/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090119.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 Monday, January 19, 2009, Vol. 10, No. 12 Headlines A U S T R I A ALPHA OMEGA: Claims Registration Period Ends February 3 BESCHRIFTUNG UND KOPIE: Claims Registration Period Ends Jan. 30 CRESCENDO MUSIC: Claims Registration Period Ends January 29 FIVEGATE AUSTRIA: Claims Registration Period Ends Jan. 28 GAP-SOLAR LLC: Claims Registration Period Ends January 27 LEOPOLD WINDSBERGER: Claims Registration Period Ends January 29 PROBAU LLC: Claims Registration Period Ends January 29 SST LLC: Claims Registration Period Ends February 3 B U L G A R I A * Moody's Changes Outlook on Bulgarian Banking System to Negative I R E L A N D ANGLO IRISH: On the Brink of Nationalization ANGLO IRISH: Fitch Cuts Individual Rating to 'D/E' from 'B' K A Z A K H S T A N ASIA INVEST: Proof of Claim Deadline Slated for February 20 AMAN SHUREN: Creditors Must File Claims by February 24 BAUER & K: Claims Filing Period Ends February 20 ISKER HOLDING: Creditors' Proofs of Claim Due on February 20 JURAS-DD LLP: Claims Registration Period Ends February 20 MARKET-NOVOSEL LLP: Proof of Claim Deadline Slated for Feb. 24 RAT-LTD LLP: Creditors Must File Proofs of Claim by February 20 SARMAT-2006 LLP: Claims Filing Period Ends February 20 TECHNIKA CONSTRUCTION: Creditors' Claims Due on February 24 TRISTAN OIL: Moody's Reviews 'B2 Rating for Possible Downgrade K Y R G Y Z S T A N RESOURSE STROY: Creditors Must File Claims by February 26 I T A L Y BANCA POPOLARE: Fitch Puts 'D/E' Individual Rtng on Watch Negative N E T H E R L A N D S FAXTOR ABS: Moody's Corrects on December 22 Rating Actions SCEPTRE CAPITAL: S&P Cuts US$50MM Notes to 'CC' From 'CCC-' S W I T Z E R L A N D AD USUM: Creditors Must File Proofs of Claim by February 6 CAFE ALEXANDER: Deadline to File Proofs of Claim Set Feb. 1 CSW 51 LLC: Creditors Have Until January 31 to File Claims GENERAL MOTORS: Bank Loan Sells at Almost 50% Discount GENERAL MOTORS: Bondholders Form Committee to Negotiate Debt Swap GENERAL MOTORS: Cuts U.S. Auto-Industry Sales Forecast to 10.5MM GENERAL MOTORS: Posts All-Time Sales Record in LatAm, Africa & ME GENERAL MOTORS: Says It Is on Track on Meeting Viability Plan GOTTHARD IMMO-FINANZ: Proofs of Claim Filing Deadline is Jan. 31 INTEC KOHLER: Creditors' Proofs of Claim Due by Jan. 31 POLORENA LLC: February 1 Set as Deadline to File Claims SPORTBAHNEN ERNER: Creditors Must File Claims by January 30 TECNO GRAF: Deadline to File Proofs of Claim Set January 31 U K R A I N E BELAYA TSERKOV: Creditors Must File Claims by January 21 GELICON-PLUS LLC: Creditors Must File Claims by January 21 INVESTMENTS SVI: Creditors Must File Claims by January 21 PRIDNEPROVSKY METALLURGICAL: Claims Registration Ends Jan. 21 SALCOM-2007 LLC: Creditors Must File Claims by Jan. 21 SLOBOZHANSCHINA LLC: Creditors Must File Claims by Jan. 21 TRADING-INVESTMENT GROUP: Creditors Must File Claims by Jan. 21 U N I T E D K I N G D O M CAPRICORN TIMBER: Appoints Administrators from Tenon Recovery CORSAIR NO 4: Moody's Junks Rating on US$20 Mil. Notes from 'A1' INOV8 TECHNOLOGIES: Placed Into Administration by Parent ITV PLC: OFT Consults on Contracts Rights Renewal Undertakings ITV PLC: Fitch Gives 'BB+' Long-Term Issuer Default Rating MSPA REALISATIONS: Taps Joint Administrators from Baker Tilly NOR-SCREEN LTD: Appoints Joint Administrators from Deloitte NORTEL NETWORKS: Enters Administration; Ernst & Young Appointed PI DISTRIBUTION: Names Joint Administrators from KPMG RD PLASTICS: Taps Joint Administrators from KPMG SWB CYMRU: Appoints Joint Administrators from Grant Thornton T. HARDING SON: Calls In Joint Administrators from PKF VICTORIA FUNDING: Moody's Downgrades Rating on Class E to 'B1' * UK: Govt Unveils Support Package for Small and Medium Businesses * UK: KPMG Says Demands for Cash to Pension Schemes Looming * UK: Roland Berger Says 33% Unused Biz Credit Lines Withdrawn * UK: KPMG Says Retail Sales Values Fell 3.3% in December 2008 X X X X X X X X * KPMG Says 2009 a Tough Year for General Insurers * EUROPE: ECB Cuts Rate on Main Refinancing Operations to 2% * BOND PRICING: For the Week Jan. 12 to Jan. 16, 2009 ********* ============= A U S T R I A ============= ALPHA OMEGA: Claims Registration Period Ends February 3 ------------------------------------------------------- Creditors owed money by LLC Alpha Omega (FN 273545y) have until Feb. 3, 2009, to file written proofs of claim to the court- appointed estate administrator: Josef Wimmer Bahnhofstr. 59 4910 Ried im Innkreis Austria Tel: 07752 / 26872 Fax: 07752 / 26872-10 E-mail: rechtsanwalt@wimmer.or.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:05 a.m. on Feb. 11, 2009, for the examination of claims at: Land Court of Ried im Innkreis Hall 101 Ried im Innkreis Austria Headquartered in Scharding, Austria, the Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 17 S 45/08m). BESCHRIFTUNG UND KOPIE: Claims Registration Period Ends Jan. 30 --------------------------------------------------------------- Creditors owed money by Beschriftung und Kopie Limited (28 S 164/08h) have until Jan. 30, 2009, to file written proofs of claim to the court-appointed estate administrator: Andrea Eisner Weyrgasse 8/7 1030 Wien Austria Tel: 712 04 77, Fax: 712 04 77 12 E-mail: office@ra-eisner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on Feb. 13, 2009, for the examination of claims at: Trade Court of Vienna Room 1607 Vienna Austria The Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 28 S 164/08h). CRESCENDO MUSIC: Claims Registration Period Ends January 29 ----------------------------------------------------------- Creditors owed money by LLC Crescendo Music (FN 279424v) have until Jan. 29, 2009, to file written proofs of claim to the court- appointed estate administrator: Nikolaus Vogt Zeltgasse 3/13 1080 Wien Austria Tel: 01/402 57 01 33 Fax: 01/402 57 01 57 E-mail: nikolaus.vogt@riess.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 11, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Korneuburg Austria Headquartered in Schwechat, Austria, the Debtor declared bankruptcy on Dec. 5, 2008, (Bankr. Case No. 36 S 129/08z). FIVEGATE AUSTRIA: Claims Registration Period Ends Jan. 28 --------------------------------------------------------- Creditors owed money by LLC Fivegate Austria (FN 264233d) have until Jan. 28, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Martina Simlinger-Haas Reisnerstrasse 31 1030 Wien Austria Tel: 713 99 46 Fax: 713 99 46-22 E-mail: ra.reisnerstr@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 11, 2009, for the examination of claims at: Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 4 S 156/08f). GAP-SOLAR LLC: Claims Registration Period Ends January 27 --------------------------------------------------------- Creditors owed money by LLC gap-solar (FN 222162i) have until Jan. 27, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Elisabeth Achatz-Kandut Schillerstrasse 12 4020 Linz Austria Tel: 65 69 69 Fax: 65 69 69 60 E-mail: e.achatz@hep.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 10, 2009, for the examination of claims at: Land Court of Linz Hall 522 Linz Austria The Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 17 S 60/08k). LEOPOLD WINDSBERGER: Claims Registration Period Ends January 29 --------------------------------------------------------------- Creditors owed money by LLC Leopold Windsberger (FN 58166p) have until Jan. 29, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stefan Langer Oelzeltgasse 4 1030 Wien Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 12, 2009, for the examination of claims at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 4, 2008, (Bankr. Case No. 5 S 131/08m). PROBAU LLC: Claims Registration Period Ends January 29 ------------------------------------------------------ Creditors owed money by LLC Probau (FN 263152p) have until Jan. 29, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Erwin Senoner Alser Strasse 21 1080 Wien Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on Feb. 12, 2009, for the examination of claims at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 4, 2008, (Bankr. Case No. 5 S 137/08v). SST LLC: Claims Registration Period Ends February 3 --------------------------------------------------- Creditors owed money by LLC SST (FN 242625b) have until Feb. 3, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Heinz Kassmannhuber Stelzhamerstrasse 11 4400 Steyr Austria Tel: 07252/50 300 Fax: DW 50 E-mail: office@sks-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:15 p.m. on Feb. 17, 2009, for the examination of claims at: Land Court of Steyr Hall 7 2nd. Floor Steyr Austria Headquartered in Weyer, Austria, the Debtor declared bankruptcy on Feb. 5, 2008, (Bankr. Case No. 14 S 62/08b). =============== B U L G A R I A =============== * Moody's Changes Outlook on Bulgarian Banking System to Negative ----------------------------------------------------------------- Moody's Investors Service has changed the credit outlook for Bulgaria's banking system to negative from stable. This outlook expresses Moody's expectations for the fundamental credit conditions in the Bulgarian banking system over the next 12 to 18 months. Moody's has also changed to negative from stable the outlook on the Bank Financial Strength Ratings and long-term local currency deposit ratings of these two Bulgarian banks: DSK Bank PLC and Raiffeisenbank EAD. Additionally, the outlook on all ratings of First Investment Bank and MKB Unionbank has been changed to negative from stable. The outlook on all ratings of International Asset Bank has also been changed to stable from positive. "The change in the credit outlook on Bulgaria's banking system and the outlook on the ratings of individual banks, reflects the weakening operating environment in Bulgaria and expectations that it will have a severe impact on the banks' financial fundamentals, mainly profitability and asset quality," says Elena Panayiotou, a Moody's Analyst, and lead analyst for Bulgarian banks. Moody's expects the domestic economic growth and activity to slow down significantly in the short-to-medium-term, mostly due to anticipated lower levels of foreign direct investment in the country -- mainly in the construction and the real estate sectors -- a reflection of the global financial conditions which affects investor behavior. "Moreover, the performance of the export industry and the tourism sectors is expected to deteriorate further, while private consumption is also likely to decline. Subsequently, such weakening economic conditions in Bulgaria are likely to have an impact on the growth prospects and the financial performance of banks operating in the country," adds Ms Panayiotou. Furthermore, Moody's notes that the financial difficulties faced by the foreign parents of Bulgarian banks in their home countries -- mainly operating in Western European markets -- is expected to impact the level of funds channeled from the parent banks to their Bulgarian subsidiaries but also elevate the costs of these funds. Moreover, fierce competition for customer deposits in Bulgaria is likely to continue to put further pressure on the banks' funding costs, their interest rate margins and hence their profitability levels. The rating agency notes that the rapid credit expansion that has been taking place in Bulgaria over the recent years, together with the rising levels of consumer indebtedness in the country, has raised concerns about the future performance of the banks' credit portfolios once loans start to season and go through an economic cycle. As Bulgaria's economic environment is expected to weaken and unemployment levels to increase further, Moody's believes that the banks' asset quality metrics will deteriorate, exerting a downward pressure on the banks' earnings, capital cushion and therefore their ratings. Moody's will continue to closely monitor the ongoing economic crisis and, depending on the severity and longevity of the crisis and on the degree of potential problems in troubled sectors, may downgrade ratings of those Bulgarian banks that exhibit weakened financial strength, particularly in terms of asset quality and profitability. The change in outlook to negative from stable applies to these issuers and ratings: DSK Bank AD - D+ BFSR - Baa1 long-term local currency deposit rating Raiffeisenbank (Bulgaria) EAD - D+ BFSR - Baa1 long-term local currency deposit rating First Investment Bank AD - D BFSR - Ba1 long-term local and foreign currency deposit ratings - Ba1 long-term senior unsecured debt rating - Ba2 long-term subordinated debt rating MKB Unionbank AD - D- BFSR - Ba1 long-term local and foreign currency deposit ratings The change in outlook to stable from positive applies to this issuer and ratings: International Asset Bank AD - E+ BFSR - B1 long-term local and foreign currency deposit ratings Moody's previous rating action on DSK Bank and Raiffeisenbank (Bulgaria) was on September 30, 2008, when it changed the outlook on the short-term and long-term foreign currency deposit ratings of Baa3/Prime-3 to stable from positive, in line with a similar change in Bulgaria's ceiling for such instruments. Moody's last rating action on First Investment Bank AD (Bulgaria) was on September 16, 2008 when the agency confirmed the issuer's ratings which had been placed on review for possible downgrade, following the short-lived run on customer deposits experienced by the bank during the second week of May that was prompted by rumours about the bank. Moody's previous rating action on International Asset Bank was on April 24, 2007, when it placed a positive outlook on all the bank's ratings. Moody's previous rating action on MKB Unionbank was on July 31, 2007, when it first assigned ratings to the bank. No further rating action has been taken on this institution since then. At the end of September 2008, DSK Bank had total assets of BGN8.766 billion (EUR4.482 billion); Raiffeisenbank (Bulgaria) had total assets of BGN7.160 billion (EUR3.661 billion); First Investment Bank had total assets of BGN 4.229 billion (EUR2.162 billion); MKB Unionbank had total assets of BGN1.410 billion (EUR721 million); and International Asset Bank had total assets of BGN555 million (EUR284 million). All banks are headquartered in Sofia, Bulgaria. ============= I R E L A N D ============= ANGLO IRISH: On the Brink of Nationalization -------------------------------------------- BBC News reports that the Irish government is set to nationalize Anglo Irish Bank. According to the report, the government said that while it planned on injecting EUR1.5 billion (GBP1.4 billion) into the bank, weak funding and damage to its reputation prompted a change of tack. The government however notes all employees would stay with the bank and shareholders would be protected, the report relates. The bank's board meanwhile said it would work with the government to ensure its long-term commercial viability, the report adds. "I would again stress that this government decision safeguards the interest of the depositors of Anglo, and the stability of the economy, given the significance of Anglo in this regard, as already recognized by the European Commission," Irish Finance Minister Brian Lenihan was quoted by the report as saying. "The bank will continue to operate as normal and depositors and creditors should continue to transact as normal." Anglo Irish, the report discloses, has about EUR100 billion on its books. Reputational Damage The report recounts the bank's chairman, Sean Fitzpatrick, resigned in December after a EUR87 million loan controversy, which according to the government caused "serious reputational damage to the bank at a time when overall market sentiment towards it was negative". Mr. Fitzpatrick, the report recalls, admitted he had transferred millions of euros out of the Dublin-based bank's accounts. Recapitalization As reported in the TCR-Europe on Dec. 29, 2008, following government decisions of November 28 and December 14, the Minister for Finance on December 21 announced specific decisions in relation to three major financial institutions. The Taoiseach said: "In relation to Anglo Irish Bank, the Minister for Finance announces an initial investment of EUR1.5 billion of core tier 1 capital to assist in restructuring the bank's capital. The Government will continue to reinforce the position of Anglo Irish Bank and will make further capital available if required so that it remains a sound and viable institution. The investment will be in the form of EUR1.5 billion of perpetual preference shares with a fixed annual dividend of 10%. The preference shares carry 75% of the voting rights of Anglo Irish Bank. The investment is subject to the approval of the ordinary shareholders at a general meeting which will be convened as soon as possible. On the basis of positive contact with the European Commission, the Minister said he was confident that the Anglo proposal will meet with EU State Aid requirements when formally notified in due course." Writedowns On Jan. 13, 2009, the TCR-Europe, citing the Sunday Business Post Online, reported that according to new analysis from stock broking firm NCB, Anglo Irish Bank could be forced to write down the value of its commercial property book by up to EUR450 million as a result of a recent High Court examinership case. The case involved Birchport, the company behind the Ocean bar in Dublin. In the case, the High Court approved the writing down of a secured asset during the examinership process, the first time that a secured asset had been reduced in this way. About Anglo Irish Bank Headquartered in Dublin, Ireland, Anglo Irish Bank Corporation plc -- http://www.angloirishbank.ie/-- operates in three core areas: Business Lending, Treasury and Wealth Management. ANGLO IRISH: Fitch Cuts Individual Rating to 'D/E' from 'B' ----------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer Default Ratings and Individual Ratings of Allied Irish Banks, Anglo Irish Bank Corporation, Bank of Ireland and Irish Nationwide Building Society and the Individual rating of Irish Life & Permanent. The agency has placed EBS Building Society's (EBS) Long-term IDR of 'A-' (A minus) and Individual rating of 'B/C' on Rating Watch Negative. Fitch has also upgraded the Support ratings and revised upwards the Support Rating Floors for a number of Irish credit institutions. The downgrades reflect the deteriorating economic environment, an abrupt contraction in forecasts for Irish economic growth in 2009, rising unemployment and a worsening outlook for commercial property. Fitch considers that these changes are likely to lead to weaker revenue generation, sharp rises in impaired loans and steep falls in operating profitability for the Irish banks. "These rating actions incorporate Fitch's expectation of significantly weaker earnings by the banks and poorer asset quality," said Matthew Taylor, Senior Director in Fitch's Financial Institutions group. On a positive note, these institutions all have strong customer franchises and attentively manage expenses, which may offer some protection against declining revenues and larger loan impairment charges. In recent years, these institutions have reported notable asset growth and rising profitability as they benefited from robust economic growth. In addition, the Irish government has guaranteed all retail, commercial, institutional and interbank deposits until end- September 2010. In upgrading the Support Ratings and revising upwards the Support Rating Floors, Fitch has taken note of the commitment of the Irish government to guarantee the covered liabilities of seven Irish credit institutions. It also notes the commitment by the Irish government to subscribe to preference shares in AIB, Anglo and BoI and its indication of the availability of additional capital to support further capital issuance by these institutions. In view of these elements, and the government's acquisition of 75% voting rights in Anglo, Fitch has upgraded Anglo's Support Rating to '1' from '3' and revised upwards its Support Rating Floor to 'A-' (A minus) from 'BB+'. The Support Rating Floors at AIB and BoI have been revised upwards to 'A' from 'A-' and the Support Ratings of '1' have been affirmed. The agency has also upgraded the Support Ratings of EBS, ILP and INBS to '2' from '3'. The Support Rating Floors have been revised upwards to 'BBB-' at EBS and INBS from 'BB+' and 'BB' respectively. Having seen the extent of the commitment from the Irish government to support its banks, Fitch considers that this support should continue to be available for the period covered by the Long-term IDR. AIB is active in Ireland, the UK and Poland and holds a non- controlling stake in the American M&T Bank Corporation, which diversifies earnings and risks. However, the bank has sizable investment and development commercial mortgage portfolios and Fitch is concerned that the development book in particular represents a significant risk. Combined with Fitch's expectations of a tough operating environment leading to falling revenues and weighty loan impairment charges, the agency considers that the 'C' Individual Rating definition of 'an adequate bank' appropriately characterizes the bank. More positively, AIB has large market shares in Ireland in retail funding, business loans and residential mortgages, which should continue positively to underpin the bank's performance and its receipt of EUR2bn government subscribed preference shares help to strengthen the bank. Fitch considers that Anglo's specialization in lending supported by commercial real estate is especially vulnerable to the weakening economy and commercial property markets. In addition to its investment portfolio, the bank has significant exposure to riskier development loans. In this context of increasing company defaults and falling commercial property values, Fitch expects the bank to report weaker revenues and large loan impairment charges and considers that the scale of the impaired loan charges could intensify the vulnerability of the bank to economic developments. In addition, the agency considers that the sustainability of the bank's business model may be in question and that the bank may need to review its positioning to improve its otherwise weak prospects. The presence of EUR1.5bn government preference shares strengthens the bank's capital position. Low risk residential mortgages make up about half of BoI's loan book and should help protect the bank from some of the difficulties presented by the economic downturn. However, the bank is also exposed to commercial real estate in its investment and development property lending and Fitch considers that these portfolios are still sufficiently large to generate loan impairment charges that may severely dent operating profit. The bank has a strong franchise also in retail funding and business loans in Ireland and is active in the UK market. The bank's capital position is strengthened by EUR2 billion of preference shares subscribed by the government. In the light of these rating actions taken on Irish credit institutions, Fitch is evaluating the Long-term IDR and Individual ratings of EBS. The downgrade of ILP's Individual Rating to 'B/C' from 'B' reflects Fitch's expectations of smaller revenues and weaker asset quality in the bank as a result of the contraction in economic growth and rising unemployment in Ireland. The bank's buy-to-let mortgage portfolio in the UK may also be susceptible to losses. On the other hand, ILP benefits from the diversification provided by its insurance operations. Fitch expects a decline in insurance revenues, but considers that the performance of the overall organization may be less influenced by the economic downturn than its Irish peers. INBS has developed a specialization in commercial property mortgages, which make up most of its loan book. Within this specialization, there are some loan concentrations and a portion of loans with high loan to value ratios, which Fitch considers to represent a greater risk. With declining property values and an expected increase in company defaults, Fitch expects INBS to record smaller revenues and large loan impairment charges. The agency considers that the scale of the impaired loan charges could intensify the vulnerability of the society to economic developments. The society is taking action to reduce its loan exposures and Fitch views positively the appointment of additional Board Directors. Fitch has affirmed at 'F1+' the Short-term IDR rating of AIB, Anglo Irish, BoI, EBS, and INBS in view of the existence of an Irish government guarantee for senior and lower Tier II subordinated debt which matures before end-September 2010. The agency has also affirmed at 'AAA' the senior and lower Tier II debt issues with original terms longer than one year which mature before September 29, 2010 and which are included in the Irish government's credit institutions financial support scheme. The ratings of AIB, Anglo, BoI, EBS, ILP and INBS are: Allied Irish Banks -- Long-term IDR downgraded to 'A' from 'AA-' ('AA minus), off RWN; Stable Outlook assigned -- Senior debt downgraded to 'A' from 'AA-' ('AA minus), off RWN -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'C' from 'B', off RWN -- Support rating affirmed at '1' -- Support Rating Floor revised upwards to 'A' from A- (A minus) -- Subordinated debt downgraded to 'A-' (A minus) from 'A+'; off RWN -- Preference shares downgraded to 'BBB' from 'A+'; remain on RWN AIB Bank (CI) Limited -- Long-term IDR downgraded to 'A' from 'AA-' (AA minus), off RWN; Stable Outlook assigned -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'C' from 'B'; off RWN -- Support rating affirmed at '1' AIB Group (UK) plc -- Long-term IDR downgraded to 'A' from 'AA-' (AA minus); off RWN; Stable Outlook assigned -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'C' from 'B'; off RWN -- Support rating affirmed at '1' Anglo Irish Bank Corporation -- Long-term IDR downgraded to 'A-' (A minus), from 'A+'; off RWN; Stable Outlook assigned -- Senior debt downgraded to 'A-' from 'A+'; off RWN -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'D/E' from 'B'; off RWN -- Support rating upgraded to '1' from '3' -- Support Rating Floor revised upwards to 'A-' (A minus) from 'BB+' -- Subordinated debt downgraded to 'BBB+' from 'A'; off RWN -- Preference shares downgraded to 'BBB-' (BBB minus) from 'A'; remain on RWN Bank of Ireland -- Long-term IDR downgraded to 'A' from 'AA-' (AA minus); off RWN; Stable Outlook assigned -- Senior debt downgraded to 'A' from 'AA-' ('AA minus), off RWN -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'C' from 'B'; off RWN -- Support rating affirmed at '1' -- Support Rating Floor revised upwards to 'A' from 'A-' (A minus) -- Subordinated debt downgraded to 'A-' (A minus) from 'A+'; off RWN -- Preference shares downgraded to 'BBB' from 'A+'; remain on RWN EBS Building Society -- Long-term IDR of 'A-' (A minus) placed on RWN -- Short-term IDR affirmed at 'F1+' -- Individual rating of 'B/C' placed on RWN -- Support Rating upgraded to '2' from '3' -- Support Rating Floor revised upwards to 'BBB-' (BBB minus) from 'BB+' -- Senior debt of EBS at 'A' placed on RWN -- Subordinated debt and permanent interest-bearing shares at 'BBB+' placed on RWN EBS Mortgage Finance -- Long-term IDR of 'A-' (A minus) placed on RWN -- Short-term IDR affirmed at 'F1+' -- Support rating affirmed at '1' Irish Life & Permanent -- Individual rating downgraded to 'B/C', from 'B'; off RWN -- Support rating upgraded to '2' from '3' Irish Nationwide Building Society -- Long-term IDR downgraded to 'BBB-' (BBB minus) from 'BBB+'; off RWN; Stable Outlook assigned -- Senior debt downgraded to 'BBB-' (BBB minus) from 'BBB+'; off RWN -- Short-term IDR affirmed at 'F1+' -- Individual rating downgraded to 'D/E' from 'C'; off RWN -- Support rating upgraded to '2' from '3' -- Support Rating Floor revised upwards to 'BBB-' (BBB minus) from 'BB' -- Subordinated debt downgraded to 'BB+' from 'BBB' RWN; off RWN In the light of the rating actions, Fitch has reviewed the credit institutions' covered bond programs. Following the downgrade or placing on RWN of the Long-term IDRs of the related covered bond issuers or their parent bank, Fitch affirms the 'AAA' ratings for these covered bonds: The residential mortgage covered securities issued by AIB Mortgage Bank. The ratings continue to be based on probability of default. The UK commercial mortgage contractual covered bonds issued by Anglo, which were formerly based solely on probability of default and are now assigned based on a 'AA+' probability of default rating with one notch credit for high recoveries leading to the final 'AAA' rating. Anglo is the swap counterparty for the program. Its rating is now below the 'A' rating referred to in the program documentation, which provides for remedial action to be taken within 30 days of such a downgrade. The UK residential mortgage contractual covered bonds issued by BoI, which were formerly assigned based solely on probability of default and are now assigned based on a 'AA+' probability of default rating with one notch credit for high recoveries leading to the final 'AAA' rating on the covered bonds. The residential MCS issued by EBS Mortgage Finance, which continue to be rated 'AA+' based on probability of default with one notch credit for high recoveries leading to the final 'AAA' rating. =================== K A Z A K H S T A N =================== ASIA INVEST: Proof of Claim Deadline Slated for February 20 ----------------------------------------------------------- LLP Asia Invest Consulting has declared insolvency. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: LLP Asia Invest Consulting Deribas Str. 19 140000 Pavlodar Kazakhstan AMAN SHUREN: Creditors Must File Claims by February 24 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aman Shuren insolvent. Creditors have until Feb. 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 20-31-32 BAUER & K: Claims Filing Period Ends February 20 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Bauer & K insolvent. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-76 ISKER HOLDING: Creditors' Proofs of Claim Due on February 20 ------------------------------------------------------------ LLP Isker Holding has declared insolvency. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: LLP Isker Holding Staraya krepost Beskaragaisky East Kazakhstan Kazakhstan JURAS-DD LLP: Claims Registration Period Ends February 20 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Juras-DD insolvent. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan MARKET-NOVOSEL LLP: Proof of Claim Deadline Slated for Feb. 24 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Stroy Market-Novosel insolvent. Creditors have until Feb. 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 20-31-32 RAT-LTD LLP: Creditors Must File Proofs of Claim by February 20 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Rat-Ltd. insolvent. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan SARMAT-2006 LLP: Claims Filing Period Ends February 20 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Sarmat-2006 insolvent. Creditors have until Feb. 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan TECHNIKA CONSTRUCTION: Creditors' Claims Due on February 24 ----------------------------------------------------------- The Tax Committee of Almaty has declared LLP Rem Stroy Technika Construction insolvent. Creditors have until Feb. 24, 2009, to submit written proofs of claim to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 TRISTAN OIL: Moody's Reviews 'B2 Rating for Possible Downgrade -------------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the B2 corporate family rating of Tristan Oil Ltd and B2 rating of its US$300 million and US$120 million Senior Secured Notes maturing 2012. The rating action follow Tristan's announcement that on December 18, 2008 the Ministry of Energy and Mineral Resources of Kazakhstan informed the company that it had canceled its previously issued waiver of the MEMR's pre-emptive rights in connection with the transfer of ownership of its prime subsidiary, Tolkynneftegaz in 2003 when the current shareholders acquired TNG from an affiliated entity. The waiver was canceled due to the insufficiency of information submitted at that time by the company. Moody's understands that Tristan intends to submit all the required documentation to the MEMR by January 23, 2009, as requested by the authorities. Moody's understands that the company expects to obtain a formal response from the authorities on this matter by the end of January 2009. The failure of TNG to obtain a favorable resolution would result in TNG loosing the subsoil use contract with respect to the Tolkyn field and Tabyl block -- assets that contribute around 70% to the group's revenue base. Around the same time, on December 24, 2008 the Department for Fighting Economic Offenses and Corruption of the Mangistau region opened a criminal investigation with respect to Tristan's other main subsidiary Kazpolmunay. As per the company, the basis for the investigation has not been disclosed by the authorities, however KPM believes it relates to the oil pipeline built by KPM in 2004 to transport its oil from the Borankol field to the delivery point at the KazTransOil pipeline. KPM has requested that the authorities provide details regarding the basis for the investigation, and estimates that in the worst case scenario a fine would need to be paid. In Moody's view both developments are alarming. The events are particularly surprising given the length of time the company has been operating both assets and the fact that none of the issues had been brought up until recently. A potential loss of the license to the Tolkyn field, or/and a sizable fine with respect to KPM operations, would jeopardize the company's current and future ability to service its debt obligations in relation to the US$420 million Eurobond rated by Moody's, and would have a profound negative impact on the company's ratings. Moody's will be closely monitoring the developments and will update the market once there is a further clarity on the resolution of both cases. In line with the company's expectations, Moody's anticipates a formal response from authorities with respect to TGN's license to be obtained by the end of January 2009, and the size of a fine at KPM level to be estimated. Failure by Tristan to resolve both issues by the date indicated would force Moody's to take actions on the credit. Moody's previous rating action on Tristan took place on May 23, 2007, when a negative outlook was assigned to Tristan's ratings on the back of the heightened financial risk as a result of raising the additional US$120 million Eurobond. Tristan is a special purpose vehicle domiciled in the British Virgin Islands created for the sole purpose of issuing secured notes to finance a loan to two oil and gas companies, KPM and TNG, organized under the laws of Kazakhstan. The guarantors of the notes, KPM and TNG are engaged in the exploration and development of two oil and gas fields and in the production of oil, condensate and gas in the Pre Caspian basin of Western Kazakhstan. All companies directly or indirectly are owned by Mr. Stati, a Moldovan citizen, and certain members of his family. =================== K Y R G Y Z S T A N =================== RESOURSE STROY: Creditors Must File Claims by February 26 --------------------------------------------------------- LLC Construction Company Resourse Stroy has declared insolvency. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: LLC Construction Company Resourse Stroy Room 500a Kievskaya Str. 96b Bishkek Kyrgyzstan ========= I T A L Y ========= BANCA POPOLARE: Fitch Puts 'D/E' Individual Rtng on Watch Negative ------------------------------------------------------------------ Fitch Ratings has placed Italy-based Veneto Banca Holding's Long- term Issuer Default Rating of 'A-' (A minus) on Rating Watch Negative. This follows an announcement on Wednesday, January 14, 2009, that VBH and BancApulia have reached an agreement for the incorporation of VBH's fully owned subsidiary Banca Meridiana, active in Southern Italy, in BA. As a result of this transaction, VBH will own a controlling stake of 50.2% in BA. Fitch expects to resolve the RWN at the legal completion of the deal. The deal is subject to the approval of the central bank, which is expected in the second half of 2009, and of the two banks' general shareholding meetings. At the same time, the agency has affirmed VBH' Short-term IDR at 'F2', the Individual rating at 'C', the Support rating at '3' and the Support Rating Floor at 'BB'. The agency has also placed subsidiary Banca Popolare di Intra's Long-term Issuer Default Rating of 'A-' (A minus) and Support rating of '1' on RWN and affirmed its Short-term IDR 'F2' and Individual rating 'D/E'. VBH's senior and subordinated notes - rated 'A-' (A minus) and 'BBB+' respectively and issued under the bank's EMTN program - have been placed on RWN. Its EUR200 million of subordinated perpetual Tier 1 notes - rated 'BBB+' - have also been put on RWN. The acquisition will allow VBH to strengthen its presence in an area in which it is already active and is strategically coherent with the recent agreement to acquire a 27% stake in Cassa di Risparmio di Fabriano e Cupramontana to link the northern and southern Italian areas where VBH is present. However, it also increases the group's exposure to the relatively more fragile economy of southern Italy as well as increasing integration risk. BA is a small commercial bank, based in the South of Italy region of Puglia, with 52 branches and focused on retail customers. At end-June 2008, BA had equity of EUR195 million and total assets of EUR4.5 billion, representing around 10% and 22% of VBH's consolidated equity and total assets respectively. It owns 70% of a small consumer credit company, Apulia ProntoPrestito, listed on the Milan Stock Exchange. BA's main shareholder is the Chiro family which owns a 52% stake in BA through a finance company, Finanziaria Capitanata; the remainder is widely held by local entrepreneurs and individuals. VBH is a cooperative bank historically based in the Veneto region of Italy with a client base mainly composed of small and micro enterprises and private individuals. Intra is VBH's subsidiary in charge of the north-western branch network of the group. The group is complemented by product companies. VBH has also a foothold in some central and eastern European countries (Romania, Moldova, Croatia and Albania) through small, local banks. ===================== N E T H E R L A N D S ===================== FAXTOR ABS: Moody's Corrects on December 22 Rating Actions ---------------------------------------------------------- Moody's Investors Service has taken rating actions on certain tranches from Faxtor ABS 2003-1 B.V. These actions are a correction to rating actions announced December 22, 2008 where a certain payment made to the Class A-1E was not fully reflected and pari-passu tranches of Class A-2E and A-2F were incorrectly treated. The impacted tranches are: (1) Class A-2E -- Correct rating: Aa3, on review for possible downgrade -- Previous incorrect rating: Aa2, on review for possible downgrade (2) Class A-3E -- Correct rating: Baa1, on review for possible downgrade -- Previous incorrect rating: Ba1, on review for possible downgrade (3) Class A-3F -- Correct rating: Baa1, on review for possible downgrade -- Previous incorrect rating: Ba1, on review for possible downgrade (4)Class BE -- Correct rating: Ba2, on review for possible downgrade -- Previous incorrect rating: B2, on review for possible downgrade (5) Class BF -- Correct rating: Ba2, on review for possible downgrade -- Previous incorrect rating: B2, on review for possible downgrade Corrected press release follows: Moody's Investors Service announced that it has downgraded its ratings of 144 Notes issued by certain collateralized debt obligation transactions backed by structured finance securities, each of which originated in 2003 - 2004. Moody's explained that the rating actions taken are the result of the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of SF CDOs. The revisions affect the three key parameters in Moody's model for rating SF CDOs: asset correlation, default probability and recovery rate. Moody's announced the changes to these assumptions in a press release. Moody's noted that the lowered ratings remain on review for possible downgrade due to the continuing weakness in the performance of and outlook for structured finance securities that back SF CDOs. Moody's initially analyzed and continues to monitor these transactions using primarily the methodology and its supplements for ABS CDOs as described in Moody's Special Reports: -- Moody's Approach to Rating Multisector CDOs (15/09/2000) -- Moody's Approach To Rating Synthetic Resecuritizations (29/10/2003) -- Moody's Revisits its Assumptions Regarding Structured Finance Default (and Asset) Correlations for CDOs (27/06/2005) -- Moody's Modeling Approach to Rating Structured Finance Cash Flow CDO Transactions (26/09/2005) The rating actions are: Issuer: ABSolute II Synthetic CDO Limited (1) Class A -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (2) Class B -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: ABSolute III Synthetic CDO Limited (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 March 2004 (2) Class B1 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 26 March 2004 (3) Class B2 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 26 March 2004 Issuer: Alexandria Capital Plc. Series 2003-2 (1) Alexandria Class A Secured Floating Rate Credit Linked Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 24 December 2003 (2) Alexandria Class B Secured Floating Rate Credit Linked Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 24 December 2003 (3) Alexandria Class C Secured Floating Rate Credit Linked Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 24 December 2003 (4) Alexandria Class D Secured Floating Rate Credit Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 24 December 2003 Issuer: Argon Capital PLC - Series 21 (1) Series 21 EUR13,020,000 Class A+1 Limited Recourse Secured Credit-Linked Fixed Rate Notes due 2043 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 May 2003 (2) Series 21 EUR2,790,000 Class A+3 Limited Recourse Secured Credit-Linked Floating Rate Notes due 2043 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 May 2003 Issuer: Arosa Funding Limited - Series 2003-2 (1) Class A -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3 -- Prior Rating Date: 22 October 2008 (2) Class B1 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1 -- Prior Rating Date: 22 October 2008 (3) Class B2 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2003-3 (1) Class A1 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 (2) Class A2 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2003-4 (1) Series 2003-4 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2004-6 (1) Class A Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 (2) Class B Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 Issuer: Brooklands Euro Referenced Linked Notes 2004-1 Limited (1) Class A1-a Floating Rate Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 11 August 2005 (2) Class A1-b Floating Rate Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 11 August 2005 (3) Class A2 Floating Rate Notes due 2054 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 11 August 2005 Issuer: Bruckner CDO I B.V. (1) Class A-1 Secured Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (2) Class A2-1 Secured Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (3) Class B Secured Floating Rate Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 30 September 2004 (4) Class C-1 Deferrable Interest Secured Floating Rate Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 30 September 2004 (5) Class D-1 Deferrable Interest Secured Floating Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 30 September 2004 (6) Class A2-2 Secured Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (7) Class C-2 Deferrable Interest Secured Fixed Rate Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 30 September 2004 (8) Class D-2 Deferrable Interest Secured Fixed Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 30 September 2004 (9) Class Q Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 30 September 2004 (10) Class R Combination Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 30 September 2004 (11) Class S Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 30 September 2004 Issuer: Camber 4 plc (1) Class A1-A Floating Rate Notes due 2053 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 15 August 2008 Issuer: CDC Ixis Capital Markets - Credit-Linked Note linked to Chrome Funding Must 50/5 (1) EUR10,000,000 Series 1388 Fixed Rate Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Chrome Funding Ltd - Series Must 50/5 (1) Class A1-A Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (2) Class A2-A Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (3) Class B Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (4) Class C1 Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (5) Class C2 Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (6) Class D Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (7) Class A1-B -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (8) Class A2-B -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Claris Limited Series 20, 21, 22 and 23/2004 (Millesime) (1) Series 20 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 15 June 2004 (2) Series 21 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 15 June 2004 (3) Series 22 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 15 June 2004 (4) Series 23 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 15 June 2004 Issuer: Claris Limited Series 25/2004 (Millesime) (1) Series 25 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 13 July 2004 Issuer: Claris Limited Series 29/2004 (1) Series 29/2004 Tranche 1 EUR 40,000,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Cloverie Plc - Ghibli CDO I (1) Series 2004-26 Class A -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 03 November 2008 (2) Series 2004-27 Class B -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 03 November 2008 Issuer: Cloverie Plc - Rotonda CDO: Series 2004- 56, 59, 61, 63 (1) Series 2004-56 Portfolio Credit Linked Note -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Cloverie Plc - Series 2004-72, 2004-77 & 2005-04 (US Onyx) (1) EUR30,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2024 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 (2) EUR50,000,000 Class C Secured Floating Rate Series 77 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie plc - Series 64-65 (Brera) (1) Series 2004-64 US$37,500,000 Class A Brera CDO I Secured Floating Rate Portfolio Credit Linked Notes due 2030 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 15 July 2008 Issuer: Cloverie PLC: Rotonda CDO Series 2004-59 (1) Series No: 2004-59 US$60,000,000 Class A Floating Rate Portfolio Credit Linked Notes due 2009 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 01 December 2008 Issuer: Corsair (Jersey) No 3 Limited Series 7 (Alhambra) (1) Series 7 Floating ate Portfolio Credit Linked Notes due 2013 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 23 October 2008 Issuer: Credit Derivative Transaction between Mizuho International plc and Cradle Limited (1) Mizuho - Cradle - SS Swap -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 November 2004 Issuer: Deutsche Bank AG, London Branch - N-Tsar (1) Class B Swap -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 31 July 2008 Issuer: Deutsche Bank AG, London Branch - Tsar_05 (1) Class A-(1) Swap -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 (2) Class A(2) Swap - Earls Four Limited Series 899 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 (2) Class A(3) Swap -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Four Limited - Series 32 due 2013 (1) Series 32 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Four Series 60 (Tsar_05 Class A and Class A- Swap) (1) Series 60 Floating and Variable Rate Secured Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Two Limited - Series 101, 102, 103, 104 (1) Eirles Two Limited - Series 101 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 31 July 2008 Issuer: Eirles Two Limited, Series 153 and 156 (1) Series 153 US$32,000,000 Floating and Variable Rate Secured Notes due 2038 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 21 December 2004 (2) Series 156 US$8,000,000 Floating and Variable Rate Secured Notes DUE 2038 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 21 December 2004 Issuer: Eirles Two Series 71 (Tsar_05 Class A-(1) Swap) (1) Eirles Two Series 71 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: FAB CBO 2003-1 B.V. (1) Class A-1E Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (2) Class A-1F Zero Coupon Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (3) Class A-2E Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (4) Class A-2F Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (5) Class A-3E Floating Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 31 July 2003 (6) Class A-3F Fixed Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 31 July 2003 (7) Class BE Floating Rate Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 31 July 2003 (8) Class BF Fixed Rate Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 31 July 2003 (9) Class S1 Combination Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (10) Class S2 Combination Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (11) Class S3 Combination Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 Issuer: Faxtor ABS 2003-1 B.V. (1) Class A-1E Floating Rate Notes -- Current Rating: Aa1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (2) Class A-2E Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (3) Class A-2F Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (4) Class A-3E Floating Rate Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 19 May 2003 (5) Class A-3F Fixed Rate Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 19 May 2003 (6) Class BE Floating Rate Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 19 May 2003 (7) Class BF Fixed Rate Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 19 May 2003 Issuer: Faxtor ABS 2004-1 B.V. (1) Class A-1 Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 25 May 2004 (2) Class A-2 Floating Rate Note -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 25 May 2004 (3) Class A-3 Floating Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 25 May 2004 (4) Class BE Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 (5) Class BF Fixed Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 (6) Class S Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 Issuer: G Square Finance Limited (1) Class A Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Heather Finance Limited 2004-8 (CoRDS) (1) Series 2004-8 JPY1,100,000,000 Secured Credit-Linked Floating Rate Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 09 June 2008 Issuer: High Tide CDO I S.A. (1) Class A Senior Secured Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 16 June 2003 (2) Class B Senior Secured Floating Rate Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 16 June 2003 (3) Class C Senior Secured Floating Rate Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 16 June 2003 Issuer: Iliad Investments P.L.C. Series 8 (1) Class A Series 8 Secured Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 16 May 2008 (2) Class B Series 8 Secured Floating Rate Note -- Current Rating: B1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 16 May 2008 (3) Class C Series 8 Secured Floating Rate Note -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 16 May 2008 Issuer: Iona CDO I Limited (1) Class A Secured Floating Rate Credit-Linked Notes due 2049 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 12 December 2008 Issuer: Menton CDO I (Lunar Funding V plc) (1) Series 2 US$50,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (2) Series 3 US$40,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (3) Series 4 US$40,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: Merak CDO Limited - Series 2003-3 (1) Class B -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 10 December 2003 (2) Class C -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 10 December 2003 Issuer: Merak CDO Limited Series 2003-01 (1) Class B Credit-Linked Notes due 2010 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 19 September 2003 Issuer: Merak CDO Limited Series 2003-02 (1) Class C Credit-Linked Notes due 2010 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 19 September 2003 Issuer: Rhodium 1 B.V. (1) Class A -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 June 2004 (2) Class B -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 June 2004 (3) Class C -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 07 June 2004 (4) Class D -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 07 June 2004 Issuer: Ryder Square Limited - Evergreen (1) Series No: 3 EUR29,000,000 Evergreen-ABS Secured Credit Linked Notes due 2009 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 10 November 2008 (2) Series No: 4 EUR38,000,000 Evergreen-ABS Secured Credit Linked Notes due 2009 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 10 November 2008 Issuer: SAGA Investment Series Limited (1) JPY700,000,000 Class A1 Secured Fixed/Floating Rate Credit- Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (2) JPY2,300,000,000 Class A2 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (3) EUR7,500,000 Class A3 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (4) JPY4,000,000,000 Class B Secured Fixed Rate Credit-Linked Notes due 2011 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 13 May 2008 Issuer: SGA Societe Generale Acceptance N.V. Series 7040/04-09 (1) Series 7040/04-09 Tranche 1 EUR 28,500,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: SGA Societe Generale Acceptance N.V. Series 7041/04-09 (1) Series 7041/04-09 Tranche 1 EUR 5,000,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Skylark Limited Series 2004-3 (US$Saqqara) (1) US$ denominated Saqqara Class A Floating Rates Credit Linked Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 16 June 2004 Issuer: Societe Generale - Napa Valley II Synthetic CDO of ABS Swap (1) CDS providing protection on the reference portfolio for losses exceeding 0.05% up to 1.65% of the portfolio related to SGA Series 7041/04-09 Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 (2) CDS providing protection on the reference portfolio for losses up to 1.65% of the portfolio related to SGA Series 7040/04-09 Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Stanton MBS I p.l.c. (1) Class A1 Senior Secured Floating Rate Delayed Draw Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 (2) Class A1 Senior Secured Floating Rate Term Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 (3) Class A1 Senior Secured Floating Rate Revolving Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 Issuer: Tempo CDO 1 Limited (1) Class A -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 06 November 2008 (2) Class B -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 06 November 2008 Issuer: Triplas IV Limited (1) EUR17,000,000 Class A Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) EUR17,000,000 Class B Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) EUR10,300,000 Class C1 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) EUR2,000,000 Class C2 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) EUR750,000 Class D Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Triplas Series II Synthetic CDO Limited (1) Class A -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) Class B -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) Class C -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) Class D -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) Class E -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Triplas Synthetic CDO S.A. (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 09 January 2003 (2) Class B -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 09 January 2003 (3) Class C -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 09 January 2003 Issuer: Vespucci Investments Plc (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 July 2004 (2) Class B -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 July 2004 (3) Class C -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 06 July 2004 SCEPTRE CAPITAL: S&P Cuts US$50MM Notes to 'CC' From 'CCC-' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Series 2007-4 US$50 million synthetic collaterized debt obligation variable rate notes due 2012 issued by Sceptre Capital B.V. to 'CC' from 'CCC-/Watch Neg'. The rating was subsequently withdrawn. The downgrade reflects a deterioration in the credit quality of the transaction following the default of several reference names in the portfolio. The withdrawal of the rating is at the request of the issuer following a buy-back of the notes. The rating action on the affected transaction is: Rating lowered Name Rating To Rating From ---- --------- ----------- Sceptre Capital B.V. CC CCC-/Watch Neg Series 2007-4 Rating withdrawn Name Rating To Rating From ---- --------- ----------- Sceptre Capital B.V. NR CC Series 2007-4 ===================== S W I T Z E R L A N D ===================== AD USUM: Creditors Must File Proofs of Claim by February 6 ---------------------------------------------------------- Creditors owed money by LLC Ad Usum are requested to file their proofs of claim by Feb. 6, 2009, to: Christa Furrer-Muller Oberhofstrasse 13 8265 Mammern Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 27, 2008. CAFE ALEXANDER: Deadline to File Proofs of Claim Set Feb. 1 ----------------------------------------------------------- Creditors owed money by LLC Cafe Alexander are requested to file their proofs of claim by Feb. 1, 2009, to: Francesco Pologruto Wiesenweg 18b 4663 Aarburg Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 1, 2008. CSW 51 LLC: Creditors Have Until January 31 to File Claims ---------------------------------------------------------- Creditors owed money by LLC CSW 51 are requested to file their proofs of claim by Jan. 31, 2009, to: LLC S & S Occ. Truck Center Willy Sommer Industriestrasse 23 4623 Neuendorf Switzerland The company is currently undergoing liquidation in Neuendorf. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 24, 2008. GENERAL MOTORS: Bank Loan Sells at Almost 50% Discount ------------------------------------------------------ Participations in a syndicated loan under which General Motors Corp. is a borrower traded in the secondary market at 51.56 cents- on-the-dollar during the week ended January 9, 2009, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 5.78 percentage points from the previous week, the Journal relates, General Motors Corp. pays interest at 275.00 points above LIBOR. The bank loan matures on November 27, 2013. The bank loan carries Moody's B3 rating and Standard & Poor's CCC rating. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Bondholders Form Committee to Negotiate Debt Swap ----------------------------------------------------------------- Sharon Terlep at The Wall Street Journal reports that General Motors Corp. executives said on Thursday that bondholders have created a committee to negotiate the terms of a debt-for-equity swap. A Paul, Weiss, Rifkind, Wharton & Garrison LLP spokesperson said that the firm was representing GM's bondholders, WSJ relates. Paul, Weiss also represents bondholders of General Growth Properties Inc., the report states. Citing the spokesperson, WSJ says that the committee represents 10 institutions holding GM debt and that it has held its first meeting by telephone. GM must also convince individual bondholders to sign off on the debt swap, WSJ says, citing Daryl Robertson, who has represented bondholders at Hunton & Williams LLP, which isn't involved in the talks. According to WSJ, the debt swap is a requirement of the government loan. The report says that under the terms of the government's US$13.4 billion loan program, GM must: -- have a plan in place that would cut its US$27.5 billion in unsecured debt by two-thirds by Feb. 17; and -- reach a cost-cutting agreement with its union workers. WSJ relates that GM lowered on Thursday its forecast for this year's industry sales of cars and light trucks. GM, according to the report, expects global sales to drop 15% to 57.5 million vehicles in 2009, from 67.1 million cars and trucks in 2008. The report says that GM expects industry sales of 10.5 million vehicles in the U.S. this year, down 22% from 13.5 million last year. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Cuts U.S. Auto-Industry Sales Forecast to 10.5MM ---------------------------------------------------------------- In light of the ongoing uncertainty of global market conditions, General Motors said it is adopting more conservative industry volume assumptions than those presented to Congress. For liquidity and viability planning purposes, GM will assume 2009 U.S. total vehicle sales of 10.5 million units and global sales of 57.5 million units. The initial plan included a downside scenario of 10.5 million U.S. sales in 2009, with a baseline scenario of 12 million sales. GM also said it revised downwards its assessment of global industry volume assumptions for 2010-2012 for liquidity planning purposes. In its statement regarding its viability plan in Dec. 2, 2008, GM said that after it has completed the restructuring actions laid out in the plan, the company will be able to operate profitably at industry volumes between 12.5 and 13 million vehicles. It noted at that time that those assumptions were reasonably conservative for gauging liquidity needs, as the figures were substantially below the 17 million industry levels averaged over the last nine years. Bloomberg News says that the 10.5 million units projected by GM would be the lowest in 27 years, as a worsening economy crimps demand. Chrysler CEO Bob Nardelli, in an interview with Bloomberg News early this week, said that they have pegged total 2009 production by U.S to 11.1 million units. Ford Motor Chief Financial Officer Lewis Booth said Ford has lowered its prediction from a range of 12.2 million to 12.5 million, to 12 million to 12.5 million. Other firms, however, have given lower forecasts. "The market will not reach 12.2 million units this year, no way, no how," said John Wolkonowicz, an IHS Global Insight analyst. IHS, according to Bloomberg, has trimmed its 2009 sales estimate last week to between 10 million and 10.5 million. Standard & Poor's Ratings Services said it expects sales in 2009 to be 10 million units, 24% below 2008 actual sales. It notes that for the last three months of 2008, the seasonally adjusted annual rate of light-vehicle sales in the U.S. was below 11 million units. The ratings agency noted that GM's production in the first quarter of 2009 is expected to be down more than 50% year over year. S&P expects production to also be down for other customers in North America and for Europe as well in 2009 In cutting auto supplier Dana Holdings' credit rating to B from B+, Standard & Poor's credit analyst, Nancy Messer, said, "We expect revenues to be reduced by weak auto sales and production in North America, weak auto sales in Europe, and the U.S. recession, which has stalled the recovery of commercial truck sales. S&P has also made ratings cuts for other auto suppliers, including American Axle Inc., Visteon Corp. and ArvinMeritor Inc. for the same reasons. In mid-December 2008, Johnson Controls Inc. said it was cutting its projections for total auto sales to 9.3 million units in North America and 16.2 million units in Europe. JCI, which sales to Ford, GM, Chrysler and Toyota accounts to 10% of revenues in the U.S., had projected North American production of 12.3 million vehicles and European production of 21.2 million vehicles. According to data from the International Organization of Motor Vehicle Manufacturers, production of cars and commercial vehicles in the U.S. in 2007 was 10,780,729, down 4.5% from the previous year. Bloomberg has said 2008 U.S. sales of cars and light trucks have tumbled 16% through November. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Posts All-Time Sales Record in LatAm, Africa & ME ----------------------------------------------------------------- General Motors Latin America, Africa and Middle East region posted an all-time sales record in 2008, selling over 1.276 million vehicles, up 40,000 units over 2007, representing a 3.2 percent growth rate. In addition, LAAM's market share increased to 17.1 percent for the year. Maureen Kempston Darkes, GM group vice president and president of GM LAAM said, "We are pleased to post our fifth consecutive record sales year, with the Chevrolet brand continuing to lead the growth throughout the region." All-time yearly GM sales records were set in Argentina, Brazil, Chile, Ecuador, Paraguay, Peru, Uruguay, Egypt, Kenya, North Africa and Middle East markets in 2008. And, for the 2008 calendar year, market share gains were recorded in Ecuador, Paraguay, Peru, Uruguay, Egypt, Kenya, Israel, Middle East, North Africa, South Africa and Venezuela. The North African market and Egypt were GM's highest market gainers in 2008, growing 57 percent and 52 percent, respectively, both of which significantly out-paced the industry growth rate. Despite a slowdown in the fourth quarter throughout the region due to the global economic crisis, the North African market posted all-time quarterly GM sales and market share records in Q4 2008. In addition, Ecuador, Peru and Egypt set fourth quarter sales records. Chevrolet Corsa, Celta and Aveo remained as the top three sellers across the region in 2008, representing 41 percent of GM's sales volume. Chevrolet represents 90 percent of GM sales in LAAM. Brazil represents the second largest market for Chevrolet outside the U.S., with sales of 549,000 in 2008. In 2009, the Chevrolet brand will continue to play a key role as several new products, such as the Camaro, Cruze, Malibu, Traverse will be launched in the region. General Motors Latin America, Africa and Middle East Region (GM LAAM), with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 35,000 people throughout the region in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. In 2008, GM LAAM had a record year, selling over 1.27 million vehicles. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Says It Is on Track on Meeting Viability Plan ------------------------------------------------------------- General Motors Corp. on Jan. 16 provided an update on its restructuring efforts included in the viability plan submitted to the federal government last month, and announced more conservative industry volume planning assumptions to ensure the viability plan is successful even in the most challenging of markets. The updates were part of a comprehensive review of GM's global business by Rick Wagoner, chairman and CEO; Fritz Henderson, president and COO; and Ray Young, executive vice president and CFO; at the Deutsche Bank 2009 Auto Analysts Conference in Detroit. Their remarks focused on the global financial, operational and product portfolio actions GM is taking to restructure its business for greater competitiveness and long-term viability. "We are on track to accomplish the requirements of the viability plan," Mr. Wagoner stated. "We know we have a lot of work in front of us, but we are already working closely with many key stakeholders. The GM team is 100 percent dedicated to achieving the goals of our plan." In light of the ongoing uncertainty of global market conditions, GM is adopting more conservative industry volume assumptions than those presented to Congress. For liquidity and viability planning purposes, GM will assume 2009 U.S. total vehicle sales of 10.5 million units and global sales of 57.5 million units. The initial plan included a downside scenario of 10.5 million U.S. sales in 2009, with a baseline scenario of 12 million sales. GM also revised downwards its assessment of global industry volume assumptions for 2010-2012 for liquidity planning purposes. GM said that lowering the assumptions on U.S. and global industry volumes will drive tougher operational decisions that will result in a more robust viability plan, one that better positions the company for long-term growth as the auto market recovers. GM said it would continue to refine its plan in response to changing market conditions. GM's detailed Restructuring Plan for Long-Term Viability was presented to Congress on December 2, 2008, and it formed the basis for the loan agreement with the U.S. Treasury signed on December 19. An updated plan is due to the U.S. President's designee on February 17, 2009. GM and Chrysler LLC have obtained loans from the treasury in order to avert collapse. On Dec. 31, 2008, the U.S. Treasury completed a transaction with General Motors Corp., under which the Treasury will provide GM with up to a total of US$13.4 billion in a three- year loan from the Troubled Assets Relief Program. On Jan. 2, 2009, the Treasury provided a three-year US$4 billion loan to Chrysler. The Treasury has required each of the two to submit a plan that would prove the automaker's long-term viability. The loan agreement provides for acceleration of the loan if those goals under the plan, which are subject to review by a designee of the U.S. President, are not met. GM Viability Plan GM's viability, submitted in response to Congressional hearings in November, includes a detailed blueprint for a successful, sustainable General Motors. Building on a product renaissance and comprehensive restructuring that has been under way for several years, the plan calls for: * Increased production of fuel-efficient vehicles and energy- saving technologies; * Rationalization of brands, models and retail outlets; * Reduced wage and benefit costs, including further reductions in executive compensation; * Significant capital structure restructuring; * Further consolidation in manufacturing operations. The plan calls for shared sacrifice, including further reduction in the number of executives and total compensation paid to senior leadership. GM cited that the chairman and CEO Rick Wagoner will reduce his salary to US$1 per year. A full-text copy of GM's viability plan is available at: http://researcharchives.com/t/s?3815 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GOTTHARD IMMO-FINANZ: Proofs of Claim Filing Deadline is Jan. 31 ---------------------------------------------------------------- Creditors owed money by JSC Gotthard Immo-Finanz are requested to file their proofs of claim by Jan. 31, 2009, to: Wallimann Marcel LLC N & N Treuhand Bahnhofstrasse 4 6052 Hergiswil/NW Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 5, 2006. INTEC KOHLER: Creditors' Proofs of Claim Due by Jan. 31 ------------------------------------------------------- Creditors owed money by JSC Intec Kohler are requested to file their proofs of claim by Jan. 31, 2009, to: Peter Kohler Im Gostel 1 3232 Ins Switzerland The company is currently undergoing liquidation in Ins. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 27, 2008. POLORENA LLC: February 1 Set as Deadline to File Claims ------------------------------------------------------- Creditors owed money by LLC Polorena are requested to file their proofs of claim by Feb. 1, 2009, to: Francesco Pologruto Wiesenweg 18b 4663 Aarburg Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 1, 2008. SPORTBAHNEN ERNER: Creditors Must File Claims by January 30 ----------------------------------------------------------- Creditors owed money by JSC Sportbahnen Erner Galen are requested to file their proofs of claim by Jan. 30, 2009, to: JSC Schwestermann & Michel Treuhand Haus Romantica 3984 Fiesch Switzerland The company is currently undergoing liquidation in Muhlebach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 21, 2008. TECNO GRAF: Deadline to File Proofs of Claim Set January 31 ----------------------------------------------------------- Creditors owed money by JSC Tecno Graf are requested to file their proofs of claim by Jan. 31, 2009, to: Waldeggstrasse 20 2540 Grenchen Switzerland The company is currently undergoing liquidation in Grenchen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 24, 2008. ============= U K R A I N E ============= BELAYA TSERKOV: Creditors Must File Claims by January 21 -------------------------------------------------------- Creditors of OJSC Belaya Tserkov Agricultural Technics (EDRPOU 23570740) have until Jan. 21, 2009, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 3, 2008. The case is docketed as B 14/406-07/11. The Debtor can be reached at: OJSC Belaya Tserkov Agricultural Technics Lenin Str. 1-b Fursy Tserkov Kiev Ukraine GELICON-PLUS LLC: Creditors Must File Claims by January 21 ---------------------------------------------------------- Creditors of LLC Gelicon-Plus (EDRPOU 32860175) have until Jan. 21, 2009, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Arbitration Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as B 15/324-08. The Debtor can be reached at: LLC Gelicon-Plus Apt. 8 Rogalev Str. 3 49000 Dnipropetrovsk Ukraine INVESTMENTS SVI: Creditors Must File Claims by January 21 --------------------------------------------------------- Creditors of LLC Ukrainian Investments SVI (EDRPOU 34479196) have until Jan. 21, 2009, to submit proofs of claim to: Mr. S. Kitsul Liquidator Apt. 15 Leskovskaya Str. 28 02097 Kiev Ukraine Tel: 8(067)295-0803 The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 4, 2008. The case is docketed as 24/504-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Ukrainian Investments SVI Kikvidze Str. 11 01103 Kiev Ukraine PRIDNEPROVSKY METALLURGICAL: Claims Registration Ends Jan. 21 ------------------------------------------------------------- Creditors of LLC Pridneprovsky Metallurgical Alliance (EDRPOU 33164764) have until Jan. 21, 2009, to submit proofs of claim to: Mr. Eugene Galchenko Temporary Insolvency Manager: P.O.B. 6119 49125 Dnipropetrovsk Ukraine Tel: 8(056)377-83-17 8(066)986-63-64 The Arbitration Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 7, 2008. The case is docketed as B 26/251-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Pridneprovsky Metallurgical Alliance Apt. 704 Newspaper Pravda avenue, 29 49000 Dnipropetrovsk Ukraine SALCOM-2007 LLC: Creditors Must File Claims by Jan. 21 ------------------------------------------------------ Creditors of LLC Salcom-2007 (EDRPOU 35264564) have until Jan. 21, 2009, to submit proofs of claim to: Mr. S. Kitsul Liquidator Apt. 15 Leskovskaya Str. 28 02097 Kiev Ukraine Tel: 8(067)295-0803 The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 4, 2008. The case is docketed as 24/506-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Salcom-2007 Citadel Str. 6/8 01010 Kiev Ukraine SLOBOZHANSCHINA LLC: Creditors Must File Claims by Jan. 21 ---------------------------------------------------------- Creditors of LLC Slobozhanschina (EDRPOU 30714277) have until Jan. 21, 2009, to submit proofs of claim to: Mr. O. Tischenko Liquidator Apt. 33 Mironositskaya Str. 65 61002 Kharkov Ukraine The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 3, 2008. The case is docketed as B-48/110-07. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Slobozhanschina Privokzalnaya Str. 10 Slatino Dergachi 62321 Kharkov Ukraine TRADING-INVESTMENT GROUP: Creditors Must File Claims by Jan. 21 --------------------------------------------------------------- Creditors of LLC Trading-Investment Group (EDRPOU 34576600) have until Jan. 21, 2009, to submit proofs of claim to: Mr. S. Kitsul Liquidator Apt. 15 Leskovskaya Str. 28 02097 Kiev Ukraine Tel: 8(067)295-0803 The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 4, 2008. The case is docketed as 24/505-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Trading-Investment Group Kikvidze Str. 11 01103 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== CAPRICORN TIMBER: Appoints Administrators from Tenon Recovery ------------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed joint administrators of Capricorn Timber Ltd. on Dec. 23, 2008. The company can be reached through Tenon Recovery at: 1 Bede Island Road Bede Island Business Park Leicester LE2 7EA England CORSAIR NO 4: Moody's Junks Rating on US$20 Mil. Notes from 'A1' ---------------------------------------------------------------- Moody's Investors Service announced it has downgraded its ratings on one class of notes issued by Corsair (Jersey) No. 4 Ltd - Series 14. Corsair (Jersey) No. 4 Ltd - Series 14 is a self-managed single tranche synthetic CDO consisting primarily of corporate and sovereign 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 exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008; Washington Mutual Inc., which was seized by federal regulators on September 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase; Fannie Mae, which were placed into the conservatorship of the U.S. government on September 8, 2008; and two Icelandic banks, specifically Kaupthing Bank hf, and Glitnir Banki hf. Due to these credit events, subordination has been negatively impacted. The transaction also has a significant exposure to other corporate names which continue to deteriorate in the current economic environment and will weigh on the ratings of the tranches in this transaction. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (December 2008) The rating action is: Corsair (Jersey) No. 4 Ltd - Series 14: (1) Series 14 US$20,000,000 Secured Portfolio Credit-Linked Notes due 2014 -- Current Rating: Caa3 -- Prior Rating: A1 -- Prior Rating Date: 17 April 2008, downgraded to A1 from Aa2 INOV8 TECHNOLOGIES: Placed Into Administration by Parent -------------------------------------------------------- Mid-States PLC on Tuesday, January 13, 2009, provided a further update on strategic developments in its Environmental Division, and its separate and distinct Engineering Division. The Environmental Division includes the ground breaking air disinfection device, the AD. The Engineering Division houses the fuel injection testing business. As reported on December 24, 2008, the Group's recent trading has been below expectations. In particular, the Group's Engineering Division, which serves the global automotive market, has been experiencing the increasingly severe pressures in that industry. As also reported on December 24, 2008, the Board was investigating a number of alternative courses of action to limit any further losses in the Engineering Division. Regrettably, as a consequence of this investigation, Inov8 Technologies Limited, the Group subsidiary through which the Engineering Division operates, has been placed into administration. The Group has agreed to assist the administrator to try to find a suitable buyer for the Engineering Division. A newly-formed wholly-owned subsidiary of Mid-States has acquired and will be retaining ownership of certain assets utilized by the separate Environmental Division in its air disinfection business, which will continue to trade through Mid- States' other subsidiaries Inov8 Science Limited and AD Science Limited. As a result of this action, Mid-States expects to eliminate the trading losses in the Engineering Division and to make the necessary write downs in its financial statements. Except for the write down, the appointment of administrators to Inov8 Technologies does not affect Mid-States, the Group's Environmental Division, or its other trading subsidiaries which are separate legal entities to Inov8 Technologies, and continue to operate. The Board remains encouraged by the potential of the Company's ground breaking Air Disinfection technology and is continuing to explore raising additional equity from shareholders to help realize this potential. Further announcements will be made in due course. ITV PLC: OFT Consults on Contracts Rights Renewal Undertakings -------------------------------------------------------------- The OFT has reached a preliminary view to recommend to the Competition Commission that it relaxes ITV's Contract Rights Renewal (CRR) Undertakings. These were introduced following the merger of Carlton and Granada in 2003. The consultation document, published Thursday, January 15, 2009, follows the OFT's in-depth review into CRR, conducted with the assistance of Ofcom. The OFT highlights that since CRR was introduced in 2003, ITV1's market position has declined but the channel remains almost the only provider of very large commercial audiences, which are of particular value to some advertisers. The OFT provisionally concludes that the detrimental effects of the merger on the advertising market appear to have reduced but may not have been eroded completely. The OFT's consultation document explores a range of possible outcomes from, at one end of the scale, the removal of CRR in its entirety to retaining CRR largely as it is today, and various easements and modifications in between the two extremes. On the basis of the evidence collected so far, the OFT's preliminary assessment is that: * It may be appropriate to ease CRR if there is an effective remedy which addresses any remaining detriments arising from the merger between Carlton and Granada. * One such easement could be to remove the requirement that ITV1 rolls over contracts, while retaining effective safeguards to prevent discrimination against those advertisers which still rely heavily on ITV1. Following the consultation the OFT may remit the matter to the Competition Commission, which makes the final decision on whether change to CRR is appropriate or not and, if it is, what form it should take. John Fingleton, OFT Chief Executive, said: "Since the remedy was introduced in 2003, ITV's position has changed and so has the wider market. This means it is now the right time to ask whether the remedy remains proportionate, or could be eased or removed. "Our provisional view is that we should recommend to the Competition Commission relaxation of the CRR Undertakings, while retaining safeguards for advertisers and media buyers. However we are keen to hear any new evidence or data during consultation before formally advising the Commission." Interested parties can submit their views or evidence, by February 27, 2009, to: CRR@oft.gsi.gov.uk. About ITV plc Headquartered in London, ITV plc -- http://www.itvplc.com/-- is a U.K. media company, owning all of the regional Channel 3 licenses in England and Wales. The company wholly owns three leading free- to-air digital channels: ITV2, ITV3 and ITV4. It owns the market leading cinema screen advertising businesses in the U.K. and Republic of Ireland and has similar joint ventures in continental Europe and the United States. * * * As reported in the Troubled Company Reporter-Europe on October 30, 2008, Fitch Ratings downgraded ITV plc's Long-term Issuer Default rating and senior unsecured rating to 'BB+' from 'BBB-'. Following the downgrade, the rating Outlook is now Stable. Fitch also downgraded ITV's Short-term IDR to 'B' from 'F3' and withdrew the Short-term rating. The rating action follows further downward revisions in Fitch's expectations for the UK advertising market over the medium term. ITV PLC: Fitch Gives 'BB+' Long-Term Issuer Default Rating ---------------------------------------------------------- Fitch Ratings says that The Office of Fair Trading's consultation on ITV plc's Contract Rights Renewal undertakings, published, provides some positive signs for ITV, but that it is the first step in a process which is likely to take much of this year to complete. ITV's Long-term Issuer Default Rating and senior unsecured rating are 'BB+' respectively. The Long-term IDR has a Stable Outlook. "Fitch had expected some relaxation of the CRR mechanism to reflect the changing dynamics of the market - the increased range of competitor TV offerings, and the prevalence of Internet advertising - which have put ITV in a weaker bargaining position than it was in when the remedy was introduced, and the OFT appears to have accepted this," said Alex Griffiths, Senior Director in Fitch's European TMT group. "This is, however, only the first stage in a relatively drawn out process. The recommendations are open for consultation, and only after this consultation closes will the OFT make its recommendations to the Competition Commission, which will then make an ultimate decision on the matter. Fitch will determine the full impact on ITV once the Competition Commission has released its decision." While the timing of regulatory processes can be unpredictable, Fitch does not presently see any hurdles to the originally announced timing that a remedy would be in place for the 2010 trading season. Fitch is also monitoring the developments in Ofcom's Public Service Broadcaster review. The Phase 2 consultation appears to recognize many of the arguments put forward by ITV regarding changes to the value of its PSB status over time. However, this process is also ongoing, and as the goals of the review are wider than the OFT's review, the timing and outcome are more unpredictable. The risks to ITV's performance, which drove Fitch's 28 October 2008 downgrade of ITV to 'BB+' from 'BBB-', remain in the short- term, particularly as 2009 looks like it will be a weak year for the TV advertising market in the UK. For further detail, see Fitch's announcement, entitled "Fitch Downgrades ITV to 'BB+'; Outlook Stable", available on the agency's public website, www.fitchratings.com. ITV's strong liquidity profile provides considerable support to its ratings. It is underpinned by balance-sheet cash and liquid investments of GBP573 million as of June 30, 2008 (including a GBP100 million short-term note due March 2009), available committed bank facilities of GBP450 million, with a further GBP200 million covenant-free facilities. This compares to scheduled maturities of GBP250 million in 2009 and GBP335 million in 2011. MSPA REALISATIONS: Taps Joint Administrators from Baker Tilly ------------------------------------------------------------- Lynn Robert Bailey and Guy Edward Brooke Mander of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Mspa Realisations Ltd. on Jan. 2, 2009. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: St. Philips Point Temple Row Birmingham B2 5AF England NOR-SCREEN LTD: Appoints Joint Administrators from Deloitte ----------------------------------------------------------- Ian Brown and Neil Matthews of Deloitte LLP were appointed joint administrators of Nor-Screen Ltd. on Jan. 12, 2009. The company can be reached at: Nor-Screen Ltd. Gainsborough House 34-40 Grey Street Newcastle upon Tyne NE1 6AE England NORTEL NETWORKS: Enters Administration; Ernst & Young Appointed --------------------------------------------------------------- Alan Bloom, Stephen Harris, Chris Hill and Alan Hudson of Ernst & Young LLP were appointed Joint Administrators of Nortel Networks UK Ltd and 18 other EMEA entities on Thursday, January 15, 2009. Nortel Networks Inc. is a multinational telecommunications equipment manufacturer headquartered in Toronto, Ontario, Canada with a workforce of approximately 30,000 employees globally. Nortel Networks UK Ltd is the Company's European headquarters and is based in Maidenhead, Berkshire. On a global basis, adverse economic conditions have made the current capital structure of Nortel Networks Inc. unsustainable and it is imperative that the Group addresses its financial position and the legacy costs burdening its balance sheet, to overcome current challenges and reposition itself for the future. The Group concluded that the best way to effect this transformation was to undertake a restructuring process. The Administration Orders for Nortel Networks UK Ltd and certain EMEA entities were sought by the Company after full consideration of all other alternatives, and in light of actions being taken in Canada and the USA. The Board of Nortel Networks Inc. has concluded that these steps are in the best long-term interests of Nortel and its stakeholders. The process of Administration is expected to have no immediate impact on the company's day-to-day operations including employee pay and benefits, or on customer obligations. The filing of an Administration Order for Nortel companies across EMEA has brought together a number of legal entities under a common reorganization process, covering selected European companies which have their centers of main interests in England and therefore fall under the jurisdiction of the Order. The Administration Order will allow these companies to continue to operate while a restructuring plan is completed. The Administrators will be working closely with Nortel to review the options available to EMEA Companies covered by the Administration Order in the context of the wider Group restructuring process. Alan Bloom and David Hughes of Ernst & Young LLP were appointed as Joint Administrators of Nortel (Ireland) Limited. Nortel Group, the ultimate parent company of Nortel based in Canada, filed an application for creditor protection under the Companies' Creditors Arrangement Act ("CCAA") in Canada to facilitate a comprehensive business and financial reorganization. Certain U.S. subsidiaries have filed in the United States a concurrent voluntary petition under Chapter 11 of the U.S. Bankruptcy Code as part of the proactive reorganization process. EMEA entities in the following jurisdictions are included in the Administration Order, and therefore will form part of a common reorganization process, although subject to employment and other legislation in local markets: Austria, Belgium, Czech Republic, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands, Poland, Portugal, Romania, Slovenia, Spain and Sweden. PI DISTRIBUTION: Names Joint Administrators from KPMG ----------------------------------------------------- Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of Pi Distribution (UK) Ltd. on Jan. 6, 2009. The company can be reached at: Pi Distribution (UK) Ltd. Dalton Airfield Thirsk North Yorkshire England RD PLASTICS: Taps Joint Administrators from KPMG ------------------------------------------------ Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of Rd Plastics Moulding Ltd. on Jan. 5, 2009. The company can be reached through KPMG LLP at: 1 The Embankment Neville Street Leeds LS1 4DW England SWB CYMRU: Appoints Joint Administrators from Grant Thornton ------------------------------------------------------------ Alistair Wardell and Nigel Morrison of Grant Thornton UK LLP, were appointed joint administrators of SWB CYMRU CYF on Dec. 29, 2008. The company can be reached at: SWB CYMRU CYF Tyle Teg 743 Heol Clydach Ynystawe Abertawe SA6 5BA England T. HARDING SON: Calls In Joint Administrators from PKF ------------------------------------------------------ Keith R. Morgan and Brian J. Hamblin of PKF (UK) LLP were appointed joint administrators of T. Harding Son & Company Ltd. on Dec. 22, 2008. The company can be reached through PKF (UK) LLP 18 Park Place Cardiff CF10 3PD England VICTORIA FUNDING: Moody's Downgrades Rating on Class E to 'B1' -------------------------------------------------------------- Moody's Investors Service has taken this rating action on Notes issued by Victoria Funding (EMC-III) PLC (amounts reflecting initial outstanding): Upgraded: - GBP16,500,000 Class C Mortgage Backed Floating Rate Notes due 2014, Upgraded to Aaa from Aa3; previously on 15 March 2006 Upgraded to Aa3 from A2; and - GBP17,300,000 Class D Mortgage Backed Floating Rate Notes due 2014, Upgraded to A2 from Baa2; previously on 20 October 2005 Assigned Baa2. Downgraded: - GBP3,300,000 Class E Mortgage Backed Floating Rate Notes due 2014, downgraded to B1 from Ba2; previously on 20 October 2005 Assigned Ba2. In addition, Moody's affirmed the Aaa rating of the Class B Notes. The ratings on the Class A Notes were withdrawn on November 24, 2008 due to redemption in full of the Class A Notes on October 30, 2008 following the repayment of the Calamander Investments Limited Loan on its maturity date. Victoria Funding (EMC-III) PLC closed in October 2005 and represents the securitization of initially seven commercial mortgage loans originated by Citibank, N.A., London Branch, that were secured by 18 properties located predominantly in Greater London. Currently two loans remain in the pool: (i) the Zeloof Loan (90.4% of the current pool balance) secured by a mixed use building, formerly the Truman Brewery, located in the east of the City of London; and (ii) the Brisk Loan (9.6% of the current pool balance) secured by a retail property located in Coventry in the West Midlands. The rating upgrade on the Class C and D Notes was prompted by the repayment and consequent sequential allocation of the Calamander Loan on the October 2008 Interest Payment Date and Moody's adjusted expectations with respect to the Zeloof Loan's property value. The rating downgrade on the Class E Notes is due to Moody's expectation of a quarterly interest shortfall occurring on the Class E Notes until the maturity date of the longer dated Zeloof loan. Following the Calamander loan repayment on its maturity date, the credit enhancement for the Class C Notes has increased to 49.4% from 14.3% in March 2006 when Class C was upgraded to Aa3 from A2, while the credit enhancement for the Class D Notes has increased to 7.9% compared to 1.3% at closing. The sequential payment trigger had been hit as the principal amount of the currently outstanding Notes is less than 20% of the initial principal amount of the Notes at closing. As a result, any prepayments and the final repayment from the Zeloof Loan which would have been allocated to Notes on a 100% pro-rata basis will be allocated sequentially along with any prepayments and final repayments from the Brisk Loan. Moody's has reviewed the current rental cash flow performance of and the value assumptions for the remaining properties in the pool. In terms of cash flow performance, the Brisk Loan is performing in-line with Moody's initial expectations, also taking into account the current low interest environment in the UK (the Brisk Loan pays floating interest based on the Bank of England base rate), while the Zeloof loan is performing better than Moody's initial expectations. The properties securing the two remaining loans were last valued during the second half of 2004. Taking into account the improved cash flow characteristics of the property and current market yields for this property type, Moody's has revised its initial assumptions upwards with respect to its property value assumption for the Zeloof loan from GBP26 million to GBP42 million. The rating downgrade on the Class E Notes is due to Moody's expectation of a quarterly interest shortfall occurring going forward with respect to this class. The Class E Notes are subject to an interest deferral mechanism when such shortfall in revenue funds available to pay interest on the Class E Notes is due to a prepayment of a loan. Whilst this is generally considered to be an available funds cap, it differs compared to other AFC mechanisms because the unpaid Class E interest is not extinguished on such IPD but deferred. The significant sequential paydown of the Notes since closing due to repayments and prepayments has resulted in a negative interest differential between the loans and the notes which will result in interest shortfalls on the Class E Notes in most quarters going forward. Furthermore, the Brisk Loan, which pays interest based on the Bank of England base rate, exposes the Issuer to an unhedged exposure in relation to the spread between 3-month GBP-Libor and the Bank of England base rate, which currently contributes to the negative interest differential between interest due on the loans and interest due on the notes. Consequently, Moody's understands that two reasons result in the currently negative interest differential: (i) the margin differential between the remaining loans and the outstanding Notes; and (ii) the unhedged nature of the Brisk Loan in relation to Bank of England base rate versus 3- month GBP-Libor. Due to the interest deferral mechanism of the Class E Notes, liquidity might not be available for all or part of this shortfall, resulting in a deferral with only a low likelyhood of being paid in later periods. Moody's has analyzed different interest rate scenarios and Bank of England base rate versus 3- month GBP-Libor spread scenarios and came during its review to the conclusion that the additional loss posed to Class E Noteholders due to lost interest on the Notes is, together with the portfolio credit risk expected loss, consummerate with a B1 rating. Moody's notes that the credit risk expected loss of the Class E Notes has decreased compared to closing. The last rating action on this transaction was the withdrawal of rating on the Class A notes on November 24, 2008. The latest Performance Overview for this transaction has been published on June 2, 2008. * UK: Govt Unveils Support Package for Small and Medium Businesses ------------------------------------------------------------------ Business Secretary Lord Mandelson on Wednesday, January 14, unveiled a package of measures designed to address the cash flow, credit and investment needs of small and medium businesses. The support package, which builds upon the commitments outlined in November's Pre Budget Report, consists of loan guarantees and a new Enterprise Fund aimed at helping companies struggling to access finance for working capital and investment. The Government measures include: * a GBP10 billion Working Capital Scheme, securing up to GBP20 billion of short term bank lending to companies with a turnover of up to GBP500 million * an Enterprise Finance Guarantee Scheme, securing up to GBP1.3 billion of additional bank loans to small firms with a turnover of up to GBP25 million * a GBP75 million Capital for Enterprise Fund (GBP50 million from Government augmented by GBP25 million from the banks) to invest in small businesses which need equity Business Secretary Lord Mandelson said: "UK companies are the lifeblood of the economy and it is crucial that Government acts now to provide real help to support them through the downturn and see them emerge stronger on the other side. "We know that some companies are struggling to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions. That is why we have designed a package of measures addressing different forms of credit and providing real help for businesses." The Working Capital Scheme is a direct response to the constraint on bank credit available for lending to ordinary-risk businesses with a turnover of up to GBP500 million a year. The Government will provide banks with guarantees covering 50 per cent of the risk on existing and new working capital portfolios worth up to GBP20 billion. The guarantee will secure up to GBP20 billion of working capital credit lines for companies - ensuring they are safe from reduction or withdrawal. In addition, the guarantee will free up capital which the banks must use for new lending as a condition of this scheme. This is lending that would otherwise not have been provided. The Enterprise Finance Guarantee aims to help smaller, credit- worthy companies which might otherwise fail to access the finance they need for working capital or investment finance due to the current tight lending conditions. The Government will provide GBP1 billion of guarantees to support to GBP1.3 billion of bank lending to smaller firms with an annual turnover of up to GBP25 million, which are looking for loans of up to GBP1 million for a period of up to 10 years. The guarantee, available through high street banks, will apply to loans and can also be used to convert existing overdrafts into loans to enable businesses to free up their current overdraft facilities to meet working capital demands. To help businesses raise new long-term finance, the Government will also offer to invest in viable companies which have high levels of existing debt through a new GBP75 million Capital for Enterprise Fund. Banks are contributing to this fund. The fund, to be managed externally, will provide long term capital to businesses which have exhausted traditional forms of finance. Companies can then use this capital to invest in and grow their business. Lord Mandelson also confirmed the Government is discussing with trade credit insurance providers a Government scheme to help companies affected by reductions in their credit insurance. In order to help businesses identify their financial needs, the Government launched a new "one stop shop" easy-to-use web portal. The portal, on the businesslink.gov website, will direct companies to the most appropriate form of support and help them ascertain their eligibility for a range of government support. * UK: KPMG Says Demands for Cash to Pension Schemes Looming ----------------------------------------------------------- Soaring pension deficits may lead to pension trustees demanding more cash but companies struggling in the downturn may need the funds just to keep the business going, says KPMG. Official figures released by the Pension Protection Fund on Monday, January 12, 2009, showed that the collective deficit of over 7,800 defined benefit funds in its sample rose from GBP136 billion in November 2008 to GBP194.5 billion by the end of the year, based on actuarial assumptions for 179 valuations. And the total deficit of schemes in deficit rose to almost GBP210 billion, an annual increase of GBP143 billion. Separately, a recent KPMG analysis revealed that the FTSE350 Pension Scheme assets lost GBP150 billion during 2008. There is a substantial risk that companies could see demands for cash to pension schemes increase dramatically as anxious pension fund trustees seek to shore up the losses. But this may not be the best use of the company's cash. Indeed, counter-intuitive as it may seem, it may appropriate for companies to decrease pension scheme contributions to protect the business by improving liquidity. Mike Smedley, Pensions Partner at KPMG in the UK, said: "It is important for companies and trustees to recognize that pension deficits are not the same as bank debt. Pension schemes are wholly tied to their sponsoring company and are very long term compared with bank debt. If the company goes down, the pension scheme suffers. Being flexible on contributions may be the key action that helps to ensure the underlying business's survival, which is what is most important to the pension scheme in the longer term." In addressing the current capital and liquidity crisis companies have a number of options. Companies are reducing costs, often leading to large scale redundancies, and cutting back on capital expenditure and dividends. Improved visibility and management of cash flow is also critical in current times. However, this is a difficult tightrope for companies to walk. Mr. Smedley added, "There is only so far companies can go on reducing investment and returns to shareholders who ultimately are the source of capital businesses need to survive. Now more than ever, it is crucial that pension trustees work with companies to ensure their future viability and provide much needed financial flexibility." There are two key areas that businesses are addressing with their pension trustees during the current time. Reducing or changing future pension promises is helping to significantly reduce costs for companies. Mr. Smedley commented, "We are seeing companies becoming increasingly concerned over the future defined benefit liabilities that are building up in their pension schemes. As businesses contract these are becoming more significant relative to the company. Addressing this now not only removes this risk but provides much needed cost reduction to support the future viability of companies." Companies under pressure from their banks are also working with trustees to improve their cash position. It can be in trustees' best interests to agree to a short term reduction in cash payments, potentially helping business avoid bank covenant breaches, maintain control and improve long-term prospects. "There is flexibility under the funding rules to renegotiate deficit payment periods with trustees," said Mr. Smedley. "We also expect that the Pension Regulator will be more commercial in this regard than trustees and their advisers may expect. It is clearly in pension schemes interests to have a viable ongoing employer and trustees can help ensure both this and the future of their own schemes." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * UK: Roland Berger Says 33% Unused Biz Credit Lines Withdrawn -------------------------------------------------------------- Banks have withdrawn unused credit facilities from over a third (34%) of the UK's largest companies, starving them of liquidity, damaging revenues and forcing them to consider job cuts, new research from Roland Berger Strategy Consultants revealed Wednesday, January 14. On average, a third (33%) of unused credit lines have been withdrawn from affected companies amid toughening financial conditions. The study, Credit � Where it's Due?, draws opinion from finance managers at 137 of the UK's top 1000 corporations by turnover. Uncertain Outlook Credit conditions in 2009 look set to be equally bleak, and will seriously impair firms' ability to survive the recession unscathed, the report reveals. Only around half (52%) of companies expect to be able to renew current credit lines in full in the next 12 months. In addition, finance managers expressed serious concern that the credit shortage will endure longer than their businesses can cope with, predicting tightening credit for a further 19 months on average. By contrast, they expect to be able to operate for only 17 months without material damage to their businesses under current credit conditions. Worse still, almost half (47%) anticipate material damage before the year is out. Klaus Kremers, Restructuring and Turnaround Partner at Roland Berger Strategy Consultants, comments: "The tightening of credit to UK firms is well documented, but these findings reveal the severity of the shortage at the highest levels of British industry. "UK corporations are feeling the squeeze, with half not expecting to survive 2009 unscathed." Impact of Credit Withdrawal The removal of credit lines is having a clear negative impact on businesses, as recognized by the majority (70%) of firms affected. The practice has left over half (55%) of companies with poor liquidity, and a third (33%) reporting a direct loss of revenues as a result. Unused credit lines are key to the effective running of businesses � two thirds (60%) of finance managers earmark the cash as a safety buffer against a worsening economy. Other potential uses include financing long-term assets (according to 45% of managers), realizing investment opportunities (45%) or general working capital (64%). However, corporations affected have seen on average 33% of unused credit lines withdrawn by banks. Additionally, half (55%) have seen their ratings downgraded, and over a third (36%) reporting increased interest rates on their debt. Klaus Kremers, Restructuring and Turnaround Partner at Roland Berger Strategy Consultants, comments: "Credit can be the vital lifeblood of a firm's operations, but is being progressively eroded as the credit crisis persists." "UK firms are being starved of essential working capital, which is damaging revenues, ability to invest and future competitiveness. With the lack of a financial safety net, 2009 may see some serious casualties." Strategic Responses Alarmingly, 54% of firms state the current lack of liquidity will force them to cut jobs. Additionally, over a third (34%) of firms confess to feeling pressure to spend unused credit facilities unnecessarily to avoid them being withdrawn. Enforced spending is being directed to general cash flow and working capital, according to 36% of companies, as well as being placed in savings (23%) or used to finance long-term assets (18%). Other coping strategies cited by finance managers include: reducing company funding by operational (40%) and structural measures (40%); increasing medium and long term funding (27%); and seeking alternative sources of finance (27%). Klaus Kremers, Restructuring and Turnaround Partner at Roland Berger Strategy Consultants, comments: "The credit crisis is not going away. Companies cannot afford to bury their heads in the hope that it will turn around any time soon. "Firms must place liquidity at the very top of the boardroom agenda. If they focus only on profit, or worse still, stop spending and investing altogether, they run the risk of operations grinding to a halt. "Businesses must decide which activities to focus on, but also need to collect and control existing cash, review pricing and reduce net working capital through operational streamlining. And most importantly, keep lines of communication open with banks and credit insurers." Firms' Frustrations UK companies feel let down by both the Government and banks. Over half of finance managers (58%) believe the Government is not doing enough to boost bank lending to major corporates, and near half (41%) lack confidence in the Government's initiatives to boost the economy. Meanwhile, over a third (34%) claim to be "very frustrated" with their banks' lack of support for their business. About the Study Credit � Where it's Due? is based on interviews with finance managers at 137 of the UK's top 1000 companies by turnover. Respondents were drawn from manufacturing, retail and consumer goods, financial services (excluding banks) and property and construction sectors. All participating companies have a minimum turnover of GBP250 million, with 60% of firms having a turnover in excess of GBP750 million. About Roland Berger Roland Berger Strategy Consultants, founded in 1967, is one of the world's leading strategy consultancies. The Restructuring and Turnaround Practice Group of Roland Berger is the European market leader in corporate recovery. With 36 offices in 24 countries, the company has successful operations in all major international markets. In 2007, it generated more than EUR600 million in revenues with 2,000 employees. The strategy consultancy is an independent partnership exclusively owned by more than 160 Partners. * UK: KPMG Says Retail Sales Values Fell 3.3% in December 2008 -------------------------------------------------------------- According to the BRC-KPMG Retail Sales Monitor for December 2008: * UK retail sales values fell 3.3% on a like-for-like basis, and 1.4% on a total basis, from December 2007. By both measures, this was the worst December since the survey began 14 years ago and, barring Easter distortions, the worst performance of any month in that time. * Food and footwear were the only sectors to show sales up on a year ago � the latter reflecting further heavy discounting. Clothing, furniture and big-ticket homewares fell further below year-earlier levels. * The first half of December was very tough for many. Christmas buying came later than usual: there were more shopping days in Christmas week this year and shoppers tended to wait for discounts and early clearance sales. * Non-food non-store sales in December were 30.0% higher than a year ago. This was stronger than the 16.6% gain in November, as people were more confident about Christmas shopping online and several stores had later last order dates than last Christmas. Stephen Robertson, Director General, British Retail Consortium, said: "These are truly dreadful numbers. Some retailers were more successful than others and the second half of December was better than the first. But overall the food sector was almost the only one to show growth. And even this was at the slowest rate since last March. Footwear was the only other sector where sales were up on a year ago. Otherwise, non-food retailers had a torrid December despite a blizzard of promotions and deals, which would have hit margins. Many hard-pressed customers couldn't be seduced into spending. "This is no time for the Government to be piling new burdens on a major job-supporting sector such as retailing. For example, its plans to push retailers' business rates bills up by GBP1.6 billion over the next two years urgently needs revising." Helen Dickinson, Head of Retail, KPMG, said: "December's performance has historically set the scene for the year ahead, so the outlook is indeed bleak. In a business environment where cash is even more important than ever, due to the impact of the 'credit crunch', retailers did all they could in December to keep the money coming in, raising discounts across the month to unprecedented levels. That this was the worst December sales performance since the survey began 14 years ago is testament to the severity of the shift in mentality of the consumer. Although the food sector continues to hold up, most non-food retailers are having to manage the 'double whammy' of falling sales and falling margins and this doesn't look like changing any time soon." Food & Drink � Joanne Denney-Finch, Chief Executive, IGD, said: "Shoppers continued to enjoy their traditional Christmas dinners in 2008, maintaining spending on food and drink. Indeed many food and grocery retailers have been reporting very healthy sales in the days running up to Christmas. "December's grocery sales remained robust, but grew more slowly than the previous month. This may be down to retailers promoting heavily during the last week of November to encourage people to make some Christmas purchases early. Food inflation also started to ease during the final part of 2008." Non-Food Non-Store* - Sharon Hardiman, Head of Non-Store Retailing, BRC, said: "The sharp contrast between December's strong non- store sales growth and the previous month indicates customers are increasingly confident with leaving Internet shopping until nearer Christmas. "Some retailers offered later dates for guaranteed Christmas delivery this year. While this is a fast-growing sector, it still represents too small a part of total spending to compensate the poor performance of retailing overall." *Non-Food Non-Store sales are transactions which take place over the Internet, or via mail order or telesales. About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. =============== X X X X X X X X =============== * KPMG Says 2009 a Tough Year for General Insurers --------------------------------------------------- KPMG published its general insurance outlook for 2009. "2009 will be a tough year for general insurers, but not as tough as for other financial services players," says Mark Winlow, European Head of General Insurance Performance Advisory Services at KPMG. Return of increasing prices * More insurers will be targeting underwriting profit in 2009 "Investment returns will be very low in 2009 and will not compensate for underwriting losses. Moreover, many insurers have little left in terms of reserves to release. Currently, some insurers, desperate to retain business in a recessionary environment, are eroding capital by under pricing risks, but this cannot be sustained. Generally, commerce and consumers appreciate that the future will be riskier and so insurance costs will be higher. The only way ahead is for premiums to rise, thus yielding a return to a hardening market. Increased incidence of fraud * Insurers need to increase vigilance for fraud by customers and staff "Economic downturns are linked to increased fraud, both inflated and false claims as well as non- and false disclosure. Insurers are aware of this link but now have more tools available to protect against this activity. These tools and disciplines need not only be applied externally, but internally as well, especially where claims and payment operations have been outsourced. Battling against increased levels of fraud will be a paramount activity for insurers in 2009. Insurers and brokers will need to make do with less * Cost optimization will be key "We expect that insurers will seek to reduce expense ratios in 2009 as a way to improve profitability. Large international groups will draw in spending decisions to head office and only those local investments with compelling business cases will be made. We expect to continue to see significant spend in direct marketing, for instance, but the challenge will be to spend just enough to keep ahead of the competition. This will also apply to distribution more generally: Broker commission and income will trend downwards and the pace of broker consolidation will slow; affinity deals will be revisited to concentrate on those insurance products that are tied closely to the partner's product or service. Overall, both insurers and brokers will need to make do with less. Drastic changes to the competitive landscape unlikely, but there is appetite for assets * Banks divesting insurance operations may find buyers, but challenges remain "The capital challenges faced by banks have already led to mergers and potential, pending divestments. Notwithstanding the protracted sale process relative to RBS Insurance, there will be an appetite for these assets in 2009 and there are currently players in the market who are still well-placed to acquire at realistic prices. These will be companies that have strong capital positions, can be confident in their risk management and capital measurement systems and for whom the assets fit their strategic aims, typically enabling cost synergies from the combination of operations. The challenge for this year will be to bridge the gap between buyer and seller price expectations and for buyers to maintain support from their own investors with sound investment stories. More intrusive regulation * Being prepared is key "In 2009, we expect to see more intrusive regulation on the part of the Financial Services Authority (FSA). Insurers and brokers should expect the regulator to accelerate its visits to those organizations it has not yet seen, generally visit on a more regular basis, and probe more deeply into every aspect of the business. Stress and scenario testing and liquidity will be high on their agenda, even for organizations that have previously showed little sign of exposure. Such regulation will necessarily mean an extra cost burden for all insurers and brokers. Careful preparation and management of these visits will be crucial to avoiding even heavier burdens." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * EUROPE: ECB Cuts Rate on Main Refinancing Operations to 2% ------------------------------------------------------------ CNN reports that the European Central Bank on Thursday, January 15, cut the rate on main refinancing operations by half a percentage point to 2 percent. CNN notes this is the lowest level in the bank's 10-year history. According to CNN, the decision, which takes effect January 21, is aimed at stimulating Europe's economy in the midst of a global economic slowdown. * BOND PRICING: For the Week Jan. 12 to Jan. 16, 2009 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Oester Volksbk 4.810 07/29/25 EUR 68.36 BELGIUM ------- Barry Calle SVCS 6.000 07/13/17 EUR 73.40 CYPRUS ------ Abh Financial Lt 8.200 06/25/12 USD 64.90 Alfa MTN Invest 9.250 06/24/13 USD 61.67 FRANCE ------ Alcatel SA 4.750 01/01/11 EUR 13.40 6.380 04/07/14 EUR 68.23 Axa SA 8.600 12/15/30 USD 69.91 BNP Paribas 0.250 12/20/14 USD 67.97 Calyon 6.000 06/18/47 EUR 37.30 Soc Air France 2.750 04/01/20 EUR 19.18 Wavecom SA 1.750 01/01/14 EUR 30.53 GREECE ------ Antenna TV SA 7.250 02/15/15 EUR 65.00 HUNGARY ------- Agrokor 7.000 11/23/11 EUR 70.70 IRELAND ------- Allied Irish Bks 5.250 03/10/25 GBP 75.47 5.630 11/29/30 GBP 69.36 Alfa Bank 8.630 12/09/15 USD 43.76 8.640 02/22/17 USD 39.91 Ardagh Glass 7.130 06/15/17 EUR 72.20 Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Bank Soyuz 9.380 02/16/10 USD 74.99 ITALY ----- Banca Italease 3.000 06/30/11 EUR 61.11 3.000 09/30/11 EUR 59.16 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 59.26 Ak Bars Bank 9.250 06/20/11 USD 68.43 Alrosa Finance 8.880 11/17/14 USD 66.44 Bank of Moscow 7.340 05/13/13 USD 64.20 7.500 11/25/15 USD 45.64 6.810 05/10/17 USD 40.65 Beverage Pack 8.000 12/15/16 EUR 66.06 9.500 06/15/17 EUR 44.00 Breeze 4.520 04/19/27 EUR 67.22 11.750 04/19/27 EUR 72.25 NETHERLANDS ----------- ABN Amro Bank NV 6.250 06/29/35 EUR 54.18 Aegon NV 4.630 12/09/19 EUR 74.69 6.130 12/15/31 GBP 72.51 Air Berlin Finance BV 1.500 04/11/27 EUR 37.36 Alfa Bk Ukraine 9.750 12/22/09 USD 101.51 ALB Finance BV 9.750 02/14/11 GBP 37.12 8.750 04/20/11 USD 42.56 7.880 02/01/12 EUR 34.93 9.250 09/25/13 USD 43.12 ASM International NV 4.250 12/06/11 USD 63.92 ASML Holding NV 5.750 06/13/17 EUR 61.36 Astana Finance 7.880 06/08/10 EUR 58.06 9.000 11/16/11 USD 49.87 ATF Capital BV 9.250 02/21/14 USD 63.18 BK Ned Gemeenten 0.500 06/27/18 CAD 68.60 0.500 02/24/25 CAD 48.06 Centercrdt Intl 8.000 02/02/11 USD 56.08 8.630 01/30/14 USD 39.05 Hit Finance BV 4.880 10/27/21 EUR 72.10 JSC Bank Georgia 9.000 02/08/12 USD 46.41 Turanalem Fin BV 7.130 12/21/09 GBP 70.24 7.880 06/02/10 USD 62.62 6.250 09/27/11 EUR 46.65 7.750 04/25/13 USD 40.83 8.000 03/24/14 USD 45.07 8.500 02/10/15 USD 46.69 8.250 01/22/37 USD 44.89 ROMANIA ------- Bucharest 4.130 06/22/15 EUR 52.14 RUSSIA ------ Sistema Capital 8.880 01/28/11 USD 74.85 SPAIN ----- Abertis 5.990 05/14/38 EUR 73.76 Abertis Infra 4.380 03/30/20 EUR 77.45 Auvisa 4.790 12/15/27 EUR 64.92 UNITED KINGDOM -------------- Amlin Plc 6.500 12/19/26 GBP 65.25 Anglian Water Finance Plc 2.400 04/20/35 GBP 44.65 Ashtead Holdings 8.630 08/01/15 USD 59.13 Aspire Defence 4.670 03/31/40 GBP 61.19 Aviva Plc 5.250 10/02/23 EUR 66.20 6.880 05/22/38 EUR 61.61 Bank of India 6.630 09/22/21 USD 76.44 Beazley Group 7.250 10/17/26 GBP 75.72 Bradford&Bin Bld 7.630 02/16/10 GBP 30.95 6.630 06/16/23 GBP 22.86 4.910 02/01/47 EUR 66.45 BL Super Finance 4.480 10/04/25 GBP 74.82 Britannia Bldg 5.750 12/02/24 GBP 71.43 5.880 03/28/33 GBP 63.70 British Airways Plc 8.750 08/23/16 GBP 77.50 Brit Insurance 6.630 12/09/30 GBP 71.53 British Land Co 5.010 09/24/35 GBP 74.22 5.260 09/24/35 GBP 71.34 Brit Sky Broadca 6.000 05/21/27 GBP 73.42 British Tel Plc 5.750 12/07/28 GBP 71.42 6.380 06/23/37 GBP 74.54 Broadgate Finance Plc 4.850 04/05/31 GBP 74.09 5.100 04/05/33 GBP 70.49 CGNU Plc 6.130 11/16/26 GBP 65.30 Heating Finance 7.880 03/31/14 GBP 38.77 ********* 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. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. 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 * * *