/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070110.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 Wednesday, January 10, 2007, Vol. 8, No. 7 Headlines A U S T R I A ALTHEIM NELL: Creditors' Meeting Slated for January 15 BIOGAS LLC: Claims Registration Period Ends January 16 DSI LLC: Creditors' Meeting Slated for January 18 GRUBER SANIERUNG: Property Manager Declares Insufficient Assets HOSPOGA LLC: Klagenfurt Court Orders Business Closure MEBRI FITNESSCENTER: Wels Court Orders Business Shutdown SCHMIDT LLC: Property Manager Declares Insufficient Assets TIERTRANSPORT LLC: Court Orders Business Shutdown B E L A R U S * European Commission Probes into Russia-Belarus Gas Dispute * Fitch Says Russian Oil Supply to Central Europe Less Reliable C Z E C H R E P U B L I C STROJPLAST TACHOV: Stops Production; Alfa Plastik Takes Over F R A N C E ALCATEL-LUCENT: To Test OLF's WiMAX Pilot in the North Sea G E R M A N Y ADVANCED MEDICAL: Acquires IntraLase Corp for US$808 Million ADVANCED MEDICAL: S&P Places BB- Rating on CreditWatch Negative AUTOHAUS POHLMANN: Claims Registration Ends January 18 BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm COMPUTER-SERVICE: Claims Registration Ends January 18 DUMAS VERFAHRENSTECHNIK: Claims Registration Ends January 17 EAD-COMPUTER: Claims Registration Ends January 16 EPGH OFENBAU: Creditors' Meeting Slated for January 18 FBE FENSTERBAU: Claims Registration Ends January 17 GFG GESELLSCHAFT: Creditors' Meeting Slated for January 18 M + S HANDELS: Claims Registration Ends January 18 WCM BETEILIGUNGS: Creditors' Meeting Slated for January 15 H U N G A R Y AES CORP: Joins Electric Drive Transportation Association Board I R E L A N D MICRON TECHNOLOGY: S&P Lifts to BB- Rating on Good Performance NIMMO'S RESTAURANT: Parent's Liquidation Cues Business Closure SPANISH WALK: Creditors Vote to Liquidate Business I T A L Y ALITALIA SPA: Directors Board to Review Non-Core Asset Disposals ALITALIA SPA: Lowers Group's November Net Debt to EUR964 Million ALITALIA SPA: Air France-KLM & SkyTeam Members Mulls Bid DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel FIAT SPA: Eyes EUR5-Billion Operating Profit in 2010 FIAT SPA: Maserati Aims to Raise Deliveries Outside Italy PARMALAT SPA: Selling Parma AC for EUR4 Million PARMALAT SPA: Agrees with Liquidators to Continue TRO to Mar. 15 K A Z A K H S T A N AKJOL CORP: Almaty Court Opens Bankruptcy Proceedings ASIA COMPANY: Creditors Must File Claims by February 8 ATYRAU BROOD: Proof of Claim Deadline Slated for February 13 BANK CENTERCREDIT: Moody's Puts Ba1 Rating to Dutch Unit's Notes BANK CENTERCREDIT: Fitch Assigns Eurobond Long-Term BB- Rating KASPYDORSERVICE LLP: Creditors' Claims Due February 21 MARINE INTER SERVICE: Claims Filing Period Ends February 9 POKROVSKOYE LLP: Creditors Must File Claims by February 14 SAMALTRANS OJSC: Creditors' Claims Due February 21 SELSKOHOZAISTVENNAYA STANTSIYA: Claims Registration Ends Feb. 14 SERPIL TRADE: Proof of Claim Deadline Slated for Feb. 9 TIMIRAZEVSKOYE LLP: Claims Filing Period Ends February 14 K Y R G Y Z S T A N BAKAI-ATINSKY: Public Auction Scheduled for Jan. 23 L U X E M B O U R G DANA CORP: DCC Finalizes Forbearance Agreement with Noteholders DANA CORP: Completes Asset Sale to Hendrickson USA for US$31 Mln DANA CORP: Unions to Appeal Judge Lifland's Officers' Pay Order N E T H E R L A N D S CENTERCREDIT INT'L: Moody's Puts Ba1 Rating to BCC Senior Notes CENTERCREDIT INT'L: Fitch Assigns Eurobond Long-term BB- Rating GTB Finance: Fitch Rates Upcoming Debt Issue at B+/RR4 R U S S I A BELGORODSKIY FACTORY: Assets Sale Slated for Jan. 23 BUILDER LLC: Kaluga Court Names V. Yunin as Insolvency Manager GOR-ENERGO OJSC: Creditors Must File Claims by Feb. 16 IRKUTSKIY COMBINE: Court Names S. Ivasyuk as Insolvency Manager KHANSA-TRANS CJSC: Court Names G. Rabina as Insolvency Manager KONAKOVSKIY FAIENCE: Court Names P. Tarasov to Manage Assets KURGAN-WOOD-TOP-PROM OJSC: Court Starts Bankruptcy Proceedings LOES CJSC: Pskov Court Names P. Kapkin as Insolvency Manager MICRO-EL-TEKH CJSC: Moscow Bankruptcy Hearing Slated for May 15 NORTH AIR: Moscow Court Names A. Fomin as Insolvency Manager SEL-KHOZ-TEKHNIKA: Omsk Court Starts Bankruptcy Process SEVERSTAL OAO: Directors Buy 30,000 Global Depositary Receipts TBILISSKIY SEED: Bankruptcy Hearing Slated for March 23 VOLGOGRADSKIY OJSC: Court Names E. Slushkin to Manage Assets ZARECHENSKIY WOOD-PROM-KHOZ: Names G. Rabina to Manage Assets ZELENOKUMSKIY BRICKWORKS 1: Names T. Magomedov to Manage Assets * European Commission Probes into Russia-Belarus Gas Dispute * Fitch Says Russian Oil Supply to Central Europe Less Reliable S P A I N BANCAJA 10: S&P Junks EUR31.5-Million Class E Notes LADBROKES PLC: Inks Joint Venture Deal with Cirsa Slot S W I T Z E R L A N D BURO LEUENBERGER: Schaffhausen Court Closes Bankruptcy Process DUSS FREDY: Lucerne Court Suspends Bankruptcy Proceedings HSR SOLUTIONS: Zurich Court Suspends Bankruptcy Proceedings K4-HOLDING: Schaffhausen Court Suspends Bankruptcy Proceedings MIE - LASER: Dubendorf Court Suspends Bankruptcy Proceedings PROFARM JSC: St. Gallen Court Starts Bankruptcy Proceedings RESTEM LLC: Zurich Court Suspends Bankruptcy Proceedings SWISSINTER JSC: Wetzikon Court Suspends Bankruptcy Proceedings ZELIN LLC: Zurich Court Suspends Bankruptcy Proceedings ZHB AC: Schaffhausen Court Suspends Bankruptcy Proceedings T U R K E Y DOGAN YAYIN: Subsidiary Acquires Trader Media for US$500 Million DOGAN YAYIN: Fitch Affirms Issuer Default Ratings at B+ HURRIYET GAZETECILIK: Acquires Trader Media for US$500 Million HURRIYET GAZETECILIK: Fitch Places BB Ratings on Watch Negative U K R A I N E GORODOK RESEARCH: Hmelnitskij Court Starts Bankruptcy Process GREEN HORN: Claims Submission Deadline Set January 19 OREHOVSKOE BEET: Creditors Must File Claims by January 20 SPECIAL ASSEMBLING: Creditors Must File Claims by January 20 STARYE BABANY: Creditors Must File Claims by January 19 TH BALCEM: Creditors Must File Claims by January 24 TRIESPASS NOVAN: Creditors Must File Claims by January 19 UNIPROMSERVICE LLC: Creditors Must File Claims by January 19 ZHURAVKA LLC: Claims Submission Deadline Set January 19 U N I T E D K I N G D O M ABBSEAL (U.K.) LTD: Brings In KPMG to Administer Assets B D P JOINTERS: Creditors' Meeting Scheduled for Jan. 18 BAILEY & SMITH: Names Claire Dwyer to Administer Assets BB & EA: Claims Filing Period Ends Jan. 31 BCT OUTDOORS: Appoints Joint Administrators from KPMG BEAUMONT ROSE: Creditors' Claims Due Jan. 22 BENNETTS PLAYCARE: Names Vernon Charles Wright Liquidator BERNSTEIN GROUP: Creditors' Meeting Slated for January 19 BERRYS DIRECT: Taps N. A. Bennett to Liquidate Assets BLUEWATER MARINE: Nominates Liquidator from Mayfields BOOKS FOR STUDENTS: Brings In Liquidators from PwC BOOTS BOARD: Appoints M. S. E. Solomons as Liquidator BRETTON HOLDINGS: Nominates Liquidators from PwC BRISTOL TOOL: Creditors' Claims Due Jan. 31 BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal BRITISH AIRWAYS: Traffic Figures Slide in December 2006 BRUCE BUTCHER: Calls In Liquidators from Kroll BUSY BEES: Taps Liquidator from DTE Leonard Curtis CARLINGS BUTCHERS: Claims Filing Period Ends Jan. 12 CELTIC SAVOURIES: Appoints Administrators from Begbies Traynor COLLINS & AIKMAN: Agrees to Resolve Prepetition Debt with Lear CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds DURA AUTOMOTIVE: Creditors Panel Taps Kramer Levin as Counsel DURA AUTOMOTIVE: Panel Taps Chanin Capital as Financial Advisors DURA AUTOMOTIVE: Auction Sets Bond Price at 24.12% of Face Value ENCHANTED INTERIORS: Names Andrew Appleyard as Administrator FORD MOTOR: Partners with Microsoft on In-Car Digital Systems FRAGONSET RAILWAYS: Taps Begbies Traynor as Joint Administrators FUSION FILLINGS: Taps Buchanans Ltd as Joint Administrators GENERAL MOTORS: Says Highland Rival Bid Could Delay Delphi Deal GENERAL MOTORS: Awards Lithium-Ion Battery Development Contracts GREENFIELD CONSTRUCTION: Creditors' Meeting Slated for Jan. 19 LADBROKES PLC: Inks Joint Venture Deal with Cirsa Slot MOORSIDE ELECTRICAL: Brings In John Bell as Administrator NASDAQ STOCK: Seeks Shareholder Acceptance on Final LSE Offer SOLUTIA INC: Equity Committee Retains Experts For Pharmacia Case TRIMCO COOLAIR: Brings In Administrators from Begbies Traynor WOODVALE EVENTS: Appoints I. E. Walker to Administer Assets * Fitch Says Stable Outlook at Risk in European Auto Industry * Fitch Keeps Neg. Credit Outlook for European Auto Suppliers ********* ============= A U S T R I A ============= ALTHEIM NELL: Creditors' Meeting Slated for January 15 ------------------------------------------------------ Creditors owed money by LLC Altheim, Nell & Partner (FN 234036x) are encouraged to attend the creditors' meeting at 11:00 a.m. on Jan. 15 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 13, 2006 (Bankr. Case No. 3 S 131/06v). Kurt Bernegger serves as the court-appointed property manager of the bankrupt estate. Waltraud Kohlfuerst represents Mr. Bernegger in the bankruptcy proceedings. The property manager can be reached at: Kurt Bernegger c/o Mag. Waltraud Kohlfuerst Jaquingasse 21 1030 Vienna, Austria Tel: 01/799 15 80 Fax: 01/796 59 14 E-mail: kanzlei@bernegger-wt.com BIOGAS LLC: Claims Registration Period Ends January 16 ------------------------------------------------------ Creditors owed money by LLC Biogas (FN 217526t) have until Jan. 16, to file written proofs of claims to court-appointed property manager Hubert Just at: Dr. Hubert Just c/o Dr. Julius Bitter Hauptplatz 7 4560 Kirchdorf/Krems, Austria Tel: 07582/62 0 74 Email: ra.just.kirchdorf@utanet.at ra.bitter@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:15 p.m. on Jan. 30 to consider the adoption of the rule by revision and accountability. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 2nd Floor Steyr, Austria Headquartered in St. Pankraz, Austria, the Debtor declared bankruptcy on Nov. 22, 2006 (Bankr. Case No. 14 S 60/06f). Julius Bitter represents Dr. Just in the bankruptcy proceedings. DSI LLC: Creditors' Meeting Slated for January 18 ------------------------------------------------- Creditors owed money by LLC DSI (FN 82443s) are encouraged to attend the creditors' meeting at 10:15 a.m. on Jan. 18 to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1703 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 22, 2006 (Bankr. Case No. 5 S 155/06p). Georg Unger serves as the court-appointed property manager of the bankrupt estate. Arno Maschke represents Dr. Unger in the bankruptcy proceedings. The property manager can be reached at: Dr. Georg Unger c/o Dr. Arno Maschke Mariahilfer Road 50 1070 Vienna, Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: schulyok-unger@csg.at GRUBER SANIERUNG: Property Manager Declares Insufficient Assets --------------------------------------------------------------- Dr. Wolfgang Kleibel, the court-appointed property manager for LLC Gruber Sanierung- und Projektentwick lung (FN 207522f), declared Nov. 16, 2006, that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Salzburg is yet to rule on the property manager's claim. Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on Oct. 12, 2006 (Bankr. Case No. 23 S 70/06y). The property manager can be reached at: Dr. Wolfgang Kleibel Erzabt-Klotz-Str. 4 5020 Salzburg, Austria Tel: 0662-842281 Fax: 0662-842281-29 E-mail: wolfgang.kleibel@k-b-k.at HOSPOGA LLC: Klagenfurt Court Orders Business Closure ----------------------------------------------------- The Land Court of Klagenfurt entered Nov. 16, 2006, an order closing the business of LLC Hospoga (FN 250875i). Court-appointed property manager Martin Prett recommended the business closure after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Martin Prett Ringmauergasse 8 9500 Villach, Austria Tel: 04242/22 681 Fax: 04242/ 22681-20 E-mail: prett+fattinger@villach.net Headquartered in Faak am See, Austria, the Debtor declared bankruptcy on Oct. 12, 2006 (Bankr. Case No. 41 S 109/06m). MEBRI FITNESSCENTER: Wels Court Orders Business Shutdown -------------------------------------------------------- The Land Court of Wels entered Nov. 16, 2006, an order shutting down the business of LLC Mebri Fitnesscenter (FN 259884h). Court-appointed property manager Gerhard Eigner recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Mag. Gerhard Eigner Ringstrasse 25 4600 Wels, Austria Tel: 07242/58120 Fax: 07242/58120-22 E-mail: OFFICE@EIGNER-ROYER.AT Headquartered in Wels, Austria, the Debtor declared bankruptcy on Oct. 24, 2006 (Bankr. Case No. 20 S 125/06t). SCHMIDT LLC: Property Manager Declares Insufficient Assets ---------------------------------------------------------- Dr. Hans-Joerg Haftner, the court-appointed property manager for LLC Schmidt (FN 91368s), declared Nov. 16, 2006, that the Debtor's property is insufficient to cover creditors' claim. The Land Court of St. Poelten is yet to rule on the property manager's claim. Headquartered in Murstetten, Austria, the Debtor declared bankruptcy on Nov. 8, 2006 (Bankr. Case No. 14 S 183/06m). The property manager can be reached at: Dr. Hans-Joerg Haftner Wiener Road 12 3100 St. Poelten, Austria Tel: 02742/35 42 34 Fax: 02742/35 14 48 E-mail: office@plusjus.at TIERTRANSPORT LLC: Court Orders Business Shutdown ------------------------------------------------- The Land Court of Ried im Innkreis entered Nov. 16, 2006, an order shutting down the business of LLC Tiertransport (FN 113647d). Court-appointed property manager Thomas Brueckl 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 Brueckl Parkgasse 11 - Dr.Th.Senn-Road 18 4910 Ried/Innkreis, Austria Tel: 07752/87 676-0 Fax: 07752/87676-17 E-mail: thomas.brueckl@aon.at Headquartered in Ried im Innkreis, Austria, the Debtor declared bankruptcy on Sept. 21, 2006 (Bankr. Case No. 17 S 35/06p). ============= B E L A R U S ============= * European Commission Probes into Russia-Belarus Gas Dispute ------------------------------------------------------------ At the request of Commissioner Andris Piebalgs, the Gas Coordination Group met to assess the reliability of gas supply through Belarus after the last-minute agreement signed between Gazprom and Belarus on Dec. 31, 2006. The Group assessed the agreement positively and stressed the importance of a consolidated and stable multi-annual agreement to secure gas transit through Belarus. For the first time a Belarussian representative was invited to the meeting "A secure and predictable energy supply is a must for European economy and a right for European citizens," said Commissioner Piebalgs. Security of energy supply is one of the key elements of the European Energy Policy that the Commission is going to present on 10 January." H.E. Vladimir Senko, Ambassador, Head of Mission of Belarus to the European Union, presented the main outline of the agreement from the Belarussian perspective. The Group also reviewed the measures that were taken by the Member States most concerned in case of a temporary supply disruption. In the context of a mild winter and considering the current situation of storage and gas flows, the measures taken by the Member States were considered appropriate to ensure security of supply. After the crisis concerning transit through Ukraine last year, the threats made to security of supply during the recent Russian-Belarus gas dispute clearly emphasized the need for strong cooperation between Member States. About 20% of Russian gas imports in the EU transit through Belarus, mainly to Poland, Germany and Lithuania. The Gas Coordination Group was established by a 2004 Directive dealing with measures to safeguard security of natural gas supply. It is chaired by the European Commission and composed of representatives of Member States, representative bodies of the industry concerned and of relevant consumers. * Fitch Says Russian Oil Supply to Central Europe Less Reliable --------------------------------------------------------------- Fitch Ratings says recent disruptions in crude oil supply via the Druzhba pipeline from Russia across Belarus to Poland and Germany indicate that supplies of Russian crude oil to Central Europe have become less reliable. Belarus has reduced the amount of Russian crude oil supply in transit to Poland and Germany. This is likely to be related to the dispute between Russia and Belarus over the excise tax and transit duty on Russian oil. "Belarus is an important transit country for Russian crude oil to CE given that all three sections of the Druzhba pipeline pass through it," says Arkadiusz Wicik, Associate Director in Fitch's Energy team. So far only the supplies to Poland and Germany have been halted as reported by the Polish crude oil transportation company PERN "Przyjazn" S.A that operates the Polish part of the Druzhba pipeline. However, there may also have been supply disruptions to refineries in Ukraine, Slovakia, the Czech Republic, and Hungary. The crude oil disruptions news came as a surprise given the lack of significant disruptions of crude oil to Poland's PKN Orlen S.A. or Hungary's MOL in the past 10 years. As Fitch notes in its previous reports refineries in the CE region are highly reliant on supplies of oil and gas from Russia. Pipeline deliveries from Russia meet most of the crude oil demand in regional refineries, for example to PKN Orlen S.A., Grupa Lotos S.A., MOL's refineries in Hungary and Slovakia, and Lithuania's Mazeikiu Nafta AB. Nevertheless, Fitch views that the recent supply disruptions do not currently warrant a negative rating action for CE refineries given the obligatory inventory of crude oil and fuels in European Union countries in the CE region. In addition, CE refineries have alternative routes of supplies. However, if supplies are not resumed in the long run, Fitch may review the ratings, as a deficit in pipeline supplies from Russia would have to be met with seaborne imports of Russian crude oil, resulting in additional transportation costs or more expensive crude oil from the North Sea or the Middle East. Such a scenario would considerably affect CE refiners' margins, which are currently some of the highest in Europe thanks to a steep discount of Russian Export Blend crude oil to Brent. =========================== C Z E C H R E P U B L I C =========================== STROJPLAST TACHOV: Stops Production; Alfa Plastik Takes Over ------------------------------------------------------------ Strojplast Tachov has shut down its operations prompting its 270 employees to transfer to rival, Alfa Plastik Bruntal, the Czech Happenings reports. "The company has no staff or assets," said Jan Klima, one of Strojplast's receivers. The receiver further disclosed that the company had transferred all of its real estate in the 1990s, adding that the company cut share capital by CZK207 million from CZK296 million in October 2001. Alfa Plastik took over Strojplast's production June 1, 2006, after the company terminated all of its employees May 31, 2006. The company's managers are currently under police investigation due to "suspicious transactions," the Czech Happenings relays. Strojplast had previously planned hundreds of millions of crowns in investments at the end of 2002. Its 2003 financial statement, the last one made public, disclosed CZK430 million in sales and zero profits, says the Czech Happenings. Alfa Plastik, owned by Czech company PAC, is the largest Czech producer of plastic packages for the food and pharmaceutical industries and for waste management. Employing 500 staff in 2005, it made profits exceeding CZK13 million on CZK650 million in sales. About Strojplast Based in Tachov, Czech Republic, STROJPLAST, a.s. -- http://www.strojplast.cz/-- is a plastic moldings maker that manufactures plastic bottle crates, transport crates, plastic car parts, and plastic household goods. =========== F R A N C E =========== ALCATEL-LUCENT: To Test OLF's WiMAX Pilot in the North Sea ---------------------------------------------------------- Alcatel-Lucent has been selected by OLF, the Norwegian Oil Industry Association, to carry out a Universal WiMAX test in the North Sea. The primary objective is to confirm that WiMAX technology will improve offshore data communication. The deployment is planned for the first quarter of 2007 and should last nine months. OLF is looking to enhance the communication between platforms and moving vessels whatever the weather conditions. It has selected WiMAX notably for its long range and high capacity. The pilot is based on Universal WiMAX IEEE 802.16e-2005 standard equipment. Alcatel-Lucent will provide OLF with its Alcatel- Lucent 9100 WiMAX end-to-end radio solution, including base stations, Wireless Access Controller and Operation and Maintenance Center. Alcatel-Lucent's high-power base stations, equipped with Advanced Antenna System (AAS) technology for beamforming technology will be installed on one of the platforms at BP Norway's Valhall field, while two ships will be equipped with terminal equipment. "We expect considerable improvements in data communication between platforms and ships, compared to traditional technologies," Oyvind Roth, Senior Advicer to OLF, said. "WiMAX will allow high speed and high quality data transfers. It will enable the usage of VoIP along the Norwegian coast and in the off-shore sector. We trust Alcatel-Lucent, the leader in this technology, to make this pilot successful." "This WiMAX pilot in the North Sea is the very first in the oil & gas industry. We are proud to support OLF in this exciting project as we strongly believe in the huge potential of WiMAX," said Lars Boilesen, Head of Alcatel-Lucent's activities in the Nordic and Baltic regions. Alcatel-Lucent's Universal WiMAX solution integrates the most advanced radio technology available on the market today. The Alcatel-Lucent 9116 WiMAX base station is compact and easy-to- install, enabling easy site acquisition, fast rollout and flexible configuration. Its embedded AAS technology enables higher throughputs, longer reach and sharply lowered capital expenditures. Alcatel-Lucent has begun shipping Universal WiMAX IEEE 802.16e- 2005 standard equipment and is supporting a number of WiMAX IEEE 802.16e-2005 trials worldwide. About OLF OLF, The Norwegian Oil Industry Association, -- http://www.olf.no/-- is a professional body and employer's association for oil and supplier companies engaged in the field of exploration and production of oil and gas on the Norwegian Continental Shelf. OLF is a member of the Confederation of Norwegian Business and Industry (NHO).OLF shall contribute to making the Norwegian Shelf an attractive investment and activity area for oil companies and supplier companies. 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. ============= G E R M A N Y ============= ADVANCED MEDICAL: Acquires IntraLase Corp for US$808 Million ------------------------------------------------------------ Advanced Medical Optics Inc. and IntraLase Corp. entered into a definitive agreement for AMO to acquire IntraLase for around US$808 million in cash. Under terms of the agreement, approved by the boards of directors of both companies, following the receipt of fairness opinions from their respective financial advisors, AMO will pay US$25 in cash per share of IntraLase stock and the individually determined cash value per share of outstanding stock options. AMO has arranged committed financing from a consortium of banks to complete the transaction. AMO expects the transaction to be completed early in the second quarter of 2007. The transaction is subject to IntraLase stockholder approval as well as regulatory approvals and other customary closing conditions. "This acquisition offers significant strategic value by further establishing AMO as the global refractive technology leader, positioning us with a broad range of technologies and expertise to serve the needs of comprehensive refractive practices," said AMO Chairman, President and CEO Jim Mazzo. "We believe the transaction benefits eye care practitioners and their patients by bringing together state-of-the-art technologies to define a new standard of care in laser vision correction. Additionally, we believe the transaction is financially attractive and will create significant operating leverage and growth opportunities, as well as stockholder value." "Besides the value that we believe will be created for both companies' stockholders, we think this transaction provides truly unique opportunities," commented IntraLase President and CEO Robert J. Palmisano. "There will now be the ability to advance our femtosecond laser technology in a coordinated way, both developmentally and commercially, with the world's leading excimer laser technology. Also, this combination provides the opportunity for further innovation and beneficial refinement of LASIK procedures that can and should grow the overall LASIK market." Mr. Palmisano concluded, "I am confident that this combination will provide for better surgical procedures for patients, happier customers and future opportunities for employees." Strategic Rationale The addition of the IntraLase femtosecond laser technology into AMO's portfolio of refractive technologies complements AMO's fundamental growth strategy. Key benefits: -- builds a clearly differentiated position in the ophthalmic industry, uniquely positioning AMO as the eye care professional's "complete refractive solution," with a suite of corneal and lens-based products and services that address a lifetime of refractive vision needs; -- serves practitioners and patients across the globe by linking AMO's market-leading Advanced CustomVue(TM) laser vision correction procedure and market-leading IntraLase femtosecond laser innovations to define a new standard of care: custom all-laser LASIK, a procedure that delivers superior clinical outcomes and enhances surgeon productivity; -- optimizes cross-selling opportunities between installed bases of both companies; -- combines R&D expertise in excimer lasers, femtosecond lasers, diagnostics and optics; and -- blends two companies' infrastructures and core competencies to improve operating leverage and create strong platforms for international expansion. Revised Financial Guidance AMO expects the transaction to be dilutive to 2007 adjusted earnings per share (EPS) and slightly accretive to 2008 adjusted EPS. As a result of this transaction, AMO expects amortization to increase by approximately US$30 million on an annualized basis, which would bring the company's total annual amortization to approximately US$70 million or about US$0.70 per share on an after-tax basis. For more information, see the "Use of Non-GAAP Measures" section later in this release. Assuming successful close of the transaction early in the second quarter of 2007, AMO's financial guidance is as follows: 2007 2008 With Previous Acquisition -------- ----------- Revenue 1,060-1,080 1,150-1,175 1,350-1,370 (in US$ millions) Adjusted EPS 1.85-2.00 1.40-1.55 2.25-2.40 UBS Investment Bank is acting as lead financial advisor and Goldman Sachs is acting as co-financial advisor to AMO. UBS Investment Bank is acting as lead arranger of a US$900 million acquisition facility for AMO. Bank of America and Goldman Sachs are acting as joint-arrangers of the acquisition facility. Bank of America is acting as lead financial advisor and JPMorgan is acting as co-financial advisor to IntraLase. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to AMO. Stradling Yocca Carlson & Rauth is acting as legal advisor to IntraLase. IntraLase Technology More than 1,200 surgeons worldwide have incorporated the IntraLase Method(TM) into their LASIK practices. Many U.S. ophthalmic teaching institutes, including Duke University Medical School, the Wilmer Eye Institute at Johns Hopkins, the Bascom Palmer Eye Institute at University of Miami, and Stanford University, use the IntraLase FS(TM) laser technology to train future generations of LASIK surgeons. The 4th generation IntraLase FS(TM) laser uses an infrared light beam, generating 60,000 pulses per second, to prepare the intracorneal bed and create the corneal flap in the first step of LASIK. -- using an "inside-out" process, the laser beam is precisely focused to a point within the cornea; -- the laser pulses then create thousands of microscopic bubbles which define the incision within the intracorneal surface; -- along the edge, bubbles are then stacked up at a beveled angle -- a feature unique to the IntraLase Method(TM) -- to the corneal surface to complete the flap; -- from start to finish, the IntraLase Method(TM) typically takes 15-30 seconds; -- the physician then exposes the prepared corneal bed for excimer laser treatment (the second step of LASIK) by lifting the flap. -- the LASIK procedure is complete when the flap is securely repositioned on its beveled edge. Key benefits of IntraLase's technology: -- enabling surgeons to more precisely control the first critical step of LASIK including flap diameter, depth, hinge location and width, and side cut architecture. -- providing a perfectly thin and planar flap resulting in improved biomechanical stability. -- enabling for precise repositioning, alignment and seating after the LASIK procedure is completed, reducing the risk of flap displacement, a complication occasionally seen after microkeratome flaps; -- enhanced safety profile as evidenced in a presentation by Elizabeth A. Davis, M.D. and Richard L. Lindstrom, M.D.: "Early Experience with the 30 kHz IntraLase." -- clinically proven superior overall visual outcomes in both standard and custom LASIK procedures with more patients achieving visual acuity of 20/20, 20/15, and 20/12.5 as evidenced in a presentation by Daniel S. Durrie: "Randomized, Prospective, Contralateral Study of LASIK: IntraLase laser Versus Mechanical Keratome." About IntraLase Corp. Headquartered in Irvine, Calif., -- http://www.intralase.com/-- IntraLase designs, develops, and manufactures an ultra-fast laser that is revolutionizing refractive and corneal surgery by creating safe and more precise corneal incisions. Delivering on the promise of ophthalmic laser technology, the IntraLase FS(TM) laser, related software, and disposable devices replace the hand-held microkeratome blade used during LASIK surgery. About Advanced Medical Optics Based in Santa Ana, California, Advanced Medical Optics, Inc. (NYSE: EYE) -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs approximately 3,600 worldwide. The company has operations in 24 countries and markets products in 60 countries. In Europe, the company maintains operations in Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. * * * In October 2006, Fitch simultaneously affirmed and withdrew its ratings for Advanced Medical Optics Inc. Affected ratings include the company's 'B+' Issuer Default Rating and 'BB+/RR1' Senior Secured Credit Facility Rating. Additionally, Moody's Investors Service confirmed its B1 Corporate Family Rating for Advanced Medical Optics in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. ADVANCED MEDICAL: S&P Places BB- Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings for Advanced Medical Optics Inc., including the 'BB-' corporate credit rating, on CreditWatch with negative implications, reflecting the company's intention to acquire IntraLase Corp. for US$808 million. While the acquisition is strategically attractive, AMO is paying a high multiple (around 30x EBITDA) and using debt to finance the transaction," said Standard & Poor's credit analyst Cheryl Richer. "The company's limited debt capacity within constraints of the current rating reflects the issuance of US$500 million of convertible debentures in mid 2006 to finance a share repurchase program." IntraLase provides a complementary technology to AMO's LASIK business: It designs, develops, and manufactures a computer-controlled femtosecond laser that replaces the hand- held microkeratome blade used during LASIK surgery. IntraLase's proprietary laser and disposable patient interfaces are presently marketed throughout the U.S. and 32 other countries. AMO's largely stock-financed acquisition of VISX Inc. for US$1.4 billion in May 2005 transformed it into the No. 1 Laser Vision Correction player. While LVC revenue growth has been bolstered by custom procedures, AMO believes it can reinvigorate stagnant LASIK demand by providing the more advanced femtosecond technology. AMO holds leading positions in its three business segments -- cataract/implants, eye care, and LVC -- which accounted for 52%, 25%, and 23% of revenues for the first half of 2006, respectively. Geographic diversity is demonstrated by the 57% of sales derived outside the U.S. Standard & Poor's will meet with management to review AMO's prospects for success in the LASIK area and its ability to reduce debt in a timely manner following the IntraLase acquisition to determine if a downgrade is warranted. S&P anticipates that the rating, if lowered, would not fall by more than one notch. AUTOHAUS POHLMANN: Claims Registration Ends January 18 ------------------------------------------------------ Creditors of Autohaus Pohlmann GmbH have until Jan. 18 to register their claims with court-appointed provisional administrator Ulrich Wenzel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 14, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 301 3rd Floor Branch Linden Road 6 14467 Potsdam, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Potsdam opened bankruptcy proceedings against Autohaus Pohlmann GmbH on Nov. 15, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Autohaus Pohlmann GmbH Attn: Marion Pohlmann, Manager Goettliner Chaussee 33 14712 Rathenow, Germany The administrator can be contacted at: Dr. Ulrich Wenzel Grossbeerenstrasse 231, 14480 Potsdam, Germany BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm ---------------------------------------------------------------- BenQ Mobile GmbH & Co OHG, the bankrupt German unit of Taiwan- based BenQ Corp., has attracted potential investors, including an unidentified U.S.-German consortium with IT and telecommunications backgrounds, according to published reports. "The German-American group is one of several groups interested in BenQ," Regine Petzsch, a spokeswoman for insolvency administrator Martin Prager, was quoted by the IDG News Service as saying. "There is a sense of urgency with the negotiations because everyone realizes that the longer the plants remain idle, the more difficult it will be to start them up again." Ms. Petzsch declined to comment on the identity of the interested parties. John Blau of IDG News Service states that ministry officials in Dusseldorf and Bavaria are looking for ways to rescue the company's facilities in Kamp-Lintfort, Bocholt and Munich. Ministry officials, investors, Siemens executives, BenQ Mobile workers' council representatives, the investor group and Mr. Prager discussed the consortium's offer Jan. 8 at a special meeting at the Ministry of Economics in the state government of North Rhine Westphalia in Dusseldorf, Mr. Blau reports. Unnamed sources told German news magazine Spiegel that the investor group is seeking: -- up to EUR100 million in state-backed credit lines; -- compensation for employing 800 BenQ Mobile employees, who have since been transferred to a temporary organization funded by Siemens and the Federal Employment Agency; and -- rights to BenQ Corp.'s brand names. Spiegel reveals that Hansjorg Beha, a technology investor and former IT director at then Daimler-Benz, is one of the members of the U.S.-German group. Sentex Sensing Bid Meanwhile, Henrik Rubinstein, Sentex Sensing Tech.'s chief executive, told Die Welt that Sentex plans to bid for BenQ Mobile, AFX News Limited relates. Terms of the deal were not disclosed. A Munich Court opened insolvency proceedings against BenQ Mobile on Jan. 1 after Mr. Prager failed to meet a Dec. 31 deadline in finding a buyer for the company. CIO Magazine related that potential buyers were obliged to take over the entire company and its work force prior to the Dec. 31, 2006 deadline. However, as of Jan. 1, potential investors can bid to acquire all or a part of the company, without the law binding them to take over any former employees, CIO Magazine said. As reported in the TCR-Europe on Sept. 29, the board of directors of BenQ Corp. decided to discontinue capital injection into BenQ Mobile in order to stem unsustainable losses in the latter's operations. Subsequently it filed an insolvency petition for the German mobile phone unit. Bloomberg News reported that more than 3,000 manufacturing workers have been affected in the company's insolvency proceedings after it disclosed of plans to reduce two-thirds of its work force. The mobile unit took over a factory in Kamp Lintfort in western Germany from Siemens, which cost Siemens more than US$1 billion. Under the agreement, BenQ will have the right to use the Siemens brand for five years. Siemens owns a 2.5 percent stake in BenQ Corp. About Siemens Siemens (Berlin and Munich) -- http://www.siemens.com/-- is a global powerhouse in electrical engineering and electronics. The company has around 461,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal 2005 (ended September 30), Siemens had sales from continuing operations of EUR75.4 billion and net income of EUR3.058 billion. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. * * * As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. COMPUTER-SERVICE: Claims Registration Ends January 18 ----------------------------------------------------- Creditors of Computer-Service Grosse Druck GmbH have until Jan. 18 to register their claims with court-appointed provisional administrator Jens Koeke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 2, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goettingen Hall B 11 Berliner Road 8 37073 Goettingen, 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 Goettingen opened bankruptcy proceedings against Computer-Service Grosse Druck GmbH on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Computer-Service Grosse Druck GmbH Attn: Bernd Keil, Manager Adolf-Hoyer-Road 5 37089 Goettingen, Germany The administrator can be contacted at: Jens Koeke Obere Karspuele 36 37073 Goettingen, Germany Tel: 0551/5085920 Fax: 0551/5085921 DUMAS VERFAHRENSTECHNIK: Claims Registration Ends January 17 ------------------------------------------------------------ Creditors of DUMAS Verfahrenstechnik GmbH have until Jan. 17 to register their claims with court-appointed provisional administrator Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Feb. 28, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against DUMAS Verfahrenstechnik GmbH on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: DUMAS Verfahrenstechnik GmbH Koenigsberger Weg 34 65719 Hofheim am Taunus, Germany The administrator can be contacted at: Dr. Georg Bernsau Zeilweg 42 D-60439 Frankfurt/Main, Germany Tel: 069/963761-130 Fax: 069/963761-145 EAD-COMPUTER: Claims Registration Ends January 16 ------------------------------------------------- Creditors of EAD-Computer GmbH have until Jan. 16 to register their claims with court-appointed provisional administrator Henning Jung. Creditors and other interested parties are encouraged to attend the meeting at 2:10 a.m. on Feb. 13, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanover Hall 226 2nd Floor Office Building Hamburg Avenue 26 30161 Hanover, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hanover opened bankruptcy proceedings against EAD-Computer GmbH on Nov. 16, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: EAD-Computer GmbH Ahrensburger Str. 1 30659 Hanover, Germany Attn: Georg Schuster, Manager Bleichstr. 19 32547 Bad Oeynhausen, Germany The administrator can be contacted at: Henning Jung Odeonstr. 2 30159 Hanover, Germany Tel: 0511/353960-60 Fax: 0511/353960-69 EPGH OFENBAU: Creditors' Meeting Slated for January 18 ------------------------------------------------------ The court-appointed provisional administrator for EPGH Ofenbau Vermoegensverwaltungsgesellschaft mbH, Knut Rebholz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Jan. 18. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:00 a.m. on April 26, at the same venue. Creditors have until March 1 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against EPGH Ofenbau Vermoegensverwaltungs GmbH on Nov. 24, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EPGH Ofenbau Vermoegensverwaltungsgesellschaft mbH Grellstr. 75 10409 Berlin, Germany The administrator can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin, Germany FBE FENSTERBAU: Claims Registration Ends January 17 --------------------------------------------------- Creditors of FBE Fensterbau Eberswalde GmbH have until Jan. 17 to register their claims with court-appointed provisional administrator Udo Feser. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Feb. 21, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder), Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt (Oder) opened bankruptcy proceedings against FBE Fensterbau Eberswalde GmbH on Nov. 28, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: FBE Fensterbau Eberswalde GmbH Marie-Curie-Str. 5 16225 Eberswalde, Germany The administrator can be contacted at: Udo Feser Uhlandstrasse 165/166 10719 Berlin, Germany GFG GESELLSCHAFT: Creditors' Meeting Slated for January 18 ---------------------------------------------------------- The court-appointed provisional administrator for GFG Gesellschaft fuer Grundbesitz mbH & Co. Flachglashandel KG, Udo Feser, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on Jan. 18. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:10 a.m. on March 29, at the same venue. Creditors have until Feb. 15 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against GFG Gesellschaft fuer Grundbesitz mbH & Co. Flachglashandel KG on Nov. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GFG Gesellschaft fuer Grundbesitz mbH & Co. Flachglashandel KG Kaubstr. 7 10713 Berlin, Germany The administrator can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin, Germany M + S HANDELS: Claims Registration Ends January 18 -------------------------------------------------- Creditors of m + s Handels + Service GmbH have until Jan. 18 to register their claims with court-appointed provisional administrator Thomas Alter. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Feb. 8, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Erfurt opened bankruptcy proceedings against m + s Handels + Service GmbH on Nov. 17, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: m + s Handels + Service GmbH Attn: Matthias Stoelzel, Manager Riessner Road 10 99427 Weimar, Germany The administrator can be contacted at: Thomas Alter Schillerstr. 2 99096 Erfurt, Germany WCM BETEILIGUNGS: Creditors' Meeting Slated for January 15 ---------------------------------------------------------- The court-appointed provisional administrator for WCM Beteiligungs- und Grundbesitz-Aktiengesellschaft, Michael C. Frege, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:00 a.m. on Jan. 15. The meeting of creditors and other interested parties will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report at 9:00 a.m. on April 23, at the same venue. Creditors have until March 22 to register their claims with the court-appointed provisional administrator. The District Court of Frankfurt/Main opened bankruptcy proceedings against WCM Beteiligungs- und Grundbesitz- Aktiengesellschaft on Nov. 21, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WCM Beteiligungs- und Grundbesitz-Aktiengesellschaft Attn: Karl-Ernst Schweikert, Manager Opernplatz 2 60313 Frankfurt/Main, Germany The administrator can be reached at: Michael C. Frege Barckhausstrasse 12-16 60325 Frankfurt/Main, Germany Tel: 069/71701-300 Fax: 069/71701-40-410 ============= H U N G A R Y ============= AES CORP: Joins Electric Drive Transportation Association Board --------------------------------------------------------------- The AES Corp. has joined the Electric Drive Transportation Association or EDTA, and Robert Hemphill, Executive Vice President of AES, will serve as AES' representative on the EDTA Board of Directors. EDTA is the industry association representing battery, hybrid and fuel cell transportation technologies and supporting infrastructure. AES joins four energy companies on the EDTA Board, which also includes auto manufacturers, component suppliers, and other industry organizations. "AES is committed to meeting a growing market need for alternative energy resources and technologies," said Robert Hemphill. "We see electric drive as a practical way to meet our transportation needs while also supporting the environment. We are pleased to join the Board of EDTA and to work with all of EDTA's members to support the use of electric transportation." "Electric drive technology is an indispensable part of the effort to create a secure and sustainable energy future," said EDTA President Brian Wynne. "AES' leadership on the Board will accelerate EDTA's efforts in Washington, DC and throughout our industry." AES plans to invest in excess of US$1 billion over the next three years in the alternative energy sector, including power wind generation, global climate change and liquefied natural gas. Through its global climate change business, AES is targeting the production of up to 40 million tons per year of emission offset credits by 2012. About EDTA EDTA is the preeminent U.S. industry association dedicated to the promotion of electric drive as the best means to achieve the highly efficient and clean use of secure energy in the transportation sector. As a unified voice for the electric drive industry, EDTA's membership includes a diverse representation of vehicle and equipment manufacturers, energy providers, component suppliers and end users. EDTA supports the sustainable commercialization of all electric drive transportation technologies by providing in-depth information, education, industry networking, public policy advocacy and international conferences and exhibitions. About AES Corp. AES Corp. -- 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. * * * As reported in the TCR-Europe on Oct. 23, 2006, Moody's Investors Service affirmed its B1 Corporate Family Rating for AES Corp. in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. ============= I R E L A N D ============= MICRON TECHNOLOGY: S&P Lifts to BB- Rating on Good Performance -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Micron Technology Inc. to 'BB-' from 'B+'. The outlook is stable. "The upgrade reflects the company's improving business diversity, good operating performance, and sustained satisfactory capitalization," said Standard & Poor's credit analyst Bruce Hyman. The ratings on Boise, Idaho-based Micron reflect the challenges of supplying capital- and technologically-intensive products in an environment of severe price pressures and aggressive competition, tempered by the company's moderate financial policies and good industry position. Micron has been diversifying its business away from the commodity dynamic random access memory industry, used in PCs. Micron also supplies specialty DRAMs for servers, networking and wireless applications; NAND flash memories for music players through a joint venture with Intel Corp.; and is the leading supplier of complementary metal-oxide semiconductors image sensors for phones. Micron is the fifth-largest DRAM supplier, holding about a 10% share of the global market, after Samsung Electronics Co. Ltd., Qimonda AG, Hynix Semiconductor Inc., and Elpida Memory Inc. Micron has substantially reduced its position in the highly challenging commodity DRAM market. Commodity DRAM margins are now well below the low-20% corporate average (after D&A), while most other products' gross margins are in the 40% area. About 20%-25% of wafers entering production are for imaging, a similar amount are specialty DRAM, 15%-20% NAND, and about 40% commodity PC DRAM; the percentages vary seasonally. PC DRAMs had been 75% of wafer starts in the November 2004 quarter. IM Flash Technologies LLC, Micron's 51%-owned NAND joint venture with Intel Corp., began operations in January 2006. The business will supply a significant portion of Apple Computer Corp.'s iPod memory needs in addition to merchant market sales. IM operates a 300-millimeter wafer fabrication plant in Virginia, and uses some capacity in Micron's Idaho plant. Micron's NAND market share was in the low single digits entering 2006. Total NAND output could double by year-end as a Utah plant comes on line, and the company plans to produce NAND chips in Singapore in 2008. NIMMO'S RESTAURANT: Parent's Liquidation Cues Business Closure -------------------------------------------------------------- Creditors of Spanish Walk placed the company into liquidation and closed its restaurant, Nimmo's Restaurant and Wine Bar, The Sunday Business Post reports. According to the report, the creditors appointed a liquidator for the Debtor during a creditors' meeting in December. The Sunday Business Post reveals that Spanish Walk's main asset would likely be the remaining 15-year lease for the building where Nimmo's is operating. About Nimmo's Restaurant Headquartered in Galway, Ireland, Nimmo's Restaurant and Wine Bar was established by Harriet Leander, and was named after Scottish engineer Alexander Nimmo who built roads and port facilities in Ireland. Two years ago, Ms. Leander told The Sunday Business Post that she decided to sell part of the business and remain as co-owner, but later sold her entire stake to Dave Sweeney. SPANISH WALK: Creditors Vote to Liquidate Business -------------------------------------------------- Creditors of Spanish Walk placed the company into liquidation and closed its restaurant, Nimmo's Restaurant and Wine Bar, The Sunday Business Post reports. According to the report, the creditors appointed a liquidator for the Debtor during a creditors' meeting in December. The Sunday Business Post reveals that Spanish Walk's main asset would likely be the remaining 15-year lease for the building where Nimmo's is operating. About Nimmo's Restaurant Headquartered in Galway, Ireland, Nimmo's Restaurant and Wine Bar was established by Harriet Leander, and was named after Scottish engineer Alexander Nimmo who built roads and port facilities in Ireland. Two years ago, Ms. Leander told The Sunday Business Post that she decided to sell part of the business and remain as co-owner, but later sold her entire stake to Dave Sweeney. ========= I T A L Y ========= ALITALIA SPA: Directors Board to Review Non-Core Asset Disposals ---------------------------------------------------------------- The Board of Directors of Alitalia S.p.A. will convene in mid- January to discuss possible disposals of non-strategic assets and of the non-instrumental property. The Board would also review the carrier's results for November, when the Alitalia Group posted a decrease in net liabilities to EUR964 million. The Board will also convene at the end of the month to discuss the carrier's financial needs for the rest of 2007. Formal Bidding Process In a TCR-Europe report on Jan. 3, the Italian government formally launched the bidding process for its 30.1% stake in troubled national carrier Alitalia S.p.A. on Dec. 29, 2006. Italy's Ministry of Economy and Finance is inviting interested parties to submit a non-binding offer for around 30.1% to 49.9% of Alitalia's capital and 1,207,147,404 convertible bonds of the carrier's 7.5% 2002-2010 debenture loan. The sale will take place through a competitive procedure involving direct negotiations with potential buyers. Interested parties, which should have at least EUR100 million in capital, have until 6:00 p.m. on Jan. 29, 2007, to submit their written expression of interest to Merrill Lynch International, the sale advisor. According to the Ministry, potential buyers will be selected based on the economic terms of the offers received and an analysis of the business plans. The Ministry will also examine the compatibility of the offers and business plans with the Alitalia's restructuring, development and relaunch objectives. The Ministry also outlined mandatory commitments for the buyer to: -- keep at least a 30.1% stake in Alitalia until the business plan is successfully carried out: -- safeguard Alitalia's national identity; and -- guarantee the quality and quantity of services offered and coverage of the territory. Several Italian entrepreneurs are reportedly interested in Alitalia, The Times reports. Local bets include: -- Carlo Toto, founder of Air One, -- Luca di Montezemolo, head of Fiat and Ferrari; -- Diego Della Valle, chief of the Tod's shoe empire; and -- Banca Intesa and Sanpaolo IMI; As reported in the TCR-Europe on Jan. 5, Paolo Alazraki, owner of Real Dreams Italy Srl, heads a group of 16 investors that indicated their interest in acquiring the national carrier. The government aims to complete the process this month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ALITALIA SPA: Lowers Group's November Net Debt to EUR964 Million ---------------------------------------------------------------- Alitalia Group's net debt as of Nov. 30, 2006, amounted to EUR964 million, showing a reduction in net indebtedness of EUR8 million (-0.8%) compared to the situation on Oct. 31, 2006. The net debt of the parent company Alitalia S.p.A. on Nov. 30, 2006, including short-term net financial credits for subsidiaries, amounted to EUR939 million showing a reduction of net indebtedness of EUR9 million (-0.9%) compared to net debt as of Oct. 31, 2006. Cash-to-hand and short-term financial credits on Nov. 30, 2006, at the Group level and for Alitalia, amounted to EUR752 million and EUR785 million respectively; the corresponding figures on Oct. 31, 2006, were EUR769 million and EUR801 million. It should be noted that on Nov. 30, 2006, there were several leasing contracts at the Group level -- referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR136 million -- whose capital share, including lease closure value, amounted to EUR152 million, of which EUR21 million represent the current capital share falling due within 12 months of the reference date, with EUR19 million held by the parent company. By comparison, the same figure as of Oct. 31, 2006, amounted to EUR154 million, of which EUR21 million euros falling due in the 12 months from the reference date; the corresponding figures for the parent company on Oct. 31, 2006, amounted to EUR138 million and EUR19 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees -- mortgages on aircraft - -- or by personal guarantees -- mainly guarantees issued by banks for export credit. The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During November 2006, repayments were made of medium/long-term financing amounting to about EUR23 million euros. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Nov. 30, 2006, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, there were no outstanding sums or payment irregularities on Nov. 30, 2006, both for the parent company and for other Group companies, except for those relating to disputed situations. Regarding the latter, there were outstanding sums owed to a single airport management company for disputed debts amounting to a total of EUR82 million on Nov. 30, 2006. Pending Petitions In addition, decisions are still pending for the petitions filed by Alitalia regarding: -- injunctions issued by an airport management company for a total of about EUR14 million (5 decrees); -- a further injunction has been issued by an IT services supplier for about EUR812,000 (1 decree); -- another injunction has been issued by a professional studio for EUR534,000; -- a contractor for restructuring work has issued an injunction for about EUR635,000 (1 decree); -- an injunction issued by a supplier of on-board movies for around EUR909,000 (1 decree); and -- injunctions issued by suppliers for a total of around EUR110,000 (6 decrees). Except for the above, there are no other injunction orders or executive actions undertaken by creditors notified as of Nov. 30, 2006, nor are there any threats by suppliers to suspend operations. Italian stock market regulator Commissione Nazionale per le Societa e la Borsa has asked Alitalia to submit its debt position monthly, a requirement for companies on the regulator's black list. Consob has asked Alitalia to file monthly reports on its debt situation, as it does for all companies on its 'black list'. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ALITALIA SPA: Air France-KLM & SkyTeam Members Mulls Bid -------------------------------------------------------- Air France-KLM considers forming a consortium with members of the SkyTeam Alliance to bid for Italian national carrier Alitalia S.p.A., AFX News reports citing Finanza & Mercati. SkyTeam members Korean Air, Aeromexico, and CSA Czech Airlines are interested in acquiring a stake in Alitalia, the financial magazine relates. The SkyTeam alliance also includes Delta Air Lines Inc., China Southern Airlines Co., Continental Airlines Inc. and Northwest Airlines Corp. Meanwhile, Italian stock market regulator Commissione Nazionale per le Societa e la Borsa has asked Alitalia to submit its debt position monthly, a requirement for companies on the regulator's black list. Consob has asked Alitalia to file monthly reports on its debt situation, as it does for all companies on its 'black list'. Formal Bidding Process In a TCR-Europe report on Jan. 3, the Italian government formally launched the bidding process for its 30.1% stake in troubled national carrier Alitalia S.p.A. on Dec. 29, 2006. Italy's Ministry of Economy and Finance is inviting interested parties to submit a non-binding offer for around 30.1% to 49.9% of Alitalia's capital and 1,207,147,404 convertible bonds of the carrier's 7.5% 2002-2010 debenture loan. The sale will take place through a competitive procedure involving direct negotiations with potential buyers. Interested parties, which should have at least EUR100 million in capital, have until 6:00 p.m. on Jan. 29, 2007, to submit their written expression of interest to Merrill Lynch International, the sale advisor. According to the Ministry, potential buyers will be selected based on the economic terms of the offers received and an analysis of the business plans. The Ministry will also examine the compatibility of the offers and business plans with the Alitalia's restructuring, development and relaunch objectives. The Ministry also outlined mandatory commitments for the buyer to: -- keep at least a 30.1% stake in Alitalia until the business plan is successfully carried out: -- safeguard Alitalia's national identity; and -- guarantee the quality and quantity of services offered and coverage of the territory. Several Italian entrepreneurs are reportedly interested in Alitalia, The Times reports. Local bets include: -- Carlo Toto, founder of Air One, -- Luca di Montezemolo, head of Fiat and Ferrari; -- Diego Della Valle, chief of the Tod's shoe empire; and -- Banca Intesa and Sanpaolo IMI; As reported in the TCR-Europe on Jan. 5, Paolo Alazraki, owner of Real Dreams Italy Srl, heads a group of 16 investors that indicated their interest in acquiring the national carrier. The government aims to complete the process this month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel --------------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, has added HSBC Bank USA, National Association, to the Official Committee of Unsecured Creditors in DURA Automotive Systems, Inc. and its debtor affiliates' Chapter 11 cases. The Creditors Committee now comprises: (1) Wilfrid Aubrey LLC Attn: Nicholas W. Walsh 100 William Street Suite 1850 New York, NY 10038 Phone: 212-675-4906 Fax: 212-675-3626 (2) BNY Trust Company Midwest Attn: Robert H. Major 6525 W. Campus Oval New Albany, OH 43054 Phone: 614-775-5278 Fax: 614-775-5636 (3) U.S. Bank National Association Attn: James E. Murphy 100 Wall Street Suite 1600 New York, NY 10005 Phone: 212-361-6174 Fax: 212-514-6841 (4) International Union, UAW Attn: Niraj Ganatra, Esq. 8000 East Jefferson Avenue Detroit, MI 48214 Phone: 313-926-5216 Fax: 313-926-5240 (5) Pension Benefit Guaranty Corporation Attn: William McCarron, Jr. 1200 K Street N.W. Washington, D.C. 20005 Phone: 202-326-4000, ex. 3471 Fax: 202-326-4112 (6) Johnson Electric N.A., Inc. Attn: Douglas G. Eberle 47660 Halyard Drive Plymouth, MI 48170 Phone: 734-392-5308 Fax: 734-392-5388 (7) Thompson I.G., LLC Attn: Christine Maria DeSonia 3196 Thompson Rd. Fenton, MI 48430 Phone: 810-629-9558 Fax: 810-629-8342 (8) HSBC Bank USA, National Association Attn: Robert A. Conrad 452 Fifth Avenue New York, NY 10018 Phone: 212-525-1314 Fax: 212-525-1300 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). FIAT SPA: Eyes EUR5-Billion Operating Profit in 2010 ---------------------------------------------------- Fiat S.p.A. aims to double its net profit this year and post EUR5 billion in operating profits in 2010, Agenzia Giornalistica Italia reports citing company Chief Executive Sergio Marchionne. "The aim is to arrive at 2010 with EUR5 billion in operating profits. 10,000 billion Lira, a huge number, never reached before in Fiat's past," Mr. Marchionne said during a visit at Fiat's Piedimonte San Germano plant. "We are talking about an enormous result thanks to the work of all of the sectors. This is a huge goal that the group has never reached in the past. This was possible only due to the collective work of Fiat" Mr. Marchionne revealed Fiat would achieve the goal by strengthening and expanding its international, AGI relays. "We have announced quite a few in the last two years and these will continue," Mr. Marchionne said. "The future of Fiat Auto is to find international partners with whom to develop its structure without running particular risks." Meanwhile, Mr. Marchionne announced the roll-off of its Bravo car, produced at Fiat's Piedimonte San Germano plant, in February. He also disclosed of the launching of its Delta car, manufactured at the company's Cassino site, at the end of 2007, AGI reports. About Fiat Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat manufactures cars in Italy, Poland, Brazil and Argentina, with joint venture productions in France, Turkey, Egypt South Africa, India, Russia and China. * * * As reported in the TCR-Europe on Nov. 6, 2006, Moody's Investors Service changed the outlook on Fiat S.p.A.'s Ba3 Corporate Family Rating to positive from stable and affirmed the long-term senior unsecured ratings as well as the short-term non-Prime rating. Outlook Actions: Issuer: Fiat Finance & Trade Ltd. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance Canada Ltd. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance Luxembourg S.A. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance North America Inc. * Outlook, Changed To Positive From Stable Issuer: Fiat France S.A. * Outlook, Changed To Positive From Stable Issuer: Fiat S.p.A. * Outlook, Changed To Positive From Stable Fiat's Ba3/non-Prime ratings continue to reflect -- Fiat Group's scope and geographically well spread operations, -- the solid market position of Case New Holland and its potential to improve its highly indebted financial profile, and -- Iveco's stable market share in the European truck markets. On Oct. 4, 2006, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. This follows Fiat's exercise of its call option to buy back 29% of Ferrari's capital from a consortium led by Mediobanca. Fitch said the Outlook is Positive. On Aug. 8, 2006, Standard & Poor's Ratings Services raised its long- term corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. FIAT SPA: Maserati Aims to Raise Deliveries Outside Italy --------------------------------------------------------- Maserati S.p.A., the luxury- and sports-car unit of Fiat S.p.A., aims to sell 7,000 vehicles and raise deliveries outside Italy by the end of the year, Bloomberg News reports citing Giancarlo Binetti, sales chief of the Maserati division, as saying. "The markets in which we believe we can grow well are four, including the U.S., Middle East, China and Japan," Mr. Binetti told Bloomberg. The division plans to raise sales by 30% in the U.S. and 45% in Japan in 2007 and doubles it in the next two to three years. Maserati is one of CEO Sergio Marchionne's attempts to Fiat's turnaround. Sales of Maserati increased 0.5 percent in 2006, Mr. Binetti disclosed. The division sold 4,171 cars in the first nine months of 2006 and had an operating loss of EUR32 million. About Fiat Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Nov. 6, Moody's Investors Service changed the outlook on Fiat S.p.A.'s Ba3 Corporate Family Rating to positive from stable and affirmed the long-term senior unsecured ratings as well as the short-term non-Prime rating. Outlook Actions: Issuer: Fiat Finance & Trade Ltd. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance Canada Ltd. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance Luxembourg S.A. * Outlook, Changed To Positive From Stable Issuer: Fiat Finance North America Inc. * Outlook, Changed To Positive From Stable Issuer: Fiat France S.A. * Outlook, Changed To Positive From Stable Issuer: Fiat S.p.A. * Outlook, Changed To Positive From Stable Fiat's Ba3/non-Prime ratings continue to reflect -- Fiat Group's scope and geographically well spread operations, -- the solid market position of Case New Holland and its potential to improve its highly indebted financial profile, and -- Iveco's stable market share in the European truck markets. On Oct. 4, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. This follows Fiat's exercise of its call option to buy back 29% of Ferrari's capital from a consortium led by Mediobanca. Fitch said the Outlook is Positive. On Aug. 8, Standard & Poor's Ratings Services raised its long- term corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. PARMALAT SPA: Selling Parma AC for EUR4 Million ----------------------------------------------- Parmalat S.p.A. plans to sell soccer team Parma AC for at least EUR4 million to focus on its core operations, Bloomberg News says. Interested parties have until today, Jan. 10, to submit non- binding offers, Parmalat said in a published notice. Parmalat said potential buyers have to indicate how much capital they are willing to inject to "reinforce the team's financial structure and guarantee its competitiveness." Two-time UEFA Cup champion Parma AC is currently second from bottom in the Serie A division with 12 points. The team is trying to avoid relegation by not landing at the bottom three. 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 SPA: Agrees with Liquidators to Continue TRO to Mar. 15 ---------------------------------------------------------------- Gordon I. MacRae and James Cleaver, the Joint Official Liquidators of Parmalat Capital Finance Limited, Dairy Holdings Limited, and Food Holdings Limited, on the one hand, and Parmalat Finanziaria S.p.A. and its affiliates and subsidiaries, under the direction of Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat companies, on the other, agree to further extend the Temporary Restraining Order in the Finance Companies' Section 304 cases until March 15, 2007. Judge Drain will convene a hearing to consider the Liquidators' application for preliminary injunction on March 15, 2007, at 10:00 a.m. Parmalat Finanziaria's time to answer the Petition commencing the ancillary proceedings is extended until April 20. The Joint Official Liquidators have been advised that an appeal from the TRO will be taken to the Privy Council. In 2006, Judge Kaplan stayed all proceedings in In re Parmalat Securities Litigation as to all the parties to discuss settlement. Accordingly, Messrs. Cleaver and MacRae have elected to seek to continue the Temporary Restraining Order in place and not to seek entry of a preliminary injunction at this point. 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 S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. (Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) =================== K A Z A K H S T A N =================== AKJOL CORP: Almaty Court Opens Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against CJSC Corporation Akjol (RNN 600900021866) on Dec. 13, 2006. ASIA COMPANY: Creditors Must File Claims by February 8 ------------------------------------------------------ LLP Asia Company has declared insolvency. Creditors have until Feb. 8 to submit written proofs of claim to: LLP Asia Company Gorky Str. 7a Menovnoye Ust-Kamenogorsk East Kazakhstan Region Kazakhstan ATYRAU BROOD: Proof of Claim Deadline Slated for February 13 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Atyrau Region declared LLP Atyrau Brood Master insolvent. Creditors have until Feb. 13 to submit written proofs of claim to: LLP Atyrau Brood Master Floor 3 Abai Str. 10a Atyrau Atyrau Region Kazakhstan BANK CENTERCREDIT: Moody's Puts Ba1 Rating to Dutch Unit's Notes ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency rating to the senior unsecured notes expected to be issued by CenterCredit International B.V. (Netherlands), a direct wholly owned subsidiary of Kazakhstan's Bank CenterCredit. The issue will be unconditionally and irrevocably guaranteed by BCC. The notes will be issued under 144A rule and denominated in U.S. dollars, while the amount, tenor and the price of the notes will be determined by the market conditions. The outlook on the rating is stable. The Ba1 rating incorporates some degree of potential support from the Kazakh authorities in the event of need, in reflection of BCC's importance to the national banking system as the country's sixth-largest bank in terms of total assets and fourth-largest in terms of retail customer deposits as of end- third quarter 2006, with market shares of 8% and 11.3%, respectively. However, Moody's cautions that any outside support for BCC from the authorities in case of distress might be of a limited nature and its extent and timeliness uncertain. The bank's obligations under the guarantee will rank at least pari passu in right of payment with all other senior unsecured obligations. According to the terms and conditions of the notes, BCC must comply with a number of covenants such as negative pledge, limitations on certain transactions, limitation on payment of dividends and maintenance of a minimum consolidated BIS Capital Adequacy Ratio of 10%, a level which the bank has continuously exceeded during the last several years, but which may be more difficult to achieve under the conditions of rapid asset growth. Moody's notes that, while the likelihood that any of the above-mentioned covenants being breached is relatively low at the present time, any such occurrence could potentially have adverse liquidity implications for the bank, and might exert additional downward pressure on its ratings. Headquartered in Almaty, Kazakhstan, BCC reported under IFRS total consolidated assets of KZT514.5 billion (US$4.04 billion) and total shareholders equity of KZT35.19 billion (US$276.6 million) as of Sept. 30, 2006. BANK CENTERCREDIT: Fitch Assigns Eurobond Long-Term BB- Rating -------------------------------------------------------------- Fitch Ratings assigned CenterCredit International B.V.'s upcoming Eurobond issue an expected Long-term BB- rating. Kazakhstan's Bank CenterCredit rated Long-term BB- with Stable Outlook, Short-term B, Individual D, and Support 3, will unconditionally guarantee the timely and full repayment of the notes in a trust deed between itself and the trustee, Deutsche Trustee Company Limited. The final rating is contingent upon receipt of final documentation conforming materially to information already received. The terms and conditions of the notes specify that the obligations of BCC under the guarantee will rank at least equally with claims of other unsecured creditors of BCC, save those preferred by relevant laws. Under Kazakhstani law, the claims of retail depositors and account holders rank above those of other senior unsecured creditors. At end-September 2006, retail deposits and accounts constituted 19.8% of BCC's total liabilities, according to the bank's reviewed IFRS financial statements. Covenants prevent BCC from entering into transactions of US$7 million or more on other than market terms, restrict dividend payments to 50% of net income, and oblige the bank to maintain a total capital ratio of at least 10%, as calculated in accordance with the Basel Committee's recommendations. The terms and conditions of the notes also contain a cross default clause and a negative pledge clause, the latter of which allows for a degree of securitization by BCC. Should any securitization be undertaken by BCC, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. BCC is one of the six largest banks in Kazakhstan with a market share of assets of around 7.8% at end- September 2006, and focuses primarily on the SME and retail segments, utilizing its countrywide branch network. Bakhtybek Bayseitov, current chairman of the Board of Directors, is now consolidating his 51% stake in the bank; about 12% is owned by management. KASPYDORSERVICE LLP: Creditors' Claims Due February 21 ------------------------------------------------------ LLP Kaspydorservice has declared insolvency. Creditors have until Feb. 21 to submit written proofs of claim to: LLP Kaspydorservice Corps 46a Micro District 28 Aktau Mangistau Region Kazakhstan Tel: 8 (3292) 40-44-46 MARINE INTER SERVICE: Claims Filing Period Ends February 9 ---------------------------------------------------------- LLP Marine Inter Service has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Marine Inter Service Micro District 4, 39-27 Aktau Mangistau Region Kazakhstan POKROVSKOYE LLP: Creditors Must File Claims by February 14 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Agro Firm Pokrovskoye insolvent. Creditors have until Feb. 14 to submit written proofs of claim to: LLP Pokrovskoye Room 40 Tarana Str. 85 Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 54-28-39 SAMALTRANS OJSC: Creditors' Claims Due February 21 -------------------------------------------------- OJSC Samaltrans has declared insolvency. Creditors have until Feb. 21 to submit written proofs of claim to: OJSC Samaltrans Pervomaiskaya Str. 54 Osakarovsky District Karaganda Region Kazakhstan SELSKOHOZAISTVENNAYA STANTSIYA: Claims Registration Ends Feb. 14 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region State Utility Enterprise Lvovskaya Agricultural Station Selskohozaistvennaya Stantsiya declared insolvent. Creditors have until Feb. 14 to submit written proofs of claim to: Selskohozaistvennaya Stantsiya Maiyakovsky Str. 115-47 Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 26-39-17 8 (3143) 49-43-65 SERPIL TRADE: Proof of Claim Deadline Slated for Feb. 9 ------------------------------------------------------- LLP Serpil Trade has declared insolvency. Creditors have until Feb. 9 to submit written proofs of claim to: LLP Serpil Trade Kydyrov Str. 2-9 Kyzylorda Kyzylorda Region Kazakhstan TIMIRAZEVSKOYE LLP: Claims Filing Period Ends February 14 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Timirazevskoye insolvent. Creditors have until Feb. 14 to submit written proofs of claim to: LLP Timirazevskoye Room 40 Tarana Str. 85 Kostanai Kostanai Region Kazakhstan Tel: 8 (3142) 54-28-39 =================== K Y R G Y Z S T A N =================== BAKAI-ATINSKY: Public Auction Scheduled for Jan. 23 --------------------------------------------------- The Chui-Bishkek-Talas Territorial Department of the State Committee on State Property will auction the Bakai-Atinsky Forestry Fruit Storehouse of State Forest Service to the public at 11:00 a.m. on Jan. 23 at: Floor 5 Moskovskaya Str. 172 Bishkek, Kyrgyzstan The Bakai-Atinsky Forestry Fruit Storehouse of State Forest Service is located at: Urmaral Bakai-ata Talas Region Kyrgyzstan The entity has established a KGS561,838 starting price for the property. The conditions of the commercial tender include: -- preposition of the price for the object; -- the volume and terms of proposed investments; -- preservation of the activity profile; -- social program in the field of salary, level of employment; -- increasing of optimal work places; and -- providing the preservation of the environment. All liabilities should have quantitative term and specific period of implementation. The winner of the commercial tender is the obligatory person who proposed the highest price for the object of privatization, exposed to the tender. Information on Bakai-Atinsky Forestry Fruit Storehouse as of Sept. 1, 2006: * main activity: forestry * condition of immovable property: satisfactory * area of land: 0.27 hectares Interested bidders have until 5:00 p.m. on Jan. 22 to deposit an amount equivalent to 10% of the starting price to the settlement account of: Chui-Bishkek-Talas Territorial Department of the State Committee on State Property Settlement Account No.1020002080100155 Leninsky ROK Lenin Branch of OJSC Kyrgyzpromstroybank in Bishkek MFO 102002 Personal Account No.205802605 and submit their bids and necessary documents at: Room 1 Floor 5 Moskovskaya Str. 172 Bishkek, Kyrgyzstan The winner of the auction will pay 7% from the selling price of the object. Inquiries can be addressed to (+996 312) 21-87-34, (+996 3422) 5-28-54. =================== L U X E M B O U R G =================== DANA CORP: DCC Finalizes Forbearance Agreement with Noteholders --------------------------------------------------------------- Dana Corp. and non-debtor Dana Credit Corp. finalized and executed on Dec. 18, 2006, a Settlement Agreement, which resolves certain intercompany claims. On the same date, DCC and the holders of approximately 95% of the outstanding principal amount of the DCC Notes finalized and executed a Forbearance Agreement. Taken together, the Settlement and Forbearance Agreements provide, among other things, that: (a) the Forbearing Noteholders will forbear from exercising their rights or remedies under any of the DCC Note documents or applicable law for a period of 24 months during which DCC will endeavor to sell its remaining portfolio assets in an orderly manner and will use the proceeds to pay down the DCC Notes; (b) the Forbearing Noteholders release the Debtors from all claims they may have against the Debtors; (c) DCC will have an allowed general unsecured claim for US$325,000,000 against Dana Corp. in exchange for DCC's release of all other claims it may have against the Debtors that arose before the effective date of the Settlement Agreement; (d) until the effective date of a plan of reorganization, DCC will provide the Ad Hoc Committee of DCC Noteholders, the Official Committee of Unsecured Creditors, the Official Committee of Equity Security Holders and the Official Committee of Non-Union Retirees with notice and opportunity to object before any sale or transfer of the Intercompany Claim to a third party; (e) the applicable Debtors will make timely cash payments to the applicable DCC entities of all rental or other amounts that become due after the effective date of the Settlement Agreement under any lease of real or personal Property between them, net of any amounts owed by the DCC entities to the Debtors; (f) DCC consents to the release to Dana Corp. of the currently escrowed proceeds from the sale of certain real estate properties and waives any right to receive any portion of the proceeds from the escrow accounts; and (g) the time for the Debtors to assume or reject unexpired leases of non-residential real property between the Debtors, as lessees, and DCC, as lessor, is extended until the date of entry of an order confirming a plan. A full-text copy of the DCC Settlement and Forbearance Agreements is available for free at http://bankrupt.com/misc/dana_dccsettlement&forbearance.pdf In a regulatory filing with the U.S. Securities and Exchange Commission, Michael L. DeBacker, vice president, general counsel and secretary of Dana Corp., related that DCC intended to pay approximately US$155,000,000 to the Forbearing Noteholders on Dec. 28, 2006. The amount includes a principal payment of approximately US$125,000,000, thereby reducing DCC's current outstanding debt from US$392,000,000 to US$267,000,000. Holders of DCC Notes who have not signed the Forbearance Agreement may obtain information about becoming Forbearing Noteholders by contacting counsel for the Ad Hoc Committee: Matthew Cantor, Esq. Kirkland & Ellis, LLP 153 East 53rd Street New York, New York 10022 Tel. No.: 212-446-4846 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: Completes Asset Sale to Hendrickson USA for US$31 Mln ---------------------------------------------------------------- Dana Corp. and its subsidiary, Dana Canada Corp., completed the sale of their trailer axle manufacturing assets to Hendrickson USA, L.L.C., a subsidiary of The Boler Company, and its affiliates. The U.S. and Canadian assets, which include trailer axle production equipment, inventory, and related assets at facilities in Lugoff, S.C., USA, and Barrie, Ontario, Canada, were sold for a combined US$31 million, subject to inventory adjustments at closing. Additionally, a Chinese affiliate of Hendrickson has established a US$2 million escrow for the purchase of certain trailer axle production equipment, inventory and related assets from Dana's Chinese subsidiary Dana (Wuxi) Technology Co. Ltd. Dana expects that the sale of the Wuxi assets will close in the first quarter of 2007. "The sale of the trailer axle assets enables Dana's Commercial Vehicle group to concentrate its resources on its core products and competencies -- drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles," Dana Heavy Vehicle Products President Nick Stanage said. In conjunction with these transactions, Bendix Spicer Commercial Vehicle Foundation Brake LLC, a joint venture in which Dana has an interest, has entered into an agreement to supply certain of Hendrickson's requirements for Bendix(R) brake products and systems through 2013. 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: Unions to Appeal Judge Lifland's Officers' Pay Order --------------------------------------------------------------- The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union notify the U.S. Bankruptcy Court for the Southern District of New York that they will take an appeal to the U.S. District Court for the Southern District of New York from Judge Burton Lifland's order approving the employment agreements of Michael Burns and other Senior Executives and the long-term incentive plan. 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). ===================== N E T H E R L A N D S ===================== CENTERCREDIT INT'L: Moody's Puts Ba1 Rating to BCC Senior Notes --------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency rating to the senior unsecured notes expected to be issued by CenterCredit International B.V. (Netherlands), a direct wholly-owned subsidiary of Kazakhstan's Bank CenterCredit The issue will be unconditionally and irrevocably guaranteed by BCC. The notes will be issued under 144A rule and denominated in U.S. dollars, while the amount, tenor and the price of the notes will be determined by the market conditions. The outlook on the rating is stable. The Ba1 rating incorporates some degree of potential support from the Kazakh authorities in the event of need, in reflection of BCC's importance to the national banking system as the country's sixth-largest bank in terms of total assets and fourth-largest in terms of retail customer deposits as of end- third quarter 2006, with market shares of 8% and 11.3%, respectively. However, Moody's cautions that any outside support for BCC from the authorities in case of distress might be of a limited nature and its extent and timeliness uncertain. The bank's obligations under the guarantee will rank at least pari passu in right of payment with all other senior unsecured obligations. According to the terms and conditions of the notes, BCC must comply with a number of covenants such as negative pledge, limitations on certain transactions, limitation on payment of dividends and maintenance of a minimum consolidated BIS Capital Adequacy Ratio of 10%, a level which the bank has continuously exceeded during the last several years, but which may be more difficult to achieve under the conditions of rapid asset growth. Moody's notes that, while the likelihood that any of the above-mentioned covenants being breached is relatively low at the present time, any such occurrence could potentially have adverse liquidity implications for the bank, and might exert additional downward pressure on its ratings. Headquartered in Almaty, Kazakhstan, BCC reported under IFRS total consolidated assets of KZT514.5 billion (US$4.04 billion) and total shareholders equity of KZT35.19 billion (US$276.6 million) as of Sept. 30, 2006. CENTERCREDIT INT'L: Fitch Assigns Eurobond Long-term BB- Rating --------------------------------------------------------------- Fitch Ratings assigned CenterCredit International B.V.'s upcoming Eurobond issue an expected Long-term BB- rating. Kazakhstan's Bank CenterCredit rated Long-term BB- with Stable Outlook, Short-term B, Individual D, and Support 3, will unconditionally guarantee the timely and full repayment of the notes in a trust deed between itself and the trustee, Deutsche Trustee Company Limited. The final rating is contingent upon receipt of final documentation conforming materially to information already received. The terms and conditions of the notes specify that the obligations of BCC under the guarantee will rank at least equally with claims of other unsecured creditors of BCC, save those preferred by relevant laws. Under Kazakhstani law, the claims of retail depositors and account holders rank above those of other senior unsecured creditors. At end-September 2006, retail deposits and accounts constituted 19.8% of BCC's total liabilities, according to the bank's reviewed IFRS financial statements. Covenants prevent BCC from entering into transactions of US$7 million or more on other than market terms, restrict dividend payments to 50% of net income, and oblige the bank to maintain a total capital ratio of at least 10%, as calculated in accordance with the Basel Committee's recommendations. The terms and conditions of the notes also contain a cross default clause and a negative pledge clause, the latter of which allows for a degree of securitization by BCC. Should any securitization be undertaken by BCC, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. BCC is one of the six largest banks in Kazakhstan with a market share of assets of around 7.8% at end- September 2006, and focuses primarily on the SME and retail segments, utilizing its countrywide branch network. Bakhtybek Bayseitov, current chairman of the Board of Directors, is now consolidating his 51% stake in the bank; about 12% is owned by management. GTB Finance: Fitch Rates Upcoming Debt Issue at B+/RR4 ------------------------------------------------------ Fitch Ratings assigned Netherlands-based GTB Finance BV's upcoming issue of guaranteed unsecured unsubordinated callable notes an expected Issuer Default rating of B+ and an expected Recovery Rating of RR4. The expected Recovery Rating for the issue is in accordance with Fitch's soft cap for Nigeria. At the same time Fitch affirmed the ratings of Guaranty Trust Bank Plc as presented below. The final rating is contingent on the receipt of final documents conforming to information already received. GTB Finance BV is a wholly owned subsidiary of GTB, and was incorporated to raise funds in the international capital markets for GTB and its subsidiaries. The notes will be unconditionally and irrevocably guaranteed by GTB. The notes will be U.S. dollar-denominated and are expected to have a term to maturity of five years. The notes have a call and put option in favour of GTB Finance BV and the note holder respectively, and the ability to exercise the call and put option is dependent on a change in tax legislation in the relevant jurisdictions or a change in shareholding of the guarantor. The proceeds of the notes will be used for general funding purposes. The ratings on GTB reflect Nigeria's difficult operating environment and GTB's concentrated loan book. They also reflect the bank's well-established domestic franchise, strong financial performance, and sound asset quality. For the six months to August 31, 2006, GTB reported a net profit after tax of NGN4.8 billion. GTB is a Nigerian-listed commercial bank that began operating in 1990. GTB's banking activities include loans, deposit taking, guarantees and letters of credit, money market activities, and foreign operations. Ratings are affirmed: * GTB -- Foreign currency Issuer Default rating affirmed at B+ with a Stable Outlook; -- Short-term foreign currency affirmed at B; -- National Long-term affirmed at AA- with a Stable Outlook; -- National Short-term affirmed at F1+; -- Individual affirmed at D; and -- Support affirmed at 4. =========== R U S S I A =========== BELGORODSKIY FACTORY: Assets Sale Slated for Jan. 23 ---------------------------------------------------- Gsu Fund of State Property of Belgorod Region, the bidding organizer for OJSC Belgorodskiy Factory of Reinforced-Concrete Constructions-1, will open a public auction at 11:00 a.m. on Jan. 23 at: Gsu Fund of State Property of Belgorod Region Room 216 2nd floor Nekrasova Str. 9/15 308007 Belgorod Region Russia The case is docketed under Case No. A08-16562/04-24 B. Interested participants have until Jan. 17 to deposit an amount equivalent to 20% of the starting price to: OJSC Belgorodskiy Factory Of Reinforced-Concrete Constructions-1 Settlement Account 40602810416020000052 CB Vnezhtorgbank, branch in Belgorod BIK 041403757 TIN 3124012318 KPP 312301001 Correspondent Account 3010181040000000757 Bidding documents must be submitted to: Gsu Fund of State Property of Belgorod Region Room 216 2nd floor Nekrasova Str. 9/15 308007 Belgorod Region Russia The Debtor can be reached at: OJSC Belgorodskiy Factory of Reinforced-Concrete Constructions-1 Belgorod Region Russia BUILDER LLC: Kaluga Court Names V. Yunin as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kaluga Region appointed Mr. V. Yunin as Insolvency Manager for LLC Kaluzhskaya Building Company Builder. He can be reached at: V. Yunin Mayakovskogo Str. 17 248009 Kaluga Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A23-4083/06B-8-302. The Arbitration Court of Kaluga Region is located at: Staryj Torg Square 4 Kaluga Region Russia The Debtor can be reached at: LLC Kaluzhskaya Building Company Builder Mstikhino Kaluga Region Russia GOR-ENERGO OJSC: Creditors Must File Claims by Feb. 16 ------------------------------------------------------ Creditors OJSC Gor-Energo have until Feb. 16 to submit written proofs of claim to: E. Pozhidaev, Insolvency Manager Office 18 Kuleva Str. 33 634034 Tomsk Region Russia The Arbitration Court of Tomsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-2844/04. The Debtor can be reached at: OJSC Gor-Energo Office 1 Vodyanaya Str. 80 Tomsk Region Russia IRKUTSKIY COMBINE: Court Names S. Ivasyuk as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Irkutsk Region appointed Mr. S. Ivasyuk as Insolvency Manager for OJSC Irkutskiy Combine of Grain Products. He can be reached at: S. Ivasyuk Post User Box 74 664046 Irkutsk Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-20579/03-29. The Arbitration Court of Irkutsk Region is located at: Room 303 Gagarina Avenue 70 664025 Irkutsk Region Russia The Debtor can be reached at: OJSC Irkutskiy Combine of Grain Products Polyarnaya Str. 85 664014 Irkutsk Region Russia KHANSA-TRANS CJSC: Court Names G. Rabina as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Ms. G. Rabina as Insolvency Manager for CJSC Khansa- Trans (TIN 4718004739). She can be reached at: G. Rabina Post User Box 146 OPS 17 Mira Str. 23 600017 Vladimir Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-36184/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Khansa-Trans Apartment 112 Rubezhnaya Str. 36 Vyborg Leningrad Region Russia KONAKOVSKIY FAIENCE: Court Names P. Tarasov to Manage Assets ------------------------------------------------------------ The Arbitration Court of Tver Region appointed Mr. P. Tarasov as Insolvency Manager for OJSC Konakovskiy Faience Factory. He can be reached at: P. Tarasov Post User Box 19 OPS-100 Tver Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A66-8027/2006. The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: OJSC Konakovskiy Faience Factory Kalinina Square 3 Konakovo Tver Region Russia KURGAN-WOOD-TOP-PROM OJSC: Court Starts Bankruptcy Proceedings -------------------------------------------------------------- The Arbitration Court of Kurgan Region commenced bankruptcy supervision procedure on OJSC Kurgan-Wood-Top-Prom. The case is docketed under Case No. A34-3274/06. The Temporary Insolvency Manager is: K. Zelyutin Post User Box 366 620014 Ekaterinburg Russia The Debtor can be reached at: OJSC Kurgan-Wood-Top-Prom Omskaya Str. 179 Kurgan Region Russia LOES CJSC: Pskov Court Names P. Kapkin as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Pskov Region appointed Mr. P. Kapkin as Insolvency Manager for CJSC Loes. He can be reached at: P. Kapkin Apartment 18 Yubileynaya Str. 87A 180016 Pskov Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A52-3726/2006/4. The Arbitration Court of Pskov Region is located at: Nekrasova Str. 23 Pskov Russia The Debtor can be reached at: CJSC Loes Evlentyeva Str. 1 Pskov Region Russia MICRO-EL-TEKH CJSC: Moscow Bankruptcy Hearing Slated for May 15 --------------------------------------------------------------- The Arbitration Court of Moscow will convene at 11:00 a.m. on May 15 to hear the bankruptcy supervision procedure on CJSC Micro-El-Tekh (TIN 7735025646). The case is docketed under Case No. A40-68076/06-86-1120 B. The Temporary Insolvency Manager is: Y. Safonov Post User Box 40 109652 Moscow Region Russia Tel: 8-916-444-90-75 The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Micro-El-Tekh Sherbakovskaya Str. 53 105187 Moscow Region Russia NORTH AIR: Moscow Court Names A. Fomin as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Moscow Region appointed Mr. A. Fomin as Insolvency Manager for CJSC Air Company North Air. He can be reached at: A. Fomin Mira Pr. 101 V 129085 Moscow Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-65657/05-86-145 B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Air Company North Air Mira Pr., 57 129110 103001 Moscow Region Russia SEL-KHOZ-TEKHNIKA: Omsk Court Starts Bankruptcy Process ------------------------------------------------------- The Arbitration Court of Omsk Region commenced bankruptcy supervision procedure on OJSC Sel-Khoz-Tekhnika Isilkulskaya (TIN 5514002171). The case is docketed under Case No. A46-18349/2006. The Temporary Insolvency Manager is: S. Lepsshonkov Room 27 Internatsionalnaya Strlk 14 644099 Omsk Region Russia The Debtor can be reached at: OJSC Sel-Khoz-Tekhnika Isilkulskaya Leningradskaya Str. 51 Isilkul 646020 Omsk Region Russia SEVERSTAL OAO: Directors Buy 30,000 Global Depositary Receipts -------------------------------------------------------------- Following its corporate policy of maximum transparency and the best market practices, OAO Severstal disclosed that Mr. Chris Clark, the Non-executive Chairman of the Board, bought 20,000 GDRs of Severstal at a market price on Jan. 4. Mr. Ron Freeman, the Non-executive Independent Director, bought 10,000 GDRs of Severstal at a market price on Jan. 5. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. As of June 30, 2006, Severstal had US14.04 billion in total assets, US$4.89 billion in total liabilities and US$9.15 billion in total shareholders' equity. For the first nine months of 2006, Severstal posted a 7.4% year- on-year slide in net profits to RUR23.5 billion, against a 6.3% year-on-year hike in revenues to RUR113.59 billion. * * * As reported in the TCR-Europe on July 5, 2006, Standard & Poor's Ratings Services kept its 'B+' long-term corporate credit rating on Russian steelmaker OAO Severstal on CreditWatch with positive implications following the consolidation of the company's mining assets. The rating was placed on CreditWatch on May 26, following the announcement of a previously agreed merger between Severstal and Luxembourg-based steelmaker Arcelor S.A. This merger was cancelled on June 30. As reported in the TCR-Europe on June 28, 2006, Fitch Ratings maintained the Rating Watch Positive status for OAO Severstal's ratings of Issuer Default BB-, senior unsecured BB-, Short-term B and National Long-term A+. Severstal, which raised just over US$1 billion placing shares in London, plans to acquire more assets on the way to becoming the world's second-largest steel maker, its 41-year-old billionaire owner, Alexei Mordashov, has said. TBILISSKIY SEED: Bankruptcy Hearing Slated for March 23 ------------------------------------------------------- The Arbitration Court of Krasnodar Region will convene on March 23 to hear the bankruptcy supervision procedure on OJSC Tbilisskiy Seed Factory (TIN 2351004689). The case is docketed under Case No. A-32-24406/2006-46/2325 B. The Temporary Insolvency Manager is: A. Pavlov Room 307 Kolkhoznaya Str. 3 350042 Krasnodar Region Russia Tel: (861) 275-89-30 The Arbitration Court of Krasnodar Region is located at: Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Tbilisskiy Seed Factory Tbilisskaya St. Tbilisskiy Region Krasnodar Region Russia VOLGOGRADSKIY OJSC: Court Names E. Slushkin to Manage Assets ------------------------------------------------------------ The Arbitration Court of Volgograd Region appointed Mr. E. Slushkin as Insolvency Manager for OJSC Diary Volgogradskiy. He can be reached at: E. Slushkin Post User Box 1034 400105 Volgograd Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-11128/06-s5. The Debtor can be reached at: OJSC Diary Volgogradskiy Raboche-Krestyanskaya Str. 44 400074 Volgograd Region Russia ZARECHENSKIY WOOD-PROM-KHOZ: Names G. Rabina to Manage Assets ------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Ms. G. Rabina as Insolvency Manager for CJSC Zarechenskiy Wood-Prom-Khoz (TIN 4718004739). She can be reached at: G. Rabina Post User Box 146 OPS 17 Mira Str. 23 600017 Vladimir Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-15829/2006. The Arbitration Court of St. Petersburg and the Leningrad Region is located at: Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Zarechenskiy Wood-Prom-Khoz Berezhki Volkhovskiy Region 187404 Leningrad Region Russia ZELENOKUMSKIY BRICKWORKS 1: Names T. Magomedov to Manage Assets --------------------------------------------------------------- The Arbitration Court of Stavropol Region appointed Mr. T. Magomedov as Insolvency Manager for LLC Zelenokumskiy Brickworks 1. He can be reached at: T. Magomedov Lenina Str., 431 355029 Stavropol Region Russia Tel: (8652) 950-036 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-2373/05S5. The Arbitration Court of Stavropol Region is located at: Mira Str. 458 b Stavropol Region Russia The Debtor can be reached at: LLC Zelenokumskiy Brickworks 1 Pervomayskaya Str. 135 Zelenokumsk Stavropol Region Russia * European Commission Probes into Russia-Belarus Gas Dispute ------------------------------------------------------------ At the request of Commissioner Andris Piebalgs, the Gas Coordination Group met to assess the reliability of gas supply through Belarus after the last-minute agreement signed between Gazprom and Belarus on Dec. 31, 2006. The Group assessed the agreement positively and stressed the importance of a consolidated and stable multi-annual agreement to secure gas transit through Belarus. For the first time a Belarussian representative was invited to the meeting "A secure and predictable energy supply is a must for European economy and a right for European citizens," said Commissioner Piebalgs. Security of energy supply is one of the key elements of the European Energy Policy that the Commission is going to present on 10 January." H.E. Vladimir Senko, Ambassador, Head of Mission of Belarus to the European Union, presented the main outline of the agreement from the Belarussian perspective. The Group also reviewed the measures that were taken by the Member States most concerned in case of a temporary supply disruption. In the context of a mild winter and considering the current situation of storage and gas flows, the measures taken by the Member States were considered appropriate to ensure security of supply. After the crisis concerning transit through Ukraine last year, the threats made to security of supply during the recent Russian-Belarus gas dispute clearly emphasized the need for strong cooperation between Member States. About 20% of Russian gas imports in the EU transit through Belarus, mainly to Poland, Germany and Lithuania. The Gas Coordination Group was established by a 2004 Directive dealing with measures to safeguard security of natural gas supply. It is chaired by the European Commission and composed of representatives of Member States, representative bodies of the industry concerned and of relevant consumers. * Fitch Says Russian Oil Supply to Central Europe Less Reliable --------------------------------------------------------------- Fitch Ratings says recent disruptions in crude oil supply via the Druzhba pipeline from Russia across Belarus to Poland and Germany indicate that supplies of Russian crude oil to Central Europe have become less reliable. Belarus has reduced the amount of Russian crude oil supply in transit to Poland and Germany. This is likely to be related to the dispute between Russia and Belarus over the excise tax and transit duty on Russian oil. "Belarus is an important transit country for Russian crude oil to CE given that all three sections of the Druzhba pipeline pass through it," says Arkadiusz Wicik, Associate Director in Fitch's Energy team. So far only the supplies to Poland and Germany have been halted as reported by the Polish crude oil transportation company PERN "Przyjazn" S.A that operates the Polish part of the Druzhba pipeline. However, there may also have been supply disruptions to refineries in Ukraine, Slovakia, the Czech Republic, and Hungary. The crude oil disruptions news came as a surprise given the lack of significant disruptions of crude oil to Poland's PKN Orlen S.A. or Hungary's MOL in the past 10 years. As Fitch notes in its previous reports refineries in the CE region are highly reliant on supplies of oil and gas from Russia. Pipeline deliveries from Russia meet most of the crude oil demand in regional refineries, for example to PKN Orlen S.A., Grupa Lotos S.A., MOL's refineries in Hungary and Slovakia, and Lithuania's Mazeikiu Nafta AB. Nevertheless, Fitch views that the recent supply disruptions do not currently warrant a negative rating action for CE refineries given the obligatory inventory of crude oil and fuels in European Union countries in the CE region. In addition, CE refineries have alternative routes of supplies. However, if supplies are not resumed in the long run, Fitch may review the ratings, as a deficit in pipeline supplies from Russia would have to be met with seaborne imports of Russian crude oil, resulting in additional transportation costs or more expensive crude oil from the North Sea or the Middle East. Such a scenario would considerably affect CE refiners' margins, which are currently some of the highest in Europe thanks to a steep discount of Russian Export Blend crude oil to Brent. ========= S P A I N ========= BANCAJA 10: S&P Junks EUR31.5-Million Class E Notes --------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR2.6-billion mortgage-backed floating- rate notes and EUR31.5-million floating-rate notes to be issued by Bancaja 10, Fondo de Titulizacion de Activos, a special purpose entity. The notes are backed by first-lien mortgage loans for residential properties in Spain. The originator is Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja), the third-largest savings bank in Spain and the sixth leading financial institution in the country. This is its 10th RMBS securitization. The ratings on the notes reflect class subordination, the reserve fund, the presence of the interest rate swap, comfort provided by various other contracts, and the rating on Bancaja. This transaction is similar to previous Bancaja RMBS transactions, both in terms of the structure and the characteristics of the collateral backing the notes. As in other Spanish transactions, interest and principal are combined into a single priority of payments, with triggers in the payment of the interest of subordinated notes to protect the senior class. Ratings List Bancaja 10, Fondo de Titulizacion de Activos EUR2.6-Billion Mortgage-Backed Floating-Rate Notes and EUR31.5-Million Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------ ------ A1 AAA 420 A2 AAA 1,537 A3 AAA 500 B A 65 C BBB 52 D BB 26 E(1) CCC- 31.5 (1) The class E notes will be used to fund the reserve fund. However, this amount is preliminary and may change at closing. LADBROKES PLC: Inks Joint Venture Deal with Cirsa Slot ------------------------------------------------------ Ladbrokes PLC and Cirsa Slot Corporation SL have established a 50:50 joint venture company to develop a sports betting business in Spain. The JV will combine Ladbrokes, the world's biggest bookmaker, with operations in the U.K., Ireland, Belgium and Italy with Cirsa Slot, the leading slot machine company in Spain. Cirsa Slot accounts for 9% of the Spanish slot machine market, servicing over 15,000 food and beverage outlets with gaming areas and 90 arcades. The company is a division of CIRSA Corporation, which owns and operates casinos, arcades and bingo halls throughout the country. The JV company will apply for the new betting licenses being offered in Madrid where a new decree was passed in December 2006 regulating dedicated betting shops, non-dedicated betting kiosks (bars, arcades and bingo halls) and remote betting (telephone and Internet) for the first time. Applications for the licenses, which initially last five years, but are renewable, will be submitted to the Madrid regional government when requested, likely to be by mid-January. The JV will also work to secure betting licenses in other areas of Spain that are also considering regulating betting for the first time. Several of the other 16 regions of Spain are believed to be actively considering similar betting regulation. The Spanish gambling market was worth around EUR29 billion last year. Christopher Bell, Chief Executive of Ladbrokes plc commented: "This represents another major step forward in our international aspirations. In December we opened our first shops in Italy and successfully tendered for new licenses. Now we have formed a JV with a market leader in Spain that gives us access to a network of thousands of potential site operators. As soon as regulation allows we are confident that the combination of Ladbrokes' vast experience and expertise in betting and the local knowledge and operational capability of Cirsa will build a strong business in Spain." Pablo Alcala, Director of Cirsa Slot commented: "Sports betting is set to become an increasingly mainstream activity in Spain and we believe that this Joint Venture builds on the strengths of both companies -- Ladbrokes with over 100 years experience in betting and Cirsa with its massive presence in the Spanish market." About Ladbrokes Headquartered in Watford, United Kingdom, Ladbrokes plc -- http://www.ladbrokesplc.com/-- engages in fixed odds betting. The company is comprised of Ladbrokes, the biggest retail bookmaker in the U.K. and Ireland, Ladbrokes.com, a world- leading provider of interactive betting and gaming services, Vernons, the leading football pools operator and Ladbrokes Casinos, which opened its first casino at the Hilton London Paddington in July 2006. * * * As reported in the TCR-Europe on Oct. 26, Standard & Poor's Ratings Services affirmed its 'BB' ratings on the senior unsecured debt of U.K.-based gaming operator Ladbrokes PLC and its guaranteed subsidiary Ladbrokes Group Finance PLC, and removed the ratings from CreditWatch with negative implications. Moody's Investors Service downgraded in February the senior unsecured long-term ratings of Hilton Group Plc (nka Ladbrokes Plc) and its guaranteed subsidiaries to Ba2 from Baa3; the outlook is stable. ===================== S W I T Z E R L A N D ===================== BURO LEUENBERGER: Schaffhausen Court Closes Bankruptcy Process -------------------------------------------------------------- The Bankruptcy Court of Schaffhausen entered Nov. 14, 2006, an order closing the bankruptcy proceedings of LLC Buro Leuenberger. The Debtor can be reached at: LLC Buro Leuenberger Hauptstrasse 40 8224 L�hningen Switzerland The Bankruptcy Service of Schaffhausen can be reached at: Bankruptcy Service of Schaffhausen 8201 Schaffhausen Switzerland DUSS FREDY: Lucerne Court Suspends Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of Lucerne-Land suspended the bankruptcy proceedings of JSC Duss Fredy Architektur on Dec. 4, 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 Oct. 6, 2006, can be reached at: JSC Duss Fredy Architektur Grubenstrasse 7 6014 Littau Switzerland The Bankruptcy Service of Lucerne-Land can be reached at: Bankruptcy Service of Lucerne-Land 6011 Kriens Switzerland HSR SOLUTIONS: Zurich Court Suspends Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Fluntern-Zurich suspended the bankruptcy proceedings of LLC HSR Solutions 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 CHF4,500 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Nov. 1, 2006, can be reached at: LLC HSR Solutions Hadlaubstrasse 154 8006 Zurich Switzerland The Bankruptcy Service of Fluntern-Zurich can be reached at: Bankruptcy Service of Fluntern-Zurich 8032 Zurich Switzerland K4-HOLDING: Schaffhausen Court Suspends Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Court of Schaffhausen suspended the bankruptcy proceedings of JSC K4-Holding on Dec. 4, 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 July 7, 2006, can be reached at: JSC K4-Holding (in liquidation) Schlossstrasse 85 8207 Schaffhausen Switzerland The Bankruptcy Service of Schaffhausen can be reached at: Bankruptcy Service of Schaffhausen 8201 Schaffhausen Switzerland MIE - LASER: Dubendorf Court Suspends Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Court of Dubendorf suspended the bankruptcy proceedings of JSC MIE - Laser & Electronics 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 CHF3,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Sept. 6, 2006, can be reached at: JSC MIE - Laser & Electronics Holzliwisenstrasse 5 8604 Volketswil Switzerland The Bankruptcy Service of Dubendorf can be reached at: Bankruptcy Service of Dubendorf 8600 Dubendorf 2 Switzerland PROFARM JSC: St. Gallen Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of St. Gallen commenced bankruptcy proceedings against JSC Profarm on Nov. 23, 2006. The Debtor can be reached at: JSC Profarm Rorschacherstrasse 15 9450 Altstatten Switzerland The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Office Buchs Leila Spirig-Hayoz 9471 Buchs Switzerland RESTEM LLC: Zurich Court Suspends Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Court of Oerlikon-Zurich suspended the bankruptcy proceedings of LLC Restem 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 CHF4,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Oct. 17, 2006, can be reached at: LLC Restem Ueberlandstrasse 377 8051 Zurich Switzerland The Bankruptcy Service of Oerlikon-Zurich can be reached at: Bankruptcy Service of Oerlikon-Zurich 8050 Zurich Switzerland SWISSINTER JSC: Wetzikon Court Suspends Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Court of Wetzikon-Zurich suspended the bankruptcy proceedings of JSC swissinter 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 Oct. 11, 2006, can be reached at: JSC swissinter Im Tobel 5, Hadlikon 8340 Hinwil Switzerland The Bankruptcy Service of Wetzikon-Zurich can be reached at: Bankruptcy Service of Wetzikon-Zurich 8622 Wetzikon-Zurich Switzerland ZELIN LLC: Zurich Court Suspends Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Aussersihl-Zurich suspended the bankruptcy proceedings of LLC Zelin 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 CHF3,500 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Oct. 18, 2006, can be reached at: LLC Zelin Motorenstrasse 25 8005 Zurich Switzerland The Bankruptcy Service of Aussersihl-Zurich can be reached at: Bankruptcy Service of Aussersihl-Zurich 8026 Zurich Switzerland ZHB AC: Schaffhausen Court Suspends Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Schaffhausen suspended the bankruptcy proceedings of LLC ZHB AC on Dec. 4, 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 Sept. 1, 2006, can be reached at: LLC ZHB AC Alte Zollstrasse 12 8260 Stein am Rhein Switzerland The Bankruptcy Service of Schaffhausen can be reached at: Bankruptcy Service of Schaffhausen 8201 Schaffhausen Switzerland =========== T U R K E Y =========== DOGAN YAYIN: Subsidiary Acquires Trader Media for US$500 Million ---------------------------------------------------------------- Hurriyet Gazetecilik ve Matbaacylyk A.S. disclosed a recommended voluntary offer to acquire 100% of Trader Media East Ltd. for US$500 million in cash. Hurriyet, a subsidiary of Dogan Yayin Holding, has a leading position in the Turkish media sector. With this potential acquisition, Hurriyet will be one of the largest providers of online and offline classified advertising. Moreover, this will give Hurriyet access to high growth regions of Central & Eastern Europe, especially Russia and CIS. TME is a provider of print and online classified advertising in the Russia, CIS, Baltics and Eastern Europe region. "Hurriyet's leading position in the Turkish classified advertising market, combined with TME's leading position in high-growth markets in the Russian, CIS, Baltics and Eastern European region will create one of the largest classified advertising groups in the world," Vuslat Dogan Sabancy, Hurriyet's CEO disclosed. "Following the Offer, approximately 35% of the H�rriyet group's overall revenues will come from outside Turkey. The Offer is an important step towards Dogan Yayin's stated strategy of becoming a major international force. I believe our offer to TME Shareholders is at an attractive value and will be received positively," Mr. Sabancy added. TME shares were offered to public in February 2006 for US$13 per share. The company's 2005 consolidated net revenues were US$197.9 million and consolidated EBITDA was US$64.9 million. About TME Headquartered in Netherlands, Trader Media East Ltd. -- http://www.tmeast.com/-- is an online and print classified advertising provider with strong local brands serving local markets in Central and Eastern Europe. It has operations in Russia, Poland, Hungary, Croatia, Ukraine, Kazakhstan, Belarus and Lithuania. TME has strong local brands in print and online classified market. Some of TME's important brands among its 256 print titles are Iz Ruk v Ruki and Aviso in Russia & CIS; Szuperinfo and Expressz in Hungary, Oglasnik in Crotia; AutoBit in Poland. With a total of 50,000,000 GDRs, TME is traded on London Stock Exchange. Over the three months ending Dec. 19, 2006, the GDRs had a volume weighted average closing price of US$8.10 while Hurriyet's offer is US$10.00. TME's closing share price was US$7.80 as of Dec. 19, 2006. About Hurriyet Headquartered in Turkey, Hurriyet Gazetecilik ve Matbaacylyk A.S. is the flagship subsidiary of Dogan Yayin Holding and is the leading publishing house in Turkey. The company publishes four national newspapers, operates five online news and classified portals, and owns eight printing facilities. It has 1,900 employees. As of Financial Year 2005, Hurriyet has posted US$436 million revenues and US$120 million EBITDA. Hurriyet is listed on Istanbul Stock Exchange with 40% free float and over 90% of its free float is held by foreign institutional shareholders. The company is trading at a market capitalization of around US$1.1 billion. About Dogan Yayin Holding DYH -- http://www.dmg.com.tr/-- has a market-leading position in the Turkish market through its operations in newspapers and magazine publishing, television and radio broadcasting, printing and new media with total consolidated revenues and EBITDA of US$1.3 billion and US$153 million respectively for Financial Year 2005. With approximately 7,000 employees, DYH is uniquely positioned in different segments of media, with an estimated 42% share of the total advertising market in Turkey. DYH is listed on Istanbul Stock Exchange, with a 34% free float. DOGAN YAYIN: Fitch Affirms Issuer Default Ratings at B+ ------------------------------------------------------- Fitch Ratings affirmed Turkey-based Dogan Yayin Holding's local and foreign currency Issuer Default ratings at B+. The Outlooks remain Positive. DYH has no issues outstanding as of January. The rating action follows DYH's flagship subsidiary Hurriyet's recent announcement of a conditional offer to acquire up to 100% of Trader Media East Limited's issued share capital at US$10 per share for an implied valuation of US$500 million. Fitch notes that Hurriyet may become highly leveraged as a result of this transaction affecting the net consolidated leverage level at the holding company level. However, Fitch does not expect DYH to leverage beyond the management's target net debt/EBITDA of 2x even under the worst-case scenario. Fitch factors in cash inflow from the sale of a 25% stake in Dogan TV as a mitigating factor for possible reduced upstream cash flow from Hurriyet. Fitch sees Hurriyet's offer as an important step towards the media group's aspirations for regional growth in Russia, the CIS, and Eastern Europe. Fitch acknowledges the strategic benefits that the Star TV acquisition has provided to the DYH group, with meaningful cash flow contribution from Star TV in 2006 following the completion of the channel's integration with Dogan TV. Broadcasting EBITDA was up significantly year on year in nine months ended Fiscal Year 2006 at US$31.9 million with EBITDA margin expanding to 12% from 7%. This reinforces Fitch's view that the cost-cutting measures in the broadcasting segment have started to bear fruit, due to additional economies of scale with the integration of Star TV. As at Fiscal Year 2006, gross debt at DYH was US$425 million, which mainly financed the acquisition of Star TV in 2005. DYH signed in November 2006 a share purchase agreement with Axel Springer on the 25% stake sale in Dogan TV for EUR375 million, implying a total equity valuation of EUR1,500 million for the broadcasting asset. As a result of this transaction, DYH is expected to post a net consolidated cash position as of end- 2006, which is a major improvement from the net consolidated leverage-to-annualized EBITDA of 2.5x at first quarter ended 2006. Fitch expects DYH to carry the proceeds from the 25% stake sale of Dogan TV on its consolidated balance sheet, lessening the impact of any leveraging attempt by Hurriyet. As a holding company, DYH depends on dividend flows, service income, and capital gains. DYH defined its dividend policy initially in Fiscal Year 2003, stating that its publicly quoted companies would distribute 50% of distributable income. Fitch's ratings reflect the dividend flow from only Hurriyet, Dogan Gazetecilik, and Dogan Burda Rizzoli. However, if and when the TME transaction closes, Fitch notes that Hurriyet will rely on its free cash flow generation capability to satisfy its outstanding obligations and it is highly unlikely that there will be any dividend flow from Hurriyet to DYH in the medium term. Fitch also notes that dividend flow from Dogan TV is not expected in the next five years as the subsidiary pays down its portion of debt. DYH currently has full control over its subsidiaries and Fitch views that management has scope to direct the cash when needed. DYH is owned by Dogan Sirketler Grubu A.S., which is the holding company of Aydin Dogan and his family. The Dogan Family and AD Foundation owns 3% of the company. The rest of DYH shares are floated. HURRIYET GAZETECILIK: Acquires Trader Media for US$500 Million -------------------------------------------------------------- Hurriyet Gazetecilik ve Matbaacylyk A.S. disclosed a recommended voluntary offer to acquire 100% of Trader Media East Ltd. for US$500 million in cash. Hurriyet, a subsidiary of Dogan Yayin Holding, has a leading position in the Turkish media sector. With this potential acquisition, Hurriyet will be one of the largest providers of online and offline classified advertising. Moreover, this will give Hurriyet access to high growth regions of Central & Eastern Europe; especially Russia and CIS. TME is a provider of print and online classified advertising in the Russia, CIS, Baltics and Eastern Europe region. "Hurriyet's leading position in the Turkish classified advertising market, combined with TME's leading position in high-growth markets in the Russian, CIS, Baltics and Eastern European region will create one of the largest classified advertising groups in the world," Vuslat Dogan Sabancy, Hurriyet's CEO disclosed. "Following the Offer, approximately 35% of the H�rriyet group's overall revenues will come from outside Turkey. The Offer is an important step towards Dogan Yayin's stated strategy of becoming a major international force. I believe our offer to TME Shareholders is at an attractive value and will be received positively," Mr. Sabancy added. TME shares were offered to public in February 2006 for US$13 per share. The company's 2005 consolidated net revenues were US$197.9 million and consolidated EBITDA was US$64.9 million. About TME Headquartered in Netherlands, Trader Media East Ltd. -- http://www.tmeast.com/-- is an online and print classified advertising provider with strong local brands serving local markets in Central and Eastern Europe. It has operations in Russia, Poland, Hungary, Croatia, Ukraine, Kazakhstan, Belarus and Lithuania. TME has strong local brands in print and online classified market. Some of TME's important brands among its 256 print titles are Iz Ruk v Ruki and Aviso in Russia & CIS; Szuperinfo and Expressz in Hungary, Oglasnik in Crotia; AutoBit in Poland. With a total of 50,000,000 GDRs, TME is traded on London Stock Exchange. Over the three months ending Dec. 19, 2006, the GDRs had a volume weighted average closing price of US$8.10 while Hurriyet's offer is US$10.00. TME's closing share price was US$7.80 as of Dec. 19, 2006. About Hurriyet Headquartered in Turkey, Hurriyet Gazetecilik ve Matbaacylyk A.S. is the flagship subsidiary of Dogan Yayin Holding and is the leading publishing house in Turkey. The company publishes four national newspapers, operates five online news and classified portals, and owns eight printing facilities. It has 1,900 employees. As of Financial Year 2005, Hurriyet has posted US$436 million revenues and US$120 million EBITDA. Hurriyet is listed on Istanbul Stock Exchange with 40% free float and over 90% of its free float is held by foreign institutional shareholders. The company is trading at a market capitalization of around US$1.1 billion. About Dogan Yayin Holding DYH -- http://www.dmg.com.tr/-- has a market-leading position in the Turkish market through its operations in newspapers and magazine publishing, television and radio broadcasting, printing and new media with total consolidated revenues and EBITDA of US$1.3 billion and US$153 million respectively for Financial Year 2005. With approximately 7,000 employees, DYH is uniquely positioned in different segments of media, with an estimated 42% share of the total advertising market in Turkey. DYH is listed on Istanbul Stock Exchange, with a 34% free float. HURRIYET GAZETECILIK: Fitch Places BB Ratings on Watch Negative --------------------------------------------------------------- Fitch Ratings placed Turkey-based Hurriyet's foreign currency and local currency Issuer Default ratings of BB on Rating Watch Negative following its recommended voluntary offer to acquire 100% of Trader Media East Limited at US$10 per share for an implied valuation of US$500 million. The agency also placed Hurriyet's National Long-term rating of AA- on RWN. Hurriyet has no issues outstanding as of January. Closing of the transaction is conditional on receiving necessary regulatory approvals, sufficient valid acceptances from TME shareholders corresponding to an at least 51% stake in the company and other customary conditions. Fitch notes that TME's current stock price on the London Stock Exchange is already above the offer price of US$10 per share and the duration of the offer by Hurriyet is seven months. The transaction is expected to result in a significant cash outflow from Hurriyet that will be financed by a US$350 million loan from ABN Amro Bank and US$150 million from the company's internal sources. TME is a leading provider of print and online classified advertising in Russia, the CIS, the Baltics, and Eastern Europe. It is one of the leading classified advertising companies in the region, operating with weekly and daily newspapers and websites, primarily in the real estate, automotive and recruitment categories. The company's 2005 consolidated net revenues were US$197.9 million and consolidated EBITDA was US$64.9 million. Following the successful completion of the transaction, approximately 35% of the Hurriyet group's overall revenues will be derived from outside Turkey. Fitch sees this offer as an important step towards the media group's aspirations for regional growth in Russia, the CIS, and Eastern Europe. The RWN reflects Fitch's view that the rating could remain at its current level or be downgraded upon the conclusion of the acquisition. The Watch will be resolved when the deal closes or if it is abandoned. The rating outcome will depend on the final structure of the transaction depending on acceptance level by the TME shareholders and consequently the resulting cash outflow from Hurriyet. As at nine months ended Fiscal Year 2006, Hurriyet's consolidated net cash stood at US$62 million. If and when this transaction closes, Hurriyet's consolidated Fiscal Year ended 2006 net debt-to-EBITDA could range from 1.4x to 2.7x under the worst-case scenario. The latter could indicate a maximum of one-notch rating downgrade depending on the final structure of the deal. Hurriyet is Turkey's leading daily national newspaper, with strong positions in advertising and circulation revenues. Hurriyet is a subsidiary of Dogan Yayin Holding, which has 60% equity interest. The latter is controlled by Dogan Holding. ============= U K R A I N E ============= GORODOK RESEARCH: Hmelnitskij Court Starts Bankruptcy Process ------------------------------------------------------------- The Economic Court of Hmelnitskij Region commenced bankruptcy proceeding against OJSC Gorodok Research Experimental Plant (code EDRPOU 00901677) on Dec. 12, 2006, after finding it insolvent. The case is docketed under Case No. 3/187-B. The Liquidator/Insolvency Manager is: Victor Matuschak G. Skovoroda Str. 14 29000 Hmelnitskij Region Ukraine The Debtor can be reached at: OJSC Gorodok Research Experimental Plant Stanciynaya Str. 1 Gorodok 31416 Hmelnitskij Region Ukraine GREEN HORN: Claims Submission Deadline Set January 19 ----------------------------------------------------- Creditors of Agricultural LLC Green Horn (code EDRPOU 32874539) have until Jan. 19 to submit written proofs of claim to: Sergey Vinnyk, Temporary Insolvency Manager Gvardeyskiy Lane 3 Cherkassy Region Ukraine Tel: 65-11-28 The Economic Court of Cherkassy Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 01/5002. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: Agricultural LLC Green Horn Zeleniy Rog Shazhkov District 19720 Cherkassy Region Ukraine OREHOVSKOE BEET: Creditors Must File Claims by January 20 --------------------------------------------------------- The Economic Court of Poltava Region commenced bankruptcy proceeding against the company on Dec. 12, 2006, after finding it insolvent. The case is docketed under Case No. 18/213. Creditors of Agricultural OJSC Orehovskoe Beet Farm (code EDRPOU 00384928) have until Jan. 20 to submit written proofs of claim to: Larisa Goleynaya, Liquidator Mir Str. 9 36022 Poltava Region Ukraine The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region Ukraine The Debtor can be reached at: Agricultural OJSC Orehovskoe Beet Farm Novoorehovka Lubenka District 37562 Poltava Region Ukraine SPECIAL ASSEMBLING: Creditors Must File Claims by January 20 ------------------------------------------------------------ Creditors of LLC Special Assembling Industry (code EDRPOU 32735765) have until Jan. 20 to submit written proofs of claim to: V. Shulga, Liquidator Anischenko Str. 12 01010 Kiev Region Ukraine The Economic Court of Kiev Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kiev Region Ukraine The Debtor can be reached at: LLC Special Assembling Industry Berlinskiy Str. 9 04060 Kiev Region Ukraine STARYE BABANY: Creditors Must File Claims by January 19 ------------------------------------------------------- Creditors of OJSC Starye Babany Granite Full Gallop (code EDRPOU 00293717) have until Jan. 19 to submit written proofs of claim to: Oleg Bilera, Liquidator Shevchenko Boulevard 250 Cherkassy Region Ukraine The Economic Court of Cherkassy Region commenced bankruptcy proceeding against the company on Nov. 21, 2006, after finding it insolvent. The case is docketed under Case No. AA 783030. The Economic Court of Cherkassy Region is located at: Shevchenko Avenue 307 18005 Cherkassy Region Ukraine The Debtor can be reached at: OJSC Starye Babany Granite Full Gallop Granitnaya 1 Starie Babany Uman District 19733 Cherkassy Region Ukraine TH BALCEM: Creditors Must File Claims by January 24 --------------------------------------------------- Creditors of LLC TH Balcem (code EDRPOU 31461542) have until Jan. 24 to submit their proofs of claims TO: DPI of Balakleya District Mukanov Str. 63 Balakleya 64200 Kharkov Region Ukraine The Economic Court of Kharkov Region commenced bankruptcy proceeding against the company on Nov. 2, 2006, after finding it insolvent. The case is docketed under Case No. B-31/84-06. The Economic Court of Kharkov Region is located at: Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Region Ukraine The Debtor can be reached at: LLC TH Balcem Balakleya Kharkov Region Ukraine TRIESPASS NOVAN: Creditors Must File Claims by January 19 --------------------------------------------------------- Creditors of LLC Triespass Novan (code EDRPOU 33398263) have until Jan. 19 to submit written proofs of claim to: O. Scherban, Liquidator p.o.b. 157 01030 Kiev Region Ukraine The Economic Court of Kiev commenced bankruptcy proceeding against the company on Dec. 6, 2006, after finding it insolvent. The case is docketed under Case No. 44/593-b. The Economic Court of Kiev Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kiev Region Ukraine The Debtor can be reached at: LLC Triespass Novan Berlinskiy Str. 9 04060 Kiev Region Ukraine UNIPROMSERVICE LLC: Creditors Must File Claims by January 19 ------------------------------------------------------------ Creditors of LLC Unipromservice (code EDRPOU 24999327) have until Jan. 19 to submit written proofs of claim to: Alexander Shykulenko, Liquidator Shyrshova Str. 7 49030 Dniepropetrovsk Region Ukraine The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company on Dec. 5, 2006, after finding it insolvent. The case is docketed under Case No. B 29/348-06. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor can be reached at: LLC Unipromservice Matrosov Str. 88-58 Dnieprodzerzhynsk 51900 Dniepropetrovsk Region Ukraine ZHURAVKA LLC: Claims Submission Deadline Set January 19 ------------------------------------------------------- Creditors of LLC Zhuravka (code EDRPOU 30950518) have until Jan. 19 to submit written proofs of claim to: Natalya Chesnova, Temporary Insolvency Manager P.O. Box 2047 49033 Dnipropetrovsk Region Ukraine Tel: 8(0562) 36-10-75 The Economic Court of Dnipropetrovsk Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B 15/178/05. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor can be reached at: LLC Zhuravka Lenin Str. 50 Yurievka Carichanskiy District 51020 Dnipropetrovsk Region Ukraine =========================== U N I T E D K I N G D O M =========================== ABBSEAL (U.K.) LTD: Brings In KPMG to Administer Assets ------------------------------------------------------- Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of Abbseal (U.K.) Ltd. (Company Number 05304745) on Dec. 18. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Abbseal (U.K.) Ltd. can be reached through: KPMG LLP 1 The Embankment Neville Street Leeds West Yorkshire LS1 4DW United Kingdom Tel: 0113 231 3332 Fax: 0113 231 3183 B D P JOINTERS: Creditors' Meeting Scheduled for Jan. 18 -------------------------------------------------------- Creditors of B D P Jointers Ltd. will meet at 11:00 a.m. on Jan. 18 at: Cooper Young Kirkdale House Kirkdale Road London E11 1HP United Kingdom A list of the names and addresses of the Company's Creditors may be inspected, free of charge, between 10:00 a.m. and 4:00 p.m. on Jan. 16 at: Cooper Young Kirkdale House Kirkdale Road London E11 1HP The company can be reached at: B D P Jointers Ltd. 36 Vernon Road Ilford Essex IG3 8DL United Kingdom Tel: 020 8597 8497 BAILEY & SMITH: Names Claire Dwyer to Administer Assets ------------------------------------------------------- Claire L. Dwyer of Jones Lowndes Dwyer LLP was named administrator of Bailey & Smith Ltd. (Company Number 05648982) on Dec. 15, 2006. The administrator can be reached at: Claire L. Dwyer Jones Lowndes Dwyer LLP 4 The Stables Wilmslow Road Didsbury Manchester M20 5PG United Kingdom Tel: 0161 832 9454 Fax: 0161 832 9455 E-mail: clairedwyer@joneslowndesdwyer.co.uk Headquartered in Manchester, England, Bailey & Smith Ltd. -- http://www.baileysmith.co.uk/-- manufactures and supplies refrigeration equipment. BB & EA: Claims Filing Period Ends Jan. 31 ------------------------------------------ Creditors of BB & EA Holdings Limited have until Jan. 31, to send in their full names and addresses, full particulars of their debts or claims, and the names and addresses of their Solicitors, (if any) to appointed Joint Liquidator Thomas M. Burton at: Ernst & Young Ten George Street Edinburgh EH2 2DZ United Kingdom Thomas M. Burton and Colin P. Dempster of Ernst & Young were appointed Joint Liquidators of the company on May 7, 2004. Ernst & Young -- http://www.ey.com/-- is global organization help companies in businesses across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. It has 107,000 people in 140 countries around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad array of services relating to audit and risk-related services, tax, and transactions. BCT OUTDOORS: Appoints Joint Administrators from KPMG ----------------------------------------------------- Neil Anthony Armour and Blair Carnegie Nimmo of KPMG LLP were appointed joint administrators of BCT Outdoors Ltd. (Company Number 01709058) on Dec. 15, 2006. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Headquartered in Bradford, England, BCT Outdoors Ltd. manufactures tents. BEAUMONT ROSE: Creditors' Claims Due Jan. 22 -------------------------------------------- Creditors of Beaumont Rose Limited (formerly Ormes Wine Bar Ltd.) have until Jan. 22 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to appointed Liquidator Martin C. Armstrong at: Turpin Barker Armstrong Allen House 1 Westmead Road Sutton Surrey SM1 4LA United Kingdom The company can be reached at: Beaumont Rose Limited 545 Garratt Lane Wandsworth London SW184SR United Kingdom Tel: 020 8879 1056 Fax: 020 8879 1322 BENNETTS PLAYCARE: Names Vernon Charles Wright Liquidator --------------------------------------------------------- Vernon Charles Wright was appointed Liquidator of Bennetts Playcare Limited on Nov. 29, 2006, for the creditors' voluntary winding-up procedure. Turpin Barker Armstrong -- http://www.turpinba.co.uk/-- provides accounting, tax and business advisory services. The Liquidator can be reached at: Vernon Wright & Co. Limited 40-42 High Street Maldon Essex CM9 5PN United Kingdom BERNSTEIN GROUP: Creditors' Meeting Slated for January 19 --------------------------------------------------------- Creditors of Bernstein Group Holdings Ltd. (Company Number 4956646) will meet at 10:00 a.m. on Jan. 19, at: Ramada Jarvis Hotel Manchester Road Blackrod Bolton BL6 5RU United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Jan. 18, at: David Costley-Wood Joint Administrator KPMG LLP St. James' Square Manchester Greater Manchester M2 6DS United Kingdom Tel: 0161 838 4000 Fax: 0161 838 4040 KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. BERRYS DIRECT: Taps N. A. Bennett to Liquidate Assets ----------------------------------------------------- N. A. Bennett of Leonard Curtis was appointed Liquidator of Berrys Direct Limited on Dec. 19, 2006, for the creditors' voluntary winding-up procedure. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Berrys Direct Limited can be reached at: Berrys Direct Limited Unit 1 1000 North Circular Road Brent London NW2 7JP United Kingdom Tel: 0870 366 6100 Fax: 020 8452 8800 BLUEWATER MARINE: Nominates Liquidator from Mayfields ----------------------------------------------------- Paul John Webb of Mayfields was nominated Liquidator of Bluewater Marine (Kingsbridge) Limited on Nov. 28, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Mayfields Church Steps House Queensway Halesowen West Midlands B63 4AB United Kingdom BOOKS FOR STUDENTS: Brings In Liquidators from PwC -------------------------------------------------- Mark David Charles Hopkins and Edward Mark Shires of PricewaterhouseCoopers LLP were appointed Liquidators of Books for Students Limited on Sept. 21, 2006, for the creditors' voluntary winding-up procedure. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. Books for Students Limited can be reached at: 22-28 George Street Hull HU1 3AP United Kingdom Tel: 01482 384660 Fax: 01482 384677 Web: http://www.bfsworldwide.com/ BOOTS BOARD: Appoints M. S. E. Solomons as Liquidator ----------------------------------------------------- M. S. E. Solomons of SPW Poppleton & Appleby was appointed Liquidator of Boots Board Ltd. (t/a Boots Systems) on Dec. 20, 2006, for the creditors' voluntary winding-up procedure. Headquartered in Bedford, England, Boots Board Ltd. -- http://www.bootsit.com/about.html/-- provides developing advanced solutions for U.K. businesses for over ten years. The company hosts the online presence of hundreds of small/medium enterprises and many global corporates. It has worldwide hosting capability via partners in New York, Boston, Sydney and other major centers -- with customers using this coverage to lower their cost of ownership for global networking. BRETTON HOLDINGS: Nominates Liquidators from PwC ------------------------------------------------ Shareholders of Bretton Holdings (One) Limited nominated Ian Christopher Oakley Smith and David John Blenkarn of PricewaterhouseCoopers LLP nominated as Joint Liquidators of the company on Dec. 19, 2006, for the creditors' voluntary winding-up procedure. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. The Joint Liquidators can be reached at: PricewaterhouseCoopers LLP 12 Plumtree Court London EC4A 4HT United Kingdom BRISTOL TOOL: Creditors' Claims Due Jan. 31 ------------------------------------------- Creditors of Bristol Tool & Gauge Engineering Limited have until Jan. 31 to prove and send their claims to appointed Liquidator N. Morrison at: Grant Thornton U.K. LLP 43 Queen Square Bristol BS1 4QR United Kingdom The Liquidator intends to pay a first dividend within four months of the last date for proving. The company can be reached at: Bristol Tool & Gauge Engineering Limited Unit E Siston Centre Station Road Kingswood Bristol BS154GQ United Kingdom Tel: 0117 967 4881 Fax: 0117 960 3800 BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal ---------------------------------------------------------------- British Airways welcomed the decision by its trade unions in the BA Forum to recommend changes to its New Airways Pension Scheme (NAPS), which has a GBP2.1 billion deficit. The British Airways Forum represents the airline's four unions and is recommending acceptance of the proposal and will now consult with members formally. The company has agreed to make a one off contribution of GBP800 million into the fund subject to acceptance of benefit changes. Together with a one-off employee saving of GBP400 million and changes to future benefits, the NAPS pension deficit will be reduced by more than half from an existing GBP2.1 billion to GBP0.9 billion and the company's annual contributions will be around GBP280 million a year for the next ten years. British Airways' chief executive, Willie Walsh, said: "This is great news. Together with the NAPS Trustees and staff, we have found a shared solution that helps secure the pensions of our 33,500 NAPS members and removes a major blocker to future investment in British Airways. This brings the NAPS deficit and ongoing contributions to a level which is affordable by British Airways and effectively tackles one of the most fundamental issues we face." A funding plan to clear the NAPS deficit over 10 years was agreed with the pension scheme trustees in 2006, subject to members accepting changes to future benefits. Under the proposals there will be a normal retirement age of 65 with a contribution rate of 5.25 percent and the ability for employees to pay a higher pension contribution rate of 8.5 percent to retire at 60. Staff can still choose to retire earlier than the normal retirement age but with a reduced pension. There will also be a normal retirement age of 55 with a contribution rate of 9 percent on top of the cost of retiring at 60. This option is available to all staff. Future pensionable pay rises will be capped to inflation and pension growth in retirement remains at five percent. The company will make a one-off contribution of GBP800 million and up to GBP150 million more in contributions over the next three years subject to financial targets. Together with the one-off employee saving of GBP400 million and changes to future benefits, the GBP2.1 billion deficit will be more than halved to GBP0.9 billion. The airline's annual contributions for the next ten years of GBP280 million, up from GBP272 million in November last year, will clear the remaining deficit. The GBP8-million increase represents the cost of improved contributions and keeping LPI at five percent. The NAPS trustees approved the funding plan to clear the deficit last year. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BRITISH AIRWAYS: Traffic Figures Slide in December 2006 ------------------------------------------------------- British Airways disclosed its traffic and capacity statistics for December 2006. In December 2006, passenger capacity, measured in Available Seat Kilometers, was 0.1% below December 2005. Traffic, measured in Revenue-Passenger-Kilometers, was lower by 0.5%. This resulted in a passenger load factor down 0.3 points versus last year, to 73.9%. The decrease in traffic comprised a 2.8% increase in premium traffic and a 1% decrease in non-premium traffic. Cargo, measured in Cargo-Ton-Kilometers, decreased by 11.6%. Severe fog conditions in the run up to Christmas led to the cancellation of more than 800 flights, affecting European and domestic services. Overall load factor fell by 0.6 points to 70.5%. For the September to December quarter, ASKs rose by 0.5%, with RPKs flat. This resulted in passenger load factor down 0.4 points, to 73.7%. This comprised a 2.8% increase in premium traffic and a 0.6% increase in non-premium traffic. CTKs fell by 9%. Underlying market conditions are broadly unchanged. Strategic Developments The airline launched a new five times a week service From Heathrow to Calgary and a new five times a week service from Gatwick to Salzburg. The T&G's cabin crew branch is balloting its members on industrial action. The company has been in talks for some time with the T&G and Amicus on changes to work practices that would contribute toward the airline's drive to achieve a GBP450-million reduction in costs by March 2008. Talks continue. In response to the Government's announcement of a 100% increase in Air Passenger Duty, the airline called for tax reform and said at least GBP87 million should be ring-fenced for spending on emissions-reducing renewable energy projects in the developing world, thereby offsetting all the airline's emissions. The New Year flight sale featured discounts on 4.5 million seats to 140 destinations worldwide. Avis and Vanguard have been selected as the airline's worldwide car rental partners. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BRUCE BUTCHER: Calls In Liquidators from Kroll ---------------------------------------------- Adrian John Wolstenholme and Joanne Marie Wright of Kroll were appointed Liquidators of Bruce Butcher Electrical Limited on Nov. 3, 2006, for the creditors' voluntary winding-up proceeding. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigat ion, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. Bruce Butcher Electrical Limited can be reached at: North Hinksey Lane Botley Oxford Oxfordshire OX2 0JS United Kingdom Tel: 01865 727058 Fax: 01865 79076 BUSY BEES: Taps Liquidator from DTE Leonard Curtis -------------------------------------------------- The Members and Creditors of Busy Bees Commercial Cleaning U.K. Limited appointed Alan Clifton of DTE Leonard Curtis as Liquidator of the company on Dec. 13, 2006, for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: DTE Leonard Curtis Bamfords Trust House 85-89 Colmore Row Birmingham B3 2BB United Kingdom CARLINGS BUTCHERS: Claims Filing Period Ends Jan. 12 ---------------------------------------------------- Creditors of Carlings Butchers & Delicatessen Limited have until Jan. 12 to send their names and addresses and particulars of their claims to appointed Joint Liquidators Matthew Colin Bowker and David Antony Willis at: Jacksons Jolliffe Cork Lowgate Ho use Lowgate Hull HU1 1EL United Kingdom Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- engages exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. CELTIC SAVOURIES: Appoints Administrators from Begbies Traynor -------------------------------------------------------------- David Hill and William John Kelly of Begbies Traynor were appointed joint administrators of Celtic Savouries Ltd. (Company Number 05458105) on Dec. 18, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Celtic Savouries Ltd. can be reached at: CWMDU Industrial Estate Carmarthen Road Gendros Swansea West Glamorgan SA5 8JF United Kingdom Tel: 01792 588 674 COLLINS & AIKMAN: Agrees to Resolve Prepetition Debt with Lear -------------------------------------------------------------- Collins and Aikman Corp. and its debtor-affiliates asked the U.S. Bankruptcy Court for the Eastern District of Michigan to approve a second stipulation with Lear Corp. and its affiliates and subsidiaries. The parties have agreed on a second stipulation to resolve the remaining disputed prepetition debt, which will mark the end of the parties' dispute, Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in New York, New York, informs the court. Before the Petition Date, the Debtors and Lear provided each other with certain automotive component parts. It was agreed on the first stipulation that the prepetition Lear receivable owed to the Debtors was US$4,441,028. The Debtors also believed that they were owed an additional US$866,622 from Lear on account of prepetition shipments to Lear. It was also agreed in the First Stipulation that Lear was owed US$331,899. At the time of the First Stipulation, Lear asserted that it continued to be owed on account of prepetition shipments to the Debtors an additional US$88,209 from the Debtors. Both parties have reconciled and agreed that the additional receivable is due to Lear. On Nov. 3, 2006, Lear filed a motion seeking a declaration that the automatic stay did not prohibit it from recouping the prepetition amounts owed to Lear against prepetition amounts that Lear owed the Debtors. Mr. Carmel relates that under certain agreements, the Debtors transferred certain accounts to Carcorp Inc., who in turn assigned substantially all accounts receivable to General Electric Capital Corporation. GECC alleged that under the terms of the Agreements, around US$1,776,305 of the Lear Receivable was assigned to GECC. It was agreed in the First Stipulation that US$1,323,907 was owed in respect to the assigned accounts. On Dec. 22, 2005, GECC filed a complaint for declaratory judgment and related relief against the Debtors and Lear seeking payment of the portion of the Lear Receivable assigned to GECC. In accordance with the First Stipulation, Lear paid the Debtors US$2,697,683 and paid GECC US$1,323,907. On Oct. 13, 2006, the Court approved a stipulation regarding a Receivables Transfer Agreement between the Debtors and GECC. The Debtors and Lear now agree that US$513,168 of the disputed prepetition debt is actually owed by various other customers of the Debtors or is otherwise not payable by Lear; and US$273,272 is based on invoices that were paid by Lear, and therefore, were not properly categorized as part of the Lear Receivable, Mr. Carmel states. The remaining Disputed Prepetition Debt is US$79,512. Pursuant to the Second Stipulation, the Debtors and Lear have agreed that: * Lear will pay US$39,756 to the Debtors within five business days from the entry of Court order, and the payment will absolve Lear of any and all liability for any debt on account of the Lear Receivable or the Disputed Prepetition Debt; and * Lear may recoup the Reserve and apply it in full settlement of the Additional Receivable. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds --------------------------------------------------------- In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, Corus Group plc confirmed that, as at Jan. 8, it had these relevant securities in issue (including any ordinary shares represented by American Depositary Shares but excluding any ordinary shares held in treasury): -- 945,889,566 ordinary shares of 50p each under ISIN code GB00B127GF29. -- 4.625% convertible subordinated bonds due 2007 amounting to NLG345,000,000 convertible into 19,338,687 ordinary shares of Corus Group plc. The ISIN code for these securities is NL0000183184. Each American Depositary Share represents two ordinary shares of the company. About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival Koninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Six years ago, the group suffered from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * As reported in the TCR-Europe on Nov. 22, 2006, Standard & Poor's Ratings Services kept its 'BB' long-term corporate rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, following the announcement by Brazil- based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/- -) of a proposed takeover offer worth 475 pence per share. At the same time, the 'BB+' senior secured bank loan ratings and 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18 following the announcement of an initial bid for the company from India-based steel manufacturer Tata Steel Ltd. In a TCR-Europe report on Oct. 25, 2006, Moody's Investors Service placed all ratings of Corus Group plc under review with direction uncertain following the recommendation of the board of Corus Group in favor of the proposed acquisition of the entire capital of Corus Group by Tata Steel Limited. Ratings affected: Corus Group plc * Ba2 Corporate Family Rating; * Ba1 Rating on EUR800 million Secured Bank Facilities maturing July 2008; * B1 Rating on EUR800 million Unsecured Notes due 2011; and * B1 Rating on GBP200 million in Unsecured Notes due 2008. Moody's last rating action on Corus was the upgrade to Ba2/Ba1/B1 on May 8. As reported in the TCR-Europe on Oct. 24, 2006, Fitch Ratings changed the Rating Watch on Corus Group PLC's Issuer Default and senior unsecured BB- and Short-term B ratings to Negative from Positive. This follows the recommendation by the CS Board of an offer from India-based Tata Steel Ltd. valued at GBP4.3 billion. The RWN also applies to these debt instruments issued by CS: -- CS EUR800 million 7.5% senior notes; -- CS EUR307 million 3% convertible bonds; and -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds. Fitch will resolve the Rating Watch following publication of CS's 2006 results, further details on the level of synergies and operational benefits that could accrue under the transaction, and the closure of the deal. DURA AUTOMOTIVE: Creditors Panel Taps Kramer Levin as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors in DURA Automotive Systems Inc. and its debtor affiliates' Chapter 11 cases, seek authority from the U.S. Bankruptcy Court for the District of Delaware to retain Kramer Levin Naftalis & Frankel LLP as its counsel, effective as of Nov. 7, 2006. Nicholas W. Walsh, chairperson of the Committee, explains that the Creditors Committee selected Kramer Levin primarily because the firm's Corporate Restructuring and Bankruptcy Department has extensive experience in the fields of bankruptcy and creditors' rights and, in particular, has represented official creditors committees in some of the largest and most complex Chapter 11 reorganization cases of recent years, including Dana Corporation, Genuity Inc., Bethlehem Steel Corporation, and Adelphia Business Solutions Inc., among others. In addition to acting as primary spokesman for the Committee, Kramer Framer Levin's services will also, without limitation, assist, advise, and represent the Committee with respect to: a. the administration of these cases and the exercise of oversight with respect to the Debtors' affairs including all issues in connection with the Debtors, the Committee or the Chapter 11 cases; b. the preparation on behalf of the Committee of necessary applications, motions, memoranda, orders, reports and other legal papers; c. appearances in Court and at statutory meetings of creditors to represent the interests of the Committee; d. the negotiation, formulation, drafting and confirmation of a plan or plans of reorganization and matters related thereto; e. the investigation, if any, as the Committee may desire concerning, among other things, the assets, liabilities, financial condition, sale of any of the Debtors' businesses, and operating issues concerning the Debtors that may be relevant to the Chapter 11 Cases; f. communications with the Committee's constituents and others at the direction of the Committee in furtherance of its responsibilities, including, but not limited to, communications required under Section 1102 of the Bankruptcy Code; and g. the performance of all of the Committee's duties and powers under the Bankruptcy Code and the Bankruptcy Rules and the performance of other services as are in the interests of those represented by the Committee. Kramer Levin will bill: Professional Hourly Rate ------------ ----------- Partners US$500 to US$795 Counsel US$505 to US$855 Associates US$295 to US$545 Legal Assistants US$190 to US$220 Kramer Levin will also seek reimbursement of out-of-pocket expenses. Thomas Moers Mayer, Esq., a member at Kramer Levin, assures the Court that: (i) the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code; (ii) neither Kramer Levin nor its professionals have any connection with the Debtors, the creditors or any other party-in-interest; and (iii) Kramer Levin does not hold or represent any interest adverse to the Committee in the matters for which it is to be retained. 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. 6; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Panel Taps Chanin Capital as Financial Advisors ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in DURA Automotive Systems Inc. and its debtor affiliates' Chapter 11 cases seek authority from the U.S. Bankruptcy Court for the District of Delaware to retain Chanin Capital Partners as its financial advisors, nunc pro tunc to Nov. 10, 2006. Nicholas W. Walsh, chairperson of the Committee, relates that Chanin Capital has diverse experience and extensive knowledge in the field of bankruptcy. The firm has advised debtors and creditors committees in numerous restructuring transactions, including some of the largest and most complicated cases like in ATX Communications, Inc.; Birch Telecom, Inc.; Cable & Wireless USA, Inc.; Converse, Inc.; and Neoplan USA. Mr. Walsh tells the Court that the Committee needs Chanin Capital's assistance in collecting and analyzing financial and other information in relation to the Debtors' Chapter 11 cases. Chanin Capital will: (a) analyze and evaluate the liquidity position, assets and liabilities, and financial condition of the Debtors; (b) review and analyze the Debtors' financial and operating statement; (c) review and analyze the Company's business and financial projections; (d) evaluate the Company's debt capacity in light of its projected cash flows; (e) assist in the determination of an appropriate capital structure for the Company; (f) determine a theoretical range of values for the Company on a going concern basis; (g) assist the Committee in identifying and evaluating candidates for the potential acquisition of certain assets the Company; (h) analyze proposed sales of assets of the Debtors, the terms and options and related issues, including available strategic alternatives; (i) review, analyze and monitor the Debtor-In-Possession financing and other financing alternatives; (j) advise the Committee on tactics and strategies for negotiating with the Company and other purported stakeholders; (k) determine a theoretical range of values for any securities to be issued or distributed in connection with the Chapter 11 case, including without limitation any securities to be distributed under a plan; (l) advise and assist the Committee in the review and analysis of the Debtors' business plan; (m) advise and assist the Committee in the review of all plans; (n) assist with a review of the Debtors' short-term cash management procedures and monitoring of cash flow; (o) assist with a review of the Debtors' employee benefit programs; (p) assist and advise the Committee with respect to the Debtors' management of their supply chain, including critical and foreign vendors; (q) assist with a review of the Debtors' performance of cost/benefit evaluations with respect to the affirmation or rejection of various executory contracts involving vendors and customers; (r) assist in the evaluation of the Debtors' operations and identification of areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; (s) assist in the review and preparation of information and analysis necessary for the confirmation of a plan; (t) assist in the review of potential claims levels and the Debtors' reconciliation process; (u) assist with various tax matters; (v) provide testimony in any proceeding before the Court; and (w) provide the Committee with other appropriate general restructuring advice. Chanin Capital will be paid US$150,000 per month and will be reimbursed for expenses incurred in connection with the engagement. A US$1,500,000 transaction fee will also be paid to the firm on the effective date of a plan of reorganization. Brent Williams, managing director at Chanin Capital, discloses that the firm represents certain Committee members or parties- in-interest in the Debtors' Chapter 11 cases. Chanin Capital, however, has not identified any material relationships with any party that would otherwise affect its judgment or ability to perform services for the Committee. Chanin Capital assures the Court that it has not and will not provide any professional services to the Debtors, any of the creditors, other parties-in-interest with regard to any matter related to the Debtors' Chapter 11 cases. Mr. Williams assures the Court that Chanin Capital is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Auction Sets Bond Price at 24.12% of Face Value ---------------------------------------------------------------- In an auction held on Nov. 28, 2006, Dura Automotive Systems Inc.'s US$400,000,000 of 8.625% notes have been given a redemption price of 24.125 cents on the dollar by credit-default swap dealers, Bloomberg News reports. The redemption rate will be used by up to 327 banks and investors to cash-settle credit- default swaps based on the notes. Another auction set a value of 3.5% of face value for Dura's $523,000,000 of 9% subordinated notes, according to Bloomberg's Shannon D. Harrington Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a company's ability to repay debt. Twelve dealers participated in the auctions, which were run by Creditex Group Inc. and Markit Group Ltd. According to the International Swaps and Derivatives Association, the bidders were Bank of America, Barclays, Bear Stearns, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, and UBS. 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. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ENCHANTED INTERIORS: Names Andrew Appleyard as Administrator ------------------------------------------------------------ Andrew Appleyard of Haines Watts was named administrator of Enchanted Interiors Ltd. (Company Number 04649921) on Dec. 20, 2006. Haines Watts -- http://www.hwca.com/-- is a national U.K. business advisory and accountancy firm with a network of practices strategically placed throughout England, Wales and Scotland, offering tax and general business advice. Its experienced tax accountants, business advisors and special service teams will help its clients with every aspect of its business. Enchanted Interiors Ltd. can be reached at: 6 Shakespeare Drive Shirley Solihull West Midlands B90 2AJ United Kingdom Tel: 01217445551 FORD MOTOR: Partners with Microsoft on In-Car Digital Systems ------------------------------------------------------------- Ford Motor Company has launched a new factory-installed, in-car communications and entertainment system that is designed to change the way consumers use digital media portable music players and mobile phones in their vehicles. The Ford-exclusive technology based on Microsoft Auto software, called Sync, provides consumers the convenience and flexibility to bring into their vehicle nearly any mobile phone or digital media player and operate it using voice commands or the vehicle's steering wheel or radio controls. Sync offers consumers two ways to bring electronic devices into their Ford, Lincoln, and Mercury vehicles and operate them seamlessly through voice commands or steering wheel controls: * Bluetooth, for wireless connection of phones and phones that play music. * A USB 2.0 port for command and control and charging of digital media players -- including the Apple iPod and Microsoft Zune -- as well as PlaysForSure music devices and most USB media storage devices. Supported formats include MP3, AAC, WMA, WAV, and PCM. Sync will debut this calendar year on the 2008 Ford Focus, Fusion, Five Hundred, Edge, Freestyle, Explorer, and Sport Trac; Mercury Milan, Montego, and Mountaineer; and Lincoln MKX and MKZ. The technology will be on all Ford, Lincoln, and Mercury vehicles in the near future. "Ford and Microsoft share a vision for a future where drivers are safely connected to the people, information and entertainment they care about while they are on the road," Microsoft Corporation Chairman Bill Gates said. 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. FRAGONSET RAILWAYS: Taps Begbies Traynor as Joint Administrators ---------------------------------------------------------------- W. J. Kelly and Mark R. Fry of Begbies Traynor were appointed joint administrators of Fragonset Railways Ltd. (Company Number 03305312) on Dec. 19, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Fragonset Railways Ltd. can be reached at: R.T.C. Business Park London Road Derby Derbyshire DE24 8 UP United Kingdom Tel: 01332 262 469 Fax: 01332 262 617 FUSION FILLINGS: Taps Buchanans Ltd as Joint Administrators ----------------------------------------------------------- Peter Anthony Hall and Alan Peter Whalley of Buchanans Ltd. were appointed joint administrators of Fusion Fillings Ltd. (Company Number 04159888) on Dec. 20, 2006. The administrators can be reached at: Peter Anthony Hall and Alan Peter Whalley Buchanans Ltd. Latimer House 5 Cumberland Place Southampton SO15 2BH United Kingdom Tel: 023 8022 1222 Fusion Fillings Ltd. can be reached at: 136 Long Street Easingwold York North Yorkshire YO61 3JA United Kingdom Tel: 01347821524 GENERAL MOTORS: Says Highland Rival Bid Could Delay Delphi Deal --------------------------------------------------------------- Delphi Corp. and General Motors Corp.'s reorganization deal with Appaloosa Management LP and Cerberus Capital Management could be delayed by a rival offer from Highland Capital Management LP, Reuters quotes Rick Wagoner, GM's CEO, as saying. Under Appaloosa and Cerberus' US$3.4 billion offer, GM will receive 7 million shares of Reorganized Delphi's common stock, US$2.63 billion in cash, and a release of claims by Delphi against GM. Highland's proposed funding fund, on the other hand, amounts to approximately US$4.7 billion. Delphi became a fully independent company on May 28, 1999, after it was spun-off from GM. About Delphi Corp. Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 327,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the TCR-Europe on Nov. 16, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corp. The term loan will be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. GENERAL MOTORS: Awards Lithium-Ion Battery Development Contracts ---------------------------------------------------------------- General Motors Corp. has awarded advanced battery development contracts to two suppliers to design and test lithium-ion batteries for use in the Saturn Vue Green Line plug-in hybrid SUV. One contract has been awarded to Johnson Controls - Saft Advanced Power Solutions LLC, a joint venture between Tier 1 automotive supplier Johnson Controls and Saft. Another agreement was signed with Cobasys, in partnership with A123Systems. Cobasys, based in Orion, Mich., is a joint venture between Chevron Technology Ventures LLC, a subsidiary of Chevron Corp., and Energy Conversion Devices Inc. A123Systems, based in Watertown, Mass., is a manufacturer of high power lithium-ion batteries. The two test batteries, one from Cobasys - A123Systems and the other from Johnson Controls - Saft, will be evaluated in prototype Saturn Vue Green Line plug-in hybrids beginning later this year. While both are lithium-ion batteries, the chemistry differs significantly. The suppliers also use unique methods in the design and assembling of the battery packs. GM announced in November at the 2006 Greater Los Angeles Auto Show its intention to produce a Saturn Vue Green Line plug-in hybrid that has the potential to achieve double the fuel efficiency of any current SUV. In addition to plug-in technology and a lithium-ion battery pack when ready, the Vue Green Line will use a modified version of GM's 2-mode hybrid system, powerful electric motors and highly efficient electronics to achieve significant increases in fuel economy. GM is co-developing the 2-mode hybrid system with DaimlerChrysler and BMW Group for use in front-, rear- and four- wheel drive applications in an array of car and truck models. The 2-mode system debuts later this year in the Chevrolet Tahoe/GMC Yukon Hybrid SUVs. About Johnson Controls Inc. Johnson Controls Inc., headquartered in Milwaukee, Wis., had sales of US$32 billion in fiscal year 2006 and employs approximately 136,000 people. Johnson Controls' power solutions business provides more than 110 million starter batteries globally each year. About Saft Advanced Power Solutions Saft Advanced Power Solutions LLC, headquartered in Paris, employs 4,000 people and had annual sales of more than US$700 million in 2005. Saft is a world leader in high performance batteries and has a decade of experience in lithium-ion development and manufacturing. Saft provided lithium-ion batteries for the Chevrolet Sequel fuel cell concept vehicle. About Johnson - Saft Joint Venture Saft and Johnson Controls formed the battery joint venture last year. Now, more than 150 people work for the joint venture, based also in Milwaukee. About Cobasys Cobasys has facilities in both Michigan and Ohio with approximately 400 employees to the design, manufacture and integrate advanced energy storage systems for both transportation and stationary power markets. It's headquarters features one of the world's largest Energy Storage System development and test facilities required for the validation of battery systems. Cobasys is presently supplying nickel-metal hydride systems for the Saturn Vue Green Line hybrid SUV and will be supplying NiMH systems for the 2007 Saturn Aura Green Line hybrid sedan. About A123Systems A123Systems, which employs 250 people, was started in 2001 to commercialize technology developed at the Massachusetts Institute of Technology. A123Systems has quickly grown to be one of the world's largest suppliers of high power lithium-ion batteries. By the end of 2007, A123Systems will have the annual capacity to make 20 million lithium-ion batteries for use in power tools. It also sells batteries for stationary backup power, jet engine auxiliary power units, and hybrid trucks and buses. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 327,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the TCR-Europe on Nov. 16, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corp. The term loan will be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. GREENFIELD CONSTRUCTION: Creditors' Meeting Slated for Jan. 19 -------------------------------------------------------------- Creditors of Greenfield Construction Ltd. (Company Number 04090552) will meet at 11:00 a.m. on Jan. 19 at: Days Hotel Pentagon Roundabout Nottingham Road Derby DE21 6DA United Kingdom Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Jan. 18 at: Chris Marsden Joint Administrator Ernst & Young LLP No. 1 Colmore Square Birmingham B4 6HQ United Kingdom Tel: +44 [0] 121 535 2000 Fax: +44 [0] 121 535 2001 Ernst & Young -- http://www.ey.com/-- provides broad array of services relating to audit and risk-related services, tax, and transactions across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. LADBROKES PLC: Inks Joint Venture Deal with Cirsa Slot ------------------------------------------------------ Ladbrokes PLC and Cirsa Slot Corporation SL have established a 50:50 joint venture company to develop a sports betting business in Spain. The JV will combine Ladbrokes, the world's biggest bookmaker, with operations in the U.K., Ireland, Belgium and Italy with Cirsa Slot, the leading slot machine company in Spain. Cirsa Slot accounts for 9% of the Spanish slot machine market, servicing over 15,000 food and beverage outlets with gaming areas and 90 arcades. The company is a division of CIRSA Corporation, which owns and operates casinos, arcades and bingo halls throughout the country. The JV company will apply for the new betting licenses being offered in Madrid where a new decree was passed in December 2006 regulating dedicated betting shops, non-dedicated betting kiosks (bars, arcades and bingo halls) and remote betting (telephone and Internet) for the first time. Applications for the licenses, which initially last five years, but are renewable, will be submitted to the Madrid regional government when requested, likely to be by mid-January. The JV will also work to secure betting licenses in other areas of Spain that are also considering regulating betting for the first time. Several of the other 16 regions of Spain are believed to be actively considering similar betting regulation. The Spanish gambling market was worth around EUR29 billion last year. Christopher Bell, Chief Executive of Ladbrokes plc commented: "This represents another major step forward in our international aspirations. In December we opened our first shops in Italy and successfully tendered for new licenses. Now we have formed a JV with a market leader in Spain that gives us access to a network of thousands of potential site operators. As soon as regulation allows we are confident that the combination of Ladbrokes' vast experience and expertise in betting and the local knowledge and operational capability of Cirsa will build a strong business in Spain." Pablo Alcala, Director of Cirsa Slot commented: "Sports betting is set to become an increasingly mainstream activity in Spain and we believe that this Joint Venture builds on the strengths of both companies -- Ladbrokes with over 100 years experience in betting and Cirsa with its massive presence in the Spanish market." About Ladbrokes Headquartered in Watford, United Kingdom, Ladbrokes plc -- http://www.ladbrokesplc.com/-- engages in fixed odds betting. The company is comprised of Ladbrokes, the biggest retail bookmaker in the U.K. and Ireland, Ladbrokes.com, a world- leading provider of interactive betting and gaming services, Vernons, the leading football pools operator and Ladbrokes Casinos, which opened its first casino at the Hilton London Paddington in July 2006. * * * As reported in the TCR-Europe on Oct. 26, Standard & Poor's Ratings Services affirmed its 'BB' ratings on the senior unsecured debt of U.K.-based gaming operator Ladbrokes PLC and its guaranteed subsidiary Ladbrokes Group Finance PLC, and removed the ratings from CreditWatch with negative implications. Moody's Investors Service downgraded in February the senior unsecured long-term ratings of Hilton Group Plc (nka Ladbrokes Plc) and its guaranteed subsidiaries to Ba2 from Baa3; the outlook is stable. MOORSIDE ELECTRICAL: Brings In John Bell as Administrator --------------------------------------------------------- John Bell of Clarke Bell was appointed administrator of Moorside Electrical Contractors Ltd. (Company Number 03494603) on Dec. 8, 2006. The administrator can be reached at: John Bell Clarke Bell Parsonage Chambers 3 The Parsonage Manchester Greater Manchester M3 2HW United Kingdom Tel: 0161 907 4044 Fax: 0161 907 4086 E-mail: clarkebell@mac56.com Moorside Electrical Contractors Ltd. can be reached at: 3 Hogarth Rise Oldham Lancashire OL1 4QD United Kingdom Tel: 0161 628 4545 NASDAQ STOCK: Seeks Shareholder Acceptance on Final LSE Offer ------------------------------------------------------------- The Board of The Nasdaq Stock Market Inc. disclosed that it is posting a document to Shareholders (other than certain Overseas Shareholders) in London Stock Exchange Group plc in response to the circular issued by LSE on Dec. 19, 2006. As stated in NASDAQ's announcements on Nov. 20, 2006, and Dec. 19, 2006, the NASDAQ Board believes that its Ordinary Offer of 1,243 pence per LSE Ordinary Share is a full and fair price. The Response Document highlights the reasons why LSE Shareholders should accept the Final Offers: -- the Ordinary Offer reflects a realistic assessment of standalone value, a full premium for control of 54% to the undisturbed price and a fair share of synergies; -- LSE Shareholders should not be misled by a simple emphasis on volume growth without price cuts, a defensive return of capital, or potential initiatives that could promote piecemeal co-operation or minority blocking stakes; -- the LSE fails to acknowledge growing customer dissatisfaction, new competitive threats introduced by upcoming regulatory changes, or accelerating consolidation of the exchange landscape; -- LSE Shares would be worth far less without NASDAQ, and a lapsing of the Final Offers is likely to precipitate a substantial fall in the share price; -- an LSE/NASDAQ combination is good for LSE stakeholders as it will reinforce London's pre-eminence as Europe's premier financial center and yield benefits to users, issuers and investors These factors have been recognized by long-term shareholders in LSE, who have voted with their feet and sold their shares. The imminent announcement of LSE's 2006 financials, which has been anticipated in press speculation, in no way changes the fact that LSE's value case has been entirely based on current and historical financial performance. However, the key issue is how LSE will react to the substantial future challenges that it will face in 2007 and beyond. The Response Document describes why Nasdaq believes the LSE is unprepared for those challenges ahead. Commenting on the Final Offers, NASDAQ President and CEO Robert Greifeld said: "The Final Offers represent full and fair value to existing LSE Shareholders, and the proposed LSE/NASDAQ combination presents a unique opportunity to create a global, balanced and scalable exchange business. Together with NASDAQ, the LSE will be better positioned to meet new and increasing challenges, including competing initiatives from customers, significant regulatory changes, and the recent wave of consolidation among powerful competitors. The LSE circular presented a weak case to Shareholders and offered no new important information." LSE Shareholders are urged to accept the Final Offers as you, rather than the LSE Board, will determine whether the Final Offers will be implemented. To accept the Final Offers in respect of LSE Shares held in certificated form (that is, not through CREST), holders should complete, sign and return the relevant Form(s) of Acceptance in accordance with the instructions thereon and the instructions in the Offer Document as soon as possible and, in any event, so as to be received no later than 3.00 p.m. London time on Jan. 11. To accept the Final Offers in respect of LSE Shares held in uncertificated form (that is, through CREST), holders should submit a TTE instruction in accordance with the instructions in the Offer Document for settlement as soon as possible and, in any event, by no later than 3.00 p.m. London time on Jan. 11. Copies of the Response Document, the Offer Document and Forms of Acceptance are available for collection (during normal business hours only) from Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, United Kingdom and Greenhill & Co. International LLP at Lansdowne House, 57 Berkeley Square, London W1J 6ER, United Kingdom. The Response Document will also be made available on http://www.nasdaq.com/ The Final Offers will not be revised except that NAL reserves the right to revise the Final Offers: (i) upon the recommendation of the LSE Board; or (ii) if a firm intention to make a competing offer for LSE is announced, whether or not subject to any preconditions. The Nasdaq Stock Market Inc. -- http://www.nasdaq.com/-- is the largest electronic equity securities market in the United States with approximately 3,200 companies. * * * In December 2006, Standard & Poor's Rating Services lowered its long-term counterparty credit rating on The Nasdaq Stock Market Inc. to 'BB' from 'BB+'. The 'BB+' rating on Nasdaq's existing bank loan facility, which financed the initial 29% stake in the London Stock Exchange (LSE), is affirmed, while the Recovery Rating is revised to '1' from '2'. The ratings were removed from CreditWatch Negative where they were placed on Nov. 20, 2006. S&P said the outlook is stable. At the same time, Standard & Poor's has assigned our 'BB+' bank loan rating to the proposed USUS$750 million senior secured Term Loan B, USUS$2.0 billion senior secured Term Loan C, and USUS$75 million revolver to be issued by Nasdaq, as well as the USUS$500 million senior secured Term Loan C to be issued by Nightingale Acquisition Ltd., a U.K.-based subsidiary of Nasdaq. The rating agency has assigned a Recovery Rating of '1', which indicates full recovery of principal in the event of default. In addition, Standard & Poor's has assigned its 'B+' rating to the proposed USUS$1.75 billion senior unsecured bridge loan to be issued by Nasdaq and NAL. Moody's Investors Service assigned in April 2006 ratings to three new bank facilities of The Nasdaq Stock Market Inc.: a USUS$750 million Senior Secured Term Loan B, a USUS$1,100 million Secured Term Loan C, and a USUS$75 million Senior Secured Revolving Credit Facility. Moody's said each facility is rated Ba3 with a negative outlook. SOLUTIA INC: Equity Committee Retains Experts For Pharmacia Case ---------------------------------------------------------------- In accordance with the order of the U.S. Bankruptcy Court for the Southern District of New York approving procedures for the retention of experts entered on Dec. 15, 2005, the Official Committee of Equity Security Holders of Solutia, Inc., filed separate notices of the retention of David O. Carpenter and Walter P. Schuetze, as experts in the adversary proceeding commenced by the Equity Committee against Monsanto Company and Pharmacia Corporation. The Debtors have consented to the retention of Messrs. Carpenter and Schuetze. Mr. Carpenter is knowledgeable on the effects of PCBs on human health and PCB regulation by federal and international agencies before September 1997. He has been retained to provide analyses and opinions regarding Pharmacia Corporation's, "Old Monsanto", knowledge of the distribution of and health effects of PCBs at the time of the spin-off of Solutia. Mr. Carpenter's analysis will focus on, among other things, the contrast between: * the facts in Old Monsanto's possession at the time of the spin related the human health effects of PCBs; and * the characterization of the risks by Old Monsanto in its spin related disclosure statements. Mr. Carpenter will be paid US$400 per hour and reimbursed for out-of-pocket expenses incurred in connection with his services. The Equity Committee also seeks the retention of Mr. Schuetze, an expert on Federal Accounting Standards Board Statement No. 5. He has been retained to provide analyses and opinions regarding Old Monsanto's compliance with FAS 5 at the time of the spin-off of Solutia from Old Monsanto based on statements contained in various spin-related disclosure documents, including the July 14, 1997 proxy statement seeking shareholder approval of the spin. The opinions will include Old Monsanto's spin-related compliance with FAS 5 as to the Anniston PCB toxic tort litigation and the disclosure and accrual of other legacy liabilities. Mr. Schuetze's analysis will focus on, among other things, the contrast between: * the facts in Old Monsanto's possession at the time of the spin related the economic risks that the legacy liabilities posed to the economic viability of Solutia; and * the characterization of the economic risks by Old Monsanto in its spin related disclosure statement. Mr. Schuetze will receive US$1,000 per hour and will be reimbursed for out-of-pocket expenses incurred in connection with the services. Reservation of Rights Pharmacia Corporation and Monsanto Company reserve any and all rights relating to the proposed witnesses, Messrs. Carpenter and Schuetze, beyond the mere issue of retention, including the right to object to the qualifications of each of the proposed witnesses; to the subject matter of the testimony purported to be given; to the admissibility of any testimony from the witnesses; and to the fees and expenses for the proposed witnesses under any standard. 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) TRIMCO COOLAIR: Brings In Administrators from Begbies Traynor ------------------------------------------------------------- D. Bailey and G. N. Lee of Begbies Traynor were appointed joint administrators of Trimco Coolair Ltd. (Company Number 02071973) on Dec. 20, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Stockport, England, Trimco Coolair Ltd. distributes wholesale refrigeration and catering equipment. WOODVALE EVENTS: Appoints I. E. Walker to Administer Assets ----------------------------------------------------------- I. E. Walker of Begbies Traynor was appointed administrator of Woodvale Events Ltd. (Company Number 03516250) on Dec. 12, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Woodvale Events Ltd. can be reached at: Pridhamsleigh Farm Pridhamsleigh Ashburton Newton Abbot Devon TQ13 7JJ United Kingdom Tel: 01364644432 * Fitch Says Stable Outlook at Risk in European Auto Industry ------------------------------------------------------------- Fitch Ratings states that the outlook for the European auto industry remains stable in 2007 but sees risks to this stability over the coming year. It expects the business environment to be extremely challenging for car manufacturers in 2007 and is concerned that this could jeopardize the positive results stemming from various measures taken by manufacturers recently. "Restructuring efforts and the success of new models will be crucial to limit market share erosion, improve cost structure, and maintain the stable outlook in Europe," says Emmanuel Bulle, director in Fitch's Industrials team. Fitch does not expect any help from demand-driven growth. European car manufacturers still derive the majority of their sales from their European domestic market, which is mature with low growth prospects. In Germany, a better economic environment should mitigate the effect from an increased value added tax in 2007, but a payback effect from the sales increase posted in 2006 is likely. Moderate growth in France and Italy should also mitigate the sales decline in Spain and the UK. Overall, sales are expected to be flat at best in 2007 across Western Europe, with any potential growth concentrated in the second half of the year. In this low-growth environment, Fitch views that competition, especially from Asian brands, will be a decisive feature driving the outlook for European groups. As Asian competitors adapt their offering ever more closely to consumer demands, European car manufacturers' ability to respond to their customers and offer exciting products is crucial to resisting the growing penetration of Japanese and Korean brands. Sharp competition will also lead to further pricing pressure as manufacturers fight for market share with incentives and discounts. Furthermore, car manufacturers will have to manage the expanding number of silhouettes and niche models and the shortening product life cycles, which require a greater ability from manufacturers to react to changing consumer preferences and continuous R&D. Other challenges include high R&D needs to comply with European regulations, especially emission regulations, raw materials price increases, and unfavorable foreign exchange rates. The strong euro is a serious hurdle for exporting manufacturers as they increasingly target markets outside of Europe. Fitch expects European groups to reap the benefit of the measures taken recently both on the revenue and cost sides. The strong focus put on markets outside of WE compensates for limited growth in manufacturers' domestic markets. In particular, while Fitch views that Renault SA's and Peugeot SA's market shares will continue to suffer across WE in 2007, this sales decline is likely to be offset by an increasing contribution from non-WE countries. At the same time, new products to be launched in Europe should help limit market share erosion and compensate for the declining sales due to more selective commercial policies. Several European OEMs have decided to cut lower-margin rental fleet and self-registrations. Cost saving measures will be of utmost importance again in 2007. In Fitch's view, cost-cutting actions will include further assembly capacity relocation outside of WE, improved economies of scale through technological tie-ups, and workforce rationalization. PSA has recently announced its plan to reduce overheads, rationalize its plants, and reduce capital expenditure and R&D. DaimlerChrysler's Mercedes car group division has announced similar measures to reduce assets and increase efficiency and flexibility to enhance revenues and margins. Renault's recovery plan calls for a 6% operating margin by 2009 on the back of incremental revenues, thanks to a product offensive starting in 2007 and improved efficiency. Fiat SpA expects to reach an operating margin between 2.6% and 3.4% for its automotive division by 2007 as it looks to build up on the success of the Grande Punto. Volkswagen Group is in the midst of a restructuring plan, which targets a profit before tax of EUR5.1 billion by 2008, i.e. a EUR4-billion increase on 2004 PBT. Although Fitch expects manufacturers to continue collaborating on specific projects and selective partnerships, it does not anticipate major tie-ups like the Renault/Nissan/GM project discussed in 2006. Most manufacturers are expected to continue to strengthen their balance sheets before embarking on major investments that may burden their financial profiles. Similarly, share buybacks are likely to be limited and free cash generation should be directed towards industrial investments and cash savings. * Fitch Keeps Neg. Credit Outlook for European Auto Suppliers ------------------------------------------------------------- Fitch Ratings said the outlook for the credit quality of the European automotive supply industry is overall negative. This view includes Fitch's privately rated leveraged finance issuers in this sector where more than 40% of the Issuer Default ratings carry a Negative Outlook. "While many leading suppliers continue to maintain stable credit profiles, the pressure on the industry has further intensified due to high raw material costs, growing competition from low- cost countries, and the ongoing low-growth environment," says Markus Leitner, director in Fitch's European Industrials team. "Suppliers are also facing unabated stress from car producers that are saddled with fierce competition, substantial overcapacity, and ongoing restructuring measures." Tyre producers such as Compagnie Generale des Etablissements Michelin that had historically absorbed higher costs by price rises in the replacement market were heavily hit by the high rubber prices in 2006. Despite some recent relief Fitch views that most suppliers continue to struggle with persistently high and volatile raw material costs that can only be partly shared with original equipment manufacturers. However, M&A- and LBO-related event risks aside, Fitch expects that well-positioned and innovative companies such as Robert Bosch GmbH, Continental AG, GKN, and Autoliv, Inc. will continue to see relatively stable credit quality. In contrast, U.S. auto suppliers are heavily affected by their exposure to the ailing U.S. auto producers General Motors Corp. and Ford Motor Company, as well as high structural and legacy costs. The mature car markets in Western Europe, the US, and Japan are expected to continue to see sluggish growth. Moreover, car manufacturers expect continuous innovation from their suppliers. As a result, strong but cost-intensive R&D resources are crucial to new product development, allowing for higher margins. Suppliers with a strong position in electronics technology will continue to take advantage from the ever-growing value of electronics components in cars. Considerable OEM investment in growth regions such as Eastern Europe has accelerated the pressure on the supply industry to offer a global presence. Suppliers are expected to follow OEMs to their global production facilities. At the same time, the shift in labor-intensive production towards low-cost countries has helped to reduce production costs. Such globalization strategies not only require substantial capital expenditure but also involve significant execution risks, particularly for smaller players with little or no experience of global structures. Fitch expects M&A activity to be particularly driven by suppliers keen to expand their geographical scope or acquire complementary high-quality assets to extend their technological footprint. Continental AG reiterated its plans to pursue further acquisitions following its purchase of the automotive electronics business of Motorola, Inc. for US$1 billion in 2006. At the same time, the agency notes that in 2006, Continental AG was approached by a private equity investor for a potential takeover bid. While this process has been terminated by mutual agreement, LBO risks remain. Another recent example is French supplier Valeo SA, which has signed a memorandum of understanding with Ford to acquire its thermal systems facility that generates sales of approximately US$450 million. Leveraged auto suppliers saw their credit quality deteriorate further during 2006, as higher input prices and ongoing pricing pressure from OEMs continued to take their toll. Manufacturers of mature and commodity-type products with limited added value have been the hardest hit, particularly those that still have the bulk of their production capacities in Western Europe. As a result of these challenges Fitch anticipates very limited recoveries for junior lenders in a distress scenario. ********* 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. 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