/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070718.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, July 18, 2007, Vol. 8, No. 141 Headlines A U S T R I A MEDIPOOL-VITAL LLC: Court Orders Business Shutdown PFEIFFER LLC: Claims Registration Period Ends Aug. 3 RAUSCHER & LAHER: Claims Registration Period Ends July 24 B E L G I U M B-ARENA N.V./S.A.: Fitch Affirms Class F Notes at BB F R A N C E STEELTECH DBT: Court Extends Receivership Period Until Sept. 12 G E R M A N Y ALERIS INT'L: Inks Deal to Buy Wabash Alloys for US$194 Million COFINK BETEILIGUNGSGESELLSCHAFT: Claims Filing Ends Aug. 17 IMMOPLAN IMMOBILIEN: Claims Registration Period Ends Aug. 29 PSIVIDA LIMITED: Inks Definitive Pacts to Sell ADS & Warrants PSIVIDA LIMITED: Enters Into Evaluation Deal w/ Med. Devise Firm TS CO.MIT: Fitch Rates EUR5.87 Million Class F Notes at B I R E L A N D RITCHIE (IRELAND): Coventry May Bid for Assets, Report Says LOCKO FINANCE: Fitch Puts B- Rating to Upcoming Loan Issue TITAN EUROPE: S&P Puts Low-B Ratings to Class F & G Notes I T A L Y ALITALIA SPA: AP Holding Seeks More Info on Italy's Stake ALITALIA SPA: TPG Capital May Rejoin Melee for Italy's Stake TISCALI S.P.A.: Acquiring Pipex’s Broadband & Voice Service Unit K A Z A K H S T A N CASPIAN SERVICE: Proof of Claim Deadline Slated for Aug. 21 DALYA LLP: Creditors Must File Claims Aug. 24 DARHAN & COMPANY: Claims Filing Period Ends Aug. 24 ELEVATOR UZUNKOL: Creditors' Claims Due on Aug. 17 IMANKARA LLP: Creditors' Claims Due on Aug. 24 IRINA LLP: Claims Registration Ends Aug. 22 MEDINA LLP: Proof of Claim Deadline Slated for Aug. 24 RUSTEM LTD: Creditors Must File Claims Aug. 24 STA GROUP: Claims Filing Period Ends Aug. 17 TURANALEM FINANCE: Fitch Puts BB+ Ratings to Upcoming Loan Issue K Y R G Y Z S T A N ARHILON LLC: Proof of Claim Deadline Slated for August 24 RIA RECK-CENTRE: Creditors Must File Claims by August 24 L U X E M B O U R G EVRAZ GROUP: Hikes Highveld Bid by 15%; Extends Offer Period THIEL LOGISTIK: Moody's Holds Junk Ratings on EUR130 Mln Notes N E T H E R L A N D S BASELL AF: Fitch Rates IDR at BB- on Termination of Merger LISTRINDO CAPITAL: S&P Rates US$425 Mln Sr. Secured Notes at BB- VICTORIA ACQUISITION: Moody's Withdraws B1 Corp. Family Rating VICTORIA ACQUISITION: S&P Withdraws B+ Ratings at Request R U S S I A AGRO-COMMERCE CJSC: Creditors Must File Claims by Aug. 23 BATEKO HOLDING: Creditors Must File Claims by July 23 COMPANY-AGRO OJSC: Creditors Must File Claims by July 23 DRUZHBA CJSC: Novosibirsk Bankruptcy Hearing Slated for Oct. 10 EUROKOMMERTS HOLDING: Moody's Puts B2 Foreign Currency Ratings EVRAZ GROUP: Hikes Highveld Bid by 15%; Extends Offer Period FERTILITY OJSC: Creditors Must File Claims by Aug. 23 GUSELNIKOVSKOE OJSC: Creditors Must File Claims by July 23 IVANOVO-FURNITURE CJSC: Asset Sale Slated for July 25 KASHKHATAUSKIY TINNED-FOOD: Claims Filing Deadline Set Aug. 23 KHARANKHOYSKAYA MINING: Creditors Must File Claims by July 23 KRASNAYA ZARYA: Creditors Must File Claims by July 23 LOCKO BANK: Fitch Rates IDR at B- with Stable Outlook NADYM-RECH-TRANS: Creditors Must File Claims by July 23 NIKAS LLC: Creditors Must File Claims by July 23 PETROGRAD CJSC: Creditors Must File Claims by Aug. 23 ROSNEFT OIL: To Transport Oil Via ESPO Pipeline by 2009 VOZROZHDENIE LLC: Creditors Must File Claims by July 23 WIMM-BILL-DANN: Moody's Lifts Rating to Ba3 on Good Performance YUNOST CJSC: Orel Bankruptcy Hearing Slated for Sept. 5 S P A I N MADRID RMBS: Moody's Rates EUR52.5 Million Series E Notes at Ba3 OWASYS: Private Equity Firms Rescue Company from Receivership S W E D E N AVNET INC: Unit Signs Distribution Agreement With Diodes Inc. S W I T Z E R L A N D BACCHUS DRINK: Graubunden Court Closes Bankruptcy Proceedings CARTAROLL JSC: Zurich Court Closes Bankruptcy Proceedings GYGAX NIK: Bern Court Closes Bankruptcy Proceedings INDEGO LLC: Lucerne Court Closes Bankruptcy Proceedings NEUMANN COMMUNICATION: Bern Court Closes Bankruptcy Proceedings PAUL OLLOZ: Creditors' Liquidation Claims Due July 31 RCCS LLC: Creditors' Liquidation Claims Due July 30 RS’ IMPORT-EXPORT: Creditors' Liquidation Claims Due July 31 SCHOCH-HOLZBAU JSC: Creditors' Liquidation Claims Due July 30 TRIVIT (SCHWEIZ): Creditors' Liquidation Claims Due July 30 WEBMINISTRY LLC: Creditors' Liquidation Claims Due July 30 WEIS + HOTTIGER JSC: Basel Court Closes Bankruptcy Proceedings U K R A I N E AGRICULTURAL INVEST: Creditors Must File Claims by July 19 AUGUST LLC: Claims Submission Deadline Set July 19 BRAVI-KHIMEK-SPORT: Claims Submission Deadline Set July 19 COMMUNE HEAT-MACHINERY: Creditors Must File Claims by July 19 DONETS LLC: Claims Submission Deadline Set July 19 GORLOVCHANKA OJSC: Claims Submission Deadline Set July 19 LIMIT LLC: Claims Submission Deadline Set July 19 PRESTIGE TRADE-SERVICE: Claims Submission Deadline Set July 19 SHEPETOVKA MOTORCAR 16807: Creditors Must File Claims by July 19 SODRUZHESTVO LLC: Claims Submission Deadline Set July 19 SOUTH CEREAL: Claims Submission Deadline Set July 19 U N I T E D K I N G D O M BARAKA POST: Paul Appleton Leads Liquidation Procedure BIKE SURGEON: Appoints Ian Bull as Liquidator COTSWOLD BUSINESS: Taps David Hughes to Liquidate Assets EMI GROUP: Terra Firma Extends GBP2.4 Bln. Cash Offer to July 19 EMU POINT: Names A. D. Kent Liquidator EUROSAIL-UK: Moody's Rates Class E1 Mortgage Notes at (P)Ba1 EUROSAIL-UK 07-3: Fitch Rates Classes E1c and ETc Notes at BB+ EUROSAIL-UK 2007-4BL: S&P Gives BB Rating to E1a and E1c Notes FOPP LTD: Gordon Montgomery In Talks to Buy Back Business FREESCALE SEMICONDUCTOR: Selling East Kilbride Site GATEWAY AUTOS: Hires Liquidator from Kay Johnson Gee GEORGE MAJOR: Brings Ian C. Brown to Liquidate Assets OAKLAND HOUSE: Calls In Liquidators from Mazars ORECK CORP: Challenging Liquidity Cues Moody's Junks Rating PROPERTY SOLUTIONS: Appoints C. B. Barrett as Liquidator TECHNIC TYRE: Joint Liquidators Take Over Operations TISCALI S.P.A.: Acquiring Pipex’s Broadband & Voice Service Unit WILMSLOW EQUIPMENT: Taps Liquidators from O’Hara & Co. ********* ============= A U S T R I A ============= MEDIPOOL-VITAL LLC: Court Orders Business Shutdown -------------------------------------------------- The Land Court of Wiener Neustadt entered June 18 an order shutting down the business of LLC MEDIPOOL-VITAL (FN 225071m). Court-appointed estate administrator Rupert Schenz 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. Rupert Schenz c/o Mag. Georg Rupprecht Enzersdorfer Strasse 4 2340 Moedling Austria Tel: 02236/86 53 43 Fax: 02236/865343-20 E-mail: schenz@lexacta.com Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 8 (Bankr. Case No 11 S 67/07z). Georg Rupprecht represents Dr. Schenz in the bankruptcy proceedings. PFEIFFER LLC: Claims Registration Period Ends Aug. 3 ---------------------------------------------------- Creditors owed money by LLC PFEIFFER (FN 40030v) have until Aug. 3 to file written proofs of claim to court-appointed estate administrator Dr. Heinrich Nagl at: Dr. Heinrich Nagl c/o Mag. Timo Ruisonger Pfarrgasse 5 3580 Horn Austria Tel: 02982/2278 Fax: 02982/4479 E-mail: dr.nagl.horn@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 8:30 a.m. on Aug. 22 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Horn, Austria, the Debtor declared bankruptcy on June 20 (Bankr. Case No. 9 S 28/07a). Timo Ruisonger represents Dr. Nagl in the bankruptcy proceedings. RAUSCHER & LAHER: Claims Registration Period Ends July 24 --------------------------------------------------------- Creditors owed money by OEG Rauscher & Laher (FN 282093v) have until July 24 to file written proofs of claim to court-appointed estate administrator Christian Kies at: Mag. Christian Kies Rathausplatz 8 3270 Scheibbs Austria Tel: 07482/44 222 Fax: 07482/44 222-4 E-mail: christian.kies@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on Sept. 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Kleinpoechlarn, Austria, the Debtor declared bankruptcy on June 20 (Bankr. Case No. 14 S 116/07k). ============= B E L G I U M ============= B-ARENA N.V./S.A.: Fitch Affirms Class F Notes at BB ---------------------------------------------------- Fitch Ratings has upgraded two tranches of Belgian RMBS transactions and affirmed a further 18 following a satisfactory performance review. The upgrades follow generally steady performance in the sector and growth in credit enhancement. Specific features of each transaction were taken into consideration in Fitch's review, including the different definitions of arrears and defaults, together with the presence or absence of a reserve fund in each transaction and the levels of credit enhancement available to each class of notes. Five of the seven transactions reviewed are well seasoned, having been issued between 1998 and 2004. The more recent deals, B-Arena N.V./S.A and Diamond Mortgage Finance 2006 N.V., were issued in 2006. Both upgraded tranches are from the seasoned transaction, Magritte 2004 B.V. and Permeke 2004 B.V., which closed in 2004. Growth in credit enhancement within some Belgian deals has been slow, due to the pro-rata pay-down of notes. Reserve funds commonly amortize, targeted to be the greater of predefined percentages of initial or current note balances and the outstanding junior notes. This amortization has the effect of producing a dramatic increase in credit enhancement several years after deals close. The exceptions to this are the relatively new deals Diamond Mortgage Finance, Magritte & Permeke and B-Arena, whose notes do not amortize pro-rata. In these deals, note redemption is often accelerated through excess spread to account for any defaulted loans in the portfolio, allowing for the accumulation of a certain degree of over- collateralization. Due to the high proportion of fixed-rate loans in the portfolios, prepayments tend to be steady unless interest rates are reduced, in which case spikes in the prepayment rate can occur. Prepayment penalties exist when borrowers transfer their mortgage to another lending institution. In such cases, borrowers must re-mortgage their loan at a cost of more than 1.5% of the secured amount. Therefore, increases in prepayments to date have followed substantial reductions in interest rates. In May 2007, Fitch affirmed the Kingdom of Belgium's long-term foreign and local currency Issuer Default Ratings at 'AA+' with Stable Outlook, reflecting the agency's expectation that the country will achieve its targeted budget surpluses and its commitment to further public debt reduction. Fitch has employed its credit cover multiple methodology in reviewing the deals to assess the level of credit support available to each class of notes. Rating actions are: Magritte 2004 B.V. and Permeke 2004 B.V.: -- Class A (XS0197191033) affirmed at 'AAA', Outlook Stable -- Class B (XS0197193088) upgraded to 'AA+' from 'AA', Outlook revised to Positive from Stable -- Class C (ISIN XS0197194565) upgraded to 'A+' from 'A', Outlook revised to Positive from Stable -- Class D (ISIN XS0197196859) affirmed at 'BBB', Outlook Stable MBS-3 V.B.S.: -- Class A3 (ISIN BE0002323922) affirmed at 'AAA', Outlook Stable -- Class B (ISIN BE0002331032) affirmed at 'AA+', Outlook Stable MBS-4 V.B.S.: -- Class A3 (ISIN BE0002330026) affirmed at 'AAA', Outlook Stable -- Class B (ISIN BE0002331032) affirmed at 'AA+', Outlook Stable EVE - Eerste Vlaamse Effectisering, N.V. Compartment SKV-1: -- Class A (ISIN BE0002334069) affirmed at 'AAA', Outlook Stable Compartment SKV-2 of EVE - Eerste Vlaamse Effectisering, N.V.: -- Class A (ISIN BE5955393780) affirmed at 'AAA', Outlook Stable Diamond Mortgage Finance 2006 N.V.: -- Class A (ISIN BE0002345172) affirmed at 'AAA', Outlook Stable -- Class B (ISIN BE0002346188) affirmed at 'AA', Outlook Stable -- Class C (ISIN BE0002347194) affirmed at 'A', Outlook Stable -- Class D (ISIN BE0002348200) affirmed at 'BBB', Outlook Stable B-Arena N.V./S.A.: -- Class A (ISIN BE0002350222) affirmed at 'AAA', Outlook Stable -- Class B (ISIN BE0002351239) affirmed at 'AA', Outlook Stable -- Class C (ISIN BE0002352244) affirmed at 'A', Outlook Stable -- Class D (ISIN BE0002353259) affirmed at 'BBB', Outlook Stable -- Class E (ISIN BE0002354265) affirmed at 'BBB-' (BBB minus), Outlook Stable -- Class F (ISIN BE0002355270) affirmed at 'BB', Outlook Stable =========== F R A N C E =========== STEELTECH DBT: Court Extends Receivership Period Until Sept. 12 -------------------------------------------------------------- The Commercial Court of Metz has extended the receivership period of Steeltech DBT until Sept. 12, 2007, Les Echos reports. Pascal Eisele, a trade union representative, said the extension will allow Steeltech's 170 employees to finalize an offer to acquire the company, Les Echos relates. Mr. Eisele hopes the commercial court will rule in their favor. Steeltech filed for bankruptcy at the start of 2007 after its German shareholder, Bavaria Maschinenbau Holding AG, demanded EUR9 million in dividend payment. Headquartered in Creutzwald, France, Steeltech DBT -- http://www.steeltech-france.com/-- manufactures and supplies hydraulic cylinders, steel structure and products for quarries and mineral industries. The company also provides solutions for stone crushing and transporting plugging and heavy materials. ============= G E R M A N Y ============= ALERIS INT'L: Inks Deal to Buy Wabash Alloys for US$194 Million --------------------------------------------------------------- Aleris International Inc. has entered into a definitive agreement to acquire Wabash Alloys from Connell Limited Partnership. Aleris will pay approximately US$194 million, with certain adjustments for working capital and other items. Aleris expects the acquisition to be neutral to accretive to its leverage ratio prior to any benefits from synergies, and anticipates financing the acquisition from a combination of cash flows from operations, additional draws of its revolving credit facility, or the incurrence of additional debt, which may include term credit facilities or bonds. "Closing is expected to occur in the third quarter and is subject to regulatory approvals and customary closing conditions," Steve Demetriou, chairman and chief executive officer, stated. "We believe the acquisition of Wabash Alloys will be an excellent strategic fit with Aleris's existing specification alloy operations." "The transaction provides outstanding opportunities to broaden our customer base, optimize processing capabilities and enhance our ability to meet the needs of our customers." Mr. Demetriou added. About Wabash Alloys Founded in 1958, Wabash Alloys-- http://www.wabashalloys.com/-- produces aluminum casting alloys and molten metal at its eight plants located in Canada, Mexico and the United States. About Aleris International Inc. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 50 production facilities worldwide, including China, Brazil, Germany, Mexico and Wales. * * * Standard & Poor's assigned Aleris International Inc. a B+ senior secured first-lien term loan rating and gave the company a '2' recovery rating after the report that the company increased the term loan by US$125 million. With the add-on, the total amount of the facility is now US$1.23 billion. COFINK BETEILIGUNGSGESELLSCHAFT: Claims Filing Ends Aug. 17 ----------------------------------------------------------- Creditors of COFINK Beteiligungsgesellschaft mbH have until Aug. 17 to register their claims with court-appointed insolvency manager Bernd Depping. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Sept. 12, 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 Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach 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: Bernd Depping Bluecherstrasse 30 41061 Moenchengladbach Germany Tel: 021612476710 Fax: 004921612476711 The District Court of Moenchengladbach opened bankruptcy proceedings against COFINK Beteiligungsgesellschaft mbH on July 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: COFINK Beteiligungsgesellschaft mbH Attn: Guenter Cordes and Dieter Fink, Managers Fuchsberg 4 a 41363 Juechen Germany IMMOPLAN IMMOBILIEN: Claims Registration Period Ends Aug. 29 ------------------------------------------------------------ Creditors of IMMOPLAN Immobilien- und Bautragergesellschaft mbH have until Aug. 29 to register their claims with court-appointed insolvency manager Joerg Bornheimer. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Sept. 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 14 Ground Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Bornheimer Sporergasse 7 50667 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against IMMOPLAN Immobilien- und Bautragergesellschaft mbH on July 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IMMOPLAN Immobilien- und Bautragergesellschaft mbH Attn: Andreas Dworak, Manager Holzhausen 2 51381 Leverkusen Germany PSIVIDA LIMITED: Inks Definitive Pacts to Sell ADS & Warrants ------------------------------------------------------------- On June 29, 2007, pSivida Limited entered into definitive agreements to raise approximately US$18.0 million (AU$21.3 million) in gross proceeds in a registered direct offering through the sale of its NASDAQ-traded ADSs and warrants to purchase ADSs, including US$6.5 million (AU$7.7 million) to Pfizer Inc. Pfizer's investment is pursuant to the terms of the Collaborative Research and License Agreement, dated as of April 3, 2007. The company estimates that net proceeds from the offering will be approximately US$16.3 million (AU$19.4 million), after deducting placement agent fees and estimated offering expenses. pSivida has entered into subscription agreements with primarily institutional investors pursuant to which it has agreed to sell a total of 14,402,000 units, for a purchase price of US$1.25 (AU$1.48) per unit. Each unit consists of: (i) one ADS, representing 10 ordinary shares; and (ii) one warrant to purchase 0.40 ADSs, with a warrant exercise price of US$1.65 (A$1.96) per ADS. Units will not be issued or certificated. The ADSs and warrants are immediately separable and will be issued separately. The warrants will be exercisable from the date of issuance through the fifth anniversary of the issuance. Cowen and Company, LLC, acted as lead placement agent and JMP Securities LLC acted as co-agent in this offering. The ADSs and warrants were offered under pSivida's effective shelf registration statement previously filed with the Securities and Exchange Commission on March 6, 2007, which registration statement became effective on March 9, 2007. First Tranche of ADS Offering Closed In a follow-up disclosure on July 6, pSivida said that it closed the first tranche of its registered direct offering. Net of placement agents' commissions, the company received approximately US$10.7 million (AU$12.5 million) in proceeds from the first tranche of the offering, which related to 9,202,000 units. About pSivida pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. PSIVIDA LIMITED: Enters Into Evaluation Deal w/ Med. Devise Firm ---------------------------------------------------------------- pSivida Limited entered into an evaluation agreement with an undisclosed large global medical device company to evaluate cardiovascular delivery of drugs using pSivida's drug delivery technologies. The agreement follows the expiration of a previous evaluation agreement with the same medical device company. About pSivida pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. TS CO.MIT: Fitch Rates EUR5.87 Million Class F Notes at B --------------------------------------------------------- Fitch Ratings has affirmed TS Co.mit One GmbH's EUR503 million floating-rate notes due 2013: -- EUR379.78 million Class A: 'AAA' -- EUR13.985 million Class B: 'AA' -- EUR12.959 million Class C: 'A' -- EUR9.5 million Class D: 'BBB' -- EUR10.5 million Class E: 'BB' -- EUR5.87 million Class F: 'B' This transaction is a cash securitization of loans certified by certificates of indebtedness to German small- and medium-size enterprises. The static portfolio comprises senior unsecured loan instruments that are either amortizing or have a bullet maturity. Fitch carried out a rating review of the transaction and found the structural protection sufficient to affirm the current ratings, despite some negative rating migration of the collateral portfolio and several loans being subject to principal deficiency events. During the collection period from March to June 2007, three loans, equal to 0.34% of the total portfolio balance, were debited to the principal deficiency ledger. Two of the PD events have been triggered by the respective loans being rated 5.8 (the lowest performing rating category) or below, on originator and servicer Commerzbank AG's internal rating scale, while the third PD event was triggered by the termination of the respective loan agreement. As of the June 2007 payment date the full balance of the PDL has been repaid. Additionally, 10.98% of the portfolio shows one or more breaches of financial covenants. This does not qualify as a PD event, but requires the companies to be assessed by Commerzbank for their ability to continue to pay interest and principal. To assess the credit quality of the portfolio, Fitch uses a mapping approach to Commerzbank's internal rating system. Based on the mapping, Fitch deems the average credit quality of the SME portfolio to be equivalent to a rating of 'BB+'/'BB', which is slightly worse than the average credit quality of 'BBB-'/'BB+' at closing. Further, the reserve account balance stands at EUR150,721 compared to EUR1.5 million at close, providing additional credit enhancement to the notes. The reserve fund amount is used together with interest and principal from the collateral assets to pay the items in the priority of payments and will be topped up, if any monies are left over after repaying the PDL debit balance and filling up the over-collateralization account to its required balance. Currently, the pro-rata test, which determines whether the notes amortize in pro-rata or sequential fashion, is breached. At the last two payment dates, in March and June 2007, principal collections have been allocated to Class A notes only. On the positive side, the portfolio balance represents 87% of the initial balance as of the June 2007 investor report. The notes have been paid down in line with the portfolio amortization: Class A represents 85% of its initial balance while Class B to F notes have amortized to 93% of their initial notional amount. This has led to an increase in the credit enhancement available to all notes. ============= I R E L A N D ============= RITCHIE (IRELAND): Coventry May Bid for Assets, Report Says ----------------------------------------------------------- Coventry First LLC is considering a bid for the life-insurance assets of Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. II, the bankrupt funds of Ritchie Capital Management Ltd., Chicago Tribune says. Ritchie Capital general counsel Bill Hobbs and Coventry general counsel Alex Seldin, however, could not be reached for comment. Attorney General Complaint As reported in the TCR-Europe on June 25, 2007, the Debtors disclose that in Oct. 26, 2006, the Attorney General for the State of New York filed a complaint against Coventry First, LLC, Montgomery Capital, Inc., The Coventry Group, Inc. and Reid S. Buerger. The complaint, titled "New York Attorney General v. Coventry First, LLC, et al." (No. 404620-06 N.Y. Sup. Ct.), alleged that Coventry engaged in various improper practices in its acquisition of policies from generally wealthy individuals of at 65 years in age. The Debtors relate that although they were not named as a party in the complaint, they had purchased the policies from an affiliate of Conventry prior to the complaint. The Debtors contend however, that as a result of the complaint: * they were unable to complete the planned securitization transaction, * their financial status and ability to obtain additional funding deteriorated; and * they were forced to initiate efforts to restructure their obligations and sell the policies. The Debtors further say that as a result of the complaint, Ritchie I entered into an amendment to its senior lending facility with ABN AMRO Bank N.V. providing for an increase in the Liquidity Facility to fund its monthly operational expenses, including payment of the Premiums and other amounts due under the Policies, through May, 2007. However, since the complaint, the market value of the policies diminished greatly and thus the Debtors were unable to successfully market these policies for sale nor to obtain funding necessary to maintain the policies until their natural maturation. The Ritchie I Complaint The Debtors also disclose that on May 2, 2007, a complaint was filed in the U.S. District Court for the Southern District of New York alleging that the Debtors and their investors were defrauded by certain companies and individuals affiliated with the Coventry-affiliated group of companies. In the complaint titled "Ritchie Capital Management, L.L.C., et al. v. Coventry First, LLC, et al." (No. 07-3494 U.S. D. Ct. S.D.N.Y.), the plaintiffs allege that Coventry partnered with them to invest in life insurance policies with a view toward re- selling them through a securitization transaction. The complaint further alleges that Coventry concealed from Ritchie Capital that the defendants were systematically defrauding the owners of the policies, and then further deceived Ritchie Capital as to the existence of an investigation by the Attorney General of New York into the defendants' misconduct. The complaint also argues that Moody's lost confidence in the health of the collateral -- i.e., the policies -- because it no longer believed that representations and warranties could be made by Ritchie I and Ritchie II to potential investors in the securitization of the nature and character provided to, and relied upon by, Ritchie I and Ritchie II in the purchase of the policies. Moody's, according to the complaint, no longer believed that the policies had been purchased in compliance with applicable legal requirements. Ritchie Capital is seeking damages of US$700 million against Coventry First. Under the Federal RICO Act, these damages could be three times the actual damages established at the trial and potentially amount to more than US$2 billion. DIP Financing Court records further show that contemporaneous with the filing of their voluntary chapter 11 petitions, the Debtors have requested for authority to incur DIP financing of up to US$30 million and use the prepition senior lender's cash collateral. The Debtors say that the DIP Financing and the cash collateral will be used to make premium payments, pay Life Settlement Policies' servicing fees and pay other operating expenses. About Coventry Headquartered in Philadelphia, Pennsylvania, Coventry First LLC -- http://www.coventry.com/-- is a secondary market leader for life settlements. About Ritchie Headquartered in Lisle, Illinois, Ritchie Capital Management Ltd. - http://www.ritchiecapital.com/-- is a private asset management firm founded in 1997 by former college football linebacker Thane Ritchie. The company has offices in New York and Menlo Park, California. About Ritchie (Ireland) Ritchie Risk-Linked Strategies Trading (Ireland), Ltd., and Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd., are Dublin-based 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' acquisition of the policies, and their contractual and other rights of payment related thereto, are based upon, among other things, a series of agreements providing for the purchase, financing, servicing and management of the Policies in anticipation of a securitization transaction. Ritchie Risk-Linked Strategies Trading (Ireland), Ltd., and Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd., filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of New York on July 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. LOCKO FINANCE: Fitch Puts B- Rating to Upcoming Loan Issue ---------------------------------------------------------- Fitch Ratings assigned Locko Finance p.l.c.'s upcoming issue of RUB-denominated limited recourse loan participation notes expected ratings of Recovery 'RR4' and Long-term 'B-'. Fitch has also assigned Russia's Locko-Bank a Long-term local currency Issuer Default Rating of 'B-' with Stable Outlook, in line with the bank's Long-term foreign currency IDR and Outlook. Locko Finance p.l.c.'s notes are to be used solely for financing a loan to Locko, whose other ratings are Short-term 'B', Individual 'D', Support '5' and National Long-term 'BB+(rus)'. The National Long-term Outlook is Stable. Locko has a Support Rating Floor of 'No Floor'. The final ratings are contingent upon receipt of final documentation conforming materially to information already received. Locko Finance p.l.c., an Ireland-domiciled public limited company, will only pay noteholders principal and interest received from Locko. It will charge certain rights and interests under the loan agreement to Deutsche Trustee Company Limited for the benefit of noteholders under a trust deed. Its claims under the loan agreement will rank at least equally with those of other senior unsecured creditors of Locko, except those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end of first quarter of 2007, retail deposits accounted for 17% of Locko's total liabilities, according to the bank's unaudited IFRS accounts. The loan agreement contains covenants restricting mergers and disposals by Locko and its material subsidiaries, as well as certain transactions between the bank and its affiliates. It also contains a cross default clause and a 'negative pledge' clause, the latter of which allows for up to 20% of the loan portfolio to be securitized by Locko and its subsidiaries. If such transactions are to be undertaken, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. Locko also commits to maintaining minimum total and Tier 1 Basel capital adequacy ratios of 12% and 8%, respectively, and a maximum ratio of exposure to any single borrower to 25% of net assets. Locko is a Moscow-based bank focusing primarily on SME lending. It has four full-scale branches, six additional outlets and eight cash centers in Moscow, as well as 11 regional credit outlets and four regional sales offices. The bank is owned by several individuals, none of whom has a stake of over 20%, and the IFC (15%) and East Capital Group (11%). TITAN EUROPE: S&P Puts Low-B Ratings to Class F & G Notes --------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR778.82 million commercial mortgage- backed floating-rate notes to be issued by Titan Europe 2007-3 Ltd., a special purpose entity incorporated in Ireland. At closing, Titan Europe 2007-3 will use the note issuance proceeds to acquire 19 loans, secured by real estate assets in the U.K. All the loans were originated by Credit Suisse. Of the loans, five feature additional debt in the form of subordinated B-notes. The servicer will make advances where necessary and applicable to cover shortfalls of interest, principal, and costs of hedging. All loans are secured by a comprehensive security package including first-ranking mortgages, assignment of all rental income, and other claims and borrower accounts. The security package will be assigned to the note trustee under the deed of charge and assignment. mong others, this will include a first-ranking fixed charge over the issuer's rights under the loan agreements, the hedging arrangements, and the intercreditor deeds, plus a first-ranking floating charge over the entire business of the issuer. Ratings List Titan Europe 2007-3 Ltd. GBP778.82 Million Commercial Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Amount Class Rating (Mln. EUR) ----- ------ -------- A1 AAA 463.04 X AAA 0.05 A2 AAA 115.76 B AA 54.39 C A 52.79 D BBB 53.19 E BBB- 12.00 F BB 23.30 G B 4.25 V NR 0.05 ========= I T A L Y ========= ALITALIA SPA: AP Holding Seeks More Info on Italy's Stake --------------------------------------------------------- AP Holding S.p.A., AirOne S.p.A. and Intesa-San Paolo S.p.A.'s acquisition vehicle, is seeking additional information relating to its bid for Italy's 39.9% stake in Alitalia S.p.A., Adrian Michaels writes for the Financial Times. AP Holding, FT relates citing government officials, has requested information regarding conditions that it wishes to impose should it win the bidding process. People privy to AirOne told FT that the sough-after information is critical and includes possible negotiations with Alitalia's unions. Among the requested information relates to the ability to restructure AZ Service, a firm half-owned by Alitalia that runs maintenance and ground operations. Bidders have said that AZ Service would be a heavy drain on any new owner of Alitalia but has an unclear status in the privatization process. AP Holding, however, stressed that it is committed to trying to strike a deal and has been holding talks with Alitalia's. Sources suggest that even if Italy relays the needed information, AP Holding might not have enough time to finalize its bid. Final bidders for Alitalia have until July 23, 2007, to submit binding offers. FT suggests that if AP Holding would not submit its bid on time, Italy may have to restart the entire sale process under different conditions. Bidders had dropped out of the bidding process apprehensive of the requirements set by the Italian government. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ALITALIA SPA: TPG Capital May Rejoin Melee for Italy's Stake ------------------------------------------------------------ The Italian government is holding talks with TPG Capital over a possible re-bid by the private equity firm for Italy's 39.9% stake in national carrier Alitalia S.p.A., Kevin Done and Paul Bompard write for the Financial Times. As reported in the TCR-Europe on June 1, 2007, the consortium of TPG Capital, MatlinPatterson Global Advisers LLC and Mediobanca S.p.A. withdrew its bid for Alitalia, saying it was not "in a position to comply with all of the requirements." The consortium described the requirements as "too complex and cryptic." A source close to the consortium told the Wall Street Journal then that the group was apprehensive it could not meet the July 2 deadline for submission of final offers and business plan. TPG Capital, FT reports, told the Italian government it may rejoin the bidding process if the rules of the process were changed. FT suggests that TPG has regrouped with former consortium partner MatlinPatterson. The TCR-Europe reported on June 22, 2007, that the Italian Finance Ministry has allowed MatlinPatterson to submit a binding offer Alitalia. Italy has extended to July 23, 2007, the deadline for final bidders to submit binding offers for its 39.9% stake in national carrier Alitalia, allowing potential buyers to review new information relating to the national carrier. As reported in the TCR-Europe on June 29, 2007, the consortium of OAO Aeroflot and Unicredito Italiano S.p.A. withdrew its bid for Alitalia after it and its advisors were not allowed access to "critical information with respect to the commercial and operational aspects of Alitalia’s business to confidently formulate a well supported business proposal to successfully restructure the Italian carrier." According to the Associated Press, Alitalia’s bidding process has been marred by concern over a lack of data and shifting guidelines. The Finance Ministry, while extending the bids deadline, reaffirmed the conditions for the sale. Offer Details As previously reported, the Italian Finance Ministry said the bids should include: -- details on financial sources; -- a EUR50 million bank guarantee; -- a definitive business plan; and -- details on a subsequent offer for minorities. The ministry also required the bidders to explain how their ownership structure will maintain access to Alitalia's portfolio of air traffic rights with other countries, Thomson Financial adds. Point System After receiving the bids, the ministry will assess the business according to the criteria set earlier. In a TCR-Europe report on Feb. 27, 2007, Alitalia's buyer must: -- retain Alitalia as Italy's national carrier for eight years, keeping its brand and logo during the period; -- keep Alitalia's headquarters in Italy; and -- ensure Alitalia has adequate level of local and international flights for five years. The five-year business plan must include job levels and will be binding for three years and can only be amended with the government's approval. The buyer also has to consult Alitalia's unions and sector trade associations if it wants to amend its staffing plans. The ministry will use the point system to assess the plans: 10 points for each of the 12 targets and parameters, including on growth, yields, and sustainability, Thomson Financial reports. A bidder must gain a minimum of 90 points to proceed to the next phase of tender -- the opening of financial offers for the Alitalia stake. The financial offers also have to meet a minimum valuation on Alitalia shares made by experts hired by the ministry, Thomson Financial adds. If the qualified bids are within five percent of each other, the ministry will allow the bidders to amend their offers. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. TISCALI S.P.A.: Acquiring Pipex’s Broadband & Voice Service Unit ---------------------------------------------------------------- Tiscali S.p.A. and Pipex Communications Plc have entered into an agreement for the acquisition of the broadband and voice division of Pipex by Tiscali U.K. Holdings Ltd. The enterprise value agreed for the acquisition is GBP210 million. The final equity value, which will be determined at closing, is subject to adjustment for net debt position, the level of working capital. The acquisition is subject to the approval of Pipex’s Shareholders and clearance by the U.K. Office of Fair Trading. The Division was expecting 2007 sales of over GBP300 million and an EBITDA of over GBP20 million on the basis of 1Q07 results and of Tiscali’s own estimates. The Division has in the region of one million active customers, 650,000 voice customers and 570,000 broadband customers -- of which, 250,000 are dual play -- and 100,000 are SME business customers and approximately 1,400 employees. Following the acquisition, Tiscali U.K. will have 1.9 million broadband customers. Tiscali U.K. has unbundled 800 exchanges, reaching 55% of U.K. homes with plans to extend this network to over 1,000 sites covering at least 65% of the U.K.’s addressable DSL market. In addition, Tiscali U.K. has rolled out an extensive next generation high bandwidth network to support both its business customers and new IPTV triple play product. “The acquisition of Pipex’s broadband and voice division further cements Tiscali’s position as a fully integrated telecom and media operator in the top league of the U.K. market and underlines our reputation as a major investor and innovator in the full range of broadband services, Tiscali U.K. CEO Mary Turner said. ”Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect costs efficiencies. Over a four-year period, we estimate cumulated synergies in the region of GBP150 million at EBITDA level ca GBP50 million to secure the synergies and efficiencies. In addition, we will be able to offer our new Pipex customers the full range of Tiscali’s compelling and innovative services including broadband, telephone and TV. This acquisition provides us with an even greater opportunity in rolling out our double and triple play offers.” “The Board of Pipex is pleased to agree to the sale of the voice and broadband division, which we feel recognizes the strong market position we have built over the last three years. Tiscali’s commitment to investment in LLU, along with the new TV services it is introducing will offer our existing customers value and choice in the future,” Pipex Chairman Peter Dubens. The acquisition will be financed through a EUR650 million debt facility underwritten by Intesa Sanpaolo and JP Morgan. This facility will replace substantially all outstanding financial debt of the Tiscali Group and may be partially refinanced by debt capital markets instruments of approximately EUR400 million and it could also be partially refinanced by an equity increase of up to EUR150 million which is expected to be resolved upon in late September 2007, in all events depending on market conditions. “Upon completion of the Tiscali Group’s strategic refocusing and delivery of the Group’s financial targets, the acquisition of Pipex’s broadband and voice division represents the first step in the new development phase,” Tiscali S.p.A. CEO Tommaso Pompei said. “In the U.K., our position will become even stronger as our growth accelerates. It will increase our broadband market share to approximately 15%, place Tiscali as one of the largest alternative broadband, voice and media provider in the U.K. and further complement the recent acquisition of Video Networks Ltd. Following the acquisition, the 2008 net income and free cash flow generation targets are confirmed, with a net financial position to EBITDA ratio expected to remain under three times.” Rothschild and Banca IMI acted as financial advisors of Tiscali in the acquisition of the Division. About Tiscali Headquartered in Cagliari, Italy, Tiscali S.p.A. -- http://www.tiscali.com/-- offers Internet access in the country. The group also operates in other European countries, serving more than seven million subscribers, of which over 1.5 million are broadband users. It has sold non-core assets to raise money to cover a EUR250 million bond that matured in July. Former chairman and founder Renato Soru owns almost 30% of the company. As reported in the TCR-Europe on March 22, 2007, the company registered EUR136.16 million in net losses on EUR678.48 million in net revenues for the full year ended Dec. 31, 2006, compared with EUR12.81 million net losses on EUR530.85 billion in revenues for full year 2005. As of Dec. 31, 2006, Tiscali had EUR1.23 billion in total assets, EUR960 million in total liabilities and EUR270 million in total shareholders' equity. As reported in the TCR-Europe on Oct. 13, 2006, Tiscali's Board of Directors approved a three-year plan for 2007-2010, which calls for the concentration of its core business in Italy and in the United Kingdom. * * * As reported in the TCR-Europe on June 27, 2007, Fitch Ratings has upgraded Italy-based Tiscali S.p.A.'s Long-term Issuer Default rating to 'B-' from 'CCC' and removed it from Rating Watch Positive. Fitch said a stable outlook is assigned. =================== K A Z A K H S T A N =================== CASPIAN SERVICE: Proof of Claim Deadline Slated for Aug. 21 ----------------------------------------------------------- LLP Caspian Service Company has declared insolvency. Creditors have until Aug. 21 to submit written proofs of claims to: LLP Caspian Service Company Amangeldy Str. 1 Almaty Kazakhstan DALYA LLP: Creditors Must File Claims Aug. 24 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Dalya insolvent. Creditors have until Aug. 24 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 DARHAN & COMPANY: Claims Filing Period Ends Aug. 24 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Darhan & Company insolvent. Creditors have until Aug. 24 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 ELEVATOR UZUNKOL: Creditors' Claims Due on Aug. 17 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared CJSC Elevator Uzunkol insolvent. Creditors have until Aug. 17 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan IMANKARA LLP: Creditors' Claims Due on Aug. 24 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Imankara insolvent. Creditors have until Aug. 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 IRINA LLP: Claims Registration Ends Aug. 22 ------------------------------------------- The Tax Committee of Almaty has declared LLP Irina (RNN 531400001600) insolvent. Creditors have until Aug. 22 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (32822) 24-19-77 MEDINA LLP: Proof of Claim Deadline Slated for Aug. 24 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Medina insolvent. Creditors have until Aug. 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 RUSTEM LTD: Creditors Must File Claims Aug. 24 ---------------------------------------------- The Tax Committee of Almaty has declared LLP Rustem Ltd. (RNN 531400002246) insolvent. Creditors have until Aug. 24 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (32822) 24-19-77 STA GROUP: Claims Filing Period Ends Aug. 17 -------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Sta Group insolvent. Creditors have until Aug. 17 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan TURANALEM FINANCE: Fitch Puts BB+ Ratings to Upcoming Loan Issue ---------------------------------------------------------------- Fitch Ratings has assigned TuranAlem Finance B.V.'s upcoming US$-denominated 30-year eurobond issue an expected 'BB+' Long- term rating. The issue is to be guaranteed by Kazakhstan's Bank TuranAlem, rated Long-term foreign currency Issuer Default 'BB+'/Positive Outlook, Long-term local currency IDR 'BBB-'/Stable Outlook, Short-term foreign currency IDR 'B', Short-term local currency IDR 'F3', Individual 'C/D', Support '3' and Support Rating Floor 'BB+'. The issue is to be made within the framework of BTA's and TAF's US$8 billion global medium-term note program. The final rating of the issue is contingent upon the receipt of final documentation conforming materially to information already received. Bank TuranAlem is one of the two largest commercial banks in Kazakhstan, with top three positions in all major markets segments. It has developed a network of affiliate banks in other CIS countries. In December 2006 BTA completed the acquisition of a majority stake in Kazakhstan's Temirbank (IDR 'BB-'/Outlook Stable). BTA's ownership structure is not yet transparent, but Fitch understands that the bank is controlled by several Kazakhstani shareholders. =================== K Y R G Y Z S T A N =================== ARHILON LLC: Proof of Claim Deadline Slated for August 24 --------------------------------------------------------- LLC Arhilon (INN 0280720610015) has declared insolvency. Creditors have until Aug. 24 to submit written proofs of claim to: LLC Arhilon Ken-say Savay Karasuuisky District Osh Kyrgyzstan RIA RECK-CENTRE: Creditors Must File Claims by August 24 -------------------------------------------------------- LLC Ria Reck-Centre Video has declared insolvency. Creditors have until Aug. 24 to submit written proofs of claim to: LLC Ria Reck-Centre Video Toktogul Str. 77/104 Bishkek Kyrgyzstan Tel: (+996 312) 62-25-00 =================== L U X E M B O U R G =================== EVRAZ GROUP: Hikes Highveld Bid by 15%; Extends Offer Period ------------------------------------------------------------ Evraz Group S.A., following its disclosure on June 4, 2007, of an offer to acquire shares in Highveld Steel and Vanadium Corporation Ltd., has decided to: -- increase the consideration payable to Highveld shareholders from the ZAR equivalent of US$11.40 per Highveld share, to ZAR93, which represents around 15% increase to the previous offer price. Highveld shareholders who accepted the offer prior to this increase in the consideration will be paid the increased consideration. -- extend the offer till 5:00 p.m. (South African time) on Aug. 6, 2007, unless the date is extended by Evraz in its sole and absolute discretion, in accordance with the Securities Regulation Code on Takeovers and Mergers and any other applicable laws and regulations. All amended dates will be released on the Securities Exchange News Service of the JSE Limited, over a U.K. Regulatory Information Service and in the press. As reported in TCR-Europe on July 11, 2007, Evraz Group S.A. extended its offer to buy out shareholders of Highveld Steel & Vanadium Ltd. until further notice, Carli Lourens and Maria Kolesnikova wrote for Bloomberg News. Evraz said shareholders holding 57,647 of Highveld shares, representing 0.1% of the South African firm's total stock, had accepted the offer. The TCR-Europe reported on June 5, 2007, that Evraz made an offer to acquire the entire issued share capital of Highveld for a consideration of US$11.40 per Highveld share. Highveld's board of directors, however, rejected the offer and likewise advised shareholders to do the same. "Only if they are neither prepared, nor in a position, to bear the risk of the uncertainties detailed, should they accept the offer, otherwise they should not accept the offer," the board said in a circular to shareholders. The board noted that Evraz's ZAR82.99 per share offer was lower than the ZAR93 per share valuation made by independent adviser Standard Bank, Reuters related, citing Highveld's Web site. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Evraz Group S.A. and assigned a Ba3 Probability-of- Default Rating. Moody's also assigned these ratings: * Issuer: Evraz Group S.A. Projected Old Debt New Debt LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 8.25% Senior Unsecured Regular Bond/ Debenture Due 2015 B2 B2 LGD5 88% * Issuer: Evraz Securities S.A. Old Debt New Debt LGD Loss Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 10.875% Senior Unsecured Regular Bond/ Debenture Due 2009 B1 Ba3 LGD3 47% In November 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Standard & Poor's rated Evraz Group's 8-1/4% notes due November 2015 at B+. THIEL LOGISTIK: Moody's Holds Junk Ratings on EUR130 Mln Notes -------------------------------------------------------------- Moody's Investors Service changed the outlook on all ratings of Thiel Logistik A.G. to stable from negative and at the same time has affirmed the existing B2 corporate family rating and the Caa1 (LGD6, 90%) rating on the senior subordinated notes due 2012. "The rating action is based on the stabilization of the company's operating performance over recent months and on Moody's expectation that key credit metrics are likely to remain at current level for the intermediate term as growth and operating margins improvements in the Air and Ocean and Delacher divisions are likely to compensate weaker performances in the Furniture and Sudkraft divisions", said Paolo Leschiutta, lead analyst at Moody's Investors Service for Thiel AG. "Although in Moody's view, operating margins are likely to remain at lower levels than previously anticipated allowing only moderate flexibility to absorb potential shocks in the market as turnaround is not completed yet, the company should continue to benefit from a pick up in the German economy and growth trends in the logistic service business", continued the analyst. Moody's will continue to monitor the company's operating margins and cash flow generation development as increasing competition as a result of continuing consolidation in the market might cause pressure on the Group's profitability. Upward momentum on the rating could arise as a result of sustainable improvement in operating performance towards industry average and in line with the company's medium term target of 3%, on an EBIT basis, and an improvement of the financial leverage, measured as Debt/EBITDA, below 4x on an ongoing basis. Contrary, any erosion in operating performance below current level due to delay in the restructuring program or increasing negative pressure in the industry would exert downward pressure on the rating. In addition an increase in financial leverage towards 6x, a deteriorating liquidity profile and/or a contraction of the company interest coverage, measured as EBIT/Interest towards 1x would result in a rating downgrade. Ratings affected by Monday's action are: -- Corporate family rating affirmed at B2, -- The EUR130 million 8% Senior Subordinated Notes due 2012 affirmed at Caa1 (LGD6, 90%), Thiel Logistik AG, based in Grevenmacher, Luxembourg, is a medium-sized provider of specialist and traditional logistics services, operating primarily in the Central and Eastern European markets (Germany, Austria and Switzerland) and Asia (mainly China). The group specializes in providing entire supply chain logistics services and solutions including: overland road, rail, air transportation services and sea freight services; warehousing and supply chain management; design and execution of customized logistics solutions. Effectively July 1, 2007 Thiel re-organized its management structure and subsequently bundled its activities in the three segments: Solutions, Air&Ocean and Road&Rail. Revenues stood at EUR1,891 million and EUR507,4 at FYE December 2006 and first quarter ending March 2007, respectively. ===================== N E T H E R L A N D S ===================== BASELL AF: Fitch Rates IDR at BB- on Termination of Merger ---------------------------------------------------------- Fitch Ratings affirmed Netherlands-based Basell AF SC's Long- term Issuer Default Rating at 'BB-', senior secured rating at 'BB+' and senior notes at 'B+' and removed them from Rating Watch Negative. The Short-term IDR is affirmed at 'B'. This follows Huntsman Corporation's July 12, 2007 termination of its merger agreement with Basell dated June 26, 2007. A Stable Outlook is assigned to the Long-term IDR. On June 26, 2007, Basell and US-based chemicals and pigments producer Huntsman jointly announced the signing of a definitive agreement of Basell to acquire Huntsman. The transaction was valued at around US$9.6 billion, including the assumption of Huntsman's debt. Following this announcement, Huntsman received a merger proposal by Hexion Specialty Chemicals, Inc., an entity owned by an affiliate of Apollo Management L.P., which resulted in Huntsman terminating the agreement with Basell and in turn agreeing to a definitive merger agreement with Hexion, based on a transaction value of US$10.6 billion including assumed debt. Fitch understands that Basell confirms its offer (and therefore does not intend to increase its original offer in excess of Hexion's). Thus, Basell is entitled to receive a break-up fee of US$200 million due to the termination of the merger agreement by Huntsman. Fitch sees Basell's business performance improving and notes that the company has de-leveraged its balance sheet considerably. However, the ratings are constrained by Fitch's expectation that Basell will continue to aim for external growth by acquisitions, as seen in its sizeable bids for GE's Plastics unit and for Huntsman. While Fitch views M&A in general as event risk to be evaluated on a case-by-case basis, Basell's ambition for external growth increases the likelihood for a re- leveraging of Basell's balance sheet, which could challenge its ratings. LISTRINDO CAPITAL: S&P Rates US$425 Mln Sr. Secured Notes at BB- ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating on the long-term US$425 million senior secured notes to be issued by Listrindo Capital B.V., a wholly owned subsidiary incorporated in The Netherlands, established solely for the purpose of issuing this debt instrument. The notes will be irrevocably and unconditionally guaranteed by Cikarang. The ratings are subject to final documentation. At the same time, Standard & Poor's assigned its 'BB-' corporate credit ratings on Indonesia's PT Cikarang Listrindo, an Indonesian natural gas-fired electricity power producer. The outlook is stable. The ratings reflect Cikarang's aggressive financial profile and tariff-related uncertainties. The ratings also reflect the company's relatively weak contractual structure and its exposure to project completion risk. These weaknesses are somewhat offset by Cikarang's diverse customer base and by the regulatory protection that the company enjoys. Cikarang operates a natural gas-fired combined cycle power plant with an installed capacity of 409MW. The company sells electricity to several off-takers, including PT Perusahaan Listrik Negara (PLN; foreign currency BB-/Stable/--; local currency BB/Stable/--) and private industrial estates within a designated licensed area. For the financial year ended December 2006, Cikarang reported revenues of IDR1.5 trillion with net income of about IDR309 billion. Standard & Poor's recognizes the importance of the new gas procurement and of the additional electricity off-take contracts with PLN, and expects such contracts to be eventually signed. However, if by the end of 2007, the PLN contract is not signed, in line with the terms and conditions of the existing contract, Cikarang could be exposed to risks relating to noncontractual cash flows and potential excess generating capacity. This could place a downward pressure on the company's ratings or outlook. VICTORIA ACQUISITION: Moody's Withdraws B1 Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn the B1 corporate family rating assigned to Victoria Acquisition III BV. Moody's has withdrawn Victoria Acquisition's rating at the request of the company. This follows the redemption of the 7.875% Senior Subordinated Notes issued by Victoria Acquisition III B.V. due 2014. Based in Amsterdam, the Netherlands, Victoria Acquisition III is the indirect parent of Maxeda B.V., the leading non-food retailer in the Netherlands with operations in several other European countries. VICTORIA ACQUISITION: S&P Withdraws B+ Ratings at Request --------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B+' long-term corporate credit rating on Victoria Acquisition III B.V. -- the parent company of Dutch nonfood retailer Maxeda -- at the company's request. The 'B-' rating assigned to the group's senior unsecured notes maturing 2014 was also withdrawn. As part of the group's refinancing, all rated issues have been delisted. =========== R U S S I A =========== AGRO-COMMERCE CJSC: Creditors Must File Claims by Aug. 23 --------------------------------------------------------- Creditors of CJSC Agro-Commerce (TIN 7404025290) have until Aug. 23 to submit proofs of claim to: A. Fazlyev Insolvency Manager Post User Box 220 Ufa 450080 Bashkortostan Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-4961/2007-32-54. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: CJSC Agro-Commerce Zlatoust Russia BATEKO HOLDING: Creditors Must File Claims by July 23 ----------------------------------------------------- Creditors of CJSC Bateko Holding (TIN 7710395010) have until July 23 to submit proofs of claim to: V. Klimenko Temporary Insolvency Manager Post User Box 21 121467 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A40-21112/07-73-99 B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Bateko Holding Building 1 Al. Nevskogo Str. 19/25 125047 Moscow Russia COMPANY-AGRO OJSC: Creditors Must File Claims by July 23 -------------------------------------------------------- Creditors of OJSC Commerce Grain Company-Agro have until July 23 to submit proofs of claim to: V. Lyutov Insolvency Manager Lenina Str. 1a Arbuzovka Station Pavlovskiy 659006 Altay Russia The Arbitration Court of Altay commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-1378/07-B. The Debtor can be reached at: OJSC Commerce Grain Company–Agro Lenina Str. 1a Arbuzovka Station Pavlovskiy Altay Russia DRUZHBA CJSC: Novosibirsk Bankruptcy Hearing Slated for Oct. 10 --------------------------------------------------------------- The Arbitration Court of Novosibirsk will convene on Oct. 10 to hear the bankruptcy supervision procedure on CJSC Druzhba. The case is docketed under Case No. A45-2426/07-29/7. The Temporary Insolvency Manager is: Y. Petrushenkov Post User Box 153 630001 Novosibirsk Russia The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: CJSC Druzhba Sokur Moshkovskiy 633121 Novosibirsk Russia EUROKOMMERTS HOLDING: Moody's Puts B2 Foreign Currency Ratings -------------------------------------------------------------- Moody's Investors Service assigned these global scale ratings to Eurokommerz Holding Limited: B2 long-term and Not Prime short- term foreign currency and local currency issuer ratings. The outlook for the long-term ratings is stable. At the same time, Moody's Interfax Rating Agency has assigned an A3.ru long-term national scale credit rating to Eurokommerz. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. According to Moody's and Moody's Interfax, the B2/NP global scale ratings reflect Eurokommerz' global default and loss expectation, while the A3.ru national scale rating reflects the standing of the company's credit quality relative to its domestic peers. The assigned ratings reflect the company's sound market positions in its target segments with reasonable growth potential, management's ability to develop the company and its market positions, sound profitability, moderate risk appetite, good asset quality and adequate liquidity management and capitalization. However, the ratings are constrained by the potential for rapid growth to give rise to credit and operational risks, the company's limited history of operations in its current shape and competitive operating environment, substantial concentrations on both sides of the balance sheet, substantial FX and interest rate risks as well as uncertainty with regard to futures sources of capitalization over the longer term. In addition, a high reliance on wholesale market funding and lack of regulation of the factoring industry are also negative factors. The ratings do not incorporate any element of the support from either the Russian authorities or the company's shareholders and are therefore based on the Eurokommerz' baseline credit assessment. Moody's notes that a positive track record in the competitive operating environment, with good financial indicators and franchise development, could have positive implications for the ratings. Conversely, significant asset quality problems as a result of the rapid growth and a potential relaxation of risk criteria in response to the market competition could lead to a downgrade. Liquidity issues related to closure of access to the wholesale markets would also be likely to exert negative pressure. However, it is not expected in the near term. Based in Moscow, Russia, Eurokommerz is a leading factoring company which also has a wide distribution network in the Russian regions. It reported total consolidated assets of US$455.7 million and total equity of US$86.9 million under IFRS at end-first quarter 2007. EVRAZ GROUP: Hikes Highveld Bid by 15%; Extends Offer Period ------------------------------------------------------------ Evraz Group S.A., following its disclosure on June 4, 2007, of an offer to acquire shares in Highveld Steel and Vanadium Corporation Ltd., has decided to: -- increase the consideration payable to Highveld shareholders from the ZAR equivalent of US$11.40 per Highveld share, to ZAR93, which represents around 15% increase to the previous offer price. Highveld shareholders who accepted the offer prior to this increase in the consideration will be paid the increased consideration. -- extend the offer till 5:00 p.m. (South African time) on Aug. 6, 2007, unless the date is extended by Evraz in its sole and absolute discretion, in accordance with the Securities Regulation Code on Takeovers and Mergers and any other applicable laws and regulations. All amended dates will be released on the Securities Exchange News Service of the JSE Limited, over a U.K. Regulatory Information Service and in the press. As reported in TCR-Europe on July 11, 2007, Evraz Group S.A. extended its offer to buy out shareholders of Highveld Steel & Vanadium Ltd. until further notice, Carli Lourens and Maria Kolesnikova wrote for Bloomberg News. Evraz said shareholders holding 57,647 of Highveld shares, representing 0.1% of the South African firm's total stock, had accepted the offer. The TCR-Europe reported on June 5, 2007, that Evraz made an offer to acquire the entire issued share capital of Highveld for a consideration of US$11.40 per Highveld share. Highveld's board of directors, however, rejected the offer and likewise advised shareholders to do the same. "Only if they are neither prepared, nor in a position, to bear the risk of the uncertainties detailed, should they accept the offer, otherwise they should not accept the offer," the board said in a circular to shareholders. The board noted that Evraz's ZAR82.99 per share offer was lower than the ZAR93 per share valuation made by independent adviser Standard Bank, Reuters related, citing Highveld's Web site. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Evraz Group S.A. and assigned a Ba3 Probability-of- Default Rating. Moody's also assigned these ratings: * Issuer: Evraz Group S.A. Projected Old Debt New Debt LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 8.25% Senior Unsecured Regular Bond/ Debenture Due 2015 B2 B2 LGD5 88% * Issuer: Evraz Securities S.A. Old Debt New Debt LGD Loss Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ------- 10.875% Senior Unsecured Regular Bond/ Debenture Due 2009 B1 Ba3 LGD3 47% In November 2006, Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s Issuer Default and senior unsecured ratings at BB and its Short-term rating at B. At the same time, Fitch has affirmed the ratings of Mastercroft Ltd., Evraz's core subsidiary with most of its assets concentrated in Russia- at Issuer Default BB and Short-term B. Evraz Securities SA's senior unsecured rating is affirmed at BB. Fitch said the Outlooks on the Issuer Default ratings are Stable. Standard & Poor's rated Evraz Group's 8-1/4% notes due November 2015 at B+. FERTILITY OJSC: Creditors Must File Claims by Aug. 23 ----------------------------------------------------- Creditors of OJSC Agricultural Company Fertility (TIN 5632006920/561201001) have until Aug. 23 to submit proofs of claim to: D. Pakhomov Insolvency Manager Gaya Str. 23a 460000 Russia Russia Tel: (3532) 78-38-44 The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-3284/07-14 GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Agricultural Company Fertility 9th January Str. 64 460046 Orenburg Russia GUSELNIKOVSKOE OJSC: Creditors Must File Claims by July 23 ---------------------------------------------------------- Creditors of OJSC Guselnikovskoe have until July 23 to submit proofs of claim to: Y. Gomerov Insolvency Manager Post User Box 325 Krasnoobsk 630501 Novosibirsk Russia The Arbitration Court of Novosibirsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-3687/07-43/23. The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: OJSC Guselnikovskoe Guselnikovo Iskitinskiy Novosibirsk Russia IVANOVO-FURNITURE CJSC: Asset Sale Slated for July 25 ----------------------------------------------------- Sh. Fazailov, the bidding organizer for CJSC Ivanovo-Furniture, will open a public auction for the company's properties at 10:00 a.m. on July 25 at: Sh. Fazailov 101-V Mira Pr. Moscow Russia Interested participants have to deposit an amount to: CJSC Ivanovo-Furniture Settlement Account 40702810217000101383 Correspondent Account 30101810000000000608 BIK 042406608 ACB SB RF 8639 Bidding documents have until July 20 to be submitted to: Sh. Fazailov Bidding Organizer 101-V Mira Pr. Moscow Russia The Debtor can be reached at: Sh. Fazailov Bidding Organizer 101-V Mira Pr. Moscow Russia KASHKHATAUSKIY TINNED-FOOD: Claims Filing Deadline Set Aug. 23 -------------------------------------------------------------- Creditors of CJSC Insurance Company Petrograd have until Aug. 23 to submit proofs of claim to: M. Kushkhov Insolvency Manager Lenina Pr. 36 Nalchik 360022 Kabardino Balkariya Russia The Arbitration Court of Kabardino Balkariya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20-1202/06. The Debtor can be reached at: M. Kushkhov Insolvency Manager Lenina Pr. 36 Nalchik 360022 Kabardino Balkariya Russia KHARANKHOYSKAYA MINING: Creditors Must File Claims by July 23 ------------------------------------------------------------- Creditors of CJSC OJSC Kharankhoyskaya Mining Company have until July 23 to submit proofs of claim to: R. Erbanov Insolvency Manager Post User Box 2875 Ulan-Ude 670033 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10-5514/06. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: CJSC OJSC Kharankhoyskaya Mining Company Khoronkhoj Kyakhtinskiy Bashkortostan Russia KRASNAYA ZARYA: Creditors Must File Claims by July 23 ----------------------------------------------------- Creditors of OJSC Krasnaya Zarya have until July 23 to submit proofs of claim to: Y. Mesheryakov Insolvency Manager Apartment 64 Belyakova Str. 23 390015 Ryazan Russia The Arbitration Court of Ryazan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-489/2004. The Court is located at: The Arbitration Court of Ryazan Pochtovaya Str. 43/44 Ryazan Russia The Debtor can be reached at: OJSC Krasnaya Zarya Korablino Ryazan Russia LOCKO BANK: Fitch Rates IDR at B- with Stable Outlook ----------------------------------------------------- Fitch Ratings assigned Locko Finance p.l.c.'s upcoming issue of RUB-denominated limited recourse loan participation notes expected ratings of Recovery 'RR4' and Long-term 'B-'. Fitch has also assigned Russia's Locko-Bank a Long-term local currency Issuer Default Rating of 'B-' with Stable Outlook, in line with the bank's Long-term foreign currency IDR and Outlook. Locko Finance p.l.c.'s notes are to be used solely for financing a loan to Locko, whose other ratings are Short-term 'B', Individual 'D', Support '5' and National Long-term 'BB+(rus)'. The National Long-term Outlook is Stable. Locko has a Support Rating Floor of 'No Floor'. The final ratings are contingent upon receipt of final documentation conforming materially to information already received. Locko Finance p.l.c., an Ireland-domiciled public limited company, will only pay noteholders principal and interest received from Locko. It will charge certain rights and interests under the loan agreement to Deutsche Trustee Company Limited for the benefit of noteholders under a trust deed. Its claims under the loan agreement will rank at least equally with those of other senior unsecured creditors of Locko, except those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end of first quarter of 2007, retail deposits accounted for 17% of Locko's total liabilities, according to the bank's unaudited IFRS accounts. The loan agreement contains covenants restricting mergers and disposals by Locko and its material subsidiaries, as well as certain transactions between the bank and its affiliates. It also contains a cross default clause and a 'negative pledge' clause, the latter of which allows for up to 20% of the loan portfolio to be securitized by Locko and its subsidiaries. If such transactions are to be undertaken, Fitch comments that the nature and extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. Locko also commits to maintaining minimum total and Tier 1 Basel capital adequacy ratios of 12% and 8%, respectively, and a maximum ratio of exposure to any single borrower to 25% of net assets. Locko is a Moscow-based bank focusing primarily on SME lending. It has four full-scale branches, six additional outlets and eight cash centers in Moscow, as well as 11 regional credit outlets and four regional sales offices. The bank is owned by several individuals, none of whom has a stake of over 20%, and the IFC (15%) and East Capital Group (11%). NADYM-RECH-TRANS: Creditors Must File Claims by July 23 ------------------------------------------------------- Creditors of CJSC Nadym-Rech-Trans have until July 23 to submit proofs of claim to: V. Vinogradov Temporary Insolvency Manager 50 Let Profsoyuzov Str. 61 644065 Omsk Russia The Arbitration Court of Yamalo-Nenetskiy will convene on Sept. 18 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A81-1667/07. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Autonomous Russia The Debtor can be reached at: CJSC Nadym-Rech-Trans Naberezhnay Orudzheva 20, 2 Nadym Yamalo-Nenetskiy Russia NIKAS LLC: Creditors Must File Claims by July 23 ------------------------------------------------ Creditors of LLC Zabaykalskoe Timber Industry Company Nikas (TIN 7504001221) have until July 23 to submit proofs of claim to: I. Dolgikh Insolvency Manager Post User Box 604 672010 Chita Russia The Arbitration Court of Chita commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A78-1599/2007 1-210. The Debtor can be reached at: LLC Zabaykalskoe Timber Industry Company Nikas Kurnatovskogo Str. 82 672012 Chita Russia PETROGRAD CJSC: Creditors Must File Claims by Aug. 23 ----------------------------------------------------- Creditors of CJSC Insurance Company Petrograd have until Aug. 23 to submit proofs of claim to: P. Tarasov Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-34751/2006. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Insurance Company Petrograd Premise 5n Letter A Gorokhovaya 7/15 St. Petersburg Russia ROSNEFT OIL: To Transport Oil Via ESPO Pipeline by 2009 ------------------------------------------------------- OAO Rosneft Oil Co. will transport 25 million metric tons of oil through OAO Rosneft's Eastern Siberian-Pacific Ocean pipeline in 2009, Kommersant reports. Transneft president Semen Vainshtok confirmed receiving Rosneft's application to pump 25 million tons of oil through 30-million metric ton capacity ESPO in 2009, Kommersant relates. Transneft will distribute the unused capacity to other firms. The state-owned companies have yet to concur on the transit rate, though Rosneft may agree to low profits from ESPO, which is largely viewed as a political project, Kommersant relates citing experts. Experts added that Transneft will charge no lower than US$54 per metric ton to make profits. Transneft expects to complete ESPO's construction on December 2007. The pipeline operator also plans to hike ESPO's capacity to 36 million metric tons after 2009 in anticipation of higher demand. About Transneft Headquartered in Moscow, Russia, OAO Transneft -- http://www.transneft.ru/-- operates one of the largest networks of oil pipelines in the world. The company moves crude oil through more than 30,000 miles of pipeline stretching across Eastern Europe and Asia. Transneft operates a transportation network consisting of more than 30,000 miles of pipeline, about 330 pump stations, and 934 tankers capable of storing more than 13 million cu. meters of petroleum product. The company transports about 93% of the oil produced in Russia. 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. * * * As of July 17, 2007, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. Outlook is positive. VOZROZHDENIE LLC: Creditors Must File Claims by July 23 ------------------------------------------------------- Creditors of LLC Vozrozhdenie (TIN 6164221497) have until July 23 to submit proofs of claim to: V. Zotyev Temporary Insolvency Manager Nakhichevanskiy Per. 64 344000 Rostov-na-Donu Russia The Arbitration Court of Rostov will convene at 11:50 a.m. on Oct. 12 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A53-4103/07-S1-8. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Vozrozhdenie Nakhichevanskiy Per. 64 Rostov-na-Donu Russia WIMM-BILL-DANN: Moody's Lifts Rating to Ba3 on Good Performance --------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating of Wimm-Bill-Dann Foods OJSC to Ba3 from B1. The outlook is stable. The upgrade reflects: (i) the company's generally strong operating performance in FY 2006, with revenue growth of 26.4% supported by organic growth, with selling prices benefiting from the sales mix, price inflation and the exchange rate effect; (ii) the growth in underlying EBITDA, as reported, by about two thirds in FY2006, with reported margins improving to 13.3% in 2006 versus 10.1% in 2005; and finally (iii) the company's ability to sustain solid credit metrics in spite of a growth in indebtedness, with adjusted leverage remaining below 2x and RCF/Net debt reaching 43% in FY2006. The company's growth benefited from acquisitions, particularly in the latter half of 2006, for new dairy plants improving its regional footprint with the growth largely outside the central Moscow region. The ratings remain constrained by a number of factors, including: (i) the company's still high dependence on the Russian market, which accounted for 93% of total sales on average over the past three years; (ii) the company's ongoing exposure to exchange rate risk, given that the bulk of its material costs are in dollars, while nearly all operating revenues are in roubles; (iii) growing cost pressure, notably higher raw material costs for sugar and oranges over the past two years; and new curbs on advertising for broadcasters which are expected to lead to further cost increases for advertising. The company's liquidity position is satisfactory. Following the issue of Loan Participation Notes in February 2007, which was largely used to pay down short-term debt, at March 31, 2007 the company reported only US$3 million in short-term debt (excluding vendor financing) and cash and equivalents of US$93.9 million. However, the company's free cash flow generation is expected to remain limited due to continued investment activity. Moody's notes that the majority of Wimm-Bill-Dann's debt comes due in May 2008, notably the two US$150 million Loan Participation Notes, which together represent about two thirds of the company's outstanding indebtedness. Moody's will therefore monitor the company's strategy for refinancing this debt closer to the maturity date. Ratings affected include: -- Corporate Family Rating and Probability of Default Rating upgraded from B1 to Ba3; -- B1 rating on the US$150 million 8.5% Loan Participation Notes due 2008 upgraded from B1 to Ba3. The stable outlook reflects Moody's expectation that the company's future growth will continue to be underpinned by stable profit margins combined with acquisition activity, and that the company will maintain a generally conservative financial policy. Although not likely in the near term, further upward movement to the rating or outlook could occur if the company were to continue to grow both in terms of scale and margins, while sustaining adjusted leverage below 1x. The rating or outlook could be negatively impacted if spending on acquisitions were not matched by adequate growth in profitability, resulting in adjusted leverage significantly exceeding 2.5x on a continued basis. Wimm-Bill-Dann, headquartered in Moscow, Russia, is a leading Russian manufacturer of dairy products and juices, as well as baby foods. In the 12 months to March 31, 2007, the company reported US$1,919 million and US$260 million in revenues and EBITDA (before exceptionals), respectively. YUNOST CJSC: Orel Bankruptcy Hearing Slated for Sept. 5 ------------------------------------------------------- The Arbitration Court of Orel will convene on Sept. 5 to hear the bankruptcy supervision procedure on CJSC Agricultural and Industrial Corporation Yunost. The case is docketed under Case No. A48-4998/07-17b. The Temporary Insolvency Manager is: S. Deev Post User Box 24 115569 Moscow Russia The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: CJSC Agricultural and Industrial Corporation Yunost Gagarina Str. 14 Dolgoe 303760 Orel Russia ========= S P A I N ========= MADRID RMBS: Moody's Rates EUR52.5 Million Series E Notes at Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to seven series of "Bonos de Titulizacion de Activos" to be issued by Madrid RMBS III Fondo de Titulizacion de Activos, a Spanish asset securitization fund that has been created by Titulizacion de Activos, S.G.F.T, S.A.: -- Aaa to the EUR658 million Series A1 notes; -- Aaa to the EUR1575 million Series A2 notes; -- Aaa to the EUR497 million Series A3 notes; -- Aa2 to the EUR55.5 million Series B notes; -- A2 to the EUR90 million Series C notes; -- Baa2 to the EUR72 million Series D notes; and -- Ba3 to the EUR52.5 million Series E notes. The products being securitized are first-lien mortgage loans granted to individuals (all of whom will use these loans to acquire properties located in Spain), originated by Caja Madrid (Aa1/Prime-1), which will continue to service them. As of June 2007, the provisional portfolio comprised 17,733 loans for a total amount of EUR3,288,190,061. The original weighted average loan-to-value is 94.28%. The current WALTV is 92.13%. The average loan size is EUR185,427. The loans were originated between 1997 and 2006, with a weighted average seasoning of 1.75 years. The pool is concentrated in the Madrid (56%) and Catalonia (21%) regions. To hedge the potential mismatch risk derived from the fact that the index reference rates on the assets side and the notes side are different, or the risk derived from any amendment in the terms of the mortgage agreements, the "Fondo" will enter into a swap agreement with Caja Madrid. Besides this swap agreement, the "Fondo" will enter into three option agreements with Caja Madrid to allow a certain level of additional spread for loans indexed to IRPH compared to the swapped interest bases (Euribor), valued at 70 bppa initially. Moody's ratings address the expected loss posed to investors by the legal final maturity. The rating agency believes that the structure of the Madrid RMBS III notes allows for timely payment of interest and ultimate payment of principal at par, on or before the final legal maturity date and not at any other expected maturity date. The ratings do not address the full redemption of the notes on the expected maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on the yield to investors. Moody's bases its ratings on: (1) an evaluation of the underlying portfolio of mortgage loans securing the structure; and (2) the transaction's structural protections, which include the subordination, the strength of the cash flows and any excess spread available to cover losses. According to Moody's, this deal benefits from strong features, including: (1) strong underwriting and risk control criteria (including a robust in-house scoring system); (2) a reserve fund that is fully funded up-front to cover a potential shortfall in interest and principal; (3) a six-month artificial write-off mechanism; and (4) the fact that 100% of the loans are secured by residential mortgages. However, Moody's notes that the deal also has a number of weaknesses, including: (1) the collateral consists almost exclusively of loans with an LTV greater than 80%; (2) the poolcut has a very strong concentration in Madrid; (3) the deferral of interest payments on each of Series B, C, D and E increases the expected loss on these subordinated series; (4) the Reserve Fund amortization trigger is slightly above the standard figures for the Spanish market; (5) the renegotiation limit of the loans on which the maturity can be extended is 15%, compared to the standard figure of 10% in the Spanish market; (6) around 3% of the pool is composed by loans with more than three debtors; and (7) pro-rata amortization of the Series B, C, D and E notes leads to reduced credit enhancement of the senior series in absolute terms. These increased risks were reflected in Moody's credit enhancement calculation. OWASYS: Private Equity Firms Rescue Company from Receivership ------------------------------------------------------------- Owasys has emerged from temporary receivership after Inversion en Empresas Digitales, Ingeteam and Vizcaya government- controlled Seed Capital acquired a 47% stake in the Spanish mobile communications systems manufacturer, M. Arteche writes for Expansion. According to the report, the three private equity firms bought shares via the conversion of participatory loans extended to Owasys for EUR1 million. In 2006, Owasys had turnover of EUR2.6 million. The company expects a turnover of EUR3.2 million this year, Expansion relates. Headquartered in Vizcaya, Spain, Owasys –- http://www.owasys.com/--- specializes in the design, development, production management and international sales of advanced wireless devices. Owasys was founded in 2002 by employees of Swedish mobile handset manufacturer Ericsson's former plant in the Basque province of Vizcaya. =========== S W E D E N =========== AVNET INC: Unit Signs Distribution Agreement With Diodes Inc. ------------------------------------------------------------- Avnet, Inc.'s unit SILICA signed a distribution agreement with Diodes Incorporated, a leading manufacturer and supplier of high-quality application specific standard products within the broad discrete and analog semiconductor markets. SILICA is a highly specialized semiconductor distributor with 36 branch offices throughout Europe providing customers with a broad portfolio of semiconductor products along with in-depth technical and logistic support as well as other value-added services. With local teams of application engineers and technology specialists, SILICA is dedicated to supporting its OEM customers technically and to providing the design-in expertise needed for customers to compete successfully. As a division of Avnet Electronics Marketing in Europe, Silica is supported by Avnet Logistics for warehousing, programming and other value-added services. "We are very excited to add SILICA to our European distribution network," commented Mark A. King, Senior Vice President, Sales & Marketing of Diodes Incorporated. "Their specialized focus on semiconductor products and extensive local presence in Europe will improve our ability to service our customer's logistic requirements, enhance our competitiveness and strengthen our brand recognition." "Since entering the European market in 2001, we have consistently grown our sales and expanded our market share, successfully building our European customer base in the automotive, communications and industrial end-markets," said Dr. Keh-Shew Lu, President & Chief Executive Officer of Diodes, Inc. "Diodes' innovative products have been well received and we believe that Europe will make an important contribution to Diodes' long term profitable growth." "SILICA is very pleased to be associated with Diodes, Inc., a company that enjoys an excellent reputation for innovation and quality, and has consistently focused on and introduced leading edge innovative products. Their core strengths, combined with our existing extensive regional distribution network, provide a strong foundation to meet the needs of existing customers, and to win new business," said Miguel Fernandez, President of Silica. About Silica Silica -- http://www.avnet.com/-- is a specialized distributor offering a comprehensive range of semiconductor products and serving all European countries. Silica is a division of Phoenix-based Avnet, Inc., one of the largest distributors of electronic components, computer products and technology services and solutions with more than 250 locations serving 70 countries worldwide. Avnet brings a breadth and depth of capabilities, such as maximizing inventory efficiency, managing logistics, assembling products and providing engineering design assistance for its 100,000 customers, accelerating their growth through cost-effective, value-added services and solutions. For the fiscal year ended July 1, 2006, Avnet generated revenue of US$14.25 billion. About Diodes Incorporated Diodes Incorporated -- http://www.diodes.com/-- an S&P SmallCap 600 Index company, is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete and analog semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets. Diodes products include diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, power management devices including DC-DC switching and linear voltage regulators, amplifiers and comparators, and Hall- effect sensors. The Company has its corporate offices in Dallas, Texas, with a sales, marketing, engineering and logistics office in Southern California; design centers in Dallas, San Jose and Taipei; a wafer fabrication facility in Missouri; two manufacturing facilities in Shanghai; a fabless IC plant in Hsinchu Science Park, Taiwan; engineering, sales, warehouse and logistics offices in Taipei and Hong Kong, and sales and support offices throughout the world. With its recent asset acquisition of APD Semiconductor, a privately held U.S.- based fabless semiconductor company, Diodes acquired proprietary SBR(R) technology. Diodes, Inc.'s product focus is on high- growth end-user equipment markets such as TV/Satellite set-top boxes, portable DVD players, datacom devices, ADSL modems, power supplies, medical devices, wireless notebooks, flat panel displays, digital cameras, mobile handsets, DC to DC conversion, Wireless 802.11 LAN access points, brushless DC motor fans, and automotive applications. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT) -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden. * * * The Troubled Company Reporter on March 6, 2007, reported that Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. ===================== S W I T Z E R L A N D ===================== BACCHUS DRINK: Graubunden Court Closes Bankruptcy Proceedings ------------------------------------------------------------- The Bankruptcy Service of Plessur in Graubunden entered June 27 an order closing the bankruptcy proceedings of LLC Bacchus Drink Store. The Bankruptcy Service of Plessur can be reached at: Bankruptcy Service of Plessur 7000 Chur Plessur GR Switzerland The Debtor can be reached at: LLC Bacchus Drink Store Wiesentalstrasse 7 7000 Chur Plessur GR Switzerland CARTAROLL JSC: Zurich Court Closes Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Service of Bauma in Zurich entered June 21 an order closing the bankruptcy proceedings of JSC Cartaroll. The Bankruptcy Service of Bauma can be reached at: Bankruptcy Service of Bauma 8494 Bauma Pfaffikon ZH Switzerland The Debtor can be reached at: JSC Cartaroll Adetswilerstrasse 4 8344 Baretswil Hinwil ZH Switzerland GYGAX NIK: Bern Court Closes Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Service of Bern entered June 25 an order closing the bankruptcy proceedings of JSC Gygax Nik Wine & Dine. The Bankruptcy Service of Bern can be reached at: Bankruptcy Service of Bern Office Wangen 3380 Wangen BE Switzerland The Debtor can be reached at: JSC Gygax Nik Wine & Dine Langenthalstrasse 1 3367 Thorigen Wangen BE Switzerland INDEGO LLC: Lucerne Court Closes Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Service of Lucerne entered June 18 an order closing the bankruptcy proceedings of LLC Indego. The Bankruptcy Service of Lucerne can be reached at: Bankruptcy Service of Lucerne 6010 Kriens LU Switzerland The Debtor can be reached at: LLC Indego Schlosslistrasse 21 6030 Ebikon LU Switzerland NEUMANN COMMUNICATION: Bern Court Closes Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Service of Bern entered June 22 an order closing the bankruptcy proceedings of JSC Neumann Communication Systems. The Bankruptcy Service of Bern can be reached at: Bankruptcy Service of Bern Office Seftigen 3123 Belp Seftigen BE Switzerland The Debtor can be reached at: JSC Neumann Communication Systems Airport Business Center 62 3123 Belp Seftigen BE Switzerland PAUL OLLOZ: Creditors' Liquidation Claims Due July 31 ----------------------------------------------------- Creditors of JSC Paul Olloz have until July 31 to submit their claims to: Paul Olloz Liquidator Hauptstrasse 131 4422 Aristorf Switzerland The Debtor can be reached at: JSC Paul Olloz Giebenach Liestal BL Switzerland RCCS LLC: Creditors' Liquidation Claims Due July 30 --------------------------------------------------- Creditors of LLC RCCS have until July 30 to submit their claims to: Urs Hongler Liquidator St. Gallerstrasse 62 8853 Lachen March SZ Switzerland The Debtor can be reached at: LLC RCCS Adliswil Horgen ZH Switzerland RS’ IMPORT-EXPORT: Creditors' Liquidation Claims Due July 31 ------------------------------------------------------------ Creditors of LLC RS’ Import-Export have until July 31 to submit their claims to: Greifengasse 9 4058 Basel BS Switzerland The Debtor can be reached at: LLC RS’ Import-Export Basel BS Switzerland SCHOCH-HOLZBAU JSC: Creditors' Liquidation Claims Due July 30 ------------------------------------------------------------- Creditors of JSC Schoch-Holzbau have until July 30 to submit their claims to: Albert Schoch Liquidator Raad 323 8498 Gibswil ZH Switzerland The Debtor can be reached at: JSC Schoch-Holzbau Wald ZH Switzerland TRIVIT (SCHWEIZ): Creditors' Liquidation Claims Due July 30 ----------------------------------------------------------- Creditors of LLC TRIVIT (Schweiz) have until July 30 to submit their claims to: Hardturmstrasse 120 8005 Zurich Switzerland The Debtor can be reached at: LLC TRIVIT (Schweiz) Zurich Switzerland WEBMINISTRY LLC: Creditors' Liquidation Claims Due July 30 ---------------------------------------------------------- Creditors of LLC Webministry have until July 30 to submit their claims to: Feld 11 6362 Stansstad NW Switzerland The Debtor can be reached at: LLC Webministry Stansstad NW Switzerland WEIS + HOTTIGER JSC: Basel Court Closes Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Service of Basel entered June 19 an order closing the bankruptcy proceedings of JSC Weis + Hottiger. The Bankruptcy Service of Basel can be reached at: Bankruptcy Service of Basel 4051 Basel BS Switzerland The Debtor can be reached at: JSC Weis + Hottiger Haltingerstrasse 5 4005 Basel BS Switzerland ============= U K R A I N E ============= AGRICULTURAL INVEST: Creditors Must File Claims by July 19 ---------------------------------------------------------- Creditors of Agricultural LLC Agricultural Invest (code EDRPOU 32881394) have until July 19 to submit written proofs of claim to: Alexander Bilyk Temporary Insolvency Manager Konev Str. 13 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 14/2457. The Court is located at: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The debtor can be reached at: Agricultural LLC Agricultural Invest Kanev District Kononcha 19031 Cherkassy Ukraine AUGUST LLC: Claims Submission Deadline Set July 19 -------------------------------------------------- The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-39/76-07. Creditors of Dmitry Derevianko have until July 19 to submit written proofs of claims to: Dmitry Derevianko Melnikov Str. 8 61002 Kharkov Ukraine The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The debtor can be reached at: LLC Firm August Osnovianskaya Str. 4 61085 Kharkov Ukraine BRAVI-KHIMEK-SPORT: Claims Submission Deadline Set July 19 ---------------------------------------------------------- Creditors of LLC Bravi-Khimek-Sport (code EDRPOU 32185443) have until July 19 to submit written proofs of claim to: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/250-07. The debtor can be reached at: LLC Bravi-Khimek-Sport Kurskaya Str. 147 Sumy Ukraine COMMUNE HEAT-MACHINERY: Creditors Must File Claims by July 19 ------------------------------------------------------------- Creditors of CJSC Commune Heat-Machinery Plant (code EDRPOU 24903333) have until July 19 to submit written proofs of claim to: Vladimir Zavalniuk Temporary Insolvency Manager Kozitsky Str. 46 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy supervision procedure on the company on May 3. The case is docketed under Case No. 10/146-07. The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The debtor can be reached at: CJSC Commune Heat-Machinery Plant Lenin Str. 67 Kalinovka 22400 Vinnica Ukraine DONETS LLC: Claims Submission Deadline Set July 19 -------------------------------------------------- Creditors of Agricultural LLC Donets (code EDRPOU 00705462) have until July 19 to submit written proofs of claims to: Sergey Mishyn Liquidator Traktorostroiteley Avenue 85 61123 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-31/02-07. The Court is located at: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The debtor can be reached at: Agricultural LLC Donets Petrovskoe Balakleya District Kharkov Ukraine GORLOVCHANKA OJSC: Claims Submission Deadline Set July 19 --------------------------------------------------------- Creditors of OJSC Gorlovchanka (code EDRPOU 05502404) have until July 19 to submit written proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The debtor can be reached at: OJSC Gorlovchanka Youth Str. 1 Gorlovka 84639 Donetsk Ukraine LIMIT LLC: Claims Submission Deadline Set July 19 ------------------------------------------------- Creditors of LLC Limit (code EDRPOU 32656516) have until July 19 to submit written proofs of claim to: Aleksey Shvydkiy Liquidator Norinsky Quarter 5 91054 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 20/35b. The debtor can be reached at: LLC Limit Gagarin Str. 24 Alchevsk Lugansk Ukraine PRESTIGE TRADE-SERVICE: Claims Submission Deadline Set July 19 -------------------------------------------------------------- Creditors of LLC Prestige Trade-Service (code EDRPOU 33308536) have until July 19 to submit written proofs of claim to: Elena Zorina Liquidator Vasiliy Stus Str. 28 03142 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/192-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The debtor can be reached at: LLC Prestige Trade-Service Elena Teliga Str. 39-a 04086 Kiev Ukraine SHEPETOVKA MOTORCAR 16807: Creditors Must File Claims by July 19 ---------------------------------------------------------------- Creditors of OJSC Shepetovka Motorcar Enterprise 16807 (code EDRPOU 00426458) have until July 19 to submit written proofs of claim to: Vasily Kunashenko Temporary Insolvency Manager Sheshukov Str. 10 Shepetovka 30400 Hmelnitskiy Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/100-B. The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The debtor can be reached at: OJSC Shepetovka Motorcar Enterprise 16807 Lermontov Str. 2 Shepetovka 30400 Hmelnitskiy Ukraine SODRUZHESTVO LLC: Claims Submission Deadline Set July 19 -------------------------------------------------------- Creditors of LLC Industrial-Investment Holding Sodruzhestvo (code EDRPOU 33401684) have until July 19 to submit written proofs of claim to: LLC Best Prom Liquidator Bulgakov Str. 16 03134 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/221-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The debtor can be reached at: LLC Industrial-Investment Holding Sodruzhestvo Schors Str. 29 01133 Kiev Ukraine SOUTH CEREAL: Claims Submission Deadline Set July 19 ---------------------------------------------------- Creditors of LLC South Cereal Company (code EDRPOU 31553842) have until July 19 to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 2/25/07. The debtor can be reached at: LLC South Cereal Company Cosmonauts Str. 56-a 56018 Nikolaev Ukraine =========================== U N I T E D K I N G D O M =========================== BARAKA POST: Paul Appleton Leads Liquidation Procedure ------------------------------------------------------ Paul Appleton of David Rubin & Partners was appointed liquidator of Baraka Post Production Ltd. on June 25 for the creditors’ voluntary winding-up procedure. David Rubin & Partners -- http://www.drpartners.com/-- specializes in corporate and personal insolvency, recovery, forensic accounting and litigation support. The company can be reached at: Baraka Post Production Ltd. Flats 11 Greek Street City of Westminster London W1D 4DJ England Tel: 020 7734 2227 BIKE SURGEON: Appoints Ian Bull as Liquidator --------------------------------------------- Ian Bull of Ian Bull & Co. was appointed liquidator of Bike Surgeon Ltd. on June 7 for the creditors’ voluntary winding-up procedure. The company can be reached at: Bike Surgeon Ltd. Victoria Place Brightlingsea Colchester CO7 0BX England Tel: 01206 308 555 COTSWOLD BUSINESS: Taps David Hughes to Liquidate Assets -------------------------------------------------------- David Hughes of Janes was appointed liquidator of Cotswold Business Furniture Ltd. on June 22 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Cotswold Business Furniture Ltd. Station Road Blockley Moreton in Marsh GL56 9LH England Tel: 01386 701 199 Fax: 01386 701 283 EMI GROUP: Terra Firma Extends GBP2.4 Bln. Cash Offer to July 19 ---------------------------------------------------------------- Terra Firma Capital Partners Ltd.'s extended until July 19, 2007, the time within which EMI Group Plc shareholders can accept its GBP2.4 billion cash offer for the UK music group, published reports say. The proposed takeover by Maltby Limited, a private equity buyout vehicle set up by Terra Firma Capital Partners Ltd., obtained clearance from the European commission on July 12, 2007. As of July 12, 2007, being the revised closing date of the offer, Maltby received valid acceptances totalling 31,010,127 EMI shares or around 3.82% of the existing issued ordinary share capital of EMI. EMI's board of directors accepted the offer in May 2007 and recommended shareholders to do the same. Warner Music Before the board accepted Terra Firma's offer, Warner Music sweetened its bid to acquire EMI by offering to pay a break-up fee of between GBP50 million and GBP100 million in case the European Commission blocks its planned takeover of the U.K. music group, Dominic White of The Telegraph related. EMI, the world's third largest music producer, has been subject to several takeover bids including from U.S. rival Warner Music Group Corp. and other equity firms after it suffered losses due to a shrinking CD market and rampant online piracy. EMI previously rejected Warner Music's GBP2.1 billion non- binding takeover bid on March 2, 2007, saying that the price of 260 pence per share in cash for EMI is inadequate. According to Mr. White of The Telegraph, EMI also cited concerns that Warner had not offered to take any of the regulatory risk in relation to the takeover. Latest reports reveal that EMI shareholders are waiting to see if Warner Music will make a counter offer for EMI after it confirmed last month that it continues to actively consider an offer for its UK rival, despite its bid being snubbed in favor of an equity firm. About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. In January 2007, Moody's Investors Service downgraded EMI Group plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. Downgrade and review follow the announcement that EMI: (i) will incur up to GBP150 million in incremental restructuring costs, (ii) has performed below its expectations during its financial year-to-date, (iii) has installed Eric Nicoli, hitherto chairman of the group as CEO of EMI Group and of EMI Recorded Music and is reviewing its balance sheet. EMU POINT: Names A. D. Kent Liquidator -------------------------------------- A. D. Kent was appointed liquidator of Emu Point Ltd. on June 21 for the creditors’ voluntary winding-up procedure. The company can be reached at: Emu Point Ltd. Unit B Station Approach Steppingley Road Flitwick Bedford MK45 1AJ England Tel: 01525 720 060 EUROSAIL-UK: Moody's Rates Class E1 Mortgage Notes at (P)Ba1 ------------------------------------------------------------ Moody's Investors Service assigned provisional long-term credit ratings to the Notes to be issued by Eurosail-UK 2007-4BL PLC: -- (P)Aaa to the [31.00]% Class A1 Mortgage Backed Floating Rate Notes due [2028]; -- (P)Aaa to the [23.00]% Class A2 Mortgage Backed Floating Rate Notes due [2045]; -- (P)Aaa to the [30.30]% Class A3 Mortgage Backed Floating Rate Notes due [2045]; -- (P)Aa2 to the [5.20]% Class B Mortgage Backed Floating Rate Notes due [2045]; -- (P)A1 to the [5.50]% Class C Mortgage Backed Floating Rate Notes due [2045]; -- (P)Baa2 to the [3.60]% Class D1 Mortgage Backed Floating Rate Notes due [2045]; and -- (P)Ba1 to the [1.40]% Class E1 Mortgage Backed Floating Rate Notes due [2045]; The Class N Notes are not rated by Moody's. Class A1, A2, A3, B, C, D1 and E1 Notes are backed by mortgages and the N Notes will be paid back by available excess spread. Classes A1, A2, A3, B, C, D1 and E1 Notes may be issued in GBP, EUR or USD depending on market demand. The final currency denominations within each separate class of note will rank pari-passu with each other in all respects. This is the 8th non-conforming RMBS transaction under the Eurosail name. It combines loans originated by Langersal No.2 Limited, Matlock London Limited, Preferred Mortgages Limited, Southern Pacific Mortgage Limited, and Alliance & Leicester plc. It features "Prime", "Near Prime" and "Sub Prime" loans of Langersal, Matlock, Preferred, SPML and A&L. Capstone Mortgage Services Limited is the initial primary mortgage servicer and cash/bond administrator for the transaction. Specialist Mortgage Service Limited, a wholly owned subsidiary of Scarborough Building Society, is the standby mortgage servicer and cash/bond administrator. Liquidity facility and GIC will be provided by banks with a Prime-1 rating. Substitution will be allowable to the extent of a breach of representations and warranties and when a borrower ports their loan to a new property (subject to certain conditions), in lieu of cash reimbursement to the Issuer by the originator as long as the substitute loans meet certain eligibility criteria. The transaction will incorporate at the closing date a cash reserve of GBP12,000,000 to mitigate the reduced interest rate on discounted loans during the first two years. A fixed cash amount will be withdrawn from the Discounted Margin Reserve Ledger on each of the first eight Interest Payment Dates and will flow through the revenue waterfall as available revenue. The provisional ratings of the A Notes, the B Notes, the C Notes, the D1 Notes and the E1 Notes are based upon an analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, and the legal and structural integrity of the issue. An additional level of protection to investors in the Notes will be the Reserve Fund, which on closing will equal GBP3,285,000 or 0.45% of the original transaction size(excluding the N Notes). The provisional ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for the timely payment of interest and ultimate payment of principal by the legal final maturity. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the Notes. A final rating may differ from a prospective rating. EUROSAIL-UK 07-3: Fitch Rates Classes E1c and ETc Notes at BB+ -------------------------------------------------------------- Fitch Ratings assigned final ratings to Eurosail-UK 07-3 BL Plc's GBP650 million (equivalent) mortgage-backed floating-rate notes due 2027 and 2045: -- US$200 million Class A1b, due 2027: 'AAA' -- GBP102.5 million Class A1c, due 2027: 'AAA' -- EUR64.5 million Class A2a, due 2045: 'AAA' -- US$100 million Class A2b, due 2045: 'AAA' -- GBP63 million Class A2c, due 2045: 'AAA' -- EUR215 million Class A3a, due 2045: 'AAA' -- GBP64.5 million Class A3c, due 2045: 'AAA' -- EUR15 million Class B1a, due 2045: 'AA' -- GBP23 million Class B1c, due 2045: 'AA' -- EUR25 million Class C1a, due 2045: 'A-' -- GBP10 million Class C1c, due 2045: 'A-' -- EUR25.5 million Class D1a, due 2045: 'BBB' -- GBP5.525 million Class E1c, due 2045: 'BB+' -- GBP9.750 million Class ETc, due 2045: 'BB+' Each rated Class in this transaction has a Stable Outlook. This transaction is a securitization of first- and second-charge near-prime and sub-prime residential mortgages originated and located in the UK. The final ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria of Southern Pacific Mortgage Limited, Preferred Mortgages Limited, Alliance and Leicester Plc, Amber Homeloans Limited and Matlock Bank Limited (trading under the London Mortgage company brand), as well as the transaction's sound legal structure. Credit enhancement for the Class A notes is initially 13.15%, provided by the subordination of the Class B notes (5.1%), the Class C notes (4.15%), the Class D1 notes (2.65%), the Class E1c notes (0.85%), and an initial and target reserve fund of 0.4%. The Class ETc notes are to be repaid solely by excess spread available in the transaction. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its UK Residential Mortgage Default Model, dated 5 February 2007. The agency also modeled cash flows using the results of the default model, with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. EUROSAIL-UK 2007-4BL: S&P Gives BB Rating to E1a and E1c Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the GBP730 million (equivalent) mortgage- backed floating-rate notes to be issued by Eurosail-UK 2007-4BL PLC. Eurosail-UK 2007-4BL will be the eighth transaction under the Eurosail program. At closing, Eurosail-UK 2007-4BL will issue the notes and use part of the proceeds to acquire the loan pool from the sellers, Southern Pacific Mortgage Ltd. and Preferred Mortgages Ltd. This loan pool comprises first- and second-ranking mortgages on properties in England, Wales, and Northern Ireland, and standard securities on properties in Scotland. The mortgage loans in the pool are nonconforming mortgages. The transaction will feature an interest rate cap agreement (bullet-cap agreement) to hedge against rising LIBOR, a discount margin reserve to partially hedge against the risk associated with reduced rates of interest payable on discounted loans, and a bullet-cap reserve fund. A fixed/floating swap will be in place to hedge against certain interest rate mismatches. A BBR swap agreement will also be in place to hedge against mismatch between BBR-linked loans and LIBOR-based notes. Ratings List Eurosail-UK 2007-4BL PLC GBP730 Million (Equivalent) Mortgage-Backed Floating-Rate Notes Prelim. Prelim. Amount Class Rating (Mln. GBP equiv.) ----- ------ --------------- A1a AAA TBD A1b AAA TBD A1c AAA 226.30 A2a AAA TBD A2b AAA TBD A2c AAA 167.90 A3a AAA TBD A3b AAA TBD A3c AAA 221.19 B1a AA TBD B1b AA TBD B1c AA 37.96 C1a A TBD C1b A TBD C1c A 40.15 D1a BBB- TBD D1b BBB- TBD D1c BBB- 26.28 E1a BB TBD E1c BB 10.22 N NR TBD FOPP LTD: Gordon Montgomery In Talks to Buy Back Business --------------------------------------------------------- Gordon Montgomery, the founder of music chain Fopp Ltd., is said to be in talks to reacquire part of the company, William Lyons writes for The Scotsman. Sources close to Mr. Montgomery told The Scotsman that the founder is currently trying to raise the necessary funds for a repurchase deal. Sources say he is convinced the business model still works. Mr. Montgomery refused to comment on the issue. An Ernst & Young spokeswoman told The Scotsman she is not aware of Mr. Montgomery's move. However, she revealed some interested parties had looked at some of the stores. As previously reported in the TCR-Europe on July 5, 2007, approximately 700 jobs at Fopp Ltd. and MZ 2007 Ltd. across the United Kingdom have been lost due to store closures. There are 50 Fopp stores and 31 Music Zone stores across the U.K. with approximately 800 employees. "It is unfortunate that we have had to make these redundancies but we are not in a position to re-open the stores until we have the agreement of suppliers who control the licenses to sell stock," Colin Dempster, one of the joint administrators, commented. Fopp owes about GBP10 million to suppliers, including Universal Music, Sony BMG, EMI, Plastic Head Music Distribution and ESD Wholesale, Times Online relates. On June 29, 2007, Tom Burton and Colin Dempster from Ernst & Young have been appointed joint receivers of Fopp and joint administrators to MZ 2007. Fopp is a retailer of music, film and books in the United Kingdom that began as a one-man stall in Glasgow, Scotland in 1981. It has undergone significant store expansion over the last two years. Earlier this year it acquired 68 Music Zone stores out of administration, many of these have subsequently been closed. FREESCALE SEMICONDUCTOR: Selling East Kilbride Site --------------------------------------------------- Freescale Semiconductor Inc. is looking for a buyer for its East Kilbride site in the United Kingdom, The Scotsman reports. According to the report, Freescale has already informed the site's around 900 employees of the sale plan. The Scotsman notes that many electronics firms are transferring their countries with lower overheads, which makes the hunt for East Kilbride site's buyer more difficult. About Freescale Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries, including the Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey and the United Kingdom. * * * As reported in the TCR-Europe on May 28, 2007, Moody's Investors Service affirmed these ratings of Freescale Semiconductor Inc. and changed the outlook to negative: Ba3 corporate family rating; Ba3 probability of default rating; B1 rating of US$2.85 billion senior unsecured notes due 2014; B1 rating of US$1.50 billion senior unsecured toggle notes due 2014; and B2 rating of US$1.60 billion senior subordinated unsecured notes due 2016. GATEWAY AUTOS: Hires Liquidator from Kay Johnson Gee ---------------------------------------------------- Jonathan Elman Avery-Gee of Kay Johnson Gee was appointed liquidator of Gateway Autos (Manchester) Ltd. on June 25 for the creditors’ voluntary winding-up procedure. The company can be reached at: Gateway Autos (Manchester) Ltd. Unit 2-6 Trafford Distribution Centre Tenax Road Trafford Park Manchester M17 1JT England Tel: 0161 872 9559 Fax: 0161 872 9536 GEORGE MAJOR: Brings Ian C. Brown to Liquidate Assets ----------------------------------------------------- Ian C. Brown was appointed liquidator of George Major Skip Hire Ltd. (formerly Estatepower Ltd.) on June 18 for the creditors’ voluntary winding-up procedure. The company can be reached at: George Major Skip Hire Ltd. SMM Business Park Dock Road Birkenhead CH41 1DT England Tel: 0151 653 0733 Fax: 0151 651 2121 OAKLAND HOUSE: Calls In Liquidators from Mazars ----------------------------------------------- Robert Adamson and Paul Charlton of Mazars LLP were appointed joint liquidators of Oakland House Shopfitters Ltd. on June 25 for the creditors’ voluntary winding-up procedure. Mazars -- http://www.mazars.com/-- provides audit, accounting, tax and advisory services. The company can be reached at: Oakland House Shopfitters Ltd. Oakland House Netherfield Road Dewsbury WF13 3JY England Tel: 01924 439 505 Fax: 01924 466 913 Web site: http://www.oakland-house.com/ ORECK CORP: Challenging Liquidity Cues Moody's Junks Rating ----------------------------------------------------------- Moody's Investors Service lowered its Corporate Family Rating and first lien bank loan ratings for Oreck Corporation to Caa1 from B2 and the probability of default rating to Caa2 from B2. All ratings are under review for a further possible downgrade. At the same time Moody's withdrew its B1 and Caa1 ratings previously assigned to the proposed US$150 million first lien credit facility and the proposed US$50 million second lien credit facility, respectively as the company does not intend to proceed with these transactions. The downgrade resulted from expectations that liquidity of the company will remain challenged following the company's decision not to proceed with closing of the previously proposed 1st and 2nd lien credit facilities, which Moody's had anticipated would provide the company with adequate levels of liquidity. The company's existing first lien term loan and revolving credit facilities remain in default of financial covenants and as a result the company is unable to access the revolving credit facility. At the same time the downgrade reflects Moody's concerns that the pace of recovery of the direct response business may be more protracted than anticipated and efforts to improve performance of this business may prove challenging. At the same the limited level of liquidity may impede the ability of the company to increase investment in marketing, product development as well as facility consolidation. The ratings have been placed under review for a further possible downgrade as an inability to reach agreement with the lenders in its existing credit facilities could further negatively impact liquidity and reduced liquidity could create challenges for the company's ongoing operations. If covenants are not waived and some form of restructuring becomes more likely ratings could be lowered further. These ratings were lowered and assessments were amended: -- Corporate Family Rating to Caa1 from B2 -- Probability of Default Rating to Caa2 from B2 -- US$20m first lien revolving credit facility to Caa1 (LGD 3 \u2013 32%) from B2 (LGD 3 -- 31%) -- US$177 million first lien term loan to Caa1 (LGD 3 -- 32%) from B2 (LGD 3 -- 31%) These ratings have been withdrawn: -- US$130 million first lien term loan facility (was B1) -- US$50 million second lien term loan facility (was Caa1) Oreck Corporation, based in New Orleans, Louisiana, is a leading manufacturer and marketer of premium priced vacuum cleaners and air purifiers under the "Oreck" brand name. Oreck sells throughout the world, including South America, the United Kingdom and Australia. PROPERTY SOLUTIONS: Appoints C. B. Barrett as Liquidator -------------------------------------------------------- C. B. Barrett of Unity Business Services LLP was appointed liquidator of Property Solutions (North) Ltd. on June 26 for the creditors’ voluntary winding-up procedure. The company can be reached at: Property Solutions (north) Ltd. 138a Flixton Road Urmston Manchester M41 5BG England Tel: 0161 747 9944 Fax: 0161 749 7111 TECHNIC TYRE: Joint Liquidators Take Over Operations ---------------------------------------------------- Gordon Craig and Daniel Paul Hennessy of Cresswall Associates Ltd. were appointed joint liquidators of Technic Tyre Ltd. (formerly Technic Tyre Plc and Anguilla Group Plc) on June 6 for the creditors’ voluntary winding-up procedure. The company can be reached at: Technic Tyre Ltd. Wellington Road Burton on Trent DE14 2TG England Fax: 01283 527 601 TISCALI S.P.A.: Acquiring Pipex’s Broadband & Voice Service Unit ---------------------------------------------------------------- Tiscali S.p.A. and Pipex Communications Plc have entered into an agreement for the acquisition of the broadband and voice division of Pipex by Tiscali U.K. Holdings Ltd. The enterprise value agreed for the acquisition is GBP210 million. The final equity value, which will be determined at closing, is subject to adjustment for net debt position, the level of working capital. The acquisition is subject to the approval of Pipex’s Shareholders and clearance by the U.K. Office of Fair Trading. The Division was expecting 2007 sales of over GBP300 million and an EBITDA of over GBP20 million on the basis of 1Q07 results and of Tiscali’s own estimates. The Division has in the region of one million active customers, 650,000 voice customers and 570,000 broadband customers -- of which, 250,000 are dual play -- and 100,000 are SME business customers and approximately 1,400 employees. Following the acquisition, Tiscali U.K. will have 1.9 million broadband customers. Tiscali U.K. has unbundled 800 exchanges, reaching 55% of U.K. homes with plans to extend this network to over 1,000 sites covering at least 65% of the U.K.’s addressable DSL market. In addition, Tiscali U.K. has rolled out an extensive next generation high bandwidth network to support both its business customers and new IPTV triple play product. “The acquisition of Pipex’s broadband and voice division further cements Tiscali’s position as a fully integrated telecom and media operator in the top league of the U.K. market and underlines our reputation as a major investor and innovator in the full range of broadband services, Tiscali U.K. CEO Mary Turner said. ”Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect costs efficiencies. Over a four-year period, we estimate cumulated synergies in the region of GBP150 million at EBITDA level ca GBP50 million to secure the synergies and efficiencies. In addition, we will be able to offer our new Pipex customers the full range of Tiscali’s compelling and innovative services including broadband, telephone and TV. This acquisition provides us with an even greater opportunity in rolling out our double and triple play offers.” “The Board of Pipex is pleased to agree to the sale of the voice and broadband division, which we feel recognizes the strong market position we have built over the last three years. Tiscali’s commitment to investment in LLU, along with the new TV services it is introducing will offer our existing customers value and choice in the future,” Pipex Chairman Peter Dubens. The acquisition will be financed through a EUR650 million debt facility underwritten by Intesa Sanpaolo and JP Morgan. This facility will replace substantially all outstanding financial debt of the Tiscali Group and may be partially refinanced by debt capital markets instruments of approximately EUR400 million and it could also be partially refinanced by an equity increase of up to EUR150 million which is expected to be resolved upon in late September 2007, in all events depending on market conditions. “Upon completion of the Tiscali Group’s strategic refocusing and delivery of the Group’s financial targets, the acquisition of Pipex’s broadband and voice division represents the first step in the new development phase,” Tiscali S.p.A. CEO Tommaso Pompei said. “In the U.K., our position will become even stronger as our growth accelerates. It will increase our broadband market share to approximately 15%, place Tiscali as one of the largest alternative broadband, voice and media provider in the U.K. and further complement the recent acquisition of Video Networks Ltd. Following the acquisition, the 2008 net income and free cash flow generation targets are confirmed, with a net financial position to EBITDA ratio expected to remain under three times.” Rothschild and Banca IMI acted as financial advisors of Tiscali in the acquisition of the Division. About Tiscali Headquartered in Cagliari, Italy, Tiscali S.p.A. -- http://www.tiscali.com/-- offers Internet access in the country. The group also operates in other European countries, serving more than seven million subscribers, of which over 1.5 million are broadband users. It has sold non-core assets to raise money to cover a EUR250 million bond that matured in July. Former chairman and founder Renato Soru owns almost 30% of the company. As reported in the TCR-Europe on March 22, 2007, the company registered EUR136.16 million in net losses on EUR678.48 million in net revenues for the full year ended Dec. 31, 2006, compared with EUR12.81 million net losses on EUR530.85 billion in revenues for full year 2005. As of Dec. 31, 2006, Tiscali had EUR1.23 billion in total assets, EUR960 million in total liabilities and EUR270 million in total shareholders' equity. As reported in the TCR-Europe on Oct. 13, 2006, Tiscali's Board of Directors approved a three-year plan for 2007-2010, which calls for the concentration of its core business in Italy and in the United Kingdom. * * * As reported in the TCR-Europe on June 27, 2007, Fitch Ratings has upgraded Italy-based Tiscali S.p.A.'s Long-term Issuer Default rating to 'B-' from 'CCC' and removed it from Rating Watch Positive. Fitch said a stable outlook is assigned. WILMSLOW EQUIPMENT: Taps Liquidators from O’Hara & Co. ------------------------------------------------------ Peter O’Hara and Simon Weir of O’Hara & Co. were appointed joint liquidators of Wilmslow Equipment Sales Ltd. on June 20 for the creditors’ voluntary winding-up proceeding. The company can be reached at: Wilmslow Equipment Sales Ltd. Two Gates Wood Lane Mobberley Knutsford WA16 7NP England Tel: 01565 880 127 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *