/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070611.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 Monday, June 11, 2007, Vol. 8, No. 114 Headlines A U S T R I A ANDREAS NOESSLBOECK: Linz Court Orders Business Shutdown MUAREMI KEG: Claims Registration Period Ends June 25 NOESSLBOECK LLC: Linz Court Orders Business Shutdown WERBEPARTNER MARKETING: Claims Registration Period Ends June 25 WILHELM STIX: Wels Court Orders Branch Closure B E L G I U M KRATON POLYMERS: Weak Profitability Cues S&P to Lower Ratings F I N L A N D SANMINA-SCI: Intends to Offer US$600 Million of Senior Notes SANMINA-SCI: Fitch Rates Proposed US$600 Million Notes at BB+ SANMINA-SCI: S&P Rates US$600 Million Floating-Rate Notes at B+ F R A N C E ALCATEL-LUCENT: Inks Two-Year Agreement with Comcel EUROTUNNEL GROUP: CEO Plans on Raising GBP680 Mln Fresh Capital EUROTUNNEL GROUP: Names Two New Non-Executive Directors SOLECTRON CORP: Flextronics Merger Pact Cues Fitch's Pos. Watch SR TELECOM: Posts CDN$12.2 Mil. Net Loss in Qtr. Ended March 31 TCL MULTIMEDIA: Posts HK$2.5 Billion Net Loss for FY 2006 G E R M A N Y AESCULUS HEILPRAKTIKERSCHULE: Claims Registration Ends July 4 AMERICAN AXLE: Fitch Expects to Rate Senior Term Loan at BB ATAK HANDELS: Claims Registration Period Ends July 6 AUTO-GALERIE SCHUBERT: Claims Registration Period Ends July 12 BENQ CORP: Option NV Buys Mobile Unit's Laboratories & Manpower BENQ CORP: Former BenQ Mobile Managers to Hand Back Bonuses BENQ CORP: Enters Into NFC Contract with Sirit BIOMARKEN HANDELS: Claims Registration Period Ends June 30 CHIQUITA BRANDS: Colsiba Accuses Possible Covenant Breach CINE RELATION: Claims Registration Ends July 15 DAIMLERCHRYSLER: Recalls 1,443 Faulty Chinese-Made Chrysler Cars DOMUS-FLIESENLEGER: Claims Registration Ends July 13 GEORG DAUTERMANN: Claims Registration Ends July 30 GOERG GMBH: Claims Registration Period Ends July 10 GUELKAR KEBAP: Claims Registration Ends June 25 H & F SCHLACHT: Claims Registration Period Ends July 24 HARLEY-KORSO MOTORRAD: Claims Registration Period Ends July 27 HAYES LEMMERZ: Unit Completes Tender Offer for 10-1/2% Sr. Notes HEINRICH & MUELLER: Creditors' Meeting Slated for June 13 HENKE ENERGIESPARHAUS: Creditors' Meeting Slated for July 6 HOLZ GROSSHANDEL: Creditors Must Register Claims by Sept. 4 HOTEL MONDO: Creditors Must Register Claims by July 25 HOTEL STADT: Creditors Must Register Claims by July 17 LEMMA TECHNOLOGIES: Creditors Must Register Claims by June 30 LWG LANDSCHAFTSPFLEGE: Claims Registration Ends June 26 MANFRED FINKEN: Creditors Must Register Claims by July 2 NOVELIS CORP: Moody's Rates US$860 Million Senior Notes at Ba2 PRUDENTIAL EQUITY: Equity Research Operations Discontinued SPECTRUM BRANDS: A. Genito Promoted to Chief Financial Officer WALLOCH BUEROTECHNIK: Claims Registration Period Ends July 24 WOHNLAND GMBH: Claims Registration Period Ends July 13 ZINN GMBH: Claims Registration Period Ends July 12 H U N G A R Y FERENCVAROSI TORNA: May Enter Into Liquidation Procedure GUESS?: Morgan Keegan Reaffirms Outperform Rating on Firm' GUESS? INC: Earns US$35.5 Million in First Quarter Ended May 5 I T A L Y ACTUANT CORP: Prices US$250MM Senior Notes Private Placement ALGOMA ACQUISITION: Moody's Junks US$450 Million Notes ALITALIA SPA: Air One and Aeroflot Explore Possible Tie-Up DANA CORP: Court OKs Sale of Fluid Products Businesses to Orhan TK ALUMINUM: Units Begin Consent Solicitation for Senior Notes K A Z A K H S T A N ALTYN AI: Proof of Claim Deadline Slated for July 13 ARAY-KAA LLP: Creditors Must File Claims July 6 ATAKENT-TARAZ LLP: Claims Filing Period Ends July 6 SAHAT LLP: Claims Registration Ends July 6 SULAR LLP: Creditors' Claims Due July 6 TALANT 2000: Proof of Claim Deadline Slated for July 13 TORE LLP: Creditors Must File Claims July 6 TURAN LLP: Claims Filing Period Ends July 6 VEKTOR 2000: Claims Registration Ends July 6 K Y R G Y Z S T A N BESLER TEKSIL: Creditors Must File Claims by July 11 L U X E M B O U R G DELPHI CORP: Inks US$55.6 Mln Sale Deal for Catalyst Business TEKSID ALUMINUM: Begins Consent Solicitation for Senior Notes R U S S I A AKAR OJSC: Creditors Must File Claims by June 19 AURORA CJSC: Creditors Must File Claims by July 19 FENIKS CJSC: Creditors Must File Claims by June 19 FRUNZE OJSC: Creditors Must File Claims by July 19 GAZPROM NEFT: Mulls Joint Venture with Statoil ASA GUBKINO CJSC: Creditors Must File Claims by June 19 KIREEV-SEL-KHOZ-TEKHINKA: Creditors Must File Claims by June 19 MEZENSKIY SAW: Creditors Must File Claims by June 19 NOVOLIPETSK STEEL: Shareholders Okay Annual Results & Dividend OGK-5 JSC: Enel SpA Acquires 25% Stake for RUR39.2 Billion PURE WATER: Creditors Must File Claims by July 19 RASSVET LLC: Creditors Must File Claims by June 19 STROY-DETAIL OJSC: Creditors Must File Claims by June 19 TRITIKUM CJSC: Creditors Must File Claims by June 19 URAL-ENERGO CJSC: Creditors Must File Claims by July 19 VIKULOVSKIY TECHNOLOGY: Asset Sale Slated for June 20 VIMPEL-COMMUNICATIONS: Supreme Court Upholds URS Acquisition VYSHNEVOLOTSKIY TEXTILE: Creditors Must File Claims by July 19 WEST-MD OJSC: Creditors Must File Claims by July 19 S P A I N TOWER AUTOMOTIVE: Judge Gropper Approves Disclosure Statement TOWER AUTOMOTIVE: Plan Confirmation Hearing Scheduled on July 11 S W I T Z E R L A N D AMADONUM LLC: Creditors' Liquidation Claims Due July 1 ASG GASTRO: St. Gallen Court Starts Bankruptcy Proceedings ASI INSURANCE: Creditors' Liquidation Claims Due June 22 BEAT ERISMANN: Creditors' Liquidation Claims Due July 18 BUBEWO LLC: Claims Registration Period Ends June 23 NIGHTHAWK RADIOLOGY: Moody's Assigns Ba3 Corporate Family Rating NIGHTHAWK RADIOLOGY: S&P Puts Corporate Credit Rating at B+ NOVELIS CORP: Moody's Rates US$860 Million Senior Notes at Ba2 SWISSAIR: Zurich Court Acquits Defendants in Mismanagement Trial U K R A I N E AGRO-SULA LLC: Creditors Must File Claims by June 13 ALPHA-S LLC: Creditors Must File Claims by June 13 AUGUST LLC: Creditors Must File Claims by June 13 KHRISTINOVKA MIXED: Creditors Must File Claims by June 13 LVOV AGRICULTURAL: Claims Filing Deadline Set June 13 OUR HOUSE: Creditors Must File Claims by June 13 PLUS LLC: Claims Filing Deadline Set June 13 ZOLOTAYA BALKA: Claims Filing Deadline Set June 13 U N I T E D K I N G D O M ALL AMERICAN: Court OKs Asset Sale to Rock River Consortium CELESTICA INC: May Be Next Acquisition Target, Analysts Say DYNCORP INT'L: Earns US$18.9 Million in Fourth Quarter 2007 DYNCORP INT'L: Will Repurchase US$10 Mil. of Shares of Stock EUROTUNNEL GROUP: CEO Plans on Raising GBP680 Mln Fresh Capital EUROTUNNEL GROUP: Names Two New Non-Executive Directors FORD MOTOR: Navistar Files Lawsuit for Breach of Contract ISLE OF CAPRI: Has Until July 25 to Comply with Nasdaq Rules OSI RESTAURANT: Stockholders Approve Amended Merger Agreement OSI RESTAURANT: S&P Affirms Ratings and Removes Developing Watch PORTRAIT CORP: Court Sets July 11 Plan Confirmation Hearing REPRO-MED SYSTEMS: Myler & Company Raises Going Concern Doubt TOREX RETAIL: Terminates Suspended CEO Neil Mitchell TRIPOS INC: Completes Sale of R&D Biz to Commonwealth Biotech WARNER MUSIC: Strikes Deal with Lala to Drive Music Sales ********* ============= A U S T R I A ============= ANDREAS NOESSLBOECK: Linz Court Orders Business Shutdown -------------------------------------------------------- The Land Court of Linz entered May 15 an order shutting down the business of LLC Andreas Noesslboeck & Co. KG (FN 54989t). Court-appointed estate administrator Thomas Kurz recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Thomas Kurz Roseggerstr. 58 4020 Linz Austria Tel: 0732/784331-0 Fax: 0732/784331-57 E-mail: manuela.winkelmayr@haslinger-nagele.com Headquartered in Rohrbach, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No 12 S 46/07p). MUAREMI KEG: Claims Registration Period Ends June 25 ---------------------------------------------------- Creditors owed money by KEG Muaremi (FN 220348t) have until June 25 to file written proofs of claim to court-appointed estate administrator Aldo Frischenschlager at: Dr. Aldo Frischenschlager Landstrasse 15 4020 Linz Austria Tel: 0732/777238 Fax: 0732/77723811 E-mail: rae@frischenschlager-gallistl.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on July 9 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 12 S 50/07a). NOESSLBOECK LLC: Linz Court Orders Business Shutdown ---------------------------------------------------- The Land Court of Linz entered May 15 an order shutting down the business of LLC Noesslboeck (FN 190346x). Court-appointed estate administrator Thomas Kurz recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Thomas Kurz Roseggerstr. 58 4020 Linz Austria Tel: 0732/784331-0 Fax: 0732/784331-57 E-mail: manuela.winkelmayr@haslinger-nagele.com Headquartered in Rohrbach, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No 12 S 47/07k). WERBEPARTNER MARKETING: Claims Registration Period Ends June 25 --------------------------------------------------------------- Creditors owed money by LLC Werbepartner Marketing (FN 139762h) have until June 25 to file written proofs of claim to court-appointed estate administrator Roland Zimmerhansl at: Mag. Roland Zimmerhansl Harrachstrasse 6 4020 Linz Austria Tel: 65 70 70 Fax: 65 70 70 65 E-mail: zimmerhansl@anwaelte-sds.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on July 6 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 12 S 49/07d). WILHELM STIX: Wels Court Orders Branch Closure ---------------------------------------------- TheLand Court of Wels entered May 16 an order closing the Wels branch of LLC Wilhelm Stix & Co. KG (FN 25979f). Court-appointed estate administrator Martin Stossier recommended the closure after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Martin Stossier Ringstrasse 4 Plobergerstrasse 7 4600 Wels Austria Tel: 07242/42605-0 Fax: 07242/42605-20 E-Mail: stossier@ra-stossier.at Headquartered in Wels, Austria, the Debtor declared bankruptcy on May 10 (Bankr. Case No 20 S 64/07y). ============= B E L G I U M ============= KRATON POLYMERS: Weak Profitability Cues S&P to Lower Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Kraton Polymers LLC, including the corporate credit and senior secured debt ratings to 'B' from 'B+'. The outlook is negative. The downgrade follows weakened profitability primarily because of higher than expected raw material cost inflation that has resulted in the deterioration of key measures of credit quality. "While we expect management to raise prices in order to offset some of the raw material pressure, Kraton's cash flow generation is likely to remain weaker than initially expected during the next few quarters, limiting the company's ability to improve its highly leveraged financial profile back toward the level appropriate for the previous ratings," said Standard & Poor's credit analyst David Bird. The ratings on Kraton reflect its weak business risk profile derived from its narrow focus on the styrenic block copolymers market and a highly leveraged financial profile. Houston, Texas-based Kraton is a leading producer of SBCs with about US$1 billion in annual sales and approximately US$631 million of debt outstanding, including a modest amount of capitalized operating leases and unfunded postretirement obligations. The company produces unhydrogenated SBCs, hydrogenated SBCs,polyisoprene rubber, polyisoprene latex, and SBC-based compounded materials. SBCs offer flexibility, resilience, strength, and durability to a wide range of products in a number of end-use markets, including (1) adhesive, sealants, and coatings, (2) paving and roofing, (3) compounding channels, (4) packaging and films, and (5) personal care. The SBC market is part of the larger thermoplastic elastomers industry, with a market size of approximately US$3 billion and an expected future growth rate of about 6% per year. Between the two product types, faster growth is expected in HSBCs, which are used in a variety of applications such as personal hygiene and soft-grip handles. USBC growth is typically slower and is focused on mature end markets such as asphalt modification and adhesives. The company has development centers in Belgium, Brazil and Japan. ============= F I N L A N D ============= SANMINA-SCI: Intends to Offer US$600 Million of Senior Notes ------------------------------------------------------------ Sanmina-SCI Corporation intends to offer, subject to market and other conditions, US$600 million aggregate principal amount of Senior Floating Rate Notes, which will be issued in a: * US$300 million tranche due in 2010 and * US$300,000,000 tranche due in 2014, through an offering in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The notes will be fully and unconditionally guaranteed on a senior, unsecured basis by substantially all of Sanmina-SCI's domestic restricted subsidiaries. The interest rate and other terms for each series of the notes are to be determined by negotiations between Sanmina-SCI and the initial purchasers of the notes. Sanmina-SCI intends to use the net proceeds from the sale of notes in the offering, together with cash on hand, to repay its existing term loan under the Credit and Guaranty Agreement, dated as of Oct. 13, 2006, among Sanmina-SCI, its subsidiaries party thereto as guarantors, the lenders party thereto and Bank of America, as administrative agent, and to pay fees and expenses incurred in connection with the offering of the notes. The securities will not be registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. About Sanmina-SCI Corp. 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 has locations in Brazil, China, Finland, Malaysia, Mexico and Singapore, among others. SANMINA-SCI: Fitch Rates Proposed US$600 Million Notes at BB+ ----------------------------------------------------------- Fitch has assigned a 'BB+/RR1' rating to Sanmina-SCI Corporation's (Nasdaq: SANM) proposed US$600 million offering of senior unsecured floating rate notes. The two-tranche debt offering consists of US$300 million of notes due 2010 and US$300 million due 2014. Proceeds from the offering and cash on hand will be utilized to repay an existing US$600 million senior unsecured term loan and to fund related fees and expenses. The Rating Outlook is Negative. Fitch currently rates Sanmina as: -- Issuer Default Rating (IDR) at 'B+'; -- Senior secured credit facility at 'BB+/RR1'. -- Senior unsecured notes at 'BB+/RR1'; -- Senior subordinated debt at 'B/RR5'. The ratings and Negative Outlook reflect Sanmina's: -- Weak operating trends, including a nearly 3% decline in revenue for the latest 12 months ended March 31, 2007 relative to the year-ago period; -- Pressured operating EBIT margin of only 1.7% for the LTM ended March 31, 2007; -- Cash conversion cycle of 45 days in the quarter ended March 31, 2007, among the highest of Fitch-rated electronic manufacturing services companies; and -- Significantly leveraged balance sheet relative to its tier 1 competitors, resulting in the highest leverage ratio (total adjusted debt to operating EBITDA) of the group at 6.6 times (x). Fitch expects a difficult competitive environment within the EMS industry in 2007 driven by continued pricing pressure from Asian EMS and original design manufacturing vendors as well as a continued trend by original equipment manufacturers to consolidate EMS vendors, both of which could hamper efforts to improve the operating performance at Sanmina. The company is currently evaluating its strategy and position within the market and recently announced a shift in its ODM business to a joint design manufacturing model. In addition, Sanmina is considering various strategic alternatives for its low margin personal computing, low-end server and storage businesses. Actions that could potentially stabilize Sanmina's ratings include a divestiture of lower margin businesses to improve overall operating performance and/or the use of proceeds from asset divestitures to pay down debt. The Recovery Ratings and notching reflect Fitch's recovery expectations under a distressed scenario, as well as Fitch's expectation that the enterprise value of Sanmina, and hence recovery rates for its creditors, will be maximized in liquidation rather than in a going concern enterprise value scenario. In estimating Sanmina's liquidation value under a distressed scenario, Fitch applied advanced rates of 80%, 20%, and 10% to Sanmina's current balance of accounts receivable, inventory, and property, plant and equipment, respectively. That leads to a distressed enterprise value estimate of approximately $1.3 billion, providing the basis for a waterfall analysis to determine recovery ratings. The current 'RR1' recovery rating for Sanmina's secured credit facility and unsecured notes reflects Fitch's belief that 100% recovery is realistic. As is standard with Fitch's recovery analysis, the revolver is fully drawn and cash balances fully depleted to reflect a stress event. The current 'RR5' Recovery Rating for the senior subordinated debt reflects Fitch's estimate that a recovery of only 10%-30% would be achievable. As of March 31, 2007, Fitch believes liquidity was adequate and supported by US$664 million in cash and equivalents; US$500 million senior secured revolving credit facility due Dec. 2008, of which approximately US$400 million remains available; and various receivables sales facilities totaling approximately US$400 million, of which approximately US$80 million remains available. While Fitch estimates Sanmina's free cash flow for the LTM ended March 31, 2007 was negative US$406 million, largely due to increases in working capital driven by higher cash conversion cycle days. Fitch expects working capital trends to moderate, which should enable Sanmina to produce positive free cash flow in fiscal 2007. Pro forma for the debt offering and repayment of the US$600 million term loan, Fitch estimates total debt was US$1.7 billion, consisting of US$100 million drawn against a US$500 million senior secured revolving credit agreement; US$300 million of senior unsecured FRN due 2010; US$300 million of senior unsecured FRN due 2014; US$400 million of 6.75% senior subordinated notes due 2013; and US$600 million of 8.125% senior subordinated notes due 2016. The company has locations in Brazil, China, Finland, Malaysia, Mexico and Singapore, among others. SANMINA-SCI: S&P Rates US$600 Million Floating-Rate Notes at B+ --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to San Jose, California-based Sanmina-SCI Corp.'s US$600 million in floating-rate notes, $300 million of which mature in 2010 and US$300 million of which mature in 2014. Proceeds will be used to refinance the company's US$600 million term loan due January 2008. Sanmina's 'B+' corporate credit and 'B-' subordinated ratings are affirmed. The outlook is stable. "The ratings reflect continued erosion of profit measures, diminished liquidity, and high leverage," said Standard & Poor's credit analyst Lucy Patricola. These concerns are partly offset by the company's top-tier business position in low volume, complex electronic manufacturing services end markets and stable operating performance in that division. The company has locations in Brazil, China, Finland, Malaysia, Mexico and Singapore, among others. =========== F R A N C E =========== ALCATEL-LUCENT: Inks Two-Year Agreement with Comcel --------------------------------------------------- Mexican daily El Financiero reports that Alcatel-Lucent has signed a two-year accord with Haitian operator Comcel to offer wireless broadband in rural areas. Business News Americas relates that the pact will allow coffee cooperatives to trace the movement of their products using "RFID transmitted over WiMax broadband technology." These products are "sold under the fair trade label." Producers must make sure that the coffee is distributed through a minimum number of intermediaries. The agreement also includes the setting up of telecenters for services related to health, education, ecotourism and e-government, BNamericas states. Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on April 13, Fitch Ratings affirmed Alcatel-Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services puts a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carried Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carried Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stood at B. EUROTUNNEL GROUP: CEO Plans on Raising GBP680 Mln Fresh Capital --------------------------------------------------------------- Eurotunnel Group CEO Jacques Gounon aims to raise about GBP680 million of fresh capital in order to repay part of the convertible bond, which could see an increase in shareholders' stake in the restructuring company from an initial 13% to around 40%, Alistaire Osborne writes for The Telegraph. The restructuring will slash Eurotunnel's GBP6.2 billion debts to GBP2.84 million, with senior creditors repaid in full. Shareholders will be diluted to 13%, holding 2.55 billion shares in the new company, Groupe Eurotunnel, while junior creditors will share a GBP1.275 billion convertible bond. According to the report, the bond or notes redeemable for shares is in two parts. Some GBP488 million is non-redeemable by the company, giving creditors a guaranteed 33% of equity, or 6.52 billion shares. The second GBP787 million tranche is redeemable by the company over the next three years before it converts into another 10.52 billion shares, but only at a 40% premium, the Telegraph relates. Mr. Gounon plans to pay off a large portion of this in the next 13 months. "My goal is for shareholders to hold at least 40% [of the equity]," Mr. Gounon was quoted by the Telegraph as saying. "We have to raise money. I have made an assumption that with a EUR1 billion capital increase we can reach 40% for shareholders." Eurotunnel may raise fresh capital through a rights issue, the Telegraph said. "If Gounon is smart, which he is, the quicker he can have a rights issue with what is a technically overvalued share, the greater proportion of the company will end up being owned by shareholders, even if they have to pay for it," Mark McVicar, an analyst at Dresdner Kleinwort Wasserstein, told the Telegraph. The Telegraph added that Mr. Gounon believed that noteholders had no power to stop the company from buying back some of the redeemable notes. "That's clearly stated in the safeguard plan," Mr. Gounon said. Mr. Gounon also asked the remaining 90,000 U.K. shareholders who still did not tender their stock for new shares in Groupe Eurotunnel, to do so by June 14, 2007 deadline. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. EUROTUNNEL GROUP: Names Two New Non-Executive Directors ------------------------------------------------------- Eurotunnel Group's joint board appointed, Tim Yeo, MP as a non-executive director of Eurotunnel PLC and Pierre Bilger as non-executive director of Eurotunnel S.A. effective immediately, following the resignation of Jean-Louis Raymond as a director of the company. Tim Yeo is Member of Parliament for Suffolk South and chairman of the House of Commons Environmental Audit Select Committee. He was Minister of State for the Countryside and Environment and was a member of the Shadow Cabinet where he served, inter alia, as Shadow Secretary of State for Trade and Industry and Shadow Secretary of State for Environment and Transport. Tim Yeo is a director of ITI Energy Limited and is Chairman of Univent Plc and AFC Energy Plc. He was also founding Chairman of the Children�s Trust, a charity which took over Tadworth Court Children�s Hospital. An inspecteur des finances, Pierre Bilger devoted his 15-year career in the French public service (1967-1982) to dealing principally with budgetary issues. His career in industry, spanning 21 years, started in 1982 at Compagnie Generale d�Electricite (now Alcatel Lucent) of which he led the privatization as CFO and deputy Chief Executive. It continued at Alsthom from 1987, then Gec Alsthom of which he became Chief Executive Officer in March 1991 before becoming Chairman and Chief Executive of its successor Alstom, from its IPO in 1998 until 2003. Mr. Bilger currently chairs the Dutch-law foundation Stichting Preference Shares Renault-Nissan and is one of the advisors to the Management Consulting Group plc. "I am delighted that Tim Yeo, an MP and ex-minister of Her Majesty's government as well as Pierre Bilger who chaired the Franco-British group Gec Alsthom, now Alstom, have joined the Board," Eurotunnel CEO Jacques Gounon disclosed. "This demonstrates our clear intention to recreate within the Board a binational culture and it should convince British shareholders, who tendered less than 60% of their total Units, to take advantage of the reopening to tender their Units to the Offer before June 14, 2007,� Mr. Gounon added. The joint board has also resolved to convene the annual general meetings of Eurotunnel SA and Eurotunnel PLC in Coquelles (France) at 4:00 p.m. (French time) on July 27, 2007. It must be noted that, on that date, Eurotunnel SA and Eurotunnel PLC will have become subsidiaries of Groupe Eurotunnel SA (GET SA) which will therefore control them. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. SOLECTRON CORP: Flextronics Merger Pact Cues Fitch's Pos. Watch --------------------------------------------------------------- Following Solectron Corporation's (NYSE: SLR) announced agreement to be acquired by Flextronics International Ltd. (Nasdaq: FLEX) (Issuer Default Rating of 'BB+', on Rating Watch Negative by Fitch) for US$3.6 billion in a combination of cash and stock, Fitch has placed these ratings for SLR on Rating Watch Positive: -- Issuer Default Rating at 'BB-'; -- Senior unsecured debt at 'BB-'; -- Subordinated debt at 'B+'. Additionally, Fitch has affirmed Solectron's senior secured bank facility at 'BB+'. Fitch's actions affect approximately $600 million in debt securities. Resolution of the Rating Watch Positive will be determined by the ultimate outcome of Flextronics's IDR and the final capital structure of the combined company as well as any potential guarantee of Solectron debt by Flextronics. However, Fitch believes that Solectron's senior unsecured and subordinated bondholders have an option to force redemption of the existing bonds under a change of control provision. Consequently, Fitch believes it is likely that Solectron's debt would be retired at or soon after closing whereby Fitch would anticipate upgrading the various notes and IDR by one notch, respectively, and withdrawing the ratings at that time. Flextronics proposed acquisition of Solectron is still subject to customary closing conditions including regulatory and shareholder approval but is anticipated to close before the end of calendar 2007. Solectron shareholders have an option to receive either cash or stock in lieu of their shares, however total cash consideration is limited to a minimum of 30% and a maximum of 50% of total consideration. As of March 2, 2007, Solectron's liquidity was sufficient and supported by approximately US$1.1 billion of unrestricted cash and cash equivalents and an undrawn US$350 million senior secured revolving credit facility expiring August 2009. Total debt as of March 2, 2007, was approximately US$641 million and consisted primarily of: -- US$450 million 0.5% convertible senior notes due 2034; -- US$150 million 8% senior subordinated notes due 2016. Headquartered in Milpitas, California, Solectron Corporation (NYSE: SLR) -- http://www.solectron.com/-- provides a full range of worldwide manufacturing and integrated supply chain services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, product manufacturing, and product warranty and end-of-life support. The company operates in more than 20 countries on five continents including France, Malaysia, and Brazil, among others. It had sales from continuing operations of US$10.6 billion in fiscal 2006. SR TELECOM: Posts CDN$12.2 Mil. Net Loss in Qtr. Ended March 31 --------------------------------------------------------------- SR Telecom Inc. reported a net loss of CDN$12.2 million for the first quarter ended March 31, 2007, compared with a net loss of CDN$13.6 million for the same period ended March 31, 2006. SR Telecom�s consolidated first quarter revenue grew 19% to CDN$22.9 million from CDN$19.2 million in the same period in 2006. This increase reflects the ongoing implementation of major contracts in Mexico and Argentina as well as shipments for a new wireless deployment in Algeria. Q1 2007 revenues were, however, offset by outsourcing issues that delayed wireless product shipments and resulted in CDN$1.2 million in late-delivery penalties. Operating loss from continuing operations was CDN$8.8 million in the first quarter of 2007, a CDN$2.7 million improvement over the CDN$11.5 million operating loss recorded in the same period one year ago. The improvement in net loss and operating loss from continuing operations are a result of the increase in sales volume, higher margins on equipment sales due to a beneficial shift in product mix, and a CDN$2.4 million decline in restructuring charges, however offset by a CDN$1.5 million increase in selling, general and administrative (SG&A) expenses and a CDN$900,000 rise in research and development expenses. The rise in SG&A expenses for Q1 2007 is mainly attributable to higher costs related to the stock-based compensation plan implemented in Q2 2006 as well as expenses incurred to resolve the ongoing outsourcing issues. The R&D increase is a reflection of the additional resources the company has devoted to the development, delivery and deployment of WiMAX solutions. The company�s consolidated cash, including restricted cash, was US$11.0 million, down from US$27.1 million at Dec. 31, 2006, and reflecting the company�s use of cash to fund current capital requirements. "The improved financial performance we achieved in the first quarter is an encouraging indication that, despite the impact of ongoing restructuring efforts, our global customers remain confident in the quality of our wireless solutions and our ability to deliver and deploy them," said Serge Fortin, president and chief executive officer of SR Telecom. "Over the last several months, we have taken decisive action to position ourselves to grow in the global WiMAX market. It is clear, however, that our capital issues must be resolved before SR Telecom can regain sustainable positive momentum." At March 31, 2007, the company's balance sheet showed CDN$102.9 million in total assets, and CDN$102.6 million in total liabilities, resulting in a CDN$321,000 total stockholders' equity. Full-Text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?20ad Going Concern Doubt There is substantial doubt about the appropriateness of the use of the going concern assumption because of the uncertainty concerning the outcome of the company�s financing initiatives and because of the company�s losses for the current and prior years, negative cash flows, reduced availability of supplier credit and lack of operating credit facilities. For the quarter ended March 31, 2007, the company realized a net loss of CDN$12.2 million (CDN$115.6 million for the year ended Dec. 31, 2006) and used cash of CDN$12.4 million (CDN$45.2 million for the year ended Dec. 31, 2006) in its continuing operating activities. About SR Telecom Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. The company has offices in Mexico, France and Thailand. * * * SR Telecom's long-term credit rating carries Standard & Poor's Ratings Services' D rating. TCL MULTIMEDIA: Posts HK$2.5 Billion Net Loss for FY 2006 --------------------------------------------------------- TCL Multimedia Technology Holdings Ltd recorded a net loss of HK$2.5 billion on HK$29.18 billion of turnover for the full year ended Dec. 31, 2006, compared with a net loss of HK$703.28 million on HK$32.50 billion of turnover in 2005. According to the company, the decline in turnover and gross profit was mainly due to the winding down of the Group�s legacy Europe business implemented since October 2006. "Although the Group managed to achieve satisfactory performance in other key markets, the profits could not compensate for the substantial operating loss and the costs and impairment provisions for restructuring incurred by the Europe business, resulting in a net loss attributable to equity holders of the parent of HK$2,497 million for the year under review." As of Dec. 31, 2006, the company's unaidited balance sheet showed strained liquidity with current assets of HK$9.65 billion available to pay current liabilities of HK$10.66 billion. In addition, the company's balance sheet as of Dec. 31 showed total assets of HK$12.4 billion and total liabilities of HK$10.71 billion, resulting to a shareholders' equity of HK$1.69 billion. Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclhk.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products,refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that TCL Multimedia Technology Holdings Limited's European operations posted a CNY763 million loss, which caused losses of the TCL Corp. group to widen to CNY737.56 million. Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is expecting to post a loss for the full-year because first-half losses had been so large. In the first half of 2006, TCL reported a net loss of CNY737.56 million, after a loss of CNY320.24 million in 2005. The TCR-AP recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. TTE Europe SAS, TCL's European unit, filed a declaration of insolvency on May 24, 2007 in France after it failed to settle a number of outstanding liabilities. ============= G E R M A N Y ============= AESCULUS HEILPRAKTIKERSCHULE: Claims Registration Ends July 4 ------------------------------------------------------------- Creditors of Aesculus Heilpraktikerschule und Akademie GmbH have until July 4 to register their claims with court-appointed insolvency manager Volker Viniol. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 25, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Room 181 Ground Floor Hauffstr. 5 (Am Neckartor) 70190 Stuttgart 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. Volker Viniol Danneckerstr. 52 70178 Stuttgart Germany Tel: 0711/238890 The District Court of Stuttgart opened bankruptcy proceedings against Aesculus Heilpraktikerschule und Akademie GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Aesculus Heilpraktikerschule und Akademie GmbH Koenigstr. 60 70173 Stuttgart Germany AMERICAN AXLE: Fitch Expects to Rate Senior Term Loan at BB ----------------------------------------------------------- Fitch Ratings expects to assign a rating of 'BB' to the senior unsecured term loan announced by American Axle & Manufacturing Holdings, Inc., subject to review of final documentation. The company's current ratings are : * American Axle & Manufacturing Holdings, Inc. -- Issuer Default Rating 'BB'; * American Axle & Manufacturing, Inc. -- Issuer Default Rating 'BB'; -- Senior unsecured revolving credit facility 'BB'; -- Senior unsecured term loan 'BB'; -- Senior unsecured notes 'BB'. The Rating Outlook is Negative. Including the available portion of AXL's revolving credit facility, Fitch's ratings affect approximately US$1.5 billion of indebtedness. Fitch expects the proceeds from the new US$250 million term loan to be used to refinance the existing term loan due 2010. The new term loan should reduce cost of capital and extend the maturity into 2012. Annual cash interest savings should be around $4 million. The new term loan covenants are more flexible in that they will not include the limitations on restricted payments contained in the existing term loan agreement. Additionally, the leverage ratio debt incurrence test will increase to 3.75 from 3.50 and the allowable asset dispositions amount will increase from US$50 million from US$10 million. The amount of baskets for permitted liens and indebtedness are approximately the same in the aggregate with some slight modifications to the descriptions. The change-in-control covenant remains unchanged. Fitch's affirmation reflects the risks associated with AXL's dependence on General Motors Corp. (GM; Fitch IDR 'B'; Rating Watch Negative) for roughly 75% of its total revenue and in particular, GM's passenger trucks, which compete in segments that will remain under pressure in 2007. Partially offsetting these risks are AXL's margin performance, solid liquidity and competitive position; the financial benefits of recent headcount reduction; and an expected improvement in free cash flow in 2007. Free cash flow over the next several years will benefit from recent restructuring activities and reduced capital expenditure levels following an extended period of higher costs associated with the launch of GM's GMT900 trucks and international growth initiatives. In addition, the new business backlog with customers other than GM continues to grow. The Negative Rating Outlook reflects the credit condition of AXL's largest customer, critical labor negotiations later this year between GM and the United Auto Workers union, a financially stressed base of suppliers other than AXL, and the uncertain sustainability of large pickup truck production volume in light of a slump in new home construction. In addition, there is the uncertainty regarding demand for large sport utility vehicle (SUV) relative to consumers' reaction to higher fuel prices. Fitch could revise the Rating Outlook to Stable if GM's production outlook stabilizes or AXL's free cash flow materially improves in 2007, providing increased cushion against the uncertainty of the factors listed above. AXL has maintained its financial discipline through a period of heavy investment and in the midst of difficult industry conditions. While many suppliers have chosen to take advantage of attractive secured financing arrangements, AXL's funding has remained unsecured. AXL's credit metrics are healthy for the current rating, but AXL's credit profile is currently constrained by the company's dependence on GM, exposure to light trucks, and negative free cash flow over the past two years. For 2006 AXL's total debt to operating EBITDA was 2.6 times (x), total adjusted debt to operating EBITDAR (adjusted for rent) was 2.9x, and funds from operations (FFO) adjusted leverage was 3.4x. Headquartered in Detroit, MI, American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Poland, Scotland and South Korea. ATAK HANDELS: Claims Registration Period Ends July 6 ---------------------------------------------------- Creditors of ATAK Handels GmbH have until July 6 to register their claims with court-appointed insolvency manager Gerd Honsdorf. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on July 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Paderborn Meeting Hall 216 Second Floor Bogen 2-4 33098 Paderborn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gerd Honsdorf Detmolder Strasse 57-59 33100 Paderborn Germany Tel: 05251-25107 Fax: 05251-23699 The District Court of Paderborn opened bankruptcy proceedings against ATAK Handels GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ATAK Handels GmbH Nikolaus-Otto-Str. 34 33178 Borchen Germany Attn: Ahmet Engin Caliskan, Manager Fuellersheide 16 33100 Paderborn Germany AUTO-GALERIE SCHUBERT: Claims Registration Period Ends July 12 -------------------------------------------------------------- Creditors of Auto-Galerie Schubert GmbH have until July 12 to register their claims with court-appointed insolvency manager Hans-Peter Rechel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Peter Rechel c/o Zeuner & Rechel Insolvenz GbR Lehmweg 17 20251 Hamburg Germany Tel: 040/480 639-0 Fax: 040/480 639-99 E-mail: Hans-Peter.Rechel@wzr-legal.com The District Court of Lueneburg opened bankruptcy proceedings against Auto-Galerie Schubert GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto-Galerie Schubert GmbH August-Horch-Strasse 19 21337 Lueneburg Germany BENQ CORP: Option NV Buys Mobile Unit's Laboratories & Manpower --------------------------------------------------------------- Option NV has acquired the laboratory facilities of BenQ Mobile GmbH and Co., the insolvent German mobile unit of Taiwan-based BenQ Corp., for EUR4 million. The facilities include fully equipped laboratories, an advanced Electro-Magnetic Compatibility test chamber and office space. The acquisition also saw a team of BenQ Mobile engineers migrating to Option's 750 man-years of wireless experience. �With skilled engineers in short supply, this opportunity to acquire an established, highly skilled engineering team and fully-equipped facility was too good to miss,� said Jan Callewaert, Option�s CEO. �Our new team in Germany is ready to make an immediate impact on our drive into mobile internet devices and other new product lines for 2008.� About Option Option, the wireless technology company -- http://www.option.com/-- is a leading innovator in the design, development and manufacture of 3G WCDMA (HSPA and UMTS), EDGE, GPRS, GSM and WLAN technology products for wireless connectivity solutions. Option has built up an enviable reputation for creating exciting products that enhance the performance and functionality of wireless communications. Option�s headquarters are in Leuven, Belgium. The company has Research & Development in Leuven and D�sseldorf (Germany), a Software and Applications development centre in Adelsried (Germany), a Wireless Router development centre in Stockholm (Sweden) and an ISO 9002 production engineering and logistics facility in Cork (Ireland). Option also has sales & support operations in the US, Japan, Hong Kong and Taiwan. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 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. BENQ CORP: Former BenQ Mobile Managers to Hand Back Bonuses ----------------------------------------------------------- About 170 former managers and sales staff of BenQ Mobile GmbH and Co., the insolvent German mobile unit of Taiwan-based BenQ Corp., may need to repay up to EUR5.2 million in bonuses and special benefits obtained shortly before the company filed for insolvency in September 2006, Financial Times Deutschland reports citing insolvency administrator Martin Prager. Mr. Prager notes a law prohibiting any creditor privilege as basis for the premiums to be repaid, FT Deutschland relates. About Option Option, the wireless technology company -- http://www.option.com/-- is a leading innovator in the design, development and manufacture of 3G WCDMA (HSPA and UMTS), EDGE, GPRS, GSM and WLAN technology products for wireless connectivity solutions. Option has built up an enviable reputation for creating exciting products that enhance the performance and functionality of wireless communications. Option�s headquarters are in Leuven, Belgium. The company has Research & Development in Leuven and D�sseldorf (Germany), a Software and Applications development centre in Adelsried (Germany), a Wireless Router development centre in Stockholm (Sweden) and an ISO 9002 production engineering and logistics facility in Cork (Ireland). Option also has sales & support operations in the US, Japan, Hong Kong and Taiwan. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 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. BENQ CORP: Enters Into NFC Contract with Sirit ---------------------------------------------- BenQ Corporation has secured a Near Field Communications contract with Sirit Inc. The contract calls for Sirit to serve as BenQ's supplier of embedded NFC software and technology engineering services for BenQ's forthcoming NFC mobile smartphones and handsets. This design win further validates the value proposition and expertise of Sirit's NFC team in helping OEMs shorten their development cycles and time to market for NFC-enabled devices. "Given the significant and immediate opportunity for NFC handsets in the Asia Pacific region and globally, time to market is critical to our success," said Dr. SS Chen, the Associated Vice President of Mobile Communication Business Group of BenQ Corporation. "We chose Sirit's NFC team to help us in our development of NFC handsets based on their early involvement in the NFC market. Leveraging their demonstrated expertise with embedded NFC software and successes working with OEMs, we are confident in the Sirit's NFC team's ability to help accelerate our time to market." "BenQ is a multi-billion dollar Taiwan-based technology innovation leader, supplying mass-market consumer devices including smartphones, displays, and digital home peripherals," commented Chris Leong, Vice President, NFC and Contactless at Sirit Inc. "We are honoured that BenQ has chosen Sirit's NFC team as its supplier of embedded NFC software and services. We look forward to helping BenQ capitalize on the NFC opportunity in the Asia Pacific region and beyond." About Sirit Inc. Sirit Inc. (TSX: SI) is a provider of Radio Frequency Identification solutions worldwide. Harnessing the power of Sirit's enabling-RFID technology, customers are able to more rapidly bring high quality RFID solutions to the market with reduced initial engineering costs. Sirit's products are built on more than 13 years of RF domain expertise addressing multiple frequencies (LF/HF/UHF), multiple protocols and are compliant with global standards. Sirit's broad portfolio of products and capabilities are easily customized to address new and traditional contactless market applications including Near Field Communication, Supply Chain & Logistics, Cashless Payment (including Electronic Tolling), Access Control, Automatic Vehicle Identification, Inventory Control & Management, Asset Tracking and Product Authentication. About BenQ Corp. 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 handsets, 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 the company failed to secure a buyer 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. BIOMARKEN HANDELS: Claims Registration Period Ends June 30 ---------------------------------------------------------- Creditors of BioMarken Handels und Service GmbH have until June 30 to register their claims with court-appointed insolvency manager Jochen Wagner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 6, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ingolstadt Meeting Hall 28 I Schrannenstr. 3 85049 Ingolstadt 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: Jochen Wagner Goldknopfgasse 2 85049 Ingolstadt Germany Tel: 0841/14 28 99-0 Fax: 0841/14 28 99-10 The District Court of Ingolstadt opened bankruptcy proceedings against BioMarken Handels und Service GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BioMarken Handels und Service GmbH Attn: Uwe Davids, Manager Plan 30 15831 Grossbeeren Germany CHIQUITA BRANDS: Colsiba Accuses Possible Covenant Breach --------------------------------------------------------- Colsiba, the coordination board for unions of Latin American banana plantation employees, has accused Chiquita Brands of planning to break a covenant with the group, Fresh Plaza reports. Fresh Plaza relates that Colsiba alleged that the most basic standards that have been set were breached and the accords made in discussions with Colsiba are not being respected. Colsiba told Fresh Plaza that the situation in Nicaragua causes the most concern. Collective labor accords have not been renegotiated over the past 10 years. The salaries on the plantations are at 1,5 dollar a day and labor conditions are harsh. Workers often don't get tools or protective gear. Fresh Plaza notes that in Guatemala, talks on a new collective labor accord have been going on for nine months, while discussions on the matter has taken 10 months in Honduras. Chiquita Brands doesn't want to increase salaries and improve social conditions while output goals have been set at record levels, Colsiba told Fresh Plaza. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service changed the rating outlook for Chiquita Brands International, Inc. to negative from stable. Ratings affirmed: * Chiquita Brands International, Inc. (parent holding company) -- Corporate family rating at B3 -- Probability of default rating at B3 -- US$250 million 7.5% senior unsecured notes due 2014 at Caa2 (LGD5, 89%) -- US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%) * Chiquita Brands LLC (operating subsidiary): -- US$200 million senior secured revolving credit agreement at B1 (LGD2, 26%) -- US$24.3 million senior secured term loan B at B1 (LGD2, 26%) -- US$368.4 million senior secured term loan C at B1 (LGD2, 26%). CINE RELATION: Claims Registration Ends July 15 ----------------------------------------------- Creditors of Cine Relation Alfred Noell GmbH have until July 15 to register their claims with court-appointed insolvency manager Dr. Bruno Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 11:00 on Aug. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bruno Kuebler Aachener Str. 222 50931 Cologne Germany Tel: 400 770 Fax: +492214007720 Web site: http://www.kuebler-gbr.de/ The District Court of Cologne opened bankruptcy proceedings against Cine Relation Alfred Noell GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cine Relation Alfred Noell GmbH Feldstr. 96 51469 Bergisch Gladbach Germany DAIMLERCHRYSLER: Recalls 1,443 Faulty Chinese-Made Chrysler Cars ---------------------------------------------------------------- DaimlerChrysler AG is recalling 1,443 Chinese-made Chrysler 300C sedans produced between March 21 and May 29 to fix defective transmission cooling systems, Reuters reports, quoting a statement posted by China's General Administration of Quality Supervision, Inspection and Quarantine on its Web site. According to the statement, imported Chrysler 300C cars were not affected. It did not say, however, whether any accidents or personal injuries had been linked to the defect, Reuters notes. DaimlerChrysler's Chinese joint venture in Beijing began limited production of the 300C in 2005. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DOMUS-FLIESENLEGER: Claims Registration Ends July 13 ---------------------------------------------------- Creditors of DOMUS-Fliesenleger Verwaltungsgesellschaft mbH have until July 13 to register their claims with court-appointed insolvency manager Andreas Franz. Creditors and other interested parties are encouraged to attend the meeting at 10:45 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 Schwerin Hall 7 Demmlerplatz 14 19053 Schwerin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Franz Steinstrasse 26 19053 Schwerin Germany The District Court of Schwerin opened bankruptcy proceedings against DOMUS-Fliesenleger Verwaltungsgesellschaft mbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DOMUS-Fliesenleger Verwaltungsgesellschaft mbH Attn: Dr. Rainer Lange Rothentor 1-3 23966 Wismar Germany GEORG DAUTERMANN: Claims Registration Ends July 30 -------------------------------------------------- Creditors of Georg Dautermann GmbH & Co. KG-Bauunternehmung have until July 30 to register their claims with court-appointed insolvency manager Claus-Peter Langer. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.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 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: Claus-Peter Langer Herzog-Wilhelm-Str. 17 80331 Munich Germany Tel: 236858-0 Fax: 2603440 The District Court of Munich opened bankruptcy proceedings against Georg Dautermann GmbH & Co. KG-Bauunternehmung on May 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Georg Dautermann GmbH & Co. KG-Bauunternehmung Behringstr. 11a 82152 Planegg Germany GOERG GMBH: Claims Registration Period Ends July 10 --------------------------------------------------- Creditors of Goerg GmbH have until July 10 to register their claims with court-appointed insolvency manager Andrea Kornisch. Creditors and other interested parties are encouraged to attend the meeting at 8:55 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 Saarbruecken Meeting Hall 24 Second 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 Kornisch Mathias-Iven-Strasse 10 66117 Saarbruecken Germany Tel: 0681/ 954 120 Fax: 0681/ 954 1222 The District Court of Saarbruecken opened bankruptcy proceedings against Goerg GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Goerg GmbH Attn: Maria Goerg, Manager Ellbachstr. 27 66740 Saarlouis Germany GUELKAR KEBAP: Claims Registration Ends June 25 ----------------------------------------------- Creditors of Guelkar Kebap Line GmbH have until June 25 to register their claims with court-appointed insolvency manager Thomas Joswig. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Aug. 6, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mannheim Hall 232 First Floor Westfluegel Schloss 68159 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: Thomas Joswig Besselstrasse 2-4 68219 Mannheim Germany Tel: 0621/845578-0 Web site: http://www.kuebler-gbr.de/ The District Court of Mannheim opened bankruptcy proceedings against Guelkar Kebap Line GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Guelkar Kebap Line GmbH Brauereistr. 9 68723 Plankstadt Germany Attn: Seyfettin Guel, Manager Friedrich-Ebert-Str. 15 68723 Schwetzingen Germany H & F SCHLACHT: Claims Registration Period Ends July 24 ------------------------------------------------------- Creditors of H & F Schlacht- und Service GmbH have until July 24 to register their claims with court-appointed insolvency manager Hartmut Mitze. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 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 Marburg/Lahn Hall 159 Universitatsstrasse 48 35037 Marburg/Lahn 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: Hartmut Mitze Jahnstrasse 18 35066 Frankenberg Germany Tel: 06451/7191922 Fax: 06451/7191921 The District Court of Marburg/Lahn opened bankruptcy proceedings against H & F Schlacht- und Service GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H & F Schlacht- und Service GmbH Pfauenweg 1 35114 Haina Germany HARLEY-KORSO MOTORRAD: Claims Registration Period Ends July 27 -------------------------------------------------------------- The court-appointed insolvency manager for Harley-Korso Motorrad-Handelsgesellschaft mbH i.L., Juergen Spliedt will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:40 a.m. on July 27. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 10:30 a.m. on Oct. 19 at the same venue. Creditors have until Aug. 20 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Juergen Spliedt Uhlandstr. 165/166 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Harley-Korso Motorrad-Handelsgesellschaft mbH i.L. on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Harley-Korso Motorrad-Handelsgesellschaft mbH i.L. Heinrich-Herz-Str. 1 d 14532 Kleinmachnow Germany HAYES LEMMERZ: Unit Completes Tender Offer for 10-1/2% Sr. Notes ---------------------------------------------------------------- Hayes Lemmerz International Inc. disclosed the expiration of the cash tender offer and consent solicitation of its indirect subsidiary, HLI Operating Company Inc. for any and all of the outstanding 10-1/2% Senior Notes Due 2010 (CUSIP No. 404216AB9) of HLI. The tender offer and consent solicitation for the Notes expired at 11:59 p.m., New York City time, on June 5, 2007. As of the Expiration Date, HLI had received tenders with respect to US$154,238,000 in aggregate principal amount of the Notes pursuant to HLI's Offer to Purchase and Consent Solicitation Statement, dated May 8, 2007, and the related Letter of Transmittal and Consent for Tender Offer. HLI accepted for payment and paid for US$154,178,000 in aggregate principal amount of such Notes on May 30, 2007. HLI expects to accept for payment and pay for the remaining Notes validly tendered prior to the Expiration Date on or about June 7, 2007. HLI intends to redeem the remaining US$3,262,000 in aggregate principal amount of outstanding Notes that were not tendered by the Expiration Date prior to their maturity. The tender offer and consent solicitation were made solely by means of the Offer to Purchase and the related Letter of Transmittal and Consent for Tender Offer. About Hayes Lemmerz International Headquartered in Northville, Michigan, Hayes Lemmerz International Inc. (Nasdaq: HAYZ) -- http://www.hayes-lemmerz.com/-- global supplier of automotive and commercial highway wheels, brakes and powertrain components. The company has 30 facilities and approximately 8,500 employees worldwide. The company has operations in India, Brazil and Germany, among others. * * * As reported in the Troubled Company Reporter on May 4, 2007, Moody's Investors Service raised to B3 from Caa1 the corporate family and probability of default ratings of HLI Operating Company, Inc., a wholly-owned subsidiary of Hayes Lemmerz International, and changed the rating outlook to stable from negative. HEINRICH & MUELLER: Creditors' Meeting Slated for June 13 --------------------------------------------------------- The court-appointed insolvency manager for Heinrich & Mueller GmbH, Bettina Schmudde will present her first report on the Company's insolvency proceedings at a creditors' meeting at 11:00 a.m. on June 13. The meeting of creditors and other interested parties will be held at: The District Court of Dresden Hall D132 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on Aug. 2 at the same venue. Creditors have until June 25 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Bettina Schmudde Koenigstrasse 1 01097 Dresden Germany Web site: http://www.whitecaseinso.de/ The District Court of Dresden opened bankruptcy proceedings against Heinrich & Mueller GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heinrich & Mueller GmbH Attn: Gerd Heinrich and Sven Mueller-Roeske, Managers Neubuehlauer Strasse 10 01324 Dresden Germany HENKE ENERGIESPARHAUS: Creditors' Meeting Slated for July 6 ----------------------------------------------------------- The court-appointed insolvency manager for Henke Energiesparhaus GmbH, Christian Willmer will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:10 a.m. on July 6. The meeting of creditors and other interested parties will be held at: The District Court of Verden (Aller) Hall 214 Main Building Johanniswall 8 27283 Verden (Aller) Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on Aug. 31, at the same venue. Creditors have until July 24 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Christian Willmer Georgstr. 5 27283 Verden (Aller) Germany Tel: 04231/884-45 Fax: 04231/884-55 The District Court of Verden (Aller) opened bankruptcy proceedings against Henke Energiesparhaus GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Henke Energiesparhaus GmbH Grasdorfer Str. 12 28870 Ottersberg Germany Attn: Rolf Henke, Manager Paschkebergstr. 12 27299 Langwedel Germany HOLZ GROSSHANDEL: Creditors Must Register Claims by Sept. 4 ----------------------------------------------------------- Creditors of Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH have until Sept. 4 to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 18, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt 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 Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holz Grosshandel- und Verarbeitung Faulstich & Co. GmbH Attn: Peter Faul-stich, Manager Levinestrasse 9 99334 Ichtershausen Germany HOTEL MONDO: Creditors Must Register Claims by July 25 ------------------------------------------------------ Creditors of Hotel Mondo GmbH have until July 25 to register their claims with court-appointed insolvency manager Johannes Klefisch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Johannes Klefisch Rotter Bruch 6 52068 Aachen Germany The District Court of Cologne opened bankruptcy proceedings against Hotel Mondo GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotel Mondo GmbH Attn: Rosemie Kempener-Possegga, Manager Ostring 49 50129 Bergheim Germany HOTEL STADT: Creditors Must Register Claims by July 17 ------------------------------------------------------ Creditors of Hotel Stadt Hamburg Betriebs GmbH have until July 17 to register their claims with court-appointed insolvency manager Hans-Peter Rechel. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Aug. 16, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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-Peter Rechel Lehmweg 17 20251 Hamburg Germany The District Court of Neuruppin opened bankruptcy proceedings against Hotel Stadt Hamburg Betriebs GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotel Stadt Hamburg Betriebs GmbH Roebeler Str. 25 16909 Wittstock Germany LEMMA TECHNOLOGIES: Creditors Must Register Claims by June 30 ------------------------------------------------------------- Creditors of Lemma Technologies GmbH have until June 30 to register their claims with court-appointed insolvency manager Michael Bremen. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 11, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 409 Fourth Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Bremen Sternstr. 58 40479 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against Lemma Technologies GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lemma Technologies GmbH Steinstr. 28 40210 Duesseldorf Germany LWG LANDSCHAFTSPFLEGE: Claims Registration Ends June 26 ------------------------------------------------------- Creditors of LWG Landschaftspflege und Wasserbau GmbH have until June 26 to register their claims with court-appointed insolvency manager Dr. Martin Dietrich. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Aug. 7, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D132 Olbrichtplatz 1 01099 Dresden 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. Martin Dietrich Brauhaus 5 01099 Dresden Germany Web site: http://www.henningsmeier.de/ The District Court of Dresden opened bankruptcy proceedings against LWG Landschaftspflege und Wasserbau GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LWG Landschaftspflege und Wasserbau GmbH Sebastian-Kneipp-Str. 10 01819 Berggiesshuebel Germany Attn: Katja Pietzsch, Manager Gersdorf 33 01819 Bahretal Germany MANFRED FINKEN: Creditors Must Register Claims by July 2 -------------------------------------------------------- Creditors of Manfred Finken GmbH have until July 2 to register their claims with court-appointed insolvency manager Johannes Klefisch. Creditors and other interested parties are encouraged to attend the meeting at 06.08.2007, 9:05 a.m. on Aug. 6, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen 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: Johannes Klefisch Rotter Bruch 6 52068 Aachen Germany The District Court of Aachen opened bankruptcy proceedings against Manfred Finken GmbH on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Manfred Finken GmbH Prager Ring 106 52070 Aachen Germany NOVELIS CORP: Moody's Rates US$860 Million Senior 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 Limited, 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, we note 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 Headquartered in Atlanta, Georgia, Novelis is the world's largest producer of aluminum rolled products. In 2006, the company had total shipments of approximately 3.1 million tons and generated approximately US$9.8 billion in revenues. 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. Novelis South America operates two rolling plants and primary production facilities in Brazil in the Latin-American region. Novelis also has operations in Germany, Switzerland and Korea. PRUDENTIAL EQUITY: Equity Research Operations Discontinued ---------------------------------------------------------- Prudential Financial Inc. said it will discontinue the institutional equity research, sales and trading business known as Prudential Equity Group. The decision affects the equity research operations throughout the United States, including its offices and trading operations in New York City and Washington, D.C., San Francisco, Kansas City, Chicago, Philadelphia, Cleveland, Atlanta and Boston, and outside the United States in London, Zurich, Paris and Tokyo. Effective immediately, Prudential Equity Group is dropping coverage of the sectors and companies it covers. For the year ended Dec. 31, 2006, the operations had revenues of approximately US$260 million and income from continuing operations before income taxes of approximately US$34 million. At Dec. 31, 2006, the operations had total assets of approximately US$137 million. The company anticipates that the operations will be substantially wound down during the quarter ending June 30, 2007. General notification of the decision to affected employees occurred on June 6, 2007. The company currently estimates that it will ultimately incur aggregate costs of approximately US$110 million ($72 million after-tax) in connection with the decision, including approximately US$75 million in employee severance, retention and other employee related costs, US$18 million in lease related costs and US$17 million of other costs. The company currently estimates that the majority of the costs will be reflected in the company�s consolidated financial statements for the quarter ending June 30, 2007. As a result of the decision, the PEG operations, which have been historically included in the company�s Financial Advisory segment, will be excluded from the Financial Advisory segment and included, together with the costs of exiting the operations, in either Corporate and Other operations as a divested business or in Discontinued Operations depending on when the PEG operations cease to do business, with prior period results being adjusted to reflect the reclassification. Divested businesses reflected in corporate and other operations consist of businesses that have been or will be sold or exited that do not qualify for �discontinued operations� accounting treatment under generally accepted accounting principles. The results of Discontinued Operations are included in net income determined in accordance with GAAP but are excluded from income from continuing operations determined in accordance with GAAP. Results of both divested businesses and Discontinued Operations are excluded from adjusted operating income, which differs from net income and income from continuing operations determined in accordance with GAAP but is the financial measure that the company uses to analyze the operations of each segment in managing its Financial Services Businesses. Prudential Financial Inc. (NYSE: PRU) -- http://www.prudential.com/-- is a financial services leader with approximately US$630 billion of assets under management as of March 31, 2007. The company has operations in the United States, China, Singapore, Germany, and Brazil. Prudential�s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. SPECTRUM BRANDS: A. Genito Promoted to Chief Financial Officer -------------------------------------------------------------- Spectrum Brands, Inc. promoted Anthony L. Genito, 50, to the position of senior vice president and chief financial officer. As CFO, Mr. Genito reports to Kent Hussey, Spectrum Brands' chief executive officer, and is responsible for the company's financial functions including accounting, treasury, tax and financial planning. Mr. Genito succeeds Randall J. Steward, 52, formerly executive vice president and chief financial officer, who has resigned to pursue other professional and personal interests. "Randy Steward has been a key leader in Spectrum Brands' growth and transformation during the past nine years," Mr. Hussey said. "We thank him for his many valuable contributions to the company and wish him well. I am confident that the people, processes and organization he has put in place will result in a smooth transition for Tony into his new role." "Tony has a strong financial background, and in his three years with Spectrum Brands he has developed a deep understanding of our business and earned a solid reputation throughout the company," Mr. Hussey continued. "He is ideally suited to take on the critical role of chief financial officer at this point in the evolution of the company and I look forward to working in partnership with him to move forward on our strategy to build value for shareholders." Mr. Genito, who has over 27 years of management, finance and operational experience, most recently served as the company's senior vice president finance and chief accounting officer. Prior to joining Spectrum, Mr. Genito was vice president of global supply chain/global quality operations with Schering-Plough Corporation, culminating twelve years with that company in various financial positions of increasing responsibility. He began his career with Deloitte & Touche. Mr. Genito holds a B.S. in Accounting from Mercy College and an M.B.A. from Pace University and is a certified public accountant. About Spectrum Brands Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company's European headquarters is located at Sulzbach, Germany. * * * As reported in the Troubled Company Reporter on April 30, 2007, Fitch Ratings affirmed the ratings of Spectrum Brands, Inc., including its CCC issuer default rating, its CCC- rating of the company�s US$700 million 7-3/8% senior subordinated note due 2015 and its CCC- rating of the company�s US$350 million 11.25% Variable Rate Toggle Interest pay-in-kind Senior Subordinated Note due 2013. The Outlook remains Negative. WALLOCH BUEROTECHNIK: Claims Registration Period Ends July 24 ------------------------------------------------------------- Creditors of Walloch Buerotechnik GmbH have until July 24 to register their claims with court-appointed insolvency manager Herbert Feigl. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Aug. 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Herbert Feigl Hansering 1 D 06108 Halle Tel: 0345/212220 Fax: 0345/2122222 The District Court of Halle-Saalkreis opened bankruptcy proceedings against Walloch Buerotechnik GmbH on May 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Walloch Buerotechnik GmbH Attn: Detlef Walloch, Manager Maybachstr. 1 06112 Halle Germany WOHNLAND GMBH: Claims Registration Period Ends July 13 ------------------------------------------------------ Creditors of WohnLand GmbH have until July 13 to register their claims with court-appointed insolvency manager Dr. Rolf-Dieter Moenning. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on Aug. 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cottbus Hall 210 platz 2 Cottbus 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. Rolf-Dieter Moenning Lieberoser Strasse 07 03046 Cottbus Germany The District Court of Cottbus opened bankruptcy proceedings against WohnLand GmbH on May 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WohnLand GmbH Attn: Herrn Karl Walther, Manager Schraube 32 03238 Finsterwalde Germany ZINN GMBH: Claims Registration Period Ends July 12 -------------------------------------------------- Creditors of Zinn GmbH have until July 12 to register their claims with court-appointed insolvency manager Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C315 Third Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sebastian Henneke Muelheimer Str. 100 47057 Duisburg Germany The District Court of Duisburg opened bankruptcy proceedings against Zinn GmbH on May 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Zinn GmbH Kulturstrasse 9-15 47055 Duisburg Germany ============= H U N G A R Y ============= FERENCVAROSI TORNA: May Enter Into Liquidation Procedure -------------------------------------------------------- Ferencvarosi Torna Club (aka FTC or Fradi) may go into liquidation after the company failed to pay off its debts to Sportsmarketing Kft. within the May 20, 2007 deadline, All Hungary News reports. According to the report, the courts can wind Fradi up at any time following the default. FTC Labdarugo Zrt. President Csaba Hermany, however, said the football club would appeal to the court should a winding up order be issued, All Hungary News relates. Mr. Hermany is hopeful that the financial situation of Fradi can improve if new investors come in. Last summer, the club was relegated to the Hungarian division after it fell short of the financial criteria. Zolta Damosy, former president of FTC Labdarugo Zrt., revealed the club is in talks with potential investors and negotiations are currently underway, All Hungary News says citing sports newspaper Nemzeti Sport. Founded in 1899, Ferencvarosi Torna Club � http://www.ftc.hu/-- is one of the most popular Hungarian sports clubs, Their stadium is situated in Ferencvaros, the ninth District of Budapest. GUESS?: Morgan Keegan Reaffirms Outperform Rating on Firm' ---------------------------------------------------------- Morgan Keegan analysts have reaffirmed their "outperform" rating on Guess? Inc's shares, Newratings.com reports. The analysts said in a research note that Guess?'s first quarter 2007 earnings per share were ahead of estimates and consensus due to better-than-anticipated revenue growth and gross margin expansion. According to Newratings.com, the earnings per share estimate for Guess?'s shares in 2007 was increased to US$1.88 from US$1.80, while estimate for the firm's shares in 2008 was raised to US$2.35 from US$2.15. Newratings.com relates that Brean Murray analyst Eric M. Beder has reaffirmed his "buy" rating on Guess?'s shares. The report says that the target price for Guess?'s shares was increased to US$57. Mr. Beder said in a research note that Guess?'s first quarter 2007 earnings per share was ahead of the estimates and the consensus. The firm also reported record results at several levels. Mr. Beder told Newratings.com that despite weak consumer trends, Guess?�s concentration on global operations continues to show significant expansion opportunities and drive superior returns. His earnings per share estimate for Guess?'s shares for 2007 was raised to US$1.81 from US$1.70, while the estimate for 2008 was increased to US$2.18 from US$2.04, to indicate the first quarter 2007 "upside and marginally higher growth rates for the wholesale and European sectors," Newratings.com states. Guess?, Inc., -- http://www.guess.com-- designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. The company owns and operates retail stores in the United States, Canada and Mexico. The company also distributes its products through better department and specialty stores around the world, including the Philippines, Hungary and the Dominican Republic. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 8, 2006, Standard & Poor's Ratings Services raised its ratings on Los Angeles-based specialty apparel retailer Guess? Inc. to 'BB' from 'BB-'. S&P said the outlook is positive. GUESS? INC: Earns US$35.5 Million in First Quarter Ended May 5 -------------------------------------------------------------- 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. W e 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. 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. ========= I T A L Y ========= ACTUANT CORP: Prices US$250MM Senior Notes Private Placement ---------------------------------------------------------- Actuant Corporation has priced its private placement of US$250 million aggregate principal amount of 6.875% Senior Notes due 2017. The Senior Notes will be issued at a price of 99.607%, to yield 6.93%. The sale of the senior notes is expected to close on or about June 12, 2007. The company will use the net proceeds from the offering to refinance a portion of its term loans under its senior credit facility and to pay certain transaction costs and expenses. The senior notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the notes are being offered and sold only to: (a) "qualified institutional buyers", as defined in Rule 144A under the Securities Act, and (b) outside the United States, to non-U.S. persons in compliance with Regulation S under the Securities Act. About Actuant Corp. Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. * * * As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. ALGOMA ACQUISITION: Moody's Junks US$450 Million Notes ------------------------------------------------------ Moody's Investors Service assigned a B3 corporate family rating to Algoma Acquisition Corp., a newly-created holding company that has been set up to facilitate the acquisition of Algoma Steel Inc. Moody's also assigned a B3 rating to the company's US$450 million secured term loan due 2013 and a Caa1 rating to its $450 million senior unsecured notes due 2015. The rating outlook is stable. This is the first time Moody's has rated the debt of Algoma since it emerged from bankruptcy in 2002. The new financing is being done in connection with the purchase of the company by Essar Steel Holdings Limited for CDN$1.8 billion, including approximately CDN$1.2 billion of debt, CDN$0.5 billion of equity, and cash. These ratings were assigned: -- Corporate family rating � B3; -- Probability of default rating -- B3; -- US$450 million secured term loan due 2013 -- B3 (LGD3, 47%); -- US$450 million senior unsecured notes due 2015 -- Caa1 (LGD5, 76%); -- Speculative grade liquidity rating -- SGL-3. Algoma's ratings reflect its very high leverage, single-site location, modest scale, and lack of control over raw material prices. It is dependent predominantly on commodity grades of sheet steel, where it competes with much larger and better-capitalized companies having relatively lower retiree liabilities. Moody's believes that the company has a high degree of operating leverage. This has contributed to strong results in the current upmarket but makes it vulnerable to soft demand and price declines. Over the last several years, hot rolled sheet products have exhibited more volatility than most steel products, experiencing quarterly price drops of US$50-90 per ton (9-14% declines) during the mid-2005 and year-end 2006 periods. As the prices that Algoma pays for its iron ore and coal are determined by long-term contracts, its margins in the short term are highly correlated with steel selling prices. Over the next several years, Moody's expects new owner ESH to promote Algoma's investment in a number of capital projects designed to increase its capacity, productivity and proportion of non-commodity products. The projects could consume all of Algoma's operating cash flow. Some of these projects can be delayed if market conditions do not justify the expenditures, but several are needed to better match steelmaking and rolling capacity and, in Moody's opinion, ensure that Algoma's value-added product capabilities do not fall behind those of its competitors. In 2007, Algoma expects to spend CDN$146 million in capex, nearly three times its 2004-2006 average levels, We believe this capex will continue at the higher level for several years, which, when combined with Algoma's high interest expense, could significantly delay debt reduction throughout the current upcycle for the steel industry. The ratings positively reflect Algoma's relatively low cost hot rolled steel making capabilities, using its Direct Strip Production Complex, and favorable steel industry fundamentals. Algoma's pro forma debt will be CDN$1.22 billion and CDN$1.4 billion using Moody's standard adjustments for underfunded pensions (CDN$164 million) and leases (CDN$14 million). On the basis of adjusted debt per tons shipped, Algoma's CDN$578 per ton is the highest of any steel company Moody's rates. Adjusted debt to LTM March 31, 2007 revenues is also high at 73%. The SGL-3 speculative grade liquidity rating considers Algoma's modest, and possibly negative, free cash flow over the next 12 months and its high reliance on its US$425 million asset-based revolving credit facility, which will be 50% utilized upon closing of the acquisition. Algoma Steel Inc., headquartered in Sault Ste. Marie, Ontario, is the third largest integrated steel producer in Canada, accounting for approximately 15% of Canadian raw steel production. About 80% of Algoma's sales are sheet products, with plate products accounting for the balance. Of 2006 revenues of CDN$1.9 billion, 65% and 35% were from sales in Canada and the U.S., respectively. Algoma's principal end markets are steel service centers, the automotive industry, steel fabricators and manufacturers. The company has facilities in Italy. Essar Steel Holdings Limited is the second-largest private sector steel producer in India. ESH is a wholly-owned, Mauritius-based subsidiary of Indian conglomerate, Essar Global Limited. Essar recently announced the acquisition of Minnesota Steel LLC, a greenfield mine-to-steel project located near Nashwauk, Minnesota. ALITALIA SPA: Air One and Aeroflot Explore Possible Tie-Up ---------------------------------------------------------- OAO Aeroflot is holding talks with Air One chief executive and owner Carlo Toto over a possible alliance to acquire the Italian government's 39.9% stake in Alitalia S.p.A., The Financial Times reports. Sources privy to the matter told the FT that Mr. Toto decided to take a personal lead in holding talks with possible partner and has excluded the carrier's advisors from negotiations. The sources added that though no formal deal has been signed, the two current rivals for Alitalia may fuse their bids. As reported in the TCR-Europe on June 4, 2007, the Italian government wants OAO Aeroflot-Unicredit Italiano S.p.A. and AirOne S.p.A.-Intesa-San Paolo S.p.A. consortia to unify their bids to acquire the state's stake in Alitalia. July 2 Deadline The sources further told FT that neither Air One or Aeroflot give much credence to the government's declaration that it will proceed with its planned auction process culminating on July 2. The sources, however, expects Alitalia to be sold via amicable negotiation between the bidders to avoid a possible collapse of the national carrier. Results Approval The sources told FT that it remains unclear what will happen to Alitalia if auditors Deloitte & Touche refuses to certify its 2006 results or if the current auction process is declared void. TCR-Europe reported om June 5, that Deloitte & Touche may not approve Alitalia's accounts for 2006 pending assurance of the carrier's future. Italian infrastructure minister Antonio Di Pietro earlier said Alitalia may succumb to bankruptcy if bidders do not submit adequate offers to relaunch the ailing carrier. The TCR-Europe reported on May 28, 2007, that Alitalia reported EUR625.6 million in net loss on EUR4.72 billion in operating revenues for the year ended Dec. 31, 2006, compared with EUR176.6 million in net loss on EUR4.8 billion in operating revenues for the year ended Dec. 31, 2005. Parmalat-Type Rescue? The sources further stated that it is unclear whether Italian Industry Minister Pierluigi Bersani will invoke the Marzano Bankruptcy Law to rescue Alitalia from possible collapse. The Marzano Law was passed in 2003 following Parmalat's multi-billion euro collapse in December of the same year. The law allows companies to recover payment made in the year before its insolvency. Bruno Tabacci, a representative of Italy�s UDC party, believe that the government will not be able to use the Marzano law as it may be seen as further state aid by the European Union, FT relates. FT cites a Treasury source as saying that unlike Parmalat, Alitalia�s financial problems are more structural in nature and do not involve fraud or false corporate accounting. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. DANA CORP: Court OKs Sale of Fluid Products Businesses to Orhan --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved the sale of Dana Corporation's two businesses that compose the Fluid Products business that the company announced for sale in late 2005. Dana's fluid products hose and tubing business will be sold to Orhan Holding, A.S., a Turkish industrial firm and joint-venture partner of Dana, for a purchase price of US$85 million, and the company's coupled products business will be sold to Coupled Products Acquisition LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation, for a nominal price. Competitive bidding procedures for the sale of these businesses concluded on June 4. The company expects to close the sale of both businesses by the end of July 2007. Fluid Products Transaction Overview Orhan and certain of its affiliates will acquire certain assets of Dana's fluid products hose and tubing business and the stock of certain Dana affiliates engaged in the business. The assets to be sold are located in three plants in the United States and one each in Mexico and the United Kingdom. Dana will also sell its stock in three companies in France, Slovakia, and Spain and interests in three joint ventures with Orhan Holdings, which include one operation in France and two in Turkey. The operations being sold reported consolidated revenues of US$266 million in 2006. The aggregate purchase price will be US$85 million, subject to usual closing adjustments, and the buyers will assume certain liabilities of the business at closing. The fluid products hose and tubing plants and/or assets proposed to be sold to Orhan are located in Vitry, France, San Luis Potosi, Mexico, Dolny Kubin, Slovakia, Barcelona, Spain, Birmingham, U.K., Archbold, Ohio, Paris, Tennessee, and Rochester Hills, Michigan. Collectively, the operations manufacture fuel lines, power-assisted steering products, heating, ventilation, and air conditioning under body products, engine and transmission cooling lines, exhaust gas recirculation tubes, and airbag fill tubes. These operations employ approximately 1,750 people in seven countries. Coupled Products Transaction Overview The coupled products plants and/or assets proposed to be sold to Coupled Products Acquisition LLC, are located in, San Luis Potosi, Mexico, and Columbia City, Indiana, Pensacola, Florida, Rochester Hills, Michigan, and Upper Sandusky and Wharton, Ohio. The coupled products assets to be sold in San Luis Potosi and Rochester Hills are different from the assets in these same locations that are part of the Fluid Products Hose and Tubing transaction. Collectively, the operations manufacture power-assisted steering products, heating, ventilation, and air conditioning under-engine products, and brake products. The operations employ approximately 2,130 people and reported consolidated revenues of approximately US$200 million in 2006. The business is being sold for a nominal purchase price and the buyer will assume certain liabilities of the business at closing. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and $6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. TK ALUMINUM: Units Begin Consent Solicitation for Senior Notes -------------------------------------------------------------- Teksid Aluminum Luxembourg S.a.r.l., S.C.A., a subsidiary of TK Aluminum Ltd., has commenced a solicitation of consents from each holder of its outstanding 11-3/8% Senior Notes due 2011 pursuant to a consent solicitation statement dated June 1, 2007, to implement proposed amendments to the indenture governing the Senior Notes and to the immediate effectiveness of a waiver in respect of the deferral of the Company's obligations to tender for Senior Notes with the net proceeds of the sale of Teksid Aluminum Poland S.p. z.o.o. The consent solicitation will expire at 10:00 a.m., New York City time (3:00 p.m., London time), on June 8, 2007, unless extended or earlier terminated. Adoption of the proposed amendments, the effectiveness of the waiver and execution of a supplemental indenture giving effect to the proposed amendments requires the receipt of consents of at least a majority of the then aggregate outstanding principal amount of Senior Notes on or prior to the Expiration Date. Once the Company receives the Requisite Consents, it will execute the Supplemental Indenture. Noteholders who consent at or prior to the execution of the Supplemental Indenture may revoke their consents at any time prior to the execution of the Supplemental Indenture, but not thereafter. By delivering their consents, Noteholders are consenting to (i) the immediate effectiveness of a waiver of any Default or Event of Default arising from and any claims relating to the Company's failure to comply with the sixth paragraph of Section 11.15(b)(i) of the Indenture, and (ii) the proposed indenture amendments that will amend the Indenture to: (a) allow the sale of the Company's equity interest in Cevher Dokum Sanayi A.S. to the majority owner, Cevher Jant Sanayi A.S., (b) extend the time by which an offer to purchase Senior Notes after the sale of Teksid Aluminum Poland S.p. z.o.o. is to be made to no later than June 19, 2007, and (c) to fix a technical error in the Indenture. Houlihan Lokey Howard & Zukin (Europe) Limited and Cadwalader, Wichersham & Taft LLP, advisors to the ad hoc committee of bondholders, have advised the Company that holders indicating ownership of a majority of the outstanding Senior Notes have expressed agreement in principle to: (i) the proposed Turkish Interest Sale and (ii) the waiver in respect of the deferral of the Company's obligations to tender for Senior Notes with the net proceeds of the Teksid Poland Sale. Assuming these holders do consent as they have indicated, the Requisite Consents will be obtained. As soon as the Requisite Consents are obtained, the Company intends to execute the Supplemental Indenture. There will not be any consent fee offered to holders of Senior Notes in conjunction with the consent solicitation. The completion of the consent solicitation is subject to, among other things, these conditions: -- the valid receipt, prior to the Expiration Date, of the Requisite Consents, and the due execution of the Supplemental Indenture; and -- certain other general conditions described in the Statement. These conditions are for the Company's sole benefit and the Company may waive them in whole or in part at any or at various times prior to the expiration of the consent solicitation in its sole discretion. In addition, subject to the terms set forth in the Statement, the Company expressly reserves the right, but will not be obligated, at any time or from time to time, on or prior to the Expiration Date, to extend or amend the consent solicitation in any respect, subject to applicable law. About Teksid Aluminum Teksid Aluminum -- http://www.teksidaluminum.com/-- manufactures aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings, and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America, and Asia. The company maintains operations in Italy, Brazil, and China. Until Sept. 2002, Teksid Aluminum was a division of Teksid S.p.A., which was owned by Fiat. Through a series of transactions completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. * * * As reported in the TCR-Europe on May 9, 2007, Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. In January 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Bermuda-incorporated TK Aluminum Ltd., a manufacturer of aluminum auto parts, to 'SD' from 'CCC-'. It also lowered its long-term debt rating on the EUR240 million senior unsecured notes issued by Teksid Aluminum Luxembourg S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'. At the same time, the ratings were removed from CreditWatch, where they had been placed with developing implications on Nov. 6, 2006, following TKA's announcement that it had entered into a definitive agreement to sell some of its assets to Tenedora Nemak S.A., de C.V. =================== K A Z A K H S T A N =================== ALTYN AI: Proof of Claim Deadline Slated for July 13 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Altyn Ai insolvent. Creditors have until July 13 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27, 67-7 Aktau Mangistau Kazakhstan Tel: 8 (3292) 41-00-42 8 701 537 15-59 ARAY-KAA LLP: Creditors Must File Claims July 6 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Aray-Kaa insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Valihanov Str. 46-38 Almaty Kazakhstan Tel: 8 (3272) 73-45-80 8 (3272) 56-98-06 8 701 516 69-72 ATAKENT-TARAZ LLP: Claims Filing Period Ends July 6 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl has declared LLP Atakent-Taraz insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Jambyl Suleimenov Str. 17 (11a) Taraz Jambyl Kazakhstan Tel: 8 (3262) 43-76-49 SAHAT LLP: Claims Registration Ends July 6 ------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Sahat 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 SULAR LLP: Creditors' Claims Due July 6 --------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Sular insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Building of Rail Road Station Room 7 Second Floor Micro District 28 Aktau Mangistau Kazakhstan Tel: 8 (3292) 41-15-89 TALANT 2000: Proof of Claim Deadline Slated for July 13 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Talant 2000 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 TORE LLP: Creditors Must File Claims July 6 ------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Tore 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 Kazakhstan Tel: 8 (3112) 51-77-10 TURAN LLP: Claims Filing Period Ends July 6 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP International Trade House Turan insolvent. Creditors have until July 6 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Jahaev Str. 71 Kyzylorda Kazakhstan VEKTOR 2000: Claims Registration Ends July 6 -------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Vektor 2000 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 =================== K Y R G Y Z S T A N =================== BESLER TEKSIL: Creditors Must File Claims by July 11 ---------------------------------------------------- Foreign Turkish LLC Besler Tekstil Ltd. has declared insolvency. Creditors have until July 11 to submit written proofs of claim to: Foreign Turkish LLC Besler Tekstil Ltd. Kievskaya Str. 95a Bishkek Kyrgyzstan =================== L U X E M B O U R G =================== DELPHI CORP: Inks US$55.6 Mln Sale Deal for Catalyst Business --------------------------------------------------------------- Delphi Corporation and certain of its affiliates entered into a sale and purchase agreement with Umicore for the sale of its global OE and aftermarket catalyst business. Subject to the terms and conditions of the agreement, the aggregate purchase price for the assets related to the catalyst business is US$55.6 million, subject to adjustments. As part of Delphi's transformation plan, which was reported on March 31, 2006, Delphi identified the catalyst business as a non-core business line that would be better positioned within another firm. As required under the U.S. Bankruptcy Code, Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York requesting a hearing on June 26, 2007, to approve bidding procedures, and a hearing on Aug. 16, 2007, to approve the sale of assets. Following the completion of the bidding procedures process, including a potential competitive auction, the sale is subject to court approval and other closing conditions, such as certain competition approvals, completion of consultation procedures with certain unions and works councils, and completion of the closing documents. Delphi anticipates the sale closing during the third quarter of 2007. As outlined in the motion filed with the U.S. Bankruptcy Court, under the sale and purchase agreement between Delphi and Umicore, Umicore will acquire substantially all of these assets: -- machinery and working capital; -- related technology and intellectual property; -- manufacturing facilities in Tulsa, Oklahoma; Florange, France; Port Elizabeth, South Africa; and certain licensing agreements (with Varroc Ltd.) for the Indian for two- and three-wheeled vehicles; -- in connection with the sale, Umicore will also hire certain employees of the catalyst business it acquires from Delphi; -- in addition, Delphi and Umicore will enter into component supply agreements, and transitional toll manufacturing and/or service arrangements for operations in Shanghai, China; Clayton, Australia; San Luis Potosi, Mexico; the Flint Technical Center in Flint, Michigan; and the Luxembourg Technical Center in Bascharage, Luxembourg. Delphi will carefully manage the transition of the business and the sale will be completed in coordination with Delphi's customers, employees, unions and other stakeholders. The catalyst, which includes a ceramic substrate coated with precious metals, is located inside a catalytic converter. The catalytic converter facilitates the chemical reactions that change engine exhaust emissions (primarily hydrocarbons, carbon monoxide and oxides of nitrogen), collected in the exhaust manifold, into water vapor, carbon dioxide and nitrogen. Catalytic converters make vehicles more environmentally friendly and help meet tailpipe emissions requirements. Although the company is selling its catalyst business, it will continue to provide full engine management systems, including air and fuel management, combustion and valvetrain technology, and exhaust systems technology through its gas EMS product business unit. About Umicore Based in Brussels, Belgium, Umicore NV SA is a materials technology group. Its activities are centered on four business areas: Advanced Materials, Precious Metals Products and Catalysts, Precious Metals Services and Zinc Specialties. Each business area is divided into market-focused business units. The Umicore Group has industrial operations on all continents and serves a global customer base and currently employs some 17,000 people. About Delphi Corporation Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11.44 billion in total assets and US$23.85 billion in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. TEKSID ALUMINUM: Begins Consent Solicitation for Senior Notes ------------------------------------------------------------- Teksid Aluminum Luxembourg S.a.r.l., S.C.A., a subsidiary of TK Aluminum Ltd., has commenced a solicitation of consents from each holder of its outstanding 11 3/8% Senior Notes due 2011 pursuant to a consent solicitation statement dated June 1, 2007, to implement proposed amendments to the indenture governing the Senior Notes and to the immediate effectiveness of a waiver in respect of the deferral of the Company's obligations to tender for Senior Notes with the net proceeds of the sale of Teksid Aluminum Poland S.p. z.o.o. The consent solicitation will expire at 10:00 a.m., New York City time (3:00 p.m., London time), on June 8, 2007, unless extended or earlier terminated. Adoption of the proposed amendments, the effectiveness of the waiver and execution of a supplemental indenture giving effect to the proposed amendments requires the receipt of consents of at least a majority of the then aggregate outstanding principal amount of Senior Notes on or prior to the Expiration Date. Once the Company receives the Requisite Consents, it will execute the Supplemental Indenture. Noteholders who consent at or prior to the execution of the Supplemental Indenture may revoke their consents at any time prior to the execution of the Supplemental Indenture, but not thereafter. By delivering their consents, Noteholders are consenting to (i) the immediate effectiveness of a waiver of any Default or Event of Default arising from and any claims relating to the Company's failure to comply with the sixth paragraph of Section 11.15(b)(i) of the Indenture, and (ii) the proposed indenture amendments that will amend the Indenture to: (a) allow the sale of the Company's equity interest in Cevher Dokum Sanayi A.S. to the majority owner, Cevher Jant Sanayi A.S., (b) extend the time by which an offer to purchase Senior Notes after the sale of Teksid Aluminum Poland S.p. z.o.o. is to be made to no later than June 19, 2007, and (c) to fix a technical error in the Indenture. Houlihan Lokey Howard & Zukin (Europe) Limited and Cadwalader, Wichersham & Taft LLP, advisors to the ad hoc committee of bondholders, have advised the Company that holders indicating ownership of a majority of the outstanding Senior Notes have expressed agreement in principle to: (i) the proposed Turkish Interest Sale and (ii) the waiver in respect of the deferral of the Company's obligations to tender for Senior Notes with the net proceeds of the Teksid Poland Sale. Assuming these holders do consent as they have indicated, the Requisite Consents will be obtained. As soon as the Requisite Consents are obtained, the Company intends to execute the Supplemental Indenture. There will not be any consent fee offered to holders of Senior Notes in conjunction with the consent solicitation. The completion of the consent solicitation is subject to, among other things, these conditions: -- the valid receipt, prior to the Expiration Date, of the Requisite Consents, and the due execution of the Supplemental Indenture; and -- certain other general conditions described in the Statement. These conditions are for the Company's sole benefit and the Company may waive them in whole or in part at any or at various times prior to the expiration of the consent solicitation in its sole discretion. In addition, subject to the terms set forth in the Statement, the Company expressly reserves the right, but will not be obligated, at any time or from time to time, on or prior to the Expiration Date, to extend or amend the consent solicitation in any respect, subject to applicable law. About Teksid Aluminum Teksid Aluminum -- http://www.teksidaluminum.com/-- manufactures aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings, and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America, and Asia. The company maintains operations in Italy, Brazil, and China. Until Sept. 2002, Teksid Aluminum was a division of Teksid S.p.A., which was owned by Fiat. Through a series of transactions completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. * * * As reported in the TCR-Europe on May 9, 2007, Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd. as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. In January 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Bermuda-incorporated TK Aluminum Ltd., a manufacturer of aluminum auto parts, to 'SD' from 'CCC-'. It also lowered its long-term debt rating on the EUR240 million senior unsecured notes issued by Teksid Aluminum Luxembourg S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'. At the same time, the ratings were removed from CreditWatch, where they had been placed with developing implications on Nov. 6, 2006, following TKA's announcement that it had entered into a definitive agreement to sell some of its assets to Tenedora Nemak S.A., de C.V. =========== R U S S I A =========== AKAR OJSC: Creditors Must File Claims by June 19 ------------------------------------------------ Creditors of OJSC Akar have until June 19 to submit proofs of claim to: T. Strelnikova Insolvency Manager Office 16 K.Marksa Pr. 34 A 644042 Omsk Russia The Arbitration Court of Tyumen will convene on June 28 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A-70-636/3-07. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: OJSC Akar Building 4 Gileevskaya Rosha 625000 Tyumen Russia AURORA CJSC: Creditors Must File Claims by July 19 -------------------------------------------------- Creditors of CJSC Aurora have until July 19 to submit proofs of claim to: G. Andreeva Insolvency Manager Post User Box 6492 50 Let Oktyabrya Str. 44 Tyumen Russia The Arbitration Court of Tyumen commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-70-6738/3-06. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: CJSC Aurora Moskovskiy Trakt 14 Tyumen Russia FENIKS CJSC: Creditors Must File Claims by June 19 -------------------------------------------------- Creditors of CJSC Feniks (TIN 4010001314) have until June 19 to submit proofs of claim to: F. Amarov insolvency manager Sovetskaya Str. 106 248032 Kaluga Russia The Arbitration Court of Kaluga commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A23-4458/05B-17-75. The Court is located at: The Arbitration Court of Kaluga Staryj Torg Square 4 Kaluga Region Russia The Debtor can be reached at: CJSC Feniks Kuzminichi Kuybyshevskiy Kaluga Russia FRUNZE OJSC: Creditors Must File Claims by July 19 -------------------------------------------------- Creditors of OJSC Factory Named After Frunze (TIN 5835020969) have until July 19 to submit proofs of claim to: V. Platonov Insolvency Manager Lenina Str. 3 440039 Penza Russia The Arbitration Court of Samara commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-1398/2006. The Debtor can be reached at: OJSC Factory Named After Frunze Promzona-1 Otradny Kinel-Cherkasskiy 446300 Samara Russia GAZPROM NEFT: Mulls Joint Venture with Statoil ASA -------------------------------------------------- OAO Gazprom Neft and Statoil ASA will review possible joint projects in Russia and abroad, Kommersant reports citing a joint statement by both firms. �With Gazprom Neft and Statoil bringing together complementary technologies and operational experience, we aim to build on this [agreement] to realize tangible business opportunities in Russia and abroad,� Kristoffer Maroe, president of Statoil Russia, said. Under the deal, Statoil will contribute its offshore technology, especially in exploration, Arctic developments and in the execution of projects, Kommersant says. Mr. Maroe told Kommersant that the companies will cooperate in the northern part of the Russian Arctic and the shelf of Sakhalin. Russian analysts, Kommersant relates, said Statoil will also provide financing for the early stages of the projects. Headquartered in Stavanger, Norway, -- http://www.statoil.com/-- Statoil ASA explores, develops and produces oil and natural gas from the Norwegian Continental Shelf. It operates through four segments: Exploration and Production Norway, International Exploration and Production, Natural Gas, and Manufacturing and Marketing. About Gazprom Neft Headquartered in Moscow, Russia, OAO Gazprom Neft -- http://www.gazprom-neft.ru/-- explores, produces, refines, markets, produces and sells petroleum products. The Company holds oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as in the Omsk and Tomsk regions, and in Chukotka. The Company's main oil processing center is the Omsk Refinery. * * * As of May 28, 2007, Gazprom Neft carries a Ba1 Corporate Family and Ba2 Senior Unsecured Debt ratings from Moody's. Outlook is positive. Gazprom Neft also carries BB+ Long-Term Foreign Issuer Credit and Local Issuer Credit ratings from Standard & Poor's. Outlook is positive. GUBKINO CJSC: Creditors Must File Claims by June 19 --------------------------------------------------- Creditors of CJSC Gubkino have until June 19 to submit proofs of claim to: V. Sakhno Temporary Insolvency Manager Post User Box 90 123290 Moscow Russia The Arbitration Court of Orel will convene at 10:00 a.m. on Aug. 1 to hear the bankruptcy supervision procedure on CJSC Gubkino. The case is docketed under Case No. A48-669/07-20b. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: CJSC Gubkino Gubkino Maloarkhangelskiy Orel Russia KIREEV-SEL-KHOZ-TEKHINKA: Creditors Must File Claims by June 19 --------------------------------------------------------------- Creditors of LLC Kireev-Sel-Khoz-Tekhinka (OGRN 1027101679153) have until June 19 to submit proofs of claim to: A. Klepikov Insolvency Manager Arsenalnaya Str. 1-D 300002 Orel Russia The Arbitration Court of Tula will convene at 10:00 a.m. on Aug. 21 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A68-1359/07-53/B. The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: LLC Kireev-Sel-Khoz-Tekhinka Tesakova Str., 9 Kireevsk 301260 Tula Russia MEZENSKIY SAW: Creditors Must File Claims by June 19 ---------------------------------------------------- Creditors of LLC Mezenskiy Saw and Wood Working Combine have until June 19 to submit proofs of claim to: A. Grishko Insolvency Manager Shelgunova Str. 2 Kamenka Mezenskiy 164762 Arkhangelsk Russia The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-3400/05-27. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: LLC Mezenskiy Saw and Wood Working Combine Shelgunova Str. 2 Kamenka Mezenskiy 164762 Arkhangelsk Russia NOVOLIPETSK STEEL: Shareholders Okay Annual Results & Dividend -------------------------------------------------------------- OJSC Novolipetsk Steel reveals the results of voting at the Annual General Meeting held on June 5, 2007. Shareholders approved the Company's 2006 annual report, annual financial statements, statement of income, and allocation of profit including dividend payment for the financial year 2006. Shareholders elected members of the Board of Directors, President of the Company (Chairman of the Management Board), the Company's Internal Audit Commission and approved amendments to the Company's Charter, Regulations on the Board of Directors and the Dividend Policy of NLMK. NLMK's shareholders approved the final dividend for 2006 of RUR3.0 per ordinary share. Including the interim dividend of RUR1.5 per ordinary share already paid for the first six months of 2006, the AGM approved the payment of an additional RUR1.5 per ordinary share. Payment of the dividend on ordinary shares will be made before Sept. 3, 2007. NLMK transfers funds for dividend payments on Global Depositary Shares to the depositary bank on July 25, 2007. Depositary bank sets payment date no later than 5 days after receipt of funds. Dividends on GDSs will be paid, by default, in U.S. dollars based on US$/RUR spot F/X rate on the day of currency conversion by the depositary bank. NLMK shareholders have elected nine members to the Board of Directors: -- Vladimir Lisin (Chairman), -- Oleg Bagrin, -- Bruno Bolfo (independent director), -- Igor Fyodorov, -- Nikolai Gagarin, -- Dmitry Gindin (independent director), -- Karl Doering (independent director), -- Randolph Reynolds (independent director), and -- Vladimir Skorokhodov. NLMK currently has four independent directors. Alexey Lapshin was elected President of the Company and Chairman of the Management Board. CJSC PricewaterhouseCoopers Audit was approved as the Auditor for 2007. NLMK's shareholders also approved amendments to the Charter, Regulations on the Board of Directors and Dividend Policy. In accordance with current Russian Federation Law, the Annual General Meeting of shareholders approved a transaction (loan agreement) between OJSC Novolipetsk Steel (borrower) and OJSC Stoilensky GOK (lender) for a loan amount of up to RUR10,900,000,000 (interest rate of up to 8.5 percent per annum, repayment date on or prior to Dec. 1, 2009). NLMK's shareholders approved the remuneration of members of NLMK's Board of Directors for 2006. The remuneration was determined in accordance with the �Regulations on the Board of Directors members' remuneration.� The total remuneration of Board Members for 2006 amounted to US$1,450,250 including annual bonus of US$1,365,000. About Novolipetsk Headquartered in Lipetsk, Russia, Novolipetsk Steel OJSC -- http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot- rolled steel, and a variety of value-added steel products, such as cold-rolled sheet, electrical steel and other specialty flat products. The group also operates in Denmark. The group entered the Danish steel market in the first quarter of 2006 by acquiring a 100% stake at DanSteel A/S. * * * In April 2007, Moody's Investors Service's confirmed its Ba1 Corporate Family Rating for Novolipetsk Steel OJSC. Moody's also assigned a Ba1 Probability-of-Default rating to the company. In a TCR-Europe report on Jan. 17, Fitch Ratings assigned OJSC Novolipetsk Steel an Issuer Default BB+ rating, a Short-term B rating and a National Long-term AA rating. Fitch said The Outlooks on the Issuer Default and National Long-term ratings are Stable. At the same time, Standard & Poor's Ratings Services said that its ratings and outlook on Russian steelmaker OJSC Novolipetsk Steel (NLMK;BB+/Stable/--; Russia national scale 'ruAA+') are unchanged by the announcement of NLMK's acquisition of a 50% share in a joint venture with Duferco Group for US$850 million. OGK-5 JSC: Enel SpA Acquires 25% Stake for RUR39.2 Billion ---------------------------------------------------------- Enel S.p.A. has won an auction to acquire a 25.03% stake in JSC OGK-5 for RUR39.2 billion, RIA Novosti reports. The TCR-Europe reported on April 27 that Enel would participate in the June 6 auction of RAO UES' 25.03% stake in OGK-5. Gazprom and KES Holding were also interested in the OGK-5 auction. RAO will keep a controlling stake in OGK-5 with its 50% holding. Enel outbid rivals E.ON Russia Power, RUSAL and OAO Novatek, RIA NOvosti reports. The bidding price for the stake started at RUR24.6 billion. About Enel S.p.A. Enel S.p.A. is Italy's largest power company, and Europe's third largest listed utility by market capitalization. Listed on the Milan and New York stock exchanges since 1999, Enel has the largest number of shareholders of any European company, at some 2.3 million. It has a market capitalization of about EUR50 billion at current prices. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * In connection with Moody's Investors Service's 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, the rating agency confirmed its Ba3 Corporate Family Rating for JSC OGK-5. Moody's also assigned a Ba3 Probability-of-Default rating to the company. PURE WATER: Creditors Must File Claims by July 19 ------------------------------------------------- Creditors of LLC Pure Water have until July 19 to submit proofs of claim to: A. Biryukov Insolvency Manager Post User Box 2004 Central Post Office 650000 Kemerovo Russia The Arbitration Court of Tomsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67-7620/06. The Debtor can be reached at: LLC Pure Water Kazakhstan Location Aleksandrovskoye Tomsk Russia RASSVET LLC: Creditors Must File Claims by June 19 -------------------------------------------------- Creditors of LLC Agro Company Rassvet have until June 19 to submit proofs of claim to: D. Anisimov Temporary Insolvency Manager N. Binaradka Stavropolskiy Smolensk Russia The Arbitration Court of Smolensk will convene at 1:00 p.m. on July 10 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A55-17647/2006. The Debtor can be reached at: LLC Agro Company Rassvet N. Binaradka Stavropolskiy Smolensk Russia STROY-DETAIL OJSC: Creditors Must File Claims by June 19 -------------------------------------------------------- Creditors of OJSC Stroy-Detail (TIN 532200808, KPP 532201001) have until June 19 to submit proofs of claim to: Y. Romanov Insolvency Manager Office 21 Khutynskaya Str. 5 173020 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. A44-466/01-S-4-k. The Debtor can be reached at: OJSC Stroy-Detail Stroitelej Str. 8 Staraya Russa 175200 Novgorod Russia TRITIKUM CJSC: Creditors Must File Claims by June 19 ---------------------------------------------------- Creditors of CJSC Tritikum (TIN 7208001207) have until June 19 to submit proofs of claim to: N. Grigoryev Insolvency Manager Ishimskaya Str. 5 Kazanskoye 627420 Tyumen Russia The Arbitration Court of Tyumen commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A-70-1375/3-2007. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: CJSC Tritikum Gagarina Str. 2 Partizan Abatskiy 627563 Tyumen Russia URAL-ENERGO CJSC: Creditors Must File Claims by July 19 ------------------------------------------------------- Creditors of CJSC Ural-Energo have until July 19 to submit proofs of claim to: V. Kuzyaev Insolvency Manager Post User Box 1515 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. A47-1498/2007-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: CJSC Ural-Energo Gubina Str. 1A Novotroitsk 462356 Orenburg Russia VIKULOVSKIY TECHNOLOGY: Asset Sale Slated for June 20 ----------------------------------------------------- V. Kravchenko, the insolvency manager and bidding organizer for CJSC Vikulovskiy Technology Centre, will open a public auction for the company's properties at 3:00 p.m. on June 20 at: V. Kravchenko Office 242 Melnikajte Str. 106 Tyumen Russia The company has set a RUR32,990,922 starting price for the auctioned assets. Interested participants have until June 14 to deposit an amount fo RUR50,000 to: CJSC Vikulovskiy Technology Centre Settlement Account 40702810867440170003 Correspondent Account 30101810800000000651 BIK 047102651 Zapadno-Sibirskiy Bank of Sberbank of RF Bidding documents must be submitted to: V. Kravchenko Office 242 Melnikajte Str. 106 Tyumen Russia The Debtor can be reached at: CJSC Vikulovskiy Technology Centre Vikulovo Vikulovskiy Tyumen Russia VIMPEL-COMMUNICATIONS: Supreme Court Upholds URS Acquisition ------------------------------------------------------------ The Supreme Arbitration Court of Russia has ruled in favor of OJSC Vimpel-Communications in one of the lawsuits filed by Telenor East Invest AS. The company is pleased with the court's decision which upheld the validity of the September 2005 shareholder vote that approved the acquisition of CJSC Ukrainian Radio Systems as an interested party transaction. The ruling is final and may not be appealed. With the ruling, VimpelCom has conclusively won two of the three lawsuits brought by Telenor East Invest AS in connection with the acquisition of URS. The remaining lawsuit brought by Telenor East Invest AS to declare invalid and unwind the URS transaction was won by VimpelCom in the lower court and has been appealed by Telenor. The appeal is scheduled to be heard by the Court of Appeals on June 25, 2007. VimpelCom will continue to vigorously defend its position in this lawsuit. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * In a TCR-Europe report on April 16, 2007, Moody's Investors Service confirmed its Ba2 Corporate Family Rating for OJSC Vimpel-Communication and assigned a Ba2 Probability-of-Default rating to the company. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- 10% Senior Unsecured Regular Bond/Debenture Due 2009 Ba2 Ba2 LGD4 52% 8.375% Senior Unsecured Regular Bond/Debenture Due 2011 Ba2 Ba2 LGD4 52% 8% Senior Unsecured Regular Bond/Debenture Due 2010 Ba2 Ba2 LGD4 52% 8.25% Senior Unsecured Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD4 52% As reported in the TCR-Europe on Oct. 12, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russia-based mobile telecommunications operator Vimpel-Communications (JSC) to 'BB+' from 'BB', reflecting the company's continuing strong performance. S&P said the outlook is stable. VYSHNEVOLOTSKIY TEXTILE: Creditors Must File Claims by July 19 -------------------------------------------------------------- Creditors of CJSC Vyshnevolotskiy Textile have until July 19 to submit proofs of claim to: A. Popova Insolvency Manager Office 9 Rumyantseva Str. 9 Tver Russia The Arbitration Court of Tver commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A66-9288/2006. The Court is located at: The Arbitration Court of Tver Room 7 Sovetskaya Str. 23b Tver Russia The Debtor can be reached at: CJSC Vyshnevolotskiy Textile Krasnaya Str. 1 V. Volochek 171158 Tver Russia WEST-MD OJSC: Creditors Must File Claims by July 19 --------------------------------------------------- Creditors of OJSC West-MD have until July 19 to submit proofs of claim to: A. Chernov Insolvency Manager Post User Box 1927 400087 Volgograd Russia The Arbitration Court of Volgograd commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-15174/06-S48. The Debtor can be reached at: OJSC West-MD Krasnopolyanskaya Str. 15 Volgograd Russia ========= S P A I N ========= TOWER AUTOMOTIVE: Judge Gropper Approves Disclosure Statement ------------------------------------------------------------- The Honorable Allen L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York approved a first amended disclosure statement explaining Tower Automotive, Inc., and its debtor subsidiaries' First Amended Joint Plan of Reorganization, at a hearing held June 5, 2007. Judge Gropper held that the First Amended Disclosure Statement contains adequate information that would enable creditors to make an informed decision on whether to accept or reject the Plan. The Debtors filed the First Amended Disclosure Statement and Plan on June 4, 2007, to include, among others, revisions to the classification and treatment of claims and interests, and an analysis of the estimated recoveries for the Debtors' various unsecured creditor constituencies. Parties have until July 6 to file objections to the Plan. Revised Classification of Claims and Interests Under the First Amended Plan, the description for Class 4 claims was changed to International Holding Company Debtor Claims from R.J. Bondholder Claims. The estimated recovery for Class 3 Second Lien Claims was also raised to US$154,225,000 from $41,000,000. According to the Plan, the US$154,225,000 is subject to upward adjustment for fees and expenses allowable and payable under the Prepetition Credit Agreement and the Final DIP Order, and subject to downward adjustment for amounts returned to the Second Lien Agent from the Second Lien Collateral Account. As of June 4, 2007, the balance of the Second Lien Collateral Account is estimated to be approximately US$113,000,000. The Amended Plan provides that the Second Lien Claim will be an Allowed Secured Claim in the amount of the Second Lien Base Claim without defense, offset, recoupment, counterclaim or reduction, other than as set forth in the Plan. On the Plan Effective Date, the Second Lien Collateral Account Final Balance will be returned to the Second Lien Agent for the Pro Rata benefit of the Second Lien Lenders, and the Second Lien Adjusted Base Claim will be paid in full in Cash. In addition, (i) each undrawn Prepetition Letter of Credit will be returned to the issuer undrawn and marked canceled, and (ii) the Second Lien Agent's Fees incurred prior to the Effective Date, but not paid prior to or on the Effective Date, will be paid within 10 business days after submission of invoices to the Debtors and the purchaser -- TA Acquisition Company, LLC -- it being understood that nothing will limit the Debtors' or the Official Committee of Unsecured Creditors' right to review and determine that the fees are reasonable, or the Purchaser's right to review and object to claims set forth in the Purchase Agreement. Recovery Analysis The Amended Plan relates that the Debtors, the Creditors Committee and their advisors worked together to develop a framework to determine estimated recoveries for the Debtors' various unsecured creditor constituencies and are in agreement over the methodology that underlies the analysis. The substantive assumptions that underlie the recovery analysis include (i) the determination of which legal entities should be substantively consolidated, (ii) the attribution of distributable value to the entities and (iii) the allocation of claims by legal entity. The Debtors' advisors, in consultation with the Committee's advisors, applied this methodology to determine the recoveries under the Plan for the various unsecured creditor constituents in Classes 4 through 8. The analysis aggregates Tower's legal entities -- both domestic and international -- into seven entities or groups of entities. The entities are: 1. Tower Inc., the Debtors' top-tier holding company; 2. R.J. Tower, the Debtors' intermediate holding company; 3. the Substantively Consolidated Debtors, which include the Debtors various domestic subsidiaries below R.J. Tower; 4. the International Holding Company Debtors, which are domestic holding companies for the Debtors' interests in certain international operations, notably including the European and Korean operations; and 5 - 7. three first-tier international subsidiaries of R.J. Tower, Changchun Tower Golden Ring Automotive Products Company, Tower Automotive Mexico S. De R.L. de C.V., the holding company for the Debtors' 40% joint venture interest in Metalsa S de R.L. de C.V., and Tower Automotive Canada. With the seven legal entities identified, the recovery analysis assumes an allocation of distributable value implied by the purchase price as provided in the Purchase Agreement to each entity based principally on EBITDA contribution with adjustments made to take into consideration the relative performance of businesses in different geographic regions and other regional or legal entity specific considerations. Intercompany claims that are included in the recovery analysis are (i) a note payable from Tower Automotive Deutscheland GmbH & Co. to R.J. Tower for US$25,100,000, (ii) a note payable from Tower Automotive Europe B.V. to R.J. Tower for US$16,700,000 and (iii) two notes payable from Tower Automotive International B.V. to Tower Automotive International Holdings, Inc. totaling $320,100,000. All amounts are estimated as of March 31, 2007, and assume an exchange rate of US$1.3355 per Euro. Taken together, the recovery analysis assumes that the DIP Revolver recovers value initially from the Debtors' domestic operations and then, because the value of the Debtors' domestic operations is not sufficient to fully satisfy the DIP Revolver, from the DIP Lenders' claims against the Debtors' international subsidiaries and the Debtors' interests in the international subsidiaries on a pro-rata basis. The DIP Term Loan is assumed to recover from the Debtors' foreign subsidiaries pro-rata based on the remaining distributable value after satisfying the DIP Revolver. The Second Lien Claims are assumed to recover value similar to the methodology employed by the DIP Term Loan. The recovery analysis assumes the DIP Lenders and Second Lien Lenders may recover pro-rata based on distributable value on account of their super-priority administrative expense claims. Because the value ascribed to the Debtors' domestic operations is fully offset to satisfy senior claims and debt -- including Administrative Claims, Other Priority Claims, Other Secured Claims and a portion of the DIP Revolver -- the residual balance of the DIP Revolver, the DIP Term Loan and the Second Lien Claims recover value exclusively from the Debtors' international subsidiaries and the Debtors' interests in the international subsidiaries, whether on account of their secured claims or their super-priority administrative claims. Special Provisions on Subordinated Securities Claims The Amended Plan provides that nothing will impact in any way the right or ability of the lead plaintiffs in the Securities Litigation to pursue and recover on any Claims against the Debtors solely to the extent of any coverage provided by any insurance policy, including any Directors' and officers' insurance policy. Nothing will also release, enjoin, preclude, or otherwise affect in any way the prosecution of the claims asserted, or which may be asserted, against any non-Debtor in the Securities Litigation or the right of the lead plaintiffs in the litigation to (a) pursue further litigation, including without limitation appeals, against any non-Debtor defendants, or (b) to enter into or enforce any settlement or enforce any judgment obtained in connection with or relating to the litigation or appeals, provided that the terms and conditions of the stipulation and order between the Debtors and the Securities Plaintiffs resolving the Debtors' request to reclassify Securities Plaintiffs' Claims will remain in full force and effect. Rejection Claims All proofs of claim arising from the rejection of Executory Contracts or Unexpired Leases must be filed with the Voting Agent within 30 days after the earlier of: (a) the date of entry of a Court order approving the rejection; and (b) the Plan Effective Date. Any Claims arising from the rejection of an Executory Contract or Unexpired Lease for which proofs of Claims were not timely filed within that time period will be forever barred from assertion against the Debtors or their Estates and property, or the Trusts, unless otherwise ordered by the Court or as otherwise provided in the Plan. All Rejection Claims will, as of the Effective Date, be subject to the permanent injunction set forth in the Plan. Other Provisions Other provisions added to the Plan include the condition that the proposed Confirmation Order, any modifications of the Plan, and any material modification to the Sale Order, will be in a form and substance reasonably acceptable to the Second Lien Agent. The Debtors, the Purchaser or the Creditors Committee may seek an expedited hearing before the Bankruptcy Court to address any objection by the Second Lien Agent. In addition, nothing in the Plan, any amendment to the Plan, or in the Confirmation Order, will enjoin any claims, to the extent available under applicable non-bankruptcy law, of the United Furniture Workers Pension Fund A against the Purchaser or any non-Debtor affiliates, subsidiaries, or other third parties, including, but not limited to, any claims based on control group liability or successor liability arising from or related to the Debtors' withdrawal from the United Furniture Workers Pension Fund A, provided that the Purchaser and all the non-Debtor affiliates or subsidiaries and third parties reserve all defenses to the claims. A blacklined copy of Tower's First Amended Plan is available for free at: http://ResearchArchives.com/t/s?20b2 A blacklined copy of Tower's First Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?20b3 About Tower Automotive Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' filed their Chapter 11 Plan of Reorganization and Disclosure Statement explaining that plan on May 1, 2007. The Debtors' exclusive period to file a chapter 11 plan expired on June 6, 2007. (Tower Automotive Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TOWER AUTOMOTIVE: Plan Confirmation Hearing Scheduled on July 11 ---------------------------------------------------------------- The Honorable Allen L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York set a hearing for the confirmation of Tower Automotive, Inc., and its debtor-affiliates First Amended Joint Plan of Reorganization on July 11, 2007. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' filed their Chapter 11 Plan of Reorganization and Disclosure Statement explaining that plan on May 1, 2007. ===================== S W I T Z E R L A N D ===================== AMADONUM LLC: Creditors' Liquidation Claims Due July 1 ------------------------------------------------------ Creditors of LLC amadonum have until July 1 to submit their claims to: Tim Dellmann Liquidator Durrenburgstrasse 10 6318 Walchwiluntil Switzerland The Debtor can be reached at: LLC amadonum Walchwil ZG Switzerland ASG GASTRO: St. Gallen Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of St. Gallen commenced bankruptcy proceedings against LLC ASG Gastro on May 16. The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Christoph Schenk 9001 St. Gallen Switzerland The Debtor can be reached at: LLC ASG Gastro Augustinergasse 23 9000 St.Gallen Switzerland ASI INSURANCE: Creditors' Liquidation Claims Due June 22 -------------------------------------------------------- Creditors of JSC ASI Insurance have until June 22 to submit their claims to: JSC GHP Arbitrium Liquidator Freigutstrasse 27 8007 Zurich Switzerland The Debtor can be reached at: JSC ASI Insurance Stansstad NW Switzerland BEAT ERISMANN: Creditors' Liquidation Claims Due July 18 -------------------------------------------------------- Creditors of LLC Beat Erismann have until July 18 to submit their claims to: Beat Erismann Liquidator Tusiweg 3 5742 Kolliken Zofingen AG Switzerland The Debtor can be reached at: LLC Beat Erismann Kolliken Zofingen AG Switzerland BUBEWO LLC: Claims Registration Period Ends June 23 --------------------------------------------------- The Bankruptcy Court of Bern-Mittelland commenced bankruptcy proceedings against LLC Bubewo on April 19. Creditors have until June 23 to file their written proofs of claim. The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland Office Bern 3011 Bern Switzerland The Debtor can be reached at: LLC Bubewo Bumplizstrasse 142 3018 Bern 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 twelve 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. NIGHTHAWK RADIOLOGY: S&P Puts Corporate Credit Rating at B+ ----------------------------------------------------------- Standard & Poor's Rating Services assigned its 'B+' corporate credit rating to Coeur d'Alene, Idaho-based NightHawk Radiology Services Inc. The outlook is positive. At the same time, Standard & Poor's assigned its recovery ratings to NightHawks's US$100 million senior secured first-lien credit facilities, consisting of a US$75 million term loan B due 2013 and a US$25 million delayed draw term loan due 2013. The recovery rating of '2' indicates the expectation for substantial (70% to 90%) recovery of principal in the event of a payment default. Proceeds from the financings will be used to finance the recent acquisition of Radlinx, a privately held teleradiology services provider, for US$53 million. The remaining proceeds and the delayed draw will likely be used for future acquisitions. "The positive outlook reflects the potential for an upgrade if the company continues to grow its market share organically and through acquisitions, while maintaining an aggressive financial risk profile," explained Standard & Poor's credit analyst Rivka Gertzulin, "as well as a stable operating environment." NOVELIS CORP: Moody's Rates US$860 Million Senior 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 Limited, 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, we note 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 Headquartered in Atlanta, Georgia, Novelis is the world's largest producer of aluminum rolled products. In 2006, the company had total shipments of approximately 3.1 million tons and generated approximately US$9.8 billion in revenues. 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. Novelis South America operates two rolling plants and primary production facilities in Brazil in the Latin-American region. Novelis also has operations in Germany, Switzerland and Korea. SWISSAIR: Zurich Court Acquits Defendants in Mismanagement Trial ---------------------------------------------------------------- The District Court of Buelach near Zurich has acquitted former Swissair CEO Mario Corti and several other former managers and board members of all charges in connection with the 2001 collapse of Swissair Group, published reports say. �There is no evidence that the defendants knowingly acted to damage the company,� said Chief Judge Andreas Fischer, The Financial Times notes. The rulings came partly as a surprise as several legal observers had expected that some managers could receive conditional prison sentences or monetary fines as plaintiff lawyers asked for prison terms of up to 28 months for some key staff, the Wall Street Journal observes. However, in an unexpected twist, some managers also received monetary compensations in addition to the acquittal. According to the district court's ruling, Mr. Corti will receive a compensation worth CHF488,000 (US$401,000). The court ordered that the defendants� legal costs, estimated at about CHF3 million (US$2.5 million, EUR1.83 million), be reimbursed, FT reveals. The TCR-Europe reported on Jan. 18, 2007, that 19 of the company's top executives, board members, and advisers faced charges on criminal mismanagement and false accounting. The executives on trial denied any wrongdoing and instead blamed the collapse in air travel following the Sept. 11, 2001, terrorist attacks. The company had a cash balance of more than EUR2.3 billion in the early 1990s. However, under the leadership of former CEO Philippe Bruggisser, who is also a defendant, the group folded under the burden of stakes in loss-making counterparts. Swissair was abruptly grounded on Oct. 2, 2001, after failing to supply enough cash to pay fuel and landing fees to oil companies and airports that had refused to extend credit. Tens of thousands of passengers were stranded worldwide, and thousands of employees and shareholders suffered from the company's ruin as well as hundreds of jobs were lost and big banks had to invest billions of U.S. dollars into the successor, Swiss International Air Lines. Executives cleared of all charges include: * Mario Corti, the company's final chairman and CEO; * Board members Lukas Muhlemann and Thomas Schmidheiny; and * Eric Honegger, who briefly served as CEO, chairman, and member of the board. Other defendants, including Jan Litwinski, former CEO of the Polish airline LOT, Jacqualyn Fouse, Swissair's last chief financial officer, and other former chief financial officers, top bankers, politicians, and corporate leaders had also been absolved of the charges filed against them. Many declined to testify, for fear of incriminating themselves in possible civil cases yet to be heard, FT relates. Civil actions are being pursued in Switzerland by liquidators of the former flag carrier. Separately, in Belgium, the liquidator of Sabena, the national airline in which Swissair took a controlling stake, is also pressing for damages. About Swissair Swissair collapsed in October 2001 after accumulating CHF17 billion in debt in relation to significant investments in a number of European airlines including Sabena, Air Liberte of France, and Turkish Airlines. It defaulted on the debt during the slump that followed the Sept. 11, 2001 terrorist attacks in the U.S. The entire Swissair fleet was grounded on Oct. 2, 2001, and Swissair ceased to exist after Crossair took over most of its assets on March 31, 2002. Kurt Hoss Liquidators in Zurich liquidated the assets that Crossair did not take over. Crossair was later renamed Swiss International Air Lines Ltd. The District Courts of Zurich and Bulach in the Canton of Zurich provisionally approved the debt-restructuring moratorium petitions on Oct. 5, 2001, for: -- SAirGroup, Zurich (holding company) -- SAirLines, Zurich -- Flightlease AG, Zurich -- Swissair Schweizerische Luftverkehr AG, Kloten On Oct. 7, 2001, the Courts granted a provisional debt-restructuring moratorium to: -- Cargologic AG, Zurich -- Swisscargo AG, Zurich The Court appointed Karl Wuethrich at Wenger Plattner as the Debtors' provisional administrator. Swissair's liquidation status as of Dec. 31, 2006 -- http://www.liquidator-swissair.ch/-- listed total assets at CHF513,813,182 over total liabilities of CHF84,684,932. ============= U K R A I N E ============= AGRO-SULA LLC: Creditors Must File Claims by June 13 ---------------------------------------------------- Creditors of LLC Agro-Sula (code EDRPOU 31952170) have until June 13 to submit their proofs of claim to: Alexander Lisovenko Temporary Insolvency Manager Internationalists Str. 5 40035 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy supervision procedure on the company on April 20. The case is docketed under Case No. 6/55-07. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: LLC Agro-Sula Brodok Nedrygailovsky District 42108 Sumy Ukraine ALPHA-S LLC: Creditors Must File Claims by June 13 -------------------------------------------------- Creditors of LLC Alpha-S (code EDRPOU 30595407) have until June 13 to submit their proofs of claim to: The Economic Court of Chernigov Mir Avenue 20 14000 Chernigov Ukraine The Economic Court of Chernigov commenced bankruptcy supervision procedure on the company on April 20. The case is docketed under Case No. 9/69b. The Debtor can be reached at: LLC Alpha-S Schors Str. 54 14017 Chernigov Ukraine AUGUST LLC: Creditors Must File Claims by June 13 ------------------------------------------------- Creditors of LLC Company August have until June 13 to submit their proofs of claim to: Viacheslav Mironenko Temporary Insolvency Manager Apartment 61 Heros of Stalingrad Str. 15 Kirovograd Ukraine The Economic Court of Kiev commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 11/37. The Court is located at: The Economic Court of Kirovograd Lunacharski Str. 29 25006 Kirovograd Ukraine The Debtor can be reached at: LLC Company August Apartment 402 Kirov Str. 54/6 25006 Kirovograd Ukraine KHRISTINOVKA MIXED: Creditors Must File Claims by June 13 --------------------------------------------------------- Creditors of Agricultural OJSC Khristinovka Mixed Food and Grains Plant (code EDRPOU 31718314) have until June 13 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy renewed bankruptcy supervision procedure on the company. The case is docketed under Case No. 14-01-08/103. The Debtor can be reached at: Agricultural OJSC Khristinovka Mixed Food and Grains Plant Gogol Str. 19 Khristinovka Cherkassy Ukraine LVOV AGRICULTURAL: Claims Filing Deadline Set June 13 ----------------------------------------------------- Creditors of Lvov Agricultural LLC (code EDRPOU 30841936) have until June 13 to submit their proofs of claim to: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/72-B-06. The Debtor can be reached at: Lvov Agricultural LLC Berislav District Herson Ukraine OUR HOUSE: Creditors Must File Claims by June 13 ------------------------------------------------ Creditors of LLC Our House State Enterprise Dwelling Center (code EDRPOU 32392496) have until June 13 to submit their proofs of claim to: Liliya Kravchenko Temporary Insolvency Manager Voenny Passage 6 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy supervision procedure on the company on March 22. case is docketed under Case No. 5/33-B-07. The Court is located at: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Debtor can be reached at: LLC Our House State Enterprise Dwelling Center Voenny Passage 6 73000 Herson Ukraine PLUS LLC: Claims Filing Deadline Set June 13 -------------------------------------------- Creditors of LLC Energy Building Service Plus (code EDRPOU 31818520) have until June 13 to submit their proofs of claim to: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 6/89-B-07. The Debtor can be reached at: LLC Energy Building Service Plus Fabrichnaya Str. 6 Novaya Kakhovka Herson Ukraine ZOLOTAYA BALKA: Claims Filing Deadline Set June 13 -------------------------------------------------- Creditors of OJSC Zolotaya Balka Breadreceiving Enterprise have until June 13 to submit their proofs of claim to: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/142-B-05. The Debtor can be reached at: OJSC Zolotaya Balka Breadreceiving Enterpris Zolotaya Balka Novovorontsovsky District Herson Ukraine =========================== U N I T E D K I N G D O M =========================== ALL AMERICAN: Court OKs Asset Sale to Rock River Consortium ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida gave authority to All American Semiconductor, Inc. to proceed with the sale of substantially all of its assets to a two-party consortium of Rock River Capital LLC and its senior secured lenders, for which Harris N.A. acts as agent. The aggregate purchase price from the auction is US$15.2 million and will be paid to Harris N.A. as agent for the senior secured lenders in the form of a reduction in the senior secured lenders' secured claim. As reported in the Troubled Company Reporter on June 6, 2007, Rock River Capital was the successful bidder for substantially all of the company's operating assets and is expected to continue to operate the acquired assets as a going concern business. Rock River did not purchase the company's commercial tort claims, avoidance actions, accounts receivable and certain other miscellaneous assets. The company's senior secured lenders were the successful bidders for its accounts receivable. None of the company's commercial tort claims or avoidance actions was sold. About All American Semiconductor Based in Miami, Florida, All American Semiconductor Inc. (Pink Sheets: SEMI.PK) -- http://www.allamerican.com/-- is a distributor of electronic components manufactured by others. The company distributes a full range of semiconductors including transistors, diodes, memory devices, microprocessors, microcontrollers, other integrated circuits, active matrix displays and various board-level products. All American also distributes passive components such as capacitors, resistors and inductors; and electromechanical products such as power supplies, cable, switches, connectors, filters and sockets. The company also offers complete solutions for flat panel display products. In total, the company offers approximately 40,000 products produced by approximately 60 manufacturers. The company has 36 strategic locations throughout North America and Mexico, as well as operations in China and Western Europe. The company and its debtor-affiliates filed for Chapter 11 protection on April 25, 2007 (Bankr. S.D. Fla. Lead Case No. 07-12963). Tina M. Talarchyk, Esq., at Squire Sanders & Dempsey LLP, in West Palm Beach, Florida, represents the Debtors. Jerry M. Markowitz, Esq., at Markowitz, Davis, Ringel & Trusty, P.A., and William M. Hawkins, Esq., at Loeb & Loeb LLP, represents the Committee. As of Feb. 28, 2007, the company had total assets of US$117,634,000 and total debts of US$106,024,000. CELESTICA INC: May Be Next Acquisition Target, Analysts Say ----------------------------------------------------------- Celestica Inc. is a likely acquisition target after Flextronics International Ltd.'s move to acquire Solectron Corp., Bloomberg reports. Flextronics' bid has sparked speculation that there is likely more consolidation in the industry. Bloomberg relates, citing Scotia Capital analyst Gus Papageorgiou, that Celestica is a possible merger target since it has "the highest potential of being taken out." Bloomberg further reports that a purchase could assist the company in a possible return from the red as it has been reporting 15 losses for the past 16 quarters. According to UBS AG analyst Long Jiang, Bloomberg says that consolidation in Celestica's industry is long overdue. Celestica Inc. -- http://www.celestica.com/-- (NYSE:CLS) provides innovative electronics manufacturing services. Through its global manufacturing and supply chain network, the company delivers competitive advantage to companies in the computing, communications, consumer, industrial, and aerospace and defense end markets. Celestica operates a highly sophisticated global manufacturing network with operations in Brazil, China, Ireland, Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter on May 4, 2007, Moody's Investors Service downgraded Celestica Inc.'s corporate family rating to B1 from Ba3 and the senior subordinated note ratings to B3 from B2. Moody's also lowered the company's speculative grade liquidity rating to SGL-2 from SGL-1. DYNCORP INT'L: Earns US$18.9 Million in Fourth Quarter 2007 ----------------------------------------------------------- DynCorp International Inc. disclosed its fiscal 2007 fourth quarter and fiscal 2007 full year financial results. Fiscal 2007 Fourth Quarter Results Revenue for the 2007 fourth quarter ended March 30, 2007 was US$552.3 million, up 0.6% from revenue for the fiscal 2006 fourth quarter. Revenue from the Government Services segment for the fourth quarter decreased 2.9% over the comparable period in 2006. The lower GS revenue was attributable to reduced construction activity on the U.S. Department of State Civilian Police program. Revenue from the Maintenance and Technical Support Services -- MTSS -- segment increased 7.9% over the 2006 fourth quarter. The higher MTSS revenue was attributable to the C-21 program and an increased level of effort at Columbus AFB. Operating income for the fiscal 2007 fourth quarter increased 13.2% to US$42.9 million from the fiscal 2006 fourth quarter. Operating margin for the fiscal 2007 fourth quarter was 7.8%, compared to operating margin of 6.9% in the fiscal 2006 fourth quarter. Operating margin increased by 0.9% of revenue primarily due to strong contract performance and the effect of claims on two aviation contracts. Net income for the fiscal 2007 fourth quarter was US$18.9 million compared to net income of US$5.8 million for the comparable period in fiscal 2006. The increase in 2007 fourth quarter net income was due to improved operating margins and lower interest expense resulting from redemption of the company�s preferred stock and reductions of outstanding debt during the first quarter of fiscal 2007. Adjusted earnings before interest, taxes, depreciation, and amortization for the 2007 fourth quarter increased to US$56.7 million, or 10.3% of revenue, from US$55.6 million, or 10.1% of revenue, for the comparable period in fiscal 2006. Earnings per share for the 2007 fourth quarter improved 83.3% to US$0.33 per share from the comparable period in fiscal 2006. Fiscal 2007 Full Year Results Revenues for the fiscal year ended March 30, 2007, increased by US$115.3 million, or 5.9%, to US$2.08 billion, as compared to the company�s fiscal year ended March 31, 2006. Of the US$115.3 million increase, US$95.5 million was attributable to the GS segment and US$19.8 million was attributable to the MTSS segment. Revenues from the GS segment increased 7.5% over fiscal year 2006 to US$1.36 billion. The GS revenue growth was primarily driven by increased aviation support services of drug eradication activities under the U.S. Department of State�s Air Wing program in South America and Afghanistan, additional contingency and logistics services provided to the Africa Peacekeeping contract, foreign government construction increases and a foreign government contingency contract. The GS revenue increase was partially offset by the conclusion of four task orders under the World Wide Personal Protective Services program and contingency and logistics services provided after Hurricane Katrina. Revenues from the MTSS segment increased 2.9% over fiscal year 2006 to US$722.7 million. MTSS revenue growth was primarily driven by increases in personnel and level of effort under the Contract Field Team (CFT) program, increased domestic aviation support services provided to the U.S. Air Force under the C-21 Contractor Logistics Support program and revenue recorded in connection with wage pass-through claims. The MTSS revenue increase was partially offset by reduced U.S. government funding for the Army Propositioned Stock Afloat program and decreased services provided under the CFT contract for the V-22 program. Operating income increased 12.1% over fiscal year 2006 to US$113.5 million. Operating margin increased 30 basis points to 5.5%. The increased operating income and operating margin reflect strong performance from fixed price contracts including the Civilian Police and International Narcotics and Law Enforcement Air Wing contracts, increased level of effort on CFT, a contract modification for construction in Afghanistan, wage pass-through claims, and reduced bad debt expense. Operating expenses include US$6.5 million of costs related to severance expenses for certain former executives and bonus compensation associated with the company�s IPO. Net income was US$27.0 million in fiscal 2007, compared to US$7.2 million in fiscal 2006. The same factors positively affecting fiscal 2007 operating income resulted in improved year-over-year net income. Adjusted EBITDA increased 10.3% to US$172.2 million, or 8.3% of revenues, compared to adjusted EBITDA of US$156.1 million, or 7.9% of revenues, in fiscal 2006. Earnings per share for fiscal 2007 increased 113% to US$0.49 per share from US$0.23 during fiscal 2006. Operating cash flow increased 58% to US$86.8 million as compared to fiscal 2006. The increase was driven by higher net income, accounts payable and accrued liability activities related to the timing of payroll processing, interest payments timing and accelerated customer payments. Days sales outstanding (DSO) was at 67 days as of the end of fiscal 2007, compared to 72 days as of the end of fiscal 2006. Net debt, which is total debt less cash and cash equivalents, was US$528.5 million on March 30, 2007, a reduction of US$112.4 million year-over-year. Backlog increased 132.2% to US$6.1 billion during fiscal 2007. Included in this total is US$3.3 billion related to the award of the Intelligence and Security Command (INSCOM) contract by the U.S. Army to Global Linguist Solutions LLC, a joint venture of DynCorp International and McNeil Technologies. The incumbent contractor�s protest of the award to GLS was sustained by the Government Accountability Office (GAO). The Army subsequently filed a Request for Reconsideration with the GAO which is pending decision. Fiscal 2008 Guidance The company is issuing the following guidance for the fiscal year ending March 28, 2008, based on its current backlog and management's estimate of future contract awards. This guidance excludes the previously discussed INSCOM contract award due to the uncertain timing of when contract performance may commence. About Dyncorp International Headquartered in Irving, Texas, DynCorp International Inc. (NYSE: DCP) -- http://www.dyn-intl.com/-- provides specialized mission-critical outsourced technical services to civilian and military government agencies. The Company specializes in law enforcement training and support, security services, base operations, aviation services and operations, and logistics support. The company has more than 14,400 employees in 33 countries including Korea, and Haiti. DynCorp International, LLC, is the operating company of DynCorp International Inc. * * * As reported in the Troubled Company Reporter on June 19, 2006, Standard & Poor's Ratings Services raised its ratings, including the corporate credit rating to 'BB-' from 'B+', on DynCorp International LLC. The ratings were removed from CreditWatch where they were placed with positive implications on Oct. 3, 2005. S&P said the outlook is stable. As reported in the Troubled Company Reporter on June 13, 2006, Moody's Investors Service upgraded DynCorp International LLC's US$90 million senior secured revolver maturing Feb. 11, 2010, to Ba3 from B2; US$345 million senior secured term loan B due Feb. 11, 2011, to Ba3 from B2; US$320 million 9.5% senior subordinated notes due Feb. 15, 2013, to B3 from Caa1; Corporate Family Rating, to B1 from B2; and Speculative Grade Liquidity Rating, to SGL-2 from SGL-3. Moody's said the ratings outlook is stable. DYNCORP INT'L: Will Repurchase US$10 Mil. of Shares of Stock ------------------------------------------------------------ DynCorp International Inc.'s Board of Directors has authorized the company to repurchase up to US$10 million of its outstanding common stock. �We believe that a stock repurchase program is an effective way to enhance shareholder value and demonstrate our confidence in the long-term value of DynCorp International Inc.,� said Hebert J. Lanese, the company�s chief executive officer. The shares may be repurchased from time to time in open market conditions or through privately negotiated transactions at the company's discretion, subject to market conditions, and in accordance with applicable federal and state securities laws and regulations. Shares of stock repurchased under this plan will be held as treasury shares. The program does not obligate the company to acquire any particular amount of common stock and the program may be modified or suspended at any time at the company's discretion. The purchases will be funded from available working capital. As of March 30, 2007, the company had 57 million shares outstanding. Headquartered in Irving, Texas, DynCorp International Inc. (NYSE: DCP) -- http://www.dyn-intl.com/-- provides specialized mission-critical outsourced technical services to civilian and military government agencies. The Company specializes in law enforcement training and support, security services, base operations, aviation services and operations, and logistics support. The company has more than 14,400 employees in 33 countries including Korea and Haiti. DynCorp International, LLC, is the operating company of DynCorp International Inc. * * * As reported in the Troubled Company Reporter on June 19, 2006, Standard & Poor's Ratings Services raised its ratings, including the corporate credit rating to 'BB-' from 'B+', on DynCorp International LLC. The ratings were removed from CreditWatch where they were placed with positive implications on Oct. 3, 2005. S&P said the outlook is stable. As reported in the Troubled Company Reporter on June 13, 2006, Moody's Investors Service upgraded DynCorp International LLC's US$90 million senior secured revolver maturing Feb. 11, 2010, to Ba3 from B2; US$345 million senior secured term loan B due Feb. 11, 2011, to Ba3 from B2; US$320 million 9.5% senior subordinated notes due Feb. 15, 2013, to B3 from Caa1; Corporate Family Rating, to B1 from B2; and Speculative Grade Liquidity Rating, to SGL-2 from SGL-3. Moody's said the ratings outlook is stable. EUROTUNNEL GROUP: CEO Plans on Raising GBP680 Mln Fresh Capital --------------------------------------------------------------- Eurotunnel Group CEO Jacques Gounon aims to raise about GBP680 million of fresh capital in order to repay part of the convertible bond, which could see an increase in shareholders' stake in the restructuring company from an initial 13% to around 40%, Alistaire Osborne writes for The Telegraph. The restructuring will slash Eurotunnel's GBP6.2 billion debts to GBP2.84 million, with senior creditors repaid in full. Shareholders will be diluted to 13%, holding 2.55 billion shares in the new company, Groupe Eurotunnel, while junior creditors will share a GBP1.275 billion convertible bond. According to the report, the bond or notes redeemable for shares is in two parts. Some GBP488 million is non-redeemable by the company, giving creditors a guaranteed 33% of equity, or 6.52 billion shares. The second GBP787 million tranche is redeemable by the company over the next three years before it converts into another 10.52 billion shares, but only at a 40% premium, the Telegraph relates. Mr. Gounon plans to pay off a large portion of this in the next 13 months. "My goal is for shareholders to hold at least 40% [of the equity]," Mr. Gounon was quoted by the Telegraph as saying. "We have to raise money. I have made an assumption that with a EUR1 billion capital increase we can reach 40% for shareholders." Eurotunnel may raise fresh capital through a rights issue, the Telegraph said. "If Gounon is smart, which he is, the quicker he can have a rights issue with what is a technically overvalued share, the greater proportion of the company will end up being owned by shareholders, even if they have to pay for it," Mark McVicar, an analyst at Dresdner Kleinwort Wasserstein, told the Telegraph. The Telegraph added that Mr. Gounon believed that noteholders had no power to stop the company from buying back some of the redeemable notes. "That's clearly stated in the safeguard plan," Mr. Gounon said. Mr. Gounon also asked the remaining 90,000 U.K. shareholders who still did not tender their stock for new shares in Groupe Eurotunnel, to do so by June 14, 2007 deadline. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. EUROTUNNEL GROUP: Names Two New Non-Executive Directors ------------------------------------------------------- Eurotunnel Group's joint board appointed, Tim Yeo, MP as a non-executive director of Eurotunnel PLC and Pierre Bilger as non-executive director of Eurotunnel S.A. effective immediately, following the resignation of Jean-Louis Raymond as a director of the company. Tim Yeo is Member of Parliament for Suffolk South and chairman of the House of Commons Environmental Audit Select Committee. He was Minister of State for the Countryside and Environment and was a member of the Shadow Cabinet where he served, inter alia, as Shadow Secretary of State for Trade and Industry and Shadow Secretary of State for Environment and Transport. Tim Yeo is a director of ITI Energy Limited and is Chairman of Univent Plc and AFC Energy Plc. He was also founding Chairman of the Children�s Trust, a charity which took over Tadworth Court Children�s Hospital. An inspecteur des finances, Pierre Bilger devoted his 15-year career in the French public service (1967-1982) to dealing principally with budgetary issues. His career in industry, spanning 21 years, started in 1982 at Compagnie Generale d�Electricite (now Alcatel Lucent) of which he led the privatization as CFO and deputy Chief Executive. It continued at Alsthom from 1987, then Gec Alsthom of which he became Chief Executive Officer in March 1991 before becoming Chairman and Chief Executive of its successor Alstom, from its IPO in 1998 until 2003. Mr. Bilger currently chairs the Dutch-law foundation Stichting Preference Shares Renault-Nissan and is one of the advisors to the Management Consulting Group plc. "I am delighted that Tim Yeo, an MP and ex-minister of Her Majesty's government as well as Pierre Bilger who chaired the Franco-British group Gec Alsthom, now Alstom, have joined the Board," Eurotunnel CEO Jacques Gounon disclosed. "This demonstrates our clear intention to recreate within the Board a binational culture and it should convince British shareholders, who tendered less than 60% of their total Units, to take advantage of the reopening to tender their Units to the Offer before June 14, 2007,� Mr. Gounon added. The joint board has also resolved to convene the annual general meetings of Eurotunnel SA and Eurotunnel PLC in Coquelles (France) at 4:00 p.m. (French time) on July 27, 2007. It must be noted that, on that date, Eurotunnel SA and Eurotunnel PLC will have become subsidiaries of Groupe Eurotunnel SA (GET SA) which will therefore control them. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. FORD MOTOR: Navistar Files Lawsuit for Breach of Contract --------------------------------------------------------- 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. ISLE OF CAPRI: Has Until July 25 to Comply with Nasdaq Rules ------------------------------------------------------------ Isle of Capri Casinos Inc. has received a favorable ruling from the NASDAQ Listing Qualifications Panel relating to the company's inability to file its previous Quarterly Report on Form 10-Q by the March 9 due date. During a hearing before the Panel on April 26, 2007, the company requested an exception to the applicable NASDAQ rules, allowing the company until July 25, 2007, to cure the filing deficiency and asking NASDAQ to continue listing the company's common stock on the NASDAQ Global Select Market during the interim period. The Panel has granted the company's request. The company's failure to timely file its Form 10-Q for its third fiscal quarter ended Jan. 28, 2007, by the March 9 due date resulted from the company's restatement of its financial statements for the fiscal years ended April 25, 2004; April 24, 2005 and April 30, 2006, and the quarterly results for fiscal 2005 and 2006 included therein, and for the first two quarters of fiscal 2007. The failure to make a timely quarterly filing meant that Isle of Capri was not in compliance with the filing requirements for continued listing of its common stock on the NASDAQ Global Select Market as set forth in Marketplace Rule 4310(c)(14). The company subsequently filed its Form 10-Q for the quarter on April 18, 2007, but due to the ongoing restatement process the filing had not been reviewed by the company's independent auditors. The company expects to file an amended Quarterly Report on Form 10-Q, reviewed as required by the company's independent auditors, prior to the July 25, 2007, date set forth in the Panel's decision. Based in Biloxi, Missippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle of Capri Casinos in connection with its implementation of the new Probability-of-Default and Loss-Given-Default rating methodology for the Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of the company's debts including a LGD5 rating on its 9% Sr. Sub. Notes, suggesting debt holders will experience a 76% loss in the event of a default. OSI RESTAURANT: Stockholders Approve Amended Merger Agreement ------------------------------------------------------------- OSI Restaurant Partners Inc.�s stockholders adopted an agreement and plan of merger dated Nov. 5, 2006, among the company, Kangaroo Holdings Inc. and Kangaroo Acquisition Inc., as amended on May 21, 2007. Kangaroo Holdings Inc. is controlled by an investor group comprised of investment funds associated with Bain Capital Partners LLC and investment funds affiliated with Catterton Management Company LLC. OSI�s founders, certain holders associated with one of its founders and certain members of its management are expected to exchange shares of OSI�s common stock for shares of Kangaroo Holdings Inc. in connection with the merger. The amended merger agreement was adopted by the holders of a majority of OSI�s outstanding common stock, as required by Delaware law. In addition, the holders of a majority of the number of shares of OSI�s common stock held by holders that are not participating holders voted for the adoption of the amended merger agreement and the merger, as required by a condition to closing under the amended merger agreement. OSI expects that the transactions contemplated by the amended merger agreement will be consummated on or prior to June 19, 2007, subject to satisfaction of the conditions to closing under the amended merger agreement. Under the terms of the amended merger agreement, each outstanding share of OSI�s common stock (other than shares held in OSI�s treasury, shares owned by OSI�s subsidiaries, Kangaroo Holdings Inc. or Kangaroo Acquisition Inc. and shares held by stockholders who perfect appraisal rights in accordance with Delaware law) will be converted into the right to receive US$41.15 in cash. OSI�s founders, Messrs. Sullivan, Basham and Gannon, have agreed with Kangaroo Holdings Inc. that they will receive only US$40.00 per share in cash for their shares (other than shares they will be contributing to Kangaroo Holdings Inc. in exchange for its stock, which will be exchanged at a per share valuation of US$40.00 per share) in a sale transaction with a member of the investor group consummated immediately prior to, but expressly conditioned upon, the consummation of the merger. About Bain Capital Partners Bain Capital Partners LLC -- http://www.baincapital.com/-- is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity and leveraged debt assets with approximately US$40 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 230 companies around the world. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Tokyo, Hong Kong and Shanghai. About Catterton Catterton -- http://www.cpequity.com/-- is a private equity firm in the U.S. focused exclusively on the consumer industry. Since its founding in 1990, Catterton has leveraged its investment capital, strategic and operating skills, and network of industry contacts to establish one of the strongest investment track records in the consumer industry. About OSI Restaurant Partners OSI Restaurant Partners, Inc.�s portfolio of brands consists of Outback Steakhouse, Carrabba�s Italian Grill, Bonefish Grill, Fleming�s Prime Steakhouse & Wine Bar, Roy�s, Lee Roy Selmon�s, Blue Coral Seafood & Spirits and Cheeseburger in Paradise restaurants. It has operations in 50 states and 20 countries, including Thailand, Brazil and the United Kingdom, internationally. OSI RESTAURANT: S&P Affirms Ratings and Removes Developing Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Tampa, Florida-based OSI Restaurant Partners Inc., including its 'B+' corporate credit rating, and removed them from CreditWatch, where they were placed on May 9, 2007, with developing implications. The outlook is negative. The CreditWatch listing reflected S&P�s concern that a higher priced bid would be financed with additional debt. The removal from CreditWatch follows the company's announcement that its stockholders adopted an amended merger agreement whereby shares will be converted into US$41.15 in cash, rather than the originally expected US$40 per share. The increased purchase price will be funded with equity from the investor group, comprised of Bain Capital Partners, Catterton Partners, and company founders and management, that is purchasing OSI. S&P expect the transaction to close by June 19, 2007. "The negative outlook reflects leverage that is currently high for the 'B+' rating," said Standard & Poor's credit analyst Jackie E. Oberoi. Should OSI reduce leverage to less than 6.5x by the end of 2007 through measures that include improvement in same-store sales for OSI's core Outback Steakhouse concept and continued success with recent expense reduction measures, a stable outlook could result. OSI Restaurant Partners, Inc.�s portfolio of brands consists of Outback Steakhouse, Carrabba�s Italian Grill, Bonefish Grill, Fleming�s Prime Steakhouse & Wine Bar, Roy�s, Lee Roy Selmon�s, Blue Coral Seafood & Spirits and Cheeseburger in Paradise restaurants. It has operations in 50 states and 20 countries, including Thailand, Brazil and the United Kingdom, internationally. PORTRAIT CORP: Court Sets July 11 Plan Confirmation Hearing ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on July 11, 2007, to consider confirmation of Portrait Corporation of America Inc. at its debtor-affiliates' Amended Chapter 11 Plan of Reorganization, Bill Rochelle of Bloomberg News reports. Bloomberg relates that in line with the upcoming confirmation hearing, the Court approved the sale of the Debtors' business for US$100 million to CPI Corp., a photo studio operator in Sears stores operated by Sears Holding Corp. Treatment of Claims Under the Plan The Plan, as published in the Troubled Company Reporter on Feb. 8, 2007, provides that holders of Allowed Administrative Expense Claims will be paid in full and in cash. On the Plan's effective date, the DIP obligations will be deemed allowed and paid indefeasibly in full in accordance with the terms of the DIP Agreement and DIP Order. Upon full payment of all DIP Obligations, all liens and security interests granted to secure those obligations will be terminated. Provided, however, that the particular provisions of the DIP Agreement that are specified to survive will survive. Existing letters of credit issued pursuant to the DIP Agreement will be cancelled and replaced with new letters of credit to be issued pursuant to the Exit Facility. Holders of Allowed Priority Tax Claim will receive cash on the later of the plan effective date or the date the claim became allowed, or equal annual cash payments together with interest to be determined by the Bankruptcy Court. Holders of Class A Allowed Priority Non-Tax Claims will also be paid in full in cash. At the sole option of the Debtors, holders of Class B Allowed Other Secured Claims will: (a) receive payment in full in cash plus post-commencement date interest; (b) have a reinstated claim; (c) receive the collateral securing their claim; or (d) receive a treatment that renders the claim unimpaired pursuant to Section 1124 of the Bankruptcy Code. Holders of Class C Allowed Second Lien Notes Claims will receive, in full satisfaction of their claim, their pro rata share of 100% of Reorganized Portrait Corp of America common stock. Holders of Class D Allowed Senior Notes and Other Unsecured Claims will receive their pro rata distribution of new warrants. Holders of Class E Allowed Convenience Class Claims will receive 1% of their allowed claim as payment. Holders of Class F Allowed Goldman Note Claims, Class G Allowed Old Preferred Equity Interests, Class H Allowed Old Common Equity Interests, and Class I Allowed Old Common Subsidiary Equity Interests will not receive anything under the plan. Goldman Note Claims refer to: -- the 13.75% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. These notes were guaranteed by Portrait Corporation of America Inc., American Studios Inc., PCA National LLC, PCA National of Texas LP, PCA Photo Corporation of Canada Inc., Photo Corporation of America Inc., and PCA Finance Corp; and -- the 16.5% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. About Portrait Corp. Portrait Corporation of America Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany, and the United Kingdom. The company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' Financial Advisor and Investment Banker. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. Peter J. Solomon Company serves as financial advisor for the Committee. At June 30, 2006, the Debtor had total assets of US$153,205,000 and liabilities of US$372,124,000. REPRO-MED SYSTEMS: Myler & Company Raises Going Concern Doubt ------------------------------------------------------------- Meyler & Company LLC, in Middletown, New Jersey, expressed substantial doubt about Repro-Med Systems Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Feb. 28, 2007, and 2006. The auditing firm pointed to the company's accumulated deficit of US$3,427,011 and existing uncertain conditions the company faces relative to its ability to obtain capital and operate successfully. Total sales were essentially flat overall declining by 1.8% for the year ended Feb. 28, 2007 to US$1,727,518 from US$1,759,566 in 2006. Repro-Med Systems Inc. reported a net loss of US$254,721 on net sales of US$1,734,579 for the year ended Feb. 28, 2007, compared with a net loss of US$217,815 on net sales of US$1,745,806 for the year ended Feb. 28, 2006. The net loss for the year ended Feb. 28, 2007, includes US$174,710 in stock-based compensation, as compared to the previous year's loss which included stock-based compensation of US$88,550. Sales of the company's Freedom60 increased 56.6% to US$772,252 from US$429,349 due to increased sales for use with immune globulin and antibiotics, and a price increase, which was put into effect during the year. RES-Q-VAC(R) sales decreased domestically by 31.2% from US$550,274 to US$378,421 due almost entirely to a one-time large order for the relief effort relating to Hurricane Katrina in the previous year which did not repeat. The international market declined by 29% from US$561,794 to US$398,805 due to foreign competition. Overall RES-Q-VAC(R) sales declined 30.1% from US$1,112,068 to US$777,226. Sales of non-core product lines declined by 14.5% due to increased efforts going to the FREEDOM60(R) and RES-Q-VAC(R) product lines. Sales from OEM manufacturing (production for other manufacturers) increased by 72% and accounted for 9.90% of the company's revenue in 2007. Interest expense decreased by US$11,183 to US$61,336 in 2007 from US$77,519 in 2006 as the result of the company paying off high interest on demand bank notes and capital leases. At Feb. 28, 2007, the company's balance sheet showed US$1,138,429 in total assets and US$1,784,259 in total liabilities, resulting in a US$645,830 total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?20a7 About Repro-Med Systems Hreadquartered in Chester, New York, Repro-Med Systems Inc. (OTC BB: REPR.OB) -- http://www.rmsmedicalproducts.com/-- engages in the design and manufacture of medical devices for medical respiratory products and infusion therapy worldwide. It offers FREEDOM60 Syringe Infusion Pump for ambulatory medication infusions. In addition, Repro-Med Systems offers RES-Q-VAC, an emergency airway suction system, hand-operated suction device that removes fluids from a patient's airway by attaching the RES-Q-VAC pump to various proprietary sterile and nonsterile single-use catheters sized for adult and pediatric suctioning. Repro-Med Systems was co-founded by Andrew I. Sealfon in 1980. The company has offices in the Unite Kingdom. TOREX RETAIL: Terminates Suspended CEO Neil Mitchell ---------------------------------------------------- Torex Retail PLC terminated Neil Mitchell's employment as CEO of the company following his suspension from the role in January 2007. Mr. Mitchell also resigned as director of the company effective June 1, 2007. As reported in the TCR-Europe on April 5, 2007, the Serious Fraud Office has escalated its investigation of the troubled software group while the AIM has also suspended Torex from trading due to alleged accounting irregularities in the wake of the investigation and raids. Mr. Mitchell told newspapers that he had led a "whistleblower" group of executives which had reported Torex to authorities and alerted the company's bankers to an alleged accounting hole before the shares' suspension, the Retail Bulletin relates. In a report by the Irish Examiner, Mr. Mitchell�s departure comes two months after chairman Christopher Moore formally resigned from the board after stepping down on Jan. 31, 2007. Keith Taylor will succeed Mr. Mitchell as Torex chief executive officer. According to the Retail Bulletin, the fraud office has not made any arrests in its investigation, but has searched a number of residential and business addresses across Oxfordshire, where the company is headquartered, as well as Gloucestershire and Warwickshire. The company appointed Jefferies International Ltd. to act as adviser as it considers the possibility of selling the business altogether after various buyers expressed interest in the company. Any bid would have to consider the group�s debt, which is expected to total more than GBP200 million, Retail Bulletin relates. The Irish Examiner said that Torex secured a GBP15 million short-term funding boost in February 2007 to help keep it running and was negotiating with its bankers on a bid to secure medium and long-term financing. About Torex Retail Plc Headquartered in Banbury, Oxfordshire, in the United Kingdom, Torex Retail Plc -- http://www.torexretail.com/-- is a leading global retail systems solutions provider. The company's solution set spans all facets of the retail systems business, from leading edge electronic point of sale software; to back office software; to sophisticated performance and productivity systems; to loss prevention and basket analysis solutions. The company is currently being investigated by the Serious Fraud Office for alleged accounting irregularities and has also been suspended from trading by the AIM for the same reason. Torex said in its profits warning that delayed contracts had impacted revenues and increased borrowings by some GBP23 million more than the GBP180 million expected. TRIPOS INC: Completes Sale of R&D Biz to Commonwealth Biotech ------------------------------------------------------------- Tripos, Inc. has completed the sale-leaseback of its facility in Bude, England, to Southwest England Regional Development Authority and the sale of the capital stock of its Tripos Discovery Research Products and Services Business to Commonwealth Biotechnologies, Inc., based in Richmond, Virginia. On May 11, 2007, Tripos and CBI entered into a Share Purchase and Sale Agreement, which has been amended. At the time of signing, CBI paid Tripos US$350,000. Tripos has netted approximately US$1.1 million attributable to repayment of prior outstanding advances made by Tripos to the Discovery Research business, is due to receive an additional 100,000 pounds sterling by June 30, 2007, and will receive approximately US$800,000 in additional repayments upon the collection of outstanding customer receivables and work in process. Additional information about payment in connection with this sale will be contained in a Current Report on Form 8-K to be filed within four business days. As a result of the stock sale and sale-leaseback transactions, Tripos has been relieved of obligations to repay up to 2.84 million pounds sterling of grants to English authorities, of which 1.54 million pounds sterling has been accrued in Tripos' most recent consolidated balance sheet. The releases were part of a transaction in which TDR sold its facility for 2.6 million pounds sterling, entered into a long-term lease of the facility, and repaid at a substantial discount its repayment obligations to the English Department of Trade and Industry. These transactions were a necessary predicate to effecting the sale of this business. Commenting on the transaction, Dr. John P. McAlister, president and CEO of Tripos, said, "We are pleased to have completed this transaction. It places the TDR business and the interests of our customers, employees and other stakeholders in the hands of an owner with the commitment and resources to continue operation of this business. At the same time, it is an important step in the completion of the dissolution and liquidation of Tripos and the distribution of the remaining proceeds to our stockholders later this year. We will file articles of dissolution and commence the formal dissolution immediately." Following the sale of its Discovery Research business, the company has become a "shell company" and will request that The Nasdaq Global Market delist its common stock. Upon delisting, Tripos contemplates that it will seek to list its stock on the OTC Bulletin Board(R). If this listing is not available to the company, it will close its stock transfer books, at which time there will be no active public trading market for the company's common stock. About Tripos Inc. Based in St. Louis, Tripos Inc. (Nasdaq Global Select Market: TRPS) -- http://www.tripos.com/-- combines leading-edge technology and innovative science to deliver consistently superior chemistry-research products and services for the biotechnology, pharmaceutical and other life science industries. Tripos has sells its products in the United Kingdom, Brazil and Australia, among others. The company's Discovery Informatics business provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within its Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. As reported in the Troubled Company Reporter on March 20, 2007, shareholders of Tripos Inc. approved the company's plan of dissolution and liquidation. WARNER MUSIC: Strikes Deal with Lala to Drive Music Sales --------------------------------------------------------- Warner Music Group Corp.'s music tracks can be previewed for free through an internet start-up, Lala.com, in a move to drive music sales, Rhys Blakely writes for Times Online. According to Robert Levine of the International Herald Tribune, the vast majority of Warner Music catalog will be made available at Lala.com's site as audio streams, which can be heard online but not downloaded. Although listening to those streams will be free for consumers, Lala.com will pay Warner a royalty each time a user listens to a song, IHT relates. IHT said that Warner Music believed the deal with Lala.com has limited risk because the label will make money from streaming royalties. The company's priority is increasing sales of music. "The evidence we've seen is that a lot of people want to own music," Alex Zubillaga, Warner's executive vice president for digital strategy and business development was quoted by IHT as saying. "And their mandate is to sell music." Mr. Zubillaga told IHT that Lala.com was giving Warner Music a good deal of flexibility in determining how to price and bundle music. Lala.com is a site where music fans can trade used CDs for free. It aimed to make money by selling music that will send to iPods without using Apple's iTunes software. 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). ********* 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 * * *