/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070509.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, May 9, 2007, Vol. 8, No. 91 Headlines A U S T R I A ATTENSAM PERSONALBEREITSTELLUNG: Claims Registration Ends June 4 DIANA LLC: Vienna Court Orders Business Shutdown FLIESEN CREATIV: Salzburg Court Orders Business Shutdown FRANK LLC: Claims Registration Period Ends May 29 MAIR REISEN: Claims Registration Period Ends June 1 OBERBICHLER TRANSPORTE: Claims Registration Period Ends June 1 OR-BAU YELGIN: Claims Registration Period Ends May 31 PARZER BAUHANDEL: Claims Registration Period Ends May 29 B E L G I U M GOODYEAR TIRE: Signs Tandy Brands as Auto Accessories Licensee C Z E C H R E P U B L I C ON SEMICONDUCTOR: Steady Gains Cue S&P to Up Rating to BB- VALEANT PHARMACEUTICALS: Earns US$8.5 Million in First Quarter VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors D E N M A R K CLEAR CHANNEL: Negotiates Revised Merger Proposal with Bidders CLEAR CHANNEL: Units Ink Asset Purchase Deal with GoodRadio.TV EASTMAN KODAK: Closes Unit Sale to Onex Corp. for US$2.5 Billion EASTMAN KODAK: Taps Dale Patterson to Lead Packaging Segment F R A N C E CHEMTURA CORP: Signs Sale Agreement with PERGAN for Peroxide Biz DELPHI CORP: Court Extends Lease-Decision Period Until Sept. 30 DELPHI CORP: Posts US$63 Million Net Loss in March 2007 DELPHI CORP: Section 1113/1114 Conference Set for May 23 OMNOVA SOLUTIONS: Fitch Affirms and Withdraws Low-B Ratings SOLECTRON CORP: Fitch Affirms Low-B Ratings with Stable Outlook G E R M A N Y 3PL GMBH: Claims Registration Period Ends May 24 ABACUS LIEGENSCHAFTEN: Claims Registration Period Ends June 1 AUTOHAUS NAGEL: Claims Registration Period Ends May 18 BACKEREI UND KONDITOREI: Claims Registration Period Ends June 5 BALIBU MANAGEMENT: Claims Registration Period Ends July 13 BAUSTOFFZENTRUM LEIMBACH: Claims Registration Period Ends May 29 BBS AUTOTEILE: Claims Registration Period Ends June 12 BBS KRAFTFAHRZEUGTECHNIK: Claims Registration Ends June 12 BEFATEX GMBH: Claims Registration Ends June 26 BERGMANN AUTOMATEN: Claims Registration Ends May 31 BETONWERK VOLLAND: Claims Registration Ends May 21 BLEILE BODENBELAGE: Claims Registration Ends June 5 COMCENTER HAMBURG: Claims Registration Ends June 25 CONVEY HAMBURG: Claims Registration Ends June 14 CPD AUTOTEILE: Claims Registration Ends June 13 DAIMLERCHRYSLER: Chrysler Launches Ad Campaign to Define Brand E.N.D.E.R.E.S GMBH: Claims Registration Ends May 29 ELMO ELEKTRO: Claims Registration Period Ends June 11 FAHRRADWERK ENIK: Claims Registration Period Ends June 5 H + D BAU: Claims Registration Period Ends June 12 HEIDELBERGCEMENT AG: Reviews Options in Hanson Acquisition Plan M-TEC TEXTILMASCHINEN: Claims Registration Period Ends July 16 NAZZARO PUTZ: Claims Registration Period Ends July 9 SCHWERTNER & PARTNER: Claims Registration Period Ends May 31 UNTERNEHMENSBERATUNG GMBH: Claims Registration Ends July 2 WMH - MODEVERTRIEB: Claims Registration Period Ends July 15 I R E L A N D SCOTTISH RE: S&P Lifts Credit Rating to B+ on Equity Investment I T A L Y DANA CORP: Wants Section 1113/1114 Ruling Deferred Until May 31 DANA CORP: Wants Open-Ended Deadline to Remove Court Actions DRESSER INC: Riverstone-Led Consortium Completes Takeover TEKSID ALUMINUM: Moody's Confirms Junk Ratings K A Z A K H S T A N AIBEK COMPANY: Creditors Must File Claims by May 29 ALCOM LTD: Creditors' Claims Due June 1 ECONOM EXPRESS: Proof of Claim Deadline Slated for May 29 FIRM KAZKOR: Claims Registration Ends June 2 JALGAS-AGRO LLP: Claims Filing Period Ends June 13 KAZKOMMERTSBANK JSC: Re-brands Retail Banking Arm as Kazkom KOKSHETAUSKY HLEBOZAVOD: Creditors Must File Claims by June 1 KURYLYS CONSULTING: Creditors' Claims Due June 1 NURKAZGAN-SERVICE LLP: Proof of Claim Deadline Slated for June 1 RULAND ALMATY: Claims Registration Ends June 1 VIVALITY 20: Claims Filing Period Ends June 2 K Y R G Y Z S T A N INTORGSINTEZ LLC: Creditors' Meeting Slated for May 25 MOBINDA LLC: Creditors Must File Claims by June 20 N E T H E R L A N D S GLOBAL POWER: Court Extends Excl. Plan Filing Period to May 17 GLOBAL POWER: Court Extends Consulting Pacts with Ex Executives R U S S I A ABZELIL-SEL-ENERGO: Creditors Must File Claims by May 14 ALFA OJSC: Creditors Must File Claims by May 14 APSHERONSK-AGRO-TEKH-SNAB: Creditors Must File Claims by June 14 COUNTRY-HALL OJSC: Creditors Must File Claims by May 14 DIARY LLC: Creditors Must File Claims by May 14 GAS COMPANY: Creditors Must File Claims by May 14 HYDROLYZE FACTORY: Asset Bidding Deadline Slated for May 16 KHABAROVSKIY FACTORY: Asset Sale Slated for May 15 META OJSC: Creditors Must File Claims by May 14 NAFTATRANS CJSC: Creditors Must File Claims by May 14 POLIEL CJSC: Creditors Must File Claims by May 14 PROMSVYAZBANK: Fitch Affirms B+ IDR with Stable Outlook SHAKHUNSKIY WOOD-PROM-KHOZ: Creditors Must File Claims by May 14 SHIP AND MECHANICAL: Creditors Must File Claims by June 14 TAGIL-VODKA JSC: Creditors Must File Claims by June 14 YUBILEYNYJ OJSC: Asset Bidding Deadline Slated for May 18 TUYMAZY-MEAT LLC: Creditors Must File Claims by June 14 UEMSKIY CERAMIC: Asset Sale Slated for May 30 UFA-AUDIT CJSC: Court Names S. Konovalov as Insolvency Manager UFA-OIL-GAS-STROY: Asset Bidding Deadline Slated for May 18 YUKOS OIL: Shell & BP Set to Join Auction for Petrol Stations YUKOS OIL: RFFI Sets May 11 Auction for Office & Research Assets YUKOS OIL: Slovakia Wants Russian Help Over Transpetrol Stake S P A I N FENDER MUSICAL: S&P Assigns B+ Rating on US$200-Mil. Term Loan S W I T Z E R L A N D BEATRICE KAISER: Creditors' Liquidation Claims Due May 30 CONFISERIE SIMMEN: Creditors' Liquidation Claims Due May 31 ELIAS JSC: Creditors' Liquidation Claims Due May 31 ERMA ELAN: Creditors' Liquidation Claims Due May 31 FUNKEY LLC: Zug Court Starts Bankruptcy Proceedings HORSY REITSPORT: Creditors' Liquidation Claims Due May 30 IMPRIM LLC: Creditors' Liquidation Claims Due May 29 KREIS 4 GARAGE: Creditors' Liquidation Claims Due May 30 SITA REISEBURO: Creditors' Liquidation Claims Due May 29 XCCESS LLC: Creditors' Liquidation Claims Due May 30 U K R A I N E ATON-PLUS LLC: Creditors Must Register Claims by May 12 HERSON REGIONAL: Creditors Must Register Claims by May 13 LVOV EXPERIMENTAL: Creditors Must Register Claims by May 12 PARTNER LLC: Claims Filing Bar Date Set May 12 ROMNY PLANT: Claims Filing Bar Date Set May 12 U N I T E D K I N G D O M A.D.I. ENVIRONMENTAL: Creditors' Meeting Slated for May 18 AGCO CORPORATION: Earns US$24.5 Million in Qtr. Ended March 31 AJC CLEANING: Appoints Joint Administrators from Vantis ARMOR HOLDINGS: Inks US$4.1 Billion Sale Pact with BAE Systems ARMOR HOLDINGS: S&P Places Watch to Positive on BAE Acquisition BFS INVESTMENTS: Payment for GBP700 Mln Split Capital Investors BRITISH AIRWAYS: To Launch Consortium Bid for Iberia This Week BRITISH AIRWAYS: Inks Strategic Partnership with HEICO Aerospace COINSTAR INC: S&P Raises Corporate Credit Rating to BB from BB- COSTAIN GROUP: Arden Gets Financial Close on GBP30 Mln Project COSTAIN GROUP: Joint Venture Unit Wins Highways Agency Contract DEE-SIGN WINDOWS: Creditors' Meeting Slated for May 22 EXETER FUND: Compensation for GBP700 Mln Split Capital Investors FELBER JUCKER: Taps Joint Administrators from Tenon Recovery HMV GROUP: Total Group Sales Down 2% in 52 Weeks Ended April 28 HURLSTON HALL: Brings In Administrators from Kroll Ltd INTERNATIONAL RECTIFIER: Wedbush Morgan Raises Rating to "Buy" ISLE OF CAPRI: Awaits Decision on NASDAQ Delisting Hearing ISOFT GROUP: IBA Halts Share Trading to Raise New Equity Capital KRISPY KREME: Prudential Downgrades Shares to Neutral Weight LEEDS UNITED: Appoints Joint Administrators from KPMG MEGAZONE TECHNOLOGY: Creditors' Meeting Slated for May 23 NORTHWAY COMPUTER: Creditors' Meeting Slated for May 18 OAKVIEW HORIZONS: Creditors' Meeting Slated for May 18 ODYSSEY EXPERIENCE: Creditors' Meeting Slated for June 8 OFFICE FURNITURE: Creditors' Meeting Slated for May 18 PRICELINE.COM INC: Settles 2000 Class Action Suit for US$80 Mil. PORTRAIT CORP: Plan Confirmation Hearing Scheduled for May 21 RADNOR HOLDINGS: Files Disclosure Statement in Delaware RADNOR HOLDINGS: US Trustee's Ch. 7 Conversion Plea Put on Hold ROCKET PRINT: Creditors' Meeting Slated for May 18 SHAW GROUP: Wins US$700 Mil. EPC Contract from American Electric SHAW GROUP: Subsidiary Provides Furnace Equipment to Petrokemya SOLUTIA INC: Judge Beatty Okays Settlement Pact with FMC Corp. SOLUTIA INC: Wants Deal with GE Capital on Contested Leases OK'd VISIONCRAFT LTD: Creditors' Meeting Slated for May 22 * UK Corporate Insolvencies Down 2.8% in First Quarter 2007 ********* ============= A U S T R I A ============= ATTENSAM PERSONALBEREITSTELLUNG: Claims Registration Ends June 4 ---------------------------------------------------------------- Creditors owed money by LLC Attensam Personalbereitstellung (FN 43939t) have until June 4 to file written proofs of claim to court-appointed estate administrator Christof Stapf at: Dr. Christof Stapf c/o Mag. Michael Neuhauser Esslinggasse 9 1010 Vienna Austria Tel: 536 50-0 Fax: 536 50-14 E-mail: officewien@aaa-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 17 (Bankr. Case No. 3 S 58/07k). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. DIANA LLC: Vienna Court Orders Business Shutdown ------------------------------------------------ The Trade Court of Vienna entered April 18 an order shutting down the business of LLC Diana (FN 97776p). Court-appointed estate administrator Johannes Jaksch 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. Johannes Jaksch c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 10 (Bankr. Case No 5 S 48/07d). Stephan Riel represents Dr. Jaksch in the bankruptcy proceedings. FLIESEN CREATIV: Salzburg Court Orders Business Shutdown -------------------------------------------------------- The Land Court of Salzburg entered April 16 an order shutting down the business of LLC Fliesen Creativ (FN 274948k). Court-appointed estate administrator Thomas Bruendl 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. Thomas Bruendl Braunauerstrasse 4 5204 Strasswalchen Austria Tel: 06215/6622-0 Fax: 06215/6622-22 E-mail: t.bruendl@bruendl-reischl.at Headquartered in Seekirchen am Wallersee, Austria, the Debtor declared bankruptcy on April 3 (Bankr. Case No 23 S 25/07g). FRANK LLC: Claims Registration Period Ends May 29 ------------------------------------------------- Creditors owed money by LLC Frank (FN 236161x) have until May 29 to file written proofs of claim to court-appointed estate administrator Alexander Jelly at: Mag. Alexander Jelly Postgasse 2 9500 Villach Austria Tel: 04242/243 11 Fax: 04242/210717 E-mail: office.jelly@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on April 18 (Bankr. Case No. 41 S 35/07f). MAIR REISEN: Claims Registration Period Ends June 1 --------------------------------------------------- Creditors owed money by LLC Mair Reisen (FN 38092v) have until June 1 to file written proofs of claim to court-appointed estate administrator Roland Paumgarten at: Dr. Roland Paumgarten c/o Dr. Alice Rabl-Fuchs Josef Egger-Strasse 3 6330 Kufstein Austria Tel: 05372/62144 Fax: 05372/6214412 E-mail: ra.kanzlei@advocat-tirol.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:15 a.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Conference Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Wattens, Austria, the Debtor declared bankruptcy on April 17 (Bankr. Case No. 19 S 38/07x). Alice Rabl-Fuchs represents Dr. Paumgarten in the bankruptcy proceedings. OBERBICHLER TRANSPORTE: Claims Registration Period Ends June 1 -------------------------------------------------------------- Creditors owed money by LLC Oberbichler Transporte (FN 211082s) have until June 1 to file written proofs of claim to court- appointed estate administrator Reinhold Unterweger at: Dr. Reinhold Unterweger Rosengasse 8 9900 Lienz Austria Tel: 04852/65644 Fax: 04852/656444 E-mail: ra-untbeim@tirol.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:45 a.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Conference Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Huben/Matrei, Austria, the Debtor declared bankruptcy on April 16 (Bankr. Case No. 19 S 35/07f). OR-BAU YELGIN: Claims Registration Period Ends May 31 ----------------------------------------------------- Creditors owed money by KEG Or-Bau Yelgin (FN 258519a) have until May 31 to file written proofs of claim to court-appointed estate administrator Felix Stortecky at: Dr. Felix Stortecky Dr.-Karl-Lueger-Platz 2 1010 Vienna Austria Tel: 513 88 37 Fax: 514 35 40 E-mail: ra-stortecky@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 14 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 3 (Bankr. Case No. FN 258519a). PARZER BAUHANDEL: Claims Registration Period Ends May 29 -------------------------------------------------------- Creditors owed money by LLC Parzer Bauhandel (FN 277025s) have until May 29 to file written proofs of claim to court-appointed estate administrator Hans-Peter Pfluegl at: Mag. Hans-Peter Pfluegl Oberndorfer Ortsstrasse 56a 3130 Herzogenburg Austria Tel: 02782/83 553 Fax: 02782/83 553-55 E-mail: hanspeter.pfluegl@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on June 19 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Traismauer, Austria, the Debtor declared bankruptcy on April 17 (Bankr. Case No. 14 S 77/07z). ============= B E L G I U M ============= GOODYEAR TIRE: Signs Tandy Brands as Auto Accessories Licensee -------------------------------------------------------------- The Goodyear Tire & Rubber Company has signed Tandy Brands Accessories, Inc. as a licensee for selected gifts and auto accessories. The products will be available for marketing beginning 2008. Tandy Brands will market the Goodyear gift line to auto parts retail outlets, tire dealers, and mass market auto departments. This will open up a whole new distribution channel for Tandy Brands. "We are pleased to be exploring new product opportunities with a great company like Goodyear and look forward to offering our product to the consumer with one of the best known and respected names in the auto world. We believe the Goodyear name will add instant credibility to our product," said Britt Jenkins, President and Chief Executive Officer of Tandy Brands. About Tandy Brands Accessories, Inc. Tandy Brands Accessories, Inc. -- http://www.rolfs.net/-- designs, manufactures and markets fashion accessories for men, women and children. Key product categories include belts, wallets, handbags, suspenders, neckwear, gifts and sporting goods. About Goodyear Tire 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, among others, Chile, Colombia, Guatemala, Jamaica and Peru in Latin America; Belgium, France and Germany in Europe; Australia, China and Singapore in Asia Pacific, . Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter on April 10, 2007, Fitch Ratings has affirmed ratings for The Goodyear Tire & Rubber Company, including 'B' Issuer Default Rating; 'BB/RR1' rating of its US$1.5 billion first-lien credit facility; 'BB/RR1' rating of its US$1.2 billion second-lien term loan; 'B/RR4' rating of its US$300 million third-lien term loan; 'B/RR4' rating of its US$650 million third-lien senior secured notes; and 'CCC+/RR6' Senior unsecured debt rating. =========================== C Z E C H R E P U B L I C =========================== ON SEMICONDUCTOR: Steady Gains Cue S&P to Up Rating to BB- ---------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Phoenix, Arizona-based ON Semiconductor Corp. to 'BB-' from 'B+'. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB' rating to the company's amended and restated credit agreement, with a recovery rating of '1', indicating the expectation of full (100%) recovery of principal in the event of a payment default. "The rating action reflects steady gains in profitability and improved debt protection measures, expected to continue over the longer term," said Standard & Poor's credit analyst Bruce Hyman. The ratings for ON Semiconductor reflect its substantial debt burden and its limited market share in a highly competitive commodity industry, as well as the company's low-cost position, good free cash flows and adequate operating liquidity, and good debt protection measures. ON Semiconductor is a major supplier of standard logic and analog integrated circuits and discrete semiconductors, holding mid-single-digit percentage shares of several commodity markets; industry conditions track the global economy, with little exposure to any one customer or market. The company has reduced its operating costs by relocating its manufacturing to low-cost regions, contributing to overall competitiveness, while bolstering margins. ON Semiconductor -- http://www.onsemi.com/-- supplies power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. The company has operations in Japan and the Czech Republic. VALEANT PHARMACEUTICALS: Earns US$8.5 Million in First Quarter -------------------------------------------------------------- Valeant Pharmaceuticals International reported results for the first quarter of 2007. First Quarter 2007 vs. 2006 Highlights: * Revenues increased seven percent to US$213.4 million compared to US$199.5 million. * Product sales decreased two percent to US$176.9 million compared to US$181.4 million. * Alliance revenue totaled US$36.5 million compared to US$18.1 million. Included in alliance revenue in the 2007 first quarter was a milestone payment of US$19.2 million related to the out-licensing of pradefovir. * Income from continuing operations was US$8.6 million compared to a loss of US$5.8 million. * Net income is US$8,568,000. * Adjusted for non-GAAP items, income from continuing operations was US$16.6 million compared to a loss of US$4.2 million. Excluding the pradefovir milestone payment. Timothy C. Tyson, president and chief executive officer, said, "This clearly was a soft quarter for product sales. In many ways, this is typical for our business in that we often have lower sales in the first quarter along with higher marketing costs to support annual growth. This year, however, the first quarter was particularly impacted by a significant reduction in sales to certain wholesalers in Mexico and by lower sales of Infergen(R) and Efudex(R) in the United States. The reduced sales in Mexico were precipitated by a negotiating tactic of two major wholesalers, which we believe to be a transitory issue that is not reflective of underlying demand for our products. We were able to mitigate the effect of these challenging top- line issues on our margins and earnings in the quarter through expense management. We remain encouraged that underlying demand is stable or growing for most of our key products, and continue to believe that we will achieve growth at industry average rates or better in the year." Revenues Product sales declined in the 2007 first quarter compared to the same period last year, primarily due to the aforementioned issues in the Mexican distribution chain, which significantly impacted sales of BedoyectaTM. In addition, sales of Infergen and Efudex were lower in the 2007 first quarter, while sales of Cesamet(R) Kinerase(R) SolcoserylTMand BisocardTM were higher. The effects of foreign currency exchange increased product sales by US$4.1 million and operating income by US$0.4 million in the 2007 first quarter. Alliance revenue in the 2007 first quarter included a milestone payment of US$19.2 million from Schering-Plough upon the closing of the company's out-licensing agreement for pradefovir. Also included in alliance revenue were royalties from the sale of ribavirin, which totaled US$17.3 million in the 2007 first quarter, compared to US$18.1 million in the same period last year. Regional Sales Performance North America product sales decreased six percent in the 2007 first quarter compared to the same period last year, primarily due to lower sales of Infergen and Efudex, partially offset by higher sales of Cesamet and Kinerase. The decrease in sales of Infergen largely reflects a decline in the overall market for interferon products in the United States. The decline in Efudex sales primarily reflects the pull-through of inventory from the launch of the company's generic product at the end of 2006. Sales in the International region in the 2007 first quarter were US$9.7 million, or 22 percent lower than the same period last year predominantly due to the distribution chain issues in Mexico, which affected sales of Bedoyecta and nearly all products in the country. Sales in the Europe, Middle East and Africa (EMEA) region increased 16 percent in the 2007 first quarter. Approximately half of the increase relates to the effects of foreign currency. In spite of continued government imposed price pressures in many European markets, Mestinon(R), Solcoseryl, Bisocard and several other promoted products grew significantly. Much of this growth was generated in Central and Eastern Europe. Financial Metrics The company's gross margin on product sales was 71 percent in the 2007 first quarter, compared to 68 percent in the same period last year. The improvement in gross margin was primarily due to fewer inventory write-offs in the current period and the impact on last year's margin from a scheduled shutdown of the company's manufacturing facility in Mexico. Selling expense was 36 percent of product sales in the 2007 first quarter compared to 35 percent in the same period last year. Selling expenses are typically higher in the first half of the year to support annual growth. General and administrative expenses were 14 percent of product sales in the 2007 first quarter compared to 16 percent in the same period last year. Included in general and administrative expenses in the 2007 first quarter was an expense of US$3.8 million for an unfavorable arbitration decision in the company's indemnification claim against former Xcel Pharmaceuticals shareholders relating to pre-acquisition sales, partially offset by a US$2.2 million gain from the sale of the company's contact lens business in Europe. Research and development expenses were 13 percent of product sales in the 2007 first quarter compared to 16 percent in the same period last year. The decline was primarily due to the sale of the company's discovery operations at the end of 2006. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International (NYSE:VRX) -- http://www.valeant.com/-- is a research-based specialty pharmaceutical company that discovers, develops, manufactures and markets products primarily in the areas of neurology, infectious disease and dermatology. In Europe, the company has commercial offices in Belarus, Czech Republic, France, Germany, Hungary, Italy, The Netherlands, Poland, Russia, Slovak Republic, Spain, Turkey, Ukraine, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2007, Standard & Poor's affirmed its ratings on Costa Mesa, California-based Valeant Pharmaceuticals International, including the 'B+' corporate credit rating. The ratings were removed from CreditWatch, where they were placed with negative implications Oct. 24, 2006, to reflect the ongoing uncertainty at that time regarding the company's inability to file its Form 10-Q for the third quarter and the possibility that all of its debt obligations would have been accelerated. In a TCR-Europe report on Dec. 20, Moody's Investors Service downgraded the Corporate Family Rating of Valeant Pharmaceuticals International to B2 from B1, and kept Valeant's ratings under review for possible further downgrade. Moody's initially placed the ratings under review for possible downgrade on Oct. 23, 2006. In November 2006, Standard & Poor's Ratings Services lowered its ratings on Valeant Pharmaceuticals International. The corporate credit rating was lowered to 'B+' from 'BB-'. The ratings remain on CreditWatch with negative implications, where they were placed Oct. 24 to reflect the ongoing uncertainty regarding the company's inability to file its Form 10-Q for the third quarter and the consequences if the company is not able to resolve the situation in 60 days. VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors ------------------------------------------------------------ Valeant Pharmaceuticals International' Board of Directors has elected G. Mason Morfit to fill an open board position for a term that expires at the 2008 Annual Stockholders Meeting. Mr. Morfit's election brings the company's board to eight members. Robert A. Ingram, chairman, said, "We are very pleased to have someone of Mason's caliber join our board. He brings important financial and business acumen, and his perspective as a major stockholder will be invaluable to us." Mr. Morfit is a partner with ValueAct Capital, an investment management firm with US$5 billion in assets under management. ValueAct Capital currently is Valeant Pharmaceuticals' largest stockholder and holds 13.2 million shares of the company's common stock. Prior to joining ValueAct Capital in 2001, Mr. Morfit worked in equity research for Credit Suisse First Boston. Mr. Morfit currently serves as a director of MSD Ignition and is a former director of Solexa, Inc. He has a B.A. degree from Princeton University and is a CFA charterholder. "As a long-term stockholder, ValueAct Capital believes in the company's exciting potential," stated Mr. Morfit. "I look forward to actively working together with the board and management team to further enhance value for all stockholders." About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International (NYSE:VRX) -- http://www.valeant.com/-- is a research-based specialty pharmaceutical company that discovers, develops, manufactures and markets products primarily in the areas of neurology, infectious disease and dermatology. In Europe, the company has commercial offices in Belarus, Czech Republic, France, Germany, Hungary, Italy, The Netherlands, Poland, Russia, Slovak Republic, Spain, Turkey, Ukraine, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2007, Standard & Poor's affirmed its ratings on Costa Mesa, California-based Valeant Pharmaceuticals International, including the 'B+' corporate credit rating. The ratings were removed from CreditWatch, where they were placed with negative implications Oct. 24, 2006, to reflect the ongoing uncertainty at that time regarding the company's inability to file its Form 10-Q for the third quarter and the possibility that all of its debt obligations would have been accelerated. In a TCR-Europe report on Dec. 20, Moody's Investors Service downgraded the Corporate Family Rating of Valeant Pharmaceuticals International to B2 from B1, and kept Valeant's ratings under review for possible further downgrade. Moody's initially placed the ratings under review for possible downgrade on Oct. 23, 2006. In November 2006, Standard & Poor's Ratings Services lowered its ratings on Valeant Pharmaceuticals International. The corporate credit rating was lowered to 'B+' from 'BB-'. The ratings remain on CreditWatch with negative implications, where they were placed Oct. 24 to reflect the ongoing uncertainty regarding the company's inability to file its Form 10-Q for the third quarter and the consequences if the company is not able to resolve the situation in 60 days. ============= D E N M A R K ============= CLEAR CHANNEL: Negotiates Revised Merger Proposal with Bidders -------------------------------------------------------------- The board of directors of Clear Channel Communications, Inc. is currently in discussions with the private equity group co-led by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. regarding a possible change in the terms and structure of the proposed merger between an affiliate of the private equity group and Clear Channel. Currently under discussion is a proposal that contemplates: (i) an increase in the merger consideration to be paid to all shareholders from US$39.00 to US$39.20 per share and (ii) the opportunity for each unaffiliated shareholder to elect between cash and stock in the surviving corporation in the merger (up to an aggregate cap equivalent to 30% of the outstanding shares immediately following the merger, or approximately 6% before the merger). The board of directors rescheduled the special meeting of shareholders to May 22, at 1:00 p.m., Central Daylight Savings Time, to allow the board of directors sufficient time to complete its discussions with the private equity group, consult with its significant shareholders and further develop the buyer's proposal to issue in the merger equity in the surviving corporation. On May 3 the board of directors of Clear Channel, with L. Lowry Mays, Mark Mays, Randall Mays and B.J. McCombs recused from the vote, determined not to accept a similar proposal from the private equity group, citing concerns that the change in structure would require a delay in the date of the special meeting of up to 90 days with no certainty that the merger would be approved by the Company's shareholders. Since that time, a number of shareholders of Clear Channel, including some of its largest shareholders, have contacted members of the board or its financial advisor and asked the board to delay the date of the special meeting in order to provide them an opportunity to consult with the board on the proposed change in structure and terms. Shareholders of record as of March 23, 2007 will remain entitled to vote at the special meeting to be held on May 22. The proxy cards previously mailed to shareholders remain valid. About Clear Channel Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter on April 23, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CLEAR CHANNEL: Units Ink Asset Purchase Deal with GoodRadio.TV -------------------------------------------------------------- Clear Channel Communications Inc.'s subsidiaries have entered into an assets purchase agreement with GoodRadio.TV LLC for the sale of 187 radio stations, along with the stations' FCC licenses, real property and station contracts. The subsidiaries are Clear Channel Broadcasting Inc., Clear Channel Broadcasting Licenses Inc., CC Licenses LLC, Capstar Radio Operating Company, Capstar TX Limited Partnership, AMFM Radio Licenses LLC, Citicasters Co., Citicasters Licenses LP and Jacor Broadcasting Corporation. GoodRadio.TV will pay approximately $452 million in cash and will assume certain liabilities, including existing business contracts and licenses with the U.S. Federal Communications Commission. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter on April 23, 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. EASTMAN KODAK: Closes Unit Sale to Onex Corp. for US$2.5 Billion ---------------------------------------------------------------- Eastman Kodak Company has completed the sale of its Health Group to an affiliate of Onex Corporation, for up to US$2.55 billion. The acquired business is continuing under the name Carestream Health, Inc. Eastman Kodak has received US$2.35 billion in cash, and will receive up to US$200 million in additional future payments if Onex achieves certain returns with respect to its investment. Primarily because of tax-loss considerations, Eastman Kodak expects to retain the vast majority of the initial US$2.35 billion cash proceeds. As previously indicated, the company plans to use a portion of the proceeds to fully repay its approximately US$1.15 billion of secured term debt. Approximately 8,100 employees associated with the Health Group have transferred to Carestream Health. The business is a worldwide leader in information technology, molecular imaging systems, medical and dental imaging, including digital x-ray capture, medical printers, and x-ray film. "We are now studying options for the cash that will remain after we pay off the secured term debt," Antonio M. Perez, Chairman and Chief Executive Officer, said. "Through this rigorous process with our Board of Directors, we are focusing on financially attractive ways to drive profitable growth and enhance shareholder returns." About Onex Corporation Onex Corporation (TSX: OCX) is a Toronto based investment firm. It was founded in 1983 by Gerry Schwartz. Today it is a public traded company but Schwartz has 67.6% of the voting control and continues to serve as Chairman and CEO. Its head office is on the 49th floor of BCE Place in Toronto, with a branch office in New York City. About Eastman Kodak Company Headquartered in Rochester, New York, Eastman Kodak Company -- http://www.kodak.com/-- is a worldwide vendor of imaging products and services. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. * * * In February 2007, Moody's Investors Service placed Eastman Kodak Company's B1 Corporate Family Rating on review for a possible downgrade. Moody's review was prompted by the company's sale of the Kodak Health Group as well as the fundamental operating performance of the company. Moody's commented that if the sale of KHG was not pending, Moody's would expect to confirm the company's B1 rating with a negative outlook. In January 2007, Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had US$3.5 billion in debt as of June 30, 2006. EASTMAN KODAK: Taps Dale Patterson to Lead Packaging Segment ------------------------------------------------------------ Eastman Kodak Company has named Dale Patterson to the position of Segment Manager, Packaging and Product Manager, Flexo Plates, Kodak's Graphic Communications Group. Mr. Patterson brings more than 25 years in the package printing industry to his role with Kodak. At Kodak, he will oversee all marketing activities for Kodak's full product portfolio for package printing, with specific responsibility for marketing Kodak's line of flexographic printing plates. "Dale's experience in the packaging industry on the product marketing side and as an owner in the package printing market is valuable to Kodak and our customers," Vic Stalam, Director of Market Segments and Vice President, Packaging Products, Kodak's Graphic Communications Group, said. "He understands the issues facing our customers and will be an advocate for solutions that help solve these challenges." Mr. Patterson has served in a variety of roles within the packaging industry, including experience in marketing and product management for DuPont Cyrel; Vice President of Marketing at Artwork Systems; Vice President of Sales and Marketing at Harper Corporation; and President and owner of Absolutely Micro Clean LLC. He currently serves on the 2007 Board of Directors for the Flexographic Pre-Press Platemakers Association. About Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. * * * In February 2007, Moody's Investors Service said it is continuing its review on Eastman Kodak's ratings for possible downgrade including Corporate Family Rating at B1, Senior Unsecured Rating at B2, and Senior Secured Credit Facilities at Ba3. In January 2007, Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had US$3.5 billion in debt as of June 30, 2006. =========== F R A N C E =========== CHEMTURA CORP: Signs Sale Agreement with PERGAN for Peroxide Biz ---------------------------------------------------------------- Chemtura Corporation has signed a definitive agreement to sell its organic peroxides business to German organic peroxides maker PERGAN GmbH in an all-cash transaction for an undisclosed amount, in order to place greater focus on its core businesses. Included in the transaction will be Chemtura's Marshall, Texas manufacturing facility. The transaction, which requires the approval of certain regulatory bodies, is expected to close within 90 days. Proceeds from the sale will be used primarily for debt reduction. "This sale is a small but important step in the restructuring of our Plastic Additives portfolio," said Chemtura Chairman and CEO Robert L. Wood. "We are divesting product lines where we don't have competitive advantage to better focus on areas where we do." "PERGAN, which already has organic peroxide facilities in Germany and China, will gain a position in the North American market through this transaction. We are pleased to be transferring this business to a buyer who is interested in growing it, which should benefit both customers and Marshall employees," Mr. Wood concluded. The organic peroxides business being sold had revenues for 2006 of approximately US$20 million. Chemtura employs approximately 40 people in its Marshall, Texas facility. About PERGAN GmbH PERGAN GmbH -- http://www.pergan.com/-- is a world-class supplier of organic peroxides and other polymer additives to the polymer production and processing industries. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and The United Kingdom. * * * In November 2006, Moody's Investors Service assigned a Ba1 rating to Chemtura Corp.'s US$400 million of senior notes due 2016 and affirmed the Ba1 ratings for its other debt and the corporate family rating. DELPHI CORP: Court Extends Lease-Decision Period Until Sept. 30 --------------------------------------------------------------- The Hon. Robert Drain of the United States Bankruptcy Court for the Southern District of New York further extended the date by which Delphi Corp. and its debtor-affiliates must assume or reject unexpired non-residential real property leases through and including the earlier of: (a) September 30, 2007; or (b) the date on which a plan of reorganization in the Debtors' Chapter 11 cases is confirmed. The Debtors are lessors or lessees with respect to approximately 80 Real Property Leases, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, notes. The Debtors, according to Mr. Butler, are in the process of implementing their transformation plan. To facilitate their transformation plan, the Debtors recently entered into the Equity Purchase Commitment Agreement and the Plan Framework Support Agreement with, among others, Appaloosa Management L.P., Harbinger Capital Partners Master Fund I, Ltd., and Cerberus Capital Management, L.P., which provide a platform for the resolution of transformation issues and the formulation of a consensual plan of reorganization. Until the outcome of the Framework Agreements is known, the Debtors cannot determine which Real Property Leases should be assumed and which should be rejected, Mr. Butler asserts. The September 30, 2007 deadline coincides with the Debtors' current deadline to solicit acceptances of a plan of reorganization. Mr. Butler notes that the Debtors sought the September 30, 2007 solicitation extension because of the possibility that: -- emergence from reorganization might be delayed because of the size and complexity of their cases; -- the actions required to be taken under the Framework Agreements might not be completed by the end of the second quarter of 2007; and -- the transactions contemplated by the Framework Agreements might not be consummated. "These same factors can delay the Debtors' ability to acquire all information necessary to decide whether to assume or reject a lease," Mr. Butler avers. Thus, the Debtors require more time to complete their evaluation of the Real Property Leases. If the current Lease Decision Deadline is not extended, the Debtors may be compelled, prematurely, to assume substantial, long-term liabilities under the Real Property Leases or forfeit benefits associated with some Leases to the detriment of the Debtors' ability to operate and preserve the going-concern value of their business, Mr. Butler points out. The non-debtor parties under the Real Property Leases will not be prejudiced by an extension because the Debtors are making payments under the Leases as they come due, Mr. Butler assures the Court. ORIX Responds ORIX Warren, LLC, and Delphi Automotive Systems, LLC, are parties to a certain lease for non-residential real property located at 4551 Research Parkway, Warren, Ohio. ORIX relates that it does not object to the extension requested by the Debtors. ORIX, however, reserves its right to (i) object to any future request for an extension of time to assume or reject the Lease, and (ii) file a motion to shorten the Extension Period. 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. Delphi has regional headquarters in Japan, Brazil, and France. 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. DELPHI CORP: Posts US$63 Million Net Loss in March 2007 ------------------------------------------------------- Delphi Corporation, et al. Unaudited Consolidated Balance Sheet As of March 31, 2007 (In Millions) ASSETS Current assets: Cash and cash equivalents US$113 Restricted cash 108 Accounts receivable, net General Motors and affiliates 1,649 Other third parties 977 Non-Debtor subsidiaries 389 Notes receivable from non-Debtor subsidiaries 352 Inventories, net Productive material, work-in-process and supplies 826 Finished goods 302 Prepaid expenses and other 297 -------- TOTAL CURRENT ASSETS 5,013 Long-term assets: Property, net 2,134 Investment in affiliates 376 Investments in non-Debtor subsidiaries 3,402 Goodwill 152 Other intangible assets 33 Other 336 -------- TOTAL ASSETS US$11,446 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities not subject to compromise: Debtor-in-possession financing US$3,072 Accounts payable 1,272 Accounts payable to non-Debtor subsidiaries 446 Accrued liabilities 815 -------- TOTAL CURRENT LIABILITIES 5,605 Long-term liabilities not subject to compromise: Employee benefit plan obligations and other 639 -------- TOTAL LONG-TERM LIABILITIES 639 Liabilities subject to compromise 17,607 -------- TOTAL LIABILITIES 23,851 Stockholders' deficit: Common stock 6 Additional paid-in capital 2,772 Accumulated deficit (12,274) Accumulated other comprehensive loss (2,857) Treasury stock, at cost (3.2 million shares) (52) -------- TOTAL STOCKHOLDERS' DEFICIT (12,405) -------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT US$11,446 Delphi Corporation, et al. Unaudited Consolidated Statement of Operations Month Ended March 31, 2007 (In Millions) Net sales: General Motors and affiliates US$849 Other customers 567 Intercompany non-Debtor subsidiaries 95 -------- Total net sales 1,511 -------- Operating expenses: Cost of sales 1,387 Selling, general and administrative 82 Depreciation and amortization 53 -------- Total operating expenses 1,522 -------- Operating loss (11) Interest expense (31) Loss on extinguishment of debt (23) Other income, net 7 Reorganization items (6) Income tax benefit (expense) (3) Equity income from non-consolidated subsidiaries 5 Equity income from non-Debtor subsidiaries, net of tax (1) -------- NET LOSS (US$63) Delphi Corporation, et al. Unaudited Consolidated Statement of Cash Flows Month Ended March 31, 2007 (In Millions) Cash flows from operating activities: Net loss (US$63) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 53 Pension and other postretirement benefit expenses 42 Equity loss from unconsolidated subsidiaries, net (5) Equity loss from non-Debtor subsidiaries, net of tax 1 Reorganization items 6 Loss on debt extinguishment 23 Changes in operating assets and liabilities: Accounts receivable, net (149) Inventories, net 41 Prepaid expenses and other (4) Accounts payable, accrued and other long-term debts (65) U.S. employee special attrition program (29) Pension contributions (1) Other postretirement benefit payments (17) Receipts (payments) for reorganization items, net (15) Other (8) -------- Net cash used in operating activities (190) Cash flows from investing activities: Capital expenditures (11) Proceeds from sale of property 2 Other (2) -------- Net cash used in investing activities (11) Cash flows from financing activities: Net proceeds from DIP facility 177 Net repayment of borrowings under other debt agreements (2) -------- Net cash used in financing activities 175 -------- Decrease in cash and cash equivalents (26) Cash and cash equivalents at beginning of period 139 -------- Cash and cash equivalents at end of period US$113 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. Delphi has regional headquarters in Japan, Brazil, and France. 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. DELPHI CORP: Section 1113/1114 Conference Set for May 23 -------------------------------------------------------- The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York directed Delphi Corp. and its debtor-affiliates, certain parties, and the Official Committee of Equity Security Holders to hold a conference concerning the 1113/1114 Motion and related matters at 2:00 p.m., Prevailing Eastern Time, on May 23, 2007. The parties include: * UAW * IUE-CWA * USW * IBEW Local 663 * IAMAW District 10 * IUOE * Appaloosa Management L.P. * Wexford Capital LLC * Wilmington Trust Company * General Motors Corporation * Official Committee Of Unsecured Creditors The Court will conduct an in-person, in-camera chambers conference pursuant to Section 105(d)(1) of the Bankruptcy Code with the Parties at 3:00 p.m., Prevailing Eastern Time, on May 31, 2007, so that it may be apprised of the status of the Debtors' framework agreements with, among others, Appaloosa Management L.P., and the parties' negotiations regarding the consensual resolution of the 1113/1114 Motions. Judge Drain extended the date by which he will rule on the 1113/1114 Motions to May 31, 2007, with the consent of the Debtors and the Respondents and to the extent required by statute. If the Debtors file a disclosure statement on or prior to May 31, 2007, the ruling dates on the 1113/1114 Motions will be further extended to July 31, 2007, Judge Drain ruled. 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. Delphi has regional headquarters in Japan, Brazil, and France. 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. OMNOVA SOLUTIONS: Fitch Affirms and Withdraws Low-B Ratings ----------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn the following ratings for Omnova Solutions Inc.: -- Issuer Default Rating 'B+'; -- Senior secured revolver 'BB+/RR1'; -- Senior secured notes 'B+/RR4'. All of the debt ratings for this issuer are withdrawn. Fitch will no longer provide rating coverage of Omnova. Headquartered in Fairlawn, Ohio, OMNOVA Solutions Inc. -- http://www.omnova.com/-- manufactures emulsion polymers and specialty chemicals, decorative and functional surfaces and single-ply roofing systems for a variety of commercial, industrial and residential end uses. OMNOVA operates in three business segments: Performance Chemicals, Decorative Products and Building Products. It utilizes 15 manufacturing, development and design facilities in North America, Europe and Asia to service its broad customer base. In Europe, the company maintains operations in France, United Kingdom, and Poland. SOLECTRON CORP: Fitch Affirms Low-B Ratings with Stable Outlook --------------------------------------------------------------- Fitch Ratings has affirmed Solectron Corporation's ratings as: -- Issuer Default Rating at 'BB-'; -- Senior secured bank facility at 'BB+'; -- Senior unsecured debt at 'BB-'; -- Subordinated debt at 'B+'. Fitch's actions affect approximately US$600 million in debt securities. The Rating Outlook is Stable. The ratings and outlook reflect Fitch's expectations that: Solectron's operating performance will remain stable with modest revenue growth; the company will be challenged to materially improve operating margins in the current market environment; Solectron will maintain a conservative balance sheet with debt- to-EBITDA of approximately 2 times (x); and the electronics manufacturing services (EMS) industry will continue to face substantial and occasionally intensely competitive pricing pressures, as vendors struggle with excess capacity, and uneven end-market demand. The ratings are supported by the company's: conservative capital structure, evidenced by one of the lowest debt-to- EBITDA ratios of any top-tier EMS provider; solid liquidity position; long- term trends supporting additional penetration of the outsourcing model; and Fitch's expectations that the larger and better capitalized tier 1 EMS providers will benefit from OEM (original equipment manufacturer) supplier consolidation over time. Ratings concerns center on competition from faster growing original design manufacturers and vertically integrated competitors, particularly in high-volume/low-mix end-markets with more attractive growth rates; the thin operating margins and low return on invested capital associated with the EMS industry despite providers' ongoing efforts to expand higher margin service offerings; and significant exposure to slower growing and more volatile traditional end-markets. Fitch believes that a significant and sustained improvement in profitability driven by a stabilization of the competitive landscape within the EMS industry could lead to positive ratings actions. Conversely, Fitch believes that increased balance sheet leverage and/or acquisition activity and the operational risk inherent in such a strategy could lead to negative ratings action. As of March 2, 2007, liquidity was sufficient and supported by approximately US$1.1 billion of unrestricted cash and cash equivalents and an undrawn US$350 million senior secured revolving credit facility expiring August 2009. Total debt as of March 2, 2007, was approximately US$641 million and consisted primarily of US$450 million 0.5% convertible senior notes due 2034 and US$150 million 8% senior subordinated notes due 2016. ============= G E R M A N Y ============= 3PL GMBH: Claims Registration Period Ends May 24 ------------------------------------------------ Creditors of 3PL GmbH have until May 24 to register their claims with court-appointed insolvency manager Hans Raab. Creditors and other interested parties are encouraged to attend the meeting at 9:10 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 Bamberg Meeting Hall 317 Synagogenplatz 1 96047 Bamberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bamberg opened bankruptcy proceedings against 3PL GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Hans Raab Marktstr. 1 91448 Emskirchen Germany Tel: 09104/8294-0 Fax: 09104/8294-41 The Debtor can be reached at: 3PL GmbH Attn: Dieter Karrer, Manager Biegenhofstr. 16 96103 Hallstadt Germany ABACUS LIEGENSCHAFTEN: Claims Registration Period Ends June 1 ------------------------------------------------------------- Creditors of Abacus Liegenschaften GmbH u. Co. Cliff-Hotel Ruegen KG have until June 1 to register their claims with court- appointed insolvency manager Joerg Sievers. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 18, 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 Stralsund Hall A 421 Fourth Floor House A Frankendamm 17 Stralsund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Stralsund opened bankruptcy proceedings against Abacus Liegenschaften GmbH u. Co. Cliff-Hotel Ruegen KG on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Joerg Sievers Robert-Blum-Str. 1 17489 Greifswald Germany The Debtor can be reached at: Abacus Liegenschaften GmbH u. Co. Cliff-Hotel Ruegen KG Siedlung am Wald 22 a 18586 Sellin Germany AUTOHAUS NAGEL: Claims Registration Period Ends May 18 ------------------------------------------------------ Creditors of Autohaus Nagel GmbH & Co. KG have until May 18 to register their claims with court-appointed insolvency manager Dirk Ritzenhoff. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Giessen Hall 406 Fourth Floor Building B Gutfleischstrasse 1 35390 Giessen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Giessen opened bankruptcy proceedings against Autohaus Nagel GmbH & Co. KG on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dirk Ritzenhoff c/o Gartner Fluegel & Partner Lindenstrasse 28 36037 Fulda Germany Tel: 0661/8304-193 Fax: 0661/8304-234 The Debtor can be reached at: Autohaus Nagel GmbH & Co. KG Attn: Alfred Kramer, Manager Alte Liederbacher Strasse 2 36304 Alsfeld Germany BACKEREI UND KONDITOREI: Claims Registration Period Ends June 5 --------------------------------------------------------------- Creditors of Backerei und Konditorei Melchiors GmbH have until June 5 to register their claims with court-appointed insolvency manager Rainer Maus. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Wuppertal opened bankruptcy proceedings against Backerei und Konditorei Melchiors GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Rainer Maus Turmhof 15 42103 Wuppertal Germany Tel: 0202/49 37 00 Fax: 0202/45 13 66 The Debtor can be reached at: Backerei und Konditorei Melchiors GmbH Hauptstrasse 56 42651 Solingen Germany BALIBU MANAGEMENT: Claims Registration Period Ends July 13 ---------------------------------------------------------- Creditors of BALIBU Management GmbH have until July 13 to register their claims with court-appointed insolvency manager Wolf-R. von der Fecht. Creditors and other interested parties are encouraged to attend the meeting at 10:04 a.m. on July 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Krefeld Meeting Hall H 131 First Floor Nordwall 131 47798 Krefeld Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on Sept. 14, at the same venue. The District Court of Krefeld opened bankruptcy proceedings against BALIBU Management GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Wolf-R. von der Fecht Rheinort 1 40213 Duesseldorf Germany The Debtor can be reached at: BALIBU Management GmbH Frankenseite 85 47877 Willich Germany BAUSTOFFZENTRUM LEIMBACH: Claims Registration Period Ends May 29 ---------------------------------------------------------------- Creditors of Baustoffzentrum Leimbach GmbH have until May 29 to register their claims with court-appointed insolvency manager Klaus Siemon. Creditors and other interested parties are encouraged to attend the meeting at 12:30 p.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 Meiningen Meeting Hall A 0105 Lindenallee 15 Meiningen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Meiningen opened bankruptcy proceedings against Baustoffzentrum Leimbach GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Klaus Siemon Strasse der Nationen 51 09111 Chemnitz Germany The Debtor can be reached at: Baustoffzentrum Leimbach GmbH Attn: Heinrich, Gottfried, Manager Hermannsrodaer Str. 7 36433 Leimbach Germany BBS AUTOTEILE: Claims Registration Period Ends June 12 ------------------------------------------------------ Creditors of BBS Autoteile GmbH have until June 12 to register their claims with court-appointed insolvency manager Jobst Wellensiek. Creditors and other interested parties are encouraged to attend the meeting at 2:45 p.m. on June 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rottweil Area 201 Second Floor Branch Office Koernerstr. 20 78628 Rottweil Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on July 11, at the same venue. The District Court of Rottweil opened bankruptcy proceedings against BBS Autoteile GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Jobst Wellensiek Blumenstr. 17 69115 Heidelberg Germany Tel: 06221 / 91 18 - 0 Fax: 06221 / 23128 The Debtor can be reached at: BBS Autoteile GmbH Attn: Heinrich Baumgartner, Manager Welschdorf 220 77761 Schiltach Germany BBS KRAFTFAHRZEUGTECHNIK: Claims Registration Ends June 12 ---------------------------------------------------------- Creditors of BBS Kraftfahrzeugtechnik AG have until June 12 to register their claims with court-appointed insolvency manager Jobst Wellensiek. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on June 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rottweil Area 201 Second Floor Branch Office Koernerstr. 20 78628 Rottweil Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on July 11, at the same venue. The District Court of Rottweil opened bankruptcy proceedings against BBS Kraftfahrzeugtechnik AG on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Jobst Wellensiek Blumenstr. 17 69115 Heidelberg Germany Tel: 06221 / 91 18 - 0 Fax: 06221 / 23128 The Debtor can be reached at: BBS Kraftfahrzeugtechnik AG Attn: Heinrich Baumgartner, Manager Welschdorf 220 77761 Schiltach Germany BEFATEX GMBH: Claims Registration Ends June 26 ---------------------------------------------- Creditors of befatex GmbH have until June 26 to register their claims with court-appointed insolvency manager Hansjoerg Wanner. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 24, 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 Tuebingen Hall 208 Second Floor Branch Office Schulberg 14 72074 Tuebingen 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: Hansjoerg Wanner Unternehmensberatung Reutlinger Str. 105 72800 Eningen u.A. Germany Tel: 07121/383630 The District Court of Tuebingen opened bankruptcy proceedings against befatex GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: befatex GmbH Riedericher Strasse 80 72766 Reutlingen Germany BERGMANN AUTOMATEN: Claims Registration Ends May 31 --------------------------------------------------- Creditors of Bergmann Automaten GmbH have until May 31 to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 11:25 a.m. on July 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pinneberg Hall 3 First Floor Station Route 17 25421 Pinneberg 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 Decker Speersort 4-6 20095 Hamburg Germany The District Court of Pinneberg opened bankruptcy proceedings against Bergmann Automaten GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bergmann Automaten GmbH Adlerstr. 48-56 25462 Rellingen Germany BETONWERK VOLLAND: Claims Registration Ends May 21 -------------------------------------------------- Creditors of Betonwerk Volland GmbH have until May 21 to register their claims with court-appointed insolvency manager Dr. Tibor Braun. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on June 18, 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 Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn 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. Tibor Braun Kriegerstrasse 3 70191 Stuttgart Germany Tel: 0711/225583-0 Fax: 071/225583-20 The District Court of Heilbronn opened bankruptcy proceedings against Betonwerk Volland GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Betonwerk Volland GmbH Rodbachstrasse 31 74397 Pfaffenhofen Germany BLEILE BODENBELAGE: Claims Registration Ends June 5 --------------------------------------------------- Creditors of Bleile Bodenbelage Handels GmbH have until June 5 to register their claims with court-appointed insolvency manager Ingo Michelsen. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 26, 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 Loerrach Hall 4 Bahnhofstr. 4a 79539 Loerrach 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: Ingo Michelsen Luisenstr. 5 79539 Loerrach Germany Tel: 07621/4225 880 The District Court of Loerrach opened bankruptcy proceedings against Bleile Bodenbelage Handels GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bleile Bodenbelage Handels GmbH Oetlinger Str. 11 79539 Loerrach Germany COMCENTER HAMBURG: Claims Registration Ends June 25 --------------------------------------------------- Creditors of ComCenter Hamburg GmbH have until June 25 to register their claims with court-appointed insolvency manager Dr. Thilo Streck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 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 Hamburg Meeting Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Thilo Streck Neuer Wall 86 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against ComCenter Hamburg GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ComCenter Hamburg GmbH Attn: Walter Stahlschmidt, Manager Schillerstrasse 43 22767 Hamburg Germany CONVEY HAMBURG: Claims Registration Ends June 14 ------------------------------------------------ Creditors of Convey Hamburg GmbH have until June 14 to register their claims with court-appointed insolvency manager Christian Scholz. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on July 17, 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 Tostedt Meeting Hall I Area CE.02 Main Building Unter den Linden 23 21255 Tostedt 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: Christian Scholz Heuberg 1 20354 Hamburg Germany Tel: 040/3501690 Fax: 040/35016915 The District Court of Tostedt opened bankruptcy proceedings against Convey Hamburg GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Convey Hamburg GmbH Lessingstr. 10 21629 Neu Wulmstorf Germany Attn: Uwe Ginsberg, Manager Ernst-Heinkel-Str. 20 57299 Burbach Germany CPD AUTOTEILE: Claims Registration Ends June 13 ----------------------------------------------- Creditors of CPD Autoteile GmbH have until June 13 to register their claims with court-appointed insolvency manager Dr. Klaus Pannen. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on July 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 Meldorf Hall II Domstrasse 1 25704 Meldorf 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. Klaus Pannen Jungfernstieg 51 20354 Hamburg Germany Tel: 040/808136400 The District Court of Meldorf opened bankruptcy proceedings against CPD Autoteile GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CPD Autoteile GmbH Attn: Evangelos Zarmakoupis and Andre Heinrich, Managers Waldschloesschenstrasse 6 25746 Heide Germany DAIMLERCHRYSLER: Chrysler Launches Ad Campaign to Define Brand -------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group has unveiled a marketing campaign that includes TV and print ads featuring the new theme line "Engineered Beautifully," which emphasizes technology, fuel economy and value. "More than 80 percent of the Chrysler brand product portfolio is all-new or refreshed in the last 12 months with the recent introduction of the all-new 2008 Chrysler Sebring Convertible and the debut of the all-new 2008 Chrysler Town and Country later this year," said Chrysler Marketing and Global Communications Director David Rooney. "This is the perfect opportunity for us to showcase that there is more behind the sheet metal and distinctive style, and that every Chrysler possesses world-class quality and engineering at an extraordinary value." Additionally, the all-new 2008 Chrysler Sebring Convertible marketing campaign was launched on May 8. The Sebring Convertible ads mirror the tone and style of the new Chrysler brand creative. "Chrysler is, and always has been, a brand made by and built for people with a passion for great cars," said Mr. Rooney. "Products like the 300 and Town & Country put us at the forefront of the industry in terms of style and design. At the same time, we have made great strides to become competitive and even surpass our competition in terms of quality and engineering. While we have made great strides, the perception has not caught up with reality in the marketplace. Our new communications direction will help get that engineering message across." The television schedule features prime time network and cable shows such as Grey's Anatomy, Boston Legal, Ugly Betty, Dancing with the Stars, Conan O'Brien, The Tonight Show, NBA Playoffs, Big Break 7, Larry King, Anderson Cooper, Nancy Grace, Headline News, Law and Order CI, Law and Order SVU and Dog Whisperer. The ads will also appear on other channels including TNT, TBS, Food Network, Style Network, ESPN, CNBC, Fine Living Network, Bravo and The Golf Channel. The print ads follow the same creative direction for a consistent tone and message. Product is the star with bold photography on colorful backgrounds along with highlighted technology features. The Chrysler print ads will run in Automobile Magazine, Aspen Peak Magazine, Car and Driver, Food Wine, Forbes, Golf Digest, Golf For Women, Jet, Martha Stewart Everyday, Motor Trend, National Geographic, The New Yorker, Road and Track, Southern Accents, Sunset, Tennis Magazine, Traditional Home and Travel Leisure. In addition to the new advertising, the Chrysler brand will showcase the all-new Sebring Convertible through two programs done with Hearst and Forbes magazines. The Hearst Awaken Your Senses program includes advertising, web activity (http://www.awakenyoursenses.com),product displays and test drive components with the grand prize of an all-new 2008 Chrysler Sebring Convertible. The Chrysler brand is also the exclusive sponsor of one chapter of the Forbes 90th Anniversary Issue and Networking Special Report covering lifestyle elements surrounding careers, entertainment, leisure and design. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. E.N.D.E.R.E.S GMBH: Claims Registration Ends May 29 --------------------------------------------------- Creditors of E.N.D.E.R.E.S GmbH have until May 29 to register their claims with court-appointed insolvency manager Johanna Lehmann-Mayer. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 10, 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 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: Johanna Lehmann-Mayer Placidusstrasse 10 93047 Regensburg Germany Tel: 0941/73 046 Fax: 0941/700 971 The District Court of Regensburg opened bankruptcy proceedings against E.N.D.E.R.E.S GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: E.N.D.E.R.E.S GmbH Berliner Str. 41 a 93073 Neutraubling Germany ELMO ELEKTRO: Claims Registration Period Ends June 11 ----------------------------------------------------- Creditors of ElMo Elektro-Montage GmbH have until June 11 to register their claims with court-appointed insolvency manager Heinrich Stellmach. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court 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: Heinrich Stellmach Salierstrasse 4 46395 Bocholt Germany Tel: 02871/2183-0 Fax: +4928712183410 The District Court of Muenster opened bankruptcy proceedings against ElMo Elektro-Montage GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ElMo Elektro-Montage GmbH Ennepestrasse 3 46395 Bocholt Germany Attn: Thomas Venhorst, Manager Gneisenaustr. 7a 46395 Bocholt Germany FAHRRADWERK ENIK: Claims Registration Period Ends June 5 -------------------------------------------------------- Creditors of Fahrradwerk Enik GmbH have until June 5 to register their claims with court-appointed insolvency manager Bruno M. Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on July 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 Siegen Hall 009 Ground Floor Main Building Berliner Str. 21-22 57072 Siegen 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. Bruno M. Kuebler Aachener Str. 222 50931 Cologne Germany Tel: 0221/400770 Fax: 0221/4007720 Web site: http://www.kuebler-gbr.de/ The District Court of Siegen opened bankruptcy proceedings against Fahrradwerk Enik GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fahrradwerk Enik GmbH Severinusstr. 35 57482 Wenden Germany Attn: Dieter Schroeder, Manager Danziger Str. 8 51643 Gummersbach Germany H + D BAU: Claims Registration Period Ends June 12 -------------------------------------------------- Creditors of H + D Bau GmbH have until June 12 to register their claims with court-appointed insolvency manager Betriebswirt Uwe Miehe. Creditors and other interested parties are encouraged to attend the meeting at 11:05 a.m. on July 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 Magdeburg Breiter Weg 203 - 206 39104 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: Betriebswirt Uwe Miehe Koenigstrasse 17 39116 Magdeburg Germany Tel: 0391/5971240 Fax: 0391/5971241 The District Court of Magdeburg opened bankruptcy proceedings against H + D Bau GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H + D Bau GmbH Attn: Volkmar Pardall, Manager Krumme Str. 9 a 39345 Buelstringen Germany HEIDELBERGCEMENT AG: Reviews Options in Hanson Acquisition Plan --------------------------------------------------------------- HeidelbergCement AG has disclosed its interest in bidding for U.K. building materials company Hanson PLC through a notification recently posted on the German cement maker's Web site, saying it "is currently reviewing its options with respect to its interest in Hanson, including the possibility of seeking to acquire the company." Heidelberg warned, however, "there can be no certainty that an acquisition will result or what the terms of such an acquisition may be." The two companies are understood to have held informal discussions but no formal bid has yet been tabled. A firm approach is expected within days, The Financial Times reports. The German company was forced to confirm its intention following a considerable rise in Hanson's share price over the past few days. Hanson's shares jumped 20% to close at GBP10.25 per share, valuing the company at GBP7.32 billion, published reports state. It is believed Heidelberg could bid as much as GBP11.50 per share for Hanson, higher than its share price before bid speculation began, Telegraph.co.uk suggests. An actual offer from Heidelberg could well flush out other bidders, including French cement giant Lafarge and Mexican company Cemex, pegged as the most likely counter-bidders by analysts, reports say. Hanson reported pretax profit of GBP480.8 million for 2006 and said it expects strong price increases to continue into 2007. Some analysts have expressed concern about Hanson's asbestos liabilities in the U.S., which cost US$54.5 million last year. Hanson's North American operations account for about half of group sales, the Wall Street Journal relates. About Hanson PLC London-based Hanson PLC -- http://www.hanson.co.uk/-- supplies heavy building materials and services to residential, infrastructure, and industrial and commercial construction sectors. About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG -- http://www.heidelbergcement.com/-- produces cement as well as building materials and building chemicals. The group's fiscal 2006 net income amounted to EUR414.5 million on EUR9.23 billion net sales. * * * Moody's Investors Service upgraded the issuer and senior unsecured ratings of HeidelbergCement AG and its guaranteed finance subsidiaries HeidelbergCement Finance BV and HeidelbergCement Financial Services AB to Baa3 from Ba1. M-TEC TEXTILMASCHINEN: Claims Registration Period Ends July 16 -------------------------------------------------------------- Creditors of m-tec Textilmaschinen GmbH have until July 16 to register their claims with court-appointed insolvency manager Michael Bremen. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 16, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Room A 58 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach 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: Michael Bremen Sternstrasse 58 40479 Duesseldorf Germany Tel: 0211 / 491440 Fax: +492114914461 The District Court of Moenchengladbach opened bankruptcy proceedings against m-tec Textilmaschinen GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: m-tec Textilmaschinen GmbH Kampweg 40 41751 Viersen Germany Attn: Roland Wefers, Manager Ulmenweg 21 41379 Brueggen Germany NAZZARO PUTZ: Claims Registration Period Ends July 9 ---------------------------------------------------- Creditors of Nazzaro Putz- und Farben GmbH have until July 9 to register their claims with court-appointed insolvency manager Holger Bluemle. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jully 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 Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Str. 28 Ludwigsburg 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: Holger Bluemle Koenigstr. 10 C 70173 Stuttgart Germany Tel: 0711/782-8162 The District Court of Ludwigsburg opened bankruptcy proceedings against Nazzaro Putz- und Farben GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Nazzaro Putz- und Farben GmbH Attn: Nazzareno Nazzaro, Manager Felsenbergweg 13 71701 Schwieberdingen Germany SCHWERTNER & PARTNER: Claims Registration Period Ends May 31 ------------------------------------------------------------ Creditors of Dr. Schwertner & Partner GmbH have until May 31 to register their claims with court-appointed insolvency manager Immo Hamer von Valtier. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on June 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 Hameln Hall 106 Zehnthof 1 31785 Hameln 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: Immo Hamer von Valtier Rathenaustrasse 13/14 30159 Hannover Germany Tel: 0511 / 16962-21 Fax: 0511 / 16962-23 E-mail: ImmoHamer@gmx.de The District Court of Hameln opened bankruptcy proceedings against Dr. Schwertner & Partner GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dr. Schwertner & Partner GmbH Attn: Dr. Wolfgang W. Schwertner, Manager Brink 1c 30974 Wennigsen Germany UNTERNEHMENSBERATUNG GMBH: Claims Registration Ends July 2 ---------------------------------------------------------- Creditors of Dr. Zeising Unternehmensberatung GmbH have until July 2 to register their claims with court-appointed insolvency manager Dr. Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 10:06 a.m. on Aug. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 14 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Nerlich Aachener Str. 563-565 50933 Koeln Germany The District Court of Cologne opened bankruptcy proceedings against Dr. Zeising Unternehmensberatung GmbH on April 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mueller-Klement. Dr. Zeising Unternehmensberatung GmbH Attn: Georg Mueller-Klement, Manager Rehfurt 18 51107 Koeln Germany WMH - MODEVERTRIEB: Claims Registration Period Ends July 15 ----------------------------------------------------------- Creditors of WMH - Modevertrieb GmbH have until June 15 to register their claims with court-appointed insolvency manager Juergen Sulz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 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 Tuebingen Hall 208 Second Floor Branch Office Schulberg 14 72074 Tuebingen 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: Juergen Sulz Rommelsbacher Str. 27 72760 Reutlingen Germany The District Court of Tuebingen opened bankruptcy proceedings against WMH - Modevertrieb GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WMH - Modevertrieb GmbH Attn: Alfred Mayer, Manager Carl-Zeiss-Str. 5 72555 Metzingen Germany ============= I R E L A N D ============= SCOTTISH RE: S&P Lifts Credit Rating to B+ on Equity Investment --------------------------------------------------------------- Standard & Poor's Ratings Services raised its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'B' and removed it from CreditWatch with developing implications, where it was placed on Dec. 6, 2006. Standard & Poor's also said that it raised its counterparty credit and financial strength ratings on Scottish Re's operating companies as well as its ratings on dependent unwrapped securitized deals related to Scottish Re to 'BB+' from 'BB' and removed them from CreditWatch developing. The outlook on Scottish Re and its operating companies is developing. In addition, Standard & Poor's affirmed its ratings on securitizations that are wrapped or independent of the credit quality of Scottish Re. "The upgrades reflect the completed transaction with MassMutual Capital Partners LLC and affiliates of Cerberus Capital Management L.P.," explained Standard & Poor's credit analyst Neil T. Strauss. In this transaction, an equity investment of US$600 million was obtained in exchange for a 68.7% stake in Scottish Re. After the repayment of a liquidity facility and other expenses, the proceeds provide Scottish Re with strong capital and good liquidity for the in-force business. "The upgrades also reflect that virtually all of the company's level term policies subject to Regulation XXX reserve requirement will soon be pre-funded with respect to collateral needs," Mr. Strauss added. The transaction significantly improves Scottish Re's financial condition and settles much of the financial-related uncertainty that has plagued the company since last summer. However, we expect that earnings will remain sub-par over the near term, as underlying profitability will take time to emerge, and several nonrecurring items will be recorded. The company posted an after-tax US$377 million loss in 2006. On the business side, the company has been able to maintain the third-largest market position in U.S. life reinsurance market for in-force business as of Dec. 31, 2006. Nevertheless, selling new reinsurance business will be challenging as the company looks to regain its credibility in the market. The company has begun to address the issues of weak enterprise risk management as it improves its inadequate operational processes, which led to earnings surprises over the past several quarters. Corporate governance will benefit from a renewed focus from a new board of seasoned executives under a new structure, which should provide a strong oversight role. The developing outlook means that the ratings could go up, stay the same, or go down in the short to medium term. S&P will likely raise the ratings if operational issues are resolved such that earnings volatility decreases, new sales grow, and management is able to provide leadership to the company and thereby recover from the events of the past several quarters. If financial management remains strong but sales and earnings are stagnant, the ratings will likely remain unchanged. If earnings volatility remains high, revenue growth remains low, and management is unable to refocus the company on consistent, profitable growth, the ratings will probably be lowered. Standard & Poor's expects Scottish Re's capital to remain strong. Liquidity should remain good. ========= I T A L Y ========= DANA CORP: Wants Section 1113/1114 Ruling Deferred Until May 31 --------------------------------------------------------------- Dana Corp. and its debtor-affiliates, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and the United Steelworkers delivered to the United States Bankruptcy Court a joint letter asking the Hon. Burton Lifland to defer ruling on their Section 1113/1114 disputes until May 31, 2007. Judge Lifland previously said that he would rule on the labor disputes by the end of April. The Debtors and the Unions stated in the joint letter that the extension is needed "in light of ongoing discussions" between them. On the other hand, Judge Lifland approved the settlement between the Debtors and the International Association of Machinists and Aerospace Workers Union, wherein the Debtors agreed to allocate $2,250,000 to resolve all IAMAW claims. 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 CORP: Wants Open-Ended Deadline to Remove Court Actions ------------------------------------------------------------ Dana Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to further extend the time by which they may file notices of removal with respect to any actions to federal court under Section 1452 of the Judicial Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy Procedure until the date a plan of reorganization is confirmed. The Debtors seek that the Removal Period Extension be without prejudice to: (a) any position they may take regarding whether Section 362 of the Bankruptcy Code applies to stay any Actions; and (b) their right to seek further extensions of time to remove all Actions. The Debtors continue to require more time to decide whether the possible removal of any of the Actions would promote their interests in the context of their overall restructuring process, Corinne Ball, Esq., at Jones Day, in New York, tells the Court. Ms. Ball relates that the Debtors are currently focused on a host of key reorganization and business activities, including developing a reorganization plan. Developing a reorganization plan would entail attending to numerous and significant tasks like completing the divestitures of certain businesses and assets, securing the profit improvements from the various "Restructuring Initiatives," refining the Debtors' business plan, completing their proceedings under Sections 1113 and 1114 of the Bankruptcy Code, and determining the proper capital structure of the Reorganized Debtors. The Debtors are also reviewing and analyzing more than 15,000 claims filed against them, Ms. Ball adds. The Debtors aim to efficiently and timely resolve all the disputed claims. Ms. Ball contends that the outcome of the claim review and analysis bears directly on the Debtors' decision whether to remove the Actions. Moreover, the Debtors must oversee and implement the day-to-day operation of their businesses as debtors-in-possession. Given the current distress in the U.S. automotive industry, this task cannot be underestimated, Ms. Ball asserts. Because of the reasons stated, the Debtors have not yet reached the point where they can make final decisions relating to the potential removal of the Actions, Ms. Ball says. 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. DRESSER INC: Riverstone-Led Consortium Completes Takeover --------------------------------------------------------- Dresser, Inc. disclosed that a consortium led by Riverstone Holdings LLC has completed the previously announced acquisition of the company. The company also announced that John P. Ryan, president and chief operating officer, is replacing Patrick M. Murray as chief executive officer. Mr. Murray retired from his position effective with the completion of the sale. "The change in ownership of Dresser will be transparent to our customers and employees-it's business as usual," said Mr. Ryan. "The Dresser name has been synonymous with the energy industry for more than a hundred years, and our global presence, strong brands and long-time reputation for reliability and service in the energy industry will continue to serve us well in the future. Our new owners have considerable experience and insights into the energy industry worldwide, and we look forward to benefiting from the expertise they bring." Riverstone is joined by First Reserve and Lehman Brothers Co- Investment Partners in the investor group. First Reserve previously acquired Dresser in 2001 in partnership with Odyssey Investment Partners and is investing in the current transaction through its recently formed First Reserve Fund XI, L.P. Riverstone is investing through its Carlyle/Riverstone Global Energy and Power Fund III, L.P. The terms of the transaction were not disclosed. Commenting on his retirement, Mr. Murray noted, "Dresser is well positioned to continue as a worldwide leader in the design, manufacture and marketing of energy infrastructure equipment. John's promotion is decidedly well deserved. His commitment to continuous improvement, dedication to Dresser employees and focus on the customer will serve the company well in the years to come." Mr. Ryan was appointed president and chief operating officer of Dresser in December 2004. He had previously served as president of Dresser Wayne, the largest division of Dresser and a worldwide leader in the retail fueling industry, from 1999 to 2005. Prior to joining Dresser Wayne in 1987 as national accounts sales manager, he served in various international and domestic sales positions for Goulds Pumps Inc. About Riverstone Holdings LLC and The Carlyle Group Riverstone Holdings LLC and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds. Riverstone, a New York-based energy and power focused private equity firm founded in 2000, has US$8.1 billion under management. Riverstone conducts buyout and growth capital investments in the midstream, upstream, power, oilfield services, and renewable sectors of the energy industry. To date, the firm has committed more than US$5.5 billion to more than 36 investments across each of these five sectors, representing companies with nearly US$40 billion of assets. The Carlyle Group is a global private equity firm with US$56 billion under management. Carlyle invests in buyouts, venture and growth capital, real estate and leveraged finance in North America, Europe and Asia. Since 1987, the firm has invested US$26.4 billion of equity in 601 transactions. About Dresser, Inc. Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide including Brazil, Germany, Italy, Mexico, Puerto Rico and Switzerland. * * * As reported in the Troubled Company Reporter-Europe on April 18, Standard and Poor's Ratings Services affirmed its 'B' corporate credit rating on Dresser Inc., based on the expectation that the company's debt leverage will improve, following its acquisition, to levels consistent with the ratings over the medium term. The outlook is negative. At the same time, the ratings on Dresser were removed from CreditWatch with developing implications, where they were placed on March 12, 2007. Standard & Poor's also assigned its 'B' rating and '2' recovery rating (indicating the expectation of substantial (80%-100%) recovery of principal in the event of a payment default) to Dresser's proposed US$1.3 billion first-lien bank facilities, and its 'CCC+' rating and '5' recovery rating (indicating the expectation of negligible (0%-25%) recovery of principal in the event of a payment default) to Dresser's proposed US$750 million second-lien bank facilities. TEKSID ALUMINUM: Moody's Confirms Junk Ratings ---------------------------------------------- Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. This rating action concludes the review with direction uncertain initiated on Nov. 3, 2006 following the company's announcement that it has entered into a definitive agreement to sell certain core assets to Tenedora Nemak, S.A. de C.V and the intention of a redemption of outstanding debt with the proceeds of the asset disposal; the review was maintained following the last rating action on Jan. 16, 2007, when the ratings were downgraded by two notches to Caa3/Ca. At that time, the downgrade by two notches reflected the company's inability to make the interest payment due on the 11-3/8% Senior Notes and its breach of certain financial covenants of its bank facility in the fourth quarter of 2006 as a result of a further deterioration of Teksid's operating performance. While the downgrade also reflected the likelihood that recovery rates of the senior notes could be substantially lower than initially anticipated, the review with an uncertain direction also indicated the possibility of a significant variance in recovery values that could either improve the bond rating to Caa3 or weaken it to C. The rating confirmation with a stable outlook reflects the progress achieved in the asset disposal process over the last months, including: (1) an agreement on revised terms for the Nemak sale, (2) the consent of the bondholders achieved to permit the sale of certain assets and operations to Nemak, (3) continuation of the asset disposal process including disposal of plants in North and South America, and Poland, following respective regulatory approvals, (4) the partial redemption of the company's other financial and operating liabilities, (5) a successful tender offer for up to EUR35 million aggregate principal amount and accrued interest of its outstanding EUR240 million senior notes. The Ca rating for the senior notes reflects an expected recovery value range between 10-50%, which now can be determined with a higher level of certainty. The recent tender offer for around 15% of the outstanding notes reflects the minimum recovery value achieved for the notes. The upper recovery boundary is likely to be at around 50%, considering the company's estimate for a maximum final recovery of around 50% for the notes, which could further increase due to a 5.5% synthetic equity interest in the Nemak business but could be negatively affected by the continuous needs to fund ongoing losses of the underlying operations, working capital needs, capital expenditures, restructuring costs until disposal of the remaining businesses. Outlook Actions: * Issuer: TK Aluminum Ltd -- Outlook, Changed To Stable From Rating Under Review * Issuer: Teksid Aluminum Luxembourg Sarl SCA -- Outlook, Changed To Stable From Rating Under Review Confirmations: * Issuer: TK Aluminum Ltd -- Corporate Family Rating, Confirmed at Caa3 * Issuer: Teksid Aluminum Luxembourg Sarl SCA -- Senior Unsecured Regular Bond/Debenture, Confirmed at Ca The stable outlook takes into account that positive rating developments mainly depend on recovery rates, which would need to be substantially above expectations for current ratings. TK Aluminum Ltd, a Bermuda-based company with corporate offices in Carmagnola, Italy, is a leading global supplier of aluminium casting components for the automotive industry worldwide. For the twelve months ended Dec. 31, 2005 the company generated net revenues of EUR1 billion. =================== K A Z A K H S T A N =================== AIBEK COMPANY: Creditors Must File Claims by May 29 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aibek Company insolvent. Creditors have until May 29 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktube Kazakhstan ALCOM LTD: Creditors' Claims Due June 1 --------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Tef Alcom Ltd insolvent. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Timiryazev Str. 61-2 Almaty Kazakhstan Tel: 8 (3272) 75-67-84 ECONOM EXPRESS: Proof of Claim Deadline Slated for May 29 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Nd Econom Express insolvent. Creditors have until May 29 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktube Kazakhstan FIRM KAZKOR: Claims Registration Ends June 2 -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Firm Kazkor insolvent. Creditors have until June 2 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Radostovtsa Str. 47-11 Almaty Kazakshtan Tel: 8 701 558 34-19 JALGAS-AGRO LLP: Claims Filing Period Ends June 13 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Jalgas-Agro insolvent. Creditors have until June 13 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan KAZKOMMERTSBANK JSC: Re-brands Retail Banking Arm as Kazkom ----------------------------------------------------------- JSC Kazkommertsbank disclosed the re-branding of its retail banking arm as "Kazkom". The re-branding coincides with the launch of a branch modernization program and reflects the general trend amongst its customers to refer to the bank as "Kazkom". As part of the Bank's expansion program, KKB also plans to open up to 80 new branches throughout the Republic during the course of 2007. Kazkom will continue to expand the banking products available to its retail customers including the development of Internet banking services. "The re-branding of our retail branch network reflects our commitment to develop our network and service range in order to provide our retail customers with the best experience possible. We are extremely well positioned to continue to grow market share in a rapidly expanding market," Andrey Timchenko, Managing Director of the Bank, stated. About Kazkommertsbank Established in 1990, Kazkommertsbank is one of the leading banks in Kazakhstan. As at June 30, 2006, it was the market leader as measured by total assets and loans and third largest in terms of deposits. The Bank has a network of 22 full-service branches and 68 outlets in Kazakhstan. In addition, the Bank has a well- developed alternative channel distribution network including Internet banking, 454 ATMs, over 3,200 point-of-sale terminals and a call center. With a gross corporate loan portfolio of KZT837.3 billion and deposits of KZT204.97 billion as of June 30, 2006, Kazkommertsbank is the largest corporate lender in Kazakhstan. In addition, the Bank also has a strong retail business and believes that it is the leading bank in Kazakhstan servicing high net-worth individuals. As at June 30, 2006, the Bank had approximately 253,000 retail customers, a gross retail loan portfolio of KZT129.14 billion and retail deposits of KZT128.87 billion. In addition to corporate, SME and retail banking services, the Bank engages in treasury operations, investment banking, brokerage services and asset management and is a major participant in the securities markets and the foreign currency markets in Kazakhstan. Through its international subsidiaries, KKB also provides corporate, SME and retail banking services in Russia and Kyrgyzstan. The bank has a number of subsidiaries, including two in Kazakhstan: Kazkommerts Securities and Kazkommertspolicy 2000; three in the Netherlands: Kazkommerts International B.V., Kazkommerts Capital-2 B.V. and Kazkommerts Finance-2 B.V., and one in Kyrgyzstan: Kazkommertsbank Kyrgyzstan. * * * As reported in the TCR-Europe on Feb. 21, Fitch Ratings affirmed Kazakhstan-based Kazkommertsbank's ratings at foreign currency Issuer Default 'BB+', Short-term foreign currency 'B', local currency Issuer Default 'BBB-', Short-term local currency 'F3', Individual 'C/D' and Support '3'. Fitch said The Outlook on the foreign currency Issuer Default rating remains Positive and that on the local currency IDR Stable. KOKSHETAUSKY HLEBOZAVOD: Creditors Must File Claims by June 1 ------------------------------------------------------------- LLP Kokshetau Bread Factory Kokshetausky Hlebozavod has declared insolvency. Creditors have until June 1 to submit written proofs of claim to: LLP Kokshetau Bread Factory Kokshetausky Hlebozavod Pushkin Str. 31 Kokshetau Akmola Kazakhstan KURYLYS CONSULTING: Creditors' Claims Due June 1 ------------------------------------------------ Almatinsky Regional Branch of JSC National Centre Kurylys Consulting has declared insolvency. Creditors have until June 1 to submit written proofs of claim to: JSC National Centre Kurylys Consulting Office 28 Shevchenko Str. 134 Taldykorgan Almaty Kazakhstan NURKAZGAN-SERVICE LLP: Proof of Claim Deadline Slated for June 1 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Nurkazgan-Service insolvent. Creditors have until June 2 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakshtan RULAND ALMATY: Claims Registration Ends June 1 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Ruland Almaty insolvent. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Timiryazev Str. 61-2 Almaty Kazakhstan Tel: 8 (3272) 75-67-84 VIVALITY 20: Claims Filing Period Ends June 2 --------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Vivality 20 insolvent. Creditors have until June 2 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Radostovtsa Str. 47-11 Almaty Kazakshtan Tel: 8 701 558 34-19 =================== K Y R G Y Z S T A N =================== INTORGSINTEZ LLC: Creditors' Meeting Slated for May 25 ------------------------------------------------------ Creditors of LLC Intorgsintez will convene at 11:00 a.m. on May 25 at: Room 4 Pobeda Ave. 357 Lebedinovka Alamudunsky District Chui Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Intorgsintez (Case No. ED-232/07 mbs1) insolvent on March 20. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The temporary insolvency manager is: Suyunbai Mailybaev Tel: (0-503) 49-44-21 MOBINDA LLC: Creditors Must File Claims by June 20 -------------------------------------------------- LLC Mobinda (INN 00903200510053) has declared insolvency. Creditors have until June 20 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 65-58-58. ===================== N E T H E R L A N D S ===================== GLOBAL POWER: Court Extends Excl. Plan Filing Period to May 17 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered a second bridge order extending Global Power Equipment Group Inc. and its debtor-affiliates' exclusive periods to: a) file a plan until a hearing set for May 17, 2007; and b) solicit acceptances of that plan until July 17, 2007. The Court's first bridge order, issued last month, extended the Debtors' exclusive period to file a plan until May 2, 2007. In their motion, the Debtors requested an August 24, 2007 extension of their exclusive period to file a plan. The Debtors told the Court that they have continued to make substantial progress in addressing major issues facing their estates, including: a) stabilizing each of the Debtors' major business segments and developing new business opportunities; b) addressing issues regarding the wind down of Deltak LLC and Deltak Construction Services Inc.'s heat recovery steam generation business segment; c) reaching additional accommodation agreements with key customers; and d) developing a five-year business plan, which was recently presented to the Debtors' Official Committee of Unsecured Creditors. Notwithstanding the substantial progress to date, the Debtors explained that a significant amount of work remains to be done before they will be able to propose a plan consistent with their fiduciary duties to maximize value, including, inter alia, the refinement and testing of their business plan, evaluation and reconciliation of claims filed against them, and an analysis of their intercompany assets and liabilities. Moreover, the Debtors said they continue to meet with the Committee on a regular basis, and in anticipation of preparing a chapter 11 plan of reorganization, are now preparing a plan term sheet, which they intend to share with the Committee in the near future. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. GLOBAL POWER: Court Extends Consulting Pacts with Ex Executives --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved Global Power Equipment Group Inc. and its debtor-affiliates' request for extension of their consulting agreements, as modified, with their former executives -- Larry Edwards and James P. Wilson -- for an additional six months commencing on April 15, 2007. Last month, the Court entered a bridge order extending the Consulting Agreements until May 2, 2007. The Official Committee of Unsecured Creditors consented to both extensions. In their request, the Debtors told the Court that they need Messrs. Edward's and Wilson's services particularly in relation to the continuing transition in senior management of the Debtors. Although their full-time services are no longer required, the Debtors explained that the consulting agreements provide the Debtors with the flexibility to continue to take advantage of Messrs. Edward's and Wilson's significant experience and expertise in a manner that will provide significant benefits to the Debtors' estates while minimizing costs. Effective Nov. 21, 2006, Mr. Edwards resigned from his officer position as president and chief executive officer of the Debtors. He continues to serve as a non-executive member of Global Power's Board of Directors. Also effective Nov. 21, 2006, Mr. Wilson resigned from his officer position as vice president of finance and chief financial officer of Global Power. Mr. Wilson joined the company in 1986. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. =========== R U S S I A =========== ABZELIL-SEL-ENERGO: Creditors Must File Claims by May 14 -------------------------------------------------------- Creditors of LLC Abzelil-Sel-Energo (TIN 0201001734) have until May 14 to submit proofs of claim to: F. Khabirov Temporary Insolvency Manager Frunze Str. 5 Krasnousolsk Gafurijskiy 453050 Bashkortostan Russia The Arbitration Court of Bashkortostan will convene on July 10 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A07-18162/06-G-FLE. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Abzelil-Sel-Energo Abzelilovskiy Bashkortostan Russia ALFA OJSC: Creditors Must File Claims by May 14 ----------------------------------------------- Creditors of OJSC Alfa have until May 14 to submit proofs of claim to: A. Kochetkov Insolvency Manager Sennaya Square 15 603024 Nizhnij Novgorod Russia The Arbitration Court of Samara commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-17622/2006. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 Samara Russia The Debtor can be reached at: A. Kochetkov Insolvency Manager Sennaya Square 15 603024 Nizhnij Novgorod Russia APSHERONSK-AGRO-TEKH-SNAB: Creditors Must File Claims by June 14 ---------------------------------------------------------------- Creditors of declared OJSC Apsheronsk-Agro-Tekh-Snab have until June 14 to submit proofs of claim to: A. Tsikunib Insolvency Manager Kommunisticheskaya Str. 32/2 385200 Adygeysk Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-21487/2006-44/2004-B. The Court is located at: The Arbitration Court of Krasnodar Staroderevenkovskaya St. Krasnodar Russia The Debtor can be reached at: OJSC Apsheronsk-Agro-Tekh-Snab Proletarskaya Str. 201 Apsheronsk 352690 Krasnodar Russia COUNTRY-HALL OJSC: Creditors Must File Claims by May 14 ------------------------------------------------------- Creditors of OJSC Country-Hall (TIN 761203362, OGRN 1047602011786) have until May 14 to submit proofs of claim to: E. Federova Temporary Insolvency Manager To be Called for Ms. E.Fedorova 125009 Moscow Russia The Arbitration Court of Murmansk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A82-1080/07-3-B/7. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: OJSC Country-Hall Office 430 Yaroslavskaya Str. 50 Uglich 152612 Yaroslavl Russia DIARY LLC: Creditors Must File Claims by May 14 ----------------------------------------------- Creditors of LLC Diary (TIN 02530000812) have until May 14 to submit proofs of claim to: A. Lisitsa Insolvency Manager Post User Box 26 Ufa-61 450061 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-20911/06-G-MOG. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: A. Lisitsa Insolvency Manager Post User Box 26 Ufa-61 450061 Bashkortostan Russia GAS COMPANY: Creditors Must File Claims by May 14 ------------------------------------------------- Creditors of LLC Gas Company have until May 14 to submit proofs of claim to: P. Galkin Insolvency Manager Office 14 Federatsii Str. 105 432063 Ulyanovsk Russia The Arbitration Court of Ulyanovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-1058/06-20/18-B. The Debtor can be reached at: LLC Gas Company Ulyanovsk Russia HYDROLYZE FACTORY: Asset Bidding Deadline Slated for May 16 ----------------------------------------------------------- M. Fedorov, the bidding organizer for OJSC Hydrolyze Factory, will open a public auction for the company's properties at 9:00 a.m. on May 23 at: M. Fedorov Office 214 Troitskiy Pr. 65 Arkhangelsk Russia The company has set a RUR36.5 million starting price for the auctioned assets. Interested participants have until May 16 to deposit an amount of RUR7.3 million to: OJSC Hydrolyze Factory Settlement Account 40702810354000000817 Correspondent Account 30101810000000000756 BIK 041117756 OJSC Uralsib Arkhangelsk Russia Bidding documents must be submitted to: M. Fedorov Office 214 Troitskiy Pr. 65 Arkhangelsk Russia Tel: +7-921-814-86-21, +8-911-55-134-36, +7-921-721-31-84 The Debtor can be reached at: OJSC Hydrolyze Factory Lenina Pr. 217 Onega 164840 Arkhangelsk Russia KHABAROVSKIY FACTORY: Asset Sale Slated for May 15 -------------------------------------------------- KGU Fund of Property of Khabarovsk, the bidding organizer for OJSC Khabarovskiy Factory of Metalware, will open a public auction for the company's properties at 11:00 a.m. on May 15 at: KGU Fund of Property of Khabarovsk Zaparina Str. 76 Khabarovsk Russia The company has set a RUR6,760,800 starting price for the auctioned assets. Interested participants have until May 14 to deposit an amount equivalent to 5% of the starting price to: KGU Fund of Property of Khabarovsk Settlement Account 40603810700000000021 Correspondent Account 30101810600000000718 BIK 040813718 TIN 2721083857 KPP 272101001 CB Dalkombank Khabarovsk Russia Bidding documents must be submitted to: KGU Fund of Property of Khabarovsk Zaparina Str. 76 Khabarovsk Russia The Debtor can be reached at: KGU Fund of Property of Khabarovsk Room 1412 Zaparina Str. 76 Khabarovsk Russia META OJSC: Creditors Must File Claims by May 14 ----------------------------------------------- Creditors of OJSC Meta have until May 14 to submit proofs of claim to: G. Kazakbaev Temporary Insolvency Manager O. Tikhomirovoj Str. 59 Yoshkar-Ola 424031 Mariy El Russia The Arbitration Court of Mariy El will convene at 10:00 a.m. on July 19 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A-38-360-11/37-2007. The Court is located at: The Arbitration Court of Mariy El Lenina Pr. 40 Yoshkar-Ola, Mariy El Russia The Debtor can be reached at: OJSC Meta Okhotina Str. 3 Zvenogovo Zvenigoeskiy 425060 Mariy El Russia NAFTATRANS CJSC: Creditors Must File Claims by May 14 ----------------------------------------------------- Creditors of CJSC Naftatrans have until May 14 to submit proofs of claim to: G. Aristov Insolvency Manager Gilyarovskogo Str. 31 107996 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-14537/06-95-67B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: G. Aristov Insolvency Manager Gilyarovskogo Str. 31 107996 Moscow Russia POLIEL CJSC: Creditors Must File Claims by May 14 ------------------------------------------------- Creditors of CJSC Poliel (TIN 5262102760) have until May 14 to submit proofs of claim to: M. Udaltsova Temporary Insolvency Manager Post User Box 59 603086 Nizhniy Novgorod Russia The Arbitration Court of Nizhniy Novgorod will convene at 1:00 p.m. on Aug. 21 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A64-941/07-21. The Court is located at: The Arbitration Court of Nizhniy Novgorod Kremlin 9 603082 Nizhniy Novgorod Russia The Debtor can be reached at: CJSC Poliel Genkinoj Str. 102 Nizhniy Novgorod Russia PROMSVYAZBANK: Fitch Affirms B+ IDR with Stable Outlook ------------------------------------------------------- Fitch Ratings revised Russia-based Promsvyazbank's Outlook to Stable from Positive. The bank's ratings are affirmed at Issuer Default 'B+', Short-term 'B', Support '5' and Individual 'D'. The change in Outlook reflects the reduced likelihood that German-based Commerzbank AG, will acquire a majority stake in PSB following recent statements by Commerzbank representatives. Fitch initially assigned the Positive Outlook in December 2006, after Commerzbank completed the acquisition of a 15% stake in PSB and was expected to continue negotiations with PSB's main shareholders to seek control in the medium-term. PSB's ratings reflect significant balance sheet concentrations and risks inherent in the bank's rapid loan growth, which may also put pressure on liquidity and capitalization levels. However, Fitch also acknowledges the broadening of PSB's franchise and regional coverage, improved funding profile and reduced related-party exposures and non-core assets. The ratings are also supported by the bank's acceptable profitability and asset quality to date. PSB is one of the largest Russian privately held banks and is majority-owned by the Ananiev brothers. PSB mainly serves large and mid-sized corporate clients. It has built a network of more than 140 points-of-sale across Russia to facilitate an ongoing regional diversification and franchise expansion into the retail and SME segments. SHAKHUNSKIY WOOD-PROM-KHOZ: Creditors Must File Claims by May 14 ---------------------------------------------------------------- Creditors of LLC Shakhunskiy Wood-Prom-Khoz (TIN 5239007501) have until May 14 to submit proofs of claim to: A. Tigulev Insolvency Manager Beketova Str., 38a 603146 Nizhniy Novgorod Russia Tel: 12-21-62 The Arbitration Court of Nizhniy Novgorod commenced bankruptcy proceedings against the company after finding it insolvent. The Court is located at: The Arbitration Court of Nizhniy Novgorod Kremlin 9 603082 Nizhniy Novgorod Russia The Debtor can be reached at: LLC Shakhunskiy Wood-Prom-Khoz Osipenko Str. 61 Shakhunya Nizhniy Novgorod Russia SHIP AND MECHANICAL: Creditors Must File Claims by June 14 ---------------------------------------------------------- Creditors of declared CJSC Ship and Mechanical Plant have until June 14 to submit proofs of claim to: A. Kurochkin Insolvency Manager Post User Box 7 Naberezhnye Chelny 423815 Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-15914/2006-SG4-39. The Court is located at: The Arbitration Court of Tatarstan Room 12, Floor 2 Entrance 2, Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: CJSC Ship and Mechanical Plant Pionerskaya Str. 1 422983 Tatarstan Russia TAGIL-VODKA JSC: Creditors Must File Claims by June 14 ------------------------------------------------------ Creditors of declared OJSC Tagil-Vodka (TIN 6623000803) have until June 14 to submit proofs of claim to: Y. Moskalenko Insolvency Manager Post User Box 99 620131 Ekaterinburg Russia The Arbitration Court of Sverdlovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-33950/06-S11. The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: OJSC Tagil-Vodka Industrialnaya Str. 3 N. Tagil Sverdlovsk Russia YUBILEYNYJ OJSC: Asset Bidding Deadline Slated for May 18 --------------------------------------------------------- OJSC Institute of Anti-Crisis Management, the bidding organizer for OJSC YUBILEYNYJ, will open a public auction for the company's properties at 11:00 a.m. on May 29. The company has set a RUR3.68 million starting price for the auctioned assets. Interested participants have until May 18 to deposit an amount equivalent to 20% of the starting price to: OJSC Yubileynyj Settlement Account 40702810439120100422 Correspondent Account 30101810100000000615 BIK 048952615 Mordovskiy OSB 8589 Russia Bidding documents must be submitted to: OJSC Institute of Anti-Crisis Management N. Krupskoj Str. 29 Saransk 430000 Mordoviya Russia The Debtor can be reached at: OJSC Yubileynyj Brovtseva Str. 136 Dubenki Dubenskiy Mordoviya Russia TUYMAZY-MEAT LLC: Creditors Must File Claims by June 14 ------------------------------------------------------- Creditors of declared LLC Tuymazy-Meat have until June 14 to submit proofs of claim to: N. Bortnikov Insolvency Manager Post User Box 1780 Solikamsk-13 618553 Perm Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-320/05-G-ADM/NLV. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Tuymazy-Meat Severnaya Str. 1 Tuymzay 452750 Bashkortostan Russia UEMSKIY CERAMIC: Asset Sale Slated for May 30 --------------------------------------------- O. Smirnov, the insolvency manager and bidding organizer for OJSC Uemskiy Ceramic Factory, will open a public auction for the company's properties at noon on May 30 at: O. Smirnov Popova Str. 18 Arkhangelsk Russia The company has set a RUR2,024,000 starting price for the auctioned assets. Interested participants have until May 28 to deposit an amount of RUR101,200 to: PBOYuL Smirnov O.I. Settlement Account 40802810200010000254 Correspondent Account 30101810500000000793 BIK 041117793 OJSC Fondservisbank (Arkhangelskiy) Arkhangelsk Russia Bidding documents must be submitted to: O. Smirnov Popova Str. 18 163000 Arkhangelsk Russia Tel/Fax: 20-44-43 The Debtor can be reached at: OJSC Uemskiy Ceramic Factory Brovtseva Str. 136 Dubenki Dubenskiy Mordoviya Russia UFA-AUDIT CJSC: Court Names S. Konovalov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Bashkortostan appointed S. Konovalov as Insolvency Manager for CJSC Audit Company Ufa-Audit (TIN 0274016620). He can be reached at: S. Konovalov Post User Box 19 Sterlitamak-28 453128 Bashkortostan Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-25999/06-G-GIA. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: CJSC Audit Company Ufa-Audit Bashkortostan Russia UFA-OIL-GAS-STROY: Asset Bidding Deadline Slated for May 18 ----------------------------------------------------------- R.Gazizov, the bidding organizer and insolvency manager for OJSC Ufa-Oil-Gas-Story, will open a public auction for the company's properties at 10:00 a.m. on May 22 at: OJSC Ufa-Oil-Gas-Stroy Maykopskaya Str. 58/1 Ufa Bashkortostan Russia The case is docketed under Case No. 52100/05-G/PAV. The company has set a RUR10,685,000 starting price for the auctioned assets. Interested participants have until May 18 to deposit an amount of RUR534,250 to: OJSC Ufa-Oil-Gas-Story Settlement Account 40702810400000002891 Correspondent Account 30101810800000000842 BIK 048073842 TIN 0274050998 KPP 027201001 OJSC ACB Bashkomsnabbank Ufa Russia Bidding documents must be submitted to: R. Gazizov Maykopskaya Str. 58/1 Ufa Bashkortostan Russia The Debtor can be reached at: OJSC Ufa-Oil-Gas-Story Maykopskaya Str. 58/1 Ufa Bashkortostan Russia YUKOS OIL: Shell & BP Set to Join Auction for Petrol Stations ------------------------------------------------------------- Royal Dutch Shell and TNK-BP Holding Ltd. will participate in tomorrow's auction for OAO Yukos Oil Co.'s 537 petrol stations in Russia, published reports say. OAO Rosneft and Unitex are also expected to bid for the petrol station network, which carries a RUR7.7 billion starting price. As widely reported, TNK-BP submitted a bid to acquire Yukos' 9.44% stake in Rosneft during the first series of Yukos auctions on March 27. However, RN-Razvitiye, a Rosneft subsidiary, outbid TNK-BP when it offered RUR197.8 billion for the assets. Analysts criticized the sell-off accusing TNK-BP of participating in the auction only to appease the Kremlin as two bidders would legitimize the sale process, Russell Hotten writes for Telegraph.co.uk. Published reports say TNK-BP and Shell have confirmed their interest in joining the bidding race. TNK-BP, Steve Hawkes of Times Online notes, already runs 1,600 petrol stations across Russia. Rosneft Oil and Gazprom are seen as the most likely bidders for the bulk of the nearly 200 Yukos assets up for liquidation, which Mr. Rebgun aims to sell by August 2007. As of Jan. 31, claims against Yukos filed by 68 creditors reached RUR709 billion (US$26.8 billion). 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. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. 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. YUKOS OIL: RFFI Sets May 11 Auction for Office & Research Assets ---------------------------------------------------------------- The Russian Federal Property Fund will auction OAO Yukos Oil Co.'s Moscow office and its research and development assets under one lot on May 11, RIA Novosti reports. The lot, which includes the bankrupt company's 22-storey headquarters, carry a RUR22 billion starting price, with a bid increment of RUR110.3 million, RIAN relates. According to analysts cited by Russian daily Kommersant, the ask price for the gas station chain could have been twice as high. The auction for the assets was initially scheduled in early April but was called off due to a lack of bids. The auctioneer did not disclose the bidders participating in the auction. 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. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. 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. YUKOS OIL: Slovakia Wants Russian Help Over Transpetrol Stake ------------------------------------------------------------- Slovakian Prime Minister Robert Fico has sought the help of Russian officials in resolving the fate of OAO Yukos Oil Co.'s 49 percent stake in Transpetrol a.s., The St. Petersburg Times relates citing reports from the Associated Press. In a meeting with Russian President Vladimir Putin and Prime Minister Mikhail Fradkov, Mr. Fico asked Russia for "comprehensive support in the elimination of all barriers in the transfer of Yukos property and shares to Transpetrol," St. Petersburg Times reports citing Itar-Tass as its source. As reported in the Troubled Company Reporter on March 20, the Economy Ministry of Slovakia sought to extend its veto power against any possible sale of Yukos' minority stake. The Slovakian government sold these shares to Yukos Finance BV, the Dutch subsidiary of bankrupt OAO Yukos Oil Co., in 2002. Under terms of the deal, Slovakia retains the right to block the sale of these shares until April 2007. The state, which holds the remaining 51% in Transpetrol, indicated last year that it is trying to reinforce its position over the company by repurchasing the 49% stake it sold to Yukos. About Transpetrol Transpetrol a.s. -- http://www.transpetrol.sk/-- operates the Slovak part of the Druzhba oil pipeline through which about 10 million tons of Russian oil flow to western Europe annually. 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. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. 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 ========= FENDER MUSICAL: S&P Assigns B+ Rating on US$200-Mil. Term Loan -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'B+' corporate credit rating on Fender Musical Instruments Corp. and revised the outlook to stable from negative. At the same time, Standard & Poor's assigned a 'B+' rating, the same as the corporate credit rating, to the company's US$200 million senior secured term loan facility, with a recovery rating of '3', indicating that lenders could expect meaningful (50%-80%) recovery of principal in the event of a payment default. The company will also procure a new US$100 million asset-based revolving credit facility (unrated). The revised outlook is based on Fender Musical achieving its May 2006 bank model for fiscal 2006 and maintaining appropriate credit protection measures and liquidity. "We believe the company's improved infrastructure, which has contributed to significantly improved inventory management, will help the company maintain operating stability over the intermediate term," said Standard & Poor's credit analyst Kenneth Shea. "The new bank facility will also result in lower interest expense, enhancing the company's liquidity and credit measures." The ratings are based on Fender Musical's high debt leverage and narrow business focus, and the discretionary nature of its products. These factors are somewhat mitigated by the company's strong market share and global brand names in the guitar-and amplifier-segment, including Fender, Squier, Gretsch, and Guild. Scottsdale, Ariz.-based Fender Musical Instruments Corp.-- http://www.fender.com/-- is the world's foremost manufacturer of guitars, basses, amplifiers and related equipment. The FMIC family includes several other distinctive musical instrument brands: Charvel(R), Gretsch(R), Guild(R), Jackson(R), Olympia(R), Orpheum(R), SWR(R), Squier(R) and Tacoma(R). FMIC also manufactures a complete line of professional audio equipment under the Fender brand, including the Passport(R) portable sound system. Fender also offers a complete line of accessories, including strings, authorized replacement parts, cases, straps and clothing among others. FMIC's U.S. facilities are located in Arizona, California, Tennessee and Washington, with international facilities in England, France, Germany, Japan, Mexico, Spain and Sweden. ===================== S W I T Z E R L A N D ===================== BEATRICE KAISER: Creditors' Liquidation Claims Due May 30 --------------------------------------------------------- Creditors of LLC Beatrice Kaiser have until May 30 to submit their claims to: Beatrice Kaiser Liquidator Holbeinstrasse 22 4051 Basel BS Switzerland The Debtor can be reached at: LLC Beatrice Kaiser Basel BS Switzerland CONFISERIE SIMMEN: Creditors' Liquidation Claims Due May 31 ----------------------------------------------------------- Creditors of JSC Confiserie Simmen have until May 31 to submit their claims to: Bruno Tscholl Liquidator Bahnhofstrasse 14 7000 Chur Plessur GR Switzerland The Debtor can be reached at: JSC Confiserie Simmen Arosa Plessur GR Switzerland ELIAS JSC: Creditors' Liquidation Claims Due May 31 --------------------------------------------------- Creditors of JSC Elias have until May 31 to submit their claims to: JSC Riedi Berni Theus Liquidator via Mulin 4 7500 St. Moritz Maloja GR Switzerland The Debtor can be reached at: JSC Elias Silvaplana Maloja GR Switzerland ERMA ELAN: Creditors' Liquidation Claims Due May 31 --------------------------------------------------- Creditors of LLC Erma Elan Engineering have until May 31 to submit their claims to: Jaromir Kubias Liquidator Krebsbarenhalde 8 6048 Horw LU Switzerland The Debtor can be reached at: LLC Erma Elan Engineering Horw LU Switzerland FUNKEY LLC: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC FunKey on April 17. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC FunKey 6300 Zug Switzerland HORSY REITSPORT: Creditors' Liquidation Claims Due May 30 --------------------------------------------------------- Creditors of LLC Horsy Reitsport have until May 30 to submit their claims to: Rolf Walther Liquidator JSC Miwa Verwaltung Winterthurerstrasse 92 8006 Zurich Switzerland The Debtor can be reached at: LLC Horsy Reitsport Bauma Pfaffikon ZH Switzerland IMPRIM LLC: Creditors' Liquidation Claims Due May 29 ---------------------------------------------------- Creditors of LLC Imprim have until May 29 to submit their claims to: Steinhauserstrasse 13 6300 Zug Switzerland The Debtor can be reached at: LLC Imprim Zug Switzerland KREIS 4 GARAGE: Creditors' Liquidation Claims Due May 30 -------------------------------------------------------- Creditors of JSC Kreis 4 Garage have until May 30 to submit their claims to: Reheis Otto Liquidator Langfurenstr. 61 8143 Stallikon Affoltern ZH Switzerland The Debtor can be reached at: JSC Kreis 4 Garage Zurich Switzerland SITA REISEBURO: Creditors' Liquidation Claims Due May 29 -------------------------------------------------------- Creditors of JSC Sita Reiseburo have until May 29 to submit their claims to: Hans Forer Liquidator Buhlbergstrasse 102 3775 Lenk im Simmental Obersimmental BE Switzerland The Debtor can be reached at: JSC Sita Reiseburo St. Stephan Obersimmental BE Switzerland XCCESS LLC: Creditors' Liquidation Claims Due May 30 ---------------------------------------------------- Creditors of LLC XCCESS have until May 30 to submit their claims to: Markus Kaufmann Liquidator Hauptstrasse 52 4495 Zeglingen Sissach BL Switzerland The Debtor can be reached at: LLC XCCESS Zeglingen Sissach BL Switzerland ============= U K R A I N E ============= ATON-PLUS LLC: Creditors Must Register Claims by May 12 ------------------------------------------------------- Creditors of LLC Aton-Plus (code EDRPOU 33927518) have until May 12 to submit written proofs of claim to: S. Kitsul Liquidator Leskovskaya Str. 28 02097 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on April 4. The case is docketed under Case No. B 11/111-07. 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 Aton-Plus Brovary, Metallurgov Str. 4 07400 Kiev Ukraine HERSON REGIONAL: Creditors Must Register Claims by May 13 --------------------------------------------------------- Creditors of OJSC Herson Regional Agricultural Equipment (code EDRPOU 00914183) have until May 13 to submit written proofs of claim to: Leonid Galka Liquidator Voenny passage 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/222-B-06. The Court is located at: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Debtor can be reached at: OJSC Herson Regional Agricultural Equipment Pervomayskaya Str. 107 Kozatskoe Berislav District 74343 Herson Ukraine LVOV EXPERIMENTAL: Creditors Must Register Claims by May 12 ----------------------------------------------------------- Creditors of Common Enterprise Lvov Experimental Ceramics and Sculpture Plant (code EDRPOU 02913682) have until May 12 to submit written proofs of claim to: Andrew Kolesnikov Liquidator Tarnavsky Str. 104b 79017 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on March 29. The case is docketed under Case No. 6/242-8/210. The Court is located at: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: Common Enterprise Lvov Experimental Ceramics and Sculpture Plant Muchnaya Str. 32 Lvov Ukraine PARTNER LLC: Claims Filing Bar Date Set May 12 ---------------------------------------------- Creditors of LLC Partner (code EDRPOU 25068022) have until May 12 to submit written proofs of claim to: Vitaly Gumeniuk Temporary Insolvency Manager Privokzalnaya Str. 9/81 76000 Lvov Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B-15/76. The Court is located at: The Economic Court of Ivano-Frankovsk Shevchenko Str. 16a 76000 Ivano-Frankovsk Ukraine The Debtor can be reached at: LLC Partner Koliyskaya Str. 72 Sopov Kolomiya District 78217 Ivano-Frankovsk Ukraine ROMNY PLANT: Claims Filing Bar Date Set May 12 ---------------------------------------------- Creditors of LLC Romny Plant Industrial Machine (code EDRPOU 32429929) have until May 12 to submit written proofs of claim to: M. Derkach Temporary Insolvency Manager October Revolution Str. 5 Romny 42010 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy supervision procedure on the company on March 5. The case is docketed under Case No. 8/84-07. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: LLC Romny Plant Industrial Machine October Revolution Str. 8 Romny 42000 Sumy Ukraine =========================== U N I T E D K I N G D O M =========================== A.D.I. ENVIRONMENTAL: Creditors' Meeting Slated for May 18 ---------------------------------------------------------- Creditors of A.D.I. Environmental Services Ltd. will meet at 11:00 a.m. on May 18 at: Langley Group LLP Langley House Park Road East Finchley London N2 8EX England Creditors who want to vote at the meeting have until noon on May 17 to submit their proxy forms together with particulars of their claims or of any security at the said address. The proxy form and statement may be posted or sent by fax to 020 8444 3400. 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 May 16 at the offices of Langley Group LLP. AGCO CORPORATION: Earns US$24.5 Million in Qtr. Ended March 31 -------------------------------------------------------------- AGCO Corporation reported net income of US$0.26 per share for the first quarter of 2007. For the first quarter of 2006, AGCO reported net income of US$0.19 per share. Net sales for the first quarter of 2007 were US$1.3 billion, an increase of approximately 14% compared to the same period in 2006. "Strong performance from our South American operations contributed to our results in the first quarter," stated Martin Richenhagen, Chairman, President and Chief Executive Officer. "The improving conditions in the Brazilian agricultural machinery market fueled sales growth of approximately 34% in our South American business. The additional sales volume allowed us to leverage the improvements we have made in our cost structure in South America, resulting in double-digit operating margins for the region. We saw sales growth in both our Massey Ferguson and Valtra brands, which when combined, have a leading market position in Brazil. The strength of our full product lines and our superior dealer networks has us well positioned in this important region. In addition, our first quarter earnings benefited from lower net interest costs resulting from our improved net debt position." "The quarter also was marked by the initial production in Europe of the new Fendt 900 series high horsepower tractors," Mr. Richenhagen continued. "This launch reinforces Fendt's role as a pioneer in agricultural engineering and superior design. As previously discussed, our controlled roll-out of the new high horsepower tractor model impacted our sales mix in the first quarter of 2007 and resulted in lower margins in our Europe/Africa/Middle East segment. Strong performance by our Massey Ferguson and Valtra brands in Europe partially offset the weaker sales mix and supplier constraints experienced at Fendt. The 900 series is being well received by our customers, and we expect strong sales and improved margins in our European business for the remainder of 2007." First Quarter Results Net sales for the first quarter of 2007 increased approximately 14% to US$1,332.6 million compared to US$1,169.8 million for the first quarter of 2006. For the first quarter of 2007, AGCO reported net income of US$24.5 million, or US$0.26 per share. For the first quarter of 2006, AGCO reported net income of US$17.3 million, or US$0.19 per share. Adjusted net income, excluding restructuring and other infrequent expenses, was US$17.4 million, or US$0.19 per share, for the first quarter of 2006. AGCO's net sales, excluding the impact of currency translation of US$75.6 million, increased approximately 7.5% in the first quarter of 2007 compared to the same period in 2006. Net sales increased in all four of AGCO's geographical segments, with the strongest sales increase in South America where improved market conditions in Brazil led to higher sales. European sales increased due to strong growth in Scandinavia, Finland and the United Kingdom, partially offset by weaker sales in Germany. In North America, net sales increased slightly in 2007 compared to 2006 consistent with the moderate increase in industry demand. Sales were slightly higher in AGCO's Asia/Pacific region despite soft market conditions. For the first quarter of 2007, income from operations increased approximately US$1.7 million compared to 2006 resulting from the increase in net sales. First quarter gross margins were below 2006 due to brand and product mix. Unit production of tractors and combines for the first quarter of 2007 was approximately 5% above 2006 levels. In AGCO's Europe/Africa/Middle East region, income from operations decreased approximately US$4.2 million in the first quarter of 2007 compared to 2006 due to a weaker sales mix and lower operating margins caused by the phasing of the new Fendt 900 series production, as well as supplier constraints in Germany that limited sales in the first quarter. Growth from the Massey Ferguson and Valtra brands contributed to a 5% increase in net sales, excluding currency impact, and helped to partially offset the operating income decline. Income from operations in AGCO's South America region increased approximately US$8.5 million for the first quarter of 2007 compared to 2006. Industry demand in South America was above 2006 levels, resulting in an increase in AGCO's net sales in South America, excluding currency impact, of approximately 30% for the first quarter of 2007. Operating margins increased approximately 2.5% in the first quarter of 2007 compared to the first quarter of 2006. Higher sales volumes combined with ongoing process improvements and cost reduction initiatives provided favorable operating leverage. In North America, income from operations decreased approximately US$1.9 million in the first quarter of 2007 compared to 2006. Income from operations in the first quarter of 2007 was lower primarily due to negative currency impacts on products sourced from Brazil and Europe, partially offset by sales growth. Income from operations in the Asia/Pacific region decreased approximately US$0.6 million in the first quarter of 2007 compared to 2006. The reduction in operating income was primarily due to a weaker sales mix in Australia, where the severe drought has resulted in lower sales of combines and high horsepower tractors. Regional Market Results North America -- Industry unit retail sales of tractors for the first quarter of 2007 increased approximately 1% over the comparable prior year period resulting from an increase in the utility tractor segment largely offset by decreases in the compact and high horsepower tractor segments. Industry unit retail sales of combines for the first quarter of 2007 increased approximately 13% from the prior year period. AGCO's unit retail sales of tractors were lower and combines were higher in the first quarter of 2007 compared to 2006. Europe -- Industry unit retail sales of tractors for the first quarter of 2007 increased approximately 3% compared to the prior year period. Retail demand improved in most of the major markets of Europe, but declined in Italy and Spain. AGCO's unit retail sales for the first quarter of 2007 were higher when compared to the prior year period. South America -- Industry unit retail sales of tractors increased approximately 25% and industry unit retail sales of combines increased approximately 30% for the first quarter of 2007 compared to the prior year period. Unit retail sales of tractors and combines in the major market of Brazil increased approximately 31% and 57%, respectively, during the first quarter of 2007 compared to 2006. AGCO's South American unit retail sales of tractors and combines also increased in the first quarter of 2007 compared to 2006. Rest of World Markets -- Outside of North America, Europe and South America, AGCO's net sales for the first quarter of 2007 were approximately 28% higher than 2006 due to higher sales in Africa and Asia. "Strong commodity prices supported industry demand across much of the globe in the first quarter," stated Mr. Richenhagen. "In Europe, industry retail sales are benefiting from higher farm income in 2006 and the continuing strong growth in Eastern and Central Europe. In North America, higher commodity prices and improving farmer sentiment contributed to modest improvement in retail demand in the first quarter. The sugar cane sector remains strong in Brazil, and a better grain harvest has increased industry demand." Outlook Industry retail sales of farm equipment in 2007 in all major markets are expected to be flat or above 2006 levels. In North America, 2007 farm income is expected to increase slightly as the benefit of strong commodity prices is offset by higher input costs and lower government subsidies. As a result, sales of farm equipment in 2007 are also expected to increase slightly. Improved farm income in Brazil is expected to support an increase in industry sales this year. However, high levels of farmer debt, especially in the mid-west region, could impact Brazilian demand for the remainder of 2007. Industry demand in Europe is expected to be relatively flat compared to 2006 with growth in Central and Eastern Europe offsetting small declines in Western Europe. AGCO's net sales for the full year of 2007 are expected to grow 8% to 9% compared to 2006, driven primarily by improving market conditions in South America, continued growth in Europe and currency impacts. For the full year, AGCO is targeting earnings per share of approximately US$1.45 with earnings improvements resulting primarily from sales growth and lower interest costs. The earnings target continues to include investments in the form of increased engineering expenses, plant restructurings, system initiatives, new market development, and distribution expenditures, all of which support the Company's strategic direction. In addition, ongoing working capital initiatives are expected to produce strong cash flow. About Agco Corp. Headquartered in Duluth, Georgia, Agco Corp. -- http://www.agcocorp.com/-- is a global manufacturer of agricultural equipment and related replacement parts. Agco offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in more than 140 countries worldwide, including Argentina, Australia, Brazil, France and the United Kingdom. AGCO products include the following brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company had net sales of US$5.4 billion in 2005. * * * AGCO Corp.'s 1-1/4% Convertible Senior Subordinated Notes due 2036 carry Standard & Poor's BB- rating. AJC CLEANING: Appoints Joint Administrators from Vantis ------------------------------------------------------- Peter James Hughes-Holland and Frank Wesseley of Vantis Plc were appointed joint administrators of AJC Cleaning Services Ltd. (Company Number 04325880) on April 19. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: AJC Cleaning Services Ltd. Dudley House High Street Bracknell RG12 1LL England Tel: 01344 453 926 ARMOR HOLDINGS: Inks US$4.1 Billion Sale Pact with BAE Systems -------------------------------------------------------------- Armor Holdings, Inc. entered into a definitive merger agreement to be acquired by BAE Systems, Inc., a wholly owned subsidiary of BAE Systems plc, for US$4.1 billion, or a price per common share of US$88 through a one-step merger. The transaction is subject to approval of Armor Holdings, Inc. shareholders and to customary closing conditions, including compliance with The Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval under the Exon-Florio National Security Test for Foreign Investment. The transaction is expected to close in the third quarter. "We are exceptionally pleased to join forces with BAE Systems plc, a global leader in the defense industry," Warren B. Kanders, Chairman and Chief Executive Officer of Armor Holdings, Inc. said. "We would like to thank our shareholders for the constant support they have shown our company through numerous transactions and business initiatives that have enabled us to deliver superior investment returns. Importantly, we would also like to thank our management team and our Board of Directors for their dedication and stewardship over the years." "We are excited to move this business to the next phase of its development," Robert R. Schiller, President of Armor Holdings, Inc., commented. "We have no doubt that BAE Systems will place the needs of our customer and those of the men and women in uniform who depend on our products at the center of their ongoing effort. We owe a special thanks and a deep debt of gratitude to each of our over 8,000 employees around the world. Their tireless commitment to excellence and innovation has and will continue to make this organization strong for many years into the future." Armor Holdings was advised by Goldman, Sachs & Co., Inc. and Merrill Lynch & Co., Inc., as financial advisors and Kane Kessler, P.C., as legal counsel. Headquartered in Jacksonville, Florida, Armor Holdings, Inc. (NYSE: AH)-- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. The company has operations in Australia, England and Brazil. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its Ba3 Corporate Family Rating for Armor Holdings Inc. Additionally, Moody's affirmed its B1 ratings on the company's 2% Convertible Senior Subordinated Notes Due 2024 and 8.25% Senior Subordinated Notes Due 2013. Moody's assigned those debentures an LGD5 rating suggesting noteholders will experience a 77% loss in the event of default. Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013 carry Moody's Investors Service's B1 rating and Standard & Poor's B+ rating. ARMOR HOLDINGS: S&P Places Watch to Positive on BAE Acquisition --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including the 'BB' corporate credit rating, on Jacksonville, Fla.-based Armor Holdings Inc. on CreditWatch with positive implications. "The CreditWatch follows the announcement that Armor has agreed to be acquired by Farnborough, U.K.-based BAE Systems PLC for a total consideration of US$4.5 billion, including assumed debt," said Standard & Poor's credit analyst Christopher DeNicolo. The acquisition is subject to customary regulatory approvals, as well as approval by Armor's shareholders, and is expected to close in the third quarter of 2007. Ratings are likely to be withdrawn if outstanding rated debt is repaid or converted to common stock in the case of Armor's US$345 million convertible notes. The company's aerospace and defense group (about 80% of revenues in 2006) produces armored military vehicles, military body armor, soldier equipment, and crew seats for military helicopters and transports. Armor is a leading provider of law enforcement equipment, including body armor, holsters, riot gear, and batons, through its Products group. Armor also provides commercial vehicle armoring through its Mobile Security division (5%). BFS INVESTMENTS: Payment for GBP700 Mln Split Capital Investors --------------------------------------------------------------- The Financial Services Compensation Scheme has declared Exeter Fund Managers, one of the firms involved in the GBP700 million split capital investment trust fiasco, to be "in default," opening the way for claims of up to GBP48,000 per individual investor under the statutory safety net, Telegraph.co.uk relates. The FSCS also disclosed that around 5,000 investors with BFS Investments plc are set to receive an interim payout within the next four months, the Telegraph states. According to the report, only financiers in two Exeter unit trusts and an open-ended investment company (Oeic) that invested in the splits' shares are affected by the FSCS ruling. The funds covered are Exeter Zero Preference Fund Unit Trust, Exeter Oeic Zero Portfolio, and Exeter High Income Unit Trust. Investors in Exeter trusts were not entitled to claim from the GBP196 million compensation fund, negotiated between the FSCS and 19 groups involved in the scandal, because it reneged from the deal. Exeter claimed it could not donate enough cash to cover its liabilities, leaving investors little hope of a payout, the Telegraph reveals. BFS also pulled out of the FSA deal pleading poverty, but investors are closer to getting some compensation. BFS liquidator Grant Thornton said it would disburse an interim payment worth 2 pence to 3 pence in the pound to eligible investors within the next four months. A second payment is due later in the year, worth anything between 8 pence in the pound and 30 pence in the pound subject to litigation with BFS, the Telegraph reports. The FSCS hopes to deal with most of the claims before April 2008 but notes that although some straightforward claims may be completed in a matter of weeks, the more complicated ones will take longer, the Telegraph says. Split capital investment trusts tried to use gearing or borrowing to boost returns but several failed when interest rates rose and investment returns fell. Thousands of investors lost money in the sector, the Telegraph observes. Regulators decided that marketing material issued by Exeter, which claimed these investments were medium or low risk, "did not properly describe the risk level of the three funds." Investors who can prove that Exeter caused them to buy or retain these funds after April 1, 2001, through literature may be eligible for compensation, the Telegraph discloses. About Exeter Fund Managers Exeter Fund Managers -- http://www.exeter.co.uk/-- is a fund management firm involved in the split capital trust industry. EFM is a wholly owned subsidiary of 23 Cathedral Yard Limited, which is a part of the iimia investment group plc formed on August 16, 2004, by the merger of iimia (Holdings) Limited with the Exeter Investment Group, of which EFM was a part. The company's directors placed Exeter Fund Managers into administration after they concluded that there was insufficient certainty that the company was solvent following potential misselling claims from investors in respect of two funds, which it previously marketed. About BFS Investments BFS Investments plc -- http://www.bfsinvest.co.uk/-- is a fund management firm that used to operate in the split capital trust industry. BFS Creditors confirmed the company's voluntary liquidation after members passed a resolution to wind up the company's operations on Feb. 10, 2006. BRITISH AIRWAYS: To Launch Consortium Bid for Iberia This Week -------------------------------------------------------------- Willie Walsh, chief executive of British Airways plc, is set to launch a bid this week for Iberia Lineas Aereas de Espana SA with a group of private equity investors, Danny Fortson writes for The Independent. According to the report, Mr. Walsh will decide over the weekend whether BA will join with Texas Pacific Group and Spanish private equity firm partner Ibersuizas and Vista Capital or rival bidders British private equity group Apax Partners and specialist aerospace investor Gestairin. As previously reported in the TCR-Europe on April 24, British Airways is considering how to use its 10% holding in Iberia. As part of this process, the airline has approached a number of private equity companies about making a consortium offer for Iberia. Any consortium bid would not involve further capital investment by British Airways. As well as a private equity partner, this consortium is likely to include one or more Spanish partners. British Airways has not made a final decision about the future of its shareholding in Iberia and continues to examine numerous options including full disposal. However, it has ruled out an independent bid for the airline. British Airways earlier appointed UBS AG to advise on how to use the holding in the best interests of shareholders. The move came after Iberia disclosed that it has received a bid approach from private equity firm Texas Pacific Group. According to the report, TPG is considering a cash offer of EUR3.60 a share, which values Iberia at EUR3.4 billion (US$4.5 billion. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. * Issuer: British Airways, Plc Projected Old POD New POD LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported in the TCR-Europe on March 27, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. BRITISH AIRWAYS: Inks Strategic Partnership with HEICO Aerospace ---------------------------------------------------------------- HEICO Corp. and British Airways plc had entered into a long term Alternative Parts Supply, Development and Management Agreement. The Strategic Partnership is HEICO's seventh such unique relationship with a major international airline. HEICO has partner positions with Lufthansa, American Airlines, United, Delta Air Lines, Air Canada, JAL and now British Airways. Under the new Agreement, HEICO will exclusively manage British Airways' Alternative Parts Program helping the airline maximize savings through the use of Alternative Parts in the most timely way. HEICO Aerospace, renowned for its exceptional safety and quality record within the aviation industry, was the perfect choice for British Airways whose dedication to safety and world class product makes it one of the world's premier airlines. HEICO Aerospace celebrates its 50th anniversary this year and is the world's largest independent designer, manufacturer and distributor of FAA and EASA Approved Replacement Parts for jet engines and aircraft components. Its global and growing customer base includes most of the airlines and overhaul facilities worldwide that service commercial aircraft and jet engines. HEICO Aerospace, well known for having over 5,000 FAA Approved Alternative Parts and developing a further 400 each year, is also experiencing significant success in offering bespoke Alternative Parts Management programs to the airlines allowing customers to maximize savings in record time frame. "BA is delighted to be working with HEICO Aerospace on developing our replacement parts program into the future. This strategic partnership forms a key element of our business strategy, while continuing to maintain the highest levels of safety and reliability," Raj Mehta, British Airways General Manager Materials Management & Component Overhaul, stated. "We are incredibly proud that British Airways has chosen HEICO as their long term strategic partner for this Parts Development and Management program," Eric A. Mendelson, HEICO Aerospace's President and Chief Executive Officer, commented. "This Strategic Partnership will accelerate HEICO's efforts in developing a broader range of superior products and services that help airlines generate huge savings in today's highly competitive market. British Airways is the seventh major airline to enter into a strategic partnership with HEICO making a clear statement to the industry that a safe, reliable alternative is what many operators continue to look for." About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways, Plc Projected Old Debt New Debt LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% * Issuer : British Airways Finance (Jersey) L.P. EUR300-million Preferred Stock B1 Ba3 LGD6 97% As reported in the TCR-Europe on March 27, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. COINSTAR INC: S&P Raises Corporate Credit Rating to BB from BB- --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings, including the corporate credit rating, on Coinstar Inc. to 'BB' from 'BB-'. The outlook is stable. The upgrade is supported by continued improvement in financial metrics for Coinstar, including leverage that was reduced to 1.9x in 2006 and strengthening of other credit protection measures. The ratings on Coinstar reflect a business characterized by significant customer concentration, short-term contracts, and higher operating risks with the growing entertainment services and e-payment business segments. Positive considerations include the company's industry-leading position in automated coin-counting machines, very satisfactory credit measures, and strong free cash flow generation. "We expect Coinstar to continue its good operating performance while successfully integrating recent acquisitions," said Standard & Poor's credit analyst Jackie E. Oberoi, "but the weakening of operating results caused by the loss of a significant retail partner, pricing pressures, or a more aggressive growth strategy could lead to a negative outlook." Coinstar, Inc., based in Bellevue, Washington, owns and operates a multinational, fully automated network of coin processing kiosks, as well as electronic payment, entertainment services, and self-service DVD rentals. The Company owns and operates nearly 13,000 coin-counting machines in the US, Canada and the UK, and 320,000 entertainment services (skill-crane, bulk vending, and kiddie ride) machines across the US and Mexico. Additionally, it utilizes more than 19,300 point-of-sale terminals and owns and operates approximately 360 stand-alone e-payment kiosks in the US and the UK. The coin- counting units are located primarily in supermarkets (such as Kroger and Albertsons); the entertainment services machines can be found in more than 33,000 retail locations including Wal-Mart and Kmart stores. COSTAIN GROUP: Arden Gets Financial Close on GBP30 Mln Project -------------------------------------------------------------- Arden Partnership, Costain Group PLC's 50:50 joint venture with Alfred McAlpine, has reached financial close on the GBP30 million Lincolnshire Project, the first of three phases of the GBP76.5 million Three Shires PFI Scheme. The deal was financed by NIBC Bank NV as Lead Arranger. The project is for the design, build and operation of a 8,500sqm Community Hospital and ancillary services over a four hectare site in Spalding, Lincolnshire. Costain will carry out the design and construction works and Alfred McAlpine will provide facilities management services. The remaining two projects in the batched scheme are in Leicester and Derby and are due to reach financial close in the summer. "We're delighted to have reached Financial Close on another significant PFI scheme in the health sector. This is further evidence of the strong relationships we are developing with key NHS Trusts across the U.K. and we are confident of similar success on the scheme's remaining two projects," Andrew Wyllie, Chief Executive of Costain, said. Headquartered in Maidenhead, United Kingdom, Costain Group PLC -- http://www.costain.com/-- is an international engineering and construction group. The Company provides building, civil engineering and specialist processing services in the United Kingdom, Europe and the Middle East, Asia, the Pacific Rim and Africa. The Group's customers include businesses in the construction, marine, transport, retail hotel and utilities sectors. * * * For the year ended Dec. 31, 2006, Costain Group PLC posted GBP54 million in net losses against GBP784.4 in net revenues, compared with GBP23.6 million in net profit against GBP678.1 in net revenues for the same period in 2005. At Dec. 31, 2006, the Group's balance sheet showed GBP304.3 million in total assets, GBP359.5 million in total liabilities and GBP55.2 million in stockholders' deficit. The Group's Dec. 31, 2006 balance sheet also showed strained liquidity with GBP219.4 million in current assets available to pay GBP280.1 million in current liabilities coming due within the next 12 months. Covenant Breach The directors prepared their 2006 interim financial information on a going concern basis though noted that contract write downs and provisions in respect of their Building and International divisions had caused a breach in their banking and surety covenants. Further contract write-downs in the second half of the year resulted in the Group renegotiating all of its facilities and covenant levels to June 2008. COSTAIN GROUP: Joint Venture Unit Wins Highways Agency Contract --------------------------------------------------------------- Aone+, a joint venture of Costain Group PLC with Colas and Halcrow, has been awarded a contract by the Highways Agency for the day-to-day management of motorways and strategic roads in Greater Manchester, Cheshire, Merseyside and parts of Lancashire. The contract, worth GBP158 million, is for a five-year duration, with work scheduled to commence on Sept. 5. "This contract is further evidence of the success of our 'Being Number One' strategy which focuses on key sectors. In the Highways sector, we have an excellent relationship with the Highways Agency, we are one of the nation's leading road constructors and we have now gained our first significant position in highways maintenance operations," Andrew Wyllie, Chief Executive of Costain, said. Headquartered in Maidenhead, United Kingdom, Costain Group PLC -- http://www.costain.com/-- is an international engineering and construction group. The Company provides building, civil engineering and specialist processing services in the United Kingdom, Europe and the Middle East, Asia, the Pacific Rim and Africa. The Group's customers include businesses in the construction, marine, transport, retail hotel and utilities sectors. * * * For the year ended Dec. 31, 2006, Costain Group PLC posted GBP54 million in net losses against GBP784.4 in net revenues, compared with GBP23.6 million in net profit against GBP678.1 in net revenues for the same period in 2005. At Dec. 31, 2006, the Group's balance sheet showed GBP304.3 million in total assets, GBP359.5 million in total liabilities and GBP55.2 million in stockholders' deficit. The Group's Dec. 31, 2006 balance sheet also showed strained liquidity with GBP219.4 million in current assets available to pay GBP280.1 million in current liabilities coming due within the next 12 months. Covenant Breach The directors prepared their 2006 interim financial information on a going concern basis though noted that contract write downs and provisions in respect of their Building and International divisions had caused a breach in their banking and surety covenants. Further contract write-downs in the second half of the year resulted in the Group renegotiating all of its facilities and covenant levels to June 2008. DEE-SIGN WINDOWS: Creditors' Meeting Slated for May 22 ------------------------------------------------------ Creditors of Dee-Sign Windows & Doors Ltd. will meet at noon on May 22 at: Gateway Hotel Nuthall Road Nottingham NG8 6AZ England Stephen Franklin of Panos Eliades Franklin & Co. will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require during the period before the day of the meeting. The insolvency practitioner can be reached at: Stephen Franklin Panos Eliades Franklin & Co. Albany House 18 Theydon Road London E5 9NZ England EXETER FUND: Compensation for GBP700 Mln Split Capital Investors ---------------------------------------------------------------- The Financial Services Compensation Scheme has declared Exeter Fund Managers, one of the firms involved in the GBP700 million split capital investment trust fiasco, to be "in default," opening the way for claims of up to GBP48,000 per individual investor under the statutory safety net, Telegraph.co.uk relates. The FSCS also disclosed that around 5,000 investors with BFS Investments plc are set to receive an interim payout within the next four months, the Telegraph states. According to the report, only financiers in two Exeter unit trusts and an open-ended investment company (Oeic) that invested in the splits' shares are affected by the FSCS ruling. The funds covered are Exeter Zero Preference Fund Unit Trust, Exeter Oeic Zero Portfolio, and Exeter High Income Unit Trust. Investors in Exeter trusts were not entitled to claim from the GBP196 million compensation fund, negotiated between the FSCS and 19 groups involved in the scandal, because it reneged from the deal. Exeter claimed it could not donate enough cash to cover its liabilities, leaving investors little hope of a payout, the Telegraph reveals. BFS also pulled out of the FSA deal pleading poverty, but investors are closer to getting some compensation. BFS liquidator Grant Thornton said it would disburse an interim payment worth 2 pence to 3 pence in the pound to eligible investors within the next four months. A second payment is due later in the year, worth anything between 8 pence in the pound and 30 pence in the pound subject to litigation with BFS, the Telegraph reports. The FSCS hopes to deal with most of the claims before April 2008 but notes that although some straightforward claims may be completed in a matter of weeks, the more complicated ones will take longer, the Telegraph says. Split capital investment trusts tried to use gearing or borrowing to boost returns but several failed when interest rates rose and investment returns fell. Thousands of investors lost money in the sector, the Telegraph observes. Regulators decided that marketing material issued by Exeter, which claimed these investments were medium or low risk, "did not properly describe the risk level of the three funds." Investors who can prove that Exeter caused them to buy or retain these funds after April 1, 2001, through literature may be eligible for compensation, the Telegraph discloses. About BFS Investments BFS Investments plc -- http://www.bfsinvest.co.uk/-- is a fund management firm that used to operate in the split capital trust industry. BFS Creditors confirmed the company's voluntary liquidation after members passed a resolution to wind up the company's operations on Feb. 10, 2006. About Exeter Fund Managers Exeter Fund Managers -- http://www.exeter.co.uk/-- is a fund management firm involved in the split capital trust industry. EFM is a wholly owned subsidiary of 23 Cathedral Yard Limited, which is a part of the iimia investment group plc formed on August 16, 2004, by the merger of iimia (Holdings) Limited with the Exeter Investment Group, of which EFM was a part. The company's directors placed Exeter Fund Managers into administration after they concluded that there was insufficient certainty that the company was solvent following potential misselling claims from investors in respect of two funds, which it previously marketed. FELBER JUCKER: Taps Joint Administrators from Tenon Recovery ------------------------------------------------------------ S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint administrators of Felber Jucker & Co. Ltd. (Company Number 2238843) on April 16. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Felber Jucker & Co Ltd 48 Minerva Road Ealing London NW10 6HJ England Tel: 020 8965 9371 Fax: 020 8961 3732 HMV GROUP: Total Group Sales Down 2% in 52 Weeks Ended April 28 --------------------------------------------------------------- HMV Group PLC provides trading update for the 52 weeks ended April 28. 16 weeks ended 52 weeks ended April 28, 2007 April 28, 2007 Like for like Total Like for like Total sales growth sales growth sales growth sales growth (2) (2) (2) (2) % HMV U.K. & Ireland (2.0) 1.0 (3.4) (0.5) Asia (3.9) 0.5 (3.1) (5.0) Canada (5.8) (3.0) (3.3) 1.0 Total HMV (2.9) (0.4) (3.3) (1.2) Waterstone's (7.3) (7.8) (4.1) (4.7) HMV Group (3.9) (1.5) (3.5) (2.0) (1) The 16-week period ended 28 April 2007. (2) Like for like sales growth and total sales growth are stated at constant exchange rates. (3) HMV Group's like for like sales performance measures stores that were open at the beginning of the previous financial year and that have not been expanded, closed or resited during that time. It includes sales from Internet sites in the U.K. and Japan. Stores resized (up or down) are excluded from like for like sales performance. Sales are only ever the net amount received. Management is confident that Group profits before tax and exceptional costs for the full year will be in line with market expectations. Total Group sales for the full year fell by 2% at constant exchange rates, including a 3.5% like for like decline. "The markets in which the Group operates have continued to be extremely tough," Simon Fox, Chief Executive Officer, said. "However, as we stated on March 13, our businesses are now planning on the basis of continuing market change, and I am confident that the initiatives we are putting in place to reduce our costs, revitalize our core business and grow our revenues are being pursued at pace and will lead to a turnaround of the Group's performance." "HMV U.K. begins the roll-out of electrical products to 20 stores this month and will launch 'store of the future' trials in the West Midlands and Tunbridge Wells this summer, while sales for HMV.co.uk continued to grow by 150% over the 16-week period. New Children's book and stationery departments are now being rolled out in Waterstone's. In HMV Canada, our e-commerce website has been successfully relaunched and games are now being sold in 77 stores. A good start has also been made to our cost- saving program, including the disposal in the calendar year to date of eight Waterstone's stores," Mr. Fox added. About HMV Headquartered in Maindenhead, United Kingdom, HMV Group PLC -- http://www.hmvgroup.com/-- is engaged in the retailing of pre- recorded music, video and electronic games under the HMV brand, and the retailing of books under the Waterstone's brand. Including the acquisition of Ottakar's Plc, the Group operates over 730 stores in eight countries, with the principal markets being those of the United Kingdom, Japan and Canada. * * * On March 31, 2005, the Group completed a refinancing of its senior bank facilities, creating a more efficient capital structure. A five-year GBP260 million revolving credit facility was arranged, replacing an existing GBP150 million revolving credit facility, together with outstanding term debt of GBP160 million which was repaid in full. Consequent to the refinancing, GBP2.7 million of unamortized deferred financing fees were written-off in the financial year to April 30, 2005, as a non-cash exceptional interest charge. For the 26 weeks ended Oct. 28, 2006, HMV posted GBP26.1 million in net losses compared with GBP100,000 in net profit for the same period in 2005. At Oct. 28, 2006, the company's balance sheet showed GBP53.8 million in stockholders' deficit, compared with a GBP49.7- million deficit at Oct. 29, 2005. The company's Oct. 28, 2006 balance sheet also showed strained liquidity with GBP423.3 million in total current assets available to pay GBP734.5 million in total liabilities coming due within the next 12 months. HURLSTON HALL: Brings In Administrators from Kroll Ltd ------------------------------------------------------ P. F. Duffy and D. J. Whitehouse of Kroll Ltd. were appointed joint administrators of Hurlston Hall Golf Club Plc. (Company Number 2607148) on April 16. Kroll Limited -- http://www.krllworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. The company can be reached at: Hurlston Hall Golf Club Plc 56 Moorfield Lane Scarisbrick Ormskirk L40 8JD England Tel: 01704 841 120 Fax: 01704 841 143 INTERNATIONAL RECTIFIER: Wedbush Morgan Raises Rating to "Buy" -------------------------------------------------------------- Newratings.com reports that Wedbush Morgan analysts have upgraded their rating on International Rectifier's shares to "buy" from "hold." According to Newratings.com, the analysts also reduced their estimates for International Rectifier, setting the 12-month target price to US$45. The analysts said in a research note published on May 1 that a "seasonal lift" in the International Rectifier's "game console and server power controller businesses" will likely occur in the second half of 2007. The analysts told Newratings.com that after the International Rectifier's "ramp of its new Wales fab," gross margins are expected to rise again in the second half. According to Newratings.com, Wedbush Morgan said that overall the International Rectifier's accounting irregularities are expected to be insignificant. Earnings per share estimate for 2007 was decreased to US$2.15 from US$2.27, while estimate for 2008 was reduced to US$2.03 from US$2.14. Headquartered in El Segundo, Calif., International Rectifier Corporation (NYSE:IRF) -- http://www.irf.com/-- provides enabling technologies for products that work smarter, run cooler, and raise the world's productivity-per-watt. It has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2007, Fitch Ratings has upgraded International Rectifier Corp.'s (NYSE: IRF) ratings as: -- Issuer Default Rating to 'BB' from 'BB-'; -- Senior Secured Bank Credit Facility Rating 'BB+' from 'BB'; -- Subordinated Debt Rating to 'BB-' from 'B+'. Fitch said the rating outlook was positive. ISLE OF CAPRI: Awaits Decision on NASDAQ Delisting Hearing ---------------------------------------------------------- Isle of Capri Casinos, Inc., reported that on April 26, 2007, the company participated in a hearing before the NASDAQ Listing Qualifications Panel resulting from the company's inability to file its Quarterly Report on Form 10-Q by the March 9 due date, as previously announced. The company's failure to file its Form 10-Q for the third fiscal quarter ended Jan. 28, 2007 by the March 9 due date, resulted from the company's restatement of its financial statements for the fiscal years ended April 25, 2004; April 24, 2005, and April 30, 2006, and the quarterly results for fiscal 2005 and 2006 included therein, and for the first two quarters of fiscal 2007. The failure to make a timely quarterly filing meant that Isle of Capri Casinos is not in compliance with the filing requirements for continued listing of its common stock on the NASDAQ Global Select Market as set forth in Marketplace Rule 4310(c)(14). On April 25, 2007, NASDAQ notified the company that the Quarterly Report of Form 10-Q that the company filed on April 18, 2007, did not cure the company's deficiency under Marketplace Rule 4310(c)(14) because it had not been reviewed by the company's independent auditors (pending completion of the restatement). The company expects to receive the decision of the NASDAQ Listing Qualifications Panel within a few weeks, regarding its request for an exception giving it time for its auditors to complete their review and for the company to amend the Quarterly Report on Form 10-Q to meet the requirements of Marketplace Rule 4310(c)(14). In the meantime, the company's common stock will remain listed on the NASDAQ Global Select Market. About the Company Based in Biloxi, Miss., Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle of Capri Casinos in connection with its implementation of the new Probability-of-Default and Loss-Given- Default rating methodology for the Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of the company's debts including a LGD5 rating on its 9% Sr. Sub. Notes, suggesting debt holders will experience a 76% loss in the event of a default. As reported in the Troubled Company Reporter on Nov. 8, 2006, Standard & Poor's Ratings Services affirmed ratings on Isle of Capri Casinos Inc., including its 'BB-' corporate credit rating. At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed on Oct. 4, 2006, with negative implications. S&P said the outlook is stable. ISOFT GROUP: IBA Halts Share Trading to Raise New Equity Capital ---------------------------------------------------------------- IBA Health Limited has sought a halt in the trading of its shares on the Australian Securities Exchange. The purpose of this halt in trading is to enable IBA to hold meetings with certain institutional investors with a view to raising new IBA equity capital in order to facilitate a possible combination of IBA and iSOFT Group plc, to be executed by means of a recommended all-share offer by IBA to acquire. The iSOFT management team is participating in these meetings. The material which IBA is presenting to institutional investors includes certain details of the contemplated offer terms, equity raising and financing arrangements as follows: * iSOFT shareholders would receive 1.1 new IBA shares for each iSOFT share, valuing iSOFT at 56.9 pence per share based on the last trading price of IBA shares on the ASX and a GBP:AUD exchange rate of 0.4121 * IBA is seeking to raise approximately AUD200 million (GBP82 million) of new equity capital through a placing and rights issue. Both the placing and rights issue would be fully underwritten by ABN AMRO Rothschild * new debt facilities of GBP130 million (AUD315 million) for the combined entity to be arranged and underwritten by ABN AMRO Bank N.V. These would be subject to completion of a number of conditions precedent including the completion of the equity placement/issuance * full run-rate annual cost synergies from the combination of the two companies are expected by IBA to be approximately AUD27 million (GBP11 million)in IBA's financial year ended June 30, 2009 There can be no certainty that an offer by IBA to acquire iSOFT will be made. iSOFT has in recent months been in discussions with a number of external parties who have expressed an interest in acquiring iSOFT or taking a significant stake in the Company. On Feb. 16, IBA, a healthcare information technology company listed on the Australian Securities Exchange, confirmed that it was in discussions with iSOFT, which might or might not lead to an all-share recommended offer for the Company. About iSOFT Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * In June 2006, the Group disclosed of a change in accounting policy, as a consequence of which it became necessary to review revenue recognition in prior years, in order to re-state some prior year revenues. Arising out of that review, a number of possible accounting irregularities came to light in which it appears that some revenues reported in 2003/04 and 2004/05 may have been recognized earlier than they should have been. On July 20, 2006, the Group engaged its auditors, Deloitte & Touche LLP, to conduct a formal initial investigation into these possible irregularities. In August 2006, it was confirmed that there were indeed matters that needed further investigation and the company handed over relevant documents to the Financial Services Authority, which is now conducting further investigations. The Group is working closely and co-operatively with the FSA in order to complete these investigations as quickly as possible. At the current time it would be inappropriate to comment on the likely outcome. On Oct. 25, 2006, the Accountancy Investigation and Discipline Board (AIDB) disclosed that it would conduct its own investigation. The AIDB investigation is a review of the conduct of those members of accountancy bodies that are regulated by the AIDB who were executive or non-executive directors of iSOFT during the relevant periods, and RSM Robson Rhodes LLP, iSOFT's auditor for the financial years ended April 30 2003, 2004 and 2005. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial investigation into possible accounting irregularities -- conducted by the Group's current auditors, Deloitte & Touche LLP, in July and August 2006 -- did not uncover evidence that any of the current non-executive directors had any knowledge of the irregularities. On the basis of information that has come to light so far, the Group does not believe that these matters will have any impact on the current or future financial position of iSOFT. Going Concern Doubt At Oct. 31, 2006, the company's board of directors recognized that there are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. KRISPY KREME: Prudential Downgrades Shares to Neutral Weight ------------------------------------------------------------ Prudential Financial analyst Howard W. Penney has downgraded Krispy Kreme Doughnuts' shares to "neutral weight" from "overweight," Newratings.com reports. The target price for Krispy Kreme was reduced to US$14 from US$17. According to the report, Mr. Penney noted in a research note published on May 2 that Krispy Kreme has recently reorganized its management team. Mr. Penney expects the recent changes to put off the turnaround at Krispy Kreme from a company-owned model to a business model concentrated on franchisee. Newratings.com added that the earnings per share estimate for fiscal year 2007 was reduced to US$0.30 from US$0.34, while estimate for fiscal year 2008 was decreased to US$0.77 from US$0.81. About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. There are currently approximately 323 Krispy Kreme stores and 79 satellites operating system-wide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea, and the United Kingdom. The company generates revenues from three distinct sources: company-owned stores, franchise fees and royalties from franchise stores, and a vertically integrated supply chain. Freedom Rings, LLC, company's franchisee in Eastern Pennsylvania, Delaware and Southern New Jersey, filed on Oct. 16, 2005, for Chapter 11 protection with the Delaware Bankruptcy Court (Bankr. D. Del. Case No. 05-14268). Following closure of its four remaining stores, the Bankruptcy Court confirmed Freedom Rings' plan of liquidation on April 20, 2006, and its operations have been substantially wound up. KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for restructuring on April 15, 2005, pursuant to the Companies' Creditors Arrangement Act with the Ontario Superior Court of ustice. Krispy Kreme Doughnut Corp. agreed to pay approximately US$9.3 million to two secured creditors to settle its obligations with respect to its guarantees pertaining to certain indebteness and related equipment agreements. In exchange, a newly formed subsidiary of Krispy Kreme Doughnut Corp. acquired substantially all of the operating assets of KremeKo, as authorized by the Ontario Court. Glazed Investments, LLC, company's franchisee in Colorado, Minnesota and Wisconsin, filed for Chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932). Subsequent to this filing, Glazed Investments sold its remaining 12 Krispy Kreme stores to Western Dough, Krispy Kreme's area developer for Nevada, Utah, Idaho, Wyoming and Montana, for appoximately US$10 million. This sale was facilitated by the Chapter 11 filing, by permitting the assets to be sold free and clear of all liens, claims and encumbrances. Under the plan of liquidation filed by Glazed Investments, it will be dissolved after distribution of the sale proceeds to creditors, and Krispy Kreme will not receive any payment on account of its ownership in Glazed Investments. While a substantial portion of Glazed Investments' debts were retired from the sale proceeds and liquidation of other assets, Krispy Kreme paid approximately US$1 million of its franchisee's debt which was guaranteed by it. LEEDS UNITED: Appoints Joint Administrators from KPMG ----------------------------------------------------- Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were appointed May 4, administrators of Leeds United Association Football Club Ltd. at the request of the Club's directors. Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor. The sale of the Club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA). This would see creditors forgoing a significant element of their debt, in order to allow the Club to continue trading under new ownership. The creditors' meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale. "We were asked by the board of directors to advise Leeds United on Monday, April 30, 2007. The Club has experienced significant financial difficulty for some years and was burdened with historic debt and wage structures," Richard Fleming disclosed. "It was necessary for the Club to enter administration as its balance sheet dated March 31, 2007, indicated debts totaling approximately GBP35 million, with a cash injection of approximately GBP10 million required to continue trading. Further, Her Majesty's Revenue & Customs (HMRC) recently issued a winding up petition for approximately GBP5 million. If this debt had not been paid by 25 June 2007, the Club may have been forced into liquidation," Mr. Fleming added. The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the Club's current points total in this years Championship. This means that next season the club will start the campaign in League One with no points deducted. "This agreement has been reached quickly to maximize the possibility of survival of this major football club, to minimize uncertainty for all the Club's stakeholders and supporters and to allow the Club to plan ahead for next season. There is now a big decision for the creditors to make at their forthcoming meeting," Mr. Fleming concluded. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. Headquartered in Leeds, England, Leeds United Association Football Club Ltd. -- http://www.leedsunited.com/-- is an English professional football club. MEGAZONE TECHNOLOGY: Creditors' Meeting Slated for May 23 --------------------------------------------------------- Creditors of Megazone Technology Ltd. will meet at 11:00 a.m. on May 23 at: F A Simms & Partners Plc Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP England Creditors who want to vote at the meeting have until noon on May 22 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 May 21 and May 22. NORTHWAY COMPUTER: Creditors' Meeting Slated for May 18 ------------------------------------------------------- Creditors of Northway Computer Services Ltd. will meet at 10:30 a.m. on May 18 at: Carter Clark Meridian House 62 Station Road North Chingford London E4 7BA England Creditors who want to vote at the meeting have until noon on May 17 to submit their proxy forms together with particulars of their claims or of any security at the said address. Alan J. Clark of Carter Clark will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require. OAKVIEW HORIZONS: Creditors' Meeting Slated for May 18 ------------------------------------------------------ Creditors of Oakview Horizons Ltd. will meet at 3:00 p.m. on May 18 at: Stones & Co. 63 Walter Road Swansea SA1 4PT A list of names and addresses of the company's creditors will be available for inspection free of charge on May 16 at the offices of Stones & Co. ODYSSEY EXPERIENCE: Creditors' Meeting Slated for June 8 -------------------------------------------------------- Creditors of The Odyssey Experience Ltd. will meet at 11:30 a.m. on June 8 at: Castle Suite The Thistle Hotel Gloucester Road Cheltenham Gloucestershire GL51 0TS England Creditors who want to vote at the meeting have until noon on June 7 to submit their proxy forms together with particulars of their claims or of any security to: The Odyssey Experience Ltd. c/o Harrisons Mortimer House Holmer Road Hereford HR4 9TA England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on June 6. Harrisons -- http://www.harrisons.uk.com/-- provides advice and solutions to professional advisors who found their clients experiencing financial difficulties. Originally trading from offices in Reading and has added London, Manchester, Bristol and Derby and has associate offices in Grantham and Stockton on Tees. OFFICE FURNITURE: Creditors' Meeting Slated for May 18 ------------------------------------------------------ Creditors of Office Furniture Outlet Ltd. will meet at 11:30 a.m. on May 18 at: Rushtons Accountants Merchants Quay Ashley Lane Shipley West Yorkshire BD17 7DB England Creditors who want to vote at the meeting have until noon on May 17 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 May 16 at the offices of Rushtons Accountants. PRICELINE.COM INC: Settles 2000 Class Action Suit for US$80 Mil. ---------------------------------------------------------------- Priceline.com Incorporated has agreed to settle the securities class action litigation filed against the company in 2000. Under the terms of the settlement agreement, the class will receive US$80 million in return for a release, with prejudice, of all claims against the company and the individual defendants that are related to the purchase of the company's securities by class members during the class period. The company's insurance carriers will fund US$30 million of the settlement. In connection with the settlement, the company expects to incur a net charge of approximately US$55 million in the 1st quarter of 2007, representing the settlement amount and estimated legal expenses relating to the settlement The company also said that in March and April, it had received definitive notice from the Internal Revenue Service that the company's previously disclosed refund request for excise taxes paid on merchant airline tickets had been approved for payment. As a result, the company expects to record approximately US$18.7 million of income in the first quarter of 2007 related to the March notice and approximately US$3 million of income in the second quarter of 2007 related to the April notice associated with the tax refund, including estimated accrued interest. About Priceline.com Inc Priceline.com Inc. (Nasdaq: PCLN) operates priceline.com, a leading U.S. online travel service for value-conscious leisure travelers, and Priceline Europe, a leading European online hotel reservation service. In the U.S., priceline.com offers customers a variety of ways to save on their airline tickets, hotel rooms, rental cars, vacation packages and cruises. Priceline Europe operates one of Europe's fastest growing hotel reservation services, operates in 40 countries in 12 languages and offers its customers in Europe and the U.S. access to approximately 25,000 participating European hotels. Priceline.com also operates these travel websites: Travelweb.com, Lowestfare.com, RentalCars.com and BreezeNet.com. Priceline.com also has a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee. Priceline.com licenses its business model to independent licensees, including priceline mortgage and certain international licensees. * * * As reported in the Troubled Company Reporter on Apr. 11, 2007, Standard & Poor's Ratings Services placed its ratings, including the 'B' corporate credit rating, on Priceline.com Inc. on CreditWatch with positive implications. The Troubled Company Reporter also reported on Oct. 2, 2006, that Standard & Poor's Ratings Services assigned its 'B' rating to Priceline.com. Inc.'s US$150 million convertible senior notes due 2013. Additionally, S&P affirmed the corporate credit rating on the company at 'B'. S&P said the outlook is Stable. PORTRAIT CORP: Plan Confirmation Hearing Scheduled for May 21 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York in White Plains will convene a hearing on May 21, 2007, at 2:30 p.m., in Courtroom 520, to consider confirmation on Portrait Corporation of America Inc. at its debtor-affiliates' Amended Chapter 11 Plan of Reorganization. Treatment of Claims The Plan, as published in the Troubled Company Reporter on Feb. 8, 2007, provides that holders of Allowed Administrative Expense Claims will be paid in full and in cash. On the Plan's effective date, the DIP obligations will be deemed allowed and paid indefeasibly in full in accordance with the terms of the DIP Agreement and DIP Order. Upon full payment of all DIP Obligations, all liens and security interests granted to secure those obligations will be terminated. Provided, however, that the particular provisions of the DIP Agreement that are specified to survive will survive. Existing letters of credit issued pursuant to the DIP Agreement will be cancelled and replaced with new letters of credit to be issued pursuant to the Exit Facility. Holders of Allowed Priority Tax Claim will receive cash on the later of the plan effective date or the date the claim became allowed, or equal annual cash payments together with interest to be determined by the Bankruptcy Court. Holders of Class A Allowed Priority Non-Tax Claims will also be paid in full in cash. At the sole option of the Debtors, holders of Class B Allowed Other Secured Claims will: (a) receive payment in full in cash plus post-commencement date interest; (b) have a reinstated claim; (c) receive the collateral securing their claim; or (d) receive a treatment that renders the claim unimpaired pursuant to Section 1124 of the Bankruptcy Code. Holders of Class C Allowed Second Lien Notes Claims will receive, in full satisfaction of their claim, their pro rata share of 100% of Reorganized Portrait Corp of America common stock. Holders of Class D Allowed Senior Notes and Other Unsecured Claims will receive their pro rata distribution of new warrants. Holders of Class E Allowed Convenience Class Claims will receive 1% of their allowed claim as payment. Holders of Class F Allowed Goldman Note Claims, Class G Allowed Old Preferred Equity Interests, Class H Allowed Old Common Equity Interests, and Class I Allowed Old Common Subsidiary Equity Interests will not receive anything under the plan. Goldman Note Claims refer to: -- the 13.75% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. These notes were guaranteed by Portrait Corporation of America Inc., American Studios Inc., PCA National LLC, PCA National of Texas LP, PCA Photo Corporation of Canada Inc., Photo Corporation of America Inc., and PCA Finance Corp; and -- the 16.5% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. About Portrait Corp. Portrait Corporation of America Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany, and the United Kingdom. The company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' Financial Advisor and Investment Banker. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. Peter J. Solomon Company serves as financial advisor for the Committee. At June 30, 2006, the Debtor had total assets of $153,205,000 and liabilities of $372,124,000. RADNOR HOLDINGS: Files Disclosure Statement in Delaware ------------------------------------------------------- Radnor Holdings Corporation and its debtor-affiliates filed with the United States Bankruptcy Court for the District of Delaware a Joint Disclosure Statement explaining their Chapter 11 Plan of Liquidation. Overview of the Plan The Plan provides for the orderly liquidation of substantially all of the Debtors' operating assets. The Debtors tell the Court that it agreed to sell all of their assets to TR Acquisition Co. Inc., an affiliate of Tennenbaum Capital Partners LLC, to maximize value to the Debtors' estate and to provide a vehicle to explore any and all restructuring alternatives. The Debtors said that the Plan also provides the holders with the best recovery possible. Treatment of Claims Under the Plan, DIP Facility, Administrative, and Priority Tax Claims will be paid in full. Holders of Assumed Liabilities and Non-Tax Priority Claims will also be paid in full, in cash equal to the unpaid portion of the face amount of each holder's claim. Each holder of Other Secured Claims will receive, either: a. cash equal to the value of the claim; b. the return of the holders' collateral securing their claims; or c. other treatment as agreed by the Debtor and the holder. Holders of Secured Lender Claims will receive all recoveries on causes of action and all other assets of the Debtors. Holders of General Unsecured Claims will receive a pro rata share of the initial distribution amount. All Intercompany, Subordinated, and Old Equity Interest Claims will not receive or retain any property from the Debtors under the Plan. A full-text copy of the Joint Disclosure Statement is available for a fee at: http://www.researcharchives.com/bin/download?id=070507042032 About Radnor Holdings Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation -- http://www.radnorholdings.com/-- manufactured and distributed a broad line of disposable food service products in the United States, and specialty chemicals worldwide. The Debtor and its affiliates filed for chapter 11 protection on Aug. 21, 2006 (Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher, represent the Debtors. Donald J. Detweiler, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, serve the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed total assets of $361,454,000 and total debts of $325,300,000. RADNOR HOLDINGS: US Trustee's Ch. 7 Conversion Plea Put on Hold --------------------------------------------------------------- Pursuant to a stipulation between Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, and Radnor Holdings Corporation and its debtor-affiliates, the U.S. Trustee's motion to convert the Debtors' Chapter 11 cases to Chapter 7 liquidation proceedings are held in abeyance following the Debtors' filing of their plan of reorganization on April 30, 2007. The stipulation, as approved by the U.S. Bankruptcy Court for the District of Delaware, provides that the U.S. Trustee will consent to her conversion motion being put on hold until such time as the Court denies confirmation the Debtors' plan of reorganization. If the Court denies confirmation of the plan, the Court will set a hearing on the conversion motion on the next scheduled omnibus hearing date, which is 14 days after the date of denial of confirmation. Reasons to Convert to Chapter 7 Ms. Stapleton argued that the Court should convert the Debtors' cases to Chapter 7 because there is a continuing loss to or diminution of the estate, there is no reasonable likelihood of rehabilitation or reorganization, and that the Debtors have failed to file the necessary and required operating reports. The Debtors have signaled their intention of completing a wind- down and piecemeal liquidation. In the absence of operating revenues to support these costs, which the Debtors do not have, the wind-down and piecemeal liquidation process is causing a continuing loss to the Debtor's estate, Ms. Stapleton reiterated. The Debtors have not shown that the benefit to be gained from remaining in chapter 11 justifies the attendant administrative expenses. Ms. Stapleton reminded the Court that the Debtors had sold substantially all of their assets. The Debtors claim to still possess certain assets to be liquidated, consisting of cash and causes of action. In spite of this, the Debtors are trying to hire liquidation professionals at a significant cost to administer the remaining assets, when a Chapter 7 trustee could suffice in handling these tasks, Ms. Stapleton contended. "What seems readily apparent, however, is that the Debtors' resources are thin and any significant cost outlays will make these cases administratively insolvent," argued Ms. Stapleton. About Radnor Holdings Based in Radnor, Pennsylvania, Radnor Holdings Corporation -- http://www.radnorholdings.com/-- manufactured and distributed a broad line of disposable food service products in the United States, and specialty chemicals worldwide. The Debtor and its affiliates filed for chapter 11 protection on Aug. 21, 2006 (Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher, represent the Debtors. Donald J. Detweiler, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, serve the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed total assets of $361,454,000 and total debts of $325,300,000. ROCKET PRINT: Creditors' Meeting Slated for May 18 -------------------------------------------------- Creditors of Rocket Print & Design Ltd. will meet at 11:45 a.m. on May 18 at: DTE Leonard Curtis DTE House Hollins Mount Bury BL9 8AT England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on May 16 at the offices of DTE Leonard Curtis. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. SHAW GROUP: Wins US$700 Mil. EPC Contract from American Electric ---------------------------------------------------------------- The Shaw Group Inc. has been awarded an engineering, procurement and construction contract by Southwestern Electric Power Company, a unit of American Electric Power, to build a new 600 MW electric generating plant in Hempstead County, Arkansas. SWEPCO is seeking the necessary regulatory approvals to build the plant from various Arkansas, Texas and Louisiana authorities. The John W. Turk, Jr. - Unit 1 facility will use an ultra- supercritical advanced pulverized clean coal combustion technology. By increasing steam pressure and temperatures, the facility will require less fuel per megawatt hour, resulting in increased efficiency and reduced emissions. The new plant is scheduled to be completed in mid-2011 at a total cost of approximately US$1.3 billion. Shaw's EPC contract is valued at approximately US$700 million. "We are very pleased to have been selected by AEP to design, engineer and construct this highly efficient, environmentally sound facility," J.M. Bernhard, Jr., Chairman, President and Chief Executive Officer of Shaw, said. "We are proud to combine Shaw's leadership in fossil power with our expertise in high alloy piping materials which are designed to withstand the high steam temperatures and pressures at the new facility. AEP is a leader in the use of this technology and we look forward to successfully delivering this generating plant to this valued client." About American Electric Power Headquartered in Columbus, Ohio, American Electric Power -- http://www.aep.com/-- delivers electricity to more than 5 million customers in 11 states in the U.S. AEP owns nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns an electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east and north Texas). Southwestern Electric Power Company -- http://swepco.com/-- serves over 464,000 customers in three states: 112,000 in western Arkansas, 176,000 in Northwest Louisiana, and 176,000 in East and North Texas. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. SHAW GROUP: Subsidiary Provides Furnace Equipment to Petrokemya --------------------------------------------------------------- The Shaw Group Inc.'s Shaw Stone & Webster business unit has signed two letters of intent to provide proprietary furnace equipment and professional services to Arabian Petrochemical Company -- Petrokemya, an affiliate of Saudi Basic Industries Corporation or SABIC, as part of the Olefins-1 Debottlenecking Project at an existing ethylene plant in Jubail Industrial City, Saudi Arabia. Shaw will provide two Ultra Selective Conversion(R) furnaces and detailed engineering, procurement and construction management services for the plant's expansion, which is expected to increase capacity by 20% and be completed by first quarter 2009. The value of Shaw's contract was not disclosed. J.M. Bernhard, Jr., Chairman, President and Chief Executive Officer of Shaw, said, "Our technology and engineering solutions continue to differentiate Shaw as the leader in the global ethylene market. This important project for Petrokemya further strengthens Shaw's leadership position in the Middle East in ethylene and other petrochemical processes." Shaw is an established leader in ethylene technology having provided technology, design, engineering and construction on more than 120 plants. Shaw's ethylene plants have a worldwide reputation for exceptionally high operational reliability, rapid start-up and superior performance. Since 1990, Shaw technology has been selected for 35% of the world's ethylene capacity increases. Shaw is currently providing technology and EPC services for a 1.3 million metric-ton ethylene plant for Eastern Petrochemical Company (SABIC affiliate), also known as SHARQ, in Al Jubail, Saudi Arabia. Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. SOLUTIA INC: Judge Beatty Okays Settlement Pact with FMC Corp. -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved a settlement agreement dated as of April 10 between Solutia Inc. and FMC Corp. The settlement agreement resolves litigation between the parties in the United States District Court for the Southern District of New York arising from the Astaris LLC joint venture. Solutia and FMC entered into a joint venture agreement in April 1999. The parties hoped Astaris could produce purified phosphoric acid using a wet-process technology developed by FMC. The technology was supposed to allow Astaris to produce PPA through a process that was less expensive and more efficient than the methods previously used by Solutia. Unfortunately, the technology did not perform as expected and the Astaris PPA plant in Idaho was closed in October 2003. Solutia filed an adversary proceeding against FMC in February 2004 alleging that FMC knew that shortcomings in the technology undermined the joint venture, but failed to disclose them. On FMC's request, the District Court assumed jurisdiction over the FMC Litigation on July 27, 2004. Solutia asserted seven claims against FMC in the FMC Litigation, of which three were dismissed. Following extensive discovery, the District Court granted FMC's request for summary judgment in part, limiting Solutia's claims for breach of fiduciary duty, fraud and negligent misrepresentation to one particular theory. Additionally, the District Court struck Solutia's jury demand. Shortly after the FMC Litigation was filed, Solutia and FMC began settlement discussions that continued in 2005 in connection with the decision by FMC and Solutia to explore a possible sale of Astaris. On September 1, 2005, Astaris, Solutia and FMC entered into an asset purchase agreement with Israel Chemicals Limited and one of its subsidiaries, pursuant to which Astaris agreed to sell substantially all of its assets to ICL for US$225,000,000 in cash and the assumption by ICL of certain related liabilities. FMC and Solutia agreed that the FMC Litigation would not be affected by the sale of Astraris. On Oct. 14, 2005, both parties appeared before United States Magistrate for court-ordered mediation, but could not resolve the issues. Settlement talks occurred sporadically throughout 2006. Solutia and FMC again engaged in arm's-length negotiations to settle the FMC Litigation during the weeks leading to the April 2 trial date. The parties reached a settlement with the salient terms: -- FMC will pay Solutia US$22,500,000 in cash; -- the settlement payment will be made within five business days after the period for appealing the Bankruptcy Court's order approving the Proposed Settlement expires; -- Solutia will dismiss the FMC Litigation with prejudice within 20 days after FMC makes the settlement payment; -- Solutia, with the cooperation of FMC, will secure the Bankruptcy Court's approval of the Proposed Settlement; -- they will exchange mutual releases of all claims relating to the dispute; -- Solutia and FMC will recommend to the District Court that the trial be stayed during the Bankruptcy Court approval process and that the District Court retain jurisdiction over the case until resolution of the Bankruptcy Court approval process; and -- the fees and costs of the FMC Litigation will be borne by each party. Solutia relates that the proposed settlement enables its estate to avoid the costs of prosecuting the FMC Litigation through a trial and an almost certain appeal. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Wants Deal with GE Capital on Contested Leases OK'd ---------------------------------------------------------------- Pursuant to Rule 9019(a) of the Federal Rules of Bankruptcy Procedure, Solutia Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement agreement among Solutia, CPFilms Inc. and General Electric Capital Corporation. David A. Warfield, Esq., at Blackwell Sanders Peper Martin LLP, in St. Louis, Missouri, relates that before the Debtors' bankruptcy filing, the Debtors and GE Capital entered into numerous lease agreements whereby the Debtors agreed to lease certain personal property from GE Capital or its predecessors in interest. On Dec. 16, 2004, GE Capital filed a request for, among others, payment of postpetition lease obligations, and compelling immediate assumption or rejection of leases. In their response to GE's request, the Debtors argued that five of the leases were not true leases and should be recharacterized as security interests: -- Master Lease Agreement entered into between Mellon US Leasing and Solutia dated July 23, 1999; -- Master Lease Agreement entered into between Lease Plan U.S.A., Inc., and Solutia dated Oct. 24, 2001; -- Master Lease Agreement entered into between GE Capital and CPFilms dated Oct. 15, 2001; -- Equipment Lease Agreement entered into by GE Capital and Solutia dated Jan. 1, 2001; and -- Master Lease Agreement entered into by Emerson Financial Services and Solutia dated June 19, 2001. GE Capital contended that the Contested Leases are true leases. The Debtors thoroughly investigated the Contested Leases. The Debtors obtained appraisals of the equipment, which was the subject of the Contested Leases from SB Capital. The Debtors also retained NERA as a potential expert witness in connection with the hearing on GE Capital's request and reviewed the preliminary expert report. The Debtors and GE Capital also exchanged written discovery. GE Capital and the Debtors scheduled a settlement meeting for March 12, 2007 where the parties were able to agree upon the terms of a Settlement Agreement, which resolves all outstanding issues posed by the GE Capital Motion and the Contested Leases. The salient terms of the Settlement Agreement are: (1) Solutia will assume the Maryville Lease and restructure the payments due thereunder so that Solutia will pay GE Capital US$37,000 per month for 72 months; (2) CPFilms will assume the CPFilms Lease and restructure the payments due thereunder so that CPFilms will pay GE Capital US$5,000 per month for 72 months; (3) Solutia and CPFilms will each retain the right to purchase the equipment that is the subject of the Maryville Lease and CPFilms Lease at the end of the respective lease terms by paying to GE Capital the then fair market value of the equipment; (4) The Indian Orchard, Atlanta, and Pensacola Leases will each be terminated and GE Capital will convey all its interests in the affected equipment to Solutia; (5) GE Capital will be allowed a secured claim of US$100,000 against Solutia, which will be paid upon the effective date of any plan of reorganization proposed by the Debtors, as well as a general unsecured claim of US$540,000 against Solutia; (6) GE Capital will withdraw all other proofs of claim that it filed in connection with the Contested Leases. (7) The Debtors and GE Capital will exchange mutual releases with respect to all claims that may exist with respect to the Contested Leases. The Debtors and GE Capital identified a number of leases where there are no existing disputes. The parties will continue to perform their respective obligations and duties with respect to the Uncontested Leases. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). VISIONCRAFT LTD: Creditors' Meeting Slated for May 22 ----------------------------------------------------- Creditors of Visioncraft Ltd. will meet at 2:30 p.m. on May 22 at: 1 Kings Avenue Winchmore Hill London N21 3NA England A list of names and addresses of the company's creditors will be available for inspection free of charge on May 21. * UK Corporate Insolvencies Down 2.8% in First Quarter 2007 ----------------------------------------------------------- The DTI Insolvency Service and Companies House Executive Agencies released the official insolvency statistics in the United Kingdom for the first quarter 2007 on May 4. Company Liquidations There were 3,113 liquidations in England and Wales in the first quarter of 2007 on a seasonally adjusted basis. This was a decrease of 2.8% on the previous quarter and a decrease of 11.6% on the same period a year ago. This was made up of 1,392 compulsory liquidations, a decrease of 1.0% on the previous quarter and a decrease of 5.7% on the corresponding quarter of the previous year, and 1,721 creditors voluntary liquidations, a decrease of 4.2% on the previous quarter and a decrease of 15.8% on the corresponding quarter of the previous year. About 0.6% of active companies went into liquidation in the twelve months ended Q1 2007, the same as the previous quarter and down from 0.7% in the corresponding quarter of 2006. Individual Insolvencies There were 30,075 individual insolvencies in England and Wales in the first quarter of 2007 on a seasonally adjusted basis. This was an increase of 1.2% on the previous quarter and an increase of 23.9% on the same period a year ago. This was made up of 16,842 bankruptcies, a decrease of 1.3% on the previous quarter and an increase of 10.0% on the corresponding quarter of the previous year, and 13,233 Individual Voluntary Arrangements (IVAs), an increase of 4.7% on the previous quarter and an increase of 47.6% on the corresponding quarter of the previous year. Number of Insolvencies in England and Wales (seasonally adjusted) % change 2006 2006 2006 2006 2007 Q1 on: 2007 Q1r Q2r Q3r Q4r Q1p Q4 Q1 2006 2006 Company 3,520 3,165 3,250 3,202 3,113 -2.8 -11.6 Liqui- dations of which: Compulsory 1,475 1,201 1,335 1,406 1,392 -1.0 -5.7 Creditors 2,044 1,964 1,914 1,796 1,721 -4.2 -15.8 Voluntary Individ's 24,274 25,869 27,430 29,715 30,075 1.2 23.9 of which: Bank'cies 15,310 15,090 15,486 17,070 16,842 -1.3 10.0 IVAs 8,964 10,779 11,944 12,645 13,233 4.7 47.6 * p = provisional, r = revised Insolvencies in Scotland and Northern Ireland The following tables present recent trends in insolvencies in Scotland and Northern Ireland, complementing those for England and Wales above (longer series back to 1998 are presented in the accompanying detailed tables). Number of Insolvencies in Scotland (not seasonally adjusted) % change 2006 2006 2006 2006 2007 Q1 on: 2007 Q1 Q2 Q3 Q4 Q1p Q4 Q1 2006 2006 Company 128 133 156 132 166 25.8 29.7 Liquidations of which: Compulsory 96 99 132 89 132 48.3 37.5 Creditors 32 34 24 43 34 -20.9 6.3 Voluntary Individuals 3,111 3,544 3,601 3,382 3,471 2.6 11.6 of which: Seques- 1,241 1,305 1,528 1,356 1,505 11.0 21.3 trations Protected 1,870 2,239 2,073 2,026 1,966 -3.0 5.1 Trust Deeds * p = provisional Number of Insolvencies in Northern Ireland (not seasonally adjusted) % change 2006 2006 2006 2006 2007 Q1 on: 2007 Q1 Q2 Q3 Q4 Q1p Q4 Q1 2006 2006 Company 29 41 28 30 36 20.0 24.1 Liquidations of which: Compulsory 19 24 15 20 29 45.0 52.6 Creditors 10 17 13 10 7 -30.0 -30.0 Voluntary Individuals 408 495 425 482 343 -28.8 -15.9 of which: Bankruptcies 245 286 241 264 218 -17.4 -11.0 IVAs 163 209 184 218 125 -42.7 -23.3 * p = provisional Insolvent companies in England & Wales and Scotland are dealt with under the Insolvency Act of 1986 and, in Northern Ireland, by the Insolvency (Northern Ireland) Order 1989. They can either be the subject of a compulsory liquidation (winding-up) order obtained from the court by a creditor, shareholder or director or themselves pass a resolution, subject to the approval of a creditors' meeting that the company be wound up voluntarily (creditors voluntary liquidations, registered at Companies House/Companies Registry). A third type of winding- up, members' voluntary liquidation, is not included because it does not involve insolvency. The Insolvency Act 1986 and, in Northern Ireland, the Insolvency (Northern Ireland) Order 1989 also introduced the procedures of company administration orders and company voluntary arrangements (CVAs). The administration procedure gives a period of time during which creditors are restrained from taking action and a court appointed administrator puts forward proposals to deal with the company's financial difficulties. The CVA procedure aids business by enabling a company in financial difficulty to come to a binding agreement with its creditors. The primary objective of administration (and of CVAs) is the rescue of the company as a going concern. Receivership appointments comprise administrative receivers appointed under the 1986 Act (and the 1989 Order for Northern Ireland) and certain other receivership appointments, for example under the Law of Property Act 1925. Due to the use of the same statutory documentation for different types of receivership, it is not possible to give a breakdown between them. The provisions of the Enterprise Act 2002 [section 250] (Insolvency [Northern Ireland] Order 2005 [Article 5]) have made some changes to the procedures for administrative receivership. ********* 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. 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