/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070706.mbxT R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, July 6, 2007, Vol. 8, No. 133 Headlines A U S T R I A ALTENPFLEGEHEIM TRUPPE: Claims Registration Period Ends July 23 BAU-KONTRAKT LLC: Salzburg Court Orders Business Shutdown MAIR BAU: Claims Registration Period Ends July 23 MBR INSTALLATIONS: Claims Registration Period Ends July 23 PRASSL & STAMPF: Claims Registration Period Ends August 7 PRO MOTION: Vienna Court Orders Business Shutdown S & T LLC: Claims Registration Period Ends August 7 SIOTECH TECHNOLOGIE: Claims Registration Period Ends August 15 W&G LLC: Claims Registration Period Ends July 26 B E L G I U M COMPAGNIE EUROPEENNE: Chapter 15 Petition Summary F I N L A N D HILTON HOTELS: Inks US$26 Bln Merger Deal with Blackstone Group F R A N C E FIXED-LINK FINANCE: S&P Affirms Class C Notes at C G E R M A N Y DAIMLERCHRYSLER: Delays 2Q Earnings Report Due to Chrysler Sale DAIMLERCHRYSLER: S&P Junks Finance Arm's US$2 Billion Term Loan DAIMLERCHRYSLER AG: Fitch Puts Low-B Ratings on Finance Unit DAIMLERCHRYSLER: Fitch Assigns Low B Ratings to Chrysler LLC EQUITY FINANCE: Claims Registration Period Ends November 2 GEYER AG: Claims Registration Period Ends August 13 TIPTEL AG: Claims Registration Period Ends August 10 I R E L A N D DUNCANNON I: S&P Rates EUR20 Million Class E2 Notes at BB- RITCHIE (IRELAND): Taps Matheson Ormsby as Irish Counsel I T A L Y IMAX CORP: Nasdaq Okays Continued Common Stock Listing PARMALAT SPA: Court Allows Investors to Pursue Securities Action K A Z A K H S T A N ALUA OIL: Proof of Claim Deadline Slated for August 8 CASPIAN TRANS: Creditors Must File Claims August 8 GETMAN-1 LLP: Claims Filing Period Ends August 8 KOSTANAI OIL: Creditors' Claims Due on August 10 MOSTOOTRYAD Z LLP: Claims Registration Ends August 10 NURMET E LLP: Proof of Claim Deadline Slated for August 8 SIRIN LLP: Creditors Must File Claims August 8 SNABPRODORALSBYTCOMPANY LLP: Claims Filing Period Ends August 8 TALDYKORGAN ISKE: Creditors' Claims Due on August 10 TECHNOSNASTKA-7 LLP: Claims Registration Ends August 8 N E T H E R L A N D S CHEYNE CREDIT: Fitch Affirms EUR30 Million Class V Notes at BB IFCO SYSTEMS: S&P Raises Debt Rating to BB- on Recovery Analysis R U S S I A APATIT-STROY-SERVICE: Names P. Tarasov as Insolvency Manager CHEBARKULSKAYA OJSC: Bankruptcy Hearing Slated for Oct. 18 DOROZHNIK OJSC: Court Names A. Elypin as Insolvency Manager FLORA CJSC: Court Names A. Pasechnik as Insolvency Manager GALKINO LLC: Creditors Must File Claims by August 9 KAZANSKOYE CJSC: Omsk Bankruptcy Hearing Slated for Oct. 16 KHANTY-AVIA CJSC: Court Names S. Vinnik as Insolvency Manager LYSKOVSKOYE CJSC: Bankruptcy Hearing Slated for November 7 MARGARITA CJSC: Court Names A. Chingaev as Insolvency Manager OKTYABRSKIY CREAMERY: Names N. Volkov as Insolvency Manager PROMSVYAZBANK JSCB: Takes US$400 Mln Loan to Fund Foreign Ops RENAISSANCE CAPITAL: Fitch Assigns B- Rating to US$300 Mln Loan ROSNEFT OIL: Sells 50% of Tomskneft Unit to Vnesheconombank SABLE LLC: Court Names L. Abalakova as Insolvency Manager SITRONICS JSC: Unit Inks US$50 Million R&D Federal Contract TEMP OJSC: Omsk Bankruptcy Hearing Slated for Oct. 16 TRANSPORT BUILDING: Creditors Must File Claims by August 9 VICTORY OJSC: Names O. Khvoshnyanskiy as Insolvency Manager YUZHANKA LLC: Creditors Must File Claims by August 9 S P A I N IM PRESTAMOS: Moody's Rates EUR900,000 Class A-3 Notes at (P)Ba2 MILLS CORP: To Wind Up Affairs and Liquidate Assets on Aug. 1 S W I T Z E R L A N D A-Z KOPIERSERVICE: St. Gallen Court Closes Bankruptcy Process CASTIGLIONI CONSULTING: Liquidation Claims Due July 19 FINCHIP JSC: Creditors' Liquidation Claims Due July 23 HABERLE INVEST: Lucerne Court Closes Bankruptcy Proceedings INFINITI AG: Nidwalden Court Closes Bankruptcy Proceedings PELLCORN JSC: Bern Court Closes Bankruptcy Proceedings PHAM INFORMATIK: Zurich Court Closes Bankruptcy Proceedings PPSA – PRIVATE PARTNERS: Glarus Court Closes Bankruptcy Process SCHULZ-AUTOMATION LLC: Basel Court Closes Bankruptcy Proceedings SM MEDICAL: Creditors' Liquidation Claims Due July 19 STAHLTECH LLC: Creditors' Liquidation Claims Due July 31 STOLL REPRO-ATELIER: Bern Court Closes Bankruptcy Proceedings TAURUS CMBS: S&P Assigns BB Ratings to EUR2.5 Mln Class E Notes TB TECH: Creditors' Liquidation Claims Due July 27 VELTUR JSC: Creditors' Liquidation Claims Due July 19 T U R K E Y BANKPOZITIF KREDI: Raises US$150 Million in London Bond Issue U K R A I N E BORTNITSKY PRODUCTION-TRANSPORT: Creditors' Claims Due July 10 BUZNITSKY AGRICULTURAL: Creditors Must File Claims by July 8 GAL CLAYDITE: Proofs of Claim Deadline Set July 8 GELIOS LLC: Proofs of Claim Deadline Set July 10 KRASILOV ATP-16841: Creditors Must File Claims by July 8 KRYM RESTORATION: Proofs of Claim Deadline Set July 8 MACHINE OPERATOR: Creditors Must File Claims by July 8 OIL TRADE: Creditors Must File Claims by July 8 PHOTO DEVICE: Proofs of Claim Deadline Set July 8 SMIK OJSC: Proofs of Claim Deadline Set July 8 TANDEM-SERVICE LLC: Creditors Must File Claims by July 8 ZHYTOMIR-WOOD OJSC: Creditors Must File Claims by July 8 ZOLOTONOSHA FURNITURE: Proofs of Claim Deadline Set July 8 U N I T E D K I N G D O M CANWEST MEDIAWORKS: Debt Reduction Cues Moody's to Hold Ratings COMPAGNIE EUROPEENNE: Chapter 15 Petition Summary DRAGON FUTURES: Creditors' Meeting Slated for July 18 FORD MOTOR: U.S. Sales Fall 8.1% to 247,599 in June 2007 FUTURE-PEOPLE RECRUITMENT: Taps Administrators from BDO Stoy HEATING FINANCE: Moody's Cuts Rating to B2 on Weak Performance KWIK SAVE: Goes Into Administration; Transfers Remaining Stores LADBROKES PLC: Expects GBP45 Mln Profit from Telephone Betting MBN BOMFORD: Brings In Administrators from Deloitte & Touche METRONET BCV: S&P Cuts Debt Ratings to BB+ After Review METRONET SSL: S&P Cuts Debt Ratings to BB+; Remains on Watch Neg MORTGAGES PLC: Fitch Upgrades No. 7’s Class E Notes to BB+ PRIMUS TELECOMM: Concludes Sale of 22.5MM Shares of Common Stock SOLUTIA INC: Wants Monsanto & Retiree Settlement Pacts Okayed SOLUTIA INC: Bank of New York Balks at Amended Plan TRENT VALLEY: Appoints Joint Administrators from Vantis VIRGIN MEDIA: S&P Places All Ratings on Watch on Buyout Proposal W BAILEY: Brings In Deloitte & Touche to Administer Assets * BOOK REVIEW: Distressed Investment Banking: To the Abyss and Back ********* ============= A U S T R I A ============= ALTENPFLEGEHEIM TRUPPE: Claims Registration Period Ends July 23 --------------------------------------------------------------- Creditors owed money by KEG Altenpflegeheim Truppe (FN 136939g) have until July 23 to file written proofs of claim to court- appointed estate administrator Rudolf Pototschnig at: Dr. Rudolf Pototschnig Peraustrasse 31 9500 Villach Austria Tel: 04242/27835 Fax: 04242/26107-19 E-mail: rae.pototschnig-winkler@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on July 30 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Hall 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on June 5 (Bankr. Case No. 41 S 53/07b). BAU-KONTRAKT LLC: Salzburg Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Salzburg entered June 1 an order shutting down the business of LLC Bau-Kontrakt (FN 68402t). Court-appointed estate administrator Edwin Demoser recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Edwin Demoser Mohrstrasse 10 5020 Salzburg Austria Tel: 0662/823907 Fax: 0662/823907-21 E-mail: office@rademoser.at Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on May 23 (Bankr. Case No 23 S 41/07k). MAIR BAU: Claims Registration Period Ends July 23 ------------------------------------------------- Creditors owed money by LLC Mair Bau (FN 275623d) have until July 23 to file written proofs of claim to court-appointed estate administrator Clemens Richter at: Mag. Clemens Richter c/o Dr. Thomas Engelhart Esteplatz 4 1030 Vienna Austria Tel: 712 33 30 Fax: 712 33 30-30 E-mail: engelhart@csg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 6 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 1 (Bankr. Case No. 3 S 80/07w). Thomas Engelhart represents Mag. Richter in the bankruptcy proceedings. MBR INSTALLATIONS: Claims Registration Period Ends July 23 ---------------------------------------------------------- Creditors owed money by LLC MBR Installations (FN 210615d) have until July 23 to file written proofs of claim to court-appointed estate administrator Georg Freimueller at: Dr. Georg Freimueller c/o Dr. Erwin Senoner Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Aug. 6 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 1 (Bankr. Case No. 3 S 81/07t). Erwin Senoner represents Dr. Freimueller in the bankruptcy proceedings. PRASSL & STAMPF: Claims Registration Period Ends August 7 --------------------------------------------------------- Creditors owed money by LLC Prassl & Stampf (FN 189120v) have until Aug. 7 to file written proofs of claim to court-appointed estate administrator Horst Winkelmayr at: Mag. Horst Winkelmayr c/o Dr. Carl Knittl Porzellangasse 22A/7 1090 Vienna Austria Tel: 532 47 77 Fax: 532 47 77 50 E-mail: rae@kniwi.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:00 p.m. on Aug. 21 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 4 (Bankr. Case No. 6 S 55/07s). Carl Knittl represents Mag. Winkelmayr in the bankruptcy proceedings. PRO MOTION: Vienna Court Orders Business Shutdown ------------------------------------------------- The Trade Court of Vienna entered June 4 an order shutting down the business of LLC PRO MOTION (FN 33606x). Court-appointed estate administrator Georg Kahlig recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Georg Kahlig c/o Mag. Gerhard Stauder Siebensterngasse 42 1070 Vienna Austria Tel: 523 47 91 0 Fax: 523 47 91 33 E-mail: kahlig.partner@aon.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 29 (Bankr. Case No 6 S 65/07m). Gerhard Stauder represents Dr. Kahlig in the bankruptcy proceedings. S & T LLC: Claims Registration Period Ends August 7 --------------------------------------------------- Creditors owed money by LLC S & T (FN 188810m) have until Aug. 7 to file written proofs of claim to court-appointed estate administrator Birgit Linder at: Mag. Birgit Linder c/o Dr. Edmund Roehlich Heumarkt 9/I/11 1030 Vienna Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Aug. 21 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 6 (Bankr. Case No. 6 S 69/07z). Edmund Roehlich represents Mag. Linder in the bankruptcy proceedings. SIOTECH TECHNOLOGIE: Claims Registration Period Ends August 15 -------------------------------------------------------------- Creditors owed money by LLC SioTech Technologie (FN 247477m) have until Aug. 15 to file written proofs of claim to court- appointed estate administrator Alexander Knotek at: Dr. Alexander Knotek Pergerstr. 12 2500 Baden bei Vienna Austria Tel: 02252/43056-0 Fax: 022512/43056-20 E-mail: info@avia-law.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Aug. 28 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Kottingbrunn, Austria, the Debtor declared bankruptcy on June 5 (Bankr. Case No. 10 S 61/07k). W&G LLC: Claims Registration Period Ends July 26 ------------------------------------------------ Creditors owed money by LLC W&G (FN 83333z) have until July 26 to file written proofs of claim to court-appointed estate administrator Eva Riess at: Dr. Eva Riess c/o Mag. Nikolaus Vogt Zeltgasse 3/13 1080 Vienna Austria Tel: 402 57 01-0 Fax: 402 57 01 -57 E-mail: law@riess.co.at nikolaus.vogt@riess.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Aug. 9 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 4 (Bankr. Case No. is 5 S 67/07y). Nikolaus Vogt represents Dr. Riess in the bankruptcy proceedings. ============= B E L G I U M ============= COMPAGNIE EUROPEENNE: Chapter 15 Petition Summary ------------------------------------------------- Petitioner: Clive Paul Thomas Debtor: Compagnie Europeenne d'Assurances Industrielles S.A. 360 Boulevard du Souverain 1160 Brussels, Belgium 1 Stoke Road, Guildford, Surrey GU1 4HW United Kingdom Case No.: 07-12009 Type of Business: The Debtor was an insurance company underwriting a wide array of insurance and reinsurance business, including marine, transport and aviation, industrial risks, fire and allied perils, liability, casualty, private lines and commercial insurance between 1974 and 1994. On Dec. 31, 1994, the company ceased all underwriting activities and went into run-off. During the run-off process, the Debtor ceases underwriting new businesses and seek to determine, settle and pay all liquidated claims of their insureds as they arise. Depending on the type of business underwritten, the Debtor's run-off can take decades to complete. To shorten the run-off period and reduce administrative costs, the Debtor proposed a scheme of arrangement pursuant to section 425 of the Companies Act 1985 of England and Wales under English law. The Debtor is solvent and the Petitioner anticipates that all claims addressed by the Arrangement will be paid in full. During the Debtor's creditors' meetings, the requisite majorities of each class of creditors voted in favor of the Arrangement. Chapter 15 Petition Date: June 28, 2007 Court: Southern District of New York (Manhattan) Judge: Martin Glenn Petitioner's Counsel: Howard Seife, Esq. Chadbourne & Parke LLP 30 Rockefeller Plaza New York, NY 10112 Tel: (212) 408-5361 Fax: (212) 541-5369 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million ============= F I N L A N D ============= HILTON HOTELS: Inks US$26 Bln Merger Deal with Blackstone Group --------------------------------------------------------------- Hilton Hotels Corporation entered into a definitive merger agreement with The Blackstone Group's real estate and corporate private equity funds in an all-cash transaction valued at approximately US$26 billion. Under the terms of the agreement, Blackstone will acquire all the outstanding common stock of Hilton for US$47.50 per share. The price represents a premium of 40% over yesterday's closing stock price. Hilton's Board of Directors approved the transaction on July 3, 2007. It is anticipated that the transaction will close during the fourth quarter of 2007; completion is subject to the approval of Hilton's shareholders, as well as other customary closing conditions. A special shareholders meeting will be scheduled at a later date. The acquisition brings together a leading global hospitality company with Blackstone's extensive portfolio of hotels and resorts. Blackstone currently owns more than 100,000 hotel rooms in the U.S. and Europe, ranging from limited service properties such as La Quinta Inns and Suites to LXR Luxury Resorts and Hotels. The LXR collection includes such upscale properties as The Boulders Resort and Spa (Arizona), The El Conquistador Resort (Puerto Rico), The Boca Raton Resort and Club (Florida), The Golden Door Spa (San Diego), and The London NYC (New York). Blackstone's holdings complement Hilton's unparalleled family of brands, which include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf=Astoria Collection. Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees and customers. Over the last fifteen years, Blackstone has been the largest private investor in hospitality worldwide and it has a strong track record of reinvesting in its hotel properties. Blackstone has invested approximately US$1 billion in redevelopment capital in its LXR properties over the last three years; it has also grown the La Quinta brand by approximately 45% since its acquisition in January 2006. "Our priority has always been to maximize shareholder value," Stephen F. Bollenbach, Hilton's co-chairman and chief executive officer, said. "Our Board of Directors concluded that this transaction provides compelling value for our shareholders with a significant premium. We are delighted that a company with the resources and reputation of Blackstone fully appreciates the value inherent in our global presence, strong brands, industry leading marketing and technology programs, and unique portfolio of hotel properties." "It is hard to imagine a better strategic fit for us than Hilton with its world-class people, brands and network of hotels," Jonathan Gray, Senior Managing Director, Blackstone, commented. "This transaction is about building the premier global hospitality business. We are committed to investing in the company andworking with Hilton's outstanding owners and franchisees to continue to grow and enhance the business." "Blackstone's real estate and corporate private equity funds collaborated on the acquisition of Hilton, demonstrating Blackstone's unique ability to undertake such a transaction," Michael Chae, Senior Managing Director, Blackstone, added. "We look forward to working with Hilton's management team and employees to enhance the value of the company." Blackstone views Hilton as an important strategic investment; no significant divestitures are envisaged as a result of this transaction. The transaction is not contingent on the receipt of financing. Financing commitments have been provided by Bear Stearns, Bank of America, Deutsche Bank, Morgan Stanley and Goldman Sachs. These institutions also served as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone. UBS Investment Bank and Moelis Advisors acted as financial advisors to Hilton, and Sullivan & Cromwell LLP acted as legal advisor to Hilton. About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. =========== F R A N C E =========== FIXED-LINK FINANCE: S&P Affirms Class C Notes at C -------------------------------------------------- Standard & Poor's Ratings Services has raised its ratings on the class A and B structured notes issued by the special-purpose vehicle Fixed-Link Finance B.V., reflecting the implementation of the restructuring plan. The ratings that were raised are: -- The senior secured debt rating on the class A notes was raised to 'AAA' from 'BBB', and -- The senior subordinated debt rating on the class B notes was raised to 'AAA' from 'BBB-'. At the same time, the ratings were taken off CreditWatch where they had been placed with positive implications on June 20, 2007. The outlook on these ratings is stable. The junior subordinated debt rating on the class C notes was affirmed at 'C'. The outlook on these notes is negative. The 'AAA' insured ratings on the GBP232 million class G1 notes and EUR365 million class G2 notes issued by FLF were also affirmed. The 'AAA' insured ratings reflect the unconditional and irrevocable guarantee provided by MBIA Assurance S.A. (AAA/Stable/--) for the timely payment of scheduled interest and principal. FLF is a special-purpose vehicle related to Anglo-French Channel tunnel infrastructure operator Eurotunnel S.A. FLF's underlying assets consist of Eurotunnel's junior debt, at 51% of Tier 1, 32% of Tier 2, and 32% of Tier 3. "The rating actions on the class A, B, and C structured notes reflect the fact that FLF has received the sterling and euro payments from the safeguard plan with value June 28, 2007," said Standard & Poor's credit analyst Alexandre de Lestrange. Class A and class B are now wholly secured by cash. Pursuant to the cash management agreement, cash held by FLF must be invested by the cash manager (Citigroup) in eligible investments. The latter comprise sovereign debt, certain 'AAA' rated securities, and other unsubordinated securities issued by obligors with short-term debt obligations assigned at least an 'A-1' rating by Standard & Poor's and the equivalent rating by Moody's. The stable outlook on class A and class B reflects the expectation that cash, and earnings thereon, will enable FLF to service all of its debt and to repay its outstanding senior, senior subordinated, and guaranteed notes at par plus accrued interest in January 2009. The 'C' rating with a negative outlook on class C reflects the expectation that a default will ultimately occur in 2009, but that there should also be sufficient cash to service interest until then. In line with Eurotunnel's debt restructuring, as approved by the safeguard procedure, Eurotunnel's senior debt, Tier 1A, Tier 1, and Tier 2 was fully repaid in cash at 100% of par including accrued interest on June 28, 2007. The plan is to unwind FLF in 2009 when FLF bonds become freely pre-payable. ============= G E R M A N Y ============= DAIMLERCHRYSLER: Delays 2Q Earnings Report Due to Chrysler Sale --------------------------------------------------------------- The upcoming transfer of a majority interest in Chrysler Automotive and Chrysler Financial to Cerberus Capital Management and the upcoming closing of the transaction will result in substantial changes in DaimlerChrysler AG's financial reporting on the second quarter of 2007. Chrysler Automotive and Chrysler Financial will be shown in the second quarter financial statements as "discontinued operations.” For this reason, it will not be possible to publish the full interim report as planned on July 26, 2007. However, in order to report its key figures as soon as possible, on July 25, 2007, DaimlerChrysler will disclose unit sales, revenues and EBIT (earnings before interest and taxes) for the Mercedes Car Group and Truck Group divisions as well as for the Van, Bus, Other segment on the basis of preliminary figures. A conference call for journalists and analysts will be held on July 25, 2007, at 4.00 p.m. CEST. Originally, the second quarter 2007 interim report was scheduled to be released on July 26, 2007. It will not be possible to report Financial Services' figures separately for Chrysler and Daimler on July 25, 2007, because the accounting work of separating the business volume of Financial Services that is to be allocated to the Chrysler Group will not have been completed by then. DaimlerChrysler intends to publish its full interim report on the second quarter of 2007, including the financial statements, on August 29, 2007. 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: S&P Junks Finance Arm's US$2 Billion Term Loan --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating on Chrysler LLC. At the same time, Standard & Poor's assigned its 'B' long-term counterparty credit rating to Chrysler affiliate DaimlerChrysler Financial Services Americas LLC. The outlooks on both companies are negative. The linkage of the ratings on the two companies reflects S&P's consideration of DCFS as a captive finance company and is driven primarily by the strong business ties between the two entities. Standard & Poor's also assigned these bank loan and recovery ratings: -- A 'B+' issue rating, one notch higher than the Chrysler corporate credit rating, and a '2' recovery rating to Chrysler's proposed US$10 billion, first-lien term loan due 2014; -- A 'B-' issue rating, one notch below the Chrysler corporate credit rating, and a '5' recovery rating to Chrysler's proposed US$2 billion, second lien-term loan due 2014; -- A 'BB-' rating, two notches higher than the DCFS counterparty credit rating, and a '1' recovery rating to DCFS's proposed US$2 billon revolving credit facility and US$4 billion first-lien term loan; and -- A 'CCC+' rating, two notches below the DCFS counterparty credit rating, and a '6' recovery rating to DCFS's proposed US$2 billion second-lien term loan. Chrysler Holding LLC and Chrysler LLC are new legal entities being formed in connection with the acquisition of a controlling interest in the Chrysler automotive and financial businesses from parent DaimlerChrysler AG (DCX; BBB/Watch Pos/A-2) by an affiliate of Cerberus Capital Management L.P. (DCFS is an existing entity.) Upon consummation of the transaction, Cerberus will own approximately 80.1% of the equity interests in unrated Chrysler Holding, the indirect parent of Chrysler and direct parent of DCFS, with DCX retaining a 19.9% stake in Chrysler Holding. The sale is not expected to close until late July, and terms and conditions are subject to change. Accordingly, our ratings are preliminary and are subject to consummation of the transaction and receipt and review of final documentation. Following the close of the purchase, Auburn Hills, Mich.-based Chrysler will be a privately held company and is not expected to report financial results. The company is the fourth-largest automaker in North America, based on unit sales. The ratings on Chrysler reflect the wide-ranging challenges the company faces in North America, where the vast majority of its automotive operations are located. "The company relies more heavily on North American sales of light trucks than either of its other Michigan-based competitors," said Standard & Poor's credit analyst Robert Schulz. "While it benefits from having a strong presence in the more stable minivan segment and ownership of the iconic Jeep brand, the company is in the early stages of trying to turn around its North American operations," he continued. Although the company has been profitable in recent years, Chrysler has reported steep losses for the past three quarters, and we expect the company to remain unprofitable until into 2009. We are concerned about Chrysler's negative cash flow generation during 2007 and into 2008 as it works to turn around its financial performance, despite its more than adequate liquidity relative to near-term demands. Chrysler's management and strategies, aimed at returning to profitability by 2009, are not expected to change significantly under the new ownership, at least for the near term; rather, we expect Chrysler to continue executing the turnaround plan announced in February 2007. The plan calls for a return on sales of 2.5% in 2009. A crucial aspect of the plan is cost reductions. Chrysler has benefited from past restructurings and seemingly has less to accomplish this time. Based on past results, S&P believes Chrysler will be successful, at least in part, in reducing its cost structure. Still, although cost reductions may prove significant, they will take considerable time to fully materialize and even longer to translate into cash flow benefits. The outlooks on Chrysler and DCFS are negative. S&P's primary concern is Chrysler's need to return its North American automotive operations--the vast majority of the company's business--to profitability. The ratings could be lowered if setbacks, whether industry-related or Chrysler-specific, were to increase the company's use of cash, delay cash savings from the latest cost-cutting and restructuring efforts, or constrict liquidity. Chrysler would need to reverse its current financial and operational trends, and sustain such a reversal, before we would revise our outlooks to stable. 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. DAIMLERCHRYSLER AG: Fitch Puts Low-B Ratings on Finance Unit ------------------------------------------------------------ Fitch Ratings has initiated rating coverage on Daimler Chrysler Financial Services Americas LLC by assigning these ratings: -- Long-term Issuer Default Rating (IDR) 'BB-'; -- Short-term Issuer Default Rating (IDR) 'B'; -- US$4 billion first lien term loan 'BBB-'; -- US$2 billion second lien term loan 'BB'. The Rating Outlook for CFS is Stable. The assignment of CFS' IDR rating follows the expected acquisition of 80.1% of Chrysler Holding LLC, the parent of CFS by CG Acquisition Co, an affiliate of Cerberus Capital Management L.P. As part of the transaction, all intercompany debt from Daimler Chrysler AG to CFS will be repaid. The IDR rating of CFS reflects a one-notch lift over that of Chrysler LLC. This reflects the structural protections put in place to insulate CFS creditors from potential issues at Chrysler. CFS and Chrysler will operate as separate legal entities, with not cross-collateralization or guarantees with respect to each entity's financing. Relations and transactions between the two companies are governed under a master services agreement and each company will have a separate board of directors. While CFS primarily finances Chrysler dealers and their customers, Fitch believes the structural protections are adequate at the current ratings level, to recognize a ratings distinction in the IDR ratings between CFS and Chrysler. Nonetheless, Fitch will link the ratings of CFS to Chrysler, given that Fitch believes CFS performance is highly correlated with that of Chrysler. As such a change in ratings of Chrysler would result in a similar change to CFS. Aside from the strong relationship with Chrysler and relevant structural elements, Fitch regards CFS as a well-managed captive finance company. CFS has demonstrated consistent credit quality in its retail, lease, and wholesale automotive portfolios over an extended period. In addition, CFS is currently operating with very sound capital levels for the assigned ratings. Fitch also feels liquidity adequately supports the company's ongoing business needs. Fitch's concerns center on Chrysler's ability to navigate through a difficult operating environment in North America, industry trend towards 72-month loans, which increases loss severity, and the highly encumbered nature of CFS' balance sheet, which may limit financial flexibility. The ratings of the term loans are notched above the IDR reflecting their well-secured nature by generally highly liquid automotive finance related assets. 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. DAIMLERCHRYSLER: Fitch Assigns Low B Ratings to Chrysler LLC ------------------------------------------------------------ Fitch has initiated rating coverage on Chrysler LLC by assigning these ratings: -- Long-term Issuer Default Rating (IDR) 'B+'; -- US$10 billion first-lien loan 'BB+/RR1'; -- US$2 billion second-lien loan 'BB+/RR1'. The US$12 billion in senior secured financing will be raised following the pending acquisition of 80.1% of Chrysler's parent, Chrysler Holding LLC, by affiliates of Cerberus Capital Management, L.P. The 'RR1' Recovery Rating (RR) is based on Fitch's expectation of full recovery in the event of bankruptcy. The Rating Outlook is Stable. The rating reflects the severe competitive environment in the U.S. auto market, recent operating losses that are expected to continue through at least 2008, uncertainties regarding the extent of restructuring efforts and the pending UAW contract talks, and a deeply stressed supplier base. The Stable Outlook is based on Chrysler's market share performance since 2000, which has held up fairly well given the stiff competition and capacity expansion of transplant manufacturers as well as shifting buying patterns. The current product lineup across a number of segments, along with near-term new product introductions and a growing export market, should provide sufficient revenue support that will allow cost reductions to improve operating margins over the near term. Chrysler has made healthy improvements in its North American manufacturing operations since its merger with DaimlerChrysler AG (Daimler). Steady improvement in such key areas as capacity utilization, production efficiency and flexible manufacturing, when combined with the company's market share performance, have limited operating losses despite an uncompetitive cost structure. As a result, Chrysler's restructuring efforts are far less dramatic than at Ford and GM, with only a single assembly plant currently scheduled for closure. However, over-production by Chrysler in 2006, particularly in larger vehicle segments, created bloated inventories and problematic dealer relationships. Subsequent inventory reductions through the first quarter of 2007 have returned inventories to acceptable levels with an improved mix across product segments. Nevertheless, the inventory reductions were done at a heavy cost, resulting in higher incentives, higher fleet sales, operating losses, lower residual values and damage to brand image. Consolidated operating results also disproportionately suffered from volume and price deterioration in the key pickup segment due to a cyclical decline in the housing market, heavy incentives, and tough competition from new GM and Toyota products. By the time the Dodge Ram is refreshed, the current version may be the most dated product in the market, although two pending derivatives could enhance its presence in the segment over the near term. Over the longer term, the U.S. manufacturers appear well-positioned to hold or improve their competitive position in this market, and should benefit from any eventual upturn in construction activity. Although Chrysler remains heavily exposed to larger vehicle segments, the company has been proportionately less exposed to the steep decline in mid-size and large SUV's than Ford and GM. In the second half of 2007, key product introductions include the Dodge and Chrysler minivans, and the Jeep Liberty. Chrysler enjoys a solid market position in minivans, (although the segment remains in decline due to cannibalization by crossover vehicles), and could be poised to capture additional share as Ford and GM contract in this segment. Also supporting volumes and revenues in 2007 and into 2008 are the Jeep Wrangler, Dodge Charger and Dodge Caliber. Balanced strength across a range of new and existing products, including smaller vehicles, should allow production efficiencies achieved over the past several years to positively impact margins, despite continuing price erosion across the industry. However, large SUV products such as the Chrysler Aspen and Jeep Commander were introduced just as this segment was in steep decline. A primary support factor for the rating is the continuing relationship between Chrysler and Daimler. In addition to a 19.9% stake that Daimler will retain in Chrysler Holding LLC, various agreements will be put in place that will cement the operating and product development ties between the two companies. Areas of cooperation include axles, a common SUV platform, V-6 engine development and more. In particular, a technology sharing agreement provides Chrysler with rights to technologies that are currently in, or designated for Chrysler products. These agreements allow Chrysler to greatly leverage its R&D efforts and capitalize on Daimler's technologies. Chrysler's access to Daimler diesel technology could provide Chrysler with a competitive advantage over the long term as the U.S. market opens to diesel applications. Chrysler is also seeking to wring major cost reductions and efficiencies out of its production process, through parts commonality, platform-sharing, reductions in engine families, re-sourcing to low-cost countries, both alone and in partnership with Daimler. Although the synergies with Daimler have not met the levels or timeline first envisioned, efficiencies and cost savings will continue to accrue over the intermediate term. Hourly buyout programs, salaried employee reductions and an expected UAW health care deal (similar to agreements signed by the UAW with Ford and GM) provide confidence that near-term fixed cost savings are achievable. Although Chrysler has announced US$3 billion of capital spending related to powertrain products, capital spending will be reduced from heavy investment spending over the past several years. Although liquidity is very healthy, and more than sufficient to offset near-term operating losses and restructuring costs, Chrysler remains capital constrained and lacks the scale of competitors, particularly in terms of long-term product development. The agreement with Daimler represents a critical offset to this competitive disadvantage, but does not eliminate it. Legislative and regulatory issues, including higher CAFE requirements and emission standards, present long-term uncertainties and are likely to further increase the capital intensity of the industry. The significant revenue and margin pressures at Ford and GM will require significant changes to the UAW contract terms in order to reverse negative cash flows. Chrysler's fixed cost position are expected to benefit from changes in a number of areas including, outsourcing, use of non-union labor, work rules, job classifications, etc., through both the national contract and through continuing local agreements. Significant uncertainties remain around the results of the upcoming contract talks, and the risks of a labor disruption remain. Given its liquidity, operating profile and the size of its healthcare liabilities, Chrysler is uniquely positioned among the Detroit-3 in its capacity to finance a final solution to its health care liabilities (along the lines of a Goodyear-style deal). Chrysler is likely to be aggressive in pursuing such a transaction, but it is uncertain that a one-size-fits-all agreement can be reached between the UAW and Ford/GM/Chrysler within the timeline of the current talks. Chrysler's U.S. pension obligations are fully funded (on a U.S. GAAP basis), and are likely to improve further following 2007 YTD returns and an eventual re-measurement of liabilities that incorporate recent buyouts. Legacy health care liabilities remain an onerous burden on cash flow, but are likely to be reduced through an expected agreement with the UAW and through the hourly buyout program. A healthy percentage of workers accepting buyout packages are taking offers that exclude future health care and pension benefits. The 'RR1' rating is based primarily on a stress analysis of recoveries valuing Chrysler on a going-concern basis. Fitch also analyzed recoveries against physical assets (incorporating limitations imposed by a borrowing base) and in terms of the market price implied in the current transaction. Fitch's methodology incorporated changes to assumptions on Chrysler's cost-structure, margins and other liabilities that would impact going-concern valuations under a bankruptcy scenario. Recovery values do not benefit from any values associated with Chrysler Financial, given the separate ownership structures. 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. EQUITY FINANCE: Claims Registration Period Ends November 2 ---------------------------------------------------------- Creditors of Equity Finance AG have until Nov. 2 to register their claims with court-appointed insolvency manager Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Dr. Georg Bernsau Zeilweg 42 60439 Frankfurt (Main) Germany Tel: 069/963761-130 Fax: 069/963761-145 The District Court of Frankfurt (Main) opened bankruptcy proceedings against Equity Finance AG on June 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Equity Finance AG Lyoner Strasse 34 60528 Frankfurt (Main) Germany GEYER AG: Claims Registration Period Ends August 13 --------------------------------------------------- Creditors of Geyer AG have until Aug. 13 to register their claims with court-appointed insolvency manager Steffen Goede. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 24, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuremberg Meeting Hall 109/I Flaschenhofstr. 35 Nuremberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Goede Peuntgasse 3 90402 Nuremberg Germany Tel: 0911/27980-0 Fax: 0911/27980-90 The District Court of Nuremberg opened bankruptcy proceedings against Geyer AG on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Geyer AG Attn: Friedrich Kreigenfeld, Manager Nimrodstrasse 10 90441 Nuremberg Germany TIPTEL AG: Claims Registration Period Ends August 10 ---------------------------------------------------- Creditors of TIPTEL AG have until Aug. 10 to register their claims with court-appointed insolvency manager Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Aug. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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. Frank Kebekus Carl-Theodor-Str. 1 40213 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against TIPTEL AG on July 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TIPTEL AG Halskestrasse 1 40880 Ratingen Germany ============= I R E L A N D ============= DUNCANNON I: S&P Rates EUR20 Million Class E2 Notes at BB- ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR730 million senior and mezzanine deferrable-interest floating-rate notes to be issued by Duncannon CRE CDO I PLC, a special purpose entity incorporated in Ireland. At the same time, Duncannon CRE CDO I will issue EUR80 million unrated subordinated notes. The transaction is a commercial real estate collateralized debt obligation and has been established to create a term matched funding solution for Fortress rather than an arbitrage vehicle. This will be the first CRE CDO to be managed by Fortress. Duncannon CRE CDO I will issue 11 classes of rated notes that, along with the unrated subordinated notes (to be retained by Eurocastle Investment Ltd.), will be used to pay off existing indebtedness and purchase additional collateral. Eurocastle is a listed property company managed by Fortress. The issuer must have purchased or entered into agreements to purchase assets comprising 70% of the targeted par amount of EUR800 million by the closing date. The balance will be acquired in the 12 months after the closing date. The issuer currently expects this amount to be higher at closing, at approximately 95%. Under the terms of the transaction, Fortress as portfolio manager must seek confirmation of the ratings from Standard & Poor's once the target portfolio amount is acquired. The portfolio will be backed by a diversified portfolio of pan- European commercial real estate assets, including CMBS securities, B-notes, real-estate-backed corporate loans, and whole business securitizations. The assets will be denominated in various currencies, but the foreign exchange risk will be mitigated through perfect asset swaps. Ratings List Duncannon CRE CDO I PLC EUR810 Million Senior And Mezzanine Deferrable-Interest Floating-Rate Notes Prelim. Prelim. Amount Class Rating (Mil. EUR) ----- ------ -------- X AAA 10 RCF AAA 150 A AAA 370 B AA 40 C1 (deferrable) A 40 C2 (deferrable) A- 20 D1 (deferrable) BBB+ 20 D2 (deferrable) BBB 20 D3 (deferrable) BBB- 20 E1 (deferrable) BB 20 E2 (deferrable) BB- 20 Subordinated NR 80 NR -- Not rated. RITCHIE (IRELAND): Taps Matheson Ormsby as Irish Counsel -------------------------------------------------------- Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Matheson Ormsby Prentice, Solicitors, as its Irish counsel. The Debtors expect Matheson Ormsby to assist them in executing their duties as debtors-in-possession and in implementing the reorganization of the Debtors' affairs with respect to matters of Irish Law. The Debtors agreed to pay the firm's professionals at these hourly rates: Tony O'Grady EUR485 Julie Murphy-O'Connor EUR425 Libby Garvey EUR485 Anthony Walsh EUR550 William Flynn EUR485 Aidan O'Connell EUR225 Prior to their bankruptcy filing, the Debtors paid Matheson Ormsby a total of EUR118,158 for services rendered and costs incurred. The Debtors also paid Matheson Ormsby a EUR20,000 retainer. To the best of the Debtors' knowledge, the firm neither represents nor holds any interest materially adverse to the estate or any party-in-interest and is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Based in Dublin, Ireland, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. -- http://www.ritchiecapital.com/-- are funds of hedge fund group Ritchie Capital Management. The Debtors were formed as special purpose vehicles to invest in life insurance policies in the life settlement market. The Debtors filed for Chapter 11 protection on June 20, 2007 (Bankr. S.D.N.Y. Case Nos. 07-11906 and 07-11907). When the Debtors filed for bankruptcy, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a Chapter 11 plan expires on Oct. 18, 2007. ========= I T A L Y ========= IMAX CORP: Nasdaq Okays Continued Common Stock Listing ------------------------------------------------------ The Nasdaq Listing Qualifications Panel has granted IMAX Corporation's request for continued listing of its shares on The Nasdaq Stock Market. The decision is subject to the condition that the company files its Form 10-K for the fiscal year ended Dec. 31, 2006, its Form 10-Q for the fiscal quarter ended March 31, 2007, and all required restatements, on or before Oct. 1, 2007, and that it continue to meet all other Nasdaq listing requirements. The company expects to make these filings shortly. In March 2007, the company disclosed that it would delay filing its financial statements due to the discovery of certain accounting errors and subsequently broadened its accounting review to include certain other accounting matters based on comments received by the company from the staff of the U.S. Securities and Exchange Commission and the Ontario Securities Commission. On April 12, 2007 and May 14, 2007, Nasdaq sent the company letters indicating that it was not in compliance with Marketplace Rule/4310(c)(14), which requires timely filing of periodic reports with the SEC for continued listing of the company's common shares, and that company's common shares were subject to delisting from The NASDAQ Stock Market. On June 29, 2007, the company has substantially addressed the above-referenced comments from the SEC and OSC by revising its accounting policy with regard to revenue recognition for theatre systems, and that it expects to file its financial statements. The Panel noted in its decision that the company's filing delay does not appear to have been the result of misconduct or malfeasance, and that the company was working diligently to complete its reporting. About IMAX Corp. Headquartered jointly in New York City and Toronto, Canada, IMAX Corporation -- http://www.imax.com/-- (NASDAQ:IMAX; TSX: IMX) is an entertainment technology company, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully- integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * As reported in the Troubled Company Reporter on July 4, 2007, Moody's Investors Service downgraded the corporate family rating of IMAX Corporation to Caa1 from B3 and downgraded the rating on its senior unsecured bonds to Caa2 from Caa1. Moody's also downgraded the probability of default rating to Caa1 from B3. Ratings remain under review for further downgrade. PARMALAT SPA: Court Allows Investors to Pursue Securities Action ---------------------------------------------------------------- The Honorable Lewis Kaplan of the U.S. District Court for the Southern District of New York, the federal judge overseeing the securities class action against Italian dairy giant Parmalat Finanziaria S.p.A., has soundly rejected the company's motion to dismiss the case brought by investors. The investor class seeks to recover billions of dollars in claims against Parmalat tied to a massive and complex accounting fraud that led to its bankruptcy in 2003. Following a corporate reorganization, the management of so- called "New Parmalat" had argued that because the alleged fraud had been committed by the previous entity -- "Old Parmalat" – investor claims brought in 2004 were invalid. Dismissing that argument, Judge Kaplan issued a ruling on June 28, 2007 that under Italian law, New Parmalat inherited the liabilities of Old Parmalat. Judge Kaplan also rejected New Parmalat's arguments that investor claims were barred by the statute of limitations or because certain lead plaintiffs had asserted claims in Parmalat's reorganization proceedings in Italy. In his decision, Judge Kaplan explained, "New Parmalat asserts that it 'did not assume the pre-insolvency acts of the Foreign Debtors.' But the issue is not the assumption of acts. It is the assumption of liability for those acts." "New Parmalat suggests that it is being asked to bear more responsibility than it agreed to undertake. But it is not ... they (the Plaintiffs) seek only to hold New Parmalat to the terms of the Concordato," contends Judge Kaplan. The plaintiffs are represented by co-lead counsel Grant & Eisenhofer P.A., Cohen, Milstein, Hausfeld & Toll, P.L.L.C., and Spector, Roseman & Kodroff, P.C. According to Stuart Grant of Grant & Eisenhofer, the decision is a major milestone in this sprawling litigation, which extends to Parmalat's former auditors and investment banks as well as the company's previous management and board of directors. "As Parmalat has admitted that its former top officers engaged in fraudulent conduct and that its financial statements were materially misstated, New Parmalat appears to have no defense left to our clients' claims. Judge Kaplan's decision paves the way for a substantial recovery against New Parmalat under the terms of the Concordato," Mr. Grant said. "This latest decision appears to knock out all the legal defenses that New Parmalat has raised against investors. Since it has no factual defense against our clients' claims, as the company has already admitted that the fraud occurred, it seems the only thing remaining is determining the level of judgment against Parmalat," said Mr. Grant. About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. =================== K A Z A K H S T A N =================== ALUA OIL: Proof of Claim Deadline Slated for August 8 ----------------------------------------------------- LLP Alua Oil Products has declared insolvency. Creditors have until Aug. 8 to submit written proofs of claims to: LLP Alua Oil Products Djandosov Str. 35a-27 Almaty Kazakhstan CASPIAN TRANS: Creditors Must File Claims August 8 -------------------------------------------------- LLP Caspian Trans Group has declared insolvency. Creditors have until Aug. 8 to submit written proofs of claims to: LLP Caspian Trans Group Alihanov Str. 37-101 Karaganda Kazakhstan GETMAN-1 LLP: Claims Filing Period Ends August 8 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola has declared LLP Getman-1 insolvent. Creditors have until Aug. 8 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 KOSTANAI OIL: Creditors' Claims Due on August 10 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Kostanai Oil Company insolvent. Creditors have until Aug. 10 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Kozybayev Str. 107-126 Kostanai Kazakhstan MOSTOOTRYAD Z LLP: Claims Registration Ends August 10 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Mostootryad Z insolvent. Creditors have until Aug. 10 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Kozybayev Str. 107-126 Kostanai Kazakhstan NURMET E LLP: Proof of Claim Deadline Slated for August 8 --------------------------------------------------------- The specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Nurmet E insolvent. Creditors have until Aug. 8 to submit written proofs of claims to: The specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (3252) 52-02-36 8 (3252) 52-19-32 SIRIN LLP: Creditors Must File Claims August 8 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Sirin insolvent. Creditors have until Aug. 8 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 SNABPRODORALSBYTCOMPANY LLP: Claims Filing Period Ends August 8 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Snabprodoralsbytcompany insolvent. Creditors have until Aug. 8 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Office 409 Dostyk-Drujba ave. 215 Uralsk West Kazakhstan Kazakhstan TALDYKORGAN ISKE: Creditors' Claims Due on August 10 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Taldykorgan Iske Set insolvent. Creditors have until Aug. 10 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 54-10 Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-28-49 8 701 487 22-65 TECHNOSNASTKA-7 LLP: Claims Registration Ends August 8 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Technosnastka-7 insolvent. Creditors have until Aug. 8 to submit written proofs of claims to: The specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (3252) 52-02-36 8 (3252) 52-19-32 ===================== N E T H E R L A N D S ===================== CHEYNE CREDIT: Fitch Affirms EUR30 Million Class V Notes at BB -------------------------------------------------------------- Fitch has affirmed Cheyne Credit Opportunity CDO I B.V.'s notes due 2021: -- EUR552 million Class IA F: 'AAA' -- EUR138 million Class IB: 'AAA' -- EUR40 million Class II: 'AA' -- EUR40 million Class III: 'A' -- EUR60 million Class IV: 'BBB' -- EUR30 million Class V: 'BB' The affirmations reflect both the steady performance of the portfolio since the transaction closed in March 2006 and the results of the over-collateralization and interest coverage tests, which continue to exceed their minimum levels by a substantial margin. The over-collateralization levels have steadily fallen since close, but this is attributable to the issuance of further Class IA F funded notes, which effectively dilutes the collateralization from the subordinated notes. Owing to the aforementioned margins over their minimum levels, this is not a cause for immediate concern. Despite the presence of Schieder Mobel in the portfolio, which defaulted in March 2007, the remaining portfolio's weighted average rating factor is largely unchanged from close, at 27.2 (equivalent to a rating of 'B') compared to the closing level of 26.4 ('B'/'B+'). The WARF remains well within the limits set by the Fitch Test Matrix for the current weighted average spread (3%) and recovery rates (68.8%). IFCO SYSTEMS: S&P Raises Debt Rating to BB- on Recovery Analysis ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its senior secured debt rating on IFCO Systems N.V., the Netherlands-based provider of reusable plastic containers and pallet services, to 'BB-' from 'B', the same level as the corporate credit rating (BB- /Stable/--). At the same time, S&P assigned a recovery rating of '4' to the EUR110 million notes due 2010, indicating the expectation of average (30%-50%) recovery in the event of a payment default. Recovery Analysis IFCO Systems group has the following debt facilities: -- EUR110 million senior secured notes maturing in 2010. -- EUR44 million working capital facility at the European subsidiaries' level (not rated). Senior secured notes are lent at the holding company level. The security package for the notes primarily comprises of first priority interest over certain tangible (other than property) and intangible assets of the subsidiaries' guarantors, other than IFCO Systems GmbH (and its European subsidiaries); guarantees from subsidiaries' guarantors (other than IFCO Systems GmbH and its European subsidiaries); and share pledges over the operating subsidiaries of the group. This is considered a S&Pak package as less than 25% of assets is subject to security. All funded liabilities sitting in the European operating subsidiaries therefore rank structurally senior to the notes. Furthermore, the limited asset security could mean that a significant portion of any debt claim would rank pari passu with unsecured creditors of the guarantors. The majority of IFCO's activities are based in the U.S., Germany, Spain, and the U.K. All of these have fairly favorable insolvency regimes for secured creditors. The senior secured notes have relatively standard documentation for an issue of this nature, with a bullet repayment profile and standard package of covenants. Financial covenants include an incurrence test based on interest cover, while non-financial covenants include limitations on additional indebtedness, disposals, M&A, and dividend payments. To calculate recoveries, Standard & Poor's has simulated a default scenario. Given IFCO's leading market position, S&P used an enterprise valuation approach because S&P believe that lenders would likely achieve greater value through the reorganization or sale of the business as a going concern than through the liquidation of assets. Standard & Poor's simulated default scenario assumes a potential combination of the following factors: -- Decline in revenue in 2008-2010, mainly driven by the loss of key customers in the RPC sector. -- Strong competition, leading to price pressure and lower profit margins. S&P have also assumed a successful refinancing of the working capital facility at maturity. Under our simulated scenario, a default is unlikely to occur before 2010, the maturity date of the notes. S&P have valued the business using a combination of discounted cash flow and market multiple approaches. At the point of default, S&P have assumed that the working capital facility would be fully drawn. At default, S&P estimates that EBITDA will be about US$70 million. S&P’s estimate of the stressed enterprise value at default is about US$400 million. After deducting priority liabilities comprising enforcement costs, priority debt facilities and structurally senior trade liabilities, coverage is expected to be in the 30%-50% range. =========== R U S S I A =========== APATIT-STROY-SERVICE: Names P. Tarasov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Murmansk appointed P. Tarasov as Insolvency Manager for OJSC Apatit-Stroy-Service. He can be reached at: P. Tarasov Post User Box 19 OPS-100 170100 Tver Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A42-468/2007. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: OJSC Apatit-Stroy-Service Stroitelej 8 Apatity Murmansk Russia CHEBARKULSKAYA OJSC: Bankruptcy Hearing Slated for Oct. 18 ---------------------------------------------------------- The Arbitration Court of Chelyabinsk will convene at 3:00 p.m. on Oct. 18 to hear the bankruptcy supervision procedure on OJSC Chebarkulskaya Factory of Confectionery. The case is docketed under Case No. A76-4691/2007-60-55. The Temporary Insolvency Manager is: V. Yusov Post User Box 6426 454071 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: OJSC Chebarkulskaya Factory of Confectionery Kujbysheva Str. 109 Chebarkul 456440 Chelyabinsk Russia DOROZHNIK OJSC: Court Names A. Elypin as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Krasnodar appointed A. Elypin as Insolvency Manager for OJSC Dorozhnik. He can be reached at: A. Elypin Room 230 Severnaya Str. 279 350020 Krasnodar Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-4265/2007-27/155-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Region Russia The Debtor can be reached at: OJSC Dorozhnik Neftepromyslovaya Str. 1 Abinsk Krasnodar Russia FLORA CJSC: Court Names A. Pasechnik as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Bryansk appointed A. Pasechnik as Insolvency Manager for CJSC Flora. He can be reached at: A. Pasechnik 14 Office 35 Ulyanova Str. 241035 Bryansk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-1764/07-26. The Court is located at: The Arbitration Court of Bryansk Room 602 Trudovoy Per. 5 Bryansk Region Russia The Debtor can be reached at: CJSC Flora Bryanskaya Str. Pochep Bryansk Russia GALKINO LLC: Creditors Must File Claims by August 9 --------------------------------------------------- Creditors of LLC Galkino (TIN 4524006078) have until Aug. 9 to submit proofs of claim to: S. Yurov Insolvency Manager Post User Box 5887 644058 Russia The Arbitration Court of Kurgan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34-7640/2006. The Debtor can be reached at: LLC Galkino Gogolya Str. 141 Shumikha 641100 Kurgan Russia KAZANSKOYE CJSC: Omsk Bankruptcy Hearing Slated for Oct. 16 ----------------------------------------------------------- The Arbitration Court of Omsk will convene on Oct. 16 to hear the bankruptcy supervision procedure on CJSC Kazanskoye (TIN 5519000040). The case is docketed under Case No. A46-3411/2007. The Temporary Insolvency Manager is: N. Utochenko Apartment 312 Mira Pr. 106A Omsk Russia The Debtor can be reached at: CJSC Kazanskoye Lenina Str. 49 Kazanka Lyubinskiy Omsk Russia KHANTY-AVIA CJSC: Court Names S. Vinnik as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy appointed S. Vinnik as Insolvency Manager for CJSC Khanty-Avia. He can be reached at: S. Vinnik Post User Box 2699 Central Post Office 644099 Omsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A75-3675/2006. The Court is located at: The Arbitration Court of Khanty-Mansiyskiy Lenina Str. 54/1 Khanty-Mansiysk Autonomous Region Russia The Debtor can be reached at: CJSC Khanty-Avia Mira Str. 115 Khanty-Mansiysk Khanty-Mansiyskiy Russia LYSKOVSKOYE CJSC: Bankruptcy Hearing Slated for November 7 ---------------------------------------------------------- The Arbitration Court of Chelyabinsk will convene on Nov. 7 to hear the bankruptcy supervision procedure on CJSC Lyskovskoye. The case is docketed under Case No. A76-3674/2007-36-57. N. Volkov Temporary Insolvency Manager 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 Lyskovskoye Oktyabrskiy Chelyabinsk Russia MARGARITA CJSC: Court Names A. Chingaev as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Omsk appointed A. Chingaev as Insolvency Manager for CJSC Margarita (TIN 5525009690). He can be reached at: A. Chingaev 18 km Moskovskoye Shosse 443013 Samara Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-2262/2007. The Debtor can be reached at: CJSC Margarita Transsibirskaya Str. 2 644103 Omsk Russia OKTYABRSKIY CREAMERY: Names N. Volkov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Chelyabinsk appointed N. Volkov as Insolvency Manager for OJSC Oktyabrskiy Creamery. He can be reached at: N. Volkov Korabelnaya Str. 8-136 454045 Chelyabinsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-29332/2006-265. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: OJSC Oktyabrskiy Creamery Oktyabrskoe Oktyabrskij Chelyabinsk Russia PROMSVYAZBANK JSCB: Takes US$400 Mln Loan to Fund Foreign Ops ------------------------------------------------------------- JSCB Promsvyazbank has availed of a US$400-million syndicated loan to finance its customers' foreign trade transactions, RIA Novosti reports. "The loan includes two equal tranches with maturity in 12 and 18 months," Promsvyazbank said. "The first tranche was raised at Libor+0.6% and the other at Libor 0.7%." The loan's managers are: -- Commerzbank AG, -- WestLB AG, -- Societe Generale Group Sa, -- Sumitomo Mitsui Banking Corp. Europe Ltd, -- WestLB London Branch, and -- ICICI Bank. According to RIA Novosti, Promsvyazbank has completed US$825 million in three syndicated transactions this year. About Promsvyazbank Headquartered in Moscow, Russia, JSCB Promsvyazbank -- http://www.psbank.ru/eng/-- engages in lending business, project finance, leasing regional projects expanding its presence in the financial markets. * * * As reported in the TCR-Europe on May 9, Fitch Ratings revised Russia-based Promsvyazbank's Outlook to Stable from Positive. The bank's ratings are affirmed at Issuer Default 'B+', Short- term 'B', Support '5' and Individual 'D'. Promsvyasbank carries Ba3 long-term foreign currency deposit and debt ratings and a D- financial strength rating. Outlook is positive. Promsvyasbank carries Ba3 long-term foreign currency deposit and debt ratings and a D- financial strength rating from Moody's. Outlook is positive. The bank's US$125 million 8.75% senior unsecured loan participation notes also carry a Ba3 long-term foreign currency debt while it US$200 million 9.625% subordinated loan participation notes issued by PSB Finance S.A. carry a B1 long- term foreign currency debt rating. Promsvyazbank also carries 'B/C' long- and short-term counterparty credit ratings from Standard & Poor's. The outlook is positive. RENAISSANCE CAPITAL: Fitch Assigns B- Rating to US$300 Mln Loan --------------------------------------------------------------- Fitch Ratings has assigned Renaissance Consumer Funding Limited's US$300 million 9.5% issue of limited recourse loan participation notes final ratings of Recovery 'RR4' and Long- term 'B-'. The notes are due in June 2010. The notes are to be used solely for financing a loan to CB Renaissance Capital, a bank incorporated under the laws of Russia. CBRC is rated Long-term Issuer Default 'B-', Short-term IDR 'B', Support '5', Individual 'D/E' and National Long-term 'BB(rus)'. It has a Support Rating Floor of 'No Floor'. The Outlooks on the Long-term IDR and National Long-term ratings are Stable. The notes are issued under CBRC's US$1.5 billion loan participation notes program, rated Long-term 'B-' and Short-term 'B', which allows for multi-currency borrowings and for various tenors. The loan agreement contains a 'negative pledge' clause, which allows for a degree of securitization by CBRC. In the event of any securitization, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. The structure of the deal as well as other covenants (mergers and disposals, financial covenants, etc) remains unchanged. CBRC is a specialist consumer finance bank, which has been fully operational since 2004. The bank was the 106th-largest bank in Russia by total assets at end-2006 and within the top 25 consumer lenders at end-2006. It has a network of 49 representative offices, 11 branch offices in Moscow and the Moscow region, nine loan and cash offices and over 3,000 active points-of-sale. CBRC is indirectly controlled by Renaissance Holdings Management Limited; Stephen Jennings, the CEO of Renaissance Group, is one of the largest individual stakeholders in RHML. ROSNEFT OIL: Sells 50% of Tomskneft Unit to Vnesheconombank ----------------------------------------------------------- OAO Rosneft Oil Co. has agreed to sell 50% of Tomskneft to Vnesheconombank, which is contemplating rotation of key management positions and joint decision taking on key development issues, and subject to receipt of required corporate approvals. Upon completion of the transaction, Rosneft expects to account for Tomskneft on an equity basis in its U.S. GAAP financial statements. Proceeds from the sale of 50% of Tomskneft has enabled Rosneft to complete recent announced acquisitions without raising any further debt. Rosneft will continue to reduce debt through integration of recently acquired assets, improved operating performance, enhanced downstream margins, and potential asset sales. The company is targeting a reduction in leverage to 1x Debt/EBITDA and less than 30% gearing by 2010. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. SABLE LLC: Court Names L. Abalakova as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Chelyabinsk appointed L. Abalakova as Insolvency Manager for LLC Hunting Salon Sable. She can be reached at: L. Abalakova Apartment 24 Sovetskaya Str. 205/1 Magnitogorsk 455051 Chelyabinsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-2269/2007-36-50. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: LLC Hunting Salon Sable Sovetskaya Str. 160 Magnitogorsk Chelyabinsk Russia SITRONICS JSC: Unit Inks US$50 Million R&D Federal Contract ----------------------------------------------------------- The OAO NIIME & Mikron' Microelectronic Solutions division subsidiary of JSC Sitronics has won fifteen open tenders to develop electronic components for the Federal Agency of Industry. The research and development contracts are expected to be worth approximately US$50 million in revenues to Sitronics. The R&D projects are part of the Federal program to develop a “National Technological Base”, and are expected to be completed in 2009. OAO NIIME & Mikron is also currently participating in a number of other R&D project tenders by the Russian Federation's Ministry for Industry and Energy. “Our success in wining these mandates demonstrates the quality and efficiency of our R&D capability, as well as our proven track record of executing such contracts. We reinvest up to 20% of our revenues in research and development and are committed to the advancement of existing microelectronic technologies and the development of the microelectronic industry as a whole,” Gennady Krasnikov, Head of the SITRONICS Microelectronic Solutions division, commented. About Sitronics Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) -- http://www.sitronics.com/-- provides telecommunications solutions, IT solutions and microelectronic solutions in the CIS region with a rapidly growing presence in other EEMEA markets. Sistema controls the company. For the 12 months ended Dec. 31, 2006, Sitronics' revenues and OIBDA were US$1.61 billion and US$183.6 million, respectively. As of Dec. 31, 2006, SITRONICS had total assets of US$1.65 billion. * * * As of May 24, 2007, JSC Sitronics carries Fitch's B- Long-Term Issuer Default Rating. TEMP OJSC: Omsk Bankruptcy Hearing Slated for Oct. 16 ----------------------------------------------------- The Arbitration Court of Omsk will convene at 10:20 a.m. on Oct. 16 to hear the bankruptcy supervision procedure on OJSC Temp. The case is docketed under Case No. A 46-3447/2007. The Temporary Insolvency Manager is: A. Vaysberg Sibirskaya Str. 47 644082 Omsk Russia The Debtor can be reached at: OJSC Temp 22 Partsyezda Str. 98 644105 Omsk Russia TRANSPORT BUILDING: Creditors Must File Claims by August 9 ---------------------------------------------------------- Creditors of OJSC Transport Building have until Aug. 9 to submit proofs of claim to: N. Semashko Insolvency Manager Post User Box 26 GUPS Labytnangi 629400 Yamalo-Nenetskiy Russia The Arbitration Court of Yamalo-Nenetskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A81-170/2007. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Russia The Debtor can be reached at: OJSC Transport Building SMP-700 Zaozernyj Novyj Urengoj 629300 Yamalo-Nenetskiy Russia VICTORY OJSC: Names O. Khvoshnyanskiy as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Chelyabinsk appointed O. Khvoshnyanskiy as Insolvency Manager for OJSC Victory. He can be reached at: O. Khvoshnyanskiy Room 5 Kirova Str. 118 454000 Chelyabinsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-6365/03-48-207. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Region Russia The Debtor can be reached at: O. Khvoshnyanskiy Room 5 Kirova Str. 118 454000 Chelyabinsk Russia YUZHANKA LLC: Creditors Must File Claims by August 9 ---------------------------------------------------- Creditors of LLC Yuzhanka have until Aug. 9 to submit proofs of claim to: A. Budelev Temporary Insolvency Manager Bratskaya Str. 11/1 644020 Omsk Russia The Arbitration Court of Omsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A46-1516/2007. The Debtor can be reached at: LLC Yuzhanka Proletarskiy Per. 61 Russkaya–Polyana 646780 Omsk Russia ========= S P A I N ========= IM PRESTAMOS: Moody's Rates EUR900,000 Class A-3 Notes at (P)Ba2 ---------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to three classes of Notes issued by IM Prestamos Fondos Cedulas, FTA. Moody's also assigned a provisional rating to the liquidity line to be made available to the Fondo. The provisional ratings assigned are: -- (P)Aaa to the EUR344.1 Million Class A due 2022; -- (P)Baa2 to the EUR6.9 Million Class B due 2022; -- (P)Ba2 to the EUR0.9 Million Class A-3 due 2022; and -- (P)Aaa to the EUR40 Million Liquidity Facility. The provisional ratings of the Notes address the expected loss posed to investors by the legal final maturity. The provisional rating of the Liquidity Facility addresses the risk posed to Banco Santander Central Hispano, S.A. on an expected loss basis arising from the Issuer's inability to honor its obligations under the Liquidity Facility agreement. The Liquidity Facility rating does not address potential losses in relation to any market risk associated with the Liquidity Facility agreement. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction. Upon a conclusive review of the final versions of all the documents and legal opinions, Moody's will endeavor to assign a definitive rating to the transaction. A definitive rating may differ from a provisional rating. IM Prestamos Fondos Cedulas, FTA will issue the three classes of notes, the proceeds of which will be used: (1) to purchase a static portfolio of subordinated loans (the "Securitized Subordinated Loans") which were created to finance the reserve funds of underlying structured Cedulas transactions (the "Underlying Reserve Funds"), (2) to fund the Fondo's own reserve fund (the "Top-Level Reserve Fund"), and (3) to pay the Fondo's upfront costs. The Fondo will acquire 79 Securitized Subordinated Loans granted by 13 financial institutions to 14 different underlying structured Cedulas transactions being exposed on aggregate to 45 financial institutions. MILLS CORP: To Wind Up Affairs and Liquidate Assets on Aug. 1 ------------------------------------------------------------- The Mills Corporation intends to dissolve and liquidate its assets on Aug. 1, 2007. A certificate of dissolution for Mills will be filed with the Secretary of State of the State of Delaware, after which Mills will liquidate and wind up its affairs. A 50/50 joint venture between a subsidiary of Simon Property Group Inc. and funds managed by Farallon Capital Management L.L.C., has acquired all of the outstanding common stock of The Mills Corporation. After dissolution of The Mills, The Mills Limited Partnership will continue to own and operate its existing portfolio of regional shopping mall and retail and entertainment centers. In accordance with the provisions of the Certificates of Designations, Numbers, Voting Powers, Preferences and Rights of each outstanding series of Mills preferred stock, each share of preferred stock will be paid its liquidation preference per share plus an amount equal to any accrued and unpaid dividends to the date of payment on Aug. 1, 2007. A summary of the preferred securities and liquidation payments per share are: a) 9% Series B Cumulative Redeemable Preferred Stock -- liquidation payment per share is US$27.25, including US$2.25 of accrued unpaid dividends; b) 9% Series C Cumulative Redeemable Preferred Stock -- liquidation payment per share is US$27.25, including US$2.25 of accrued unpaid dividends; c) 8.75% Series E Cumulative Redeemable Preferred Stock -- liquidation payment per share is US$27.1875, including US$2.1875 of accrued unpaid dividends; d) Series F Convertible Cumulative Redeemable Preferred Stock -- liquidation payment per share is US$1,067.50, including US$67.50 of accrued unpaid dividends; and e) 7.875% Series G Cumulative Redeemable Preferred Stock -- liquidation payment per share is US$2,696.88, including US$196.88 of accrued unpaid dividends Notice of the dissolution and liquidation of Mills is being sent to record holders of The Mills preferred stock. About The Mills Corporation Headquartered in Chevy Chase, Maryland, The Mills Corporation (NYSE: MLS) -- http://www.themills.com/-- conducted its business through The Mills Limited Partnership, a subsidiary. The company develops, owns, manages retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations. The company owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction around the world. ===================== S W I T Z E R L A N D ===================== A-Z KOPIERSERVICE: St. Gallen Court Closes Bankruptcy Process ------------------------------------------------------------- The Bankruptcy Service of St. Gallen entered June 12 an order closing the bankruptcy proceedings of JSC A-Z Kopierservice. The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Christoph Schenk 9001 St. Gallen Switzerland The Debtor can be reached at: JSC A-Z Kopierservice Oberer Graben 3 9000 St. Gallen Switzerland CASTIGLIONI CONSULTING: Liquidation Claims Due July 19 ------------------------------------------------------ Creditors of LLC Castiglioni Consulting have until July 19 to submit their claims to: Marco Castiglioni Liquidator Hochwachtweg 5 6312 Steinhausen ZG Switzerland The Debtor can be reached at: LLC Castiglioni Consulting Cham ZG Switzerland FINCHIP JSC: Creditors' Liquidation Claims Due July 23 ------------------------------------------------------ Creditors of JSC Finchip have until July 23 to submit their claims to: Bernhard Stadelmann Liquidator SchOneggstrasse 6 PF 336 6048 Horw LU Switzerland The Debtor can be reached at: JSC Finchip Ennetburgen NW Switzerland HABERLE INVEST: Lucerne Court Closes Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Service of Lucerne entered May 31 an order closing the bankruptcy proceedings of JSC Haberle Invest & Treuhand. The Bankruptcy Service of Lucerne can be reached at: Bankruptcy Service of Lucerne 6002 Lucerne Switzerland The Debtor can be reached at: JSC Haberle Invest & Treuhand Grendelstrasse 2 6002 Lucerne Switzerland INFINITI AG: Nidwalden Court Closes Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Service of Nidwalden entered June 12 an order closing the bankruptcy proceedings of JSC Infiniti AG. The Bankruptcy Service of Nidwalden can be reached at: Bankruptcy Service of Nidwalden 6370 Stans NW Switzerland The Debtor can be reached at: JSC Infiniti AG Industrie Hofwald 6382 Buren Switzerland PELLCORN JSC: Bern Court Closes Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Service of Bern entered June 4 an order closing the bankruptcy proceedings of JSC Pellcorn. The Bankruptcy Service of Bern can be reached at: Bankruptcy Service of Bern 2501 Biel BE Switzerland The Debtor can be reached at: JSC Pellcorn Wislerenweg 32 3294 Buren a/A Switzerland PHAM INFORMATIK: Zurich Court Closes Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Service of Niederglatt in Zurich entered May 7 an order closing the bankruptcy proceedings of LLC Pham Informatik. The Bankruptcy Service of Niederglatt can be reached at: Bankruptcy Service of Niederglatt 8172 Niederglatt Dielsdorf ZH Switzerland The Debtor can be reached at: LLC Pham Informatik Quy Thi Truong Gartenstrasse 3 8154 Oberglatt Dielsdorf ZH Switzerland PPSA – PRIVATE PARTNERS: Glarus Court Closes Bankruptcy Process --------------------------------------------------------------- The Bankruptcy Service of Glarus entered June 7 an order closing the bankruptcy proceedings of JSC PPSA - Private Partners Holding. The Bankruptcy Service of Glarus can be reached at: Bankruptcy Service of Glarus 8750 Glarus Switzerland The Debtor can be reached at: JSC PPSA - Private Partners Holding Urs Heer Burgstrasse 28 8750 Glarus Switzerland SCHULZ-AUTOMATION LLC: Basel Court Closes Bankruptcy Proceedings ---------------------------------------------------------------- The Bankruptcy Service of Basel entered June 5 an order closing the bankruptcy proceedings of LLC Schulz-Automation. The Bankruptcy Service of Basel can be reached at: Bankruptcy Service of Basel 4051 Basel BS Switzerland The Debtor can be reached at: LLC Schulz-Automation Hardstrasse 1 4052 Basel BS Switzerland SM MEDICAL: Creditors' Liquidation Claims Due July 19 ----------------------------------------------------- Creditors of LLC SM Medical and X-Ray have until July 19 to submit their claims to: Thomas Kronenberg Liquidator JSC Wiroma Schwarzenburgstrasse 854 3145 Niederscherli Switzerland The Debtor can be reached at: LLC SM Medical and X-Ray Koniz BE Switzerland STAHLTECH LLC: Creditors' Liquidation Claims Due July 31 -------------------------------------------------------- Creditors of LLC Stahltech have until July 31 to submit their claims to: Park Treuhand Liquidator Promenadenstrasse 19 P.O. Box 1718 8201 Schaffhausen Switzerland The Debtor can be reached at: LLC Stahltech Wilchingen SH Switzerland STOLL REPRO-ATELIER: Bern Court Closes Bankruptcy Proceedings ------------------------------------------------------------- The Bankruptcy Service of Bern entered June 7 an order closing the bankruptcy proceedings of LLC Stoll Repro-Atelier. The Bankruptcy Service of Bern can be reached at: Bankruptcy Service of Bern Office Thun 3602 Thun BE Switzerland The Debtor can be reached at: LLC Stoll Repro-Atelier Kasernenstrasse 5 3600 Thun BE Switzerland TAURUS CMBS: S&P Assigns BB Ratings to EUR2.5 Mln Class E Notes --------------------------------------------------------------- Standard & Poor's Ratings Services said today that it assigned its preliminary credit ratings to the EUR550 million (equivalent) commercial mortgage-backed floating-rate notes to be issued by Taurus CMBS (Pan-Europe) 2007-1 Ltd., a special purpose entity incorporated in Ireland with limited liability. At closing, Taurus CMBS (Pan-Europe) 2007-1 will use the proceeds of the note issuance to acquire a portfolio of seven commercial real estate loans from Merrill Lynch Capital Corp. and Merrill Lynch International Bank Ltd., secured over 38 commercial properties in France and Germany. The issuer will also use the proceeds to make six unsecured loans to Taurus Swiss CMBS (Pan-Europe) 2007-1 AG out of a portion of the issue proceeds of the notes, and after swapping this amount into Swiss francs under the currency swap agreements. These loans are backed by six loans secured by 19 properties in Switzerland. The largest loan accounts for 24.89% of the pool. The loans are secured on 57 properties throughout Switzerland, France, and Germany. Of the loans, 12 (75.11% by loan balance) have additional debt in the form of a subordinate B-note. This transaction is the sixth in the Taurus series to be arranged by Merrill Lynch, but its second issuance with pan- European collateral. Ratings List Taurus CMBS (Pan-Europe) 2007-1 Ltd. EUR550 Million (Equivalent) Commercial Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Amount Class Rating (Mln.) ----- ------ ---- A1 AAA EUR407.60 A2 AAA EUR21.30 X1 AAA EUR0.05 X2 AAA CHF0.10 B AA EUR31.50 C A EUR45.80 D BBB EUR36.20 E BBB- EUR5.00 F BB EUR2.50 TB TECH: Creditors' Liquidation Claims Due July 27 -------------------------------------------------- Creditors of LLC TB Tech have until July 27 to submit their claims to: Hansjorg Zurlinden Liquidator Herbstweg 113 8050 Zurich Switzerland The Debtor can be reached at: LLC TB Tech Wil ZH Switzerland VELTUR JSC: Creditors' Liquidation Claims Due July 19 ----------------------------------------------------- Creditors of JSC Veltur have until July 19 to submit their claims to: Kurt Runzi Liquidator Kusnachterstr. 59 8126 Zumikon Meilen ZH Switzerland The Debtor can be reached at: JSC Veltur Zumikon Meilen ZH Switzerland =========== T U R K E Y =========== BANKPOZITIF KREDI: Raises US$150 Million in London Bond Issue ------------------------------------------------------------- BankPozitif, a subsidiary of Bank Hapoalim in Turkey, has raised US$150 million from a successful five year EuroBond issue. The issue is expected to serve as a source for financing the rapid growth in the activity of the Turkish bank. Demand for the bonds was vibrant and 35 financial institutions from Israel, Switzerland, Luxembourg, Holland and the UK participated in the issue. Lead underwriter for the issue was Deutsche Bank. The issue turned out to be heavily over-subscribed even though, as the Bank noted, this was during a tumultuous week for the world’s bond markets when many companies, including leading international financial institutions, were forced to cancel their issues or raise the issue price. Bank Hapoalim purchased BankPozitif in November 2006. At the time of the acquisition, BankPozitif’s assets amounted to US$280 million while in its reports for March 31, 2007 these assets totaled US$473 million -– an increase of 70% within five months. About Bankpozitif Turkey-based Bankpozitif -- http://www.bankpozitif.com.tr/-- is currently 57.55%-owned by Bank Hapoalim with the remainder of the shares held by one of the C Group companies, C Faktoring A.S. The bank focuses on services to retail banking customers and to business customers in Turkey. The Turkish market is regarded as one of the most attractive emerging markets, with the Turkish economy presenting a GDP growth rate of 7% between 2004 and 2006. During recent months, many Israeli companies have entered into investments in Turkey, principally in the areas of real estate, energy, commerce and services. * * * Fitch Ratings assigned Bankpozitif a foreign currency Issuer Default rating of 'BB' and a local currency IDR of 'BB+', both with Stable Outlook on June 14, 2007. The expected 'BB' rating of the notes reflects Fitch's standard rating practice for senior unsecured debt instruments of issuers with IDRs of 'BB-' or higher. ============= U K R A I N E ============= BORTNITSKY PRODUCTION-TRANSPORT: Creditors' Claims Due July 10 -------------------------------------------------------------- Creditors of CJSC Bortnitsky Production-Transport Enterprise Agricultural Service (code EDRPOU 05409292) have until July 10 to submit written proofs of claim to: Alexander Lavrinchuk Liquidator P.O. Box 43 04112 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 44/578-23/51-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: CJSC Bortnitsky Production-Transport Enterprise Agricultural Service Industrial Str. 2 02088 Kiev Ukraine BUZNITSKY AGRICULTURAL: Creditors Must File Claims by July 8 ------------------------------------------------------------ Creditors of Buznitsky Agricultural LLC (code EDRPOU 03755911) have until July 8 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij 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. 320/11b-06. The Debtor can be reached at: Buznitsky Agricultural LLC Chkalov Str. 38 Mironovka 08800 Kiev Ukraine GAL CLAYDITE: Proofs of Claim Deadline Set July 8 ------------------------------------------------- Creditors of LLC Science-Production Enterprise Claydite (code EDRPOU 32683597) have until July 8 to submit written proofs of claim to: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 6/28-8/5. The Debtor can be reached at: LLC Science-Production Enterprise Claydite B. Hmelnitsky Str. 27 Zubra Pustomitov District 81135 Lvov Ukraine GELIOS LLC: Proofs of Claim Deadline Set July 10 ------------------------------------------------ Creditors of LLC Gelios (code EDRPOU 25025521) have until July 10 to submit written proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 7/118-07-3460. The Debtor can be reached at: LLC Gelios Krasnov Str. 14/29 65059 Odessa Ukraine KRASILOV ATP-16841: Creditors Must File Claims by July 8 -------------------------------------------------------- Creditors of OJSC Krasilov ATP-16841 (code EDRPOU 32584358) have until July 8 to submit written proofs of claim to: Victor Matuschak Liquidator Skovoroda Str. 14 Apartment 151 29000 Hmelnitsky Ukraine The Economic Court of Hmelnitskij commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 4/355-B. The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The Debtor can be reached at: OJSC Krasilov ATP-16841 Grushevsky Str. 2a Krasilov Hmelnitskij Ukraine KRYM RESTORATION: Proofs of Claim Deadline Set July 8 ----------------------------------------------------- Creditors of CJSC Krym Restoration (code EDRPOU 02498079) have until July 8 to submit written proofs of claim to: Alexander Kaptsov Temporary Insolvency Manager Apartment 116 Heroes of Stalingrad Avenue 39-a 04213 Kiev Ukraine The Economic Court of AR Krym commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 2-3/5657-2007. The Court is located at: The Economic Court of AR Krym Karl Marks Str. 18 Simferopol 95000 AR Krym Ukraine The Debtor can be reached at: CJSC Krym Restoration Uzlovaya Str. 2 Simferopol 95047 AR Krym Ukraine MACHINE OPERATOR: Creditors Must File Claims by July 8 ------------------------------------------------------ Creditors of OJSC Machine Operator (code EDRPOU 01350995) have until July 8 to submit written proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/85-07. The Debtor can be reached at: OJSC Machine Operator Krasnoarmeyskaya Str. 11 Bar Vinnica Ukraine OIL TRADE: Creditors Must File Claims by July 8 ----------------------------------------------- Creditors of LLC Oil Trade (code EDRPOU 31980249) have until July 8 to submit written proofs of claim to: The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 29/259-06. The Debtor can be reached at: LLC Oil Trade Tambov Str. 4 Dnieprodzerzhynsk 51900 Dnipropetrovsk Ukraine PHOTO DEVICE: Proofs of Claim Deadline Set July 8 ------------------------------------------------- Creditors of State Enterprise Science-Production Complex Photo Device (code EDRPOU 14312329) have until July 8 to submit written proofs of claim to: Elena Levchenko Temporary Insolvency Manager Kosmicheskaya Str. 8b Kiev Ukraine The Economic Court of Cherkassy commenced bankruptcy supervision procedure on the company on March 23. The case is docketed under Case No. 14/1645. The Court is located at: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: State Enterprise Science-Production Complex Photo Device B. Vishnevetsky Str. 85 18000 Cherkassy Ukraine SMIK OJSC: Proofs of Claim Deadline Set July 8 ---------------------------------------------- Creditors of OJSC Petrovsky Plant SMiK (code EDRPOU 04012336) have until July 8 to submit written proofs of claim to: Roman Bykovchenko Temporary Insolvency Manager Gaynutdimov Str. 9 Stepan Sarny District Rovno Ukraine The Economic Court of Kiev commenced the bankruptcy supervision procedure on the company on April 20. The case is docketed under Case No. 24/271-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: OJSC Petrovsky Plant SMiK Siretskaya Str. 33 04073 Kiev Ukraine TANDEM-SERVICE LLC: Creditors Must File Claims by July 8 -------------------------------------------------------- Creditors of LLC Tandem-Service (code EDRPOU 20081845) have until July 8 to submit written proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/148-07. The Debtor can be reached at: LLC Tandem-Service Dubovy gay Str. 60 Letin 22300 Vinnica Ukraine ZHYTOMIR-WOOD OJSC: Creditors Must File Claims by July 8 -------------------------------------------------------- Creditors of OJSC Zhytomir-Wood (code EDRPOU 00274677) have until July 8 to submit written proofs of claim to: Liudmila Shwediuk Andrew Ivanov Str. 21/17 01010 Kiev Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 4/36-b. The Court is located at: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: OJSC Zhytomir-Wood Kievskaya Str. 77 10001 Zhytomir Ukraine ZOLOTONOSHA FURNITURE: Proofs of Claim Deadline Set July 8 ---------------------------------------------------------- Creditors of Oleg Bilera have until July 8 to submit written proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 10/2400. The Debtor can be reached at: Common Industrial Enterprise Zolotonosha Furniture Plant Shevchenko Str. 24 Zolotonosha 19700 Cherkassy Ukraine =========================== U N I T E D K I N G D O M =========================== CANWEST MEDIAWORKS: Debt Reduction Cues Moody's to Hold Ratings --------------------------------------------------------------- Moody's Investors Service affirmed all ratings of CanWest MediaWorks Inc. and CanWest MediaWorks LP following the announcement by CanWest that LP would reduce the amount of its planned debt offerings by about US$130 million related to the privatization of CanWest MediaWorks Income Fund by CanWest. Specifically, the rating action considers that LP's senior subordinated note offering would be reduced by US$250 million to US$400 million, partially offset by an increase in senior secured term loans of US$65 million and a new planned senior subordinated term loan of US$75 million. The outlook remains stable. Ratings Affirmed: * CanWest MediaWorks Inc: -- corporate family rating at B1 -- probability of default rating at B1 -- US$760 million senior subordinated notes, due 2012 at B3, LGD 5, 89% -- Speculative grade liquidity rating at SGL-2 CanWest MediaWorks Limited Partnership: -- senior secured rating at Ba1 (LGD 2, 13% from LGD 1, 7%): -- US$250 million senior secured revolver, due 2012 -- US$265 million senior secured term loan A, due 2012 (increased from US$250 million) -- CNDUS$500 million senior secured term loan B, due 2014 (increased from CUS$450 million equivalent) -- US$400 million senior subordinated rating at B2 (LGD 5, 75% from LGD 5, 73% and reduced from US$650 million) CanWest MediaWorks Inc. is a communications company based in Winnipeg, Manitoba Canada, which owns, operates and/or holds substantial interests in TV, radio, publishing and out-of home advertising operations in Canada, Australia, New Zealand, the United Kingdom, the United States as well as other international locations. COMPAGNIE EUROPEENNE: Chapter 15 Petition Summary ------------------------------------------------- Petitioner: Clive Paul Thomas Debtor: Compagnie Europeenne d'Assurances Industrielles S.A. 360 Boulevard du Souverain 1160 Brussels, Belgium 1 Stoke Road, Guildford, Surrey GU1 4HW United Kingdom Case No.: 07-12009 Type of Business: The Debtor was an insurance company underwriting a wide array of insurance and reinsurance business, including marine, transport and aviation, industrial risks, fire and allied perils, liability, casualty, private lines and commercial insurance between 1974 and 1994. On Dec. 31, 1994, the company ceased all underwriting activities and went into run-off. During the run-off process, the Debtor ceases underwriting new businesses and seek to determine, settle and pay all liquidated claims of their insureds as they arise. Depending on the type of business underwritten, the Debtor's run-off can take decades to complete. To shorten the run-off period and reduce administrative costs, the Debtor proposed a scheme of arrangement pursuant to section 425 of the Companies Act 1985 of England and Wales under English law. The Debtor is solvent and the Petitioner anticipates that all claims addressed by the Arrangement will be paid in full. During the Debtor's creditors' meetings, the requisite majorities of each class of creditors voted in favor of the Arrangement. Chapter 15 Petition Date: June 28, 2007 Court: Southern District of New York (Manhattan) Judge: Martin Glenn Petitioner's Counsel: Howard Seife, Esq. Chadbourne & Parke LLP 30 Rockefeller Plaza New York, NY 10112 Tel: (212) 408-5361 Fax: (212) 541-5369 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million DRAGON FUTURES: Creditors' Meeting Slated for July 18 ----------------------------------------------------- Creditors of Dragon Futures Ltd. (Company Number 04147702) will meet at 10:30 a.m. on July 18 at: PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on July 17 at: R. Downs and R.W. Birchall Joint Administrators PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT England PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. FORD MOTOR: U.S. Sales Fall 8.1% to 247,599 in June 2007 -------------------------------------------------------- Ford Motor Company’s total sales (including sales to fleet customers) were 247,599, down 8 percent. The decline in total sales reflected a planned reduction in sales to daily rental companies. Daily rental sales were down 39 percent (22,000 units) compared with a year ago. In the first half, sales to daily rental companies were 89,000 units lower than a year ago (down 30 percent). Soaring demand for new and redesigned crossover vehicles, including the all-new Ford Edge, "edged" Ford, Lincoln and Mercury retail sales to their first combined increase since October 2006. Edge sales were 12,470 and Lincoln MKX sales were 3,400. Edge was recognized as the industry's top performing new vehicle in J.D. Power and Associates' 2007 Automotive Performance, Execution and Layout Study TM (APEAL). “These new crossovers are proof we are building more products people want to buy,” said Mark Fields, Ford’s president of the Americas. "The Edge and Lincoln MKX and other new and redesigned products are helping us to stabilize our retail market share, a key goal in our plan to return to profitability in North America." The redesigned 2008 model Ford Escape and Mercury Mariner crossovers set sales records in June, with Escape sales reaching 19,147, up 33 percent from a year ago, and Mariner sales totaling 3,788, up 97 percent. In addition, the Escape and Mariner hybrid models set June sales records, with Escape hybrid sales of 2,192 and Mariner hybrid sales of 334. In total, Ford, Lincoln and Mercury crossovers were up 83 percent compared with a year ago as the company continues to achieve the largest sales increase in the industry’s fastest- growing segment. Other new and redesigned products contributed to Ford’s strong retail performance in June. Retail sales for the Ford Expedition were higher than a year ago, the full-size sport utility vehicle's tenth consecutive month of sales increases. June sales of Ford's F-Series, America's best-selling truck, were essentially flat compared with a year ago, while sales of the Ford Focus small car climbed 20 percent. A redesigned Ford Focus will debut later this year. The Lincoln brand posted its ninth month in a row of higher retail sales. June sales were 30 percent higher than a year ago. In the first six months of 2007, Lincoln sales were 15 percent higher than the same period a year ago. Lincoln’s rebound reflects the new Lincoln MKX crossover, the new Lincoln MKZ sedan (up 38 percent in June), and the redesigned Navigator. Land Rover dealers reported an 8 percent sales increase in June, reflecting the addition of the all-new LR2 crossover. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. FUTURE-PEOPLE RECRUITMENT: Taps Administrators from BDO Stoy ------------------------------------------------------------ Simon Edward Jex Girling and Graham David Randall of BDO Stoy Hayward LLP were appointed joint administrators of Future-People Recruitment Ltd. (Company Number 04293642) on June 21. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: Future-People Recruitment Ltd. Waterloo House 1 Waterloo Street Weston Super Mare BS23 1LA England Tel: 0845 130 0390 HEATING FINANCE: Moody's Cuts Rating to B2 on Weak Performance -------------------------------------------------------------- Moody's Investors Service downgraded Heating Finance plc's corporate family rating to B2 from Ba3, downgraded the rating on GBP574 million of senior secured credit facilities to B2/LGD3/45% from Ba3/LGD3/44% and downgraded the rating on the GBP100 million mezzanine notes due 2014 to Caa1/LGD6/94% from B2/LGD6/94%. The negative outlook on all ratings was maintained. These rating actions follow the company's profit warning and announcement that a downturn in certain markets for heating products will continue beyond the first quarter of 2007. As a result of this downturn the company reported that it has commenced discussions with its senior debt lenders with a view to modifying terms of its credit facilities. The downgrade reflected Moody's concerns stemming from: (i) the company's disclosure of continued weaker operating performance; (ii) possible impacts on the core business and future cash flows from the market downturn; (iii) Moody's view of execution risk from possible business restructuring; and (iv) uncertainty surrounding the outcome of discussions with lenders and modification of lending terms. Moody's previously reported that the company was weakly positioned within the Ba3 corporate family rating, with a negative outlook reflecting downward ratings pressure should the company be unable to improve its financial metrics from 2005 year end levels. Lower expected credit metrics combined with an extended softening in certain markets, a further decline in the French business and uncertainty over the impact and outcome of negotiations with senior lenders has warranted the downgrade to B2. The French business has performed particularly negatively in 2007 due to generally weak markets for heating products and the trend to electrical heating, heat pumps and solar products and away from floor standing gas and oil fired boilers. Weaker performance in certain markets other than France is a result primarily of lower levels of heating market activity, but other factors include: (i) margin pressure from rising input prices (particularly copper, stainless steel and energy); (ii) environmental and energy related legislation changes; and (iii) consumer buying trends influenced by elements such as macroeconomic and political conditions, availability and price movements of different fuel types and taxation or tax incentive changes. The negative outlook for ratings reflects the uncertainty surrounding the timing and effort needed to address the French business and the outcome of negotiations to amend senior credit facilities, together with the current downward trend in certain other markets experienced in 2007 to date and a tighter liquidity position expected. Moody's expect credit metrics to weaken in 2007. Stabilization of the rating will depend on the company demonstrating a sustainable reversal of the downward trend and acceptable liquidity position. The ratings affected by today's rating actions are as follows: -- Corporate Family rating downgraded to B2 from Ba3. -- Rating on GBP574 million of senior secured credit facilities downgraded to B2, LGD3, LGD assessment of 45% from Ba3, LGD3, LGD assessment of 44%. -- Rating on GBP100 million mezzanine notes due 2014 downgraded to Caa1, LGD6, LGD assessment of 94% from B2, LGD6, LGD assessment of 94%. -- Outlook on all ratings maintained as Negative. Headquartered in Derby, England, Heating Finance plc is the direct holding company of Baxi Group Limited. Baxi Group Limited is a European leading designer and manufacturer of residential heating and hot water systems. For the financial year ended Dec. 31, 2006, Baxi reported around GBP919 million in revenues. KWIK SAVE: Goes Into Administration; Transfers Remaining Stores --------------------------------------------------------------- The Union of Shop, Distributive and Allied Workers says hundreds of its members who worked for six weeks without pay will be devastated as Kwik Save Ltd. goes into administration transferring 56 stores to a new company and closes the remaining Kwik Save stores from today, July 6, 2007. Kwik Save told the High Court in Manchester yesterday that they wanted to transfer 56 stores to a new company which Usdaw believes would trade as Fresh Express and close the remaining stores which the judge agreed. Union members in the 56 stores being transferred to the new company will join with the same terms and conditions and the new owners made a commitment to the court that they would pay their new staff their back pay by next Tuesday at the very latest. But the workers made redundant yesterday and those who lost their jobs last month when Kwik Save closed 81 stores will still be classed as Kwik Save employees so will have to apply for statutory protection via administrators KPMG. "Usdaw members have been working for nothing for the last six weeks enduring great hardship in the hope that their sacrifice would help save the company so staff in the stores earmarked for closure will be utterly devastated," Usdaw National Officer Joanne McGuinness said. "Our members will be feeling they have been totally let down by Kwik Save and we will support them through the next difficult period as they claim statutory redundancy pay, holiday pay and pay in lieu of notice through the Department of Trade and Industry. "At this stage we have no firm information which stores are to close and which are to transfer but as soon as we know we will inform our members. "Usdaw will be seeking an urgent meeting with the new company to examine their business plan for driving the business forward so we can reassure our members that they have a long-term future with the new company and that they won’t be placed in this terrible situation again. "KPMG are the Kwik Save administrators who will be writing to all redundant staff, including those made redundant last month when 81 stores were closed, with details of how they can claim statutory redundancy payments including wages, notice and holidays through the DTI. "Usdaw will also contact our Kwik Save members with advice on how to claim what they are owed and we will, of course, support them through what will be a difficult period making the case that those statutory payments need to be paid as soon as possible to relieve hardship.” As previously reported in the TCR-Europe, the Chancery court in Manchester adjourned Kwik Save’s bid to refinance their remaining 145 stores until yesterday, July 5, 2007, after the company presented to the court an informal canvass of some of their staff who were asked if they were prepared to work for another week without pay and a majority of those questioned said they were willing to forgo wages for a week to stave off administration. 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. LADBROKES PLC: Expects GBP45 Mln Profit from Telephone Betting -------------------------------------------------------------- In recent weeks, Ladbrokes plc has experienced significantly increased levels of High Rollers' Telephone betting activity. As a result, Telephone betting operating profit for the six months ended June 30, 2007 is expected to be approximately GBP45 million higher than during the same period last year. Otherwise, despite challenging conditions for UK Retail Over the Counter business, Ladbrokes continues to trade in line with management's expectations. Results for the six months to June 30, 2007 will be released on Aug. 9, 2007. About Ladbrokes Headquartered in Watford, United Kingdom, Ladbrokes plc -- http://www.ladbrokesplc.com/-- engages in fixed odds betting. The company is comprised of Ladbrokes, the biggest retail bookmaker in the U.K. and Ireland, Ladbrokes.com, a world- leading provider of interactive betting and gaming services, Vernons, the leading football pools operator and Ladbrokes Casinos, which opened its first casino at the Hilton London Paddington in July 2006. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors in April 2007, the rating agency confirmed its Ba2 Corporate Family Rating for Ladbrokes Plc. Moody's also assigned a Ba2 Probability-of-Default rating to the company. MBN BOMFORD: Brings In Administrators from Deloitte & Touche ------------------------------------------------------------ Andrew Philip Peters, David John Langton and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of MBN Bomfords Ltd. (Company Number 2352478) on June 22. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting, and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. The company can be reached at: MBN Bomford Ltd. Orchard Farm Salford Priors Evesham WR11 5UU England Fax: 01789 490534 METRONET BCV: S&P Cuts Debt Ratings to BB+ After Review ------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term debt rating on U.K.-based underground rail infrastructure financing company Metronet Rail BCV Finance PLC's (Metronet BCV) GBP810 million senior secured bank loan due 2030 to 'BB+' from 'BBB-'. At the same time, the underlying long-term debt ratings on the GBP165 million index-linked bonds due 2032 and the GBP350 million fixed-rate bonds due 2032 were also lowered to 'BB+' from 'BBB-'. The ratings remain on CreditWatch with negative implications, where they were placed on May 22, 2007. In addition, Standard & Poor's affirmed its 'AAA' insured rating on the fixed-rate and index-linked debt, reflecting the unconditional and irrevocable guarantee of payment of scheduled interest and principal from Financial Security Assurance (U.K.) Ltd. (FSA; AAA/Stable/--) and Ambac Assurance U.K. Ltd. (AAA/Stable/--), respectively. "The downgrade follows the company's formal submission to the statutory arbiter for an extraordinary review of GBP992 million of additional costs on its public-private partnership contract," said Standard & Poor's credit analyst Jon Manley. The review is likely to be resolved in about 12 months, after which the company will be remunerated for any additional costs it has incurred 'economically and efficiently'. The review process is, however, untested and, therefore, the outcome is uncertain. "The outcome of the extraordinary review is critical for the future of the company and its ability to meet its obligations under the PPP contract," added Mr. Manley. "If the SA does not remunerate the company for a significant proportion of the costs then a financial restructuring of the company is likely." Metronet BCV is therefore in discussions with relevant parties regarding a revised business and financial plan. As part of this process, both the shareholders (in terms of their potential financial and operational contribution) and funders (including lenders, FSA, and Ambac) are seeking to establish a credible plan that will allow continued funding of the company and a realistic prospect of meeting its contractual service obligations in the long term. If, however, the SA recognizes none or only a limited amount of the additional expenditure then the company is unlikely to be a viable going concern. As part of the extraordinary review process, there is provision for an interim payment of infrastructure service charge for approved additional costs. This would provide important liquidity support to the company over the next 12 months. A determination on the payment will likely be made by the end of July. The Interim ISC will also provide a good indication as to the likely overall outcome of the extraordinary review. Standard & Poor's will review the CreditWatch status following publication of the SA's interim ISC directions and the resolution of ongoing discussions between the company, sponsors, and funders regarding the adoption of the proposed financial and operational recovery plan to deliver the required service contract obligations. METRONET SSL: S&P Cuts Debt Ratings to BB+; Remains on Watch Neg ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term debt rating on U.K.-based underground rail infrastructure financing company Metronet Rail SSL Finance PLC's GBP810 million senior secured bank loan due 2030 to 'BB+' from 'BBB-'. At the same time, the underlying long-term debt ratings on the GBP165 million index-linked bonds due 2032 and GBP350 million fixed-rate bonds due 2032 were also lowered to 'BB+' from 'BBB-'. The ratings remain on CreditWatch with negative implications, where they were placed on May 22, 2007. In addition, Standard & Poor's affirmed its 'AAA' insured rating on the fixed-rate and index-linked debt, reflecting the unconditional and irrevocable guarantee of payment of scheduled interest and principal from Ambac Assurance U.K. Ltd. (AAA/Stable/--) and Financial Security Assurance (U.K.) Ltd. (FSA; AAA/Stable/--), respectively. "The downgrade reflects Standard & Poor's opinion that the company will shortly make a formal submission to the statutory arbiter for an extraordinary review of additional costs on its public-private partnership contract," said Standard & Poor's credit analyst Jon Manley. The review is likely to be resolved about 12 months after submission and will remunerate the company for any additional costs it has incurred 'economically and efficiently'. The review process is, however, untested and, therefore, the outcome is uncertain. "The outcome of the extraordinary review is critical for the future of the company and its ability to meet its obligations under the PPP contract," added Mr. Manley. "If the SA does not remunerate the company for a significant proportion of the costs then a financial restructuring of the company is likely." Metronet SSL is therefore in discussions with relevant parties regarding a revised business and financial plan. As part of this process, both the shareholders (in terms of their potential financial and operational contribution) and funders (including lenders, FSA, and Ambac) are seeking to establish a credible plan that will allow continued funding of the company and a realistic prospect of meeting its contractual service obligations in the long term. If, however, the SA recognizes none or only a limited amount of the additional expenditure then the company is unlikely to be a viable going concern. As part of the extraordinary review process, there is provision for an interim payment of infrastructure service charge (ISC) for approved additional costs. A determination on this payment would likely be made within a few weeks of receipt of the extraordinary review submission and may provide important liquidity support to the company. The Interim ISC will also provide a good indication as to the likely overall outcome of the extraordinary review. Standard & Poor's will review the CreditWatch status following the publication of the SA's interim ISC directions after formal submission of the extraordinary review and the resolution of ongoing discussions between the company, sponsors, and funders regarding the adoption of the proposed financial and operational recovery plan to deliver the required service contract obligations. MORTGAGES PLC: Fitch Upgrades No. 7’s Class E Notes to BB+ ---------------------------------------------------------- Fitch Ratings has upgraded six tranches of two Mortgages plc UK non-conforming RMBS transactions and affirmed five others. The rating actions follow a satisfactory review of these deals. The Outlooks on eight tranches of these two deals are revised to Positive from Stable. The upgrades to Mortgages No. 6 plc (Mplc6) reflect the continued good performance of the transaction, with both arrears levels and losses remaining low. Cumulative losses to date account for 0.41% of the original pool balance. Fitch employed its credit cover multiple methodology when reviewing this transaction. The upgrades to Mortgages No. 7 plc (Mplc7) follow a full loan- by-loan analysis of the pool as of April 2007. The transaction also has a low level of losses to date, accounting for only 0.03% of the original pool balance. An increase in the principal payment rate for Mplc7 has also accelerated the build- up of credit enhancement, allowing for an upgrade of the junior tranches. There have been recent calculation errors in relation to Mplc6 whereby the reserve fund has been incorrectly amortized. This resulted from the current balance of foreclosed loans rather than the cumulative amount being used for the reserve fund trigger. Mortgages plc has now replenished the reserve back to the required amount. The reserve fund for both the outstanding Mortgages plc transactions will not amortize in future. Cumulative foreclosed loans as a percentage of the original collateral balance, as calculated by Fitch, are currently 4.53% in Mplc6 and 2.74% in Mplc7, above the 2.25% trigger in each deal. The extra CE available as a result of the reserve fund not amortizing has allowed Fitch to assign Positive Outlooks to a number of the tranches of both Mplc6 and Mplc7 as CE for the senior tranches will continue to grow. With an amortizing reserve fund and a pro-rata pay down of the notes CE would have remained static after the initial doubling of the reserve fund. The Mortgages plc transactions have historically performed in line with the Fitch UK Non-Conforming index. Arrears greater than three months, including current possessions, for Mplc7 have been below the Fitch index, currently comprising 10.76% of the outstanding pool balance. For Mplc6 such arrears are currently above the index for a transaction that is seasoned 30 months, with arrears and current possessions comprising 15.42% of the current pool. The rating actions are: Mortgages No. 6 plc: -- Class A2 (ISIN XS0206259888) affirmed at 'AAA'. Outlook Stable -- Class B (ISIN XS0206260464) upgraded to 'AA+' from 'AA'. Outlook revised to Positive from Stable -- Class C (ISIN XS0206260894) upgraded to 'A+' from 'A'. Outlook revised to Positive from Stable -- Class D (ISIN XS0206261603) affirmed at 'BBB+'. Outlook revised to Positive from Stable -- Class E (ISIN XS0206261942) affirmed at 'BBB'. Outlook revised to Positive from Stable Mortgages No. 7 plc: -- Class A1 (ISIN XS0225921732) affirmed at 'AAA'. Outlook Stable -- Class A2 (ISIN XS0225922110) affirmed at 'AAA'. Outlook Stable -- Class B (ISIN XS0225922383) upgraded to 'AA+' from 'AA'. Outlook revised to Positive from Stable -- Class C (ISIN XS0225922466) upgraded to 'A+' from 'A'. Outlook revised to Positive from Stable Class D (ISIN XS0225922623) upgraded to 'BBB+' from 'BBB'. Outlook revised to Positive from Stable -- Class E (ISIN XS0225922896) upgraded to 'BB+' from 'BB'. Outlook revised to Positive from Stable PRIMUS TELECOMM: Concludes Sale of 22.5MM Shares of Common Stock ---------------------------------------------------------------- PRIMUS Telecommunications Group Incorporated has concluded the sale of 22.5 million shares of registered common stock at a price of US$0.915 per share to existing and new qualified institutional buyers and institutional accredited investors. The US$18.9 million of net proceeds, after fees and expenses, will be used for general corporate purposes including the repurchase, repayment or redemption of outstanding debt. "We are pleased that existing and new investors participated in this transaction which further enhances our financial flexibility," Thomas R. Kloster, chief financial officer, stated. "Additionally, as a result of raising new equity in this transaction, the accelerated maturity provisions in PRIMUS's 5% Exchangeable Senior Notes are eliminated, thereby establishing June 2010 as the stated maturity for these notes." CRT Capital Group LLC served as sole placement agent for the offering. About PRIMUS Telecommunications Headquartered in McLean, Virginia, PRIMUS Telecommunications Group Inc. (OTCBB:PRTL) -- http://www.primustel.com/-- offers international and domestic voice, voice-over-Internet protocol, Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the U.S., Canada, Australia, the U.K. and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including about 350 points-of-presence throughout the world, ownership interests in undersea fiber optic cable systems, 16 carrier-grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. As reported in the Troubled Company Reporter on May 7, 2007, PRIMUS Telecommunications Group, Incorporated, reported total assets of US$432.6 million and total liabilities of US$904.8 million, resulting in a total stockholders' deficit of US$472.3 million as of March 31, 2007. SOLUTIA INC: Wants Monsanto & Retiree Settlement Pacts Okayed ------------------------------------------------------------- Solutia Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve: (i) a settlement among Solutia, Monsanto Company, Pharmacia Corporation, the Official Committee of Unsecured Creditors, the Official Committee of Retirees, and the Ad Hoc Trade Committee; and (ii) a settlement among Solutia, Monsanto, the Retirees' Committee, and the Creditors Committee. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, relates that the Monsanto Settlement achieves the overriding goal of Solutia's reorganization -- the permanent reallocation of significant legacy liabilities arising from the 1997 spin off. Monsanto assumes all of Solutia's legacy tort liabilities and a substantial portion of its environmental liabilities. By removing the cloud of the legacy liabilities, the Monsanto Settlement will enhance creditor recoveries, materially improve Solutia's future prospects, preserves crucial commercial relationships with Monsanto and pave the way to a successful reorganization, Mr. Henes says. The proposed Monsanto Settlement achieves as much or more than Solutia could achieve by litigating to an improbable victory without the huge risks, uncertainties, delays and expense that the litigation would visit on Solutia's estates and creditors, Mr. Henes points out. Solutia's relationship with Monsanto has always been a critical part of its business, Mr. Henes tells Judge Beatty. Under the Monsanto Settlement, Monsanto has agreed to extend a master operating agreement for an additional three years through 2020. The Master Operating Agreement provides for Solutia to be "guest" at certain Monsanto-owned facilities that are critical to Solutia's businesses. It also enables Solutia to obtain discounted raw materials and other efficiencies that help improve Solutia's profitability, Mr. Henes informs the Court. The Master Operating Agreement and other important commercial agreements are preserved under the Monsanto Settlement. Conversely, without the Monsanto Settlement, protracted and acrimonious litigation would materially and perhaps permanently impair these agreements and relationships, Mr. Henes maintains. The Monsanto Settlement provides that: (1) Monsanto will be responsible for all alleged legacy tort liabilities. Monsanto has agreed to be responsible for all past and future tort claims related to conduct that occurred before the spin-off. Solutia currently estimates that the ultimate liability for these asserted claims will range between $15,000,000 and 40,000,000, not accounting for future claims that could be asserted for pre-spin conduct, hundreds of additional lawsuits asserting thousands of claims that have been commenced against Monsanto. (2) Monsanto will assume significant environmental legacy liabilities that arise from sites owned by Old Monsanto but never owned by Solutia, which Solutia estimates will remove approximately $150,000,000 worth of complex environmental claims from its estates. Monsanto will also be responsible for the remediation of dioxin contamination in the Kanawha River and surrounding areas. (3) Solutia will be responsible for environmental legacy liabilities that arise from sites it has owned and operated following the spin-off, with the remediation costs Solutia expects to reach $82,000,000 over the next five years. (4) Solutia and Monsanto will share environmental liabilities that arise from sites that were never owned or operated by Solutia but which have been affected by historical contamination from Solutia-owned plants located in Anniston, Alabama and Sauget, Illinois. Costs for the Shared Sites will be allocated in this manner: -- The first $50,000,000 will be paid through Funding Co., a special purpose limited liability company under the Plan that will be funded with proceeds from the rights offering; -- The next $50,000,000 will be paid by Monsanto, less costs it has incurred for remediation of the Shared Sites during Solutia's Chapter 11 cases; -- Solutia will be responsible for the next $325,000,000 in costs for Shared Sites. Solutia, however, has the option to cap its annual costs at $30,000,000 per year and have Monsanto bear excess remediation costs to improve reorganized Solutia's liquidity and cash flow; and -- After $425,000,000, Solutia and Monsanto will split evenly all costs for Shared Sites. The Retiree Settlement preserves post-employment medical and other benefits for Solutia's 20,000 retirees, establishes a trust funded with $175,000,000 in cash to assure the payment of the benefits, and will save Solutia approximately $110,000,000 in consensual benefit modifications. The Retiree Settlement is conditioned upon, and made possible only as a result of, Monsanto's assumption of legacy liabilities as part of the Monsanto Settlement. The Retiree Settlement provides: (A) Creation of the Retiree Trust. On the effective date, Solutia will contribute $175,000,000 in cash proceeds from the rights offering to a retiree trust. The trust will satisfy reorganized Solutia's continued payment of modified and life insurance benefits for pre-spin retirees. (B) Modifications to Medical Benefits. Reorganized Solutia can limit the amount it pays each year for retiree medical expenses, change deductibles and prescription drug co- payments and cap the benefits paid to individual retirees after the age of 65. (C) Modifications to Life Insurance Benefits. Life insurance benefits have been capped for employees who retired before December 31, 2001, and eliminated for those who retired after that date. (D) Retiree Claim. The retirees will receive an allowed, non- priority unsecured claim in the aggregate amount of $35,000,000. The recovery on account of the Retiree Claim will be contributed to the retiree trust and used solely to reimburse Solutia for its payment of benefits for pre- spin and post-spin retirees. (E) Retiree Release. The retirees have agreed to release Solutia, Monsanto and Pharmacia, any employee benefit plans of Monsanto or Pharmacia and their respective representatives, affiliates and successors from all claims related to "retiree benefits." The Settlements' release and injunction provisions are narrowly tailored to preserve the rights of parties with claims being assumed by Monsanto and are only designed to provide finality for Monsanto on the liabilities Solutia is retaining. The Settlements do not afford "blanket immunity" to Monsanto or Pharmacia. The retirees have consented to the releases even though they restrict the Retirees' rights, Mr. Henes avers. In addition, Pharmacia has agreed to release Solutia from any prepetition obligations, to waive its claim in the Chapter 11 cases, and to receive no distributions under the Plan. As consideration, Pharmacia will receive limited releases from and injunctions against any and all claims relating to Solutia or the legacy liabilities retained by Solutia. Monsanto, according to Mr. Henes, has agreed to reasonable consideration in exchange for its contributions and in satisfaction of its claim. Monsanto asserts at least $825,000,000 in claims against the Debtors' estates, including (1) $215,900,000 that Monsanto has spent for legacy liabilities from the Petition Date through May 31, 2007; (2) $179,000,000 that Monsanto estimates it will spend in the future on environmental and tort liabilities under the Monsanto Settlement; and (3) $428,700,000 that Monsanto spent to settle the Anniston litigation. In satisfaction of its claim and based on its contributions, Monsanto will receive 20% of Reorganized Solutia's stock, which Solutia estimates will be worth approximately $240,000,000 at the mid-point of total enterprise value. Additionally, consistent with the proposed allocation of legacy liabilities, Monsanto will have an administrative claim for all amounts it has spent on (a) Retained Sites and (b) environmental liabilities in excess of $50,000,000 at the Shared sites. Solutia has also agreed to pay reasonable fees and expenses incurred by Monsanto's professionals for work related to the Chapter 11 cases, capped at the aggregate fees of the Creditors Committee's professionals. Finally, subject to its assumption of liability relating to certain of the legacy tort and environmental claims, Monsanto will receive releases from and injunctions against claims relating to Solutia or the legacy liabilities retained by Solutia. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Court is set to consider approval of the Disclosure Statement describing Solutia's First Amended Reorganization Plan on July 10, 2007. The Debtors' exclusive period to file a plan expires on July 30, 2007. (Solutia Bankruptcy News, Issue No. 91; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Bank of New York Balks at Amended Plan --------------------------------------------------- The Bank of New York, as indenture trustee for the 11.25% senior secured notes due 2009 issued by Solutia Inc. or its predecessor, filed a statement with the U.S. Bankruptcy Court for the Southern District of New York regarding the treatment of Senior Secured Noteholders' claims under Solutia Inc. and its debtor-affiliates' Amended Joint Plan of Reorganization. The Bank relates that for the past three and a half years, the Debtors and the holders of the Senior Secured Notes have co-existed in relative peace. "Now, however, with the prospect of emergence from Chapter 11 on the horizon, the Debtors, obviously at the behest of certain constituents, have elected to breach the peace and declare war on the Senior Secured Noteholders," John K. Cunningham, Esq., at White & Case LLP, in Miami, Florida, contends. The Official Committee of Unsecured Creditors has attempted to suddenly block any payment of the Senior Secured Notes Trustee's legal fees in contravention of a certain cash collateral order. The Debtors have filed an objection to the Senior Secured Notes Trustee's claim contending that the allowable amount of the claim does not include the stated principal amount of $223,000,000 set forth in the Senior Secured Notes, but rather is allegedly limited to a lesser amount based upon a novel argument of "amortized original issue discount" in the Senior Secured Notes, Mr. Cunningham states. "The Debtors' new theory of allowance, which is totally unsupported by any existing case law or the Bankruptcy Code, is that an oversecured creditor who takes an interest bearing note at par is to be treated differently in bankruptcy than one who takes a note at a discounted to par, but with a lower interest rate," Mr. Cunningham tells the Court. Mr. Cunningham insists that without a resolution of the instant dispute and a consensual allowance of a claim amount on the Senior Secured Notes, the First Amended Joint Plan of Reorganization contains a fundamental incurable defect that solicitation of the Plan needs to be denied outright. The Debtors have chosen to treat the claims of the Senior Secured Noteholders as unimpaired and therefore, not entitled to vote at any of the estates where their secured claims lie. Mr. Cunningham points out that the Debtors' positions with respect to non-impairment under the Plan are inherently inconsistent and unsupportable by the facts and law. Section 1124 of the Bankruptcy Code expressly provides that the Debtors' failure to reinstate the Senior Secured Notes under the Plan renders the notes impaired and, thus, entitles the Senior Secured Noteholders to vote on, and object to, the Plan. The Disclosure Statement also fails to satisfy Section 1125 in several material respects with respect to its description of the Senior Secured Notes Trustee's claim, Mr. Cunningham notes. Mr. Cunningham asserts that because the Plan will have to be re- solicited if the Court later agrees that the claims of the Senior Secured Noteholders are impaired, solicitation of the Plan should be denied at this time. In the alternative, to avoid utter and complete waste, in the event that the Court were otherwise inclined to approve the disclosure statement, before permitting solicitation, the Court should determine whether the treatment of the Senior Secured Noteholders' claims proposed by the Debtors satisfies the requirements of Section 1124, he adds. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Court is set to consider approval of the Disclosure Statement describing Solutia's First Amended Reorganization Plan on July 10, 2007. The Debtors' exclusive period to file a plan expires on July 30, 2007. (Solutia Bankruptcy News, Issue No. 91; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TRENT VALLEY: Appoints Joint Administrators from Vantis ------------------------------------------------------- Alan Roy Limb and Lynn Robert Bailey of Vantis were appointed joint administrators of Trent Valley Restoration (U.K.) Ltd. (Company Number 05596331) on June 21. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Trent Valley Restoration (U.K.) Ltd. Little Tennis Street Nottingham NG2 4EN England Tel: 0115 852 3110 Fax: 0115 941 1959 VIRGIN MEDIA: S&P Places All Ratings on Watch on Buyout Proposal ---------------------------------------------------------------- Standard & Poor's Ratings Services placed all its ratings, including its 'B+' long-term corporate credit rating, on U.K.- based telecommunications provider Virgin Media Inc. and related entities on CreditWatch with negative implications. This follows receipt of a proposal from a private-equity firm to acquire 100% of the company's stock. The CreditWatch placement reflects the confirmation of an equity bid. It also reflects VMI's ongoing strategic review, which includes a possible sale of the company. Despite the fact that no negotiations have been engaged as yet with the bidder, Standard & Poor's believes that there is a reasonable chance that VMI's management could decide to progress take-over discussions. VMI's management has made clear that there is no assurance that any transaction will occur. "Should a highly leveraged takeover of VMI take place, there is a strong likelihood that the 'B+' ratings would no longer be appropriate, as the company's current credit quality is supported by weak, albeit gradually improving, credit ratios," said Standard & Poor's credit analyst Karim Nadji. If the buyout proposal is rejected, or if no transaction is otherwise completed, this would remove the potential threat of increased leverage posed to VMI's financial risk profile. We would, however, need to assess the implications of the company's strategic review before resolving the CreditWatch status to understand if the review could result in a higher degree of business and financial risk. W BAILEY: Brings In Deloitte & Touche to Administer Assets ---------------------------------------------------------- Andrew Philip Peters, Nicholas Guy Edwards and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of W. Bailey Ltd. (Company Number 264606) on June 22. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting, and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. The company can be reached at: W. Bailey Ltd. East Hall Farm East Hall Lane Rainham RM13 9DS England Tel: 01708 557313 Fax: 01708 551799 * BOOK REVIEW: Distressed Investment Banking: To the Abyss and Back -------------------------------------------------------------- Authors: Henry F. Owsley, Peter S. Kaufman Publisher: Beard Books Hardcover: 236 pages List Price: US$74.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587982676/internetbankrupt This book is the definitive work on distressed investment banking by two widely acknowledged leaders in this field. Dealing with the restructuring of troubled companies, an insider's view is provided on the methods and complexities of this fascinating area of investment banking. It demystifies what investment bankers really do and coveys difficult concepts in easy-to-understand terms. Particular focus is directed toward non-conflicted advice to boards of directors interested in recoveries for shareholds. Attorneys, accountants, crisis managers, business students, judges and investment bankers, as well as management and directors of distressed companies will all find this book interesting. ********* 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. 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