/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080725.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, July 25, 2008, Vol. 9, No. 147 Headlines A U S T R I A ALC-AUTOLACKIERCENTER: Claims Registration Period Ends August 5 HABERL TRANSPORTE: Claims Registration Period Ends August 6 KNG LEASING: Claims Registration Period Ends August 4 LEBENBAUER SPEZIALTROCKENBAU: Claims Registration Ends August 14 QUARKS LLC: Claims Registration Period Ends August 11 XERIUM TECH: Names CEO Stephen R. Light as Chairman of the Board B U L G A R I A * Moody's Says Bulgarian Banking System is Stable F R A N C E BALLY TECHNOLOGIES: S&P Raises Rating to BB; Off CreditWatch SPCM SA: S&P Puts BB Rating on US$315 Million Sr. Debt Issue G E R M A N Y ACHENBACH GMBH: Claims Registration Period Ends August 1 ARENA TRANS: Claims Registration Period Ends August 4 ASS WELLNESS: Claims Registration Period Ends August 4 ATEX AUTOMOTIVE: Claims Registration Period Ends August 20 BRILLENSCHMIEDE GMBH: Claims Registration Period Ends August 1 CREATIV CONCEPT: Claims Registration Period Ends July 30 DTE GMBH: Claims Registration Period Ends August 4 ENWA CONSULT: Claims Registration Period Ends August 4 FRITZ DINING: Claims Registration Period Ends August 4 HAGRO AUTOMOBILE: Claims Registration Period Ends August 4 HIGHSENSE GMBH: Claims Registration Period Ends August 1 HYBRID GMBH: Claims Registration Period Ends August 4 KNABE-DER REINIGUNGSPROFI: Claims Registration Ends August 1 METALLBAU PILZ: Claims Registration Period Ends August 1 MULTIMATIC STEUERUNGSBAU: Claims Registration Period Ends Aug. 1 OMEGA INTERNATIONAL: Claims Registration Period Ends August 4 PARKETT-TRAUTWEIN GMBH: Claims Registration Period Ends Aug. 4 STADTPARK HOTEL: Claims Registration Period Ends August 1 TMG REISETEAM: Claims Registration Period Ends August 1 UMI GMBH: Claims Registration Period Ends August 1 I T A L Y ARES FINANCE: Fitch Affirms 'B+' Rating on EUR15MM Class F Notes K A Z A K H S T A N AGRARNO STROITELNO: Creditors Must File Claims by September 4 AISBERG-LES LLP: Claims Deadline Slated for September 9 AISK ALMATY: Claims Filing Period Ends September 4 BTA Bank: Repays Second Part of US$63 Million Islamic Loan INCOMTYRE JSC: Creditors' Claims Due on September 9 KAZ INTER: Claims Registration Ends September 9 OTANDASTAR KAPCHAGAI: Creditors Must File Claims by September 4 SK & F OJSC: Claims Deadline Slated for September 9 K Y R G Y Z S T A N PLAST CITY: Creditors Must File Proofs Claim by September 2 L U X E M B O U R G EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass MILLICOM INT'L: Acquires Amnet Telecoms for US$510 Million MILLICOM INT'L: S&P's Outlook Unchanged on Amnet Acquisition N E T H E R L A N D S ICTS INTERNATIONAL Mahoney Cohen Expresses Going Concern Doubt NXP B.V.: Moody's Lowers Corporate Family Rating to B2 from B1 R U S S I A AOEIE IRKUTSKENERGO: Unit's Restructuring Cues S&P's Neg. Watch BALTIC DAIRI: Creditors Must File Claims by August 28 DINAMO LLC: Creditors Must File Claims by August 21 EAST LLC: Bashkortostan Bankruptcy Hearing Slated for October 20 EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass FINDER CJSC: Creditors Must File Claims by August 21 LEADER LLC: St. Petersburg Bankruptcy Hearing Set August 25 MEGA-STROY-PROM: Creditors Must File Claims by August 21 METAL-SERVICE LLC: Creditors Must File Claims by August 21 MOBILE TELESYSTEMS: Faces US$50 Million Back-Tax Claim NIKOLAEVSKAYA FISHING: Creditors Must File Claims by July 28 NIVA CRYSTAL: Creditors Must File Claims by August 21 NOVOBEZGINSKOE CJSC: Creditors Must File Claims by August 21 OGK-5 OAO: Inks Deal for Cycle Gas Turbine Plant Construction OIL-BITUMEN OJSC: Creditors Must File Claims by July 28 OPIN JSC: Fitch Assigns 'B' Long-Term and Short-Term ID Ratings STILE LLC: Court Starts Bankruptcy Supervision Procedure VIMPEL-COMMUNICATIONS: OJSC Faces US$54 Million Back Tax Claim VOLGA-SPIRIT LLC: Creditors Must File Claims by August 21 WEST LLC: Creditors Must File Claims by August 21 YARSKOE CJSC: Creditors Must File Claims by August 21 S P A I N AYT COLATERALES: Fitch Assign BB- Rating on EUR6MM Class D Notes AYT GOYA: Fitch Rates EUR3.25 Million Class D Notes at BB SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses SAS AB: Spanair Sells Club Vacaciones Tour Unit S W E D E N SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses SAS AB: Spanair Sells Club Vacaciones Tour Unit S W I T Z E R L A N D DIVE ADVENTURE: Creditors Must File Proofs of Claim by Sept. 13 DUFT KLINIK: Creditors Have Until August 14 to File Claims FASSAG JSC: Court Commences Bankruptcy Proceedings FITMACHER LLC: Sets Aug. 15 Deadline for Filing Proofs of Claim GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy HARE LLC: Deadline to File Proofs of Claim Set August 7 HB-TECH FUR PROJEKTIERUNG: Creditors' Claim Due by August 7 INSPIRING SYSTEM: Creditors Have Until Sept. 20 to File Claims IMMOPACK LLC: Deadline to File Proofs of Claim Set August 21 MARKUS WILLI: Creditors Must File Proofs of Claim by Aug. 29 MIV-IMMOBILIEN LLC: Claims Filing Deadline Set August 7 RH HUMANITAS: Sept. 30 Set as Deadline to File Proofs of Claim U K R A I N E CENTER MEGANOM: Creditors Must File Claims by August 8 ETALON-LIS: Proofs of Claim Filing Deadline Set August 9 EXPERIMENTAL WINERY: Proofs of Claim Filing Deadline Set Aug. 9 EXPRESSBUILDING BF: Creditors Must File Claims by August 8 INDUSTRIAL ASSEMBLY: Proofs of Claim Filing Deadline Set Aug. 9 MILKA LLC: Proofs of Claim Filing Deadline Set August 9 MINE BUILDING: Creditors Must File Claims by August 9 PAVLOGRAD MILK: Creditors Must File Claims by August 8 TISA-95 LLC: Creditors Must File Claims by August 8 UKRAINIAN MTN: Fitch Rates US$2BB LPN Program for Notes 'BB-' VSEUKRAINSKY AKTSIONERNY: Fitch Holds 'B-' Issuer Default Rating U N I T E D K I N G D O M C REALISATIONS: Calls In Liquidators from PricewaterhouseCoopers DALECLASS LTD: Bank of Scotland Taps Receivers from Kroll FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy HORNERS MOTOR: Bank of Scotland Taps Receivers from BDO Stoy INTERPUBLIC GROUP: Secures US$335 Mln Revolving Credit Facility INTERPUBLIC GROUP: Fitch Rates US$335 Mln Credit Facility at BB+ MG ROVER: Creditors May Receive Final Payouts in 2010 MOBILE MATTERS: Manchester Court Orders Winding Up Proceedings NEWARK GROUP: Brings In Liquidators from Ernst & Young NORTHERN ROCK: Names Gary Hoffman as CEO Effective October 1 PROFESSIONAL RECRUITMENT: Court Orders Closure of Business SIMSHU 2: Claims Filing Period Ends August 20 SPICE INNS: Brings In Joint Administrators from BDO Stoy Hayward TALISMAN-6 FINANCE: Fitch Junks Rating on EUR15.48MM Notes TRUSTGUARD CREDIT: Credit Crunch Spurs Administration * Fitch Holds Low-B Support Floor Ratings on Bldg. Societies * Fitch: Some UK Homebuilders Face Default Risk in 12 Months * Fitch: UK Credit Cards ABS Deal Delay Won't Affect Ratings * Fitch Says Negative Rating Trend in Global Banks Persists * Fitch Says EC's Proposed Restrictions Need More Definition * Ernst & Young ITEM Expects UK Economy Inflation to Remain High * Credit Crunch Hits UK Companies Harder, a KPMG Survey Says * BOOK REVIEW: Corporate Players: Designs for Working ********* ============= A U S T R I A ============= ALC-AUTOLACKIERCENTER: Claims Registration Period Ends August 5 --------------------------------------------------------------- Creditors owed money by LLC ALC-Autolackiercenter have until Aug. 5, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr.iur. M.B.L. Guenther Grassner Suedtirolerstrasse 4-6 4020 Linz Austria Tel: +43 7077 0815 Fax: +43 7077 0816 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Aug. 19, 2008, for the examination of claims at: The Land Court of Linz Room 522 5th Floor Linz Austria Headquartered in Ansfelden, Austria, the Debtor declared bankruptcy on June 20, 2008, (Bankr. Case No. 17 S 26/08k). HABERL TRANSPORTE: Claims Registration Period Ends August 6 ----------------------------------------------------------- Creditors owed money by LLC Haberl Transporte have until Aug. 6, 2008, to file written proofs of claim to the court- appointed estate administrator: Thomas Boechzelt Krottendorfer Gasse 4 8700 Leoben Austria Tel: 03842-48117 Fax: 03842-48117-11 E-mail: office@ra-ahb.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Aug. 20, 2008, for the examination of claims at: The Land Court of Leoben Hall IV 1st Floor Leoben Austria KNG LEASING: Claims Registration Period Ends August 4 ----------------------------------------------------- Creditors owed money by LLC KNG Leasing have until Aug. 4, 2008, to file written proofs of claim to the court-appointed estate administrator: Thomas Steiner Weihburggasse 18-20/50 1010 Vienna Tel: 513 5363 Fax: 513 5363-17 E-mail: steiner.steiner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Aug. 18, 2008, for the examination of claims at: The Trade Court of Vienna Room 1705 Vienna Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 20, 2008, (Bankr. Case No. 3 S 67/08k). LEBENBAUER SPEZIALTROCKENBAU: Claims Registration Ends August 14 ---------------------------------------------------------------- Creditors owed money by KG Lebenbauer Spezialtrockenbau have until Aug. 14, 2008, to file written proofs of claim to the court-appointed estate administrator: Michael Schnalzer Bismarkstr. 5 8280 Fuerstenfeld Austria Tel: 03382/52610 Fax: 03382/52331-16 E-mail: kbs@recht-so.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Aug. 21, 2008, for the examination of claims at: The Land Court of Graz Room 222 2nd Floor Graz Austria Headquartered in Fuerstenfeld, Austria, the Debtor declared bankruptcy on June 20, 2008, (Bankr. Case No. 26 S 71/08y). QUARKS LLC: Claims Registration Period Ends August 11 ----------------------------------------------------- Creditors owed money by LLC Quarks have until Aug. 11, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Erhard Hackl Hofgasse 7 4020 Linz Austria Tel: 0732/776234, 776235 Fax: 0732/776234 22 E-mail: hackl.hatak@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 25, 2008, for the examination of claims at: The Land Court of Linz Room 522 5th Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on June 18, 2008, (Bankr. Case No. 12 S 51/08z). XERIUM TECH: Names CEO Stephen R. Light as Chairman of the Board ---------------------------------------------------------------- Xerium Technologies Inc.'s board of directors has appointed Stephen R. Light, Xerium's president and chief executive officer, as its chairman of the board of directors. The board also has appointed Michael Phillips, who has served as a director since December 1999, to the new position of vice chairman of the board. John S. Thompson, who stepped down after serving as board chairman since July 2004, will continue to serve as a director. "The entire board and I are very grateful to [Mr. Thompson] for his stewardship during times of momentous change and progress, including the IPO, a major debt refinancing, and a smooth transitioning to new leadership," Mr. Light commented. "We look forward to continuing to benefit from [[Mr. Thompson's] wisdom and experience as an active member of our board. All of us at Xerium are fully committed to moving forward with our recently announced strategic repositioning, which calls for us to improve this company's financial strength and operational efficiency to the benefit of our numerous stakeholders, which includes all of our employees, suppliers, customers, and shareholders." Mr. Light joined Xerium as president and CEO, well as a director, in February 2008. Prior to joining Xerium, he completed the turnaround of Flow International Corp., a producer of industrial waterjet cutting and cleaning equipment. Mr. Light also served as president and CEO of OmniQuip Textron, and held senior level management positions at General Electric, Emerson Electric and N.V. Phillips. Mr. Phillips is a partner with private equity firm Apax Partners Beteiligungsberatung GmbH, which is an affiliate of Apax Europe IV GP Co. Ltd., the beneficial owner of approximately 54.3% of the outstanding shares of common stock of Xerium Technologies. Mr. Phillips joined Apax Partners in 1992, he is a member of the Executive Committee and Apax Approval, Investment and Exit Committees and he leads the Munich office. Mr. Thompson has served as a director and chairman of the board since July 2004. He served as chief executive officer of SPS Technologies Inc., a manufacturer of specialty fasteners, assemblies, precision components, metalworking, magnetic products and superalloys listed on the New York Stock Exchange, from April 2002 to December 2003, when he retired. He also served as its president and chief operating officer from October 1999 to March 2002, and as a director from April 2000 to December 2003. About Xerium Technologies Based on Youngsville, North Carolina, Xerium Technologies Inc. (NYSE: XRM) -- http://www.xerium.com/-- manufactures and supplies consumable products used in the production of paper: clothing and roll covers. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * As disclosed in the Troubled Company Reporter on June 9, 2008, Moody's Investors Service revised Xerium Technologies, Inc.'s outlook to positive from negative, upgraded its speculative grade liquidity rating to SGL-3 from SGL-4, and upgraded its probability of default rating to Caa1 from Caa2. As related in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services affirmed its ratings on Xerium Technologies Inc., including the 'CCC+' corporate credit rating, and removed them from CreditWatch, where they were originally placed with negative implications on March 19, 2008. At the same time, S&P assigned a positive outlook. =============== B U L G A R I A =============== * Moody's Says Bulgarian Banking System is Stable ------------------------------------------------- The fundamental credit outlook for the Bulgarian banking system remains stable, although there are concerns over future asset quality as a result of past rapid credit growth and increasingly challenging funding conditions, which are likely to pressure interest rate margins further, says Moody's Investors Service in its new Banking System Outlook for Bulgaria. Most of the banks display generally good domestic franchises, solid profitability levels underpinned by elevated business volumes and healthy, although tightening, interest margins and comfortable capital levels. Moody's stable outlook for the Bulgarian banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades. In addition to the 'Banking System Outlook', which focuses on performance measures and forward-looking rating drivers for the Bulgarian banking system, Moody's has also published a 'Banking System Profile' report for Bulgaria. The Profile forms part of a new series of reports on banking systems throughout the world, which are designed to complement Moody's Banking System Outlook reports by serving as descriptive reference guides to key structural factors that are reflected in Moody's bank credit ratings. "Bulgaria's improving regulatory and supervisory environment and the positive economic cycle are supportive for the franchise development of the country's banks. However, the banks increasingly face challenging funding conditions due to both intense competition domestically and the rising uncertainty in the global financial markets, which has had an adverse impact on their foreign parents' financial standing and ability to continue channeling funds to their Bulgarian subsidiaries at very low costs," explains Elena Panayiotou, a Moody's Analyst and author of the reports. Although credit demand is likely to remain at strong levels and continue to support banks' franchise growth, Moody's cautions that the rapid credit expansion could result in a high level of non-performing loans in the system in an economic downturn and that rising consumer indebtedness raises concerns about the future performance of these borrowers, particularly in the context of a relatively unseasoned credit portfolio. "The Bulgarian banking system is highly fragmented, with the majority of the system's assets being concentrated in the hands of large Western European institutions with a strong presence in South Eastern Europe. Competition in the market is fierce, with all banks aiming to build market shares not only in the corporate segment but also in the high-yielding retail segment through their fast-expanding distribution networks," says Ms. Panayiotou. The active involvement of foreign banks in the Bulgarian banking system has resulted in greater expertise, improved risk management processes, better quality of service and greater product innovation. However, there remains room for further improvement in corporate governance practices and transparency, in Moody's opinion. Bulgarian banks are likely to continue to generate good returns on their high business volumes and maintain adequate comfortable capital positions. Moody's views Bulgaria as a low-support country. Despite the increasing importance of the banking sector to the payment system, the currency board that has been in place since 1997 limits the ability of the central bank to provide direct support to a financial institution in case of distress. Bulgaria has a deposit insurance guarantee scheme, which provides coverage to private sector customer deposits. The regulatory and supervisory framework is still evolving but, in Moody's view, is currently of good quality with prudent measures in place and good level of formalization of procedures and rules. Further improvements in transparency would raise further the confidence in the country's financial and banking system. Moody's regards positively the continuous steps taken by the central bank to enhance its supervisory techniques and oversight, and its openness in adapting to EU regulations and standards. =========== F R A N C E =========== BALLY TECHNOLOGIES: S&P Raises Rating to BB; Off CreditWatch ------------------------------------------------------------ Standard & Poor's Ratings Services has raised its ratings on Las Vegas, Nev.-based Bally Technologies Inc.; the corporate credit rating was raised to 'BB' from 'B+'. The ratings were removed from CreditWatch, where they were placed with positive implications Nov. 5, 2007. The rating outlook is stable. At the same time, we raised the issue-level rating on Bally's senior secured credit facilities to 'BB+' (one notch higher than the 'BB' corporate credit rating) and assigned a recovery rating of '2' to the loans, indicating that lenders can expect substantial (70% to 90%) recovery in the event of a payment default. "The rating upgrade is based on continuing robust operating performance demonstrated over the past several quarters, coupled with a significant improvement in credit metrics, which we believe is sustainable," explained Standard & Poor's credit analyst Melissa Long. "We expect Bally to continue to post relatively good operating results over the intermediate term, although that growth will moderate somewhat in the coming quarters, given economic weakness, which is affecting the U.S. gaming industry." The rating on Bally reflects the company's exposure to product sales volatility, the existence of a much larger and well- established competitor (International Game Technology), and the expectation for a moderation in the operating environment during the next few quarters as a result of slower replacement sales and economic weakness. These factors are tempered by the company's No. 2 position in the North American gaming equipment market, its expanding base of gaming devices and systems, and strong credit measures for the rating, which we expect provide ample cushion in a slowdown. For the nine months ended March 31, 2008, Bally reported EBITDA of US$188.2 million, up about 142% year over year. The EBITDA improvements, along with modest debt repayment, have resulted in total debt to EBITDA (adjusted for operating leases) and EBITDA coverage of interest for the 12 months ended March 31, 2008, improving to 1.2x and 8.9x, respectively. This compares with 3.3x and 3.2x, respectively, for the previous 12-month period. The credit measures are currently strong for the rating and afford some flexibility for share repurchases, acquisitions, or a weakening operating environment. Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Mississippi. The company's South American operations are located in Argentina. The company also has operations in France, Germany, Macau, China, India, and the United Kingdom. SPCM SA: S&P Puts BB Rating on US$315 Million Sr. Debt Issue ------------------------------------------------------------ Standard & Poor's Ratings Services has assigned an issue-level rating of 'BB' to the US$315 million senior secured debt issues of French chemicals group SPCM S.A. (BB-/Stable/--), one notch above the 'BB-' corporate credit rating on the company. At the same time, S&P assigned a recovery rating of '2' to this debt, indicating its expectation of substantial (70%-90%) recovery for secured creditors in the event of a payment default. S&P has also withdrawn the 'BB' issue and '2' recovery ratings on the group's former EUR150 million secured facilities following refinancing. The issue rating on the EUR210 million senior unsecured notes due 2013 remains at 'BB-', in line with the corporate credit rating, with a recovery rating of '3', indicating S&P's expectation of meaningful (50%-70%) recovery for unsecured creditors in the event of a payment default. The long-term corporate credit rating on SPCM reflects the group's somewhat weak cash flow metrics and thin free operating cash flow, limited product diversification, and industry competition. Partially offsetting these negative factors are main unit SNF's world market leadership in specialty and intermediate water treatment polymers, adequate liquidity, and growth prospects. ============= G E R M A N Y ============= ACHENBACH GMBH: Claims Registration Period Ends August 1 -------------------------------------------------------- Creditors of Achenbach GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Heidrich. The District Court of Hof will verify the claims set out in the insolvency manager's report at 1:00 p.m. on Aug. 27, 2008, at: The District Court of Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Heidrich Grillparzer Str. 16 c/o Rechtsanwalte Dr. Pannen 81675 Munich Germany Tel: 089/41619340 Fax: 089/4161934180 The District Court of Hof opened bankruptcy proceedings against Achenbach GmbH on May 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Achenbach GmbH Reinersreuther Str. 10 95239 Zell Germany Attn: Hans-Joachim Achenbach, Manager Winholzstr. 11 95239 Zell Germany ARENA TRANS: Claims Registration Period Ends August 4 ----------------------------------------------------- Creditors of Arena Trans GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Dr. Michael Jaffe. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 10, 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Michael Jaffe Franz-Joseph-Str. 8 80801 Munich Germany Tel: 089/255487-00 Fax: 255487-10 The District Court of Munich opened bankruptcy proceedings against Arena Trans GmbH on June 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Arena Trans GmbH Attn: Halil Koesem, Manager Lerchenauerstr. 7 80809 Munich Germany ASS WELLNESS: Claims Registration Period Ends August 4 ------------------------------------------------------ Creditors of ASS Wellness GmbH, Sport & Fitness have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Karl-Heinz Trebing. 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 Hanau Room 111 Engelhardstrasse 21 63450 Hanau Germany The Court will also verify the claims set out in the insolvency manager's report at 10:10 a.m. on the same date at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karl-Heinz Trebing Hanauer Landstr. 287-289 60314 Frankfurt/M Germany Tel: 069/15051530 Fax: 069/15051400 The District Court of Hanau opened bankruptcy proceedings against ASS Wellness GmbH, Sport & Fitness on May 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ASS Wellness GmbH, Sport & Fitness Lise Meitner Str. 20 63457 Hanau Germany Attn: Uwe Schwarzkopf and Antonio Garcia, Managers Friedhofstr. 40 63796 Kahl Germany ATEX AUTOMOTIVE: Claims Registration Period Ends August 20 ---------------------------------------------------------- Creditors of ATEX AUTOMOTIVE GmbH & Co. KG have until Aug. 20, 2008, to register their claims with court-appointed insolvency manager Albert Hirt. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Sept. 17, 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 Rottweil Room 0.05 Branch Office Koernerstr. 29 78628 Rottweil 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: Albert Hirt Berner Feld 74 78628 Rottweil Germany Tel: 0741-1754050 Fax: 0741-1754020 The District Court of Rottweil opened bankruptcy proceedings against ATEX AUTOMOTIVE GmbH & Co. KG on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ATEX AUTOMOTIVE GmbH & Co. KG Attn: Knut Leube, Manager Heerstr. 85 78628 Rottweil Germany BRILLENSCHMIEDE GMBH: Claims Registration Period Ends August 1 -------------------------------------------------------------- Creditors of Brillenschmiede GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Uwe Bendig. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Aug. 15, 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 Niebuell Hall 1 Sylter Bogen 1 A 25899 Niebuell 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: Uwe Bendig Dockenhudener Strasse 20 22587 Hamburg Germany The District Court of Niebuell opened bankruptcy proceedings against Brillenschmiede GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Brillenschmiede GmbH Attn: Frau Silke Jepsen-Quednau, Manager Schafmarkt 2 25917 Leck Germany CREATIV CONCEPT: Claims Registration Period Ends July 30 -------------------------------------------------------- Creditors of Creativ Concept Bau GmbH have until July 30, 2008, to register their claims with court-appointed insolvency manager Natascha Habura. Creditors and other interested parties are encouraged to attend the meeting at noon on Aug. 20, 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 Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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: Natascha Habura Eichendorffstrasse 25 47800 Krefeld Germany Tel: 0215180580 Fax: 02151805858 The District Court of Kleve opened bankruptcy proceedings against Creativ Concept Bau GmbH on July 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Creativ Concept Bau GmbH Empeler Strasse 122 46459 Rees Germany DTE GMBH: Claims Registration Period Ends August 4 -------------------------------------------------- Creditors of DTE GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Ulrich Luppe. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Sept. 1, 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Luppe Hansering 9/10 06108 Halle Germany Tel: 0345/614070 Fax: 0345/6140710 The District Court of Halle-Saalkreis opened bankruptcy proceedings against DTE GmbH on June 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DTE GmbH Attn: Dr. Heiko Tauchnitz, Manager Fritz-Haber-Str. 9 06217 Merseburg Germany ENWA CONSULT: Claims Registration Period Ends August 4 ------------------------------------------------------ Creditors of ENWA Consult Ingenieurgesellschaft mbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Petra Fuchs. Creditors and other interested parties are encouraged to attend the meeting at 11:50 a.m. on Aug. 21, 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 Hanau Area E03 Engelhardstrasse 21 63450 Hanau 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: Petra Fuchs Schafergasse 17 D 60313 Frankfurt Germany Tel: 069 / 138107-0 Fax: 069 / 138107-10 The District Court of Hanau opened bankruptcy proceedings against ENWA Consult Ingenieurgesellschaft mbH on June 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ENWA Consult Ingenieurgesellschaft mbH Kilianstadter Str. 36 61137 Schoeneck-Buedesheim Germany Attn: Volker Schafer, Manager Tannenweg 19 78713 Schramberg Germany FRITZ DINING: Claims Registration Period Ends August 4 ------------------------------------------------------ Creditors of Fritz Dining Verwaltungsgesellschaft mbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Manuel Sack. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on Sept. 10, 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Manuel Sack Schiffgraben 30 30175 Hannover Germany Tel: 0511 36602-0 Fax: 0511 36602-55 The District Court of Hannover opened bankruptcy proceedings against Fritz Dining Verwaltungsgesellschaft mbH on June 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fritz Dining Verwaltungsgesellschaft mbH Podbielskistr. 44 30177 Hannover Germany Attn: Dr. Olaf Buechler, Manager Herrengraben 3 20459 Hamburg Germany HAGRO AUTOMOBILE: Claims Registration Period Ends August 4 ---------------------------------------------------------- Creditors of Hagro automobile GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Herbert Feigl. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 1, 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Herbert Feigl Hansering 1 D 06108 Halle Germany Tel: 0345/212220 Fax: 0345/2122222 The District Court of Halle-Saalkreis opened bankruptcy proceedings against Hagro automobile GmbH on June 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hagro automobile GmbH C/o Autohaus Hora GmbH Attn: Hartmut Gross, Liquidator Weissenfelser Strasse 06667 Langendorf Germany HIGHSENSE GMBH: Claims Registration Period Ends August 1 -------------------------------------------------------- Creditors of HighSense GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Oliver Schartl. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 8, 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Oliver Schartl Schwanthalerstr. 32 80336 Munich Germany Tel: 089-545110 Fax: 089-54511-444 The District Court of Munich opened bankruptcy proceedings against HighSense GmbH on June 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HighSense GmbH Leopoldstr. 250 80807 Munich Germany HYBRID GMBH: Claims Registration Period Ends August 4 ----------------------------------------------------- Creditors of HYBRID GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Sven Bader. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 21, 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 Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal 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: Sven Bader Carl-Grueber-Weg 14 42853 Remscheid Germany Tel: 02191/421010 Fax: 02191/421070 The District Court of Wuppertal opened bankruptcy proceedings against HYBRID GmbH on June 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HYBRID GmbH Attn: Oezden Yilmaz, Manager Berghauser Str. 62 42859 Remscheid Germany KNABE-DER REINIGUNGSPROFI: Claims Registration Ends August 1 ------------------------------------------------------------ Creditors of Knabe-Der Reinigungsprofi GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Christian Hellmich. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Sept. 10, 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 Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Str. 28 Ludwigsburg 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: Christian Hellmich Koenigstr. 20 70173 Stuttgart Germany Tel. (0711) 223320 Fax. (0711) 22332-516 The District Court of Ludwigsburg opened bankruptcy proceedings against Knabe-Der Reinigungsprofi GmbH on July 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Knabe-Der Reinigungsprofi GmbH Marktstr. 34 71522 Backnang Germany METALLBAU PILZ: Claims Registration Period Ends August 1 -------------------------------------------------------- Creditors of Metallbau Pilz GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Joachim Klein II. Creditors and other interested parties are encouraged to attend the meeting at 11:07 a.m. on Aug. 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 Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Klein II Hansaring 79-81 50670 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Metallbau Pilz GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Metallbau Pilz GmbH Girlitzweg 28 50829 Cologne Germany MULTIMATIC STEUERUNGSBAU: Claims Registration Period Ends Aug. 1 ---------------------------------------------------------------- Creditors of Multimatic Steuerungsbau GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Klaus Knetter. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Aug. 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 Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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: Klaus Knetter Otto-Brenner-Str. 186 33604 Bielefeld Germany The District Court of Bielefeld opened bankruptcy proceedings against Multimatic Steuerungsbau GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Multimatic Steuerungsbau GmbH Fabrikstr. 24 33659 Bielefeld Germany OMEGA INTERNATIONAL: Claims Registration Period Ends August 4 ------------------------------------------------------------- Creditors of Omega International Verwaltungsservice GmbH have until Aug. 4, 2008, to register their claims with court- appointed insolvency manager Alfred Ponzer. Creditors and other interested parties are encouraged to attend the meeting at 8:50 a.m. on Aug. 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 Wolfratshausen Meeting Room 3/I Station Route 18 Wolfratshausen 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: Alfred Ponzer Marktplatz 18 83607 Holzkirchen Germany Tel: 08024/30580 Fax: 08024/305820 The District Court of Wolfratshausen opened bankruptcy proceedings against Omega International Verwaltungsservice GmbH on June 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Omega International Verwaltungsservice GmbH Schmied-Kochel-Weg 12 83700 Rottach-Egern Germany PARKETT-TRAUTWEIN GMBH: Claims Registration Period Ends Aug. 4 -------------------------------------------------------------- Creditors of Parkett-Trautwein GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Kaufmann Joachim Schmitz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 3, 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 Braunschweig E 01 Martinikirche 8 38100 Braunschweig 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: Kaufmann Joachim Schmitz Immengarten 2 D 38104 Braunschweig Germany Tel: (0531) 23 64 60 Fax: (0531) 23 64 69 9 The District Court of Braunschweig opened bankruptcy proceedings against Parkett-Trautwein GmbH on June 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Parkett-Trautwein GmbH Attn: Manfred Dube, Manager Engelsstrasse 24 38126 Braunschweig Germany STADTPARK HOTEL: Claims Registration Period Ends August 1 --------------------------------------------------------- Creditors of Stadtpark Hotel GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Dr. Hans-Joerg Laudenbach. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 1, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: District Court of Fritzlar Room 17 Building A Schladenweg 1 34560 Fritzlar 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. Hans-Joerg Laudenbach Carlo-Mierendorff-Str. 15 35398 Giessen Germany Tel: 0641/98292-15 Fax: 0641/98292-16 The District Court of Fritzlar opened bankruptcy proceedings against Stadtpark Hotel GmbH on May 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Stadtpark Hotel GmbH Europaplatz 3 34582 Borken Germany TMG REISETEAM: Claims Registration Period Ends August 1 ------------------------------------------------------- Creditors of TMG Reiseteam GmbH have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Dr. Marc d'Avoine. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Sept. 2, 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal 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. Marc d`Avoine Doeppersberg 19 42103 Wuppertal Germany Tel: 0202-245070 Fax: 0202-2450777 The District Court of Wuppertal opened bankruptcy proceedings against TMG Reiseteam GmbH on June 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TMG Reiseteam GmbH Steinbeck 54 42119 Wuppertal Germany UMI GMBH: Claims Registration Period Ends August 1 -------------------------------------------------- Creditors of UMI GmbH i.L. have until Aug. 1, 2008, to register their claims with court-appointed insolvency manager Eberhard Stock. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Aug. 8, 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 Krefeld Meeting Hall H 131 First Floor Nordwall 131 47798 Krefeld 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: Eberhard Stock Wilhelmshofallee 75 47800 Krefeld Germany Tel: (02151) 5813-0 Fax: +4921515813134 The District Court of Krefeld opened bankruptcy proceedings against UMI GmbH i.L. on May 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: UMI GmbH i.L. Untergath 49 47805 Krefeld Germany ========= I T A L Y ========= ARES FINANCE: Fitch Affirms 'B+' Rating on EUR15MM Class F Notes ---------------------------------------------------------------- Fitch Ratings has upgraded Ares Finance S.r.l.'s Class D floating-rate notes due March 2011 and revised the Outlook for the Class F notes, as: -- EUR49 million Class C (XS0134905032): affirmed at 'AAA'; Outlook Stable -- EUR45 million Class D (XS0134905206): upgraded to 'AAA' from 'A+'; Outlook Stable -- EUR30 million Class E (XS0134905388): affirmed at 'BB'; Outlook Stable -- EUR15 million Class F (XS0134905545): affirmed at 'B+'; Outlook revised to Negative from Stable The upgrade is mainly due to the limited size of the notes still outstanding compared with the remaining portfolio of non- performing loans to be resolved. It also reflects the expected recoveries of EUR37.5 million from 1,042 positions with full court resolution, which are likely to considerably reduce the outstanding balance of the Class D Notes on the next payment dates. However, the collections performance remains below Fitch's revised base case and, in the six months between September 2007 and March 2008, gross recoveries were stable at EUR28.7 million (compared to the EUR24.6 million for the six- month period to September 2007 and the EUR34.7 million reported in March 2007). Total cumulative gross collections in March 2008 were at EUR666.3 million, some EUR97 million below Fitch's revised base case. After the first three months of the current semester, gross recoveries of the period have reached EUR13.2 million (as of 30 June 2008). The continuously disappointing collections performance and the reducing credit quality of the portfolio outstanding are still exposing the most junior class, Class F, to the risk of missed principal payment by their final legal maturity. Therefore, this class has been affirmed at its current rating, but the Outlook has been revised to Negative. Ares Finance S.r.l. is a securitization of a portfolio of Italian NPL principled by Whitehall 2001 and Goldman Sachs International and serviced by Societa Gestione Crediti and Archon Group Italian Srl (rated 'RSS2+IT'/'CSS2+IT'). At closing in 2001, the GBV of the pool was EUR1,540.5 million. As of June 30, 2008, the outstanding portfolio accounts for 4,203 unresolved claims, for a total GBV of EUR878 million. The pool is mainly located in central (41% by GBV) and southern Italy (27.8% by GBV). Although 17% by GBV is in the distribution phase, 73% by GBV consists of bankrupted claims, for which the recovery timing is generally longer than for claims whose borrower is solvent. =================== K A Z A K H S T A N =================== AGRARNO STROITELNO: Creditors Must File Claims by September 4 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Agrarian Construction-Mounting Company Agrarno Stroitelno-Montajnaya Kompaniya insolvent. Creditors have until Sept. 4, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabaev Str. 109-301 Petropavlovsk North Kazakhstan Kazakhstan AISBERG-LES LLP: Claims Deadline Slated for September 9 ------------------------------------------------------- LLP Georgian-Kazakh Joint Enterprise Aisberg-Les has declared insolvency. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: LLP Georgian-Kazakh Joint Enterprise Aisberg-Les Valihanov Str. 84-60 Almaty Kazakhstan AISK ALMATY: Claims Filing Period Ends September 4 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Aisk Almaty Auyl Kurylysy insolvent. Creditors have until Sept. 4, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Almatinskaya Str. 35 Pokrovka Ilyisky Almaty Kazakhstan Tel: 8 777 226 20-31 BTA Bank: Repays Second Part of US$63 Million Islamic Loan ---------------------------------------------------------- BTA Bank has paid off a US$63 million second piece of Islamic loan as scheduled. The two-year Islamic loan was raised in 2006. The margin for the second tranche was set at 70 b.p. Calyon Bank and Abu Dhabi Islamic Bank acted as mandated lead arrangers of the deal and consulted BTA Bank on Shariah and Mudarabah principles. The total loan amount was US$200 million. The first tranche of US$137 million with a margin of 40 b.p. was repaid in July 2007. The borrowed funds were used to finance BTA clients according to the Shariah law. So far in 2008, BTA Bank has repaid US$623.9 million foreign debts and still has US$74.4 million due by the end of the year, which accounts for 2.3% of its assets. About BTA Bank Headquartered in Almaty, Kazakhstan, JSC BTA Bank -- http://bta.kz/en/-- is among biggest banks and leader in creation of banking network in CIS. BTA operating in the CIS and far-abroad countries is expanding into the CIS countries. Activities of its strategic bank partners cover Ukraine, 4 regions in Russia, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey. BTA runs its representative offices in Russia, Ukraine, China and the United Arab Emirates. In Kazakhstan, BTA's network consists of 22 branches and 256 cash settlement units. * * * Bank TuranAlem carries Long-term foreign currency IDR at BB+ from Fitch Ratings, which said the Outlook was Stable. The company also carries Ba1 Foreign Currency Subordinate Debt Ratings, Ba2 Foreign Currency Junior Subordinate Debt Rating and D- Bank Financial Strength Rating from Moody's Investor Service. INCOMTYRE JSC: Creditors' Claims Due on September 9 --------------------------------------------------- JSC Incomtyre has declared insolvency. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: JSC Incomtyre Kapal batyr Str. Shymkent South Kazakhstan Kazakhstan KAZ INTER: Claims Registration Ends September 9 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared JSC Kaz Inter Etno Spatrul insolvent on June 13, 2008. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 OTANDASTAR KAPCHAGAI: Creditors Must File Claims by September 4 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Otandastar Kapchagai insolvent. Creditors have until Sept. 4, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Almatinskaya Str. 35 Pokrovka Ilyisky Almaty Kazakhstan Tel: 8 777 226 20-31 SK & F OJSC: Claims Deadline Slated for September 9 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared OJSC Corporation SK & F insolvent on June 13, 2008. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 =================== K Y R G Y Z S T A N =================== PLAST CITY: Creditors Must File Proofs Claim by September 2 ----------------------------------------------------------- LLC Plast City has declared insolvency. Creditors have until Sept. 2, 2008, to submit written proofs of claim to: LLC Plast City Bakayev Str. 57/2 Bishkek Kyrgyzstan Tel: (+996 312) 59-58-45 =================== L U X E M B O U R G =================== EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass -------------------------------------------------- Evraz Group S.A. is holding final talks to acquire Industrial Union of Donbass Corporation, Bradley Cook writes Bloomberg News, citing a sourced Kommersant report. According to Bloomberg News, the acquisition would create a combined company with over US$50 billion in market value, which would be the world's fifth-biggest steelmaker. Credit Suisse Group AG is advising the companies in the deal. 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. MILLICOM INT'L: Acquires Amnet Telecoms for US$510 Million ---------------------------------------------------------- Millicom International Cellular S.A. has agreed to acquire 100% of Amnet Telecommunications Holding Limited for an enterprise value of US$510 million. Completion of the acquisition, which is subject to customary approvals, is expected within three months. Amnet began operations in Central America in 1997 and is owned by private investors. It is the leading provider of broadband and cable television services in Costa Rica, Honduras and El Salvador, provides fixed telephony in El Salvador and Honduras, and provides corporate data services in the above countries as well as Guatemala and Nicaragua. Acros its various markets and product offerings, it has in excess of 350,000 corporate and residential customers. In the 12 months ended December 2007, it reported revenue of US$143 million and EBITDA of US$56 million. Central America is Millicom's most important region, accounting for 43% of the group's worldwide revenue, 55% of EBITDA and 38% of subscribers. At Dec. 31, 2007, Millicom's business in Central America had 8.8 million subscribers contributing US$1.2 billion in revenue and US$608 million in EBITDA for the year. Millicom operates under the Tigo brand across Central America and is the number one mobile operator in Guatemala, El Salvador and Honduras. "This transaction is an important step in the development of our strategy for Central America," Marc Beuls, President and CEO of Millicom, commented. There is today a lack of fixed line infrastructure to carry broadband services but customers in these markets are increasingly demanding access to broadband services, and in order to satisfy this demand we are launching 3G services across the region in the second half of 2008. the acquisition of Amnet will bring us in excess of 350,000 high ARPU customers, and also dramatically extend our IP network, thereby enabling us to provide enhanced broadband and cable television in conjunction with our new 3G mobile service." "In recent years, Amnet has established a leading franchise in Central America due to the tremendous effort of its employees and the support of its customers," Mike Kazma, a founder of Amnet, who will continue to support the company as a consultant, stated. Millicom is ideally placed to take this company to the next stage and to take advantage of the exciting growth opportunities in these markets for broadband and cable TV services." About Millicom International Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. * * * Millicom International Cellular S.A. continues to carry Moody's Investors Service's Ba2 corporate family rating. The rating was previously at Ba3 and was upgraded by Moody's to its current level in November 2007. The company also carries B1 rating on its existing senior notes from Moody's. Moody's said the outlook on the ratings is stable. MILLICOM INT'L: S&P's Outlook Unchanged on Amnet Acquisition ------------------------------------------------------------ Standard & Poor's Ratings Services said its ratings and outlook on Millicom International Cellular S.A. (BB/Stable/--) were unchanged following the company's agreement to acquire 100% of Central American broadband and cable TV operator, Amnet Telecommunications Holding Ltd. (not rated) for US$510 million. The Amnet purchase will accelerate Millicom's strategy of providing broadband offerings on top of its mobile telephony services in the region. With about US$900 million in cash at the end of June 2008, S&P expects Millicom to maintain sufficient cash and liquidity over the medium term, despite its intention to repay about US$460 million of bonds in December 2008 and to fund 50% of the Amnet acquisition with cash. The remaining 50% will be funded through debt at the operating company level. S&P expects the transaction to close in the next three months. Amnet Telecommunications Holding Ltd. is the leading provider of broadband and cable services in Costa Rica, Honduras, and El Salvador, and also provides fixed telephony services and corporate data services in selected Central American countries. ===================== N E T H E R L A N D S ===================== ICTS INTERNATIONAL Mahoney Cohen Expresses Going Concern Doubt --------------------------------------------------------------- Mahoney Cohen & Company, CPA, P.C., raised substantial doubt about the ability of ICTS International N.V. to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007. Mahoney Cohen pointed out that the company has suffered recurring losses from operations, net working capital and stockholders' deficit. The auditing firm also added that the company's U.S. subsidiary is in default of its loan covenants and is subject to potential contingencies. Mahoney Cohen also stated that the company's significant litigation relates to the Sept. 11, 2001, terrorist attacks in the United States, and the company's insurance carriers have canceled all its war risk policies. In addition, the company is involved in other potential contingencies including a dispute between the company and the United States Transportation Security Administration, with respect to the basis of calculation of payments for security services rendered by the company in 2002, in respect of which, the TSA might be claiming refund of material amounts. The company posted a total comprehensive loss of US$1,981,000 on total revenues of US$64,780,000 for the year ended Dec. 31, 2007, as compared with a total comprehensive loss of US$14,365,000 on total revenues of US$60,791,000 in the prior year. Losses of Associated Companies The company's share in losses of associated companies during 2007 totaled US$2,500,000 compared with US$132,000 in 2006. The company had 50% in the partnership ICTS Netherlands Airport Services VOF. The partnership had one contract with Schiphol airport in Amsterdam, which was to terminate on Feb. 1, 2008. The partnership is in the process of liquidation during 2008. During 2007, ICTS recognized losses of US$2,200,000, which included an impairment of US$332,000, compared with profit of US$1,300,000 in 2006. The company recognized losses of US$284,000 in 2007 from its investment in Inksure Technologies, Inc., compared with the US$1,400,000 losses in 2006. ICTS's loss from continuing operations in 2007 was US$8,000,000 compared with US$9,800,000 in 2006. ICTS's profit from discontinued operations in 2007 totaled US$5,400,000 compared with a loss of US$4,200,000 in 2006. The company had net cash used in operating activities of US$3,600,000 and US$7,600,000 in 2007 and 2006, respectively. At Dec. 31, 2007, the company had negative equity and a working capital deficit of US$11,700,000. If the company does not achieve new service contracts and profitability, its viability will be in question and its share price will likely decline. Balance sheet At Dec. 31, 2007, the company's balance sheet showed US$27,103,000 in total assets and US$47,713,000 in total liabilities, resulting in a US$20,610,000 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$18,644,000 in total current assets available to pay US$30,305,000 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2fc0/ Significant Events in Operations One major event in 2001 and early 2002 significantly changed the company's business operations: the passage of the Aviation and Transportation Security Act, or TSA, by the United States Congress in response to the terrorist attacks on September 11, 2001, pursuant to which the Federal Government through the TSA took over aviation security services in the U.S. in November 2002. As a result of this event, the company had limited aviation security operations in the U.S. In February 2002, the company entered into an aviation security services contract with the TSA to continue to provide aviation security services in all of the company's current airport locations until the earlier of either the completed transition of these security services on an airport by airport basis to the U.S. Federal Government or November 2002. In connection with payments made by the TSA to Huntleigh USA Corporation, a wholly owned subsidiary of the company, for aviation security services provided in 2002, the Defense Contract Management Agency has indicated that it believed that Huntleigh should not have been paid on a fixed price basis as believed by Huntleigh, but on an actual costs plus, what the TSA would consider a reasonable profit. On that later basis, Huntleigh may be required to repay to the TSA the difference between such amount and the actual amounts paid to it. Huntleigh, however, has various claims for additional amounts it considers are due to it for the services provided to the TSA. If the TSA will claim such difference from Huntleigh and will prevail in all of its contentions, and none of Huntleigh's claims will be recognized, then the company may suffer a loss in an amount of about US$59,000,000. The company is engaged in litigation with the FAA/TSA. The company has made no provisions with respect to these potential claims. Huntleigh USA's main business was providing airport security services to airlines and airports but as a result of the creation of the TSA and the requirement that the TSA take over airport security, Huntleigh has lost its principal business. Huntleigh has sued the U.S. Government for the "Taking" of its business and to protect its rights under the Fifth Amendment of the U.S. Constitution. Huntleigh sought to recover the going concern value of the lost business. The suit was brought in the U.S. Court of Federal Claims. The Court has decided against the company. The company appealed this decision, and the U.S. Court of Appeals for the Federal Circuit affirmed the lower court's ruling against the company. Potential Liability Claims As a result of the September 11 terrorist attacks, numerous lawsuits also have been commenced against the company and the company's U.S. subsidiary. The cases arise out of airport security services provided for United Flight 175 out of Logan Airport in Boston, Mass., which crashed into the World Trade Center. In addition to the present claims, additional claims may be asserted. The outcome of these or additional cases is uncertain. If there is an adverse outcome with respect to any of these claims, which is not covered by insurance, then there may be a significant adverse impact on the company. Company Strategy The company's success will be dependent upon its ability to change its business strategy. As part of its new business strategy, the company intends to develop technological solutions and systems for the aviation security industry, develop or acquire security activities other than aviation security, and seek other revenue producing businesses and business opportunities. About ICTS International Headquartered in Amstelveen, The Netherlands, ICTS International N.V. -- http://www.icts-tech.com/-- has interests in a variety of businesses and ventures. Its current principal activity consists of providing manpower-based aviation security services in the Netherlands and non-security related manpower-based general aviation services in the U.S.A. Its other activities consist primarily of the development of integrated technological solutions designed for enhancing processing time of passengers at airports and other gateways and the establishment and operation of motion-based entertainment theaters in the U.S.A. NXP B.V.: Moody's Lowers Corporate Family Rating to B2 from B1 -------------------------------------------------------------- Moody's Investors Service downgraded NXP Semiconductors' corporate family rating to B2 from B1, its senior secured notes to B2 from Ba3 and senior unsecured notes to Caa1 from B3. The ratings have been placed on review for possible further downgrade in which case the LGD assessments and point estimates are also subject to change. The rating action reflects NXP's very disappointing second results indicating a reversal of its improving profitability trend and increasing cash consumption against an eroding cash position. In its earnings release, NXP reported: (i) a factory load declining to 78% from 87% in the previous quarter; (ii) an EBIT loss, as adjusted by the company, as the impact of the weakening US dollar more than offset internal cost saving measures; and (iii) net cash consumption of about US$830 million for the first half 2008 which reduced the liquidity buffer (cash balances net of cash held at non-guarantors plus the undrawn portion of a EUR500 million credit facility) to about US$630 million from US$930 million at the end of March 2008. In July 2008, a special dividend of about US$120 million received from subsidiary Silicon Manufacturing Co. Pte. Ltd. (SSMC) added to the liquidity position. Still, the company's liquidity profile is increasingly reliant on the completion of the wireless joint venture with STMicroelectronics (Baa1) and receipt of the US$1.55 billion compensation payment and achievement of solid free cash flows. Moody's noted, that the downgrade of the CFR to B2 led to a two- notch downgrade of the senior secured notes (to B2, LGD3 (46%)) due to an increasing level of accounts payable compared to June 2007 and the drawdown of the secured credit facility, which Moody's has ranked ahead of the NXP's bond obligations. The B2 CFR for NXP still expects: (i) no further decline in revenues or load factors as indicated by the reported book-to-bill ratio above one; (ii) execution of measures to reduce working capital and substantially curb the trend of high cash consumption in the second half of the fiscal year; and (iii) conclusion of the wireless joint venture with STMicroelectronics in third quarter 2008 with receipt of the full initial payment payment (US$1.55 billion). The review of the B2 rating will focus on management's measures to mitigate the unfavorable impact of the US$ exposure and to reverse cash consumption as well as on the closing of the wireless joint venture, including receipt and planned use of the cash proceeds. Moody's review period may by extended in this case to include the 3rd quarter cash flow performance of NXP into the analysis. Downgrades: Issuer: NXP B.V. * Probability of Default Rating, Downgraded to B2 from B1 * Corporate Family Rating, Downgraded to B2 from B1 * Senior Secured Regular Bond/Debenture, Downgraded to B2, LGD3, 46% from Ba3, LGD3, 42% * Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1, LGD5, 88% from B3, LGD5, 87% Outlook Actions: Issuer: NXP B.V. * Outlook, Changed To Rating Under Review From Negative About NXP Semiconductors NXP Semiconductors, headquartered in Eindhoven, Netherlands, is one of the largest semiconductor companies worldwide, focusing on the designs and manufacture of application-specific integrated circuits for the home electronics, mobile communications, automotive and identification technology application markets. Revenues were EUR4.6 billion in 2007. =========== R U S S I A =========== AOEIE IRKUTSKENERGO: Unit's Restructuring Cues S&P's Neg. Watch --------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B+' long-term corporate credit and 'ruA' Russia national scale ratings on Russian regional power and heat utility Irkutskenergo, AO EiE on CreditWatch with negative implications. "The CreditWatch placement reflects potential weakening of the company's credit quality after the demerger of its 100% subsidiary, Irkutsk Electricity Grid Co., expected by year-end 2008," said S&P's credit analyst Eugene Korovin. Irkutskenergo's weak liquidity, which is further pressured by potential liquidity claims triggered by Irkutsk Electricity's unbundling is also a major factor in the CreditWatch placement." In June 2008, Irkutskenergo's board approved the company's restructuring through the spin-off of Irkutsk Electricity. If Irkutskenergo's shareholders vote in support of the plan on Sept. 5, 2008, the restructuring should be complete by year-end 2008. The restructuring will likely weaken Irkutskenergo's business and financial profiles, as Irkutskenergo is spinning off the grid operations, but retaining most of the consolidated debt, and the regulated grid operations provide more stable cash flow than the generation operations. Moreover, the financial profile could weaken even further if Irkutskenergo has to finance the obligatory share buyback from minority shareholders who abstain or vote against the restructuring plan. Although the current ratings incorporate some weakening in the company's credit quality, the ratings assume that Irkutskenergo would retain adequate cash flow protection. Depending on the results of Irkutskenergo's plan for partial debt transfer to Irkutsk Electricity, the amount of the buy-back claims, and the planned refinancing of the company's short-term debt with a RUR5 billion bond issue in September 2008, the company's financial profile may not remain adequate for the current ratings. The current ratings reflect Irkutskenergo's controlling shareholders' strong interest in access to Irkutskenergo's cheap electricity production, the absence of efficient corporate governance mechanisms, restructuring risk, Russia's evolving industry regulatory regime, high customer concentration, and weak liquidity. Irkutskenergo has weak liquidity. The company's 2008 investment program exceeds its projected operating cash flow, and its financing relies on new borrowing. Irkutskenergo's terms of access to capital markets has worsened due to general market conditions, as well. The obligatory share buyback, which must be completed within 75 days of the vote on restructuring, may put further pressure on liquidity. The company plans to manage its liquidity risk by securing committed bank lines and refinancing most of its short-term debt with long-term debt before the restructuring is complete. S&P plans to resolve the CreditWatch listing after the company's postrestructuring debt leverage and structure have been clarified. The ratings could be affirmed if Irkutskenergo manages its financial risk, with FFO to debt of more than 25%. "However, if the company ends up with more aggressive cash flow protection measures, coupled with continued weak debt structure and liquidity, the ratings could be lowered," said Mr. Korovin. BALTIC DAIRI: Creditors Must File Claims by August 28 ----------------------------------------------------- Creditors of CJSC Baltic Dairi Group have until Aug. 28, 2008, to submit proofs of claim to: P. Tarasov Insolvency Manager Post User Box 19 OPS-100 170100 Tver Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-53567/2005. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Baltic Dairi Group Trudyashikhsya Str. 27 Kolpino 196657 St. Petersburg Russia DINAMO LLC: Creditors Must File Claims by August 21 --------------------------------------------------- Creditors of LLC Sport Club Dinamo have until Aug. 21, 2008, to submit proofs of claim to: A. Savin Insolvency Manager 214018 Smolensk Post User Box 11 Russia The Arbitration Court of Bryansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-09-6916/07-34. The Court is located at: The Arbitration Court of Bryansk Room 602 Trudovoy Per. 5 Bryansk Russia The Debtor can be reached at: LLC Sport Club Dinamo 2nd Sovetskiy Per. 9a 241000 Bryansk Russia EAST LLC: Bashkortostan Bankruptcy Hearing Slated for October 20 ---------------------------------------------------------------- The Arbitration Court of Bashkortostan will convene at 10:30 a.m. on Oct. 20, 2008, to hear the bankruptcy supervision procedure on LLC Mine-Ore Company East (TIN 0201005577). The case is docketed under Case No. 07-3898/2008-G-GIA. The Temporary Insolvency Manager is: E. Koptilov Post User Box 75 Ufa 450038 Bashkortostan Russia The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Mine-Ore Company East Kommunisticheskaya Str. 8 Askarovo Abzelilovskiy 453620 Bashkortostan Russia EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass -------------------------------------------------- Evraz Group S.A. is holding final talks to acquire Industrial Union of Donbass Corporation, Bradley Cook writes Bloomberg News, citing a sourced Kommersant report. According to Bloomberg News, the acquisition would create a combined company with over US$50 billion in market value, which would be the world's fifth-biggest steelmaker. Credit Suisse Group AG is advising the companies in the deal. 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. FINDER CJSC: Creditors Must File Claims by August 21 ---------------------------------------------------- Creditors of CJSC Finder have until Aug. 21, 2008, to submit proofs of claim to: V. Fedoseev Insolvency Manager Room 2 Konno-Lakhtinskiy Pr. 12 Olgino St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-33390/2006. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Finder Room 2 Konno-Lakhtinskiy Pr. 12 Olgino St. Petersburg Russia LEADER LLC: St. Petersburg Bankruptcy Hearing Set August 25 ----------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad will convene at 10:00 a.m. on Aug. 25, 2008, to hear the bankruptcy supervision procedure on LLC Leader (TIN 7811316872). The case is docketed under Case No. A56-5652/2008. The Temporary Insolvency Manager is: E. Kubakhov Post User Box 12 394038 Voronezh Russia The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Leader Letter A Narodnaya Str. 59, 1 St. Petersburg Russia MEGA-STROY-PROM: Creditors Must File Claims by August 21 -------------------------------------------------------- Creditors of CJSC Mega-Stroy-Prom (TIN 6319084091) have until Aug. 21, 2008, to submit proofs of claim to: M. Igoshin Insolvency Manager Office 313 Zaporozhskaya Str. 19 443066 Samara Russia The Arbitration Court of Samara commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-14663/2007-36. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: CJSC Mega-Stroy-Prom Room 27 Kirova Pr. 2A Samara Russia METAL-SERVICE LLC: Creditors Must File Claims by August 21 ---------------------------------------------------------- Creditors of LLC Metal-Service have until Aug. 21, 2008, to submit proofs of claim to: E. Kasatkin Insolvency Manager Post User Box 15626 443016 Samara Russia The Arbitration Court of Samara commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-2567/2008. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: LLC Metal-Service Rodiny Str. 4-2 Tolyatti Samara Russia MOBILE TELESYSTEMS: Faces US$50 Million Back-Tax Claim ------------------------------------------------------ Mobile TeleSystems OJSC has received a RUR1.19 billion back tax claim from the Russian Federal Tax Service for years 2005 and 2006, RIA Novosti reports. According to MTS, RIA Novosti relates, the tax claim includes penalties and fines, related mostly to inter-operator settlements. MTS plans to challenge the tax claim in a court of law. About Mobile TeleSystems Headquartered in Moscow, Russia, OJSC Mobile TeleSystems (NYSE:MBT) -- http://www.mtsgsm.com/-- provides wireless telecommunications services operator in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. * * * Mobile TeleSystems continues to carry a Long-term Issuer Default rating of 'BB+', National Long-term rating of 'AA(rus)' and Short-term IDR of B from Fitch Ratings, with stable outlook. The ratings were assigned April 2008. Mobile TeleSystems also carries Ba2 Corporate Family and Probability-of-Default ratings from Moody's Investors Service, which says the outlook is positive. NIKOLAEVSKAYA FISHING: Creditors Must File Claims by July 28 ------------------------------------------------------------ Creditors of OJSC Nikolaevskaya Fishing-Reclamation Station have until July 28, 2008, to submit proofs of claim to: V. Goryachkin Temporary Insolvency Manager Post User Box 345 115230 Moscow-230 Russia The Arbitration Court of Volgograd will convene at 9:30 a.m. on Sept. 22, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A12-4496/08-s58. The Debtor can be reached at: OJSC Nikolaevskaya Fishing-Reclamation Station Leninskogo Komsomola Pr. 11-47 Kodinsk Kezhemskiy 663491 Volgograd Russia NIVA CRYSTAL: Creditors Must File Claims by August 21 ----------------------------------------------------- Creditors of CJSC Niva Crystal have until Aug. 21, 2008, to submit proofs of claim to: B. Borisevich Insolvency Manager Office 509 B. Khmelnitskogo Pr. 133zh Belgorod Russia The Arbitration Court of Belgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-171/08-14B. The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Niva Crystal Vasil Dol Novooskolskiy Belgorod Russia NOVOBEZGINSKOE CJSC: Creditors Must File Claims by August 21 ------------------------------------------------------------ Creditors of CJSC Novobezginskoe have until Aug. 21, 2008, to submit proofs of claim to: V. Petrochenko Insolvency Manager Office 509 B. Khmelnitskogo Pr. 133zh Belgorod Russia The Arbitration Court of Belgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-172/08-11-14B. The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Novobezginskoe Novaya Bezginka Novooskolskiy Belgorod Russia OGK-5 OAO: Inks Deal for Cycle Gas Turbine Plant Construction ------------------------------------------------------------- A.Y. Kopsov, JSC OGK-5 Director General, Livio Vidon, Executive Director of Enel Produzione S.p.A. and T.V. Ivanov, Vice- President of ZAO Atomstroyexport, signed the contract for the engineering, procurement and construction of the 410 MW CCGT power unit on the site of the Nevinomysskaya GRES. The new combined cycle gas turbine plant is going to be commissioned at the end of 2010, in line with the investment program that OGK-5 had previously announced. This contract follows the procurement of the main equipment for the plant, that will be supplied by OAO Power Machines by the end of 2009, and that includes a 277.2 MW gas turbine with Siemens 1xSGT5- PAC 4000F generator, a 134.55 MW steam turbine with Siemens SST-900-RH generator and a CMI boiler. The plant will employ the latest technology with an efficiency rate of 57%. By replacing300 MW of older, low-efficiency units, this plant will allow a reduction in specific consumption of natural gas, increase the installed capacity and the reliability of the plant in one of the highest growth region in the country, and make the plant compatible with NOREM. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * OAO OGK-5 continues to carry Ba3 Corporate Family and Probability-of-Default ratings from Moody's Investors Service. Moody's said the Outlook is Stable OIL-BITUMEN OJSC: Creditors Must File Claims by July 28 ------------------------------------------------------- Creditors of OJSC Oil-Bitumen (TIN 2348004784) have until July 28, 2008, to submit proofs of claim to: E. Rebgun Temporary Insolvency Manager: Zvenigorodskoe Shosse 3 123022 Moscow Russia The Arbitration Court of Krasnodar will convene at 11:00 a.m. on Dec. 8, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A32-8099/ 2008-38/237B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: OJSC Oil-Bitumen 50 Let Oktyabray Str. 125 Ilskiy Severskiy 353242 Krasnodar Russia OPIN JSC: Fitch Assigns 'B' Long-Term and Short-Term ID Ratings --------------------------------------------------------------- Fitch Ratings has assigned Russian property developer JSC OPIN ratings of Long-term Issuer Default, Short-term IDR and senior unsecured 'B'. A National Long-term rating of 'BBB+(rus)' is assigned. Both the Long-term IDR and National Long-term rating are on Positive Outlook. OPIN is a Moscow-based property developer focusing on suburban housing and Class A offices with assets of US$3.5 billion as of FYE07. The Positive Outlook reflects Fitch's expectation that OPIN's credit profile will improve if the company successfully executes its planned expansion strategy. A one-notch upgrade would likely occur within the next 12-18 months should OPIN demonstrate an ability to successfully achieve its expected step-up in volumes, including a re-zoning of land and achieving its financial forecasts. OPIN's ratings are supported by its good position in a currently buoyant Moscow real estate market. In Fitch's opinion, strong underlying fundamentals, such as rising income levels, suburbanization and corporate growth will support OPIN's suburban housing and Class A office developments. OPIN's ratings are also supported by the company's large free- hold land bank, totaling 121 million sq m as of July 2008; by comparison, OPIN consumed only 1 million sq m of land in 2007. Much of the land has been acquired at low cost, funded by equity rather than debt, and is well-located, often adjacent to key transport routes into Moscow. This, along with OPIN's proven expertise in navigating through a complex planning & approvals process, should support the company's plans to significantly grow volumes. Other positive rating factors include a strong equity base (boosted by a US$491 million rights issue in June 2008), an experienced management team, cost savings through new pre-fabricated production, and moderate forecast leverage (below 2.5x) during 2009-2011 (despite a temporary peak in 2008). In addition, OPIN currently has moderate liquidity given, as of Fiscal Year Ended 07, its access to cash of USD427 million (further boosted in H108 by US$491 million of equity proceeds) and long-term undrawn credit lines of US92 million (which were further increased during first half 2008), sufficiently covering short-term debt of US$104 million and an expected negative FCF in FY08. The ratings are restricted by inherent risks in the Russian real estate market, notably an evolving legal regime, a bureaucratic planning & approvals system, potentially volatile demand, the risk of project delays and cost overruns, and shortages in skilled labor and building materials. Rising inflation in Russia is also a risk, as this could dampen demand for OPIN's developments and increase input costs, although Fitch expects the company would be able to pass on a large portion of any cost increases to its customers. The ratings are also limited by the geographic concentration of the land bank, situated largely in regions north and west of Moscow. Negative socio-economic developments in these regions, such as delays in rolling out planned infrastructure, could harm demand, although this is partially mitigated by OPIN's phasing of larger projects. Fitch also takes comfort from the considerable political momentum behind key infrastructure projects in the Moscow regions, such as the new Moscow-St Petersburg highway. OPIN also faces significant execution risks, especially given its lack of track-record in delivering volumes on the scale forecasted. This risk is amplified by the fact that about 83% of OPIN's land bank is currently zoned as agricultural land and must go through a costly and time-consuming re-zoning process. However, OPIN has a good track record of re-zoning, which has provided enough zoned land (21 million sq m) to support near term operations. Fitch also has concerns about the ongoing split of joint assets owned by Vladimir Potanin and Mikhail Prokhorov, the majority shareholders of OPIN (with 35% and 25% ownership respectively), which could lead to corporate governance changes or protracted legal challenges. Other factors limiting the ratings include a lack of stabilizing rental income until at least 2010, a shift in strategy away from lower-risk pre-sales towards speculative development, forecast negative free cash flow in 2008/2009, and thin forecast interest coverage of 2.5x-2.7x during 2008-2010. STILE LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------- The Arbitration Court of Tambov has commenced bankruptcy supervision procedure on LLC Stile (6827009473). The case is docketed under Case No. A64-2089/08-25. The Temporary Insolvency Manager is: V. Sutormin Sovetskaya Str. 71 Krasivoe Michurinskiy 393760 Tambov Russia The Court is located at: The Arbitration Court of Tambov Penzenskaya Str. 67/12 392020 Tambov Russia The Debtor can be reached at: LLC Stile Room 2 Internatsionalnaya Str. 134a Michurinsk Tambov Russia VIMPEL-COMMUNICATIONS: OJSC Faces US$54 Million Back Tax Claim -------------------------------------------------------------- OJSC Vimpel-Communications has received a US$54 million back tax claim from the Russian Federal Tax Service for years 2005 and 2006, RIA Novosti reports. According to RIA Novosti, the tax claim excludes penalties and fines. Vimpelcom plans to challenge the tax claim in a court of law. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * OJSC Vimpel-Communications continues to carry Ba2 Corporate Family, Probability-of-Default and Senior Unsecured Debt Ratings with stable outlook from Moody's Investors Service. The agency affirmed the ratings in April 2008. The company also continues to carry BB+ long-term corporate credit and unsecured senior debt ratings with stable outlook from Standard & Poor's Ratings Services. VOLGA-SPIRIT LLC: Creditors Must File Claims by August 21 --------------------------------------------------------- Creditors of LLC Volga-Spirit (TIN 7709568406) have until Aug. 21, 2008, to submit proofs of claim to: I. Kostina Insolvency Manager Apt. 52 Zhukova Str. 20 394077 Voronezh Russia The Arbitration Court of Tula commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-9636/07-383/B. The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: LLC Volga-Spirit Stroiteley Str. 2 Efremov 301840 Tula Russia WEST LLC: Creditors Must File Claims by August 21 ------------------------------------------------- Creditors of LLC Transport Company West have until Aug. 21, 2008, to submit proofs of claim to: M. Starkov Insolvency Manager Borovaya 11 Ulan-Ude 670045 Buryatiya Russia The Arbitration Court of Buryatiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10-778/08. The Debtor can be reached at: LLC Transport Company West Magistralnaya Str. 4a Taksimo Muyskiy 671561 Buryatiya Russia YARSKOE CJSC: Creditors Must File Claims by August 21 ----------------------------------------------------- Creditors of CJSC Yarskoe have until Aug. 21, 2008, to submit proofs of claim to: B. Borisevich Insolvency Manager Office 509 B. Khmelnitskogo Pr. 133zh Belgorod Russia The Arbitration Court of Belgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-174/08-14B. The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Yarskoe Yarskoe Novooskolskiy Belgorod Russia ========= S P A I N ========= AYT COLATERALES: Fitch Assign BB- Rating on EUR6MM Class D Notes ---------------------------------------------------------------- Fitch Ratings has assigned AyT Colaterales Global Hipotecario, FTA Serie AyT Colaterales Global Hipotecario Caixa Laietana I's EUR170 million mortgage-backed floating-rate notes due in March 2048 final ratings, as: -- EUR145.4 million Class A: 'AAA'; Outlook Stable -- EUR13.5 million Class B: 'A'; Outlook Stable -- EUR5.1 million Class C: 'BBB-'; Outlook Stable -- EUR6 million Class D: 'BB-'; Outlook Stable This transaction is a cash flow securitization of a EUR170 million static pool of first-ranking Spanish mortgage loans originated and serviced by Caixa d'Estalvis Laietana (Caixa Laietana, rated 'BBB+'/'F2'/Outlook Stable). The final ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement, the integrity of the transaction's legal and financial structure and Ahorro y Titulizacion S.A., S.G.F.T.'s administrative capabilities. Initial CE for the Class A to D notes is provided by subordination and a reserve fund, which has been fully funded at closing using a subordinated loan. The final ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C and D notes, as well as the repayment of principal by legal final maturity. Should the deferral trigger on the Class B, C and D notes be hit, interest on these notes will be deferred in the priority of payments. In this instance, interest payments might not be received for a period of time, but will be received by legal final maturity. The fund is regulated by Spanish Securitization Law 19/1992 and Royal Decree 926/1998. Its sole purpose is to transform into fixed-income securities a portfolio of mortgages certificates acquired from Caixa Laietana. The CTHs are subscribed by Ahorro y Titulizacion S.A., S.G.F.T., whose sole function is to manage asset-backed notes on behalf of the fund. AYT GOYA: Fitch Rates EUR3.25 Million Class D Notes at BB --------------------------------------------------------- Fitch Ratings has assigned expected ratings to AyT Goya Hipotecario II, Fondo de Titulizacion de Activos' notes, totalling EUR1300 million, due in Feb. 2051, as: -- EUR1238.25 million Class A: 'AAA'; Outlook Stable -- EUR39 million Class B: 'A'; Outlook Stable -- EUR19.5 million Class C: 'BBB'; Outlook Stable -- EUR3.25 million Class D: 'BB'; Outlook Stable The final ratings are contingent upon the receipt of final documents conforming materially to information already received. This transaction is a cash-flow securitization of a EUR1300 million static pool of residential mortgage loans granted by Barclays Bank, S.A. (BBSA), an entity 99.7%-owned by Barclays Bank PLC (rated 'AA'/'F1+'/Outlook Stable). The expected ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement, the integrity of the transaction's legal and financial structures and Ahorro y Titulizacion S.G.F.T, S.A's administrative capabilities Initial CE for the Class A to D notes is provided by subordination and a reserve fund, which has been fully funded at closing using a subordinated loan. The expected ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C and D notes, as well as the repayment of principal at legal final maturity. Should the deferral trigger on the Class B, C and D notes be hit, interest on these notes will be deferred in the priority of payments. In this instance, interest payments might not be received for a period of time, but will be received by legal final maturity. The fund will be regulated by Spanish Securitization Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to convert mortgage transmission certificates from the seller into fixed- income securities. The fund will be legally represented and managed by Ahorro y Titulizacion S.G.F.T, S.A, a limited liability company incorporated under Spanish law, whose activities are limited to the management of securitization funds. SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses ------------------------------------------------------------ Spanair S.A. has disclosed a Feasibility Plan to face the current crisis that the airline industry is going through as a consequence of the high fuel prices and the decrease of demand. In order to ensure the future profitability of the Company, the plan implies reduction of capacity and staff. The Feasibility Plan is based on four strategic pillars: * re-dimensioning of the aircraft capacity; * cost reductions, * improvement of efficiency; and * revenue improvement measures. As a necessary measure to stop the company losses, worsened by the record high fuel prices, Spanair will ground an estimated number of 15 aircraft during September and October. The total earnings effect in 2009 from all the measures is estimated to EUR90 million. Spanair will cancel nine unprofitable routes: * Madrid-Viena, * Madrid-Munich, * Madrid-Girona, * Madrid-San Sebastian, * Madrid-Granada, * Madrid-Oviedo, * Barcelona-Zurich, * Bilbao-Malaga, and * Bilbao-Jerez as the present and future demand does not justify their continuity. Following the capacity reduction, Spanair will operate over 80% of its network and will continue as the second largest operator in the market with 260 daily flights to 48 destinations. "I am proud to see that in this challenging environment Spanair can lead the process to normalize capacity in the Spanish market and still maintain its position as the number one full service airline out of Barcelona, and as the second largest airline out of Madrid." said Marcus Hedblom, Spanair CEO. The implementation of the Feasibility Plan, whose main guidelines have been presented today to all personnel and the Union representatives, will also imply the reduction of approximately 900 full-time positions. The Company will continue working on the definition of concrete measures included in this Feasibility Plan to start negotiating with the Union representatives in order to place it in force during the month of September. About Spanair Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an airline subsidiary of SAS AB. It provides a scheduled passenger network within Spain and Europe, with an extension to West Africa. About SAS Headquartered in Stockholm, Sweden, SAS AB -- http://www.sasgroup.net/-- owns SAS Group, which engages in the provision of air transport and related services. The governments of Sweden, Denmark and Norway own 50% of the company. * * * SAS AB currently carries Moody's Investors Service's B1 Corporate Family and Senior Secured Debt Rating. SAS AB: Spanair Sells Club Vacaciones Tour Unit ----------------------------------------------- Spanair S.A. has made the decision to sell Club Vacaciones TTOO linked to the airline company for more than 20 years. This sale is part of the business strategy implemented by Spanair and SAS Group, to focus on the airline industry. Spanair owns at present 100% Club Vacaciones share capital. After 45 years Club Vacaciones is one of the most dynamic and powerful Spanish Tour Operators. This company is focused on charter and scheduled flights, mainly operated by Spanair, and the launch of new touristic destinations. This TTOO has eight branch companies and 104 employees. About Spanair Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an airline subsidiary of SAS AB. It provides a scheduled passenger network within Spain and Europe, with an extension to West Africa. About SAS Headquartered in Stockholm, Sweden, SAS AB -- http://www.sasgroup.net/-- owns SAS Group, which engages in the provision of air transport and related services. The governments of Sweden, Denmark and Norway own 50% of the company. * * * SAS AB currently carries Moody's Investors Service's B1 Corporate Family and Senior Secured Debt Rating. =========== S W E D E N =========== SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses ------------------------------------------------------------ Spanair S.A. has disclosed a Feasibility Plan to face the current crisis that the airline industry is going through as a consequence of the high fuel prices and the decrease of demand. In order to ensure the future profitability of the Company, the plan implies reduction of capacity and staff. The Feasibility Plan is based on four strategic pillars: * re-dimensioning of the aircraft capacity; * cost reductions, * improvement of efficiency; and * revenue improvement measures. As a necessary measure to stop the company losses, worsened by the record high fuel prices, Spanair will ground an estimated number of 15 aircraft during September and October. The total earnings effect in 2009 from all the measures is estimated to EUR90 million. Spanair will cancel nine unprofitable routes: * Madrid-Viena, * Madrid-Munich, * Madrid-Girona, * Madrid-San Sebastian, * Madrid-Granada, * Madrid-Oviedo, * Barcelona-Zurich, * Bilbao-Malaga, and * Bilbao-Jerez as the present and future demand does not justify their continuity. Following the capacity reduction, Spanair will operate over 80% of its network and will continue as the second largest operator in the market with 260 daily flights to 48 destinations. "I am proud to see that in this challenging environment Spanair can lead the process to normalize capacity in the Spanish market and still maintain its position as the number one full service airline out of Barcelona, and as the second largest airline out of Madrid." said Marcus Hedblom, Spanair CEO. The implementation of the Feasibility Plan, whose main guidelines have been presented today to all personnel and the Union representatives, will also imply the reduction of approximately 900 full-time positions. The Company will continue working on the definition of concrete measures included in this Feasibility Plan to start negotiating with the Union representatives in order to place it in force during the month of September. About Spanair Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an airline subsidiary of SAS AB. It provides a scheduled passenger network within Spain and Europe, with an extension to West Africa. About SAS Headquartered in Stockholm, Sweden, SAS AB -- http://www.sasgroup.net/-- owns SAS Group, which engages in the provision of air transport and related services. The governments of Sweden, Denmark and Norway own 50% of the company. * * * SAS AB currently carries Moody's Investors Service's B1 Corporate Family and Senior Secured Debt Rating. SAS AB: Spanair Sells Club Vacaciones Tour Unit ----------------------------------------------- Spanair S.A. has made the decision to sell Club Vacaciones TTOO linked to the airline company for more than 20 years. This sale is part of the business strategy implemented by Spanair and SAS Group, to focus on the airline industry. Spanair owns at present 100% Club Vacaciones share capital. After 45 years Club Vacaciones is one of the most dynamic and powerful Spanish Tour Operators. This company is focused on charter and scheduled flights, mainly operated by Spanair, and the launch of new touristic destinations. This TTOO has eight branch companies and 104 employees. About Spanair Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an airline subsidiary of SAS AB. It provides a scheduled passenger network within Spain and Europe, with an extension to West Africa. About SAS Headquartered in Stockholm, Sweden, SAS AB -- http://www.sasgroup.net/-- owns SAS Group, which engages in the provision of air transport and related services. The governments of Sweden, Denmark and Norway own 50% of the company. * * * SAS AB currently carries Moody's Investors Service's B1 Corporate Family and Senior Secured Debt Rating. ===================== S W I T Z E R L A N D ===================== DIVE ADVENTURE: Creditors Must File Proofs of Claim by Sept. 13 --------------------------------------------------------------- Creditors owed money by LLC Dive Adventure are requested to file their proofs of claim by Sept. 13, 2008, to: Carmen Meyer Tosstalstrasse 361a 8482 Sennhof Switzerland The company is currently undergoing liquidation in Winterthur. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 21, 2007. DUFT KLINIK: Creditors Have Until August 14 to File Claims ---------------------------------------------------------- Creditors owed money by LLC Duft Klinik are requested to file their proofs of claim by Aug. 14, 2008, to: Baarerstrasse 53 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 14, 2008. FASSAG JSC: Court Commences Bankruptcy Proceedings -------------------------------------------------- The Bankruptcy Service of Altstetten-Zurich commenced bankruptcy proceedings against JSC Fassag on April 23, 2008. Deadline for the submission of proofs of claim is on Aug. 4, 2008. The Bankruptcy Service of Altstetten-Zurich can be reached at: Bankruptcy Service of Altstetten-Zurich 8048 Zurich Switzerland The company can be reached at: JSC Fassag Bielweg 4 5107 Schinznach Switzerland FITMACHER LLC: Sets Aug. 15 Deadline for Filing Proofs of Claim --------------------------------------------------------------- Creditors owed money by LLC Fitmacher are requested to file their proofs of claim by Aug. 15, 2008, to: Tobias Koster Pilatusstrasse 11 4663 Aarburg Switzerland The company is currently undergoing liquidation in Aarburg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 15, 2008. GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy ---------------------------------------------------------------- Edward Altman, a finance professor at New York University's Stern School of Business, sees a 46% chance that General Motors Corp. and Ford Motor Co. will default within five years, Bloomberg News' Greg Miles and Caroline Salas report. Mr. Altman, in 2005, had said GM had a 47 percent chance of default within five years. Mr. Altman, who created the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television that his model shows that these companies are "on the verge of bankruptcy." Basing on the companies' finances at the end of the first quarter, the Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, he said, according to the report. "Both are in very serious shape and the markets reflect that," Mr. Altman said. GM, though, is in slightly worse condition than Ford, according to him. Ford has said it had access to US$40.6 billion in funds as of March 31, including credit lines, the report noted. But still, according to Mr. Altman, he "would not put money with GM right now because the downside is so great relative to the upside, relative to the yield," according to the report. "Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor," Mr. Altman said referring to GM. The report noted that GM posted a US$38.7 billion loss in 2007, the biggest in its 100-year history, and hasn't posted a profit since 2004. GM is fending off rumors that it could file for bankruptcy. GM Chief Executive Officer Rick Wagoner has assured that the company has the ability to raise cash. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on June 27, 2008, Fitch has downgraded the Issuer Default Rating of General Motors Corporation to 'B-' from 'B', and assigned a Rating Outlook Negative. TCR also reported on June 24, 2008, that DBRS has placed the ratings of General Motors and General Motors of Canada Limited Under Review with Negative Implications. At the same time, Standard & Poor's Ratings Services has placed its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications. GM and its senior unsecured notes continues to carry S&P's B corporate credit ratings. HARE LLC: Deadline to File Proofs of Claim Set August 7 ------------------------------------------------------- Creditors owed money by LLC Hare are requested to file their proofs of claim by Aug. 7, 2008, to: Leimackerstrasse 6 8355 Aadorf Switzerland The company is currently undergoing liquidation in Aadorf. The decision about liquidation was accepted at an extraordinary shareholder's meeting held on June 18, 2008. HB-TECH FUR PROJEKTIERUNG: Creditors' Claim Due by August 7 ----------------------------------------------------------- Creditors owed money by LLC HB-Tech f�r Projektierung are requested to file their proofs of claim by Aug. 7, 2008, to: Andre Hirsch Birchweg 51 8200 Schaffhausen Switzerland The company is currently undergoing liquidation in Neuhausen am Rheinfall. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 23, 2008. INSPIRING SYSTEM: Creditors Have Until Sept. 20 to File Claims -------------------------------------------------------------- Creditors owed money by LLC inspiring system integration are requested to file their proofs of claim by Sept. 20, 2008, to: LLC Eureva Treuhand Liquidator Achslenstrasse 4 9000 St. Gallen Switzerland The company is currently undergoing liquidation in Buchs SG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 18, 2007. IMMOPACK LLC: Deadline to File Proofs of Claim Set August 21 ------------------------------------------------------------ Creditors owed money by LLC immopack are requested to file their proofs of claim by Aug. 21, 2008, to: Ulrich Pack Liquidator Via Val Serris 1 7019 Fidaz Switzerland The company is currently undergoing liquidation in Flims. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 16, 2008. MARKUS WILLI: Creditors Must File Proofs of Claim by Aug. 29 ------------------------------------------------------------ Creditors owed money by LC Markus Willi are requested to file their proofs of claim by Aug. 29, 2008, to: Hauptstrasse 43 9552 Bronchhofen Switzerland The company is currently undergoing liquidation in Bronschhofen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 5, 2008. MIV-IMMOBILIEN LLC: Claims Filing Deadline Set August 7 ------------------------------------------------------- Creditors owed money by LLC MIV-Immobilien are requested to file their proofs of claim by Aug. 7, 2008, to: JSC Treuhand - Fassler & Partner Appenzell Weissbadstrasse 14 9050 Appenzell Switzerland The company is currently undergoing liquidation in Schwende AI. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 23, 2008. RH HUMANITAS: Sept. 30 Set as Deadline to File Proofs of Claim --------------------------------------------------------------- Creditors owed money by LLC RH Humanitas are requested to file their proofs of claim by Sept. 30, 2008, to: Burhan Suna Liquidator Flurweg 9 5034 Suhr Switzerland The company is currently undergoing liquidation in Appenzell. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 7, 2007. ============= U K R A I N E ============= CENTER MEGANOM: Creditors Must File Claims by August 8 ------------------------------------------------------ Creditors of LLC Science-Production Center Meganom (code EDRPOU 24089832) have until Aug. 8, 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 19, 2008. The case is docketed as 15/99-b. The Debtor can be reached at: LLC Science-Production Center Meganom Novokonstantinovskaya Str. 18 04080 Kiev Ukraine ETALON-LIS: Proofs of Claim Filing Deadline Set August 9 -------------------------------------------------------- Creditors of LLC Etalon-LIS (code EDRPOU 31512062) have until Aug. 9, 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 the bankruptcy supervision procedure on the company on March 26, 2008. The case is docketed as 28/118-b. The Debtor can be reached at: LLC Etalon-LIS Proreznaya Str. 4 01034 Kiev Ukraine EXPERIMENTAL WINERY: Proofs of Claim Filing Deadline Set Aug. 9 --------------------------------------------------------------- Creditors of State Enterprise Dniepropetrovsk Experimental Winery Plant (code EDRPOU 00412174) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk has commenced bankruptcy supervision procedure on the company. The case is docketed as B 26/125-08. The Debtor can be reached at: State Enterprise Dniepropetrovsk Experimental Winery Plant Kisnev Str. 47 49074 Dnipropetrovsk Ukraine EXPRESSBUILDING BF: Creditors Must File Claims by August 8 ---------------------------------------------------------- Creditors of LLC Expressbuilding BF (code EDRPOU 34929584) have until Aug. 8, 2008, to submit proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent on June 17, 2008. The case is docketed as 2/110-08-2344. The Debtor can be reached at: LLC Expressbuilding BF Zooparkovaya Str. 25 65009 Odessa Ukraine INDUSTRIAL ASSEMBLY: Proofs of Claim Filing Deadline Set Aug. 9 --------------------------------------------------------------- Creditors of LLC Industrial Assembly (code EDRPOU 31339997) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy supervision procedure on the company on April 14, 2008. The case is docketed as B-50/53-08. The Debtor can be reached at: LLC Industrial Assembly Vorobyov Str. 4a 61057 Kharkov Ukraine MILKA LLC: Proofs of Claim Filing Deadline Set August 9 ------------------------------------------------------- Creditors of LLC Milka (code EDRPOU 38264819) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy supervision procedure on the company. The case is docketed as B 24/179-08. The Debtor can be reached at: LLC Milka Kirilenko Str. 8 Krivoy Rog Dnipropetrovsk Ukraine MINE BUILDING: Creditors Must File Claims by August 9 ----------------------------------------------------- Creditors of LLC Mine Building Assembly (code EDRPOU 24166969) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on June 17, 2008. The case is docketed as 27/23-b. The Debtor can be reached at: LLC Mine Building Assembly Kalinin Str. 51 83087 Donetsk Ukraine PAVLOGRAD MILK: Creditors Must File Claims by August 8 ------------------------------------------------------ Creditors of OJSC Pavlograd Milk Complex (code EDRPOU 0044499) have until Aug. 8, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolven on June 20, 2008. The case is docketed as B 26/128-08. The Debtor can be reached at: OJSC Pavlograd Milk Complex Kharkov Str. 1-v Pavlograd 51400 Dnipropetrovsk Ukraine TISA-95 LLC: Creditors Must File Claims by August 8 --------------------------------------------------- Creditors of LLC Tisa-95 (code EDRPOU 19358738) have until Aug. 8, 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 10, 2008. The case is docketed as 15/787-b. The Debtor can be reached at: LLC Tisa-95 Lomonosov Str. 71-a 03022 Kiev Ukraine UKRAINIAN MTN: Fitch Rates US$2BB LPN Program for Notes 'BB-' ------------------------------------------------------------- Fitch Ratings has assigned Ukrainian MTN Finance Plc's US$2 billion LPN program a final Long-term 'BB-' rating for notes with maturities in excess of one year and a final Short-term 'B' rating for notes with maturities of less than one year. The notes are to be used solely for financing loans to Ukraine's Joint-Stock Commercial Innovation Bank UkrSibbank (UkrSib, Long- term foreign currency Issuer Default 'BB-' with Stable Outlook, Short-term IDR 'B', Long-term local currency IDR 'BB' with Stable Outlook, Individual 'D', Support '3' and National Long- term 'AAA(ukr)' with Stable Outlook). Ukrainian MTN Finance Plc will only pay noteholders principal and interest received from UkrSib. At the same time, Fitch has assigned the program's US$250 million 9.25% Series 1 issue with final maturity in August 2011 a final 'BB-' rating. UkrSib was the third-largest bank in Ukraine by assets at end- first quarter 2008. UkrSib is a universal bank, focusing on corporate, retail and investment banking. The bank operates the fourth-largest nationwide branch network, consisting of over 1,000 banking units and outlets. A controlling 51% stake is held by France-based BNP Paribas (Long-term IDR 'AA' with Stable Outlook, Short-term IDR 'F1+', Individual 'A/B', Support '1' and Support Rating Floor 'A-'), with the remaining 49% controlled by two Ukrainian shareholders, Oleksandr Yaroslavskyy and Ernest Galiyev, who also own several large industrial enterprises in the country. VSEUKRAINSKY AKTSIONERNY: Fitch Holds 'B-' Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has affirmed Ukraine-based Vseukrainsky Aktsionerny Bank's ratings at Long-term Issuer Default 'B-', Short-term IDR 'B', Support '5', Individual 'D/E' and National Long-term 'BBB-(ukr)'. The Outlooks for the Long-term IDR and National Long-term rating are Stable. At the same time, Fitch has affirmed the ratings of Credit Suisse International's US$125 million 10.125% issue of limited recourse loan participation notes due 2010 at Recovery 'RR4' and Long-term 'B-'. The notes were issued solely to finance a loan to VAB. VAB's ratings reflect its small size by international standards, the risks associated with its rapid loan book growth, its still high, albeit declining, business concentrations, significant liquidity risk exposure and weak performance. The ratings also acknowledge the bank's currently reasonable asset quality. VAB's bottom-line performance was negative in 2007, reflecting high operating costs due to the ongoing dynamic retail franchise growth and branch network expansion. The H108 results for local accounts suggest improvement in operating performance, mainly as a result of increased interest rates on new lending, reflecting the general market trends. The loan book has been growing rapidly yoy, reflecting the general sector trend. In H108, the pace of growth slowed down, given recent funding restrictions in the capital and local money markets. Since 2006, VAB's focus has been on expanding its retail lending operations and by end-H108, retail lending comprised about 30% of the loan book. Also, reflecting the bank's aggressive retail deposit collection in the last years, the retail funding share outstripped the share of corporate funding for the first time in 2007. VAB's capitalization has been supported by timely equity injections. At end-H108, the Tier 1 ratio recovered to 14%, mainly reflecting a US$40 million equity injection. Overall, Fitch views VAB's capitalization as only adequate, given its weak internal revenue-generating ability, loan concentrations and potential risks arising from rapid asset growth. VAB ranked 23rd by assets in Ukraine at end-March 2008. The main shareholders are TBIF, a Dutch-based investment company with operations in eastern Europe (48.82%), and a local entrepreneur, Sergei Maximov, and his family (48.65%). =========================== U N I T E D K I N G D O M =========================== C REALISATIONS: Calls In Liquidators from PricewaterhouseCoopers ---------------------------------------------------------------- Ian Christopher Oakley Smith and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint liquidators of C Realisations Ltd. (formerly Chesterton Ltd.) on July 8, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: PricewaterhouseCoopers LLP Hill House Richmond Hill Bournemouth BH2 6HR England DALECLASS LTD: Bank of Scotland Taps Receivers from Kroll ---------------------------------------------------------- Bank of Scotland Plc appointed Fraser J. Gray and Elizabeth G. Mackay of Kroll Ltd. joint administrative receivers of Daleclass Ltd. (Company Number 03107063) on July 14, 2008. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy ------------------------------------------------------------- Edward Altman, a finance professor at New York University's Stern School of Business, sees a 46% chance that General Motors Corp. and Ford Motor Co. will default within five years, Bloomberg News' Greg Miles and Caroline Salas report. Mr. Altman, in 2005, had said GM had a 47 percent chance of default within five years. Mr. Altman, who created the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television that his model shows that these companies are "on the verge of bankruptcy." Basing on the companies' finances at the end of the first quarter, the Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, he said, according to the report. "Both are in very serious shape and the markets reflect that," Mr. Altman said. GM, though, is in slightly worse condition than Ford, according to him. Ford has said it had access to US$40.6 billion in funds as of March 31, including credit lines, the report noted. But still, according to Mr. Altman, he "would not put money with GM right now because the downside is so great relative to the upside, relative to the yield," according to the report. "Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor," Mr. Altman said referring to GM. The report noted that GM posted a US$38.7 billion loss in 2007, the biggest in its 100-year history, and hasn't posted a profit since 2004. GM is fending off rumors that it could file for bankruptcy. GM Chief Executive Officer Rick Wagoner has assured that the company has the ability to raise cash. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. HORNERS MOTOR: Bank of Scotland Taps Receivers from BDO Stoy ------------------------------------------------------------ Bank of Scotland, on July 11, 2008, appointed Dermot Justin Power and Matthew Dunham of BDO Stoy Hayward LLP joint administrative receivers of: -- Horners Motor Group Ltd. (Company Number 03693955); -- Horners Manchester Ltd. (Company Number 00636398); and -- HMG Commercial Ltd. (Company Number 02373171). BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. INTERPUBLIC GROUP: Secures US$335 Mln Revolving Credit Facility --------------------------------------------------------------- The Interpublic Group of Companies Inc. entered into a three- year revolving credit facility with a syndicate of banks. The facility provides for borrowings of up to US$335 million, of which US$200 million is available for the issuance of letters of credit. The facility allows Interpublic to increase the aggregate commitment to a maximum amount of US$485 million if lenders agree to the additional commitments. Interpublic may borrow and may request the issuance of letters of credit in U.S. Dollars and other currencies. Interpublic may use the proceeds of advances under the credit facility for general corporate purposes. The credit agreement will expire on July 18, 2011. Citibank N.A., acted as administrative agent for the lenders, JPMorgan Chase Bank N.A., acted as syndication agent, HSBC Bank USA, National Association and ING Capital LLC acted as co- documentation agents, and Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. acted as joint lead arrangers and joint book managers. A full-text copy of of the credit agreement is available for free at http://ResearchArchives.com/t/s?2fdc About Interpublic Group of Companies Inc. New York-based, Interpublic Group of Companies Inc. (NYSE: IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. The company has a regional office in England. * * * As reported in the Troubled Company Reporter on July 23, 2008, Fitch Ratings assigned a 'BB+' rating to the Interpublic Group of Companies' US$335 million three year revolving credit facility. The rating outlook remains Positive. INTERPUBLIC GROUP: Fitch Rates US$335 Mln Credit Facility at BB+ ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to the Interpublic Group of Companies' US$335 million three year revolving credit facility. The Rating Outlook remains Positive. Fitch's rates IPG as: -- Issuer Default Rating 'BB+'; -- Enhanced Liquidity Facility 'BB+'; -- Credit Facility 'BB+'; -- Senior unsecured notes (including convertibles) 'BB+'; -- Cumulative convertible perpetual preferred stock 'BB-'; Fitch has rated the US$335 million credit facility, due in 2011, 'BB+' as this facility is pari pasu with the existing US$750 million ELF and other unsecured indebtedness. The ELF is expected to remain in place through its expiration in June 2009. In the past five years IPG has only used bank and ELF capacity for letters of credit. The new facility will provide US$200 million in LOC capacity. The establishment of the credit facility is in line with Fitch's expectations that IPG would be proactive in addressing its backup liquidity position in advance of the ELF expiration. The credit facility contains three key covenants which provide limited room for deterioration in operating performance. First, the facility includes a minimum Last Twelve Months EBITDA of $600 million, which excludes up to US$75 million of non-cash impairments. On a last 12 month basis, this covenant is relatively tight (Fitch estimates that all else equal, a 15% decline in EBITDA could position the company to violate the covenant), however Fitch expects further growth in EBITDA through 2008 and 2009 from cost rationalization and operating leverage even amid a weakening economy. The second covenant is a maximum total debt to last 12 month EBITDA of 3.5times in 2008, stepping down to 3.25x in 2009 and to 3.0x in 2010. Based on Fitch calculations, leverage for the last 12 months ended March 31, 2008, was 3.25x. The company should have the flexibility to meet the step downs through EBITDA growth and some modest debt repayment. The third covenant is minimum last 12 month EBITDA to interest coverage of 4.5x. Fitch notes the ratio is calculated on a net basis and includes preferred dividends. Fitch's current estimate is approximately 4.8x, also providing limited room for deterioration. The facility also allows for a restricted payments basket of US$600 million that can be used for capital expenditures, cash acquisitions, share repurchases and dividends on common stock. If leverage is below 2.75x the company has the ability to roll US$200 million of the unused balance to the subsequent year. As of March 31, 2008, IPG's liquidity position is supported by US$1.5 billion in cash and equivalents. Net of US$223 million in LOC, the company had approximately US$527 million available under its US$750 million ELF. Near-term maturities include US$250 million notes due November 2009, and the ELF facility, which expires in June 2009. Separately, Fitch also reiterates that while IPG's 2008 goals of peer level organic growth and operating margin above 8.5% could be attainable, Fitch recognize that there could be some slowdown in client spending in the current economic environment. Taking on low-margin business or cutting staff costs imprudently to meet growth or margin targets may not be best for the longer term health of the company. Fitch is satisfied with the trajectory of progress even if IPG were to fall short of meeting its 2008 goals. The prospect of an economic downturn is factored into our current rating and outlook. MG ROVER: Creditors May Receive Final Payouts in 2010 ----------------------------------------------------- Creditors of MG Rover Group Limited may have to wait until 2010 for final payouts worth up to 6.5 pence in the pound, Jon Griffin of Birmingham Mail reports, citing PWC joint liquidator Rob Hunt. According to Mr. Hunt, Birmingham relates, an additional GBP30 million awaits creditors. He, however, disclosed claims totaling up to GBP500 million remain unresolved. "Significant claims in excess of the values listed in the directors' Statement of Affairs have been received and are still being adjudicated upon, and many potential claims from the U.K. and overseas have not been received," Mr. Hunt was quoted by Birmingham Mail as saying. "I do not expect all asset realisations to be concluded and all claims in the liquidation to be agreed for another 18 months to two years and it might be considerably longer." Meanwhile, Mr. Hunt told Birmingham Mail they have declared a first interim dividend for unsecured creditor claims at a rate of 4.5 pence in the pound, the largest so far, adding "the next, perhaps final, dividend will not be declared for at least another 12 to 18 months." About MG Rover Headquartered at Birmingham, U.K., MG Rover Group Limited -- http://www1.mg-rover.com/-- produced automobiles under the Rover and MG brands, together with engine maker Powertrain Ltd. Previously owned by Phoenix Venture Holdings, the company faced huge losses in recent years, reaching GBP64.1 million in 2004, which were blamed on reduced sales. MG Rover collapsed on April 8, 2005, after a tie-up with China's largest carmaker, Shanghai Automotive Industry Corp., failed to materialize. It appointed Ian Powell, Tony Lomas and Rob Hunt, partners in PricewaterhouseCoopers, as joint administrators. The crisis left 6,000 people jobless, and caused a domino effect on related businesses, particularly in the West Midlands. Days later, eight European subsidiaries -- MG Rover Deutschland GmbH; MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG Rover Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal- Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland Limited -- also fell into administration. MOBILE MATTERS: Manchester Court Orders Winding Up Proceedings -------------------------------------------------------------- The High Court in Manchester has ordered the winding up of Mobile Matters (U.K.) Limited on June 30, 2008. The order came following an investigation by the Companies Investigation Branch of the Insolvency Service. Messrs Gerald Krasner and Julian Pitts of Begbies Traynor of Leeds were appointed Administrators on Feb. 15, 2008. As a result of the Winding-up Order, the Court appointed them as Liquidators. All public inquiries concerning any other affairs of the company should be addressed to: The Official Receiver Public Interest Unit PO Box 326 17 - 21 Chorlton Street Manchester, M60 3ZZ Tel: 0161 934 4182 E-mail: piu.north@insolvency.gsi.gov.uk Mobile Matters (U.K.) Limited in based in Bradford. It operates as an Internet retailer selling mobile phones and airtime contracts. The company offered cashback deals as an incentive to encourage sales to members of the public. NEWARK GROUP: Brings In Liquidators from Ernst & Young ------------------------------------------------------ Elizabeth Anne Bingham and Patrick Joseph Brazzill of Ernst & Young LLP were appointed joint liquidators of Newark Group Ltd. (formerly Foodgarden Ltd.) on July 8, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Newark Group Ltd. c/o Ernst & Young LLP 1 More London Place London SE1 2AF England NORTHERN ROCK: Names Gary Hoffman as CEO Effective October 1 ------------------------------------------------------------ The Board of Northern Rock plc has appointed Gary Hoffman, Group Vice-Chairman of Barclays plc, as new Chief Executive Officer. He will join the Company on Oct. 1, 2008. Gary Hoffman has been with Barclays plc since 1982 and has held a number of senior roles during this time including Barclaycard Chief Executive, Chairman of U.K. Banking and Chairman of Barclaycard. He has been an Executive Director of Barclays plc for the last four years and became Group Vice Chairman in 2006. Further details of his biography are included in the Notes to Editors at the end of this release. Ron Sandler will remain Executive Chairman of the Company until Oct. 1, 2008, at which point he will become Non Executive Chairman. "This is a major step forward for Northern Rock and I am delighted that Gary will join the Board as CEO," Mr. Sandler said. "His skills, experience and overall track record make him an outstanding candidate for the role. Gary further strengthens our Executive team and he will provide the leadership to deliver our business plan and take the Company forward. I very much look forward to working with him." "This is an exciting opportunity for me," Mr. Hoffman said. "Northern Rock enjoys strong local roots and community support, an extensive customer base, and an extremely loyal set of employees who have been through a great deal recently. I am excited by the prospect of leading the Company back to a position of strength, delivering our plan and returning Northern Rock to private ownership as a thriving, stable business." The Board also announces that Andy Kuipers, current CEO, will leave the Company on Aug. 31, 2008. Mr. Sandler said: "Andy became CEO in extremely difficult circumstances and he has performed the role admirably during his time in office. On behalf of all at Northern Rock, I would like to thank him for his outstanding contribution to the Company over 20 years of service. He has my very best wishes for the future." About Northern Rock Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported by the Troubled Company Reporter-Europe on July 8, 2008, Fitch Ratings has withdrawn the ratings of Northern Rock's GBP400 million preference shares. Fitch has also affirmed the 'BB-' ratings of NR's other hybrid Tier 1 and Upper Tier 2 issues and removed the Rating Watch Evolving, where they were originally placed on Feb. 19. On July 7, 2008, TCR-Europe reported that Standard & Poor's Ratings Services lowered its rating on the GBP400 million 6.8509% Tier 1 preference shares to 'D' from 'C'. The rating on the GBP400 million notes issued by Saphir Finance PLC and secured over the Northern Rock preference shares was similarly lowered to 'D' from 'C'. PROFESSIONAL RECRUITMENT: Court Orders Closure of Business ---------------------------------------------------------- The High Court in Manchester has ordered the winding up of Professional Recruitment Direct Limited on June 30, 2008. The order came following an investigation by the Companies Investigation Branch of the Insolvency Service. The Official Receiver was appointed provisional liquidator of the company All public inquiries concerning the affairs of the company should be addressed to: The Official Receiver Public Interest Unit PO Box 326 17 - 21 Chorlton Street Manchester, M60 3ZZ Tel: 0161 934 4182 Email: piu.north@insolvency.gsi.gov.uk Professional Recruitment Direct Limited operates as a publisher of a medical recruitment journal called Professional Recruitment Direct and Midland Recruitment. SIMSHU 2: Claims Filing Period Ends August 20 --------------------------------------------- Creditors of Simshu 2 Ltd. have until Aug. 20, 2008, to send in their full names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any) to: Edward T. Kerr Joint Liquidator PKF (U.K.) LLP Pannell House 159 Charles Street Leicester LE1 1LD England Edward T. Kerr and Ian J. Gould of PKF (U.K.) LLP were appointed joint liquidators of the company by resolutions of members and creditors on July 9, 2008. SPICE INNS: Brings In Joint Administrators from BDO Stoy Hayward ---------------------------------------------------------------- Malcolm Cohen and Geoffrey Stuart Kinlan of BDO Stoy Hayward LLP were appointed joint administrators of Spice Inns Ltd. (Company Number 04616487) on July 11, 2008. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. TALISMAN-6 FINANCE: Fitch Junks Rating on EUR15.48MM Notes ---------------------------------------------------------- Fitch Ratings has downgraded Talisman-6 Finance Plc's Class D, E and F notes due 2016 and affirmed the other classes, as: -- EUR815.41 million Class A (XS0294187306): affirmed at 'AAA'; Outlook Stable -- EUR10,000 Class X (XS0294187645): affirmed at 'AAA'; Outlook Stable -- EUR79.91 million Class B (XS0294187991): affirmed at 'AA'; Outlook Stable -- EUR83.26 million Class C (XS0294188882): affirmed at 'A'; Outlook revised to Negative from Stable -- EUR59.93 million Class D (XS0294189005): downgraded to 'BBB-' from 'BBB'; Outlook Negative -- EUR12.49 million Class E (XS0294189427): downgraded to 'BB' from 'BBB-'; removed from Rating Watch Negative; Negative Outlook assigned -- EUR15.48 million Class F (XS0294189690): downgraded to 'CC' from 'B'; removed from RWN; 'DR5' rating and Negative Outlook assigned The downgrades reflect the latest information received on the defaulted/specially serviced Cherry loan and incorporates Fitch's DR rating approach for tranches downgraded to below 'B'. The 'DR5' rating reflects the expected "below average" recovery prospects on Class F. Following the transfer of the EUR59.3 million Cherry loan into special servicing in May 2008, a new valuation has been conducted for the 11 residential properties located across former East Germany that form the collateral for the loan. The new valuation of EUR50 million is almost 30% lower than the original valuation (EUR70.8 million), resulting in a loan-to- value ratio of approximately 120%, up from 84% at closing. As at April 2008, the liquidity facility has been drawn on the July 2008 interest payment date to ensure full interest payments on the notes The increase of the LTV above 95% triggered an appraisal reduction, limiting the availability of the LF for drawings caused by the Cherry loan. The transaction documents already limit "loan drawings" for Class F to EUR950,000. Although the lower valuation and resulting appraisal reduction have been communicated to the market, Fitch does not expect to receive the requested valuation report. Fitch assumed that the Cherry assets will be sold by final maturity of the loan in October 2013. No credit has been given to potential future rent/value increased as a result of special servicing or market improvements. The expected resolution in Fitch's analysis is a bulk sale of all 11 assets for the current values, with a 5% haircut to address sales costs and certain other expenses. Due to the unavailability of current rent rolls, a EUR0.5 million borrower income has been projected going forward for debt service payments, subject to payment of operating costs and borrower expenses. The restraints for LF drawings have been taken into consideration. The result is an expected EUR13 million loss on the Class F notes. The resulting loss in subordination exposes the Class D and E notes to potential futures deteriorations in the Talisman 6 portfolio which contributed to the downgrade of these two tranches. As mentioned in previous Fitch announcements, two other loans are currently performing below Fitch's expectations: EUR147.2 million Coconut and EUR87.6 million Mango. The transaction remains on priority review and will be reviewed quarterly or upon receipt of relevant information. Any further relevant changes with regard to the pool in general or the Cherry loan in particular will likely result in further announcements. TRUSTGUARD CREDIT: Credit Crunch Spurs Administration ----------------------------------------------------- The directors of Trustguard Credit Services has decided to place the company administration after being hit by the credit crunch, Laura Stavro-Beauchamp writes for Mortgage Strategy. Trustguard, Mortgate Strategy relates, will go into creditor voluntary liquidation. The directors called in Ernst & Young to assist with the liquidation process. Mortgage Strategy adds all of the company's staff have been made redundant. Meanwhile, Trustguard will no longer be accepting any more new business. Em-financial, however, is offering its resources to brokers who have pending business with the company, Mortgage Strategy discloses. Trustguard Credit Services -- http://www.trustguard.co.uk/-- offers a very comprehensive range of mortgage, loan and commercial mortgage products, all of which are fully packaged by the company with full delegated authority from the lender. Its product portfolio covers the entire market, from the blue chip prime end of the market, through to self certification and sub- prime. * Fitch Holds Low-B Support Floor Ratings on Bldg. Societies ------------------------------------------------------------ Fitch Ratings has downgraded Principality Building Society's and West Bromwich Building Society's Long-term Issuer Default ratings to 'A-' from 'A' and Individual ratings to 'B/C' from 'B'. The agency has also downgraded Yorkshire Building Society's Long-term IDR to 'A' from 'A+'. This rating action has no impact on the 'AAA' rating of the covered bonds of YBS. Fitch has also downgraded Britannia Building Society's Individual rating to 'B/C' from 'B' and revised the Outlook of its Long-term IDR of 'A' to Negative from Stable. The Short-term ratings of these four societies are affirmed at 'F1'. Fitch has also affirmed the ratings of Chelsea Building Society, Coventry Building Society, Leeds Building Society, Newcastle Building Society and Skipton Building Society. The ratings are detailed below. The rating actions reflect Fitch's view that the fall in U.K. house prices and slowing domestic economy are likely to lead to a tougher operating environment for building societies. Fitch considers that, from an unsustainably low level, loan impairment charges will rise, dampening operating profit. Fitch believes the most vulnerable building societies are those that have the greatest exposure to specialist mortgages, high LTV residential mortgage loans, concentration in commercial mortgage lending and recent rapid loan growth. The agency acknowledges that building societies' loan portfolios benefit from being secured on residential housing, a traditionally safe form of lending. The majority of building society funding comes from retail savers, a traditionally stable form of funding. In most of the building societies included in this review, capital is at least reasonably strong and is not a cause of concern in any. The downgrade of PBS reflects the greater risks inherent in its second charge lending business, as well as a decline in opportunities to generate non-interest income from new lending or its small estate agency subsidiary. Although arrears to date have not deteriorated significantly in the second charge mortgage loan portfolio, Fitch considers that the probability of a significant slowdown in the U.K. housing market has risen. Therefore, in addition to the risk of increased defaults arising from the wider economic slowdown, loss severities are also likely to be worse than previously expected. Some concentration in the commercial book continues, which increases the society's credit risk. The Short-term 'F1' rating is supported by PBS's strong retail funding franchise. The downgrade of WBBS reflects the rapid growth in the group's buy to let and commercial lending portfolios over the past three years. Combined with strong loan growth in WBBS's overall mortgage book, as well as a weakening U.K. economy and housing market, Fitch considers that risks in the society have risen. The ratings also reflect the society's good record of profitability. However, Fitch believes that this profitability is likely to come under pressure if impairment charges increase, while income generation from commercial lending is likely to be limited and the fair value of the group's housing portfolio could suffer if house prices suffer a further material decline. The Short-term 'F1' rating is supported by WBBS's strong retail funding franchise. The downgrade of YBS reflects the increased risks represented by higher loan-to-value lending and recent growth in their higher risk broker-introduced business. Probable growth in the group's loan impairment charge, in addition to possible further write- downs of structured investments, are likely to result in profitability that would be small for an institution of this size. The Stable Outlook reflects its good wholesale funding franchise and strong capital, which, although not enough to justify a higher rating on their own, should enable YBS to withstand a moderate deterioration in performance. The Negative Outlook for BBS's Long-term IDR and the downgrade of the society's Individual rating reflect deteriorating asset quality in its subsidiary Britannia Capital Investment Group's mortgage book. The group's acquired residential mortgage books are also demonstrating higher levels of arrears, but these levels fall within projections made by management at the time of purchase. The larger proportion of first time buyers and higher LTV lending in BCIG also contribute to higher credit risk. Although the society expects to report improvement in its pre- impairment operating profit for 2008, operating profit is likely to be weakened by larger loan impairment charges. Management tightened underwriting criteria considerably in H107 and therefore expects the negative impact of higher impairment charges to be contained. The ratings also consider BBS's good liquidity and funding position and its franchise. BBS could suffer a downgrade of its Long-term IDR if, in approximately the next 18 to 24 months, asset quality deteriorates and loan impairment charges erode operating profit to a level weaker than its 'A' rated peers. The rating actions are: Principality Building Society: -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: downgraded to 'B/C' from 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: downgraded to 'A' from 'A+' -- Subordinated notes and permanent interest bearing shares: downgraded to 'BBB+' from 'A-' West Bromwich Building Society: -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: downgraded to 'B/C' from 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: downgraded to 'A' from 'A+' -- Subordinated notes and permanent interest bearing shares: downgraded to 'BBB+' from 'A-' Yorkshire Building Society: -- Long-term IDR: downgraded to 'A' from 'A+'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- Senior unsecured notes: downgraded to 'A+' from 'AA-' -- Subordinated notes and permanent interest bearing shares: downgraded to 'A-' from 'A' Britannia Building Society: -- Long-term IDR: affirmed at 'A'; Outlook revised to Negative from Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: downgraded to 'B/C' from 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes and permanent interest bearing shares: affirmed at 'A-' Chelsea Building Society: -- Long-term IDR: affirmed at 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes: affirmed at 'A-' Coventry Building Society: -- Long-term IDR: affirmed at 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes and permanent interest bearing shares: affirmed at 'A-' Leeds Building Society: -- Long-term IDR: affirmed at 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes and permanent interest bearing shares: affirmed at 'A-' Newcastle Building Society: -- Long-term IDR: affirmed at 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes and permanent interest bearing shares: affirmed at 'A-' Skipton Building Society: -- Long-term IDR: affirmed at 'A'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: affirmed at 'B' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB' -- Senior unsecured notes: affirmed at 'A+' -- Subordinated notes and permanent interest bearing shares: affirmed at 'A-' * Fitch: Some UK Homebuilders Face Default Risk in 12 Months ------------------------------------------------------------ Fitch Ratings says it believes a significant proportion of U.K. leveraged buy-out house-builders face considerable default risk in the next 12 months, as a result of the sharp downturn in the U.K. housing market. "While much media attention has focused on the recent difficulties of large, high-profile builders, such as Barratt Developments plc and Taylor Wimpey plc, we believe the most at risk are LBO house-builders that tend to be privately-owned mid- tier players operating in regional or niche markets, with high levels of debt," says Ewan Macaulay, Associate Director in Fitch's Corporates team. Like the rest of the U.K. house-building industry, these builders are suffering from an unprecedented drop in U.K. mortgage lending and a weakening economy. This has led to a severe drop in sales and earnings, with some LBOs now more than 50% below their FY08 base case forecasts for EBITDA generation. Generally, most house-builders tend to benefit from a reasonably flexible business model, which allows them to generate cash during a downturn by halting land-buying - often a house- builder's single-largest cost - and mothballing new projects and reducing build costs on current projects. However, LBOs tend to have less flexibility than their peers. Unlike non-leveraged builders, the high level of debt at LBOs significantly reduces financial flexibility due to onerous interest payments and debt amortizations, although more recent LBOs benefit from back-ended debt schedules. Furthermore, LBOs often have more restricted access to their revolving credit facilities than non-leveraged builders. These RCFs are core to a house-builder's operations, given that they are used to fund day-to-day operational costs. Restrictions on these RCFs may come in the form of clean-down provisions, which force the company to repay drawings within a short period of time, or contractual clauses that limit the amount of debt that can be drawn relative to the underlying value of the company's assets. However, the value of builders' land banks - normally their single-largest asset - has been decreasing as land prices fall and builders choose not to replace consumed land with new land. As a result, some LBOs are now facing the prospect of severely reduced limits on their RCFs, which in turn reduces the company's access to all-important liquidity at a time when they need this liquidity to offset weaker operational cash flows. This therefore leaves some LBOs with the prospect of running out of cash. In addition, some LBOs have either recently breached - or will soon breach - covenants on their debt. This will likely trigger the re-negotiation of the problematic covenants with their lenders, maybe facilitated by a cash injection from private equity sponsors, or possibly consensual debt-for-equity swaps. However, this may only materialize for those credits that are deemed robust enough to survive a prolonged downturn. It is also possible that lenders -- particularly those who are already highly exposed to the U.K. housing market -- will attempt to recover their investment by forcing the company into liquidation. From a broader perspective, the difficulties being faced by highly-leveraged house-builders are likely to have a negative knock-on effect on the wider U.K. house-building market. Struggling LBOs may choose to aggressively discount their properties for-sale in an effort to improve short-term cash flows, forcing competitors to follow suit and therefore compounding price falls. Additionally, the lack of land buying and the possibility of distressed land sales by LBOs will further dampen land prices, in turn causing further erosion in the value of land banks across the sector. Fitch currently rates four leveraged U.K. house-builders on a non-public 'shadow' basis. Based on the latest set of private information, these builders have combined sales of GBP4.4 billion, EBITDA of GBP0.8 billion and total debt of GBP3.3 billion. * Fitch: UK Credit Cards ABS Deal Delay Won't Affect Ratings ------------------------------------------------------------ Fitch Ratings says a delay by U.K. credit card ABS transactions to the start of their principal accumulation periods will not typically impact the notes' ratings. An accumulation period is designed to allow the build-up of a principal reserve to redeem the notes on their scheduled redemption date. In a typical 12-month controlled accumulation period, one twelfth of the corresponding note amount is trapped each month from principal collections. Most notes issued from U.K. credit card ABS transactions are structured with a revolving period followed by a controlled accumulation period, lasting until the scheduled redemption date. The scheduled redemption date is then followed by the legal final maturity date (usually after a further two years). Fitch notes that because its ratings of U.K. credit card ABS notes address the likelihood of payment of interest on a timely basis and principal by the legal final maturity date, a failure to redeem the notes on the scheduled amortization date in itself will not necessarily affect the ratings, provided that Fitch is confident the notes will be repaid by the final legal maturity date. A number of Fitch-rated transactions are currently in, or approaching, a scheduled accumulation period and the agency has taken this opportunity to highlight the above structural feature in response to market interest. Based on the current monthly payment rate performance, most trusts are in a position where they have the option to delay the commencement of controlled accumulation periods as the principal required to repay the notes is expected to be accumulated in a shorter time period than that originally scheduled. Fitch also highlights that, in addition to utilizing its own share of principal collections, a series may, to redeem its notes, use principal collections allocated to the notes of other series within a master trust, to the extent that such series are not in an accumulation or amortization period themselves. In the event that the accumulation period generates insufficient principal collections to redeem the relevant notes on the scheduled redemption date, then the series switches into a rapid amortization. During this rapid amortization phase, all amounts previously accumulated plus additional principal collections are utilized on a pass- through basis to redeem the notes sequentially. Given current levels of MPR, Fitch does not expect any series to miss their scheduled redemption dates. Although, Fitch believes MPR levels could come under pressure from any further deterioration in the UK economic environment, the agency does not anticipate rating actions as a result of issuers electing to delay the commencement of accumulation periods. * Fitch Says Negative Rating Trend in Global Banks Persists ----------------------------------------------------------- Fitch Ratings expects further negative rating actions on banks in the coming months, as the operating environment remains tough and the global economy continues to slow. There were more than twice as many negative rating actions taken during Q208 than positive actions, intensifying the negative trend already experienced in the previous two quarters. In its latest quarterly report on "Global Bank Rating Trends", Fitch says the number of Positive Outlooks compared to Negative Outlooks assigned to bank ratings has steadily fallen over the past 15 months, with the number of Negative Outlooks surpassing that of Positive Outlooks at end-June 2008. Although the immediate liquidity risks in the global banking system have been partly alleviated by measures taken by central banks, wider concerns about the extent to which global credit market conditions are likely to feed through to the real economies of developed countries intensified in second quarter 2008. "Banks in developed markets now face the prospect of increased credit costs on top of higher funding costs," says Gerry Rawcliffe, Managing Director and Group Credit Officer in Fitch's Financial Institutions Group. "Furthermore, Fitch does not rule out further write-downs of structured products, including write-downs related to financial guarantors." During Q208 there were 69 negative rating actions on banks as opposed to 31 positive actions. Although there were still more positive actions in emerging markets than negative, there were significantly more negative actions than positive actions in developed markets. Rating downgrades during the quarter were predominantly in Europe, although there were some further downgrades in the developed Americas as well. Having peaked in Q107 at five to one, at end-second quarter 2008 the number of Positive Outlooks was surpassed by the number of Negative Outlooks for the first time since the Global Bank Rating Trends report series began in 2006. The increase in Negative Outlooks largely related to banks in developed Europe and developed Americas. Despite this negative shift in Outlooks, around 80% of Fitch's bank ratings still have Stable Outlooks. * Fitch Says EC's Proposed Restrictions Need More Definition ------------------------------------------------------------ Fitch Ratings has proposed investment restrictions for European banks in relation to structured finance have the potential to resolve concerns regarding an apparent misalignment of interests between originators and bank investors. However, the agency believes the European Commission's proposals need further development to effectively address this perceived market failing. Moreover, in addressing this single issue, other unintended problems for financial markets could be created. On April 16, 2008, the EC published a consultation paper with a number of proposed changes to the Capital Requirements Directive, some of which are intended to address perceived failings in the structured finance markets. Specifically, the EC has proposed restricting European banks from investing in tranches of transferred credit risk unless the relevant originator, arranger or manager/servicer has retained at least a 10% interest in those tranches. "Enhanced transparency regarding originator/sponsor retained interests could allow for better evaluation of this risk by investors," says Stuart Jennings, Risk Officer for EMEA structured finance at Fitch. "However, the EC's proposals in their current form could prove overly prescriptive and have the potential to put European banks at a competitive disadvantage as investors. Furthermore, if implemented in their current form, the cost of the proposals could render the economics of some European structured finance transactions unviable. This could limit available funding options for European originators." Fitch believes the practical aspects of application also require further definition, particularly with regard to how retained interests would be monitored, as well as the remedies for breach and the extent of intended reach. "Should these proposals become law, it could encourage European banks to seek new off balance sheet investment techniques to circumvent the rule. Off balance sheet investment structures were widely believed to have amplified the impact of the U.S. subprime performance issues," says Mr. Jennings. In a report, Fitch outlines the potential impact of these proposals and the questions that might arise upon practical application. The report, entitled "A Review of Proposed Changes to the European Capital Requirements Directive". The agency also recently published its own consultation paper focusing on increased transparency in this area, with respect to retained securitization positions by key transaction parties. The report, entitled "Exposure Draft: Retaining Equity Piece Risk - Enhancing Transparency". * Ernst & Young ITEM Expects UK Economy Inflation to Remain High ---------------------------------------------------------------- The Ernst & Young ITEM Club summer forecast released sees an economy that will struggle to avoid recession in 2009 with predicted GDP growth of 1.0%. ITEM expects inflation to remain above the target range of 1 to 3% for the next 12 months and there will also be a substantial increase in the numbers of unemployed. "Both on the high street and in the housing market it is going to get a great deal worse before it gets better," Peter Spencer, Chief Economist to the Ernst & Young ITEM Club says. We have already seen a housing crisis that has morphed from a credit crunch to a general collapse in confidence as prices have tumbled. Our worry is that without the usual medication from the Bank of England - which would have nasty inflationary side effects in this environment - the consumer will follow suit, moving from their current state of denial into a state of despair." Consumers can no longer defy gravity As ITEM has consistently warned, both consumer and the Government have been living beyond their means for the last few years, overborrowing on credit. Against the current bleak background, consumer spending is unlikely to defy gravity for any longer, while the public finances face a similar strain. "Households will be lucky to see real disposable income growth of 1% this year, with perhaps 1�% in 2009," Spencer explains. With credit repayments becoming more onerous, the forecast shows consumer spending growing by just 0.2% next year. Rising inflation, the limited availability of credit and sharp reversals in the housing and equity markets mean that consumers are coming under increasing pressure." ITEM predicts some tough months ahead even if the oil price comes off its record highs. The summer forecast expects oil prices to peak at US$150 a barrel this summer, before easing back towards US$100 over the next two years. "Consumers will inevitably cut back on non-essential spending in the face of the impact of rising food and energy prices on their discretionary incomes," Spencer elaborates. Many parts of the leisure sector will be particularly hard hit." Nor is there likely to be much relief for the consumer from an increasingly squeezed public purse. "The GBP2.7 billion the Chancellor provided for those losing out from the removal of the 10p tax band is surely the last pain relief he can afford," Spencer explains. And the free fall in housing market will continue Credit markets in the developed financial markets are still showing little sign of loosening and continue to impact on the increased cost and restricted availability of mortgage finance. In light of the deteriorating economic environment, ITEM expects that house prices have significantly further to fall. "We expect prices to drop by about 10% through 2008 and a further 6% through 2009," Spencer says. At the same time, we expect housing turnover to fall by about 35% this year and a further 10% in 2010, with all the usual effects on the associated expenditures. It is worth emphasizing, however, that the correction in house prices is likely to be far greater outside London." But the slowdown could pave the way for a rate cut this winter Although the risk of a technical recession in the U.K. has risen significantly, the financial pressures facing households and companies are still not as severe as those that preceded the early-1990s recession. This is partly because interest rates remain historically low; but also because the labor market is more flexible and companies are generally in a stronger position. With consumer spending falling off sharply, ITEM expects a slowdown in the high street to pave the way for a rate cut, possibly as early as November. "The weakening economy should allow the MPC to cut base rates this winter without running the risk of inflationary second- round effects," Spencer explains. We expect base rates to fall to 4% by the end of 2009. This will help to put a cushion under the level of demand in the economy and set the scene for a recovery in 2010." Government must keep a lid on public sector pay rises ITEM is urging the Government to stand firm on excessive public sector pay demands, which could put severe pressure on any attempts to dampen down inflation and potentially blow any hopes of a medium term recovery out of the water. "Inflationary expectations are rising in line with the headline inflation figures and there is an increasing risk of a significant push for higher wages to offset the price increases that families are facing," Spencer explains. This risk is most acute in the public sector, where wage increases have been held below those in the private sector and the cost of living for nearly two years now. But we don't think the Government will cave in to the public sector unions. That would mean higher interest rates and a recession, which could cost them the election." Decline in immigration will ease unemployment but still substantial rises ITEM is forecasting a rise in the overall numbers of unemployed but it remains a modest jump particularly in comparison with previous downturns. A major contributory factor is that poorer U.K. employment and economic prospects as well as a weaker exchange rate are already causing reversals in migration flows. "The recent immigration flows will reverse as employment prospects deteriorate -- indeed there are already signs of that happening -� helping to reduce the impact of job losses on the unemployment figures," Spencer explains. Nevertheless, we expect unemployment (on the Labour Force Survey measure) to increase from the low point of 1.6 million reached at the end of last year, topping the 2 million mark by 2010." Company finances robust and exporters relatively strong Whilst the consumer will feel the pain over the next 18 months, corporate Britain is better placed to weather the downturn. According to ITEM there is unlikely to be anything like the degree of retrenchment by the company sector that triggered the recessions of the early 1980s and 1990s. While some sectors - most obviously housebuilding- are facing a sharp downturn, ITEM expects export growth to pick up from 2% this year to over 5% next year in response to the recent fall in the exchange rate, offering plenty of opportunities for others. Leading the way in energy efficiency? Longer term the recent high oil price does have a silver lining even if it is causing immediate pain. Britain is relatively energy rich and efficient. "The demand for oil will moderate over the next year as fuel and oil prices remain high," Spencer concludes. As a result, the average UK household will look to reduce its energy consumption and will unlock savings from energy and petrol bills if they are prepared to do so. The Friday night treat will no longer entail a drive to the chippie but perhaps, a leisurely walk to an up- market Chinese take-away." * Credit Crunch Hits UK Companies Harder, a KPMG Survey Says ------------------------------------------------------------ The impact of the credit crunch is hitting U.K.-headquartered companies much harder than their U.S. peers, according a new survey by professional services firm KPMG. Far more U.K. companies are experiencing delayed payments from customers, reduced access to credit, increased financing costs and suppliers demanding earlier payment, compared to their US counterparts. "Given that the credit crunch began in the U.S., it is interesting - and perhaps surprising - to see that U.K. companies are feeling the pinch more than their transatlantic counterparts," said Andrew Ashby, Director in KPMG Advisory. "This may be because stakeholders such as banks, shareholders and non-executive directors are being more proactive forcing U.K. companies to take action before they get into difficulty." In conjunction with CFO Research Services, KPMG asked 342 companies with revenues ranging from GBP250 million to more than GBP20 billion about how the credit crisis was affecting their management of working capital. When asked how companies plan to address these cash flow challenges, 49 per cent said they plan to negotiate longer supplier payment terms, while 46 per cent said they would tighten credit lines to customers. But such traditional, knee-jerk responses will only make matters worse for all but a handful of firms. "Adopting the same old blinkered approach of squeezing your suppliers and delaying payments is a zero sum game where only few winners will emerge," warned Andrew Ashby. "Companies need to be more focused on gaining improved visibility and control of cash and to work smarter across the supply chain to create win-win opportunities that reduce the cash cycle for all participants." The survey found that increased pressure from stakeholders such as lenders, investors and analysts was seen as the greatest impact of the current credit environment with 76 percent of U.K. respondents saying its impact was high, compared to just 23 percent among US companies. Similarly, far more U.K. companies (75 percent) are experiencing delayed payment from customers than their U.S. peers (23 percent); reduced access to credit -� 75 percent in the U.K., only 14 percent in the U.S.; and increased cost of credit � 71 percent in the U.K., versus 19 percent in the U.S. Suppliers are also demanding early payment, according to 73 per cent of U.K. respondents, compared to just 12 per cent of respondents in the U.S. And although 96 percent of companies use some form of cash flow forecasting, only 10 percent say they are accurate. The news is worse for U.K. companies, with only a quarter of companies achieving plus/minus ten percent forecast accuracy compared to 64 percent of U.S. companies. "In the current environment of high debt multiples and restricted access to new credit, accurate visibility of when and how much cash the business will generate is critical," Andrew Ashby added. Other key findings include: * 88 percent of U.K. companies expect having to delay or revisit refinancing plans in the next 24 months. * 46 percent of respondents are worried the economic environment will result in increased exposure to bad debt. * Working capital performance at UK companies has faired much better over the last three years and is forecast to maintain the same trend of flat or improving. This compares with 51 percent of US companies that forecast a deteriorating over the next three years in their working capital performance. * 84 percent describe cash management as a top tier priority but 25 percent still don't link executive compensation to cash flow targets. One bright spot from the survey is that just four per cent of UK firms plan to reduce capital expenditure over the next two years as a result of tightening credit market � in the US the figure is 50 percent. "By gaining visibility and control of cash flows, companies will be able to identify the areas where they can generate more cash," Andrew Ashby concluded. While working capital tends to be a large area of opportunity companies should also look at cash generation from tax, treasury and other assets on the balance sheet. To drive sustainable improvement, leading companies embed cash management into the strategic decision- making process." "One way to do this is for companies to incentivize executives to manage cash flow better. Those that do have fared better over the past three years and expect to suffer less in the future." * BOOK REVIEW: Corporate Players: Designs for Working ----------------------------------------------------- Author: Robert W. Keidel Publisher: Beard Books Paperback: 276 pages List Price: US$34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587982587/internetbankrupt In American business, the metaphor of the sports team is commonly used for business groups of all sizes -- from ad hoc teams of a few members that deal with temporary problems to groups of executive managers who are responsible for long-term corporate survival and the profitability of an entire organization. The sports team is a favored metaphor because sports bring individuals with different talents and different responsibilities together to perform a particular activity and pursue a common objective. Within its framework, sports also allow for the outstanding performance of particular individuals and recognition of that performance. The sports tem metaphor has become so common in business and so routinely applied to business teams of all sorts and sizes that little thought is usually given to its specifics. Corporate Players -- Designs for Working and Winning Together takes a close look at what makes a sports team function effectively and win. The author then applies these observations to develop a plan for those in the corporate world to be as successful as those in the sports world. While a reprint of a 1988 book, the lessons in this book are timeless. Keidel identifies three main types of teams found in business: autonomy, control and cooperation. The author relates each to a particular type of sports team: autonomy for baseball, control for football and cooperation for basketball. A chart compares differences among the three with respect to organizational strategy, organizational structure, and organizational style. For instance, the organizational strategy for autonomy in base ball is "adding value through star performers"; while the organizational strategy for cooperation in basketball is "innovating by combining resources in novel ways." With a sharp analytic eye and decades of experience in different aspects of business, including academic and government positions, Keidel delves into the specifics of business groups as sports teams. A fundamental point often overlooked by businesspersons is that teams in different sports are different in significant ways. An understanding of these differences is crucial for executives, managers, and consultants who are responsible for conceptualizing a team in relation to a particular business matter and then bringing together a team of individuals. As such, executives, managers and consultants have roles similar to a general manager and coach of a sports team. In some case, they may also have the role of a player on the team. This chart and other aids, together with the author's engaging commentary and enlightening analyses, will help business leaders select the right personnel, assemble a team capable of performing the task at hand, and then coordinate all of the players to accomplish the desired objective. Robert W. Keidel has a Ph.D. from Wharton, and has also been a Senior Fellow at this top business school. An author of three other books and many articles, he teaches courses in business strategy, technology, and organization at Drexel University's Lebow College of Business. Robert Keidel Associates is his business consulting firm. ********* 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. Zora Jayda Zerrudo Sala, Pius Xerxes V. Tovilla, Joy A. Agravante, Julybien D. Atadero and Peter A. Chapman, 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 * * *