/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090209.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, February 9, 2009, Vol. 10, No. 27 Headlines A U S T R I A AUSTRIAN AIRLINES: At Risk of Insolvency, OeIAG Says GRUENBERGEREFERDINGER LLC: Claims Registration Ends Feb. 24 HEIDEN LLC: Claims Registration Period Ends February 17 HENZO-FOTOALBEN LLC: Claims Registration Period Ends Feb. 17 KALUTEC ELEKTRO: Claims Registration Period Ends Feb. 23 LA BAU: Claims Registration Period Ends February 10 F R A N C E ALCATEL LUCENT: S&P Comments on CreditWatch Placement G E R M A N Y AQUATARIS GMBH: Claims Registration Period Ends March 10 DFG KOMPLETTBAU: Claims Registration Period Ends March 23 E-TEC FACILITY: Claims Registration Period Ends March 16 FHM BAUMANAGEMENT: Claims Registration Period Ends March 11 JAEGER CONTROLS: Claims Registration Period Ends March 27 LATINO ENTERPRISES: Claims Registration Period Ends March 13 G R E E C E SEANERGY MARITIME: Gets Waiver on Loan Covenant; Suspends Dividend I R E L A N D CHARTBUSTERS: 17 Stores to Close; 60 Jobs Affected EIRLES TWO: S&P Withdraws 'CCC' Ratings on EUR50 Mil. Notes K A Z A K H S T A N ALLIANCE BANK OA: Seeks Loan Waiver After Gov't Take Over ALLIANCE BANK OA: Fitch Affirms 'BB-' IDR with Neg. Outlook BTA BANK: Fitch Affirms 'BB' IDR with Negative Outlook BTA BANK: S&P Places Low-B Ratings on CreditWatch Negative EURO BUILD: Proof of Claim Deadline Slated for March 13 FIRMDIGOR-INTER LLP: Creditors Must File Claims by March 13 FIRST TEAM: Claims Filing Period Ends March 13 JENIS LLP: Creditors' Proofs of Claim Due on March 13 LANGUAGES ATYRAU: Claims Registration Period Ends March 13 NURBEK KURYLYS: Proof of Claim Deadline Slated for March 13 REAL PROMOTION: Creditors Must File Claims by March 13 ROSS INVEST: Claims Filing Period Ends March 13 SVETOVYE TECHNOLOGIYI: Creditors' Proofs of Claim Due on March 13 VIKTORIYA NS: Claims Registration Period Ends March 13 K Y R G Y Z S T A N DAEHAN AND COMPANY: Creditors Must File Claims by February 27 N E T H E R L A N D S SCEPTRE CAPITAL: S&P Withdraws 'CCC' Ratings on Secured Notes R U S S I A EVROSTROY-PROEKT LLC: Creditors Must File Claims by March 2 KURGAN-PROM-BANK OJSC: Creditors Must File Claims by April 2 MIRAX GROUP: Moody's Cuts Corporate Family Rating to 'Caa1' POLIGRAPH-MASH OJSC: Creditors Must File Claims by March 2 SERPUKHOVSKIY AUTOMOBILE: Creditors Must File Claims by March 2 STERLIMAK-STROY TRUST: Creditors Must File Claims by March 2 TANGRA-OIL LLC: Court Names Temporary Insolvency Manager TONOT LLC: Creditors Must File Claims by March 2 TRANSCONTAINER OJSC: Fitch Assigns 'BB+' Long-Term IDRs URAL-STROY-KOMPLEKS LLC: Creditors Must File Claims by March 2 URALSVYAZINFORM OAO: Fitch Affirms Long-Term IDR at 'B+' VTOR-CHER-MET SE: Court Names Insolvency Manager WEST SIBERIAN: S&P Affirms S-T Counterparty Credit Rating at 'C' * Fitch Takes Rating Actions on Four Russian Securitizations S P A I N SERIE AYT: Moody's Cuts Rating on Class D Notes to 'B3' SANTANDER EMPRESAS: Fitch Cuts Rating on Class F Tranche to 'C' S W E D E N FORD MOTOR: Mulls Job and Supplier Cuts, In Talks on Volvo Sale S W I T Z E R L A N D ARTHUR BONDERER: Creditors Must File Proofs of Claim by Feb. 16 CASA NOVA: Deadline to File Proofs of Claim Set February 16 GENERAL MOTORS: To Start Talks on Debt Restructuring Today GRAFICOREKLAMEN LLC: Creditors Have Until Feb. 15 to File Claims HEAVY GRAPHICS: Proof of Claim Filing Deadline Set February 16 HG CHEMIE: Creditors' Proofs of Claim Due by February 15 HG CREAKTIV: February 18 Set as Deadline to File Claims KOCH LEDER: Creditors Must File Proofs of Claim by February 16 RUHR-PETROL JSC: Deadline to File Proofs of Claim Set Feb. 15 ZBINDEN ARCHITEKTEN: Creditors Have Until Feb. 16 to File Claims ZIELPUNKT JSC: Proof of Claim Filing Deadline Set February 16 U K R A I N E AYRIS LTD: Creditors Must File Claims by February 21 COALTRUST LLC: Creditors Must File Claims by February 21 DNIEPROEL LLC: Creditors Must File Claims by February 21 LAN LLC: Creditors Must File Claims by February 21 LOGOS LLC: Creditors Must File Claims by February 21 MEGAKHIM LLC: Creditors Must File Claims by February 21 PROJECT BUILDING: Creditors Must File Claims by February 21 SMILA FOOD: Creditors Must File Claims by February 21 STATE SAVINGS: Fitch Downgrades Individual Rating to 'E' from 'D' U N I T E D K I N G D O M ASTON ZORASTER: Appoints Joint Liquidators from Tenon Recovery INTERFRAME LTD: Calls in Joint Liquidators from Deloitte MERCIA TIMBER: Taps Joint Liquidators from Tenon Recovery OILEXCO INC: Obtains Court Order for CCAA Creditor Protection RAPIER ENGINEERING: Appoints Joint Liquidators from Tenon TATA STEEL UK: S&P Cuts Long-Term Corp. Credit Rating to 'B+' THOMAS SHAW: Appoints Joint Liquidators from Tenon Recovery WHITE LIGHTNING: Taps Liquidator from Tenon Recovery WOODCOTE BUILDING: Appoints Joint Liquidators from PKF WRIGHT GROUP: In Administration; PwC Appointed ZAVVI: Another 17 Stores Closed; 242 Jobs Affected * UK: KPMG Says Corporate Insolvencies to Rise in 2009 * Scottish Corporate Insolvencies Reach 228 in Third Qtr. 2008/09 * BOND PRICING: For the Week Feb. 2 to Feb. 6, 2009 ********* ============= A U S T R I A ============= AUSTRIAN AIRLINES: At Risk of Insolvency, OeIAG Says ---------------------------------------------------- Reuters reports that Austrian state holding company and key Austrian Airlines shareholder OeIAG warned the Austrian flag carrier could go insolvent if a planned takeover by Germany's Lufthansa (LHAG.DE) falls through. "We are fighting hard to avoid drifting towards insolvency," Reuters quoted OeIAG Chief Executive Peter Michaelis as saying. "However, I cannot rule out that possibility." AUA will be seeking the European Commission's approval on a EUR500 million (US$562 million) state aid that is part of the Lufthansa deal, Reuters discloses. Reuters relates according to Mr. Michaelis, a restructuring of AUA or a possible insolvency would be more expensive for Austrian taxpayers than the state aid. GRUENBERGEREFERDINGER LLC: Claims Registration Ends Feb. 24 ----------------------------------------------------------- Creditors owed money by LLC GruenbergerEferdinger (FN 83486z) have until Feb. 24, 2009, to file written proofs of claim to the court- appointed estate administrator: Thomas Kurz Roseggerstrasse 58 4020 Linz Austria Tel: 0732/78 43 31 Fax: 0732/78 43 31-57 E-mail: manuela.winkelmayr@haslinger-nagele.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on March 10, 2009, for the examination of claims at: Land Court of Linz Hall 522 Linz Austria Headquartered in Wilhering, Austria, the Debtor declared bankruptcy on Jan. 14, 2009, (Bankr. Case No. 17 S 1/09k). HEIDEN LLC: Claims Registration Period Ends February 17 ------------------------------------------------------- Creditors owed money by LLC Heiden (FN 86828p) have until Feb. 17, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Friedrich Nusterer Riemerplatz 1 3100 St. Poelten Austria Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-nusterer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on March 10, 2009, for the examination of claims at: Land Court of St. Poelten Room 216 St. Poelten Austria Headquartered in Andra im Lavanttal, Austria, the Debtor declared bankruptcy on Jan. 15, 2009, (Bankr. Case No. 14 S 9/09b). HENZO-FOTOALBEN LLC: Claims Registration Period Ends Feb. 17 ------------------------------------------------------------ Creditors owed money by LLC Henzo-Fotoalben (FN 88895d) have until Feb. 17, 2009, to file written proofs of claim to the court- appointed estate administrator: Hans-Peter Pfluegl Oberndorfer Ortsstrasse 56a 3130 Herzogenburg Austria Tel: 02782/83 553 Fax: 02782/83 553-55 E-mail: kanzlei@pfluegl-hutecek.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 a.m. on March 10, 2009, for the examination of claims at: Land Court of St. Poelten Room 216 St. Poelten Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on Jan. 14, 2009, (Bankr. Case No. 14 S 8/09f). KALUTEC ELEKTRO: Claims Registration Period Ends Feb. 23 -------------------------------------------------------- Creditors owed money by LLC Kalutec Elektro (FN 213721x) have until Feb. 23, 2009, to file written proofs of claim to the court- appointed estate administrator: Heimo Fresacher Herrengasse 1/4 9400 Wolfsberg Austria Tel: 04352/367 11 11 Fax: 04352/367 11-12 E-mail: rechtsanwalt@fresacher.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on March 10, 2009, for the examination of claims at: Land Court of Klagenfurt (729) Room 255 Klagenfurt Austria Headquartered in Andra im Lavanttal, Austria, the Debtor declared bankruptcy on Jan. 15, 2009, (Bankr. Case No. is 40 S 2/09y). LA BAU: Claims Registration Period Ends February 10 --------------------------------------------------- Creditors owed money by LLC La Bau (FN 297228a) have until Feb. 10, 2009, to file written proofs of claim to the court- appointed estate administrator: Robert Levovnik Priesterhausgasse 1/II 9020 Klagenfurt Austria Tel: 0463/50 43 43 Fax: 0463/50 43 43-43 E-mail: levovnik@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 17, 2009, for the examination of claims at: Land Court of Klagenfurt Meeting Room 225 Klagenfurt Austria Headquartered in Klagenfurt - Woelfnitz, Austria, the Debtor declared bankruptcy on Jan. 14, 2009, (Bankr. Case No. 41 S 9/09k). =========== F R A N C E =========== ALCATEL LUCENT: S&P Comments on CreditWatch Placement ----------------------------------------------------- Standard & Poor's Ratings Services commented on its CreditWatch placement of French telecommunications equipment and services supplier Alcatel Lucent. The 'BB-' long-term corporate credit and senior unsecured debt ratings on Alcatel Lucent remain on CreditWatch with negative implications, where they had originally been placed on Dec. 12, 2008, following the company's release of year-end 2008 unaudited results, including a EUR3.9 billion net loss for fourth-quarter 2008. On Dec. 31, 2008, Alcatel Lucent had gross on-balance-sheet debt of EUR6.0 billion, including the equity component of the company's convertible bonds. "The CreditWatch status reflects our expectation of declining revenues, a low operating margin, and negative free cash flow at Alcatel Lucent in 2009," said Standard & Poor's credit analyst Patrice Cochelin. Revenues declined by 5%, year-on-year, in 2008 and in fourth- quarter 2008, including double-digit drops in the core carrier segment (68% of 2008 revenues). Operating margin for 2008 was thin at 3%, albeit wider than 1% in 2007, including about 6% in the seasonally strong fourth-quarter 2008, broadly flat compared with fourth-quarter 2007. Free operating cash flow after gross capital expenditures and backing out changes in sold receivables showed somewhat lower cash burn of about EUR647 million in 2008, compared with EUR765 million in 2007, according to S&P's preliminary calculations. The bulk of the year-on-year improvement is attributable to fourth-quarter 2008, when FOCF was a positive EUR206 million, compared with a positive EUR104 million in fourth-quarter 2007. Cash restructuring of EUR172 million in fourth-quarter 2008 was EUR48 million lower than in fourth-quarter 2007. S&P has yet to fully understand the cash impact of Alcatel Lucent's postretirement benefit obligations and intellectual property settlements in 2008 and how these payments have affected comparability with prior periods. The company's adjusted results include several one-time items related to litigation settlements, gains on asset sales, and contract losses, which S&P will also analyze in more detail over the next few weeks. Alcatel Lucent also reported very large negative noncash items, namely a EUR4.7 billion impairment charge in the carrier division for 2008 -- including EUR3.9 billion in fourth-quarter 2008 -- and a reversal to a deficit in the company's until now highly positive pension and postretirement benefit funding status. "We intend to resolve the CreditWatch status in early March 2009, after discussing and reviewing with management Alcatel Lucent's recently refocused strategy, its business positions, and financial policy," said Mr. Cochelin. "As announced in our initial CreditWatch placement, a downgrade appears increasingly possible given Alcatel Lucent's rapidly deteriorating operating environment, margin pressures, and negative free cash flow." S&P is unlikely to downgrade Alcatel Lucent by more than one notch given S&P's expectation that Alcatel Lucent will sell its 20.8% stake in Thales S.A. to bolster near-term liquidity. Still, S&P does not rule out lowering the ratings by more than one notch if S&P is unable to ascertain the company's ability to meet 2010 and 2011 debt maturities. ============= G E R M A N Y ============= AQUATARIS GMBH: Claims Registration Period Ends March 10 -------------------------------------------------------- Creditors of Aquataris 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 10:20 a.m. on April 16, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Ingolstadt Meeting Room 28 I Schrannenstr. 3 85049 Ingolstadt 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: Mechthild Bruche Stahlstrasse 17 90411 Nuremberg Germany Tel: 0911/9512850 Fax: 0911/95128510 The District Court opened bankruptcy proceedings against the company on Jan. 20, 209. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Aquataris GmbH Attn: Nicole Gebhardt, Manager Am Lechfeld 34 85135 Titting Germany DFG KOMPLETTBAU: Claims Registration Period Ends March 23 --------------------------------------------------------- Creditors of DFG Komplettbau GmbH have until March 23, 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 April 21, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Volker Schlittgen Rosentalgasse 1-3 04105 Leipzig Germany Tel: 0341/984820 Fax: 0341/9848220 E-mail: leipzig@wellensiek.de The District Court opened bankruptcy proceedings against the company on Jan. 29, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DFG Komplettbau GmbH Weissestr. 34 04299 Leipzig Germany Attn: Barbel Streller, Manager Gorkistr. 18 04347 Leipzig Germany E-TEC FACILITY: Claims Registration Period Ends March 16 -------------------------------------------------------- Creditors of E-tec Facility Management GmbH have until March 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:02 a.m. on April 1, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Suedergraben 22 Flensburg 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: Ute Jacob Lorentzendamm 19 24103 Kiel IW Germany The District Court opened bankruptcy proceedings against the company on Jan. 29, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: E-tec Facility Management GmbH Heinrich-Hertz-Strasse 34 24837 Schleswig Germany Attn: Oliver Starszynski, Manager Gruehbogen 2 24991 Grosssolt Germany FHM BAUMANAGEMENT: Claims Registration Period Ends March 11 ----------------------------------------------------------- Creditors of FHM Baumanagement have until March 11, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on April 22, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Chemnitz Insolvency Tribunal Hall 3.011 Fuerstenstr. 21-23 09130 Chemnitz 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: Carsten Morgenstern Michaelstr. 71 09116 Chemnitz Germany Tel: 0371 381770 Fax: 0371 3817730 Email: chemnitz@hww-kanzlei.de The District Court opened bankruptcy proceedings against the company on Jan. 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FHM Baumanagement GmbH Attn: Heiko Stange Obere Hauptstr. 191 09228 Chemnitz Germany JAEGER CONTROLS: Claims Registration Period Ends March 27 --------------------------------------------------------- Creditors of Jaeger Controls GmbH have until March 27, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 29, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bingen am Rhein Room 9 Law Courts Mainzer Road 52 55411 Bingen am Rhein 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: Thomas Illy Mainzer Strasse 36 55411 Bingen am Rhein Germany Tel: 06721-185624 Fax: 06721-185625 The District Court opened bankruptcy proceedings against the company on Jan. 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jaeger Controls GmbH Attn: Dr. Jens Hoche, Manager Bahnhofstr. 2 55218 Ingelheim Germany LATINO ENTERPRISES: Claims Registration Period Ends March 13 ------------------------------------------------------------ Creditors of Latino Enterprises GmbH have until March 13, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11.10 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 Muehldorf a. Inn Hall 112 Innstrasse 1 Muehldorf 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: Martin Schoebe Ainmillerstrasse 11 80801 Munich Germany The District Court opened bankruptcy proceedings against the company on Jan. 28, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Latino Enterprises GmbH Attn: Franz Xaver Wittenberger, Manager Marienberg 119 84489 Burghausen Germany =========== G R E E C E =========== SEANERGY MARITIME: Gets Waiver on Loan Covenant; Suspends Dividend ------------------------------------------------------------------ Seanergy Maritime Holdings Corp. received a waiver on its market-value-to loan covenant. As part of the waiver, the Bank has put a temporary restriction on the Company's payment of dividends. Dale Ploughman, the Company's Chief Executive Officer, stated: "The waiver we received from Marfin Bank, our main bankers, is a positive development for our company and we believe is indicative of the excellent relationship we have with our lenders. "With all six of our vessels fixed under time charters for one year up to September 2009 at an average daily rate of about US$52,700 generating revenues of approximately US$110 million, we believe that we are already in a strong position. However, current market conditions dictate an increased level of prudence and vigilance to safeguard and then to increase shareholder value for the long term. "In this context, the temporary suspension of our dividend we believe will reinforce our company's liquidity and financial strength. We also believe it will enable us not only to weather the current challenging conditions in the shipping and financial markets but also position us to take full advantage of accretive expansion opportunities as these may occur." About Seanergy Maritime Seanergy Maritime Holdings Corp. (SHIP), the successor to Seanergy Maritime Corp. -- http://www.seanergymaritime.com/-- is a Marshall Islands corporation with its executive offices in Athens, Greece. The Company is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. The Company purchased and took delivery of six dry bulk carriers in the third and fourth quarters of 2008 from companies associated with members of the Restis family. Its current fleet is comprised of two Panamax, two Supramax and two Handysize dry bulk carriers with a combined cargo-carrying capacity of 317,743 dwt and an average fleet age of approximately 11 years. The Company's common stock and warrants trade on the NASDAQ Global Market under the symbols SHIP and SHIP.W, respectively. Prior to October 15, 2008, the Company's common stock and warrants traded on the NYSE Alternext US LLC (formally known as AMEX) under the symbols SRG, SRG.W, respectively. ============= I R E L A N D ============= CHARTBUSTERS: 17 Stores to Close; 60 Jobs Affected -------------------------------------------------- Belfast Telegraph reports that the High Court will close 17 of Chartbusters' 37 stores in the coming weeks. According to Belfast Telegraph, the closures will result in the loss of 60 jobs. Chartbusters employs 267 people, Belfast Telegraph discloses. Court Grants Court Protection On Jan. 29, 2009, the TCR-Europe, citing the Irish Times, reported Mr Justice Peter Kelly granted court protection to Chartbusters. Mr Justice Kelly would appoint Neil Hughes as examiner to the company, the Irish Times stated. The judge, as cited by the Irish Times, said the company is insolvent and would have a shortfall between assets and liabilities of some EUR246,000 as a going concern and of some EUR4.8 million if wound up. The judge, the Irish Times noted, agreed to appoint an examiner after reports from the independent account and interim examiner expressed the view the company had a reasonable prospect of survival if certain conditions, including the closure of 17 of its 37 stores, are met. According to the Irish Times, the number of expressions of interest by potential investors had risen from 7 to 17. The judge, the report added, also took into account other creditors were not opposing examinership. On Jan. 9, 2009, the TCR-Europe reported that according to the Irish Times, Mr Justice John Edwards appointed Neill Hughes, of Hughes Blake Chartered Accountants, as interim examiner to Chartbusters. Debts The Irish Times recounted Gary McCarthy, counsel for Chartbusters, told Mr Justice Edwards in the High Court that Chartbusters racked up debts of about EUR20 million. Citing Mr. McCarthy, the Irish Times disclosed the company owed EUR12 million to Bank of Scotland (Ireland), KBC Bank, Lombard Ireland and Friends First Finance Ltd., while landlords were being owed EUR2 million. ChartBusters' director Richard Murphy, as cited by the Irish Times, said the company was currently unable to repay the interest due on the loans and was servicing about EUR900,000 a year in leasing payments. The Irish Times stated group turnover had dropped to EUR12.2 million for the period to April 30, 2008, and costs, in particular rent, had eroded profits. EIRLES TWO: S&P Withdraws 'CCC' Ratings on EUR50 Mil. Notes ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'CCC' credit rating on the EUR50 million floating-rate portfolio credit-linked secured notes series 152 issued by Eirles Two Ltd. The rating withdrawal follows an early redemption of the notes. =================== K A Z A K H S T A N =================== ALLIANCE BANK OA: Seeks Loan Waiver After Gov't Take Over --------------------------------------------------------- Reuters reports Alliance Bank OA has sought to reassure investors it was fully capable of repaying all of its outstanding foreign debt following its effective nationalization last week. According to the news agency, the Kazakh government has agreed to buy a 76 percent stake in Alliance for less than a dollar as part of its bailout of the country's troubled banking sector. In an earlier report, Reuters said Alliance had asked its foreign creditors not to demand early debt repayment due to the change of its majority shareholder. "Alliance bank is currently involved in legal work on getting waivers from foreign investors," Managing Director Anvar Khaltayev told Reuters. The bank's external debt is about US$3.9 billion, Reuters says. In a Feb. 2 statement, Alliance disclosed its major shareholder, Seimar Alliance Financial Corporation ("SAFC"), has decided to sell 76% of its stake in the bank to Samruk-Kazyna National Welfare Fund ("Samruk-Kazyna") for further capitalization and increased financial stability of the bank. Reuters says SAFC will keep an 8 percent stake in the bank, with the remaining shares in free float traded in London and domestically. With the stake sale, Alliance disclosed it signed a bank deposit agreement with Samruk-Kazyna for placement of a KZT24 billion deposit with the bank to support its financial stability and further capitalization. Probation Nariman Gizitdinov at Bloomberg News reports the Kazakhstan Stock Exchange ("KASE") said it put Alliance on probation after the lender failed to fulfill dollar-based obligations. Alliance won't be allowed to participate in any currency transactions without advance payment for three months, the exchange said in a statement obtained by Bloomberg News. In a Feb. 5 statement, Alliance said the bank considers it necessary to clarify situation with non-payment of KZT549 million in favor of Kazakhstan Stock Exchange. The failure, Alliance said, was caused by technical breakdown, and the consequences have already been eliminated. New Chairman Alliance said it has appointed Maxat Kabashev as chairman of the bank's Board. Mr. Kabashev previously served as Chairman of the Board of JSC Distressed Assets Fund. Alliance also appointed Kadyrzhan Kabdoshevich Damitov as adviser to its Chairman of the Board. Mr. Damitov, 49 years old, formerly chaired the National Bank of Kazakhstan and was an economic advisor to the President of Kazakhstan as well. According to Alliance, the decision on changes to the management of the bank was made by the Board of Directors in view of the necessity to meet new challenges that the bank faces in times of the global financial turmoil. EGM Alliance scheduled an extraordinary general meeting of its shareholders on March 10, 2009, at 10.30 a.m. (local time). The meeting will be held at: 1st conference hall 3rd floor 50, Furmanov Street Almaty, Kazakhstan About Alliance Bank Based in Almaty, Kazakhstan, Alliance Bank OA (LI:ALLB) -- http://www.alb.kz/-- a.k.a Alliance Bank JSC, is a commercial bank. As at December 31, 2007, Alliance had 24 branches and 199 mini-branches in the Republic of Kazakhstan. The Bank is organized on the basis of three main segments: Retail banking, which represents private banking services, private customer current accounts, savings, deposits, investment savings products, custody, credit and debit cards, consumer loans and mortgages; Corporate banking, which represents direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products, and Investment banking, which represents financial instruments trading, structured financing, corporate leasing, and merger and acquisitions advice. ALLIANCE BANK OA: Fitch Affirms 'BB-' IDR with Neg. Outlook ----------------------------------------------------------- Fitch Ratings has affirmed Kazakhstan-based BTA Bank's (BTA) and Alliance Bank's (Alliance) Long-term Issuer Default ratings (IDRs) at 'BB' and 'BB-'(BB minus), respectively, with Negative Outlooks. At the same time, the agency downgraded the Individual ratings of both banks to 'F', and placed BTA's perpetual preferred securities on Rating Watch Negative (RWN). The agency also put the ratings of four foreign affiliates of BTA - BTA Russia, BTA Kazan, BTA Georgia and BTA Belarus - on RWN. The ratings of Temirbank, a domestic subsidiary of BTA, including its Long-term IDR of 'BB-'(BB minus) with a Negative Outlook, are affirmed. The rating actions follows the recent announcement that the Kazakhstan government, through the National Welfare Fund Samruk- Kazyna (SK), is acquiring a 78.14% stake in BTA through the purchase of a new share issue for KZT251bn. SK is also considering an offer from Seimar Alliance Financial Corporation to purchase a 76% stake in Alliance for the symbolic amount of KZT100; SK has also placed a KZT24bn deposit with Alliance to support its liquidity. In Fitch's view, these events confirm the agency's long-stated position that the Kazakh authorities would be likely to have a high propensity to support, in case of need, banks which they consider to be systemically important. However, the two-notch differential between the Long-term foreign currency IDR of the sovereign ('BBB-' (BBB minus)/Negative Outlook) and those of BTA, Kazkommertsbank and Halyk Bank (all rated 'BB'/Negative Outlook) continues to factor in the difference in the ability of the authorities to service the sovereign's own, relatively moderate, debt and to provide sufficient support to the banks, in case of need, to meet their much larger obligations. The larger three-notch differential between the sovereign rating and that of Alliance takes into account the latter's lesser systemic importance, reflected in its smaller and declining market shares, which could make it potentially somewhat less likely than the big three banks to receive support in the future. The lower rating also considers the fact that the sale of the bank to SK has yet to go through and the still moderate amount of support which the bank has received to date. In Fitch's view, the possibility of SK not acquiring the bank cannot be fully excluded, in particular in view of uncertainty as to whether the acquisition might trigger acceleration of some of the bank's debt. The Negative Outlooks on BTA's and Alliance's IDRs reflect those on the sovereign rating. Any further downgrade of the sovereign would likely result in a downgrade of the banks. The banks could also be downgraded should the Kazakh authorities seek to impose a restructuring of their obligations, for example, in response to any attempts by creditors to accelerate the banks' debt. The 'F' Individual ratings of BTA and Alliance reflect Fitch's opinion that the banks have failed and would have defaulted in the short- to medium-term without the recent and potential future external support made available to the banks by the Kazakh authorities. BTA's continued aggressive loan growth in 2008, which has focused to a large degree on the Russian real estate sector and has been funded predominantly by shorter-term inter-bank borrowings and customer deposits, had severely compromised the bank's capital and liquidity positions. The recent equity injection alleviates near- term liquidity concerns to a large degree and leaves the bank significantly better-positioned to meet its substantial 2009 international debt repayments. The recapitalization, and now much higher loan impairment reserve (approximately 24.9% of gross loans in regulatory accounts, Fitch understands), has also substantially increased the capacity of the bank's balance sheet to absorb losses going forward. However, in light of the high risk nature of much of the bank's lending, the fact that the ultimate beneficiaries of many of the higher-risk loans may, in Fitch's view, be affiliated with the bank's (now) minority shareholders, the still low level of loan impairment recognition on the Kazakh loan book, the ongoing deterioration in the domestic operating environment and the recent devaluation of the KZT, BTA may yet be forced to book further write downs and require additional capital injections in the future. Alliance's most recent (end-January) reported liquidity, non- performing loan (NPL) and capital metrics do not suggest that the bank's default was imminent, although Fitch has been informed that recent margin calls on outstanding FX derivatives have represented a significant drain on the bank's liquidity. However, Fitch understands that loan performance has weakened further in Q408 and 2009 to date as a result of the ongoing deterioration in the operating environment, a trend which could intensify following the devaluation of the KZT and result in critical pressure on liquidity and/or capital in 2009, absent external support. The RWN on BTA's US$400 million Tier 1 perpetual preferred securities (rated 'B-' (B minus)) reflects greater uncertainty as to whether future dividend payments on the securities will be made in light of the bank's weak stand-alone financial position and the dependence of the bank on support being made available by the Kazakh authorities. Fitch notes that the main condition for dividend non-payment (that a dividend payment would cause a breach of regulatory capital requirements by BTA) may not be met in the near-term as the dividend payment is relatively small and the Kazakh authorities would probably seek to maintain BTA's capital ratio with at least a small cushion above the regulatory minimum. However, given the level of uncertainty surrounding the deferral decision process and the treatment of the securities by the Kazakh authorities, as well as the potential for future deterioration in the stand-alone financial position of the bank, Fitch has placed the rating on RWN. The RWN on the ratings of BTA's foreign affiliates reflects heightened uncertainty over SK's strategy in respect to those banks, and hence its propensity to provide support to them, in case of need. This uncertainty is greatest in respect to those banks where BTA holds only a minority stake (BTA Russia, BTA Kazan and BTA Georgia), and particularly acute in respect to BTA Russia, where BTA owns only a 22% stake, albeit Fitch understands that BTA still retains an option to increase its stake in BTA Russia to a majority one. Fitch will resolve the RWN on these banks on understanding better SK's strategy in respect to them; should Fitch cease to factor support into the banks' ratings, downgrades could be by more than one notch. The affirmation of Temirbank's ratings reflects Fitch's greater certainty that, as a majority- owned, domestically-based subsidiary of BTA, it would be likely to benefit, together with BTA, from any support made available by the Kazakh authorities. In light of the ongoing deterioration in the Kazakh operating environment, in particular as a result of the impact of lower oil prices and the devaluation of the KZT, Fitch will continue to assess closely the potential for this to have a negative impact on the credit profiles and ratings of other banks in the system. Rating actions: BTA Bank (BTA) Long-term foreign currency IDR: affirmed at 'BB'; Outlook Negative Long-term local currency IDR: affirmed at 'BB'; Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Short-term local currency IDR: affirmed at 'B'Individual rating: downgraded to 'F' from 'D'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB' Senior unsecured debt: affirmed at 'BB' Tier 1 perpetual preferred securities: 'B-' (B minus); placed on Rating Watch Negative Alliance Bank (Alliance) Long-term foreign currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Individual rating: downgraded to 'F' from 'D/E'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB-' (BB minus) Senior unsecured debt: affirmed at 'BB-' (BB minus) Temirbank Long-term foreign currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Individual rating: affirmed at 'D/E'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB-' (BB minus)Senior unsecured debt: affirmed at 'BB-' (BB minus) LLS BTA Bank (Russia) (BTA Russia) Long-term foreign currency IDR 'B'; placed on Rating Watch Negative Short-term foreign currency IDR 'B'; placed on Rating Watch NegativeIndividual rating: 'D/E'; placed on Rating Watch NegativeNational Long-term rating: 'BBB-(BBB minus)(rus)'; placed on Rating Watch NegativeSupport rating: '4'; placed on Rating Watch NegativeSenior unsecured debt: 'B'; placed on Rating Watch Negative; Recovery Rating affirmed at 'RR4' CJSC BTA Bank (Belarus) (BTA Belarus) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: affirmed at 'E' Support rating: '4'; placed on Rating Watch Negative JSC Bank BTA-Kazan (OJSC) (BTA Kazan) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: 'D/E'; placed on Rating Watch NegativeNational Long-term rating: 'BBB-(BBB minus)(rus)'; placed on Rating Watch NegativeSupport rating: '4'; placed on Rating Watch Negative JSC BTA Bank (Georgia) (BTA Georgia) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: affirmed at 'E' Support rating: '4'; placed on Rating Watch Negative About Alliance Bank Based in Almaty, Kazakhstan, Alliance Bank OA (LI:ALLB) -- http://www.alb.kz/-- a.k.a Alliance Bank JSC, is a commercial bank. As at December 31, 2007, Alliance had 24 branches and 199 mini-branches in the Republic of Kazakhstan. The Bank is organized on the basis of three main segments: Retail banking, which represents private banking services, private customer current accounts, savings, deposits, investment savings products, custody, credit and debit cards, consumer loans and mortgages; Corporate banking, which represents direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products, and Investment banking, which represents financial instruments trading, structured financing, corporate leasing, and merger and acquisitions advice. BTA BANK: Fitch Affirms 'BB' IDR with Negative Outlook ------------------------------------------------------ Fitch Ratings has affirmed Kazakhstan-based BTA Bank's (BTA) and Alliance Bank's (Alliance) Long-term Issuer Default ratings (IDRs) at 'BB' and 'BB-'(BB minus), respectively, with Negative Outlooks. At the same time, the agency downgraded the Individual ratings of both banks to 'F', and placed BTA's perpetual preferred securities on Rating Watch Negative (RWN). The agency also put the ratings of four foreign affiliates of BTA - BTA Russia, BTA Kazan, BTA Georgia and BTA Belarus - on RWN. The ratings of Temirbank, a domestic subsidiary of BTA, including its Long-term IDR of 'BB-'(BB minus) with a Negative Outlook, are affirmed. The rating actions follows the recent announcement that the Kazakhstan government, through the National Welfare Fund Samruk- Kazyna (SK), is acquiring a 78.14% stake in BTA through the purchase of a new share issue for KZT251bn. SK is also considering an offer from Seimar Alliance Financial Corporation to purchase a 76% stake in Alliance for the symbolic amount of KZT100; SK has also placed a KZT24bn deposit with Alliance to support its liquidity. In Fitch's view, these events confirm the agency's long-stated position that the Kazakh authorities would be likely to have a high propensity to support, in case of need, banks which they consider to be systemically important. However, the two-notch differential between the Long-term foreign currency IDR of the sovereign ('BBB-' (BBB minus)/Negative Outlook) and those of BTA, Kazkommertsbank and Halyk Bank (all rated 'BB'/Negative Outlook) continues to factor in the difference in the ability of the authorities to service the sovereign's own, relatively moderate, debt and to provide sufficient support to the banks, in case of need, to meet their much larger obligations. The larger three-notch differential between the sovereign rating and that of Alliance takes into account the latter's lesser systemic importance, reflected in its smaller and declining market shares, which could make it potentially somewhat less likely than the big three banks to receive support in the future. The lower rating also considers the fact that the sale of the bank to SK has yet to go through and the still moderate amount of support which the bank has received to date. In Fitch's view, the possibility of SK not acquiring the bank cannot be fully excluded, in particular in view of uncertainty as to whether the acquisition might trigger acceleration of some of the bank's debt. The Negative Outlooks on BTA's and Alliance's IDRs reflect those on the sovereign rating. Any further downgrade of the sovereign would likely result in a downgrade of the banks. The banks could also be downgraded should the Kazakh authorities seek to impose a restructuring of their obligations, for example, in response to any attempts by creditors to accelerate the banks' debt. The 'F' Individual ratings of BTA and Alliance reflect Fitch's opinion that the banks have failed and would have defaulted in the short- to medium-term without the recent and potential future external support made available to the banks by the Kazakh authorities. BTA's continued aggressive loan growth in 2008, which has focused to a large degree on the Russian real estate sector and has been funded predominantly by shorter-term inter-bank borrowings and customer deposits, had severely compromised the bank's capital and liquidity positions. The recent equity injection alleviates near- term liquidity concerns to a large degree and leaves the bank significantly better-positioned to meet its substantial 2009 international debt repayments. The recapitalization, and now much higher loan impairment reserve (approximately 24.9% of gross loans in regulatory accounts, Fitch understands), has also substantially increased the capacity of the bank's balance sheet to absorb losses going forward. However, in light of the high risk nature of much of the bank's lending, the fact that the ultimate beneficiaries of many of the higher-risk loans may, in Fitch's view, be affiliated with the bank's (now) minority shareholders, the still low level of loan impairment recognition on the Kazakh loan book, the ongoing deterioration in the domestic operating environment and the recent devaluation of the KZT, BTA may yet be forced to book further write downs and require additional capital injections in the future. Alliance's most recent (end-January) reported liquidity, non- performing loan (NPL) and capital metrics do not suggest that the bank's default was imminent, although Fitch has been informed that recent margin calls on outstanding FX derivatives have represented a significant drain on the bank's liquidity. However, Fitch understands that loan performance has weakened further in Q408 and 2009 to date as a result of the ongoing deterioration in the operating environment, a trend which could intensify following the devaluation of the KZT and result in critical pressure on liquidity and/or capital in 2009, absent external support. The RWN on BTA's US$400 million Tier 1 perpetual preferred securities (rated 'B-' (B minus)) reflects greater uncertainty as to whether future dividend payments on the securities will be made in light of the bank's weak stand-alone financial position and the dependence of the bank on support being made available by the Kazakh authorities. Fitch notes that the main condition for dividend non-payment (that a dividend payment would cause a breach of regulatory capital requirements by BTA) may not be met in the near-term as the dividend payment is relatively small and the Kazakh authorities would probably seek to maintain BTA's capital ratio with at least a small cushion above the regulatory minimum. However, given the level of uncertainty surrounding the deferral decision process and the treatment of the securities by the Kazakh authorities, as well as the potential for future deterioration in the stand-alone financial position of the bank, Fitch has placed the rating on RWN. The RWN on the ratings of BTA's foreign affiliates reflects heightened uncertainty over SK's strategy in respect to those banks, and hence its propensity to provide support to them, in case of need. This uncertainty is greatest in respect to those banks where BTA holds only a minority stake (BTA Russia, BTA Kazan and BTA Georgia), and particularly acute in respect to BTA Russia, where BTA owns only a 22% stake, albeit Fitch understands that BTA still retains an option to increase its stake in BTA Russia to a majority one. Fitch will resolve the RWN on these banks on understanding better SK's strategy in respect to them; should Fitch cease to factor support into the banks' ratings, downgrades could be by more than one notch. The affirmation of Temirbank's ratings reflects Fitch's greater certainty that, as a majority- owned, domestically-based subsidiary of BTA, it would be likely to benefit, together with BTA, from any support made available by the Kazakh authorities. In light of the ongoing deterioration in the Kazakh operating environment, in particular as a result of the impact of lower oil prices and the devaluation of the KZT, Fitch will continue to assess closely the potential for this to have a negative impact on the credit profiles and ratings of other banks in the system. Rating actions: BTA Bank (BTA) Long-term foreign currency IDR: affirmed at 'BB'; Outlook Negative Long-term local currency IDR: affirmed at 'BB'; Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Short-term local currency IDR: affirmed at 'B'Individual rating: downgraded to 'F' from 'D'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB' Senior unsecured debt: affirmed at 'BB' Tier 1 perpetual preferred securities: 'B-' (B minus); placed on Rating Watch Negative Alliance Bank (Alliance) Long-term foreign currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Individual rating: downgraded to 'F' from 'D/E'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB-' (BB minus) Senior unsecured debt: affirmed at 'BB-' (BB minus) Temirbank Long-term foreign currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative Short-term foreign currency IDR: affirmed at 'B'Individual rating: affirmed at 'D/E'Support rating: affirmed at '3'Support Rating Floor: affirmed at 'BB-' (BB minus)Senior unsecured debt: affirmed at 'BB-' (BB minus) LLS BTA Bank (Russia) (BTA Russia) Long-term foreign currency IDR 'B'; placed on Rating Watch Negative Short-term foreign currency IDR 'B'; placed on Rating Watch NegativeIndividual rating: 'D/E'; placed on Rating Watch NegativeNational Long-term rating: 'BBB-(BBB minus)(rus)'; placed on Rating Watch NegativeSupport rating: '4'; placed on Rating Watch NegativeSenior unsecured debt: 'B'; placed on Rating Watch Negative; Recovery Rating affirmed at 'RR4' CJSC BTA Bank (Belarus) (BTA Belarus) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: affirmed at 'E' Support rating: '4'; placed on Rating Watch Negative JSC Bank BTA-Kazan (OJSC) (BTA Kazan) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: 'D/E'; placed on Rating Watch NegativeNational Long-term rating: 'BBB-(BBB minus)(rus)'; placed on Rating Watch NegativeSupport rating: '4'; placed on Rating Watch Negative JSC BTA Bank (Georgia) (BTA Georgia) Long-term foreign currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch NegativeIndividual rating: affirmed at 'E' Support rating: '4'; placed on Rating Watch Negative BTA BANK: S&P Places Low-B Ratings on CreditWatch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services placed its stand-alone and/or underlying ratings on four BTA Bank JSC's BTA DPR Finance Co. (JSC Bank TuranAlem) financial future flow transactions backed by Kazakh diversified payment rights on CreditWatch with negative implications. These rating actions follow S&P's Feb. 3, 2009, placement of S&P's 'BB' long-term counterparty credit rating on BTA on CreditWatch developing. The Feb. 3, 2009, rating actions are based on S&P's review of the effects of the Kazakhstan government's acquisition of a 78% stake in BTA through a US$2.07 billion injection of new equity. The CreditWatch placement on BTA reflects S&P's concern that the bank's stand-alone creditworthiness could weaken further as a result of the deteriorating asset quality and the continuing funding and liquidity challenges. Standard & Poor's will continue to analyze the Kazakhstan government's actions and the effect those actions could have on these future flow transactions' structure and documentation. Standard & Poor's ratings on BTA's DPR financial future flow transactions reflect S&P's survivability assessment of BTA and the strong enhancement levels through overcollateralization and other structural features that mitigate sovereign interference risk and other credit risks. S&P's survivability assessment addresses BTA's ability to generate the necessary assets to service the transactions even under a state of selective default or other financial impairment over the deals' term. The series 2007-A, 2007-B, and 2007-C notes benefit from an insurance policy provided by Financial Guaranty Insurance Co. (FGIC; 'CCC' insurer financial enhancement rating), MBIA Insurance Corp. ('AA' insurer financial enhancement rating), and Ambac Assurance Corp. ('A' insurer financial enhancement rating), respectively. The full financial guarantee insurance policies that the respective insurer provides, guarantee the timely payment of interest and principal according to the transactions' terms. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer (monoline) or Standard & Poor's underlying rating on the securities. The 'BBB-' long-term counterparty credit rating on the FGIC-insured 2007-A series reflects the corresponding SPUR and the delinking of the rating from the bond insurer's rating. The 'AA' and 'A' long-term counterparty credit ratings on the 2007-B and 2007-C series, respectively, reflect the respective bond insurer's financial enhancement rating and are not affected by this rating action. The series 2007-D notes do not benefit from an insurance policy and are rated on a stand-alone basis. BTA's DPR program currently has US$750 million outstanding and exhibited a 54x quarterly debt service coverage ratio as of Dec. 31, 2008 (a strong level). This current DSCR level is slightly lower than BTA's historical 63x quarterly average. S&P will continue to surveil the issue ratings on these future flow securitizations, and S&P will revise them as necessary to reflect any future changes in the transactions' underlying credit quality. Ratings Placed On Creditwatch Negative BTA DPR Finance Co. Stand-alone or underlying rating -------------------------------- Series To From ------ -- ---- 2007-A* BBB-/Watch Neg BBB- 2007-B� BBB-/Watch Neg BBB- 2007-C� BBB-/Watch Neg BBB- 2007-D� BBB-/Watch Neg BBB- * The rating action affects both the stand-alone and the underlying ratings. � The rating action only affects the underlying rating. � The rating action only affects the stand-alone rating; there is no underlying rating. EURO BUILD: Proof of Claim Deadline Slated for March 13 ------------------------------------------------------- LLP Construction Company Euro Build has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Construction Company Euro Build Energetikov St. 64a Ekibastuz Pavlodar FIRMDIGOR-INTER LLP: Creditors Must File Claims by March 13 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Firmdigor-Inter insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Building Of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan FIRST TEAM: Claims Filing Period Ends March 13 ---------------------------------------------- LLP First Team Technology has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP First Team Technology Sadovnikov St. 68 Almaty Kazakhstan Tel: 8 (7272) 58-40-50 JENIS LLP: Creditors' Proofs of Claim Due on March 13 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Jenis insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi St. 29 Kyzylorda Kazakhstan LANGUAGES ATYRAU: Claims Registration Period Ends March 13 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Center Of World Languages Atyrau insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Abai St. 10a Atyrau Kazakhstan Tel: 8 (71222) 32-90-02 NURBEK KURYLYS: Proof of Claim Deadline Slated for March 13 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Nurbek Kurylys insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Abai St. 10a Atyrau Kazakhstan Tel: 8 (71222) 32-90-02 REAL PROMOTION: Creditors Must File Claims by March 13 ------------------------------------------------------ LLP Real Promotion Centre has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Real Promotion Centre Bogenbai batyr St. 104 Almaty Kazakhstan Tel: 8 (7272) 58-40-50 ROSS INVEST: Claims Filing Period Ends March 13 ----------------------------------------------- LLP Kaz Ross Invest has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Kaz Ross Invest Seifullin St. 63/2 Astana Kazakhstan SVETOVYE TECHNOLOGIYI: Creditors' Proofs of Claim Due on March 13 ----------------------------------------------------------------- Representation of LLP Light Technologies Svetovye Technologiyi has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLP Light Technologies Svetovye Technologiyi Office 501 Gogol St. 39 Almaty Kazakhstan VIKTORIYA NS: Claims Registration Period Ends March 13 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola has declared LLP Viktoriya NS insolvent. Creditors have until March 13, 2009, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov St. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 =================== K Y R G Y Z S T A N =================== DAEHAN AND COMPANY: Creditors Must File Claims by February 27 ------------------------------------------------------------- LLC Daehan and Company has declared insolvency. Creditors have until Feb. 27, 2009, to submit proofs of claim at: LLC Daehan and Company Baitik Baatyr Str. 57 Bishkek Kyrgyzstan Tel: (0-772) 41-44-11 ===================== N E T H E R L A N D S ===================== SCEPTRE CAPITAL: S&P Withdraws 'CCC' Ratings on Secured Notes ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'CCC-' credit ratings on the secured credit-linked variable-rate notes series 2004-8 and 2004-9 issued by Sceptre Capital B.V. The rating withdrawals follow an early redemption of the notes. =========== R U S S I A =========== EVROSTROY-PROEKT LLC: Creditors Must File Claims by March 2 ----------------------------------------------------------- Creditors of LLC Evrostroy-Proekt (TIN 7453157098, PSRN 1067453019171) (Construction) have until March 2, 2009, to submit proofs of claims to: D. Belozertsev Insolvency Manager Office 4 Lunacharskogo St. 6 456318 Miass Russia Tel: 8 (3513) 53�78-77 The Arbitration Court of Chelyabinskaya will convene at 11:10 a.m. on Feb. 11, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A76�7452/2008�55-124. The Debtor can be reached at: LLC Evrostroy-Proekt Lenina prospect 87-110 Chelyabinsk Russia KURGAN-PROM-BANK OJSC: Creditors Must File Claims by April 2 ------------------------------------------------------------ Creditors of OJSC Kurgan-Prom-Bank have until April 2, 2009, to submit proofs of claims to: Investment Insurance Agency Acting as Insolvency Manager Gogolya St. 17/1 640000 Kurgan Russia Tel: 8(3522)45-92-92 8-800-200-08-05 The Arbitration Court of Kurganskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A34�6954/2008. The Debtor can be reached at: OJSC Kurgan-Prom-Bank Gogolya St. 17/1 640000 Kurgan Russia MIRAX GROUP: Moody's Cuts Corporate Family Rating to 'Caa1' ---------------------------------------------------------- Moody's Investors Service has downgraded the B3 corporate family rating and Baa3.ru national scale rating of Mirax Group Holding B.V. to Caa1 and Ba3.ru respectively. At the same time, Moody's has placed all rating under review for possible downgrade. Although, Moody's recognizes Mirax as a prominent real estate developer in Moscow with visible high quality projects under construction, the rating action was prompted by the fact that Mirax has a very short maturity profile of its debt with a total US$380 million within the next few weeks, which makes the company dependent on its ability to continue to generate projected cash flow or arrange alternative refinancing facilities. Moody's is concerned with the fact that so far Mirax may not have sufficient available cash resources to resolve the immediate pending refinancing issues including the refinancing of maturing bank debt totaling of US$200 million, and the potential CLN put option of US$180 million expected in March 2009. At the same time the worsening operating environment in the industry is evidently leading to significantly lower cash flows generated by Mirax than has been previously anticipated, and hence impact its financial strength going forward. The review will focus on these: - to monitor the progress achieved with the immediate refinancing of short term maturities - to assess the availability of liquidity to cover operating needs including changes in working capital, debt repayments and mandatory capex investments. Moody's last rating action was taken on December 9 2008 when Moody's Investors Service assigned a B3 corporate family rating to Mirax Group Holding B.V. and withdrew the B2 CFR on review for downgrade of Mirax Group LLC. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, assigned Baa3.ru national scale rating to Mirax Group Holding B.V. and withdrew the A3 national scale rating of Mirax Group LLC. The outlook of all rating was negative. Mirax Group B.V. was incorporated in 2008 in the Netherlands as a result of corporate restructuring of Mirax Group. It is now one of the five largest real estate development companies in Moscow, with a strong market position in the development of business class offices and premium housing. Apart from developing several residential and commercial real estate complexes, Mirax is currently constructing the Federation Tower which, when finished, will be the tallest building in Europe. In 2007, the company reported revenue of approximately US$1.28 billion and EBITDA of US$608 million. The company is majority owned by Mr. Sergey Polonsky, chairman of the board of directors. POLIGRAPH-MASH OJSC: Creditors Must File Claims by March 2 ---------------------------------------------------------- Creditors of OJSC Poligraph-Mash (Machinery, Metal Structures) have until March 2, 2009, to submit proofs of claims to: R. Kochkarov Temporary Insolvency Manager Post User Box 95 369000 Cherkessk Russia The Arbitration Court of Dagestan commenced bankruptcy supervision procedure. The case is docketed under Case No. A15-1968/2008. The Court is located at: The Arbitration Court of Dagestan Prospect R. Gamzatova 91 367002 Makhachkala Dagestan Russia The Debtor can be reached at: OJSC Poligraph-Mash Shamilya St. 4 Kizilyurt Dagestan Russia SERPUKHOVSKIY AUTOMOBILE: Creditors Must File Claims by March 2 --------------------------------------------------------------- Creditors of OJSC Serpukhovskiy Automobile Plant have until March 2, 2009, to submit proofs of claims to: A. Miller Temporary Insolvency Manager Post User Box 201 GOS-2 423452 Al'metyevsk Tatarstan Russia The Arbitration Court of Moskovskaya will convene at 10:00 a.m. on May 7, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A41-26725/08. The Court is located at: The Arbitration Court of Moskovskaya Hall 440 Prospect A. Sakharova 18 Moscow Russia The Debtor can be reached at: OJSC Serpukhovskiy Automobile Plant Pushkina St. 45 Serpukhov Moskovskaya Russia STERLIMAK-STROY TRUST: Creditors Must File Claims by March 2 ------------------------------------------------------------ Creditors of OJSC Sterlimak-Stroy Trust have until March 2, 2009, to submit proofs of claims to: A. Shaykhetdinov Temporary Insolvency Manager Lenina Prospect 2 453107 Sterlimak Bashkortostan Russia The Arbitration Court of Bashkortostan will convene at 2:00 p.m. on July 15, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A07-18926/2008. The Court is located at: The Arbitration Court of Bashkortostan Prospect S. Yulayeva 7 Ufa Bashkortostan Russia The Debtor can be reached at: OJSC Sterlimak-Stroy Trust Lenina Prospect 2 453107 Sterlimak Bashkortostan Russia TANGRA-OIL LLC: Court Names Temporary Insolvency Manager -------------------------------------------------------- The Arbitration Court of Moscow appointed M. Kolesnikov as Temporary Insolvency Manager for LLC Tangra-Oil (TIN 7701180403). The case is docketed under Case No. A40-80634/08- 74-269B. He can be reached at: Office 802 Avtozavodskaya St. 14/23 115280 Moscow Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya St. 10 107078 Moscow Russia The Debtor can be reached at: LLC Tangra-Oil Spartakovskaya Ploshchad' 14 107082 Moscow Russia TONOT LLC: Creditors Must File Claims by March 2 ------------------------------------------------ Creditors of LLC Tonot Construction Company (TIN 5037060679) have until March 2, 2009, to submit proofs of claims to: Yu. Zaytsev Temporary Insolvency Manager Office 211 Pobedy St. 2 Protvino 142281 Moskovskaya Russia The Arbitration Court of Moscow will convene at 10:00 a.m. on April 24, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A41�1120/09. The Court is located at: The Arbitration Court of Moscow Hall 440 Novaya Basmannaya St. 10 107078 Moscow Russia The Debtor can be reached at: LLC Tonot Zavodskiy Proezd 16 Protvino 142281 Moskovskaya Russia TRANSCONTAINER OJSC: Fitch Assigns 'BB+' Long-Term IDRs ------------------------------------------------------- Fitch Ratings has assigned OJSC Transcontainer Long-term foreign and local currency Issuer Default Ratings of 'BB+', a senior unsecured rating of 'BB+', Short-term foreign and local currency IDRs of 'B', and a National Long-term rating of 'AA(rus)'. The Outlooks for the Long-term IDRs and the National Long-term rating are Negative. Transcontainer's ratings reflect the strong strategic and operational ties between Transcontainer and its parent, the state- owned Russian railway monopoly, JSC Russian Railways (RZD 'BBB'/'F3'/Negative). In line with Fitch's Parent-Subsidiary Rating linkage methodology, Transcontainer's IDRs have been notched down two levels from those of RZD. Fitch's expectation that RZD will maintain a majority stake in Transcontainer, as well as an explicit support policy towards Transcontainer (to the extent that it is in compliance with the current Russian rail reform), has been factored into the ratings. The Negative Outlooks are in line with those of RZD, whose ratings and Outlook are aligned with the sovereign. Transcontainer is the leading rail-based container transportation company in Russia, transporting 1.3 million TEUs (twenty foot equivalent units) in 2007. As of H108, it owned 23,255 flatcars, 53,912 containers and a large network of 47 container terminals in key strategic locations throughout Russia. In addition to its core rail-based container transportation services and rail-side terminal services, it provides freight forwarding and logistics and truck deliveries. Transcontainer is 85%-owned by RZD, the second-largest railway transportation system in the world after the US. URAL-STROY-KOMPLEKS LLC: Creditors Must File Claims by March 2 -------------------------------------------------------------- Creditors of LLC Ural-Stroy-Kompleks (TIN 7453155816) (Construction) have until March 2, 2009, to submit proofs of claims to: B. Minigulov Temporary Insolvency Manager Apt. 130 Menedeleyeva St. 138 450022 Ufa Bashkortostan Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A76� 24619/2008�48-203. The Debtor can be reached at: LLC Ural-Stroy-Kompleks Prospect Lenina 83 Chelyabinsk Russia URALSVYAZINFORM OAO: Fitch Affirms Long-Term IDR at 'B+' -------------------------------------------------------- Fitch Ratings has affirmed OAO Uralsvyazinform's Long-term Issuer Default rating at 'B+', National Long-term rating at 'A-(A minus) (rus)' and Short-term IDR at 'B'. The National senior unsecured rating for its domestic bonds is affirmed at 'A-(A minus)(rus)'. The Outlooks on the Long-term IDR and National Long-term rating are Stable. Ural's ratings are supported by the incumbent's dominant market position in key sectors of operation, its backbone and fixed 'last mile' infrastructure (the widest in the operating territory) as well as by the existing benign regulatory environment in Russia. Fitch views Ural's financial performance as stable and healthy. EBITDA margin on a last 12-months basis to H108 is estimated at 34.4%, which is likely to be sustained over the medium term on the back of local voice tariff indexation, positive broadband and mobile contribution and staff cost control. Broadband and mobile segments are likely to be the main growth drivers for Ural over the medium term. The ratings are constrained by considerable refinancing risk, with short-term debt representing about 42% of Ural's total debt at end-H108. Cash and untapped credit facilities at FYE08 do not fully cover refinancing risks in Q109, mainly driven by a RUB3 billion domestic bond put option in March 2009. Fitch estimates an expected improvement in Ural's free cash flow generation, driven by a 50% capex deferral in 2009, will help provide on average RUB1.5 billion cash per quarter for debt repayment, which is likely to mitigate refinancing risks. The ratings take into consideration the fact that Ural's main shareholder, OAO Svyazinvest, has been included on the list of enterprises eligible for potential state support during the economic crisis. Being ultimately owned by the state and representing key incumbents in the telecommunications industry in Russia, Svyazinvest stands a better chance to receive government support than privately-held entities. Fitch believes Svyazinvest's refinancing negotiations with state-controlled banks in 2008-2009 for the whole group are likely to benefit Ural. As a result of debt reduction Ural's leverage is expected to decline from 2x at FYE07 to 1.7x at FYE08 and 1.2x at FYE09, which is low for the current rating. Fitch views the low leverage as an additional positive in the current tight credit environment as it should increase Ural's chances in securing bank funding. VTOR-CHER-MET SE: Court Names Insolvency Manager ------------------------------------------------ The Arbitration Court of Moscow appointed V. Kadzharduzov as Insolvency Manager for SE Vtor-Cher-Met (TIN 5031007213) (Scrap- processing). The case is docketed under Case No. A41�9553/08. He can be reached at: Building 1 Lubyanskiy proezd 5 101000 Moscow Russia The Debtor can be reached at: SE Vtor-Cher-Met Betonnaya St. 3a Noginsk 142410 Moskovskaya Russia WEST SIBERIAN: S&P Affirms S-T Counterparty Credit Rating at 'C' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term counterparty credit rating on Russia-based West Siberian Commercial Bank to 'B-' from 'B' and its Russia national scale rating to 'ruBBB-' from 'ruBBB+'. The 'C' short-term counterparty credit rating was affirmed. The outlook is negative. The ratings were removed from CreditWatch with developing implications, where they had been placed on Oct. 15, 2008, after the announcement that a controlling stake in the bank was to be acquired by two regional governments, the Tyumen Oblast (not rated) and Yamal-Nenets Autonomous Okrug (BB+/Stable/--; Russia national scale 'ruAA+'). However, the deal did not materialize. "The downgrade reflects the rapid deterioration of the bank's operating environment, which has put pressure on its capitalization, financial performance, and loan quality," said Standard & Poor's credit analyst Victor Nikolskiy. "Other negative rating factors include the bank's high single-name concentrations in deposits and its weak funding profile." These negative factors are partly offset by WSCB's good business profile in the Tyumen Oblast, adequate reserving, and significant funding support from the oblast, the Yamal-Nenets Autonomous Okrug, and the Central Bank of Russia. The ratings reflect the bank's stand-alone credit quality and do not include any uplift for extraordinary external support, either from shareholders or the government. WSCB is a midsize regional bank, ranking 50th among domestic banks. The bank's capitalization is weak and declining. The bank's financial results suffered heavily in 2008, due to the drop in market value of its equity portfolio. The negative outlook reflects the difficult operating environment in which the bank operates and the adverse impact it is expected to have on the bank's asset quality and financial performance. "We would likely lower the ratings if the deterioration of asset quality proves to be higher than expected or if liquidity or capitalization weakens significantly," said Mr. Nikolskiy. The outlook could be revised to stable if the bank maintains sufficient liquidity and if loan quality and financial performance prove to be more resilient than expected. * Fitch Takes Rating Actions on Four Russian Securitizations ------------------------------------------------------------ Fitch Ratings has taken various rating actions on four Russian securitizations. The actions were triggered by the agency's downgrade of Russia's sovereign rating to 'BBB' from 'BBB+'. A total of 11 ratings out of 12 were affirmed while one tranche was downgraded. The rating Outlooks on two tranches were revised to Negative from Stable, increasing the number of ratings with a Negative Outlook to eight from six. The rating actions are driven by the downgrade of Russia's sovereign rating and the Negative Outlook which has been maintained on the sovereign rating. Fitch notes that the performance of all rated deals is in line with the agency's expectations despite the ongoing deterioration of economic conditions in the country. However, Fitch warns that the risk that losses in the portfolios will increase has risen significantly as a result of the very negative macroeconomic environment. The devaluation of the rouble against the US dollar, in which most securitized loans are denominated, is a key risk at this stage. This risk however is mitigated by the high degree of amortization of most transactions leading to the availability of meaningful credit protection. As such the downgrade of the sovereign has had a relatively muted effect on the securitizations' ratings. Fitch will publish a detailed rationale explaining the rating changes for each transaction in coming days. Fitch will also host a teleconference on Monday, February 9 at 2:00 p.m. GMT to discuss the rating actions. Dial in details will follow in a separate announcement. A summary of the rating actions follows: ROOF Russia S.A. (ROOF) -- Class A: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Class B: affirmed at 'BB+'; Outlook Negative -- Class C: affirmed at 'BB-' (BB minus); Outlook Negative -- Class D: affirmed at 'B-' (B minus); Outlook Negative Russian Mortgage Backed Securities 2006-1 S.A. -- Class A: affirmed at 'A-' (A minus); Outlook revised to Negative from Stable -- Class B: affirmed at 'BBB'; Outlook Stable -- Class C: affirmed at 'BB-' (BB minus); Outlook Stable Moscow Stars B.V. -- Class A: affirmed at 'BBB'; Outlook Negative -- Class B: affirmed at 'BB'; Outlook Stable Red & Black Prime Russia MBS No. 1 Ltd. -- Class A: downgraded to 'A-' (A minus) from 'A'; Outlook Negative -- Class B: affirmed at 'BBB+'; Outlook revised to Negative from Stable -- Class C: affirmed at 'BB+'; Outlook Stable ========= S P A I N ========= SERIE AYT: Moody's Cuts Rating on Class D Notes to 'B3' ------------------------------------------------------- Moody's Investors Service has taken this rating action on the Notes issued by Serie AyT Colaterales Global Hipotecario Caja Espa�a I, issued within AyT Colaterales Global Hipotecario, FTA: - Class A, Downgraded to Aa1; previously on 19 December 2007 Assigned Aaa; on 23 July 2008 Placed Under Review for Possible Downgrade; - Class B, Downgraded to A3; previously on 19 December 2007 Assigned A2; on 23 July 2008 Placed Under Review for Possible Downgrade; - Class C, Downgraded to Ba2; previously on 19 December 2007 Assigned Baa3; on 23 July 2008 Placed Under Review for Possible Downgrade and - Class D, Downgraded to B3; previously on 19 December 2007 Assigned Ba2; on 23 July 2008 Placed Under Review for Possible Downgrade. - Previous rating action date: 23 July 2008. As explained in the press release issued on July 2008 in relation to the methodology update, the refinements to Moody's Spanish MILAN model result in higher credit enhancement levels for Spanish RMBS pools, especially those with riskier features, such as higher loan-to-value ratios and higher-risk products. Caja Espa�a I was one of the transactions flagged by Moody's as having such features. All Classes of Notes were placed on review for possible downgrade on July 23, 2008. The actions conclude a detailed review of the transaction. Caja Espa�a I closed in December 2007. In this transaction, the originator (Caja Espa�a de Inversiones, A3/P-2) securitised a portfolio of 3,282 first ranking mortgage loans secured on residential properties located in Spain, for an overall amount of EUR500 million. The collateral consists of loans with a loan-to- value over 80%. These high LTV loans represented 99.32% of the outstanding pool balance as of November 2008 reporting date. The transaction includes an interest rate swap to hedge interest rate risk in the transaction, securing reference interest rate on the notes plus 1.20% excess spread over a notional equal to the outstanding balance of loans less than 90 days in arrears. Caja Espa�a de Inversiones acted as swap counterparty. On November 11, 2008, Moody's Investors Service downgraded Caja Espa�a de Inversiones to A3/P-2/C-, Outlook: negative, from A2/P-1/C). Following this downgrade and pursuant to the swap agreements, Caja Espa�a chose to take remedial action by replacing itself by CECA (Aa2/P-1). Currently, the portfolio is showing worse-than-expected collateral performance leading to above market average delinquencies. After 11 months since closing, corresponding to November 2008 reporting date, the 90+ days delinquencies corresponded to approximately 4.20% of the current pool balance. The transaction includes artificial write-off of loans (1) more than 18 months delinquent or (2) for which there are no expectations of them becoming current. This typical Spanish RMBS mechanism speeds up the off-balance sheet treatment of a non- performing loan compared to waiting for the "natural write-off"; thus, the amount of notes collateralized by non-performing loans and, consequently, the negative carry, is minimised. As of November 2008 no artificial write-offs had been reported. Moody's has assessed updated loan-by-loan information of the outstanding portfolio to determine the increase in credit support needed and the volatility of future losses. As a result, Moody's has raised its Milan Aaa CE from a range of 17.70%-18.10% to 23.50% and the portfolio's expected loss assumption from a range of 2.20%-2.40% to 3.30% (as a percentage of original pool balance). These changed assumptions reflect the performance but also Moody's expectation for this transaction in the context of a weakening macro-economic environment in Spain. All collections Caja Espa�a de Inversiones receives are transferred on a daily basis to the treasury account of the fund held by the Paying Agent. Moody's has taken into account in its analysis the limited commingling risk this transaction is exposed to. On November 4, 2008, the Spanish Government announced a package of aid to assist unemployed, self-employed and pensioner borrowers through a form of mortgage subsidy aid. It is unclear how this package will be implemented, and also if it is implemented, 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 are approved. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes (May 2047). 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 yield to investors. SANTANDER EMPRESAS: Fitch Cuts Rating on Class F Tranche to 'C' --------------------------------------------------------------- Fitch Ratings has taken various rating actions on Fondo de Titulizacion de Activos Santander Empresas 4 and Fondo de Titulizacion de Activos Santander Empresas 3. The rating actions were prompted by an increase in the amount of delinquent loans in the transactions and concerns about Spain's macroeconomic environment. In total, nine tranches were downgraded and six tranches were affirmed while 10 tranches were assigned Negative rating Outlooks and two tranches had their Negative Outlooks maintained. The rating actions, the transactions' main portfolio parameters and rating action rationales are: Fondo de Titulizacion de Activos Santander Empresas 4 -- Class A1 (ISIN ES0337944005) affirmed at 'AAA'; assigned a Negative Outlook -- Class A2 (ISIN ES0337944013) affirmed at 'AAA'; assigned a Negative Outlook -- Class A3 (ISIN ES0337944021) affirmed at 'AAA'; assigned a Negative Outlook -- Class B (ISIN ES0337944039) downgraded to 'A' from 'AA-'(AA minus); assigned a Negative Outlook -- Class C (ISIN ES0337944047) downgraded to 'BBB' from 'A'; assigned a Negative Outlook -- Class D (ISIN ES0337944054) downgraded to 'B' from 'BBB'; Negative Outlook maintained -- Class E (ISIN ES0337944062) downgraded to 'CCC' from 'BB-' (BB minus) -- Class F (ISIN ES0337944070) downgraded to 'C' from 'CC' As of October 20, 2008, 90+ day delinquencies stood at 1.8% of the current portfolio. The portfolio is highly concentrated in real estate and related sectors with the current exposure at 39.9%. The transaction is also exposed to borrower concentration with the largest borrower accounting for 1.5% of the portfolio and the top five borrowers totalling EUR159 million or 6%. The transaction closed in 2007 and has not benefited from de-leveraging to the same degree as older vintage transactions. The current portfolio is 74.7% of initial portfolio balance, which has led to a small increase in credit enhancement on the notes. The reserve fund of EUR46m provides 1.7% of credit enhancement. Fitch's analysis of the delinquency pipeline and an updated default forecast for the current portion of the portfolio indicated that the credit protection for classes B, C, D, E and F was no longer adequate to support the prior ratings. As such, these classes have been downgraded and assigned Negative Outlooks, or had a Negative Outlook maintained. The Negative Outlooks assigned to classes A1, A2 and A3 reflect the transaction's exposure to the delinquency pipeline and Fitch's expectation of significant further credit deterioration over the next two years due to Spain's economic downturn and the ongoing correction in the real estate and construction sectors. Fondo de Titulizacion de Activos Santander Empresas 3 -- Class A2 (ISIN ES0337710018) affirmed at 'AAA'; assigned a Negative Outlook -- Class A3 (ISIN ES0337710026) affirmed at 'AAA'; assigned a Negative Outlook -- Class B (ISIN ES0337710034) affirmed at 'AA'; assigned a Negative Outlook -- Class C (ISIN ES0337710042) downgraded to 'A' from 'A+'; assigned a Negative Outlook -- Class D (ISIN ES0337710059) downgraded to 'BB' from 'BBB+'; assigned a Negative Outlook -- Class E (ISIN ES0337710067) downgraded to 'B' from 'BB+'; Negative Outlook maintained -- Class F (ISIN ES0337710075) downgraded to 'C' from 'CCC' As of October 16, 2008, 90+ day delinquencies stood at 1.8% of the current portfolio. The portfolio is concentrated in real estate and related sectors with the current exposure at 26.1%. The transaction is also exposed to borrower concentration with the largest borrower accounting for 2% of the portfolio and the top five borrowers totalling EUR121 million or 5.7%. The transaction closed in 2007 and has not benefited from de-leveraging to the same degree as older vintage transactions. The current portfolio is 61.3% of initial portfolio balance, which has led to a small increase in credit enhancement on the notes. The reserve fund of EUR45.5 million provides 2.1% of credit enhancement. Fitch's analysis of the delinquency pipeline and an updated default forecast for the current portion of the portfolio indicated that the credit protection for classes C, D, E and F was no longer adequate to support the prior ratings. As such, these classes have been downgraded and assigned Negative Outlooks, or had a Negative Outlook maintained. The Negative Outlooks assigned to classes A2, A3 and B reflect the transaction's exposure to the delinquency pipeline and Fitch's expectation of significant further credit deterioration over the next two years due to Spain's economic downturn and the ongoing correction in the real estate and construction sectors. Fitch assigned Negative rating Outlooks between May and September 2008 to 19 tranches issued by Spanish small- and medium-sized enterprise collateralized debt obligation transactions due to a combination of declining performance trends and the worsening Spanish macroeconomic environment. In a report published on May 8, 2008, entitled "Rating Outlooks in Spanish SME CDOs", Fitch discussed why the agency had a negative view for the next one-to- two years and highlighted macroeconomic trends and concerns which, the agency believes, increase the downgrade risk for such notes over the long term. Since then, Spanish macroeconomic conditions have deteriorated further and there has been a notable increase in delinquencies across SME CDO transactions. Fitch expects further deterioration to occur due to the economic downturn and ongoing correction in the real estate and related sectors, which is expected to accelerate over the near-term. However, many originators have begun to reinforce collections efforts by adding staff and employing more proactive collection strategies. Given Fitch's expectation of further credit deterioration in the SME segment, the agency continues to review rated transactions to ensure the credit protection in place is sufficient to maintain existing ratings. In the analysis undertaken, assumptions on probability of default (PD) and loss severity were made with regards to current delinquencies as well as the performing portfolio. With respect to default probability, the base assumption on the current portion of the portfolio was revised upward to reflect the non-investment grade nature of underlying borrowers and to consider how the portfolio or loans could perform through-the cycle. This resulted in an increase in the base default probability to approximately 10-15%, which was then adjusted to reflect the remaining weighted average life of the portfolio. The base case PD was further adjusted to account for the existing portfolio delinquency pipeline, with loans in later state delinquency buckets assigned progressively higher default probabilities (up to 100% for loans greater than six months in arrears). On the recovery side, Fitch assumed the 'BB' recovery from the initial rating analysis. These updated PD and recovery assumptions were used to determine an updated loss expectation and then compared against existing subordination available for each tranche, with minimum coverage ratios of the updated expected loss driving the actions noted above. Seasoning, excess spread, as well as industry and borrower concentration risk also factored into Fitch's credit view. These two transactions under the Santander Empresas programme are cash flow securitizations of static pools of loans granted by Banco Santander ('AA'/Rating Watch Negative/'F1+') to Spanish SMEs, self-employed borrowers and larger companies. The respective issuers are legally represented and managed by Santander de Titulizacion S.G.F.T., S.A. (the Sociedad Gestora), a limited liability company incorporated under the laws of Spain, whose activities are limited to the management of securitization funds. =========== S W E D E N =========== FORD MOTOR: Mulls Job and Supplier Cuts, In Talks on Volvo Sale --------------------------------------------------------------- Dan Strumpf at The Associated Press reports Ford Motor Co will continue to slash the number of suppliers it does business with as it adapts to the weak auto market. Citing Tony Brown, Ford's group vice president for global purchasing, the AP relates the company had about 1,600 auto parts suppliers eligible for new business at the end of 2008, and is aiming to bring that number down to about 750. The AP notes in 2004, Ford was doing business with 3,300 parts suppliers. Data obtained by the AP from the Original Equipment Suppliers Association showed 40 auto parts makers went bankrupt in 2008. Mr. Brown, according to the AP, expects more failures among parts suppliers as the industry grapples with an unprecedented downturn in automobile sales. "We are going to see more, and we are going to see more faster," of the pace of parts supplier insolvencies, Mr. Brown said as cited by the AP. Volvo Sale Ford is in talks to sell its Sweden-based Volvo Car unit to China's Geely Automobile Holdings Ltd., Bloomberg News reports citing three people familiar with the discussions. Two of the people told Bloomberg News that Geely first approached Ford about buying Volvo a year ago, before the U.S. automaker had decided to sell its Swedish auto unit. Preliminary talks began in December after Ford said it would consider selling the unit, according to Bloomberg News. Ford, which is trying to avoid government aid by raising cash through asset sale, probably will get less than the US$6.4 billion it paid for Volvo in 1999, Bloomberg News cited one of the people as saying. Geely, Bloomberg News' sources said, would likely seek to buy Ford's entire equity stake in Volvo rather than negotiate with the Swedish unit over purchases of specific assets. According to Bloomberg News, Ford creditors are likely to receive some, or even all, of the proceeds from any sale of Volvo, which it pledged as part of the collateral it put up for US$23 billion in loans it secured in 2006. Sale of Volvo, whose U.S. sales fell 64 percent last year and had a pretax loss of US$736 million in the fourth quarter, will follow Ford's sale of Jaguar and Land Rover to India's Tata Motors Ltd. for US$2.4 billion last June and its Aston Martin luxury line for US$931 million to a group of investors in May of 2007. U.K. Job Cuts Bloomberg News reports Ford will cut as many as 850 jobs in the U.K. and delay the introduction of a new version of its best- selling Transit van. Ford has offered "voluntary separation" packages to salaried and hourly workers as part of a plan to eliminate the positions by May and is also seeking to renegotiate a wage increase offered to U.K. workers last year, Bloomberg News says citing the automaker in a statement. Bloomberg News relates automakers and suppliers are shuttering plants across Europe as car markets shrink. Car sales in Britain fell 31 percent in January to 112,087 vehicles from 162,097 a year earlier, the ninth consecutive monthly decline, the news agency cited the London-based Society of Motor Manufacturers & Traders as saying. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. ===================== S W I T Z E R L A N D ===================== ARTHUR BONDERER: Creditors Must File Proofs of Claim by Feb. 16 --------------------------------------------------------------- Creditors owed money by JSC Arthur Bonderer are requested to file their proofs of claim by Feb. 16, 2009, to: JSC Prefera Audit Grossfeldstrasse 40 7320 Sargans Switzerland The company is currently undergoing liquidation in Pfafers SG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 22, 2008. CASA NOVA: Deadline to File Proofs of Claim Set February 16 ----------------------------------------------------------- Creditors owed money by LLC Casa Nova Service are requested to file their proofs of claim by Feb. 16, 2009, to: Odilo Casanova Rebgasse 5 Mail Box 9625 8036 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 12, 2008. GENERAL MOTORS: To Start Talks on Debt Restructuring Today ---------------------------------------------------------- General Motors Corp. executives, advisers, bondholders and union officials scheduled talks today and tomorrow to negotiate the government-ordered debt restructuring of the automaker, Bloomberg News reports citing two people close to the plans. Bloomberg News' sources, who asked not to be named because the meetings are private, said the discussions follow previous informal talks as part of GM's plan to reduce US$27.5 billion in unsecured debt to about US$9.2 billion by swapping for equity. The report relates GM has a Feb. 17 deadline to submit a status report to the U.S. Treasury as part of an agreement to keep US$13.4 billion in loans. According to the report, GM must outline its plan for long-term viability, competitiveness and energy efficiency. Specifically, Bloomberg News says the plan must: -- demonstrate how the automaker will repay the loans, restructure its business and ensure a positive value for the company in the future; and -- show monthly detail through 2010 and annual projected financial results through 2014. By March 31, the report notes GM must have union approval for any contract changes as well as an agreement to cut the costs of the union retiree health-care fund. The automaker must also have begun the debt exchange offer with bondholders, the report adds. Job Cuts GM may cut salaried jobs similar in magnitude to more than 5,000 eliminated last year, people familiar with the plan told Bloomberg News. According to Bloomberg News, GM is offering retirement incentives to most of its 62,000 members of the United Auto Workers union that include US$20,000 cash and a US$25,000 voucher for a new car for workers willing to retire or quit. GM would like to get more than 10,000 union workers to leave and is expecting at least half that many to accept, one person was cited by Bloomberg News as saying. Workers have until March 24 to decide, the report says. China Joint Venture Irene Shen at Bloomberg News reports General Motors Corp. may form a commercial-vehicle venture with China FAW Group Corp. Both companies have already registered a name for the venture, GM spokesman Henry Wong told Bloomberg News in a phone interview without elaborating. The report relates GM makes vehicles in China through two ventures, both of which are backed by SAIC Motor Corp. According to the report, sales at SAIC-GM-Wuling, a minivan venture, rose 20 percent to a record 75,168 units last month, while GM's U.S. sales in the same period plunged 49 percent. China's vehicle sales may gain this year as sales of cars, trucks and buses increased 6.7 percent last year to 9.38 million, the report notes citing the China Association of Automobile Manufacturers. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GRAFICOREKLAMEN LLC: Creditors Have Until Feb. 15 to File Claims ---------------------------------------------------------------- Creditors owed money by LLC Graficoreklamen are requested to file their proofs of claim by Feb. 15, 2009, to: Yves Kurfurst Erlenstrasse 97 8645 Jona Switzerland The company is currently undergoing liquidation in Sevelen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 15, 2008. HEAVY GRAPHICS: Proof of Claim Filing Deadline Set February 16 -------------------------------------------------------------- Creditors owed money by LLC Heavy Graphics are requested to file their proofs of claim by Feb. 16, 2009, to: W. Schwehr Zurcherstrasse 1 8142 Uitikon Waldegg Switzerland The company is currently undergoing liquidation in Uitikon Waldegg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 25, 2008. HG CHEMIE: Creditors' Proofs of Claim Due by February 15 -------------------------------------------------------- Creditors owed money by JSC HG Chemie Thun are requested to file their proofs of claim by Feb. 15, 2009, to: Streun Marco Liquidator Stoeckliweg 15 3604 Thun Switzerland The company is currently undergoing liquidation in Thun. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 29, 2008. HG CREAKTIV: February 18 Set as Deadline to File Claims ------------------------------------------------------- Creditors owed money by LLC HG Creaktiv are requested to file their proofs of claim by Feb. 18, 2009, to: Oskar Schneider-Berger Im Gyseneggli 8784 Braunwald Switzerland The company is currently undergoing liquidation in Braunwald. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 10, 2008. KOCH LEDER: Creditors Must File Proofs of Claim by February 16 -------------------------------------------------------------- Creditors owed money by LLC Koch Leder are requested to file their proofs of claim by Feb. 16, 2009, to: Gschwend 9108 Gonten Switzerland The company is currently undergoing liquidation in Gonten AI. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 29, 2008. RUHR-PETROL JSC: Deadline to File Proofs of Claim Set Feb. 15 ------------------------------------------------------------- Creditors owed money by JSC Ruhr-Petrol are requested to file their proofs of claim by Feb. 15, 2009, to: Urs J. Hausheer Liquidator Advocacy and Notary's Office 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. ZBINDEN ARCHITEKTEN: Creditors Have Until Feb. 16 to File Claims ---------------------------------------------------------------- Creditors owed money by LLC Zbinden Architekten are requested to file their proofs of claim by Feb. 16, 2009, to: Birkenweg 2 3423 Ersigen Switzerland The company is currently undergoing liquidation in Ersigen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 2, 2008. ZIELPUNKT JSC: Proof of Claim Filing Deadline Set February 16 ------------------------------------------------------------- Creditors owed money by JSC Zielpunkt are requested to file their proofs of claim by Feb. 16, 2009, to: Markus Knecht Liquidator Widdergasse 1 Mail Box: 2903 8021 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 2, 2008. ============= U K R A I N E ============= AYRIS LTD: Creditors Must File Claims by February 21 ---------------------------------------------------- Creditors of LLC Ayris Ltd. (EDRPOU 32208224) have until Feb. 21, 2009, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 29, 2008. The case is docketed as 50/330. The Debtor can be reached at: LLC Ayris Ltd. Apt. 54 Yanvarskogo Vosstaniya St. 11A Kiev Ukraine COALTRUST LLC: Creditors Must File Claims by February 21 -------------------------------------------------------- Creditors of LLC Coal Producer Coaltrust (EDRPOU 33772148) have until Feb. 21, 2009, to submit proofs of claim to: Mr. Sergey Sizov Temporary Insolvency Manager Apt. 48 Krasnoflotskaya St. 100-a 83052 Donetsk Ukraine Tel: 8(050)776-77-22 The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 17, 2008. The case is docketed as 5/162B. The Economic Court of Donetsk Artema St. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Coal Producer Coaltrust Kirov St. 9 Shakhtersk 86200 Donetsk Ukraine DNIEPROEL LLC: Creditors Must File Claims by February 21 -------------------------------------------------------- Creditors of LLC Dnieproel (EDRPOU 33690317) have until Feb. 21, 2009, to submit proofs of claim to: Mr. S. Ilnitsky Temporary insolvency manager Ukraine Tel: 8(067)295-9203 The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 15, 2009. The case is docketed as 44/22-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Dnieproel Surikov St. 3 03035 Kiev Ukraine LAN LLC: Creditors Must File Claims by February 21 -------------------------------------------------- Creditors of LLC Lan (EDRPOU 30824004) have until Feb. 21, 2009, to submit proofs of claim to: Mr. Dmitriy Popovich Liquidator Korytnoe Vizhnick Chernovcy Ukraine The Arbitration Court of Chernovcy commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 22, 2008. The case is docketed as 9/14/B. The Economic Court of Chernovcy O. Kobylianska St. 14 58000 Chernovcy Ukraine The Debtor can be reached at: LLC Lan Lunka Hertsayevsky Chernovcy Ukraine LOGOS LLC: Creditors Must File Claims by February 21 ---------------------------------------------------- Creditors of LLC Logos (EDRPOU 23514575) have until Feb. 21, 2009, to submit proofs of claim to: Mr. Aleksey Doroshenko Temporary Insolvency Manager P.O.B. 286 01001 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 26, 2008. The case is docketed as 50/318. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Logos Pravda Avenue, 62 04108 Kiev Ukraine MEGAKHIM LLC: Creditors Must File Claims by February 21 ------------------------------------------------------- Creditors of LLC Megakhim (EDRPOU 32946299) have until Feb. 21, 2009, to submit proofs of claim to: Mrs. Inessa Tchernokondratenko Temporary Insolvency Manager Office 12 Boyko St. 13 Kremenchuk, V 39602 Poltava Ukraine The Arbitration Court of Poltava commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 23, 2008. The case is docketed as 23/95. The Economic Court of Poltava Zigin St. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Megakhim 40 Years of October St. 2/7 Kremenchuk 39617 Poltava Ukraine PROJECT BUILDING: Creditors Must File Claims by February 21 ----------------------------------------------------------- Creditors of LLC New Technical Project Building (EDRPOU 33863004) have until Feb. 21, 2009, to submit proofs of claim to: Mr. Andrew Nadlonok Liquidator Zubrovskaya St. 25a/33 79066 Lvov Ukraine The Arbitration Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 25, 2008. The Economic Court of Lvov Lichakivska St. 128 79010 Lvov Ukraine The Debtor can be reached at: LLC New Technical Project Building Kolomiya St. 6/47, 7 Lvov Ukraine SMILA FOOD: Creditors Must File Claims by February 21 ----------------------------------------------------- Creditors of CJSC Smila Food Company (EDRPOU 00380698) have until Feb. 21, 2009, to submit proofs of claim to: Mr. Alexander Yuditsky Liquidator / Insolvency Manager Apt. 9 Khimikov Avenue, 60 18018 Cherkassy Ukraine The Arbitration Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 25, 2008. The case is docketed as 10/5386. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: CJSC Smila Food Company Papanin St. 55 Smila 20700 Cherkassy Ukraine STATE SAVINGS: Fitch Downgrades Individual Rating to 'E' from 'D' ---------------------------------------------------------------- Fitch Ratings has downgraded JSC State Savings Bank of Ukraine's (Oschadbank) Individual rating to 'E' from 'D'. At the same time, the agency has affirmed the bank's other ratings, including its Long-term foreign currency Issuer Default rating of 'B+' with a Negative Outlook. The downgrade of Oschadbank's Individual rating reflects its increased dependence on government financial support, given the high loan exposure to state-owned Naftogaz (rated 'B'; Rating Watch Negative) it took on at end-2008. The downgrade also factors in risks stemming from recent rapid asset growth, the deteriorating operating environment, negative asset quality trends and weak corporate governance (as reflected in the government- directed lending to Naftogaz). Loans to Naftogaz comprised a very high 53% of Oschadbank's portfolio (equal to around 120% of bank's equity) at end-2008, and in Fitch's view the company might have difficulties repaying those obligations in time from its own cash flow without any form of state support. Aside of the Naftogaz exposure, corporate impairment reported in the IFRS accounts has been significant (H108: 7.8%), although some of these loans were performing, Fitch understands. The latest regulatory data show some deterioration in asset quality, although overall reported impairment is fairly moderate to date (the two lowest loan categories comprised 3.4% of gross loans at end-2008 compared to 2.9% at end-H108). Foreign currency lending is small (8% of loans at end-2008) compared to Ukrainian peers, which is a significant relative credit-positive in light of the recent sharp depreciation of the UAH. The composition of the bank's liabilities changed significantly in the last days of 2008, and funding now largely consists of funds from the National Bank of Ukraine (NBU, 52% of liabilities at end- 2008), which were used to finance loans to Naftogaz. Retail accounts are the second-largest source of funding (32%), and have proven to be relatively stable, reflecting the depth of the bank's franchise and the state guarantee on deposits with the bank. During Q408, deposit outflow (net of FX effects) was approximately 4%, which is lower than at other Fitch-rated peers. Liquidity management is rather basic, although the liquidity position of the bank is adequate at present, supported by the historical stability of individuals' accounts. At end-2008, available liquidity (cash and equivalents as well as unpledged government securities) covered 38% of customer deposits. Liquidity could come under pressure should there be repayment delays of Naftogaz loans coupled with unwillingness on the part of NBU to extend the maturity of its loans. According to existing legislation, however, Oschadbank has a right to sell government bonds to NBU at par, mitigating any maturity mismatch between repo facilities with NBU and Naftogaz loans. The capital position was supported in 2008 by UAH12.9bn of equity injections by the state, largely with the aim of financing loans to Naftogaz. Fitch notes that this new equity was contributed in the form of long-dated (due in 2015-2016), low-rate (9.5%) government securities; however, concerns about the quality of capital are at least partially alleviated by the legal right of Oschadbank to sell those securities to the NBU at their face value. The regulatory total capital adequacy ratio at end-2008 was 35.7%. While the bank's capital position is severely compromised by its exposure to Naftogaz, Fitch notes that non- Naftogaz loans are now equal to only around 100% of the bank's equity. This means if the latter are repaid without significant losses or capital distribution, capitalization should be solid. The Long-term IDR continues to be driven by the likelihood of support from the Ukrainian government (rated 'B+'/Negative Outlook), which directly owns 100% of the bank. Fitch's view of potential support also takes into account the bank's strong share in distributing pension and other social payments via the largest branch network in the country, as well as its use as a state agent in extending loans to Naftogaz. The Negative Outlook reflects that on the sovereign's IDR. A downgrade of Ukraine's ratings would result in a downgrade for Oschadbank. If Oschadbank books significant losses on its loans to Naftogaz, resulting in a need to further recapitalize the bank, then the Individual rating could be downgraded to 'F'. If, however, these loans are repaid without significant losses, no further directed lending is made, capital remains within the bank and asset quality remains reasonable, then the Individual rating could be upgraded. Oschadbank was the eighth-largest Ukrainian bank by assets at end- Q308. It is the successor of the Ukrainian branch of the former Soviet Union savings bank and has the largest branch network in the country with over 6,000 outlets and over 39,000 employees. The Cabinet of Ministers of Ukraine holds 100% of the bank's shares. Rating Actions: -- Long-term foreign currency IDR: affirmed at 'B+' with Negative Outlook -- Long-term local currency IDR: affirmed at 'B+' with Negative Outlook; -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: downgraded to 'E' from 'D' -- Support rating: affirmed at '4' -- Support Rating Floor: affirmed at 'B+' -- National Long-term rating: affirmed at 'AA(ukr)' with Stable Outlook =========================== U N I T E D K I N G D O M =========================== ASTON ZORASTER: Appoints Joint Liquidators from Tenon Recovery -------------------------------------------------------------- Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of Aston Zoraster Ltd. on Jan. 27, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England INTERFRAME LTD: Calls in Joint Liquidators from Deloitte -------------------------------------------------------- William Kenneth Dawson and Richard Michael Hawes of Deloitte LLP were appointed joint liquidators of Interframe Ltd. on Jan. 23, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Deloitte LLP at: PO Box 500 2 Hardman Street Manchester M60 2AT England MERCIA TIMBER: Taps Joint Liquidators from Tenon Recovery --------------------------------------------------------- Colin Nicholls and Andrew Appleyard of Tenon Recovery were appointed joint liquidators of Mercia Timber Products Ltd. on Jan. 15, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: Mercia Timber Products Ltd. Unit 8 Portersfield Road Cradley Heath West Midlands B64 7BN England OILEXCO INC: Obtains Court Order for CCAA Creditor Protection ------------------------------------------------------------- Oilexco Incorporated obtained a court order Thursday for protection under the Companies' Creditors Arrangement Act (Canada). Ernst & Young Inc. was appointed monitor under the order. The order permits Oilexco (including its wholly-owned Alberta subsidiary Oilexco Technical Services Inc.) to remain in possession and control of its property, carry on its business, retain employees and other service providers and restructure its operations. Proceedings by creditors and others cannot be commenced without leave of the court and current proceedings are stayed. The order does not affect rights of The Royal Bank of Scotland plc and other lenders to shares of Oilexco's wholly-owned United Kingdom subsidiary Oilexco North Sea Limited ("ONSL"). Those shares were pledged by Oilexco as security for Oilexco's obligations as guarantor of amounts owed by ONSL under the US US$547.5 million senior and super senior credit facility and GBP100 million pre-development credit facility of ONSL with the lenders. About Oilexco Inc. Headquartered in Calgary, Canada, Oilexco Inc. (TSX: OIL; LSE: OIL) -- http://www.oilexco.com/-- is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea Ltd., a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL". RAPIER ENGINEERING: Appoints Joint Liquidators from Tenon --------------------------------------------------------- Christopher Ratten and Jeremy Woodside of Tenon Recovery were appointed joint liquidators of Rapier Engineering Ltd. on Jan. 23, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Arkwright House Parsonage Gardens Manchester M3 2LF England TATA STEEL UK: S&P Cuts Long-Term Corp. Credit Rating to 'B+' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on India-based steelmaker Tata Steel Ltd. to 'BB-' from 'BB' and that of its wholly owned subsidiary, Tata Steel U.K. Ltd., to 'B+' from 'BB-'. The outlook for both ratings is negative. Standard & Poor's also affirmed the 'B' short-term rating on TSUK. At the same time, Standard & Poor's lowered its rating on Tata Steel's senior unsecured bank loans to 'BB-' from 'BB'. The issue rating on TSUK's GBP3.67 billion senior secured debt was also lowered to 'BB', from 'BB+', and placed on CreditWatch with negative implications, pending a review of S&P's recovery analysis to consider how the weakened demand environment may affect recovery prospects. "The rating downgrades reflect the weak global market conditions for steel products given the significant slowdown in the auto and construction industries," said Standard & Poor's credit analyst Yasmin Wirjawan. The two companies have also been adversely affected by the worsening global economic conditions and the resultant sharp downturn in commodities, she said. Although Tata Steel has taken steps such as production and job cuts, asset restructuring, and efficiency improvement, Standard & Poor's expects Tata Steel's credit metrics and cash flows to be materially affected by the current downturn. "And with Tata Steel's credit metrics and cash flows affected, in S&P's opinion, its ability to support TSUK has reduced," Ms. Wirjawan said. "TSUK's financial metrics are also going to be adversely affected, and its financial covenants pressured in the second half of this year." Tata Steel has two key markets -- the U.K. and India. TSUK, the holding company for its European operations, has aggressively cut production by 30%-40% because of declining demand. TSUK accounted for approximately 70% of Tata Steel's total steel production capacity as of March 31, 2008, and about half of its EBITDA in the fiscal year ended March 2008. THOMAS SHAW: Appoints Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Thomas Dixon and Christopher Benjamin Barrett of Tenon Recovery were appointed joint liquidators of Thomas Shaw Engineering Ltd. on Jan. 21, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Clive House Clive Street Bolton Lancashire BL1 1ET England WHITE LIGHTNING: Taps Liquidator from Tenon Recovery ---------------------------------------------------- Duncan R. Beat of Tenon Recovery was appointed liquidator of White Lightning Ltd. on Jan. 21, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: 75 Springfield Road Chelmsford Essex CM2 6JB England WOODCOTE BUILDING: Appoints Joint Liquidators from PKF ------------------------------------------------------ Edward Terence Kerr and Ian James Gould of PKF (UK) LLP were appointed joint liquidators of Woodcote Building Services Holdings Ltd. on Jan. 16, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through PKF (UK) LLP at: Regent House Clinton Avenue Nottingham NG5 1AZ England WRIGHT GROUP: In Administration; PwC Appointed ---------------------------------------------- The Wright Group has gone into administration, thisishullandeastriding.co.uk reports. The report relates according to officials, the move is a result of cash flow issues caused by problems in the UK property market and the difficulties in raising development finance. Mark Loftus, Ian Green and Rob Birchall of PricewaterhouseCoopers LLP have been appointed joint administrators, the report discloses. According to the report, most of the company's 38 employees have been redundant. Based in Hull, The Wright Group, which comprises Wright Group (Holdings) Limited, Wright (Hull) Limited and T. Wright & Son Limited, specialized in exclusive, stylish developments across the Yorkshire region. ZAVVI: Another 17 Stores Closed; 242 Jobs Affected -------------------------------------------------- Julia Finch at guardian.co.uk reports that Ernst & Young, Zavvi's administrator, has closed another 17 of the music chain's stores, resulting to the loss of 242 jobs. The report discloses the stores closed Thursday were in: Aberdeen, Blackpool, Camberley (Atrium), Carlisle, Chester, Coventry, Denton, Derby (Albion Street), Harlow, Hemel Hempstead, Hereford, Loughborough, Sheffield (Meadowhall), Shrewsbury, Swindon, Walton- on-Thames and York. "We will continue to trade the remaining stores and remain hopeful that a sale of some or all of these can be achieved. We are in detailed discussions with two interested parties and it is our intention to continue to trade all remaining UK stores with a view to their sale as a going concern," the report quoted Tom Jack, joint administrator at Ernst & Young, as saying. On December 24, 2008, Tom Jack, Simon Allport and Alan Hudson of Ernst & Young LLP were appointed joint administrators of zavvi UK. On the same date Tom Jack and Andrew Dann of Ernst & Young LLP were appointed as liquidators of zavvi Online (Guernsey) Ltd. On January 13, 2009 Tom Jack, Simon Allport and Alan Hudson of Ernst & Young LLP were appointed joint administrators of zavvi Entertainment Group Ltd. The zavvi Group is the UK's largest independent entertainment retailer trading from 125 stores across the UK (114) and Ireland (11) currently employing 2,363 permanent staff and 1,052 temporary staff. The group was formed from a management buy out (MBO) of the Virgin Megastore division of the Virgin Group in September 2007. On November 27, 2008 Entertainment UK Ltd, the group's main supplier, went into administration. Since this time the group has been unable to source stock in the usual way and has been forced to enter into new trading arrangements. The directors understand it is unlikely that EUK will be sold as a going concern and the zavvi Group has continued to experience significant difficulty in obtaining stock on favorable credit terms. This has resulted in considerable working capital difficulties as a result of the failure of EUK, in addition to continuing operating losses. * UK: KPMG Says Corporate Insolvencies to Rise in 2009 ------------------------------------------------------ KPMG Restructuring predicts that corporate insolvencies (administrations and receiverships) will rise dramatically in 2009 reaching 5,000 by the end of the year. This compares to 3,225 insolvency appointments in 2008 (to December 23) and 2,230 in 2007: a 45 per cent increase in appointments from 2007 to 2008, according to KPMG's figures. Jim Tucker, of KPMG Restructuring and one of KPMG's leading large- scale insolvency practitioners said: "The downturn is now firmly entrenched in the real economy and there are hardly any sectors that have not been hit. Confidence is a key driver behind consumers' and business' willingness to spend money, and right now confidence is at a low ebb. A number of companies and their stakeholders are trying hard to restructure their businesses, but given the speed of the downturn it is inevitable that some will run out of cash." Chris Laverty, also a partner in KPMG Restructuring's large-scale insolvency team, commented on the impact of insolvencies on the high street: "Retail insolvency appointments to the end of January 2009 are up 300 per cent, compared with the same period in 2008, proving the vastly different trading landscape for retailers. "With consumer confidence in decline, the soaring cost of imported goods or withdrawal of credit insurance and the overall lack of credit to bridge retailers to the next key trading period of Easter, means we would expect the tally of insolvencies on the High Street to continue to climb." In addition, Dow Jones Insight analyzed media sources for five organizational triggers for KPMG Restructuring which included debt restructurings, profit warnings, covenant breaches, cash flow warnings and organizational triggers (such as redundancy announcements or surprise resignations of chief personnel) for the second half of 2008, and found a: * 79 per cent increase in debt restructurings (rising from 1,244 in Q3 to 2,036 in Q4); * 64 per cent increase in cash flow warnings (from Q3 to Q4 in 2008). Jim Tucker, KPMG Restructuring Partner said: "The increase in announced debt restructurings is only the visible tip of the covenant breach iceberg. As we go through 2009 we expect a very significant number of companies to be forced to renegotiate or restructure their facilities; we're not expecting that process to be quick or easy. Those companies that delay approaching their creditors are at grave risk of failure. "The most common cause of business collapse is simply running out of cash. Waiting until cash becomes the critical issue is a sure- fire way of destroying the confidence of lenders. Yet cash flow warnings remain a significant trigger for companies this year across sectors. Looking ahead, we believe the sectors with the most to lose in the months to come include travel and leisure, chemicals and industrials, including automotive, energy and natural resources." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * Scottish Corporate Insolvencies Reach 228 in Third Qtr. 2008/09 ----------------------------------------------------------------- The Accountant in Bankruptcy published statistics showing company liquidations and receiverships in Scotland in the third quarter of 2008/09. The Accountant in Bankruptcy received 228 notices of Scottish companies entering liquidation or receivership in the third quarter of 2008/09. This figure includes 8 receiverships, 166 compulsory liquidations and 54 creditors' voluntary liquidations. * BOND PRICING: For the Week Feb. 2 to Feb. 6, 2009 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- BELGIUM ------- Barry Calle SVCS 6.000 07/13/17 EUR 74.02 CYPRUS ------ Abh Financial Lt 8.200 06/25/12 USD 69.12 Alfa MTN Invest 9.250 06/24/13 USD 71.81 FRANCE ------ Alcatel SA 4.750 01/01/11 EUR 13.01 6.380 04/07/14 EUR 64.20 Bouygues 5.500 10/06/26 GBP 75.27 BNP Paribas 0.250 12/20/14 USD 70.42 Calyon 6.000 06/18/47 EUR 33.15 Cap Gemini SA 2.500 01/01/10 EUR 50.29 1.000 01/01/12 EUR 40.96 Soc Air France 2.750 04/01/20 EUR 18.47 Wavecom SA 1.750 01/01/14 EUR 30.75 GREECE ------ Antenna TV SA 7.250 02/15/15 EUR 52.50 HUNGARY ------- Agrokor 7.000 11/23/11 EUR 70.37 IRELAND ------- Allied Irish Bks 5.250 03/10/25 GBP 69.74 5.630 11/29/30 GBP 66.02 Alfa Bank 8.630 12/09/15 USD 58.88 8.640 02/22/17 USD 50.88 Ardagh Glass 7.130 06/15/17 EUR 71.13 Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Bank of Ireland 4.630 02/27/19 EUR 75.99 Bank Soyuz 9.380 02/16/10 USD 64.96 ITALY ----- Banca Italease 3.000 06/30/11 EUR 63.63 3.000 09/30/11 EUR 61.38 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 62.18 Ak Bars Bank 9.250 06/20/11 USD 72.77 Alrosa Finance 8.880 11/17/14 USD 70.63 Bank of Moscow 7.340 05/13/13 USD 71.69 7.500 11/25/15 USD 49.98 6.810 05/10/17 USD 44.68 Beverage Pack 8.000 12/15/16 EUR 70.75 9.500 06/15/17 EUR 43.88 Breeze 4.520 04/19/27 EUR 45.89 Globus Capital 8.500 03/05/12 USD 49.42 NETHERLANDS ----------- Aegon NV 6.130 12/15/31 GBP 69.47 Air Berlin Finance BV 1.500 04/11/27 EUR 36.19 Alfa Bk Ukraine 9.750 12/22/09 USD 101.76 AL Finance BV 9.000 11/22/10 USD 59.92 ALB Finance BV 9.750 02/14/11 GBP 40.44 8.750 04/20/11 USD 44.87 7.880 02/01/12 EUR 39.87 9.250 09/25/13 USD 47.37 ASM International NV 4.250 12/06/11 USD 70.25 ASML Holding NV 5.750 06/13/17 EUR 65.34 Astana Finance 7.880 06/08/10 EUR 58.38 9.000 11/16/11 USD 100.43 ATF Capital BV 9.250 02/21/14 USD 62.17 BK Ned Gemeenten 0.500 06/27/18 CAD 69.04 0.500 02/24/25 CAD 47.58 Centercrdt Intl 8.000 02/02/11 USD 55.90 8.630 01/30/14 USD 41.62 Hit Finance BV 4.880 10/27/21 EUR 71.45 JSC Bank Georgia 9.000 02/08/12 USD 41.13 Turanalem Fin BV 7.130 12/21/09 GBP 71.63 7.880 06/02/10 USD 57.10 6.250 09/27/11 EUR 42.34 7.750 04/25/13 USD 44.52 8.000 03/24/14 USD 42.20 8.500 02/10/15 USD 46.16 8.250 01/22/37 USD 45.70 ROMANIA ------- Bucharest 4.130 06/22/15 EUR 52.10 SPAIN ----- Abertis 5.990 05/14/38 EUR 73.63 Abertis Infra 4.380 03/30/20 EUR 75.97 Auvisa 4.790 12/15/27 EUR 65.63 Ayt Cedulas Caja 3.750 06/30/25 EUR 75.26 Bancaja 4.380 02/14/17 EUR 71.67 UNITED KINGDOM -------------- Alfa-Bank CJSC 9.250 07/26/10 USD 101.66 Amlin Plc 6.500 12/19/26 GBP 63.31 Anglian Water Finance Plc 2.400 04/20/35 GBP 44.61 Annes Gate Pppty 5.660 06/30/31 GBP 73.41 Ashtead Holdings 8.630 08/01/15 USD 59.13 Aspire Defence 4.670 03/31/40 GBP 60.49 Aviva Plc 5.250 10/02/23 EUR 60.58 5.75 11/14/21 EUR 66.24 6.880 05/22/38 EUR 52.38 6.880 05/20/58 GBP 71.73 Bank of India 6.630 09/22/21 USD 73.27 Barcklays Bk Plc 9.750 09/30/09 GBP 68.69 Beazley Group 7.250 10/17/26 GBP 70.34 Bradford&Bin Bld 7.630 02/16/10 GBP 75.25 5.500 01/15/18 GBP 19.94 5.750 12/12/22 GBP 24.87 6.630 06/16/23 GBP 22.86 4.910 02/01/47 EUR 66.45 BL Super Finance 4.480 10/04/25 GBP 72.00 Britannia Bldg 5.750 12/02/24 GBP 67.93 5.880 03/28/33 GBP 61.02 British Airways Plc 8.750 08/23/16 GBP 84.94 British Land Co 5.010 09/24/35 GBP 71.22 5.260 09/24/35 GBP 66.16 Brit Sky Broadca 6.000 05/21/27 GBP 74.42 British Tel Plc 5.750 12/07/28 GBP 70.66 6.380 06/23/37 GBP 73.63 Brixton Plc 5.250 10/21/15 GBP 69.48 6.000 09/30/19 GBP 57.98 Broadgate Finance Plc 4.850 04/05/31 GBP 71.09 5.000 10/05/31 GBP 65.85 5.100 04/05/33 GBP 57.86 4.820 07/05/33 GBP 68.89 Cattles Plc 7.880 01/17/14 GBP 18.75 8.130 07/05/17 GBP 19.13 CGNU Plc 6.130 11/16/26 GBP 64.39 Heating Finance 7.880 03/31/14 GBP 59.63 ********* 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 * * *