/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070131.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 31, 2007, Vol. 8, No. 22 Headlines A U S T R I A BULL POWER: Claims Registration Period End February 20 GAM LIEGENSCHAFTSVERWERTUNG: Claims Registration Ends Feb. 27 SOLARTEC LLC: Claims Registration Period Ends March 1 WELLCOM HAUSTECHNIK: Claims Registration Period Ends Feb. 9 C Y P R U S SHIP FINANCE: Sells Suezmax Tankers to Frontline for US$183.7MM F I N L A N D METSO OYJ: To Unveil Annual Results February 7 F R A N C E LECTA SA: Moody's Puts Low-B Ratings to Proposed EUR648-Mln Debt LECTA SA: S&P Gives B Rating to EUR175 Million Unsecured Notes PERNOD RICARD: GBL Group Acquires 5% Stake REMY COINTREAU: Diageo Eyes Possible Takeover Bid, Report Says REVLON INC: Completes US$100 Million Rights Offering G E R M A N Y ADLER-HEINRICH: Claims Registration Ends February 20 AKTIENBRAUEREI VILSBIBURG: Claims Registration Ends Feb. 15 AUENGRUND GMBH: Creditors Registration Ends Feb. 19 B2K ACCESSOIRES: Claims Registration Ends February 24 BENQ CORP: Bacoc Fails to Submit Bid for Bankrupt Mobile Unit BERND GUMTZ: Claims Registration Period Ends Feb. 26 C.N.-CARS: Claims Registration Period Ends March 5 CARIMPEX GMBH: Claims Registration Ends March 6 COMPUSTAR TECHNOLOGIES: Claims Registration Period Ends Feb. 23 CPT GMBH: Claims Registration Period Ends March 7 CWK INTEGRATED: Claims Registration Ends February 20 DAIMLERCHRYSLER: Sells Aviation Unit to ATON Group Subsidiary FA. NEININGER: Claims Registration Ends February 28 FRECHENER BACKHAUS: Claims Registration Ends February 22 GERHARD WIESE: Creditors Must Register Claims by February 22 GUENTER LUCHTMEIJER: Creditors Must Register Claims by Feb. 2 HORSTMANN LOGISTIK: Creditors Must Register Claims by March 7 IDEA-HAUS: Creditors' Meeting Slated for March 3 IOS ABWICKLUNGS: Claims Registration Ends March 2 JUNGBLUT-REISEN GMBH: Claims Registration Ends February 28 KBL-KUECHENVERTRIEBS GMBH: Claims Registration Ends February 20 OTOMAN LOGISTIC: Claims Registration Ends February 19 PEHAC MASINSPECT: Claims Registration Ends February 22 PRASIDENTEN PILS: Claims Registration Ends Feb 23 R & R BAUMASCHINENZENTRUM: Claims Registration Ends Feb. 20 R&S ALLGEMEINE: Creditors' Meeting Slated for Feb. 22 REVIER LOEWEN: Claims Registration Ends February 20 SCHULZE DOERING: Creditors' Meeting Slated for February 21 SGH SAATGUTVERTRIEBS: Claims Registration Ends February 21 SGH SAMENZUCHT: Claims Registration Ends February 21 SPIELE DISTRIBUTION: Claims Registration Ends February 16 STERNEN GASTRONOMIE: Claims Registration Ends February 23 STRZODA BEDACHUNGEN: Claims Registration Ends March 5 TANGENS VERWALTUNGS: Claims Registration Ends March 7 TOGOSTRASSE 11: Creditors' Meeting Slated for March 16 WARDWELL EUROPE: Creditors' Meeting Slated for February 21 G R E E C E ASPIS BANK: Fitch Affirms BB+ IDR with Stable Outlook I R E L A N D ZOO HF: S&P Assigns BB Rating to EUR5 Million Class E Notes I T A L Y UNIONFIDI: Weak Asset Quality Cues Fitch to Affirm Low-B Ratings K A Z A K H S T A N ADVERTISING-INFORMATIONAL: Claims Registration Ends March 9 AIDOSOV & K: Claims Registration Period Ends March 9 AK-BULAK TRADE: Claims Registration Period Ends March 9 ALORA OIL: Almaty Court Starts Bankruptcy Proceedings ALTAY SERVICE: Claims Registration Period Ends March 9 COMPANY PRINCIPE: Creditors Have Until March 9 to Submit Claims INNOVATION-CONSULTING: Claims Registration Period Ends March 9 MANGISTAU PROD: Claims Registration Period Ends March 9 SENIM-AUDIT: Claims Registration Period Ends March 9 K Y R G Y Z S T A N ASKA HOLDING: Creditors Must File Claims by March 16 L U X E M B O U R G LECTA SA: Moody's Puts Low-B Ratings to Proposed EUR648-Mln Debt LECTA SA: S&P Gives B Rating to EUR175 Million Unsecured Notes R O M A N I A TRANSELECTRICA SA: Moody's Lifts Ba1 Corp. Family Rating to Baa3 R U S S I A AGRO-COM CJSC: Creditors Must File Claims by February 13 CHERNYSHIKHINSKOYE OJSC: Bankruptcy Hearing Slated for April 10 CHIMEEVKSKIY SPRING: Bankruptcy Hearing Slated for April 25 FATEKS+ CJSC: Creditors Must File Claims by Feb. 13 KUEDINSKIY DIARY: Creditors Must File Claims by March 13 LUKOIL OAO: Unit Hikes 2006 Output by 51.2% to 5.3 Million Tons MAXI CJSC: Court Names S. Kurochkin as Insolvency Manager NEZHNEVARTOVSKIY CITY: Creditors Must File Claims by March 13 OB'-POLYMER CJSC: Asset Sale Slated for February 13 ORLYANSKOYE OJSC: Court Names I. Ryumin as Insolvency Manager POLYMER-PAK CJSC: Court Names Y. Kushenko as Insolvency Manager RAZDOLYE CJSC: Creditors Must File Claims by Feb. 13 ROSNEFT OIL: Russia Mulls Selling 25% Stake in Secondary Sale ROSNO OAO: Moody's Puts Ba1 Insurance Financial Strength Rating SIBERIAN BEARING: Creditors Must File Claims by March 13 SYLVA LLC: Creditors Must File Claims by February 13 SYNTHESIS A: Creditors Must File Claims by February 13 VOLTAYR-EKSIM CJSC: Creditors Must File Claims by March 13 S L O V E N I A ABANKA VIPA: Fitch Holds Individual C Rating in Neg. Outlook S P A I N CABLEUROPA SAU: S&P Holds B Credit Rating with Positive Outlook ONO FINANCE: S&P Junks Long-Term Senior Unsecured Debt S W E D E N DOLE FOOD: Moody's Cuts Low-B Ratings on Weak Performance STENA AB: Moody's Rates Proposed EUR300-Mln Notes at (P)Ba3 S W I T Z E R L A N D AMBER EXPORT: Creditors' Liquidation Claims Due February 12 ETOILES & VINS: Creditors' Liquidation Claims Due February 12 JMT TRADING: Creditors' Liquidation Claims Due February 12 NOVELIS INC: In Sale Talks; India-Based Group May Submit Offer PLANUNG - ARCHITEKTUR: Liquidation Claims Due February 12 PMT CONSULTING: Creditors' Liquidation Claims Due February 12 SWISSAIR: Former Top Executives Deny Any Wrongdoing in Collapse T U R K E Y MNG BANK: Fitch Holds D/E Rating on Weak Profitability U K R A I N E ELEKTROCOM LLC: Claims Submission Deadline Set February 10 GORLOVSKOE LLC: Claims Submission Deadline Set February 10 KHARKOV UAZ-SERVICE: Claims Submission Deadline Set February 10 KREDITPROMBANK: Moody's Withdraws B2 Rating on Postponed Sale KREMENNAYA FURNITURE: Claims Submission Deadline Set February 10 PERVOMAYSK SILUET: Claims Submission Deadline Set February 10 SMEREKA LLC: Claims Submission Deadline Set February 10 UKRSOTSBANK OJSC: S&P Puts B Prelim Rating to Sr. Unsecured Debt U N I T E D K I N G D O M A & J ENGINEERING: Names Liquidator to Wind Up Business ACME PAYROLL: Creditors' Meeting Slated for February 5 ADVANCE RECRUITMENT: Creditors' Meeting Slated for February 6 ABITIBI-CONSOLIDATED: Inks All-Stock Merger Deal with Bowater ABITIBI-CONSOLIDATED: Eyes Joint Venture for Ont. Power Plants ABITIBI-CONSOLIDATED: Moody's Holds B1 Corporate Family Rating BLACKSTREET LTD: Creditors' Meeting Scheduled for February 6 BLOSSOMS NOTTINGHAM: Creditors' Meeting Scheduled for February 8 BOWDEN GLASS: Appoints Tenon Recovery to Administer Assets BRITISH AIRWAYS: Resumes Normal Operations; Travel Loads Light BYTRONIC INTERNATIONAL: Claims Filing Period Ends February 27 CAMERON UK: Creditors' Meeting Scheduled for February 13 CANOPIUS MANAGING: Moody's Withdraws C+ Below Average Rating CHAPTER III: Creditors' Meeting Slated for February 13 CHRIS PELLING: G. W. Rhodes Leads Liquidation Procedure CIRCATEX GROUP: Claims Filing Period Ends March 31 COLINS BRIDEWELL: Brings In Liquidators from Harrisons COLLINS & AIKMAN: Court Approves North Pointe Lease Amendment CORE DISTRIBUTION: Liquidator Sets March 1 Claims Bar Date CORUS GROUP: Tata Steel Outbids CSN with GBP5.7 Billion Bid CREATION ADM: Names David N. Kaye as Administrator CREATION WINDOWS: Joint Liquidators Take Over Operations D & D SPORTS: Taps Jane Walker to Liquidate Assets D & S CONTRACTORS: Appoints Liquidator from Begbies Traynor DATACOM INSTALLATIONS: Creditors' Meeting Slated for February 7 DAVID MICHAEL: Brings In Begbies Traynor to Administer Assets DELTA GRAPHICS: Appoints Richard Long as Administrator DOCKGUARD ENGINEERING: Taps Administrators from Rothman Pantall DURA AUTOMOTIVE: Judge Carey OKs Kramer Levin as Panel's Counsel DURA AUTOMOTIVE: Court Okays Chanin Capital as Panel's Advisor ECLIPSE MOTOR: Creditors' Meeting Scheduled for February 6 ENRON GAS: Creditors Confirm Liquidators' Appointment EPITOME LEISURE: Brings In Administrators from Grant Thornton EURO SHEET: Appoints Cresswall Associates as Administrators EXPELBECK LTD: Creditors' Meeting Scheduled for February 7 FASCIA MANIA: Westminster Bank Taps Begbies Traynor as Receivers FINELINE SHOPFITTERS: Creditors' Meeting Slated for February 7 FIRST CLASS: Brings In Administrators from Antony Batty FITZROY GREEN: Creditors' Meeting Scheduled for February 15 FONIX LTD: Taps Joint Administrators from KPMG LLP FORD MOTOR: U.S. Market Rank May Fall by Two Notches, CEO Says FORD MOTOR: Loss Wasn't A Surprise, Says UAW President FREIGHT CARE: Creditors Confirm Voluntary Liquidation GARDEN HOUSE: Taps Begbies Traynor to Administer Assets GAVIN CONSTRUCTION: Appoints Administrators from F A Simms GLOBAL HIGH: Moody's Assigns B Bond Fund Credit Rating GOLBORNE DEVELOPMENTS: Creditors' Meeting Slated for February 13 HOMERTON TYRES: Joint Liquidators Take Over Operations HYTYME MANAGEMENT: Appoints Liquidators from Vantis J W S LANDSCAPES: Claims Filing Period Ends February 9 KINGSWAY DECORATORS: Creditors' Claims Due March 2 LIGHTWAVE LTD: Hires Liquidator from UHY Hacker Young MUSIC ZONE: Administrator Unable to Find Buyer; Closes 72 Stores NASDAQ STOCK: Keeps Bid for LSE at US$24.42 Per Share NTL INC: Simon Duffy Resigns as Executive Vice Chairman PRESTIGE & POWER: Names Peter Sargent Liquidator PROOF FOUR: Calls In Liquidator from AlexanderLawsonJacobs RANK GROUP: Prudential Holds 7.62% Non-Material Equity Interest RAVENTHORPE ESTATES: Claims Filing Period Ends February 23 RAW ROAR: Creditors' Meeting Slated for February 20 READER'S DIGEST: Earns US$62 Million in Second Quarter 2006 REFCO INC: Files December 2006 Monthly Operating Report ROLFE RESIDENTIAL: Ian Franses Leads Liquidation Procedure ROOMS WITH A VIEW: Taps Liquidators from Begbies Traynor SIMPLITE CITY: Names Tim Alexander Clunie Liquidator SOLUTIA INC: Balks at Panel's Intervention on Calpine Talks STANTON JOINERY: Creditors' Meeting Slated for February 16 * Europe Credit Cycle to Worsen Till Mid-2007, Moody's Reports ********* ============= A U S T R I A ============= BULL POWER: Claims Registration Period End February 20 ------------------------------------------------------ Creditors owed money by LLC Bull Power Aufbereitungstechnik (FN 272373z) have until Feb. 20 to file written proofs of claim to court-appointed property manager Martin Hengstschlager at: Mag. Martin Hengstschlager Fadingerstr. 9/2 4020 Linz, Austria Tel: 78 40 80-0 Fax: 78 40 80-4 E-mail: office@hengstschlaeger-lindner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on March 6 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 5th Floor Linz, Austria Headquartered in Haid bei Ansfelden, Austria, the Debtor declared bankruptcy on Jan. 9 (Bankr. Case No. 38 S 2/07h). GAM LIEGENSCHAFTSVERWERTUNG: Claims Registration Ends Feb. 27 ------------------------------------------------------------- Creditors owed money by LLC GAM Liegenschaftsverwertung (FN 166095h) have until Feb. 27 to file written proofs of claim to court-appointed estate administrator Matthias Schmidt at: Dr. Matthias Schmidt c/o Dr. Florian Gehmacher Dr. Karl Lueger-Ring 12 1010 Vienna, Austria Tel: 533 16 95 Fax: 535 56 86 E-mail: schmidt@preslmayr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on March 13 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 9 (Bankr. Case No. 3 4 S 7/07t). Florian Gehmacher represents Dr. Schmidt in the bankruptcy proceedings. SOLARTEC LLC: Claims Registration Period Ends March 1 ----------------------------------------------------- Creditors owed money by LLC Solartec (FN 131132t) have until March 1 to file written proofs of claim to court-appointed estate administrator Clemens Michael Schnelzer at: Dr. Clemens Michael Schnelzer Dr.-Franz-Weismann-Road 19 3910 Zwettl, Austria Tel: 02822/53953 Fax: 02822/53953-18 E-mail: dr.schnelzer@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on March 14 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A 2nd Floor Krems an der Donau, Austria Headquartered in Grossgerungs, Austria, the Debtor declared bankruptcy on Jan. 3 (Bankr. Case No. 9 S 2/07b). WELLCOM HAUSTECHNIK: Claims Registration Period Ends Feb. 9 ----------------------------------------------------------- Creditors owed money by LLC Wellcom Haustechnik (FN 238212m) have until Feb. 9 to file written proofs of claim to court- appointed estate administrator Sabine Wintersberger at: Dr. Sabine Wintersberger c/o Mag. Peter Vogl Claudistrasse 5 4910 Ried/Innkreis, Austria Tel: 07752/82 4 09 Fax: 07752/80 1 25 E-mail: office@puttinger-vogl.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Feb. 21 for the examination of claims. The meeting of creditors will be held at: The Land Court of Ried im Innkreis Hall 101 1st Floor Ried im Innkreis, Austria Headquartered in Aurolzmuenster, Austria, the Debtor declared bankruptcy on Dec. 28, 2006 (Bankr. Case No. 17 S 47/06b). Peter Vogl represents Dr. Wintersberger in the bankruptcy proceedings. =========== C Y P R U S =========== SHIP FINANCE: Sells Suezmax Tankers to Frontline for US$183.7MM ------------------------------------------------------------- Ship Finance International Ltd. has agreed to sell five vessels to Frontline Ltd. in connection with Frontline's proposed spin- off of Sealift Ltd., a dedicated heavy-lift company. The vessels are the single hull suezmax tankers Front Comor, Front Granite, Front Target and Front Traveller, in addition to Front Sunda, which is currently under conversion to a heavy-lift vessel. Delivery to the Buyer is expected to take place during the first quarter of 2007. The gross sales price for the five vessels is US$183.7 million, and Ship Finance will receive a net amount of around US$121 million after compensation of around US$62 million to Frontline for the termination of the charters. There are currently US$14.2 million in aggregate loans outstanding against the five vessels, and the net cash effect to Ship Finance is estimated to be around US$107 million. Following these sales, Ship Finance will only have 11 single hull vessels remaining in the fleet, including three vessels with double sides. This is significantly less than the 18 single hull vessels owned only three months ago. Of the remaining crude oil tankers without double hull, Frontline has, as charterer, secured profitable sub-charters for seven of the vessels, and only four of the vessels are traded in the spot market. The reduction of the single hull tanker exposure is in line with the Company's strategy of focusing on modern assets in various shipping and offshore market segments. The cash proceeds from the sales is intended to be re-invested as equity contribution in new projects, and the management of Ship Finance estimates that the combination of sales proceeds, expected profit share from Frontline for the year 2006, undrawn amounts under our credit lines and available cash on our balance sheet may facilitate additional investments in excess of US$1 billion. Including new buildings and recently announced acquisitions and sales, the Company's fleet will consist of 55 vessels, essentially all on medium to long-term charters. About Ship Finance Headquartered in Bermuda, Ship Finance International Ltd. -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The Company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * In a TCR-Europe report on Dec. 7, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Bermuda-based Ship Finance International Ltd., a ship-owning company tied to Frontline Ltd., to 'BB' from 'BB-'. The outlook is stable. At the same time, S&P raised its senior unsecured debt rating on Ship Finance's US$580-million bonds to 'B+' from 'B'. As reported in the TCR-Europe on Nov. 16, 2006, Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. ============= F I N L A N D ============= METSO OYJ: To Unveil Annual Results February 7 ---------------------------------------------- Metso Oyj will publish its 2006 financial statements at noon on Feb. 7, Finnish time. A news conference will be held on the same date at: -- 8:00 a.m. U.S. EST -- 1:00 p.m. U.K. time -- 2:00 p.m. CET -- 3:00 p.m. Finnish time, EET at the company's headquarters at: Metso Oyj Corporate Office Fabianinkatu 9 A Helsinki Finland Conference call participants are requested to call in a few minutes prior to the start of teleconference in U.S.: +1 334 420 4951 other: +44 (0)20 7162 0125 A replay is available for 48 hours after the conference in: U.S.: +1 954 334 0342 (access code: 681 846) other: +44 (0)20 7031 4064 (access code: 681 846) About Metso Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of around EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom and the United States. * * * As reported on April 11, 2006, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. =========== F R A N C E =========== LECTA SA: Moody's Puts Low-B Ratings to Proposed EUR648-Mln Debt ---------------------------------------------------------------- Moody's Investors Service assigned to Lecta S.A.: -- a Ba3 Corporate Family Rating; -- a provisional (P)Ba3 to the proposed EUR473-million Senior Secured Floating Rate Notes due 2014; and -- a provisional (P)B1 to the proposed EUR175-million Senior Unsecured Floating Rate Notes due 2014. The outlook for all ratings is stable. "The Ba3 CFR is a reflection of Lecta's leading market positions in its core South European markets of coated wood free paper, the well-managed asset base, the favorable product mix as well as the expectation of an industry-wide price recovery in the latter half of 2007, which should help to bolster the company's financial profile going forward," said Martin Kohlhase, Moody's lead analyst for the European pulp and forest products industry. However, the rating remains constrained primarily by: (i) the low degree of pulp integration exposing the company to periods of high pulp prices; (ii) the private equity shareholder, which over the last 10 years has been very supportive to Lecta's financial profile -- no significant dividend payments, moderate leverage, support of a sizeable capex program in the last few years. Moody's is cautious to what extent the shareholder would show similar restraint, albeit within the limits of the bond documentation, in the face of strengthened cash flows, which could limit the positive impact of a potential industry recovery for Lecta. The stable outlook on Lecta's ratings incorporates the expectation -- but is not conditional to -- a price recovery for coated paper grades following capacity closures in Europe, which should be the primary driver to a strengthening financial profile, given that the company already operates at a very efficient level. Throughout 2007 Moody's also does not expect that volatile input prices -- energy and pulp being the dominant variables -- should have a similarly negative impact as over the past two years. At the same time, Moody's said that the assigned ratings incorporate the possibility of either a marginally more shareholder-friendly dividend and capital structure policy or some weakening of Lecta's financial profile due to pulp or paper price fluctuations. Apart from bolt-on acquisitions in the paper distribution business in its core South European markets and the co-generation plant in Italy, Moody's has not factored into the rating any large debt-financed acquisitions or larger capital expansion programs. Lecta will use the proceeds from the issuance of the bonds, EUR648-million, to repay existing credit facilities of EUR748.5- million and will simultaneously enter into an agreement for a EUR100-million bridge facility for a securitization program. A new, EUR75-million multi currency revolving credit facility of which EUR60-million will be committed, is expected to be un- drawn at signing and only moderately used over the coming 12- month period. The revolver will be secured by shares, certain bank accounts and receivables, and will be guaranteed by Lecta's main operating companies. The proposed secured and unsecured notes are both issued by Lecta S.A., a holding company and are guaranteed on a secured/unsecured basis by all major subsidiaries with the exception of the French operating entity Condat S.A. Due to the security provided in support of the secured notes over substantially the same assets as the revolver and the relatively small amount of the senior secured bank and hedging transaction debt, the secured notes have been rated at the same level as the CFR. The senior unsecured notes will be effectively subordinated to all liabilities, including those to trade creditors, and have been rated one notch below the CFR. Lecta S.A., with legal headquarters in Luxembourg and its main domicile in Paris/France, is a leading coated wood free paper manufacturer in Spain, Italy and France. The company also has a Specialty paper division and distribution business in the Iberian market. During the first nine months of 2006 Lecta recorded sales of EUR1.43 billion and employed around 4,700 people per Dec. 31, 2006. LECTA SA: S&P Gives B Rating to EUR175 Million Unsecured Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term and 'B' short-term corporate credit ratings to Luxembourg-based paper manufacturer Lecta S.A. The outlook is stable. At the same time, EUR473 million in proposed senior secured floating rate notes and EUR175 million in proposed senior unsecured floating rate notes were assigned long-term issue credit ratings of 'BB-' and 'B', respectively. The secured issue was assigned a recovery rating of '3'. "The ratings on Lecta reflect its exposure to the cyclical, competitive, and currently challenging European coated fine paper market," said Standard & Poor's credit analyst Andreas Zsiga. The group's financial risk profile is aggressive with debt protection measures that are currently weak for the rating. This is partly offset by the group's good market position, competitive and efficient asset base, proximity to key end- markets, and prospects for medium-term market improvement. The stable outlook reflects the expectation that Lecta's debt protection measures will improve. Ratings upside is very limited given the company's current underperformance. Factors that could result in an upgrade include further significant and sustainable deleveraging and cash flow improvement. Factors that could result in a downgrade include a protracted market downturn with sustained pressure on margins and cash flows. Any recapitalization resulting in higher debt leverage, or debt- funded acquisitions would be considered event risk and would be negative. PERNOD RICARD: GBL Group Acquires 5% Stake ------------------------------------------ The GBL Group has acquired a 5% stake in Pernod-Ricard, the Financial Times reports. GBL is identified with Belgian financier Albert Frere and Canadian Paul Desmarais. "This participation has been built up in full transparency between its chairman, Patrick Ricard, and the families Frere/Desmarais, which keep up an old and excellent relationship," GBL said. The Ricard family holds about 11% stake in the company, the Financial Times relates. About Pernod Ricard Headquartered in Paris, France, Pernod Ricard -- http://www.pernod-ricard.com/-- produces and distributes spirits and wines. The Company operates in Europe, North America, Central and South America, and the Asia-Pacific region. Nearly 90% of the Company's sales are generated outside France. Pernod Ricard has seven principal sectors: Whiskies, Anise Drinks, Liqueurs, Cognacs & Brandies, White Spirits & Rums, Bitters and Wines. Pernod Ricard has a decentralized structure that is divided between brand owner subsidiaries, such as Ricard, Irish Distillers and Chivas Brothers, which produce and develop marketing strategies for the brands, and regional distribution subsidiaries, such as Pernod Ricard Europe, which implement marketing strategies and distribute local brands. The Company's key brands include Ricard, Havana Club, Stolichnaya, Martell, Malibu, Chivas Regal, Jameson and Jacobs Creek. In 2005 Pernod Ricard acquired Allied Domecq. * * * As reported in the TCR-Europe on Nov. 21, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on French spirits manufacturer and marketer Pernod Ricard S.A. to 'BB+' from 'BB' following quicker-than-expected integration of acquired businesses and improved profitability prospects. At the same time, the 'B' short-term corporate credit rating was affirmed. S&P said the outlook is stable. REMY COINTREAU: Diageo Eyes Possible Takeover Bid, Report Says -------------------------------------------------------------- Drinks maker Diageo plc may bid for France's Remy Cointreau in an effort to boost its presence in China's growing market, The Scotsman reports. Sources speculate that Diageo mulls dissolving its joint venture with LVMH (Moet Hennessy - Louis Vuitton) to make room for a possible GBP450 million bid for Remy, Scotsman relates. "It makes very good sense. Remy Cointreau are well established in China with very attractive distribution channels and some luxury brands in cognac and wine that have very good growth potential," an analyst told Scotsman. According to the report, Remy Cointreau is enjoying increased popularity in China and Russia, two of the world's fastest growing markets for wines and spirits. In December 2006, analysts have suggested a probable takeover bid for the family-controlled distiller, hinting to The Wall Street Journal that bidders could include Brown-Forman Corp., Bacardi & Co., Constellation Brands Inc. and Diageo plc. In a report by the Troubled Company Reporter-Europe on Dec. 15, Dominique Heriard Dubreuil, chairperson for Remy Cointreau, quelled the rumors of a possible sale. Ms. Heriard Dubreuil, who is one of four family members holding a controlling stake in the group, told Adam Jones of the Financial Times last month that there was no desire to sell the business "because of a belief that Remy Cointreau will increase in value in the years to come." This bidding speculation was fueled by the company's decision to terminate the Maxxium Global Distribution Agreement effective March 30, 2009, which would enable Remy Cointreau to consider alternative distribution options in priority markets such as Asia. Remy CEO Jean-Marie Laborde said its decision to leave Maxxium came after dissatisfaction with its performance in Asia, FT reported. Family members have backed Mr. Laborde's strategy, which has led the company to focus more on the top end of the drinks market. Headquartered in Cognac, France, Remy Cointreau -- http://www.remycointreau.com/-- offers a range of premium wine and spirit brands, known and recognized throughout the world. These brands include, among others, Remy Martin, Cointreau, Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper- Heidsieck. * * * Remy Cointreau's senior unsecured debt carries a Ba2 rating from Moody's Investors Service since 2003. Standard & Poor's rated the Company's issuer credit at BB- in 2004. REVLON INC: Completes US$100 Million Rights Offering ---------------------------------------------------- Revlon Inc. completed its over-subscribed US$100 million rights offering and the related private placement it launched on Dec. 18, 2006, with public shareholders seeking to subscribe for about 72 million shares, which was around 34 million shares in excess of the 37,847,472 shares sold to the public in the rights offering at US$1.05 per share. MacAndrews & Forbes Holdings Inc., Revlon's majority stockholder, which is wholly-owned by Ronald O. Perelman, has purchased in a private placement directly from Revlon a total of 57,390,623 shares of Revlon's Class A common stock, pursuant to a previously-disclosed Stock Purchase Agreement between Revlon and MacAndrews & Forbes, at the same price of US$1.05 per share, representing the number of shares that MacAndrews & Forbes would otherwise have been entitled to subscribe for in the rights offering pursuant to its basic subscription privilege. The shares sold to MacAndrews & Forbes were sold in reliance on Rule 506 under the Securities Act of 1933, as amended. The issuance of shares to MacAndrews & Forbes was not registered under the Securities Act of 1933, as amended, and, accordingly, such shares may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. As a result of these transactions, Revlon will have issued a total of 95,238,095 new shares of its Class A common stock, increasing the number of outstanding shares of Revlon's Class A common stock to 476,688,940 shares and increasing the total number of shares of common stock outstanding, including the company's existing 31,250,000 shares of Class B common stock, to 507,938,940 shares. With the completion of these transactions, MacAndrews & Forbes beneficially owns around 58% of Revlon's Class A common stock and around 60% of Revlon's total common stock outstanding, which shares represent around 74% of the combined voting power of such shares. Revlon also announced that Revlon Consumer Products Corp., Revlon's wholly owned operating subsidiary, will use around US$50 million of the proceeds of the rights offering and related private placement to redeem around US$50 million aggregate principal amount of its 8 5/8% Senior Subordinated Notes due 2008, at a redemption price of 100% of the principal amount of such Notes, plus accrued and unpaid interest up to, but not including, the redemption date. In addition, Revlon announced that on or about Jan. 25, 2007, RCPC used the remainder of such proceeds to repay around US$43 million of indebtedness outstanding under RCPC's US$160 million revolving credit facility (which represented all of the indebtedness outstanding under this facility at that time), without any permanent reduction in that commitment, after paying fees and expenses incurred in connection with the rights offering and related private placement, with the remaining around US$5 million available for general corporate purposes. About Revlon Revlon Inc. (NYSE: REV) -- http://www.revloninc.com/-- is a cosmetics, skin care, fragrance, and personal care products company. The Company's brands include Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R), Flex(R), and Mitchum(R). At Sept. 30, 2006, Revlon Inc.'s balance sheet showed US$925 million in total assets and US$2.1 billion in total liabilities, resulting in a US$1.2 billion stockholders' deficit. Headquartered in New York, Revlon Consumer Products Corp. is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company is a wholly owned subsidiary of Revlon Inc., which in turn is majority-owned by MacAndrews and Forbes, which is wholly owned by Ronald O. Perelman. * * * As reported in the TCR-Europe on Oct. 2, 2006, Moody's Investors Service lowered Revlon Consumer Products Corp.'s long-term ratings, including the corporate family rating to Caa1 from B3. Moody's affirmed the company's speculative grade liquidity rating of SGL-4. Moody's said the outlook remains negative. As reported in the Troubled Company Reporter on Sept. 27, 2006, Standard & Poor's Ratings Services lowered all of its ratings on New York City-based Revlon Consumer Products Corp., including its corporate credit rating, to 'CCC+' from 'B-'. S&P said the outlook is negative. ============= G E R M A N Y ============= ADLER-HEINRICH: Claims Registration Ends February 20 ---------------------------------------------------- Creditors of Adler-Heinrich Blockfloetenbau GmbH have until Feb. 20 to register their claims with court-appointed insolvency manager Andreas Schenk. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 28 Law Courts Prince Road 21 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Chemnitz opened bankruptcy proceedings against Adler-Heinrich Blockfloetenbau GmbH on Jan. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Adler-Heinrich Blockfloetenbau GmbH Dietrich Hahl, Manager Pestalozzistrasse 25 08258 Markneukirchen Germany The insolvency manager can be reached at: Andreas Schenk Franz-Mehring-Road 15 08058 Zwickau Germany Tel: (0375) 211 857 0 Fax: (0375) 211 857 28 AKTIENBRAUEREI VILSBIBURG: Claims Registration Ends Feb. 15 ----------------------------------------------------------- Creditors of Aktienbrauerei Vilsbiburg AG i.L. have until Feb. 15 to register their claims with court-appointed insolvency manager Alexander Saponjic. Creditors and other interested parties are encouraged to attend the meeting at 8:20 a.m. on March 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Landshut Meeting Room 9/I Insolvency Court Maximilianstrasse 22-24 Landshut Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Landshut opened bankruptcy proceedings against Aktienbrauerei Vilsbiburg AG i.L. on Jan. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Aktienbrauerei Vilsbiburg AG i.L. Veldener Str. 5 84137 Vilsbiburg Germany The insolvency manager can be reached at: Alexander Saponjic Bachstr 6 84036 Landshut Germany Tel: 0871/943210 Fax: 0871/9432150 AUENGRUND GMBH: Creditors Registration Ends Feb. 19 --------------------------------------------------- Creditors of Auengrund GmbH have until Feb. 19 to register their claims with court-appointed insolvency manager Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 19, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 12th Floor Luxemburger Road 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Auengrund GmbH on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auengrund GmbH Attn: Alexander Jahn Altenberger-Dom-Str. 2 a 51519 Odenthal Germany The insolvency manager can be reached at: Jana Dettmer Weyerstrasse 54 50676 Cologne Germany Tel: 0221/92 12 17-0 Fax: +4922192121720 B2K ACCESSOIRES: Claims Registration Ends February 24 ----------------------------------------------------- Creditors of B2K Accessoires GmbH have until Feb. 24 to register their claims with court-appointed insolvency manager Dr. Hans- Gert Dhonau. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Kreuznach Hall 309 Ringstrasse 79 55543 Bad Kreuznach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bad Kreuznach opened bankruptcy proceedings against B2K Accessoires GmbH on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B2K Accessoires GmbH Industriestr 10 55606 Kirn Germany Attn: Christiane Brunk, Manager 55743 Idar-Oberstein Germany The insolvency manager can be reached at: Dr. Hans-Gert Dhonau Bahnhofstr 7 55566 Bad Sobernheim Germany Tel: 06751/938013 Fax: 06751/9380-36 BENQ CORP: Bacoc Fails to Submit Bid for Bankrupt Mobile Unit ------------------------------------------------------------- Bacoc, the German laptop computer company, failed to submit an offer for BenQ Mobile GmbH & Co. OHG, the bankrupt German unit of Taiwan-based BenQ Corp., after creditors rejected bids by two potential buyers earlier in the month, John Blau of IDG News Service reports. Bacoc has been rumored to acquire BenQ's bankrupt mobile unit, eyeing a two-third reduction of the company's work force and planning to retain the firm's facility in Kamp-Lintfort in North Rhine-Westphalia and close down the central office in Munich. According to Germany's Handelsblatt newspaper, Bacoc plans to expand its product range to include mobile phones, targeting sales of 4.5 million units in 2007. A spokesperson for insolvency administrator Martin Prager said creditors have yet to reach an agreement on a possible rescue plan, although talks with interested bidders still continue. Investor group SF Capital Partners, led by Hansjoerg Beha, a former Daimler-Benz executive, pulled out of the bidding race last week, with sources speculating that the group could not raise the required funding needed for the acquisition, Mobile Today reports. As reported in the Troubled Company Reporter-Europe on Jan. 25, Sentex Sensing Technology Inc. submitted a EUR52 million bid for BenQ Mobile's assets. Henrik Rubenstein, Sentex's chief executive officer, told Dow Jones Newswires that the bid is based on an earn-out model, which would base payments on BenQ Mobile's financial success in the future. He added that the company had secured a "three-digit million euro sum" of working capital financing. "We are not too optimistic but we will see what happens by the end of the month," Regine Petzsch, spokeswoman for administrators Pluta Rechtsanwalts GmbH told Mobile Today. "We do not think that Sentex's interest is to be taken too seriously. No one is able to take on the risks so there is not much hope for the business." Creditors have not set a deadline to end sale talks with interested parties. However, Mr. Prager's spokesman said, the sooner a rescue plan is found, the better, IDG News Service relates. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., 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, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. 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. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's: * continuing operating losses from its handset operations; * high leverage; and * the competitive nature and low profitability of the LCD monitor industry. BERND GUMTZ: Claims Registration Period Ends Feb. 26 ---------------------------------------------------- Creditors of Bernd Gumtz GmbH have until Feb. 26 to register their claims with court-appointed insolvency manager Heiko Fialski. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Reinbek Park Avenue 6 21465 Reinbek Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Reinbek opened bankruptcy proceedings against Bernd Gumtz GmbH on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bernd Gumtz GmbH Attn: Bernd Gumtz, Manager Technologiepark 11 22946 Trittau Germany The insolvency manager can be reached at: Heiko Fialski Raboisen 38 20095 Hamburg Germany C.N.-CARS: Claims Registration Period Ends March 5 -------------------------------------------------- Creditors of C.N.-Cars GmbH have until March 5 to register their claims with court-appointed insolvency manager Jens Koeke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 4, at which time the insolvency manager 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 insolvency manager'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 C.N.-Cars GmbH on Dec. 20, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: C.N.-Cars GmbH Attn: Tassilo Busch, Manager Am Kalten Born 39 37085 Goettingen Germany The insolvency manager can be reached at: Jens Koeke Obere Karspuele 36 37073 Goettingen Germany Tel: 0551/5085920 Fax: 0551/5085921 CARIMPEX GMBH: Claims Registration Ends March 6 ----------------------------------------------- Creditors of Carimpex GmbH have until March 6 to register their claims with court-appointed insolvency manager Jens Lieser. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Kreuznach Hall 34 Ringstrasse 79 55543 Bad Kreuznach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bad Kreuznach opened bankruptcy proceedings against Carimpex GmbH on Jan. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Carimpex GmbH Attn: Arno Pies, Manager Bahnhofstr. 54a 56288 Kastellaun Germany The insolvency manager can be reached at: Jens Lieser Josef Goerres Place 5 56068 Koblenz Germany Tel: 0261/30479-0 Fax: 0261/9114729 E-mail: info@lieser-rechtsanwaelte.de COMPUSTAR TECHNOLOGIES: Claims Registration Period Ends Feb. 23 --------------------------------------------------------------- Creditors of CompuStar Technologies GmbH & Co.KG have until Feb. 23 to register their claims with court-appointed insolvency manager Manfred Vellmer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 16, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Boardroom 101 B First Floor Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against CompuStar Technologies GmbH & Co. KG on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CompuStar Technologies GmbH & Co. KG Zum Kaiserbusch 7 48165 Muenster Germany Attn: Ralf Klostermann, Manager Im Konvent 8 47839 Krefeld und Stefan Dissel Gasselstiege 492 48159 Muenster Germany The insolvency manager can be reached at: Manfred Vellmer Rothenburg 20/21 48143 Muenster Germany Tel: 0251/511801 Fax: +492519277785 CPT GMBH: Claims Registration Period Ends March 7 ------------------------------------------------- Creditors of CPT GmbH Deutschland have until March 7 to register their claims with court-appointed insolvency manager Marcello Di Stefano. Creditors and other interested parties are encouraged to attend the meeting at 1:10 p.m. on April 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Meiningen Hall A 0105 Linden Avenue 15 Meiningen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Meiningen opened bankruptcy proceedings against CPT GmbH Deutschland on Jan. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CPT GmbH Deutschland Attn: Martin Milz, Manager Pfuetschbergstrasse 11 98527 Suhl Germany The insolvency manager can be reached at: Marcello Di Stefano Jonny-Schehr-Str. 1 99085 Erfurt Germany CWK INTEGRATED: Claims Registration Ends February 20 ---------------------------------------------------- Creditors of CWK Integrated IT Solutions GmbH & Co. KG have until Feb. 20 to register their claims with court-appointed insolvency manager Dr. Alexander Hoepfner. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Room 4.312 4th Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Darmstadt opened bankruptcy proceedings against CWK Integrated IT Solutions GmbH & Co. KG on Jan 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CWK Integrated IT Solutions GmbH & Co. KG Attn: Sigrid Engelhardt, Manager Anne Frank 8 68519 Viernheim Germany The insolvency manager can be reached at: Dr. Alexander Hoepfner Darmstadter Str. 43 64646 Heppenheim Germany Tel: 06252-6739988 Fax: 06252-6739989 DAIMLERCHRYSLER: Sells Aviation Unit to ATON Group Subsidiary ------------------------------------------------------------- DaimlerChrysler AG has sold DaimlerChrysler Aviation GmbH, its Stuttgart-based 100% subsidiary, to a subsidiary of ATON GmbH in Fulda, Germany. The transaction is subject to the approval of the relevant antitrust and aviation authorities and will be completed in the first quarter of 2007. The parties have agreed to keep the purchase price confidential. The sale is part of the measures currently being taken to increase efficiency and optimize the Group's portfolio with the goal of improving the return on net assets. DaimlerChrysler Aviation GmbH primarily provides tailored air- transport services to business travelers and currently employs around 200 persons. In 2006, DCA generated revenues with companies of the DaimlerChrysler Group and third parties of around EUR65 million. ATON GmbH makes long-term investments in innovative companies in the future-oriented fields of raw materials, services and applied technology. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. Outlook As reported in the TCR-Europe on Oct. 30, 2006, DaimlerChrysler said it expects a slight decrease in worldwide demand for automobiles in the fourth quarter and thus slower market growth than in Q4 2005. For full-year 2006, the company anticipates market growth of around 3%. It expects unit sales in 2006 to be lower than in the previous year (4.8 million units). On Sept. 15, 2006, DaimlerChrysler reduced the Group's operating profit target for 2006 to US$6.3 billion. Although the company now has to assume that the profit contribution from EADS will be US$0.3 billion lower than originally anticipated because of the delayed delivery of the Airbus A380, DaimlerChrysler is maintaining this earnings target due to very positive business developments in the divisions Mercedes Car Group, Truck Group and Financial Services. FA. NEININGER: Claims Registration Ends February 28 --------------------------------------------------- Creditors of Fa. Neininger GmbH have until Feb. 28 to register their claims with court-appointed insolvency manager Andreas Fischer. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on March 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Baden-Baden 009a Ground Floor Gutenbergstr. 17 76532 Baden-Baden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Baden-Baden opened bankruptcy proceedings against Fa. Neininger GmbH on Jan. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fa. Neininger GmbH Attn: Wolfgang Neininger, Manager Industriestr. 2 76473 Iffezheim Germany The insolvency manager can be reached at: Andreas Fischer Kriegsstr. 25 76133 Karlsruhe Germany FRECHENER BACKHAUS: Claims Registration Ends February 22 -------------------------------------------------------- Creditors of Frechener Backhaus M. U. GmbH have until Feb. 22 to register their claims with court-appointed insolvency manager Ulrich Kuehn. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 1240 12th Floor Luxemburger Road 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Frechener Backhaus M. U. GmbH on Jan. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Frechener Backhaus M. U. GmbH Attn: Baronin Hildegard Monika von Stromburg and Uwe Nieswandt, Managers Ernst-Heinrich-Geist-Str. 26 50226 Frechen Germany The insolvency manager can be reached at: Ulrich Kuehn Riehler Str. 26 50668 Cologne Germany GERHARD WIESE: Creditors Must Register Claims by February 22 ------------------------------------------------------------ Creditors of Gerhard Wiese Foerdertechnik GmbH have until Feb. 22 to register their claims with court-appointed insolvency manager Dr. Olaf Buechler. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on March 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 (Civil Law Courts) 4th Floor Anbau Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Gerhard Wiese Foerdertechnik GmbH on Jan. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gerhard Wiese Foerdertechnik GmbH Humboldtstrasse 57 - 59 22083 Hamburg Germany Attn: Angela Elfriede, Manager Oktaviostrasse 129 22043 Hamburg Germany The insolvency manager can be reached at: Dr. Olaf Buechler Herrengraben 3 20459 Hamburg Germany GUENTER LUCHTMEIJER: Creditors Must Register Claims by Feb. 2 ------------------------------------------------------------- Creditors of Guenter Luchtmeijer GmbH have until Feb. 2 to register their claims with court-appointed insolvency manager Heiner Buss. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 1, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aurich Room 018 Schlossplatz 2 26603 Aurich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Aurich opened bankruptcy proceedings against Guenter Luchtmeijer GmbH on Dec. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Guenter Luchtmeijer GmbH Pollerweg 30d 26409 Wittmund Germany The insolvency manager can be reached at: Heiner Buss Hauptstrasse 169 D 26639 Wiesmoor Germany Tel: 0 49 44/10 33 Fax: 0 49 44/91 20 35 HORSTMANN LOGISTIK: Creditors Must Register Claims by March 7 ------------------------------------------------------------- Creditors of Horstmann Logistik Systeme GmbH have until March 7 to register their claims with court-appointed insolvency manager Dr. Joerg Bornheimer. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on March 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Horstmann Logistik Systeme GmbH on Dec. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Horstmann Logistik Systeme GmbH Kaiserstrasse 150 51643 Gummersbach Germany Attn: Bernd Horstmann, Manager Loher Busch 52 32545 Bad Oeynhausen Germany The insolvency manager can be reached at: Dr. Joerg Bornheimer Sporergasse 7 50667 Cologne Germnay IDEA-HAUS: Creditors' Meeting Slated for March 3 ------------------------------------------------ The court-appointed insolvency manager for Idea-Haus-GmbH will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on March 3. 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 insolvency manager's report at 10:30 a.m. on June 29 at the same venue. Creditors have until April 3 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Idea-Haus-GmbH on Jan. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Idea-Haus-GmbH Wittestr. 15 K 13509 Berlin Germany The insolvency manager can be reached at: Christian Koehler-Ma Kurfuerstendamm 212 10719 Berlin Germany IOS ABWICKLUNGS: Claims Registration Ends March 2 ------------------------------------------------- Creditors of IOS Abwicklungs GmbH & Co. KG have until March 2 to register their claims with court-appointed insolvency manager Klaus Siemon. Creditors and other interested parties are encouraged to attend the meeting at 7:45 a.m. on March 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Meiningen Hall A 0105 Linden Avenue 15 Meiningen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Meiningen opened bankruptcy proceedings against IOS Abwicklungs GmbH & Co. KG on Jan. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IOS Abwicklungs GmbH & Co. KG Ringstrasse 98617 Suelzfeld Germany The insolvency manager can be reached at: Klaus Siemon Strasse der Nationen 51 09111 Chemnitz Germany JUNGBLUT-REISEN GMBH: Claims Registration Ends February 28 ---------------------------------------------------------- Creditors of Jungblut-Reisen GmbH have until Feb. 28 to register their claims with court-appointed insolvency manager Peter Steuerwald. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on March 29, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wolfsburg Hall D Rothenfelder Road 43 38440 Wolfsburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Wolfsburg opened bankruptcy proceedings against Jungblut-Reisen GmbH on Jan. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jungblut-Reisen GmbH Attn: Francoise Jungblut, Manager Alversdorfer Strasse 8 38364 Schoeningen Germany The insolvency manager can be reached at: Peter Steuerwald Bruchtorwall 6 38100 Braunschweig Germany Tel: 0531 / 244 80-0 Fax: 0531 / 244 80-80 E-Mail: psteuerwald@hausherr-steuerwald.de KBL-KUECHENVERTRIEBS GMBH: Claims Registration Ends February 20 --------------------------------------------------------------- Creditors of KBL -Kuechenvertriebs - GmbH have until Feb. 20 to register their claims with court-appointed insolvency manager Jens Fahnster. Creditors and other interested parties are encouraged to attend the meeting at 10 a.m. on March 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Limburg Room D 219 Walderdorffstrasse 12 65549 Limburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Limburg opened bankruptcy proceedings against KBL -Kuechenvertriebs - GmbH on Dec. 29, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KBL -Kuechenvertriebs - GmbH Kapellenstrasse 2 a 65555 Limburg-Offheim Germany Attn: Gerhard Solbach, Manager Im Weidenbusch 15 56414 Steinefrenz Germany The insolvency manager can be reached at: Jens Fahnster Koelnstr. 135 D 53757 Sankt Augustin-Hangelar Germany Tel.: 02241/9060-0 Fax: 02241/9060-90 E-Mail: kanzlei@kalker-fahnster.de OTOMAN LOGISTIC: Claims Registration Ends February 19 ----------------------------------------------------- Creditors of OTOMAN Logistic & Service GmbH have until Feb. 19 to register their claims with court-appointed insolvency manager Siegfried Mueller. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against OTOMAN Logistic & Service GmbH on Dec. 22, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: OTOMAN Logistic & Service GmbH Zeissstr. 36 50171 Kerpen Germany Attn: Kudret Bueyuekkaja, Manager Grafeneck 4 58239 Schwerte Germany The insolvency manager can be reached at: Siegfried Mueller Koelner Strasse 67 50226 Frechen Germany Tel: 02234/9678812 Fax: +4922349678820 PEHAC MASINSPECT: Claims Registration Ends February 22 ------------------------------------------------------ Creditors of Pehac Masinspect Gmbh Machines Trade and Service have until Feb. 22 to register their claims with court-appointed insolvency manager Dr. Henning Dohrmann. Creditors and other interested parties are encouraged to attend the meeting at 8:22 a.m. on March 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Room 142 1st Floor Luxemburger Road 101 50939 Cologne, Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cologne opened bankruptcy proceedings against Pehac Masinspect Gmbh Machines Trade And Service on Dec. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pehac Masinspect Gmbh Machines Trade And Service Lockenfeld 2 51709 Marienheide Germany Attn: Achenbach Michael, Manager Enneststr. 20 51702 Bergneustadt Germany The insolvency manager can be reached at: Dr. Henning Dohrmann Moltkestrasse 12 51643 Gummersbach Germany PRASIDENTEN PILS: Claims Registration Ends Feb 23 ------------------------------------------------- Creditors of Prasidenten Pils GmbH & Co. have until Feb. 23 to register their claims with court-appointed insolvency manager Dr. Hans-Gert Dhonau. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Kreuznach Hall 309 Ringstrasse 79 55543 Bad Kreuznach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bad Kreuznach opened bankruptcy proceedings against Prasidenten Pils GmbH & Co. on Jan 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Prasidenten Pils GmbH & Co. Attn: Hans Erich Fuchs, Manager Kreuznacher Str. 4 55452 Windesheim Germany The insolvency manager can be reached at: Dr. Hans-Gert Dhonau Bahnhofstr. 7 D 55566 Bad Sobernheim Germany R & R BAUMASCHINENZENTRUM: Claims Registration Ends Feb. 20 ----------------------------------------------------------- Creditors of R & R Baumaschinenzentrum Elbingerode GmbH have until February 20 to register their claims with court-appointed insolvency manager Dipl.-Betriebswirt Heiko Rautmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall E Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Magdeburg opened bankruptcy proceedings against Baumaschinenzentrum Elbingerode GmbH on January 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R & R Baumaschinenzentrum Elbingerode GmbH Muehlental 17 38875 Elbingerode Germany Attn: Doerte Reulecke Bergstr. 3 38889 Ruebeland Germany The insolvency manager can be reached at: Dipl.-Betriebswirt Heiko Rautmann Editharing 31 39108 Magdeburg Germany Tel: 0391/5066030 Fax: 0391/5066033 E-mail: Heiko.Rautmann@gmx.de R&S ALLGEMEINE: Creditors' Meeting Slated for Feb. 22 ----------------------------------------------------- The court-appointed insolvency manager for R&S Allgemeine Geschaftsfuehrungs-GmbH & Co, Dr. Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:55 a.m. on Feb. 22. 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 insolvency manager's report at 11:30 a.m. on May 24 at the same venue. Creditors have until March 22 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against R&S Allgemeine Geschaftsfuehrungs-GmbH & Co on Jan. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R&S Allgemeine Geschaftsfuehrungs-GmbH & Co Hausotterstrasse 59 KG Pohlstr.20 10785 Berlin Germany The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin Germany REVIER LOEWEN: Claims Registration Ends February 20 --------------------------------------------------- Creditors of Revier Loewen Oberhausen GmbH have until Feb. 20 to register their claims with court-appointed insolvency manager Dagmar Karutz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 22, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Area C315 3rd Floor Cardinal Galen Road 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duisburg opened bankruptcy proceedings against Revier Loewen Oberhausen GmbH on Jan. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Revier Loewen Oberhausen GmbH Kirchstr.5 46117 Oberhausen Germany Attn: Lars Gerike, Manager Sodinger Str.544 44627 Herne Germany The insolvency manager can be contacted at: Dagmar Karutz Gemarkenstr. 95 45147 Essen Germany SCHULZE DOERING: Creditors' Meeting Slated for February 21 ---------------------------------------------------------- The court-appointed insolvency manager for Schulze Doering Klinkerbau GmbH, Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:55 a.m. on Feb. 21. 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 insolvency manager's report at 9:00 a.m. on May 30, at the same venue. Creditors have until April 2 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Schulze Doering Klinkerbau GmbH on Jan. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schulze Doering Klinkerbau GmbH Novalisstr. 13 10115 Berlin Germany The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin Germany SGH SAATGUTVERTRIEBS: Claims Registration Ends February 21 ---------------------------------------------------------- Creditors of SGH Saatgutvertriebs- und Grosshandels-GmbH have until Feb. 21 to register their claims with court-appointed insolvency manager Ingo Thurm. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on March 21, at which time the insolvency manager 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 insolvency manager'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 SGH Saatgutvertriebs- und Grosshandels-GmbH on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SGH Saatgutvertriebs- und Grosshandels-GmbH Attn: Reinhard Koch, Manager Riethorst 19 30659 Hanover Germany The insolvency manager can be contacted at: Ingo Thurm Aegidientorplatz 2 B 30159 Hanover Germany Tel: 0511 475577-0 Fax: 0511 475577-98 SGH SAMENZUCHT: Claims Registration Ends February 21 ---------------------------------------------------- Creditors of SGH Samenzucht und Grosshandel GmbH & Co. KG i.L. have until Feb. 21 to register their claims with court-appointed insolvency manager Helge Wachsmuth. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on March 21, at which time the insolvency manager 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 insolvency manager'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 SGH Samenzucht und Grosshandel GmbH & Co. KG i.L. on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SGH Samenzucht und Grosshandel GmbH & Co. KG i.L. Attn: Reinhard Koch, Manager Riethorst 19 30659 Hannover Germany The insolvency manager can be contacted at: Helge Wachsmuth Alexanderstr. 2 30159 Hanover Germany Tel: 0511 325095 Fax: 0511 329934 SPIELE DISTRIBUTION: Claims Registration Ends February 16 --------------------------------------------------------- Creditors of Spiele Distribution und Marketing GmbH have until Feb. 16 to register their claims with court-appointed insolvency manager Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Giessen Hall 408 4th Floor Building B Gutfleischstrasse 1 35390 Giessen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Giessen opened bankruptcy proceedings against Spiele Distribution und Marketing GmbH on Jan. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Spiele Distribution und Marketing GmbH Attn: Michael Goll, Liquidator Carl-Benz-Ring 1 35423 Lich Germany The insolvency manager can be contacted at: Dr. Jan Markus Plathner c/o Rae Brinkmann und Kollegen Lyoner Road 14 60528 Frankfurt/Main Germany Tel: 069/9623340 Fax: 069/96233422 STERNEN GASTRONOMIE: Claims Registration Ends February 23 --------------------------------------------------------- Creditors of Sternen Gastronomie GmbH have until Feb. 23 to register their claims with court-appointed insolvency manager Christian Zschocke. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Konstanz Hall 207 2nd Floor Main Building Lower Bower 12 78462 Konstanz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Konstanz opened bankruptcy proceedings against Sternen Gastronomie GmbH on Jan. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Sternen Gastronomie GmbH Attn: Uwe Bruetsch, Liquidator Gottlieb-Daimler-Str. 19a 78224 Singen, Germany The insolvency manager can be contacted at: Christian Zschocke Enge Road 2 78224 Singen, Germany STRZODA BEDACHUNGEN: Claims Registration Ends March 5 ----------------------------------------------------- Creditors of Strzoda Bedachungen GmbH have until March 5 to register their claims with court-appointed insolvency manager Harald Schwartz. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Amberg Room 115 Meeting Room V 1 Stick Baustadelgasse 1 Amberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Amberg opened bankruptcy proceedings against Strzoda Bedachungen GmbH on Jan. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Strzoda Bedachungen GmbH Gruber-Sperl-Str. 2 93142 Maxhuette-Haidhof Germany The insolvency manager can be contacted at: Dr. Harald Schwartz Waisenhausgasse 3-4 92224 Amberg Germany Tel: 09621/91 10 0 Fax: 09621/91 10 22 TANGENS VERWALTUNGS: Claims Registration Ends March 7 ----------------------------------------------------- Creditors of Tangens Verwaltungs GmbH i.L. have until March 7 to register their claims with court-appointed insolvency manager Jens Lieser. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on March 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Kreuznach Hall 406 Ringstrasse 79 55543 Bad Kreuznach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bad Kreuznach opened bankruptcy proceedings against Tangens Verwaltungs GmbH i.L. on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Tangens Verwaltungs GmbH i.L. Johann-Steffen-Str. 2 56869 Mastershausen Germany The insolvency manager can be contacted at: Jens Lieser Josef-Goerres-Place 5 56068 Koblenz Germany Tel: 0261/30479-0 Fax: 0261/9114729 E-mail: info@lieser-rechtsanwaelte.de TOGOSTRASSE 11: Creditors' Meeting Slated for March 16 ------------------------------------------------------ The court-appointed insolvency manager for Togostrasse 11 Vermietungs- und Verwaltungs-GmbH & Co. Beteiligungs KG, Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m. on March 16. 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 insolvency manager's report at 9:20 a.m. on June 15, at the same venue. Creditors have until April 16 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Togostrasse 11 Vermietungs- und Verwaltungs- GmbH & Co. Beteiligungs KG on Dec. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Togostrasse 11 Vermietungs- und Verwaltungs-GmbH & Co. Beteiligungs KG Kurfuerstenstr. 56 10785 Berlin Germany The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany WARDWELL EUROPE: Creditors' Meeting Slated for February 21 ---------------------------------------------------------- The court-appointed insolvency manager for Wardwell Europe GmbH, Udo Feser, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on Feb. 21. 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 insolvency manager's report at 10:15 a.m. on June 6, at the same venue. Creditors have until April 4 to register their claims with the court-appointed insolvency manager. The District Court of Charlottenburg opened bankruptcy proceedings against Wardwell Europe GmbH on Jan. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wardwell Europe GmbH Rhinstrasse 137 10315 Berlin Germany The insolvency manager can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin Germany =========== G R E E C E =========== ASPIS BANK: Fitch Affirms BB+ IDR with Stable Outlook ----------------------------------------------------- Fitch Ratings revised the Outlook on Greece-based Aspis Bank's Issuer Default rating to Positive from Stable. At the same time, the agency has affirmed the bank's ratings at IDR 'BB+', Short-term 'B', Individual 'C/D' and Support '5'. "Aspis's operating profitability and cost efficiency - albeit still weaker than that of its bigger Greek peers' - have improved in 2005 and 9M06. If sustained, these trends should support the bank's standing in an increasingly competitive Greek market," says Cristina Torrella, Director in Fitch's Financial Institutions team. A EUR53 million common share issue in December 2006 supports future growth. The latter boosted Aspis's capital base, raising its Tier 1 capital ratio to a sound 11.2% from 7.7% at the end of third quarter of 2006. "If the bank continues its positive development with regards to operating profitability, cost efficiency and reducing credit risk concentration without compromising its risk profile or significantly eroding its capitalization, the bank's IDR could be upgraded within the next 12 to 24 months," adds Ms. Torrella. While reflecting its better-contained costs and solid niche franchise in Greece's residential mortgage market, the ratings also take into account Aspis's small size, still heavy cost base, below-average asset quality and concentration in corporate loan book. At end of third quarter of 2006, impaired loans represented a high 8.3% of gross loans and were only just adequately provided for at 30%. At the same time, Aspis's 20 biggest corporate loans amounted to 2.2 times eligible capital with two loans exceeding 20% of eligible capital. However, the agency acknowledges that a fair share of those loans is collateralized and that this concentration has fallen with the bank's growing capital base. Aspis's risk profile continues to benefit from a high share of lower-risk residential mortgages, about a third of which are state-subsidized. Higher-risk loans like consumer loans and credit cards still account for a relatively small percentage of total loans. The bank's liquidity has been supported by strong retail deposit growth in 9M06 and is in Fitch's view sound. Aspis is the 10th-largest bank in Greece by total assets, with a 1.2% market share of loans and 1.1% of deposits at end-2005. Focused on Greece, it had 69 branches and 1,026 staff at end- Q306 and offers a full range of banking and bancassurance products. As of mid-December 2006, Aspis Pronia General Insurance Company its various affiliates owned 54.8% of the bank, ABN AMRO 4.2% and institutional shareholders 15.2%; the balance is listed on the Athens Stock Exchange. ============= I R E L A N D ============= ZOO HF: S&P Assigns BB Rating to EUR5 Million Class E Notes ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to Zoo HF 3 PLC's EUR127.00 million asset-backed floating-rate notes. The ratings assigned to the notes reflect the credit enhancement provided by the subordinated classes, the structure of the transaction, and the diversification of the asset pool, which was subjected to various stresses by Standard & Poor's. Ratings Assigned Zoo HF 3 PLC Class Rating Amount (EUR mil) ----- ------ ---------------- A AAA 94.50 B AA 8.00 C A 6.50 D BBB 12.50 E BB 5.50 F NR 18.00 ========= I T A L Y ========= UNIONFIDI: Weak Asset Quality Cues Fitch to Affirm Low-B Ratings ---------------------------------------------------------------- Fitch Ratings affirmed Italy-based Unionfidi's ratings at Issuer Default 'BB+' with a Stable Outlook, Short-term 'B' and Insurer Financial Strength 'BBB-'. The ratings reflect UPI's scarce capitalization, weaker asset quality relative to some of its peers and frail profitability. They also take into account its good competitive position, improving internal organization and low market risk. UPI is expanding its geographical coverage. It recently opened three offices outside Piedmont and cooperates with other confidi based in other Italian regions, thus helping it to sustain growth. In 2006, about 21% of new guarantees were issued outside its historical area. UPI's operating profitability is volatile. Fees grew significantly in 2006 as a result of revised pricing and higher volumes. Operating expenses decreased as management sought to improve efficiency. Management expects loan loss provisions to increase slightly in 2006 following higher business volumes. UPI has adequate credit assessment systems and its guarantee book is well diversified by sector and single borrower. Since 2002, UPI's guarantee book has gradually deteriorated, partly reflecting weaknesses in the local economy. At end-September 2006, problem guarantees were equal to EUR23 million or a relatively high 44% of its equity plus loan loss reserves. Recoveries on problem guarantees are rising, thanks to increasing use of counter-guarantees and an improved recovery process. At end-November 2006, UPI had EUR960 million gross guarantees outstanding. The European Investment Fund and the Central Guarantee Fund counter-guarantee some of UPI's transactions. The combined use of counter-guarantees, structured products and a credit default swap, entered with a major Italian bank by end- 2006, reduced by about 50% the credit risk of its guarantee portfolio. UPI's market risk is low and adequately monitored; it is not exposed to equities or derivatives. At end-2005, UPI's capital base was small at EUR23 million, both in absolute terms and relative to the level of total and problem guarantees. However, UPI's equity grew by about 8% during 2006, thanks to larger net income and increased share premiums paid by its SME members. Aware of the need to strengthen its capital, management is trying to put in place a capital increase that would yield a maximum of EUR8 million fresh capital. UPI is a regional confidi that provides credit guarantees to SMEs. It was set up in 1975 and is based in Turin, in the region of Piedmont. Given its size, Fitch expects UPI to qualify as a financial intermediary under Article 107 of the Italian Banking Act. This would mean light supervision from Banca d'Italia, once regulation by the Italian Ministry of Economy and Finance and BdI is in place. =================== K A Z A K H S T A N =================== ADVERTISING-INFORMATIONAL: Claims Registration Ends March 9 ----------------------------------------------------------- LLP Advertising-Informational Centre has declared insolvency. Creditors have until March 9 to submit proofs of claim at: LLP Advertising-Informational Centre Shevchenko Str. 119-35 Taldykorgan Almaty Region Kazakhstan AIDOSOV & K: Claims Registration Period Ends March 9 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region has declared LLP Aidosov & K insolvent on Dec. 7, 2006. Creditors have until March 9 to submit proofs of claim at: LLP Aidosov & K Suleimenov Str. 17(11a) Taraz Jambyl Region Kazakhstan AK-BULAK TRADE: Claims Registration Period Ends March 9 ------------------------------------------------------- LLP Ak-Bulak Trade has declared insolvency. Creditors have until March 9 to submit proofs of claim at: Amangeldy Str. 14 B. Ashekeev Karasai district Almaty Region Kazakhstan ALORA OIL: Almaty Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has commenced bankruptcy proceeding against LLP Alora Oil Group on Dec. 15, 2006. ALTAY SERVICE: Claims Registration Period Ends March 9 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan Region has declared LLP Altay Service Centre insolvent. Creditors proofs of claim will be accepted until March 9 at: LLP Altay Service Centre Myzy Str. 29-77 Ust-Kamenogorsk East Kazakhstan Region Kazakhstan Tel: 8 (3232) 57-77-29 COMPANY PRINCIPE: Creditors Have Until March 9 to Submit Claims --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan regionhas declared LLP Company Principe insolvent on Dec. 13, 2006. Creditors have until March 9, to submit written proofs of claim to: LLP Company Principe Valihanov Str. 145 Semipalatinsk, Office 3 East Kazakhstan Region Kazakhstan Tel: 8 3222 56-21-57 8 333 212 41-64 INNOVATION-CONSULTING: Claims Registration Period Ends March 9 -------------------------------------------------------------- LLP Innovation-Consulting Centre "Innotechs" has declared insolvency. Creditors have until March 9 to submit proofs of claim at: LLP Innovation-Consulting Centre Office 61 Tulebaev Str. 32 Almaty Tel: 8 (3272) 71-42-59 MANGISTAU PROD: Claims Registration Period Ends March 9 ------------------------------------------------------- LLP Mangistau Prod Product has declared insolvency. Creditors' proofs of claim will be accepted until March 9 at: LLP Mangistau Prod Product 59a-40 Micro District 14 Akatu Mangistau region Kazakhstan Tel: 8 (3292) 42-93-42 SENIM-AUDIT: Claims Registration Period Ends March 9 ---------------------------------------------------- LLP Senim-Audit has declared insolvency. Creditors proofs of claim will be accepted until March 9 at: LLP Senim-Audit Gabdulin Str. 8 kent Issyk-Ata Mahtaaralsky district South Kazakhstan region Kazakhstan =================== K Y R G Y Z S T A N =================== ASKA HOLDING: Creditors Must File Claims by March 16 ---------------------------------------------------- Aska Holding Ltd. (INN 02301200410066) has declared insolvency. Creditors have until March 16 to submit written proofs of claim to: Aska Holding Ltd. Turusbekov Str. 47 Bishkek, Kyrgyzstan =================== L U X E M B O U R G =================== LECTA SA: Moody's Puts Low-B Ratings to Proposed EUR648-Mln Debt ---------------------------------------------------------------- Moody's Investors Service assigned to Lecta S.A.: -- a Ba3 Corporate Family Rating; -- a provisional (P)Ba3 to the proposed EUR473-million Senior Secured Floating Rate Notes due 2014; and -- a provisional (P)B1 to the proposed EUR175-million Senior Unsecured Floating Rate Notes due 2014. The outlook for all ratings is stable. "The Ba3 CFR is a reflection of Lecta's leading market positions in its core South European markets of coated wood free paper, the well-managed asset base, the favorable product mix as well as the expectation of an industry-wide price recovery in the latter half of 2007, which should help to bolster the company's financial profile going forward," said Martin Kohlhase, Moody's lead analyst for the European pulp and forest products industry. However, the rating remains constrained primarily by: (i) the low degree of pulp integration exposing the company to periods of high pulp prices; (ii) the private equity shareholder, which over the last 10 years has been very supportive to Lecta's financial profile -- no significant dividend payments, moderate leverage, support of a sizeable capex program in the last few years. Moody's is cautious to what extent the shareholder would show similar restraint, albeit within the limits of the bond documentation, in the face of strengthened cash flows, which could limit the positive impact of a potential industry recovery for Lecta. The stable outlook on Lecta's ratings incorporates the expectation -- but is not conditional to -- a price recovery for coated paper grades following capacity closures in Europe, which should be the primary driver to a strengthening financial profile, given that the company already operates at a very efficient level. Throughout 2007 Moody's also does not expect that volatile input prices -- energy and pulp being the dominant variables -- should have a similarly negative impact as over the past two years. At the same time, Moody's said that the assigned ratings incorporate the possibility of either a marginally more shareholder-friendly dividend and capital structure policy or some weakening of Lecta's financial profile due to pulp or paper price fluctuations. Apart from bolt-on acquisitions in the paper distribution business in its core South European markets and the co-generation plant in Italy, Moody's has not factored into the rating any large debt-financed acquisitions or larger capital expansion programs. Lecta will use the proceeds from the issuance of the bonds, EUR648-million, to repay existing credit facilities of EUR748.5- million and will simultaneously enter into an agreement for a EUR100-million bridge facility for a securitization program. A new, EUR75-million multi currency revolving credit facility of which EUR60-million will be committed, is expected to be un- drawn at signing and only moderately used over the coming 12- month period. The revolver will be secured by shares, certain bank accounts and receivables, and will be guaranteed by Lecta's main operating companies. The proposed secured and unsecured notes are both issued by Lecta S.A., a holding company and are guaranteed on a secured/unsecured basis by all major subsidiaries with the exception of the French operating entity Condat S.A. Due to the security provided in support of the secured notes over substantially the same assets as the revolver and the relatively small amount of the senior secured bank and hedging transaction debt, the secured notes have been rated at the same level as the CFR. The senior unsecured notes will be effectively subordinated to all liabilities, including those to trade creditors, and have been rated one notch below the CFR. Lecta S.A., with legal headquarters in Luxembourg and its main domicile in Paris/France, is a leading coated wood free paper manufacturer in Spain, Italy and France. The company also has a Specialty paper division and distribution business in the Iberian market. During the first nine months of 2006 Lecta recorded sales of EUR1.43 billion and employed around 4,700 people per Dec. 31, 2006. LECTA SA: S&P Gives B Rating to EUR175 Million Unsecured Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term and 'B' short-term corporate credit ratings to Luxembourg-based paper manufacturer Lecta S.A. The outlook is stable. At the same time, EUR473 million in proposed senior secured floating rate notes and EUR175 million in proposed senior unsecured floating rate notes were assigned long-term issue credit ratings of 'BB-' and 'B', respectively. The secured issue was assigned a recovery rating of '3'. "The ratings on Lecta reflect its exposure to the cyclical, competitive, and currently challenging European coated fine paper market," said Standard & Poor's credit analyst Andreas Zsiga. The group's financial risk profile is aggressive with debt protection measures that are currently weak for the rating. This is partly offset by the group's good market position, competitive and efficient asset base, proximity to key end- markets, and prospects for medium-term market improvement. The stable outlook reflects the expectation that Lecta's debt protection measures will improve. Ratings upside is very limited given the company's current underperformance. Factors that could result in an upgrade include further significant and sustainable deleveraging and cash flow improvement. Factors that could result in a downgrade include a protracted market downturn with sustained pressure on margins and cash flows. Any recapitalization resulting in higher debt leverage, or debt- funded acquisitions would be considered event risk and would be negative. ============= R O M A N I A ============= TRANSELECTRICA SA: Moody's Lifts Ba1 Corp. Family Rating to Baa3 ---------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Transelectrica S.A. to Baa3 from Ba1. The rating outlook is stable. This rating action concludes the review for possible upgrade initiated on June 7, 2006 and reflects the upgrade of the local currency rating of the Government of Romania to Baa3 from Ba1 on 6 October 2006, which was prompted by continuing improvements in Romania's economic institutions and a reduction in the government's debt burden. In accordance with Moody's rating methodology for Government-Related Issuers, Transelectrica's rating reflects the combination of these inputs: -- Baseline credit assessment of 13 (on a scale of 1 to 21, where 1 represents the lowest credit risk) -- Baa3 local currency rating of the Government of Romania -- Medium dependence -- High support According to Moody's, Transelectrica remains satisfactorily positioned within its baseline credit assessment of 13. The BCA reflects Transelectrica's strategic role as owner and operator of the Romanian transmission grid and an improving financial profile within a fairly benign regulatory environment. It is nonetheless constrained by a weak liquidity position resulting from an extensive capital investment programme and limited committed undrawn debt facilities. There have been no changes to Transelectrica's dependence or support inputs as a result of this rating action. Transelectrica, headquartered in Bucharest, Romania, is the electricity transmission system and market operator in Romania. In 2005, the company's turnover was ROL1.7 billion (about EUR480 million). =========== R U S S I A =========== AGRO-COM CJSC: Creditors Must File Claims by February 13 -------------------------------------------------------- Creditors of CJSC Agro-Com have until Feb. 13 to submit written proofs of claim to: A. Stepanov, Insolvency Manager Post User Box 169 Central Post Office Tver Region Russia The Arbitration Court of St. Petersburg and Leningrad Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A58-37675/2006. 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 Agro-Com Voyskorovo Tosnenskiy Region Leningrad Region Russia CHERNYSHIKHINSKOYE OJSC: Bankruptcy Hearing Slated for April 10 --------------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene on April 10 to hear the bankruptcy supervision procedure on OJSC Chernyshikhinskoye. The case is docketed under Case No. A43-30917/2006-24-566. The Temporary Insolvency Manager is: S. Buslaeva Room 7 Iv. Romanova Str. 20 603002 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: OJSC Chernyshikhinskoye Chernyshikha Kstovskiy Region 606229 Nizhniy Novgorod Region Russia CHIMEEVKSKIY SPRING: Bankruptcy Hearing Slated for April 25 ----------------------------------------------------------- The Arbitration Court of Kurgan Region will convene at 10:30 a.m. on April 25 to hear the bankruptcy supervision procedure on LLC Chimeevkskiy Spring. The case is docketed under Case No. A34-7578/2006. The Temporary Insolvency Manager is: A. Maslakov Office 212 Myagotina Str. 123 640000 Kurgan Region Russia The Debtor can be reached at: LLC Chimeevkskiy Spring Chimeevo Belozerskiy Region 641254 Kurgan Region Russia FATEKS+ CJSC: Creditors Must File Claims by Feb. 13 --------------------------------------------------- Creditors of CJSC Fateks+ have until Feb. 13 to submit written proofs of claim to: V. Zorov, Temporary Insolvency Manager K. Marksa Str. 9 Kineshma 155800 Ivanovo Region Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A40-42091/06-44-897B. The Arbitration Court of Moscow is located at: Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Fateks+ Shkulerova Str. 17 109263 Moscow Region Russia KUEDINSKIY DIARY: Creditors Must File Claims by March 13 -------------------------------------------------------- Creditors of LLC Kuedinskiy Diary have until March 13 to submit written proofs of claim to: N. Vokhmina, Insolvency Manager Geroev Khasana Str. 45B 614064 Perm Region Russia The Arbitration Court of Perm Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 50-10716/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: LLC Kuedinskiy Diary Komsomolskaya Str. 58 Kueda Perm Region Russia LUKOIL OAO: Unit Hikes 2006 Output by 51.2% to 5.3 Million Tons --------------------------------------------------------------- Lukoil Overseas, a unit of Lukoil OAO, released its preliminary results of operational and economic activities in 2006. Oil and gas condensate production of the international projects of Lukoil Overseas, comprising all of Lukoil's international upstream projects with the exception of Tengiz, have reached 5.3 million tons of oil -- 5.6 % of Lukoil's total oil production -- an increase of 51.2% year-on-year. Gas production amounted to 1.75 billion cubic meters (11% of Lukoil's gas production), an increase of 5.2%. Similar to last year, the largest volume of work was carried out in Kazakhstan. In particular, construction of production facilities and new well drilling was being undertaken at the Kumkol field, Kyzylorda Region. A new oil treatment and pumping unit with annual capacity of four million tons of oil, plus 8 million tons of water for injection into the reservoir, was commissioned there. At the Karachaganak field, West Kazakhstan Region, hydrocarbon production reached the level of 11.9 billion cubic meters of gas and 10.4 million tons of gas condensate. An agreement was signed to increase gas shipments to the Orenburg Gas Plant, where a joint Russian-Kazakhstan gas-processing venture has been established. A new economical export route for Karachaganak crude from the field to Samara and the Transneft trunk pipeline system, wherefrom oil crude can be directed either to Black Sea or Baltic ports or directly to Central Europe via Druzhba oil pipeline. Preparation for the construction of the Karachaganak- Uralsk gas line to supply up to 500 million cubic meters of gas to consumers in West Kazakhstan Region has been completed. On Nov. 2, 2006, Lukoil Overseas signed an agreement to farm into TOO Zhambai, the contractor under the PSA on two offshore blocks, Zhambai South and South Zaburuniye, with a total area of 2,000 square kilometers, located in shallow water and the transitional zone of Kazakhstan's sector of the Caspian Sea, with a 25% interest. Earlier, a detailed 2D seismic survey was performed on the blocks, as a result of which three prospects, Edil, Kosarna and Karabulak, were identified. The project will be implemented jointly with KazMunaiGas, the national oil and gas company, and Repsol Exploracion Kazakhstan of Spain. The Kandym-Khauzak-Shady-Kungrad project in Uzbekistan, which is being carried out jointly with Uzbekneftegas, the national holding company, came very close to Kazakhstan projects in 2006 in terms of scope of work and investment. During the year intensive development drilling continued at the Khauzak field, Bukhara-Khiva Region, as well as the construction of a gas treatment plant, gas gathering stations, camp, motor road and power line. First commercial gas will be produced here late this year. Active operations continued at other PSA sites, in particular, exploration on the Kungrad acreage, Ust'yurt Region. As for now, it is the largest investment project in Uzbekistan. On Aug. 30, 2006, the PSA for Exploration and Development of Hydrocarbon Deposits in the Uzbek Sector of the Aral Sea was signed. a consortium of investors comprised of Uzbekneftegas, Lukoil Overseas, Petronas Carigali Overseas (Malaysia), CNPC International (China) and KNOC (Korea) will implement the PSA. Each member of the Consortium holds an equal share interest in the project. In December 2006 the parties of the consortium signed a joint operating and single operating agreement and called a tender to select the contractor for acquisition of a seismic survey, which is due to start in March 2007. The three- year exploration program includes a 2D seismic survey and the drilling of two exploration wells. On Dec. 15, 2006 the consortium, which Lukoil Overseas is a part of, developing the Shah-Deniz maritime gas condensate field in Azerbaijan started commercial hydrocarbon production from the first well, which is 6,500 meters deep and was drilled from a stationary platform in 105 meters of water. The company achieved considerable success in its Middle Eastern projects. At the Anaran onshore exploration project in Iran being implemented jointly with the Norway's Norsk Hydro, discovery of commercial oil reserves exceeding two billion barrels of oil was confirmed after analysis of the results of exploration drilling on the Azar structure. It is one of the world's largest oil discoveries of the current decade. In June 2006, the National Iranian Oil Company (NIOC) signed commercialization report for Azar -- giving the parties the exclusive right to negotiate on further development of the field. Negotiations and the drafting of the overall field development plan are expected to be completed this spring. On Feb. 18, 2006, Lukoil Overseas and NIOC singed a contract for the joint geophysical and geological study of Moghan and Lali prospective blocks located in the South Caspian and Zagros Basins of Iran, respectively. Reprocessing and interpretation of drilling, log, seismic, gravitational and magnetic survey, and geochemical rock analysis data is being undertaken in the course of joint operations. Geological modeling training of Iranian professionals at a Russian training and operations base is planned for 2007. At the gas Block A in the Rub Al-Khali desert in Saudi Arabia the drilling of the first exploration well on the Tukhman structure was successfully completed. Analysis of acquired geological data has started. Drilling of the exploration well on the Malaiha structure is continuing. The project is being implemented together with Saudi Aramco, the national petroleum company. In 2006 the company's activities in Latin America reached a qualitatively new level. On the Condor Block in the Llanos petroleum basin in Colombia (a joint project with Ecopetrol, the national oil company) drilling of the first deep exploration well on the Medina structure was completed successfully. At present drilling data is being studied. In Venezuela, on the Junin-3 block (State of Anzoategui, the Orinoco extra heavy oil belt) drilling of the first stratigraphic (parametric) well started under the program to estimate and certify reserves on one of the most promising oil blocks in Latin America. The program is being implemented jointly by LUKOIL and CVP, the investment arm of PDVSA. The size of the block area is 640 square kilometers. A total of 17 stratigraphic wells will be drilled on the block. In 2006, Lukoil Overseas significantly expanded its activities in Africa. In particular, in July an agreement to acquire a 63% interest in the exploration, development and production PSA project on the ultra deepwater block CI-205 from Oranto Petroleum International was signed. The block is located in the Bay of Guinea, 100 kilometers off the coast of Cote d'Ivoire in deep water. It is geologically confined to the Tano Basin, where the Baobab field, the largest in the country, was discovered. Earlier, 2D and 3D seismic was acquired over the block, and exploration drilling is the next step. The project is implemented together with the PETROCI Holding, the national oil company. Lukoil Overseas has established an office in Abidjan, the capital of Cote d'Ivoire. In August 2006, Lukoil and Sonatrach, the Algerian national oil and gas company, signed the Memorandum of Cooperation in the Area of Oil and Gas. The Memorandum provides for cooperation between LUKOIL and Sonatrach in Algeria and Russia, and in third countries. Lukoil Overseas has opened an office in the capital of Algeria. On Oct. 31, 2006, as result of talks between the Presidents of Russia and Angola, the chief executives of LUKOIL and Sonangol, signed a Memorandum of Understanding. About Lukoil Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX, RTS: LKOH) -- http://www.lukoil.com/-- explores and produces oil & gas, petroleum products and petrochemicals, and markets the outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. * * * As reported in the TCR-Europe on July 12, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Lukoil OAO to 'BB+' from 'BB'. S&P said the outlook is positive. MAXI CJSC: Court Names S. Kurochkin as Insolvency Manager --------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad Region appointed Mr. S. Kurochkin as Insolvency Manager for CJSC Agency Maxi (TIN 7808030552). He can be reached at: S. Kurochkin Post User Box 0620 170100 Tver-100 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-43793/2006. 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 Agency Maxi Suvorovskiy Pr. 50/52 191015 St. Petersburg Region Russia NEZHNEVARTOVSKIY CITY: Creditors Must File Claims by March 13 ------------------------------------------------------------- Creditors of CJSC Nezhnevartovskiy City Diary have until March 13 to submit written proofs of claim to: A. Plotnikov, Insolvency Manager Kominterna Str. 11a-111 620078 Ekaterinburg Region Russia The Arbitration Court of Khanty-Mansiyskiy Autonomous Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 75-3802/2006. The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is located at: Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: CJSC Nezhnevartovskiy City Diary Zavodskaya Str. 25 Nizhnevatrovsk 628000 Khanty-Mansiyskiy autonomous region Russia OB'-POLYMER CJSC: Asset Sale Slated for February 13 --------------------------------------------------- LLC Financial and Legal Consultants, the bidding organizer for CJSC Ob'-Polymer, will open a public auction for the company's properties at 11:00 a.m. on Feb. 13 at: LLC Financial and Legal Consultants 6th Floor Krasina Str. 7a Tyumen Region Russia Interested participants have until Feb. 9 to deposit an amount equivalent to 10% of the starting price to: CJSC Ob'-Polymer Settlement Account 40702810000160000165 in branch OJSC Khanty-Mansiyskiy Bank Correspondent Account 3010181010000000740 BIK 047162740 Bidding documents must be submitted by 11:00 a.m. on Feb. 12 to: LLC Financial and Legal Consultants 6th Floor Krasina Str. 7a Tyumen Region Russia The Debtor can be reached at: CJSC Ob'-Polymer Lazareva Str. 11 Nyagan Khanty-Mansiyskiy Autonomous Region-Yugra 628183 Tyumen Region Russia ORLYANSKOYE OJSC: Court Names I. Ryumin as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Samara Region appointed Mr. I. Ryumin as Insolvency Manager for OJSC Orlyanskoye. He can be reached at: I. Ryumin Office 37 Moskovskoye Shosse 20 Ryazan Region Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-1078/2006. The Arbitration Court of Samara Region is located at: Avrory Str. 148 Samara Region Russia The Debtor can be reached at: OJSC Orlyanskoye Sergievskiy Region Verkhnyaya Orlyanka Samara Region Russia POLYMER-PAK CJSC: Court Names Y. Kushenko as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Omsk Region appointed Ms. Y. Kushenko as Insolvency Manager for CJSC Polymer-Pak. She can be reached at: Y. Kushenko Post User Pox 9271 644029 Omsk-29 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-12667/2006. The Debtor can be reached at: CJSC Polymer-Pak Krasnoyarskiy Trakt 155 644035 Omsk Region Russia RAZDOLYE CJSC: Creditors Must File Claims by Feb. 13 ---------------------------------------------------- Creditors of CJSC Razdolye have until Feb. 13 to submit written proofs of claim to: V. Smirnykh, Temporary Insolvency Manager Popova Vargashinskiy Region 641237 Kurgan Region Russia The Arbitration Court of Kurgan Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A-34-7534/2006. The Debtor can be reached at: CJSC Razdolye Popova Vargashinskiy Region 641237 Kurgan Region Russia ROSNEFT OIL: Russia Mulls Selling 25% Stake in Secondary Sale ------------------------------------------------------------- OAO Rosneft Oil Co. considers selling another block of its shares to the public following a successful US$10.6-billion initial public offering in July 2006, Bloomberg News reports citing Interfax News. Valery Nazarov, head of Russia's Federal Property Management Agency, told Interfax that the government might sell 25% of its stake in Rosneft in a secondary share sale. "We think it's enough if the Russian Federation keeps a controlling stake," Mr. Nazarov said. "When that actually happens depends on market conditions and a government decision." Nikolai Manvelov, a Rosneft spokesman, declined to comment on Mr. Nazarov's statements. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * In a TCR-Europe report on Jan. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. As reported in the TCR-Europe on Jan. 2, Fitch Ratings placed OJSC Rosneft Oil's foreign and local currency Issuer Default ratings of BB+ on Rating Watch Positive following the company's announcement of strong financial results for the first nine months of 2006. ROSNO OAO: Moody's Puts Ba1 Insurance Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service assigned a first-time global scale insurance financial strength rating of Ba1 to the Russian insurer OAO ROSNO, Moscow, Russia. The rating outlook is stable. At the same time, Moody's Interfax Rating Agency assigned a Aa1.ru national scale rating to ROSNO. ROSNO is a top 4 insurer in Russia and has a high degree of business diversification, focusing mostly on property, motor and voluntary medical insurance. The company is majority owned by two shareholders, AFK Sistema, a Russian conglomerate with investments in telecommunications, IT, real estate and financial services with a 49.2% stake and Allianz SE, a major international insurance group headquartered in Munich, Germany, with a 47.3% stake. Both shareholders have substantial financial resources to support ROSNO's future growth. Moody's also notes ROSNO's well-developed distribution network, prudent asset allocation policy and established track record of profitability, as evidenced by a combined ratio of less than 100% in each of the last 5 years. This is offset by ROSNO's relatively low capitalization (Gross Underwriting Leverage of 668% as of year-end 2005), high expense ratio (41.7% in 2005), varying profitability by line of business, as well as lack of geographic diversification outside the country. Timour Boudkeev, Vice President -- Senior Credit Officer and lead analyst for ROSNO at Moody's, said: "ROSNO is clearly one of the leading and most established insurers in Russia with a strong management team and a compelling business model, and its Ba1 insurance financial strength and Aa1.ru national scale ratings reflect that. At the same time, the company's ratings are constrained by its lean capitalization and the operating risks inherent in the increasingly competitive Russian insurance market." Commenting on what could result in upward pressure on ROSNO's IFSR, Moody's mentioned these factors: Gross Operating Leverage based on IFRS, defined as [Gross Premiums Written + Gross Technical Reserves] / Shareholders' Equity, consistently below 400%, strong profitability in P&C as evidenced by a sustained combined ratio below 95% across the insurance cycle and/or an improvement in the credit quality of the fixed income portfolio. Conversely, negative rating pressure could develop in the event of a decrease in profitability as evidenced by a combined ratio above 105%, a riskier asset profile, with equities and real estate exceeding 20% of invested assets, weaker capitalization, downgrade of Russia's sovereign rating and/or material changes in the ownership structure. The first-time ratings were assigned: * OAO ROSNO -- insurance financial strength rating at Ba1, stable outlook; * OAO ROSNO -- national scale rating at Aa1.ru. Based in Moscow, Russia, ROSNO is one of the leading Russian insurers. ROSNO had shareholders' equity of US$98.4 million under International Financial Reporting Standards as of Dec. 31, 2005. For FY 2005, it reported Gross Premiums Written of US$549.6 million and net income of US$20.2 million. SIBERIAN BEARING: Creditors Must File Claims by March 13 -------------------------------------------------------- Creditors of CJSC Siberian Bearing Company have until March 13 to submit written proofs of claim to: A. Kolmagorov, Insolvency Manager Post User Box 2719 650070 Kemerovo 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. A67-9193/06. The Debtor can be reached at: CJSC Siberian Bearing Company Geroev Chebarovtsev Str. 30a-135 634026 Tomsk Region Russia SYLVA LLC: Creditors Must File Claims by February 13 ---------------------------------------------------- Creditors of LLC Poultry Farm Sylva (TIN 2631021983) have until Feb. 13 to submit written proofs of claim to: N. Vokhmina, Temporary Insolvency Manager Geroev Khasana Str. 45B 614064 Perm Region Russia The Arbitration Court of Perm Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A50-16047/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: LLC Poultry Farm Sylva Sylva 614503 Perm Region Russia SYNTHESIS A: Creditors Must File Claims by February 13 ------------------------------------------------------ Creditors of CJSC Company Synthesis A have until Feb. 13 to submit written proofs of claim to: M. Orlov, Insolvency Manager Post User Box 522 Central Post Office 170100 Tver Region Russia The Arbitration Court of Tver Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A66-4709/2002. The Arbitration Court of Tver Region is located at: Room 7 Sovetskaya Str. 23b Tver Region Russia The Debtor can be reached at: CJSC Company Synthesis A Apartment 5 Sklizkova Str. 29 Tver Region Russia VOLTAYR-EKSIM CJSC: Creditors Must File Claims by March 13 ---------------------------------------------------------- Creditors of CJSC Voltayr-Eksim have until March 13 to submit written proofs of claim to: M. Galimov, Temporary Insolvency Manager Mendeleeva Str. 18 Nizhnevatrovsk 628616 Khanty-Mansiyskiy Autonomous Region Russia The Arbitration Court of Volgograd Region commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A12-1355/2005-S57. The Debtor can be reached at: M. Galimov, Temporary Insolvency Manager Mendeleeva Str. 18 Nizhnevatrovsk 628616 Khanty-Mansiyskiy Autonomous Region Russia =============== S L O V E N I A =============== ABANKA VIPA: Fitch Holds Individual C Rating in Neg. Outlook ------------------------------------------------------------ Fitch Ratings revised the Outlook on Slovenia-based Abanka Vipa's Issuer Default rating to Stable from Negative. The bank's ratings are affirmed at IDR 'BBB', Short-term 'F3', Individual 'C' and Support '3'. The revision of the Outlook reflects the development of a long- term strategy at Abanka and the expected improvement in the quality of earnings. Abanka's ratings are underpinned by reasonable capitalization, decent asset quality, as well as the strong economic environment in which it operates. "Fitch takes a positive view of the creation of a formalized long-term business plan at the bank," says Tim Beck, Director in Fitch's Financial Institutions Group. "While the strategy does not signify a dramatic change in the direction of the bank, there are new areas of focus. Retail and SME banking will increase in importance, as well as there being further expansion outside Slovenia, mainly to countries of the former Yugoslavia. This should create better quality profitability, with lower reliance on proprietary trading income, though a high appetite for this remains at the bank." Abanka intends to grow retail banking at a slightly faster rate than the market as a whole, with retail lending forecast to grow to 21% of the portfolio at end-2010 from 18% at end-2006. Neverthless, it will remain a predominantly corporate bank. Lending outside Slovenia will grow, but still remain moderate at around 10%-15% of total lending by end-2010. This will be predominantly to companies connected to Slovenian corporates and to a lesser extent subsidiaries of Slovenian corporates. Important to both its expansion in retail lending and outside Slovenia is co-operation with the bank's majority shareholder, Zavarovalnica Triglav, the largest insurance company in Slovenia. Abanka intends to sell ZT products, making the product offering to the customer more attractive, as well as leveraging ZT's customer base in South Eastern Europe. Abanka is 33%-owned directly and indirectly by ZT. The remainder is held by private companies or individuals, all with holdings under 10%. At end-June 2006, Abanka was the third largest bank in Slovenia, representing 8.8% of the system assets. ========= S P A I N ========= CABLEUROPA SAU: S&P Holds B Credit Rating with Positive Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Spanish cable operator Cableuropa S.A.U. to positive from stable. At the same time, Standard & Poor's affirmed its 'B' long-term corporate credit rating on the group and its 'CCC+' long-term debt rating on the senior unsecured debt issued by financing vehicles ONO Finance PLC and ONO Finance II PLC and guaranteed by Cableuropa. At Sept. 30, 2006, Cableuropa had EUR550 million of senior unsecured notes rated by Standard & Poor's. Cableuropa continued to improve its operating and financial metrics in 2006, despite the challenges of integrating and transforming Auna TLC. Specifically, the company improved its operating margin to 35% and lowered its ratio of Standard & Poor's-adjusted gross debt to last-quarter annualized EBITDA to 6.6x at Sept. 30, 2006. The company also achieved positive EBITDA minus capital expenditures for the combined group for the first time ever. Continuing operating and financial improvement and shareholder financial support remain key supporting factors for the rating. That said, Cableuropa continues to face a number of challenges and must show improvement in several critical areas for an upgrade over the medium term. Specifically, it must complete Auna's integration and turnaround after Auna's lower sales during 2006; significantly increase sales and EBITDA to reduce leverage and maintain adequate headroom under the covenants of its bank facility; and stem its significant negative free cash flow generation. "The positive outlook reflects the possibility of an upgrade over the medium term if Cableuropa continues to significantly increase its earnings; completes the integration and turnaround of Auna; reaches positive free operating cash flow and materially reduces leverage," said Standard & Poor's credit analyst Leandro de Torres Zabala. "Given our operating and financial expectations for the group, we do not expect this to happen in 2007." ONO FINANCE: S&P Junks Long-Term Senior Unsecured Debt ------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Spanish cable operator Cableuropa S.A.U. to positive from stable. At the same time, Standard & Poor's affirmed its 'B' long-term corporate credit rating on the group and its 'CCC+' long-term debt rating on the senior unsecured debt issued by financing vehicles ONO Finance PLC and ONO Finance II PLC and guaranteed by Cableuropa. At Sept. 30, 2006, Cableuropa had EUR550 million of senior unsecured notes rated by Standard & Poor's. Cableuropa continued to improve its operating and financial metrics in 2006, despite the challenges of integrating and transforming Auna TLC. Specifically, the company improved its operating margin to 35% and lowered its ratio of Standard & Poor's-adjusted gross debt to last-quarter annualized EBITDA to 6.6x at Sept. 30, 2006. The company also achieved positive EBITDA minus capital expenditures for the combined group for the first time ever. Continuing operating and financial improvement and shareholder financial support remain key supporting factors for the rating. That said, Cableuropa continues to face a number of challenges and must show improvement in several critical areas for an upgrade over the medium term. Specifically, it must complete Auna's integration and turnaround after Auna's lower sales during 2006; significantly increase sales and EBITDA to reduce leverage and maintain adequate headroom under the covenants of its bank facility; and stem its significant negative free cash flow generation. "The positive outlook reflects the possibility of an upgrade over the medium term if Cableuropa continues to significantly increase its earnings; completes the integration and turnaround of Auna; reaches positive free operating cash flow and materially reduces leverage," said Standard & Poor's credit analyst Leandro de Torres Zabala. "Given our operating and financial expectations for the group, we do not expect this to happen in 2007." =========== S W E D E N =========== DOLE FOOD: Moody's Cuts Low-B Ratings on Weak Performance --------------------------------------------------------- Moody's Investors Service downgraded the ratings of Dole Food Company Inc. as follows: -- corporate family rating to B2 from B1; -- probability of default rating to B2 from B1; -- senior secured bank credit facilities to Ba3 from Ba2; -- senior unsecured notes to Caa1 from B3; and -- various shelf registrations to (P)Caa1 from (P)B3. The outlook is stable. The downgrade reflects Dole's weaker than expected operating performance, continuing competitive pressures in its key European banana markets, and debt protection measures which are much weaker than those consistent with its prior rating category. The company's ratings reflect its high earnings and cash flow volatility, its high leverage and very weak debt protection measures, its exposure to commodity markets as well as such uncontrollable factors as weather or political regulations on key product markets such as bananas. These challenges are partially offset by Dole's strong brand and market position, its good product diversification, and its solid geographic diversification of raw material supply. The stable outlook reflects Moody's expectation that Dole's operating performance will stabilize, that the company will work to reduce debt and leverage over the next few years, and that the company will manage its acquisition activity and financial policy in such a way that will maintain its debt protection measures at levels consistent with its rating. Ratings downgraded are as follows: * Dole Food Company, Inc. -- Corporate family rating to B2 from B1; -- Probability of Default rating to B2 from B1; -- US$225-million senior secured 7-year term loan to Ba3 (LGD 2/23%) from Ba2 (LGD 2/20%) -- Senior secured 7-year pre-funded letter of credit facility to Ba3 (LGD 2/23%) from Ba2 (LGD 2/20%) -- Senior unsecured notes to Caa1 (LGD 5/78%) from B3 (LGD 5/77%); -- Senior unsecured shelf to (P) Caa1 (LGD 6/97%) from (P) B3 (LGD 6/97%); -- Senior subordinated shelf to (P) Caa1 (LGD 6/97%) from (P) B3 (LGD 6/97%); and -- Junior subordinated shelf to (P) Caa1 (LGD 6/97%) from (P) B3 (LGD 6/97%) * Solvest, Ltd. -- US$750-million senior secured 7-year term loan to Ba3 (LGD 2/23%) from Ba2 (LGD 2/20%) Dole Food Company, Inc., headquartered in Westlake Village, California, has revenues of about US$6 billion. STENA AB: Moody's Rates Proposed EUR300-Mln Notes at (P)Ba3 ----------------------------------------------------------- Moody's Investors Service changed the outlook on all Stena AB's ratings to positive from stable and assigned a (P)Ba3 rating to its proposed EUR300-million notes due 2017. "The outlook-change to positive, reflects a continued improving trend of Stena's operating performances in all its line of business, as well as an expectation that Stena's consolidated performance will demonstrate greater resilience going forward" says Marco Vetulli, Vice-President -- Senior Analyst and the lead analyst at Moody's for the European Shipping sector. The ferry division, in face of modest revenue growth, substantially increased operating profitability as the benefits of cost control policies deployed by the group took full effect. Moreover, the turnaround of the ferry division can now be considered successfully achieved following the double shocks suffered by the business starting in the late 90s' following the fall of the duty free activities and the increase of competition of low cost airlines; Moody's believes that the ferry division's profitability should be better assured going forward. Other shipping activities improved markedly resulting from good charters rate and sale of assets exploiting good market conditions. Notwithstanding that this line of business is expected to remain volatile, Stena's good customers base and current good market environment should provide cushion over the short term. The shipping activities were further buoyed by the group's drilling activities, which recorded very strong results after a number of years of weak conditions. The contribution of real estate activities remained relatively stable at about 10% of total revenues and about 15% of total EBITDA despite accounting for around 40% of total adjusted debt. Based on historical results of the last five years Stena's rating continues to strengthen in its Ba2 category under Moody's rating methodology for the global shipping industry. Further reduction in net indebtedness and continued performance improvements could to lead to an improved rating of Ba1 over the next 12-18 months." Stena AB ratings are: -- Corporate Family: Ba2; -- Senior Unsecured Notes: Ba3; -- New Senior Unsecured Notes: (P)Ba3; and -- Outlook: Positive. Moody's last rating action was on Nov. 20, 2003. Headquartered in Gothenburg, Stena AB, with a consolidated turnover of around EUR2.5 million, is one of the largest privately owned groups in Sweden. Olsson Family controls 100% of the share capital of the Company. Stena AB is a holding company which controls the main business of the Group, currently organized into five main business divisions: * Ferry Operations; * Shipping; * Offshore Drilling; * Real Estate; and * Other investment activities. ===================== S W I T Z E R L A N D ===================== AMBER EXPORT: Creditors' Liquidation Claims Due February 12 ----------------------------------------------------------- Creditors of LLC Amber Export have until Feb. 12 to submit their claims to: Gregor Mrozwski-Krupowies Liquidator Oberwilerstrasse 32 6062 Wilen Munchwilen Thurgau Switzerland The Debtor can be reached at: LLC Amber Export 6060 Sarnen Obwalden Switzerland ETOILES & VINS: Creditors' Liquidation Claims Due February 12 ------------------------------------------------------------- Creditors of LLC Etoiles & Vins have until Feb. 12 to submit their claims to: Alfred Grangier Liquidator Mattenweg 6 post box: 235 8905 Islisberg Aargau Switzerland The Debtor can be reached at: LLC Etoiles & Vins Zurich Switzerland JMT TRADING: Creditors' Liquidation Claims Due February 12 ---------------------------------------------------------- Creditors of LLC JMT Trading have until Feb. 12 to submit their claims to: JSC JURA TREUHAND Liquidator Muhlemattstrasse 25 4104 Oberwil Switzerland The Debtor can be reached at: LLC JMT Trading Oberwil Switzerland NOVELIS INC: In Sale Talks; India-Based Group May Submit Offer -------------------------------------------------------------- Novelis Inc. is in talks with various parties that could lead to a potential sale of the company, Dale Crofts writes for Bloomberg News. Bloomberg says Kumar Mangalam Birla's Aditya Birla Group might make an offer soon following Novelis' disclosure. However, the company stated that there could be no assurance that any deal would happen. Mumbai-based Aditya Birla Group, the Hindustan Times says, might make a US$5 billion to US$6 billion deal, citing an unknown source. MorningStar Inc. metals analyst Ben Butwin said the Novelis' recent results were not remarkable and the company suffered enough debt. Novelis had a US$170 million loss for the nine- month period ended Sept. 30, 2006, with US$3.2 billion in debt and loans outstanding, Bloomberg notes. According to the data compiled by Bloomberg, the company's shares rose CDN$8.40 to CDN$44.05 on the Toronto Stock Exchange last week, which have almost doubled in the past 12 months surging 24% to a record. Its market value is about CDN$3.26 billion (US$2.76 billion). Management Changes On Jan. 2, 2007, Novelis appointed Edward A. Blechschmidt as a substitute CEO. Bloomberg relates that the company is looking for a permanent replacement after ousting Brian W. Sturgell in August 2006 following a jump in metal prices led to losses. Mr. Blechschmidt, a board member, succeeded Chairman William T. Monahan, who had been interim CEO since ousting Mr. Sturgell, an Alcan Inc. executive VP when he was named as Novelis CEO in 2004, Bloomberg adds. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has around 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. The company has facilities in Hongkong, Malaysia, Canada, the U.S. and Switzerland, among others. * * * As reported in the Troubled Company Reporter on Oct. 20, 2006, Moody's Investors Service, in connection with its implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors, confirmed Novelis Inc.'s B1 corporate family rating. The rating agency held the bank revolver rating to Ba2 from Ba3, the bank term loan rating to Ba2 from Ba3, and senior unsecured notes to B3 from B2. Moody's also upgraded Novelis Corp.'s bank term loan rating to Ba2 from Ba3. PLANUNG - ARCHITEKTUR: Liquidation Claims Due February 12 --------------------------------------------------------- Creditors of Planung-Architektur-Fotografie atelier mouve have until Feb. 12 to submit their claims to: Peter Tschappeler Liquidator Sahlistrasse 7 3012 Bern Switzerland The Debtor can be reached at: Planung-Architektur-Fotografie atelier mouve Berne Switzerland PMT CONSULTING: Creditors' Liquidation Claims Due February 12 ------------------------------------------------------------- Creditors of LLC PMT Consulting have until Feb. 12 to submit their claims to: JSC Industrieberatung Maier Liquidator Gewerbestrasse 10 4450 Sissach Basel-Country Switzerland The Debtor can be reached at: LLC PMT Consulting Sissach Basel-Country Switzerland SWISSAIR: Former Top Executives Deny Any Wrongdoing in Collapse --------------------------------------------------------------- Former top executives and board members of Swissair who have appeared in court all entered a plea of "not guilty" to the charges filed against them, Bloomberg News reports. These charges include damaging creditors, mismanagement, making false statements about the business, and forging documents. During the ongoing trial that began Jan. 16 in the District Court of Buelach near Zurich, most of the other defendants withheld testimony, with some of them replying only to the district judge and not the state prosecutor. Former CEO Mario Corti, who was chief executive of SAirGroup, Swissair's parent group, prior to its October 2001 demise, answered most questions, defending himself and criticizing the prosecution's arguments, Swiss Radio International reports. "The prosecutors based their [arguments] on the reports of an expert who doesn't know a thing," Mr. Corti commented during the second week of the trial. "I've never had anything to hide," he added. Due to the ongoing civil procedures, he declined to comment on Swissair's CHF243 million (EUR150 million) payment to Belgium's Sabena airlines in 2001, which was part of the group's strategy of buying minority shares in a number of smaller airlines. Experts claim this may have been a factor in the company's insolvency, Swiss Radio International relates. According to reports, Mr. Corti received in advance a salary of CHF12 million when he took over as SAirGroup chief in March 2001, after the airline posted a CHF2.9 billion loss and debts of up to CHF15 billion, Swiss Radio International reveals. Philippe Bruggisser, Swissair's chief executive officer prior to Mr. Corti, denied that he rearranged assets to hide debts and raised the company's balance sheet with illegal deals, Bloomberg News states. "We didn't do anything wrong," Mr. Bruggisser told the court. "We didn't hide money in an over-indebted company as the state prosecutor claims." The company's board of directors fired Mr. Bruggisser in January 2001 because they grew tired of his strategy of buying stakes in airlines such as Sabena. Swissair's fleet was grounded in October after the company went bankrupt. Responding to the question regarding the transfer of a stake in the ticketing service provider Galileo International Inc. to a holding unit, Roscor AG, Mr. Bruggisser said that the board supported the move in 1997 for tax reasons and because it planned to ultimately sell Galileo in 2001, Bloomberg News reports. The state prosecutor alleges that Swissair lost CHF100 million when Mr. Bruggisser and Chief Financial Officer Georges Schorderet merged Roscor with SAirLines AG in late 2000. Swissair also bought a stake in Poland's national carrier, Polskie Linie Lotnicze LOT SA, and made monthly payments to its CEO after Austrian Airlines Group reneged on its partnership deal in 1999, opting to join German rival Deutsche Lufthansa AG's Star Alliance instead, Bloomberg News relates. "We had made no efforts to open destinations to the east because we'd relied on Austrian Airlines to do that and had fed them Swiss Passengers," said Mr. Bruggisser. Mr. Bruggisser received almost CHF6 million after he was let go by the board. He was paid CHF2.2 million in cash and CHF3.75 million in pension payments. Swiss billionaire Thomas Schmidheiny also appeared in court, answered questions, and defended himself, saying that the airline collapsed not due to board mismanagement but because of the Sept. 11, 2001, terrorist attacks, Bloomberg News states. "As long as I was on the board, over-indebtedness was never an issue," said Mr. Schmidheiny. "The group was grounded because of the consequences of September 11," which led to a slump in aviation travel, he said. Mr. Schmidheiny, listed by Forbes Magazine as the world's 140th richest person in 2006, joins former board members Gerhardt Fischer, Benedict Hentsch, Andres Leuenberger, and Antoine Hoefliger in pleading "not guilty" at the Zurich trial. This is the first time that members of a board face criminal charges for a company's collapse. The trial is Switzerland's biggest corporate case and is due to run until March 9. About Swissair Swissair collapsed in 2001 after accumulating CHF17 billion in debt in relation to significant investments in a number of European airlines including Sabena, Air Liberte of France, and Turkish Airlines. It defaulted on the debt during the slump that followed the Sept. 11, 2001, terrorist attacks in the U.S. =========== T U R K E Y =========== MNG BANK: Fitch Holds D/E Rating on Weak Profitability ------------------------------------------------------ Fitch Ratings affirmed Turkey-based MNG Bank's ratings at Short- term 'B' and Individual 'D/E. Its foreign and local currency Issuer Default 'B-', National Long-term 'BBB' and Support '5' ratings remain on Rating Watch Positive. The Individual rating reflects MNG Bank's weak profitability, interest rate risk and stretched capitalization. Profitability during 2006 was adversely affected by narrowing margins and market volatility. However, most of these losses were subsequently reversed as markets gradually improved in the third quarter of 2006. Additionally, costs remain high relative to revenues and assets. Cash loans grew 59% in 2005 and an annualized 44% at the third quarter of 20056 as core corporate portfolio expanded while retail lending remained marginal. Asset quality further improved as non-performing loans declined, in absolute terms and as a proportion of total loans at end of third quarter of 2006. Total capital adequacy ratio was diminished to 11.3% at end of third quarter of 2006, which Fitch considers thin in the light of the bank's small size and poor earnings capability. MNG Bank plans to maintain its focus on small to medium-sized companies with substantial foreign trade volumes and to increase its factoring activity although this strategy has yet to bring materially improved results. MNG Bank stands to benefit from a healthy expansion of its customer base, which remains a main priority in the medium term. The bank would benefit from capital support to fund expansion of core banking activities. The Issuer Default, National Long-term and Support ratings remain on RWP pending the successful completion of the 91% acquisition of MNG Bank by Arab Bank plc's and BankMed. Arab Bank will own 50% while BankMed will have 41% of the bank. The RWP reflects the benefits and support that MNG Bank is expected to receive from its potential new shareholder Arab Bank. The acquisition will be finalized by the middle of first quarter of 2007. ============= U K R A I N E ============= ELEKTROCOM LLC: Claims Submission Deadline Set February 10 ---------------------------------------------------------- Creditors of LLC Elektrocom (code EDRPOU 31456731) have until Feb. 10 to submit written proofs of claim to: Jury Ignatchenko, Liquidator Kotovskiy Str. 9 Kozelschina Poltava Region Ukraine Tel/Fax: 8-044-234-71-39 The Economic Court of Kiev Region commenced bankruptcy proceedings against the company on Dec. 25, 2006, after finding it insolvent. The case is docketed under Case No. 24/905-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 Elektrocom Naumov Str. 23-b Kiev Region Ukraine GORLOVSKOE LLC: Claims Submission Deadline Set February 10 ---------------------------------------------------------- Creditors of LLC Gorlovskoe (code EDRPOU 30764637) have until Feb. 10 to submit written proofs of claim to: Alexander Tihonov, Liquidator Gagarin Str. 51a/40 Gorlovka 84627 Donetsk Region Ukraine The Economic Court of Donetsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 42/165b. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region Ukraine The Debtor can be reached at: LLC Gorlovskoe Rozhdestvenskiy Str. 34 Gorlovka 84640 Donetsk Region Ukraine KHARKOV UAZ-SERVICE: Claims Submission Deadline Set February 10 --------------------------------------------------------------- Creditors of OJSC Kharkov Uaz-Service (code EDRPOU 00232319) have until Feb. 10 to submit written proofs of claim to: V. Kravcov, Liquidator Geroev Truda Str. 29-b 61136 Kharkov Region Ukraine The Economic Court of Kharkov Region commenced bankruptcy proceedings against the company on Dec. 26, 2006, after finding it insolvent. The case is docketed under Case No. B-19/105-02. 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: OJSC Kharkov Uaz-Service October Revolution Str. 167 Kharkov Region Ukraine KREDITPROMBANK: Moody's Withdraws B2 Rating on Postponed Sale ------------------------------------------------------------- Moody's Investors Service withdrawn the B2 rating for the debut loan participation notes that were expected to be issued by HSBC Bank plc (UK) on a limited recourse basis for the sole purpose of funding a senior unsecured loan to Kreditprombank (Ukraine), due to postponement of the sale at the issuer's option because of unfavorable market conditions. Kreditprombank is headquartered in Kiev (Ukraine) and as of June 30, 2006, reported total IFRS assets and net income of US$919 million and US$3.6 million, respectively. KREMENNAYA FURNITURE: Claims Submission Deadline Set February 10 ---------------------------------------------------------------- Creditors of CJSC Kremennaya Furniture Centre (code EDRPOU 00275300) have until Feb. 10 to submit written proofs of claim to: Mikhail Klimenko, Liquidator October Str. 312 Lisichansk Lugansk Region Ukraine The Economic Court of Lugansk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 22/72 b. The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: CJSC Kremennaya Furniture Centre Titov Str. 1 Kremennaya 92900 Lugansk Region Ukraine PERVOMAYSK SILUET: Claims Submission Deadline Set February 10 ------------------------------------------------------------- Creditors of Pervomaysk Plant Siluet (code EDRPOU 03052865) have until Feb. 10 to submit written proofs of claim to: Roman Rachok, Liquidator Oboronnaya Str. 24 91033 Lugansk Region Ukraine The Economic Court of Lugansk Region commenced bankruptcy proceedings against the company on Dec. 7, 2006, after finding it insolvent. The case is docketed under Case No. 20/93 b. The Economic Court of Lugansk Region is located at: Geroiv VVV Square 3a 91000 Lugansk Region Ukraine The Debtor can be reached at: Pervomaysk Plant Siluet Bahmutskiy Str. 4 Pervomaysk 93200 Lugansk Region Ukraine SMEREKA LLC: Claims Submission Deadline Set February 10 ------------------------------------------------------- Creditors of LLC Smereka (code EDRPOU 31729195) have until Feb. 10 to submit written proofs of claim to: A. Rovniy, Liquidator Mir Str. 5 Komunist Kharkov District 62482 Kharkov Region Ukraine The Economic Court of Kharkov Region commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 11, 2006. The case is docketed under Case No. B-39/196-06. 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 Smereka Patrice Lumumba Str. 1 Novaya Vogolaga Kharkov Region Ukraine UKRSOTSBANK OJSC: S&P Puts B Prelim Rating to Sr. Unsecured Debt ---------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'B' preliminary rating to U.S. dollar-denominated senior unsecured loan participation notes to be issued by Credit Suisse Int'l. on a limited recourse basis for the sole purpose of funding a senior unsecured loan to Ukrsotsbank OJSC. At the same time, Standard & Poor's placed the 'B' preliminary rating of the notes on CreditWatch with positive implications. The rating on the loan participation notes reflects the ratings on Ukrsotsbank. The ratings on the latter reflect the bank's rapid loan growth, high, but reducing, single-party concentrations in lending, and intensified competition in the Ukrainian banking sector. Positive rating factors are the bank's good commercial franchise, good financial flexibility and liquidity, strengthened capitalization, stabilized political environment, and economic improvements in Ukraine. =========================== U N I T E D K I N G D O M =========================== A & J ENGINEERING: Names Liquidator to Wind Up Business ------------------------------------------------------- Eileen Theresa Frances Sale of Sale Smith & Co. Ltd. was appointed liquidator of A & J Engineering Ltd. on Jan. 19 for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Sale Smith & Co. Ltd. 111 Hagley Road Edgbaston Birmingham B16 8LB England ACME PAYROLL: Creditors' Meeting Slated for February 5 ------------------------------------------------------ Creditors of Acme Payroll Company Ltd. will meet at 11:30 a.m. on Feb. 5 at the offices of: UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 2 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 1. ADVANCE RECRUITMENT: Creditors' Meeting Slated for February 6 ------------------------------------------------------------- Creditors of Advance Recruitment (Leeds) Ltd. will meet at 11:30 a.m. on Feb. 6 at: Jackson Gregory & Co. 14 Wood Street Bolton BL1 1DZ England Roderick Julian Jones of Jackson Gregory & Co. will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require. ABITIBI-CONSOLIDATED: Inks All-Stock Merger Deal with Bowater ------------------------------------------------------------- Abitibi-Consolidated Inc. and Bowater Incorporated disclosed of a definitive agreement to combine in an all-stock merger of equals. The combination will create a new leader in publication papers -- an operationally and financially stronger company better able to meet changing customer needs, compete more effectively in an increasingly global market, adapt to lower demand for newsprint in North America, and deliver increased value to shareholders. The combined company, which will be called AbitibiBowater Inc., will have pro forma annual revenues of around US$7.9 billion or CDN$9.3 billion, making it the third largest publicly traded paper and forest products company in North America and the eight largest in the world. The current combined enterprise value of the two companies is in excess of US$8 billion or CDN$9.4 billion. John W. Weaver, president and chief executive officer of Abitibi-Consolidated, will be executive chairman of AbitibiBowater, and David J. Paterson, chairman, president and chief executive officer of Bowater, will be president and chief executive officer of AbitibiBowater. The AbitibiBowater Board of Directors will consist of 14 directors, seven from each company. AbitibiBowater's headquarters and executive office will be located in Montreal, Quebec, with a U.S. regional manufacturing and sales office in Greenville, South Carolina. The company, which will be incorporated in Delaware as the new parent company, will apply to list its shares on the New York and Toronto stock exchanges. Under the terms of the transaction, each common share of Abitibi-Consolidated will be exchanged for 0.06261 common share of AbitibiBowater, and each Bowater common share will be exchanged for 0.52 common share of AbitibiBowater. The exchange ratio will result in 48% of AbitibiBowater being owned by former Abitibi-Consolidated shareholders and 52% of AbitibiBowater being owned by former Bowater shareholders. The combination is expected to generate around US$250 million or CDN$295 million of annualized cost synergies from improved efficiencies in such areas as production, selling, general and administrative costs, distribution and procurement. These synergies are in addition to cost saving initiatives already in process at both companies. Mr. Weaver said, "The new AbitibiBowater will be a global leader headquartered in Canada with a brighter future than either company would have on its own. The combined company's ability to realize significant synergies will increase shareholder value, improve our financial flexibility and better position us to compete in today's increasingly competitive global marketplace. Combining our companies is also the best way to continue to contribute to the local and regional economies of the communities in which we operate." Mr. Paterson said, "This is a logical strategic step to address the realities of today's marketplace. A more efficient manufacturing platform will enable us to bring our customers better product quality, new product innovation, and improved logistical flexibility. Both Abitibi-Consolidated and Bowater shareholders will benefit from the upside potential of a financially stronger company that is able to generate significant cost synergies, improve its balance sheet, and compete more effectively." AbitibiBowater's product lines will include newsprint, uncoated and coated mechanical papers, market pulp, and wood products. The company will also be one of the world's leading consumers of recycled newspapers and magazines as it builds on the existing efforts of both companies to be leaders in environmentally sustainable production practices. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood product facilities located mainly in Eastern Canada and the Southeastern U.S. Pro forma combined paper production capacity is around 11.3 million tons per year and about 3.1 billion board feet of lumber. Transaction Details The exchanges of Abitibi-Consolidated and Bowater common shares for AbitibiBowater common shares will be tax deferred for U.S. resident holders of Abitibi-Consolidated and Bowater common shares. Taxable Canadian resident holders of Abitibi-Consolidated common shares may elect to receive on a tax-deferred basis exchangeable shares of a Canadian subsidiary of AbitibiBowater. AbitibiBowater will apply to list these exchangeable shares on the Toronto Stock Exchange. These shares will be exchangeable into AbitibiBowater common shares at the option of their holders. For Abitibi-Consolidated, the combination will be achieved through a Canadian Court-approved Plan of Arrangement requiring the affirmative vote of the holders of two-thirds of the Abitibi-Consolidated common shares present or represented by proxy at a meeting of Abitibi-Consolidated shareholders. For Bowater, the combination will be effected through a Delaware merger requiring the affirmative vote of a majority of all outstanding Bowater common shares at a meeting of Bowater shareholders. The combination has been approved unanimously by the Boards of Directors of both companies, which received fairness opinions from their respective financial advisors. The combination is subject to approval by the shareholders of both companies, regulatory approvals, and customary closing conditions. It will be completed in the third quarter of 2007. Abitibi-Consolidated and Bowater will continue to operate separately until the transaction closes. For Abitibi-Consolidated, CIBC World Markets Inc. and Credit Suisse Securities (USA) LLC acted as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP, Davies Ward Phillips & Vineberg LLP, and McCarthy T,trault LLP acted as legal advisors. For Bowater, Goldman, Sachs & Co. and UBS Investment Bank acted as financial advisors and Troutman Sanders LLP, Ogilvy Renault LLP, and Mayer, Brown, Rowe & Maw LLP acted as legal advisors. About Bowater Incorporated Bowater Inc. (NYSE: BOW, TSX: BWX) -- http://www.bowater.com/-- produces coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater has 12 pulp and paper mills in the United States, Canada, and South Korea. In North America, it also owns two converting facilities and 10 sawmills. Bowater's operations are supported by about 835,000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates six recycling plants and is one of the world's largest consumers of recycled newspapers and magazines. About Abitibi-Consolidated Inc. Abitibi-Consolidated Inc. (NYSE: ABY, TSX: A) -- http://www.abitibiconsolidated.com/-- is a global supplier in newsprint and commercial printing papers as well as a major producer of wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is among the largest recyclers of newspapers and magazines in North America, diverting annually around 1.9 million tons of waste paper from landfills. It also ranks first in Canada in terms of total certified woodlands. The Company supplies customers in around 70 countries including Canada, the United States and the United Kingdom. ABITIBI-CONSOLIDATED: Eyes Joint Venture for Ont. Power Plants -------------------------------------------------------------- Abitibi-Consolidated Inc. has entered into a binding letter of intent with the Caisse de depot et placement du Quebec to create a joint-venture for the company's Ontario hydroelectric generation facilities. The company will retain a 75% interest in the joint venture, called ACH Limited Partnership, while the Caisse will acquire a 25% interest. The Caisse has also provided a commitment to ACH Limited Partnership for a 10-year unsecured term loan of US$250 million, non-recourse to the company, to partially fund the acquisition of the facilities. The transaction, on a consolidated basis, is expected to yield gross proceeds of US$297.5 million to Abitibi-Consolidated. ACH Limited Partnership is intended to be Abitibi-Consolidated's growth vehicle in energy generation. Abitibi-Consolidated's substantial ownership interest in the joint-venture reflects the ongoing strategic importance of its electricity generation assets. The company will enter into agreements by virtue of which it will continue to operate and manage the facilities. Closing of the transaction is expected to take place in the first half of 2007 and is subject to execution of definitive agreements and certain other conditions and approvals. Scotia Capital and CIBC World Markets have advised the company in regards to this transaction. ACH Limited Partnership encompasses eight hydroelectric facilities located in Ontario, representing an aggregate installed capacity of 136.8 MW and a normalized annual generation of around 828 GWh. About Abitibi-Consolidated Abitibi-Consolidated, Inc. (TSX: A) (NYSE: ABY) -- http://www.abitibiconsolidated.com/-- produces newsprint and commercial printing paper products from its 45 operating facilities. The Company also recycler newspapers and magazines, diverting around 1.9 million tons of waste paper from landfills annually around 1.9 million tons of waste paper from landfills. It also ranks first in Canada in terms of total certified woodlands. The Company supplies customers in around 70 countries including Canada, the United States and the United Kingdom. * * * As reported in the Troubled Company Reporter on Nov. 17, 2006, Standard & Poor's Ratings Services revised its outlook on Abitibi-Consolidated to negative from stable. S&P affirmed the ratings on the company, including the long-term corporate credit rating at 'B+'. ABITIBI-CONSOLIDATED: Moody's Holds B1 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed Abitibi-Consolidated Inc.'s B1 corporate family, B2 senior unsecured and SGL-2 speculative grade liquidity ratings but revised the outlook to developing from stable. The action comes after the company's disclosure of a proposed merger with Bowater Incorporated, and is based on the assessment that the transaction is expected to have a minimal impact on the company's credit profile. In turn, this is based on the fact that both companies have the same ratings and all consideration will be non-cash. Consequently, there is no immediate impact on the relationship between debt and cash flow. In addition, the transaction's expected cost savings and synergy benefits, while potentially significant, are not sufficient to prompt a positive outlook or ratings upgrade. Indeed, with both companies being weakly positioned at the B1 level, the expected benefits serve only to improve relative positioning at the prevailing rating. Owing to the transaction not closing until September and the very significant uncertainties that exist, i.e. the vagaries of shareholder and regulatory approval, composition of a combined management team, formulation of board and financial policies, and the structural status of individual bond issues at each company vis-a-vis the other and vis-a-vis a yet-to-be arranged operating credit facility, the ratings outlook was changed to developing. Moody's considers both predecessor companies to be weakly positioned at the prevailing B1 level, with very poor credit protection measures only being partially off-set by favorable rating signals derived from business profile type measures such as aggregate size and scale and cost competitiveness. However, given the two companies' geographic and product line overlap, the prospective transaction provides good scope for significant cost savings and synergies. Moody's also expects the combined company, AbitibiBowater, Inc., to have an improved ability to appropriately anticipate the evolving supply-demand dynamic in the North American mechanical pulp-based communication paper market. Accordingly, Moody's expects the benefits of the business combination to cause future performance and credit protection measures more appropriate for the B1 rating level. In the interim, the prospect of the transaction's benefits forestalls adverse rating activity. It should be noted that the transaction does not address the fundamental issue of print media being disadvantaged relative to digital. The forces that have generated the past several years' very poor financial performance are in no way combated by this transaction. In addition, US$-denominated spot pricing for newsprint and uncoated mechanical papers has recently retreated from highs observed in mid-to-late 2006. This reverses a trend that had seen US$-denominated prices increase steadily over a four-year period. With the transaction not expected to close for several months, this development creates a concern that extraneous forces may swamp a significant proportion of the business combination's benefits before it can be consummated. This is especially the case given that a significant proportion of the expected benefits will not be realized until well into 2008. Accordingly, in the event the transaction does not proceed or is significantly delayed, or if business conditions deteriorate markedly, there is a potential for an adverse rating action. Outlook Actions: * Abitibi-Consolidated Company of Canada -- Outlook, Changed To Developing From Stable * Abitibi-Consolidated Finance L.P. -- Outlook, Changed To Developing From Stable * Abitibi-Consolidated Inc. -- Outlook, Changed To Developing From Stable * Donohue Forest Products Inc. -- Outlook, Changed To Developing From Stable Abitibi-Consolidated Inc., headquartered in Montreal, Quebec, is North America's leader in newsprint and uncoated mechanical paper and also has a significant lumber business. BLACKSTREET LTD: Creditors' Meeting Scheduled for February 6 ------------------------------------------------------------ Creditors of Blackstreet Ltd. will meet at 11:00 a.m. on Feb. 6 at the offices of: SPW Poppleton & Appleby Gable House 239 Regents Park Road London N3 3LF England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 2. BLOSSOMS NOTTINGHAM: Creditors' Meeting Scheduled for February 8 ---------------------------------------------------------------- Creditors of Blossoms (Nottingham) Ltd. will meet at 11:30 a.m. on Feb. 8 at the offices of: Elwell Watchorn & Saxton LLP 109 Swan Street Sileby Leicestershire LE12 7NN England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 7 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 6 and Feb. 7. Elwell Watchorn & Saxton -- http://www.ews-insolvency.co.uk/-- provides insolvency and recovery services. The firm's partners have considerable expertise in all formal areas of insolvency, both corporate and personal and have been offering turnaround advice without the need for formal insolvency. BOWDEN GLASS: Appoints Tenon Recovery to Administer Assets ---------------------------------------------------------- Carl Jackson and Nigel Fox of Tenon Recovery were appointed joint administrators of Bowden Glass Ltd. (Company Number 03207253) on Jan. 5. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Bowden Glass Ltd. can be reached at: Unit 15 10-12 Marshgate Lane London E15 2NH United Kingdom Tel: 020 8555 9660 Fax: 020 8519 5934 BRITISH AIRWAYS: Resumes Normal Operations; Travel Loads Light -------------------------------------------------------------- British Airways Plc is operating a full flying schedule after the Transport and General Workers' Union, representing 11,000 cabin crew employees of the airline, called off a planned 48- hour strike, according to published reports. However, according to BA, travel loads were light as many passengers had rebooked their tickets, flown earlier, or made other plans to avoid the strike days. The carrier had earlier canceled 1,300 flights in preparation for the strike action. As previously reported in the TCR-Europe on Jan. 30, the T&G decided to avert its scheduled strike on Tuesday and Wednesday after negotiations resulted in an agreement that ended the two- tier wage structure in the company, Tracy Alloway and Chad Thomas write for Bloomberg News. According to the report, the airline agreed to increase the top base pay of its flight attendants hired after 1997 to GBP19,418 a year from GBP15,748. The workers will receive the 4.6% wage increase this year and the rate of inflation in the second year, The Associated Press says. BA CEO Willie Walsh said, the agreement "puts in place a system to regulate how we manage sick leave." The union also called of its two other 72-hour strikes scheduled next month. 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 Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways carry these ratings: * Moody's Investors Service: -- Long-Term Corporate Family Rating: Ba1 -- Senior Unsecured Debt: Ba2 -- Outlook: Negative * Standard & Poor's: -- Long-Term Foreign Issuer Credit Rating: BB+ -- Long-Term Local Issuer Credit Rating: BB+ BYTRONIC INTERNATIONAL: Claims Filing Period Ends February 27 ------------------------------------------------------------- Creditors of Bytronic International Ltd. have until Feb. 27 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: C. H. I. Moore Liquidator K.J.Watkin & Co. Emerald House 20-22 Anchor Road Aldridge Walsall WS9 8PH England The company can be reached at: Bytronic International Ltd. 5b The Courtyard Reddicap Trading Estate Sutton Coldfield West Midlands B75 7BU England Tel: 0121 378 0613 Fax: 0121 311 1774 CAMERON UK: Creditors' Meeting Scheduled for February 13 -------------------------------------------------------- Creditors of Cameron (U.K.) Services Ltd. will meet at 11:00 a.m. on Feb. 13 at the offices of: Tomlinsons St. John's Court 72 Gartside Street Manchester M3 3EL England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 9. Tomlinsons -- http://www.tomlinsons.co.uk/-- specializes in all types of business recovery and insolvency procedures, as well as offering advice to companies and individuals who believe they may be heading towards, or are already in, financial difficulty. CANOPIUS MANAGING: Moody's Withdraws C+ Below Average Rating ------------------------------------------------------------ Moody's Investors Service withdrawn the C+ Below Average, stable outlook, performance rating of Lloyd's syndicate 44 -- Canopius Managing Agents Ltd. -- following the decision that the syndicate would effectively be placed into run-off with no new or renewal business being written for 2007. Syndicate 44 is a small Life syndicate with a capacity of GBP1.8m that is now backed 100% by an agency dedicated vehicle for 2007. The syndicate has ceased accepting new or renewal business from Jan. 1, with the syndicate effectively placed into run-off at Dec. 331, 2006. The syndicate will only accept policies re-signed from previous years of account and is also due to accept the RITC from the 2006 account at Dec. 31, 2008. In light of the syndicate ceasing to accept new or renewal business from 2007, Moody's has therefore withdrawn the C+ Below Average performance rating of the syndicate. The date of the preceding rating action was Sept. 25, 2006, when the syndicate's performance rating was downgraded to C+ Below Average, stable outlook. Canopius Syndicate 44 is a GBP1.8 million Life syndicate operating in the Lloyd's of London Insurance Market. CHAPTER III: Creditors' Meeting Slated for February 13 ------------------------------------------------------ Creditors of Chapter III Clothing Ltd. will meet at 11:00 a.m. on Feb. 13 at the offices of: Moore Stephens Victory House Admiralty Place Chatham Maritime Kent ME4 4QU England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 12 at the said address. David Ronald Elliott of Moore Stephens will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require. Moore Stephens -- http://www.moorestephens.co.uk/-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its U.K. network comprises over 1,400 partners and staff. CHRIS PELLING: G. W. Rhodes Leads Liquidation Procedure ------------------------------------------------------- G. W. Rhodes of Begbies Traynor was appointed liquidator of Chris Pelling (Motor Accessories) Ltd. on Jan. 18 for the creditors' voluntary winding-up procedure. The Liquidator can be reached at: Begbies Traynor 2-3 Pavilion Buildings Brighton East Sussex BN1 1EE England CIRCATEX GROUP: Claims Filing Period Ends March 31 -------------------------------------------------- Creditors of Circatex Group Ltd. have until March 31 to send their names and addresses and particulars of their debts or claims, and the names and addresses of the Solicitors (if any), to: Robert Hunter Kelly Joint Liquidator Ernst & Young LLP PO Box 61 Cloth Hall Court 14 King Street Leeds LS1 2JN England 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 COLINS BRIDEWELL: Brings In Liquidators from Harrisons ------------------------------------------------------ John C. Sallabank and Paul R. Boyle of Harrisons were appointed joint liquidators of Colins Bridewell Restaurant Ltd. on Jan. 22 for the creditors' voluntary winding-up proceeding. Harrisons -- http://www.harrisons.uk.com/-- provides advice and so lutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. Colins Bridewell Restaurant Ltd. can be reached at: Colins Bridewell Restaurant Ltd. Off Duke St. Campbell SQ Liverpool L1 5BL England Tel: 0151 707 8003 Fax: 0151 707 8038 COLLINS & AIKMAN: Court Approves North Pointe Lease Amendment ------------------------------------------------------------- The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan approved an amendment to the lease agreement of Collins and Aikman Corp. and its debtor- affiliates with North Pointe Investors LLC. The Debtors are authorized to pay the US$59,060 contingency amount to North Pointe. The automatic stay will be terminated to allow North Pointe to exercise any and all state law remedies with respect to the existing lease, as modified by the Amendment, and the premises, including immediate possession of the Premises, upon the earlier of the entry of an order rejecting the lease pursuant to Section 365 of the Bankruptcy Code, and April 30, 2007. As previously reported in the TCR-Europe on Jan. 16, the Debtors have been evaluating their real property leases and interests since the Petition Date. During the course of the evaluation, the Debtors recognized that their lease on 91,986 square feet of office and manufacturing space in the building located at 11149 Lindbergh Business Court, St. Louis, Missouri, was scheduled to expire on April 30, 2007. Under the terms of the existing Lease, the Debtors are required to vacate the premises by Dec. 31, 2006, if the Debtors do not agree to extend the lease term beyond the expiration date. The Debtors have determined that the premises is necessary to their businesses and operations through the Expiration Date, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, tells the Court. The Debtors use the Premises as a final assembly point for a particular component that DaimlerChrysler Corp. installs in its manufacture of minivans at a nearby DCC factory. The Debtors are required to produce the parts under postpetition purchase orders with DCC and the Debtors' recent agreement with their principal customers. Accordingly, the Debtors engaged in a series of good-faith, arm's-length negotiations with the Lessor, North Pointe Investors LLC, to amend the Existing Lease to grant the Debtors the right to remain in possession of the Premises until the Expiration Date without requiring the Debtors to renew or extend the Lease term. The Amendment will be the third lease amendment with respect to the Premises. TYL Real Estate Inc., and Textron Automotive Exteriors entered into a lease agreement dated Dec. 1, 1994. The first amendment to the lease dated Aug. 3, 1999, was between BLB Real Estate L.L.C., as successor to TYL, and Textron Automotive Company Inc. The second amendment dated Oct. 31, 2004, was between North Pointe, as successor to BLB, and Collins & Aikman Products Co., Mr. Schrock informs the Court. The significant terms of the Amendment include: * North Pointe will grant the Debtors the right to remain on the Premises until April 30, 2007, in exchange for US$59,060 to be paid by the Debtors on or before Jan. 18, 2007; * the Debtors' obligation to pay rent will continue until April 30, 2007; * the Lessor will be allowed to enter into a lease of the Premises to any third party provided that the third party tenant will not be allowed to occupy the Premises before May 1, 2007; * on April 30, 2007, or upon an earlier rejection of the Existing Lease, the Debtors will surrender up peaceable possession of the Premises in the same condition as the Premises are in on Nov. 1, 2006; reasonable wear and tear and casualty excepted; * in the event that the Debtors will remain in possession of the Premises beyond the expiration of the lease term, whether by limitation or forfeiture, the party will pay double the rent amount under the lease during the holdover period and will indemnify the Lessor from any and all loss, cost or expense suffered by the Lessor; and * the Amendment will be automatically null and void unless on or before Jan. 18, 2007, the Court enters an order providing that the Amendment is approved, and the automatic stay will be terminated so as to allow the Lessor to exercise any and all state law remedies with respect to the Existing Lease. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corp. -- 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 around 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 US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CORE DISTRIBUTION: Liquidator Sets March 1 Claims Bar Date ---------------------------------------------------------- Creditors of Core Distribution (U.K.) Ltd. have until March 1 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: Matthew John Waghorn Liquidator Oury Clark Herschel House 58 Herschel Street Slough Berkshire SL1 1PG CORUS GROUP: Tata Steel Outbids CSN with GBP5.7 Billion Bid ----------------------------------------------------------- Tata Steel Ltd. won an auction for Corus Group Plc over Companhia Siderurgica Nacional after offering investors 608 pence per share in cash, or GBP5.7 billion (US$11.3 billion), Debarati Roy and Claudia Carpenter write for Bloomberg News. According to the British Takeover Panel, Tata outbid CSN's final offer of 603 pence per share. The auction started at 4:30 p.m. in London yesterday. CSN and Tata were eyeing to buy Corus as they seek to become significant players in the consolidating steel industry, Reuters relates. Bloomberg says the acquisition will enable Tata to add finishing mills in Europe that supply automakers Ford Motor Co. and Volvo AB to plants in India. Moody's Investors Service and Standard & Poor's, however, warned to lower Tata's debt rating. "While the Corus acquisition would greatly enhance Tata's scale, the size of the transaction would represent a substantial financial challenge," Moody's Investors Service said. "The current resultant high leverage, on a consolidated basis, will likely test the company's financial strength." As previously reported in the TCR-Europe on Jan. 29, the auction process requires a difference of at least five pence for each round of the bid. If a competitive situation continues to exist, a final round would be held to give a chance to the offerors to outbid the other within a ceiling approved by the panel. The European Commission previously cleared CSN's proposed GBP4.9-billion takeover bid for Corus. According to the commission, a CSN takeover would not hurt competition in Europe as the companies have only limited overlaps for semi-finished and finished carbon steel products. Overlaps were "below a level where the companies could affect either the total quantity or the prevailing price in the market," the commission said. The British takeover regulator cleared Tata Steel's bid for Corus last month. CSN Bid As reported in the TCR-Europe on Dec. 13, 2006, CSN increased its purchase offer for Corus to US$9.6 billion or 515 pence a share, topping Tata Steel's 500 pence per share offer. Companhia Siderurgica's proposed purchase of Corus will be funded through a GBP4.35 billion of debt underwritten by Barclays Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says, citing Chief Financial Officer Otavio Lazcano as saying. Meanwhile, Companhia Siderurgica promised to pay GBP138 million to fund the deficit in the Corus Engineering Steels Pension Scheme, Bloomberg says. Also, the steelmaker will raise the contribution rate on the British Steel Pension Scheme to 12% from 10% until March 31, 2009. The company's success in acquiring Corus hinges on the unions' support, according to published reports. Tata Offer As reported in the TCR-Europe on Dec. 11, 2006, the Boards of Directors of Tata Steel Ltd. and Corus Group plc have agreed the terms of an increased recommended revised acquisition at a price of 500 pence in cash per Corus share. Under the terms of the Revised Acquisition, Corus shareholders will be entitled to receive 500 pence in cash for each Corus Share. This represents a price of 1,000 pence in cash for each Corus ADS. The terms of the Revised Acquisition value the entire existing issued and to be issued share capital of Corus at approximately GBP4.7 billion and the Revised Price represents: -- an increase of approximately 10% compared with 455 pence, being the Price under the original terms of the Acquisition; -- on an enterprise value basis, a multiple of approximately 7.5x EBITDA from continuing operations for the 12 months to Sept. 30, 2006 (excluding the non-recurring pension credit of GBP96 million) and a multiple of approximately 5.9x EBITDA from continuing operations for the year ended Dec. 31, 2005; -- a premium of approximately 38.7% to the average closing mid-market price of 360.5 pence per Corus Share for the 12 months ended Oct. 4, 2006, being the last business day before the announcement by Tata Steel that it was evaluating various opportunities including Corus; and -- a premium of approximately 22.7% to the closing mid-market price of 407.5 pence per Corus Share on Oct. 4, 2006, being the last business day before the announcement by Tata Steel that it was evaluating various opportunities Including Corus. The terms of the Revised Acquisition remain subject to the conditions and do not affect Tata Steel's intentions regarding the business of Corus, its management, employees and locations, nor the proposals relating to Corus's pension schemes, the Corus Share Schemes, Convertible Bonds or cancellation of the Deferred Shares. Tata Steel is advised by: NM Rothschild & Sons Ltd. New Court, Saint Swithin's Lane London EC4P 4DU United Kingdom -- and -- Deutsche Bank AG Taunusanlage 12 60262 Frankfurt Am Main Germany -- and -- ABN Amro Holding NV Hansalaya Building 15, Barakhamba Road New Delhi 110001 Corus Group is advised by: Credit Suisse Group One Cabot Square London E14 4QJ -- and -- JPMorgan Cazenove 20 Moorgate London EC2R 6DA United Kingdom -- and -- HSBC Holdings Plc 8 Canada Square, Level 4 London E14 5HQ United Kingdom Companhia Siderurgica is advised by: Lazard Ltd. Signatura Lazard Av. Brigadeiro Faria Lima 2277 8, Andar SP 01452-000 -- and -- Goldman Sachs Group Inc. 85 Broad Street New York, NY 10004 -- and -- UBS AG Avenida Brigadeiro Faria Lima 3729 8 9 e 10, Andar Jardim Paulista SP 04538-133 About Companhia Siderurgica Nacional Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Portugal and the U.S. About Tata Steel Established in 1907, Tata Steel is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). 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 Ltd. 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. CREATION ADM: Names David N. Kaye as Administrator -------------------------------------------------- David N. Kaye of Crawfords was named administrator of Creation ADM (U.K.) Ltd. (Company Number 4907377) on Jan. 2. The administrator can be reached at: David N. Kaye Crawfords Stanton House 41 Blackfriars Road Salford Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 Creation ADM (U.K.) Ltd. can be reached at: 4th Floor Fourways House 57 Hilton Street Manchester Lancashire M1 2EJ United Kingdom Tel: 0161 236 0123 CREATION WINDOWS: Joint Liquidators Take Over Operations -------------------------------------------------------- Nedim Ailyan and Andrew Tate of Abbott Fielding were appointed joint liquidators of Creation Windows & Conservatories Ltd. on Jan. 17 for the creditors' voluntary winding-up procedure. The company can be reached at: Creation Windows & Conservatories Ltd. Capital House 107 Upper Wickham Lane Welling Kent DA16 3AG England Tel: 020 8316 6776 Fax: 020 8316 2111 D & D SPORTS: Taps Jane Walker to Liquidate Assets -------------------------------------------------- Jane Walker of Errington Walker Ltd. was appointed liquidator of D & D Sports & Leisure Ltd. on Jan. 22 for the creditors' voluntary winding-up proceeding. The Liquidator can be reached at: Errington Walker Ltd. PO Box 9344 Dorridge Solihull West Midlands B93 8YP England D & S CONTRACTORS: Appoints Liquidator from Begbies Traynor ----------------------------------------------------------- Richard Andrew Segal of Begbies Traynor was appointed liquidator of D & S Contractors Ltd. on Jan. 18 for the creditors' voluntary winding-up proceeding. Mr. Segal can be reached at: Begbies Traynor The Old Exchange 234 Southchurch Road Southend-on-Sea Essex SS1 2EG England DATACOM INSTALLATIONS: Creditors' Meeting Slated for February 7 --------------------------------------------------------------- Creditors of Datacom Installations Ltd. will meet at 10:30 a.m. on Feb. 7 at: Begbies Traynor 1 Winckley Court Chapel Street Preston Lancashire PR1 8BU England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 6 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 5. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. DAVID MICHAEL: Brings In Begbies Traynor to Administer Assets ------------------------------------------------------------- Paul Stanley and Stephen L Conn of Begbies Traynor were appointed joint administrators of David Michael Interiors Ltd. (Company Number 02958032) on Jan. 11. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. David Michael Interiors Ltd. can be reached at: Unit 8 Moss Lane Industrial Estate Moss Lane Royton Oldham Lancashire OL2 6HR United Kingdom Tel: 01706 290 900 Fax: 01706 390 901 DELTA GRAPHICS: Appoints Richard Long as Administrator ------------------------------------------------------ Richard Williams James Long of Richard Long and Co. was appointed administrator of Delta Graphics Ltd. (Company Number 1612086) on Jan. 17. The administrator can be reached at: Richard Long & Co. Castlegate House 36 Castle Street Hertford Hertfordshire SG14 1HH United Kingdom Tel: 01992 503372 Fax: 01992 503373 E-mail: jbissett@richardlong.co.uk Delta Graphics Ltd. can be reached at: Church Street Ware Hertfordshire SG12 9EN United Kingdom Tel: 01920 460 311 Fax: 01920 463 883 DOCKGUARD ENGINEERING: Taps Administrators from Rothman Pantall --------------------------------------------------------------- R D Smailes and S B Ryman of Rothman Pantall & Co. were appointed joint administrators of Dockguard Engineering Ltd. (Company Number 03055867) on Ja n. 2. Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- provides financial accounting and corporate services. Dockguard Engineering Ltd. can be reached at: Leagrave Road Luton Bedfordshire LU3 1RJ United Kingdom Tel: 01582 876 007 Fax: 01582 876 839 DURA AUTOMOTIVE: Judge Carey OKs Kramer Levin as Panel's Counsel ---------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in Dura Automotive Systems Inc. and its debtor-affiliates' chapter 11 cases to retain Kramer Levin Naftalis & Frankel LLP as its counsel, effective as of Nov. 7, 2006. As reported in the Troubled Company Reporter on Jan. 9, 2007, in addition to acting as primary spokesman for the Committee, Kramer Framer Levin's services will include, without limitation, assisting, advising and representing the Committee with respect to these matters: 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 be paid on an hourly basis based on its customary rates: 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. The firm regularly charges its clients for the expenses and disbursements incurred in connection with the client's case, including, inter alia, word processing, secretarial time, telecommunications, photocopying, postage and package delivery charges, court fees, transcript costs, travel expenses, expenses for "working meals" and computer-aided research. Thomas Moers Mayer, Esq., a member at Kramer Levin, assured 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. About DURA Automotive Systems Inc. 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. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Court Okays Chanin Capital as Panel's Advisor -------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors to retain Chanin Capital Partners as its financial advisors, nunc pro tunc Nov. 10, 2006, in Dura Automotive Systems Inc. and its debtor-affiliates' chapter 11 cases. As reported in the Troubled Company Reporter on Jan. 9, 2007, the Committee needs Chanin Capital's assistance in collecting and analyzing financial and other information in relation to the Debtors' Chapter 11 cases. The Committee expects the firm to: (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 of 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, disclosed 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 assured 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 attestd that Chanin Capital is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About DURA Automotive Systems Inc. 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. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ECLIPSE MOTOR: Creditors' Meeting Scheduled for February 6 ---------------------------------------------------------- Creditors of Eclipse Motor Bodies Ltd. will meet at noon on Feb. 6 at: Milner Boardman & Partners Century House Ashley Road Hale Cheshire WA15 9TG England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 5 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 2. Milner Boardman -- http://www.milnerboardman.co.uk/-- provides financial accounting and business advisory services. ENRON GAS: Creditors Confirm Liquidators' Appointment ----------------------------------------------------- Creditors of Enron Gas Construction Ltd. confirmed Jan. 19 the appointment of Ian Christopher Oakley Smith and David John Blenkarn of PricewaterhouseCoopers LLP as joint liquidators of the company. 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. EPITOME LEISURE: Brings In Administrators from Grant Thornton ------------------------------------------------------------- Joseph P McLean and Keith Hinds of Grant Thornton U.K. LLP were appointed joint administrators of Epitome Leisure Ltd. (Company Number 05000521) on Jan. 2. Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. Epitome Leisure Ltd. can be reached at: Mosley Street Newcastle Upon Tyne Tyne and Wear NE1 1DF United Kingdom Tel: 0191 261 6439 EURO SHEET: Appoints Cresswall Associates as Administrators ----------------------------------------------------------- Gordon Craig and John Christopher Sallabank of Cresswall Associates Ltd. were appointed joint administrators of Euro Sheet Plastics Ltd. (Company Number 04346420) on Dec. 22, 2006. The administrators can be reached at: Gordon Craig and John Christopher Sallabank Cresswall Associates Ltd. West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Euro Sheet Plastics Ltd. can be reached at: Unit 1-3 Premier Mill Hartley Street Great Harwood Blackburn Lancashire BB6 7SR United Kingdom Tel: 01254 886 662 Fax: 01254 885 332 EXPELBECK LTD: Creditors' Meeting Scheduled for February 7 ---------------------------------------------------------- Creditors of Expelbeck Ltd. will meet at 3:00 p.m. on Feb. 7 at: Smith & Williamson Ltd. No.1 St. Swithin Street Worcester WR1 2PY England A list of names and addresses of the company's creditors will be available for inspection free of charge on Feb. 5 at the said address. FASCIA MANIA: Westminster Bank Taps Begbies Traynor as Receivers ---------------------------------------------------------------- National Westminster Bank Plc. appointed Peter Andrew Blair and Richard Albert Brock Saville of Begbies Traynor joint administrative receivers of Fascia Mania Ltd. (Company Number 03088337) on Dec. 21, 2006. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Fascia Mania Ltd. can be reached at: 1287 London Road Alvaston Derby Derbyshire DE24 8QN United Kingdom Tel: 0800 975 7577 FINELINE SHOPFITTERS: Creditors' Meeting Slated for February 7 -------------------------------------------------------------- Creditors of Fineline Shopfitters Ltd. will meet at 11:30 a.m. on Feb. 7 at: Smith & Williamson Ltd. No.1 St. Swithin Street Worcester WR1 2PY England A list of names and addresses of the company's creditors will be available for inspection free of charge on Feb. 5. FIRST CLASS: Brings In Administrators from Antony Batty ------------------------------------------------------- William Antony Batty and Stephen John Evans of Antony Batty & Co. were appointed joint administrators of First Class Mortgages Ltd. (Company Number 03757385) on Jan. 9 The administrators can be reached at: William Antony Batty and Stephen John Evans Antony Batty & Co. 3 Field Court Grays Inn London WC1R 5EF United Kingdom Tel: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com First Class Mortgages Ltd. can be reached at: Crown House Linton Road Barking Essex IG11 8HG United Kingdom Tel: 020 8591 6000 Fax: 020 8591 2112 FITZROY GREEN: Creditors' Meeting Scheduled for February 15 ----------------------------------------------------------- Creditors of Fitzroy Green Ltd. will meet at 11:00 a.m. on Feb. 15 at the offices of: SPW Poppleton & Appleby Gable House 239 Regents Park Road London N3 3LF England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 13. FONIX LTD: Taps Joint Administrators from KPMG LLP -------------------------------------------------- Kevin Roy Mawer and Brian Green of KPMG LLP were appointed joint administrators of Fonix Ltd. (Company Number 05043319) on Jan. 19. 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 Sheffield, England, Fonix Ltd. -- http://www.fonixmobility.com/-- operates as a cellular phone distributor. FORD MOTOR: U.S. Market Rank May Fall by Two Notches, CEO Says -------------------------------------------------------------- Ford Motor Co. may fall from second to fourth place this year in the American market, behind General Motors Corp., Toyota Motor Corp., and DaimlerChrysler AG, Micheline Maynard of The New York Times reports, citing Alan R. Mulally, the company's president and chief executive, as saying. Mr. Mulally's forecast of a much smaller Ford follows the release of the automaker's preliminary financial results for the year and quarter ended Dec. 31, 2006. In its financial report, Ford posted US$12.75 billion in losses against US$160.1 billion in revenues for the full year 2006, compared with US$1.4 billion in net profit against US$176.9 billion in revenues for 2005. Ford also posted US$5.76 billion in net loss against US$40.3 billion in revenues for the fourth quarter of 2006, compared with US$74 million in net loss against US$46.3 billion in revenues for the same period in 2005. Full-text copies of Ford Motor Co.'s 2006 results are available at no charge at: http://researcharchives.com/t/s?190d Commenting on the results, Mr. Mulally said, "we began aggressive actions in 2006 to restructure our automotive business so we can operate profitably at lower volumes and with a product mix that better reflects consumer demand for smaller, more fuel efficient vehicles. We fully recognize our business reality and are dealing with it. We have a plan and we are on track to deliver." Deep Trouble Analysts, however, are skeptical that Ford's products are strong enough to turn the company around, AFX News relays. "There is no question that Ford is in deep trouble -- probably the worst trouble they have been in since the Depression," Gerald Meyers, a University of Michigan business professor and former chief executive of American Motors Corp, told Bloomberg News. "It is going to be a while before it gets out." "The basic story of Ford's stunning collapse in its home-market profitability remains the same," David Healy, Burnham Securities analyst, told Reuters. "Ford's finances were wrecked by the collapse in volume and pricing of its most profitable truck models." Ford's losses are likely to have huge impact on its Credit- default swaps -- financial instruments based on bonds and loans that are used to speculate on a company's ability to repay debt, Mark Altherr, a Credit Suisse Group analyst in New York, said. Credit-default swap prices for Ford debt will continue to tighten "unless there are big negative surprises to the downside, in this market," Mr. Altherr stressed. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (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 Corp. * * * As reported in the Troubled Company Reporter-Europe on Dec. 13,2006, 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. FORD MOTOR: Loss Wasn't A Surprise, Says UAW President ------------------------------------------------------ United Auto Workers president Ron Gettelfinger said Monday that Ford Motor Co.'s loss didn't come as a surprise, Bryce G. Hoffman of The Detroit News reports. As reported in the Troubled Company Reporter-Europe on Jan. 26, Ford released preliminary financial results disclosing US$12.75 billion in losses for the full year 2006 compared with a US$1.4 billion net profit in 2005. Detroit News further reports that, speaking to Detroit radio station WJR, Mr. Gettelfinger said that he knew Ford was "headed down a bad road" after reviewing the company's books a year ago. "That's why we made the movement that we did on healthcare," Detroit New quotes Mr. Gettelfinger, referring to an agreement between the company and UAW to cut some retiree healthcare benefits. However, he added that Ford "is in a pretty strong position right now. They've got financing behind them. We're looking forward to them pulling this thing out." Detroit News further reports that the union is currently in talks with the company regarding its planned bonuses for white- collar employees. "We have discussed the fact that we would be making concessions and (salaried workers) would be getting bonuses. The discussions that we have with the corporation are between us and them." Detroit News relates quoting Mr. Gettelfinger. Headquartered in Dearborn, Michigan, Ford Motor Co. (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 Corp. * * * 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. FREIGHT CARE: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of Freight Care Ltd. confirmed on Jan. 23 the company's resolutions for voluntary liquidation and the appointment of I. P. Sykes of Begbies Traynor as liquidator. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Freight Care Ltd. can be reached at: Unit 3 Elliott Industrial Park Eastern Road Aldershot Hampshire GU124TF England Tel: 01252 352 215 Fax: 01252 333 551 GARDEN HOUSE: Taps Begbies Traynor to Administer Assets ----------------------------- -------------------------- Timothy J E Dolder and Neil J Mather of Begbies Traynor (South) LLP were appointed joint administrators of Garden House Press Ltd. (Company Number 02578132) on Jan. 9. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Garden House Press Ltd. can be reached at: G H P House 23 Aintree Road Perivale Greenford Middlesex UB6 7LA United Kingdom Tel: 0870 777 3300 Fax: 020 8357 3301 GAVIN CONSTRUCTION: Appoints Administrators from F A Simms ---------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners Plc were appointed joint administrators of Gavin Construction (Leicester) Ltd. (Company Number 4458940) on Dec. 20, 2006. The administrators can be reached at: Richard Frank Simms and Martin Richard Buttriss F A Simms & Partners Plc Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP United Kingdom Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com Gavin Construction (Leicester) Ltd. can be reached at: 13 University Road Leicester Leicestershire LE1 7RA United Kingdom Tel: 0116 239 4276 GLOBAL HIGH: Moody's Assigns B Bond Fund Credit Rating ------------------------------------------------------ Moody's Investors Service assigned a bond fund credit rating of B and a market risk rating of MR4 to the Global High Yield Bond Fund of the Julius Baer Multibond Investment Company. The fund's credit rating reflects the high credit risk of the bond portfolio's investments. Moody's noted the portfolio's good diversification by sector and issuer. Moody's also cited the advisor's disciplined and risk- controlled investment strategy framework, its strong risk management capabilities and well-established team approach, the high quality of its investment tools and the strength of its trading, compliance processes and systems. The MR4 market risk rating is related to the fund's high yield credit risk exposures and sector bets. Julius Baer Multibond is an umbrella-type open-ended Investment Company with variable capital organized under the laws of Luxembourg and operating under UCITS III regulations. The fund, which was launched on December 17, 2002 and is sold mainly to retail clients with a T+3 settlement period, thus reducing the liquidity risk that could arise from large and unexpected redemptions, is denominated in Euro. The fund's manager, Bank Julius Baer & Co. AG., has delegated the investment management advisory function to New York-based Julius Baer Investments LLC. Dexia Investor Services Bank S.A is the fund's administrator and custodian. The fund's objective is to achieve above-average returns in the long term while observing the principle of risk diversification, through investing at least two-thirds of its assets in fixed- interest or floating-rate securities issued by issuers with a maximum rating of BB+ or equivalent. In order to reduce risks, issuers are carefully monitored and widely diversified. The fund can invest in any security that ranks senior to the equity of underlying issuers, including, but not limited to, bonds, debentures, loan participation certificates, asset-backed securities, convertible bonds, and preferred stocks. The fund's benchmark is the ML Global HY Bond Constr (EUR hedged) index. Relative to its benchmark, the tracking error can range from 0% to 6%. Although the index does not include issuers with less than US$100 million outstanding, the fund can invest in such issues. The fund may also establish positions in convertible bonds, asset-backed securities, and preferred stocks that are not in the index. In addition, the fund may invest in securities that carry a higher rating than those assigned to securities which are found in the index. The basis for the fund's credit rating is predicated on its current portfolio profile and investment strategy. The weighted average expected loss of the GHYBF's portfolio is comparable to the expected loss of a fixed-income security rated B with a ten- year maturity. The GHBF's market risk rating of MR4 reflects its sector bets and high yield credit risk exposure and, to a lesser extent, its duration profile. Duration is not actively managed, but fixed income futures can be used from time to time to hedge interest- rate risk. The fund's duration at the end of September 2006 was 5 years. The fund invests in securities denominated in Euro, Sterling, Swiss Franc, Canadian dollars, but mainly in US dollars. All currency exposures are hedged back to Euro. Calculated since inception, the standard deviation of the GHYBF's net asset value was 4.82% at the end of September 2006, well within the boundaries of the MR4 rating. Bank Julius Baer & Co. AG, established in 1890, had CHF197 billion in assets under management at the end of December 2005. Julius Baer Asset Management focuses on the Swiss and European retail and institutional markets and offers a comprehensive range of investment funds (equity funds, bond funds, cash funds, strategy funds, alternative funds) to investors. Moody's money market and bond fund ratings are opinions on the investment quality of shares in mutual funds, and similar investment vehicles that principally invest in short-term and long-term fixed income obligations, respectively. The ratings are not intended to consider the prospective performance of a fund with respect to appreciation, volatility of net asset value, or yield. Funds rated B are judged to be of an investment quality similar to B-rated fixed income obligations - - that is, they are considered speculative. Moody's market risk ratings are opinions on the relative degree on volatility of a rated fund's net asset value. Funds exhibiting the least sensitivity to market changes will receive an MR1, whilst those exhibiting the most sensitivity will be rated MR5. GOLBORNE DEVELOPMENTS: Creditors' Meeting Slated for February 13 ---------------------------------------------------------------- Creditors of Golborne Developments Ltd. will meet at 2:30 p.m. on Feb. 13 at: Parsonage Chambers 3 The Parsonage Manchester M3 2HW England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 12 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 9. HOMERTON TYRES: Joint Liquidators Take Over Operations ------------------------------------------------------ John Alfred George Alexander and Patricia Kay Hartley-Mills of Carter Backer Winter were appointed joint liquidators of Homerton Tyres Ltd. on Jan. 19 for the creditors' voluntary winding-up proceeding. The company can be reached at: Homerton Tyres Ltd. Lukes Place Green Lane Stanmore Middlesex HA7 3AH England Tel: 020 8385 7928 HYTYME MANAGEMENT: Appoints Liquidators from Vantis --------------------------------------------------- P. Atkinson and G. Mummery of Vantis Business Recovery Services were appointed joint liquidators of Hytyme Management Services Ltd. on Jan. 8 for the creditors' voluntary winding-up procedure. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. Hytyme Management Services Ltd. can be reached at: 261 Barry Road London SE220JT England Tel: 020 8299 3333 Fax: 020 8299 4120 J W S LANDSCAPES: Claims Filing Period Ends February 9 ------------------------------------------------------ Creditors of J W S Landscapes Ltd. have until Feb. 9 to send their names and addresses with particulars of their debts or claims to: Timothy Calverley Liquidator Haines Watts First Floor Park House Park Square West Leeds LS1 2PS England The company can be reached at: J W S Landscapes Ltd. Unit 11 All Saints Industrial Estate Darlington Road Shildon County Durham DL4 2RD England Tel: 01388 774 348 Fax: 01388 774 955 KINGSWAY DECORATORS: Creditors' Claims Due March 2 -------------------------------------------------- Creditors of Kingsway Decorators Ltd. (formerly Horne Construction (Liverpool) Ltd.) have until March 2 to send their names and addresses with particulars of their debts or claims to: David Moore Liquidator Begbies Traynor No.1 Old Hall Street Liverpool L3 9HF England The company can be reached at: Kingsway Decorators Ltd. 11 Hatton Garden Liverpool Merseyside L3 2HA England Tel: 0151 236 2550 LIGHTWAVE LTD: Hires Liquidator from UHY Hacker Young ----------------------------------------------------- Robert Edward Caunce Cook of UHY Hacker Young was appointed liquidator of Lightwave Ltd. on Jan. 22 for the creditors' voluntary winding-up proceeding. The Liquidator can be reached at: UHY Hacker Young St. James Building 79 Oxford Street Manchester M1 6HT England MUSIC ZONE: Administrator Unable to Find Buyer; Closes 72 Stores ---------------------------------------------------------------- William Kenneth Dawson of Deloitte and Touche LLP, the administrator for Music Zone Services Ltd., admitted he could not find a buyer for the company's remaining 72 stores, according to published reports. "It has not been possible to find a buyer for the business in the time available and it is no longer viable to continue trading," a Deloitte spokesman told the Evening Standard. An additional 800 jobs will be lost as Mr. Dawson ordered Jan. 26, the closure of the rest of the remaining stores. Mr. Dawson ordered an initial 31-store closure with 325 redundancies. "Whilst discussions continue as regards the business, trading has ceased at this time as there is no certainty that any sale can be achieved," Deloitte said in a statement. Music Zone Services Ltd. and its parent company Music Zone Holdings Ltd. went into administration on Jan. 3. According to The Times, the problems at the 103-store chain came a year after it almost doubled its sized when it bought rival music chain MVC from insolvency. According to the report, Music Zone's accounts filed with the Companies House for the year ended May 31, 2005, showed a pre- tax loss of GBP4,000 compared with GBP397,000 profit in 2004. Sales for the year ended May 31, 2005, were from GBP58.4 million to GBP70 million. Headquartered in London, England Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. Headquartered in Stockport, England, Music Zone Services Ltd. -- http://www.musiczone.co.uk/-- is a private equity-backed music retailer operating 104 stores across the U.K. It employs 1,100 staff. NASDAQ STOCK: Keeps Bid for LSE at US$24.42 Per Share ----------------------------------------------------- Nasdaq Stock Market Inc. said it will not raise its US$24.42 offer for London Stock Exchange PLC after LSE's board failed to agree to a new bid Saturday midnight, The Wall Street Journal reports. Nasdaq set Saturday midnight as the deadline for both parties to come up with a negotiated price on the deal. LSE has resisted Nasdaq's offer indicating it could do some kind of a deal if the price is right, WSJ said in a previous report. "We have made our position quite clear that it wouldn't be in our shareholders' interests. . . ," an LSE spokesman told WSJ. Nasdaq, WSJ says, can only increase its offer for the LSE if, pursuant to British takeover laws, the LSE's board recommends a higher price or if a rival bidder appears. However, analysts see a rival bidder's sudden appearance as unlikely. Nasdaq owns a 29% stake in the London exchange. The Nasdaq Stock Market Inc. -- http://www.nasdaq.com/-- is the largest electronic equity securities market in the United States with around 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, 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 its 'BB+' bank loan rating to US$750 million senior secured Term Loan B, US$2 billion senior secured Term Loan C, and US$75 million revolver issued by Nasdaq, as well as the US$500 million senior secured Term Loan C 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 US$1.75 billion senior unsecured bridge loan issued by Nasdaq and NAL. Moody's Investors Service assigned in April 2006 ratings to three bank facilities of The Nasdaq Stock Market Inc.: a US$750 million Senior Secured Term Loan B, a US$1.1 billion Secured Term Loan C, and a US$75 million Senior Secured Revolving Credit Facility. Moody's said each facility is rated Ba3 with a negative outlook. NTL INC: Simon Duffy Resigns as Executive Vice Chairman ------------------------------------------------------- NTL Inc. disclosed of Simon Duffy's resignation as executive vice-chairman and as a member of the company's board of directors on Jan. 15. The board of ntl has 10 members following his resignation. "On behalf of ntl, I want to thank Simon for his service and dedication to our company. Since joint ntl in April 2003, Simon has made an enormous contribution as our CEO and board member. He saw ntl through our successful refinancing, our subsequent merger with Telewest and was instrumental in driving the acquisition of Virgin Mobile. He has helped create a company which is well positioned to take advantage of the huge opportunities the digital age presents," ntl Chairman Jim Mooney stated. About NTL Inc. Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) -- http://www.ntl.com/-- is a Delaware corporation and is publicly-traded is the US on the Nasdaq Global Select Market under the symbol "NTLI." The Company provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. * * * NTL Inc. carries these ratings: * Moody's Investors Service: -- Long-Term Corporate Family Rating: Ba3 * Standard & Poor's: -- Long-Term Foreign Issuer Credit Rating: B+ -- Long-Term Local Issuer Credit Rating: B+ -- Outlook Positive * Fitch: -- Long-Term Foreign Issuer Default Rating: B+ -- Short-Term Issuer Default Rating: B -- Short-Term Rating: B -- Outlook Stable PRESTIGE & POWER: Names Peter Sargent Liquidator ------------------------------------------------ Peter Sargent of Begbies Traynor was appointed liquidator of Prestige & Power Ltd. on Jan. 19 for the creditors' voluntary winding-up proceeding. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Prestige & Power Ltd. can be reached at: Suite 21 Royds Enterprise Park Future Fields Bradford West Yorkshire BD6 3EW England Tel: 01274 355 886 Fax: 01274 355 772 PROOF FOUR: Calls In Liquidator from AlexanderLawsonJacobs ----------------------------------------------------------- Ninos Koumettou of AlexanderLawsonJacobs was nominated liquidator of Proof Four Print Ltd. (formerly Proof Fourcolour Ltd. and Keyboard Consulting Ltd.) on Jan. 18 for the creditors' voluntary winding-up procedure. The company can be reached at: Proof Four Print Ltd. 37-42 Compton Street Islington London EC1 V0AP England Tel: 020 7251 4047 Fax: 020 7608 1494 RANK GROUP: Prudential Holds 7.62% Non-Material Equity Interest --------------------------------------------------------------- The Rank Group Plc disclosed that as at Jan. 20, Prudential Plc and certain of its subsidiary companies had a notifiable non- material interest in 41,332,391 ordinary 10 pence shares of the company representing 7.62% of the issued share capital. As of Jan. 24, the company's issued share capital is 542,358,756 ordinary 10 pence shares. Headquartered in London, United Kingdom, Rank Group PLC -- http://www.rank.com/-- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * As reported in the TCR-Europe on Dec. 11, 2006, Fitch Ratings downgraded Rank Group Plc's Issuer Default and Senior Unsecured Ratings to B+ from BB-. Fitch assigned a RR4 Recovery rating to Rank's outstanding bonds. The Short-term rating is affirmed at B and the Outlook remains Negative. On March 6, Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. RAVENTHORPE ESTATES: Claims Filing Period Ends February 23 ---------------------------------------------------------- Creditors of Raventhorpe Estates Ltd. have until Feb. 23 to prove their debts by sending written statements of the amounts they claim to be due to them from the company to: S. Hull Liquidator Geoffrey Martin & Co. St. James's House 28 Park Place Leeds LS1 2SP England The company can be reached at: Raventhorpe Estates Ltd Common Lane Welton Brough HU15 1UT England Tel: 01482 667 376 Fax: 01482 667 376 RAW ROAR: Creditors' Meeting Slated for February 20 --------------------------------------------------- Creditors of Raw Roar Ltd. will meet at 10:30 a.m. on Feb. 20 at: Mazars LLP Cartwright House Tottle Road Nottingham NG2 1RT England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 19 at the said address. A list of names and addresses of the company's creditors will be available for inspection free of on Feb. 16. Mazars -- http://www.mazars.com/-- provides audit, accounting, tax and advisory services. READER'S DIGEST: Earns US$62 Million in Second Quarter 2006 ----------------------------------------------------------- The Reader's Digest Association Inc. reported US$62 million of net income on US$802 million of revenues for the second quarter ended Dec. 31, 2006, compared with a US$122 million net loss on US$765 million of revenues for the same period ended Dec. 31, 2005, reflecting stronger operating results at RD North America and RD International. For fiscal 2007, reported results for the quarter included a loss on the sale of American Woodworker of US$6 million, and costs related to the pending merger with an entity formed by an investor group led by Ripplewood Holdings L.L.C. totaling US$5 million, which included higher stock-based compensation expenses as a result of increases in the company's stock price and non- operating transaction costs. Excluding these items, adjusted operating profits were US$122 million. For Fiscal 2006, reported results included a non-cash charge of US$188 million in connection with the write-down of goodwill associated with Books Are Fun and a gain on an asset sale of US$1 million. Excluding these items, fiscal 2006 adjusted operating profits were US$111 million. . Free Cash Flow was US$133 million in the quarter, favorable to last year's free cash flow by US$13 million. The improvement is attributable to improved operating results, proactive working capital management across the divisions, and the final installment of US$10 million from the sale of the Pleasantville headquarters facility. "The improved operating results for this quarter were in line with our expectations," said Eric W. Schrier, President and Chief Executive Officer. "We had strong performances from our North America and International divisions, and we saw signs of improvement at Consumer Business Services, especially Books Are Fun. Free cash flow increased, as we had projected, building on our cash flow improvement in the first quarter. In particular, I am very encouraged by the performance of our new initiatives, which are increasingly contributing to the company's growth." Reader's Digest North America (RDNA) In the second quarter, revenues for RDNA were US$275 million, up 11 percent over last year, and operating profits were US$37 million, up 31 percent. Revenue and profit gains were driven by the favorable impact of investments in new businesses including Every Day with Rachael Ray, Taste of Home Entertaining, and the acquisition of http://Allrecipes.com/. Further driving results were recent cookbook launches including The Taste of Home Cookbook. Increased sales of U.S. Books and Home Entertainment products also contributed to higher RDNA revenues. These gains were partly offset by lower advertising sales at Reader's Digest magazine and reduced revenues from American Woodworker magazine, which was sold in December 2006. Reader's Digest International (RDI) Revenues for RDI were US$330 million, versus US$301 million in the 2006 quarter. Foreign currency fluctuations increased revenues in fiscal 2007 by US$23 million. Higher revenues reflected strong continuous and attached mail campaigns in Australia, and strong product performance in Germany, including new products. Revenues improved in many of the newer markets, including Ukraine, Bulgaria and Romania. These results were partly offset by lower revenues for Books and Home Entertainment products in the United Kingdom, Poland, Portugal and Hungary as a result of lower response rates from outside list customers, and postal disruptions in Poland and Portugal. Operating profits were US$47 million, versus US$39 million in the prior-year quarter, an increase of 22 percent, or 13 percent currency-neutral. Foreign currency fluctuations increased operating profits by US$3 million. The revenue improvement, as well as a shift in timing of certain promotional campaigns, contributed to the profit increase. Consumer Business Services (CBS) In the second quarter, CBS reported revenues of US$211 million, down 8 percent from last year, and operating profits of US$49 million, down 9 percent. At BAF, revenue declines were driven by fewer corporate events, reflecting higher vacancies of corporate sales representatives in certain markets due to the departure of those sales reps in fiscal 2006, as well as the absence of revenue from exited lines of business. BAF has made significant progress in replacing sales reps, as well as gaining traction with initiatives designed to lower the cost base, upgrade the management team, improve the effectiveness of the sales force and strengthen cash flow. At QSP, revenues and profits declined principally because of lower magazine and gift sales. Corporate unallocated expenses were US$13 million, versus US$10 million in the year-ago quarter. The increase in these costs was driven by additional stock-based compensation expense attributed to a 29 percent increase in the price of RDA common stock during the second quarter of Fiscal 2007. In addition, the variance was driven by lower expense in Fiscal 2006 because of the reversal of a litigation-related reserve that was no longer necessary. Merger Agreement The company has entered into a merger agreement under which an investor group led by Ripplewood Holdings L.L.C. will acquire all of the outstanding common shares of RDA for US$17.00 per share. The transaction is expected to close by the end of February 2007, and is subject to the funding of the investor group's committed financing and the approval of the holders of a majority of the outstanding shares of RDA common stock, as well as other customary closing conditions. A shareholders meeting to consider adoption of the merger agreement is scheduled for Feb. 2, 2007. About Reader's Digest Headquartered in Pleasantville, New York, The Reader's Digest Association Inc. (NYSE: RDA) -- http://www.rda.com/-- is a global publisher and direct marketer of products that inform, entertain and inspire people of all ages and cultures around the world, including Poland, Portugal, Hungary and the United Kingdom. As reported in the Troubled Company Reporter on Nov. 20, 2006, Standard & Poor's Ratings Services reported that the 'BB' ratings on Reader's Digest Association Inc. remain on CreditWatch with negative implications, where they were placed on Aug. 15, 2006. REFCO INC: Files December 2006 Monthly Operating Report ------------------------------------------------------- Refco Inc. and its debtor-affiliates delivered to the U.S. Bankruptcy Court for the Southern District of New York a statement of their cash receipts and disbursements for the period from Dec. 1 to 31, 2006. Peter F. James, controller of Refco, reports that the company held a US$1,957,687,000 cash balance at the start of the reporting period. Refco received US$520,999,000 and disbursed US$1,809,093,000 in cash. Refco's ending cash balance totals US$669,594,000. As paying agent for certain non-debtors and Refco, LLC, the Debtors disbursed around US$2,200,000. Mr. James discloses that Refco paid US$504,000 in gross wages, of which US$187,000 was paid on behalf of and reimbursed by the Non-Debtors and Refco LLC. Refco also withheld US$154,000 in employee payroll taxes, of which US$10,000 was remitted to a third party vendor. Mr. James states that Refco has received tax notices from the IRS and other state taxing authorities in the aggregate amount of US$137,000. The notices are currently under investigation by RJM, LLC, Refco's duly appointed Chapter 11 Plan Administrator. Refco paid US$40,327,000 for professional fees for December, and US$145,338,000 since the Petition Date. Mr. James says all insurance policies are fully paid for the current period, including amounts owed for workers' compensation and disability insurance. Refco prepared its Monthly Report in lieu of comprehensive financial statements. A full-text copy of Refco's December 2006 Monthly Statement is available at no charge at http://ResearchArchives.com/t/s?18fe Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). ROLFE RESIDENTIAL: Ian Franses Leads Liquidation Procedure ---------------------------------------------------------- Ian Franses of Ian Franses Associates was appointed liquidator of Rolfe Residential (Hayes) Ltd. (t/a Peter-Rolfe) on Jan. 11 for the creditors' voluntary winding-up procedure. The company can be reached at: Rolfe Residential (Hayes) Ltd. 860 Uxbridge Road Hayes Middlesex UB4 0RP England Tel: 020 8573 7320 Fax: 020 8561 2296 ROOMS WITH A VIEW: Taps Liquidators from Begbies Traynor -------------------------------------------------------- Rob Sadler and Michael Saville of Begbies Traynor were appointed joint liquidators of Rooms With a View Ltd. on Jan. 15 for the creditors' voluntary winding-up proceeding. The Joint Liquidators can be reached at: Begbies Traynor 9th Floor Bond Court Leeds LS1 2JZ England SIMPLITE CITY: Names Tim Alexander Clunie Liquidator ---------------------------------------------------- Tim Alexander Clunie of S G Banister & Co. was appointed liquidator of Simplite City Construction Ltd. on Jan. 12 for the creditors' voluntary winding-up proceeding. The company can be reached at: Simplite City Construction Ltd. 2 Oxford Road Brackley Northamptonshire NN13 7DY England Tel: 01280 704 100 Fax: 01280 704 525 SOLUTIA INC: Balks at Panel's Intervention on Calpine Talks ----------------------------------------------------------- Calpine Central L.P., and Decatur Energy Center LLC, along with Solutia Inc., oppose the Official Committee of Unsecured Creditors' request to intervene in the arbitration between Calpine and Decatur, on one hand, and Solutia, on the other. On behalf of Solutia, M. Natasha Labovitz, Esq., at Gibson, Dunn & Crutcher LLP, in New York, notes that a private arbitration is overseen by an independent panel of arbiters, and run in accordance with Conflict Prevention & Resolution rules and procedures. During the arbitration proceeding, Solutia has freely and openly communicated with counsel for the Creditors Committee on an informal basis concerning Solutia's objections to the contested claims of Calpine and Decatur, and significant developments in the arbitration proceeding. Given the Creditors Committee's knowledge of and informal involvement in the arbitration proceeding from its inception, the Motion to Intervene is not timely, Ms. Labovitz asserts. Although the Creditors Committee has represented in its Motion that it "does not seek delay," the intervention causes substantial risk of delay either by the Committee or by other parties-in-interest who may seek to follow the Committee's example and intervene in the arbitration, Ms. Labovitz states. The Creditors Committee has failed to demonstrate that its interests are not being adequately protected, Ms. Labovitz points out. Solutia is aggressively prosecuting its objection to the Contested Claims, and the Creditors Committee has indicated no disagreement as to Solutia's handling of the case, she maintains. The Creditors Committee is seeking an order amending the contract between Solutia and Calpine. Hence, according to Ms. Labovitz, the arbitration panel, whose power is limited by the contract, may not recognize the Creditors Committee or understand either the Creditors Committee's role in the bankruptcy case or the role it proposes to play in the arbitration. Intervention may result in litigation and confusion before the arbitration panel regarding issues as to whether Solutia or the Creditors Committee is the proper party prosecuting the objection of the Contested Claims, she contends. Eliot Lauer, Esq., at Curtis, Mallet-Prevost, Colt & Mosle LLP, in New York, attorney for Calpine, argues that non-signatories to arbitration agreements have no right to participate in the arbitration. Neither the Rule 24(a)(2) of the Federal Rules of Civil Procedures nor Section 1109(b) of the Bankruptcy Code alters the general rule, Mr. Lauer asserts. He notes, the non-signatory may ask the parties' permission to participate, but absent all parties consenting, may not intervene before the arbitral panel. Instead, the non-signatory must wait until the arbitration enters the judicial system, Mr. Lauer says. Moreover, the Creditors Committee has not satisfied the elements for intervention under Civil Rule 24(a)(2), Mr. Lauer notes. The U.S. Bankruptcy Court for the Southern District of New York should not permit intervention pursuant to Section 105(a), he asserts. Solutia and Calpine have already agreed upon a detailed scheduling order in the arbitration proceeding. Solutia and Calpine have spent three and a half months engaging in discovery and are now in the midst of depositions of witnesses to be followed by expert discovery. Permitting the Creditors Committee to intervene at this point in the arbitration as a "formal party to the arbitration" will be highly prejudicial to Calpine and Decatur, Mr. Lauer adds. Moreover, the Creditors Committee's intervention in the private arbitration will lead to increased expenses and inevitable delays, Mr. Lauer insists. Furthermore, the Creditors Committee offers no explanation of what benefit its intervention will provide to Solutia's estate. Solutia is also concerned that the Court does not have the authority to authorize the intervention, and that any order authorizing the intervention will cause further litigation in the arbitration. Calpine and Solutia ask the Court to deny the Creditors Committee's request. As reported in the TCR-Europe on Jan. 19, before it filed for bankruptcy, Solutia entered into a series of 20-year term contracts scheduled to commence in 2002, with Calpine Central, Calpine Power Services Company, and Decatur pursuant to which Calpine built a natural gas co-generation facility on land leased from Solutia at Solutia's plant in Decatur, Alabama. Calpine and Solutia, however, agreed to delay commencement of performance until June 1, 2004, because of the unanticipated increase in natural gas prices. In 2004, Solutia determined that the then-current and forecasted price of natural gas rendered it more cost-effective for Solutia to return to its historical practice of purchasing energy of the Decatur plant from the Tennessee Valley Authority and generating its own steam, rather than buying energy and steam from Calpine. On May 13, 2004, Solutia filed a motion seeking to reject certain Contracts. The Court entered a stipulated order on May 24, 2004, settling the motion and approving the rejection of certain Contracts. Calpine was permitted to submit proofs of claim for damages allegedly resulting from the rejection of the Contracts. Solutia objected to two of the three claims filed by Calpine for damages relating to the Rejected Contracts. Both claims aggregate US$382,717,333. The Court entered an order dated November 2005, compelling arbitration of the contested claims of Calpine Central and Decatur. The parties agreed to stay the Arbitration to conduct settlement negotiations; however, no resolution materialized between the parties and, consequently, the Arbitration will proceed. The Creditors Committee then sought and obtained approval, in August 2006, to retain conflicts counsel to represent the interests of unsecured creditors in the Arbitration. The Creditors Committee and the Debtors have consulted extensively about the merits of the Arbitration, and the Debtors have granted the Creditors Committee access to documents produced in the Arbitration. John J. Jerome, Esq., at Saul Ewing LLP, in Philadelphia, Pennsylvania, conflicts counsel to the Creditors Committee, told the Court that the outcome of the Arbitration will affect the ultimate recoveries available to unsecured creditors, therefore, it is essential for the Creditors Committee to become a formal party to the Arbitration in order to assert and protect the interests of the unsecured creditors. The Creditors Committee's request to intervene is also timely as the Arbitration remains in the early stages -- fact discovery is ongoing and the deadline to disclose experts and exchange expert reports is in late March 2007. The Arbitration hearing is not until Aug. 27, Mr. Jerome noted. The Creditors Committee does not intend to raise new issues, assert new or different objections to the Calpine Claims, or take any other actions that would adversely affect the scheduling order entered by the Arbitration Panel in September 2006. Moreover, no party will be prejudiced by the intervention, Mr. Jerome said. He clarified that the Committee merely seeks to ensure that its constituents' interests are represented. 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. 77; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) STANTON JOINERY: Creditors' Meeting Slated for February 16 ---------------------------------------------------------- Creditors of Stanton Joinery Ltd. will meet at noon on Feb. 16 at: 66 Wigmore Street London W1U 2HQ England Creditors who want to vote at the meeting must submit particulars of their claims or of any security, together with their proxy forms, at noon on Feb. 15 at: 81 Station Road Marlow Buckinghamshire SL7 1NS England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 14 at: 81 Station Road Marlow Buckinghamshire SL7 1NS England * Europe Credit Cycle to Worsen Till Mid-2007, Moody's Reports -------------------------------------------------------------- The deterioration in credit quality in Western Europe in 2006 was the worst since the after-shocks of the dotcom crash in 2002. However, the scale of the weakening is not nearly as pronounced as it was at that time, says Moody's Investors Service in a new report entitled "European Credit Trends: 2006 Review and 2007 Outlook". In 2006, Moody's adjusted the ratings of 190 issuers, made up of 73 upgrades and 117 downgrades. As a result, the balance of upgrades to downgrades stood at -44 compared to +5 in 2005 and, at its worst, -159 in 2002. In the fourth quarter, the softening in quality reversed as Moody's announced 15 upgrades and 20 downgrades. As a result, the upgrade to downgrade ratio recovered from the 14-quarter low scored in the September quarter. The creditworthiness of non-financial sector issuers softened at its most rapid pace in three years in 2006, with the 12-month rolling share of upgrades for the year as a whole falling to 35%. This is its lowest level since 2003, but is nonetheless more than double that year's 16.4% share. In the fourth quarter 2006, however, the rolling share of upgrades recovered slightly -- rising to 28.6%. "With interest rates still on the rise and the corporate appetite for borrowing remaining healthy, it would be premature to signal a turnaround," says Paul Guest, Moody's Chief European Economist. "Given building malaise in the speculative-grade segment and the available forward-looking rating statistics, the shift in the fourth quarter is more stabilization than rebound." "We are in an environment of rising interest rates and a very mild increase in speculative-grade default rates, yet high-yield spreads continue to tighten", notes Christine Li, co-author of the report. Theoretically, as the cost of borrowing increases, interest-rate-sensitive high-yield debt becomes less attractive to investors, leading to lower demand. In turn, prices would be pushed down and yields would rise steeply compared to investment-grade debt. The spread compression in the speculative-grade sector has so far been puzzling. "There are reasons to be cautious. Monetary tightening and higher borrowing costs will impact the liquidity of the increasingly indebted corporate sector, as merger and acquisition activity continues apace. As interest rates rise, deteriorating credit quality will lead to the rebalancing of investors' portfolios and adjustment in the risk/return trade- off away from riskier to higher-quality assets. The consequent sell-off will lead to a widening of speculative-grade spreads," Li explains. Based on the composition of the Western European Watchlist, Moody's expects only a slight deterioration in credit quality during first quarter 2007, bar another unexpected pick-up in event risk. Between September and December 2006, the number of issuers on review for possible upgrade rose by four to 16, while the number of issuers on review for possible downgrade proved relatively constant, rising by one to 40. "These factors, combined with the renewed deterioration in the underlying balance of review statistics, suggest the trough of the credit cycle is more likely to be on the later side of mid-year. At the moment, momentum and review indicators are pointing to a nadir very early in the third quarter, concurrent with the peak of monetary tightening in much of Western Europe," concludes Guest. ********* 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, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *