/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070108.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, January 8, 2007, Vol. 8, No. 5 Headlines A U S T R I A AMERICAN ROADHOUSE: Creditors' Meeting Slate for January 18 ARBEITSSCHUTZARTIKEL - VERTRIEB: Meeting Slated for January 16 ASB BAU: Graz Court Orders Business Shutdown AUSSEN & INNEN: Vienna Court Orders Business Shutdown CREAMED LLC: Claims Registration Period Ends January 23 CREATRONIC AUTOMATION: Creditors' Meeting Slated for January 18 EAV ELEKTRO: Claims Registration Period Ends January 23 H. KONHAUSNER: Creditors' Meeting Slated for January 22 SEITZ BAU: Creditors' Meeting Slated for January 11 USKANA-BAUUNTERNEHMEN: Creditors' Meeting Slated for January 18 B U L G A R I A FIRST INVESTMENT: S&P Affirms B+ Counterparty Credit Rating C Y P R U S BANK OF CYPRUS: Issues 3,127,833 New Ordinary Shares F R A N C E ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp. CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2 G E R M A N Y AEP ENERGIEPLAN: Claims Registration Ends January 16 BGR WOHNUNGS: Claims Registration Ends January 15 DAIMLERCHRYSLER AG: Insurers Agree to Repay EUR168 Million GREDNER STAHLBAU: Claims Registration Ends January 12 IBIS ACAM: Claims Registration Ends January 14 K O L Z GMBH: Claims Registration Ends January 12 PEQA PERSONALENTWICKLUNGSCENTER: Meeting Slated for January 18 SLS MUSIK: Claims Registration Ends January 12 SPORT-PROESTLER: Claims Registration Ends January 12 V+S BAUEN: Claims Registration Ends January 15 WILFRIED STANGE: Claims Registration Ends January 15 G R E E C E EGNATIA BANK: Quarterly Interest Period Begins Jan. 1 EGNATIA BANK: Shares Begin Trading on the ATHEX After Conversion TECHNICAL OLYMPIC: Board Names New Executive Vice Presidents I R E L A N D AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7 CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp. CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2 I T A L Y PARMALAT SPA: Court Orders CEO to Return OCC Documents to BofA PARMALAT SPA: Italy's State Council Quashes Lower Court's Ruling K A Z A K H S T A N ATYRAU TRADING: Creditors Must File Claims by February 13 AY STROYSERVICE LLP: Claims Filing Period Ends February 9 GAVRINO LLP: Proof of Claim Deadline Slated for February 8 KAINAR-KUS JSC: Claims Registration Ends February 13 JAKSY-2003 LLP: Creditors Must File Claims by February 8 JANIBEK LLP: Proof of Claim Deadline Slated for February 8 KELESHEK LLP: Creditors' Claims Due February 9 LOGIKA LLP: Creditors Must File Claims by February 8 PROMSPETSAUTOMATIKA OJSC: Creditors' Claims Due February 13 RAUSHAN LLP: Claims Filing Period Ends February 9 RIA JAM: Almaty Court Begins Bankruptcy Proceedings SARY-ARKA: Proof of Claim Deadline Slated for Febraury 9 STRAITS OFFSHORE: Creditors' Claims Due February 13 TEMIRZHOLY LOGISTIC: Karaganda Court Starts Bankruptcy Procedure VOLVOX INVEST: Proof of Claim Deadline Slated for Feb. 13 K Y R G Y Z S T A N KYRGYZKOMUR CORP: Creditors' Meeting Slated for Jan. 10 L U X E M B O U R G NOVELIS INC: Appoints Edward Blechschmidt as Chief Executive N E T H E R L A N D S GLOBAL POWER: Wants General Claims Bar Date Set for April 18 GLOBAL POWER: Equity Panel Hires Houlihan Lokey as Fin'l Advisor PLAYLOGIC ENT: Sept. 30 Balance Sheet Upside-Down by US$7.4 Mln N O R W A Y FINANCE CREDIT: Auditor Convicted for Negligent Accounting P O L A N D AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7 GETIN FINANCE: Fitch Assigns BB Rating on US$100-Mln Bond Issue R O M A N I A ARDAF SA: Shareholders to Elect New Board on Feb. 7 R U S S I A ELDORADO-WOOD LLC: Court Names T. Evdokimova to Manage Assets FEDOROVSKOYE-IZHORA OJSC: Names K. Koloskov to Manage Assets FUEL-TRANSPORT COMPANY: Court Names V. Murin to Manage Assets GREVI CJSC: Bankruptcy Hearing Slated for February 8 KALITVA-BUILDING-MATERIALS LLC: Court Hearing Set for March 19 KLETSKAYA AGRICULTURAL: Court Names S. Pavlish to Manage Assets OKTYABRSKIY FACTORY: Court Names R. Baykov as Insolvency Manager PETROVSKIY: Court Names O. Shatalova as Insolvency Manager PODPOROZHSKIY COMPLEX: Court Names V. Fedichev to Manage Assets SAVINSKIY CJSC: Court Names O. Novikov as Insolvency Manager SEVERNAYA CJSC: Bankruptcy Hearing Slated for April 30 SEV-RYB-KHOLOD-FLOOT OJSC: Names D. Balakshin to Manage Assets VENEER PRODUCTION-1: Bankruptcy Hearing Slated for March 14 VOLZHSKAYA LEASING: Court Names A. Polyakov to Manage Assets S W I T Z E R L A N D J.H. TRACHSLER: Court Closes Bankruptcy Proceedings PP PINCO: Wallisellen Court Suspends Bankruptcy Proceedings MATOLA JSC: Aussersihl-Zurich Court Closes Bankruptcy Process MERENGUE JSC: Zug Court Starts Bankruptcy Proceedings NOVELIS INC: Appoints Edward Blechschmidt as Chief Executive SAMPEX CAPITAL: Berne Court Suspends Bankruptcy Proceedings STAUFFENEGGER JSC: Court Closes Bankruptcy Proceedings TECHNET JSC: Oerlikon-Zurich Court Suspends Bankruptcy Process TELIO FIX: Embrach Court Closes Bankruptcy Proceedings TRESA LLC: Wadenswil Court Closes Bankruptcy Proceedings WARCRAFT LLC: Berne Court Closes Bankruptcy Proceedings U K R A I N E ENCORE LLC: Creditors Must File Claims by January 18 KURENI TRANS: Creditors Must File Claims by January 18 MIA PODIYA: Creditors Must File Claims by January 18 NTS LLC: Creditors Must File Claims by January 18 PRIMA LOTOS: Creditors Must File Claims by January 18 ROST-MAR LLC: Creditors Must File Claims by January 18 UKRAINIAN INDUSTRIAL: Creditors Must File Claims by January 18 UKRAINIAN SECONDARY: Creditors Must File Claims by January 18 UKRPOLYMERPAK LLC: Creditors Must File Claims by January 18 ZERNOSOYUZ LLC: Creditors Must File Claims by January 18 U N I T E D K I N G D O M ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition COLLINS & AIKMAN: Court Approves Deferral of Interest Payments GREAT NORTHERN: Plans 155 Redundancies to Pay Franchise Fees GREAT NORTHERN: To Appeal Rail Regulator's Open Access Order REFCO INC: Court Approves Settlement with JPMorgan Chase Bank REFCO INC: Files Operating Results Statement for November 2006 SEA CONTAINERS: Wants to Hire Vollman as Special Advisors SEA CONTAINERS: Train Unit Plans 155 Redundancies to Pay Fees SEA CONTAINERS: Train Unit Appeals on Regulator's Access Order SOLUTIA INC: Board Approves Salary Increases for Executives SOLUTIA INC: Calpine Has Until Jan. 22 to Decide on Leases ********* ============= A U S T R I A ============= AMERICAN ROADHOUSE: Creditors' Meeting Slate for January 18 ----------------------------------------------------------- Creditors owed money by LLC American Roadhouse (FN 231353a) are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Feldkirch Hall 45 1st Floor Feldkirch, Austria Headquartered in Koblach, Austria, the Debtor declared bankruptcy on Nov. 3, 2006 (Bankr. Case No. 13 S 50/06t). Markus Walla serves as the court-appointed property manager of the bankrupt estate. Susanne Fink represents Dr. Walla in the bankruptcy proceedings. The property manager can be reached at: Dr. Markus Walla c/o Mag. Susanne Fink Marktstrasse 12 6850 Dornbirn, Austria Tel: 05572/25871 Fax: 05572/25871-2 E-mail: office@fischer-walla-matt.at ARBEITSSCHUTZARTIKEL - VERTRIEB: Meeting Slated for January 16 -------------------------------------------------------------- Creditors owed money by LLC Arbeitsschutzartikel - Vertrieb HOLZER (FN 265472a) are encouraged to attend the creditors' meeting at 9:50 a.m. on Jan. 16 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 2nd Floor (Old Building) St. Poelten, Austria Headquartered in Strengberg, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 14 S 186/06b). Michael Pfleger serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Michael Pfleger Hauptplatz 1/2 3300 Amstetten, Austria Tel: 07472/61 303 Fax: 07472/61 303-50 E-mail: amstetten@lhup.at ASB BAU: Graz Court Orders Business Shutdown -------------------------------------------- The Land Court of Graz entered Nov. 15, 2006, an order shutting down the business of LLC ASB Bau & Montagen (FN 249451s). Court-appointed property manager Norbert Kollerics recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Norbert Kollerics Klosterwiesgasse 61 8010 Graz, Austria Tel: 0316/819291 Fax: 0316/819291-9 E-mail: office@kollerics.at Headquartered in Graz, Austria, the Debtor declared bankruptcy on Nov. 6, 2006 (Bankr. Case No. 40 S 46/06x). AUSSEN & INNEN: Vienna Court Orders Business Shutdown ----------------------------------------------------- The Trade Court of Vienna entered Nov. 13, 2006, an order shutting down the business of LLC Aussen & Innen - Bau (FN 246145d). Court-appointed property manager Kurt Freyler recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Stefan Langer c/o Dr. Hans Rant Seilerstatte 5 1010 Vienna, Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 7, 2006 (Bankr. Case No. 38 S 65/06w). Hans Rant represents Dr. Langer in the bankruptcy proceedings. CREAMED LLC: Claims Registration Period Ends January 23 ------------------------------------------------------- Creditors owed money by LLC Creamed (FN 229445w) have until Jan. 23, to file written proofs of claims to court-appointed property manager Matthias Schmidt at: Dr. Matthias Schmidt Dr. Karl Lueger-Ring 12 1010 Vienna, Austria Tel: 533 16 95 Fax: 535 56 86 Email: schmidt@preslmayr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Feb. 6 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 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 2 S 161/06y). CREATRONIC AUTOMATION: Creditors' Meeting Slated for January 18 --------------------------------------------------------------- Creditors owed money by LLC Creatronic Automation (FN 183466d) are encouraged to attend the creditors' meeting at 10:20 a.m. on Jan. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Wels Hall 101 1st Floor Maria Theresia Str. 12 Wels, Austria Headquartered in Vorchdorf, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 20 S 142/06t). Kurt Dallamassl serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Kurt Dallamassl Marktplatz 14 4810 Gmunden, Austria Tel: 07612/63421 Fax: 07612/70066 E-mail: meingast-dallamassl@eurojuris.at EAV ELEKTRO: Claims Registration Period Ends January 23 ------------------------------------------------------- Creditors owed money by LLC EAV Elektro-Anlagen-Installationen (FN 263521g) have until Jan. 23 to file written proofs of claims to court-appointed property manager Astrid A. Haider at: Mag. Astrid A. Haider c/o Dr. Ute Toifl Tuchlauben 12/20 1010 Vienna, Austria Tel: 535 46 11 Email: haider@thr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 6 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 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 2 S 160/06a). Ute Toifl represents Dr. Haider in the bankruptcy proceedings. H. KONHAUSNER: Creditors' Meeting Slated for January 22 ------------------------------------------------------- Creditors owed money by LLC H. Konhausner Fassaden (FN 175100a) are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 22 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 3 S 151/06k). Karl F. Engelhart serves as the court-appointed property manager of the bankrupt estate. Thomas Engelhart represents Dr. Engelhart in the bankruptcy proceedings. The property manager and his representative can be reached at: Dr. Karl F. Engelhart c/o Dr. Thomas Engelhart Esteplatz 4 1030 Vienna, Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: engelhart@csg.at SEITZ BAU: Creditors' Meeting Slated for January 11 --------------------------------------------------- Creditors owed money by LLC Seitz Bau (FN 257035v) are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 11 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Woellersdorf-Steinabrueckl, Austria, the Debtor declared bankruptcy on Nov. 14, 2006 (Bankr. Case No. 10 S 105/06d). Christian Hajos serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Christian Hajos Hauptstrasse 6 2630 Ternitz, Austria Tel: 02630/33655 Fax: 02630/33655 14 E-mail: office@ra-winkler.at USKANA-BAUUNTERNEHMEN: Creditors' Meeting Slated for January 18 --------------------------------------------------------------- Creditors owed money by LLC Uskana-Bauunternehmen (FN 255764z) are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 15, 2006 (Bankr. Case No. 5 S 151/06z). Thomas Engelhart serves as the court-appointed property manager of the bankrupt estate. Clemens Richter represents Dr. Engelhart in the bankruptcy proceedings. The property manager can be reached at: Dr. Thomas Engelhart c/o Mag. Clemens Richter Esteplatz 4 1030 Vienna, Austria Tel: 712 33 30 Fax: 712 33 30-30 E-mail: engelhart@csg.at =============== B U L G A R I A =============== FIRST INVESTMENT: S&P Affirms B+ Counterparty Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' long-term counterparty credit rating on Bulgaria-based First Investment Bank. The rating was subsequently withdrawn at the bank's request. As a result of the withdrawal, FIB will no longer be subject to Standard & Poor's review. The 'B+' rating on the senior unsecured notes due in 2008, issued through First Investment Finance B.V., will no longer be maintained. =========== C Y P R U S =========== BANK OF CYPRUS: Issues 3,127,833 New Ordinary Shares ---------------------------------------------------- As a result of the reinvestment of dividends paid on Dec. 11, 2006, the Bank of Cyprus Public Company Ltd issued 3,127,833 new ordinary shares of a nominal value of CYP0.50 each. The shares were issued to the shareholders who participated in the Bank's Dividend Reinvestment Plan at a discount of 10% to the weighted average closing price of the share on the Cyprus Stock Exchange and the Athens Exchange during the first five days after the relevant ex-dividend date. The price at which the shares were issued is CYP5.07 (EUR8.75) per share. Following the above issue, the Bank's issued share capital comprises 553,068,307 ordinary shares, of a nominal value of CYP0.50 each. On Dec. 29, 2006, the 3,127,833 new ordinary shares of the bank will be introduced for trading on the Cyprus Stock Exchange and the Athens Exchange. As of Dec. 29, 2006, the opening price of the bank's share on both exchanges will be adjusted according to the regulations of the two exchanges. As of the same date, the new shares will be credited in the Dematerialised Securities System accounts of the beneficiaries who have elected to have their shares registered on the DSS. About Bank of Cyprus Headquartered in Nicosia, Cyprus, Bank of Cyprus -- http://www.bankofcyprus.com/-- offers a wide range of financial products and services, which include banking services in Cyprus, Greece, United Kingdom, Australia and Channel Islands, finance, leasing, factoring, brokerage, fund management, general and life insurance services in Cyprus and Greece, and investment banking services in Cyprus. * * * As reported in the TCR-Europe on Nov. 10, 2006, Moody's Investors Service changed to positive from stable the outlooks for the Baa1 foreign currency long-term deposit rating and D+ financial strength rating assigned to Bank of Cyprus Public Company Ltd. Also changed to positive from stable, are the outlooks for BOC's Baa1 foreign currency senior debt and Baa2 foreign currency subordinated debt ratings. At the same time, Moody's affirmed the Prime-2 for both foreign currency short- term deposits and for commercial paper. =========== F R A N C E =========== ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln --------------------------------------------------------------- Arrow Electronics Inc. has signed a definitive agreement pursuant to which Arrow will acquire substantially all of the assets and operations of the Agilysys KeyLink Systems Group for US$485 million in cash. Arrow will also enter into a long-term procurement agreement with the Agilysys Enterprise Solutions Group, Agilysys' value- added reseller business. Based in Cleveland, Ohio, KeyLink is a leading value-added distributor of enterprise servers, storage and software in the United States and Canada. Through approximately 500 employees, KeyLink provides complex solutions from industry leading manufacturers to more than 800 reseller partners. Pro forma sales for the 2006 calendar year are expected to be approximately US$1.6 billion, which include revenues that will be associated with the above-mentioned procurement agreement. "With this acquisition, we will become the leading distributor of enterprise products for both International Business Machines Corp. and Hewlett Packard Company, as well as the leading value- added distributor of storage and software," stated William E. Mitchell, Chairman, President and Chief Executive Officer of Arrow Electronics, Inc. "Keylink is a natural complement to our existing enterprise computing solutions business with its value- added approach and its resellers' focus on small and medium sized customers." "Our partnership will create significant cross selling opportunities to further accelerate our growth in the global enterprise computing solutions distribution market," stated M. Catherine Morris, president, Arrow Enterprise Computing Solutions. All field sales positions will remain intact to ensure that we will continue to provide our customers and suppliers with superior levels of service." "We believe KeyLink will further benefit from Arrow's considerable global scale, vast customer base, strong financial resources and leadership in the technology distribution market," said Arthur Rhein, chairman, president and chief executive officer of Agilysys. "As a result of this transaction, both Agilysys and Keylink will be better positioned to achieve their full potential as Agilysys focuses solely on growing its information technology solutions business. We wish Arrow well as they continue to grow their business," added Mr. Rhein. "The acquisition is expected to be US$0.18 to US$0.22 accretive in the first 12 months and will further strengthen our industry leading return on invested capital, while generating an expected US$30 million in operating cash flow annually," added Paul J. Reilly, senior vice president and chief financial officer of Arrow Electronics, Inc. The transaction, which will be funded with cash-on-hand plus borrowings under Arrow's existing committed liquidity facilities, is subject to customary closing conditions, including obtaining the necessary government approvals, and is expected to be completed within 90 days. Goldman, Sachs & Co. acted as financial advisor and Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to Arrow in connection with this transaction. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Europe, the company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Great Britain, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands and the U.K. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops -------------------------------------------------------------- Arrow Electronics Inc. has completed its previously disclosed acquisition of the storage and security distribution business of InTechnology plc for a purchase price of around US$80 million. "The acquisition of InTechnology's storage and security distribution business enables us to further expand our Enterprise Computing Solutions business into the United Kingdom, Europe's second largest IT market," stated M. Cathy Morris, president, Arrow Enterprise Computing Solutions. "We expect this transaction to create further opportunities for us in the growing storage and security software markets. We expect this transaction to be US$.02 to US$.04 accretive in 2007." InTechnology Distribution, which is headquartered in Harrogate, England and has approximately 200 employees, delivers storage and security solutions to value-added resellers in the United Kingdom. Total 2006 sales are expected to exceed US$400 million. "The addition of InTechnology's storage and security distribution business is a key strategic step towards our goal of becoming the preeminent provider of enterprise computing solutions in Europe," stated Kurt Schoeffer, managing director, DNS. "This transaction will enable us to provide a more comprehensive suite of solutions for our reseller customers," added Steve Pearce, chief operating officer, InTechnology plc. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Europe, the company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Great Britain, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands and the U.K. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition ---------------------------------------------------------------- Fitch Ratings expects that Arrow Electronics Inc.'s proposed acquisition of Agilysys Keylink Systems Group for US$485 million in cash will not affect the company's ratings or Positive Rating Outlook. However, Fitch believes further meaningful debt-financed acquisitions could result in a revision of Arrow's Rating Outlook to Stable or negative rating actions. Fitch currently rates Arrow as: -- Issuer Default Rating of BB+; -- Senior unsecured notes of BB+; and -- Senior unsecured bank credit Facility of BB+. Arrow recently announced that it has entered into a definitive agreement to acquire substantially all the assets of Keylink, a leading enterprise and computing solutions distributor, from Agilysys Inc. for US$485 million in cash. Simultaneously, Arrow entered into a long-term procurement agreement with Agilysis' value-added reseller business. With approximately US$1.6 billion of sales for calendar year 2006, pro forma for the Agilysis procurement agreement, Fitch believes the proposed acquisition will consolidate Arrow's already leading position in distributing enterprise computing solutions, and strengthen Arrow's exposure to Keylink's leading suppliers, International Business Machines and Hewlett Packard. In addition, Arrow expects Keylink to generate approximately 5.5%-6.0% operating EBIT margins in 2007, including expectations for modest cost reductions, which would be accretive to Arrow's corporate-wide profitability, which Fitch estimates was at 4.7% for the latest 12 months ended Sept. 30, 2006. While recognizing these anticipated positives, this transaction, if consummated, would be Arrow's fifth acquisition over the past year and the first to be debt-financed. Including expectations for positive free cash flow for the fourth quarter ended Dec. 31, 2006, but with just US$253 million of cash and cash equivalents as of Sept. 30, 2006, Fitch expects Arrow will fund the majority of the purchase price with either its US$600 million senior unsecured revolving credit facility expiring June 2010 and/or US$550 million accounts receivable securitization facility expiring February 2008, both of which were undrawn as of Sept. 30, 2006. Nonetheless, even assuming the transaction is fully funded with borrowings under these facilities, total debt adjusted for rent expense to operating EBITDAR will remain below 3.0 times. Fitch believes that Arrow will continue to pursue acquisition opportunities, mainly in the more fragmented global enterprise computing market, which, depending on materiality, could pressure Fitch's Positive Rating Outlook in the future. CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp. ---------------------------------------------------------- SITEL Corp. and ClientLogic Corp. have entered into an amendment to the previously announced Agreement and Plan of Merger among SITEL, ClientLogic and Stagecoach Acquisition Corporation, 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 will 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, 2006, 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 addition, 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 atwhich SITEL will seek, among other things, stockholder approval of the Merger Agreement, as amended. 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 the Marriott Regency hotel, 10220 Regency Circle, in Omaha, Nebraska. 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 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: Moody's Lifts Corporate Family Rating to B2 ------------------------------------------------------------- Moody's Investors Service upgraded ClientLogic Corp.'s corporate family rating to B2 from B3. The rating outlook is stable. Concurrently, Moody's has assigned a B2 rating to ClientLogic's US$675-million first lien term loan and US$85-million undrawn first lien revolving credit facility. Proceeds of the current offering will be applied towards the financing of ClientLogic's proposed merger with SITEL Corp. for approximately US$440 million in total implied enterprise value of which approximately US$327 million represents the equity purchase price. The transaction is expected to close at the end of January 2007. This concludes a review for possible upgrade initiated in Dec. 2006 following the company's announcement of its revised plan to merge with SITEL Corporation and SITEL's recent return to filing timely financial statements with the SEC. The upgrade reflects the increased scale that ClientLogic will have once combined with SITEL as well as the favorable outlook of the call center outsourcing industry. The B2 corporate family rating reflects the substantial risks associated with a merger of this size, modest free cash flow, sizeable financial leverage as measured by free cash flow to debt, and moderate client concentration. Mitigating these risks is the company's position as the second largest provider within the highly competitive call center outsourcing industry and projected cost savings and synergies expected with the merger Ratings/assessments: -- Corporate family rating -- B2 -- Probability of default rating -- B3 -- US$85-million first lien revolving credit facility -- B2, LGD-3, 35% -- US$675-million first lien term loan -- B2, LGD-3, 35% Headquartered in Nashville, Tennessee, ClientLogic Corp. provides outsourced call center services worldwide. ============= G E R M A N Y ============= AEP ENERGIEPLAN: Claims Registration Ends January 16 ---------------------------------------------------- Creditors of AEP Energieplan GmbH have until Jan. 16 to register their claims with court-appointed provisional administrator Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on Feb. 6, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt, 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 Erfurt opened bankruptcy proceedings against AEP Energieplan GmbH on Nov. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: AEP Energieplan GmbH Attn: Ralf Limprecht, Manager Schwemmbach 29 99099 Erfurt, Germany The administrator can be contacted at: Rolf Rombach Magdeburger Avenue 159 99086 Erfurt, Germany BGR WOHNUNGS: Claims Registration Ends January 15 ------------------------------------------------- Creditors of BGR Wohnungs- und Industrie-Bautrager GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Feb. 5, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Room 106 C Gerichtsstr. 2-6 48149 Muenster, 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 Muenster opened bankruptcy proceedings against BGR Wohnungs- und Industrie-Bautrager GmbH on Nov. 24, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: BGR Wohnungs- und Industrie-Bautrager GmbH Attn: Rolf Wiederuh, Manager Louis-Pasteur-Ring 26 46397 Bocholt, Germany The administrator can be contacted at: Horst Piepenburg Heinrich-Heine-Avenue 20 40213 Duesseldorf, Germany DAIMLERCHRYSLER AG: Insurers Agree to Repay EUR168 Million ---------------------------------------------------------- Insurance firms led by ACE Ltd. have agreed to reimburse around EUR168 million to DaimlerChrysler AG over a EUR300-million class action settlement in 2003, The Associated Press reports. A group of Chrysler shareholders filed a US$22-billion class suit against DaimlerChrysler over comments of former chairman Juergen Schrempp in 2000. Mr. Schrempp described the 1998 tie- up between Daimler and Chrysler as a takeover, but executives from both companies depicted it as a merger of equals. Mr. Schrempp noted that describing the combination as a merger rather than a takeover was "for psychological reasons" only. According to AP, DaimlerChrysler had settled the legal action for EUR300 million, assuming that liability insurance on Mr. Schrempp would cover the costs. However, only one insurer, AIG, paid DaimlerChrysler, forcing the company to sue its other insurers to recover the money, AP relays. Thomas Froehlich, a spokesman for DaimlerChrysler, and Lothar Riedle, ACE's chief in Germany, confirmed the agreement to AP but declined to give further details. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. Outlook As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said it expects a slight decrease in worldwide demand for automobiles in the fourth quarter and thus slower market growth than in Q4 2005. For full-year 2006, the company anticipates market growth of around 3%. It expects unit sales in 2006 to be lower than in the previous year (4.8 million units). On Sept. 15, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount in the magnitude of US$6.3 billion. Although the company now has to assume that the profit contribution from EADS will be US$0.3 billion lower than originally anticipated because of the delayed delivery of the Airbus A380, DaimlerChrysler is maintaining this earnings target due to very positive business developments in the divisions Mercedes Car Group, Truck Group and Financial Services. GREDNER STAHLBAU: Claims Registration Ends January 12 ----------------------------------------------------- Creditors of Gredner Stahlbau GmbH have until Jan. 12 to register their claims with court-appointed provisional administrator Friedemann U. Schade. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 2, 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 Gifhorn Hall 118 Palace Garden 4 38518 Gifhorn, 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 Gifhorn opened bankruptcy proceedings against Gredner Stahlbau GmbH on Nov. 16, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Gredner Stahlbau GmbH Attn: Manfred Gredner, Manager Hahnendamm 12 31249 Hohenhameln, Germany The administrator can be contacted at: Friedemann U. Schade Tiergarten 18 30559 Hanover, Germany Tel: 0511/9548036 Fax: 0511/9548411 IBIS ACAM: Claims Registration Ends January 14 ---------------------------------------------- Creditors of ibis acam Verwaltungs GmbH have until Jan. 14 to register their claims with court-appointed provisional administrator Jens Fahnster. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 17, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mayen Hall 17 St. Veit-Road 38 56727 Mayen, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on Feb. 7 at the same venue. The District Court of Mayen opened bankruptcy proceedings against ibis acam Verwaltungs GmbH on Nov. 9, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: ibis acam Verwaltungs GmbH Attn: Ralf Bruno Maxheim, Manager Rennweg 97 56626 Andernach, Germany The administrator can be contacted at: Jens Fahnster Koelnstr. 135 53757 St. Augustin, Germany Tel: 02241/21041+90600 Fax: 02241/906062 E-mail: Kanzlei@kalker-fahnster.de K O L Z GMBH: Claims Registration Ends January 12 ------------------------------------------------- Creditors of K O L Z GmbH Buero- Organisation have until Jan. 12 to register their claims with court-appointed provisional administrator Christine Frosch. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 16, 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 Trier Hall 63 Justizstrasse 2,4,6 54290 Trier, Germany The Court will also verify the claims set out in the administrator's report at 9:15 a.m. on Feb. 6 at the same venue. The District Court of Trier opened bankruptcy proceedings against K O L Z GmbH Buero- Organisation on Dec. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: K O L Z GmbH Buero- Organisation Attn: Guenter Jakob Bender, Manager Europa Avenue 7 54343 Foehren, Germany The administrator can be contacted at: Christine Frosch Simeonstrasse 5 D 54290 Trier, Germany Tel: 0651/9941499 Fax: 0651/9941061 E-mail: Kanzlei.Frosch@t-online.de PEQA PERSONALENTWICKLUNGSCENTER: Meeting Slated for January 18 -------------------------------------------------------------- The court-appointed provisional administrator for PEQA Personalentwicklungscenter Berlin GmbH Personalentwicklung- Qualifizierung-Ausbildung, Detlef Ruediger Beckmann, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:25 a.m. on Jan. 18. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:15 a.m. on March 29 at the same venue. Creditors have until Feb. 15 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against PEQA Personalentwicklungscenter Berlin GmbH Personalentwicklung-Qualifizierung-Ausbildung on Nov. 23, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PEQA Personalentwicklungscenter Berlin GmbH Personalentwicklung-Qualifizierung-Ausbildung Torgauer Str. 12-15 10829 Berlin, Germany The administrator can be reached at: Dr. Detlef Ruediger Beckmann Lietzenburger Road 77 10719 Berlin, Germany SLS MUSIK: Claims Registration Ends January 12 ---------------------------------------------- Creditors of SLS Musik & Verlags-GmbH & Co. KG have until Jan. 12 to register their claims with court-appointed provisional administrator Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on Feb. 12, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against SLS Musik & Verlags-GmbH & Co. KG on Nov. 23, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SLS Musik & Verlags-GmbH & Co. KG Attn: Ignaz Schneider and Franco Silvistrini, Managers Reichsbahnstrasse 76 22525 Hamburg, Germany The administrator can be contacted at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg, Germany SPORT-PROESTLER: Claims Registration Ends January 12 ---------------------------------------------------- Creditors of Sport-Proestler GmbH & Co. KG have until Jan. 12 to register their claims with court-appointed provisional administrator Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on Feb. 27, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against Sport-Proestler GmbH & Co. KG on Nov. 16, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Sport-Proestler GmbH & Co. KG Hauptwache 11 60313 Frankfurt/Main, Germany Attn: Christel Wagner, Manager H�gelgraberweg 6 61440 Oberursel, Germany The administrator can be contacted at: Ottmar Hermann Bleichstrasse 2-4 D-60313 Frankfurt/Main Germany Tel: 069/9130920 Fax: 069/91309230 V+S BAUEN: Claims Registration Ends January 15 ---------------------------------------------- Creditors of V+S Bauen und Betreuen Bautrager GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Friedrich Irschlinger. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 2, 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 Heidelberg Hall 12 Ground Floor Kurfuerstenanlage 21 69115 Heidelberg, 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 Heidelberg opened bankruptcy proceedings against V+S Bauen und Betreuen Bautrager GmbH on Nov. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: V+S Bauen und Betreuen Bautrager GmbH Attn: Gerhard Schellenberger, Manager Wendelinusstrasse 6 69207 Sandhausen, Germany The administrator can be contacted at: Friedrich Irschlinger L 9, 11 68161 Mannheim, Germany Tel: 0621/127960 Fax: 0621/1279611 WILFRIED STANGE: Claims Registration Ends January 15 ---------------------------------------------------- Creditors of Wilfried Stange GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Peer Moeller. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 26, 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 Luebeck Hall 256 Castle Field 7 23568 Luebeck, 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 Luebeck opened bankruptcy proceedings against Wilfried Stange GmbH on Nov. 30, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Wilfried Stange GmbH Attn: Barbara Teske, Manager Boeckenrad 3 23569 Luebeck, Germany The administrator can be contacted at: Dr. Peer Moeller Untere Querstr. 1 23730 Neustadt, Germany =========== G R E E C E =========== EGNATIA BANK: Quarterly Interest Period Begins Jan. 1 ----------------------------------------------------- The next quarterly interest period of Egnatia Bank S.A.'s unsecured Convertible Loan, as stated in the November 2002 prospectus, begins on Jan. 1, and ends on March 31. Specifically, with regards to the interest rate, the following applies: * reference rate 3.723% (three month Euribor, value date Jan. 1, 2007) * duration: three months * interest period: three months * spread: 1.75% The interest rate for the period 01/10/07-31/12/07 is 5.473% * number of bonds convertible into common shares: 271,710 * number of bonds convertible into preferred shares: 31,910 * number of common registered shares: 93,286,729 * number of preferred registered shares: 11,133,594 Interest is paid at maturity and on an actual/360 day basis. About Egnatia Headquartered in Thessaloniki, Greece, Egnatia Bank S.A. -- http://egnatiasite.egnatiabank.gr/-- engages in private, corporate and investment banking, bancassurance and leasing, shipping, treasury management and e-banking services. The Bank has seven subsidiaries, a network of 68 branches in Greece and is also active in the Romanian market. * * * As reported in the TCR-Europe on Dec. 22, 2006, Fitch Ratings affirmed Greece-based Egnatia Bank's Individual rating at C following a satisfactory review of the bank. Egnatia's Issuer Default BBB-, Short-term F3 and Support 5 ratings remain on Rating Watch Positive. EGNATIA BANK: Shares Begin Trading on the ATHEX After Conversion ---------------------------------------------------------------- As of Dec. 29, 2006, the 100 new (CR) and 44.410 new (PR) shares of the Egnatia Bank S.A. started trading on the ATHEX following the recent conversion from a similar number of bonds. On Dec. 29, 2006, the total number of the Bank's listed shares amounts to 93,286,729 new (CR) and 11,133,594 (PR) shares. As at Dec. 29, 2006, the total number of the Bank's listed bonds amounts to 271,710 and 31,910 bonds, converted to similar number of (CR) & (PR) shares. About Egnatia Headquartered in Thessaloniki, Greece, Egnatia Bank S.A. -- http://egnatiasite.egnatiabank.gr/-- engages in private, corporate and investment banking, bancassurance and leasing, shipping, treasury management and e-banking services. The Bank has seven subsidiaries, a network of 68 branches in Greece and is also active in the Romanian market. * * * As reported in the TCR-Europe on Dec. 22, 2006, Fitch Ratings affirmed Greece-based Egnatia Bank's Individual rating at C following a satisfactory review of the bank. Egnatia's Issuer Default BBB-, Short-term F3 and Support 5 ratings remain on Rating Watch Positive. TECHNICAL OLYMPIC: Board Names New Executive Vice Presidents ------------------------------------------------------------ Technical Olympic USA Inc.'s Board of Directors has named Stephen M. Wagman as Executive Vice President and Chief Financial Officer and Paul Berkowitz as Executive Vice President and Chief of Staff of TOUSA. Mr. Wagman brings more than 20 years of business and financial leadership to TOUSA. He joins TOUSA from MasTec Inc. a Miami-based, NYSE-listed infrastructure contractor. At MasTec, Mr. Wagman served as Executive Vice President overseeing the Company''s treasury, financial planning, mergers and acquisitions, and asset management organizations. Prior to joining MasTec, Mr. Wagman was the Chief Financial Officer of Peace Software International Limited, a utility CIS software developer recently acquired by First Data Corp. Mr. Wagman has also served as the Chief Financial Officer of several additional organizations. Mr. Wagman holds a law degree from Case Western University and a bachelor''s degree in accounting from Ohio State University. Mr. Berkowitz brings 33 years of business experience to TOUSA. As Chief of Staff and member of TOUSA''s senior management team, Mr. Berkowitz will coordinate corporate office functions and their interaction with our operating units. Prior to joining TOUSA, Mr. Berkowitz was a principal shareholder at Greenberg Traurig, LLP, a major international law firm, where he served a wide variety of clients. He concentrated on corporate and securities law and has extensive experience in financing transactions, public and private offerings, and mergers and acquisitions. Mr. Berkowitz holds a bachelor''s degree in accounting from the Wharton School of Finance and a law degree from the University of Pennsylvania. "Steve and Paul have dynamic and diverse backgrounds and are great additions to our management team," said Antonio B. Mon, President and Chief Executive Officer of TOUSA. "Both gentlemen will support me in implementing our strategic initiatives and will focus on driving value creation across the Company. I want to take this opportunity to thank Randy Kotler for his leadership and commitment as Interim Chief Financial Officer and look forward to his continued role as our Senior Vice President - Finance and Chief Accounting Officer. " About TOUSA Headquartered in Hollywood, Florida, Technical Olympic USA, Inc. (NYSE:TOA) -- http://www.tousa.com/-- is a homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and markets high-quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home. It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. Technical Olympic S.A. owns about 74% of the Company. * * * As reported in the Troubled Company Reporter on Nov. 16, 2006, Moody's Investors Service downgraded all of the ratings of Technical Olympic USA Inc. including its corporate family rating to B1 from Ba3, senior unsecured notes to B2 from Ba3 and its senior subordinated notes to B3 from B2. At the same time, Moody's lowered the Loss-Given Default assessment and rate on the senior unsecured notes to LGD4, 58% from LGD4, 53%, and on the subordinated notes to LGD5, 88% from LGD5, 87%. The ratings remain on review for downgrade, an action that was commenced on Sept. 27, 2006. ============= I R E L A N D ============= AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7 ---------------------------------------------------------------- Affiliated Computer Services Inc. reported that its Board of Directors has determined that the company's 2006 Annual Meeting of Stockholders will be held on June 7, at a time and place to be disclosed in the company's notice of annual meeting and proxy statement. Stockholders of record at the close of business on April 13, 2007, -- the record date established by the Board of Directors -- will be entitled to vote at the 2006 Annual Meeting. Stockholders are entitled to present proposals for action at future meetings if they comply with Affiliated Computer's bylaws and the requirements of the proxy rules promulgated by the US Securities and Exchange Commission. To be eligible for inclusion in Affiliated Computer's proxy statement, which will be sent to stockholders in connection with the 2006 Annual Meeting, a stockholder proposal must be sent to: William L. Deckelman, Jr. Corporate Secretary Affiliated Computer Services, Inc. 2828 North Haskell Avenue Dallas, Texas, 75204, The proposal must be presented no later than Jan. 19, 2007. A proposal that is not included in the proxy statement to be properly brought before the 2006 Annual Meeting by a stockholder, must be delivered to Mr. Deckelman no later than Jan. 19, 2007. The foregoing time limits also apply in determining whether notice is timely for purposes of rules adopted by the SEC relating to the exercise of discretionary voting authority with respect to proxies. Headquartered in Dallas, Texas, Affiliated Computer Services, Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to commercial and government clients. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services kept its ratings for Affiliated Computer Services Inc. including the 'B+' corporate credit rating, on CreditWatch, where they were placed with negative implications on Sept. 29, 2006. Fitch Ratings assigned its BB issuer default rating, BB senior secured revolving bank credit facility rating, BB senior secured term loan rating, and BB senior notes rating on Affiliated Computer Services, Inc. The rating outlook is negative. CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp. ---------------------------------------------------------- SITEL Corp. and ClientLogic Corp. have entered into an amendment to the previously announced Agreement and Plan of Merger among SITEL, ClientLogic and Stagecoach Acquisition Corporation, 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 will 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, 2006, 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 addition, 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 atwhich SITEL will seek, among other things, stockholder approval of the Merger Agreement, as amended. 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 the Marriott Regency hotel, 10220 Regency Circle, in Omaha, Nebraska. 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 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: Moody's Lifts Corporate Family Rating to B2 ------------------------------------------------------------- Moody's Investors Service upgraded ClientLogic Corp.'s corporate family rating to B2 from B3. The rating outlook is stable. Concurrently, Moody's has assigned a B2 rating to ClientLogic's US$675-million first lien term loan and US$85-million undrawn first lien revolving credit facility. Proceeds of the current offering will be applied towards the financing of ClientLogic's proposed merger with SITEL Corp. for approximately US$440 million in total implied enterprise value of which approximately US$327 million represents the equity purchase price. The transaction is expected to close at the end of January 2007. This concludes a review for possible upgrade initiated in Dec. 2006 following the company's announcement of its revised plan to merge with SITEL Corporation and SITEL's recent return to filing timely financial statements with the SEC. The upgrade reflects the increased scale that ClientLogic will have once combined with SITEL as well as the favorable outlook of the call center outsourcing industry. The B2 corporate family rating reflects the substantial risks associated with a merger of this size, modest free cash flow, sizeable financial leverage as measured by free cash flow to debt, and moderate client concentration. Mitigating these risks is the company's position as the second largest provider within the highly competitive call center outsourcing industry and projected cost savings and synergies expected with the merger Ratings/assessments: -- Corporate family rating -- B2 -- Probability of default rating -- B3 -- US$85-million first lien revolving credit facility -- B2, LGD-3, 35% -- US$675-million first lien term loan -- B2, LGD-3, 35% Headquartered in Nashville, Tennessee, ClientLogic Corp. provides outsourced call center services worldwide. ========= I T A L Y ========= PARMALAT SPA: Court Orders CEO to Return OCC Documents to BofA -------------------------------------------------------------- The Hon. Lewis A. Kaplan of the U.S. Southern District of New York ordered Dr. Enrico Bondi, Chief Executive of Parmalat S.p.A., to return to Bank of America all copies of the five Office of the Comptroller of Currency-related documents BofA inadvertently produced and is precluded from using them, or the information they contain, in any way. Judge Kaplan stated that the Court is assuming the existence or the probable applicability of a bank examination privilege asserted by the Office of the Comptroller of Currency. "The difficulty, however, is that the horse is out of the barn." Judge Kaplan noted that the documents, apart from the five that were produced by Bank of America, have been made available by Italian authorities to the parties and to 65,000 others. "In the absence of any evidence implicating Dr. Enrico Bondi or any of the litigants in the Italian government's seizure and thus its invasion of the privilege, it is impossible to see how preventing Dr. Bondi from using them would further the OCC's interest in fostering candid communication with the agency and between the OCC and the banks it supervises." According to Judge Kaplan, all involved in the process must understand that there always is a risk that otherwise privileged documents will become public. Legal privileges rarely can protect against theft, seizure by foreign governments, and a host of other contingencies. Judge Kaplan, nevertheless, clarifies that the BofA documents are another matter. He said that the inadvertent production "of a privileged document does not waive the privilege unless the producing party's conduct was so careless as to suggest that it was not concerned with the protection of the asserted privilege." BofA has submitted a declaration that demonstrates the care taken to avoid that production and the steps were adequate. Hence, Judge Kaplan granted Dr. Bondi's request to retain and use OCC-related documents and testimony with respect to the documents seized by Italian authorities and the deposition already taken. Dr. Bondi's request is, however, denied in all other respects. BofA Wants Bondi's Complete Answers Bank of America asked the Court to compel Dr. Bondi to provide complete answers to its first set of interrogatories, which was served on Sept. 25, 2006. Daniel A. McLaughlin, Esq., at Sidley Austin LLP, in New York, relates that in his complaint, Dr. Bondi alleges that "Bank of America's transactions with Parmalat were knowingly designed to assist Parmalat corrupt managers in their looting schemes" and that BofA's transactions with Parmalat "provided no economic benefit to Parmalat." In light of the allegations, BofA seeks factual information concerning: (1) the amounts allegedly looted by Parmalat insiders; (2) the flow of funds from Parmalat's transactions with BofA that allegedly tie the funds to the looting; and (3) Dr. Bondi's computation of damages, which is allowed by Rule 33.3 of the Local Rules of the U.S. District Court for the Southern District of New York. Mr. McLaughlin told the Court that Dr. Bondi refuses to provide meaningful responses concerning any of the basic issues that are central to his Complaint. Complete and thorough responses to BofA's interrogatories are the most practical method through which BofA will be able to gain the information sought, Mr. McLaughlin added. Dr. Bondi's reference to the documents that he and other parties have produced in the present litigation, without identifying the specific documents on which he relies, is a wholly insufficient interrogatory response, Mr. McLaughlin said. Moreover, Mr. McLaughlin noted that Dr. Bondi's failure to provide sufficient responses severely prejudices BofA. Dr. Bondi should not be permitted to sandbag BofA by failing to provide any substantive response to the interrogatories until after the close of discovery. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy Holdings, Ltd., and Food Holdings, Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat SpA. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. (Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service Inc. 215/945-7000, http://bankrupt.com/newsstand/) PARMALAT SPA: Italy's State Council Quashes Lower Court's Ruling ---------------------------------------------------------------- The Italian State Council has, on appeals submitted by the Municipal Administration of the City of Rome and by Parmalat S.p.A., quashed the decision of the Regional Administrative Court of Lazio and has remanded to the judge of first instance. The case was initiated by Ariete Fattoria Latte Sano S.p.A. after its bid for Centrale del Latte di Roma S.p.A. had been rejected. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy Holdings, Ltd., and Food Holdings, Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat SpA. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. (Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service Inc. 215/945-7000, http://bankrupt.com/newsstand/) =================== K A Z A K H S T A N =================== ATYRAU TRADING: Creditors Must File Claims by February 13 --------------------------------------------------------- LLP Atyrau Trading Company has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Atyrau Trading Company Satybaldiev Str. 95 Atyrau Atyrau Region Kazakhstan AY STROYSERVICE LLP: Claims Filing Period Ends February 9 --------------------------------------------------------- LLP Ay Stroyservice has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Ay Stroyservice Office 1 Pugachev Str. 4 Almaty, Kazakhstan Tel: 8 (3272) 78-45-54 GAVRINO LLP: Proof of Claim Deadline Slated for February 8 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Gavrino insolvent on Nov. 22, 2006. Creditors have until Feb. 8 to submit written proofs of claim to: Department of Agriculture Konstitutsia Kasakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan KAINAR-KUS JSC: Claims Registration Ends February 13 ---------------------------------------------------- JSC Kainar-Kus has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: JSC Kainar-Kus Kainar Ordabasinsky District South Kazakhstan Region Kazakhstan JAKSY-2003 LLP: Creditors Must File Claims by February 8 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Jaksy-2003 insolvent on Nov. 8, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Jaksy-2003 Micro District 28, 35-25 Aktau Mangistau Region Kazakhstan JANIBEK LLP: Proof of Claim Deadline Slated for February 8 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Janibek insolvent. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Janibek Room 40 Tarana Str. 85 Kostanai Kostanai Region Tel: 8 (3142) 54-28-39 KELESHEK LLP: Creditors' Claims Due February 9 ---------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Keleshek insolvent on Nov. 20, 2006. Creditors have until Feb. 9 to submit written proofs of claim to: Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan LOGIKA LLP: Creditors Must File Claims by February 8 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Logika insolvent on Nov. 15, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Logika Vtoraya Bratskaya Str. 24 Almaty, Kazakhstan Tel: 8 333 223 07-71 PROMSPETSAUTOMATIKA OJSC: Creditors' Claims Due February 13 ----------------------------------------------------------- OJSC Industrial Special Automation Promspetsautomatika has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: OJSC Promspetsautomatika Baiseitova Str. 11/13-3 Almaty, Kazakhstan RAUSHAN LLP: Claims Filing Period Ends February 9 ------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Raushan insolvent on Nov. 21, 2006. Creditors have until Feb. 9 to submit written proofs of claim to: Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Region Kazakhstan RIA JAM: Almaty Court Begins Bankruptcy Proceedings --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against LLP Ria Jam Entertainment (RNN 600900177916). SARY-ARKA: Proof of Claim Deadline Slated for Febraury 9 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared Construction Holding Company Sary-Arka insolvent on Nov. 17, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 9 to submit written proofs of claim to: Sary-Arka Ulbike akyn Str. 124 Taraz Jambyl Region Kazakhstan Tel/Fax: 8 (3262) 34-53-11 STRAITS OFFSHORE: Creditors' Claims Due February 13 --------------------------------------------------- LLP Straits Offshore Kazakhstan has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Straits Offshore Kazakhstan Micro District 11, 23-39 Aktau Mangistau Region Kazakhstan TEMIRZHOLY LOGISTIC: Karaganda Court Starts Bankruptcy Procedure ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region commenced bankruptcy proceedings against LLP Temirzholy Logistic Co. Ltd. (RNN 301200215565). LLP Temirzholy Logistic Co. Ltd. Dimitrov Str. 49-5 Temirtau Karaganda Region Kazakhstan Tel: 8 (3292) 40-21-53 8 (3005) 22-81-61 VOLVOX INVEST: Proof of Claim Deadline Slated for Feb. 13 --------------------------------------------------------- LLP Volvox Invest Company has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Volvox Invest Company Burov Str. 69 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== KYRGYZKOMUR CORP: Creditors' Meeting Slated for Jan. 10 ------------------------------------------------------- The temporary insolvency manager of the OJSC Corporation Kyrgyzkomur will conduct a creditors' meeting at 10:00 a.m. on Jan. 10 at: Room 141 Chui Ave.106 Bishkek, Kyrgyzstan Agenda: -- report of temporary insolvency manager; -- affirmation of insolvency spending; -- discarding of accounts receivable; -- prolongation of the term of bankruptcy; and proceedings holding. Proxies must have authorization to vote. Inquiries can be addressed to (+996 312) 62-52-42. =================== L U X E M B O U R G =================== NOVELIS INC: Appoints Edward Blechschmidt as Chief Executive ------------------------------------------------------------ Novelis Inc. reported that it has named Edward A. Blechschmidt, currently a member of its Board of Directors, to become acting chief executive officer, effective Jan. 2, 2007. Mr. Blechschmidt succeeds board chairperson William T. Monahan, who has been interim chief executive officer since August 2006. Mr. Monahan remains chairperson of the Novelis board. Mr. Monahan said, "When I assumed the Interim CEO (chief executive officer) position in August, our ideal goal was to have a new CEO by year-end, at which time I could return to my other commitments. However, finding the right CEO for Novelis will take a little longer than expected, so I am passing the baton to Ed Blechschmidt, a Board colleague with significant management experience and commitment to shareholder value. Ed has been part of our three-person Office of the chairman for the last four months and he is the right person to move the company forward in a hands-on manner during whatever period of time is needed to address new day-to-day leadership. Novelis will continue its search for a permanent CEO." Mr. Blechschmidt joined the Novelis board in June 2006. He is a former chairperson and chief executive officer of Gentiva Health Services, Inc., a provider of specialty pharmaceutical and home health care services that was spun off from Olsten Corporation and taken public in 2000. He retired from Gentiva Health in 2002 and remained a director until 2005. Before joining Gentiva Health, Mr. Blechschmidt served as president and then chief executive officer of Olsten. Prior to that, he served as president and chief executive officer of Siemens Nixdorf Americas and Siemens Pyramid Technologies from 1996 to 1998, and spent more than 20 years with Unisys Corp., where he held positions of increasing responsibility including chief financial officer. "I look forward to working with the talented employees of Novelis at this exciting time. We continue to take important steps forward in developing a world-class organization that delivers value to both shareholders and customers. I am happy to have the opportunity to play a more meaningful role in those initiatives," Mr. Blechschmidt stated. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. * * * Standard & Poor's Ratings Services it affirmed all of its ratings on Novelis Inc., including the 'BB-' long-term corporate credit rating, and removed the ratings from CreditWatch with negative implications, where they were placed April 7, 2006. S&P said the outlook is negative. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors, the rating agency confirmed its B1 Corporate Family Rating for Novelis Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: Novelis Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 Million Guaranteed Senior Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 Billion 7.25% Guaranteed Senior Unsecured Notes B2 B3 LGD5 76% Issuer: Novelis Corporation Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% ===================== N E T H E R L A N D S ===================== GLOBAL POWER: Wants General Claims Bar Date Set for April 18 ------------------------------------------------------------ Global Power Equipment Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to set April 18, 2007, as the deadline for all creditors and governmental units owed money by the Debtors on the account of claims arising prior to Sept. 28, 2006. The Debtors also ask the Court to set May 18, 2007, as the deadline for all creditors, including the Debtors, owed money by co-Debtors, sureties or guarantors, on accounts of claims arising prior to Sept. 28, 2006. The purpose of the bar date is to provide a deadline to identify any possible unknown claims against the Debtors' estates and to give parties additional certainty regarding the magnitude of claims against the Debtors' estates. Copies of written proofs of claim must be sent or hand delivered on or before the April 18 Bar Date to: Global Power Equipment Group, Inc. c/o Alix Partners LLC 2100 McKinney Avenue, Suite 800 Dallas, Texas 75201 Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. GLOBAL POWER: Equity Panel Hires Houlihan Lokey as Fin'l Advisor ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized, on an interim basis, the Official Committee of Equity Security Holders appointed in the Chapter 11 cases of Global Power Equipment Group Inc. and its debtor-affiliates, to retain Houlihan Lokey Howard & Zukin Capital, Inc. as its financial advisor, nunc pro tunc Nov. 9, 2006. Houlihan Lokey is expected to: a. perform due diligence on the Debtors' businesses, as well as their prospect and the markets in which they compete; b. evaluate the assets and liabilities of the Debtors; c. analyze and review the financial and operating statements of the Debtors; d. analyze the business operations, business plans and forecasts of the Debtors; e. evaluate all aspects of the Debtors' DIP financing; cash collateral usage and adequate protection therefor; any exit financing in connection with any chapter 11 plan of reorganization and any budgets relating thereto; and any employee retention programs or similar proposed compensation plan or program; f. assist the Equity Committee, as needed, in identifying potential alternative sources of liquidity in connection with any chapter 11 plan or otherwise; g. provide specific valuation and other financial analyses as the Equity Committee may require in connection with the Cases; h. represent the Equity Committee in negotiations with the Debtors, the official committee of unsecured creditors of the Debtors and third parties with respect to any of the foregoing; i. provide testimony in court on behalf of the Equity Committee, if necessary; j. assess the financial issues and options concerning: * the sale of any assets of the Debtors and/or their non- debtor affiliates, either in whole or in part, and * the Debtors' chapter11 plan(s) or any other chapter 11 plan(s); and k. provide other customary services as may reasonably be requested by the Equity Committee. Joel L. Klein, Chair of the Committee, discloses that Houlihan Lokey will be paid post-petition under the terms of the Engagement Agreement: a. US$100,000 per month in cash from the Effective Date through termination of the Engagement Agreement. The first Monthly Fees will be paid on the first date permitted by the Court, and then, subject to the orders governing payment of interim compensation of retained professionals in these Cases, on each monthly anniversary of the Effective Date; plus b. a transaction fee payable upon the consummation of each "Transaction" equal to 2% of the first $23,500,000 of the "Aggregate Equity Holder Recoveries", 3% of the next US$14,100,000 of Aggregate Equity Holder Recoveries and 4% of Aggregate Equity Holder Recoveries in excess of US$37,600,000. c. Houlihan Lokey's monthly fees and transaction fees will be payable in cash, provided however that Houlihan Lokey's total cash compensation will be capped at US$3,000,000. Any amount due to and payable to Houlihan Lokey in excess of US$3,000,000 will be payable "In Kind" (i.e., in the same manner and currency/form as and when received by equity holders). Houlihan Lokey would also seek reimbursement for reasonable out- of pocket expenses incurred. Mr. Klein assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not hold nor represent any interest adverse to the Debtors' estates. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. PLAYLOGIC ENT: Sept. 30 Balance Sheet Upside-Down by US$7.4 Mln --------------------------------------------------------------- Playlogic Entertainment Inc. reported a US$4.6 million net loss on US$1.5 million of revenues for the quarter ended Sept. 30, 2006, compared with a US$1.3 million net loss on US$542,579 of revenues for the same period in 2005. The US$918,615 increase in revenues is mainly due to the release of the PC game Age of Pirates: Caribbean Tales. The increase in net loss is primarily due to the US$202,007 increase in selling, marketing, general and administrative expense, the US$979,132 increase in research and development expenses, the US$380,238 increase in interest expenses, a US$1.2 million loan penalty expense and exchange losses of US$360,471. In the prior period quarter, the company recorded reorganization expenses of US$255,155, absent in 2006. Research and development expenses increased due to the fact that a lower portion of research and development expenses was capitalized. At Sept. 30, 2006, the company's balance sheet showed US$8.5 million in total assets and US$15.9 million in total liabilities, resulting in a US$7.4 million total stockholders' deficit. The company's balance sheet at Sept. 30, 2006, also showed strained liquidity with US$2.8 million in total current assets available to pay US$15.7 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2006, are available for free at http://researcharchives.com/t/s?17ba Going Concern Doubt S. W. Hatfield, CPA, expressed substantial doubt about the company's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's net operating losses and reliance on outside sources of working capital to meet current obligations. About Playlogic Entertainment Headquartered in Amsterdam, Netherlands, Playlogic Entertainment Inc. publishes interactive entertainment products, such as video game software and other digital entertainment products. The company publishes for most major interactive entertainment hardware platforms, like Sony's PlayStation2, Microsoft's Xbox and Nintendo's Game Cube, PCs, next generation consoles and handheld (such as Nintendo's Game Boy, Nintendo DS, and PSP) and mobile devices. =========== N O R W A Y =========== FINANCE CREDIT: Auditor Convicted for Negligent Accounting ---------------------------------------------------------- John Haukland, a KPMG LLP group partner, will serve 30 days in jail after the Oslo District Court in Norway convicted him of contributing through gross negligence to significant violations of the accounting laws while employed as auditor at Finance Credit years before the collection agency went bankrupt in 2003, The Associated Press reports. The Norwegian branch of KPMG was however acquitted as "the court finds that it was not the organization that failed in the case but auditor Haukland and his team." The court also rejected the prosecution's demand to impose a DKN13-million fine on KPMG. According to AP, the court discovered that Mr. Haukland approved inaccurate annual accounts from Finance Credit. He was given two weeks to decide whether to appeal. The court emphasized that Mr. Haukland admitted to many of the allegations and even surrendered his accounting license. =========== P O L A N D =========== AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7 ---------------------------------------------------------------- Affiliated Computer Services Inc. reported that its Board of Directors has determined that the company's 2006 Annual Meeting of Stockholders will be held on June 7, at a time and place to be disclosed in the company's notice of annual meeting and proxy statement. Stockholders of record at the close of business on April 13, 2007, -- the record date established by the Board of Directors -- will be entitled to vote at the 2006 Annual Meeting. Stockholders are entitled to present proposals for action at future meetings if they comply with Affiliated Computer's bylaws and the requirements of the proxy rules promulgated by the US Securities and Exchange Commission. To be eligible for inclusion in Affiliated Computer's proxy statement, which will be sent to stockholders in connection with the 2006 Annual Meeting, a stockholder proposal must be sent to: William L. Deckelman, Jr. Corporate Secretary Affiliated Computer Services, Inc. 2828 North Haskell Avenue Dallas, Texas, 75204, The proposal must be presented no later than Jan. 19, 2007. A proposal that is not included in the proxy statement to be properly brought before the 2006 Annual Meeting by a stockholder, must be delivered to Mr. Deckelman no later than Jan. 19, 2007. The foregoing time limits also apply in determining whether notice is timely for purposes of rules adopted by the SEC relating to the exercise of discretionary voting authority with respect to proxies. Headquartered in Dallas, Texas, Affiliated Computer Services, Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to commercial and government clients. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services kept its ratings for Affiliated Computer Services Inc. including the 'B+' corporate credit rating, on CreditWatch, where they were placed with negative implications on Sept. 29, 2006. Fitch Ratings assigned its BB issuer default rating, BB senior secured revolving bank credit facility rating, BB senior secured term loan rating, and BB senior notes rating on Affiliated Computer Services, Inc. The rating outlook is negative. GETIN FINANCE: Fitch Assigns BB Rating on US$100-Mln Bond Issue --------------------------------------------------------------- Fitch Ratings assigned Getin Finance Plc's US$100 million bond issue a final Long-term rating of BB. The bonds are issued under GF's EUR1 billion debt issuance program and are unconditionally and irrevocably guaranteed by Getin Bank SA. GB's ratings are Issuer Default BB with Stable Outlook, Short-term B, Individual D and Support 5. The bonds are due November 2008. Both the bonds and the guarantee of GB have senior status. The net proceeds of the issue are used to fund GB. GF is a SPV created by GB for the purpose of the above-mentioned debt issuance program. GB is 99.35%-owned by Getin Holding, a privately owned integrated financial group quoted on the Warsaw Stock Exchange. At end of first half 2006, the bank's total assets amounted to PLN8.6 billion. GB's business model is based on targeting the rapidly growing Polish retail banking market and leveraging third-party distribution channels. ============= R O M A N I A ============= ARDAF SA: Shareholders to Elect New Board on Feb. 7 --------------------------------------------------- Shareholders of Asigurare Reasigurare Ardaf S.A. will convene on Feb. 7 to elect its Board of Directors, Ziarul Financiar reports. Aside from electing three members to the Board, shareholders will also name members to Ardaf's executive management. All shareholders registered at the Central Repository as of Jan. 31 can attend the meeting, Ziarul Financiar relays. Shareholders seeking election to the Board must submit their application to: Asigurare Reasigurare Ardaf S.A. Strada Xenopol nr. 3 400475 Cluj-Napoca Romania Tel: +40-264-594261 Fax: +40-264-598266 Radu Cocea, the Ardaf's special administrator, is currently taking all the duties of the Board. As previously reported in the TCR-Europe, Comisiei de Supraveghere a Asigurarilor, Romania's Insurance Monitoring Commission, placed Ardaf under special administration and appointed lawyer Radu Cocea as receiver on July 18. CSA ruled that Ardaf has jeopardized the possibility of satisfying its obligations to its clients and creditors. The insurance commission said the proposed measures were meant to boost Ardaf's financial recovery and protect the rights of the insured. CSA noted that Ardaf's insurance contracts remains in force on under normal conditions. Following CSA's ruling, market regulators suspended Ardaf shares from trading on the Bucharest Stock Exchange. Ardaf underwent similar proceedings in October 2005. The group recovered within two months following a EUR5 million capital hike. The company's shareholders -- which include Tender SA (56.19%), Raiffeisen Zentralbank (19.92%) and Clairmont Holding Ltd. (10.17%) -- decided on Nov. 15, 2006, to raise Ardaf's RON62.28 million share capital by RON100 million. The company had the first phase of the capital increase on Nov. 23 to Dec. 27, 2006, gaining around RON59.36 million in subscribed shares. Ardaf also recently concluded the second subscription stage on Jan. 5. About Ardaf Headquartered in Cluj-Napoca, Romania, Asigurare Reasigurare Ardaf S.A. -- http://www.ardaf.ro/-- offers insurance contracts, including all types of general facultative and life insurance. The company controls 5.28% of the Romanian insurance market. =========== R U S S I A =========== ELDORADO-WOOD LLC: Court Names T. Evdokimova to Manage Assets ------------------------------------------------------------- The Arbitration Court of Tomsk Region appointed Ms. T. Evdokimova as Insolvency Manager for LLC Eldorado-Wood. She can be reached at: T. Evdokimova Post User Box 712 Central Post Office 634050 Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7150/06. The Debtor can be reached at: LLC Eldorado-Wood Kuleva Str. 3-86 Tomsk Tomsk Region Russia FEDOROVSKOYE-IZHORA OJSC: Names K. Koloskov to Manage Assets ------------------------------------------------------------ The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. K. Koloskov as Insolvency Manager for OJSC Fedorovskoye-Izhora. He can be reached at: K. Koloskov Post User Box 211 196084 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-32426/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: OJSC Fedorovskoye-Izhora Fedorovskoye Tosnenskiy Region 187021 Leningrad Region Russia FUEL-TRANSPORT COMPANY: Court Names V. Murin to Manage Assets ------------------------------------------------------------- The Arbitration Court of Tomsk Region appointed Mr. V. Murin as Insolvency Manager for LLC Fuel-Transport Company (TIN 7007009083). He can be reached at: V. Murin Room 2 Belinskogo Str. 20/1 634029 Tomsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7286/06. The Debtor can be reached at: LLC Fuel-Transport Company Belinskogo Str. 3 Kolpashevo Kolpashevskiy Region 636460 Tomsk Region Russia GREVI CJSC: Bankruptcy Hearing Slated for February 8 ---------------------------------------------------- The Arbitration Court of Saratov Region will convene on Feb. 8 to hear the bankruptcy supervision procedure on CJSC Grevi. The case is docketed under Case No. A 57-668B/06-31. The Temporary Insolvency Manager is: A. Zadunayskiy Proletarskaya Str. 73V Olkhovka Olkhovskiy Region 403650 Volgograd Region Russia The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: CJSC Grevi Balakovo Saratov Region Russia KALITVA-BUILDING-MATERIALS LLC: Court Hearing Set for March 19 -------------------------------------------------------------- The Arbitration Court of Rostov Region will convene at 2:30 p.m. on March 19 to hear the bankruptcy supervision procedure on LLC Kalitva-Building-Materials (TIN 6142015564). The case is docketed under Case No. A53-16154/06-S2-51. The Temporary Insolvency Manager is: Y. Galadzheva Office 4 Krasnoarmeyskaya Str. 208 344010 Rostov-na-Donu Russia The Arbitration Court of Rostov Region is located at: Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Kalitva-Building-Materials Shakhta-15 Belaya Kalitva Rostov Region Russia KLETSKAYA AGRICULTURAL: Court Names S. Pavlish to Manage Assets --------------------------------------------------------------- The Arbitration Court of Volgograd Region appointed Ms. S. Pavlish as Insolvency Manager for OJSC Kletskaya Agricultural Company (TIN 3412005363). She can be reached at: S. Pavlish Office 400 7th Gvardeyskaya Str. 2a 400005 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-5681/06-s58. The Debtor can be reached at: OJSC Kletskaya Agricultural Company Dymchenko Str. 47 Kletskaya St. 403560 Volgograd Region Russia OKTYABRSKIY FACTORY: Court Names R. Baykov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Bashkortostan Republic appointed Mr. R. Baykov as Insolvency Manager for OJSC Oktyabrskiy Factory of Oil And Gas Engineering. He can be reached at: R. Baykov Kosmonavtov Str. 65 Oktyabrskiy Bashkortostan Republic Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-6943/06-G-ADM. 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 of Oil and Gas Engineering Kosmonavtov Str. 65 Oktyabrskiy Bashkortostan Republic Russia PETROVSKIY: Court Names O. Shatalova as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Saratov Region appointed Ms. O. Shatalova as Insolvency Manager for Federal State Unitary Enterprise Horse Breeding Factory Petrovskiy. She can be reached at: O. Shatalova Post User Box 2492 410076 Saratov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-435B/05-23. The Arbitration Court of Saratov Region is located at: Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: Federal State Unitary Enterprise Horse Breeding Factory Petrovskiy Sosnovoborskoye Petrovskiy Region Saratov Region Russia PODPOROZHSKIY COMPLEX: Court Names V. Fedichev to Manage Assets --------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. V. Fedichev as Insolvency Manager for CJSC Podporozhskiy Complex Wood (TIN 4711001256). He can be reached at: V. Fedichev Premise 10N Letter A Bolshoy Pr. P.S. 79 197022 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-36961/2005. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Podporozhskiy Complex Wood Premise 10N Letter A Bolshoy Pr. P.S. 79 197022 St. Petersburg Region Russia SAVINSKIY CJSC: Court Names O. Novikov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Arkhangelsk Region appointed Mr. O. Novikov as Insolvency Manager for CJSC Savinskiy. He can be reached at: O. Novikov Post User Box 12 163071 Arkhangelsk-71 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-11194//2006-6. The Arbitration Court of Arkhangelsk Region is located at: Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: CJSC Savinskiy 40 Let Pobedy Str Savinskiy Plesetskiy Region Arkhangelsk Region Russia SEVERNAYA CJSC: Bankruptcy Hearing Slated for April 30 ------------------------------------------------------ The Arbitration Court of Krasnoyarsk Region will convene at 11:00 a.m. on April 30 to hear the bankruptcy supervision procedure on CJSC Gold-Mining Company Severnaya. The case is docketed under Case No. A33-18271/2006. The Temporary Insolvency Manager is: E. Katser Post User Box 12161 660041 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: CJSC Gold-Mining Company Severnaya Veselaya Str. 16 660006 Krasnoyarsk Region Russia SEV-RYB-KHOLOD-FLOOT OJSC: Names D. Balakshin to Manage Assets -------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. D. Balakshin as Insolvency Manager for OJSC Sev-Ryb-Kholod-Floot. He can be reached at: D. Balakshin Obvodnogo Kanala Quay 118A 190005 St. Petersburg Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-42390/2005. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: OJSC Sev-Ryb-Kholod-Floot Premise 1N Mezhevoy Kanal 5A 198035 St. Petersburg Region Russia VENEER PRODUCTION-1: Bankruptcy Hearing Slated for March 14 ----------------------------------------------------------- The Arbitration Court of Perm Region will convene at 10:00 a.m. on March 14 to hear the bankruptcy supervision procedure on LLC Veneer Production-1 (TIN 5919018660). The case is docketed under Case No. A50-17151/2006-B. The Temporary Insolvency Manager is: A. Bannykh Office 209 Building 2 Starykh Bolshevikov Str. 2a 620017 Ekaterinburg Region Russia The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: LLC Veneer Production-1 Kommunisticheskaya Str. 44 Solikamsk Perm Region Russia VOLZHSKAYA LEASING: Court Names A. Polyakov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Volgograd Region appointed Mr. A. Polyakov as Insolvency Manager for OJSC Volzhskaya Leasing Company (TIN 3435800865, KPP 343501001). He can be reached at: A. Polyakov N. Kachuevskoy Str. 2D 400002 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-16549/06-s57. The Debtor can be reached at: A. Polyakov N. Kachuevskoy Str. 2D 400002 Volgograd Region Russia ===================== S W I T Z E R L A N D ===================== J.H. TRACHSLER: Court Closes Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Bern-Mittelland entered Nov. 17, 2006, an order closing the bankruptcy proceedings of JSC J. H. Trachsler. The Debtor can be reached at: JSC J. H. Trachsler Effingerstrasse 21 Ostermundigen BE Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland PP PINCO: Wallisellen Court Suspends Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Wallisellen suspended the bankruptcy proceedings of LLC PP Pinco Palino on Nov. 27, 2006, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on May 11, 2006, can be reached at: LLC PP Pinco Palino Neugutstrasse 19 8002 Zurich Switzerland The Bankruptcy Service of Wallisellen can be reached at: Bankruptcy Service of Wallisellen 8304 Wallisellen Zurich Switzerland MATOLA JSC: Aussersihl-Zurich Court Closes Bankruptcy Process ------------------------------------------------------------- The Bankruptcy Court of Aussersihl-Zurich entered Nov. 8, 2006, an order closing the bankruptcy proceedings of JSC Matola. The Debtor can be reached at: JSC Matola Kanzleistrasse 80 8004 Zurich Switzerland The Bankruptcy Service of Aussersihl-Zurich can be reached at: Bankruptcy Service of Aussersihl-Zurich 8026 Zurich Switzerland MERENGUE JSC: Zug Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC Merengue on Nov. 8, 2006. The Debtor can be reached at: JSC Merengue Im Rotel 10a 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland NOVELIS INC: Appoints Edward Blechschmidt as Chief Executive ------------------------------------------------------------ Novelis Inc. reported that it has named Edward A. Blechschmidt, currently a member of its Board of Directors, to become acting chief executive officer, effective Jan. 2, 2007. Mr. Blechschmidt succeeds board chairperson William T. Monahan, who has been interim chief executive officer since August 2006. Mr. Monahan remains chairperson of the Novelis board. Mr. Monahan said, "When I assumed the Interim CEO (chief executive officer) position in August, our ideal goal was to have a new CEO by year-end, at which time I could return to my other commitments. However, finding the right CEO for Novelis will take a little longer than expected, so I am passing the baton to Ed Blechschmidt, a Board colleague with significant management experience and commitment to shareholder value. Ed has been part of our three-person Office of the chairman for the last four months and he is the right person to move the company forward in a hands-on manner during whatever period of time is needed to address new day-to-day leadership. Novelis will continue its search for a permanent CEO." Mr. Blechschmidt joined the Novelis board in June 2006. He is a former chairperson and chief executive officer of Gentiva Health Services, Inc., a provider of specialty pharmaceutical and home health care services that was spun off from Olsten Corporation and taken public in 2000. He retired from Gentiva Health in 2002 and remained a director until 2005. Before joining Gentiva Health, Mr. Blechschmidt served as president and then chief executive officer of Olsten. Prior to that, he served as president and chief executive officer of Siemens Nixdorf Americas and Siemens Pyramid Technologies from 1996 to 1998, and spent more than 20 years with Unisys Corp., where he held positions of increasing responsibility including chief financial officer. "I look forward to working with the talented employees of Novelis at this exciting time. We continue to take important steps forward in developing a world-class organization that delivers value to both shareholders and customers. I am happy to have the opportunity to play a more meaningful role in those initiatives," Mr. Blechschmidt stated. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. * * * Standard & Poor's Ratings Services it affirmed all of its ratings on Novelis Inc., including the 'BB-' long-term corporate credit rating, and removed the ratings from CreditWatch with negative implications, where they were placed April 7, 2006. S&P said the outlook is negative. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors, the rating agency confirmed its B1 Corporate Family Rating for Novelis Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: Novelis Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 Million Guaranteed Senior Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 Billion 7.25% Guaranteed Senior Unsecured Notes B2 B3 LGD5 76% Issuer: Novelis Corporation Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% SAMPEX CAPITAL: Berne Court Suspends Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Bern-Mittelland suspended the bankruptcy proceedings of Sampex Capital Inc. on Dec. 9, 2006, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Aug. 9, 2006, can be reached at: Sampex Capital Inc. Steinibachweg 3 3052 Zollikofen Berne Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland STAUFFENEGGER JSC: Court Closes Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Court of Bern-Mittelland entered Nov. 17, 2006, an order closing the bankruptcy proceedings of JSC Stauffenegger. The Debtor can be reached at: JSC Stauffenegger Effingerstrasse 39 3008 Bern Switzerland The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Administrative Department Bern 3011 Bern Switzerland TECHNET JSC: Oerlikon-Zurich Court Suspends Bankruptcy Process -------------------------------------------------------------- The Bankruptcy Court of Oerlikon-Zurich suspended the bankruptcy proceedings of LLC PP Pinco Palino on Nov. 27, 2006, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF6,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Sept. 12, 2006, can be reached at: LLC PP Pinco Palino Schwamendingenstrasse 53 8050 Zurich Switzerland The Bankruptcy Service of Oerlikon-Zurich can be reached at: Bankruptcy Service of Oerlikon-Zurich 8050 Zurich Switzerland TELIO FIX: Embrach Court Closes Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Service of Embrach entered Nov. 2, 2006, an order closing the bankruptcy proceedings of JSC Telio Fix. The Debtor can be reached at: JSC Telio Fix Weiacherstrasse 85 8427 Rorbas Zurich Switzerland The Bankruptcy Service of Embrach can be reached at: Bankruptcy Service of Embrach 8424 Embrach Zurich Switzerland TRESA LLC: Wadenswil Court Closes Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Service of Wadenswil entered Oct. 26, 2006, an order closing the bankruptcy proceedings of LLC Tresa. The Debtor can be reached at: LLC Tresa Ekrem Inan? Zugerstrasse 36 8805 Richterswil Zurich Switzerland The Bankruptcy Service of Wadenswil can be reached at: Bankruptcy Service of Wadenswil 8820 Wadenswil Switzerland WARCRAFT LLC: Berne Court Closes Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Bern-Mittelland entered Nov. 13, 2006, an order closing the bankruptcy proceedings of LLC Warcraft. The Debtor can be reached at: LLC Warcraft Worblentalstrasse 8 3063 Ittigen Berne 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 ============= ENCORE LLC: Creditors Must File Claims by January 18 ---------------------------------------------------- Creditors of LLC Enterprise Encore (code EDRPOU 30153650) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 24/669-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Enterprise Encore Obolonskiy Avenue 32 04205 Kyiv Region Ukraine KURENI TRANS: Creditors Must File Claims by January 18 ------------------------------------------------------ Creditors of LLC Kureni Trans (code EDRPOU 25198500) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 16, 2006, after finding it insolvent. The case is docketed under Case No. 15/715-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Kureni Trans Berezhanskaya Str. 15 04201 Kyiv Region Ukraine MIA PODIYA: Creditors Must File Claims by January 18 ---------------------------------------------------- Creditors of LLC Mia Podiya (code EDRPOU 31175937) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company after finding it insolvent. The case is docketed under Case No. 15/716-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Mia Podiya Frunze Str. 152, ap. 28 Kyiv Region Ukraine NTS LLC: Creditors Must File Claims by January 18 ------------------------------------------------- Creditors of LLC NTS (code EDRPOU 30045687) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 24/668-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC NTS Obolonskiy Avenue 23-a 04205 Kyiv Region Ukraine PRIMA LOTOS: Creditors Must File Claims by January 18 ----------------------------------------------------- Creditors of LLC Prima Lotos have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 24/666-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Prima Lotos Vyshgorodskaya Str. 16 04074 Kyiv Region Ukraine ROST-MAR LLC: Creditors Must File Claims by January 18 ------------------------------------------------------ Creditors of LLC Rost-Mar (code EDRPOU 33611586) have until Jan. 18 to submit written proofs of claim to: I. Yasnogor, Liquidator p.o.b. 2350 49040 Dniepropetrovsk Region Ukraine Tel: (0562)318-212 The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company on Dec. 14, 2006, after finding it insolvent. The case is docketed under Case No. B 15/240-06. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor can be reached at: LLC Rost-Mar Topolya-1 15 49000 Dniepropetrovsk Region Ukraine UKRAINIAN INDUSTRIAL: Creditors Must File Claims by January 18 -------------------------------------------------------------- Creditors of LLC Ukrainian Industrial Power Resources (code EDRPOU 31486881) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 16, 2006, after finding it insolvent. The case is docketed under Case No. 15/717-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Ukrainian Industrial Power Resources Obolonskiy Avenue 23-a 04205 Kyiv Region Ukraine UKRAINIAN SECONDARY: Creditors Must File Claims by January 18 ------------------------------------------------------------- Creditors of LLC Ukrainian Secondary Resources (code EDRPOU 30683019) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 16, 2006, after finding it insolvent. The case is docketed under Case No. 15/714-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Ukrainian Secondary Resources Avtozavodskaya Str. 18 04074 Kyiv Region Ukraine UKRPOLYMERPAK LLC: Creditors Must File Claims by January 18 ----------------------------------------------------------- Creditors of LLC Ukrpolymerpak (code EDRPOU 25264881) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 16, 2006, after finding it insolvent. The case is docketed under Case No. 15/712-b. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Debtor can be reached at: LLC Ukrpolymerpak Kozakov Avenue 6 Krasnych 04073 Kyiv Region Ukraine ZERNOSOYUZ LLC: Creditors Must File Claims by January 18 -------------------------------------------------------- Creditors of LLC Zernosoyuz (code EDRPOU 30867818) have until Jan. 18 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kyiv Region Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 24/667-b. The Debtor can be reached at: LLC Zernosoyuz Skliarenko Str. 5 04073 Kyiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln --------------------------------------------------------------- Arrow Electronics Inc. has signed a definitive agreement pursuant to which Arrow will acquire substantially all of the assets and operations of the Agilysys KeyLink Systems Group for US$485 million in cash. Arrow will also enter into a long-term procurement agreement with the Agilysys Enterprise Solutions Group, Agilysys' value- added reseller business. Based in Cleveland, Ohio, KeyLink is a leading value-added distributor of enterprise servers, storage and software in the United States and Canada. Through approximately 500 employees, KeyLink provides complex solutions from industry leading manufacturers to more than 800 reseller partners. Pro forma sales for the 2006 calendar year are expected to be approximately US$1.6 billion, which include revenues that will be associated with the above-mentioned procurement agreement. "With this acquisition, we will become the leading distributor of enterprise products for both International Business Machines Corp. and Hewlett Packard Company, as well as the leading value- added distributor of storage and software," stated William E. Mitchell, Chairman, President and Chief Executive Officer of Arrow Electronics, Inc. "Keylink is a natural complement to our existing enterprise computing solutions business with its value- added approach and its resellers' focus on small and medium sized customers." "Our partnership will create significant cross selling opportunities to further accelerate our growth in the global enterprise computing solutions distribution market," stated M. Catherine Morris, president, Arrow Enterprise Computing Solutions. All field sales positions will remain intact to ensure that we will continue to provide our customers and suppliers with superior levels of service." "We believe KeyLink will further benefit from Arrow's considerable global scale, vast customer base, strong financial resources and leadership in the technology distribution market," said Arthur Rhein, chairman, president and chief executive officer of Agilysys. "As a result of this transaction, both Agilysys and Keylink will be better positioned to achieve their full potential as Agilysys focuses solely on growing its information technology solutions business. We wish Arrow well as they continue to grow their business," added Mr. Rhein. "The acquisition is expected to be US$0.18 to US$0.22 accretive in the first 12 months and will further strengthen our industry leading return on invested capital, while generating an expected US$30 million in operating cash flow annually," added Paul J. Reilly, senior vice president and chief financial officer of Arrow Electronics, Inc. The transaction, which will be funded with cash-on-hand plus borrowings under Arrow's existing committed liquidity facilities, is subject to customary closing conditions, including obtaining the necessary government approvals, and is expected to be completed within 90 days. Goldman, Sachs & Co. acted as financial advisor and Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to Arrow in connection with this transaction. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Europe, the company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Great Britain, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands and the U.K. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops -------------------------------------------------------------- Arrow Electronics Inc. has completed its previously disclosed acquisition of the storage and security distribution business of InTechnology plc for a purchase price of around US$80 million. "The acquisition of InTechnology's storage and security distribution business enables us to further expand our Enterprise Computing Solutions business into the United Kingdom, Europe's second largest IT market," stated M. Cathy Morris, president, Arrow Enterprise Computing Solutions. "We expect this transaction to create further opportunities for us in the growing storage and security software markets. We expect this transaction to be US$.02 to US$.04 accretive in 2007." InTechnology Distribution, which is headquartered in Harrogate, England and has approximately 200 employees, delivers storage and security solutions to value-added resellers in the United Kingdom. Total 2006 sales are expected to exceed US$400 million. "The addition of InTechnology's storage and security distribution business is a key strategic step towards our goal of becoming the preeminent provider of enterprise computing solutions in Europe," stated Kurt Schoeffer, managing director, DNS. "This transaction will enable us to provide a more comprehensive suite of solutions for our reseller customers," added Steve Pearce, chief operating officer, InTechnology plc. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Europe, the company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Great Britain, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands and the U.K. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition ---------------------------------------------------------------- Fitch Ratings expects that Arrow Electronics Inc.'s proposed acquisition of Agilysys Keylink Systems Group for US$485 million in cash will not affect the company's ratings or Positive Rating Outlook. However, Fitch believes further meaningful debt-financed acquisitions could result in a revision of Arrow's Rating Outlook to Stable or negative rating actions. Fitch currently rates Arrow as: -- Issuer Default Rating of BB+; -- Senior unsecured notes of BB+; and -- Senior unsecured bank credit Facility of BB+. Arrow recently announced that it has entered into a definitive agreement to acquire substantially all the assets of Keylink, a leading enterprise and computing solutions distributor, from Agilysys Inc. for US$485 million in cash. Simultaneously, Arrow entered into a long-term procurement agreement with Agilysis' value-added reseller business. With approximately US$1.6 billion of sales for calendar year 2006, pro forma for the Agilysis procurement agreement, Fitch believes the proposed acquisition will consolidate Arrow's already leading position in distributing enterprise computing solutions, and strengthen Arrow's exposure to Keylink's leading suppliers, International Business Machines and Hewlett Packard. In addition, Arrow expects Keylink to generate approximately 5.5%-6.0% operating EBIT margins in 2007, including expectations for modest cost reductions, which would be accretive to Arrow's corporate-wide profitability, which Fitch estimates was at 4.7% for the latest 12 months ended Sept. 30, 2006. While recognizing these anticipated positives, this transaction, if consummated, would be Arrow's fifth acquisition over the past year and the first to be debt-financed. Including expectations for positive free cash flow for the fourth quarter ended Dec. 31, 2006, but with just US$253 million of cash and cash equivalents as of Sept. 30, 2006, Fitch expects Arrow will fund the majority of the purchase price with either its US$600 million senior unsecured revolving credit facility expiring June 2010 and/or US$550 million accounts receivable securitization facility expiring February 2008, both of which were undrawn as of Sept. 30, 2006. Nonetheless, even assuming the transaction is fully funded with borrowings under these facilities, total debt adjusted for rent expense to operating EBITDAR will remain below 3.0 times. Fitch believes that Arrow will continue to pursue acquisition opportunities, mainly in the more fragmented global enterprise computing market, which, depending on materiality, could pressure Fitch's Positive Rating Outlook in the future. COLLINS & AIKMAN: Court Approves Deferral of Interest Payments -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan has approved, on an interim basis, the request of Collins & Aikman Corp. and its debtor-affiliates to further defer adequate protection payments to their senior, secured prepetition lenders. In the absence of prior payment or an order to the contrary, the Debtors will be obligated to make the Deferred Payments on Feb. 1, 2007. The motion will be heard on a final basis on Jan. 11, 2007, or to another date to which the motion is continued. As reported, the Court approved the JPMorgan Chase Bank debtor- in-possession financing motion on an interim basis on the Petition Date, and approved the JPMorgan DIP Motion on a final basis on July 28, 2005. The postpetition interest payments and letter of credit fees, other than fronting fees, payable under paragraph 11 of the final DIP order are approximately US$7,200,000 per month. On Aug. 29, 2006, the Court approved of the Debtors' request to defer their obligation to pay postpetition interest and letter or credit fees, other than fronting fees, to Jan. 1, 2007. As the Court is aware, the Debtors have determined that the best course of action to maximize the value of their assets is to effectuate sales of their businesses as going concerns, given the existing market conditions, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, New York, says. The Debtors, the agent for the prepetition lenders, and the Debtors' major customers are negotiating an agreement under which the customers will provide the Debtors with substantial financial and other accommodations as well as an agreement on the terms of a Chapter 11 plan. Mr. Schrock notes that since the inception of the Debtors' Chapter 11 cases, their use of cash continues to be a crucial item for the estates. Payment of postpetition interest is a significant monthly obligation for the Debtors' estates. It is beyond dispute that the Prepetition Lenders are entitled to adequate protection for, among other things, use of their collateral and for the priming liens granted under the Final DIP Order, Mr. Schrock tells the Court. The Debtors intend to file a Chapter 11 plan under which the Debtors contemplate on paying the Prepetition Lenders from the cash proceeds received by the Debtors on account of the sale of their assets. Deferral of the payments will help ensure that the Debtors have sufficient liquidity to continue their restructuring and complete the sales of their businesses for the benefit of their estates, creditors, and parties-in-interest, Mr. Schrock asserts. The obligations of the Debtors to pay timely the adequate protection payments, other than the Deferred Payments, will not be affected. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) GREAT NORTHERN: Plans 155 Redundancies to Pay Franchise Fees ------------------------------------------------------------ Great North Eastern Railway is drawing up plans to cut jobs as it strives to meet the terms of its franchise agreement with the British government, according to Dan Milmo of the Guardian. The Guardian reports that GNER is considering 155 redundancies, out of a 3,100-strong GNER workforce. Mr. Milmo quotes a GNER spokesman as saying "We have not set out a specific number. But there will be a reduction in headcount. The quantum and timing is part of ongoing discussions with trade unions." The spokesman added that GNER hopes to achieve the job cuts through voluntary redundancies and a partial hiring freeze. According to the Guardian, GNER is missing revenue targets that underpin its pledge to pay the government GBP1.3 billion over the 10-year course of the franchise. Amid rising electricity prices and a fall in tourist numbers due to the July 7, 2006, bombings, it posted turnover growth of 3.3% in 2005, when 10% was needed. As widely reported, the government has agreed to tear up the franchise agreement and re-tender the right to run trains on the east coast line in two years' time. In the meantime, GNER will run the franchise on a fixed management contract while the government draws up a new tender and conducts an auction for a new operator. RMT to Strike The Rail Maritime and Transport union, which represents 1,500 of GNER's 3,100 workers, said it would resist any redundancies at the company, Haydn Lewis of The Press reports. According to the Press, RMT General Secretary Bob Crow said GNER gave us written confirmation of projected staffing levels under the 35-hour week deal, which would at least maintain existing staff numbers and would even increase the staff complement in some grades. Now it seems that the company has been telling the media that there will be redundancies. RMT has already made it clear that we will resist redundancies, with industrial action if necessary." A GNER spokesman was also quoted as saying "GNER's challenge is to maintain and build upon our high standards of service, reflected in record passenger satisfaction of 90 per cent, while delivering that service as efficiently as possible in line with our current franchise contract with Government. We have been in discussions with trade union partners for many months about how to maintain our high standards while becoming more efficient. There may be a modest reduction in overall numbers of employees but only after full consultation. This will be managed sensitively and progressively. No decisions have been taken on the size and timing of any changes, which will be subject to full consultation. GNER has not leaked any information to the media." Furthermore, according to the Press, Mr. Crow urged the Government to block any job cuts at the rail firm asserting that their priority remains to ensure that their members' jobs are not sacrificed to enable a privateer to dig itself out its financial crisis. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) 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. GREAT NORTHERN: To Appeal Rail Regulator's Open Access Order ------------------------------------------------------------ Great North Eastern Railway is taking its battle against "unlawful state aid" granted by United Kingdom's Office of Rail Regulation to Hull Trains and Grand Central Railway to the European Commission, reports Paul Rogerson of The Herald. The ORR is the economic regulator for the railway industry in Great Britain. The Herald disclosed that GNER wants the European Commission to investigate the ORR's decision to grant its rival train companies the right to run "open access" passenger services on the east coast route. GNER argues that its rivals will be charged less for access to the same rail network for the provision of equivalent services. According to The Herald, GNER said the present regime will result in the east coast franchise losing up to GBP9.7 million a year, at a time when its parent, Sea Containers, Ltd., is negotiating with government on the terms of GNER's franchise. GNER argues that all companies should pay an equivalent amount for access to the rail network for equivalent services. GNER previously challenged the ORR's decision in the High Court but failed to win its case, Mr. Rogerson adds. The Herald quotes GNER's Legal Director, Janet Huck, as saying, "We welcome competition and already operate on one of the most competitive travel routes in Britain. We have nothing against new entrants on the route, but competition should be on a level playing field. The current regime is unfair and will place franchise operators at a competitive disadvantage compared with open access operators who compete on the same track for the same passenger revenue. The commercial consequences of this unfairness are serious, so we have little option but to pursue further this important matter of principle." GNER won the franchise for the east coast route in 2005. GNER had agreed to pay GBP1.3 bilion to the Treasury over a seven- year franchise if performance targets are met. According to The Herald, senior directors at GNER say that the company's ability to pay that premium was called into question by the ORR's decision. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) 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. REFCO INC: Court Approves Settlement with JPMorgan Chase Bank ------------------------------------------------------------- The Hon. Robert D. Drain of the U.S. Southern District of New York has approved the Settlement Agreement and Mutual Release between Marc S. Kirschner, the Chapter 11 trustee for the estate of Refco Capital Markets, Ltd., and JPMorgan Chase Bank, N.A. Any and all related claims filed by JPMorgan against RCM and any other Debtors will be deemed disallowed and expunged, with prejudice, except the two JPMorgan claims asserted against Refco Capital LLC and Refco Group Ltd., LLC. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Service Inc. 215/945-7000) REFCO INC: Files Operating Results Statement for November 2006 -------------------------------------------------------------- In lieu of comprehensive financial statements, Refco Inc. and its debtor-affiliates delivered to the U.S. Bankruptcy Court for the Southern District of New York a statement of their cash receipts and disbursements for the period from Nov. 1 to 30, 2006. Peter F. James, controller of Refco, reports that the company held a US$1,575,010,000 cash balance at the start of the reporting period. Refco received US$407,890,000 and disbursed US$25,212,000 in cash. Refco's ending cash balance totals US$1,957,687,000. As paying agent for certain non-debtors and Refco, LLC, the Debtors disbursed approximately US$2,100,000. Mr. James discloses that Refco paid US$381,000 in gross wages, of which approximately US$167,000 was paid on behalf of and reimbursed by the Non-Debtors and Refco LLC. Refco also withheld US$117,000 in employee payroll taxes, of which US$8,000 was remitted to a third party vendor. Mr. James states that all taxes due and owing, as well as tax returns, have been paid and filed for the current period. Refco paid US$9,331,000 for professional fees for November, and US$105,008,000 since the Petition Date. The Debtors did not pay professional fees on Refco LLC's behalf. Mr. James says all insurance policies are fully paid for the current period, including amounts owed for workers' compensation and disability insurance. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service Inc. 215/945-7000) SEA CONTAINERS: Wants to Hire Vollman as Special Advisors ---------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the District of Delaware to employ Vollman Brothers Ltd., formerly known as Artemis Corporate Finance, as their special corporate and financial advisors, nunc pro tunc to Oct. 15, 2006. Robert D. MacKenzie, president and chief executive officer of Sea Containers Ltd., discloses that Vollman Brothers is a corporate finance advisory firm that provides, among others, restructuring and transactions services to blue-chip clients. The firm has served as the Debtors' corporate and financial advisors relating to the sale and disposal of certain non-core businesses and assets since June 2006. Mr. Mackenzie says Vollman Brothers is well equipped to represent the Debtors given that the firm has developed institutional knowledge and an understanding of their businesses, assets, operations, systems, and capital structure. As the Debtors' Special Advisors, Vollman Brothers will: (1) advise the Debtors on the disposal of selected businesses; (2) provide the services of an internal corporate development department in relation to Advisory Projects and project management, concentrating particularly on the disposal of non-core businesses; (3) provide project management services in relation to certain corporate transactions for which the Debtors have appointed other advisers or is running a process internally; and (4) provide at the Debtors' behest, additional services as may be appropriate in its role as the Debtors' financial advisor, subject to the parties' agreeing to the basis of the additional services. Specifically, in connection with the Advisory Projects, Vollman Brothers will: (a) assist with bidder identification, assess bidder appetite, and communicate with bidders as required; (b) coordinate and oversee the running of a disposal process, including project management; (c) assist with the preparation of an information memorandum; (d) illustratively valuate the businesses with reference to appropriate parameters; (e) review legal and tax structure advice provided by the Debtors internally and the Debtors' legal, accounting and tax advisers; (f) assist with data room preparation and completion of any vendor due diligence, if agreed in advance and in conjunction with the Debtors' legal, accounting and tax advisers; (g) assist with management presentations; and (h) assist with commercial and legal negotiations. With regard to the Project Management Projects, Vollman Brothers will review information memorandum, assist in identifying separation and consent issues, review and assess bids received, and review financial advice in connection with the disposals of the Debtors' Australia and New Zealand operations. As to the Corporate Development Role, Vollman Brothers will assist: (i) in relation to free cash flow analysis, funding analysis, reconciliation of group management accounts to local accounts and analysis of local intercompany accounts related to the Advisory Businesses; (ii) in determining the most effective strategy for maximizing value and free cash flows from disposing of the Advisory Businesses; (iii) in the development of revised business plans for the Advisory Businesses; (iv) in preparation of reports in relation to the non-core businesses to be presented to the Court and the Debtors' board; (v) in preparation of reports for the Official Committee of Unsecured Creditors and its advisors and interaction with the advisors on matters related to the Advisory Businesses; (vi) in communication and negotiation with outside constituents, including the Debtors, the banks and their advisors in relation to the Advisory Businesses; and (vii) with other matters as may be requested by the Debtors in writing that are mutually agreeable to the parties. Vollman Brothers will be paid for its services based on its customary billing practices: -- a monthly retainer of GBP125,000 payable monthly in advance; and -- a completion fee, subject to a minimum of GBP100,000 per transaction, in connection with any transaction that occurs either during the term of the firm's engagement or during a period of 12 months following the effective date of termination of its engagement. For each Transaction the Completion Fee will be: Total Consideration Completion Fee ------------------- -------------- GBP1,000,000 to GBP5,000,000 5.0% GBP5,000,000 to GBP10,000,000 3.0% GBP10,000,000 to GBP15,000,000 2.5% GBP15,000,000 to GBP20,000,000 2.0% GBP20,000,000 to GBP50,000,000 1.0% In addition, for any Transaction relating to Project Management, Vollman Brothers will receive a Completion Fee of GBP18,000 for each Transaction involving one of the Debtors' Australia and New Zealand businesses. As to any additional work, Vollman Brothers will be entitled to an agreed upon fee for each piece of work based on standard market rates for the work completed. Bill Kendall, managing director of Vollman Brothers, relates that his firm received payments of GBP1,114,258 within 90 days of the Petition Date. The firm will hold any amounts received prepetition in excess of fees and expenses that accrued prepetition, if any, and apply the excess amounts to postpetition fees and expenses. The Debtors will indemnify Vollman Brothers in certain circumstances relating to its engagement. The firm has agreed not to assert any defense based on jurisdiction, venue, abstention, or otherwise to the Bankruptcy Court's jurisdiction and venue to determine any controversy in any way related to Vollman Brothers' engagement. Mr. Kendall informs Judge Carey that it is not the general practice of corporate advisory firms to keep detailed time records; however, the Vollman Brothers' employees involved in the Chapter 11 cases will keep time records describing their general daily activities, the identity of persons who performed the activities, and the estimated amount of time expended on the activities in half hour increments. Accordingly, to the extent necessary, the Debtors seek a waiver of the information requirements of Rule 2016-2(d) of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware. Mr. Kendall assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Vollman Brothers has no connection with, and holds no interest adverse to, the Debtors or their estates in the matters on which it is to be engaged, Mr. Kendall adds. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Train Unit Plans 155 Redundancies to Pay Fees ------------------------------------------------------------- Great North Eastern Railway is drawing up plans to cut jobs as it strives to meet the terms of its franchise agreement with the British government, according to Dan Milmo of the Guardian. The Guardian reports that GNER is considering 155 redundancies, out of a 3,100-strong GNER workforce. Mr. Milmo quotes a GNER spokesman as saying "We have not set out a specific number. But there will be a reduction in headcount. The quantum and timing is part of ongoing discussions with trade unions." The spokesman added that GNER hopes to achieve the job cuts through voluntary redundancies and a partial hiring freeze. According to the Guardian, GNER is missing revenue targets that underpin its pledge to pay the government GBP1,300,000,000 over the 10-year course of the franchise. Amid rising electricity prices and a fall in tourist numbers due to the July 7 bombings, it posted turnover growth of 3.3% in 2005, when 10% was needed. As widely reported, the government has agreed to tear up the franchise agreement and re-tender the right to run trains on the east coast line in two years' time. In the meantime, GNER will run the franchise on a fixed management contract while the government draws up a new tender and conducts an auction for a new operator. RMT to Strike The Rail Maritime and Transport union, which represents 1,500 of GNER's 3,100 workers, said it would resist any redundancies at the company, Haydn Lewis of The Press reports. According to the Press, RMT General Secretary Bob Crow said GNER gave us written confirmation of projected staffing levels under the 35-hour week deal, which would at least maintain existing staff numbers and would even increase the staff complement in some grades. Now it seems that the company has been telling the media that there will be redundancies. RMT has already made it clear that we will resist redundancies, with industrial action if necessary." A GNER spokesman was also quoted as saying "GNER's challenge is to maintain and build upon our high standards of service, reflected in record passenger satisfaction of 90 per cent, while delivering that service as efficiently as possible in line with our current franchise contract with Government. We have been in discussions with trade union partners for many months about how to maintain our high standards while becoming more efficient. There may be a modest reduction in overall numbers of employees but only after full consultation. This will be managed sensitively and progressively. No decisions have been taken on the size and timing of any changes, which will be subject to full consultation. GNER has not leaked any information to the media." Furthermore, according to the Press, Mr. Crow urged the Government to block any job cuts at the rail firm asserting that their priority remains to ensure that their members' jobs are not sacrificed to enable a privateer to dig itself out its financial crisis. About GNER 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. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Train Unit Appeals on Regulator's Access Order -------------------------------------------------------------- Great North Eastern Railway is taking its battle against "unlawful state aid" granted by United Kingdom's Office of Rail Regulation to Hull Trains and Grand Central Railway to the European Commission, reports Paul Rogerson of The Herald. The ORR is the economic regulator for the railway industry in Great Britain. The Herald disclosed that GNER wants the European Commission to investigate the ORR's decision to grant its rival train companies the right to run "open access" passenger services on the east coast route. GNER argues that its rivals will be charged less for access to the same rail network for the provision of equivalent services. According to The Herald, GNER said the present regime will result in the east coast franchise losing up to GBP9,700,000 a year, at a time when its parent, Sea Containers, Ltd., is negotiating with government on the terms of GNER's franchise. GNER argues that all companies should pay an equivalent amount for access to the rail network for equivalent services. GNER previously challenged the ORR's decision in the High Court but failed to win its case, Mr. Rogerson adds. The Herald quotes GNER's Legal Director, Janet Huck, as saying, "We welcome competition and already operate on one of the most competitive travel routes in Britain. We have nothing against new entrants on the route, but competition should be on a level playing field. The current regime is unfair and will place franchise operators at a competitive disadvantage compared with open access operators who compete on the same track for the same passenger revenue. The commercial consequences of this unfairness are serious, so we have little option but to pursue further this important matter of principle." GNER won the franchise for the east coast route in 2005. GNER had agreed to pay GBP1,300,000,000 to the Treasury over a seven- year franchise if performance targets are met. According to The Herald, senior directors at GNER say that the company's ability to pay that premium was called into question by the ORR's decision. About GNER 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. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Board Approves Salary Increases for Executives ----------------------------------------------------------- In a filing with the U.S. Securities and Exchange Commission, Solutia Inc., disclosed that, based on recommendations of the Executive Compensation and Development Committee of its Board of Directors, the Board approved base salary increases for certain executive officers. The new annual base salaries for the executive officers, effective Jan. 1, 2007, are: Executive Annual Base Salary --------- ----------------- James M. Sullivan US$412,500 Senior Vice President, Chief Financial Officer and Treasurer Luc De Temmerman 405,000 Senior Vice President and President - Performance Products Jonathon P. Wright 405,000 Senior Vice President and President - Integrated Nylon James R. Voss 351,000 SVP of Business Operations The Board of Directors has also authorized Solutia to seek Court approval of a salary increase for Jeffry N. Quinn, president, chief executive officer and chairman of the Board, as well as certain adjustments to his employment agreement. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Calpine Has Until Jan. 22 to Decide on Leases ---------------------------------------------------------- Solutia Inc. and its debtor-affiliates have consented to a further extension of the time within which Decatur Energy Center LLC, Calpine Corp., and its affiliates, must assume or reject certain leases, through and including April 24, 2007, in their Chapter 11 cases pending before the U.S. District Court for the Southern District of New York. The leases and agreements to which Decatur and Solutia are parties to, relate to: (a) Decatur's cogeneration power project at Solutia's plant in Decatur, Alabama; and Third amended and restated lease, shared services and water supply agreement -- principal agreement --, dated as of June 1, 2004; and certain contracts relating to switching station equipment. (b) Decatur's power project and the Principal Agreement; and Ground lease addendum; Shared services addendum; and Water supply addendum, all dated as of June 1, 2004. (c) other agreements that constitute leases of non-residential real property. This is the third stipulation approved by the New York Court with respect to the Leases decision time extension. Solutia had earlier agreed to Calpine's request for time extension to assume or reject the Leases until Oct. 20, 2006, and then again, until Jan. 22, 2007. Solutia may withdraw from the Third Stipulation on 45 days' written notice to Calpine and their counsel. Pursuant to Section 365(d)(4) of the Bankruptcy Code, upon expiration of the 45-day notice period, the Leases will be deemed rejected, unless Calpine files a motion to assume the Leases before the expiration of the notice period. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) ********* 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 P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors. Copyright 2007. 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$625 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 * * *