/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070608.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, June 8, 2007, Vol. 8, No. 113 Headlines A U S T R I A BISTELA LLC: Claims Registration Period Ends June 20 HERRENAUSSTATTER KIRCHBAUMER: Claims Registration Ends June 18 HOLEX LLC: Vienna Court Orders Business Shutdown KIRMIZI & SEN: Claims Registration Period Ends June 15 MAXINCAKOVA KG: Linz Court Orders Business Closure WEB AND NET: Claims Registration Period Ends June 19 F I N L A N D SANMINA-SCI CORP: Moody's Rates US$600 Mln Senior Notes at Ba3 F R A N C E NOVASAUR SAS: Moody's Withdraws Ba2 Corporate Family Rating G E R M A N Y BAU-IDEE GMBH: Claims Registration Period Ends June 25 BAUER MASSIV: Claims Registration Period Ends July 5 BENQ CORP: Administrators Start Auctioning Mobile Arm's Assets ECO-PACK GMBH: Claims Registration Period Ends July 16 EDWARD WUJ: Claims Registration Period Ends July 4 EMS BETEILIGUNGS: Claims Registration Period Ends July 13 GETRANKE OASE: Claims Registration Period Ends June 22 HGB WASSERKLAR: Claims Registration Ends Aug. 13 ILLERTALER BIOMASSE: Claims Registration Ends June 14 IMRAG INTERNATIONAL: Claims Registration Ends July 9 JUREX GMBH: Files for Insolvency at Moenchengladbach Court KARL THUMM: Creditors Must Register Claims by June 18 KOESTER ELEKTRONIK: Claims Registration Ends June 22 KLIMA-TON BAUSYSTEME: Creditors Must Register Claims by June 22 KOCH STALLBE: Creditors Must Register Claims by June 20 MOEBEL-EXPRESS-COLLECTION: Creditors Must File Claims by June 22 RS ELEKTRONIK: Creditors Must Register Claims by June 25 SANARBAU GMBH: Claims Registration Period Ends July 13 SATELLITE AND TRANSFER: Creditors Must File Claims by June 27 SCHLOESSER BACKBETRIEBE: Claims Registration Ends June 26 SPORT- UND WELLNESSZENTRUM: Creditors' Claims Due June 29 TEXTIL LOGISTIK: Claims Registration Ends July 2 TISCHLEREI PETER: Claims Registration Ends July 11 H U N G A R Y GUESS? INC: Earns US$35.5 Mln in 1st Quarter Ended May 5, 2007 K A Z A K H S T A N AIJAN LLP: Proof of Claim Deadline Slated for July 11 D-JAN LLP: Creditors Must File Claims July 6 FIRM FERRUM: Claims Filing Period Ends July 6 JOLDAS-ST LLP: Claims Registration Ends July 11 KOKSU-INVEST LLP: Creditors' Claims Due July 6 ORLEU LLP: Proof of Claim Deadline Slated for July 6 SHAKER &K LLP: Creditors Must File Claims July 6 SLAY LLP: Claims Filing Period Ends July 11 STROYHOLDING LLP: Claims Registration Ends July 13 TEMIRBANK: Fitch Places BB- Rating on New US$1.2-Billion Bonds N E T H E R L A N D S GRESHAM CAPITAL: Fitch Assigns BB Rating to EUR9.78 Mln Notes SKYLINE 2007: Fitch Rates EUR43.5-Million Notes at BB TEMIR CAPITAL: Fitch Places BB- Rating on US$1.2-Billion Bonds P O R T U G A L TAPE BORROWER: Moody's Junks Rating on Sr. Secured Term Loan C R U S S I A AGRO-SERVICE OJSC: Creditors Must File Claims by June 19 AGRO-SNAB-SERVICE: Court Names V. Doluda as Insolvency Manager AMBER CJSC: Creditors Must File Claims by July 19 ANAR CJSC: Moscow Court Names A. Kubasov as Insolvency Manager BOGATYREVSKOYE CJSC: Asset Sale for June 13 GAGARIN-SEL-KHOZ-KHIMIYA: Creditors Must File Claims by June 19 GORNO-SPETS-STROY: Creditors Must File Claims by July 19 NOVGOROD-KHLEB-PROM: Creditors Must File Claims by June 19 PETROPAVLOVSKIY CREAMERY: Creditors Must File Claims by June 19 PONOMAREVKA-TRANS CJSC: Creditors Must File Claims by July 19 PROM-STROY-DETAIL: Creditors Must File Claims by July 19 SAYANSK-AGRO-PROM-TRANS: Bankruptcy Hearing Slated for Sept. 5 STROY-DETAIL CJSC: Creditors Must File Claims by July 19 TULA-TRANS-SERVICE: Tula Bankruptcy Hearing Slated for Aug. 2 VNESH-TORG-INVEST: Creditors Must File Claims by June 19 YUKOS OIL: Lack of Bids Cues Auctioneer to Cancel June 7 Sale YUKOS OIL: Unitex Finalizes Purchase of Petrol Station Network S W I T Z E R L A N D B + B BERG: Creditors' Liquidation Claims Due June 22 DUSS FREDY: Claims Registration Period Ends June 18 FONTANA LAGERTECHNIK: Claims Registration Period Ends June 21 MARTIN SCHUMACHER: Creditors' Liquidation Claims Due June 21 MODE ATELIER2: Creditors' Liquidation Claims Due June 25 NIGHTHAWK RADIOLOGY: Moody's Assigns Ba3 Corporate Family Rating ROBERT KALHOFER: Basel Court Starts Bankruptcy Proceedings ROPA ENTERTAINMENT: Creditors' Liquidation Claims Due June 25 SCREEN JSC: Creditors' Liquidation Claims Due June 22 VENUS TRADE: Creditors' Liquidation Claims Due June 25 U K R A I N E ASTORIYA CJSC: Claims Filing Deadline Set June 14 LIGO LLC: Claims Filing Deadline Set June 14 L.V.E. LLC: Claims Filing Deadline Set June 14 NIVA LLC: Creditors Must File Claims by June 14 REPAIR-TRANSPORT ENTERPRISE: Claims Filing Deadline Set June 13 SLOVGRES LLC: Claims Filing Deadline Set June 14 TOREZ MACHINEBUILDING: Creditors Must File Claims by June 14 UKRAINIAN ENERGY : Claims Filing Deadline Set June 14 U N I T E D K I N G D O M BRITISH AIRWAYS: Doesn't Offer Passenger Value, Survey Says CREDIT SUISSE INT'L: Fitch Places B- Rating on US$125-Mil. Loan EMI GROUP: Warner Music Confident on Acquiring Record Labels FKI PLC: Earns GBP46.6 Million in Year Ended March 31, 2007 FORD MOTOR: Faces Breach of Contract Suit from Navistar Int'l GUGGENHEIM STRUCTURED: Fitch Affirms BB Rating on Class F Notes ISOFT GROUP: Computer Sciences Corp. Mulls Cash Offer METRONET RAIL: Bank Syndicate Refuses Second Loan Waiver NOVELIS CORP: Moody's Rates US$860 Mil. Gtd. Sr. Notes at Ba2 SCOTTISH RE: Fitch Lifts Issuer Default Rating to BB- from B+ WARNER MUSIC: Believes it Can Acquire EMI's Record Labels WARNER MUSIC: Fitch Comments on Risk of Potential Bid for EMI WINCANTON PLC: March 31 Balance Sheet Upside Down by GBP13.7 Mln ********* ============= A U S T R I A ============= BISTELA LLC: Claims Registration Period Ends June 20 ---------------------------------------------------- Creditors owed money by LLC Bistela (FN 1126141i) have until June 20 to file written proofs of claim to court-appointed estate administrator Felix Stortecky at: Dr. Felix Stortecky Dr.-Karl-Lueger-Platz 2 1010 Vienna Austria Tel: 01/513 88 37 Fax: 01/514 35 40 E-mail: ra-stortecky@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on July 4 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 Engelhartstetten, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 36 S 71/07v). HERRENAUSSTATTER KIRCHBAUMER: Claims Registration Ends June 18 -------------------------------------------------------------- Creditors owed money by LLC Herrenausstatter Kirchbaumer (FN 99796i)have until June 18 to file written proofs of claim to court-appointed estate administrator Gerhard Kucher at: Dr. Gerhard Kucher St.Veiter Strasse 9 9020 Klagenfurt Austria Tel: 0463/507510 Fax: 0463/507510-11 E-mail: rechtsanwalt@kucher-moessler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 26 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Meeting Hall 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 40 S 25/07b). HOLEX LLC: Vienna Court Orders Business Shutdown ------------------------------------------------ The Trade Court of Vienna entered May 16 an order shutting down the business of LLC HOLEX (FN 277231v). Court-appointed estate administrator Elisabeth Stanek-Noverka recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Elisabeth Stanek-Noverka Hernalser Hauptstrasse 116 1170 Vienna Austria Tel: 486 02 09 Fax: 486 02 09 18 E-mail: ra-noverka@chello.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 4 (Bankr. Case No 4 S 51/07p). KIRMIZI & SEN: Claims Registration Period Ends June 15 ------------------------------------------------------ Creditors owed money by OEG Kirmizi & Sen (FN 273815w) have until June 15 to file written proofs of claim to court-appointed estate administrator Stefan Aigner at: Dr. Stefan Aigner Maria-Theresien-Strasse 57 6020 Innsbruck Austria Tel: 0512/582483 Fax: 0512/58248285 E-mail: dr.aigner@ra-kap.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on June 29 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Room 2 Meeting Hall Second Floor Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on May 15 (Bankr. Case No. 7 S 28/07p). MAXINCAKOVA KG: Linz Court Orders Business Closure -------------------------------------------------- The Land Court of Linz entered May 15 an order closing the business of KG Maxincakova (FN 276071m). Court-appointed estate administrator Reinhold Zeinhofer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Reinhold Zeinhofer Hofgasse 9 4020 Linz Austria Tel: 0732/778898 Fax: 0732/77889899 E-mail: zs@anwaltskanzlei.co.at Headquartered in Walding, Austria, the Debtor declared bankruptcy on May 3 (Bankr. Case No 12 S 43/07x). WEB AND NET: Claims Registration Period Ends June 19 ---------------------------------------------------- Creditors owed money by LLC Web and Net Play (FN 195997g) have until June 19 to file written proofs of claim to court-appointed estate administrator Herbert Hoffmann at: Mag. Herbert Hoffmann Wiener Strasse 18 3430 Tulln Austria Tel: 02272/81 9 29 Fax: 02272/81 9 29-20 E-mail: mag.hoffmann@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 10 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Tulln, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No. 14 S 97/07s). ============= F I N L A N D ============= SANMINA-SCI CORP: Moody's Rates US$600 Mln Senior Notes at Ba3 -------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Sanmina SCI Corporation's US$600 million senior floating rate notes due 2010 and 2014. Concurrently, Moody's affirmed the company's Ba3 corporate family rating and the B2 ratings on Sanmina's US$400 million and US$600 million senior subordinated notes, due 2013 and 2016, respectively. The proceeds from the new notes will refinance the company's US$600 million unsecured term facility due 2008, whose rating will be withdrawn upon repayment. The rating outlook is stable. The Ba3 rating on the new notes reflects both the overall probability of default of the company to which Moody's assigned a PDR of Ba3, and a loss given default of LGD 4 for the new notes. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by substantially all of Sanmina's domestic restricted subsidiaries. Ratings/assessments assigned: -- US$600 million senior floating rate notes due 2010 and 2014 at Ba3 (LGD4, 53%) Ratings/assessments affirmed: -- Corporate family rating at Ba3; -- Probability-of-default rating at Ba3; -- US$400 million senior subordinated notes due 2013 at B2 (LGD5, 83%); -- US$600 million senior subordinated notes due 2016 at B2 (LGD5, 83%); -- Speculative grade liquidity rating of SGL-2. Ratings/assessments to be withdrawn upon repayment: -- US$600 million senior unsecured term loan due 2008 at Ba3 (LGD3, 45%); Sanmina's Ba3 corporate family rating continues to reflect the overcapacity, volatility and competition in the EMS industry as also the company's weak financial performance and credit metrics partly due to weaker operating performance and increased working capital intensity. Moody's notes the recent stabilization of performance, inventory management and improved cash flow generation, and expects further improvement of the company's business and financial profile considering it's potential exit from the low margin PC business. Moody's also notes the improved debt-maturity profile of Sanmina via this financing which replaces the facility due January 2008 with the earliest maturity on the notes in 2010. Other factors supporting Sanmina's Ba3 rating include Sanmina's tier one status in the EMS industry, generally favorable outsourcing trend by the OEMs, growing diversity in Sanmina's end markets served, and the company's strength in some of the newer industries such as medical and defense industries. Headquartered in San Jose, California, Sanmina-SCI Corporation (NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a Electronics Manufacturing Services (EMS) provider focused on delivering complete end-to-end manufacturing solutions to technology companies around the world. Service offerings include product design and engineering, test solutions, manufacturing, logistics and post-manufacturing repair/warranty services. The company operates in Brazil, Mexico, Finland, Hungary, among others. =========== F R A N C E =========== NOVASAUR SAS: Moody's Withdraws Ba2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has withdrawn the corporate family rating of Novasaur S.A.S. for business reasons. Moody's has also withdrawn the rating on the EUR265 million senior subordinated notes issued by FG4 S.A., a finance subsidiary of Novasaur, following their early redemption. These ratings were withdrawn: -- Corporate Family rating of Ba2; -- B1 rating on the EUR265 million 8.375% senior subordinated notes due 2015 issued by FG4 S.A. Novasaur S.A.S., headquartered in Guyancourt, France, is the third largest provider of water and sanitation services as well as waste management services in France. In 2005/06, the group reported revenues of EUR1.4 billion. ============= G E R M A N Y ============= BAU-IDEE GMBH: Claims Registration Period Ends June 25 ------------------------------------------------------ Creditors of Bau-Idee GmbH have until June 25 to register their claims with court-appointed insolvency manager Karina Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 10:50 a.m. on July 25, at which time the insolvency manager will present her first report on the insolvency proceedings. Information on the venue of the creditors' meeting can be found at: Info-Tafel im Justizzentrum Justizzentrum Magdeburg Breiter Weg 203-206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karina Schwarz Klausenerstr. 24 39112 Magdeburg Germany Tel: 0391/ 6286260 Fax: 0391/ 6286266 E-mail: magdeburg@rechtsanwaelte-schwarz.de The District Court of Magdeburg opened bankruptcy proceedings against Bau-Idee GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bau-Idee GmbH Keplerstr. 7 39104 Magdeburg Germany Attn: Brent Lembeck, Manager Harsdorfer Str. 37 39110 Magdeburg Germany BAUER MASSIV: Claims Registration Period Ends July 5 ---------------------------------------------------- Creditors of Bauer Massiv Haus GmbH have until July 5 to register their claims with court-appointed insolvency manager Alexander Bergfeld. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 24, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuremberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg 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: Alexander Bergfeld Peuntgasse 3 90402 Nuremberg Germany Tel: 0911/27980-0 Fax: 0911/27980-0 The District Court of Nuremberg opened bankruptcy proceedings against Bauer Massiv Haus GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bauer Massiv Haus GmbH Attn: Helmut Bauer, Manager Lechstr. 24 90451 Nuremberg Germany BENQ CORP: Administrators Start Auctioning Mobile Arm's Assets -------------------------------------------------------------- Administrators of BenQ Mobile GmbH & Co., the insolvent German-based wholly owned subsidiary of BenQ Corp., began auctioning the mobile unit's production equipment online in a move to bring the insolvency to a close, Mobile Today reports. "The insolvency auction started [Mon]day. Smaller devices, measuring instruments, everything that can be moved is being sold," Sybille Greiser, spokeswoman for the administrator, was quoted by Mobile Today as saying. According to the report, the online auction is a foretaste of the major auctions slated to happen between June 12 and 15 at BenQ's Kamp-Lintfort plant. The administrator hopes to sell the equipment used to produce many of the company's mobile handsets, along with warehouse and IT equipment, Mobile Today relates. About the Company 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, camera phones, and other products. 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 Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. ECO-PACK GMBH: Claims Registration Period Ends July 16 ------------------------------------------------------ Creditors of ECO-PACK GmbH have until July 16 to register their claims with court-appointed insolvency manager Hans-Juergen Paul. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Juergen Paul Getzelauer Strasse 2 D 04279 Leipzig Germany Tel: 0341/336090 Fax: 0341/3360934 The District Court of Halle-Saalkreis opened bankruptcy proceedings against ECO-PACK GmbH on May 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ECO-PACK GmbH Beunaer Strasse 1 06217 Merseburg Germany EDWARD WUJ: Claims Registration Period Ends July 4 -------------------------------------------------- Creditors of Edward Wuj Innenbau GmbH have until July 4 to register their claims with court-appointed insolvency manager Falk Eppert. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Aug. 8, 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 Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) 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: Falk Eppert Vietmannsdorfer Strasse 23 17268 Templin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against Edward Wuj Innenbau GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Edward Wuj Innenbau GmbH Dammweg 3 16303 Schwedt (Oder) Germany EMS BETEILIGUNGS: Claims Registration Period Ends July 13 --------------------------------------------------------- Creditors of EMS Beteiligungs GmbH have until July 13 to register their claims with court-appointed insolvency manager Ulrich Bastian. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Aug. 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Bastian Sendlinger Str. 46 80331 Munich Germany Tel: 089/2603966 Fax: 089/2609204 The District Court of Munich opened bankruptcy proceedings against EMS Beteiligungs GmbH on May 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EMS Beteiligungs GmbH Attn: Gerburg Patzina, Manager Menziner Str. 96 80997 Munich Germany GETRANKE OASE: Claims Registration Period Ends June 22 ------------------------------------------------------ Creditors of Getranke Oase GmbH have until June 22 to register their claims with court-appointed insolvency manager Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 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. Sebastian Henneke Adenauerallee 36 46399 Bocholt Germany Tel: 028 71/ 235 48 77 Fax: +4928712354879 The District Court of Muenster opened bankruptcy proceedings against Getranke Oase GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Getranke Oase GmbH Schulstrasse 32 46395 Bocholt Germany Attn: Klaus Guenzel, Manager Salbeiweg 1 46395 Bocholt Germany HGB WASSERKLAR: Claims Registration Ends Aug. 13 ------------------------------------------------ Creditors of HGB Wasserklar Verwaltungs GmbH have until Aug. 13 to register their claims with court-appointed insolvency manager Hermann Berding. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Sept. 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 Delmenhorst Hall 2 Branch 1 Cramerstrasse 183 27749 Delmenhorst 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: Hermann Berding Jammertal 1 D 49661 Cloppenburg Germany Tel: 04471/91260 Fax: 04471/82997 The District Court of Delmenhorst opened bankruptcy proceedings against HGB Wasserklar Verwaltungs GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HGB Wasserklar Verwaltungs GmbH Hauptstr. 8 27243 Prinzhoefte Germany ILLERTALER BIOMASSE: Claims Registration Ends June 14 ----------------------------------------------------- Creditors of Illertaler Biomasse Betriebsverwaltungs GmbH i.L. have until June 14 to register their claims with court-appointed insolvency manager Dr. Dieter Schmid. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on July 5, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Residenzplatz 4-6 87435 Kempten 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. Dieter Schmid Karlstr. 31-33 89073 Ulm Germany Tel: 0731/968800 Fax: 0731/9688050 The District Court of Kempten opened bankruptcy proceedings against Illertaler Biomasse Betriebsverwaltungs GmbH i.L. on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Illertaler Biomasse Betriebsverwaltungs GmbH i.L. Wilhelm-Geiger-Strasse 1 87561 Oberstdorf Germany IMRAG INTERNATIONAL: Claims Registration Ends July 9 ---------------------------------------------------- Creditors of IMRAG International Media Research Agency GmbH have until July 9 to register their claims with court-appointed insolvency manager Michael C. Frege. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Aug. 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 Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael C. Frege Augustusplatz 9 04109 Leipzig Germany Tel: 0341/2167225 Fax: 0341/2167232 E-mail: insolvenz@cms-hs.com The District Court of Leipzig opened bankruptcy proceedings against IMRAG International Media Research Agency GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IMRAG International Media Research Agency GmbH Altenburger Strasse 11 04275 Leipzig Germany JUREX GMBH: Files for Insolvency at Moenchengladbach Court ---------------------------------------------------------- Jurex GmbH and 19 of its branches filed for insolvency proceedings at the District Court of Moenchengladbach on June 1, 2007. Michael Bremen, the court-appointed provisional insolvency administrator, will take over the responsibility for either the sale or restructuring of the company. A statement from CEO Norbert Luer to company staff said that unexpected restrictions imposed on its credit lines had dramatically affected the company's financial situation over the last week. It is said that banks are no longer prepared to offer more scope for promising negotiations with potential investors and buyers, the Financial Times reports citing Handelsblatt as its source. In a report abstracted from Frankfurter Allgemeine Zeitung, Financial Times relates that Jurex went under pressure when Germany's postal sector control authority allowed Deutsche Post to reduce its postage rates by to to 55%. The company took legal actions against the authority's decision to approve the postage fee reduction. Headquartered in Erkelenz, Germany, Jurex Gmbh -- http://www.jurex.org/-- is a privately-owned German letter forwarding company. It was founded in 2002 and has a workforce of around 1,200 in 53 branches. KARL THUMM: Creditors Must Register Claims by June 18 ----------------------------------------------------- Creditors of Karl Thumm Gummi- und Kunststoffgesellschaft mbH have until June 18 to register their claims with court-appointed insolvency manager Heike Metzger. Creditors and other interested parties are encouraged to attend the meeting 10:40 a.m. on July 9, 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim 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: Heike Metzger Hauptstr. 161 68259 Mannheim Germany Tel: 0621/43288990 The District Court of Mannheim opened bankruptcy proceedings against Karl Thumm Gummi- und Kunststoffgesellschaft mbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Karl Thumm Gummi- und Kunststoffgesellschaft mbH Kruegerstr. 8-10 68219 Mannheim Germany KOESTER ELEKTRONIK: Claims Registration Ends June 22 ---------------------------------------------------- Creditors of Koester Elektronik GmbH have until June 22 to register their claims with court-appointed insolvency manager Norbert Kruse. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 10, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 13 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: Norbert Kruse Bonhoefferstr. 10 48282 Emsdetten Germany Tel: 02572/875-0 Fax: +49257287533 The District Court of Muenster opened bankruptcy proceedings against Koester Elektronik GmbH on May 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Koester Elektronik GmbH Hoester Damm 4 49536 Lienen Germany KLIMA-TON BAUSYSTEME: Creditors Must Register Claims by June 22 --------------------------------------------------------------- Creditors of Klima-TON Bausysteme GmbH have until Klima-TON Bausysteme GmbH to register their claims with court-appointed insolvency manager Peter Staufenbiel. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Goettingen Hall B8 Berliner Strasse 8 37073 Goettingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Staufenbiel Dransfelder Strasse 19 A 37079 Goettingen Germany Tel: 0551/9000950 Fax: 0551/9000955 E-mail: staufenbiel@hauter.com The District Court of Goettingen opened bankruptcy proceedings against Klima-TON Bausysteme GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Klima-TON Bausysteme GmbH Zum Loh 36 37079 Goettingen Germany KOCH STALLBE: Creditors Must Register Claims by June 20 ------------------------------------------------------- Creditors of Koch Stallbe- und Entlueftungen GmbH have until June 20 to register their claims with court-appointed insolvency manager Siegfried Beck. Creditors and other interested parties are encouraged to attend the meeting at 10:20 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 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: Siegfried Beck Stahlstr. 17 90411 Nuremberg Germany Tel: 0911/9512850 Fax: 0911/95128510 The District Court of Ansbach opened bankruptcy proceedings against Koch Stallbe- und Entlueftungen GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Koch Stallbe- und Entlueftungen GmbH An der Lehmgrube 7 91555 Feuchtwangen Germany MOEBEL-EXPRESS-COLLECTION: Creditors Must File Claims by June 22 ---------------------------------------------------------------- Creditors of Moebel-Express-Collection GmbH have until June 22 to register their claims with court-appointed insolvency manager Andrea Julia Wolf. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on July 20, 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 Saarbruecken Area Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach 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: Andrea Julia Wolf Talstrasse 12 66119 Saarbruecken Germany Tel: 0681/859 150 Fax: 0681/859 1515 The District Court of Saarbruecken opened bankruptcy proceedings against Moebel-Express-Collection GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moebel-Express-Collection GmbH Dresdener Str. 1 66450 Bexbach Germany RS ELEKTRONIK: Creditors Must Register Claims by June 25 -------------------------------------------------------- Creditors of RS elektronik GmbH have until June 25 to register their claims with court-appointed insolvency manager Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 10:05 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 Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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: Horst Piepenburg Heinrich-Heine-Allee 20 40213 Duesseldorf Germany Tel: 0211/492240 Fax: 0211/4922487 The District Court of Kleve opened bankruptcy proceedings against RS elektronik GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RS elektronik GmbH Bremer Weg 9 46446 Emmerich am Rhein Germany SANARBAU GMBH: Claims Registration Period Ends July 13 ------------------------------------------------------ Creditors of Sanarbau GmbH have until July 13 to register their claims with court-appointed insolvency manager Stefan Jakob. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 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 Chemnitz Hall 28 Fuerstenstrasse 21 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan Jakob Plantagenstrasse 3 08371 Glauchau Germany Tel: (03763) 77870 Fax: (03763) 778711 E-mail: info@inso-verwalter.de The District Court of Chemnitz opened bankruptcy proceedings against Sanarbau GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sanarbau GmbH Attn: Mustafa Kasakolu, Manager Roemerstrasse 21 08056 Zwickau Germany SATELLITE AND TRANSFER: Creditors Must File Claims by June 27 ------------------------------------------------------------- Creditors of Satellite and Transfer GmbH have until June 27 to register their claims with court-appointed insolvency manager Andre Loeffler. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andre Loeffler Klewitzstr. 15 39112 Magdeburg Germany Tel: 0391/7324630 o. 39 Fax: 0391/7324633 E-mail: magdeburg@loeffler-insolvenzverwalter.de The District Court of Magdeburg opened bankruptcy proceedings against Satellite and Transfer GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Satellite and Transfer GmbH Halberstadter Strasse 128 39112 Magdeburg Germany SCHLOESSER BACKBETRIEBE: Claims Registration Ends June 26 --------------------------------------------------------- Creditors of Schloesser Backbetriebe GmbH have until June 26 to register their claims with court-appointed insolvency manager Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 10:40 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: Jana Dettmer Tel: 0221/92 12 17 - 0 Fax: +4922192121720 The District Court of Cologne opened bankruptcy proceedings against Schloesser Backbetriebe GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schloesser Backbetriebe GmbH Attn: Peter Schloesser, Manager Rosengarten 2 50827 Koeln Germany SPORT- UND WELLNESSZENTRUM: Creditors' Claims Due June 29 --------------------------------------------------------- Creditors of Sport- und Wellnesszentrum Trappenkamp GmbH have until June 29 to register their claims with court-appointed insolvency manager Marc Schaumann. Creditors and other interested parties are encouraged to attend the meeting at noon on July 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 insolvency manager can be reached at: Marc Schaumann Falkenstrasse 22 23564 Luebeck Germany The District Court of Norderstedt opened bankruptcy proceedings against Sport- und Wellnesszentrum Trappenkamp GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sport- und Wellnesszentrum Trappenkamp GmbH Waldstrasse 3 24610 Trappenkamp Germany TEXTIL LOGISTIK: Claims Registration Ends July 2 ------------------------------------------------ Creditors of Textil Logistik Diamantis GmbH have until July 2 to register their claims with court-appointed insolvency manager Rolf Weidmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 23, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Weidmann Alfredstr. 279 45133 Essen Germany The District Court of Essen opened bankruptcy proceedings against Textil Logistik Diamantis GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Textil Logistik Diamantis GmbH Laubenhof 25 - 27 45236 Essen Germany Attn: Adamantios Diamantis, Manager Ruhrstein 2 45133 Essen Germany TISCHLEREI PETER: Claims Registration Ends July 11 -------------------------------------------------- Creditors of Tischlerei Peter Hoehn GmbH have until July 11 to register their claims with court-appointed insolvency manager Torsten Gutmann. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Aug. 8, 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 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 insolvency manager can be reached at: Torsten Gutmann Lueders Partnergesellschaft Zum Blauen See 5 D 31275 Lehrte Germany Tel: (0 51 32) 82 68 38 Fax: (0 51 32) 82 68 96 The District Court of Braunschweig opened bankruptcy proceedings against Tischlerei Peter Hoehn GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tischlerei Peter Hoehn GmbH Attn: Andreas Stache, Manager Bortfelder Strasse 23 38176 Wendeburg Germany ============= H U N G A R Y ============= GUESS? INC: Earns US$35.5 Mln in 1st Quarter Ended May 5, 2007 -------------------------------------------------------------- Guess? Inc. reported financial results for the first quarter of its 2008 fiscal year, which ended May 5, 2007. For the first quarter of fiscal 2008, the company reported record net earnings of US$35.5 million, an increase of 71.9% compared to net earnings of US$20.7 million for the recast quarter ended April 29, 2006. Paul Marciano, Chief Executive Officer, commented, �The strength of our brand and the solid execution of our global strategy have driven these record results, which represented our 15th consecutive quarter of earnings growth. I am extremely pleased with our team�s outstanding performance. All of our businesses generated double digit revenue growth, led by strong execution in our international operations. In Europe, the addition of Focus Europe, our contemporary line, and the growth of our existing businesses drove a 77% sales increase in the segment. Strong sales performance in South Korea drove Asian revenues higher and led to a 77% increase in our wholesale segment revenues." Mr. Marciano continued, �Our North American retail business performed extremely well, posting its 17th consecutive quarter of same store sales growth. And the strength of our accessory lines drove licensing revenue growth of 42%. It is important to note that our footwear licensee�s business has been expanding rapidly. Compared to just a year ago, their business has experienced explosive revenue growth, more than doubling its volume in the period. We continue to be very excited about the prospects of this business both domestically and internationally." Mr. Marciano concluded, �On a consolidated basis, we increased net earnings by 71.9%, driven by earnings growth in all of our businesses around the world. Our earnings were well balanced and our performance once again demonstrates the power of our diversified business model." Total net revenue for the first quarter of fiscal 2008 increased 42.3% to US$377.9 million from US$265.7 million in the prior-year period. The company�s retail stores in the U.S. and Canada generated revenue of US$179.5 million in the first quarter of fiscal 2008, a 19% increase from US$150.9 million in the same period a year ago. Comparable store sales increased 13.6% for the quarter ended May 5, 2007, compared to the thirteen weeks ended May 6, 2006. The company operated 336 retail stores in the U.S. and Canada at the end of the first quarter of fiscal 2008 versus 316 stores a year earlier. Net revenue from the company�s wholesale segment, which includes the Company�s Asian operations, increased 77.4% to US$59.2 million in the first quarter of fiscal 2008, from US$33.4 million in the prior-year period. Net revenue from the company�s European segment increased 77.2% to US$118.9 million in the first quarter of fiscal 2008, compared to US$67.1 million in the prior-year period. Licensing segment net revenue increased 41.5% to US$20.3 million in the first quarter of fiscal 2008, from US$14.3 million in the prior-year period. Operating earnings for the first quarter of fiscal 2008 increased 69.0% to US$57.9 million from US$34.3 million in the prior-year period. Operating margin in the first quarter improved 240 basis points to 15.3%, compared to the prior year�s quarter. The margin expansion was driven by better product margins, significant operating margin expansion in the wholesale segment, and the positive impact in the company�s first quarter business mix of the higher European business. The company�s SG&A rate increased 30 basis points quarter over quarter. Five-Week Transition Period and Recast 2006 Financial Results The company also disclosed its financial results for the five-week transition period ended Feb. 3, 2007, and the results for the recast fourth quarter and year ended Feb. 3, 2007. The five-week transition period resulted from the company�s decision to change its fiscal year. For the five-week transition period, revenues were US$136.0 million, net earnings were US$8.0 million. For the recast quarter ended Feb. 3, 2007, revenues were US$396.2 million, operating earnings were US$71.4 million, operating margin reached 18.0% and net earnings were US$45.9 million. Revenues for the recast year ended Feb. 3, 2007, were US$1.25 billion, operating earnings were US$205.5 million, operating margin reached 16.4% and net earnings were US$131.2 million. Outlook The company�s expectations for the second quarter ending July 7, 2007, are: -- Consolidated net revenues are expected to range from US$335 million to US$345 million. -- Operating margin is expected to be about 14%. The company�s expectations for the fiscal year ending Feb. 2, 2008, are: -- Consolidated net revenues are expected to range from US$1.51 billion to US$1.56 billion. -- Operating margin is expected to be about 17.5%. The fiscal year ending Feb. 2, 2008 will include 52 weeks and a four-week January, compared to the recast year ended Feb. 3, 2007, which included 53 weeks and a five-week January. Dividend The company's Board of Directors has declared a cash dividend of US$0.06 per share on the company�s common stock. The dividend will be payable on July 6, 2007, to shareholders of record at the close of business on June 20, 2007. About Guess? Inc. Guess? Inc. (NYSE: GES) -- http://www.guessinc.com/-- designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. At May 5, 2007, the company operated 336 retail stores in the United States and Canada. The company also distributes its products through better department and specialty stores around the world, including the Philippines, Hungary and the Dominican Republic. * * * Guess? Inc. still carries Standard & Poor's "BB" long-term foreign and local issuer credit ratings which were placed in December 2006. =================== K A Z A K H S T A N =================== AIJAN LLP: Proof of Claim Deadline Slated for July 11 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Aijan insolvent. Creditors have until July 11 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan D-JAN LLP: Creditors Must File Claims July 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP D-Jan insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Moldagulov Str. 9/18 Uralsk West Kazakhstan Ka zakhstan Tel: 8 (3112) 51-77-10 FIRM FERRUM: Claims Filing Period Ends July 6 --------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Firm Ferrum insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Moldagulov Str. 9/18 Uralsk West Kazakhstan Ka zakhstan Tel: 8 (3112) 51-77-10 JOLDAS-ST LLP: Claims Registration Ends July 11 ----------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Joldas-St insolvent. Creditors have until July 11 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan KOKSU-INVEST LLP: Creditors' Claims Due July 6 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Koksu-Invest insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Samal, 15-29 Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 25-43-90 ORLEU LLP: Proof of Claim Deadline Slated for July 6 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Orleu insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Frunze Str. 52-52 Zyryanovsk East Kazakhstan Kazakhstan Tel: 8 (235) 4-01-07 8 (235) 6-03-83 SHAKER &K LLP: Creditors Must File Claims July 6 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Shaker &K insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Frunze Str. 52-52 Zyryanovsk East Kazakhstan Kazakhstan Tel: 8 (235) 4-01-07 8 (235) 6-03-83 SLAY LLP: Claims Filing Period Ends July 11 ------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Slay insolvent. Creditors have until July 11 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Office 206 Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan STROYHOLDING LLP: Claims Registration Ends July 13 -------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Stroyholding insolvent. Creditors have until July 13 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Ushanov Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 26-24-41 TEMIRBANK: Fitch Places BB- Rating on New US$1.2-Billion Bonds -------------------------------------------------------------- Fitch Ratings has assigned Temirbank's and Temir Capital B.V.'s new US$1.2 billion global medium-term note program final ratings of Long-term 'BB-' (for senior unsecured notes with maturities in excess of one year) and Short-term 'B' (for senior unsecured notes with maturities of less than one year). It has also assigned a final Long-term 'BB-' rating to TCB's recent US$500 million 9.5% issue due May 2014, which is the first draw-down under the program. Temir is rated Issuer Default 'BB-'/Stable, Short-term 'B', Individual 'D/E' and Support '3'. Temir's IDR, Short-term and Support ratings are based on a moderate probability of support forthcoming from its parent, Bank TuranAlem (rated IDR 'BB+' with a Positive Outlook), one of the two largest banks in Kazakhstan. BTA acquired a 51% stake in Temir in December 2006. Temir was one of the 10 largest banks in Kazakhstan, but held a modest 2% of the system's assets at end-2006. In 2005, the bank's newly appointed senior management refocused its strategy towards aggressive growth in retail lending, in particular mortgages, home equity and car loans. ===================== N E T H E R L A N D S ===================== GRESHAM CAPITAL: Fitch Assigns BB Rating to EUR9.78 Mln Notes ------------------------------------------------------------- Fitch has assigned Gresham Capital CLO IV B.V.'s upcoming issue of EUR300 million floating-rate notes expected ratings. -- EUR75 million Class A1A senior secured floating-rate variable funding notes due 2023: 'AAA' -- EUR75 million Class A1B senior secured floating-rate notes due 2023: 'AAA' -- EUR48.8 million Class A2 senior secured floating-rate notes due 2023: 'AAA' -- EUR24.1 million Class B deferrable secured floating-rate notes due 2023: 'AA' -- EUR21.9 million Class C deferrable secured floating-rate notes due 2023: 'A' -- EUR22.02 million Class D deferrable secured floating-rate notes due 2023: 'BBB' -- EUR9.78 million Class E deferrable secured floating-rate notes due 2023: 'BB' -- EUR33.8 million Class N subordinated notes due 2023: not rated The transaction is a securitization of leverage loans including primarily senior secured loans, senior unsecured loans, second lien loans, mezzanine obligations and CLO securities. The expected ratings of the Class A notes (Class A1A, A1B and A2) address the ultimate repayment of principal at maturity and the timely payment of interest when due, according to the terms of the notes. For all other Classes of notes the expected ratings address the ultimate payment of principal and interest, including deferred interest, at maturity. The final ratings are contingent on the receipt of final documents conforming to information already received. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager, Investec Principal Finance, part of Investec Bank (U.K.) Ltd., subject to the guidelines outlined in the collateral management agreement. The guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. IPF will actively manage the collateral over a six-year reinvestment period. The ratings are also based on the credit enhancement provided to the various Classes of notes in the form of subordination, structural protection and excess spread. Credit enhancement, in the form of subordination, for the Class A1A and A1B will total 50%, of which 16.27% will be provided by the A2 notes, 8.04% by the B notes, 7.3% by the C notes, 7.34% by the D notes, 3.59% by the E notes and 7.78% by the unrated subordinated notes. Some of the EUR33.8 million proceeds from the subordinated Class of notes will be used to pay certain initial expenses of the issuer rather than to purchase collateral and therefore will not be available for subordination. Gresham IV CLO B.V. is a limited liability company incorporated under the laws of Netherlands. At the closing date, the issuer is expected to have purchased at least 70% of the target portfolio; the remainder will be purchased over the following 180 days. SKYLINE 2007: Fitch Rates EUR43.5-Million Notes at BB ----------------------------------------------------- Fitch has assigned expected ratings to SKYLINE 2007 B.V.'s issue of EUR3m floating-rate notes: -- EUR162.00 million Class B: 'AA' -- EUR2539.50 million Class A: 'AAA' -- EUR121.50 million Class D: 'BBB' -- EUR133.50 million Class C: 'A' -- EUR43.50 million Class E: 'BB' -- EUR24.00 million Class F: 'NR' The final ratings are contingent upon the receipt of final documents conforming to information already received. This transaction is a EUR3bn cash flow securitization of a pool of small commercial mortgage loans originated by FGH Bank N.V., a wholly owned subsidiary of Rabobank Group. The initial portfolio consists of 625 obligors, which are secured by more than 4,500 commercial real estate properties in the Netherlands. The transaction benefits from structural protection via a principal deficiency ledger to trap excess margin from the time a loan has experienced a loss. Additional excess spread will be trapped in the reserve for expected losses at the time of default. The expected ratings on the class A to E notes address timely payment of interest and the repayment of principal by legal final maturity on the class A to E notes in accordance with the terms and conditions of the documentation. The expected ratings are based on the quality of the collateral, available credit enhancement, the financial structure of the transaction, the underwriting and servicing of the collateral and the transaction's legal structure. CE provided by subordination for the class A notes totals 16.15% and is provided by the class B notes (5.40%), the class C notes (4.45%), the class D notes (4.05), the class E notes (1.45%) and the unrated class F notes (0.80%). The credit enhancement provided by the subordination for class B, C, D and E notes is 10.75%, 6.30%, 2.25% and 0.80% respectively. The scheduled maturity of all classes of notes is July 2042 and the legal maturity is July 2044. TEMIR CAPITAL: Fitch Places BB- Rating on US$1.2-Billion Bonds -------------------------------------------------------------- Fitch Ratings has assigned Temirbank's and Temir Capital B.V.'s new US$1.2 billion global medium-term note program final ratings of Long-term 'BB-' (for senior unsecured notes with maturities in excess of one year) and Short-term 'B' (for senior unsecured notes with maturities of less than one year). It has also assigned a final Long-term 'BB-' rating to TCB's recent US$500 million 9.5% issue due May 2014, which is the first draw-down under the program. Temir is rated Issuer Default 'BB-'/Stable, Short-term 'B', Individual 'D/E' and Support '3'. Temir's IDR, Short-term and Support ratings are based on a moderate probability of support forthcoming from its parent, Bank TuranAlem (rated IDR 'BB+' with a Positive Outlook), one of the two largest banks in Kazakhstan. BTA acquired a 51% stake in Temir in December 2006. Temir was one of the 10 largest banks in Kazakhstan, but held a modest 2% of the system's assets at end-2006. In 2005, the bank's newly appointed senior management refocused its strategy towards aggressive growth in retail lending, in particular mortgages, home equity and car loans. =============== P O R T U G A L =============== TAPE BORROWER: Moody's Junks Rating on Sr. Secured Term Loan C -------------------------------------------------------------- Moody's Investors Service assigned B2 ratings to Tape Borrower Inc.'s (the new parent company of Intertape Polymer Group) proposed term loan B and revolving credit facility. In a related action, Moody's assigned a Caa2 to Tape Borrower Inc.'s proposed term loan C. The former B3 corporate family rating at Intertape Polymer Group has been withdrawn and reassigned to Tape Borrower Inc. The company's outlook was revised to stable from negative and the SGL rating was upgraded to SGL-3 from SGL-4. The rating action reflects Intertape Polymer Group's recent announcement that Tape Borrower Inc., an indirect wholly owned subsidiary of Littlejohn Fund III L.P., will acquire all of Intertape Polymer Group's outstanding common shares at a price of US$4.76 per share in cash. The total transaction value is approximately US$510 million, including US$320 million of debt. The transaction will be subject to the approval of two-thirds of the votes cast by the company's shareholders at a special meeting anticipated in late June 2007. Proceeds from the term loans will be used to repay existing bank debt, partly finance the acquisition, and pay other fees and expenses. Assignments: * Issuer: Tape Borrower Inc. -- Corporate Family Rating, Assigned B3; -- Senior Secured Term Loan B, Assigned B2 and a range of 33-LGD3; -- Senior Secured Term Loan C, Assigned Caa2 and a range of 85-LGD5; -- Senior Secured Revolving Credit Facility, Assigned B2 and a range of 33-LGD3; -- Probability of Default Rating, Assigned B3; -- Speculative Grade Liquidity Rating, Assigned SGL-3; -- Outlook, Assigned Stable. Despite the roughly US$80 million increase in debt as a result of the acquisition by Littlejohn, Moody's revised the company's outlook to stable due to its improved liquidity position and the expectation that its new private equity owner will have a greater chance of stabilizing or improving the company's operating performance than prior management. The B3 corporate family rating reflects the company's weak operating performance (operating margins of approximately 3%), limited free cash flow, limited top line growth, a high percentage of commodity products versus innovative products, the potential for additional near-term declines in certain product demand, high leverage (adjusted debt to EBITDA of approximately 5.5x), and exposure to fluctuating raw material costs. Littlejohn will be inserting an interim CEO to manage the company and has undertaken a search for the position. Based on the company's recent operating trends, management will need to continue executing cost savings initiatives to improve profitability over the near term. Moody's believes that the company will need to demonstrate that the competition across its end markets will not continue to force the company to lower prices in order to maintain market share. Volume and price declines in 2006 have negatively affected Intertape Polymer Group's gross margins for certain products. Weak end market demand, primarily in the North American housing construction market, and declining prices for films products continue to compress gross margins. In order to mitigate the margin compression, Intertape Polymer Group announced and executed manufacturing facility closures and other restructuring actions to generate significant annual savings. Certain of these savings have already been realized in prior periods as the company begins to realign its cost structure with product demand. Even with this progress, Moody's believes that a combination of a slowdown in the economy and competitive pressures could continue to adversely impact the company's operating performance and offset much of the planned cost savings. Moody's also concluded that a B3 corporate family rating is most representative of a company with an evolving financial/operating strategy, a new senior management team in a highly levered environment, and new private equity sponsorship. Should margin improvement occur, Moody's expects that Intertape Polymer Group will consider distributions to its sponsor as well as modest debt-financed acquisitions to fund external growth. Factors that support the ratings include product breadth, the company's estimated market share for several of its product lines within the tapes sector, a reasonable track record of passing through higher raw material costs to customers, and its recent cost saving initiatives. The speculative grade liquidity rating was upgraded to SGL-3 from SGL-4 because Moody's believes the company's liquidity position, which weakened in 2006 due to the need to renegotiate financial covenants, will improve over the near term. The new credit agreement reduces financial covenants to a single leverage ratio and should provide adequate headroom over the next four quarters. Furthermore, Moody's expects that the company will most likely continue to utilize its bank revolver to help support operational needs. Although the outlook is stable, a sustained deterioration in operating performance or credit metrics due to additional declines in product demand, or other operational issues could result in a downgrade of the ratings. Conversely, the ratings could be raised if the company successfully resolves its CEO succession plan, continues to generate savings from additional cost reduction efforts, and restores operating margins and adjusted RCF-Capex/Debt of 5% on a sustainable basis. The most recent prior rating action occurred on March 26, 2007. Moody's downgraded the long-term and corporate family ratings of IPG (U.S.) Inc. as well as the senior subordinated notes of Intertape Polymer U.S. Inc. The rating action reflected the same key rating drivers mentioned above, however the outlook was revised to negative. The negative outlook reflected the limited room under financial covenants in its secured facilities and the lack of definitive information with respect to the CEO succession plan or the outcome of the Board's review process concerning various strategic and financial alternatives. Headquartered in Bradenton, Florida, Tape Borrower Inc., the new parent company of Intertape Polymer Group, is a leading manufacturer and marketer of adhesive tapes, specialty tapes, plastic films and engineered coated products. The company employs about 2450 employees with operations in 18 locations, including 13 manufacturing facilities in North America, one in Portugal and in Mexico. =========== R U S S I A =========== AGRO-SERVICE OJSC: Creditors Must File Claims by June 19 -------------------------------------------------------- Creditors of OJSC Agro-Service have until June 19 to submit proofs of claim to: A. Kirillov Insolvency Manager S.-Shedrina Str. 30 150014 Yaroslavl Russia The Arbitration Court of Yaroslavl will convene at 10:00 a.m. on July 3 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A82-1770/07-3-B/14. The Debtor can be reached at: OJSC Agro-Service Yaroslavlskaya Str. 48 Danilov Yaroslavl Russia AGRO-SNAB-SERVICE: Court Names V. Doluda as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Orel appointed V. Doluda as Insolvency Manager for OJSC Agro-Snab-Service. He can be reached at: V. Doluda Office 32 Gorkogo Str. 45 302040 Orel Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Court will convene at 9:30 a.m. on Sept. 5 to hear the company's bankruptcy supervision procedure. The Case is dockected under Case No. A48-1225/ 07-17B. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: OJSC Agro-Snab-Service Mashinostroitelnaya Str. 19 Druzhnyj 302008 Orel Russia AMBER CJSC: Creditors Must File Claims by July 19 --------------------------------------------------------------- Creditors of CJSC Amber have until July 19 to submit proofs of claim to: A. Volchkov Insolvency Manager 3rd Kurskaya Str. 15 Orel Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-5315/06-206. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: CJSC Amber Oktyabrskaya Str. 27 Orel Russia ANAR CJSC: Moscow Court Names A. Kubasov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed A. Kubasov as Insolvency Manager for CJSC Anar. He can be reached at: A. Kubasov Post User Box 183 127018 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-42963/06-101-758B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Anar Room 107 Vernadskogo Str. 86 Moscow Russia BOGATYREVSKOYE CJSC: Asset Sale for June 13 ------------------------------------------- The insolvency manager and bidding organizer for CJSC Bogatyrevskoye, will open a public auction for the company's properties at 10:00 a.m. on June 13 at: The Insolvency Manager and Bidding Organizer Conference Hall 3rd floor Frunze Str. 96A Tomsk Russia The company has set a RUR3,486,000 as starting price for the auctioned assets. Interested participants must deposit an amount equivalent to 20% (RUR697,200) of the starting price to: CJSC Bogatyrevskoye Settlement Account 40702810164000000048 Correspondent Account 30101810300000000711 BIK 0469202711 Tomskiy RF OJSC Rosselkhozbank Tomsk Bidding documents must be submitted to: The Insolvency Manager and Bidding Organizer Conference Hall 3rd floor Frunze Str. 96A Tomsk Russia The Debtor can be reached at: The Insolvency Manager and Bidding Organizer Conference Hall 3rd floor Frunze Str. 96A Tomsk Russia GAGARIN-SEL-KHOZ-KHIMIYA: Creditors Must File Claims by June 19 --------------------------------------------------------------- Creditors of LLC Gagarin-Sel-Khoz-Khimiya have until June 19 to submit proofs of claim to: D. Kuzmenkov Temporary Insolvency Manager Office 300 Lenina Str. 13 Gagarin 215010 Smolensk Russia The Arbitration Court of Smolensk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 62-82/2007 (1242/N). The Debtor can be reached at: LLC Gagarin-Sel-Khoz-Khimiya 9th Tupik Gagarin Smolensk Russia GORNO-SPETS-STROY: Creditors Must File Claims by July 19 -------------------------------------------------------- Creditors of OJSC Gorno-Spets-Stroy have until July 19 to submit proofs of claim to: S. Suvorov Insolvency Manager Post User Box 183 127018 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-22833/06-103-291 B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Gorno-Spets-Stroy Building 1 Gasheka Str. 2/18 125047 Moscow Russia NOVGOROD-KHLEB-PROM: Creditors Must File Claims by June 19 ---------------------------------------------------------- Creditors of CJSC Company Novgorod-Khleb-Prom (TIN 5321037682) have until June 19 to submit proofs of claim to: A. Tsybin Insolvency Manager Post User Box 27 Post Office -1 173001 Velikij Novgorod Russia The Arbitration Court of Novgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A44-2621/02-S4-K. The Debtor can be reached at: CJSC Company Novgorod-Khleb-Prom Rogatitsa Str. 14 Velikij Novgoro Russia PETROPAVLOVSKIY CREAMERY: Creditors Must File Claims by June 19 --------------------------------------------------------------- Creditors of LLC Petropavlovskiy Creamery have until June 19 to submit proofs of claim to: A. Vampilov Insolvency Manager Borsoeva Str. 29 Ulan-Ude 670000 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10-974/07. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Republic Russia The Debtor can be reached at: LLC Petropavlovskiy Creamery Pionerskaya Str. 19 Petropavlovka Dzhidinskiy 671920 Bashkortostan Russia PONOMAREVKA-TRANS CJSC: Creditors Must File Claims by July 19 ------------------------------------------------------------- Creditors of OJSC Ponomarevka-Trans have until July 19 to submit proofs of claim to: Y. Ustimova Insolvency Manager Turkestanskaya Str. 10A 460024 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-12672/06-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Ponomarevka-Trans Gagarina Str. 103 Ponomarevka Ponomarevskiy Orenburg Russia PROM-STROY-DETAIL: Creditors Must File Claims by July 19 -------------------------------------------------------- Creditors of LLC Prom-Stroy-Detail have until July 19 to submit proofs of claim to: D. Bykovskikh Insolvency Manager Post User Box 3167 460001 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-2143/07-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: LLC Prom-Stroy-Detail Pilyugonskoye Shosse 5 Buguruslan Orenburg Russia SAYANSK-AGRO-PROM-TRANS: Bankruptcy Hearing Slated for Sept. 5 -------------------------------------------------------------- The Arbitration Court of Krasnoyarsk will convene at 10:00 a.m. on Sept. 5 to hear the bankruptcy supervision procedure on OJSC Motor Transport Enterprise Sayansk-Agro-Prom-Trans. The case is docketed under Case No. A33-4138/2007. V. Gordeev Insolvency Manager Partizana Zheleznyaka Str. 17 660133 Krasnoyarsk Russia The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Russia The Debtor can be reached at: OJSC Motor Transport Enterprise Sayansk-Agro-Prom-Trans Komsomolskaya Str. 135 Aginskoye Sayanskiy 663580 Krasnoyarsk Russia STROY-DETAIL CJSC: Creditors Must File Claims by July 19 -------------------------------------------------------- Creditors of CJSC Stroy-Detail (OGRN 1027101483749) have until July 19 to submit proofs of claim to: A. Klepikov Insolvency Manager Arsenalnaya Str. 1d 300002 Tula Russia The Arbitration Court of Tula commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-620/B-06. The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: CJSC Stroy-Detail Dubovskaya Str. 15 Uzlovaya 301650 Tula Russia TULA-TRANS-SERVICE: Tula Bankruptcy Hearing Slated for Aug. 2 ------------------------------------------------------------- The Arbitration Court of Tula commenced bankruptcy supervision procedure on OJSC Tula-Trans-Service. The case is docketed under Case No. A68-658/07-36/B-07. The Temporary Insolvency Manager is: E. Rusakova Arsenalnaya Str. 1d 300002 Russia Tula The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: OJSC Tula-Trans-Service Aleksinskoe Shosse 1-A Tula Russia VNESH-TORG-INVEST: Creditors Must File Claims by June 19 -------------------------------------------------------- Creditors of LLC Vnesh-Torg-Invest have until June 19 to submit proofs of claim to: O. Zyryanova Insolvency Manager Post User Box 1 Biysk-19 659319 Altay Russia The Arbitration Court of Altay will convene on Sept. 17 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A02-168/2007 g. The Debtor can be reached at: LLC Vnesh-Torg-Invest Post User Box 1 Biysk-19 659319 Altay Russia YUKOS OIL: Lack of Bids Cues Auctioneer to Cancel June 7 Sale ------------------------------------------------------------- The Russian Federal Property Fund has canceled the June 7 auction of OAO Yukos Oil Co.'s media and transport assets due to a lack of bids, published reports say. "Not a single application was filed during the application acceptance period from May 7 through June 5," the federal property fund is cited by RIA Novosti as saying. The lot carried an RUR8.95 billion (US$346 million) starting price with an RUR89.49 million bid increment. 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 $9.35 billion, as payment for $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 $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 $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: Unitex Finalizes Purchase of Petrol Station Network -------------------------------------------------------------- OOO Unitex has signed a deal finalizing the purchase of OAO Yukos Oil Co.'s retail network after it fully paid RUR12.46 billion (US$483.5 million) on May 25, RIA Novosti reports. In a TCR-Europe report on May 11, 2007, Royal Dutch Shell and TNK-BP Holding Ltd. lost out to little-known Unitex in a bid to acquire Yukos' 537 petrol stations in Russia at a May 10 auction. Unitex offered RUR12.4 billion or $484.3 million for the lot, 62% more than the RUR7.7 billion price tag set by the auctioneer. RIA Novosti has linked Unitex with Russia's largest independent natural gas producer Novatex. 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 $9.35 billion, as payment for $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 $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 $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 W I T Z E R L A N D ===================== B + B BERG: Creditors' Liquidation Claims Due June 22 ----------------------------------------------------- Creditors of JSC B + B Berg & Berg have until June 22 to submit their claims to: Helmut Berg Liquidator Alte Schulstr. 3 8608 Bubikon Hinwil ZH Switzerland The Debtor can be reached at: JSC B + B Berg & Berg Bubikon Hinwil ZH Switzerland DUSS FREDY: Claims Registration Period Ends June 18 --------------------------------------------------- The Bankruptcy Court of Lucerne commenced bankruptcy proceedings against JSC Duss Fredy Architektur on May 7. Creditors have until June 18 to file their written proofs of claim. The Bankruptcy Service of Lucerne can be reached at: Bankruptcy Service of Lucerne 6011 Kriens LU Switzerland The Debtor can be reached at: JSC Duss Fredy Architektur Grubenstrasse 7 6014 Littau LU Switzerland FONTANA LAGERTECHNIK: Claims Registration Period Ends June 21 ------------------------------------------------------------- The Bankruptcy Court of Thurgau commenced bankruptcy proceedings against JSC Fontana Lagertechnik on April 13. Creditors have until June 21 to file their written proofs of claim. The Bankruptcy Service of Thurgau can be reached at: Bankruptcy Service of Thurgau 8510 Frauenfeld TG Switzerland The Debtor can be reached at: JSC Fontana Lagertechnik Wangistrasse 32 8355 Aadorf 8510 Frauenfeld TG Switzerland MARTIN SCHUMACHER: Creditors' Liquidation Claims Due June 21 ------------------------------------------------------------ Creditors of JSC Martin Schumacher have until June 21 to submit their claims to: Martin Schumacher Liquidator Speerstrasse 24 8805 Richterswil Horgen ZH Switzerland The Debtor can be reached at: JSC Martin Schumacher Wadenswil Horgen ZH Switzerland MODE ATELIER2: Creditors' Liquidation Claims Due June 25 -------------------------------------------------------- Creditors of JSC Mode Atelier2 have until June 25 to submit their claims to: Armin Thaler Liquidator Grenzstrasse 24 P.O. box 9430 St. Margrethen Wahlkreis Rheintal SG Switzerland The Debtor can be reached at: JSC Mode Atelier2 Losone Locarno TI Switzerland NIGHTHAWK RADIOLOGY: Moody's Assigns Ba3 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service assigned ratings to NightHawk Radiology Holdings, Inc. in connection with the pending refinancing of NightHawk's indebtedness related to its recent acquisition of The Radlinx Group. Moody's assigned a Ba3 Corporate Family Rating, a Ba3 rating to the proposed US$75 million senior secured term loan, a Ba3 rating to the proposed US$25 million senior secured delayed draw term loan and a Speculative Grade Liquidity rating of SGL-2. The rating outlook for NightHawk is stable. On April 9, 2007, NightHawk announced that it had purchased The Radlinx Group for US$53 million with the objective of expanding its teleradiology holdings. Radlinx is the third largest U.S. provider of such services. The acquisition expands NightHawk's customer basis by 303 hospitals, to more than 1,300 hospitals, or roughly 24% of the U.S. hospital market. Moody's assigned these proposed ratings: -- US$75 million senior secured term loan due 2014, rated Ba3 (LGD3, 32%); -- US$25 million senior secured delayed draw term loan due 2014, rated Ba3 (LGD3, 32%); -- Corporate Family Rating, rated Ba3; -- Probability of Default Rating, rated B1; -- Speculative Grade Liquidity Rating, rated SGL-2; -- The ratings outlook is stable. The Corporate Family Rating of Ba3 acknowledges NightHawk's sound profitability and resulting strong financial metrics. The rating is also supported by the company's leading market position in the nighttime and off-hours teleradiology space and generally favorable fundamentals for the industry in terms of expected growth in organic scan volume over the near to medium-term as well as the potential for inroads into the day read overflow market and sub-specialty areas. Industry dynamics are also favorable given that NightHawk does not present any direct government reimbursement risk. The ratings are constrained by the company's small size, the lack of a material track-record within the industry space, the assimilation risk posed by the Radlinx acquisition as well as the lack of an external liquidity source. The outlook is stable, reflecting Moody's belief that NightHawk will continue to grow revenues at a double-digit pace fueled primarily by anticipated growth in the volume of reads, a factor that reflects the favorable industry fundamentals enumerated above. Moody's also assume that the firm will continue to take a conservative approach to acquisitions with acquired entities broadening the company's already leading market share. In the event that a major acquisition or share repurchase adds material debt the expectation is that NightHawk will utilize cash flow to rapidly de-lever in a disciplined manner. Moody's has assigned a Speculative Liquidity Rating of SGL-2, reflecting the company's good liquidity position together with our belief that over the next 12 months, NightHawk will be able to fund its ordinary working capital, capital expenditures and other cash requirements through operating cash flow and cash on its balance sheet. Moody's acknowledges that the company lacks an external liquidity source, a situation that is mitigated by the fact that the company's cash balances are substantial. The ratings could come under downward pressure if the company undertakes a major acquisition or share repurchase that results in a material leveraging of the balance sheet such that adjusted total debt to EBITDA exceeds 4.5 times. The ratings could also be downgraded in the event that revenue growth slows with a concomitant weakening of margins, resulting in a ratio of EBIT to interest declining to below 1.8 times on a sustained basis. The ratings could move upward if the company achieves an EBIT to interest coverage ratio of 4.5 times or better on a sustained basis or if it maintains FCF to adjusted debt in excess of 15% on a sustained basis. Headquartered in Coeur d'Alene, Idaho, NightHawk Radiology Holdings, Inc. is the leading provider of professional radiology solutions in the U.S. Encompassing a team of U.S. board certified, state-licensed and hospital-privileged physicians, NightHawk services medical groups twenty-four hours a day, seven days a week at over 1,350 hospitals in the U.S. from centralized facilities located in Switzerland, Australia and the U.S. The company reported revenues of approximately US$92 million for the year ended Dec. 31, 2006. ROBERT KALHOFER: Basel Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Arlesheim in Basel commenced bankruptcy proceedings against LLC Robert Kalhofer on April 17. The Bankruptcy Service of Arlesheim can be reached at: Bankruptcy Service of Arlesheim 4144 Arlesheim BL Switzerland The Debtor can be reached at: LLC Robert Kalhofer Hinterlindenweg 4 4153 Reinach BL Switzerland ROPA ENTERTAINMENT: Creditors' Liquidation Claims Due June 25 ------------------------------------------------------------- Creditors of LLC ROPA Entertainment have until June 25 to submit their claims to: Eidmattstrasse 46 8032 Zurich Switzerland The Debtor can be reached at: LLC ROPA Entertainment Zurich Switzerland SCREEN JSC: Creditors' Liquidation Claims Due June 22 ----------------------------------------------------- Creditors of JSC Screen have until June 22 to submit their claims to: Dr. Albrecht Langhart Liquidator BLUM Rechtsanwalte Usteristrasse 14 8021 Zurich Switzerland The Debtor can be reached at: JSC Screen Zurich Switzerland VENUS TRADE: Creditors' Liquidation Claims Due June 25 ------------------------------------------------------ Creditors of LLC Venus Trade have until June 25 to submit their claims to: Anaconda Ltd liab.Co Liquidator Industriestrasse 47 6300 Zug Switzerland The Debtor can be reached at: LLC Venus Trade Zug Switzerland ============= U K R A I N E ============= ASTORIYA CJSC: Claims Filing Deadline Set June 14 ------------------------------------------------- Creditors of CJSC Astoriya (code EDRPOU 24527586) have until June 14 to submit their proofs of claim to: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2/89-07-3746. LIGO LLC: Claims Filing Deadline Set June 14 -------------------------------------------- Creditors of LLC Ligo(code EDRPOU 31732475) have until June 14 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/882-b. The Debtor can be reached at: LLC Ligo Lunacharsky Str. 24 02002 Kiev Ukraine L.V.E. LLC: Claims Filing Deadline Set June 14 ---------------------------------------------- The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/797-b. Creditors of LLC L.V.E. (code EDRPOU 32306915) have until June 14 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC L.V.E. Petr Zaporozhets Str. 14 02134 Kiev Ukraine NIVA LLC: Creditors Must File Claims by June 14 ----------------------------------------------- Creditors of Agricultural LLC Niva have until June 14 to submit their proofs of claim to: Victor Dengubov Liquidator Apartment 5 Kiev Str. 23 Znamianka 27400 Kirovograd Ukraine The Economic Court of Kiev commenced bankruptcy supervision procedure on the company on April 18. The case is docketed under Case No. 11/29. The Court is located at: The Economic Court of Kirovograd Lunacharski Str. 29 25006 Kirovograd Ukraine The Debtor can be reached at: Agricultural LLC Niva Makarika Znamianka District 27427 Kirovograd Ukraine REPAIR-TRANSPORT ENTERPRISE: Claims Filing Deadline Set June 13 --------------------------------------------------------------- Creditors of OJSC Repair Transport Enterprise (code EDRPOU 20419103) have until June 13 to submit their proofs of claim to: Leonid Shyshkin Liquidator Cherniakhovsky Str. 20A Apartment 19 10014 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 7/24-b. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: OJSC Repair Transport Enterprise 1st Ippodromny Lane 15A 10000 Zhytomir Ukraine SLOVGRES LLC: Claims Filing Deadline Set June 14 ------------------------------------------------ Creditors of LLC Slovgres have until June 14 to submit their proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2/82-07-3447. TOREZ MACHINEBUILDING: Creditors Must File Claims by June 14 ------------------------------------------------------------ Creditors of OJSC Torez Machinebuilding Plant have until June 14 to submit their proofs of claim to: Anatoly Dmitrichenko Temporary Insolvency Manager Tcheliuskintsev Str. 107/45 83000 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 42/32B. The Court is located at: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: OJSC Torez Machinebuilding Plant Torez Shyrokaya str. 86600 Donetsk Ukraine UKRAINIAN ENERGY : Claims Filing Deadline Set June 14 ----------------------------------------------------- Creditors of LLC Project-Building Enterprise Ukrainian Energy Building have until June 14 to submit their proofs of claim to: State Tax Inspection of Dnieprovsky of Kiev Liquidator Verkhovnaya Rada Str. 24-b 02094 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/51-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Project-Building Enterprise Ukrainian Energy Building Alisher Navoi Str. 76 02125 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: Doesn't Offer Passenger Value, Survey Says ------------------------------------------------------------ British Airways plc confirmed that less than half of its workers think it offers passenger value for money, BBC News reports. According to a staff survey, only 49% agreed that travelers got a good deal for their ticket price. The survey also revealed that only 31% of employees were satisfied that they have the tools to do a good job while only 34% of workers were satisfied with the way their departments were led and managed, a 2% rise on the last survey in September 2006, BBC News relates. BA, however, said the findings were mixed, reiterating that it was committed to improving its service. "The airline has faced a number of major challenges over the past six months that have affected our customers' experiences with us, and have clearly affected our staff's opinions and perceptions," Garry Copeland, BA's engineering director, was quoted by BBC as saying. The staff survey was conducted back in March. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, Moody's Investors Service's confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported in the TCR-Europe on March 27, 2007, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. CREDIT SUISSE INT'L: Fitch Places B- Rating on US$125-Mil. Loan --------------------------------------------------------------- Fitch Ratings has assigned Credit Suisse International's upcoming US$125 million 10.125% issue of limited recourse loan participation notes due June 2010 ratings of Recovery 'RR4' and Long-term 'B-'. The notes are to be used solely for financing a loan to Ukraine-based Vseukrainsky Aksionerny Bank, which is rated Issuer Default 'B-', Short-term 'B', Individual 'D/E', Support '5' and National Long-term 'BBB-(ukr)'. The Outlooks on the IDR and National Long-term rating are Stable. The Support Rating Floor is 'No Floor'. Credit Suisse International, a UK-domiciled fully authorised bank, will only pay noteholders principal and interest received from VAB. It will charge certain rights and interests under the loan agreement to Deutsche Trustee Company Limited for the benefit of noteholders under a trust deed. Its claims under the loan agreement will rank at least equally with the claims of other senior unsecured creditors of VAB, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Ukrainian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-2006, retail deposits accounted for 28% of VAB's total liabilities, according to the bank's audited IFRS accounts. The loan agreement contains covenants restricting mergers and disposals by VAB, transactions between the bank and its affiliates and certain payments and distributions by the bank and its subsidiaries. It also contains a cross default clause and a 'negative pledge' clause, the latter of which allows for up to 25% of gross loans to customers to be securitised by VAB and its subsidiaries. Were such transactions to be undertaken, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. VAB must ensure full compliance with capital adequacy requirements of the National Bank of Ukraine and also commits to maintaining a minimum total Basel I capital adequacy ratio of 12%. Fitch also notes that the prospectus contains an additional clause specifying that the notes may be redeemed at the option of the noteholders at their principal amount, together with accrued interest to the date of redemption, following the occurrence of a put event. The latter is deemed to have occurred if TBIF Financial Services B.V.'s shareholding in VAB falls below 40% and such an event results in a rating downgrade from the current level by a rating agency. VAB is a medium-sized commercial bank with a small 1.3% share of the banking system's assets. It has a network of 150+ outlets in Ukraine. Sergey Maximov, a local entrepreneur, and TBIF, a Dutch investment company with operations in eastern Europe, hold a 49% stake each in VAB. VAB's development plan envisages a significant strategic shift to being a diversified universal bank serving individual clients and SMEs from its current corporate banking focus. EMI GROUP: Warner Music Confident on Acquiring Record Labels ------------------------------------------------------------ Despite EMI Group PLC board's recommendation to accept Terra Firma Capital Partners Ltd.'s offer, Warner Music Group Corp. still believed it could get EMI's recorded-music assets, Ethan Smith writes for the Wall Street Journal. According to the report, Warner's executives and investors may counter Terra Firma's bid, though people close to the company think that Warner will not go much higher than its original GBP2.4 billion offer. WSJ adds that even if Warner acquired EMI, antitrust regulations would require the music firm to sell the publishing house. Warner Music's alternative route in capturing EMI's record labels, which include the storied labels Capitol Records in the U.S. and Parlophone in Britain, is to strike a deal with Terra Firma to buy the record labels after the buyout firm's transaction closes, Mr. Smith relates. People close to Warner say that the positive side of waiting and making a deal with Terra Firma, is that the regulatory scrutiny in Europe on a deal to buy only EMI's record labels would probably be much less intense than on a deal to buy the entire company, WSJ relates. Mr. Smith, citing unnamed sources, said that the third option for Warner is to do nothing with EMI, on the theory that record labels have been losing revenue and value rapidly that resources might be best deployed in other kinds of deals. Mr. Smith added that the main risk to a wait-and-see approach is the possibility that a stronger bid than Terra Firma's could emerge, and there is no guarantee that the bidder would be willing to sell or that Terra Firma could change its mind or make its own changes at EMI before selling to Warner. "If I was Terra Firma, I'm not sure I'd be in a huge rush to sell this to Warner," Richard Greenfield, an analyst at New York's Pali Research was quoted by WSJ as saying. "How much more desperate does Warner become to buy EMI in a year or two?" As reported in the TCR-Europe on May 22, 2007, EMI's Board of Directors agreed to a takeover bid by Terra Firma for GBP2.4 billion, or GBP3.2 billion including debt. Warner Music Bid Prior to the announcement, Warner Music Group has sweetened its bid to acquire EMI by offering to pay a break-up fee of between GBP50 million and GBP100 million in case the European Commission blocks its planned takeover of the UK music group, Dominic White writes for The Telegraph. On March 2, 2007, EMI rejected Warner Music's GBP2.1 billion non-binding takeover bid, saying that the price of 260 pence per share in cash for EMI is inadequate. According to Mr. White of The Telegraph, EMI also cited concerns that Warner had not offered to take any of the regulatory risk in relation to the takeover. Warner Music, The Telegraph says, indicated to EMI that the break-up fee would not add to its latest bid but would only be applied if the deal were blocked. Warner adds that it is not ready to make an unconditional offer for EMI as it could potentially struggle to find a buyer for the latter's recorded music assets, The Telegraph relates. Warner Music has begun due diligence after gaining access to EMI's books last week, Emiko Terazono and Andrew Edgecliffe- Johnson of The Financial Times report. Warner Music could naturally be the home for EMI as the combined companies battle against a shrinking CD market and rampant online piracy, The Telegraph adds. Unlike a Warner Music tie-up, a private equity deal could be completed much more quickly because of the absence of regulatory risks. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. In January 2007, Moody's Investors Service downgraded EMI Group plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. Downgrade and review follow the announcement that EMI: (i) will incur up to GBP150 million in incremental restructuring costs, (ii) has performed below its expectations during its financial year-to-date, (iii) has installed Eric Nicoli, hitherto chairman of the group as CEO of EMI Group and of EMI Recorded Music and is reviewing its balance sheet. FKI PLC: Earns GBP46.6 Million in Year Ended March 31, 2007 ----------------------------------------------------------- FKI plc released unaudited financial results for the year ended March 31, 2007. FKI reported GBP46.6 million in net profit against GBP1.3 billion in revenues for the year ended March 31, 2007, compared with GBP94 million in net profit against GBP1.3 billion in revenues for the year ended March 31, 2006. At March 31, 2007, the Group's balance sheet showed GBP1.4 billion in total assets, GBP1.1 billion in total liabilities and GBP279.9 million in total stockholders' equity. About FKI PLC Headquartered in Loughborough, England, FKI PLC -- http://www.fki.co.uk/-- is an international engineering group active in the four specialized business areas: FKI Logistex, Lifting Products & Services, Hardware and Energy Technology. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors, Moody's Investors Service rating agency confirmed its Ba2 Corporate Family Rating FKI plc. Moody's also assigned a Ba2 Probability-of-Default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- EUR600M 6.625% Senior Unsecured Regular Bond/Debenture Due 2010 Ba2 LGD4 58% FORD MOTOR: Faces Breach of Contract Suit from Navistar Int'l ------------------------------------------------------------- Navistar International Corporation has filed a lawsuit against Ford Motor Company for breach of contract relating to a diesel engine contract involving the Ford F-150 pickup truck. The suit, filed in the Circuit Court of Cook County, Illinois, seeks �at least hundreds of millions of dollars" worth of damages. Navistar believes that Ford intends to introduce a new diesel engine that actually was designed by International Truck and Engine Corporation, Navistar�s principal operating company. According to the lawsuit, Ford is developing a 4.4 liter diesel engine for production in North America by late 2009 or 2010 or possibly earlier and intends to produce the engine itself for use in the F-150, and possibly other vehicles. The lawsuit states that Ford cannot do that without violating its contract with Navistar. Reportedly, Ford is considering producing V8 diesel engines at a Ford facility in Chihuahua, Mexico. The lawsuit states that International spent millions of dollars and devoted years of its employees� time to develop a next generation diesel engine named �Lion" for use in vehicles including the F-150 pickup trucks in which Ford had not previously offered diesel engines. Ford agreed that International, which has been the exclusive diesel engine supplier for Ford�s heavy-duty pickup trucks since 1979, would manufacture the new diesel engines for Ford in North America. The lawsuit, filed June 4, 2007, is separate from previously reported litigation between the two companies. Earlier this year, Ford filed a lawsuit against Navistar involving 2007 engine pricing and prior period warranty claims on Power Stroke diesel engines. Navistar counter-sued, stating that pricing is consistent with contractual agreements, that the warranty claims are entirely without merit and that Ford has stopped honoring the terms of an agreement under which engines were built. Navistar amended its counter-complaint on May 2, 2007, and asked for in excess of US$2 billion in damages. International�s operating company recently launched a new 6.4L Power Stroke diesel engine for Ford that meets 2007 emissions standards while increasing performance, durability and fuel economy. About Navistar International Corp. Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. 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. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * 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. GUGGENHEIM STRUCTURED: Fitch Affirms BB Rating on Class F Notes --------------------------------------------------------------- Fitch affirms all classes of Guggenheim Structured Real Estate Funding 2005-2, Limited and Guggenheim Structured Real Estate Funding 2005-2, LLC: -- US$5,000,000 class S fixed-rate at 'AAA'; -- US$163,800,000 class A floating-rate at 'AAA'; -- US$31,300,000 class B floating-rate at 'AA'; -- US$27,300,000 class C deferrable interest floating-rate at 'A'; -- US$22,543,000 class D deferrable interest floating-rate at 'BBB'; -- US$10,700,000 class E deferrable interest floating-rate at 'BBB-'; -- US$10,000,000 class F fixed-rate at 'BB'. Guggenheim 2005-2 is a revolving commercial real estate cash flow collateralized debt obligation that closed on Aug. 25, 2005. As of the May 2007 trustee report and based on Fitch categorization, the CDO was substantially invested as follows: -- commercial mortgage whole loans/A-notes (8.2%), -- B-notes (34.5%), -- commercial real estate mezzanine loans (25.4%), -- bank loans to real estate operating companies (REBLs; 20.1%),and -- US$6.0 billion of investments. -- commercial mortgage-backed securities (CMBS;11.8%). The CDO is also permitted to invest in credit tenant lease loans and commercial real estate CDO securities. The portfolio is selected and monitored by Guggenheim Structured Real Estate Advisors, LLC. Guggenheim 2005-2 has a five-year reinvestment period during which, if all reinvestment criteria are satisfied, principal proceeds may be used to invest in substitute collateral. The reinvestment period ends in August 2010. Collateral Asset Manager Guggenheim Structured Real Estate, through its two private equity funds, is a private investor in commercial real estate debt, specializing in high-quality income-producing U.S. properties with experienced sponsorship. GSRE funds are managed by GSREA. Both the funds and GSREA are affiliated with Guggenheim Partners, LLC, a diversified financial services firm with more than 525 employees and over USUS$125 billion of assets under supervision. The two GSRE equity funds have over US$1.1 billion of private equity and have made approximately None of the funds' investments have had losses or delinquencies. Fitch rates GSREA as a 'CAM2' U.S. Commercial Real Estate CDO Asset Manager. GSREA has ten experienced real estate and investment professionals on staff, three of whom have prior commercial real estate loan workout experience. GSREA benefits from its affiliation with GP with respect to real estate markets information flow, CDO administration, and back office support. Generally, GSRE investments are serviced by rated CMBS servicers. Performance Summary Guggenheim 2005-2 closed and became effective on Aug. 25, 2005. Since Fitch's last review in August 2006, the as-is poolwide expected loss has improved slightly to 22.125% from 22.750%. The CDO has above average reinvestment flexibility relative to other CRE CDOs with 15.875% of cushion based on the modeled stressed PEL of 38.00%. Although PEL cushion is above average, the pool's weighted average spread and weighted average coupon are considered tight with 0.20% and 0.30% cushion, respectively. The Fitch PEL is a measure of the hypothetical loss inherent in the pool at the 'AA' stress environment before taking into account the structural features of the CDO liabilities. Fitch PEL encompasses all loan, property, and poolwide characteristics modeled by Fitch. The improvement in the as-is PEL is primarily due to an increase in holdings of senior secured real estate banks loans, which now comprise 20.1% of the CDO. Since Fitch's last review, the CDO has added two real estate bank loans, Intrawest (8.9%) and General Growth Properties (1.2%), and increased its position in the Toys 'R' Us senior secured credit facility to 10.0% of the portfolio. The Trizec Credit Facility (1.7%) repaid in full in October 2006. As of the last review, the securities and bank loans of the CDO, which have grown to 31.8% from 21.7% of the portfolio, have a better weighted average rating factor compared to August 2006, and remain in the 'BB-/B+' rating category. Additionally, the CDO added two commercial real estate loan assets (10.2%): the junior mezzanine position of the Lord & Taylor portfolio (5.3%) and the third mezzanine position in the Kyo-Ya/Cerberus portfolio (4.9%), replacing three assets that have repaid since the last review. The repaid assets include the Viceroy Hotel, the Marriott Waikiki, and One Beacon Street. Most of the weighted average expected losses by property type remained flat since the last review. The Fitch modeled expected loss for the office properties, however, increased as a result of the repayment of One Beacon Street, a high quality 34-story office tower located in Boston. The overall weighted average Fitch expected loss for CREL assets is therefore modestly higher than the average expected loss at the time of the last review. ISOFT GROUP: Computer Sciences Corp. Mulls Cash Offer ----------------------------------------------------- Computer Sciences Corp. issued a statement in response to requirements of the U.K. Panel on Takeovers and Mergers, which has added CSC to its Disclosure Table as a potential offeror for iSOFT Group plc. CSC confirmed that its primary objective remains a successful delivery of the NHS National Program for IT. CSC continues to review its options in light of this objective, including its contractual rights and obligations, and does not exclude the possibility of making an offer for iSOFT. There is no certainty that any offer for iSOFT will be made by CSC. Should such an offer be made, any consideration is likely to be solely in the form of cash and will not include any CSC publicly listed securities. ISOFT confirmed that it is now engaged in discussions with CSC in relation to the commercial arrangements under which CSC would take a greater role in the management of iSOFT�s work on the National Programme for IT. iSOFT also continues to seek CSC�s consent to the change in control of iSOFT that would result from the IBA Health Limited offer for iSOFT. While these discussions are in progress, iSOFT and CSC have agreed temporarily not to take further steps in court in relation to proceedings commenced on June 4, 2007, in relation to CSC withholding its consent. As previously reported in the TCR-Europe on May 31, 2007, CSC advised iSOFT that it will not provide its consent to the change of control in iSOFT, which would result from the completion of the Recommended All Share Offer to be effected by a Scheme of Arrangement under which a wholly owned subsidiary of IBA will acquire the entire issued and to be issued share capital of iSOFT. Terms of the Offer Under the terms of the Offer, iSOFT Shareholders will be entitled to receive 1.1 IBA Consideration Shares for each iSOFT Share held. IBA is listed on the Australian Securities Exchange with a market capitalization of AUS$$434 million (GBP183 million). The Offer values each iSOFT Share at 58.1 pence and the entire issued and to be issued share capital of iSOFT at approximately GBP140 million, based on the price of an IBA Share of AUS$1.255, being the closing mid-market price on the ASX on May 4, 2007 (being the last day prior to the date on which IBA was granted a trading halt for its shares by the ASX). IBA is raising new equity (as described below) and adjusted for the impact of this equity issue, the Offer values each iSOFT share at 54.7 pence and the entire issued and to be issued share capital of iSOFT at approximately GBP132 million. About iSOFT Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * In June 2006, the Group disclosed a change in accounting policy, as a consequence of which it became necessary to review revenue recognition in prior years, in order to re-state some prior year revenues. Arising out of that review, a number of possible accounting irregularities came to light in which it appears that some revenues reported in 2003/04 and 2004/05 may have been recognized earlier than they should have been. On July 20, 2006, the Group engaged its auditors, Deloitte & Touche LLP, to conduct a formal initial investigation into these possible irregularities. In August 2006, it was confirmed that there were indeed matters that needed further investigation and the company handed over relevant documents to the Financial Services Authority, which is now conducting further investigations. The Group is working closely and co-operatively with the FSA in order to complete these investigations as quickly as possible. At the current time it would be inappropriate to comment on the likely outcome. On Oct. 25, 2006, the Accountancy Investigation and Discipline Board (AIDB) disclosed that it would conduct its own investigation. The AIDB investigation is a review of the conduct of those members of accountancy bodies that are regulated by the AIDB who were executive or non-executive directors of iSOFT during the relevant periods, and RSM Robson Rhodes LLP, iSOFT's auditor for the financial years ended April 30 2003, 2004 and 2005. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial investigation into possible accounting irregularities -- conducted by the Group's current auditors, Deloitte & Touche LLP, in July and August 2006 -- did not uncover evidence that any of the current non-executive directors had any knowledge of the irregularities. On the basis of information that has come to light so far, the Group does not believe that these matters will have any impact on the current or future financial position of iSOFT. Going Concern Doubt At Oct. 31, 2006, the company's board of directors recognized that there are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. METRONET RAIL: Bank Syndicate Refuses Second Loan Waiver -------------------------------------------------------- A bank syndicate led by the European Investment Bank, which has put up GBP600 million of a GBP1.6 billion loan facility, refused to grant a second waiver to The Metronet Rail Group that would allow it to access more funding to renew the Tube, Dominic O'Connell writes for The Sunday Times. According to the report, the banks are demanding more details of cost-cutting plans, and fresh equity from Metronet�s five shareholders. In September 2006 the banks granted a six-month waiver to allow Metronet to continue to draw funds, The Sunday Times relates. A spokesman for Metronet said the group is in discussions with its shareholders and funders. However, talks remain confidential. �This is a long process � and it will take time to complete � and a large recovery of funds is expected from London Underground." the spokesman was quoted by The Sunday Times as saying. Meanwhile, Metronet has appointed Deloitte's help with an extraordinary review over cost overruns, Reuters reports. As previously reported in the TCR-Europe on May 28, 2007, Metronet may opt for an extraordinary review to resolve the issue of massive cost overruns if talks with London Underground management fail to reach a deal. A commercial settlement with London Underground management to cover the extra costs of upgrading the stations seems unlikely, AFX News reports citing Metronet Chairman Graham Pimlott. Metronet revealed the financial overrun is higher than the projected GBP750 million in November 2006. It is said to have escalated to around GBP1 billion, The Guardian relates. The Guardian says Metronet could face insolvency if PPP Arbiter Chris Bolt orders the company to meet the majority of the overspend and investors refuse to pay. However, Metronet reiterated that its shareholders had no intention of walking away. About Metronet The Metronet Rail Group -- http://www.metronetrail.com/-- is responsible for upgrading, replacing and maintaining two-thirds of London Underground's infrastructure - its trains, stations, signalling, track, tunnels and bridges - under a 30-year Public Private Partnership (PPP) contract which came into operation in April 2003. The Metronet Rail Group's shareholders are Atkins, Balfour Beatty, Bombardier Transportation, EDF Energy and Thames Water who bring together an unrivalled expertise in project management and planning, railway engineering and asset management supported by a wide range of technical disciplines. They formed the Metronet Rail Group in June 1999 to bid for two of the three infrastructure companies - these are today known as: Metronet Rail BCV Limited, Metronet Rail SSL Limited. Metronet Rail BCV Limited is responsible for the Bakerloo, Central, Victoria and Waterloo & City lines which are the 'deep Tube' lines running under the streets of London. Metronet Rail SSL Limited is responsible for the Metropolitan, District, Circle, Hammersmith & City and East London lines which are collectively known as the sub-surface lines. * * * As reported in the TCR-Europe on May 10, 2007, Moody's Investors Service downgraded to Ba1 from Baa3 the senior secured unguaranteed debt ratings of both Metronet Rail BCV Finance plc and of Metronet Rail SSL Finance plc. Moody's said the ratings have been placed on review for further downgrade. NOVELIS CORP: Moody's Rates US$860 Mil. Gtd. Sr. Notes at Ba2 ------------------------------------------------------------- Moody's Investors Service confirmed certain ratings of Novelis Inc. and its subsidiary, Novelis Corporation, following the completion of the company's acquisition by Hindalco Industries Ltd., one of India's largest non-ferrous metals companies, and the introduction of Novelis's new debt structure. This concludes the review of Novelis's ratings that Moody's initiated on Feb. 12, 2007. In a related rating action, Moody's assigned a Ba2 rating to Novelis's new proposed US$860 million 7-year Gtd. senior secured term loan facility. This facility will be available to Novelis Inc. and to Novelis Corporation. If the company's proposed financing concludes as planned, Moody's will withdraw the ratings on Novelis's existing Gtd. Senior Secured Term Loan B, its Gtd. Senior Secured Revolving Credit Facility and the ratings on Novelis Corporation's existing Gtd. Senior Secured Term Loan B. The outlook is stable. Moody's confirmed Novelis's B1 corporate family rating, the B1 probability of default rating, the Ba2 rating on its Gtd. Senior Secured Revolving Credit Facility, the Ba2 rating on its Gtd. Senior Secured Term Loan B, and the Ba2 rating on Novelis Corporation's Gtd. Senior Secured Term Loan B. However, Moody's downgraded to B3 from B2 the rating on Novelis's US$1.4 billion 7.25% guaranteed senior unsecured notes reflecting their relative standing in the waterfall under Moody's loss given default methodology after considering Novelis's new upsized senior secured revolver and the reduced proportion of the unsecured notes in the capital structure. At the same time, Moody's affirmed Novelis's SGL-2 speculative grade liquidity rating. Novelis's proposed financing package includes: (1) replacing its existing revolving credit facility with a new US$900 5-year guaranteed senior secured ABL revolving credit facility, which will not be rated, and (2) refinancing its amended Gtd. Senior Secured Term Loan B with a new US$860 million 7-year guaranteed senior secured term loan. The ABL will be secured by a first priority interest in most of the company's current assets and related intangibles and by a second priority interest in the collateral securing the term loan. The term loan will have a first priority interest in most of the company's fixed and intangible assets, including subsidiary capital stock, and a second position in the collateral securing the revolver. The revolver and the term loan share the same upstream subsidiary guarantees. The new ABL revolver is expected to be around US$160 million drawn upon closing, although Moody's recognizes that this amount could be higher depending on the timing of Novelis's intra-month working capital requirements. Novelis's ratings were placed under review for possible downgrade following the company's announcement that it had entered into a definitive agreement with Hindalco to be acquired in an all-cash transaction which valued Novelis at approximately US$6.0 billion including debt assumption. The ratings review was predicated on concerns that the transaction could be accompanied by an increased level of debt at Novelis in order to accomplish the acquisition. Upon closing of the transaction, total pro forma debt is expected to be US$2.6 billion, a nominal increase in outstanding debt from the end of the first quarter. Novelis's B1 corporate family rating continues to reflect its substantive position in the aluminum rolled products markets, with dominant market positions in key areas served: can sheet, transportation, construction and industrial, and foil products, the company's global operating footprint, free cash flow generating capability, and debt reduction performance since its spin-off from Alcan. However, Novelis's ratings also recognize the ongoing performance difficulties resulting from its remaining, although declining, exposure to certain can contracts with price ceilings (which are below the current aluminum prices), the company's relatively high leverage, the sensitivity of its earnings to volume levels given the level of fixed costs in business, and the more negative than expected impact from the differential between used beverage can prices and primary aluminum prices (which impacts the company's expected internal hedge position). The rating also reflects Moody's concerns that Novelis's cash flows could be negatively impacted should its ultimate parent, Hindalco, elect to withdraw cash via upstream dividends to service its own debt burden. However, Moody's notes that the documentation for Novelis's unsecured notes contains restricted payments language which impairs Hindalco's ability to withdraw substantive cash levels from the company. Moody's affirmation of Novelis's SGL-2 speculative grade liquidity rating reflects the company's good liquidity position, characterized by expectations for positive free cash flow generation over the next year, manageable expenditures, and sufficient availability under its new proposed US$900 million ABL revolving credit facility (estimated at around US$500 million at closing). Moody's also expects Novelis to benefit from lower exposure to can sheet contract price ceilings relative to 2006, which should translate into improved earnings and cash flow performance. Downgrades: * Issuer: Novelis Inc. -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3, LGD5, 76% from B2 LGD 5, 74%. Assignments: * Issuer: Novelis Inc. -- Senior Secured Bank Credit Facility, Assigned a Ba2, LGD 2, 24%. Confirmations: * Issuer: Novelis Corporation -- Senior Secured Bank Credit Facility, Confirmed at Ba2, LGD 2, 24%. * Issuer: Novelis Inc. -- Corporate Family Rating, Confirmed at B1; -- Probability of Default Rating, Confirmed at B1; -- Senior Secured Bank Credit Facility, Confirmed at Ba2, LGD 2, 24%. Outlook Actions: * Issuer: Novelis Corporation -- Outlook, Changed To Stable From Rating Under Review * Issuer: Novelis Inc. -- Outlook, Changed To Stable From Rating Under Review Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. SCOTTISH RE: Fitch Lifts Issuer Default Rating to BB- from B+ ------------------------------------------------------------- Fitch Ratings has upgraded Scottish Re Group Ltd.'s (NYSE: SCT) Issuer Default Rating to 'BB-' from 'B+' and the Insurer Financial Strength ratings of its primary operating subsidiaries to 'BBB-' from 'BB+'. The ratings have been removed from Rating Watch Positive; the Rating Outlook is Stable. The upgrade and removal from Rating Watch (where it was placed on May 8, 2007) reflect the very strong capital position and much improved liquidity following the completion of the US$560 million (net of expenses) investment transaction with MassMutual Capital Partners LLC, and Cerberus Capital Management, L.P. Fitch estimates SCT's pro forma combined risk-based capital was 376% with securitizations and 345% excluding securitizations at March 31, 2007, which exceeds Fitch's rating expectations. The company's liquidity position is much improved. Approximately US$275 million of the proceeds of the investment were used to repay the Stingray Pass-Through Trust thus freeing up this US$325 million facility for standby liquidity. SCT expects to finalize a financing facility of US$555 million that will cover its Regulation XXX collateral financing needs for new business written in 2005 and 2006. Excess funds from the financing are expected to provide adequate liquidity over the 2007-2009 planning period. As first-quarter earnings performance and 2007 guidance reflect, SCT continues to face uncertainties with regard to its business and operating profile, following the liquidity crisis that led to the MMC/Cerberus investment. Further, the company is actively recruiting to fill a number a senior management positions vacated since the close of the transaction. Both prior to and as a result of the transaction, SCT has instituted actions related to strengthening of processes for in-force management and financial planning, governance and risk management, operation efficiency and management oversight. Still, the impact of these actions can only be substantiated over time through successful execution under its financial and operating plans. The Stable Outlook reflects the implementation of solid balance sheet and liquidity initiatives countered by the expectations of continued after-tax operating losses over the next 12-18 months. In order to move to a positive Outlook and higher ratings, SCT will need to demonstrate its effectiveness in restoring its operating profile and business franchise. Fitch believes that the effect of positive ratings momentum could be greater on the holding company, where notching was widened during the 2006 crisis, and will depend on positive earnings and restoring GAAP EBIT coverage levels. Fitch has upgraded and removed these ratings from Rating Watch Positive: Scottish Re Group Ltd. -- Issuer Default Rating to 'BB-' from 'B+'; -- 7.25% non-cumulative perpetual preferred stock to 'B/RR6' from 'B-/RR6'. Scottish Annuity & Life Insurance Company (Cayman) Ltd. -- IFS rating to 'BBB-' from 'BB+'. -- Scottish Re (U.S.) Inc. -- IFS rating to 'BBB-' from 'BB+'. Scottish Re Limited -- IFS rating to 'BBB-' from 'BB+'. Stingray Pass Through Trust -- US$325 million 5.902% collateral facility securities due Jan. 12, 2015 to 'BBB-' from 'BB+'. Fitch's Recovery Ratings are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. WARNER MUSIC: Believes it Can Acquire EMI's Record Labels --------------------------------------------------------- Despite EMI Group PLC board's recommendation to accept Terra Firma Capital Partners Ltd.'s offer, Warner Music Group Corp. still believed it could get EMI's recorded-music assets, Ethan Smith writes for the Wall Street Journal. According to the report, Warner's executives and investors may counter Terra Firma's bid, though people close to the company think that Warner will not go much higher than its original GBP2.4 billion offer. WSJ adds that even if Warner acquired EMI, antitrust regulations would require the music firm to sell the publishing house. Warner Music's alternative route in capturing EMI's record labels, which include the storied labels Capitol Records in the U.S. and Parlophone in Britain, is to strike a deal with Terra Firma to buy the record labels after the buyout firm's transaction closes, Mr. Smith relates. People close to Warner say that the positive side of waiting and making a deal with Terra Firma, is that the regulatory scrutiny in Europe on a deal to buy only EMI's record labels would probably be much less intense than on a deal to buy the entire company, WSJ relates. Mr. Smith, citing unnamed sources, said that the third option for Warner is to do nothing with EMI, on the theory that record labels have been losing revenue and value rapidly that resources might be best deployed in other kinds of deals. Mr. Smith added that the main risk to a wait-and-see approach is the possibility that a stronger bid than Terra Firma's could emerge, and there is no guarantee that the bidder would be willing to sell or that Terra Firma could change its mind or make its own changes at EMI before selling to Warner. "If I was Terra Firma, I'm not sure I'd be in a huge rush to sell this to Warner," Richard Greenfield, an analyst at New York's Pali Research was quoted by WSJ as saying. "How much more desperate does Warner become to buy EMI in a year or two?" As reported in the TCR-Europe on May 22, 2007, EMI's Board of Directors agreed to a takeover bid by Terra Firma for GBP2.4 billion, or GBP3.2 billion including debt. Warner Music Bid Prior to the announcement, Warner Music Group has sweetened its bid to acquire EMI by offering to pay a break-up fee of between GBP50 million and GBP100 million in case the European Commission blocks its planned takeover of the UK music group, Dominic White writes for The Telegraph. On March 2, 2007, EMI rejected Warner Music's GBP2.1 billion non-binding takeover bid, saying that the price of 260 pence per share in cash for EMI is inadequate. According to Mr. White of The Telegraph, EMI also cited concerns that Warner had not offered to take any of the regulatory risk in relation to the takeover. Warner Music, The Telegraph says, indicated to EMI that the break-up fee would not add to its latest bid but would only be applied if the deal were blocked. Warner adds that it is not ready to make an unconditional offer for EMI as it could potentially struggle to find a buyer for the latter's recorded music assets, The Telegraph relates. Warner Music has begun due diligence after gaining access to EMI's books last week, Emiko Terazono and Andrew Edgecliffe- Johnson of The Financial Times report. Warner Music could naturally be the home for EMI as the combined companies battle against a shrinking CD market and rampant online piracy, The Telegraph adds. Unlike a Warner Music tie-up, a private equity deal could be completed much more quickly because of the absence of regulatory risks. About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Europe on While it is currently uncertain whether Warner Music Group Corp. (Warner; IDR rated 'BB-' with a Stable Outlook by Fitch) will make a competing bid for EMI Group Plc (EMI), any theoretical bid for EMI would likely result in a Rating Watch Negative for Warner's ratings and its subsidiaries, according to Fitch Ratings. In a TCR-Europe report on May 25, 2007, Standard & Poor's Ratings Services said that its ratings on New York City-based Warner Music Group Corp., including its 'BB-' corporate credit rating, remain on CreditWatch with negative implications, where they were initially placed on Feb. 22, 2007, following the company's statement that it was exploring a possible merger agreement with EMI Group PLC (B+/Watch Neg/B). WARNER MUSIC: Fitch Comments on Risk of Potential Bid for EMI ------------------------------------------------------------- While it is currently uncertain whether Warner Music Group Corp. will make a competing bid for EMI Group Plc, any theoretical bid for EMI would likely result in a Rating Watch Negative for Warner's ratings and its subsidiaries, according to Fitch Ratings. EMI recently accepted an offer of approximately US$6.4 billion from private equity firm Terra Firma (including the assumption of approximately US$1.6 billion of net debt). The risks and mitigating factors of Warner making an offer have always been factored into Fitch's ratings of Warner and its subsidiaries. While the ratings on the individual debt securities would also likely be placed on Rating Watch Negative under such a scenario, Fitch points out several mitigating factors for lenders of all debt security classes within Warner. These include uncertainty regarding regulatory approval, potential cost-saving synergies, potential asset sale proceeds, and, importantly, covenant packages in existing debt documents that could make a significantly debt-financed acquisition difficult without redeeming existing debt or getting concessions from such holders. Fitch believes this last point should provide some level of protection for existing Warner and subsidiary lenders. Warner's operating subsidiary, WMG Acquisition Corp., has a secured bank facility that contains several financial covenants that would be out of compliance should Warner incur material amounts of additional debt. For example, the facility contains a maximum leverage ratio of 4.85 times, which Fitch estimates Acquisition currently has less than US$500 million additional debt capacity. Further, indentures governing Notes issued by Acquisition and its parent company, WMG Holdings Corp., contain fixed charge coverage covenants that would likely be tripped under a significantly debt-financed acquisition. While these covenants give Warner more room than the Acquisition bank facility covenants, Fitch estimates the company generally has debt capacity of less than US$1.5 billion under these covenants. The Acquisition indenture also has Restricted Payment covenants that would make it difficult for Warner to complete the transaction by raising the debt at Holdings since it must be serviced through dividends by Acquisition. By Fitch's estimates, proforma for EMI cash flows and existing debt do not improve debt capacity under any of these covenants. It should be noted that Fitch has become generally more skeptical related to covenant compliance under transformational deals, as several companies across the corporate space have subverted such protections over the last few years. However, those subversions typically related to Limitation on Secured Debt language, not financial covenants. From an operating standpoint, notwithstanding expected one-time restructuring costs, Fitch expects recent weakness in Warner's year-to-date results to be partially offset with third and fourth quarter releases. Warner has occupied several spots on the Billboard 200 top 10 over the last month, including Linkin Park's �Minutes to Midnight," which sold more first week copies than any other album released this year. Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Thailand, Philippines and the United Kingdom, among others. WINCANTON PLC: March 31 Balance Sheet Upside Down by GBP13.7 Mln ---------------------------------------------------------------- Wincanton plc released its financial results for the year ended March 31, 2007. Wincanton reported GBP23 million in net profit against GBP1.9 billion in revenues for the year ended March 31, 2007, compared with GBP22.9 million in net profit against GBP1.8 billion in revenues for for the year ended March 31, 2006. At March 31, 2007, the Group's balance sheet showed GBP737.2 million in total assets, GBP750.9 million in total liabilities and GBP13.7 in total stockholders' deficit. The Group's balance sheet at March 31, 2007, also showed strained liquidity with GBP400.2 million in current assets available to pay GBP477.9 million in total liabilities coming due within the next 12 months. Headquartered in Chippenham, England, Wincanton plc -- http://www.wincanton.co.uk/-- is a contract logistics services business, which designs, implements and operates a range of supply chain management solutions. ********* 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 * * *