/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070518.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, May 18, 2007, Vol. 8, No. 98 Headlines A U S T R I A HUBER DISKOTHEKEN: Claims Registration Period Ends June 13 MERI LLC: Claims Registration Period Ends June 5 ORI LLC: Claims Registration Period Ends June 7 PRIVATBRAUEREIEN HOLDING: Creditors' Meeting Slated for May 30 SAN TEAM: Claims Registration Period Ends June 18 SKALS INNENAUSBAU: Claims Registration Period Ends June 7 STEROVSKY KG: Claims Registration Period Ends June 6 YES! HANDEL: Claims Registration Period Ends June 6 C Z E C H R E P U B L I C TEXLEN TRUTNOV: Eyes 200 Job Cuts by End of July 2007 EASTMAN KODAK: Fitch Lifts Rating on US$1.15-Bil. Term Loan to B F R A N C E ACCESSOIRE DIFFUSION: Court Okays Vivarte's Proposed Acquisition BAUSCH & LOMB: Inks US$4.5 Bln Merger Deal with Warburg Pincus BAUSCH & LOMB: Moody's Reviews Ratings Over Warburg Merger Deal BAUSCH & LOMB: Fitch Holds Watch Neg. Despite Warburg Sale Pact BAUSCH & LOMB: US$4.5 Bln Warburg Deal Cues S&P to Lower Rating CHEMTURA CORP: Moody's Cuts US$1.05 Billion Notes to Ba2 EUROTUNNEL GROUP: Eyes EUR4 Billion Debt Reduction Under Plan SMOBY-MAJORETTE: MGA Acquires Breuil's 51% Stake for EUR1 G E R M A N Y A. BEHRENS-MANNERMODE: Claims Registration Period Ends June 15 A. GEISLER: Creditors' Meeting Slated for June 20 AQUA-MEMBRANTECHNOLOGIE: Claims Registration Period Ends June 29 AUTOCENTER GEORGE: Claims Registration Period Ends June 18 BENQ CORP: Inks Memorandum of Intent to Sell Brazilian Plant BRAUER SERVICE: Claims Registration Period Ends June 4 DAIMLERCHRYSLER: Chrysler Posts EUR1.49 Bln First Quarter Loss DIECKMANN GMBH: Claims Registration Period Ends June 5 ERNST PAUL: Hans Rudolf Wohrl Abandons Acquisition Plans ESBL GMBH: Claims Registration Period Ends July 25 F.W. PLANBAU: Claims Registration Period Ends June 8 FAIR-BAU VERWALTUNGS: Claims Registration Ends June 4 FORUM WOHNUNGSBAUGESELLSCHAFT: Claims Registration Ends June 26 FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating HBG - SCHALTANLAGENBAU: Claims Registration Ends June 7 KARL HOFMANN: Creditors Must Register Claims by June 5 KLICK-BILDERBOX.DE GMBH: Creditors Must File Claims by June 25 KOBES POLUBIEC: Creditors Must Register Claims by June 14 KORNFELD MEDIA: Creditors Must Register Claims by June 11 LEIPZIG-WEST: Ex-Shareholder Faces Fraud Charges in German Court MYLAN LABORATORIES: Buying Merck's Generics Biz for EUR4.9 Bln PERI-WERK: High Profitability Cues Moody's to Lift Rating to Ba1 SCHAE VAN: Claims Registration Period Ends June 15 SIEGEL + GLASMEYER: Claims Registration Period Ends June 12 SPASS IN DORMAGEN: Claims Registration Period Ends June 8 UNIQUE-TRANS VERWALTUNGS: Claims Registration Ends June 15 WIMATHERM KLIMATECHNIK: Claims Registration Period Ends July 4 I R E L A N D BENCHMARK ELECTRONICS: Pemstar Buy Cues S&P to Remove Watch SHAMROCK CAPITAL: Moody's Puts Low-B Ratings to Two Note Classes I T A L Y DANA CORP: Wants to Buy Manufacturing Plants from Non-Debtor Arm DANA CORP: To Terminate Non-Union Pension Benefits on July 1 PARMALAT SPA: U.S. Court Moves Injunction Hearing to June 21 PARMALAT SPA: Earns EUR111.1 Million for First Quarter 2007 K A Z A K H S T A N ADILET KURYLYS: Creditors Must File Claims by June 1 AGENCY DEMI: Creditors' Claims Due June 22 ARKA-AGRO LLP: Claims Filing Period Ends June 15 CANARGO ENERGY: Posts US$5.9 Mln Net Loss in Qtr Ended March 31 KAZ BIDAI: Proof of Claim Deadline Slated for June 1 KEMER OJSC: Claims Registration Ends June 22 MAESTRO PLUS: Proof of Claim Deadline Slated for June 1 NAN-ATBASAR LLP: Claims Filing Period Ends June 15 NOVAYA JIZN: Creditors' Claims Due June 1 STRELA-EXPRESS TRANSSERVICE: Claims Registration Ends June 22 K Y R G Y Z S T A N MULTIPLEKS INC: Creditors Must File Claims by July 4 N E T H E R L A N D S ARES EURO CLO I: Moody's Rates EUR19.5 Million Notes at Low B AUDATEX HOLDINGS: Moody's Lifts Rating to B1 After Parent IPO P O L A N D INTERBROK INVESTMENTS: Polish Court Rules Bankruptcy SPCM SA: Moody's Affirms B3 Rating on Sr. Unsecured Notes P O R T U G A L NOBLE GROUP: Moody's Affirms Upcoming Bond Issue at Ba1 R U S S I A AGRO-KHIM: Creditors Must File Claims by May 28 BAZHENOVSKIY OJSC: Creditors Must File Claims by June 28 BUCYRUS INTL: Underwriters Buy Additional 692,000 Class A Stock DIARY PRODUCT: Creditors Must File Claims by May 28 GOLDEN TELECOM: Net Income Dips 33% to US$12.6 Mln in Q1 2007 KUEDINSKIY BREWERY: Court Starts Bankruptcy Supervision Process MUROMSKIY ENGINEERING: Court Names A. Selishev to Manage Assets NIZHNEE LLC: Court Starts Bankruptcy Supervision Procedure PONOMAREVSKIY BUTTER: Bankruptcy Hearing Slated for June 6 PUSHKARSKAYA OJSC: Creditors Must File Claims by June 28 RAZDOLYE CJSC: Creditors Must File Claims by June 28 RITZIO ENTERTAINMENT: S&P Holds B Corporate Credit Rating ROSNEFT OIL: Anti-Monopoly Service to Okay Yukos Asset Purchases SPETS-SERVICE OJSC: Creditors Must File Claims by May 28 STROY-DETAIL LLC: Creditors Must File Claims by June 28 SV-GAS CJSC: Creditors Must File Claims by June 28 VICTORIA OJSC: Creditors Must File Claims by June 28 VOROBYEVO OJSC: Creditors Must File Claims by May 28 YUKOS OIL: Anti-Monopoly Service to Okay Assets Sold to Rosneft YUKOS OIL: Anti-Monopoly Service Denies Asset Sale to Promregion S P A I N ANIXTER INTERNATIONAL: Earns US$53.6 Million in First Quarter CONSUMO BANCAJA: Fitch Affirms CCC Rating on EUR12.9 Mil. Notes INFOR GLOBAL: Workbrain Purchase Cues S&P to Hold B- Rating U.S. STEEL: S&P Rates US$900 Million Notes Offering at BB+ S W I T Z E R L A N D BIZIM MARKET: Creditors' Liquidation Claims Due May 29 BLUE JEANS: Creditors' Liquidation Claims Due May 30 BRUMA HANDELS: Bern Court Starts Bankruptcy Proceedings BUCHHANDLUNG TAT: Creditors' Liquidation Claims Due May 30 CHRISTENSEN CONSULTING: Creditors' Liquidation Claims Due May 31 CIDARIS CONSULTING: Creditors' Liquidation Claims Due May 31 DEULEN JSC: Creditors' Liquidation Claims Due May 30 NILORN SWITZERLAND: Creditors' Liquidation Claims Due May 30 SIS SEGAINTERSETTLE: Moody's Holds Low B Rating on Merger News SMC CONSULTING: Creditors' Liquidation Claims Due May 31 STAUDT ISOLIERTECHNIK: Creditors' Liquidation Claims Due May 31 U K R A I N E ENERGY INDUSTRIAL: Creditors Must File Claims by May 24 FLETCHER STUFF: Creditors Must File Claims by May 24 FORTEX-2004: Creditors Must File Claims by May 24 GRINTSEVO AGRICULTURAL: Claims Filing Bar Date Set May 23 INDUSTRIAL KITTING-C: Creditors Must File Claims by May 24 INDUSTRIAL TERMINAL: Creditors Must File Claims by May 24 INTEX SERVICE: Creditors Must File Claims by May 24 PRODUCTS DELIVERY: Creditors Must File Claims by May 24 RUBANKA LLC: Creditors Must File Claims by May 23 TECHNICAL TRADE: Creditors Must File Claims by May 24 UKRAINIAN INTERNATIONAL: Fitch Rates US$125 Mln. Bonds at B- U N I T E D K I N G D O M ADVANSTAR COMMS: Veronis Acquisition Cues Moody's Junk Rating ALBANY BUILDING: Brings In Administrators from Ernst & Young AMF BOWLING: Moody's Junks Proposed Sr. Sec. Credit Facilities AMF BOWLING: S&P Rates US$270 Million Facilities at B+ AUTOPUMPS INTERNATIONAL: Taps Begbies Traynor as Administrators BIG DISPLAY: Claims Filing Period Ends August 31 BRETT ESSEX: Creditors' Meeting Slated for May 30 COLLINS & AIKMAN: Canadian Unit Files for CCAA Protection CONCARGO LTD: Appoints Joint Administrators from BDO Stoy EUROTUNNEL GROUP: Eyes EUR4 Billion Debt Reduction Under Plan FERRYSCOTT LTD: Brings In Administrators from Deloitte & Touche FORD MOTOR: Founding Family Members Deny Equity Sale Talks FORD MOTOR: Finance Arm Sells US$1.5-Billion Debt, Reuters Says FORD MOTOR: High Ct. Wants Lower Courts to Review US$82.6M Award G.P. TURNER: Appoints PwC as Joint Administrators GENERAL MOTORS: Mulls Sale of Midsize Truck Unit to Navistar HOMEWORKS MIDLANDS: Names Roderick Graham Butcher Liquidator INT'L RECTIFIER: Reporting Delay Cues Fitch to Watch Ratings KLASS ACT: Creditors' Meeting Slated for May 22 KRONOS INC: Moody's Junks US$390 Million Second Lien Term Loan LAURENCE SCOTT: Brings In Administrators from Kroll LEEDS UNITED: Creditors' Meeting Slated for June 1 LEVEL 3: European Group Inks Network Deal with Easynet MARIX DRUG: Hires Liquidator from Monahans MELROSE FINANCING: Moody's Rates Three Class D Notes at Ba2 PISTOL MARKETING: Joint Liquidators Take Over Operations PREGIS CORP: S&P Lifts Rating on EUR100 Million Notes to B+ QUEEN STREET: Moody's Rates EUR18 Mln Class E Notes at (P)Ba3 * BOOK REVIEW: Black Monday: The Stock Market Catastrophe of October 19, 1987 ********* ============= A U S T R I A ============= HUBER DISKOTHEKEN: Claims Registration Period Ends June 13 ---------------------------------------------------------- Creditors owed money by KEG Huber Diskotheken (FN 276324i) have until June 13 to file written proofs of claim to court-appointed estate administrator Andrea Prochaska at: Mag. Andrea Prochaska Wassergasse 33/12 1030 Vienna Austria Tel: 01/718 77 50 Fax: 01/718 77 50 15 E-mail: kanzlei@andrea.prochaska.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 27 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Bruck an der Leitha, Austria, the Debtor declared bankruptcy on April 24 (Bankr. Case No. 36 S 60/07a). MERI LLC: Claims Registration Period Ends June 5 ------------------------------------------------ Creditors owed money by LLC Meri (FN 134882g) have until June 5 to file written proofs of claim to court-appointed estate administrator Stefan Kohlfuerst at: Mag. Stefan Kohlfuerst c/o Dr. Heimo Hofstatter Advocacy OEG Hofstatter & Kohlfuerst Marburgerkai 47 8010 Graz Austria Tel: 0316/815454-0 Fax: 0316/815454-22 E-mail: advokat@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on June 14 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 222 Second Floor Graz Austria Headquartered in Hart bei Graz, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 26 S 27/07a). Heimo Hofstatter represents Mag. Kohlfuerst in the bankruptcy proceedings. ORI LLC: Claims Registration Period Ends June 7 ----------------------------------------------- Creditors owed money by LLC Ori (FN 265334y) have until June 7 to file written proofs of claim to court-appointed estate administrator Wolfgang Leitner at: Dr. Wolfgang Leitner c/o Dr. Helmut Platzgummer Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-mail: kanzlei@lp-law.at helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:15 p.m. on June 21 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 6 S 50/07f). Helmut Platzgummer represents Dr. Leitner in the bankruptcy proceedings. PRIVATBRAUEREIEN HOLDING: Creditors' Meeting Slated for May 30 -------------------------------------------------------------- Creditors owed money by LLC Privatbrauereien Holding und Betreiber (FN 273183s) are encouraged to attend the first creditors' meeting at 9:45 a.m. on May 30. The creditors' meeting will be held at: The Land Court of Leoben Hall 4 First Floor Leoben Austria The Court will also examine the claims at 10:00 a.m. on June 20, at the same venue. Creditors have until June 5 to file written proofs of claim to court-appointed estate administrator Herbert Ortner at: Mag. Herbert Ortner Hauptplatz 57 8570 Voitsberg Austria Tel: 03142-22303 Fax: 03142-22303-6 E-mail: office@recht-kompetent.at Headquartered in St. Georgen ob Murau, Austria, the Debtor declared bankruptcy on April 23 (Case No. 17 S 35/07a). SAN TEAM: Claims Registration Period Ends June 18 ------------------------------------------------- Creditors owed money by LLC San Team (FN 153452s) have until June 18 to file written proofs of claim to court-appointed estate administrator Michael Kaintz at: Dr. Michael Kaintz Gartenweg 108 7100 Neusiedl am See Austria Tel: 02167/8296-0 Fax: 02167/8296-20 E-mail: ra_kaintz@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on July 2 for the examination of claims. The meeting of creditors will be held at: The Land Court of Eisenstadt Hall F Eisenstadt Austria Headquartered in Parndorf, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 26 S 48/07x). SKALS INNENAUSBAU: Claims Registration Period Ends June 7 --------------------------------------------------------- Creditors owed money by LLC Skals Innenausbau (FN 248806t) have until June 7 to file written proofs of claim to court-appointed estate administrator Clemens Richter at: Mag. Clemens Richter c/o Mag. Daniel Lampersberger Esteplatz 4 1030 Vienna Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at noon on June 21 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 6 S 49/07h). Daniel Lampersberger represents Mag. Richter in the bankruptcy proceedings. STEROVSKY KG: Claims Registration Period Ends June 6 ---------------------------------------------------- Creditors owed money by KG Sterovsky (FN 231732h) have until June 6 to file written proofs of claim to court-appointed estate administrator Johannes Jaksch at: Dr. Johannes Jaksch c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 01/713 44 33 Fax: 01/713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on June 20 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Nodendorf, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 36 S 57/07k). Stephan Riel represents Dr. Jaksch in the bankruptcy proceedings. YES! HANDEL: Claims Registration Period Ends June 6 --------------------------------------------------- Creditors owed money by LLC Yes! Handel (FN 207639b) have until June 6 to file written proofs of claim to court-appointed estate administrator Johannes Jaksch at: Dr. Johannes Jaksch c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 01/713 44 33 Fax: 01/713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on June 20 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Maria Enzersdorf, Austria, the Debtor declared bankruptcy on April 23 (Bankr. Case No. 36 S 55/07s). Stephan Riel represents Dr. Jaksch in the bankruptcy proceedings. =========================== C Z E C H R E P U B L I C =========================== TEXLEN TRUTNOV: Eyes 200 Job Cuts by End of July 2007 ----------------------------------------------------- (rewrite/joy) Czech textile firm Texlen Trutnov is planning to lay off approximately 200 employees by the end of July 2007, The Financial Times reports citing Czech Republic Business Bulletin as its source. The job cut will leave Texlen Trutnov with just about 400 employees. Meanwhile, Frydek-Mistek, North Moravia-based rival textile maker Slezan showed interest in acquiring Texlen Trutnov, Czech Business Weekly relates. According to CWB, Slezan would act as a strategic investor in an effort to save the 400 remaining jobs. As previously reported in the TCR-Europe on April 26, 2007, the Trutnov Labour Office has paid 903 employees of Texlen Trutnov a total of CZK21.5 million in unpaid wages for January and February. In March, the Regional Court in Hradec Kralove declared Texlen Trutnov bankrupt after parent company Texlen Linen entered bankruptcy proceedings. Texlen's board of directors told CTK some banks demanded the early repayment of loans and blocked its accounts after a potential investor ended due diligence at the company with a negative result. The lenders' demands prompted the Czech textile group's insolvency. EASTMAN KODAK: Fitch Lifts Rating on US$1.15-Bil. Term Loan to B ---------------------------------------------------------------- Fitch Ratings has upgraded Eastman Kodak Company's senior unsecured debt to 'B/RR4' from 'B-/RR5' due to improved recovery prospects following the company's redemption on May 3, 2007, of a US$1.15 billion secured term loan funded with a portion of the proceeds from the sale of its Health Group to Onex Healthcare Holdings, Inc., for US$2.35 billion on April 30, 2007. In addition, Fitch has affirmed these Kodak ratings: -- Issuer Default Rating 'B'; -- Secured credit facility 'BB/RR1'. The Rating Outlook remains Negative and is reviewed quarterly for signs of earnings stability, with particular near-term focus on year-over-year revenue growth for digital products within the Consumer Digital Imaging Group, improvement in operating profit margin for the Graphic Communications Group, and sales trends, retail distribution efforts and any manufacturing constraints for the company's recently introduced lineup of consumer inkjet printers. In addition, Fitch continues to monitor the outcome of Kodak's ongoing review of potential uses for the approximately US$1.2 billion of remaining proceeds from the divesture of the Health Group. The company has indicated that a portion of the remaining proceeds is located outside of the U.S., requiring the development of a tax-efficient repatriation strategy before the cash is available for acquisitions of U.S.- based companies, share repurchases, further debt reduction, and incremental dividends. Fitch believes the most likely uses for the US$1.2 billion of excess cash, which is based on the company's stated minimum cash balance of US$1 billion, are acquisitions and share repurchases. The updated Recovery Ratings and notching reflect Fitch's recovery expectations under a distressed scenario considering Kodak's divestiture of the Health Group and full redemption of its secured term loan. Fitch continues to believe that the enterprise value of the company, and thus, recovery rates for its creditors, will be maximized in a restructuring scenario (going concern) rather than a liquidation scenario. In deriving a distressed enterprise value, Fitch applies a 50% discount to Kodak's estimated operating EBITDA of approximately US$1 billion for the latest 12 months ended March 31, 2007, excluding the Health Group. The EBITDA discount reflects the estimated percentage decline in EBITDA necessary to violate the secured credit agreement's leverage ratio of 3.5 times. Fitch then applies a 4x distressed EBITDA multiple, which considers Kodak's current multiple and multiples paid for prior acquisitions, given that a stress event would indicate business model difficulties and multiple contraction. As is standard with Fitch's recovery analysis, the revolver is fully drawn and cash balances fully depleted to reflect a stress event. The current 'RR1' Recovery Rating for Kodak's secured bank facility reflects Fitch's belief that 100% recovery is realistic. The 'RR4' Recovery Rating for the senior unsecured debt reflects Fitch's estimate that a recovery of 30%-50% would be achievable, up from previous recovery expectations of only 10%-30% prior to the redemption of the secured term loan. Total liquidity (cash and committed credit facility availability) increased to approximately US$3.2 billion as of May 3, 2007, from US$2.5 billion as of Dec. 31, 2006, due to the net proceeds after debt reduction from the sale of the Health Group less cash usage in Kodak's seasonally weak first quarter of 2007. Total liquidity includes an undrawn US$1 billion secured revolving credit facility due Oct. 18, 2010 (US$856 million net of letters of credit as of March 31, 2007). Free cash flow for the LTM ended March 31, 2007, including the Health Group, increased to US$587 million from US$396 million in the year-ago period due primarily to a reduction in capital expenditures and lower cash restructuring payments, which remain significant for fiscal 2007 at approximately US$600 million. Total debt declined to approximately US$1.6 billion subsequent to the repayment of the secured term loan on May 3, 2007, down from US$2.8 billion as of Dec. 31, 2006. As a result, Fitch estimates leverage (debt/operating EBITDA) declined to 1.6x compared with approximately 2.9x at Dec. 31, 2006, excluding the Health Group. Fitch estimates interest coverage (operating EBITDA/gross interest expense) improved to approximately 12x from nearly 6x for the LTM ended Dec. 31, 2006, excluding the Health Group. Fitch believes the company's near-term debt maturities are manageable, as the next material debt maturity is not until 2008, when approximately US$250 million of debt matures. 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. =========== F R A N C E =========== ACCESSOIRE DIFFUSION: Court Okays Vivarte's Proposed Acquisition ---------------------------------------------------------------- The commercial court of Lyons accepted Vivarte S.A.'s offer to acquire two of Accessoire Diffusion's three brands, The Financial Times reports citing Le Figaro as its source. According to the report, Vivarte will acquire the Accessoire Diffusion and Accessoire Detente brands while brand Ludi Bleu will remain under Financiere Plastigom's control. Vivarte will take over four of Accessoire's eight stores. The company's manufacturing site in Saint-Symphorien-sur-Coise is set to close at the end of the month. Out of the company's 63 employees, only five will keep their jobs, FT relates. Headquartered in Saint-Symphorien-sur-Coise, France, Accessoire Diffusion -- http://www.accessoire-diffusion.com/-- is one of the oldest European ladies' shoe manufacturers. It designed, made, and distributed its own brand names like Accessoire Diffusion, Accessoire Detente and Lundi Bleu for over 30 years. For the year 2006, it posts turnover of EUR8 million. It filed for bankruptcy in 1997 and 2002. Financiere Plastigom bought the company in 2002. Accessoire was placed in receivership in April 2007. BAUSCH & LOMB: Inks US$4.5 Bln Merger Deal with Warburg Pincus -------------------------------------------------------------- Bausch & Lomb Inc. entered into a definitive merger agreement with affiliates of Warburg Pincus, the global private equity firm, in a transaction valued at approximately US$4.5 billion, including approximately US$830 million of debt. Under the terms of the agreement, affiliates of Warburg Pincus will acquire all of the outstanding shares of Bausch & Lomb common stock for US$65 per share in cash. This represents a premium of approximately 26% over the volume weighted average price of Bausch & Lomb's shares for 30 days prior to press reports of rumors regarding a potential acquisition of the company. Bausch & Lomb's Board of Directors, following the recommendation of a Special Committee composed entirely of independent directors, has unanimously approved the agreement and recommends that Bausch & Lomb shareholders approve the merger. "After extensive negotiations and careful and thorough analysis, together with our independent advisors, the Special Committee and our board have unanimously endorsed this transaction as in the best interest of the Company and our shareholders," William H. Waltrip, lead director and chairman of the Special Committee of the Bausch & Lomb Board of Directors, said. "We are pleased that this transaction appropriately recognizes the value of Bausch & Lomb's highly respected brand and innovative products in the eye care industry, while providing our shareholders with an immediate and substantial cash premium for their investment in Bausch & Lomb." "We believe this transaction with Warburg Pincus is good for the Company's employees, partners in the eye care profession, and customers, as well as our shareholders," Ronald L. Zarrella, chairman and CEO of Bausch & Lomb, said. "As a private company, Bausch & Lomb will have greater flexibility to focus on our long-term strategic direction to be a global leader in providing innovative and technologically advanced eye health products to eye care professionals and consumers. We are proud to partner with Warburg Pincus, a distinguished firm with a strong reputation and proven track record of success in acquiring and guiding healthcare companies. Warburg Pincus understands our industry and our business well, and will be a tremendous asset as we build upon our leadership position and continue to implement our strategic plan to deliver enhanced value for our customers worldwide. The firm shares our confidence in Bausch & Lomb's future and will support our people in achieving our long- term goals. Our success is driven by the ongoing efforts of our talented employees around the world and I thank them for their continued hard work and dedication. We look forward to working with Warburg Pincus to quickly complete the transaction." "Bausch & Lomb is an exceptional company, with significant potential and a strong commitment to its employees, partners and customers worldwide," Elizabeth H. Weatherman, a Warburg Pincus managing director, said. Ms. Weatherman, who leads the firm's medical device investment activities, added, "This investment reflects a unique blend of our deep domain expertise in medical technology, pharmaceuticals and healthcare, which has been a focus area for Warburg Pincus since 1973." The transaction is subject to certain closing conditions, including the approval of Bausch & Lomb's shareholders, regulatory approvals and the satisfaction of other customary closing conditions. There is no financing condition to consummate the transaction. Bausch & Lomb expects to hold a Special Meeting of Stockholders to consider and vote on the proposed merger and merger agreement, among other things. The transaction is expected to close promptly following the satisfaction of all closing conditions. Under the merger agreement, Bausch & Lomb may solicit superior proposals from third parties during the next 50 calendar days. To the extent that a superior proposal solicited during this period leads to the execution of a definitive agreement, Bausch & Lomb would be obligated to pay a US$40 million break-up fee to affiliates of Warburg Pincus. In accordance with the agreement, the Board of Directors of Bausch & Lomb, through its Special Committee and with the assistance of its independent advisors, intends to solicit superior proposals during this period. In addition, Bausch & Lomb may, at any time, subject to the provisions of the merger agreement, respond to unsolicited proposals. Bausch & Lomb advises that there can be no assurance that the solicitation of superior proposals will result in an alternative transaction. Bausch & Lomb does not intend to disclose developments with respect to this solicitation process unless and until its Board of Directors has made a decision regarding any alternative proposals. Morgan Stanley & Co. Incorporated is acting as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and has delivered a fairness opinion. Wachtell Lipton Rosen & Katz is acting as legal counsel to the Special Committee in this transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as the financial advisors to Warburg Pincus, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to Warburg Pincus. About Bausch & Lomb Bausch & Lomb (NYSE:BOL) -- http://www.bausch.com/-- is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Founded in 1853, the company is headquartered in Rochester, New York, and employs approximately 13,000 people worldwide. Its products are available in more than 100 countries. The company manages its business through five business segments, which include three regional commercial segments: the Americas; Europe, Middle East and Africa (Europe), and Asia, and two centralized functions: Global Operations and Engineering, and Research and Development. The company's international operations include Brazil, Mexico, Australia, China, France, and Germany, among others. BAUSCH & LOMB: Moody's Reviews Ratings Over Warburg Merger Deal --------------------------------------------------------------- Moody's Investors Service stated that it will continue its review of Bausch & Lomb Incorporated's ratings for possible downgrade following the announcement that the company has entered into a definitive merger agreement with affiliates of Warburg Pincus. The proposed transaction is valued at approximately US$4.5 billion, including approximately US$830 million of debt. BOL's Board of Directors has unanimously approved the merger agreement. The transaction is subject to certain closing conditions, including the approval of BOL shareholders, regulatory approval and the satisfaction of other customary closing conditions. Additionally, there is no financing condition to consummate the transaction. Under the merger agreement, BOL may solicit proposals from third parties during the next 50 days. If BOL enters into another definitive agreement, BOL would be obligated to pay Warburg Pincus a $40 million break-up fee. Sidney Matti, Analyst, stated that, "The review for possible downgrade will focus primarily on the company's post-acquisition capital structure and the likelihood that BOL's post-acquisition credit metrics would fall below the 'Ba' rating category." These ratings remain on review for possible downgrade: -- Ba1 Corporate Family rating; -- Ba1 Probability of Default rating; -- Ba1 (LGD4/52%) rating on $133.2 million Senior Unsecured Notes due 2007; -- Ba1 (LGD4/52%) rating on $50 million Senior Unsecured Notes due 2008; -- Ba1 (LGD4/52%) rating on $160 million Senior Unsecured Notes due 2023; -- Ba1 (LGD4/52%) rating on $0.4 million Senior Unsecured Notes due 2026; -- Ba1 (LGD4/52%) rating on $66.4 million Senior Unsecured Notes due 2028; and -- Ba1 rating on a Medium Term Note Program. Headquartered in Rochester, New York, Bausch & Lomb, Inc. is a leading worldwide provider of eye care products, including contact lens, lens care, ophthalmic pharmaceuticals and surgical products. For the fiscal year ended December 31, 2006, the company reported revenues of approximately $2.2 billion. The company maintains operations in Brazil, Mexico, Australia, China, France, and Germany, among others. BAUSCH & LOMB: Fitch Holds Watch Neg. Despite Warburg Sale Pact --------------------------------------------------------------- Following the announcement that Bausch & Lomb (NYSE: BOL) has entered into a definitive agreement with affiliates of Warburg Pincus to be acquired for approximately US$4.5 billion, including approximately US$830 million of debt, Fitch maintains its Negative Rating Watch on BOL. The transaction would significantly increase leverage and likely result in a multiple-notch downgrade. As currently contemplated, the transaction would result in an Issuer Default Rating of no higher than 'BB-'. Fitch now has an IDR of 'BBB-' on BOL and first placed BOL on Negative Watch on April 12, 2006. The Negative Watch also reflects the fact that BOL has yet to file its first-quarter 2007 10Q. According to the agreement, BOL may shop for superior offers during the next 50 calendar days. Should BOL enter into a superior agreement, Fitch will evaluate its impact on BOL's credit rating at that time. In addition, the current agreement includes a US$40 million break-up fee. Fitch's ratings for BOL are as: -- Issuer Default Rating 'BBB-'; -- Bank credit facilities 'BBB-'; and -- Senior unsecured notes 'BBB-'. Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in France and Germany, among others. BAUSCH & LOMB: US$4.5 Bln Warburg Deal Cues S&P to Lower Rating --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Bausch & Lomb Inc. and placed them on CreditWatch with negative implications. The corporate credit rating was lowered to 'BB+' from 'BBB'. "These actions reflect the announcement that B&L has entered into a definitive merger agreement with affiliates of Warburg Pincus in a transaction valued at about US$4.5 billion, including about US$830 million of debt," explained Standard & Poor's credit analyst Cheryl Richer. "The transaction is subject to certain closing conditions, including the approval of B&L shareholders, regulatory approvals, and the satisfaction of other customary closing conditions." Even if the transaction is not consummated (B&L may solicit superior proposals from third parties during the next 50 calendar days under the merger agreement), management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating. Credit metrics were already marginally weak for the prior rating as a result of the ReNu with MositureLoc recall. Financial strengthening, anticipated as the company rebuilds its brand name and expands sales in unaffected lines of business, will be insufficient to offset the increase in debt. Pro forma for an additional US$830 million of debt at year-end 2006, debt to EBITDA would increase to 5.7x--a level more characteristic of a rating that is more than one notch lower than the current 'BB+' rating--from the actual 3.1x. Standard & Poor's will monitor the progress of this transaction to determine the extent to which the rating will decline. About Bausch & Lomb Bausch & Lomb (NYSE:BOL) -- http://www.bausch.com/-- is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Founded in 1853, the company is headquartered in Rochester, New York, and employs approximately 13,000 people worldwide. Its products are available in more than 100 countries. The company manages its business through five business segments, which include three regional commercial segments: the Americas; Europe, Middle East and Africa (Europe), and Asia, and two centralized functions: Global Operations and Engineering, and Research and Development. The company's international operations include Brazil, Mexico, Australia, China, France, and Germany, among others. CHEMTURA CORP: Moody's Cuts US$1.05 Billion Notes to Ba2 -------------------------------------------------------- Moody's Investors Service lowered Chemtura Corporation's corporate family rating to Ba2 from Ba1 and also lowered the company's outstanding debt ratings to Ba2. Moody's also revised the ratings outlook to stable from negative. The rating action reflects that Chemtura's operational performance has not resulted in credit metric improvement in line with Moody's prior expectations. The lowered Ba2 ratings continue to reflect Chemtura's high pro forma leverage, weak credit metrics and ongoing challenges at the non flame retardant Plastic Additives (NFRPA) segment. Moody's believes the challenges of integrating two organizations that had been individually challenged by their own unique restructuring programs, combined with essentially a complete changeover in senior management, are also factors in justifying the Ba2 rating. Chemtura's pro forma leverage as of Dec. 31, 2006, was 4.3X (Debt/EBITDA - adjusted for unusual one time items). Moody's adjusted debt includes $1.1 billion of funded debt, $294 million in unfunded pension obligations, $280 million of account receivable securitizations, and $227 million in capitalized operating leases. This ratio maps to a high "B" rating. Moody's had been expecting retained cash flow to be in excess of $300 million or more. Retained cash flow in 2006 (adjusted for one time items) was only $200 million and was about 11% of total debt, a metric that maps to the low end of the "Ba" category. While much progress has been made in raising prices to cover higher raw material costs in many of Chemtura's businesses, this strategy has been challenged in the NFRPA portion of Chemtura's business where margins have declined. NFRPA represents about 30% of revenues. As a result of aggressive pricing strategies profitable volumes were lost and management has instituted steps to restore volume and improve performance. The move to a stable outlook is supported by Moody's belief that there has been progress in managing process of integration and remaining legacy issues. Additionally, the prospect of somewhat stronger retained cash flow generation over the next several years is reflected in the move to a stable outlook. Moody's expects that retained cash flow to total debt will average close to 15% over the next two years, a metric that maps to the middle of the "Ba" rating category. Chemtura's improved capital structure, with no material debt maturities until July 2009, combined with adequate liquidity also support the Ba2 rating and the stable outlook. Ratings lowered: -- Corporate Family Rating: Ba2 from Ba1 -- Senior notes, $500 million due 2016: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, $150 million due 2026: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, $400 million due 2009: Ba2 from Ba1; LGD4 (53%) Moody's last rating action on Chemtura was in April 2006, when the Ba1 corporate family rating was affirmed and the company's senior notes due 2016 were rated (also Ba1). The negative rating outlook was assigned in September of 2005. Headquartered in Middlebury, Connecticut, Chemtura manufactures a variety of polymer and rubber additives, castable urethane pre-polymers, ethylene propylene diene monomer (EPDM), crop protection chemicals, brominated flame-retardants, recreational water treatment chemicals, and brominated/fluorinated specialty chemicals. In 2006, the company had revenues and adjusted EBITDA (as estimated by Moody's) of $3.7 billion and approximately $445 million, respectively. 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. EUROTUNNEL GROUP: Eyes EUR4 Billion Debt Reduction Under Plan ------------------------------------------------------------- Eurotunnel Group's (aka Groupe Eurotunnel S.A.) safeguard plan envisages that following the implementation of the reorganization, the financial indebtedness of Eurotunnel will be reduced to EUR4.164 billion (excluding the nominal amount of the NRS, which will be treated as quasi-equity), representing a debt reduction of 54% from current indebtedness, which amounted to EUR9.073 billion on Sept. 30, 2006. Eurotunnel SA and Groupe Eurotunnel SA wished to bring to the attention of the public an update and some additional information on the Senior Facilities described in paragraph 5.3.4, or the financing of Eurotunnel Group, of the registration document. The six loan tranches, which constitute the Senior Facilities, are denominated either in euros or GBP with different maturity dates and amortization start dates depending on the basis on which interest is calculated for each tranche, described as: Financial Conditions of the Senior Facilities For the Tranches Denominated in GBP: -- a tranche A1 loan amounting to GBP750 million, bearing interest at a fixed rate linked to the U.K. All Items Retail Price Index inflation index as published by the United Kingdom Office for National Statistics; -- a tranche B1 loan amounting to GBP400 million, bearing interest at a fixed rate; and -- a tranche C1 loan, amounting to GBP350 million, bearing interest at a floating rate, which will be entirely hedged by a fixed/floating interest rate swap. Eurotunnel Finance Ltd. has already purchased interest rate swaptions providing protection against an increase in interest rates. The maximum rate payable by Eurotunnel Finance Ltd. at the time of drawdown of the loan guaranteed by these swaptions is around 6.6% to 6.7% per annum after taking into account the credit margin. The equivalent fixed rate at the time of drawdown of the loan will depend upon the prevailing rates and the expected inflation at the time the hedge is finalized. For the Tranches Denominated in Euros: -- a tranche A2 loan amounting to EUR367 million, bearing interest at a fixed rate linked to the indice des prix a la consommation hors tabac inflation index as published by l'Institut National de la Statistique et des Etudes Economiques; -- a tranche B2 loan amounting to EUR645 million, bearing interest at a fixed rate; and -- a tranche C2 loan, amounting to EUR953 million, bearing interest at a floating rate, which will be entirely hedged by a fixed/floating interest rate swap. France Manche SA has already purchased interest rate swaptions providing protection against an increase in interest rates: the maximum rate payable by France Manche S.A. at the time of drawdown of the loan guaranteed by these swaptions is around 6.4% to 6.5% per annum after taking into account the credit margin. The equivalent fixed rate at the time of drawdown of the loan will depend upon the prevailing rates and the expected inflation at the time the hedge is finalized. Repayment of the Senior Facilities The funds borrowed under the Senior Facilities will be repayable in accordance with their respective amortization schedules, of which the main characteristics reflect the discussions with the rating agencies, and are currently as follows: For the Tranches Denominated in GBP: -- repayment of the A1 tranche will begin on June 20, 2018, to end on June 20, 2042. Repayments will fall six monthly on June 20 and December 20. The A1 tranche has a loan weighted average life of between 25 and 26 years; -- repayment of the B1 tranche will begin on June 20, 2046, to end on June 20, 2046. Repayments will fall six monthly on June 20 and December 20. The B1 tranche has a loan weighted average life of between 29 and 30 years; and -- repayment of the C1 tranche will begin on June 20, 2046, to end on June 20, 2050. Repayments will fall six monthly on June 20 and December 20. The C1 tranche has a loan weighted average life of between 41 and 42 years. The repayment profile of the aggregate principal payments due in respect of the three tranches denominated in GBP (before taking into account inflation on Tranche A1) is close to a constant annuity. For the Tranches Denominated in Euros: -- repayment of the A2 tranche will begin on June 20, 2018, to end on June 20, 2041. Repayments will fall six monthly on June 20 and December 20. The A2 tranche has a loan weighted average life of between 24 and 25 years; -- repayment of the B2 tranche will begin on June 20, 2013, to end on June 20, 2041. Repayments will fall six monthly on June 20 and December 20. The B2 tranche has a loan weighted average life of between 22 and 23 years; and -- repayment of the C2 tranche will begin on June 20, 2041, to end on June 20, 2050. Repayments will fall six monthly on June 20 and December 20. The C2 tranche has a loan weighted average life and of between 39 and 40 years. The repayment profile of the aggregate principal payments due in respect of the three tranches denominated in euros, before taking into account inflation on Tranche A2, is close to a constant annuity. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel SA (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained on Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. SMOBY-MAJORETTE: MGA Acquires Breuil's 51% Stake for EUR1 --------------------------------------------------------- MGA Entertainment Inc. has completed its acquisition of Smoby- Majorette after buying the Breuil family's 51% stake in the French toymaker for a nominal EUR1, The Financial Times reports citing Claire Gatinois of Le Monde. A source reveals that MGA Entertainment has provided Smoby with a capital injection of EUR29 million. Smoby is currently negotiating to repurchase EUR15 million of inventory from the holders of its EUR178 million term loan B, Chris Haffenden and Adelene Lee write for FT citing sources privy to the matter. According to the report, the Commercial Court of Lons-le-Saunier has approved the request of the lenders to seize the inventory, which was pledged by Smoby in exchange for deferring EUR7.4 million of debt amortization. However, the order has not taken effect as of yet. A source close to the company says that both parties are working on an amicable solution. The source added that MGA would finance the inventory purchase. A safeguard hearing is set next week during which a definitive payment proposal will be presented to the court and to lenders. The judge will then decide how much time is needed for a consensual deal, the source further disclosed. As previously noted by a number of sources, should the lenders fail to agree on the rescue plan the court could impose a ten- year rescheduling of the debt amortization if Smoby is able to demonstrate that it can continue to operate, FT relates. The TCR-Europe reported on April 5, 2007, that U.S. company MGA Entertainment, a manufacturer of Bratz dolls, and Cornerstone, one of China's biggest toy and game makers and distributors, have emerged as potential buyers of Smoby-Majorette. The two toy makers offered about EUR60 million each to acquire Smoby- Majorette, which has a market capitalization of EUR25.5 million. Smoby-Majorette's founding family has expressed its support for MGA Entertainment's bid after Cornerstone's offer fueled fears that jobs might be moved to China if the bid is successful. About Smoby Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Its toy collection includes over 2,000 products divided into groups for specific age ranges. Its products are marketed under such brand names as Smoby, Berchet, Ecoiffier, Majorette, Solido, Smoby Engineering and Mob. The Company's principal subsidiaries include Ecoiffier, which focuses on the design and production of toys, and Mob, which is a producer of plastic packaging. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. In France, the Company employs 1, 300 workers. Smoby requested for bankruptcy protection, which commenced on March 19, 2007, hoping to snag an investor who will inject fresh capital yet remain a minority, as the company grapples with a EUR330 million debt. The company reported a net loss of EUR15.87 million for the year ended March 31, 2006, compared with a net profit of EUR1.56 million in 2005. ============= G E R M A N Y ============= A. BEHRENS-MANNERMODE: Claims Registration Period Ends June 15 -------------------------------------------------------------- Creditors of A. Behrens-Mannermode GmbH have until June 15 to register their claims with court-appointed insolvency manager Joerg Trittermann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 11, 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 Braunschweig Hall E 01 Martinikirche 8 38100 Braunschweig 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 Braunschweig opened bankruptcy proceedings against A. Behrens-Mannermode GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Joerg Trittermann Lessingplatz 9 D 38100 Braunschweig Germany Tel: (0531) 1206875 Fax: (0531) 1206880 E-mail: insolvenz@trittermann.de The Debtor can be reached at: A. Behrens-Mannermode GmbH Attn: Andreas Behrens, Manager Lange Herzogstrasse 25 38300 Wolfenbuettel Germany A. GEISLER: Creditors' Meeting Slated for June 20 ------------------------------------------------- The court-appointed insolvency manager for A. Geisler Meisterbetrieb fuer Dachdeckerei und Bauklempnerei GmbH, Dr. Bjoern Gehde, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:40 a.m. on June 20. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 11:40 a.m. on Sept. 26 at the same venue. Creditors have until July 31 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Bjoern Gehde Goethestr. 85 10623 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against A. Geisler Meisterbetrieb fuer Dachdeckerei und Bauklempnerei GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A. Geisler Meisterbetrieb fuer Dachdeckerei und Bauklempnerei GmbH Bremer Strasse 61 10551 Berlin Germany AQUA-MEMBRANTECHNOLOGIE: Claims Registration Period Ends June 29 ---------------------------------------------------------------- Creditors of aqua-membrantechnologie noa GmbH have until June 29 to register their claims with court-appointed insolvency manager Jens Hamdorf. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Norderstedt Hall B Rathausallee 80 22846 Norderstedt 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 Norderstedt opened bankruptcy proceedings against aqua-membrantechnologie noa GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Jens Hamdorf Hallerstrasse 76 20146 Hamburg Germany The Debtor can be reached at: aqua-membrantechnologie noa GmbH Attn: Norman J. Andersen, Manager Beim Haferhof 10 25479 Ellerau Germany AUTOCENTER GEORGE: Claims Registration Period Ends June 18 ---------------------------------------------------------- Creditors of Autocenter George GmbH have until June 18 to register their claims with court-appointed insolvency manager Raimund Schraad. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on June 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Eschwege Meeting Hall 2 First Floor Friedr.-Wilh.-Strasse 39 37269 Eschwege Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 a.m. on Aug. 1, at the same venue. The District Court of Eschwege opened bankruptcy proceedings against Autocenter George GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Raimund Schraad Dudenstrasse 14 36251 Bad Hersfeld Germany Tel: 06621/507822 Fax: 06621/507844 The Debtor can be reached at: Autocenter George GmbH Attn: Robert George, Manager Niederhoner Strasse 40 37269 Eschwege Germany BENQ CORP: Inks Memorandum of Intent to Sell Brazilian Plant ------------------------------------------------------------ BenQ Corp. said in a statement that it has signed a memorandum of intent to sell its Brazilian plant that produces mobile phone handsets. Business News Americas relates that BenQ signed the memorandum to transfer control of the factory and research center in Manaus to entrepreneurs Enzo Monzani and Conrado Will, the owners of retail clothes chain Zoomp. According to BenQ's statement, the value of the deal has not been disclosed. A BenQ spokesperson told BNamericas that Denise Santos, president of BenQ's Manaus unit, said the workers will resume work and there would be no lay-offs. Rumors that BenQ might shut down the Manaus unit intensified in 2006 when a local trade union official stated that the firm had fired 310 workers at the plant, BNamericas reports. BenQ said in a statement that despite good handset sales in Brazil -- chiefly in the retail market -- the problems that BenQ has been experiencing worldwide affected the Brazilian unit. BenQ lost almost US$1 billion worldwide from the handset unit since the firm acquired the handset division of Germany's Siemens in 2005. Meanwhile, BenQ reported US$13 billion global revenues last year, BNamericas states. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. The company's global operations are in Latin America: Brazil, Mexico; Asia-Pacific: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Turkey, Thailand and Vietnam; Europe: Austria, Belgium. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after the company failed to secure a buyer by the Dec. 31, 2006 deadline. BRAUER SERVICE: Claims Registration Period Ends June 4 ------------------------------------------------------ Creditors of Brauer Service GmbH have until June 4 to register their claims with court-appointed insolvency manager Sylvia Rhein. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 4, 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 Darmstadt Hall 4.312 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Darmstadt opened bankruptcy proceedings against Brauer Service GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Sylvia Rhein Walther-Rathenau-Str. 24 64646 Heppenheim Germany Tel: 06252/6877-0 Fax: 06252/6877-11 The Debtor can be reached at: Brauer Service GmbH Attn: Sigrid Brauer, Manager Goethestrasse 11 64625 Bensheim Germany DAIMLERCHRYSLER: Chrysler Posts EUR1.49 Bln First Quarter Loss -------------------------------------------------------------- DaimlerChrysler AG has presented its interim report on the first quarter of 2007 for the first time in accordance with International Financial Reporting Standards. The Chrysler Group posted a loss of EUR1.49 billion in the first quarter of 2007, compared with EBIT of EUR641 million in the prior-year. The unit posted revenues of EUR10.2 billion in the first quarter of 2007, 18% lower than in 2006; measured in US dollars, revenues decreased by 11%. DaimlerChrysler increased its EBIT to EUR2 billion in the first quarter of this year compared with EUR1.2 billion in 2006. Earnings were reduced particularly by restructuring expenses related to the implementation of the Chrysler Group's Recovery and Transformation Plan amounting to EUR914 million. There were additional charges of EUR120 million from the financial support provided to troubled suppliers and EUR54 million for the implementation of the new management model. Income of EUR1.6 billion, however, was realized in connection with DaimlerChrysler's equity interest in EADS, partially offset by expenses of EUR114 million from the Power8 restructuring program at EADS. Improved operating results at the Mercedes Car Group and the Truck Group largely offset the decline in earnings at the Chrysler Group. Net profit in the first quarter of 2007 amounted to EUR2 billion compared with EUR781 million in 2006, while earnings per share amounted to EUR1.89 this year compared with EUR0.77 in 2006. Unit Sales Below Prior-Year Levels In the first quarter of 2007, DaimlerChrysler sold 1.1 million vehicles worldwide, dropping 5% from sales during the prior-year quarter. DaimlerChrysler's total first-quarter revenues decreased 6% from EUR37.4 billion to EUR35.4 billion; adjusted for exchange-rate effects and changes in the consolidated Group, revenues were at the same level as in 2006. At the end of the first quarter of 2007, DaimlerChrysler employed a workforce of 356,749 people worldwide compared with 368,853 at the end of the first quarter of 2006. Of this total, 165,779 were employed in Germany and 91,170 were employed in the U.S. The result for the first quarter of 2007 includes restructuring charges of EUR914 million incurred in connection with the Chrysler Group's Recovery and Transformation Plan. The result for the first quarter of 2006 included a gain of EUR390 million related to changes to the healthcare programs offered to active and retired employees. The decline in the first quarter of 2007 result also reflects a decrease in factory unit sales in the United States and an unfavorable product and market mix. However, as a result, the Chrysler Group further reduced its dealer inventories to approximately 500,500 vehicles at the end of the quarter. Divisions' Results The Mercedes Car Group achieved first-quarter EBIT of EUR792 million in the first quarter of 2007 compared with a loss of EUR735 million in 2006. The division's revenues increased by 1% to EUR12.1 billion. The Truck Group reported EBIT of EUR528 million in the first quarter compared with EUR422 million in 2006. Revenues of EUR7.3 billion were of the same magnitude as in the prior-year quarter. The Financial Services division reported stable business developments in the first quarter of this year. The division's EBIT decreased by EUR36 million compared with the prior-year quarter to EUR419 million. The Van, Bus, Other segment posted first quarter EBIT of EUR1.9 billion in the first quarter of 2007 compared with EUR366 million in 2006. Outlook As the year progresses, DaimlerChrysler expects growth in global automobile markets to be lower than in the prior year, in line with overall economic developments. In full-year 2007, demand for vehicles in North America and Western Europe - DaimlerChrysler's core markets - is likely to be slightly weaker than in 2006. In the emerging markets of Asia, Eastern Europe and Latin America, the company anticipates an increase in demand for passenger cars and commercial vehicles. In the commercial- vehicles business, DaimlerChrysler expects a sharp decrease in demand for trucks in North America and Japan; markets should remain stable in Western Europe, however. On the basis of the divisions' planning, DaimlerChrysler expects overall unit sales to increase slightly in 2007 from the 4.7 million vehicles sold in 2006. The DaimlerChrysler Group's total revenues in full-year 2007 are likely to be of the same magnitude as the EUR152.8 billion revenues in 2006. DaimlerChrysler expects to achieve EBIT of EUR7 billion for full-year 2007 compared with EUR5.5 billion in 2006. Significant special factors affecting earnings in 2007 are the gain of EUR1.6 billion realized on the transfer of interest in EADS and charges of EUR1.0 billion resulting from the implementation of the Recovery and Transformation Plan at the Chrysler Group and of EUR0.6 billion from the new management model. This earnings guidance relates to the current structure of the Group. The effects of the future concept for the Chrysler Group and the realignment of DaimlerChrysler AG as published on May 14, 2007, have not yet been taken into consideration. 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. DIECKMANN GMBH: Claims Registration Period Ends June 5 ------------------------------------------------------ Creditors of Dieckmann GmbH & Co. KG Baugeschaft und Schluesselfertigbau have until June 5 to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 101 B First Floor Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against Dieckmann GmbH & Co. KG Baugeschaft und Schluesselfertigbau on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Andreas Sontopski Gnoiener Platz 1 48493 Wettringen Germany Tel: 02557/9384-0 Fax: +492557938450 The Debtor can be reached at: Dieckmann GmbH & Co. KG Baugeschaft und Schluesselfertigbau Attn: Brigitte Dieckmann, Manager Dieselstrasse 39 48565 Steinfurt Germany ERNST PAUL: Hans Rudolf Wohrl Abandons Acquisition Plans -------------------------------------------------------- German entrepreneur Hans Rudolf Wohrl has unexpectedly dropped plans to acquire Ernst Paul Lehmann Patentwerk OHG, foiling attempts to rescue the company's Nuremberg factory, The Financial Times reports, citing Suddeutsche Zeitung as its source. Mr. Wohrl was the only bidder who could have maintained production at the site, which employs about 130 staff, the report says. The TCR-Europe, citing company owner Hermann Schontag, reported on April 18, 2007, that it took a while to find investors for the model railway company, valued at EUR3.7 million. About the Company Headquartered in Nuremberg, Germany, Ernst Paul Lehmann Patentwerk OHG -- http://www.lgb.de/english/-- created the world's first "G-scale" train, Lehmann Gross Bahn, in 1968, and continues to make the most popular garden railway model in Europe. Ernst Paul Lehmann Patentwerk filed for bankruptcy protection in the Nuremberg district court on Sept. 18, 2006. The court then ordered temporary bankruptcy administration, and Dr. Steffen Goede of the law firm Goede, Bergfeld, Waldherr & Hussmann was appointed as the temporary bankruptcy trustee. ESBL GMBH: Claims Registration Period Ends July 25 -------------------------------------------------- Creditors of ESBL GmbH have until July 25 to register their claims with court-appointed insolvency manager Claudia Jansen. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Sept. 5, 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 Frankfurt (Main) Hall 1 Building F Klingerstrasse 20 60313 Frankfurt (Main) 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 Frankfurt (Main) opened bankruptcy proceedings against ESBL GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Claudia Jansen Bockenheimer Landstrasse 20 D 60323 Frankfurt (Main) Germany Tel: 069/4272686-5270 Fax: 069/4272686-5555 The Debtor can be reached at: ESBL GmbH Attn: Heinrich Bergen, Manager Frankfurter Strasse 92 65760 Eschborn Germany F.W. PLANBAU: Claims Registration Period Ends June 8 ---------------------------------------------------- Creditors of F.W. Planbau GmbH have until June 8 to register their claims with court-appointed insolvency manager Severin Kiesl. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rosenheim Hall 114 Rosenheim 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 Rosenheim opened bankruptcy proceedings against F.W. Planbau GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Severin Kiesl Stollstrasse 5 83022 Rosenheim Germany Tel: 08031/38096-0 Fax: 08031/13892 The Debtor can be reached at: F.W. Planbau GmbH Falkensteinstr. 9 83098 Brannenburg Germany FAIR-BAU VERWALTUNGS: Claims Registration Ends June 4 ----------------------------------------------------- Creditors of Fair-Bau Verwaltungs GmbH have until June 4 to register their claims with court-appointed insolvency manager Dr. Leo Schoofs. Creditors and other interested parties are encouraged to attend the meeting at 11:45 a.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 of 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: Dr. Leo Schoofs Salierstr. 4 46395 Bocholt Germany Tel: 02871/2183-0 Fax: +4928712183410 The District Court of Muenster opened bankruptcy proceedings against Fair-Bau Verwaltungs GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fair-Bau Verwaltungs GmbH Attn: Rudolf Ostendorf and Hans-Joachim Diekmann, Managers Gewerbering 15 48734 Reken Germany FORUM WOHNUNGSBAUGESELLSCHAFT: Claims Registration Ends June 26 --------------------------------------------------------------- Creditors of FORUM Wohnungsbaugesellschaft mbH have until June 26 to register their claims with court-appointed insolvency manager Holger-Rene Bruckhoff. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on July 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 Cologne Meeting Hall 1240 12th 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: Holger-Rene Bruckhoff Theodor-Heuss-Ring 19-21 50668 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against FORUM Wohnungsbaugesellschaft mbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FORUM Wohnungsbaugesellschaft mbH Attn: Ernst Otto Mones, Manager Judenpfad 19 a 50996 Cologne Germany FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service affirmed all ratings of Fresenius AG, and changed the outlook to positive from stable. Concurrently, Moody's has also affirmed the ratings of Fresenius's subsidiary, Fresenius Medical Care & Co KGaA, and changed the outlook to positive from stable. According to Moody's, the rating affirmations for Fresenius and FME reflect the successful integration of the Helios acquisition by Fresenius AG and the acquisition of Renal Care Group by FME. "The positive outlooks for FME and Fresenius reflect the constant improvements in the operating performance of the two companies driven by organic growth supported by the favorable demographic fundamentals for healthcare services and medical equipment and the progress in de-leveraging of both entities capital structures. "While both ratings carry positive outlooks we expect a faster rating migration for Fresenius than for FME, given the broader diversification of cash flow sources and a more pronounced improvement in credit metrics expected for the next twelve months than for FME," says Christian Hendker, Moody's lead analyst for Fresenius and FME. The affirmation of Fresenius's Ba2 Corporate Family Rating (Ba2 PDR) reflects: (1) the group's sizeable scale as a global provider of healthcare services and medical products and the recurring nature of the revenue base; (2) its balanced level of geographical diversification; (3) its segmental diversification in the healthcare market supported by strong market positions; and (4) good financial flexibility. However, the rating is constrained by: (1) still relatively high financial leverage following a number of sizeable acquisitions in recent years; (2) ongoing acquisition risk and the expectation for acquisition-related cash flow constraints over the medium term; (3) shareholder orientation; and (4) exposure to regulatory changes and pricing pressure from governments and healthcare organizations worldwide. The positive outlook for Fresenius AG reflects the benefits of an improved segmental diversification due to increasing performance contributions of ProServe and Kabi which are somewhat reducing the historical dependency on the operating performance of FME. Additionally, the group's credit metrics are approaching historical levels, as reflected by Debt to EBITDA of 3.7x in the fiscal year ending Dec. 31, 2006. An upgrade in Fresenius's ratings could be triggered by a clear trend of improving CFO to Debt towards the high teens and reducing Debt to EBITDA below 3.5x. The affirmation of the Ba2 Corporate Family Rating for FME (Ba2 Probability of Default or PDR) is supported by: (1) FME's absolute scale and a strong market position as a leading global provider of dialysis products and private dialysis services; (2) continued favorable industry growth trends as well as the recurring nature of FME's revenues; (3) high profitability levels; and (4) good financial flexibility. FME's rating is constrained by: (1) its relatively high adjusted financial leverage; (2) the potential risks from the company's pure-play focus on the dialysis market, albeit mitigated by its position as a provider of both products and services; (3) the company's exposure to regulatory changes, government investigations and pricing pressure from governments and healthcare organisations worldwide; and (4) regional concentration on the North American market. The positive outlook for FME incorporates Moody's view of the stability of the dialysis market and is underpinned by favourable demographic demand drivers the rating remains constrained by relatively high financial leverage (Debt to EBITDA of 3.9x in the fiscal year ending Dec. 31, 2006). Given a relatively more concentrated business profile than Fresenius, FME's metrics would need to show a track record of Debt to EBITDA below 3.5x and CFO to Debt in the high teens on a sustained basis to accommodate a rating upgrade. Moody's notes that the rating levels for Fresenius' Ba2 Corporate Family Rating and the Ba2 Corporate Family Rating of its key subsidiary FME are not directly linked. However, Fresenius' consolidated operating performance and financial leverage are highly correlated to FME, given the full consolidation of FME's financial results (Fresenius AG holds a 36% economic interest in FME, but as result of FME's legal status as a KGaA Fresenius has 100% management control of this entity). FME remains fully controlled and hence fully consolidated by Fresenius AG as long as Fresenius owns more than 25% of FME. Moody's notes that, although a change in the consolidation method would affect the group's consolidated operating performance and cash generation, it would also result in a reduction in absolute debt levels. The previous rating action for these issuers was on 31 March 2006, when Moody's affirmed the ratings for Fresenius and FME following US anti-trust approval and the expected completion of the acquisition of Renal Care Group, Inc. Outlook Actions: * FMC Trust Finance S.a.r.l. -- Outlook, Changed To Positive From Stable * Fresenius AG -- Outlook, Changed To Positive From Stable * Fresenius Finance BV -- Outlook, Changed To Positive From Stable * Fresenius Medical Care AG & KGaA -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust II -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust III -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust IV -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust V -- Outlook, Changed To Positive From Stable Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG is the world's leading provider of dialysis products and services. For the fiscal year ended Dec. 31, 2006, Fresenius Medical Care AG generated net revenues of US$8.5 billion. Fresenius AG is a global health care company with products and services for dialysis (through Fresenius Medical Care), international healthcare services and facilities management (Fresenius ProServe) and nutrition and infusion therapies (Fresenius Kabi). For the fiscal year ending on Dec. 31, 2006, Fresenius AG generated consolidated sales of EUR10.8 billion. The company also operates facilities in Australia, Brazil, Canada, China, France, Korea, Mexico, Portugal and Sweden, among others. HBG - SCHALTANLAGENBAU: Claims Registration Ends June 7 ------------------------------------------------------- Creditors of HBG - Schaltanlagenbau GmbH have until June 7 to register their claims with court-appointed insolvency manager Rolf Weidmann. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 185 First Floor Zweigertstr. 52 45130 Essen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Weidmann Alfredstr. 279 45133 Essen Germany The District Court of Essen opened bankruptcy proceedings against HBG - Schaltanlagenbau GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HBG - Schaltanlagenbau GmbH Rheinelbestr. 32 45886 Gelsenkirchen Germany Attn: Rolf Ganser, Manager Jahnstr. 19 a 45701 Herten Germany KARL HOFMANN: Creditors Must Register Claims by June 5 ------------------------------------------------------ Creditors of Karl Hofmann Verwaltungs-GmbH have until June 5 to register their claims with court-appointed insolvency manager Joachim Exner. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 6, 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 Ansbach Meeting Room 3 Promenade 8 91522 Ansbach 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: Joachim Exner Stahlstr. 17 90411 Nuremberg Germany Tel: 0911-951285-0 Fax: 0911-95128510 The District Court of Ansbach opened bankruptcy proceedings against Karl Hofmann Verwaltungs-GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Karl Hofmann Verwaltungs-GmbH Dr.-Martin-Luther-Str. 23 91550 Dinkelsbuehl Germany KLICK-BILDERBOX.DE GMBH: Creditors Must File Claims by June 25 -------------------------------------------------------------- Creditors of klick-bilderbox.de gmbh have until June 25 to register their claims with court-appointed insolvency manager Thomas Kaiser. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on July 9, 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 Freiburg Hall I Holzmarkt 2 79098 Freiburg 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: Thomas Kaiser LG-Fach 37 Wilhelmstr. 1b 79098 Freiburg Germany Tel: 0761/703940 Fax: 0761/7039410 The District Court of Freiburg opened bankruptcy proceedings against klick-bilderbox.de gmbh on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: klick-bilderbox.de gmbh Attn: Marianne Moser and Markus Ruths, Managers Universitatsstr. 10 79098 Freiburg Germany KOBES POLUBIEC: Creditors Must Register Claims by June 14 --------------------------------------------------------- Creditors of Kobes Polubiec GmbH have until June 14 to register their claims with court-appointed insolvency manager Andreas Amelung. Creditors and other interested parties are encouraged to attend the meeting at 9:58 a.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 Cologne Meeting Hall 142 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: Andreas Amelung Im Mediapark 6 B 50670 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Kobes Polubiec GmbH on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kobes Polubiec GmbH Im Bischofsacker 2 51065 Cologne Germany KORNFELD MEDIA: Creditors Must Register Claims by June 11 --------------------------------------------------------- Creditors of Kornfeld Media GmbH have until June 11 to register their claims with court-appointed insolvency manager Gerd Mensendiek. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 11, 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 Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold 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: Gerd Mensendiek Detmolder Str. 43 33604 Bielefeld Germany The District Court of Detmold opened bankruptcy proceedings against Kornfeld Media GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kornfeld Media GmbH Industriestr. 4 33813 Oerlinghausen Germany LEIPZIG-WEST: Ex-Shareholder Faces Fraud Charges in German Court ---------------------------------------------------------------- Jurgen Schlogel, formerly Leipzig-West Liegenschaften AG's main shareholder, appeared in court beginning May 10, 2007, to deal with allegations of fraud and attempts to delay insolvency, The Financial Times relates, citing Handelsblatt as its source. According to the report, Mr. Schlogel and Leipzig-West Manager Pierre Klusmeyer allegedly defrauded around 5,000 investors, causing damages worth around EUR27 million. Altogether, the insolvency administrator and consumer protection bodies estimate that almost 38,000 investors may have lost a total of almost EUR300 million to the defendants. Meanwhile, a lawyer has revealed that his firm is representing almost 2,000 investors claiming damages of more than EUR36 million. The company carried out bond issues subscribed largely by small savers, the report says. The transactions were designed to finance property business, but a large part of the sum is said to have flowed into the funds of Mr. Schlogel and his associated businesses. These are said to have included investment company DM-Beteiligungen, which has also become insolvent. Leipzig-West Liegenschaften AG is an insolvent property company based in Sachsen, Germany. MYLAN LABORATORIES: Buying Merck's Generics Biz for EUR4.9 Bln -------------------------------------------------------------- Mylan Laboratories Inc. and Merck KGaA have signed a definitive agreement under which Mylan will acquire Merck's generics business for EUR4.9 billion (US$6.7 billion) in an all-cash transaction. The combination of Mylan and Merck Generics will create a vertically and horizontally integrated generics and specialty pharmaceuticals leader with a diversified revenue base and a global footprint. On a pro forma basis, for calendar 2006, the combined company would have had revenues of approximately US$4.2 billion, EBITDA of approximately US$1 billion and approximately 10,000 employees, immediately making it among the top tier of global generic companies, with a significant presence in all of the top five global generics markets. In addition to retaining Hank Klakurka, currently president and chief executive officer of Merck Generics, Mylan has executed long-term employment agreements with members of Merck Generics' senior management team, ensuring that senior leadership remains intact. Mylan views the existing management and employees of Merck Generics as key to the success of the combined company. "Mylan's acquisition of Merck Generics would substantially complete the execution on one of its long-term visions: to create a world class global quality generics leader," Mylan Vice Chairman and CEO Robert J. Coury commented. "The fit between our two companies is truly outstanding. Mylan is already a leader in the U.S., the world's largest market, and through Matrix Laboratories controls one of the broadest API platforms in the world. Merck Generics provides us with leading positions in many of the world's other key regions. Together, we will form a powerful, diverse, robust and vertically integrated generics platform. "Cash EPS represents EPS adjusted for amortization expense related to intangible assets. "The combination with Merck Generics will significantly extend our range of therapeutic categories and dosage forms, and bring us a number of new, differentiated products and successful franchises," Mr. Coury added. Merck Generics is a subsidiary of Merck KGaA, a more than 300- year old global chemical and pharmaceutical conglomerate. Merck Generics has sales in more than 90 countries and is the world's number three ranked generics business by 2006 calendar year revenues. It has more than 400 high quality products and 70% of its revenues are generated from countries where it is a top three player. Merck Generics' U.S. specialty pharmaceuticals business, Dey, is focused on respiratory and allergy products and had US$650 million in revenues in 2006. Merck Generics reported sales of EUR1.8 billion (US$2.45 billion) and EBITDA of EUR335 million (US$450 million) in 2006. The business employs approximately 5,000 people worldwide. "My management team and I are extremely excited to be joining the Mylan team," President and CEO of Merck Generics Hank Klakurka said. "We believe Mylan is the best possible acquirer for our company. The two businesses are an excellent fit in terms of geography and product mix, and together we can offer extremely attractive product baskets across our combined territories. Mylan has established itself as a leader in the U.S. in terms of quality, manufacturing excellence and customer service, and has demonstrated a strong commitment to its employees and the communities in which it operates. My team and I look forward to working with Mylan to build an undisputed world leader in quality generics." Strategic Rationale The acquisition offers a unique, compelling opportunity to create a global generics leader with critical mass in most of the important generics markets. The transaction positions Mylan to leverage substantial growth opportunities and maximize operating efficiencies driven by global scale. Leadership and scale in key global regions: The transaction creates critical mass by combining Mylan's leading position in the U.S. with Merck Generics' broad geographic mix, including leading positions in Australia, France, Japan, Portugal, Spain and the U.K. This global footprint creates substantial growth opportunities, and reduces the risks associated with over-reliance on any one region. Broad and diversified product portfolio: The new company will be well diversified across most therapeutic areas with approximately 560 products. Differentiated dosage form expertise: The combined company will have manufacturing capabilities in several specialized dosage forms including solid orals, patches, controlled-release and high potency formulations, antibiotics, sterile liquids, inhalants and creams. Many of these dosage forms benefit from barriers to competition and longer product growth cycles. Additionally, Merck Generics has a highly successful product sourcing and in-licensing strategy that has allowed the company to develop critical mass in key differentiated dosages in attractive markets. Vertical integration and API supply: Together, Mylan and Merck Generics will benefit from significant savings driven by Matrix's low cost, high quality API capacity and the benefits of manufacturing high product volumes for multiple markets around the world. In 2007, Mylan completed its acquisition of a 71.5% stake in India-based Matrix, the second largest API manufacturer globally, with more than 165 APIs in the marketplace or under development. Transaction Details Under terms of the transaction, which have been unanimously approved by Mylan's Board of Directors, Mylan will acquire 100% of the shares of the various businesses comprising Merck Generics for a cash consideration of EUR4.9 billion (US$6.7 billion). Mylan has secured fully committed debt financing from Merrill Lynch, Citigroup and Goldman Sachs. The transaction is anticipated to be dilutive to full-year cash EPS in year one, breakeven in year two, and significantly accretive thereafter based on management's internal projections. The company is committed to reducing its leverage in the near term through the issuance of US$1.5 billion to US$2 billion of equity and equity-linked securities. The combined company will generate substantial free cash flow that will further enable it to rapidly reduce acquisition-related debt. Reflecting its more leveraged capital structure and focus on growth, Mylan is suspending the dividend on its common stock. Mylan expects to achieve synergies of approximately US$250 million by the end of year three. The majority of these synergies will result from vertical integration of Merck's API supply by leveraging the Matrix platform, aligning capabilities in research and development, and driving further efficiencies in increased manufacturing volumes of key products across the globe. Mylan does not anticipate significant reductions in headcount at Mylan, Matrix or Merck Generics in order to achieve these synergies. The combined company will have a dramatically accelerated growth profile with long-term compounded net income growth expected to exceed 30% per annum and long-term revenue growth in excess of 10%. This growth will be driven by new opportunities created by the formation of a truly global platform, through promising growth at Merck Generics, and by expected deleveraging of the balance sheet. The transaction remains subject to regulatory review in relevant jurisdictions and certain other customary closing conditions, and is expected to close in the second half of 2007. "We have been very impressed by the successful business built by the management team and employees at Merck Generics and by their dedication to excellence across all areas of their operations. We look forward to working together to create greater opportunities for all employees of Mylan and Merck Generics, as well as to uniting two cultures built on excellence in regulatory, R&D, manufacturing and customer service in one of the world's largest global generic pharmaceutical companies," Mr. Coury concluded. Merrill Lynch acted as exclusive financial advisor and provided a fairness opinion to Mylan in this transaction. The external legal counsel for Mylan was Cravath, Swaine & Moore LLP. About Merck Generics Merck Generics offers affordable standard therapies in nearly all major therapeutic areas through high-quality drugs containing active ingredients that are no longer patent protected. The range of products includes a wide assortment of more than 400 different substances plus special dosage forms and delivery systems with high patient benefit. Merck Generics is a subsidiary of Merck KGaA, a more than 300- year old global chemical and pharmaceutical conglomerate. About Mylan Laboratories Mylan Laboratories Inc. -- http://www.mylan.com/-- (NYSE:MYL) manufactures prescription medicines specializing in developing, manufacturing and marketing generic pharmaceuticals. Mylan manufactures and markets 160 generic products in nearly 400 product strengths, covering 46 therapeutic categories. Mylan is headquartered just outside of Pittsburgh and operates through its three subsidiaries: Mylan Pharmaceuticals (Morgantown, W.Va.) is primarily focused on solid oral dose generic pharmaceutical products. Mylan Technologies (St. Albans, Vt.) is the market leader in generic transdermal drug delivery technology and is the largest producer of generic transdermal patches for the U.S. market. UDL Laboratories (Rockford, Ill.) is the number one supplier of unit dose pharmaceuticals to hospitals and other institutions across the United States. Mylan also owns a 71.5% stake in Matrix Laboratories Limited of India and has a production facility in Puerto Rico. * * * As reported in the TCR-Europe on May 16, 2007, Moody's Investors Service placed the ratings of Mylan Laboratories Inc. under review for possible downgrade. Ratings placed under review for possible downgrade: * Mylan Laboratories Inc. -- Ba1 Corporate Family Rating -- Ba1 Probability of Default Rating -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of US$700 million due 2011 -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of US$300 million due 2011 -- Ba1 (LGD4, 51%) sr. unsecured term loan of US$450 million due 2012 -- Ba1 (LGD4, 51%) sr. unsecured notes of US$150 million due 2010 -- Ba1 (LGD4, 51%) sr. unsecured notes of US$350 million due 2015 At the same time, Standard & Poor's Ratings Services said it lowered its corporate credit and senior unsecured debt ratings on Mylan Laboratories to 'BB+' from 'BBB-' and placed all the ratings on CreditWatch with negative implications. The actions come on the heels of the company's announcement that it is acquiring Merck KGaA's generic business for EUR4.9 billion (US$6.7 billion) in an all-cash transaction. PERI-WERK: High Profitability Cues Moody's to Lift Rating to Ba1 ---------------------------------------------------------------- Moody's Investors Service upgraded both the corporate family rating and the senior unsecured debt ratings of Peri-Werk Artur Schwoerer GmbH & Co. KG to Ba1 from Ba2. The outlook has been changed to stable. "The upgrade reflects the company's ability to manage its double-digit sales growth while maintaining a high level of profitability and cash flow generation," said Matthias Hellstern, Moody's lead analyst for Peri. At the time of the last rating action in January 2006 when Moody's had changed the outlook on the company's Ba2 ratings to positive from stable, key criteria that Moody's set for an upgrade to Ba1 was that Peri could cope with an ongoing strong sales growth in 2006 (which at 21% was even stronger than expected in FY 2006) without compromising its profitability. The concern had been that profitability could have come under pressure from the need to add further production and rental capacities. However, the upgrade to Ba1 reflects the strength of the company's business model allowing it to cope with such a significant growth while at the same time maintaining high EBIT margins. The rating also reflects the company's well-diversified geographical operations covering more than 55 countries and its leading position in a strongly growing, albeit fragmented part of the construction market, which should provide some resilience to regional demand swings. Moody's notes that the company's strong business model -- supported by clear management continuity within the family - should allow Peri to continue to benefit from the current strong global demand environment, resulting in double-digit growth rates, profit margins above 15% and reduction in leverage as a result of improving free cash flows. However, the stable outlook reflects Moody's caution that for an upgrade into investment grade Peri would need to demonstrate some resilience to cyclical demand swings, as the current strong performance and significantly expanded business profile of Peri has not yet been tested in a less benign market environment. Moody's believes that even in the case of another strong performance in 2007, such a track record would need to be established over some time. Ratings affected by this upgrade are: * Peri-Werk Artur Schwoerer GmbH & Co. KG -- Long-term corporate family rating: Ba1, upgrade from Ba2; -- the PD rating has also been upgraded to Ba1, with a group LGD-assessment of 4 with a LGD rate of 50% * Peri GmbH -- EUR250 million of Senior Fixed Rate Notes due in 2011: Ba1, upgrade from Ba2; -- LGD-assessment of 4 remains unchanged, with a LGD-rate of 53% The last rating action on Peri was on January 16, 2006, when the outlook was changed from stable to positive. Headquartered in Weissborn, Germany, Peri is one of the world's leading developers, manufacturers and suppliers of formwork systems for cast-in-place concrete and providers of related engineering and technical services. As a family-owned business, Peri employs over 4,000 staff and engages in the direct sale and rental of formwork and scaffolding systems to the construction industry and also offers supporting services which complement its core businesses including clean-up, repair and logistics. With more than 70 sales and rental parks worldwide, Peri is considered to operate the largest rental stock of formwork systems, enabling it to offer just in time delivery to more than 25,000 customers. Revenues generated in 2006 accounted for EUR922 million, an increase of 21% compared to 2005. The company has operations in Australia, Canada, India, Japan, Denmark, Italy, Mexico and the United States. SCHAE VAN: Claims Registration Period Ends June 15 -------------------------------------------------- Creditors of Schae Van Baumschinen Metallbau, Reparatur und Transportservice GmbH have until June 15 to register their claims with court-appointed insolvency manager Christian Graf Brockdorff. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.m. on July 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stendal Hall 411 Albrecht der Bar Scharnhorststrasse 40 39576 Stendal 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 Graf Brockdorff Breite Strasse 9 a D 14467 Potsdam Germany Tel: 0331/298000 Fax: 0331/2980050 The District Court of Stendal opened bankruptcy proceedings against Schae Van Baumschinen Metallbau, Reparatur und Transportservice GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schae Van Baumschinen Metallbau, Reparatur und Transportservice GmbH Attn: Hartmut Valentin, Manager Niedergoerner Damm 9 39596 Arneburg Germany SIEGEL + GLASMEYER: Claims Registration Period Ends June 12 ----------------------------------------------------------- Creditors of Siegel + Glasmeyer GmbH have until June 12 to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 112 B First Floor Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Sontopski Gnoiener Platz 1 48493 Wettringen Germany Tel: 02557/9384-0 Fax: +492557938450 The District Court of Muenster opened bankruptcy proceedings against Siegel + Glasmeyer GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Siegel + Glasmeyer GmbH Gutenbergstrasse 11 49477 Ibbenbueren Germany Attn: Helmut Siegel, Manager Suedring 20 49477 Ibbenbueren Germany SPASS IN DORMAGEN: Claims Registration Period Ends June 8 --------------------------------------------------------- Creditors of Spass in Dormagen Gastronomie GmbH have until June 8 to register their claims with court-appointed insolvency manager Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on July 9, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Duesseldorf opened bankruptcy proceedings against Spass in Dormagen Gastronomie GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Joerg Nerlich Louise-Dumont-Str. 25 40211 Duesseldorf Germany The Debtor can be reached at: Spass in Dormagen Gastronomie GmbH Attn: Stefan Luedtke, Manager Koelner Str. 80 41539 Dormagen Germany UNIQUE-TRANS VERWALTUNGS: Claims Registration Ends June 15 ---------------------------------------------------------- Creditors of Unique-Trans Verwaltungs-GmbH have until June 15 to register their claims with court-appointed insolvency manager Dr. Hubert Ampferl. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 11, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Room 105 Augustenstr. 5 Regensburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hubert Ampferl Kumpfmuehler Str. 30 93051 Regensburg Germany Tel: 0941/2807370 Fax: 0941/2807379 The District Court of Regensburg opened bankruptcy proceedings against Unique-Trans Verwaltungs-GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Unique-Trans Verwaltungs-GmbH Henleinstr. 6 93082 Barbing Germany WIMATHERM KLIMATECHNIK: Claims Registration Period Ends July 4 -------------------------------------------------------------- Creditors of WIMATHERM Klimatechnik und Maschinenbau GmbH have until July 4 to register their claims with court-appointed insolvency manager Diplom-Volkswirt Helge Wachsmuth. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 1, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Diplom-Volkswirt Helge Wachsmuth Alexanderstr. 2 30159 Hannover Germany Tel: 0511 325095 Fax: 0511 329934 The District Court of Hannover opened bankruptcy proceedings against WIMATHERM Klimatechnik und Maschinenbau GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WIMATHERM Klimatechnik und Maschinenbau GmbH Attn: Hans-Guenter Lipski, Manager Albert-Einstein-Str. 1 31515 Wunstorf Germany ============= I R E L A N D ============= BENCHMARK ELECTRONICS: Pemstar Buy Cues S&P to Remove Watch ----------------------------------------------------------- Standard & Poor's Ratings Services removed its ratings on Angleton, Texas-based Benchmark Electronics Inc. from CreditWatch, where they were placed with positive implications on Nov. 1, 2006. The 'BB-' corporate credit rating is affirmed; the outlook is stable. "The rating actions follow the company's stock-based acquisition of Pemstar, Inc. and a review of 2006 results," said Standard & Poor credit analyst Lucy Patricola. While Pemstar adds complementary customers and programs to Benchmark's portfolio, with a minimum of redundant facilities, Benchmark recently experienced share erosion at its key customer, Sun Microsystems; end-market softness in some of its largest sectors; and program ramp delays. The ratings reflect Benchmark's mid-tier industry position, significant customer concentration, and challenges posed by volatile computing and communications end-market demand. Consistent operating performance and a strong financial profile for the rating partly offset these concerns. Benchmark had no funded debt outstanding as of March 2007, and lease-related adjustments are nominal at US$25 million. Benchmark provides electronic manufacturing services, primarily in the high-end computing and communications equipment markets, although the company has made strides at diversifying its revenue base organically and through its recent acquisition of Pemstar. Still, following the acquisition, computing and telecommunications remain about 70% of total sales. Medical devices, industrial controls, and instrumentation accounted for the balance. At US$2.9 billion in 2006 annual revenue, the company is the smallest in the rated EMS sector. About Benchmark Electronics Based in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE) -- http://www.bench.com/-- manufactures electronics and provides services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunications equipment. The company's global operations include facilities in The Netherlands, Romania, Ireland, Brazil, Mexico, Thailand, Singapore, and China. SHAMROCK CAPITAL: Moody's Puts Low-B Ratings to Two Note Classes ---------------------------------------------------------------- Moody's Investors Service has assigned definitive credit ratings to the eight classes of notes issued under Series 2007-1 by Shamrock Capital P.L.C., a special purpose company incorporated in Ireland, in relation with the ORB Emerging Market CDO transaction. The ratings are: -- Aaa to the Series 2007-01 EUR38,600,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- Aaa to the Series 2007-02 CZK600,000,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- Aa2 to the Series 2007-03 EUR5,000,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- Aa2 to the Series 2007-04 CZK112,000,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- A1 to the Series 2007-09 SKK253,125,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- Baa2 to the Series 2007-05 EUR19,500,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- Ba3 to the Series 2007-06 EUR13,500,000 Floating Rate Portfolio Credit Linked Notes due 2012 -- B3 to the Series 2007-07 EUR7,500,000 Floating Rate Portfolio Credit Linked Notes due 2012 The ratings assigned to the Notes will address the expected loss posed to Noteholders by the legal maturity of the Notes. The Notes are synthetic collateralized debt obligations exposed to a managed underlying portfolio of corporate emerging market reference entities. The transaction is arranged by Citigroup Global Markets Limited and managed by BI Asset Management Fondsm'glerselskab A/S (Bankinvest), a Danish Asset Manager. Upon the occurrence of a credit event, a fixed recovery rate of 40% will be used as final price. The ratings are primarily based upon: (i) an assessment of the credit quality of the underlying reference entities; (ii) an assessment of the asset correlation of the underlying reference entities; (iii) the level of protection against losses provided through the thresholds; and (iv) the legal and structural integrity of this issue. In addition, Moody's has assigned a provisional rating to the Senior Swap in relation to the ORB Emerging Market CDO Transaction: -- (P)Aaa to the Series 2007-01 EUR 210,000,000 Senior Swap expiring 2012 The Moody's rating assigned to this super senior swap measures the risk on an expected loss basis that the credit protection provider will be required to make payments in respect of credit events under the terms of the transaction. The rating also addresses any premium due but not paid by the protection buyer, up until an early termination date, if any. The rating does not address potential losses resulting from an early termination of the transaction, nor any market risk associated with the transaction. ========= I T A L Y ========= DANA CORP: Wants to Buy Manufacturing Plants from Non-Debtor Arm ---------------------------------------------------------------- Dana Corp. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to purchase manufacturing plants located in Stockton, California, and Danville, Kentucky, from their wholly owned non-debtor subsidiary, Dana Commercial Credit Corporation. Pursuant to separate purchase agreements, the Debtors will pay US$1,327,210 for the Stockton Plant and US$6,108,365 for the Danville Plant. Moreover, the Purchase Agreements provides that DCCC will pay one half of the expenses associated with title insurance for the Plants and one half of an escrow agent's fees. The Debtors will pay the other half of the title insurance expenses and the escrow agent fees. DCCC will pay all transfer taxes associated with the sale of the Plants and the Debtors will pay all the recording fees associated with the transfer of the Plant's ownership. In connection with the purchase of the Plants, the real and property leases associated with the Plants will be terminated and no further claims will be due and owing under the Leases. DCCC is in the process of winding down its business, Richard H. Engman, Esq., at Jones Day, in New York, tells the Court. In connection with the winddown, the Debtors and DCCC agreed that the Debtors would pay all rental payments due to DCCC under the Leases associated with the Plants. The Debtors currently pay DCCC US$45,013 per month in rent for the Danville Plant and US$103,550 a month in rent for the Stockton Plant, Mr. Engman says. Mr. Engman asserts that pursuant to accounting rules, the Debtors will show increased income once they purchase the Plants resulting from the elimination of rental expense. Purchasing the Plants now, Mr. Engman notes, will accelerate the Debtors' realization of the accounting benefits and make the Plants available as collateral for any exit financing in the bankruptcy cases. The Debtors believe that the purchase price for the Plants is in the range of likely market values for the Plants. The Debtors also seek the Court's permission to waive any stay of the effectiveness of the order approving the repurchase request. Mr. Engman says the Debtors would like to commence closing the transactions as soon as possible to obtain the accounting benefits contemplated under the transaction. The Debtors would also like to avoid having to make lease payments on June 1, 2007, which would ordinarily come due during the automatic stay of effectiveness of the sought order, Mr. Engman adds. 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 in the Asia- Pacific, Argentina in the Latin-American regions and Italy in Europe. 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 Jan. 3, 2007. They have until Mar. 5, 2007, to solicit acceptances to that plan. (Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Dominion Bond Rating Service downgraded Dana Corporation's Bank Debt rating to D from CCC, and cut the Senior Unsecured Notes rating to D from CC. DBRS's rating action follows the company's decision to file for Chapter 11 bankruptcy protection. The filing covers Dana and 40 U.S. subsidiaries of the company, and excludes Dana's European, South American, Asia-Pacific, Canadian, and Mexican subsidiaries. Following Dana Corporation's announcement that it has filed for Chapter 11 bankruptcy court protection and defaulted on its debt agreements, Fitch downgraded Dana's issuer default rating to 'D' from 'C'. Fitch also affirms and removes from Rating Watch Negative the 'CC' rating and 'RR4' recovery rating on Dana's unsecured notes. These ratings will be withdrawn in 30 days. The 'B-' rating on the pre-petition senior secured facility and the recovery rating of 'RR1' are being withdrawn, as the facility is expected to achieve full recovery through the establishment of US$1.45 billion in debtor-in-possession facilities. Moody's Investors Service assigned B3 ratings to the US$1.45 billion debtor-in-possession financing of Dana Corporation as a Debtor-in-Possession. The DIP financing consists of a US$750 million super priority senior secured asset based revolving credit and a US$700 million super priority senior secured term loan B. DANA CORP: To Terminate Non-Union Pension Benefits on July 1 ------------------------------------------------------------ Dana Corp. and its debtor-affiliates and the Official Committee of Non-Union Retirees wish to avoid the expense and uncertainty associated with litigating their disputes under Section 1113/1114 of the Bankruptcy Code. Accordingly, the Debtors and the Retiree Committee agree to deem resolved the Section 1113/1114 disputes, the Debtors' request to terminate non-union pension benefits and the objections as to all former employees who: -- while working for the Debtors were not represented or are not currently represented by a labor organization; and -- were receiving or eligible to receive Non-Pension Retiree Benefits from the Debtors as of March 31, 2007. Any non-union employee that retired after March 31, 2007, is not subject to the terms of the Stipulation but is subject to the terms of the order authorizing the termination of the non-union pension benefits entered on March 30, 2007. Judge Lifland had authorized the Debtors to terminate, effective as of April 1, 2007, all their non-pension retiree benefits for non-union active employees that have not retired on or before March 30, 2007. The Debtors will terminate the non-union pension benefits effective as of July 1, 2007, in consideration for the payment of US$78,800,000 to fund a Voluntary Employees' Benefit Association trust for the Non-Union Retirees. The Debtors' obligation to contribute to the VEBA Trust will have the status of an allowed administrative expense. The Non-Union Retiree VEBA will bear all costs, fees and expenses incurred for the creation of the Trust except with respect to reasonable professional fees and expenses of Stahl Cowen Crowley, LLC, the Retiree Committee's bankruptcy counsel, and The Segal Company, the Retiree Committee's actuarial and benefits claim. The parties clarify that the Stipulation is not intended to mandate or provide for the type, nature or duration of benefits or payments that may be offered or provided by the Non-Union Retiree VEBA. All decisions with respect to the benefits will be made within the sole discretion the trustees of the Non-Union Retiree VEBA. The parties mutually release all claims, lawsuits or causes of actions they have against each other. The parties further agree that the Debtors will provide the Retiree Committee, at no cost, access to their counsel, their actuary, and their human resources department for the formation of the VEBA Trust. The Debtors will provide information on life insurance conversion options and will reasonably assist the non-union retirees in the conversion of their life insurance policies; provided that the Debtors will not be required to take any actions that will result in the Debtors incurring out-of-pocket expenses in respect of the assistance. The Debtors will comply with Section 4980B of the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 with regard to making available to the non-union retirees Consolidated Omnibus Budget Reconciliation Act continuation coverage. The Debtors will offer eligible non-union retirees an opportunity to elect COBRA continuation coverage; the agreement, however, will not apply if: (a) it is otherwise not required by, inconsistent with or contrary to applicable law; (b) the Debtors cease to provide any group health plan to their employees; (c) a non-union retiree fails to pay a COBRA premium; or (d) a non-union retiree becomes covered under any other group health plan. As of May 7, 2007, there are approximately 7,300 non-union retirees. If it is later determined that the number of non- union retirees increase by at least 100 individuals, then the Debtors and the Retiree Committee, in consultation with the Official Committee of Unsecured Creditors, will engage in good faith negotiations to work out a fair and equitable compromise. The Retiree Committee will elect or appoint a trustee or trustees of the Non-Union Retiree VEBA. The Debtors will have no obligations regarding the establishment or administration of the Non-Union Retiree VEBA. The Retiree Committee agrees to support any Chapter 11 plan of reorganization the Debtors may file, provided that that plan is consistent with the terms of the Stipulation. Claim Nos. 11384, 11388 though 11424, 11482 and 12912 filed by the Retiree Committee will be deemed withdrawn. 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 in the Asia- Pacific, Argentina in the Latin-American regions and Italy in Europe. 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 Jan. 3, 2007. They have until Mar. 5, 2007, to solicit acceptances to that plan. (Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Dominion Bond Rating Service downgraded Dana Corporation's Bank Debt rating to D from CCC, and cut the Senior Unsecured Notes rating to D from CC. DBRS's rating action follows the company's decision to file for Chapter 11 bankruptcy protection. The filing covers Dana and 40 U.S. subsidiaries of the company, and excludes Dana's European, South American, Asia-Pacific, Canadian, and Mexican subsidiaries. Following Dana Corporation's announcement that it has filed for Chapter 11 bankruptcy court protection and defaulted on its debt agreements, Fitch downgraded Dana's issuer default rating to 'D' from 'C'. Fitch also affirms and removes from Rating Watch Negative the 'CC' rating and 'RR4' recovery rating on Dana's unsecured notes. These ratings will be withdrawn in 30 days. The 'B-' rating on the pre-petition senior secured facility and the recovery rating of 'RR1' are being withdrawn, as the facility is expected to achieve full recovery through the establishment of US$1.45 billion in debtor-in-possession facilities. Moody's Investors Service assigned B3 ratings to the US$1.45 billion debtor-in-possession financing of Dana Corporation as a Debtor-in-Possession. The DIP financing consists of a US$750 million super priority senior secured asset based revolving credit and a US$700 million super priority senior secured term loan B. PARMALAT SPA: U.S. Court Moves Injunction Hearing to June 21 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York has adjourned a hearing to consider entry of the Permanent Injunction until June 21, 2007, at 10:00 a.m. In the interim, the Preliminary Injunction is extended until June 25, 2007. Under the Preliminary Injunction Order, Judge Drain recognizes Dr. Enrico Bondi, as Extraordinary Administrator of Parmalat Finanziaria S.p.A., et al., as the exclusive "foreign representative" of the Foreign Debtors within the meaning of Section 101(24) of the Bankruptcy Code. The Foreign Debtors are subjects of a "foreign proceeding" within the meaning of Sections 101(23) and 304. Judge Drain rules that all creditors of the Reorganized Parmalat are, among others, enjoined from commencing or continuing any action or legal proceeding, including by way of counterclaim, against the Foreign Debtors or any of their subsidiaries or affiliates or Reorganized Parmalat, or the proceeds thereof, and from seeking discovery of any nature against the Foreign Debtors or any of their subsidiaries or affiliates or Reorganized Parmalat. The Civil and Criminal Court of Parma will have exclusive jurisdiction to hear and determine any suit, action, claim or proceeding, other than the SEC Action, and to settle all disputes, which may arise out of the construction or interpretations of the Italian Plan, as defined in the Section 304 Petition, or out of any action taken or omitted to be taken by any person or entity in connection with the administration of the Italian Plan. Nothing in the Order is intended to limit the jurisdiction of any court of competent jurisdiction in Italy dealing with the Foreign Debtors or Reorganized Parmalat and any claims brought by Italian Proceeding Creditors against the Foreign Debtors or Reorganized Parmalat or any other person or entity. Pursuant to Rule 7065 of the Federal Rules of Bankruptcy Procedure, the security provisions of Rule 65(c) of the Federal Rules of Civil Procedure will be waived. Objections to Proposed Permanent Injunction Order Before Judge Drain's ruling, ABN AMRO Bank N.V., holder of a promissory note guaranteed by Parmalat S.p.A., asked the Court to deny or condition Parmalat's request for Permanent Injunction, on the grounds that the claims process in the Italian proceeding is prejudicial to it and other similarly situated creditors, and does not provide for just treatment of creditors. On ABN AMRO's behalf, Christopher J. Caruso, Esq., at Moses & Singer LLP, in New York, asserted that Parmalat is relying on "data certa" -- a provision of Italian law that is antithetical to the principles of U.S. bankruptcy law -- to object to the creditor's guarantee claim in the Italian proceedings despite the fact that the guarantee is conspicuously dated and is governed by New York law. Moreover, the Italian courts have refused to permit ABN AMRO to introduce additional evidence to prove that the Guarantee date is correct. ABN AMRO insisted that the Bankruptcy Court should either condition its grant of permanent injunctive relief on Parmalat's agreement to withdraw its data certa objection to ABN's guarantee claim, or deny Parmalat's request for a permanent injunction so creditors' claims can be resolved fairly in appropriate forum and pursuant to the proper law. In addition, BankBoston N.A., FleetBoston Financial, Bank of America Corporation, Bank of America National Trust & Savings Association, Banc of America Securities LLC, and Bank of America, N.A., stated that, if the Bankruptcy Court is inclined to grant any permanent injunctive relief to Parmalat, the scope of the proposed Permanent Injunction is impermissibly broad and should be narrowed or clarified. The Bank opposed entry of the proposed Permanent Injunction to ensure that: (i) the "unfair and prejudicial" data certa objections to the allowance of claims are withdrawn and resolved; (ii) any permanent injunctive relief is limited to recognizing the terms of the Composition in the U.S. and does not create substantive rights that the Foreign Debtors did not receive under Italian law; and (iii) the proposed Permanent Injunction does not contravene the Withdrawal Order by affecting any of the Bank's rights in the District Court Litigation. Dr. Bondi Addresses Objections Representing Dr. Bondi, Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New York, stated that the Foreign Debtors' Italian proceedings are clearly worthy of comity and the relief requested since Italy's bankruptcy system comports with U.S. standards of fundamental fairness. Ms. Goldstein said BANA lacks standing to object because the District Court has withdrawn the reference with respect to its claims. Ms. Goldstein added that the data certa principle does not render the Italian proceedings unfair or unworthy of Section 304 relief. As an initial matter, she said, no critique of data certa will change the fact that BANA and BankBoston's claims are being challenged on multiple grounds that no resolution of the data certa objections could ensure admission of those claims. Because BofA acknowledges that those non-data certa defenses should be adjudicated in Italy, its assault on data certa is a diversion designed to obfuscate the issues, Ms. Goldstein noted. Ms. Goldstein also pointed out that BofA failed to demonstrate that Italian law or the principle of data certa is repugnant to U.S. policy. "Unlike any other creditor appearing in these 304 proceedings, Bank of America is the subject of a US$10,000,000,000 lawsuit by the Foreign Debtors in the District Court; and, unlike any creditor with whom the Foreign Debtors have settled, BankBoston's claims are subject to clawback claims by Dr. Bondi," Ms. Goldstein asserted. Furthermore, in a separate filing, the Foreign Debtors addressed the objections filed by the Bingham Noteholders; the Pension Benefit Guaranty Corporation; Grant Thornton International; the lead plaintiffs for the putative class in the securities fraud litigation pending before the United States District Court for the Southern District of New York; and Israel Discount Bank of New York. In February 2007, the Bingham Noteholders opposed the entry of the Permanent Injunction based on the belief that their agreement with the Foreign Debtors relating to the admission of certain conditionally admitted claims had fallen apart due to a dispute relating to the admission of other claims asserted under Article 2362 of the Italian Civil Code. In the Foreign Debtors' Feb. 22, 2007, reply and at the Feb. 27, 2007, status conference, the parties had pursued a potential settlement of the 2362 Claims but, ultimately, the Foreign Debtors determined that a settlement could not be justified in light of recent Italian court decisions that question the propriety of Article 2362 claims. Therefore, Ms. Goldstein said, as to the Bingham Noteholders' Objection, there is no basis for the Bankruptcy Court to permit the noteholders to litigate the 2362 Claims in the U.S., as those Claims are already pending before the Parma Court. Ms. Goldstein also stated that PBGC's reliance on the provisions of Sections 524(e), 1123 and 1141 of the Bankruptcy Code as grounds for objecting to the issuance of the Permanent Injunction is inapposite because the provisions have no application in a Section 304 case. Moreover, Grant Thornton and the Plaintiffs filed their limited objections out of the abundance of caution to confirm that the Permanent Injunction does not impact matters withdrawn from the Bankruptcy Court by the District Court. According to Ms. Goldstein, the Foreign Debtors and IDB are in the process of finalizing the terms of a settlement agreement with respect to IDB's claims filed with the Parma Court. Consequently, IDB has agreed to support entry of the Permanent Injunction. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. (Parmalat Bankruptcy News, Issue No. 88; Bankruptcy Creditors' Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/) PARMALAT SPA: Earns EUR111.1 Million for First Quarter 2007 ----------------------------------------------------------- Parmalat S.p.A. posted EUR111.1 million in net profit on EUR933.2 million in net revenues for the first quarter ended March 31, 2007, compared with EUR13.4 million in net profit on EUR953.2 million in net revenues for the first quarter ended March 31, 2006, various reports say. Parmalat attributed the first quarter profit hike to higher sales of higher-priced products. "Higher unit sales and a better sales mix with a greater percentage of products with higher value-added account for this improvement," Bloomberg cited a Parmalat statement. The company also attributed its higher sales the euro's rise against foreign currencies. Parmalat, however, warned that a further euro rise against other currencies could harm its results for 2007. Zero Financial Debt Parmalat also improved its net financial position from a EUR170 million net indebtedness as of Dec. 31, 2006, to EUR87.4 million in net financial assets, Reuters relates. The company attributed the change to collection of EUR112 million in settlements with Banca Nazionale del Lavoro and of EUR132.2 million in settlements with Deloitte & Touche S.p.A., Dianthus S.p.A. and the Banca Popolare di Milano Group. Bloomberg News notes that Parmalat has been using funds gained from lawsuits stemming from the bankruptcy to pay off debt and possibly acquire new assets. According to Bloomberg News, the company has reached U.S. and Italian settlements totaling more than US$800 million. The company plans to invest up to EUR170 million this year, EUR70 million of which will be for "strategic initiatives" to improve plants in Australia and Canada, Reuters relates citing Chief Operating Officer Carlo Prevedini. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. =================== K A Z A K H S T A N =================== ADILET KURYLYS: Creditors Must File Claims by June 1 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Adilet Kurylys insolvent. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 57 050057 Almaty Kazakhstan -- or -- JSC Kazpochta Post Office Box 1 050057 Almaty Kazakhstan Tel: 8 (3272) 37-03-31 AGENCY DEMI: Creditors' Claims Due June 22 ------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Agency Demi insolvent. Creditors have until June 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Kataev Str. 24-8 Pavlodar Kazakhstan Tel: 8 (3182) 54-37-22 8 701 228 47-28 ARKA-AGRO LLP: Claims Filing Period Ends June 15 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola has declared LLP Arka-Agro insolvent on March 27. Creditors have until June 15 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Abai Str. 89-308 Kokshetau Akmola Kazakhstan CANARGO ENERGY: Posts US$5.9 Mln Net Loss in Qtr Ended March 31 --------------------------------------------------------------- CanArgo Energy Corporation reported a net loss of US$5,931,803 on oil and gas sales of US$446,847 for the first quarter ended March 31, 2007, compared with a net loss of US$5,459,142 on oil and gas sales of US$698,945 for the same period ended March 31, 2006. The company has incurred net losses from continuing operations for the past 3 years. At March 31, 2007, the company had cash and cash equivalents available for general corporate use or for use in the Georgian operations of approximately US$10,608,000. In the three months ended March 31, 2007, the company experienced net cash outflows from operations, including capital expenditures, of approximately US$5,000,000. The company anticipates it will require additional funding within the next two months to continue with its Georgian operations as planned. At March 31, 2007, the company's balance sheet showed US$147,899,613 in total assets, US$54,581,340 in total liabilities, US$10,918,311 in minority interest in subsidiaries, US$2,119,530 in temporary equity, and US$80,280,432 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?1f18 About CanArgo Energy CanArgo Energy Corp. (AMEX: CNR) -- http://www.canargo.com/ -- is an oil and gas exploration and production company operating in the oil and gas provinces of the former Soviet Union. CanArgo is currently focused primarily on Georgia in the Caucasus, and more recently has become involved in the major hydrocarbon producing country of Kazakhstan. In Georgia, the company has been actively exploring for new deposits of oil and gas, and is currently appraising what could be a substantial new discovery of oil. * * * Going Concern Doubt As reported in the Troubled Company Reporter on March 26, 2007, LJ Soldinger Associates LLC raised substantial doubt about the ability of CanArgo Energy Corp. to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm stated that the company may not have sufficient funds to execute its business plan. KAZ BIDAI: Proof of Claim Deadline Slated for June 1 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Kaz Bidai insolvent on Nov. 8, 2006. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office One Furmanov Str. 103 Almaty Kazakshtan Tel: 8 (3272) 61-27-71 KEMER OJSC: Claims Registration Ends June 22 -------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared OJSC Kemer insolvent on March 26. Creditors have until June 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office 523 Maulenov Str. 92 Almaty Germany Tel: 8 701 579 42-35 MAESTRO PLUS: Proof of Claim Deadline Slated for June 1 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Maestro Plus insolvent on Dec. 1, 2006. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office One Furmanov Str. 103 Almaty Kazakshtan Tel: 8 (3272) 61-27-71 NAN-ATBASAR LLP: Claims Filing Period Ends June 15 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared has declared LLP Nan-Atbasar insolvent. Creditors have until June 15 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Abai Str. 89-308 Kokshetau Akmola Kazakhstan NOVAYA JIZN: Creditors' Claims Due June 1 ----------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Novaya Jizn insolvent. Creditors have until June 1 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 57 050057 Almaty Kazakhstan -- or -- JSC Kazpochta Post Office Box 1 050057 Almaty Kazakhstan Tel: 8 (3272) 37-03-31 STRELA-EXPRESS TRANSSERVICE: Claims Registration Ends June 22 ------------------------------------------------------------- Branch of CJSC Strela-Express Transservice has declared insolvency. Creditors have until June 22 to submit written proofs of claim to: Branch of CJSC Strela-Express Transservice Jybek joly Str. 1 Akkent Ulkenshygansky Panfilovsky District Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== MULTIPLEKS INC: Creditors Must File Claims by July 4 ---------------------------------------------------- LLC Multipleks Inc. has declared insolvency. Creditors have until July 4 to submit written proofs of claim to: Micro District 8, 3-4 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== ARES EURO CLO I: Moody's Rates EUR19.5 Million Notes at Low B ------------------------------------------------------------- Moody's has assigned definitive credit ratings to the notes issued by Ares Euro CLO I B.V., a Dutch special purpose company. The ratings are: -- Aaa to the EUR151,200,000 Class A-1 Senior Secured Floating Rate Notes due 15 May 2024 -- Aaa to the EUR37,800,000 Class A-2 Senior Secured Floating Rate Notes due 15 May 2024 -- Aaa to the EUR52,000,000 Class A-3 Senior Secured Floating Rate Notes due 15 May 2024 -- Aa2 to the EUR8,000,000 Class B-1 Senior Secured Deferrable Floating Rate Notes due 15 May 2024 -- Aa2 to the EUR13,000,000 Class B-2 Senior Secured Deferrable Fixed Rate Notes due 15 May 2024 -- A2 to the EUR19,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 15 May 2024 -- Baa2 to the EUR26,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 15 May 2024 -- Ba3 to the EUR13,500,000 Class E Senior Secured Deferrable Floating Rate Notes due 15 May 2024 -- B2 to the EUR6,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 15 May 2024 -- Baa1 to the EUR8,000,000 Class Q Combination Notes due 2024 The company's EUR24,500,000 Class G-1 Subordinated Notes and EUR5,000,000 Class G-2 Subordinated Notes were also issued but not rated by Moody's. The ratings of the Class A-1, A-2, A-3, B-1, B-2, C, D, E and F Notes address the expected loss posed to investors by the legal final maturity in May 2024. The rating assigned to the Class Q Combination Notes by Moody's addresses the expected loss posed to the investors by the legal final maturity in 2024 as a proportion of the Rated Balance, where the Rated Balance is equal, at any time, to the principal amount of the Class Q Combination Notes on the closing date minus the aggregate of all payments made from the closing date to such date, either through interest or principal payments. It is not an opinion about the ability of the issuer to pay interest. These ratings are based upon: 1. An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 3. The currency swap transactions, which insulate Ares Euro CLO I B.V. from the volatility of the foreign currency exchange rates, for Non-Euro denominated obligations; and 4. The legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a EUR350,000,000 portfolio of mostly European Senior and Mezzanine loans (with a predominance of senior secured loans). This portfolio is dynamically managed by Ares Management Limited. This portfolio will be partially acquired at closing date and partially during the 12 months ramp-up period in compliance with portfolio guidelines (which include, among other tests, a diversity score test, a weighted average rating factor test and a weighted average spread test). Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to direct the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. AUDATEX HOLDINGS: Moody's Lifts Rating to B1 After Parent IPO ------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of Audatex Holdings, LLC to B1 from B2 upon the completion of the recent initial public offering of its parent holding company, Solera Holdings, LLC. This rating action concludes the review for possible upgrade initiated on April 12, 2007. The rating outlook is stable. Audatex used $288 million of net proceeds contributed to the company in connection with Solera's IPO and over $600 million of proceeds from a new first lien term loan to repay existing first lien, second lien and subordinated indebtedness of certain of its subsidiaries. Moody's converted the provisional (P)B1 rating on the new secured credit facility of certain of subsidiaries of Audatex into a definitive B1 rating and withdrew the ratings on the company's recently refinanced first and second lien credit facilities. Pro forma for the IPO and refinancing, Audatex is well positioned in the B1 rating category based on leverage, coverage and cash flow metrics. The ratings continue to be supported by the company's leading worldwide market position in its niche market, solid geographic and customer diversification and strong operating margins. The ratings remain constrained by market share losses in the U.S. market, intense price competition and the potential for new competitors or new software products to erode market share. Moody's upgraded these ratings of Audatex Holdings, LLC: -- Corporate Family Rating, to B1 from B2 -- Probability of Default Rating, to B1 from B2 Moody's took these rating actions with respect to Audatex Holdings IV B.V. (an indirect wholly owned subsidiary of Audatex and a holding company for certain European operating subsidiaries): -- $25 million equivalent Euro First Lien Revolving Credit Facility due 2012, to B1(LGD 3- 49%) from (P)B1 (LGD 3- 49%) -- $357.5 million equivalent Euro First Lien Term Loan due 2013, to B1(LGD 3- 49%) from (P)B1 (LGD 3- 49%) -- Withdrew $25 million equivalent Euro First Lien Revolving Credit Facility due 2012, Ba3 (LGD 2-29%) -- Withdrew $287 million equivalent Euro First Lien Term Loan due 2013, Ba3 (LGD 2-29%) -- Withdrew $216 million equivalent Euro Second Lien Term Loan due 2013, Caa1 (LGD 5- 78%) Business Services Group Holdings B.V., a holding company for the Netherlands operations, will be a co-borrower under these facilities. Moody's took these rating actions with respect to Audatex North America, Inc. (an indirect wholly owned subsidiary of Audatex and a holding company for the North American operating subsidiaries): -- $25 million First Lien Revolving Credit Facility due 2012, to B1(LGD 3- 49%) from (P)B1 (LGD 3- 49%) -- $250 million First Lien Term Loan due 2013, to B1(LGD 3- 49%) from (P)B1 (LGD 3- 49%) -- Withdrew $25 million First Lien Revolving Credit Facility due 2012, Ba3 (LGD 2-29%) -- Withdrew $239 million equivalent Euro First Lien Term Loan due 2013, Ba3 (LGD 2-29%) Headquartered in San Ramon, California, Audatex is a leading provider of information and software solutions to the automobile claims industry. Reported revenue for the twelve month period ended December 31, 2006 was $447 million. =========== P O L A N D =========== INTERBROK INVESTMENTS: Polish Court Rules Bankruptcy ---------------------------------------------------- A Polish Court declared Interbrok Investments (II) bankrupt after Interbrok's clients and Andrzej K., one of its owners, filed a motion for insolvency, Polish News Bulletin reports. Polish News relates that several of the company's 900 clients, including Self-Defence MP Janusz Wojcik, former President's Minister Marek Ungier, journalist Malgorzata Niezabitowska and one of the former PKN Orlen CEOs, have formed a committee to represent their interests. According to a report by Puls Biznesu, Interbrok Investments allegedly embezzled around EUR133.5 million from its clients. The prosecutor's office is also looking into BRE Bank's role in Interbrok's case, Puls Biznesu relates. Investment accounts of Interbrok's clients were run by BRE Bank. "We will check how Interbrok cooperated with BRE Bank," Jaroslaw Onyszczuk from Warsaw prosecutor's office told Puls Biznesu. Puls Bizneus said that the listed bank informed the prosecutor's office that Interbrok had falsified bank guarantees stating that BRE Bank was guaranteeing 90% of Interbrok clients' funds. Headquartered in Poland, Interbrok Investment is an investment management company. Founded in 1998, it claimed to have EUR400 million under management, invested in forex market and operated for exclusive group of clients. SPCM SA: Moody's Affirms B3 Rating on Sr. Unsecured Notes --------------------------------------------------------- Moody's Investors Service affirmed the corporate family rating of SPCM SA at B1 and rating of its senior unsecured notes at B3 following the announcement of the proposed EUR50 million top up of the notes. The proceeds are expected to be used to provide additional liquidity as the Company continues to expand. Taking into account the proposed change in the liabilities structure, Moody's adjusted the LGD assessment on the notes from LGD 5 (85%) to LGD 5 (83%). Outlook on the ratings is stable. In 2006, the group's net revenue grew 17% supported by continuous strength in the pricing environment and growth in volumes of petroleum and mining applications chemicals, while gross margin remained stable (2006 EBITDA margin was affected by provisions). Going forward, Moody's notes that further growth in absolute performance indicators may be affected by USD/EUR exchange valuations (with only 30% of revenues derived in Europe). The group continues to pursue growth in new markets and through new applications and reinvests its operating cash flow. In 2006, its FCF was further affected by several extraordinary items (anticipated at the time of the assigning of the initial rating in June 2006). At the end of 2006, on the adjusted basis the leverage stood close to 4 times and at 3% on FCF/Adjusted Debt basis (net of extraordinary items). SPCM SA is a holding company for the SNF Group, one of the world's leading producers of acrylamide-based water soluble polymers used in water treatment, as well as in mining, pulp and paper and enhanced oil extraction. SNF is located in Saint- Etienne, France and in 2006 reported EUR852 million in revenues and EUR93 million in EBITDA. SNF has operations in Brazil, Canada, Bulgaria, Korea, Italy, Poland, Russia, Sweden, Turkey, and the United States, among others. =============== P O R T U G A L =============== NOBLE GROUP: Moody's Affirms Upcoming Bond Issue at Ba1 ------------------------------------------------------- Moody's Investors Service affirmed the Ba1 corporate family rating and senior unsecured bond rating of Noble Group Ltd. The outlook on both ratings is stable. This affirmation follows Noble's announcement of its plan to issue about US$200 million of zero coupon convertible bonds. Proceeds from the bonds will mainly be used to refinance existing short-term debt. "Since the company's overall debt level is not expected to increase, there is no immediate rating pressure," says Elizabeth Allen, Moody's lead analyst for Noble. "Noble's improved operating performance in the last six months has not yet resulted in a strengthening of its credit profile due to an increase in the company's debt to fund a combination of increasing working capital requirements and fixed-asset investments," says Ms. Allen. "As a result, Noble's financial position is at the lower end of its current Ba1 rating." "While Noble continues to deliver high growth rate with 1Q07 revenues rising 47% compared to 1Q 2006, yet the company needs to demonstrate it can continue to grow its earnings and cash flow while limiting additional debt to fund its working capital requirement," adds Ms. Allen. "Failure to do so would pressure the ratings." Moody's will consider a rating downgrade if: 1) Noble fails to sustain its profitability and improve its credit profile, such that retained cash flow/adjusted net debt is consistently below 12-15%; 2) it adopts an aggressively debt-funded acquisition/investment plan for new businesses, thereby increasing its overall financial and business risk profile; 3) there is material weakening in the company's balance sheet liquidity, with its cash balance plus available committed cash facilities falling below 15% of total assets, and/or its free cash falling below USD300m; and/or 4) it incurs large trading or credit losses. Headquartered in Hong Kong and listed on the Singapore Stock Exchange, Noble Group Ltd is mainly engaged in the sourcing and distribution of a wide range of commodity products in agriculture, energy and metals as well as the logistics management business. It has over 70 offices in 42 countries including Argentina, Brazil, Canada, Italy, Portugal, Spain, Switzerland, Turkey, and the United States. =========== R U S S I A =========== AGRO-KHIM: Creditors Must File Claims by May 28 ----------------------------------------------- Creditors of Municipal Unitary Enterprise Agro-Khim (TIN 0271005370) have until May 28 to submit proofs of claim to: B. Bakhtiyarov Temporary Insolvency Manager Yakutova Str. 39a Yanaul 452800 Bashkortostan Russia The Arbitration Court of Bashkortostan will convene at noon on Aug. 13 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A47-1884/ 07-14GK. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: Municipal Unitary Enterprise Agro-Khim Yakutova Str. 39a Yanaul 452800 Bashkortostan Russia BAZHENOVSKIY OJSC: Creditors Must File Claims by June 28 -------------------------------------------------------- Creditors of OJSC Bazhenovskiy (TIN 0255010703) have until June 28 to submit proofs of claim to: R. Yusupov Insolvency Manager Post User Box 163 Ufa 450096 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-15026/06-G-PAV/SVI. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: OJSC Bazhenovskiy Administrativnaya 1 Bazhenovo Belebeevskiy 452031 Bashkortostan Russia BUCYRUS INTL: Underwriters Buy Additional 692,000 Class A Stock --------------------------------------------------------------- Bucyrus International Inc. disclosed that the underwriters of its public offering of 4,614,000 shares of its Class A common stock have exercised in full their option to purchase an additional 692,100 shares of Class A Common Stock at a price to the public of US$66.35 per share. After deducting underwriting discounts and commissions and estimated offering expenses, Bucyrus expects net proceeds from the sale of the additional shares of approximately US$44 million, which will be used by Bucyrus to further reduce its borrowings under its new term loan facility used to finance the acquisition of DBT GmbH. The sale of these shares is expected to close on May 15, 2007. On May 10, 2007, Bucyrus has priced its public offering of 4,614,000 shares of Class A common stock at US$66.35 per share. The net proceeds from the sale of those shares will be approximately US$292.3 million, after deducting underwriting discounts and commissions and estimated offering expenses, all of which will be used by Bucyrus to repay a portion of its new term loan facility. The sale of those shares is also expected to close on May 15, 2007. The offering was marketed through a group of underwriters, including Lehman Brothers Inc. as sole-book running manager. The offering is made by means of a prospectus and the related prospectus supplement. The prospectus and the related prospectus supplement may be obtained from: Lehman Brothers Inc. c/o Broadridge Integrated Distribution Services NO. 1155 Long Island Avenue Edgewood, NY 11717 About Bucyrus International Bucyrus International -- http://www.bucyrus.com/-- is a leading manufacturer of electric mining shovels, walking draglines and rotary blasthole drills and provides aftermarket replacement parts and services for these machines. For the 12 months ended Sept. 30, 2006, Bucyrus had sales of US$705 million. Bucyrus is headquartered in South Milwaukee, Wisconsin. DBT has eight facilities around the world and approximately 3,200 employees. The company has Latin American operations in Brazil and Chile, and Asia Pacific operations in China, and European operations in Russia. * * * As reported in the Troubled Company Reporter on April 25, 2007, Moody's Investors Service confirmed the corporate family rating of Bucyrus International, Inc. at Ba3. Moody's also assigned Ba3 ratings to Bucyrus': (i) US$400 million revolving credit facility; (ii) EUR50 million revolving credit facility; and (iii) US$825 million secured term loan. Bucyrus' rating outlook is stable. The action concludes the ratings review initiated on Dec. 18, 2006. DIARY PRODUCT: Creditors Must File Claims by May 28 --------------------------------------------------- Creditors of LLC Diary Product have until May 28 to submit proofs of claim to: I. Gorn Insolvency Manager Post User Box 1530 634006 Tomsk Russia The Arbitration Court of Tomsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-1136/07. The Court is located at: The Arbitration Court of Tomsk Kirova Pr. 10 634050 Tomsk Region Russia The Debtor can be reached at: LLC Diary Product Lenina Str. 124 Zyryanskoye Zyryanskiy 636850 Tomsk Russia GOLDEN TELECOM: Net Income Dips 33% to US$12.6 Mln in Q1 2007 ------------------------------------------------------------- Golden Telecom disclosed its financial and operating results for the first quarter ended March 31, 2007. The company reported net income of US$12.6 million on revenues of US$255.7 million in the first quarter of 2007 compared with net income of US$18.8 million on revenues of US$178.1 million in 2006. EBITDA during the first quarter of 2007 was US$52.6 million compared with US$50.8 million in 2006. "In the first quarter of 2007, our results were in line with the guidance we gave earlier," said Golden Telecom CEO Jean-Pierre Vandromme. "Revenues increased 44% compared to the first quarter of 2006. For the second year in the row, despite contrary seasonal trends, we increased our revenues by 2% in the first quarter of the year compared to the fourth quarter of the previous year. "Major corporate developments include: -- Plans to roll out Fiber to the Building networks in the Top-65 Russian cities with a combined population of 65 million. We plan to enable broadband access and the provision of Triple-play services for 65% of the households in these cities. The networks will cover approximately 15.6 million households with 42.3 million people; -- Signing of the Share Purchase Agreement for the acquisition of Corbina Telecom, which will considerably accelerate the deployment of FTTB networks combining the resources and experience of two companies; -- Acquisition of licenses and frequencies for Digital Video Broadcasting Terrestrial broadcasting with capacity of 112 channels over 7 frequencies in Moscow and 96 channels over 6 frequencies in St. Petersburg using the MPEG-4 format; -- Commercial launch of our WiFi network in Moscow, which is the largest commercial metropolitan WiFi network in Europe. As of today, we have approximately 10,000 paying customers; and -- Continuous expansion, aimed at increasing presence in largest cities in Russia. Through organic growth and acquisitions we have an established presence in 18 out of the Top-20 cities, with an estimated market share of 15% from 13% reported a year ago. "We continue to execute our strategy with the goal to make Golden Telecom the leading fixed-line communication operator in Russia and the CIS," Mr. Vandromme added. Remarking on the first quarter 2007 results, Chief Financial Officer Boris Svetlichny noted, "Excluding the cost of SARs, our operating income grew 23% year-on-year, while net income grew 15%." "The margins in the first quarter of 2007 were affected by following factors: -- A switch from the old regulatory framework to the new one in accordance with our new DLD/ILD license. We began utilizing our new Federal Transit Network bearing operational costs for two network structures while phasing out redundant costs. We expect the cost optimization to take full effect in the second half of 2007; -- Operating costs related to the deployment of 17 zonal networks. We expect to start generating revenues and cost savings in the second half of 2007; and -- Implementation of new Irrevocable Right of Use agreements in order to replace existing rented intercity circuits. The transition process requires operation of both lines with additional costs which should disappear once the transition is completed. "We expect margins to improve once these projects have been completed. Our EBITDA for the full year is expected to be in line with the outlook we provided and includes the consolidation of Corbina Telecom which we plan to close in the second quarter of 2007. "The Board has approved the conversion of SARs into stock options to address the volatility in earnings resulting from costs related to equity based compensation. A proposed amendment to Golden Telecom's Equity Participation Plan to facilitate conversion is included in the proxy statement for the next annual meeting of shareholders scheduled for May 17, 2007. "In January 2007, we signed a US$275 million syndicated loan facility to help finance our continued broadband rollout, regional expansion and the acquisitions of Corbina Telecom and Fortland. We drew down US$75 million during the first quarter of 2007, bringing our debt-to-equity ratio to 0.1," Mr. Svetlichny added. Outlook for 2007 Golden Telecom reiterates its outlook for 2007 with 35-40% revenue growth including revenues of Corbina Telecom, which is expected to be consolidated from the second half of 2007 onwards. CAPEX will be approximately 20% of the company's revenues. Excluding SARs costs EBITDA is expected to grow by 30-35% in 2007. Golden Telecom, Inc. Condensed, Consolidated Balance Sheets (Amounts in millions of US$) (Unaudited) 12/31/06 3/31/07 ASSETS Current assets Cash and cash equivalents US$18.4 91.6 Accounts receivable, net 147.7 172.1 VAT receivable 21.5 24.6 Prepaid expenses and other assets 43.8 57.2 Total current assets 231.4 345.5 Property and equipment, net 552.3 582.2 Goodwill 180.5 182.6 Intangible assets, net 116.6 182.9 Restricted cash and other assets 26.4 32.6 -------- -------- TOTAL ASSETS 1,107.2 1,325.8 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses 146.1 194.3 VAT payable 2.7 7.7 Debt maturing within one year and current capital lease obligations 13.1 6.9 Other current liabilities 26.7 68.2 Total current liabilities 188.6 277.1 Long-term debt and capital lease obligations 1.6 78.5 Other liabilities 68.6 93.7 -------- -------- TOTAL LIABILITIES 258.8 449.3 Minority interest 31.2 46.6 SHAREHOLDERS' EQUITY Common stock 0.4 0.4 Additional paid-in capital 675.0 675.5 Retained earnings 66.7 71.1 Accumulated other comprehensive income 75.1 82.9 -------- -------- TOTAL SHAREHOLDERS' EQUITY 817.2 829.9 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,107.2 1,325.8 About Golden Telecom Headquartered in Moscow, Russia, Golden Telecom Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. * * * As of Feb. 6, 2007, Golden Telecom carries a long-term corporate credit rating of 'BB' Standard & Poor's. S&P said the outlook is stable. KUEDINSKIY BREWERY: Court Starts Bankruptcy Supervision Process --------------------------------------------------------------- The Arbitration Court of Perm commenced bankruptcy supervision procedure on LLC Kuedinskiy Brewery. The case is docketed under Case No. A50-2791/2007-B4. The Insolvency Manager is: A. Vyal' Post User Box 137 Taganskaya Str. 51 620051 Ekaterinburg Russia The Court is located at: The Arbitration Court of Perm Lunacharskogo Str. 3 Perm Russia The Debtor can be reached at: LLC Kuedinskiy Brewery Prigorodnaya Str. 22 Kueda Kuedinskiy 617700 Perm Russia MUROMSKIY ENGINEERING: Court Names A. Selishev to Manage Assets --------------------------------------------------------------- The Arbitration Court of Vladimir appointed A. Selishev as Insolvency Manager for OJSC Muromskiy Engineering Factory (TIN 3307001049). He can be reached at: A. Selishev Karacharovskoye Shosse 5 Murom 602251 Vladimir Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11-2346/2003-K1-6B. The Court is located at: The Arbitration Court of Vladimir Oktyabrskiy Pr. 14 600025 Vladimir Russia The Debtor can be reached at: OJSC Muromskiy Engineering Factory Karacharovskoye Shosse 5 Murom 602251 Vladimir Russia NIZHNEE LLC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Sverdlovsk commenced bankruptcy supervision procedure on LLC Nizhnee. The case is docketed under Case No. A60-3869/2007-S11. The Insolvency Manager is: A. Vyal' Post User Box 137 Taganskaya Str. 51 620051 Ekaterinburg Russia The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: LLC Nizhnee Saltanovo Novolyalinskiy 624400 Sverdlovsk Russia PONOMAREVSKIY BUTTER: Bankruptcy Hearing Slated for June 6 ---------------------------------------------------------- The Arbitration Court of Orenburg will convene at 11:00 a.m. on June 6 to hear the bankruptcy supervision procedure on OJSC Ponomarevskiy Butter and Cheese Making Mill. The case is docketed under Case No. A47-1884/07-14GK. The Temporary Insolvency Manager is: R. Galimov Chishminskaya 6 Davlekanovo 453400 Bashkortostan Russia The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Ponomarevskiy Butter and Cheese Making Mill Nauruzovo Ponomarevskiy Orenburg Russia PUSHKARSKAYA OJSC: Creditors Must File Claims by June 28 -------------------------------------------------------- Creditors of OJSC Poultry Farm Pushkarskaya have until June 28 to submit proofs of claim to: V. Chernyshov Insolvency Manager Room 227 Sovetskaya Str. 118 Tambov Russia The Arbitration Court of Tambov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-1856/06-10. The Debtor can be reached at: OJSC Poultry Farm Pushkarskaya Komsomolets Tambov Russia RAZDOLYE CJSC: Creditors Must File Claims by June 28 ---------------------------------------------------- Creditors of CJSC Razdolye have until June 28 to submit proofs of claim to: V. Smirnykh Insolvency Manager Popovo Vargashinskiy 641237 Kurgan Russia The Arbitration Court of Kurgan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-34-7534/2006. The Debtor can be reached at: CJSC Razdolye Popovo Vargashinskiy 641237 Kurgan Russia RITZIO ENTERTAINMENT: S&P Holds B Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Russia-based Ritzio Entertainment Group Ltd. The outlook, which was stable prior to the CreditWatch listing, is now negative. At the same time, the Russia national scale rating was lowered to 'ruBBB+' from 'ruA-'. Both ratings were removed from CreditWatch, where they were placed with negative implications on Dec. 28, 2006, following the Russian parliament's adoption of a new gaming bill and its enactment into law. "The affirmation of the corporate credit rating reflects the group's adequate liquidity and conservative financial policy," said Standard & Poor's credit analyst Anton Geyze. "The lowering of the Russia national scale rating reflects the extremely high risk arising from changes in gaming legislation in Russia and limited clarity on how Ritzio plans to expand its activities outside its domestic operations." The ratings are constrained by the group's vulnerability to the new Russian gaming legislation and major dependence on the Russian market. Additional risks stem from the group's concentrated private ownership, aggressive dividend policy, and limited access to equity financing. These risks are offset somewhat by Ritzio's leading position in the slot machine segment of Russia's gaming industry and more-than-adequate credit protection for the current rating level. "We expect the going-concern risk for the group arising from the effects of the gaming law in its current form, as well as the challenges of expanding to foreign markets, to continue," said Mr. Geyze. S&P will closely monitor the group's development outside Russia. The outlook could be revised to stable if Ritzio succeeds in increasing its geographic diversification and reduces reliance on the Russian market while maintaining adequate credit protection measures. Stabilization of Russia's regulatory environment for gaming would also signal upside potential. S&P do not anticipate that the first restrictions, set to take effect from July 1, 2007, will affect Ritzio: S&P expect only a few regions within the Russian Federation will ban gaming, as they are entitled to do by the new law. Should restrictions be more widespread than expected, and not limited mostly to Islamic regions, the ratings could be revised downward. ROSNEFT OIL: Anti-Monopoly Service to Okay Yukos Asset Purchases ---------------------------------------------------------------- The Russian Federal Anti-Monopoly Service would approve OAO Rosneft Oil Co. acquisition of OAO Yukos Oil Co. assets won through a series of auction from March to May, RIA Novosti reports. Rosneft has won these assets through its subsidiaries: Acquiring Unit Assets Price -------------- ------ ----- RN-Razvitiye 9.44% stake in Yukos Oil RUR197.8 billion OOO Neft-Aktiv Samara assets RUR165.5 billion OOO Neft-Aktiv East Siberian Assets RUR177.7 billion Rosneft currently holds a RUR264.6 billion (US$10 billion) claim against Yukos, which entitled Rosneft a seat in the firm's creditors' committee. Igor Artemyev, FAS chief, said the service would require Unitex, which won the right to purchase Yukos' petrol station assets on May 10, to disclose its ownership structure to receive approval. In a TCR-Europe report on May 11, 2007, Unitex offered RUR12.4 billion or US$484.3 million to acquire Yukos' 537 filling stations, 62 percent more than the RUR7.7 billion price tag set by the auctioneer. 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. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. SPETS-SERVICE OJSC: Creditors Must File Claims by May 28 -------------------------------------------------------- Creditors of OJSC Spets-Service have until May 28 to submit proofs of claim to: E. Lukinykh Temporary Insolvency Manager Severnaya Str. 48a-18 Nizhnevartovsk 628616 Khanty-Mansiyskiy Russia The Arbitration Court of Khanty-Mansiyskiy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A-75-845/2007. The Court is located at: The Arbitration Court of Khanty-Mansiyskiy Lenina Str. 54/1 Khanty-Mansiysk Autonomous Russia The Debtor can be reached at: E. Lukinykh Temporary Insolvency Manager Severnaya Str. 48a-18 Nizhnevartovsk 628616 Khanty-Mansiyskiy Russia STROY-DETAIL LLC: Creditors Must File Claims by June 28 ------------------------------------------------------- Creditors of LLC Factory Stroy-Detail have until June 28 to submit proofs of claim to: A. Kalmykov Insolvency Manager Apartment 89 Butlerova Str. 38 117342 Moscow Russia The Arbitration Court of Kaluga commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A23-3546/06B-17-199. The Court is located at: The Arbitration Court of Kaluga Staryj Torg Square 4 Kaluga Russia The Debtor can be reached at: LLC Factory Stroy-Detail Pervomayskaya Str. 1 Sosenskiy Kaluga Russia SV-GAS CJSC: Creditors Must File Claims by June 28 -------------------------------------------------- Creditors of CJSC SV-Gas have until June 28 to submit proofs of claim to: S. Shkarovskaya Insolvency Manager Room 10 Melnikajte Str. 90a 625026 Tyumen Russia Tel/Fax: (3452) 20-98-07 The Arbitration Court of Tyumen commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-70-6136/3-2006. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: CJSC SV-Gas 8th Location 41-40 Tobolsk Tyumen Russia VICTORIA OJSC: Creditors Must File Claims by June 28 ---------------------------------------------------- Creditors of OJSC Victoria have until June 28 to submit proofs of claim to: A. Rogatnev Insolvency Manager Office 27 Kirova Str. 9 394018 Voronezh Russia The Arbitration Court of Voronezh commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A 14-5451/02/278/20b. The Court is located at: The Arbitration Court of Voronezh Room 606 Srednemoskovskaya Str. 77 Voronezh Russia The Debtor can be reached at: OJSC Victoria Sovetskaya Str. 35a Anna Voronezh Russia VOROBYEVO OJSC: Creditors Must File Claims by May 28 ---------------------------------------------------- Creditors of OJSC Vorobyevo have until May 28 to submit proofs of claim to: I. Klemeshov Insolvency Manager Post User Box 173 630077 Novosibirsk-77 Russia The Arbitration Court of Novosibirsk will convene at noon on Sept. 12 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A45-1732/07-29/5. The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: OJSC Vorobyevo Vorobyevo Kolyvanovskiy 633167 Novosibirsk Russia YUKOS OIL: Anti-Monopoly Service to Okay Assets Sold to Rosneft --------------------------------------------------------------- The Russian Federal Anti-Monopoly Service would approve OAO Rosneft Oil Co. acquisition of OAO Yukos Oil Co. assets won through a series of auction from March to May, RIA Novosti reports. Rosneft has won these assets through its subsidiaries: Acquiring Unit Assets Price -------------- ------ ----- RN-Razvitiye 9.44% stake in Yukos Oil RUR197.8 billion OOO Neft-Aktiv Samara assets RUR165.5 billion OOO Neft-Aktiv East Siberian Assets RUR177.7 billion Rosneft currently holds a RUR264.6 billion (US$10 billion) claim against Yukos, which entitled Rosneft a seat in the firm's creditors' committee. Igor Artemyev, FAS chief, said the service would require Unitex, which won the right to purchase Yukos' petrol station assets on May 10, to disclose its ownership structure to receive approval. In a TCR-Europe report on May 11, 2007, Unitex offered RUR12.4 billion or US$484.3 million to acquire Yukos' 537 filling stations, 62 percent more than the RUR7.7 billion price tag set by the auctioneer. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. 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: Anti-Monopoly Service Denies Asset Sale to Promregion ---------------------------------------------------------------- The Russian Federal Anti-Monopoly Service refused to effect Promregion Holding's purchase of OAO Yukos Oil Co.'s Krasnodar assets, RIA Novosti reports. Nikolai Lashkevich, press secretary of Eduard Rebgun, told RIA Novosti that FAS has sent the Yukos bankruptcy receiver a purchase denial notice relating to the sale of the Krasnodar assets to Promregion. Mr. Lashkevich suggested that a repeat auction may be held or the second best offer may be declared the winner, RIA Novosti adds. In a TCR-Europe report on May 8, 2007, Promregion won a bid to acquire Yukos' Krasnodar assets for RUR4.9 billion. Versar, Promregion, and Neft Aktiv (an OAO Rosneft Oil subsidiary) participated in the ninth auction for the bankrupt oil concern's assets. The lot carried a RUR3.7 billion starting price, a bid increment of RUR37.1 million, and a required deposit sum of RUR742.4 million. The lot, RIA Novosti relates, is comprised of: -- 100% in Stavropolnefteprodukt public company; -- 26.26% in Kubanenergo, Kubanenergosbyt, Kuban Generating Company and Kubanskiye Magistralnyye Seti public companies; -- 100% stake in OOO Val Shatskogo; -- 51% stake in the OOO Yu-Kuban; and -- a promissory note of Stavropolnefteprodukt with a face value of R1.16 million.] OAO Lukoil representative Dmitry Dolgov denied speculations that Promregion is linked to the company. In a TCR-Europe report on May 2, Lukoil vice president Leonid Fedun earlier said it will not participate in the remaining auctions for Yukos' bankrupt assets noting that the latter's main assets have already been "practically distributed". 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 ========= ANIXTER INTERNATIONAL: Earns US$53.6 Million in First Quarter ------------------------------------------------------------- Anixter International Inc. reported results for the quarter ended March 30, 2007. First Quarter Highlights * Sales of US$1.33 billion, including US$33.6 million from the acquisitions of IMS, Inc. in May 2006 and MFU Holdings S.p.A. in October 2006, rose 24% compared to sales of US$1.07 billion in the year ago quarter. * Quarterly operating income of US$90.4 million reflected a 52% increase from the US$59.6 million reported in the first quarter of 2006. * Net income in the quarter, inclusive of income of US$3.4 million primarily related to the settlement of certain income tax audits, increased 71%, to US$53.6 million, from US$31.3 million, in last year's first quarter. * Cash flow from operations was US$65.8 million as compared to US$12.9 million in the year ago quarter. As of March 31, 2007, the company had total assets of US$2.7 billion and total liabilities of US$1.8 billion, resulting in a total stockholders' equity of US$859.8 million. Robert Grubbs, president and chief executive officer, stated, "We are pleased to note that the same trends that drove record performance in 2006 have remained largely intact through the first few months of the new year. At this time, all indications are that these trends will continue for the next few quarters. Assuming strong market conditions and continued success in our ongoing initiatives to expand our business, we should be in a position to have another very good year." Cash Flow and Leverage "In the first quarter we generated cash from operations of US$65.8 million as compared to US$12.9 million in the year ago quarter," said Dennis Letham, senior vice president of finance. "In anticipation of continued positive cash flow and in order to improve the effectiveness of our capital structure, we completed two important capital structure transactions during the quarter. We repurchased a total of 3 million shares, or approximately 7.6% of our outstanding shares, at an average price of US$54.23 per share. To finance this repurchase the Company sold US$300 million, principal amount, of 1% Convertible Senior Notes, that mature in 2013." "As a result of these capital structure transactions our debt- to-total capital ratio at the end of the first quarter has increased to 52.5% as compared to 45.7% at the end of 2006. For the first quarter our weighted-average cost of borrowed capital was 4.8%, however, compared to 5.2% in the year ago quarter. At the end of the first quarter, 80% of our total borrowings of US$950.9 million were fixed, either by the terms of the borrowing agreements or through hedging arrangements. We also had US$233.3 million of available, unused credit facilities at March 30, 2007, which provides us with the resources to support continued strong organic growth and to pursue other strategic alternatives, such as acquisitions, in the coming quarters." Full-text copies of the company's first quarter 2007 report are available for free at http://ResearchArchives.com/t/s?1f2f Business Outlook Mr. Grubbs concluded, "2007 is off to a good start as most of the same underlying trends that generated record performance in 2006 continue to drive the business. If the underlying market fundamentals remain healthy and we continue to make solid progress on our strategic initiatives to build our security and OEM business, add to our supply chain services offering, expand the geographic presence of our electrical wire & cable business, and expand our product offering, 2007 has the potential to be another very strong year." "As we move into the next three quarters of 2007, we will be measuring our progress against three comparatively stronger quarters of performance that will have the effect of slowing the year-over-year reported rates of sales and earnings growth. Nonetheless, we believe that the current market conditions will allow us to continue growing organic sales in line with our stated goal of 8% to 12%. It is our expectation that sales growth at these rates will enable us to continue achieving better operating leverage over time." About Anixter Anixter International Inc. (NYSE: AXE) -- http://www.anixter.com/-- through its subsidiaries, distributes communications and specialty wire and cable products, fasteners, and small parts in the United States and internationally. Its communications products include voice, data, video, and security products used to connect personal computers, peripheral equipment, mainframe equipment, security equipment, and various networks to each other. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5 million square feet of space. It has operations in Latin American countries including Mexico, Costa Rica, Brazil and Chile. Its Asia-Pacific operations are located in Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. It also operates in Europe, particularly in Spain, France and the United Kingdom. * * * Anixter International Inc. carries Moody's Investors Service's Ba2 corporate family rating. Anixter Inc.'s US$200 million guaranteed senior unsecured notes and its 3.25% LYON's notes carry Moody's Ba1 and B1 ratings, respectively. The rating outlook is stable. Anixter International Inc. carries Fitch's 'BB+' Issuer Default, senior unsecured notes and senior unsecured bank credit facility Ratings. Similarly, Anixter Inc. carries Fitch's 'BB+' issuer default rating and 'BB-' senior unsecured debt rating. Fitch's action affects about US$700 million of public debt securities. The rating outlook is stable. CONSUMO BANCAJA: Fitch Affirms CCC Rating on EUR12.9 Mil. Notes --------------------------------------------------------------- Fitch Ratings has affirmed Consumo Bancaja 1 - Fondo de Titulizacion de Activos' floating-rate notes as: -- EUR566.1 million Series A at 'AAA'; -- EUR14.7 million Class B at 'AA'; -- EUR19.2 million Class C at 'A-' and -- EUR12.9 million Class D at 'CCC'. Consumo Bancaja 1 is a true-sale securitization of a pool of consumer and auto loans originated in Spain by Caja de Ahorros de Valencia, Castellon y Alicante. Consumo Bancaja 1 issued EUR600 million of collateralized notes and EUR12.9 million of uncollateralized notes. The proceeds of the notes have been used to acquire a portfolio with an outstanding balance of EUR600 million at closing and to fund the reserve fund. The overall performance of Consumo Bancaja 1 to date is satisfactory compared with Fitch's base case expectations. The delinquency ratio has been low since inception. There have been no defaulted receivables reported and there is enough excess spread in the structure. Fitch expects the stable trend in performance to continue based on the history of its performance parameters. Fitch will continue to monitor this transaction. INFOR GLOBAL: Workbrain Purchase Cues S&P to Hold B- Rating ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating and its stable outlook on Alpharetta, Georgia- based Infor Global Solutions Holdings Ltd. At the same time, Standard & Poor's affirmed its 'B-' bank loan and '2' recovery ratings on Infor's approximately US$2.85 billion first-lien senior secured bank facility (including the proposed US$55 million term loan add-on). Standard & Poor's also affirmed its 'CCC' bank loan and '5' recovery ratings on Infor's nearly US$1.6 billion second-lien senior secured term loan (including the proposed US$170 million add-on). The ratings affirmations follow recent announcements that Infor will acquire Workbrain Corporation, a leading global provider of workforce management software, and Hansen Information Technologies, a leading supplier of software applications to manage government operations. The proposed add-on term loans will partially fund the acquisitions. "While these acquisitions introduce additional integration risk following recent very aggressive acquisition activity (and a US$500 million, debt-financed dividend to shareholders), Infor's financial profile, including operating lease-adjusted total debt to EBITDA estimated to be in the mid-8x area, on a GAAP basis, is only modestly affected by this transaction," said Standard & Poor's credit analyst Ben Bubeck. "Furthermore, our expectation for positive free operating cash flow generation in future periods, along with potential strategic benefits from a strengthened human capital management product extension and an expanded vertical end market, support our 'B-' corporate credit rating," he continued. The ratings reflect Infor's limited track record following a very aggressive acquisition strategy, its high debt leverage, and an aggressive financial policy. These factors are only partially offset by the company's leading presence in its selected mid-market niche, a largely recurring revenue base, and a broad and diverse customer base. About Infor Global Infor Global Solutions Holdings Ltd., -- http://www.infor.com/ -- headquartered in Alpharetta, Georgia and a Cayman Islands exempted company, is a global provider of financial and enterprise applications software. The Company operates in Asia- Pacific countries including Japan, China, India and Singapore. Its European operation encompasses Austria, France and Spain. It has also has facilities in Mexico in the Latin-American region. U.S. STEEL: S&P Rates US$900 Million Notes Offering at BB+ ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' senior unsecured rating to the proposed offering of US$900 million in senior unsecured notes of United States Steel Corp. These notes, which will be issued in 6-, 10- and 30-year tranches, are being issued under the company's unlimited shelf registration filed on March 6, 2007. Proceeds from the issuance are expected to be used to refinance existing debt and to partially fund the acquisition of Lone Star Technologies Inc. Pro forma for this financing and other related financings associated with the Lone Star transaction, U.S. Steel will have about US$3.6 billion in debt adjusted for operating leases and postretirement obligations. Ratings on U.S. Steel reflect the integrated steel producer's capital-intensive operations, exposure to highly cyclical and competitive markets, increased input costs, a high degree of operating leverage and aggressive financial leverage, including underfunded postretirement benefit obligations. Ratings also reflect the company's good liquidity, value-added product mix, good scope and breadth of product and operations, and benefits from its backward integration into iron ore and coke production. Ratings List United States Steel Corp. Corporate Credit Rating BB+/Stable/-- US$900 mil Sr Unscrd Nts BB+ About U.S. Steel Headquartered in Pittsburgh, Pennsylvania, United States Steel Corporation (NYSE: X) -- http://www.ussteel.com/-- manufactures a wide variety of steel sheet, tubular and tin products; coke, and taconite pellets; and has a worldwide annual raw steel capability of 26.8 million net tons. U. S. Steel's domestic primary steel operations are: Gary Works in Gary, Ind.; Great Lakes Works in Ecorse and River Rouge, Mich.; Mon Valley Works, which includes the Edgar Thomson and Irvin plants, near Pittsburgh and Fairless Works near Philadelphia, Pa.; Granite City Works in Granite City, Ill.; Fairfield Works near Birmingham, Ala.; Midwest Plant in Portage, Ind.; and East Chicago Tin in East Chicago, Ind. The company also operates two seamless tubular mills, Lorain Tubular Operations in Lorain, Ohio; and Fairfield Tubular Operations near Birmingham, Ala. U. S. Steel produces coke at Clairton Works near Pittsburgh, at Gary Works and Granite City Works. On Northern Minnesota's Mesabi Iron Range, U. S. Steel's iron ore mining and taconite pellet operations, Minnesota Taconite (Minntac) and Keewatin Taconite (Keetac), support the steelmaking effort, and its subsidiary ProCoil Company provides steel distribution and processing services. U.S. Steel's steelmaking subsidiaries U.S. Steel Kosice, s.r.o., in Kosice, Slovakia and U.S. Steel Serbia, d.o.o, in Sabac and Smederevo, Serbia. Acero Prime, the company's joint venture with Feralloy Mexico, S.R.L. de C.V. and Intacero de Mexico, S.A. de C.V., provides Mexico's automotive and appliance manufacturers with total supply chain management services through its slitting and warehousing facility in San Luis Potosi and its warehouse in Ramos Arizpe. ===================== S W I T Z E R L A N D ===================== BIZIM MARKET: Creditors' Liquidation Claims Due May 29 ------------------------------------------------------ Creditors of LLC Bizim Market have until May 29 to submit their claims to: Aysegul Dursun Liquidator Schweighofstr. 1 8045 Zurich Switzerland The Debtor can be reached at: LLC Bizim Market Winterthur ZH Switzerland BLUE JEANS: Creditors' Liquidation Claims Due May 30 ---------------------------------------------------- Creditors of LLC Blue Jeans World have until May 30 to submit their claims to: Ahmet Agac Liquidator Eisenweg 4 5210 Windisch Brugg AG Switzerland The Debtor can be reached at: LLC Blue Jeans World Lenzburg AG Switzerland BRUMA HANDELS: Bern Court Starts Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Bern commenced bankruptcy proceedings against LLC Bruma Handels on March 19. The Bankruptcy Service of Bern can be reached at: Bankruptcy Service of Bern Office Wangen an der Aare 3380 Wangen an der Aare BE Switzerland The Debtor can be reached at: LLC Bruma Handels Vorstadt 30a 3380 Wangen an der Aare BE Switzerland BUCHHANDLUNG TAT: Creditors' Liquidation Claims Due May 30 ---------------------------------------------------------- Creditors of LLC Buchhandlung Tat Und Rat have until May 30 to submit their claims to: Patrick Borter Liquidator Bibersteinerstrasse 21 5022 Rombach Switzerland The Debtor can be reached at: LLC Buchhandlung Tat Und Rat Zurich Switzerland CHRISTENSEN CONSULTING: Creditors' Liquidation Claims Due May 31 ---------------------------------------------------------------- Creditors of LLC Christensen Consulting have until May 31 to submit their claims to: Helmut Roth Liquidator Bruggerstrasse 9F 5103 Wildegg Lenzburg AG Switzerland The Debtor can be reached at: LLC Christensen Consulting Moriken-Wildegg Lenzburg AG Switzerland CIDARIS CONSULTING: Creditors' Liquidation Claims Due May 31 ------------------------------------------------------------ Creditors of LLC Cidaris consulting have until May 31 to submit their claims to: JSC Audita Treuhand & Wirtschaftsprufung Liquidator Zwinglistrasse 41 9000 St.Gallen Switzerland The Debtor can be reached at: LLC Cidaris consulting Zug Switzerland DEULEN JSC: Creditors' Liquidation Claims Due May 30 ---------------------------------------------------- Creditors of JSC Deulen have until May 30 to submit their claims to: Roland Deutsch Liquidator Gartenstrasse 20 4332 Stein AG Switzerland The Debtor can be reached at: JSC Deulen Stein AG Switzerland NILORN SWITZERLAND: Creditors' Liquidation Claims Due May 30 ------------------------------------------------------------ Creditors of JSC Nilorn Switzerland have until May 30 to submit their claims to: Luciana Iovanna Liquidator Reiherweg 2 5034 Suhr Aarau AG Switzerland The Debtor can be reached at: JSC Nilorn Switzerland Suhr Aarau AG Switzerland SIS SEGAINTERSETTLE: Moody's Holds Low B Rating on Merger News -------------------------------------------------------------- Moody's Investors Service affirmed the ratings of SIS SegaInterSetlle A.G. and SIS x-clear A.G., both at Aa1/P-1/B+. The stable outlook on the ratings was also affirmed. The affirmation follows the announcement that SIS Swiss Financial Services Group A.G., the non-rated parent company of the two rated entities has signed a letter of intent to take part in a three-way merger with SWX Group (unrated) and Telekurs Group (unrated). Moody's notes the two rated entities will remain part of a group which provides essential services for the functioning of the Swiss financial center and will remain stand-alone companies with their own dedicated functions and financial accounts. Furthermore, while the exact composition of the ultimate shareholders of the combined group may differ from the current composition of the shareholders of SIS Swiss Financial Services Group A.G., share ownership will remain restricted to the same groupings -- specifically to the internationally active large banks, private banks, cantonal banks and regional banks domiciled in Switzerland. These ultimate owners, as users dependent on the services provided, can be deemed to be committed shareholders. Moody's added that given the ownership structure of the proposed combined company and the critical role SIS SegaInterSettle A.G. and SIS x-clear A.G. will continue to have for the Swiss financial center, the ratings would continue to incorporate a very high probability of systemic support. At the same time, Moody's indicated that the Bank Financial Strength Ratings of SIS SegaInterSettle A.G. and SIS x-clear A.G. remained unchanged as, in its view, the potential risks related to the execution of a three-way merger would be offset by the importance of the merger as s competitive response. Execution risk is a consideration in this merger as in most cases -- specifically for these entities the risk relates to the two rated entities having outsourced important parts of their information technology to a part of their current parent group that would be more directly affected by the proposed merger. However, it is also recognized that improvements in scale and scope can help provide a better response to increasing demands placed on technical infrastructure. Thus the proposed merger may, in Moody's view, better address the more intense competitive challenges faced by SIS SegaInterSettle in the provision of central securities depository and custodian services and by SIS x-clear in delivering the roles of central counterparty and clearing house. Headquartered in Olten, Switzerland, SIS SegaInterSettle A.G., had total assets of CHF1450 million and shareholder's funds of CHF78 million as at Dec. 31, 2006. The BFSR of B+ assigned by Moody's reflects its strong franchise as the National Central Securities Depository of Switzerland, and its position of one of three International Central Securities Depositories in Europe. SIS x-clear A.G., based in Zurich, Switzerland, had total assets of CHF50 million and shareholder's funds of CHF33 million as at Dec. 31, 2006. The BFSR of B+ assigned by Moody's reflects its strong franchise as Swiss Central Counterparty and as a support of the U.K. exchange activities of virt-x. SMC CONSULTING: Creditors' Liquidation Claims Due May 31 -------------------------------------------------------- Creditors of LLC SMC Consulting have until May 31 to submit their claims to: Sebastian Chamakalayil Liquidator Oberwilerstr. 3 4103 Bottmingen Arlesheim BL Switzerland The Debtor can be reached at: LLC SMC Consulting Bottmingen Arlesheim BL Switzerland STAUDT ISOLIERTECHNIK: Creditors' Liquidation Claims Due May 31 --------------------------------------------------------------- Creditors of JSC Staudt Isoliertechnik have until May 31 to submit their claims to: Belchenstrasse 7 4054 Basel BS Switzerland The Debtor can be reached at: JSC Staudt Isoliertechnik Basel BS Switzerland ============= U K R A I N E ============= ENERGY INDUSTRIAL: Creditors Must File Claims by May 24 ------------------------------------------------------- Creditors of LLC Energy Industrial Delivery (code EDRPOU 31991471) have until May 24 to submit written proofs of claim to: Vasily Redko Liquidator Mayakovsky Avenue 69-a 02232 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 24/247-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Energy Industrial Delivery Schors Str. 29 01133 Kiev Ukraine FLETCHER STUFF: Creditors Must File Claims by May 24 ---------------------------------------------------- Creditors of LLC Fletcher Stuff (code EDRPOU 33238747) have until May 24 to submit written proofs of claim to: LLC Tomatna Kraina Liquidator Pobeda Avenue 136 03115 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/117-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Fletcher Stuff Pobeda Avenue 136 03115 Kiev Ukraine FORTEX-2004: Creditors Must File Claims by May 24 ------------------------------------------------- Creditors of LLC Fortex-2004 (code EDRPOU 32984821) have until May 24 to submit written proofs of claim to: Sergey Benediuk Liquidator P.O. Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/137-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Fortex-2004 Pilipovsky Lane 4 04050 Kiev Ukraine GRINTSEVO AGRICULTURAL: Claims Filing Bar Date Set May 23 --------------------------------------------------------- Creditors of Grintsevo Agricultural LLC (code EDRPOU 03777077) have until May 23 to submit written proofs of claim to: Gennady Sidorenko Temporary Insolvency Manager 1st Uritsky Lane Romny 42000 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 8/106-07. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: Grintsevo Agricultural LLC Grintsevo Lebedinsky District 42223 Sumy Ukraine INDUSTRIAL KITTING-C: Creditors Must File Claims by May 24 ---------------------------------------------------------- Creditors of LLC Industrial Kitting-C (code EDRPOU 33754731) have until May 24 to submit written proofs of claim to: O. Zabrodin Liquidator P.O. Box 6335 69121 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 25/104/07. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Industrial Kitting-C Pushkin Str. 4/133 69095 Zaporozhje Ukraine INDUSTRIAL TERMINAL: Creditors Must File Claims by May 24 --------------------------------------------------------- Creditors of LLC Industrial Terminal - Poltava (code EDRPOU 34502764) have until May 24 to submit written proofs of claim to: Eugene Shtepenko Liquidator Independency Square 1B, ap.12 Poltava Ukraine The Economic Court of Poltava commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 18/19. The Court is located at: The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Industrial Terminal - Poltava Krasnoflotskaya Str. 35 Poltava Ukraine INTEX SERVICE: Creditors Must File Claims by May 24 --------------------------------------------------- Creditors of LLC Intex Service (code EDRPOU 33152576) have until May 24 to submit written proofs of claim to: LLC Tradetechnology Liquidator Patrice Lumumba Str. 15-A 01042 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/126-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Tradetechnology Kikvidze Str. 13 01103 Kiev Ukraine PRODUCTS DELIVERY: Creditors Must File Claims by May 24 ------------------------------------------------------- Creditors of LLC Products Delivery and Sale (code EDRPOU 24641028) have until May 24 to submit written proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 42/222b. The Debtor can be reached at: LLC Products Delivery and Sale Shosseynaya Str. 101 Torez 86600 Donetsk Ukraine RUBANKA LLC: Creditors Must File Claims by May 23 ------------------------------------------------- Creditors of Rubanka LLC (code EDRPOU 30864471) have until May 23 to submit written proofs of claim to: Gennady Sidorenko Liquidator 1st Uritsky Lane Romny 42000 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/550-06. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: Rubanka LLC Rubanka Nedrygaylovsky District 42144 Sumy Ukraine TECHNICAL TRADE: Creditors Must File Claims by May 24 ----------------------------------------------------- Creditors of LLC Technical Trade Building Committee (code EDRPOU 33777523) have until May 24 to submit written proofs of claim to: Sergey Benediuk Liquidator P.O. Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/136-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Technical Trade Building Committee Zabolotny Str. 24 03187 Kiev Ukraine UKRAINIAN INTERNATIONAL: Fitch Rates US$125 Mln. Bonds at B- ------------------------------------------------------------ Fitch Ratings has assigned Standard Bank Plc's US$125 million issue of 9.75% loan participation notes due February 2010 final ratings of Long-term 'B-' and Recovery 'RR4'. The notes are issued for the sole purpose of financing a loan to First Ukrainian International Bank, rated Issuer Default 'B-', Short-term 'B', Individual 'D', Support '5' and National Long- term 'BBB(ukr).' The Outlooks on both the Issuer Default and the National Long-term ratings are Stable. The new notes are to consolidate and form a single series with Standard Bank Plc's US$150 million issue of 9.75% LPNs due February 2010. FUIB was the 13th largest bank in Ukraine by assets, according to first quarter 2007 data. Historically a corporate bank, FUIB's strategy is to expand its retail and SME lending. The bank is 99% owned by SCM Finance, the financial sub-holding of SCM, which is among the largest business groups in Ukraine. Rinat Akhmetov, a leading Ukrainian businessman, ultimately controls SCM. SCM also owns Donetsk-based Donghorbank, a medium-sized bank, which services SCM's cash flows and two insurance companies. =========================== U N I T E D K I N G D O M =========================== ADVANSTAR COMMS: Veronis Acquisition Cues Moody's Junk Rating ------------------------------------------------------------- Moody's Investors Service has assigned a B3 Corporate Family rating to VSS-AHC Acquisition Corp., in connection with the proposed acquisition of Advanstar Communications by Veronis Suhler Stevenson, Citigroup Private Equity and New York Life Capital Partners. VSS-AHC is an acquisition vehicle owned by the equity sponsor group and will be merged into Advanstar Holdings Corp. at closing. Advanstar Holdings Corp. will survive the merger and become the borrower upon the closing of the acquisition. The rating outlook is positive. This concludes the review for possible downgrade which was initiated on March 30, 2007, following the company's announcement that it had entered into a definitive agreement to be acquired by an investor group led by Veronis Suhler Stevenson in a transaction valued at approximately $1.1 billion. The B3 CFR reflects Advanstar's high leverage (closing total debt at around 8.8 times LTM March 31, 2007 EBITDA, reducing to high 7 times EBITDA by the end of 2007, calculated in accordance with Moody's standard adjustments); its vulnerability to B-2-B advertising spending; and the competition faced by many of its product offerings. Ratings are supported by the barriers to entry enjoyed by: -- Advanstar's niche trade shows and publications; -- the defensible market position and reputation of its leading trade show (MAGIC); -- the company's sustained top line growth; -- the attractive margins of its portfolio of assets (especially those of its trade shows); and -- the significant amount of cash common equity being contributed by the equity sponsors. The positive outlook reflects Moody's expectation that the company's free cash flow growth (assisted by the recapitalization) and debt reduction will lead to a reduction of leverage. Ratings assigned: * VSS-AHC Acquisition Corp. -- $75 million senior secured first lien revolving credit facility due 2013 -- B1, LGD2, 29% -- $515 million senior secured first lien term loan due 2014: B1, LGD2, 29% -- $245 million senior secured second lien term loan due 2014: Caa2, LGD5, 80% -- Corporate Family Rating: B3 -- Probability of default rating: B3 Ratings confirmed, subject to withdrawal at closing: * Advanstar Communications, Inc. -- senior secured first lien revolving credit facility: Ba3 -- second priority senior secured notes: B1 -- senior subordinated notes: Caa1 -- Corporate Family Rating: B3 -- Probability of default rating: B3 The assigned ratings are subject to Moody's review of documentation. Headquartered in Woodland Hills, California, Advanstar Holdings Corp. is a leading provider of integrated marketing solutions for the fashion and licensing, power sports and automotive and life sciences segments. For the last twelve months ended March 31 2007, the company recorded sales of $328 million. Advanstar has roughly 1,000 employees and currently operates from multiple offices in North America and in the United Kingdom. ALBANY BUILDING: Brings In Administrators from Ernst & Young ------------------------------------------------------------ R. H. Kelly and C. G. J. King of Ernst & Young LLP were appointed joint administrators of The Albany Building Ltd. (Company Number 04309897) on May 2. Ernst & Young -- http://www.ey.com/-- provides broad array of services relating to audit and risk-related services, tax, and transactions across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. Headquartered in Liverpool, England, The Albany Building Ltd. is engaged in property development. AMF BOWLING: Moody's Junks Proposed Sr. Sec. Credit Facilities -------------------------------------------------------------- Moody's Investors Service assigned Ba3 and Caa1 ratings respectively to the proposed first and second lien senior secured credit facilities of AMF Bowling Worldwide, Inc. Concurrently, Moody's affirmed the B2 Corporate Family and Probability of Default Ratings of the company. The outlook for the ratings is stable. The proceeds will be used to refinance existing indebtedness including approximately $124 million 10% senior subordinated notes due 2010, pay a dividend to shareholders and, also, pay fees and expenses associated with the transaction. The 10% senior subordinated notes became callable on March 1, 2007, at 105% of par. The proposed facilities provide for an uncommitted incremental first lien loan of $50 million (not rated). The ratings reflect the high leverage with debt to EBITDA of 5.6 times as adjusted for operating leases, declining league bowling activity, high fixed costs and increased reliance for growth on sales of food and beverages. The ratings also reflect Moody's expectations of continuing negative free cash flow generation, net of both maintenance and growth capital expenditures. The ratings are also constrained by the cyclicality inherent in consumer spending on leisure and entertainment, the company's dependence on the popularity of bowling, and the seasonality of league bowling revenues. Moody's expectation of adjusted pro forma EBITDA to interest coverage of 2.8 times and adjusted EBIT to interest of 1.3 for fiscal 2007 is within Moody's expectations for the B2 Corporate Family Rating. The ratings also recognize the benefits of exiting the products business in late 2005, the resulting focus on bowling operations and the company's renewed emphasis on providing a differentiated consumer experience. The ratings also benefit from positive volume and revenue per game trends in both open play bowling and food and beverage sales and recognize substantial progress in segmenting AMF's service offerings. Over the last two years, the company has implemented a differentiated strategy for higher potential (and higher margin) centers and an operational excellence strategy for lower potential centers and has demonstrated a positive trend in improving return on assets. Pro forma for the transaction, Moody's expects the company to be profitable in fiscal 2007. The stable outlook incorporates the expectation of continuing improvements in asset utilization and increased revenue growth. Several consecutive quarters of strong financial results, notably much improved sustainable free cash flow relative to total debt exceeding 5%, combined with reduced debt-to-EBITDA leverage, would be needed before the ratings outlook could be considered for a change to positive. Sustainable EBITDA to interest coverage above three times, and EBIT to interest coverage above 1.5 times, would also support positive ratings momentum. Moody's took these rating actions: -- Assigned a Ba3 (LGD 2, 29%) to the proposed $60 million first lien revolver due 2012; -- Assigned a Ba3 (LGD 2, 29%) to the proposed $210 million first lien term loan due 2013; -- Assigned a Caa1 (LGD 5, 79%) rating to the proposed $105 million second lien term loan due 2013; -- Affirmed the Ba2 (LGD 2, 16%) rating on the existing $40 million senior secured revolver, subject to withdrawal upon completion of the proposed refinancing; -- Affirmed the Ba2 (LGD 2, 16%) rating on the existing $47 million senior secured term loan due 2009, subject to withdrawal upon completion of the proposed refinancing; -- Affirmed the B3 (LGD 5, 72%) rating on the existing $124 million 10% subordinated notes due 2010, subject to withdrawal upon completion of the proposed refinancing; -- Affirmed the B2 Probability of Default Rating; and -- Affirmed the B2 Corporate Family Rating. The outlook for the ratings is stable. Headquartered in Richmond, Virginia, AMF Bowling Worldwide, Inc. is the largest operator of bowling centers in the world with 358 centers in operation as of December 31, 2006, including 13 centers outside the US. Since October 8, 2005, the company has two reportable business segments, namely: i) the operation of bowling centers; and ii) "Holdings", which has an interest in a joint venture that manufactures and sells bowling equipment, and a service company that provides services exclusively to that business. AMF is owned by a subsidiary of Kingpin Holdings LLC, which is owned by a fund managed by Code Hennessy & Simmons LLC and other equity investors. AMF had revenues of about $458 million for the twelve months ended April 1, 2007. AMF Bowling Products UK Limited is the company's subsidiary in the United Kingdom. AMF BOWLING: S&P Rates US$270 Million Facilities at B+ ------------------------------------------------------ Standard & Poor's Rating Services affirmed its 'B' corporate credit rating on AMF Bowling Worldwide Inc. At the same time, S&P assigned a bank loan rating of 'B+', one notch above the corporate credit rating on the company, to AMF's proposed US$270 million first-lien credit facilities. The recovery rating is '1', indicating the expectation for full recovery of principal in the event of a payment default. The first-lien credit facilities consist of a US$60 million revolving credit facility due 2012 and a US$210 million term loan B due 2013. S&P also assigned a 'CCC' bank loan rating, two notches below the corporate credit rating on AMF, to the company's proposed US$105 million second-lien term loan due 2013. The recovery rating is '5', indicating the expectation for negligible (0%-25%) recovery of principal in the event of a payment default. Proceeds from the transaction will be used to repay existing debt and fund a special dividend to the company's equity sponsor, Code Hennessy & Simmons LLC. The outlook is negative. The ratings on Mechanicsville, Virginia-based AMF reflect weak bowling industry fundamentals, an aggressive financial policy, and high capital spending over the intermediate term. These are only minimally offset by AMF's scale. AMF is the largest operator of bowling centers in the U.S. with 345 domestic centers. Pro forma for the transaction, the company will have total debt outstanding of US$315 million. "It remains to be seen whether gains in recreational bowling revenue will continue to offset league bowling's secular decline," said Standard & Poor credit analyst Andy Liu. AMF Bowling Centers, Inc. -- http://www.amf.com/-- owns and operates bowling centers. The company has 345 centers in the U.S. and 13 bowling centers operating outside the U.S. The company also has an investment in a business that manufactures and sells bowling equipment. AMF Bowling Products UK Limited, the company's subsidiary, is located in the United Kingdom. AUTOPUMPS INTERNATIONAL: Taps Begbies Traynor as Administrators --------------------------------------------------------------- Gary Norton Lee and Donald Bailey of Begbies Traynor were appointed joint administrators of Autopumps International Ltd. (Company Number 03462338) on May 4. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Autopumps International Ltd. 31 Kingsland Grange Woolston Warrington WA1 4RW England Tel: 01925 817 770 BIG DISPLAY: Claims Filing Period Ends August 31 ------------------------------------------------ Creditors of Big Display Ltd. (formerly Barton House (No 45) Ltd.) have until Aug. 31 to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any) to: A. R. Marlor Liquidator Marlor Walls C12 Marquis Court Marquis Way Team Valley Gateshead NE11 0RU England A. R. Marlor of Marlor Walls was appointed liquidator of the company May 8 by resolutions of members and creditors. BRETT ESSEX: Creditors' Meeting Slated for May 30 ------------------------------------------------- Creditors of The Brett Essex Golf Club Ltd. (t/a Warley Park Golf Club) (Company Number 01121846) will meet at 11:30 a.m. on May 30 at: 67 Butts Green Road Hornchurch Essex RM11 2JX England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on May 29 at: J. S. French and G. Mummery Joint Administrators Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex RM11 2JX England Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. COLLINS & AIKMAN: Canadian Unit Files for CCAA Protection --------------------------------------------------------- Collins & Aikman Corporation disclosed that its Canadian Soft Trim operations applied for creditor protection under the Companies' Creditors Arrangement Act (Canada) in the Ontario Superior Court of Justice. The company's Canadian Soft Trim operations are comprised of Collins & Aikman Holdings Canada Inc. and Collins & Aikman Canada Inc. The CCAA filing for Collins & Aikman's Canadian Soft Trim operations is a necessary step in finalizing the previously announced sale of its Soft Trim business unit to International Automotive Components Group North America Inc. "This CCAA filing is intended to facilitate efforts to finalize our proposed Soft Trim sale to IAC NA," said John Boken, Collins & Aikman's Chief Restructuring Officer. "We expect to work closely with IAC NA, our customers, suppliers and employees, as well as the US and Canadian courts over the coming weeks to close the Soft Trim transaction. We look forward to completing this transition and giving our Soft Trim employees the opportunity to prosper under new ownership." The Soft Trim sale transaction approval hearing is scheduled for June 5, 2007. In connection with the filing, Collins & Aikman sought and obtained orders staying creditors and other third parties from terminating agreements with the companies or otherwise taking enforcement steps. Additionally, as part of the initial court order, Collins & Aikman Products Co. obtained an order under section 18.6 of the CCAA recognizing Products Co.'s Chapter 11 bankruptcy proceedings in the United States, which will provide Products Co. with a stay of proceedings in Canada. Collins & Aikman's Canadian Soft Trim entities will continue operations in the ordinary course during the CCAA proceedings under the leadership of their existing management team. Ernst & Young Inc. was appointed by the Court as the Monitor in the CCAA proceedings. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company operates in Latin America through its facilities in Mexico. The company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05- 55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. Plan Update On Aug. 30, 2006, the Debtors filed their chapter 11 plan and disclosure statement explaining that plan. On Dec. 22, 2006, they filed an amended chapter 11 plan and on Jan. 24, 2007, filed a modified chapter 11 plan. On Jan. 25, 2007, the Court approved the adequacy of the Debtors' amended disclosure statement. The confirmation hearing, originally set for April 19, 2007, has been adjourned to May 24, 2007. CONCARGO LTD: Appoints Joint Administrators from BDO Stoy --------------------------------------------------------- Simon Edward, Jex Gerling and Christopher Kim Rayment of BDP Stoy Hayward LLP were appointed joint administrators of Concargo Ltd. (Company Number 2521570) on May 3. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: Concargo Ltd. Unit 4 Oldmixon Crescent Weston Super Mare BS24 9AH England Tel: 01934 628 221 Fax: 01934 417 623 EUROTUNNEL GROUP: Eyes EUR4 Billion Debt Reduction Under Plan ------------------------------------------------------------- Eurotunnel Group's (aka Groupe Eurotunnel S.A.) safeguard plan envisages that following the implementation of the reorganization, the financial indebtedness of Eurotunnel will be reduced to EUR4.164 billion (excluding the nominal amount of the NRS, which will be treated as quasi-equity), representing a debt reduction of 54% from current indebtedness, which amounted to EUR9.073 billion on Sept. 30, 2006. Eurotunnel SA and Groupe Eurotunnel SA wished to bring to the attention of the public an update and some additional information on the Senior Facilities described in paragraph 5.3.4, or the financing of Eurotunnel Group, of the registration document. The six loan tranches, which constitute the Senior Facilities, are denominated either in euros or GBP with different maturity dates and amortization start dates depending on the basis on which interest is calculated for each tranche, described as: Financial Conditions of the Senior Facilities For the Tranches Denominated in GBP: -- a tranche A1 loan amounting to GBP750 million, bearing interest at a fixed rate linked to the U.K. All Items Retail Price Index inflation index as published by the United Kingdom Office for National Statistics; -- a tranche B1 loan amounting to GBP400 million, bearing interest at a fixed rate; and -- a tranche C1 loan, amounting to GBP350 million, bearing interest at a floating rate, which will be entirely hedged by a fixed/floating interest rate swap. Eurotunnel Finance Ltd. has already purchased interest rate swaptions providing protection against an increase in interest rates. The maximum rate payable by Eurotunnel Finance Ltd. at the time of drawdown of the loan guaranteed by these swaptions is around 6.6% to 6.7% per annum after taking into account the credit margin. The equivalent fixed rate at the time of drawdown of the loan will depend upon the prevailing rates and the expected inflation at the time the hedge is finalized. For the Tranches Denominated in Euros: -- a tranche A2 loan amounting to EUR367 million, bearing interest at a fixed rate linked to the indice des prix a la consommation hors tabac inflation index as published by l'Institut National de la Statistique et des Etudes Economiques; -- a tranche B2 loan amounting to EUR645 million, bearing interest at a fixed rate; and -- a tranche C2 loan, amounting to EUR953 million, bearing interest at a floating rate, which will be entirely hedged by a fixed/floating interest rate swap. France Manche SA has already purchased interest rate swaptions providing protection against an increase in interest rates: the maximum rate payable by France Manche S.A. at the time of drawdown of the loan guaranteed by these swaptions is around 6.4% to 6.5% per annum after taking into account the credit margin. The equivalent fixed rate at the time of drawdown of the loan will depend upon the prevailing rates and the expected inflation at the time the hedge is finalized. Repayment of the Senior Facilities The funds borrowed under the Senior Facilities will be repayable in accordance with their respective amortization schedules, of which the main characteristics reflect the discussions with the rating agencies, and are currently as follows: For the Tranches Denominated in GBP: -- repayment of the A1 tranche will begin on June 20, 2018, to end on June 20, 2042. Repayments will fall six monthly on June 20 and December 20. The A1 tranche has a loan weighted average life of between 25 and 26 years; -- repayment of the B1 tranche will begin on June 20, 2046, to end on June 20, 2046. Repayments will fall six monthly on June 20 and December 20. The B1 tranche has a loan weighted average life of between 29 and 30 years; and -- repayment of the C1 tranche will begin on June 20, 2046, to end on June 20, 2050. Repayments will fall six monthly on June 20 and December 20. The C1 tranche has a loan weighted average life of between 41 and 42 years. The repayment profile of the aggregate principal payments due in respect of the three tranches denominated in GBP (before taking into account inflation on Tranche A1) is close to a constant annuity. For the Tranches Denominated in Euros: -- repayment of the A2 tranche will begin on June 20, 2018, to end on June 20, 2041. Repayments will fall six monthly on June 20 and December 20. The A2 tranche has a loan weighted average life of between 24 and 25 years; -- repayment of the B2 tranche will begin on June 20, 2013, to end on June 20, 2041. Repayments will fall six monthly on June 20 and December 20. The B2 tranche has a loan weighted average life of between 22 and 23 years; and -- repayment of the C2 tranche will begin on June 20, 2041, to end on June 20, 2050. Repayments will fall six monthly on June 20 and December 20. The C2 tranche has a loan weighted average life and of between 39 and 40 years. The repayment profile of the aggregate principal payments due in respect of the three tranches denominated in euros, before taking into account inflation on Tranche A2, is close to a constant annuity. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel SA (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained on Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. FERRYSCOTT LTD: Brings In Administrators from Deloitte & Touche --------------------------------------------------------------- John Charles Reid and Brian William Milne of Deloitte & Touche LLP were appointed joint administrators of Ferryscott Ltd. (Company Number 06038022) on May 9. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. Headquartered in Glaslow, England, Ferryscott Ltd. is engaged in haulage. FORD MOTOR: Founding Family Members Deny Equity Sale Talks ---------------------------------------------------------- Ford Motor Co.'s founding family members denied the report that they were discussing the sale of the family's controlling stake in the automaker, Poornima Gupta of Reuters says. "The Ford family is not discussing the sale of its holdings in Ford Motor Company. Statements attributable to unnamed sources are untrue," Reuters cited David Hempstead, the family's attorney, as saying. An unnamed source told Reuters Monday that the Ford family met with representatives of an investment bank last month, but had not retained any firm to advise it on its controlling stake in the automaker. The family owns 71 million Class B shares and controls almost 40 percent of the voting power in the company. Moving on With "Way Forward" Plan Early this month, Ford disclosed that it intends to idle its Cleveland Casting Plant in 2009, as part of the company's Way Forward plan to transform its North American automotive business. In addition, the company said it will defer production at Cleveland Engine No. 1, beginning in two weeks, for approximately 12 months. The actions are in line with Ford's commitment to match its manufacturing capacity with actual customer demand, the company explained. Cleveland Casting opened in 1952 and employs 1,100 hourly and 118 salaried workers. It produces cast-iron components for engines for Ford F-Series Super Duty trucks, Ford E-Series vans and Ford Expedition and Lincoln Navigator SUVs. Production activities at Cleveland Engine No. 1 are being deferred for approximately one year to capitalize on production efficiencies at Ford's Lima Engine Plant, in Ohio, where the company now can produce all its Duratec 3.5-liter engines for the Ford Taurus passenger car and Taurus X crossover, as well as other models. Previously, Cleveland Engine No. 1 produced the Duratec 3.0- liter engine for prior models of the Ford Five Hundred passenger car and Freestyle crossover. If demand warrants, Ford said, production activities at Cleveland Engine No. 1 could resume earlier than the planned 12 months. Opened in 1951, Cleveland Engine Plant No. 1 currently employs 530 hourly and 47 salaried workers. When it returns to production, the plant is slated to produce the Duratec 3.5-liter engine and a variant for the Lincoln MKZ passenger car, Lincoln MKX crossover, Ford Taurus, Ford Taurus X, Ford Edge crossover and Mercury Sable passenger car. In addition, the plant will produce engines for two all-new vehicles, the Lincoln MKS passenger car and Ford Flex crossover. April 2007 U.S. Sales Ford's April U.S. sales totaled 228,623, down 13% compared with a year ago, the company said in a regulatory filing with the Securities and Exchange Commission. "With April behind us, we remain focused on getting the word out about the strength of our new products, and our marketing offensive is moving into high gear," said Mark Fields, Ford's President of The Americas. "Customers are responding very positively to our new 'Ford Challenge' ads that pit Ford vehicles against the best of the competition, so we're accelerating our plans." Currently, Ford said it began airing two new F-Series truck ads starring Mike Rowe, creator and star of the Discovery Channel's hit show "Dirty Jobs." The ads demonstrate the clear advantages of Ford Tough trucks in safety, strength and capability. Ford's internal data show that the Ford Challenge campaign has generated a strong response in product favorability, purchase consideration and sales. Following the start of the successful "Fusion Challenge" ads in January, the Ford Fusion posted double-digit sales increases throughout the first quarter. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. FORD MOTOR: Finance Arm Sells US$1.5-Billion Debt, Reuters Says --------------------------------------------------------------- Ford Motor Co.'s finance arm, Ford Motor Credit, sold Tuesday US$1.5 billion in a two-part debt sale, Reuters reports, citing market sources. According to Reuters, the offering was expected to include US$1 billion five-year notes yielding about 7.8 percent to 7.875 percent and US$500 million in a reopening of an existing five-year floating rate note with a coupon rate of about 275 to 280 basis points over the London interbank offered rate. Citigroup Global Markets Inc., J.P. Morgan and Lehman Brothers Inc. are the joint lead managers for the sale, the sources said. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. FORD MOTOR: High Ct. Wants Lower Courts to Review US$82.6M Award ---------------------------------------------------------------- The U.S. Supreme Court directed lower courts to review an US$82.6 million California court judgment against Ford Motor Co. relating to a sport utility vehicle rollover accident, Mark H. Anderson of The Wall Street Journal reports. The justices, WSJ says, want the judgment reconsidered in light of Supreme Court precedent from its recent Philip Morris punitive damages ruling, which said punitive damages cannot be used to punish companies for harm to parties not involved in the lawsuit. The judgment dates back to January 2002 when Benetta Buell- Wilson, while driving a Ford Explorer, got seriously injured after the vehicle flipped over 4-1/2 times, Greg Stohr of Bloomberg News relates. Subsequently, Ms. Buell-Wilson sued the company contending that the vehicle's design was prone to rollover accidents. Ms. Buell-Wilson got an initial US$357 million judgment but was eventually reduced to US$27.6 million in actual damages and US$55 million in punitive damages. Ford appealed the judgment to the Supreme Court arguing that the arbitrary imposition of punitive damages based on "vague and subjective standards is the root cause of the flood of huge verdicts." About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. G.P. TURNER: Appoints PwC as Joint Administrators ------------------------------------------------- Ian David Green and Graham Hunter Martin of PricewaterhouseCoopers LLP were appointed joint administrators of G.P. Turner Builders Ltd. (Company Number 04039717) on May 8. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory& nbsp;services to clients in a variety of industries. The company can be reached at: G P Turner Builders Ltd. 4 Central Place Haltwhistle NE49 0DF England Tel: 01434 321 000 GENERAL MOTORS: Mulls Sale of Midsize Truck Unit to Navistar ------------------------------------------------------------ General Motors Corp. is contemplating on the sale of its medium- duty truck business -- which primarily makes the Chevrolet Kodiak and GMC TopKick work trucks built in Flint, Michigan -- to Navistar International Corp., various reports say. GM and Navistar are still in discussion and declined to comment. However, analysts observe that the sale could potentially benefit GM as Navistar may acquire engineering resources and other assets needed to support the business. The action, various sources relate, is in harmony with the GM's restructuring, which includes cost cutting and job slashing and the sale of the Allison Transmission unit in Indianapolis. GM wants to focus on raising profit on the cars and light trucks operations, after Toyota Motor Corp. outperformed GM in sales worldwide last quarter. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the $1.5 billion secured term loan of General Motors Corp. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the $1.5 billion secured term loan of General Motors Corp. HOMEWORKS MIDLANDS: Names Roderick Graham Butcher Liquidator ------------------------------------------------------------ Roderick Graham Butcher of Butcher Woods was appointed liquidator of Homeworks (Midlands) Ltd. on May 9 for the creditors' voluntary winding-up proceeding. The company can be reached at: Homeworks (Midlands) Ltd. 2 Kendlewood Road Kidderminster DY10 2XQ England Tel: 01562 746 364 INT'L RECTIFIER: Reporting Delay Cues Fitch to Watch Ratings ------------------------------------------------------------ Fitch Ratings has placed International Rectifier Corp. (NYSE: IRF) on Rating Watch Negative following the company's announcement that it will not meet U.S. Securities and Exchange Commission financial reporting requirements due to an ongoing investigation into accounting irregularities relating to premature revenue recognition at one of IR's foreign subsidiaries. These ratings are placed on Rating Watch Negative: -- Issuer Default Rating of 'BB'; -- Senior secured bank credit facility rating of 'BB+'; -- Subordinated debt rating of 'BB-'. International Rectifier has disclosed that, as a result of accounting irregularities, the company's reported financial results for the preceding eight quarters and the fiscal years ended June 30, 2006, and June 30, 2005, are not reliable and may require restating. The accounting irregularities specifically related to unsubstantiated orders, resulted in recording sales with no associated customer obligations and shipping products to warehouses not in the company's logistical system. While these activities have been discontinued, the investigation into the extent of potential restatements of past operating results is ongoing. Pending the conclusion of the investigation, International Rectifier has obtained amendments to its credit facilities, pursuant to which the company will not be considered in default for failing to meet its reporting requirements or certain representations and warranties. Fitch anticipates resolving the Rating Watch upon International Rectifier concluding the investigation, quantifying the impact to its financial reports of the aforementioned relevant periods, and filing its 10Q for the fiscal third quarter ended March 31, 2007. Material restatements could result in negative rating actions. Fitch believes the company's ability to draw down on its US$150 million senior secured revolving credit facility expiring 2011 may be limited until financial reporting requirements have been met. Nonetheless, Fitch believes International Rectifier's liquidity position remains sufficient and supported by: i) approximately US$1.1 billion of cash and cash equivalents, including investments in securities with long-term maturities, and ii) approximately US$290 million of gross proceeds from the recent divestiture of its Power Systems Group. Fitch expects annual free cash flow will be limited over the next two years due to heightened capital spending. As of Dec. 31, 2006, total debt consisted of the US$550 million 4.25% convertible subordinated notes due July 2007, which Fitch believes will be repaid with available cash balances at maturity, and approximately US$88 million of foreign bank loans. Headquartered in El Segundo, California, 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. KLASS ACT: Creditors' Meeting Slated for May 22 ----------------------------------------------- Creditors of Klass Act Ltd. (t/a Kurt Muller) (Company Number 03824545) will meet at 11:00 p.m. on May 22 at: Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on May 21 at: Ian William Kings Administrator Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne and Wear SR5 3JN England Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. KRONOS INC: Moody's Junks US$390 Million Second Lien Term Loan -------------------------------------------------------------- Moody's Investors Service assigned Kronos, Inc. a first time B2 corporate family rating and a stable rating outlook. Moody's also assigned a first time Ba3 rating to the company's: -- first lien credit facilities (US$665 million term loan, due 2014, and US$60 million revolving credit facility, expires 2013); and -- a Caa1 rating to its US$390 million second lien term loan, due 2015. On March 23, 2007, Kronos signed a definitive agreement to be acquired by the private equity firm Hellman & Friedman Capital Partners VI, L.P. and its related funds in a transaction valued at approximately US$1.8 billion, of which approximately US$720 million of common equity will be funded by the equity sponsor. Under the terms of the agreement, Kronos shareholders will receive US$55.00 in cash for each share of Kronos common stock, representing a 34.4% premium over Kronos' pre-announcement share price. Kronos' Board of Directors voted and has approved the merger agreement. The transaction remains subject to the receipt of shareholder approval as well as the satisfaction of other closing conditions. The transaction is expected to close in Kronos' fiscal 2007 fourth quarter (corresponding to the third calendar quarter of 2007). Kronos' B2 rating reflects the company's leadership position in the workforce management software market, client diversity, modest pretax income, low asset returns, and high financial leverage. The company's high geographic concentration, high business line concentration, and good client diversity are similar to business services peers rated Ba3. At the same time, Kronos' overall size (as measured by pre tax income), profitability (as measured by return on assets) and financial leverage (as measured by ratios of debt to EBITDA and free cash flow to debt) are similar to B3 rated business services peers, contributing to the company's overall B2 corporate family rating. The stable outlook reflects Moody's expectation that the company will maintain market share and pricing power, contributing to a gradual reduction in its financial leverage over the next eighteen months. What Could Move the Rating Up Kronos' B2 rating could experience upward rating pressure if the company were to demonstrate consistent organic revenue and profit growth in the mid to high single digits and reduce its financial leverage such that its ratio of debt to EBITDA adjusted for leases was 5.0 times or less on a consistent basis. What Could Move the Rating Down Kronos' B2 rating could experience downward rating pressure if its revenues or operating profits were to decline on a twelve month basis, were there a substantial reduction in free cash flow such that acquisition spending exceeded free cash flow on an annual basis, or were there a large dividend distribution to its equity sponsors. Ratings assigned: -- Corporate Family Rating - B2 -- US$60 million revolving credit facility (due 2013): Ba3, LGD 3, 30% -- US$665 million first lien term loan (due 2014): Ba3, LGD 3, 30% -- US$390 million second lien term loan (due 2015: Caa1, LGD 5, 84% With about US$617 million of revenues for the twelve months ended March 31, 2007, Kronos, Inc., headquartered in Chelmsford, Massachusetts, is a provider of workforce management software, including time and attendance software and talent management (recruiting) software. Headquartered in Chelmsford, Mass., Kronos Inc. -- http://www.kronos.com/-- provides a suite of solutions that automate employee-centric processes, as well as tools to optimize the workforce. It provides workforce management software, including time and attendance software and talent management (recruiting) software. The company offers its products primarily in the United States, Canada, Mexico, the United Kingdom, Australia, and New Zealand. The company posted about US$617 million of revenues for the twelve months ended March 31, 2007. LAURENCE SCOTT: Brings In Administrators from Kroll --------------------------------------------------- Andrew John Pepper and Alastair Paul Beveridge of Kroll Ltd. were appointed joint administrators of Laurence, Scott & Electromotors Ltd. (Company Number 5272666) on May 8. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. The company can be reached at: Scott Laurence & Electromotors Ltd. Hardy Rd Norwich NR1 1JD England Tel: 01603 628 333 Fax: 01603 660 767 LEEDS UNITED: Creditors' Meeting Slated for June 1 -------------------------------------------------- The joint administrators of Leeds United Association Football Club Ltd., Richard Fleming, Mark Firmin and Howard Smith of KPMG LLP, advised creditors of the club that the creditors' meetings will be held at noon on June 1 at Leeds United. The initial meeting enables the administrators to fulfill their statutory duty to put their proposals for the administration to the creditors. The key activity at this meeting will be a vote to approve progressing the Company Voluntary Arrangement process. In anticipation of approval of this proposal, the administrators have scheduled a second creditors' meeting for 2:00 p.m. on the same day at which the CVA proposal to complete the sale of the Club to Leeds United Football Club Limited will be considered and is expected to be voted upon. "At this meeting I will outline the proposal to sell the Club to Leeds United Football Club Ltd. and will also inform the creditors of any other matters which could influence their decision; such as details of the level of interest from other potential buyers of the Club and indeed any alternative bids. Creditors will then be invited to vote on the proposal and any modifications that emerge," Richard Fleming disclosed. "The proposed sale enables the Club to survive and offers a minimal return to creditors. We know from preliminary discussions that the deal is supported by some of the larger creditors by value, however it still requires a majority of 75% to be approved," Mr. Fleming added. "If the proposal is carried, the CVA process will move forward, which will involve agreeing the Club's new ownership with the Football League and paying a dividend to creditors. If not, we will seek an alternative solution, and again request creditor approval," 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. LEVEL 3: European Group Inks Network Deal with Easynet ------------------------------------------------------ The European Markets Group of Level 3 Communications Inc. has expanded its relationship with Easynet, an international managed hosting and networks company. Level 3 will serve as the underlying bandwidth provider for Easynet's enterprise business infrastructure solutions throughout Europe. The expanded relationship positions Level 3 as a key strategic network partner for Easynet, a part of the British Sky Broadcasting group. Under the terms of this new multi-year agreement, Level 3 will deliver both 10GigE and 1GigE LAN PHY intercity and metropolitan wavelength services as part of Easynet's commitment to delivering superbly managed solutions to its international enterprise customers. The upgraded Level 3 network solution replaces the STM-4 network that has been in place since 2003. "How we work with partners is a real differentiator for Easynet," Easynet CEO David Rowe said. "Level 3 understands our key business drivers and can provide us with the reliable, scalable backbone solutions that support our commitment to providing an outstanding customer experience. We have enjoyed collaborating with Level 3 for a number of years and believe Level 3 has the network, service portfolio and expertise to help us meet our customers' strategic business objectives." "We are delighted to be expanding our relationship with Easynet, enabling them to continue to grow their business in key markets," Level 3 European Markets President and CEO Brady Rafuse said. "Level 3's network was designed specifically to support companies like Easynet, catering to the growing capacity requirements and increasing global reach they require to support their customer base. This agreement underscores the strength and quality of our network and services across Europe." With its 10GigE LAN PHY offering a dedicated Ethernet point-to- point service, Level 3 enables customers to leverage cost- effective and familiar Ethernet technology to build and grow large IP backbones. This service is available across the majority of Level 3's fiber-based network in Europe and the United States, including extensions to key metropolitan points of presence. Level 3 continues to invest in its network, and with one of the world's largest Internet backbones, the company provides reliable, high capacity bandwidth to meet growing demand from customers with rich media traffic. Level 3 offers connectivity in more than 175 key markets in Europe and North America, with metropolitan networks in 125 cities. The comprehensive suite of Level 3 network services deliver the building blocks for its customers' diverse service offerings. Level 3 has the scalability, performance, and service portfolio to support content delivery solutions as its customers' network needs evolve. About Level 3 Headquartered in Broomfield, Colorado, Level 3 Communications Inc. (Nasdaq: LVLT) -- http://www.level3.com/-- is an international communications company. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. As of December 31, 2006, the Company had approximately 73,000 intercity route miles in the United States and Europe, connecting 16 countries. In Europe, Level 3 maintains operations in the United Kingdom, France, Germany, Ireland, France and Switzerland. * * * As reported in the TCR-Europe on March 8, 2007, Standard & Poor's Ratings Services assigned a 'B' bank loan rating, one notch above the corporate credit rating, to Level 3 Financing Inc.'s proposed US$1.4 billion senior secured term loan due 2014. In February 2007, Moody's Investors Service has assigned a B1 rating to Level 3 Financing Inc.'s new US$1 billion term loan and a B3 rating to the US$1 billion fixed and floating rate notes at Financing. Moody's has affirmed Level 3 Communications, Inc.'s corporate family rating at Caa1 with a stable outlook, as the pro-forma leverage is expected to remain in the 8.5x range, as Moody's expects the company to use the additional liquidity to refinance higher coupon debt. Moody's has also affirmed the ratings of existing debt at Level 3. The existing debt at Financing was downgraded one notch to B3, given the increased debt level at that entity. Moody's will withdraw the ratings upon redemption of the existing 12 7/8% senior discount notes due 2010, which the company plans to call following the completion of the new notes offering. Moody's said the outlook is stable. At the same time, Fitch Ratings has assigned a 'B/RR1' rating to Level 3 Financing, Inc.'s US$1 billion offering of senior unsecured notes issued in a private offering in accordance with Securities and Exchange Commission Rule 144A. The offering consists of the following: -- US$300 million floating-rate senior notes due 2015; and -- US$700 million 8.75% senior notes due 2017. Level 3 Financing, Inc. is a wholly owned subsidiary of Level 3 Communications, Inc. Fitch has an Issuer Default Rating of 'CCC' for both Level 3 and level 3 Financing, Inc. Fitch said the Rating Outlook is Positive. MARIX DRUG: Hires Liquidator from Monahans ------------------------------------------ Paul Michael McConnell of Monahans was appointed liquidator of Marix Drug Development Ltd. on May 4 for the creditors' voluntary winding-up procedure. The company can be reached at: Marix Drug Development Ltd. Rhodfa Marics Ynysmaerdy Pontyclun CF72 8UX Wales Tel: 01443 234 400 MELROSE FINANCING: Moody's Rates Three Class D Notes at Ba2 ----------------------------------------------------------- Moody's Investors Service places under review for possible upgrade five classes of notes issued by Melrose Financing No 1 Plc: -- Series 2001-2 US$43,500,000 Class B Asset Backed Floating Rate Notes Due 2008, currently rated A1, -- Series 2001-2 US$32,600,000 Class C Asset Backed Floating Rate Notes Due 2008, currently rated Baa1, -- Series 2001-2 US$5,000,000 Class D1 Asset Backed Floating Rate Notes Due 2008, currently rated Ba2, -- Series 2001-2 EUR14,100,000 Class D2 Asset Backed Floating Rate Notes Due 2008, currently rated Ba2, -- Series 2001-2 GBP14,000,000 Class D3 Asset Backed Floating Rate Notes Due 2008, currently rated Ba2. This review for upgrade is the result of the accumulation of cash in anticipation of redemption on the scheduled maturity date. PISTOL MARKETING: Joint Liquidators Take Over Operations -------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss were appointed joint liquidators of Pistol Marketing Ltd. on May 8 for the creditors' voluntary winding-up proceeding. The company can be reached at: Pistol Marketing Ltd. London Maid House 11-13 Market Place City of Westminster London W1W 8AH England Tel: 020 7307 3555 Fax: 020 7494 4823 PREGIS CORP: S&P Lifts Rating on EUR100 Million Notes to B+ ----------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Pregis Corp.'s EUR100 million second-priority floating-rate notes due in 2013. The notes rating was raised to 'B+' from 'B-' and the recovery rating was revised to '1' from '3'. The new ratings indicate S&P's expectation that second-priority noteholders would receive full recovery of principal in a payment default. The upgrade was prompted by a reassessment of how the unpledged value of foreign subsidiaries would benefit these noteholders. The 'B+' rating and '1' recovery rating on Pregis' revolving credit facility and first-lien term loans remain unchanged as does the 'CCC+' rating on its $150 million senior subordinated notes. The ratings do not contemplate any increase in the committed amount of the secured debt. Pregis' term loan may be increased by $100 million subject to further commitments from lenders for acquisitions or other purposes. Such an event would result in a reevaluation of the ratings and recovery prospects. The corporate credit rating on Pregis is 'B' and the outlook is negative. "The ratings on Pregis reflect its high debt leverage, modest cash flow, and volatile raw material costs. These negative factors outweigh the benefits of a value-added product mix; good geographic, end-market, and customer diversity; fairly stable operating profitability; and a low level of capital spending and other required outlays," said Standard & Poor's credit analyst Cindy Werneth. Ratings List Pregis Corp. Corporate credit rating B/Negative/-- Revised Ratings To From -- ---- EUR100 mil. second-priority floating-rate B+ B- notes due in 2013 Recovery rating 1 3 Pregis Corp. -- http://www.pregis.com/-- is a global company with diverse protective, flexible and foodservice packaging and hospital supply products. Via its manufacturing and sales locations in North America and Europe, the company offers packaging solutions for many different markets and applications such as: food, beverage, agricultural/produce, electronics, health and beauty aids, pharmaceuticals, medical, chemicals, furniture, flooring, industrial, home office, appliances, automotive, small business, etc. Pregis is owned by AEA, a leading private equity firm with investors that include former and current CEO's of major multinational corporations, family groups, endowment funds and institutions from around the world QUEEN STREET: Moody's Rates EUR18 Mln Class E Notes at (P)Ba3 ------------------------------------------------------------- Moody's Investors Service announced assigned provisional ratings to six classes of Notes issued by Queen Street CLO II B.V., a bankruptcy remote SPV incorporated under the laws of The Netherlands. The provisional ratings assigned are: -- (P)Aaa to the EUR239.4 Million Class A1 Senior Secured Floating Rate Notes due 2024 -- (P)Aa1 to the EUR59.85 Million Class A2 Senior Secured Floating Rate Notes due 2024, -- (P)Aa2 to the EUR34.875 Million Class B Senior Secured Floating Rate Notes due 2024, -- (P)A3 to the EUR38.25 Million Class C Senior Secured Deferrable Floating Rate Notes due 2024, -- (P)Baa3 to the EUR16.875 Million Class D Senior Secured Deferrable Floating Rate Notes due 2024, -- (P)Ba3 to the EUR18.0 Million Class E Senior Secured Deferrable Floating Rate Notes due 2024. The EUR42.75 Million Class F Subordinated Notes due 2024 will not be rated by Moody's. The provisional ratings of the Notes address the expected loss posed to investors by the legal final maturity. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction. Upon a conclusive review of the final versions of all the documents and legal opinions, Moody's will endeavour to assign a definitive rating to the transaction. A definitive rating may differ from a provisional rating. These provisional ratings are based upon: 1. An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 3. The currency swap transactions, which insulate Queen Street CLO II B.V. from the volatility of the foreign currency exchange rates, for Non-Euro denominated obligations; 4. The expertise of Indicus Advisors as loan manager; and 5. The legal and structural integrity of the issue. The transaction is a cash flow CDO backed primarily by a EUR437.9 Million portfolio of European senior and mezzanine loans. The investments may also include high yield debt and synthetics, and non-Euro issuers (any FX exposure will be hedged through individual asset swaps). About 85% of the portfolio should be acquired by the Closing Date and the remainder of the portfolio will be acquired throughout the ramp-up period, in compliance with portfolio guidelines (which include, among other tests, a diversity score test, a weighted average rating factor test and a weighted average spread test). Thereafter, the portfolio of loans will be actively managed and the portfolio manager will have the option to direct the issuer to buy or sell loans. Any addition or removal of loans will be subject to a number of portfolio criteria. Indicus Advisors will act as the Investment Manager to the Issuer, Queen Street CLO II is the second CLO to be managed by Indicus. This transaction is arranged by JPMorgan Securities Ltd. Moody's has applied its binomial expansion method to this transaction and reflected the expected payments in a cash flow model. The model takes into account the portfolio selection guidelines and most importantly the credit quality (measured through the rating factor, the recovery rate and the diversity score) as well as the expected average spread of the portfolio. * BOOK REVIEW: Black Monday: The Stock Market Catastrophe of October 19, 1987 ------------------------------------------------------------ Author: Tim Metz Publisher: Beard Books Paperback: 268 pages List Price: $34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587982145/internetbankru pt The book Black Monday: The Stock Market Catastrophe of Oct. 19, 1987 written by Tim Metz is a penetrating analysis of a day in 1987 that shook the financial world. This spellbinding book chronicles the devastating market crash of October 19, 1987. The events of the day, as well as the factors that combined to produce the crash, are described in a fast-moving vignette written in journalistic style. A behind-the-scenes look at the persons and institutions who were the key players in the crash gives the reader great insight into how it happened, how it was stopped and by whom, and what the consequences were that affect us even to this day. One key issue was "index arbitrage," a dangerously volatile trading strategy that has increased substantially in 2003. Black Monday is also especially timely in light of the 2003 scandal over the New York Stock Exchange Chairman's pay. ********* 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/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *