/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090206.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, February 6, 2009, Vol. 10, No. 26 Headlines A U S T R I A EIGER COMMODITY: Claims Registration Period Ends February 26 ENERGEA LLC: Claims Registration Period Ends Feb. 25 IMPADEX KG: Claims Registration Period Ends February 25 INFRAVITAL SOCIEDAD: Claims Registration Period Ends Feb. 25 BERNARD L. MADOFF: European Investors May Sue 3 Banks & Auditor MUELLER & GARTNER: Claims Registration Period Ends February 25 B E L G I U M FORTIS INSURANCE: Moody's Affirms Insurance Strength Rating PR PHARMACEUTICALS: Biotech to Write Down EUR997,706 D E N M A R K * DENMARK: Obtains EU Clearance for US$18 Bln Bailout F R A N C E ALCATEL-LUCENT: Posts EUR3.89 Bln Fourth Quarter 2008 Net Loss * FRANCE: Unveils EUR26 Bln Economic Stimulus Plan G E R M A N Y BESTPOOL BETEILIGUNGS: Claims Registration Period Ends March 4 CONTINENTAL AG: Fitch Downgrades Issuer Default Rating to 'BB' CONTINENTAL GMBH: Claims Registration Period Ends March 6 IMC SERVICE: Claims Registration Period Ends March 2 LEHMAN BROTHERS: Seeks to Sell LBT Varlik to Vector M & K VERMIETUNGS: Claims Registration Period Ends February 24 MAERKLIN HOLDING: Files for Bankruptcy; Mulls Restructuring MAGNACHIP SEMICONDUCTOR: S&P Withdraws 'SD' Corporate Rating MAKE TELEMARKETING: Claims Registration Period Ends March 5 QIMONDA AG: To Close Virginia Plant; 1,500 Jobs Affected RUWEL GMBH: Files Insolvency Amid Auto Slump; 600 Jobs at Risk SENATOR LINES: To Be Liquidated Amid Shipping Market Slump TRI PLEX: Claims Registration Period Ends March 10 H U N G A R Y * HUNGARY: Liquidation Figures to Reach 17,000 in 2009, Opten Says I C E L A N D BAUGUR GROUP: Applied for Moratorium in Reykjavik K A Z A K H S T A N AINA LINE: Proof of Claim Deadline Slated for March 13 AQUA STROY: Creditors Must File Claims by March 13 BIBARS LLP: Claims Filing Period Ends March 13 DANKAM LLP: Creditors' Proofs Claim Due on March 13 GEO PROJECT-2003: Claims Registration Ends March 13 MILESTONE TRADING: Proof of Claim Deadline Slated for March 13 NURLY LLP: Creditors Must File Claims by March 13 ONE LLP: Claims Filing Period Ends March 13 RASH TECH: Creditors' Proofs of Claim Due on March 13 YANIS LLP: Claims Registration Ends March 13 K Y R G Y Z S T A N PAK CASPIAN: Creditors Must File Claims by February 27 I R E L A N D STARLING FINANCE: S&P Withdraws 'B-' Rating on EUR27.5 Mil. Notes R U S S I A BALT-KREDO-BANK CJSC: Creditors May File Claims BIZNES-STROY-INDUSTRIYA LLC: Claims Filing Deadline Set March 2 LUZSKIY WOOD: Creditors Must File Claims by March 2 MOSCOW INTEGRATED: Fitch Downgrades Issuer Default Rating to 'BB+' SERGEYEVSKIY COAL LLC: Creditors Must File Claims by April 2 SEVER-METAL LLC: Creditors Must File Claims by March 2 SPETS-IN-STROY OJSC: Creditors Must File Claims by April 2 STROY-CITY LLC: Creditors Must File Claims by March 2 TAMBOV-STROY LLC: Creditors Must File Claims by March 2 URENSKIY KHIM-LES-KHOZ: Creditors Must File Claims by March 2 VIKO LLC: Creditors Must File Claims by March 2 * Fitch Cuts Issuer Default Ratings of Four Russian Companies * Fitch Downgrades Issuer Default Ratings of 14 Russian Banks S P A I N TDA CAM: Moody's Assigns (P)C Rating on EUR76 Mln Series D Notes S W I T Z E R L A N D BADER INFORMATIK: Creditors Must File Proofs of Claim by Feb. 13 BENQ SWITZERLAND: Deadline to File Proofs of Claim Set Feb. 14 HOLZBAU BUEL: Creditors Have Until February 14 to File Claims HUTH ENGINEERING: Proofs of Claim Filing Deadline Set Feb. 15 K + S CONSULTING: Creditors' Proofs of Claim Due by Feb. 13 KWS BAULEITUNGEN: Feb. 14 Set as Deadline to File Claims MARINIC JSC: Creditors Must File Proofs of Claim by Feb. 15 SUTER-SOFTWARE LLC: Deadline to File Proofs of Claim Set Feb. 14 UA-LESINVEST LLC: Creditors Have Until Feb. 14 to File Claims UBS AG: Held Prelim JV Talks With Wachovia, New York Post Says U K R A I N E AVANGARD-TEXT LLC: Creditors Must File Claims by February 15 AZOTBUILDINVEST LLC: Creditors Must File Claims by February 15 DRILLING SERVICE: Creditors Must File Claims by February 15 HORTITSA LLC: Creditors Must File Claims by February 15 INITIO LLC: Creditors Must File Claims by February 15 INTERPIPE LIMITED: Fitch Junks Issuer Default Rating from 'B-' LVOV PLANT: Creditors Must File Claims by February 15 SLAVUTICH-CAPITAL LLC: Creditors Must File Claims by February 15 UKREXIMBANK: Fitch Affirms Individual Rating at 'D' UKRMETENERGOCOM CJSC: Creditors Must File Claims by February 15 U N I T E D K I N G D O M ANGLO OVERSEAS: Goes Into Administration; 70 Jobs Affected ASPEN & COURT: Appoints Joint Administrators from KPMG BERNARD L. MADOFF: Seeks to Hire Counsel for U.K. Proceedings BLP UK: Goes Into Administration; About 100 Jobs at Risk BLUEBRAY PROPERTIES: Names Administrators from Ernst & Young CAMDEN GROUP: Goes Into Administration; 800 Jobs at Risk GLOBAL GENERAL: Court Grants Recognition of Foreign Proceedings GMW1 LTD: Taps Joint Administrators from KPMG LLOYDS BANKING: Scottish Widows Halts Investment Withdrawals MINI MODE: Appoints Joint Administrators from PwC SAXON PHOTOLITHO: Taps Joint Administrators from KPMG TRU-EST: Goes Into Administration; Leonard Curtis Appointed * UK: PwC Says Failed Travel Companies Steadily Increasing * UK: PwC Says Hotel Insolvencies Up 100% in Fourth Quarter 2008 * UK: PwC Says Restaurant Insolvencies Up 32% in 2008 * Fitch Sees High Risk of Deferred Interest Payments on Banks * BOOK REVIEW: Crafting Solutions for Troubled Businesses ********* ============= A U S T R I A ============= EIGER COMMODITY: Claims Registration Period Ends February 26 ------------------------------------------------------------ Creditors owed money by LLC Eiger Commodity (FN 251035w) have until Feb. 26, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Peter Zens Esteplatz 5/5 1030 Wien Austria Tel: 534 90 Fax: DW 50 E-mail: office@schopf-zens.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on March 12, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 9, 2009, (Bankr. Case No. 2 S 166/08m). ENERGEA LLC: Claims Registration Period Ends Feb. 25 ---------------------------------------------------- Creditors owed money by LLC Energea (FN 193823i) have until Feb. 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stephan Wehrberger Brucknerstrasse 4 1040 Wien Austria Tel: 505 78 61 Fax: DW 9 E-mail: wehrberger@hoch.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:20 a.m. on March 11, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 7, 2009, (Bankr. Case No. 2 S 5/09m). IMPADEX KG: Claims Registration Period Ends February 25 ------------------------------------------------------- Creditors owed money by Impadex, KG Adam & Co. (FN 2541m) have until Feb. 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Georg Unger Mariahilfer Strasse 50 1070 Wien Austria Tel: 523 62 00 Serie Fax: 526 72 74 E-mail: office@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on March 11, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 7, 2009, (Bankr. Case No. 2 S 3/09t). INFRAVITAL SOCIEDAD: Claims Registration Period Ends Feb. 25 ------------------------------------------------------------ Creditors owed money by Infravital, Sociedad Ltd (FN 254475d) have until Feb. 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Thomas Steiner Weihburggasse 18-20/50 1010 Wien Austria Tel: 513 53 63 Fax: DW 17 E-mail: steiner.steiner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on March 11, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 2, 2009, (Bankr. Case No. 2 S 1/09y). BERNARD L. MADOFF: European Investors May Sue 3 Banks & Auditor --------------------------------------------------------------- European investors estimated to have lost roughly EUR14 billion (US$18.25 billion) in the Bernard L. Madoff scam plan to sue banks UBS AG, HSBC Holdings Plc, Bank Medici AG and auditor Ernst & Young for hundreds of millions of euros in damages, Reuters reports citing investor activist group Deminor International, which is launching the legal offensive. "Only full compensation for our clients will be considered a satisfactory solution," Reuters quoted Erik Bomans, a partner at Deminor, as saying. The report relates Deminor said UBS and Bank Medici acted as investment managers in depositing money in funds exposed to Mr. Madoff's firm, Bernard L. Madoff Investment Securities LLC, adding that UBS and HSBC also acted as custodians for the funds that invested in Madoff. Deminor, as cited by the report, said in all cases, the financial institutions failed to safeguard investors' money as required by European laws. According to the report, the lawsuit, which will be filed in early March in a Luxembourg court, estimate damages for those being represented by Deminor between EUR250 and EUR300 million but could rise to more than EUR1 billion if one counts all investors who have contacted Deminor. Before filing the lawsuit, Deminor will first take legal action this week to obtain documents from Luxembourg funds which relate to its members' losses, Reuters notes. HSBC, UBS Linked to US$3.2BB Madoff Losses As reported in the Troubled Company Reporter-Europe on Jan. 16, 2009, Bloomberg News said HSBC and UBS may be liable for as much as US$3.2 billion of losses linked to Mr. Madoff's firm for serving as financial custodians at funds in Luxembourg and Ireland. According to Bloomberg News, financial regulators in Luxembourg and Ireland have said in separate statements that custodians retain responsibility for monitoring and supervising funds, even if assets are placed with a third party. Those looking to recoup money would have to prove the banks failed to fulfill their duties, according to nine lawyers surveyed by Bloomberg News. However, Bloomberg News related Paul Mousel, co-head of the financial services practice at law firm Arendt & Medernach in Luxembourg, who is representing both banks, said HSBC and UBS's custodian roles for the Luxembourg funds are limited because they were set up by investors specifically looking to place money with Mr. Madoff. "The arrangements that were put in place from the beginning are arrangements that gave to the custodian a very, very, very small role to play, especially regarding the safekeeping of the securities, which allegedly would have been purchased by the investors' moneys," Mr. Mousel was quoted by Bloomberg News as saying. HSBC said in a December 15 press statement it has around US$1 billion in potential exposure through financing provided to a small number of institutional clients who invested in funds with Mr. Madoff's firm. UBS meanwhile said it doesn't have material exposure to Mr. Madoff's firm and declined to comment on the liability issue, Bloomberg News related. Shock Bank Medici is "very shocked to be a direct and indirect victim of the fraudulent actions of Mr. Madoff," the bank said in a January 22 statement on its Web site. In that same statement, the bank denied rumors that it is bound to close down within weeks. According to the statement, the bank's Management Board is emphasizing that the bank continues to operate under its banking license and that there is no reason for this license to be revoked. The bank remains solvent and is continuing with its operations, the statement added. Banco Santander Offers EUR1.38 Bln to Madoff-Exposed Clients As reported in the Troubled Company Reporter-Europe on Jan. 29, 2009, Banco Santander SA offered EUR1.38 billion to its private banking clients who were affected by the Madoff scam through investments in its subfund, Optimal Strategic US Equity fund. The Spanish bank's offer gives private banking clients the right to exchange their investments in Optimal Strategic for preferred securities with an annual coupon of 2% and callable by Santander after 10 years. Charles Penty and Katherine Burton at Bloomberg News said in a Jan. 28 report that Santander's settlement offer may elicit similar proposals from firms such as Bank Medici, the Vienna-based firm that funneled US$3.2 billion to Madoff, the most among European banks, and Geneva-based Union Bancaire Privee, with US$700 million. "Other banks are going to see this and customers are going to say, 'What about us? Are you going to make a similar offer to us?'" Marvin Pickholz, a litigation attorney at Duane Morris in New York and former U.S. Securities and Exchange Commission enforcement official, was quoted by Bloomberg News as saying. The bank said December 14 it has EUR2.33 billion exposure to the Madoff scam, of which EUR2.01 billion belong to institutional investors and international private banking customers. The remaining EUR320 million, the large majority of which are structured products partially indexed to the performance of Optimal Strategic, are part of the investment portfolios of the bank's private banking customers in Spain, who are qualifying investors. Santander said it also has a proprietary position of EUR17 million through another investment fund. Class Action Suit Various reports said investors sued Banco Santander last month in U.S. Federal court in Miami alleging gross negligence and breach of fiduciary duty. According to the Associated Press, the lawsuit, which is seeking class-action status, contends there was a "plethora of red flags" that should have alerted the bank that Madoff was running what the lawsuit says was Ponzi scheme. "Many clients have lost all their money on this financial scandal, money they had earlier deposited with the bank that they trusted," The Wall Street Journal quoted Luis Bericat, a lawyer at Cremades & Calvo-Sotelo, as saying. The law firm is representing dozens of Santander clients who lost money through products invested with Mr. Madoff, the Journal said. Santander meanwhile said it "has acted at all times with the due diligence in the management of its clients' investments in the Optimal Strategic fund." "The Santander Group would like to note that Madoff Securities was a broker dealer authorized, registered and supervised by the SEC and was also authorized as an investment advisor by the U.S. Financial Industry Regulatory Authority (FINRA). As the SEC has publicly noted, Madoff Securities was regularly subject to inspections by this supervisory agency during the last number of years, without its reputation or standing being at all doubted by the market or the U.S. supervisory authorities," the bank said in a January 27 statement. The bank said it is considering appropriate legal actions. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC was a market maker in US stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were at least US$50 billion Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. MUELLER & GARTNER: Claims Registration Period Ends February 25 -------------------------------------------------------------- Creditors owed money by OHG Mueller & Gartner (FN 7068w) have until Feb. 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Michael Neuhauser Esslinggasse 7 1010 Wien Austria Tel: 01/90 333 Fax: 01/90 333 55 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on March 11, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Korneuburg Austria Headquartered in Grossenzersdorf, Austria, the Debtor declared bankruptcy on Jan. 9, 2009, (Bankr. Case No. 36 S 2/09z). ============= B E L G I U M ============= FORTIS INSURANCE: Moody's Affirms Insurance Strength Rating ----------------------------------------------------------- Moody's Investors Service affirmed the A2 insurance financial strength rating of Fortis Insurance Belgium as well as the Baa2 long term issuer rating of Fortis SA/NV and Fortis N.V. and placed the ratings under review with direction uncertain. Previously, the insurance company's rating was on review for possible upgrade while the holding companies' ratings were on review for possible downgrade. Debt ratings issued by Fortis Finance, Fortis Hybrid Financing and Fortfinlux benefiting from subordinated and preferred guarantees from the joint holding companies were also affirmed at Baa3 and Ba1 respectively, while Fortis Group's CP rating was affirmed at P-2. All these ratings were also placed under review with direction uncertain. In addition, Moody's announced that it affirmed the rating of the Convertible And Subordinated Hybrid Equity-linked Securities at Ba1, and placed the rating under review with direction uncertain. The rating action follows the announcement by the Belgian Prime Minister on January 30, 2009 that Fortis, BNP Paribas and the Belgian State agreed on a modification of the "Protocole d'Accord" signed by the three parties in October 2008. In particular, under the new agreement, BNP Paribas would purchase only 10% of Fortis Insurance Belgium from the Fortis Group (versus 100% initially planned). This revised agreement requires a formal consultation of Fortis' shareholders through a vote which will take place on the 11th of February 2009. Moody's mentioned that the rating action chiefly reflects the uncertainties around the final terms of the agreements that Fortis has reached with BNP Paribas and the Belgian government as well as their validity, and the subsequent uncertainties related to the ultimate structure of the new Fortis Group. The rating agency also mentioned that reduced disclosure of financial information from the companies and a necessary redefinition of their strategy have added to the uncertainties. Fortis Insurance Belgium In October 2008, Fortis Insurance Belgium's A2 IFSR was placed under review for possible upgrade, reflecting Moody's expectation at that time that the insurance company would benefit from implicit and explicit support coming from BNP Paribas (rated Aa1 for senior debt by Moody's). Since the revised agreement proposed to the vote of Fortis' shareholders no longer includes the majority ownership of the insurance company by BNP Paribas, the likelihood of an upgrade of Fortis Insurance Belgium has decreased. However, Moody's notes that if Fortis' shareholders did not accept the new agreement reached with BNP Paribas, the initial agreement would still be a binding contract for all the counterparts, and the French banking group would have the opportunity to purchase 100% of Fortis Insurance Belgium, potentially providing positive rating pressure. In contrast, even if the shareholders validated the revised plan, substantial uncertainties would remain in Moody's opinion. For example, the impact of volatile financial markets in 2008 and early 2009 on the company's results and capitalization is still uncertain, while the strategy of the company and of the Group has to be redefined. Therefore, Moody's commented that the review on Fortis Insurance Belgium is likely to continue after Fortis' shareholders' vote on the 11th of February. In addition to reflecting and evaluating the impact of the shareholder vote on Fortis Insurance Belgium's ownership, the review will also focus on the extent to which the financial strength of the insurance company has been affected by recent market turmoil as well as the future prospects for the company. Fortis Holding Companies Commenting on the ratings of Fortis SA/NV and Fortis N.V., Moody's said that the rating review, direction uncertain, largely reflected the similar review at Fortis Insurance Belgium. In particular, the possibility that the Belgian insurance company could remain within the Fortis Group has reduced the likelihood of a further downgrade of the company. Under this scenario, Fortis SA/NV and Fortis NV would be holdings of a pure insurance group. Nonetheless, Moody's also indicates that the holding companies will still be strongly linked with Fortis Bank SA/NV either through balance sheet items or off-balance sheet items (eg through debts issued to Fortis Bank, continuation of a mechanism to compensate the impact of the CASHES in Fortis Bank's balance sheet, potential investment in a SPV gathering structured assets from Fortis Bank), and this will be the case under all the probable scenarios. Therefore, Moody's will review the impact of these items on the ability for the Group to repay its obligations, including the most junior securities as those issued by Fortis Hybrid Financing and Fortfinlux. Moody's expects to conclude its review on the holding companies' ratings once it gets more clarity around the final structure of the Group as well as around the strategy of the Group. The review will also focus on the financial strength of the operating companies that will remain within the Group and on the specific financial situation of the holding company. Cashes Commenting more specifically on the rating of the CASHES, Moody's mentioned that despite a guarantee for this instrument currently provided by Fortis Bank SA/NV (A1 senior debt rating, under review for possible upgrade), the security includes trigger events which refer to the situation of Fortis' holding companies, and therefore the current rating of these securities continues to follow the holding companies' ratings. These ratings have been affirmed and placed under review with direction uncertain: - Fortis Insurance Belgium -- insurance financial strength rating at A2 - Fortis SA/NV -- long term issuer rating at Baa2 - Fortis N.V. - long term issuer rating at Baa2 - Fortis Finance N.V. -- backed senior unsecured debt rating at Baa2 - Fortis Finance N.V. -- backed senior unsecured MTN debt rating at Baa2 - Fortis Finance N.V. -- backed subordinated MTN debt rating at Baa3 - Fortis Finance N.V. -- backed junior subordinated MTN debt rating at Baa3 - Fortis Finance N.V. -- backed commercial paper at P-2 - Fortis Hybrid Financing -- backed junior subordinated debt rating at Ba1 - Fortis Hybrid Financing -- backed preferred stock debt rating at Ba1 - Fortfinlux S.A. -- backed junior subordinated debt rating at Ba1 - Fortis Bank SA/NV -- CASHES at Ba1 The date of the prior rating action on Fortis Insurance Belgium and Fortis Group's ratings was on October 7, 2008, when Moody's downgraded Fortis' ratings after the announcement of the sale of its main operating companies. Headquartered in Brussels, Belgium and in Utrecht, the Netherlands, Fortis Group had total assets of EUR974.3 billion and reported shareholders' equity (including minority interest) of EUR30.4 billion as of June 30, 2008. PR PHARMACEUTICALS: Biotech to Write Down EUR997,706 ---------------------------------------------------- According to Bloomberg News, KBC Private Equity Fund Biotech will write down EUR997,706 on its investment in PR Pharmaceuticals Inc. after the company filed for Chapter 11. Biotech, Bloomberg relates, said in a statement on its Web site the writedown includes both its equity investment as well as a loan. Colorado-based PR Pharmaceuticals, Inc. -- http://www.prpharm.com/aboutUs.asp?id=43-- is a privately held biopharmaceutical company focused on developing, bioactive compounds in sustained-release formulations. The company specializes in injectable, biodegradable formulations and has a significant Intellectual Property position in the encapsulation of large molecules such as proteins and peptides as well as encapsulation of classic small molecules into biodegradable microparticles. PRP is applying compelling and patented technology to create a diverse range of candidate pharmaceutical products to address unmet medical needs. PR Pharmaceutical, Inc., filed for Chapter 11 on Nov. 14, 2008 (Bankr. D. Col., Case No. 08-28223). Judge Sidney B. Brooks handles the Chapter 11 case. Peter J. Lucas, Esq., at Appel & Lucas P.C., in Denver, Colorado. It estimated assets and debts of US$10 million to US$50 million each. ============= D E N M A R K ============= * DENMARK: Obtains EU Clearance for US$18 Bln Bailout ----------------------------------------------------- The Miami Herald reports Denmark has received EU clearance for a US$18 billion rescue package for banks and mortgage lenders that aims to stimulate lending to companies and households. According to the report, EU Competition Commissioner Neelie Kroes said the program would counter the risk of a Danish credit crunch, noting Denmark had added enough safeguards to the bailout plan that would limit any antitrust problems. The report relates Denmark will spend up to EUR13.5 billion (US$17.3 billion) injecting cash into banks in return for hybrid shares. Denmark says it is prepared to help banks raise their tier 1 capital ratio -- a measure of a bank's health -- to 12 percent, the report adds. =========== F R A N C E =========== ALCATEL-LUCENT: Posts EUR3.89 Bln Fourth Quarter 2008 Net Loss --------------------------------------------------------------- Alcatel-Lucent reported financial results for the fourth quarter 2008. Asset Impairment Charges Alcatel-Lucent said during the fourth quarter, the deterioration of the economic environment and the drop in the company's market capitalization led to a thorough re-assessment of the carrying value of goodwill and other intangible assets on its balance sheet. The re-assessment of the company's near-term outlook taking into account more conservative growth assumptions for the telecommunications equipment and related services market in 2009, coupled with the decision to streamline the company's portfolio and with the use of a higher discount rate led to an asset impairment charge of Euro (3.910) billion. This is reflected in the fourth quarter net loss (group share) of Euro (3.892) billion or Euro (1.72) per diluted share (USD (2.39) per ADS). For full year 2008, Alcatel-Lucent booked total asset impairment charges of Euro (4.725) billion, reflected in the full year net loss (group share) of Euro (5.215) billion or Euro (2.31) per share (USD (3.22) per ADS). Net Debt The net (debt) cash position was Euro (389) million as of December 31, 2008, compared with Euro (600) million as of September 30, 2008. The sequential reduction in net debt of Euro 211 million primarily reflects the higher level of operating profitability this quarter and a positive contribution from Pensions and OPEB due to Section 420 transfers (Euro +99 million), partially offset by cash outflow related to restructuring (Euro (172) million). Alcatel-Lucent said it delivered solid operational performance in the fourth quarter, enabling it to meet its guidance on all three of the financial metrics it had indicated for 2008. Revenue Guidance Alcatel-Lucent said the reported revenue decline of 4.5% in 2008 - within the indicated range of low to mid single-digit � is largely attributable to the shift in currencies. At constant currency exchange rates, revenue fell by 1.1% in 2008, in an economic environment that grew considerably more challenging in the latter part of the year. At constant currency exchange rates, fourth quarter revenue declined 7.5% year-over-year and increased by 16.9% sequentially. As anticipated, carrier revenues were impacted by some capital expenditure constraints in the fourth quarter, notably in fixed and mobile access. This was partially offset, however, by the strong performance of other carrier segments such as IP routing, submarine and Next Generation Networks, the resilience of the Enterprise business and solid growth in Services. Operating Profitability Adjusted gross margin came in at 34.1% for the full year, at the lower end of the mid-thirties range which had been indicated, after a slight sequential improvement in the fourth quarter. Coupled with the reduction in operating expenses, this led to an adjusted operating margin of 2.7% for 2008, within the low to mid single-digit guidance range which had been indicated at the start of the year. The fourth quarter adjusted operating profit reached 6.0% including the net positive impact of 0.2percentage point from one-time items. Cash Flow Target At year end 2008, net debt was brought down to Euro (389) million, below the end-June level of Euro (415) million as indicated, thanks to an operating cash flow of Euro 658 million in the fourth quarter, the highest since the close of the merger. The divestiture of the stake in Thales for Euro 1.6 billion is proceeding on plan. With cash and marketable securities of Euro 4.6 billion and the availability of the Euro 1.4 billion credit line, Alcatel-Lucent said it remains adequately funded. Ben Verwaayen, CEO, commented: "In the fourth quarter, we did what we said we were going to do. I am encouraged by our operating performance, measured by our ability to achieve our top-line, operating margin and cash flow targets. The asset impairment charge that severely impacted our bottom line was made necessary by the drastic deterioration of the global economic outlook during the fourth quarter as well our decision to shift to a more focused portfolio. With an improving balance sheet, adequate funding, a new strategy in place and a clear roadmap to profitability, we are committed to executing on our plans to deliver better solutions and services to our customers and better returns to our shareholders." About Alcatel-Lucent SA France-based Alcatel-Lucent SA (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. In the field of fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications and services, the company offers the end-to-end product offerings that enable communications services for residential, business customers and customers. It has operations in more than 130 countries. It has three segments: Carrier, Enterprise and Services. The Carrier segment is organized into seven business divisions: IP, fixed access, optics, multicore, applications, code division multiple access networks and mobile access. Its Enterprise business segment provides software, hardware and services that interconnect networks, people, processes and knowledge. Its Services business segment integrates clients' networks. In October 2008, the company completed the acquisition of Motive, Inc. * * * As reported in the Troubled Company Reporter-Europe on Dec. 17, 2008, Standard & Poor's Ratings Services placed its 'BB-' long- term corporate credit rating on French telecom equipment and services supplier Alcatel Lucent on CreditWatch with negative implications. S&P also placed the 'BB-' long-term corporate credit rating on subsidiary Lucent Technologies Inc. and all issue ratings on both companies on CreditWatch with negative implications. At the same time, S&P affirmed the respective 'B' and 'B-1' short- term ratings on Alcatel Lucent and Lucent Technologies. * FRANCE: Unveils EUR26 Bln Economic Stimulus Plan -------------------------------------------------- BBC News reports French Prime Minister Francois Fillon has unveiled a EUR26 billion (US$33.1 billion; GBP23.5 billion) economic stimulus plan. According to the report, the French stimulus plan is split into three parts: EUR11 billion to help businesses improve their cashflows; EUR11 billion of direct state investment; and EUR4 billion of investment by state-owned firms for modernising rail infrastructure, energy and the postal service. The government, the report relates, expects that the stimulus package will produce economic growth of around 1.3%. However, French Finance Minister Christine Lagarde, as cited by the report, said this would not be enough to offset the impact of the global downturn this year. The report recalls Ms. Lagarde said Monday France would slip into recession "at some point". The IMF, the report discloses, has forecast a contraction in the French economy of 1.9% this year. ============= G E R M A N Y ============= BESTPOOL BETEILIGUNGS: Claims Registration Period Ends March 4 -------------------------------------------------------------- Creditors of Bestpool Beteiligungsgesellschaft mbH have until March 4, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 25, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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: Frank M. Welsch Barkeystrasse 30 33330 Guetersloh Germany The District Court opened bankruptcy proceedings against the company on Jan. 19, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bestpool Beteiligungsgesellschaft mbH Attn: Horst Menkenhagen and Wolfgang Runde, Managers Bahndamm 17 33803 Steinhagen Germany CONTINENTAL AG: Fitch Downgrades Issuer Default Rating to 'BB' -------------------------------------------------------------- Fitch Ratings has downgraded Continental AG's Long-term Issuer Default and senior unsecured ratings to 'BB' from 'BB+'. The Short-term IDR was affirmed at 'B'. At the same time the Long- term IDR and senior unsecured ratings have been removed from Rating Watch Negative. The Outlook on the Long-term IDR is Negative. The downgrade reflects rapidly weakening auto markets amid the severe global recession which could further negatively impact Continental's future performance and cash flow generation, in turn jeopardizing the group's plan for swift de-leveraging. As a result, Fitch estimates that the lease-adjusted leverage could reach around 4x at FYE09. At the same time, Fitch acknowledges Continental's measures to support its historically strong free cash flow, including a sizable cost-cutting program and the reduction or postponement of capital expenditure, R&D spending and dividends. The rating action also takes into account Fitch's increasing concerns about the deteriorating credit quality of the group's major shareholder, Schaeffler KG, in light of its high indebtedness associated with the acquisition of Continental shares. While the investment agreement between Schaeffler and Continental remains in force, Fitch notes that the risk of Continental's credit profile being negatively affected by the uncertainty over its shareholder has increased markedly. In the wake of Schaeffler's acquisition Fitch also notes Continental's plan to separate its rubber business, including the relatively stable and cash-generative tyre business, into a separate entity. On 8 January 2009, Schaeffler completed the acquisition of Continental with a 49.9% stake. To improve its financial flexibility Schaeffler is seeking state support and/or external investors, the outcome of which is uncertain in current difficult financial markets. Fitch notes that Schaeffler has committed to limit its stake in Continental to 49.99% until 2012 by transferring the additional tendered shares (approximately 40%) to banks and to support Continental's existing strategy. Fitch will continue to closely monitor Schaeffler's moves. Continental has successfully renegotiated the contractual terms of its main credit facilities (approximately EUR11.8 billion) to allow for more leeway in its financial leverage covenants. Although this has resulted in higher interest margins, Continental does not expect overall interest cost to rise due to lower base interest rates. As a result, short-term liquidity risks have reduced considerably, allaying Fitch's concern that Continental's weakening operating performance would lead to a breach of financial covenants. This has contributed to the removal of Watch Negative. The Negative Outlook reflects Continental's ongoing sizable refinancing risk for its EUR3.5 billion tranche maturing in August 2010. This is partly mitigated by its EUR2.5 billion revolving credit facility (committed until 2012) and cash of nearly EUR1 billion as at end-Q308. The group stated in January 2009 that its available liquidity exceeded EUR3.5 billion. Continental is one of the five largest automotive suppliers globally with targeted sales of EUR25 billion in FY08 and an adjusted EBIT margin of 7.5%-8% (before VDO purchase price amortization and integration and restructuring costs). It focuses on brake systems, vehicle electronics, power train and chassis systems, engineering elastomers, and tyres. CONTINENTAL GMBH: Claims Registration Period Ends March 6 --------------------------------------------------------- Creditors of Continental GmbH have until March 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on April 7, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany 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: Reinhard Titz Gertrudenstrasse 3 20095 Hamburg Germany The District Court opened bankruptcy proceedings against the company on Jan. 19, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Continental GmbH Attn: Hans-Dieter Ribke, Manager Peutestrasse 51 A 20539 Hamburg Germany IMC SERVICE: Claims Registration Period Ends March 2 ---------------------------------------------------- Creditors of IMC Service GmbH have until March 2, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode 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: Sebastian Ludolfs Lange Strasse 30 29664 Walsrode Germany Tel: (0 51 61) 4 81 00-0 Fax: (0 51 61) 4 81 00-27 E-mail: info@ludolfs-insolvenz.de Web site: www.ludolfs-insolvenz.de The District Court opened bankruptcy proceedings against the company on Jan. 21, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IMC Service GmbH Attn: Gerrit Moret, Manager Sottrumer Weg 14 27356 Rotenburg/Wuemme Germany LEHMAN BROTHERS: Seeks to Sell LBT Varlik to Vector --------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliates seek the authority from Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to settle certain rights under loan agreements and sell certain of their rights under those agreements to Vector Holdings S.a.r.l. LBT Varlik Yonetim Anonim Sirketi, an indirect, non-Debtor subsidiary of Lehman Brothers Holding Inc., is the party to the loan agreements. LBT's assets include an asset management license, a non-performing loan portfolio with a book value of about US$66,200,000, and a cash balance of about US$2,600,000. LBT has liabilities for US$69,400,000 under two loan agreements with Lehman Brothers Bankhaus AG, another indirect, non-Debtor subsidiary of LBHI, incorporated in Germany. Bankhaus was later placed in an insolvency proceeding in Germany in November 2008. Bankhaus participated 100% of its interest in the Loan Agreements to Lehman Commercial Paper Inc. prior to LCPI's Chapter 11 case. The lack of formal documentation of the participation, however, has resulted in a dispute as to the ownership of the rights, title, interest and benefits in relation to the receivables under the Loan Agreements, the Debtor tell the Court. The Debtors have decided to market LBT for sale to a third party and determined that an offer by Vector provided the greatest recovery for LCPI's estate and creditors. Vector offered 56,099,995 Turkish Lira in exchange for the sale and assignment of all of LCPI's rights, title and interest in the Receivables. Vector's purchase of the Receivables from LCPI is conditioned, however, on the consummation of (i) Bankhaus' assignment of its interest in the receivables to LCPI, and (ii) the sale of the equity interests in LBT to Vector pursuant to a Share Sale and Purchase Agreement dated January 9, 2009. The Debtors now ask the Court to: (a) authorize and approve LCPI's purchase and acceptance from Bankhaus of any interest that Bankhaus may have in the Receivables; and (b) authorize and approve LCPI's assignment and sale of the Receivables to Vector, free and clear of any liens, claims, encumbrances, and other interests. The Debtors maintain that they are not aware of any liens, claims, encumbrances or other interests held by any other party in respect of the Receivables. They further maintain that LCPI and Vector negotiated the Assignment Agreement at arms' length and in good faith. Hearing on the motion is set for February 25, 2009 at 10 a.m. (Eastern Time). Written objections must be filed no later than February 20, 2009 at 4:00 p.m. (Eastern Time). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers led in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offered a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On Sept. 19, 2008, the Honorable Gerard E. Lynch, Judge of the United States District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act in the case captioned Securities Investor Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV- 8119 (GEL). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, on Sept. 22 reached an agreement to purchased Lehman Brothers Holdings, Inc.'s operations in Europe and the Middle East less than 24 hours after it reached a deal to buy Lehman's operations in the Asia Pacific for US$225 million. Nomura paid only US$2 for Lehman's investment banking and equities businesses in Europe, but agreed to retain most of Lehman's employees. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion ($33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) M & K VERMIETUNGS: Claims Registration Period Ends February 24 -------------------------------------------------------------- Creditors of M & K Vermietungs und Verwaltungs GmbH have until Feb. 24, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on April 7, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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: Henning Schorisch Wasastrasse 15 01219 Dresden Germany Web site: www.hww-kanzlei.de The District Court opened bankruptcy proceedings against the company on Jan. 21, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M & K Vermietungs- und Verwaltungs GmbH Attn: Silke Passler, Manager OT Cossebaude Hauptstr. 4d 01462 Dresden Germany MAERKLIN HOLDING: Files for Bankruptcy; Mulls Restructuring ----------------------------------------------------------- The Associated Press reports Maerklin Holding GmbH on Wednesday filed for bankruptcy protection from creditors at a court in Goeppingen after failing to secure new credit from banks. The court, the report relates, appointed Michael Pluta as bankruptcy administrator. Maerklin, as cited by the report, said the banks declined to to extend credit lines for the company "despite intensive negotiations". The company, which was acquired by British investor Kingsbridge Capital and investment bank Goldman Sachs in 2006, noted operations would continue unaffected, the report says. The report recounts Maerklin boss Dietmar Mundil said in a statement its managers intend, in consultation with its bankruptcy administrator, "to restructure our traditional company with its cult status, with the instruments of German insolvency law, and establish it permanently in the market". The company, the report recalls, earlier closed a plant in Sonneberg, Germany that employed 400 people as part of a restructuring process. However, according to the company, measures taken so far "have not made an impact in the originally planned cost and time frame", the report adds. Citing German weekly Wirtschaftswoche, Bloomberg News discloses the company made a net loss of about EUR20 million in 2008, while revenue stood at EUR128 million (US$165 million). It owed "at least" EUR50 million to banks including Landesbank Baden- Wuerttemberg. Based in Goeppingen, Germany, Maerklin Holding GmbH is a model railway maker. The company employs 650 people in Goeppingen, 60 in Nuremberg and 600 in Gyor, Hungary. MAGNACHIP SEMICONDUCTOR: S&P Withdraws 'SD' Corporate Rating ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'SD' long-term corporate credit rating on MagnaChip Semiconductor LLC, its 'CC' rating on the company's US$100 million revolving credit facility, and its 'D' ratings on the company's US$200 million notes, US$300 million notes, and US$250 million subordinated notes, at the company's request. MAKE TELEMARKETING: Claims Registration Period Ends March 5 ----------------------------------------------------------- Creditors of Make Telemarketing GmbH have until March 5, 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 March 26, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Mainz Hall 174 Building B Ernst-Ludwig Strasse 7 55116 Mainz Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans W. Goetsch Libellenweg 4 55128 Mainz Germany Tel: 06131/3337960 Fax: 06131/3337961 The District Court opened bankruptcy proceedings against the company on Jan. 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Make Telemarketing GmbH Attn: Kanun Koc, Manager Steingasse 3-9 55116 Mainz Germany QIMONDA AG: To Close Virginia Plant; 1,500 Jobs Affected -------------------------------------------------------- Nicola Leske and Michael Shields at Reuters report that Qimonda AG on Tuesday said it will close its plant in Virginia. Reuters discloses around 1,500 jobs will be affected by the move. Qimonda executive board member Thomas Seifert, as cited by Reuters, said the closure of the plant in Sandston near the Virginia state capital of Richmond "was unavoidable to improve production efficiency and to focus on the next generation of chips" called buried wordline technology. In a Feb. 3 release, Qimonda said given the current macroeconomic climate, it is not possible to finance a conversion of the facility for buried wordline technology production. According to Qimonda, no final decisions have yet been taken concerning the future structure of the company, including whether those of its businesses that can be continued will be held through Qimonda AG or placed in a new company owned by new investors. However, it noted in the latter case, or if investors cannot be found to finance the continuation of Qimonda's businesses, Qimonda AG would likely be liquidated. In a separate report, Reuters relates European Union Industry Commissioner Guenter Verheugen told German daily Saechsische Zeitung in an interview on Tuesday that he sees no chance to save Qimonda with the tools available to the EU. "Nobody can save a company whose owner does not want to save it," Mr. Verheugen told the paper. "If a company no longer believes in a location, then the die is cast in a free market economy." Mr. Verheugen added that in general, public subsidies must not be spent in order to bail out companies, Reuters recounts. Reuters recalls Saxony's Economy Minister Thomas Jurk earlier asked for EU help for the European chip industry. As reported in the Troubled Company Reporter on Feb. 4, 2009, citing Bloomberg News, Qimonda will shut at the end of March unless an investor is found. The company is having its first contact with potential investors and will close by the end of March if an investor isn't found, Jaffe's spokesman, who declined to be named, told Bloomberg News in a telephone interview from Munich. As reported in the Troubled Company Reporter, Qimonda filed an application with the local court in Munich, Germany, on January 23, 2009, to open insolvency proceedings. Their goal is to reorganize the companies as part of the ongoing restructuring program. According to Bloomberg News, Qimonda filed for insolvency after a plan announced in December for a loan of EUR325 million (US$418 million) from the German state of Saxony, Infineon Technologies AG, Europe's second-largest maker of semiconductors, and an unidentified Portuguese bank wasn't completed in time. Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. RUWEL GMBH: Files Insolvency Amid Auto Slump; 600 Jobs at Risk -------------------------------------------------------------- Christoph Hammerschmidt at EE Times Europe reports that Geldern, Germany-based PCB manufacturer Ruwel GmbH has filed insolvency amid the auto industry slump, putting about 600 jobs at risk. EE Times, citing media releases, discloses the company achieved 58 percent of its sales with customers associated to the automotive value chain, making it vulnerable to the current crisis. EE Times however notes production continues despite the insolvency. EE Times recalls U.S. financial investors Bear Stearns, Cargill Value Investment and Blue Bay Assets acquired the company, which has a manufacturing capacity of about 1.5 million PCS per year, in June 2006. SENATOR LINES: To Be Liquidated Amid Shipping Market Slump ---------------------------------------------------------- South Korea-based shipping line Hanjin Shipping Co. plans to liquidate its German unit, Senator Lines GmbH, citing the slumping shipping market and the global economic recession, Trading Markets reports citing Yonhap. The report relates Hanjin saw its fourth-quarter earnings drop 39% as the economic slump sapped demand for shipments. TRI PLEX: Claims Registration Period Ends March 10 -------------------------------------------------- Creditors of Tri Plex Marketing GmbH have until March 10, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9.15 a.m. on April 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuerzburg Room 14 Second Stock Tiepolostr. 6 Wuerzburg 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: Ulrich N. Bildl Steinbachtal 2 b 97082 Wuerzburg Germany Tel: 0931/991560 The District Court opened bankruptcy proceedings against the company on Jan. 21, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tri Plex Marketing GmbH Muehlstr. 10 97253 Gaukoenigshofen Germany Attn: Kurt Faulhaber Rechtsanwalte Bendel & Partner Hofstr. 3 97070 Wuerzburg Germany ============= H U N G A R Y ============= * HUNGARY: Liquidation Figures to Reach 17,000 in 2009, Opten Says ------------------------------------------------------------------ Citing Opten company information service, Portfolio.hu reports that more than 17,000 companies in Hungary are expected to be liquidated in 2009. Csorba however said the number of liquidations in 2009 could reach 20,000, the report relates. According to the report, liquidation proceedings were launched against 1,400 companies in January this year, the highest monthly data ever. The report states 970 companies were wound up in January 2009 compared to "only" 810 companies in 2008 on monthly average. Citing Opten's data, the report recounts a total of 11,504 companies were liquidated in 2008. Opten, the report discloses, attributed sharp increase in the number of liquidations to the structure of Hungarian businesses, which have an extremely low profit margin and inferior capitalization. It also noted many companies are not diversified in respect either of their product portfolio or the number of their clients. ============= I C E L A N D ============= BAUGUR GROUP: Applied for Moratorium in Reykjavik ------------------------------------------------- Baugur Group hf ("the Company") and a number of its wholly owned subsidiaries (together, "the Group"), including BG Holding ehf, on Wednesday, February 4, applied to the District Court in Reykjavik to enter into the moratorium process. Baugur said this action has been taken in order to protect the group's assets as well as the interests of all creditors. The Board of the company unanimously resolved to take this action following Tuesday's decision by Landsbanki to discontinue discussions regarding a potential restructuring of the Group. Baugur on Verge of Administration Tom Braithwaite, Sarah O'Connor, Lucy Killgren and Maggie Urry at The Financial Times report Baugur is at risk of going into administration and that Landsbanki, which is owed GBP1 billion, is likely to take control of the company at some stage. The FT relates according to people who have seen Baugur's books, there is little or no equity in the business as its balance sheet is weighed down by the pile of debt. Citing Jon Asgeir Johannesson, chairman of Baugur, the report discloses the group's assets are likely to be sold off to interested bidders such as retail entrepreneur Sir Philip Green or a private equity firm such as Alchemy Partners. Individual Retailers Not Affected Individual retailers in which Baugur has a stake, including House of Fraser and Mosaic Fashion, maintained they were not affected by Landsbanki's decision to withdraw support for the company, the FT says. Landsbanki, the FT notes, also supported the claim. Mosaic In Talks Over Long-Term Funding Mosaic, which is 49% owned by Baugur, said talks with Kaupthing Bank over long-term fund continue, the FT states. Mosaic, the FT says, needs financial support to continue in business and is willing to sell assets to survive. About Baugur Group Baugur Group -- http://baugur.com/-- is an international investment company in the retail and fashion sectors in the UK, the USA and Scandinavia. Companies related to Baugur employ some 53,000 people worldwide in over 3,700 stores with a total turnover of GBP5.0 billion. Among Baugur's principal investments are the supermarket chain Iceland, the toy retailer Hamleys, the jewellery chain Goldsmiths, fashion chains Whistles and Jane Norman, fashion company Mosaic Fashions, renowned UK department store chain, House of Fraser, the famous Danish department store chain Magasin du Nord and Illum, one of Denmark's largest department stores. =================== K A Z A K H S T A N =================== AINA LINE: Proof of Claim Deadline Slated for March 13 ------------------------------------------------------ LLP Aina Line Project Ltd. has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Aina Line Project Ltd. Bogenbai batyr/Zenkov St. 81/36 Almaty Kazakhstan Tel: 8 (7272) 58-40-50 AQUA STROY: Creditors Must File Claims by March 13 -------------------------------------------------- LLP Construction Company Aqua Stroy has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Construction Company Aqua Stroy Micro District Severo-Vostok, 28-39 Uralsk West Kazakhstan Kazakhstan BIBARS LLP: Claims Filing Period Ends March 13 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Bibars insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl St. 9 Karaganda Kazakhstan DANKAM LLP: Creditors' Proofs Claim Due on March 13 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Dankam insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana Micro District Molodejny, 8-38 Astana Kazakhstan Tel: 8 (7172) 22-86-26 GEO PROJECT-2003: Claims Registration Ends March 13 --------------------------------------------------- LLP Aktobe Geo Project-2003 has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Aktobe Geo Project-2003 Maresyev St. 91-9 Aktobe Aktube Kazakhstan MILESTONE TRADING: Proof of Claim Deadline Slated for March 13 -------------------------------------------------------------- LLP Milestone Trading Company has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Milestone Trading Company Tulebaev St. 82-10 Almaty Kazakhstan NURLY LLP: Creditors Must File Claims by March 13 ------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Nurly insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: Department of Agriculture North Kazakhstan Petropavlovsk Konstitutsiya Kazakhstana St. 38 Kazakhstan ONE LLP: Claims Filing Period Ends March 13 ------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP One insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Office 203 Myzy St. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 57-83-69 RASH TECH: Creditors' Proofs of Claim Due on March 13 ----------------------------------------------------- LLP Construction Company Rash Tech Stroy has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Construction Company Rash Tech Stroy Kazybek Bi St. 164-48 Almaty Kazakhstan YANIS LLP: Claims Registration Ends March 13 -------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Yanis insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana Micro District Molodejny, 8-38 Astana Kazakhstan Tel: 8 (7172) 22-86-26 =================== K Y R G Y Z S T A N =================== PAK CASPIAN: Creditors Must File Claims by February 27 ------------------------------------------------------ LLC Pak Caspian Trade Links Pvt Ltd. has declared insolvency. Creditors have until Feb. 27, 2009, to submit proofs of claim at: LLC Pak Caspian Trade Links Pvt. Ltd. Bayalinov Str. 6 Bishkek Kyrgyzstan Tel: (+996 312) 27-29-62 ============= I R E L A N D ============= STARLING FINANCE: S&P Withdraws 'B-' Rating on EUR27.5 Mil. Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B-' credit rating on the EUR27.5 million floating-rate Deveron portfolio credit- linked notes series 2005-13 issued by Starling Finance PLC. The rating withdrawal follows early redemption of the notes in this deal. =========== R U S S I A =========== BALT-KREDO-BANK CJSC: Creditors May File Claims ----------------------------------------------- Creditors of CJSC Balt-Kredo-Bank Commercial Bank have to submit proofs of claims to: Minskaya St. 25 236040 Kaliningrad Russia BIZNES-STROY-INDUSTRIYA LLC: Claims Filing Deadline Set March 2 --------------------------------------------------------------- Creditors of LLC Biznes-Stroy-Industriya (Construction) have until March 2, 2009 to submit proofs of claims to: F. Gulyumov Temporary Insolvency Manager Post User Box 167 450105 Ufa-105 Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A76� 23217/2008�60�190. The Debtor can be reached at: LLC Biznes-Stroy-Industriya Avtodorozhnaya St. 31 Chelyabinsk Russia LUZSKIY WOOD: Creditors Must File Claims by March 2 --------------------------------------------------- Creditors of LLC Luzskiy Wood Enterprise (TIN 5077022260, PSRN 1085077000865) have until March 2, 2009 to submit proofs of claims to: A. Maltabar Temporary Insolvency Manager Post User Box 67 191023 Saint-Petersburg Russia The Arbitration Court of Moskovskaya will convene on May 18, 2009 to hear bankruptcy supervision procedure. The case is docketed under Case No. A41�27438/2008. The Debtor can be reached at: LLC Luzskiy Wood Enterprise Artelnaya St. Sharapova Okhota Serpukhivskiy Moskovskaya Russia MOSCOW INTEGRATED: Fitch Downgrades Issuer Default Rating to 'BB+' ----------------------------------------------------------------- Fitch Ratings has downgraded OJSC Moscow Integrated Power Company's Long-term foreign currency Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus). The Outlook on MIPC's Long-term IDR remains Negative. The agency has simultaneously downgraded MIPC's Short-term IDR to 'B' from 'F3' and downgraded the company's National Long-term Rating to 'AA(rus)' from 'AA+(rus)'. The Outlook on the National LT Rating has been revised to Negative from Stable. MIPC's National Short-term Rating is affirmed at 'F1+(rus)'. The rating actions reflect Fitch's downgrade of the City of Moscow's Long-term foreign and local currency ratings to 'BBB' from 'BBB+', and the downgrade of the city's Short-term rating to 'F3' from 'F2'. The City of Moscow's Long-term foreign and local currency ratings remain on Negative Outlook. MIPC is a heat generator and distributor in the Moscow region with a small power generation segment. It is 83% owned by the City of Moscow. The company operates independently of the city, collecting payment directly from customers through regulated tariffs. However, MIPC's ratings are linked to the city due to extensive support in several key areas, such as the company's investment program. SERGEYEVSKIY COAL LLC: Creditors Must File Claims by April 2 ------------------------------------------------------------ Creditors of LLC Sergeyevskiy Coal (TIN 2812007444) have until April 2, 2009 to submit proofs of claims to: Yu. Koshelev Insolvency Manager Office 17 50 let Oktyabrya St. 24/2 Blagoveshchensk 675000 Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A04�6540/08�11/464B. The Debtor can be reached at: LLC Sergeyevskiy Coal Sergeyevka Blagoveshchenskiy 675513 Amurskaya Russia SEVER-METAL LLC: Creditors Must File Claims by March 2 ------------------------------------------------------ Creditors of LLC Sever-Metal (TIN 1121011930) (Metallurgy, Foundry) have until March 2, 2009 to submit proofs of claims to: O. Zuyev Temporary Insolvency Manager Pechorskiy prospect 83-44 169900 Pechora Komi Russia The Arbitration Court of Komi will convene at 09:00 a.m. on May 14, 2009 to hear bankruptcy supervision procedure. The case is docketed under Case No. A29�10676/2008. The Court is located at: The Arbitration Court of Komi Ordzhonokidze St. 49a 167982 Syktyvkar Komi Russia The Debtor can be reached at: LLC Sever-Metal Sysolskoe shosse 15 167004 Syktyvkar Komi Russia SPETS-IN-STROY OJSC: Creditors Must File Claims by April 2 ---------------------------------------------------------- Creditors of OJSC Spets-In-Stroy (TIN 3128061517) (Construction) have until April 2, 2009 to submit proofs of claims to: P. Pozdnyakov Insolvency Manager Post User Box 16 Kosmonavtov St. 10 394038 Voronezh Russia The Arbitration Court of Belgorodskaya will convene at 10:10 a.m. on March 3, 2009 to hear bankruptcy proceedings. The case is docketed under Case No. A08�2405/08�31B. The Debtor can be reached at: OJSC Spets-In-Stroy Lenina St. 67 Staryy Oskol 309500 Belgorodskaya Russia STROY-CITY LLC: Creditors Must File Claims by March 2 ----------------------------------------------------- Creditors of LLC Stroy-City (TIN 7726524511) (Construction) have until March 2, 2009 to submit proofs of claims to: P. Shkuratovskiy Temporary Insolvency Manager B. Tishinskiy pereulok 38 123557 Moscow Russia The Arbitration Court of Moscow will convene at 11:30 a.m. on May 12, 2009 to hear bankruptcy supervision procedure. The case is docketed under Case No. A40�68288/08-44-232B. The Debtor can be reached at: LLC Stroy-City Office 2 Fruktovaya St. 7 117556 Moscow Russia TAMBOV-STROY LLC: Creditors Must File Claims by March 2 ------------------------------------------------------- Creditors of LLC Tambov-Stroy (Construction) have until March 2, 2009 to submit proofs of claims to: R. Stepunin Temporary Insolvency Manager Office 110 Sovetskaya St. 106a 392017 Tambov Russia The Arbitration Court of Tambov commenced bankruptcy supervision procedure. The case is docketed under Case No. A64-4068/08-10. The Debtor can be reached at: LLC Tambov-Story Stoiteley Blvd 2 Tambov Russia URENSKIY KHIM-LES-KHOZ: Creditors Must File Claims by March 2 ------------------------------------------------------------- Creditors of CJSC Urenskiy Khim-Les-Khoz (TIN 5235004475) (Forest Products) have until March 2, 2009 to submit proofs of claims to: Ye. Bogdanova Temporary Insolvency Manager Office 15 Velozavodskaya St. 9 115280 Moscow Russia The Arbitration Court of Nizhegorodskaya will convene at 1:00 p.m. on May 19, 2009 to hear bankruptcy supervision procedure. The case is docketed under Case No. A43�31086/2008, 33�204. The Debtor can be reached at: CJSC Urenskiy Khim-Les-Khoz Lenina St. 29 Uren' 606800 Nizhegorodskaya Russia VIKO LLC: Creditors Must File Claims by March 2 ----------------------------------------------- Creditors of LLC Viko (Non-Alcoholic Beverages Production) have until March 2, 2009 to submit proofs of claims to: P. Volkov Temporary Insolvency Manager Starostina St. 19 183071 Murmansk Russia The Arbitration Court of Murmanskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A42� 6315/2008. The Debtor can be reached at: LLC VIKO Office 226 S. Perovskoy St.17 183038 Murmansk Russia * Fitch Cuts Issuer Default Ratings of Four Russian Companies ------------------------------------------------------------- Fitch Ratings has downgraded the Long-term foreign currency Issuer Default Ratings of four Russian companies. The agency has simultaneously revised the Long-term foreign currency IDR Outlooks on two other Russian companies and affirmed their ratings. The rating actions follow Fitch's downgrade of Russia's foreign and local currency IDRs to 'BBB' from 'BBB+' respectively. The Outlooks on the sovereign Long-term IDRs remain Negative. A list of affected corporate ratings follows. Russian companies whose foreign currency ratings have been downgraded are: JSC Russian Railways (RZD) -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook remains Negative -- Long-term local currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook remains Negative -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Short-term local currency IDR: downgraded to 'F3' from 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook remains Stable -- National senior unsecured rating: affirmed at 'AAA(rus)' RZD's ratings are aligned with the sovereign's because the company is 100% state-owned and because of its strategic importance. Sukhoi Civil Aircraft JSC (SCAC) -- Long-term foreign currency IDR: downgraded to 'BB' from 'BB+'; Outlook remains Negative -- Long-term local currency IDR: downgraded to 'BB' from 'BB+'; Outlook remains Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Short-term local currency IDR: affirmed at 'B' -- Senior unsecured rating: downgraded to 'BB' from 'BB+' -- National Long-term rating: downgraded to 'AA-(rus)' (AA minus) from 'AA(rus)'; Outlook revised to Negative from Stable -- National Short-term rating: affirmed at 'F1+(rus)' SCAC's ratings are linked to the sovereign's because it is majority state-owned and because of its strategic importance. Federal Hydrogeneration Company HydroOGK (RusHydro) -- Long-term foreign currency IDR: downgraded to 'BB+' from 'BBB-' (BBB minus); Outlook remains Negative -- National Long-term rating: downgraded to 'AA(rus)' from AA+(rus)'; Outlook revised to Negative from Stable RusHydro's ratings are linked to those of Russia due to its state ownership, the strategic importance of the company to the state, and a degree of reliance by the company on investment funding from the state. OAO AK Yakutskenergo (YE) -- Long-term foreign currency IDR: downgraded to 'BB' from 'BB+'; Outlook remains Negative -- Long-term local currency IDR: downgraded to 'BB' from 'BB+'; Outlook remains Negative -- National Long-term rating: downgraded to 'AA-(rus)' (AA minus) from AA(rus)'; Outlook remains Negative YE's ratings are linked to those of Russia due to state ownership, the strategic importance of the company to the state, direct federal subsidisation, and its reliance on state-controlled banks for the majority of debt funding and liquidity. There will be a separate announcement for OJSC Moscow Integrated Power Company later on today. Russian companies whose foreign currency rating Outlooks have been revised and ratings affirmed are: OAO Gazprom (Gazprom) -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised to Negative from Stable -- Long-term local currency IDR: affirmed at 'BBB'; Outlook revised to Negative from Stable -- Senior unsecured rating: affirmed at 'BBB' Gaz Capital S.A.'s debt issuance programme: affirmed at 'BBB' Gazprom's ratings are based on its standalone profile, although its state ownership and the influence of the state on Gazprom's business environment and financial profile are factored into the ratings. OJSC OC Rosneft (Rosneft) -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook revised to Negative from Stable -- Long-term local currency IDR: affirmed at 'BBB-' (BBB minus); Outlook revised to Negative from Stable -- Rosneft Capital S.A.'s debt issuance program: affirmed at 'BBB-' (BBB minus) Rosneft's ratings benefit from the state's majority ownership as well as implied and historically demonstrated indirect support, which is particularly relevant for the company given its rapid and acquisition-driven growth. * Fitch Downgrades Issuer Default Ratings of 14 Russian Banks ------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Ratings of 14 Russian banks, four European banking subsidiaries of Russian Bank VTB and three Russian leasing companies by one notch; the IDRs of all of these entities remain on Negative Outlook. This action follows the downgrade of Russia's Long-term IDRs to 'BBB'/Negative from 'BBB+'/Negative and the Russia's Country Ceiling to 'BBB+' from 'A-' (A minus). The downgrades of ZAO Unicredit Bank, Absolut Bank, ZAO Raiffeisenbank, Orgresbank, CJSC Santander Consumer Bank, ZAO Citibank and Rosbank follow the downgrade of Russia's Country Ceiling. The Negative Outlooks on these banks' IDRs reflect the potential for further downgrades in the event of another downgrade of the Country Ceiling. The Country Ceiling of Russia captures transfer and convertibility risks and limits the extent to which support from the foreign shareholders of these banks can be factored into their Long-term foreign currency IDRs. Their Long- term local currency IDRs, where assigned, also take account of Russian country risks. ZAO Unicredit Bank is 100%-owned by UniCredit S.p.A. ('A+'/Negative); Absolut Bank is 95%-owned by Belgium-based KBC Bank ('A+'/Negative Outlook); ZAO Raiffeisenbank is 99.97 %-owned by Raiffeisen International Bank-Holding AG, which in turn is 68.5%-owned by Austria's Raiffeisen Zentralbank Osterreich AG (Support Rating '1'); Orgresbank is currently 91%-owned by Nordea Bank AB ('AA-' (AA minus)/Stable); CJSC Santander Consumer Bank is 100%-owned by Santander Consumer Finance ('AA'/Rating Watch Negative); ZAO Standard Bank is 100%-controlled by Standard International Holdings S.A. ('A-'(A minus)/Negative), the holding company for the international operations of Standard Bank Group Limited, whose main operating subsidiary is the Standard Bank of South Africa Limited ('A-'(A minus)/Negative); ZAO Citibank is 100%-owned by Citigroup Inc. ('A+'/Stable) via US-based subsidiaries; and Rosbank is 57.57%-owned by France's Societe Generale (rated 'AA-' (AA minus)/Negative). The Long- and Short- term IDRs and Support ratings of these banks reflect the high probability of support being forthcoming from their foreign majority shareholders, in case of need. The downgrades of Vnesheconombank, Sberbank, Bank VTB, Russian Agricultural Bank and Rosagroleasing reflect the deterioration in the government's ability to provide support, in case of need. The Russian state owns 77.5% and 60.3% (of ordinary shares), respectively, of Bank VTB and Sberbank. Russian Agricultural Bank and Rosagroleasing are fully owned by the government. Vnesheconombank is a state corporation established by the Russian Federation and was assigned the role of a national development bank by federal law in May 2007. The downgrades of Bank VTB North-West, Bank VTB24, VTB Leasing, VTB Bank (Austria), VTB Bank (France), VTB Bank Europe and Russian Commercial Bank (Cyprus) follow the downgrade of their parent, Bank VTB. The downgrade of the Long-term IDR of VEB-Leasing follows the downgrade of its majority owner, Vnesheconombank. These rating actions reflect the weakening of the ability of Bank VTB and Vnesheconombank to support their subsidiaries, which is in turn due to the reduced ability of the Russian authorities to provide support to those banks. The downgrade of Bank of Moscow follows the downgrade of the City of Moscow's Long-term ratings (see separate announcement on www.fitchratings.com), also following the downgrade of the Russian sovereign IDRs. The City of Moscow owns 44% of BOM directly and controls a further 15% through Capital Insurance Group. Fitch has also revised the Outlook on the National Long-term rating of ZAO Standard Bank to Stable from Negative; ZAO Standard Bank's other ratings are affirmed. The change in Outlook reflects the fact that, even if ZAO Standard Bank's Long-term IDR is downgraded by one-notch in the future, it will remain a relatively strong credit in Russia and continue to merit an 'AAA(rus)' National rating. Absolut Bank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Senior unsecured debt: Long-term rating downgraded to 'BBB+' from 'A-' (A minus) -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'D' Bank VTB (JSC) -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Long-term local currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB' from 'BBB+'; Short-term rating downgraded to 'F3' from 'F2' -- Senior unsecured debt: Long-term rating downgraded to 'BBB' from 'BBB+' -- Subordinated debt: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'C/D' -- Support Rating Floor: revised to 'BBB' from 'BBB+' Bank of Moscow -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Senior unsecured debt: Long-term rating downgraded to 'BBB-'(BBB minus) from 'BBB' -- Subordinated debt: Long-term rating downgraded to 'BB+' from 'BBB-' (BBB minus) -- Short-term foreign currency IDR: affirmed at 'F3' -- National Long-term rating: affirmed at 'AA+(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'D' CJSC Bank VTB24 -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB' from 'BBB+'; Short-term rating downgraded to 'F3' from 'F2' -- Senior unsecured debt: Long-term rating downgraded to 'BBB' from 'BBB+' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'D' CJSC Santander Consumer Bank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' JSC Bank VTB North-West -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Subordinated debt: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'D' JSC Rosagroleasing -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- National Long-term rating: affirmed at 'AA+(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Support Rating Floor: revised to 'BBB-' (BBB minus) from 'BBB' OJSC VEB-Leasing -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Support rating: affirmed at '2' Orgresbank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'D' Rosbank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Long-term local currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB+' from 'A-' (A minus); Short-term rating affirmed at 'F2' -- Senior unsecured debt: Long-term rating downgraded to 'BBB+' from 'A-' (A minus) -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'C/D' Russian Agricultural Bank -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB' from 'BBB+'; Short-term rating downgraded to 'F3' from 'F2' -- Senior unsecured debt: Long-term rating downgraded to 'BBB' from 'BBB+' -- Subordinated debt: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'D' -- Support Rating Floor: revised to 'BBB' from 'BBB+' Russian Commercial Bank (Cyprus) Ltd -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Support rating: affirmed at '2' Sberbank - Savings Bank of the Russian Federation -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB' from 'BBB+'; Short-term rating downgraded to 'F3' from 'F2' -- Senior unsecured debt: Long-term rating downgraded to 'BBB' from 'BBB+' -- Subordinated debt: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'C' -- Support Rating Floor: revised to 'BBB' from 'BBB+' Vnesheconombank -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Support rating: affirmed at '2' -- Support Rating Floor: revised to 'BBB' from 'BBB+' VTB Bank (Austria) AG -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'C/D' VTB Bank (France) SA. -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'C/D' VTB Bank Europe plc. -- Long-term foreign currency IDR: downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Senior unsecured debt: Long-term rating downgraded to 'BBB-' (BBB minus) from 'BBB' -- Short-term foreign currency IDR: affirmed at 'F3' -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'C/D' VTB Leasing -- Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Long-term local currency IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Senior unsecured debt: Long-term rating downgraded to 'BBB' from 'BBB+' -- Short-term foreign currency IDR: downgraded to 'F3' from 'F2' -- Short-term local currency IDR: downgraded to 'F3' from 'F2' -- Support rating: affirmed at '2' ZAO Citibank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'D' ZAO Raiffeisenbank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Senior unsecured debt program: Long-term rating downgraded to 'BBB+' from 'A-' (A minus); Short-term rating affirmed at 'F2' -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'C/D' ZAO Standard Bank -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook revised to Stable from Negative -- Support rating: affirmed at '2' -- Individual rating: affirmed at 'D/E' ZAO Unicredit Bank -- Long-term foreign currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Long-term local currency IDR: downgraded to 'BBB+' from 'A-' (A minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F2' -- Short-term local currency IDR: affirmed at 'F2' -- Support rating: downgraded to '2' from '1' -- Individual rating: affirmed at 'C/D' ========= S P A I N ========= TDA CAM: Moody's Assigns (P)C Rating on EUR76 Mln Series D Notes ----------------------------------------------------------------- Moody's Investors Service has assigned these provisional ratings to these classes of Notes to be issued by TDA CAM 12 Fondo de Titulizacion de Activos, a Spanish Asset Securitisation Fund : - (P)Aaa to the EUR380.0 million Series A1 notes - (P)Aaa to the EUR665.0 million Series A2 notes - (P)Aaa to the EUR418.0 million Series A3 notes - (P)Aaa to the EUR228.0 million Series A4 notes - (P)Ba1 to the EUR57 million Series B notes - (P)B1 to the EUR152 million Series C notes - (P)C to the EUR76 million Series D notes The transaction represents the securitization of Spanish residential mortgage loans originated by CAM (Caja de Ahorros del Mediterraneo, A2/Prime-1). The assets supporting the Notes are loans granted to individuals and secured by a first lien mortgage guarantee, with different types of mortgage properties located in Spain and different loan purposes. CAM will continue to service the loans. The ratings of the Notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, the legal and structural integrity of the issue and the credit quality of the parties involved in the transaction. According to Moody's, this deal benefits from several strengths, including these: (1) a relatively seasoned portfolio with average seasoning of approximately 2.3 years, (2) a reserve fund that is fully funded at closing to cover any potential shortfall in interest and principal; (3) a 12-month artificial write-off mechanism; and (4) a swap that hedges the interest rate risk resulting from the mismatch between asset and note interest rates. However, the transaction poses several challenging features, namely (1) geographical concentration on the Spanish coastal arrears, specifically on the region of Valencia (35.4% of the provisional pool), (2) Approx. 13% of loans are backed by more than one property for which the legal responsibility could not be provided, and which can be released. Moody's has taken this risk into account in the assumed valuation of the properties to reach 100% LTV, (3) 35% of the pool has an LTV exceeding 80% (includes the stress on LTV for multi-property loans), (4) approximately 22% of the pool consists of loans backed by vacation / second homes, and (5) compared to most previous transactions in the TDA CAM series, this transaction includes looser arrears triggers for the pro-rata amortization of the series as well as for the Reserve Fund amortization. These increased risks were reflected in the ratings assigned. The provisional ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal on Series A, B, and C notes at par on or before the legal final maturity date, as well as the ultimate payment of interest and of principal prior to the legal final maturity date of the Fund for the Series D notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed but may have a significant effect on the yield to investors. The Spanish Government announced on November 4, 2008 a package of aid to assist unemployed, self employed and pensioner borrowers through a form of mortgage subsidy aid. It is unclear how the transaction will be affected, although both liquidity and credit implications are possible on this portfolio. However, any implications on the ratings will ultimately depend on the actual financial aid conditions which will be approved. Moody's issues provisional ratings in advance of the final sale of securities and these ratings represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive rating to the Notes. A definitive rating may differ from a provisional rating. ===================== S W I T Z E R L A N D ===================== BADER INFORMATIK: Creditors Must File Proofs of Claim by Feb. 13 ---------------------------------------------------------------- Creditors owed money by LLC Bader Informatik are requested to file their proofs of claim by Feb. 13, 2009, to: Notary's Office Schwarz + Neuenschwander Martin Schwarz Neuengasse 25 3011 Bern Switzerland The company is currently undergoing liquidation in Kirchlindach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 23, 2008. BENQ SWITZERLAND: Deadline to File Proofs of Claim Set Feb. 14 -------------------------------------------------------------- Creditors owed money by JSC Benq Switzerland are requested to file their proofs of claim by Feb. 14, 2009, to: Martin Wiebecke Kohlrainstrasse 10 8700 Kusnacht/Zurich Switzerland The company is currently undergoing liquidation in Dietikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. HOLZBAU BUEL: Creditors Have Until February 14 to File Claims ------------------------------------------------------------- Creditors owed money by JSC Holzbau Buel are requested to file their proofs of claim by Feb. 14, 2009, to: Alice Staheli Bleichiweg 2a 9053 Teufen AR Austria The company is currently undergoing liquidation in Teufen AR. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 3, 2008. HUTH ENGINEERING: Proofs of Claim Filing Deadline Set Feb. 15 ------------------------------------------------------------- Creditors owed money by LLC Huth Engineering are requested to file their proofs of claim by Feb. 15, 2009, to: Brunigstrasse 32 6072 Sachseln The company is currently undergoing liquidation in Alpnach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 19, 2008. K + S CONSULTING: Creditors' Proofs of Claim Due by Feb. 13 ----------------------------------------------------------- Creditors owed money by LLC K + S Consulting are requested to file their proofs of claim by Feb. 13, 2009, to: Advocacy Probst Rechtsanwalte Mirjam Gahweiler Liquidator 8401 Winterthur Switzerland The company is currently undergoing liquidation in Suhr. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 26, 2008. KWS BAULEITUNGEN: Feb. 14 Set as Deadline to File Claims -------------------------------------------------------- Creditors owed money by LLC KWS Bauleitungen are requested to file their proofs of claim by Feb. 14, 2009, to: Alois Kempf-Wyrsch Postmatte 2 6462 Seedorf Switzerland The company is currently undergoing liquidation in Seedorf UR. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 9, 2008. MARINIC JSC: Creditors Must File Proofs of Claim by Feb. 15 ----------------------------------------------------------- Creditors owed money by JSC Marinic are requested to file their proofs of claim by Feb. 15, 2009, to: Urs J. Hausheer Liquidator Company Hausheer & Partner Untermuli 6 6302 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 9, 2008. SUTER-SOFTWARE LLC: Deadline to File Proofs of Claim Set Feb. 14 ---------------------------------------------------------------- Creditors owed money by LLC Suter-Software (SSO) are requested to file their proofs of claim by Feb. 14, 2009, to: Silvia Hausler Flurweg 12 3072 Ostermundigen Switzerland The company is currently undergoing liquidation in Muri bei Bern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. UA-LESINVEST LLC: Creditors Have Until Feb. 14 to File Claims ------------------------------------------------------------- Creditors owed money by LLC UA-LesInvest are requested to file their proofs of claim by Feb. 14, 2009, to: Ebni 1205 9428 Walzenhausen Switzerland The company is currently undergoing liquidation in Walzenhausen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 30, 2008. UBS AG: Held Prelim JV Talks With Wachovia, New York Post Says -------------------------------------------------------------- UBS AG has held preliminary talks with Wachovia Securities LLC about forging a joint venture of their North American wealth- management units, Mark DeCambre at New York Post reported. According to The Post, it's unclear at what stage the discussions are in, or exactly what form a joint venture might take, and one source warned a deal might never materialize. A UBS spokeswoman declined to comment while a Wells Fargo spokeswoman directed calls to a Wachovia Securities spokeswoman, who declined to comment, The Post said. Morgan Stanley Talks UBS had held talks with Morgan Stanley late last year over the sale of its U.S. brokerage unit, UBS Financial Services, a source familiar with the matter told Reuters on Monday, Feb. 2. The talks were preliminary and are not likely to be revived, Reuters's source said, adding UBS is not in talks with any other buyers for the unit but is focusing on strengthening it. As reported in the Troubled Company Reporter-Europe, UBS signed last month a transfer agreement with Barclays Bank PLC regarding the further sale of parts of its non-strategic commodities businesses. UBS confirmed Barclays Capital has agreed terms for transferring the risks associated with UBS's base metals, oil and US power and gas businesses. The sale followed the announcement on December 22, 2008, that J.P. Morgan has agreed to buy the entire Canadian-based commodities energy business and UBS's global agricultural businesses. On December 31, 2008, UBS said it sold its investment of approximately 3.4 billion Bank of China Limited H-shares through a placing to institutional investors. UBS acquired the approximately 3.4 billion Bank of China H-shares stake in 2005 in preparation for Bank of China's IPO to the international market. New Brokers Bloomberg News reported Tuesday UBS hired more than 200 brokers in the U.S. in the fourth quarter as it sought to counter client defections. According to the report, Karina Byrne, a spokeswoman for the Zurich-based bank, said in an interview UBS hired a team of five in Dallas from Goldman Sachs Group Inc. and a group of the same number from Morgan Stanley in Houston. UBS lured employees by offering signing bonuses of as much as 260 percent of the revenue the brokers brought in over the previous 12 months, Bloomberg News says citing two people with knowledge of the matter who declined to be identified. "It was one of the more aggressive deals that we've ever seen in this industry," Bloomberg News quoted Rick Peterson, the president of Rick Peterson & Associates, a recruitment firm in Houston, as saying. Mindy Diamond, president of Diamond Consultants LLC in Chester, New Jersey, warned that "super-sized" bonus deals may alienate existing brokers at UBS and increase attrition, Bloomberg News relates. Tax-Evasion Suit UBS faces a purported class-action lawsuit over allegations the Swiss bank helped thousands of Americans avoid paying taxes, the Class Action Reporter said Feb. 3 citing Chad Bray of Dow Jones. The lawsuit was filed in U.S. District Court for the Southern District of New York on Jan. 30, 2009 under the caption, "New Orleans Employees' Retirement System v. UBS AG et al., Case No. 1:2009-cv-00893." It alleges UBS bolstered the new account money it attracted by engaging in a fraudulent scheme to help ultra high-net worth U.S. clients avoid U.S. taxes by "secreting billions of their funds in 'undeclared' Swiss bank accounts." The lawsuit was filed on behalf of the New Orleans Employees' Retirement System, which manages about US$400 million in assets and is a UBS shareholder. It is seeking class-action status on behalf of investors who purchased UBS shares between May 4, 2004 and Jan. 26, 2009, according to Chad Bray of Dow Jones. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. * * * As reported in the Troubled Company Reporter-Europe on Dec. 1, 2008, Moody's Investors Service downgraded its rating on UBS AG- London Branch's GBP153,727,000 Credit Default Swap (with scheduled termination date on October 2014) to "B2" from "A3". According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 15, 2008, Washington Mutual Inc., which was seized by federal regulators on Sept. 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase, Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on Sept. 8, 2008 and one Icelandic bank, specifically Kaupthing Bank hf. On Nov. 26, 2008, the TCR reported Moody's Investors Service downgraded its rating on UBS AG-Jersey Branch's Series 6116 CHF 50,000,000 Fixed Rate Notes (due 2017 linked to the credit of a portfolio of Reference Entities managed by JPMorgan Asset Management UK Limited) to "Caa3" from "A2". According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on Sept. 8, 2008 and two Icelandic banks, specifically Kaupthing Bank hf and Glitnir Banki hf. ============= U K R A I N E ============= AVANGARD-TEXT LLC: Creditors Must File Claims by February 15 ------------------------------------------------------------ Creditors of LLC Avangard-Text (EDRPOU 31788858) have until Feb. 15, 2009, to submit proofs of claim to: The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Arbitration Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 18, 2008. The case is docketed as 7/167-B. The Debtor can be reached at: LLC Avangard-Text Karbishev St. 2 43026 Lutsk Ukraine AZOTBUILDINVEST LLC: Creditors Must File Claims by February 15 -------------------------------------------------------------- Creditors of LLC Firm Azotbuildinvest (EDRPOU 24360186) have until Feb. 15, 2009, to submit proofs of claim to: Mr. Sergey Tchernets Liquidator / Insolvency Manager Apt. 55 Gaydar St. 13 18000 Cherkassy Ukraine The Arbitration Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 26, 2008. The case is docketed as 18/5387. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: LLC Firm Azotbuildinvest Pervomayskaya St. 72 18014 Cherkassy Ukraine DRILLING SERVICE: Creditors Must File Claims by February 15 ----------------------------------------------------------- Creditors of LLC Drilling Service (EDRPOU 33151064) have until Feb. 15, 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. 4, 2008. The case is docketed as 28/318-b. The Debtor can be reached at: LLC Drilling Service Apt. 43 Grushevsky St. 28/2 01021 Kiev Ukraine HORTITSA LLC: Creditors Must File Claims by February 15 ------------------------------------------------------- Creditors of LLC Hortitsa (EDRPOU 21377950) have until Feb. 15, 2009, to submit proofs of claim to: Mr. Valentin Gavrilchenko Liquidator / Insolvency Manager Apt. 39 Rozhdestvenskaya St. 50 Cherkassy Ukraine The Arbitration Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 18, 2008. The case is docketed as 18/5249. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: LLC Hortitsa Sverdlov St. 12 Gerezhenovka Uman Cherkassy Ukraine INITIO LLC: Creditors Must File Claims by February 15 ----------------------------------------------------- Creditors of LLC Initio (EDRPOU 31984642) have until Feb. 15, 2009, to submit proofs of claim to: Mr. Alexander Snizhko Liquidator Apt. 18 B 3 40 Years of Oct. Avenue, 126 03127 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 28/168-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Initio Vozdukhoflotsky Avenue, 92-B 03036 Kiev Ukraine INTERPIPE LIMITED: Fitch Junks Issuer Default Rating from 'B-' -------------------------------------------------------------- Fitch Ratings has downgraded Ukraine-based pipes and railway wheels producer Interpipe Limited's Long-term Issuer Default Rating to 'CCC' from 'B-' (B minus). The agency has simultaneously downgraded Interpipe's Short-term IDR to 'C' from 'B' and downgraded its senior unsecured rating to 'CCC/'RR4' from 'B-' (B minus)/'RR4'. The Long-term IDR and senior unsecured rating remain on Rating Watch Negative pending the outcome of covenants testing in FYE2008 and FY2009. The downgrades reflect Fitch's view that Interpipe's capacity for meeting its financial obligations and passing covenants testing in FYE2008 and FY2009 is increasingly impaired, given the global economic recession and the associated volatility in demand for, and pricing of, pipes and wheel products. Fitch expects the company's FYE08 results will be weaker than previously forecasted by the agency. Based on an assumption that Q408 revenue dropped approximately 50% compared with Q308, Fitch expects FY08 EBITDA, adjusted by foreign currency translation and exchange difference, to be US$310-350 million, Gross debt of USD977m and Net Debt of US$874 million. Fitch believes there is a real possibility that Interpipe could breach its Net Debt/EBITDA covenant (lower than 2.5x) under its US$344 million Export Credit Agency finance facility. The agency estimates that FYE2008 Net Debt/EBITDA could be in the range of 2.49x-2.8x. The latest covenants testing, based on Interpipe's Q308 financials, resulted in Net debt/EBITDA at 2.46x-2.47x. Fitch forecasts that market conditions will remain weak throughout FY2009 resulting in continuing negative pressure on the issuer's credit profile. Fitch's downside scenario expects demand for oil and gas pipes, which represent more than 60% of company pipe sales, to be 10%-15% on average below that of FY08 due to lower oil prices and a contraction in oil extraction. Demand for industrial pipes, which represent more than 30% of company pipe sales, is expected to drop by 30%-50% because of an anticipated reduction in output in construction and machine-building industries. Pipe prices are expected to be 25-30% below that of Q308 and the expected reduction in infrastructure spending by railway companies will likely cause a 20%-30% demand drop for wheels. Some markets, such as Russia, will be characterized by excess production capacity which will cause serious imbalances between supply and demand. As a result, Fitch estimates that Interpipe's FY2009 revenue could potentially drop by 40%-50% resulting in EBITDAR of around US$230- 260 million. Interpipe's FY2009 gross leverage ratios (Gross Debt/EBITDA) and net leverage ratios (Net Debt/EBITDA) are expected to be 3.80x-4.1x and 3.4x-3.5x respectively which exceed the existing covenants level of Net Debt/EBITDA lower than 2.5x and Gross Debt/EBITDA lower than 3.0x-3.5x depending on the loans. Fitch also has concerns about Interpipe's FY2009 liquidity position and forecasts FYE2009 cash flow from operations of US$300-320 million compared with expected debt maturities of US$350 million. The resolution of the RWN is contingent upon the outcome of covenants testing in FYE2008 and FY2009, including confirmation that the issuer has taken measures to improve its liquidity position and capacity for meeting its financial obligations. Conversely, a failure to perform these steps could place additional negative pressure on Interpipe's ratings. Fitch downgraded Interpipe's Long-term IDR and senior unsecured rating on December 19, 2008, when it also placed both ratings on RWN. The RWN was assigned following the outcome of the tender offer for Interpipe's bonds and pending visibility that the issuer would be able to pass quarterly testing of all covenants in 2009. The December downgrade reflected Fitch's view that Interpipe's request to amend the covenants and expand the list of Permitted Indebtedness signaled ongoing and increased negative pressure on the issuer's credit profile. While the tender resulted in a substantial volume of Interpipe Eurobonds being tendered and the proposed amendments to the bond covenants level increasing from Gross Debt/EBITDA<3.5x up to Gross Debt/EBITDA<4.5x, and an expansion of the list of Permitted Indebtedness was approved, increasingly adverse market conditions have continued to negatively impact the issuer's performance. As of December 18, 2008, Interpipe had total debt of US$970 million of which US$465 million was secured by company assets. Interpipe's gearing increased from Net Debt/EBITDA of 0.2x as of FY07 to 2.46x-2.47x in Q3 FY08 due to a strategic capital expenditure program to construct an electric arc furnace and demands on working capital tied to business expansion. The Recovery Rating applied to Interpipe's senior unsecured notes of 'RR4 takes into account the split between secured and unsecured debt and indicates Fitch's expectation of more than a 30% recovery of the unsecured debt in the event of default. LVOV PLANT: Creditors Must File Claims by February 15 ----------------------------------------------------- Creditors of OJSC Lvov Plant Of Electrical-Type Instruments (EDRPOU 25230853) have until Feb. 15, 2009, to submit proofs of claim to: Mrs. Galina Kovalko Liquidator Office 24 Gazovaya St. 36/1 79058 Lvov Ukraine The Arbitration Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 11, 2008. The case is docketed as 27/45. The Economic Court of Lvov Lichakivska Str. 128 79010 Lvov Ukraine The Debtor can be reached at: OJSC Lvov Plant of Electrical-Type Instruments Nischinsky St. 35 79014 Lvov Ukraine SLAVUTICH-CAPITAL LLC: Creditors Must File Claims by February 15 --------------------------------------------------------------- Creditors of LLC Investment-Consulting Company Slavutich-Capital (EDRPOU 32614172) have until Feb. 15, 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. 29, 2008. The case is docketed as B 29/325-08. The Debtor can be reached at: LLC Investment-Consulting Company Slavutich-Capital Gorky St. 2 Dnipropetrovsk Ukraine UKREXIMBANK: Fitch Affirms Individual Rating at 'D' --------------------------------------------------- Fitch Ratings has affirmed Ukraine-based JSC The State Export- Import Bank of Ukraine's Long-term Issuer Default Rating at 'B+' with a Negative Outlook and its Individual rating of 'D'. Ukreximbank's Long-term and Short-term IDRs, Support Rating and National Long-term rating are underpinned by potential support from the Ukrainian authorities, in case of need, based on Ukreximbank's state ownership and its policy role. The ratings also take into consideration the ability of the Ukrainian authorities to provide support, as indicated by the sovereign's Long-term foreign currency IDR of 'B+'. The Negative Outlook on the bank's Long-term IDR reflects the Outlook on the sovereign's Long-term IDR. A downgrade of Ukraine' sovereign ratings would result in a downgrade of Ukreximbank's ratings. Ukrexim's asset quality is likely to deteriorate significantly in 2009 in light of the sharp depreciation of the UAH in Q408, the weaker outlook for the Ukrainian economy, the bank's recent rapid loan growth, the very high proportion of foreign currency lending and significant exposure to the construction/real estate sector. However, in Fitch's view, these risks are currently reflected in the bank's 'D' Individual rating. Ukrexim's stand-alone financial profile is supported by its currently reasonable capitalization, moderate loan impairment to date, satisfactory liquidity position, relatively stable customer funding and the bank's solid corporate franchise, which is focused on companies engaged in foreign trade and often with access to foreign currency revenues. Loan growth, while very rapid to end-2007, slowed significantly to nearly 20% in 9M08 (below the sector average pace of growth) and was very limited in Q408 (net of FX effects). Borrower concentrations remain high, albeit comparable with many other CIS banks: the top 20 borrowers accounted for 29% of loans and 219% of equity at end-Q308, albeit the latter ratio should have reduced significantly as a result of subsequent capital injections. Lending to a large state-owned company from the energy sector is now about 13% of equity, Fitch estimates, following the end- January equity injection. Loans issued for the purposes of real estate development and construction were sizable, at around 80% of capital at end-January 2009, which increases the bank's risk profile. Impaired loans (defined as loans overdue by more than 90 days) were low at 1.1% at end-Q308 with reserve coverage of 2.5x, but are likely to rise significantly. A very high 78% of Ukrexim's lending was in foreign currencies at end-2008, although Fitch notes that most of these loans were made to exporters with foreign currency revenues. The regulatory capital adequacy ratio fell to a low 10.6% (regulatory minimum: 10%) at end-2008, due to the effects of the UAH depreciation. However, this has improved considerably to 19.7% following a UAH3.7 billion equity injection (equal to almost 80% of end-2008 equity) on January 30, 2009. Fitch notes that this new equity, and also a UAH1 billion injection made in Q408, was contributed in the form of long-dated (7-year), low-rate (9.5%) government securities; however, concerns about the quality of capital are at least partially alleviated by Fitch's understanding that Ukrexim has a put option to sell these bonds to the National Bank of Ukraine at their nominal value. Liquidity is currently satisfactory and the bank has been less affected than peers by the local market turbulence of Q408. Fitch estimates that the overall loss of client funding was only 4% (net of FX effects) during that period. At end-2008, highly liquid assets (cash, net short-term (less than one month) interbank placements and unpledged government securities) were equal to a significant 41% of total client funds, and this ratio will have increased substantially following the recent equity injection. Foreign funding maturing in 2009 accounted for a significant 14% of liabilities at end-2008; however, this appears manageable in light of the current liquidity position and the relative stability of customer funding to date. Downward pressure on the Individual Rating could result from a substantial weakening of asset quality, a marked increase in directed lending or should a combination of deposit outflow and foreign debt repayments cause a sharp tightening of the liquidity position. Ukreximbank was the fifth-largest bank by asset size in Ukraine at end-Q308. Its principal franchise lies in serving corporate customers (mainly export/import oriented) and their employees. The bank has a notable regional presence through some 140 outlets, including 30 branches. Ukreximbank's ratings have been affirmed: -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating affirmed at 'RR4' -- Subordinated debt: affirmed at 'B-' (B minus); Recovery Rating affirmed at 'RR6' -- Short-term foreign currency IDR: affirmed at 'B' -- Support Rating: affirmed at '4' -- Individual Rating: affirmed at 'D' -- Support Rating Floor: affirmed at 'B+' -- National Long-term rating: affirmed at 'AA(ukr)'; Outlook Stable UKRMETENERGOCOM CJSC: Creditors Must File Claims by February 15 --------------------------------------------------------------- Creditors of CJSC Ukrmetenergocom (EDRPOU 30109617) have until Feb. 15, 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. 4, 2008. The case is docketed as 28/319-b. The Debtor can be reached at: CJSC Ukrmetenergocom Apt. 43 Grushevsky St. 28/2 01021 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ANGLO OVERSEAS: Goes Into Administration; 70 Jobs Affected ---------------------------------------------------------- Glyn Mummery and Jeremy French, client partners at Vantis Business Recovery Services (BRS), a division of Vantis, the UK accounting, tax and business advisory group, were appointed joint administrators on the administration of international freight forwarder Anglo Overseas Ltd on January 16, 2009. The company's European parent, Ziegler Group, is not affected. Anglo Overseas Ltd has 15 sites across the UK, including two bonded warehouses, with a head office in West Thurrock. The business was forced into insolvency following a prolonged period of exceptionally difficult trading conditions. The company recently entered into a comprise agreement with HM Revenue & Customs regarding a VAT fraud which, as it was acknowledged, was not the fault of the company or its staff. This, compounded with cash flow restrictions, has resulted in the withdrawal of group support culminating in the appointment of administrators. As a part of immediate cost-cutting measures, unfortunately 70 of the company's 210 staff have had to be made redundant. Commenting on the administration, Glyn Mummery said: "Anglo Overseas Ltd has a great deal of heritage and is highly respected in the marketplace. It operates what is probably the second largest bonded warehouse in London, dealing with clients such as the champagne house that supplies the Royal Family. We are working closely with the management team to assess the opportunities to rescue all or parts of the business." ASPEN & COURT: Appoints Joint Administrators from KPMG ------------------------------------------------------ Richard Dixon Fleming and Mark Granville Firmin of KPMG LLP were appointed joint administrators of Aspen & Court Ltd. on Jan. 23, 2009. The company can be reached through KPMG LLP at: 1 The Embankment Neville Street Leeds LS1 4DW England BERNARD L. MADOFF: Seeks to Hire Counsel for U.K. Proceedings ------------------------------------------------------------- Irving H. Picard, the trustee for the liquidation of Bernard L. Madoff Investment Securities Inc., seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to hire U.K.-based law firm Lovells LLP to give advice and recover assets in Europe. Mr. Picard says it will be necessary to engage counsel to represent him in the foreign proceedings of MSIL. He says he seeks to retain Lovells as special counsel because of its knowledge, expertise and experience in liquidation proceedings in the United Kingdom and other European foreign jurisdictions, including France, Germany, Italy, and Spain. "Lovells' employment and retention is necessary and in the best interests of the Debtor's estate and its customers and creditors," he said. Foreign Proceedings The directors of Madoff's London entity, Madoff Securities International Ltd., filed an application with the High Court of Justice, Chancery Division, Companies Court, for the appointment of joint provisional liquidators. After a hearing on December 19, 2008 at which counsel for the Receiver, counsel for the MSIL Directors, counsel for the Financial Services Authority, and counsel for the Joint Provisional Liquidators were heard, the High Court ordered, among other things, that: (1) MSIL be placed into a provisional liquidation, (2) Mark Richard Byers, Andrew Laurence Hosking, and Stephen John Akers of Grant Thornton be appointed joint provisional liquidators, (3) the affairs, business, and property of MSIL will be managed by the joint provisional liquidators, (4) the joint provisional liquidators will cooperate with the Receiver, the Trustee, and the Financial Services Authority, and (5) to use their best efforts to provide to the United States Department of Justice and SEC the same information provided to the Receiver, Trustee, and FSA. According to Mr. Picard, issues have arisen in other foreign jurisdictions in Europe such that there may be a need for representation by counsel in other foreign proceedings in Europe as he pursues the recovery of customer property. Lovells' Fees Lovells will be compensated at its normal hourly rates, less a 10% discount. Lovells normal hourly rates are: Hourly Rates ---------------------------------- Level of Experience London (GBP) Cont. European (EUR) ------------------ ------------ ------------------- Partner 610 520 Consultants and Senior Lawyers 560 435 Assistant 6-8 years 525 415 Assistant 5-6 years 490 370 Assistant 4-5 years 450 335 Assistant 3-4 years 415 335 Assistant 2-3 years 380 315 Assistant 1-2 years 340 295 Assistant 0-1 years 300 275 Trainee 230 235 The Securities Investor Protection Corporation, the entity that applied for the liquidation of BLMIS under the Securities Investor Protection Act, has no objections to the retention of the firm. Lovells' Disinterestedness Mr. Picard says that he believes members, counsel and associates of Lovells are disinterested pursuant to section 78eee(b)(3) of SIPA and do not hold or represent any interest adverse to the Debtor's estate in respect of the matter for which Lovells is to be retained. Christopher Kennet Grierson, a member of the firm, disclosed that Lovells represents many customers or creditors of Madoff. However, he said the firm will not represent those persons or entities adverse to the interest of the Debtor. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC was a market maker in US stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were at least US$50 billion Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. BLP UK: Goes Into Administration; About 100 Jobs at Risk -------------------------------------------------------- Cabinet Maker reports BLP UK Limited has gone into administration, putting about 100 jobs at risk. Lyn Vardy and Ian Green of PricewaterhouseCoopers LLP were appointed joint administrators on January 28, the report discloses. The report relates according to a statement from PwC, the business has suffered significant losses as a result of the severe housing and retail downturn in the UK and the slowdown in consumer spending on home improvements. The administrators however will continue to trade the business while a buyer is sought, the report notes. They are also reviewing staffing levels but anticipate retaining the majority of employees in the short term, the report adds. Based in Kirk Sandall, Doncaster, BLP UK Limited is a manufacturer of MDF-wrapped profiles and membrane pressed cabinet doors. It also offers a comprehensive range of products for the furniture manufacturing and related industries. BLUEBRAY PROPERTIES: Names Administrators from Ernst & Young ------------------------------------------------------------ Robert Hunter Kelly and Charles Graham John King of Ernst & Young LLP, were appointed joint administrators of Bluebray Properties Ltd. on Jan. 22, 2009. The company can be reached at: Bluebray Properties Ltd. 194-196 Crookes Sheffield South Yorkshire S10 1TG England CAMDEN GROUP: Goes Into Administration; 800 Jobs at Risk -------------------------------------------------------- Talking Motors reports that Camden Group Services has gone into administration, putting about 800 jobs at risk. The report relates Alastair Beveridge, Stuart Mackellar and Fraser Gray, partners at Zolfo Cooper (formerly Kroll's Corporate Advisory & Restructuring Group), were appointed as joint administrators of Camden Group Services, Camden Fleet Solutions, Camden Bidco, Camden Retail and CCFS (2005) (Camden Group). Camden Retail, the group's car retailing unit, had a turnover of GBP910 million in the year to December 2007 with pre-tax profits of GBP3.08 million, the report states. "Despite having well-established businesses in both the automotive fleet services and retail franchise sectors, Camden Group has not been able to escape the extremely tough trading conditions that the sector as a whole is battling through," Mr. Beveridge was quoted by the report as saying. Zolfo Cooper, as cited by the report, said it will continue to trade Camden Group as a going concern while it explores options for its future. According to Evening Telegraph, about 40 redundancies have already been made. Headquartered in Leighton Buzzard, Bedfordshire, Camden Group Services has a Ford dealership in Corby, Nissan in Northampton and Dunstable, Renault in Northampton, Milton Keynes and Dunstable and Vauxhall in Aylesbury. It also has a Camden Car Store supermarket operation in Milton Keynes and runs Camden Fleet Solutions from Islip and Corby in Northampton, Talking Motors discloses. GLOBAL GENERAL: Court Grants Recognition of Foreign Proceedings --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has granted the request of Thomas Klaus Freudenstein, as foreign representative of Global General and Reinsurance Company Limited and Globale Ruckversicherungs-Ag, for recognition of the foreign main proceedings respecting the Schemes of the Global General and Globale under the Companies Act in the High Court of Justice of England and Wales. The Schemes, including any modifications or amendments thereto, are given full force and effect in the United States, and are binding on and enforceable against any person or entity that is a Scheme Creditor including without limitation, against such person or entity in its capacity as a debtor of a Scheme Company in the United States. Thus, all Scheme Creditors are permanently enjoined from taking any action in contravention of, or inconsistent with, the Schemes, and except as otherwise provided in the Order or in the Schemes, all Scheme Creditors are permanently enjoined from seizing, repossessing, transferring, relinquishing or disposing of any property of any Scheme Company, or the proceeds thereof, in connection with any claims in the United States. All persons and entities in possession, custody or control of property of a Scheme Company or the proceeds thereof, are also required to turn over and account for such property or proceeds thereof to the Petitioner, such Scheme Company, or the Scheme Manager, as defined in the Order. Copies of the order, the Schemes and the Petitions may be obtained upon written request attorneys to the Petitioner: Chadbourne & Parke LLP Attn: Howard Seife, Esq. and Francisco Vazquez, Esq. 30 Rockefeller Plaza New York, NY 10112 Tel: (212) 408-5100 About GLOBAL General Headquartered in London, GLOBAL General and Reinsurance Company Limited is an insurance and reinsurance company formed in April 16, 1940. Between 1940 and 2002, GLOBAL General wrote a wide array of reinsurance business in England. The reinsurance portfolio was underwritten in London, predominantly from the early 1950's to the early 1980's. The portfolio was mostly accepted through placements made by London market brokers. The portfolio consists of facultative and treaty reinsurance, both proportional and non-proportional, covering various classes including, but not limited to, marine, non-marine and aviation. Thomas Klaus Freudenstein, as foreign representative of the two Scheme Companies, filed voluntary petitions for GLOBAL General and its wholly owned subsidiary GLOBALE Ruckversicherrungs-AG on Dec. 10, 2008, under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D. N.Y. Case Nos. 08-114939 and 08-014940). The company listed assets of more than US$100 million and debts of more than US100 million in its petition. Howard Seife, Esq., at Chadbourne & Parke LLP represents the Petitioners as counsel. GMW1 LTD: Taps Joint Administrators from KPMG --------------------------------------------- Richard Dixon Fleming and Mark Granville Firmin of KPMG LLP were appointed joint administrators of GMW1 Ltd. on Jan. 23, 2009. The company can be reached through KPMG LLP at: 1 The Embankment Neville Street Leeds LS1 4DW England LLOYDS BANKING: Scottish Widows Halts Investment Withdrawals ------------------------------------------------------------ Bloomberg News reports Lloyds Banking Group Plc's Scottish Widows unit stopped investors withdrawing investments from one of its U.K. property funds as it seeks to restore cash levels depleted by customer redemptions. According to the report, a spokesperson said the fund, with assets of GBP596 million (US$849 million), has fallen 40 percent in the last year. "The cash is at quite a low level" as the fund has been unable to sell commercial properties at higher prices, Susan McDonald, a spokeswoman for Scottish Widows, told Bloomberg News in a telephone interview. The freeze on the fund, which will last 180 days, won't affect investors whose pension plans are maturing, where claims arise from the death of a policyholder, or for people who get a regular income from the funds, Scottish Widows said in an e-mailed statement obtained by Bloomberg News. Lloyds Banking Group PLC (NYSE:LYG) -- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is a United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the company's specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the company acquired HBOS plc. MINI MODE: Appoints Joint Administrators from PwC ------------------------------------------------ Robert Jonathan Hunt, Michael John Andrew Jervis and Stuart David Maddison of PricewaterhouseCoopers LLP, were appointed joint administrators of Mini Mode Childrenswear Ltd. on Jan. 21, 2009. The company can be reached at: Mini Mode Childrenswear Ltd. Attleborough House Townsend Drive Nuneaton Warwickshire CV11 6RU England SAXON PHOTOLITHO: Taps Joint Administrators from KPMG ----------------------------------------------------- Ian James Corfield and Allan Watson Graham of KPMG LLP were appointed joint administrators of Saxon Photolitho Ltd. on Jan. 26, 2009. The company can be reached at: Saxon Photolitho Ltd. Saxon House Hellesdon Park Road Drayton High Road Norwich NR6 5DR England TRU-EST: Goes Into Administration; Leonard Curtis Appointed ----------------------------------------------------------- Tru-Est, a specialist financial B2B magazine publisher, has gone into administration, Patrick Smith at paidcontent.co.uk reports citing a document filed at Companies House last month. The company, which owns the Private Asset Managers database and Thewealthnet.com, was put in the hands of administrators Leonard Curtis, the recovery, insolvency and restructuring firm, the report discloses. The report says it is still uncertain why Tru-Est found itself in difficulty. The report however notes a business model based on private wealth management information is seriously threatened by recession. According to the report, the company's most recent accounts, for the year to August 22, show that Tru-Est had issued 10,000 shares worth GBP100 each�giving it an equity value of GBP1 million. * UK: PwC Says Failed Travel Companies Steadily Increasing --------------------------------------------------------- The steady trickle of failed travel companies has started the climb towards new heights as the threat of airline failure looms in 2009, warns PricewaterhouseCoopers LLP. In just under two years the number of tour operators or travel agents becoming insolvent has increased by 50%, as fifteen went bust in England and Wales in the final quarter of 2008. In fact, there were a third more travel insolvencies last year than in 2007. The firm's quarterly insolvency statistics indicate a gradual increase in insolvencies since early 2007 with two prominent quarters. Both Q4 of 2007 and Q3 2008 saw the industry shaken by giant players falling over. The most recent being XL - accounting for 11 of 24 companies becoming insolvent. The Travelscope collapse occurred the previous winter, taking several of its subsidiaries with it. Again this explains the spike in insolvencies during Q3 2007. Ian Oakley-Smith, partner, PricewaterhouseCoopers LLP, said: "Discounting the Travelscope and XL administrations, we can see the level of failed travel companies increasing steadily over the last two years. This may, however, be the tip of the iceberg." "With around 30 airline failures forecast* over the next year, those travel organizers operating under an ATOL will be expected to find alternative air travel for their customers. This kind of unexpected, financial outgoing could finish off a number of smaller companies." However, aside from taking out its own companies, the collapse of XL will actually have helped save some travel organizers from ruin by taking capacity out of a saturated market. "XL operated three per cent of the market and its demise will have freed up share for other travel companies. As more become insolvent in 2009, this will benefit some of the larger players and the gulf between winner and losers will widen," Mr. Oakley- Smith added. Due to the typical lag the travel industry experiences between the start of a downturn and the impact on the number of failures, this is likely to be just the start of a steeper incline in travel and tourism (T&T) insolvencies. As more people experience a reduction in their income over the next year holidays will fall down the household priority list. "Bookings or rather the lack of them over the next few months for summer holidays 2009 will determine the rate of failure for these businesses." "Travel agents and tour operators both operate in a regulated environment, but will continue to feel the pressure during 2009 and those with weaker balance sheets may find it difficult to avoid being taken over or failing." Mr. Oakley-Smith concluded. About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * UK: PwC Says Hotel Insolvencies Up 100% in Fourth Quarter 2008 ---------------------------------------------------------------- After a 100% increase in UK hotel insolvencies from Autumn to Winter in 2008, the industry should not expect to see a thaw in the Spring, warns PricewaterhouseCoopers LLP. The fourth quarter of 2008 saw 36 hotel companies enter an insolvency process, double the number of the previous quarter. This means the downturn in demand for hotel services, caused by the global credit crunch, is now starting to have a real impact on these businesses. Following on from the strong trading experienced in previous years, the firm's quarterly insolvency statistics show the number of hotel company insolvencies for the whole of 2008 have increased by 98 per cent over 2007. Stephen Broome, Hospitality & Leisure (H&L) director, PricewaterhouseCoopers LLP, said: "Experience from previous economic downturns tells us that the hotel industry is hit later in the cycle than many other sectors, such as retail. This is due in part to extended lead in times for hotel bookings and means that the impact tends to fall six to 12 months later than some other sectors. However, as was experienced in the last recession, the negative impact on hotel performance is likely to accelerate sharply at the start of the technical recession, suggesting these early casualties are just the beginning." "However, there is some hope," Mr. Broome added. "The industry is in a stronger position this time around, and the increase in insolvencies we have seen so far is not totally related to the downturn. Many of the failures are the result of a flawed business model, such as unsustainable levels of rent or debt, where the recent downturn in demand has simply dealt the final blow." Managing Hotels in a Downturn Many hotel businesses will be tempted to freeze infrastructure investments, mothball new growth hotel projects and defer integrating the latest acquisition. Advertising and recruiting investments are easily cut, as are loyalty programs for customers and staff. However, some hotel businesses will take a different approach and selectively invest where others are cutting back. These are the businesses that will benefit. "Hotel businesses that understand the need to develop and implement new strategies can navigate the downturn in a way that makes the most of the opportunities arising. Those who don't know enough about themselves or the external market will be inclined to take the path of least resistance, leading to defensive and piecemeal actions which can result in reduced service levels and disgruntled clients. Most damaging of all, these businesses risk losing out to their competitors," Mr. Broome concluded. About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * UK: PwC Says Restaurant Insolvencies Up 32% in 2008 ----------------------------------------------------- UK Restaurants have been hit harder by the recession than any other Hospitality & Leisure (H&L) sector, accounting for 45% of all H&L insolvencies in the quarter before Christmas, PricewaterhouseCoopers LLP (PwC) reveals. Not only are these businesses battling with the reduction of corporate entertaining, and consumer disposable income squeeze, but also innovative food retailer offerings and a culture of cooking programs that encourage aspirational cheffing. In a recent PwC poll, asking consumers what would be first choice if they were forced to cut spending, take-aways, fast food (14%) and eating out (11%) were top of the chopping list. While only half of these respondees would reduce their grocery purchases. The impact of the downturn is clear in the firm's quarterly insolvency statistics, as 32% more restaurants went bust in 2008 than the previous year. In Q4 of last year 141 restaurants became insolvent as more UK consumers chose to eat in. Stephen Broome, Hospitality & Leisure (H&L) director, PricewaterhouseCoopers LLP, said: "In addition to a number of expected high-end restaurant failures, those mid-range restaurants that do not focus on either a value for money or a unique dining experience have been disappearing from our streets since last summer. This trend is likely to accelerate." Mr. Broome continued to say, the market has been flooded with tempting dine at home offers such as the M&S dine in for GBP10 offer, aimed very much at the lucrative weekend dining out market, and our televisions (which we are watching more of) are filled with cookery programs and food related campaigns, reinforcing the desire and necessity to stay at home and create a lower cost but inviting alternative dining. Many restaurant businesses are fighting back by offering tempting off peak price led deals and money off vouchers, and this will help prop up flagging revenues albeit probably at lower profit margins. The Local or the Living Room? To the UK pub industry, 2007 is remembered for two key events, the introduction of the smoking ban and in a wet summer, no national presence in the European football championships. Many predicted that 2007 would represent the low point in pub fortunes. However, due to the downturn in consumer confidence and trend towards drinking at home, 2008 has proven to be even worse than 2007 with 64% more pub businesses becoming insolvent than in the previous year. The failure rate appears to be increasing and in the final quarter of 2008 insolvencies in the sector increased from 64 in Q3 to 74 in the Christmas quarter � an increase of 16%. Mr. Broome said: "With beer sales falling to a record low and almost 40 pubs closing a week, up from the previous average of 36, we are seeing this trend continue to gather speed. The industry has been ravaged by a combination of negative factors over recent years, and the recession is likely to put further pressure on an already difficult trading environment. We expect our recent prediction of 4000 pub closures by 2010 to sadly remain on course." However, there is a shred of good news in the recent PwC consumer poll that indicated that people were less willing to reduce their visits to the pub or indeed how much they spend when they are there, and would do so even at the expense of foregoing spending on take-away, fast food and eating out. "Of course this sentiment may change as more consumers face job threats and experience a reduced income. But for those pubs that get it right, and there are many that do, there is still a loyal customer following to be enjoyed," Mr. Broome added. Managing in a Downturn Businesses that take the time to fully understand and plan for the impact of the current recession can navigate a path that makes the most of the opportunities arising. For most this will involve developing and implementing a "back to basics" survival strategy that probably includes selective, non-customer facing cost savings as well as an element of innovation in maintaining revenue and profit levels. "Those who don't know enough about themselves or markets they serve will be inclined to take the path of least resistance, leading to defensive and piecemeal actions which will result in reduced service levels and disgruntled clients. Most damaging of all, these businesses risk losing out to their competitors," Mr. Broome concluded. About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * Fitch Sees High Risk of Deferred Interest Payments on Banks ------------------------------------------------------------- Fitch Ratings says that the risk of deferred interest payments on bank hybrid capital instruments (which share characteristics of debt and equity) has increased materially for the banks most under pressure in the current financial crisis, due to significantly lower operating earnings, or losses, combined with high levels of government support, according to a comment published today. "Central to this matter is the question of the extent to which the government support that has flowed - and will, in Fitch's opinion, continue to flow - in the world's banking systems can be relied upon to extend to existing holders of deeply subordinated bank capital instruments," says Gerry Rawcliffe, Group Credit Officer in Fitch's Financial Institutions group. Fitch does not believe investors should view such support as continuing endlessly. Absent evidence of a normalizing of operating conditions, regulators may well exhibit some bias toward protecting taxpayer funds. This could include looking to put hybrids into deferral. "In certain cases the investment risks faced by investors in these instruments is sufficiently material for Fitch to view them as not being of investment grade," says Rawcliffe. Fitch's hybrid capital rating criteria (July 2005) do not assume that government support would be forthcoming for these instruments, and that the key driver of hybrid capital ratings is the stand-alone strength of an institution, as expressed in its Individual Rating. Fitch believes that the current exceptional circumstances merit a conservative application of the existing criteria, especially given the uncertainty and opaqueness surrounding the regulatory considerations in respect of hybrid capital. In response to the heightened risk of hybrid coupon deferral and, in extreme cases, outright principal loss, Fitch has already taken rating actions that have widened the number of notches between the Issuer Default Rating and the rating assigned to the hybrid and preferred instruments for select issuers. Given that the deferral decision process potentially involves both regulatory and political considerations, and the possibility that the situation regarding bank hybrid capital could change very quickly, Fitch expects to maintain downgraded hybrid capital instruments on Rating Watch Negative. For instruments with low investment grade ratings, the Rating Watch Negative indicates that a move into sub- investment grade is a real possibility. Fitch regards a deferral on a hybrid instrument as non-performance from a ratings perspective. Deferral will lead to the assignment of instrument ratings consistent with non-performing obligations, typically in the low 'B' to 'CCC'-'C' range. Loss expectations will be derived from a combination of the expected duration of the coupon deferral and the cumulative versus non-cumulative nature of the instrument. * BOOK REVIEW: Crafting Solutions for Troubled Businesses --------------------------------------------------------- Full Title: Crafting Solutions for Troubled Businesses: A Disciplined Approach to Diagnosing and Confronting Management Challenges Author: Stephen J. Hopkins and S. Douglas Hopkins Publisher: Beard Books Hardcover: 316 pages List Price: US$74.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankrupt So the first thing to do when dealing with a troubled business is to find the guilty and lop someone's head off! Don't be so quick to react, advise co-authors Stephen J. Hopkins and S. Douglas Hopkins in their thoughtful, well-researched book, Crafting Solutions for Troubled Businesses. The father-son team of Steve and Doug Hopkins are principals of Kestrel Consulting LLC, a firm they founded in March 2004. Each has more than 25 years of experience working with troubled businesses and providing turnaround advisory and interim management services. Steve got his first taste of a troubled business when, as chief financial officer of an 80-year-old chemical company, Bill Nightingale of Nightingale & Associates assisted him in taking the company through a Chapter 11 filing. The company subsequently emerged from bankruptcy with payment in full to all creditors. Steve then joined Nightingale, staying for 23 years and serving initially as a principal and eventually as president from 1994 to 2000. Doug began working at Nightingale in 1978 as a part- time resource for special projects. After working in this capacity for 10 years, Steve joined Nightingale full time in the 1980s and became a principal in 1994. Both Steve and Doug have served in various C-level roles in troubled companies, including CEO, CFO, COO, and CRO. To write this book, the Hopkinses drew upon their vast experience in dealing with troubled companies. They took 100 of the largest projects they have been involved in and applied a "disciplined analysis" to diagnose problem situations and produce successful outcomes. The projects -- helpfully set apart by shaded boxes -- demonstrate the authors' theories and methods in dealing with troubled businesses. The authors also analyze some well-known cases like Enron, WorldCom, and Sunbeam to help the reader connect the dots in a very real sense and use the book for actionable advice. The book is divided into five parts: 1) Conceptual Approach and Key Issues, 2) Managing the Crisis, 3) The Diagnosis Process, 4) Alternatives and Action Plans, and 5) Lessons Learned in 100 Completed Assignments. Each part has multiple chapters expanding on these themes, and each chapter concludes with a recap of what was discussed. For speed readers and the time crunched, these recaps are an excellent way of extracting from the book the essence of what the authors are advocating. So what about lopping off that head? The authors contend that management's role is much less pivotal than is commonly believed. The real issue when working with a troubled business is determining the viability of the business. To do that, the underlying causes must be identified at different stages of the corporate lifecycle. The authors categorize troubled businesses as Undisciplined Racehorses, Overburdened Workhorses, and Aging Mules. Only through a step-by-step diagnosis can the core problems be dealt with. Pursuing a turnaround may not always be a viable and, in fact, in only one-third of the 100 cases the authors worked on did the company achieve a true operational turnaround. Crafting Solutions to Troubled Businesses should be on the must- read list of anyone involved in dealing with, consulting for, or operating a troubled business. ********* 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 * * *