/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090121.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, January 21, 2009, Vol. 10, No. 14 Headlines A U S T R I A DIETER MAYER: Claims Registration Period Ends February 2 ENERGYCABIN LLC: Claims Registration Period Ends February 2 ERTUGRUL KOC: Claims Registration Period Ends February 2 FIRAT VERPUTZ: Claims Registration Period Ends February 2 KARABOVA LLC: Claims Registration Period Ends February 2 L 89 LLC: Claims Registration Period Ends February 2 MARTOS & PARTNER: Claims Registration Period Ends February 2 ZSH BAU: Claims Registration Period Ends January 30 B E L G I U M DEXIA GROUP: Moody's Cuts BFSRs on Main Banking Entities to D+ C Z E C H R E P U B L I C BOHEMIA CRYSTALEX: Declared Insolvent by Prague Municipal Court F R A N C E EDF: Fitch Affirms Rating on FCC Minotaure Class C Notes at BB G E R M A N Y BOGNER FLIESENSTUDIO: Claims Registration Period Ends March 25 CLARIN-CHEMIE GMBH: Claims Registration Period Ends Feb. 9 EWS ELEKTROTECHNIK: Claims Registration Period Ends February 6 FORD MOTOR: Mitec Files Breach of Contract Suit JUEPO GMBH: Claims Registration Period Ends February 29 MISPA GMBH: Claims Registration Period Ends February 13 I R E L A N D ANGLO IRISH: Moody's Downgrades Financial Strength Rating to 'E+' CHARTBUSTERS: Two Creditors Oppose Court Protection I T A L Y CHRYSLER LLC: Fiat Mulls Acquiring 35% Stake in Chrysler K A Z A K H S T A N AMT OIL: Proof of Claim Deadline Slated for February 26 ARKAU LLP: Creditors Must File Claims by February 26 KAZAKHGOLD GROUP: Fitch Junks Issuer Default Rating from 'B' MAILY KENT: Claims Filing Period Ends February 27 PROM AUTO: Creditors' Proofs of Claim Due on February 26 RMZ-LANDSHAFT LLP: Claims Registration Period Ends February 26 WEST-STORY LLP: Proof of Claim Deadline Slated for February 27 K Y R G Y Z S T A N STYLE STROY: Creditors Must File Claims by February 26 L A T V I A PAREX BANKA: FCMC Imposes Restriction on Loan Issuance L I T H U A N I A FLYLAL: Suspends Operations, May File for Bankruptcy N E T H E R L A N D S LYONDELL CHEMICAL: U.S. Trustee Forms 7-Member Creditors Panel LYONDELL CHEMICAL: Equistar Seeks US$28MM Payment from Solutia R U S S I A CHERNOMORETS-OIL LLC: Creditors Must File Claims by February 16 GEO-KOM-STROY LLC: Creditors Must File Claims by March 16 LEDYANOY DOM LLC: Creditors Must File Claims by February 16 NOVOLIPETSK STEEL: Fitch Affirms Issuer Default Rating at 'BB+' SEVERSTROY 21: Creditors Must File Claims by February 16 TANTAL-D-K CJSC: Creditors Must File Claims by February 16 TMK OAO: Shipments Up 5% in 2008 on IPSCO Asset Acquisition VIMPEL COMMUNICATIONS: S&P Affirms 'BB+' Corporate Credit Ratings * RUSSIA: Coface Puts Country Rating Under Negative Watch S W I T Z E R L A N D CAPRITAURO INVESTMENTS: Creditors Must File Claims by Jan. 28 FORINVEST BETEILIGUNGEN: Deadline to File Claims Set Jan. 24 HOUSE OF FASHION: Creditors Have Until Jan. 24 to File Claims LARO SPORT: Proof of Claim Filing Deadline Set Jan. 24 STERLING TRADING: Creditors' Proofs of Claim Due by Jan. 23 TCM JSC: Jan. 24 Set as Deadline to File Claims ZB ARCHITEKTUR: Creditors Must File Proofs of Claim by Jan. 23 ZWAHLEN FOTO-OPTI: Deadline to File Proofs of Claim Set Jan. 22 U K R A I N E AVTOTOVARY LLC: Creditors Must File Claims by January 23 BALTIMOR-FISH LLC: Creditors Must File Claims by January 23 DON-LINK LLC: Creditors Must File Claims by January 23 DRUZHBA HOTEL: Creditors Must File Claims by January 23 DWELLING INDUSTRIAL: Creditors Must File Claims by January 23 EARTH FERTILITY: Creditors Must File Claims by January 23 ENAKIEVO REGIONAL: Creditors Must File Claims by January 23 INSECT OFF: Creditors Must File Claims by January 23 KRASNY LUCH: Creditors Must File Claims by January 23 LUGANSKOYE LLC: Creditors Must File Claims by January 23 SPETSMETIZ LLC: Creditors Must File Claims by January 23 TALAN LLC: Creditors Must File Claims by January 23 U N I T E D K I N G D O M ACROBAT MUSIC: Appoints Joint Administrators from Tenon Recovery ALPHA ANODISING: Names Baker Tilly as Joint Administrators ASTRO EXHIBITIONS: Appoints Joint Liquidators from PKF CROMWELL PRESS: Taps Joint Administrators from KPMG DSG INTERNATIONAL: Group Sales Down 1% for 12-Wks Ended Jan. 10 DSG INTERNATIONAL: Moody's Reviews 'Ba3' Rating for Possible Cut DUCHY CATERING: Appoints Joint Administrators from KPMG FUTURE-PEOPLE RECRUITMENT: Names Joint Liquidators from BDO GREAT LEIGHS: Goes Into Administration After Losing License HSBC HOLDINGS: Sub-Prime Biz May Spur Need for Substantial Funding MOSAIC FASHIONS: Mulls Sale of Shoe Studio Chain ROYAL BANK: Eyes GBP7 - 8 billion Full Year 2008 Loss ROYAL BANK: Fitch Downgrades Individual Rating to 'E' ROYAL BANK: S&P Cuts Ratings on Hybrid Capital Issues to 'BB' SOFIA WORKS: Taps Joint Liquidators from Tenon Recovery TALES OF ROBIN HOOD: Goes Into Voluntary Liquidation TATA MOTORS: Jaguar Land Rover Halts Work at Birmingham Plant UROPA SECURITIES: S&P Puts Two BB-Rated Note Classes on Watch Neg. ********* ============= A U S T R I A ============= DIETER MAYER: Claims Registration Period Ends February 2 -------------------------------------------------------- Creditors owed money by LLC Dieter Mayer (FN 102678y) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Georg Freimueller Alser Strasse 21 1080 Wien Austria Tel: 406 05 51-Serie Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 16, 2009, for the examination of claims at: Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 3 S 149/08v). ENERGYCABIN LLC: Claims Registration Period Ends February 2 ----------------------------------------------------------- Creditors owed money by LLC EnergyCabin (FN 265641z) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Stefan Kohlfuerst Marburgerkai 47 8010 Graz Austria Tel: 0316/815454 Fax: 0316/815454-22 E-mail: kohlfuerst@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 17, 2009, for the examination of claims at: Graz Land Court Room 205 Graz Austria Headquartered in Gleisdorf, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 40 S 69/08g). ERTUGRUL KOC: Claims Registration Period Ends February 2 -------------------------------------------------------- Creditors owed money by KG Ertugrul Koc (FN 291502f) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Georg Kahlig Siebensterngasse 42/3 1070 Wien Austria Tel: 523 47 91-0 Fax: 523 47 91-33 E-mail: kahlig.partner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 16, 2009, for the examination of claims at: Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 15, 2008, (Bankr. Case No. 3 S 148/08x). FIRAT VERPUTZ: Claims Registration Period Ends February 2 --------------------------------------------------------- Creditors owed money by OEG Firat Verputz (FN 241582v) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Bernhard Ess Hirschgraben 14 6800 Feldkirch Austria Tel: 05522/79090 Fax: 05522/79090-7 E-mail: rechtsanwalt-feldkirch@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Feb. 12, 2009, for the examination of claims at: Land Court of Feldkirch Meeting Room 45 Feldkirch Austria Headquartered in Goetzis, Austria, the Debtor declared bankruptcy on Dec. 18, 2008, (Bankr. Case No. 14 S 63/08i). KARABOVA LLC: Claims Registration Period Ends February 2 -------------------------------------------------------- Creditors owed money by LLC Karabova (FN 296676p) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Daniel Lampersberger Esteplatz 4 1030 Wien Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 16, 2009, for the examination of claims at: Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 18, 2008, (Bankr. Case No. 3 S 151/08p). L 89 LLC: Claims Registration Period Ends February 2 ---------------------------------------------------- Creditors owed money by LLC L 89 (FN 294215w) have until Feb. 2, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Wien Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on Feb. 16, 2009, for the examination of claims at: Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 19, 2008, (Bankr. Case No. 3 S 154/08d). MARTOS & PARTNER: Claims Registration Period Ends February 2 ------------------------------------------------------------ Creditors owed money by LLC Dr. Martos & Partner (FN 186745a) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Brigitte Stampfer Stadlergasse 27 1130 Wien Austria Tel: 877 33 30 Serie Fax: 877 33 30-33 E-mail: ra-stampfer@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 16, 2009, for the examination of claims at: Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 17, 2008, (Bankr. Case No. 3 S 150/08s). ZSH BAU: Claims Registration Period Ends January 30 --------------------------------------------------- Creditors owed money by LLC Gleichweit (FN 263181g) have until Jan. 30, 2009, to file written proofs of claim to the court- appointed estate administrator: Hans Georg Popp Bahnhofstr. 22/1 8112 Gratwein Austria Tel: 03124/55 0 77 Fax: 03124/55 0 77 - 4 E-mail: kanzlei@popp-strauss.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 4, 2009, for the examination of claims at: Graz Land Court Room 222 Graz Austria Headquartered in Frohnleiten, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 26 S 154/08d). ============= B E L G I U M ============= DEXIA GROUP: Moody's Cuts BFSRs on Main Banking Entities to D+ -------------------------------------------------------------- Moody's Investors Service has downgraded the long-term debt and deposit ratings of Dexia Group's main banking entities, Dexia Credit Local, Dexia Bank Belgium, Dexia Banque Internationale � Luxembourg to A1 from Aa3. In addition, the Bank Financial Strength Ratings of DCL, DBB and DBIL have been downgraded to D+ (mapping to a Baseline Credit Assessment of Ba1) from C- (which mapped to a Baseline Credit Assessment of Baa2). Ratings of subordinated and junior subordinated debts issued by those entities and/or Dexia SA are also downgraded as described in more detail below. All long-term ratings and BFSRs have been assigned a negative outlook. The short-term debt and deposit ratings have been confirmed at Prime- 1. This rating action concludes a review for possible downgrade that was initiated on October 1, 2008. Subsequently, the backed short-term rating of Prime-1 assigned on January 13, 2009 has been withdrawn following the confirmation of the Prime-1 short-term rating of the Group's main entities. Indeed, Moody's does not assign backed Prime-1 rating for issuers that already have a Prime-1 rating. Moody's acknowledges the support by the national governments of Belgium, France and Luxembourg, as well as by the Belgian local governments, evidenced by the capital increase and guarantee agreements that have been provided to Dexia Group. Public sector ownership within Dexia is now above 50% and support from those key shareholders will continue to be a major rating factor going forward. Moody's anticipates that systemic support for the Dexia group will continue and has incorporated this support by providing a six-notch uplift to the BFSR. At the same time, Moody's took into account the significant imbalances in Dexia's balance sheet and the challenging funding profile of the group, which are expected to impact the group's performance over the medium term. The rating actions reflect the risks associated with significant imbalances in Dexia's balance sheet, which have been exacerbated during periods of liquidity stress, as well as the increasing credit losses and provisioning required over the past quarters. Dexia's over-reliance on short-term financing and its very limited access to both unsecured and secured funding in the interbank market since September 2008 have required strong State and central bank support in order to meet the group's funding needs. In addition, increasing writedowns have negatively weighed on profitability levels while the group also recorded significant negative reserves in its Available for Sale portfolio. These factors remain a matter of concern that has led to the rating action. On September 30, 2008, the Governments of Belgium and France announced a total capital injection of EUR6 billion in exchange for stakes in Dexia SA, and the Luxembourg Government announced it would invest a further EUR376 million in convertible bonds in DBIL. Effective October 9, 2008, the governments of Belgium, France and Luxembourg provided a temporary joint guarantee up to a maximum of EUR150 billion, to support Dexia Group's short-to medium-term refinancing on the wholesale markets. In addition, a guarantee by the Belgian and French States on the portfolio of Dexia's US subsidiary FSA Financial Products, in excess of a US$4.5 billion first-loss covered by Dexia, aims at facilitating the sale of FSA's financial guaranty business planned in the first half of 2009. Moody's notes that these strong statements of support from the public authorities, strengthening Dexia's capital protection and financial flexibility in the short term, represent a positive element factored in the long-term debt and deposit ratings and are mirrored in a six-notch uplift from Dexia's Baseline Credit Assessment of Ba1. Moody's views positively the new management team's objective to address the balance sheet's mismatches in order to ensure the long-term viability of Dexia's franchises and business model, by, inter-alia, rebalancing the funding base from central banks and short-term wholesale markets to more steady long-term debt and retail deposits, and by re-focusing on two core activities -- public finance and retail banking -- in main geographical areas. Moody's notes in particular management's strong resolve to preserve the group's core public and project finance franchise, clearly embedded in its business model, in which Dexia exhibits leading positions in Belgium, France and Italy. Moody's expects that this strategic refocus, along with a more robust and long- term funding base that is less dependent on central banks, will result in a less volatile and more sustainable business model over the medium term. Moody's notes, however, that room for maneuver for de-risking will be constrained by the magnitude of Dexia's securities portfolio-- in absolute terms as well as relative to the group's total assets -- which is currently costly to downsize. This, along with higher funding costs, might result in an erosion of the group's overall market share over time. Looking ahead, Moody's expects that potential losses in the EUR174 billion securities and banking portfolios -- especially structured finance, exposures to monolines and debt issued by financial institutions -- higher funding costs and the likely increase in provisioning, will continue to damage the group's profitability in the coming quarters. In addition, the completion of the sale of FSA's insurance activities and direct consolidation of FSA Financial Products are expected to erode Dexia's regulatory capital metrics, although Moody's anticipates these to remain at satisfactory levels given the headroom provided by the recent capital injection. Moody's also comments that the Tier 1 ratio of 14.5% as reported at end of September 2008, does not fully reflect the potential forthcoming pressure on the group's capital, as it does not incorporate the AFS reserve of minus EUR11 billion as of end-September 2008. The negative outlook reflects Moody's expectations of weakening profitability metrics and reduced capital headroom going forward. It also incorporates the uncertainty related to the successful de- risking strategy while preserving the group's core public/project finance and retail banking franchises, as well as to Dexia Group's ability to achieve a more steady funding base that is less dependent on outside support. Moody's acknowledges the very high level of integration and mutual support that prevail within the centrally managed Dexia Group. This high level of integration will continue to be reflected in Moody's approach of assigning BFSR and debt and deposit ratings at the same level for the three main Group companies (DCL, DBB and DBIL), unless significant changes in the group's structure motivate the need to adjust the current approach. In respect of the Group's main operating units, these ratings actions have been taken: - Dexia Credit Local's BFSR downgraded to D+ from C-, deposit and senior unsecured debt ratings downgraded to A1 from Aa3, subordinated debt rating downgraded to A2 from A1, and preferred stock rating downgraded to Baa1 from A2; a three- notch differential below senior unsecured rating applies to preferred stock's rating due to Dexia Credit Local's BFSR being downgraded in the D category; all ratings have a negative outlook. The Prime-1 short-term rating is confirmed. - Dexia Bank Belgium's BFSR downgraded to D+ from C-, deposit and senior unsecured debt ratings downgraded to A1 from Aa3, and subordinated debt and junior subordinated debt ratings downgraded to A2 and A3, respectively, from A1; a two-notch differential below senior unsecured rating applies to junior subordinated debt rating due to Dexia Banque Belgium's BFSR being downgraded in the D category; all ratings have a negative outlook. The Prime-1 short-term rating is confirmed. - Dexia Banque Internationale a Luxembourg's BFSR downgraded to D+ from C-, deposit and senior unsecured debt ratings downgraded to A1 from Aa3, subordinated debt ratings and junior subordinated debt ratings downgraded to A2 and A3, respectively, from A1, and preferred stock rating downgraded to Baa1 from A2; a two-notch and three-notch differential, respectively, below senior unsecured rating applies to junior subordinated debt and preferred stock's ratings due to Dexia Banque Internationale � Luxembourg's BFSR being downgraded in the D category; all ratings have a negative outlook. The Prime-1 short-term rating is confirmed. - Dexia Funding Luxembourg's backed preferred stock downgraded to Baa1 from A2 with negative outlook. The covered bonds issued by Dexia Credit Local, Dexia Municipal Agency and Dexia Sabadell SA are not covered by this press release. In respect of the Group's other subsidiaries, these ratings actions have been taken: - Dexia Kommunalkredit Bank's BFSR is affirmed at C-, long-term deposit and senior unsecured debt ratings was downgraded to Baa2 from A2, and subordinated debt rating was downgraded to Baa3 from A3; the short-term Prime-1 rating was downgraded to Prime-2; all ratings, including Prime-2 short-term deposit rating, remain on review for possible downgrade. These rating actions are subsequent to the rating actions taken on Dexia Kommunalkredit Bank's parent company: -- Dexia Crediop S.p.A.'s Prime-1 short-term rating is confirmed. -- Crediop Overseas Bank Limited's short-term Prime-1 rating is confirmed. -- Dexia CLF Finance's backed long-term senior unsecured rating downgraded to A1 from Aa3; this rating carries a negative outlook. -- Dexia Delaware LLC's Prime-1 backed CP rating is confirmed. -- Dexia Public Finance Norden's backed long-term bank deposit rating downgraded to A1 from Aa3; this rating carries a negative outlook. The Prime-1 short-term deposit rating is confirmed. -- Dexia Credit Local, Stockholm Branch's Prime-1 short-term deposit rating is confirmed. -- Dexia Credit Local New York Branch's long-term bank deposit rating downgraded to A1 from Aa3 with a negative outlook; the Prime-1 short-term deposit rating is confirmed. -- Dexia Credit Local Tokyo Branch's long-term bank deposit rating downgraded to A1 from Aa3; this rating carries a negative outlook. The Prime-1 short-term deposit rating is confirmed. -- Dexia Funding Netherlands' backed long-term senior unsecured rating downgraded to A1 from Aa3 and backed subordinated debt rating downgraded to A2 from A1; all ratings carry a negative outlook. The Prime-1 short-term deposit rating is confirmed. -- Dexia Overseas Limited's long-term backed senior unsecured rating downgraded to A1 from Aa3, backed subordinated debt rating and backed junior subordinated debt ratings downgraded to, respectively, A2 and A3, from A1; all ratings carry a negative outlook. -- Dexia Financial Products' Prime-1 backed CP rating is confirmed. No ratings action has been taken on these ratings of the Group's other subsidiaries: -- Dexia Crediop S.p.A.'s BFSR at C, long-term deposit and senior unsecured debt ratings at A1, and subordinated debt rating at A2 remain on review for possible downgrade; -- Crediop Overseas Bank Limited's backed long-term senior unsecured rating at A1, and backed subordinated debt rating at A2 remain on review for possible downgrade. -- Dexia Sabadell S.A.'s BFSR at C+, long-term deposit rating at A2 and Prime-1 short-term deposit rating remain on review for possible downgrade. -- The ratings of the group's Turkish subsidiary DenizBank remain unchanged as it also benefits from systemic support within Turkey: DenizBank's local currency long-term deposit and senior unsecured debt ratings of Baa1; the foreign currency long-term deposit rating of B1; the BFSR of C- mapping to a Baseline Credit Assessment of Baa2; all ratings carry a stable outlook; the local currency and foreign currency short-term deposit ratings of Prime-2 and Non-Prime, respectively. The last rating action on Dexia Group's main banking entities was on October 1, 2008, when Moody's downgraded the BFSRs of Dexia Credit Local, Dexia Bank Belgium and Dexia Banque Internationale � Luxembourg to C- from B+, C- from B- and C- from B-, respectively. In addition, the three entities' long-term debt and deposit ratings were downgraded to Aa3 from Aa1. All ratings, including BFSRs, long-term debt and deposit ratings and short-term ratings, were placed on review for possible further downgrade. Headquartered in Brussels, Dexia SA had total assets of EUR636.9 billion at end September 2008. For the first nine months of 2008, the group reported a net loss, group share, of EUR723 million, down from a net income of EUR1.9 billion during the same period in 2007. ========================== C Z E C H R E P U B L I C ========================== BOHEMIA CRYSTALEX: Declared Insolvent by Prague Municipal Court --------------------------------------------------------------- The Municipal Court in Prague declared Czech glass company Bohemia Crystalex Trading (BCT) insolvent Friday last week, CTK reports citing the website of the insolvency register. Creditors have 30 days to submit their claims, the report discloses. A review of the claims and a meeting of creditors will take place on March 16, when solutions to the insolvency are also very likely to be decided upon. However, the report notes owners have been suggesting bankruptcy as a solution since the beginning of the insolvency proceedings. The report recalls BCT and its subsidiaries have been in the insolvency proceedings since September 22 due to a lack of operating capital. According to the report, BCT, which employed around 5,000 staff, owes CZK2.7 billion to a consortium of banks. It made contracts worth CZK5.5 billion in 2007. Factors contributing to the company's financial woes include the pressure of cheap Asian competition, the strong Czech crown and the economic crisis, the report states. The report recounts BCT and its units Crystalex Novy Bor and Sklarny Kavalier obtained moratorium from the court. However, the moratorium, which made it possible for the companies to continue producing, expired at the end of last year. Crystalex, the report relates, shut down production a week ago and announced a layoff of 1,631 staff to the employment offices as it has no money to finance production or to pay wages after creditor banks have withdrawn all cash at the end of last year. Kavalier meanwhile is still producing, although it is also insolvent, the report says. The report adds BCT's two other plants, Sklo Bohemia Svetla nad Sazavou and Sklarny Bohemia Podebrady, had already shut down production in September last year. As reported in the TCR-Europe on Oct. 6, 2008, Citibank Europe, a creditor of Sklo Bohemia and Sklarny Bohemia, already asked a court to appoint interim receivers for the companies and issue an injunction that would prevent owners from handling the firms' assets. =========== F R A N C E =========== EDF: Fitch Affirms Rating on FCC Minotaure Class C Notes at BB --------------------------------------------------------------- Fitch Ratings has affirmed nine tranches of four French RMBS transactions originated by Electricite de France, Gaz de France and their subsidiaries, despite the downgrade of EDF's Long-term Issuer Default Rating to 'A+' from 'AA-' (AA minus) and it's Short-term IDR to 'F1' from 'F1+' on January 7, 2009. The notes issued through Electra 1, FCC Minotaure Compartment 2004-1, Loggias 2001-1 and Loggias 2003-1 are backed by residential mortgage loans granted to the employees of EDF and GDF. All borrowers are permanent EDF and GDF staff members and have been with the company for at least a year. Loan installments are deducted from the salaries of employees and carry a risk of fallback in payments due to death, a temporary or permanent disability of a borrower, as well as over-indebtedness, bereavement and/or change in family status. Borrowers who decide to leave EDF or GDF are required to repay their mortgage loans in full. As of November 2008, the levels of outstanding defaulted mortgage loans (defined as loans that are at least six months in arrears) were extremely low, ranging from 0.02% (FCC Minotaure Compartment 2004-1) to 0.82% (Electra 1). The cumulative net losses in the reviewed transactions have also remained at low levels. The highest cumulative net losses were reported in Electra 1 at 1.02% as of November 2008. Based on the performance to date, with loss levels remaining considerably lower than Fitch had originally expected for the transactions, stable credit enhancement levels and sufficient excess spread, Fitch has affirmed the transactions' current ratings. The rating actions are: Electra 1: -- Class A3 (ISIN FR0000504219): affirmed at 'AAA'; Outlook Stable -- Class A4 (ISIN FR0000504227): affirmed at 'AAA'; Outlook Stable FCC Minotaure Compartment 2004-1: -- Class A (ISIN FR0010302687): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN FR0010302794): affirmed at 'A'; Outlook Stable -- Class C (ISIN FR0010302802): affirmed at 'BB'; Outlook Stable Loggias 2001-1: -- Class A (ISIN FR0000488462): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN FR0000488470): affirmed at 'A'; Outlook Stable Loggias 2003-1: -- Class A (ISIN FR0010029231): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN FR0010029256): affirmed at 'A'; Outlook Stable A joint department between EDF and GDF, the Division Accesision a la Properiete, is responsible for servicing the mortgage loans used as collateral in these transactions. ============= G E R M A N Y ============= BOGNER FLIESENSTUDIO: Claims Registration Period Ends March 25 -------------------------------------------------------------- Creditors of Bogner Fliesenstudio GmbH have until March 25, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 15, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wiesbaden E 36 A Third Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Harald Silz Adolfsallee 24 65185 Wiesbaden Germany Tel: 0611-150 40 Fax: 0611-301 774 The District Court opened bankruptcy proceedings against the company on Dec. 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bogner Fliesenstudio GmbH Attn: Monika Lautner, Manager Am Wolfsfeld 41 65191 Wiesbaden Germany CLARIN-CHEMIE GMBH: Claims Registration Period Ends Feb. 9 ---------------------------------------------------------- Creditors of CLARIN-Chemie GmbH have until Feb. 9, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on March 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Leipzig Hall 056 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Axel Roth Dittrichring 18-20 04109 Leipzig Germany Tel: 0341/1493105 Fax: 0341/1493111 The District Court opened bankruptcy proceedings against the company on Jan. 6, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CLARIN-Chemie GmbH Attn: Gisbert Weiherer, Manager Naumburger Strasse 10 04229 Leipzig Germany EWS ELEKTROTECHNIK: Claims Registration Period Ends February 6 -------------------------------------------------------------- Creditors of EWS Elektrotechnik GmbH have until Feb. 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on March 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Sven Bader Carl-Grueber-Weg 14 42853 Remscheid Germany Tel: 02191/421010 Fax: 02191/421070 The District Court opened bankruptcy proceedings against the company on Jan. 6, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EWS Elektrotechnik GmbH Derken 4 42327 Wuppertal Germany Attn: Hartmut Roebke, Manager Bergisch Born 134 42897 Remscheid Germany FORD MOTOR: Mitec Files Breach of Contract Suit ----------------------------------------------- Mitec Automotive AG has filed a suit against Ford Motor Co. at the county court in Meiningen, Germany for breach of contract, Michael Knauer at Automotive News Europe reports. The report relates that according to Mitec Group CEO Michael Militzer, in 2007, Ford broke a long-term sourcing contract with a Mitec subsidiary, Mitec engine.tec GmbH. Mr. Militzer said the automaker moved sourcing of the component in question to North America from Europe, the report discloses. Mr. Militzer claimed Ford rejected an engine part Mitec developed for the automaker for use in the Mazda6 because of quality issues. Mitec, the report recalls, found the same part being built for Ford by Canadian supplier Linamar Corp. in Mexico. Mr. Militzer told Automotive News Europe Ford acted in an "arrogant way". Citing Mr. Militzer, the report says, Mitec is initially seeking EUR500,000, or about US$665,153 in claims. He put the damages to his company at EUR20 million, or US$26.6 million at current exchange rates, the report states. However, a Ford spokesman declined to comment on the suit as it "involves a pending proceeding", the report notes. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. JUEPO GMBH: Claims Registration Period Ends February 29 ------------------------------------------------------- Creditors of JUEPO GmbH have until Feb. 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 6, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Aachen Room D 1.409 Adalbertsteinweg 92 52070 Aachen Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Rolf-Dieter Moenning Juelicher Strasse 116 52070 Aachen Germany Tel: 0241/94618-0 Fax: 0241/533562 The District Court opened bankruptcy proceedings against the company on Jan. 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: JUEPO GmbH Attn: Dr. Achim Kampker, Manager Karl-Friedrich-Str. 60 52072 Aachen Germany MISPA GMBH: Claims Registration Period Ends February 13 ------------------------------------------------------- Creditors of Mispa GmbH have until Feb. 13, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on March 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Kiel Hall 3 Deliusstr. 22 Kiel Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Wilhelm Salim Khan Durani Sell Speicher/Wall 55 24103 Kiel Germany Tel: 0431/600530 Fax: 0431/6005360 The District Court opened bankruptcy proceedings against the company on Jan. 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mispa GmbH Attn: Michael Speth, Manager Maybachstrasse 25 24113 Kiel Germany ============= I R E L A N D ============= ANGLO IRISH: Moody's Downgrades Financial Strength Rating to 'E+' ----------------------------------------------------------------- Moody's Investors Service had downgraded the long-term bank deposit rating and senior unsecured debt rating of Anglo Irish Bank Corporation to A2 from A1, concluding the review on these ratings initiated in October 2008. The bank's Prime-1 short-term bank deposit and debt ratings were affirmed. Anglo Irish Bank's BFSR was downgraded to E+ (mapping to a baseline credit assessment of B2), from C+ (baseline credit assessment equivalent of A2), on review for possible downgrade. The bank's Dated Subordinated debt was downgraded to A3 from A2. The Undated Subordinated notes were downgraded to B3 from A2, the 7.625% Tier One Non-Innovative Capital Securities and the 8.5325% Guaranteed Step-up Callable Perpetual Capital Securities, both issued by subsidiaries of the bank, were downgraded to B3 from A3. The Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities issued out of Anglo Irish Capital UK 2 and Anglo Irish Capital UK 3 (the guaranteed non-cumulative preferred stock) were downgraded to Caa1 from A3, and the GBP300 million non-cumulative preference shares were downgraded to C from A3. The outlook on all these ratings is negative. The backed-Aaa ratings assigned to the bank's senior debt maturing prior to September 29, 2010 that is covered by the Irish Government guarantee are not affected by these actions. These rating actions follow the announcement by the Ministry of Finance on January 15 2009 that the Irish Government will enact legislation to take the bank into public ownership. Moody's said that the key considerations for this rating action within the context of a nationalized entity are a) Moody's assumption that the government ownership will be temporary, b) an assumption of very high support throughout the period of public ownership, c) the bank's high exposure to the troubled Irish property and construction market, d) a heightened uncertainty surrounding the long-term, unsupported viability of the bank's business model given the damage caused by recent events and the concentrated focus on commercial real estate, and e) the legal status of the GBP300 million non-cumulative preference shares vis- a-vis other Tier-1 instruments. The bank's E+ BFSR (mapping to a B2 baseline credit assessment) reflects the rating agency's view that it will be very challenging to effect long lasting improvements to the bank's business model that can ensure a long-term viability in the absence of external support and that as a result of the corporate governance issues, the ongoing difficult markets and the specific challenges expected to affect the commercial property market (all of which contributed to the nationalization) the bank's franchise may be severely impacted. Moody's commented that the downgrade of the BFSR also reflects the ongoing concerns over the future performance of the loan book, the bank's relatively light capital levels, especially in light of the fact that the proposed EUR1.5 billion government capital injection will now not be taking place, and the likely difficulties the bank would have funding on a stand-alone basis (i.e. absent parental or other external support). The negative outlook also reflects Moody's view that the bank may be placed into a run-off situation should the government fail to establish a viable and sustainable strategy. Commenting on the rationale behind the downgrade of the debt and deposit ratings to A2, Moody's noted that the starting point is the E+ BFSR which when combined with a fully supported probability of systemic support, leads to a rating of A2 for senior debt and bank deposits. The difference to the government's own Aaa debt rating and its Aaa local currency country ceiling stems from Moody's expectation that the bank will only be in temporary public ownership, pending final approval by the Irish Parliament which is expected in the coming days, and the resulting greater uncertainty for senior unsecured bondholders as compared to investors in government debt. Moody's also noted that the government will need to ensure that the nationalization of the bank and the structure and strategy while in public ownership are in accordance with EU state aid rules and expects that a detailed plan will need to be lodged with and approved by the EU Commission. The downgrade of the bank's GBP300 million non-cumulative preference shares to C reflects Moody's understanding that the Irish government will nationalize these instruments, in addition to the common equity. The rating agency added that it understands that there are certain circumstances where the preference shareholders can become minority shareholders and this is why these instruments are also being taken into public ownership. Any compensation to holders of the preference shares will be calculated by a government-appointed valuation agent in due course. The rating of C reflects the high severity of loss expected for investors into these securities. The downgrade of the bank's undated subordinated debt to B3 reflects the fact that in a wind-up of the bank they rank junior to dated subordinated debt, and also that the loss given default on these instruments is expected to be very high. The downgrade of the cumulative preferred stock and the backed non-cumulative preferred stock, to B3 and Caa1 respectively, is in line with the downgrade of the bank's BFSR. Consistent with Moody's notching guidelines, the ratings of junior securities for a bank with a BFSR in the E category would be close to that of the BFSR implied rating. Moody's further added that the rating differential reflects the fact that the likelihood of coupon deferrals and loss severity on the non-cumulative instruments is higher than that on the cumulative instruments. These instruments are classed as debt instruments of the bank and not as preference shares, and therefore these instruments have not been treated in line with preference shares which Moody's expects to be nationalized. The bank's dated subordinated debt remains one notch below the senior debt rating at A3 reflecting the expectation of continued support for this class of instrument. Moody's notes that under the two-year guarantee established by the Irish Government in 2008 dated subordinated debt is guaranteed which Moody's take as evidence for the likely support for this class of debt. The last rating action on Anglo Irish Bank was on October 17, 2008 when the BFSR and the long-term ratings were placed on review for possible downgrade. Moody's announced that the ratings remained on review for possible downgrade on December 22, 2008 following the announcement of the proposed capital injection into the bank by the Irish government. Anglo-Irish Bank Corporation, headquartered in Dublin, Ireland, had total assets of EUR101.3 billion at end-September 2008. Downgrades: Issuer: Anglo Irish Asset Finance PLC -- Preferred Stock Preferred Stock, Downgraded to B3 from A3 Issuer: Anglo Irish Bank Corporation Plc -- Bank Financial Strength Rating, Downgraded to E+ from C+ -- Issuer Rating, Downgraded to A2 from A1 -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3 from A2 -- Multiple Seniority Medium-Term Note Program, Downgraded to a range of B3 to A2 from a range of A2 to A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to a range of B3 to A2 from a range of A2 to A1 -- Preference Stock Preference Stock, Downgraded to C from A3 -- Subordinate Regular Bond/Debenture, Downgraded to A3 from A2 -- Senior Unsecured Medium-Term Note Program, Downgraded to A2 from A1 -- Senior Unsecured Regular Bond/Debenture, Downgraded to A2 from A1 -- Senior Unsecured Deposit Rating, Downgraded to A2 from A1 Issuer: Anglo Irish Capital UK (2) LP -- Preferred Stock Preferred Stock, Downgraded to Caa1 from A3 Issuer: Anglo Irish Capital UK (3) LP -- Preferred Stock Preferred Stock, Downgraded to Caa1 from A3 Outlook Actions: Issuer: Anglo Irish Asset Finance PLC -- Outlook, Changed To Negative From Rating Under Review Issuer: Anglo Irish Bank Corporation Plc -- Outlook, Changed To Negative From Rating Under Review Issuer: Anglo Irish Capital UK (2) LP -- Outlook, Changed To Negative From Rating Under Review Issuer: Anglo Irish Capital UK (3) LP -- Outlook, Changed To Negative From Stable CHARTBUSTERS: Two Creditors Oppose Court Protection --------------------------------------------------- The Irish Times reports that Mr Justice Peter Kelly was told two creditors of Chartbusters are opposed to having an examiner confirmed for the company. The report relates Lombard Ireland and Winchurch Investments Ltd had filed affidavits Monday outlining their reasons for opposing the continuation of court protection for Chartbusters, while, other creditors, including the Revenue and ACC bank, adopted a neutral position, the report notes. Judge Kelly, the report discloses, adjourned both the application for examinership and a winding up application brought by Winchurch to Thursday, and would extend court protection pending that hearing. According to the report, Gary McCarthy, counsel for the company and six related firms including tanning and weight-loss outlets, said he needed time to reply to the affidavits. On Jan. 9, 2009, the TCR-Europe, citing The Irish Times, reported Mr Justice John Edwards appointed Neill Hughes, of Hughes Blake Chartered Accountants, as interim examiner to Chartbusters, which operates 37 home entertainment stores. The report recalled Mr. McCarthy told Judge Edwards in the High Court that Chartbusters racked up debts of about EUR20 million. Citing Mr. McCarthy, the report revealed the company owed EUR12 million to Bank of Scotland (Ireland), KBC Bank, Lombard Ireland and Friends First Finance Ltd., while landlords were being owed EUR2 million. ChartBusters' director Richard Murphy, as cited by the report, said the company was currently unable to repay the interest due on the loans and was servicing about EUR900,000 a year in leasing payments. The report stated group turnover had dropped to EUR12.2 million for the period to April 30, 2008, and costs, in particular rent, had eroded profits. According to the report, Mr. Murphy in an independent report said that the company and related firms would have a reasonable prospect of survival as a going concern with new investment, closure of underperforming stores, negotiations with landlords and acceptance of an appropriate scheme of arrangement by the creditors under the protection of the High Court. ========= I T A L Y ========= CHRYSLER LLC: Fiat Mulls Acquiring 35% Stake in Chrysler -------------------------------------------------------- The Associated Press reports that Fiat SpA is in talks with Chrysler LLC about acquiring a stake in the U.S. car maker and forming a partnership to let the Italian auto maker build and sell its small cars in the U.S. Citing people familiar with the matter, Stacy Meichtry and John Stoll relate that Fiat is likely to take a 35% stake in Chrysler by the middle of the year. According to the report, the sources said that Fiat would also have the option of taking 55% of Chrysler over time. Sources said that Fiat would share its engine and transmission technology with Chrysler, which would let the U.S. automaker introduce new, low-emission small-car models to its fleet, WSJ states. Citing the sources, WSJ says that Fiat would build and sell its own small cars in the U.S., possibly through Chrysler's U.S. dealership network. Cost savings under the partnership would be in the US$3 billion to US$4 billion range, WSJ reports, citing the sources. According to WSJ, most analysts believe that Chrysler has little hope of surviving as a stand-alone company. Analysts, says the report, also doubted that Fiat has the scale to survive as an independent manufacturer of small cars, which produce relatively thin margins, making it hard to make money in the high-cost labor market in Europe. WSJ reports that the partnership will need the approval of Fiat's founding family, the Agnellis, which holds a 30% controlling stake in Fiat. The Agnellis family, according to the report, has said in the past that Fiat needed to collaborate with a larger rival to stay competitive. Citing a person familiar with the matter, the report states that Fiat's board would discuss the potential deal with Chrysler on Thursday, when it would approve third-quarter results. Sources said that Chrysler's owner, Cerberus Capital Management LP, wants to retain an interest in the automaker, according to WSJ. Chrysler executives also had discussions with Nissan Motor Co. over a possible alliance, WSJ relates, citing a person familiar the matter. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Dec. 3, 2008, Dominion Bond Rating Service downgraded the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. As reported in the TCR on Dec. 3, 2008, Dominion Bond Rating Service downgraded on Nov. 20, 2008, the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. =================== K A Z A K H S T A N =================== AMT OIL: Proof of Claim Deadline Slated for February 26 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP AMT Oil insolvent. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan ARKAU LLP: Creditors Must File Claims by February 26 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Arkau insolvent on November 26, 2008. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Maulenov Str. 93 Almaty Kazakhstan Tel: 8 (7272) 67-63-72 KAZAKHGOLD GROUP: Fitch Junks Issuer Default Rating from 'B' ------------------------------------------------------------ Fitch Ratings has downgraded KazakhGold Group Limited's Long-term Issuer Default Rating to 'CCC' from 'B' and downgraded KazakhGold's senior unsecured rating to 'CCC'/'RR4' from 'B'/'RR4'. Both ratings remain on Rating Watch Negative. The downgrade follows KazakhGold's December 29, 2008 announcement saying that its FY08 production had fallen substantially short of forecasts and will be materially lower than 2007 levels. The production slump was principally caused by inadequate access to capital during the year. As a result, KazakhGold's cash balance deteriorated towards the end of 2008 and in the absence of any immediate financing arrangement in Q109, the company might not be able to operate as a going concern. Fitch expects to resolve the RWN following a meeting with management to discuss the issuer's strategy going forward. The agency is also closely monitoring the progress of KazakhGold's potential acquisition by Polyus Gold and its impact on KazakhGold's credit profile. Further negative rating actions remain a possibility should the transaction fail or should KazakhGold not secure alternative sources of funding to improve its current financial position. The agency also notes that KazakhGold's corporate transparency remains an issue. On a positive note, acquisition negotiations with Polyus Gold for 50.1% of KazakhGold's share capital are progressing. A revised Partial Offer was issued on December 30, 2008 which values KazakhGold at US$284 million and which represents a 19% premium to KazakhGold's current market capitalization. The revised transaction is all-share, while the original offer was 30% cash and 70% share-based. The revised offer also assumes US$100 million of equity capital would be raised immediately and would be fully underwritten by Polyus Gold. The new capital raising would be intended to strengthen KazakhGold's balance sheet and enable the company to meet its existing development plans. Fitch notes that Polyus Gold's seven pre-conditions need to be met for the acquisition to succeed. The most critical of these, in Fitch's opinion, is to obtain a waiver from holders of KazakhGold's senior notes in respect of their right to require KazakhGold to repurchase the notes at a purchase price equal to 101% of the principal amount of the notes on a change of control of KazakhGold. If approved, the amendments will also enable KazakhGold to raise additional debt from Polyus Gold of up to US$50 million. The companies expect all pre-conditions to be met by February 20, 2009. The controlling Assaubayev family reportedly plans to sell its entire stake of approximately 41% of the outstanding shares of KazakhGold, although Polyus Gold does not seem keen to own more than 50.1% of the company. Fitch notes that if the acquisition succeeds, Polyus Gold's much larger business profile and stronger balance sheet may, potentially, enhance KazakhGold's credit profile. MAILY KENT: Claims Filing Period Ends February 27 ------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Maily Kent Agro MTS insolvent. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan PROM AUTO: Creditors' Proofs of Claim Due on February 26 --------------------------------------------------------- LLP Prom Auto Service has declared insolvency. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: LLP Prom Auto Service Micro District 4, 29-11 Almaty Astana Kazakhstan RMZ-LANDSHAFT LLP: Claims Registration Period Ends February 26 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP RMZ-Landshaft insolvent. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan WEST-STORY LLP: Proof of Claim Deadline Slated for February 27 -------------------------------------------------------------- LLP Construction Company West-Stroy has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Construction Company West-Stroy Plot 2-3 Yntymak Shymkent South Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== STYLE STROY: Creditors Must File Claims by February 26 ------------------------------------------------------ LLC Construction Company Style Stroy has declared insolvency. Creditors have until Feb. 26, 2009, to submit written proofs of claim. The company can be reached at: (0-555) 96-05-95 =========== L A T V I A =========== PAREX BANKA: FCMC Imposes Restriction on Loan Issuance ------------------------------------------------------ The Baltic Course reported that a limited number of pledges have been issued or received by the Parex banka despite its nationalization. According to the report, the small number of pledges can be explained by the restrictions imposed by the Financial and Capital Market Commission (FCMC) on the bank for issuing loans. Citing FCMC spokeswoman Ieva Upleja, the report disclosed this restriction is still effective. However, Maija Celmina, advisor to the Parex banka board chairman, said "Despite the restrictions imposed on the bank, it has not stopped activities regarding previously-signed agreements, including issuing new commercial pledges and providing other financial support for deals, which were signed earlier", the report noted. The report recalled on December 18 last year the bank issued a loan to Global Fashion Group a few days after the company was declared insolvent by a court's decision. "The bank, the same as any other creditor, has to take into consideration the possible consequences of bankruptcy," Mr. Celmina was quoted by the report as saying. Founded in May 1992, JSC Parex Banka -- http://www.parexgroup.com/-- is a commercial bank with assets exceeding 4.46 billion. It offers its clients integrated services in areas such as lending, payment cards, leasing, asset management and securities trading. It has more than 70 branches, customer service centers and settlement group, or nearly all regions of Latvia and the major cities. Currently, bank branches and customer service centers in Latvia employs more than 2,600 people. * * * As reported in the TCR-Europe on Dec. 9, 2008, Moody's Investors Service downgraded the bank financial strength rating of Parex Bank to E from E+. The outlook on this rating is now stable. Moody's also downgraded the bank's local and foreign As reported in the TCR-Europe on Dec. 5, 2008, Fitch Ratings downgraded Latvia-based Parex Banka's Long-term Issuer Default Rating to 'RD' from 'BB', Short-term IDR to 'RD' from 'B', and Support rating to '5' from '3'. Parex's Support Rating Floor was changed to 'No Floor' from 'BB' and Individual rating was affirmed at 'F'. In addition, Fitch downgraded the senior unsecured ratings to 'CC' from 'BB' and assigned Recovery Rating 'RR4'. Fitch removed Long-term IDR and senior unsecured ratings from Rating Watch Negative. ================= L I T H U A N I A ================= FLYLAL: Suspends Operations, May File for Bankruptcy ---------------------------------------------------- Reuters reports that Lithuania-based airline flyLAL said Monday it was considering filing for bankruptcy after an acquisition deal with Swiss Capital Holding failed to materialize. "We wanted to continue our activity until the very last moment, but the buyer failed to execute the transfer by the deadline and we decided to cease operations," Gintare Rimkuviene, a spokeswoman for the airline, was quoted by Reuters as saying. "We have not filed for bankruptcy yet, but that option is possible, it is being discussed." According to The Associated Press, airline officials said it terminated a preliminary agreement with the Swiss company after it failed to pay US$1 million (EUR756,000) that would have cleared flyLAL's debts and potentially saved it from bankruptcy. The airline, Reuters discloses, had debts of LTL89 million (US$3.4 million) at the end of 2008. It has no planes of its own, Reuters notes. Reuters recalls the airline, which employs 360 people, was privatized in 2005 by local businessmen. Citing Vytautas Kaikaris, flyLAL's chief executive, The Associated Press relates the airline decided to suspend its operations Saturday "to stem further losses and prevent further deterioration in creditors' situation". The last flight operated by flyLAL landed on Friday, Reuters states. ===================== N E T H E R L A N D S ===================== LYONDELL CHEMICAL: U.S. Trustee Forms 7-Member Creditors Panel -------------------------------------------------------------- Pursuant to Section 1102 of the Bankruptcy Code, Diana G. Adams, United States Trustee for Region 2, appointed seven creditors to serve as members of the Official Committee of Unsecured Creditors in Lyondell Chemical Company and its 78 debtor-affiliates' Chapter 11 cases: (1) Wilmington Trust FSB, as Successor Trustee Attn: Patrick Healy, Vice President Rodney Square North 1100 North Market Street Wilmington, DE 19890-1600 Tel. No. (302) 636-6391 (2) Law Debenture Trust of New York Attn: Robert L. Bice II, Senior Vice President 400 Madison Avenue New York, NY 10017 Tel. No. (212) 750-6474 (3) Pension Benefit Guaranty Corporation Attn: Jennifer Messina 1200 K. Street N.W. - Suite 2000 Washington, DC 20004 Tel. No.(202) 750-6474 (4) BASF Corporation Attn: Peter Argiriou, Credit Manager 100 Campus Drive Florham Park, NJ 07932 Tel. No. (713) 759-3092 (5) Air Liquide Large Industries U.S.LP c/o Air Liquide USA, LLC Attn: Kevin Feeney, Esq., Secretary of Air Liquide 2700 Post Oak Blvd. Houston, TX 77056 Tel. No. (713) 624-8386 (6) Veolia ES Industrial Services Attn: Tim Wood, Vice President Sales & Marketing 2525 South Shore, Suite 410 League City, TX 72573 Tel. No.(713) 307-7138 (7) United Steel Workers Attn: David R. Jury, Associate General Counsel Five Gateway Center - Room 807 Pittsburgh, PA 15222 Tel. No. (412) 562-2546 Gerald A. O'Brien, vice president of Lyondell Chemical Company, disclosed in a filing with the Securities and Exchange Commission that on January 16, 2009, the company held an organizational meeting for unsecured creditors wherein officers of Lyondell Chemical Company made a presentation, a full-text copy of which is available for free at http://ResearchArchives.com/t/s?382a About LyondellBasell Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries -- http://www.lyondellbasell.com/-- the world's third largest independent chemical company. Lyondellbasell produces polypropylene and advanced polyolefins products, is a leading supplier of polyethylene, and a global leader in the development and licensing of polypropylene and polyethylene processes and related catalyst sales. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. About a year after completing the merger, LyondellBasell Industries' U.S. operations and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on January 6, 2009, to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D. N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities, including Equistar Chemicals, LP, Lyondell Chemical Company, Millennium Chemicals Inc., and Wyatt Industries, Inc., filed for Chapter 11. LyondellBasell is not part of the bankruptcy filing. LyondellBasell's non-U.S. operating entities are also not included in the Chapter 11 filing. The Hon. Robert E. Gerber presides over the case. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, serves as the Debtors' bankruptcy counsel. Evercore Partners serves as financial advisors, and Alix Partners and its subsidiary AP Services LLC, serves as restructuring advisors. AlixPartners' Kevin M. McShea acts as the Debtors' Chief Restructuring Officer. Clifford Chance LLP serves as restructuring advisors to the European entities. Lyondell Chemical estimated that consolidated assets total US$27.12 billion and debts total US$19.34 billion as of the bankruptcy filing date. Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Lyondell Chemical Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LYONDELL CHEMICAL: Equistar Seeks US$28MM Payment from Solutia -------------------------------------------------------------- Lyondell Chemical Co's affiliate Equistar Chemicals, LP and Solutia Inc. were parties to an Amended and Restated Chemical Grade Propylene Sales Agreement contract wherein Equistar sold certain chemical grade propylene to Solutia. Since October 10, 2008, the Debtor has sent 10 invoices to Solutia. Under the Agreement, Solutia must pay for propylene within 30 days of each invoice date. Proposed counsel for the Debtors, Howard Hawkins, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, tells the U.S. Bankruptcy Court for the Southern District of New York that Solutia has never disputed any of the invoices, which are due and owing for US$28,928,488, yet it has refused to pay the amounts. Mr. Hawkins argues that the US$28,928,488 is a matured debt under Section 542(b) of the Bankruptcy Code and Solutia, thus, violated Section 542(b) when it did not pay the matured debt to the Debtor. Against this backdrop, Mr. Hawkins says, the Debtor is entitled to a judgment: (i) declaring that the Debtor is owed a matured debt for US$28,928,488 pursuant to Section 542(b), and Solutia violated Section 542(b) because it has not paid the US$28,928,488, (ii) directing Solutia to turn over to the Debtor US$28,928,488, and (iii) awarding the Debtor its costs and expenses, including attorneys' fees incurred in connection with the Debtor's efforts to compel Solutia's compliance with its obligations. Moreover, the Agreement is a valid, binding and enforceable contract between the Debtor and Solutia. Mr. Hawkins attests that the Debtor has performed its obligations under the Agreement. Accordingly, Solutia's failure and refusal to remit to the Debtor the amounts due to under Agreement constitute a breach of contract. Mr. Hawkins further contends that Solutia violated Sections 362(a)(3) and (a)(7) of the Bankruptcy Code by failing to pay the Debtor, and withholding payment of the US$28,928,488. The Debtor asks the Court to issue judgment: (a) declaring that Solutia owes a matured debt to the Debtor for US$28,928,488; (b) awarding damages for US$28,928,488 resulting from Solutia's breach of the Agreement; (c) directing Solutia to pay US$28,928,488; (d) declaring that Solutia's continued failure to pay the matured debt constitutes a violation of Sections 362(a) and 542(b); and (e) awarding the Debtor its costs, including attorney's fees, incurred in connection with its efforts to compel Solutia's compliance under the Bankruptcy Code. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (NYSE: SOA) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. Solutia was represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC was the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represented the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provided the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., was represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. Solutia's US$2.05 billion exit financing facility was funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. The exit financing is being used to pay certain creditors, and for ongoing operations. Bankruptcy Creditors' Service, Inc., publishes Solutia Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Solutia Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) * * * Standard & Poor's Ratings Services said its ratings on Solutia Inc. (B+/Stable/--) will not change as a result of the company's recent announcement of a public offering of common shares. About LyondellBasell Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries -- http://www.lyondellbasell.com/-- the world's third largest independent chemical company. Lyondellbasell produces polypropylene and advanced polyolefins products, is a leading supplier of polyethylene, and a global leader in the development and licensing of polypropylene and polyethylene processes and related catalyst sales. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. About a year after completing the merger, LyondellBasell Industries' U.S. operations and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on January 6, 2009, to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D. N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities, including Equistar Chemicals, LP, Lyondell Chemical Company, Millennium Chemicals Inc., and Wyatt Industries, Inc., filed for Chapter 11. LyondellBasell is not part of the bankruptcy filing. LyondellBasell's non-U.S. operating entities are also not included in the Chapter 11 filing. The Hon. Robert E. Gerber presides over the case. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, serves as the Debtors' bankruptcy counsel. Evercore Partners serves as financial advisors, and Alix Partners and its subsidiary AP Services LLC, serves as restructuring advisors. AlixPartners' Kevin M. McShea acts as the Debtors' Chief Restructuring Officer. Clifford Chance LLP serves as restructuring advisors to the European entities. Lyondell Chemical estimated that consolidated assets totalUS$27.12 billion and debts totalUS$19.34 billion as of the bankruptcy filing date. Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Lyondell Chemical Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) =========== R U S S I A =========== CHERNOMORETS-OIL LLC: Creditors Must File Claims by February 16 --------------------------------------------------------------- Creditors of LLC Chernomorets-Oil (TIN 2315081938) have until Feb. 16, 2009, to submit proofs of claims to: G. Pashentsev Insolvency Manager Office 1008A Krasnaya Str. 108 350020 Krasnodar Russia The Arbitration Court of LLC Chernomorets-Oil will convene on Feb. 17, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?-32�20343/2008�1/1314. The Debtor can be reached at: LLC Chernomorets-Oil Novorossiysk Russia GEO-KOM-STROY LLC: Creditors Must File Claims by March 16 --------------------------------------------------------- Creditors of LLC Geo-Kom-Stroy (Construction) have until March 16, 2009, to submit proofs of claims to: G. Mekhedova Insolvency Manager Inzhenernaya Str. 42/55 676456 Svobodnuy Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?04�2338\08�10\208B. The Debtor can be reached at: LLC Geo-Kom-Stroy Office 302 Gorkogo Str. 240/3 Blagoveshchensk Amurskaya Russia LEDYANOY DOM LLC: Creditors Must File Claims by February 16 ----------------------------------------------------------- Creditors of LLC Ledyanoy Dom (Ice-cream Production) have until Feb. 16, 2009, to submit proofs of claims to: A. Savin Temporary Insolvency Manager Post User Box 11 214018 Smolensk Russia The Arbitration Court of Smolensk commenced bankruptcy supervision procedure. The case is docketed under Case No. ?-62�5895. The Debtor can be reached at: LLC Ledyanoy Dom Oktyabrya Str. 46 Smolensk Russia NOVOLIPETSK STEEL: Fitch Affirms Issuer Default Rating at 'BB+' --------------------------------------------------------------- Fitch Ratings has affirmed Russia-based OJSC Novolipetsk Steel's Long-term Issue Default Rating at 'BB+' and National Long-term rating at 'AA(rus)'. The Outlooks on both ratings are Stable. Fitch has also affirmed NLMK's Short-term IDR at 'B'. The current ratings reflect Fitch's opinion that despite the current economic recession and metal and mining industry downturn, NLMK's credit profile will remain within the agency's parameters for the current rating level. The ratings also continue to reflect NLMK's scale as an international steel producer with significant market shares both domestically and globally (31% in the domestic machine building industry, 30% in the domestic construction industry, 70% in the domestic power equipment manufacturing market and 20% in the global transformer steel market). The company is self-sufficient in iron-ore and coke and has highly efficient steel operations. NLMK is one of the lowest cost producers in the world with an average cash cost of US$329 per tonne of slabs in 9m08. As a result, the company has historically enjoyed an EBITDA per tonne of crude steel 30%-40% higher than its main Russian peers. The company also has geographically diversified revenues with export sales at 59% of total revenue. Among Fitch-rated CIS metal and mining companies, NLMK has had one of the highest spends on asset modernization and reconstruction by capital expenditures per tonne of crude steel and capex per US$1 sales in recent years. The company has a history of maintaining a conservative financial policy. At end-Q308, NLMK had total consolidated debt of US$3.3 billion including US$1.3 billion of short-term loans. Of the total debt, 64% is secured. During 2008 NLMK increased borrowings by drawing a syndicated 5 years US$1.6 billion PXF loan. Indebtedness includes US$1.5 billion of debt acquired as a result of the Maxi Group acquisition in 2007. While several covenants for Maxi Group borrowings were breached as at FY2007, NLMK took measures to avoid early redemption of US$0.9 billion of debt by successfully renegotiating covenants with lenders. In addition US$0.4 billion of Maxi Group loans were restructured in Q308 with more favorable terms. Fitch estimates NLMK's FYE08 net debt/EBITDA at 0.2x versus 0.3x- 1.4x for key Russian peers rated by Fitch. On the assumption however that market conditions remain weak throughout 2009 and production volumes decline substantially, Fitch estimates that NLMK's net leverage will peak at 1.3-1.4x in FY09-FY10. Between 2008-2012 Fitch estimates that company's net leverage will average between 0.8x-1.0x. Fitch notes that even though almost half of NLMK's debt is denominated in foreign currency (US$ and EUR) the risk of rouble devaluation is mitigated by a number of factors. NLMK has a significant share of its sales in export, most of its foreign currency-denominated debt facilities are long-term (the largest part matures in five years) and almost 90% of its costs are denominated in RUB. At the same time, Fitch notes that NLMK will not be able to fully realize the benefits of RUB depreciation, because NLMK presold in 2008 a significant portion of its FY09 export proceeds as part of its currency hedging strategy. Fitch expects NLMK's FY09 export revenues to be US$3.0 billion-3.5 billion versus maturing foreign currency-denominated debt of US$0.4 billion-0.5 billion. The Stable Outlook reflects NLMK's satisfactory liquidity position at 9M08 and forecasted cash flow versus expected charges including debt maturities and reduced capex. Fitch notes that the merger agreement for the acquisition of US-based tubes and hollow section producer, John Maneely Company, which was terminated by NLMK in November of 2008, is now the subject of litigation. Fitch further notes that the merger agreement relating to the acquisition of John Maneely Company contains various provisions relating to liability and damages in the event of termination and/or breach, including an overall cap on damages of US$529 million. For modeling purposes only, this maximum amount was included by Fitch in the amount of expected charges in Q408-9m09. The actual amount of damages, if any, will depend on the outcome of ongoing litigation. NLMK is Russia's fourth-largest vertically integrated iron and steel producer, accounting for 13% of the country's total production and it is the 30th largest steel maker in the world. In 9M08 the company increased production output by 29% on a year- on-year basis to 8.7mt due to the consolidation of Maxi Group (+1.6m tonnes of steel) and increase in capacity at the main Lipetsk plant (+0.3m tonnes of steel). SEVERSTROY 21: Creditors Must File Claims by February 16 -------------------------------------------------------- Creditors of LLC Severstroy 21 vek (Construction) have until Feb. 16, 2009, to submit proofs of claims to: Ye. Popova Temporary Insolvency Manager Post User Box 166 GVP 677999 Yakutsk Russia The Arbitration Court of Yakutia commenced bankruptcy supervision procedure. The case is docketed under Case No. A58�4543/08. The Debtor can be reached at: LLC Severstroy 21 vek Ilmenskaya Str. 48 Yakutsk Russia TANTAL-D-K CJSC: Creditors Must File Claims by February 16 ---------------------------------------------------------- Creditors of CJSC Tantal-D-K (Electronic Tubes Production) have until Feb. 16, 2009, to submit proofs of claims to: A. Baskakov Temporary Insolvency Manager Post User Box 14 410000 Saratov Russia The Arbitration Court of Saratov will convene at 2:30 p.m. on March 25, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?-57�23239/08�40. The Court is located at: The Arbitration Court of Saratov Department 10 Babushkin vvoz Str. 1 Saratov Russia The Debtor can be reached at: CJSC Tantal-D-K Prospect 50 let Oktyabrya 110a 410040 Saratov Russia TMK OAO: Shipments Up 5% in 2008 on IPSCO Asset Acquisition ----------------------------------------------------------- Reuters reports that OAO TMK's 2008 shipments increased 5% from 2007 following its acquisition of IPSCO's assets. Reuters notes that without the acquisition, shipments declined by 11 percent from 2007 as large pipeline projects were postponed and demand for industrial pipes dropped in the fourth quarter. TMK, Reuters recalls, agreed to pay US$1.2 billion for IPSCO's U.S. assets in March. On Nov. 20, 2008, the TCR-Europe reported that according to Reuters, TMK was in talks with state banks to refinance outstanding debt from its US$1.2 billion acquisition of IPSCO's U.S. assets. Vladimir Shmatovich, the steel pipe maker's deputy general director, as cited by Reuters, said TMK was in talks with with the top four or five Russian banks, although he did not name them. He also declined to specify how much the company was seeking in state loans, Reuters added. Reuters disclosed the company was also seeking to refinance EUR3 billion (US$109.4 million) of debt due in March 2009, and a US$300 million Eurobond due in September. As reported in the TCR-Europe on Dec. 5, 2008, Reuters, citing Vedomosti business daily, stated TMK requested around US$1 billion in state loans to refinance its foreign debt. Vedomosti said that according to an industry source, TMK's request was recognized as justified by the credit committee of state- owned bank VEB, Reuters related. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * OAO TMK continues to carry a Ba3 long-term corporate family and probability of default rating from Moody's with stable outlook. TMK also carries a B+ long-term foreign and short-term local issuer default ratings from Standard & Poor's with stable outlook. The ratings still apply to date. VIMPEL COMMUNICATIONS: S&P Affirms 'BB+' Corporate Credit Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its outlook on Russian telecoms operator Vimpel-Communications to negative from stable. At the same time, the 'BB+' long-term corporate credit ratings on VimpelCom, its related entities, and their respective issue ratings were affirmed. "The outlook revision reflects our concerns that the weakening economic conditions in Russia, coupled with the risk of further depreciation of the Russian ruble, could pose an increasing threat to the company's cash flow generation and liquidity position," said Standard & Poor's credit analyst Alexander Griaznov. As of Jan. 1, 2009, VimpelCom had significant financial debt outstanding of more than US$8 billion, with nearly half of this amount maturing in 2009 and 2010. In the current market conditions, VimpelCom's access to financial markets is limited, which explains the need for the company to use virtually all generated free cash flow for debt repayment. VimpelCom's current cash generation remains robust, however. For the 12 months ended Sept. 30, 2008, VimpelCom generated free operating cash flow of US$1.6 billion, while its funds from operations totaled US$3.2 billion for the same period. This, coupled with an expected major reduction in capital expenditures in 2009, should provide sufficient liquidity support to VimpelCom's liquidity profile. However, the weakening economic environment in Russia and CIS could lead to gradual reduction in usage and average revenues per user, although S&P does not expect a major downward trend in the very near term. Moreover, efficiency and various cost control measures should support profitability. The company generates almost all of its revenues in local currencies, while about 85% of its debt is in foreign currency. As the company does not fully hedge its foreign-exchange risk exposure, VimpelCom is dependent on exchange rate fluctuations. Further ruble depreciation would put additional pressure on the company's cash flows and would lead to weaker credit protection ratios. A scenario in which the ruble significantly fell to 40 to 1 or more is not built into the current rating and could prompt a downgrade. On Sept. 30, 2008, VimpelCom's short-term maturities of US$1.748 billion were not fully covered by cash of US$727 million. S&P could lower the rating if the company is unable to adequately manage its liquidity and/or take adequate cash flow protection measures. "To maintain the rating S&P expects VimpelCom to adequately adjust its capital spending, and focus on maximizing its FOCF in 2009," said Mr. Griaznov. "We also expect the company to avoid any opportunistic acquisitions, limit its international expansion, and keep shareholder distributions at a minimum." Ratings downside could result from negative trends in the Russian economy, including further ruble depreciation. * RUSSIA: Coface Puts Country Rating Under Negative Watch --------------------------------------------------------- Credit rating agency Coface places China and Russia under negative watch. "The credit crisis is now affecting two major emerging countries - Russia and China - despite the comfortable macro-economic and financial situation they had been enjoying over the recent years," explains Fran�ois David, Coface Chairman. "However, companies in these two countries were showing signs of strong vulnerabilities - already pinpointed by Coface - heightened by the current slowdown." Coface forecasts 7% growth for China in 2009. The Coface survey on Chinese company payment behavior, conducted over the last 6 years, has enabled to spotlight the effects of excessive competition on the private sector's contracting profit margins. In this context showing evidence of micro-economic vulnerability, the turndown in growth will result in an increase of payment defaults on the part of Chinese companies. China's A3 rating has therefore just been placed on negative watch. As for Hong Kong and Taiwan, they have been downgraded to A2. For Russia, Coface forecasts growth of 2.5% in 2009. Coface business-to-business payment experience in Russia deteriorated in 2008, mainly due to persistent deficiencies in corporate governance, these problems already taken into account in Russia's B rating. The country is now severely affected by the crisis (drop in credit, fall in oil prices). Russian companies' foreign debt rose by 140% since 2005, which should generate further payment default, hence why Russia's rating has been placed on negative watch. On a worldwide level, Coface discloses, the growth differential anticipated is now 3.1 GDP points from 2007 to 2009. It was only 2.5 points between 2000 and 2001 during the previous credit crisis due to the collapse of the Internet bubble. This slacking of growth explains the rise of over 50% in the Coface payment default index between 2007 and 2008. Coface forecasts that the credit crisis will only end when the year 2009 comes to a close. A Credit Crisis Now Similar in Extent to those of the 80s and 90s According to Coface, the credit crisis which started at the beginning of 2008 seems to have taken a new dimension in the fourth quarter when businesses in countries that had managed to hold out so far (such as Germany) are, in turn, being affected. Given the new global growth forecast of 0.9% for 2009, this crisis resembles those of the early 1980s and 1990s if we consider the growth drop. The slowdown in growth from 2007 to 2009 should be 3.1 points � just as from 1979 to 1982, and from 1989 to 1991. Nonetheless, it is below that of the 1st oil shock. For the year 2008, Coface registered an increase of 47% in its payment default index with a speeding up during the fourth quarter. The global country risk overview presented during the 13th Country Risk Conference, Coface states, emphasizes how the credit crisis has spread since it started in January 2008 in the United States, then reaching the other so-called "bubble" countries (the United Kingdom, Spain, Ireland, etc.). No area seems to be spared any longer. The industrialized countries close to the epicentre of the crisis, then the countries with no speculative bubbles but sustaining flat growth (Italy, France, Germany, Japan, etc.) have, in turn, been affected in addition to the fragile emerging countries (South Africa, Viet Nam, etc.). Note: Coface country rating does not concern Sovereign Debt, but indicates the average level of risk presented by corporates on their short term commercial transactions. Coface is a subsidiary of Natixis whose share capital (Tier 1) was 11.7 billion euros end December 2007. It employs 7,000 staff in 65 countries, serving over 45% of the world's 500 largest corporate groups. ===================== S W I T Z E R L A N D ===================== CAPRITAURO INVESTMENTS: Creditors Must File Claims by Jan. 28 ------------------------------------------------------------- Creditors owed money by JSC Capritauro Investments are requested to file their proofs of claim by Jan. 28, 2009, to: Industriestrasse 7 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 25, 2008. FORINVEST BETEILIGUNGEN: Deadline to File Claims Set Jan. 24 ------------------------------------------------------------ Creditors owed money by LLC Forinvest Beteiligungen are requested to file their proofs of claim by Jan. 24, 2009, to: Karl Schafer Buro Schafer Lavaterstrasse 57 8002 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 19, 2008. HOUSE OF FASHION: Creditors Have Until Jan. 24 to File Claims --------------------------------------------------------------- Creditors owed money by LLC House of Fashion are requested to file their proofs of claim by Jan. 24, 2009, to: Karsten Myralf Scheideggstrasse 21 6045 Meggen Switzerland The company is currently undergoing liquidation in Meggen LU. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. LARO SPORT: Proof of Claim Filing Deadline Set Jan. 24 ------------------------------------------------------ Creditors owed money by JSC Laro Sport are requested to file their proofs of claim by Jan. 24, 2009, to: Marie-Therese Rogger Seetalstrasse 40 6020 Emmenbrucke Switzerland The company is currently undergoing liquidation in Emmen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 27, 2008. STERLING TRADING: Creditors' Proofs of Claim Due by Jan. 23 ------------------------------------------------------------ Creditors owed money by JSC Sterling Trading are requested to file their proofs of claim by Jan. 23, 2009, to: Kurt Zwyssig Brisenstrasse 9 6370 Stans Switzerland The company is currently undergoing liquidation in Stans. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 3, 2008. TCM JSC: Jan. 24 Set as Deadline to File Claims ----------------------------------------------- Creditors owed money by JSC TCM are requested to file their proofs of claim by Jan. 24, 2009, to: Rolando Wyss JSC TCM Alpenstrasse 2 6304 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 14, 2008. ZB ARCHITEKTUR: Creditors Must File Proofs of Claim by Jan. 23 -------------------------------------------------------------- Creditors owed money by LLC ZB Architektur und Umwelt are requested to file their proofs of claim by Jan. 23, 2009, to: Mittlere Strasse 32 3600 Thun Switzerland The company is currently undergoing liquidation in Thun. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 26, 2008. ZWAHLEN FOTO-OPTI: Deadline to File Proofs of Claim Set Jan. 22 --------------------------------------------------------------- Creditors owed money by LLC Zwahlen Foto-Opti are requested to file their proofs of claim by Jan. 22, 2009, to: Peter Zwahlen-Muhle Buhlbergstrasse 37 3775 Lenk Switzerland The company is currently undergoing liquidation in Lenk. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 19, 2008. ============= U K R A I N E ============= AVTOTOVARY LLC: Creditors Must File Claims by January 23 -------------------------------------------------------- Creditors of LLC Trading and Production Firm Avtotovary (EDRPOU 24252456) have until Jan. 23, 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. 11, 2008. The case is docketed as 23/520-b. The Debtor can be reached at: LLC Trading and Production Firm Avtotovary Perov Str. 19 02218 Kiev Ukraine BALTIMOR-FISH LLC: Creditors Must File Claims by January 23 ----------------------------------------------------------- Creditors of LLC Baltimor-Fish (EDRPOU 33563234) have until Jan. 23, 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. 4, 2008. The case is docketed as B 26/256-08. The Debtor can be reached at: LLC Baltimor-Fish Apt. 108 Mir avenue, 83 49000 Dnipropetrovsk Ukraine DON-LINK LLC: Creditors Must File Claims by January 23 ------------------------------------------------------ Creditors of LLC Don-Link (EDRPOU 30872608) have until Jan. 23, 2009, to submit proofs of claim to: Mr. O. Shipitsyn Liquidator / Insolvency Manager Apt. 52 Leninsky avenue, 29 83102 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 11, 2008. The case is docketed as 45/227B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Don-Link Illich avenue, 11 83000 Donetsk Ukraine DRUZHBA HOTEL: Creditors Must File Claims by January 23 ------------------------------------------------------- Creditors of State Communal Enterprise Druzhba Hotel (EDRPOU 13554326) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Arbitration Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 3, 2008. The case is docketed as 7/163-b. The Debtor can be reached at: State Communal Enterprise Druzhba Hotel K. Liebkneht Str. 82 Berdichev 13300 Zhytomir Ukraine DWELLING INDUSTRIAL: Creditors Must File Claims by January 23 ------------------------------------------------------------- Creditors of OJSC Dwelling Industrial Building-8 Subsidiary Company Hydro Building Installation (EDRPOU 31043479) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 26, 2008. The case is docketed as 5/524/08. The Debtor can be reached at: OJSC Dwelling Industrial Building-8 Subsidiary Company Hydro Building Installation Tolstoy Str. 2-b Nikolaev Ukraine EARTH FERTILITY: Creditors Must File Claims by January 23 --------------------------------------------------------- Creditors of OJSC on Earth Fertility Increase and Plant Defence Agricultural Service (EDRPOU 05489849) have until Jan. 23, 2009, to submit proofs of claim to: Mr. S. Chervoniuk Liquidator Kulparkovskaya Str. 130B/77 79021 Lvov Ukraine The Arbitration Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 12, 2008. The case is docketed as 4/149. The Economic Court of Lvov Lichakivska Str. 128 79010 Lvov Ukraine The Debtor can be reached at: OJSC on Earth Fertility Increase and Plant Defence Agricultural Service Bepovskaya Str. 19 Zolochev 80700 Lvov Ukraine ENAKIEVO REGIONAL: Creditors Must File Claims by January 23 ----------------------------------------------------------- Creditors of CJSC Enakievo Regional Milk Plant (EDRPOU 00445245) have until Jan. 23, 2009, to submit proofs of claim to: Mr. Nikita Samokish Temporary Insolvency Manager Tcheliuskintsev Str. 39/5 83086 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 9, 2008. The case is docketed as 42/174B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: CJSC Enakievo Regional Milk Plant Beregovoy avenue, 10 Enakievo 86414 Donetsk Ukraine INSECT OFF: Creditors Must File Claims by January 23 ---------------------------------------------------- Creditors of LLC Insect Off (EDRPOU 35218387) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 5/592/08. The Debtor can be reached at: LLC Insect Off Artillereyskaya Str. 10 Nikolaev Ukraine KRASNY LUCH: Creditors Must File Claims by January 23 ----------------------------------------------------- Creditors of OJSC Krasny Luch Breadreceiving Enterprise (EDRPOU 00957301) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Arbitration Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 1, 2008. The case is docketed as 11/54b. The Debtor can be reached at: OJSC Krasny Luch Breadreceiving Enterprise Malidovsky Str. 15 Krasny Luch Lugansk Ukraine LUGANSKOYE LLC: Creditors Must File Claims by January 23 -------------------------------------------------------- Creditors of Luganskoye LLC (EDRPOU 30349040) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 3, 2008. The case is docketed as 42/171B. The Debtor can be reached at: Luganskoye LLC Lazo Str. 1 Luganskoye Maryinsky 85662 Donetsk Ukraine SPETSMETIZ LLC: Creditors Must File Claims by January 23 -------------------------------------------------------- Creditors of LLC Spetsmetiz (EDRPOU 34667226) have until Jan. 23, 2009, to submit proofs of claim to: Mrs. S. Lunkova Liquidator / Insolvency Manager Apt. 47 Politboytsov Str. 5 83054 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 11, 2008. The case is docketed as 27/183B. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Spetsmetiz Apt. 78 Somov Str. 22 83008 Donetsk Ukraine TALAN LLC: Creditors Must File Claims by January 23 --------------------------------------------------- Creditors of LLC Trading And Production Firm Talan (EDRPOU 20899089) have until Jan. 23, 2009, to submit proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 5/593/08. The Debtor can be reached at: LLC Trading and Production Firm Talan Chkalov Str. 20/5 Nikolaev Ukraine =========================== U N I T E D K I N G D O M =========================== ACROBAT MUSIC: Appoints Joint Administrators from Tenon Recovery ---------------------------------------------------------------- S. J. Parker and C. D. Wilson of Tenon Recovery were appointed joint administrators of Acrobat Music Group Ltd. on Dec. 24, 2008. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England ALPHA ANODISING: Names Baker Tilly as Joint Administrators ---------------------------------------------------------- Michael David Rollings and Andrew Martin Sheridan of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Alpha Anodising Ltd. on Jan. 9, 2009. The company can be reached at: Alpha Anodising Ltd. 10 Woodfalls Business Park Gravelly Ways Laddingford Kent ME18 6DA England ASTRO EXHIBITIONS: Appoints Joint Liquidators from PKF ------------------------------------------------------ Kerry Bailey and Jonathan Newell of PKF (UK) LLP were appointed joint liquidators of Astro Exhibitions Ltd. on Jan. 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through PKF (UK) LLP at: Sovereign House Queen Street Manchester M2 5HR England CROMWELL PRESS: Taps Joint Administrators from KPMG --------------------------------------------------- Jonathan Scott Pope and Richard John Hill of KPMG LLP were appointed joint administrators of Cromwell Press Ltd. on Jan. 12, 2009. The company can be reached at: Cromwell Press Ltd. Aintree Avenue White Horse Business Park Trowbridge Wiltshire BA14 0XB England DSG INTERNATIONAL: Group Sales Down 1% for 12-Wks Ended Jan. 10 --------------------------------------------------------------- DSG international plc in its trading statement for the 12 weeks ended January 10, 2009, said total Group sales were down 1% in sterling and like for like sales were down 10%. In the two week period to January 10, Group like for likes were up 2%, with a better performance in UK computing and electricals and with Nordics flat. However, Gross margins across the Group were down 0.8% year on year, primarily as a result of both the increased proportion of revenue in the sale period as well as a higher mix of televisions and laptops. The Group noted it remains focused on cash, cutting costs, managing margins and reducing stock. It implemented further cost reductions in the current year of GBP20 million in response to trading environment, bringing total cost savings for the year to GBP95 million. Meanwhile, careful stock management has resulted in stock levels 16% lower than last year at constant exchange rates. The Group said it is operating within its GBP400 million committed credit facility which is currently undrawn and available, although it is expected that some drawdown will occur in the final quarter, as anticipated. According to the Group, its renewal and transformation plan is on track: * New format stores continue to perform strongly with sales 15% to 25% ahead of the rest of the chain; * 41 PC World, 11 Currys Superstores, 4 Currys.digital, 1 Currys Megastore and 1 trial combined PC World and Currys store all traded through Christmas Peak; * Currys Megastore sales and gross profit contribution exceeded expectations and should generate over GBP30 million of sales per year. John Browett , Chief Executive, commented: "The sales pattern through the period was as we anticipated with customers waiting for the post Christmas sales to purchase discretionary products, particularly televisions and laptops. Our Renewal and Transformation plans continue to progress well. Early results from the new store formats, which have now traded through Peak, have continued to exceed our expectations and give us confidence that our plans are delivering for our customers. We expect 2009 to be challenging across most of our markets and are actively planning and managing the business for negative like for likes." Headquartered in Hemel Hempstead, England, DSG international plc -- http://www.dsgiplc.com/-- is a consumer electronics retailer. * * * As reported in the TCR-Europe on Nov. 13, 2008, Fitch Ratings downgraded UK-based consumer electronics retailer DSG International plc's Long-term Issuer Default rating to 'BB-' from 'BB+' and affirmed the company's Short-term IDR at 'B'. The Rating Outlook remains Negative. DSG INTERNATIONAL: Moody's Reviews 'Ba3' Rating for Possible Cut ---------------------------------------------------------------- Moody's Investors Service has placed the Ba3 Corporate Family Rating and senior unsecured rating of DSG International plc under review for possible downgrade, as the operating performance recorded during the key Christmas period proved weaker than Moody's had expected. In its trading statement for the 12 weeks ended January 10, 2009, DSGi's like for like sales declined by 10% and gross margins weakened by 0.8%, resulting from a further reduction in footfall, price deflation and a greater proportion of revenues generated during the sales period. The weaker performance further highlights the challenges facing the businesses within the group prompting the need for assertive corrective actions to halt the negative trend. Management has undertaken deeper cost cuts, improved working capital efficiency and is seeing some positive signs from recently reformatted stores but overall the measures undertaken to-date have proved insufficient to stem the decline in credit metrics, which have been hit severely by the present recessionary environment. Moody's review will therefore focus on what tangible and timely corrective actions are to be implemented across the group to improve operating performance, restore financial stability to the company and mitigate risks of a potential breach of the financial covenants included in its core credit agreement. Moody's previous rating action on DSGi was on December 1, 2008, when the rating agency downgraded DSGi's CFR to Ba3 from Ba1. Headquartered in Hemel Hempstead, England, DSG International plc is one of Europe's leading specialist consumer electrical retailers. It posted revenues of GBP8.5 billion for the fiscal year ending in April 2008. DUCHY CATERING: Appoints Joint Administrators from KPMG ------------------------------------------------------- Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of Duchy Catering Ltd. on Jan. 9, 2009. The company can be reached at: Duchy Catering Ltd. Fairfax House Merrion Street Leeds LS2 8JU England FUTURE-PEOPLE RECRUITMENT: Names Joint Liquidators from BDO ----------------------------------------------------------- Simon Edward Jex Girling and Graham David Randall of BDO Stoy Hayward LLP, were appointed joint liquidators of Future-People Recruitment Ltd. on Dec. 27, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England GREAT LEIGHS: Goes Into Administration After Losing License ----------------------------------------------------------- Chantell Thorley at Event Magazine reports that Great Leighs has gone into administration after the British Horseracing Authority revoked its license. The GBP40 million racecourse, which opened just eight months ago, had been operating under a temporary license since the start of 2009. The report relates that according to the BHA, an application for a new temporary license to operate until the end of January was declined at a hearing on Thursday, January 15. The BHA however has not made public the reasons for its decisions, the report notes. Meanwhile, administrator Deloitte will be assessing the position of the companies affected in order to determine the best outcome for their creditors, and will continue to trade the business in the short term while it investigates the opportunity of a sale, the report discloses. HSBC HOLDINGS: Sub-Prime Biz May Spur Need for Substantial Funding ------------------------------------------------------------------ HSBC Holdings Plc has a substantial and worsening capital shortfall, shareholder Knight Vinke Asset Management LLC said. Knight Vinke noted recent research reports issued by Morgan Stanley and Goldman Sachs regarding HSBC's need for a very substantial rights' issue, which "could be the largest rights' issue ever made in the United Kingdom." Bloomberg News relates Goldman Sachs Group Inc. and CLSA Asia- Pacific Markets earlier predicted HSBC will be forced to sell shares for the first time since the financial crisis began in 2007. According to Bloomberg News, Goldman analysts said Jan. 16 HSBC may post a US$1.5 billion loss, raise US$17 billion in a share issue, and pay no dividend in 2009, citing a deteriorating U.S. economy and falling property prices. As it predicted in early 2007, Knight Vinke said Household International, HSBC's sub-prime lending business in the United States, has turned out to be an unmitigated disaster. "This is a depreciating business, the fair value of whose assets is US$20 billion less than its liabilities (by HSBC's own admission)," the long term HSBC shareholder said in a January 18 statement. Eric Knight, CEO of Knight Vinke, pointed out that if Household is not restructured, shareholders will bear all of the pain because Household's debt is not guaranteed by HSBC. "HSBC should stop pretending that a restructuring of Household is inconceivable: all major banks with similar problems are now thinking what was previously unthinkable," Mr. Knight said. Knight Vinke also noted that HSBC's capital structure is much weaker than would be suggested by the Tier 1 ratio, adding that having a strong Tier 1 ratio is absolutely no guarantee that additional capital will not be required. HSBC Denies Need for Funding The London-based lender refuted Knight Vinke's projection saying it is one of the world's most strongly capitalized banks. The bank is one of the world's most "strongly capitalized" lenders and hasn't sought capital support from the U.K. government, HSBC said in a statement obtained by Bloomberg News. The bank "cannot envisage circumstances" where it would need government funding, HSBC added. Madoff Exposure On December 15, 2008, HSBC confirmed it provided financing to a small number of institutional clients who invested in funds with Madoff Investment Securities LLC. HSBC said its potential exposure under these financing transactions is in the region of US$1 billion. HSBC also has custody clients who have invested with Madoff, however, it does not believe that these custodial arrangements should be a source of exposure to the group. Likely Fitch Downgrade Fitch Ratings, according to Bloomberg News, warned it may cut HSBC's credit rating as the global recession undermines its finances. Bloomberg News discloses Fitch cut its outlook on HSBC's debt to "negative" from "stable" and said the bank's long-term issuer default rating may be lowered over the "medium term". HSBC's profitability in the fourth quarter was probably "weak" and the bank is increasingly likely to need to raise funds to support the U.S. unit, Bloomberg News cited Fitch as saying. About HSBC Headquartered in London, England, HSBC Holdings plc (NYSE:HBC) -- http://www.hsbc.com/-- is a banking and financial services organization. Its international network comprises over 10,000 properties in 83 countries and territories in Europe; Hong Kong; rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America. HSBC Holdings together with its subsidiaries (HSBC) provides a range of financial services to more than 128 million customers. HSBC manages its business through two customer Groups: Personal Financial Services and Commercial Banking, and two global businesses: Global Banking and Markets, and Private Banking. Personal Financial Services incorporates the Company's consumer finance businesses. The largest of these is HSBC Finance Corporation (HSBC Finance), a consumer finance company in the United States. On March 26, 2007, the company acquired the remaining 50.01% of Erisa S.A. and Erisa I.A.R.D. In September 2008, Lehman Brothers sold its entire 2.09% stake in Amtek Auto Ltd. to HSBC Holdings PLC. MOSAIC FASHIONS: Mulls Sale of Shoe Studio Chain ------------------------------------------------ James Hall at The Daily Telegraph reports that following a strategic review of its operations Mosaic Fashions hf has called in boutique investment bank Hawkpoint to find a buyer for its 249- store Shoe Studio shoe chain. Citing shoe industry sources, the report says high-end shoe chain Kurt Guiger could be the front-runner to acquire the business, which includes the Nine West and Pied A Terre chains. Shoe Studio, the report discloses, trades in the UK and Ireland. The report recalls Mosaic last week issued a profit warning, although its sales held up relatively well over the second half of last year. On Jan. 7, 2009, the TCR-Europe reported that according to The Sunday Times, Mosaic was set to enter talks with Kaupthing bank hf on its working capital needs in an attempt to secure the long-term future of the company, which has been hit for months by the withdrawal of credit insurance. The Sunday Times said among the options considered include a debt- for-equity swap, injecting more cash into the business or selling the debt to one of a string of potential suitors, including Sir Philip Green, the BHS owner, or Alchemy, the private-equity group. According to The Sunday Times, if the company failed to reach a deal in the next few months it could enter into administration because the management team will not want to break City rules preventing a business from trading if it is technically insolvent. The Sunday Times recounted some suppliers are demanding upfront payments from Mosaic, putting pressure on the company's balance sheet. Mosaic, The Sunday Times said, is unable to make any interest payments on its estimated GBP400 million debt pile as its loans are under the control of a government-appointed committee now running Kaupthing. However, a source close to Baugur, Mosaic's part-owner, maintained that although trading was tough, there is no likelihood that the company will go into administration, The Sunday Times noted. Mosaic Fashions hf -- http://www.mosaic-fashions.co.uk/-- is the parent company of eight design-led fashion brands; Anoushka G, Coast, Karen Millen, Oasis, Odille, Principles, Shoe Studio and Warehouse. ROYAL BANK: Eyes GBP7 - 8 billion Full Year 2008 Loss ----------------------------------------------------- The Royal Bank of Scotland Group plc ("RBS") estimates the group will report for full year 2008 an attributable loss, before exceptional goodwill impairments, of between GBP7.0 billion and GBP8.0 billion. Bloomberg News reports the news sent the group's stock down by 67 percent, the most since September 1988, to 11.6 pence, paring the lender's market value to GBP4.6 billion (US$6.7 billion). Meanwhile, RBS said it has reached agreement with HM Treasury ("HMT") and UK Financial Investments ("UKFI") to replace the GBP5 billion of preference shares it holds with new ordinary shares. Eligible RBS shareholders will be able to apply to subscribe for approximately GBP5 billion of new ordinary shares pro rata to their existing shareholdings at a fixed price of 31.75 pence per share. This represents an 8.5 per cent discount to the closing price on January 16, 2009. The new ordinary shares will be offered to shareholders and new investors on the same basis as the Offer in November 2008. The ordinary shares offer is fully underwritten by HMT. The proceeds of the issue will be used to fully redeem the preference shares held by HMT. "The dislocation of credit markets and the global economic downturn continue to hit RBS hard, as with many other banks. We are making progress in recognizing excess risk and dealing with it. Significant uncertainties and risks inevitably remain. In this context, the support we are receiving from Government benefits all our stakeholders and enables us to provide more customer support in return. With enhanced core capital, removal of the preference share dividend and the prospect of further asset and liquidity measures, RBS is able to continue its strategic restructuring purposefully," Stephen Hester, RBS Group Chief Executive, said. RBS expects to release its 2008 results on February 26, 2009. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Fitch Downgrades Individual Rating to 'E' ----------------------------------------------------- Fitch Ratings has downgraded The Royal Bank of Scotland Group plc's Individual rating and that of its main operating subsidiaries The Royal Bank of Scotland plc and National Westminster Bank plc to 'E' from 'B/C'. NatWest's Individual rating has been subsequently withdrawn. The action follows RBS Group's announcement that it expects to report an attributable loss of between GBP7 billion and GBP8 billion for 2008, and that it has reached an agreement to replace GBP5 billion of preference shares held by the UK government with new ordinary shares. The three companies' Long-term Issuer Default Ratings and Short- term IDRs are affirmed at 'AA-' (AA minus) and 'F1+' respectively. RBS Group's Support rating has been upgraded to '1' from '5' and its Support Floor has been revised to 'AA-' (AA minus) from 'No Floor'. The Outlook for the IDRs remains Stable, reflecting an expectation of continued strong government support for RBS Group. Fitch has also downgraded RBS Group's and RBS plc's Tier 1 preference shares to 'BB-' (BB minus) from 'A+', and upper tier 2 hybrid capital instruments issued by group companies to 'BB' from 'A+' and placed all of these securities on Rating Watch Negative. The loss will arise largely as a result of additional credit market write-downs, lower income in the group's Global Banking & Markets division, impairment provisions relating to Lyondell Basell Industries and Bernard L Madoff Investment Securities LLC, and rising credit impairments across a broad range of portfolios and exposures. In downgrading the Individual ratings, Fitch is signaling its concern over increasing risks and worsening operating outlooks for the group's main businesses, together with the unique challenges the group faces in integrating ABN AMRO businesses in increasingly difficult market conditions. RBS Group also announced that following completion of a review of the carrying value of goodwill, it expects to make a goodwill impairment charge of between GBP15 billion and GBP20 billion. The agency views UK government actions to support RBS Group and the broader UK banking system as positive for creditors, but notes the potential for restricted operational flexibility as a result of conditions that could be imposed by the UK government, the group's controlling shareholder. Fitch expects to see some significant changes to the group's strategic direction and priorities following completion of a strategic review. The UK government has announced fresh measures aimed at supporting the UK financial system and facilitating the availability of credit to UK borrowers. Fitch will comment separately on these particular initiatives but expects RBS Group to be an early user of the new schemes. Following the announcement in October 2008 that the major UK banks would be recapitalized, underwritten by the UK government, the RBS Group is currently 58% owned by the UK government. The replacement of the government-subscribed preference shares with ordinary shares will increase the UK government's stake in RBS Group to close to 70%. This large government stake, together with ongoing official commitment to provide capital and funding support to the major UK banks, underpins Fitch's continued view of the very strong likelihood of support for the RBS Group, and supports the upgrade of RBS Group's Support rating and Support Floor, as well as a Stable Outlook on the group's IDRs. The economic outlook for RBS Group's main operating markets (particularly the UK, US and Ireland) is negative over the short- to medium-term and there remains significant uncertainty over the depth and length of the current recession. Fitch expects to see steady pressure on the group's earnings and asset quality as these economies continue to weaken. In the UK, RBS Group has not been as aggressive as some competitors in the residential housing and consumer lending markets and this should offer some protection as these segments continue to weaken. The expected increase in loan impairment charges relating to the group's Regional Markets businesses is GBP0.4 billion compared to its November interim management statement. However, its leading share of the UK SME market and significant commercial property and large corporate exposures, where some concentrations have arisen following the ABN AMRO acquisition, are likely to pose some problems. The outlook for commercial property in 2009 remains negative as economic developments continue to put pressure on asset values and rentals. Outside the UK, the group is likely to suffer from asset quality deterioration in the US and Ireland. In the US, Citizens has historically been a low-risk lender, but has an externally sourced portfolio of home equity loans that is showing rapid deterioration, and its core lending is unlikely to escape the problems being felt in the US housing market and by the broader US economy. In Ireland, Ulster Bank faces similar pressures to the UK; a deteriorating economic environment, an abrupt contraction in economic growth forecast, rising unemployment and a worsening outlook for commercial property. Fitch considers that this is likely to lead to weaker revenue generation, sharp rises in impaired loans and steep falls in operating profitability. RBS Group's capitalization currently appears adequate following the government's recapitalization operations, but is expected to decline as problems relating to recessionary economies materialize. The replacement of government preference shares with common equity will add around 86bp to the group's core equity Tier 1 ratio, which is expected to be in the range of 6.9% to 7.4% at end-2008. The Tier 1 ratio is expected to be between 9.5% and 10%. The massive goodwill impairment will not impact regulatory capital, but confirms the huge destruction of shareholder value that came from the ABN AMRO deal. Fitch expects 2009 to be characterized by sharply declining asset quality and pressure on revenues, particularly in businesses more reliant on market activity, thereby impacting internal capital generation severely. The group's funding has stabilized following the implementation of UK government initiatives in October 2008. The RBS Group, as have other UK major banks, has become increasingly reliant on guarantee schemes for longer-term funding, and Fitch does not expect this to diminish in the near-term. The downgrade of RBS Group's, RBS plc's and Natwest's Individual ratings to 'E' reflects Fitch's opinion that due to the scale of the problems, RBS Group and its main operating banks are clearly reliant on external support - and to a greater extent than most other banks. The future direction of the group's and operating subsidiaries' Individual ratings will depend upon the pace and severity of continued pressures in the operating environment, together with the group's success in integrating ABN AMRO, de- leveraging the group's balance sheet, and implementing a refocused, lower risk, strategy. An additional element of uncertainty is the potential for government pressure to be brought to bear on the group to increase lending volumes to specific economic segments within the UK and it remains to be seen how compatible the group's de-leveraging and de-risking strategy is with government objectives. Fitch's downgrade of RBS Group's preference shares and upper tier 2 hybrid capital instruments reflects the agency's view that deferral risk has increased significantly for banks that are in receipt of public funds, as well as the group's weakened standalone coupon-servicing capacity, as reflected in its Individual rating. This risk is heightened by the recognition that there is significant capital and financial flexibility to be retained by deferring on such instruments as well as Fitch's opinion that the replacement of government preference shares with common equity will result in a significantly elevated risk that market investors in RBS Group hybrid capital could be expected to share this burden with the UK taxpayer. The upper tier 2 instruments have been rated one notch higher than preference shares at 'BB' to reflect their higher recovery prospects. These ratings actions have been taken: Royal Bank of Scotland Group plc: -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook remains Stable -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper Tier 2 instruments: downgraded to 'BB' from 'A+'; on Rating Watch Negative -- Preferred stock: downgraded to 'BB-' (BB minus) from 'A+'; on Rating Watch Negative -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+'; -- Individual rating: downgraded to 'E' from 'B/C' -- Support rating: upgraded to '1' from '5' -- Support Rating Floor: revised to 'AA-' (AA minus) from 'No Floor' Royal Bank of Scotland plc: -- Long-term IDR: affirmed at 'AA-('AA minus')' ; Outlook remains Stable -- Guaranteed debt: affirmed at 'AAA' -- Senior unsecured debt: affirmed at 'AA-('AA minus')' -- Subordinated debt: affirmed at 'A+' -- Upper Tier 2 instruments: downgraded to 'BB' from 'A+'; on Rating Watch Negative -- Preferred stock: downgraded to 'BB-' (BB minus) from 'A+'; on Rating Watch Negative -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+'; -- Individual rating: downgraded to 'E' from 'B/C' -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' (AA minus) National Westminster Bank Plc: -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook remains Stable -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper Tier 2 instruments: downgraded to 'BB' from 'A+'; on Rating Watch Negative -- Preferred stock: downgraded to 'BB-' (BB minus) from 'A+'; on Rating Watch Negative -- Short-term IDR: affirmed at 'F1+' -- Individual rating: downgraded to 'E' from 'B/C'; rating withdrawn -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' (AA minus) Ulster Bank Ltd -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Short-term IDR: affirmed at 'F1+' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' Ulster Bank Finance plc: -- Commercial paper: affirmed at 'F1+' Ulster Bank Ireland Limited: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Senior unsecured debt: affirmed at 'A+' -- Short-term IDR: affirmed at 'F1+' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' First Active Plc: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Senior unsecured debt: affirmed at 'A+' -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' Greenwich Capital Holdings Inc.: -- US commercial paper: affirmed at 'F1+' Citizens Financial Group, Inc.: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' RBS Citizens, NA (formerly Citizens Bank, NA): -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Short-term IDR: affirmed at 'F1' -- Long-term deposits: affirmed at 'AA-' (AA minus) -- Short-term deposits: affirmed at 'F1+' -- Senior unsecured debt: affirmed at 'A+' -- Subordinated debt: affirmed at 'A' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' Citizens Bank of Pennsylvania: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Short-term IDR: affirmed at 'F1' -- Long-term deposits: affirmed at 'AA-' (AA minus) -- Short-term deposits: affirmed at 'F1+' -- Individual rating: 'B/C'; on Rating Watch Negative -- Support rating: affirmed at '1' Charter One Bank, NA: -- Senior unsecured debt: affirmed at 'A+' -- Subordinated debt: affirmed at 'A' ABN AMRO Bank NV -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook remains Stable -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper Tier 2 instruments: downgraded to 'BB' from 'A+'; on RatingWatch Negative -- Short-term IDR: affirmed at 'F1+' -- Commercial Paper and short-term debt: affirmed at 'F1+' -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' (A minus) -- Mortgage covered bonds: remain unaffected by the action ROYAL BANK: S&P Cuts Ratings on Hybrid Capital Issues to 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'A+/A-1' long- and short-term counterparty credit ratings on The Royal Bank of Scotland PLC and related entities. RBS is the main operating entity of U.K. bank holding company The Royal Bank of Scotland Group PLC. The outlooks on all entities remain stable. At the same time, Standard & Poor's lowered its ratings on RBSG's hybrid capital issues to 'BB' from 'BBB', reflecting S&P's view that dividend payment deferral risk has increased. Additionally, the 'BB' ratings were placed on CreditWatch with negative implications. S&P considers RBSG to be of high systemic importance to the U.K. banking system and S&P now explicitly factors four notches of uplift into the long-term counterparty credit rating on RBSG. "These rating actions follow RBSG's announcement of a trading update and capital restructuring. In S&P's opinion, the company's announcement is more pessimistic than S&P's own reduced expectations when S&P lowered the ratings on RBSG on Dec. 19, 2008. Partly offsetting this negative development, RBSG has also announced that it has reached an agreement with the U.K. government to replace the GBP5 billion preference shares the government holds with new ordinary shares. As a result, it is expected that the U.K. government's ownership stake will rise to 70% from 58%," said Standard & Poor's credit analyst Nigel Greenwood. The latter development reinforces S&P's view that external support is a significant supporting factor in the ratings on RBSG. RBSG has stated that it may report a full-year 2008 attributable loss of between GBP7 billion to GBP8 billion. Moreover, RBSG indicates that this amount excludes a goodwill impairment charge that RBSG estimates will be in the region of GBP15 billion to GBP20 billion. Taken together this will, by a considerable margin, be the largest corporate loss recorded by a U.K. company. Within this performance, key developments since RBSG's last trading statement on Nov. 4, 2008, include significantly higher credit impairment losses than previously forecast by the management, further structured credit market write-downs, and much lower income in RBSG's Global Banking and Markets division. S&P believes that RBSG's particular vulnerability to the economic downturn, most notably its substantial wholesale banking business and its large commercial real estate exposures, render its prospects for asset quality and earnings in 2009, and probably beyond, to be poor relative to domestic and global peers. Prior to the proposed capital restructuring, RBSG states that its core Tier 1 ratio will be between 6.0% and 6.5% at year-end 2008. This represents a material decline from a pro forma ratio of 7.9% at Sept. 30, 2008. As well as the weak performance in the fourth quarter of 2008, this decline also reflects the negative impact of the sharp depreciation of the British pound relative to other major currencies on risk-weighted assets. By converting the government-owned preference shares into common equity, RBSG states that its pro forma core Tier 1 ratio would improve by just under 1% to between an estimated 6.9% to 7.4%. The greater focus on common equity, as opposed to preference shares, is a positive factor in S&P's rating analysis of RBSG relative to global peers. The capital restructuring further reinforces S&P's opinion that external support from the U.K. government underpins the ratings. S&P consider RBSG to be of high systemic importance to the U.K. banking system and S&P now explicitly factors four notches of uplift into the long-term counterparty credit rating on RBSG, compared with three notches previously. S&P does not equalize the ratings on RBSG with the sovereign ratings on the United Kingdom (AAA/Stable/A-1+) because it remains a commercial institution with no formal public policy role, and while S&P expects government support to remain in place for a sustained period, S&P also believes that the government does not intend to be a permanent shareholder. The downgrade of the hybrid issues reflects S&P's view that RBSG may exercise its option to defer payment, for example, if its earnings outlook deteriorated further or if further material government support was extended to support RBSG. Such a deferral is arguably facilitated by the capital restructuring, whereby the government will no longer own hybrid securities in RBSG. S&P expects to resolve the CreditWatch placement on the hybrid issues in the next 90 days pending further meetings with RBSG's management to discuss their earnings prospects and capital plans and the resolution of state aid approval. The outlook is stable. "We expect RBSG to continue to face earnings difficulties managing through the tough credit cycle over the two-year outlook horizon. If required, S&P expects government action will continue to support the counterparty credit ratings," added Mr. Greenwood. A lower rating could occur if underlying preprovision earnings deteriorate to the extent that RBSG is loss making through the outlook time horizon or if S&P believes that loan impairment losses will more than double from 2008 levels. In this event, external support may not, in S&P's view, be sufficient to continue to justify the current ratings. However, S&P's expectation that external support for RBSG will persist until its stand-alone creditworthiness materially improves means that S&P would be unlikely to lower the ratings by more than one notch. S&P also note that RBSG is in the process of a major strategic review, the outcome of which could conceivably lead to a lowering of the ratings. This would be the case should it have, in S&P's opinion, a materially negative impact on its future business and financial profile (although S&P has already factored a weaker business profile than hitherto believed, into S&P's current ratings). During the next several years, S&P expects the issuer credit rating and S&P's stand-alone assessment to converge at the current issuer credit rating level, at the stand-alone profile, or somewhere in between. S&P will track RBSG's level of success in adapting to the new financial landscape and regulatory environment. B2a BB/Watch Neg BB D[1] SOFIA WORKS: Taps Joint Liquidators from Tenon Recovery ------------------------------------------------------- Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of Sofia Works Ltd. on Jan. 6, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire O53 3TZ England TALES OF ROBIN HOOD: Goes Into Voluntary Liquidation ---------------------------------------------------- The Tales of Robin Hood has officially gone into voluntary liquidation, resulting to the loss of up to 40 jobs, the Evening Post reports. The report recalls the attraction, in Maid Marian Way, closed to the public earlier this month after running up rent arrears with landlords Tesco. TATA MOTORS: Jaguar Land Rover Halts Work at Birmingham Plant ------------------------------------------------------------- BBC News reports that Tata Motors Limited's Jaguar Land Rover unit has halted work at its car plant in Castle Bromwich, Birmingham, for two weeks. BBC recalls workers only returned to the company's Solihull site on Monday after an extended three-week shutdown. The factory, which currently employs about 3,500 workers, assembles all the Jaguar XF, XJ and XK models, BBC discloses. Job Cuts On Jan. 16, 2009, the TCR-Europe, citing BBC, reported Jaguar Land Rover is cutting 450 jobs, blaming "a severe reduction in demand". BBC stated 300 managers will be made redundant while 150 salaried agency staff will also lose their jobs. According to BBC, the company said it had begun consulting with unions on the proposed redundancy program. In November last year, the company, BBC recounted, axed 850 agency IT and engineering staff and said it was in talks with the government over a possible bail out. Jaguar Land Rover chief executive David Smith, as cited by BBC, said he did not expect sales to return to normal levels "for some time". He added the company needed to become more efficient so it could invest in new models and technology when the market improved. "It is only right and proper that our response to the unavoidable impact of the credit crunch and a severe reduction in demand includes actions across all grades and functions in the company," Mr. Smith was quoted by the report as saying. "It is critical that Jaguar Land Rover becomes a more efficient and dynamic organization to face up to the challenges that we will meet in the years ahead." Capital Injection On Dec. 26, 2008, the TCR-Europe reported that according to The Financial Times, Tata Motors agreed to inject "tens of million" of pounds into Jaguar Land Rover to prevent an immediate cash flow crisis. Citing people close to Tata, the FT noted the emergency aid provided to Jaguar Land Rover comes on top of "hundreds of millions" of working capital the Indian firm had provided since it bought the car manufacturer for US$2.3 billion from Ford in March. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. UROPA SECURITIES: S&P Puts Two BB-Rated Note Classes on Watch Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on the class M1, M2, B1, B2, and D notes series 2007-1B issued by Uropa Securities PLC. The senior class A notes in the transaction remain unaffected by the rating actions. The class C notes have fully redeemed. The CreditWatch negative placements follow an initial review of the most recent loan-level data S&P has received for this transaction. S&P's analysis shows that the likelihood of negative rating actions has increased for the junior notes. The transaction has now drawn on its reserve fund and interest has been deferred on the deferrable class D notes. The GBP1,613,399 reserve fund draw means that the reserve fund is now at 0.49% of the amount of the notes outstanding. This is down from 0.79% the previous quarter and 0.70% at closing. Of this draw, GBP1,514,231 (93.85%) was used to cover losses applied to the principal deficiency ledger and the rest (GBP99,168 or 6.14%) was used to cover interest shortfalls on the class B2 notes. Credit enhancement levels available to the class B1 and B2 notes have diminished as a result of the reserve fund draw. The class A, M1, and M2 notes' credit enhancement levels have increased due to principal repayments. However, the performance of the underlying collateral has deteriorated. There has been a notable increase in the number of properties repossessed. In the last quarter, 4.03% of the pool was in repossession, compared with 2.42% the previous quarter and 1.73% two quarters previous. S&P will now carry out a more detailed loan-level and cash flow analysis to investigate whether any of these notes might need to be downgraded. S&P will publish the results of this review and any changes to the ratings in due course. The notes, issued in 2007, are backed by a portfolio of first- ranking residential mortgages secured over properties in the U.K. The mortgage loans were originated by GMAC�RFC Ltd., Kensington Mortgage Co. Ltd., and Money Partners Ltd. They were subsequently bought by Topaz Finance PLC, a 100%-owned subsidiary of ABN AMRO Bank N.V. Ratings List Uropa Securities PLC EUR634.00 Million, GBP194.52 Million, and US$17.00 Million Mortgage-Backed Floating-Rate Notes and an Overissuance Of GBP8.80 Million Excess-Spread-Backed Floating-Rate Notes Series 2007-1B Ratings Placed On CreditWatch Negative Rating ------ Class To From ----- -- ---- M1a AA/Watch Neg AA M1b AA/Watch Neg AA M2a A/Watch Neg A M2b A/Watch Neg A B1a BBB-/Watch Neg BBB- B1b BBB-/Watch Neg BBB- B2a BB/Watch Neg BB D[1] BB/Watch Neg BB [1] The class D notes are repaid through excess spread and the rating on this class addresses ultimate payment of principal and interest. ********* 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 * * *