/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070323.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 Friday, March 23, 2007, Vol. 8, No. 59 Headlines A U S T R I A BACKEREI GUGGISBERG: Claims Registration Period Ends April 10 HYDRA LLC: Vienna Court Orders Business Shutdown KAINZ & KIRCHMAYER: Vienna Court Orders Business Shutdown MODA ALLA: Vienna Court Orders Business Shutdown SILLABER HOTELWASCHEREI: Salzburg Court Orders Business Closure B E L G I U M GOODYEAR TIRE: Agrees on Local Labor Issues with Union C Z E C H R E P U B L I C LG.PHILIPS: Czech Unit Suspends Production as Demand Falls D E N M A R K BLOCKBUSTER INC: CEO John Antioco to Leave Post by Year-End NORTEL NETWORKS: Moody's Rates Proposed US$1-Bln Sr. Notes at B3 NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bln Debt F I N L A N D M-REAL CORP: S&P Cuts Ratings to B on Weak Financial Performance F R A N C E ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit GDX AUTOMOTIVE: Court Puts French Unit In Legal Rectification TECUMSEH PRODUCTS: Brazilian Unit Files Bankruptcy Petition G E R M A N Y ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units A-Z OPITZ: Creditors' Meeting Slated for May 2 B & S SICHERHEITSSYSTEME: Claims Registration Ends April 19 BAUUNTERNEHMEN HAIBOECK: Claims Registration Ends May 9 BENQ CORP: Creditors File EUR1.2 Bln Claims Against Mobile Unit BENQ CORP: Posts NT$7.89 Billion Loss in Fourth Quarter 2006 DEINBOECK IMMOBILIEN: Financial Woes Prompt Insolvency Filing FIREPHONE GMBH: Claims Registration Ends April 8 GEMINI VERTRIEBSLOGISTIK: Claims Registration Ends May 7 HERZOG GMBH: Claims Registration Ends May 2 INFORMATION MANAGEMENT: Claims Registration Ends April 27 KHS BAUCENTER: Creditors Must Register Claims by May 29 LAUER BAUBETREUUNG: Creditors Must Register Claims by April 21 MICHAEL BEHR: Creditors Must Register Claims by April 13 PERRA GASTRONOMIE: Creditors Must Register Claims by April 16 PH PARTY: Creditors' Meeting Slated for May 11 PO-GA POOL-GARTEN-WELLNESS: Claims Registration Ends April 17 POHLSCHROEDER GELDSCHRANK: Claims Registration Ends May 10 RS-ELEKTRONIK: Claims Registration Period Ends April 20 RUDOLF WORM: Claims Registration Period Ends May 25 SANDWICH CLUB: Claims Registration Ends April 30 SUPULANE GMBH: Claims Registration Period Ends April 19 TANKRAPS GMBH: Claims Registration Period Ends May 11 TRIPOS INC: Dec. 31 Balance Sheet Upside-Down by US$5.4 Million TRIPOS INC: Shareholders Vote to Sell Unit & Liquidate Company TRIPOS INC: Completes US$26.2-Mln Sale of Discovery Informatics W. GOEBEL: Merrill Lynch & Strategic Value Mull Acquisition WCM BETEILIGUNGS: Salzgitter AG Eyes Klockner-Werke Buyout WEIGL & JANUSCHKOWETZ: Claims Registration Period Ends May 11 WOHNPARK NORD: Claims Registration Period Ends May 9 WORM TEXTILHANDELSGESELLSCHAFT: Claims Registration Ends May 25 I R E L A N D AFFILIATED COMPUTER: Confirms Receipt of Purchase Proposal AFFILIATED COMPUTER: Buyout Offer Cues Fitch's Negative Watch AFFILIATED COMPUTER: Buyout Offer Cues S&P's Negative Watch ALPSTAR CLO: Moody's Rates EUR24-Million Class E Notes at (P)Ba3 EUROMAX VI: Fitch Assigns BB Ratings to EUR3-Mln Class E Notes KINTYRE CLO: Moody's Rates EUR11.55-Mln Class E Notes at Ba3 I T A L Y ALITALIA SPA: Notes Risk on Transfer to Fiumicino Airport PARMALAT SPA: Investors to Get US$50-Mln Partial Settlement PARMALAT SPA: New Jersey Court Denies Citigroup Motion to Appeal PARMALAT SPA: Earns EUR192.5 Mln for Year Ended Dec. 31, 2006 REVLON CONSUMER: Dec. 31 Balance Sheet Upside-Down by US$1.2 Bln K A Z A K H S T A N AKTUBSTROYCENTRE LLP: Creditors Must File Claims by May 1 BIKEEV LLP: Creditors' Claims Due May 1 BLAGPUSTROYSTVO LLP: Proof of Claim Deadline Slated for May 1 CLASS-1 LLP: Claims Registration Ends May 1 LUX LLP: Claims Filing Period Ends May 1 MICHURINSKOYE SELENERGO: Creditors Must File Claims by May 2 STOLICHNOYE SNABJENIYE: Creditors' Claims Due May 4 STROYOPTSERVICE-LTD LLP: Claims Registration Ends May 1 ZARYA LLP: Claims Filing Period Ends May 1 K Y R G Y Z S T A N RASAK CREDO: Claims Filing Period Ends May 2 L I T H U A N I A BITE FINANCE: Fitch Assigns Junk Ratings to EUR110-Mln Loan L U X E M B O U R G EVRAZ GROUP: Launches Offer to Buy Out NTMK Minority Stake N E T H E R L A N D S X5 RETAIL: Acquires 144 Delivery Trucks from Scania AB R O M A N I A CFR MARFA: Moody's Assigns Ba2 Corporate Family Rating R U S S I A AVTOGAS OJSC: Creditors Must File Claims by May 3 BALT OIL: Kareliya Court Names Y. Ponomarev to Manage Assets BUZULUKSKIY: Creditors Must File Claims by April 3 DOBRINKA OJSC: Orenburg Bankruptcy Hearing Slated for May 23 ELRUS CJSC: Court Names P. Tarasov as Insolvency Manager EQUIPMENT AND INVESTMENT: Creditors Must File Claims by April 3 EUROCHEM MINERAL: Scraps Initial Public Offering Plans for 2007 EVRAZ GROUP: Launches Offer to Buy Out NTMK Minority Stake KAMNESTROY CJSC: Creditors Must File Claims by April 3 LOYUN CJSC: Creditors Must File Claims by April 3 LUKOIL OAO: Inks Four-Year Cooperation Agreement with GAZ Group MOBILE TELESYSTEMS: Earns US$1.25 Billion for Full Year 2006 NADEZHDA OJSC: Creditors Must File Claims by April 3 PECHOR-MOR-OIL: Creditors Must File Claims by April 3 PULSE LLC: Creditors Must File Claims by April 3 ROSNEFT OIL: Board Approves US$22-Billion Loan for Yukos Bid ROSNEFT: Fitch's BB+ Rating Incorporates Planned US22-Bln Loan SARAEVSKIY BUTTER: Court Names M. Kuvshinova to Manage Assets SEV-ZAP-MILK-AGRO: Creditors Must File Claims by April 3 SOUTHERN TELECOMMUNICATIONS: Court Postpones Tax Claim Hearing TORG-FINANCE-STROY++: Creditors Must File Claims by April 3 VIMPEL-COMMUNICATIONS: Alfa Group Raises Stake to 42.4% YUKOS OIL: Court Voids PwC Audit Contract; Firm Set to Appeal S P A I N DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit S W I T Z E R L A N D AGTEN JSC: Creditors' Liquidation Claims Due April 10 CS CONSULTING: Claims Registration Period Ends April 3 EISBALL CONSULTING: Claims Registration Period Ends April 3 HOTEL BAREN: Waldenburg Court Starts Bankruptcy Proceedings INTER ATLANTIK: Creditors' Liquidation Claims Due March 31 NETWAY SOLUTIONS: Claims Registration Period Ends April 2 PETER RYTZ: Creditors' Liquidation Claims Due April 10 TRYDEX JSC: Creditors' Liquidation Claims Due April 2 TSUFA JSC: Creditors' Liquidation Claims Due April 5 XMM EXECUTIVE: Creditors' Liquidation Claims Due April 10 U K R A I N E ADAMPOL BREAD: Bar Date for Submission of Claims Set March 25 ADGEZIV LLC: Creditors Must File Proofs of Claim by March 25 AFT LTD: Bar Date for Submission of Claims Set March 24 AMBASSADOR INTERNATIONAL: Creditors Must File Claims by March 25 AZOVSERVICE LLC: Creditors Must File Proofs of Claim by March 25 BALANOVKA AGRICULTURAL: Creditors Must File Claims by March 24 CREDIT DNEPR: Moody's Puts B3 Rating to Senior Unsecured Debt DIKOM-AUDIT LLC: Creditors Must File Proofs of Claim by March 25 DIVO LLC: Creditors Must File Proofs of Claim by March 25 DNIPROMLYN OJSC: Court Appoints Y. Arkina as Bankruptcy Trustee MABUD LTD: Creditors Must File Proofs of Claim by March 25 OLENA MARKANTONI: Creditors Must File Claims by March 25 POKROVA LLC: Creditors Must File Proofs of Claim by March 25 PROMZONA LLC: Creditors Must File Proofs of Claim by March 25 REGIONAL AGRICULTURAL: Creditors Must File Claims by March 25 TECHNOLOGY LLC: Creditors Must File Proofs of Claim by March 25 TIREX LLC: Creditors Must File Proofs of Claim by March 25 TRUCK LLC: Creditors Must File Proofs of Claim by March 25 U N I T E D K I N G D O M ADVANCED MARKETING: Baker & Taylor Completes Asset Purchase ADVANCED MARKETING: C. Smith Succeeds G. Rautenstrauch as CEO ALLERTON DEVELOPMENTS: Names M. S. E. Solomons Liquidator ANGLO NATIONWIDE: Appoints Chris Williams to Liquidate Assets ANOUSHKA G: Creditors' Meeting Slated for March 28 BOX OFFICE: Brings In M. S. E. Solomons to Liquidate Assets BRITISH AIRWAYS: Calls on UK to Sanction US Under Aviation Pact BROTHER 2 BROTHER: Creditors' Meeting Slated for March 29 BUDGET CLEANING: Taps Robert Day to Liquidate Assets CANNOCK GATES: Calls In Administrators from Ernst & Young LLP CHERRYPRINT LTD: Brings In Liquidators from Baker Tilly CIRCLE STUDIO: Creditors Confirm Voluntary Liquidation CLAREMONT KNIGHT: M. Chamberlain Leads Liquidation Procedure COLLINS & AIKMAN: Court Okays Alan Miller as Special Counsel DANA CORP: Sells Bristol Plant Assets to Dana Canada for US$1.9M DANA CORP: Discloses Non-Union Retirees Pact With Retiree Panel DANA CORP: Reaches Pact With IAMAW to Resolve Union's Claims ECO-BAT TECH: Moody's Lifts Rating to Ba3 on Strong Performance ECO-BAT TECHNOLOGIES: S&P Affirms B+ Ratings on Loan Refinancing HOUSE OF AMBER: Creditors' Meeting Slated for April 3 INMARSAT PLC: Moody's Changes Rating Outlook to Negative J P MEDIA: Hires Liquidator from Griffin & King JTM DESIGN: Liquidator Invites Creditors to Submit Claims KYE LTD: Joint Liquidators Take Over Operations LEEDS WHOLESALE: Creditors Confirm Liquidator's Appointment MANSARD MORTGAGES: Fitch Rates GBP6.875-Mln Class B2 Notes at BB PRIORY FINANCE: Taps Liquidators from Taylor Rowlands RIDGEWOOD TEXTILES: Creditors' Meeting Slated for April 4 SCHEFENACKER PLC: Enters Second Phase of Restructuring SCHEFENACKER PLC: Succeeds Schefenacker AG's Assets & Debts SEC REALISATIONS: Appoints Liquidators from Grant Thornton SOUTHERN PACIFIC: Fitch Affirms BB Ratings on Class E Notes TRIPOS INC: Dec. 31 Balance Sheet Upside-Down by US$5.4 Million TRIPOS INC: Shareholders Vote to Sell Unit & Liquidate Company TRIPOS INC: Completes US$26.2-Mln Sale of Discovery Informatics VIRGIN MEDIA: S&P Affirms BB- Ratings on Planned Loan Payments * BOOK REVIEW: American Express: The People Who Built the Great Financial Empire ********* ============= A U S T R I A ============= BACKEREI GUGGISBERG: Claims Registration Period Ends April 10 ------------------------------------------------------------- Creditors owed money by KG Backerei Guggisberg (FN 255602k) have until April 10 to file written proofs of claim to court- appointed estate administrator Michael Kropiunig at: Dr. Michael Kropiunig Max-Tendler-Strasse 28 8700 Leoben Austria Tel: 03842-45019 Fax: 03842-45019-30 E-mail: office@ra-kropiunig.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on April 25 for the examination of claims. The meeting of creditors will be held at: The Land Court of Leoben Hall IV First Floor Leoben Austria Headquartered in Trofaiach, Austria, the Debtor declared bankruptcy on March 2 (Bankr. Case No. 17 S 26/07b). HYDRA LLC: Vienna Court Orders Business Shutdown ------------------------------------------------ The Trade Court of Vienna entered March 2 an order shutting down the business of LLC HYDRA (FN 198258g). Court-appointed estate administrator Rainer W. Boehm recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Rainer W. Boehm c/o Dr. Georg Auteried Altgasse 21 1130 Vienna Austria Tel: 876 47 980 Fax: 876 47 98 21 E-mail: office@auteried.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 22 (Bankr. Case No. 4 S 21/07a). Georg Auteried represents Dr. Boehm in the bankruptcy proceedings. KAINZ & KIRCHMAYER: Vienna Court Orders Business Shutdown --------------------------------------------------------- The Trade Court of Vienna entered March 2 an order shutting down the business of LLC Kainz & Kirchmayer (FN 58598z). Court-appointed estate administrator Hannelore Pitzal recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Hannelore Pitzal c/o Dr. Wolfgang Pitzal Paulanergasse 9 1040 Vienna Austria Tel: 587 31 11 Fax: 587 87 50 50 E-mail: office@heller-pitzal.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 8 (Bankr. Case No. 3 S 20/07x). Wolfgang Pitzal represents Dr. Pitzal in the bankruptcy proceedings. MODA ALLA: Vienna Court Orders Business Shutdown ------------------------------------------------ The Trade Court of Vienna entered March 2 an order shutting down the business of LLC Moda alla Contini (FN 212257v). Court-appointed estate administrator Ute Toifl recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Ute Toifl Tuchlauben 12/20 1010 Vienna Austria Tel: 0222/535 46 11 Fax: 0222/535 46 11-11 E-mail: office@thr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 26 (Bankr. Case No. 28 S 21/07b). SILLABER HOTELWASCHEREI: Salzburg Court Orders Business Closure --------------------------------------------------------------- The Land Court of Salzburg entered March 2 an order closing the business of LLC Sillaber Hotelwascherei (FN 204228k). Court-appointed estate administrator Walter Aichinger recommended the business closure after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Walter Aichinger Ignaz-Rieder-Kai 11c 5020 Salzburg Austria Tel: 0662-622301 Fax: 0662-623000 E-mail: law@raits-ebner.at Headquartered in Leogang, Austria, the Debtor declared bankruptcy on Feb. 5 (Case No. 44 S 6/07t). ============= B E L G I U M ============= GOODYEAR TIRE: Agrees on Local Labor Issues with Union ------------------------------------------------------ Goodyear Tire & Rubber Co. has reached a tentative agreement on local issues with the United Steelworkers of America after five weeks of negotiations, Melissa Willett writes for The Fayetteville Observer. The report says the agreement, which mainly addressed scheduling, hiring and vacation time, provides, among others, that: a) all workers except maintenance -- craftsmen, electricians and machinists -- will be given multiple shift options; and b) maintenance workers will be split into two shifts -- one working eight hours and the other working 12 hours. Amended Pension Plans Early this month, the company made a series of changes to its U.S.-based retail and salaried employee pension and retiree benefit plans aimed at increasing its global competitiveness while significantly reducing its cost structure. The changes will be phased in over a two-year period, with most benefit plan changes effective in 2008 and the most significant pension plan changes in 2009. As a result, Goodyear expects after-tax savings of US$80 million to US$90 million in 2007, US$100 million to US$110 million in 2008, and US$80 million to US$90 million in 2009 and beyond. The actions are expected to reduce the company's pension obligation by approximately US$100 million and its obligation for other post retirement benefits by about US$525 million assuming interest rates used to value the obligations remain similar to those used at Dec. 31, 2006. Goodyear plans to record a one-time after-tax charge of approximately US$65 million related to these actions in the first quarter of 2007. Benefit plan changes effective Jan. 1, 2008, include: * Increasing the amounts that current and future salaried retirees contribute toward the cost of their medical benefits; * Redesigning retiree medical benefit plans to minimize cost impact on premiums; * Closing the company's Medicare supplement plan to new entrants; and * Discontinuing company-paid life insurance for salaried retirees. The pension changes include: * Freezing the current salaried defined benefit pension plans as of Dec. 31, 2008; * Replacing the defined benefit pension plans with enhanced 401(k) savings accounts with varying levels of company contributions for current associates beginning Jan. 1, 2009; and * Introducing company-matching contributions for the salaried 401(k) savings plan at 50 percent of the first 4 percent of annual pay beginning Jan. 1, 2009. Low-B Ratings Affirmed Last week, Fitch Ratings affirmed its ratings for The Goodyear Tire & Rubber Company, including the 'B' rating on the company's US$300 million third lien term loan, and 'CCC+' rating on its senior unsecured debt. The rating agency revised the rating outlook to stable from negative. Fitch noted that at Dec. 31, 2006, the company had approximately US$7.2 billion of debt outstanding, prior to a paydown of bank debt in January. The revision to a Stable Outlook, Fitch said, reflects its expectation for further improvement in the company's operating profile as it recovers from the labor strike and continues to implement its cost-savings plan. In addition, Fitch noted that the company faces significant cash requirements that could contribute to negative cash flow in 2007. The requirements, the rating agency said, include pension contributions, capital expenditures, an increase in working capital requirements as the company rebuilds inventory, and debt and interest payments. Fitch's other rating concerns include an improving but still high cost structure in North America, high raw material costs, weak demand in North America, and competitive pricing in certain other markets. On Jan. 12, 2007, Moody's Investors Service affirmed Goodyear Tire & Rubber Company's Corporate Family Rating of B1. Ratings on Goodyear's existing secured and unsecured obligations were also affirmed as was the company's Speculative Grade Liquidity rating of SGL-2. The outlook was reverted to stable from negative. On Jan. 8, 2007, Standard & Poor's Ratings Services affirmed its 'B-' ratings on the class A-1 and A-2 certificates from the US$46 million Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust. The ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 24, 2006. About The Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. The company's European operation is headquartered in Belgium. =========================== C Z E C H R E P U B L I C =========================== LG.PHILIPS: Czech Unit Suspends Production as Demand Falls ---------------------------------------------------------- Multidisplay s.r.o. (formerly LG.Philips Displays Czech Republic s.r.o.) halted TV tubes production at its Hranice plant after a temporary fall in demand, CTK reports citing plant spokeswoman Zuzana Fojtikova. Ms. Fojtikova told CTK that warehouses are full at the moment. "It is less expensive to stop the lines than to let them run, say, at 50 percent," Ms. Fojtikova said. According to CTK, part of the employees will be on holiday during the temporary shutdown while others will be paid 70% of the average monthly wage. The plant will resume operations on April 2 as demand is expected to rise again. In February, CTP Invest bought the entire business from the trustee of the bankrupt mother company LG.Philips Displays Holding B.V. seated in the Netherlands. As previously reported in the TCR-Europe, LG.Philips Displays Holding B.V. filed for insolvency protection along with its Dutch subsidiary, LG.Philips Displays Netherlands B.V., and its German subsidiary in Aachen due to worsening conditions in the CRT marketplace and unsustainable debt. Less than two months after the insolvency filings in Europe, the company's U.S. unit, LG.Philips Displays USA Inc., filed a chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware on March 15. About LG.Philips Displays Headquartered in Hong Kong, LG.Philips Displays -- http://www.lgphilips-displays.com/-- manufactures cathode ray tubes for use in televisions and computer monitors. The company produces one in every four television and computer monitor tubes sold. Making use of its global manufacturing infrastructure, it provides regional supplies to top TV and monitor brands worldwide. LG.Philips Displays continues to be committed to the CRT industry and will maintain a strong profile based on its competitive operations and innovative, high-quality products. The company's production facilities are in: China, Korea, Indonesia, Brazil, The Netherlands and United Kingdom. ============= D E N M A R K ============= BLOCKBUSTER INC: CEO John Antioco to Leave Post by Year-End ----------------------------------------------------------- Blockbuster Inc. disclosed Tuesday in a filing with the U.S. Securities and Exchange Commission that the Company and John Antioco, Blockbuster Chairman and CEO, have entered into an amended and restated employment agreement that sets forth terms under which Mr. Antioco will leave the company by the end of 2007. "I am pleased that we were able to reach this agreement," said John Antioco, Blockbuster Chairman and CEO. "This revised employment agreement allows for management continuity and ample opportunity for an orderly succession by the end of the year. In the meantime, the board of directors, our management team and I remain focused on continuing to improve the business, most notably through BLOCKBUSTER Total Access(TM)." "John and the company have reached terms that are clearly in the best interests of the stockholders," said Carl C. Icahn, a member of the Blockbuster Board of Directors. "I and the rest of the board remain committed to working with our dedicated management team to deliver on the company's financial goals for the year and to continue positioning Blockbuster for improved success now and into the future." Under the amended and restated employment agreement, Mr. Antioco will receive a 2006 bonus of US$3.0525 million, which reflects a compromise between the US$2.28 million bonus previously conditionally offered by the board and US$7.65 million, which is the amount Mr. Antioco was entitled to receive under his previous employment agreement and Blockbuster's 2006 Senior Bonus Plan if negative discretion was not invoked. Additionally, at the conclusion of his employment, Antioco will receive a lump sum payment of US$4.9875 million as compared to a lump sum payment of US$13.5 million that he would have been entitled to receive if he had been terminated without cause or had resigned for good reason on Dec. 31, 2007, under his previous employment agreement. Details of the amended and restated employment agreement are available for free at http://researcharchives.com/t/s?1bc7 In addition, at a meeting of the Blockbuster board of directors on March 19, 2007, the board voted to recommend that Blockbuster's stockholders approve at its annual meeting an amendment to Blockbuster's certificate of incorporation to eliminate the classification of the board of directors and to provide for the annual election of all directors. The board believes that the de-classification of the board is consistent with best corporate governance practices. 2006 Results As reported in the Troubled Company Reporter on Mar. 9, 2007, Blockbuster Inc. reported net income of US$54.7 million for the year ended Dec. 31, 2006, compared with a net loss of US$588.1 million for 2005. Revenues for 2006 decreased 3.5% to US$5.52 billion from US$5.72 billion for 2005 mostly due to the closure of stores resulting from accelerated actions to optimize the company's asset portfolio and a 2.1% decrease in worldwide same-store sales. At Dec. 31, 2006, the company's balance sheet showed US$3.137 billion in total assets, US$2.394 billion in total liabilities, and US$742.4 million in total stockholders' equity. About Blockbuster Blockbuster Inc. (NYSE: BBI) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 8,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. * * * As reported in the Troubled Company Reporter on Dec. 19, 2006, Standard & Poor's Ratings Services revised its outlook on video rental retailer Blockbuster Inc. to stable from negative. The ratings on the Dallas-based company, including the 'B-' corporate credit rating, were affirmed. NORTEL NETWORKS: Moody's Rates Proposed US$1-Bln Sr. Notes at B3 ---------------------------------------------------------------- Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed US$1 billion convertible senior unsecured notes offering. Proceeds of the offering will be used to refinance a portion of the US$1.8 billion in 4.25% convertible notes due in 2008 when they become payable at par. The outlook remains stable. Moody's notes the company's progress in several fronts in its recently released year end 2006 results including revenue increases in each of its business segments and reduction in material weaknesses from 5 to 1. EBITDA for the year decreased however, despite the revenue increases. Nortel's management team has made progress in it turnaround plan but it still has considerable challenges to return operating margins to double digit levels. The recent divestiture of the UMTS business and recently disclosed US$400 million cost cutting program should positively affect EBITDA going forward if the company is able to maintain its growth momentum. The proposed notes offering will address a significant 2008 maturity issue and allow the company to substantially maintain its strong cash position. Assigned: * Nortel Networks Corporation -- Proposed US$1.0 billion Convertible Senior Unsecured notes at B3, LGD4, 67% Affirmed: * Nortel Networks Corporation -- US$1.8 billion 4.25% Convertible Senior Unsecured notes at B3, LGD4, 67% * Nortel Networks Limited -- Corporate Family Rating at B3, LGD4, 67% -- US$2.0 billion Senior Unsecured notes at B3, LGD4, 67% -- US$200 million 6.875% senior unsecured notes at B3, LGD4, 67% -- Preferred Stock Caa3 * Nortel Networks Capital Corporation -- 7.875% Senior Unsecured notes at B3, LGD4, 67% Nortel Networks Corporation is a global telecommunications networking solutions provider headquartered in Toronto, Ontario, Canada. NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bln Debt ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' debt rating to Canada-based Nortel Networks Corp.'s proposed US$1 billion senior unsecured convertible notes, which will consist of two tranches of US$500 million, maturing in 2012 and 2014, respectively. Proceeds from the convertible notes will be used to partially refinance NNC's US$1.8 billion senior unsecured convertible notes due Sept. 1, 2008, and therefore the overall debt level is not expected to change. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on 100%-owned Canada-based subsidiary, Nortel Networks Ltd. At the same time, the ratings on the US$200 million notes of NNL and the US$150 million notes of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B- '. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are collectively referred to as Nortel. The outlook on NNL is stable. "The proposed US$1 billion senior unsecured convertible notes of the parent will be guaranteed by both NNL and NNI," said Standard & Poor's credit analyst Madhav Hari. "We note that the inclusion of the NNI guarantee in the proposed offering will effectively subordinate about USUS$1.15 billion of existing debt," Mr. Hari added. This debt includes the US$200 million unsecured notes of NNL due September 2023, the US$150 million unsecured notes of NNCC due June 2026, and the remaining US$800 million convertible notes of NNC due September 2008. Given that, on a pro forma basis, priority debt and liabilities will represent more than 30% of total adjusted assets, the ratings on the US$200 million notes of NNL and the US$150 million notes of NNCC were lowered as noted above, reflecting the relatively weaker recovery prospects of this structurally junior debt in the event of a reorganization. Nevertheless, the US$800 million remaining senior unsecured convertible notes of NNC will continue to be rated 'B-' despite the structural subordination; this is because Standard & Poor's believe investors can expect a higher likelihood of full recovery given the notes near-term maturity, particularly in the context of Nortel's meaningful cash balances of US$3.5 billion at Dec. 31, 2006, which are expected to be sustained. The ratings on NNL, which are based on the consolidation with parent NNC, reflect a highly competitive telecom equipment industry, notably in the context of continuing carrier consolidation; ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; a weak but stable spending environment for global telecom equipment and services; the company's high level of debt and weak credit protection measures; and profitability that continues to lag that of its peers. These factors are partially mitigated by the company's broad portfolio of wireline and wireless products and services; reasonable-scale, geographically diversified operations; strong customer relations; early indications of a trend toward improved profitability; and a healthy liquidity position. The stable outlook reflects our expectations of only modest improvement in Nortel's operating performance, including modest growth in revenues, EBITDA, and cash flow in the next two years. The stable outlook also assumes that Nortel will be able to maintain a healthy liquidity position supported by a minimum of US$1.5 billion in cash balances. The outlook could be revised to positive should Nortel deliver better-than-expected operating performance and improved free operating cash flows. Should Nortel's profitability weaken, and if its free operating cash flow remains negative in the medium term, the outlook could be revised to negative. ============= F I N L A N D ============= M-REAL CORP: S&P Cuts Ratings to B on Weak Financial Performance ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating and senior unsecured debt ratings on Finland-based forest product company M-real Corp. to 'B' from 'B+', reflecting the company's continued weak financial performance and the challenges it faces if it is to improve its performance. At the same time, the short-term corporate credit rating of 'B' was affirmed. The outlook is negative. "The rating action reflects Standard & Poor's lowered expectations for M-real's medium-term financial performance, given the company's weak 2006 results and the challenges of significantly improving its cash generation and debt protection measures," said Standard & Poor's credit analyst Andreas Zsiga. Margins and cash flows are expected to improve somewhat in 2007, based on further volume growth, price increases, reduced external pulp purchases, and other cost-cutting measures, as well as working-capital gains. Absolute debt levels could also fall somewhat as a result of asset disposals and reduced capital expenditure over the medium term. Standard & Poor's expects this improvement to be only modest, however. Performance is also sensitive to internal operating efficiency, adverse pricing, volume, input cost, and exchange rate development. This continues to expose the group's credit quality to further potential setbacks. The ratings on M-real reflect its exposure to challenging market conditions; commoditized products; weak pricing power; high and escalating input costs; and relatively weak operating performance resulting in weak profitability and credit measures. This is balanced by the group's relatively large and modern asset base, meaningful diversification between paper grades, and by its sizable shares of the European fine paper and paperboard markets. At Dec. 31, 2006, M-real had adjusted debt of EUR2.8 billion. =========== F R A N C E =========== ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units -------------------------------------------------------------- Patricia Russo, CEO of Alcatel-Lucent, during a meeting of the company's European group committee, stressed that the staff reductions undertaken by the company are the direct result of redundancies linked to the merger announced on Dec. 1, 2006, and of Nortel's UMTS activities acquisition. Ms. Russo emphasized that the staff reductions are also linked to the adaptation of the business model related to its customers' rapidly evolving needs and to the adjustment of some activities to the market perspectives. Those reasons, and especially the redefinition of the product portfolio, explain why a part of the plan concerns job reductions in R&D. While the company's presence in emerging countries is essential to adapt products to the specificities of those growing markets, the company insisted on the fact that those countries would experience the impact of synergies as well. Ms. Russo also reaffirmed the company's strong commitment to R&D in Western Europe and North America in particular. The missions of the company's major European R&D competence centers were also confirmed: -- access in Belgium and Spain; -- optics in Italy, Germany and France; -- submarine networks in France; -- IP in Belgium; -- 2G mobile in France and Germany; -- 3G mobile in France, following Nortel's UMTS activities acquisition, and in Germany; -- WiMAX in France and Germany; -- convergence in France, Belgium, Germany and Spain; -- enterprise in France; and -- research & innovation in France, Germany and Belgium. Alcatel-Lucent's active involvement in the working group on the future of telecom in Europe put in place by the French government is also dedicated to this commitment. Twelve members of the management team, along with 27 delegates from nine European countries, attended the meeting. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work, and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia. * * * As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit ---------------------------------------------------------- Delphi Corporation intends to shut down a chassis and steering products manufacturing facility in Cadiz, Spain, with the loss of about 1,600 workers. Since the company disclosed the closure, workers and their families have rallied in protest almost everyday, receiving extensive media coverage in Spain, Reuters reports. In a regulatory filing with the U.S. Securities and Exchange Commission, Thomas S. Timko, chief accounting officer and controller of Delphi Corp., explains that the Cadiz Facility Closure is consistent with: -- Delphi's overall transformation plan and decisions to close or sell facilities manufacturing non-core products; and -- Delphi's efforts to optimize its manufacturing footprint in order to lower its overall cost structure. The Cadiz Facility is the primary asset of Delphi's indirect wholly owned Spanish subsidiary Delphi Automotive Systems Espana, S.L. Mr. Timko notes that Delphi previously recorded long-lived asset impairments for the Facility in the fourth quarter of 2005 but does not expect to incur significant future impairments. Mr. Timko relates that Delphi could incur costs for the Closure based upon the outcome of its negotiations with the unions representing the Cadiz Facility Employees. Delphi estimates its costs to be around US$70,000,000 although the exact amount cannot be ascertained pending the resolution of DAS Espana's recent bankruptcy filing. Concurso Filing DAS Espana filed a petition for Concurso, or bankruptcy, under Spanish law, on March 20, with the approval of Delphi's Board of Directors. Delphi has informed the Spanish Court and the Cadiz Facility Employees that it would voluntarily provide funds sufficient to satisfy the separation allowance to which the Employees are entitled under applicable Spanish law, Mr. Timko says. Delphi cautions that its ability to commit to fund any severance-related payments and other closure charges in excess of the legally required minimum, depending on the amount, may be subject to the approval of the Bankruptcy Court. About Delphi Corporation Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. GDX AUTOMOTIVE: Court Puts French Unit In Legal Rectification ------------------------------------------------------------- The Commercial Court of Le Havre has placed the French unit of GDX Automotive Inc. at Saint-Nicolas-of-the-Size (Seine- Maritime) in legal rectification after the company declared a suspension of payments, Domenica Aubin writes for Les Echos. Subsequently, the court also appointed a receiver who will seek a buyer for the plant. According to the report, elected officials of the work's council regretted the move, as they believe financial results for 2006 were in line with forecasts. The French unit cut 190 jobs in an attempt to reduce costs and gain new markets. However, it was not able to achieve profitability since 2000 due to poor order book, Les Echos relates. The unit is owned by US private equity firm Cerberus. It employs 165 workers. Headquartered in Farmington Hills, Michigan, GDX Automotive Inc. -- http://www.gdxautomotive.com/-- supplies engineered and innovative vehicle sealing, glass encapsulation and antivibration components to the major automotive manufacturers. GDX employs nearly 7,000 people in North America, Europe and China. In Europe, the company maintains operations in Germany, Spain, France and the Czech Republic. TECUMSEH PRODUCTS: Brazilian Unit Files Bankruptcy Petition ----------------------------------------------------------- TMT Motoco, the Brazil-based engine-manufacturing subsidiary of Tecumseh Products Company, filed a request in Brazil for court permission to pursue a judicial restructuring. The requested protection under Brazilian bankruptcy law is similar to a U.S. filing for Chapter 11 protection in that during such a restructuring TMT Motoco would remain in possession of its assets and its creditors could not impose an involuntary restructuring on it. TMT Motoco requested the judicial restructuring following the rejection of its request for a temporary stay pending its previously announced appeal of a Brazilian court's decision, entered on March 15, 2007, denying its request to impose financial restructuring terms on two of its lenders. TMT Motoco has suspended operations and, with the consent of its unions, has placed its employees on vacation furlough. TMT Motoco and a majority of its lenders had previously signed an out-of-court restructuring agreement extending payment dates for TMT Motoco's debt on the same terms sought to be imposed on the two dissenting lenders in the court action. In conjunction with its March 15 ruling, the Brazilian court lifted a stay that had previously prevented one of the dissenting banks from pursuing collection proceedings. The court also implemented sweep procedures for TMT Motoco's bank accounts. These actions had the effect of accelerating TMT Motoco's debt to the dissenting bank, which totals approximately $18 million, making it all now due and payable and enabling the bank to pursue its remedies for collection under Brazilian law. TMT Motoco had also asked the Brazilian court for injunctive relief to suspend the outcome of the ruling pending its appeal; that request, however, was denied. TMT Motoco's appeal has been withdrawn. The filing in Brazil constitutes an event of default with the Tecumseh's domestic lenders. This will enable these lenders to accelerate repayment of Tecumseh's debt unless such lenders agree to waive the defaults or enter into curative amendments to Tecumseh's first and second lien credit agreements to eliminate the default and make other necessary changes to those agreements. In its ongoing discussions with these lenders, Tecumseh to date has received no indication that it intends to accelerate or that it will not agree to any requested consents, waivers, or amendments. There can be no assurance, however, that Tecumseh will reach an agreement with its domestic lenders or as to what the terms of any such agreement may be. Tecumseh's management is continuing to assess what impact the developments at TMT Motoco may have on its other businesses. Tecumseh's management is working to protect these other businesses from any adverse effects of the events at TMT Motoco to the greatest extent possible. In that regard, Tecumseh noted that it expects to meet all existing commitments to its engine customers in North America as it currently has six weeks of inventory en route from Brazil and it also has inventory available in its warehouse in El Paso, Texas and its plant in Dunlap, Tennessee. A full-text copy of Amendment No. 4 To First Lien Credit Agreement is available for free at http://ResearchArchives.com/t/s?1bfe A full-text copy of Amendment No. 1 To Amended And Restated Second Lien Credit Agreement is available for free at http://ResearchArchives.com/t/s?1bff A full-text copy of the Out-of-Court Restructuring Agreement is available for free at http://ResearchArchives.com/t/s?1c00 About Tecumseh Products Company Headquartered in Tecumseh, Michigan, Tecumseh Products Company (Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/-- manufactures hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. The company has offices in Italy, United Kingdom, Brazil, France, and India. ============= G E R M A N Y ============= ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units -------------------------------------------------------------- Patricia Russo, CEO of Alcatel-Lucent, during a meeting of the company's European group committee, stressed that the staff reductions undertaken by the company are the direct result of redundancies linked to the merger announced on Dec. 1, 2006, and of Nortel's UMTS activities acquisition. Ms. Russo emphasized that the staff reductions are also linked to the adaptation of the business model related to its customers' rapidly evolving needs and to the adjustment of some activities to the market perspectives. Those reasons, and especially the redefinition of the product portfolio, explain why a part of the plan concerns job reductions in R&D. While the company's presence in emerging countries is essential to adapt products to the specificities of those growing markets, the company insisted on the fact that those countries would experience the impact of synergies as well. Ms. Russo also reaffirmed the company's strong commitment to R&D in Western Europe and North America in particular. The missions of the company's major European R&D competence centers were also confirmed: -- access in Belgium and Spain; -- optics in Italy, Germany and France; -- submarine networks in France; -- IP in Belgium; -- 2G mobile in France and Germany; -- 3G mobile in France, following Nortel's UMTS activities acquisition, and in Germany; -- WiMAX in France and Germany; -- convergence in France, Belgium, Germany and Spain; -- enterprise in France; and -- research & innovation in France, Germany and Belgium. Alcatel-Lucent's active involvement in the working group on the future of telecom in Europe put in place by the French government is also dedicated to this commitment. Twelve members of the management team, along with 27 delegates from nine European countries, attended the meeting. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work, and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia. * * * As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. A-Z OPITZ: Creditors' Meeting Slated for May 2 ---------------------------------------------- The court-appointed insolvency manager for A-Z Opitz GmbH, Dr. Petra Hilgers, will present his first report on the Company's insolvency proceedings at a creditors' meeting at noon on May 2. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 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 Aug. 8 at the same venue. Creditors have until June 11 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against A-Z Opitz GmbH on March 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A-Z Opitz GmbH Werdauer Weg 3 10829 Berlin Germany B & S SICHERHEITSSYSTEME: Claims Registration Ends April 19 ----------------------------------------------------------- Creditors of B & S Sicherheitssysteme GmbH & Co. KG have until April 19 to register their claims with court-appointed insolvency manager Dr. Winfrid Andres. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on May 10, 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 Duesseldorf Meeting Hall A 409 Fourth Floor Muehlenstrasse 34 40213 Duesseldorf 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 insolvency manager can be reached at: Dr. Winfrid Andres Neuer Zollhof 3 40221 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against B & S Sicherheitssysteme GmbH & Co. KG on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B & S Sicherheitssysteme GmbH & Co. KG Halskestr. 21 40880 Ratingen Germany Attn: Dieter Schymik Zeppenheimer Str. 71 A 40489 Duesseldorf Germany BAUUNTERNEHMEN HAIBOECK: Claims Registration Ends May 9 ------------------------------------------------------- Creditors of Bauunternehmen Haiboeck GmbH have until May 9 to register their claims with court-appointed insolvency manager Eberhard Irrgang. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on June 5, 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 Hof Meeting Room 012 Ground Floor Berliner Place 1 95030 Hof 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 insolvency manager can be reached at: Eberhard Irrgang Martin-Luther-Platz 11 95100 Selb Germany Tel: 09287-2575 Fax: 09287-87197 The District Court of Hof opened bankruptcy proceedings against Bauunternehmen Haiboeck GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bauunternehmen Haiboeck GmbH Luisenburgstr. 9 95032 Hof Germany BENQ CORP: Creditors File EUR1.2 Bln Claims Against Mobile Unit --------------------------------------------------------------- About 4,350 creditors have filed claims against BenQ Mobile GmbH & Co. OHG, the bankrupt mobile subsidiary of Taiwan-based BenQ Corp., John Blau of IDG News Service reports citing BenQ insolvency administrator Martin Prager as saying. BenQ Mobile is facing up to EUR1.2 billion (US$1.6 billion) in claims, most of which comes from 3,500 former BenQ employees who are seeking up to EUR27 million in compensation, Mr. Blau relates. According to the report, creditors have asked Mr. Prager to examine whether they could require the company's Taiwanese parent to meet their demands as Mr. Prager's estimates of the mobile unit's assets fall only at around EUR300 million. BenQ Corp. Chairman K.Y. Lee is in pressure to turn the company around after the board of directors refused to accept his offer to resign from his post. Instead, the board said it will form a task force to review and report on all losses attributed to the acquisition of the mobile phone maker from Siemens in 2005. 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. * * * 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. BENQ CORP: Posts NT$7.89 Billion Loss in Fourth Quarter 2006 ------------------------------------------------------------ BenQ Corp. posted its fifth straight quarterly loss as its handset business continues to drag after it declared its German unit insolvent late last year, Reuters relates. According to the report, BenQ posted a net loss of NT$7.89 billion or US$238 million for the October-December quarter, widening from a year-ago loss of NTT$6.02 billion. Reuters notes that the result was compared with an average forecast for an NT$843 million loss from five analysts the news agency surveyed. The firm posted a loss of NT$12.22 billion in the third quarter, Reuters relates. The report says BenQ faces more challenges as it tries to strengthen its struggling core businesses, while its outlook is also clouded by the detention last week of its chief financial officer in a probe over suspected insider trading. However, BenQ said it will continue to sell phones in Asia, even though it failed to turn around the loss-making handset unit it bought from Germany's Siemens in late 2005, Reuters notes. 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. * * * 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. DEINBOECK IMMOBILIEN: Financial Woes Prompt Insolvency Filing ------------------------------------------------------------- Deinboeck Immobilien AG has filed a petition with the District Court of Bueckeburg on March 9 to commence insolvency proceedings in light of a possible failure to settle its obligations, Borsen Zeitung reports. The company's inability to achieve the financial structure needed to attract investors may have also triggered the filing, Borsen Zeitung suggests. Meanwhile, the court has appointed Olaf Handschuh as insolvency manager for the company. The insolvency manager can be reached at: Olaf Handschuh Mindener Str. 6 31675 Bueckeburg Germany Tel: 05722/1016 Fax: 05722/1018 The Debtor can be reached at: Deinboeck Immobilien AG Striegauer Weg 3 31655 Stadthagen Germany Attn: Stephan J. Gerken, Manager Neue Str. 28816 Stuhr Germany About Deinbock Immobilien Based in Frankfurt am Main, Germany, Deinbock Immobilien AG -- http://www.deinboeckag.de-- engages in the development, sale, and renting out of real estate objects. The Company had apartments and commercial objects in Cologne, Hamburg, Bergisch- Gladbach, Landshut, Berlin, and Stad. It has one domestic subsidiary. FIREPHONE GMBH: Claims Registration Ends April 8 ------------------------------------------------ Creditors of Firephone GmbH have until April 8 to register their claims with court-appointed insolvency manager Dr. Guenter Trutnau. Creditors and other interested parties are encouraged to attend the meeting at 1:50 p.m. on April 25, 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 Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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 insolvency manager can be reached at: Dr. Guenter Trutnau III. Hagen 30 45127 Essen Germany The District Court of Essen opened bankruptcy proceedings against Firephone GmbH on March 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Firephone GmbH Attn: Christian Duda, Manager Viehofer Str. 26 45127 Essen Germany GEMINI VERTRIEBSLOGISTIK: Claims Registration Ends May 7 -------------------------------------------------------- Creditors of GEMINI Vertriebslogistik GmbH have until May 7 to register their claims with court-appointed insolvency manager Ruediger Schmidt. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 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 Goeppingen Hall 0.24 Ground Floor Pfarrstrasse 25 73033 Goeppingen 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 insolvency manager can be reached at: Ruediger Schmidt Muehlesgassle 2 73054 Eislingen Germany Tel: 07161/82018 Fax: 07161/817976 The District Court of Goeppingen opened bankruptcy proceedings against GEMINI Vertriebslogistik GmbH on March 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GEMINI Vertriebslogistik GmbH Teckstr. 36 73107 Eschenbach Germany HERZOG GMBH: Claims Registration Ends May 2 ------------------------------------------- Creditors of Herzog GmbH have until May 2 to register their claims with court-appointed insolvency manager Peter Weigl. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 13, 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 Regensburg Room 105 Augustenstr. 5 Regensburg 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 insolvency manager can be reached at: Peter Weigl Ladehofstr. 28 93049 Regensburg Germany Tel: 0941/2803660 Fax: 0941/2803662 The District Court of Regensburg opened bankruptcy proceedings against Herzog GmbH on March 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Herzog GmbH Marienplatz 12 93354 Siegenburg Germany INFORMATION MANAGEMENT: Claims Registration Ends April 27 --------------------------------------------------------- Creditors of Information Management Software (IMS) GmbH have until April 27 to register their claims with court-appointed insolvency manager Sabine von Stein-Lausnitz. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on May 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 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 insolvency manager can be reached at: Sabine von Stein-Lausnitz Hegelstr. 39 39104 Magdeburg Germany Tel: 0391/5982244 Fax: 0391/5982158 The District Court of Magdeburg opened bankruptcy proceedings against Information Management Software (IMS) GmbH on March 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Information Management Software (IMS) GmbH Sandtorstr. 23 39106 Magdeburg Germany Attn: Ingo Dammig, Manager Rosenhag 22 39418 Stassfurt Germany KHS BAUCENTER: Creditors Must Register Claims by May 29 ------------------------------------------------------- Creditors of KHS Baucenter GmbH have until May 29 to register their claims with court-appointed insolvency manager Rainer Beck. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 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 Duisburg Hall C205 Second Floor Kardinal-Galen-Strasse 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 insolvency manager can be reached at: Rainer Beck Rheinstrasse 75 47623 Kevelaer Germany The District Court of Duisburg opened bankruptcy proceedings against KHS Baucenter GmbH on March 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KHS Baucenter GmbH Huenxer Strasse 33 46569 Huenxe Germany Attn: Wojciech Orlowski, Manager Gehrenstrasse 16 44149 Dortmund Germany LAUER BAUBETREUUNG: Creditors Must Register Claims by April 21 -------------------------------------------------------------- Creditors of Lauer Baubetreuung Immobilien GmbH have until April 21 to register their claims with court-appointed insolvency manager Reinhard Buchholz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 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 Ludwigshafen am Rhein Meeting Hall 13 Wittelsbachstr. 10 67061 Ludwigshafen am Rhein 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 insolvency manager can be reached at: Reinhard Buchholz Herzog-Otto-Str. 104 D 67105 Schifferstadt Germany The District Court of Ludwigshafen am Rhein opened bankruptcy proceedings against Lauer Baubetreuung Immobilien GmbH on March 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lauer Baubetreuung Immobilien GmbH Tilsiter Strasse 51 67117 Limburgerhof Germany MICHAEL BEHR: Creditors Must Register Claims by April 13 -------------------------------------------------------- Creditors of Michael Behr GmbH have until April 13 to register their claims with court-appointed insolvency manager Hans Raab. Creditors and other interested parties are encouraged to attend the meeting at 2:20 p.m. on May 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 Fuerth Hall 3 Ground Floor Baumenstrasse 32 Fuerth 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 insolvency manager can be reached at: Hans Raab Marktstr. 1 91448 Emskirchen Germany Tel: 09104/829418 Fax: 09104-829441 The District Court of Fuerth opened bankruptcy proceedings against Michael Behr GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Michael Behr GmbH Hermann-Glockner-Str. 7 90763 Fuerth Germany PERRA GASTRONOMIE: Creditors Must Register Claims by April 16 ------------------------------------------------------------- Creditors of PERRA Gastronomie GmbH have until April 16 to register their claims with court-appointed insolvency manager Angela Gerigk. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 7, 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 Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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 insolvency manager can be reached at: Angela Gerigk Katharinenstr. 7 46282 Dorsten Germany The District Court of Essen opened bankruptcy proceedings against PERRA Gastronomie GmbH on March 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PERRA Gastronomie GmbH Am Hang 10 46282 Dorsten Germany PH PARTY: Creditors' Meeting Slated for May 11 ---------------------------------------------- The court-appointed insolvency manager for PH Party House GmbH, Dr. Dirk Wittkowski will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on May 11. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 a.m. on Aug. 10 at the same venue. Creditors have until June 13 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Dirk Wittkowski Kirchblick 11 14129 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against PH Party House GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PH Party House GmbH Jan-Petersen-Strasse 18 12679 Berlin Germany PO-GA POOL-GARTEN-WELLNESS: Claims Registration Ends April 17 ------------------------------------------------------------- Creditors of PO-GA Pool-Garten-Wellness GmbH have until April 17 to register their claims with court-appointed insolvency manager Alexander Hoepfner. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on May 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 Darmstadt Hall 4.311 Fourth 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 insolvency manager can be reached at: Dr. Alexander Hoepfner Darmstadter Str. 43 64646 Heppenheim Germany Tel: 06252-6739988 Fax: 06252-6739989 The District Court of Darmstadt opened bankruptcy proceedings against PO-GA Pool-Garten-Wellness GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PO-GA Pool-Garten-Wellness GmbH Attn: Christoph Luehn, Manager Am Erbachwiesenweg 4 64646 Heppenheim Germany POHLSCHROEDER GELDSCHRANK: Claims Registration Ends May 10 ---------------------------------------------------------- Creditors of Pohlschroeder Geldschrank - Recyclingswerk GmbH & Co. KG have until May 10 to register their claims with court- appointed insolvency manager Yorck Eymelt. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 5, 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 Meeting Hall 119 B 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 insolvency manager can be reached at: Yorck Eymelt Verspoel 12 48143 Muenster Germany Tel: 0251/41701-0 Fax: +492514170160 The District Court of Muenster opened bankruptcy proceedings against Pohlschroeder Geldschrank - Recyclingswerk GmbH & Co. KG on March 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pohlschroeder Geldschrank-Recyclingswerk GmbH & Co. KG Attn: Arno Wittbrodt, Manager Heinrich-Buessing-Str. 16 49549 Ladbergen Germany RS-ELEKTRONIK: Claims Registration Period Ends April 20 ------------------------------------------------------- Creditors of RS-Elektronik GmbH have until April 20 to register their claims with court-appointed insolvency manager Frank W. Stroot. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 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 Osnabrueck Branch N 301 Kollegienwall 10 49074 Osnabrueck 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 insolvency manager can be reached at: Frank W. Stroot Rheiner Landstrasse 195b 49078 Osnabrueck Germany Tel: 0541/94422-600 Fax: 0541/94422-660 The District Court of Osnabrueck opened bankruptcy proceedings against RS-Elektronik GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RS-Elektronik GmbH Attn: Johannes Siebe, Manager Lienenere Str. 15 49186 Bad Iburg Germany RUDOLF WORM: Claims Registration Period Ends May 25 --------------------------------------------------- Creditors of Rudolf Worm GmbH & Co. KG have until May 25 to register their claims with court-appointed insolvency manager Dirk Obermueller. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 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 Bad Neuenahr-Ahrweiler Hall 4 William Route 55-57 53474 Bad Neuenahr-Ahrweiler 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 insolvency manager can be reached at: Dirk Obermueller Godesberger Allee 125-127 53175 Bonn Germany Tel: 0228/81000-56 Fax: 0228/81000-820 The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against Rudolf Worm GmbH & Co. KG on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rudolf Worm GmbH & Co. KG Mittelstr. 42-46 53424 Remagen-Kripp Germany Attn: Oskar Franz Worm, Manager Batterieweg 26 53424 Remagen Germany SANDWICH CLUB: Claims Registration Ends April 30 ------------------------------------------------ Creditors of Sandwich Club GmbH have until April 30 to register their claims with court-appointed insolvency manager Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 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 Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf 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 insolvency manager can be reached at: Dr. Joerg Nerlich Louise-Dumont-Str. 25 40211 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against Sandwich Club GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sandwich Club GmbH Jagenbergstrasse 4b 41468 Neuss Germany Attn: Tim Ralf Hoernemann, Manager Carlsplatz 4 40213 Duesseldorf Germany SUPULANE GMBH: Claims Registration Period Ends April 19 ------------------------------------------------------- Creditors of Supulane GmbH have until April 19 to register their claims with court-appointed insolvency manager Olaf Suehrer. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on May 31, 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 Hall 4.312 Fourth 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 insolvency manager can be reached at: Olaf Suehrer Steubenplatz 12 64293 Darmstadt Germany Tel: 06151/136270 Fax: 06151/1362729 The District Court of Darmstadt opened bankruptcy proceedings against Supulane GmbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Supulane GmbH Suesslingswiesenweg 6 64367 Muehltal Germany Attn: Uwe Gross, Manager Roede 1 64367 Muehltal Germany TANKRAPS GMBH: Claims Registration Period Ends May 11 ----------------------------------------------------- Creditors of TankRaps GmbH have until May 11 to register their claims with court-appointed insolvency manager Dr. Peter Staufenbiel. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 5, 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 Maschmuhlenweg 11 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 insolvency manager can be reached at: Dr. Peter Staufenbiel Dransfelder Strasse 19 A 37079 Goettingen Tel: 0551/9000950 Fax: 0551/9000955 E-Mail: staufenbiel@hauter.com The District Court of Goettingen opened bankruptcy proceedings against TankRaps GmbH on Feb. 20. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TankRaps GmbH Attn: Wolfgang Jacobi, Manager Johannes-Jeep-Str. 16 37127 Dransfeld Germany TRIPOS INC: Dec. 31 Balance Sheet Upside-Down by US$5.4 Million --------------------------------------------------------------- Tripos Inc. reported a net loss of US$4.9 million on revenues of US$27.4 million for the year ended Dec. 31, 2006, compared with a net loss of US$4.5 million on revenues of US$28.0 million for the year ended Dec. 31, 2005. The company posted an operating loss of US$4.6 million for the fiscal year ending Dec. 31, 2006, compared with an operating loss of US$3.1 million in 2005. Net loss allocable to common shareholders was US$35.0 million, or US$3.42 per basic share, compared with a net loss of US$4.3 million, or US$0.42 per basic share, in 2005. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. Tripos has called a special meeting of shareholders to approve the proposed sale of its Discovery Informatics business to Vector Capital. As shareholder approval is required for the sale, Generally Accepted Accounting Principles (GAAP) requires that Tripos continue to report the Discovery Informatics results as continuing operations until shareholder approval is obtained. During the fourth quarter of 2006, the company determined to hold the Discovery Research business for sale and accordingly, GAAP requires that the Discovery Research business be reported as discontinued operations for both the current and prior year periods. Impairment Charges The fourth-quarter financial results included a non-cash impairment charge in the amount of US$15 million to adjust the carrying value of assets in the Discovery Research business to the projected proceeds from a contemplated sale of the operating segment. This charge approximates the difference between the value of the Discovery Research business and the company's best estimate of the anticipated net sale price to be received for that business. In the third quarter of 2006, Tripos recorded an impairment charge of US$3.6 million that approximated the loss to be incurred on the sale of excess property, buildings, and equipment at its chemistry facility in Bude, England. Restructuring Charges The company incurred a restructuring charge in the fourth quarter of US$471,000 for the elimination of 22 positions at the Tripos Discovery Research facility. The number of jobs eliminated in the Discovery Research business in 2006 was 112 with an associated charge of US$1.6 million. Tripos also eliminated nine positions from the Discovery Informatics and administrative groups, incurring a charge of US$120,000 in the first quarter of 2006. A restructuring charge of US$861,000 was recorded in the fourth quarter of 2005 at Tripos Discovery Research related to a temporary building that was idled in anticipation of the job reductions at its chemistry facility. Operating Activities In the Discovery Informatics division a charge of US$650,000 was taken to reflect the additional costs to complete the informatics service contract with Wyeth Pharmaceuticals. This project has experienced delays and cost overruns that now are anticipated to result in the project being completed at cost. The adjustment in the fourth quarter eliminates the cumulative gross profit from the project and was a prime contributor for the business unit's quarterly operating loss. Tripos incurred operating losses of US$3.9 million at the Tripos Discovery Research Ltd. chemistry facility in the fourth quarter due primarily to costs and overhead exceeding the level of revenue achieved, and recording the obligation to repay a portion of a grant previously received to fund the expansion of its chemistry facilities. When operating results are combined with the restructuring and impairment charges, this segment had losses of US$19.4 million in the quarter. The fourth quarter marks the anniversary of the completion of the four-year US$90 million chemical compound project for Pfizer Inc. The inability to replace this source of revenue in the face of competition from India and China is the principal cause of the deterioration in the operating results in the Discovery Research Division. In addition, costs related to the strategic alternatives process - including proxy costs, investment-banking fees of US$250,000 along with legal and professional fees of nearly US$550,000 - amounted to approximately US$800,000 in the fourth quarter. For the full year, the Discovery Research unit was severely impacted by its inability to replace the large Pfizer contract. Excluding the restructuring charges and the impairment charges, this unit generated losses of US$9.7 million. When including the restructuring and impairment charges, the loss for the year was US$29.9 million from the Discovery Research business. In spite of repeated efforts to streamline the organization, Tripos was not able to generate sufficient revenues or cut fixed facility, equipment, and overhead costs quickly enough to keep pace with the loss of business that went offshore to less expensive locales. The Discovery Informatics unit generated losses of US$2 million for the year that were primarily driven by the incremental costs incurred and expected to be incurred to deliver the next- generation laboratory informatics project for Wyeth. The company had incurred costs in excess of US$1 million during 2006 related to the strategic alternatives process, including legal, professional, and investment banking fees. Tripos continues to believe that the costs of being a pubic company in the current regulatory environment are not justified by current revenue and near-term growth opportunities. "We are extremely disappointed with the 2006 operating results. New business that had been anticipated and cultivated in the Discovery Research area did not develop as forecasted," said Dr. John P. McAlister, president and chief executive officer of Tripos. "Throughout this year, we have dealt with the rapid realignment of the market for outsourced discovery research services to the low-cost venues in Asia and Eastern Europe. As a result, we have continued to take steps to streamline the Discovery Research organization as revenue expectations have changed while we have sought to build a project pipeline with existing customers and attract new business. "Throughout the year, but particularly in the fourth quarter, efforts to effect a successful negotiation and sale of our operating units added increased burden to the organization's management. These efforts required that the company maintain operations at certain levels in order to be able to offer operating enterprises to potential buyers." Liquidity and Capital Resources Due to the company's financial performance in 2006, Tripos was unable to comply with a financial covenant under its credit facility with LaSalle Bank N.A. The company requested a waiver of the covenant violation and an extension of the credit facility past its maturity date of Jan. 1. LaSalle Bank advised Tripos that it would waive the covenant violation and extend the maturity date until Feb. 28. Tripos and LaSalle completed an amendment to the loan agreements in December 2006. On Feb. 27, LaSalle Bank granted a further extension of the company's credit facility until March 21. During the discussions with LaSalle Bank that led to the extension through March 21, LaSalle reiterated that it does not intend to further extend the maturity date of the credit facility if the stockholders do not approve the Asset Sale. The company's ability to operate as a going concern and fund its operating and capital needs if stockholders do not approve the Asset Sale is dependent upon the company's ability to obtain capital in an amount sufficient to repay LaSalle and provide sufficient working capital for the company. The company does not have a commitment for alternative financing. If new financing is available, it would likely be on terms that are materially adverse to the company and its stockholders. If new capital is not available and stockholders have not approved the Asset Sale, the company would attempt to renegotiate the current terms of the LaSalle facility with the lender. If stockholders have not approved the Asset Sale and the company can neither obtain alternative financing nor renegotiate the current facility with LaSalle, the company may determine that it should pursue a restructuring of the company's debt and other interests under applicable law. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. TRIPOS INC: Shareholders Vote to Sell Unit & Liquidate Company -------------------------------------------------------------- Tripos Inc. disclosed that its proposals to sell the assets of its Discovery Informatics business to Vector Capital and to adopt a plan of dissolution and liquidation of the company following completion of that sale were each approved by the required stockholder vote on March 16. Liquidation of the company will occur following resolution of all corporate debts and obligations, and will commence approximately six months from now. About Vector Capital Based in San Francisco, California, Vector Capital -- http://www.vectorcapital.com/-- is a private equity boutique specializing in buyouts, spinouts, and recapitalizations of established technology businesses. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. TRIPOS INC: Completes US$26.2-Mln Sale of Discovery Informatics --------------------------------------------------------------- Tripos Inc. has completed the sale of the assets of its Discovery Informatics business to affiliates of Vector Capital and received a final purchase price of US$26.2 million for the unit. This represented an increased purchase price of approximately US$575,000 due to improved working capital of the business since the signing of the asset purchase agreement in November 2006. Tripos used a portion of the proceeds to retire existing debt with LaSalle Bank and Horizon Technology Finance. Liquidation of the company will occur following resolution of all remaining corporate debts and obligations, and will commence approximately six months from now. Efforts to sell Tripos' Discovery Research business are continuing, although no assurance can be given that a transaction for this division can be completed on satisfactory terms. About Vector Capital Based in San Francisco, California, Vector Capital -- http://www.vectorcapital.com/-- is a private equity boutique specializing in buyouts, spinouts, and recapitalizations of established technology businesses. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. W. GOEBEL: Merrill Lynch & Strategic Value Mull Acquisition ----------------------------------------------------------- W. Goebel Porzellanfabrik is currently the target of a takeover bid by U.S. investors Merrill Lynch and Strategic Value Partner for an undisclosed amount, Suddeutsche Zeitung relates. According to the report, the financiers plan to assimilate all 430 employees, although redundancies are still possible. They will also keep the Rodental facility since it has a five-year lease. Meanwhile, Insolvency Administrator Siegfried Beck foresees a successful future for the company in light of the potential acquisition, Suddeutsche Zeitung reveals. About W. Goebel Based in Rodental, Germany, W. Goebel Porzellanfabrik -- http://www.goebel.de/-- designs and manufactures handicraft products that include figurines, tableware, and lifestyle accessories made of porcelain, fine earthenware, and other materials. All Goebel products are handmade by highly experienced craftsmen and shaped and painted with high quality standards. In July 2006, W. Goebel filed for the commencement of insolvency proceedings in Germany. WCM BETEILIGUNGS: Salzgitter AG Eyes Klockner-Werke Buyout ---------------------------------------------------------- Salzgitter AG, through its Salzgitter Mannesmann GmbH unit, will launch an offer to buy out minority shareholders of Kloeckner- Werke AG, once it completes its acquisition of the 78% stake of WCM Beteiligungs- und Grundbesitz AG in the firm. In a statement released though euro adhoc, Salzgitter, which currently holds a total of 5.2% in Kloeckner-Werke, will offer EUR15 per share to acquire the remaining equity in the firm. Reuters relays that under German law, Salzgitter AG must make a mandatory offer to all Kloeckner-Werke shareholders once its stake reaches 30%. In a TCR-Europe report on March 21, WCM, represented by court- appointed insolvency administrator Michael C. Frege, has agreed to sell its stake in Kloeckner-Werke to Salzgitter AG for EUR240 million. The firm's shareholders and anti-trust authorities have yet to approve the share purchase agreement. Mr. Frege hopes the stake sale would represent a major move that could form the basis for a new insolvency plan. WCM applied for insolvency on Nov. 8, 2006, as a result of the extraordinary termination of the loan agreement by HSH Nordbank AG. The District Court of Frankfurt (Main) opened bankruptcy proceedings against the company on Nov. 21, 2006. The Court will verify the claims against the company at 9:00 a.m. on April 23, at: The District Court of Frankfurt (Main) Hall 1 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The administrator can be reached at: Michael C. Frege Barckhausstrasse 12-16 60325 Frankfurt (Main) Germany Tel: 069/71701-300 Fax: 069/71701-40-410 About Salzgitter Headquartered in Salzgitter, Germany, Salzgitter AG -- http://www.salzgitter-ag.de/-- is the Germany-based holding company for a group of more than 80 domestic and international subsidiaries active in the steel technology industry. About WCM AG Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses since 2002: EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. WEIGL & JANUSCHKOWETZ: Claims Registration Period Ends May 11 ------------------------------------------------------------- Creditors of Weigl & Januschkowetz Handels-GmbH have until May 11 to register their claims with court-appointed insolvency manager Dr. Michael Jaffe. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 12, 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 Munich Meeting Room 102 Infanteriestr. 5 80097 Munich 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 insolvency manager can be reached at: Dr. Michael Jaffe Franz-Joseph-Str. 8 80801 Muenchen Germany Tel: 089/255487-00 Fax: 089/255487-10 The District Court of Muenchen opened bankruptcy proceedings against Weigl & Januschkowetz Handels-GmbH on March 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Weigl & Januschkowetz Handels-GmbH Mittermayerstr. 6 221 Dachau Germany WOHNPARK NORD: Claims Registration Period Ends May 9 ---------------------------------------------------- Creditors of Wohnpark Nord GmbH have until May 9 to register their claims with court-appointed insolvency manager Karl- Joachim Meyer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 30, 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 Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg 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 insolvency manager can be reached at: Karl-Joachim Meyer Schiessgrabenstr. 8/9 21335 Lueneburg Tel: 20100 Fax: 20 10 14 Germany The District Court of Lueneburg opened bankruptcy proceedings against Wohnpark Nord GmbH on March 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wohnpark Nord GmbH Attn: Joachim-Anton von Alvensleben, Manager Grapengiesserstr. 31 21335 Lueneburg Germany WORM TEXTILHANDELSGESELLSCHAFT: Claims Registration Ends May 25 --------------------------------------------------------------- Creditors of Rudolf Worm Textilhandelsgesellschaft mbH have until May 25 to register their claims with court-appointed insolvency manager Dirk Obermueller. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 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 Bad Neuenahr-Ahrweiler Hall 4 William Route 55-57 53474 Bad Neuenahr-Ahrweiler 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 insolvency manager can be reached at: Dirk Obermueller Godesberger Allee 125-127 53175 Bonn Germany Tel: 0228/81000-56 Fax: 0228/81000-820 The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against Rudolf Worm Textilhandelsgesellschaft mbH on March 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rudolf Worm Textilhandelsgesellschaft mbH Mittelstr. 42 53424 Remagen Germany Attn: Rudolf Herbert Worm, Manager Batterieweg 26 53424 Remagen Germany ============= I R E L A N D ============= AFFILIATED COMPUTER: Confirms Receipt of Purchase Proposal ---------------------------------------------------------- Affiliated Computer Services Inc. confirmed that it received a proposal from Darwin Deason, Chairman of the Board of ACS, and Cerberus Capital Management L.P., to acquire, for a cash purchase price of US$59.25 per share, all of the outstanding shares of the company's common stock, other than certain shares and options held by Mr. Deason and members of the company's management team that would be rolled into equity securities of the acquiring entity in connection with the proposed transaction. A special committee of independent directors has been formed by the Board of Directors to evaluate the company's strategic alternatives, including the proposal from Mr. Deason and Cerberus. The committee has engaged independent legal counsel -- Weil, Gotshal & Manges LLP -- and expects forthwith to retain independent financial advisors to assist the committee. The committee expects to make a recommendation to the Board of Directors following its consideration of strategic alternatives, including the proposal, in due course. Letter to Mr. Deason The independent directors, through Lead Director Joseph P. O'Neill, have written a letter to Mr. Deason about his proposal. In that letter, Mr. O'Neill stated that the independent directors have threshold concerns with two aspects of the Proposal: 1) The Proposal states that Mr. Deason has agreed to work exclusively with Cerberus to negotiate a transaction and expect the Proposal to undergo a customary market check process only after execution of a definitive agreement; and 2) The Proposal indicates that Mr. Deason has entered into an agreement with Cerberus which involves, among other things, voting arrangements with respect to Mr. Deason's ACS shares. With regards to the first aspect, Mr. O'Neill emphasized that the independent directors are concerned that it provides Mr. Deason and Cerberus with an inherent timing and information advantage, which may chill the interest of other parties and raise questions about the fairness and reasonableness of the company's process for developing and considering alternative proposals. Accordingly, Mr. O'Neill relates that the independent directors are requesting that the exclusivity arrangement promptly be voided so that there is no constraint on the company's ability to deal with third parties concurrently with Mr. Deason and Cerberus. Concerning the second aspect, Mr. O'Neill said that the independent directors believe they need to be informed of Mr. Deason's agreements relating to the Proposal, including details as to the roll over of certain of his securities, cash he received in the transaction and ongoing incentive and other arrangements, in order to properly evaluate the Proposal. Moody's May Downgrade Ratings Moody's Investors Service placed the ratings for Affiliated Computer Services on review for possible downgrade after the company's disclosure of Mr. Deason and Cerberus' proposal to buy the company. "With a proposed consideration exceeding US$8 billion, the transaction, once approved, would likely result in a significant increase in financial leverage and a multiple notch downgrade of the company's ratings", John Moore, Moody's Senior Analyst, said. Ratings placed on review for possible downgrade include the Ba2 rated Senior Secured Term Loan, Senior Secured Revolving Credit Facility, Senior Notes, and US$500 Million due 2010 and 2015. Deason-Cerberus Buyout Proposal In their proposal, Mr. Deason and Cerberus said their proposed price represents a premium of 15.5% over the closing price of the company's class A common stock on March 19, 2007, and an 18.3% premium over the 90-day average closing price. Mr. Deason and Cerberus expect that the company's Board of Directors will establish a special committee of independent directors to consider and negotiate the proposal on behalf of the company's public shareholders and ultimately to recommend to the Board of Directors whether to approve the Acquisition. Mr. Deason and Cerberus also expect that the Special Committee will engage its own legal and financial advisors to assist in its review. Specifically, Mr. Deason and Cerberus propose, among others, that: a) the acquisition would be structured as a merger in which a newly formed acquisition vehicle of a holding company organized by the proponents for the transaction would merge with and into the company; b) Mr. Deason continue as Chairman following the acquisition; c) the business would continue to be run in accordance with the company's current practice while maintaining the company's valuable employee base; and d) in connection with the transaction, Mr. Deason would receive performance-based equity incentives. Financing Mr. Deason committed to roll, into equity securities of the acquiror, company common stock and options having an aggregate value of approximately US$300 million based on the proposed acquisition price. Members of the company's executive management team would also be required to roll over company common stock and options representing at least 70% of the aggregate value of the company common stock and options held by them based on proposed acquisition price, and other members of the company's management team would be required to roll over at least half of the aggregate value of the company common stock and options held by them. Members of management would also be afforded the opportunity to roll over more company common stock and options. Cerberus will make a significant cash equity investment to fund a substantial portion of the purchase price. The balance of the purchase price will be financed through a combination of bank loans and high yield securities issued pursuant to commitment letters from financial institutions. Citigroup Commitment Letter Mr. Deason and Cerberus received a letter from Citigroup Global Markets Inc. stating that it is highly confident of its ability to raise the debt necessary to complete the transaction. In that letter, Citigroup stated, "It is our understanding that acquiror intends to finance the acquisition with: (i) up to US$4,050 million of funded Senior Secured Credit Facilities; (ii) the underwriting or private placement of up to US$2,515 million High Yield Notes; and (iii) the contribution by the acquiror of cash equity and rollover equity, all of which will allow [the acquiror] to complete the acquisition and to pay fees and expenses associated therewith." In evaluating the acquisition, Citigroup said it "is highly confident of its ability to (i) underwrite fully or privately place through a 144A offering with subsequent registration rights the Notes and (ii) underwrite fully and syndicate the Senior Credit Facilities." Timetable Cerberus has already begun its due diligence review, but will need to conduct additional confirmatory business, accounting and legal due diligence. The proposal is subject to completion of the confirmatory due diligence by Cerberus, as well as negotiation and execution of a mutually satisfactory merger agreement. Cerberus believes it can complete its due diligence within 45 days from the date it is granted full access to the company's management and the requisite due diligence materials. The proponents anticipate negotiation of the merger agreement concurrently with the due diligence process, with a view to the execution of the merger agreement in early-May 2007. Cerberus said it is prepared to commence its confirmatory due diligence review immediately following negotiation and execution of a mutually satisfactory confidentiality agreement. Second Quarter 2007 Results As reported in the Troubled Company Reporter on Mar. 9, 2007, Affiliated Computer Services Inc. reported net income of US$72.1 million on revenues of US$1.426 billion for the second quarter of fiscal 2007 ended Dec. 31, 2006, compared with net income of US$102.4 million on revenues of US$1.347 billion for the second quarter of the prior year. At Dec. 31, 2006, the company's balance sheet showed US$5.928 billion in total assets, US$4.038 billion in total liabilities, and US$1.89 billion in total stockholders' equity. About Affiliated Computer A FORTUNE 500 company, Affiliated Computer Services Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. AFFILIATED COMPUTER: Buyout Offer Cues Fitch's Negative Watch ------------------------------------------------------------- Fitch Ratings has placed Affiliated Computer Services, Inc. on Rating Watch Negative after the proposed offer from Darwin Deason, founder and current chairman of ACS, and Cerberus Capital Management L.P. to acquire the company in a leveraged buyout transaction valued at US$8.2 billion, including existing debt. Ratings affected: -- Issuer Default Rating 'BB'; -- Senior secured revolving credit facility at 'BB'; -- Senior secured term loan at 'BB'; and -- Senior notes at 'BB-'. Approximately US$3.3 billion of debt, including the US$1 billion revolving facility, is affected by Fitch's action. Resolution of the Negative Rating Watch is contingent on these factors: -- The decision reached by ACS' Board of Directors to accept or reject the offer following a review of the transaction; -- The degree of leverage utilized in financing the acquisition should the Board approve the transaction; -- The acquirer's ability to arrange what Fitch believes will be approximately US$6 billion of debt financing, assuming a 30% equity contribution. Fitch believes ACS' credit metrics proforma for the transaction support an IDR in the 'B' category. Based on the proposed offer price and a 30% equity contribution, Fitch estimates pro forma leverage may increase to 6.3x from 2.8x as of Dec. 31, 2006 due to a projected US$3.3 billion increase in outstanding debt to US$6 billion in order to finance the transaction. Fitch believes proforma interest coverage may decline to 1.7x from 7.1x for the latest 12 months ended Dec. 31, 2006. Fitch believes the majority of outstanding debt will be refinanced in an LBO transaction. Total debt as of Dec. 31, 2006 was approximately US$2.6 billion, consisting primarily of US$1.8 billion of secured term loans due 2013, US$275 million of borrowings under the revolving credit facility, US$250 million of senior notes due June 2010 and US$250 million of senior notes due June 2015. Under the terms of the credit facility agreement, consummation of the proposed transaction would be an event of default, requiring immediate repayment of all outstanding borrowings under the facility due to a change of control provision and likely violation of financial covenants in the agreement, including maximum consolidated total leverage ratio of 4x and interest coverage covenant of 4.5x. The indenture governing ACS' US$500 million of senior notes offers no protection in the event of an LBO. ACS previously granted equal and ratable liens in favor of the holders of the senior notes in all assets other than accounts receivable when it obtained the current secured credit facility. The 'BB-' rating for the senior notes incorporates the fact that the secured credit facilities have the sole rights to ACS' accounts receivable, which represented approximately 21% of total assets and 43% of tangible assets as of Dec. 31, 2006. Acceleration of principal on the senior notes as a result of ACS' failure to timely file its 10-K for the year ended June 30, 2006, remains uncertain due to the company's pending lawsuit against its Trustee, in which ACS seeks a declaratory judgment affirming its position that no default has occurred under the indenture. However, Fitch believes there is a possibility the senior notes will be refinanced in the proposed transaction to avoid the uncertainty associated with a sizeable contingent payment relative to current liquidity and minimal pro forma free cash flow in a highly leveraged capital structure. AFFILIATED COMPUTER: Buyout Offer Cues S&P's Negative Watch ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit and senior secured ratings on Dallas, Texas-based Affiliated Computer Services Inc. on CreditWatch with negative implications. "The CreditWatch placement follows the announcement that an investment group led by ACS' founder has offered to buy the company for about US$8.2 billion (including the assumption of debt)," said Standard & Poor's credit analyst Philip Schrank. If the LBO is successful, operating lease-adjusted leverage likely will increase from the 5x threshold incorporated into the current rating. Standard & Poor's will monitor any negotiations and respond to any change in the company's business or financial profile. ALPSTAR CLO: Moody's Rates EUR24-Million Class E Notes at (P)Ba3 ---------------------------------------------------------------- Moody's assigned provisional credit ratings to nine classes of Notes to be issued by Alpstar CLO 2 p.l.c., an Irish special purpose company. The ratings are: -- EUR112.5-million Class AR Senior Secured Variable Funding Notes due 2024: (P)Aaa; -- EUR200.5-million Class A1 Senior Secured Floating Rate Notes due 2024: (P)Aaa; -- EUR78-million Class A2 Senior Secured Floating Rate Notes due 2024: (P)Aaa; -- EUR48.5-million Class B Deferrable Senior Secured Floating Rate Notes due 2024: (P)Aa2; -- EUR37.5-million Class C Deferrable Senior Secured Floating Rate Notes due 2024: (P)A2; -- EUR42-million Class D Deferrable Senior Secured Floating Rate Notes due 2024: (P)Baa3; -- EUR24-million Class E Deferrable Senior Secured Floating Rate Notes due 2024: (P)Ba3; -- EUR10-million Class P Combination Notes due 2024: (P)A3; and -- EUR2.8-million Class Q Combination Notes due 2024: (P)Baa3; The EUR57-million Subordinated Notes due 2024 are expected to be issued but will not be rated by Moody's. The provisional ratings assigned by Moody's to the various Classes of Senior Secured Notes address the expected loss posed to investors by the legal final maturity in 2024. The provisional ratings assigned to the Combination Notes address the ultimate repayment of the rated balance in respect of such Combination Notes on or before the legal final maturity, where the rated balance is equal, at any time, to the principal amount of the Combination Notes on the closing date minus the aggregate of all payments made from the closing date to such date, either through interest or principal payments. It is not an opinion about the ability of the Issuer to pay interest. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments and other market risks, have not been addressed and may have a significant effect on yield to investors. These provisional ratings are based upon: 1. An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. The protection against losses through the subordination of the more junior classes of Notes to the more senior classes of Notes; 3. The overcollateralisation of the Notes; 4. The analysis of the foreign currency risk involved in the transaction; 5. The expertise of Mignon Geneve S.A. as the collateral adviser; and 6. The legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a collateral portfolio of approximately EUR600 million, comprised primarily of European senior secured loans. Second lien loans, mezzanine loans and senior unsecured loans might also be included in the portfolio up to a limit of 15% of the collateral balance. This portfolio will be dynamically managed by Alpstar Management Jersey Limited while Mignon Geneve S.A. will provide investment advice to the manager. This portfolio will be partially acquired on the closing date and partially during the 12 month ramp-up period. At the end of the ramp-up period, the portfolio will have to be in compliance with several portfolio guidelines. Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to buy or sell assets in the portfolio. Any addition or removal of assets will be subject to the reinvestment criteria which includes, amongst other, the portfolio guidelines described there above. This transaction features a multi-currency Class of Variable Funding Notes which ranks pari-passu with the Class A1 Notes. The Variable Funding Notes can be drawn in Euros, Sterling or US Dollars. Non-Euro denominated advances will be used to purchase loans denominated in the currency of the advances. Should such Non-Euro denominated assets default, Non-Euro advances would not be fully collateralized by Non-Euro denominated assets and therefore Euro proceeds may need to be converted into the relevant Non-Euro currency in order to redeem Non-Euro advances, thus creating a foreign exchange risk exposure that is partially mitigated by the presence of FX call options. This currency risk has been considered in Moody's analysis. Moody's issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign definitive ratings. A definitive rating may differ from a provisional rating. The transaction is arranged by Banc of America Securities Limited. EUROMAX VI: Fitch Assigns BB Ratings to EUR3-Mln Class E Notes -------------------------------------------------------------- Further to its assigning expected ratings to Euromax VI ABS LTD's upcoming issue of floating rate notes on March 16, Fitch states that the revision of issue size to EUR430 million does not affect the ratings, as detailed below. The transaction is a securitization of structured finance assets including primarily residential and commercial mortgage-backed securities. -- EUR5 million class X note due 2012: 'AAA' -- EUR333 million class A floating rate notes due 2097: 'AAA' -- EUR37.0 million class B floating rate notes due 2097: 'AA' -- EUR16.0 million class C deferrable floating rate note due 2097: 'A' -- EUR16.0 million class D deferrable floating rate note due 2097: 'BBB' -- EUR3.0 million class E deferrable floating-rate note due 2097: 'BB' The text presented below is that of the March 16 announcement, barring changes to credit enhancement. The expected ratings of the class X, A and B notes address the ultimate repayment of principal at maturity and the timely payment of interest when due, according to the terms of the notes. For the class C, D and E notes, which can defer interest, the expected ratings address the ultimate payment of principal and interest, including deferred interest, at maturity. The final ratings are contingent upon receipt of final documents conforming to information already received. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager, Collineo Asset Management GmbH, subject to the guidelines outlined in the collateral management agreement. The guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. Collineo will actively manage the collateral during the six-year reinvestment period. Collineo's CDO Asset Manager rating of 'CAM 2' was affirmed on October 27, 2006. The ratings are also based on the credit enhancement provided to the various classes of notes in the form of subordination, structural protection and excess spread. Credit enhancement, in the form of subordination, for the A notes will total 21.65%, of which 8.7% will be provided by the B notes, 3.8% by the C notes, 3.8% by the D notes, 0.7% by the E notes and 4.7% by the EUR20 27 unrated subordinated notes. Euromax VI ABS LTD is a limited liability company incorporated under the laws of Ireland. At the closing date, the issuer is anticipated to have purchased 100% of the target portfolio, although the manager will have an additional nine months, if required, to fully invest the portfolio. Fitch expects Euromax VI ABS LTD to issue combination notes that will comprise components of the rated notes as well as the class subordinated notes. The interest and principal cash flows on the combo notes will be derived from the interest and principal cash flows on their respective components. KINTYRE CLO: Moody's Rates EUR11.55-Mln Class E Notes at Ba3 ------------------------------------------------------------ Moody's assigned these ratings to the notes issued by Kintyre CLO I P.L.C., a special purpose company incorporated in Ireland: -- EUR239.75-million Class A Senior Secured Floating Rate Notes due 2023: Aaa; -- EUR20.3-million Class B Senior Secured Deferrable Floating Rate Notes due 2023: Aa2; -- EUR21.7-million Class C Senior Secured Deferrable Floating Rate Notes due 2023: A2; -- EUR19.95-million Class D Senior Secured Deferrable Floating Rate Notes due 2023: Baa3; and -- EUR11.55-million Class E Senior Secured Deferrable Floating Rate Notes due 2023: Ba3. The ratings address the expected loss posed to investors by the legal final maturity date in Dec. 2023. These ratings are based upon: 1. An assessment of the credit quality and the diversification of the assets to be included in the portfolio; 2. An assessment of the eligibility criteria, reinvestment criteria, collateral quality tests, percentage limitations and coverage tests applicable to the future additions to the portfolio; 3. The overcollateralization of the notes; 4. The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 5. The perfect asset swap, which insulates Kintyre CLO I P.L.C. from the volatility of foreign currency exchange rates for non-Euro obligations; 6. The expertise of RBS CDO Fund and Investment Group in the management of leveraged finance portfolios as Investment Advisor; and 7. The legal and structural integrity of the transaction. This transaction is a high yield collateralized loan obligation related to a EUR338 million portfolio comprised primarily of European senior and mezzanine loans. The portfolio is dynamic and Plemont Portfolio Managers Limited under the advisory of RBS CDO Fund and Investment Group will provide portfolio management services to Kintyre CLO I P.L.C. in respect thereof. The portfolio was approximately 85% ramped-up at closing, and is expected to be fully ramped-up within half year after closing, subject to compliance with the eligibility criteria, Percentage Limitations, Coverage Tests and Collateral Quality Tests (including, amongst other tests, the diversity score, the weighted average rating factor, the weighted average recovery rate, the weighted average spread and the weighted average maturity of the assets in the portfolio). This transaction was arranged by The Royal Bank of Scotland. ========= I T A L Y ========= ALITALIA SPA: Notes Risk on Transfer to Fiumicino Airport --------------------------------------------------------- Alitalia S.p.A. wishes to point out that the government's decision to transfer low-cost flights from Ciampino to Fiumicino in order to deal with problems of an environmental nature arising from over-development of Ciampino airport, would risk having a negative impact on the Company's operations during rush-hour periods. The decision is risky since low-cost carriers would not generate additional traffic on routes differing from existing ones but, on the contrary, would overlap with some of the flight operations carried out by Alitalia at Fiumicino. Furthermore, such a move could also have repercussions on the quality of airport services provided for carriers considering the impact that the extra traffic would have on the airport infrastructures. Therefore, bearing in mind what happens in other European countries, Alitalia maintains that it is essential to adopt a regional policy that envisages transferring low-cost carriers, currently operating at Ciampino, to more decentralized airports such as Latina, Frosinone or Viterbo. Such a scenario would enable both types of business models to exist side by side, with main airports for full-service carriers such as Alitalia, and peripheral airports for low-cost carriers, as already happens in Paris, Brussels, London, Barcelona, Frankfurt, Stockholm, and Hamburg. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. PARMALAT SPA: Investors to Get US$50-Mln Partial Settlement ----------------------------------------------------------- A multi-national notification program began on March 22, 2007, as ordered by the U.S. District Court for the Southern District of New York, to alert investors, brokers, financial institutions, and other nominees who bought the common stock and/or bonds of Parmalat Finanziaria S.p.A. and its subsidiaries and affiliates from Jan. 5, 1999 through and including Dec. 18, 2003 about a US$50 million partial settlement of a U.S. class action lawsuit about the prices paid for Parmalat common stock and bonds. The lawsuit alleges that Parmalat and numerous other defendants participated in a fraudulent financial scheme, resulting in the understatement of Parmalat's debt by nearly US$10 billion and the overstatement of its net assets by over US$16 billion. Parmalat ultimately filed for bankruptcy, and the value of its stock and bonds dramatically declined. Several of the defendants have now agreed to settle the case (Banca Nazionale del Lavoro S.p.A. (BNL), Credit Suisse Group, Credit Suisse, Credit Suisse International, and Credit Suisse Securities (Europe) Limited), while the lawsuit proceeds against Parmalat S.p.A. (the successor to Parmalat Finanziaria S.p.A.), financial institutions, two auditing firms, and certain individuals. The Court defined "Class members" in the settlement to include all people and entities who bought Parmalat common stock and/or bonds from Jan. 5, 1999 through and including Dec. 18, 2003, and were damaged thereby, regardless of where such people live or where they purchased their Parmalat securities. Notices informing Class members about their legal rights will be mailed, and are scheduled to appear in publications reaching readers in the United States, Italy, and around the world, leading up to a hearing in New York on July 19, 2007, when the Court will consider whether to approve the settlement. In May 2004, the Court appointed the law firms of Cohen, Milstein, Hausfeld & Toll, P.L.L.C, of Washington, D.C., Grant & Eisenhofer, P.A., of Wilmington, DE, and Spector Roseman & Kodroff, P.C., of Philadelphia, PA, to represent the Class. These firms have been litigating this case known as In re Parmalat Securities Litigation, No. 04 Civ. 0030 (LAK), since that time, and they negotiated the partial settlement. Those affected by this settlement may simply await further notice about how to ask for a payment, or may now exclude themselves from the partial settlement, or object to the terms of the proposed settlement. The deadline for exclusions and objections is June 19, 2007. The money in the settlement fund will not be distributed yet. In part because the litigation is still proceeding against the remaining defendants, there is no plan to allocate the money now; thus it is not possible to determine the amount of Class member payments, or what the average payment will be on a per share or per bond basis. Payments will depend on the number of valid claim forms that Class members eventually send in, how many shares of Parmalat stock they bought or how many bonds they bought, when they bought and sold them, and the prices they paid. A neutral Court website has been established at http://www.ParmalatSettlement.com/where notices and the Settlement Stipulation may be obtained. Those affected may also write to: Parmalat Notice Administrator P.O. Box 4068 Portland, OR 97208-4068 The Class Counsels are: 1) Mark S. Willis, Esq. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Telephone +1-202-408-4606 2) James Sabella, Esq. Grant & Eisenhofer P.A. Telephone +1-646-722-8500 3) Robert M. Roseman, Esq. Spector Roseman & Kodroff, P.C. Telephone +1-215-496-0300 About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than USUS$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PARMALAT SPA: New Jersey Court Denies Citigroup Motion to Appeal ---------------------------------------------------------------- The Superior Court of New Jersey, Appellate Division, has rejected Citigroup's Motion for Leave to Appeal the denial of the motion to dismiss Parmalat S.p.A.'s complaint against the bank on the basis of forum non-conveniens. Parmalat's suit against Citigroup continues in New Jersey, the forum originally selected by Parmalat. About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PARMALAT SPA: Earns EUR192.5 Mln for Year Ended Dec. 31, 2006 ------------------------------------------------------------- Parmalat S.p.A. released its consolidated financial results for the full year 2006. The company reported EUR192.5 million in net profit against EUR3.84 billion in revenues for the full year 2006, compared with EUR300,000 in net loss against EUR3.68 billion in revenues. Parmalat said in a statement that the positive figure reflects a favorable shift in the sales mix, the implementation of measures to increase manufacturing and distribution efficiency and a positive change in foreign exchange rates. The company's financial performance in 2006 was also boosted by proceeds from legal settlements, The Associated Press reports. The company also halved its net debt from EUR369.3 million as of Dec. 31, 2005, to EUR170 million as of Dec. 31, 2006. The figure, however, excludes, proceeds from a EUR112-million settlement with Banca Nazionale del Lavoro S.p.A., which was booked in January 2007. Outlook for 2007 In 2007, absent non-recurring transactions and changes in the scope of consolidation, Parmalat expects to report higher revenues and EBITDA than in 2006, consistent with its performance in the first two months of the current year. These expectations are based on to the assumption of a positive contribution by functional products and the success of marketing and industrial projects that are currently being implemented. The positive operational results of the countries where the Group operates could partially suffer, in the Group consolidation, of the appreciation in value of the euro versus the currencies of the countries. Thanks to the collection early in 2007 of the receivables generated by the settlements with BNL, BPM and Deloitte, virtually all of the net indebtedness has been eliminated. Moreover, the Group's operations in the various countries are expected to generate sufficient cash flows to fund their capital investment programs and their debt service obligations. About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. REVLON CONSUMER: Dec. 31 Balance Sheet Upside-Down by US$1.2 Bln ---------------------------------------------------------------- Revlon Consumer Products Corp. increased its net loss for the year ended Dec. 31, 2006, to US$244.5 million, from US$77.8 million for the year ended Dec. 31, 2005. Net sales in 2006 and 2005 were somewhat flat at US$1.33 billion, sales in 2005 were higher by US$900,000. The company had an operating loss of US$43.6 million in 2006, as compared with an operating income of US$72.5 million a year earlier. The operating loss was partly due to the increased selling, general, and administrative expenses of US$802.1 million in 2006, as compared with US$750.2 million in 2005. The company's balance sheet as of Dec. 31, 2006, showed a stockholders' deficiency of US$1.22 billion, resulting from total assets of US$944 million and total liabilities of US$2.16 billion. It stockholders' deficiency in 2005 was US$1.09 billion. As of Dec. 31, 2006, the company's cash and cash equivalents totaled US$35.4 million, slightly up from US$32.4 million in 2005. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1bbf Year 2006 Highlights In September 2006, the company elected David Kennedy as a Director and as president and chief executive officer to replace Mr. Stahl. Mr. Kennedy was also elected as a director. Mr. Kennedy previously served as Revlon, Inc.'s executive vice president, chief financial officer and treasurer, and prior to that as the company's executive vice president and president of Revlon, Inc.'s international operations. Revlon, Inc. also announced in September 2006 the discontinuance of its Vital Radiance brand, which did not maintain an economically feasible retail platform for future growth. During 2006 the company incurred charges of US$9.4 million in connection with the Mr. Stahl's departure and US$60.4 million in connection with the discontinuance of the Vital Radiance brand. Credit Agreements On Dec. 20, 2006, the company replaced the US$800 million 2004 Term Loan Facility under its 2004 Credit Agreement with a new 5- year, US$840 million 2006 Term Loan Facility pursuant to the 2006 Term Loan Agreement, as of Dec. 20, 2006, among the company, as borrower, the lenders party thereto, Citicorp USA, Inc., as administrative agent and collateral agent, Citigroup Global Markets Inc., as sole lead arranger and sole bookrunner, and JPMorgan Chase Bank, N.A., as syndication agent. As part of the bank refinancing, the company also amended and restated the 2004 Multi-Currency Facility by entering into the US$160 million 2006 Revolving Credit Agreement that amended and restated the 2004 Credit Agreement. The company was in compliance with all applicable covenants under the 2006 Credit Agreements as of Dec. 31, 2006. At Feb. 28, 2007, the 2006 Term Loan Facility was fully drawn and availability under the US$160 million 2006 Revolving Credit Facility, based upon the calculated borrowing base less about US$15.1 million of outstanding letters of credit and nil then drawn on the 2006 Revolving Credit Facility, was about US$134.4 million. About Revlon Consumer Revlon Consumer Products Corp., headquartered in New York, is a 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 Troubled Company Reporter on Dec. 11, 2006, Moody's Investors Service assigned a B1 rating to Revlon Consumer Products Corp.'s US$160 million senior secured asset based revolving credit facility and a B3 rating to the company's new US$840 million senior secured term loan. At the same time, Moody's affirmed the company's long-term ratings, including the corporate family rating of Caa1. The outlook remains negative. =================== K A Z A K H S T A N =================== AKTUBSTROYCENTRE LLP: Creditors Must File Claims by May 1 --------------------------------------------------------- LLP Aktubstroycentre has declared insolvency. Creditors have until May 1 to submit written proofs of claim to: LLP Aktubstroycentre Eset Batyr Str. 138-27 Aktube Kazakhstan Tel: 8 (3152) 56-44-27 BIKEEV LLP: Creditors' Claims Due May 1 --------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region has declared LLP Bikeev insolvent on February 12. Creditors have until May 1 to submit written proofs of claim to: LLP Bikeev Office 409 Dostyk-Drujba ave. 215 Uralsk West Kazakhstan Region, Kazakhstan BLAGPUSTROYSTVO LLP: Proof of Claim Deadline Slated for May 1 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Blagpustroystvo insolvent. Creditors have until May 1 to submit written proofs of claim to: LLP Blagpustroystvo Karl Marks Str. 3 Abai Karaganda Kazakhstan CLASS-1 LLP: Claims Registration Ends May 1 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Class-1 insolvent. Creditors have until May 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan LUX LLP: Claims Filing Period Ends May 1 ---------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Lux insolvent. Creditors have until May 1 to submit written proofs of claim to: LLP Lux Micro District 3, 9 Abai Karaganda Kazakhstan MICHURINSKOYE SELENERGO: Creditors Must File Claims by May 2 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Karaganda has declared JSC Michurinskoye Selenergo insolvent. Creditors have until May 2 to submit written proofs of claim to: JSC Michurinskoye Selenergo Loboda Str. 20 Karaganda Kazakhstan STOLICHNOYE SNABJENIYE: Creditors' Claims Due May 4 --------------------------------------------------- CJSC Opened Commodity Exchange Stolichnoye Nabjeniye has declared insolvency. Creditors have until May 4 to submit written proofs of claim to: CJSC Opened Commodity Exchange Stolichnoye Nabjeniye Beibitshilik Str. 18-18 Astana Kazakhstan STROYOPTSERVICE-LTD LLP: Claims Registration Ends May 1 ------------------------------------------------------- LLP Stroyoptservice-Ltd has declared insolvency. Creditors have until May 1 to submit written proofs of claim to: LLP Stroyoptservice-Ltd Pushkin Str. 134-21 Astana Kazakhstan ZARYA LLP: Claims Filing Period Ends May 1 ------------------------------------------ The Specialized Inter-Regional Economic Court of West Kazakhstan Region has declared LLP Zarya insolvent on January 29. Creditors have until May 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of West Kazakhstan Region Jukov Str. 10-35 Uralsk West Kazakhstan Region Kazakhstan =================== K Y R G Y Z S T A N =================== RASAK CREDO: Claims Filing Period Ends May 2 -------------------------------------------- LLC Rasak Credo Lombard has declared insolvency. Creditors have until May 2 to submit written proofs of claim to: LLC Rasak Credo Lombard Sulaimanov Str. 3/10 Osh, Kyrgyzstan ================= L I T H U A N I A ================= BITE FINANCE: Fitch Assigns Junk Ratings to EUR110-Mln Loan ----------------------------------------------------------- Fitch Ratings assigned final ratings to Bite Finance International BV's EUR190 million senior secured notes due 2014 at 'B'/'RR3' and EUR110 million senior subordinated notes due 2017 at 'CCC+'/'RR5'. In February the agency assigned Lithuania-based UAB Bite Lietuva an Issuer Default rating of 'B-' with a Stable Outlook and. SIA EECF Bella FinCo's EUR15 million senior secured revolving credit facility a 'B'/ 'RR3' rating. Although the senior secured note offering was increased to EUR190 million from EUR185 million, the senior subordinated notes offering was decreased by the same amount to EUR110 million, such that absolute levels of leverage remain unchanged. The higher proportion of senior secured debt relative to the junior debt does not significantly affect recoveries for either instrument, and the final ratings are therefore unchanged from the expected levels published in February. =================== L U X E M B O U R G =================== EVRAZ GROUP: Launches Offer to Buy Out NTMK Minority Stake ---------------------------------------------------------- Mastercroft Ltd., a wholly owned subsidiary of Evraz Group S.A., has commenced a cash tender offer to purchase around 5% of the Nizhny Tagil Iron and Steel Plant (NTMK) outstanding shares. At the moment Mastercroft Limited holds 94.997% of NTMK share capital, and is making an offer to NTMK's minority shareholders to tender the remaining 5.003187% of NTMK's outstanding common stock for a cash consideration of RUR63.72 per share or an aggregate price of approximately RUR4.18 billion. The tender offer will be valid until May 29, 2007. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. ===================== N E T H E R L A N D S ===================== X5 RETAIL: Acquires 144 Delivery Trucks from Scania AB ------------------------------------------------------ X5 Retail Group N.V. has purchased 144 delivery trucks from Scania AB to service additional shops across Russia, various reports say. X5 will receive the two-axle local delivery trucks in April 2007, Reuters reports. The company has been propping up its delivery fleet with Scania trucks, and previously ordered around 100 trucks from the Swedish truck-maker. "X5 Retail Group plans to open shops in most large cities in Russia and is choosing Scania because we both have trucks with low operating costs and a well-developed service network," Raimo Lehtioe, Managing Director of Scania Russia, told The Auto Channel. Scania said in a statement the order consolidated its position as the largest western European make in the fast-growing market. Leif Oestling, Scania's CEO, told Bloomberg News that he considers the Russian market a source of future growth for the truck-maker. Scania, which controls around a third of the Russia truck market, plans to add more service dealerships in the country on top of 30 existing ones. About X5 Retail Headquartered in the Netherlands, X5 Retail Group N.V. (fka Pyaterochka Holding N.V.) (LSE: FIVE) -- http://www.5chka.com/ -- operates a large store network largely covering the Moscow region and St. Petersburg but also has a good presence in other Russian regions through its franchise operations. The company has recently acquired two of its successful regional franchise operations -- in Yekaterinburg and Chelyabinsk. * * * As of Feb. 15, Pyaterochka Holding's Long-Term Corporate Family Rating carries Moody's B1 rating with a stable outlook. The company's Long-Term Foreign Issuer Credit Rating and Long- Term Local Issuer Credit Rating carry Standard & Poor's BB- rating with a negative Outlook. ============= R O M A N I A ============= CFR MARFA: Moody's Assigns Ba2 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service assigned a Ba2 Corporate Family Rating to CFR Marfa S.A. Concurrently, Moody's affirmed the Ba2 Senior Unsecured Debt rating, currently assigned to the Company's EUR120 million Eurobond issuance due by December 2007 in the context of the implementation of its Loss Given Default methodology for European corporates from March 19, 2007. The outlook on CFR Marfa's ratings remains negative. In accordance with Moody's GRI rating methodology, the Corporate Family Rating of CFR Marfa reflects the combination of the following inputs: -- Baseline credit assessment of 17 (on a scale of 1 to 21 where 1 represents lowest credit risk) -- Baa3 local currency rating of the Romanian government -- High dependence -- High support CFR Marfa S.A., headquartered in Bucharest, is the national company for freight railway transport in Romania. In 2005 the Company had total revenues for ROL1.7 billion. =========== R U S S I A =========== AVTOGAS OJSC: Creditors Must File Claims by May 3 ------------------------------------------------- Creditors of OJSC Avtogas have until May 3 to submit proofs of claim to: A. Lantsov, Insolvency Manager Post User Box 58 121614 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-40-18200/06-123-183B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Avtogas Dmitrovskoye Shosse 131 127247 Moscow Russia BALT OIL: Kareliya Court Names Y. Ponomarev to Manage Assets ------------------------------------------------------------ The Arbitration Court of Kareliya appointed Mr. Y. Ponomarev as Insolvency Manager for LLC Balt Oil. He can be reached at: Y. Ponomarev Krasnoflotskaya Str. 37-78 Petrozavodsk 185001 Kareliya Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A26-9084/2006-182. The Court is located at: The Arbitration Court of Kareliya Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Russia The Debtor can be reached at: Y. Ponomarev Krasnoflotskaya Str. 37-78 Petrozavodsk 185001 Kareliya Russia BUZULUKSKIY: Creditors Must File Claims by April 3 -------------------------------------------------- Creditors of Municipal Unitary Enterprise Vegetable Tinned Factory Buzulukskiy (TIN 5603002134, KPP 560301001) have until April 3 to submit proofs of claim to: V. Gorbunov, Insolvency Manager Gaya Str. 23a 460000 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-10198/06-14 GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: Municipal Unitary Enterprise Vegetable Tinned Factory Buzulukskiy Moskovskaya Str. 10 Buzuluk 461040 Orenburg Russia DOBRINKA OJSC: Orenburg Bankruptcy Hearing Slated for May 23 ------------------------------------------------------------ The Arbitration Court of Orenburg will convene at 9:00 a.m. on May 23 to hear the bankruptcy supervision procedure on OJSC Dobrinka. The case is docketed under Case No. A47-600/ 2007-14 GK. The Temporary Insolvency Manager is: V. Gusev Parkovaya Str. 6 Chebenki 460550 Orenburg Russia The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Dobrinka Tsentralnaya Str. 12 Dobrinka Aleksandrovskiy 461835 Orenburg Russia ELRUS CJSC: Court Names P. Tarasov as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Stavropol appointed Mr. P. Tarasov as Insolvency Manager for CJSC Company Elrus. He can be reached at: P. Tarasov Sotsialisticheskaya Str. 60v 344002 Rostov-na-Donu Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-14852/06-S5. The Court is located at: The Arbitration Court of Stavropol Mira Str. 458 b Stavropol Russia The Debtor can be reached at: CJSC Company Elrus 1st location 17 Budennovsk Russia EQUIPMENT AND INVESTMENT: Creditors Must File Claims by April 3 --------------------------------------------------------------- Creditors of LLC Equipment and Investment have until April 3 to submit proofs of claim to: P. Tarasov, Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-36856/2006. The Court is located at: The Arbitration Court of St. Petersburg and Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Equipment and Investment Building 1 Vitebskiy Pr. 41 St. Petersburg Russia EUROCHEM MINERAL: Scraps Initial Public Offering Plans for 2007 --------------------------------------------------------------- OJSC EuroChem Mineral and Chemical Co. will not hold an initial public offering this year, RIA Novosti reports citing general director Dmitry Strezhnev. EuroChem had planned to raise around US$400 million from issuing 15% of its total shares via a public placement in March and April 2007, RIA Novosti relates. Mr. Strezhnev said the IPO was scrapped, as it is not a company priority. "In our segment of the market, we intend to keep the profitability positions and also join the group of the top five producers in terms of production volume," Mr. Strezhnev said. "These are the company's guidelines within its aggressive development strategy." RIA Novosti suggests that Russian firms like Eurochem are believed to be heavily undercapitalized and are looking for funds to compete with Western rivals. In a TCR-Europe report on March 14, EuroChem is issuing US$300 million in bonds to foreign investors to finance the company's expansion and development plans. EuroChem intends to invest US$1.5 billion over the next five years to develop the Gremyachenskoye potash field. It also plans to upgrade its fleet of rail cars and its other businesses. Citigroup Inc., UBS AG and ING Groep N.V. serve as the deal's sale managers. About EuroChem Headquartered in Moscow, Russia, OJSC EuroChem Mineral and Chemical Company -- http://www.eurochem.ru/-- engages in raw materials extraction, and production of fertilizers, organics, feed phosphates in Russia and abroad. * * * Fitch Ratings assigned Russia-based OJSC EuroChem Mineral and Chemical Company an Issuer Default 'BB-' (BB minus) rating and a Short-term 'B' rating. The Outlook on the Issuer Default rating is Stable. EVRAZ GROUP: Launches Offer to Buy Out NTMK Minority Stake ---------------------------------------------------------- Mastercroft Ltd., a wholly owned subsidiary of Evraz Group S.A., has commenced a cash tender offer to purchase around 5% of the Nizhny Tagil Iron and Steel Plant (NTMK) outstanding shares. At the moment Mastercroft Limited holds 94.997% of NTMK share capital, and is making an offer to NTMK's minority shareholders to tender the remaining 5.003187% of NTMK's outstanding common stock for a cash consideration of RUR63.72 per share or an aggregate price of approximately RUR4.18 billion. The tender offer will be valid until May 29, 2007. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Evraz Group's 8-1/4% notes due November 2015 has been given by Moody's Investors Service's (P)B2 rating, Standard & Poor's B+ rating and Fitch's BB- rating. KAMNESTROY CJSC: Creditors Must File Claims by April 3 ------------------------------------------------------ Creditors of CJSC Kamnestroy have until April 3 to submit proofs of claim to: A. Larina, Insolvency Manager Komsomolskiy Pr. 33-40 454126 Chelyabinsk Russia The Arbitration Court Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-5862/2006-32-14. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: CJSC Kamnestroy Turgoyakskoye Shosse 7 Miass 456313 Chelyabinsk Russia LOYUN CJSC: Creditors Must File Claims by April 3 ------------------------------------------------- Creditors of CJSC Industrial Financial Company Loyun have until April 3 to submit proofs of claim to: P. Tarasov, Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-33317/2006. The Court is located at: The Arbitration Court of St. Petersburg and Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Industrial Financial Company Loyun Bolshoy Pr. V.O. 55 a St. Petersburg Russia LUKOIL OAO: Inks Four-Year Cooperation Agreement with GAZ Group --------------------------------------------------------------- Vladimir Nekrasov, First Vice-President of OAO Lukoil, and Erik Eberhardson, CEO of OOO GAZ Group, have signed a cooperation agreement for 2007-2010. Among other things, the agreement stipulates that LUKOIL branded lubricants will be used for the first filling of GAZ automobiles. Under the agreement, the lubricants will become part of the engineering and design documentation. The parties also plan to step up cooperation in developing and certifying new types of motor, transmission and industrial oil to produce equipment for automobile assembly plants. GAZ Group will recommend Lukoil branded lubricants to service stations and GAZ automobiles owners. OOO LLK-International, a 100% OAO Lukoil subsidiary, will provide GAZ Group with systematic supplies of high quality lubricants to automobile assembly plants and service stations, and guarantee failure-free operation of conveyor, production equipment and service centers. OOO LLK-International also committed itself to conducting research and development based on its scientific engineering potential, to creating prospective types of lubricants for automotive vehicles and production equipment. OOO LLK-International will also start manufacturing GAZ branded motor oil, making GAZ Group exclusive supplier of the lubricants. "The agreement with GAZ Group is an important step in development of LUKOIL's 'lubricant business', as it will help expand our product sales market, and give a boost to our programs on developing new types of high quality lubricants," said Vladimir Nekrasov, OAO LUKOIL First Vice-President. For instance, one of the recent projects in this line of the Company's business was to develop and launch production of a special lubricant for General Electric, diesel locomotive engines. Lukoil has already signed similar agreements with OAO Avtovaz, OAO Agromashholding and a number of other large Russian lubricant consumers. 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. * * * OAO Lukoil carries Standard & Poor's BB+ long-term foreign and local issuer credit ratings with a positive outlook. MOBILE TELESYSTEMS: Earns US$1.25 Billion for Full Year 2006 ------------------------------------------------------------ Mobile TeleSystems OJSC released its consolidated financial results for the full year 2006, prepared according to U.S. Generally Accepted Accounting Principles. In 2006, MTS posted a 10.6% hike in profit to US$1.25 billion, and a 27.4% increase in revenues to US$6.38 billion. The company also registered a 30.7% rise in operating profit to US$2.13 billion. Leonid Melamed, MTS president, told RIA Novosti that the company will pay US$576 million in dividends. He noted that MTS has a policy of paying dividends equivalent to half of its U.S. GAAP net profit Mr. Melamed attributed the hike in net profit to its American Depositary Receipt repurchase program, which started in August 2006. The president said the program is aimed at: -- gaining profit from buying MTS shares at low prices and then reselling them; -- using the ADRs for merger and takeover deals; and -- using the ADRs for borrowing operations. The repurchase program sets a 10% limit on all issued MTS shares and assigns the company's Mobile TeleSystems Bermuda Ltd. unit to repurchase the ADRs. Mr. Melamed told RIA Novosti that in 2006, MTS had bought 2,232,200 of its ADRs worth US$109.9 million. About MTS Headquartered in Moscow, Russia, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 61.77 million subscribers. The regions of Russia, as well as Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of approximately 233.1 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange. * * * As of Dec. 31, 2005, MTS had a working capital deficit of US$631.6 million, compared with a US$189 million working capital deficit at Dec. 31, 2004. MTS is rated to BB-/outlook stable by Standard & Poor's and Ba3/outlook stable by Moody's. NADEZHDA OJSC: Creditors Must File Claims by April 3 ---------------------------------------------------- Creditors of OJSC Nadezhda have until April 3 to submit proofs of claim to: V. Golovach, Temporary Insolvency Manager Post User Box 2/2 Salekhard 629003 Yamalo-Nenetskiy Russia The Arbitration Court of Yamalo-Nenetskiy commenced bankruptcy supervision procedure on the company. The hearing in the Court will convene at 9:00 a.m. The case is docketed under Case No. A81-4939/2006. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Russia The Debtor can be reached at: OJSC Nadezhda Respubliki Str. 9 Salekhard 629008 Yamalo-Nenetskiy Russia PECHOR-MOR-OIL: Creditors Must File Claims by April 3 ----------------------------------------------------- Creditors of OJSC Pechor-Mor-Oil (TIN 8300120060) have until April 3 to submit proofs of claim to: A. Gorelov, Temporary Insolvency Manager Naberezhnaya Str. 11 Kolskiy 184366 Murmansk Russia The Arbitration Court of Murmansk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A42-8296/2006. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: OJSC Pechor-Mor-Oil Office 302 K. Marksa Str. 19 Murmansk Russia PULSE LLC: Creditors Must File Claims by April 3 ------------------------------------------------ Creditors of LLC Pulse have until April 3 to submit proofs of claim to: N. Zakharov, Temporary Insolvency Manager Post User Box 109 390044 Ryazan Russia The Arbitration Court of Ryazan commenced bankruptcy supervision procedure on the company. The hearing in the Court will convene at 12:30 p.m. on May 29. The case is docketed under Case No. A54-5221/2006-S20. The Court is located at: The Arbitration Court of Ryazan Pochtovaya Str. 43/44 Ryazan Russia The Debtor can be reached at: LLC Pulse 50 Let Oktyabrya Str. 1 Sapozhok 391940 Ryazan Russia ROSNEFT OIL: Board Approves US$22-Billion Loan for Yukos Bid ------------------------------------------------------------ The Board of Directors of OAO Rosneft Oil Co. has approved major transactions in connection with the Company signing a loan for up to US$13 billion and providing a guarantee for RN-Razvitiye, which is signing a loan for up to US$9 billion. Rosneft indirectly holds 100% of the capital in RN-Razvitiye through subsidiaries. The loans for US$13 billion and US$9 billion were arranged by ABN AMRO, Barclays, BNP Paribas, Calyon, Citibank, Goldman Sachs, J.P. Morgan Chase and Morgan Stanley and have final maturities of up to 12 and up to 18 months respectively. The interest rates on both loans are LIBOR +0.25%-0.5%, depending on the final redemption date. Both the size and the terms of the loans are unprecedented for a borrower on the Russian market. Rosneft has secured the loans in order to finance potential acquisitions of core assets in the Russian Federation and abroad, including YUKOS' assets to be sold at upcoming auctions. The loans are fully compliant with Rosneft's existing liabilities and will not result in the violation of any previously agreed covenants. Following any acquisitions, Rosneft intends to repay, extend or refinance the loans via longer-term instruments, which, together with anticipated pro forma cash flows, will enable Rosneft to further improve its credit profile. RN-Razvitiye has already requested approval from Russia's Federal Anti-Monopoly Service for Rosneft to acquire 1 billion ordinary Rosneft's shares, owned by Yukos, to be sold as part of the bankruptcy proceedings. 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. ROSNEFT: Fitch's BB+ Rating Incorporates Planned US22-Bln Loan -------------------------------------------------------------- Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. While the total borrowing size seems large upon initial examination, Fitch expects the overall impact on Rosneft's financial profile and credit ratios to be minimal after incorporating cash flow from potentially acquired downstream assets, receipt of US$10 billion as a creditor to Yuganskneftegaz, and possible re-sale of a 9.4% stake in the company that will be auctioned off under bankruptcy proceedings starting March 27. Any share re-sale could be used to settle the US$9bn loan while receipt of the above noted US$10 billion as a creditor to Yuganskneftegaz could be used to partially offset the US$13 billion loan. Depending on the degree to which funds are utilized, Fitch expects the company's credit ratios to stay the same or improve. In December 2006, Fitch placed Rosneft on Rating Watch Positive on expectations that the company will further enhance both its downstream integration and upstream oil and gas production in 2007. The agency views that acquiring downstream assets will benefit Rosneft's business profile by making it more fully integrated and allow it to compete more effectively with similarly structured peers whose downstream presence in the Russian Federation is currently larger. In addition, Fitch expects the company to favorably resolve issues concerning its relatively high debt levels, which will positively influence its leverage and coverage ratios during the course of the year. SARAEVSKIY BUTTER: Court Names M. Kuvshinova to Manage Assets ------------------------------------------------------------- The Arbitration Court of Ryazan appointed Ms. M. Kuvshinova as Insolvency Manager for OJSC Saraevskiy Butter Factory. She can be reached at: M. Kuvshinova Rakhmaninova Str. 1 Penza Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-5316/2006. The Court is located at: The Arbitration Court of Ryazan Pochtovaya Str. 43/44 Ryazan Russia The Debtor can be reached at: M. Kuvshinova Rakhmaninova Str. 1 Penza Russia SEV-ZAP-MILK-AGRO: Creditors Must File Claims by April 3 -------------------------------------------------------- Creditors of LLC Sev-Zap-Milk-Agro have until April 3 to submit proofs of claim to: F. Sarvarov, Temporary Insolvency Manager Post User Box 204 197372 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy supervision procedure on LLC Sev-Zap-Milk-Agro. The case is docketed under Case No. A56-32810/2006. The Court is located at: The Arbitration Court of St. Petersburg and Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Sev-Zap-Milk-Agro Vyborgskaya Quay 43 194044 St. Petersburg Russia SOUTHERN TELECOMMUNICATIONS: Court Postpones Tax Claim Hearing -------------------------------------------------------------- The Moscow Arbitration Court has suspended the hearing of a case regarding the claim of Southern Telecommunications Co. PJSC (UTK) against the decision of tax bodies. On March 5, the court commenced the hearing of the case related to UTK's claim contesting the Decision of Russia's Inter- regional Tax Inspectorate No. 7 regarding a back-tax claim it issued to the company. As a result, the court postponed the hearing of the case until the Court decisions on two similar cases came into force, as those decisions were of a prejudicial character for the case. Besides, the Moscow Arbitration Court wanted the judicial practice regarding such cases to be uniform. About the Company Headquartered in Krasnodar, Russia, Southern Telecommunications Co. PJSC -- http://www.stcompany.ru/-- provides local, long- distance, and cellular telephone, paging and telegraph services. * * * As of March 7, UTK carries these ratings: Moody's -- Issuer: Caa1 -- Long-Term Corporate Family: B3 -- Outlook: Stable Standard & Poor's -- Long-Term Foreign Issuer Credit: B- -- Long-Term Local Issuer Credit: B- -- Outlook: Stable TORG-FINANCE-STROY++: Creditors Must File Claims by April 3 ----------------------------------------------------------- Creditors of CJSC Torg-Finance-Stroy++ have until April 3 to submit proofs of claim to: I. Nikitina, Insolvency Manager Mira Pr. 101V 179085 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The hearing in the Court will convene on June 20. The case is docketed under Case No. A40-33239/06-123-433B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Torg-Finance-Stroy++ Building 1 Krasnyj Kazanets Str. 19 111395 Moscow Russia VIMPEL-COMMUNICATIONS: Alfa Group Raises Stake to 42.4% ------------------------------------------------------- Alfa Group, through its Altimo Telecoms investment vehicle, has increased its stake in OJSC Vimpel-Communications to 42.4%, Bloomberg News reports. Alfa hiked its stake by acquiring 4.92 million Vimpelcom American Depositary Receipts on March 20, Bloomberg News relates. The firm earlier paid US$618 million for 6.76 million Vimpelcom ADRs between March 15 and March 20. The acquisition was part of Alfa's strategy to outdo fellow shareholder Telenor ASA, which holds a 26.6% stake, in taking control of the company, Bloomberg News adds. Both Alfa and Telenor applied with the Russian Federal Anti-Monopoly Service to get a controlling stake in Vimpelcom. Both firms are fighting a legal battle over Vimpelcom's expansion in Ukraine, where they also own telecommunication assets. Anna Ivanova-Galitsina, a spokeswoman for Telenor, told Bloomberg News that Alfa will not get additional rights from the increased holdings. Alfa, however, may nominate an additional board member if its stake in Vimpelcom exceeds 44%. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As reported in the TCR-Europe on Oct. 12, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. YUKOS OIL: Court Voids PwC Audit Contract; Firm Set to Appeal ------------------------------------------------------------- The Moscow Arbitration Court invalidated Tuesday a contract between OAO Yukos Oil Co. and the Russian branch of UK-based PricewaterhouseCoopers, in relation to the firm's auditing of Yukos' financials in 2002-2004, published reports say. PwC was also ordered to pay RUR16.8 million (US$645 million) to the state, which includes a US$145 million repayment from PwC on the cost of the contract. PwC said it intends to appeal the case to the Supreme Arbitration Court after losing three appeals in civil courts. "We regret this decision by the court," PwC said in a statement. "We believe the claim has no legal merits and is based on a fundamental misunderstanding of the role and functions of the auditor." The Federal Tax Service of Russia had accused PwC of covering up Yukos's alleged illegal financial schemes and compiling two different audits -- one for internal use and another for shareholders. The auditing firm has denied the allegation that it had concealed tax evasion activities by Yukos in its audit. The firm, however, confirmed that it had produced two reports for Yukos but said this was normal professional practice, The Moscow Times relates. "Russian law is a pretty complex animal," Ronald Nash, head of research at Renaissance Capital, told the paper. "The question is how the law is being interpreted in this case by the parties involved." Back-Tax Claim Representatives of the Russian Ministry of Internal Affairs and Prosecutor General's Office seized documents from PwC's Moscow office on March 9 relating to a separate tax-evasion probe against the auditing firm. The authorities had accused PwC of evading up to RUR243 million (US$9.3 million) in taxes in 2002 on its manager's orders. However, PwC claimed that the Internal Affairs Ministry took into their possession paper files and electronic records not limited to the period of 2002, and which in the view of PwC, goes well beyond the scope of the tax claim. "PwC strongly objects to the seizure of such information and has engaged legal counsel to ensure that applicable laws pertaining to the release of seized documents are respected and that all documents unrelated to the cases in question are promptly returned to PwC," the firm said. "PwC strongly denies any wrongdoing in either the 2002 tax case or in relation to its audits, and continues to work to resolve both matters." According to RIA Novosti, Russian tax regulators suspected PwC's Moscow branch of under-reporting profit tax on sums it allegedly paid to PricewaterhouseCoopers Resources B.V. The offshore company was supposed to provide financial consultations to clients in Russia, but the Moscow branch provided these services instead, RIA relates. About PwC PricewaterhouseCoopers -- http://www.pwc.com/-- is the leading professional services organization in the world, ranking first or second in every market it operates. It has established offices in Moscow, St. Petersburg, Yuzhno-Sakhalinsk and Togliatti. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ========= S P A I N ========= DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit ---------------------------------------------------------- Delphi Corporation intends to shut down a chassis and steering products manufacturing facility in Cadiz, Spain, with the loss of about 1,600 workers. Since the company disclosed the closure, workers and their families have rallied in protest almost everyday, receiving extensive media coverage in Spain, Reuters reports. In a regulatory filing with the U.S. Securities and Exchange Commission, Thomas S. Timko, chief accounting officer and controller of Delphi Corp., explains that the Cadiz Facility Closure is consistent with: -- Delphi's overall transformation plan and decisions to close or sell facilities manufacturing non-core products; and -- Delphi's efforts to optimize its manufacturing footprint in order to lower its overall cost structure. The Cadiz Facility is the primary asset of Delphi's indirect wholly owned Spanish subsidiary Delphi Automotive Systems Espana, S.L. Mr. Timko notes that Delphi previously recorded long-lived asset impairments for the Facility in the fourth quarter of 2005 but does not expect to incur significant future impairments. Mr. Timko relates that Delphi could incur costs for the Closure based upon the outcome of its negotiations with the unions representing the Cadiz Facility Employees. Delphi estimates its costs to be around US$70,000,000 although the exact amount cannot be ascertained pending the resolution of DAS Espana's recent bankruptcy filing. Concurso Filing DAS Espana filed a petition for Concurso, or bankruptcy, under Spanish law, on March 20, with the approval of Delphi's Board of Directors. Delphi has informed the Spanish Court and the Cadiz Facility Employees that it would voluntarily provide funds sufficient to satisfy the separation allowance to which the Employees are entitled under applicable Spanish law, Mr. Timko says. Delphi cautions that its ability to commit to fund any severance-related payments and other closure charges in excess of the legally required minimum, depending on the amount, may be subject to the approval of the Bankruptcy Court. About Delphi Corporation Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. ===================== S W I T Z E R L A N D ===================== AGTEN JSC: Creditors' Liquidation Claims Due April 10 ----------------------------------------------------- Creditors of JSC Agten have until April 10 to submit their claims to: Klaus Agten Liquidator 3993 Grengiols Raron VS Switzerland The Debtor can be reached at: JSC Agten Grengiols Raron VS Switzerland CS CONSULTING: Claims Registration Period Ends April 3 ------------------------------------------------------ The Bankruptcy Court of Aargau commenced bankruptcy proceedings against JSC CS Consulting Partner on Jan. 29, 2006. Creditors have until April 3 to file their written proofs of claim. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Oberentfelden 5036 Oberentfelden Aarau AG Switzerland The Debtor can be reached at: JSC CS Consulting Partner Frikartstrasse 2 4800 Zofingen AG Switzerland EISBALL CONSULTING: Claims Registration Period Ends April 3 ----------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC Eisball Consulting on Feb. 21, 2006. Creditors have until April 3 to file their written proofs of claim. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Oberentfelden 5036 Oberentfelden Aarau AG Switzerland The Debtor can be reached at: LLC Eisball Consulting Alter Salzhofweg 12 5034 Suhr Aarau AG Switzerland HOTEL BAREN: Waldenburg Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Waldenburg commenced bankruptcy proceedings against JSC Hotel Baren Langenbruck on Feb. 12. The Bankruptcy Service of Waldenburg can be reached at: Bankruptcy Service of Waldenburg 4437 Waldenburg BL Switzerland The Debtor can be reached at: JSC Hotel Baren Langenbruck Hauptstrasse 10 4438 Langenbruck Waldenburg BL Switzerland INTER ATLANTIK: Creditors' Liquidation Claims Due March 31 ---------------------------------------------------------- Creditors of JSC Inter Atlantik Immobilien have until March 31 to submit their claims to: JSC Saxer Treuhand AG Liquidator Zurcherstrasse 23 P.O. Box: 2118 5402 Baden AG Switzerland The Debtor can be reached at: JSC Inter Atlantik Immobilien Baden AG Switzerland NETWAY SOLUTIONS: Claims Registration Period Ends April 2 --------------------------------------------------------- The Bankruptcy Court of Binningen commenced bankruptcy proceedings against JSC Netway Solutions on Feb. 22, 2006. Creditors have until April 2 to file their written proofs of claim. The Bankruptcy Service of Binningen can be reached at: Bankruptcy Service of Binningen 4102 Binningen Arlesheim BL Switzerland The Debtor can be reached at: JSC Netway Solutions Kagenstrasse 17 4153 Reinach BL Switzerland PETER RYTZ: Creditors' Liquidation Claims Due April 10 ------------------------------------------------------ Creditors of LLC Peter Rytz have until April 10 to submit their claims to: Gletscherstrasse 10 8008 Zurich Switzerland The Debtor can be reached at: LLC Peter Rytz Zurich Switzerland TRYDEX JSC: Creditors' Liquidation Claims Due April 2 ----------------------------------------------------- Creditors of JSC Trydex have until April 2 to submit their claims to: ABT Treuhandgesellschaft Andreas Baumann & Co. Liquidator Alte Steinhauserstrasse 1 6330 Cham ZG Switzerland The Debtor can be reached at: JSC Trydex Cham ZG Switzerland TSUFA JSC: Creditors' Liquidation Claims Due April 5 ---------------------------------------------------- Creditors of JSC Tsufa have until April 5 to submit their claims to: Francis Perrenoud Liquidator JSC RD Tevision - und Treuhand Ringstrasse 9 4123 Allschwil Arlesheim BL Switzerland The Debtor can be reached at: JSC Tsufa Allschwil Arlesheim BL Switzerland XMM EXECUTIVE: Creditors' Liquidation Claims Due April 10 --------------------------------------------------------- Creditors of LLC XMM executive management + marketing have until April 10 to submit their claims to: Heinz Nievergelt Liquidator Bergstrasse 28 8810 Horgen Switzerland The Debtor can be reached at: LLC XMM executive management + marketing Zug Switzerland ============= U K R A I N E ============= ADAMPOL BREAD: Bar Date for Submission of Claims Set March 25 ------------------------------------------------------------- The Economic Court of Vinnica commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 5/3/165-B. Creditors of CJSC Adampol Bread Combine (code EDRPOU 32430583) have until March 25 to submit written proofs of claim to: Andrew Nadtonok, Temporary Insolvency Manager Zubrovskaya Str. 25-a 79066 Lvov Ukraine The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Debtor can be reached at: CJSC Adampol Bread Combine Pirogov Str. 115 21037 Vinnica Ukraine ADGEZIV LLC: Creditors Must File Proofs of Claim by March 25 ------------------------------------------------------------ Creditors of LLC Science-Engineering Center Adgeziv (code EDRPOU 01497391) have until March 25 to submit written proofs of claim to: A. Migulev, Liquidator Livarnaya Str. 13 49000 Dniepropetrovsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 43/321. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Science-Engineering Center Adgeziv Sosiura Str. 5 02090 Kiev Ukraine AFT LTD: Bar Date for Submission of Claims Set March 24 ------------------------------------------------------- Creditors of LLC AFT Ltd. (code EDRPOU 32228853) have until March 24 to submit written proofs of claim to: Viacheslav Drumiretsky, Temporary Insolvency Manager Morehodnaya Str. 14, of. 209 54010 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 2/18/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC AFT Ltd. Lenin Avenue 71 54017 Nikolaev Ukraine AMBASSADOR INTERNATIONAL: Creditors Must File Claims by March 25 ---------------------------------------------------------------- Creditors of LLC Ambassador International Ukraine (code EDRPOU 25410868) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/869-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Ambassador International Ukraine Transheynaya Str. 1 03069 Kiev Ukraine AZOVSERVICE LLC: Creditors Must File Proofs of Claim by March 25 ---------------------------------------------------------------- Creditors of LLC Azovservice (code EDRPOU 31508281) have until March 25 to submit written proofs of claim to: Natalie Martynenko, Liquidator Mayakovsky Avenue 12 69035 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/42/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Azovservice Tiulenin Str. 23 69001 Zaporozhje Ukraine BALANOVKA AGRICULTURAL: Creditors Must File Claims by March 24 -------------------------------------------------------------- Creditors of LLC Balanovka Agricultural Firm (code EDRPOU 03733594) have until March 24 to submit written proofs of claim to: Sergey Boyko, Liquidator Kozytsky Str. 46 21050 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/7-07. The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Debtor can be reached at: LLC Balanovka Agricultural Firm Lenin Str. 2 Balanovka Bershadsky District 24413 Vinnica Ukraine CREDIT DNEPR: Moody's Puts B3 Rating to Senior Unsecured Debt ------------------------------------------------------------- Moody's Investors Service assigned a B3 long-term senior unsecured debt rating as well as a Baa3.ua national scale rating to the UAH-denominated bonds to be issued by Credit-Dnepr Bank, which will represent a senior unsecured claim on the bank. The planned issue size is UAH100 million (approximately US$20 million) with a maturity of three years. The outlook on the B3 global scale rating is stable, while the bank's NSR carries no specific outlook. According to Moody's, the B3 global scale local currency rating reflects global default and loss expectation and is not constrained by any foreign currency transfer risk, while the Baa3.ua national scale rating reflects the standing of the bank's credit quality relative to its domestic peers. Moody's B3 rating for the bonds is based on Credit Dnepr Bank's fundamental credit quality and factors in its ability to fulfill its long-term obligations, including those associated with the put option that the bondholders will, according to the terms of the issue, be able to exercise in order to sell the bonds back to the bank on the first and second anniversaries of the issue. Moody's notes that if the bank's credit quality were to deteriorate at these times, exercise of the put options might exert additional pressure on its financial condition. Moody's also notes that although part of the issue in the amount of UAH30 million will be covered by the corporate guarantee of the bank's related party, lack of information on the credit standing of the related-party company does not allow the guarantee to be factored into the bond's ratings. The bank's obligations under the bonds will rank at least pari passu in right of payment with all other unsecured and unsubordinated obligations, except as otherwise provided by mandatory provisions of applicable law. Moody's notes that Ukraine is in general, a country with individual depositor preference, which may reduce the recovery rates for the bondholders, especially if such deposits were to represent a sizeable proportion of the bank's liabilities in the event of liquidation. Headquartered in Dnepropetrovsk, Ukraine, Credit Dnepr Bank reported total assets of UAH1.4 billion (US$285.8 million) under IFRS as of Dec. 31, 2006 and net income of UAH64.4 million (US$12.7 million). DIKOM-AUDIT LLC: Creditors Must File Proofs of Claim by March 25 ---------------------------------------------------------------- Creditors of LLC Audit Firm Dikom-Audit (code EDRPOU 20348722) have until March 25 to submit written proofs of claim to: Tamara Zhevneva, Liquidator Koval Str. 84, ap. 46 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 27/115B. The Court is located at: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Audit Firm Dikom-Audit Ilyich Avenue 89 83003 Donetsk Ukraine DIVO LLC: Creditors Must File Proofs of Claim by March 25 --------------------------------------------------------- Creditors of LLC Divo (code EDRPOU 30301412) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District, Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/733-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Divo Vozduhoflotsky Avenue 52 03151 Kiev Ukraine DNIPROMLYN OJSC: Court Appoints Y. Arkina as Bankruptcy Trustee --------------------------------------------------------------- The Economic Court of Dnipropetrovsk has initiated bankruptcy proceedings on OJSC Dnipromlyn this month and appointed arbitration manager Yelizaveta Arkina as bankruptcy trustee, Interfax reports. Commencement of the bankruptcy case was published on March 15 and creditors' claims will be accepted within a month from the date when the publication was made, Interfax states. According to the release, the State Commission for Securities and the Stock Market disclosed that the major stockholders of Dnipromlyn were Prydniprovska Agrarian Group Ltd. (23.4%), Zolodar private enterprise (20.6%), OJSC YUM PLUS (22%), and Science and Production Company Ltd. (22%) as of May 2006. About Dnipromlyn Headquartered in Dnipropetrovsk, Ukraine, OJSC Dnipromlyn was a large grain processing enterprise that produced flour and bread and was considered to be one of the country's major businesses. MABUD LTD: Creditors Must File Proofs of Claim by March 25 ---------------------------------------------------------- Creditors of LLC Mabud Ltd. (code EDRPOU 20023820) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/617-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Mabud Ltd. Vinnica Str. 14/39 03151 Kiev Ukraine OLENA MARKANTONI: Creditors Must File Claims by March 25 -------------------------------------------------------- Creditors of LLC Olena Markantoni (code EDRPOU 32978027) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/11-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Olena Markantoni Solomenskaya Str. 20 03110 Kiev Ukraine POKROVA LLC: Creditors Must File Proofs of Claim by March 25 ------------------------------------------------------------ Creditors of LLC Pokrova (code EDRPOU 31849805) have until March 25 to submit written proofs of claim to: A. Malevany Liquidator Kharkov Str. 122 40012 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/379-06. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: LLC Pokrova Krasnopolye District Pokrovka, Sovetskaya str. 42437 Sumy Ukraine PROMZONA LLC: Creditors Must File Proofs of Claim by March 25 ------------------------------------------------------------- Creditors of LLC Promzona (code EDRPOU 30785222) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/11-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Promzona People's Volunteer Corps Str. 1 03151 Kiev Ukraine REGIONAL AGRICULTURAL: Creditors Must File Claims by March 25 ------------------------------------------------------------- Creditors of OJSC Regional Agricultural Technical Service (code EDRPOU 00953220) have until March 25 to submit written proofs of claim to: Mogilev-Podolsky Regional State Tax Inspection Temporary Insolvency Manager Karmeliuk Str. 7/54 Mogilev-Podolsky 24000 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 10/197-06. The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Debtor can be reached at: OJSC Regional Agricultural Technical Service Lesnaya Str. 6-b Vendichany Mogilev-Podolsky District 24032 Vinnica Ukraine TECHNOLOGY LLC: Creditors Must File Proofs of Claim by March 25 --------------------------------------------------------------- Creditors of LLC Technology (code EDRPOU 30746120) have until March 25 to submit written proofs of claim to: Leonid Talan Liquidator a/b 158 49000 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 24/203-06. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Technology Plehanov Str. 7a 49006 Dnipropetrovsk Ukraine TIREX LLC: Creditors Must File Proofs of Claim by March 25 ---------------------------------------------------------- Creditors of LLC Tirex (code EDRPOU 31114874) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/52-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Tirex Metalistov Str. 17 03057 Kiev Ukraine TRUCK LLC: Creditors Must File Proofs of Claim by March 25 ---------------------------------------------------------- Creditors of LLC Truck (code EDRPOU 31085943) have until March 25 to submit written proofs of claim to: State Tax Inspection in Solomenka District Liquidator Smilianskaya Str. 6 03151 Kiev Ukraine The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Truck Mishyn Str. 25 03151 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANCED MARKETING: Baker & Taylor Completes Asset Purchase ----------------------------------------------------------- Baker & Taylor, Inc. has completed the acquisition of the wholesale operations of Advanced Marketing Services Inc. Advanced Marketing has been in proceedings under Chapter 11 of the Bankruptcy Code since Dec. 29, 2006. The U.S. Bankruptcy Court in Wilmington, Delaware, approved the transaction on March 9. Baker & Taylor's acquisition includes Advanced Marketing assets through which it distributes bestsellers, children's books, culinary titles, reference works, and other books to membership warehouse clubs. Baker & Taylor also acquired Advanced Marketing's wholesale distribution operations in the United Kingdom and in Mexico. Baker & Taylor said it would operate the warehouse club business under a new brand, Baker & Taylor Marketing Services, and resume full shipping operations to the warehouse clubs on March 19. Richard Willis, Baker & Taylor's chairman and chief executive officer, observes that Advanced Marketing had been the dominant wholesale book club distributor for over 20 years. "The Advanced Marketing acquisition is a perfect fit with Baker & Taylor and gives us a formidable presence in this industry," Mr. Willis noted. "At Baker & Taylor," Mr. Willis said, "we have built the world's largest book wholesaler by focusing on the needs of our customers. Advanced Marketing's employees have shown the same dedication and passion for their customers, and we are pleased to be able to give them the opportunity to continue to grow their business." Baker & Taylor, founded in 1828, is based in Charlotte, North Carolina. Advanced Marketing's headquarters is in San Diego, California. Baker & Taylor Marketing Services will continue to keep its primary office in San Diego and operate warehouses in Indianapolis, Indiana and Sacramento, California. About Baker & Taylor Baker & Taylor is a portfolio company of Castle Harlan Partners IV, L.P., an investment fund organized and managed by Castle Harlan, Inc., a private equity firm based in New York. Castle Harlan acquired Baker & Taylor last summer. Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 20 investment professionals has completed 48 acquisitions since its inception with a total value in excess of US$9 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s. Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; RathGibson, a leader in the manufacture of stainless steel and high alloy precision-welded tubing, and Perkins & Marie Callender's, Inc., which operates and franchises 618 family restaurants in the United States and Canada. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. ADVANCED MARKETING: C. Smith Succeeds G. Rautenstrauch as CEO ------------------------------------------------------------- Advanced Marketing Services Inc. has appointed Curtis R. Smith, the company's executive vice president and chief financial officer, to succeed former CEO Gary M. Rautenstrauch following the latter's March 21 resignation, the San Diego Business Journal reports. Advanced Marketing has been in proceedings under Chapter 11 of the Bankruptcy Code since Dec. 29, 2006. The U.S. Bankruptcy Court in Wilmington, Delaware, approved the transaction on March 9. Mr. Smith will supervise the final winding-down of the Company's business operations following the completion of the sale of majority of its assets to B&T. Mr. Rautenstrauch will remain as a member of the company's Board of Directors. Mr. Rautenstrauch worked for 22 years at Baker & Taylor, including a stint as chief executive officer of B&T, the Journal relates. According to the report, the former CEO is entitled to get a bonus of up to 70 percent of his salary. U.S. securities filings disclosed that his base salary was $450,000, which pegs his bonus at $315,000. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. ALLERTON DEVELOPMENTS: Names M. S. E. Solomons Liquidator --------------------------------------------------------- M. S. E. Solomons of SPW Poppleton & Appleby was appointed liquidator of Allerton Developments Ltd. on March 5 for the creditors' voluntary winding-up procedure. The company can be reached at: Allerton Developments Ltd. Ballitore Cranes Lane Lathom Ormskirk Lancashire L40 5UJ England Tel: 01695 580 392 ANGLO NATIONWIDE: Appoints Chris Williams to Liquidate Assets ------------------------------------------------------------- Chris Williams of McTear Williams & Wood was appointed liquidator of Anglo Nationwide Carriers Ltd. on March 13 for the creditors' voluntary winding-up proceeding. The company can be reached at: Anglo Nationwide Carriers Ltd. Scope House High Street Bordon Hampshire GU350AY England Tel: 01782 563 322 Fax: 01376 341 708 ANOUSHKA G: Creditors' Meeting Slated for March 28 -------------------------------------------------- Creditors of Anoushka G Retail Ltd. will meet at 12:30 p.m. on March 28 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 have until noon on March 27 to submit their proxy forms together with particulars of their claims or of any security 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 March 26. BOX OFFICE: Brings In M. S. E. Solomons to Liquidate Assets ----------------------------------------------------------- M. S. E. Solomons was appointed liquidator of The Box Office Packaging Ltd. on March 7 for the creditors' voluntary winding- up proceeding. The company can be reached at: The Box Office Packaging Ltd. Cinder Tump Pennywell Lane Littledean Cinderford Gloucestershire GL143JX England Tel: 01594 541 296 BRITISH AIRWAYS: Calls on UK to Sanction US Under Aviation Pact --------------------------------------------------------------- British Airways plc has called on the U.K. government to stand by its right of automatic termination of traffic rights granted in the new air treaty endorsed March 22 between the European Union and US if America drags its feet on negotiating further liberalization. Access to Heathrow for US airlines is at the heart of the new aviation pact signed by European Union Transport Ministers Thursday in Brussels. British Airways chief executive Willie Walsh said, "The EU is naive to believe the US will deliver on the next stage of liberalization without sanctions so we are pleased the U.K. government has recognized this and demanded an automatic termination clause. However, the five-month delay before implementation is unnecessary. "With the EU having given away their most valuable negotiating asset - Heathrow - the U.K. government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalization by 2010. Nothing short of an Open Aviation Area by 2010 will be acceptable and we want talks on the second stage to achieve this to start immediately. "This means delivering a true Open Aviation Area under which airlines from both sides would have free access to each others' market without restrictions and where it will be possible for a US airline to be 100% owned by investors from the EU and vice versa. "A genuine liberalization such as this would deliver huge benefits for customers. "It is disappointing that the EU has missed the opportunity to achieve these long-term gains for customers. Instead, this deal will deliver short-term gains for the subsidized American aviation industry. "So far the US has made no meaningful concessions. American carriers can now fly into Heathrow, Europe and beyond while their own backyard remains a no go area for EU carriers and foreign ownership of their airlines remains unchanged. "We will hold the Government to its word to fight for Britain's interests if America doesn't play ball. Though this is a poor agreement for Britain and Europe, we are ready to exploit the new opportunities this agreement gives us for our customers and our business. Our priority will be to move the Gatwick services to Heathrow that have most connecting traffic, such as the Houston route which serves the oil markets and give our customers the best possible connections." As previously reported in the TCR-Europe on March 6, BA is opposing the "open skies" deal as it may lose its protected flight status at Heathrow airport and face intense competition, according to published reports. About the Company Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. BROTHER 2 BROTHER: Creditors' Meeting Slated for March 29 --------------------------------------------------------- Creditors of Brother 2 Brother Ltd. will meet at 10:15 a.m. on March 29 at: The P&A Partnership 93 Queen Street Sheffield S1 1WF England A list of names and addresses of the company's creditors will be available for inspection between 10:00 a.m. and 4:00 p.m. on March 27. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors, and business advisors. BUDGET CLEANING: Taps Robert Day to Liquidate Assets ---------------------------------------------------- Robert Day of Robert Day and Co. Ltd. was appointed liquidator of Budget Cleaning Ltd. on March 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: Budget Cleaning Ltd. Peartree Cottage Cottered Buntingford Hertfordshire SG9 9PU England Tel: 01763 281 567 CANNOCK GATES: Calls In Administrators from Ernst & Young LLP ------------------------------------------------------------- Ian Best and Chris Marsden of Ernst & Young LLP were appointed joint administrators to Cannock Gates U.K. Ltd. "Originally established in 1983, the company has built a strong reputation for the quality of its handmade products and has a significant customer base across the country making it an attractive acquisition target," Mr. Best said. "We are seeking to trade the businesses with a view to finding a buyer, and early indications show that there is interest from several parties. "We aim to keep an open dialogue with customers who have orders with the company and we will be contacting them over the next few days to keep them fully up to date. "In the meantime, if customers have any immediate queries they should call 0870 754 1813 for further information," Mr. Best continued." Headquartered in Cannock, England, Cannock Gates U.K. Ltd. http://www.thegardenfactory.co.uk/-- manufactures a range of wrought iron and solid wooden gates. Cannock also sells its products direct to consumers via a factory shop, through its mail order catalogue and its web site. The company employs over 100 people at its two sites. CHERRYPRINT LTD: Brings In Liquidators from Baker Tilly ------------------------------------------------------- Phillip Edward Pierce and Adrian David Allen of Baker Tilly were appointed joint liquidators of Cherryprint Ltd. on March 6 for the creditors' voluntary winding-up procedure. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The joint liquidators can be reached at: Phillip Edward Pierce and Adrian David Allen Baker Tilly 2 Whitehall Quay Leeds LS1 4HG England CIRCLE STUDIO: Creditors Confirm Voluntary Liquidation ------------------------------------------------------ Creditors of Circle Studio Ltd. confirmed on March 9 the company's resolutions for voluntary liquidation and the appointment of Allan Cooper and Christopher Michael White of The P&A Partnership as liquidators. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- acts for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. The company can be reached at: Circle Studio Ltd. York House Stephensons Way Wyvern Business Park Chaddesden Derby Derbyshire DE216LY England Tel: 01332 545 040 Fax: 01332 545 041 CLAREMONT KNIGHT: M. Chamberlain Leads Liquidation Procedure ------------------------------------------------------------ M. Chamberlain was appointed liquidator of Claremont Knight Ltd. on March 14 for the creditors' voluntary winding-up procedure. The company can be reached a t: Claremont Knight Ltd. Northgate Baildon Shipley West Yorkshire BD176JX England Tel: 0870 746 6100 COLLINS & AIKMAN: Court Okays Alan Miller as Special Counsel ------------------------------------------------------------ The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan gave Collins & Aikman Corp. and its debtor-affiliates authority to employ Alan B. Miller, Esq., as their special counsel. Judge Rhodes also approves Mr. Miller's Engagement Letter and for him to begin the investigation and preparation of certain causes of action for the benefit of the Litigation Trust in advance of the Effective Date of the Plan. The Debtors' First Amended Joint Plan provides for the establishment of a litigation trust and the appointment of a litigation trust administrator to pursue claims on behalf of the Litigation Trust beneficiaries. The Litigation Trust Administrator's duties include the investigation and commencement of the causes of action contained in the Litigation Trust agreement that are intended to preserve and protect the assets of Litigation Trust. The Causes of Action include those arising under Chapter 5 of the Bankruptcy Code that are not released under the Plan or Court-approved settlements. The agent for the Debtors' senior, secured prepetition lenders, in consultation with the Unofficial Steering Committee for the Debtors' senior, secured prepetition lenders, and the Official Committee of Unsecured Creditors, has advised the Debtors that Alan B. Miller has been selected to serve as the Litigation Trust Administrator. The United States Trustee for Region 9 has consented to the employment of Mr. Miller. The Debtors wish to retain Alan Miller as special counsel to begin the investigation and preparation of certain causes of action for the benefit of the Litigation Trust in advance of the effective date of the Plan. Pursuant to the engagement letter between Mr. Miller and the Debtors, the duties of Mr. Miller as special counsel to the Debtors will include: * perform the same duties and assume the same responsibilities prior to the effective date of the Plan that the Litigation Trust Administrator will perform and assume upon and after the Effective Date to preserve the Litigation Trust Assets; and * identify and retain counsel and other professionals for the Debtors and the Litigation Trust who will investigate and prepare to commence the Litigation Trust Claims against third parties as contemplated by the Plan. Mr. Miller retired as a senior partner at Weil, Gotshal & Manges LLP, but maintains the title of "senior counsel" at the firm and has specialized in business reorganizations for over 40 years. He has been involved in several Chapter 11 reorganizations, out- of-court restructurings, secured financings and investments for troubled companies, including the purchase of TWA by American Airlines, Rockefeller Center Properties, Mcorp and Thermadyne Corp., Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, informed the Court. Mr. Miller is also a member of the board of directors of Meridian Automotive Systems, Inc., and of the Senior Advisory Board of Chanin Capital Partners, Inc., an affiliate of Duff & Phelps, Inc. According to the Engagement Letter, Mr. Miller's engagement will start immediately and expire according to the Plan. He will be paid an annual retainer of US$75,000 plus 3% of the net amounts of recoveries by the Litigation Trust to or for the account of the beneficiaries. Additionally, Mr. Miller will be paid US$425 per hour for services related to the resolution of the Litigation Trust Claims. Reasonable expenses will be reimbursed. Mr. Miller is not aware of any connection with any of the potentially adverse parties in the Debtors' Chapter 11 cases. Mr. Miller stated that he does not hold or represent any adverse interest to the Debtors' estates and attests that he is a disinterested person, as the term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). Mr. Schrock told the Court that it is essential that Mr. Miller begin the work to prepare the Causes of Action now due to the time-sensitive nature of several Causes of Action, the upcoming confirmation hearing, and to ensure maximum value for the Debtors' estates and the beneficiaries of the Litigation Trust. As Mr. Miller is not allowed to begin the investigation and preparation necessary to commence the actions before the Plan's effective date, he may not be able to institute all necessary actions to preserve and protect the Litigation Trust Assets before the expiration of the statute of limitations, which may be on May 17, 2007, absent substantial estate resources being expended in the interim, Mr. Schrock said. Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. The Debtors' disclosure statement explaining their First Amended Joint Chapter 11 Plan was approved on Jan. 25, 2007. (Collins & Aikman Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). DANA CORP: Sells Bristol Plant Assets to Dana Canada for US$1.9M ---------------------------------------------------------------- Dana Corp. and its debtor-affiliates notify the U.S. Bankruptcy Court for the Southern District of New York that they will transfer certain production equipment and associated assets from their plant in Bristol, Virginia, to a facility in Magog, Quebec, owned by non-debtor affiliate Dana Canada Corporation. In October 2005, the Debtors stated that the Bristol Plant will be closed and its operations will be transferred to other facilities to reduce overall production costs. Since 2005, the Debtors have transferred certain of the Assets to their plant in Mexico. The Debtors have also determined that ownership of the Assets should also be transferred to Dana Canada. The Debtors believe this is appropriate since Dana Canada owns and operates the Magog Plant and there currently is no plan to return the Assets to the United States, Corinne Ball, Esq., at Jones Day, in New York, relates. To set an appropriate sale price for the Assets, the Debtors and Dana Canada obtained a third-party appraisal of the Assets from AT Operations, Inc., doing business as GoIndustry. GoIndustry valued the Bristol Assets at US$1,936,863. The Debtors then sold the Assets for the appraised asset value and executed a bill of sale with Dana Canada. Two entities hold liens or have other interests in the Assets: (a) Citicorp North America, Inc., as Administrative Agent under that the Senior Secured Superpriority DIP Credit Agreement, dated March 3, 2006; and (b) Citicorp USA, Inc., as Administrative Agent under a Security Agreement, dated November 18, 2005. Each Lienholder either has consented to the Magog Transfer or the Lienholder's lien or interest can be extinguished, has been waived or is capable of monetary satisfaction, according to Ms. Ball. No executory contracts are to be assumed and assigned in connection with the Magog Transfer. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China, Argentina and Italy. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. (Dana Corporation Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Discloses Non-Union Retirees Pact With Retiree Panel --------------------------------------------------------------- Dana Corp. and its debtor-affiliates and the Official Committee of Non-Union Retirees have reached an agreement regarding the non-pension retiree benefits for non-union retirees, Michael L. DeBacker, Dana Corporation's vice president, general counsel and secretary, disclosed in a regulatory filing with the Securities and Exchange Commission. The Non-Union Retirees Agreement provides that: (a) the Debtors will assist the Retirees Committee in establishing a tax-exempt Voluntary Employees' Beneficiary Association trust for the non-union retirees; and (b) the Debtors will fund the VEBA Trust through an initial contribution of $25,000,000 to be made during the bankruptcy proceedings and an additional contribution of $53,000,000 to be made on or after their emergence from bankruptcy. In exchange, the Debtors will be released from obligations for post-retirement health and welfare benefits for the non-union retirees. According to Mr. DeBacker, the U.S. Bankruptcy Court for the Southern District of New York has authorized the Debtors' request to eliminate their RetireeFlex and other post-retirement welfare benefits for all active salaried and hourly non-union workers in the United States effective April 1, 2007. Details of the Non-Union Retirees Agreement have not yet been filed with the Court as of March 14, 2007. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China, Argentina and Italy. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. (Dana Corporation Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Reaches Pact With IAMAW to Resolve Union's Claims ------------------------------------------------------------ Dana Corp. disclosed in a regulatory filing with the Securities and Exchange Commission that it has reached a settlement with the International Association of Machinists and Aerospace Workers union. The IAMAW represents 215 hourly employees at Dana's sealing products plant in Robinson, Ill. The salient terms of the IAMAW Settlement are: (a) Dana Corp. will pay $2,250,000 to IAMAW resolve all of the union's claims for non-pension retiree benefits with respect to retirees and active employees it represents. (b) Dana Corp. will not terminate the non-pension retiree benefits before July 1, 2007. (c) A new three-year collective bargaining agreement will cover the Robinson plant. Michael L. DeBacker, Dana Corp.'s vice president, general counsel and secretary, says the company are moving forward with its efforts to modify or reject the CBAs and retiree welfare benefits provided to the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; and the United Steelworkers, and is seeking to negotiate consensual agreements with these unions. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China, Argentina and Italy. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. (Dana Corporation Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). ECO-BAT TECH: Moody's Lifts Rating to Ba3 on Strong Performance --------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating of Eco-Bat Technologies Limited to Ba3 from B1 following a review of the underlying positive operational performance trends as reflected in the positive outlook assigned in December 2006. This rating action takes into account the proposed EUR600- million senior pay-in-kind note issuance at EB Holdings, which owns 86.5% of Eco-Bat Technologies Ltd, the proceeds of which will be used to refinance Holdco's existing PIK notes, to pay a dividend to Holdco's shareholder and to pay fees and expenses. Moody's has concurrently affirmed the B1 rating on the EUR235- million 10.125% senior notes due 2013 at Eco-Bat Finance PLC. The outlook on all ratings has been changed to Stable. The upgrade to Eco-Bat's Corporate Family Rating is driven by its sound credit metrics, with stronger performance largely driven by cyclically high lead prices combined with the retention of substantial free cash flow during this period of strong operational performance and the expectation that the company will not be distributing in the future this cash through distributions. The trading performance of the company and its financial flexibility are expected to continue to improve following the trend to higher lead prices. Improvements in financial results are also attributable to higher tonnage sold and cost reductions. The proposed PIK notes will be issued outside of the perimeter of Eco-Bat's Corporate Family Rating with the proceeds being used to refinance existing PIK notes, pay a dividend to Holdco's shareholder and pay fees and expenses. Moody's therefore notes that the impact of the PIK notes on the existing creditors within the rated group will be limited given the ring fencing characteristics established under the existing senior notes indenture and given the fact that the claim of the new PIK notes on the Eco-Bat restricted group as reflected in our Corporate Family Rating is solely by virtue of its potential rights to shareholder distributions by the group. Another consideration by the agency is the fact that the new notes will be extending the maturity profile of the existing PIK notes by modifying the call date where under the new PIK notes this will now no longer fall prior to the first call date on the 2013 notes. These changes contribute to reducing the risk that the new PIK notes are redeemed ahead of the senior notes thereby reducing the pressure potentially placed by the new PIK notes in the future on Eco-Bat's corporate family rating and group. A further consideration in Moody's assessment is also the fact that Eco-Bat has no formal obligation to upstream dividends to EB Holdings. Nevertheless, if maximum allowable permitted payments of around GBP35 million and then around half of future net profit thereafter were to be distributed, Moody's estimates that changes to credit metrics and Eco-Bat's credit profile would still see the Corporate Family Rating falling within the Ba3 rating category, assuming the continued positive operating performance largely driven by high lead prices was to continue. The one notch differential between the Corporate Family Rating and the 2013 notes arises predominantly due to an increase in potential priority debt that would rank ahead of the notes. This results from the January 2007 refinancing of various senior secured credit facilities with a larger pan-European borrowing base facility. While the new senior credit facilities remain largely unused, Moody's calculates that on a fully drawn basis senior secured debt ranking ahead of the 2013 notes would now represent around approximately 1/3 of total debt. The B1 rating on the 2013 notes also reflects the application of Moody's Loss Given Default methodology, which is being implemented for speculative grade issuers in Europe, the Middle East and Africa beginning March 19, 2007. As a result of this methodology, Moody's has assigned a Probability of Default rating of Ba3 to the corporate family, and an LGD4 and 65% LGD rate to the 2013 notes. The Stable outlook reflects Moody's view of the company's future credit risk profile given current cyclically high lead prices. Ratings will be constrained by continued lead price volatility and cyclicality. Affected ratings are: -- Corporate family rating at Eco-Bat Technologies Limited upgraded to Ba3. -- A probability of default rating of Ba3 has also been assigned to Eco-Bat Technologies Limited. -- Rating on EUR 235 million 10.125% senior notes due 2013 at Eco-Bat Finance PLC affirmed at B1. An LGD4 and 65% LGD rate has been assigned. -- Outlook changed to Stable. Headquartered in Matlock, UK, Eco-Bat Technologies Limited is a privately held company and is the world's largest producer of lead. The company produces around 90% of total lead output from secondary lead smelting, primarily the recycling of spent automotive and industrial lead-acid batteries. The company generated GBP731 million in revenues for the last 12 months ending Sept. 30, 2006. ECO-BAT TECHNOLOGIES: S&P Affirms B+ Ratings on Loan Refinancing ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on U.K.- based lead recycling group Eco-Bat Technologies Ltd. to negative from stable. This follows the announcement by intermediate parent holding company EB Holdings Inc. that it intends to issue a EUR600 million payment-in-kind loan due 2017 to refinance existing PIK notes of EUR250 million and to fund a distribution to shareholders. At the same time, Standard & Poor's affirmed its 'B+' long-term corporate credit rating on Eco-Bat. The 'B' senior unsecured debt rating on the EUR235 million 10.125% bonds due 2013 issued by related entity Eco-Bat Finance PLC and guaranteed by Eco-Bat was also affirmed. At the company's request, Standard & Poor's has withdrawn its 'B+' long-term corporate credit rating on EB Holdings and the 'B-' senior unsecured debt rating on EB Holdings' existing EUR250 million 10% callable PIK notes due 2015. The proposed EUR600 million PIK loan due 2017 will be unrated. "Although there is no cash flow impact on Eco-Bat in the short term, the outlook revision reflects Standard & Poor's concern that the proposed PIK loan will increase the group's vulnerability to a potentially weaker financial profile," said Standard & Poor's credit analyst Alex Herbert. Standard and Poor's recognize that the proposed issuance is a shareholder driven, rather than management driven, event. Nevertheless, the proposed PIK loan represents sizable additional debt that might need to be refinanced or repaid in future by Eco-Bat. For the purpose of our financial ratios, Standard & Poor's treats the proposed loan as debt. Interest will not be paid in cash but will accrue over time. "A downgrade could occur if the lead market were to soften over the next couple of years, at a time when interest on the PIK loan will be accruing," Mr. Herbert added. "A continued aggressive financial policy could also act as a downgrade trigger." HOUSE OF AMBER: Creditors' Meeting Slated for April 3 ----------------------------------------------------- Creditors of House of Amber Ltd. will meet at 11:30 a.m. on April 3 at: Levy & Partners 86-88 South Ealing Road London W5 4QB England Creditors who want to vote at the meeting have until noon on April 2 to submit their proxy forms together with particulars of their claims or of any security 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 March 30. INMARSAT PLC: Moody's Changes Rating Outlook to Negative -------------------------------------------------------- Moody's changed the rating outlook for Inmarsat Plc (CFR at Ba2) and its rated subsidiaries to negative (from stable). The outlook change follows the announcement that Inmarsat's subsidiary Inmarsat Finance III Limited has agreed in the first instance to provide a loan of up to US$250 million to CIP UK Holdings Limited to fund the acquisition by CIP UK's subsidiary CIP Canada Investment Inc of the entire issued share capital of Stratos Global Corporation through a Canadian trust created by CIP Canada. Stratos Global is Inmarsat's most important distributor. Subject to closing of the acquisition, Inmarsat Finance III will be granted an option (exercise price is US$0.75 to 1 million) to acquire CIP UK and with that ownership of Stratos Global. The option can not be exercised prior to April 2009. While Moody's believes that the transaction makes good strategic sense, it will also considerably increase Inmarsat's leverage (Debt/EBITDA as measured by Moody's to ~ 3.7 from ~ 3.0 on a 2006 pro forma basis). The rating action is taken on the assumption that there will be no material changes to the transaction as currently contemplated. Concurrently, Moody's assigned these ratings in the context of the implementation of its Loss Given Default methodology for European corporates from March 19, 2007: * Inmarsat Plc -- Probability of default rating: Ba2. CFR is unchanged at Ba2. * Inmarsat Finance Plc -- 7.625 % senior notes due 2012 : LGD 4, 61%. Issue rating unchanged at Ba3. * Inmarsat Finance Plc II -- 10.375% discount notes due 2012 : LGD 5, 86% Issue rating unchanged at B1. Moody's added that a negative outlook also reflects uncertainties regarding the amount of the initial loan that will be made available by Inmarsat Finance III to CIP UK Holdings. In addition to the loan required for the acquisition of Stratos Global's equity, Inmarsat Finance III has also received bank commitments to provide further funding to CIP UK Holdings/CIP Canada to accommodate a change of control put by either the holders of Stratos Global's bonds or its bank debt. Inmarsat currently believes that this is unlikely. In addition, the transaction precludes Inmarsat from exercising any management control over Stratos Global before 2009 when its call option to acquire the asset can be exercised. Inmarsat's existing Commercial Framework Agreement with its distributors that runs to March 2009 does not allow for the acquisition of distributors by Inmarsat. In the meantime Inmarsat will have to rely on the services of Communications Investment Partners, parent company of CIP UK and a professional service company with a focus on the satellite services sector and in particular Stratos Global's management to safeguard its potential investment. The acquisition of Stratos Global is still subject to amongst other things regulatory and shareholder approval and closing is not expected before the third quarter of 2007. Finally Moody's notes that the announcement of the transaction occurs at a time where Inmarsat is still at a relatively early stage in the execution of important projects such as the roll-out of its broadband global area network and the launch of handheld satellite services and the launch of its third (and last) Imarsat-4 satellite is slated for early 2008. The transaction makes sense from a strategic perspective as it creates the option for beneficial changes in Inmarsat's distribution model given Stratos Global's position as Inmarsat's most important distributor with amongst other things a significant volume discount entitlement. Exercising the option should also help Inmarsat to optimize its position with regard to the 2009 renegotiation of the Commercial Framework Agreement. While the transaction will restrict Inmarsat's position to that of a provider of finance to CIP UK Holdings prior to exercising its option, Moody's would expect the loan agreement to be structured in a way such that any leakage of value from the Stratos Global ownership away from CIP and CIP Canada will not be possible. Moody's noted that if debt (as measured by Moody's DEBT/EBITDA ratio) were to increase visibly from the level of ~ 3.7x that would be reached pro forma for the CIP loan downward pressure on the Ba2 CFR rating would be likely. Conversely, continued successful execution on the company's main strategic initiatives (BGAN, handhelds, satellite launch) together with relative indebtedness improving once the initial CIP loan has been made should help to stabilize the outlook. The rating agency added that if the CIP loan is extended as envisaged there could be positive implications under Moody's LGD methodology for the ratings of the senior notes at Inmarsat Finance and the discount notes at Inmarsat Finance II as a result of the introduction of junior ranking debt to the capital structure of the Inmarsat group. The likely increase of overall leverage from the addition of the lower ranking debt is reflected in the corporate family rating and the negative outlook. Inmarsat's 2006 results showed solid overall underlying revenue growth of 4.4 %, helped by a strong fourth quarter (+6.4%) and driven by a strong performance in maritime services (+6.6%) and aeronautical services (+35.2% from a still relatively small base). Maritime revenues was driven by data services while the company's efforts to stem the erosion of maritime voice services showed some success with voice revenues falling by just 1%. Measurable progress in the deployment of BGAN helped land data services to return to good growth in the second half of the year after a slight decline in the first half and the launch of Inmarsat's own handheld satellite services in the second half of 2006 showed some promise in halting the significant decline in land voice services due to strong competition from other operators such as Globalstar and Iridium. Overall revenue from land services was down by 4.7%. Capacity leases to third parties were little changed from 2005. Due to successful cost control EBITDA grew by 5% to US$331.7 million (+7.1% excluding one-off termination cost). Capex at US$114.4 million was considerably lower than previous guidance of US$175 million and allowed for the generation of US$63 million in free cash flow after dividends US$98.2 million. However, due to the ongoing accretion of the company's 10.375% discount notes, reported year-end gross debt (including deferred satellite payments was little changed at US$922.4 million relative to 2005 (US$919.5 million). Inmarsat Plc, a provider of global mobile satellite communications services, is based in London, England. J P MEDIA: Hires Liquidator from Griffin & King ----------------------------------------------- Timothy Frank Corfield of Griffin & King was appointed liquidator of J P Media Ltd. on March 14 for the creditors' voluntary winding-up proceeding. The company can be reached at: J P Media Ltd. Hilton Lane Essington Wolverhampton West Midlands WV11 2BQ England Tel: 0845 345 2004 Fax: 0845 345 2006 JTM DESIGN: Liquidator Invites Creditors to Submit Claims --------------------------------------------------------- Creditors of JTM Design and Build Ltd. are invited to prove their debts and submit their claims in writing to: Paul Charlton Joint Liquidator Mazars LLP Mazars House Gelderd Road Gildersome Leeds LS27 7JN Robert Adamson and Paul Charlton of Mazars LLP were appointed joint liquidators of the company on March 6. Mazars -- http://www.mazars.com/-- provides in audit, accounting, tax, and advisory services. KYE LTD: Joint Liquidators Take Over Operations ----------------------------------------------- Charles William Anthony Escott and Gerald Clifford Smith of RSM Robson Rhodes LLP were appointed joint liquidators of Kye Ltd. on March 12 for the creditors' voluntary winding-up proceeding. RSM Robson Rhodes LLP -- http://www.robsonrhodes.co.uk/-- provides a wide range of auditing, assurance, advisory and compliance services for both private and public sectors. The firm is a member of the RSM International, the world's sixth largest international organization of accountants and business advisers. The company can be reached at: Kye Ltd. Riverside Road Gorleston Great Yarmouth Norfolk England NR316PX Fax: 01502 514 081 LEEDS WHOLESALE: Creditors Confirm Liquidator's Appointment ----------------------------------------------------------- Creditors of Leeds Wholesale Flowers Ltd. confirmed on March 8 the appointment of M. P. Halligan of MPH Recovery as the company's liquidator. The company can be reached at: Leeds Wholesale Flowers Ltd. Unit 1 Devro Court Knowsthorpe Way Leeds West Yorkshire LS9 0SW England Tel: 0113 248 2772 MANSARD MORTGAGES: Fitch Rates GBP6.875-Mln Class B2 Notes at BB ---------------------------------------------------------------- Fitch Ratings assigned Mansard Mortgages 2007-1 PLC's GBP250 million mortgage-backed floating-rate notes due in 2049 expected ratings: -- GBP82.5 million Class A1 notes: 'AAA' -- GBP97.5 million Class A2 notes: 'AAA' -- GBP36.25 million Class M1 notes: 'AA' -- GBP14.375 million Class M2 notes: 'A' -- GBP12.5 million Class B1 notes: 'BBB' -- GBP6.875 million Class B2 notes: 'BB' The collateral underlying the notes in this transaction consists solely of Rooftop Mortgage Limited originations. RML is owned by The Bear Stearns Companies Inc. and Crown Asset Management Limited, at 80% and 20%, respectively. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of Rooftop Mortgages and the sound legal structure of the transaction. The 28.80% credit enhancement for the Class A notes is provided by the subordination of the Class M1, Class M2, Class B1, Class B2 notes, excess spread and a reserve fund with an initial balance of 0.8% and a target balance of 0.8% of the total outstanding note balance as of closing. There is also a liquidity facility available to meet income deficiencies, including interest shortfalls on the Class A notes. However, it will not be available to fund any periodic principal deficiencies. This issuance marks RML's fourth foray into the UK non- conforming market, although some of its loans also previously formed part of the collateral for the Bluestone Securities plc transaction, which closed in December 2004. PRIORY FINANCE: Taps Liquidators from Taylor Rowlands ----------------------------------------------------- J. Harvey Madden and Peter W. Gray of Taylor Rowlands were appointed joint liquidators of Priory Finance (U.K.) Ltd. on March 15 for the creditors' voluntary winding-up proceeding. The company can be reached at: Priory Finance (U.K.) Ltd. 2 Chaloner Street Guisborough Cleveland TS146QD England Tel: 0870 241 0363 RIDGEWOOD TEXTILES: Creditors' Meeting Slated for April 4 --------------------------------------------------------- Creditors of Ridgewood Textiles Ltd. will meet at 2:30 p.m. on April 4 at: Park Inn Harrow Southern Way Harlow Essex CM18 7BA England Michael Ioannou of Gregory Michaels & Co. will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require. The insolvency practitioner can be reached at: Michael Ioannou Gregory Michaels & Co. 6 Southwick Mews Paddington London W2 1JG England SCHEFENACKER PLC: Enters Second Phase of Restructuring ------------------------------------------------------ Schefenacker plc enters into the second phase of its restructuring with the presentation of a proposal for a company voluntary arrangement. The company's bondholders will be asked to vote for a debt-to- equity-swap at a creditors' meeting on March 30. This will determine the company's survival as an important automotive supply player. With the support of the company's main customers, senior creditors and the shareholder management could present a proposal to restructure the company's unsustainable debt levels and to recapitalize the business. On the operational side, since its appointment on Dec. 11, 2006, the current management has completed the separation of the lighting business and is in advanced stages of negotiations for a sale of this division. The management has also ensured a controlled wind-down of the loss-making US lighting operations. "Following the appointment of an extended executive management team in early February and the announcement of our restructuring proposal we are beginning to see momentum in our order intake," Stephen J. Taylor, acting Chief Executive of Schefenacker, said. "It is now crucial that we get the support of the bondholders for this proposal. It is the best and only solution available for the company to survive in its entirety and for the bondholders to participate in its development." Terms of the Plan Under the terms of the proposal, the company will receive EUR35 million fresh money from senior creditors and EUR20 million from Dr. Alfred R. Schefenacker. Additionally, senior creditors will have a substantial reduction of cash interest payment on their debt and Dr. Schefenacker will give up over EUR100 million in shareholder loans and his control of the company. The new equity structure of the company will look as follows: 69.6% senior lenders, 25.4% Dr. Schefenacker, 5% bondholders. In an analysis presented with the proposal, Schefenacker presents a financial outlook for 2007 based on the mirror division only of around EUR77 million EBITDA and EUR805 million sales if the proposed financial restructuring is successful. If bondholders reject the proposal Schefenacker will undergo an enforcement of security by its senior lenders in a controlled manner, absent which there would be a break-up of the group and substantial job losses. The company anticipates that if the bondholders reject the company voluntary arrangement proposal they will receive nothing at all in respect of their bonds. About Schefenacker Headquartered in Hampshire, United Kingdom, Schefenacker Plc (fka Schefenacker AG) -- http://www.schefenacker.com/-- develops, produces and supplies rear vision systems, lighting systems and sound systems to the world's automotive manufacturers. The company employs 7,900 people and operates 27 sites in Australia, China, France, Hungary, India, Japan, Korea, Mexico, Romania, Slovenia, Spain, the United Kingdom, and the U.S.A. * * * As reported in the TCR-Europe on Feb. 15, Moody's Investors Service downgraded the Corporate Family Rating of Schefenacker AG to Ca from Caa2, the rating on the company's senior subordinated notes to C from Ca and the rating for the senior secured facility from Caa1 to Caa2. Moody's said the outlook has been changed to stable. In December 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive parts supplier Schefenacker AG to 'SD' (selective default) from 'CCC'. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on Sept. 12, 2006, following the company's announcement that it had appointed financial-restructuring experts. S&P said the 'C' long-term debt rating on the Schefenacker's EUR200-million subordinated notes maturing in 2014 remains on CreditWatch with negative implications. SCHEFENACKER PLC: Succeeds Schefenacker AG's Assets & Debts ----------------------------------------------------------- Schefenacker PLC disclosed its succession to all of the assets, liabilities and obligations of Schefenacker AG. Pursuant to consents received from a majority of the holders of its EUR200-million 9-1/2% Senior Subordinated Notes due 2014, Schefenacker AG and certain of its subsidiaries guaranteeing the Notes executed a Third Supplemental Indenture dated Dec. 15, 2006 to the indenture dated Feb. 11, 2004 in order to facilitate a consensual restructuring. In accordance with the Indenture, Schefenacker PLC confirms that on March 9, 2007, it succeeded to all of Schefenacker AG's obligations in a Fourth Supplemental Indenture dated Feb. 9, 2007. In addition, each of the subsidiary guarantors of the Notes has confirmed their respective guarantees in the Fourth Supplemental Indenture. About Schefenacker Headquartered in Hampshire, United Kingdom, Schefenacker Plc (fka Schefenacker AG) -- http://www.schefenacker.com/-- develops, produces and supplies rear vision systems, lighting systems and sound systems to the world's automotive manufacturers. The company employs 7,900 people and operates 27 sites in Australia, China, France, Hungary, India, Japan, Korea, Mexico, Romania, Slovenia, Spain, the United Kingdom, and the U.S.A. * * * As reported in the TCR-Europe on Feb. 15, Moody's Investors Service downgraded the Corporate Family Rating of Schefenacker AG to Ca from Caa2, the rating on the company's senior subordinated notes to C from Ca and the rating for the senior secured facility from Caa1 to Caa2. Moody's said the outlook has been changed to stable. In December 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive parts supplier Schefenacker AG to 'SD' (selective default) from 'CCC'. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on Sept. 12, 2006, following the company's announcement that it had appointed financial-restructuring experts. S&P said the 'C' long-term debt rating on the Schefenacker's EUR200-million subordinated notes maturing in 2014 remains on CreditWatch with negative implications. SEC REALISATIONS: Appoints Liquidators from Grant Thornton ---------------------------------------------------------- Martin Ellis and Andrew Hosking of Grant Thornton U.K. LLP were appointed joint liquidators of SEC Realisations Ltd. (formerly Sira Environmental Certification Ltd.) on March 6 for the creditors' voluntary winding-up proceeding. 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. The company can be reached at: SEC Realisations Ltd. Rake Lane Eccleston Chester Cheshire CH4 9JN England Tel: 01244 670 900 Fax: 01244 681 330 SOUTHERN PACIFIC: Fitch Affirms BB Ratings on Class E Notes ----------------------------------------------------------- Fitch Ratings affirmed all tranches of Southern Pacific Securities 05-2 Plc following a reserve fund draw on the March 2007 interest payment date. The transaction is backed by loans originated by UK non- conforming lender Southern Pacific Mortgage Limited. The rating affirmations are: -- Class A2c and A2c DAC: 'AAA' -- Class B1a: 'AA' -- Class B1c: 'AA' -- Class C1a: 'A' -- Class C1c: 'A' -- Class D1a: 'BBB' -- Class E1c: 'BB' -- Class E2c: 'BB' Rising arrears, repossessions and losses in the underlying portfolio, as well as a step-up in the detachable A coupon rate, have led to the first drawings being made on the deal's allocated reserve fund. The amount drawn is GBP294,397 out of a total reserve of GBP2.55 million, representing 11.54% of available first loss. Fitch has remodeled the outstanding mortgage portfolio backing SPS 05-2, using its default and cash flow models. Its analysis shows that credit enhancement remains sufficient to support the ratings of all tranches at their current levels. While the ratings have been affirmed, Fitch notes there remains potential for future reserve fund drawings when the DAC increases during the next six quarters and when further losses are realized. In affirming the ratings, the agency notes that loans in arrears of more than three months currently account for 23.62% of the portfolio, compared to the average 11.24% seen in Fitch's non- conforming index for deals at 18 months seasoning. Transactions with this degree of seasoning would ordinarily have shown some stabilization of three month plus arrears at this point, which is not the case in this instance. Fitch noted at the time of its rating action in September 2006, that SPS 05-2 was experiencing a faster rise in arrears levels than had been seen in previous SPML deals. Additionally, there has been a substantial increase in the number of sold repossessed cases. Capstone report that 99 properties were sold in the three months to March 2007, compared with 43 properties in the quarter to December 2006. As arrears cases are now exiting the portfolio through repossession and sale, Fitch has conducted further analysis on these cases, in particular where a loss has crystallized. With respect to losses, higher loss severities have been experienced on the second charge loans. The Weighted Average Loss Severity on the second charge loans is reported as being 49.50%, compared with a significantly lower 7.63% for the first charge loans. However, higher loss severities are expected given that second-charge mortgages tend to be higher LTV and also rank junior to the first charge holder in terms of the distribution of enforcement proceeds from collateral upon which they are secured. The overall SPS 05-2 loss severity for repossessed cases is 11.11%. Average loss severities remain below loss severity assumptions for the lowest rated note category of 'BB'. With high arrears levels, the increase in cumulative losses and further step-ups in the DAC rate, there has been a negative impact on the available revenue funds and thus the excess spread position. The reserve fund draw coincided with an increase in the DAC rate to 2.70% from 2.20%. The DAC rate steps up again next quarter to 2.75%. However, 20.27% of the portfolio reverted to the full standard variable rate between September 2006 and March 2007. These reversions should boost the degree of excess spread for the coming quarter, which should compensate for the further DAC step-up. Nevertheless, these interest rate reversions could also cause a payment shock to affected borrowers. Consequently this could result in increased arrears due to further stretched mortgage affordability. Fitch notes as well that, for the first year, the differential between the discounted and the stabilized margin was collateralized. This has now expired, with no cash collateral being posted to make up the differential between the stabilized rate and the current rate. Accordingly, the extent of available excess spread during the remaining teaser rate period remains somewhat restricted. Since August 2005 all notes have benefited from an accumulation in credit enhancement that provides extra protection to the lower-rated tranches. Additionally, the reserve fund was fully funded at the time of the draw. However, the reserve fund draw has had a negative impact on the Class E1c notes, and credit enhancement has decreased marginally to 0.69% from 0.70%. Given increases in arrears, repossessions and loss severities, the agency will continue to monitor the transaction closely, particularly with respect to signs of stabilization of the arrears position. In addition, if losses continue to trend upwards, there remains the potential for a further draw on the reserve fund. Fitch has the same concern regarding Southern Pacific Securities 05-3 plc. Arrears are also trending much higher than the non- conforming index, at 19.34% of the outstanding balance at the December 2006 IPD, only marginally lower than SPS 05-2, with the deal only 15 months seasoned. Similar to SPS 05-2, the DAC steps up in the fifth quarter. If arrears continue to increase at the current pace and losses start to crystallize with similarly high loss severities, it remains the possibility that there will not be sufficient available revenue to prevent a drawing on the reserve fund. TRIPOS INC: Dec. 31 Balance Sheet Upside-Down by US$5.4 Million --------------------------------------------------------------- Tripos Inc. reported a net loss of US$4.9 million on revenues of US$27.4 million for the year ended Dec. 31, 2006, compared with a net loss of US$4.5 million on revenues of US$28.0 million for the year ended Dec. 31, 2005. The company posted an operating loss of US$4.6 million for the fiscal year ending Dec. 31, 2006, compared with an operating loss of US$3.1 million in 2005. Net loss allocable to common shareholders was US$35.0 million, or US$3.42 per basic share, compared with a net loss of US$4.3 million, or US$0.42 per basic share, in 2005. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. Tripos has called a special meeting of shareholders to approve the proposed sale of its Discovery Informatics business to Vector Capital. As shareholder approval is required for the sale, Generally Accepted Accounting Principles (GAAP) requires that Tripos continue to report the Discovery Informatics results as continuing operations until shareholder approval is obtained. During the fourth quarter of 2006, the company determined to hold the Discovery Research business for sale and accordingly, GAAP requires that the Discovery Research business be reported as discontinued operations for both the current and prior year periods. Impairment Charges The fourth-quarter financial results included a non-cash impairment charge in the amount of US$15 million to adjust the carrying value of assets in the Discovery Research business to the projected proceeds from a contemplated sale of the operating segment. This charge approximates the difference between the value of the Discovery Research business and the company's best estimate of the anticipated net sale price to be received for that business. In the third quarter of 2006, Tripos recorded an impairment charge of US$3.6 million that approximated the loss to be incurred on the sale of excess property, buildings, and equipment at its chemistry facility in Bude, England. Restructuring Charges The company incurred a restructuring charge in the fourth quarter of US$471,000 for the elimination of 22 positions at the Tripos Discovery Research facility. The number of jobs eliminated in the Discovery Research business in 2006 was 112 with an associated charge of US$1.6 million. Tripos also eliminated nine positions from the Discovery Informatics and administrative groups, incurring a charge of US$120,000 in the first quarter of 2006. A restructuring charge of US$861,000 was recorded in the fourth quarter of 2005 at Tripos Discovery Research related to a temporary building that was idled in anticipation of the job reductions at its chemistry facility. Operating Activities In the Discovery Informatics division a charge of US$650,000 was taken to reflect the additional costs to complete the informatics service contract with Wyeth Pharmaceuticals. This project has experienced delays and cost overruns that now are anticipated to result in the project being completed at cost. The adjustment in the fourth quarter eliminates the cumulative gross profit from the project and was a prime contributor for the business unit's quarterly operating loss. Tripos incurred operating losses of US$3.9 million at the Tripos Discovery Research Ltd. chemistry facility in the fourth quarter due primarily to costs and overhead exceeding the level of revenue achieved, and recording the obligation to repay a portion of a grant previously received to fund the expansion of its chemistry facilities. When operating results are combined with the restructuring and impairment charges, this segment had losses of US$19.4 million in the quarter. The fourth quarter marks the anniversary of the completion of the four-year US$90 million chemical compound project for Pfizer Inc. The inability to replace this source of revenue in the face of competition from India and China is the principal cause of the deterioration in the operating results in the Discovery Research Division. In addition, costs related to the strategic alternatives process - including proxy costs, investment-banking fees of US$250,000 along with legal and professional fees of nearly US$550,000 - amounted to approximately US$800,000 in the fourth quarter. For the full year, the Discovery Research unit was severely impacted by its inability to replace the large Pfizer contract. Excluding the restructuring charges and the impairment charges, this unit generated losses of US$9.7 million. When including the restructuring and impairment charges, the loss for the year was US$29.9 million from the Discovery Research business. In spite of repeated efforts to streamline the organization, Tripos was not able to generate sufficient revenues or cut fixed facility, equipment, and overhead costs quickly enough to keep pace with the loss of business that went offshore to less expensive locales. The Discovery Informatics unit generated losses of US$2 million for the year that were primarily driven by the incremental costs incurred and expected to be incurred to deliver the next- generation laboratory informatics project for Wyeth. The company had incurred costs in excess of US$1 million during 2006 related to the strategic alternatives process, including legal, professional, and investment banking fees. Tripos continues to believe that the costs of being a pubic company in the current regulatory environment are not justified by current revenue and near-term growth opportunities. "We are extremely disappointed with the 2006 operating results. New business that had been anticipated and cultivated in the Discovery Research area did not develop as forecasted," said Dr. John P. McAlister, president and chief executive officer of Tripos. "Throughout this year, we have dealt with the rapid realignment of the market for outsourced discovery research services to the low-cost venues in Asia and Eastern Europe. As a result, we have continued to take steps to streamline the Discovery Research organization as revenue expectations have changed while we have sought to build a project pipeline with existing customers and attract new business. "Throughout the year, but particularly in the fourth quarter, efforts to effect a successful negotiation and sale of our operating units added increased burden to the organization's management. These efforts required that the company maintain operations at certain levels in order to be able to offer operating enterprises to potential buyers." Liquidity and Capital Resources Due to the company's financial performance in 2006, Tripos was unable to comply with a financial covenant under its credit facility with LaSalle Bank N.A. The company requested a waiver of the covenant violation and an extension of the credit facility past its maturity date of Jan. 1. LaSalle Bank advised Tripos that it would waive the covenant violation and extend the maturity date until Feb. 28. Tripos and LaSalle completed an amendment to the loan agreements in December 2006. On Feb. 27, LaSalle Bank granted a further extension of the company's credit facility until March 21. During the discussions with LaSalle Bank that led to the extension through March 21, LaSalle reiterated that it does not intend to further extend the maturity date of the credit facility if the stockholders do not approve the Asset Sale. The company's ability to operate as a going concern and fund its operating and capital needs if stockholders do not approve the Asset Sale is dependent upon the company's ability to obtain capital in an amount sufficient to repay LaSalle and provide sufficient working capital for the company. The company does not have a commitment for alternative financing. If new financing is available, it would likely be on terms that are materially adverse to the company and its stockholders. If new capital is not available and stockholders have not approved the Asset Sale, the company would attempt to renegotiate the current terms of the LaSalle facility with the lender. If stockholders have not approved the Asset Sale and the company can neither obtain alternative financing nor renegotiate the current facility with LaSalle, the company may determine that it should pursue a restructuring of the company's debt and other interests under applicable law. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. TRIPOS INC: Shareholders Vote to Sell Unit & Liquidate Company -------------------------------------------------------------- Tripos Inc. disclosed that its proposals to sell the assets of its Discovery Informatics business to Vector Capital and to adopt a plan of dissolution and liquidation of the company following completion of that sale were each approved by the required stockholder vote on March 16. Liquidation of the company will occur following resolution of all corporate debts and obligations, and will commence approximately six months from now. About Vector Capital Based in San Francisco, California, Vector Capital -- http://www.vectorcapital.com/-- is a private equity boutique specializing in buyouts, spinouts, and recapitalizations of established technology businesses. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. TRIPOS INC: Completes US$26.2-Mln Sale of Discovery Informatics --------------------------------------------------------------- Tripos Inc. has completed the sale of the assets of its Discovery Informatics business to affiliates of Vector Capital and received a final purchase price of US$26.2 million for the unit. This represented an increased purchase price of approximately US$575,000 due to improved working capital of the business since the signing of the asset purchase agreement in November 2006. Tripos used a portion of the proceeds to retire existing debt with LaSalle Bank and Horizon Technology Finance. Liquidation of the company will occur following resolution of all remaining corporate debts and obligations, and will commence approximately six months from now. Efforts to sell Tripos' Discovery Research business are continuing, although no assurance can be given that a transaction for this division can be completed on satisfactory terms. About Vector Capital Based in San Francisco, California, Vector Capital -- http://www.vectorcapital.com/-- is a private equity boutique specializing in buyouts, spinouts, and recapitalizations of established technology businesses. About Tripos Inc. Headquartered in St. Louis, Missouri, Tripos Inc. -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry- research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. At Dec. 31, 2006, the company's balance sheet showed US$35.4 million in total assets and US$36.9 million in total liabilities, resulting in a US$5.4 million total stockholders' deficit. VIRGIN MEDIA: S&P Affirms BB- Ratings on Planned Loan Payments -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' senior secured debt rating and '1' recovery rating on Virgin Media Investment Holdings Ltd.'s GBP4.98 billion senior secured facilities. The '1' recovery rating reflects the rating agency's expectations of full recovery of principal in the event of a payment default. The affirmation follows VMIH's proposed GBP890 million drawings under tranches B5 and B6 to prepay the outstanding tranche A and A1 debt due for repayment from 2007 until 2009. The quantum of VMIH's total senior secured debt will, therefore, only incrementally increase. The proposed increase will be provided on similar terms to the existing B tranches. This refinancing and repayment deferral removes the near-term pressure of Virgin Media's debt amortization profile. Total tranche A amortizations of GBP1,582 million remain in 2009 and 2010 combined. Virgin Media Inc., formerly NTL Inc., the U.K.-based telecommunications provider, is the ultimate parent of VMIH. At Dec. 31, 2006, Virgin Media reported total debt of GBP6,159 million. The '1' recovery rating on the GBP890 million tranches B5 and B6 reflects the adequate numerical coverage and comprehensive first-ranking security package of the senior secured A and B tranches and GBP100 million revolving credit facility debt. Consequently, the 'BB-' loan rating is one notch above the corporate credit rating on Virgin Media. Standard & Poor's notes that as a result of the deferred repayment profile and increased senior debt at the assumed point of default in our recovery analysis, recovery prospects could be weaker for VMIH's GBP300 million tranche C junior-lien facility, rated 'B+' with a recovery rating of '2'. Virgin Media is also seeking the modest relaxation of some financial and other covenants of the senior facilities agreement. These include facilitating equity dividend payments and asset securitizations. If sufficiently material, the latter could have recovery rating implications for the senior and junior lien tranches. * BOOK REVIEW: American Express: The People Who Built the Great Financial Empire --------------------------------------------------------------- Author: Peter Z. Grossman Publisher: Beard Books Hardcover: 420 pages List Price: US$34.95 Own your personal copy at http://amazon.com/exec/obidos/ASIN/1587982838/internetbankrupt American Express: The People Who Built the Great Financial Empire by Peter Z. Grossman is the inside story of how a major corporation prevailed to reach worldwide success. This fascinating book reveals the inside story of one of the best-known and most influential corporations in the world. It is not just the history of a company, but of a business. The American Express Company is a consummate example of corporate success and endurance. The book will prove informative for all interested in the world of business, and it will reinforce the notion that fact can be more engrossing than fiction. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. 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 * * *