/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070109.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, January 9, 2007, Vol. 8, No. 6 Headlines A U S T R I A A. BIEBER: Property Manager Declares Insufficient Assets AINEDTER DORIS: Creditors' Meeting Slated for January 16 ASA VERSICHERUNGSMAKLER: Linz Court Orders Business Shutdown BACKEREITECHNIK PREGESBAUER: Court Orders Business Shutdown CHRISTIAN HEISSENBERGER: Vienna Court Orders Business Shutdown HALLER KRANKENTRANSPORTE: Creditors' Meeting Slated for Jan. 17 KURT UNTERBERGER: Creditors' Meeting Slated for January 17 MK PROMOTION: Creditors' Meeting Slated for January 16 SUCCESS 2005: Fitch Affirms BB Rating on EUR8.5-Million Notes TSI-TISCHLEREI: Creditors' Meeting Slated for January 16 W.M.P. LLC: Wiener Neustadt Court Orders Business Shutdown B E L G I U M ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility GOODYEAR TIRE: Fitch Removes Low-B Ratings from Watch Negative C Z E C H R E P U B L I C ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing F R A N C E ALCATEL-LUCENT: Sells Transport Unit to Thales SA for EUR1.7 Bln ARROW ELECTRONICS: Highlights Business Achievements in 2006 PHILLIPS-VAN HEUSEN: Completes US$110-Mln Acquisition of Superba POLYMER GROUP: Consolidating U.S. Manufacturing to Lower Costs G E R M A N Y AUTOTEILE ZINK: Claims Registration Ends January 16 DAIMLERCHRYSLER AG: Chrysler Arm to Double International Sales DAIMLERCHRYSLER AG: Plans to Build Assembly Site in India DIALOG2 GMBH: Claims Registration Ends January 17 DISC-SPEZIAL: Claims Registration Ends January 15 FOERSTER GMBH: Claims Registration Ends January 16 FREIE ALTEN: Claims Registration Ends January 16 GG EXKLUSIVHAUS: Creditors' Meeting Slated for January 17 HAUS & MEHR: Creditors' Meeting Slated for January 19 HI-FI-WERKSTATT: Claims Registration Ends January 15 HOGA GMBH: Claims Registration Ends January 16 KRIETER SPORT: Claims Registration Ends January 15 VOLKSWAGEN AG: Wolfgang Bernhard May Leave Post, Report Says VOLKSWAGEN AG: Records 3.4 Million Vehicle Deliveries in 2006 WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1 WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating H U N G A R Y AES CORP: Increases Revolving Credit Facility to US$750 Million I T A L Y PARMALAT SPA: Supreme Court Confirms Marzano Law's Legitimacy PARMALAT SPA: Shares Allocation Prompts EUR374,185 Capital Hike SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8 SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch K A Z A K H S T A N ARMAN LLP: Creditors Must File Claims by Feb. 13 DANKAMTU OJSC: Proof of Claim Deadline Slated for Feb. 13 ELENA LLP: Claims Filing Period Ends Feb. 13 ENERGOSERVICE CO: Claims Bar Date Slated for Feb. 13 ENERGOTECHSERVICE-2030 LLP: Court Begins Bankruptcy Proceedings EURO SPEN: Claims Filing Period Ends Feb. 9 GLOBAL TRADING: Claims Registration Ends Feb. 9 IVANOV & K: Proof of Claim Deadline Slated for Feb. 13 KAMKOR LLP: Creditors Must File Claims by Feb. 13 SP ROSKAZHLEB: Claims Registration Ends Feb. 13 K Y R G Y Z S T A N ALCAPS LLC: Creditors Meeting Scheduled for Jan. 12 CLEARING CENTRE: Creditors' Meeting Scheduled for Jan. 11 ORIOLE IVOLGA: Creditors' Meeting Slated for Jan. 12 VOSTOK LLC: Public Auction Slated for Jan. 12 L U X E M B O U R G DANA CORP: Wants to Increase DIP Loan & Restructure Europe Biz DANA CORP: Has Until Sept. 3 to File Restructuring Plan DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement NORTEL NETWORKS: Closes US$320MM Unit Sale to Alcatel-Lucent N E T H E R L A N D S HERBALIFE LTD: Expects Higher Sales for 2006 Fourth Quarter TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend N O R W A Y AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio R U S S I A CHRYSOLITE CJSC: Creditors Must File Claims by Jan. 16 CHUVASH-ALCO OJSC: Creditors Must File Claims by Jan. 16 COMPANY-WEST OJSC: Creditors Must File Claims by Jan. 16 COMPUTER LAND: Creditors Must File Claims by Jan. 16 DAL-TRANS-STORY OJSC: Creditors Must File Claims by Jan. 16 ENEGRO-OIL CJSC: Creditors Must File Claims by Jan. 16 EURO-ASIATIC METALLURGIC: Creditors Must File Claims by Jan. 16 ISTOK CJSC: Court Starts Bankruptcy Supervision Procedure MOSCOW-KUBAN-CHELYABINSK: Creditors Must File Claims by Jan. 16 NAMED AFTER: Kurgan Bankruptcy Hearing Slated for Feb. 28 PEAT-SERVICE CJSC: Creditors Must File Claims by Jan. 16 PRIONEZHSKIY WOOD: Creditors Must File Claims by Feb. 16 TRANSPORT ENTERPRISE: Bankruptcy Hearing Slated for March 29 VYSHNEVOLOTSKIY TEXTILE: Bankruptcy Hearing Slated for April 25 S W I T Z E R L A N D BH OEKO-BAU: Zug Court Starts Bankruptcy Proceedings CLIENT-SERVER EDV: Eglisau Court Starts Bankruptcy Proceedings FIDELIUS JSC: Zug Court Suspends Bankruptcy Proceedings GROUPE MOBILITE: Zug Court Suspends Bankruptcy Proceedings MORTEZAWI BUILDING: Zug Court Starts Bankruptcy Proceedings NOVELIS INC: Noteholders Swap US$1.4 Billion Notes for New Debt OBERDORF-APOTHEKE BAAR: Zug Court Starts Bankruptcy Proceedings RAUL RICARDO: Schlieren Court Starts Bankruptcy Proceedings RIET-GARAGE JSC: Court Starts Bankruptcy Proceedings VARIA HOLDING: Zug Court Starts Bankruptcy Proceedings VXG VERMOGENSVERWALTUNG: Court Starts Bankruptcy Proceedings U K R A I N E KERCHLIFT: Claims Submission Deadline Set January 18 KOZACHOK OJSC: Creditors Must File Claims by January 18 KRASNOGORSKOE CJSC: Creditors Must File Claims by January 18 LAN CJSC: Creditors Must File Claims by January 18 NVP SOLAR: Creditors Must File Claims by January 18 TECO-BUD LLC: Creditors Must File Claims by January 18 TH DISKONTI: Creditors Must File Claims by January 18 YABLUNEVE CJSC: Creditors Must File Claims by January 18 U N I T E D K I N G D O M ADVANCED MARKETING: Organizational Meeting Scheduled for Friday AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio ARROW ELECTRONICS: Highlights Business Achievements in 2006 AVISTAR COMMS: Inks New US$10-Million Revolving Credit Facility BALDOR ELECTRIC: S&P Assigns BB- Corporate Credit Rating COLLINS & AIKMAN: Has Until March 14 to Decide on Becker Leases COLLINS & AIKMAN: Can File ASC Inc. License Pact Under Seal DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent DURA AUTOMOTIVE: Wants to Pay US$1.1-Mln Prepetition Tax Claims FORD MOTOR: Strong Brazilian Ops Spurs Group to Invest US$1 Bln INCO LTD: Completes Merger with Itabira Canada INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes LAMBDA FINANCE: S&P Puts Low-B Ratings on Six Note Classes LITTLE CHEF: Brings In PricewaterhouseCoopers as Administrator REFCO INC: Court Allows Ch. 11 Trustee to Modify Claims vs. RCM SEA CONTAINERS: Wants Until June 12 to File Reorganization Plan SEA CONTAINERS: Wants Until May 13 to Decide on Leases SEA CONTAINERS: Taps Towers Perrin as Compensation Consultants SMARTIRE SYSTEMS: Oct. 31 Equity Deficit is US$34.8 Million SOLUTIA INC: Can Sell Property to Shintech for US$7.1 Million WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1 WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating * Huron Consulting Group Agrees to Acquire Glass & Associates * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= A. BIEBER: Property Manager Declares Insufficient Assets -------------------------------------------------------- Dr. Andreas Alzinger, the court-appointed property manager for LLC A. Bieber (FN 84492d), declared Nov. 16, 2006, that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 11, 2006 (Bankr. Case No. 5 S 5/06d). The property manager can be reached at: Dr. Andreas Alzinger Karntner Ring 12 1010 Vienna, Austria Tel: 516 20 Fax: 512 46 55 E-mail: a.alzinger@baierlambert.com AINEDTER DORIS: Creditors' Meeting Slated for January 16 -------------------------------------------------------- Creditors owed money by LLC Ainedter Doris (FN 248858v) are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 16 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 16, 2006 (Bankr. Case No. 4 S 162/06k). Andrea Simma serves as the court-appointed property manager of the bankrupt estate. Katharina Widhalm Budak represents Dr. Simma in the bankruptcy proceedings. The property manager can be reached at: Dr. Andrea Simma c/o Dr. Katharina Widhalm Budak Schulerstrasse 18 1010 Vienna, Austria Tel: 513 67 03 Fax: 513 67 03 33 E-mail: ra_simma@aon.at ASA VERSICHERUNGSMAKLER: Linz Court Orders Business Shutdown ------------------------------------------------------------ The Land Court of Linz entered Nov. 14, 2006, an order shutting down the business of LLC ASA Versicherungsmakler (FN 208475g). Court-appointed property manager Thomas Zeitler 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. Thomas Zeitler Eisenhandstrasse 15 4020 Linz, Austria Tel: 77 55 44-0 Fax: 77 55 44-10 E-mail: insolvenz@bzp.at Headquartered in Traun, Austria, the Debtor declared bankruptcy on Sept. 18, 2006 (Bankr. Case No. 38 S 42/06i). BACKEREITECHNIK PREGESBAUER: Court Orders Business Shutdown ----------------------------------------------------------- The Land Court of Krems an der Donau entered Nov. 15, 2006, an order shutting down the business of LLC Backereitechnik Pregesbauer (FN 32727d). Court-appointed property manager Alois Autherith 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. Alois Autherith Utzstrasse 13 3500 Krems, Austria Tel: 02732/83485 Fax: 02732/83485-10 E-mail: advoc.autham@netway.at Headquartered in Hadersdorf am Kamp, Austria, the Debtor declared bankruptcy on Nov. 8, 2006 (Bankr. Case No. 9 S 58/06m). CHRISTIAN HEISSENBERGER: Vienna Court Orders Business Shutdown -------------------------------------------------------------- The Trade Court of Vienna entered Nov. 15, 2006, an order shutting down the business of LLC Christian Heissenberger (FN 117916g). Court-appointed property manager Susi Pariasek 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. Susi Pariasek c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna, Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 25, 2006 (Bankr. Case No. 4 S 153/06m). Beate Holper represents Dr. Pariasek in the bankruptcy proceedings. HALLER KRANKENTRANSPORTE: Creditors' Meeting Slated for Jan. 17 --------------------------------------------------------------- Creditors owed money by LLC Haller Krankentransporte (FN 196130b) are encouraged to attend the creditors' meeting at 11:00 a.m. on Jan. 17 to consider the adoption of the rule by revision. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 7, 2006 (Bankr. Case No. 4 S 99/06w). Christian Bachmann serves as the court-appointed property manager of the bankrupt estate. Eva-Maria Bachmann-Lang represents Dr. Bachmann in the bankruptcy proceedings. The property manager can be reached at: Dr. Christian Bachmann c/o Dr. Eva-Maria Bachmann-Lang Opernring 8 1010 Vienna, Austria Tel: 512 87 01 Fax: 513 82 50 E-mail: bachmann.rae@aon.at KURT UNTERBERGER: Creditors' Meeting Slated for January 17 ---------------------------------------------------------- Creditors owed money by LLC Kurt Unterberger Transport (FN 74090g) are encouraged to attend the creditors' meeting at 10:40 a.m. on Jan. 17 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Land Court of Leoben Hall 4 1st Floor Leoben, Austria Headquartered in Bruck an der Mur, Austria, the Debtor declared bankruptcy on Nov. 6, 2006 (Bankr. Case No. 17 S 83/06h). Michael Zsizsik serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Michael Zsizsik Hauptplatz 23 8600 Bruck an der Mur, Austria Tel: 03862-51317 Fax: 03862-53797 E-mail: info@zsisik.at MK PROMOTION: Creditors' Meeting Slated for January 16 ------------------------------------------------------ Creditors owed money by LLC MK Promotion Handels (FN 257422m) are encouraged to attend the creditors' meeting at 11:25 a.m. on Jan. 16 to consider the adoption of the rule by revision and final decision. Martin Brandstetter, the court-appointed property manager offered 3.1% recovery on creditors' proofs of claim. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 2nd Floor (Old Building) St. Poelten, Austria Headquartered in Amstetten, Austria, the Debtor declared bankruptcy on Nov. 14, 2005 (Bankr. Case No. 14 S 204/05y). The property manager can be reached at: Dr. Martin Brandstetter Hoffmann Center Bahnhofstrasse 2 3300 Amstetten, Austria Tel: 07472/61122 Fax: 07472/61122-4 E-mail: office@ra-brandstetter.at SUCCESS 2005: Fitch Affirms BB Rating on EUR8.5-Million Notes ------------------------------------------------------------- Fitch Ratings affirmed Success 2005 B.V. notes: -- Class A EUR390.6 million (ISIN XS0230700493) at AAA; -- Class B EUR8.5 million (ISIN XS0230700816) at A; -- Class C EUR8.5 million (ISIN XS0230701202) at BBB; and -- Class D EUR8.5 million (ISIN XS0230701467) at BB. The rating action follows a satisfactory review of the deal's performance. The overall performance of Success 2005 to date compares favorably with Fitch's base case expectations set at closing. No triggers have been breached since issuance and Fitch expects the stable performance to continue. In addition to the above-mentioned considerations, Fitch confirmed the rating levels for the respective classes of notes in view of the proposed merger between Hypovereinsbank AG and the UniCredit Group. TSI-TISCHLEREI: Creditors' Meeting Slated for January 16 -------------------------------------------------------- Creditors owed money by LLC TSI-Tischlerei-Sanierung-Innenausbau (FN 205022d) are encouraged to attend the creditors' meeting at 9:00 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 St. Poelten-Wagram, Austria, the Debtor declared bankruptcy on Nov. 16, 2006 (Bankr. Case No. 14 S 187/06z). Georg Thum serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Dr. Georg Thum Josefstrasse 13 3100 St. Poelten, Austria Tel: 02742/72 222 Fax: 02742/72 222-10 E-mail: kanzlei@tws-rae.at W.M.P. LLC: Wiener Neustadt Court Orders Business Shutdown ---------------------------------------------------------- The Land Court of Wiener Neustadt entered Nov. 15, 2006, an order shutting down the business of LLC W.M.P. (FN 261468m). Court-appointed property manager Viktor Igali-Igalffy 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. Viktor Igali-Igalffy Bruehlerstrasse 63 2340 Moedling, Austria Tel: 02236/45240 Fax: 02236/45240-22 E-mail: vii@aon.at Headquartered in Laxenburg, Austria, the Debtor declared bankruptcy on July 28, 2006 (Bankr. Case No. 10 S 66/06v). ============= B E L G I U M ============= ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing -------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to the proposed financing of the leveraged buyout of ARAMARK Corp. Moody's concurrently downgraded to B3 from B2 the rating on the existing 5% senior notes due 2012 of ARAMARK Services, Inc., a wholly owned subsidiary of ARAMARK Corp. (Old). This concludes a review for possible downgrade initiated on May 1, 2006. The rating outlook is stable. Rating actions: Ratings/(Assessments) assigned: * ARAMARK (Newco): -- U$600-million secured revolving credit facility due 2013, (P)Ba3 (LGD3, 32%); -- US$3.660-billion secured term loan due 2014, (P)Ba3 (LGD3, 32%); -- US$250-million secured synthetic letter of credit facility due 2013, (P)Ba3 (LGD3, 32%); -- US$1.7-billion senior unsecured notes due 2015, (P)B3 (LGD5, 80%); -- US$570-million senior subordinated notes due 2016, (P)B3 (LGD6, 93%); -- Corporate family rating, (P)B1; and -- Probability of Default rating, B1. These ratings/(assessments) are subject to Moody's review of final documentation. Ratings/(Assessments) downgraded: * ARAMARK (Old): -- Corporate Family Rating, to B1 from Ba3; -- Probability of Default rating, to B1 from Ba3; -- Senior unsecured shelf registration, to (P)B3 (LGD6, 96%) from (P)B2 (LGD6, 96%); and -- Senior subordinated shelf registration, to (P)B3 (LGD 6, 97%) from (P)B2 (LGD6, 97%). Ratings/(Assessments) downgraded: * ARAMARK Services: -- US$250-million senior unsecured notes due 2012, to B3 (LGD 6, 96%) from B2 (LGD6, 96%); -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%) from (P)B2 (LGD6, 96%); and -- Senior subordinated shelf registration, to (P)B3 (LGD 6, 97%) from (P)B2 (LGD6, 97%). Ratings affirmed: * ARAMARK Services: -- US$300 million senior unsecured notes due 2007, Baa3; -- US$31 million senior unsecured notes due 2007, Baa3; and -- US$300 million senior unsecured notes due 2008, Baa3. The review of the ratings was initiated on May 1, 2006, following the announcement that the company had received a proposal to be acquired in a leveraged buyout led by its chairman and private equity investors GS Capital Partners, J.P. Morgan Capital Partners, CCMP Capital Partners, Thomas H. Lee Partners and Warburg Pincus LLC. On Aug. 8, 2006, the board of directors of ARAMARK approved a definitive merger agreement. The merger is valued at approximately US$8.6 billion, including the assumption or repayment of approximately US$2.1 billion of existing debt, and is expected to close in the first quarter of 2007. The merger is expected to be financed with a US$3.66-billion secured term loan, US$1.7-billion of senior unsecured notes, US$570 million of senior subordinated notes and an equity contribution of US$2.1 billion. The company has received commitments to increase the size of its receivable securitization facility from US$225 million to US$250 million and expects to have US$225 million outstanding at closing. Moody's will withdraw the ratings on the senior notes due 2007-2008 upon the closing of the buyout since these notes are expected to be redeemed by the company. The existing corporate family rating of ARAMARK (Old) will also be withdrawn upon the closing of the buyout. The senior notes due 2012 will remain outstanding after the consummation of the buyout. The downgrade of the senior notes due 2012 reflects the structural subordination of these notes to high levels of secured and guaranteed debt in the post-acquisition capital structure. The provisional ratings of ARAMARK (Newco) will be converted into definitive ratings upon the closing of the buyout. The (P)B1 Corporate Family Rating is supported by the large size of the company, significant geographic, customer and service line diversification and good growth fundamentals. Financial strength will weaken significantly post-merger because of the approximately US$4.5 billion in incremental debt needed to fund the buyout. The ratings are constrained by cash flow, leverage and interest coverage metrics that are weak for the B1 rating category. The stable outlook reflects Moody's expectation of 2%-4% organic revenue growth and modest EBIT margin improvement over the next 12-24 months. Cash flow, leverage and interest coverage metrics are expected to remain weak for the rating category during this period. ARAMARK Corp., headquartered in Philadelphia, Pennsylvania, is one of the largest U.S. providers of food and support services to a variety of end markets across the country, including businesses, the educational and healthcare sectors, sports and entertainment venues and correctional institutions. The company also operates the second largest uniform and career apparel rental services and sales business in the U.S., catering to a diversified client portfolio through an extensive national service network. For the 12-month period ending Sept. 30, 2006, revenues were approximately US$11.6 billion. GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility ---------------------------------------------------------------- The Goodyear Tire & Rubber Co. plans to discontinue tire production at its facility in Valleyfield, Quebec. The company expects to be substantially complete with a transition of the Valleyfield facility to a materials mixing center by the end of the second quarter of 2007. There are around 1,000 hourly and salaried associates at the facility. The mixing center is expected to employ around 200 associates. The reduction in both capacity and labor in Valleyfield is related to the company's ongoing global strategy to reduce excess high cost manufacturing capacity. "In today's intensely competitive and increasingly global business environment, we face some very difficult choices," said Jon Rich, president of Goodyear's North American Tire business. "The decision to discontinue tire production at Valleyfield is one of those necessary steps to make Goodyear more competitive. This decision does not reflect on the commitment or performance of our Valleyfield associates." The elimination of tire production in Valleyfield will reduce Goodyear's excess high cost tire manufacturing capacity by an additional 7 million units. This brings total reductions under Goodyear's four-point cost savings plan to 21 million units compared with original targets of 15 to 20 million units by 2008. This action will result in total charges estimated to be between US$115 million and US$120 million (between US$165 and US$170 million after tax) for restructuring and accelerated depreciation, of which an expected US$40 million to US$45 million is cash. The charges associated with the intended action are expected to be between US$70 million to US$75 million (US$120 million to US$125 million after-tax) in the fourth quarter of 2006 with the balance of the charges impacting 2007. When complete, the action is expected to generate annual cost savings of approximately US$40 million. This initiative also supports Goodyear's four-point cost savings plan goal of reducing costs by between US$100 million and US$150 million. With the already announced closures of tire plants in: -- Washington, United Kingdom; -- Upper Hutt, New Zealand; and -- Tyler, Texas, the Valleyfield announcement yields a total of US$125 million in projected annual savings. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. The company's European operations is headquartered in Belgium. * * * As reported in the Troubled Company Reporter-Europe on Jan. 4, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and other ratings on Goodyear Tire & Rubber Co. and removed them from CreditWatch where they were placed with negative implications on Oct. 16, 2006, as a result of the labor dispute at several of the company's North American plants. GOODYEAR TIRE: Fitch Removes Low-B Ratings from Watch Negative -------------------------------------------------------------- Fitch Ratings affirmed ratings for The Goodyear Tire & Rubber Company and removed the ratings from Rating Watch Negative. The ratings were placed on Rating Watch Negative on Oct. 18, 2006, when the company announced a US$975 million drawdown of its bank revolver. Goodyear's debt and recovery ratings are: -- Issuer Default Rating B; -- US$1.5 billion first lien credit facility BB/RR1; -- US$1.2 billion second lien term loan BB/RR1; -- US$300 million third lien term loan B/RR4; -- US$650 million third lien senior secured notes B/RR4; and -- Senior unsecured debt CCC+/RR6. Goodyear Dunlop Tires Europe B.V. -- EUR505 million European secured credit facilities BB/RR1. The Rating Outlook is Negative. The removal of Goodyear's ratings from Rating Watch Negative follows the ratification of a new union contract by the United Steelworkers on Dec. 29, 2006. The new contract runs for three years and covers approximately 12,600 employees at 12 tire and engineered products plants in the United States who had been on strike since Oct. 5, 2006. A separate contract covering workers in Canada has also been approved. The Negative Rating Outlook reflects concerns about weak operating results and higher levels of debt associated with costs of the strike and the new contract. Prior to October when Fitch placed the ratings on Negative Watch, the Rating Outlook had been Stable. During the strike, Goodyear borrowed US$975 million under its bank revolver and issued US$1 billion of senior unsecured notes to support its liquidity and to replace US$515 million of debt scheduled to mature by March. On a pro forma basis, proceeds from the new debt increased Goodyear's cash balances from US$1.3 billion at Sept. 30, 2006, to approximately US$2.7 billion. This amount is adjusted to exclude cash designated for the US$515 million of near-term debt maturities and does not reflect the impact of strike-related costs that Goodyear previously estimated at up to US$35 million per week. Goodyear's cash balances would be available to fund a US$1 billion Voluntary Employees' Beneficiary Association trust to be implemented under the new master contract. The VEBA trust will be funded with US$700 million in cash and US$300 million in cash or common stock at the company's option. Goodyear will transfer to the trust all USW retiree medical obligations, thereby reducing its projected benefit obligation for post-retirement benefits by more than half. It expects the VEBA trust arrangement to improve cash flows related to these benefits by US$145 million annually. Goodyear's operating results and cash flow have been pressured by high raw material costs and by declining tire volumes in North America. The company is addressing these trends through better pricing and by transitioning toward a more favorable product mix. Volume declines in original equipment tires reflect lower vehicle production, while lower volumes for consumer replacement tire volumes include the impact of weaker demand as well as Goodyear's decision to exit certain segments of the low-margin private label tire business. The planned closure of the Tyler Texas plant after 2007, along with three other announced closures, should allow Goodyear to reach its targeted capacity reduction for private label tires and support its focus on higher-margin premium tires. The Rating Outlook could eventually be changed to Stable once Goodyear returns to normal operations and begins to realize expected cost reductions. Any upward revisions in the ratings and Outlook over the longer term would also depend on the company's ability to generate sufficient cash flow to reduce debt and leverage and its ability to maintain its competitive position. Cash flow should benefit from Goodyear's expected cost savings that were announced concurrently with the new labor union agreement. However, ongoing cash requirements for capital expenditures and pension contributions are substantial, and Goodyear's capacity to reduce debt may be limited until market conditions improve and Goodyear makes further progress in realizing projected cost savings. The company estimates that contributions to funded pension plans will total US$550 million to US$575 million in 2006, US$550 million to US$600 million in 2007 and US$200 million to US$250 million in 2008. These cash requirements will be partly offset by a reduction in OPEB cash outflows estimated by Goodyear at US$145 million annually. Goodyear's ongoing cost reduction efforts will be facilitated by its new agreement with the USW. The company has scheduled a conference call on Jan. 9 in which it will address specifics of the new contract. Under Goodyear's cost reduction plan initiated in 2005, the company targeted cost savings in excess of US$1 billion by 2008. By comparison, the company estimates the new labor contract will support savings, relative to costs in 2006, of US$610 million through 2009. The contract provides for a lower wage structure for new hires and more flexibility in making productivity improvements. These benefits should support stronger operating results, but Goodyear still faces a highly competitive environment in which its North American cost structure may leave it at a disadvantage relative to its peers despite expected cost reductions. The new contract provides more job security for union workers and provides for the closure of the Tyler, Texas plant at the end of 2007. Goodyear will be required to make capital investments in USW plants of at least US$550 million during the life of the labor contract. =========================== C Z E C H R E P U B L I C =========================== ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing -------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to the proposed financing of the leveraged buyout of ARAMARK Corp. Moody's concurrently downgraded to B3 from B2 the rating on the existing 5% senior notes due 2012 of ARAMARK Services, Inc., a wholly owned subsidiary of ARAMARK Corp. (Old). This concludes a review for possible downgrade initiated on May 1, 2006. The rating outlook is stable. Rating actions: Ratings/(Assessments) assigned: * ARAMARK (Newco): -- U$600-million secured revolving credit facility due 2013, (P)Ba3 (LGD3, 32%); -- US$3.660-billion secured term loan due 2014, (P)Ba3 (LGD3, 32%); -- US$250-million secured synthetic letter of credit facility due 2013, (P)Ba3 (LGD3, 32%); -- US$1.7-billion senior unsecured notes due 2015, (P)B3 (LGD5, 80%); -- US$570-million senior subordinated notes due 2016, (P)B3 (LGD6, 93%); -- Corporate family rating, (P)B1; and -- Probability of Default rating, B1. These ratings/(assessments) are subject to Moody's review of final documentation. Ratings/(Assessments) downgraded: * ARAMARK (Old): -- Corporate Family Rating, to B1 from Ba3; -- Probability of Default rating, to B1 from Ba3; -- Senior unsecured shelf registration, to (P)B3 (LGD6, 96%) from (P)B2 (LGD6, 96%); and -- Senior subordinated shelf registration, to (P)B3 (LGD 6, 97%) from (P)B2 (LGD6, 97%). Ratings/(Assessments) downgraded: * ARAMARK Services: -- US$250-million senior unsecured notes due 2012, to B3 (LGD 6, 96%) from B2 (LGD6, 96%); -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%) from (P)B2 (LGD6, 96%); and -- Senior subordinated shelf registration, to (P)B3 (LGD 6, 97%) from (P)B2 (LGD6, 97%). Ratings affirmed: * ARAMARK Services: -- US$300 million senior unsecured notes due 2007, Baa3; -- US$31 million senior unsecured notes due 2007, Baa3; and -- US$300 million senior unsecured notes due 2008, Baa3. The review of the ratings was initiated on May 1, 2006, following the announcement that the company had received a proposal to be acquired in a leveraged buyout led by its chairman and private equity investors GS Capital Partners, J.P. Morgan Capital Partners, CCMP Capital Partners, Thomas H. Lee Partners and Warburg Pincus LLC. On Aug. 8, 2006, the board of directors of ARAMARK approved a definitive merger agreement. The merger is valued at approximately US$8.6 billion, including the assumption or repayment of approximately US$2.1 billion of existing debt, and is expected to close in the first quarter of 2007. The merger is expected to be financed with a US$3.66-billion secured term loan, US$1.7-billion of senior unsecured notes, US$570 million of senior subordinated notes and an equity contribution of US$2.1 billion. The company has received commitments to increase the size of its receivable securitization facility from US$225 million to US$250 million and expects to have US$225 million outstanding at closing. Moody's will withdraw the ratings on the senior notes due 2007-2008 upon the closing of the buyout since the company will redeem these notes. The existing corporate family rating of ARAMARK (Old) will also be withdrawn upon the closing of the buyout. The senior notes due 2012 will remain outstanding after the consummation of the buyout. The downgrade of the senior notes due 2012 reflects the structural subordination of these notes to high levels of secured and guaranteed debt in the post- acquisition capital structure. The provisional ratings of ARAMARK (Newco) will be converted into definitive ratings upon the closing of the buyout. The (P)B1 Corporate Family Rating is supported by the large size of the company, significant geographic, customer and service line diversification and good growth fundamentals. Financial strength will weaken significantly post-merger because of the approximately US$4.5 billion in incremental debt needed to fund the buyout. The ratings are constrained by cash flow, leverage and interest coverage metrics that are weak for the B1 rating category. The stable outlook reflects Moody's expectation of 2%-4% organic revenue growth and modest EBIT margin improvement over the next 12-24 months. Cash flow, leverage and interest coverage metrics are expected to remain weak for the rating category during this period. ARAMARK Corp., headquartered in Philadelphia, Pennsylvania, is one of the largest U.S. providers of food and support services to a variety of end markets across the country, including businesses, the educational and healthcare sectors, sports and entertainment venues and correctional institutions. The company also operates the second largest uniform and career apparel rental services and sales business in the U.S., catering to a diversified client portfolio through an extensive national service network. For the 12-month period ending Sept. 30, 2006, revenues were approximately US$11.6 billion. =========== F R A N C E =========== ALCATEL-LUCENT: Sells Transport Unit to Thales SA for EUR1.7 Bln ---------------------------------------------------------------- Shareholders of Thales S.A. approved its EUR1.7-billion acquisition of Alcatel-Lucent's transport-and-security operations, the Wall Street Journal reports. Around 98% of the voting shares approved the acquisition, which Denis Ranque, Thales Chief Executive, described as the biggest the firm made in seven years. Mr. Ranque added that transaction would "stabilize" Thales's shareholding structure. According to WSJ, the deal would see Alcatel-Lucent raise its 9.5% stake in Thales to 21%, while the French government's 31% holding will be diluted to 27.3%, and Dassault's 6% stake diluted to 5%. The transaction would also see Dassault drop out of the shareholder pact; Thales' two biggest shareholders -- French state and Alcatel-Lucent -- will create a new pact, which outlines the conditions under which the two main shareholders can sell their shares. Meanwhile, European Commission commenced an in-depth probe into Thales' plans to acquire Alcatel-Lucent and Finmeccanica S.p.A.'s satellite and space operations, WSJ reports. The regulator would look into whether a possible deal would severely hamper competition in the European market for telecommunications satellites. The Commission will decide in mid-April whether to give approve the deal. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. With 79,000 employees and operations in more than 130 countries, including Brazil, Alcatel-Lucent is a local partner with global reach. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on Dec. 14, 2006, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006 research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. ARROW ELECTRONICS: Highlights Business Achievements in 2006 ----------------------------------------------------------- Arrow Electronics marks 2006 a year of significant progress for the company. This is evident through the achievements and milestones in all aspects of the business worldwide. Arrow expanded geographically and in key vertical markets. The 2006 timeline highlights some of those achievements: * January -- named "Distributor of the Year" in Denmark by the Elisa Group, a consortium of leading Danish electronics Manufacturers. * February -- elected Richard S. Hill to the board of directors; -- named one of Fortune's Most Admired Companies for the sixth consecutive year; -- reported strong fourth quarter results and annual sales at highest levels in five years; -- acquired SKYDATA, a value-added distributor of data storage solutions in Canada; and -- created a new industry lighting group to support the growing end-user market for lighting technology solutions. * March -- dedicated the new lobby at corporate headquarters to the victims of the 1980 fire; and -- named Peter T. Kong as president, Arrow Asia/Pacific. * April -- reported year-over-year net income growth of 43 percent and the 13th consecutive quarter of year-over-year sales growth; -- created a software group in enterprise computing to support new market opportunities. * May -- elected William E. Mitchell as chairman of the board and Daniel W. Duval became lead director; -- formed a new industrial group dedicated to serving the needs of manufacturers in the industrial market. * June -- named one of the "Most Preferred International Distributors" in China in Electronics Supply & Manufacturing - China (ESMC) customer survey. * July -- reported net income advanced 59 percent over prior year; record second quarter sales and earnings in excess of expectations; -- opened new office in Pune, India, one of the fastest growing markets in Asia Pacific. * August -- launched Voice of the Supplier workshop in North America -- Received top ranking in annual ESMC Distributor Customer Preference Study in China; * September -- ranked as "Top Specialty Distributor" in Computer Reseller News (CRN) sourcing study in North America; -- named Michael J. Long as president, Arrow Global Components; -- named Philippe Combes as president, Arrow EMEASA and Germano Fanelli as chairman, Arrow EMEASA; -- named Vincent Melvin as chief information officer. * October -- recognized by InformationWeek as one of the most innovative companies of information technology; -- reported net income soared 35 percent. * November -- acquired Alternative Technology, a U.S. distributor of enterprise computing solutions -- named number one "Most Sourced Specialty Distributor" by CRN; -- ranked first by customers in both Asia and China in EDN's Worldwide Semiconductor and IC Brand Study; * December -- acquired the storage and security distribution business of InTechnology plc. in the United Kingdom; -- appointed M. Catherine Morris and Kevin Gilroy to the Arrow Enterprise Computing Solutions (ECS) Office of the President -- contributed US$125,000 to 11 nonprofit organizations to help bring holiday cheer to local communities 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. PHILLIPS-VAN HEUSEN: Completes US$110-Mln Acquisition of Superba ---------------------------------------------------------------- Phillips-Van Heusen Corp. has completed the acquisition of substantially all of the assets of privately held Superba, Inc. As reported in the Troubled Company Reporter on Oct. 16, 2006, the company entered into a definitive agreement to acquire substantially all of the assets of Superba for US$110 million, subject to adjustment, plus an earn-out over a three-year period based on the earnings of the acquired business for each of the first three years after the closing, with a maximum value of US$70 million. Superba, Inc., manufactures and distributes neckwear in the United States and Canada. The acquired business, which includes neckwear licenses for designer and brand names, such as Arrow, DKNY, Tommy Hilfiger, Nautica, Perry Ellis, Ted Baker, Ike Behar, Michael Kors, JOE Joseph Abboud, Original Penguin, Jones New York and Hart Schaffner Marx, will be operated through the newly formed PVH Neckwear Group. The company disclosed that it has also entered into an agreement with Mallory & Church LLC pursuant to which PVH and Mallory have agreed to the early termination of the neckwear licenses that Mallory holds for the company's IZOD and Calvin Klein brands. The PVH Neckwear Group will assume control of the Calvin Klein and IZOD neckwear businesses and the neckwear offerings will continue to be distributed through better department stores and specialty stores. The arrangement is expected to become effective in early February. Commenting on the transactions, Emanuel Chirico, chief executive officer, stated "We are excited with the opportunity the Superba acquisition presents. Neckwear is, obviously, complementary to our heritage business in dress shirts and Superba has followed the same multiple brand, multiple channel, and multiple price point strategy that we have followed. We believe that the synergy created by coupling the leading neckwear and dress shirt businesses will provide us with additional opportunity to grow both businesses." Mr. Chirico added, "We are also pleased that we have been able to provide for the early return of the Calvin Klein and IZOD neckwear businesses. This will provide us with an immediate opportunity to expand our newly acquired neckwear business and enhance the growth we expect to see from it." Phillips-Van Heusen Corporation (NYSE:PVH) -- http://www.pvh.com/-- owns and markets the Calvin Klein brand worldwide. It is a shirt company that markets a variety of goods under its own brands: Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co., Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole, BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael Kors, Chaps, and Donald J. Trump Signature. * * * As reported in the Troubled Company Reporter on Dec. 14, 2006, Moody's Investors Service upgraded Phillips Van Heusen Corporation's corporate family rating to Ba2 from Ba3. The company's senior secured notes were upgraded to Baa3 from Ba1 and the company's senior unsecured notes were upgraded to Ba3 from B1. The company's probability of default rating was also upgraded to Ba2 from Ba3. POLYMER GROUP: Consolidating U.S. Manufacturing to Lower Costs -------------------------------------------------------------- Polymer Group Inc. will consolidate manufacturing in the U.S. to lower its operating costs and improve overall performance. The company will close its Rogers, Arkansas and Gainesville, Georgia plants, and transfer portions of the business to other locations in North America and Asia. Operations at the two plants are expected to be phased out by mid-2007 and the company will provide the affected workers with severance and displacement assistance. "This consolidation plan is necessary for Polymer Group to maintain its competitiveness in the U.S. markets. It is consistent with our strategy to continuously streamline operations and represents our ongoing commitment to improving our cost position," said William B. Hewitt, Polymer Group's interim chief executive officer. "The steps we are taking will result in an improved cost structure and make Polymer Group a stronger company going forward. We deeply regret the impact these difficult actions will have on our employees but they are necessary to achieve our profit targets in an increasingly competitive global market." Rogers, Arkansas Plant Polymer Group will relocate thermal and adhesive bonding business from Rogers to Landisville, New Jersey, to achieve synergies and reduce overhead costs. The company will move manufacturing of spunlace fabrics used in wipes from Rogers to its plants in North Little Rock, Arkansas, and Benson, North Carolina. The materials produced on these lines are used in hygiene, industrial and wiping applications. "The Rogers and Landisville plants have similar manufacturing operations and equipment," Hewitt said. "By consolidating them, we will be able to more efficiently utilize these assets at one location and improve overall profitability." Originally started up by Scott Paper Co. in 1974, Polymer Group purchased the plant in 1992. The Rogers plant has approximately 120 workers. Gainesville, Georgia Plant Consistent with the previously announced installation of a finishing line in Suzhou, China, Polymer Group will relocate the finishing of medical fabrics from Gainesville to the new plant in China that is strategically located near its customers' converting operations. These fabrics are used in surgical gowns and drapes, and wound care. Manufacturing of Polymer Group's proprietary Reticulon apertured film products used in feminine sanitary napkins will be transferred from Gainesville to Polymer Group's Bonlam plant in San Luis Potosi, Mexico. This move also will enable Polymer Group to expand capabilities in Mexico to produce laminated cloth-like back sheet for diapers. The Gainesville plant was originally part of Chicopee Manufacturing Co. and was constructed in 1956. Polymer Group purchased the plant in 1995 when it acquired the Chicopee non- woven business from Johnson & Johnson. Currently, approximately 50 workers are employed at the plant. After the consolidations are complete, Polymer Group will continue to operate five non-woven plants in the U.S. Other non- woven locations include: -- Benson and Mooresville, North Carolina; -- Landisville, New Jersey; -- North Little Rock, Arkansas; and -- Waynesboro, Virginia. As a result of the decision to consolidate the operations, the company estimates that it will recognize cash restructuring charges of approximately US$5.5 million to US$6.0 million and the non-cash write-off of certain assets of approximately US$1.4 million. The consolidation efforts, which are expected to be complete by the end of the third quarter of fiscal 2007, are expected to result in improved profitability and a more efficient manufacturing cost structure, with cash fixed costs expected to be reduced by approximately US$4.0 million to US$6.0 million on an annualized basis. Additionally, the Company anticipates proceeds of approximately US$4.5 million to US$6.0 million from the sale of idled facilities and equipment. Polymer Group, Inc., -- http://www.polymergroupinc.com/-- (OTC Bulletin Board: POLGA/POLGB) develops, manufactures and markets engineered materials. The company operates 22 manufacturing facilities in 10 countries throughout the world. The company has manufacturing offices in Argentina, China and France, among others. * * * As reported in the TCR-Europe on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on Polymer Group Inc. to negative from stable. All ratings, including the 'BB-' corporate credit rating, were affirmed. The outlook revision follows several quarters of weaker-than- expected performance and somewhat higher-than-expected debt primarily due to raw material cost escalation and some product mix shifts. Also contributing to the disappointing results were several one-time items such as costs related to technical problems associated with new equipment, an acquisition that was not consummated, the closing of manufacturing capacity, and moving the company's headquarters. ============= G E R M A N Y ============= AUTOTEILE ZINK: Claims Registration Ends January 16 --------------------------------------------------- Creditors of Autoteile Zink GmbH have until Jan. 16 to register their claims with court-appointed provisional administrator Thorsten Snyders. Creditors and other interested parties are encouraged to attend the meeting at 2:20 p.m. on Jan. 31, 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 Lingen (Ems) Hall Z 17 New Building Burgstrasse 28 49808 Lingen (Ems), 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 Lingen (Ems) opened bankruptcy proceedings against Autoteile Zink GmbH on Nov. 9, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Autoteile Zink GmbH Hundesand 3 49809 Lingen, Germany Attn: Hubert Hemme, Manager Schwedenschanze 78 49808 Lingen (Ems) Germany The administrator can be contacted at: Thorsten Snyders Heideweg 72 48529 Nordhorn, Germany Tel: 05921/7139145 Fax: 05921/7139146 E-mail: Snyders@raehp.de DAIMLERCHRYSLER AG: Chrysler Arm to Double International Sales -------------------------------------------------------------- Chrysler Group, DaimlerChrysler A.G.'s U.S. unit, aims to double its international sales in the next five years, following a decline in its U.S. results in 2006, Bloomberg News reports. Chrysler CEO Tom LaSorda said the unit wants to be less dependent on its U.S. sales, which fell seven percent in 2006. The U.S. accounts for around 80% of Chrysler sales. Mr. LaSorda said the company would focus on increasing sales outside North America adding vehicle features like right-hand drive and diesel engines. The company sold 200,000 vehicles outside North America in 2006. Chrysler's plans also include: -- adding a Taiwan-built cargo van in Mexico; and -- manufacturing Sebring sedans in China for domestic sale. In a TCR-Europe report on Jan. 5, Chrysler has signed a deal with Chery Automobile Co. under which the Chinese automaker will produce small cars known in the industry as "B-cars" to be distributed worldwide bearing the Chrysler brand. DaimlerChrysler has decided to partner with Chery Auto because higher costs such as labor and healthcare make it difficult for the company to build small cars profitably in the U.S., Bloomberg News reports. "Their plan is realistic," John Novak, an analyst at Morningstar Inc. in Chicago, told Bloomberg. "I think they are a little late to the game, but they can catch up." 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, 2006, 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, 2006, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount 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. DAIMLERCHRYSLER AG: Plans to Build Assembly Site in India --------------------------------------------------------- DaimlerChrysler AG will construct a new assembly site in Chakan, India to cater to the increasing demand for cars, Bloomberg News reports. The company will shift the production of its Mercedes-Benz C-Class, E-Class and S-Class brand to its Indian site. The site will have annual production capacity of 5,000 cars, double DaimlerChrysler's sales figure in 2006, Bloomberg News relays. "There is room for more cars from our range, but we will decide on that in due course," Thomas Weber, DaimlerChrysler's Research and Development chief, said. "We are confident of the potential that the Indian market can generate." DaimlerChrysler joins Volkswagen AG, General Motors Corp. and other automakers in building production sites in India, where expanding economy and rising incomes spurred growing demand for vehicles, Bloomberg News adds. Carmakers announced in 2006 a combined US$5 billion of investments in new factories in India by 2012. 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, 2006, 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, 2006, DaimlerChrysler reduced the Group's operating- profit target for 2006 to an amount 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. DIALOG2 GMBH: Claims Registration Ends January 17 ------------------------------------------------- Creditors of Dialog2 GmbH have until Jan. 17 to register their claims with court-appointed provisional administrator Ulrike Hoge-Peters. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 7, 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 Offenbach am Main Hall 166N 1st Floor Emperor Route 16-18 (Building K18) 63065 Offenbach am 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 Offenbach am Main opened bankruptcy proceedings against Dialog2 GmbH on Nov. 13, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Dialog2 GmbH Attn: Harald Behr, Manager Waldstr. 23 A1 63128 Dietzenbach, Germany The administrator can be contacted at: Ulrike Hoge-Peters Cronstettenstr. 30 60322 Frankfurt/Main Germany Tel: 069/9591100 Fax: 069/95911012 DISC-SPEZIAL: Claims Registration Ends January 15 ------------------------------------------------- Creditors of Disc-Spezial Digitale Datentrager GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Bernd Reuss. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Jan. 30, 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 Hanau Area 204 Branch Office Insolvency Court Engelhardstrasse 21 63450 Hanau, 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 Hanau opened bankruptcy proceedings against Disc-Spezial Digitale Datentrager GmbH on Nov. 10, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Disc-Spezial Digitale Datentrager GmbH Robert-Bosch-Str. 5 61130 Nidderau, Germany Attn: Jutta Born, Manager Gartenstr. 22 61197 Florstadt, Germany The administrator can be contacted at: Bernd Reuss Mainzer-Tor-Anlage 33 61169 Friedberg/H., Germany Tel: 06031/797-0 Fax: 06031/797100 FOERSTER GMBH: Claims Registration Ends January 16 -------------------------------------------------- Creditors of Foerster GmbH have until Jan. 16 to register their claims with court-appointed provisional administrator Andreas Kienast. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Jan. 16, 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 Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg, 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 Magdeburg opened bankruptcy proceedings against Foerster GmbH on Nov. 10, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Foerster GmbH Attn: Dirk Foerster, Manager Hauptstr. 92c 06507 Friedrichsbrunn, Germany The administrator can be contacted at: Andreas Kienast Lennestr. 10 39112 Magdeburg, Germany Tel: 0391/5973322 Fax: 0391/5973333 FREIE ALTEN: Claims Registration Ends January 16 ------------------------------------------------ Creditors of Freie Alten- und Krankenpflege e.V. have until Jan. 16 to register their claims with court-appointed provisional administrator Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on Feb. 6, 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 Cologne Meeting Room 14 Ground Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Freie Alten- und Krankenpflege e.V. on Nov. 9, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Freie Alten- und Krankenpflege e.V. Pingsdorfer Road 52-54 50321 Bruehl, Germany Attn: Edda-Heidrun Gatzweiler, Manager Heideweg 8 53332 Bornheim, Germany Paul Kaluza, Manager Wilhelmstrasse 3 50321 Bruehl, Germany The administrator can be contacted at: Jana Dettmer Weyerstrasse 54 50676 Cologne, Germany GG EXKLUSIVHAUS: Creditors' Meeting Slated for January 17 --------------------------------------------------------- The court-appointed provisional administrator for GG Exklusivhaus GmbH & Co. KG, Joerg Nerlich, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Jan. 17. The meeting of creditors and other interested parties will be held at: The District Court of Betzdorf Hall 109 1st Floor Friedrichstrasse 17 57518 Betzdorf, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on Feb. 28, at the same venue. Creditors have until Jan. 31 to register their claims with the court-appointed provisional administrator. The District Court of Betzdorf opened bankruptcy proceedings against GG Exklusivhaus GmbH & Co. KG on Oct. 30, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GG Exklusivhaus GmbH & Co. KG Attn: Gerd Goldmann, Manager Knappenstrasse 24 57581 Katzwinkel, Germany The administrator can be reached at: Dr. Joerg Nerlich Hauptmarkt 23 57076 Siegen, Germany Tel: 0271/2319010 Fax: 0271/2319014 HAUS & MEHR: Creditors' Meeting Slated for January 19 ----------------------------------------------------- The court-appointed provisional administrator for haus & mehr GmbH, Knut Rebholz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on Jan. 19. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:10 a.m. on April 20 at the same venue. Creditors have until Feb. 19 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against haus & mehr GmbH on Nov. 3, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: haus & mehr GmbH Herzbergstr. 55 10365 Berlin, Germany The administrator can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin, Germany HI-FI-WERKSTATT: Claims Registration Ends January 15 ---------------------------------------------------- Creditors of Hi-fi-Werkstatt Armin Kahn & Partner GmbH have until Jan. 15, to register their claims with court-appointed provisional administrator Juergen Spliedt. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on March 16, 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 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 during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Hi-fi-Werkstatt Armin Kahn & Partner GmbH on Sept. 28, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hi-fi-Werkstatt Armin Kahn & Partner GmbH Colditzstr. 34 12099 Berlin, Germany The administrator can be contacted at: Dr. Juergen Spliedt Uhlandstr. 165/166 10719 Berlin, Germany HOGA GMBH: Claims Registration Ends January 16 ---------------------------------------------- Creditors of HOGA GmbH have until Jan. 16 to register their claims with court-appointed provisional administrator Ralph Schmid. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Feb. 7, 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 HOGA GmbH on Nov. 16, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: HOGA GmbH Neutorstr. 5 48653 Coesfeld, Germany Attn: Klaus Doennebrink, Manager Brinkstr. 23 48249 Duelmen, Germany The administrator can be contacted at: Ralph Schmid Duelmener Str. 92 48653 Coesfeld, Germany KRIETER SPORT: Claims Registration Ends January 15 -------------------------------------------------- Creditors of Krieter Sport & Business GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 29, 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 Kiel Hall 17 Kiel, 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 Kiel opened bankruptcy proceedings against Krieter Sport & Business GmbH on Nov. 10, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Krieter Sport & Business GmbH Attn: Michael Krieter, Manager Dorfstrasse 12a 24113 Molfsee, Germany The administrator can be contacted at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg, Germany Tel: 040/334460 VOLKSWAGEN AG: Wolfgang Bernhard May Leave Post, Report Says ------------------------------------------------------------ Volkswagen AG brand head Wolfgang Bernhard is set to leave the company over a planned management restructuring backed by the automaker's largest shareholder, chairman Ferdinand Piech, Stephen Power writes for The Wall Street Journal. According to Andrew McCathie of Playfuls.com, the company's new CEO Martin Winterkorn, who previously headed VW's Audi unit, will unveil details of the major reorganization on Jan. 10. A full board meeting on Jan. 11 will follow the committee meeting. WSJ reports that Mr. Bernhard's move is the latest sign of high- level friction at Volkswagen following last month's resignation of CEO Bernd Pischetsrieder. A new position for Mr. Bernhard was proposed by the company's board of directors and limits the executive's work to overseeing the company's production and not the crucial development of new models and sales, according to published reports. However, according to people familiar with the matter, Mr. Bernhard turned down the offer, stressing that it violates the terms of his contract, which runs until 2010. "It's fairly clear he won't stay," a person familiar with Mr. Bernhard's thinking told WSJ. "He's said 'if my job is changed, I've got to leave.'" Mr. Bernhard played an important role in pushing forward the company's tight cost cutting measures, including the campaign to slash its German workforce by 20,000 in the face of rough competition. He was also behind the company's decision last year to pull out from the U.S. market the US$68,00 VW Phaeton sedan following disappointing sales, a move that bothered Mr. Piech, who defended the Phaeton's development when he was CEO between 1993 and 2002. Mr. Piech, whose grandfather Ferdinand Porsche founded Porsche AG, became VW's largest shareholder when the sports-car maker decided last year to purchase more than EUR3 billion Volkswagen shares. Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Africa, and Asia, including China, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle- related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by then CEO Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November last year, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. VOLKSWAGEN AG: Records 3.4 Million Vehicle Deliveries in 2006 ------------------------------------------------------------- Volkswagen passenger cars brand recorded a total of 3.395 million vehicle deliveries in 2006, representing a 10% increase over 2006. "Growth was noticeably stronger for the Volkswagen brand than for the world market in 2006. Key markets recorded quite significant growth in some cases. With these record figures, Volkswagen has strengthened its position as one of world's largest automakers," Dr. Wolfgang Bernhard, chairman of the Volkswagen brand board of management, commented. Dr. Bernhard added that growth had been particularly strong for Volkswagen in Germany and Europe. "Although Germany remains a hard-fought market characterized by high discounts from competitors, we have nevertheless seen a noticeable rise in sales and have increased our market share from 18.6 to 19.9 percent." He emphasized that Volkswagen had not bought its way to growth. "We have combined our attractive models with product offerings from Volkswagen Bank and Volkswagen Service which bring genuine added value. These packages have convinced our customers." He said Volkswagen would be continuing with this approach this year. "We focus on customer benefit, not on discounts." "We have not only defended our market leadership in Europe, but have further extended our lead," Dr. Bernhard commented. In 2006, Volkswagen delivered 1.525 million vehicles in Western Europe, including Germany, 5.6 percent more than in 2005. The market share rose from 10.3 to 11.0 percent. Developments in Eastern Europe were also positive for Volkswagen. In Russia, 19,200 Volkswagen brand vehicles were sold, 59.6% up on the figure for 2005. In China, including Hong Kong, Volkswagen sold 625,000 vehicles, a year-on-year increase of 22.3 percent. "We made the turnaround in China in 2006," Dr. Bernhard expressed. In the Asia/Pacific region, excluding China, deliveries rose by 11.5 percent to 88,000 units. On the U.S. market, Volkswagen increased deliveries to customers by 4.9 percent to 235,000 vehicles. 2006 sales in South America and South Africa, 571,000 vehicles were delivered, representing a year-on-year increase of 15.0 percent. In Brazil in particular, Volkswagen recorded a 15.2 percent increase, with sales rising to 373,000 units. For 2007, Dr. Michael Kern, the Volkswagen brand board member for sales and marketing, does not expect any noticeable easing of the competitive situation on the major automobile markets: "Stagnation or only slight growth can be expected for both Germany and Western Europe. It also looks as if the discount battles in the U.S.A. are set to continue," Dr. Kern disclosed. Dr. Kern added that Volkswagen was, however, assuming continued strong growth on the Chinese market. "We will be doing our utmost to benefit as extensively as possible from this trend." Dynamic development in Russia would also continue. He added that Volkswagen expected additional positive momentum when production at the new plant in Kaluga starts in the second half of the year. Volkswagen would also begin selling locally built vehicles in India as early as mid-2007 and anticipated proactive involvement in dynamic market development there, too. Dr. Bernhard emphasized that Volkswagen would be further enhancing quality, customer satisfaction and service orientation in 2007. "We already made significant progress in customer satisfaction last year with improved vehicle quality and innovative service concepts, and will be continuing along this path with uncompromising determination." Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Africa, and Asia, including China, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle- related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November last year, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1 -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to the proposed US$1.2 billion senior secured term loan facility of Weight Watchers International, Inc. and affirmed existing credit ratings. The rating outlook remains stable. The proceeds from the $1.2 billion credit facility are expected to be used to fund share purchases, refinance the indebtedness of its subsidiary, WeightWatchers.com, and pay related fees and expenses. The existing $850 million credit facility is expected to remain outstanding at closing. On Dec. 18, 2006, Weight Watchers reported that it commenced a self-tender offer for up to 8.3 million shares of its common stock and also entered into an agreement with Artal Holdings Sp. z o.o., its majority shareholder. The agreement with Artal provides that Weight Watchers will purchase from Artal shares of its common stock so that Artal's percentage ownership in Weight Watchers after the tender offer will be substantially equal to its current level of approximately 55.2%. Prior to its recent report, Weight Watchers' credit metrics were strong for the Ba1 rating category, but reflected uncertainty related to the firm's target capital structure and expected financial policies. Although the reported transaction will result in pro forma leverage and cash flow metrics that are weak for the rating category, these metrics are expected to improve in 2007. Moody's expects profitability in 2007 to benefit from new business initiatives and expects the company to utilize internal cash generation to repay a portion of the transaction indebtedness. The Ba1 corporate family rating continues to reflect high levels of pretax income, impressive profit margins and solid geographic diversification. The ratings are constrained by reliance on a single brand and potential threats from new competitors and products. Moody's took these rating actions for Weight Watchers: -- Assigned $700 million add-on senior secured term loan A facility due 2013, Ba1, LGD3, 34%; -- Assigned $500 million add-on senior secured term loan B facility due 2014, Ba1, LGD3, 34%; -- Affirmed $500 million senior secured revolving credit facility due 2011, Ba1, LGD3, 34%; -- Affirmed $350 million senior secured term loan A facility due 2011, rated Ba1, to LGD3, 34%; -- Affirmed Corporate Family Rating, Ba1; and, -- Affirmed Probability of Default Rating, Ba2. Moody's affirmed the credit ratings of WeightWatchers.com and will withdraw such ratings upon the repayment of its rated debt with the proceeds from the add-on term loan facilities. The stable ratings outlook anticipates solid revenue and profitability growth in 2007 driven by recent franchise acquisitions, implementation of price increases in portions of North America and Europe, new marketing campaigns and wider roll-out of new monthly and seasonal membership plans. Free cash flow generation is expected to be primarily utilized for debt repayment. The company's willingness to substantially increase leverage in connection with its pending share purchase is inconsistent with an investment grade rating profile. Consequently, the ratings are unlikely to be upgraded in the intermediate term. However, over the long term, an upgrade is possible if the company: -- grows profitability or repays indebtedness such that EBIT coverage of interest and free cash flow to debt are sustained for a few years at over 4.5x and 12%, respectively; and, -- demonstrates a commitment to conservative financial policies. The ratings could be pressured by another large share repurchase in the near term or a failure to achieve anticipated improvements in credit metrics during the next year. Credit metrics could remain weak within the rating category if attendance levels or operating margins decline and term loan repayments are materially below Moody's expectations. A downgrade is possible if EBIT coverage of interest and free cash flow to debt are expected to be sustained at less than 2.5x and 8%, respectively. Headquartered in New York, New York, Weight Watchers is a leading global provider of weight management services, operating globally through a network of company owned and franchised operations. Revenues for the twelve months ended Sept. 30, 2006, were $1.2 billion. WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating for New York, N.Y.-based commercial weight-loss service provider Weight Watchers International Inc. At the same time, all WWI ratings were removed from CreditWatch, where they were placed with negative implications on Dec. 20, 2006, reflecting WWI's increasingly aggressive financial policy following the company's announcement that it plans to launch a "modified Dutch auction" self-tender offer for up to 8.3 million shares of its common stock at a price range between US$47 and US$54 per share. At the same time, Standard & Poor's assigned its 'BB' rating to the company's proposed US$700-million term loan A-1 and US$500-million term loan B, with a recovery rating of '2', indicating the expectation for substantial (80%-100%) recovery of principal in the event of a payment default. S&P also lowered the existing bank loan ratings on WWI's US$350-million term loan A and US$500-million revolving credit facility to 'BB' from 'BB+' and the recovery rating on these facilities to '2' from '1'. The rating outlook is negative. Proceeds from the new US$1.2 billion of term loans will be used to finance the tender offer and to repay outstanding debt at wholly owned subsidiary WeightWatchers.com (WW.com, B+/Positive/--). Artal Luxembourg S.A., WWI's majority shareholder, plans to retain its 55.2% pro rata share of common stock outstanding following the completion of the Dutch auction repurchase. WWI intends to repay the outstanding balance of WW.com's senior secured credit facilities, which consist of a US$170-million first-lien term loan and a US$45-million second-lien term loan. S&P expect all ratings on WW.com to be withdrawn upon the completion of the planned refinancing of its existing senior secured debt. ============= H U N G A R Y ============= AES CORP: Increases Revolving Credit Facility to US$750 Million --------------------------------------------------------------- (Jason/SEC) In a regulatory filing with the U.S. Securities and Exchange Commission, AES Corp. disclosed that on Dec. 6 and Dec. 26, 2006, it entered into amendments for its senior secured facility. The amendments are part of a single plan and increase the size of the revolving credit facility from US$650 million to US$750 million. The amendment was entered into by: * AES Corp., as borrower; * AES Hawaii Management Company, Inc., AES New York Funding, L.L.C., AES Oklahoma Holdings, L.L.C., and AES Warrior Run Funding, L.L.C., as Subsidiary Guarantors; * Citicorp Usa, Inc., as Agent and as a Revolving Fronting Bank; * Citibank N.A., as Collateral Agent; * Bank of America, N.A., Deutsche Bank Trust Company Americas, Lehman Commercial Paper, Inc., UBS AG, Stamford Branch, Union Bank California, N.A., CALYON - New York Branch, and Societe Generale - New York Branch, as Revolving Fronting Banks; and * Barclays Bank PLC, as a Committing Bank. A full-text copy of Amendment No. 9 to the Third Amended and Restated Credit and Reimbursement Agreement, dated as of Dec. 29, 2006, is available for free at: http://ResearchArchives.com/t/s?182c A full-text copy of Amendment No. 8 to the Third Amended and Restated Credit and Reimbursement Agreement, dated as of Dec. 6, 2006, is available for free at: http://ResearchArchives.com/t/s?182d AES Corp. (NYSE:AES) -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * AES Corp.'s senior secured term loan due 2011 and senior secured revolving credit facility due 2010 carry Moody's Ba1 rating. ========= I T A L Y ========= PARMALAT SPA: Supreme Court Confirms Marzano Law's Legitimacy ------------------------------------------------------------- The Italian Constitutional Court -- Corte Costituzionale della Repubblica Italiana -- has confirmed as manifestly unfounded the questions of constitutional legitimacy raised by the Parma Court in the context of a series of proceedings in which San Paolo IMI S.p.A., Banca Popolare dell'Etruria e del Lazio soc. Coop, Banca Popolare di Cremona S.p.A., Banco di Brescia San Paolo CAB S.p.A., Banca Carige S.p.A.- Cassa di Risparmio di Genova e Imperia, Banco Popolare di Verona e Novara soc. coop. a. r.l., Credit Suisse International (formerly known as Credit Suisse First Boston International), Unipol Banca S.p.A., and Cassa di Risparmio di Pisa S.p.A. are defendants. In particular, the Constitutional Court confirmed the constitutional legitimacy of art. 6, para.1, of law 39/2004, which establishes that bankruptcy revocatory claims can be filed also while a restructuring program is pending. With the same ordinance, the Constitutional Court also declared the constitutional legitimacy of art. 6, para. 1-ter, of law 39/2004 and the constitutional legitimacy of the joint provision of art. 6, para. 1 and 4 bis, para. 10, of the same law. As reported in the TCR-Europe on Dec. 12, 2006, the Corte Costituzionale della Repubblica Italiana has upheld a law that allows Parmalat S.p.A. to pursue clawback claims against GE Capital Finance and UBS AG, The Associated Press reports. The banks questioned the legitimacy of the Marzano Bankruptcy Law in Parmalat's case because it came into effect after the company's bankruptcy. The law, passed in December 2003 to manage the food group's collapse, permits Parmalat to recover payments made in the year before its insolvency, AP relates. Four similar cases are still pending before the Constitutional Court. Enrico Bondi, Parmalat Chief Executive, has filed damage claims and clawback actions in the U.S. and Italy to recover around EUR13.2 billion from banks, auditors and advisers who allegedly abetted the company's collapse in December 2003. 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: Shares Allocation Prompts EUR374,185 Capital Hike --------------------------------------------------------------- Parmalat S.p.A. communicates that, following the allocation of shares to creditors of the Parmalat Group, the subscribed and fully paid up share capital has now been increased by EUR374,185 to EUR1,641,527,456 from EUR1,641,153,271. The share capital increase is due to the assignation of 180,328 shares and the conversion of warrants for 193,857 shares. Approximately 49,520,150 shares representing approximately 3.0% of the share capital are still in a deposit account c/o Parmalat S.p.A., of which: -- 16,852,397 or 1.0% of the share capital, registered in the name of individually identified commercial creditors, are still deposited in the intermediary account of Parmalat S.p.A. centrally managed by Monte Titoli (compared with 16,930,986 shares as at Nov. 23, 2006); -- 32,667,753 or 2,0% of the share capital registered in the name of the Foundation, called Fondazione Creditori Parmalat, of which: -- 120,000 shares representing the initial share capital of Parmalat S.p.A. (unchanged); -- 32,547,753 or 2.0% of the share capital that pertain to currently undisclosed creditors (compared with 33,187,109 shares as at Nov. 23, 2006). 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/) SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8 --------------------------------------------------------- Sbarro Inc. reported a US$2.1-million net income on US$80 million of total revenues for the 12 weeks ended Oct. 8, 2006, compared with a US$323,000 net loss on US$79.3 million of total revenues for the same period ended Oct. 9, 2005. Sales by quick service restaurants and consolidated other concept restaurants increased 1.3% to US$75.5 million for the twelve weeks ended Oct. 8, 2006, from US$74.5 million for the twelve weeks ended Oct. 9, 2005. The increase in sales for the third quarter of 2006 is the result of US$1.5 million or 2.1% of higher sales in the company's quick service restaurants, with comparable restaurant sales increasing by 4.8% offset, in part by fewer company owned quick service restaurants in operation during 2006 and slightly lower restaurant sales of the company's consolidated other concepts as a result of the sale of a joint venture and two company owned restaurants. Franchise related revenues increased to US$3.3 million for the third quarter of 2006 from US$2.9 million in the third quarter of 2005, attributable to additional locations opened during the last twelve months (net of closed locations). Real estate and other revenues decreased by US$700,000 in the third quarter of 2006 from US$1.9 million in the third quarter of 2005, primarily attributable to a reduction in rental income in one of the subsidiaries resulting from a tenant bankruptcy and a decrease in certain food rebates the company receives based on franchisee's level of purchase. Cost of food and paper products as a percentage of restaurant sales improved by 1.2 percentage points to 19.3% for the 12 weeks ended Oct. 8, 2006, from 20.5% for the 12 weeks ended Oct. 9, 2005. The cost of cheese in the third quarter of 2006 averaged approximately US$1.40 per pound compared to an average of approximately US$1.68 per pound for the third quarter of 2005. This US$0.28 per pound improvement in cheese cost accounted for US$600,000 of the improvement. Improved operational controls, combined with selective price increases implemented in 2005, were the primary reasons for the remainder of the improvement in cost of sales as a percentage of restaurant sales. Payroll and other employee benefits as a percentage of restaurant sales was 26.5% in the third quarter of 2006 compared to 28.3% in the third quarter of 2005. Payroll costs decreased US$1.1 million as compared to the third quarter of 2005 as a result of improved efficiencies and improved sales. Other operating costs increased by US$200,000 for the twelve weeks ended Oct. 8, 2006, from the third quarter of 2005 and, as a percentage of restaurant sales, decreased to 35.1% from 35.4%, primarily attributable to an increase in bonus expense partially offset by lower repairs and maintenance. General and administrative expenses were US$6.7 million for the third quarter of 2006 compared to US$5.6 million the third quarter of 2005, primarily due to upgrades and additions to corporate and franchise personnel and an increase in a long-term executive bonus plan accrual. Interest expense of US$7 million for the third quarters of both 2006 and 2005 relates primarily to the 11%, US$255 million senior notes the company issued to finance its going private transaction in 1999 and the 8.4%, US$16 million mortgage loan on its corporate headquarters building. Equity in the net income of unconsolidated affiliates in other concept restaurants in which the company has a 50% or less ownership interest increased by US$200,000 in the third quarter of 2006 from the third quarter of 2005 as a result of improved performance. In the third quarter of 2006 the company had an income tax credit of US$100,000 for changes in taxable income projections in states that do not recognize Subchapter S corporation status of the Internal Revenue Code, pursuant to which substantially all taxes on income are paid by shareholders. Tax expense of US$500,000 for the third quarter of 2005 was for taxes owed to jurisdictions that do not recognize S corporation status or that tax entities based on factors other than income and for taxes withheld at the source of payment on foreign franchise income related payments. At Oct. 8, 2006, the company's balance sheet showed US$378.4 million in total assets, US$312.2 million in total liabilities, and US$66.2 million in total stockholders' equity. Sources and Uses of Cash The company has not historically required significant working capital to fund existing operations and has financed capital expenditures and investments in joint ventures through cash generated from operations. Net cash used in operating activities was US$4.0 million for the forty weeks ended Oct. 8, 2006, compared to US$11.2 million used during the forty weeks ended Oct. 9, 2005. The decrease in net cash used in operating activities was primarily attributable to a lower net loss combined with a lower increase in prepaid expenses partially offset by an accounts payable decrease. Net cash used in investing activities was US$900,000 higher in the forty weeks ended Oct. 8, 2006, increasing to US$9.0 million from US$8.1 million for the forty weeks ended Oct. 9, 2005. The increase was primarily due to increased restaurant remodeling partially offset by proceeds from the sale of restaurant property and equipment and capital contributions from partners to consolidated joint ventures. Full-text copies of the company's consolidated balance sheet for the 12-week period ended Oct. 8, 2006, are available for free at http://researcharchives.com/t/s?16a4 Merger Sbarro has disclosed the terms of its merger agreement with MidOcean SBR Holdings, LLC, and MidOcean SBR Acquisition Corp. Under the merger agreement MidOcean Acquisition will be merged with and into Sbarro Inc., with Sbarro Inc. continuing as the surviving corporation. Under the Merger Agreement, the stockholders of Sbarro will receive, in the aggregate: (i) cash consideration of US$417 million less adjusted debt; (ii) a distribution of certain cash of Sbarro in consideration for the delivery to Sbarro of certain shares of common stock of Sbarro Inc.; and (iii) a preferred interest in Holdings comprised of 33,000 Class A Units, each with an initial stated value of US$1,000. About Sbarro Inc. Melville, New York-based Sbarro Inc. -- http://www.sbarro.com/ -- is a quick service restaurant chain that serves Italian specialty foods. The Company has around 1,000 locations across 34 countries and 11,000 employees under brand names such as "Sbarro," "Umberto's," and "Carmela's Pizzeria." The company maintains operations in Australia, Italy, and Japan, among others. SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch -------------------------------------------------------------- Standard & Poor's Rating Services revised the CreditWatch listing on Sbarro Inc. to developing from negative. "The revision comes as the potential for a downgrade has decreased because the acquisition of the company by MidOcean Partners will not significantly change the capital structure," said Standard & Poor's credit analyst Diane Shand. "In addition, because the company has had positive operating performance for the past three years an upgrade is a possibility." The corporate credit rating is 'CCC+'. The Nov. 29, 2006, CreditWatch listing comes after the company's report that it had agreed to be acquired by private equity investors, MidOcean Partners, for an undisclosed sum. =================== K A Z A K H S T A N =================== ARMAN LLP: Creditors Must File Claims by Feb. 13 ------------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Arman insolvent on Nov. 16, 2006, without the introduction of bankruptcy proceedings. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Arman Sutushev Str. 58 Petropavlovsk North Kazakhstan Region Kazakhstan Tel: 8 (3152) 46-35-83 DANKAMTU OJSC: Proof of Claim Deadline Slated for Feb. 13 --------------------------------------------------------- OJSC Dankamtu has declared insolvency. Creditors have until Feb. 13 to submit written proofs of claim to: OJSC Dankamtu Muhita Str. 78 Uralsk West Kazakhstan Region Kazakhstan ELENA LLP: Claims Filing Period Ends Feb. 13 -------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Elena insolvent. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Elena Olimpiskaya Str. 8a Karaganda Karaganda Region Kazakhstan Tel: 8 701 533 50-63 ENERGOSERVICE CO: Claims Bar Date Slated for Feb. 13 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Energoservice Company insolvent on Nov. 17, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Energoservice Company Olimpiskaya Str. 8a Karaganda Karaganda Region Kazakhstan Tel: 8 701 533 50-63 ENERGOTECHSERVICE-2030 LLP: Court Begins Bankruptcy Proceedings --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan Region commenced bankruptcy proceedings against LLP Energotechservice-2030. EURO SPEN: Claims Filing Period Ends Feb. 9 ------------------------------------------- LLP Euro Spen Astana has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Euro Spen Astana Micro District Al-Farabi, 74-33 Almaty District Astana, Kazakhstan GLOBAL TRADING: Claims Registration Ends Feb. 9 ----------------------------------------------- LLP Global Trading has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Global Trading Timirazev Str. 12-13 Almaty, Kazakhstan IVANOV & K: Proof of Claim Deadline Slated for Feb. 13 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Ivanov & K on Nov. 20, 2006, insolvent without the introduction of bankruptcy proceedings. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Ivanov & K Sutushev Str. 58 Petropavlovsk North Kazakhstan Region Kazakhstan Tel: 8 (3152) 46-35-83 KAMKOR LLP: Creditors Must File Claims by Feb. 13 ------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP Kamkor insolvent on Nov. 20, 2006, without the introduction of bankruptcy proceedings. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Kamkor Sutushev Str. 58 Petropavlovsk North Kazakhstan Region Kazakhstan Tel: 8 (3152) 46-35-83 SP ROSKAZHLEB: Claims Registration Ends Feb. 13 ----------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan Region declared LLP SP Roskazhleb insolvent on Nov. 21, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until Feb. 13 to submit written proofs of claim to: LLP SP Roskazhleb Medvedev Str. 41 Petropavlovsk North Kazakhstan Region Kazakhstan Tel: 8 (3152) 33-08-72 =================== K Y R G Y Z S T A N =================== ALCAPS LLC: Creditors Meeting Scheduled for Jan. 12 --------------------------------------------------- Creditors of LLC Alcaps Free Economic Zone Bishkek will convene at 10:00 a.m. on Jan. 12 at: Room 24 Erkindik Ave. 39a Bishkek, Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Alcaps Free Economic Zone Bishkek (Case No.ED-897/06 mbs8) insolvent on Oct. 31, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The Temporary Insolvency Manager is: Ms. Bubusara Nogoibaeva Tel: (0-517) 73-67-29 CLEARING CENTRE: Creditors' Meeting Scheduled for Jan. 11 --------------------------------------------------------- The temporary insolvency manager of the Clearing Centre will conduct a creditors' meeting at 10:00 a.m. on Jan. 11 at Chui Ave. 106, Bishkek, Kyrgyzstan. Agenda: -- report of temporary insolvency manager; -- specification of account payable and account receivable; -- prolongation of the term of bankruptcy proceedings holding; and -- others. Proxies must have authorization to vote. Inquiries can be addressed to (+996 312) 62-52-31. ORIOLE IVOLGA: Creditors' Meeting Slated for Jan. 12 ---------------------------------------------------- Creditors of LLC Sport Club Oriole Ivolga will convene at 10:00 a.m. on Jan. 12 at: Room 108 Moskovskaya Str. 151 Bishkek, Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Sport Club Oriole Ivolga (Case No.ED-245/06 mbs8) insolvent on March 31, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The Temporary Insolvency Manager is: Mr. Toktogul Boronchiev Tel: (+996 312) 21-67-25 (+996 3138) 5-72-78 VOSTOK LLC: Public Auction Slated for Jan. 12 --------------------------------------------- The bidding organizer and insolvency manager of the LLC Joint Kyrgyz-American Enterprise Vostok will auction the company's bankruptcy enterprise properties at 1:00 p.m. on Jan. 12 at: Den-Saopin Ave. 18 Bishkek, Kyrgyzstan The assets for sale are: -- Lot 1: petroleum storage depot with area of 500 square meters; Location: Western Zone Balykchy Issyk-Kul Region Kyrgyzstan Starting price: KGS1,106,750 -- Lot 2: transport facilities. Starting prices: from KGS25,000 to KGS185,670 -- Lot 3: office furniture and equipment. Starting price: KGS4,125,114; and -- Lot 4: inventory holdings. Participants have until Jan. 11 to deposit an amount equivalent to 10% of the starting price to the cashier of the enterprise and submit their bids at: Den-Saopin Ave. 18 Bishkek, Kyrgyzstan Tel:(+996 312) 65-02-33 (0-502) 55-22-50 (0-502) 53-62-55 =================== L U X E M B O U R G =================== DANA CORP: Wants to Increase DIP Loan & Restructure Europe Biz -------------------------------------------------------------- In March 2006, the Honorable Burton R. Lifland of the United States Bankruptcy Court for the Southern District of New York authorized Dana Corp. and its debtor-affiliates to borrow under a US$1,450,000,000 senior secured credit facility agreement with Citicorp North America Inc., as administrative agent, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and Banc of America Securities LLC, as joint lead arrangers and bookrunners, and a syndicate of lenders and other financial institutions. The DIP Loan Agreement comprised of: -- a US$700,000,000 term loan facility, and -- a US$750,000,000 revolving credit facility. Under the DIP Loan Agreement, Dana Corporation, as borrower, and each of the other Debtors, as guarantors, are jointly and severally liable for all obligations and, as collateral, have granted security interests in substantially all of their assets, including a pledge of 66% of the equity interests of each of their material direct or indirect foreign subsidiary. The DIP Loan Agreement also contains covenants that are customarily found in similar DIP credit facilities, as well as two financial covenants specific to the Debtors' operations that require maintenance at all times of: -- availability under the revolving credit facility of at least US$100,000,000; and -- certain minimum amounts of consolidated earnings before interest, taxes, depreciation, amortization, restructuring and reorganization costs for various periods from the Petition Date through February 2008. As of Nov. 30, 2006, the Debtors' unrestricted cash totaled about US$164,500,000 and the amount available for revolving credit advances was approximately US$332,000,000, Richard H. Engman, Esq., at Jones Day, in New York, relates. The Debtors, however, expect their overall liquidity to continue to decline in the next months and ultimately become insufficient to sustain their ongoing operations unless the Court permits them to amend their DIP Loan Agreement and they are successful in realizing significant amounts of cash from both the proceeds of asset sales and from the repatriation of cash held by their non-Debtor foreign affiliates. To avoid potential liquidity issues, the Debtors seek the Court's authority to amend their DIP Loan Agreement to provide for: (1) an increase of the term loan commitments by US$200,000,000 to enhance their near-term liquidity and to mitigate timing and execution risks associated with asset sales and other cash repatriation activities that are in process and that they have previously disclosed; (2) an increase of 0.25% to the rate at which interest accrues on amounts borrowed under the term facility; (3) a reduction of certain minimum global EBITDAR covenant levels and a US$25,000,000 increase to the annual amount of cash restructuring charges that are includable in the calculation of EBITDAR: Month Period Ended Covenant EBITDAR ----- ------------ ---------------- January 2007 11 months US$200,000,000 February 2007 12 months US$200,000,000 March 2007 12 months US$175,000,000 April 2007 12 months US$175,000,000 May 2007 12 months US$170,000,000 June 2007 12 months US$170,000,000 July 2007 12 months US$185,000,000 August 2007 12 months US$200,000,000 September 2007 12 months US$200,000,000 October 2007 12 months US$230,000,000 November 2007 12 months US$250,000,000 December 2007 12 months US$250,000,000 January 2008 12 months US$250,000,000 February 2008 12 months US$250,000,000 March 2008 12 months US$250,000,000 (4) An implementation of corporate restructuring of their European non-Debtor subsidiaries that will facilitate the establishment of a European credit facility, improve treasury and cash management operations and facilitate the tax efficient repatriation of cash from Europe; and (5) Modification to allow the Debtors to receive and retain proceeds from the sale of their Trailer Axle Business without triggering a mandatory prepayment to the Lenders of the amount of proceeds received. A full-text copy of the proposed DIP Loan Amendment is available for free at http://ResearchArchives.com/t/s?1817 European Restructuring The Debtors also seek the Court's authority to restructure their European business operations. The European Restructuring contemplates non-debtor Dana Automotive Aftermarket, Inc., a United States subsidiary of Dana Corp., to form Dana European Holdings Luxembourg SARL, a Luxembourg company. Under the European Restructuring, three sets of transactions will be undertaken: 1. Luxco will purchase all of the assets of non-debtor Dana International Holdings Inc., with voting fixed rate preferred stock of DAA. Subsequently, Dana International would convert to a limited liability company under Delaware law and would transfer DAA shares to Dana Corp. 2. Luxco will acquire the shares of subsidiaries in Dana SAS (France), Spicer Nordiska Kardan AB (Sweden) and Dana Belgium NV from Dana Corp. in exchange for Luxco shares and notes. Luxco will acquire 99% interest of subsidiaries in Dana SAS. 3. Dana Corp. will contribute the shares of subsidiaries in Dana Italia SpA, Dana Europe SA (Switzerland) and Dana Europe Holdings BV (Netherlands) to DAA. DAA will contribute these shares to Luxco. After the initial transfers, Luxco will transfer the European subsidiaries to newly formed holding companies in Luxembourg and Switzerland. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries including Switzerland and Luxembourg. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances to that plan. (Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Has Until Sept. 3 to File Restructuring Plan ------------------------------------------------------- The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York extended Dana Corp. and its debtor-affiliates' exclusive periods to: -- propose a plan of reorganization through and including Sept. 3, 2007; and -- solicit acceptances of that plan through and including Nov. 2, 2007. The Official Committee of Unsecured Creditors did not object to the Debtors' request to extend their exclusive periods although it noted that the extension is unusually long. The Creditors Committee said it has taken comfort in the fact that the Debtors have prepared and submitted to the Committee a list of numerous milestones they intend to meet to timely emerge from Chapter 11 in the third quarter of 2007. The Creditors Committee noted, however, that the Debtors' ability to meet certain internally generated deadlines is not necessarily dispositive of their ability to confirm a Chapter 11 plan that maximizes creditor recoveries. The Creditors Committee said that if it determines, for any reason, that cause exists to terminate exclusivity, it reserves its right to bring a motion to terminate exclusivity. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries including Switzerland and Luxembourg. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances to that plan. (Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement ------------------------------------------------------------- Dana Corp. disclosed that in support of its ongoing reorganization and anticipated emergence from Chapter 11 bankruptcy protection later this year, the company has filed a motion in the U.S. Bankruptcy Court for the Southern District of New York, which has jurisdiction over its Chapter 11 bankruptcy proceedings under the caption In re Dana Corporation, et al., Case No. 06-10354 (BRL), seeking to amend its US$1.45 billion debtor-in- possession (DIP) credit agreement. The motion is scheduled to be heard by the court on Jan. 24, 2007. Among other things, Dana intends to reduce the amount of its unused revolving credit facility under the DIP credit agreement to correspond with changes in its borrowing base. As it continues to sell its non-core assets, these changes will adjust the structure of Dana's debt facilities to more closely align with the needs of the business. In order to ensure that Dana continues to have adequate liquidity notwithstanding such reduction, Dana is seeking court approval for an increase in the amount available under its term loan facility from US$700 million to US$900 million, as well as for certain financial covenant modifications and technical changes to its DIP credit agreement. Citigroup Corporate and Investment Banking, the administrative agent for the lenders under the DIP credit agreement, has agreed to underwrite the proposed increase in the term loan facility. "While we are pleased with the restructuring progress that Dana has achieved over the past nine months, especially under challenging market conditions, the additional funding and financing flexibility that will result from the proposed amendment position us to complete our restructuring and emerge from Chapter 11," said Dana Chairman and CEO Mike Burns. "We are also pleased with the confidence that our DIP agent, Citigroup, has demonstrated in our reorganization efforts by underwriting the proposed increase to our DIP facility." About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries including Switzerland and Luxembourg. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances to that plan. (Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). NORTEL NETWORKS: Closes US$320MM Unit Sale to Alcatel-Lucent ------------------------------------------------------------ Nortel Networks Corp. closed the sale of assets and liabilities related to its UMTS access business to Alcatel-Lucent. The sale closed on Dec. 31, 2006. The transaction is for US$320 million in cash less significant deductions and transaction related costs. The closing of the sale follows the signing of the definitive agreement on Dec. 4, 2006, and the signing of the non-binding Memorandum of Understanding between the companies on Sept. 1, 2006. As part of the agreement, approximately 1,700 of Nortel's UMTS access employees have transferred to Alcatel-Lucent. Regulatory approvals have been met. With the completion of this sale, Alcatel-Lucent acquired the UMTS access product portfolio, associated patents and tangible assets as well as customer contracts from Nortel. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. * * * As reported in the Troubled Company Reporter on Oct. 5, 2006, Moody's Investors Service upgraded its B3 Corporate Family Rating for Nortel Networks Corp. to B2. ===================== N E T H E R L A N D S ===================== HERBALIFE LTD: Expects Higher Sales for 2006 Fourth Quarter ----------------------------------------------------------- Herbalife Ltd. anticipates reporting record net sales between US$482.7 million and US$484.7 million for its fourth quarter ended Dec. 31, 2006, when it files its annual report on Form 10- K in late February 2007, reflecting a year-over-year increase between 18.0% and 18.5%. The expected net sales results reflect strong double-digit growth in the U.S., Mexico and several South American and Southeast Asian markets. "Our distributors had a tremendously successful year expanding their businesses into new markets and more deeply penetrating existing markets," said Michael O. Johnson, the company's chief executive officer. "As a result, we believe the 2006 goal of exceeding US$3.0 billion in retail sales has been achieved," he continued. Based on its expected net sales growth, the company anticipates that fourth quarter 2006 diluted earnings per share will be within its previously announced range of US$0.52 to US$0.55, excluding expenses associated with its realignment for growth initiative. 2007 Guidance Based upon its preliminary fourth quarter 2006 financial results, the company is updating its full year 2007 guidance to reflect current business trends and is also providing first quarter 2007 guidance. For the full year 2007, the company is reaffirming its previously announced diluted earnings per share guidance of US$2.40 to US$2.47, excluding expenses associated with its realignment for growth initiative. This guidance reflects net sales growth of between 6.0% and 10.0% (compared with 10.0% to 15.0% initially issued on Nov. 6, 2006), coupled with improved operating margins and a lower effective tax rate. The company's outlook for net sales growth in 2007 reflects current business trends, primarily slower than expected net sales growth in Mexico. The company expects the adverse impact on overall 2007 net sales growth from this recent trend in Mexico will be partially offset by net sales growth in several other countries, primarily the U.S. The company is also providing first quarter 2007 guidance with expected net sales growth in the range of between 6.0% and 10.0%, an effective tax rate between 35.0% and 36.0% and diluted earnings per share guidance in the range of US$0.50 to US$0.55, excluding expenses associated with its realignment for growth initiative. About Herbalife Ltd. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., and Guadalajara, Mexico. * * * Standard & Poor's Ratings Services rated Herbalife Ltd.'s long- term foreign and local issuer credit ratings at BB+. TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend ----------------------------------------------------------- Teekay Shipping Corp.'s Board of Directors has voted to declare a cash dividend on its common stock of US$0.2375 per share, payable on Jan. 26, 2007, to all shareholders of record as at Jan. 12, 2007. About Teekay Teekay Shipping Corp., a Marshall Islands corporation headquartered in Nassau, Bahamas, transports more than 10% of the world's seaborne oil and has expanded into the liquefied natural gas shipping sector through its publicly listed subsidiary, Teekay LNG Partners L.P., and into the offshore production, storage and transportation sector through its publicly listed subsidiary, Teekay Offshore Partners L.P. With a fleet of over 140 tankers, offices in 17 countries and 5,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. In Europe, the country maintains offices in Germany, Luxembourg, the Netherlands, Spain, and the United Kingdom, among others. * * * As reported in the TCR-Europe on Dec. 22, 2006, Moody's Investors Service has downgraded the ratings of Teekay Shipping Corporation -- Corporate Family to Ba2 from Ba1, and senior unsecured to Ba3 from Ba2. Moody's also affirmed the SGL-2 Speculative Grade Liquidity rating. Moody's said the rating outlook was changed to negative. =========== N O R W A Y =========== AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio --------------------------------------------------------------- Aker Kvaerner signed a US$105-million contract to upgrade the Kyger Creek power plant in Ohio, Aftenposten English reports. Aker Kvaerner will build a sulfur dioxide removal facility at the power plant. The contract is Aker Kvaerner's third of its type in the U.S. power market in the last five years, Aftenposten relates. The company expects to complete the project in 2009. "The market for power stations with different energy sources is growing quickly in the U.S.A., Torbjorn Andersen, Aker Kvaerner Information Director, said. "The focus on environmentally friendly technology is growing, and the possibilities for further activity are good." About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, 2006, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. =========== R U S S I A =========== CHRYSOLITE CJSC: Creditors Must File Claims by Jan. 16 ------------------------------------------------------ Creditors CJSC Chrysolite have until Jan. 16 to submit written proofs of claim to: S. Suvorov, Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-38581/06-123-682B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Chrysolite Vorontsovskaya Str. 23 Moscow Region Russia CHUVASH-ALCO OJSC: Creditors Must File Claims by Jan. 16 -------------------------------------------------------- Creditors OJSC Chuvash-Alco have until Jan. 16 to submit written proofs of claim to: I. Gorn, the Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-42099/06-123-878B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Chuvash-Alco Room 1 Nezhinskaya Str. 17 Moscow Region Russia COMPANY-WEST OJSC: Creditors Must File Claims by Jan. 16 -------------------------------------------------------- Creditors OJSC Building Company-West have until Jan. 16 to submit written proofs of claim to: I. Gorn, the Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-49819/06-71-1090B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC Building Company-West Rublevskoye Shosse 38 Moscow Region Russia COMPUTER LAND: Creditors Must File Claims by Jan. 16 ---------------------------------------------------- Creditors CJSC Computer Land have until Jan. 16 to submit written proofs of claim to: I. Gorn, the Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-48369/06-71-1050B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Computer Land Milashenkova Str. 20 Moscow Region Russia DAL-TRANS-STORY OJSC: Creditors Must File Claims by Jan. 16 ----------------------------------------------------------- Creditors OJSC Dalnevostochnyj Specialized Trust Dal-Trans-Stroy have until Jan. 16 to submit written proofs of claim to: G. Chmutina, Temporary Insolvency Manager Office 806 Sheronova Str. 56 A 680000 Khabarovsk Region Russia The Arbitration Court of Khabarovsk Region commenced bankruptcy supervision procedure on OJSC Dalnevostochnyj Specialized Trust Dal-Trans-Stroy. The case is docketed under Case No. A73-5215/2006-39. The Debtor can be reached at: OJSC Dalnevostochnyj Specialized Trust Dal-Trans-Story Sheronova Str. 56 Khabarovsk Region Russia ENEGRO-OIL CJSC: Creditors Must File Claims by Jan. 16 ------------------------------------------------------ Creditors CJSC Enegro-Oil have until Jan. 16 to submit written proofs of claim to: I. Gorn, the Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-48989/06-71-1075B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Enegro-Oil 3rd Setunskiy Pr. 10 Moscow Region Russia EURO-ASIATIC METALLURGIC: Creditors Must File Claims by Jan. 16 --------------------------------------------------------------- Creditors CJSC Euro-Asiatic Metallurgic Company have until Jan. 16 to submit written proofs of claim to: S. Suvorov, Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-38594/06-123-695B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Euro-Asiatic Metallurgic Company Building 2 Serebryanicheskiy Per. 5 Moscow Region Russia ISTOK CJSC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Novgorod Region commenced bankruptcy supervision procedure on CJSC Istok. The case is docketed under Case No. A 44-2554/2006-15k. The Temporary Insolvency Manager is: A. Kulikov 3rd floor Novinskiy Avenue 11 121099 Moscow Region Russia The Debtor can be reached at: CJSC Istok B. Sankt-Peterburgskaya Str. 107 173008 Velikiy Novgorod Region Russia MOSCOW-KUBAN-CHELYABINSK: Creditors Must File Claims by Jan. 16 --------------------------------------------------------------- Creditors CJSC Moscow-Kuban-Chelyabinsk have until Jan. 16 to submit written proofs of claim to: I. Gorn, the Insolvency Manager Post User Box 183 127018 Moscow Region Russia The Arbitration Court of Moscow Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-40681/06-73-825B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Moscow-Kuban-Chelyabinsk Rooms 127, 128 Building 2 Slavyanskaya Square 4 Moscow Region Russia NAMED AFTER: Kurgan Bankruptcy Hearing Slated for Feb. 28 --------------------------------------------------------- The Arbitration Court of Kurgan Region will convene at 1:30 p.m. on Feb. 28 to hear the bankruptcy supervision procedure on CJSC Named After Kirov. The case is docketed under Case No. A34-6767/2006. The Temporary Insolvency Manager is: S. Domas Post User Box 137 Taganskaya Str., 51 620051 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Named After Kirov Malysheva Kargopolskiy Region 641917 Kurgan Region Russia PEAT-SERVICE CJSC: Creditors Must File Claims by Jan. 16 -------------------------------------------------------- Creditors CJSC Peat-Service have until Jan. 16 to submit written proofs of claim to: P. Kapkin, Insolvency Manager Apartment 18 Yubileynaya Str. 87A 180016 Pskov Region Russia The Arbitration Court of Pskov Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A52-3723/2006/4. The Arbitration Court of Pskov Region is located at: Nekrasova Str. 23 Pskov Russia The Debtor can be reached at: CJSC Peat-Service Frunze Str. 30-A Pskov Region Russia PRIONEZHSKIY WOOD: Creditors Must File Claims by Feb. 16 -------------------------------------------------------- Creditors LLC Prionezhskiy Wood have until Feb. 16 to submit written proofs of claim to: V. Podolyanchik, Insolvency Manager Post User Box 114 Petrozavodsk 185030 Kareliya Republic Russia The Arbitration Court of Kareliya Republic commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A26-3934/2006-184. The Arbitration Court of Kareliya Republic is located at: Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Republic Russia The Debtor can be reached at: LLC Prionezhskiy Wood Dzerzhinskogo Str. 20 Petrozavodsk 185035 Kareliya Republic Russia TRANSPORT ENTERPRISE: Bankruptcy Hearing Slated for March 29 ------------------------------------------------------------ The Arbitration Court of Chelyabinsk Region will convene on March 29 to hear the bankruptcy supervision procedure on LLC Transport Enterprise (TIN 7445025323). The case is docketed under Case No. A76-18813/2006-60-186. The Temporary Insolvency Manager is: A. Kuzmin, Temporary Insolvency Manager Apartment 39 Pervomayskaya Str. 8 Magnitogorsk 455000 Chelyabinsk Region Russia The Arbitration Court of Chelyabinsk Region is located at: Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: LLC Transport Enterprise Profsoyuznaya Str. 8 Magnitogorsk 455000 Chelyabinsk Region Russia VYSHNEVOLOTSKIY TEXTILE: Bankruptcy Hearing Slated for April 25 --------------------------------------------------------------- The Arbitration Court of Tver Region will convene on April 25 to hear the bankruptcy supervision procedure on CJSC Vyshnevolotskiy Textile. The case is docketed under Case No. A66-9288/2006. The Temporary Insolvency Manager is: A. Popova Office 9 Rumyantseva Str. 9 Tver Region Russia The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: CJSC Vyshnevolotskiy Textile Krasnaya Str. 1 V. Volochek Tver Region Russia ===================== S W I T Z E R L A N D ===================== BH OEKO-BAU: Zug Court Starts Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC BH Oeko-bau on Oct. 2, 2006. The Debtor can be reached at: LLC BH Oeko-bau Altgasse 82 6340 Baar Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland CLIENT-SERVER EDV: Eglisau Court Starts Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Court of Eglisau commenced bankruptcy proceedings against LLC Client-Server EDV Schweiz on Oct. 5, 2006. The Debtor can be reached at: LLC Client-Server EDV Schweiz Mattenweg 1 8192 Glattfelden Zurich Switzerland The Bankruptcy Service of Eglisau can be reached at: Bankruptcy Service of Eglisau 8193 Eglisau Zurich Switzerland FIDELIUS JSC: Zug Court Suspends Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of JSC Fidelius 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 30, 2006, can be reached at: JSC Fidelius Untermuli 6 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland GROUPE MOBILITE: Zug Court Suspends Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Zug suspended the bankruptcy proceedings of JSC Groupe Mobilite 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 CHF9,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Oct. 4, 2006, can be reached at: JSC Groupe Mobilite Metallstrasse 6 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland MORTEZAWI BUILDING: Zug Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against Mortezawi Building Systems Ltd Holding on Oct. 17, 2006. The Debtor can be reached at: Mortezawi Building Systems Ltd Baarerstrasse 75 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland NOVELIS INC: Noteholders Swap US$1.4 Billion Notes for New Debt --------------------------------------------------------------- Novelis Inc. disclosed that its offer to exchange its US$1,400,000,000 7-1/4% Senior Notes due 2015, Series B, which have been registered under the Securities Act of 1933, as amended, for an equal principal amount of its outstanding 7-1/4% Senior Notes due 2015 which were initially issued and sold in a private placement on Feb. 3, 2005, expired at 5:00 pm Eastern Time on Jan. 4, 2007. According to information provided by the exchange agent for the exchange offer, an aggregate principal amount of US$1,379,057,000 of old notes was validly tendered and not validly withdrawn on or before the expiration date. The remaining old notes will remain outstanding and the two-year Rule 144(k) holding period with respect to the old notes will expire on Feb. 3, 2007. The company will cease paying special interest on the notes effective immediately. On Jan. 5, 2007, Novelis expected to deliver an aggregate principal amount of approximately US$1,379,057,000 of new notes for the old notes accepted for exchange. In addition, Novelis may deliver additional new notes subsequent to Jan. 5, 2007, in exchange for old notes tendered pursuant to guaranteed delivery procedures which may be delivered after the original expiration of the exchange offer. Any holder of the old notes who would like to obtain copies of the prospectus and related documents or who has questions regarding the exchange offer may contact Novelis Inc.'s exchange agent at: The Bank of New York Trust Company, N.A. Tel: (212) 815-5098 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. The company has facilities in Hong Kong, Malaysia, Canada, U.S. and Switzerland, among others. * * * 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% OBERDORF-APOTHEKE BAAR: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC Oberdorf-Apotheke, Baar on Oct. 17, 2006. The Debtor can be reached at: JSC Oberdorf-Apotheke, Baar Oberdorfstrasse 6a 6340 Baar Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland RAUL RICARDO: Schlieren Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Schlieren commenced bankruptcy proceedings against LLC Raul Ricardo Alarcon on Oct. 17, 2006. The Debtor can be reached at: LLC Raul Ricardo Alarcon Eichacherstrasse 5 8904 Aesch Zurich Switzerland The Bankruptcy Service of Schlieren can be reached at: Bankruptcy Service of Schlieren 8952 Schlieren Zurich Switzerland RIET-GARAGE JSC: Court Starts Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Niederglatt ZH commenced bankruptcy proceedings against JSC Riet-Garage on Nov. 2, 2006. The Debtor can be reached at: JSC Riet-Garage Niederglatt Kaiserstuhlstr 64 8172 Niederglatt Zurich Swizerland The Bankruptcy Service of Niederglatt ZH can be reached at Bankruptcy Service of Niederglatt ZH 8172 Niederglatt Zurich Swizerland VARIA HOLDING: Zug Court Starts Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC Varia Holding on Oct. 9, 2006. The Debtor can be reached at: JSC Varia Holding Industriestrasse 16 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland VXG VERMOGENSVERWALTUNG: Court Starts Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Court of Zurich-Altstadt commenced bankruptcy proceedings against JSC VXG Vermogensverwaltung, on Oct. 16, 2006. The Debtor can be reached at: JSC VXG Vermogensverwaltung Bahnhofstrasse 48 8001 Zurich Switzerland The Bankruptcy Service of Zurich-Altstadt can be reached at: Bankruptcy Service of Zurich-Altstadt 8022 Zurich Switzerland ============= U K R A I N E ============= KERCHLIFT: Claims Submission Deadline Set January 18 ---------------------------------------------------- Creditors of State Enterprise Kerchlift (code EDRPOU 24040062) have until Jan. 18 to submit written proofs of claim to: Alexander Borisenko, Temporary Insolvency Manager Kuibysheva 15 Simferopol 98300 AR Krym Region Ukraine The Economic Court of AR Krym Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 2-31/14291-2006. The Economic Court of AR Krym Region is located at: Karl Marks Str. 18 Simferopol 95000 AR Krym Region Ukraine The Debtor can be reached at: State Enterprise Kerchlift Aivazovskiy Str. 26 Kerch 98300 AR Krym Region Ukraine KOZACHOK OJSC: Creditors Must File Claims by January 18 ------------------------------------------------------- Creditors of OJSC Kozachok (code EDRPOU 25003726) have until Jan. 18 to submit written proofs of claim to: Vladimir Shmal, Liquidator Shevchenko Str. 231 Nikopol 53200 Dniepropetrovsk Region Ukraine The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company on Dec. 12, 2006, after finding it insolvent. The case is docketed under Case No. B 15/229-06. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor can be reached at: OJSC Kozachok Shevchenko Str. 231 Nikopol 53200 Dniepropetrovsk Region Ukraine KRASNOGORSKOE CJSC: Creditors Must File Claims by January 18 ------------------------------------------------------------ Creditors of CJSC Krasnogorskoe have until Jan. 18 to submit written proofs of claim to: Sergey Zozulya, Liquidator Shevchenko Boulevard 250 Cherkassy Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy proceeding against the company on Nov. 17, 2006, after finding it insolvent. The case is docketed under Case No. 01/5250. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: CJSC Krasnogorskoe Antipovka Zolotonosha District 19733 Cherkassy Region Ukraine LAN CJSC: Creditors Must File Claims by January 18 -------------------------------------------------- Creditors of CJSC Lan (code EDRPOU 31214593) have until Jan. 18 to submit written proofs of claim to: Sergey Zozulya, Liquidator Shevchenko Boulevard 250 Cherkassy Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 10/5498. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: CJSC Lan Voznesenskoe Zolotonosha District 19743 Cherkassy Region Ukraine NVP SOLAR: Creditors Must File Claims by January 18 --------------------------------------------------- Creditors of LLC NVP Solar (code EDRPOU 33194239) have until Jan. 18 to submit written proofs of claim to: V. Tyschenko Bliuhera Str. 11 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Dec. 15, 2006, after finding it insolvent. The case is docketed under Case No. 24/874-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 NVP Solar Bliuhera Str. 11 Kyiv Region Ukraine TECO-BUD LLC: Creditors Must File Claims by January 18 ------------------------------------------------------ Creditors of LLC Teco-Bud (code EDRPOU 33194354) have until Jan. 18 to submit written proofs of claim to: O. Ilyin LLC Teco-Bud Degtiarevskaya 31 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Dec. 15, 2006, after finding it insolvent. The case is docketed under Case No. 24/876-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 Teco-Bud Degtiarevskaya 31 Kyiv Region Ukraine TH DISKONTI: Creditors Must File Claims by January 18 ----------------------------------------------------- Creditors of LLC TH Diskonti (code EDRPOU 33194202) have until Jan. 18 to submit written proofs of claim to: P. Gavriliuka, Liquidator Bliuhera Str. 11 Kyiv Region Ukraine The Economic Court of Kyiv commenced bankruptcy proceeding against the company on Dec. 15, 2006, after finding it insolvent. The case is docketed under Case No. 24/875-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 TH Diskonti Bliuhera Str. 11 Kyiv Region Ukraine YABLUNEVE CJSC: Creditors Must File Claims by January 18 -------------------------------------------------------- Creditors of CJSC Yabluneve (code EDRPOU 31214588) have until Jan. 18 to submit written proofs of claim to: Sergey Zozulya, Liquidator Shevchenko Boulevard 250 Cherkassy Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy proceeding against the company on Nov. 20, 2006, after finding it insolvent. The case is docketed under Case No. 10/5499. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: CJSC Yabluneve Gladkovschina Zolotonosha District 19720 Cherkassy Region Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANCED MARKETING: Organizational Meeting Scheduled for Friday --------------------------------------------------------------- The U.S. Trustee for Region 3 will hold an organizational meeting to appoint an official committee of unsecured creditors in Advanced Marketing Services, Inc. and its debtor-affiliates' chapter 11 cases at 10:00 a.m., on Friday, Jan. 12, 2006, at the Double Tree Hotel, 700 King Street, Salon L in Wilmington, Delaware. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. However, a representative of the Debtors will attend and provide background information regarding the cases. Creditors interested in serving on a Committee should complete and return to the U.S. Trustee a statement indicating their willingness to serve on an official committee. Official creditors' committees, constituted under Section 1102 of the Bankruptcy Code, ordinarily consist of the seven largest creditors who are willing to serve on a committee. In some Chapter 11 cases, the U.S. Trustee is persuaded to appoint multiple creditors' committees. Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes that the reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio --------------------------------------------------------------- Aker Kvaerner signed a US$105-million contract to upgrade the Kyger Creek power plant in Ohio, Aftenposten English reports. Aker Kvaerner will build a sulfur dioxide removal facility at the power plant. The contract is Aker Kvaerner's third of its type in the U.S. power market in the last five years, Aftenposten relates. The company expects to complete the project in 2009. "The market for power stations with different energy sources is growing quickly in the U.S.A., Torbjorn Andersen, Aker Kvaerner Information Director, said. "The focus on environmentally friendly technology is growing, and the possibilities for further activity are good." About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, provides engineering and construction services, technology products and integrated solutions. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C. The group operates in Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany, Netherlands, Poland, Russia, Spain, Sweden, United Kingdom, Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Brazil, Chile, Canada and the United States. * * * As reported in the TCR-Europe on April 26, 2006, Moody's Investors Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring- fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. Moody's said the outlook on all ratings is stable. ARROW ELECTRONICS: Highlights Business Achievements in 2006 ----------------------------------------------------------- Arrow Electronics marks 2006 a year of significant progress for the company. This is evident through the achievements and milestones in all aspects of the business worldwide. Arrow expanded geographically and in key vertical markets. The 2006 timeline highlights some of those achievements: * January -- named "Distributor of the Year" in Denmark by the Elisa Group, a consortium of leading Danish electronics Manufacturers. * February -- elected Richard S. Hill to the board of directors; -- named one of Fortune's Most Admired Companies for the sixth consecutive year; -- reported strong fourth quarter results and annual sales at highest levels in five years; -- acquired SKYDATA, a value-added distributor of data storage solutions in Canada; and -- created a new industry lighting group to support the growing end-user market for lighting technology solutions. * March -- dedicated the new lobby at corporate headquarters to the victims of the 1980 fire; and -- named Peter T. Kong as president, Arrow Asia/Pacific. * April -- reported year-over-year net income growth of 43 percent and the 13th consecutive quarter of year-over-year sales growth; -- created a software group in enterprise computing to support new market opportunities. * May -- elected William E. Mitchell as chairman of the board and Daniel W. Duval became lead director; -- formed a new industrial group dedicated to serving the needs of manufacturers in the industrial market. * June -- named one of the "Most Preferred International Distributors" in China in Electronics Supply & Manufacturing - China (ESMC) customer survey. * July -- reported net income advanced 59 percent over prior year; record second quarter sales and earnings in excess of expectations; -- opened new office in Pune, India, one of the fastest growing markets in Asia Pacific. * August -- launched Voice of the Supplier workshop in North America -- Received top ranking in annual ESMC Distributor Customer Preference Study in China; * September -- ranked as "Top Specialty Distributor" in Computer Reseller News (CRN) sourcing study in North America; -- named Michael J. Long as president, Arrow Global Components; -- named Philippe Combes as president, Arrow EMEASA and Germano Fanelli as chairman, Arrow EMEASA; -- named Vincent Melvin as chief information officer. * October -- recognized by InformationWeek as one of the most innovative companies of information technology; -- reported net income soared 35 percent. * November -- acquired Alternative Technology, a U.S. distributor of enterprise computing solutions -- named number one "Most Sourced Specialty Distributor" by CRN; -- ranked first by customers in both Asia and China in EDN's Worldwide Semiconductor and IC Brand Study; * December -- acquired the storage and security distribution business of InTechnology plc. in the United Kingdom; -- appointed M. Catherine Morris and Kevin Gilroy to the Arrow Enterprise Computing Solutions (ECS) Office of the President -- contributed US$125,000 to 11 nonprofit organizations to help bring holiday cheer to local communities 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. AVISTAR COMMS: Inks New US$10-Million Revolving Credit Facility --------------------------------------------------------------- Avistar Communications Corp. signed a US$10 million dollar revolving credit facility with a major financial institution. This new facility provides for up to US$10 million in debt financing to be used to fund business operations, and has an initial term through December 2007. The credit facility is subject to customary terms and conditions, including several reporting and non-financial covenants. "With this revolving credit facility in place, Avistar Communications Corporation has additional financial flexibility to take advantage of opportunities in the video collaboration marketplace in 2007," stated Robert J. Habig, Chief Financial Officer of Avistar. The credit facility is secured by the grant of a security interest in all of Avistar's assets, tangible and intangible. The facility is also supported by a personal collateralized guaranty from Gerald J. Burnett, Chairman and Chief Executive Officer of Avistar, increasing the accessibility of the line. Avistar Communications Corporation (NASDAQ: AVSR) -- http://www.avistar.com/-- develops, markets, and supports a video collaboration platform for the enterprise, all powered by the AvistarVOS(TM) software. Founded in 1993, Avistar is headquartered in Redwood Shores, California, with sales offices in New York and London. Collaboration Properties, Inc. (CPI), a wholly owned subsidiary of Avistar, holds a current portfolio of 71 patents for inventions in the primary areas of video and network technology. CPI pursues patents for presence-based interactions, desktop video, recorded and live media at the desktop, multimedia documents, data sharing, and a rich-service network video architecture that supports Avistar's product suite and customers. CPI offers licenses to its patent portfolio and Avistar's video-enabling technologies to companies in the video conferencing, rich-media services, public networking, and related industries. At Sept. 30, 2006, Avistar Communications' balance sheet showed a total stockholders' deficit of US$7,303,000, compared to a deficit of US$4,158,000 at Dec. 31, 2005. BALDOR ELECTRIC: S&P Assigns BB- Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Rating Services assigned its 'BB-' corporate credit rating to Fort Smith, Ark.-based Baldor Electric Co. At the same time, Standard & Poor's assigned its 'BB' bank loan ratings and recovery ratings of '1' to the company's proposed US$1-billion seven-year, senior secured term loan and US$200- million five-year revolving credit facility, indicating the expectation of full recovery of principal (100%) in the event of a payment default. Also, the company's proposed US$550 million 10-year senior unsecured notes were rated 'B' and the proposed US$150-million three-year mandatory redeemable preferred stock was rated 'B-'. The rating on the preferred stock applies to the company's obligation to service the preferred stock until conversion, as well as its obligation to issue common shares under the conversion terms. The rating does not pertain to the safety of principal. The preferred stock value depends on the market value of the company's common shares, and is not addressed by the credit rating. Proceeds from the financing will be used to acquire the Power Systems business from Rockwell Automation (A/Stable/A-1) and to refinance existing debt. Total balance sheet debt following the transaction will be approximately US$1.55 billion. "The ratings reflect Baldor's aggressive financial profile following the proposed acquisition of Rockwell Automation's Power Systems business and the highly competitive and cyclical industry in which the company operates. This is somewhat offset by the company's leading share in the domestic industrial electric motors market and good operating margins," said Standard & Poor's credit analyst Dan Picciotto. Following the acquisition, Baldor Electric will design and manufacture motors (around 63% of sales), power transmission systems (28%), drives (6%), and generators (3%). The company will have leading domestic share in the industrial electric motor market offered under the Baldor and Reliance brands. COLLINS & AIKMAN: Has Until March 14 to Decide on Becker Leases ---------------------------------------------------------------- The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan extends the time within which Collins & Aikman Corp. and its debtor-affiliates must assume, assume and assign or reject unexpired leases of non-residential real property with Becker Properties LLC and Anchor Court LLC through and including March 14, 2007. As reported in the Troubled Company Reporter on Dec. 5, 2006, the Leases are: -- 6600 East Fifteen Mile Road, Sterling Heights, Michigan; -- 1601 Clark Road, Havre de Grace, Maryland; and -- 47785 West Anchor Court, Plymouth, Michigan. The Debtors will be unable to determine whether to assume or reject the Leases until they have selected the highest and best offer for the contemplated sale of all or part of their businesses. Without the extension, the Debtors will be at risk of assuming the Leases that the selected purchaser might deem unnecessary or impractical, or rejecting the Leases that the purchaser might deem essential to the operations of the Debtors' businesses. Thus, it would make no economic or practical sense to compel the Debtors to assume or reject the Leases at this time. In addition, Becker and Anchor Court are not damaged by the Debtors' continued occupation of the properties covered by the Leases. As of Nov. 29, 2006, the Debtors are complying with their postpetition obligations related to the Leases on a timely basis. Moreover, maintenance of the Leases is essential to the Debtors' continued operations without further complicating the Debtors' ability to confirm a plan in their Chapter 11 cases. The Debtors reserve their right to seek further extensions of the Lease Decision Period. 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) COLLINS & AIKMAN: Can File ASC Inc. License Pact Under Seal ----------------------------------------------------------- The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan authorized Collins & Aikman Corp. and its debtor-affiliates to file under seal a settlement and license agreement between Dura Convertible Systems Inc. and ASC Incorporated resolving litigation between them. Dura Convertible is Collins & Aikman's debtor-affiliate. As reported in the Troubled Company Reporter on Dec. 20, 2006, ASC commenced on March 30, 2006, Adversary Proceeding No. 06-04507 in the Bankruptcy Court against Dura. The ASC Complaint alleged four counts of patent infringement relating to convertible tops produced by Dura for the Dodge Viper and Ford Mustang. Specifically, the ASC Complaint alleged infringement of: (a) U.S. Reissue Patent No. RE38,546; (b) U.S. Design Patent No. D442,541; (c) U.S. Design Patent No. D464,605 and (d) U.S. Patent No. 5,785,375. Dura filed its answer to the ASC Complaint on June 21, 2006, and asserted counterclaims seeking declaratory judgments of non- infringement and invalidity of the ASC Patents. The Bankruptcy Court held an initial scheduling conference on Aug. 14, 2006. The triable issues of (a) liability and (b) damages were bifurcated and the Court entered an order setting a trial date of Jan. 9, 2007, on the issue of liability. The parties have each served discovery requests on the issues of liability and damages. To alleviate the potential costs to the Debtors' estates, Dura requested that the discovery process be bifurcated as well, however, this request was denied. Dura produced hundreds of thousands of documents and responded to ASC's written discovery. On the verge of spending exorbitant sums to conduct discovery, the Parties agreed to a stay of discovery as they pursue a settlement. Dura and ASC have engaged in significant negotiations to resolve the ASC Lawsuit. Dura and ASC have agreed to resolve the ASC Lawsuit pursuant to the terms and conditions in the Settlement. The Settlement provided, among other things, that Dura will have a license to the ASC Patents for the Ford Mustang and Dodge Viper convertible roof assemblies. The Settlement also allows for the assignment of the license for the ASC Patents to a potential purchaser. The Debtors also agree to pay for a royalty fee, which is far less than the royalty fee that would likely be determined in the event that ASC were to prevail in the ASC Lawsuit. The Ford Mustang and Dodge Viper convertible roof systems can continue to be manufactured and sold at a profit by Dura after paying the royalty fee to ASC. Outside of the bankruptcy process, the information contained in the Settlement generally is held to be confidential because, otherwise, Dura and ASC believe would be competitively disadvantaged in the operation of their businesses by the disclosure of the information. The ASC licenses the ASC Patents for use by Dura in the production and sale of convertible roof systems for the Ford Mustang and Dodge Viper. If the competitors of Dura or ASC knew the terms of the Settlement, it could provide them with a competitive advantage in their dealings with ASC or Dura, as the case may be. Further, if Dura's customers were aware of the terms of the Settlement, it could provide them with a competitive advantage in negotiating agreements with Dura. 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) DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker ---------------------------------------------------------- DURA Automotive Systems Inc. and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Miller Buckfire & Co., LLC, as their investment banker. Miller Buckfire is an independent firm that provides strategic and financial advisory services in large-scale corporate restructuring transactions. The firm is owned and controlled by Henry S. Miller and Kenneth A. Buckfire and by the employees of Miller Buckfire. Miller Buckfire currently has approximately 45 employees, many of whom were employees of the Financial Restructuring Group of Dresdner Kleinwort Wasserstein, Inc., before July 16, 2002. The firm's professionals are providing or have provided financial advisory, investment banking, and other services in connection with the restructuring of, among others: -- Acterna Corporation, -- Allied Holdings, Inc., -- Aurora Foods, Inc., -- Burlington Industries, -- Calpine Corporation, -- Dana Corporation, -- Delta Air Lines, Inc., -- Dow Corning Corporation, -- EaglePicher Holdings, Inc., -- Exide Technologies, -- FLYi, Inc., -- Foamex International, -- Interstate Bakeries Corporation, -- Kmart Corporation, -- Loewen Group, -- McLeodUSA, -- Mirant Corp., -- Pegasus Satellite Communications, -- PSINet, -- Polaroid Corporation, -- The Spiegel Group, and -- TECO Energy Keith Marchiando, chief financial officer, relates that the Debtors employed Miller Buckfire in early August 2006. Since that time, the firm, among others, has: (a) analyzed the Debtors' current liquidity and projected cash flow; (b) assisted the Debtors in evaluating their restructuring alternatives; and (c) conducted a comprehensive process to secure debtor-in- possession financing for the Debtors on the most competitive terms and conditions available on the Debtors' behalf. As a result, Miller Buckfire acquired significant knowledge of the Debtors and their businesses and is now intimately familiar with the Debtors' financial affairs, debt structure, operations and related matters, Mr. Marchiando says. Pursuant to an engagement letter dated Aug. 2, 2006, at the request and direction of the Debtors, Miller Buckfire will: (a) advise and assist the Debtors in structuring and effectuating the financial aspects of any restructuring or sale transactions proposed to be undertaken by the Debtors; (b) if applicable, identify, solicit, and negotiate with potential lenders or investors in connection with any financing or potential acquirers in connection with any sale; (c) provide financial advice and assistance to the Debtors in developing and seeking approval of a restructuring plan, including participating in negotiations with entities or groups affected by the plan; and (d) participate in hearings before the Court with respect to the matters upon which Miller Buckfire has provided advice, including, as relevant, coordinating with the Debtors' counsel with respect to testimony in connection with its work. In a separate application, the Debtors also wish to employ Glass & Associates, Inc., as their financial advisors. The Debtors believe the two firms will not duplicate the services of each other because they will be performing unique functions. According to the Debtors, Miller Buckfire will focus on structuring, evaluating, and assisting the consummation of a financial restructuring and any related financings and sale transactions, while Glass will focus on evaluating, overseeing, and assisting the Debtors in the financial aspects of its operational restructuring. "In short, Miller Buckfire will carry out distinct functions and will use reasonable efforts to coordinate with the Debtors' other retained professionals to avoid the unnecessary duplication of services," Mr. Marchiando says. The Debtors will pay Miller Buckfire: -- a US$200,000 monthly advisory fee; provided that 50% of the amount of any Monthly Advisory Fee in excess of US$800,000 (four months of Monthly Advisory Fees) paid to Miller Buckfire will be credited to the extent actually paid against any Restructuring Transaction Fee payable to Miller Buckfire; -- a US$6,700,000 Restructuring Transaction Fee, after taking account for a credit for 50% of the DIP Financing Fee paid to Miller Buckfire before the Petition Date, if the Debtors consummate a Restructuring Transaction; -- a Sale Transaction Fee of 1% of the Aggregate Consideration, if the Debtors consummate a Sale Transaction; and -- a Financing Fee of 3% of the gross proceeds of any indebtedness issued that is unsecured or subordinated, and 5% of the gross proceeds of any equity or equity-linked securities or obligations issued, if the Debtors consummate any Financing Transaction. The Debtors will reimburse the firm for all reasonable out-of- pocket expenses. Mr. Marchiando says the Fee Structure is consistent with Miller Buckfire's normal and customary billing practices for comparably sized and complex cases. The Debtors compared Miller Buckfire's proposed fees with other proposals received and the range of investment banking fees in other large and complex Chapter 11 cases. In both cases, the Debtors found Miller Buckfire's proposed fees to be reasonable and within the range of other comparable transactions. The firm will file interim and final fee applications with the Court. Although Miller Buckfire does not charge for its services on an hourly basis, Miller Buckfire will maintain time records in half-hour increments. Before their bankruptcy filing, the Debtors paid Miller Buckfire $2,600,000 for fees and an expense reimbursement of US$25,061. The firm holds a US$500,000 retainer for fees and expenses. As of the date of filing for chapter 11 protection, Miller Buckfire did not hold a prepetition claim against the Debtors for services rendered. Marc D. Puntus, a managing director at Miller Buckfire & Co., LLC, relates the Court that neither he nor Miller Buckfire nor any of its professional employees have any connection with the Debtors, their creditors, the U.S. Trustee or any other potential parties-in-interest in the Debtors' cases, or their attorneys and accountants, except in some circumstances including: (a) prior to the Petition Date, Miller Buckfire's professionals performed services for the Debtors; (b) Miller Buckfire may have performed services to certain of the Debtors' creditors in matters unrelated to the Chapter 11 cases, including but not limited to affiliates of JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of America, N.A., Wells Fargo Foothill, LLC, Credit Suisse Group, among others; (c) from time to time, Miller Buckfire also may have had dealings on other unrelated matters with some of the other professionals who are providing, or are expected to provide, services in the Debtors' cases, including, without limitation: * Kirkland & Ellis LLP -- the Debtors' proposed counsel, * Glass & Associates, Inc. -- the Debtors' proposed turnaround consulting firm, * Bingham McCutchen LLP -- counsel to certain prepetition second lien lenders, * Lazard Ltd. -- advisors to counsel to certain prepetition second lien lenders, * The Blackstone Group -- advisors to the senior noteholders, and * Fried Frank Harris Shriver & Jacobson LLP -- counsel to the senior noteholders "Miller Buckfire and the employees of Miller Buckfire who will work on [the] engagement do not hold or represent any interest adverse to the Debtors or their estates, and Miller Buckfire is a 'disinterested person' as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code," Mr. Puntus assures the Court. About the Company Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware allowed DURA Automotive Systems, Inc. and its debtor affiliates to employ Kurtzman Carson Consultants, LLC, as their notice, claims and balloting agent. The Debtors have approximately 84,000 potential creditors. The office of the Clerk of the Bankruptcy Court for the District of Delaware is not equipped to efficiently and effectively serve notice on the large number of creditors and parties-in-interest and administer claims during the Debtors' Chapter 11 cases. "The sheer size and magnitude of the Debtors' creditor body makes it impracticable for the Clerk's Office to undertake that task," Keith Marchiando, chief financial officer, says. Kurtzman Carson is expected to: (a) prepare and serve required notices in the Debtors' Chapter 11 cases: * a notice of the commencement of the Reorganization Cases and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code; * a notice of the claims bar date; * notices of objections to claims; * notices of any hearings on a disclosure statement and confirmation of a plan or plans of reorganization; and * other miscellaneous notices as the Debtors or the Court may deem necessary or appropriate for an orderly administration of the Debtors' Chapter 11 cases; (b) within three business days after the service of a particular notice, prepare for filing with the Clerk's Office a certificate or affidavit of service that includes an alphabetical list of persons on whom the notice was served, along with their addresses, and the date and manner of service; (c) maintain copies of all proofs of claim and proofs of interest filed; (d) maintain official claims registers by docketing all proofs of claim and proofs of interest in a claims database that includes this information for each claim or interest asserted: * the name and address of the claimant or interest holder and any agent thereof, if the proof of claim or proof of interest was filed by an agent; * the date the proof of claim or proof of interest was received by Kurtzman and the Court; * the claim number assigned to the proof of claim or proof of interest; and * the asserted amount and classification of the claim; (e) implement necessary security measures to ensure the completeness and integrity of the claims registers; (f) transmit to the Clerk's Office a copy of the claims registers on a weekly basis unless requested more or less frequently by the Clerk's Office; (g) maintain an up-to-date mailing list for all entities that have filed proofs of claim or proofs of interest and make that list available upon request to the Clerk's Office or any party-in-interest; (h) provide access to the public for examination of copies of the proofs of claim or proofs of interest filed without charge during regular business hours; (i) record all transfers of claims pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure and, if directed by the Court, provide notice of those transfers as required by Bankruptcy Rule 3001(e); (j) comply with applicable federal, state, municipal, and local statutes, ordinances, rules, regulations, orders, and other requirements; (k) provide temporary employees to process claims as necessary; (l) promptly comply with further conditions and requirements as the Clerk's Office or the Court may at any time prescribe; (m) provide other claims processing, noticing, balloting, and related administrative services as may be requested from time to time by the Debtors; and (n) act as balloting agent, which may include some or all of these services: * printing of ballots, including the printing of creditor and shareholder specific ballots; * preparing voting reports by plan class, creditor, or shareholder and amount for review and approval by the client and its counsel; * coordinating the mailing of ballots, disclosure statement, and plan of reorganization to all voting and non-voting parties, and provide affidavit of service; * establishing a toll-free "800" number to receive questions regarding voting on the plan; and * receiving ballots at a post office box, inspecting ballots for conformity to voting procedures, date stamping and numbering ballots consecutively, and tabulating and certifying the results. In addition, at the Debtors' request, Kurtzman will assist the Debtors with, among other things: (1) preparing and mailing customized proofs of claim to the creditors listed on the Debtors' Schedules of Liabilities, (2) preparing, mailing, and tabulating ballots of certain creditors for the purpose of voting to accept or reject the plan or plans of reorganization; and (3) any other additional services requested by the Debtors. Kurtzman will bill: Professional Hourly Rate ------------ ----------- Clerical -- data input US$40 - US$65 Project Specialist -- document management and case administration US$75 - US$115 Consultant -- general consulting; document and data review US$125 - US$210 Senior Consultant -- general consulting; document and data review US$225 - US$250 Technology and Programming Consultant -- KCC Case View maintenance and support US$115 - US$195 The firm will send copies of its monthly invoices to the United States Trustee. With its appointment as notice, claims and balloting agent, Kurtzman: -- is not and will not be employed by any federal or state agency and will not seek any compensation from the Government; -- by accepting employment in the Debtors' cases, waives any right to receive compensation from the Government; -- is not an agent of the Government and is not acting on behalf of the Government; -- will not misrepresent any fact to the public; and -- will not employ any past or present employees of the Debtors for work involving the Chapter 11 cases. Eric Kurtzman, chief executive officer of Kurtzman Carson Consultants LLC, assures the Court that to the best of his knowledge, the officers and employees of his firm: (a) do not have any adverse connection with the Debtors, the Debtors' creditors or any other party-in-interest or their attorneys and accountants, the United States Trustee, or any person employed by the office of the U.S. Trustee; and (b) do not hold or represent an interest adverse to the Debtors' estates. Mr. Kurtzman attests that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). Prior to the Debtors' bankruptcy filing, Kurtzman performed certain professional services for the Debtors. The Debtors provided the firm with a US$100,000 advance payment retainer. Mr. Marchiando states the Debtors do not owe Kurtzman any amount for services performed or expenses incurred prior to the Petition Date. Kurtzman's original Retention Agreement provided for limitations of liability and indemnification. The Court, however, modified the Retention Agreement to remove that provision. A full-text copy of Kurtzman's Fee Structure is available for free at http://ResearchArchives.com/t/s?17d6 About the Company Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Wants to Pay US$1.1-Mln Prepetition Tax Claims --------------------------------------------------------------- DURA Automotive Systems, Inc. and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to pay, in their sole discretion, the undisputed prepetition claims of certain governmental units in respect to real and personal property taxes in an aggregate amount not to exceed US$1,100,000. The Debtors further request that all their banks and other financial institutions be authorized and directed, upon their request, to receive, process, honor and pay any and all checks drawn on their accounts to pay the Prepetition Property Tax Claims. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors own real and personal property in at least 12 U.S. states and Canadian provinces. Under applicable law, state, provincial, and local governments in the jurisdictions where the properties are located are granted the authority to levy taxes against the real and personal property. The Debtors typically pay taxes on their Owned Properties in the ordinary course as the taxes are invoiced, which typically covers taxes for the prior year, or quarter, depending on how the applicable tax is assessed. Thus, as of the bankruptcy filing date, the Debtors owed taxes that accrued with respect to the Owned Properties for some portions of the 2006 calendar year. Mr. DeFranceschi tells the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware, that while the Bankruptcy Code does not require the Debtors to pay the Property Taxes at this time, nonpayment or late payment of certain prepetition Property Taxes will, among others: (i) likely subject the Debtors to above-market interest rates and penalties in certain circumstances; (ii) cause Taxing Authorities' county or municipal to suffer a significant gross revenue cutback, in turn leading to reduced funding of public schools, fire and police departments, and other municipal services from which the Debtors and their employees enjoy the benefits; (iii) unnecessarily divert the Debtors' attention away from the operations of their businesses and the reorganization process in the event the Taxing Authorities would cause the Debtors to be audited; and (iv) result in the creation of statutory liens on the Owned Properties, which creation and perfection does not violate the automatic stay under Section 362 of the Bankruptcy Code. About the Company Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). FORD MOTOR: Strong Brazilian Ops Spurs Group to Invest US$1 Bln --------------------------------------------------------------- Ford Motor Co. will invest around US$1 billion into its Brazilian operations until 2011, BBC News reports. The investment will cover: -- product development plans, -- Sao Paulo site expansion, and -- acquisition of off-road vehicle firm Troller. The company, which commenced takeover talks with Troller in November, did not disclose the final acquisition price, BBC relays. Dominic Di Marco, Ford's top honcho in Canada and South America, said the company is confident in Brazil, BBC says. The company increased its market share in Brazil despite a sluggish sales performance in the U.S. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the Troubled Company Reporter-Europe on Dec. 13, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between US$17.5 billion and US$18.5 billion, up from US$15 billion. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. INCO LTD: Completes Merger with Itabira Canada ---------------------------------------------- CVRD Inco Limited fka Inco Limited completed the amalgamation of Inco Limited and Itabira Canada Inc., a wholly owned subsidiary of Companhia Vale do Rio Doce, to continue as "CVRD Inco Limited". As a result of the amalgamation, CVRD now owns 100% of the common shares of CVRD Inco. Under the amalgamation, which was effective on Jan. 4, 2007, holders of Inco Limited common shares (other than dissenting shareholders and affiliates of CVRD) received, for each such share held by them, one Class A redeemable preferred share of CVRD Inco. The Class A redeemable preferred shares were then redeemed for CDN$86 per share in cash, the same price paid under CVRD's successful take-over bid for Inco Limited in October 2006. Delisting Inco Limited's common shares were delisted from the Toronto Stock Exchange at the close of trading Friday, Jan. 5, and will no longer be traded on any stock exchange. CVRD Inco has applied to cease to be a reporting issuer under Canadian securities laws and has suspended its reporting obligations under United States securities laws. Former holders of Inco Limited common shares can obtain more information regarding how to obtain the cash payable to them in connection with the redemption of their shares in the meeting materials relating to the special meeting of shareholders held on Jan. 3, 2007. These meeting materials are available on the Inco Limited Web site at http://www.inco.com/ Former Inco Limited registered shareholders with any questions or requests for assistance in surrendering their certificates may contact Computershare Investor Services Inc. by telephone toll free in North America at 1-866-612-8058 or overseas at 1- 514-982-7555. Stockholders' Approval As previously reported in the Troubled Company Reporter, Inco Limited's shareholders overwhelmingly approved the amalgamation of Inco with Itabira Canada. About the Company Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- nka CVRD Inco Limited produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes ------------------------------------------------------------ Intelsat Subsidiary Holding Co. Ltd., an Intelsat Ltd. subsidiary, intends to redeem all of its outstanding US$1 billion Floating Rate Senior Notes due 2012. Intelsat Subsidiary has issued a notice of redemption pursuant to the indenture for the Notes stating that it intends to redeem all of the Notes on Feb. 2, 2007 at a redemption price equal to 101% of the principal amount of the Notes plus accrued and unpaid interest thereon to the Redemption Date. The redemption of the Notes is conditioned upon Intelsat Subsidiary Holding Company, Ltd. receiving sufficient funds on the Redemption Date from a term loan borrowing by its parent Intelsat (Bermuda), Ltd. The term loan borrowing is expected to be made pursuant to a new unsecured credit agreement that Intelsat (Bermuda), Ltd. intends to enter into to fund the Redemption Payment, which borrowing will be guaranteed by Intelsat Subsidiary Holding Company, Ltd. and the same subsidiaries of Intelsat Subsidiary Holding Company, Ltd. that guarantee the Notes. Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony, corporate network, video and Internet solutions around the globe via capacity on 25 geosynchronous satellites in prime orbital locations. Customers in approximately 200 countries rely on Intelsat's global satellite, teleport and fiber network for high-quality connections, global reach and reliability. * * * Fitch upgraded the Issuer Default Rating for Intelsat to 'B' from 'B-' pro forma for its pending acquisition of PanAmSat. The ratings were also removed from Rating Watch Negative, where they had originally been placed on Aug. 30, 2005. Fitch said the Rating Outlook is Stable. Moody's Investors Service affirmed the B2 corporate family rating of Intelsat, Ltd., and downgraded the corporate family rating of PanAmSat Corporation to B2, given the greater clarity regarding the final capital structure and the near-term completion of the PanAmSat acquisition by Intelsat. LAMBDA FINANCE: S&P Puts Low-B Ratings on Six Note Classes ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the GBP3.43-billion (Equivalent) secured floating-rate notes (Gracechurch Corporate Loans Series 2007-1) to be issued by Lambda Finance B.V., a special purpose entity. At the same time, Lambda Finance will issue GBP70 million of unrated class G notes. The transaction is a fully funded synthetic balance sheet CLO, referencing a GBP3.5-billion portfolio of bank loans granted by Barclays Bank PLC to U.K. SMEs, to which Barclays Bank will retain an exposure of more than GBP1.7 billion. The transaction aims to provide regulatory and economic capital relief to Barclays Bank. At closing, Barclays Bank will enter into a portfolio CDS with the issuer, under which the issuer will sell credit protection to Barclays Bank on the portfolio of bank loans to borrowers in the U.K. In turn, Lambda Finance will issue secured floating-rate notes in various currencies and invest the proceeds in a British pound sterling cash deposit account with Barclays Bank. The issuer will enter into several cross-currency swaps with Barclays Bank to exchange the non-sterling issuance proceeds into sterling. The proceeds will be exchanged back before redemption at an identical exchange rate. This is Barclays Bank's third CLO of SME loans. The structure resembles that of the previous transaction, Gracechurch Corporate Loans Series 2005-1, which was also issued out of Lambda Finance. Ratings List Lambda Finance B.V. GBP3.5-Billion (Equivalent) Secured Floating-Rate Notes (Gracechurch Corporate Loans Series 2007-1) Prelim. Prelim. Class rating amount (Mil.)(1) ----- ------ ------ A1 AAA GBP2,905 A2 AAA EURTBD A3 AAA US$TBD AB1 AAA GBP175 AB2 AAA EURTBD AB3 AAA US$TBD B1 AA+ GBP80.5 B2 AA+ EURTBD B3 AA+ US$TBD C1 A+ GBP94.5 C2 A+ EURTBD C3 A+ US$TBD D1 BBB+ GBP59.5 D2 BBB+ EURTBD D3 BBB+ US$TBD E1 BB+ GBP70 E2 BB+ EURTBD E3 BB+ US$TBD F1 B GBP45.5 F2 B EURTBD F3 B US$TBD G NR GBP70 (1) The exact splits between each class of notes into pounds sterling, euros, and U.S. dollars will be determined at closing. TBD-To be determined. NR-Not rated. LITTLE CHEF: Brings In PricewaterhouseCoopers as Administrator -------------------------------------------------------------- Little Chef enters administration last week after attempts to secure a buyer or refinance the business failed, BBC News reports. The roadside restaurant chain, which employs 4,000 workers, appointed PricewaterhouseCoopers to wind up the business. British private equity firm Rcapital and Israeli property firm Arazim Investments bought 196 of Little Chef's 235 restaurants for less than GBP10 million, BBC relays. According to PwC joint administrator Ian Green, while it was disappointing that efforts to save the group failed, he was nonetheless "delighted" recent negotiations would see almost 200 Little Chef restaurants continue trading, BBC adds. About Little Chef Headquartered in Sheffield, England, Little Chef is a chain of roadside restaurants in the United Kingdom, founded in 1958 and owned since Oct. 20, 2005 by The People's Restaurant Group Ltd., a company belonging to British catering entrepreneurs Simon Heath and Lawrence Wosskow. REFCO INC: Court Allows Ch. 11 Trustee to Modify Claims vs. RCM --------------------------------------------------------------- U.S. Southern District of New York Judge Robert D. Drain authorizes Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital Markets, Ltd., to establish and modify, from time to time, the RCM claims reserve in an amount sufficient to reserve adequate assets to satisfy the Allowed Claims against RCM. In addition, Judge Drain: (a) allows, disallows and expunges, and classifies certain claims, as requested; (b) directs the RCM Trustee to effectuate netting and cross- margining arrangements on the proposed terms and conditions; (c) estimates at zero certain claims that are inconsistent, filed late, duplicative, and are subject to prior books and records objections; (d) directs the RCM Trustee to establish and fund the Disputed Claims Reserve; and (e) authorizes the RCM Trustee to make distributions to claims on certain terms and conditions as provided in the Distribution Motion. RCM Pre-Hearing Claims Resolution Process At the Dec. 21, 2006, hearing on the RCM Trustee's request, Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York, informed the Court that the RCM Trustee and his advisors at AlixPartners LLP and Bingham have worked round the clock for the past three months to return to RCM creditors the maximum amount of money in the shortest possible time. Hundreds of claims have been discussed and reviewed with creditors individually, and many of those discussions have led to agreed claims resolutions. In response to the Distribution Motion, 73 objections covering 187 claims were filed. The objecting parties include: * Commonwealth Bank of Australia, * Russia Growth Fund, Ltd., * Acies Asset Management, * North Hills LP, * Inversiones Financieras Del Sur S.A., * Aracamba Israel Ltd., * Invercapital International Ltd., * Hain Capital Holdings, LLC, * Bradley C. Reifler, * Contrarian Capital Management, LLC, * Geshoa Structured Finance, Ltd., * Corporex Investments, LLC, * Rovida Holdings Limited, * RR Investment Company, * Tone N. Grant, * James B. Rogers, Jr., * Living Water Fund, L.P., * Bear Stearns Investment Products Inc., and * PricewaterhouseCoopers, E.C., Inc. Mr. DeSieno said the Objections have been sufficiently narrowed and resolved to enable the proposed initial distribution. According to him: (a) creditors have agreed with the RCM Trustee's views of their claims; (b) creditors and the RCM Trustee have agreed on a portion of asserted claims, so distribution may be made, with the difference between the agreed portion and the asserted claim benefiting from a reserve; (c) creditors have agreed that the Distribution Motion may proceed without the need for any reserve for their claim at this time; (d) creditors did not object to the RCM Trustee's proposed treatment of their claims, and they have, thereby, effectively agreed to it; or (e) a creditor's claim is asserted not against RCM, but against another Debtor entity. The RCM Trustee filed on Dec. 20, 2006, a revised exhibit of the Claims subject to the Distribution Motion. The revised exhibit reflects agreements reached with some of the Claimants. In many cases, the RCM Trustee has settled with a claimant as to the classification and treatment of its claim. Mr. DeSieno also noted that the RCM Trustee received no objection to the proposed treatment of a Partially Allowed RCM Securities Customer Claim or Partially Allowed RCM FX/Unsecured Claim. RCM Trustee Addresses Objections According to Mr. DeSieno, the Objections raised identical issues. At the hearing, the RCM Trustee presented a consolidated reply to the objecting parties' concerns: A. Creditors want to pursue claims in amounts higher than the RCM Trustee has agreed. Mr. DeSieno told the Court that it has always been the RCM Trustee's intention to preserve a creditor's right, even if the Court grants the Distribution Motion, to assert a higher claim amount than the RCM Trustee has agreed to. The reserve provided for partially allowed RCM Securities Customer Claims and RCM FX/Unsecured Claims is in the amount of the claim, including the disputed portion. B. Objections challenging the 75% allowance and distribution scheme applicable to the Partially Allowed RCM Securities Customer Claims and Partially Allowed RCM FX/Unsecured Claims. Mr. DeSieno asserted the proposed treatment is far better than the normal treatment of disputed claims, which generally receive no distribution until the entire claim is finally resolved. He explained that it is the RCM Trustee's business judgment as to those claims that material valuation differences may exist which could lead to a downward adjustment of the Resulting Securities Customer Claim, considering that most cases involved illiquid securities. C. Objections challenging the allowance and distribution scheme applicable to certain claims that contain insufficient documentation or are inconsistent with the Debtors' books and records. Mr. DeSieno informed the Court that only the dispute concerning claims filed by Mr. Rogers and Living Water Fund remain unresolved. Mr. Rogers asserted contingent and unliquidated contribution or indemnity claims against RCM and the other Debtors' estates. Mr. Rogers' Claims arose out of transactions between Rogers Raw Materials Fund, L.P., and Rogers International Raw Materials, Fund, L.P., on one hand, and Refco, LLC, and RCM, on the other. In October 2005, the Rogers Funds commenced an adversary proceeding against RCM. The Rogers Funds also filed a claim against Refco LLC, which was not named in the action. The Action was later resolved in accordance with the RCM Settlement Agreement. Moreover, following a four-day trial of the Rogers Funds' claims against the Refco, LLC estate, Rogers Funds and Beeland Capital Management, L.L.C., settled and withdrew their claims against Refco LLC. Beeland and its two officers also withdrew their Claims against RCM. As a result of the settlement, Mr. DeSieno pointed out that the Rogers Funds already possess the allowed US$30,000,000 claim against Refco LLC and allowed claims aggregating US$373,000,000 against RCM. Mr. DeSieno noted that the Rogers Funds stand to receive a recovery in excess of 90%, plus a beneficial interest in the Litigation Trusts, which could substantially augment that recovery. Mr. DeSieno argued that the Rogers Claim should be disallowed in its entirety because permitting a recovery on the Rogers Claim would effect an impermissible double recovery. Additionally, Living Water Fund filed a proof a claim asserting that it had: (i) a US$227,670 unsecured non-priority claim based on its account balance at RCM as of the Petition Date; and (ii) a US$1,226,000 postpetition administrative claim based on RCM's alleged unlawful postpetition termination of Living Water Fund's Euro option contracts. The RCM Trustee acknowledges that Living Water Fund has a valid US$200,000 prepetition claim, and has offered to reserve a portion of the remainder of that claim. As of Dec. 20, 2006, Living Water has declined to accept the RCM Trustee's reserve offer, Mr. DeSieno said. The RCM Trustee maintained that the Court should expunge and disallow Living Water Fund's claim. Establishment & Modification of RCM Reserve "The RCM Trustee is authorized to, from time to time, modify the RCM Reserve in an amount sufficient, in his reasonable business judgment, in consultation with Alix Partners and his other advisors, to reserve adequate assets to satisfy Allowed Claims against RCM. The RCM Trustee shall file a notice with the Court notifying the Court of any such modification to the RCM Reserve," Judge Drain says. With respect to Related Claims aggregating US$2,679,458,644, Judge Drain rules that each of the Claims constitutes, and will be reclassified as, a Class 8 Related Claim under the Plan. However, allowance of each claim will be deferred at this time, and no cash contribution will be made to the RCM Disputed Claims Reserve on account of the claim. With respect to the FXA Claims aggregating US$4,342,439 asserted against RCM, Judge Drain rules that allowance of each claim will be deferred at this time, and no cash contribution will be made to the RCM Disputed Claims Reserve on account of that claim. Judge Drain estimates Claim Nos. 10479 and 10491 filed by Mr. Grant against RCM at US$0 for allowance, reserve and distribution purposes. The RCM Trustee will not be required to reserve for any distributions on account of the Grant Claims. Judge Drain also estimates the Rogers Claim at US$0. The RCM Trustee will not be required to reserve for any distributions on account of the Rogers Claim. Claim Nos. 10891 and 10892 filed by Leuthold Funds, Inc., and Leuthold Industrial Metal Funds, L.P., against RCM will be treated in accordance with a stipulation and agreed order between the RCM Trustee and Leuthold. To effect the Stipulation, Judge Drain authorizes HSBC Bank, U.S.A. London Branch, and its affiliates to follow the joint written instructions of the RCM Trustee, Leuthold and Leuthold Industrial, and to turn over to Leuthold the 1,074,060 ounces of silver and 16,493 ounces of palladium held by HSBC in respect of certain Leuthold accounts. In the event that RCM's Chapter 11 case is at any time converted to a liquidating case under Chapter 7, all the terms, conditions and other provisions approved by the Order will, in all events, be final, valid, binding and enforceable upon any trustee appointed in a Chapter 7 case, the holders of claims against RCM, and all other parties-in-interest regardless of a conversion. The RCM Trustee will not be required to make any Distribution in respect of a Claim unless and until he is reasonably satisfied that he possesses all appropriate payee information in respect of that Claim. Avoidance Actions & Cross-Margin Claims The RCM Trustee, and any of his successor-in-interest, will retain all rights with respect to potential preference and avoidance actions under Chapter 5 of the Bankruptcy Code against any claimant. Moreover, the RCM Trustee will retain all rights with respect to any other claims that RCM may have related to cross-margin relationships discovered at a later date. The Order will not constitute a waiver of the RCM Trustee's rights to pursue Avoidance Actions and Additional Cross Margin Claims, or to withhold amounts owed in respect of those claims from any distributions in respect of allowed claim amounts. 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 Until June 12 to File Reorganization Plan --------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive period to: (a) propose and file a plan of reorganization to and including June 12, 2007; and (b) solicit acceptances of that plan to and including Aug. 11, 2007. Based on Section 1121(b) of the Bankruptcy Code provides a debtor the exclusive right to file a plan of reorganization for an initial period of 120 days after the commencement of its Chapter 11 case. Section 1121(c)(3) of the Bankruptcy Code provides that if a debtor files a plan of reorganization within the 120-day initial period, a debtor has 180 days after the commencement of the Chapter 11 case within which to solicit and obtain acceptances of its plan, during which time competing plans may not be filed by any party-in-interest. Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that since the Petition Date, the Debtors have concentrated on stabilizing their business operations, managing a smooth transition to operating under Chapter 11 protection, and continuing to develop and implement their restructuring plan which will form the basis of a confirmable plan of reorganization. Specifically, the Debtors have: (1) filed several "first day" motions, which have been approved by the Court on an interim or final basis; (2) sought and obtained interim Court approval to make statutory payments to dismissed employees, which relief has minimized the disruption to their business operations associated with the commencement of the Chapter 11 cases; (3) filed a petition with the Bermuda Supreme Court to wind up Sea Containers Ltd., and sought the appointment of point provisional liquidators with limited powers, which appointment provides SCL with the additional protection statutory moratorium that ensures that no creditor or other party with standing could take action against SCL or its assets in Bermuda; (4) prepared and filed retention applications for various professionals to assist in their reorganization efforts. Among other professionals, the Court has approved the retention of Sidley Austin LLP, PricewaterhouseCoopers LLP, Collinson Grant Ltd., Towers Perrin, and Carter Ledyard & Milburn LLP; (5) filed an application to employ ordinary course professionals and a request to establish compensation procedures for professionals, which request was Court- approved on Nov. 8, 2006; (6) devoted considerable time and resources addressing various business issues related to GE SeaCo SRL, as well as responding to the request of GE Capital Container SRL and GE Capital Container Two SRL for relief from the automatic stay to proceed with arbitration; and (7) continue to identify and implement significant business measures, including valuing and marketing various businesses and other assets for sale to maximize the value of the businesses and assets located across the group and the potential return to the Debtors' creditor constituencies. Mr. Brady tells the Court that the Debtors' sufficiently large and complex cases warrant an extension of their Exclusive Periods. As of June 30, 2006, SCL, on a consolidated basis with all its subsidiaries, had total assets having a net book value of US$1,673,000,000, including assets of its former subsidiary Silja Oy Ab which has since been sold. According to Mr. Brady, the Company's capital structure adds additional complexity because many of the Non-Debtor Subsidiaries have historically relied on SCL to provide financing for their various operational needs, including funding for the payment of Non-Debtor Subsidiaries' creditors, funding required to preserve the value of assets held by Non-Debtor Subsidiaries, and funding to maintain the business operations of the Non-Debtor Subsidiaries. The Debtors' Chapter 11 Cases have the additional complexity of dealing with foreign creditors, vendors and legal issues in a multitude of foreign jurisdictions, including the coordination with the JPLs and the proceedings in Bermuda, Mr. Brady adds. Mr. Brady assures the Court that the extension will not harm the Debtors' creditors or other parties-in-interest and will be used for a proper purpose that is to develop a feasible plan of reorganization, which is in the best interests of all of the Debtors' constituencies. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Wants Until May 13 to Decide on Leases ------------------------------------------------------ Sea Containers Ltd. and its debtor-affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend the original 120-day period to assume or reject real property leases through and including May 13, 2007, in pursuant to Section 365 (d)(4) of the Bankruptcy Code. According to Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, the Real Property Leases include: (1) lease of the 5th, 11th, 12th, 13th and 14th floors of Sea Containers House, 20 Upper Ground, in London SEl, United Kingdom, between Archlane Limited and Sea Containers Services Ltd., dated March 25, 1988, and expiring Dec. 24, 2011; (2) lease of the second basement, first basement, ground 12th and 13th floors of Sea Containers House, 20 Upper Ground London SEl between Archlane Limited and Sea Containers Services dated March 25, 1988, and expiring Dec. 24, 2011; and (3) lease of Arches 1-12 and 15 and 16 beneath Southwark Bridge, Southern Approach, Park Street, London SE 1, between The Mayor and Commonalty and Citizens of the City of London as Trustees of the Bridge House Estates and Sea Containers Services commencing Aug. 20, 2003, and expiring Dec. 25, 2011. The office spaces at Sea Containers House serve as Sea Containers Services' headquarters and of the direct and indirect U.K. subsidiaries of Sea Containers Ltd. Mr. Brady discloses that Sea Containers Services conducts substantially all of its business activities from the Premises. For the benefit of SCL, itself, and certain of the Non-Debtor Subsidiaries, Sea Containers Services' employees at the Premises, among other things: * manage financial and accounting services; * operate information technology systems; * provide administrative services; and * manage payroll and other human resource services. In addition, certain of the U.K. Subsidiaries and affiliated entities of the Debtors sublease office space at the Premises from Sea Containers Services. Mr. Brady informs Judge Carey that Sea Containers Services is not prepared to: (i) assume the Premises Leases and obligate the estate for the remaining five year terms under the Premises Leases; or (ii) reject the Leases before the expiration of the 120 days set forth in Section 365(d)(4) because Sea Containers Services' and the U.K. Subsidiaries' operations would be required to immediately relocate. Mr. Brady says an extension is warranted because: (a) Sea Containers Services is current on its obligations under the Premises Leases and intends to continue to fulfill their obligations under the Leases on a timely basis, unless the Leases are rejected; (b) as the headquarters of Sea Containers Services and the U.K. Subsidiaries, the Premises serve an important role in preserving the continuity of the Debtors' ongoing operations; (c) the Debtors' Chapter 11 Cases are large and complex, and it is important that they be afforded a reasonable opportunity to address the myriad of issues implicated by the ongoing restructuring efforts before they are forced to make a long term decision concerning the Premises; and (d) the Debtors and its creditor constituencies have not had sufficient time to formulate a plan of reorganization, which formulation will require the participation of multiple constituencies including several with rights which may emanate from foreign law. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Taps Towers Perrin as Compensation Consultants -------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the District of Delaware to employ Towers, Perrin, & Crosby, Inc., as their compensation consultants, nunc pro tunc to Oct. 15, 2006. According to Robert D. MacKenzie, president and chief executive officer of Sea Containers, Ltd., the Debtors selected Towers Perrin based on its experience in providing advice and analysis with respect to a wide range of employment and compensation related issues. Towers Perrin is familiar with the Debtors' compensation and incentive program. Mr. MacKenzie adds, since the Petition Date, Towers Perrin's professional have worked closely with the Debtors' senior management, financial staff, and other professionals and have become well-acquainted with their compensation and incentive programs. Specifically, Towers Perrin will: (a) work with management to gather and review information, including, current job descriptions, organizational charts, compensation program information, and incumbent data for these positions: -- President; -- Chief Financial Officer and Senior Vice President; -- Chief Restructuring Officer; -- Group Operations Controller; -- Financial Controller; -- Head of Taxation; -- VP Funding; -- Commercial Director Ferries; -- U.S. Reporting Manager; -- Group Financial Planning and Analytical Manager; -- Manager, Financial Services; -- Group Chief Accountant; -- Group Consolidation Manager and AP Manager; -- Management Accountant - Ferries; -- Payroll Manager; -- Treasury Manager; -- Human Resources Manager; -- Business Analyst; -- Container Division; (b) work with management to identify a reasonable group of peer companies for pay purposes, bearing in mind the type of company from which and to which the key executives may be hired from or lost to, in recognition of their transferable skills; (c) perform an independent market analysis of compensation levels at peer companies. To gather market pay levels, Towers Perrin will utilize: * the Debtors' U.K. Top Executive General Industry Survey 2006 for senior executives; and * Towers Perrin's U.K. General Industry Compensation Database 2006 for other key executives; (d) independently recommend reasonable incentive payout amounts for the specified executives and employee groupings, subject to performance outcomes set by reference to expected performance ranges delivered to us by the Debtors, which arrangements will be discussed with and approved by the Official Committee of Unsecured Creditors; (e) create a summary report combining all of the work and setting forth the Debtors' findings, conclusions and recommendations; and (f) provide, at the Debtors' behest, truthful and independent expert witness testimony regarding the Debtors' market analysis and assessment of any resulting incentive plan payouts in light of the competitive analysis. Towers Perrin will be paid for its services based on the firm's current hourly rates: Principals GBP500 Senior Consultants GBP350 Consultants GBP250 Associates/Senior Associates GBP200 The firm will also be reimbursed for necessary and reasonable out-of-pocket expenses incurred in providing professional services. Damian Carnell, a consultant at Towers Perrin, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Towers Perrin 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. Carnell says. 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) SMARTIRE SYSTEMS: Oct. 31 Equity Deficit is US$34.8 Million ----------------------------------------------------------- SmarTire Systems Inc. reported a US$5.3 million net loss on US$851,779 of revenues for the first quarter ended Oct. 31, 2006, compared with an US$18.2 million net loss on US$592,866 of revenues for the same period in 2005. The decrease in net loss is mainly due to the US$15.7 million decrease in interest and financing expense. Interest and finance charges for the three months ended Oct. 31, 2006, includes non- cash interest of US$1.9 million compared to non-cash interest charges of US$16.7 million for the three months ended Oct. 31, 2005. Of the US$16.7 million non-cash interest charges, US$16.3 million were for amortization of deferred financing fees. The company's balance sheet at Oct. 31, 2006, showed US$6.1 million in total assets, US$38.7 million in total liabilities, and 2.2 million in preferred shares subject to mandatory redemption, resulting in a stockholders' deficit of US$34.8 million. At Oct. 31, 2006, the company's balance sheet also showed strained liquidity with US$3.6 million in total current assets available to pay US$4.7 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Oct. 31, 2006, are available for free at http://researcharchives.com/t/s?1810 About SmarTire Headquartered in Richmond, British Columbia, Canada, SmarTire Systems Inc. (OTC BB: SMTR.OB) -- http://smartire.com/-- develops and markets technically advanced tire pressure monitoring systems for the transportation and automotive industries that monitor tire pressure and tire temperature. Its TPMSs are designed for improved vehicle safety, performance, reliability and fuel efficiency. The company has three wholly owned subsidiaries: SmarTire Technologies Inc., SmarTire USA Inc. and SmarTire Europe Limited. SOLUTIA INC: Can Sell Property to Shintech for US$7.1 Million ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York Court has authorized Solutia Inc. to sell its approximately 482 acres of undeveloped flat land in the Chocolate Bayou Property to Shintech Incorporated for US$7,109,500. Judge Beatty approves the CB Land Purchase Agreement and all other ancillary documents. J.V. Industrial Companies Ltd. asserted a secured Claim No. 319 predicated on a perfected statutory mechanic's and materialmen's lien against Solutia. J.V. informally objected to the motion arguing that the J.V. Claim would not be adequately protected following the closing of the proposed sale. Solutia and J.V. entered into a court-approved stipulation to resolve the objection and to allow the J.V. Claim as a secured claim in the Debtors' Chapter 11 cases. Fluor Corporation has also asserted Claim No. 4593 against Solutia, secured by a valid perfected mechanic's and materialmen's lien on the Chocolate Bayou property, including the sale property. The Fluor Claim was subsequently transferred to Longacre Master Fund, Ltd. on June 5, 2006. The Court approves the stipulation entered into by Solutia and Longacre and authorizes Solutia to pay to Longacre all amounts due on account of the Fluor Claim from the proceeds of the sale. Longacre will retain the Fluor Lien on the remainder of the Chocolate Bayou property. The Sale proceeds will be deposited into a segregated interest-bearing account maintained by Solutia, and will only be released pursuant to the terms of the Longacre stipulation. Solutia will not deposit any additional funds into the Segregated Account, or use the funds in the Account for any other unauthorized purpose. Stipulation with J.V. The J.V. Claim asserts a secured claim against Solutia and arose from labor and materials furnished, and improvements and repairs to Solutia's Chocolate Bayou Facility in Alvin, Texas. J.V. informally objected to the motion as it did not adequately protect the interest of J.V., as required by Section 363 of the Bankruptcy Code. Upon review of its books and records, Solutia has determined that the amounts asserted by J.V. in its Claim are accurate for the goods and services provided. The J.V. Lien has also been determined to be valid and perfected, and fully secures payment of the Claim. The stipulation between Solutia and J.V. states that: * J.V. consents to the relief sought in the Motion and agrees to refrain from taking further action with regard to the sale of the Property; * the J.V. Claim is allowed as a fully secured claim against Solutia in the amount of US$467,693, plus applicable interest; and * if an alternate plan of reorganization is proposed by Solutia or any other party is confirmed, the Claim will receive the same treatment as all other fully secured claims or allowed fully secured mechanic's lien claims, if classified separately. The Claim will be paid in full on the earlier of the effective date of the confirmed Chapter 11 plan; other date that unpaid allowed fully secured claims in the case are paid; a date agreed on by the parties; or as directed by the Bankruptcy Court. Stipulation with Longacre Before the Petition Date, Solutia entered into a contract with Fluor for the construction of an accylonitrile plant located at Solutia's Chocolate Bayou plant in Alvin, Brazoria County, Texas. Certain disputes arose; Fluor sued Solutia before the U.S. District Court for the Southern District of Texas regarding the Fluor Contract and the work on the AN-7 plant. Solutia and Fluor subsequently decided on a consensual resolution and Solutia agreed to pay US$20,000,000 to Fluor. Solutia paid the first US$10,000,000 of the settlement amount. The remainder was to be paid in semi-annual installments of US$1,666,667. The obligation to pay was secured by a mechanic's and materialmen's lien on the AN-7 Plant and the Chocolate Bayou Property. The Lien is deemed to be perfected as of Nov. 8, 2000. Solutia made the first two installment payments. Fluor filed a secured Claim No. 4593 for the aggregate amount of the remaining Installment Payments in the amount of US$6,731,277, plus accruing interests and other costs and expenses against Solutia in its Chapter 11 cases. The Claim was transferred to Longacre on June 5, 2006. To obtain Longacre's consent to the Property Sale, Solutia and Longacre stipulate and agree that: * Longacre will not object to the approval of the motion or the Sale, however, Longacre will retain its Lien on the AN-7 Plant and the Chocolate Bayou Property other than the Sale Property; * the Fluor Claim will be deemed to be an allowed secured claim and will not be subject to any objection, offset, defense, or counterclaims, and no party may contest Longacre's right to the allowed Fluor Claim and the payment; * Longacre's Lien will attach to the Sale Proceeds held in the Segregated Account; * Solutia will obtain the consent of the debtors-in- possession lenders to pay the Allowed Fluor Claim in full in conjunction with the anticipated amendment of the DIP agreement in January 2007; * the Sale Proceeds will remain in the Segregated Account until released solely in accordance with the stipulation; pursuant to a written agreement between Solutia and Longacre; or pursuant to Court order; * upon full satisfaction of the Allowed Fluor Claim, the balance of the Segregated Account will be released to Solutia; * if payment is not made during the pendency of Solutia's Chapter 11 cases, Solutia will, on the effective date of a plan, assign, transfer, deliver, and pay over to Longacre, by wire transfer of immediately available funds to an account specified by Longacre, the balance of the Segregated Account; and * to the extent the effective date account transfer does not satisfy the Allowed Fluor Claim in full, Longacre will be paid in full in cash on account of the remaining amount due on the Allowed Fluor Claim on effective date, or soon as practicable of any plan of reorganization in the Solutia's Chapter 11 cases. 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) WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1 -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to the proposed US$1.2 billion senior secured term loan facility of Weight Watchers International, Inc. and affirmed existing credit ratings. The rating outlook remains stable. The proceeds from the $1.2 billion credit facility are expected to be used to fund share purchases, refinance the indebtedness of its subsidiary, WeightWatchers.com, and pay related fees and expenses. The existing $850 million credit facility is expected to remain outstanding at closing. On Dec. 18, 2006, Weight Watchers reported that it commenced a self-tender offer for up to 8.3 million shares of its common stock and also entered into an agreement with Artal Holdings Sp. z o.o., its majority shareholder. The agreement with Artal provides that Weight Watchers will purchase from Artal shares of its common stock so that Artal's percentage ownership in Weight Watchers after the tender offer will be substantially equal to its current level of approximately 55.2%. Prior to its recent report, Weight Watchers' credit metrics were strong for the Ba1 rating category, but reflected uncertainty related to the firm's target capital structure and expected financial policies. Although the reported transaction will result in pro forma leverage and cash flow metrics that are weak for the rating category, these metrics are expected to improve in 2007. Moody's expects profitability in 2007 to benefit from new business initiatives and expects the company to utilize internal cash generation to repay a portion of the transaction indebtedness. The Ba1 corporate family rating continues to reflect high levels of pretax income, impressive profit margins and solid geographic diversification. The ratings are constrained by reliance on a single brand and potential threats from new competitors and products. Moody's took these rating actions for Weight Watchers: -- Assigned $700 million add-on senior secured term loan A facility due 2013, Ba1, LGD3, 34%; -- Assigned $500 million add-on senior secured term loan B facility due 2014, Ba1, LGD3, 34%; -- Affirmed $500 million senior secured revolving credit facility due 2011, Ba1, LGD3, 34%; -- Affirmed $350 million senior secured term loan A facility due 2011, rated Ba1, to LGD3, 34%; -- Affirmed Corporate Family Rating, Ba1; and, -- Affirmed Probability of Default Rating, Ba2. Moody's affirmed the credit ratings of WeightWatchers.com and will withdraw such ratings upon the repayment of its rated debt with the proceeds from the add-on term loan facilities. The stable ratings outlook anticipates solid revenue and profitability growth in 2007 driven by recent franchise acquisitions, implementation of price increases in portions of North America and Europe, new marketing campaigns and wider roll-out of new monthly and seasonal membership plans. Free cash flow generation is expected to be primarily utilized for debt repayment. The company's willingness to substantially increase leverage in connection with its pending share purchase is inconsistent with an investment grade rating profile. Consequently, the ratings are unlikely to be upgraded in the intermediate term. However, over the long term, an upgrade is possible if the company: -- grows profitability or repays indebtedness such that EBIT coverage of interest and free cash flow to debt are sustained for a few years at over 4.5x and 12%, respectively; and, -- demonstrates a commitment to conservative financial policies. The ratings could be pressured by another large share repurchase in the near term or a failure to achieve anticipated improvements in credit metrics during the next year. Credit metrics could remain weak within the rating category if attendance levels or operating margins decline and term loan repayments are materially below Moody's expectations. A downgrade is possible if EBIT coverage of interest and free cash flow to debt are expected to be sustained at less than 2.5x and 8%, respectively. Headquartered in New York, New York, Weight Watchers is a leading global provider of weight management services, operating globally through a network of company owned and franchised operations. Revenues for the twelve months ended Sept. 30, 2006, were $1.2 billion. WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating for New York, N.Y.-based commercial weight-loss service provider Weight Watchers International Inc. At the same time, all WWI ratings were removed from CreditWatch, where they were placed with negative implications on Dec. 20, 2006, reflecting WWI's increasingly aggressive financial policy following the company's announcement that it plans to launch a "modified Dutch auction" self-tender offer for up to 8.3 million shares of its common stock at a price range between US$47 and US$54 per share. At the same time, Standard & Poor's assigned its 'BB' rating to the company's proposed US$700-million term loan A-1 and US$500-million term loan B, with a recovery rating of '2', indicating the expectation for substantial (80%-100%) recovery of principal in the event of a payment default. S&P also lowered the existing bank loan ratings on WWI's US$350-million term loan A and US$500-million revolving credit facility to 'BB' from 'BB+' and the recovery rating on these facilities to '2' from '1'. The rating outlook is negative. Proceeds from the new US$1.2 billion of term loans will be used to finance the tender offer and to repay outstanding debt at wholly owned subsidiary WeightWatchers.com (WW.com, B+/Positive/--). Artal Luxembourg S.A., WWI's majority shareholder, plans to retain its 55.2% pro rata share of common stock outstanding following the completion of the Dutch auction repurchase. WWI intends to repay the outstanding balance of WW.com's senior secured credit facilities, which consist of a US$170-million first-lien term loan and a US$45-million second-lien term loan. S&P expect all ratings on WW.com to be withdrawn upon the completion of the planned refinancing of its existing senior secured debt. * Huron Consulting Group Agrees to Acquire Glass & Associates ------------------------------------------------------------- Huron Consulting Group Inc. entered into a definitive agreement to acquire Glass & Associates Inc. Under the terms of the purchase agreement, Huron will acquire Glass & Associates for a purchase price at closing of approximately US$30 million in cash. Additional purchase consideration will be payable in cash to shareholders of Glass if specific performance targets are met. The acquisition is subject to various closing conditions and closing is expected to occur next week. Glass had unaudited 2006 calendar year revenues of approximately US$24 million. Huron expects that the acquisition will be accretive to 2007 earnings and will provide guidance updates when it releases results for the fourth quarter and full year 2006. "Since Huron opened its doors in 2002, turnaround and restructuring services have been part of our balanced portfolio of service offerings and our financial success. The addition of the world class executives and their team at Glass provides additional avenues for growth for our Corporate Advisory Services practice," said Gary E. Holdren, chairman and chief executive officer of Huron Consulting Group. "By joining forces with Huron, we will be able to provide our clients with services that extend far beyond our current core competencies in restructuring and turnarounds," said John DiDonato, president, Glass & Associates, Inc. With the acquisition of Glass, Huron continues to expand its position in the consulting and restructuring marketplace. Huron expects the auto, healthcare, industrial manufacturing, and retail industries to continue to face credit challenges which will drive demand for services in the upcoming years. In joining Huron, DiDonato will lead Huron's Corporate Advisory Services practice and will be based in New York. In addition, Dalton T. Edgecomb, Sanford R. Edlein, and Shaun Martin will join the Company as managing directors. Credit Amendment In connection with this acquisition and the acquisition of Wellspring Partners LTD, Huron has amended its credit agreement so that the maximum amount of principal that may be borrowed under the unsecured revolving credit facility is increased from US$75 million to US$130 million. No other key terms of the credit agreement, which was originally entered into on June 7, 2006, and expires on May 31, 2011, were modified under the amendment, and the balance of the credit facility will remain available for future working capital requirements and other corporate purposes. About Glass & Associates Headquartered in New York -- http://www.glass-consulting.com-- Glass & Associates Inc. provides advice and leadership to troubled businesses in the United States and Europe. The firm's executives work closely with management to create and implement strategies that secure the future of the distressed company. Glass identifies underlying operational issues -- not just financial problems -- to maximize the organization's value to shareholders, creditors and employees. Glass will bring a team of approximately 35 revenue-generating professionals and a complement of independent contractors. About Huron Consulting Group Headquartered in Chicago, Illinois -- http://www.huronconsultinggroup.com/-- helps clients effectively address complex challenges that arise in litigation, disputes, investigations, regulatory compliance, procurement, financial distress, and other sources of significant conflict or change. The Company also helps clients deliver superior customer and capital market performance through integrated strategic, operational, and organizational change. Huron provides services to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations, and the law firms that represent these various organizations. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 293 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (98) 222 (72) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Dollfus Mieg & Cie S.A. DS (16) 143 (45) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (10) 120 (5) Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Oeneo S.A. SABT.PA (12) 292 38 Pneumatiques Kleber S.A. (34) 480 139 Rhodia S.A. RHA (788) 6,681 171 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Selcodis S.A. SPVX (18) 128 22 Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (174) 3,003 606 Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (3) 207 (30) Nordsee AG (8) 195 (31) Plambeck Neue Energien AG PNE3 (4) 141 19 Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (23) 144 (7) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (55) 131 (31) GREECE ------ Empedos S.A. EMPED (34) 175 (48) Pouliadis Associates Corporation POUL (28) 124 (31) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- Exbus Asset Management Nyrt. EXBUS (30) 118 (5,162) ICELAND ------- Decode Genetics Inc. DCGN (9) 229 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (150) 4,218 N.A. I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (58) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) Wind Telecomunicazioni S.p.A. (10) 12,698 (815) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) Vista Alegre Atlantis SGPS S.A. VAAAE (18) 193 (83) ROMANIA ------- Oltchim RM Valce OLT (45) 232 (321) RUSSIA ------ OAO Samaraneftegas (332) 892 (16,942) Zil Auto (185) 378 (11,107) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (10) 134 (37) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dnepropetrovsk Metallurgical Plant Imeni Petrovsko (2) 278 (509) Dniprooblenergo (38) 478 (797) Donetskoblenergo (166) 706 (1,320) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker Plc ANK.L (22) 115 13 Atkins (WS) Plc ATK (63) 1,279 70 Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Compass Group CPG (668) 2,972 (298) Costain Group COST (39) 567 (5) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,264) 2,818 (253) Euromoney Institutional Investor Plc ERM.L (88) 297 (56) European Home Retail Plc EHRL (14) 111 (37) Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (4) 948 (175) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (835) 8,881 (49) Invensys PLC (1,031) 3,875 494 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (683) 492 (371) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (14) 115 (11) Mytravel Group MT.L (283) 1,159 (410) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Farner Plc PFL (33) 964 127 Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,134) 2,678 (45) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (490) 155 (80) Wincanton Plc WIN (66) 1,236 (71) ********* Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, and Kristina A. Godinez, 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 * * *