/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090225.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, February 25, 2009, Vol. 10, No. 39 Headlines A U S T R I A DUROTON POLYMERBETON: Claims Registration Period Ends March 11 KOBU LLC: Claims Registration Period Ends March 11 MAU LLC: Claims Registration Period Ends March 11 TATSCHL-GLANZ LLC: Claims Registration Period Ends March 11 F R A N C E AREVA SA: Needs Cash, May Seek Government's Help, WSJ Says PERNOD RICARD: Fitch Affirms L-T Issuer Default Rating at 'BB+' G E R M A N Y AVD CONSULTING: Claims Registration Period Ends March 23 CONTINENTAL AG: Moody's Cuts Corporate Family Rating to 'Ba2' DAIMLER AG: Results Negatively Impacted by Chrysler, DBRS Says ERRSA ENERGIETECHNIK: Claims Registration Period Ends March 23 GENERAL MOTORS: German Unit Needs More Than EUR3.3 Bln in Aid GENERAL MOTORS: Viability Plan No Immediate Impact on DBRS Rating IL MERCATO: Claims Registration Period Ends March 10 PLATZHAUS FACILITY: Claims Registration Period Ends March 18 Q-PLUS MARKETING: Claims Registration Period Ends March 16 QIMONDA NA: Files for Chapter 11 Bankruptcy Protection QIMONDA NA: Case Summary & 30 Largest Unsecured Creditors QIMONDA NA: To Separate from Richmond Unit; To Sell QR Plant * GERMANY: Approves EUR50 Billion Economic Stimulus Plan G R E E C E COMMERCIAL VALUE: Fitch Holds 'B+' Financial Strength Rating H U N G A R Y HUNGARIAN TELEPHONE: Obtains Waiver Under Senior Credit Facilities I R E L A N D GOLDEN DISC: High Court Appoints Examiner THOMAS READ: High Court Orders Liquidation of Four Companies I T A L Y FIAT SPA: Moody's Downgrades Long-Term Ratings to 'Ba1' K A Z A K H S T A N ASTANA OIL: Creditors Must File Claims by April 3 DIKA MANAGEMENT: Creditors Must File Claims by April 3 EURO ASIA: Creditors Must File Claims by April 3 G KART TELECOM: Creditors Must File Claims by April 3 GLOBAL SECURITIES: Creditors Must File Claims by April 3 KAZAKH MORTGAGE: Fitch Affirms Ratings on Class C Notes at 'BB' KVARTS JSC: Creditors Must File Claims by April 3 RUDNY SOKOLOV: Creditors Must File Claims by April 3 UJ STROY SNUB: Creditors Must File Claims by April 3 UVELIR PROM: Creditors Must File Claims by April 3 K Y R G Y Z S T A N SKY LIGHT: Creditors Must File Claims by March 10 R O M A N I A * ROMANIA: New Insolvency Cases to Reach 20,000 in 2009 R U S S I A BUKET-STROY LLC: Creditors Must File Claims by March 15 CHELYABINSKIY AUTOMATIVE: Under Bankruptcy Procedure KAMA TIMBER LLC: Creditors Must File Claims by March 15 MOSCOW STARS: Fitch Affirms Rating on Class B Notes at 'BB' OMSK PAPER: Creditors Must File Claims by March 15 REM-STROY-TSENTR LLC: Creditors Must File Claims by April 14 SAYAN-EXPORT LLC: Creditors Must File Claims by March 15 URENSKIY PREPRODUCTION: Creditors Must File Claims by March 15 WOOD-PROCESSING PLANT: Creditors Must File Claims by March 15 ZMEINOGORSKIY DISTILLERY: Bankruptcy Hearing Set March 3 ZOLOTO SUTAMA: Court Names Temporary Insolvency Manager S P A I N BANCAJA 12: S&P Downgrades Rating on Class D Notes to 'BB-' CEMEX ESPANA: Fitch Senior Unsecured Debt Obligations to 'BB' CONSUMER SPAIN: Fitch Cuts Rating on Class E Notes to 'CC' EMPRESAS BANESTO: S&P Cuts Ratings on Class D Notes to 'BB-' PYME VALENCIA: Moody's Reviews 'Ba3' Rating on EUR13.6 Mil. Notes PYMES BANESTO: Fitch Downgrades Rating on Class C Tranche to 'B' PYMES BANESTO: S&P Downgrades Ratings Class C Notes to 'BB' S W E D E N CONCORDIA BUS: S&P Puts 'B-' Rating on Developing CreditWatch GENERAL MOTORS: Rating Not Affected By Saab Filing, DBRS Says GENERAL MOTORS: Saab Obtains Creditor Protection in Sweden S W I T Z E R L A N D ALPINA IT-SOLUTIONS: Creditors Must File Claims by Feb. 28 ATIU JSC: Deadline to File Proofs of Claim Set Feb. 27 BACHER & SIEGER: Creditors Have Until Feb. 27 to File Claims FUNCTION BRANDS: Proof of Claim Filing Deadline is Feb. 27 KRYMIA JSC: Creditors' Proofs of Claim Due by Feb. 28 LUSEDA LLC: Feb. 27 Set as Deadline to File Claims PQM SERVICES: Creditors Must File Proofs of Claim by Feb. 27 SETAC LLC: Deadline to File Proofs of Claim Set Feb. 28 TRANSLAND JSC: Creditors Have Until Feb. 28 to File Claims ZWAHLEN ABDICHTUNGEN: Proof of Claim Filing Deadline is Feb. 28 U K R A I N E CENTER PROJECT: Creditors Must File Claims by March 7 EKSIMPRO LLC: Creditors Must File Claims by March 7 ENERGYHOLDING K LLC: Creditors Must File Claims by March 7 ENERKOS LLC: Creditors Must File Claims by March 7 LAND-PLUS LLC: Creditors Must File Claims by March 7 LIM-UKRAINE LLC: Creditors Must File Claims by March 7 PRESTIGE-GLOBAL-PLUS LLC: Creditors Must File Claims by March 7 RUSSIA LLC: Court Starts Bankruptcy Supervision Procedure STABILNOST LLC: Creditors Must File Claims by March 7 TREVIKS LLC: Creditors Must File Claims by March 7 * UKRAINE: Banks Refusing Credit to Farmers Get No Refinancing U N I T E D K I N G D O M B J MALE: Appoints Joint Administrators from Grant Thornton CASTLE HOLDCO 4: Completes Balance Sheet Restructuring Review CHRISTOPHER RODGERS: Put Into Administration; 30 Jobs Affected ENERGY BATTERIES: Names Joint Administrators from KPMG H20 LIFESTYLE: Brings In Joint Liquidators from Tenon Recovery LIQUID PORCELAIN: Appoints Joint Liquidators from Tenon Recovery MCCARTHY & STONE: Reaches Debt-For-Equity Swap Deal With Banks ROYAL BANK: To Split Company Based on GBP1 Bln Cost Cutting Plan SPOONER VICARS: Taps Joint Liquidators from Tenon Recovery TATA MOTORS: Jaguar Land Rover Workers to Vote on Pay Freeze THREE WAY: Appoints Joint Liquidators from Tenon Recovery VALE ST HUBERT: Taps Joint Administrators from PKF * Moody's Downgrades Ratings on 169 Notes by Certain CDO Deals * EUROPE: Economist Warns "More Severe" Banking Problem * EUROPE: World Bank Sees Deteriorating EU10 Economy in 2009 ********* =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D A U S T R I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D DUROTON POLYMERBETON: Claims Registration Period Ends March 11 -------------------------------------------------------------- Creditors owed money by LLC Duroton Polymerbeton (FN 200437k) have until March 11, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ulla Reisch Praterstrasse 62-64 1020 Wien Austria Tel: 01/212 55 00 Fax: 01/212 55 00 5 E-mail: office.wien@ulsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on March 25, 2009, for the examination of claims at: Land Court of Korneuburg (119) Room 204 Korneuburg Austria Headquartered in Leopoldsdorf bei Wien, Austria, the Debtor declared bankruptcy on Jan. 21, 2009, (Bankr. Case No. 36 S 16/09h). KOBU LLC: Claims Registration Period Ends March 11 -------------------------------------------------- Creditors owed money by LLC Kobu (FN 266282t) have until March 11, 2009, to file written proofs of claim to the court-appointed estate administrator: Stefan Jahns Gonzagagasse 15 1010 Wien Austria Tel: 532 17 11 Fax: 532 17 11-11 E-mail: kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:15 a.m. on March 25, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 16, 2009, (Bankr. Case No. 3 S 8/09k). MAU LLC: Claims Registration Period Ends March 11 ------------------------------------------------- Creditors owed money by LLC Mau (FN 97800z) have until March 11, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Georg Kahlig Siebensterngasse 42/3 1070 Wien Austria Tel: 523 47 91-0 Fax: 523 47 91-33 E-mail: kahlig.partner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on March 25, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 16, 2009, (Bankr. Case No. 3 S 9/09g). TATSCHL-GLANZ LLC: Claims Registration Period Ends March 11 ----------------------------------------------------------- Creditors owed money by LLC Tatschl-Glanz (FN 265160t) have until March 11, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Helmut Fetz Hauptplatz 11 8700 Leoben Austria Tel: 03842-42751 Fax: 03842-42751-40 E-mail: office@fetz-fetz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on March 25, 2009, for the examination of claims at: Land Court of Leoben (609) Hall IV First Floor Austria Headquartered in Langenwang, Austria, the Debtor declared bankruptcy on Jan. 15, 2009, (Bankr. Case No. 17 S 1/09d). =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D F R A N C E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D AREVA SA: Needs Cash, May Seek Government's Help, WSJ Says ---------------------------------------------------------- France's Areva SA is scrambling for cash and may seek direct state aid to finance immediate needs. David Gauthier-Villars of The Wall Street Journal reports that when Areva reports earnings today, Wednesday, executives are expected to urge the French government to act quickly to help fill a gap of as much as EUR3 billion, or about US$4 billion, in Areva's 2009 investment budget. According to the Journal, the company requires roughly EUR10 billion over the next four years to finance investments in uranium mines, nuclear-fuel production plants and heavy-parts manufacturing. Areva also needs EUR2 billion by 2012 to buy back shares in its nuclear-reactor unit after minority shareholder Siemens AG pulled out, and may also have to pay a hefty penalty because of delays in building a nuclear reactor in Finland, the Journal relates. The news agency discloses Areva posted a net profit of EUR760 billion on revenue of EUR6.17 billion in the first half of last year, however, the company consumes more cash than it generates from operations. The company, whose credit rating was placed under negative watch by Standard & Poor's last month, obtained a EUR4.5 billion loan last summer, according to the news agency. The Journal reports the French government, Areva's majority owner, is looking at a number of options, including allowing Areva to dispose of noncore assets to free up cash or merging the company with French heavy-engineering company Alstom SA. An Areva union said Friday that layoffs may be necessary if something isn't done soon, the report relates. Meanwhile, the Journal says Areva is inviting partners to share investment costs to meet immediate financing needs. Areva executives, as cited by the Journal, said the French company is in advanced talks to sell a 2.5% stake in a EUR3 billion uranium- enrichment plant under construction in southern France to Japan's Kansai Electric Power Co. Areva has already sold a 5% interest in the facility to French energy utility GDF Suez SA, the Journal notes. About Areva SA France-based Areva SA (EPA:CEI) --- http://www.areva.com/--- offers technological solutions for nuclear power generation and electricity transmission and distribution. The Company operates four divisions, including Front-End, which combines all of the fuel cycle operations that take place before nuclear power is generated; Reactors & Services, which designs and builds pressurized water reactors (PWR) and boiling water reactors (BWR), as well as naval propulsion and research and test reactors; Back- End, which covers operations for the treatment and recycling of fuel after it has been used in nuclear power plants and related operations, and Transmission & Distribution, which manufactures, installs and maintains electricity transmission and distribution equipment and systems. AREVA SA holds stakes in a number of companies, such as STMicroelectronics NV, Eramet, Safran, Suez and REpower. The Company is listed on the Euronext Paris Stock Exchange. PERNOD RICARD: Fitch Affirms L-T Issuer Default Rating at 'BB+' --------------------------------------------------------------- Fitch Ratings has affirmed French wine and spirit maker Pernod Ricard SA's Long-term Issuer Default Rating and senior unsecured rating at 'BB+' respectively. The Short-term IDR has been affirmed at 'B'. The Long-term IDR's Outlook remains Negative. "In affirming Pernod's 'BB+' rating, Fitch has reflected the company's strengthened position as the number two player in the international spirits industry and its ability, in a deteriorating consumer environment, to defend sales volumes due to a broad product offering across different pricing points," said Giulio Lombardi, Senior Director in Fitch's European Retail, Leisure and Consumer Products Group. "The rating action also factors in Pernod's flexibility to protect cash generation by reducing capex and working capital absorption, and its ability to protect profit margins by taking advantage of the current reduction in advertising prices whilst continuing to support its brands." An additional factor underpinning the affirmation of Pernod's ratings is that management has reinforced its commitment to deleverage and achieve an investment grade rating through the announcement in October 2008 of a EUR1 billion asset disposal program. Currently the company targets Net Debt/EBITDA of 4.5-5.0x by FYE10 and approximately 4.0.x by FY11. Execution risks from management's disposal plans are mitigated by the diversification of this process across several small, and therefore potentially more saleable, assets. However, the Negative Outlook reflects the risk of delays in reducing a high leverage of over 6x (on an annualized basis) for FY08 (to June 2008), which is not compatible with the current 'BB+' rating. Gross debt has virtually doubled from FYE07's EUR6 billion as a result of the acquisition of Vin & Sprit, the maker of Absolut Vodka, for EUR5.6bn cash in July 2008. While weaker general consumer spending should not cause a material decline in global consumption of international spirits, Fitch expects rates of growth for Pernod's sales and profits to be sharply reduced over FY09, FY10 and possibly FY11, as the beneficial trend of growing demand for premium and above-premium products enjoyed in recent years should now be followed by one of substitution of consumption for lower-priced premium and value alternatives. The ratings continue to reflect Pernod's strong business profile in the global spirits industry, with geographically diverse operations and a product portfolio that includes strong brands in the major international categories of consumption, as well as its successful integration of the Allied Domecq operations acquired in FY06. Finally, Pernod's success in gaining control over the US and international distribution of Absolut Vodka shortly after the completion of the acquisition, with a fairly low cash disbursement, is beneficial for the prospects of this important brand within the Pernod stable of products. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D G E R M A N Y =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D AVD CONSULTING: Claims Registration Period Ends March 23 -------------------------------------------------------- Creditors of AVD Consulting Verwaltungs 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 10:00 a.m. on April 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Tostedt Meeting Room I Area CE.02 Linden 23 21255 Tostedt 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: Gregor Schoene Haferweg 22 D 22769 Hamburg Germany Tel: 040 / 89 71 86-0 Fax: 040 / 89 71 86-11 The District Court opened bankruptcy proceedings against the company on Feb. 10, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AVD Consulting Verwaltungs GmbH Tischlerstr. 5 21244 Buchholz Germany Attn: Dennis Henkis, Manager Marienburger Str. 11 23879 Moelln Germany CONTINENTAL AG: Moody's Cuts Corporate Family Rating to 'Ba2' ------------------------------------------------------------- Moody's Investors Service has downgraded Continental AG's corporate family rating to Ba2 from Ba1. The outlook on the ratings remains negative. Falk Frey, Senior Vice President and lead analyst at Moody's for Continental AG ("Conti"), commented: "The rating action reflects the anticipation of a more severe downturn in global automotive markets than was anticipated by the agency at the end of last year. Moody's is of the opinion that this bleaker environment will in all likelihood not allow Conti to remain in line with the credit metrics required for the former Ba1 rating category". Mr. Frey went on: "The negative outlook reflects that the economic conditions could still worsen which could affect Conti's operating conditions at a time when the company still needs to generate cash flow to deleverage". The need to address the upcoming refinancing debt maturity of EUR3.5 billion due in August 2010 from the VDO acquisition debt also continues to weigh on the rating outlook. While Conti's Q4/2008 operating results still held up relatively well, Moody's believes that the current slump in world-wide automotive production volumes could affect earnings markedly in 2009. As a result Moody's see a substantial risk that 2009 leverage ratios could fall below levels incorporated into the previous Ba1 rating (e.g. Debt/EBITDA < 4x or RCF/Net Debt > 15%). At the same time, Moody's would expect the company's large non-OE business (app. 30% of revenues) to be more resilient and allow for overall positive operating results in 2009 despite adverse market conditions. Moreover, Moody's would expect Conti to still achieve Free Cash Flow around break-even levels in the current year on the back of lower capital expenditures, reduced dividends and a tight working capital management. In the current environment Moody's also considers positively the strong track record of the company in adapting operations to market changes and conducting restructuring plans. The 12 months liquidity of Conti remains good though Moody's continues to caution that Conti faces a substantial refinancing risk of EUR3.5 billion by August 2010 from the VDO acquisition financing. In this context Moody's views positively that Conti and its lenders agreed on a relaxation of financial covenants under the VDO acquisition financing arrangements in January 2009. However, in Moody's view this headroom could tighten again over 2009 depending on the overall development of automotive markets. Moody's further notes that the current rating reflects the view that there is only a limited risk that the situation at Conti's major shareholder Schaeffler - which appears to have overstretched its financial flexibility with the acquisition of Conti shares - could adversely affect the position of Conti's creditors to the extent that the financing arrangements remain independent with a solid set of bank covenants protecting the Conti lenders. Any concerns around that basic assumption would question the current positioning of the rating and the rating agency will therefore closely monitor the developments at Schaeffler. Downgrades: Issuer: Continental AG -- Probability of Default Rating, Downgraded to Ba2 from Ba1 -- Corporate Family Rating, Downgraded to Ba2 from Ba1 -- Senior Unsecured Medium-Term Note Program, Downgraded to a range of Ba2, LGD4, 50% from a range of Ba1, LGD3, 49% Issuer: Continental Rubber of America Corporation -- Senior Unsecured Medium-Term Note Program, Downgraded to Ba2 from Ba1 -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of Ba2, LGD4, 50% from a range of Ba1, LGD3, 49% Moody's last rating action on Conti was a downgrade to Ba1 (negative outlook) from Baa3 (ratings under review for possible downgrade) on December 18, 2008. Headquartered in Hannover, Germany, Continental AG is one of the top automotive suppliers worldwide in the areas chassis and safety technology, interior and infotainment and powertrain as well as the world's fourth-largest manufacturer of passenger and commercial vehicle tires. In 2008 Conti generated consolidated sales of EUR24 billion. DAIMLER AG: Results Negatively Impacted by Chrysler, DBRS Says -------------------------------------------------------------- DBRS notes that on Tuesday, February 17, Daimler AG announced its fourth-quarter and full-year 2008 results. The results for both periods are significantly lower on a year-over-year basis. DBRS notes that this decline was not unexpected and reflects very weak conditions across most major markets in the Company's Mercedes- Benz Cars (MBC) and Daimler Trucks (DT) divisions. Additionally, the results also incorporate significant negative impacts associated with Chrysler LLC (Chrysler); (Daimler continues to hold a 19.9% equity stake in Chrysler). Despite the weaker operating results, the Company's financial risk profile remains acceptable for the current A (low) long-term ratings. The Company recorded earnings before interest and tax (EBIT) of EUR2.7 billion for 2008, down sharply from the EUR8.7 billion in EBIT generated in 2007. For the fourth quarter alone, Daimler incurred a loss of EUR1.95 billion, relative to EUR1.39 billion in EBIT posted in the fourth quarter of 2007. MBC, Daimler's primary segment, incurred a loss of EUR359 million in the fourth quarter as the global automotive markets underwent a severe downturn that was particularly accentuated in the second half of the year. DT, the Company's other major business division, was able to generate EUR86 million in EBIT in the fourth quarter, but this again was sharply lower than the EUR512 million generated one year prior. In addition, free cash flow was highly negative at EUR3.9 billion; DBRS notes that is in large part attributable to high working capital absorption, given much-reduced activity in response to the market downturn. Exacerbating the above are losses associated with Chrysler. For FY2008, Chrysler's negative impact on EBIT totaled EUR3.2 billion, of which EUR1.4 billion was attributable to the negative at-equity results of Chrysler, with a further EUR1.8 billion in impairments taken on Chrysler-related assets. (DBRS notes that Daimler continues to be in negotiations with Cerberus Capital Management regarding its remaining stake in Chrysler.) DBRS notes that weak market conditions are expected to prevail in 2009 and will continue to pressure earnings over the near term. However, Daimler does remain well positioned to withstand the downturn. The Company's industrial operations continue to have a significant net cash position as of December 31, 2008. On a consolidated basis (including the financial services segment), the Company continues to enjoy access to well-diversified funding sources, notwithstanding challenging credit market conditions. Daimler maintains a US$5 billion multi-currency revolver that expires in 2011. Furthermore, in October 2008, the Company also obtained a new EUR3 billion multi-currency revolver. DBRS also notes that the Company has effectively addressed its 2009 capital market obligations through three recent Eurobond issues totalling EUR3.6 billion. Daimler is also undertaking several measures to conserve cash over the near to medium term. In October 2008, the Company's share repurchase activities (which used a significant amount of cash) were suspended indefinitely. Future capital expenditures and budgets will also be subject to rigid review to help ensure a more disciplined approach to spending cash. As such, DBRS is of the opinion that Daimler's strong liquidity position should remain sufficient to avoid any negative rating actions in the near term. However, should the protracted market declines continue unabated and result in cash burn that is higher than DBRS's expectations, then negative rating implications would likely result. ERRSA ENERGIETECHNIK: Claims Registration Period Ends March 23 -------------------------------------------------------------- Creditors of ERRSA Energietechnik 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 9:00 a.m. on May 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rainer M. Bahr Obergraben 10 01097 Dresden Germany Web site: www.hermann-law.de The District Court opened bankruptcy proceedings against the company on Feb. 13, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ERRSA Energietechnik GmbH Attn: Alexander Huwaldt, Manager Dittelsdorfer Str. 2 02763 Zittau Germany GENERAL MOTORS: German Unit Needs More Than EUR3.3 Bln in Aid ------------------------------------------------------------- General Motors Corp's Germany-based unit, Adam Opel GmbH, needs a lifeline of more than EUR3.3 billion (US$4.23 billion), Bloomberg News reports citing Opel supervisory-board member Armin Schild. Opel has already applied for EUR1.8 billion in state aid in Germany, but now estimates this should rise to EUR2.5 billion, a company source told Reuters Friday. German Chancellor Angela Merkel has said GM's Opel must present a clear plan before Berlin could consider state aid, Reuters relates. Opel risks falling into bankruptcy as early as May if no bank provides the carmaker with the necessary loans, the newspaper Bild Zeitung said in a Feb. 21 report obtained by Bloomberg News. The German unit is having difficulty seeking government funding as some officials doubt its long term profitability and the risk the funds will go directly to its parent. Meanwhile, the AFP reports Germany's foreign affairs minister, Frank-Walter Steinmeier, appealed for international help for Opel. "We have to look further than our own backyard. No car factory is capable of surviving alone in Germany or elsewhere," AFP quoted Minister Steinmeier as saying in a Rheinische Post report. According to Bloomberg News, Opel employs 50,000 people across Europe, about half of which is in Germany. In a separate report, Reuters, citing Mr. Schild, says German trade union IG Metall is pushing for a partial carve-out of Opel. A complete carve-out was neither necessary nor sensible, Mr. Schild, who represents IG Metall on Opel's supervisory board, told Reuters. Mr. Schild further told Reuters Opel management will present to the board on Friday a new plan for the company's business. Bloomberg News relates GM says it needs US$6 billion from foreign governments and must reach an agreement to shave US$1.2 billion from European labor costs by March 31. According to Bloomberg News, GM said Jan. 11 that, in addition to talks with Germany, it=92s also in touch with governments in Spain, where it employs more than 7,200 people, and the U.K., headquarters to Opel=92s Vauxhall brand, with a workforce of almost 5,000. GM has set March 31 for deciding on all its European divisions=92 future as the carmaker seeks as much as US$16.6 billion in new U.S. federal loans, Bloomberg News says. GM's Swedish unit, Saab Automobile, filed for creditor protection Friday last week after the parent said it will cut ties with the carmaker following two decades of losses, Bloomberg News reported. Saab Chief Executive Officer Jan Aake Jonsson said in a statement obtained by the Troubled Company Reporter that the Trollhaettan, Sweden-based company filed for reorganization with a Swedish district court to separate itself from GM and bring resources back to Sweden. About Adam Opel GmbH Adam Opel GmbH --- http://www.opel.com/--- a wholly-owned subsidiary of General Motors Corp for 80 years, is the core of GM's business in Europe. Opel's passenger cars (Astra, Zafira, Vectra, and electric Ampera), along with its light commercial vehicles (Combo and Movano) represent over 90% of GM's total sales in Germany. Opel is the third-most popular brand in Germany, behind Volkswagen and Mercedes-Benz. It offers International and Diplomat Sales (IDS) to customers in international organizations, the military, and in diplomatic service, also builds cars in Belgium, Poland, Portugal, and Britain. About SAAB AB Saab AB is a Sweden-based technology company active within the defense, aviation and space industries. It operates through three principal segments. Defense and Security Solutions develops and manufactures command, control and communication systems. Systems and Products produces and sells systems, products and components for defense, aviation, space and civil security internationally. Aeronautics comprises both military and civilian aeronautics operations, including the Gripen program, which uses technology to perform air-to-air and air-to-surface operational missions. The Company consists of such business units as Saab Aerotech, Saab Communication, Saab Grintek, Saab Systems, Combitech, Saab Surveillance Systems, Saab Avitronics, Saab Barracuda, Saab Bofors Dynamics, Saab Space, Saab Training Systems, Saab Microwave Systems, Saab Underwater Systems, Saab Aerosystems, Saab Aerostructures, Saab Aircraft Leasing and Gripen International. Saab AB is headquartered in Stockholm, Sweden. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Viability Plan No Immediate Impact on DBRS Rating ----------------------------------------------------------------- Dominion Bond Rating Service notes that General Motors Corporation submitted a revised Restructuring Plan to the United States Department of the Treasury. The Revised Plan has no immediate impact on GM's current ratings, with the Issuer Rating remaining at CC, with a Negative trend. DBRS continues to be of the opinion that the Company has just sufficient liquidity to maintain operations over the near term, with the Revised Plan seeking additional government funding relative to the US$18 billion initially requested under the Company's previous restructuring plan submitted on December 2, 2008. DBRS also notes that, absent additional funding, the Company's liquidity position could fall below minimally required levels in the near term. With respect to funding, the Revised Plan requests an additional US$4.5 billion to repay GM's secured debt that matures in 2011 (previously, the Company had assumed that this debt would be rolled over). Furthermore, citing global automotive conditions even more depressed than those stipulated only two months prior, GM has also outlined a new downside scenario where the U.S. seasonally adjusted annual rate (SAAR) in 2009 drops to 9.5 million units (from 10.5 million units). Under this revised downward scenario, the Company would seek an additional US$7.5 billion. As such, currently GM's total ask potentially amounts to US$30 billion; DBRS notes that thus far, US$13.4 billion in U.S. Troubled Assets Relief Program funding has been disbursed. GM further disclosed that it is also seeking additional support from various other governments, including Australia, Canada and Germany; such incremental funding could amount to as much as US$6 billion by 2010. Regarding GM's deliverables, the Company has outlined the progress it has made on several fronts. With respect to brand consolidation, GM has now specified that this would be completed by 2011, with four core brands remaining: Chevrolet, Cadillac, Buick and GMC. Pontiac would be positioned as a niche brand going forward, with HUMMER and Saab subject to either sale or reorganization in the very near future. Saturn is to remain open through the life cycle of its current product portfolio, assumed to end in 2011. Subsequently, absent a sale or spin-off, Saturn would be phased out. GM also further reduced its number of U.S. manufacturing plants by 2012 to 33 from 38; (DBRS notes that the targeted plants have yet to be identified). GM also indicated that it has reached a new agreement with the United Auto Workers (UAW) to further lower labour costs to a level that is competitive with the transplant automotive manufacturers; however, no specifics have been provided. Similarly, the Company stated that negotiations with its unsecured bondholders are progressing, with no further details being disclosed. Finally, GM revealed that while it has further investigated entering into formal bankruptcy proceedings, the Company remains of the opinion that its restructuring would be best achieved outside of such a process. However, DBRS notes that should the Revised Plan be ultimately approved by the U.S. government and result in additional funding, the Company's liquidity position would remain weak and not fundamentally changed. For the time being, previous rating actions related to GM sufficiently incorporate its current credit profile. However, the extremely volatile market conditions do not preclude further rating actions in the near term. IL MERCATO: Claims Registration Period Ends March 10 ---------------------------------------------------- Creditors of Il Mercato Italiano GmbH have until March 10, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on March 25, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Fourth Floor Muehlenstrasse 34 40213 Duesseldorf 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: Michael Bremen Sternstr. 58 40479 Duesseldorf Germany The District Court opened bankruptcy proceedings against the company on Feb. 12, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Il Mercato Italiano GmbH Oststr. 10 40211 Duesseldorf Germany Attn: Francesco Palmieri, Manager Boernestrasse 2 40211 Duesseldorf Germany PLATZHAUS FACILITY: Claims Registration Period Ends March 18 ------------------------------------------------------------ Creditors of Platzhaus facility GmbH have until March 18, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Mannheim Room 232 West Wing Schloss 68149 Mannheim 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. Alexander Hoepfner Feldbergstr. 45-47 68163 Mannheim Germany Tel: 0621/8109-740 The District Court opened bankruptcy proceedings against the company on Feb. 12, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Platzhaus facility GmbH Uwe Kraft, Manager Q 1, 14 68161 Mannheim Germany Q-PLUS MARKETING: Claims Registration Period Ends March 16 ---------------------------------------------------------- Creditors of Q-Plus Marketing and Vertriebsgesellschaft mbH 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 9:07 a.m. on April 16, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cologne Room 1216 Luxemburger Strasse 101 50939 Cologne Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sabine Feuerborn Else-Lang-Str. 1 50858 Cologne Germany The District Court opened bankruptcy proceedings against the company on Feb. 4, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Q-Plus Marketing and Vertriebsgesellschaft mbH Elisabeth-Treskow-Platz 6 50678 Cologne Germany Attn: Olaf Sperwer, Manager Carl-Spitz Weg 2 50999 Cologne Germany QIMONDA NA: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------ Court documents say that Qimonda Richmond, LLC, and its affiliate, Qimonda North America Corp., have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, saying that they will seek a buyer for their assets. Emily Chasan at Reuters reports said that Qimonda North America listed assets in excess of US$1 billion and liabilities in excess of US$1 billion. Qimonda Richmond said in court documents that prices for DRAM products dropped sharply in 2007 and further declined in 2008. According to Reuters, Qimonda Richmond had tried to diversify its products. Reuters states that the company shut down part of its Richmond plant in October 2008, laying off more than 1,000 employees. According to court documents, the Richmond facility shutdown earlier this month because Qimonda AG was no longer buying output from the plant and it had little access to cash and could no longer fund ongoing operations. Reuters relates that 500 workers were laid off this month, while about 500 would leave in the coming days. Qimonda Richmond said that by the end of April 2009 it will idle the plant and run it with a skeleton crew of up to 60 workers while it searches for a buyer, according to Reuters. Qimonda Richmond, the report states, said that it has US$10.3 million in cash and expects to generate more cash, which will be sufficient to fund its operations. The report says that Qimonda Richmond would consider bankruptcy financing if it could find terms that meet its needs. Reuters reports that Qimonda Richmond's two former workers filed sued the company on Friday, claiming that it may have failed to properly pay employee wages and benefits owed to them after a mass layoff on February 4. According to the Report, the lawsuit is seeking class action status. Sandston, Virginia-based Qimonda Richmond, LLC, and its affiliate, Qimonda North America Corp., make semiconductor products. The companies filed for Chapter 11 bankruptcy protection on February 20, 2009 (Bankr. D. Delaware Case No. 09-10589). Simpson Thacher & Bartlett LLP assists the companies in their restructuring effort. Mark D. Collins, Esq., and Michael Joseph Merchant, Esq., at Richards Layton & Finger PA are the co-counsel in the firms' bankruptcy case. Alvarez & Marsal is the companies' restructuring managers. Epiq Bankruptcy Solutions LLC is the companies' claims agent. The companies listed more than US$1 billion in assets and more than US$1 billion in liabilities. QIMONDA NA: Case Summary & 30 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Qimonda Richmond, LLC 6000 Technology Boulevard Sandston, VA 23150 Bankruptcy Case No.: 09-10589 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Qimonda North America Corp. 09-10590 Type of Business: The Debtors make semiconductor products. Chapter 11 Petition Date: February 20, 2009 Court: District of Delaware (Delaware) Judge: Mary F. Walrath Debtors' Counsel: Simpson Thacher & Bartlett LLP Co-Counsel: Mark D. Collins, Esq. collins@RLF.com Michael Joseph Merchant, Esq. merchant@rlf.com Richards Layton & Finger PA One Rodney Square P.O. Box 551 Wilmington, DE 19899 Tel: (302) 651-7700 Fax: (302) 651-7701 Restructuring Managers: Alvarez & Marsal Claims Agent: Epiq Bankruptcy Solutions LLC Estimated Assets: More than US$1 billion Estimated Debts: More than US$1 billion The Debtor's Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Applied Materials Trade US$9,916,367 3050 Bowers Avenue Santa Clara, CA 95054 Tel: (800)-468-8888 x 3 Fax: (866) 265-9330 Sumco USA Corp. Trade US$6,483,955 5700 Granite Parkway Suite 445 Plano, TX 75024 Tel: (972) 987-1988 Fax: (972) 987-1999 TokyoElectron Limited Trade US$5,926,621 3-1 Akasaka 5-Chome, Minato-Ku Tokyo-to, JAPAN Tel: 81-3-5561-7000 Fax: 81-3-5561-7400 Siltronic Trade US$4,024,0950 4010 Moorpark Avenue San Jose, CA 95117 Tel: (408) 296-7887 Fax: (408) 554-9728 MemcElectronic Trade US$3,025,412 Materials, Inc, 501 Pearl Drive PO Box 8 S1. Peters, MO 63376 Tel: (636-474~5559 Fax: 636474-5190 JSR Microelectronics Trade US$2,847,237 1280 N Mathilda Ave. Sunnyvale, CA 94089 Tel: (919) 479-6981 Fax: (408) 543-8999 Tokyo Electron America Trade US$2,259,178 2400 Grove Blvd. Austin, TX 78741 Tel: (800) 865-9650 Fax: (800) 832-1528 Air Products & Chemicals Trade US$2,085,243 Inc. 2005 Reservoir Rd Baltimore, MD 21219 Tel: (410) 477-2882 Fax: (410) 477-1285 West Coast Quartz Corp. Trade US$1,821,596 1000 Corporate Way Freemont, CA 94539 Tel: (510) 249-2160 x 127 Fax: (510) 6514617 Fujifilm Trade US$1,432,934 80 Circuit Drive North Kensington, RJ 02852 Tel: (401-431-2484 Fax: 401-431-0071 ASML, ASM Lithography Trade US$1,380,434 8555 S. River Parkway Tempe, AZ85284 Tel: (804) 652-2380 Fax: (804) 6524782 Rohm & Haas Electronic Trade US$1,350,084 Materials 451 Bellevue Rd. Newark, DE 19713 Tel: (800) 404-8775 x 2908 Fax: (302) 451-6700 Cityof Richmond Trade US$1,261,348 600E. BroadStreet Room 711 Richmond, VA 23219 Tel: (804) 780-5279 Fax: (804) 780-4477 Clariant Corp. Trade US$1,035,525 Electronic Materials l AZ 70 MeisterAvenue Somerville, NJ08876 Tel: (843) 667-1251 Fax: (843) 667-1251 Lam Research Trade US$896,750 135S Lasalle S1. Dept 35 Chicago, IL 60674 Tel: (888) 526-7727 Fax: (510) 572-1093 Honeywell Electronic Trade US$797,940 Chemicals LLC 6760W Chicago St. Chandler, AZ 85226 Tel: (800) 279-9998 Fax: (973) 455-6154 Ebara Technologies Inc. Trade US$710,627 51 Main Ave. Sacramento, CA 95838 Tel: (703) 392-4286 Fax: (916) 830-1900 Komatsu Silicon America LLC Trade US$686,037 1915 NW Amberglen Pkwy Suite 200 Beaverton, OR 97007 Tel: (717) 241-2425 Fax: (503) 844-3367 Varian Semiconductor Trade US$679,161 35 Dory Road Gloucester, MA 09120 Tel: (800) 344-1111 Fax: (978) 463-5501 Chewning & Wilmer, Inc. Trade US$626,456 2508 Mechanicsville Trnpk. Richmond, VA 23223 Tel: (804) 231-7373 Fax: (804) 231-1330 Cymer Inc Trade US$590,189 17075 Thornmint Ct. San Diego, CA 92127 Tel: (858) 385-6450 Fax: (858) 385-7043 Creftcorps Trade US$579,278 217 W. Williamsburg Road Sandston, VA 23150 Tel: (804) 737-9296 Fax: (804) 737-9297 Columbia Valve & Fitting Trade US$549,942 Inc. 7125 Thomas Edison Dr. Ste. 225 Columbia, MD 21046-2208 Tel: (410) 290-1348 Fax: (410) 290-1114 Murata Automated Systems Trade US$530,267 Systems Data2Logistics Trade US$511,667 AtmiMaterials Ltd. Trade US$507,937 formerly ADCS TosohSET Trade US$475,806 Brewer Science Inc. Trade US$448,122 Heraeus Quartztech, Inc. Trade US$437,980 Moses Lake Industries Trade US$417,618 The petition was signed by Miriam Martinez, president and chief financial officer. QIMONDA NA: To Separate from Richmond Unit; To Sell QR Plant ------------------------------------------------------------ Qimonda North America Corp. and Qimonda Richmond LLC, U.S. subsidiaries of German semiconductor memory product maker Qimonda AG, said in papers submitted to the U.S. Bankruptcy Court for the District of Delaware that they intend to locate a purchaser for all of QR's assets and consummate a transaction. QNA and QR filed for Chapter 11 before the Delaware bankruptcy court on February 20. Their parent, Qimonda AG, filed an application with the local court in Munich, Germany, January 23, 2009, to open insolvency proceedings. The insolvency petition was a result of the massive drop in prices in the DRAM industry and dramatically decreased access to financing on the capital markets, both of which have led to the deterioration of the financial position of Qimonda in recent months. QAG and its affiliates outside the United States are not "debtors" in the bankruptcy proceedings in the United States. QNA is the North American sales and marketing subsidiary of QAG and all its subsidiaries -- "Global Company" -- and is also the parent of Qimonda Richmond LLC. QR performs part of the manufacturing of products sold by the Global Company. "The Debtors believe that QR's Richmond, Virginia operation is a state-of-the-art facility and could be a valuable asset to a strategic purchaser," says Miriam Martinez, president and chief financial officer of QNA. "In addition, the Debtors' other assets, including its customer lists and equipment, are potentially valuable properties that can be sold to a strategic purchaser." QNA, according to Ms. Martinez, may separate from QR and be included in the sale or reorganization of the Global Company. As of their bankruptcy filing, QNA has 879 employees, 790 of whom were leased to QR. This represents a reduction of approximately 1,989 employees since January 2008. The employees operate primarily at four facilities: -- Cary, North Carolina. Employees at the Cary Facility primarily perform support functions in the human resources, sales, legal, finance, IT and facilities departments. -- Sandston, Virginia. Employees at the Richmond Facility are involved in the manufacturing and production of the Debtors' products and also performs support functions. -- San Jose, California. Employees at the San Jose facility perform sales, marketing and logistica functions. -- Houston, Texas. Employees at this facility perform sales functions. On February 3, 2009, the Debtors determined that, due to the QAG insolvency, which mean QAG was not purchasing output from QR, coupled with a lack of access to cash, the Debtors could no longer fund ongoing operations in Richmond, Virginia. As a result, the Debtors unexpectedly were required to ramp down all production in QR by completing wafer testing on existing inventory but not manufacturing any additional units. On that day, due to the Debtors' inability to secure financing, approximately 500 of the Debtors' employees were laid off with another approximately 500 employees scheduled to leave over the following 30 days. By the end of April 2009, the Debtors intend to reach an idle state with a skeleton crew of 50 to 60 employees. The Debtors plan to finance their operations going forward though cash flow from operations. As of the petition date, the Debtors have approximately US$10.3 million of cash. The Debtors' capital structure consists primarily of several lease transactions in which QR is the lessee; QNA does not have any debt. About Qimonda AG Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. Qimonda AG, filed an application with the local court in Munich, Germany, on January 23, 2009, to open insolvency proceedings. QAG's U.S. units, Qimonda North America Corp. and Qimonda Richmond LLC, filed for Chapter 11 before the Delaware bankruptcy court on February 20 (Bankr. D. Del., Lead Case No. 09-10589). Mark D. Collins, Esq., at Richards Layton & Finger PA, has been tapped as counsel. In its bankruptcy petition, Qimonda estimated assets and debts of more than US$1 billion. * GERMANY: Approves EUR50 Billion Economic Stimulus Plan -------------------------------------------------------- BBC News reports that Germany has approved a EUR50 billion (US$63 billion, GBP44 billion) stimulus package. The plan, which was approved by the upper house parliament, includes infrastructure investments, tax relief, reductions in health care contributions and money for families with children, the report relates. "We are operating on the principle that Germany is strong and therefore can come to terms with this difficult economic situation," the report quoted Chancellor Angela Merkel as saying. "With the biggest package in the history of the federal republic of Germany, we are also living up to our international responsibilities." As reported in the TCR-Europe, citing BBC News, Germany, Europe's largest economy, officially slipped into a recession in November. BBC disclosed that according to EU figures, the country's economy contracted by 0.5% in the third quarter and shrank 0.4% in the second quarter. On Feb. 18, 2009, the TCR-Europe reported that citing the country's Federal Statistic Office, Breakingnews.ie said the German economy shrank by 2.1% in the fourth quarter of 2008, the biggest quarterly decline since German reunification in 1990. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D G R E E C E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D COMMERCIAL VALUE: Fitch Holds 'B+' Financial Strength Rating ------------------------------------------------------------ Fitch Ratings has maintained a Rating Watch Negative on the Insurer Financial Strength Ratings of Commercial Value AAE, Aspis Pronia AEGA and Aspis Pronia AEAZ. The IFS Ratings of all three entities are 'B+'. Fitch originally applied the RWNs to the three entities on August 1, 2008. Commercial Value was placed on RWN last year following the July 29, 2008 announcement by the Private Insurance Supervisory Committee, the Greek regulator, that CV did not have sufficient admissible assets to cover its regulatory required capital and that it needed to increase its capital base by EUR88.7 million by September 15, 2008. The regulatory decision also required the replacement of an amount corresponding to the value of ASPIS LIV (Sweden) shares totalling to EUR6.2 million, and the removal of the charge Eurobank EFG Cyprus Ltd has on EUR9.25 million of CV's deposits. The original deadline of September 15, 2008 was subsequently extended to September 30, 2008 by the regulator and the designated EUR93.8 million amount was deposited to a permitted account. The capital injection was provided by an increased shareholding from Aspis Holdings Public Company of CV. Regarding the further stipulations, CV has proposed to replace the total value of the ASPIS LIV shares and the deposit at Eurobank EFG Cyprus Ltd with real estate property of a minimum value of EUR20 million. PISC has yet to approve the valuation of the building due to staffing issue. Decisions from PISC are made by a board of directors, appointed by Minister of Economy in Greece. There has been a change of minister at the Ministry of Economy in recent months, and the new Minister of Economy in Greece has yet to appoint new members to the board. The RWNs on Aspis Pronia AEGA and Aspis Pronia AEAZ have also been maintained as the regulator has indicated that the Aspis companies cannot account for their shareholdings in CV as part of their capital available to cover solvency requirements. The substantial CV shareholding by the Aspis companies means that the problems facing CV could impact the financial position of Aspis Pronia AEGA and Aspis Pronia AEAZ. CV, Aspis Pronia AEGA and Aspis Pronia AEAZ's ratings are facing potential downward pressure. This is due to the difficulties raised by the competitive operating environment of the Greek insurance market, the limited ability to refinance in the current financial climate, and the general economic downturn in Greece. Fitch also expects the full year 2008 results for all three entities to be weak. The RWNs will be resolved over the coming weeks, pending PISC's decision on the proposed replacement of the assets and the publication of the companies' 2008 audited financial results. CV and the two Aspis Pronia companies are part of the Aspis Group which runs insurance, banking and other operations mainly in Greece and Cyprus. The group also has small insurance operations in Sweden and Albania. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D H U N G A R Y =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D HUNGARIAN TELEPHONE: Obtains Waiver Under Senior Credit Facilities ------------------------------------------------------------------ Hungarian Telephone and Cable Corp. obtained a waiver under its senior credit facilities agreement dated August 6, 2004, as amended, permitting a corporate reorganization to effectively change HTCC's place of incorporation from Delaware to Denmark, as approved by HTCC's Board of Directors on November 27, 2008. A special meeting of the stockholders of HTCC to adopt the merger through which the corporate reorganization will be implemented is scheduled to take place on February 24, 2009. If the merger is adopted at the special meeting and all conditions precedent to the merger are satisfied, HTCC currently anticipates being in position to consummate the reorganization on or around February 26, 2009, in accordance with the Agreement and Plan of Merger dated November 27, 2008, unless the Board of Directors of HTCC resolves to abandon the merger. HTCC is in discussions with several financing sources to refinance its senior credit facilities agreement and its EUR100 million bridge loan agreement, dated March 3, 2008. There can be no assurances regarding the outcome or the scope of these refinancing discussions. Hungarian Telephone and Cable Corp. (NYSE ALTERNEXT U.S.:HTC), operating under the Invitel brand name, is the number one alternative and the second largest fixed line telecommunications and broadband Internet Services Provider in the Republic of Hungary with more than 1 million customers in Hungary. In addition to delivering voice, data and Internet services in Hungary, it is also a leading player in the Central and Eastern European wholesale telecommunications capacity and data market. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D I R E L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D GOLDEN DISC: High Court Appoints Examiner ----------------------------------------- High Court Ms Justice Mary Finlay Geoghegan on Monday approved the appointment of Michael McAteer of Grant Thornton as examiner to Golden Disc after an independent accountant's reports stated that the music retail group had a reasonable prospect of survival as a going concern, Breakingnews.ie reports. The report relates the court heard that the chain can survive provided certain measures are put in place, including realizing sales targets, reducing costs and a renegotiation with landlords along with a scheme of arrangement for creditors. Loss-making stores would have to be closed, the report states. According to the report, the company was in a cash positive situation and could meet its obligations during the examinership process. As reported in the TCR-Europe on Feb. 17, 2009, citing the Irish Times, High Court Mr Justice Roderick Murphy appointed Mr. McAtter as interim examiner to Golden Disc on the application of Sony Entertainment Ltd's Lyndon MacCann SC. Golden's financial adviser said the group, which operates 20 stores around the country, including six franchise stores, was now insolvent and had proposed a voluntary scheme of arrangement for creditors. The report disclosed that of the group's 20 stores, six were making losses. It is understood eight of the stores operated by the group are operating profitably while four of the six franchised stores are also operating profitably, the report added. Golden Disc's total liabilities stood at some EUR9.5 million, EUR1.38 million of which is owed to Baggot Sreet, Dublin-based Sony, the report stated citing the financial adviser. The financial adviser attributed the insolvency to significant rent increases across several stores, especially Dublin city center stores, the report noted. THOMAS READ: High Court Orders Liquidation of Four Companies ------------------------------------------------------------ Breakingnews.ie reports that the High court has ordered to liquidate four companies in the Thomas Read group after it heard they have no reasonable prospect of survival. The report relates following an application by Kieran McCarthy, examiner to the group, Ms Justice Mary Finlay Geoghegan on Monday appointed chartered accountant Anthony Weldon as liquidator to the four companies, Eatoncroft Limited, Jestdale Limited, Kadaran Limited and Topart Limited. Meanwhile, survival proposals for the remaining nine companies in the group are continuing, the report notes. The judge, the report discloses, extended court protection for the companies until March 6 while the examiner finalizes the survival proposals. Rescue Plan As reported in the TCR-Europe on Dec. 9, 2008, citing the Independent.ie, Ms Justice Mary Finlay Geoghegan approved a rescue plan for 21 of Dublin's best known bars and restaurants operated by the Thomas Read group after being convinced that the companies are insolvent but have a reasonable prospect of survival in whole or in part if a number of conditions are met. Citing Gary McCarthy, counsel for the group, Independent.ie stated the conditions include securing additional investment, restructuring debts and resolving "the situation" with the group's former managing director Mark Leavey, who initiated court proceedings over being made redundant. The High Court judge, Independent.ie recalled, confirmed Mr. McCarthy as examiner to Sharmane Ltd, the parent company of the Thomas Read group, and as examiner to 13 of the 14 companies operating the bars. The court heard all but three of the companies are trading profitably, Independent.ie noted. According to Lyndon MacCann, counsel for the examiner, the companies would not need external finance to keep going during the protection period. He added the examiner had also received nine unsolicited queries expressing interest in either the group itself or assets within it. The judge however adjourned the application for examinership for the 14th company -- Floridita Ireland Ltd, which operates a bar and restaurant in the Irish Life Centre, Abbey Street -- as the agreed transfer of 60pc of the shareholding of that company to Sharmane is not complete and therefore, does not yet fall within the legal definition of a related company, Independent.ie added. Debts On Dec. 2, 2008, the TCR-Europe reported that according to RTE Business, Guerneville Ltd petitioned the High Court to put the Thomas Read group of companies into examinership as Sharmane was likely or unlikely to be able to pay its debts. The companies, which employ more than 400 people, racked up debts of EUR26.7 million, RTE Business disclosed. Citing Gary McCarthy of Guerneville, RTE Business stated the Diageo Ireland, Heineken Murphy Breweries and Britvic C&C were among the largest creditors, while the group's banker creditors included ACC Bank, owed more than EUR15 million; Ulster Bank, owed EUR5.6 million; AIB, owed EUR3.5 million and Anglo Irish Bank, owed EUR597,000. =3D=3D=3D=3D=3D=3D=3D=3D=3D I T A L Y =3D=3D=3D=3D=3D=3D=3D=3D=3D FIAT SPA: Moody's Downgrades Long-Term Ratings to 'Ba1' ------------------------------------------------------- Moody's Investors Service downgraded Fiat S.p.A's long term ratings to Ba1 from Baa3 and its short term ratings to Not Prime from Prime-3. The outlook on the ratings is negative. At the same time Moody's assigned a Ba1 Corporate Family Rating. This concludes Moody's review for downgrade initiated on January 15, 2009. Falk Frey, Senior Vice President and the lead analyst at Moody's for the European automotive sector, said: "The downgrade reflects the significantly negative free cash flow in FY2008 leading to a material deterioration in Fiat's financial flexibility with reported net industrial debt deterioration of EUR6.3 billion to EUR5.9 billion." In Moody's view the markets will remain challenging in 2009 with a significant drop in volume expected and with limited prospect of a meaningful recovery in 2010. Against this background Moody's is of the opinion that operating profitability and cash flow generation will remain very weak in the intermediate term. As a result the time for recovery of Fiat's credit metrics in line with an investment grade rating is likely to take more time than can be accommodated for such rating level without even considering more negative economic scenarios. The Ba1 rating nonetheless continues to recognise the strong financial recovery in recent years, sound business profile of the Group based on diversified businesses, with good product offering and solid market positions in several geographic areas. The Ba1 rating also takes into account Fiat Group Automobiles' solid market positions in Italy and Brazil, but at the same time the concentration highlights the reliance of Fiat on the development of those markets where Fiat sells around two-thirds of its cars. The agency also acknowledges that management is proactively addressing the operating issues of the company and remains focused on strengthening the weak liquidity profile. Fiat's consolidated revenues increased in 2008 by 1.5% to 59.4 billion driven by a 7.4% increase in CNH revenues (+ 15.3% in US$ terms), a 3.1% increase in Components and +1.3% for Fiat Group Automobiles. Only Iveco reported a decline in revenues of 3.8% in 2008. Nonetheless, Fiat was also affected by the global economic development in Q4 2008 with declining revenues by 17.2% with all divisions down in particular Trucks (-28.6%), FGA (-19.3%) and Components (-22.2%). Trading profit for the Group increased by EUR129 million in 2008 compared to 2007 to EUR3.4 billion with all divisions contributing except Components where profits declined by EUR107 million vs. 2007. During 2008, the Group absorbed approx. EUR5.8 billion in cash, attributable to higher working capital and an increase in Capital expenditures by EUR1.3 billion. Reduced business volumes especially in the fourth quarter 2008 resulted in rising inventories of EUR2.1 billion (mostly trucks and Agricultural and Construction equipment business). Fiat expects most of this increase to reverse in the first half of 2009 as agricultural inventories are drawn down against a strong order book. In addition, dividend payout of EUR546 million and share repurchases of EUR239 million resulted in a significant rise in Fiat's reported Industrial Net Debt to EUR5.9 billion. The negative outlook reflects Fiat's heavy reliance on continued support of its core banks with regard to the renewal of the company's short term bank lines as well as Management's ability to swiftly release cash from working capital to shore up the Group's overall financial position. The negative outlook also anticipates a severe downturn in Fiat's key markets and the challenge facing management to adequately downscale production in line with reduced demand. Moody's anticipates Fiat's car and light commercial vehicle demand declining by around 20% in the first quarter of 2009. Moody's ratings anticipate a sequential improvement of volumes and cash flow generation in the subsequent quarters. The ratings could come under further downward pressure however, in case of evidence that the market environment would turn worse than anticipated with regards to volumes or prices and the company's inability to adjust capacity measures in a timely and adequate manner resulting in further cash absorption by the industrial operations in contrast to the company's expectation of a positive industrial free cash flow of more than EUR1.0 billion in 2009. Downgrades: Issuer: Fiat Finance & Trade Ltd. -- Senior Unsecured Medium-Term Note Program, Downgraded to Ba1, NP from Baa3, P-3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3 Issuer: Fiat Finance Canada Ltd. -- Senior Unsecured Medium-Term Note Program, Downgraded to Ba1 from Baa3 Issuer: Fiat Finance North America Inc. -- Senior Unsecured Medium-Term Note Program, Downgraded to Ba1, NP from Baa3, P-3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3 Reinstatements: Issuer: Fiat S.p.A. -- Corporate Family Rating, Reinstated to Ba1 Outlook Actions: Issuer: Fiat Finance & Trade Ltd. -- Outlook, Changed To Negative From Rating Under Review Issuer: Fiat Finance Canada Ltd. -- Outlook, Changed To Negative From Rating Under Review Issuer: Fiat Finance North America Inc. -- Outlook, Changed To Negative From Rating Under Review Issuer: Fiat S.p.A. -- Outlook, Changed To Negative From Rating Under Review Withdrawals: Issuer: Fiat S.p.A. -- Issuer Rating, Withdrawn, previously rated Baa3 Moody's last rating action on Fiat was the review for possible downgrade of the Baa3 long- and P-3 short term ratings on January 15, 2009. Fiat S.p.A., headquartered in Turin, is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR59.4 billion generated in fiscal year 2008. The company is also a leading European-based manufacturer of commercial vehicles and one of the largest producers of agricultural equipment in the world. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D K A Z A K H S T A N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ASTANA OIL: Creditors Must File Claims by April 3 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Astana Oil Company insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: Auelbekov St. 139a-228 Kokshetau Akmola Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Akmola Gorky St. 37 Kokshetau Akmola Kazakhstan DIKA MANAGEMENT: Creditors Must File Claims by April 3 ------------------------------------------------------ LLP Dika Management insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: Micro district 9, 44-108 Almaty Kazakhstan EURO ASIA: Creditors Must File Claims by April 3 ------------------------------------------------ LLP Euro Asia Development insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: Jeltoksan St. 59 Almaty Kazakhstan G KART TELECOM: Creditors Must File Claims by April 3 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP G Kart Telecom (RNN 600900536034) insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan GLOBAL SECURITIES: Creditors Must File Claims by April 3 -------------------------------------------------------- JSC Global Securities insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: Dostyk Ave. 117/6 Almaty Kazakhstan KAZAKH MORTGAGE: Fitch Affirms Ratings on Class C Notes at 'BB' --------------------------------------------------------------- Fitch Ratings has assigned a Rating Watch Negative to the class A and B notes, rated 'BBB+' and 'BBB' respectively, issued by Kazakh Mortgage Backed Securities 2007-I B.V. The class C notes were affirmed at 'BB' with a Stable Outlook. The action follows the downgrade by Fitch of BTA Bank to 'B+'/RWN from 'BB'/Outlook Negative as well as the assignment of a Rating Watch Negative to the Republic of Kazakhstan's Long-term local currency Issuer Default Rating of 'BBB' by Fitch on February 19, 2009. Kazakh MBS is a securitization of mortgage loans originated by BTA Ipoteka, a wholly-owned subsidiary of BTA Bank. In line with Fitch's criteria, the rating and Outlook of the senior notes are linked to the originator's rating and Outlook. Based on the current legal and regulatory environment in Kazakhstan, Fitch believes that the maximum achievable distance between the rating of the senior notes and the rating of the originator is equal to six notches. As such, further downgrades of the originator would trigger further negative action on the rating of the class A notes. Fitch highlights that a downgrade of Kazakhstan would result in higher loss severity assumptions for the notes due to reattachment of the default model stresses to a lower rating scenario. Fitch has analysed the effect of a potential single-notch downgrade of Kazakhstan on the Kazakh MBS' notes. The results of the analysis showed that class A and B of notes will not be able to withstand the higher stresses implied by a single-notch downgrade of the sovereign. As a result of this, Fitch has assigned a Rating Watch Negative to the senior and mezzanine notes of Kazakh MBS. The transaction has amortized rapidly by approximately 60% of original balance due to high prepayment rates and the initiative of BTA Ipoteka, to systematically repurchase loans from the transaction. The annualized prepayment and loan repurchase rates have been each around 15% of the outstanding collateral balance since closing. Defaults borne by the transaction to date have been negligible due to the fact to the fact that the originator has repurchased most of the delinquent loans. In order to follow the performance of the closing portfolio, Fitch performs regular analyses of the loan-by-loan performance data provided by the originator and identifies the number of "distressed" loans. According to Fitch estimates, cumulative 60+ days delinquencies including repurchased and prepaid loans reached 5.6% of the closing portfolio in January 2009, up from 4.5% as of September 2008. KVARTS JSC: Creditors Must File Claims by April 3 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared JSC Gold Mining Enterprise Kvarts insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan RUDNY SOKOLOV: Creditors Must File Claims by April 3 ---------------------------------------------------- JSC Branch of Rudny Sokolov Stroy has declared insolvency. Creditors have until April 3, 2009, to submit written proofs of claim to: Gornyakov St. 70 Rudny Kostanai Kazakhstan UJ STROY SNUB: Creditors Must File Claims by April 3 ---------------------------------------------------- LLP UJ STROY SNUB insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: Ujnaya St. 20 Myrzakent Maktaaralsky district South Kazakhstan Kazakhstan UVELIR PROM: Creditors Must File Claims by April 3 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared JSC Kaz Uvelir Prom insolvent. Creditors have until April 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D K Y R G Y Z S T A N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SKY LIGHT: Creditors Must File Claims by March 10 ------------------------------------------------- LLC Sky Light Invest has declared insolvency. Creditors have until March 13, 2009, to submit written proofs of claims to: LLC Sky Light Invest Room 210 Togolok Moldo St. 60 Bishkek Kyrgyzstan =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D R O M A N I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D * ROMANIA: New Insolvency Cases to Reach 20,000 in 2009 ------------------------------------------------------- Curierul National reports that the number of new insolvency cases in Romania will increase by 38% this year to 20,000 from 14,500 in 2008 due to the credit crisis. Citing Arin Stanescu of law firm "Stanescu, Milos, Dumitru si Asociatii", the report discloses that 1600 insolvency filings were registered in January, up from 1,000 cases in the same period last year. "There are many viable companies which, because of the credit crisis, will enter cessation of payment," the report quoted Mr. Stanescu as saying. The report relates Mr. Stanescu said that beside the need for protective measures, the companies should think more about reorganization and less about the bankruptcy procedure. Mr. Stanescu, as cited by the report, said "I think banks should meet and discuss, maybe even behind closed doors, to find solutions. No financial institution should rush to liquidate the debtor company, but should help a debtor to recover." =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D R U S S I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D BUKET-STROY LLC: Creditors Must File Claims by March 15 ------------------------------------------------------- Creditors of LLC Buket-Stroy (Construction) have until March 15, 2009, to submit proofs of claims to: I. Alimov Temporary Insolvency Manager P.Lumumby Str. 12 428022 Cheboksary Chuvashiya Russia The Arbitration Court of Chuvashiya will convene at 1:30 p.m. on May 5, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A79=9610204/2008. CHELYABINSKIY AUTOMATIVE: Under Bankruptcy Procedure ---------------------------------------------------- The Arbitration Court of Chelyabinskaya has commenced external management bankruptcy procedure on FSUE Chelyabinskiy Automative- Mechanical Plant. The Case is docketed under No. A76=9616205/2006=9660=96158. The External Insolvency Manager is: I. Zolotukhin Post User Box 103 Central Postal Office 456200 Zlatoust Russia The Court is located at: The Arbitration Court of Chelyabinskaya Vorovskogo Str. 2 454000 Chelyabinsk Russia The Debtor can be reached at: FSUE Chelyabinskiy Automative-Mechanical Plant Yaroslavskaya Str.1 454028 Chelyabinsk Russia KAMA TIMBER LLC: Creditors Must File Claims by March 15 ------------------------------------------------------- Creditors of LLC Kama-Timber (TIN 5905256047, PSRN 1075905009960) have until March 15, 2009, to submit proofs of claims to: V. Pototskaya Temporary Insolvency Manager Office 65 Svyazistov Str. 24 614094 Perm' Russia The Arbitration Court of Permskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A50=96 21009/2008. The Debtor can be reached at: LLC Kama-Timber Promyshlennya Str. 117 614065 Perm' Russia MOSCOW STARS: Fitch Affirms Rating on Class B Notes at 'BB' ----------------------------------------------------------- Fitch Ratings has downgraded the senior class A notes and affirmed the mezzanine class B notes issued by Moscow Stars B.V.: -- Class A (ISIN XS0307297225): downgraded to 'BBB-' (BBB minus) from 'BBB'; Outlook Negative -- Class B (ISIN XS0307297811): affirmed at 'BB'; Outlook Stable The rating action follows Fitch's recent downgrade of the originator of the securitized mortgage loans, CB Moskommertsbank. The agency downgraded the Bank's Long-term Issuer Default Rating to 'B-'(B minus)/Outlook Negative on February 20, 2009 from 'B'/Outlook Negative. In line with Fitch's criteria, the rating and Outlook of the senior notes are linked to the originator's rating and Outlook. The downgrade of the Bank had widened the differential between the rating of Moscow Star's class A notes and the rating of the originator, bringing it to a level that had exceeded the six notch limit, as per Fitch's emerging markets criteria. The agency has subsequently downgraded the senior notes to a rating level commensurate with a six notch differential. The Outlook on the Class A notes remains Negative, as further downgrades of the originator would trigger further downgrades of class A notes rating. The transaction has so far performed in line with Fitch's expectations. As of January 2009, the cumulative defaults reported by the servicer amounted to 1.22% of the initial collateral balance while outstanding defaults had reached 0.2% of the current outstanding principal balance. The average annualized prepayment ratio since inception stood at 18.5%, as calculated by Fitch. High prepayments have led to an increase in credit enhancement support available to each tranche. As of February 2009, the credit enhancement for the class A and B notes was 24.8% and 16.4% respectively. OMSK PAPER: Creditors Must File Claims by March 15 -------------------------------------------------- Creditors of CJSC Omsk Paper Mill (TIN 5528027779) have until March 15, 2009, to submit proofs of claims to: V. Evdokevich Temporary Insolvency Manager Office 404 Prospect K. Marksa 18/6 644042 Omsk Russia The Arbitration Court of Omskaya will convene at 10:30 a.m. on June 9, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A46=9624480/2008. The Debtor can be reached at: CJSC Omsk Paper Mill Tsentralnaya Str. 18a Omskiy 644531 Omskaya Russia REM-STROY-TSENTR LLC: Creditors Must File Claims by April 14 ------------------------------------------------------------ Creditors of LLC Rem-Stroy-Tsentr (Construction) (TIN 7202144199, PSRN 1067203003702) have until March 15, 2009, to submit proofs of claims to: P. Sidor Insolvency Manager Fifth Floor Minskaya Str. 88 Tumen Russia The Arbitration Court of Tumen commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A70=964025/3=962008. The Debtor can be reached at: LLC Rem-Stroy-Tsentr Solnechnyy proezd 21-213 Tumen Russia SAYAN-EXPORT LLC: Creditors Must File Claims by March 15 -------------------------------------------------------- Creditors of LLC Sayan-Export Timber Company have until March 15, 2009, to submit proofs of claims to: S. Makletsov Temporary Insolvency Manager Kirova Str. 103-148 Abakan Khakasiya Russia The Arbitration Court of Khakasiya commenced bankruptcy supervision procedure. The case is docketed under Case No. A74=96 3101/2008. The Debtor can be reached at: LLC Sayan-Export Abakan Khakasiya Russia URENSKIY PREPRODUCTION: Creditors Must File Claims by March 15 -------------------------------------------------------------- Creditors of CJSC Urenskiy Preproduction Tractor Plant (TIN 5235004309) have until March 15, 2009, to submit proofs of claims to: V. Talantov Temporary Insolvency Manager Ploshchad' Revolutsii 7a 603002 Nizhny-Novgorod Russia The Arbitration Court of Nizhegorodskaya will convene on May 26, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A43=9632304/2008, 36=96276. The Debtor can be reached at: CJSC Urenskiy Preproduction Tractor Plant Mekhanizatorov Str. 45 Uren' 606800 Nizhegorodskaya Russia WOOD-PROCESSING PLANT: Creditors Must File Claims by March 15 ------------------------------------------------------------- Creditors of LLC Wood-Processing Plant have until March 15, 2009, to submit proofs of claims to: A. Gor'kov Insolvency Manager Post User Box 15 630011 Novosibirsk Russia Tel: 8-913-457-39-23 The Arbitration Court of Omskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46=9618199/2008. The Debtor can be reached at: LLC Wood-Processing Plant Tupik Sennoy Str.3 644027 Omsk Russia ZMEINOGORSKIY DISTILLERY: Bankruptcy Hearing Set March 3 -------------------------------------------------------- The Arbitration Court of Altayskiy will convene at 12:00 p.m. on March 3, 2009, to hear bankruptcy proceedings on OJSC Zmeinogorskiy Distillery (TIN 2206000417, PSRN 1022200730452). The case is docketed under Case No. A03=969331/03B. The Insolvency Manager is: Ye. Gorskikh Post User Box 3503 656049 Barnaul Russia Tel: 8(3852)380104. The Court is located at: The Arbitration Court of Altayskiy Hall 415 Prospect Lenina Str. 76 Barnaul Russia The Debtor can be reached at: OJSC Zmeinogorskiy Distillery Volkova Str. 84 Zmeinogorsk Altayskiy Russia ZOLOTO SUTAMA: Court Names Temporary Insolvency Manager ------------------------------------------------------- The Arbitration Court of Yakutiya appointed S.Shishigin as Temporary Insolvency Manager for LLC Zoloto Sutama (Gold Mining). The case is docketed under Case No. A58=966395/08. He can be reached at: Chernyshevskogo Str. 56/2 677007 Yakutsk Russia Fax: (4112) 36=9663-24 The Debtor can be reached at: LLC Zoloto Sutama Prospect Geologov 77/2 678960 Neryungi Yakutiya Russia =3D=3D=3D=3D=3D=3D=3D=3D=3D S P A I N =3D=3D=3D=3D=3D=3D=3D=3D=3D BANCAJA 12: S&P Downgrades Rating on Class D Notes to 'BB-' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on the class C and D notes issued by Bancaja 12 Fondo de Titulizaci=F3n de Activos. S&P also affirmed the ratings on the class B notes. Bancaja 12's class A notes remain on CreditWatch negative, where they were placed on Nov. 27. The rating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. This analysis showed that the credit enhancement available for Bancaja 12's class C and D notes was not sufficient to maintain the current ratings. This was mainly driven by further and expected future deterioration in pool performance. Bancaja 12 is a Spanish residential mortgage-backed securities transaction backed by a pool of first-ranking mortgages secured over owner-occupied residential properties in Spain, originated by Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja). The transaction closed in April 2008. Of the loans, 62.62% are concentrated in three regions, Valencia, Catalonia, and Andalusia. Valencia is the bank's historical market, and Andalusia and Catalonia are among the most populated regions in Spain. It is unusual for a pool to be mainly concentrated in these three regions, and this may be a factor driving the arrears. Loans in arrears for more than 90 days have grown substantially since closing, and currently represent 1.82% of the pool balance. Defaults in this transaction are defined as loans in arrears for more than 18 months and consequently are not yet being registered. However, given the evolution of long-term arrears, S&P expects defaulted loans to increase significantly over the near term as delinquent loans transition into defaults. S&P further note that Bancaja is the interest rate swap provider for this transaction. The downgrades are not, however, related to the downgrade of Bancaja to 'A-2' on Sept. 23, 2008, or the concerns S&P has regarding counterparty risk (see related research below). Bancaja 12's class A notes consequently remain on CreditWatch negative. S&P is continuing to monitor the effect of any steps Bancaja takes to mitigate the rating impact on these notes following the bank's downgrade, and S&P expects to take rating action where warranted if sufficient corrective steps are not taken. Ratings List Bancaja 12, Fondo de Titulizaci=F3n de Activos EUR2.1 Billion Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed from Creditwatch Negative Rating ------ Class To From ----- -- ---- C BBB- BBB/Watch Neg D BB- BB/Watch Neg Ratings Kept on Creditwatch Negative Classes Rating ------- ------ A AAA/Watch Neg Ratings Affirmed Classes Rating ------- ------ B A CEMEX ESPANA: Fitch Senior Unsecured Debt Obligations to 'BB' ------------------------------------------------------------- Fitch Ratings has downgraded Cemex, S.A.B. de C.V. and related entities' ratings: Cemex -- Foreign currency Issuer Default Rating to 'BB' from 'BB+'; -- Local currency IDR to 'BB' from 'BB+'; -- Long-term national scale rating to 'A+(mex)' from 'AA-(mex)'; -- MXN5 billion Certificados Bursatiles program to 'A+ (mex)' from 'AA- (mex)'; -- MXN30 billion Programa Dual Revolvente de Certificados Bursatiles program to 'A+(mex)' from 'AA-(mex)'; -- Senior unsecured debt obligations to 'BB' from 'BB+'; -- Unsecured debt issued through the Certificados Bursatiles program to 'A+(mex)' from 'AA-(mex)'. Cemex Espana S.A. -- IDR to 'BB' from 'BB+'; -- Senior unsecured debt obligations to 'BB' from 'BB+'. Rinker Materials Corporation -- US$150 million senior unsecured notes due 2025 to 'BB' from 'BB+'. In addition, Fitch has affirmed Cemex's ratings: -- Short-term national scale rating at 'F1(mex)'; -- MXN2.5 billion short-term portion of Programa Dual Revolvente de Certificados Bursatiles program at 'F1(mex)'. The Rating Outlook for all of Cemex's ratings remains Negative. The rating downgrades reflect Fitch's expectation that Cemex's total adjusted net debt to EBITDAR ratio will remain above 5.0 times (x) during 2009 and 4.0X during 2010. Fitch's definition of adjusted debt includes the perpetual debt instruments issued by Cemex, which are treated as equity under Mexican GAAP, as well as operating leases. This level of leverage is due to unprecedented downturns in three of the company's key markets: the United States, Spain and the U.K. The rating actions also take into consideration an expected weakening of some of the company's markets that performed well in 2009 such as Central and South America, Asia and Mexico. Together these factors could result in Cemex generating less than US$3.4 billion of EBITDAR during 2009, a historical low for the company and a level viewed to be below the typical trough in the company's cash flow cycle. Further considered in the rating actions are the challenges the company will face as it seeks to divest approximately US$2 billion of assets in 2008. These sales are crucial as the company faces debt maturities of approximately US$4.1 billion, US$3.8 billion and US$7.8 billion during 2009, 2010 and 2011, respectively. Obstacles the company will have to overcome as it seeks to sell assets include: the high debt burden of several leading producers of cement and ready mix; tight credit conditions and high cost of capital; and the ability of the company to obtain attractive bids given the current economy uncertainty. The Negative Rating Outlook reflects the challenges that all companies in the cement, ready-mix and aggregate industries will face during 2009 and 2010, particularly those that are reliant upon the U.S. and European markets. While the recently passes stimulus package in the U.S. could help spur demand in the U.S. for the company's products, much of the impact will not be felt during the 2009. Fitch's ratings of Cemex continue to take into consideration the company's strong global business position as an integrated cement player and its ability to continue to generate free cash flow during the worst economic downturn in recent history. The ratings positively factor in the Mexican government's support of Cemex due to the size of the company and its importance to the country's economy. Cemex's credit ratings also take into consideration the banks continued support of the company. On Jan. 27, 2009, the company reached agreement with its banks to reschedule US$2.3 billion of short-term bilateral loans that fell due during 2009 and 2010 into terms that will result in US$607 million maturing in 2009, US$536 million in 2010 and about US$1.2 billion in 2011. The company was also able to extend the maturity of US$1.7 billion of a US$3 billion obligation that was due in December 2009 until 2011. Cemex had total adjusted debt of US$23 billion as of Dec. 31, 2008 and cash and marketable securities of US$993 million; adjusted debt includes total debt plus perpetual debt and operating leases. During 2008, Cemex generated US$4.6 billion of EBITDAR, resulting in a total adjusted debt to EBITDAR ratio of about 5.0x. During the fourth quarter of 2008 the company's EBITDAR declined to about US$860 million from about US$1.35 billion during the prior quarter. Factoring in seasonality, the numbers were still substantially lower than those during the last quarter of 2007, when Cemex's EBITDAR was US$1.15 billion. The drop-off in EBITDAR was driven by steep declines in sales volumes and the devaluation of the Mexican peso, British pound and Euro versus the U.S. dollar. For 2009, Cemex projects an EBITDAR range of about US$3.7 billion to US$3.9 billion. Through free cash flow and asset sales, the company intends to reduce debt by US$3.6 billion. To achieve these goals the company has scaled back its 2009 capital expenses to US$650 million from around US$2 billion during both 2007 and 2008. The company has also implemented a restructuring program aimed at achieving US$700 million of recurring synergies. Cemex is the third-largest cement producer in the world based on production capacity of approximately 97 million metric tons and operates in more than 50 countries. The company is also the global leader in the ready mix concrete market with sales of over 80.5 million cubic meters and an important global player in the aggregates business with sales of 222.7 million tons. In 2008, Cemex generated US$4.37 billion of EBITDA on US$21.8 billion of sales revenues. CONSUMER SPAIN: Fitch Cuts Rating on Class E Notes to 'CC' ---------------------------------------------------------- Fitch Ratings has downgraded FTA Santander Consumer Spain 07-2's floating-rate notes: -- EUR728.9 million class A (ISIN ES0337943007) FRN: downgraded to 'A' from 'AAA'; Negative Outlook -- EUR27 million class B (ISIN ES0337943015) FRN: downgraded to 'BBB+' from 'AA+'; Negative Outlook -- EUR17.5 million class C (ISIN ES0337943023) FRN: downgraded to 'BBB-' from 'A+'; removed from Rating Watch Negative; assigned a Negative Outlook -- EUR26.5 million class D (ISIN ES0337943031) FRN: downgraded to 'B+' from 'BBB+'; removed from Rating Watch Negative; assigned a Negative Outlook -- EUR20 million class E (ISIN ES0337943049) FRN: downgraded to 'CC' from 'CCC'; removed from Rating Watch Negative; assigned 'DR5' Santander 07-2 is a securitization of auto and consumer loans originated by Santander Consumer E.F.C., S.A. (seller and servicer), in Spain. The downgrades reflect the sharp deterioration in the transaction's performance, which is significantly worse than original base case assumptions. As part of the transaction review, Fitch increased the base case default probability to 7.5% and also reduced its recovery expectations for defaulted loans While all product segments have exhibited a weakening performance trend over the past 12 months, the key driver behind the decline in performance of the pool has been the consumer loan sector. This portion of the pool is made up of loans with greater risk attributes, including loans originated by brokers and through the internet, and loans where the originator had limited access to borrower information. Since closing, these sub-segments of the securitized pool have performed materially outside of Fitch's initial expectations. The rising trend in delinquencies and defaults is not only a reflection of the pool collateral composition, as noted above, but also a reflection of the sharp deterioration in Spanish macroeconomic conditions. Unemployment increased to 13.9% in December 2008, from 8.6% in December 2007, and is expected to increase further through 2010. Fitch believes that the slowing economy and the increase in unemployment will continue to push up delinquencies and defaults over the medium term, as well as stressing the amount and the timing of ultimate recoveries. Recent performance data has shown weakening trends in recoveries across Spanish consumer ABS transactions. However, Santander Consumer Finance has, in recent quarters, tightened up underwriting guidelines and reinforced collection efforts. The rating action takes into account both the recent performance of the transaction as well as the revised Fitch base case assumptions for defaults and recoveries. Despite both the transaction's de-leveraging to date and the available excess spread, Fitch believes that the levels of credit enhancement available to the notes are no longer sufficient to support the initial ratings derived from the available information at closing. As such, all the notes have been downgraded to levels reflecting the existing levels of credit protection. Delinquencies, defined as 90 days past due receivables, have increased sharply since closing, standing at 2.6% in May 2008, when they breached the 1.5% early amortization trigger for the transaction. In November 2008, delinquencies stood at 6.5% compared to 4.6% for the prior quarter and are projected to increase further in coming quarters. Despite the transaction benefiting from a relatively strong swap, excess spread has dropped significantly in recent quarters as a result of mounting defaults. For the November reporting period, excess spread was no longer sufficient to cover defaults and triggered a draw on the reserve fund of EUR1.25 million. Given the delinquency pipeline, further draws on the reserve are expected in upcoming quarters. EMPRESAS BANESTO: S&P Cuts Ratings on Class D Notes to 'BB-' ------------------------------------------------------------ Standard & Poor's Ratings Services took various rating actions on the notes issued by Fondo de Titulizacion de Activos PYMES Banesto 2 and Empresas Banesto 1, Fondo de Titulizacion de Activos. Specifically, S&P: -- Lowered and kept on CreditWatch negative the class C notes issued by PYMES Banesto 2; -- Placed on CreditWatch negative PYMES Banesto 2's class A1, A2, and B notes and Empresas Banesto 1's class C and D notes; and -- Took no action on Empresas Banesto 1's other classes of notes, which remain unaffected. The collateral in these transactions comprises loans granted to Spanish small and midsize enterprises and originated by Banco Espa=F1ol de Cr=E9dito S.A. (Banesto; AA/Stable/A-1+). Empresas Banesto 1 S&P has placed Empresas Banesto 1's class C and D notes on CreditWatch negative following S&P's initial analysis of the deal's performance, which has highlighted factors that have increased the possibility of negative rating actions for these junior classes. According to the latest available investor report (December 2008), loans in arrears for more than 90 days have increased to 1.96% of the outstanding collateral or EUR24.3 million, up from 0.51% or EUR7.89 million in June 2008. In this deal, defaults are defined as loan in arrears for more than 12 months and the first default occurred during the last quarter. Gross cumulative defaults currently represent only 0.017% of the original outstanding balance. However, given the current economic environment, S&P expects defaults to increase in the near to medium term. The collateral has amortized to 62% of the original outstanding balance. S&P note that the top 10 obligors now represent 11.03% and the top 20 obligors 16.70%. These obligor concentrations are higher than in similar Spanish SME transactions, leaving the deal more vulnerable to single borrower defaults. S&P will now conduct a deeper analysis of the transaction requesting full loan-level data. PYMES Banesto 2 PYMES Banesto 2 closed in November 2006 and had a two-year revolving period that ended in December 2008. During this time, the issuer bought EUR695.5 million of new SME loans or about 70% of the original collateral balance. The new assets had to comply with certain criteria, including geographical and industry concentration limits. According to S&P's analysis of the data provided, since closing: -- Exposure to single borrowers remains negligible, with the top 10 borrowers representing less than 3% of the total outstanding balance; -- Geographical distribution has remained stable; -- Exposure to the real estate and construction sector has increased; and -- S&P note that the portfolio now includes loans granted to developers. S&P is currently reassessing the risk embedded in the portfolio, focusing on risks related to obligor concentrations, in particular real estate and construction sector exposures, and the concentration of loans granted for development, as well as risks related to loan prepayment profiles. Our initial credit and cash flow analysis of the most recent transaction information and loan-level data that S&P has received showed that the class C notes can no longer maintain their current rating and therefore S&P has lowered it to 'BB'. The results also showed that the probability of a negative rating action for all classes of notes has increased leading to the CreditWatch placements. S&P's cash flow analysis assumed that the EUR75.22 million principal proceeds available to the issuer as of the December investor report will be used to repay the class A notes at the next payment date. At the same time, the transaction remains exposed to potential deterioration in the collateral performance. Loans in arrears for more then 90 days had increased as of December 2008 to 1.37% of the outstanding collateral or EUR12.65 million, up from 0.87% or EUR8.69 million in June 2008. Gross cumulative defaults account for around EUR3 million, representing 0.18% of the total collateral balance including the new additions. S&P expects to resolve the CreditWatch placements after the next payment date when the transaction will start amortizing. Ratings List Rating Lowered and Kept on Creditwatch Negative Fondo de Titulizacion de Activos PYMES Banesto 2 EUR1 Billion Floating-Rate Notes Class To From ----- -- ---- C BB/Watch Neg BBB/Watch Neg Ratings Placed on Creditwatch Negative Fondo de Titulizacion de Activos PYMES Banesto 2 EUR1 Billion Floating-Rate Notes Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA B A/Watch Neg A Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Class To From ----- -- ---- C BBB-/Watch Neg BBB- D BB-/Watch Neg BB- Ratings Unaffected Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA B A PYME VALENCIA: Moody's Reviews 'Ba3' Rating on EUR13.6 Mil. Notes ----------------------------------------------------------------- Moody's Investors Service has placed the ratings of the notes issued by PYME VALENCIA 1, FTA under review for possible downgrade: -- EUR574.8 million Series A2 notes, Placed Under Review for Possible Downgrade; previously, on July 26, 2007 Assigned Aaa; -- EUR47.6 million Series B notes, Placed Under Review for Possible Downgrade; previously, on July 26, 2007 Assigned A3; -- EUR34.0 million Series C notes, Placed Under Review for Possible Downgrade; previously, on July 26, 2007 Assigned Baa3. -- EUR13.6 million Series D notes, Placed Under Review for Possible Downgrade; previously, on July 26, 2007 Assigned Ba3. Date of previous rating action: no previous rating action since initial rating assignment in July 2007. The EUR180.0 million Series A1 notes were fully redeemed in August 2008. The rating action has been prompted by the worse-than-expected collateral performance. Moody's expects to conclude the rating review after receipt of additional information and a detailed assessment of the effects of the deteriorating performance on the outstanding ratings. As of December 2008, the cumulative 90+ delinquencies (i.e. delinquencies equal or greater than 90 days) were equal to 4.37% of the original portfolio balance compared to 2.76% as of the previous quarterly reporting date. The cumulative defaults were equal to 0.13% of the original portfolio balance compared to 0.02% as of the previous quarterly reporting date. As part of the review, Moody's considers also the exposure of the transaction to the real estate sector (either through security in the form of a mortgage or debtors operating in the real estate sector). The deterioration of the Spanish economy has been reflected in the negative sector outlook Moody's published on the Spanish SMEs securitisation transactions. PYME VALENCIA 1, FTA is a securitisation of loans to small- and medium-sized enterprises carried out by Banco de Valencia. At closing, the portfolio consisted of 3,627 loans. The loans were originated between 2003 and 2006, with a weighted average seasoning of 1.73 years and a weighted average remaining term of 7.86 years. The concentration in the "building and real estate" sector according to Moody's industry classification was approximately 59% as of closing. As of December 2008, the number of loans in the portfolio was equal to 2,452 and the weighted average remaining term was equal to 8.8 years. The concentration in the "building and real estate" sector according to Moody's industry classification was approximately 63% as of December 2008. Moody's assigned definitive ratings in July 2007. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. PYMES BANESTO: Fitch Downgrades Rating on Class C Tranche to 'B' ---------------------------------------------------------------- Fitch Ratings has downgraded the ratings of four classes of Fondo de Titulizacion de Activos Pymes Banesto 2 and simultaneously assigned or maintained Negative Outlooks: -- Class A1 (ISIN ES0372260002) downgraded to 'AA' from 'AAA'; assigned a Negative Outlook -- Class A2 (ISIN ES0372260010) downgraded to 'AA' from 'AAA'; assigned a Negative Outlook -- Class B (ISIN ES0372260028) downgraded to 'BBB' from 'AA-'(AA minus); assigned a Negative Outlook -- Class C (ISIN ES0372260036) downgraded to 'B' from 'BBB'; Negative Outlook maintained After taking Spain's economic downturn and the ongoing correction in the real estate and construction sectors into account, Fitch's analysis of the delinquency pipeline and an updated default forecast indicated that the credit protection for classes A1, A2, B and C was no longer adequate to support the prior ratings. As such, these classes have been downgraded and had Negative Outlooks assigned or maintained. This review and the corresponding rating action is part of an ongoing review of all Spanish small- and medium-sized enterprise collateralized debt obligation transactions outstanding. This transaction closed in November 2006. Unlike most SME CDO transactions, this transaction included a two-year revolving period that ended in December 2008. As such, despite its seasoning, this transaction has not benefitted from significant de-leveraging. In addition, since the conclusion of the revolving period, delinquencies have steadily increased and are expected to rise further in subsequent quarters. As of December 15, 2008, 90+ day delinquencies stood at 1.4% of the current portfolio. Spanish macroeconomic conditions have deteriorated sharply in recent quarters and there has been a notable increase in delinquencies across SME CDO transactions. However, many originators have begun to reinforce collection efforts by adding staff and employing more proactive collection strategies. Given Fitch's expectation for further credit deterioration in the SME segment, the agency continues to review rated all SME CDO transactions to ensure the credit protection in place is sufficient to maintain existing ratings. In the analysis undertaken, assumptions on probability of default 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 performing 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%, 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 that have been in arrears for longer being 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. The transaction is a cash flow securitization of loans to Spanish SMEs granted by Banco Espanol de Credito ('AA'/Rating Watch Negative/'F1+'). The issuer is legally represented and managed by Santander de Titulizacion SGFT, SA, a limited liability and special-purpose management company incorporated under Spanish law. PYMES BANESTO: S&P Downgrades Ratings Class C Notes to 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on the notes issued by Fondo de Titulizacion de Activos PYMES Banesto 2 and Empresas Banesto 1, Fondo de Titulizacion de Activos. Specifically, S&P: -- Lowered and kept on CreditWatch negative the class C notes issued by PYMES Banesto 2; -- Placed on CreditWatch negative PYMES Banesto 2's class A1, A2, and B notes and Empresas Banesto 1's class C and D notes; and -- Took no action on Empresas Banesto 1's other classes of notes, which remain unaffected. The collateral in these transactions comprises loans granted to Spanish small and midsize enterprises and originated by Banco Espa=F1ol de Cr=E9dito S.A. (Banesto; AA/Stable/A-1+). Empresas Banesto 1 S&P has placed Empresas Banesto 1's class C and D notes on CreditWatch negative following S&P's initial analysis of the deal's performance, which has highlighted factors that have increased the possibility of negative rating actions for these junior classes. According to the latest available investor report (December 2008), loans in arrears for more than 90 days have increased to 1.96% of the outstanding collateral or EUR24.3 million, up from 0.51% or EUR7.89 million in June 2008. In this deal, defaults are defined as loan in arrears for more than 12 months and the first default occurred during the last quarter. Gross cumulative defaults currently represent only 0.017% of the original outstanding balance. However, given the current economic environment, S&P expects defaults to increase in the near to medium term. The collateral has amortized to 62% of the original outstanding balance. S&P note that the top 10 obligors now represent 11.03% and the top 20 obligors 16.70%. These obligor concentrations are higher than in similar Spanish SME transactions, leaving the deal more vulnerable to single borrower defaults. S&P will now conduct a deeper analysis of the transaction requesting full loan-level data. PYMES Banesto 2 PYMES Banesto 2 closed in November 2006 and had a two-year revolving period that ended in December 2008. During this time, the issuer bought EUR695.5 million of new SME loans or about 70% of the original collateral balance. The new assets had to comply with certain criteria, including geographical and industry concentration limits. According to S&P's analysis of the data provided, since closing: -- Exposure to single borrowers remains negligible, with the top 10 borrowers representing less than 3% of the total outstanding balance; -- Geographical distribution has remained stable; -- Exposure to the real estate and construction sector has increased; and -- S&P note that the portfolio now includes loans granted to developers. S&P is currently reassessing the risk embedded in the portfolio, focusing on risks related to obligor concentrations, in particular real estate and construction sector exposures, and the concentration of loans granted for development, as well as risks related to loan prepayment profiles. Our initial credit and cash flow analysis of the most recent transaction information and loan-level data that S&P has received showed that the class C notes can no longer maintain their current rating and therefore S&P has lowered it to 'BB'. The results also showed that the probability of a negative rating action for all classes of notes has increased leading to the CreditWatch placements. S&P's cash flow analysis assumed that the EUR75.22 million principal proceeds available to the issuer as of the December investor report will be used to repay the class A notes at the next payment date. At the same time, the transaction remains exposed to potential deterioration in the collateral performance. Loans in arrears for more then 90 days had increased as of December 2008 to 1.37% of the outstanding collateral or EUR12.65 million, up from 0.87% or EUR8.69 million in June 2008. Gross cumulative defaults account for around EUR3 million, representing 0.18% of the total collateral balance including the new additions. S&P expects to resolve the CreditWatch placements after the next payment date when the transaction will start amortizing. Ratings List Rating Lowered and Kept on Creditwatch Negative Fondo de Titulizacion de Activos PYMES Banesto 2 EUR1 Billion Floating-Rate Notes Class To From ----- -- ---- C BB/Watch Neg BBB/Watch Neg Ratings Placed on Creditwatch Negative Fondo de Titulizacion de Activos PYMES Banesto 2 EUR1 Billion Floating-Rate Notes Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA B A/Watch Neg A Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Class To From ----- -- ---- C BBB-/Watch Neg BBB- D BB-/Watch Neg BB- Ratings Unaffected Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA B A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D S W E D E N =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D CONCORDIA BUS: S&P Puts 'B-' Rating on Developing CreditWatch ------------------------------------------------------------- Standard & Poor's Ratings Services said it placed its long-term 'B-' corporate credit ratings on Sweden-based bus service provider Concordia Bus AB and its subordinate holding company Concordia Bus Nordic Holding AB (collectively Concordia) on CreditWatch with developing implications. This is due to an expected announcement by Concordia in the coming weeks concerning the refinancing of its EUR130 million senior secured notes. "The CreditWatch placement was prompted by the material short-term refinancing risk arising from these notes and S&P's current uncertainty regarding the future capital structure of the business," said Standard & Poor's credit analyst Stuart Clements. "In the absence of new external funding, S&P does not believe Concordia has sufficient liquidity to repay these notes, which are due on July 31, 2009." S&P also believes that obtaining new external funding from the banking or debt capital markets would be difficult, given both markets' poor current liquidity. However, a successful refinancing of these notes with positive implications for the financial profile may lead us to consider a positive rating action. S&P also takes into consideration the strong correlation between Concordia's shareholders and note holders, who are both mainly large financial investors. Given Concordia's improved profitability and operating performance, S&P believes it would generally be in their interest to see Concordia remain a going concern and believe that for this reason, as well as the fact that cash flows have already been committed, they would probably play a supportive role in any re-financing plans. Concordia has put in a good operating performance for the nine months to Nov. 30, 2008, reporting a net increase in its contracts, increasing sales, improved market shares, better average cost indexation, and higher operating margins. S&P also understands that Concordia has been benefiting from a more benign competitive environment with more rational tender pricing as key competitors also focus on re-building profit margins, following the structural under-pricing of recent years. However, Concordia remains burdened by its heavily debt-biased capital structure, and its improved operating profit was offset by the first full-year effect of its requirement to pay out 16.5% dividends on its SEK 510 million nonredeemable preference shares. Key credit ratios for the rolling 12-months to Nov. 30, 2008, weakened slightly. This was due to the adverse effect on cash flows of the preference share dividend payments, as well as higher debt levels. The increased debt was driven by additional finance lease commitments, to fund buses for new contracts, and the adverse foreign-exchange translation effect on the senior notes from an appreciating euro against the Swedish krona. Compared with the same period the prior year, for the rolling 12-months to Nov. 30, 2008, funds from operations to adjusted debt reduced to 12.1% from 15.9%, although EBITDA to interest improved slightly to 1.5x from 1.3x. "The review will enable Standard & Poor's to evaluate the group's anticipated refinancing plans and their impact on Concordia's future financial risk profile, in particular its capital structure and cash flows," said Mr. Clements. "The group's underlying business risk profile is considered strong for the current rating, which remains constrained by the uncertainty surrounding the refinancing risk of the EUR130 million notes." A successful refinancing of these notes with positive implications for the financial profile may lead us to consider a positive rating action. Conversely, the absence of a refinancing announcement within the next two months, or a refinancing that in S&P's opinion results in a weakened financial risk profile may lead to the rating being lowered. GENERAL MOTORS: Rating Not Affected By Saab Filing, DBRS Says ------------------------------------------------------------- Dominion Bond Rating Service notes that Saab Automobile (Saab), a unit of General Motors Corporation, has filed for reorganization in its native Sweden. These developments follow previous unsuccessful efforts by GM to have the Swedish government assume an equity stake in Saab or provide some other form of assistance. DBRS notes that Saab's filing has no impact on the ratings of GM. The Saab unit has consistently incurred losses and is expected to continue to do so over the near term. However, Saab's scale is relatively minor, as its 2008 total sales of 93,000 units accounted for just over 1% of GM's global vehicle sales. Saab's reorganization filing represents an effort to ultimately create an independent entity. DBRS is of the opinion that this is likely modestly beneficial to GM, as it potentially removes a distraction from senior management of the Company and affords them more opportunity to focus on the continuing revitalization of the core GM brands and operations. In 2008, Saab, according to estimates, incurred a loss of approximately three billion Swedish kronor. The unit employs in the range of 4,400 people; the majority of production is sourced in Trollhattan, Sweden. GENERAL MOTORS: Saab Obtains Creditor Protection in Sweden ---------------------------------------------------------- Saab Automobile filed for protection from creditors after parent General Motors Corp. said it will cut ties with the Swedish carmaker following two decades of losses, Bloomberg News reported. Saab Chief Executive Officer Jan Aake Jonsson said in a statement that the Trollhaettan, Sweden-based Company filed for reorganization with a Swedish district court to separate itself from GM and bring resources back to Sweden. The reorganization, slated to take three months, will place Saab under court supervision, with the aim of creating a "fully independent" business entity, the report said. According to Benedikt Kammel of Bloomberg, the Swedish district court has approved Saab's request for reorganization, putting the Swedish carmaker under protection from creditors and under Swedish supervision for the first time since General Motors bought the carmaker two decades ago. GM Europe, Bloomberg relates, said in an e-emailed statement that Saab will promptly set up "a viable mechanism for the timely payment of suppliers' claims toward Saab". The Associated Press reported February 13 that Saab AB turned to a fourth-quarter loss, mainly hurt by charges taken for project delays, and warned it may have to cut more jobs going forward. Saab reported a loss of SEK724 million (US$86 million), compared with a previous profit of around SEK1 billion in the same quarter last year. The shortfall, according to the report, was mainly attributed to provisions and write-downs of just over SEK1.5 billion to account for delays in major projects. Andreas Cremer and Chris Reiter of Bloomberg said that General Motors' decision to push its Saab unit into bankruptcy protection puts pressure on Germany, the U.K. and Spain to come up with funding that the U.S. company says is needed to save the rest of its European business. Germany-based unit Opel needs a rescue package that may exceed EUR3.3 billion (US$4.23 billion), said its supervisory-board member Armin Schild. GM's Opel may be next `domino' after Saab, absent a rescue plan, Bloomberg said. About SAAB AB Saab AB is a Sweden-based technology company active within the defense, aviation and space industries. It operates through three principal segments. Defense and Security Solutions develops and manufactures command, control and communication systems. Systems and Products produces and sells systems, products and components for defense, aviation, space and civil security internationally. Aeronautics comprises both military and civilian aeronautics operations, including the Gripen program, which uses technology to perform air-to-air and air-to-surface operational missions. The Company consists of such business units as Saab Aerotech, Saab Communication, Saab Grintek, Saab Systems, Combitech, Saab Surveillance Systems, Saab Avitronics, Saab Barracuda, Saab Bofors Dynamics, Saab Space, Saab Training Systems, Saab Microwave Systems, Saab Underwater Systems, Saab Aerosystems, Saab Aerostructures, Saab Aircraft Leasing and Gripen International. Saab AB is headquartered in Stockholm, Sweden. 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. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D S W I T Z E R L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ALPINA IT-SOLUTIONS: Creditors Must File Claims by Feb. 28 ---------------------------------------------------------- Creditors owed money by LLC Alpina IT-Solutions are requested to file their proofs of claim by Feb. 28, 2009, to: Via Maistra 17 7524 Zuoz Switzerland The company is currently undergoing liquidation in Zuoz. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 5, 2009. ATIU JSC: Deadline to File Proofs of Claim Set Feb. 27 ------------------------------------------------------ Creditors owed money by JSC Atiu are requested to file their proofs of claim by Feb. 27, 2009, to: Dr. Urs Kammermann Liquidator Bellariastrasse 7 Mail Box: 8027 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. BACHER & SIEGER: Creditors Have Until Feb. 27 to File Claims ------------------------------------------------------------ Creditors owed money by JSC Bacher & Sieger are requested to file their proofs of claim by Feb. 27, 2009, to: Martin Hutte Liquidator Poststrasse 24 6301 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 19, 2008. FUNCTION BRANDS: Proof of Claim Filing Deadline is Feb. 27 ---------------------------------------------------------- Creditors owed money by JSC Function Brands are requested to file their proofs of claim by Feb. 27, 2009, to: Dr. Franz Sieberth Liquidator Wiesenrain 4 6314 Unterageri Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 18, 2008. KRYMIA JSC: Creditors' Proofs of Claim Due by Feb. 28 ----------------------------------------------------- Creditors owed money by JSC Krymia are requested to file their proofs of claim by Feb. 28, 2009, to: Herbert C. Schlaubitz Liquidator Baarerstrasse 38 6300 Zug Switzerland The company is currently undergoing liquidation in Risch. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 10, 2008. LUSEDA LLC: Feb. 27 Set as Deadline to File Claims -------------------------------------------------- Creditors owed money by LLC Luseda are requested to file their proofs of claim by Feb. 27, 2009, to: Robert Lowenberg Liquidator Wurzenbachstrasse 14 6006 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 3, 2008. PQM SERVICES: Creditors Must File Proofs of Claim by Feb. 27 ------------------------------------------------------------ Creditors owed money by LLC PQM Services are requested to file their proofs of claim by Feb. 27, 2009, to: Andreas Byland Bundesgasse 26 3001 Bern Switzerland The company is currently undergoing liquidation in Grossaffoltern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 15, 2008. SETAC LLC: Deadline to File Proofs of Claim Set Feb. 28 ------------------------------------------------------- Creditors owed money by LLC Setac are requested to file their proofs of claim by Feb. 28, 2009, to: Paul Schaad Beaumontweg 31 2502 Biel Switzerland The company is currently undergoing liquidation in Lengnau. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 26, 2008. TRANSLAND JSC: Creditors Have Until Feb. 28 to File Claims ---------------------------------------------------------- Creditors owed money by JSC Transland are requested to file their proofs of claim by Feb. 28, 2009, to: Willy Blattler Guggistrasse 7 6005 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 19, 2008. ZWAHLEN ABDICHTUNGEN: Proof of Claim Filing Deadline is Feb. 28 -------------------------------------------------------------- Creditors owed money by JSC Zwahlen Abdichtungen are requested to file their proofs of claim by Feb. 28, 2009, to: Austrasse 83 7000 Chur Switzerland The company is currently undergoing liquidation in Chur. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 23, 2008. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D U K R A I N E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D CENTER PROJECT: Creditors Must File Claims by March 7 ----------------------------------------------------- Creditors of LLC Center Project (EDRPOU 31838877) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 24/357-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Center Project Tupik Tverskoy St. 5-A Kiev Ukraine EKSIMPRO LLC: Creditors Must File Claims by March 7 --------------------------------------------------- Creditors of LLC EKSIMPRO (EDRPOU 34048307) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 28/299-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Eksimpro Patrice Lumumba St. 15-A Kiev Ukraine ENERGYHOLDING K LLC: Creditors Must File Claims by March 7 ---------------------------------------------------------- Creditors of LLC Company Energyholding K (EDRPOU 34047345) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 15/42-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Company Energyholding K Patrice Lumumba St. 15-A Kiev Ukraine ENERKOS LLC: Creditors Must File Claims by March 7 -------------------------------------------------- Creditors of LLC ENERKOS (EDRPOU 31089424) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 49/250-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Enerkos Frunze St. 41 Kiev Ukraine LAND-PLUS LLC: Creditors Must File Claims by March 7 ---------------------------------------------------- Creditors of LLC Land-Plus (EDRPOU 35430110) have until March 7, 2009, to submit proofs of claim to: Private enterprise Linkrust Insolvency Manager Liatoshynsky St. 4A/289 03191 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 23/3-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Land-Plus Ribalskaya St. 13 01011 Kiev Ukraine LIM-UKRAINE LLC: Creditors Must File Claims by March 7 ------------------------------------------------------ Creditors of LLC Production and Commerce Firm Lim-Ukraine (EDRPOU 30110821) have until March 7, 2009, to submit proofs of claim to the Insolvency Manager E. Golub. The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 23/307-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Production and Commerce Firm Lim-Ukraine Pervomaysky St. 11 01032 Kiev Ukraine PRESTIGE-GLOBAL-PLUS LLC: Creditors Must File Claims by March 7 --------------------------------------------------------------- Creditors of LLC PRESTIGE-GLOBAL-PLUS (EDRPOU 33101322) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 50/307. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Prestige-Global-Plus Grushevsky St. 28/2A Kiev Ukraine RUSSIA LLC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Economic Court of Kharkov has begun bankruptcy supervision procedure on LLC Russia (EDRPOU 30742959). The Temporary Insolvency Manager is: O. Berezhnoy Office 1 Tchaikovsky St. 33-b Kharkov Ukraine The Court is located at: The Economic Court of Kharkov Svoboda square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Russia Sadovaya St. 14 Chernoye Veliky Burluk Kharkov Ukraine STABILNOST LLC: Creditors Must File Claims by March 7 ---------------------------------------------------- Creditors of LLC Whole Sale And Trading Firm Stabilnost (EDRPOU 35430130) have until March 7, 2009, to submit proofs of claim to: LLC Production enterprise Prikarpatye Insolvency Manager Kikvidze St. 26 01103 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 23/2-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Whole Sale And Trading Firm Stabilnost Ribalskaya St. 13 01011 Kiev Ukraine TREVIKS LLC: Creditors Must File Claims by March 7 -------------------------------------------------- Creditors of LLC TREVIKS (EDRPOU 32916133) have until March 7, 2009, to submit proofs of claim to: Arbitral Manager E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev has begun bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 24/386-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Treviks Grushevsky St. 28/2A Kiev Ukraine * UKRAINE: Banks Refusing Credit to Farmers Get No Refinancing -------------------------------------------------------------- The Cabinet of Ministers in Ukraine will not supprt refinancing of those banks that refuse credit to farmers, Ukrainian News reported last week, citing Prime Minister Yulia Tymoshenko. Ukrainian News disclosed Ms. Tymoshenko in late January said that commercial banks did not prolong UAH3.2 billion of credits for agricultural enterprises. "If credits are not extended, we, as the government, will not support refinancing of any bank," Ukrainian News quoted Ms. Tymoshenko as saying. Ukrainian News recalled in November 2008, the prime minister said that the National Bank of Ukraine agreed to support through refinancing those banks that had extended credits to farmers until June 1, 2009. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D U N I T E D K I N G D O M =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D B J MALE: Appoints Joint Administrators from Grant Thornton ----------------------------------------------------------- Trevor O'Sullivan and Nigel Morrison of Grant Thornton UK LLP were appointed joint administrators of B J Male Holdings Ltd. on Feb. 11, 2009. The company can be reached at: B J Male Holdings Ltd. Unit 4 Ellis Square Manor Road Selsey Chichester West Sussex PO20 0AY England CASTLE HOLDCO 4: Completes Balance Sheet Restructuring Review ------------------------------------------------------------- Castle HoldCo 4 Ltd said in a statement on Monday, February 23, 2009, that the independent committee of the Board has, together with its financial adviser, completed its review of a proposed Scheme of Arrangement to restructure the Company's balance sheet. Following this review, the Independent Committee confirms it considers that, if implemented, the Scheme would create a stable and sustainable capital structure for the Company to address the significant market uncertainty currently facing it. Previous Announcement As previously announced on February 17, 2009, the Scheme would provide Countrywide with GBP75 million of fresh equity capital and would result in a substantial reduction of the indebtedness outstanding to GBP175 million, including the repayment in full of the Company's revolving credit facility and related hedging liabilities. The Scheme was proposed by a group of holders of Senior Secured Notes and Senior Notes, which has agreed to support the Scheme and to contribute the additional equity capital. The Company understands that the Scheme reflects the results of discussions among members of the Noteholder Group and a limited number of large holders of the Senior Secured Notes and Senior Notes identified by them and that based solely on these discussions, Noteholders representing approximately 57% of the total outstanding Senior Secured Notes and approximately 54% of the total outstanding Senior Notes have indicated support for the Scheme. The Independent Committee was formed by the Company's Board to consider the possible implementation of the Scheme and has been advised by Tri-Artisan Partners, an independent financial adviser. Filing of Scheme Following completion of its review of the Scheme, and given the significant support already demonstrated for the Scheme by holders of Senior Secured Notes and Senior Notes, the Company confirms that it expects the Scheme to be filed with the relevant court in March and completed during the second quarter. Advisors Slaughter and May and Tri-Artisan Partners are acting for the Company and Halliwells LLP are acting for the Independent Committee in connection with the Scheme. The holders of the Senior Secured Notes and Senior Notes are represented by Freshfields Bruckhaus Deringer LLP, Linklaters LLP and Wachtell, Lipton, Rosen & Katz and advised by Lazard & Co., Limited. In addition, Lucid Issuer Services Limited has been retained by the Noteholder Group as Information Agent in connection with the Scheme and will be liaising with Noteholders via the clearing systems in the coming days. Any Noteholders wishing to contact Lucid should contact Sunjeeve Patel in the first instance on + 44 (0) 207 704 0880 or email: castle@lucid-is.com About Countrywide Countrywide plc =96- http://www.countrywideplc.co.uk=96- provides estate agency services, surveying, financial services, commercial and residential lettings and residential property conveyancing in the UK. About Castle Holdco 4 Castle Holdco 4 Ltd. Is the ultimate holding company for Countrywide plc. * * * As reported in the TCR-Europe on Feb. 19, 2009, Moody's Investors Service placed on review for possible downgrade the Caa3 corporate family rating and probability of default rating of Castle Holdco 4 Ltd., which is the ultimate holding company for Countrywide plc, the provider of residential property services in the UK. Concurrently, Moody's also placed on review for possible downgrade the B2 rating of the GBP100 million revolving credit facility, the Caa3 rating on the GBP470 million Senior Secured notes, the Ca rating on the GBP170 million Senior Notes. The rating action follows an announcement from the company that it has deferred the coupon payment due on its Secured Senior Notes while it considers, during the 30-day grace period, a proposal for a scheme of arrangement from a group of note holders of its Senior Secured Notes and Senior Notes. The purpose of the scheme of arrangement is to reduce Countrywide's indebtedness and raise additional equity capital. CHRISTOPHER RODGERS: Put Into Administration; 30 Jobs Affected -------------------------------------------------------------- Natalie Holt at Mortgage Strategy reports that Christoper Rodgers has been placed into administration, resulting in the loss of 30 jobs. The report relates the Lancashire-based architect and suvery firm went into administration on Feb. 13. Grant Thornton UK has been appointed as administrators, the report discloses. David Riley, one of the joint administrators appointed to the case, as cited by the report said, "There were no realistic prospects for the firm to continue to trade. "Unfortunately the firm were fully drawn into its banking facilities and couldn't afford the January payroll." ENERGY BATTERIES: Names Joint Administrators from KPMG ------------------------------------------------------ Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of Energy Batteries Ltd. on Feb. 9, 2009. The company can be reached at: Energy Batteries Ltd. Energy Park Ealstrees Road Corby Northamptonshire NN17 4AZ England H20 LIFESTYLE: Brings In Joint Liquidators from Tenon Recovery -------------------------------------------------------------- Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of H20 Lifestyle (UK) Ltd. on Jan. 30, 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 LIQUID PORCELAIN: Appoints Joint Liquidators from Tenon Recovery ---------------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of The Liquid Porcelain Co. on Jan. 29, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England MCCARTHY & STONE: Reaches Debt-For-Equity Swap Deal With Banks -------------------------------------------------------------- Helia Ebrahimi at the Daily Telegraph reports that McCarthy & Stone plc agreed on a debt-for-equity swap with its senior lenders made up of a banking syndicate that includes 60 creditors and is led by HSBC and Lloyds Banking Group. In a Feb. 18 report, Reuters, citing sources close to the deal, disclosed that McCarthy & Stone's lending banks will cut debt to GBP500 from GBP700 million, but want to take all of the equity in the new company to help recover their investment. The Daily Telegraph relates following the agreement between the company and its senior lenders, lawyers have sent out lock-up agreements to the 60 creditors which binds them to the deal. According to the Daily Telegraph, some 75pc of senior leaders have to vote for the scheme, which needs court approval. The process is expected to be completed by the end of April, the Daily Telegraph notes. The Daily Telegraph recalls senior lenders rejected three bids for the company, including one led by the Reubens. Reuters states the proposals were turned down on the grounds that the investors would control the equity. Reuters recounts in 2006 a consortium led by David and Simon Reuben and Sir Tom Hunter acquired McCarthy & Stone for GBP1.1 billion. The GBP1.04 billion loan backing the acquisition included GBP890 million of senior debt and GBP150 million pounds of junior debt, split into GBP40 million of second lien and GBP110 million pounds of mezzanine, Reuters adds. According to the Daily Telegraph, the debt-for-equity swap will see the so-called mezzanine loans =96 made by the Reubens and Sir Tom =96 wiped out. The Guardian discloses junior lenders would lose about GBP200 million of second line (charge) and mezzanine debt holdings. The junior lenders are threatening to take senior lenders to court if they are offered nothing, Reuters states citing sources close to the deal. McCarthy & Stone, the Daily Telegraph relates, has struggled to pay interest on more than GBP900 million of borrowings that were used to finance its acquisition. Reuters discloses the company, which has been in talks since last August about renegotiating its buyout debt, reached a standstill agreement with lenders after missing a payment in December. Reuters notes it was unable to service its debt after the housing market slump. Headquartered in Bournemout, McCarthy & Stone plc =96- http://www.mccarthyandstone.co.uk-- McCarthy & Stone seeks land to develop into private retirement residences. The company buys sites formerly used as garages, pubs, cinemas, and offices, and then designs and constructs retirement flats throughout England and in Scotland. ROYAL BANK: To Split Company Based on GBP1 Bln Cost Cutting Plan ---------------------------------------------------------------- Royal Bank of Scotland Group Plc's planned GBP1 billion cost cutting measures partly involve scaling back its investment banking, Bloomberg News reports citing a person familiar with the situation. According to the news agency's source, RBS will split itself into two units over the next three to five years, with one entity including the U.K. and other "core" businesses and the second holding operations that aren=92t central to the bank. Bloomberg News relates the person, who declined to be identified because the planning is confidential, said the bank is also working to put about GBP200 billion of assets into a government insurance plan designed to protect lenders from potential losses. RBS, which last month said it may post a loss of as much as GBP28 billion for 2008, will withdraw from some countries in Asia and discontinue some product lines, the report discloses. Citing a report by the Sunday Telegraph, Bloomberg News says the non-core subsidiary will hold the Asian and Australian units RBS acquired as part of its purchase of ABN Amro NV, RBS=92s aircraft leasing unit, and the mortgage and lending assets of Charter One in the U.S. 20,000 More Job Cuts As reported in the Troubled Company Reporter-Europe on Feb. 19, 2009, The Sunday Times said RBS intends to cut a further 10,000 to 20,000 jobs as part of its cost-cutting measures. The Sunday Times recalled RBS already axed 13,000 jobs internationally since last April, including 3,000 in its investment-banking business. It announced 2,300 British job cuts early this month, the news agency added. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. SPOONER VICARS: Taps Joint Liquidators from Tenon Recovery ---------------------------------------------------------- Christopher Ratten and Jeremy Woodside of Tenon Recovery were appointed joint liquidators of Spooner Vicars Ltd. on Jan. 10, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: Spooner Vicars Ltd. Junction Lane Newton Le Willows Merseyside WA12 8DL England TATA MOTORS: Jaguar Land Rover Workers to Vote on Pay Freeze ----------------------------------------------------------- BBC News reports that Jaguar Land Rover, owned by India's Tata Motors Ltd, and union leaders agreed on a one-year pay freeze and a four-day week, in return for no compulsory job losses for two years. The report relates workers will vote on the deal, which will help the company save up to GBP70 million each year, within the coming weeks. "We have had a number of constructive meetings with the unions to reach this agreement," the report quoted a company spokesman as saying. "The unions recognize the severity of the situation and the need to take action to achieve further cost reductions while avoiding further redundancies." The report recalls in January the company cut 450 jobs amid an industry-wide fall in sales. The company, the report notes, has already held a a number of temporary work suspensions. As reported in the TCR-Europe on Jan. 21, 2009, citing BBC News, Jaguar halted work at its car plant in Castle Bromwich, Birmingham, for another two weeks following an extended three-week shutdown. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. THREE WAY: Appoints Joint Liquidators from Tenon Recovery --------------------------------------------------------- Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of Three Way Building Ltd. on Feb. 2, 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 VALE ST HUBERT: Taps Joint Administrators from PKF -------------------------------------------------- Brian James Hamblin and Stephen Paul Holgate of PKF (UK) LLP were appointed joint administrators of Vale St Hubert Ltd. on Feb. 10, 2009. The company can be reached at: Vale St Hubert Ltd. Unit 8 Lauriston Park Pitchill Evesham Worcestershire WR11 8SN England * Moody's Downgrades Ratings on 169 Notes by Certain CDO Deals -------------------------------------------------------------- Moody's Investors Service announced that it has downgraded its ratings of 169 notes issued by certain collateralized debt obligation transactions referencing a portfolio of corporate entities. Moody's explained that the rating actions taken are the result of (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology for Corporate Synthetic CDOs as described in Moody's Special Report below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (December 2008) The rating actions are: Arch One Finance Limited - Series 2006-3 -- EUR5,000,000 Secured Floating Rate Notes due September 2011, Downgraded to Ca; previously on 02 June 2008 Downgraded to Caa1 Arosa Funding Limited - Series 2004-7 -- Series 2004-7 Notes, Downgraded to Caa2; previously on 01 March 2007 Downgraded to A3 Arosa Funding Limited - Series 2004-10 -- Series 2004-10 Notes, Downgraded to Caa1; previously on 12 December 2008 Downgraded to Baa1 Aphex Capital Plc - Series No: 2005-15 -- EUR15,000,000 DESIGN Secured Portfolio Credit-Linked Leveraged Fixed Rate Notes due 2015, Downgraded to Aa1; previously on 16 November 2005 Assigned Aaa Aphex Capital Plc - Series 2005-16 -- Series 2005-16 EUR10,000,000 DESIGN Secured Portfolio Credit-Linked Fixed Rate Notes due 2012, Downgraded to Caa3; previously on 03 October 2008 Downgraded to B2 Betsen CDO Limited -- A, Downgraded to Baa2; previously on 22 December 2008 Downgraded to Aa2 -- B, Downgraded to Ba2; previously on 22 December 2008 Downgraded to A2 BNP Paribas, London Branch - Bifrost 4 -- Class A MZ 7 year, Downgraded to Aa2; previously on 31 March 2003 Assigned Aaa -- Class B MZ 7 year, Downgraded to Baa1; previously on 13 June 2006 Downgraded to Aa2 -- Class E MZ 10 year, Downgraded to A1; previously on 31 March 2003 Assigned Aaa -- Class F MZ 10 Year, Downgraded to Baa3; previously on 23 April 2008 Downgraded to Aa3 BNP Paribas, London Branch - Bifrost 5 -- Class B MZ 7 year, Downgraded to Aa3; previously on 06 May 2005 Upgraded to Aaa -- Class E MZ 10 year, Downgraded to Aa1; previously on 31 March 2003 Assigned Aaa -- Class F MZ 10 Year, Downgraded to A2; previously on 06 May 2005 Upgraded to Aaa BNP Paribas, London Branch - Bifrost 6 -- Class A MZ 7 year, Downgraded to Aa3; previously on 31 March 2003 Assigned Aaa -- Class B MZ 7 year, Downgraded to Baa3; previously on 28 November 2008 Downgraded to A3 -- Class E MZ 10 year, Downgraded to A3; previously on 28 November 2008 Downgraded to Aa2 -- Class F MZ 10 Year, Downgraded to Ba2; previously on 28 November 2008 Downgraded to Baa2 BNP Paribas, London Branch - Bifrost 7 -- Class A MZ 7 year, Downgraded to A2; previously on 31 March 2003 Assigned Aaa -- Class B MZ 7 year, Downgraded to Ba2; previously on 16 January 2009 Downgraded to A2 -- Class E MZ 10 year, Downgraded to Baa2; previously on 16 January 2009 Downgraded to Aa1 -- Class F MZ 10 Year, Downgraded to B1; previously on 16 January 2009 Downgraded to A3 BNP Paribas, London Branch - Bifrost Legolas 1 -- Class A MZ 7 year, Downgraded to Aa3; previously on 31 March 2003 Assigned Aaa -- Class B MZ 7 year, Downgraded to Baa3; previously on 28 November 2008 Downgraded to A1 -- Class E MZ 10 year, Downgraded to A3; previously on 31 March 2003 Assigned Aaa -- Class F MZ 10 Year, Downgraded to Ba2; previously on 28 November 2008 Downgraded to A2 BNP Paribas, London Branch - Bifrost Legolas 2 -- Class B MZ 7 year, Downgraded to A2; previously on 06 May 2005 Upgraded to Aaa -- Class E MZ 10 year, Downgraded to Aa2; previously on 31 March 2003 Assigned Aaa -- Class F MZ 10 Year, Downgraded to Baa1; previously on 10 March 2008 Upgraded to Aaa BNP Paribas, London Branch - Bifrost Legolas 3 -- Class A MZ 7 year, Downgraded to Aa1; previously on 06 May 2005 Upgraded to Aaa -- Class B MZ 7 year, Downgraded to A3; previously on 09 August 2006 Upgraded to Aa3 -- Class E MZ 10 year, Downgraded to A1; previously on 06 May 2005 Upgraded to Aaa -- Class F MZ 10 Year, Downgraded to Baa3; previously on 08 June 2007 Downgraded to A1 BNP Paribas, London Branch - Bifrost Investment Plc series 11 to 20 -- 10A 11, Downgraded to Baa1; previously on 14 October 2003 Assigned Aaa -- 10A 12, Downgraded to Aa3; previously on 14 October 2003 Assigned Aaa -- 10A 13, Downgraded to A1; previously on 14 October 2003 Assigned Aaa -- 10A 14, Downgraded to Aa2; previously on 14 October 2003 Assigned Aaa -- 10A 15, Downgraded to Aa2; previously on 14 October 2003 Assigned Aaa -- 10A 16, Downgraded to Baa2; previously on 14 October 2003 Assigned Aaa -- 10A 17, Downgraded to Aa3; previously on 14 October 2003 Assigned Aaa -- 10A 18, Downgraded to A2; previously on 14 October 2003 Assigned Aaa -- 10A 19, Downgraded to A3; previously on 14 October 2003 Assigned Aaa -- 10A 20, Downgraded to Aa2; previously on 14 October 2003 Assigned Aaa -- 10B 11, Downgraded to Ba3; previously on 07 February 2007 Downgraded to Aa3 -- 10B 12, Downgraded to Baa2; previously on 08 August 2008 Downgraded to Aa2 -- 10B 13, Downgraded to Baa2; previously on 07 February 2007 Downgraded to Aa3 -- 10B 14, Downgraded to Baa1; previously on 07 February 2007 Upgraded to Aa1 -- 10B 15, Downgraded to Baa1; previously on 07 February 2007 Upgraded to Aa1 -- 10B 16, Downgraded to B1; previously on 08 August 2008 Downgraded to A1 -- 10B 17, Downgraded to Baa3; previously on 23 April 2008 Upgraded to Aa2 -- 10B 18, Downgraded to Ba1; previously on 08 August 2008 Downgraded to Aa3 -- 10B 19, Downgraded to Ba3; previously on 08 August 2008 Downgraded to A1 -- 10B 20, Downgraded to A3; previously on 14 October 2003 Assigned Aa2 -- 10C 11, Downgraded to Caa2; previously on 07 February 2007 Downgraded to Baa2 -- 10C 12, Downgraded to Ba3; previously on 08 August 2008 Downgraded to Baa1 -- 10C 13, Downgraded to Ba3; previously on 07 February 2007 Downgraded to Baa2 -- 10C 14, Downgraded to Ba2; previously on 23 April 2008 Downgraded to A2 -- 10C 15, Downgraded to Ba2; previously on 29 June 2007 Upgraded to Aa3 -- 10C 16, Downgraded to Caa2; previously on 23 April 2008 Downgraded to Baa2 -- 10C 17, Downgraded to B1; previously on 23 April 2008 Upgraded to A3 -- 10C 18, Downgraded to B3; previously on 08 August 2008 Downgraded to Baa1 -- 10C 19, Downgraded to Caa2; previously on 08 August 2008 Downgraded to Baa2 -- 10C 20, Downgraded to Ba1; previously on 08 August 2008 Upgraded to A2 -- 10D 11, Downgraded to Caa3; previously on 07 February 2007 Downgraded to Ba2 -- 10D 12, Downgraded to Caa1; previously on 08 August 2008 Downgraded to Ba1 -- 10D 13, Downgraded to Caa1; previously on 07 February 2007 Downgraded to Ba2 -- 10D 14, Downgraded to B3; previously on 23 April 2008 Downgraded to Baa3 -- 10D 15, Downgraded to B2; previously on 07 February 2007 Upgraded to Baa1 -- 10D 16, Downgraded to Caa3; previously on 08 August 2008 Downgraded to Ba2 -- 10D 17, Downgraded to Caa1; previously on 16 February 2007 Downgraded to Ba1 -- 10D 18, Downgraded to Caa3; previously on 08 August 2008 Downgraded to Ba1 -- 10D 19, Downgraded to Caa3; previously on 08 August 2008 Downgraded to Ba2 -- 10D 20, Downgraded to Ba3; previously on 16 February 2007 Downgraded to Baa3 -- 7A 11, Downgraded to A2; previously on 14 October 2003 Assigned Aaa -- 7A 12, Downgraded to Aa1; previously on 14 October 2003 Assigned Aaa -- 7A 13, Downgraded to Aa1; previously on 14 October 2003 Assigned Aaa -- 7A 14, Downgraded to Aa1; previously on 14 October 2003 Assigned Aaa -- 7A 15, Downgraded to Aa1; previously on 14 October 2003 Assigned Aaa -- 7A 16, Downgraded to A3; previously on 14 October 2003 Assigned Aaa -- 7A 17, Downgraded to Aa1; previously on 14 October 2003 Assigned Aaa -- 7A 18, Downgraded to Aa3; previously on 14 October 2003 Assigned Aaa -- 7A 19, Downgraded to Aa3; previously on 14 October 2003 Assigned Aaa -- 7B 11, Downgraded to Ba1; previously on 14 October 2003 Assigned Aa2 -- 7B 12, Downgraded to A3; previously on 29 June 2007 Upgraded to Aa1 -- 7B 13, Downgraded to A2; previously on 23 April 2008 Upgraded to Aa2 -- 7B 14, Downgraded to A1; previously on 07 February 2007 Upgraded to Aaa -- 7B 15, Downgraded to A1; previously on 07 February 2007 Upgraded to Aaa -- 7B 16, Downgraded to Ba3; previously on 08 August 2008 Downgraded to Aa3 -- 7B 17, Downgraded to A3; previously on 23 April 2008 Upgraded to Aa1 -- 7B 18, Downgraded to Baa2; previously on 16 February 2007 Upgraded to Aa1 -- 7B 19, Downgraded to Baa3; previously on 14 October 2003 Assigned Aa2 -- 7B 20, Downgraded to Aa3; previously on 23 April 2008 Upgraded to Aaa -- 7C 11, Downgraded to B3; previously on 23 April 2008 Upgraded to A3 -- 7C 12, Downgraded to Ba1; previously on 19 December 2008 Downgraded to A3 -- 7C 13, Downgraded to Baa3; previously on 23 April 2008 Upgraded to A3 -- 7C 14, Downgraded to Baa3; previously on 07 February 2007 Upgraded to Aa3 -- 7C 15, Downgraded to Baa2; previously on 29 June 2007 Upgraded to Aa2 -- 7C 16, Downgraded to Caa2; previously on 23 April 2008 Downgraded to Baa1 -- 7C 17, Downgraded to Ba1; previously on 19 December 2008 Downgraded to A3 -- 7C 18, Downgraded to Ba3; previously on 16 February 2007 Upgraded to A1 -- 7C 19, Downgraded to B3; previously on 08 August 2008 Downgraded to Baa1 -- 7C 20, Downgraded to A3; previously on 23 April 2008 Upgraded to Aa3 -- 7D 11, Downgraded to Caa3; previously on 23 April 2008 Upgraded to Baa3 -- 7D 12, Downgraded to B1; previously on 07 February 2007 Downgraded to Baa3 -- 7D 13, Downgraded to Ba3; previously on 07 February 2007 Downgraded to Ba1 -- 7D 14, Downgraded to Ba3; previously on 29 June 2007 Upgraded to A3 -- 7D 15, Downgraded to Ba2; previously on 29 June 2007 Upgraded to A2 -- 7D 16, Downgraded to Caa3; previously on 23 April 2008 Downgraded to Ba1 -- 7D 17, Downgraded to B2; previously on 23 April 2008 Upgraded to Baa2 -- 7D 18, Downgraded to Caa1; previously on 23 April 2008 Downgraded to Baa2 -- 7D 19, Downgraded to Caa3; previously on 08 August 2008 Downgraded to Ba1 -- 7D 20, Downgraded to Baa3; previously on 23 April 2008 Upgraded to Baa1 Citigroup Global Markets Limited - Cayenne Court 2004-1 -- Credit Default Swap - Cayenne 2004-1, Downgraded to Ba1; previously on 19 March 2004 Assigned Aa2 Citigroup Global Markets Limited - St Catherine 2004-1 -- Credit Default Swap - St Catherine 2004-1 CDO^2, Downgraded to Ba2; previously on 19 March 2004 Assigned Aa2 Classic Finance B.V. Series 2004-1 -- EUR125,000,000 Class A Secured Floating Rate Notes, Series 2004-1A, Downgraded to Ba2; previously on 19 November 2008 Downgraded to Baa1 -- EUR25,000,000 Class B Secured Floating Rate Notes, Series 2004-1B, Downgraded to B1; previously on 19 November 2008 Downgraded to Baa2 Corsair Finance (Ireland) No. 2 Limited - Series 12 -- EUR125,000,000 Senior Secured Floating Rate Note due 25 September 2009, Downgraded to A3; previously on 04 November 2004 Assigned Aa1 -- EUR6,600,000 Subordinated Secured Floating Rate Notes due 25 September 2009, Downgraded to A3; previously on 11 March 2008 Upgraded to Aa1 Corsair (Jersey) No. 3 Limited Series 13 -- Corsair (Jersey) No. 3 Limited - Series 13, Downgraded to Ca; previously on 20 November 2008 Downgraded to B3 -- Corsair Finance (Ireland) No. 2 Limited - Series 13 -- Series 13 Floating Rate Secured Portfolio Credit -Linked Notes, Downgraded to A1; previously on 10 May 2007 Upgraded to Aaa Corsair (Jersey) No. 4 Limited - Series 2 -- Series 2 US$150,000,000 Floating Rate Step-down Secured Portfolio Credit-linked Notes due 2021, Downgraded to Ba2; previously on 30 July 2008 Downgraded to A3 Eirles Two Limited - Series 228 -- Series 228 Floating Rate Portfolio Credit Linked Secured Notes, Downgraded to Baa2; previously on 01 March 2006 Assigned Aaa Emilius Company Limited -- Credit Linked Notes Due 3 December 2011, Downgraded to B2; previously on 29 September 2008 Downgraded to Baa2 Heather Finance Limited Series 2002-2 -- Series 2002-2 Secured Credit-Linked Floating Rate Notes due 2009, Downgraded to A1; previously on 15 August 2007 Upgraded to Aaa Heather Finance Limited Series 2002-3 -- Series 2002-3 Secured Credit-Linked Floating Rate Notes, Downgraded to Baa3; previously on 15 August 2007 Upgraded to A2 Heather Finance Limited Series 2002-7 -- Series 2002-7 Secured Credit-Linked Floating Rate Notes due 2009, Downgraded to A1; previously on 15 August 2007 Upgraded to Aaa Heather Finance Limited Series 2004-5 -- Class A, Downgraded to B3; previously on 28 November 2008 Downgraded to Aa3 -- Class B, Downgraded to B2; previously on 28 November 2008 Downgraded to Aa3 Heather Finance Limited - Series 2004-6 -- Series 2004-6 Secured Credit-Linked Floating Rate Notes, Downgraded to Ca; previously on 26 September 2007 Downgraded to Ba2 Heather Finance Limited Series 2004-12 -- Class A1 Secured Credit-Linked Fixed Rate Note, Downgraded to Baa3; previously on 13 July 2004 Assigned Aaa -- Class A2 Secured Credit-Linked Floating Rate Notes, Downgraded to Baa3; previously on 13 July 2004 Assigned Aaa HSBC Bank plc/USA Five Leveraged Super Senior CDS maturing 20th September 2010 -- US$10,000,000 HSBC Bank plc Swap with K2 Corporation number 100278, Downgraded to A3; previously on 25 August 2005 Assigned Aaa -- US$20,000,000 HSBC Bank plc Swap with K2 Corporation 100277, Downgraded to A3; previously on 25 August 2005 Assigned Aaa -- US$20,000,000 HSBC Bank plc Swap with K2 Corporation number 98681, Downgraded to A3; previously on 25 August 2005 Assigned Aaa -- US$20,000,000 HSBC Bank USA Swap with Desjardins Financial Security Life Assurance Co number 94738, Downgraded to A3; previously on 25 August 2005 Assigned Aaa -- US$50,000,000 HSBC Bank plc Swap with K2 Corporation number 98377, Downgraded to A3; previously on 25 August 2005 Assigned Aaa iBond Securities PLC: iBoxx Series 4A / 4B / 4C -- Series 4A - iBoxx 100 CLN, Downgraded to B3; previously on 25 April 2008 Downgraded to Baa3 -- Series 4B - iBoxx Corp CLN, Downgraded to Caa1; previously on 12 August 2008 Downgraded to Ba1 -- Series 4C iBoxx Diversified CLN, Downgraded to Ba1; previously on 01 March 2007 Downgraded to Baa3 Ixis Structured Products Limited - Champommi CDO -- Class A2, Downgraded to Ba2; previously on 04 November 2008 Downgraded to Ba1 IXIS Corporate & Investment Bank, Series 2430 Tranche N=B01 (Raphael) -- Series 2430 Tranche N=B01 (Raphael), Downgraded to Ba2; previously on 28 September 2006 Assigned Aaa Kalmar Structured Finance A/S Secured Notes II due 2010 -- Class A Secured Fixed Rate Notes due 2010, Downgraded to Ba3; previously on 23 October 2008 Downgraded to Baa1 -- Class B1 Secured Floating Rate Notes due 2010, Downgraded to B3; previously on 23 October 2008 Downgraded to Ba1 -- Class B2 Secured Floating Rate Notes due 2010, Downgraded to B3; previously on 23 October 2008 Downgraded to Ba1 -- Class C Secured Floating Rate Notes due 2010, Downgraded to Caa3; previously on 23 October 2008 Downgraded to B2 Kalmar Structured Finance A/S - Secured Notes III -- Class A1 Secured Notes III due 2011, Downgraded to Ba3; previously on 17 November 2008 Downgraded to Baa1 -- Class A2 Secured Notes III due 2011, Downgraded to Ba3; previously on 17 November 2008 Downgraded to Baa1 -- Class B1 Secured Notes III due 2011, Downgraded to Caa1; previously on 17 November 2008 Downgraded to Ba2 -- Class B2 Secured Notes III due 2011, Downgraded to Caa1; previously on 17 November 2008 Downgraded to Ba2 -- Class C Secured Notes III due 2011, Downgraded to Caa3; previously on 17 November 2008 Downgraded to Caa1 Kalmar Structured Finance A/S - Principal Rated Credit-Linked Notes IV due 2013 -- Principal Rated Credit-Linked Notes IV due 2013, Downgraded to Ca; previously on 02 April 2008 Downgraded to Baa3 Magnolia Finance IV Plc series 2007-01 -- Series 2007-01 Credit Linked Notes due September 2012, Downgraded to B1; previously on 11 September 2007 Assigned Aaa Merrill Lynch International Credit Default Swaps (Shamrock) -- EUR50,000,000 Shamrock Class 1 (Reference N=B0 06ML19662A), Downgraded to A2; previously on 29 September 2008 Downgraded to Aa1 Mondriaan Limited - Series 1 -- Series 1 Limited Recourse Secured Credit-Linked Notes due 2010, Downgraded to Aa1; previously on 21 December 2005 Assigned Aaa SEA CDO Limited 2004-3 "Grande II" -- Secured Floating Rate "Grande II" Notes due 2014, Downgraded to B1; previously on 07 April 2008 Downgraded to Aa3 SEA CDO LIMITED Series 2004-4 to 6 "Grande III", "Grande IV" & "Grande V" -- SEA CDO 2004-4 DKK90,000,000 Secured Floating Rate Notes due 25 September 2009, Downgraded to A3; previously on 11 August 2004 Assigned Aaa -- SEA CDO 2004-5 SGD20,000,000 Secured Floating Rate Tranche A Notes due 25 September 2009, Downgraded to A3; previously on 11 August 2004 Assigned Aaa -- SEA CDO 2004-5 SGD20,000,000 Secured Floating Rate Tranche B Notes due 25 September 2009, Downgraded to Baa2; previously on 11 August 2004 Assigned Aa1 -- SEA CDO 2004-6 US$20,000,000 Secured Floating Rate Notes due 25 September 2009, Downgraded to A3; previously on 11 August 2004 Assigned Aaa Skylark Limited Series 2004-10 Tannebaum -- Class A Series 2004-10A, Downgraded to Aa1; previously on 15 September 2004 Assigned Aaa -- Class B Series 2004-10B, Downgraded to A3; previously on 15 September 2004 Assigned Aa2 Skylark Limited Series 2004-4 (US$ Rhodes) -- US$50,000,000 Class A1 "Rhodes" Secured Floating Rate Credit Linked Notes, Downgraded to Baa2; previously on 17 April 2008 Downgraded to Aa1 STARTS (Cayman) Limited Series 2005-3 EUR30,000,000 Leveraged Super Senior -- STARTS (Cayman) Limited Series 2005-3 EUR30,000,000 Leveraged Super Senior Credit-Linked Notes due 2012, Downgraded to Baa3; previously on 17 April 2008 Downgraded to Aa1 STARTS (Cayman) Limited Series 2005-4 -- Series 2005-4 US$20,000,000 Leveraged Super Senior Credit- Linked Notes due 2010, Downgraded to Ba2; previously on 18 December 2008 Downgraded to A2 STARTS (Cayman) Limited Series 2005-6 -- Series 2005-6 US$25,000,000 Leveraged Super Senior Credit- Linked Notes due 2010, Downgraded to Ba3; previously on 17 April 2008 Downgraded to Aa2 Starts (Ireland) plc Series 2005-22 - Leveraged TIGERS 2005-VIII STARTS (Ireland) plc Series 2005-22 US$20,000,000 Leveraged Super -- Senior Credit-Linked Notes due 2012, Downgraded to Baa3; previously on 16 September 2005 Assigned Aaa Starts (Ireland) plc Series 2005-23 - Leveraged TIGERS 2005-VIII -- STARTS (Ireland) plc Series 2005-23 EUR30,000,000 Leveraged Super Senior Credit-Linked Notes due 2012, Downgraded to Ba1; previously on 17 April 2008 Downgraded to Aa2 Starts (Ireland) plc Series 2005-25 - Leveraged TIGERS 2005-VIII -- STARTS (Ireland) plc Series 2005-25 US$15,000,000 Leveraged Super Senior Credit-Linked Notes due 2010, Downgraded to Ba1; previously on 13 October 2005 Assigned Aaa XELO IV plc - Series 2006 (PAVON I) -- Xelo IV - Series 2006 (Pavon I), Downgraded to Ca; previously on 03 October 2008 Downgraded to Ba2 * EUROPE: Economist Warns "More Severe" Banking Problem ------------------------------------------------------- Losses in Europe's emerging markets and the global financial crisis are increasing the risks the region's banking system is facing, Bloomberg News reports citing New York University economist Nouriel Roubini. The report relates the continent=92s largest financial companies have reported US$316 billion in writedowns and credit-related losses since the collapse of the U.S. subprime mortgage market in 2007 spread to other asset classes and continents. Citing Bloomberg data, the report adds the market turmoil has forced European lenders to raise US$370 billion in fresh capital and government-led bailouts from London to Zurich to Berlin. "The banking problem in Europe is becoming more severe," the report quoted Mr. Roubini as saying during a Bloomberg Television interview. "You have a series of countries that are really in trouble," he said, citing Latvia, Estonia, Lithuania, Hungary, Belarus and Ukraine. * EUROPE: World Bank Sees Deteriorating EU10 Economy in 2009 ------------------------------------------------------------ The World Bank urged European countries to protect the hard-earned gains in boosting economic growth and fighting poverty that were made in Eastern Europe during the past two decades, gains that now are at risk during the global economic downturn. "Eastern Europe is being hit especially hard in these trying times," said Indermit Gill, World Bank Europe and Central Asia Chief Economist, who made his comments at a launch of the latest World Bank EU10 Regular Economic Report in Warsaw, Poland. "In choosing EU membership, the EU10 countries committed themselves to openness and integration into the global economy. This path has paid dividends=97spurring economic growth and reducing poverty. If the world turns protectionist, developing countries will find it difficult to protect these hard-won gains. Fiscal stimulus programs in industrialized countries should be used to encourage production in ways that are broadly efficient, not narrowly nationalistic. During times of economic crisis, growing protectionism may be the greatest danger to economic recovery." The prospects for economic growth in the EU10 countries in 2009 continue to weaken=97says the EU10 Regular Economic Report of the World Bank. The prospects for global recovery, for private capital flows, and for growth in the EU10 continue to deteriorate. Forecasts are subject to very high degrees of uncertainty, mostly on the downside. The EU10 economies face the challenges of a dearth of international liquidity, exposure to vulnerable banks, and collapsing export markets. The impact will now be felt strongly in the real economy as defaults spread and foreclosures creep up, and as unemployment rises sharply. The EU10 Regular Economic Report's Special Topic: Reshaping Economic Geography concludes that the ongoing crisis should spur deeper European integration, rather than a return to the nationalism of the past. Taking a long-term view informed by the World Bank=92s flagship World Development Report 2009, it recommends continued efforts to: --- Make economic borders 'thinner' =96 EU15 governments should resist temptations for protectionist policies that make their borders 'thicker' as they design economic stimulus programs; --- Welcome rising economic density =96 spatial concentration is an integral element of strategies for growth and competitiveness; --- Deepen institutional convergence =96 EU10 countries should continue efforts to harmonize financial and employment regulations, foster a sound macroeconomic environment, simplify customs regulations and rules of origin, and improve domestic governance. "With the recent past in mind, it seems probable that 2009 will be a difficult year," said Erika Jorgensen, World Bank Europe and Central Asia Economic Adviser and the author of the Report. "The global integration of finance, production, and labor was a good thing, although now, looking back, it is easier to see the dangerous buildup of vulnerabilities that came from, for example, mortgages in foreign currency with floating interest rates. With little or no room for fiscal stimulus, governments will need to focus on other measures to stabilize the financial sector and on better quality of spending to deliver core services and provide safety nets to the most vulnerable." The EU10 Regular Economic Report analyses stages of the crisis faced by different EU10 countries in four major areas: 1) External financing risks in the banking sector; 2) Interbank markets and spillover from the global crisis; 3) Domestic credit developments; 4) Fiscal policy as a stabilization mechanism. As the international economic crisis continues to unfold, spreading from financial markets into the real economy, the EU10 economies find themselves especially vulnerable. External demand has collapsed, driven by recession in the region's main trading partners. Foreign capital inflows to the EU10 states have dropped off, especially intrabank lending and foreign borrowing by companies. A credit crunch within the EU10 has further undermined production, as banks weather a crisis of confidence of lending to each other and to the private sector. "Compared with emerging markets in East Asia and Latin America, EU new member states entered the crisis weak=97with high public debt ratios, low foreign exchange reserves, rigid exchange rate regimes, and banks that depended more on foreign savings than domestic deposits," said Mr. Gill. The successful EU10 integration with the EU and globally, although differentiated across the 10 countries, has brought major benefits, including rapid convergence in incomes, improvements in living standards, and a sharp decline in poverty rates. But the easy flow of credit that made this possible was mirrored in rising private sector debt, growing exposure to foreign exchange risks, and easily-financed large current account deficits. The unprecedented series of external shocks have now revealed the financial sector in the EU10 as even more volatile than those in more advanced economies, while the extreme export dependence of some of the EU10, while supportive of high growth in the past, is now pulling the economies downward. "Among the EU new member states, Poland is in better fiscal and financial shape," said Thomas Laursen, World Bank Country Manager for Poland and the Baltic Countries. "Poland is affected by the ongoing crisis through the impact of falling external demand on Polish exports, a slowdown of credit activity, and lower FDI inflows. Nonetheless, compared with the rest of the region, Poland demonstrates more balanced growth and, with private consumption as the main driver, a positive GDP growth of up to 2 percent in 2009 is within reach. The Government remains committed to fiscal discipline, while exploring ways to cushion the effects of the crisis on the poor." The EU10 countries include: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. ********* 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 * * *