/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081126.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, November 26, 2008, Vol. 9, No. 235 Headlines A U S T R I A GANZER & CO: Claims Registration Period Ends December 5 GRABNER & CO: Claims Registration Period Ends December 5 MUST LLC: Claims Registration Period Ends December 9 TAVOLO ROSSO: Claims Registration Period Ends December 8 F R A N C E DELPHI CORP: Wants to Defer GM Deal and DIP Hearing to Dec. 1 G E R M A N Y ABFALL VERWERTUNGS: Claims Registration Period Ends January 4 AC PERSONALMANAGEMENT: Claims Registration Period Ends Jan. 15 BOT LOGISTIC: Claims Registration Period Ends January 13 FATEK CONCRETE: Claims Registration Period Ends December 29 SCHREINEREI KOCH: Claims Registration Period Ends January 5 UBS DEUTSCHLAND: Moody's Junks Rating on EUR50 Million Loan WEM INDUSTRIEANLAGENBAU: Claims Registration Period Ends Dec. 15 H U N G A R Y * HUNGARY: Corporate Insolvencies Up 11% to 15,200 in Q1-Q3 I C E L A N D ICESAVE: Iceland Agrees to Compensate Part of British Accounts * Iceland's Liabilities to UK Over Icesave Stood at GBP2.2Bln I R E L A N D EBS BUILDING: Fitch Downgrades Support Rating Floor at 'BB+' * Moody's Reports Negative Outlook for Irish Banking System * IRELAND: Solvency at Risk; Draws Up Fresh Bail-Out for Banks I T A L Y ALITALIA SPA: Air-France Still Interested to Buy Minority Stake FINMECCANICA SPA: Moody's Upgrades Ratings From Low-Bs K A Z A K H S T A N ENERGY COMMERCE: Creditors Must File Proofs of Claim by Jan. 2 ERTIS MAI: Creditors' Claims Deadline Slated for Jan. 2 GOLD SNUB: Creditors' Claims Filing Period Ends December 31 KATA SECURITY: Creditors' Claims Due on December 31 KAZ INTER COM: Creditors Must Register Claims by December 31 KAZAKHSTAN ELECTRICITY: S&P Maintains 'BB+' Corp. Credit Rating NURANI-INTERNATIONAL LLP: Creditors Must File Claims by Jan. 2 PAVLODAR TRANS: Creditors' Claims Deadline Slated for Dec. 31 PELEKANOM LLP: Creditors' Claims Filing Period Ends Dec. 31 STROY-MAXIMUM LLP: Creditors Must Register Claims by Jan. 2 TRANSIT INTER: Creditors' Claims Due on December 31 * KAZAKHSTAN: Gov't Reveals US$21 Billion Rescue Package K Y R G Y Z S T A N EMPATI LTD: Creditors Must File Claims by December 27 IKEEN GROUP: Creditors Must File Claims by December 27 NEOMED-LABORATORY: Creditors Must File Claims by December 31 L U X E M B O U R G LOGWIN AG: Moody's Maintains Sr. Subordinated Rating at 'Caa1' N E T H E R L A N D S LYONDELL BASELL: Weak Financial Results Cue Fitch's Rating Cuts P O R T U G A L HIPOTOTTA 9: Moody's Puts Final Ba3 Rating on Class E Notes R U S S I A BANK SOYUZ: S&P Downgrades Counterparty Credit Rating to 'B-' DONSKIE STAINLESS: Creditor Must File Claims by January 14 EVRAZ GROUP: Gets US$1.8 Billion Loan from Vnesheconombank IRBITSKIY AUTO-AGGREGATE: Creditors Must File Claims by Jan. 14 IZHEVSKIY AUTOMATIVE: Creditor Must File Claims by December 14 KALACHINSKIY CONSTRUCTION: Court Names Insolvency Manager KAMA SHIP-BUILDING: Creditor Must File Claims by December 14 LEVOBEREZHNY MINERAL: Creditor Must File Claims by December 14 LINIYA: Secures Financing from Russia's State Bank VTB MOUNTING TECHNOLOGIES: Creditor Must File Claims by December 14 TAYGINSKIY CRUSHED: Creditor Must File Claims by December 14 TRANS-LINE LLC: Creditor Must File Claims by December 14 YELIZAVEYINSKIY PILOT: Creditors Must File Claims by January 14 * LENINGRAD OBLAST: S&P Upgrades Issuer Ratings to 'BB/ruAA' * RUSSIA: VEB Grants US$2BB Loan to Mining, Electronic Firms S P A I N CEMEX SAB: Fitch Corrects Rating Release to Include Rinker IDR FONDO DE TITULIZACION: S&P Holds Junk Rating on Class F Notes S W E D E N * Big 3 May Ask Congress for Measures That Would Spur Demand * Obama Team Denies Explore Prepack Bankruptcy for Big 3 S W I T Z E R L A N D AEROGIE.PLUS JSC: Creditors Must File Proofs of Claim by Dec. 15 ART ON STREETS: Deadline to File Proofs of Claim Set Dec. 15 DAL-DALCO JSC: Creditors Have Until Dec. 12 to File Claims EYELIES LLC: Proofs of Claim Filing Deadline is Dec. 15 GULLOTTI LLC: Creditors' Proofs of Claim Due by Dec. 11 MUSICAL HERITAGE: Dec. 12 Set as Deadline to File Claims RULAG JSC: Creditors Must File Proofs of Claim by Dec. 10 TTG DIENSTLEISTUNGEN: Deadline to File Claims Set Dec. 15 UBS AG: Swiss Government Offers More Financial Help U K R A I N E ASU COAL: Creditors Must File Claims by December 6 COMPLEX OJSC: Creditors Must File Claims by December 5 IZIUM FURNITURE: Creditors Must File Claims by December 6 KAMIANKA SUGAR: Creditors Must File Claims by December 6 LASTAR LLC: Creditors Must File Claims by December 6 NORMA CAPITAL: Creditors Must File Claims by December 5 OREOL LLC: Creditors Must File Claims by December 6 OST-WEST LLC: Creditors Must File Claims by December 5 S-MEDIA GROUP: Creditors Must File Claims by December 5 SERVICE-PLUS LLC: Creditors Must File Claims by December 5 U N I T E D K I N G D O M ABACUS CONTACT: Appoints Joint Liquidators from Tenon BEE FLY: Names Joint Liquidators from BDO Stoy C & N INTERNATIONAL: Appoints Joint Administrators from PKF COLORSET: Goes Into Liquidation; Blames Tight Lending Restrictions DECO 6: Fitch Affirms 'BB' Rating on GBP24.09 Mil. Class D Notes ELISION LTD: Names Joint Administrators from PwC FULHAM ROAD: Moody's Puts Low-B Ratings on Three Classes of Notes GAMBLE TRACKLINE: Taps Joint Liquidators from BDO Stoy HANSA: Goes Into Administration; West Ham Not Affected HEATHMANS: To Enter Into Liquidation MORTGAGE MINT: Winding-Up Order Sought by Legal & General NORHAM HOUSE: Taps Joint Administrators from BDO Stoy PREMIER FOODS: Scraps Dividend; Defers Covenant Test to March 31 ROYAL BANK: Shareholders Back Government Bail-Out Plan SOUTHERN PACIFIC: S&P Removes Ratings on 3 Tranches From NegWatch UBS AG: Deteriorating Credit Quality Cues Moody's to Junk Rating WOOLWORTHS GROUP: Main Shareholder Puts Forward Alternative Plan WOOLWORTHS GROUP: Hilco Sweetens GBP1 Offer for Retail Unit * Moody's Takes Rating Actions on EUR1.02 Billion CDO Tranches ********* =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D A U S T R I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D GANZER & CO: Claims Registration Period Ends December 5 ------------------------------------------------------- Creditors owed money by LLC Ganzer & Co (FN 23674s) have until Dec. 5, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Reinhold Unterweger Rosengasse 8 9900 Lienz Tel: 04852/65644 04852/65645 Fax: 04852/656444 E-mail: kanzlei@ra-unterweger.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Dec. 19, 2008, for the examination of claims at: Land Court of Innsbruck Room 214 New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Osttirol, Austria, the Debtor declared bankruptcy on Oct. 29, 2008, (Bankr. Case No. 9 S 21/08z). GRABNER & CO: Claims Registration Period Ends December 5 -------------------------------------------------------- Creditors owed money by LLC Grabner & Co. KEG have until Dec. 5, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Arno Lerchbaumer Marburgerkai 47 8010 Graz Austria Tel: 0316/822244 Fax: 0316/822244-22 E-mail: office@lerchbaumer.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on Dec. 10, 2008, for the examination of claims at: Graz Land Court Room 222 Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Oct. 29, 2008, (Bankr. Case No. 26 S 128/08f). MUST LLC: Claims Registration Period Ends December 9 ---------------------------------------------------- Creditors owed money by LLC Must (FN 292907x) have until Dec. 9, 2008, to file written proofs of claim to the court-appointed estate administrator: Daniel Lampersberger Esteplatz 4 1030 Vienna Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on Dec. 23, 2008, for the examination of claims at: Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 20, 2008, (Bankr. Case No. 28 S 134/08x). TAVOLO ROSSO: Claims Registration Period Ends December 8 -------------------------------------------------------- Creditors owed money by LLC Tavolo Rosso Gastro (FN 279019y) have until Dec. 8, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Heinrich Oppitz Karl Loy Strasse 17 4600 Wels Austria Tel: 07242/26613 Fax: 07242/26613-6 E-mail: office@ra-oppitz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Dec. 18, 2008, for the examination of claims at: Trade Court of Wels Hall 101 Maria Theresia Str. 12 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Oct. 30, 2008, (Bankr. Case No. 20 S 135/08s). =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D F R A N C E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D DELPHI CORP: Wants to Defer GM Deal and DIP Hearing to Dec. 1 ------------------------------------------------------------- Delphi Corp. asked the U.S. Bankruptcy Court for the Southern District of New York at the monthly omnibus hearing to defer completing the hearings on Delphi's GM Arrangement Second Amendment Agreement Approval Motion and Debtor-In Possession Accommodation Motion until Dec. 1, 2008, pending further discussions among Delphi, GM and the Administrative Agent for the DIP Lenders. Delphi filed both motions with the Bankruptcy Court on Nov. 7, 2008. The DIP Accommodation Motion seeks authority to continue use of the proceeds from its DIP Credit Facility through June 30, 2009, pursuant to an accommodation agreement to be entered into between Delphi and certain lenders that constitute the majority of holders by amount of Delphi's two most senior tranches of its DIP Credit Facility. When filed, the agreement reflected the support of the administrative agent and the anticipated support of the Required Lenders for Delphi's transformation efforts, despite the economic downturn and the unprecedented turmoil in the capital markets. The company made various changes to the Accommodation Agreement since the November 7 filing in order to obtain support from as many DIP lenders as practicable and has received signature pages from more than the Required Lenders needed to implement the agreement. The GM Arrangement Second Amendment Agreement Approval Motion provides the company with access to up to US$600 million in additional liquidity through June 2009 through a combination of US$300 million in additional payments from GM that are subordinated to the DIP lenders and the temporary acceleration of US$300 million in payments from GM during March, April and May of 2009. The company said that while the original form of Accommodation Agreement was acceptable to GM, GM has asked, and Delphi has agreed, to reconsider certain of the subsequent amendments agreed to between Delphi and the Required Lenders subsequent to the November 7 filing. Delphi intends to engage in discussions with GM and certain of Delphi's DIP lenders in an attempt to identify acceptable changes to the documents presented to the Bankruptcy Court. While there can be no assurance that acceptable changes will be agreed among the parties, the company expects such discussions to be completed before the continued hearing on Dec. 1, 2008. 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. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed USUS$9,162,000,000 in total assets and USUS$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide USUS$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D G E R M A N Y =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ABFALL VERWERTUNGS: Claims Registration Period Ends January 4 ------------------------------------------------------------- Creditors of AVB Abfall Verwertungs Betrieb & Oezkan Containerdienst GmbH have until Jan. 4, 2008, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Feb. 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 Luxemburger Strasse 101 50939 Cologne Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Gerd Jauch Sachsenring 81 50677 Koeln Germany Tel: 0221/33660130 Fax: +492213366085 The District Court opened bankruptcy proceedings against the company on Nov. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AVB Abfall Verwertungs Betrieb & Oezkan Containerdienst GmbH Josef-Linden-Weg 16 51149 Koeln Germany Attn: Wilfried Wilms, Manager Burgstr. 38 41836 Hueckelhoven Germany AC PERSONALMANAGEMENT: Claims Registration Period Ends Jan. 15 -------------------------------------------------------------- Creditors of AC Personalmanagement GmbH have until Jan. 15, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Feb. 26, 2008, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Jan Roth Pfingstweidstrasse 3 60316 Frankfurt am Main Germany Tel: 069/209739-0 Fax: 069/20973929 The District Court opened bankruptcy proceedings against the company on Nov. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AC Personalmanagement GmbH Attn: Amir Cehic, Manager Roedelheimer Bahnweg 10 60489 Frankfurt am Main Germany BOT LOGISTIC: Claims Registration Period Ends January 13 -------------------------------------------------------- Creditors of BOT Logistic GmbH have until Jan. 13, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 20, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bersenbrueck Room E 11 Main Building Stiftshof 8 49593 Bersenbrueck Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus Niemeyer Schillerstrasse 20 D 49074 Osnabrueck Germany Tel: 0541/338500 Fax: 0541/3385050 The District Court opened bankruptcy proceedings against the company on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BOT Logistic GmbH Schleptruper Strasse 26 49565 Bramsche Germany Attn: Kathrin Sepp, Manager Friedrichstr. 44 49565 Bramsche Germany FATEK CONCRETE: Claims Registration Period Ends December 29 ----------------------------------------------------------- Creditors of FATEK Concrete Services GmbH have until Dec. 29, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:40 a.m. on Jan. 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dessau-Rosslau Hall 123 Willy-Lohmann-Str. 33 Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joerg Riedemann Muehlweg 47 06114 Halle Germany Tel: 0345/293900 Fax: 0345/2939029 The District Court opened bankruptcy proceedings against the company on RD. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FATEK Concrete Services GmbH Attn: Michael Hofhans, Manager Karl-Liebknecht-Strasse 60 06766 Bitterfeld-Wolfen OT Wolfen Germany SCHREINEREI KOCH: Claims Registration Period Ends January 5 ----------------------------------------------------------- Creditors of Schreinerei Koch GmbH have until Jan. 5, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 2, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany The District Court opened bankruptcy proceedings against the company on Nov. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schreinerei Koch GmbH Piepenstockstrasse 8 44263 Dortmund Germany Attn: Kai Schulte, Manager Auf dem Brink 236 44329 Dortmund Germany UBS DEUTSCHLAND: Moody's Junks Rating on EUR50 Million Loan ----------------------------------------------------------- Moody's Investors Service has downgraded its rating the EUR50 million Schuldsche in Loan Agreement where UBS Deutschland AG is Borrower and Protection Buyer. According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 15, 2008, Freddie Mac, which was placed into the conservatorship of the U.S. government on Sept. 8, 2008 and one Icelandic bank, specifically Kaupthing Bank hf. Rating action is: UBS Deutschland AG: EUR50,000,000 Floating Rate Portfolio Credit Linked Schuldschein Loan Agreement due 2015 -- Current Rating: Caa1 -- Prior Rating: A3 -- Prior Rating Action Date: Sept. 27, 2007 WEM INDUSTRIEANLAGENBAU: Claims Registration Period Ends Dec. 15 ---------------------------------------------------------------- Creditors of WEM Industrieanlagenbau-Verwaltungs GmbH have until Dec. 15, 2008, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 13, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Rainer Maus Turmhof 15 42103 Wuppertal Germany Tel: 0202/49 37 00 Fax: 0202/4937099 The District Court opened bankruptcy proceedings against the company on Nov. 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WEM Industrieanlagenbau-Verwaltungs GmbH Attn: Lorenz Eberhardt, Manager Friedenstrasse 143 42699 Solingen Germany =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D H U N G A R Y =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D * HUNGARY: Corporate Insolvencies Up 11% to 15,200 in Q1-Q3 ----------------------------------------------------------- The number of corporate insolvencies in Hungary increased by 11% to about 15,200 in Q1-Q3 from the same period a year earlier, Budapest Business Journal reports citing figures compiled by the Hungarian unit of French credit insurance company Coface. According to the report, about 26% of insolvency procedures were in the trade sector and 17% were in the construction sector. The number of insolvencies was also disproportionately high in the tourism, real estate and automotive sectors, the report notes. The report discloses almost 7,100 companies were wound up in Q1- Q3, up 10% from the same period a year earlier. The number of companies liquidated at the initiation of creditors rose 12% to 8,100, while only 12 companies asked for bankruptcy protection, the report states. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D I C E L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ICESAVE: Iceland Agrees to Compensate Part of British Accounts -------------------------------------------------------------- The government of Iceland has agreed to repay British savers the first GBP18,000 they had in their Icesave accounts, Emily Coakley at Finding Dulcinea reported last week citing the Daily Mail. The Financial Services Compensation Scheme has already paid GBP250 million to many Icesave customers, Finding Dulcinea recalled. Finding Dulcinea noted that the Daily Mail said the FSCS is to kick in the next GBP32,000 to cover up to GBP50,000 of an individual's account after Icesave compensates for the first GBP18,000 of a person's account. As reported in the TCR-Europe on Nov. 10, 2008, the UK government loaned GBP800 million to the FSCS to refund British savers in Icesave. 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. Citing the Daily Telegraph, the TCR-Europe on Nov. 6, 2008, reported that all Icesave accounts were frozen in the UK on October 7, when its parent bank, Landsbanki, went into receivership in Iceland. After it emerged that the Icelandic compensation scheme had insufficient funds to meet its guarantees, the UK Government stepped in, declaring it would protect all UK savers in full. * Iceland's Liabilities to UK Over Icesave Stood at GBP2.2Bln ------------------------------------------------------------- Daniel Bentley at the Independent reported last week that the UK is owed GBP2.2 billion by Iceland. Citing a Treasury official, the report disclosed the figure was the amount paid to Icesave to cover Britons' savings when its parent company Landsbanki went into receivership last month. The report noted the money is now part of a US$10.2 billion (GBP6.8 billion) package of support for Iceland agreed by the International Monetary Fund on Thursday, Nov. 20. "We will work out a timetable for repayment over the next few weeks," Prime Minister Gordon Brown's spokesman was quoted by the report as saying. "It's money that's owed to us as a result of the problems in the Icelandic banking sector." Citing the Daily Telegraph, the TCR-Europe on Nov. 6, 2008, reported that all Icesave accounts were frozen in the UK on October 7, when its parent bank, Landsbanki, went into receivership in Iceland. After it emerged that the Icelandic compensation scheme had insufficient funds to meet its guarantees, the UK Government stepped in, declaring it would protect all UK savers in full. Around 300,000 British savers had accounts worth some GBP4 billion in Icesave, which attracted overseas customers with offers of high interest rates on savings. 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. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D I R E L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D EBS BUILDING: Fitch Downgrades Support Rating Floor at 'BB+' ------------------------------------------------------------ Fitch Ratings has downgraded the Long-term Issuer Default rating of Ireland-based EBS Building Society to 'A-' from 'A'. The Outlook is changed to Negative from Stable. The agency has downgraded the Individual rating to 'B/C' from 'B', while affirming the Short-term IDR at 'F1+', the Support rating at '3' and the Support Rating Floor at 'BB+'. The senior debt of EBS is downgraded to 'A'. Subordinated debt and permanent interest bearing shares are downgraded to 'BBB+' from 'A-'. However, all senior and lower Tier II debt issues with original maturities longer than one year which mature before 29 September 2010 are included in the Irish government's credit institutions financial support scheme and are therefore rated at 'AAA'. The rating action reflects the agency's view that the economy in Ireland is performing worse than expected, with growth being reversed and unemployment likely to continue rising. House prices have fallen by 15% and Fitch expects them to fall further. In this context, Fitch considers that the two riskiest elements in the society's loan book are its reasonably large exposure to high loan to value mortgages and a portion of its commercial lending. These two characteristics are likely to lead the society to report significant loan impairment charges, reducing operating profit. Fitch considers that the dislocated financial markets also reduce the operating flexibility of the society. Fitch notes that EBS benefits from the funding guarantee provided by the Irish government in its credit institutions financial support scheme, which is reflected in the 'F1+' Short-term IDR. As a response to the tougher financial market conditions, like all other credit institutions, EBS is adopting a more conservative approach. It has increased its deposit gathering and expects to improve its loan/deposit ratio which has been strained by rapid growth in loans. It has ceased new commercial lending to concentrate on offering residential mortgages to its members. It will control costs attentively and aims to strengthen its capital position by retaining earnings while managing cautiously the size of its balance sheet. Fitch views positively all these measures and notes the society's good retail funding franchise and liquidity and its acceptable level of capital. EBS could experience a further downgrade if asset quality deteriorates significantly and credit impairment charges erode operating profit to a level weaker than its 'A-' rated peers. * Moody's Reports Negative Outlook for Irish Banking System ----------------------------------------------------------- The fundamental credit outlook for the Irish banking system is negative, reflecting the increased potential for a further weakening in asset quality, loan volumes and profitability in a domestic economy that is now in recession, says Moody's Investors Service in its new Banking System Outlook for Ireland. Moody's negative credit outlook for the Irish banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades. "The Irish economy is now in recession, primarily due to a more pronounced weakening of the real estate market. This is likely to result in a substantial increase in bad debts for lenders, especially in the residential development sector, as well as lower lending volumes and weaker profitability," explains Ross Abercromby, a Moody's Vice-President/Senior Analyst and author of the report. "At the same time, the dislocation in the global markets has continued to weigh on the Irish banks' ability to raise funding, one result of which was the recently announced two- year guarantee from the Irish government for banks' deposits, senior debt, covered bonds and dated subordinated debt," the analyst adds. Moody's views the guarantee positively, and indeed has assigned backed-Aaa/Prime-1 ratings to securities maturing within the guarantee period, as it should restore market confidence, at least during the guarantee period, into the institutions' liquidity. However, as such support had been already factored into the current ratings and given the temporary nature of the guarantee (for a two year term) this will not impact the long-term bank deposit ratings or debt maturing after the end of the guarantee period of the six institutions. These ratings already incorporate uplift from their respective bank financial strength ratings as a result of potential systemic support. Moody's also notes that some of the Irish banks display relatively lower levels of capital that have left them less well prepared as they have entered a more challenging operating environment. However, Ross Abercromby explained that "the six institutions covered by the guarantee have all been required to deliver revised business plans to the regulator in the last week and Moody's expects capital adequacy to be a key factor in these, therefore given the capital injections seen at other banks across Europe and the USA Moody's would not rule out a similar process in Ireland. As part of this process Moody's would also expect to see some consolidation in the Irish market, although it is too early to discuss the possible rating implications." Overall, however, Moody's continues to believe that the financial strength of the Irish banking sector is relatively solid. The two largest banks, Allied Irish Banks and Bank of Ireland, have strong franchises supported by diversification of earnings by product and geography, and relatively good liquidity underpinned by a broad range of funding sources and stable, and indeed growing, deposit bases. These strengths mitigate to some extent the large exposure that the banks have to the country's residential and commercial real estate markets. The smaller institutions tend to be more focused on certain markets, e.g. in commercial property or residential mortgages, or are subsidiaries of foreign banks. The less diversified institutions tend to be rated at lower levels and, given their concentration on the Irish property market, Moody's views them less positively in the current environment. Moody's has taken rating actions on ten entities within the Irish banking sector since the start of the credit crisis, for a variety of reasons, including downgrades of parent banks, deteriorating asset quality and the expectation of higher provisioning. Given the rapid deterioration in the economic outlook, further downward adjustments of ratings are possible in 2008 and 2009. * IRELAND: Solvency at Risk; Draws Up Fresh Bail-Out for Banks -------------------------------------------------------------- Citing Michael Klawitter, a strategist at Dresdner Kleinwort, the Daily Telegraph reported Wednesday last week that the markets have begun to see a risk to the solvency of the Irish government amid talk of a fresh bail-out for its banks. Mr. Klawitter, as cited by the report, said the cost of insuring Irish sovereign debt through credit default swaps (CDS) has surged to 133 basis points, casting doubt on the financial capability of the country to back up the guarantees. According to the report, Ireland is vulnerable as financial services make up 9.8pc of GDP, including its 'Canary Dwarf' enclave of hedge funds. The liabilities of its lenders are twice Irish GDP, the report noted. There are fears that investors could start to shun sovereign debt in Western states where banks have outgrown the underlying economy, the report stated. Ulster Bank, the report recalled, warned Ireland's economy will contract by 4pc next year. As a member of the eurozone, Ireland cannot devalue or slash interest rates to cushion the downturn nor can it resort to a fiscal boost since the budget deficit is nearing 8pc of GDP, the report noted. However, Ronnie O'Toole, chief economist at National Irish Bank, said Ireland had low debt, a young population and would "get through this", the report added. The Taoiseach, Brian Cowen, told the Irish parliament Tuesday last week he was exploring "all options" to shore up Anglo Irish, Bank of Ireland and other lenders after the collapse of their share prices over recent days, the report recounted. He said the original EUR440 billion (GBP368 billion) bail-out agreed in September had been successful in containing a liquidity crisis but had since been overtaken by events in the global markets. The report recounted officials from Ireland's treasury and central bank are drawing up a new rescue plan, this time involving a direct infusion of money into the banks to raise core capital ratios to safer levels. =3D=3D=3D=3D=3D=3D=3D=3D=3D I T A L Y =3D=3D=3D=3D=3D=3D=3D=3D=3D ALITALIA SPA: Air-France Still Interested to Buy Minority Stake --------------------------------------------------------------- Air-France KLM reiterated its interest in acquiring a minority stake in Alitalia SpA, according to Business Report. Business Report quoted chief executive Air-France KLM Jean-Cyril Spinetta as saying the Paris-based carrier was still interested in buying a minority stake in the insolvent Italian airline. Air-France KLM, Business Report recalls, dropped a takeover offer for Alitalia in April after opposition from the state-controlled carrier's nine labor unions. 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. As reported in the TCR-Europe on November 7, 2008, Alitalia S.p.A. filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York. Italy's national airline experienced financial difficulties for a number of years caused, in large measure, by a combination of competition from low-cost air carriers, poor management and onerous union obligations, according to papers filed with the court. 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. In the petition filed October 29, 2008, Prof. Augusto Fantozzi, the appointed administrator, said the airline's financial difficulties have been and exacerbated by spiraling fuel prices. On Aug. 29, 2008, Alitalia declared insolvency and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi appointed Mr. Fantozzi as extraordinary commissioner. Under the Bankruptcy Bill, the Administrator has supplanted the directors and other management of Alitalia. FINMECCANICA SPA: Moody's Upgrades Ratings From Low-Bs ------------------------------------------------------ Moody's Investors Service confirmed the senior unsecured debt rating of Finmeccanica SpA and Finmeccanica Finance, SA at A3. Finmeccanica is a Government Related Issuer and the Baseline Credit Assessment is a 9, which maps to the equivalent of a Baa2 senior unsecured rating. In a related action, Moody's raised the ratings of the senior debt of DRS Technologies, Inc. to A3 from B1 and the subordinated debt to Baa1 from B3, and withdrew ratings on the DRS revolving credit, the convertible bond (converted) and the Corporate Family and Probability of Default ratings of B1. The rating outlook is stable. This completes the review of the Finmeccanica and DRS debt ratings opened on May 13, 2008. Pro-forma for the additional EUR1.2 billion of equity that Finmeccanica raised in connection with the DRS acquisition and the asset sales and cash flow since the transaction was announced, key metrics of retained cash flow to debt, debt to EBITDA and EBIT to interest are comparable to other issuers at the Baa rating level (equivalent to Finmeccanica's BCA). As well, the pro-forma credit metrics are similar to the levels Finmeccanica posted before the acquisition, and should improve over the near term with lower debt from the proceeds of asset sales and the free cash flow as Finmeccanica and DRS deliver their backlog. The stable outlook anticipates some modest near term improvement in the 8 % EBITA margin and somewhat lowered financial leverage from debt reduction. "Completing the EUR1.2 billion of equity in a timely manner was an important factor in confirming the rating, as the company fulfilled its promise to finance a meaningful portion of the transaction through equity", noted Bob Jankowitz, Senior Vice President at Moody's Investors Service. This was done despite the dilution that resulted from the weakened equity markets. Moody's anticipates only very modest acquisitions for some time as Finmeccanica works to merge the cultures and deliver on the backlog that is now nearly three times revenue. As well, Moody's expects that Finmeccanica will sustain its moderate dividend payout level, and will not purchase shares. Ratings on the DRS Notes were raised based on Finmeccanica's plan to issue an unconditional guarantee. The DRS senior notes will be guaranteed on a senior basis, and the DRS senior subordinated notes will be guaranteed on a subordinated basis. Finmeccanica is a Government Related Issuer and application of Moody's rating methodology using moderate support from the Italian government and low dependence adds two notches to the BCA, bringing the senior unsecured rating to A3. The Italian Treasury purchased about EUR250 million of Finmeccanica shares, preserving its stake at over 30%. Effectively, the Italian government controls Finmeccanica's board and management appointments because of its share position and because other shareholders are limited to a 3% stake. As well, the government can veto corporate activities if it concludes those activities are a challenge to national security. Finmeccanica is Italy's largest defense company and an important supplier elsewhere in the EU as well. The rating could be lowered with any indication that DRS's potential profits could be lower than expected because of loss of a major defense contract, or if the operating margin in Finmeccanica's Defense Electronics segment weakens. The rating or outlook could also be pressured down if Finmeccanica is unable to complete the remaining assets sales (which target proceeds of up to EUR600 million, in addition to the remainder of the STM shares), if the operating margin of Finmeccanica's helicopter and aeronautical segments weaken, or if retained cash flow to debt is sustained below the low 20% level. The rating could be raised with a consolidated operating margin sustained at around the 10% level, with return on capital (EBITA to average assets) improving to the 11% level and retained cash flow to debt approaching the 30% level, while continuing to focus its business around the three core units of defense electronics, aviation and helicopters. Upgrades: Issuer: DRS Technologies, Inc. -- Senior Subordinated Regular Bond/Debenture, Upgraded to Baa1 from B3 -- Senior Unsecured Regular Bond/Debenture, Upgraded to A3 from B1 Outlook Actions: Issuer: DRS Technologies, Inc. -- Outlook, Changed To Stable From Rating Under Review Issuer: Finmeccanica Finance S.A. -- Outlook, Changed To Stable From Rating Under Review Issuer: Finmeccanica S.p.A. -- Outlook, Changed To Stable From Rating Under Review Confirmations: Issuer: Finmeccanica Finance S.A. -- Senior Unsecured Conv./Exch. Bond/Debenture, Confirmed at A3 -- Senior Unsecured Medium-Term Note Program, Confirmed at A3 -- Senior Unsecured Regular Bond/Debenture, Confirmed at A3 Issuer: Finmeccanica S.p.A. -- Senior Unsecured Medium-Term Note Program, Confirmed at A3 -- Senior Unsecured Regular Bond/Debenture, Confirmed at A3 Withdrawals: Issuer: DRS Technologies, Inc. -- Probability of Default Rating, Withdrawn, previously rated B1 -- Corporate Family Rating, Withdrawn, previously rated B1 -- Senior Subordinated Regular Bond/Debenture, Withdrawn, previously rated LGD5, 84% -- Senior Secured Bank Credit Facility, Withdrawn, previously rated Ba1, LGD2, 12% -- Senior Unsecured Conv./Exch. Bond/Debenture, Withdrawn, previously rated B1, LGD3, 46% -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated LGD3, 46% Finmeccanica SpA, based in Rome, Italy, is one of the world's largest defense contractors. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D K A Z A K H S T A N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ENERGY COMMERCE: Creditors Must File Proofs of Claim by Jan. 2 -------------------------------------------------------------- LLP Company Energy Commerce Limited has gone into liquidation. Creditors have until Jan. 2, 2009, to submit written proofs of claims to: LLP Company Energy Commerce Limited Micro District Samal-2, 81-3 Almaty Kazakhstan ERTIS MAI: Creditors' Claims Deadline Slated for Jan. 2 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Ertis Mai & K insolvent on April 1, 2008. Creditors have until Jan. 2, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Lenin Str. 61 Pavlodar Kazakhstan GOLD SNUB: Creditors' Claims Filing Period Ends December 31 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Gold Snub insolvent on June 12, 2008. Creditors have until Dec. 31, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 KATA SECURITY: Creditors' Claims Due on December 31 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Kata Security insolvent. Creditors have until Dec. 31, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Kutuzov Str. 91/1 Pavlodar Kazakhstan Tel: 8 (7182) 54-98-55 KAZ INTER COM: Creditors Must Register Claims by December 31 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Kaz Inter Com insolvent on June 12, 2008. Creditors have until Dec. 31, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 KAZAKHSTAN ELECTRICITY: S&P Maintains 'BB+' Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB+' long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co., Kazakhstan's state-owned transmission grid operator. The outlook is negative. S&P applies a top-down rating approach to KEGOC, notching down two notches below the local currency rating on the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3). This reflects KEGOC's strategically important status to the Kazakh government as a provider of core infrastructure services. S&P estimates KEGOC's stand-alone credit quality at 'B+'. "The stand-alone credit quality on KEGOC is constrained by the company's aggressive financial policy, large grid investment program and associated construction risk, high foreign currency and floating interest risk exposure, and Kazakhstan's relatively weak power sector characteristics," said Standard & Poor's credit analyst Sergei Gorin. Kazakhstan's relatively low wealth, limited customer diversification, and historically delayed payments impair KEGOC's market position. These risks are mitigated by state support to KEGOC in the form of guarantees on most of its debt, supportive tariffs, and potential extraordinary support. KEGOC also benefits from its monopoly position in a stable and low-operating-risk electricity transmission business. On Sept. 30, 2008, according to the company's management, available liquidity reserves of Kazakhstani tenge (KZT) 6.7 billion covered its KZT3.6 billion of debt maturing over the next 12 months. The outlook is negative because the outlook on the sovereign is negative. The outlook also reflects S&P's expectation that KEGOC will remain closely integrated with the government as its 100% ultimate owner and will continue to benefit from various forms of state support, such as debt guarantees or equity increases. A change in the sovereign credit rating would not automatically result in a change in the rating on KEGOC; it would be subject to a separate review. "Were the government to deviate from its supportive policy or initiate a privatization process, KEGOC's credit risk would become more dependent on its weaker stand-alone credit profile, and this might put downward pressure on the ratings or the outlook," said Mr. Gorin. NURANI-INTERNATIONAL LLP: Creditors Must File Claims by Jan. 2 -------------------------------------------------------------- Foreign LLP Nurani-International has gone into liquidation. Creditors have until Jan. 2, 2009, to submit written proofs of claims to: Foreign LLP Nurani-International Office 71 Kazybek Bi Str. 50 Almaty Kazakhstan PAVLODAR TRANS: Creditors' Claims Deadline Slated for Dec. 31 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Pavlodar Trans insolvent. Creditors have until Dec. 31, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Kutuzov Str. 91/1 Pavlodar Kazakhstan Tel: 8 (7182) 54-98-55 PELEKANOM LLP: Creditors' Claims Filing Period Ends Dec. 31 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Pelekanom insolvent. Creditors have until Dec. 31, 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 STROY-MAXIMUM LLP: Creditors Must Register Claims by Jan. 2 ----------------------------------------------------------- LLP Construction Company Stroy-Maximum has declared liquidation. Creditors have until Jan. 2, 2009, to submit written proofs of claims to: LLP Construction Company Stroy-Maximum Jomartbaev Str. 12a Semey East Kazakhstan Kazakhstan Tel: 8 (7222) 67-04-42 TRANSIT INTER: Creditors' Claims Due on December 31 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Transit Inter Service insolvent. Creditors have until Dec. 31, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan * KAZAKHSTAN: Gov't Reveals US$21 Billion Rescue Package -------------------------------------------------------- The Financial Times reports Kazakhstan has unveiled a US$21 billion rescue package which includes emergency funding for the banking, property and agricultural sectors and small and medium sized businesses. The package, the report says, is equivalent to 20 per cent of the country's GDP. According to the report, Kazakhstan has been hit by the US subprime mortgage crisis and falling oil prices. The credit crunch, FT notes, stranded its banks with US$40 billion of foreign debts. The government, FT relates, has lowered its forecast for economic growth this year to 3 per cent from an earlier 5 per cent and anticipates growth of no more than 5 per cent next year. At least US$4 billion was required to stabilize the banking system and boost lending to the real economy, FT says, citing Kazakh prime minister Karim Massimov. FT states that under the rescue package: -- Kazakhstan's four leading banks have agreed to sell up to 25 per cent of their equity to the government; -- a US$1 billion distressed asset fund will be used to mop up bad bank loans; -- some US$3 billion will be for the construction industry and real estate; -- US$1 billion will go to agriculture to boost production and stave off food price inflation; -- US$1 billion cash injection will be used to help struggling small businesses will receive; and -- another US$1 billion will be invested in electricity, oil and transport projects. The rescue plan has been devised by the government in partnership with the National Bank and the financial supervisory agency, the FT says. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D K Y R G Y Z S T A N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D EMPATI LTD: Creditors Must File Claims by December 27 ----------------------------------------------------- LLC Empati Ltd. has declared insolvency. Creditors have until Dec. 27, 2008, to submit written proofs of claims to: Borodin Str. 1 Bishkek Kyrgyzstan Tel: (+996 312) 24-47-94 IKEEN GROUP: Creditors Must File Claims by December 27 ------------------------------------------------------ LLC Ikeen Group has declared insolvency. Creditors have until Dec. 27, 2008, to submit written proofs of claims to: Toktonaliev Str. 109 720052 Bishkek Kyrgyzstan Tel: (+996 312) 54-48-79 NEOMED-LABORATORY: Creditors Must File Claims by December 31 ------------------------------------------------------------ LLC Neomed-Laboratory has declared insolvency. Creditors have until Dec. 31, 2008, to submit written proofs of claims. The company can be reached at: (+996 312) 90-60-90 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D L U X E M B O U R G =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D LOGWIN AG: Moody's Maintains Sr. Subordinated Rating at 'Caa1' -------------------------------------------------------------- Moody's Investors Service has affirmed Logwin AG Corporate Family Rating of B2 and the senior subordinated rating of Caa1 on the EUR130 million notes due in 2012 but changed the outlook to negative from stable. The action was prompted by weakening company's operating profitability so far this year and by Moody's concerns on deteriorating market conditions in the broader logistic industry. "The rating action takes into consideration the company's thin operating margins that allow for modest absorption to potential shocks in the market at time when market conditions remain unsettled, and reflects Moody's view that the logistic segment in general might experience a period of soft demand while Logwin remains exposed to specific industry sectors that are also going through difficult trading conditions", said Paolo Leschiutta a Moody's Vice President - Senior Analyst and responsible for Logwin. "Moody's recognizes the progress made by the company over the last few quarters in improving its financial profile, thanks to strict control on cash generation achieved through tight working capital management and rigid investment policies, however the rating agency notes the modest deterioration in operating margins during the current FY ending December 2008 that is likely to result in weaker credit metrics than previously anticipated", continued Mr. Leschiutta. During the first nine months of FYE December 2008, despite a modest increase of revenues of 2.9%, the company reported a drop in EBIT pre exceptional of 17.1% corresponding to a reduction in EBIT margin, as measured by the company, to 1.6% over the period, compared to 2% the year before. Operating performances in the Solutions divisions were particularly affected as the company remains exposed to the Automotive, Fashion, Media and Consumer Goods segments that are all experiencing tough trading conditions, with currently modest outlook for recovery. Moody's however, also recognizes the continued growth experienced by the Air + Ocean and Road + Rail divisions, that partially compensate for difficulties in the Solution division, although warns that trading over recent weeks has become more difficult while operating margins in the Road + Rail remains at break even level. "The negative outlook reflects Moody's expectations that market conditions are likely to remain subdued over the short term and that weak demand resulting in under utilization of main Logwin warehouses is likely to result in weakening credit metrics." Logwin's B2 Corporate Family Rating reflects the group solid market position, the good business diversification and the adequate liquidity profile, although reliant on bank support to renew the 364-day credit lines. However, the rating also reflects the exposure to the Fashion, Media and Automotive sectors, the relatively high customers' concentration and the fact that thin operating margins allow for modest flexibility to adapt to changing market conditions. Although key credit metrics are expected to remain within the current rating category, the Corporate Family Rating could be downgraded in case of further erosion in operating performance below current level or in case of a change in Moody's perception of current market conditions. The rating could also be downgraded in the case of financial leverage increasing towards 6x, a deterioration in the company's liquidity profile and/or a contraction of the company interest coverage, measured as EBIT/Interest towards 1x. The last rating action on Logwin was on 16 July 2007, when Moody's affirmed the B2 Corporate Family Rating and changed the outlook from negative to stable. Ratings affirmed: -- Logwin Corporate Family Rating and Probability of Default Rating of B2; -- The Senior Subordinated Caa1 (LGD6, 90%) rating on the EUR 130 million notes due 2012; The outlook is negative. Based in Luxembourg, Logwin AG is a medium-sized provider of specialist and traditional logistics services, operating primarily in Germany and Austria but also in Eastern Europe and Asia (mainly China). The group specializes in providing entire supply chain logistics services and solutions, including (1) overland road, rail, air transportation and sea freight services; (2) warehousing and supply chain management; and (3) design and execution of customized logistics solutions. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D N E T H E R L A N D S =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D LYONDELL BASELL: Weak Financial Results Cue Fitch's Rating Cuts --------------------------------------------------------------- Fitch Ratings has downgraded Netherlands-based petrochemicals company Lyondell Basell Industries AF SCA's Long-term Issuer Default rating to 'B-'(B minus) from 'B+' while maintaining a Negative Outlook. At the same time, Fitch has affirmed LBI's Short-term IDR at 'B'. The downgrade of the Long-term IDR reflects LBI's weaker than expected year-to-date September 2008 results which were particularly affected by the ongoing price volatility of purchased hydrocarbon feedstock and energy. Other factors also weighed down LBI's results and liquidity, including the temporary downtimes of North American production facilities related to hurricanes Ike and Gustav, as well as the turnaround and downtime of the company's Houston refinery. Fitch believes that LBI's deteriorated credit metrics as of end-September 2008, including estimated net leverage of 7.4x, cash interest cover of 1.5x and fixed charge cover of 1.1x, are commensurate with a 'B-' (B minus) rating. In conjunction with LBI's diminished cash flow head room to cover minimum fixed charges, the agency is further concerned about LBI's available liquidity sources - these have declined by around 44% to US$1.575 million by end-September. Current liquidity sources also include a US$750 million revolving credit facility provided by shareholder Access Industries that expires in September -09. Fitch has maintained a Negative rating Outlook as LBI's business and highly leveraged financial profile make it particularly vulnerable to the effects of a major economic slowdown in the company's main markets of North America and Europe. In addition, Fitch notes that LBI's liquidity situation may not provide sufficient funding if major restructuring efforts are required to adjust excess production capacities. The downgrade of the second lien recovery ratings for Lyondell Basell Finance Co to 'RR6' from 'RR5' reflects the different assumptions used by Fitch in its latest recovery estimates. The agency has now assumed a blended distressed enterprise value to EBITDA for the group in the low end of 5-6x as opposed to the high end of this range as per the previous RR5 ratings. This is driven by a re-assessment of the petrochemical demand and capacity balances, as Fitch now expects a protracted recovery in revenue and profit growth in the medium- to longer-term. LBI, owned by Access Industries, was formed in December 2007 as a result of a merger between chemical groups, Basell and Lyondell. It is the world's third-largest independent chemical company. The rating actions applicable to LBI and its related entities are: Lyondell Basell Industries AF SCA (renamed from Basell AF SCA and subsidiaries) -- Long-term IDR: downgraded to 'B-'(B minus) from 'B+'; maintains Negative Outlook -- Senior notes: downgraded to 'CCC'/'RR6' from 'B-'(B minus)/'RR6' Lyondell Chemicals Company -- Long-term IDR: downgraded to 'B-'(B minus) from 'B+'; maintains Negative Outlook -- Secured debentures: downgraded to 'BB-' (BB minus)/'RR1' from 'BB+'/'RR1' Lyondell Basell Finance Co -- Fixed-rate second-lien loan: downgraded to 'CCC'/'RR6' from 'B'/'RR5' -- Floating-rate second-lien loan: downgraded to 'CCC'/'RR6' from 'B'/'RR5' -- Floating-rate third-lien loan: downgraded to 'CCC'/'RR6' from 'B-'(B minus)/'RR6' Equistar Chemicals L.P. -- Long-term IDR: downgraded to 'B-'(B minus) from 'B+'; maintains Negative Outlook -- Secured debentures: downgraded to 'BB-'(BB minus)/'RR1' from 'BB+'/'RR1' Millenium America Inc. -- Long-term IDR: downgraded to 'B-'(B minus) from 'B+'; maintains Negative Outlook -- Senior debentures: downgraded to 'CCC'/'RR6' from 'B-'(B minus)/'RR6' As outlined in Fitch's October 30, 2008 rating action, the bridge loan ratings are subject to execution and completion of the amendment and restatement as specified in the Form 8-K SEC filing on October 23, 2008. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D P O R T U G A L =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D HIPOTOTTA 9: Moody's Puts Final Ba3 Rating on Class E Notes ----------------------------------------------------------- Moody's assigns definitive credit ratings to these classes of Notes issued by Hipototta No. 9 Limited. -- Aaa to the EUR155,000,000 Class A1 Mortgage Backed Floating Rate Notes due 2061 -- Aaa to the EUR1,282,600,000 Class A2 Mortgage Backed Floating Rate Notes due 2061 -- Aa2 to the EUR34,800,000 Class B Mortgage Backed Floating Rate Notes due 2061 -- A2 to the EUR34,800,000 Class C Mortgage Backed Floating Rate Notes due 2061 -- Baa3 to the EUR15,500,000 Class D Mortgage Backed Floating Rate Notes due 2061 -- Ba3 to the EUR27,300,000 Class E Mortgage Backed Floating Rate Notes due 2061 The transaction represents the securitization of Portuguese residential mortgage loans originated by Banco Santander Totta S.A., rated Aa3/Prime-1. The assets supporting the Notes are prime mortgage loans secured on residential properties located in Portugal. The portfolio will be serviced by Banco Santander Totta S.A. The ratings of the Notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, the legal and structural integrity of the issue and the credit quality of the parties involved in the transaction. The definitive ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion the structure allows for timely payment of interest and ultimate payment of principal with respect to the Class A1, Class A2, Class B, Class C, and Class D Notes on or before the legal final maturity date. Moody's ratings address only the credit risk associated with the transaction. Other non-credit risks have not been addressed but may have significant effect on the yield to investors. Moody's initially analyzed and monitors this transaction using the rating methodology for EMEA RMBS transactions as described in the Rating Methodology reports. Moody's based the provisional ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance and bank' internal ratings information; (iii) the swap agreements hedging the interest rate risk; (iv) the credit enhancement provided by the reserve fund, the subordination of the notes, and the excess spread; and (v) the legal and structural integrity of the transaction. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D R U S S I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D BANK SOYUZ: S&P Downgrades Counterparty Credit Rating to 'B-' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term counterparty credit rating on Russia-based Bank Soyuz to 'B-' from 'B' and its Russia national scale rating to 'ruBBB-' from 'ruA-'. The ratings were removed from CreditWatch with negative implications, where they were placed on Oct. 7, 2008, on trading losses and tighter financial flexibility. The outlook is negative. At the same time, the 'C' short-term counterparty credit rating on the bank was affirmed. "The rating action reflects the bank's significantly deteriorated liquidity position, massive customer deposit outflow, and large trading losses related to the ongoing negative trend in the Russian financial markets," said Standard & Poor's credit analyst Maria Malyukova. Soyuz is ultimately owned by Basic Element (not rated), one of Russia's largest financial and industrial groups. The rating on Bank Soyuz incorporates a one-notch uplift from its stand-alone creditworthiness to reflect ongoing liquidity support from its parent and the government. Basic Element's ability to support Soyuz has weakened and is constrained by current market conditions. The bank experienced massive customer deposit withdrawal in October 2008 as a result of the stressed environment and flight to quality. The bank has wracked up significant trading losses along with the recent plummeting of the Russian stock and debt markets. S&P is unable to assess the exact size of the bank's losses, because some of the bank's securities were carried through a separate entity, which has been sold. S&P believes that these losses are major, and have significantly eroded the bank's capitalization. The negative outlook reflects the bank's increasingly tight liquidity, high exposure to market risk, and pressure on its capital standing and financial performance. "We would lower the ratings if S&P's concerns regarding the liquidity and capitalization are not eased by sufficient shareholder or government support, or if the ongoing turbulence in Russia's financial markets places higher stress levels on the bank," said Ms. Malyukova. DONSKIE STAINLESS: Creditor Must File Claims by January 14 ---------------------------------------------------------- Creditors of LLC Donskie Stainless Steel (TIN 6162038753) have until Jan. 14, 2009, to submit proofs of claims to: I. Prokopenko Insolvency Manager Office 45 Floor 1 Building B-2 Stanislavskogo/Bratskiy Str. 8a/10, 11/13 Russia The Arbitration Court of Rostovskaya will convene at 2:20 a.m. on Feb. 5, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A53=967252/2008-S1=9631. The Debtor can be reached at: LLC Donskie Stainless Steel Industrialnaya Str. 2 Bataysk Russia EVRAZ GROUP: Gets US$1.8 Billion Loan from Vnesheconombank ---------------------------------------------------------- Evraz Group SA has received a US$1.8 billion loan to refinance its foreign liabilities, RIA Novosti reports citing business paper Vedomosti. According to the report, Vedomosti said the Supervisory Board of state-controlled national development bank, Vnesheconombank (VEB), approved on Friday loans worth a total of US$2 billion to refinance deals concluded by companies in the Russian mining and microelectronic industries. Terms of the loan have not been disclosed and Evraz Group representatives declined to comment, however, RIA Novosti says a source close to VEB told Vedomosti that Evraz Group had received the US$1.8 billion as requested out of that sum. RIA Novosti relates that according to Vedomosti, Evraz Group's debt totaled about US$10.24 billion as of late September, of which short-term liabilities stood at US$4.14 billion, with US$2.2 billion due to be repaid by the end of this year. IPSCO Acquisition As reported in the Troubled Company Reporter-Europe on Nov. 19, 2008, Reuters said Evraz Group requested a US$1.8 billion loan from VEB to refinance debt incurred to acquire Canadian steel pipe maker IPSCO. Citing Vedomosti, RIA Novosti relates Dmitry Smolin, an analyst with Uralsib investment group, said that US$800 million out of Evraz Group's US$2.2 billion short-term debt included a loan taken by the Group to buy IPSCO. IPSCO's assets were pledged as security for the loan and Evraz could lose them if the company failed to repay the sum due, the analyst noted. Few days prior to the VEB loan request, Evraz secured a US$364 million one-year loan from state-controlled VTB Bank to pay taxes, Reuters said in a Nov. 13 report. Reuters recalled Evraz said it is cutting production and capital expenditures at a number of its plants due to the global financial crisis, and may be forced to cut production within Russia by up to a quarter this month. Its European and North American operations are not to be affected, Reuters noted. Vnesheconombank, according to Reuters, has been entrusted by the Kremlin with the task of distributing a US$50 billion rescue package to help Russian companies refinance a total US$120 billion of Western loans by the end of 2009. VTB Bank meanwhile operates in the commercial banking sector. About Evraz Group S.A. Evraz Group S.A. and its subsidiaries are involved in the production and distribution of steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. During the year ended December 31, 2007, Evraz produced 16.4 million tons of crude steel. Evraz's principal assets comprise three of the steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in Italy, Evraz Vitkovice Steel in the Czech Republic, and Evraz Oregon Steel Mills headquartered in the United States. In October 2007, the Company completed the buyout of NTMK, Zapsib, KGOK and VGOK, and the Nakhodka Commercial Sea Port. On January 16, 2008, the Company acquired Claymont Steel Holdings, Inc. In June 2008, the Company completed the acquisition of IPSCO's Canadian plate and pipe business from SSAB. * * * As reported in the Troubled Company Reporter-Europe on Nov. 18, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long- term corporate credit, bank loan, and senior unsecured debt ratings on Evraz Group S.A. S&P also revised its outlook on Evraz and its core subsidiary Mastercroft Ltd. to stable from positive due to the sharp deterioration in market conditions in the global steel sector and the group's high levels of short-term debt. IRBITSKIY AUTO-AGGREGATE: Creditors Must File Claims by Jan. 14 --------------------------------------------------------------- Creditors of OJSC Irbitskiy Auto-Aggregate Plant (TIN 6611001418) have until Jan.14, 2009, to submit proofs of claims to: P. Podporin Insolvency Manager Office 211 Belinskogo Str. 34 GSP-573 620219 Yekaterinburg Russia The Arbitration Court of Sverdlovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-4523/2008=96S11. The Debtor can be reached at: OJSC Irbitskiy Auto-Aggregate Plant Revolutsii Str. 27 623850 Irbit Sverdlovskaya Russia IZHEVSKIY AUTOMATIVE: Creditor Must File Claims by December 14 -------------------------------------------------------------- Creditors of LLC Izhevskiy Automative Equipment Maintenance Plant (TIN 1833045015) have until Dec. 14, 2008, to submit proofs of claims to: O. Tebenkova Temporary Insolvency Manager 50 Let Pionerii Str. 26 426033 Izhevsk Udmurtia Russia The Arbitration Court of Udmurtia will convene at 10:00 a.m. on Feb. 20, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A71=968371/2008-G15. The Debtor can be reached at: LLC Izhevskiy Automative Equipment Maintenance Plant Vladivostokskaya Str. 1a Izhevsk Udmurtia Russia KALACHINSKIY CONSTRUCTION: Court Names Insolvency Manager --------------------------------------------------------- The Arbitration Court of Omskaya appointed O. Revin as Insolvency Manager for LLC Kalachinskiy Construction Materials Plant. The case is docketed under Case No. A46=9619500/2008. He can be reached at: Pushkina Str. 13-/14 644046 Omsk Russia The Debtor can be reached at: LLC Kalachinskiy Construction Materials Plant Cherepove Str. 100 Kalachinsk 646905 Omskaya Russia KAMA SHIP-BUILDING: Creditor Must File Claims by December 14 ------------------------------------------------------------ Creditors of OJSC Kama Ship-Building Plant (TIN 5908002280) have until Dec. 14, 2008, to submit proofs of claims to: A. Demin Temporary Insolvency Manager G. Zvezda Str. 13 614045 Perm Russia The Arbitration Court of Permskiy will convene at 10.00 a.m. on Apr. 29, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A50=9614431/2008-B2. The Debtor can be reached at: OJSC Kama Ship-Building Plant Buksirnaya Str. 4 614023 Perm Russia LEVOBEREZHNY MINERAL: Creditor Must File Claims by December 14 -------------------------------------------------------------- Creditors of CJSC Levoberezhny Mineral Water Bottling Plant (TIN 5507073340) have until Dec. 14, 2008, to submit proofs of claims to: P. Krupodra Temporary Insolvency Manager Tyulenina Str. 1/1/64 644010 Omsk Russia The Arbitration Court of Omskaya will convene at 10:00 a.m. on Apr. 14, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A46=9619603/2008. The Debtor can be reached at: CJSC Levoberezhny Mineral Water Bottling Plant Omsk Russia LINIYA: Secures Financing from Russia's State Bank VTB ------------------------------------------------------ Maria Kiselyova of Reuters reports that hypermarket chain Liniya has secured financing from Russia's state bank VTB. The bank, the report relates, had set a one-year RUR3 billion (US$108.8 million) credit limit for OJSC Grinn Corp, the parent company of Liniya. The company will use the funds to replenish its working capital and settle accounts with suppliers, the report notes. MOUNTING TECHNOLOGIES: Creditor Must File Claims by December 14 --------------------------------------------------------------- Creditors of LLC Construction and Mounting Technologies (TIN 6154070094) have until Dec. 14, 2008 to submit proofs of claims to: M. Sogomonov Temporary Insolvency Manager Buynakskaya Str. 2/56 344037 Rostov-on-Don Russia The Arbitration Court of Rostovskaya will convene at 3:45 p.m. on Dec.16, 2008 to hear bankruptcy supervision procedure. The case is docketed under Case No. A53=9614157/2008-S1=968. The Court is located at: The Arbitration Court of Rostovskaya Stanislavskogo Str. 8a Rostov-on-Don Russia The Debtor can be reached at: LLC Construction and Mounting Technologies Sotsialisticheskaya Str. 154 Taganrog Russia TAYGINSKIY CRUSHED: Creditor Must File Claims by December 14 ------------------------------------------------------------ Creditors of LLC Tayginskiy Crushed Stone Plant (TIN 7413010780) have until Dec. 14, 2008, to submit proofs of claims to: S. Kudashev Temporary Insolvency Manager Post User Box 106 620000 Yekaterinburg Russia The Arbitration Court of Chelyabinskaya will convene at 11:30 a.m. on Jan. 29, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A76-13988/2008-60- 157. The Debtor can be reached at: LLC Tayginskiy Crushed Stone Plant Maslobazovaya Str. 5 Chelyabinsk Russia TRANS-LINE LLC: Creditor Must File Claims by December 14 -------------------------------------------------------- Creditors of LLC Trans-Line have until Dec. 14, 2008, to submit proofs of claims to: A. Demin Temporary Insolvency Manager G. Zvezda Str. 13 614045 Perm Russia The Arbitration Court of Perm will convene at 10:30 a.m. on Feb. 20, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A50=9612136/2008-B7. The Debtor can be reached at: LLC Trans-Line Izhevskaya Str. 12a 614064 Perm Russia YELIZAVEYINSKIY PILOT: Creditors Must File Claims by January 14 --------------------------------------------------------------- Creditors of OJSC Yelizavetinskiy Pilot-Production Plant (TIN 6664003384) have until Jan.14, 2009, to submit proofs of claims to: E. Chu Insolvency Manager Posadskaya Str. 21/312 620086 Yekaterinburg Russia Tel: 233-75-61 The Arbitration Court of Sverdlovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-4437/2008-S11. The Debtor can be reached at: OJSC Yelizavetinskiy Pilot-Production Plant Rudny 620054 Yekaterinburg Russia * LENINGRAD OBLAST: S&P Upgrades Issuer Ratings to 'BB/ruAA' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it had raised the long-term issuer and Russia national scale ratings on Leningrad Oblast to 'BB/ruAA' from 'BB-/ruAA-'. The outlook is stable. "The upgrade reflects the oblast's solid economic and revenue base, large liquidity, and low debt," said Standard & Poor's credit analyst Irina Pilman. Leningrad Oblast, located in the northwest of The Russian Federation (foreign currency BBB+/Negative/A-2, local currency A-/Negative/A-2, Russia national scale 'ruAAA'), suffers from low financial flexibility and predictability in the context of the Russian intergovernmental and tax systems. Moderate economic concentration and continuous expenditure pressures further constrain the ratings. However, the oblast enjoys a solid and buoyant economic environment in its location surrounding the City of St. Petersburg (BBB/Stable/--); a low debt burden; solid reserves that exceed short-term borrowing needs; and sound budgetary performance. Thanks to its favorable location surrounding St Petersburg, however, and continuous inflows of investments in energy generation, manufacturing, transport, and communication, the oblast benefits from a solid, diversifying, and rapidly growing economy. Investment comprised about 40% of the gross regional product, which grew at more than 9% on average over the past five years. S&P expects economic growth to cool slightly over the next two years, however, because the progress of any new projects hangs on the evolution of the financial markets. The economic slowdown may cause tax revenue growth to decline somewhat, especially in 2009. However, S&P expects the oblast administration to be able to contain expenditure growth so that, ultimately, operating balances decline only moderately to a 6.5% annual average over 2009-2011. S&P expects the oblast's year-end 2008 cash reserves to be sufficient to finance its capital needs over the next few years, with only marginal recourse to borrowing. The oblast's free cash as of Oct. 1, 2008, was 1.6x the average monthly operating expenditures expected in 2008. The bulk of the oblast's liquidity reserves (RUR5.7 billion or 82% of free cash) was on deposit in several local banks. The stable outlook reflects S&P's expectation that Leningrad Oblast's revenues will continue to benefit from a solid economic base and that the administration will manage to stabilize the operating performance at an annual average of 6.5% of operating revenues, while financing its investment program without materially increasing its debt burden over 2009-2011. "Future positive rating actions will depend on the oblast strengthening its budgetary performance and reserves above S&P's expectations," said Ms. Pilman. * RUSSIA: VEB Grants US$2BB Loan to Mining, Electronic Firms ------------------------------------------------------------- Guy Faulconbridge of Reuters reports that Russia's state bank VEB approved on Friday a US$2 billion loan for domestic mining and electronics firms to refinance their foreign debt. VEB, as cited by Reuters said, the total amount of approved VEB loans for refinancing the foreign debts of domestic companies now stands at US$10 billion. =3D=3D=3D=3D=3D=3D=3D=3D=3D S P A I N =3D=3D=3D=3D=3D=3D=3D=3D=3D CEMEX SAB: Fitch Corrects Rating Release to Include Rinker IDR -------------------------------------------------------------- Cemex's ratings were downgraded by Fitch Ratings on Oct. 31, 2008. In that press release, the downgrade and withdrawal of the Rinker IDR was omitted. Fitch issued an amended press release to include that rating action: Fitch Ratings has downgraded these ratings of Cemex, S.A.B. de C.V. and related entities: -- Cemex foreign currency Issuer Default Rating to 'BB+' from 'BBB-'; -- Cemex local currency IDR to 'BB+' from 'BBB-'; -- Cemex Espana S.A. (Cemex Espana) IDR to 'BB+' from 'BBB-'; -- Senior unsecured debt obligations of Cemex and Cemex Espana to 'BB+' from 'BBB-'; -- Rinker Materials Corporation US$150 million senior unsecured notes due 2025 to 'BB+' from 'BBB-'; -- Cemex long-term national scale rating to 'AA-(mex)' from 'AA+(mex)'; -- Cemex short-term national scale rating to 'F1(mex)' from 'F1+(mex)'; The Rating Outlook is Negative. In addition to this action, these ratings have been downgraded and withdrawn: -- Rinker Group Limited (Rinker) Long Term IDR to 'BB+' from 'BBB-'; -- Rinker Short Term IDR to 'B' from 'F3'. The rating actions reflect weaker than expected operating results and higher leverage levels than previously anticipated due to economic weakness in most of the company's important markets. Additionally, adverse market conditions have slowed the pace of the company's divestiture program and should continue to make this process challenging over the next year. Further incorporated into the ratings is Cemex's reduced liquidity position, with the company facing significant maturities during 2009 amid a difficult credit market, resulting in increased refinancing risk. The ratings also consider the company's strong global business position as an integrated cement player, robust cash flow generation ability and good geographic diversification, with a presence in over 50 countries. While the company has been able to reduce debt by close to US$3 billion since the Rinker acquisition, leverage remains higher than originally anticipated. At Sept. 30, 2008, Cemex had total adjusted debt of US$23.3 billion. Adjusted debt includes total debt plus perpetual debt and operating leases; considering annual estimated EBITDAR of US$4.9 billion, the total adjusted debt to EBITDAR ratio is 4.8 times (x), still high for the rating category. While the company should continue to focus its efforts on debt reduction, prevalent weak operating market conditions in its main markets, as well as revised economic growth prospects for most of the regions in which it operates should result in a slower than expected pace of deleveraging for the company. Fitch's ratings incorporate the recent measures announced by the company that are focused on increasing free cash flow generation. Cemex recently announced a cost cutting program that will provide US$500 million in recurrent annual savings, starting in 2009. The company has also reduced its capital expenditure program for 2009 to US$845 million, coming down from US$2 billion in 2008 and has targeted additional assets to divest. These measures should provide additional free cash flow to be used towards debt repayment. Cemex's liquidity position is tight, as the company faces maturities of US$5.7 billion during 2009. Of this figure, US$3 billion consist of a syndicated loan related to the Rinker acquisition which matures in December 2009. The company has started negotiating with its main banks, and has closed commitments totaling close to US$1.3 billion to extend the maturity until December 2010. The remaining US$2.6 billion in maturities in 2009 are spread throughout the year and consist of US$310 million of Certificados Bursatiles issued in the local capital markets and US$2.3 billion in bank debt. Additionally, the recent volatility in currencies resulted in mark-to-market losses on derivatives instruments held by the company totaling US$711 million as of Oct. 14, 2008. Cash posted on margin calls totaled US$445 million; further margin calls are limited as the company has unwound most of its cross currency swaps positions related to its peso denominated debt and all of its capital hedge position. Cash available at this date was US$630 million. CEMEX is the third-largest cement producer in the world based on production capacity of approximately 97 million metric tons and operates in more than 50 countries. The company is also the global leader in the ready mix concrete market with sales of over 80.5 million cubic meters and an important global player in the aggregates business with sales of 222.7 million tons. In 2007, the company's net revenues and EBITDA reached US$21.7 billion and US$4.6 billion, respectively. Pro forma including full year results from Rinker, EBITDA reached US$5.1 billion. CEMEX's U.S. operations generated 32% of consolidated EBITDA followed by the Mexico with 24% and Spain with 11%. FONDO DE TITULIZACION: S&P Holds Junk Rating on Class F Notes ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit rating on the class D notes issued by Fondo de Titulizacion de Activos Santander Financiacion 1. At the same time, S&P removed the class C notes from CreditWatch negative. S&P also affirmed the ratings on the class A, B, C, E, and F notes. Thisrating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. This analysis showed that the credit enhancement available for the class D notes was not sufficient to maintain the current ratings. This was mainly driven by further deterioration of the pool's performance. Current delinquency and default information was input into S&P's cash flow analysis. The results are that the class D can no longer withstand S&P's 'BB+' rating stresses but pass at 'BB'. At the same time, all the other classes of notes pass S&P's stresses at their respective rating levels. In October 2008, delinquent loans showed a further increase, both as a percentage of outstanding collateral balance and in absolute terms. Since July 2008, loans in arrears for more than 90 days have increased by about 25% to almost EUR72.8 million from EUR58.2 million. As of November 24, 2008, they represent 6.22% of the outstanding pool from 4.50% on the previous payment date. In January 2008, the arrears for more than 90 days increased to above the trigger level (2.5%), causing the revolving period to terminate and the transaction to start amortizing. Given the current macroeconomic environment in Spain and the performance of the collateral since the beginning of the year, S&P expects a significant portion of current severe delinquencies (loans in arrears for more than 180 days) to roll into defaulted loans in the near future. This will have a negative effect on the ability to generate excess spread and may result in further draws on the reserve fund. In line with the sharp increase in loans in arrears for more than 180 days, in July 2008, S&P observed a sharp increase in write- offs that caused a draw on the reserve fund of EUR2.1 million. On the last payment date, the structure generated enough excess cash to replenish the reserve fund to its required level. The write-offs in July were cured using the cash reserve, the excess spread generated by the transaction in the period, and additional available funds provided by a "withholding fee amount in favor of Santander Central Hispano". This withholding fee was held in the treasury account after each payment date and was generated from arbitrary retention of residual cash generated by the structure. This provision of cash represented an important part of the available funds up to July 2008. The notes, issued in 2006, are backed by a portfolio of Spanish consumer loans originated by Banco Santander S.A. (AA/Stable/A- 1+). Ratings List Ratings Lowered Fondo de Titulizacion de Activos Santander Financiacion 1 EUR1,914.3 Million Asset-Backed Floating-Rate Notes Ratings ------- Class To From ----- -- ---- D BB BB+ Ratings Affirmed and Removed From CreditWatch Ratings ------- Class To From ----- -- ---- C A A/Watch Neg Ratings Affirmed Class Rating ----- ------ A AAA B AA E B- F CCC- =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D S W E D E N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D * Big 3 May Ask Congress for Measures That Would Spur Demand ------------------------------------------------------------ John D. Stoll and Monica Langley at The Wall Street Journal report that General Motors Corp., Ford Motor Co., and Chrysler LLC might ask the Congress to take measures to spur consumer demand, in addition to a US$25 billion bailout. Tom Krisher at The Associated Press reports that the Congress has asked GM, Chrysler, and Ford Motor Co. to show how they would ensure that: -- the government would be reimbursed, -- the government would get a share in future profits, -- how the companies would stop dividend payments, -- how the companies would stop lavish executive pay packages, -- how the companies would meet fuel-efficiency standards, and -- how the companies would address their health care and pension obligations to workers. GM CEO Rick Wagoner told the press on Thursday that the firm has already shared a detailed plan confidentially with the Bush administration and key staffers in Washington. "Historically, things like your future product plans, technology plans and financial plans would be competitively sensitive information, and so for a variety of reasons, we wouldn't be sharing that publicly," The AP quoted Mr. Wagoner as saying. According to WSJ, concern is rising in Detroit that it will be difficult to show lawmakers how Ford Motor, GM, and Chrysler can return to profitability with sales at their current depressed level. WSJ quoted an executive at one of the auto companies as saying, "There is no way any car company can make money at the current demand level. The government has to get credit flowing so that the market goes back to at least 14 million to 15 million [vehicles].... We can figure out how to survive at that level." WSJ reports that a spokesperson for Sen. Charles Schumer said that the official will: -- ask the Federal Reserve to make financing available for the auto companies' lending arms, which would allow them to offer more auto loans; and -- also ask the Treasury to speed approval of GMAC LLC's request to become a bank holding company. Auto dealers and a few members of the Congress called for tax incentives or other measures designed to improve car buying, WSJ reports. Michigan Gov. Jennifer Granholm said that she is working with the auto makers to come up with a "definitive plan" to present to Congress on Dec. 2, which is also the deadline for Ford Motor, GM, and Chrysler to present their business plans. One way of getting help from TARP would be to have banks that get some of the US$700 billion bring financing to GM, Ford Motor, and Chrysler, or provide those companies with short-term loans to keep them from running short of cash, WSJ relates, citing Gov. Granholm. Need for More Cost Cutting Measures GM and Chrysler must implement drastic spending cuts, to ensure their companies live long enough to use any loans they get, The AP states, citing industry analysts and bankruptcy experts. According to The AP, GM and Chrysler face huge expenses and a lack of revenue, as car buyers are having trouble getting financing or are delaying big purchases due to uncertainty about their jobs. Citing experts, the report says that inside the headquarters of GM and Chrysler, teams are likely to be seeking ways to reduce expenses any way they can, including delays in new investments. The AP relates that GM said on Friday that it is canceling its traditional holiday party for the media, and will replace that party with a US$5,000 donation to a journalism scholarship fund. Chrysler CEO Bob Nardelli said that the company has a cash committee that scrutinizes requests every week, according to the report. Lawmakers, says The AP, also criticized Chrysler and GM's high labor costs and the jobs bank, in which laid-off employees get 95% of their pay plus benefits even though they aren't working. According to The AP, the United Auto Workers said that it already cut the jobs bank and placed time limits on it in new contracts signed with the firms in 2007. The report states that more than 3,500 employees are still getting paid for not working, and that number will increase as the companies continue layoffs. GM should seek help from the United Auto Workers union, The AP reports, citing Northeastern University corporate turnaround professor Harlan Platt. "The bank right now is the union, and they're going to have to give up something in the near term so they have something very valuable in the long term," the report quoted Mr. Platt as saying. The AP relates that UAW President Ron Gettelfinger said on Thursday that the union is at the bargaining table already and that it "would welcome all the other stakeholders to the table to make some concessions." Citing a source familiar with the matter, WSJ says that GM is negotiating some of its financial obligations, including terms of debt and money it owes to UAW. According to the report, the source said that GM's board is open to considering all options for GM's survival and will be meeting several times this week. Ford motor and Chrysler executives said on Sunday that they are also developing plans, the report states. John D. Stoll and Sharon Terlep at WSJ relates that, as part of a drive to cut US$15 billion in costs, GM is not even keeping its 562 wall clocks in working order, now stops escalators at its Renaissance Center headquarters at 7:00 p.m., has changed the type of wipe-up towels it buys, used cheaper pencils, and eliminated voice mail in the plants, the report states. According to The AP, GM said on Friday that it would extend holiday shutdowns and make other production cuts at five North American factories. GM also accelerated the closure of a truck plant in Ontario, the report says. GM and Chrysler, WSJ relates, have stopped or slowed work on new vehicles to cut development expenditures, and didn't hold news conferences at the Los Angeles Auto Show last week. WSJ reports that Ford Motor said earlier this month that it will lay off about 10% of its North American salaried work force, and cut its capital spending, manufacturing, information-technology, and advertising costs. GM won't be giving out in 2009 its "Mark of Excellence" awards to its top-selling dealers, and has cut the fleet of cars for reporters to test drive, WSJ states. Suppliers May Demand Cash on Delivery Dow Jones Newswires relates that three major auto suppliers -- which provide GM with everything from brakes to entertainment systems -- said on Thursday that the company may have to pay cash on delivery for parts if it fails to secure government bailout. According to Dow Jones, GM already acknowledged the threat of suppliers switching to cash on delivery from the traditional 60- to 90-day payment terms. Dow Jones quoted an official at one supplier as saying, "No one wants [cash on delivery], but we have to protect ourselves at this point. We have other customers that need products and we have to pay our people to keep our plants open." According to Dow Jones, GM Chief Financial Officer Fritz Henderson said in a conference call, "We've not seen [cash on delivery] in any substantive way, and we'll just have to continue to work with them." Ellen J. Kullman May Leave Board Joann S. Lublin at The Wall Street Journal reports that DuPont Co. directors have asked the company's CEO Ellen J. Kullman to quit her post at General Motors Corp.'s board before the agreed June 2009 deadline. DuPont wants Ms. Kullman to leave GM sooner because she "lacks time to breathe," WSJ states, citing a source. Ms. Kullman had agreed to resign from GM's board when DuPont directors named her as the company's CEO. MarketWatch reported in September 2008 that Ms. Kullman was elected CEO as of Jan. 1. According to WSJ, a GM spokesperson said that the company's directors are meeting several times a week by phone as the company seeks financial aid from the government, among other options. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. * Obama Team Denies Explore Prepack Bankruptcy for Big 3 -------------------------------------------------------- Bankruptcy Law360 reports that President-elect Barack Obama's transition team has reportedly said it is not exploring a prepackaged bankruptcy plan for the automakers. According to the report, officials from Obama's team quickly denied reports that surfaced Friday morning that the transition team had contacted at least one bankruptcy law firm to discuss a prepackaged deal. American Bankruptcy Institute says the Obama transition team is exploring a swift, prepackaged bankruptcy for automakers as a possible solution to the industry's financial crisis. ABI says the Detroit Three's troubles may affect the financial sector. Citing a Wall Street Journal report, ABI notes that the automakers owe more than US$100 billion to their bankers and bondholders, and Wall Street is starting to wonder how much of that will be paid back. As reported by the Troubled Company Reporter on November 19, 2008, Siobhan Hughes at Dow Jones Newswires said Chrysler CEO Robert Nardelli said his company wants US$7 billion of the requested US$25 billion in emergency funding from the government. According to Dow Jones, GM CEO Rick Wagoner said that the company wants US$10 billion to US$12 billion of the requested funding. According to Dow Jones, Mr. Wagoner told Sen. Bob Corker at a Senate Banking Committee hearing, "We felt that we should get our proportionate market share of that." Ford Motor Co. CEO Alan Mulally said that his company is seeking US$7 billion to US$8 billion, Dow Jones reported. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D S W I T Z E R L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D AEROGIE.PLUS JSC: Creditors Must File Proofs of Claim by Dec. 15 ---------------------------------------------------------------- Creditors owed money by JSC Aerogie.plus are requested to file their proofs of claim by Dec. 15, 2008, to: Eduard Bouchard Kirchstrasse 42 8807 Freienbach Switzerland The company is currently undergoing liquidation in Freienbach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 15, 2008. ART ON STREETS: Deadline to File Proofs of Claim Set Dec. 15 ------------------------------------------------------------ Creditors owed money by LLC Art on Streets are requested to file their proofs of claim by Dec. 15, 2008, to: Lindenstrasse 16 6341 Baar Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 8, 2008. DAL-DALCO JSC: Creditors Have Until Dec. 12 to File Claims ---------------------------------------------------------- Creditors owed money by JSC Dal-Dalco are requested to file their proofs of claim by Dec. 12, 2008, to: Vorstadt 30 Mail Box: 623 6301 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 15, 2008. EYELIES LLC: Proofs of Claim Filing Deadline is Dec. 15 ------------------------------------------------------- Creditors owed money by LLC EyeLies are requested to file their proofs of claim by Dec. 15, 2008, to: Andreas Husi Liquidator Buchbergstrasse 51 9425 Thal Switzerland The company is currently undergoing liquidation in Thal. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 13, 2008. GULLOTTI LLC: Creditors' Proofs of Claim Due by Dec. 11 ------------------------------------------------------- Creditors owed money by LLC Gullotti are requested to file their proofs of claim by Dec. 11, 2008, to: JSC Von Graffenried Treuhand Waaghausgasse 1 3011 Bern Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 11, 2008. MUSICAL HERITAGE: Dec. 12 Set as Deadline to File Claims -------------------------------------------------------- Creditors owed money by JSC Musical Heritage are requested to file their proofs of claim by Dec. 12, 2008, to: Oberneuhofstrasse 5 6340 Baar Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 15, 2008. RULAG JSC: Creditors Must File Proofs of Claim by Dec. 10 --------------------------------------------------------- Creditors owed money by JSC Rulag are requested to file their proofs of claim by Dec. 10, 2008, to: Gurzelenstrasse 12 4512 Bellach Switzerland The company is currently undergoing liquidation in Bellach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 23, 2008. TTG DIENSTLEISTUNGEN: Deadline to File Claims Set Dec. 15 --------------------------------------------------------- Creditors owed money by LLC TTG Dienstleistungen are requested to file their proofs of claim by Dec. 15, 2008, to: Peter Greutert Liquidator Mail Box: 1130 5401 Baden Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 19, 2008. UBS AG: Swiss Government Offers More Financial Help --------------------------------------------------- Bloomberg News reports Federal Banking Commission Director Daniel Zuberbuehler told SonntagsZeitung in an interview the Swiss government is willing to assist UBS AG with more capital if financial markets don't calm down. News of the funding offer sent the bank's shares up by 21 percent to 13.78 francs on Nov. 24, Bloomberg News relates. Inflated Fees Separately, Bloomberg News reports that in his wrongful- termination lawsuit, a former official alleges UBS charged inflated fees at an US$11.7 billion U.S. real-estate fund by overvaluing some commercial properties. According to the report, Richard Trusz, 52, who was managing director and head of valuations at UBS Realty Investors LLC in Hartford, Connecticut, said in court papers that before being fired in August he repeatedly clashed with his bosses over returning fees to clients, including public pension funds in Alaska and Iowa. "No disclosures have been made to clients, no errors have been corrected to reflect accurate information for the respective quarters and no excess fees collected by defendant UBS Realty have been refunded," Mr. Trusz said in a Sept. 22 complaint obtained by Bloomberg News. The complaint was filed under Connecticut's so-called whistleblower law in Superior Court in Hartford, Bloomberg News says. "The allegations made by Mr. Trusz are completely without merit and have not been substantiated," UBS spokesman Kris Kagel said in an e-mail to Bloomberg News. "UBS stands by the valuation-review process we have used and the values that have been reported, and the firm intends to defend itself vigorously in this matter." The report says the bank has filed a motion to dismiss the case. The lawsuit is Richard Trusz vs. UBS Realty Investors LLC and UBS AG, State of Connecticut Docket No. HHD-CV-08-4038185 S. On Fourth Quarter Results As reported in the Troubled Company Reporter-Europe on Nov. 5, 2008, UBS said it expects that the conditions seen at the beginning of fourth quarter will continue to affect clients' assets, and therefore the bank's fee-earning businesses. The bank said fourth quarter results will be impacted by a possible reversal of own credit gains and a loss on the equity in the fund to be controlled by the Swiss National Bank (SNB). In October, UBS and the SNB have reached an agreement to transfer up to US$60 billion of currently illiquid securities and other assets from UBS's balance sheet to a separate fund entity. Under the SNB pact, the assets to be transferred to the fund include approximately US$31 billion (as per valuation at September 30, 2008) of primarily cash securities, already disclosed as concentrated risk positions relating to US real estate-related securities, US student loan auction rate securities and other US student loan securities, and assets from the US reference-linked note program (RLN). Upon the completion of the transaction, UBS said its net exposure to these risk categories will be reduced to nearly zero (compared with US$44 billion on June 30, 2008 and US$32 billion at September 30, 2008), with residual long positions held by UBS in these asset classes hedged through existing short positions, including credit protection embedded in the RLN programs. UBS expects to transfer assets to the fund primarily over fourth quarter 2008 and first quarter 2009. According to UBS, since the announcement of the SNB transaction, credit spreads on its debts have narrowed. If this persists, some or most of the accumulated CHF4.8 billion own credit gain will reverse. In addition, a loss will be recognized on the sale of the equity in the fund sold to the SNB =96 partly offset by recognition of the value of UBS's option to buy the equity back in the future. The Zurich-based bank, Bloomberg News notes, has lost US$48.6 billion in the subprime mortgage market and also faces a U.S. investigation into whether it illegally helped wealthy investors avoid taxes. The bank will be holding an extraordinary general meeting of shareholders on Thursday, November 27. About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D U K R A I N E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ASU COAL: Creditors Must File Claims by December 6 -------------------------------------------------- Creditors of State OJSC Asu Coal Automatics (code EDRPOU 04674818) have until Dec. 6, 2008, to submit proofs of claim to: Mrs. Karaush Julie Liquidator / Insolvency Manager Tumanian Str. 21/3 83077 Donetsk Ukraine Tel: 8(062)349-42-40 The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 22, 2008. The case is docketed as 27/301B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: State OJSC Asu Coal Automatics Khirurgicheskaya Str. 22 Donetsk Ukraine COMPLEX OJSC: Creditors Must File Claims by December 5 ------------------------------------------------------ Creditors of OJSC Complex (code EDRPOU 14308724) have until Dec. 5, 2008, to submit proofs of claim to: Mr. Panchenko Roman Liquidator / Insolvency Manager P.O.B. 554 18002 Cherkassy Ukraine Tel: 8(067)474-03-95 The Arbitration Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 23, 2008. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: OJSC Complex Smila Str. 44 18000 Cherkassy Ukraine IZIUM FURNITURE: Creditors Must File Claims by December 6 --------------------------------------------------------- Creditors of CJSC Izium Furniture Plant (code EDRPOU 00275197) have until Dec. 6, 2008, to submit proofs of claim to: Mr. Romaschenko Victor Liquidator Ap. 1 Zheleznodorozhnaya Str. 16 Izium 64301 Kharkov Ukraine The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 23, 2008. The case is docketed as B-24/93-07. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: CJSC Izium Furniture Plant Marshal Fedorenko Str. 2 Izium 64304 Kharkov Ukraine KAMIANKA SUGAR: Creditors Must File Claims by December 6 -------------------------------------------------------- Creditors of LLC Runa Subsidiary Company Kamianka Sugar Plant (code EDRPOU 32895522) have until Dec. 6, 2008, to submit proofs of claim to: Mr. Nogovsky Igor Temporary Insolvency Manager Blagovesnaya Str. 414/1 18000 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy supervision procedure. The case is docketed as 10/4896. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: LLC Runa Subsidiary Company Kamianka Sugar Plant Pobeda Str. 2 Kamianka 20800 Cherkassy Ukraine LASTAR LLC: Creditors Must File Claims by December 6 ---------------------------------------------------- Creditors of LLC Lastar (code EDRPOU 32311176) have until Dec. 6, 2008, to submit proofs of claim to: Mr. Sunitsa Victor Liquidator P.O.B. 70 01042 Kiev Ukraine Tel: 5293037 8(050)543-8948 The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 46/279. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Lastar Kanev Str. 41a 04215 Kiev Ukraine NORMA CAPITAL: Creditors Must File Claims by December 5 ------------------------------------------------------- Creditors of LLC Norma Capital (code EDRPOU 35136493) have until Dec. 5, 2008, to submit proofs of claim to: Mr. Baskakov Alexander Liquidator Gayevaya Str. 18 Korzhy Barishevsky 07544 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 16, 2008. The case is docketed as 50/313. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Norma Capital Chapayev Str. 10 Kiev Ukraine OREOL LLC: Creditors Must File Claims by December 6 --------------------------------------------------- Creditors of LLC Oreol Subsidiary Company Zodchy (code EDRPOU 31462737) have until Dec. 6, 2008, to submit proofs of claim to: Mr. Monastyrsky Frants Liquidator / Insolvency Manager Verbitsky Str. 8/24 Ternopol Ukraine The Arbitration Court of Ternopol commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 23, 2008. The case is docketed as 11/B-1099. The Economic Court of Ternopol Ostrozsky Str. 14a 46000 Ternopol Ukraine The Debtor can be reached at: LLC Oreol Subsidiary Company Zodchy Karpenko Str. 22/111 Ternopol Ukraine OST-WEST LLC: Creditors Must File Claims by December 5 ------------------------------------------------------ Creditors of LLC Company Ost-West (code EDRPOU 34972289) have until Dec. 5, 2008, to submit proofs of claim to: Mr. Finko Andrew Liquidator / Insolvency Manager Ovrazhnaya Str. 29 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 16, 2008. The case is docketed as 5/131B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Company Ost-West Ovnatanian Str. 4 83017 Donetsk Ukraine S-MEDIA GROUP: Creditors Must File Claims by December 5 ------------------------------------------------------- Creditors of LLC S-Media Group (code EDRPOU 33835684) have until Dec. 5, 2008, to submit proofs of claim to: Mr. Baskakov Alexander Liquidator Gayevaya Str. 18 Korzhy Barishevsky 07544 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 16, 2008. The case is docketed as 50/310. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC S-Media Group Dmitrovskaya Str. 71 Kiev Ukraine SERVICE-PLUS LLC: Creditors Must File Claims by December 5 ---------------------------------------------------------- Creditors of LLC Company Service-Plus (code EDRPOU 35082485) have until Dec. 5, 2008, to submit proofs of claim to: Mr. Finko Andrew Liquidator / Insolvency Manager Ovrazhnaya Str. 29 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings on the company on Oct. 16, 2008. The case is docketed as 5/132B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Company Service-Plus Kirov Str. 90 83037 Donetsk Ukraine =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D U N I T E D K I N G D O M =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D ABACUS CONTACT: Appoints Joint Liquidators from Tenon ----------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of Abacus Contact Centre Ltd. on Nov. 7, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England BEE FLY: Names Joint Liquidators from BDO Stoy ---------------------------------------------- C. K. Rayment and S. Hopper of BDO Stoy Hayward LLP were appointed joint liquidators of Bee Fly Ltd. on Nov. 4, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through BDO Stoy Hayward LLP at: 125 Colmore Row Birmingham B3 3SD England C & N INTERNATIONAL: Appoints Joint Administrators from PKF ----------------------------------------------------------- Edward T. Kerr and Brian J. Hamblin of PKF (UK) LLP were appointed joint administrators of C & N International Ltd. on Nov. 12, 2008. The company can be reached at: C & N International Ltd. Pannell House 159 Charles Street Leicester LE1 1LD England COLORSET: Goes Into Liquidation; Blames Tight Lending Restrictions ------------------------------------------------------------------ Angela Jameson at The Times reports that Colorset has gone into liquidation, resulting to the loss of 14 jobs. Colorset, the report relates, blamed its demise on its bank HSBC for threatening the company with soaring interest rates and charges when it was at its most vulnerable, after losing an important contract worth GBP220,000. The report recounts Colorset's directors decided to put the firm into a company voluntary arrangement (CVA), a legally binding agreement with creditors, which allows a company to trade on. However, the report notes the conditions offered by the bank was so harsh that the company could not proceed with the CVA and had to go into liquidation. "We were told that our bank charges would increase 'dramatically', but they couldn't tell us by how much. An undisclosed monthly management charge would be imposed and it became clear that the new consolidated loan would be at 'considerably more' than the 6 per cent over base originally offered," Tom Phelan, Colorset's director was quoted by the report as saying. A spokesman for HSBC, on the other hand, maintained that it has tried to help the company through what has undoubtedly been a very difficult trading period for them, stressing it was the directors of the company who took the decision to approach the liquidators, not the bank, the report relates. The only option left is for the firm to be sold to a larger rival, the report states. The Government, the report adds, has been appealing to high street banks to step up their lending to small firms, which was supposed to be one of the conditions of its GBP500 million bank bailout last month. Based in Bermondsey, southeast London, Colorset supplied printed large-format graphics for Labour Party conferences and events for six years. Its clients included Barclays, Boots, Gucci and the BBC. DECO 6: Fitch Affirms 'BB' Rating on GBP24.09 Mil. Class D Notes ---------------------------------------------------------------- Fitch Ratings has downgraded the class B and class C ratings of DECO 6 - UK Large Loan 2 plc (DECO 6). A Negative Outlook has been assigned to the class B. The rating action is: -- GBP63.65 million class A1 due July 2017 (XS0235682845) affirmed at 'AAA'; Outlook Stable -- GBP208.04 million class A2 due July 2017 (XS0235683223) affirmed at 'AAA'; Outlook Stable -- GBP34.42 million class B due July 2017 (XS0235683736) downgraded to 'AA-' (AA minus) from 'AA'; Outlook revised to Negative from Stable -- GBP39.30 million class C due July 2017 (XS0235684114) downgraded to 'A-' (A minus) from 'A'; Outlook Negative -- GBP24.09 million class D due July 2017 (XS0235684544) affirmed at 'BB'; Outlook Negative The deteriorating property market conditions have weakened the creditworthiness of the loans securitized in this transaction. This has resulted in the downgrades of classes B and C. Although the assets have not been re-valued since closing in December 2005, it is likely that the recent value declines have fully offset and in fact reversed the value gains that occurred between 2005 and 2006. Fitch estimates that the values of the properties are likely to have declined by up to 30% based on prevailing market conditions. Two loans in the portfolio are secured over shopping centers undergoing re-development. The Brunel loan is secured over a shopping center in the South West of England and the St Enoch loan is secured over shopping center in Glasgow, Scotland. This has resulted in a significant decline in rental income since closing, on a like for like basis there has been a total reduction of 32.6%, mainly attributable to the St Enoch Shopping Centre. Overall vacancy has also increased to 9.3% from 0.5% at closing. Again, this is mainly attributable to the St Enoch Shopping Centre that, at October 2008, showed a vacancy rate of 17%. Both the DSCR covenant in the Brunel loan and the ICR covenant in the St Enoch loan were suspended last year, at the borrowers' request. Progress on re-lettings will be key to monitoring the ratings. In the coming months, the expected economic recession will inevitably lead to difficulties in achieving re-lettings as well as an increased number of tenant defaults, putting strain on rental income. Fitch believes the retail sector in particular is vulnerable to tenant defaults as UK consumers reduce their spending. ELISION LTD: Names Joint Administrators from PwC ------------------------------------------------ Robert William Birchall and David Christian Chubb of PricewaterhouseCoopers LLP were appointed joint administrators of Elision Ltd. on Nov. 10, 2008. The company can be reached at: Elision Ltd. Ames House 7 Duke of York Street London SW1Y 6LA England FULHAM ROAD: Moody's Puts Low-B Ratings on Three Classes of Notes ----------------------------------------------------------------- Moody's Investors Service announced it has downgraded its ratings of six classes of notes issued by Fulham Road Finance Limited. Fulham Road is a synthetic CDO squared transaction arranged and managed by KBC. The portfolio comprises of corporate reference obligations and ten bespoke CDO obligations also referencing corporate names. According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to direct exposures to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 15, 2008 and Washington Mutual Inc., which was seized by federal regulators on Sept. 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase. In addition, the portfolio has significant exposure to the Banking, Insurance and Buildings and Real Estate sectors which continue to deteriorate in the current economic environment. The rating actions are: Fulham Road Finance Limited: (1) EUR70,000,000 Class A Floating Rate Credit-Linked Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (2) EUR95,000,000 Class B Floating Rate Credit-Linked Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (3) EUR40,000,000 Class C Floating Rate Credit-Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (4) EUR20,000,000 Class D Floating Rate Credit-Linked Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (5) EUR15,000,000 Class E Floating Rate Credit-Linked Notes -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (6) EUR15,000,000 Class F Floating Rate Credit-Linked Notes, -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 GAMBLE TRACKLINE: Taps Joint Liquidators from BDO Stoy ------------------------------------------------------ G. N. Lee of Begbies Traynor and D. J. Power of BDO Stoy Hayward LLP were appointed joint liquidators of Gamble Trackline Services Ltd. on Nov. 7, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through BDO Stoy Hayward LLP at: Commercial Buildings 11-15 Cross Street Manchester M2 1BD England HANSA: Goes Into Administration; West Ham Not Affected ------------------------------------------------------ The Daily Telegraph's Jeremy Wilson reports that Hansa, the holding company of football club West Ham United plc, has gone into administration. The report relates that according to vice-chairman Asgeir Fridgeirsson, Hansa had "started the process of administration". However, he noted there would be no day-to-day impact on the club. "It is not affecting the operation of West Ham, there is no debt within West Ham from Hansa or vice-versa," Mr. Fridgeirsson was quoted by the report as saying. "He put GBP30 million into the club last year, it is not a loan as some owners of clubs. It was paid in as equity. There is a clean sheet there. He did not put any debts on to the club to pay off any debts related to the acquisition of the club. The entity is not affected by this." "There is no money going from the club to the owner. It is fire- walled. The operation will go on =96 it is unaffected by this development," he added. West Ham's owner Bjorgolfur Gudmundsson, the report recounts, lost an estimated GBP230 million following the nationalization of Landsbanki and one of his companies, Samson Holdings, have recently filed for administration. HEATHMANS: To Enter Into Liquidation ------------------------------------ West London-based mastering studio Heathmans is expected to enter into liquidation in early December, Music Week reports. According to the report, Heathmans' director Maria Archer engaged David Rubin and Partners to instruct her on entering liquidation after attempts to keep the business afloat ultimately failed. The report notes that David Rubin and Partners is likely to be the liquidator in this case, although this will eventually be decided by the Heathmans' directors. MORTGAGE MINT: Winding-Up Order Sought by Legal & General --------------------------------------------------------- Joe McGrath at the Financial Times reported last week that Legal & General applied to Nottingham County Court for a winding- up order against Doncaster-based adviser Mortgage Mint. According to the FT, L&G decided to seek legal assistance in closing down Mortgage Mint after the intermediary member failed to respond to requests to repay commission from lapsed policies. "It would appear that the company is not in a good state and we have not been able to get any recourse from them," Berni Ryan, a spokeswoman for L&G was quoted by the FT as saying. The FT recalled Berni Ryan, a spokeswoman for L&G, told Money Management that the FSA has since delisted the firm and has withdrawn its authorization to trade. L&G, the FT disclosed, appointed Eversheds as its legal advisers. The FT meanwhile noted the winding up order is still going through the courts and was expected to complete at the end of November. NORHAM HOUSE: Taps Joint Administrators from BDO Stoy ----------------------------------------------------- David Gilbert and Antony Nygate of BDO Stoy Hayward LLP were appointed joint administrators of Norham House 1119 Ltd. on Nov. 11, 2008. The company can be reached through BDO Stoy Hayward LLP at: 55 Baker Street London W1U 7EU England PREMIER FOODS: Scraps Dividend; Defers Covenant Test to March 31 ---------------------------------------------------------------- Premier Foods plc issued last week an interim management statement for the 17 weeks ended October 25, 2008. Highlights: * Group sales up 9% in the period and 8% year to date * Group Trading profit(2) in line with our expectations * Positive consumer response to Hovis relaunch * Manufacturing rationalization program completed * RHM and Campbell's synergies continue to develop in line with plan * Ongoing review of capital structure. Constructive discussions with lending banks continue. Deferral of December 31, 2008 covenant test to March 31, 2009. 2008 Interim dividend will no longer be paid Robert Schofield, Chief Executive, said: "I am pleased to report that Premier is benefiting from the strong platform that we have built through the acquisition and integration of the RHM and Campbell's businesses. As stated previously, we expected progress in 2008 to be weighted towards the second half and we have seen trading profit increase in line with our expectations as the benefits from the manufacturing rationalization program and our actions to recover higher input costs have been realized. "We have seen both good sales volume and value growth over the last two months in our Grocery division and that momentum has continued into November. Our broad portfolio of category leading brands and retailer branded products is demonstrating a natural resilience in the current economic conditions. Our relaunch of Hovis has been positively received by consumers and our Chilled & Ireland division is benefiting from improved volumes." David Kappler, Chairman, said: "As previously announced, Premier is reviewing a range of options to accelerate the reduction of Group debt in order to establish a more appropriate long-term capital structure given the fundamental change in the credit markets. As part of this review, the Company has entered into discussions with its lending banks, which are expected to continue into the first quarter of 2009. Premier and the lending banks have agreed that, with the review ongoing, it would be appropriate to defer the date of the next covenant test from December 31, 2008 to March 31, 2009. "In these circumstances, the Board has determined not to pay the 2008 interim dividend and will consider the future dividend policy as part of the long term capital structure review but it is the Board's intention to resume dividend payments when debt levels permit. The Board is confident that these measures will facilitate the changes to our capital structure, enabling the business to continue pursuing its successful growth strategy" Sales The Group achieved sales growth of 9% over the four months to October 2008 compared to the same period last year, which reflected both the impact of pricing across the business and volume growth in its Grocery division. Year to date sales are 8% ahead of the same period last year. Trading profit has improved in line with expectations as the benefits of the integration synergies and cost recoveries are realized. Grocery Sales for the four months to October 2008 were 9% ahead of the same period in 2007 and 5% ahead year to date. Through September and October, the Group has seen increasing volumes across a wide range of its categories demonstrating the resilience of its portfolio in this challenging economic environment. Hovis Sales for the four months to October 2008 were 11% ahead of the same period in 2007 and 14% ahead year to date. The Group is delighted by the consumer response to the Hovis relaunch and new advertising, which combined with the quality and range improvements provide it with a strong platform going forward. Hovis' market share has seen improvement in October despite intense promotional activity by some of its competitors and brand health key performance indicators, such as "preference on quality" and "worth paying more for", have seen particularly good progress since the relaunch. Chilled & Ireland Sales for the four months to October 2008 were 7% ahead of the same period in 2007 and 4% ahead year to date. The Group's Meat- free business continues to grow sales volume and value and its chilled retailer branded business is benefiting from the additional contracts gained in the middle of the year. Despite the tough economic conditions in Ireland, its business there is showing strong profit development as integration synergies flow through. Transformation Program The Group is delighted by the continued progress it has made on the integration of RHM and Campbell's and its has now closed eight of the factories scheduled for closure. The last factory, in Wythenshawe, is due to close at the end of this week. It remains on track to deliver the GBP113 million of annual cost savings that it identified when it acquired the businesses. Financial Position As previously announced, Premier is reviewing a range of options to accelerate the reduction of Group debt in order to establish a more appropriate long-term capital structure. As part of this review, the Company has entered into discussions with its lending banks, which are expected to continue into the first quarter of 2009. As previously stated, Premier anticipates that it would have met its covenant tests at December 31, 2008. However, with the review ongoing, Premier and its lending banks have agreed that it would be appropriate to defer the date of the next covenant test from December 31, 2008 to March 31, 2009. In consideration of this a fee of GBP4.9 million will be paid to the lending banks. In these circumstances, the Board has determined not to pay the 2008 interim dividend that was due to be paid on January 2, 2009 and will consider the future dividend policy as part of the long term capital structure review but it is the Board's intention to resume dividend payments when debt levels permit. Premier will provide further updates regarding this review as and when appropriate. Trading Outlook The strong sales growth seen in September and October has continued. November and December are important trading periods for Premier and the Group's expectations for the full year remain unchanged. Premier's portfolio of staple food products and leading brands is providing us with a resilient base in the more difficult economic environment. Headquartered in Birmingham, England, Premier Foods -- http://www.premierfoods.co.uk/-- manufactures Ambrosia custard and rice pudding, Branston pickle, Hartley's jams and marmalade and Sarsons vinegar. ROYAL BANK: Shareholders Back Government Bail-Out Plan ------------------------------------------------------ 100Mortgages reports that at a meeting on Thursday in Edinburgh, Royal Bank of Scotland shareholders voted in favor of a GBP20 billion government bail-out plan, putting 60% of the bank in public hands. According to the report, RBS, which had been hit by the banking crisis, will be offering GBP15 million in new ordinary shares to shore up its finances. The government, the report adds, will also buy GBP5 billion in preference shares. The report however notes that the shareholders will not want the shares that RBS will be offering them as they are trading well below the 65.5p offer price. The TCR-Europe, citing Bloomberg News, reported on Oct. 15, 2008, that RBS wrote down GBP5.9 billion of assets this year and posted a loss of GBP761 million in the first half of the year amid rising defaults and a slumping housing market in Britain and the U.S., where it lends to consumers and companies through its Citizens unit. The bank may also take losses of as much as EUR500 million (US$673 million) on holdings tied to Icelandic banks. Headquartered in Edinburgh, Scotland, The Royal Bank of Scotland Group plc (RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The Company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On Oct. 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. SOUTHERN PACIFIC: S&P Removes Ratings on 3 Tranches From NegWatch ----------------------------------------------------------------- Following a review of Lehman Brothers' participation in Southern Pacific Securities 05-1 PLC (SPS 05-1), Southern Pacific Securities 05-3 PLC (SPS 05-3), and Southern Pacific Securities 06-1 PLC (SPS 06-1), Standard & Poor's Ratings Services has removed from CreditWatch negative the ratings on the senior tranches issued by these three deals. The junior notes of SPS 05-3 and SPS 06-1 remain on CreditWatch negative due to pool performance, while SPS 05-1 has undergone sufficient de-leverage to warrant reinstating the CreditWatch positive placement of all junior notes. SPS 05-1 contained two interest rate caps provided by Lehman. The first cap hedged rises in LIBOR with a strike of 8% and was due to expire after the next three interest payment dates (June 2009); the second cap had already expired in Dec. 2006. Following a review of SPS 05-1, S&P has concluded that without replacing the cap the ratings would be unaffected and therefore S&P has revised the CreditWatch placements on the B1c to E notes issued in this deal to CreditWatch positive, in line with their placements pre- Lehman insolvency. This transaction has experienced a substantial increase in credit enhancement; the current pool factor is 18.32%. SPS 05-3 contained an interest cap that hedged rises in LIBOR with a strike of 8% and was due to expire in two IPDs time (March 2009). It also had an interest rate cap that hedged the fixed- rate loans with a strike of 4.90% again terminating in two IPDs time (also March 2009). Although the second cap had been providing support to the issuance, any payment to be received in the next IPD is minimal. This payment can be provided by the revenue receipts held in the interest rate cap proceeds reserve ledger which, as of September 2008, held GBP1,654,338.47. Support provided by the cap was GBP131,074 on the Sept. 2008 IPD. Thus, S&P has concluded that without replacing the cap, the ratings would be unchanged and therefore the CreditWatch negative placements of the E1c, ETc, and FTc notes remain, in line with their status pre-Lehman insolvency. SPS 06-1 contained similarly structured caps to SPS 05-3. Firstly, an interest cap that hedged rises in LIBOR with a strike of 8%, due to expire in two IPDs time (March 2009), and secondly, an interest rate cap that hedged the fixed-rate loans with a strike of 4.91%, again terminating in two IPDs time. The second cap had been providing support to the issuance. However, any payment received in the next IPDs can be provided by the revenue receipts held in the interest rate cap proceeds reserve ledger. This ledger currently holds GBP554,727. S&P does not expect any receipts from the cap to have exceeded amounts currently held in this ledger. Support provided by the cap on the Sept. 2008 payment date totalled GBP312,986.97. Thus, S&P has concluded that without replacing the cap, the ratings would be unchanged and therefore the CreditWatch negative placements of the E1c, Etc, and FTc notes remain in line with their status pre-Lehman insolvency. The CreditWatch negative placements of junior notes in SPS 05-3 and SPS 06-1 are based on a decline in the key performance indicators for those deals. As of June 2008, losses since inception of the SPS 05-3 portfolio increased to 1.01% from 0.82%. In the March 2008 payment period, S&P's index for nonconforming deals in interest payment period 10 is 0.59% for the 2005 vintage. Repossessions outstanding comprise 4.98% of the current portfolio. Additionally, 90+ day delinquencies for the SPS 06-1 portfolio as of June 2008 are significantly high at 31.96%, while S&P's nonconforming index is 24.53%. The portfolio performance has resulted in an increase in risk for the excess spread notes, with the notes receiving no notional reduction since June 2007 for SPS 05-3 and since March 2007 for SPS 06-1. S&P will resolve these CreditWatch placements, together with any effects on the ratings on any of the notes in due course. Ratings List * Ratings Removed From CreditWatch Negative Southern Pacific Financing 05-1 PLC GBP489.7 Million And EUR306 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2a AAA AAA/Watch Neg A2c AAA AAA/Watch Neg Southern Pacific Securities 05-3 PLC GBP135 Million And EUR304.3 Million And $100 Million Mortgage- Backed Floating-Rate Notes Plus An Over Issuance Of GBP14 Million Mortgage-Backed Floating-Rate Notes And GBP4 Million Mortgage- Backed Deferrable-Interest Notes Rating ------ Class To From ----- -- ---- A2a AAA AAA/Watch Neg A2c AAA AAA/Watch Neg A2c DACs AAA AAA/Watch Neg B1a AA AA/Watch Neg B1c AA AA/Watch Neg C1a A A/Watch Neg C1c A A/Watch Neg D1a BBB BBB/Watch Neg D1c BBB BBB/Watch Neg DTc BBB BBB/Watch Neg Southern Pacific Securities 06-1 PLC GBP140.45 Million, EUR157.85 Million And $199.15 Million Mortgage- Backed Floating-Rate Notes Plus An Over Issuance Of GBP13.68 Million And GBP2.88 Million Deferrable Interest Notes Rating ------ Class To From ----- -- ---- A2a AAA AAA/Watch Neg A2c AAA AAA/Watch Neg A2c DACs AAA AAA/Watch Neg B1c AA AA/Watch Neg C1a A A/Watch Neg C1c A A/Watch Neg D1a BBB BBB/Watch Neg D1c BBB BBB/Watch Neg DTc BBB BBB/Watch Neg * CreditWatch Placements Revised Southern Pacific Financing 05-1 PLC GBP489.7 Million And EUR306 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B1c AA/Watch Pos AA/Watch Neg C1c A/Watch Pos A/Watch Neg D1c BBB/Watch Pos BBB/Watch Neg E BB/Watch Pos BB/Watch Neg * Ratings Kept On CreditWatch Negative Southern Pacific Securities 05-3 PLC GBP135 Million And EUR304.3 Million And $100 Million Mortgage- Backed Floating-Rate Notes Plus An Over Issuance Of GBP14 Million Mortgage-Backed Floating-Rate Notes And GBP4 Million Mortgage- Backed Deferrable-Interest Notes E1c BB/Watch Neg BB/Watch Neg Etc BB/Watch Neg BB/Watch Neg FTc B/Watch Neg B/Watch Neg Southern Pacific Securities 06-1 PLC GBP140.45 Million, EUR157.85 Million And $199.15 Million Mortgage- Backed Floating-Rate Notes Plus An Over Issuance Of GBP13.68 Million And GBP2.88 Million Deferrable Interest Notes E1c BB/Watch Neg BB/Watch Neg Etc BB/Watch Neg BB/Watch Neg FTc B/Watch Neg B/Watch Neg UBS AG: Deteriorating Credit Quality Cues Moody's to Junk Rating --------------------------------------------------------------- Moody's Investors Service has downgraded its rating of one class of notes issued by UBS AG, Jersey Branch. According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on Sept. 8, 2008 and two Icelandic banks, specifically Kaupthing Bank hf and Glitnir Banki hf. Rating action is: UBS AG, Jersey Branch: Series 6116 CHF 50,000,000 Fixed Rate Notes due 2017 linked to the credit of a portfolio of Reference Entities managed by JPMorgan Asset Management (UK) Limited -- Current Rating: Caa3 -- Prior Rating: A2 -- Prior Rating Action Date: Oct. 25, 2007 WOOLWORTHS GROUP: Main Shareholder Puts Forward Alternative Plan ---------------------------------------------------------------- Helen Power at The Times reports that Ardeshir Naghshineh, Woolworths' biggest shareholder, met with lenders Monday and put forward an alternative plan in an attempt to block a sale of the group's retail division to Hilco. According to the report, Mr. Naghshineh, who holds a 10% stake in Woolworths, is proposing a deal that would allow him to sell 200 of the chain's 840 high street stores and use the money from the sale of the leases to give the remaining sites a more upmarket image. Mr. Naghshineh, the report relates, is convinced Woolworths can survive without the Hilco deal. "Woolworths has a strong balance sheet and its retail division enjoys a unique place on the high street, with one of the best- loved and recognized brands," Mr. Naghshineh was quoted by the report saying. However, the report discloses a source close to the company cast doubt on Mr. Nagshineh's chances of success, asserting "The board would not be in these talks with Hilco and the banks if they felt there was something they could just do themselves." Woolworths, the report recounts, fell by a further 6.29 per cent on Monday to 1.34p, suggesting that the market believes there is little hope for Mr. Naghshineh's plan unless he can win over the lenders. Woolworths' lenders, the report notes, must reach agreement on any deal with either Mr. Naghshineh or Hilco. Hilco is believed to want a deal today, the report adds. Woolworths is valued at GBP18 million - 95 per cent less than its GBP385 million debt burden, the report states. The report meanwhile adds Woolworths remain in rescue talks with its lending syndicate. Citing the Daily Telegraph, the TCR-Europe reported on Nov. 24, 2008, that Woolworths admitted Wednesday last week that it was in talks with restructuring specialist Hilco about the possible sale of its 800-store retail chain for a nominal GBP1. The report said Hilco and the Woolworths board are close to finalizing the details of the deal in which Hilco would take on about GBP250 million worth of Woolworths' debt alongside its stores. The deal was aimed at securing jobs and protecting shareholders' investment in the group's profitable DVD publisher 2entertain, and EUK, a specialist distributor, the report disclosed. Woolworths, the report noted, must complete the disposal of the retail chain before Christmas to avoid the risk of being pushed into administration by its syndicate of lenders, led by Bank of Ireland subsidiary Burdale Financial and GMAC Commercial. Headquartered in London, England, Woolworths Group plc -- http://www.woolworths.co.uk/-- is principally a UK retailer focused on the home, family and entertainment. WOOLWORTHS GROUP: Hilco Sweetens GBP1 Offer for Retail Unit ----------------------------------------------------------- Helen Power at The Times reports that Hilco has sweetened the terms of its GBP1 offer for Woolworths' retail division. Hilco, the report relates, has offered to assume an additional GBP35 million of the group's debt. Under the new deal, Hilco is to take on up to GBP300 million of the group's debts in return for the the group's retail business, while EUK and 2Entertain, the publishing and distribution businesses, would stay solvent, retaining about GBP85 million of debt and the group's entire pension deficit of about GBP100 million, the report discloses. According to the report, Hilco is also likely to put the retail unit through a prepackaged administration to enable it to close its worst-performing stores as quickly as possible. Woolworths' lenders have yet to approve the new offer, the report notes. It is understood that Deloitte will step in if sale talks fail and the lenders are forced to put the retailer into administration in December, by which time the retailer has to agree a new financing package with its banks, the report states. Meanwhile, rescue talks between the retailer, its bank and Hilco continue, the report adds. Headquartered in London, England, Woolworths Group plc -- http://www.woolworths.co.uk/-- is principally a UK retailer focused on the home, family and entertainment. * Moody's Takes Rating Actions on EUR1.02 Billion CDO Tranches -------------------------------------------------------------- Moody's Investors Service has taken rating actions on approximately EUR1.02 billion of CDO tranches. These rating actions are a response to credit deterioration in the underlying portfolios, due in a significant proportion, to expectations of increased losses in the underlying RMBS and ABS CDO assets as well as corporate name defaults and general corporate deterioration. The transactions, managed by KBC Financial Products, all have underlying portfolios which consist of corporate CDOs, corporates, US RMBS, CMBS, and CDO of ABS among other assets. Each of the CDOs are similar in structure and comprise of between 13% - 20% ABS assets, primarily of the 2004, 2005 and 2006 vintages. Moody's announced on Sept. 18, 2008 that it is revising its expected loss assumptions of subprime and prime RMBS, specifically of the second half 2005 -- first half 2007 vintages. Moody's stated that for purposes of monitoring its ratings of ABS CDOs with exposure to second half 2005 -- first half 2007 subprime RMBS, it will rely on certain projections of the lifetime average cumulative losses for vintages of RMBS set forth in a recent Moody's Special Report. Moody's also announced in a press release on Nov. 17, 2008, that it is revising its expectations of lifetime losses on pools backing US Alt-A residential mortgage-backed securities issued in 2006 and 2007. Moody's explained that it will utilise these revised loss projections when monitoring ABS CDO ratings. All three transactions have exposure to Lehman Brothers Holdings, Inc, Washington Mutual, Inc. and the three largest Icelandic banks, namely Kaupthing bank hf, Landsbanki Islands hf and Glitnir banki hf. In addition, Clifton Street also has exposure to Freddie Mac and Fannie Mae. The rating actions are: Clifton Street Finance Limited: (1) EUR53,250,000 Class A-1 Floating Rate Credit Linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (2) EUR48,750,000 Class A-2 Floating Rate Credit Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (3) EUR37,500,000 Class B Floating Rate Credit-Linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (4) EUR32,000,000 Class C Floating Rate Credit-Linked Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (5) EUR30,000,000 Class D Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (6) EUR17,500,000 Class E Floating Rate Credit-Linked Notes, -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (7) EUR15,000,000 Class F Floating Rate Credit-Linked Notes -- Current Rating: Ca -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (8) EUR15,000,000 Class G Floating Rate Credit-Linked Notes -- Current Rating: C -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (9) EUR12,000,000 Class H Floating Rate Credit-Linked Notes -- Current Rating: C -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 Oxford Street Finance Limited: (1) EUR87,000,000 Class A1 Floating Rate Credit-Linked Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Action Date: Oct. 28, 2005 (2) EUR80,000,000 Class A2 Floating Rate Credit-Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Action Date: 29 May 2008 (3) EUR64,000,000 Class B Floating Rate Credit-Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (4) EUR43,000,000 Class C Floating Rate Credit-Linked Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (5) EUR33,000,000 Class D Floating Rate Credit-Linked Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (6) EUR28,000,000 Class E Floating Rate Credit-Linked Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (7) EUR17,000,000 Class F Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (8) EUR16,000,000 Class G Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (9) EUR14,000,000 Class H Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 Sydney Street Finance Limited: (1) EUR70,000,000 Class A-1 Floating Rate Credit-Linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Action Date: Jan. 18, 2008 (2) EUR66,700,000 Class A-2 Floating Rate Credit-Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (3) EUR60,000,000 Class B Floating Rate Credit-Linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (4) EUR46,700,000 Class C Floating Rate Credit-Linked Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (5) EUR44,000,000 Class D Floating Rate Credit-Linked Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (6) EUR26,700,000 Class E Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (7) EUR21,350,000 Class F Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (8) EUR21,350,000 Class G Floating Rate Credit-Linked Notes, -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 (9) EUR20,000,000 Class H Floating Rate Credit-Linked Notes -- Current Rating: C -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Action Date: June 2, 2008 ********* 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. Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, 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 * * *