/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070613.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 13, 2007, Vol. 8, No. 116 Headlines A U S T R I A CRISTOLOVEANU KEG: Claims Registration Period Ends July 4 CURASAN KURHOTEL: Claims Registration Period Ends July 2 DIPL.ING. HELMUTH: Vienna Court Orders Business Shutdown ENT LLC: Claims Registration Period Ends July 3 FESTIVAL KREUZFAHRTEN: Court Approves Additional Distribution INNGAST GASTRONOMIE: Claims Registration Period Ends July 6 LIFE MEDICAL: Claims Registration Period Ends July 24 NIGHT-IN LLC: Claims Registration Period Ends July 13 B E L G I U M GENERAL MOTORS: Joins Chrysler & Ford in Healthcare Fund F R A N C E EUTELSAT COMMUNICATIONS: Confirms Offer for Satelites Mexicanos RHODIA SA: Asks AMF to Probe Rumors Over Share Price Movements SPECIALIZED TECHNOLOGY: Moody's Junks Proposed US$75 Mln Loan G E R M A N Y ALLTRANS GMBH: Claims Registration Period Ends July 23 ATC GMBH: Claims Registration Period Ends July 5 AV ORGANISATION: Claims Registration Period Ends July 20 BWE GMBH: Claims Registration Period Ends July 10 CHIQUITA BRANDS: Raises CEO Salary to US$900,000 Annually DAIMLERCHRYSLER AG: Chrysler Workers Seeking Buyouts Exceed Plan DAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say EDDIE BAUER: ISS Urges Shareholders to OK Directors' Election EMWS-BAU GMBH: Claims Registration Period Ends June 28 ENJOY ON WHEEL: Claims Registration Period Ends July 23 HILITE INT'L: S&P Rates Proposed US$190 Million Loans at Low-B HS BAUEN: Claims Registration Period Ends Aug. 15 PHOTRONICS INC: Earns US$14.1 Mln for the Quarter Ended April 29 PHOTRONICS INC: Moody's Cuts US$150 Million Debt Rating to B3 PORTRAIT CORP: CPI Completes Acquisition of All Operating Assets RUEDIGER KOENEN: Creditors Must Register Claims by June 15 SAINBACH GMBH: Creditors Meeting Slated for July 18 SICHERHEITS BEWACHUNGSUNTERNEHMEN: Creditors' Claims Due June 21 SOCCER - ARENA: Creditors Must Register Claims by July 10 TEXDORF ASSENHANDELS: Creditors Must Register Claims by July 9 K A Z A K H S T A N ALEM STAR: Proof of Claim Deadline Slated for July 17 ASMM LLP: Creditors Must File Claims July 17 BESKON LLP: Claims Filing Period Ends July 17 ENBEK LLP: Claims Registration Ends July 17 PMS-77 LLP: Creditors' Claims Due July 17 SAYSAN-FISH RYBA: Proof of Claim Deadline Slated for July 13 SHEBERHANA OJSC: Creditors Must File Claims July 13 STANDARD-2 LLP: Claims Filing Period Ends July 17 UYUT LLP: Claims Registration Ends July 17 K Y R G Y Z S T A N ELAN EXPRESS: Proof of Claim Deadline Slated for July 11 EXPRESS-SAPAR LLC: Creditors Must File Claims by July 11 L U X E M B O U R G TEKSID ALUMINUM: Gets Consent Solicitation to Amend Indenture N E T H E R L A N D S KONINKLIJKE AHOLD: Earns EUR241 Million in First Quarter 2007 P O L A N D AFFILIATED COMPUTER: Suspends Exclusivity Pact with Cerberus ELEKTRIM S.A.: Vivendi Files Suit for Fraud & Breach of Contract OPEN TRAVEL: Bankruptcy Premeditated, Prosecutors Say R U S S I A AVNYUGSKIY WOOD-PROM-KHOZ: Creditors Must File Claims by July 19 BRICKWORKS STANDARD: Creditors Must File Claims by June 19 CB EURO-PROM-INVEST: Creditors Must File Claims by July 19 INPRODUCT CJSC: Creditors Must File Claims by July 19 KRUTOYARSKOYE CJSC: Bankruptcy Hearing Slated for Sept. 5 LEN-GAS-ENERGO: Creditors Must File Claims by July 19 MORDOV-SEL-KHOZ-KHIMIYA: Creditors Must File Claims by July 19 ORENBURGSKAYA TRADING: Creditors Must File Claims by June 19 PMK-14 CJSC: Saratov Bankruptcy Hearing Slated for Oct. 3 RAND CJSC: Creditors Must File Claims by June 19 SHABALINSKIY FLAX: Creditors Must File Claims by June 19 SHENGA-WOOD LLC: Creditors Must File Claims by June 19 SOLID PROPELLANT: Court Starts Bankruptcy Supervision Procedure VIMPELCOM: Court Upholds Acquisition of Ukrainian Radio Systems ZNAMENSKAYA OJSC: Creditors Must File Claims by July 19 S P A I N SURGILIGHT INC: March 31 Balance Sheet Upside-Down by US$625,891 S W I T Z E R L A N D BRENTSCH IMMOBILIEN: Creditors' Liquidation Claims Due June 25 CHEZ JEANNETTE: Creditors' Liquidation Claims Due June 25 CNS LLC: Creditors' Liquidation Claims Due June 22 FUNK-TAXI A. CATHREIN: Creditors' Liquidation Claims Due June 25 HEBETECH LLC: Creditors' Liquidation Claims Due June 22 HERCULES INC: Moody's Keeps Corporate Family Rating at Ba2 INDIKA LLC: Creditors' Liquidation Claims Due June 25 JUWACO JSC: Creditors' Liquidation Claims Due June 22 MAX STADLER: Creditors' Liquidation Claims Due June 22 SCHMID & PARTNER: Creditors' Liquidation Claims Due June 22 SU KOSMETIK: Creditors' Liquidation Claims Due June 25 T U R K E Y PETROKIMYA HOLDING: Administration Extends Bidding Deadline U K R A I N E BIOSENT-TECH LLC: Claims Filing Deadline Set June 16 KOBO LLC: Creditors Must File Claims by June 16 KROTOM-SV LLC: Claims Filing Deadline Set June 16 LADKOM-VV LLC: Claims Filing Deadline Set June 16 SHPOLA MOVABLE 2: Claims Filing Deadline Set June 16 TAIFUN LLC: Claims Filing Deadline Set June 16 TITUS LLC: Claims Filing Deadline Set June 16 TORGOVITSA: Claims Filing Deadline Set June 16 VOLOSHKA: Creditors Must File Claims by June 16 U N I T E D K I N G D O M BOMBARDIER REC: Moody's Rates CDN250 Mil. Sr. Sec. Loan at Ba2 CENTRAL GARDEN: Moody's May Cut Low-B Ratings After Review DONCASTER LAKERS: May Enter Into Liquidation Procedure EMI MUSIC: Warner Music Confirms Possible Takeover Bid FORD MOTOR: Joins GM & Chrysler in Healthcare Fund, Sources Say KWIK SAVE: Reopens Twenty Stores and Reinstates Staff WARNER MUSIC: Confirms Possible Takeover Bid for EMI ********* ============= A U S T R I A ============= CRISTOLOVEANU KEG: Claims Registration Period Ends July 4 --------------------------------------------------------- Creditors owed money by Cristoloveanu KEG NIRO-Reinigungsservice (FN 240029i) have until July 4 to file written proofs of claim to court-appointed estate administrator Susi Pariasek at: Dr. Susi Pariasek c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on July 18 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 15 (Bankr. Case No. 2 S 68/07y). Beate Holper represents Dr. Pariasek in the bankruptcy proceedings. CURASAN KURHOTEL: Claims Registration Period Ends July 2 -------------------------------------------------------- Creditors owed money by LLC Curasan Kurhotel Jodschwefelbad (FN 280839z) have until July 2 to file written proofs of claim to court-appointed estate administrator Kurt Waldhoer at: Dr. Kurt Waldhoer Technoparkstrasse 3 4820 Bad Ischl Austria Tel: 06132/9003 3401 Fax: 06132/9003 3430 E-mail: ra-waldhoer@nextra.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on July 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Bad Goisern, Austria, the Debtor declared bankruptcy on May 11 (Bankr. Case No. 20 S 56/07x). DIPL.ING. HELMUTH: Vienna Court Orders Business Shutdown -------------------------------------------------------- The Trade Court of Vienna entered May 11 an order shutting down the business of LLC Dipl.Ing. Helmuth Gande (FN 65682t). Court-appointed estate administrator Norbert Abel 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. Norbert Abel c/o Mag. Johanna Abel-Winkler Franz Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 7 (Bankr. Case No 4 S 53/07g). Johanna Abel-Winkler represents Mag. Abel in the bankruptcy proceedings. ENT LLC: Claims Registration Period Ends July 3 ----------------------------------------------- Creditors owed money by LLC ENT (FN 122036s) have until July 3 to file written proofs of claim to court-appointed estate administrator Rene Lindner at: Mag. Rene Lindner Fadingerstr. 9 4020 Linz Austria Tel: 0732/784080-34 Fax: 0732/784080-5 E-mail: konkurs@hengstschlaeger-lindner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on July 17 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Pasching, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 38 S 32/07w). FESTIVAL KREUZFAHRTEN: Court Approves Additional Distribution ------------------------------------------------------------- The Trade Court of Vienna approved on May 11, the distribution of additional EUR1,854.75 to creditors of LLC Festival Kreuzfahrten (FN 138438k). The court-appointed estate administrator Stefan Langer will conduct the additional distribution. The estate administrator can be reached at: Dr. Stefan Langer Oelzeltgasse 4 1030 Vienna Austria Headquartered in Vienna, Austria, the Debtor's Case No. is 4 S 63/04y. INNGAST GASTRONOMIE: Claims Registration Period Ends July 6 ----------------------------------------------------------- Creditors owed money by LLC INNGAST Gastronomie & Co KG (FN 217385i) have until July 6 to file written proofs of claim to court-appointed estate administrator Gernot Amoser at: Dr. Gernot Amoser Colingasse 3 6020 Innsbruck Austria Tel: 0512/58 03 21 Fax: 0512/58032222 E-mail: amoser@law-danler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 23 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Meeting Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 19 S 58/07p). LIFE MEDICAL: Claims Registration Period Ends July 24 ----------------------------------------------------- Creditors owed money by LLC LIFE Medical (FN 122834p) have until July 24 to file written proofs of claim to court-appointed estate administrator Guenther Grassner at: Dr. Guenther Grassner c/o Dr. Norbert Mooseder Suedtirolerstrasse 4-6 4020 Linz Austria Tel: 0732/77 08 15 Fax: 0732/77 08 16 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Aug. 7 for the examination of claims. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in Pfarrkirchen bei Bad Hall, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 14 S 18/07f). Norbert Mooseder represents Dr. Grassner in the bankruptcy proceedings. NIGHT-IN LLC: Claims Registration Period Ends July 13 ----------------------------------------------------- Creditors owed money by LLC NIGHT-IN (FN 236460k) have until July 13 to file written proofs of claim to court-appointed estate administrator Stephan Kasseroler at: Dr. Stephan Kasseroler Lieberstrasse 3 6020 Innsbruck Austria Tel: 0512/57 13 31 Fax: 0512/57133199 E-mail: office@kasseroler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on July 30 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Meeting Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on May 14 (Bankr. Case No. 19 S 60/07g). ============= B E L G I U M ============= GENERAL MOTORS: Joins Chrysler & Ford in Healthcare Fund -------------------------------------------------------- DaimlerChrysler AG's Chrysler Group, General Motors Corp. and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined US$114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of US$1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time US$1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four-year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21 percent to US$64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about US$19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market-share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non-union employees, retirees and dependents. 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. 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. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. As of March 31, 2007, GM's balance sheet showed a stockholders' deficit of US$4,347,000,000, compared to a positive equity of US$15,779,000,000 at March 31, 2006. * * * In May 2007, Fitch Ratings has downgraded General Motors Corporation's senior unsecured debt rating to 'B-/RR5' from 'B/RR4'. GM's Issuer Default Rating remains at 'B' and is still on Rating Watch Negative (along with the other outstanding ratings) by Fitch following the company's announcement that it will be raising US$4.1 billion in secured financing and US$1.1 billion in senior unsecured convertible securities. The US$4.1 billion 364-day facility, to be secured by GM's common equity holdings in GMAC, will be assigned a rating of 'BB/RR1', while the senior unsecured convertible securities will be rated 'B-/RR5'. =========== F R A N C E =========== EUTELSAT COMMUNICATIONS: Confirms Offer for Satelites Mexicanos --------------------------------------------------------------- Eutelsat Communications confirmed submitting an offer together with two Mexican partners Miguel Aleman Group and Clemente Serna Group for 100 percent ownership of the Mexican satellite operator Satelites Mexicanos. The proposal has been submitted within the framework of the sale process of Satmex initiated by the company's shareholders and managed by Morgan Stanley. About Eutelsat Headquartered in Paris, France, Eutelsat Communications -- http://www.eutelsat.com/-- is the holding company of Eutelsat S.A. The Group is a leading satellite operator with capacity commercialized on 23 satellites providing coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas. The Group is one of the world's three leading satellite operators in terms of revenues. Its satellites are used for broadcasting nearly 1,800 TV and 900 radio stations to more than 120 million cable and satellite homes. The Group also provides TV contribution services, corporate networks, mobile positioning and communications, Internet backbone connectivity and broadband access for terrestrial, maritime and inflight applications. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors, Moody's Investors Service confirmed its Ba2 Corporate Family Rating for Eutelsat Communications S.A. Moody's also assigned a Ba3 probability of default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- Senior Unsecured Bank Credit Facility Ba3 LGD4 55% RHODIA SA: Asks AMF to Probe Rumors Over Share Price Movements -------------------------------------------------------------- Rhodia S.A. has decided to request an investigation by the Autorite des Marches Financiers in view of the unfounded rumors concerning the company, which resulted in significant trading volumes and price movements on its shares. Rhodia confirmed that it has no formation in its possession that could justify the rumors behind the movement in its share price on Wednesday morning, June 7, 2007. According to Bloomberg News, company shares fell almost 15 percent. �We heard rumors of a profit warning, then of fraud," Marie-Caroline Messager, a trader at Fimat in Paris, was quoted by Bloomberg as saying. "That could have weighed on the shares, but there's not a strong probability that the speculation was justified.� Rhodia reiterated that it is confident in delivering its short and medium term objectives. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. Rhodia employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As reported in the TCR-Europe on April 26, 2007, Fitch Ratings affirmed Rhodia S.A.'s Issuer Default Rating at BB- and revised the Outlook to Positive from Stable. Fitch has assigned Rhodia SA's proposed issue of up to EUR595.125 million bonds convertible and/or exchangeable for new and/or existing shares an expected 'BB-' rating. As reported in the TCR-Europe on April 23, 2007, Moody's Investors Service upgraded Rhodia S.A. corporate family rating to Ba3 and assigned Probability-of-Default rating for the group at Ba3; Moody's also upgraded senior secured notes at Rhodia S.A. to B1 and assigned LGD assessment at LGD4 (69%). The proposed convertible notes are rated (P)B1, LGD4 (69%). These ratings are affected: -- Corporate Family Ratings upgraded to Ba3; -- Probability-of-Default assigned at Ba3; -- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4 (69%); and -- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4 (69%). Standard & Poor's Ratings Services raised its long-term corporate credit rating on Rhodia to BB- from B+, and its long- term debt rating on the group to B from B-. At the same time, Standard & Poor's assigned its B senior unsecured debt rating to Rhodia's proposed new bond, which will be used for refinancing purposes. SPECIALIZED TECHNOLOGY: Moody's Junks Proposed US$75 Mln Loan ------------------------------------------------------------- Moody's Investors Service downgraded the ratings of the proposed first lien senior secured credit facilities of Specialized Technology Resources, Inc. to B1 from Ba3 following the upsizing of the first lien term loan by US$50 million to US$185 million. The upsizing was accompanied by a reduction in the proposed second lien term loan by US$50 million to US$75 million. The Caa1 ratings on the proposed second lien term loan were affirmed. Concurrently, Moody's affirmed the B2 Corporate Family Rating and B2 Probability of Default Ratings of the company. The outlook for the ratings remains stable. The ratings are constrained by a high level of overall indebtedness at close with adjusted pro forma debt to EBITDA for the twelve months ended March 31, 2007 of about 6.5 times, the company's small size both in absolute terms and relative to competitors, and Moody's expectations of negative free cash flow generation in fiscal 2007. The ratings also reflect some degree of technological risk with respect to STR Solar. Although the leverage reflects the relatively high valuation of the company in relation to current cash flow generation, the ratings recognize the significant equity contribution and associated sponsor commitment. The B2 Corporate Family Rating acknowledges STR's geographically diverse asset base (including laboratories, inspection and audit offices and manufacturing plants), the continuing outsourcing of manufacturing from consumer to producer countries and related safety requirements and regulations which support growth in the quality assurance and testing business, and the current environment with respect to solar panel installation subsidies in several countries, along with the diversification benefits of operating in two unrelated business segments. Moody's also notes that STR's focus on areas such as social responsibility and renewable energy is likely to continue to benefit from favorable social and regulatory trends. Moody's took these rating actions: -- Downgraded the proposed US$20 million first lien revolver due 2012 to B1 (LGD 3, 35%) from Ba3 (LGD2, 24%); -- Downgraded the proposed US$185 million first lien term loan due 2014 to B1 (LGD 3, 35%) from Ba3 (LGD2, 24%); -- Affirmed the proposed Caa1 (LGD5, 88%) rated US$75 million second lien term loan due 2014; -- Affirmed the B2 Probability of Default Rating; -- Affirmed the B2 Corporate Family Rating; -- The outlook for the ratings is stable. Specialized Technology Resources -- http://www.strlab.com/-- founded in 1944, is a recognized leader in testing and quality assurance services for the consumer products industry and the leading manufacturer of solar module encapsulants globally. STR Quality Assurance has established deep and longstanding relationships with the leading global retailers and manufacturers in the consumer and retail markets. STR Solar is the leading, long-term supplier of encapsulants to many of the major solar module manufacturers in the industry. STR has sophisticated laboratories and offices in over 30 countries across five continents. The Company is headquartered in Enfield, CT and has over 1,500 employees worldwide. The company has laboratories located in Mexico, Hong Kong, China, Taiwan, Singapore, Indonesia, Korea, India, Sri Lanka, Switzerland, United Kingdom, France, and Turkey, among others. STR had revenues of approximately US$135 million for the 12 months ended March 31, 2007. ============= G E R M A N Y ============= ALLTRANS GMBH: Claims Registration Period Ends July 23 ------------------------------------------------------ Creditors of Alltrans GmbH Internationale Spedition have until July 23 to register their claims with court-appointed insolvency manager Gordon Rapp. 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gordon Rapp Gaisbergstr. 6 69115 Heidelberg Germany Tel: 06221/97370 The District Court of Mannheim opened bankruptcy proceedings against Alltrans GmbH Internationale Spedition on May 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Alltrans GmbH Internationale Spedition Attn: Thomas Sommer, Manager Bochumer Str. 3-15 68219 Mannheim Germany ATC GMBH: Claims Registration Period Ends July 5 ------------------------------------------------ Creditors of ATC GmbH have until July 5 to register their claims with court-appointed insolvency manager Axel Kulas. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tuebingen Hall 208 Second Floor Branch Office Schulberg 14 72074 Tuebingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Axel Kulas Gansheidestr. 43 70184 Stuttgart Germany Tel: 0711/70707580 The District Court of Tuebingen opened bankruptcy proceedings against ATC GmbH on May 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ATC GmbH Junghansring 4 72108 Rottenburg Germany Attn: Nico Klett, Manager Schickhardtstr. 54 72770 Reutlingen Germany AV ORGANISATION: Claims Registration Period Ends July 20 -------------------------------------------------------- Creditors of AV Organisation GmbH have until July 20 to register their claims with court-appointed insolvency manager Werner Mueller. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Aug. 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuerzburg Hall 14/II Justiznebenstelle Tiepolostr. 6 Wuerzburg 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: Werner Mueller Mergentheimer Str. 26 97082 Wuerzburg Germany Tel: 0931/880800 The District Court of Wuerzburg opened bankruptcy proceedings against AV Organisation GmbH on May 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AV Organisation GmbH Leitengraben 3 97084 Wuerzburg Germany Attn: Herrn Joerg Sannemann, Manager Neubaustrasse 2 97070 Wuerzburg Germany BWE GMBH: Claims Registration Period Ends July 10 ------------------------------------------------- Creditors of BWE GmbH have until July 10 to register their claims with court-appointed insolvency manager Lucas Floether. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Aug. 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mannheim Hall 232 Second Floor Schloss 68149 Mannheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Lucas Floether Handelweg 1 68794 Oberhausen-Rheinhausen Germany Tel: 07254/959599-0 The District Court of Mannheim opened bankruptcy proceedings against BWE GmbH on May 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BWE GmbH Attn: Christian Stylianou, Manager Kraichbachstr. 8 68766 Hockenheim Germany CHIQUITA BRANDS: Raises CEO Salary to US$900,000 Annually --------------------------------------------------------- Cliff Peale at Enquirer.com reports that Chairperson and Chief Executive Officer Fernando Aguirre's salary will increase to US$900,000 per year, despite the US$96-million loss the company incurred in 2006. Enquirer.com's Mr. Peale notes that Chiquita Brands' stock price also dropped 25% last year. The firm didn�t pay any cash bonuses. However, Mr. Aguirre�s salary will increase and he will receive an award of US$1.2 million in restricted stock over the next three years, the report says. According to Enquirer.com's Mr. Peale, Chiquita Brands directors are positive that Mr. Aguirre is helping transform the company from a seller of commodity bananas to a more diversified and more profitable seller of fruit-based products. Chiquita Brands director Steven Stanbrook, who heads the compensation committee, told Enquirer.com's Mr. Peale that the transformation will take time. He commented, "The most important long-term objective that Mr. Aguirre has to achieve is related to a far-reaching transformational initiative we are pursuing." Chiquita Brands "meticulously benchmarks against comparable companies," Enquirer.com's Mr. Peale notes, citing Mr. Stanbrook. The director defended Mr. Aguirre�s raise, saying that it is fair, especially since the company has been dealing with regulatory and legal issues that originated before Mr. Aguirre. 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%). DAIMLERCHRYSLER AG: Chrysler Workers Seeking Buyouts Exceed Plan ---------------------------------------------------------------- About 6,400 U.S. hourly workers have shown interest in taking the buyout or early retirement package being offered by DaimlerChrysler AG's Chrysler Group, exceeding the company's target of 4,700 hourly U.S. workers, Dow Jones Newswires reports. According to the report, Chrysler spokeswoman Michele Tinson wouldn't confirm specific numbers but said, "corporate-wide, hourly retirement and separation program acceptances have exceeded our original projections." The layoffs are part of Chrysler's restructuring of its North American operations after posting a US$1.5 billion loss last year. Cerberus Capital Management LP is buying the U.S. unit, which has struggled in recent years to stem a loss of market share in the U.S. to Asian rivals with leaner cost structures, Dow Jones relates. General Motors Corp. and Ford Motor Company have seen tens of thousands of workers accept buyouts and early retirements as those companies cut capacity in the face of lower market share, Dow Jones reveals. The U.S. auto makers have used buyouts since laid-off workers go into a program known as the Jobs Bank, where they receive much of their pay and benefits despite not working. The TCR-Europe reported on March 8, 2007, that Chrysler will offer as much as US$100,000 to some of its 49,600 hourly workers at 11 U.S. plants to leave the company as part of its recovery plan, hoping to eliminate 11,000 hourly positions and 2,000 salaried jobs in an effort to return to profitability following its US$1.475 billion loss in 2006. Chrysler and the United Auto Workers agreed to two special programs that will provide retirement and separation incentives for the company's bargaining-unit employees in the United States as part of the Chrysler Group's Recovery and Transformation Plan. The negotiated programs include an Incentive Program for Retirement with US$70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program, which provides a lump sum payment of US$100,000 for employees with at least one year of credited service. 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. DAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group, General Motors Corp. and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined US$114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of US$1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time US$1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four-year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21 percent to US$64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about US$19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market-share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non-union employees, retirees and dependents. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. 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. 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. EDDIE BAUER: ISS Urges Shareholders to OK Directors' Election ------------------------------------------------------------- Institutional Shareholders Services has changed its previous recommendation and is now advising its clients to approve the election of all nine members of Eddie Bauer Holdings, Inc.'s Board of Directors for one year terms and to ratify the appointment of the company's independent registered accounting firm. ISS continues to recommend approval of the 2007 amendment and restatement of the 2005 Eddie Bauer Holdings, Inc. Stock Incentive Plan. On June 6, 2007, the company sent a letter to ISS clarifying the nature of the tax fees paid by the company to its independent registered public accounting firm in 2006. In its recommendation dated June 7, 2007, ISS concluded, "Previously, ISS did not support the ratification of the company's auditors because other fees, given the disclosure available, represented more than 50% of total fees. Given the new disclosure, we are changing our vote recommendation to support the ratification of BDO Seidman as the company's auditors for the current fiscal year. For similar reasons, ISS is changing its WITHHOLD vote recommendation of the Audit Committee members, and recommend a vote FOR independent outsiders John C. Brouillard, Laurie M. Shahon, and Kenneth M. Reiss." About Eddie Bauer Based in Redmond, Washington, Eddie Bauer Holdings Inc. (NASDAQ: EBHI) -- http://www.eddiebauer.com/-- is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Established in 1920 in Seattle, Eddie Bauer products are available at about 380 stores throughout the U.S. and Canada, through catalog sales and online at http://www.eddiebaueroutlet.com/. The company also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories. Eddie Bauer employs 10,000 part-time and full-time associates in the U.S. and Canada. * * * As reported in the Troubled Company Reporter on March 26, 2007, Standard & Poor's Rating Services lowered the ratings on Eddie Bauer Holdings Inc., to 'B-' from 'B'. At the same time, Standard & Poor's removed the rating from CreditWatch with negative implications, where it was placed on Nov. 13, 2006. The outlook is negative. EMWS-BAU GMBH: Claims Registration Period Ends June 28 ------------------------------------------------------ Creditors of eMWs-Bau GmbH have until June 28 to register their claims with court-appointed insolvency manager Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Nerlich Louise-Dumont-Str. 25 40211 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against eMWs-Bau GmbH on May 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: eMWs-Bau GmbH Johannesstrasse 44 41542 Dormagen Germany Attn: Mieczyslaw Wierzbicki, Manager Gereonstr. 4 41569 Rommerskirchen Germany ENJOY ON WHEEL: Claims Registration Period Ends July 23 ------------------------------------------------------- Creditors of Enjoy on Wheel gemeinnuetzige GmbH i.L. have until July 23 to register their claims with court-appointed insolvency manager Erich Hoelzemann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 119 B Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Erich Hoelzemann Goethestr. 2 59065 Hamm Germany Tel: 02381/924200 Fax: +4923819242020 The District Court of Muenster opened bankruptcy proceedings against Enjoy on Wheel gemeinnuetzige GmbH i.L. on May 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Enjoy on Wheel gemeinnuetzige GmbH i.L. Gottfried-Polysius-Strasse 10 59269 Beckum Germany HILITE INT'L: S&P Rates Proposed US$190 Million Loans at Low-B -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Cleveland-based auto supplier Hilite International Inc. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating (two notches above the corporate credit rating) and '1' recovery rating to Hilite's proposed US$130 million of first-lien senior secured credit facilities, consisting of a: * US$25 million revolving credit facility and * US$105 million term loan. The bank loan rating and recovery rating indicate the likelihood of full recovery in a default or bankruptcy, based on an assessment of the company's enterprise value. Standard & Poor's also assigned its 'B-' bank loan rating (one notch lower than the corporate credit rating) and '5' recovery rating to Hilite's proposed US$60 million second-lien senior secured term loan. The bank loan rating and recovery rating indicate the likelihood of modest recovery (10%-30%) in a default or bankruptcy. The outlook is negative. The new credit facilities represent one part of Hilite's proposed capital restructuring. Proceeds from the credit facilities will be used to refinance US$145.2 million of existing debt and repurchase US$39.5 million of third-party PIK preferred stock. Pro forma debt outstanding at close of the transaction, expected for June 30, will total about US$220 million. Hilite has international locations in France and Germany. HS BAUEN: Claims Registration Period Ends Aug. 15 ------------------------------------------------- Creditors of HS Bauen und Wohnen GmbH i.L. have until Aug. 15 to register their claims with court-appointed insolvency manager Arno Wolf. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Sept. 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Main) Hall 2 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Arno Wolf Minnholzweg 2b 61476 Kronberg Germany Tel: 06173/78340 Fax: 06173/783422 E-mail: wolf@ra-amend.de Web site: http://www.ra-amend.de/ The District Court of Frankfurt (Main) opened bankruptcy proceedings against HS Bauen und Wohnen GmbH i.L. on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HS Bauen und Wohnen GmbH i.L. Adalbertstrasse 64 60486 Frankfurt (Main) Germany PHOTRONICS INC: Earns US$14.1 Mln for the Quarter Ended April 29 ---------------------------------------------------------------- Photronics Inc. reported fiscal 2007 second quarter results for the period ended April 29, 2007, its net income amounted to $14.1 million, compared to net income of US$5.3 million for the second quarter of fiscal 2006. Net income for the second quarter of 2007 includes a net benefit of US$7.9 million relating to the resolution and settlement of United States and foreign tax liabilities associated with uncertain tax positions in prior years. Net income for the second quarter of 2006 included a charge of US$11.4 million after tax in connection with the company�s previously disclosed restructuring of its operations in North America. Sales for the quarter were US$109.6 million, compared to $119.5 million for the second quarter of fiscal year 2006. Semiconductor photomasks accounted for US$88.3 million, or 81% of revenues during the second quarter of fiscal 2007, while flat panel display photomasks accounted for US$21.3 million, or 19% of revenues. During the second quarter of fiscal 2006, semiconductor photomasks accounted for 76% of revenues and FPD photomasks accounted for 24% of revenues. Half-Year Results Sales for the first six months of 2007 were US$215.6 million, compared to US$231.4 million for the first half of fiscal 2006. Semiconductor photomasks accounted for US$173.9 million, or 81% of revenues during the first six months of fiscal 2007, while FPD photomasks accounted for US$41.7 million, or 19% of revenues. Year-over-year, semiconductor photomask revenues decreased 2%, while FPD photomask revenues decreased 22.7%. Net income for the first six months of fiscal 2007 amounted to $21.9 million, compared to the prior year�s first six months net income of US$15 million. Balance Sheet Data The company recorded US$977.3 million in total assets, $286.7 million in total liabilities, US$47.5 million in minority interest, and US$643.2 million as of April 29, 2007. The company's working capital increased US$15.6 million to $143.2 million at April 29, 2007, as compared to Oct. 29, 2006, primarily as a result of increased cash generated from operations, and a decrease in the current portion of long-term borrowings. At April 29, 2007, US$125 million of the company's outstanding $150 million, 2.25% convertible subordinated notes due in April of 2008, was reported as long-term in connection with US$125 million of credit available to the company under a five-year, revolving credit facility agreement entered into on June 6, 2007, with a group of financial institutions. Cash, cash equivalents and short-term investments decreased to $153.7 million at April 29, 2007, as compared to US$199.3 million at Oct. 29, 2006, primarily due to the redemption of US$87.1 million of the remaining outstanding balance of the company's 4.75% convertible subordinated notes. A full-text copy of the company's second quarter results is available for free at http://ResearchArchives.com/t/s?20c6 Michael J. Luttati, chief executive officer commented, �While performance for the quarter was at the lower end of our guidance range as a result of industry wide semiconductor and flat panel market conditions, we are pleased with the progress we made during the quarter. Our plans to further penetrate the semiconductor industry�s sub-90 nanometer market are proving successful, as revenues increased sequentially with an especially strong performance in Asia. In flat panel displays, the outlook is improving after taking nearly a year to work through fluctuating capacity and end market dynamics. Our technology focus was recently rewarded with Photronics having shipped our first Gen 8 production mask set prior to the quarter�s close.� Mr. Luttati concluded, "As we move into the second half of fiscal 2007, we will continue executing against our strategy to increase share in the advanced semiconductor mask and flat panel markets. Near-term market volatility aside, we are optimistic that the company is significantly improving its competitive position." About Photronics, Inc. Photronics, Inc. -- http://www.photronics.com/-- is a worldwide manufacturer of photomasks, which are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Korea, Germany, and North America. * * * The company carries Standard & Poor's BB- Long-term Foreign and Local Issuer Credit Ratings. PHOTRONICS INC: Moody's Cuts US$150 Million Debt Rating to B3 ------------------------------------------------------------- Moody's Investors Service affirmed Photronics, Inc.'s B1 corporate family rating and stable outlook following the closing of its new five-year US$125 million senior secured bank credit facility. Simultaneously, Moody's lowered the rating on the existing US$150 million convertible subordinated note to B3 from B2. The one-notch downgrade of the subordinated note reflects a higher loss-given-default point estimate (86% from 73%) under Moody's LGD framework and the effect of new secured debt entering the capital structure. The holding company entity is the borrower under the new credit facility, which will be guaranteed on an unsecured basis by Photronics' domestic operating subsidiaries. Moody's believes the collateral value of the new debt has minimal value, if any, in a distressed scenario (i.e., 100% deficiency claim) given that the security package consists of 100% of the stock of certain material domestic subsidiaries and 65% of the stock of foreign subsidiaries. The stable outlook reflects the company's enhanced earnings quality and reduced financial leverage tempered by limited earnings visibility and a concentrated customer base (five largest customers represented 46% of fiscal 2006 revenues). It also considers the increase in working capital consumption over the past year without a commensurate increase in revenue, and significantly higher capital expenditures targeted in fiscal 2007. Hence, we anticipate free cash flow to be negative in fiscal 2007 as the company continues to spend to add high-end capacity at a faster pace than revenue growth, becoming positive again in fiscal 2008. These ratings were downgraded: -- US$150 million 2.25% Convertible Subordinated Note due 2008 to B3 (LGD-5, 86%) from B2 (LGD-5, 73%). These ratings were affirmed: -- Corporate Family Rating at B1; -- Probability of Default Rating at B1. Photronics, Inc. -- http://www.photronics.com/-- is a worldwide manufacturer of photomasks, which are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. In Europe, the company maintains operations in Dresden, Germany and Manchester, U.K. Revenues for the 12 months ended April 29, 2007 were US$439 million. PORTRAIT CORP: CPI Completes Acquisition of All Operating Assets ---------------------------------------------------------------- CPI Corp. disclosed the completion of its planned acquisition of substantially all of the operating assets of Portrait Corporation of America, Inc. and its foreign and domestic affiliates. With expiration of the requisite pre-merger notice period under the Hart-Scott-Rodino Antitrust Improvement Act on May 23, 2007 and final approval of the transaction by the United States Bankruptcy Court for the Southern District of New York on June 4, 2007, the parties were able to consummate the transaction well ahead of the June 30th deadline established under their definitive agreement announced on May 2, 2007. CPI paid a final purchase price of US$82.5 million in cash and assumed certain liabilities by refinancing its credit facilities with LaSalle Bank, N.A. The refinancing also closed on June 8, 2007. As a result of the acquisition, CPI now operates 2,055 portrait studios in Wal-Mart stores and supercenters in the U.S., Puerto Rico, Canada, Mexico and the United Kingdom, bringing the Company's total studio count to 3,095. CPI is the long-standing exclusive operator of portrait studios in Sears stores in the U.S. and Canada. In their most recently completed fiscal years, the CPI and PCA studios generated combined sales of US$586 million and served approximately 8.5 million customers. David Meyer, Chairman of the Board of Directors of CPI, commented, "We are pleased to welcome PCA's many outstanding associates to the CPI family. The combination of the operations of PCA with CPI creates the clear leader in the portrait studio market, and we look forward to capitalizing quickly on the complementary strengths of our two organizations. We have already begun making preparations to convert the PCA studios to digital technology and expect to commence conversions this summer." Continuing, Mr. Meyer said, "We are excited about the enormous potential of this combination and are confident that it will benefit our customers, employees and retail partners as well as our shareholders." About CPI CPI Corp. (NYSE: CPY) is the leading portrait studio operator in North America offering photography services in 3,095 locations in the United States, Puerto Rico, Canada and Mexico as well as the United Kingdom, principally in Sears and Wal-Mart stores. 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. The Court has set July 11, 2007, to consider confirmation of the Debtor's Amended Chapter 11 Plan of Reorganization. RUEDIGER KOENEN: Creditors Must Register Claims by June 15 ---------------------------------------------------------- Creditors of Ruediger Koenen Verwaltungsgesellschaft mbH have until June 15 to register their claims with court-appointed insolvency manager Henning Samisch. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on July 10, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tostedt Meeting Hall I Linden 23 21255 Tostedt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Samisch Muehlenkamp 59 22303 Hamburg Germany Tel: 040 65039-0 Fax: 040 65039-199 The District Court of Tostedt opened bankruptcy proceedings against Ruediger Koenen Verwaltungsgesellschaft mbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ruediger Koenen Verwaltungsgesellschaft mbH Bergstr. 17 27624 Bad Bederkesa Germany SAINBACH GMBH: Creditors Meeting Slated for July 18 --------------------------------------------------- The court-appointed insolvency manager for Sainbach GmbH & Co. KG, Wolfgang Pieper, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on July 18. The meeting of creditors and other interested parties will be held at: The District Court of Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on Aug. 29 at the same venue. Creditors have until July 30 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Wolfgang Pieper Jahnstr. 74 63743 Aschaffenburg Germany Tel: 06028/997718 Fax: 06028-997719 The District Court of Aschaffenburg opened bankruptcy proceedings against Sainbach GmbH & Co. KG on May 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sainbach GmbH & Co. KG Stengerstr. 9 63741 Aschaffenburg Germany SICHERHEITS BEWACHUNGSUNTERNEHMEN: Creditors' Claims Due June 21 ---------------------------------------------------------------- Creditors of Sicherheits- und Bewachungsunternehmen GmbH have until June 21 to register their claims with court-appointed insolvency manager Michael Schoor. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Schoor Schorlemmerstrasse 2 04155 Leipzig Germany The District Court of Leipzig opened bankruptcy proceedings against Sicherheits- und Bewachungsunternehmen GmbH on May 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sicherheits- und Bewachungsunternehmen GmbH Fritz-Siemon-Strasse 15 04347 Leipzig Germany SOCCER - ARENA: Creditors Must Register Claims by July 10 --------------------------------------------------------- Creditors of Soccer - Arena Schkopau GmbH have until July 10 to register their claims with court-appointed insolvency manager Stephan Poppe. Creditors and other interested parties are encouraged to attend the meeting at 10:40 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 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: Stephan Poppe Emil-Eichhorn-Str. 1 06114 Halle Germany Tel: 0345/530490 Fax: 0345/5304926 The District Court of Halle-Saalkreis opened bankruptcy proceedings against Soccer - Arena Schkopau GmbH on May 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Soccer - Arena Schkopau GmbH Philipp-Mueller-Str. 87 06110 Halle Germany TEXDORF ASSENHANDELS: Creditors Must Register Claims by July 9 -------------------------------------------------------------- Creditors of Texdorf Assenhandels GmbH have until have until July 9 to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:25 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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Texdorf Assenhandels GmbH on May 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Texdorf Assenhandels GmbH Attn: Youngse Kim, Manager Senke 14 22393 Hamburg Germany =================== K A Z A K H S T A N =================== ALEM STAR: Proof of Claim Deadline Slated for July 17 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Alem Star Multimedia insolvent. Creditors have until July 17 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-3, 138 Almaty Kazakhstan Tel: 8 777 223 07-71 ASMM LLP: Creditors Must File Claims July 17 -------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Asmm insolvent. Creditors have until July 17 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Tel: 8 (3292) 50-97-23 BESKON LLP: Claims Filing Period Ends July 17 --------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Beskon insolvent. Creditors have until July 17 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Tel: 8 (3292) 50-97-23 ENBEK LLP: Claims Registration Ends July 17 ------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Enbek (RNN 531200002919). Creditors have until July 17 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Room 208 Jangusurov Str. 113A Taldykorgan Almaty Kazakhstan PMS-77 LLP: Creditors' Claims Due July 17 ----------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP PMS-77 insolvent. Creditors have until July 17 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-3, 138 Almaty Kazakhstan Tel: 8 777 223 07-71 SAYSAN-FISH RYBA: Proof of Claim Deadline Slated for July 13 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Corporation Saysan-Fish Ryba insolvent. Creditors have until July 13 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Serikbaev Str. 29-7 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 25-15-33 SHEBERHANA OJSC: Creditors Must File Claims July 13 --------------------------------------------------- OJSC Sheberhana has declared insolvency. Creditors have until July 13 to submit written proofs of claim to: OJSC Sheberhana Tolebi Str. 2 Tolebi Shusky district Jambyl Kazakhstan STANDARD-2 LLP: Claims Filing Period Ends July 17 ------------------------------------------------- AThe Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Standard-2 insolvent. Creditors have until July 17 to submit written proofs of claim to: AThe Specialized Inter-Regional Economic Court of East Kazakhstan Ushanov Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakstan Tel: 8 (3232) 26-24-41 UYUT LLP: Claims Registration Ends July 17 ------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Uyut insolvent. Creditors have until July 17 to submit written proofs of claim to: AThe Specialized Inter-Regional Economic Court of East Kazakhstan Ushanov Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakstan Tel: 8 (3232) 26-24-41 =================== K Y R G Y Z S T A N =================== ELAN EXPRESS: Proof of Claim Deadline Slated for July 11 -------------------------------------------------------- LLC Elan Express has declared insolvency. Creditors have until July 11 to submit written proofs of claim to: LLC Elan Express Molodaya Gvardiya Ave. 41 Bishkek Kyrgyzstan EXPRESS-SAPAR LLC: Creditors Must File Claims by July 11 -------------------------------------------------------- LLC Express-Sapar has declared insolvency. Creditors have until July 11 to submit written proofs of claim to: LLC Express-Sapar Eletsky Str. 28 Bishkek Kyrgyzstan Tel: (+996 312) 93-63-25 =================== L U X E M B O U R G =================== TEKSID ALUMINUM: Gets Consent Solicitation to Amend Indenture ------------------------------------------------------------- Teksid Aluminum Luxembourg S.a.r.l., S.C.A. disclosed that, as of 12:00 p.m., New York City time (5:00 p.m., London time), on Thursday, June 7, 2007, consents representing approximately 70% of the EUR205,598,000 aggregate principal amount of its outstanding 11-3/8% Senior Notes due 2011 have been validly delivered pursuant to its previously announced solicitation of consents to implement certain proposed amendments to the indenture governing the Senior Notes and to give effect to an 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. Consequently, the Company, the note guarantors and the trustee executed a supplemental indenture on Thursday, June 7, 2007. Accordingly, the proposed amendments have become operative in accordance with their terms and the Waiver has become effective. The consent solicitation expired on Friday, June 8, 2007 at 10:00 a.m., New York City time (3:00 p.m., London time). The indenture amendments: (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 no later than June 19, 2007, and (c) fix a technical error in the Indenture. 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. * * * 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. 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'. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Earns EUR241 Million in First Quarter 2007 ------------------------------------------------------------- Koninklijke Ahold N.V. posted EUR241 million in net profit on EUR13.22 billion in net revenues for the first quarter of 2006, compared with EUR246 million in net profit on EUR13.32 billion in net revenues for the same period in 2006. "The first quarter showed an encouraging start to the year," Chief Executive Officer Anders Moberg said. Ahold attributed its lower profit and revenues to worse margins and a weaker dollar, Reuters reports. Ahold's Stop & Shop unit experienced a decline in operating profit, blaming a current restructuring of its U.S. operations, the Associated Press relates. The company, Foo Yun Chee writes for Reuters, is overhauling its Stop & Shop and Giant-Landover stores in the U.S. by cutting prices, adding private-label goods and selling variety of products. Mr. Chee suggests that Ahold was hoping to duplicate the success of its Albert Heijin unit, which first quarter performance allowed Ahold to offset its temporary decline in the U.S. �Albert Heijn had a very good performance,� said Erwin Dut pf Kempen & Co. told Bloomberg News. �The chain has an enormous momentum as it is still benefiting from the price war it ignited some years ago.� "U.S. retail reports in line with expectations and provides more comfort that the value improvement program implementation will be successful," Rabo Securities analysts told Reuters. Mr. Moberg revealed that Ahold is eyeing �small, fill-in acquisitions." About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. It has operations in Argentina. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * In a TCR-Europe report on May 11, 2007, Moody's Investors Service placed the Ba1 Corporate Family Rating and the Ba1 Senior Unsecured Long-Term Rating of Koninklijke Ahold N.V. on review for possible upgrade. The action follows the company's recent announcement that it has agreed to the disposal of its U.S. Foodservice business to private equity funds for US$7.1 billion. As reported in the TCR-Europe on May 7, 2007, Fitch Ratings upgraded the Issuer Default and senior unsecured ratings of Royal Ahold N.V. (nka Koninklijke Ahold N.V.) to 'BB+' from 'BB'. The Outlook on the Issuer Default rating remains Positive. Its Short-term rating is affirmed at 'B'. =========== P O L A N D =========== AFFILIATED COMPUTER: Suspends Exclusivity Pact with Cerberus ------------------------------------------------------------ Affiliated Computer Services Inc. has reached an agreement with Darwin Deason, the holder of approximately 42% of the company's outstanding voting stock and chairman of the board of directors, and Cerberus Capital Management LP, to suspend the Exclusivity Agreement between Mr. Deason and Cerberus. The suspension of the agreement will enable the company, under the direction of an appointed Special Committee of independent directors, to consider the sale of the company, which it considers to be in the best interests of the company and its stockholders. On March 20, 2007, the company received a proposal from Mr. Deason and Cerberus to acquire all of the outstanding shares of the company's common stock, other than certain shares and options held by Mr. Deason and members of the company's management team that would be rolled into equity securities of the acquiring entity, for US$59.25 per share in cash. Mr. Deason and Cerberus subsequently increased the offer price to US$62 per share in cash. In connection with their proposal, Mr. Deason and Cerberus entered into an Exclusivity Agreement, dated March 20, 2007, pursuant to which Mr. Deason agreed to work exclusively with Cerberus to negotiate an acquisition of the company. Pursuant to the terms of a Waiver Agreement, dated as of June 10, 2007, between Mr. Deason, Cerberus and the company, from June 16, 2007 through Aug. 9, 2007, the Special Committee and its financial advisors, Lazard Freres & Co. LLC, will be soliciting indications of interest in a transaction involving the company, permitting interested parties, including Cerberus, to conduct due diligence, and having discussions with such interested parties regarding potential transactions involving the company, well as considering all other strategic alternatives available to the company. Also during this period, Mr. Deason will be free to have discussions and negotiations with parties other than Cerberus interested in a potential transaction with the company. If the company enters into an agreement with a party other than Cerberus on or prior to Aug. 19, 2007, the Exclusivity Agreement terminates. Under the terms of the Waiver Agreement, the company will reimburse Cerberus for up to US$7.5 million of documented out-of-pocket expenses incurred by Cerberus in connection with its proposal. In addition, if the company enters into a transaction with another party, the company will pay Cerberus US$15 million upon consummation of that transaction if, at the time the transaction is signed or closed, Cerberus has not withdrawn its proposal to acquire the company, has not reduced its offer price below $62 per share or otherwise modified its proposal in a manner that is materially adverse to the company, and is diligently pursuing an acquisition of the company. Mr. Deason will pay Cerberus 40% of the positive difference between the value of what Mr. Deason will receive in a transaction consummated with another party and what Mr. Deason would have received under the Cerberus proposal. The Special Committee believes that the terms of the Waiver Agreement will enable it to conduct a process for considering strategic alternatives available to the company, including a potential sale of the company that it considers to be in the best interests of the company and its stockholders. There is no assurance that the process undertaken by the Special Committee will result in any transaction, including a transaction with Mr. Deason and Cerberus or any other parties. Interested parties in exploring a potential transaction with the company may contact the Special Committee's financial or legal advisors: -- Financial Advisors Attn: Michael J. Biondi/Alex Stern/David Descoteaux Lazard Freres & Co. LLC Tel: (212) 632-6000 -- Legal Advisors Attn: Thomas A. Roberts/Michael J. Aiello Weil, Gotshal & Manges LLP Tel: (212) 310-8000 About Cerberus Capital Management Headquartered in New York City, and established in 1992, Cerberus Capital Management LP is one of the world's leading private investment firms with approximately US$25 billion of capital under management in funds and accounts. Through its team of investment and operations professionals, Cerberus specializes in providing both financial resources and operational expertise to help transform its portfolio companies into industry leaders for long-term success and value creation. Cerberus has offices in Los Angeles, Chicago and Atlanta, well as advisory offices in London, Baan, Frankfurt, Tokyo, Osaka and Taipei. About Affiliated Computer Services Headquartered in Dallas, Texas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.acs-inc.com/-- is a FORTUNE 500 company. It provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland and Singapore. * * * As reported in the Troubled Company Reporter on March 29, 2007, Fitch Ratings placed Affiliated Computer Services Inc. on Rating Watch Negative after the proposed offer from Darwin Deason, founder and current chairman of ACS, and Cerberus Capital Management L.P. to acquire the company in a leveraged buyout transaction valued at US$8.2 billion, including existing debt. Ratings affected were (i) Issuer Default Rating 'BB'; (ii) Senior secured revolving credit facility at 'BB'; (iii) Senior secured term loan at 'BB'; and (iv) Senior notes at 'BB-'. ELEKTRIM S.A.: Vivendi Files Suit for Fraud & Breach of Contract ---------------------------------------------------------------- Vivendi Holdings 1 Corp., the assignee of all claims held by, among others, General Motors Corp. with respect of its holding, through Everest Capital Ltd., of Elektrim Finance BV 2% EUR510,000,000 bonds due 12/18/2005, filed suit in the United States District Court for the Southern District of Florida against: -- Law Debenture Trust Corporation, Plc (U.K.) for Breach of Fiduciary Duty and Breach of Contract, and -- Elekrim S.A. for Fraud and Breach of Contract. LDTC served as Elektrim's bond trustee. Among other things, the Complaint alleges that LDTC: (i) breached its fiduciary duty to General Motors and other Elektrim bondholders and (ii) breached the Second Supplemental Trust Deed, when it failed to disclose material information to the bondholders prior to the bondholders' decision to withdraw their bankruptcy petition against Elektrim and when it knowingly accepted proceeds of an illegal transaction. According to a statement by Vivendi's attorney, Alexander Angueira, if that information had been disclosed, both General Motors and Everest Capital would not have supported the withdrawal of the bankruptcy petition, and General Motors and Everest Capital would have retained the right to recapture assets that Elektrim had fraudulently transferred, including shares of Polska Telfonia Cyfrowa Sp. z o.o. that were illegally transferred to Deutsche Telekom AG. The Complaint seeks damages and an injunction requiring LDTC to hold in escrow the proceeds relating to the illegal transfer to DT of shares of PTC. Vivendi has demanded that LDTC maintain the status quo and not disburse or transfer any funds relating to the illegal transfer of PTC shares until the District Court has resolved the issues raised by the Complaint. Any disbursement of the funds could prejudice General Motor's rights and those of Vivendi as assignee to additional funds from Elektrim under the Debt Restructuring Agreement as set forth in the Complaint. Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- engages in the power and telecommunication businesses. In addition to its core business activities, Elektrim also manufactures sells cables, and provides data transmission services. In November 2005, an English court rejected Elektrim's appeal on a decision declaring it in breach of bond conditions. The Court ordered Elektrim in September 2005 to immediately buy back EUR471.4 million of bonds for having broken a restructuring agreement signed in 2002. Holders demanded immediate buyout of their bonds, which was worth EUR470 million. Elektrim was due to redeem the bonds on Dec. 15, 2005, but failed. Elektrim said it was impossible to redeem the bonds since the court has frozen its assets. Bondholders filed the motion to freeze Elektrim's assets, fearing the group would hide its assets and declare bankruptcy to avoid repaying its debt. The company said it would repay the debt if the collateral were cancelled. On Sept. 29, 2006, Elektrim filed a bankruptcy petition with the possibility of an arrangement, five days before its creditors were set to launch a lawsuit over the bankruptcy. Creditors were demanding the company's liquidation and the introduction of an official bankruptcy assignee since they have not received payments from the company for nearly two years. In a TCR-Europe report on Nov. 2, 2006, a Court in Warsaw rejected the bankruptcy petition for Elektrim S.A. filed by the company's creditors and Elektrim Telekomunikacja, following a partial repayment of the company's debt. Under an option agreement, Elektrim sold its 48% stake in Polska Telefonia Cyfrowa to Deutsche Telekom for EUR604 million. Deutsche Telekom, however, paid the amount to a Vienna arbitration court. On Oct. 26, 2006, Elektrim received EUR525 million of the amount and used it to repay its bondholders. The partial repayment prompted the Warsaw Court to dismiss the bankruptcy petition the next day. OPEN TRAVEL: Bankruptcy Premeditated, Prosecutors Say ----------------------------------------------------- The bankruptcy of Polish holiday company Open Travel, which was insured by PLN4 million, was premeditated, Warsaw Business Journal reports citing prosecutors. According to the report, the bankruptcy prompted insurers to increase their rates for travel agencies by up to 40%. Warsaw Business Journal says Open Travel was insured for an amount twice less than it should have been. The holiday company declared bankruptcy on Sept. 26, 2006. It was considered the largest bankruptcy in the travel sector in Poland. =========== R U S S I A =========== AVNYUGSKIY WOOD-PROM-KHOZ: Creditors Must File Claims by July 19 ---------------------------------------------------------------- Creditors of OJSC Avnyugskiy Wood-Prom-Khoz have until July 19 to submit proofs of claim to: A. Galina Insolvency Manager Post User Box 14 Kotlas 165300 Arkhangelsk Russia The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-7100/2006-28. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: OJSC Avnyugskiy Wood-Prom-Khoz Avnyugskiy Verkhnetoemskiy 165511 Arkhangelsk Russia BRICKWORKS STANDARD: Creditors Must File Claims by June 19 ---------------------------------------------------------- Creditors of LLC Brickworks Standard (TIN 7412008114) have until June 19 to submit proofs of claim to: M. Moiseev Insolvency Manager Post User Box 249 620014 Ekaterinburg Russia The Arbitration Court of Chelyabinsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A76-2484/2007-48-33. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: M. Moiseev Insolvency Manager Post User Box 249 620014 Ekaterinburg Russia CB EURO-PROM-INVEST: Creditors Must File Claims by July 19 ----------------------------------------------------------- Creditors of OJSC CB Euro-Prom-Invest have until July 19 to submit proofs of claim to: State Corporation Agency on Endowment Insurance Insolvency Manager Verkhne-Vaganskiy Tupik Str. 4 109240 Moscow Russia The Representative of Insolvency Manager Post User Box 11 123022 Moscow Russia Tel: 8-800-200-08-05 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-78163/06-71-1174B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: OJSC CB Euro-Prom-Invest Building 1 Pogodinskaya Str. 24 119435 Moscow Russia INPRODUCT CJSC: Creditors Must File Claims by July 19 ----------------------------------------------------- Creditors of CJSC Inproduct have until July 19 to submit proofs of claim to: N. Pavlov Insolvency Manager Building 2 Stolovyj Per. 6 121069 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40 2309/07-36-6B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Region Russia The Debtor can be reached at: CJSC Inproduct Building 2 B. Nikitskaya Str. 18 125009 Moscow Russia KRUTOYARSKOYE CJSC: Bankruptcy Hearing Slated for Sept. 5 --------------------------------------------------------- The Arbitration Court of Chelyabinsk will convene on Sept. 5 to hear the bankruptcy supervision procedure on CJSC Krutoyarskoye. The case is docketed under Case No. A76-1641/2007-48-34. The Temporary Insolvency Manager is: N. Volkov Korabelnaya Str. 8-136 454045 Chelyabinsk Russia The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: CJSC Krutoyarskoye Oktyabrkiy Chelyabinsk Russia LEN-GAS-ENERGO: Creditors Must File Claims by July 19 ----------------------------------------------------- Creditors of CJSC Len-Aas-Energo have until July 19 to submit proofs of claim to: N. Karpova Insolvency Manager Apt.128 K. Marksa Str. 13 163000 Arkhangelsk Russia Tel/Fax: 20-18-28 The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. AO5-13292/2006-8. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: CJSC Len-Aas-Energo K. Zinina Str. 2a Yarensk Lenskiy 165780 Arkhangelsk Russia MORDOV-SEL-KHOZ-KHIMIYA: Creditors Must File Claims by July 19 -------------------------------------------------------------- Creditors of OJSC Mordov-Sel-Khoz-Khimiya have until July 19 to submit proofs of claim to: N. Burykin Insolvency Manager Building 2 Lenina Pr. 12a Saransk 430000 Mordoviya Russia The Arbitration Court of Mordoviya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A39-5442/06-163/12. The Court is located at: The Arbitration Court of Mordoviya Kommunisticheskaya Str. 33 Saransk Mordoviya Republic Russia The Debtor can be reached at: OJSC Mordov-Sel-Khoz-Khimiya Saransk Mordoviya Russia ORENBURGSKAYA TRADING: Creditors Must File Claims by June 19 ------------------------------------------------------------ Creditors of LLC Orenburgskaya Trading Company (TIN/KPP 5611035084/561101001) have until June 19 to submit proofs of claim to: S. Egorova Insolvency Manager Post User Box 44 Orlova Str. 5 460006 Orenburg Russia Tel/Fax: (3532) 78-38-36 The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-1567/2007-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Region Russia The Debtor can be reached at: LLC Orenburgskaya Trading Company Turgeneva Str. 17 460023 Orenburg Russia PMK-14 CJSC: Saratov Bankruptcy Hearing Slated for Oct. 3 --------------------------------------------------------- The Arbitration Court of Saratov will convene on Oct. 3 to hear the bankruptcy supervision procedure on CJSC PMK-14. The case is docketed under Case No. A-57-103/07-40. The Insolvency Manager is: M. Sotnik Tsvetochnaya Str. 1 B 410009 Saratov Russia The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Region Russia The Debtor can be reached at: CJSC PMK-14 Dachnaya Str. 5 Engels 413117 Saratov Russia RAND CJSC: Creditors Must File Claims by June 19 ------------------------------------------------ Creditors of CJSC Rand have until June 19 to submit proofs of claim to: A. Tarasov Insolvency Manager Office 56 Building 1 K. Marksa Str. 31 163000 Arkhangelsk Russia The Arbitration Court of Murmansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-1535/2007. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Region Russia The Debtor can be reached at: CJSC Rand Maklakova Str. 30 Murmansk Russia SHABALINSKIY FLAX: Creditors Must File Claims by June 19 -------------------------------------------------------- Creditors of OJSC Shabalinskiy Flax Factory have until June 19 to submit proofs of claim to: V. Sitnikov Insolvency Manager Derendyaeva Str., 14 610000 Kirov Russia The Arbitration Court of Kirov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-129/07-68/24. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Region Russia The Debtor can be reached at: OJSC Shabalinskiy Flax Factory Garyaevy Shabalinskiy Kirov Russia SHENGA-WOOD LLC: Creditors Must File Claims by June 19 ------------------------------------------------------ Creditors of LLC Shenga-Wood have until June 19 to submit proofs of claim to: S. Tifanov Insolvency Manager Volodarskogo Str., 36a 163000 Arkhangelsk Russia The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-3292/2007. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Region Russia The Debtor can be reached at: LLC Shenga-Wood Apt. 3 Lomonosova Str. 89B Shenkursk Arkhangelsk Russia SOLID PROPELLANT: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Krasnoyarsk commenced bankruptcy supervision procedure on Municipal Unitary Enterprise Solid Propellant. The case is docketed under Case No. A33-1575/2007. The Temporary Insolvency Manager is: E. Rafalskiy Premise 182 Abakanskaya Str. 41 Minusinsk 662603 Krasnoyarsk Russia The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: Municipal Unitary Enterprise Solid Propellant Shushenskoye Krasnoyarsk Russia VIMPELCOM: Court Upholds Acquisition of Ukrainian Radio Systems --------------------------------------------------------------- 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 court�s decision upheld the validity of the September 2005 shareholder vote which approved the acquisition of CJSC "Ukrainian Radio Systems"as an interested party transaction. The ruling is final and may not be appealed. With today�s ruling, VimpelCom has now 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. The VimpelCom Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The VimpelCom Group's GSM and 3G license portfolio covers a territory with a population of about 250 million. This includes the entire territories of Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange. VimpelCom's ADSs are listed on the NYSE under the symbol "VIP". About VimpelCom Headquartered in Moscow, Russia, VimpelCom (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. * * * As reported in the TCR-Europe on March 13, 2007, Moody's Investors Service upgraded the corporate family and existing bond ratings of Open Joint Stock Company Vimpel Communications to Ba2 from Ba3. Moody's said the outlook on the ratings is stable. ZNAMENSKAYA OJSC: Creditors Must File Claims by July 19 ------------------------------------------------------- Creditors of OJSC Agricultural Company Znamenskaya have until July 19 to submit proofs of claim to: S. Artamonov Insolvency Manager Post User Box 223 241050 Bryansk Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-4859/06-20b. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Region Russia The Debtor can be reached at: OJSC Agricultural Company Znamenskaya Kirova Str. 24 Znamenskoye Znamenskiy Orel Russia ========= S P A I N ========= SURGILIGHT INC: March 31 Balance Sheet Upside-Down by US$625,891 ---------------------------------------------------------------- SurgiLight Inc. reported a net loss of US$137,258 on revenue of US$119,000 for the first quarter ended March 31, 2007, compared with a net loss of US$294,845 on zero revenue for the same period in 2006. Equipment sales for the quarter ended March 31, 2007, increased to US$119,000 from US$0 during the quarter ended March 31, 2006. The 2007 quarter revenue increase was due to the company continuing to develop its international sales and marketing activities, especially in the European Community where it received CE approval during February 2005. At March 31, 2007, the company's balance sheet showed US$4,895,810 in total assets, US$5,521,701 in total liabilities, resulting in a US$625,891 total stockholders' deficit. The company's balance sheet at March 31, 2007, also showed strained liquidity with US$694,509 in total current assets available to pay US$5,521,701 in total current liabilities. 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?20ca Going Concern Doubt Richard L. Brown & Company P.A., in Tampa, Florida, expressed substantial doubt about SurgiLight Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's losses from operations and net capital deficiency. About SurgiLight Inc. Headquartered in Orlando, Florida. SurgiLight Inc. (Other OTC: SRGL.PK) -- http://www.surgilight.com/index.html-- distributes ophthalmic lasers and related products and services based on its own and licensed intellectual property, primarily for use in refractive and presbyopia procedures. The company has operations in China, Mexico and Spain. ===================== S W I T Z E R L A N D ===================== BRENTSCH IMMOBILIEN: Creditors' Liquidation Claims Due June 25 -------------------------------------------------------------- Creditors of JSC Brentsch Immobilien have until June 25 to submit their claims to: Beatrice Ronzani-Boscardin Liquidator Goethestrasse 25 9008 St. Gallen Switzerland The Debtor can be reached at: JSC Brentsch Immobilien St. Gallen Switzerland CHEZ JEANNETTE: Creditors' Liquidation Claims Due June 25 --------------------------------------------------------- Creditors of LLC Chez Jeannette have until June 25 to submit their claims to: Heinz Wiederkehr Liquidator Rummelstrasse 27 5610 Wohlen Bremgarten AG Switzerland The Debtor can be reached at: LLC Chez Jeannette Aarau AG Switzerland CNS LLC: Creditors' Liquidation Claims Due June 22 -------------------------------------------------- Creditors of LLC CNS have until June 22 to submit their claims to: Gertrud Khiar Liquidator Buhlstrasse 6 Postfach 2116 8645 Rapperswil-Jona See-Gaster SG Switzerland The Debtor can be reached at: LLC CNS Rapperswil-Jona See-Gaster SG Switzerland FUNK-TAXI A. CATHREIN: Creditors' Liquidation Claims Due June 25 ---------------------------------------------------------------- Creditors of JSC Funk-Taxi A. Cathrein have until June 25 to submit their claims to: Treuhandburo Bruno Ittig Liquidator Furkastrasse 3983 Morel Switzerland The Debtor can be reached at: JSC Funk-Taxi A. Cathrein Brig-Glis VS Switzerland HEBETECH LLC: Creditors' Liquidation Claims Due June 22 ------------------------------------------------------- Creditors of LLC Hebetech have until June 22 to submit their claims to: Rolf Nyfeler Liquidator Oberriedenstr. 62 5412 Gebenstorf Baden AG Switzerland The Debtor can be reached at: LLC Hebetech Turgi Baden AG Switzerland HERCULES INC: Moody's Keeps Corporate Family Rating at Ba2 ---------------------------------------------------------- Moody's Investors Service affirmed the Ba2 corporate family rating of Hercules, Inc. and changed the rating outlook to positive from stable. At the same time, Hercules speculative grade liquidity rating was raised to SGL-1 from SGL-2 indicating very good liquidity over the next 12 months. The positive outlook reflects Moody's anticipation that Hercules can reduce debt by roughly US$200 million in 2007 and that this will cause credit metrics to improve to levels that are strong relative to the Ba2 rating by the end of this year. About US$21 million of the Term Loan B was paid down in the first quarter of 2007. The outlook improvement also reflects Moody's expectation of further debt reduction in 2008 and 2009, after which Moody's expects absolute debt levels to stabilize. Provided that capital expenditures remain moderate, there are no large acquisitions and prospective dividend actions/share repurchases are prudently sized, the company should be able to generate retained cash flow to adjusted total debt above 20%, free cash flow to adjusted total debt of over 10%, and a fixed charge coverage ratio (EBITDA to interest) of over 4.5X times. If these metrics are realized Moody's could reassess the appropriateness of the Ba2 ratings after the end of 2007. Conversely, an unexpected increase in legacy liabilities and bolt on acquisitions that would cause debt to remain at or above US$900 million could cause Moody's outlook to return to stable. Ratings Raised: -- SGL raised to SGL-1 from SGL-2 Ratings affirmed: -- CFR: Ba2; -- PDR: Ba2; -- US$150 million Gtd Sr Sec Revolving Credit Facility due 10/2010, Baa3, LGD2, 18%; -- US$354 million Gtd Sr Sec Term Loan B due 10/2010, Baa3, LGD2, 18%; -- US$100 million 6.60% Gtd Sr Sec Putable Notes due 2027, Baa3, LGD2, 18%; -- US$16 million 11.125% Gtd Sr Unsec Notes due 2007, Ba2, LGD3, 40%; -- US$250 million 6.75% Gtd Sr Sub Notes due 2029, Ba3, LGD4, 61%; -- US$3 million 8.00% Conv Sub Debentures due 2010, B1, LGD5, 89%; -- US$217 million 6.50% Jr Sub Deferrable Int. Debentures due 2029, B1, LGD5, 89%. The Speculative Grade Liquidity rating was raised reflecting improvements in: (1) the company's cash flow; (2) the availability under its committed bank facilities; and (3) the headroom under its covenant requirements. Hercules' Ba2 CFR is supported by leading market positions in its two main businesses including the Aqualon Group and the Paper Technologies/Ventures Group and particularly by relatively strong EBITDA operating margins of over 20% in the Aqualon group. The Aqualon Group has the higher organic growth potential while the Paper Group's growth potential is more aligned with GDP growth rates. The rating has been tempered by weak financial metrics with Debt/EBITDA averaging 4.1X and EBITDA/Interest averaging 3.0X over the last three years. The credit profile has been negatively impacted by legacy liabilities (asbestos and environmental) and significant debt-like obligations (pensions and operating leases) although Moody's expects the pension underfunding to improve at the end of 2007 as it did in 2006. The rating is supported by Hercules' significant cash balance, which stood at US$160 million as of March 31, 2007. Cash increased significantly after the sale of 51% of FiberVisions and US$103 million of these proceeds were subsequently used to redeem all but US$16 million of the 11.125% notes due 2007 via a tender offer. With the exception of the ongoing asbestos liability, Moody's expects that the bulk of the negative cash flow impact related to Hercules' lawsuits and legacy liabilities will be more muted in the future than it has been in the recent past. Hercules will become responsible for the cash portion of its asbestos settlements and defense expenses starting in 2008. These payments will continue until Hercules' Future Coverage Agreement settlement with its insurers becomes effective, which occurs after about US$260 million of incremental costs have been paid by the company. Assuming these costs average US$35 million per year, this insurance coverage will not initiate until after 2014. Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE: HPC) -- http://www.herc.com/-- is a global manufacturer and marketer of specialty chemicals and related services. Its principal products are chemicals for the paper industry, water-soluble polymers, and specialty resins. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. Revenues for the LTM period ending March 31, 2007 were about US$2 billion. INDIKA LLC: Creditors' Liquidation Claims Due June 25 ----------------------------------------------------- Creditors of LLC Indika have until June 25 to submit their claims to: Fernando Elmo Liquidator Zurichstrasse 39 8840 Einsiedeln SZ Switzerland The Debtor can be reached at: LLC Indika Einsiedeln SZ Switzerland JUWACO JSC: Creditors' Liquidation Claims Due June 22 ----------------------------------------------------- Creditors of JSC Juwaco have until June 22 to submit their claims to: Eduard Germann Liquidator Eichbergstrasse 2 7205 Zizers Landquart GR Switzerland The Debtor can be reached at: JSC Juwaco Zizers Landquart GR Switzerland MAX STADLER: Creditors' Liquidation Claims Due June 22 ------------------------------------------------------ Creditors of JSC Max Stadler have until June 22 to submit their claims to: Brigitte Stadler Liquidator Hauptstrasse 149 3286 Muntelier See FR Switzerland The Debtor can be reached at: JSC Max Stadler Muntelier See FR Switzerland SCHMID & PARTNER: Creditors' Liquidation Claims Due June 22 ----------------------------------------------------------- Creditors of LLC Schmid & Partner, Schonentannen have until June 22 to submit their claims to: Hanspeter Schmid Liquidator Schonentannen 3152 Mamishaus Switzerland The Debtor can be reached at: LLC Schmid & Partner, Schonentannen Wahlern Schwarzenburg BE Switzerland SU KOSMETIK: Creditors' Liquidation Claims Due June 25 ------------------------------------------------------ Creditors of JSC SU Kosmetik Vertrieb have until June 25 to submit their claims to: JSC Fogal Liquidator Claridenstrasse 20 8002 Zurich Switzerland The Debtor can be reached at: JSC SU Kosmetik Vertrieb Zurich Switzerland =========== T U R K E Y =========== PETROKIMYA HOLDING: Administration Extends Bidding Deadline ----------------------------------------------------------- The Turkish Privatization Administration (OIB) moved the final bidding date for Petkim Petrokimya Holding A.S. to June 28, 2007, from June 15, 2007, Seeurope reports, citing Today's Zaman as its source. In a written statement, Metin Kilci, OIB president told Istanbul Stock Exchange that the extended deadline for privatization of Petkim's 51% share by block sale is in accordance with the sixth article to the bid specifications. As reported in the TCR-Europe on April 11, 2007, OIB announced on Feb. 8 a privatization tender of 51% of Petkim shares through a block sale. The administration owns 54% of Pektim and the Republic of Turkey, State Pension Fund holds 7%. Currently, 39% of Petkim shares are traded on the Istanbul Stock Exchange. Headquartered in Turkey, Petkim Petrokimya Holding A.S. -- http://www.petkim.com.tr/-- is a petrochemical company. It was founded in 1965 as a state-owned entity in Turkey. * * * As reported in the TCR-Europe on April 11, 2007, Fitch Ratings assigned BB Local Currency and Foreign Currency Issuer Default ratings to Petkim Petrokimya Holdings A.S., with Outlooks Stable. ============= U K R A I N E ============= BIOSENT-TECH LLC: Claims Filing Deadline Set June 16 ---------------------------------------------------- Creditors of LLC Biosent-Tech (code EDRPOU 34454213) have until June 16 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/163-b. The Debtor can be reached at: LLC Biosent-Tech Vozdukhoflotsky Avenue 54 03151 Kiev Ukraine KOBO LLC: Creditors Must File Claims by June 16 ----------------------------------------------- Creditors of LLC Kobo (code EDRPOU 32750741) have until June 16 to submit their proofs of claim to: Liudmila Katereniuk Liquidator Krasnoarmeyskaya Str.102 58000 Chernovcy Ukraine The Economic Court of Chernovcy commenced bankruptcy supervision procedure on the company on April 24. The case is docketed under Case No. 8/75/B. The Court is located at: The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Debtor can be reached at: LLC Kobo Apartment 30 Solnechny District 18 Novodniestrovsk 60236 Chernovcy Ukraine KROTOM-SV LLC: Claims Filing Deadline Set June 16 ------------------------------------------------- Creditors of LLC Krotom-SV (code EDRPOU 33832662) have until June 16 to submit their proofs of claim to: LLC Fars Travel Liquidator Mayakovsky Avenue 02222 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/130-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Krotom-SV Panas Mirny Str. 16/13 01103 Kiev Ukraine LADKOM-VV LLC: Claims Filing Deadline Set June 16 ------------------------------------------------- Creditors of LLC Ladkom-VV (code EDRPOU 33743170) have until June 16 to submit their proofs of claim to: LLC Fars Travel Liquidator Mayakovsky Avenue 02222 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/129-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Ladkom-VV Railway Highway 47 01103 Kiev Ukraine SHPOLA MOVABLE 2: Claims Filing Deadline Set June 16 ---------------------------------------------------- Creditors of OJSC Shpola Movable Mechanized Column 2 (code EDRPOU 03587827) have until June 16 to submit their proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 01/5634. The Debtor can be reached at: OJSC Shpola Movable Mechanized Column 2 Shpola Lebedinskaya Str. 142 Cherkassy Ukraine TAIFUN LLC: Claims Filing Deadline Set June 16 ---------------------------------------------- Creditors of LLC Taifun (code EDRPOU 24911798) have until June 16 to submit their proofs of claim to: The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 16/114/07. The Debtor can be reached at: LLC Taifun Griaznov Str. 51/10 Zaporozhje Ukraine TITUS LLC: Claims Filing Deadline Set June 16 --------------------------------------------- Creditors of LLC Titus (code EDRPOU 33869954) have until June 16 to submit their proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 16/115/07. The Debtor can be reached at: LLC Titus Griaznov Str. 51/10 Zaporozhje Ukraine TORGOVITSA: Claims Filing Deadline Set June 16 ---------------------------------------------- Creditors of Torgovitsa (code EDRPOU 02777856) have until June 16 to submit their proofs of claim to: Vasily Rybak Liquidator Kiev Str. 34 Apartment 117 33027 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/23. The Court is located at: The Economic Court of Rivne Yavornitski Str. 59 33001 Rivne Ukraine The Debtor can be reached at: Torgovitsa Rivne Ukraine Mlinov District VOLOSHKA: Creditors Must File Claims by June 16 ----------------------------------------------- Creditors of Children's Health Camp Voloshka (code EDRPOU 30296675) have until June 16 to submit their proofs of claim to: O. Briukhovetsky Temporary Insolvency Manager Stary Podol Str. 8 36011 Poltava Ukraine The Economic Court of Poltava commenced bankruptcy supervision procedure on the company on April 24. The case is docketed under Case No. 4/34. The Court is located at: The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Debtor can be reached at: Children's Health Camp Voloshka Golovach 38774 Poltava Ukraine =========================== U N I T E D K I N G D O M =========================== BOMBARDIER REC: Moody's Rates CDN250 Mil. Sr. Sec. Loan at Ba2 --------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Bombardier Recreational Products' CDN250 million senior secured revolver and a B1 rating to BRP's CDN1.2 billion senior secured term loan. Proceeds from the transaction will be used to refinance the company's existing debt (CDN800 million term loan) and pay a dividend to its shareholders (the total dividend, which is expected to be paid later in the year, is expected to approximate CAD$535, - CDN435 million from the term loan and CAD$100 million from free cash flow). The ratings on the existing first lien and second lien bank debt will be withdrawn following the close of the transaction. At the same time, Moody's affirmed BRP's B1 corporate family rating and B1 probability of default rating with a negative outlook. "Moody's believes that the significant improvements in the company's cost structure over the last few years demonstrated by the 335 bps gross margin percentage improvement in fiscal 2007 from 2006, diversification in the company's product offerings and the introduction of new products enabled it to maintain a B1 rating, albeit weakly positioned, despite the aggressive financial policies of increasing debt to fund shareholder returns." said Kevin Cassidy, Vice President/Senior Analyst at Moody's Investors Service. "The negative outlook reflects Moody's concern that the company's aggressive financial policies have reduced its financial flexibility to withstand a downturn in the recreational sports industry amid continuing uncertainty in consumer spending" said Mr. Cassidy. "Failure to reduce and sustain adjusted leverage, measured as adjusted debt/EBITDA, below 5x by the end of the year would likely result in a downgrade" Mr. Cassidy further noted. The proposed transaction will increase adjusted leverage to above 5x from 3.8x; adjusted leverage was 4.8x following the May 2006 leverage recapitalization. The negative outlook also reflects Moody's concern over the lack of maintenance financial covenants. The ratings for the term loan and revolver reflect both the overall probability of default of the company, to which Moody's has affirmed the PDR of B1, and a loss given default assessment of LGD2 (26%) for the revolver and LGD4 (53%) for the term loan. Both the revolving credit facility and the term loan benefit from the full guarantees of the existing and future subsidiaries. The revolver has a 1st lien priority interest on inventory and accounts receivable and a 2nd priority lien on the remaining assets, and the term has the inverse security interest. Moody's believes that the term loan's collateral coverage approximates 50%, based on a combination of valuation techniques. Ratings assigned: -- CAD$250 million senior secured revolver, due 2012, at Ba2; -- U.S. equivalent of CAD$1,230 million senior secured term loan, due 2014, at B1; Rating affirmed: -- Corporate family rating at B1; -- Probability of default rating at B1. Headquartered in Quebec, Canada, Bombardier Recreational Products Inc. -- http://www.brp.com/-- a privately held company, is a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. The company's portfolio of brands and products includes: Ski-Doo(R) and Lynx(TM) snowmobiles, Sea- Doo(R) watercraft and sport boats, Johnson(R) and Evinrude(R) outboard engines, direct injection technologies such as Evinrude E-TEC(R), Can-Am(TM) all-terrain vehicles, Rotax(R) engines and karts. The company has operations in Japan, Australia, Brazil, France, the Netherlands, Norway, the United Kingdom, and the United States, among others. Net sales for the 12-month period ended January 2007 were approximately CAD$2.7 billion. CENTRAL GARDEN: Moody's May Cut Low-B Ratings After Review ---------------------------------------------------------- Moody's Investors Service placed the ratings of Central Garden & Pet Company under review for possible downgrade. The review was prompted by the company's announcement that operating performance will be weaker than anticipated, reflecting unfavorable weather conditions in the Southeastern U.S. that have affected the lawn and garden business. Moody's is also concerned that this issue compounds other business challenges, including soft demand in the aquatics category and continued volatility in grain prices that has pressured bird seed margins. LGD assessments are subject to change upon completion of the review. These ratings were placed under review for possible downgrade: -- Corporate family rating at Ba3; -- Probability-of-default rating at Ba3; -- US$150 million senior subordinated notes due 2013 at B2; -- US$350 million senior secured revolving credit facility due 2011 at Ba2; -- US$300 million senior secured term loan due 2012 at Ba2. Moody's review will focus on the impact of weaker than expected results on credit metrics, the outlook for the remainder of fiscal 2007, the company's ability to comply with financial covenants under the senior secured credit facilities that were recently amended, its liquidity position, the potential for excess inventories, and the performance of other key regions. Headquartered in Walnut Creek, California, Central Garden & Pet Company (NASDAQ: CENT) -- http://www.central.com/-- markets and produces branded products for the lawn & garden and pet supplies markets. Products are sold to specialty independent and mass retailers. The company also provides a host of other regional and application-specific garden and pet brands and supplies. The company has approximately 5,000 employees, primarily in North America and Europe. The company has a presence in the United Kingdom. Sales were US$1.7 billion for the 12 months ended March 31, 2007. DONCASTER LAKERS: May Enter Into Liquidation Procedure ------------------------------------------------------ British rugby league club Doncaster Lakers, which entered into a company voluntary arrangement to eliminate debts of more than GBP1 million, may opt for liquidation after potential acquirers called off a proposed takeover, BBC News reports. According to Doncaster owner John Wright, unless GBP25,000 is raised today, Wednesday, June 13, 2007, the rugby league club will have to wind up. Mr. Wright is selling his full shareholding for GBP50,000 at GBP5 a share. He is donating the proceeds directly back to the club. "I took the CVA route to eliminate debts and give new owners a clean sheet, unencumbered by unaffordable contracts and possible claims, at considerable cost to myself," Mr. Wright was quoted BBC as saying. "I was giving my shares to the new owners for just GBP1 yet they still pulled out, and now the situation is very serious." Doncaster intended to submit an application for a Super League franchise in 2009. However, the club encountered financial problems due to low gate receipts, BBC relates. In December 2006 the club moved into the new Keepmoat stadium. EMI MUSIC: Warner Music Confirms Possible Takeover Bid ------------------------------------------------------ Warner Music Group Corp. confirms that it continues actively to consider an offer for EMI Group plc, despite its bid being snubbed in favor of an equity firm. Warner stated in its Web site that such its offer would be pre-conditional on appropriate anti-trust clearances being obtained (or the pre-conditions waived) but not subject to any other pre-condition. A further announcement will be made in due course. EMI, the world's third largest music producer, have been subject to several takeover bids from Warner Music and other equity firms after it suffered losses due to a shrinking CD market and rampant online piracy. On May 21, EMI's board of directors accepted a GBP2.4 billion offer from Terra Firma Capital, subject to shareholder approval. However, Ethan Smith of the Wall Street Journal last week noted that Warner Music believes it could get EMI's recorded-music assets despite Terra Firma's offer. According to that report, Warner's executives and investors may counter Terra Firma's bid, though people close to the company think that Warner will not go much higher than its original GBP2.4 billion offer. WSJ adds that even if Warner acquired EMI, antitrust regulations would require the music firm to sell the publishing house. Two sources familiar with the matter had told Reuters that Warner Music was more likely than not to make an improved offer by early next week. Warner Music Bid Prior to the Terra Firma recommendation, Warner Music sweetened its bid to acquire EMI by offering to pay a break-up fee of between GBP50 million and GBP100 million in case the European Commission blocks its planned takeover of the U.K. music group, Dominic White of The Telegraph relates. On March 2, 2007, EMI rejected Warner Music's GBP2.1 billion non-binding takeover bid, saying that the price of 260 pence per share in cash for EMI is inadequate. According to Mr. White of The Telegraph, EMI also cited concerns that Warner had not offered to take any of the regulatory risk in relation to the takeover. Warner Music, The Telegraph says, indicated to EMI that the break-up fee would not add to its latest bid but would only be applied if the deal were blocked. Warner adds that it is not ready to make an unconditional offer for EMI as it could potentially struggle to find a buyer for the latter's recorded music assets, The Telegraph relates. Warner Music has begun due diligence after gaining access to EMI's books last week, Emiko Terazono and Andrew Edgecliffe- Johnson of The Financial Times report. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. In January 2007, Moody's Investors Service downgraded EMI Group plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. Downgrade and review follow the announcement that EMI: (i) will incur up to GBP150 million in incremental restructuring costs, (ii) has performed below its expectations during its financial year-to-date, (iii) has installed Eric Nicoli, hitherto chairman of the group as CEO of EMI Group and of EMI Recorded Music and is reviewing its balance sheet. FORD MOTOR: Joins GM & Chrysler in Healthcare Fund, Sources Say --------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group, General Motors Corp. and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined US$114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of US$1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time US$1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four-year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21 percent to US$64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about US$19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market-share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non-union employees, retirees and dependents. 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. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. 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. KWIK SAVE: Reopens Twenty Stores and Reinstates Staff ----------------------------------------------------- Kwik Save Ltd. will reopen 20 of the 79 stores it closed and has asked redundant staff to return to work, reports say. Sarah Butler and Robert Lindsay of the Times Online said that the company, backed by property tycoon Brendan Murtagh, was hopeful on securing new financing but no deal was secured. Kwik Save is still working with KPMG on the matter. The company decided to re-open the stores after discussing with financial backers on the future of the business, Times Online relates. According to the Sunday Times, Kwik Save has until June 15, 2007, to secure new financing to avert bankruptcy, after lodging a notice of intention to file for administration at the Manchester courts. Kwik Save director Steve McArdle stated in a letter that employees will be paid for June 2007 in full, even if they did not work for part of that month. The staff are due to receive redundancy pay on June 23, 2007, reports say. "Usdaw has written to Kwik Save asking them tough questions about long-term job security for any of our members who may wish to take up their offer and how they intend to resolve supply chain problems to ensure there is enough stock on the shelves so the reopened stores can trade competitively," a spokesman for shopworkers union USDAW was quoted by Times Online as saying. Headquartered in Huddersfield, England, Kwik Save Ltd. -- http://www.kwiksave.co.uk/-- is a discount supermarket chain in the United Kingdom, which is owned and operated by Kwik Save Group Ltd. (fka BTTF Ltd.). As reported in the TCR-Europe on June 7, 2007, Kwik Save was seeking capital injection after suffering from a sharp decline in sales and mounting losses. The company reportedly had conflicts with its major suppliers due to payment delays, resulting to limited stocks on basic products. WARNER MUSIC: Confirms Possible Takeover Bid for EMI ---------------------------------------------------- Warner Music Group Corp. confirms that it continues actively to consider an offer for EMI Group plc, despite its bid being snubbed in favor of an equity firm. Warner stated in its Web site that such its offer would be pre-conditional on appropriate anti-trust clearances being obtained (or the pre-conditions waived) but not subject to any other pre-condition. A further announcement will be made in due course. EMI, the world's third largest music producer, have been subject to several takeover bids from Warner Music and other equity firms after it suffered losses due to a shrinking CD market and rampant online piracy. On May 21, EMI's board of directors accepted a GBP2.4 billion offer from Terra Firma Capital, subject to shareholder approval. However, Ethan Smith of the Wall Street Journal last week noted that Warner Music believes it could get EMI's recorded-music assets despite Terra Firma's offer. According to that report, Warner's executives and investors may counter Terra Firma's bid, though people close to the company think that Warner will not go much higher than its original GBP2.4 billion offer. WSJ adds that even if Warner acquired EMI, antitrust regulations would require the music firm to sell the publishing house. Two sources familiar with the matter had told Reuters that Warner Music was more likely than not to make an improved offer by early next week. Warner Music Bid Prior to the Terra Firma recommendation, Warner Music sweetened its bid to acquire EMI by offering to pay a break-up fee of between GBP50 million and GBP100 million in case the European Commission blocks its planned takeover of the U.K. music group, Dominic White of The Telegraph relates. On March 2, 2007, EMI rejected Warner Music's GBP2.1 billion non-binding takeover bid, saying that the price of 260 pence per share in cash for EMI is inadequate. According to Mr. White of The Telegraph, EMI also cited concerns that Warner had not offered to take any of the regulatory risk in relation to the takeover. Warner Music, The Telegraph says, indicated to EMI that the break-up fee would not add to its latest bid but would only be applied if the deal were blocked. Warner adds that it is not ready to make an unconditional offer for EMI as it could potentially struggle to find a buyer for the latter's recorded music assets, The Telegraph relates. Warner Music has begun due diligence after gaining access to EMI's books last week, Emiko Terazono and Andrew Edgecliffe- Johnson of The Financial Times report. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Europe on June 8, 2007, 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 * * *