/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080627.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, June 27, 2008, Vol. 9, No. 127 Headlines A U S T R I A CARSI HANDEL: Claims Registration Period ends July 30 HRW LLC: Claims Registration Period Ends July 15 MAZ HANDEL: Claims Registration Period Ends July 7 MOCCA CLUB: Claims Registration Period Ends July 15 G E R M A N Y BOUROUIS ZERLEGE: Claims Registration Period Ends July 10 H.G. INNENAUSBAU: Claims Registration Period Ends July 8 HECKLER & KOCH: S&P Keeps B- Ratings; Outlook Revised to Stable KLW BAUELEMENTE: Claims Registration Period Ends July 7 KUL FOOD: Claims Registration Period Ends July 9 LANSYS GESELLSCHAFT: Claims Registration Period Ends July 11 MEDITHERNA GMBH: Claims Registration Period Ends July 11 MFR BAU: Claims Registration Period Ends July 11 SARTRANS GMBH: Claims Registration Period Ends July 10 SK-BUSREISEN GMBH: Claims Registration Period Ends July 11 SPECTRAL GESELLSCHAFT: Claims Registration Period Ends July 11 STUIS BAU: Claims Registration Period Ends July 10 I R E L A N D TALISMAN-6: S&P Cuts Ratings on Classes E & F Notes on Watch Neg K A Z A K H S T A N ALMARAT & K: Claims Deadline Slated for Aug. 1 COTTONY LLP: Claims Filing Period Ends Aug. 1 FASAD LLP: Creditors' Claims Due on Aug. 1 GOOD FOOD: Creditors Must File Claims by Aug. 1 KARASAI BATYR: Claims Deadline Slated for Aug. 1 MAKSICOM LTD: Claims Filing Period Ends Aug. 1 NURBASTAU LLP: Claims Registration Ends Aug. 1 SAGOR LLP: Creditors' Claims Due on Aug. 1 STROYTRANS-MOST LLP: Claims Registration Ends Aug. 1 STROYVEK & K: Creditors Must File Claims by Aug. 1 K Y R G Y Z S T A N TURAN MC: Creditors Must File Claims by July 30 L U X E M B O U R G EVRAZ GROUP: South African Antitrust Agency Raids Highveld Unit N E T H E R L A N D S HIGHLANDER EURO: Moody's Rates US$20.1 Mln Class E Notes at Ba3 PARK MOUNTAIN: Moody's Rates Three Note Classes at Low-B X5 RETAIL: Inks Deal to Complete Formata Holding Acquisition P O L A N D AMERICAN AXLE: Moody's Cuts Corporate Family Rating to B1 R U S S I A BURENKA LLC: Creditors Must File Claims by July 7 EVRAZ GROUP: South African Antitrust Agency Raids Highveld Unit IGROTEKA PLUS: Creditors Must File Claims by July 7 ITALY-FASHION CJSC: Moscow Bankruptcy Hearing Set September 2 MAGCENTRE LLC: Moscow Bankruptcy Hearing Slated for October 21 MILK LLC: Creditors Must File Claims by July 7 SENEMI CJSC: Creditors Must File Claims by August 7 SEVERSTAL OAO: Plans Another U.S. Asset Acquisition TUMENENERGOBANK: Moody's Puts B3/NP/E+/Baa3.ru Ratings VTOVAZ-LYUBLINO CJSC: Creditors Must File Claims by July 7 X5 RETAIL: Inks Deal to Complete Formata Holding Acquisition ZELENCHUKSKIE NETWORK: Creditors Must File Claims by July 7 T U R K E Y TURKIYE GARANTI: Fitch Rates Foreign Currency IDR at BB U K R A I N E BELMTZCENTER LLC: Creditors Must File Claims by July 6 CONSTANTA-GROUP LLC: Creditors Must File Claims by July 6 ECOPLAST LLC: Creditors Must File Claims by July 6 ENERGOATOM: Creditors File UAH28.1 Mln. Suit Ahead of Moratorium FOOD-SERVICE 2005: Creditors Must File Claims by July 6 KHARKOVRESOURCE LTD: Creditors Must File Claims by July 6 KOLOS AGRICULTURAL: Creditors Must File Claims by July 6 SLAVMETTRADE LLC: Creditors Must File Claims by July 6 SOUTH METAL: Creditors Must File Claims by July 6 TECHNOFOR LLC: Creditors Must File Claims by July 6 U N I T E D K I N G D O M ACXIOM CORP: S&P Keeps Low-B Ratings; Outlook Revised to Stable AIRE VALLEY 2004-1: Fitch Affirms Classes D1 and D2 Notes at BB AMTRAK EXPRESS: Brings In Liquidators from KPMG BAA LTD: Calls for a Third Runway at Heathrow ECO-BAT TECH: S&P Keeps B+ Rating; Outlook Revised to Positive GLOBAL TRADER: Joint Liquidators Take Over Operations INTERNATIONAL FURNITURE: Taps Liquidators from Tenon Recovery LINKALPHA LTD: Calls In Liquidators from Tenon Recovery MK AIRLINES: Resumes Flight After Administrators Secure Funding S E CLEANING: Appoints Liquidator from Mazars SWITCH WIZARD: Hires Liquidators from Tenon Recovery THOMAS JAMES: Brings In Liquidators from Mazars TRANSPARENT PROPERTY: Appoints Liquidators from Tenon Recovery * Bad Debt Is a Contributor to UK SME Insolvencies, Study Says * S&P's Takes Watch Actions on 28 European CDO of ABS Tranches BOOK REVIEW: Learning Leadership ********* ============= A U S T R I A ============= CARSI HANDEL: Claims Registration Period ends July 30 ----------------------------------------------------- Creditors owed money by LLC CARSI Handel (FN 215870g) have until July 30, 2008, to file written proofs of claim to court- appointed estate administrator Andreas Alzinger at: Dr. Andreas Alzinger Karntner Ring 12 1010 Vienna Austria Tel: 515 50 333 Fax: 515 505 50 E-mail: a.alzinger@baierboehm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Aug. 13, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 29, 2008 (Bankr. Case No. 2 S 65/08h). HRW LLC: Claims Registration Period Ends July 15 ------------------------------------------------ Creditors owed money by LLC HRW (FN 172204t) have until July 15, 2008, to file written proofs of claim to court- appointed estate administrator Michael Lesigang at: Dr. Michael Lesigang Landstrasser Hauptstrasse 14 1030 Vienna Austria Tel: 715 25 26 Fax: 715 25 26/27 E-mail: Michael@lesigang.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on July 29, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 29, 2008 (Bankr. Case No. 4 S 76/08s). MAZ HANDEL: Claims Registration Period Ends July 7 -------------------------------------------------- Creditors owed money by LLC MAZ Handel (FN 263099k) have until July 7, 2008, to file written proofs of claim to court-appointed estate administrator Brigitte Stampfer at: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Fax: 877 33 30-33 E-mail: ra-stampfer@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on July 21, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 29, 2008 (Bankr. Case No. 3 S 56/08t). MOCCA CLUB: Claims Registration Period Ends July 15 --------------------------------------------------- Creditors owed money by LLC Mocca Club & Co KEG (FN 251732w) have until July 15, 2008, to file written proofs of claim to court-appointed estate administrator Andrea Simma at: Dr. Andrea Simma Schulerstrasse 18 1010 Vienna Austria Tel: 513 67 03 Fax: 513 67 03 33 E-mail: RA_Simma@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on July 29, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 29, 2008 (Bankr. Case No. 28 S 77/08i). ============= G E R M A N Y ============= BOUROUIS ZERLEGE: Claims Registration Period Ends July 10 --------------------------------------------------------- Creditors of Bourouis Zerlege-GmbH have until July 10, 2008, to register their claims with court-appointed insolvency manager Raimund Schafmeister. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 14, 2008, 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 Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold 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: Raimund Schafmeister Moltkestr. 12 32756 Detmold Germany The District Court of Detmold opened bankruptcy proceedings against Bourouis Zerlege-GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bourouis Zerlege-GmbH Attn: Rachid Bourouis, Manager Bielefelder Str. 529 32758 Detmold Germany H.G. INNENAUSBAU: Claims Registration Period Ends July 8 -------------------------------------------------------- Creditors of H.G. Innenausbau GmbH have until July 8, 2008 to register their claims with court-appointed insolvency manager Dr. Lucas F. Floether. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on July 29, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall 14 Breiter Weg 203-206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Lucas F. Floether Halberstadter Str. 55 39112 Magdeburg Germany Tel: 0391/5556840 Fax: 0391/5556849 E-mail: magdeburg@floetherwissing.de The District Court of Magdeburg opened bankruptcy proceedings against H.G. Innenausbau GmbH on June 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H.G. Innenausbau GmbH Halberstadter Chaussee 2 h 39116 Magdeburg Germany HECKLER & KOCH: S&P Keeps B- Ratings; Outlook Revised to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Germany-based small-arms defense contractor Heckler & Koch GmbH to stable from negative, reflecting S&P's expectation that financial performance will maintain its improving trend and support the credit profile. At the same time, the 'B-' corporate credit ratings and senior secured debt ratings were affirmed. "The outlook revision reflects HK's stronger trading performance supported by recent order wins, which have pushed the group's backlog up to record levels and provide a good revenue visibility for next 12-18 months," said Standard & Poor's credit analyst Sabine Gromer. While HK remains highly leveraged, Standard & Poor's expects the group to increase profit and free cash flows in 2008 sufficiently to preserve, or slightly improve, its credit profile. Given its modest size and some dependence on a small number of key contracts, HK's business risk is vulnerable. Although some time has elapsed since the expiration of several significant contracts in 2005, HK has now been successful at generating replacement revenues and rebuilt firm orders. At March 31, 2008, these totaled EUR158.3 million or 1.1x 2007 revenues. In the 12 months to March 31, 2008, HK's operating performance improved after poor results in 2006, with revenues increasing by 3.8% and adjusted EBITDA of EUR24.7 million and margin of 17% compared with 2006 adjusted EBITDA of EUR9.4 million and margin of 7.6%. The stable outlook reflects Standard & Poor's expectations of continuing improvements in trading performance, which should support the credit profile. S&P expects Heckler & Koch's cash flow protection measures to remain weak for the rating category. S&P's rating assumes adequate liquidity is maintained, reflected by a minimum cash balance of EUR20 million. Negative rating pressure could be triggered by weaker�than- expected trading performance or aggressive shareholder action, particularly if these compromise the group's liquidity levels. A positive rating action for HK seems unlikely at this stage. KLW BAUELEMENTE: Claims Registration Period Ends July 7 ------------------------------------------------------- Creditors of KLW Bauelemente GmbH have until July 7, 2008 to register their claims with court-appointed insolvency manager Dr. Thomas Westphal. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on July 28, 2008, 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 Celle Hall 014 Muehlenstrasse 4 29221 Celle 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. Thomas Westphal Meteorstr. 1 29221 Celle Germany Tel: 05141/99290-60 Fax: 05141/7648 E-mail: ThWestphal@t-online.de The District Court of Celle opened bankruptcy proceedings against KLW Bauelemente GmbH on June 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KLW Bauelemente GmbH Attn: Andreas Lindmueller, Manager Celler Str. 21 29313 Hambuehren Germany KUL FOOD: Claims Registration Period Ends July 9 ------------------------------------------------ Creditors of Kul Food GmbH have until July 9, 2008 to register their claims with court-appointed insolvency manager Dr. Sebastian Braun. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on July 30, 2008, 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 Offenbach am Main Hall 166N First Floor Kaiserstrasse 16-18 63065 Offenbach am Main Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sebastian Braun Josef-Schmitt-Strasse 10 97922 Lauda-Koenigshofen Germany Tel: 09343/2065 Fax: 09343/3833 The District Court of Offenbach am Main opened bankruptcy proceedings against Kul Food GmbH on June 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kul Food GmbH Benzstr. 22 63110 Rodgau Germany Attn: Hueseyin Kul, Manager Schlesienstr. 5 63110 Rodgau Germany LANSYS GESELLSCHAFT: Claims Registration Period Ends July 11 ------------------------------------------------------------ Creditors of LANSYS Gesellschaft fuer System- und Netzwerktechnik mbH have until July 11, 2008 to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Aug. 13, 2008, 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 Meiningen Hall 105 Lindenallee 15 98617 Meiningen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Meiningen opened bankruptcy proceedings against LANSYS Gesellschaft fuer System- und Netzwerktechnik mbH on June 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LANSYS Gesellschaft fuer System- und Netzwerktechnik mbH Sportplatz 5 98590 Schmalkalden Germany MEDITHERNA GMBH: Claims Registration Period Ends July 11 -------------------------------------------------------- Creditors of Meditherna GmbH have until July 11, 2008, to register their claims with court-appointed insolvency manager Vera Mai. Creditors and other interested parties are encouraged to attend the meeting at 11:40 a.m. on Aug. 13, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 24 Justice Center Jagerallee 10 - 12 14469 Potsdam 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: Vera Mai Kurfuerstendamm 66 10707 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against Meditherna GmbH on June 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Meditherna GmbH Attn: Burkhard Ruelicke, Manager Am Stinthorn 3 14476 Potsdam Germany MFR BAU: Claims Registration Period Ends July 11 ------------------------------------------------ Creditors of MFR Bau GmbH have until July 11, 2008, to register their claims with court-appointed insolvency manager NAME. Creditors and other interested parties are encouraged to attend the meeting at TIME on DATE, 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 Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Bettina Breitenbuecher Gustav-Weisskopf-Str. 4 99092 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against MFR Bau GmbH on June 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MFR Bau GmbH Strasse des Friedens 107 99869 Hochheim Germany SARTRANS GMBH: Claims Registration Period Ends July 10 ------------------------------------------------------ Creditors of SarTrans GmbH & Co.KG have until July 10, 2008 to register their claims with court-appointed insolvency manager Joachim Walterscheid. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 22, 2008, 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 Bielefeld Meeting Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany The Court will verify the claims set out in the insolvency manager's report at 9:00 a.m. on July 31, 2008 at the same venue. Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Walterscheid Kurpark 2 32545 Bad Oeynhausen Germany The District Court of Bielefeld opened bankruptcy proceedings against SarTrans GmbH & Co.KG on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SarTrans GmbH & Co.KG Attn: Thomas Sarnoch, Manager Bergkirchener Str. 307 32429 Minden Germany SK-BUSREISEN GMBH: Claims Registration Period Ends July 11 ---------------------------------------------------------- Creditors of SK-Busreisen GmbH have until July 11, 2008, to register their claims with court-appointed insolvency manager Udo Feser. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cottbus Hall 210 platz 2 Cottbus Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Udo Feser Uhlandstrasse 165/166 10719 Berlin Germany The District Court of Cottbus opened bankruptcy proceedings against SK-Busreisen GmbH on June 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SK-Busreisen GmbH C/o Reisedienst Koenig Leipziger Strasse 50 03253 Doberlug-Kirchhain Germany Attn: Simone Koenig, Manager Tiergartenstrasse 09 03253 Doberlug-Kirchhain Germany SPECTRAL GESELLSCHAFT: Claims Registration Period Ends July 11 -------------------------------------------------------------- Creditors of Spectral Gesellschaft fuer Lichttechnik mit beschrankter Haftung have until July 11, 2008, to register their claims with court-appointed insolvency manager Thilo Braun. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 14, 2008, 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 Freiburg Hall 1 Holzmarkt 2 79098 Freiburg i.Br. 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: Thilo Braun Schillerstr 2 79102 Freiburg i. Br. Germany Tel: 0761-703900 Fax: 0761/7039052 The District Court of Freiburg opened bankruptcy proceedings against Spectral Gesellschaft fuer Lichttechnik mit beschrankter Haftung on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spectral Gesellschaft fuer Lichttechnik mit beschrankter Haftung Boetzingerstr. 31 79111 Freiburg Germany Attn: Heinrich Neuhorst, Manager Steinbruchweg 26 79292 Pfaffenweiler Germany against Spedition MDT GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spedition MDT GmbH Attn: Martin Guenther Deyle, Manager Im Weiherle 1 73312 Geislingen Germany STUIS BAU: Claims Registration Period Ends July 10 -------------------------------------------------- Creditors of Stuis Bau GmbH have until July 10, 2008 to register their claims with court-appointed insolvency manager Hannfried Grauer. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 22, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuerzburg Hall 14 Second Floor Tiepolostrasse 6 Wuerzburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hannfried Grauer Hofstrasse 3 97070 Wuerzburg Germany Tel: 0931/45202950 The District Court of Wuerzburg opened bankruptcy proceedings against Stuis Bau GmbH on June 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Stuis Bau GmbH Attn: Roland Stuis, Manager Wachtelberg 4 97273 Kuernach Germany ============= I R E L A N D ============= TALISMAN-6: S&P Cuts Ratings on Classes E & F Notes on Watch Neg ---------------------------------------------------------------- Standard & Poor's Rating Services has lowered its ratings on the class E and F notes issued by Talisman-6 Finance PLC; these classes remain on CreditWatch with negative implications. At the same time, the class D notes were put on CreditWatch negative. The ratings on the other classes in the transaction are unaffected. The class E and F notes were initially placed on CreditWatch negative on May 16, 2008 after a payment default and transfer into special servicing of the Cherry loan. This was the result of increased uncertainty surrounding the underlying collateral performance, which was highlighted by the servicer. The Cherry loan is secured by 11, predominantly residential properties in East Germany. Most of the assets are in average to good locations, but face strong competition and demographic challenges such as an aging and declining population within their respective micro markets. In addition, some of the assets are in need of refurbishment to continue to attract tenants. S&P understands that the payment default as of the April 2008 interest payment date has not so far been cured, and that there is still a lack of clarity regarding the provision of data. The special servicer, however, continues to work closely with the asset manager and other borrower-related entities to verify the current position. The liquidity facility covers interest shortfalls under the loan in addition to interest on any such drawings and special servicer fees. The liquidity drawing applied toward payment of interest on the class F notes may not exceed EUR950,000, of which EUR259,241.10 was drawn on the April 2008 IPD. There is also an appraisal reduction mechanism that limits liquidity facility drawings by automatically reducing the liquidity facility available following a loan event of default where the up-to-date loan-to-value ratio exceeds 95%. Following the transfer into special servicing, there is a requirement to commission an up-to-date valuation within 30 days. S&P understands from the servicer that an updated valuation report is expected shortly. While the April 2008 IPD reported loan-to-value ratio is 83.79%, this is based on the valuation at closing; S&P considers that there is increased possibility that the current collateral value is lower than at closing and that an appraisal reduction may be triggered. Our concerns therefore remain with regard to both the potential ability to pay debt service in a timely manner and the ability to repay the principal balance at loan maturity in October 2011, or through enforcement. S&P is continuing to evaluate information on the Cherry loan and the Coconut loan, which is also experiencing reporting issues and declining asset performance. S&P expects to resolve the CreditWatch placements and publish a transaction update after receipt of the updated valuation for the Cherry loan. Ratings List Talisman�6 Finance PLC EUR1,076.4 Million Commercial Mortgage-Backed Floating-Rate and Variable-Rate Notes Class To From Ratings Lowered and Remaining on CreditWatch Negative E BB/Watch Neg BBB-/Watch Neg F B/Watch Neg BB/Watch Neg Ratings Placed on CreditWatch Negative D BBB/Watch Neg BBB Ratings Unaffected A AAA X AAA B AA C A =================== K A Z A K H S T A N =================== ALMARAT & K: Claims Deadline Slated for Aug. 1 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Almarat & K insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sain Str. 8-94 Almaty Kazakhstan Tel: 8 777 293 23-15 COTTONY LLP: Claims Filing Period Ends Aug. 1 --------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Cottony insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sain Str. 8-94 Almaty Kazakhstan Tel: 8 777 293 23-15 FASAD LLP: Creditors' Claims Due on Aug. 1 ------------------------------------------ LLP Construction-Trade Firm Fasad has declared insolvency. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: LLP Construction-Trade Firm Fasad Uralskaya Str. 10 Kostanai Kazakhstan GOOD FOOD: Creditors Must File Claims by Aug. 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Good Food Ltd. insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan KARASAI BATYR: Claims Deadline Slated for Aug. 1 ------------------------------------------------ The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Sport-Professional Club Karasai Batyr (RNN 090500211498). Creditors have until Aug. 1 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 MAKSICOM LTD: Claims Filing Period Ends Aug. 1 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Maksicom Ltd insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 NURBASTAU LLP: Claims Registration Ends Aug. 1 ---------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Nurbastau (RNN 091700211113). Creditors have until Aug. 1 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 SAGOR LLP: Creditors' Claims Due on Aug. 1 ------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Sagor insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 STROYTRANS-MOST LLP: Claims Registration Ends Aug. 1 ---------------------------------------------------- LLP Stroytrans-Most has declared insolvency. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: LLP Stroytrans-Most Micro District 13, 4-7 Karaganda Kazakhstan STROYVEK & K: Creditors Must File Claims by Aug. 1 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Stroyvek & K insolvent. Creditors have until Aug. 1, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan =================== K Y R G Y Z S T A N =================== TURAN MC: Creditors Must File Claims by July 30 ----------------------------------------------- Representation of LLC Turan MC has declared insolvency. Creditors have until July 30, 2008 to submit written proofs of claim to: Representation of LLC Turan MC Suyumbaev Str. 14 Bishkek Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: South African Antitrust Agency Raids Highveld Unit --------------------------------------------------------------- The South African competition commission has raided Evraz Group SA's Highveld Steel and Vanadium Corporation Ltd. unit for evidence of collusion between local steelmakers to fix prices, RIA Novosti reports. Local antitrust regulators claim Highveld and ArcelorMittal South Africa Ltd. colluded in fixing steel prices. Regulators said Highveld and ArcelorMittal implemented similar price increases around the same time. Evraz denied the regulators' claim but said it would cooperate in detail with the investigation. 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. * * * Evraz Group S.A. continues to carry Ba2 corporate family rating, Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior Notes due 2015 from Moody's Investors Service, which placed them on review in March 2008 for possible downgrade. The company also carries BB- long-term corporate credit and senior unsecured debt ratings from Standard & Poor's Ratings Services, with positive outlook. The ratings were affirmed in March 2008. Evraz carries BB long-term Issuer Default and senior unsecured ratings and B Short-term Issuer Default rating from Fitch Ratings, with stable outlook. The ratings were affirmed in March 2008. ===================== N E T H E R L A N D S ===================== HIGHLANDER EURO: Moody's Rates US$20.1 Mln Class E Notes at Ba3 --------------------------------------------------------------- Moody's Investors Service has assigned these long-term definitive ratings to five classes of notes issued by Highlander Euro CDO IV B.V., a Dutch special purpose company: -- Aaa to the EUR305,000,000 Class A Senior Secured Floating Rate Notes due 2016, -- Aa2 to the EUR22,500,000 Class B Senior Secured Floating Rate Notes due 2016, -- A2 to the EUR17,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2016, -- Baa3 to the US$23,200,000 Class D Senior Secured Deferrable Floating Rate Notes due 2016, -- Ba3 to the US$20,100,000 Class E Senior Secured Deferrable Floating Rate Notes due 2016, EUR10,650,000 Class F-1 Subordinated Notes and EUR 60,350,000 Class F-2 Subordinated Notes will also be issued but not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity date in August 2016. Such legal final maturity may however be extended subject to certain conditions being satisfied. These ratings are primarily based upon: 1. An assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. The protection against losses through the subordination of the more junior classes of notes to the more senior classes of notes; 3. The expertise of Highland Capital Management Europe Limited as servicer; and 4. The legal and structural integrity of the issue. This transaction is a high yield collateralized loan obligation related to a EUR433,400,000.00 portfolio of mostly European senior loans, mezzanine obligations and high yield bonds (with a predominance of senior secured loans). This portfolio is dynamically managed by Highland Capital Management Europe Limited who is here managing its fourth European CLO. This portfolio will be mostly acquired at closing and the remainder will be acquired during the 5 month ramp-up period in compliance with portfolio guidelines (which include, among other tests, a diversity score test, a weighted average rating factor test and a weighted average spread test). Thereafter, the portfolio of loans will be actively managed during the replenishment period of 2 years (also subject to extension subject to certain conditions being satisfied). After the replenishment period, all proceeds will be paid into the principal waterfall to redeem the notes. While the portfolio will be predominantly denominated in EUR (non EUR assets need to be hedged even if a bucket of unhedged obligations is allowed under certain conditions), the class D and E notes are denominated in US$. The ratings of these classes are therefore quite sensitive to the evolution of the FX rate between EUR and US$. In assigning the rating to Class D and E, Moody's incorporated several sensitivity runs to measure the impact of potential EUR/US$ FX evolutions. This transaction is brought to the market by Citigroup Global Market Limited. PARK MOUNTAIN: Moody's Rates Three Note Classes at Low-B -------------------------------------------------------- Moody's Investors Service assigned these provisional ratings to six classes of notes issued by Park Mountain Lease 2008-I B.V.: -- (P)Aa3 to the EUR[21,450,000] Class A Floating Rate Notes due [June 2016] -- (P)A2 to the EUR[32,150,000] Class B Floating Rate Notes due [June 2016] -- (P)Baa3 to the EUR[40,200,000] Class C Floating Rate Notes due [June 2016] -- (P)Ba1 to the EUR[16,100,000] Class D Floating Rate Notes due [June 2016] -- (P)Ba3to the EUR[16,100,000] Class E Floating Rate Notes due [June 2016] -- (P)B2 to the EUR[21,450,000] Class F Floating Rate Notes due [June 2016] The provisional ratings address the expected loss posed to investors by the legal final maturity date in [June 2016]. The provisional ratings of the notes are based upon: (1) An assessment of the credit quality and diversity of the underlying reference entities in the static portfolio; (2) The loss protection provided by the subordination of the more junior ranking classes of notes and the loss threshold; (3) The legal and structural integrity of the transaction. Park Mountain Lease 2008-I B.V. is a partially funded synthetic transaction arranged by Fortis Bank N.V./S.A., in which investors are exposed to the credit risk related to a portfolio of mainly lease contracts originated by local entities of Fortis Lease Group to primarily SMEs in Belgium, the Netherlands and the United Kingdom. Fortis Lease Group is fully owned by and integrated in Fortis. The credit risk transferred by Fortis is related to a total portfolio of approximately EUR[2,679] million. This reference pool is made up initially of [164,777] claims to [77,746] entities. The portfolio is static. There will be no excess spread available in the transaction. The priority of payment will be pro-rata for the senior unfunded piece and classes A to F at closing, but switch to sequential upon breach of certain performance triggers. The credit event in this transaction includes bankruptcy, failure to pay, and restructuring. Loss allocation is done in reverse sequential order starting with the threshold amount. The notes are scheduled to mature in [June 2013] but may mature earlier should an early call option or the clean up call option be exercised. The legal final maturity of the transaction is in [June 2016]. 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 provisional rating. X5 RETAIL: Inks Deal to Complete Formata Holding Acquisition ------------------------------------------------------------ X5 Retail Group N.V. has signed an agreement with shareholders of Formata Holding B.V., owner of the Karusel hypermarket chain, for the acquisition of the entire issued share capital in Formata and related intellectual property for a total amount of approximately US$940 million, including an in-kind payment of 6,986,020 X5 GDRs at a provisional value of US$33.10 per GDR. The acquisition of Formata is expected to complete before 28 June 2008. X5 and the shareholders of Formata have today signed a share purchase agreement that provides for the transfer of the entire issued share capital in Formata before 28 June 2008. The purchase price payable by X5 was calculated in accordance with a formula set out in the Call Option Agreement and amounts to approximately US$925 million, which includes: the value of Karusel's operational business as at Dec. 31, 2007, in the amount of US$914 million; its land and other real estate in the course of construction (where business was not carried out as at Dec. 31, 2007) in the amount of US$148 million, as determined by an internationally recognized independent real estate appraiser; less its net debt as at Dec 31, 2007, in the amount of US$137 million. The land and other real estate under construction include a hypermarket that was opened in the first half of 2008, three hypermarkets under construction, and eight land plots potentially suitable for hypermarket construction. In accordance with the terms of the Call Option Agreement, X5 has elected to settle 25% of the purchase price with newly issued X5 shares (which are expected to be converted into GDR form), at a provisional value of US$33.10 per GDR. For this purpose, in line with authorization by shareholders at the EGM held on April 21, 2008, the Supervisory Board has approved the issuance of 1,746,505 new shares (equivalent to 6,986,020 GDRs) and the exclusion of pre-emptive rights with respect to this issuance. The provisional GDR price is calculated in accordance with the Call Option Agreement, based on the average weighted price for 30 days preceding the exercise date (Jan. 2, 2008). The final GDR price is subject to confirmation by London Stock Exchange within 30 days after the signing. The balance of the purchase price will be paid in cash. X5 has also entered into an additional agreement with Andrei Rogachev, one of the beneficial owners of Formata, and a company controlled by him to acquire certain intellectual property for use in Karusel�s business (including Karusel�s business platform, brands, patents, licenses, IT and other relevant documentation) for a consideration of US$15 million payable after the completion of the transaction. At signing, the Grantors have disclosed that Formata has entered into real estate development contracts with affiliates of Donson B.V. to build eight additional hypermarkets. In connection with these contracts, Formata has made some significant prepayments to Donson. As a part of their contractual obligations, the Grantors warranted that there are no other material contracts or obligations of Formata in favour of persons connected with the Grantors. The Grantors have also warranted that total gross debt outstanding at closing will not exceed RUR10.3 billion. The Company has been aware of certain of these matters in the course of the earlier negotiations (as it became disclosed in the Karusel�s financial statements for 2007). The Company has indicated to the Grantors its position that such contracts and commitments do not accord with Grantors' obligations under the Call Option Agreement. The Company is considering how best to resolve this outstanding issue. Goldman Sachs is acting as financial advisor, Lovells � as legal advisor to X5 Retail Group on the acquisition of Formata. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * X5 Retail Group N.V. continues to carry a B1 Corporate Family Rating from Moody's Investors Service with positive outlook. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. =========== P O L A N D =========== AMERICAN AXLE: Moody's Cuts Corporate Family Rating to B1 --------------------------------------------------------- Moody's Investors Service lowered American Axle & Manufacturing Holdings, Inc.'s Corporate Family Rating to B1 from Ba3, as well as the senior unsecured rating to B1 from Ba3 on American Axle & Manufacturing, Inc.'s notes and term loan. The outlook is stable. The Speculative Grade Liquidity Rating also has been lowered to SGL-3 from SGL-2. In taking the rating action, Moody's noted that American Axle's new labor agreement meaningfully improves the company's cost position and is considered a positive credit development. However, according to Tim Harrod, Vice President of Moody's, "even with the benefits of its new labor agreement, American Axle's significant exposure to declining truck/SUV volumes at Big-3 U.S. auto makers will result in near term financial metrics that are more consistent with the B1 rating category". The rating action concludes the ratings review initiated on April 2, 2008 as the company's UAW work stoppage at five facilities in Michigan and New York involving approximately 3,650 UAW employees neared its sixth week. The underlying issues involved, among other items, American Axle's goal of reducing its all-in hourly labor cost, estimated to be approximately US$73.48, to levels competitive with other domestic automotive suppliers. The strike concluded with the ratification of new labor agreements on May 23, 2008 that significantly lowered the company's labor costs. According to American Axle, the new labor agreements are expected to generate over US$300 million in annual cost reductions, in part due to the reduction of all-in hourly labor costs by about 50% on a blended average basis, to a range of US$30 to US$45 per hour. The company should also benefit from structural cost reductions stemming from a reduction of about 2,000 hourly positions over the next year through a combination of buyouts, early retirement incentives, and plant closings. The cost of implementing the workforce reduction is expected to range from US$400 million to US$450 million, the majority of which should be incurred during 2008. In implementing this program, American Axle will receive US$215 million in financial assistance from its principal customer, General Motors. The reduced labor costs achieved with the new labor contract could mark a watershed event in American Axle's history and meaningfully enhance the company's long term competitiveness as an auto parts supplier. However, given the current market conditions, the full benefits of the new contract may not be realized for several years. American Axle's business is heavily concentrated in the supply of drivetrain components for light trucks and SUV's, particularly for North American manufacturers such as General Motors. Recent new business awards should increase diversification into passenger cars and crossover vehicles, and include important new relationships with non-US auto makers. Nevertheless, for the foreseeable future, over 60% of revenues will continue to be derived from North American light truck volumes. Given the continuing erosion of demand for SUV's and light trucks in the wake of high fuel costs, American Axle has faced, and may continue to face, large reductions in order volumes from key North American auto makers, which will continue to weigh on its financial results. In light of the potential for sustained weakness in revenues, and the likelihood that restructuring and headcount reduction initiatives will consume cash during the near term, Moody's anticipates that American Axle's financial metrics will not support maintenance of the Ba3 rating over the next 12 to 18 months resulting in the rating downgrade. The Speculative Grade Liquidity Rating to SGL-3, reflects the expectation of negative free cash flow over the next twelve months as a result of restructuring costs and the weakening automobile production in North America. At March 31, 2008 the company reported US$315 million of cash and had US$572 million of availability under the company's US$600 million revolving credit facility. Principal financial covenants measure net debt to EBITDA and net worth. Both covenants exclude special/one- time items such as the impact of the work stoppages and costs related to restructuring under the new labor agreement. However, cushions under the financial covenants are expected to diminish over the second half of 2008 reflecting the impact of lower production in North America on the company's key platforms. Covenant cushions should improve into 2009 as the benefits of the new labor agreements more favorably impact operations. However, this improvement could be tempered if vehicle production pressure in North America persists. All of the company's bank obligations and notes are currently unsecured, which establishes some flexibility to generate alternative liquidity, subject to lien baskets and sale/leaseback limitations in the respective indentures. While near term financial metrics will remain under pressure, the rating outlook is stable at the B1 rating level reflecting Moody's expectation that with the improved cost structure provided by its new labor agreement, American Axle should be able to achieve improved financial performance during 2009. The rating anticipates that recent new business wins should enable the company to reduce its reliance on the North American light truck market and enhance its long term business position. Importantly, the rating anticipates that American Axle will maintain adequate liquidity and financial flexibility to execute the business transition that should yield improved financial metrics by 2009. Ratings lowered: American Axle & Manufacturing Holdings, Inc. -- Corporate Family, to B1 from Ba3 -- Probability of Default, to B1 from Ba3 -- Unsecured guaranteed convertible note, to B1 (LGD4, 54 %) from Ba3 (LGD4, 56%) American Axle & Manufacturing, Inc. -- Unsecured guaranteed notes, to B1 (LGD4, 54 %) from Ba3 (LGD4, 56%) -- Unsecured guaranteed term loan, to B1 (LGD4, 54 %) from Ba3 (LGD4, 56%) -- Speculative Grade Liquidity Rating to SGL-3 from SGL-2 Holdings' obligations are guaranteed by American Axle and vice versa. The last rating action was on April 2, 2008 when American Axle's ratings were placed under review and the Speculative Grade Liquidity Rating was lowered to SGL-2. American Axle & Manufacturing, Inc., headquartered in Detroit, MI, is a world leader in the manufacture, design, engineering and validation of driveline systems and related components and modules, chassis systems, and metal formed products for light truck, SUV's and passenger cars. The company has manufacturing locations in the USA, Mexico, the United Kingdom, Brazil, China and Poland. The company reported revenues of US$3.2 billion in 2007. =========== R U S S I A =========== BURENKA LLC: Creditors Must File Claims by July 7 ------------------------------------------------- Creditors of LLC Diary Complex Burenka have until July 7, 2008, to submit proofs of claim to: R. Mochalin Temporary Insolvency Manager Apt. 118 Adm.Lazareva Str. 29 117042 Moscow Russia The Arbitration Court of Tula commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A68-979/08-27/B-08. The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: R. Mochalin Temporary Insolvency Manager Apt. 118 Adm.Lazareva Str. 29 117042 Moscow Russia EVRAZ GROUP: South African Antitrust Agency Raids Highveld Unit --------------------------------------------------------------- The South African competition commission has raided Evraz Group SA's Highveld Steel and Vanadium Corporation Ltd. unit for evidence of collusion between local steelmakers to fix prices, RIA Novosti reports. Local antitrust regulators claim Highveld and ArcelorMittal South Africa Ltd. colluded in fixing steel prices. Regulators said Highveld and ArcelorMittal implemented similar price increases around the same time. Evraz denied the regulators' claim but said it would cooperate in detail with the investigation. 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. * * * Evraz Group S.A. continues to carry Ba2 corporate family rating, Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior Notes due 2015 from Moody's Investors Service, which placed them on review in March 2008 for possible downgrade. The company also carries BB- long-term corporate credit and senior unsecured debt ratings from Standard & Poor's Ratings Services, with positive outlook. The ratings were affirmed in March 2008. Evraz carries BB long-term Issuer Default and senior unsecured ratings and B Short-term Issuer Default rating from Fitch Ratings, with stable outlook. The ratings were affirmed in March 2008. IGROTEKA PLUS: Creditors Must File Claims by July 7 --------------------------------------------------- Creditors of CJSC Igroteka Plus have until July 7, 2008, to submit proofs of claim to: A. Fomin Temporary Insolvency Manager Building 1 Planetnaya Str. 29 125167 Moscow Russia The Arbitration Court of Moscow will convene on Aug. 19, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A41-6120/08. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Igroteka Plus Krasnaya Gora 15 Zvenigorod Moscow Russia ITALY-FASHION CJSC: Moscow Bankruptcy Hearing Set September 2 ------------------------------------------------------------- The Arbitration Court of Moscow will convene on Sept. 2, 2008, to hear the bankruptcy supervision procedure on CJSC Italy- Fashion. The case is docketed under Case No. A40-13574/ 08-74-44 B. The Temporary Insolvency Manager is: L. Serdyuk Apt. 6 Building 3 Moldagulovoy Str. 16 111395 Moscow Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Italy-Fashion Building 2 Tatarskaya Str. 5 115054 Moscow Russia MAGCENTRE LLC: Moscow Bankruptcy Hearing Slated for October 21 -------------------------------------------------------------- The Arbitration Court of Moscow will convene at 10:00 a.m. on Oct. 21, 2008, to hear the bankruptcy supervision procedure on LLC Magcentre. The case is docketed under Case No. A40-20649/ 08-38-61B. The Temporary Insolvency Manager is: A. Kalmykov Apt. 89 Building 1 Butlerova Str. 38 117342 Moscow Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Magcentre Apt. 54 Building 6 Luchnikov Per. 7/4 Moscow Russia MILK LLC: Creditors Must File Claims by July 7 ---------------------------------------------- Creditors of LLC Milk have until July 7, 2008, to submit proofs of claim to: V. Ivanov Temporary Insolvency Manager Gaya Str. 23A 460000 Orenburg Russia The Arbitration Court of Orenburg will convene at 1:00 p.m. on Aug. 19, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A47-1773/ 2008-14GK. The Court is located at: The Arbitration Court of Orenburg 9 Janvarya Str. 64 460046 Orenburg Russia The Debtor can be reached at: LLC Milk Severnaya Str. 12 Kuvyndyk 462242 Orenburg Russia SENEMI CJSC: Creditors Must File Claims by August 7 --------------------------------------------------- Creditors of CJSC Senemi have until Aug. 7, 2008, to submit proofs of claim to: L. Salova Insolvency Manager Post User Box 1337 350049 Krasnodar Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-4570/2007-27/157-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: CJSC Senemi Garazhnaya Str. 67 Krasnodar Russia SEVERSTAL OAO: Plans Another U.S. Asset Acquisition --------------------------------------------------- OAO Severstal has submitted an offer to acquire coal mining assets in the United States, Polina Devitt writes for Reuters. According to the Severstal's loan prospectus, Reuters relates, the acquisition is aimed at securing long-term supply of coal to its expanded operations in the United States. The company said its acquisition strategy is primarily focused on the CIS and the United States, with US$16.3 billion in funds for its 2008-2012 capital expenditure program. "The group may also acquire or develop steel operations in regions expected to provide high levels of growth in demand, particularly where low-cost sources of raw materials and other production inputs are readily available. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As reported in the TCR-Europe on June 23, 2008, Fitch Ratings has upgraded OAO Severstal's Long-term Issuer Default and senior unsecured ratings to 'BB' from 'BB-', and its National Long-term rating to 'AA-(rus)' from 'A+(rus)'. Following the upgrade, the Outlooks on the Long-term IDR and National Long-term rating are now Stable. At the same time, Severstal's Short-term IDR is affirmed at 'B'. OAO Severstal continues to carry Ba2 Corporate Family, Senior Unsecured Debt and Probability-of-Default ratings from Moody's Investor Service, which said the the outlook on all ratings is stable. Moody's raised the company's ratings to its current level in October 2007. The company also carries BB long-term Foreign and Local Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. TUMENENERGOBANK: Moody's Puts B3/NP/E+/Baa3.ru Ratings ------------------------------------------------------ Moody's Investors Service has assigned these global scale ratings to TumenEnergoBank: -- B3 long-term and Not-Prime short-term foreign and local currency deposit ratings and; an -- E+ bank financial strength rating. The outlook for all ratings is stable. At the same time, Moody's Interfax Rating Agency has assigned a Baa3.ru long-term national scale credit rating to TEB. 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 B3/NP/E+ global scale ratings assigned to TEB reflect its global default and loss expectation, while the Baa3.ru NSR reflects the standing of the bank's credit quality relative to its domestic peers. Moody's notes that the ratings are constrained by: (i) the bank's heavy involvement in related-party lending; (ii) the high single-party and industry concentration of TEB's loan book; (iii) the lack of transparency with regard to its relations with some large corporate clients and (iv) an insufficient level of economic capital to absorb potential losses. At the same time, the ratings are supported by TEB's recognised brand name and solid retail deposit-taking franchise in its home region (selective districts in Western Siberia) as well as its longstanding relations with a number of large corporate clients. The B3/NP local currency deposit ratings do not incorporate any expectation of support from the bank's owners. In Moody's view, although such support cannot be ruled out, its scope and timeliness are rather uncertain. Nor do the ratings incorporate any expectation of support from the Russian financial authorities as this would be unlikely given TEB's size and market position. According to Moody's, if TEB were to display significant success in reducing its involvement in related-party lending and also generally improve the quality of its assets and increase industry and borrower diversification, this would likely lead to positive rating pressure. Conversely, further growth in related-party loans and/or deterioration in the bank's asset quality -- in particular, increased concentration and a higher share of non-performing loans, as well as a decline in economic capital available for absorbing potential losses -- could lead to a downgrade of TEB's BFSR. Headquartered in Tyumen, in the Russian Federation's Western Siberia region, TEB reported total IFRS consolidated assets of RUR17.5 billion (US$714 million) as of Dec. 31, 2007 and ranked as the 118th largest Russian bank by assets at the same date, according to RBC. It reported net consolidated income of RUR334 million (US$13.6 million) in 2007. VTOVAZ-LYUBLINO CJSC: Creditors Must File Claims by July 7 ---------------------------------------------------------- Creditors of CJSC Avtovaz-Lyublino have until July 7, 2008, to submit proofs of claim to: A. Fomin Temporary Insolvency Manager Building 1 Planetnaya Str. 29 125167 Moscow Russia The Arbitration Court of Moscow will convene on Aug. 19, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A40-15916/08-71-30B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Avtovaz-Lyublino Stavropolskaya Str. 41 Zagorodnaya Str. 171 109559 Moscow Russia X5 RETAIL: Inks Deal to Complete Formata Holding Acquisition ------------------------------------------------------------ X5 Retail Group N.V. has signed an agreement with shareholders of Formata Holding B.V., owner of the Karusel hypermarket chain, for the acquisition of the entire issued share capital in Formata and related intellectual property for a total amount of approximately US$940 million, including an in-kind payment of 6,986,020 X5 GDRs at a provisional value of US$33.10 per GDR. The acquisition of Formata is expected to complete before 28 June 2008. X5 and the shareholders of Formata have today signed a share purchase agreement that provides for the transfer of the entire issued share capital in Formata before 28 June 2008. The purchase price payable by X5 was calculated in accordance with a formula set out in the Call Option Agreement and amounts to approximately US$925 million, which includes: the value of Karusel's operational business as at Dec. 31, 2007, in the amount of US$914 million; its land and other real estate in the course of construction (where business was not carried out as at Dec. 31, 2007) in the amount of US$148 million, as determined by an internationally recognized independent real estate appraiser; less its net debt as at Dec 31, 2007, in the amount of US$137 million. The land and other real estate under construction include a hypermarket that was opened in the first half of 2008, three hypermarkets under construction, and eight land plots potentially suitable for hypermarket construction. In accordance with the terms of the Call Option Agreement, X5 has elected to settle 25% of the purchase price with newly issued X5 shares (which are expected to be converted into GDR form), at a provisional value of US$33.10 per GDR. For this purpose, in line with authorization by shareholders at the EGM held on April 21, 2008, the Supervisory Board has approved the issuance of 1,746,505 new shares (equivalent to 6,986,020 GDRs) and the exclusion of pre-emptive rights with respect to this issuance. The provisional GDR price is calculated in accordance with the Call Option Agreement, based on the average weighted price for 30 days preceding the exercise date (Jan. 2, 2008). The final GDR price is subject to confirmation by London Stock Exchange within 30 days after the signing. The balance of the purchase price will be paid in cash. X5 has also entered into an additional agreement with Andrei Rogachev, one of the beneficial owners of Formata, and a company controlled by him to acquire certain intellectual property for use in Karusel�s business (including Karusel�s business platform, brands, patents, licenses, IT and other relevant documentation) for a consideration of US$15 million payable after the completion of the transaction. At signing, the Grantors have disclosed that Formata has entered into real estate development contracts with affiliates of Donson B.V. to build eight additional hypermarkets. In connection with these contracts, Formata has made some significant prepayments to Donson. As a part of their contractual obligations, the Grantors warranted that there are no other material contracts or obligations of Formata in favour of persons connected with the Grantors. The Grantors have also warranted that total gross debt outstanding at closing will not exceed RUR10.3 billion. The Company has been aware of certain of these matters in the course of the earlier negotiations (as it became disclosed in the Karusel�s financial statements for 2007). The Company has indicated to the Grantors its position that such contracts and commitments do not accord with Grantors' obligations under the Call Option Agreement. The Company is considering how best to resolve this outstanding issue. Goldman Sachs is acting as financial advisor, Lovells � as legal advisor to X5 Retail Group on the acquisition of Formata. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * X5 Retail Group N.V. continues to carry a B1 Corporate Family Rating from Moody's Investors Service with positive outlook. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. ZELENCHUKSKIE NETWORK: Creditors Must File Claims by July 7 ----------------------------------------------------------- Creditors of OJSC Zelenchukskie Network System have until July 7, 2008, to submit proofs of claim to: N-M Khabichev Temporary Insolvency Manager Post User Box 95 Central Post Office Cherkessk 369000 Karachaevo Cherkessiya Russia The Arbitration Court of Karachaevo Cherkessiya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A25-531/08-10. The Debtor can be reached at: OJSC Zelenchukskie Network System 400131 Karachaevo Cherkessiya Russia =========== T U R K E Y =========== TURKIYE GARANTI: Fitch Rates Foreign Currency IDR at BB ------------------------------------------------------- Fitch Ratings has affirmed Turkiye Garanti Bankasi A.S.'s ratings at: -- Long-term foreign currency Issuer Default Rating: 'BB'; Outlook Stable -- LT local currency IDR: 'BBB-'; Outlook Stable -- Short-term FC IDR: 'B' -- ST LC IDR: 'F3' -- National LT rating: 'AAA(tur)'; Outlook Stable -- Individual rating: 'C' -- Support Rating: 4 -- Support Rating Floor: B+ The Foreign Currency LT IDR is constrained by Turkey's 'BB' Country Ceiling; the Local Currency Long-Term IDR is two notches above the Local Currency sovereign rating, reflecting the bank's financial strength. Upside for the Individual Rating is limited given Turkey's longstanding volatile environment. Were asset quality and/or capital ratios to weaken materially, the ratings could come under pressure but this is considered unlikely in the short-term. Though Fitch believes that support, if needed, might be provided by GE Consumer Finance and Dogus Group, Garanti's strategic shareholders, given its importance to the local banking system, the Turkish government should be regarded as the most reliable source of support. The sovereign's ability to provide this is considered moderate given Turkey's Long-Term Foreign Currency IDR. Garanti's IDRs are driven by its intrinsic financial strength. This is reflected in good operating profitability spurred by rapid expansion into retail segments, improved market shares and the benefits (management and operational support) obtained from GECF. Loan growth remains above sector averages but capital ratios are being protected through retained earnings, subordinated debt issuance, asset sales and a TRY666 million capital injection scheduled for second half of 2008. Net income in 2007 was boosted by one-off TRY851.6 million gains on disposals of insurance and pension assets; at core operating level, performance ratios show marginal improvement but as Garanti further builds its franchise in the profitable consumer segments, margins should improve. A stable funding base (62% of deposits) is a major strength and longer-term funding is being built up. A 10-year US$500 million subordinated loan raised in February 2007 is included as Tier 2 capital by the regulators. Garanti is Turkey's third largest private bank, with a 12% share in total unconsolidated assets at end-2007. It is 30.15% controlled by Dogus Group (rated 'BB+') and 20.85% by GECF. ============= U K R A I N E ============= BELMTZCENTER LLC: Creditors Must File Claims by July 6 ------------------------------------------------------ Creditors of LLC Belmtzcenter (code EDRPOU 33051167) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B 18/303-08. The Debtor can be reached at: LLC Belmtzcenter Khreschatik Str. 10 Boyarka Kiev Ukraine CONSTANTA-GROUP LLC: Creditors Must File Claims by July 6 --------------------------------------------------------- Creditors of LLC Constanta-Group (code EDRPOU 32883717) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on May 28, 2008. The case is docketed as 24/84-b. The Debtor can be reached at: LLC Constanta-Group Boguslavsky Slope 3 04080 Kiev Ukraine ECOPLAST LLC: Creditors Must File Claims by July 6 -------------------------------------------------- Creditors of LLC Ecoplast (code EDRPOU 32584190) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on May 27, 2008. The case is docketed as 14/2293. The Debtor can be reached at: LLC Ecoplast Sumgaitskaya Str. 17 18029 Cherkassy Ukraine ENERGOATOM: Creditors File UAH28.1 Mln. Suit Ahead of Moratorium ---------------------------------------------------------------- (pius/bloomberg) Creditors of DP NAEK Energoatom filed a UAH28.1 million (US$6 million) suit against the company on June 3, 2008, Kateryna Choursina of Bloomberg reports. The filing came ahead of the reinstatement of a moratorium on bankruptcy proceedings against state owned power companies on June 3, 2008. The moratorium was approved by the Constitutional Court on May 22, 2008. Ms. Ilona Zayats, a spokeswoman for Energoatom, said, "The charges destabilized operations of the company. Power plants have not been receiving money for two weeks." DP NAEK Energoatom is a Ukrainian state owned nuclear power plant operator with 15 nuclear power reactors. FOOD-SERVICE 2005: Creditors Must File Claims by July 6 ------------------------------------------------------- Creditors of LLC Food-Service 2005 (code EDRPOU 33501513) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 4, 2008. The case is docketed as 24/20-b. The Debtor can be reached at: LLC Food-Service 2005 Gagarin Str. 27 Brovary 07400 Kiev Ukraine KHARKOVRESOURCE LTD: Creditors Must File Claims by July 6 --------------------------------------------------------- The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on May 30, 2008. The case is docketed as B-19/73-08. Creditors of LLC Kharkovresource Ltd. (code EDRPOU 35243633) have until July 6, 2008, to submit proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Kharkovresource Ltd. Sergey Gritsevets Str. 54 b. A 61172 Kharkov Ukraine KOLOS AGRICULTURAL: Creditors Must File Claims by July 6 -------------------------------------------------------- Creditors of Agricultural LLC Kolos (code EDRPOU 03793165) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on May 30, 2008. The case is docketed as 10/3557. The Debtor can be reached at: Agricultural LLC Kolos Skorikovka Zolotonosha District 19370 Cherkassy Ukraine SLAVMETTRADE LLC: Creditors Must File Claims by July 6 ------------------------------------------------------ Creditors of LLC Slavmettrade (code EDRPOU 34731186) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 4, 2008. The case is docketed as 24/91-b. The Debtor can be reached at: LLC Slavmettrade Kotelnikov Str. 51 03115 Kiev Ukraine SOUTH METAL: Creditors Must File Claims by July 6 ------------------------------------------------- Creditors of LLC South Metal (code EDRPOU 34574294) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 4, 2008. The case is docketed as 24/92-b. The Debtor can be reached at: LLC South Metal Veresnevaya Str. 15 02099 Kiev Ukraine TECHNOFOR LLC: Creditors Must File Claims by July 6 --------------------------------------------------- Creditors of LLC Innovative Company Technofor (code EDRPOU 31958387) have until July 6, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on May 28, 2008. The case is docketed as 24/85-b. The Debtor can be reached at: LLC Innovative Company Technofor Podgormaya/Tatarskaya Str. 3/7 04107 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ACXIOM CORP: S&P Keeps Low-B Ratings; Outlook Revised to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Little Rock, Ark.-based Acxiom Corp. to stable from negative. At the same time, S&P affirmed our 'BB' corporate credit rating and 'BB+' senior secured rating on the company. "The outlook revision follows our review of the business and financial strategy with Acxiom's new CEO, and our current expectation that the company will maintain a moderate financial policy in the near term following the termination of its attempted LBO," said Standard & Poor's credit analyst Molly Toll-Reed. The rating on Acxiom reflects the company's good niche market position and adequate cash flow. Business risk is tempered by Acxiom's expertise in managing its comprehensive consumer databases. More than half of its direct-marketing assignments are performed for long-term clients, and outsourcing contracts generally cover multiple years, offsetting a concentrated customer base and providing some revenue predictability. However, the company is still a relatively small participant in a growing and fragmented industry that may see the entrance of several much larger competitors. AIRE VALLEY 2004-1: Fitch Affirms Classes D1 and D2 Notes at BB --------------------------------------------------------------- Fitch Ratings has affirmed 49 UK RMBS tranches issued from the Funding 1 beneficiary of Bradford and Bingley's Aire Valley Master Trust Program. This affirmation follows remedial action taken by B&B to post collateral in line with Fitch's criteria for swap counter-parties after its Long- and Short-term Issuer Default Ratings were downgraded. On June 2, Fitch downgraded B&B's Long-term IDR to 'A-' from 'A' and placed it on Rating Watch Negative. The Short-term IDR was downgraded to 'F2' from 'F1' and the Individual rating to 'B/C' from 'B'. The downgrade on June 2, meant that B&B no longer satisfied Fitch's swap counter-party criteria that requires the basis swap provider to maintain Long- and Short-term IDRs of 'A' and 'F1', respectively. A number of solutions were available to B&B, including its replacement as swap provider, a guarantee from a third party with sufficiently strong ratings or posting of collateral within 30 calendar days of the downgrade. "Following a review of B&B and an evaluation of B&B's swap exposure to its existing RMBS and covered bond programs, Fitch is satisfied that, at present, the posting of collateral is an appropriate mitigating factor to de-link the ratings of B&B as swap counterparty from the ratings of the outstanding notes of Aire Valley, thereby avoiding any adverse rating action with respect to the notes," says Francesca Zwolinsky, Director in Fitch's RMBS team. Nevertheless, Fitch observes that the Long-term IDR of B&B is on RWN which it expects to resolve in three to six months. However, Fitch considers that the size of the collateral required at present forms an acceptable proportion of B&B's overall funding needs. The agency also notes that, if necessary, B&B is at present able to find a replacement counter- party. Fitch will continue to closely monitor B&B's swap exposure and any events likely to influence the bank's ratings. The agency will make further commentary and take appropriate rating action with respect to the notes issued by Aire Valley as events warrant. The rating actions are: Aire Valley Mortgages 2004-1 plc: -- Series 2 Class B1 (ISIN XS0201882270): affirmed at 'AA'; Outlook Stable -- Series 2 Class B2 (ISIN XS0201882510): affirmed at 'AA'; Outlook Stable -- Series 2 Class C1 (ISIN XS0201882940): affirmed at 'BBB'; Outlook Stable -- Series 2 Class C2 (ISIN XS0201883088): affirmed at 'BBB'; Outlook Stable -- Series 3 Class A1 (ISIN XS0201883328): affirmed at 'AAA'; Outlook Stable -- Series 3 Class A2 (ISIN XS0201883674): affirmed at 'AAA'; Outlook Stable -- Series 3 Class B1 (ISIN XS0201883914): affirmed at 'AA'; Outlook Stable -- Series 3 Class B2 (ISIN XS0201884300): affirmed at 'AA'; Outlook Stable -- Series 3 Class C1 (ISIN XS0201884649): affirmed at 'BBB'; Outlook Stable -- Series 3 Class C2 (ISIN XS0201885026): affirmed at 'BBB'; Outlook Stable -- Series 3 Class D1 (ISIN XS0201885455): affirmed at 'BB'; Outlook Stable -- Series 3 Class D2 (ISIN XS0202219258): affirmed at 'BB'; Outlook Stable Aire Valley Mortgages 2005-1 plc: -- Series 1 Class A1 (ISIN XS0217564409): affirmed at 'AAA'; Outlook Stable -- Series 1 Class A2 (ISIN XS0217565554): affirmed at 'AAA'; Outlook Stable -- Series 1 Class B1 (ISIN XS0217566875): affirmed at 'AA'; Outlook Stable -- Series 1 Class B2 (ISIN XS0217566958): affirmed at 'AA'; Outlook Stable -- Series 1 Class C2 (ISIN XS0217567683): affirmed at 'BBB'; Outlook Stable -- Series 2 Class A1 (ISIN XS0217567766): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A2 (ISIN XS0217568061): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A3 (ISIN XS0217568145): affirmed at 'AAA'; Outlook Stable -- Series 2 Class B1 (ISIN XS0217568491): affirmed at 'AA'; Outlook Stable -- Series 2 Class B2 (ISIN XS0217568814): affirmed at 'AA'; Outlook Stable -- Series 2 Class C2 (ISIN XS0217569119): affirmed at 'BBB'; Outlook Stable Aire Valley Mortgages 2006-1 plc: -- Series 1 Class A (ISIN XS0264186585): affirmed at 'AAA'; Outlook Stable -- Series 1 Class B1 (ISIN XS0264187393): affirmed at 'AA'; Outlook Stable -- Series 1 Class B2 (ISIN XS0264191742): affirmed at 'AA'; Outlook Stable -- Series 1 Class B3 (ISIN XS0264194258): affirmed at 'AA'; Outlook Stable -- Series 1 Class C2 (ISIN XS0264192716): affirmed at 'BBB'; Outlook Stable -- Series 2 Class A1 (ISIN XS0264192989): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A2 (ISIN XS0264197517): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A3 (ISIN XS0264197780): affirmed at 'AAA'; Outlook Stable -- Series 2 Class B2 (ISIN XS0264193284): affirmed at 'AA'; Outlook Stable -- Series 2 Class B3 (ISIN XS0264197863): affirmed at 'AA'; Outlook Stable -- Series 2 Class C2 (ISIN XS0264193797): affirmed at 'BBB'; Outlook Stable Aire Valley Mortgages 2007-1 plc: -- Series 1 Class A1 (ISIN XS0298402883): affirmed at 'AAA'; Outlook Stable -- Series 1 Class A2 (ISIN XS0298403691): affirmed at 'AAA'; Outlook Stable -- Series 1 Class A3 (ISIN XS0298409466): affirmed at 'AAA'; Outlook Stable -- Series 1 Class B (ISIN XS0298410126): affirmed at 'AA'; Outlook Stable -- Series 1 Class C (ISIN XS0298410555): affirmed at 'BBB'; Outlook Stable -- Series 2 Class A1 (ISIN XS0298411017): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A2 (ISIN XS0298412841): affirmed at 'AAA'; Outlook Stable -- Series 2 Class A3 (ISIN XS0298413229): affirmed at 'AAA'; Outlook Stable -- Series 2 Class B (ISIN XS0298413658): affirmed at 'AA'; Outlook Stable -- Series 2 Class C (ISIN XS0298415273): affirmed at 'BBB'; Outlook Stable Aire Valley Mortgages 2007-2 plc: -- Class 1A1 (ISIN XS0329886526): affirmed at 'AAA'; Outlook Stable -- Class 1A2 (ISIN XS0329904956): affirmed at 'AAA'; Outlook Stable -- Class 1A3 (ISIN XS0329905508): affirmed at 'AAA'; Outlook Stable -- Class 1B (ISIN XS0329906225): affirmed at 'AA'; Outlook Stable -- Class 1C (ISIN XS0329907116): affirmed at 'BBB'; Outlook Stable AMTRAK EXPRESS: Brings In Liquidators from KPMG ----------------------------------------------- Mark Jeremy Orton and Allan Watson Graham of KPMG Corporate Recovery were appointed joint liquidators of Amtrak Express Parcels Ltd. on June 13 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: KPMG Corporate Recovery 2 Cornwall Street Birmingham B3 2DL England BAA LTD: Calls for a Third Runway at Heathrow --------------------------------------------- BAA Ltd. reiterated the need for a third runway at Heathrow amid opposition from lobby groups, BBC News reports. BAA, BBC relates, also snubbed a call to reduce transfer passenger numbers to lessen airport load, dismissing it as a "false choice." "We do need the new capacity at Heathrow today in order to maintain its role, the way London and the country connects to the rest of the world," Colin Matthews, chief executive of BAA, told BBC. "If we don't have transfer traffic, we can't fulfill that role." The number of Heathrow's transfer passengers has increased to 23 million in 2007 from 19 million in 2000, BBC discloses. London First, a business lobby group, argued improvements in the existing airport should be prioritized over expansion. Meanwhile, environmentalists expressed concerns over the impact of the expansion on thousands of homes in the area, BBC reveals. The government, the paper adds, is expected to decide later this year on whether to go ahead with a third runway. About BAA Ltd. Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc) -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. * * * BAA Ltd. continues to carry BB- long-term corporate credit rating from Standard & Poor's Ratings Services, which said the Outlook is negative. ECO-BAT TECH: S&P Keeps B+ Rating; Outlook Revised to Positive -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on U.K.- based lead producer Eco-Bat Technologies Ltd. to positive from negative. At the same time, the long-term corporate credit rating was affirmed at 'B+'. The 'B+' senior unsecured debt rating on the EUR235 million 10.125% bonds due 2013 issued by subsidiary Eco-Bat Finance PLC and guaranteed by Eco-Bat was also affirmed. The recovery rating on the notes is unchanged at '3', indicating our expectation of meaningful (50%-70%) recovery in the event of a payment default. "The outlook revision reflects Eco-Bat's healthy financial performance and stronger credit ratios during 2007 and the first quarter of 2008," said Standard & Poor's credit analyst Alex Herbert. "Strong profitability, moderate capital expenditures, and positive free operating cash flows have improved leverage to a level that exceeds our expectations for the rating." Furthermore, the possibility of further shareholder- friendly actions appears to have eased, although this remains a key event risk. However, lead prices have fallen rapidly in recent months, which S&P expects to lower Eco-Bat's profits during the second half of the year. "There is a possibility of a one-notch upgrade within the next 12 months if Eco-Bat continues to generate positive free operating cash flows while at the same time maintaining a moderate capital structure," Mr. Herbert added The ratings could be raised if the ratio of FFO to adjusted debt remains above 20% on a sustainable basis. Distributions to shareholders are not factored in. An outlook revision to stable could be considered if the FFO-to- adjusted debt ratio reduces to below 20% on an ongoing basis, for example if lower lead prices reduce FFO while adjusted debt continues to increase. A renewed more aggressive financial policy could also act as a negative trigger, in the form of dividend payments, a change to cash pay on the existing EUR600 million PIK loan, or additional bond or PIK issuance. GLOBAL TRADER: Joint Liquidators Take Over Operations ----------------------------------------------------- Stephen Robert Cork and Joanne Elizabeth Milner of Smith & Williamson and Joanne Elizabeth Milner of Grant Thornton were appointed joint liquidators of Global Trader Europe Ltd. on June 17 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Smith & Williamson 25 Moorgate London EC2R 6AY England INTERNATIONAL FURNITURE: Taps Liquidators from Tenon Recovery ------------------------------------------------------------- Stanley Donald Burkett-Coltman and Ian Malcolm Donald Graham Cadlock of Tenon Recovery were appointed joint liquidators of International Furniture Exporters Ltd. on June 12 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England LINKALPHA LTD: Calls In Liquidators from Tenon Recovery ------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint liquidators of Linkalpha Ltd. (formerly Boldgate Ltd.) on June 10 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Sherlock House 73 Baker Street London W1U 6RD England MK AIRLINES: Resumes Flight After Administrators Secure Funding --------------------------------------------------------------- MK Airlines Limited has resumed flight operations after joint administrators Andrew Duncan and Michael Oldham of BKL Business Recovery LLP secured an initial funding arrangement with Transatlantic Aviation Ltd., Air Cargo News reports. According to Mr. Duncan, Air Cargo News relates, TAA would work on Company Voluntary Arrangement with MK Airlines' creditors. Once the CVAs are signed, TAA would make further long-term investment into the company with an aim to acquire MK Airlines. "We are delighted to be airborne once again," MK Airlines CEO Mike Kruge said. "Within the next weeks and months we hope to return to a level of trading that existed prior to the appointment of our administrators." MK Airlines appointed administrators from BKL after failing to secure funds to continue operations. MK Airlines said it has been suffering from a difficult economic environment and high fuel prices. The company had planned to acquire fuel- efficient airplanes but was unable to due to lack of funds. MK Airlines had temporarily suspended services but kept its Civil Aviation Authority Airport Operator Certificate, Kents News adds. All other operations remained. Headquartered in East Sussex, United Kingdom, MK Airlines Ltd. -- http://www.mkairlines.com/-- is dedicated cargo airline with niche routes into Europe from Africa, China, India and South America. S E CLEANING: Appoints Liquidator from Mazars --------------------------------------------- Timothy Colin Hamilton Ball of Mazars LLP were appointed joint liquidators of S E Cleaning Services Ltd. on June 5 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Mazars LLP Clifton Down House Beaufort Buildings Clifton Bristol BS8 4AN England SWITCH WIZARD: Hires Liquidators from Tenon Recovery ---------------------------------------------------- Alexander Kinninmonth and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of Switch Wizard plc (formerly Direct Results Ltd.) on June 13 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England THOMAS JAMES: Brings In Liquidators from Mazars ----------------------------------------------- Simon David Chandler and Alistair Steven Wood of Mazars LLP were appointed joint liquidators of Thomas James Estates (Nottingham) Ltd. on June 12 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Mazars LLP Cartwright House Tottle Road Nottingham NG2 1RT England TRANSPARENT PROPERTY: Appoints Liquidators from Tenon Recovery -------------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of Transparent Property Management Ltd. on June 10 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England * Bad Debt Is a Contributor to UK SME Insolvencies, Study Says -------------------------------------------------------------- Bad debt and the inability to manage finances are major contributors to company insolvencies, according to research released by independent financier Venture Finance. In a survey of accountants, 69 per cent said they believe SME insolvencies are the result of a business' inability to manage its finances and 17 per cent blame thousands of SME insolvencies on the issue of bad debt. Venture releases these figures as the latest insolvency statistics from the Department of Trade and Industry are made public today. According to the insolvency service report, there were 3,194 company liquidations in the last quarter of 2006 illustrating that bad debt remains a financial challenge for SMEs. To date, employment levels have remained high and interest rates low. However, with rates already on the rise in January and forecast to rise further during 2007, SMEs may find they are operating in a very different climate. Measures can be taken to ensure companies not only maintain a strong cash flow, but are also protected against late payment or non-payment. Steve Websdale, director of Venture Finance comments: "Accountants are a voice of authority in the business world and companies should heed their advice � this is no time to be complacent. In lights of the latest DTI insolvency statistics, companies need to make their financial resolutions for 2007 and get their finances in order." "It is well known that between one third and a half of all new businesses fail within the first three years of trading. This indicates that both poor management and bad debt remain significant hurdles to a business's success." A combination of bad debt protection and invoice finance, which unlocks the value of unpaid invoices for instant use, helps ensure that a company can maintain a positive cash flow and deal with problems arising from non-payment. Stanley Coltman, insolvency practitioner with Tenon Recovery Group comments: "Unfortunately, it is a fact that numerous sound businesses find themselves suffering from cash flow difficulties following an unexpected bad debt, a queried invoice or a habitual late payer. It is critical that the cash needs of the business are controlled, a cash forecast produced and control mechanisms installed and monitored regularly. However, this is often overlooked and neglected during the critical first years of the growth of a start up business. "Bad Debt protection does exactly what it says on the tin by protecting a business from late payment or a customer becoming insolvent. It offers peace of mind to the business and ensures it will stay in control of its finances." * S&P's Takes Watch Actions on 28 European CDO of ABS Tranches -------------------------------------------------------------- Standard & Poor's Ratings Services has taken CreditWatch actions on 28 tranches issued by several European CDO of ABS transactions. Specifically, ratings on: -- Two tranches were affirmed; -- Four tranches were lowered; -- Eight tranches were lowered and removed from CreditWatch with negative implications; -- 11 tranches were lowered and kept on CreditWatch negative; and -- Three tranches were removed from CreditWatch negative and affirmed. Most of the affected tranches were originally placed on CreditWatch negative on May 7, 2008, reflecting the deterioration in the credit quality of the underlying portfolio due to the exposure to U.S. CDOs of ABS and residential mortgage-backed securities, and the potential decrease in the break-even default rates as a result of our revision to our recovery assumptions for certain CDOs. These rating actions reflect the negative rating migration in the transaction's portfolios following recent negative rating changes on U.S. CDOs of ABS in the underlying portfolio. This has led to an increase in scenario default rates. These rating actions also reflect the effect on the CDOs following the revisions to our recovery rate assumptions for CDOs. The revision has led to a significant fall in the BDRs when subject to our cash flow analysis. As a result, current credit enhancement cannot support the rise in SDRs at existing ratings levels. Ratings List Class Rating To From Ratings Affirmed Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes A1-A AAA A1-B AAA Ratings Lowered Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes A2-A A+ AAA A2-B A+ AAA B-1 AA- AA B-2 AA- AA Ratings Removed From CreditWatch Negative And Affirmed Palmer Square 2 PLC US$2,012 Million Asset-Backed Floating-Rate Notes X-1 AAA AAA/Watch Neg X-2 AAA AAA/Watch Neg Cairn High Grade ABS CDO I PLC US$1 Billion Floating-Rate Notes A1 AA- AA-/Watch Neg Ratings Lowered And Removed From CreditWatch Negative Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes C-1 BBB- A/Watch Neg C-2 BBB- A/Watch Neg D-1 BB BB+/Watch Neg D-2 BB BB+/Watch Neg Cairn High Grade ABS CDO I PLC US$1 Billion Floating-Rate Notes A2 BBB+ A+/Watch Neg B BBB- A/Watch Neg C BB- BBB+/Watch Neg E CCC-p BB-p/Watch Neg Ratings Lowered and Kept on CreditWatch Negative Palmer Square 2 PLC US$2,012 Million Asset-Backed Floating-Rate Notes A1-M-A A+/Watch Neg AAA/Watch Neg A1-M-B A+/Watch Neg AAA/Watch Neg A1-Q-A A+/Watch Neg AAA/Watch Neg A1-Q-B A+/Watch Neg AAA/Watch Neg A2-A BBB/Watch Neg AA+/Watch Neg A2-B BBB/Watch Neg AA+/Watch Neg A3-A BB/Watch Neg BBB/Watch Neg A3-B BB/Watch Neg BBB/Watch Neg B-1 BB-/Watch Neg BBB-/Watch Neg B-2 BB-/Watch Neg BBB-/Watch Neg C B/Watch Neg BB-/Watch Neg BOOK REVIEW: Learning Leadership -------------------------------- Title: Learning Leadership -- The Abuse of Power in Organizations Author: Abraham Zaleznik Publisher: Beard Books Paperback: 552 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/158798282X/internetbankru pt The lesson in Learning Leadership -- The Abuse of Power in Organizations is to "use power so that substance leads process." This is done, says the author, by keeping the "content of work at the center of communication." The premise of this intriguing book is that many managers, executives, and other business leaders allow "forms of communication [to become] the center of work." As a result, misguided and counterproductive leadership and management practices have settled into many organizations. A culprit is the popular "how-to" leadership manuals that offer simple, superficial principles that only skim the surface of leadership. Zaleznik argues that the primary way to get work done is to put aside personal agendas and deal directly with those who are involved in the work. With this emphasis on substance over process, the concept of leadership lies not in techniques, but personal qualities. The essential personal qualities of leadership are captured by the "three C's" of competence, character, and compassion. The author then delves more deeply into each of these C's. We learn, for example, that the three C's are not learned skills. Competence entails "building one's power base on talent." Character and compassion are the two other qualities of a leader that must be present before there is any talk about methods of operation, lines of communication, definition of goals, structure of a team, and the like. There is more to character that the common definition of the "quality of the person." Character also embraces, says the author, the "code of ethics that prevents the corruption of power." Compassion is defined as a "commitment to use power for the benefit of others, where greed has no place." This concept of a good leader is not idealized or unrealistic. It takes into account human nature and the troubling behavior of many leaders. Of course, any position of leadership brings with it temptations and the potential to abuse power. Effective leaders are those who "take responsibility for [their] own neurotic proclivities," says the author. They do this out of a sense of the true purpose of leadership, which is communal benefit. The power holder will "avoid the treacheries of an unreasonable sense of guilt, while recognizing the omnipresence of unconscious motivation." Mr. Zaleznik's definition of the essentials of leadership comes from his study of notable (and sometime notorious) leaders. Some tales are cautionary. The Fashion Shoe Company illustrates the problems that can occur when a leader allows action to overcome thought. The Brandon Corporation illustrates the opposite leadership failing -- allowing thought to inhibit action. Taken together, the two examples suggest that balance is needed for good leadership. Andrew Carnegie exemplifies the struggle between charisma and guilt that affects some leaders. Frederick Winslow Taylor is seen by the author as an obsessed leader. From his behavior in the Sicilian campaign in World War II, General Patton is characterized as a leader who violated the code binding leaders and those they lead. With his training in psychoanalysis and his experience in the business field, Mr. Zaleznik's leadership dissections and discussions are instructive. The reader will find Learning Leadership -- The Abuse of Power in Organizations to be an engaging text on the human qualities and frailties of leaders. Abraham Zaleznik is emeritus Konosuke Matsushita Professor of Leadership at the Harvard Business School. He is also a certified psychoanalyst. ********* 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. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, and Pius Xerxes Tovilla, Editors. Copyright 2008. 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 * * *