplatz 4 33602 Bielefeld, Germany KUENNECKE SANITAR: Claims Registration Ends December 22 ------------------------------------------------------- Creditors of Kuennecke Sanitar- und Heizungsbau GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Henrik Teiwes. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 11, 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 Holzminden Hall 14 Hauptgebaude Karlstrasse 15 37601 Holzminden, 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 Holzminden opened bankruptcy proceedings against Kuennecke Sanitar- und Heizungsbau GmbH on Nov. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Kuennecke Sanitar- und Heizungsbau GmbH Attn: Nicole Kuennecke, Manager Niederes Field 19 37697 Lauenforde, Germany The administrator can be contacted at: Henrik Teiwes Bahnhofstrasse 23 37603 Holzminden, Germany Tel: 05531/93710 Fax: 05531/937110 PROSIEBENSAT.1 MEDIA: Lavena Inks Deal to Acquire Majority Stake ---------------------------------------------------------------- Lavena Holding 4 GmbH, which is controlled by funds advised by Kohlberg Kravis Roberts & Co. and Permira, signed a share purchase agreement for the acquisition of German Media Partners L.P.'s majority stake in ProSiebenSat.1 Media AG, Germany's largest TV broadcasting group. Upon completion of the share purchase agreement, Lavena will acquire approximately 88% of the voting common shares and approximately 13% of the non-voting preference shares in ProSiebenSat.1 and will hold approximately 50.5% of the registered share capital. The parties have agreed on a price of EUR28.71 per common share and of EUR22.40 per preference share. The completion of the share purchase agreement is subject to antitrust and media regulatory clearances. Furthermore, Lavena intends to launch a voluntary public takeover offer to the shareholders of ProSiebenSat.1. The offer price per share will be equal to the weighted average share price during the last three months prior to the announcement of the takeover offer. The takeover offer will be conditional upon the completion of the share purchase agreement. Details of the intended offer will be published in an offer document upon approval of such offer document by the Federal Supervisory Agency on Financial Services. "We are very pleased to announce this mutually beneficial transaction with KKR/Permira. After reviewing all of the bids, we are convinced that the KKR/Permira offer is the most attractive for both the company and current shareholders. We are confident that, as the new majority owner of ProSiebenSat.1, KKR/Permira will provide the company with strategic benefits and ensure continued prosperous growth," said Haim Saban, Chairman and CEO of Saban Capital Group Inc., the lead investor in German Media Partners. "We are delighted to have the opportunity to develop, together with the management and staff of ProSiebenSat.1, over the course of the coming years a new European media champion," said Thomas Krenz, Managing Partner of Permira, about the transaction. Johannes Huth, the member of KKR responsible for the firm's European operations, stated: "The Company has a great potential for growth, not only with its core TV channels, but also an innovative range of new online and transaction products. We will support the company with our know-how and resources in order to allow it to live up to its potential and continue the success story of ProSiebenSat.1 in Germany on a European scale". On the basis of a significant equity commitment and a solid financing structure, the new shareholders will provide sufficient flexibility for investments in growth opportunities. Mr. Krenz said that after completion of all regulatory proceedings and the voluntary takeover offer, the new investors will consider a possible business combination with the broadcasting group SBS Broadcasting, which is majority-owned by KKR and Permira and has a strong presence in Belgium, the Netherlands and Luxembourg as well as in Scandinavia and Eastern Europe. Mr. Huth stressed, however, that "it is clear already that ProSiebenSat.1 will remain headquartered in Munich." "ProSiebenSat.1 is a fantastic company. Thanks to a great management team led by Guillaume de Posch, very talented employees, and the implementation of exceptional ideas over the past three years, ProSiebenSat.1 is the most successful turnaround in European broadcast TV in recent years. We are proud to have been behind this success story," added Adam Chesnoff, President and COO of Saban Capital Group. KKR and Permira were advised by Lehman Brothers as well as by Freshfields Bruckhaus Deringer and Simpson Thacher & Bartlett LLP (Legal) on the transaction. J.P. Morgan, Morgan Stanley, Weil Gotshal & Manges and Hogan & Hartson Raue were advisors to German Media Partners. About Permira Permira -- http://www.permira.com/-- is a leading international Private Equity specialist. As an independent business, Permira is owned and controlled by its partners. The firm's team of around 100 professionals, based in Frankfurt, London, Madrid, Milan, New York, Paris, Stockholm and Tokyo, advises the Permira Funds with a total committed capital of more than EUR21 billion. Since 1985, the Permira Funds have completed over 180 private equity transactions. During the last year, the Permira Funds have completed seven transactions with a combined transaction value of over EUR30 billion. About KKR Kohlberg Kravis Roberts & Co. -- http://www.kkr.com/-- is one of the world's oldest and most experienced private equity firms specializing in management buyouts. Founded in 1976, it has offices in New York, Menlo Park, London, Paris, Hong Kong and Tokyo. Throughout its history, KKR has brought a long-term investment approach to its portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Over the past 30 years, KKR has completed 146 transactions with an aggregate value of more than US$260 billion. About German Media Partners L.P. German Media Partners L.P. is comprised of Saban Capital Group Funds (26%), Bain Capital Partners Funds (18.6%), Hellman & Friedman Funds (18.6%), Thomas H. Lee Partners Funds (18.6%), Providence Equity Funds (11.2%), Quadrangle Funds (5.9%) and Alpine Funds (1.1%). German Media Partners indirectly owns 50.5% of the share capital and 88.0% of the voting rights of ProSiebenSat.1 Media AG. In total, German Media Partners owns 13.0% of the preference shares and 88% of the common voting shares of ProSiebenSat.1 Media AG through P7S1 Holding II S.a.r.l. About Saban Capital Group Saban Capital Group, Inc. is a private investment firm specializing in the media and entertainment industries. Based in Los Angeles, SCG was established in 2001 by Haim Saban, founder of global family entertainment company Saban Entertainment, a global television broadcasting, production, distribution, merchandising and music company that was sold to the Walt Disney Corp. in October 2001 in a US$5.2 billion transaction. The firm makes both controlling and minority investments in public and private companies and adds strategic value through its established relationships and industry experience. SCG is also invested in Bezeq, Israel's national telecommunication provider. In addition, SCG owns and operates a music company, Saban Music Group, which operates an independent music-publishing company. About ProsiebenSat.1 Headquartered in Munich, Germany, ProsiebenSat.1 Media AG -- http://en.ProsiebenSat1.com/-- broadcasts and produces television programs through four German language television channels as well as a range of ancillary activities. It was formed in 2000 with the merger of Germany's leading broadcastersProSieben Media AG and Sat.1. It is the largest and most successful television corporation in Germany with four stations -- Sat.1, ProSieben, kabel eins and N24. PROSIEBENSAT.1 MEDIA: Moody's Reviews Ratings on Stake Purchase --------------------------------------------------------------- Moody's Investors Service placed the Ba1 senior unsecured and corporate family ratings of ProsiebenSat.1 Media AG on review for possible downgrade following the recent announcement that Lavena Holding 4 GmbH, which is controlled by funds advised by Kohlberg Kravis Roberts and Permira, has signed a share purchase agreement for the acquisition of German Media Partners LP's majority stake in the Company for a consideration of approximately EUR3.1 billion. The acquisition, which is of 88% of the common stock and 13% of the preferred stock (equivalent to 50.5% of the total share capital), is subject to antitrust and media regulatory clearances. These ratings were placed on review for possible downgrade: * ProsiebenSat.1 Media AG -- the senior unsecured and corporate family ratings, both at Ba1 Moody's notes that Lavena has said it also intends to launch a voluntary public takeover offer to the shareholders of ProSiebenSat.1, which hold approximately 87% of the non-voting preference shares, and 12% of the voting common shares. The acquiring consortium has endorsed ProSiebenSat.1' existing strategy, and has indicated that in making the acquisition it is pursuing a strategic interest in the European television industry, and has indicated that on completion it would consider combining ProSiebenSat.1 with its majority owned SBS Broadcasting. Moody's said that the review for possible downgrade reflects the risk that successful completion of the acquisition by Permira and KKR and the potential combination with SBS could result in an increase in ProSiebenSat.1's direct or indirect financial leverage and a weakening of its currently strong financial risk profile. Niel Bisset, Senior Vice President, notes "that it is difficult at this stage to anticipate how the debt capital structure and financial profile is going to evolve given the uncertainties over how the ownership and corporate profile, as well as business strategy, is going to develop. Therefore a downgrade of more than one rating notch cannot be ruled out at this time." In that context Moody's rating review will also factor in ProSiebenSat.1's own currently relatively under-levered balance sheet at the Ba1 rating level, its future operational strategy, whether on a stand-alone basis or as part of a combination with SBS, and the financing implications associated with any possible future combination with SBS. Moody's will furthermore consider, in the context of such review, any revenue, programming and cost synergies, which such a combination is likely to generate. Moody's notes that ProSiebenSat1.'s Notes due 2009 contain a change of control provision which in certain circumstances give noteholders the right to put their Notes back to the Issuer. ProSiebenSat.1 Media AG is based in Munich, Germany. The company's main activity is the broadcasting and production of television programs through four German language television channels as well as a range of ancillary activities. PROVIDE-A 2006-1: Moody's Rates EUR17.4-Million Notes at (P)Ba2 --------------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to the Notes to be issued by Provide-A 2006-1 GmbH: -- EUR0.5-Million Class A+ Notes due 2049: (P)Aaa; -- EUR145.2-Million Class A Notes due 2049: (P)Aaa; -- EUR95.8-Million Class B Notes due 2049: (P)Aa2; -- EUR43.5-Million Class C Notes due 2049: (P)A1; -- EUR37.8-Million Class D Notes due 2049: (P)Baa1; and -- EUR17.4-Million Class E Notes due 2049: (P)Ba2. In addition, Moody's Investors Service has assigned this provisional rating to a Credit Default Swap between KfW and a third party in connection with the Notes issued by Provide-A 2006-1 GmbH: -- EUR2.54-Million Senior Credit Default Swap: (P)Aaa. The structure is based on the KfW-offered Provide programme. In this program, KfW provides credit protection on a specific reference portfolio of residential mortgage loans. KfW in turn hedges its exposure through a Senior Credit Default Swap and the issuance of credit linked certificates of indebtedness purchased by Provide-A 2006-1 GmbH. This is the first Provide-A transaction which features a German SPV while the Issuers of previous Provide-A transactions are domiciled in Ireland. In this transaction, Bayerische Hypo- und Vereinsbank (HVB) sells credit risk of 32,417 reference claims with a current volume of approximately EUR2.9 billion. The loans securitized via Provide-A 2006-1 GmbH have been originated by HVB in the course of its mortgage loan activity. The portfolio is static and will amortize sequentially, starting with the Class A+ Notes which rank pro-rata with the Senior Credit Default Swap. Realized losses cover losses of principal, uncapped accrued interest at the loans' contractual interest rate and external foreclosure costs. The first layer of protection for the notes against losses from the underlying portfolio is provided by synthetic excess spread of 12 bps p.a., which is available to cover losses in the respective period. 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. RESE-GRUNDBESITZ: Claims Registration Ends December 22 ------------------------------------------------------ Creditors of RESE-Grundbesitz AG have until Dec. 22 to register their claims with court-appointed provisional administrator Rainer Maus. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Jan. 23, 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 Wuppertal Meeting Room A234 2nd Floor Isle 2 42103 Wuppertal, 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 Wuppertal opened bankruptcy proceedings against RESE-Grundbesitz AG on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: RESE-Grundbesitz AG Attn: Patricia Staniforth, Manager Neuenhausplatz 76 40699 Erkrath, Germany The administrator can be contacted at: Dr. Rainer Maus Turmhof 15 42103 Wuppertal, Germany SCHALUNGSBEDARF ERHARD: Claims Registration Ends December 22 ------------------------------------------------------------ Creditors of Schalungsbedarf Erhard Hauptvogel GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Balph Buenning. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 2, 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 Verden (Aller) Hall 214 Main Building Johanniswall 8 27283 Verden (Aller), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Verden (Aller) opened bankruptcy proceedings against Schalungsbedarf Erhard Hauptvogel GmbH on Nov. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schalungsbedarf Erhard Hauptvogel GmbH Siemensstrasse 5 27711 Osterholz-Scharmbeck, Germany Attn: Peter Hauptvogel, Manager Kohlhof 10 27711 Osterholz-Scharmbeck, Germany The administrator can be contacted at: Balph Buenning Domshof 18-20 28195 Bremen, Germany Tel: 0421/3686-0 Fax: 0421/3686-100 SCHLUETER TRANSPORTE: Claims Registration Ends December 22 ---------------------------------------------------------- Creditors of Schlueter Transporte GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Daniel Bauch. Creditors and other interested parties are encouraged to attend the meeting at 8:55 a.m. on Jan. 12, 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 Landshut Meeting Room 9/I Insolvency Court Maximilianstrasse 22-24 Landshut, 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 Landshut opened bankruptcy proceedings against Schlueter Transporte GmbH on Oct. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Schlueter Transporte GmbH Papferding 44 85461 Bockhorn, Germany The administrator can be contacted at: Daniel Bauch Steinmetzstrasse 10 85435 Erding, Germany Tel: 08122/22960-83 Fax: 08122/22960-84 ZENTGRAFF-HEIZUNGSBAU: Claims Registration Ends December 22 ----------------------------------------------------------- Creditors of Zentgraff-Heizungsbau GmbH have until Dec. 22 to register their claims with court-appointed provisional administrator Christine Mansius. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Jan. 11, 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 Holzminden Hall 14 Hauptgebaude Karlstrasse 15 37601 Holzminden, 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 Holzminden opened bankruptcy proceedings against Zentgraff-Heizungsbau GmbH on Nov. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Zentgraff-Heizungsbau GmbH Attn: Rita Zentgraff, Manager Rottmuendetal 42 37691 Boffzen, Germany The administrator can be contacted at: Christine Mansius Kaiser-Wilhelm-Road 3 31061 Alfeld/Leine, Germany Tel: 05181/85370 Fax: 05181/853737 E-mail: Mansius@t-online.de ========= I T A L Y ========= POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana ------------------------------------------------------------- The Boards of Directors of Banco Popolare di Verona e Novara and Banca Popolare Italiana have approved the merger between the two companies, Reuters reports. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted a EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirm the agreement with due diligence. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The merged company will be called Banco Popolare and will concentrate on savings and loans in northern Italy, Reuters reports. The merger, the banks added, will raise BPI's productivity and overall income. The companies forecasted an 18.9% hike in operating profit in 2006-2010 and a 45% cost-to-income in 2010. The payout ratio will be around 50% in 2010. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group ---------------------------------------------------------------- The approved merger between Banca Popolare Italiana and Banco Popolare di Verona e Novara will lead to around 1,350 job cuts at the new group, AFX News reports citing BPVN CEO Fabio Innocenzi. Mr. Innocenzi revealed that 840 of the job cuts would be done through incentive departures while 510 through natural wastage. The Board of Directors of the companies have approved the merger, which would commence on July 1, 2007. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted an EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirmed with due diligence the agreement. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The companies expected revenue synergies to reach EUR146 million. The banks forecast synergies of EUR70 million in 2007, EUR270 million in 2008, EUR413 million in 2009 and EUR500 million in 2010, Reuters relates. Mr. Innocenzi said that the merged group could generate EUR215 million more in synergies in a "best case scenario" excluded in the plan. The companies' shareholders will met on March 10, 2007, to approve the merger to a new company, which will be called Banco Popolare. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. POPOLARE ITALIANA: Okays Merger with Popolare di Verona e Novara ---------------------------------------------------------------- The Boards of Directors of Banco Popolare di Verona e Novara and Banca Popolare Italiana have approved the merger between the two companies, Reuters reports. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted a EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirm the agreement with due diligence. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The merged company will be called Banco Popolare and will concentrate on savings and loans in northern Italy, Reuters reports. The merger, the banks added, will raise BPI's productivity and overall income. The companies forecasted an 18.9% hike in operating profit in 2006-2010 and a 45% cost-to-income in 2010. The payout ratio will be around 50% in 2010. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. POPOLARE ITALIANA: Merger Deal Sees 1,350 Job Cuts at New Group --------------------------------------------------------------- The approved merger between Banca Popolare Italiana and Banco Popolare di Verona e Novara will lead to around 1,350 job cuts at the new group, AFX News reports citing BPVN CEO Fabio Innocenzi. Mr. Innocenzi revealed that 840 of the job cuts would be done through incentive departures while 510 through natural wastage. The Board of Directors of the companies have approved the merger, which would commence on July 1, 2007. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted an EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirmed with due diligence the agreement. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The companies expected revenue synergies to reach EUR146 million. The banks forecast synergies of EUR70 million in 2007, EUR270 million in 2008, EUR413 million in 2009 and EUR500 million in 2010, Reuters relates. Mr. Innocenzi said that the merged group could generate EUR215 million more in synergies in a "best case scenario" excluded in the plan. The companies' shareholders will met on March 10, 2007, to approve the merger to a new company, which will be called Banco Popolare. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. =================== K A Z A K H S T A N =================== AK-ALTYN LLP: Creditors Must File Claims by Jan. 19, 2007 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared LLP Ak-Altyn insolvent. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Ak-Altyn Al-Farabi Str. 25 Jetysai South Kazakhstan Region Kazakhstan DECOLLO FASHION: Creditors' Claims Due Jan. 19, 2007 ---------------------------------------------------- LLP Decollo Fashion has declared insolvency. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Decollo Fashion Office 304 Baizakov Str. 194 Almaty, Kazakhstan Tel: 8 (3272) 59-94-17 GURYEV TECHSNAB: Claims Filing Period Ends Jan. 16, 2007 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Guryev Techsnab insolvent. Creditors have until Jan. 16, 2007, to submit written proofs of claim to: LLP Guryev Techsnab Floor 3 Abai Str. 10a Atyrau Atyrau Region KARNAK LLP: Claims Registration Ends Jan. 19, 2007 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Karnak insolvent. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Karnak Lobody Str. 20 Karaganda Karaganda Region Kazakhstan METALLIST LLP: Kostanai Court Starts Bankruptcy Procedure --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region commenced bankruptcy proceedings against LLP Trade House Metallist on Nov. 15. NURJAN LLP: Creditors' Claims Due Jan. 19, 2007 ----------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared LLP Nurjan insolvent. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Nurjan Al-Farabi Str. 25 Jetysai South Kazakhstan Region Kazakhstan SELECTA INTERNATIONAL: Claims Filing Period Ends Jan. 19, 2007 -------------------------------------------------------------- LLP Selecta International has declared insolvency. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Selecta International Gogol Str. 155-32 Almaty, Kazakhstan STARSTROY LLP: Claims Registration Ends Jan. 19, 2007 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region declared LLP Construction Company Starstroy insolvent. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Starstroy Ilyaev Str. 24 Shymkent South Kazakhstan Region Kazakhstan STROY TORG-M: Creditors Must File Claims by Jan. 16, 2007 --------------------------------------------------------- LLP Construction Company Stroy Torg-M gas declares about its insolvent. Creditors have until Jan. 16, 2007, to submit written proofs of claim to: LLP Stroy Torg-M Amangeldy Str. 34-1 Shortandy Shortandynsky District Akmola Region Kazakhstan SULU MADINE: Proof of Claim Deadline Slated for Jan. 19, 2007 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Sulu Madine insolvent. Creditors have until Jan. 19, 2007, to submit written proofs of claim to: LLP Sulu Madine Lobody Str. 20 Karaganda Karaganda Region Kazakhstan =================== K Y R G Y Z S T A N =================== SHAM-KPK LLC: Creditors' Meeting Scheduled for Dec. 22 ------------------------------------------------------ Creditors of LLC Publishing House Sham-KPK will convene at 11:00 a.m. on Dec. 22 at: Floor 3 Building of Polygraphic Centre Suvanberdiev Str. 102 Bishkek, Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Publishing House Sham-KPK (Case No. ED-122/06 mbs2) insolvent on March 1. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The Temporary Insolvency Manager is: Mr. Toktogul Subankulov Tel: (+996 312) 47-02-22 (0-502) 82-95-66 ================= L I T H U A N I A ================= MAZEIKIU NAFTA: Fitch Keeps IDR at B+ & Assigns Positive Outlook ---------------------------------------------------------------- Fitch Ratings affirmed Lithuanian oil refining company Mazeikiu Nafta AB's Issuer Default rating at B+ and removed it from Rating Watch Positive. A Positive Outlook is assigned. MN's Short-term rating is affirmed at B. The rating action follows MN's ownership change as a result of Polish oil refining and marketing company PKN Orlen S.A.'s acquisition of the company. PKN has taken operational control over MN after the acquisition of a 53.7% stake in MN from Yukos International U.K. B.V. for US$1.49 billion and a 30.66% stake from the Lithuanian government for US$852 million. The Positive Outlook reflects the potential benefits for MN from operating as part of the PKN group, which has a stronger business and financial profile. PKN as a new owner of MN supports the Lithuanian company's capital expenditure program of around US$1 billion, which should transform MN into a modern refinery with integrated petrochemicals facilities. Upgrade potential depends on MN's projected cash flow development, which is to a large degree subject to the timing of the resumption of Russian crude oil pipeline delivery to MN and the restoration of MN's refinery to full capacity in fourth quarter of 2007 after the fire in October 2006. Fitch also expects that after the ownership change, MN will be able to purchase crude oil on more favorable terms without the current level of cash deposits. This should improve the company's financial flexibility and liquidity. Fitch may upgrade MN when the company is more fully integrated into PKN. There have been two significant negative developments in MN since PKN announced the acquisition in May 2006. Following the crude pipeline supply suspension from Russia due to a leakage in the Druzhba pipeline in July, MN is now purchasing Russian crude on a seaborne basis, mostly from the Primorsk terminal. This results in additional transportation costs and lost revenues from its pipeline and the Butinge terminal. This significantly reduces MN's cash flows until the pipeline supply is resumed by Russia, which may occur in H107. Fitch estimates this will reduce MN's EBITDA by at least US$100 million per year. In addition, as a result of the MN refinery fire in October 2006, which damaged a vacuum distillation unit, MN will operate at around 50% of its capacity until the unit is refurbished in fourth quarter of 2007. This incident will also have a significant negative effect on MN's cash flows given that only a part of its lost profits is expected to be covered via insurance claims. Fitch notes that PKN has a track record in refinery modernization and in operating and expanding the petrochemicals business. These should mitigate the risks related to MN's ambitious capital expenditure program, including the construction of petrochemicals facilities. =================== L U X E M B O U R G =================== GSC EUROPEAN: Moody's Assigns Low-B Ratings to Two Note Classes --------------------------------------------------------------- Moody's Investors Service assigned credit ratings to the notes issued by GSC European CDO I-R S.A., a Luxembourg special purpose company. The ratings are: -- EUR37-Million Class A1 Floating Rate Notes due 2022: Aaa; -- EUR140-Million Class A2A Floating Rate Notes due 2022: Aaa; -- EUR35-Million Class A2B Floating Rate Notes due 2022: Aa1; -- EUR25-Million Class A3 Revolving Floating Rate Notes due 2022: Aaa; -- EUR16.8-Million Class B Floating Rate Notes due 2022: Aa2; -- EUR18,4-Million Class C1 Floating Rate Deferrable Notes due 2022: A2; -- EUR10-Million Class C2 Zero Coupon Accreting Notes due 2022: A2; -- EUR20.3-Million Class D Floating Rate Deferrable Notes due 2022: Baa3; -- EUR12.5-Million Class E Floating Rate Deferrable Notes due 2022: Ba3; -- EUR7-Million Class W Combination Notes due 2022: Baa1; -- EUR4-Million Class Z Combination Notes due 2022: B2; -- EUR10-Million Class C2 Customised Rated Notes due 2022: A2; and -- EUR35-Million Class Subordinated Notes have been issued issued but are not rated by Moody's. The ratings of the Notes address the expected loss posed to investors by the legal final maturity. The ratings on the Class Z Combination Notes and C2 Customized Rated Notes address the repayment of the Rated Balance, whether from interest or principal proceeds, by the legal final maturity of the transaction while the rating on the Class W Combination Notes addresses the repayment of the Rated Balance and the Rated Coupon of 0.25% by that same legal final maturity, whether from interest or principal proceeds. This transaction is a high yield collateralized loan obligation related to an EUR336 million portfolio of mostly European senior and mezzanine loans (with a predominance of senior secured loans). GSCP (NJ), L.P, dynamically manages this portfolio. More than 90% of this portfolio was acquired at closing through a Forward Sale Agreement between GSC European CDO I, which is being called, and GSC European CDO I-R, and the remaining will be acquired during the 6 month ramp-up period in compliance with portfolio guidelines (which include, among other tests, a diversity score test, a weighted average rating factor test and a weighted average spread test). Thereafter, the portfolio of loans will be actively managed and the investment adviser will have the option, on behalf of the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana ------------------------------------------------------------- The Boards of Directors of Banco Popolare di Verona e Novara and Banca Popolare Italiana have approved the merger between the two companies, Reuters reports. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted a EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirm the agreement with due diligence. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The merged company will be called Banco Popolare and will concentrate on savings and loans in northern Italy, Reuters reports. The merger, the banks added, will raise BPI's productivity and overall income. The companies forecasted an 18.9% hike in operating profit in 2006-2010 and a 45% cost-to-income in 2010. The payout ratio will be around 50% in 2010. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group ---------------------------------------------------------------- The approved merger between Banca Popolare Italiana and Banco Popolare di Verona e Novara will lead to around 1,350 job cuts at the new group, AFX News reports citing BPVN CEO Fabio Innocenzi. Mr. Innocenzi revealed that 840 of the job cuts would be done through incentive departures while 510 through natural wastage. The Board of Directors of the companies have approved the merger, which would commence on July 1, 2007. As reported in the TCR-Europe on Oct. 17, the Board of Directors of BPI accepted an EUR8.2-billion takeover offer from larger rival BPVN. BPI and BPVN will form a holding company that will launch a share swap to stakeholders of the groups: -- 0.43 share for every BPI share, and -- a share for every BPVN share. Aside from the share swap, BPI would distribute an extraordinary dividend of EUR2 per share, for a total cash of EUR1.5 billion, to existing shareholders. The share-and-cash offer values BPI at EUR12 per share, based on BPVN's share price of EUR22.81 on Oct. 13. BPI shareholders have yet to confirmed with due diligence the agreement. According to BPI, the merger will generate annual pretax synergies of EUR500 million starting 2010, but integration costs will reach an overall EUR300 million before tax. The merged group, BPI added, will have a market capitalization of EUR15.5 billion, 2,183 branches and more than 2.4 million clients. The companies expected revenue synergies to reach EUR146 million. The banks forecast synergies of EUR70 million in 2007, EUR270 million in 2008, EUR413 million in 2009 and EUR500 million in 2010, Reuters relates. Mr. Innocenzi said that the merged group could generate EUR215 million more in synergies in a "best case scenario" excluded in the plan. The companies' shareholders will met on March 10, 2007, to approve the merger to a new company, which will be called Banco Popolare. About Banca Popolare Italiana Headquartered in Lodi, Italy, Banca Popolare Italiana -- http://www.bancapopolareitaliana.it/-- attracts deposits and offers commercial banking services. The Bank offers securities brokerage, asset management, mortgage loans, insurance, lease financing and treasury services and manages mutual funds. Through a subsidiary, Banca Popolare Italiana offers merchant banking services and medium- and long-term lending. About Banco Popolare di Verona Headquartered in Verona, Italy, Banco Popolare di Verona e Novara (BPVN) -- http://www.bpv.it/-- offers private banking, investment banking and asset management services, as well as other services in the tax and real estate sectors. The Company's banking network comprises over 1,170 branches, which are spread throughout the Italian regions of the Veneto, Emilia- Romagna, Piedmont and Lombardy, and internationally in London, Luxembourg, Hong Kong and Shanghai. * * * As reported in the TCR-Europe on Oct. 19, Moody's Investors Service placed on review for possible downgrade the A2 long-term and Prime-1 short-term senior debt and bank deposit ratings of Banco Popolare di Verona e Novara, as well as its C+ financial strength rating, following the announcement that BPVN's proposal to merge with Banca Popolare Italiana has been approved by BPI's board of directors. At the same time, Moody's placed on review for possible upgrade BPI's Baa2 long-term and Prime-2 short-term bank deposit and debt ratings and its D financial strength rating, as well as the Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term lending and investment banking subsidiary. Ratings placed on review for possible downgrade: Banco Popolare di Verona e Novara: * long-term debt and deposits at A2 * short-term deposit and debt ratings at Prime-1 * commercial paper rating at Prime-1 * subordinated debt at A3; junior subordinated debt at A3 * Tier 3 debt at Baa1 Banco Popolare di Verona e Novara, London: * short-term deposit and debt ratings at P-1 Ratings placed on review for possible upgrade: Banca Popolare Italiana: * Long-term debt and deposit ratings at Baa2 * Short-term debt and deposit ratings at Prime-2 * Financial Strength Rating at D * subordinated debt rating at Baa3 * junior subordinated debt at Ba1 * Tier III debt at Ba2 Banca Popolare di Lodi Investor Trust III: * non-cumulative guaranteed Trust Preferred Securities at Ba2 Efibanca: * Long-term deposit rating at Baa3 * Short-Term deposit rating at Prime-3 * Financial Strength Rating at D * backed long-term debt at Baa2 * backed subordinated debt at Baa3 As reported in the TCR-Europe on Oct. 18, Fitch Ratings placed Banco Popolare di Verona e Novara's A+ Issuer Default rating and B Individual rating on Rating Watch Negative. Its other ratings are affirmed at Short-term F1 and Support 3. At the same time, the agency placed Banca Popolare Italiana's BBB IDR, F3 Short-term and C Individual ratings on Rating Watch Positive. Its Support rating is affirmed at 3. The rating action follows the announcement by BPI's board of directors that it has accepted a merger offer by BPVN. Fitch will resolve the Rating Watches on completion of the merger, expected for March 2007. ========= M A L T A ========= BANK OF VALLETTA: Fitch Affirms Individual Rating at C ------------------------------------------------------ Fitch Ratings affirmed Bank of Valletta's ratings at Issuer Default A- with Stable Outlook, Short-term F2, Individual C, and Support 2. The ratings reflect BoV's position as the largest bank in Malta, improving profitability, sound capitalization and the progress achieved so far in reducing its large stock of impaired loans. However, impaired loans are still high in relation to gross lending and equity, and impairment allowances are low by international standards. Concentration in the loan book is also high. Upward potential on the Issuer Default and Individual ratings is currently constrained by the bank's limited size, the small size of the domestic economy and high loan book concentrations. However possible upward potential on the bank's Individual rating may arise, in the longer term, from a substantial reduction in impaired lending and concentrations, while preserving sound profitability and good capital ratios. Deterioration of the bank's asset quality or severe problems affecting the domestic economy, on which the bank is closely dependent, could put pressure on the ratings. However, given the bank's systemic importance, downside pressure on the Issuer Default rating would be limited to one notch. BoV's profitability has been improving in the past three years. During the financial year to September 2006, BoV's performance was satisfactory, with a generalized increase in all sources of income and improved cost efficiency. The small size of the Maltese economy causes some borrower concentration in BoV's loan book, increasing its risk profile. Fitch considers that reducing concentration levels might be challenging in light of BoV's role as the largest bank in Malta and its role in serving the domestic economy. The bank's asset quality indicators have improved steadily since 2002. The share of impaired loans, largely a legacy of the past, progressively declined to account for a more acceptable, albeit still high, 7.4% of total gross loans at end-September 2006. This was the result of increased management efforts to reduce these loans. Total loan impairment allowances, although slowly increasing, were still low at 45% of impaired loans, although this is partly mitigated by the high level of collateral and historically low loan losses. BoV is adequately capitalized in relation to its risks; however, the bank's capital is limited. BoV's main shareholders are the Maltese government and Italian commercial bank Capitalia, with stakes of 25.2% and 14.6%, respectively. The bank's employees own 5.5% and the balance is publicly traded. In 2004, the Maltese government and Capitalia announced their intention to divest their remaining stakes in BoV. In October 2006, the former decided against selling its stake in BoV. ===================== N E T H E R L A N D S ===================== ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team ---------------------------------------------------------------- Alcatel-Lucent revealed that Pascal Bantegnie would lead the Investor Relations team, responsible for communication towards the investment community, including institutional investors and retail shareholders. Pascal Bantegnie will report to Scott Ashby, Alcatel-Lucent's deputy CFO, with regional support in the Paris office from Maria Alcon for Europe and Asia, and in the Murray Hill office from John DeBono for North America. With six years experience in Investor Relations, Pascal was Vice President, Investor Relations of Alcatel prior to this appointment. Previously, he held various engineering positions in the space industry and was responsible for the space risks underwriting activity at the AGF insurance company. He holds an engineering degree in Aeronautics and a Master of Science in Space. About the Company Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel- Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. CLIENTLOGIC: Raises SITEL Stockholders' Price to US$4.25 a Share ---------------------------------------------------------------- SITEL Corp. and ClientLogic Corp. had entered into an amendment to a previous Agreement and Plan of Merger among SITEL, ClientLogic and Stagecoach Acquisition Corp., dated Oct. 12, 2006. Under the terms of the amendment, SITEL stockholders will receive US$4.25 in cash for each outstanding share of common stock of SITEL held, which represents an increase of US$0.20 per share in cash from the price of US$4.05 per share in cash previously agreed with ClientLogic. The Board of Directors of SITEL has unanimously approved the amendment to the Merger Agreement. The transaction is expected to be completed in the first quarter of 2007 and remains subject to customary closing conditions, including the approval of SITEL's stockholders. On Dec. 6, prior to SITEL entering into the amendment with ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and Jefferies Capital Partners IV LLC revised their previously announced proposal to acquire all of the outstanding shares of common stock of SITEL to lower the proposed price of US$4.50 to US$4.25 per share in cash. The amendment with ClientLogic required SITEL to terminate the existing discussions with Gores/Calgary/Jefferies although it continues to permit SITEL to respond to additional proposals from third parties in the event the Board of Directors of SITEL determines in good faith after considering advice from its outside advisors that failure to do so would be inconsistent with its fiduciary obligations. In additon, the amendment increases the expense reimbursement portion of the amount payable by SITEL upon termination of the Merger Agreement in circumstances involving an alternative acquisition proposal by US$1 million. In connection with the proposed merger with ClientLogic, SITEL has set Jan. 12, 2007, as the date of its 2006 Annual Meeting of Stockholders at which SITEL will seek, among other things, stockholder approval of the Merger Agreement, as amended, and the transactions contemplated thereby. Holders of record of SITEL common stock as of 5:00 p.m., New York time, on Dec. 5, 2006, will be entitled to vote at the meeting. The meeting will be held at: Marriott Regency Hotel 10220 Regency Circle Omaha, Nebraska The meeting will begin at 1:00 p.m., local time, on Jan. 12. The definitive proxy statement and related materials will be mailed on or about Dec. 13, 2006, to stockholders of record on the record date. The US$4.25 to be paid in cash in the merger for each SITEL share represents an approximate 37.5% premium over the volume- weighted average closing price of SITEL common stock on the New York Stock Exchange for the thirty days prior to the public announcement of the execution and delivery of the Merger Agreement. About SITEL Corp. SITEL -- http://www.sitel.com/-- provides outsourced customer support services. SITEL designs and improves customer contact models across its clients' customer acquisition, retention, and development cycles. SITEL has over 42,000 employees in 101 global contact centers located in 26 countries. About ClientLogic ClientLogic Corp. -- http://www.clientlogic.com/-- is a business process outsourcing provider in the customer care and back office processing industries. ClientLogic's footprint spans 49 facilities in 13 countries: Austria, Canada, France, Germany, India, Ireland, Mexico, Morocco, Netherlands, Panama, Philippines, United Kingdom and the United States. CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review ---------------------------------------------------------------- Moody's Investors Service placed ClientLogic Corporation's B3 corporate family rating on review for possible upgrade after the company's disclosure of its revised plan to merge with Sitel Corp. and Sitel's recent return to filing timely financial statements with the U.S. Securities and Exchange Commission. As part of its review, Moody's will focus on resolution of the company's merger plan, including the combined firm's prospective capitalization, client contract performance, expense reduction, and free cash flow. Under the terms of the proposed merger, a newly formed subsidiary of ClientLogic will merge with SITEL and pay US$4.25 per share in cash for all of the outstanding common stock of SITEL. The transaction, which ClientLogic expects to be completed in the first quarter of 2007, is subject to customary closing conditions, including shareholder approval and regulatory clearances. In connection with the proposed merger, SITEL has set Jan. 12, 2007 as the date of its 2006 Annual Meeting of Stockholders at which SITEL will seek, among other things, stockholder approval of the merger. Headquartered in Nashville, Tennessee, ClientLogic Corporation provides outsourced call center services worldwide including Austria, France, Germany, Ireland, Netherlands, and the United Kingdom. HEXION SPECIALTY: ACC Completes Review of Orica Acquisition ----------------------------------------------------------- Hexion Specialty Chemicals has been notified that the Australian Competition and Consumer Commission or ACCC has completed its review of the company's intent to acquire the resin and adhesives business of Orica Limited. The ACCC does not propose to intervene in the transaction and has not attached any conditions to its decision. Based upon the successful completion of this regulatory review, Hexion anticipates closing of the transaction will occur in mid- January 2007. Hexion had reached an agreement with Orica Limited to buy its adhesives and resins business, which manufactures formaldehyde and formaldehyde-based binding resins in Australia and New Zealand used primarily in the forest products industry. Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://hexionchem.com/-- manufactures and markets resins, inks, coating and adhesive resins, formaldehyde, oil field products and other specialty and industrial chemicals worldwide. At Sept. 30, 2006, the company has 103 production and manufacturing facilities, of which 38 are located in the U.S. The company's European headquarters is located at Rotterdam in The Netherlands. * * * As reported in the Troubled Company Reporter on Oct. 23, 2006, Standard & Poor's Ratings Services lowered its corporate credit rating on Hexion Specialty Chemicals Inc. to 'B' from 'B+'. The outlook is stable. S&P also lowered the rating on the existing $225 million first-lien senior secured revolving credit facility to 'B' from 'B+'. As reported in the TCR-Europe on Oct. 19, Moody's Investors Service assigned B3 ratings to the new guaranteed senior secured second lien notes due 2014 of Hexion Specialty Chemicals Inc. The company expects to issue roughly US$825 million of notes split (55/45) between fixed and floating rate notes. KONINKLIJKE AHOLD: In Talks with Equity Firms Over USF Unit Sale ---------------------------------------------------------------- Koninklijke Ahold N.V. is holding talks with Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. over the sale of its U.S. Foodservice unit through a leveraged buyout, Henny Sender writes for The Wall Street Journal. Blackstone Group and Texas Pacific Group are also considering a bid for USF, people privy to the matter told WSJ. CDR and KKR's offers would value USF at more than US$5 billion, WSJ suggests. As reported in the TCR-Europe on Nov. 8, Koninklijke Ahold N.V. disclosed of plans and financial targets resulting from its Retail Review. The plans include the divestment of USF, among others. According to Ahold, the plans are designed to accelerate identical sales growth, improve profit returns and strengthen the company's foundation for future expansion, creating additional value for its shareholders. The company said it would retain ownership of the Stop & Shop and Giant supermarket units. Anders Moberg, Chief Executive Officer, told WSJ, "We have the knowledge, the management and I can't see anybody else doing a better job." Private-equity firms, however, also have experience with food distribution companies. CDR acquired Alliant Foodservice from Kraft Foods in 1995 and sold it to U.S. Foodservice in 2001 and earned nearly six times its investment. Ahold had been subject of takeover and merger speculations, with private equity firms hovering around the company, WSJ relays. Ahold denied it was for sale, stressing that it was large enough to survive. According to WSJ, the company's market value is around US$16.7 billion and around 74% of its sales are in the U.S. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. LANCELOT 2006: Fitch Assigns BB Rating to EUR12-Million Notes ------------------------------------------------------------- Fitch Ratings assigned final ratings to Lancelot 2006 B.V.'s upcoming issue of EUR600 million floating-rate notes due 2073: -- EUR528 million Class A (ISIN XS0275569225): AAA; -- EUR21 million Class B (ISIN XS0275579703): AA; -- EUR19.5 million Class C (ISIN XS0275581279): A; -- EUR19.5 million Class D (ISIN XS0275581949): BBB; and -- EUR12 million Class E (ISIN XS0275582590): BB. This is a static cash flow securitization of a pool of commercial mortgage loans granted by F. Van Lanschot Bankiers N.V. to 159 private individuals, small to medium-sized entities and special-purpose vehicles established by SMEs or individuals in the Netherlands as of the latest pool-cut. This is the first commercial mortgage-backed loan cash securitization launched by VLB. The mortgage loan receivables are secured by more than 700 commercial real estate properties in the Netherlands and are sold at the outset by the originator to the issuer. The purpose of the loans is to finance the operations or investments of SMEs, leverage the borrowers' investment property, or achieve favorable tax treatment of the borrowers' estates. The transaction benefits from structural protection via a dynamic required reserve balance to trap excess margin for unresolved defaulted loans and a principal deficiency ledger to redirect interest proceeds to amortize senior principal once foreclosure proceedings on a loan have been finalized. The final ratings are based on the quality of the collateral, available credit enhancement, the financial structure of the transaction, the underwriting and servicing of the collateral and the transaction's legal structure. The final ratings address timely payment of interest and the repayment of principal by legal final maturity on the Class A to D notes and the ultimate payment of interest and the repayment of principal by legal final maturity on the Class E notes in accordance with the terms and conditions of the documentation. The issuer is a private company with limited liability incorporated under the laws of the Netherlands. SMILE 2005: Fitch Affirms BB- Rating on EUR122.7-Million Notes -------------------------------------------------------------- Fitch Ratings affirmed Smile 2005 Synthetic B.V. due 2012 notes: -- EUR2.87 billion Class A1 notes affirmed at AAA; -- EUR2 billion Class A2 notes affirmed at AAA; -- EUR122.7 million Class B notes affirmed at AA+; -- EUR90.9 million Class C notes affirmed at AA-; -- EUR90.9 million Class D notes affirmed at BBB+; and -- EUR122.7 million Class E notes affirmed at BB-. The affirmation reflects the transaction's stable performance to date and sufficient credit enhancement. As of the latest report the cumulative defaults were EUR47.07 million of defaulted assets, representing approximately only 0.17% of the original EUR6.75-billion portfolio balance. Furthermore, the transaction benefits from excess spread trapping mechanism at 25 bps per annum of the outstanding portfolio, which serves as first-loss protection. Credit enhancement has slightly increased due to unscheduled payments, which are used to pay down the notes sequentially, while scheduled payments are pro-rata. The transaction constitutes a synthetic securitisation of loans to small and medium-sized enterprises in the Netherlands, originated by ABN AMRO Bank N.V. The ratings of all the above notes address ultimate repayment of principal at maturity and timely payment of interest when due. VNU NV: Agrees to Sell Business Media Europe to 3i -------------------------------------------------- VNU Group B.V. agreed in principle to sell substantially all of its Business Media Europe (BME) group to 3i, a private-equity and venture capital company in Europe. The agreement is subject to compliance with all applicable employee consultations and regulatory clearances. On Oct. 2, VNU said it planned to explore strategic alternatives for BME, including a possible sale of the business. The strategic review did not include VNU Business Media U.S.A., or VNU's joint venture with Jaarbeurs - VNU Exhibitions Europe B.V. - with activities in the Netherlands and China. The proposed sale to 3i would include BME's operations in the United Kingdom, the Netherlands, Spain, Italy, Germany and Belgium. The proposed sale of BME's business in France is still under discussion. About VNU Business Media Europe VNU Business Media Europe -- http://www.vnubme.com/-- delivers valuable news and information through more than 70 print titles, including such premier brands as Intermediair, Computing, Computable, Accountancy Age and Management Team. It serves business professionals in the U.K., Germany, France, Italy, the Netherlands, Belgium and Spain through seven wholly owned operating companies. BME also offers a range of associated e-media and Web sites, including VNUnet, an online news and information network for the IT industry that reaches more than 10 million unique visitors each month. BME continues to expand its offerings by leveraging its unique mix of cross-media platforms to meet the communications needs of its clients. About 3i 3i is a world leader in private equity and venture capital. The firm focuses on Buyouts, Growth Capital, Venture Capital and Infrastructure and invests across Europe, the United States and Asia. The firm's competitive advantage comes from its international network and the strength and breadth of its relationships in business. About VNU Headquartered in Haarlem, Netherlands, VNU N.V. -- http://www.vnu.com/-- operates publishing businesses and offers marketing and media information. The Company publishes and distributes telephone directories, children's books and periodicals, and business information periodicals. VNU also offers television and Internet usage data and advertising expenditure analysis. * * * As reported in the TCR-Europe on July 20, Moody's Investors Service downgraded the Corporate Family Rating of VNU NV to B2 from B1 and its senior unsecured debt ratings to Caa1 from B1. This concludes Moody's review of VNU's ratings, which was last continued on May 26. Rating downgraded to B2 from B1: -- Corporate Family Rating Ratings downgraded to Caa1 from B1: -- floating rate Euro MT Notes due 2012; -- 6.75% Euro MT Notes due 2012; -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT Notes due 2010; -- 5.625% GBP MT Notes due 2010/17; -- 5.5% Eurobonds due 2008; -- 6.75% Eurobonds due 2008; -- 6.625% Eurobonds due 2007; -- Euro MTN program; and -- Nielsen Media Research Inc.'s 7.6% Notes due 2009 guaranteed by VNU. In a TCR-Europe report on July 19, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its 'B' short-term corporate credit rating. All ratings have been removed from CreditWatch, where they were placed with negative implications on Oct. 12, 2005. S&P said the outlook is negative. VNU NV: New CEO Spearheads Major Corporate Transformation Plan -------------------------------------------------------------- VNU Group B.V. disclosed of a new organizational and leadership structure that is intended to transform VNU into a more successful and efficient enterprise. The plan, spearheaded by VNU's newly elected CEO David L. Calhoun, will allow the company to focus more completely on the needs of its clients worldwide and invest strategically for the future. Implementation of the plan will begin on Jan. 1, 2007. "The changes we are announcing are an important first step in our efforts to make this extremely strong global franchise even more competitive, and to improve the ways we serve our clients worldwide," noted Mr. Calhoun. "This strategy -- and supporting structure -- give us the flexibility and speed we need to respond to evolving market imperatives and access more of the resources we need to continue investing aggressively for the future. It accelerates our transformation into a single, truly integrated operating company that is focused completely on providing our clients with the products and expertise they need to succeed." Susan Whiting Promoted to EVP Under the new strategy, VNU will combine product innovation, research and development, and marketing into a single organization under the leadership of Susan D. Whiting, who will serve as executive vice president of VNU. In this expanded role, Ms. Whiting will work across the entire company to identify new product opportunities and fast-track their development and commercialization. She will report directly to Mr. Calhoun and provide counsel to VNU's Supervisory Board. Ms. Whiting, presently president and CEO of Nielsen Media Research, will become chairman of that group and will continue to be responsible for its media and entertainment businesses. Unified Client Servicing VNU also will begin a transition to a unified, global client service organization that will allow it to present "one face" to its clients worldwide, simplifying client interactions and ensuring that VNU maintains a constant focus on the needs of clients in every aspect of its business. The goal is to call on all relevant capabilities and expertise across VNU to offer a full spectrum of integrated solutions to clients, while seeking new ways to add value. Initial steps to unify client service will be guided by the presidents of ACNielsen's five geographic regions, who will report directly to Mr. Calhoun: * John Lewis, currently president and CEO of ACNielsen U.S., will take on an expanded role as head of ACNielsen North America. Pat Gardiner, president of ACNielsen Canada, will report to Mr. Lewis. * Pat Dodd is named president of ACNielsen Europe, succeeding Frank Martell, ACNielsen's chief operating officer, who previously ran the European business in addition to his global responsibilities and who has elected to leave the company. * Arturo Garc�a Castro, president of ACNielsen Latin America; Nonoy Niles, president of ACNielsen Asia Pacific; and Lennart Bengtsson, president of ACNielsen Eastern Europe, Middle East and Africa, will continue in their expanded roles. With these changes, VNU is phasing out its group organizational structure, including Marketing Information, led by Steve Schmidt, president and CEO of the group, who has announced his intention to leave the company. Global Business Services Taking advantage of its size and scale as one of the world's premier information services companies, VNU will centralize operational and IT functions in a new Global Business Services organization. The company is conducting an external search for a world-class executive to lead this organization. In the interim, the Global Business Services team will report to Mr. Calhoun. Business Media As previously disclosed, VNU Business Media, which includes major titles such as The Hollywood Reporter, Adweek and Billboard, has been reorganized into six market-focused groups - Marketing, Retail, Film, Music, Marketing Services & Travel, and Residential & Commercial Building Design, under the leadership of Robert Krakoff. Mr. Krakoff will continue to report to Mr. Calhoun. Reinvesting in Growth In addition to announcing a new operating model for the company, VNU said it plans to achieve a permanent reduction in its cost base of 10 percent over the course of 2007. Savings will enable the company to improve profitability and invest in new products. The majority of cost- savings will be achieved through business-process simplification, organizational de-layering, and real estate and IT consolidation. The company expects a reduction in force of as many as 4,000 positions over the course of 2007, with most of the job cuts coming from non- client-facing activities, Mr. Calhoun said. The company plans to reinvest in major growth initiatives, including: -- Nielsen Media Research's Anytime Anywhere Media Measurement (A2/M2) plan to cover the transition to digital media and the growth in personal video devices. -- NielsenConnect, the "follow the consumer" service that will combine VNU's consumer, retail and media information, including the newly formed Nielsen In-Store business, to provide new insights into marketing effectiveness. NielsenConnect is headed by Jon Mandel, who reports to Mr. Calhoun. -- ACNielsen Loyalty, a new service to help retailers manage and enhance their frequent-shopper data to provide more targeted offerings to consumers. -- enhanced media integration, which will combine marketing and media information and editorial content in new digital platforms for Business Media's advertisers and audiences. Mr. Calhoun noted, "We operate our businesses in markets that are becoming more complex, and more fragmented, and more technology-driven than ever. The changes we are making will help us integrate the media and consumer information that our clients need to succeed. We have outstanding capabilities in our businesses and the right leadership in place, and I am confident that we will move forward to set new standards of innovation and success." About VNU Headquartered in Haarlem, Netherlands, VNU N.V. -- http://www.vnu.com/-- operates publishing businesses and offers marketing and media information. The Company publishes and distributes telephone directories, children's books and periodicals, and business information periodicals. VNU also offers television and Internet usage data and advertising expenditure analysis. * * * As reported in the TCR-Europe on July 20, Moody's Investors Service downgraded the Corporate Family Rating of VNU NV to B2 from B1 and its senior unsecured debt ratings to Caa1 from B1. This concludes Moody's review of VNU's ratings, which was last continued on May 26. Rating downgraded to B2 from B1: -- Corporate Family Rating Ratings downgraded to Caa1 from B1: -- floating rate Euro MT Notes due 2012; -- 6.75% Euro MT Notes due 2012; -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT Notes due 2010; -- 5.625% GBP MT Notes due 2010/17; -- 5.5% Eurobonds due 2008; -- 6.75% Eurobonds due 2008; -- 6.625% Eurobonds due 2007; -- Euro MTN program; and -- Nielsen Media Research Inc.'s 7.6% Notes due 2009 guaranteed by VNU. In a TCR-Europe report on July 19, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its 'B' short-term corporate credit rating. All ratings have been removed from CreditWatch, where they were placed with negative implications on Oct. 12, 2005. S&P said the outlook is negative. =========== N O R W A Y =========== OSLO REINSURANCE: Meetings of Scheme Creditors Set Feb. 12, 2007 ---------------------------------------------------------------- The High Court of Justice ordered that meetings of Scheme Creditors of Oslo Reinsurance Company (U.K.) Limited and Oslo Reinsurance Company ASA be convened at 11:00 a.m. (U.K. time) on Feb. 12, 2007, at: KPMG LLP 1-2 Dorset Rise London EC4Y 8EN United Kingdom to consider whether to approve or reject a scheme of arrangement to be proposed to be made between the Scheme Companies and Scheme Creditors. The Court ordered Oslo Re ASA to convene a single meeting of its Scheme Creditors to vote on its Scheme. The Court also ordered Oslo Re U.K. to convene two meetings of its Scheme Creditors: -- a meeting of Scheme Creditors in relation to their claim other than Incurred But Not Reported (IBNR) claims; and -- a meeting of Scheme Creditors in relation to their IBNR claims. Scheme creditors who have claims falling into both of these classes will be able to vote in each meeting. The Scheme includes business written under the former names of the Scheme Companies and business that gas been transferred into the Scheme Companies. The business included in the Scheme was written by various companies within the Storebrand, Polaris and Norgen groups. Copies of the Scheme Document, Forms of Proxy and Voting Forms are available at http://www.oslore.no/ The Scheme Managers can be reached at: Jan C. H. Endresen and Bjorn Morten Skordal Oslo Reinsurance Company ASA P.O. Box 1753 Vika. N-0122 Oslo, Norway Tel: +47 22 31 59 86 +47 22 31 28 91 Fax: +47 22 31 29 74 +47 22 31 29 00 E-mail: scheme.inquiries@oslore.no =========== R U S S I A =========== IST CJSC: Court Names R. Shaymukhametov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Moscow appointed Mr. R. Shaymukhametov as Insolvency Manager for CJSC Financial Company Ist (TIN 7701151699). He can be reached at: R. Shaymukhametov Post User Box 3 450001 Ufa Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-29569/06-71-489B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Financial Company Ist Room 1 Ak. Kapitsy Str. 32 Moscow Region Russia AGRO-LAND CJSC: Court Names A. Ilyin as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. A. Ilyin as Insolvency Manager for CJSC Agro-Land (TIN 5202009767). He can be reached at: A. Ilyin Post User Box 6 603022 Nizhniy Novgorod Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-27320/2006-24-360. The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Agro-Land Shkolnaya Str. 1 V. Vrag Arzamasskiy Region Nizhniy Novgorod Region Russia AGRO-SERVICE OJSC: Court Names A. Ivonin as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kirov Region appointed Mr. A. Ivonin as Insolvency Manager for OJSC Agro-Service. He can be reached at: A. Ivonin Oktyabrskiy Pr. 54 610046 Kirov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-561/06-344/20. The Arbitration Court of Kirov Region is located at: K-Libknekhta Str. 102 610017 Kirov Region Russia The Debtor can be reached at: OJSC Agro-Service Chapaeva Str. 88 Kotelnich Kirov Region Russia AURORA CJSC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Tyumen Region commenced bankruptcy supervision procedure on CJSC Aurora. The case is docketed under Case No. A70-6738/3-06. The Temporary Insolvency Manager is: I. Matlygin Post User Box 277 620072 Ekaterinburg Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: CJSC Aurora Mosk. Trakt 14 625003 Tyumen Region Russia BIRSKIY PRODUCTION: Court Names M. Nigmatullin to Manage Assets --------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. M. Nigmatullin as Insolvency Manager for CJSC Birskiy Production Factory. He can be reached at: M. Nigmatullin Mira Str. 129 Biysk 452451 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-21239/06-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: M. Nigmatullin Mira Str. 129 Biysk 452451 Bashkortostan Republic Russia BUILDER CJSC: Court Names V. Suvorova as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Kurgan Region appointed Ms. V. Suvorova as Insolvency Manager for CJSC Builder. She can be reached at: V. Suvorova Stroiteley Str. 12 Belozerskoye Kurgan Region Russia Tel: 8 (35232) 2-16-68 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34-1115/2006. The Debtor can be reached at: CJSC Builder Stroiteley Str. 12 Belozerskoye Kurgan Region Russia CLOTHES OJSC: Court Names S. Ivanov as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. S. Ivanov as Insolvency Manager for OJSC Factory Clothes (TIN 0268013571). He can be reached at: S. Ivanov Room 60 Sovetskaya Str. 104 Sterlitamak 453124 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-9781/06-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: OJSC Factory Clothes Khudayberdina Str. 120 Sterlitamak Bashkortostan Republic Russia DZERZHINSK-NII-GAS: Bankruptcy Hearing Slated for March 27 ---------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 1:00 p.m. on March 27, 2007, to hear the bankruptcy supervision procedure on OJSC Dzerzhinsk-Nii-Gas (TIN 5249075050). The case is docketed under Case No. A43-32370/2006 33-332. The Temporary Insolvency Manager is: O. Kozlov Post User Box 71 Central Post Office 603000 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: OJSC Dzerzhinsk-Nii-Gas Nauki Str Dzerzhinsk Nizhniy Novgorod Region Russia INTERNATIONAL BANK: Fitch Affirms Issuer Default Rating at B- ------------------------------------------------------------- Fitch Ratings affirmed Russia-based International Bank of St. Petersburg's ratings at Issuer Default B-, National Long-term BB, Short-term B, Individual D/E, and Support 5. The Outlooks on the Issuer Default and National ratings remain Stable. IBSP's ratings reflect its size and franchise, which are small by international standards, risks associated with the concentration of both its loan book and client funding, and large investments in securities. They also take into account its modest performance, being affected by volatile trading gains/losses and high operating costs. However, the ratings also factor in the bank's relatively good asset quality to date supported by a favorable economic environment and reasonable liquidity. Capital ratios have fallen during 2006 to moderate levels. A recent small equity injection and a planned increase in subordinated deposits in first quarter of 2007 will provide some relief in the short term. However, further capital contributions and an avoidance of credit and trading losses will be needed in 2007 to maintain capitalization at adequate levels in light of the bank's growth plans. Negotiations are ongoing with a view to attracting a strategic investor; pending their completion, Fitch understands that capitalization is likely to be managed close to minimum regulatory levels. Upside potential to the ratings could result from the successful expansion of the bank's franchise, stronger performance, a decrease in asset concentrations, diversification of funding and stronger capitalization. Attraction of a strategic investor as a new majority owner able to provide tangible support to the bank could also generate significant rating upside. Downward pressure on the ratings is viewed as unlikely at present, but could result from deterioration in asset quality, a significant further fall of capital adequacy ratios or a return to high levels of speculative securities trading. IBSP is a medium-sized Russian bank, ranked 80th by total assets in Russia at end-H106. Headquartered in St.Petersburg, the bank has historically been focusing on servicing medium-sized corporates in the home region, while its franchise is diversifying gradually through Moscow branch operations and leasing transactions. IBSP is 98%-owned by its chairman, Sergey Bazhanov. KAMYSHEVSKOYE CJSC: Bankruptcy Hearing Slated for March 14 ---------------------------------------------------------- The Arbitration Court of Novosibirsk Region will convene at 10:00 a.m. on March 14, 2007, to hear the bankruptcy supervision procedure on CJSC Kamyshevskoye. The case is docketed under Case No. A45-17918/06-43/486. The Temporary Insolvency Manager is: V. Makarov Post User Box 325 Krasnoobsk 630501 Novosibirsk Region Russia The Arbitration Court of Novosibirsk Region is located at: Kirova Str. 3 630007 Novosibirsk Region Russia The Debtor can be reached at: CJSC Kamyshevskoye Kamyshevo Ust'-Tarkskiy Region 632167 Novosibirsk Region Russia METROMEDIA INT'L: Names New Members to Board of Directors --------------------------------------------------------- Metromedia International Group Inc. reveals that according to results certified by the independent inspectors of election, IVS Associates, Inc., its common stockholders have elected: -- John S. Chalsty, -- Clark A. Johnson, -- Stuart Subotnick, -- Alan K. Greene, -- Mark S. Hauf, -- I. Martin Pompadur and -- William F. Harley, III, while its preferred stockholders elected: -- Wayne F. Henderson and -- David Gale, to the group's Board of Directors at the Company's annual meeting of stockholders held on Dec. 15, 2006. About Metromedia Based in Charlotte, North Carolina, Metromedia International Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock) -- http://www.metromedia-group.com/-- through its subsidiary, Metromedia International Telecommunications, owns interests in telecom and cable TV operations in Russia, Georgia, and elsewhere in Eastern Europe. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephone operator. * * * In October 2006, Metromedia said it is filing a Chapter 11 Plan in the U.S. after receiving a binding offer to acquire all of the Company's business interests in Georgia for a cash price of US$480 million from an investment group comprised of: -- Istithmar, an alternative investment house based in Dubai, United Arab Emirates; -- Salford Georgia, the Georgian office of Salford Capital Partners Inc., a private equity and investment management company which manages investments in the CIS and Central & Eastern Europe; and -- Emergent Telecom Ventures, a communications merchant bank focused on pursuing telecommunications opportunities in the Emerging Markets. Upon the approval of the plan, all of the preferred and common equity interests in the Company will be converted into the right to receive the cash remaining after payment of all allowed claims and the costs and expenses associated with the sale and the Wind-Up. Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. NEFTE-MASH OJSC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic commenced bankruptcy supervision procedure on OJSC Oktyabrskiy Factory Nefte-Mash. The case is docketed under Case No. A07-17313/ 06-G-PAV. The Temporary Insolvency Manager is: E. Malyadskiy Post User Box 7 Post Office 22 Ufa 450022 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 Oktyabrskiy Factory Nefte-Mash Kooperativnaya Str., 67 Oktyabrskiy 452620 Bashkortostan republic Russia NOVATEK OAO: Appoints New Members to Board of Directors ------------------------------------------------------- OAO Novatek disclosed the results of its extraordinary general shareholders' meeting, which took place on Dec. 13. At the EGM, shareholders approved the early termination of the powers of the Company's existing Board of Directors and then elected the new members of the Board. The new Board is comprised of: -- Akimov Andrei Igorevich, Chairman of the Management Board of Gazprombank; -- Ruben Karlenovich Vardanian: Chairman of the Board of Directors of Troika Dialog Group; -- Mark Anthony Gyetvay: Chief Financial Officer of Novatek; -- Vladimir Alexandrovich Dmitriev: Chairman of the Board of Directors of Vnesheconombank; -- Leonid Viktorovich Mikhelson: Chairman of the Management Board of Novatek; -- Alexander Yegorovich Natalenko: Chairman of the Board of Directors of Novatek; -- Kirill Gennadievich Seleznev: member of the Board of Directors of Gazprom, Director of Gazprom's Gas and Liquid Hydrocarbons Marketing and Processing Department, and General Director of Mezhregiongaz; and -- Ilia Arturovich Yuzhanov: Chairman of the Supervisory Board of Nomos-Bank and a member of the Board of Directors of UES. NOVATEK's Board of Directors expressed their gratitude to former members of the Board, A.N. Dmitrievsky, Director of the Russian Academy of Sciences' Institute of Petroleum and Gas, and A.M. Brekhuntsov, General Director of the Siberian Scientific and Analytical Center, for their contributions to the Board from June to December 2006. About Novatek Headquartered in Tarko-Sale, Russia, OAO Novatek -- http://www.novatek.ru/-- engages in the exploration, production and processing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Region in Western Siberia. For the first half of 2006, Novatek posted RUR7.2 billion in net profit on RUR23.5 billion in revenues, compared to RUR7.9 billion in net profit on RUR17.4 billion in revenues for the same period in 2005. As of June 30, 2006, OAO Novatek had RU80.5 billion in total assets, RUR17.2 billion in total liabilities and RUR63.3 billion in total equity. * * * As reported in the TCR-Europe on March 21, Standard & Poor's Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. POULTRY FARM: Chuvashiya Bankruptcy Hearing Slated for April 19 --------------------------------------------------------------- The Arbitration Court of Chuvashiya Republic will convene at 10:30 a.m. on April 19, 2007, to hear the bankruptcy supervision procedure on LLC Poultry Farm. The case is docketed under Case No. A79-10025/2006. The Temporary Insolvency Manager is: L. Pavlunina Ishleyskoye Shosse 8 Cheboksary 428000 Chuvashiya Republic Russia The Debtor can be reached at: LLC Poultry Farm Myslets Shumerlinskiy Region Chuvashiya Republic Russia SALAVATSKIY DIARY: Court Names M. Mulyukov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. M. Mulyukov as Insovlency Manager for Municipal Unitary Enterprise Salavatskiy Diary (TIN 0266019627). He can be reached at: M. Mulyukov Post User Box 20 Central 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. A07-27218/05-G-KhRM. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: Municipal Unitary Enterprise Salavatskiy Diary Nurimanova Str. 16/64 Salavat 453256 Bashkortostan Republic Russia SALAVATSKIY BUILDER: Court Names Z. Sattarova to Manage Assets -------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Ms. Z. Sattarova as Insolvency Manager for CJSC Salavatskiy Builder (TIN 0266011468). She can be reached at: Z. Sattarova Initsiativnaya Str. 12 Kirillovo Ufimskiy Region 450069 Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-28500/05-G-FLE. The Arbitration Court of Bashkortostan Republic is located at: Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: CJSC Salavatskiy Builder Vokzalnaya Str. 22 Salavat Bashkortostan Republic Russia SEVERSTAL OAO: Keeps Free Float at Current Level; Won't Increase ---------------------------------------------------------------- OAO Severstal will not increase its shares available to the investing public, RosBsuinessConsulting reports citing company Chief Executive Alexei Mordashov. According to RBC, Mr. Mordashov revealed that Severstal's free float is around 18% of its total stock. More than half of the free float shares are traded on the London Stock Exchange. Mr. Mordashov added that the company's free float is at the same level as other metallurgical companies', RBC relates. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * On Oct. 10, Moody's Investors Service rates Severstal's senior unsecured debt at B1 and and long-term corporate family rating at Ba3. ON July 26, Standard & Poor's Ratings Services rated the company's issuer credit at BB-. As reported in the TCR-Europe on June 28, Fitch Ratings maintained the Rating Watch Positive status for OAO Severstal's ratings of Issuer Default BB-, senior unsecured BB-, Short-term B and National Long-term A+. SILVER LLC: Court Names V. Vinogorov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow Region appointed Mr. V. Vinogorov as Insolvency Manager for LLC Silver. He can be reached at: V. Vinogorov Post User Box 96 2nd Dubrovskaya Str. 1 109044 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A41-K2-15131/06. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: LLC Silver Ozerskiy Pr. 2 Kolomna 140404 Moscow Region Russia TUYMAZINSKIY MEAT-PACKING: Asset Sale Slated for December 27 ------------------------------------------------------------ A. Shaykhetdinov, the bidding organizer for OJSC Tuymazinskiy Meat-Packing Factory, will open a public aution for the company's properties at 4:00 p.m. on Dec. 27 at: OJSC Tuymazinskiy Meat-Packing Factory Severnaya Str. 3 Tuymazy Bashkortostan Republic Russia The company has set a RUR2,802,000 starting price for the auctioned assets. Interested participants have until Dec. 25 to deposit an amount equivalent to 20% of the starting price to: OJSC Tuymazinskiy Meat-Packing Factory Settlement Account 40702810407870003223 in OJSC Sots-invest-bank Additional Office in Tuymazy BIK 048073739 TIN of Bank 0274061206 KPP 025201001 Bidding documents must be submitted to: A. Shaykhetdinov Severnaya Str. 3 Tuymazy Bashkortostan Republic Russia Tel: 8-901-441-91-77, 8-917-456-19-57 The Debtor can be reached at: OJSC Tuymazinskiy Meat-Packing Factory Severnaya Str. 3 Tuymazy Bashkortostan Republic Russia ========= S P A I N ========= GENOVA HIPOTECARIO IX: Fitch Rates EUR10.7-Mln Notes at BB ---------------------------------------------------------- Fitch Ratings assigned final ratings to AyT Genova Hipotecario IX, Fondo de Titulizacion Hipotecaria's mortgage-backed floating-rate notes totaling EUR1 billion due in July 2039: -- EUR217.5 million Class A1: AAA; -- EUR750 million Class A2: AAA; -- EUR11 million Class B: AA-; -- EUR10.8 million Class C: BBB+; and -- EUR10.7 million Class D: BB. This transaction is a cash flow securitization of a EUR1 billion static pool of first-ranking residential mortgage loans originated by Barclays Bank, S.A., an entity that is 99.7%-owned by Barclays Bank PLC. This is the ninth residential mortgage securitization conducted by BBSA through the "Genova" program and the seventh rated by Fitch. As in previous Genova transactions, BBSA originated the securitized mortgages and continues to service the portfolio. The ratings on the notes are based on the quality of the underlying collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structure of the transaction. The ratings address the fund's capacity for timely payment of interest on each payment date and for repayment of the principal during the life of the operation and, in all events, prior to the legal maturity date, according to the terms and conditions of the documentation, which envisage interest deferral triggers on the Class B, C and D notes. The fund is regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose is to transform into securities the mortgage participations it has acquired from BBSA. The PHs were subscribed by Ahorro y Titulizacion, S.G.F.T., S.A., whose sole function is to manage asset-backed notes on behalf of the fund. The securitized pool comprises "Hipoteca Remunerada" loans, an amortizing mortgage product bearing a margin of 45bp over 12- month Euribor. All loans are paid via direct debit since the Hipoteca Remunerada product is marketed along with an interest- bearing bank account. Since Hipoteca Remunerada is primarily targeted at high-net- worth Spanish clients, the average value of the properties backing the mortgages is over EUR328,000 and many of them fall into the high end of the Spanish property market, where demand may slow in times of economic crisis. Fitch addressed this risk in its recovery rate calculations by increasing the market value decline assumptions for these high- value properties through application of a jumbo stress of between 15% and 25%. MADRID RMBS I: Fitch Assigns BB+ Rating to EUR21-Million Notes -------------------------------------------------------------- Fitch Ratings assigned final ratings to Madrid RMBS I, Fondo de Titulizacion de Activos's notes totaling EUR2 billion due in June 2049: -- EUR460 million Series A1: AAA; -- EUR1.34 billion Series A2: AAA; -- EUR70 million Series B: AA; -- EUR75 million Series C: A; -- EUR34 million Series D: BBB; and -- EUR21 million Series E: BB+. This transaction is a cash-flow securitization of EUR2 billion static pool of residential mortgage loans granted by Caja de Ahorros y Monte de Piedad de Madrid. The ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement and the sound legal and financial structures. Initial credit enhancement for the Class A notes, totaling 13.55%, is provided by subordination of the Class B notes, the Class C notes, the Class D notes, the Class E notes and an initial reserve fund. Initial CE is 10.05% for the Class B notes, 6.3% for the Class C notes and 4.6% for the Class D notes and for each note, is provided by the notes subordinated to that Class and by the reserve fund. Initial CE for the Class E notes is 3.55% and is provided by the reserve fund. The ratings address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, Class C, Class D and Class E notes, as well as the repayment of principal at legal maturity. This is the first securitization transaction brought to the market by Caja Madrid. Caja Madrid's operations are centered on its home region of Madrid. Its core activities are deposit- taking, mortgage and corporate lending. ===================== S W I T Z E R L A N D ===================== ALGRA-VERLAG JSC: Hofe Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Hofe commenced bankruptcy proceedings against JSC Algra-Verlag on Aug. 21. The Debtor can be reached at: JSC Algra-Verlag Seefeldweg 9 Postfach 8640 Hurden Switzerland The Bankruptcy Service of Hofe can be reached at: Bankruptcy Service of Hofe 8832 Wollerau Schwyz Switzerland BUZRUN SPORT: Lucerne Court Closes Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of Luzern-Land entered Oct. 30 an order closing the bankruptcy proceedings of JSC Buzrun Sport Technologies. The Debtor can be reached at: JSC Buzrun Sport Technologies Jodersmatt 2 6014 Littau Lucerne Switzerland The Bankruptcy Service of Luzern-Land can be reached at: Bankruptcy Service of Luzern-Land 6011 Kriens Lucerne Switzerland COBU LLC: Lucerne Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court of Luzern-Stadt commenced bankruptcy proceedings against LLC CoBu on June 23. The Debtor can be reached at: LLC CoBu Bernstrasse 36 6003 Luzern Switzerland The Bankruptcy Service of Luzern-Stadt can be reached at: Bankruptcy Service of Luzern-Stadt 6000 Luzern 5 Switzerland E. URBINATI: St. Gallen Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of St. Gallen commenced bankruptcy proceedings against LLC E. Urbinati Prazisionsmechanik on Aug. 3. The Debtor can be reached at: LLC E. Urbinati Prazisionsmechanik Burerfeld 16 9245 Oberburen St. Gallen Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Branch Oberuzwil Fritz Buchschacher 9242 Oberuzwil St. Gallen Switzerland EXPO AUTOSPRITZWERK: Sursee Court Starts Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Court of Sursee commenced bankruptcy proceedings against LLC EXPO Autospritzwerk on Oct. 25. The Debtor can be reached at: LLC EXPO Autospritzwerk Luzernstrasse 19 6206 Neuenkirch Lucerne Switzerland The Bankruptcy Service of Sursee can be reached at: Bankruptcy Service of Sursee 6018 Buttisholz Lucerne Switzerland KJL MANAGEMENT: Zug Court Closes Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Zug entered Nov. 2 an order closing the bankruptcy proceedings of JSC KJL Management. The Debtor can be reached at: JSC KJL Management Zugerstrasse 47 6330 Cham Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland MK MEDIA: Luzern-Stadt Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Luzern-Stadt commenced bankruptcy proceedings against LLC MK Media on Oct. 19. The Debtor can be reached at: LLC MK Media St. Karli-Strasse 8 6004 Luzern Switzerland The Bankruptcy Service of Luzern-Stadt can be reached at: Bankruptcy Service of Luzern-Stadt 6000 Luzern 5 Switzerland NG HANDEL: Hofe Court Suspends Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Service of Hofe suspended the bankruptcy proceedings of LLC NG Handel und Verwaltung on Nov 20, pursuant to Article 230 of the Swiss Bankruptcy Code. The right for the additional deposit is retained. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF6,500 deposit. The Debtor, declared bankrupt on Oct. 4, can be reached at: LLC NG Handel und Verwaltung Churerstrasse 98 8808 Pfaffikon SZ Switzerland The Bankruptcy Service of Hofe can be reached at: Bankruptcy Service of Hofe 8832 Wollerau Schwyz Switzerland NUSSBAUMER BAREN: Hofe Court Suspends Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Service of Hofe suspended the bankruptcy proceedings of LLC Nussbaumer Baren on Nov 20, pursuant to Article 230 of the Swiss Bankruptcy Code. The right for the additional deposit is retained. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF6,000 deposit. The Debtor, declared bankrupt on Oct. 16, can be reached at: LLC Nussbaumer Baren Dorfplatz 2 8832 Wollerau Schwyz Switzerland The Bankruptcy Service of Hofe can be reached at: Bankruptcy Service of Hofe 8832 Wollerau Schwyz Switzerland VERPRO INDUSTRIESPRITZWERK: Court Starts Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Court of Bern-Mittelland commenced bankruptcy proceedings against LLC Verpro Industriespritzwerk on Sept. 14. The Debtor can be reached at: LLC Verpro Industriespritzwerk Murtenstrasse 147 3008 Bern Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland ============= U K R A I N E ============= METIZ-DON LLC: Creditors' Claims Due Jan. 7, 2007 ------------------------------------------------- Creditors of LLC Metiz-Don (code EDRPOU 32727658) have until Jan. 7, 2007, to submit their proofs of claim to: Igor Fedorovych Rozyavko, Temporary Insolvency Manager Khmelnitskogo Avenue 85 Bogdana 83050 Donetsk Region Ukraine The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on the company on Nov. 27. The case is docketed under Case No. 42/261. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Metiz-Don Antenna Str. 18/3 69057 Zaporizzha Region Ukraine NEGO TRADE: Donetsk Court Starts Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on LLC Nego Trade Industrial (code EDRPOU 23772484) on Nov. 27. The case is docketed under Case No. 42/261. The Temporary Insolvency Manager is: Sergy Anatoliyovych Elistratov Bogdana Khmelnitskogo Avenue 85 83050 Donetsk Region Ukraine The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Nego Trade Industrial Komarova Str. 32 Gorlivka Mykytivsky 84630 Donetsk Region Ukraine NUR LLC: Mykolaiv Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Mykolaiv Region commenced bankruptcy supervision procedure on LLC NUR (code EDRPOU 32508130) on Nov. 21. The case is docketed under Case No. 5/445/06 The Temporary Insolvency Manager is: Tetyana Volodymyrivna Rudenko Lazurna Str. 50 Mykolaiv Region Ukraine The Economic Court of Mykolaiv Region is located at: Admiralska Str. 22 54009 Mikolaiv Region Ukraine The Debtor can be reached at: LLC Nur Naberezhna Str. 29 Mykolaiv Region Ukraine SPETZFTORMET LLC: Creditors Must File Claims by Jan. 7, 2007 ------------------------------------------------------------ Creditors of LLC Spetzftormet (code EDRPOU 32372698) have until Jan. 4, 2007, to submit their proofs of claim to: V. D. Ischenko, Temporary Insolvency Manager Post Office Box 21 Peremogy Str. 72311 Melitopol Region Ukraine The Economic Court of Zaporizzha Region commenced bankruptcy supervision procedure on the company on Oct. 23. The case is docketed under Case No. 25/233/06. The Economic Court of Zaporizzha Region is located at: Sxhaumyana Str. 4 69001 Zaporizza Region Ukraine The Debtor can be reached at: LLC Spetzftormet Komunariv Avenue 104 Zagyblyh 83003 Donetsk Region Ukraine UKRPODSHYPNYK-DNIPRO PRODUCTION: Bankruptcy Supervision Starts -------------------------------------------------------------- The Economic Court of Dnipropetrovsk Region commenced bankruptcy supervision procedure on LLC Ukrpodshypnyk-Dnipro Production Comercial Firm (code EDRPOU 32403544) on Nov. 21. The case is docketed under Case No. 40/376-06. The Temporary Insolvency Manager is: Ludmila Anatolievna Zaika Turgenivska Str. 52/58 04050 Kyiv Region Ukraine The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region Ukraine The Debtor can be reached at: LLC Ukrpodshypnyk-Dnipro Titova Str. 27 Dnipropetrovsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANCED MICRO: Forecasts 20% Increase in Shipments for 2007 ------------------------------------------------------------ Advanced Micro Devices Inc. anticipates a 20% increase in shipments in 2007, Ian King of Bloomberg News reports. In a presentation to New York analysts, AMD chief financial officer Robert Rivet forecasted that the company's gross margin would increase 50% in 2007, instead of the 47% average in the previous four quarters. "They gave a very optimistic long-term view," commented John Lau, an analyst at Jefferies & Co. Mr. Lau noted that the company did not focus on the current quarter's price increases. Citing Mercury Research, Bloomberg relates that AMD's market share is up 17% from last year. The company's share of sales increased by 23.3% in the third quarter of 2006. The company's US$5.4 billion acquisition of graphics chip maker ATI Technologies Inc. in October will help win more market share from Intel Corp., AMD chief executive officer Hector Ruiz said. The company is benefiting from large PC makers diversifying their product lines to include AMD's microprocessors. AMD will release its 2006 fourth quarter financial results in January 2007. About AMD Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. -- http://www.amd.com/-- designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. Standard & Poor's removed the rating from CreditWatch negative where it had been placed on July 24, 2006, following the announced acquisition of unrated ATI Technologies Inc. The ratings outlook is negative. At the same time, the rating agency assigned its 'BB-' bank loan rating, one notch above the corporate credit rating, and a '1' recovery rating to the company's proposed US$2.5 billion senior secured term loan, to be used as partial funding of the acquisition. ANTHRACITE EURO: Fitch Assigns BB Rating to EUR25-Mln Sr. Notes --------------------------------------------------------------- Fitch Ratings assigned Anthracite Euro CRE CDO 2006-1 Plc's issue of EUR276 million floating-rate notes due 2042 final ratings: -- EUR142.5 million Class A senior secured notes: AAA; -- EUR29 million Class B senior secured notes: AA+; -- EUR48.5 million Class C senior secured deferrable notes: A+; -- EUR31 million Class D senior secured deferrable notes: BBB; and -- EUR25 million Class E senior secured deferrable notes: BB. The transaction, the first European real estate collateralized debt obligation, is a securitization of primarily commercial mortgage-backed securities and subordinate real estate debt managed by BlackRock Financial Management Inc. Approximately 80% of the issuance proceeds are invested at closing, with the remainder targeted for the first three months of the transaction. The final ratings of the Class A and B notes address ultimate repayment of principal at maturity and timely payment of interest according to the terms of the notes. For all other rated Classes of notes, the final ratings address ultimate payment of principal and interest, including any deferred interest, at maturity according to the terms of the notes. Fitch carried out an on-site review of the manager at its New York offices and is comfortable in its ability not only as a portfolio manager but also as a real estate asset manager. This latter capability is crucial given the nature and on average speculative-grade credit quality of the collateral. The final ratings are based among other things on the credit enhancement provided to the various Classes of notes in the form of structural subordination and excess spread. Credit enhancement for the Class A notes totals 57.46%, and is provided by the Class B notes at 8.66%, the Class C notes at 14.48%, the Class D notes at 9.25%, the Class E notes at 7.46% and the subordinated notes. It should be noted that a portion of the note proceeds will be used to pay certain initial expenses of the issuer rather than to purchase collateral, leaving 17.61% of first loss coverage. ARBENTIN IT: Names Roderick Julian Jones Liquidator --------------------------------------------------- Roderick Julian Jones of Jackson Gregory & Co. was appointed Liquidator of Arbentin IT Limited on Dec. 6 for the creditors' voluntary winding-up procedure. The company can be reached at: Arbentin IT Limited Ingles Manor Castle Hill Avenue Folkestone Kent CT202RD United Kingdom Tel: 01793 554 877 ATMEL CORP: Plans to Sell UK & Germany Wafer Fabrication Plants --------------------------------------------------------------- Atmel Corp. reported strategic restructuring initiatives designed to enhance profitability, accelerate the company's growth and reduce costs. These initiatives include: -- a focus on the company's high-growth, high-margin proprietary product lines. To better align Atmel's resources with highest-growth opportunities, the company is redeploying resources to accelerate the design and development of products that target expanding markets and is halting development on lesser, unprofitable, non-core products. -- optimize Atmel's manufacturing operations. Atmel will seek to sell its wafer fabrication facilities in North Tyneside, United Kingdom, and Heilbronn, Germany. These actions are expected to increase manufacturing efficiencies by better utilizing remaining wafer fabrication facilities while reducing future capital expenditure requirements. -- the adoption of a fab-lite strategy. Through better utilization of its remaining wafer fabs and the expansion of its foundry relationships, Atmel will significantly reduce manufacturing costs and continue to design and develop innovative new products utilizing world-class manufacturing facilities. The company anticipates cost savings in the range of US$70 million to US$80 million in 2007 reaching an annual rate of US$80 million to US$95 million by 2008. Included in the cost savings is approximately US$55 million per year resulting from the expected sale of the wafer fabrication facilities. Through a combination of voluntary resignations, attrition and other actions, Atmel expects a reduction in its non- manufacturing workforce of approximately 300 employees, or 10%. The company anticipates headcount to be reduced by approximately 1,000 additional employees upon completion of the sales of the North Tyneside and Heilbronn wafer fabrication facilities. Atmel will continue to meet the production needs of its worldwide customer base during this transition through the use of internal capacity and existing foundry partners. In addition, Atmel anticipates entering into a transition sourcing agreement with the eventual buyers of the wafer fabrication facilities. "These initiatives follow a thorough analysis of the company's operations and strongest opportunities for growth," Atmel president and chief executive officer Steven Laub said. "While this decision was difficult given the company's many dedicated employees, these actions are essential to better position Atmel to compete and drive value for our shareholders. "Focusing on our core business competencies, expanding our foundry relationships, and the adoption of a fab-lite model are the right strategies for Atmel to better serve our customers, reduce manufacturing costs, and enhance shareholder value." As a result of the initiatives, the company estimates it will record one-time restructuring and impairment charges in excess of US$200 million in the fourth quarter of 2006 for fixed asset write-downs, severance, and other expenses associated with the restructuring. A significant portion of these non-recurring charges relate to the non-cash write-down of the North Tyneside manufacturing facility Atmel intends to sell. About Atmel Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory, and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. * * * Standard & Poor's Rating Services assigned its single-B long- term foreign issuer and long-term local issuer credit ratings to Atmel Corp. on Oct. 24, 2001, and said the outlook, at that time, was negative. ATMEL CORP: NASDAQ Conditionally Grants Continued Listing --------------------------------------------------------- Atmel Corp. disclosed that the NASDAQ Listing Qualifications Panel has granted the company's request for continued listing on the NASDAQ Stock Market subject to certain conditions. On Feb. 9, 2007, Atmel must file with the Securities and Exchange Commission its Forms 10-Q for its second quarter ended June 30, 2006, and third quarter ended Sept. 30, 2006, as well as any necessary restatements for prior financial periods. The company must also be able to demonstrate compliance with all other requirements for continued listing on the Nasdaq Stock Market. In granting the extension, the Panel has required that through Feb. 9, 2007, Atmel will notify the Panel of the occurrence of any significant events, including any event that may call into question Atmel's historical financial information or affect the company's ability to comply with any NASDAQ listing requirement or satisfy the Feb. 9, 2007, deadline. In addition, any submissions to the Panel, press releases, or public filings prepared by Atmel will be subject to review by the Panel, which may, at its discretion, request additional information before determining that Atmel has complied with the terms of the Panel's decision. The Audit Committee of the company's Board of Directors initiated an independent investigation regarding the timing of past stock option grants and other potentially related issues. The Audit Committee, with the assistance of independent legal and forensic accounting experts, has reached a preliminary determination that, in connection with the requirements of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees, the actual measurement dates for certain stock options differed from the recorded measurement dates for those stock options. Based on the Audit Committee's preliminary determination, the company expects that the difference in these measurement dates will result in material non-cash, stock-based compensation expenses. The company disclosed of the decision of the Audit Committee that prior financial statements should no longer be relied upon. The Audit Committee has not completed its work nor reached final conclusions and is continuing its investigation into the circumstances that gave rise to the differences. The Audit Committee is making every effort to complete its investigation, and the company will make every effort to file its restated financial statements as soon as practicable after the completion of the investigation. There can be no assurance that Atmel will remain listed on the NASDAQ Global Market unless and until the company fully satisfies the terms of the Panel's decision. Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) -- http://www.atmel.com/-- designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory, and radio frequency components. Leveraging one of the industry's broadest intellectual property technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. It is focused on consumer, industrial, security, communications, computing, and automotive markets. * * * Standard & Poor's Rating Services assigned its single-B long- term foreign issuer and long-term local issuer credit ratings to Atmel Corp. on Oct. 24, 2001, and said the outlook, at that time, was negative. BISHOP & CAIN: Appoints David Wald to Liquidate Assets ------------------------------------------------------ David Wald of D.Wald & Co. was appointed Liquidator of Bishop & Cain Limited on Dec. 8 for the creditors' voluntary winding-up procedure. The company can be reached at: Bishop & Cain Limited Bakerscroft High Street Cheshunt Waltham Cross Hertfordshire EN8 0DE United Kingdom Tel: 01992 622 885 Fax: 01992 622 885 BLUESTONE SECURITIES: Fitch Affirms Two Tranches at BB ------------------------------------------------------ Fitch Ratings affirmed 11 tranches of two of the Bluestone Securities Plc series of non-conforming residential mortgage backed securities transactions. The Bluestone program, established in December 2004 by Bayerische Hypo-und Vereinsbank AG, was created to purchase portfolios from third-party originators in the U.K. The first securitization, Bluestone 2004-1 consisted of mortgage loans predominantly originated by Amber Home Loans, with the remaining originated by Rooftop Mortgages. Analysis highlights that the Rooftop collateral was experiencing higher loss severities than the Amber collateral at November 2006. The number of loans that have exited the Rooftop portfolio is less than Amber, although the weighted average loss severity on the Rooftop repossessed cases is significantly higher at 15.87%, compared to 8.97% for Amber. The combined WALS on the total sold repossessions is 11.85%. Average loss severities remain well below loss severity assumptions for Bluestone 2004-1 for the lowest rated note category of BB. Delinquencies greater than three months appear to have stabilized in the last three quarters; the most recent quarter has seen a decrease to 20.7% from 21.1% of the outstanding portfolio balance. Such arrears compare with an average of 12.42% for similarly seasoned U.K. non-conforming RMBS transactions, as per Fitch's U.K. non-conforming index. The higher level of arrears is in line with Fitch's expectations given the credit quality of the portfolio. Weighted average frequency of foreclosure for each rating category was at the upper end of the WAFF range for U.K. non-conforming transactions, as reflected in high credit enhancement levels compared to many other non-conforming transactions. The switch to pro-rata paydown of the notes in September 2006 initially slowed the growth of CE. However, the high annualized principal payment rates have continued to have a positive impact on de-leveraging the deal and building CE levels. There is a condition for the pro rata amortization to cease if arrears greater than three months exceed 22.5% of the outstanding mortgage balance. Given such arrears are close to this trigger, Fitch will monitor arrears performance closely. Unlike the first transaction, which referenced two originators, all of the loans in the second securitisation Bluestone Securities Plc - Series 2005-01 were originated by Platform Funding Limited, a wholly owned subsidiary of Britannia Building Society. The performance of the portfolio backing the second deal is significantly better than that backing the first transaction, owing to the characteristics of the loans. This portfolio contains a proportion of prime and near-prime borrowers, according to Platform product definitions. Delinquencies greater than three months are much lower in this series, currently accounting for 6.29% of the outstanding portfolio. Sold repossessions account for 0.4%, with a cumulative loss on these repossessed cases of 0.18% of the initial balance. Credit enhancement has experienced healthy growth in the year since issue, owing to the sequential paydown and relatively high PPR. The overall portfolio has amortized approximately 35%. The rating actions are: Bluestone Securities Plc - Series 2004-1 -- Class Aa (ISIN XS0208448331) and Class Aa I/O affirmed at AAA; -- Class Az (ISIN XS0208450311) and Class Az I/O affirmed at AAA; -- Class B (ISIN XS0208452879) affirmed at A; -- Class C (ISIN XS0208453687) affirmed at BBB; and -- Class D (ISIN XS0208453760) affirmed at BB. Bluestone Securities Plc - Series 2005-01 -- Class A (ISIN XS0222339631) affirmed at AAA; -- Class B (ISIN XS0222339391) affirmed at A; -- Class C (ISIN XS0222338740) affirmed at BBB; and -- Class D (ISIN XS0222338153) affirmed at BB. BOWEY GROUP: Creditors Confirm Liquidators' Appointment ------------------------------------------------------- Creditors of Bowey Group Limited (formerly Ralph Bowey & Son Limited) confirmed on Dec. 6 the appointment of Gordon Smythe Goldie and Allan David Kelly of Tait Walker as the company's Liquidators. The company can be reached at: Bowey Group Limited Albany Court Newcastle Business Park Newcastle Upon Tyne Tyne And Wear NE4 7YB United Kingdom Tel: 0191 273 3311 Fax: 0191 273 6620 BRIDAL SUITE: M. C. Hepworth Leads Liquidation Procedure -------------------------------------------------------- M. C. Hepworth of Businesscare Solutions Ltd. was appointed Liquidator of The Bridal Suite (Crowthorne) Limited on Dec. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: The Bridal Suite (Crowthorne) Limited 114 High Street Crowthorne Berkshire RG457AT United Kingdom Tel: 01344 780 232 BRITTONS OF DEVON: Names Stephen James Hobson as Administrator -------------------------------------------------------------- Stephen James Hobson of Quadra Business Recovery Ltd. was appointed administrator of Brittons of Devon Ltd. (Company Number 04650307) on Dec. 6. The administrator can be reached at: Stephen James Hobson Quadra Business Recovery Ltd. Southernhay House 36 Southernhay East Exeter Devon EX1 1NX United Kingdom Brittons of Devon Ltd. can be reached at: Unit 5 Fairfax Road Heathfield Industrial Estate Newton Abbot Devon TQ12 6UD United Kingdom Tel: 01626 203 000 Fax: 01626 203 030 CLIENTLOGIC: Raises SITEL Stockholders' Price to US$4.25 a Share ---------------------------------------------------------------- SITEL Corp. and ClientLogic Corp. had entered into an amendment to a previous Agreement and Plan of Merger among SITEL, ClientLogic and Stagecoach Acquisition Corp., dated Oct. 12, 2006. Under the terms of the amendment, SITEL stockholders will receive US$4.25 in cash for each outstanding share of common stock of SITEL held, which represents an increase of US$0.20 per share in cash from the price of US$4.05 per share in cash previously agreed with ClientLogic. The Board of Directors of SITEL has unanimously approved the amendment to the Merger Agreement. The transaction is expected to be completed in the first quarter of 2007 and remains subject to customary closing conditions, including the approval of SITEL's stockholders. On Dec. 6, prior to SITEL entering into the amendment with ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and Jefferies Capital Partners IV LLC revised their previously announced proposal to acquire all of the outstanding shares of common stock of SITEL to lower the proposed price of US$4.50 to US$4.25 per share in cash. The amendment with ClientLogic required SITEL to terminate the existing discussions with Gores/Calgary/Jefferies although it continues to permit SITEL to respond to additional proposals from third parties in the event the Board of Directors of SITEL determines in good faith after considering advice from its outside advisors that failure to do so would be inconsistent with its fiduciary obligations. In additon, the amendment increases the expense reimbursement portion of the amount payable by SITEL upon termination of the Merger Agreement in circumstances involving an alternative acquisition proposal by US$1 million. In connection with the proposed merger with ClientLogic, SITEL has set Jan. 12, 2007, as the date of its 2006 Annual Meeting of Stockholders at which SITEL will seek, among other things, stockholder approval of the Merger Agreement, as amended, and the transactions contemplated thereby. Holders of record of SITEL common stock as of 5:00 p.m., New York time, on Dec. 5, 2006, will be entitled to vote at the meeting. The meeting will be held at: Marriott Regency Hotel 10220 Regency Circle Omaha, Nebraska The meeting will begin at 1:00 p.m., local time, on Jan. 12. The definitive proxy statement and related materials will be mailed on or about Dec. 13, 2006, to stockholders of record on the record date. The US$4.25 to be paid in cash in the merger for each SITEL share represents an approximate 37.5% premium over the volume- weighted average closing price of SITEL common stock on the New York Stock Exchange for the thirty days prior to the public announcement of the execution and delivery of the Merger Agreement. About SITEL Corp. SITEL -- http://www.sitel.com/-- provides outsourced customer support services. SITEL designs and improves customer contact models across its clients' customer acquisition, retention, and development cycles. SITEL has over 42,000 employees in 101 global contact centers located in 26 countries. About ClientLogic ClientLogic Corp. -- http://www.clientlogic.com/-- is a business process outsourcing provider in the customer care and back office processing industries. ClientLogic's footprint spans 49 facilities in 13 countries: Austria, Canada, France, Germany, India, Ireland, Mexico, Morocco, Netherlands, Panama, Philippines, United Kingdom and the United States. CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review ---------------------------------------------------------------- Moody's Investors Service placed ClientLogic Corporation's B3 corporate family rating on review for possible upgrade after the company's disclosure of its revised plan to merge with Sitel Corp. and Sitel's recent return to filing timely financial statements with the U.S. Securities and Exchange Commission. As part of its review, Moody's will focus on resolution of the company's merger plan, including the combined firm's prospective capitalization, client contract performance, expense reduction, and free cash flow. Under the terms of the proposed merger, a newly formed subsidiary of ClientLogic will merge with SITEL and pay US$4.25 per share in cash for all of the outstanding common stock of SITEL. The transaction, which ClientLogic expects to be completed in the first quarter of 2007, is subject to customary closing conditions, including shareholder approval and regulatory clearances. In connection with the proposed merger, SITEL has set Jan. 12, 2007 as the date of its 2006 Annual Meeting of Stockholders at which SITEL will seek, among other things, stockholder approval of the merger. Headquartered in Nashville, Tennessee, ClientLogic Corporation provides outsourced call center services worldwide including Austria, France, Germany, Ireland, Netherlands, and the United Kingdom. CORDATUS CLO: S&P Assigns BB- Rating on EUR16-Mln Class E Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR356-million floating-rate notes to be issued by Cordatus CLO I PLC, a special purpose entity. At the same time, Cordatus I will issue EUR44-million of subordinated unrated notes. The collateral will consist of a portfolio of predominantly senior secured loans, managed by CVC Cordatus Group Ltd. Cordatus I is the first CLO managed by CVC. At closing, Cordatus I will issue EUR300-million of euro notes and EUR30 million (equivalent) of sterling notes. At the same time, it will enter into a variable funding note purchase agreement, under which it may draw up to EUR70 million (equivalent) in euros and British pounds sterling. Drawings in euros will fund only euro-denominated collateral and drawings in sterling will fund only sterling-denominated collateral. The issuer may, from time-to-time, refinance all or a portion of the VFN, and issue euro class A or sterling class A refinancing notes, which will be consolidated and form a single series, and rank pari passu with the class A notes then outstanding. Ratings List Cordatus CLO I PLC EUR356-Million (Equivalent) Secured Floating-Rate Notes and EUR44-Million Subordinated Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ VFN AAA 70 Euro A AAA 155.2 Sterling A(1) AAA 30 B AA 35.2 C A 21.6 D BBB- 28 E BB- 16 F1/F2 NR 44(2) (1) The amount listed is equivalent to EUR30-million, as the notes will be issued in sterling. (2) To be split between the class F1 and F2 notes. NR-Not rated. D.P.I. - DYNAMITE: Appoints Ian Franses to Administer Assets ------------------------------------------------------------ Ian Franses of Ian Franses Associates was appointed administrator of D.P.I. - Dynamite Promotions International (U.K.) Ltd. (Company Number 02850481) on Dec. 1. The administrator can be reached at: Ian Franses Ian Franses Associates 24 Conduit Place City of Westminster London W2 1HS United Kingdom Tel: 020 7262 1199 D.P.I. - Dynamite Promotions International (U.K.) Ltd. can be reached at: Britannia House 1 11 Glenthorne Road Hammersmith and Fulham London W6 0LH United Kingdom Tel: 020 8748 9898 Fax: 020 8748 4250 DIRECT LABELS: Brings In Administrator from Pattinsons ------------------------------------------------------ Ian Pattinson of Pattinsons was appointed administrator of Direct Labels Ltd. (Company Number 03332640) on Dec. 4. The administrator can be reached at: Ian Pattinson Pattinsons Kings Business Centre 90-92 King Edward Road Nuneaton Warwickshire CV11 4BB United Kingdom Tel: 024 7637 5777 Fax: 024 7638 7587 E-mail: insol@pattinsons.co.uk Direct Labels Ltd. can be reached at: Church Street Bridgtown Cannock Staffordshire WS11 0DB United Kingdom Tel: 01543 503 000 Fax: 01543 503 040 DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods ---------------------------------------------------------------- Eight vendors ask DURA Automotive Systems Inc., pursuant to Sections 503 and 546 of the Bankruptcy Code and applicable non- bankruptcy law, to return certain goods that are subject to reclamation: Vendor Value of Goods ------ -------------- Freedom Technologies Corp. US$164,576 S&S Porcelain Metals, LLC 144,449 Dexon Computer, Inc. 23,930 Sharon Tube Company 40,148 Metco Industries, Inc. 54,065 Steadfast Engineered Products, LLC 15,531 ACK Controls Inc. 169,260 Supreme Machined Products Co., Inc. of Spring Lake, Michigan 23,391 The Vendors inform the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware that the reclaimed goods were sold in the ordinary course of their businesses and delivered to the Debtors during the 45 days before they filed for bankruptcy. The Vendors believe that the Debtors were insolvent at the time that they received the goods. Steadfast Engineered Products requests for an inventory of the goods it delivered to the Debtors. Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). EMI GROUP: S&P Removes Ratings from Watch Neg. on Bid Rejection --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB/B' long- and short-term corporate credit and 'BB' senior unsecured debt ratings on U.K.-based music major EMI Group PLC. The long-term and debt ratings were removed from CreditWatch, where they had been placed with negative implications on Nov. 28, 2006, when the group reported a takeover approach. The outlook is negative. "EMI's announcement ending buyout talks removes the group's financial risk profile from the immediate threat posed by a potentially highly leveraged bid, against debt protection metrics that are already stretched for the ratings," said Standard & Poor's credit analyst Patrice Cochelin. "Nevertheless, we are concerned that EMI's top management -- but not necessarily its divisional management -- might continue to focus on takeover activity." The group recently announced an agreement on a 45% minority buyout of the Japanese recorded music operations of Toshiba Corp. (BBB/Negative/A-2). Although the transaction will increase EMI's control over an important subsidiary; improve cash flow circulation within the group; and reduce minority interest dividend "leakage" at a critical time, as asset disposals recently generated considerable cash proceeds in Japan; the GBP93 million cash outflow (about 9% of group net debt) will further depress EMI's debt measures in the near term. Proforma for the transaction, EMI's net fully adjusted debt at Sept. 30, 2006, was about 5.0x EBITDA. At Sept. 30, 2006, EMI had consolidated gross and net debt of GBP1.2 billion and GBP1 billion, respectively. Gross and net financial derivatives liabilities were GBP106 million and GBP66 million, respectively, at the same date. "We are concerned about EMI's ability to further improve its stretched financial profile in challenging market conditions," added Mr. Cochelin. "Recent free cash flow generation has been limited, and dividends are set to stay relatively high, constraining the scope for debt reduction from internally generated funds." The ratings could be lowered if prospects for a material improvement recede further. Conversely, the outlook could return to stable if the group shows significant free cash flow improvement and debt reduction. Standard & Poor's will continue to closely monitor EMI's acquisition plans. EUROTUNNEL GROUP: Board Picks Three Banks to Finance Plan --------------------------------------------------------- The Board of Directors of Eurotunnel Group approved the financing package brought forth by a consortium of bank lenders led by Goldman Sachs Group Inc. and Deutsche Bank on one hand, and Citigroup Inc. on the other. The board has studied the two financing offers, which provide for a complete financing of the proposed safeguard restructuring plan recently approved by Eurotunnel's creditors, suppliers and bondholders. The financing package will include: -- a long term loan of GBP1,500 million and EUR1.96 billion, equivalent to a total of GBP2.84 billion, in the form of a classic bank loan, repayable, by tranche, between 35 and 43 years. -- the underwriting of the Obligations Remboursable en Actions (ORAs) [convertible notes] in sterling and Euros, for holders of Tier 3 debt, for an amount of GBP965 million, allowing for the monetization of the ORAs. These two offers also take account of the future operational financing needs of the company and the possibility of an additional debt stream of GBP225 million for the redemption of ORAs. The two offers received, both in line with the company's business plan, were very competitive and very close. As a result, the Board has decided that: -- the GS/DB consortium will lead the financing of the safeguard plan; and -- at the request of the company, the GS/DB consortium will propose that Citigroup joins them to assure 30% of the financing. The new Eurotunnel debt, as it results from the proposed financing, is sustainable by the company through its operational performance and the reduction in annual financial charges. The financial charges on the new Senior debt should start at around GBP140 million per annum, repayments of the capital not becoming due until 2012. This level of financial charges should be compared to the GBP293 million of interest for 2006 and the estimated GBP320 million for 2007 (taking into account the forecast increase in European interest rates), which Eurotunnel would have had to pay on the old debt. As reported in the TCR-Europe on Nov. 28, creditors representing 72% of the financial establishment committee voted in favor of the company's proposed safeguard-restructuring plan. The committee holds 70% of the company's GBP6.2 billion debt. Terms of the Plan The principal elements of the proposals include: 1) the creation of a new company, Groupe Eurotunnel, which will launch an Exchange Tender Offer (ETO) to Eurotunnel's current shareholders. The shareholders will hold a minimum 13% of the equity in Groupe Eurotunnel; 2) Groupe Eurotunnel will subscribe to a new long-term loan of GBP2.840 billion (less than half of the current debt) from an international banking consortium; 3) Groupe Eurotunnel will issue GBP1.275 billion of convertible hybrid notes. The hybrid notes will be convertible over a maximum of three years and one month. Approximately 61.7% of the hybrids are redeemable by the company. 4) current Eurotunnel shareholders, who subscribe to the ETO, will hold a minimum of 13% of the equity in Groupe Eurotunnel. They can subscribe directly to the hybrid, up to a value of GBP60 million (EUR87.7 million) and will benefit from free warrants. The redemption of hybrid notes by the company would allow them to increase their share of the equity from 13% to 67%. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Company Crisis Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faced uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel obtained Aug. 2 an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). EVERON POWDER: Brings In Liquidator from Mayfields Insolvency ------------------------------------------------------------- Paul John Webb of Mayfields Insolvency Practitioners was nominated Liquidator of Everon Powder Coating Limited on Dec. 5 for the creditors' voluntary winding-up proceeding. Everon Powder Coatings Limited 12 Oughton Road Birmingham West Midlands B12 0DF United Kingdom Tel: 0121 4402243 Fax: 0121 4465115 FOILDEK ROOFINGS: Creditors Ratify Voluntary Liquidation -------------------------------------------------------- Creditors of Foildek Roofings Limited ratified on Dec. 6 the resolutions for voluntary liquidation together with the appointment of Alan H. Tomlinson of Tomlinsons as the company's Liquidator. The company can be reached at: Foildek Roofings Limited 532 Stretford Road Manchester Lancashire M16 9AF United Kingdom Tel: 0161 872 3181 Fax: 0161 848 7313 G B TRANSPORT: Hires T. Papanicola to Liquidate Assets ------------------------------------------------------ T. Papanicola of Bond Partners LLP was appointed Liquidator of G B Transport Training Services Limited on Dec. 8 for the creditors' voluntary winding-up proceeding. Headquartered in Wolverhampton, England, G B Transport Training Services Limited -- http://www.gbtransporttraining.co.uk/-- provides training for adults in driving large goods vehicles and passenger carrying vehicles. The company also operates in Wellington and Shrewsbury. GLOBAL CROSSING: Finance Unit to Offer GBP52-Mln Sr. Sec. Notes --------------------------------------------------------------- Global Crossing (U.K.) Finance Plc, a wholly owned finance subsidiary of Global Crossing (U.K.) Telecommunications Ltd. (GCUK), intends to offer, subject to market and other conditions, up to GBP52 million aggregate principal amount of its 11.75% Senior Secured Notes due 2014. The Notes will be issued under the indenture, dated as of Dec. 23, 2004, pursuant to which Global Crossing (U.K.) Finance Plc issued its dollar-denominated 10.75% Senior Secured Notes due 2014 and its sterling-denominated 11.75% Senior Secured Notes due 2014. The Notes are being sold only to qualified institutional buyers in the United States under Rule 144A and to qualified investors outside the United States that are non-U.S. Persons under Regulation S and have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any other applicable securities laws. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The net proceeds of the offering would be used to acquire Fibernet and its subsidiaries from Global Crossing Acquisitions (U.K.) Ltd., an acquisition vehicle under common control with GCUK that acquired Fibernet pursuant to an offer that was declared wholly unconditional on Oct. 11. Upon completion of the acquisition, Fibernet and its subsidiaries will guarantee all obligations under the indenture. GCUK expects to launch the offering on Dec. 14. About GCUK Global Crossing (U.K.) Telecommunications Ltd. provides a full range of managed telecommunications services in a secure environment ideally suited for IP-based business applications. The company provides managed voice, data, Internet and e- commerce solutions to the strong and established commercial customer base, including more than 100 U.K. government departments, as well as systems integrators, rail sector customers and major corporate clients. In addition, GCUK provides carrier services to national and international communications service providers. Global Crossing (U.K.) Telecommunications operates a high- capacity U.K. network comprising over 5,600 route miles of fiber optic cable connecting 150 towns and cities and reaching within just over one mile of 64% of U.K. businesses. The U.K. network is linked into the wider Global Crossing network that connects more than 300 major cities and 30 countries worldwide, and delivers services to more than 600 cities, 60 countries and 6 continents around the globe. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil, and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed USUS$25,511,000,000 in total assets and USUS$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet reflected a US$131 million stockholders' deficit. At June 30, 2006, the company reported US$1.87 billion in total assets and US$1.95 billion in total liabilities, resulting to a stockholders' deficit of US$86 million. It also reported a US$173 million stockholders' deficit on Dec. 31, 2005. * * * As reported in the TCR-Europe on Aug. 30, Moody's Investors Service upgraded the corporate family rating of Global Crossing (U.K.) Telecommunications Ltd. to B3 from Caa1. Concurrently, Moody's upgraded to B3 from Caa1 the ratings on the senior secured notes issued by Global Crossing (U.K.) Finance Plc. Moody's said the outlook for all ratings is stable. As reported in the TCR-Europe on Aug. 3, Standard & Poor's Ratings Services affirmed its corporate credit rating on Global Crossing (U.K.) Telecommunications Ltd. (GCUK), the parent company of Global Crossing (U.K.) Finance PLC. S&P said the outlook is stable. At the same time, the 'B-' senior secured debt rating and recovery rating of '5' on the US$200 million notes and the GBP105 million notes issued by related entity Global Crossing (U.K.) Finance PLC were affirmed. Both issues are guaranteed by GCUK. GLOBAL CROSSING: Moody's Rates Proposed Debt Issue at (P)B3 ----------------------------------------------------------- Moody's Investors Service assigned a provisional (P)B3 rating with stable outlook to the proposed GBP52-million issuance of senior secured notes by Global Crossing (U.K.) Finance PLC, a finance subsidiary of Global Crossing (U.K.) Telecommunications Ltd., in conjunction with affirming the existing ratings. The issuance is in line with the expectations factored into the GCUK rating upgrades in August 2006. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive rating to the securities. A definitive rating may differ from a provisional rating. The new notes will be issued under the indenture, dated as of December 23, 2004, pursuant to which GCUK Finance issued its dollar-denominated 10.75% Senior Secured Notes due 2014 and its sterling-denominated 11.75% Senior Secured Notes due 2014. They will be guaranteed on a senior basis by GCUK and Fibernet, and will be secured by certain assets of the guarantors and a security assignment of the inter-company loan from GCUK Finance to GCUK. The new notes will be used to finance the acquisition of Fibernet, a provider of specialist telecommunications networks to large enterprises and other telecommunications companies, from GC Acquisitions Limited, the initial Global Crossing acquirer. Moody's views the acquisition of Fibernet as neutral to marginally positive for GCUK, given that, despite a limited deterioration in the pro forma credit metrics, it is expected that Fibernet will strengthen GCUK's business risk profile, diversify its revenues and customer base, and improve its revenue growth prospects, while integration risk is expected to be limited due to Fibernet's reliance on GCUK for around 60% of its core network. Domiciled in London, Global Crossing (U.K.) Telecommunications Ltd is one of the leading U.K. providers of managed network communications services. It is an indirect, wholly owned subsidiary, and the principal U.K. telecommunications business, of Global Crossing Ltd. GCUK operates the most extensive fibre optic network in the U.K. after BT and Cable & Wireless. In the financial year 2005, GCUK generated revenues of GBP239 million, EBITDA of GBP65 million (amounting to an EBITDA margin of 27.3%) and net cash provided from operating activities less capital expenditure of GBP28.2 million. GLOBAL CROSSING: S&P Assigns B- Rating on GBP52-Million Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' long-term debt rating to the GBP52 million senior secured notes, due December 2014, issued by Global Crossing (U.K.) Finance PLC. The notes are guaranteed by Global Crossing (U.K.) Telecommunications Ltd., and Fibernet Group Ltd. At the same time, Standard & Poor's assigned a recovery rating of '5' to the notes, reflecting our expectation of negligible recovery (0%-25%) of principal in the event of a payment default. The 'B-' long-term debt rating and recovery rating of '5' on GCF's existing GBP208-million equivalent senior secured notes, due 2014, remain unchanged. The proceeds of the new notes will be used by GCUK to finance the acquisition of Fibernet, which was completed in October 2006. Following issuance of the notes, Fibernet will be wholly owned by GCUK. The notes will substitute the original bridge loan originally used by GCL to finance the acquisition. Fibernet provides corporate telecoms services through its national and metropolitan networks in the U.K. Standard & Poor's regards its acquisition as broadly neutral for GCUK's credit quality under the current terms of the transaction. The ratings on GCUK are constrained by: -- a highly competitive market, resulting in continuing pricing pressure; -- overcapacity; and -- the commoditization of bandwidth services. "The ratings are also constrained by high customer concentration, with 48% of GCUK revenues coming from five clients in 2005," said Standard & Poor's credit analyst Karim Nadji. The ratings are supported by: positive FOCF generation; recurrent core sales derived from managed voice and data services that are integral to customer operations; and a creditworthy customer base. "GCUK also benefits from an extensive Internet protocol-ready fiber-optic network in the U.K., that requires moderate capital expenditure, and from the U.K.'s positive regulatory environment," said Mr. Nadji. At Sept. 30, 2006, pro forma for the notes, total debt at GCUK had increased to GBP372 million and EBITDA for the previous 12 months (LTM EBITDA; adjusted for operating leases) had increased to GBP80 million -- resulting in a lease-adjusted total debt to LTM EBITDA ratio of 4.6x (4.0x unadjusted) compared with 4.4x prior to the Fibernet acquisition. GLOBAL SILICON: Appoints Administrators from Geoffrey Martin ------------------------------------------------------------ Stephen Goderski and Geoffrey Martin of Geoffrey Martin & Co. were appointed joint administrators of Global Silicon Ltd. (Company Number 03456323) on Dec. 6. The administrators can be reached at: Stephen Goderski and Geoffrey Martin Geoffrey Martin & Co. 7-8 Conduit Street London W1S 2XF United Kingdom Tel: 020 7495 1100 Fax: 020 7495 1144 E-mail: stephen.goderski@geoffreymartin.co.uk Global Silicon Ltd. can be reached at: Alexander House Mere Park Dedmere Road Marlow Buckinghamshire SL7 1FX United Kingdom Tel: 0870 730 8888 Fax: 0162 847 7754 GRANT INFORMATION: Taps Joint Administrators from Tenon Recovery ---------------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint administrators of Grant Information Service Ltd. (Company Number 5566263) on Dec. 5. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Grant Information Service Ltd. can be reached at: Chandlers Way Temple Farm Industrial Estate Southend on Sea Essex SS2 5SE United Kingdom Tel: 01702 307 695 GREAT NORTHERN: Gov't. Invites Bidders for East Coast Franchise --------------------------------------------------------------- The U.K. government has invited participants to bid for Great North Eastern Railways's franchise on the main London to Edinburgh route, BBC News reports. As reported in the TCR-Europe on Dec. 11, the government decided to end GNER's GBP1.3-billion franchise agreement to operate the East Coast main line railway. A GNER spokesman told BBC that the company, or its bankrupt parent, Sea Containers Ltd., is likely to bid for the contract. Other possible bidders, analysts say, could include First Group and Virgin Trains. As previously reported, the U.K. Department of Transport temporarily authorized GNER to run the East Coast main line railway for up to two years on a new, fixed management-contract basis, as a temporary solution. In 1996, Sea Containers entered into a franchise agreement with the Strategic Rail Authority of the British Government to operate the GNER carrying passengers on high-speed trains along the East Coast main line in Great Britain, United Kingdom. Sea Containers and the Transport Department entered into a new 10- year contract in April 2005, under which the Debtor agreed to pay the British Government GBP1.3 billion over the course of the franchise. London-based The Times said GNER is reportedly close to breaching the liquidity ratio legally required to its franchise agreement. Robert Mackenzie, Sea Containers CEO & GNER chairman, asserts that the rail company did not breach its franchise agreement. It would be, however, unable to meet payments that were due to start in May, BBC relates. Some rail operators have expressed difficulty in turning in profits because of the government's high revenue expectations, BBC relates. According to the report, GNER was unable to meet a 10% revenue growth requirement in 2005, stipulated under the terms of its franchise agreement. 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. Headquartered in London, United Kingdom -- Great North Eastern Railway (GNER) Limited -- http://www.gner.co.uk/-- operates high-speed express train services on the East Coast Main Line. Most of their trains run between London King's Cross and either Edinburgh Waverley or Leeds. HART LANE: Brings In Grant Thornton to Administer Assets -------------------------------------------------------- Andrew Hosking and Martin Ellis of Grant Thornton U.K. LLP were appointed joint administrators of Hart Lane Estate Agents Ltd. (Company Number 05370094) on Dec. 1. 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. Hart Lane Estate Agents Ltd. can be reached at: 3 Church Road Croydon Surrey CR0 1SG United Kingdom Tel: 020 7383 5100 HB CONSTRUCTION: Appoints Administrators from DTE Leonard --------------------------------------------------------- A. Poxon and J. M. Titley of DTE Leonard Curtis were appointed joint administrators of HB Construction (North West) Ltd. (Company Number 05222753) on Dec. 6. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. HB Construction (North West) Ltd. can be reached at: 18 Scrimshaw Drive Stoke-on-Trent Staffordshire ST6 7PX United Kingdom Tel: 01782 824 361 KAMROK LIMITED: Brings In Kroll Ltd to Administer Assets -------------------------------------------------------- S. Wilson and P. F. Duffy of Kroll Ltd. were appointed joint administrators of Kamrok Ltd. (Company Number 03737477) on Dec. 5. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Kamrok Ltd. can be reached at: 18 Berkeley Court Manor Park Runcorn Cheshire WA7 1TQ United Kingdom Tel: 01928 579 773 KONINKLIJKE AHOLD: In Talks with Equity Firms Over USF Unit Sale ---------------------------------------------------------------- Koninklijke Ahold N.V. is holding talks with Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. over the sale of its U.S. Foodservice unit through a leveraged buyout, Henny Sender writes for The Wall Street Journal. Blackstone Group and Texas Pacific Group are also considering a bid for USF, people privy to the matter told WSJ. CDR and KKR's offers would value USF at more than US$5 billion, WSJ suggests. As reported in the TCR-Europe on Nov. 8, Koninklijke Ahold N.V. disclosed of plans and financial targets resulting from its Retail Review. The plans include the divestment of USF, among others. According to Ahold, the plans are designed to accelerate identical sales growth, improve profit returns and strengthen the company's foundation for future expansion, creating additional value for its shareholders. The company said it would retain ownership of the Stop & Shop and Giant supermarket units. Anders Moberg, Chief Executive Officer, told WSJ, "We have the knowledge, the management and I can't see anybody else doing a better job." Private-equity firms, however, also have experience with food distribution companies. CDR acquired Alliant Foodservice from Kraft Foods in 1995 and sold it to U.S. Foodservice in 2001 and earned nearly six times its investment. Ahold had been subject of takeover and merger speculations, with private equity firms hovering around the company, WSJ relays. Ahold denied it was for sale, stressing that it was large enough to survive. According to WSJ, the company's market value is around US$16.7 billion and around 74% of its sales are in the U.S. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. LOGIC SYSTEMS: Creditors' Meeting Slated for December 22 -------------------------------------------------------- Creditors of Logic Systems Management Ltd. (Company Number 03549166) will meet at 11:00 a.m. on Dec. 22 at: Alexander Lawson Jacobs 1 Kings Avenue Winchmore Hill London N21 3NA 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. 21 at: Ninos Koumettou Administrator Alexander Lawson Jacobs 1 Kings Avenue Winchmore Hill London EC1V 2NJ United Kingdom Tel: 0845 260 0590 MCCOLLIN SMITH: Calls In Liquidator from CRG Insolvency ------------------------------------------------------- Charles Howard Ranby-Gorwood of CRG Insolvency & Financial Recovery was appointed Liquidator of McCollin Smith Limited on Dec. 8 for the creditors' voluntary winding-up proceeding. The company can be reached at: McCollin Smith Limited Harrier Road Humber Bridge Industrial Estate Barton Upon Humber South Humberside DN185RP United Kingdom Tel: 01652 661 617 MILLS PLUMBING: Taps Liquidator from Wilkinson & Co. ---------------------------------------------------- Andrew Hartley Wilkinson of Wilkinson & Co. was appointed Liquidator of Mills Plumbing Limited on Dec. 8 for the creditors' voluntary winding-up procedure. The company can be reached at: Mills Plumbing Limited 315 Blackmoorfoot Road Huddersfield West Yorkshire HD4 5RA United Kingdom Tel: 014 8432 7859 MOTION ENGINEERING: Appoints Robert Gibbons as Liquidator --------------------------------------------------------- Robert Gibbons of Arrans was appointed Liquidator of Motion Engineering Limited on Dec. 7 for the creditors' voluntary winding-up procedure. The company can be reached at: Motion Engineering Limited Unit 34 Amington Industrial Estate Sandy Way Tamworth Staffordshire B77 4DS United Kingdom Tel: 01827 660 47 MUSIC CREATION: Appoints Clair Dwyer as Administrator ----------------------------------------------------- Claire L. Dwyer of Jones Lowndes Dwyer LLP was appointed administrator of Music Creation Corp. (Community Initiatives) Ltd. (Company Number 05048550) on Dec. 7. The administrator can be reached at: Claire L. Dwyer Jones Lowndes Dwyer LLP 4 The Stables Wilmslow Road Didsbury Manchester M20 5PG United Kingdom Tel: 0161 832 9454 Fax: 0161 832 9455 E-mail: clairedwyer@joneslowndesdwyer.co.uk Headquartered in Hyde, England, Music Creation Corp. (Community Initiatives) Ltd. is a community-recording studio. OPTIMUM NATIONWIDE: Brings In Menzies as Joint Administrators ------------------------------------------------------------- Andrew Gordon Stoneman and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of Optimum Nationwide Ltd. (Company Number 05544885) on Dec. 6. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. Optimum Nationwide Ltd. can be reached at: 7 Shirwell Crescent Furzton Milton Keynes Buckinghamshire MK4 1GA United Kingdom Tel: 01908 506 619 OSLO REINSURANCE: Meetings of Scheme Creditors Set Feb. 12, 2007 ---------------------------------------------------------------- The High Court of Justice ordered that meetings of Scheme Creditors of Oslo Reinsurance Company (U.K.) Limited and Oslo Reinsurance Company ASA be convened at 11:00 a.m. (U.K. time) on Feb. 12, 2007, at: KPMG LLP 1-2 Dorset Rise London EC4Y 8EN United Kingdom to consider whether to approve or reject a scheme of arrangement to be proposed to be made between the Scheme Companies and Scheme Creditors. The Court ordered Oslo Re ASA to convene a single meeting of its Scheme Creditors to vote on its Scheme. The Court also ordered Oslo Re U.K. to convene two meetings of its Scheme Creditors: -- a meeting of Scheme Creditors in relation to their claim other than Incurred But Not Reported (IBNR) claims; and -- a meeting of Scheme Creditors in relation to their IBNR claims. Scheme creditors who have claims falling into both of these classes will be able to vote in each meeting. The Scheme includes business written under the former names of the Scheme Companies and business that gas been transferred into the Scheme Companies. The business included in the Scheme was written by various companies within the Storebrand, Polaris and Norgen groups. Copies of the Scheme Document, Forms of Proxy and Voting Forms are available at http://www.oslore.no/ The Scheme Managers can be reached at: Jan C. H. Endresen and Bjorn Morten Skordal Oslo Reinsurance Company ASA P.O. Box 1753 Vika. N-0122 Oslo, Norway Tel: +47 22 31 59 86 +47 22 31 28 91 Fax: +47 22 31 29 74 +47 22 31 29 00 E-mail: scheme.inquiries@oslore.no PARADISE FENCING: Hires John C. Moran to Liquidate Assets --------------------------------------------------------- John C. Moran of Parkin S. Booth & Co. was appointed Liquidator of Paradise Fencing Limited on Nov. 30 for the creditors' voluntary winding-up procedure. The company can be reached at: Paradise Fencing Limited Parkfield Farm Park Lane Wirral Merseyside CH478XT United Kingdom Tel: 0151 632 3800 Fax: 0151 632 3800 PARTYGAMING PLC: Slashes 41% Jobs After U.S. Business Shutdown -------------------------------------------------------------- Partygaming PLC eliminated 41% of its work force after it closed down its core U.S. operations on Oct. 31, Lilly Vitorovich writes for the Wall Street Journal. In addition to the job cuts, which affected 945 employees, two non-executive directors, Brian Larcombe and Nigel Kenny, expressed their intention to retire from the board effective Dec. 31. Excluding sports betting, gross daily revenue in the last four weeks of trading to Dec. 11, 2006, has averaged approximately US$921,000 per day and overall player volumes have averaged approximately 52,000 active players per day. Gross daily poker revenues are averaging US$721,000 per day, having hit a low of US$637,000 per day after the Act was passed, reflecting the loss of a number of higher-raking non-U.S. players to privately owned poker sites that are continuing to offer games to customers in America and therefore, at certain times of the day, may have higher levels of player liquidity. "The Group's most important market is now Europe, Middle East and Africa, representing approximately 80% of total new player sign-ups and 67% of total gross daily revenue," the company said in a statement. "The Americas, which includes Canada, Latin America and South America, account for approximately 15% of total new player sign-ups and 27% of total gross daily revenue. Asia Pacific remains a relatively small contributor to total revenue." As at Nov. 30, 2005, the Group had total net cash (cash less interest bearing bank debt and overdrafts) of over US$46 million. About PartyGaming Headquartered in Gibraltar, United Kingdom, PartyGaming Plc -- http://www.partygaming.com/-- engages in online gaming business and owns and operates PartyPoker.com, the world's largest online poker room. The Group is also the world's largest online casino and operates PartyCasino.com and StarluckCasino Online. In addition, the Group offers online bingo through PartyBingo.com, online backgammon through PartyGammon.com, and non-US facing sports betting through Gamebookers.com. At June 30, 2006, the company's balance sheet showed US$91.5 million in unaudited positive equity, after reporting a US$45.9 million stockholders' deficit at Dec. 31, 2005. On Oct. 13, PartyGaming suspended all real money gaming activities to customers located in the U.S. after U.S. President George W. Bush signed the Safe Port Act into law. PERFECT PANES: Names Richard Rones Liquidator --------------------------------------------- Richard Rones of ThontonRones LLP was appointed Liquidator of Perfect Panes Windows Limited on Nov. 28 for the creditors' voluntary winding-up proceeding. The company can be reached at: Perfect Panes Windows Limited Unit 14 Beddington Trading Estate Bath House Road Croydon Surrey CR0 4TT United Kingdom Tel: 0800 074 5543 SCIENS CFO I: Fitch Gives BB+ Rating on EUR7.8-Mln Class E Notes ---------------------------------------------------------------- Fitch Ratings rates Sciens CFO I Ltd., which closed Dec. 14, 2006: -- EUR121.2 million class A floating-rate due 2014 AAA; -- EUR21 million class B floating-rate due 2014 AA; -- EUR13.9 million class C floating-rate due 2014 A; -- EUR18.6 million class D floating-rate due 2014 BBB+; and -- EUR7.8 million class E floating-rate due 2014 BB+. The rating of the class A notes addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date. The ratings of the classes B, C, D and E notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date. The ratings are based on the quality of the investments, as well as the credit enhancement provided by support from the junior notes, the excess spread and the protections incorporated within the structure. Sciens CFO I is a market value collateralized fund obligation. The collateral pool will consist of shares issued by Sciens CFO I Feeder Fund Ltd, which in turn is a fund collateralized by among others, shares issued by Sciens Global Opportunity Fund. The issuance proceeds will be used to purchase interests in hedge funds through the Sciens CFO I Feeder Fund. The Sciens CFO I Feeder Fund is managed by a collateral manager who will assume management and advisory roles in the transaction. The fund is essentially a fund of funds and as such will invest proceeds subject to certain limits, such as maximum exposure to one single fund of 5%, maximum exposure to one manager of 5%, and a minimum of six diversified strategies at any time. Sciens CFO I is a limited-liability, special-purpose vehicle incorporated under the laws of Channel Island, whose sole purpose is to acquire SCFO FF shares as collateral from the issuance proceeds of senior floating-rate notes and junior notes. The senior floating notes are rated notes comprising classes A, B, C, D and E notes. The rated notes accrue interest at the rate of European Interbank Offered Rate plus 0.40%, 0.75%, 1.30%, 2.30%, and 4.75% in respective order. Investors in the rated notes will receive semi-annual interest payments, while holders of the junior notes will receive cash distributions once the junior distribution condition is satisfied. Interest and principal payments will be met out of disposal proceeds from the sale of the SCFO FF shares. No principal will be paid on the notes during first five years except in case of any adverse event. During the 'issuer call period', starting in February 2012, and following an optional redemption, the collateral manager will arrange for the redemption of SCFO FF shares on each payment date. The issuer's liabilities will be reimbursed sequentially from amounts received. The collateral manager will ensure availability of necessary funds by either delivering a liquidity facility request if available or selling the requisite number of SCFO FF shares to cover the amounts due. Sciens CFO I Management Ltd. will act as investment manager to Sciens CFO I and SCFO FF. It is an affiliate of Sciens Capital Management, LLC, led by John P. Rigas who is the chairman and CEO. Sciens Capital Management is a diversified alternative asset management firm headquartered in New York. Mr. Rigas directs portfolio construction, investment research, fund operation and risk management activities. Robert J. Delany is CFO of the Sciens fund of hedge funds. He is responsible for financial management, risk management modeling, treasury, accounting, internal and external reporting, audit, tax and general operations. Sciens investors include financial institutions, high net worth individuals, family offices, private banks, foundations, endowments and pension funds. Sciens group has approximately US$900 million under management. SEA CONTAINERS: Gov't. Invites Bidders for GNER's Franchise ----------------------------------------------------------- The U.K. government has invited participants to bid for Great North Eastern Railways's franchise on the main London to Edinburgh route, BBC News reports. As reported in the TCR-Europe on Dec. 11, the government decided to end GNER's GBP1.3-billion franchise agreement to operate the East Coast main line railway. A GNER spokesman told BBC that the company, or its bankrupt parent, Sea Containers Ltd., is likely to bid for the contract. Other possible bidders, analysts say, could include First Group and Virgin Trains. As previously reported, the U.K. Department of Transport temporarily authorized GNER to run the East Coast main line railway for up to two years on a new, fixed management-contract basis, as a temporary solution. In 1996, Sea Containers entered into a franchise agreement with the Strategic Rail Authority of the British Government to operate the GNER carrying passengers on high-speed trains along the East Coast main line in Great Britain, United Kingdom. Sea Containers and the Transport Department entered into a new 10- year contract in April 2005, under which the Debtor agreed to pay the British Government GBP1.3 billion over the course of the franchise. London-based The Times said GNER is reportedly close to breaching the liquidity ratio legally required to its franchise agreement. Robert Mackenzie, Sea Containers CEO & GNER chairman, asserts that the rail company did not breach its franchise agreement. It would be, however, unable to meet payments that were due to start in May, BBC relates. Some rail operators have expressed difficulty in turning in profits because of the government's high revenue expectations, BBC relates. According to the report, GNER was unable to meet a 10% revenue growth requirement in 2005, stipulated under the terms of its franchise agreement. Headquartered in London, United Kingdom -- Great North Eastern Railway (GNER) Limited -- http://www.gner.co.uk/-- operates high-speed express train services on the East Coast Main Line. Most of their trains run between London King's Cross and either Edinburgh Waverley or Leeds. 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. SEVERSTAL OAO: Keeps Free Float at Current Level; Won't Increase ---------------------------------------------------------------- OAO Severstal will not increase its shares available to the investing public, RosBsuinessConsulting reports citing company Chief Executive Alexei Mordashov. According to RBC, Mr. Mordashov revealed that Severstal's free float is around 18% of its total stock. More than half of the free float shares are traded on the London Stock Exchange. Mr. Mordashov added that the company's free float is at the same level as other metallurgical companies', RBC relates. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. As of Dec. 31, 2005, Severstal had US$10.75 billion in total assets, US$3.66 billion in total liabilities and US$7.09 billion in total shareholders' equity. * * * On Oct. 10, Moody's Investors Service rates Severstal's senior unsecured debt at B1 and and long-term corporate family rating at Ba3. ON July 26, Standard & Poor's Ratings Services rated the company's issuer credit at BB-. As reported in the TCR-Europe on June 28, Fitch Ratings maintained the Rating Watch Positive status for OAO Severstal's ratings of Issuer Default BB-, senior unsecured BB-, Short-term B and National Long-term A+. STUDIO 1: Claims Filing Period Ends Feb. 28, 2007 ------------------------------------------------- Creditors of Studio 1 Limited have until Feb. 28, 2007, to send their names and addresses, together with particulars of their debts or claims, and names and addresses of their Solicitors, if any, to appointed Liquidator Philip John Gorman at: Hazlewoods LLP Windsor House Barnett Way Barnwood GL4 3RT United Kingdom The company can be reached at: Studio 1 Limited H T V Ltd Media Centre Culverhouse Cross Cardiff CF5 6XJ United Kingdom Tel: 029 2059 0104 Fax: 029 2059 0502 TOTALLY MG: Brings In Liquidators from Jacksons Jolliffe Cork ------------------------------------------------------------- Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork were appointed Joint Liquidators of Totally MG Limited on Dec. 5 for the creditors' voluntary winding-up proceeding. The company can be reached at: Totally MG Limited 75 Primley Park Road Leeds West Yorkshire LS177HR United Kingdom Tel: 0113 307 0007 YEW TREE: Calls In Liquidators from Recovery hjs ------------------------------------------------ Gordon Johnston and Shane Biddlecombe of Recovery hjs were appointed Joint Liquidators of Yew Tree Car Sales Limited on Dec. 8 for the creditors' voluntary winding-up procedure proceeding. Headquartered in Southampton, England, Yew Tree Car Sales Limited -- http://www.yewtreecars.com/-- offers a comprehensive caravan service and a car valeting service. The company also provides MOT testing service for cars, vans and minibuses, which seat up to 16 passengers. * Fried Frank Opens Offices in Hong Kong & Adds Nine Partners ------------------------------------------------------------- Fried, Frank, Harris, Shriver & Jacobson LLP has launched its office in Hong Kong, in association with local Hong Kong law firm Huen Wong & Co. Fried Frank's office in Hong Kong will provide clients with access to the firm's U.S., European and international expertise in M&A, private equity, capital markets, finance, real estate and litigation, working in combination with Huen Wong & Co.'s M&A, capital markets, real estate and litigation practices. The firm discloses that Huen Wong, Michael M. Hickman, Raymond Kwok, Victoria Lloyd, and Liang Tsui have joined Fried Frank as partners, and that Stephen Mok, Philip T. Nunn, Joseph Lee and Gilbert Ho will be joining as partners in early 2007. "Asia is very important for the firm's international growth plans and Fried Frank's strength and depth of expertise across a range of practices will provide a strong platform in the region," said Valerie Ford Jacob, Fried Frank's Chairperson. "Fried Frank is very effective at combining well-configured international expertise together with local law capability. The addition of this team, with strong relationships in China, provides us with an opportunity to capitalize on the growing demands from our existing clients as well as forge new relationships throughout Asia," said Justin Spendlove, the firm's Managing Partner. "I am looking forward to working with Fried Frank, a market leader both in the US and Europe. As someone who has observed Fried Frank's impressive growth in the international arena over the past several years, I am pleased to partner with a firm with such momentum behind it. I am excited by the prospect of extending that leadership position to Hong Kong as well as throughout Asia," said Huen Wong. Fried Frank has had an international presence since 1970 when it became one of the first U.S. firms to open an office in London. Over the past 18 months Fried Frank has doubled the size of its European practice in London, Paris and Frankfurt. With the addition of the new lawyers in Asia, Fried Frank will have approximately 120 lawyers in its offices outside of the U.S. In 2006, the firm advised on some of the most noteworthy matters of the year including the US$67 billion ATT-BellSouth merger, the Silver Point acquisition of CF Gomma Barre Thomas, and the formation of the largest European private equity fund, Permira IV. New Partners Huen Wong has extensive knowledge of PRC law and practice. His particular experience covers a broad range of fields such as joint ventures, securities, licensing, building and construction projects and arbitration both in Hong Kong and the region, particularly in China. Mr. Wong is a China-appointed Attesting Officer and is on the panel of foreign arbitrators for CIETAC and the Arbitration Commissions in Beijing, Shanghai and Dalian. He is admitted as a solicitor in England, Wales, Hong Kong, Singapore and Australian Capital Territory. He joins Fried Frank from Simmons & Simmons where he was managing partner for the China region with responsibility for both the Hong Kong and Shanghai offices. Michael M. Hickman has a wealth of experience in joint ventures, corporate reorganization, and mergers and acquisitions, including assisting major U.S.-based private equity investors with investments in a range of targeted industry sectors. He also has extensive experience in privatizations and commercial and corporate finance transactions. Fluent in Mandarin and English, he has lived and worked in Asia for over 20 years and is admitted to practice law in New York. He joins Fried Frank from Simmons & Simmons where he was resident partner of the Simmons & Simmons Shanghai office. Raymond Kwok is one of Asia's leading real estate practitioners, and has extensive expertise across a broad range of property and property-related matters in Hong Kong and China. He focuses his practice in real estate and infrastructure development, acquisitions and disposals, property litigation, property financing, planning and project conveyancing. He has been advising on China-related matters for 17 years and is a China- Appointed Attesting Officer. Mr. Kwok is admitted to practice law in England, Wales and Hong Kong. He joins Fried Frank from Simmons & Simmons. Victoria Lloyd advises corporations and investment banks on a wide range of corporate and commercial, corporate finance and merger and acquisition matters, including funding raising activities, international securities offerings and joint ventures. She is fluent in Cantonese, Mandarin and English. She is qualified as a solicitor in Hong Kong, England and Wales. She joins Fried Frank from Simmons & Simmons. Liang Tsui has extensive experience in advising multi-nationals on foreign direct investment and M&A transactions in China. He has worked with a number of global clients who are active in the Chinese market in the chemical, automotive, financial services, insurance, manufacturing and construction sectors and has acted for a number of US, UK, Swiss and French companies on major corporate restructuring, investment and joint venture projects. He speaks fluent Mandarin and English. He is qualified to practice law in the US. He joins Fried Frank from Simmons & Simmons. Stephen Mok focuses his practice on mergers and acquisitions and corporate finance, and has extensive experience with initial public offerings on the Hong Kong Stock Exchange. His experience also encompasses PRC securities transactions, joint ventures, cross-border mergers and acquisitions and general commercial work. He is admitted to practice as a solicitor in New South Wales, Australia, in England, Wales and Hong Kong. He joins Fried Frank from Simmons & Simmons where he was head of the China corporate group. Philip T. Nunn has 30 years' experience in development and construction matters. Over this period, he has handled a large number of major construction litigation and arbitration cases and has significant experience as an arbitrator. He is a member of the HKIAC Panel of Arbitrators, a member of the CIETAC Panel of Arbitrators and the Korean Commercial Arbitration Board Panel of Arbitrators, Chairman of the ICC Arbitration Committee in Hong Kong, a member of the Hong Kong Housing Authority, a member of the Strategic Planning Committee of the Housing Authority, Chairman of the Building Committee of the Housing Authority, a member of the Property Committee of the Kowloon-Canton Railway Corporation, and Co-chairman of the Appeal Tribunal (Buildings). He is admitted to practice law in England, Wales and Hong Kong. He joins Fried Frank from Simmons & Simmons. Joseph Lee focuses his practice on corporate finance and securities transactions, with a special emphasis on initial public offerings relating to Hong Kong and Chinese companies and mergers and acquisitions of listed and private companies. He speaks fluent English, Cantonese and Mandarin. He is admitted to practice as a solicitor in Hong Kong and as a barrister and solicitor in British Columbia, Canada. He joins Fried Frank from Simmons & Simmons. Gilbert Ho focuses his practice on corporate finance, equity capital markets in Hong Kong and China, mergers and acquisitions and general commercial transactions. He speaks fluent English, Cantonese and Mandarin. He is admitted to practice as a solicitor in England and Wales and as a barrister and solicitor in New South Wales, Australia. He joins Fried Frank from Simmons & Simmons. About Fried Frank Fried, Frank, Harris, Shriver & Jacobson LLP -- http://www.friedfrank.com/-- is an international law firm with more than 550 attorneys in offices in New York, Washington, D.C., London, Paris and Frankfurt. Fried Frank lawyers regularly represent major investment banking firms, private equity houses and hedge funds, as well as many of the largest companies in the world. The firm offers legal counsel on M&A and corporate finance matters, white-collar criminal defense and civil litigation, securities regulation, compliance and enforcement, government contracts, real estate, tax, bankruptcy, antitrust, benefits and compensation, intellectual property and technology, international trade, and trusts and estates. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 293 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Dollfus Mieg & Cie S.A. DS (16) 143 (45) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (10) 120 (5) Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 Rhodia S.A. RHA (788) 6,681 171 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Selcodis S.A. SPVX (18) 128 22 Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (174) 3,003 606 Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Plambeck Neue Energien AG PNE3 (4) 141 19 Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) GREECE ------ Empedos S.A. EMPED (34) 175 (48) Pouliadis Associates Corporation POUL (28) 124 (31) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- Exbus Asset Management Nyrt. EXBUS (30) 118 (5,162) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) Wind Telecomunicazioni S.p.A. (10) 12,698 (815) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) Vista Alegre Atlantis SGPS S.A. VAAAE (18) 193 (83) ROMANIA ------- Oltchim RM Valce OLT (45) 232 (321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (185) 378 (11,107) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (10) 134 (37) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dnepropetrovsk Metallurgical Plant Imeni Petrovsko (2) 278 (509) Dniprooblenergo (38) 478 (797) Donetskoblenergo (166) 706 (1,320) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker Plc ANK.L (22) 115 13 Atkins (WS) Plc ATK (63) 1,279 70 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,264) 2,818 (253) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (4) 948 (175) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (1,031) 3,875 494 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Farner Plc PFL (33) 964 127 Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (490) 155 (80) Wincanton Plc WIN (66) 1,236 (71) ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *