/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081009.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 Thursday, October 9, 2008, Vol. 9, No. 201 Headlines A U S T R I A ELA LLC: Claims Registration Period Ends October 28 MALEC LLC: Claims Registration Period Ends October 27 GRUENZWEIL LLC: Claims Registration Period Ends October 28 B E L G I U M FORTIS: Moody's Cuts Sub. and Preferred Guarantees Ratings to Ba1 B U L G A R I A * BULGARIA: Small Construction Firms to Go Bust, BIA Chair Says F R A N C E NATIXIS SA: Largest Shareholders in Merger Talks SYNTAX-BRILLIAN: Vivitar's Paris and UK Offices Cease Trading G E R M A N Y A & R BETRIEBS: Claims Registration Period Ends October 13 AUGUSTINEN GRUNDSTUECKS: Creditors' Meeting Set October 15 BAUGESCHAFT VON: Claims Registration Period Ends October 15 CAFE PLATANE: Claims Registration Period Ends October 12 CCS DRUCK: Claims Registration Period Ends October 15 ESCADA AG: Moody's Downgrades Rating on EUR200 Mil. Notes to B3 GENERAL MOTORS: Opel to Cut Production in Europe by 40,000 Cars HSC HANDELSSYSTEME: Claims Registration Period Ends October 15 KAPELLA DACHDECKEREI: Creditors Meeting Slated for October 13 KIENITZER DACHBAU: Claims Registration Period Ends October 15 LECKERHOELKEN BETRIEBS: Claims Registration Period Ends Oct. 15 LEIN TECH: Creditors Meeting Slated for October 13 NOVAFORM KUECHEN: Claims Registration Period Ends Oct. 13 PICABELLO GMBH: Claims Registration Period Ends Oct. 13 PIZZERIA CAPRICCIO: Claims Registration Period Ends Oct. 13 PRODUCTION UND ASSEMBLING: Claims Registration Ends Oct. 12 R + S BAU: Claims Registration Period Ends October 13 SCHOEN-HAUS GMBH: Claims Registration Period Ends Oct. 13 * GERMANY: Rejection of Banks' Rescue Fund Gets ECB's Support H U N G A R Y PROPEX INC: Committee Sued BNP Paribas, et al., Over Demise PROPEX INC: Wants to Hire PricewaterhouseCoopers as Accountants I C E L A N D GLITNIR BANKI: IFSA Takes Control of Operations GLITNIR BANK: S&P Cuts Counterparty Credit Rating to 'CCC' ICESAVE: To Go Into Insolvency Proceedings in Iceland LANDSBANKI: In Receivership; IFSA Takes Control of Operations LANDSBANKI: Chancellor to Freeze Assets in the UK * S&P Revises Iceland's BICRA to Group 8 from Group 5 I R E L A N D BIRCHPORT: Seeks Examinership Following Downturn in Pub Business CAPPOQUIN CHICKEN: Workers Take Deal; 40 Lost Jobs I T A L Y ALITALIA SPA: Lufthansa May Get Minority Stake in Airline K A Z A K H S T A N ADIANA MACHINERY: Creditors Must File Claims by November 25 BIOS GOLD: Claims Deadline Slated for November 25 KAMBAR & A: Claims Filing Period Ends November 21 KAZSTROY-2005 LLP: Creditors' Claims Due on November 21 MEDIUS-M LLP: Claims Registration Ends November 21 ONTUSTIK-OYU LLP: Creditors Must File Claims by November 25 RRC BUSINESS: Claims Deadline Slated for November 25 TRIO INTERNATIONAL: Claims Filing Period Ends November 25 ULDANA LLP: Creditors' Claims Due on November 25 VOSTOK STROY: Claims Registration Ends November 18 K Y R G Y Z S T A N JALALABAT TRANS: Creditors Must File Claims by November 12 N E T H E R L A N D S FORTIS: Moody's Cuts Sub. and Preferred Guarantees Ratings to Ba1 N O R W A Y RADIANT: Completes US$1MM Settlement with Innovations Norway P O L A N D GENERAL MOTORS: Opel to Cut Production in Europe by 40,000 Cars STOCZNIA GDYNIA: Fears Stir Up Over Rejected Rescue R U S S I A BANK SOYUZ: S&P Places 'B' Counterparty Credit Rating On WatchNeg ELEMENT LEASING: S&P Puts B Counterparty Credit Rating On WatchNeg NIZHNETAGILSKOE FREIGHT: Creditors Must File Claims by Oct. 26 SIB-LES-PERERABOTKA: Creditors Must File Claims by October 26 SOUTHERN TELECOM: S&P Shifts Outlook to Stable; Retains 'B' Rating SSMO LENSPECSMU: S&P Revises Outlook to Stable; Affirms 'B' Rating TMK OAO: S&P Cuts Long-Term Corporate Credit Rating to 'B+' TRANSOIL COMPANY: Creditors Must File Claims by October 26 URALSVYAZINFORM OJSC: S&P Shifts Outlook to Neg.; Holds BB- Rating URENSKIY FLAX: Creditors Must File Claims by October 26 VOLGATELECOM OJSC: S&P Revises Outlook to Neg.; Keeps 'BB-' Rating YAMAL-PETROIL CJSC: Creditors Must File Claims by October 26 S P A I N * SPAIN: To Raise Guarantees on Bank Deposits S W E D E N VOLVO CAR: Mulls Additional 4,000 Job Cuts on Slumping Car Sector S W I T Z E R L A N D AMC MANAGEMENT: Creditors Must File Proofs of Claim by Oct. 24 DANU GUDEL: Deadline to File Proofs of Claim Set Oct. 24 FT CONSULT: Creditors Have Until Oct. 23 to File Claims G24SOLUTIONS LLC: Proofs of Claim Filing Deadline is Oct. 24 GENERAL MOTORS: High Demand Cues Share Trading Blackout on Workers SENN HOSPITALITY: Creditors' Proofs of Claim Due by Oct. 23 STUTZ FINANZ: Oct. 25 Set as Deadline to File Claims SUBCONTI TRADE: Creditors Must File Proofs of Claim by Oct. 25 YANGZOM JSC: Deadline to File Proofs of Claim Set Oct. 23 U K R A I N E ANTEY LLC: Creditors Must File Claims by October 12 CONCRETE CONSTRUCTIONS 5: Creditors Must File Claims by Oct. 12 DEEP LLC: Creditors Must File Claims by October 12 KOTOVSK BREADRECEIVING: Creditors Must File Claims by October 12 KRONPACKSERVICE LLC: Creditors Must File Claims by October 12 POLTAVA-DILO LTD: Creditors Must File Claims by October 11 SANATORIUM-PREVENTORIUM YUBILEYNY: Claims Filing Ends October 11 SPARTAK OJSC: Creditors Must File Claims by October 12 U N I T E D K I N G D O M ABBOTTS CREATIVE: Taps BDO Stoy to Administer Assets AMERICAN INT'L: US$85BB Gov't Loan Is Bad Deal, Says Former CEO AMERICAN INT'L: S&P Revises CreditWatch to Neg. from Developing AVENT ENGINEERING: Appoints Joint Administrators from BDO Stoy BALLY TECH: Fitch Assigns 'BB+' Rating on US$300MM Facility BATE GROUP: Brings in Joint Administrators from BDO Stoy BETTERVIEW WINDOWS: Appoints Joint Administrators from KPMG ESDALE TOOLING: Taps Tenon Recovery as Joint Administrators FOURTH MARKET: Calls in Joint Administrators from Mazars HERITABLE: In Default; Deposit Business Transferred to ING ICESAVE: To Go Into Insolvency Proceedings in Iceland KAUPTHING: In Default; Deposit Business Transferred to ING LANDSBANKI: Chancellor to Freeze Assets in the UK LANDSBANKI GUERNSEY: Goes Into Administration LEHMAN BROTHERS: Collapse Causes Lock Up of London-Held Assets LSUK: Goes Into Administration; 600 Jobs at Risk MFI RETAIL: Puts Units Into Administration; Completes MBO MKM LONGBOAT: Shuts Down on Poor Performance and Lehman's Collapse PLASMON PLC: Appoints Joint Administrators from Kroll RMAC SECURITIES: S&P Cuts Ratings on Class B1a and B1c Notes to B+ SYNTAX-BRILLIAN: Vivitar's UK and Paris Offices Cease Trading W.J. OLIVER: Forced Into Receivership by Wet Summer * British Government Unveils Bank Rescue Package * ENGLAND: Banks Squeeze on Household Credit Due to Falling Prices * Europe's Rules on Pre-Pack Administrations to be Tightened * EU Commission Tightens Capital Requirements Directive * Europe to Dive Deeper in Crisis than the United States * S&P Probes European Local & Regional Government Risk Indicators * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= ELA LLC: Claims Registration Period Ends October 28 --------------------------------------------------- Creditors owed money by LLC ELA have until Oct. 28, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Sigrun Teufer-Peyrl Pfarrgasse 20 4240 Freistadt Austria Tel: 07942/7 5151 Fax: 07942/7 5151-9 E-Mail: ra.peyrl@epnet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 11, 2008, for the examination of claims at: The Land Court of Linz Hall 522 5th Floor Linz Austria Headquartered in Aigen im Muehlkreis, Austria, the Debtor declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 17 S 35/08h). Dr. Gunter Peyrl represents Mag. Teufer-Peyrl in the bankruptcy proceedings. MALEC LLC: Claims Registration Period Ends October 27 ----------------------------------------------------- Creditors owed money by LLC Malec have until Oct. 27, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Katharina Widhalm-Budak Favoritenstrasse 22/12a 1040 Vienna Autria Tel: 504 64 08 Fax: 504 64 08-22 E-mail: widhalm-budak@mitrecht.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Nov. 10, 2008, for the examination of claims at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Sept. 16, 2008, (Bankr. Case No. 3 S 107/08t). Dr. Andrea Simma represents Dr. Widhalm-Budak in the bankruptcy proceedings. GRUENZWEIL LLC: Claims Registration Period Ends October 28 ---------------------------------------------------------- Creditors owed money by LLC Gruenzweil have until Oct. 28, 2008, to file written proofs of claim to the court-appointed estate administrator: Michaela Speer Stadtplatz 6 5230 Mattighofen Austria Tel: 07742/2319 Fax: 07742/4984 E-mail: dr.estermann-partner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 8:30 a.m. on Nov. 5, 2008, for the examination of claims at: The Land Court of Ried im Innkreis Hall 101 1st Floor Ried im Innkreis Austria Headquartered in Braunau, Austria, the Debtor declared bankruptcy on Sept. 11, 2008, (Bankr. Case No. 17 S 34/08v). ============= B E L G I U M ============= FORTIS: Moody's Cuts Sub. and Preferred Guarantees Ratings to Ba1 ----------------------------------------------------------------- Moody's Investors Service has downgraded Fortis SA/NV and Fortis N.V. long term issuer ratings to Baa2 from Baa1, and the ratings were placed under review for possible downgrade. Debt ratings benefiting from subordinated and preferred guarantees from the joint holding companies were downgraded to Baa3 and Ba1 respectively. Certain securities benefiting from joint and several guarantees from the holding companies and Fortis ASR Levensverzkering N.V. were confirmed at Baa3 with a developing outlook. Moody's also downgraded the insurance financial strength rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from A3, and the backed senior unsecured debt of Fortis Capital (Asia) Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These ratings now carry a developing outlook. The Group's CP rating was affirmed at P-2 and placed under review for possible downgrade. Summary The rating actions follow the announcement by the Belgian state of a number of actions with respect to Fortis' Belgium and Luxembourg operations, namely the full acquisition and subsequent sale (75% stake) to BNP Paribas of Fortis' Belgian banking operations and the sale of Fortis Insurance Belgium to BNP Paribas, and the acquisition of 66% of Fortis Bank Luxembourg by BNP Paribas. Fortis also holds a 66% stake in an SPV that will acquire certain structured assets from Fortis' banking operations, with the remaining 34% held by the Belgian state (24%) and BNP Paribas (10%). These transactions are subject to regulatory approvals. Consequently, the new Fortis Group (the Group)now consists solely of Fortis' existing international insurance operations (predominantly in Europe and Asia, including Fortis Insurance Company (Asia) Limited, rated Baa1 IFSR), as well as the Group's investment in the structured finance SPV. Furthermore the Group had historically issued various senior and hybrid securities from or guaranteed by the holding companies, then subsequently on-lent to the operating companies, and these obligations remain with the Group as well as the obligations from the operating companies to the Group. Moody's notes that the holding company ratings should ultimately reflect the combined financial strength of the insurance companies included in Fortis Insurance International, their ability to produce earnings for the benefit of the holding companies, and the holding company's subordinated position from these entities. Therefore, the ratings were placed under review for possible further downgrade, and Moody's mentioned that issuer ratings of Fortis SA/NV and Fortis N.V. could potentially be downgraded to below investment grade ratings at the conclusion of the review. Life Insurance Moody's said that the downgrade of FICA, Fortis Group's life insurance operation in Hong Kong, reflects the weakened level of support to FICA from its parent, which now has a much smaller operation, limited business diversification and weaker financial flexibility. The Baa1 IFSR of FICA now represents the stand-alone financial strength of the company, whose business and financial fundamentals remain solid and has not been materially impacted by the financial turmoil and ownership changes at Fortis Group and its banking operations. The outlook, on the other hand, is developing, reflecting the uncertainty surrounding the strategic direction of FICA under the new ownership structure as well as its relatively short operating history under Fortis Group. The backed senior debt rating of Fortis Capital (Asia) is one notch lower than the IFSR of FICA, given that the outstanding bonds of Fortis Capital (Asia) are fully and unconditionally guaranteed by FICA and the guarantee is effectively junior to the liabilities of the insurance policyholders. Holding Company Ratings Commenting on the holding company ratings, Moody's said that the rating action reflects the holding companies reliance going forwards on earnings from Fortis' international insurance businesses. Moody's notes that the majority of these insurance operations, with the exceptions of UK and Portugal, maintain modest positions in relatively small insurance markets, such that the level and sustainability of earnings from these businesses is likely to be modest in future (EUR181 million net income for 2007, excluding gains on the sale of CaiFor), and the Group's business overall shows a relatively unclear strategic direction. Compared with the diversity and quality of earnings previously available to the holding company, this represents a material change in the holding companies' credit quality, justifying the reduction in the holding companies' issuer ratings to Baa2 from Baa1. The rating agency notes that Fortis SA/NV and Fortis N.V. will receive over 14 billion in cash (which Moody's expects to be used to repay the Group's existing senior debts), while the hybrid debts which were previously used to provide financing to the various operating companies of the Group are still economically matched by loans to these entities. More negatively, the holding company holds an investment in a structured portfolio, whose ultimate value is still uncertain and is likely to remain so for some time. Overall however, Moody's regards the Group's existing debt securities as having material collateral backing. Instruments Backed by Fortis SA/NV Moody's also downgraded (senior to Baa2; subordinated to Baa3; preferred to Ba1) and placed under review for possible downgrade all the debt ratings of the securities issued from Fortis Finance N.V., Fortis Hybrid Financing and Fortfinlux S.A . These rating actions follow the rating action taken on the long-term issuer ratings of Fortis SA/NV and Fortis N.V. since all these securities are guaranteed by the holding companies of the Fortis Group. Commenting further on the securities issued by Fortfinlux S.A. (FRESH and MCS) and Fortis Hybrid Financing, the rating agency mentioned that the respective mandatory convertible and junior / preferred status of these securities could imply higher levels of loss as the Fortis Group profile deteriorates, and Moody's review will also consider whether any additional notching is necessary for these junior instruments. In addition, Moody's has confirmed the Baa3 rating of the securities issued by Fortis Floating Rate Capital Funding Trust, Fortis Fixed Rate Quarterly Capital Funding Trust, Fortis Fixed Rate Annual Capital Funding Trust and Fortis Capital Funding LLP, and assigned a developing outlook to these ratings. This rating action reflects the subordinated guarantee provided by Fortis ASR Levensverzekering N.V. (A3 insurance financial strength rating with a developing outlook) to these securities in addition to guarantees from the holding companies, and the seniority of this guarantee which will rank pari passu with preference shares of the insurance company in case of liquidation. Short-term Rating Moody's rating on the Group's CP (P-2 under review for possible downgrade) reflects the high level of illiquidity of the Group's investments in structured assets as well as the dramatic reduction of recurrent revenues coming from the operating companies following the various divestments. The short-term rating is also a reflection of the Group's long-term ratings. Furthermore, although Moody's acknowledges the current high level of cash available within the holding companies, the ultimate cash position of the Group remains uncertain. The review will be concluded in conjunction with the review of long-term ratings. Detailed summary of rating actions: Ratings downgraded and assigned a developing outlook: -- Fortis Insurance Company (Asia) Limited � insurance financial strength rating at Baa1 from A3 -- Fortis Capital (Asia) Limited -- backed senior unsecured debt rating at Baa2 from Baa1 Ratings downgraded and placed under review for possible downgrade: -- Fortis SA/NV -- long term issuer rating at Baa2 from Baa1 -- Fortis N.V. - long term issuer rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed senior unsecured debt rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed senior unsecured MTN debt rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed subordinated MTN debt rating at Baa3 from Baa2 -- Fortis Finance N.V. -- backed junior subordinated MTN debt rating at Baa3 from Baa2 -- Fortis Hybrid Financing -- backed junior subordinated debt rating at Ba1 from Baa3 -- Fortis Hybrid Financing -- backed preferred stock debt rating at Ba1 from Baa3 -- Fortfinlux S.A. -- backed junior subordinated debt rating at Ba1 from Baa3 Ratings affirmed and placed under review for possible downgrade: -- Fortis Finance N.V. -- backed commercial paper at P-2 The following ratings have been confirmed and assigned a developing outlook: -- Fortis Floating Rate Capital Funding Trust � backed preferred stock -- Fortis Fixed Rate Quarterly Capital Funding Trust -- backed preferred stock -- Fortis Fixed Rate Annual Capital Funding Trust -- backed preferred stock -- Fortis Capital Funding LLP -- backed preferred stock The date of the prior rating action on Fortis Group's ratings was on Sept. 30, 2008, when Moody's downgraded Fortis' ratings following the announcement of a capital injection of EUR11.2 billion in Fortis Bank SA/NV, Fortis Bank Nederland (Holding) and Fortis Bank Luxembourg by the states of Belgium, the Netherlands and Luxembourg. Headquartered in Brussels, Belgium and in Utrecht, the Netherlands, Fortis Group had total assets of EUR974.3 billion and reported shareholders' equity (including minority interest) of EUR30.4 billion as of June 30, 2008. =============== B U L G A R I A =============== * BULGARIA: Small Construction Firms to Go Bust, BIA Chair Says --------------------------------------------------------------- Bulgarian Industrial Association chair Bozhidar Danev said small construction companies in the country are likely to go bust as a result of the global financial crisis, reiterating the need to spend the budget surplus on infrastructure to back the construction sector, novinite reports. Mr. Danev predicted many of the seaside projects will not be realized, as well as projects in less attractive sites in Sofia, the report discloses. =========== F R A N C E =========== NATIXIS SA: Largest Shareholders in Merger Talks ------------------------------------------------ Groupe Banque Populaire and Groupe Caisse d'Epargne, who jointly own nearly 70% of investment bank Natixis SA, said Wednesday they were discussing a merger, as the credit crisis forced consolidation in the European financial sector, The International Herald Tribune's David Jolly reports. According to IHT, the two banks, which formed Natixis in 2006 by combining their investment banking and asset management operations, said they were exploring a combination, through a fusion of their central operating units, Banque Federale des Banques Populaires and Caisse Nationale des Caisses d'epargne. The merger, aimed at allowing both banks to ride out the financial crisis, would create a banking group with revenue of EUR17.5 billion, or US$24 billion, deposits of EUR480 billion, and a roughly 25% share of the French retail banking market. Natixis, IHT says, has suffered from exposure to subprime mortgage securities and other stricken derivatives. The same report relates Natixis shares have slumped to just EUR2.18 late Wednesday in Paris from EUR19.55, or US$26.36, when it listed on the Paris stock market in December 2006. In September, IHT recounts, Natixis raised EUR3.7 billion in rights issue at a price of EUR2.25, a deep discount to its previous trading range. The IHT report discloses that the banks, if combined, would have a network 8,200 branches in France and nearly 100,000 employees. With the merger, the banks would be able to operate in a decentralized fashion while preserving their identities in a merged institution. Meanwhile, The Wall Street Journal relates that the merger could take a while because it requires amendments to the bylaws of Caisse d'Epargne, which according to the tight regulations that govern the bank, can only be done with the passing of a law in Parliament. Natixis SA -- http://www.natixis.com/-- formerly Natexis Banques Populaires, is a France-based bank listed on the Euronext Paris Stock Exchange. The Bank is involved in the banking sector and offers five main types of services: financing and investment banking, asset management, services, receivables management, private equity and private banking. Natixis also consolidates a proportion of the earnings of the retail banking activities of the Caisse d'Epargne Group and the Banque Populaire Group, its main shareholders. The Bank clientele comprises large corporations, medium-sized companies, institutions and the Banque Populaire retail-banking network. The Bank operates in 68 countries located in France, Europe, the Americas, Africa, Asia and Oceania. SYNTAX-BRILLIAN: Vivitar's Paris and UK Offices Cease Trading ------------------------------------------------------------- Vivitar Corp.'s offices in France and the United Kingdom have closed with the loss of 26 staff, 12 in Paris and 14 in Leicester, as the firm, known as Vivitar SA France, ceases trading, Chris Cheesman of the Amateur Photographer Magazine reports. Amateur Photography Magazine is a British photography magazine. According to the report, the firm has gone into administration owing more than GBP4 million to creditors. Syntax-Brillian Corporation, which ran into financial difficulties and filed for bankruptcy under Chapter 11 in Delaware on July 8, is the parent company of photographic equipment maker Vivitar Corporation. The Vivitar worldwide brandname and associated intellectual property was recently sold to U.S. consumer electronics firm Sakar Internatinal. Based in Tempe, Arizona, Syntax-Brillian Corporation (Nasdaq:BRLC) -- http://www.syntaxbrillian.com/-- manufactures and markets LCD HDTVs, digital cameras, and consumer electronics products include Olevia(TM) brand high-definition widescreen LCD televisions and Vivitar brand digital still and video cameras. Syntax-Brillian is the sole shareholder of California-based Vivitar Corporation. The company and two of its affiliates -- Syntax-Brillian SPE, Inc., and Syntax Groups Corp. -- filed for Chapter 11 protection on July 8, 2008 (Bankr. D. Delaware Lead Case No.08-11409 to 08-11409. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig LLP, represent the Debtors in their restructuring efforts. Five members compose the Official Committee of Unsecured Creditors. Epiq Bankruptcy Solutions, LLC is the Debtors' balloting, notice, and claims agent. When the Debtors filed for protection from their creditors, they listed total assets of US$175,714,000 and total debts of US$259,389,000. ============= G E R M A N Y ============= A & R BETRIEBS: Claims Registration Period Ends October 13 ---------------------------------------------------------- Creditors of A & R Betriebs- u. Handels GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Dr. Oliver Liersch. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Nov. 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Celle Nebenstelle Hall 014 Ground Floor Branch Mill Road 4 29221 Celle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Oliver Liersch Karl-Wiechert-Allee 1 c 30625 Hannover Germany Tel: 0511-554706-0 Fax: 0511-554706-99 E-mail: OLiersch@schubra.de The District Court of Celle Nebenstelle opened bankruptcy proceedings against A & R Betriebs- u. Handels GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A & R Betriebs- u. Handels GmbH Attn: Angelika Hasenbein, Manager Lake 1 29308 Winsen/Aller Germany AUGUSTINEN GRUNDSTUECKS: Creditors' Meeting Set October 15 ---------------------------------------------------------- The court-appointed insolvency manager for Augustinen Grundstuecksverwaltungs GmbH, Dr. Christoph Schulte-Kaubruegger will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:55 a.m. on Oct. 15, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 11:30 a.m. on Jan. 14, 2009, at the same venue. Creditors have until Nov. 21, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Augustinen Grundstuecksverwaltungs GmbH on Aug. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Augustinen Grundstuecksverwaltungs GmbH Bergengruenstrasse 11 14129 Berlin Germany BAUGESCHAFT VON: Claims Registration Period Ends October 15 ----------------------------------------------------------- Creditors of Baugeschaft von Ahrentschildt GmbH have until Oct. 15, 2008, to register their claims with court-appointed insolvency manager Janin Marholz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 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 Kiel Hall 17 Deliusstr. 22 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: Janin Marholz Wall 55 24103 Kiel Germany Tel: 0431/600530 The District Court of Kiel opened bankruptcy proceedings against Baugeschaft von Ahrentschildt GmbH on Aug. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Baugeschaft von Ahrentschildt GmbH Sandblek 8 24111 Kiel Germany CAFE PLATANE: Claims Registration Period Ends October 12 -------------------------------------------------------- Creditors of Cafe Platane Betreibergesellschaft mbH have until Oct. 12, 2008, to register their claims with court-appointed insolvency manager Klaus Thiery. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Oct. 23, 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 Saarbruecken Area Hall 24 Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach 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 Thiery Poststrasse 30 66687 Wadern Germany Tel: (06871) 90030 Fax: (06871) 900321 The District Court of Saarbruecken opened bankruptcy proceedings against Cafe Platane Betreibergesellschaft mbH on Aug. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cafe Platane Betreibergesellschaft mbH Attn: Michael Thome, Manager Schlossstrasse 5 66606 St Wendel Germany CCS DRUCK: Claims Registration Period Ends October 15 ----------------------------------------------------- Creditors of CCS Druck & Direktmarketing GmbH have until Oct. 15, 2008, to register their claims with court-appointed insolvency manager Michael Pfeffer. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 12, 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 Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Pfeffer Kapuzinerplatz 1 63739 Aschaffenburg Germany Tel: 06021/386710 Fax: 06021/3867130 The District Court of Aschaffenburg opened bankruptcy proceedings against CCS Druck & Direktmarketing GmbH on Aug. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CCS Druck & Direktmarketing GmbH Siemensstr. 2 63839 Kleinwallstadt Germany ESCADA AG: Moody's Downgrades Rating on EUR200 Mil. Notes to B3 --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating (CFR) of Escada AG and the senior unsecured rating on the EUR200 million notes due 2012 to B3 from B2. The outlook on the ratings remains negative. "The rating downgrade follows the third revision of EBITDA guidance for the full year made by the company in less than a year, and the concerns Moody's has on the ongoing softness in consumer spending and the relatively high cash burning rate of the company that are likely to erode the recently restored liquidity profile of the company" says Paolo Leschiutta, Moody's lead analyst for Escada. "Moody's understand the company is implementing its restructuring plan aimed at improving operating performances, however challenging market conditions are likely to offset part of the benefits expected and key credit metrics are expected to remain in line with a weak single-B rating beyond FYE October 2008", adds Mr. Leschiutta. Moody's is expecting financial leverage, measured as Debt to EBITDA, to exceed 6x and fixed charge coverage, measured as (EBITDA - Capex) to Interest Expenses, to remain below 1x at FYE October 2008. In addition, Moody's would expect current market conditions to continue to affect company's operating performances over the short term. Moody's notes that apparel manufacturers in general are subject to a high degree of business seasonality and volatility and therefore need adequate liquidity and stronger credit metrics to cover for seasonal and cyclical peaks. The negative outlook reflects Moody's view that 2009 will remain a year of transition for ESCADA as the pressure on top line and the relative high operating leverage of Group's activities reduce the company's flexibility and that, as a consequence, profitability is likely to remain under pressure beyond October 2008 as the company implements its restructuring program. The outlook also reflects the current economic conditions and the fact that consumer spending is likely to remain low over the intermediate term. The outlook could be changed to stable following the clear evidence of improvements in operating margins and successful implementation of the restructuring program. Further deterioration in Escada's operating performance or ongoing erosion in cash flow generation capability could result in further negative pressure on the rating. The rating could also be downgraded in the case of a change in Moody's perception of current market conditions or potential deterioration in recovery rate for bondholders in case of default. Ratings downgraded: -- Escada CFR downgraded to B3 from B2. -- The senior unsecured rating on the EUR200 million notes due 2012 downgraded to B3 from B2. Outlook is negative ESCADA, headquartered in Munich, is one of the leading European manufacturers and distributors of ready-to-wear luxury apparel for women. In the financial year ended Oct. 31, 2007, the company reported consolidated sales of EUR686 million and EBITDA of EUR68.2 million. As at 9 months July 2008 the company reported consolidated sales of EUR430.4 million and EBITDA of EUR21.2 million. GENERAL MOTORS: Opel to Cut Production in Europe by 40,000 Cars --------------------------------------------------------------- Dow Jones Newswires reports that General Motors Corp.'s Opel brand will cut production in Europe by 40,000 cars by year-end due to declining demand. Dow Jones relates that an Opel spokesperson said that the company will lessen production at its German plants in Bochum and Eisenach to not build up inventory, which would hurt prices for new cars. According to Business.techwhack.com, GM already shut down the Bochum factory, which would remain down until Oct. 13. GM said that production at their plant in Eisenach would stop from Oct. 13 for three weeks, Business.techwhack.com states. The spokesperson, according to Dow Jones, said that GM Europe is also discussing about reducing production at its U.K. and Spain plants. The Opel plant in Gliwice, Poland, will stop production for 20 days, reducing production by 15,000 cars at the Gliwice plant, Przemyslaw Byszewski told TVN CNBC television. Dow Jones quoted Mr. Byszewski as saying, "Our daily output has recently averaged 700 units a day and we're talking about a 20-day shutdown." 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 June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. HSC HANDELSSYSTEME: Claims Registration Period Ends October 15 -------------------------------------------------------------- Creditors of HSC Handelssysteme Consulting GmbH have until Oct. 15, 2008, to register their claims with court-appointed insolvency manager Frank Schmitt. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 5, 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 Wiesbaden Hall E 36 A Third Floor Building E Moritzstrasse 5 65185 Wiesbaden 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: Frank Schmitt Kanzlei Schultze & Braun GmbH Olof-Palme-Strasse 13 60439 Frankfurt/Main Germany Tel: 069/509 86 0 Fax: 069/509 86 110 E-mail: Fschmitt@schubra.de The District Court of Wiesbaden opened bankruptcy proceedings against HSC Handelssysteme Consulting GmbH on Aug. 21, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HSC Handelssysteme Consulting GmbH Abeggstrasse 21 65193 Wiesbaden Germany KAPELLA DACHDECKEREI: Creditors Meeting Slated for October 13 ------------------------------------------------------------- The court-appointed insolvency manager for Kapella Dachdeckerei GmbH & Co. KG Berlin, Dr. Petra Hilgers, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 9:15 a.m. on Oct. 13, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on Jan. 26, 2009, at the same venue. Creditors have until Nov. 27, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Petra Hilgers Goethestr. 85 10623 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Kapella Dachdeckerei GmbH & Co. KG Berlin on Sept. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kapella Dachdeckerei GmbH & Co. KG Berlin Wilhelm-Busch-Str. 16 12043 Berlin Germany KIENITZER DACHBAU: Claims Registration Period Ends October 15 ------------------------------------------------------------- Creditors of Kienitzer Dachbau GmbH have until Oct. 15, 2008, to register their claims with court-appointed insolvency manager Dr. Petra Hilgers. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 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 Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) 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. Petra Hilgers Goethestrasse 85 10623 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against Kienitzer Dachbau GmbH on Aug. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kienitzer Dachbau GmbH Kienitzer Oderstrasse 6 15324 Letschin OT Kienitz Germany LECKERHOELKEN BETRIEBS: Claims Registration Period Ends Oct. 15 --------------------------------------------------------------- Creditors of Leckerhoelken Betriebs GmbH have until Oct. 15, 2008, to register their claims with court-appointed insolvency manager Reinhold Schmid-Sperber. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 5, 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 Neumuenster Meeting Hall B.126 Law Courts Boostedter Strasse 26 Neumuenster 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: Reinhold Schmid-Sperber Westring 455 24118 Kiel Germany The District Court of Neumuenster opened bankruptcy proceedings against Leckerhoelken Betriebs GmbH on July 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Leckerhoelken Betriebs GmbH Leckerhoelken 3 24250 Bothkamp Germany LEIN TECH: Creditors Meeting Slated for October 13 -------------------------------------------------- The court-appointed insolvency manager for Lein Tech GmbH, Rolf Nacke, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:55 a.m. on Oct. 13, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 11:30 a.m. on Jan. 26, 2009, at the same venue. Creditors have until Nov. 27, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Rolf Nacke Gross-Berliner Damm 73 c 12487 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Lein Tech GmbH on Sept. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lein Tech GmbH Alte Rhinstr. 16 12681 Berlin Germany NOVAFORM KUECHEN: Claims Registration Period Ends Oct. 13 --------------------------------------------------------- Creditors of NovaForm Kuechen nach Mass GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Felix Gaertner. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 11, 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 Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg Germany The Court will also verify the claims set out in the insolvency manager's report 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: Felix Gaertner Wendelinusplatz 3 63785 Obernburg Germany Tel: 06022/710800 Fax: 06022/7108020 The District Court of Aschaffenburg opened bankruptcy proceedings against NovaForm Kuechen nach Mass GmbH on May 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NovaForm Kuechen nach Mass GmbH Alte Eschauer Str. 4, 63933 Moenchberg Germany PICABELLO GMBH: Claims Registration Period Ends Oct. 13 ------------------------------------------------------- Creditors of picabello GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Dr. Christian Dawe. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on Nov. 13, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Meeting Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christian Dawe Gansemarkt 50 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against picabello GmbH on Aug. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: picabello GmbH Attn: Rainer Bernd Winterstein, Manager Eulenkamp 41 22049 Hamburg Germany PIZZERIA CAPRICCIO: Claims Registration Period Ends Oct. 13 ----------------------------------------------------------- Creditors of Pizzeria Capriccio GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 24, 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 Arnsberg Meeting Hall 328 Eichholzstr. 4 59821 Arnsberg 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: Manfred Gottschalk Wagenbergstr. 2 59759 Arnsberg Germany The District Court of Arnsberg opened bankruptcy proceedings against Pizzeria Capriccio GmbH on Aug. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pizzeria Capriccio GmbH Marktstrasse 3 a 59759 Arnsberg Germany Attn: Dieter Junghoelter, Manager Ohl 15 a 59757 Arnsberg Germany PRODUCTION UND ASSEMBLING: Claims Registration Ends Oct. 12 ----------------------------------------------------------- Creditors of P.A.C. Production und Assembling Center GmbH have until Oct. 12, 2008, to register their claims with court-appointed insolvency manager Soenke Hansen. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Oct. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Soenke Hansen Moenckebergstrasse 17 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against P.A.C. Production und Assembling Center GmbH on Aug. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: P.A.C. Production und Assembling Center GmbH Attn: Guerkan Eker, Manager Frankenstrasse 3 20097 Hamburg Germany R + S BAU: Claims Registration Period Ends October 13 ----------------------------------------------------- Creditors of R + S Bau GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Dr. Christian Strauss. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 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 Oldenburg Meeting Hall Second Floor Elisabethstrasse 6 26135 Oldenburg 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. Christian Strauss Friedrich-Missler-Str. 42 28211 Bremen Germany Tel: 0421 7926260 Fax: 0421 7926285 The District Court of Oldenburg opened bankruptcy proceedings against R + S Bau GmbH on Sept. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R + S Bau GmbH Attn: Anja Reiners-Schlangen, Manager Karl-Jaspers-Strasse 17 26655 Westerstede Germany SCHOEN-HAUS GMBH: Claims Registration Period Ends Oct. 13 --------------------------------------------------------- Creditors of Schoen-Haus GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Jens Fahnster. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Limburg Hall D 219 Walderdorffstrasse 12 65549 Limburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens Fahnster Koelnstr. 135, D 53757 Sankt Augustin-Hangelar Germany Tel: 02241/9060-0 Fax: 02241/9060-90 E-mail: kanzlei@kalker-fahnster.de The District Court of Limburg opened bankruptcy proceedings against Schoen-Haus GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schoen-Haus GmbH Elzer Strasse 9 65556 Limburg-Staffel Germany Attn: Heinz Schoen, Manager Wies'chen 19 65594 Runkel Germany * GERMANY: Rejection of Banks' Rescue Fund Gets ECB's Support ------------------------------------------------------------- The European Central Bank's chief and the chairman of euro zone finance ministers sided with Germany in rejecting any need for a European rescue fund for banks suffering from the global financial crisis, Reuters says. German Chancellor Angela Merkel said Germany "cannot and will not issue a blank check for all banks," Reuters relates. Germany's Finance Ministry said the German government "completely disagreed" with the idea. Similarly, Dutch Prime Minister Jan Peter Balkenende voiced his opposition to an EU-wide rescue fund, Reuters says. But he said national governments could set aside money to help any troubled banks in their own countries. "The (Dutch) plan is for every member state to put aside money to make a capital injection for their own banks if necessary. The idea is that it will be some 3% of gross domestic product," he said after talks with Mr. Sarkozy in Paris. * * * As reported by the Troubled Company Reporter-Europe on Sept. 17, 2008, the European Commission based in Brussels projects that the United Kingdom, Germany and Spain will experience recession this fall, BBC News reported. The Commission said that the three countries would suffer two negative quarters of economic growth, the technical definition of recession, BBC related. The Commission sees a 0.2% annual shrinkage in the UK economy over the next two quarters. On Sept. 24, 2008, the TCR-Europe reported that according to reports, amid the German Finance Ministry's statement that the market crisis has little effect on the real economy in Germany, the crisis has increased the downside risks to the country's economic outlook. The Ministry had said that the crisis is mainly a United States issue. Finance Ministry spokesman Torsten Albig said that while some German financial institutions had been hit by the U.S. subprime crisis, "in their totality, [they] are recognizably not as involved as U.S. and other Anglo-Saxon institutions," Monsters & Critics reported. ============= H U N G A R Y ============= PROPEX INC: Committee Sued BNP Paribas, et al., Over Demise ----------------------------------------------------------- The Official Committee of Unsecured Creditors initiated a complaint against BNP Paribas, as administrative agent under a 2006 credit agreement Propex Inc. and its debtor-affiliates entered into with certain lenders, for allegedly engaging in a scheme designed to deplete the Debtors' resources and ultimately force a bankruptcy proceeding in which the lenders could wrest control of the Debtor companies. BNP Paribas Credit Agreement Propex Inc. acquired all of the outstanding capital stock of its largest competitors, SI Concrete Systems Corporation and SI Geosolutions Corporation, for US$232.6 million. About US$28.1 million of the purchase price was paid out of the Debtors' cash on hand. To raise additional funds, Propex entered into a US$360 million Credit Agreement in January 2006 with BNP Paribas. By June 2006, the Debtors changed their corporate names. That event triggered a statutory requirement under Section 9-507(c) of the Uniform Commercial Code for the Lenders to re-perfect their liens on the Debtors' pledged assets by filing amended UCC statements. The Lenders, however, failed to re-perfect their liens on certain of the Debtors' property by the statutory deadline and instead perfected those liens by filing amended UCC statements in December 2006, Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld, LLP, in New York, points out, on the Committee's behalf. The late UCC filings, Mr. Dizengoff contends, constituted a new transfer by the Debtors for which the Lenders provided no value to the Debtors. He adds that the late filings occurred at a time when the Debtors were insolvent. The Lenders also failed to file any amended UCC statement reflecting Propex's name change with respect to a lien on Propex's personal property located in Berrien County, Georgia, Mr. Dizengoff tells the Court. A list of the BNP Paribas unperfected liens is available for free at http://ResearchArchives.com/t/s?336e Insolvency and Default by December 2006 According to Mr. Dizengoff, the anticipated benefits from the SI Acquisition failed to materialize. The Debtors suffered from the continued loss of business from their customers and a liquidity squeeze due in part to their US$28.1 million cash payment made in connection with the SI Acquisition, monthly payments on the Credit Agreement, and rising propylene prices. By December 2006, the Debtors were insolvent, Mr. Dizengoff maintains. By the fourth quarter of 2006, the Debtors' total EBITDA fell to US$16.1 million, and the Debtors' net income fell from US$14 million to US$1.8 million during the same timeframe. At that juncture, it would have been in the best interest of the Debtors to seek Chapter 11 protection or seek more financing, Mr. Dizengoff says. The Lenders, however, Mr. Dizengoff argues, engaged in a course of conduct designed to artificially prolong the Debtors' operations, deepen their insolvency, and further deplete their liquid assets, while the Lenders strengthened their own stake in the Debtors in anticipation of an eventual bankruptcy proceeding. Specifically, he cites, the Lenders induced the Debtors to enter into the a Second Amendment of the Credit Agreement when they knew or should have known that the Debtors would likely not satisfy its terms. In exchange for the Second Amendments' limited waiver and relaxed covenants, the Lenders demanded that the Debtors pay down principal on the debt by US$20 million and pay an increased interest rate of 75 basis points going forward. The Debtors agreed to "such inequitable terms" relying on the representation that the Lenders would readily negotiate further relief or refinancing if a default occurred, Mr. Dizengoff relates. The payment obligations that the Lenders imposed pursuant to the Second Amendment left the Debtors undercapitalized and ensured that they would slip further into insolvency and financial distress, Mr. Dizengoff insists. "[T]he Debtors lost over US$60,000,000 in the first nine months of 2007 alone." By September 2007, the Debtors triggered multiple covenant defaults. The Committee notes that the Debtors' situation further deteriorated in December 2007 as their vendors began demanding payment in advance of shipments. The Debtors purportedly approached the Lenders in October 2007 about negotiating another amendment. By November 2007, however, it became apparent to the Debtors that the Lenders did not intend to negotiate, according to Mr. Digenzoff. Subsequently, with no prospects of alternative financing, the Debtors were forced to file for Chapter 11 protection. Furthermore, Mr. Dizengoff points out, as a result of the undercapitalization caused by the Second Amendment, the Debtors were in a far weaker state and thus had no viable alternative but to accept the DIP Financing underwritten by the Lenders. Purported Liens on Propex's Hungarian Subsidiaries Mr. Dizengoff adds the Lenders purport to have prepetition liens on 66% of the capital stock of two of the Debtors' subsidiaries in Hungary. He objects to the Lenders' contention and asserts that a valid pledge with respect to the stock was never registered. Accordingly, under its Complaint, the Committee brought charges against the Lenders pertaining to claims for fraudulent conveyance, claims for equitable subordination, claims for deepening insolvency, and claims for avoidance of improperly filed security interest, among others. Mr. Dizengoff asserts, among others, that: -- the Debtors did not receive reasonably equivalent value for the US$20 million cash payment and associated fees they paid in exchange for the Second Amendment terms; -- the Lenders breached their duties to the Debtors by proposing the Second Amendment; Specifically, under the Complaint, the Committee seeks: (a) an avoidance of recover certain fraudulently conveyed liens on the Debtors' collateral. The liens refer to liens the Lenders untimely perfected outside the UCC statutory four-month window; (b) equitable subordination of all or some of the Lenders' claims; (c) a judgment for all damages caused by acts of the Lenders that deepened the Debtors' insolvency; (d) an avoidance of any purported lien claimed by the Lenders on certain properties; (e) an avoidance of the Lenders' lien relating to Propex's property in Berrien County, Georgia; (f) an avoidance of the Lenders' liens with respect to the Debtors' environmental permits because the regulations that govern the permits provide that it do not convey a property interest that can be pledged as collateral; (g) a declaratory judgment that: * the Lenders' pendency interest should be calculated at the non-default rate set forth in the Credit Agreement; * the Debtors are entitled to choose between the Adjusted LIBOR Rate or Base Rate as defined in the Credit Agreement; and * the Debtors are entitled to recovery of all overpayments of adequate protection payments calculated at the Base Rate on principal that is increasing at a compounded 2% Default Rate; (h) a declaratory judgment that the Lenders do not have any security interest in the capital stock of the Hungarian subsidiaries; and (i) a declaratory judgment that the Lenders have adequate protection liens and Section 507(b) "superpriority" claim only to the extent they can demonstrate that there has been a diminution in value of their prepetition collateral during the pendency of the Debtors' Chapter 11 cases, and that there has been no diminution in value demonstrated by the Lenders as of September 23, 2008. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It also produces primary and secondary carpet backing. Propex has manufacturing facilities in Brazil, Mexico, Germany, Hungary and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The Debtors have selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. The Official Committee of Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel. The Court extended the exclusive plan filing period of the Debtors through Oct. 20, 2008, and their exclusive solicitation period through Dec. 19, 2008. As of June 29, 2008, the Debtors' balance sheet showed total assets of US$562,700,000, and total debts of US$551,700,000. (Propex Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Wants to Hire PricewaterhouseCoopers as Accountants --------------------------------------------------------------- Propex, Inc., and its debtor-affiliates ask the United States Bankruptcy Court for the Eastern District of Tennessee for authority to employ PricewaterhouseCoopers LLP as their accountants. The Debtors have selected PwC because of the company's extensive experience, knowledge and recognized expertise in tax issues and other financial matters. The Debtors believe that PwC is both well-qualified and uniquely able to represent them in their Chapter 11 cases and in other matters in an efficient timely manner. As the Debtors' accountants, PwC is expected to: (a) develop a model to determine the impact of Cancellation of Debt Income, which will also include: -- considerations regarding the benefit of electing to invert attribute reduction; and -- assessing and planning regarding proposed exchanges of and modifications of debt; (b) assess the potential impact of a Section 382 limitation, which will also include: -- an evaluation of status of creditors as "qualified" creditors for purposes of Section 382(1)(5) and a consideration of whether Section 382(1)(5) or Section 382(1)(6) is more advantageous; and -- a quantification of net unrealized built-in-gain or NUBIG and net unrealized built-in-loss or NUBIL and an assessment of the impact flowing from potential ownership change; (c) develop a model to project future cash taxes; (d) provide input and feedback to counsel and the Official Committee of Unsecured Creditors' attorneys concerning the bankruptcy plan and disclosure statement; (e) plan concerning post-emergence corporate structure; and (f) develop a state tax model to identify opportunities to preserve tax attributes in key states. In addition, PwC will conduct an "Earnings and Profits" study. The Debtors propose to pay PwC for its services at these hourly rates: Professional Hourly Rate ------------ ----------- Partner US$600 - US$700 Director US$400 - US$510 Manager US$320 - US$400 Sr. Associate US$210 - US$265 Associate US$150 - US$180 James D. Callihan, a partner of PricewaterhouseCoopers LLP, assures the Court that his firm does not hold any interest adverse to the Debtors or their estates with respect to the matters for which the firm is retained. He further informs the Court that his firm was engaged as independent auditors to audit the consolidated financial statements of the Debtors for the year ending December 30, 2007. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It also produces primary and secondary carpet backing. Propex has manufacturing facilities in Brazil, Mexico, Germany, Hungary and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-10249). The Debtors have selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. The Official Committee of Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel. The Court extended the exclusive plan filing period of the Debtors through Oct. 20, 2008, and their exclusive solicitation period through Dec. 19, 2008. As of June 29, 2008, the Debtors' balance sheet showed total assets of US$562,700,000, and total debts of US$551,700,000. (Propex Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= I C E L A N D ============= GLITNIR BANKI: IFSA Takes Control of Operations ----------------------------------------------- The Icelandic Financial Supervisory Authority (IFSA) has under powers granted by the Icelandic Parliament proceeded to take control of Glitnir banki hf. As declared by the Government, all domestic deposits are fully guaranteed. Glitnir's domestic branches, call centers, cash machines (ATMs) and Internet operations will be open for business as usual. The action taken by the IFSA is a necessary first step in achieving the objectives of the Icelandic Government and Parliament to ensure the continued orderly operation of domestic banking and the safety of domestic deposits. As reported in the TCR-Europe Oct. 6, 2008, the government of Iceland bailed out Glitnir banki after it was unable to secure short-term funding. Glitnir had a deposit-to-loan ratio of about 30%, the lowest among Iceland's biggest banks, meaning it had to rely on money markets for financing. Bjorn Richard Johansen, an Oslo-based spokesman for Glitnir, said the bailout would remove all doubts on the company. About Glitnir Headquartered in Reykjavik, Iceland, Glitnir banki reported total assets of ISK346 billion (EUR30.9 billion) at the end of June 2008. * * * As reported by the TCR-Europe on Oct. 2, 2008, Moody's Investors Service downgraded the Bank Financial Strength Rating (BFSR) of Glitnir banki hf to D from C-, the long-term bank deposit and senior debt ratings to Baa2 from A2 and the short-term rating to Prime-2 from Prime-1. In addition, Moody's downgraded the bank's subordinated debt to Ba1 from A3 and its preferred stock to B1 from Baa1. The BFSR remains on review for possible downgrade, while the outlook on debt and deposit ratings is developing. The rating action follows recent announcement that the Government of Iceland provided Glitnir with a capital injection of EUR600 million, thereby giving the government a 75% stake in the bank. The capital injection was in response to Glitnir's temporary liquidity difficulties in light of adverse market conditions. GLITNIR BANK: S&P Cuts Counterparty Credit Rating to 'CCC' ---------------------------------------------------------- Standard & Poor's Ratings Services has lowered its long-term counterparty credit rating on Iceland-based Glitnir Bank to 'CCC' from 'BBB' and placed it on CreditWatch with negative implications. At the same time, it lowered its short-term counterparty credit rating on the bank to 'C' from 'A-3'. Furthermore, the ratings on the hybrid capital instruments of the bank were lowered to 'CC', two notches below those on the counterparty credit ratings. "The rating actions reflect our increased concerns about the implications for Glitnir's asset quality and liquidity position following the passage of a bill yesterday by the Icelandic government enabling the government, in certain conditions, to take over commercial banks," said S&P's credit analyst Miguel Pintado. The government stated that given the increasing refinancing difficulties faced by Icelandic banks, the government is authorizing the Icelandic Financial Supervisory Authority to take over commercial banks under certain conditions. "As the unwinding of the Icelandic banking sector takes place in the coming weeks, the repercussions on the economy and on the banks themselves will be significant," added Mr. Pintado. The implications for Glitnir's asset quality and that of the other banks could be transformational as major Icelandic holding companies with interests in foreign countries and in many cases current large borrowers (and shareholders) of the banks themselves are likely to be significantly hit in the event of government takeovers. Glitnir Bank issued a profit warning last week following a 70% drop in its share price that followed the government's takeover of 75% of the shares in the bank. In addition, the major depreciation of the Icelandic krona in the past few weeks will put significant pressure on domestic borrowers, which have increasingly taken out foreign currency loans that are only partly naturally hedged by foreign exchange revenues. Furthermore, asset quality is likely to be negatively affected by high inflation, which in turn will increase the debt service burden on the bulk of households that have inflation- indexed loans. Because of the wholesale nature of Icelandic banks' funding and their rapid expansion into Internet deposits in the U.K. and the Nordic countries, the announcement is likely to prompt massive withdrawals in the days ahead, which in turn is likely to exacerbate funding and liquidity pressure. Although S&P considers Glitnir to be of high systemic importance within the Icelandic banking system, the announcement by Mr. Haarde makes it clear that depositors and investors cannot depend on government support for Glitnir's foreign operations. ICESAVE: To Go Into Insolvency Proceedings in Iceland ----------------------------------------------------- HM Treasury, on Tuesday, Oct. 7, 2008, confirmed that if, as expected, Landsbanki is soon declared in default, the Government will make sure that no retail depositor will lose any money as a result of the closure of Icesave. The Treasury have also confirmed that arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax free status of their accounts. The Financial Services Compensation Scheme (FSCS) is working closely with HM Treasury, the Financial Services Authority (FSA) and the Icelandic compensation scheme on arrangements to get people their money back. In the light of the current uncertainties, the FSCS is gearing up in case it needs to assist approximately 300,000 savers at Icesave. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default. Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first EUR20,887 of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of GBP50,000. If the default is triggered as expected, the FSCS will contact all UK savers directly with details of how to apply for compensation. About FSCS FSCS is the UK's compensation fund of last resort for customers of financial services firms authorized by the Financial Services Authority or previous financial regulators. This means that FSCS can pay compensation to consumers if an authorized financial services firm is unable, or likely to be unable, to pay claims against it and so is in "default." FSCS protects deposits, life and general insurance firms, investment business (on or after Aug. 28, 1988), home finance (e.g. mortgage) advice and arranging (on or after Oct. 31, 2004), and general insurance policies advice and arranging (on or after Jan. 14, 2005). About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. About Icesave Icesave is the UK branch of Landsbanki Islands hf (trading under the registered name Icesave). It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. LANDSBANKI: In Receivership; IFSA Takes Control of Operations ------------------------------------------------------------- The Icelandic Financial Supervisory Authority (IFSA) has under powers granted by the Icelandic Parliament proceeded to take control of Landsbanki Islands hf. As declared by the Government, all domestic deposits are fully guaranteed. Landsbanki's domestic branches, call centers, cash machines (ATMs) and Internet operations will be open for business as usual. The action taken by the IFSA is a necessary first step in achieving the objectives of the Icelandic Government and Parliament to ensure the continued orderly operation of domestic banking and the safety of domestic deposits. Receivership Committee The IFSA has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect. Members of the receivership committee are: Arsaell Hafsteinsson, Einar Jonsson, Larentsinus Kristjansson, Larus Finnbogason and Sigurjon Geirsson. The receivership committee have stated the following: * The objective of the committee is to ensure the continued operations of the commercial banking operations of Landsbanki Islands hf. in Iceland. * A public notice to debtors will not be issued. * Provisions of Icelandic insolvency laws do not apply to the operations of Landsbanki while the receivership committee is responsible for the matters of the bank. Ceasure of assets can not be made against Landsbanki during the same period. By law, the action of appointing a receivership committee, can not have the effect of creating a default under any loan documents. The receivership committee have asked Halldor J. Kristjansson and Sigurjon Arnason to continue their work as CEOs of Landsbanki and be responsible for daily operations. Landsbanki would like to stress that the bank has not been put into liquidation but is in receivership which gives it a temporary protection from payment of debts and obligations as they fall due. Work has already begun on the restructuring of the operations of Landsbanki. The receivership committee and Landsbanki's CEOs share the view that operations over the next days will be performed in a manner as close to business as usual with a view to protecting Landsbanki's assets in Iceland and abroad. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. LANDSBANKI: Chancellor to Freeze Assets in the UK ------------------------------------------------- Acting on the advice of the Bank and Financial Services Authority (FSA), and in light of announcements made by the Icelandic authorities in recent days, the Chancellor has taken action yesterday, Oct. 8, 2008, to protect the retail depositors in two Icelandic owned banks: Icesave, a UK-based branch of Landsbanki and Heritable, a UK-based banking subsidiary of Landsbanki. He has taken this action to ensure the stability of the UK financial system. Savers' money is safe and secure. Landsbanki/Icesave The UK authorities expect that Landsbanki will soon be declared in default. Should that occur, the Chancellor has put in place arrangements to ensure that no retail depositor will lose any money as a result of the closure of Icesave. The Treasury and the Financial Services Compensation Scheme are working with the Icelandic authorities and their Deposit Insurance Scheme to ensure that depositors are paid back as quickly as possible. The Chancellor has also spoken to the Icelandic Finance Minister about the importance of the Icelandic authorities ensuring that UK depositors in Icesave are given the same protections as depositors in Iceland and receive their deposits back in full promptly. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts. The Chancellor has also taken steps to freeze assets of Landsbanki in the UK until the position with respect to the future of the firm and UK creditors becomes clearer. Heritable Heritable is regulated by the FSA. The FSA has determined that Heritable no longer meets its threshold conditions, and is likely to be unable to continue to meet its obligations to depositors. The FSA concluded that it is in default for the purposes of the Financial Services Compensation Scheme. The Treasury has used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors. Heritable's retail deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group. ING Direct is working to rapidly ensure that it is business as normal for all customers. This action by the Tripartite Authorities protects savers' money and provides certainty for retail depositors. The transfer of the retail deposit book has been backed by cash from HM Treasury and the Financial Services Compensation Scheme. The remainder of Heritable's business has been put into administration. Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING will be paid out in full through the Financial Services Compensation Scheme. This is the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer. About Heritable Heritable, a UK-based banking subsidiary of Landsbanki. About Icesave Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. * S&P Revises Iceland's BICRA to Group 8 from Group 5 ----------------------------------------------------- Standard & Poor's Ratings Services has revised its Banking Industry Country Risk Assessment (BICRA) on the Republic of Iceland to Group 8 from Group 5. The revision reflects the high vulnerability of the Icelandic banking model to the tight liquidity conditions in the global debt markets. At the same time, S&P increased its estimate of the level of cumulative problem loans and foreclosed property (the gross problematic asset range) for the Icelandic banking sector to 35%- 50%. This means that in a severe recession scenario, the cumulative amount of nonperforming and restructured loans could reach 35%-50% of total outstanding loans in Iceland. The three large Icelandic banks -- Kaupthing Bank (not rated), Landsbanki (not rated), and Glitnir Bank -- have followed an aggressive expansion strategy since 2004, mainly financed by foreign money and capital markets. This rapid expansion has made the banks highly exposed to reputational risk and sensitive to international investors' perception. As the third-largest bank, Glitnir could no longer roll over short-term debt, and was nationalized by the government on Sept. 29, 2008. The government injected EUR600 million in capital, corresponding to a 75% ownership share in Glitnir. As a result, investors' concerns about the other banks increased significantly. On Oct. 6, 2008, the Icelandic government announced that, given increasing refinancing difficulties for Icelandic banks in the current liquidity squeeze, an emergency banking bill has been adopted by parliament, which allows the Icelandic Financial Supervisory Authority, FME, to take over commercial banks under certain conditions. On Oct. 7, the FME announced that the second- largest bank, Landsbanki, will be taken over by the government. S&P expects that the government will take over the rest of the sector in the short term, as banks are finding it impossible to find adequate liquidity and funding sources. The recent developments likely mark the end of the Icelandic banking model as it had developed over recent years. The forthcoming unwinding of the banking sector is likely to have significant repercussions on the economy and on the banks themselves. Borrowers directly related to the banks, i.e., the current large shareholders, are likely to be significantly hit by a government takeover, which will impair asset quality. Nevertheless, S&P expects the government to try to mitigate the negative impact on the Icelandic households if there were to be any renewed significant pressure on the Icelandic krona (ISK). A significant fall in the ISK would, otherwise, put pressure on domestic borrowers, which have increasingly taken loans in foreign currency, of which only some are naturally hedged by revenues in foreign exchange. In addition, any significant fall in the ISK would add to already high inflation, which would increase the debt service for the bulk of households that have inflation-indexed loans. S&P revised its opinion of the Icelandic government's propensity to step in and support failing banks. In accordance with its methodology, S&P now classifies the Icelandic government in the category "support uncertain" instead of "supportive" in relation to systemically important banks in the country. S&P's opinion reflects the fact that the government -- given the banking sector's relative size to the country (assets are about 10x GDP) -- has a very limited capacity to support the three large banks, even if it were willing to do so. The state's foreign exchange reserves are limited in comparison to the banking sector's maturities falling due in foreign currency. Ratings List: Iceland To From BICRA 8 5 ============= I R E L A N D ============= BIRCHPORT: Seeks Examinership Following Downturn in Pub Business ---------------------------------------------------------------- The directors of Birchport, the holding company behind The Ocean Bar upmarket pub in the Dublin docklands, have petitioned the High Court to put the firm into examinership, Ian Kehoe of The Sunday Business Post Online reports. Kieran McCarthy, an accountant with Hughes Blake, was appointed interim examiner on October 3. According to the report, Birchport, whose debts stood at almost EUR2 million, ran into financial difficulties following the downturn in pub business and pressure from rising costs. The examinership, the report notes, will allow the company to restructure its debts and deal with its creditors. Citing documents lodged with the High Court, the report relates Birchpost owes EUR1.32 million to ACC Bank, which has a secured charge over the company's leasehold interest. CAPPOQUIN CHICKEN: Workers Take Deal; 40 Lost Jobs -------------------------------------------------- Cappoquin Poultry Ltd. workers have returned to work after agreeing to a new pay and conditions, RTE Business News says. Of the 200 previous employees, 40 are expected to be laid off. RTE Business notes that a majority of employees at a meeting on Oct. 6, 2008, rejected management's decision to take a 17% cut in hourly pay. A new offer was presented entailing a further 10 job losses, but those remaining would be offered EUR9 per hour and time and a quarter for overtime. On Oct. 8, 2008, TCR-Europe reported that the company has been sold to two British Investors. The company went into liquidation on Sept. 2, 2008, with debts estimated between EUR7 million to EUR8 million. The TCR-Europe reported on Oct. 08, 2008, citing Irish Times, that liquidator Aidan O'Connell of Deloitte has confirmed that Cappoquin Poultry Plant has been sold to Derby Poultry. According to RTE Business, employees may either apply for a job with the new company or take redundancy terms set out by the liquidator. Cappoquin Poultry processes 220,000 chickens per week and pays out up to EUR7 million per year in wages. ========= I T A L Y ========= ALITALIA SPA: Lufthansa May Get Minority Stake in Airline --------------------------------------------------------- Reuters reports that German and Italian leaders backed a potential agreement on Monday between Alitalia SpA and Lufthansa on the German airline taking a minority stake in the Italian carrier. "We have said that we are open to international alliances and it would please us greatly if this alliance was with a country that we have worked with a lot, namely Germany," Italian Prime Minister Silvio Berlusconi was cited by Reuters News as saying during a joint news conference with German Chancellor Angela Merkel in Berlin. "For Italy this would be welcome and it's of course up to the two parties, Alitalia and Lufthansa, to decide if it would be convenient for both," he added. Reuters relates that Ms. Merkel said Germany would also welcome the deal but added it was up to Lufthansa to decide. According to the report, Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save the national carrier, said it will choose a foreign partner for the airline in the coming weeks. Lufthansa and Air France-KLM are the likely contenders, Reuters says. Marketing of Alitalia As reported in the Troubled Company Reporter-Europe on Sept. 30, 2008, various sources said CAI is considering selling a minority stake to either Air France-KLM or Lufthansa and launching the new Alitalia by November 1. CAI revived its bid for Alitalia after it reached agreement with all the nine Alitalia unions. CAI's rescue plan calls for renaming of Alitalia and writing off between EUR1.2 billion and EUR2 billion worth of its debt. On Sept. 22, 2008, the TCR-Europe reported that CAI withdrew its bid to buy Alitalia's healthier assets after failing to win the support of labor unions. After CAI's withdrawal, Alitalia proceeded with its fourth public request for offers to buy any or all parts of the company's assets until Sept. 30, 2008. The carrier published notices in the Italian newspapers Corriere della Sera, il Sole-24 Ore and la Repubblica, as well as the London- based Financial Times, according to The Associated Press. In the prepared notice cited by The AP, Alitalia sought "whoever might be able to guarantee the continuity, in the medium term, of the transportation service . . . to submit its expression of interest." As reported in the TCR-Europe on Oct. 2, 2008, Alitalia Extraordinary Commissioner Augusto Fantozzi said he received several expressions of interest for Alitalia within the terms of the deadline on Sept. 30, 2008. However, only CAI's proposal is directly concerned with the overall activities of air transport. Other expressions of interest meanwhile concerned specific branches or activities of the various companies making up the Alitalia Group. Intesa Sanpaolo, Alitalia's financial advisor for the procedure, has started analyzing the expressions of interest received. Upon completion of the analysis, the proposers who meet the conditions for initiating negotiations will undergo due diligence examination. Mr. Fantozzi had not named the entities who were submitting expressions of interest. A report posted at World Aeronautical Press Agency's site meanwhile said Alitalia's Mr. Fantozzi expected to receive a binding offer from CAI from October 13 to 15 and the signature of the agreement on assets sale "In bonis" of the carrier by October 20. About slots it is Assoclearance which should probably decide, the report added. Unions Seek Urgent Meeting Separately, Unions, worried about Alitalia's current situation, asked Commissioner Fantozzi of calling an urgent meeting in order to "Allow a confrontation on the current management phase of the carriers' activities", a report posted October 7 at World Aeronautical Press Agency says. According to the report, Filt Cgil generel secretary Mario Rossi said that at the moment, the major fear is that "some company's segments" could not survive until the "new management phase". Ryanair Balks at State Bailout A TCR-Europe report on Oct. 6, 2008, said low fare airline Ryanair submitted a formal complaint to the EU Commission regarding the latest bailout of Alitalia. Ryanair said it has previously submitted several complaints against Alitalia and other flag carrier airlines, including Olympic, Air France and Lufthansa, against which the EU Commission has taken no action. Ryanair highlighted that this ongoing unlawful protection of flag carriers by their member state governments, which amounts to billions of euro, increasingly makes a mockery of the EU Commission's enforcement of the state aid rules. The EU Commission meanwhile said the complaint from Ryanair will be addressed in the same meticulous way as any other it receives, The Associated Press reported. About Alitalia Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million in 2006, and EUR494.64 million in 2007. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. =================== K A Z A K H S T A N =================== ADIANA MACHINERY: Creditors Must File Claims by November 25 ----------------------------------------------------------- Branch of LLP Adiana Machinery Group has gone into liquidation. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: Branch of LLP Adiana Machinery Group Office 21 Imanov Str. 15 Almatinsky Astana Kazakhstan BIOS GOLD: Claims Deadline Slated for November 25 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Bios Gold insolvent. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan KAMBAR & A: Claims Filing Period Ends November 21 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kambar & A insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 KAZSTROY-2005 LLP: Creditors' Claims Due on November 21 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Construction Company Kazstroy-2005 insolvent on Sept. 2, 2008. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Building of Auto Station Micro District 28 Aktau Mangistau Kazakhstan Tel: 8 (7292) 41-14-58 MEDIUS-M LLP: Claims Registration Ends November 21 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Medius-M insolvent on Sept. 19, 2008. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 ONTUSTIK-OYU LLP: Creditors Must File Claims by November 25 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Ontustik-Oyu insolvent on Sept. 16, 2008. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 RRC BUSINESS: Claims Deadline Slated for November 25 ---------------------------------------------------- Representation of Company RRC Business Telecommunication GmbH has gone into liquidation. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: Representation of Company RRC Business Telecommunication GmbH Micro District Samal-3, 12-4 Almaty Kazakhstan TRIO INTERNATIONAL: Claims Filing Period Ends November 25 --------------------------------------------------------- LLP Trio International has gone into liquidation. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: LLP Trio International Jeltoksan Str. 160-3 Almaty Kazakhstan ULDANA LLP: Creditors' Claims Due on November 25 ------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Audit Firm Uldana insolvent on Sept. 16, 2008. Creditors have until Nov. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 VOSTOK STROY: Claims Registration Ends November 18 -------------------------------------------------- LLP Construction Company Vostok Stroy Snub has gone into liquidation. Creditors have until Nov. 18, 2008, to submit written proofs of claims to: LLP Construction Company Vostok Stroy Snub Micro District 19, 73-42 Oktyabrsky Karaganda Kazakhstan =================== K Y R G Y Z S T A N =================== JALALABAT TRANS: Creditors Must File Claims by November 12 ---------------------------------------------------------- LLC Jalalabat Trans has shut down. Creditors have until Nov. 12, 2008, to submit written proofs of claim to: LLC Jalalabat Trans Abdrahmanov Str. 10 Jalalabat Kyrgyzstan ===================== N E T H E R L A N D S ===================== FORTIS: Moody's Cuts Sub. and Preferred Guarantees Ratings to Ba1 ----------------------------------------------------------------- Moody's Investors Service has downgraded Fortis SA/NV and Fortis N.V. long term issuer ratings to Baa2 from Baa1, and the ratings were placed under review for possible downgrade. Debt ratings benefiting from subordinated and preferred guarantees from the joint holding companies were downgraded to Baa3 and Ba1 respectively. Certain securities benefiting from joint and several guarantees from the holding companies and Fortis ASR Levensverzkering N.V. were confirmed at Baa3 with a developing outlook. Moody's also downgraded the insurance financial strength rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from A3, and the backed senior unsecured debt of Fortis Capital (Asia) Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These ratings now carry a developing outlook. The Group's CP rating was affirmed at P-2 and placed under review for possible downgrade. Summary The rating actions follow the announcement by the Belgian state of a number of actions with respect to Fortis' Belgium and Luxembourg operations, namely the full acquisition and subsequent sale (75% stake) to BNP Paribas of Fortis' Belgian banking operations and the sale of Fortis Insurance Belgium to BNP Paribas, and the acquisition of 66% of Fortis Bank Luxembourg by BNP Paribas. Fortis also holds a 66% stake in an SPV that will acquire certain structured assets from Fortis' banking operations, with the remaining 34% held by the Belgian state (24%) and BNP Paribas (10%). These transactions are subject to regulatory approvals. Consequently, the new Fortis Group (the Group)now consists solely of Fortis' existing international insurance operations (predominantly in Europe and Asia, including Fortis Insurance Company (Asia) Limited, rated Baa1 IFSR), as well as the Group's investment in the structured finance SPV. Furthermore the Group had historically issued various senior and hybrid securities from or guaranteed by the holding companies, then subsequently on-lent to the operating companies, and these obligations remain with the Group as well as the obligations from the operating companies to the Group. Moody's notes that the holding company ratings should ultimately reflect the combined financial strength of the insurance companies included in Fortis Insurance International, their ability to produce earnings for the benefit of the holding companies, and the holding company's subordinated position from these entities. Therefore, the ratings were placed under review for possible further downgrade, and Moody's mentioned that issuer ratings of Fortis SA/NV and Fortis N.V. could potentially be downgraded to below investment grade ratings at the conclusion of the review. Life Insurance Moody's said that the downgrade of FICA, Fortis Group's life insurance operation in Hong Kong, reflects the weakened level of support to FICA from its parent, which now has a much smaller operation, limited business diversification and weaker financial flexibility. The Baa1 IFSR of FICA now represents the stand-alone financial strength of the company, whose business and financial fundamentals remain solid and has not been materially impacted by the financial turmoil and ownership changes at Fortis Group and its banking operations. The outlook, on the other hand, is developing, reflecting the uncertainty surrounding the strategic direction of FICA under the new ownership structure as well as its relatively short operating history under Fortis Group. The backed senior debt rating of Fortis Capital (Asia) is one notch lower than the IFSR of FICA, given that the outstanding bonds of Fortis Capital (Asia) are fully and unconditionally guaranteed by FICA and the guarantee is effectively junior to the liabilities of the insurance policyholders. Holding Company Ratings Commenting on the holding company ratings, Moody's said that the rating action reflects the holding companies reliance going forwards on earnings from Fortis' international insurance businesses. Moody's notes that the majority of these insurance operations, with the exceptions of UK and Portugal, maintain modest positions in relatively small insurance markets, such that the level and sustainability of earnings from these businesses is likely to be modest in future (EUR181 million net income for 2007, excluding gains on the sale of CaiFor), and the Group's business overall shows a relatively unclear strategic direction. Compared with the diversity and quality of earnings previously available to the holding company, this represents a material change in the holding companies' credit quality, justifying the reduction in the holding companies' issuer ratings to Baa2 from Baa1. The rating agency notes that Fortis SA/NV and Fortis N.V. will receive over 14 billion in cash (which Moody's expects to be used to repay the Group's existing senior debts), while the hybrid debts which were previously used to provide financing to the various operating companies of the Group are still economically matched by loans to these entities. More negatively, the holding company holds an investment in a structured portfolio, whose ultimate value is still uncertain and is likely to remain so for some time. Overall however, Moody's regards the Group's existing debt securities as having material collateral backing. Instruments Backed by Fortis SA/NV Moody's also downgraded (senior to Baa2; subordinated to Baa3; preferred to Ba1) and placed under review for possible downgrade all the debt ratings of the securities issued from Fortis Finance N.V., Fortis Hybrid Financing and Fortfinlux S.A . These rating actions follow the rating action taken on the long-term issuer ratings of Fortis SA/NV and Fortis N.V. since all these securities are guaranteed by the holding companies of the Fortis Group. Commenting further on the securities issued by Fortfinlux S.A. (FRESH and MCS) and Fortis Hybrid Financing, the rating agency mentioned that the respective mandatory convertible and junior / preferred status of these securities could imply higher levels of loss as the Fortis Group profile deteriorates, and Moody's review will also consider whether any additional notching is necessary for these junior instruments. In addition, Moody's has confirmed the Baa3 rating of the securities issued by Fortis Floating Rate Capital Funding Trust, Fortis Fixed Rate Quarterly Capital Funding Trust, Fortis Fixed Rate Annual Capital Funding Trust and Fortis Capital Funding LLP, and assigned a developing outlook to these ratings. This rating action reflects the subordinated guarantee provided by Fortis ASR Levensverzekering N.V. (A3 insurance financial strength rating with a developing outlook) to these securities in addition to guarantees from the holding companies, and the seniority of this guarantee which will rank pari passu with preference shares of the insurance company in case of liquidation. Short-term Rating Moody's rating on the Group's CP (P-2 under review for possible downgrade) reflects the high level of illiquidity of the Group's investments in structured assets as well as the dramatic reduction of recurrent revenues coming from the operating companies following the various divestments. The short-term rating is also a reflection of the Group's long-term ratings. Furthermore, although Moody's acknowledges the current high level of cash available within the holding companies, the ultimate cash position of the Group remains uncertain. The review will be concluded in conjunction with the review of long-term ratings. Detailed summary of rating actions: Ratings downgraded and assigned a developing outlook: -- Fortis Insurance Company (Asia) Limited � insurance financial strength rating at Baa1 from A3 -- Fortis Capital (Asia) Limited -- backed senior unsecured debt rating at Baa2 from Baa1 Ratings downgraded and placed under review for possible downgrade: -- Fortis SA/NV -- long term issuer rating at Baa2 from Baa1 -- Fortis N.V. - long term issuer rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed senior unsecured debt rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed senior unsecured MTN debt rating at Baa2 from Baa1 -- Fortis Finance N.V. -- backed subordinated MTN debt rating at Baa3 from Baa2 -- Fortis Finance N.V. -- backed junior subordinated MTN debt rating at Baa3 from Baa2 -- Fortis Hybrid Financing -- backed junior subordinated debt rating at Ba1 from Baa3 -- Fortis Hybrid Financing -- backed preferred stock debt rating at Ba1 from Baa3 -- Fortfinlux S.A. -- backed junior subordinated debt rating at Ba1 from Baa3 Ratings affirmed and placed under review for possible downgrade: -- Fortis Finance N.V. -- backed commercial paper at P-2 The following ratings have been confirmed and assigned a developing outlook: -- Fortis Floating Rate Capital Funding Trust � backed preferred stock -- Fortis Fixed Rate Quarterly Capital Funding Trust -- backed preferred stock -- Fortis Fixed Rate Annual Capital Funding Trust -- backed preferred stock -- Fortis Capital Funding LLP -- backed preferred stock The date of the prior rating action on Fortis Group's ratings was on Sept. 30, 2008, when Moody's downgraded Fortis' ratings following the announcement of a capital injection of EUR11.2 billion in Fortis Bank SA/NV, Fortis Bank Nederland (Holding) and Fortis Bank Luxembourg by the states of Belgium, the Netherlands and Luxembourg. Headquartered in Brussels, Belgium and in Utrecht, the Netherlands, Fortis Group had total assets of EUR974.3 billion and reported shareholders' equity (including minority interest) of EUR30.4 billion as of June 30, 2008. =========== N O R W A Y =========== RADIANT: Completes US$1MM Settlement with Innovations Norway ------------------------------------------------------------ Radiant Energy Corporation completed a settlement agreement with Innovations Norway regarding an outstanding principal and interest payment of US$1,063,268 or NOK6,357,763 on behalf of its Norwegian subsidiary, Radiant Aviation Services Europe AS, which was in default on loans owing to Innovations Norway and for which repayment had been demanded. The loans were settled by a payment of US$44,318 or NOK265,000 in cash and the issuance of 3,658,987 common shares of the company. Innovations Norway will also receive the proceeds from the disposal of the company's deicing facility in Oslo, estimated to be US$167,239 or NOK1,000,000. The common shares issued as a result of this agreement are subject to a four-month hold period expiring Feb. 3, 2009. Based in Port Colborne, Ontario, Radiant Energy Corp. (TSX: RDT) - - http://www.radiantenergycorp.com/-- through its wholly owned subsidiary Radiant Aviation Services developed and sells the only infrared alternative to traditional glycol-based aircraft deicing. Its fully patented InfraTek(R) systems are approved for use by the FAA. Before the introduction of InfraTek, spraying with glycol was the only feasible method to satisfy FAA safety guidelines for ensuring that aircraft are properly deiced before take-off. At April 30, 2008, the company's balance sheet showed total assets of US$3.5 million and total liabilities of US$6.0 million resulting in a total shareholders' deficit of approximately US$2.5 million. =========== P O L A N D =========== GENERAL MOTORS: Opel to Cut Production in Europe by 40,000 Cars --------------------------------------------------------------- Dow Jones Newswires reports that General Motors Corp.'s Opel brand will cut production in Europe by 40,000 cars by year-end due to declining demand. Dow Jones relates that an Opel spokesperson said that the company will lessen production at its German plants in Bochum and Eisenach to not build up inventory, which would hurt prices for new cars. According to Business.techwhack.com, GM already shut down the Bochum factory, which would remain down until Oct. 13. GM said that production at their plant in Eisenach would stop from Oct. 13 for three weeks, Business.techwhack.com states. The spokesperson, according to Dow Jones, said that GM Europe is also discussing about reducing production at its U.K. and Spain plants. The Opel plant in Gliwice, Poland, will stop production for 20 days, reducing production by 15,000 cars at the Gliwice plant, Przemyslaw Byszewski told TVN CNBC television. Dow Jones quoted Mr. Byszewski as saying, "Our daily output has recently averaged 700 units a day and we're talking about a 20-day shutdown." 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 June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. STOCZNIA GDYNIA: Fears Stir Up Over Rejected Rescue --------------------------------------------------- Poland battled to save its ailing state-owned shipyards, Gdynia, Gdansk and Szczecin, as fears rose that the European Commission was preparing to issue a negative ruling over a rescue package because it would require too much government aid, The Financial Times says. Treasury minister Aleksander Grad wrote to Neelie Kroes, the European Union's competition commissioner, and to Jose Manuel Barroso, the Commission president, asking Brussels to detail any misgivings about the rescue plan that was presented to the Commission on September 12, FT notes. Mr. Grad had met Ms. Kroes, after which the Polish minister expressed doubt that Brussels was prepared to accept the restructuring plan, according to the report. FT comments that the two sides differed widely on the acceptable level of state aid needed to restructure the three shipyards. Warsaw, Poland wants to pump an additional PLN1.2 billion (US$496 million, EUR353 million, GBP279 million) into the failing yards in conjunction with investment from private companies. The Commission is examining whether the yards have improperly received as much as EUR2.6 billion in state aid dating back to Poland's 2004 entry into the EU, FT reports. The yards, which have not made a profit in years, would be forced into bankruptcy if they had to repay past aid, FT says. Based on the report, the Commission is most concerned about the restructuring plans for the Gdynia and Szczecin yards, which are still in state hands. Commission officials said the plans for Gdansk, which was recently privatized and now belongs to Ukraine's Industrial Union of the Donbass, are on a slightly separate track, FT says. Officials said that Ms. Kroes had told Mr. Grad that the government was "very welcome" to resubmit plans for that business in the future. However, FT says officials in Brussels were politely dismissive about Mr Grad's call for an independent expert review of the plans, pointing out that the Commission itself was an independent expert body on competition matters. The Commission's verdict is expected in a few weeks. About Stocznia Gdynia Located in Port of Gdynia, Poland, Stocznia Gdynia S.A. -- http://www.stocznia.gdynia.pl/-- engages in the construction of ships, partly equipped hulls, ship's sections, superstructures, and steel constructions. The company also engages in the production and distribution of technical gases, hot water, and steam, as well as research and development works in technical studies. About Gdansk Headquartered in Gdansk, Poland, Gdansk Shipyard -- http://www.stocznia.gda.pl/En-- is one of the biggest shipyards in Poland. It was previously known as Lenin Shipyard during the times of the People's Republic of Poland. The site was the birthplace of the country's Solidarity movement in September 1980. About Stocznia Szczecinska Headquartered in Szczecin, Poland, Stocznia Szczecinska Nowa Sp. z o.o. -- http://www.ssn.pl/-- specialized in the construction of container, chemicals transport, multi-purpose and Con-Ro ships. The company has been in insolvency after experiencing substantial reduction of new ship orders, sharp price decline, and several years of high exchange rate between the Polish zloty and U.S. dollar. =========== R U S S I A =========== BANK SOYUZ: S&P Places 'B' Counterparty Credit Rating On WatchNeg ----------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B' long-term counterparty credit and 'ruA-' Russia national scale ratings on Russian Bank Soyuz and its affiliate Element Leasing LLC on CreditWatch with negative implications. The 'C' short-term counterparty ratings on both entities were affirmed. "The CreditWatch placement on Bank Soyuz reflects the increased risks to its creditworthiness caused by the bank's tight liquidity position and large securities trading losses," said S&P's credit analyst Eugene Tarzimanov. It remains unclear if Soyuz has received extraordinary financial support from its sole shareholder -- the Basic Element group (not rated) -- to mitigate these risks. These negative factors severely test S&P's confidence in the bank's ability to fund itself in the market. The CreditWatch placement on Element Leasing mirrors that on Soyuz. Element Leasing derives about one-third of its funding from Soyuz and is also owned by Basic Element. "The CreditWatch placement will be resolved when detailed information is available to assess Bank Soyuz's and Element Leasing's liquidity, capitalization, profitability, and the level of tangible financial support from Basic Element," said Mr. Tarzimanov. ELEMENT LEASING: S&P Puts B Counterparty Credit Rating On WatchNeg ------------------------------------------------------------------ Standard & Poor's Ratings Services has placed its 'B' long-term counterparty credit and 'ruA-' Russia national scale ratings on Russian Bank Soyuz and its affiliate Element Leasing LLC on CreditWatch with negative implications. The 'C' short-term counterparty ratings on both entities were affirmed. "The CreditWatch placement on Bank Soyuz reflects the increased risks to its creditworthiness caused by the bank's tight liquidity position and large securities trading losses," said S&P's credit analyst Eugene Tarzimanov. It remains unclear if Soyuz has received extraordinary financial support from its sole shareholder -- the Basic Element group (not rated) -- to mitigate these risks. These negative factors severely test S&P's confidence in the bank's ability to fund itself in the market. The CreditWatch placement on Element Leasing mirrors that on Soyuz. Element Leasing derives about one-third of its funding from Soyuz and is also owned by Basic Element. "The CreditWatch placement will be resolved when detailed information is available to assess Bank Soyuz's and Element Leasing's liquidity, capitalization, profitability, and the level of tangible financial support from Basic Element," said Mr. Tarzimanov. NIZHNETAGILSKOE FREIGHT: Creditors Must File Claims by Oct. 26 -------------------------------------------------------------- Creditors of OJSC Nizhnetagilskoe Freight Motor Transport Enterprise (TIN 6669001528) have until Oct. 26, 2008, to submit proofs of claims to: N. Ivshina Post User Box 32 Slobodskoy 613150 Kirovskaya Russia The Arbitration Court of Kirovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-3973/2008-162/19. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Russia The Debtor can be reached at: OJSC Nizhnetagilskoe Freight Motor Transport Enterprise Chapayeva Str. 18/75 610035 Kirov Russia SIB-LES-PERERABOTKA: Creditors Must File Claims by October 26 ------------------------------------------------------------- Creditors of LLC Sib-Les-Pererabotka have until Oct. 26, 2008, to submit proofs of claims to: I. Osipov Temporary Insolvency Manager 4th Zheleznodorozhnaya Str. 52/2 664039 Irkutsk Russia The Arbitration Court of Irkutsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A19�8630/08�63. The Court is located at: The Arbitration Court of Irkutsk Room 303 Gagarina Avenue 70 664025 Irkutsk Russia SOUTHERN TELECOM: S&P Shifts Outlook to Stable; Retains 'B' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered the rating on one Russian company and revised the outlooks on four others following a review of the country's corporate and infrastructure issuers. The long-term corporate credit rating on steel pipe producer OAO TMK was lowered to 'B+' from 'BB-'. The outlook is stable. The Russia national scale rating was lowered to 'ruA+' from 'ruAA-'. The outlook on property development group CJSC SSMO LenSpecSMU was revised to stable from positive. The 'B' long-term and 'B' short- term corporate credit ratings and the 'ruA' Russia national scale rating were affirmed. The outlook on telecoms operator Southern Telecommunications Co. (OJSC) was revised to stable from positive. The 'B' long-term corporate credit rating was affirmed. The national scale rating was lowered to 'ruA-' from 'ruA'. The outlook on telecoms operator VolgaTelecom (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings were afirmed. The outlook on telecoms operator Uralsvyazinform (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit rating was affirmed. S&P's decision to review the sector follows significant turbulence in the Russian and global equity and credit markets in recent weeks. The review focused on the liquidity positions of individual issuers and their possible funding requirements and was specifically undertaken because of the high dependence on relationships, as opposed to firm contractual arrangements, in Russia's highly volatile and confidence-dependent credit markets. In conducting the review, S&P focused on each issuer's: Balance- sheet situation in terms of short-term financial obligations maturing within the next twelve months. Liquidity arrangements, including undrawn committed lines from relatively strong banks. Closeness to the government and/or to banks that the government appears to use most as channels to support bank market liquidity. This implies a greater ability and willingness to maintain or increase lending, if on a somewhat short-term basis. Strategic importance to the economy and expected access to revolving secured trade finance, for example, in the case of commodity exporters of oil and metals. Level of attention to treasury risk management and plans to raise or maintain liquidity. While its ratings across all sectors in Russia have long taken into account liquidity and institutional risks, S&P has factored in the increased importance in the currently stressed environment of: * Free cash flow generation, net of all cash needs and the primary basis for S&P's liquidity analysis, may be impacted by softening growth as well as sharp and hard to predict working capital changes in certain sectors; * The most reliable liquidity lines are those that are undrawn, committed to the extent possible in Russia, and from top- tier, large, state-controlled domestic banks such as Sberbank (unrated), Bank VTB (BBB+/Stable/ A-2), Gazprombank (BBB- /Stable/A-3) and potentially Vnesheconombank (foreign currency: BBB+/WatchNeg/A-2, local currency: A-/Watch Neg/A- 2), or from the few international banks that to date appear to have maintained an appetite for corporate lending in the country. Significant government support for these institutions has been evident in recent government actions to stabilize the broader financial markets. While government initiatives have been more substantial and proactive than in past crises, S&P is cautious in assuming that intended support will reach all corners of the markets effectively. S&P has assumed that put options, a common feature of Russian bonds, are likely to be exercised to an even greater extent than in the past, when market confidence was much stronger and interest rates were lower. In addition, covenant breaches may now be more difficult to renegotiate. S&P's ratings and outlooks on other Russian corporate and infrastructure issuers are unchanged at this stage. In some cases this was due to S&P's confidence in well-advanced plans to access additional liquidity lines maturing within weeks. If such plans fail, additional rating actions could take place. S&P's previously announced decision to refocus its rating and outlook horizons for high-yield credits to two years and one year, respectively, may lead to more frequent outlook revisions and rating changes. S&P will continue to monitor general market conditions and the liquidity of individual rated companies. In particular S&P will focus on companies' near-term actions and level of success in securing financing for near and medium-term needs. Given the current situation in the domestic and global bond and equity markets, and disregarding longer-term ability to improve liquidity by curtailing capital spending and/or dividends, such near-term actions are most likely to involve approval of further lines of financing. SSMO LENSPECSMU: S&P Revises Outlook to Stable; Affirms 'B' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered the rating on one Russian company and revised the outlooks on four others following a review of the country's corporate and infrastructure issuers. The long-term corporate credit rating on steel pipe producer OAO TMK was lowered to 'B+' from 'BB-'. The outlook is stable. The Russia national scale rating was lowered to 'ruA+' from 'ruAA-'. The outlook on property development group CJSC SSMO LenSpecSMU was revised to stable from positive. The 'B' long-term and 'B' short- term corporate credit ratings and the 'ruA' Russia national scale rating were affirmed. The outlook on telecoms operator Southern Telecommunications Co. (OJSC) was revised to stable from positive. The 'B' long-term corporate credit rating was affirmed. The national scale rating was lowered to 'ruA-' from 'ruA'. The outlook on telecoms operator VolgaTelecom (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings were afirmed. The outlook on telecoms operator Uralsvyazinform (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit rating was affirmed. S&P's decision to review the sector follows significant turbulence in the Russian and global equity and credit markets in recent weeks. The review focused on the liquidity positions of individual issuers and their possible funding requirements and was specifically undertaken because of the high dependence on relationships, as opposed to firm contractual arrangements, in Russia's highly volatile and confidence-dependent credit markets. In conducting the review, S&P focused on each issuer's: Balance- sheet situation in terms of short-term financial obligations maturing within the next twelve months. Liquidity arrangements, including undrawn committed lines from relatively strong banks. Closeness to the government and/or to banks that the government appears to use most as channels to support bank market liquidity. This implies a greater ability and willingness to maintain or increase lending, if on a somewhat short-term basis. Strategic importance to the economy and expected access to revolving secured trade finance, for example, in the case of commodity exporters of oil and metals. Level of attention to treasury risk management and plans to raise or maintain liquidity. While its ratings across all sectors in Russia have long taken into account liquidity and institutional risks, S&P has factored in the increased importance in the currently stressed environment of: * Free cash flow generation, net of all cash needs and the primary basis for S&P's liquidity analysis, may be impacted by softening growth as well as sharp and hard to predict working capital changes in certain sectors; * The most reliable liquidity lines are those that are undrawn, committed to the extent possible in Russia, and from top- tier, large, state-controlled domestic banks such as Sberbank (unrated), Bank VTB (BBB+/Stable/ A-2), Gazprombank (BBB- /Stable/A-3) and potentially Vnesheconombank (foreign currency: BBB+/WatchNeg/A-2, local currency: A-/Watch Neg/A- 2), or from the few international banks that to date appear to have maintained an appetite for corporate lending in the country. Significant government support for these institutions has been evident in recent government actions to stabilize the broader financial markets. While government initiatives have been more substantial and proactive than in past crises, S&P is cautious in assuming that intended support will reach all corners of the markets effectively. S&P has assumed that put options, a common feature of Russian bonds, are likely to be exercised to an even greater extent than in the past, when market confidence was much stronger and interest rates were lower. In addition, covenant breaches may now be more difficult to renegotiate. S&P's ratings and outlooks on other Russian corporate and infrastructure issuers are unchanged at this stage. In some cases this was due to S&P's confidence in well-advanced plans to access additional liquidity lines maturing within weeks. If such plans fail, additional rating actions could take place. S&P's previously announced decision to refocus its rating and outlook horizons for high-yield credits to two years and one year, respectively, may lead to more frequent outlook revisions and rating changes. S&P will continue to monitor general market conditions and the liquidity of individual rated companies. In particular S&P will focus on companies' near-term actions and level of success in securing financing for near and medium-term needs. Given the current situation in the domestic and global bond and equity markets, and disregarding longer-term ability to improve liquidity by curtailing capital spending and/or dividends, such near-term actions are most likely to involve approval of further lines of financing. TMK OAO: S&P Cuts Long-Term Corporate Credit Rating to 'B+' ----------------------------------------------------------- Standard & Poor's Ratings Services has lowered the rating on one Russian company and revised the outlooks on four others following a review of the country's corporate and infrastructure issuers. The long-term corporate credit rating on steel pipe producer OAO TMK was lowered to 'B+' from 'BB-'. The outlook is stable. The Russia national scale rating was lowered to 'ruA+' from 'ruAA-'. The outlook on property development group CJSC SSMO LenSpecSMU was revised to stable from positive. The 'B' long-term and 'B' short- term corporate credit ratings and the 'ruA' Russia national scale rating were affirmed. The outlook on telecoms operator Southern Telecommunications Co. (OJSC) was revised to stable from positive. The 'B' long-term corporate credit rating was affirmed. The national scale rating was lowered to 'ruA-' from 'ruA'. The outlook on telecoms operator VolgaTelecom (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings were afirmed. The outlook on telecoms operator Uralsvyazinform (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit rating was affirmed. S&P's decision to review the sector follows significant turbulence in the Russian and global equity and credit markets in recent weeks. The review focused on the liquidity positions of individual issuers and their possible funding requirements and was specifically undertaken because of the high dependence on relationships, as opposed to firm contractual arrangements, in Russia's highly volatile and confidence-dependent credit markets. In conducting the review, S&P focused on each issuer's: Balance- sheet situation in terms of short-term financial obligations maturing within the next twelve months. Liquidity arrangements, including undrawn committed lines from relatively strong banks. Closeness to the government and/or to banks that the government appears to use most as channels to support bank market liquidity. This implies a greater ability and willingness to maintain or increase lending, if on a somewhat short-term basis. Strategic importance to the economy and expected access to revolving secured trade finance, for example, in the case of commodity exporters of oil and metals. Level of attention to treasury risk management and plans to raise or maintain liquidity. While its ratings across all sectors in Russia have long taken into account liquidity and institutional risks, S&P has factored in the increased importance in the currently stressed environment of: * Free cash flow generation, net of all cash needs and the primary basis for S&P's liquidity analysis, may be impacted by softening growth as well as sharp and hard to predict working capital changes in certain sectors; * The most reliable liquidity lines are those that are undrawn, committed to the extent possible in Russia, and from top- tier, large, state-controlled domestic banks such as Sberbank (unrated), Bank VTB (BBB+/Stable/ A-2), Gazprombank (BBB- /Stable/A-3) and potentially Vnesheconombank (foreign currency: BBB+/WatchNeg/A-2, local currency: A-/Watch Neg/A- 2), or from the few international banks that to date appear to have maintained an appetite for corporate lending in the country. Significant government support for these institutions has been evident in recent government actions to stabilize the broader financial markets. While government initiatives have been more substantial and proactive than in past crises, S&P is cautious in assuming that intended support will reach all corners of the markets effectively. S&P has assumed that put options, a common feature of Russian bonds, are likely to be exercised to an even greater extent than in the past, when market confidence was much stronger and interest rates were lower. In addition, covenant breaches may now be more difficult to renegotiate. S&P's ratings and outlooks on other Russian corporate and infrastructure issuers are unchanged at this stage. In some cases this was due to S&P's confidence in well-advanced plans to access additional liquidity lines maturing within weeks. If such plans fail, additional rating actions could take place. S&P's previously announced decision to refocus its rating and outlook horizons for high-yield credits to two years and one year, respectively, may lead to more frequent outlook revisions and rating changes. S&P will continue to monitor general market conditions and the liquidity of individual rated companies. In particular S&P will focus on companies' near-term actions and level of success in securing financing for near and medium-term needs. Given the current situation in the domestic and global bond and equity markets, and disregarding longer-term ability to improve liquidity by curtailing capital spending and/or dividends, such near-term actions are most likely to involve approval of further lines of financing. TRANSOIL COMPANY: Creditors Must File Claims by October 26 ---------------------------------------------------------- Creditors of LLC Transoil Company have until Oct. 26, 2008, to submit proofs of claims to: M. Azizov Temporary Insolvency Manager Post User Box 670 420032 Kazan Russia The Arbitration Court of Tatarstan will convene at 1:30 p.m. on Nov. 17, 2008, to hear the company's bankruptcy supervision procedure. The Case is docketed under Case No. A65�11684/ 2008�SG4�35. The Court is located at: The Arbitration Court of Tatarstan Hall 13 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: LLC Transoil Company Sh. Usmanova Str. 32A Kazan Tatarstan Russia URALSVYAZINFORM OJSC: S&P Shifts Outlook to Neg.; Holds BB- Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered the rating on one Russian company and revised the outlooks on four others following a review of the country's corporate and infrastructure issuers. The long-term corporate credit rating on steel pipe producer OAO TMK was lowered to 'B+' from 'BB-'. The outlook is stable. The Russia national scale rating was lowered to 'ruA+' from 'ruAA-'. The outlook on property development group CJSC SSMO LenSpecSMU was revised to stable from positive. The 'B' long-term and 'B' short- term corporate credit ratings and the 'ruA' Russia national scale rating were affirmed. The outlook on telecoms operator Southern Telecommunications Co. (OJSC) was revised to stable from positive. The 'B' long-term corporate credit rating was affirmed. The national scale rating was lowered to 'ruA-' from 'ruA'. The outlook on telecoms operator VolgaTelecom (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings were afirmed. The outlook on telecoms operator Uralsvyazinform (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit rating was affirmed. S&P's decision to review the sector follows significant turbulence in the Russian and global equity and credit markets in recent weeks. The review focused on the liquidity positions of individual issuers and their possible funding requirements and was specifically undertaken because of the high dependence on relationships, as opposed to firm contractual arrangements, in Russia's highly volatile and confidence-dependent credit markets. In conducting the review, S&P focused on each issuer's: Balance- sheet situation in terms of short-term financial obligations maturing within the next twelve months. Liquidity arrangements, including undrawn committed lines from relatively strong banks. Closeness to the government and/or to banks that the government appears to use most as channels to support bank market liquidity. This implies a greater ability and willingness to maintain or increase lending, if on a somewhat short-term basis. Strategic importance to the economy and expected access to revolving secured trade finance, for example, in the case of commodity exporters of oil and metals. Level of attention to treasury risk management and plans to raise or maintain liquidity. While its ratings across all sectors in Russia have long taken into account liquidity and institutional risks, S&P has factored in the increased importance in the currently stressed environment of: * Free cash flow generation, net of all cash needs and the primary basis for S&P's liquidity analysis, may be impacted by softening growth as well as sharp and hard to predict working capital changes in certain sectors; * The most reliable liquidity lines are those that are undrawn, committed to the extent possible in Russia, and from top- tier, large, state-controlled domestic banks such as Sberbank (unrated), Bank VTB (BBB+/Stable/ A-2), Gazprombank (BBB- /Stable/A-3) and potentially Vnesheconombank (foreign currency: BBB+/WatchNeg/A-2, local currency: A-/Watch Neg/A- 2), or from the few international banks that to date appear to have maintained an appetite for corporate lending in the country. Significant government support for these institutions has been evident in recent government actions to stabilize the broader financial markets. While government initiatives have been more substantial and proactive than in past crises, S&P is cautious in assuming that intended support will reach all corners of the markets effectively. S&P has assumed that put options, a common feature of Russian bonds, are likely to be exercised to an even greater extent than in the past, when market confidence was much stronger and interest rates were lower. In addition, covenant breaches may now be more difficult to renegotiate. S&P's ratings and outlooks on other Russian corporate and infrastructure issuers are unchanged at this stage. In some cases this was due to S&P's confidence in well-advanced plans to access additional liquidity lines maturing within weeks. If such plans fail, additional rating actions could take place. S&P's previously announced decision to refocus its rating and outlook horizons for high-yield credits to two years and one year, respectively, may lead to more frequent outlook revisions and rating changes. S&P will continue to monitor general market conditions and the liquidity of individual rated companies. In particular S&P will focus on companies' near-term actions and level of success in securing financing for near and medium-term needs. Given the current situation in the domestic and global bond and equity markets, and disregarding longer-term ability to improve liquidity by curtailing capital spending and/or dividends, such near-term actions are most likely to involve approval of further lines of financing. URENSKIY FLAX: Creditors Must File Claims by October 26 ------------------------------------------------------- Creditors of LLC Urenskiy Flax have until Oct. 26, 2008, to submit proofs of claims to: K. Volkov Office 2 Nevzorovyukh Str. 89 603024 Nizhny Novgorod Russia The Arbitration Court of Nixhegorodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43�20362/2008 33�128. The Debtor can be reached at: LLC Urenskiy Flax Lnozavod Str. 1a Uren Nizhegorodskaya Russia VOLGATELECOM OJSC: S&P Revises Outlook to Neg.; Keeps 'BB-' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered the rating on one Russian company and revised the outlooks on four others following a review of the country's corporate and infrastructure issuers. The long-term corporate credit rating on steel pipe producer OAO TMK was lowered to 'B+' from 'BB-'. The outlook is stable. The Russia national scale rating was lowered to 'ruA+' from 'ruAA-'. The outlook on property development group CJSC SSMO LenSpecSMU was revised to stable from positive. The 'B' long-term and 'B' short- term corporate credit ratings and the 'ruA' Russia national scale rating were affirmed. The outlook on telecoms operator Southern Telecommunications Co. (OJSC) was revised to stable from positive. The 'B' long-term corporate credit rating was affirmed. The national scale rating was lowered to 'ruA-' from 'ruA'. The outlook on telecoms operator VolgaTelecom (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit and 'ruAA-' Russia national scale ratings were afirmed. The outlook on telecoms operator Uralsvyazinform (OJSC) was revised to negative from stable. The 'BB-' long-term corporate credit rating was affirmed. S&P's decision to review the sector follows significant turbulence in the Russian and global equity and credit markets in recent weeks. The review focused on the liquidity positions of individual issuers and their possible funding requirements and was specifically undertaken because of the high dependence on relationships, as opposed to firm contractual arrangements, in Russia's highly volatile and confidence-dependent credit markets. In conducting the review, S&P focused on each issuer's: Balance- sheet situation in terms of short-term financial obligations maturing within the next twelve months. Liquidity arrangements, including undrawn committed lines from relatively strong banks. Closeness to the government and/or to banks that the government appears to use most as channels to support bank market liquidity. This implies a greater ability and willingness to maintain or increase lending, if on a somewhat short-term basis. Strategic importance to the economy and expected access to revolving secured trade finance, for example, in the case of commodity exporters of oil and metals. Level of attention to treasury risk management and plans to raise or maintain liquidity. While its ratings across all sectors in Russia have long taken into account liquidity and institutional risks, S&P has factored in the increased importance in the currently stressed environment of: * Free cash flow generation, net of all cash needs and the primary basis for S&P's liquidity analysis, may be impacted by softening growth as well as sharp and hard to predict working capital changes in certain sectors; * The most reliable liquidity lines are those that are undrawn, committed to the extent possible in Russia, and from top- tier, large, state-controlled domestic banks such as Sberbank (unrated), Bank VTB (BBB+/Stable/ A-2), Gazprombank (BBB- /Stable/A-3) and potentially Vnesheconombank (foreign currency: BBB+/WatchNeg/A-2, local currency: A-/Watch Neg/A- 2), or from the few international banks that to date appear to have maintained an appetite for corporate lending in the country. Significant government support for these institutions has been evident in recent government actions to stabilize the broader financial markets. While government initiatives have been more substantial and proactive than in past crises, S&P is cautious in assuming that intended support will reach all corners of the markets effectively. S&P has assumed that put options, a common feature of Russian bonds, are likely to be exercised to an even greater extent than in the past, when market confidence was much stronger and interest rates were lower. In addition, covenant breaches may now be more difficult to renegotiate. S&P's ratings and outlooks on other Russian corporate and infrastructure issuers are unchanged at this stage. In some cases this was due to S&P's confidence in well-advanced plans to access additional liquidity lines maturing within weeks. If such plans fail, additional rating actions could take place. S&P's previously announced decision to refocus its rating and outlook horizons for high-yield credits to two years and one year, respectively, may lead to more frequent outlook revisions and rating changes. S&P will continue to monitor general market conditions and the liquidity of individual rated companies. In particular S&P will focus on companies' near-term actions and level of success in securing financing for near and medium-term needs. Given the current situation in the domestic and global bond and equity markets, and disregarding longer-term ability to improve liquidity by curtailing capital spending and/or dividends, such near-term actions are most likely to involve approval of further lines of financing. YAMAL-PETROIL CJSC: Creditors Must File Claims by October 26 ------------------------------------------------------------ Creditors of CJSC Yamal-Petroil have until Oct. 26, 2008, to submit proofs of claims to: S. Abyshev Temporary Insolvency Manager Office 455 Melnikayte Str. 106 Tumen Russia The Arbitration Court of Tumen will convene at 9:00 a.m. on Jan. 13, 2009, to hear bankruptcy supervision procedure. The Case is docketed under Case No. A-70-4027/3-2008. ========= S P A I N ========= * SPAIN: To Raise Guarantees on Bank Deposits --------------------------------------------- The Spanish government will raise its guarantees on bank deposits with immediate effect, The Wall Street Journal reports, citing Christopher Bjork of Dow Jones Newswires as its source. The government, however, didn't say by how how much the guarantees on deposits would be increased, the report says. Spain, the report discloses, currently guarantees deposits for up to EUR20,000 for any account holder in a single bank. The report notes that while companies are complaining they are suffering because banks have sharply reined in credit, the government insisted the country's banking system is healthy, with no institutions in need of special assistance. =========== S W E D E N =========== VOLVO CAR: Mulls Additional 4,000 Job Cuts on Slumping Car Sector ----------------------------------------------------------------- Ford Motor Company's unit, Volvo Car Corporation, said it will initiate further structural changes in all parts of the business to meet the rapidly deteriorating market situation in the global car industry. The total redundancy actions now planned to be initiated account for 6,000 people or 25% of its workforce worldwide, of which 1,200 are consultants. On June 25, Volvo initially announced the reduction of 2,000 people, including 500 consultants. The International Herald Tribune cites Bloomberg News as stating that in September, auto sales plunged 27% in the United States, and four of the European Union's five biggest car markets declined. On Oct. 8, 2008, the Swedish Public Employment Service was informed of additional redundancies affecting around 2,000 blue collar employees and 700 white collar employees in Sweden. Outside Sweden, an additional 600 employees will be made redundant and some 700 contracts with consultants will be terminated. "These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation -- a company with more focused operations and structure," says President and CEO of Volvo Car Corporation, Stephen Odell. "The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected," Mr. Odell continues. Volvo disclosed that a notice was handed October 8 to the Swedish Authorities includes 2,230 employees at Volvo Car Corporation in Gothenburg, 410 employees at Volvo Cars Body Components in Olofstr�m and 60 employees at the Volvo Cars Engine Plant in Sk�vde/Floby. The company is also planning a reduction of 600 people outside Sweden. In a press release dated September 12, Volvo estimated that approximately 900 blue collar employees would be affected. Given the turbulence in the world economy over the last few weeks, however, it is clear that further costs saving actions are necessary for the company to manage the difficult market situation. Volvo said the process to negotiate a new organization commenced on June 25. The announcement dated October 8 will delay these negotiations with the unions as it needs to be integrated with the previous plan. The new organization is expected to be in place by the end of the year. About Ford Motor 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 Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. About Volvo Car Gothenburg, Sweden-based Volvo Car Corporation (VCC) -- http://www.volvocars.com/-- manufactures cars. Models include the S Range, V Range, XC Range, and C Range. The bulk of the 450,000 Volvos manufactured each year are built in Sweden and Belgium, but the company also builds a few cars in Thailand, Malaysia, South Africa, and China. Volvos are sold in more than 100 markets through a network of some 2,300 dealers. Ford Motor purchased the Volvo automotive brand from Swedish truck maker AB Volvo in 1999. ===================== S W I T Z E R L A N D ===================== AMC MANAGEMENT: Creditors Must File Proofs of Claim by Oct. 24 -------------------------------------------------------------- Creditors owed money by LLC AMC Management are requested to file their proofs of claim by Oct. 24, 2008, to: Doris Brutsch Unterdorfstrasse 3 9508 Weingarten Switzerland The company is currently undergoing liquidation in Erlen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 15, 2006. DANU GUDEL: Deadline to File Proofs of Claim Set Oct. 24 -------------------------------------------------------- Creditors owed money by LLC Danu Gudel & Chauffeure are requested to file their proofs of claim by Oct. 24, 2008, to: Jegenstorfstrasse 11 3308 Zauggenried Switzerland The company is currently undergoing liquidation in Zauggenried. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 5, 2008. FT CONSULT: Creditors Have Until Oct. 23 to File Claims ------------------------------------------------------- Creditors owed money by JSC ft consult are requested to file their proofs of claim by Oct. 23, 2008, to: Schaffner Hanns-Peter Rigistrasse 56 6006 Luzern Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on March 17, 2008. G24SOLUTIONS LLC: Proofs of Claim Filing Deadline is Oct. 24 ------------------------------------------------------------ Creditors owed money by LLC g24 solutions are requested to file their proofs of claim by Oct. 24, 2008, to: Graben 5 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 25, 2008. GENERAL MOTORS: High Demand Cues Share Trading Blackout on Workers ------------------------------------------------------------------ General Motors Corporation disclosed in a Securities and Exchange Commission filing that on Sept. 30, 2008, it had suspended purchases of its common stock, par value US$1-2/3 per share, by employees in GM's Savings-Stock Purchase Plan and the Personal Savings Plan. All purchases of Common Stock under the Plans have been suspended because the Plans have now issued all of their registered shares of Common Stock. This suspension is the result of recent unexpectedly high demand among the Plans' participants due to increased employee interest and a lower market price for the Common Stock. The demand significantly exceeded the usual volume and exhausted the supply of registered stock more quickly than the administrators of the Plans foresaw. Because of this, GM was not able to provide advance notice of the suspension of purchases of Common Stock under the Plans or of the trading blackout. This trading blackout begins immediately and will end when GM files with the Securities and Exchange Commission a registration statement registering additional shares. GM expects to file a registration statement with the SEC during the week of Nov. 9, 2008. Plan participants, other than directors and officers, are not prevented from selling Common Stock through the Plans, or buying or selling Common Stock outside the Plans, during the blackout period. Based on the provisions of the Plans, these participants may also at any time exchange shares in the Common Stock Fund for other investment options or change their contribution election. The contributions of participants currently directed to the GM Common Stock Fund, will be invested in the default fund for the Plan in which they participate, unless they provide new instructions. This means that, until the temporary suspension for Common Stock purchases is removed, that contributions to the S-SPP will be invested in the Pyramis Strategic Balanced Commingled Pool investment option and that contributions to the PSP will be Invested In the Pyramis Active Lifecycle Commingled Pool Investment option closest to the year that the participant will attain the age of 65. On Sept. 30, 2008, GM sent a notice to its directors and executive officers informing them that a blackout period had commenced. During the blackout period, GM's directors and executive officers will be prohibited from directly acquiring, disposing of or transferring any equity securities of GM acquired by them in connection with their service or employment with GM in those capacities. 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 June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. SENN HOSPITALITY: Creditors' Proofs of Claim Due by Oct. 23 ----------------------------------------------------------- Creditors owed money by LLC SHS Senn Hospitality Services are requested to file their proofs of claim by Oct. 23, 2008, to: Romeo Hunn Ifangstrasse 19 5525 Fischbach-Goslikon Switzerland The company is currently undergoing liquidation in Fischbach- Goslikon AG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 23, 2008. STUTZ FINANZ: Oct. 25 Set as Deadline to File Claims --------------------------------------------------------------- Creditors owed money by JSC Stutz Finanz & Treuhand are requested to file their proofs of claim by Oct. 25, 2008, to: JSC OBT Rorschacher Strasse 63 9004 St. Gallen Switzerland The company is currently undergoing liquidation in Andelfingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 27, 2008. SUBCONTI TRADE: Creditors Must File Proofs of Claim by Oct. 25 -------------------------------------------------------------- Creditors owed money by Subconti Trade Ltd are requested to file their proofs of claim by Oct. 25, 2008, to: JSC STM Steuerberatung & Treuhand, Mettler Lowenstrasse 53 8021 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 17, 2008. YANGZOM JSC: Deadline to File Proofs of Claim Set Oct. 23 --------------------------------------------------------- Creditors owed money by JSC YANGZOM are requested to file their proofs of claim by Oct. 23, 2008, to: JSC Thalmann Treuhand Marktplatz 3 8570 Weinfelden Switzerland The company is currently undergoing liquidation in Kreuzlingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 8, 2008. ============= U K R A I N E ============= ANTEY LLC: Creditors Must File Claims by October 12 --------------------------------------------------- Creditors of LLC Antey (code EDRPOU 23536884) have until Oct. 12, 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 July 16, 2008. The case is docketed as 49/95-b. The Debtor can be reached at: LLC Antey Kikvidze Str. 13 01023 Kiev Ukraine CONCRETE CONSTRUCTIONS 5: Creditors Must File Claims by Oct. 12 --------------------------------------------------------------- Creditors of CJSC Concrete Constructions Plant 5 (code EDRPOU 01267722) have until Oct. 12, 2008, to submit proofs of claim to: Korchan Sergey Temporary Insolvency Manager Ap. 15 Petrovsky Str. 6/8 61002 Kharkov Ukraine Tel: 8(057)700-55-97 The Economic Court of Kharkov commenced bankruptcy supervision procedure on the company on Aug. 21, 2008. The case is docketed as B-50/130-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: CJSC Concrete Constructions Plant 5 50 years of USSR Avenue, 171 61060 Kharkov Ukraine DEEP LLC: Creditors Must File Claims by October 12 -------------------------------------------------- Creditors of LLC Deep (code EDRPOU 32874900) have until Oct. 12, 2008, to submit proofs of claim to: Komerzan Zinoviy Liquidator Of. 46 Teatralnaya Square 6 58000 Chernovcy Ukraine The Economic Court of Chernovcy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 10/158/b. The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Debtor can be reached at: LLC Deep Bogomolets Str. 7/5 58000 Chernovcy Ukriane KOTOVSK BREADRECEIVING: Creditors Must File Claims by October 12 ---------------------------------------------------------------- Creditors of Subsidiary Company Kotovsk Breadreceiving Enterprise (code EDRPOU 32364484) have until Oct. 12, 2008, to submit proofs of claim to: Gliadchenko Vladimir Liquidator Kirov Avenue 96/13 49055 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 26, 2008. The case is docketed as B 15/234-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: Subsidiary Company Kotovsk Breadreceiving Enterprise Dwelling District Topolia-3 B. 36 49041 Dnipropetrovsk Ukraine KRONPACKSERVICE LLC: Creditors Must File Claims by October 12 ------------------------------------------------------------- Creditors of LLC Kronpackservice (code EDRPOU 32974499) have until Oct. 12, 2008, to submit proofs of claim to: Gliadchenko Vladimir Liquidator Kirov Avenue 96/13 49055 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 27, 2008. The case is docketed as B 29/174-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Kronpackservice Dimitrov Str. 49, 38 Krivoy Rog 50027 Dnipropetrovsk Ukraine POLTAVA-DILO LTD: Creditors Must File Claims by October 11 ---------------------------------------------------------- Creditors of LLC Firm Poltava-Dilo Ltd (code EDRPOU 21072305) have until Oct. 11, 2008, to submit proofs of claim to: Zlenko Vitaliya Liquidator Balochnaya Str. 3 Makieyevka 86100 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 1, 2008. The case is docketed as 42/96B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Firm Poltava-Dilo Ltd Gurov Avenue 11 83055 Donetsk Ukraine SANATORIUM-PREVENTORIUM YUBILEYNY: Claims Filing Ends October 11 ---------------------------------------------------------------- Creditors of OJSC Osnastka Subsidiary Company Sanatorium- Preventorium Yubileyny (code EDRPOU 25087367) have until Oct. 11, 2008, to submit proofs of claim to: The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Economic Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 28, 2008. The case is docketed as 7/137-B. The Debtor can be reached at: OJSC Osnastka Subsidiary Company Sanatorium-` Preventorium Yubileyny Lutsk Str. 25 Novovolinsk 45403 Volin Ukraine SPARTAK OJSC: Creditors Must File Claims by October 12 ------------------------------------------------------ Creditors of OJSC Spartak (code EDRPOU 30561150) have until Oct. 12, 2008, to submit proofs of claim to: Zakorko Vadim Temporary Insolvency Manager Of. 412 Rybalko Str. 2 40011 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy supervision procedure on the company on Jan. 26, 2008. The case is docketed as 8/26-08. The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: OJSC Spartak Gagarin Str. 9 40030 Sumy Ukraine =========================== U N I T E D K I N G D O M =========================== ABBOTTS CREATIVE: Taps BDO Stoy to Administer Assets ---------------------------------------------------- Toby Scott Underwood and Francis Graham Newton of BDO Stoy Hayward LLP were appointed joint administrators of Abbotts Creative Print Ltd. (Company Number 00627236) on Sept. 22, 2008. AMERICAN INT'L: US$85BB Gov't Loan Is Bad Deal, Says Former CEO ------------------------------------------------------------- Judith Burns at Dow Jones Newswires reports that Maurice Greenberg, American International Group Inc.'s former chairperson and chief executive officer, claimed that the US$85 billion federal loan to the company is a bad deal for workers and shareholders, who might have been better off had the firm gone bankrupt. Liam Pleven at The Wall Street Journal relates that former AIG executives were invited to testify in a hearing at Capital Hill on Oct. 7 on how the company's financial problems worsened until the government had to lend the company some US$85 billion in September. Investigations were launched after AIG said in February that its outside auditors had found a "material weakness" in its accounting. Federal prosecutors and the Securities and Exchange Commission have been investigating whether individuals at AIG intentionally overstated the value of credit-default-swaps linked to subprime mortgages, WSJ says, citing sources. AIG said it is cooperating in regulatory and governmental reviews on all matters, WSJ relates. Dow Jones relates that Mr. Greenberg wasn't present at the hearing, but he sent prepared remarks on Tuesday to the House Government Oversight Committee. Dow Jones quoted the committee's chairperson Henry Waxman as saying, "Regrettably, Mr. Greenberg has told the committee that he is too ill to appear here today [Oct. 7]." Dow Jones reports that Mr. Greenberg said that under the agreement on the US$85 billion loan, AIG must pay interest on the entire amount even if it doesn't borrow the rest of the amount, encouraging the company to draw down all of the funds even if it does not need it. Dow Jones relates that Mr. Greeberg said in his testimony, "AIG will have no choice but to engage in a fire sale of profitable assets." According to Dow Jones, New York Insurance Department Superintendent Eric Dinallo told the House panel that AIG's collapse was due to a "liquidity problem." Dow Jones relates that AIG's problems started from its financial-products unit, which sold credit-default swaps, a kind of protection against bond issuers defaulting, which Mr. Greenberg claimed worked well under his watch but collapsed after he left the company in March 2005. Martin Sullivan, Mr. Greenberg's successor who left AIG in June, blamed the firm's downfall on a "global financial tsunami" that caused credit markets to freeze and required AIG to take unexpected write-downs on unrealized losses on credit-default swaps, Dow Jones says. Dow Jones relates that Robert Willumstad, who replaced Mr. Sullivan and led AIG until the US$85 billion loan, said that accounting rules and credit rating downgrades worsened AIG's problems. The Office of Thrift Supervision sent a letter to AIG's general counsel in March cited concerns about "corporate oversight" of the company's financial products unit, which PricewaterhouseCoopers, AIG's auditor, also reported, Dow Jones says, citing Mr. Waxman. According to Dow Jones, Mr. Waxman said that AIG had a weeklong retreat for executives at the St. Regis Resort in Monarch Beach, California, where rooms can cost more than US$1,000 a night, less than a week after the federal bailout. Copies of invoices distributed by the House committee indicated that AIG paid more than US$440,000, including almost US$7,000 for golf and US$23,000 in spa charges, Dow Jones says. AIG spokesperson Joseph Norton explained that the meeting was a recognition event planned last year to reward high-performing independent insurance agents who sell AIG products, a "standard practice" to motivate sales personnel, Dow Jones relates. Dow Jones reports that Lynn Turner, the Securitities and Exchange Commission's former chief accountant, told the House panel that he doesn't believe AIG was honest with its investors about its exposure tothe credit-default swaps market. AIG's CEO Edward Liddy and other current executives in the company were not on a list of witnesses invited to testify at the hearing, WSJ states. About American International Group Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. US$85,000,000,000 Federal Reserve Loan The Federal Reserve Bank of New York extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The Credit Facility provides for a 79.9% equity interest in AIG. The Credit Facility provides for an initial gross commitment fee of 2% of the total Credit Facility on the closing date. AIG, in a regulatory filing with the Securities and Exchange Commission, said it will pay a commitment fee on undrawn amounts at the rate of 8.5% per annum. Interest and the commitment fees are generally payable through an increase in the outstanding balance under the Credit Facility. Borrowings under the Credit Facility are conditioned on the NY Fed being reasonably satisfied with, among other things, AIG's corporate governance. AIG is required to repay the Credit Facility from, among other things, the proceeds of certain asset sales and issuances of debt or equity securities. These mandatory repayments permanently reduce the amount available to be borrowed under the Credit Facility. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services has revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and International Lease Finance Corp. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. The Troubled Company Reporter reported on Sept. 19, 2008 that that Edward Liddy replaced Robert Willumstad as AIG's CEO. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was US$13.16 billion, compared to net income of US$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. AMERICAN INT'L: S&P Revises CreditWatch to Neg. from Developing --------------------------------------------------------------- Standard & Poor's Ratings Services revised the CreditWatch status of its ratings on American International Group Inc. (NYSE:AIG; A- /Watch Neg/A-1) and AIG's guaranteed subsidiaries to negative from developing. Standard & Poor's also said that the ratings on most of AIG's insurance operating subsidiaries remain on CreditWatch with developing implications. The 'A-/A-1' counterparty credit rating on AIG relies on the significant support from the US$85 billion borrowing facility provided by the Federal Reserve Bank of New York. The facility provides liquidity, allowing the company and its subsidiaries to meet debt and other obligations while it implements its plan to sell various businesses. "The US$61 billion draw to date on the facility is much larger than we had previously anticipated," noted Standard & Poor's credit analyst Rodney A. Clark. "This has caused the scope of the planned business sales to exceed our expectations." The ratings on AIG and its guaranteed subsidiaries are on CreditWatch negative to indicate that there could be downward pressure because of S&P's view of the risks around the execution of the plan as well as the heavy debt-service requirements of a much smaller and less-diversified AIG. The current disruption in the credit markets could make it difficult to sell businesses at attractive valuations. Over the longer term, S&P expects that the effects of the disposition--coupled with broader market-support actions, including the proposed Troubled Asset Relief Program, changes in mark-to-market accounting rules, and AIG's efforts to stem residential mortgage-based securities-related losses--will improve the available funds under the Fed borrowing facility. The 'A+' financial strength ratings on most of AIG's insurance operating subsidiaries reflect S&P's view of the strong competitive positions, earnings, and capital of those companies, somewhat offset by investment risk in their portfolios. Those ratings are on CreditWatch developing to indicate that they could be raised or lowered, depending on whether or not AIG sells them and, if it does, who the buyer is. "We will analyze the capital structure and business prospects of each potential subsidiary sale and make rating changes as necessary when those sales materialize," Mr. Clark added. "For the subsidiaries that are likely to remain part of AIG, the ratings will depend on the ongoing ability to attract and retain profitable business and on the capital structure of AIG once the corporate restructuring is completed." AVENT ENGINEERING: Appoints Joint Administrators from BDO Stoy -------------------------------------------------------------- Dermot Justine Power and Mark Roach of BDO Stoy Hayward LLP were appointed joint administrators of Avent Engineering Ltd. (Company Number 1895378) on Sept. 25, 2008. The company can be reached at: Avent Engineering Ltd. c/o BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD England BALLY TECH: Fitch Assigns 'BB+' Rating on US$300MM Facility ----------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to Bally Technologies, Inc.'s new US$300 million credit facility. The credit facility rating is two notches above Bally's 'BB-' Issuer Default Rating due to Fitch's view of strong over-collateralization of that debt. The Rating Outlook is Positive. The four-year credit facility consists of a US$75 million revolver and a US$225 million term loan, which continue to be secured by all domestic subsidiaries except the entity that holds Bally's interest in the Rainbow Casino in Vicksburg, Mississippi. The credit facility was initially priced at LIBOR+325 basis points and was used primarily to refinance its previous term loan that had US$290 million outstanding as of June 30, 2008. At closing of the transaction, Bally maintained US$25 million of undrawn availability on the new revolver. Notable financial covenants include: -- Leverage ratio: 2.5 times (x) through March 31, 2009, which drops to 2.25x through March 31, 2010 before hitting the floor at 2.0x through June 30, 2010; -- Fixed charge coverage ratio of 2.0x; -- Additional indebtedness: Bally is permitted to issue US$150 million of senior unsecured debt; -- Dividends: Bally is permitted to pay up to US$50 million annually in dividends if leverage is above 1.0x and up to US$70 million if leverage is below 1.0x. BATE GROUP: Brings in Joint Administrators from BDO Stoy -------------------------------------------------------- Dermot Justin Power and Matthew Dunham BDO Stoy Hayward LLP were appointed Sept. 22, 2008, joint administrators of: -- B.H.G Grinding Ltd. (Company Number 00737943); -- Bate Welding & Saw Supplies Ltd. (Company Number 01211941); and -- Bate Group Ltd. (Company Number 04893690). BETTERVIEW WINDOWS: Appoints Joint Administrators from KPMG ----------------------------------------------------------- Myles Antony Halley and David John Standish of KPMG LLP were appointed joint administrators of Betterview Windows & Conservatories Ltd. (Company Number 03688965) on Sept. 25, 2008. The company can be reached at: Betterview Windows & Conservatories Ltd. Pytchley House Russell Gardens Wickford England ESDALE TOOLING: Taps Tenon Recovery as Joint Administrators ----------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint administrators of Esdale Tooling Ltd. (Company Number 05233520) on Sept. 18, 2008. The company can be reached at: Esdale Tooling Ltd. c/o Tenon Recovery Sherlock House 73 Baker Street London W1U 6RD England FOURTH MARKET: Calls in Joint Administrators from Mazars -------------------------------------------------------- R. D. Adamson and P. Charlton of Mazars LLP were appointed joint administrators of Fourth Market Ltd. (Company Number 04058111) (t/a Thames Bathrooms) on Sept. 24, 2008. The company can be reached at: Fourth Market Ltd. c/o Mazars LLP Mazars House Gelderd Road Gildersome Leeds LS27 7JN England HERITABLE: In Default; Deposit Business Transferred to ING ---------------------------------------------------------- Acting on the advice of the Bank and Financial Services Authority (FSA), and in light of announcements made by the Icelandic authorities in recent days, the Chancellor has taken action yesterday, Oct. 8, 2008, to protect the retail depositors in two Icelandic owned banks: Icesave, a UK-based branch of Landsbanki and Heritable, a UK-based banking subsidiary of Landsbanki. He has taken this action to ensure the stability of the UK financial system. Savers' money is safe and secure. Landsbanki/Icesave The UK authorities expect that Landsbanki will soon be declared in default. Should that occur, the Chancellor has put in place arrangements to ensure that no retail depositor will lose any money as a result of the closure of Icesave. The Treasury and the Financial Services Compensation Scheme are working with the Icelandic authorities and their Deposit Insurance Scheme to ensure that depositors are paid back as quickly as possible. The Chancellor has also spoken to the Icelandic Finance Minister about the importance of the Icelandic authorities ensuring that UK depositors in Icesave are given the same protections as depositors in Iceland and receive their deposits back in full promptly. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts. The Chancellor has also taken steps to freeze assets of Landsbanki in the UK until the position with respect to the future of the firm and UK creditors becomes clearer. Heritable Heritable is regulated by the FSA. The FSA has determined that Heritable no longer meets its threshold conditions, and is likely to be unable to continue to meet its obligations to depositors. The FSA concluded that it is in default for the purposes of the Financial Services Compensation Scheme. The Treasury has used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors. Heritable's retail deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group. ING Direct is working to rapidly ensure that it is business as normal for all customers. This action by the Tripartite Authorities protects savers' money and provides certainty for retail depositors. The transfer of the retail deposit book has been backed by cash from HM Treasury and the Financial Services Compensation Scheme. The remainder of Heritable's business has been put into administration. Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING will be paid out in full through the Financial Services Compensation Scheme. This is the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. About Icesave Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. About Heritable Heritable, a UK-based banking subsidiary of Landsbanki. ICESAVE: To Go Into Insolvency Proceedings in Iceland ----------------------------------------------------- HM Treasury, on Tuesday, Oct. 7, 2008, confirmed that if, as expected, Landsbanki is soon declared in default, the Government will make sure that no retail depositor will lose any money as a result of the closure of Icesave. The Treasury have also confirmed that arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax free status of their accounts. The Financial Services Compensation Scheme (FSCS) is working closely with HM Treasury, the Financial Services Authority (FSA) and the Icelandic compensation scheme on arrangements to get people their money back. In the light of the current uncertainties, the FSCS is gearing up in case it needs to assist approximately 300,000 savers at Icesave. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default. Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first EUR20,887 of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of GBP50,000. If the default is triggered as expected, the FSCS will contact all UK savers directly with details of how to apply for compensation. About FSCS FSCS is the UK's compensation fund of last resort for customers of financial services firms authorized by the Financial Services Authority or previous financial regulators. This means that FSCS can pay compensation to consumers if an authorized financial services firm is unable, or likely to be unable, to pay claims against it and so is in "default." FSCS protects deposits, life and general insurance firms, investment business (on or after Aug. 28, 1988), home finance (e.g. mortgage) advice and arranging (on or after Oct. 31, 2004), and general insurance policies advice and arranging (on or after Jan. 14, 2005). About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. About Icesave Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. KAUPTHING: In Default; Deposit Business Transferred to ING ---------------------------------------------------------- Acting on the advice of the Bank and the Financial Services Authority (FSA), and in light of announcements made by the Icelandic authorities in recent days, the Chancellor has taken action yesterday, Oct. 8, 2008, to protect the retail depositors in Kaupthing Singer & Friedlander, a UK-based banking subsidiary of Kaupthing Bank. He has taken this action to ensure the stability of the UK financial system. Savers' money is safe and secure. Kaupthing Singer & Friedlander (KSF) is regulated by the FSA. The FSA has determined that Kaupthing Singer & Friedlander no longer meets its threshold conditions, and is likely to be unable to continue to meet its obligations to depositors. The FSA concluded that KSF is in default for the purposes of the Financial Services Compensation Scheme. The Treasury has used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors. KSF's Kaupthing Edge deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. ING Direct is working to rapidly ensure that it is business as normal for all customers. This action by the Tripartite Authorities protects savers' money and provides certainty for retail depositors. The transfer of the retail deposit books has been backed by cash from HM Treasury and the Financial Services Compensation Scheme. The remainder of Kaupthing Singer & Friedlander business has been put into administration. Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING Direct will be paid out in full through the Financial Services Compensation Scheme. This is the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer. About Kaupthing Bank Headquarted in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.is-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. About Kaupthing Singer & Friedlander Kaupthing Singer & Friedlander is a UK-based banking subsidiary of Kaupthing Bank. LANDSBANKI: Chancellor to Freeze Assets in the UK ------------------------------------------------- Acting on the advice of the Bank and Financial Services Authority (FSA), and in light of announcements made by the Icelandic authorities in recent days, the Chancellor has taken action yesterday, Oct. 8, 2008, to protect the retail depositors in two Icelandic owned banks: Icesave, a UK-based branch of Landsbanki and Heritable, a UK-based banking subsidiary of Landsbanki. He has taken this action to ensure the stability of the UK financial system. Savers' money is safe and secure. Landsbanki/Icesave The UK authorities expect that Landsbanki will soon be declared in default. Should that occur, the Chancellor has put in place arrangements to ensure that no retail depositor will lose any money as a result of the closure of Icesave. The Treasury and the Financial Services Compensation Scheme are working with the Icelandic authorities and their Deposit Insurance Scheme to ensure that depositors are paid back as quickly as possible. The Chancellor has also spoken to the Icelandic Finance Minister about the importance of the Icelandic authorities ensuring that UK depositors in Icesave are given the same protections as depositors in Iceland and receive their deposits back in full promptly. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts. The Chancellor has also taken steps to freeze assets of Landsbanki in the UK until the position with respect to the future of the firm and UK creditors becomes clearer. Heritable Heritable is regulated by the FSA. The FSA has determined that Heritable no longer meets its threshold conditions, and is likely to be unable to continue to meet its obligations to depositors. The FSA concluded that it is in default for the purposes of the Financial Services Compensation Scheme. The Treasury has used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors. Heritable's retail deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group. ING Direct is working to rapidly ensure that it is business as normal for all customers. This action by the Tripartite Authorities protects savers' money and provides certainty for retail depositors. The transfer of the retail deposit book has been backed by cash from HM Treasury and the Financial Services Compensation Scheme. The remainder of Heritable's business has been put into administration. Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING will be paid out in full through the Financial Services Compensation Scheme. This is the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer. About Heritable Heritable, a UK-based banking subsidiary of Landsbanki. About Icesave Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. LANDSBANKI GUERNSEY: Goes Into Administration --------------------------------------------- The Directors of Landsbanki Guernsey Ltd., on Monday night made an application to the Royal Court for the Court to appoint an administrator under Guernsey's company law. The Court has appointed Rick Garrard of Deloitte and Touche LLP with a view to achieving the survival of the bank, and the whole or any part of its undertaking, as a going concern. The administration is on a temporary basis until Jan. 6, 2009 or earlier order of the Court. The application by the bank's Directors follows the deepening problems of the Icelandic economy and, in particular, of the Icelandic banking system. Pending clarification of the uncertainty around liquidity and the ultimate recoverability of certain assets, the Directors have sought to ensure that all depositors of Landsbanki are treated equally and fairly. It is anticipated that the administration will help to ensure that all depositors in the bank, including those with deposits which can be withdrawn immediately and those who are locked in to fixed term deposits, have an opportunity of the return of their funds on the same basis. The decision by the Directors was made after close consultation with the Guernsey Financial Services Commission, which supported the appointment of the administrator as being in the best interests of depositors. Customers should contact the bank's Customer Service Department on the routine number for further details. About Landsbanki Islands hf. Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. About Landsbanki Guernsey Ltd. Landsbanki Guernsey Ltd. -- http://www.landsbanki.co.gg/-- is engaged in retail banking. It is a subsidiary of Iceland-based financial institution Landsbanki Islands hf. LEHMAN BROTHERS: Collapse Causes Lock Up of London-Held Assets -------------------------------------------------------------- Weeks after the bankruptcy filing of Lehman Brothers Holdings Inc., hedge fund clients are still struggling to retrieve assets held by the firm, the International Herald Tribune reported. According to bankruptcy filings, large hedge funds like GLG, Harbinger, Amber Capital, and Elliott Associates still have varying degrees of exposure to Lehman, IHT said. Many of the assets are held at Lehman's prime brokerage unit in London. Many hedge fund investors will have negative returns this year due to the prospect of additional write-downs, IHT said. Lehman's administrator, PriceWaterhouseCoopers LLP, is valuing the assets to be returned to hedge funds and investors. IHT noted that many hedge funds considered the end of September as cutoff date for investors to take their money out. With the future and efficacy of the U.S. bailout plan still unclear, some investors are expected to take the opportunity to retreat to a safer investment haven. Harbinger, the US$13 billion fund, has exposure through complex swap agreements made with an obscure Lehman subsidiary, the report said. In its filing, Harbinger disclosed it is owed "not less than US$250 million," from exposure to "swap agreements." Through August, IHT said that GLG's funds were down about 15% for the year. The firm also faces a large outflow of as much as US$4 billion in capital when one its top managers, Greg Coffey, leaves in November. GLG said recently that its assets still stuck at Lehman were not material, IHT related. But marketplace speculation suggests that the true exposure is larger because of the fund's ties to Lehman, which backed GLG at its founding. LSUK: Goes Into Administration; 600 Jobs at Risk ------------------------------------------------ Euro Car Parts has put Sheffield-based car parts supplier LSUK into administration after failing to secure investment support, threatening the jobs of 600 employees, Independent.co.uk reports. ECP, the report relates, took over the firm Wednesday last week. "Unfortunately it became clear very quickly that it was simply going to be impossible to continue with investment without the required support which was not forthcoming," Euro Car Parts was quoted by the report as saying. The administration, which is being handled by Tenon Recovery, includes all 53 LSUK Branches, including MI Diesel Products, Protech Automotive (UK) and Yeovil Rewind, the report relates. Tenon Recovery is in contact with several interested parties for LSUK, according to ECP. LSUK employs about 110 staff at its head office in Sheffield, the report discloses. MFI RETAIL: Puts Units Into Administration; Completes MBO --------------------------------------------------------- MFI Retail Ltd placed its retail and property units into administration on Monday, Oct. 6, 2008, after completing a management buyout deal, James Thompson of Independent.co.uk reports. The administration is being handled by restructuring specialist Kroll. According to the report, the MBO, led by MFI's chief executive Gary Favell, secured 1,350 jobs under the new company, MFI Group, although 39 employees were made redundant. MFI, the report discloses, will continue to trade as usual and all existing customer orders from all stores will be honored. Meanwhile, the joint administrators is exploring a range of options for MFI's 81 stores, the report relates. "Despite the turbulent trading conditions in the retail sector, we are currently in discussions with a number of potential purchasers � including the management buyout team - for the Companies' head office, distribution center and remaining stores," Fraser Gray, a partner at Kroll, was quoted by the report as saying. As reported in the TCR-Europe, Mr. Favell unveiled plans to buy MFI from Merchant Equity Partners on Sept. 29, 2008. He declared the deal secured the future of the MFI business and would safeguard employees in the store network. MEP, which bought MFI for a nominal GBP1 two years ago, is thought to have paid the management buyout team a GBP25 million dowry to take the furniture retailer off its hands. On Sept. 29, MFI filed a notice of intention to appoint administrators to its property unit, which holds the leases to all of its 194 stores. Kroll had been lined up to act as administrator. The liability for 46 leases could revert back to Galiform, the kitchen maker that sold MFI to MEP, the Independent.co.uk notes. MFI Retail Ltd. is a retailer of quality fitted furniture in the UK. Merchant Equity Partners acquired the company in October 2006. MKM LONGBOAT: Shuts Down on Poor Performance and Lehman's Collapse ------------------------------------------------------------------ MKM Longboat, a client of Lehman Brothers Holdings Inc., closed last week because of poor performance, Landon Thomas, Jr. of the International Herald Tribune reports. James Mackintosh of The Financial Times reported Sept. 27, 2008, that MKM Longboat was to liquidate its US$1.5 billion (GBP816 million) flagship hedge fund citing heavy client withdrawals and Lehman's collapse. MKM had already paid out US$400 million of redemptions in September and decided to wind down the fund after Lehman failed, FT related. MKM's Multi-Strategy Fund had weak performance amid the market swings since May, losing 11.4% in the year to the end of August, according to FT. MKM's Michael Humphries, Keith DeCarlucci and Martin Tonnby plan to keep running its Volatility Strategies Fund, which manages more than US$400 million and is flat for the year. The officials also plan to retain the small Convexity Fund set up in March, which is up more than 20% this year. Based on FT's report, MKM told investors late September that it was liquidating assets in its Multi-Strategy Fund and hoped to return cash at the start of December. Still, MKM's tens of millions of dollars of assets are stuck at Lehman, FT continued. About MKM Longboat MKM Longboat Capital Advisors LLP -- http://www.mkmlongboat.com/ -- is an investment manager formed at the end of 2005 when the three founding principals separated from Sagamore Hill Capital Management, a U.S.-based investment manager, retaining the London- based team and the European operation. MKM managed Sagamore Hill's European and Asian investment strategies from June 2002 to December 2005. MKM manages the MKM Longboat Funds, MKM Longboat Multi-Strategy Fund and MKM Longboat Volatility Strategies Fund. PLASMON PLC: Appoints Joint Administrators from Kroll ----------------------------------------------------- Plasmon Plc had suspended the listing of the ordinary shares on the Official List of the FSA. Messrs. Peter Holder, Simon Freakley and Stuart Mackellar of Kroll's Corporate Advisory and Restructuring Group have been appointed as Joint Administrators on Oct. 6, 2008. The Administrators are continuing to trade the Company's UK and European sales and marketing division alongside the continuing operation of the Company's US subsidiary, Plasmon Inc. This enables the ongoing sale and support of Plasmon products worldwide whilst a going concern sale of the business is explored. The Administrators are presently in discussions with a number of interested parties and are hopeful that a sale of the remaining business can be achieved in a relatively short time frame. The Administrators do not believe that there is likely to be any value realized for Plasmon shareholders. RMAC SECURITIES: S&P Cuts Ratings on Class B1a and B1c Notes to B+ ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered and removed from CreditWatch with negative implications its credit ratings on the class M1a, M1c, M2c, B1a, and B1c notes series 2007-NS1 issued by RMAC Securities No. 1 PLC (RMAC 2007-NS1). S&P also placed on CreditWatch negative its credit ratings on the class A2a, A2b, and A2c notes and affirmed the class A1a, A1b, and A1c notes. The rating actions follow a full credit and cash flow analysis of the most recent loan-level information. The rating actions are based on three main factors: -- The current and continuing decline in U.K. house prices; -- The transaction's expected pool performance, given limited deleveraging to date; and -- The continued dislocation between the Bank of England base rate (BBR) and the high level of three-month London interbank offered rate (LIBOR). As U.K. house prices continue to decline, S&P expects higher losses on average for those loans that ultimately default. S&P also expects the more recently originated U.K. residential mortgage-backed securities (RMBS) transactions to be particularly susceptible to this pressure. As of the September 2008 investor report, repossessions have increased to 2.06% from 1.49% in June 2008 and 0.73% in March 2008. S&P expects to see greater losses on these loans as the repossessions are sold in future quarters. The cash flows will be further affected if the time to sale of the repossessions increases. Total net losses as a percentage of the original pool balance are 0.18%. The constant prepayment rate (CPR) since issuance is low at 10.05%. This has led to only a small increase in credit enhancement compared with an increasing arrears profile: 120+ day arrears (including repossessions) are 7.41%. About 78% of the mortgage pool is currently paying a fixed rate of interest; most of these loans revert to a higher floating rate in second and third quarters of 2009. S&P therefore expects CPR to stay low in the coming quarters. On Sept. 12, RMAC 2007-NS1 drew on its reserve fund for a fourth time by a further GBP280,117, leaving the reserve fund at GBP4.67 million (80.89% of the reserve fund required amount). The reserve fund draw is due to increased losses, increasing delinquencies, and a mismatch between three-month LIBOR paid on the notes and the BBR paid on the loans. There is no basis swap in this transaction and the mismatch currently affects 9.6% of the loans. S&P will continue to monitor the transaction performance using the most recent loan-level data for its full credit and cash flow analyses. S&P will pay particular attention to future repossessions, losses, and changes in collection rates and prepayment rates. The results of S&P's analysis, together with any effects on the ratings on any of the notes, will be released after the December interest payment date. RMAC Securities No. 1 PLC -- GBP296.8 Million, EUR214 Million, And US$168 Million Mortgage-Backed Floating-Rate Notes Series 2007-NS1 Ratings Lowered and Removed From CreditWatch Negative: Class To From ----- -- ---- M1a A+ AA/Watch Neg M1c A+ AA/Watch Neg M2c BBB+ A/Watch Neg B1a B+ BB+/Watch Neg B1c B+ BB+/Watch Neg Ratings Placed On CreditWatch Negative: Class To From ----- -- ---- A2a AAA/Watch Neg AAA A2b AAA/Watch Neg AAA A2c AAA/Watch Neg AAA Ratings Affirmed: A1a AAA A1b AAA A1c AAA SYNTAX-BRILLIAN: Vivitar's UK and Paris Offices Cease Trading ------------------------------------------------------------- Vivitar Corp.'s offices in the United Kingdom and France have closed with the loss of 26 staff, 14 in Leicester and 12 in Paris, as the firm, known as Vivitar SA France, ceases trading, Chris Cheesman of the Amateur Photographer Magazine reports. Amateur Photography Magazine is a British photography magazine. According to the report, the firm has gone into administration owing more than GBP4 million to creditors. Syntax-Brillian Corporation, which ran into financial difficulties and filed for bankruptcy under Chapter 11 in Delaware on July 8, is the parent company of photographic equipment maker Vivitar Corporation. The Vivitar worldwide brandname and associated intellectual property was recently sold to U.S. consumer electronics firm Sakar Internatinal. Based in Tempe, Arizona, Syntax-Brillian Corporation (Nasdaq:BRLC) -- http://www.syntaxbrillian.com/-- manufactures and markets LCD HDTVs, digital cameras, and consumer electronics products include Olevia(TM) brand high-definition widescreen LCD televisions and Vivitar brand digital still and video cameras. Syntax-Brillian is the sole shareholder of California-based Vivitar Corporation. The company and two of its affiliates -- Syntax-Brillian SPE, Inc., and Syntax Groups Corp. -- filed for Chapter 11 protection on July 8, 2008 (Bankr. D. Delaware Lead Case No.08-11409 to 08-11409. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig LLP, represent the Debtors in their restructuring efforts. Five members compose the Official Committee of Unsecured Creditors. Epiq Bankruptcy Solutions, LLC is the Debtors' balloting, notice, and claims agent. When the Debtors filed for protection from their creditors, they listed total assets of US$175,714,000 and total debts of US$259,389,000. W.J. OLIVER: Forced Into Receivership by Wet Summer --------------------------------------------------- Messrs. Gilbert Lemon and Ian Walker have been appointed joint receivers for W.J. Oliver & Son, Paul Spackman of Farmers Weekly Interactive reports. The company reported difficulty for the past two years compounded by a wet summer that prevented them from harvesting growing crops. Based on the report, the joint receivers said that the company will continue trading in the short term to harvest remaining crops. They will also determine the company's potential for a sale of part or the company as a whole. W.J. Oliver & Son supplies fresh organic vegetables throughout Devon and Cornwall. The company has 20 staff and covers 300 acres of land. * British Government Unveils Bank Rescue Package ------------------------------------------------ After consultation with the Bank of England and the Financial Services Authority, the Government announced yesterday, Oct. 8, 2008, that it is bringing forward specific and comprehensive measures to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers. In summary the proposals announced yesterday are intended to: * provide sufficient liquidity in the short term; * make available new capital to UK banks and building societies to strengthen their resources permitting them to restructure their finances, while maintaining their support for the real economy; and * ensure that the banking system has the funds necessary to maintain lending in the medium term. In these extraordinary market conditions, the Bank of England will take all actions necessary to ensure that the banking system has access to sufficient liquidity. In its provision of short term liquidity the Bank will extend and widen its facilities in whatever way is necessary to ensure the stability of the system. At least GBP200 billion will be made available to banks under the Special Liquidity Scheme. Until markets stabilize, the Bank will continue to conduct auctions to lend sterling for three months, and also US dollars for one week, against extended collateral. It will review the size and frequency of those operations as necessary. Bank debt that is guaranteed under the Government's guarantee scheme will be eligible in all of the Bank's extended- collateral operations. The Bank next week will bring forward its plans for a permanent regime underpinning banking system liquidity, including a Discount Window facility. In addition the Government is establishing a facility, which will make available Tier 1 capital in appropriate form (expected to be preference shares or PIBS) to "eligible institutions". Eligible institutions are UK incorporated banks (including UK subsidiaries of foreign institutions) which have a substantial business in the UK and building societies. However applications are invited for inclusion as an eligible institution from any other UK incorporated bank (including UK subsidiaries of foreign institutions). In reviewing these applications the Government will give due regard to an institution's role in the UK banking system and the overall economy. Following discussions convened by HM Treasury, major UK banks and the largest building society have confirmed their participation in a Government-supported recapitalization scheme. These institutions comprise: * Abbey * Barclays * HBOS * HSBC Bank plc * Lloyds TSB * Nationwide Building Society * Royal Bank of Scotland * Standard Chartered These institutions have committed to the Government that they will increase their total Tier 1 capital by GBP25 billion. This is an aggregate increase and individual increases will vary from institution to institution. In order to facilitate this process the Government is making available GBP25 billion to be drawn on by these institutions if desired to assist in this process as preference share capital or PIBS and is also willing to assist in the raising of ordinary equity if requested to do so. The institutions have committed to the Government that this will be concluded by the end of the year. In addition to this, the Government stands ready to provide an incremental minimum of GBP25 billion of further support for all eligible institutions, in the form of preference shares, PIBS or, at the request of an eligible institution, as assistance to an ordinary equity fund-raising. The amount to be issued per institution will be finalized following detailed discussions. If the Government is to provide the capital, the issue will carry terms and conditions that appropriately reflect the financial commitment being made by the taxpayer. In reaching agreement on capital investment the Government will need to take into account dividend policies and executive compensation practices and will require a full commitment to support lending to small businesses and home buyers. The Government will take decisive action to reopen the market for medium term funding for eligible institutions that raise appropriate amounts of Tier 1 capital. Specifically the Government will make available to eligible institutions for an interim period as agreed and on appropriate commercial terms, a Government guarantee of new short and medium term debt issuance to assist in refinancing maturing, wholesale funding obligations as they fall due. Subject to further discussion with eligible institutions, the proposal envisages the issue of senior unsecured debt instruments of varying terms of up to 36 months, in any of sterling, US dollars or Euros. The current expectation is that the guarantee would be issued out of a specifically designated Government-backed English incorporated company. The Government expects the take-up of the guarantee to be of the order of GBP250 billion, and will keep this under review alongside ongoing monitoring of capital positions and lending volumes. To qualify for this support the relevant institution must raise Tier 1 capital by the amount and in the form the Government considers appropriate whether by Government subscription or from other sources. It is being made available immediately to the eight institutions named above in recognition of their commitment to strengthen their aggregate capital position. The Government has informed the European Commission of these proposals and is actively talking to other countries about extending these proposals and has committed to work together with them to strengthen the international system. The Government is moving ahead immediately with the internationally agreed proposal for colleges of supervision and other measures to improve supervision of the system. After discussions with the major economies at the G7 meeting on Friday, the Government and other countries agreed on the need for a meeting at heads of Government level. * ENGLAND: Banks Squeeze on Household Credit Due to Falling Prices ------------------------------------------------------------------ According to the Bank of England's latest Credit Conditions Survey, Banks have cut their supply of secured credit to households by even more in the third quarter of 2008 than expected, Norma Cohen writes for The Financial Times. Lenders cited expectations for falling house prices and concerns about the economic outlook as factors behind the drop, FT says. A further decline in secured credit is expected over the next quarter. New data released on Oct. 2, 2008, showed lenders' concerns to be well placed; Nationwide's House Price Index for September showed a drop of 1.7% and a year-on-year decline of 12.4%, the largest one year drop in the Index since Nationwide began recording monthly price changes in January 1991. * Europe's Rules on Pre-Pack Administrations to be Tightened ------------------------------------------------------------ David Jetuah of The Accountancy Age says that the rules governing controversial 'pre-pack' administrations are to be tightened up by a new code of ethics on company wind-ups. Statement of insolvency practice 16 will see IPs make disclosures on topics such as valuations when reporting to creditors after the sale of a company has been completed. Pre-packs, which became active in 2003, involve the sale of a company being lined up before it has officially entered the administration procedure. Companies can now be put into the hands of administrators within hours. David Kerr, the chief executive of the Insolvency Practitioners Association, said there would be a disciplinary element to the new code, The Accountancy Age relates. This would mean IPs could find themselves open to disciplinary action from their governing body if they could not explain a deviation from the rules. The Accountancy Age reports that the tightening of the pre-packs rules are mainly to put creditors' minds at rest that IPs are getting the best value for companies out of a pre-pack, which are disliked by some, and also to ensure best practice in the insolvency community. According to the report, some have complained that pre-pack is an easy way for company directors to keep hold of companies and shed debts. The move has been made as the prospect of more business failures looms on the horizon. As the number of insolvencies continues to rise steadily, Kerr said that this was the first time the Enterprise Act would be put to the test, The Accountancy Age writes. * EU Commission Tightens Capital Requirements Directive ------------------------------------------------------- Nikki Tait of The Financial Times reports that banks will face tougher capital requirements to support their operations under new rules announced in Brussels on Oct. 1, 2008. Supervisory arrangements for those with cross-border operations in Europe will also be strengthened. FT relates that lawmakers at Brussels use the long-awaited reforms to the so-called Capital Requirements Directive (CRD) to tighten banking practices and supervision in the wake of the credit crunch. But, although the proposals were drafted after the financial crisis first struck in August 2007, they pre-date the latest series of bank failures, FT reports. Senior officials at the European Commission have acknowledged new rules need to be supplemented by other measures. The legislation, according to FT, will require approval by both the European Parliament and member states, and could undergo further alterations in the process. The proposals, however, fall short of centralized supervision, thought desirable by some of the EU's largest member states, FT writes. Political resistance are likely to the enhancements from some of the smaller countries, especially in eastern Europe. Among the more contentious proposals, according to FT, is that banks that devise and then offload securitized products should be forced to retain some of the risk. Last week, banking associations refused to comment on the final shape of the securitization proposal. Meanwhile, under the CRD, there will be a 25% limit on all interbank exposures with far fewer exceptions to this than permitted at present, FT says. The commission is set to present a separate legislation this month requiring credit ratings agencies to register and meet standards to operate in Europe. * Europe to Dive Deeper in Crisis than the United States -------------------------------------------------------- Continental Europe is heading for a deeper recession than the U.S. as it lacks the necessary flexibility to react to the worsening economic situation, according to leading executives and policymakers, Richard Milne writes for The Financial Times. European business people are worried that Europe will suffer more from the financial crisis originating in the U.S., the report says. Investors are urging the European Central Bank to abandon its focus on inflation and concentrate on trying to stave off a prolonged recession. As reported by the Troubled Company Reporter-Europe on Sept. 30, 2008, European MEPs want the European Commission to draw up tougher laws to regulate the activities of hedge funds and private equity funds. The European Parliament, in a vote on September 23, backed the report that calls for more transparency in company managers' reward packages. It also wants mandatory capital requirements for investment firms. Baldomero Falcones, executive chairman of FCC, the Spanish infrastructure company, projected that the recovery in the U.S. is around a year or two, a year more in Europe and six months more in Spain, FT relates. Carmen Riu at Riu Hotels & Resorts, one of Spain's tourism groups, said that the U.S. is more agile while "Europe is infinitely more rigid," FT notes. Executives and policymakers said that Europe did not use the past few good years to push through much-needed reform in areas such as labor flexibility, FT says. Policymakers have been comforted by the recent rescues of Fortis and Dexia. One senior policymaker admitted that the ECB's designated focus on inflation makes the prospects for growth in the continent bleak, FT adds. According to the report, European companies had banked on growth from emerging markets such as Russia and China to compensate for weakness in Europe. Europe Stands Ready Amid Global Financial Crisis, IMF Says Europe must ready plans in case its problems worsen, the International Monetary Fund Managing Director Dominique Strauss- Kahn said, Lesley Wroughton at Reuters relates. IMF also said that the United States needs to act urgently to shield its economy from an escalating credit crisis. "A non-perfect plan is better than no plan at all," he said of the [US]$700 billion bank bailout plan rejected by the U.S. House of Representatives, Reuters reports, citing Mr. Strauss-Kahn. Mr. Strauss-Kahn said restoring market confidence required the bailout plan to be passed quickly. Reuters adds that as the crisis has spread beyond Wall Street, European countries have stepped up their efforts to avoid bank defaults as concerns grew that more institutions would fail, prompting the Irish government to guarantee all bank deposits. The lack of a pan-European regulator, Strauss-Kahn said, makes it more difficult to respond to the crisis should a big bank collapses with cross border businesses, Reuters notes. The IMF official said that "a contingency plan does not mean it's announcing a lot of trouble coming" but that there's no total immunity from the U.S. financial crisis, Reuters reports. He stressed that this what Europe totally needs. Mr. Strauss-Kahn admitted that "[t]he EU rules make it much more difficult than in the U.S." to act across borders, according to Reuters. * S&P Probes European Local & Regional Government Risk Indicators ----------------------------------------------------------------- Standard & Poor's Ratings Services has just published an updated version of "European Local And Regional Government Risk Indicators", a comprehensive overview of the key indicators it uses in assessing local and regional governments (LRGs) across Europe. "The report contains statistics on 147 publicly rated LRGs, including key indicators such as GDP per capita and total budgetary revenues, as well as the ratings on the associated sovereign governments," said S&P's credit analyst Gabriel Forss. The report takes into account the global market turbulence of recent weeks and assess its impact on rated LRGs by rating category. LRGs in the 'AAA' category are likely to face little impact and only modest increases in debt, the report says, while sub-investment grade LRGs in the 'BB' and 'B' rating categories are likely to remain constrained by limited possibilities to quickly and effectively adjust their budgets in the face of external shocks. The report notes that the current market turbulence has currently had the biggest impact in Russia, where three LRGs have so far been placed on CreditWatch with negative implications. In all cases uncertainty about debt maturing in 2008 and availability of resources were the triggers. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 13, 2008 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Standard Club, Chicago, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2008 TURNAROUND MANAGEMENT ASSOCIATION Annual Charity Golf Event Forest Park Golf Course, St. Louis, Missouri Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Billiards Networking Night Herbert's Billiards, Secaucus, New Jersey Contact: 908-575-7333 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Member Social Davenport Press, Mineola, New York Contact: 631-251-6296 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION View from the Bench - Bankruptcy Update Summit Club, Birmingham, Alabama Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION How to Contract with a Turnaround Manager University Club, Portland, Oregon Contact: www.turnaround.org Oct. 22, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Nevada Award Night McCormick & Schmick's, Las Vegas, Nevada Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Election Oriented TBD, Phoenix, Arizona Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds: A Panel of Professionals TBA, Rochester, New York Contact: www.turnaround.org Oct. 23-24, 2008 AMERICAN CONFERENCE INSTITUTE Distressed Assets Boot Camp TBD, London, United Kingdom Contact: www.americanconference.com Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: www.turnaround.org Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 29-30, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Corporate Governance Meetings Marriott, New Orleans, Louisiana Contact: www.turnaround.org Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Oct. 31, 2008 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hilton, Frankfurt, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 6, 2008 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Coach House Diner & Restaurant, Hackensack, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 11, 2008 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Case Study Summit Club, Birmingham, Alabama Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds:A View From Workout Consultants TBA, Buffalo, New York Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Social TBD, Melville, New York Contact: 631-251-6296 or www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Nov. 17-18, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Distressed Investing Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Special Program Tournament Players Club at Jasna Polana, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Nov. 20, 2008 TURNAROUND MANAGEMENT ASSOCIATION Senior Housing & Long Term Care Washington Athletic Club,Seattle, Washington Contact: www.turnaround.org Nov. 27, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Chris Kaup TBD, Phoenix, Arizona Contact: www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Chinas New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergersthe New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ * * * Featured Conferences Renaissance American Management and Beard Conferences presents Oct. 30-31, 2008 Physician Agreements & Ventures The Millennium Knickerbocker Hotel - Chicago Brochure will be available soon! Nov. 17-18, 2008 Distressed Investing The Helmsley Park Lane - New York Brochure will be available soon! * * * Beard Audio Conferences presents Bankruptcy and Restructuring Audio Conference CDs More information and list of available titles at: http://beardaudioconferences.com/bin/topics?category_id=BAR * * * The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 Tovilla, Joy Agravante, Melanie Pador, Marie Therese V. Profetana 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 * * *