/raid1/www/Hosts/bankrupt/TCREUR_Public/090310.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
Tuesday, March 10, 2009, Vol. 10, No. 48
Headlines
B E L G I U M
FORTIS NV: Agrees to Second Revision of Carve-Up Agreement
FORTIS NV: Fortis Bank Forecast EUR6 Billion 4th Qtr Loss
B U L G A R I A
CEZ: Price Cut of More Than BGN2/MwH Could Lead to Insolvency
F R A N C E
NATIXIS: Moody's Affirms Financial Strength Rating at 'D+'
G E R M A N Y
BEVERAGE PACKAGING: Moody's Gives Neg. Outlook; Holds 'B1' Rating
CONDOR IMMOBILIEN: Claims Registration Period Ends April 6
CONTINENTAL AG: Board Chairman Quits Post on Schaeffler Dispute
EXKLUSIV HANDY: Claims Registration Period Ends April 2
FUNDO WHEELS: Claims Registration Period Ends April 1
GENERAL MOTORS: Republican Lawmakers Want Federal Aid Stopped
GENERAL MOTORS: Seeks Wellensiek's Advice on Opel's Reorganization
GENERAL MOTORS: Opel Should Consider Insolvency Over State Aid
HEIDELBERGCEMENT AG: S&P Cuts L-T Corp. Credit Rating to 'B-'
HYPO REAL ESTATE HOLDING: FM Says 75% Gov't Stake Will Save Firm
KUTURA FASHION: Claims Registration Period Ends April 3
PHOENIX BAUGESELLSCHAFT: Claims Registration Period Ends April 4
PREPS SERIES: Fitch Junks Ratings on Four Classes of Notes
SOCIAL-INTERFACE GMBH: Claims Registration Period Ends April 5
I C E L A N D
* ICELAND: Slipped Into Recession in Fourth Quarter of 2008
I R E L A N D
BRIDDOCK O'SULLIVAN: Goes Into Voluntary Liquidation
G&L PROPERTY: ACC Agrees to Provide Loan Under Rescue Plan
MASTERCHEFS: Creditors Set to Vote on Rescue Plan
XANCON: On the Brink of Liquidation
I T A L Y
BANCA ITALEASE: Shareholders Discuss Plan to Delist Company
IT HOLDING: Luxembourg Bourse Suspends Trading of Sr. Notes 2012
UNIONFIDI PIEMONTE: Fitch Downgrades Long-Term IDR to 'BB'
K A Z A K H S T A N
ECONDA LLP: Creditors Must File Claims by April 10
DESIGN COMPLECT: Creditors Must File Claims by April 10
FORUM OIL: Creditors Must File Claims by April 10
GRAND TABRIYA: Creditors Must File Claims by April 10
GULNUR LLP: Creditors Must File Claims by April 10
KOSTA-NAI LLP: Creditors Must File Claims by April 10
KUANYSH LLP: Creditors Must File Claims by April 10
NIRVANA TOUR: Creditors Must File Claims by April 10
SVYAZ COMPLECT: Creditors Must File Claims by April 10
VENTURA-AN LLP: Creditors Must File Claims by April 10
K Y R G Y Z S T A N
KAZ-INVEST LLC: Creditors Must File Claims by March 20
N E T H E R L A N D S
LYONDELL CHEMICAL: Judge Says BASF Can't Pull Out of Buyout
P O L A N D
POLSKA GRUPA: Fitch Puts 'BB' National Rating on Negative Watch
R U S S I A
GAZPROMBANK: Moody's Junks Ratings on Class B and C Notes
INDUSTRIAL OIL: Creditors Must File Claims by April 28
KAMYSHINSKIY COTTON: Creditors Must File Claims by March 29
KHABAROVSK GRAIN: Creditors Must File Claims by March 29
LARSEN-SERVIS LLC: Kamchatskiy Bankruptcy Hearing Set July 21
MAS-PROM LLC: Creditors Must File Claims by April 28
MEGAPOLIS –STROY LLC: Creditors Must File Claims by March 29
NORD COMPANY LLC: Creditors Must File Claims by April 28
ORIMEK-SUVAR LLC: Tatarstan Bankruptcy Hearing Set June 25
SPAS-STROY LLC: Creditors Must File Claims by March 29
TROIKA DIALOG: Africa's Standard Bank to Acquire 33% Stake
TRUST A 3: Creditors Must File Claims by April 28
UC RUSAL: Gets 2-Month Reprieve on US$14 Bln Debt
S P A I N
CABLEUROPA SA: Fitch Cuts Long-Term Issuer Default Rating to 'B'
UCI 19: S&P Assigns 'CCC-' Rating on Class E Notes
S W I T Z E R L A N D
AWAC ELEKTRONIK: Creditors Must File Proofs of Claim by March 16
FAHRSCHULE BICHSEL: Creditors Have Until March 31 to File Claims
KIRTU LLC: Deadline to File Proofs of Claim Set March 26
NETZTELESERVICES LLC: Deadline to File Claim is on March 23
RESTAURANT FREIHOF: Creditors' Proofs of Claim Due by June 25
UBS AG: Moody's Downgrades Ratings on US$10 Mil. Notes to 'Caa2'
WETEGE LLC: March 17 Set as Deadline to File Claims
U K R A I N E
ALPHA BUILDING: Creditors Must File Claims by March 21
COMPANY INDUSTRIAL: Creditors Must File Claims by March 20
HETMAN LLC: Creditors Must File Claims by March 20
IKAR-AGRO LLC: Creditors Must File Claims by March 21
INSTRUMENTAL LLC: Creditors Must File Claims by March 21
PRODIVILANCE-T LLC: Creditors Must File Claims by March 21
SEEDS KOLOS: Creditors Must File Claims by March 20
SODRUZHESTVO CJSC: Creditors Must File Claims by March 21
VERSTATOLIV LLC: Court Starts Bankruptcy Supervision Procedure
U N I T E D K I N G D O M
AURORA FASHIONS: In Talks with Retail Landlords
B&P LIGHTBRIGADE: Goes Into Administration; Buyer Sought
BANK OF AMERICA: Merrill Lynch Discovers Irregularity in Trading
BRITISH AIRWAYS: S&P Cuts Corporate Credit Rating to 'BB+'
CATER RECON: Appoints Joint Liquidators from Tenon Recovery
CLARIS LTD: S&P Raises Ratings on EUR50 Mil. Notes from 'CCC'
CLERICAL MEDICAL: S&P Cuts Ratings on Jr. Sub. Debt to 'BB+'
ELITE BAKERY: Brings in Joint Liquidators from Tenon Recovery
FAIRWAY CONTRACTING: Taps Joint Liquidators from Baker Tilly
HAMILTON ACCIES: "Absolutely Insolvent," Lord Carloway Says
HIGHER EDUCATION: Fitch Cuts Ratings on Two Note Classes to 'BB'
INSCALE MEASUREMENT: Appoints Liquidators from Tenon Recovery
LLOYDS BANKING: U.K. Gov't Provides US$367 Bln in Asset Insurance
LLOYDS TSB: S&P Cuts Sub. Hybrid Capital Instruments to 'BB+'
MAINESIDE DEVELOPMENTS: Calls in Liquidators from Tenon Recovery
MINSTRELL LTD: Taps Joint Liquidators from Tenon Recovery
PRINCIPLES RETAIL: Buyer Not Found; 2,300 Jobs at Risk
TRANSTECH SYSTEMS: Appoints Liquidators from Tenon Recovery
VANWALL FINANCE: S&P Cuts Ratings on Two Classes of Notes to Low-B
* Moody's Downgrades Ratings on 20 Notes by CDO Transactions
* Large Companies with Insolvent Balance Sheet
*********
=============
B E L G I U M
=============
FORTIS NV: Agrees to Second Revision of Carve-Up Agreement
----------------------------------------------------------
Fortis holding has agreed with BNP Paribas SA and the Belgian
State to revise, for the second time, terms of a plan to break up
its business.
In the first amendment to the agreement, reported in the Troubled
Company Reporter-Europe on Feb. 3, 2009, BNP Paribas agreed to
take a 10% stake, as opposed to 100%, in Fortis's insurance unit,
Fortis Insurance Belgium, for a price of EUR550 million.
Philip Blenkinsop at Reuters relates the revisions will allow
Fortis holding to continue as an insurance company and will lower
its exposure to a pool of toxic assets.
The proposed new agreement will be subject to the approval of
shareholders at the shareholders' meetings of Fortis SA/NV in
Brussels and Fortis N.V. in Utrecht in April 2009.
Commenting on the proposed new agreement CEO Karel De Boeck said:
"After many days of negotiation, we are pleased to have been able
to agree with both BNP Paribas and the Belgian State on revised
terms of our agreement with BNP Paribas and the Belgian State. We
believe with a new agreement on the table, subject to
shareholders’ approval, it is now the right time to look forward
and to seize the opportunity we have to build for the future. We
have the nucleus of a new start for Fortis holding – a sizeable
domestic and international insurance franchise that provides us
with a platform for growth and future value creation. At the same
time, the new agreement allows us to reduce our investment in the
SPV."
Fortis Insurance Belgium
Fortis holding will sell 25% of the shares in Fortis Insurance
Belgium (FIB) to Fortis Bank for a total consideration of EUR
1,375 million, thereby valuing 100% of FIB at EUR5.5 billion.
The agreement cannot be unilaterally terminated before the end of
2020 by any of the parties.
Fortis holding and BNP Paribas have further agreed to explore
broader cooperation with respect to insurance activities, whereby
Fortis holding will become BNP Paribas' preferred commercial
partner for non-life insurance products. The parties will
together focus on developing certain non-life insurance activities
outside of France, Belgium, Turkey and certain other markets where
existing agreements with third parties prevent such cooperation.
BNP Paribas and Fortis holding will also enter into a
shareholders' agreement which will give Fortis Bank a
representation on the Board of Directors of Fortis Insurance
Belgium in line with the level of its shareholding.
SPV
The SPV will purchase about EUR2.0 billion of additional lines
from the structured credits portfolio of Fortis Bank, of which
about EUR1.0 billion will be in replacement of redemptions that
occurred since August 31, 2008, on the original portfolio. These
additional lines will be selected in mutual agreement between
parties from the remaining portfolio of Fortis Bank.
As a result, the conventional purchase price is therefore expected
to increase from EUR10.4 billion to about EUR11.4 billion (at
currency rates of August 31, 2008).
Under the terms of the proposed new agreement, Fortis holding’s
funding obligation in respect of, and maximum exposure to, the SPV
will be limited to EUR760 million, corresponding to 45% on a total
equity of EUR1.7 billion.
The financing by Fortis holding will consist of equity only. The
other parties will provide EUR740 million (SFPI/FPIM) and EUR200
million (BNP Paribas) in equity.
The remainder of the SPV funding will be provided by way of debt
financing by BNP Paribas and by Fortis Bank , partially guaranteed
by the Belgian State.
Fortis holding will also have the benefit of a loan of about
EUR1.0 billion from Fortis Bank to fund, amongst others, its
commitments towards the SPV.
CASHES
In line with the previous agreement, Fortis holding will no longer
be required to make an upfront payment of EUR2.35 billion related
to the settlement of the CASHES instrument. Furthermore, the
interest payment mechanism between Fortis holding and Fortis Bank
based on the evolution of the Relative Performance Note
("RPN")remains unchanged.
Call Option
Fortis holding will continue to have the benefit of a call option
granted by the SFPI/FPIM linked to the BNP Paribas shares to be
acquired by the SFPI/FPIM.
This cash settled option will entitle Fortis holding to the
difference between the stock price of the BNP Paribas shares at
the time of the exercise of the option and EUR68.
Under the new agreement, Fortis holding has been granted certain
anti-dilution rights which aim at preserving the value of the
option. However, such anti-dilution mechanism will not apply to a
BNP Paribas capital increase without preferential subscription
rights or to other cases where the SFPI/FPIM would be diluted
without compensation.
Estimated Pro Forma Net Cash
and Net Asset Value
The unaudited pro forma net equity attributable to shareholders of
Fortis holding at September 30, 2008, assuming approval by the
shareholders of the new agreement, would amount to EUR7.0 billion.
This represents an increase of EUR510 million compared to the
previous agreement, representing the capital gain on the sale of
an additional 15% in Fortis Insurance Belgium.
The unaudited pro forma net cash position as per September 30,
2008, assuming approval by the shareholders of the new agreement,
would increase to EUR3.4 billion. The net cash position is
impacted positively by the additional payment of EUR825 million
for 15% of Fortis Insurance Belgium and by the lower investment
(EUR240 million) in the SPV. This estimate does not take into
account potential future payments related to the RPN mechanism
related to the CASHES, nor the potential value of the option on
the BNP Paribas shares.
Court Ruling
As reported in the Troubled Company Reporter-Europe, the Brussels
Court of Appeals, in January, blocked an agreement for BNP Paribas
to buy all of Fortis's insurance unit because it wasn't approved
by Fortis shareholders.
On December 12, the Brussels Court of Appeal ruled in favor of a
group of shareholders seeking to block the carve-up of Fortis by a
trio of governments and the sale of assets to France's BNP
Paribas.
In September, Belgium, along with the Netherlands, and Luxembourg,
agreed to inject EUR11.2 billion into Fortis after its shares
slumped amid concerns about the company's solvency. The deals
left Fortis with only its international insurance business, a 66%
stake in a EUR10.4 billion portfolio of structured credit products
and financial assets and liabilities of various financing
vehicles.
The bank's deal then with Belgium involved subsequent transfer of
75% of the Belgian state's 100% interest in Fortis to BNP Paribas.
Under that original deal, BNP Paribas will also acquire 100% of
Fortis Insurance Belgium for a total consideration of EUR5.73
billion in cash.
The Brussels Court ordered a shareholder vote before Feb. 12 for
the transaction to proceed and said the government would have to
pay a fine of EUR5 billion to shareholders if it sold Fortis
before the vote.
The Court also appointed a panel of experts to review the proposed
dismantling of Fortis.
Following the Brussels Court ruling, Fortis said it incurred a net
loss of EUR295 million which reduced its pro forma net cash
position on September 30, 2008 from EUR2.1 billion to EUR1.8
billion and pro forma shareholders' equity from EUR6.7 billion to
EUR6.4 billion.
About Fortis holding
Fortis holding (Fortis SA/NV and Fortis N.V.) consists of (1)
Fortis Insurance Belgium (2) Fortis Insurance International, and
(3) financial assets and liabilities of various financing
vehicles. The international insurance activities (Fortis
Insurance International) are located in the UK, France, Hong Kong,
Luxembourg (Non-Life), Germany, Turkey, Russia, Ukraine and in
joint ventures in Luxembourg (Life), Portugal, China, Malaysia,
India and Thailand. Fortis holding is not involved in banking
activities.
About Fortis N.V.
Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers. The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance. The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners. In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited. As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited. In July 2008, the Company sold International Asset
Management Limited (IAM).
* * *
As reported by the Troubled Company Reporter on Oct. 9, 2008,
Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V.
long term issuer ratings to Baa2 from Baa1, and the ratings were
placed under review for possible downgrade. Debt ratings
benefiting from subordinated and preferred guarantees from the
joint holding companies were downgraded to Baa3 and Ba1
respectively. Certain securities benefiting from joint and
several guarantees from the holding companies and Fortis ASR
Levensverzkering N.V. were confirmed at Baa3 with a developing
outlook. Moody's also downgraded the insurance financial strength
rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from
A3, and the backed senior unsecured debt of Fortis Capital (Asia)
Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These
ratings now carry a developing outlook. The Group's CP rating was
affirmed at P-2 and placed under review for possible downgrade.
FORTIS NV: Fortis Bank Forecast EUR6 Billion 4th Qtr Loss
---------------------------------------------------------
Fortis Bank said it will post a net loss of about EUR6 billion
(US$7.55 billion) for the fourth quarter of 2008, EUR1 billion
higher than its January forecast of EUR5 billion, Reuters reports.
The bank's Tier 1 solvency ratio was nevertheless still around 10
percent at the end of 2008, the company said in a statement
obtained by Reuters.
Fortis Bank, according to Reuters, was formed from the carve-up of
listed Fortis by the Belgian, Dutch and Luxembourg governments at
the end of October.
Reuters relates Fortis Bank is 99.93 percent in the hands of the
Belgian state, with Luxembourg owning 49.9 percent of BGL, the
Luxembourg subsidiary. It is no longer part of the listed Fortis
Holding, Reuters notes.
About Fortis N.V.
Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers. The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance. The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners. In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited. As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited. In July 2008, the Company sold International Asset
Management Limited (IAM).
* * *
As reported by the Troubled Company Reporter on Oct. 9, 2008,
Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V.
long term issuer ratings to Baa2 from Baa1, and the ratings were
placed under review for possible downgrade. Debt ratings
benefiting from subordinated and preferred guarantees from the
joint holding companies were downgraded to Baa3 and Ba1
respectively. Certain securities benefiting from joint and
several guarantees from the holding companies and Fortis ASR
Levensverzkering N.V. were confirmed at Baa3 with a developing
outlook. Moody's also downgraded the insurance financial strength
rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from
A3, and the backed senior unsecured debt of Fortis Capital (Asia)
Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These
ratings now carry a developing outlook. The Group's CP rating was
affirmed at P-2 and placed under review for possible downgrade.
===============
B U L G A R I A
===============
CEZ: Price Cut of More Than BGN2/MwH Could Lead to Insolvency
-------------------------------------------------------------
CEZ could become insolvent within two or three months if it asked
to cut electricity prices by more than BGN2/Mwh, Focus News Agency
reports citing company spokesman Yasen Guev.
"The decrease of BGN 2/Mwh, which we suggest, is at the expense of
the shareholders and a decrease bigger than this as of April 1st
would mean that CEZ would be declared insolvent within two or
three months," the report quoted Mr. Guev as saying.
The report relates Mr. Guev has warned if the State Energy and
Water Regulatory Commission does not approve the company's
proposal for an average electricity price hike of 10.5% as of
July 1, the investment funds will be affected.
Headquartered in Sofia, Bulgaria, CEZ Bulgaria EAD --
http://www.cez.bg/-- was founded in the middle of 2005 to
represent the international power company CEZ Group. It is a
single-shareholder joint-stock company, 100% property of CEZ
Group.
===========
F R A N C E
===========
NATIXIS: Moody's Affirms Financial Strength Rating at 'D+'
----------------------------------------------------------
Moody's Investors Service downgraded the bank financial strength
rating of Caisse Nationale des Caisses d'Epargne from C+ to C with
a negative outlook. The BFSR of Banque Fédérale des Banques
Populaires was affirmed at C+, but its outlook was changed to
negative. Natixis' BFSR of D+ was also affirmed and its outlook
changed to negative. The long-term debt and deposit ratings and
short-term ratings of CNCE, BFBP and Natixis were affirmed at Aa3
with a stable outlook. All short-term ratings were affirmed at
Prime-1.
CNCE and BFBP are, respectively, the current central entities of
the Groupe Caisse d'Epargne and Groupe Banque Populaire and are
the parent companies of Natixis, which is the groups' wholesale
and financial services arm.
The rating actions reflect Moody's expectation that the commercial
banking and real estate activities of GCE and GBP may face
increasing pressure in a deteriorating economic environment. The
affirmation of the Aa3 senior debt and deposit ratings on the
other hand also incorporate i) Moody's continued expectation of
high intra-group solidarity, ii) the long-term credit profile of
these entities beyond the current government support-phase as well
as iii) the very high probability of on-going support from the
Aaa-rated French government. The rating actions also take into
account the groups' ongoing exposure to Natixis, which is likely
to continue to weigh on both groups' profitability and which is
reflected in the weaker positioning of Natixis in the D+ BFSR
range now mapping to a Baseline Credit Assessment of Ba1 from Baa3
previously.
Additionally, Moody's placed the A3 ratings of all hybrid
instruments of Natixis on review for possible downgrade,
reflecting the substantially weakened outlook for the bank's
profitability. The rating review will assess each instrument on a
case-by-case basis.
Moody's noted the approval of merger principles between GBP and
GCE's central entities announced on February 26, 2009. The rating
agency confirmed that it expects to assess the combined strength
of the new central body upon completion of the merger. Key
considerations in Moody's assessment will include the amount,
characteristics and allocation within the group of the forthcoming
state capital injection, the expected synergies from the combined
entities as well as details on the governance and strategic
priorities of the enlarged group.
BFSR Actions Reflect Deteriorating Economic Environment And
Continued Pressure On Natixis
Moody's downgrade of CNCE's BFSR to C, which translates into a BCA
of A2, follows the announcement of GCE's full-year results. The
rating action incorporates Moody's concerns about the risks
stemming from GCE's real estate exposure in a deteriorating
housing market environment and from some of the subsidiaries
operations. The group's results last week were in particular
weighed down by losses at its wholesale and financial services
subsidiary Natixis, in addition to higher funding and
restructuring costs as well as goodwill impairments from its
participation in Natixis and some real estate subsidiaries.
Moody's anticipates that the ongoing de-risking of Natixis will
take time to restore the bank's underlying profitability and is
likely to continue to burden its parent's profitability.
The pressure on CNCE's financial strength is, however, mitigated
by the broad-based retail franchise and low-risk profile of its
affiliated shareholders' savings banks, as well as by the planned
sale of non-core activities to free up capital and the elimination
of the CIFG risk via a commutation agreement completed in January
2009. CNCE's BFSR of C also factors in the forthcoming additional
capital injection from the French government, which is expected to
strengthen the group's Tier 1 capital ratio, which stood at 8.1%
under Basel II (with a 90% transitional floor and under Basel II
standard approach) at year-end 2008, although the details of this
capital injection -- the characteristics of the capital
instruments and their allocation within the group -- have yet to
be finalised.
The negative outlook on BFBP's BFSR of C+ incorporates Moody's
expectation that, despite GBP's large retail base, which has been
further enlarged by the integration of regional banks acquired
from HSBC France in 2008, the group's results are likely to remain
significantly exposed to Natixis' performance. The current
macroeconomic slowdown and more challenging environment for
commercial banking activities in France and the SME market in
particular could add potential stress on the group's financial
fundamentals. However, Moody's expects that the resilience of
regional banks' activities and their recurring underlying
profitability will provide a sufficient buffer to absorb the
higher cost of risk and mitigate the negative pressure in the
event that the performance of Natixis continues to burden GBP.
The negative outlook on Natixis' D+ BFSR and the lowering of its
BCA to Ba1 from Baa3 were triggered by substantial losses reported
last week for the full-year 2008, including write-downs on
structured finance and monoline exposures as well as a EUR0.8
billion trading loss on complex derivatives. Moody's believes
that the comprehensive transformation of Natixis' Corporate and
Investment Banking unit will take time to result in a less
volatile business model over the medium term. The change in BCA
to Ba1 also incorporates Natixis' continuous high dependence on
parental support and central banks to meet its funding needs.
Combined Strength Of The New Central Body To Be Assessed Upon
Merger Completion
Moody's views positively the objective of creating France's
second-largest banking group (after Crédit Agricole) via the
merger of GBP and GCE's central entities. It expects that the
merged central body will enhance the enlarged group's refinancing
prospects as well as Natixis' governance by simplifying its
ownership structure. However, Moody's notes that -- according to
the approval of merger principles between GBP and GCE's central
entities announced on February 26, 2009 -- both retail networks
should continue to operate separately under their own brands. The
new central body will be owned equally by the Caisse d'Epargne and
Banques Populaires' regional banks. It will own Natixis (72%, the
rest being free-floated) as well as the main retail banking
subsidiaries in France and internationally. The real estate
subsidiaries of the two groups, including Crédit Foncier de
France, Nexity and Foncia, will be held separately by two holding
companies owned directly by the regional banks (one holding for
each network).
Moody's commented that its opinion of the combined strength of the
new central body and new group is yet to be formalised, as key
elements such as the amount of the capital injection to be
received from the French government, the synergies and cost
savings to be expected, as well as the governance, strategic
priorities and changes, if any, in the solidarity and intra-group
support mechanisms have yet to be detailed. Moody's will also
assess the higher cohesion and integration within the enlarged
group expected to result from the merger, before concluding on the
combined strength of the new central body. The completion of the
merger between GBP and GCE's respective central bodies is planned
by the third quarter of 2009 and still subject to regulatory
approval.
Senior Debt Ratings Benefit From Intra-Group
Solidarity Schemes And Systemic Support
Natixis, CNCE and BFBP's long-term debt and deposit ratings are
affirmed at Aa3 with a stable outlook, reflecting the full support
expected from the solidarity mechanisms and cross-guarantees
prevailing within the two mutualist groups' respective domestic
retail networks, and both including Natixis, as affiliated
subsidiary. The combined strong parental support received by
Natixis from its parent companies was notably evidenced by a
EUR3.7 billion capital increase in September 2008, EUR2.5 billion
of which was subscribed by Natixis' parents. Parental support was
further confirmed in December 2008 after the issuance of
subordinated notes by BFBP and CNCE subscribed by the French
government through Société de Prises de Participations de l'Etat
-- SPPE, and mostly channelled to Natixis via a EUR1.9 billion
hybrid capital joint contribution.
Moody's assessment of a very high probability of systemic support
for both GCE and GBP has been reinforced by the recent
announcement of the French government's intention to subscribe in
preference shares and deeply subordinated debt to be issued by the
new central body of the group resulting from the merger of GCE and
GBP. This capital injection, of up to EUR5 billion, could enable
the State to take a stake of up to 20% in the new central body.
These strong elements of support result in a seven-notch uplift
for Natixis' global local currency and foreign currency deposit
ratings of Aa3/Prime-1, from its BCA of Ba1. For CNCE and BFBP,
these high support assumptions translate, respectively, into a
three-notch uplift from a BCA of A3, and into a two-notch uplift
from a BCA of A2. The stable outlook on the Aa3 long-term debt
and deposit ratings of Natixis, CNCE and BFBP reflects, inter
alia, the stability of expected support.
Hybrid Instruments Of Natixis On
Review For Possible Downgrade
The A3 long-term ratings of all the preferred stocks hybrid
instruments of Natixis are placed on review for possible
downgrade. Moody's believes that the substantially weakened
profitability outlook for Natixis is also exerting further
downward pressure on these ratings. The review will assess each
instrument on a case-by-case basis. The A3 preferred stock
ratings of these Natixis vehicles are also on review for possible
downgrade:
-- NBP Capital Trust I
-- NBP Preferred Capital I, LLC
-- NBP Preferred Capital III, LLC
-- NBP Capital Trust III
Last Rating Actions And Moody's Methodologies
The last rating action on Natixis was on December 22, 2008, when
Moody's downgraded the bank's BFSR to D+ from C. Moody's also
affirmed the Aa3 long-term deposit and senior unsecured debt
ratings and the bank's short-term Prime-1 deposit rating, in line
with the deposit and senior unsecured debt ratings of Natixis' two
parent companies: CNCE and BFBP. The bank's preferred stocks and
junior subordinated debts were downgraded by one notch to A3 from
A2 with a stable outlook.
The last rating action on CNCE was on October 20, 2008, when
Moody's changed the outlook on its C+ BFSR to negative from
stable. The long-term debt and deposit ratings were affirmed at
Aa3, with a stable outlook, and the short-term rating was affirmed
at Prime-1.
The last rating action on BFBP was on July 18, 2008, when Moody's
downgraded its deposit and senior unsecured debt ratings to Aa3
with a stable outlook, from Aa2. BFBP's BFSR was downgraded to C+
with a stable outlook, from B-. Its Prime-1 ratings were
unchanged.
Based in Paris, Groupe Caisse d'Epargne posted audited,
consolidated assets of EUR611.5 billion and a net profit, group
share, of EUR21 million at end-June 2008. Its Tier 1 capital
ratio was at 8.3% (Basel II) at end-June 2008.
Based in Paris, Groupe Banque Populaire posted audited,
consolidated assets of EUR360.4 billion and a net profit, group
share, of EUR94 million. Its Tier 1 capital ratio was at 9.6%
(under Basel II standard approach with transitional floor) at end-
June 2008.
Based in Paris, Natixis reported audited, consolidated assets of
EUR528 billion and a negative net income, group share, of
EUR-948 million at end-June 2008. The bank disclosed a Tier 1
ratio (under Basel II) of 9.3% at end-June 2008.
=============
G E R M A N Y
=============
BEVERAGE PACKAGING: Moody's Gives Neg. Outlook; Holds 'B1' Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on all ratings
of Beverage Packaging to negative from stable. The B1 corporate
family rating, the B1 probability of default rating, the Ba1
ratings on EUR 589 million senior secured bank debt, the B2 rating
on the EUR 480 million senior notes due 2016 and the B3 rating for
the EUR420 million senior subordinated notes due 2017 have been
affirmed.
Rainer Neidnig, lead analyst for Beverage Packaging at Moody's
said: "The rating affirmation reflects the company's solid
deleverage since 2007 and its strong business profile. The
outlook change to negative from stable, however, reflects the
overall bleak macroeconomic environment which might negatively
impact sleeve volumes in the markets of SIG". Neidnig went on
saying that: "While Moody's do not foresee any material
deterioration in credit metrics given the long-term nature of
sleeve supply contracts as well as flexibility in the company's
capex strategy, the pace of deleverage might lag behind initial
expectations incorporated in the current B1 rating."
Additional rating pressure could arise, should the overall
recessionary environment not allow Beverage Packaging to preserve
2008 profitability levels or to achieve further positive Free Cash
Flow generation in 2009. Moreover, Moody's would consider a
possible downgrade should leverage not further reduce from
currently still high levels. In turn, the outlook could be
stabilized again should the company's performance prove to be
resilient and allow for notable Free Cash Flow in 2009 applied to
further debt reduction.
The ratings remain supported by Beverage Packaging's strong
business profile and competitive position as one of the two
leading manufacturers in its field. The rating also benefits from
the relatively good revenue visibility resulting from long-term
supply contracts and fairly high costs for customers to switch its
packaging supplier. The rating is further supported by long-term
customer relationships in the fairly stable beverage and food
industry, the company's recognized technology and product know-
how, and an experienced management team. These characteristics,
in sum, should allow for a relatively resilient performance in the
current environment.
The rating however, also reflects the reliance on one product
segment and the company's still large exposure to the mature
European market which always creates a certain risk of
substitution by other packaging solutions. The rating also takes
into consideration the weak financial profile characterized by
high leverage and low coverage ratios. In addition, the company
could be challenged by volatile raw materials prices or increasing
pricing pressure in light of the overall recessionary environment,
ultimately resulting in lower profitability levels whereby the
level of raw material prices is currently in favour of SIG.
Upgrades:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Senior Subordinated Regular Bond/Debenture, Upgraded to LGD5,
86% from LGD5, 88%
-- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD4,
57% from LGD4, 60%
Outlook Actions:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Outlook, Changed To Negative From Stable
Issuer: Beverage Packaging Holdings I S.A.
-- Outlook, Changed To Negative From Stable
The last rating action was implemented on 22 July 2007, when the
B1 corporate family rating was affirmed with a stable outlook.
Beverage Packaging Holdings focuses on aseptic packaging products
for the food and beverage industries. The product range of its
operating company SIG Holding AG comprises both carton packaging
filling machines and the supply of aseptic carton sleeves with its
flagship product Combibloc. SIG operates on all five continents,
primarily in Europe and Asia where it is recording fast growth.
SIG is the number-two global player after Tetra Pak (unrated) in
the global aseptic market, with an estimated market share of about
20%. In fiscal year 2008, SIG had revenues of approximately
EUR1.25 billion with a workforce of 4,400 people. In May 2007,
SIG was acquired by Rank Group Holdings of New Zealand for a total
compensation of EUR 1.8 billion.
CONDOR IMMOBILIEN: Claims Registration Period Ends April 6
----------------------------------------------------------
Creditors of Condor Immobilien GmbH have until April 6, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on May 5, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Celle Nebenstelle
Hall 014
Ground Floor
Branch Mill Road 4
29221 Celle
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Thomas Erdmann
Einfrielinger Weg 4
29614 Soltau
Germany
Tel: 05191-96730
Fax: 05191-967320
E-Mail: Rae.Erdmann@t-online.de
The District Court opened bankruptcy proceedings against the
company on Feb. 25, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Condor Immobilien GmbH
Alter Schulweg 10
29640 Schneverdingen
Germany
Attn: Bjorn Calm, Manager
Lübecker Strasse 66
23843 Bad Oldesloe
Germany
CONTINENTAL AG: Board Chairman Quits Post on Schaeffler Dispute
---------------------------------------------------------------
Continental AG said the chairman of its supervisory board,
Hanover, Dr. Hubertus von Gruenberg, has resigned from his
position with immediate effect.
According to Continental, Dr. von Gruenberg is leaving the company
due to personal reasons.
Dr. von Gruenberg has been chairman of the company's supervisory
board since 1999 and chief executive officer of the company
between 1991 and June 1999.
Continental said until a new chairman is voted on, the supervisory
board will be led by the deputy chairman, Werner Bischoff.
Meanwhile, The Wall Street Journal reports following his
resignation, Dr. von Gruenberg made clear his disagreement with
Schaeffler KG following a meeting of Continental's board in
Frankfurt.
"Schaeffler has breached the spirit ... and content of our
investor agreement," the Journal quoted Mr. von Gruenberg as
saying, adding there is a risk Continental will "be roped in" by
the problems embroiling the family-owned German ball-bearings
maker.
The Journal recalls Schaeffler took on debt of EUR11 billion
(US$13.9 billion) when it bought a roughly 90% stake in
Continental -- just as global auto demand collapsed. Unable to
handle that burden, the Schaeffler family may be forced this month
to turn over the bulk of its stake in the group to a collection of
banks that financed the deal, the Journal says citing people
familiar with the matter.
Separately, Continental's supervisory board adopted its proposals
for shareholder representation to be submitted to a vote at the
company's Annual Shareholders' Meeting on April 23, 2009. The
nominees are:
* Prof. Dr. Hans-Joerg Bullinger, President
of the Fraunhofer-Gesellschaft
* Mr. Gunter Dunkel, Chairman of the
Executive Board of Nord/LB
* Dr. Michael Frenzel, Chairman of the
Executive Board of TUI AG
* Dr. Juergen Geissinger, President and CEO
of INA-Holding Schaeffler KG
* Prof. Dr. Ing. E.h. Hans-Olaf Henkel,
Honorary Professor at the University of Mannheim
* Mr. Rolf Koerfer, Lawyer
* Dr. Klaus Mangold, Chairman of the Supervisory
Board of Rothschild GmbH
* Mr. Georg Schaeffler, Partner of the
Schaeffler Group
* Ms. Maria Elisabeth Schaeffler, Partner of
the Schaeffler Group
* Dr. Bernd W. Voss, Member of various
Supervisory Boards
Net Loss
As reported in the Troubled Company Reporter-Europe on Feb. 23,
2009, Continental incurred a net loss of EUR1,123.5 million in
full year 2008 from a net income of EUR1,020.6 million in 2007
primarily as a result of goodwill impairment.
The increase in raw material prices also had a negative impact of
approximately EUR325 million in 2008 compared with the average
prices for 2007, the company said in a Feb. 19 statement.
Consolidated sales in 2008 increased 45.8% to EUR24,238.7 million
compared with sales of EUR16,619.4 million for the same period in
2007, due chiefly to the company's acquisition of Siemens VDO.
Job Cuts
Compared with 2007, Continental's workforce decreased by 12,499
employees to 139,155. There were considerable staff reductions
primarily in the Automotive Group as a result of restructuring
measures and portfolio adjustments. The sale of the electric
motors activities alone reduced the number of employees by 4,561.
In addition, contracts with some 5,000 temporary workers were not
extended.
No 2008 Dividend
Due to the net loss it incurred for the year, Continental said it
won't be paying any dividend for fiscal 2008.
Credit Ratings
As reported in the Troubled Company Reporter-Europe on Feb. 25,
2009, Moody's Investors Service downgraded Continental AG's
corporate family rating to Ba2 from Ba1. The outlook on the
ratings remains negative.
On Feb. 6, 2009, the TCR-EUR reported Fitch Ratings downgraded
Continental AG's Long-term Issuer Default and senior unsecured
ratings to 'BB' from 'BB+'. The Short-term IDR was affirmed at
'B'. At the same time the Long- term IDR and senior unsecured
ratings have been removed from Rating Watch Negative. The Outlook
on the Long-term IDR is Negative.
A TCR-EUR report on Jan. 29, 2009 said Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on
Continental AG to 'BB' from 'BBB-', following its analysis of
Continental's revised business plan and the renegotiation of
financial covenants. The short-term corporate credit rating on
the group was lowered to 'B' from 'A-3'. At the same time, the
ratings were removed from CreditWatch where they were placed with
negative implications on Dec. 15, 2008, on increasing concerns
about a possible covenant breach. The outlook is negative.
About Continental AG
Headquartered in Hanover, Germany, Continental AG (OTC:CTTAY) --
http://www.conti-online.com/-- is an automotive industry
supplier. The Company focuses its activities on the development,
production and distribution of products that improve driving
safety, driving dynamics and ride comfort. It operates in six
main divisions. Chassis and Safety provides active and passive
driving safety, safety and chassis sensor systems, as well as
chassis components. Powertrain offers gasoline and diesel
systems, actuators, motor drives and fuel supply, as well as
hybrid electric vehicles systems. Interior manufactures
information management modules and wireless mobile devices.
Passenger and Light Truck Tires provides tires for passenger cars,
light trucks, motorcycles and bicycles. Commercial Vehicle Tires
offers tires for trucks, as well as industrial and off-the-road
vehicles. ContiTech specializes in the rubber and plastics
technology, offering functional parts, components and systems for
the automotive industry and other sectors.
EXKLUSIV HANDY: Claims Registration Period Ends April 2
-------------------------------------------------------
Creditors of Exklusiv Handy GmbH have until April 2, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on April 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 Duesseldorf
Meeting Hall A 424
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:
Horst Piepenburg
Heinrich-Heine-Allee 20
40213 Duesseldorf
Germany
The District Court opened bankruptcy proceedings against the
company on Feb. 26, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Exklusiv Handy GmbH
Heinrich-Heine-Allee 41
40213 Duesseldorf
Germany
Attn: Ismail Arslan, Manager
Claubergstrasse 12
47051 Duisburg
Germany
FUNDO WHEELS: Claims Registration Period Ends April 1
-----------------------------------------------------
Creditors of Fundo Wheels GmbH have until April 1, 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 13, 2009, at which time the
insolvency manager will present her first report.
The meeting of creditors will be held at:
The District Court of Darmstadt
Hall 4.311
Building D
Mathildenplatz 15
64283 Darmstadt
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:
Julia Kappel-Gnirs
Bleichstr. 2-4
60313 Frankfurt
Germany
Tel: 069-913092-0
Fax: 069-913092-30
The District Court opened bankruptcy proceedings against the
company on Feb. 26, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Fundo Wheels GmbH
Attn: Arvid Ulleboe, Manager
Marie-Curie-Strasse 6
64823 Gross-Umstadt
Germany
GENERAL MOTORS: Republican Lawmakers Want Federal Aid Stopped
-------------------------------------------------------------
Nadine Elsibai at Bloomberg News reports that Republican lawmakers
said that the Congress should stop providing General Motors Corp.
with federal assistance and let the firm go bankrupt if necessary.
Bloomberg relates that Senator John McCain described bankruptcy as
the best thing that could happen to GM. Citing Mr. McCain,
Bloomberg states that GM could reorganize and renegotiate its
labor contracts to come out "stronger, better, leaner."
According to Bloomberg, Senator Richard Shelby said that
"subsidization of anything for very long never works.... The
automobile business -- those companies, Chrysler, Ford and General
Motors -- they're in deep trouble. I've suggested they go into
Chapter 11. That's where they belong. And they could
reorganize."
The government shouldn't give GM any more funds "until General
Motors shows that they can be a viable company for the long
term.... Anything short of that is just throwing good money after
bad," Bloomberg quoted House Minority Leader John Boehner as
saying.
House Speaker Nancy Pelosi, Bloomberg relates, told reporters at a
weekly press briefing last week, "Any money we give to the auto
industry must be a lifeline, not life support. This isn't
endless. But there has to be a sign of viability. And this needs
to happen, and it needs to happen soon."
Bloomberg quoted GM spokesperson Renee Rashid-Merem as saying, "As
we've demonstrated through a series of actions, GM is moving
quickly and aggressively to restructure the business, and
achieving that outside of court remains the best solution for GM
and its constituents."
GM, as part of a restructuring required to keep US$13.4 billion in
U.S. loans, is cutting executive pay and will lay off about 47,000
workers this year, Bloomberg says.
Bloomberg notes that the Federal Reserve's Term Asset-Backed
Securities Loan Facility program may help struggling automakers
raise cash to make loans to consumers. The report states that
TALF's aim is to bring investors back to the market for bonds
backed by auto loans, credit cards, student loans, and small
businesses. The Federal Reserve, according to the report, said
that it will begin disbursing TALF funds on March 25 to boost the
market for consumer and small business loans.
Stock Drop Worsens Bankruptcy Fears
Dow Jones Newswires reports that GM shares further dropped as much
as 32% to US$1.27 on Friday, a level not seen since 1933.
"We've rated [GM bonds] underperform since February, but we now
believe a bankruptcy is more likely and the potential recovery
even harder to determine," Dow Jones quoted GimmeCredit analyst
Shelly Lombard as saying.
Dow Jones relates that President Barack Obama gathered his auto
task force in a closed-door session after GM raised still more
bankruptcy concerns. As reported by the Troubled Company Reporter
on March 6, 2009, Deloitte & Touche LLP, which GM's Audit
Committee retained to audit the Company's consolidated financial
statements and the effectiveness of internal controls, as of and
for the year ended December 31, 2008, said that there is
substantial doubt about the Company's ability to continue as a
going concern. According to Dow Jones, the "ominous retreat"
increased the bankruptcy chatter that has hurt the stock for
months.
If GM and its bondholders don't come up with a plan to convert
two-thirds of the company's debt into equity, the task force would
likely force the firm to file for bankruptcy than move the
March 31 deadline, Dow Jones says, citing Ms. Lombard.
Task Force to Visit GM, Chrysler & Ford
Neil King Jr. and John D. Stoll at The Wall Street Journal report
that the task force will visit the headquarters of GM, Chrysler
LLC, and Ford Motor Co. in Detroit. The group has been gathering
information about GM and Chrysler after they submitted rescue
plans to the Treasury Department, WSJ relates. The report states
that Treasury Department advisers Steven Rattner and Ron Bloom,
who are leading the auto task force, will seek to clarify
lingering questions surrounding the companies' rescue plans, which
many analysts have criticized as overly optimistic.
The task force, says WSJ, will meet with the United Auto Workers
union to discuss its willingness for:
-- deep compromises over wages,
-- staff cutbacks, and
-- funding for its retiree health plan.
The Associated Press relates that the U.S. government said on
Friday that it was trying to determine "how to be the best
partner" for the struggling auto industry as its task force met
Friday to review the status of GM and Chrysler. The AP states
that cabinet-level members of the panel, led by Treasury Secretary
Timothy Geithner and White House economic adviser Larry Summers,
were at the White House to review restructuring plans from GM and
Chrysler. "Team is looking through those plans and figuring out
how to be the best partner in what's next for the auto industry,"
The AP quoted Robert Gibbs, the White House press secretary, as
saying.
GM Plans Payment-Assurance Program
Robert Sherefkin and David Barkholz at Automotive News report that
GM told its parts suppliers that it will roll out a payment-
assurance program that it hopes the task force will approve this
month. GM estimates that program to cost the government about
US$4.5 billion, according to the report. The report states that
the company is trying to ease suppliers who are worried that a
bankruptcy might freeze payments for parts delivered. The report
says that GM is aiming to launch the program on March 31.
According to Automotive News, suppliers would use the insurance to
persuade banks to continue to lend them working capital against
receivables owed for parts delivery. Automotive News states that
suppliers could demand cash on delivery for parts, without credit
insurance. This would increase GM's cash problems, the report
says.
German Gov't Aid to Opel to Take Weeks
Tony Czuczka and Chris Malpass at Bloomberg relates that Economy
Minister Karl-Theodor zu Guttenberg said after talks with GM
executives that any decision on the German government aid for
Opel division will take weeks. The report quoted Minister
Guttenberg as saying, "General Motors has understood that there
are still a series of open questions and they agree to answer the
open questions. We also agreed that we're talking about a process
that takes weeks."
The German government had said that Opel's overhaul plan isn't
enough to grant the GM unit's request for EUR3.3 billion in
financial assistance. "There are many detailed questions that we
will answer," Bloomberg quoted Carl-Peter Forster, Opel's top
executive in Europe, as saying.
GM, to try to win European aid, may give up as much as 50% of its
Opel unit, Bloomberg says, citing Mr. Forster. According to the
report, Opel's supervisory board agreed to transform the company
into a separate legal entity.
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.
GM's common stock was considered the stock market's bellwether for
many years, hence the saying "What's good for GM is good for
America."
* * *
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: Seeks Wellensiek's Advice on Opel's Reorganization
------------------------------------------------------------------
General Motors Corp. and its German unit, Adam Opel GmbH, hired
three law firms to advise on reorganization and insolvency
options, Joseph Mapother at Bloomberg News reports citing a
spokesman for GM Europe.
Bloomberg News relates that according to the spokesman, who
declined to be identified, Baker & McKenzie and Clifford Chance
LLP will advise GM Europe, while Heidelberg, Germany-based
Wellensiek will advice GM's Opel unit, Bloomberg News discloses.
In a telephone interview on Friday, the spokesman, as cited by
Bloomberg News, said "For Opel, the primary reason is for advice
on reorganizing".
On Feb. 25, 2009, the Troubled Company Reporter-Europe reported
that according to Bloomberg News, Opel supervisory-board member
Armin Schild said the German unit needs a lifeline of more than
EUR3.3 billion (US$4.23 billion).
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.
German Chancellor Angela Merkel has said GM's Opel must present a
clear plan before Berlin could consider state aid, Reuters
recalled.
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.
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 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: Opel Should Consider Insolvency Over State Aid
--------------------------------------------------------------
Roland Gribben at The Daily Telegraph reports that German interior
minister Wolfgang Schaeuble said Opel, General Motor's German
unit, should consider insolvency rather than seek for a government
bail-out.
Mr. Schaeuble, as cited by The Daily Telegraph, said insolvency
was a better option for Opel than a state aid because it would
give the ailing GM unit a chance to start again rather than go out
of business.
Reuters relates Mr. Schaeuble told the Handeslblatt business daily
"In cases like Opel, one should seriously consider exercising
insolvency law. Our modern insolvency law is not set up for the
destruction but for the preservation of economic assets." He
added "The public perception is that insolvency is associated with
going bust or bankruptcy. But that is wrong. We must grasp that
to survive such a crisis, modern insolvency rules are a better
solution than the state taking a stake."
However, guardian.co.uk notes Opel's management has spoken out
against insolvency, saying the knock-on effect on distributors and
dealers would cost 300,000 jobs in Europe and 100,000 in Germany.
Citing German weekly magazine Der Spiegel, Reuters discloses Opel
was threatening to close its German plants in Eisenach and Bochum
as well as its Belgian site in Antwerp.
Guarantees
Reuters says the German government is still examining GM Europe's
rescue plan for Opel. Chancellor Angela Merkel, Reuters states,
has left open the possibility of granting the German unit help,
possibly in the form of guarantees. However, Ms. Merkel, as
cited by Reuters, said GM must improve the rescue plan if if it
wants government support for Opel.
According to The Daily Telegraph, Germany wants guarantees on
jobs, plants and assurances that any aid will be ring fenced to
prevent any 'leakage' of funds into ailing US operations.
"The current discussion in Germany is characterised by the fear
that any aid granted to the German Opel operations could factually
be transferred to the US operations to cover their financial
needs," guardian.co.uk quoted Robert Heym of the Munich branch of
the law firm Reed Smith as saying.
Reuters notes German Economy Minister Karl-Theodor zu Guttenberg
on Friday said it will take several weeks to decide whether to
give state aid.
U.S. Visit
Mr. Guttenberg plans to travel to the U.S. from March 15 to March
18 for talks with GM executives on their plans for Opel, Bloomberg
News discloses. He is also scheduled to meet U.S. Treasury
Secretary Timothy Geithner, Bloomberg News adds.
Rescue Plan
On March 5, 2009, the Troubled Company Reporter-Europe, citing
The Daily Telegraph's Jamie Dunkley and James Quinn, reported
that the plan will see up to half of Vauxhall and Opel being
acquired by outside investors. GM will retain the remainder, The
Daily Telegraph noted.
The Daily Telegraph recalled GM Europe head Carl-Peter Forster,
on Friday said under the restructuring proposals, the new entity
will also seek EUR3.3 billion (GBP2.9 billion) in aid from
European governments and receive a EUR3 billion injection from GM.
The company will also look to make EUR1.2 billion worth of cost
cuts as it lowers capacity, The Daily Telegraph added.
The Guardian disclosed according to Opel head Hans Demant, Opel,
which employs 26,000 people in Germany, would "largely detach"
itself from GM and reorganize as a joint-stock company to lure
investors and state backing to save it from insolvency. However,
Mr. Forster noted that the German unit would become "significantly
more independent" as a self-standing European company, but would
retain close links with GM, The Guardian noted.
Bloomberg News recounted in a Bloomberg Television interview
on Tuesday Mr. Demant said GM ownership of Opel is "absolutely
necessary because we do need our mother in the background to
provide for and help us with technology development." GM Vice
Chairman Robert Lutz in a Bloomberg Television interview from
Geneva on Monday noted that GM prefers to maintain "operational
and technical control" of Opel, Bloomberg News added.
BBC News recalled GM chief operating officer Fritz Henderson has
warned the European divisions of the U.S. automaker could collapse
within weeks without European governments' help. Mr. Henderson
said governments should step in immediately to ensure GM Europe
does not run out of money by April or May, BBC stated.
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 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.
HEIDELBERGCEMENT AG: S&P Cuts L-T Corp. Credit Rating to 'B-'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on HeidelbergCement AG to 'B-' from
'B+'. The 'B' short-term corporate credit rating was affirmed.
At the same time, the senior unsecured debt ratings were lowered
to 'CCC+' from 'B'. All ratings remain on CreditWatch negative
where they were placed on Oct. 24, 2008.
S&P's recovery rating on the senior unsecured bonds issued by
HeidelbergCement AG and subsidiaries remains unchanged at '5',
indicating S&P's expectation of modest (10%-30%) recovery in the
event of a payment default.
"The action reflects our opinion that there is a material risk
that a default -- according to S&P's criteria definition -- could
occur by May 2010," said Standard & Poor's credit analyst Xavier
Buffon.
In S&P's view this risk is nearing as the company faces heavy debt
maturities by mid-2010 (including the EUR5 billion Tranche B of
the Hanson acquisition facility), and as S&P continue to think
that end-June 2009 covenants would most likely be violated under
existing limits, given the amount of pressure on cash flows S&P
expects to stem from the current highly challenging economic
environment. At this stage, S&P consider it more likely than not
that the company will obtain covenant relaxation from its bank
creditors, but S&P does not exclude that this may not occur.
Whether the company will be able to refinance or extend debt
maturities, and under what terms and conditions, is much more
uncertain, in S&P's view.
In addition, a default by May this year would not be impossible
either in S&P's view, as S&P anticipates modest liquidity headroom
in second-quarter 2009, but at this stage S&P does not see it as a
significant risk.
The ratings therefore reflect a material risk of default within a
year or so, given risks of breach of covenants at end-June 2009 if
the current negotiations fail, heavy debt maturities by mid-2010,
reported financial difficulties at HeidelbergCement's controlling
shareholder, as well as a highly leveraged financial structure
inherited from the mostly debt-financed EUR14 billion acquisition
of Hanson PLC in mid-2007. S&P thinks that the current harsh
market environment will impose significant pressure on cash flows
this year, which will likely be compounded by the typically heavy
working capital outflows in the first half, and seasonal effects.
"We intend to closely follow any further developments regarding
the debt restructuring process," said Mr. Buffon.
If covenants were not waived, S&P would consider lowering the
rating before June 2009. If covenants were changed and provided
enough headroom this year, S&P would closely follow any progress
toward the refinancing of the 2010 maturities, and S&P could lower
the ratings as S&P came closer to these maturities if they
remained untackled. Any agreement to reschedule maturities would
also require close scrutiny as to the terms and conditions before
deciding what impact -- positive, negative, or none -- it would
have on the ratings.
HYPO REAL ESTATE HOLDING: FM Says 75% Gov't Stake Will Save Firm
----------------------------------------------------------------
Bloomberg News reports German Finance Minister Peer Steinbrueck
said the state needs to gain more than 75 percent control of Hypo
Real Estate Holding AG ("HRE") to save the lender.
Given the worsening financial crisis, the government may "sooner
rather than later be faced with the difficulty that the survival
of the bank is seriously endangered," the report quoted Minister
Steinbrueck as saying Friday last week. "We must make sure, by
gaining a controlling majority, that the restructuring measures
succeed."
Rescue of HRE is being pulled by two forces. According to
Bloomberg News, Chancellor Angela Merkel's Christian Democrats
favor taking 75 percent plus one share, while many of their Social
Democrat coalition partners want to take 90 percent or more of the
lender's stock.
The report recalls Chancellor Merkel's Cabinet agreed on a draft
bill Feb. 18 allowing the state to seize HRE as a last resort
after the government granted it EUR102 billion (US$129 billion) of
public funds and guarantees. However, Christian Democrats are
leery of the measures as they lose voter support to the pro-
business Free Democrats ahead of Sept. 27 national elections, the
report says.
JC Flowers's Stake
On March 6, 2009, the Troubled Company Reporter-Europe, citing The
Daily Telegraph, reported J. Christopher Flowers-led investment
firm J. C. Flowers & Co may take legal action if it is unable to
reach an agreement with the German government over its stake in
HRE.
According to The Daily Telegraph, Mr. Flowers has said that he
hopes a compromise could be reached with the government.
A TCR-Europe report on Feb. 24, 2009, citing Bloomberg News, said
Mr. Flowers would prefer to remain a shareholder of HRE.
"It is not our preference to sell and to cash in. It is our
preference to stay as a shareholder," Mr. Flowers said in a
statement obtained by Bloomberg News.
However, a spokesman for the German finance ministry, as cited by
The Daily Telegraph, said Tuesday last week there were no grounds
for talks between the two sides.
"The position of Mr. Flowers would lead to a situation where the
German government would not have full control over HRE," Reuters
quoted the spokesman as saying. The spokesman added this would
prevent Berlin from pushing through a restructuring of HRE,
Reuters disclosed.
Bloomberg News said Mr. Flowers has been holding talks with the
government on finding a solution for HRE.
According to Bloomberg News, Mr. Flowers paid EUR1.1 billion for
his stake in Hypo Real Estate and is asking for 10 euros per share
from the government.
Government Aid
According to Bloomberg News, Hypo Real, which already received
EUR92 billion from the government, was forced to seek a bailout
after Depfa Bank Plc, its Dublin-based unit, failed to get short-
term funding in September when credit markets seized up.
Hypo Real now needs another EUR10 billion, a Handelsblatt report
obtained by Bloomberg News said.
As reported in the Troubled Company Reporter-Europe on Jan. 23,
2009, the German Financial Markets Stabilisation Fund ("SoFFin")
extended its framework guarantee granted to Hypo Real Estate Group
by an additional EUR12 billion, bringing the aggregate guarantee
amount to EUR42 billion.
Hypo Real Estate Bank AG, part of Hypo Real Estate Group, can use
the additional guarantees to be issued by SoFFin to collateralize
debt securities to be issued, which must be due for repayment by
June 12, 2009 at the latest.
Hypo Real Estate Bank AG will pay to SoFFin a pro-rata commitment
commission of 0.1% on the undrawn portion of the framework
guarantee, and a 0.5% p.a. fee on guarantees drawn upon.
Negotiations between Hypo Real Estate and SoFFin regarding more
extensive and longer-term liquidity and capital support measures
for the Group have not yet been finalized.
About five weeks ago, SoFFin extended its EUR30 billion framework
guarantee for the Group from January 15, 2009 until April 15,
2009. Under the extended guarantee, Hypo Real Estate Bank AG can
use the SoFFin guarantees to collateralize debt securities to be
issued, which must be due for repayment by April 15, 2009 at the
latest. Hypo Real Estate Bank AG will then pay to SoFFin a pro-
rata commitment commission of 0.1% of the undrawn portion of the
framework guarantee. The fee for guarantees drawn will be 0.5%
p.a. (previously 1.5% p.a.).
About Hypo Real Estate
Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group. It is an international real estate
financing company, combining commercial real estate financing
products with investment banking. The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management. Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.
* * *
As reported in the Troubled Company Reporter-Europe on Dec. 2,
2008, Dominion Bond Rating Service downgraded its long-term
ratings for Hypo Real Estate Holding AG (Holding) and related
entities (together Hypo Real Estate or the Group), including the
Senior Unsecured Long-Term Debt rating for Holding, which was
downgraded to A (low) from "A". Concurrently, all ratings have
been placed Under Review with Negative Implications.
DBRS's rating action followed the announcement of Hypo Real
Estate's Q3 2008 results, the announcement of an additional EUR20
billion short-term debt guarantee and of additional information
about the Group's liquidity challenges, earnings outlook and
pending application for more comprehensive external support.
The downgrade and the Under Review Negative status reflect DBRS's
concern that Hypo Real Estate's franchise has been weakened by its
ongoing liquidity challenges. The Group's lack of access to
market funding currently restricts its ability to write new
business and requires it to seek more comprehensive support,
demonstrating the weakening of its intrinsic fundamentals, the
rating agency said.
A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group
incurred a consolidated pre-tax loss of EUR3.105 billion for the
third quarter of 2008 compared with a pre-tax profit of EUR237
million in the corresponding previous year period. The quarterly
loss is mainly attributable to the writeoff of goodwill
and other intangible assets attributable to the initial
consolidation of DEPFA Bank Plc (EUR2.482 billion).
On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's
Ratings Services lowered its long-term counterparty credit ratings
on the seven rated entities of Hypo Real Estate (HRE) group to
'BBB' from 'BBB+', namely, Germany-based commercial real estate
lenders Hypo Real Estate Bank International AG and Hypo Real
Estate Bank AG, public-finance lenders Depfa Deutsche
Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and
Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank
Bank International S.A.
"These rating actions reflect the group's strained financial
profile, weak funding position, and concerns about the viability
of its business model," said Standard & Poor's credit analyst
Volker von Kruechten. "We expect HRE to restructure and downsize,
which may cause further pressure on earnings and capital, owing to
the difficult market environment and a deteriorating credit
cycle."
KUTURA FASHION: Claims Registration Period Ends April 3
-------------------------------------------------------
Creditors of Kutura Fashion GmbH have until April 3, 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 April 29, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Stuttgart
Room 178
Hauffstr. 5
70190 Stuttgart
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Dr. Volker Viniol
Danneckerstr. 52
70182 Stuttgart
Germany
Tel: 0711/23 88 90
Fax: 0711/23 88 930
The District Court opened bankruptcy proceedings against the
company on Feb. 26, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Kutura Fashion GmbH
Jakob-Schuele-Str. 25
73655 Pluederhausen
Germany
PHOENIX BAUGESELLSCHAFT: Claims Registration Period Ends April 4
---------------------------------------------------------------
Creditors of Phoenix Baugesellschaft mbH have until April 4, 2009,
to register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on April 22, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Friedberg
Hall 20A
Homburger Road 18
61169 Friedberg (Hessen)
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:
Tim Schneider
Industriestrasse 11
35463 Fernwald
Germany
Tel: 0641-94464530
Fax: 0641-94464533
The District Court opened bankruptcy proceedings against the
company on Feb. 26, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Phoenix Baugesellschaft mbH
Herrenstrasse 100
63674 Altenstadt
Germany
Attn: Horst Gerken, Manager
In den Borngarten 7
61130 Nidderau
Germany
PREPS SERIES: Fitch Junks Ratings on Four Classes of Notes
----------------------------------------------------------
Fitch Ratings has downgraded the PREPS series of German mezzanine
CLO transactions (PREPS 2004-2, PREPS 2005-1, PREPS 2005-2, PREPS
2006-1, PREPS 2007-1), removed the notes from Rating Watch
Negative and assigned rating Outlooks.
The notes were initially placed on RWN on July 31, 2008 to reflect
the potential for downgrades as a result of Fitch's new Global
Rating Criteria for Corporate CDOs (published on 30 April 2008).
Whilst the rating actions are the result of the updated rating
criteria, they are mainly driven by continued negative performance
of the underlying portfolio companies and the high obligor
concentration in the pools.
The number of performing portfolio companies has decreased in all
transactions as a result of early terminations, insolvencies and
payment defaults. The top obligor concentration in these
transactions ranges between 3.3% and 4.2%. The top 5 obligors
account for 16.3% to 20.8%. In particular, Fitch notes that the
PREPS 2005-2 and PREPS 2006-1 class B notes' ability to withstand
default events of these largest obligors has decreased to two and
three top obligors, respectively.
In addition, the portfolios have experienced negative rating
migration. The credit quality for the majority of the portfolio
companies is determined by a mapping approach, with Fitch's Issuer
Default Rating scale being mapped to the internal rating scales
from HVB, Credit Suisse, and ING Bank. Having tracked the
performance of 11 Fitch-rated German Mezzanine CLOs (including the
PREPS transactions), which were initially assessed by means of
mapping, Fitch notes that the average credit quality of the
borrowers in these transactions lies one notch below Fitch's
initial credit assessment. In resolving the RWN status of the
PREPS series, Fitch assumed the same average portfolio migration
(one notch lower) and combined this assumption with the available
portfolio information.
The securitized debt instruments in the transactions are deeply
subordinated. As a result, Fitch assumes no recovery in its
analysis. In addition to default simulations using its Portfolio
Credit Model, Fitch has performed cash-flow analysis to stress
possible interest rate and default timing patterns. The
transaction benefits from high levels of excess spread and a
principal deficiency mechanism for excess spread trapping.
Currently, all PREPS transactions, apart from PREPS 2005-1, show
debits in the principal deficiency ledgers (PDL) that have not yet
been reduced to zero by the application of excess spread. For
PREPS 2005-2, the PDL amount of EUR32.8 million cannot be reduced
to zero by scheduled maturity even if no further defaults occur.
For PREPS 2006-1, the PDL amount of EUR21.9 million can only be
reduced to zero and repaid to the class A noteholders within the
next 7 payment dates.
Based on Fitch's analysis, the credit enhancement derived from
both subordination and excess spread is not sufficient to justify
the previous ratings of the notes.
PREPS 2004-2 limited partnership:
-- EUR342,646,072 Class A1 notes (ISIN: XS0205676272):
downgraded to 'BBB' from 'AAA', removed from RWN, assigned a
Stable Outlook,
-- EUR65,390,472 Class A2 notes (ISIN: XS0205676942): downgraded
to 'BBB' from 'AAA', removed from RWN, assigned a Stable
Outlook,
-- EUR46,000,000 Class B1 notes (ISIN: XS0205677320): downgraded
to 'B' from 'BBB+', removed from RWN, assigned a Stable
Outlook,
-- EUR40,000,000 Class B2 notes (ISIN: XS0205677676): downgraded
to 'B' from 'BBB+', removed from RWN, assigned a Stable
Outlook,
PREPS 2005-1 limited partnership:
-- EUR150,797,765 Class A1 notes (ISIN: XS0225228765):
downgraded to 'BB+' from 'AAA', removed from RWN, assigned a
Stable Outlook,
-- EUR51,702,091 Class A2 notes (ISIN: XS0225229144): downgraded
to 'BB+' from 'AAA', removed from RWN, assigned a Stable
Outlook,
-- EUR47,000,000 Class B notes (ISIN: XS0225229813): downgraded
to 'B-(minus)' from 'A', removed from RWN, assigned a Stable
Outlook,
PREPS 2005-2 plc:
-- EUR200,444,222.99 Class A1 notes (ISIN: XS0236849005):
downgraded to 'BB' from 'AA', removed from RWN, assigned a
Stable Outlook,
-- EUR48,956,423.13 Class A2 notes (ISIN: XS0236849427):
downgraded to 'BB' from 'AA', removed from RWN, assigned a
Stable Outlook,
-- EUR41,500,000 Class B1 notes (ISIN: XS0236849930): downgraded
to 'CCC' from 'B', removed from RWN,
-- EUR12,500,000 Class B2 notes (ISIN: XS0236850862): downgraded
to 'CCC' from 'B', removed from RWN,
PREPS 2006-1 plc:
-- EUR223,335,734 Class A1 notes (ISIN: XS0261122732):
downgraded to 'BB-(minus)' from 'AAA', removed from RWN,
assigned a Stable Outlook,
-- EUR844,192 Class A2 notes (ISIN: XS0261125081): downgraded to
'BB-(minus)' from 'AAA', removed from RWN, assigned a Stable
Outlook,
-- EUR40,000,000 Class B1 notes (ISIN: XS0261125677): downgraded
to 'CCC' from 'BBB', removed from RWN,
-- EUR9,000,000 Class B2 notes (ISIN: XS0261127376): downgraded
to 'CCC' from 'BBB', removed from RWN,
PREPS 2007-1 plc:
-- EUR174,250,000 Class A1 notes (ISIN: XS0289620709):
downgraded to 'BB-(minus)' from 'AAA' removed from RWN,
assigned a Stable Outlook,
-- EUR35,000,000 Class B1 notes (ISIN: XS0289620881): downgraded
to 'B-(minus)' from 'A' removed from RWN, assigned a Stable
Outlook.
SOCIAL-INTERFACE GMBH: Claims Registration Period Ends April 5
--------------------------------------------------------------
Creditors of Social-Interface GmbH have until April 5, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:25 a.m. on May 5, 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:
Christoph Nuesser
Aachener Strasse 222
50931 Koeln
Germany
Tel: 400 77 57
The District Court opened bankruptcy proceedings against the
company on Feb. 5, 2009. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
Social-Interface GmbH
Parkstr. 24 – 28
50169 Kerpen
Germany
Attn: Christian Meyer, Manager
Blankeneser Landstr. 94
22587 Hamburg
Germany
=============
I C E L A N D
=============
* ICELAND: Slipped Into Recession in Fourth Quarter of 2008
-----------------------------------------------------------
Iceland slipped into a recession in the fourth quarter of 2008 as
its major financial sector was devastated by the world credit
crisis, AFP reports citing the country's statistics office.
AFP relates the statistics office said on Friday Iceland's gross
domestic product (GDP) fell by 0.9 percent in the fourth quarter
compared to the output level in the preceding three months.
The economy had contracted by 3.4 percent in the third quarter,
AFP discloses.
=============
I R E L A N D
=============
BRIDDOCK O'SULLIVAN: Goes Into Voluntary Liquidation
----------------------------------------------------
Briddock O'Sullivan Group Limited has gone into voluntary
liquidation after experiencing a decline in business amid the
recession, Ian Kehoe at The Sunday Business Post reports.
The report relates according to its most recent accounts, the
company, whose membership was revoked by the Irish Institute of
Credit Management following criticism of its debt-collection
policies, had retained losses of EUR972,000 at the end of March
2007.
The company, as cited by the report, said "A third party has
expressed its intention to take over existing client contracts
with a view to completion of service, subject to agreement by the
liquidator who will be appointed at the upcoming creditors
meeting".
The creditors' meeting will take place in a Dublin hotel on March
16, the report discloses.
Based in Dublin, Ireland, Briddock O'Sullivan Group Limited --
http://www.briddockosullivan.com/-- provides credit Management
and debt recovery solutions to corporations and businesses trading
in Ireland.
G&L PROPERTY: ACC Agrees to Provide Loan Under Rescue Plan
----------------------------------------------------------
Ian Kehoe at The Sunday Business Post reports that ACC has agreed
to provide a further loan to G&L Property Investments, the
development company behind the Parkside retail and residential
development in Co Laois, to help it overcome its current
financial diffculty.
According to the report, the new loan will be secured against the
assets of the group, which sustained losses due to the difficulty
in closing sales of residential and commercial units at the
Parkside shopping center.
ACC, which is owed some EUR400 million in relation to the Parkside
development, has agreed to advance further funds to pay a dividend
to creditors, the report discloses.
The report relates that under a scheme of arrangement prepared by
the group's examiner, KPMG accountant Kieran Wallace, preferential
creditors will receive 20 per cent of their debts, while unsecured
creditors will be paid 8 per cent. Secured creditors will retain
their security, the report notes. Creditors are set to vote on
the scheme, which if approved will then go before the High Court
for final ratification, the report states.
On Dec. 2, 2008, citing The Sunday Business Post's Ian Kehoe, the
Troubled Company Reporter-Europe reported that G&L Property
Investments went into examinership after running out of cash. The
company racked up debts of more than EUR40 million. Its most
recent accounts showed revenues of EUR17.4 million in 2006 and
retained profits of EUR2.4 million.
ACC is the company's largest creditor.
G&L Property Developments is owned by Michael Lalor and John
Grace.
MASTERCHEFS: Creditors Set to Vote on Rescue Plan
-------------------------------------------------
Ian Kehoe at The Sunday Business Post reports that a scheme of
arrangement for Masterchefs will be put to vote in the coming
days.
The report relates that under the scheme, which was prepared by
the Mastechefs' examiner, KPMG accountant, Kieran Wallace, the
company's current owners and a new investor will advance
additional cash to the business. According to the report, the
investment is being made through an offshore investment firm
called Quinn Jar.
The scheme is expected to safeguard more than 200 full-time jobs
and a further 400 part-time posts at the company, the report
notes.
The report discloses under the scheme, preferential creditors will
get 20 per cent of the money owed to them, while non-secured
creditors will be paid 10 per cent. Secured creditors and leasing
creditors will receive all the money they are owed, the report
states.
Creditors are set to vote on the scheme, which if approved will be
put to the High Court for ratification, the report adds.
On Nov 28, 2008, the Troubled Company Reporter-Europe, citing the
Irish Times' Barry O'Halloran, reported that Masterchefs opted to
go into examinership voluntarily after the loss of a key contract
left it with short-term cashflow difficulties.
According to the report, the company lost the contract to provide
catering at Leopardstown racecourse. The deal was worth more than
EUR3 million to Masterchefs, whose assets net of liabilities stood
at EUR253,000.
Masterchefs provides corporate catering at high-profile sports and
other events. The company has been trading for more than 20
years. It employs up to 600 catering staff at bigger events.
XANCON: On the Brink of Liquidation
-----------------------------------
Ian Kehoe and Gavin Daly at The Sunday Business Post reports that
Xancon, the holding company behind Lightstorm Networks, is set to
go into liquidation.
According to the report, if appointed, the liquidator will attempt
to sell Lightstorm's technology in an effort to recoup money for
creditors and shareholders. The report discloses among
Lightstorm's shareholders are Trinity Venture Capital and Delta
Partners.
Lightstorm, which raised EUR16 million from investors, including
private equity companies and government agencies, made a loss of
EUR4.7 million in 2007, widening accumulated losses to EUR14.7
million, the report relates.
John Tracey, the chief executive of Trinity Venture Capital, as
cited by the report, said that Lightstorm had "major technology",
but that the market had "not responded quickly enough".
Based in Galway, Ireland, Lighstorm Networks is a semi-conductor
company operating in a so-called fabless model. The company
developed chips for carrier ethernet technology. It has offices
in Dublin and in Massachusetts in the U.S.
=========
I T A L Y
=========
BANCA ITALEASE: Shareholders Discuss Plan to Delist Company
-----------------------------------------------------------
Banca Italease SpA's leading shareholders are in talks about
possible delisting of the company, Nigel Tutt at Reuters reported
citing top shareholder Banco Popolare Societa Cooperativa.
According to the report, Banco Popolare has been seeking a
solution for its 30 percent-owned affiliate since the collapse
last year of an attempt to find a strategic partner.
"There are contacts under way between the (controlling) pact
shareholders. At present no decision has been taken on the future
of the leasing company," the bank said in a statement obtained by
Reuters.
A UBS research report obtained by Reuters said the takeover of
Italease would drive Banco Popolare's Core Tier 1 capital ratio
down to about 5.5 percent.
"The bank then would need at least EUR1.5 billion additional
capital before any potential clean-up," the UBS research report
cited by Reuters said.
Reuters relates an analyst with a Milan bank meanwhile said
Italease would be unable to issue state-backed bonds to boost its
capital on a stand-alone basis because it did not meet government
conditions.
Reuters recalls Italease posted a nine-month net loss of EUR222
million as it restructured after huge losses from derivatives
investments in 2007.
Banca Italease SpA (BIT:BIL) --- http://www.italease.it/--- is an
Italy-based banking company. Banca Italease provides retail
leasing services through: Italease Secondacasa, offering real
estate leasing; Tiarredo, providing furniture leasing; Tiarredo
Arte, specializing in art leasing; Tiguido, offering car and
motorcycle leasing, and Tivaro, providing boat leasing. Banca
Italease also offers corporate leasing through its subsidiaries:
LeasinGomme, Real Estate Leasing, Industrial Leasing, Public
Sector Leasing and Corporate Car Leasing. Other areas of
Company’s operations are: subsidized leasing, medium and long-term
lending, insurance products, factoring, long-term car leasing, and
Interest Rate Swap (IRS) contracts.
* * *
As reported in the Troubled Company Reporter-Europe on Dec. 5,
2008, Fitch Ratings affirmed Banca Italease's Individual rating at
'D/E' and kept the Long-term 'BB' rating of the bank's EUR150
million trust preferred securities on Rating Watch Negative.
As of March 9, 2009, Banca Italease continues to carry Moody's
Ba1/Not-Prime/D-
ratings on its long- and short-term deposit ratings as well as
bank financial strength (BFSR), respectively. All ratings have a
stable outlook.
IT HOLDING: Luxembourg Bourse Suspends Trading of Sr. Notes 2012
----------------------------------------------------------------
Following admission of IT Holding SpA and its main Italian
subsidiaries to the extraordinary administration proceedings, the
Luxembourg Stock Exchange decided to suspend the trading of the
"Senior Notes 2012", issued by IT Holding Finance S.A. until
further notice.
As reported in the Troubled Company Reporter-Europe on Mar. 2,
2009, IT Holding's filing, which affected 1,700 jobs, came two
weeks after the company put one of its subsidiaries, Ittierre SpA,
into bankruptcy protection.
IT Holding was put into bankruptcy after missing loan installments
and failing to pay suppliers and royalties for as much as a year,
Bloomberg News said.
According to Bloomberg News, IT Holding missed a loan payment in
October and an extension three months later.
The Financial Times reported Italy's Minister of Economic
Development, Mr. Claudio Scajola, said the government extended
bankruptcy protection to IT Holding "to safeguard the group and
its ability to continue in business."
According to The Associated Press, Minister Scajola said he would
announce the first measures by mid-March to support Italy's
fashion industry.
Ittierre Bankruptcy
Ittierre, IT Holding's main production and licensing unit, filed
for protection from its creditors Feb. 9 after banks refused to
inject the necessary capital to keep its business keep going, the
AP said.
Bloomberg News added Ittierre said it missed loan payments and was
late in paying royalties to designers.
On Feb. 12, 2009, Minister Scajola accepted the application filed
by Ittierre for "Amministrazione Straordinaria" and appointed Mr.
Andrea Ciccoli, partner in Bain & Co., Mr. Stanislao Chimenti,
lawyer, and Mr. Roberto Spada, Certified Public Accountant, as
commissioners.
Ittierre Gets Financing
The Financial Times reported Ittierre received Feb. 25 a EUR30
million (US$38 million) loan from a consortium of Italian banks.
UniCredit SpA, Banca Popolare dell'Emilia Romagna Scrl, Banca
Popolare di Milano Scarl, Banco Popolare SC and Intesa Sanpaolo
SpA will provide the loan, Ittierre's administrators said in an e-
mailed note obtained by Bloomberg News.
Cavalli Affected
Bloomberg News reported Italian fashion designer Roberto Cavalli
canceled a fashion show scheduled Feb. 26 in Milan for the Just
Cavalli fall/winter collection, citing the collapse of Ittierre.
"I made the decision to safeguard the image and clients of Just
Cavalli," the designer said in an e-mailed statement obtained by
Bloomberg News. "The difficult situation of Ittierre doesn’t give
me the guarantee or security to be able to remain, as always, at
the forefront with my youthful line."
In a separate report, Bloomberg News said Mr. Cavalli told daily
Il Sole 24 Ore in an interview he is owed about EUR20 million
(US$26 million) in royalties from Ittierre.
Ittiere controls 100% of the Just Cavalli licence, according to
The Guardian.
Ittiere Responds to Cavalli's Statement
Ittiere's Extraordinary Commissioners, on March 1, said "they have
instructed the lawyers nominated in accordance with the procedure,
to safeguard the interests of
[Ittiere] with reference to damages of an industrial and economic
nature as well as with reference to the loss of image caused by
the statements repeatedly released by Mr. Cavalli in the last few
days, regarding the Just Cavalli license and the Commissioners'
activities."
According to Ittiere's Commissioners, the cancellation of the Just
Cavalli ladies collection Fall/Winter 2009-2010 fashion show was
an unjustified decision taken unilaterally by Mr. Cavalli, causing
a significant loss of image for Ittiere.
Proof of this is the fact that the "Gianfranco Ferré", "C’N’C
Costume National and "Galliano" by John Galliano fashion shows are
taking place regularly in Milan and Paris, Ittiere's Commissioners
said.
About IT Holding SpA
Based in Milan, Italy, IT Holding SpA (BIT:ITH) –-
http://www.itholding.com/-- operates in the luxury goods market.
The company and its subsidiaries design, produce and distribute
apparel, accessories, eyewear and perfumes. Its brand portfolio
embraces: owned brands, Gianfranco Ferre, Malo, Exte, as well as
licensed brands, Versace Jeans Couture, Versace Sport, Just
Cavalli, C’N’C Costume National and Galliano. The company's
production facilities are located in Italy. IT Holding SpA has a
worldwide distribution network, including 39 directly operated
stores, 274 monobrand stores and over 6,000 department and
specialty stores. In order to be present in the most significant
markets, IT Holding SpA has dedicated market companies: ITTIERRE
SpA, ITTIERRE France SA, ITTIERRE Moden GmbH, IT USA HOLDING Inc
and IT Asia Pacific Limited, among others.
* * *
As reported in the Troubled Company Reporter-Europe on Mar. 3,
2009, Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on IT Holding SpA to 'D' from 'SD'. The
senior secured debt rating on the EUR185 million senior secured
notes issued by IT Holding Finance S.A. were also lowered to 'D'.
The recovery rating on the notes remains unchanged at '5',
indicating S&P's expectations of modest (10%-30%) recovery for
noteholders in the event of a payment default.
As reported in the Troubled Company Reporter-Europe on Feb. 11,
2009, Moody's Investors Service downgraded IT Holding SpA's
Probability of Default Rating to D from Ca and the Senior Secured
rating on the EUR185 million notes due 2012 issued by IT Holding
Finance SpA from Ca to C. The Corporate Family Rating remains
unchanged at Ca. The outlook on the ratings is stable.
UNIONFIDI PIEMONTE: Fitch Downgrades Long-Term IDR to 'BB'
----------------------------------------------------------
Fitch Ratings has taken varied rating actions on three Italian
confidi, specialized credit guarantors working with local SMEs, as
detailed in the comment below. At the same time, the agency has
withdrawn the Insurer Financial Strength Ratings of the three
confidi subsequent to the rating actions applied to the individual
IFS Ratings shown below.
Unionfidi Piemonte:
-- Long-term Issuer Default Rating: downgraded to 'BB' from
'BB+'; Outlook revised to Negative from Stable
-- Short-term IDR: affirmed at 'B'
-- IFS Rating: downgraded to 'BB' from 'BB+'; Outlook revised to
Negative from Stable; rating withdrawn
The downgrade of UPI's Long-term IDR and the change in Outlook to
Negative reflect its scarce capitalization compared to other rated
peers and limited profitability combined with Fitch's expectation
of deteriorating asset quality. Although UPI's ratings also
reflect its improved internal organization and low market risk
exposure, the outlook for the domestic economy is bleak, and Fitch
expects problem guarantees to increase significantly. This
increase is likely to raise UPI's cost of credit, putting
profitability, and ultimately UPI's already low capital, under
pressure.
Eurofidi
-- Long-term IDR: affirmed at 'BBB+'; Outlook Stable
-- Short-term IDR: affirmed at 'F2'
-- IFS Rating: affirmed at 'BBB+'; Outlook Stable; rating
withdrawn
Eurofidi's ratings reflect Fitch's view of the high probability
that the Region of Piemonte (rated 'AA-'((AA minus))/Stable) and
its finance company subsidiary, FinPiemonte Partecipazioni (FPP,
72%-owned by the Region of Piemonte), would provide support to
Eurofidi in case of need. Fitch notes that without the support
from the Region of Piemonte, Eurofidi's ratings would be below
their current level given its weak asset quality. Eurofidi is
indirectly owned (19%) by the Region of Piemonte, through FPP.
Eurofidi is strategic to the region in its policy of supporting
local SMEs. The region and FPP appoint some of Eurofidi's board
members, including its president, and exert effective control over
the confidi. RP has supported Eurofidi's growth plans in the past
and is committed to continuing to do so. With over EUR4.5 billion
of gross guarantees issued at end-September 2008, it is the
largest confidi in Italy. Any change in the region's ability or
propensity to support Eurofidi could affect the latter's ratings.
During 2008 asset quality deteriorated sharply, and the confidi's
asset quality is weak. End-September 2008 gross problem
guarantees increased to a quite high 7.1% of total gross
guarantees, and to a level higher than its rated peers. Fitch
expects further deterioration in the confidi's guarantee book in
coming quarters because the severity of the economic downturn is
expected to intensify. Despite the increase in total gross
guarantees, annual credit losses at Eurofidi remain low at about
1% of the total outstanding amount.
Federfidi Lombarda:
-- Long-term IDR: affirmed at 'BBB+'; Outlook Stable
-- Short-term IDR: affirmed at 'F2'
-- IFS Rating: affirmed at 'BBB+'; Outlook Stable; rating
withdrawn
The ratings of FL reflect its close relationship with the Region
of Lombardy (RL, rated 'AA-' ((AA minus))/Stable). RL exercises
influence over the entity's governance. FL was originally
established through a regional law and receives annual budgeted
contributions from the RL. Any change in the RL's ability or
propensity to support FL could affect the latter's ratings. Fitch
notes that without the support from RL, FL's ratings would be
below their current level.
===================
K A Z A K H S T A N
===================
ECONDA LLP: Creditors Must File Claims by April 10
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Econda insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
Tynybaev St. 42
Shymkent
South Kazakhstan
Kazakhstan
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev St. 42
Shymkent
South Kazakhstan
Kazakhstan
DESIGN COMPLECT: Creditors Must File Claims by April 10
-------------------------------------------------------
LLP Design Complect has declared insolvency. Creditors have until
April 10, 2009, to submit written proofs of claim to:
Baishev St. 65
Almaty
Kazakhstan
FORUM OIL: Creditors Must File Claims by April 10
-------------------------------------------------
LLP Forum Oil has declared insolvency. Creditors have until
April 10, 2009, to submit written proofs of claim to:
Balzak St. 2-31
Almaty
Kazakhstan
GRAND TABRIYA: Creditors Must File Claims by April 10
------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Grand Tabriya Mebel insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
Bajov St. 2
070000 Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
The Court is located at:
The Specialized Inter-Regional
Economic Court of East Kazakhstan
Bajov St. 2
070000 Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
GULNUR LLP: Creditors Must File Claims by April 10
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Firm Gulnur insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
Altynsarin St. 31
Aktobe
Aktube
Kazakhstan
The Court is located at:
The Specialized Inter-Regional Economic Court of Aktube
Satpayev St. 16
Aktobe
Aktube
Kazakhstan
KOSTA-NAI LLP: Creditors Must File Claims by April 10
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Kosta-Nai insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov St. 70
Kostanai
Kazakhstan
KUANYSH LLP: Creditors Must File Claims by April 10
---------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Kuanysh insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
Ilyaev St. 24
Shymkent
South Kazakhstan
Kazakhstan
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev St. 42
Shymkent
South Kazakhstan
Kazakhstan
NIRVANA TOUR: Creditors Must File Claims by April 10
----------------------------------------------------
LLP Nirvana Tour Company has declared insolvency. Creditors have
until April 10, 2009, to submit written proofs of claim to:
Tauelsyzdyk St. 122-6
Taldykorgan
Almaty
Kazakhstan
SVYAZ COMPLECT: Creditors Must File Claims by April 10
------------------------------------------------------
LLP Kaz Svyaz Complect Plast has declared insolvency. Creditors
have until April 10, 2009, to submit written proofs of claim to:
Kunaev St. 30-47
Almaty
Kazakhstan
VENTURA-AN LLP: Creditors Must File Claims by April 10
------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Ventura-An insolvent.
Creditors have until April 10, 2009, to submit written proofs of
claim to:
Ilyaev St. 24
Shymkent
South Kazakhstan
Kazakhstan
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev St. 42
Shymkent
South Kazakhstan
Kazakhstan
===================
K Y R G Y Z S T A N
===================
KAZ-INVEST LLC: Creditors Must File Claims by March 20
------------------------------------------------------
LLC Kaz-Invest has declared insolvency. Creditors have until
March 20, 2009, to submit written proofs of claim to:
LLC Kaz-Invest
Gvardeyski side street 31
Bishkek
Kyrgyzstan
Tel: (+996 312) 44-34-50
=====================
N E T H E R L A N D S
=====================
LYONDELL CHEMICAL: Judge Says BASF Can't Pull Out of Buyout
-----------------------------------------------------------
A judge ruled that Germany-based BASF SE, the world's biggest
chemical producer, can't pull out of a partnership involved in the
2007 buyout of Lyondell Chemical Co. by Access Industries
Holdings, Jef Feeley and Phil Milford of Bloomberg News reported.
Delaware Chancery Court Judge Leo Strine threw out BASF's suit
over a Texas chemical plant it owned in partnership with an entity
controlled by Lyondell. Bloomberg noted that a unit of Access
bought Lyondell for about US$13 billion in cash in November 2007
to form LyondellBasell Industries, one of the world's largest
plastics makers. BASF argued the partnership agreement allows it
to pull out if Lyondell or one of its units no longer operates the
facility and stressed that access's purchase of Lyondell triggered
the buyout clause because its partner was no longer running the
plant.
Delaware Judge Strine, as cited by the report, in 22-page ruling
said, "The plain language of the withdrawal provision does not
entitle BASF to have its interest bought out simply because
Lyondell has experienced a change of control". The source adds
that Judge Strine found two things, that BASF couldn't produce any
evidence to show Lyondell officials had ceased overseeing the
plant since the buyout and that the change of control didn't
change operational procedures at the facility.
"The fact that Lyondell now has a single stockholder does not
rationally support an inference that Lyondell does not operate
anything itself, including the plant," Judge Strine concluded.
According to the report, the ruling comes as Houston-based
Lyondell seeks to reorganize in bankruptcy court because of a
"dramatic softening in demand" for chemicals and a jump in raw-
material prices, officials said in January.
===========
P O L A N D
===========
POLSKA GRUPA: Fitch Puts 'BB' National Rating on Negative Watch
---------------------------------------------------------------
Fitch Ratings has placed Poland's largest pharmaceutical
distributor Polska Grupa Farmaceutyczna S.A.'s National Long-term
rating of 'BB(pol)' on Rating Watch Negative. The National Short-
term rating is simultaneously affirmed at 'B(pol)'.
The RWN action reflects Fitch's concerns about PGF's liquidity
constraints in FY09 and FY10, increased refinancing risk in the
short-term and the impact of potential increases in borrowing
costs on the company's outstanding debt. The credit ratings are
under pressure on the back of deteriorated credit metrics at YE08
and weaker operating margins of PGF.
The available liquidity at Q408 consisting of PLN66 million of
cash and unused long term committed lines was insufficient to
cover PGF's short-term financial liabilities due in 2009 amounting
to PLN201 million, especially as additionally the company will
have to pay up to PLN37.5 million related to put options resulting
from acquisitions made in 2007. Fitch notes the company placed
additional long term bond and increased the committed amount of
one of the credit lines early-2009, which eased the pressure on
liquidity to some degree.
PGF is facing substantial refinancing risk during 2009 as multiple
different bank credit lines mature during this year. Given that
Polish banks are tightening their lending policy towards the
corporate sector, there is a risk that negotiations with the
lending banks on extending these credit lines may result in
substantially smaller future amounts being loaned on less
favorable terms, including higher margins than on previous loans.
Furthermore, these new loans may also be secured against the
company's assets.
Credit ratings of PGF came under pressure because of deteriorated
credit metrics at end-2008 compared to YE07 on the back of
increased total gross debt of PLN788 million, which includes the
value of the acquisition put options (PLN127 million).
Furthermore, lower-than-expected EBITDA of PLN97 million
(excluding gain from asset disposal) did not keep pace with the
increase in debt. Fitch calculates that PGF's leverage ratio,
measured as lease-adjusted net debt to EBITDAR, rose to almost
7.7x at end-2008 from 7.0x at end-2007.
The ratings reflect PGF's aggressive financial policy as evidenced
by its high financial leverage and strategy of growth through
acquisitions. This is mitigated by the company's leading position
in the growing Polish pharmaceuticals distribution market, and a
chain of 1,800 pharmacies owned or operating within PGF's loyalty
program. In FY08 PGF generated Cash Flow from Operations of
PLN140 million, mainly due to improved working capital. Fitch
also recognizes the company's target to reduce the gross debt in
FY09. PGF expects this should be achieved by capex reduction,
forgoing dividend from the 2008 net profit and cash flow generated
by operating activity - especially if supported by further
efficiency measure gains in working capital usage. Company
management has also stated that no further debt-funded
acquisitions are currently planned.
The RWN is likely to be resolved once Fitch has more clarity on
the terms and conditions of the negotiations with PGF's lending
banks, and Fitch's assessment will also depend on the tenor of the
working capital lines to be extended, given the company will face
large liabilities due in FY10. The agency will also evaluate the
measures taken by the company to reduce its leverage and to
preserve the margins.
===========
R U S S I A
===========
GAZPROMBANK: Moody's Junks Ratings on Class B and C Notes
---------------------------------------------------------
Moody's Investors Service has downgraded these classes of Notes
issued by Gazprombank Mortgage Funding 2 S.A.:
-- Class A1, Downgraded to B3; previously on February 26, 2009
Downgraded to Baa1 and kept Under Review for Possible
Downgrade;
-- Class A2, Downgraded to B3; previously on February 26, 2009
Downgraded to Baa1 and kept Under Review for Possible
Downgrade;
-- Class B, Downgraded to Caa3; previously on September 17, 2008
Placed Under Review for Possible Downgrade;
-- Class C, Downgraded to Caa3; previously on September 17, 2008
Placed Under Review for Possible Downgrade;
The rating action is mainly prompted by the current unhedged
exposure to foreign exchange risk and concludes the review process
for this transaction that started last September when all the
Notes were placed on review for possible downgrade following the
bankruptcy of Lehman Brothers Holding Inc.
In this transaction LBHI was the guarantor for both the swap
provider and the liquidity facility provider and therefore
Gazprombank 2007-1 is currently fully exposed to foreign exchange
and interest rate risk and does not benefit from any liquidity
source other than the cash reserve fund which is now fully funded
in an amount equal to approximately 1.90% of the outstanding
balance of the Notes.
In the review process Moody's has taken into consideration that
current foreign exchange rates are significantly less favourable
than those entered into at closing (34.7 for the RUB/EUR exchange
rate) and has assumed that the Issuer will not find a replacement
swap and will be exposed to the foreign exchange spot rates until
maturity. The senior class A1 is denominated in EUR and it is now
equivalent to approximately 70% of the outstanding Notes. The
collateral pool consists of fixed rate loans denominated in RUB
and originated by a range of local regional banks and non-banking
entities located in various regions of the Russian Federation.
Moody's previous rating action on notes issued by Gazprombank
2007-1 was on 26 February when the class A1 and A2 notes were
downgraded from A3 to Baa1 following the downgrade of Gazprombank
's senior unsecured debt rating to Baa2 from A3. This action took
into account the role of Servicer Indemnifying Party and Back up
Servicer performed by Gazprombank in this transaction.
INDUSTRIAL OIL: Creditors Must File Claims by April 28
------------------------------------------------------
Creditors of LLC Industrial Oil and Gas Corporation (TIN
0261011575) (Equipment Production) have until April 28, 2009, to
submit proofs of claims to:
S. Konovalov
Insolvency Manager
Post User Box 19
Sterlitamak-28
453128 Bashkortostan
Russia
The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No A07–9614/2008.
The Debtor can be reached at:
LLC Industrial Oil and Gas Corporation
Stakhanovskaya St. 45
Ishimbay
Bashkortostan
Russia
KAMYSHINSKIY COTTON: Creditors Must File Claims by March 29
-----------------------------------------------------------
Creditors of LLC Kamyshinskiy Cotton Plant (TIN 3436011158, PSRN
1023404962745) have until March 29, 2009, to submit proofs of
claims to:
A. Shlyakhov
Temporary Insolvency Manager
Prospect Lenna 72
400005 Volgograd
Russia
The Arbitration Court of Volgogradskaya will convene at
9:30 a.m. on May 21, 2009, to hear bankruptcy supervision
procedure. The case is docketed under Case No. A12–1659/2009.
The Debtor can be reached at:
LLC Kamyshinskiy Cotton Plant
Lenina St. 5
Kamyshin
403874 Volgogradskaya
Russia
KHABAROVSK GRAIN: Creditors Must File Claims by March 29
--------------------------------------------------------
Creditors of SUE Khabarovsk Grain Mill – Bread (TIN 2723077182)
have until March 29, 2009, to submit proofs of claims to:
B. Lyusternik
Insolvency Manager
Respublikanskaya St. 17
Khabarovsk
Russia
The Arbitration Court of Khabarovskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A73–6237/2008–37.
LARSEN-SERVIS LLC: Kamchatskiy Bankruptcy Hearing Set July 21
-------------------------------------------------------------
The Arbitration Court of Kamchatskiy will convene on July 21,
2009, to hear bankruptcy proceedings on LLC Larsen-Servis (TIN
4100003820, PSRN 1024101021450) (Construction). The case is
docketed under Case No. A24–648/2008.
The Insolvency Manager is:
A. Kanygin
Office 500
Leningradskaya St. 33a
683003 Petropavlovsk-Kamchatskiy
Russia
The Debtor can be reached at:
LLC Larsen-Servis
Okeanskaya St. 84a
683010 Petropavlovsk-Kamchatskiy
Russia
MAS-PROM LLC: Creditors Must File Claims by April 28
----------------------------------------------------
Creditors of LLC Mas-Prom (TIN 1434028748, PSRN 1031401724529)
(Timber Processing) have until April 28, 2009, to submit proofs of
claims to:
A. Krayev
Insolvency Manager
Post User Box 238
Neryungi
678960 Yakutia
Russia
The Arbitration Court of Yakutia commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. A58–2580/08.
The Debtor can be reached at:
LLC Mas-Prom
Serebryanyy Bor
678995 Yakutia
Russia
MEGAPOLIS –STROY LLC: Creditors Must File Claims by March 29
------------------------------------------------------------
Creditors of LLC Megapolis-Stroy (Construction) have until
March 29, 2009, to submit proofs of claims to:
N. Krivoshein
Insolvency Manager
Post User Box 33/21
680054 Khabarovsk
Russia
The Arbitration Court of Khabarovsk commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A73–7454/2008.
NORD COMPANY LLC: Creditors Must File Claims by April 28
--------------------------------------------------------
Creditors of LLC Nord Company (TIN 2725019972) (Lumbering) have
until April 28, 2009, to submit proofs of claims to:
V. Shvedko
Insolvency Manager
Krasnorechenskaya St. 118
680045 Khabarovsk
Russia
Tel: (4212) 36–09–62,
(4212) 41–52–20.
The Arbitration Court of Khabarovskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No A73–7116/2008–37.
The Debtor can be reached at:
LLC Nord Company
Office 1
Zaparina St. 3d
680000 Khabarovsk
Russia
ORIMEK-SUVAR LLC: Tatarstan Bankruptcy Hearing Set June 25
----------------------------------------------------------
The Arbitration Court of Tatarstan will convene at 1:00 p.m. on
June 25, 2009, to hear bankruptcy supervision procedure on LLC
Orimek-Suvar (TIN 1655059159, PSRN 1021602854460) (Construction).
The case is docketed under Case No. A65–1000/2009,-SG4–27.
The Temporary Insolvency Manager is:
Sh. Garipov
Post User Box 16
420073 Kazan
Tatarstan
Russia
The Debtor can be reached at:
LLC Orimek-Suvar
Spartakovskaya St. 6
420107 Kazan
Tatarstan
Russia
SPAS-STROY LLC: Creditors Must File Claims by March 29
------------------------------------------------------
Creditors of LLC Spas-Stroy (TIN 1435158919) (Construction) have
until March 29, 2009, to submit proofs of claims to:
Yu. Nikitin
Insolvency Manager
Komsomolskaya St. 82/1
680000 Khabarovsk
Russia
The Arbitration Court of Yakutia commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. A58–4830/08.
The Debtor can be reached at:
LLC Spas-Stroy
Beringa St. 7/1
Yakutsk
Russia
TROIKA DIALOG: Africa's Standard Bank to Acquire 33% Stake
----------------------------------------------------------
Troika Dialog is entering into a strategic alliance with Standard
Bank Group under which Standard Bank will become a 33% shareholder
in Troika Dialog. Standard Bank will pay US$200 million in cash
(initially structured as a convertible loan) and make an in kind
contribution of 100% of its commercial bank in Russia (ZAO
Standard Bank) plus all its other Russian business. The
transactions are subject to regulatory approvals, inter alia, in
Russia and South Africa. Following receipt of regulatory
approvals, Troika Dialog will have a capital base in excess of
US$850 million.
Standard Bank Group is the largest African banking group by assets
and earnings, which operates in 17 African countries and 20
emerging countries outside of Africa, including Russia, Brazil,
and China. As of December 31, 2008 total assets exceeded R1 509
billion (approximately US$162 billion). It has a market
capitalization of approximately US$9.5 billion and has a long term
foreign currency debt rating of Baa1 from Moody's, BBBpi from
Standard and Poor's and A from Fitch Ratings. Standard Bank's
single largest shareholder is the Industrial and Commercial Bank
of China.
The strategic alliance provides Troika Dialog with a new partner
that brings the resources and expertise of a global house with new
geographic, product and client business opportunities.
Culturally, both partners are emerging market 'champions'
dedicated to developing their businesses in critical size emerging
markets. Following completion, it is the intention that all
Russian business of the two parties will be transacted through
Troika Dialog. A Strategic Committee will also be established,
with equal representation on both sides, to develop synergies and
explore new business areas and geographies.
The alliance is a further milestone in Troika Dialog's strategy to
develop its position as Russia's number one independent full
service integrated investment banking and asset management
business. The alliance also provides Troika Dialog with a well
established commercial banking platform in Moscow that excels in
wholesale banking.
Two representatives of Standard Bank will join Troika Dialog's
Board of Directors comprising six members in total.
Commenting on this transaction Ruben Vardanian, Chairman and CEO
of the Troika Dialog Group said: "My partners and I at Troika
Dialog are delighted to take the relationship with our colleagues
at Standard Bank, with whom we already have a long term business
collaboration, to a new level and to engage with a leading global
house with world class expertise in the emerging markets. We
believe it will prove a winning combination to develop the
business in Russia as well as expand our presence to new markets
and diversify our client offering."
Bloomberg News relates Troika founder and Chairman Ruben Vardanian
in a Bloomberg Television interview on Friday said, "We want to
use this momentum to grow or buy banks in a troubled situation."
According to Bloomberg News, Mr. Vardannian, who now owns about 40
percent of Troika, said Troika and Standard will "explore new
business areas and geographies," in particular commercial banking,
debt financing and commodity trading."
About Standard Bank
Standard Bank Group – http://www.standardbank.com/–- is one of
the big four full-service South African banks. The group operates
in a range of banking and related financial services. The group
has a wide representation which spans 17 African countries and 20
countries outside of Africa with an emerging markets focus.
Standard Bank has 694 branches in South Africa and 323 in the rest
of Africa.
Standard Bank Group is listed on the JSE Limited, share code SBK
and has a December year end. The group employs more than 50 000
(including Liberty) people worldwide.
Standard Bank's equity is widely spread. At June 2008, Industrial
and Commercial Bank of China (ICBC) held 20% followed by The
Public Investment Corporation holding 12% and Old Mutual Group 4%
of the group's shares in issue.
About Troika Dialog
Founded in 1991, Troika Dialog –- http://www.troika.ru/–-
is the leading independent full service integrated investment bank
and asset management firm in Russia. The Group's business
consists of securities sales and trading, investment banking,
private wealth and asset management, retail distribution and
alternative investments. Troika Dialog's operations are located
in 24 cities across Russia plus offices in London, New York, Kyiv,
Almaty and Nicosia. Troika's clients include leading Russian and
international companies, financial institutions, government
agencies and high net worth individuals. As at September 30,
2008, Troika had total shareholders funds of US$558 million and
total assets in excess of US$5.5 billion under US GAAP audited
consolidated financial statements. Currently, the group employs
approximately 1150 and is privately owned by 109 partners.
* * *
As reported in the TCR-Europe on Dec. 15, 2008, Standard & Poor's
Ratings Services said that it lowered its long-term counterparty
credit rating on Troika Dialog Group Ltd. to 'B+' from 'BB-' and
its Russia national scale rating to 'ruA' from 'ruAA-'. The
outlook remains negative.
At the same time, S&P's affirmed its 'B' short-term counterparty
credit rating on the institution, the holding company of Russia's
Troika Dialog group.
TRUST A 3: Creditors Must File Claims by April 28
-------------------------------------------------
Creditors of OJSC Construction Trust A 3 (TIN 0257006734) have
until April 28, 2009, to submit proofs of claims to:
I. Ponomareva
Insolvency Manager
Post User Box 79
Ufa
450073 Bashkortostan
Russia
The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A07–7839/08-G-SVI.
The Debtor can be reached at:
OJSC Construction Trust A 3
Internatsional’naya St. 126
Birsk
452455 Bashkortostan
Russia
UC RUSAL: Gets 2-Month Reprieve on US$14 Bln Debt
-------------------------------------------------
United Company RUSAL said it has signed a standstill agreement in
relation to the restructuring of its debt to the international
lending banks. The standstill will be effective for a period of
two months with the possibility of extension for a further month
and will provide RUSAL with additional liquidity, the company said
in a statement Friday.
The agreement covers more than 30 transactions, including
syndicated and bi-lateral loan agreements, bank guarantees and
letters of credit, which involve more than 70 banks, according to
the statement.
The agreement obtained support from majority of RUSAL's
international lending banks and Russian lenders as well, the
company's statement said.
At present, RUSAL's debt is US$14 billion, including US$7.4
billion owed to its international banks.
Credit Suisse Group, BNP Paribas SA, Merrill Lynch & Co., ABN Amro
Holding NV, Citigroup Inc., Natixis, Commerzbank AG, ING Groep NV
and Calyon are among Rusal’s creditors, according to data compiled
by Bloomberg.
In December 2008, RUSAL initiated a dialogue with its
international lending banks who formed a coordinating committee to
continue discussions with the Company and its advisers about
potential amendments of the Company's credit facilities in view of
the situation in the aluminum market.
The agreement follows RUSAL's recent comprehensive programme
designed to reduce costs, optimize the production process, cut
production costs and increase the overall efficiency of the
business.
"We are pleased that our lenders have endorsed our pro-active
steps to address the exceptional trading conditions and the
current global economic crisis. The agreement highlights the
long-term support that exists for RUSAL amongst the international
banks and the Russian financial community and demonstrates the
constructive nature of the ongoing negotiations between RUSAL and
its lenders," said Oleg Deripaska, the CEO of RUSAL.
About UC RUSAL
Headquartered in Moscow, Russia, United Company RUSAL ---
http://www.rusal.com/--- is an aluminum producer. Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite. Its aluminum business
include packaging and foil operations in addition to a network of
smelters. Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit. RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.
=========
S P A I N
=========
CABLEUROPA SA: Fitch Cuts Long-Term Issuer Default Rating to 'B'
----------------------------------------------------------------
Fitch Ratings has downgraded Spain-based Cableuropa S.A.'s Long-
term Issuer Default rating to 'B', from 'B+' and assigned a
Negative Outlook. At the same time the agency has downgraded
Cableuropa's senior secured bank facility to 'BB-' from 'BB' and
its high-yield bonds (issued by ONO Finance Plc and ONO Finance
II) to 'CCC' from 'B-' (B minus). The Short-term IDR of 'B' is
affirmed. Cableuropa is the principal cable operator in Spain,
providing broadband, telephony and multi-channel TV to
approximately 1.9 million customers. In the nine months to
September 2009 the company generated sales of EUR1.2 billion and
EBITDA of EUR528 million (reflecting a margin of 43.8%).
The rating action takes into account the refinancing risk
associated with its EUR3.5 billion senior bank facility, which
Fitch considers will need to be agreed (or at least have some
easing in the 2010 and 2011 repayment profile) by early-to-mid
2010 to avoid liquidity concerns later in that year. While the
company's cable operations in Spain are proving resilient in the
face of deteriorating economic conditions, growth prospects and
the associated potential to de-lever, are in Fitch's view now
likely to be limited through 2010. The business has also yet to
be fully tested, given that economic conditions in Spain are
likely to remain difficult for a protracted period.
Continued cost restructuring and the negative working capital
flows associated with capex cuts are likely to constrain free cash
flow through 2009, albeit that Fitch recognizes the cash
generating potential of a business with 1.9 million subscribers
and good track record of growing the number of services taken per
customer. This ability has enabled Cableuropa to sustain some of
the strongest average revenue per user and revenue generating unit
per customer (RGU / customer) metrics across the European cable
sector. With the company no longer able to rely on revenue growth
driven by network build, it will be imperative for Cableuropa to
sustain these metrics and importantly to manage the rate of
customer churn, which has crept up in recent quarters as the
downturn has taken hold.
Fitch notes that (based on results to Sept 08) it expects the
company to meet its published targets for 2008 (when it announces
full year earnings next week) and that without the scale and
immediacy of refinancing concerns, ratings might not have come
under the pressure they have. These concerns, as well as the
potential downside risk to the 2009 outlook, suggest credit risk
is better reflected by current ratings levels.
The Negative Outlook reflects the company's refinancing concerns.
Clear visibility that the company can refinance or at a minimum
reschedule its repayment schedule through 2012 (combined with on-
budget performance), would be needed in order for ratings to
stabilize at the current level. Fitch notes that Cableuropa's
bank group is relatively smaller than some other cable companies
such as Virgin Media, which has successfully renegotiated its bank
facilities (post the collapse of Lehman Brothers). This feature
should in Fitch's view help the refinancing process. Clarity
around this issue would be expected by 4Q09 / 1Q10 if further
negative action is to be avoided, as is a leverage (net debt /
annualized EBITDA) metric that remains below 6.0x throughout 2009
and performs with a degree of headroom within the reducing metric
prescribed by the bank covenant (which ratchets down to 5.95x by
4Q09). Progress in developing a materially positive FCF profile
(not expected before 2010) could potentially lead to a more
positive view of the IDR.
UCI 19: S&P Assigns 'CCC-' Rating on Class E Notes
--------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to the floating-rate notes to be issued by Fondo de
Titulización de Activos UCI 19.
At closing, UCI 19 will acquire credit rights backed by mortgage
loan participations.
These will ultimately be backed by a pool of first-ranking
mortgages secured over owner-occupied residential properties in
Spain. To fund this purchase, UCI 19 will issue five classes of
floating-rate notes.
This transaction will be similar, in terms of the type of assets
being securitized, to previous mortgage securitizations undertaken
by UCI. In terms of the structure, an asset swap and a cambio de
casa deposit will be added to the structure for UCI 19.
S&P will publish a full presale for this transaction in due
course.
Ratings List
Fondo de Titulización de Activos UCI 19
EUR1,029 Million Floating-Rate Notes
Prelim. Prelim.
Class rating amount (Mil. EUR)
----- ------- -----------------
A AAA 875
B A 60
C BBB 35
D BB 30
E CCC- 29
=====================
S W I T Z E R L A N D
=====================
AWAC ELEKTRONIK: Creditors Must File Proofs of Claim by March 16
----------------------------------------------------------------
Creditors owed money by LLC Awac Elektronik are requested to file
their proofs of claim by March 16, 2009, to:
Alfred Wendelspiess
Grienmattweg 8
4450 Sissach
Switzerland
The company is currently undergoing liquidation in Sissach. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 15, 2008.
FAHRSCHULE BICHSEL: Creditors Have Until March 31 to File Claims
----------------------------------------------------------------
Creditors owed money by JSC Fahrschule Bichsel are requested to
file their proofs of claim by March 31, 2009, to:
Adele Buhlmann
Stutz 6
6005 Luzern
Switzerland
The company is currently undergoing liquidation in Luzern. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 6, 2009.
KIRTU LLC: Deadline to File Proofs of Claim Set March 26
--------------------------------------------------------
Creditors owed money by LLC Kirtu are requested to file their
proofs of claim by March 26, 2009, to:
Marc S. Daetwyler
Rotfluhstrasse 91
Mail Box: 275
8702 Zollikon
Switzerland
The company is currently undergoing liquidation in Zollikon. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 23, 2008.
NETZTELESERVICES LLC: Deadline to File Claim is on March 23
-----------------------------------------------------------
Creditors owed money by LLC Netzteleservices are requested to file
their proofs of claim by March 23, 2009, to:
Andrzej Neumann
Im Sihlhof 19
8134 Adliswil
Switzerland
The company is currently undergoing liquidation in Adliswil. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 17, 2008.
RESTAURANT FREIHOF: Creditors' Proofs of Claim Due by June 25
-------------------------------------------------------------
Creditors owed money by LLC Restaurant Freihof Dinhard are
requested to file their proofs of claim by June 25, 2009, to:
LLC Contresa
Im Winkel 6
8474 Dinhard
Switzerland
The company is currently undergoing liquidation in Dinhard. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 15, 2008.
UBS AG: Moody's Downgrades Ratings on US$10 Mil. Notes to 'Caa2'
----------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of one class of notes issued by UBS AG, acting through its Jersey
branch. The notes were issued under the UBS AGUS$45,000,000,000
Euro Note Programme.
The transaction is a static synthetic collateralized debt
obligation transaction referencing a portfolio of corporate
entities. The rating action is a response to credit deterioration
in the reference portfolio due to general corporate deterioration.
A significant proportion of the assets are now rated sub-
investment grade.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for Corporate Synthetic CDOs as described in Moody's Special
Reports below:
-- Moody's Approach to Rating Corporate Collateralized Synthetic
Obligations (December 2008)
The rating action is:
UBS AG (Jersey Branch):
(1) Series 3509 US$10,000,000 STERN 2006-02-24 Floating Rate
Notes due March 20, 2011
-- Current Rating: Caa2
-- Prior Rating: Baa2
-- Prior Rating Date: 28 March 2006, Assigned Baa2
WETEGE LLC: March 17 Set as Deadline to File Claims
---------------------------------------------------
Creditors owed money by LLC WeTeGe are requested to file their
proofs of claim by March 17, 2009, to:
JSC Buhler Treuhand
Kirchweg 22
8750 Glarus
Switzerland
The company is currently undergoing liquidation in Glarus. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Feb. 22, 2008.
=============
U K R A I N E
=============
ALPHA BUILDING: Creditors Must File Claims by March 21
------------------------------------------------------
Creditors of LLC Alpha Building Set (EDRPOU 33882191) have until
March 21, 2009, to submit proofs of claim to:
D. Rybin
Insolvency Manager
Office 172
Feodosiya St. 4
Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 49/37-?.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy St. 44-b
01030, Kiev
Ukraine
The Debtor can be reached at:
LLC Alpha Building Set
Kharkov highway St. 144-B
02091 Kiev
Ukraine
COMPANY INDUSTRIAL: Creditors Must File Claims by March 20
----------------------------------------------------------
Creditors of LLC Company Industrial (EDRPOU 33570901) have until
March 20, 2009, to submit proofs of claim to:
A. Rossokha
Insolvency Manager
Post Office Box 4248
69063 Zaporozhye
Ukraine
The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 12/214/08-25/25/09.
The Court is located at:
The Economic Court of Zaporozhye
Shaumian St. 4
69001 Zaporozhye
Ukraine
The Debtor can be reached at:
LLC Company Industrial
Troleybusnaya St. 36
69008 Zaporozhye
Ukraine
HETMAN LLC: Creditors Must File Claims by March 20
--------------------------------------------------
Creditors of LLC Hetman (EDRPOU 31962723) have until March 20,
2009, to submit proofs of claim to:
L. Orletskaya
Insolvency Manager
Third Polevoy Lane 6
Zhitomir
Ukraine
The Economic Court of Zhitomir commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 3/99-B.
The Court is located at:
The Economic Court of Zhitomir
Putiatinsky square 3/65
10002 Zhitomir
Ukraine
The Debtor can be reached at:
LLC Hetman
Rylsky St. 10
Popelnia
13500 Zhitomir
Ukraine
IKAR-AGRO LLC: Creditors Must File Claims by March 21
-----------------------------------------------------
Creditors of LLC Ikar-Agro (EDRPOU 32957515) have until March 21,
2009, to submit proofs of claim to:
S. Benediuk
Insolvency Manager
Post Office Box 157
03110 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 23/35-?.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy St. 44-b
01030, Kiev
Ukraine
The Debtor can be reached at:
LLC Ikar-Agro
Izium St. 7
03039 Kiev
Ukraine
INSTRUMENTAL LLC: Creditors Must File Claims by March 21
--------------------------------------------------------
Creditors of LLC Instrumental (EDRPOU 32659302) have until
March 21, 2009, to submit proofs of claim to:
S. Benediuk
Insolvency Manager
Post Office Box 157
03110 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 23/37-?.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy St. 44-b
01030, Kiev
Ukraine
The Debtor can be reached at:
LLC Instrumental
40 Years of October St. 100/2
03127 Kiev
Ukraine
PRODIVILANCE-T LLC: Creditors Must File Claims by March 21
----------------------------------------------------
Creditors of LLC Prodivilance-T (EDRPOU 35507538) have until
March 21, 2009, to submit proofs of claim to:
S. Benediuk
Insolvency Manager
Post Office Box 157
03110 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 23/36-?.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy St. 44-b
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC Prodivilance-T
Bulgakov St. 16
03134 Kiev
Ukraine
SEEDS KOLOS: Creditors Must File Claims by March 20
---------------------------------------------------
Creditors of LLC Seeds Kolos Growth And Realization Corporation
(EDRPOU 32021566) have until March 20, 2009, to submit proofs of
claim to:
A. Maksimov
Insolvency Manager
Post Office Box 85
01030 Kiev
Ukraine
The Economic Court of Ternopol commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 8/B-1092.
The Court is located at:
The Economic Court of Ternopol
Prince Ostrozhsky St. 14-A
46000 Ternopol
Ukraine
The Debtor can be reached at:
LLC Seeds Kolos Growth and
Realization Corporation
Yuriampil
Borschevsky
48733 Ternopol
Ukraine
SODRUZHESTVO CJSC: Creditors Must File Claims by March 21
---------------------------------------------------------
Creditors of CJSC Sodruzhestvo Subsidiary Company Petroleum-
Service (EDRPOU 31827509) have until March 21, 2009, to submit
proofs of claim to:
O. Glukhovsky
Insolvency Manager
Moscow St. 54
73000 Herson
The Economic Court of Herson commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. 5/222-B-08.
The Court is located at:
The Economic Court of Herson
Gorky St. 18
73000 Herson
Ukraine
The Debtor can be reached at:
CJSC Sodruzhestvo Subsidiary
Company Petroleum-Service
Golaya Pristan
Herson
Ukraine
VERSTATOLIV LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Dneprovsky Foundry and Metallurgical Company
Verstatoliv (EDRPOU 33338309). The Temporary Insolvency Manager
is T. Daskovskaya
The Court is located at:
The Economic Court of Dnepropetrovsk
Kujbishev St. 1a
49600 Dnepropetrovsk
Ukraine
The Debtor can be reached at:
LLC Dneprovsky Foundry and
Metallurgical Company Verstatoliv
Krasnozavodskaya St. 14
Dnepropetrovsk
Ukraine
===========================
U N I T E D K I N G D O M
===========================
AURORA FASHIONS: In Talks with Retail Landlords
-----------------------------------------------
The Daily Telegraph's James Hall reports that Aurora Fashions is
calling on the landlords of up to 90 of its stores to reduce their
terms to prevent it from shutting the outlets.
The report relates the group is also in negotiations with the
landlords of all its 900 UK stores to pay rent on a monthly basis,
as opposed to quarterly.
Citing property sources, the report discloses the group is asking
certain landlords if it can pay rents equivalent to 10pc of the
store's turnover, while it is asking other landlords for a four-
month rent-free period starting this month.
"We are saying to the landlords, 'You decide: we don't want to
close this store, so please help us keep it open'. It changes
from case to case," the report quoted Mike Shearwood, Aurora's
deputy chief executive, as saying.
On March 2, 2009, Neville Kahn, Lee Manning and Phil Bowers of
Deloitte, the business advisory firm, were appointed joint
administrators over Mosaic Fashions Limited, Mosaic Fashions
Finance Limited and a number of other Group companies, including:
* Warehouse Fashion Limited
* Oasis Stores Limited
* Coast Stores Limited
* Karen Millen Limited
* Anoushka G Fashions Limited
* Principles Retail Limited
* The Shoe Studio Group
Phil Bowers, joint administrator, said "As part of the
restructuring of the group we have concluded an immediate sale of
the UK business and assets of Warehouse, Oasis, Coast, Karen
Millen, Anoushka G and the overseas shares of Karen Millen to
Aurora Fashions, a new company jointly owned by Kaupthing bank and
former management of Mosaic. This sale secures the future of
these brands and provides funding going forward. The
restructuring means 8,700 jobs in these businesses have been
rescued by Aurora Fashions, who will continue to trade in 647
concessions and 268 stores across the UK."
B&P LIGHTBRIGADE: Goes Into Administration; Buyer Sought
--------------------------------------------------------
Tom Hall at PrintWeek reports that B&P Lightbrigade, the Surrey-
based digital printer and supplier, has gone into administration.
The report relates Nick O'Reilly and Phil Armstrong of London-
based Vantis Business Recovery Services were appointed as joint
administrators last week following a drop in trade at the company,
which underwent a MBO last summer.
Mr. O'Reilly, as cited by the report, said the business will
continue to trade while a buyer is being sought.
"We have carried out targeted marketing activities and have
received enquiries from 15 interested parties. We are now in the
process of trying to ensure that the best value offer for the
business is achieved," the report quoted Mr. O'Reilly as saying.
The report discloses due to cash-flow pressures, administrators
were forced to close the company's dispatch center in Manchester,
resulting in the loss of six jobs.
BANK OF AMERICA: Merrill Lynch Discovers Irregularity in Trading
----------------------------------------------------------------
Marietta Cauchi at The Wall Street Journal reports that Merrill
Lynch said on Friday that it had informed regulators that it found
an irregularity during a recent review of its trading positions.
The New York Times relates that risk officers discovered three
weeks ago that a London currency trader who had recorded a trading
profit of US$120 million for the fourth quarter may instead have
lost a large amount.
The Financial Times relates that Merrill Lynch has suspended the
currency trader after he ran up suspected losses of more than
US$400 million and trades on Norwegian and Swedish currencies went
wrong. According to Luke Baker at Reuters, the losses will cause
more financial headaches for Bank of America. Merrill Lynch said
in a statement, "Senior managers of the business are focused on
the issue and believe the risks surrounding possible losses are
under control."
The New York Times notes that Bank of America was probing whether
Merrill Lynch had delayed booking trading losses until hefty
bonuses were approved and the buyout deal was sealed. WSJ relates
that unexpected losses at Merrill Lynch have hurt Bank of
America's share price and spurred calls for the resignation of CEO
Kenneth Lewis.
Reuters relates that Irish regulators said that they were
investigating the "mispricing of trades" at Merrill Lynch's London
branch. The regulators, says the report, heard of the issue in
February. The report states that Ireland's regulator said it was
liaising with the financial authorities in Britain and the U.S.
Merrill Lynch, WSJ states, said that it was working with
authorities to investigate the issue.
About Bank of America
Bank of America is one of the world's largest financial
institutions, serving individual consumers, small and middle
market businesses and large corporations with a full range of
banking, investing, asset management and other financial and risk-
management products and services. The company provides unmatched
convenience in the United States, serving more than
59 million consumer and small business relationships with more
than 6,100 retail banking offices, nearly 18,700 ATMs and award-
winning online banking with nearly 29 million active users.
Following the acquisition of Merrill Lynch on January 1, 2009,
Bank of America is among the world's leading wealth management
companies and is a global leader in corporate and investment
banking and trading across a broad range of asset classes serving
corporations, governments, institutions and individuals around the
world. Bank of America offers industry-leading support to more
than 4 million small business owners through a suite of
innovative, easy-to-use online products and services. The company
serves clients in more than 40 countries. Bank of America
Corporation stock is a component of the Dow Jones Industrial
Average and is listed on the New York Stock Exchange.
The bank needed the government's financial help in completing its
acquisition of Merrill Lynch.
Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth
management, capital markets and advisory companies with offices in
40 countries and territories. As an investment bank, it is a
leading global trader and underwriter of securities and
derivatives across a broad range of asset classes and serves as a
strategic advisor to corporations, governments, institutions and
individuals worldwide. Merrill Lynch owns approximately half of
BlackRock, one of the world's largest publicly traded investment
management companies with more than US$1 trillion in assets under
management. Merrill Lynch's operations are organized into two
business segments: Global Markets and Investment Banking (GMI) and
Global Wealth Management (GWM).
BRITISH AIRWAYS: S&P Cuts Corporate Credit Rating to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on U.K.-based British Airways PLC to
'BB+' from 'BBB-'. At the same time, the rating remains on
CreditWatch with negative implications, where it was originally
placed on Jan. 27, 2009.
"The downgrade reflects our view of a significant worsening in the
trading outlook for BA as the economic downturn takes hold. As a
result of the more challenging industry environment, S&P believes
that BA's financial risk profile and credit measures are no
longer, nor are likely to be, appropriate for an investment-grade
rating over the next several years," said Standard & Poor's credit
analyst Leigh Bailey.
The review for possible downgrade reflects S&P's views of the
sharp level of deterioration in the operating environment for
airlines, the depth and duration of the recession, and the extent
of the effect of this downturn on BA's business and financial risk
profiles. Based on current information, any further downgrade, if
appropriate, would be limited to one notch.
S&P expects deteriorating market conditions to result in operating
losses for BA, at current exchange rates, of about GBP150 million
for the current financial year ending March 31, 2009. BA
cautioned that for financial 2010 it is targeting a comparable
level of operating performance before any severance costs.
Targeted reductions of GBP220 million in underlying nonfuel costs
are factored into BA's guidance for that year.
In S&P's opinion, losses of this magnitude and the associated cash
outflows related to restructuring are likely to result in
materially lower cash flow generation over the next two years and
a weaker financial risk profile than S&P had originally
anticipated. Based on BA's current guidance, absent other
developments, S&P anticipate funds from operations to adjusted
debt to fall to about 15%-20%. BA's ability to sustain a target
ratio of FFO to adjusted debt of about 30% is, in S&P's view,
sufficiently challenged to justify a lowering of the rating.
BA has reported a progressive weakening of demand in recent
quarters, most notably for high-yielding premium traffic. Slowing
demand appears to be having the most effect on important
transatlantic and Asia-Pacific routes. At the same time, BA
reports that rising costs due to a significant rise in fuel
expenses and the weakness of the British pound sterling are also
contributing to a significant decline in profitability. In the
nine months ended Dec. 31, 2008, BA reports that operating profit
decreased by 88% to GBP89 million from GBP744 million in the same
period of 2007.
Lower levels of business activity and an increased focus on
reducing corporate travel costs are likely in S&P's view to
contribute to a weak outlook for premium segment revenues, which
is a core profit generator for many full-service network carriers
such as BA. In addition, the sharp fall of the U.K. pound
sterling in the past year against the U.S. dollar and other
currencies is a major issue. S&P see the weak pound as further
dampening domestic demand for foreign travel and raising the U.S.
dollar based part of BA's costs. This, in S&P's view, far
outweighs the effects of the sharp decline in fuel prices from
their mid-2008 highs. Moreover, BA also has significant fuel
hedging contracts in place, which will delay the positive effects
of falling fuel prices on its cost base.
BA's financial profile is likely to come under increased pressure
from the challenging trading environment and a subsequent slowdown
in passenger growth. In addition, S&P believes that foreign
exchange differences will not only affect operating revenues, they
will also have a significant negative impact on BA's debt levels.
Given the extremely uncertain outlook and BA's revisions to profit
guidance in January and March 2009, S&P believes that further
deterioration relative to current guidance cannot be excluded.
BA reports that it also remains exposed to a rising pension
deficit, which is subject to an actuarial valuation in the coming
months. At present, S&P factors in a net pension deficit of
GBP582 million in line with BA's reported position under
International Financial Reporting Standards as of Sept. 30, 2008.
Given significant movement in asset values, a material rise in the
reported pension deficit could be possible once the actuarial
valuation is completed later this year. Although S&P's analysis
will continue to focus on the cash flow impact of servicing its
pension deficit, a material increase in net pension liabilities
will likely adversely affect S&P's leverage calculations.
The ratings on BA are constrained by S&P's view of the cyclicality
of the airline industry, volatile fuel costs, and profit
concentration at BA's transatlantic network. As at Sept. 30,
2008, BA had GBP3.3 billion of total on-balance-sheet debt. The
ratings are supported by S&P's view of BA's strong competitive
position as the main airline at London Heathrow Airport, extensive
route network, good profit track record, and sound liquidity base.
S&P will review the negative effects the sharp economic downturn
is likely to have on BA's credit profile. S&P's review will
predominantly focus on S&P's near- and medium-term expectations
for the airline trading environment, BA's projected operating
performance, the group's ability to adapt to the downturn
operationally and financially, and S&P's outlook for BA's
financial risk profile.
S&P understands that BA is in advanced negotiations over a
potential merger with Spanish airline Iberia. Based on current
information, S&P will not factor this into its current ratings or
outlook.
CATER RECON: Appoints Joint Liquidators from Tenon Recovery
-----------------------------------------------------------
Steven Philip Ross and Ian William Kings of Tenon Recovery were
appointed joint liquidators of Cater Recon Ltd. on Feb. 10, 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
CLARIS LTD: S&P Raises Ratings on EUR50 Mil. Notes from 'CCC'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'AAA' from 'CCC' and
removed from CreditWatch negative its credit rating on the EUR50
million leveraged floating-rate credit-linked notes series 64/2006
issued by Claris Ltd. following a restructuring.
S&P rated this series 'CCC/Watch Neg' before the restructuring.
It was previously exposed to market-value risk, since an unwind
event could occur if the weighted-average spread of the reference
portfolio exceeded a predetermined trigger spread. The rating was
lowered since closing due to the increased risk of breaching the
trigger spread as credit default swap spreads widened.
The rating action follows the full deleveraging of the notes.
This means that investors are no longer exposed to potential
market-value risk from movements in credit default swap spreads.
S&P's future analysis will focus only on the portfolio's credit
risk.
CLERICAL MEDICAL: S&P Cuts Ratings on Jr. Sub. Debt to 'BB+'
------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit and insurer financial strength ratings on
U.K.-based life assurers Clerical Medical Investment Group Ltd.
and Scottish Widows PLC to 'A+' from 'AA-'. The outlook is
stable.
The rating actions were triggered by rating action on the parent
of both entities, Lloyds Banking Group PLC (LBG; A/Stable/A-1).
As core entities of LBG, rating actions on both CMIG and SW mirror
those on the core banking entities, Lloyds TSB Bank PLC
(A+/Stable/A-1) and Bank of Scotland PLC (A+/Stable/A-1).
At the same time, the ratings on deeply subordinated debt issued
by SW and Clerical Medical Finance PLC were downgraded. Debt
issued by CMF is guaranteed by CMIG. The ratings on CMF's
EUR400 million dated junior subordinated debt and CMIG's
GBP200 million perpetual subordinated debt were lowered to 'A-'
from 'A'. In addition, the ratings on CMF's EUR750 million
perpetual junior subordinated debt and SW's GBP560 million
perpetual junior subordinated debt were lowered to 'BB+' from 'A'.
The downgrade of the two issues by one notch to 'A-' reflects the
one-notch change in the rating on CMIG, maintaining standard
notching. The downgrade on two issues to 'BB+' mirrors the
downgrade of certain hybrid capital instruments issued by banking
entities within LBG.
The difference in notching between the ratings on the debt issues
of CMF reflects S&P's opinion of the differing deferral
characteristics of each debt issue apparent from S&P's review of
the documentation. In the case of the 'A-' rated issues, CMIG has
limited ability to defer payments as coupon deferral is restricted
to mandatory triggers upon specified remote solvency triggers. In
the case of the 'BB+' rated issues, which have optional deferral
triggers, CMIG and SW have more discretion over the coupon
deferral.
"In our opinion, the risk of optional coupon deferral on these
issues is aligned with our view on certain hybrid securities
issued by banking entities within LBG, where S&P views the risk of
deferral as having increased materially due to the prospect of a
loss in 2009, potential governmental intervention, and precedents
elsewhere in the banking industry," said Standard & Poor's credit
analyst Stephen Hadfield.
S&P aims to reassess the CreditWatch placement of these hybrid
capital instruments within the next 90 days, following a review of
the implications of any capital restructuring of LBG arising as
part of the government's asset protection scheme and the
resolution of state aid approval. Any further downgrade could be
by more than one notch.
ELITE BAKERY: Brings in Joint Liquidators from Tenon Recovery
-------------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Elite Bakery Ltd. on Feb. 18, 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
FAIRWAY CONTRACTING: Taps Joint Liquidators from Baker Tilly
------------------------------------------------------------
Adrian David Allen and Philip Edward Pierce of Baker Tilly
Restructuring and Recovery LLP were appointed joint liquidators of
Fairway Contracting (U.K.) Ltd. on Feb. 13, 2009, for the
creditors' voluntary winding-up proceeding.
The company can be reached through Baker Tilly Restructuring and
Recovery LLP at:
2 Whitehall Quay
Leeds
LS1 4HG
England
HAMILTON ACCIES: "Absolutely Insolvent," Lord Carloway Says
-----------------------------------------------------------
Martin Williams at The Herald reports that Court of Session Judge
Lord Carloway has declared football club Hamilton Accies
insolvent.
The report relates Lord Carloway made the judgment in ordering the
arrestment of GBP40,000 from Hamilton as security against a
wrongful dismissal claim being made by the SPL club's former
assistant manager, John "Cowboy" McCormack.
Lord Carloway, as cited by the report, said the club has conceded
that Mr. McCormack has a prima facie case against them. The judge
stressed that there "is no doubt" the club are "absolutely
insolvent, in the sense that their liabilities well exceed their
assets", the report recounts.
Citing papers submitted to the court, the report discloses the
club owed GBP1,639,463 to creditors including directors and the
providers of affiliate loans totaling GBP1.1 million, which they
say are not expected to be repaid in the foreseeable future.
The report states the company's latest accounts for the year
ending June 30, 2007, contained the note: "The company is
dependent on the continuing support of its creditors, all of whom
have intimated their willingness to provide such. Should any of
its creditors fail to provide this continuing support, it is
unlikely that the company could continue as a going concern."
However, chairman Ronnie MacDonald, who owns more than 90% of the
shares, insisted the club's finances were in a "sound" state and
that he had no reason to seek return of cash he had lent.
According to the report, the legal documents presented by the club
claimed that they had an annual turnover of around GBP2.5 million
and enjoyed "healthy revenues, which have been very materially
increased by their promotion to the Premier League".
However, Lord Carloway, the report recalls, concluded "It is
impossible to predict what their future financial position may be,
dependent as it is on the goodwill of not only Mr McDonald, but HM
Revenue & Customs."
"In these circumstances, the court cannot find that it is no
longer satisfied that the requisite risk exists," the report
quoted Lord Carloway as saying.
HIGHER EDUCATION: Fitch Cuts Ratings on Two Note Classes to 'BB'
----------------------------------------------------------------
Fitch Ratings has downgraded The Higher Education Securitized
Investment Series No.1 plc.'s (Thesis) UK student loan backed
class A3 and A4 notes and affirmed Thesis' class A2 notes. All
the notes have been removed from Rating Watch Negative and
assigned Outlooks:
-- Class A2 GBP47.6 million notes: affirmed at 'AAA'; removed
from RWN; assigned a Stable Outlook
-- Class A3 GBP29.5 million notes: downgraded to 'BB' from
'BBB'; removed from RWN; assigned a Negative Outlook
-- Class A4 GBP7.9 million notes: downgraded to 'BB' from 'BBB';
removed from RWN; assigned a Negative Outlook
Thesis is a securitization of floating-rate student loan
receivables, originated in the United Kingdom by the UK
government-owned Student Loan Company Limited.
The notes were placed on Rating Watch Negative on July 16, 2007
following the announcement of a change of servicer, from SLC to
Link Financial. The transfer of servicing has now been
satisfactorily completed and all notes have been removed from RWN.
As of the end of January 2009, the class A2 notes benefited from
credit enhancement of GBP209.3 million (81.5%) whereas the class
A3 and A4 notes benefited from CE of only GBP26.6 million (10.3%).
The scale of the difference relates to the fact that the A3 and A4
notes are subordinate to the GBP145.3 million accrual note, which
funds the RPI which accrues on loans in deferment
The downgrades with respect to the class A3 and A4 notes reflect
Fitch's concerns with respect to the ability of the transaction's
future cash flows to cover repayments due under the notes. Fitch
notes that as a result of losses incurred to date, available
subordination to the class A3 and A4 notes has been depleted and
currently stands at GBP26.6 million relative to the receivables
balance of GBP256.8 million. As of January 2009, the Principal
Deficiency Ledger stood at GBP37.6 million; with GBP30 million of
the receivables classified as having arrears, of which GBP24.3
million were in repayment.
In Fitch's opinion, the full repayment of the class A3 and A4
notes is dependent upon the continuation of relatively benign
performance trends. In its analysis Fitch applied a number of
scenarios by adjusting these parameters.
i) The rate at which receivables move from 'deferred' status to
'repaying' status. In Fitch's opinion, the higher the rate at
which receivables move to 'repaying' status is a credit negative,
as such accounts are exposed to the risk of losses. Conversely,
receivables that remain in 'deferred' status (with no arrears) are
covered by the Government repayment after 25 years.
ii) The level of receivables in the 'deferred with arrears'
category. Loans of such status do not benefit from the Government
payment at 25 years unless the arrears are cleared in advanced of
such date.
iii) The rate at which receivables move from 'repaying' status to
a loss. A loss is declared at 24 months of delinquency. A high
loss rate will have a negative impact upon the transaction,
further reducing available subordination. There is the
possibility that recoveries could be received from write-offs,
however, Fitch is concerned that the servicing agreement provides
little incentive for the servicer to actively pursue such account
holders.
The class A2 notes are able to withstand a high degree of
performance deterioration. However, in Fitch's opinion the level
of credit enhancement available to the class A3 and A4 notes is
not adequate to support the level of performance deterioration
that would be commensurate with a 'BBB' stress. As of January,
the total securitized assets were GBP256.8 million, compared to a
total liability of GBP294.5 million. The enhancement available to
the class A3 and A4 notes, currently reduced to GBP26.6 million,
is less than the GBP30 million of receivables currently classified
as in 'arrears'. Consequently, Fitch has downgraded the class A3
and A4 notes, and assigned them a Negative Outlook. In the event
of performance deterioration, further negative rating action may
be applied to the class A3 and A4 notes.
INSCALE MEASUREMENT: Appoints Liquidators from Tenon Recovery
-------------------------------------------------------------
Alexander Kinninmonth and Andrew Pear of Tenon Recovery were
appointed joint liquidators of Inscale Measurement Technology Ltd.
on Feb. 16, 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
LLOYDS BANKING: U.K. Gov't Provides US$367 Bln in Asset Insurance
-----------------------------------------------------------------
Andrew MacAskill and Jon Menon at Bloomberg News report Lloyds
Banking Group Plc obtained GBP260 billion (US$367 billion) in
state guarantees increasing the U.K. government's stake in the
bank to as much as 75 percent from 43 percent.
Under the agreement, Lloyds will pay GBP15.6 billion for asset
protection, or 5.2 percent of the insured assets, in the form of
non-voting shares, the report says citing the bank in a statement.
Lloyds also agreed to increase lending to businesses and
homeowners by GBP28 billion over the next 24 months, the report
relates.
In return, the report says Lloyds will get government insurance
for GBP74 billion of residential mortgages, GBP18 billion of
unsecured personal loans, GBP151 billion of corporate and
commercial loans and GBP17 billion of treasury assets.
The report relates Lloyds will be responsible for the initial
GBP25 billion of losses on the insured assets and will cover 10
percent of any additional losses, with the Treasury responsible
for the rest.
The government will also underwrite a GBP4 billion share sale and
convert existing preference shares into equity, the report
discloses.
According to Bloomberg News, about 83 percent of the assets Lloyds
is insuring came from HBOS Plc. Lloyds acquired HBOS's
deteriorating quality of loans when it bought the firm in a
government-brokered deal, the report says.
The report recalls in September, Lloyds agreed to buy HBOS for
about GBP7.7 billion as the government sought to prevent HBOS from
collapsing after credit markets froze. Last month, HBOS posted a
pretax loss of GBP7.5 billion, the report notes.
Right Deal
Reuters reports Lloyds chief executive Eric Daniels said the asset
protection scheme is good for investors as it will provide
protection against a weakening economy.
"We got the right deal for Lloyds shareholders," Mr. Daniels told
Reuters in an interview. "I think that with the (asset
protection) scheme we are tremendously well-capitalized in an
uncertain environment, and that's not a bad place to be."
Mr. Daniels said he would meet with shareholders today, Monday, to
discuss the agreement, Reuters relates.
The Lloyds board has unanimously backed the agreement, reached
early on Saturday after two weeks of negotiations with the
government, the bank said as cited by Reuters.
About Lloyds Banking Group PLC
Lloyds Banking Group Plc (LON:LLOY) –-
http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger. Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account. International business is conducted mainly in the United
States and continental Europe. Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.
LLOYDS TSB: S&P Cuts Sub. Hybrid Capital Instruments to 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit rating on Lloyds TSB Bank PLC and Bank of
Scotland PLC by one notch to 'A+' from 'AA-'. At the same time,
the short-term ratings were lowered to 'A-1' from 'A-1+'. In
addition, the long-term ratings on core life insurance
subsidiaries Scottish Widows PLC and Clerical Medical Investment
Group Ltd. were lowered to 'A+' from 'AA-'. Furthermore, the
long-term counterparty credit rating on the holding company,
Lloyds Banking Group PLC, was lowered to 'A' from 'A+'. The
short-term rating of 'A-1' was affirmed. The outlook on all these
entities is stable. S&P also lowered the ratings on certain
perpetual subordinated hybrid capital instruments issued by
banking entities within the LBG group to 'BB+' from 'A' and placed
them on CreditWatch with negative implications.
"The rating actions follow the announcement on Feb. 28, 2009, of
results for Lloyds TSB Group and HBOS PLC, which merged in January
to form LBG, and the prospect of stand-alone asset quality and
earnings that S&P see as materially weaker than S&P had previously
expected," said Standard & Poor's credit analyst Nick Hill.
"However, S&P note that negotiations with the U.K. Treasury are
continuing and S&P expects a substantial proportion of the group's
more troubled assets to benefit from the government's asset
protection scheme, reducing downside risk. S&P thinks this will
likely be accompanied by further capital." Last month, The Royal
Bank of Scotland Group PLC (A/Stable/A-1) announced that it would
receive a significant government capital injection relating to its
participation in the asset protection scheme.
"We view LBG as a highly systemically important institution, with
a strong franchise across the United Kingdom and in receipt of
material support from the state, and thus as a government-related
entity. For this reason, S&P now factor extraordinary government
support into the ratings," said Mr. Hill. Although the stand-
alone creditworthiness of LBG remains under review, S&P see it now
at least two notches below the counterparty credit rating.
As disclosed by LBG, LTSB made a statutory profit of only
GBP807 million in 2008, but this was significantly affected by
insurance volatility and other one-offs, and its underlying pretax
profit of GBP2.4 billion is creditable in S&P's view, given the
very difficult market conditions toward the end of the year. In
contrast, HBOS made a statutory pretax loss of GBP10.8 billion,
and an underlying pretax loss (excluding various one-off items and
goodwill impairment) of GBP8.5 billion. This was largely
attributable to a strong increase in impaired loans in its
corporate division, which was significantly higher than S&P had
expected.
Although the group reported a combined pro forma Core Tier 1 ratio
of 6.4%, and S&P estimate that the adjusted total equity/risk-
weighted asset ratio would likely be around the same level, the
rapid deterioration in the group's loan and investment portfolios
suggest to us that ratios may be further eroded in the short term
without further capital support. Indeed, LBG's own expectation of
a loss in 2009 underlines these risks, in S&P's view, and stands
in contrast to S&P's prior expectation of a moderate profit. S&P
believes that these factors combine to reduce LBG's stand-alone
financial profile.
"The stable outlook reflects our expectation that the combined
group will make a loss in 2009, mainly due to substantial further
asset quality issues and some margin pressure," said Mr. Hill.
"However, S&P expects government action to support LBG's
creditworthiness through further capital injections and downside
protection on problematic assets."
The ratings could be lowered in particular if S&P believes that
underlying earnings deteriorate to such an extent that a return to
profitability in the medium term appears remote. In this event,
external support may not, in S&P's view, be sufficient to justify
the current ratings. However, S&P's expectation of very
substantial government support limits the risk and indeed over
time S&P expect LBG's stand-alone creditworthiness to improve. A
positive rating action is currently unlikely given the deepening
recession, but is possible in the longer term should S&P see that
LBG returns to significantly improved profitability, realizes
substantial synergies, displays strong capital ratios, and
successfully runs-off the problematic assets.
S&P aims to reassess the CreditWatch placement of LBG's hybrid
capital instruments within the next 90 days following a review of
the implications of any capital restructuring arising as part of
the government's asset protection scheme and the resolution of
state aid approval.
"Yet, S&P still expect LBG to maintain coupon payments, S&P views
the risk of deferral as having increased materially due to the
prospect of a loss in 2009, potential governmental intervention,
and precedents elsewhere in the banking industry," said Mr. Hill.
MAINESIDE DEVELOPMENTS: Calls in Liquidators from Tenon Recovery
----------------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Maineside Developments Ltd. on Feb.
13, 2009, for the creditors' voluntary winding-up proceeding.
The company can be reached through Tenon Recovery at:
Tenon House
Ferryboat Lane
Sunderland
SR5 3JN
England
MINSTRELL LTD: Taps Joint Liquidators from Tenon Recovery
---------------------------------------------------------
Jeremy Woodside and Christopher Ratten of Tenon Recovery were
appointed joint liquidators of Minstrell Ltd. on Feb. 10, 2009,
for the creditors' voluntary winding-up proceeding.
The company can be reached through Tenon Recovery at:
Arkwright House
Parsonage Gardens
Manchester
M3 2LF
England
PRINCIPLES RETAIL: Buyer Not Found; 2,300 Jobs at Risk
------------------------------------------------------
The Associated Press reports that administrators for Principles
Retail Ltd. Failed to find a buyer for the chain, putting as many
as 2,300 jobs at risk.
"Given current market conditions, we have been unable to find a
suitable buyer to take the business on as a going concern," the
report quoted Lee Manning, joint admininstrator, as saying.
"Unfortunately there will be significant redundancies over the
coming weeks."
The report relates Mr. Manning said 66 of the company's stores
will close. The joint administrator disclosed 110 head office
staff have already lost their jobs, the report states.
Mr. Manning, as cited by the report, said Debenhams department
store chain will be taking on most of the company's stock, as well
as 121 concessions within its stores. He added further 172
concessions in other locations will also continue to operate "for
the time being".
The Principles brand trades from over 400 outlets of which 94 are
single stores and the remainder concession outlets.
On March 6, 2009, the Troubled Company Reporter-Europe reported
that according to Reuters, Deloitte said Monday last week it had
received expressions of interest for the business.
Times Online disclosed Debenhams, Sir Philip Green's Arcadia and
Peter Davies, who used to run Principles as chief executive of
Rubicon, were among the front runners for the business or its
assets.
However, Mr. Davies, as cited by Drapers, said it was now unclear
whether he would succeed in putting an appropriate bid together in
time to buy the chain from administrators Deloitte because of
competition from other parties and Deloitte's need to complete a
deal as quickly as possible.
"I was trying to buy it [Principles] and I am still trying to buy
it. But the timing of the administration may have screwed my
chances," Drapers quoted Mr. Davies as saying. "As a private
punter it takes time to put a logical offer in place and to
rebuild into the future. I would say it would normally take two
weeks to do that."
Drapers recalled Principles was first put up for sale February by
Mosaic. However, Mosaic collapsed into administration last week
before a deal could be completed, Drapers noted.
As reported in the Troubled Company-Reporter Europe, on March 2,
2009, Neville Kahn, Lee Manning and Phil Bowers of Deloitte, the
business advisory firm, were appointed joint administrators over
Mosaic Fashions Limited, Mosaic Fashions Finance Limited and a
number of other Group companies, including:
* Warehouse Fashion Limited
* Oasis Stores Limited
* Coast Stores Limited
* Karen Millen Limited
* Anoushka G Fashions Limited
* Principles Retail Limite
* The Shoe Studio Group
TRANSTECH SYSTEMS: Appoints Liquidators from Tenon Recovery
-----------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Transtech Systems Ltd. on Feb. 17,
2009, for the creditors' voluntary winding-up proceeding.
The company can be reached through Tenon Recovery at:
Tenon House
Ferryboat Lane
Sunderland
SR5 3JN
England
VANWALL FINANCE: S&P Cuts Ratings on Two Classes of Notes to Low-B
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class D, E, and F
notes issued by Vanwall Finance PLC due to a combination of
factors, including market-value declines and the vacant possession
value of the assets. The class A to C notes are unaffected.
The notes are backed by a senior ranking portion of a whole loan
secured by 31 properties (30 retail warehouses and a distribution
center), located across the U.K. and fully let to Toys "R" Us Ltd.
The outstanding loan (and note) balance is GBP353.2 million. This
loan is due to mature in April 2013 and the legal final maturity
of the notes is April 2016. The net income reported to us is
GBP30.68 million. S&P has carried out an asset-by-asset analysis
and S&P has recently inspected 10 properties in the portfolio.
The U.K. retail warehouse sector has experienced one of the
highest market-value declines of any real estate sector in the
U.K. S&P has taken the rating actions in light of this, as well as
the transaction's exposure to a single-tenant, the high swap
breakage costs that would be experienced in the current interest
rate environment if the loan is repaid or accelerated, and S&P's
view of the vacant possession value of the assets (given their
location, age, and tenure).
S&P will publish a transaction update in due course, providing
more details on S&P's rating approach for this transaction.
Ratings List
Vanwall Finance PLC
GBP355.8 Million Commercial Mortgage-Backed Floating-Rate Notes
Ratings Lowered and Removed from Creditwatch Negative
Rating
------
Class To From
----- -- ----
D BBB A/Watch Neg
E BB BBB/Watch Neg
F BB- BBB-/Watch Neg
* Moody's Downgrades Ratings on 20 Notes by CDO Transactions
------------------------------------------------------------
Moody's Investors Service announced that it has downgraded its
ratings of 20 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
titled "Moody's Updates its Key Assumptions for Rating Corporate
Synthetic CDOs," published on January 15, 2009.
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:
BNP Paribas - Cassiopeia 2004-1
-- Mezzanine Credit Default Swap - Cassiopeia 2004-1, Downgraded
to Caa1; previously on 29 September 2008 Downgraded to Baa2
BNP Paribas - Cassiopeia 2004-2
-- Mezzanine Credit Default Swap - Cassiopeia 2004-2, Downgraded
to Ba2; previously on 12 February 2004 Assigned Aa2
BNP Paribas - Faraya 2004-5 Mezzanine Credit Default Swap
-- US$15,000,000 Mezzanine Credit Default swap, Downgraded to
Caa3; previously on 06 September 2006 Downgraded to Baa3
BNP Paribas, London Branch - Lyra 2004-1
-- Mezzanine Credit Default Swap - Lyra 2004-1, Downgraded to
Ba1; previously on 01 July 2008 Downgraded to Aa2
Corsair (Jersey) No. 2 Limited Series 80
-- Series 80 US$250,000,000 Floating Rate Secured Portfolio
Credit-linked Notes due 2021, Downgraded to Baa1; previously
on 28 April 2006 Assigned Aaa
Corsair (Jersey) No. 4 Limited - Series 5
-- US$43,000,000 Cross-Contingent Step-down Portfolio Credit-
Linked Notes due 2024, Downgraded to Ba1; previously on 08
January 2007 Assigned Aaa
Corsair (Jersey) No. 4 Limited - Series 6
-- US$85,000,000 Cross-Contingent Step-Down Portfolio Credit-
Linked Notes due 2024, Downgraded to Ba3; previously on 12
November 2008 Downgraded to Baa1
Corsair (Jersey) No. 4 Limited Series 10
-- US$40,000,000 Partial Credit Loss Protected Step-Down
Portfolio Credit-Linked Notes due 2027, Downgraded to Ba1;
previously on 04 April 2007 Assigned Aaa
Corsair (Jersey) No. 4 Limited - Series 13
-- Series 13 US$25,000,000 Step-Down Portfolio Credit-Linked
Notes due 2020, Downgraded to Caa3; previously on 23 July
2007 Assigned Aaa
Corsair Finance Ireland No 4 - Series 5-8
-- Series 5 EUR 25,000,000 Floating Rate Secured Callable
Portfolio Credit-Linked Notes due 2014, Downgraded to Caa1;
previously on 02 August 2007 Assigned Aaa
-- Series 6 EUR 25,000,000 Floating Rate Secured Callable
Portfolio Credit-Linked Notes due 2014, Downgraded to Ca;
previously on 02 August 2007 Assigned Aa2
-- Series 7 EUR 25,000,000 Floating Rate Secured Callable
Portfolio Credit-Linked Notes due 2014, Downgraded to Ca;
previously on 02 August 2007 Assigned Aa3
-- Series 8 EUR 25,000,000 Floating Rate Secured Callable
Portfolio Credit-Linked Notes due 2014, Downgraded to Ca;
previously on 02 August 2007 Assigned Aa3
Fixed Income Diamond Collection Ltd: Brilliant Series 2
-- Brilliant Series 2, Downgraded to Baa2; previously on 31
October 2007 Downgraded to A3
Fixed Income Diamond Collection Ltd: Brilliant Series 3
-- Brilliant Series 3, Downgraded to Baa1; previously on 19 May
2003 Assigned A2
Fixed Income Diamond Collection Ltd: Emerald Series 2
-- Emerald Series 2, Downgraded to B3; previously on 07 October
2008 Downgraded to B1
Fixed Income Diamond Collection Ltd: Emerald Series 3
-- Emerald Series 3, Downgraded to B2; previously on 07 October
2008 Downgraded to Ba3
Fixed Income Diamond Collection Ltd: Oval Series 2
-- Oval Series 2, Downgraded to B1; previously on 09 November
2006 Downgraded to Ba2
Fixed Income Diamond Collection Ltd: Oval Series 3
-- Oval Series 3, Downgraded to Ba3; previously on 05 July 2006
Downgraded to Ba1
Omega Capital Europe p.l.c. Crossway Series 4
-- EUR 50,000,000 Class S1E Crossway Series 4 Secured Floating
Rate Notes, Downgraded to Baa3; previously on 10 March 2005
Assigned Aaa
* Large Companies with Insolvent Balance Sheet
----------------------------------------------
Shareholders Total Working
Equity Assets Capital
Ticker (US$MM) (US$MM) (US$MM)
------ ----------- ------- --------
AUSTRIA
-------
Libro AG (110) 174 (168)
Sky Europe (4) 213 (54)
BELGIUM
-------
Sabena S.A. (85) 2,215 (279)
CYPRUS
------
Allbury Travel (5) 275 (100)
Libra Holidays (5) 275 (100)
CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
Danek Praha Holding (89) 192 (59)
Setuza A.S. (61) 139 (62)
DENMARK
-------
Elite Shipping (28) 101 3
Roskilde Bank (533) 7,877 N.A.
FRANCE
------
BSN Glasspack (101) 1,151 159
Grande Paroisse S.A. (927) 629 347
Immob Hoteliere (67) 301 (17)
Lab Dosilos (28) 110 (44)
Matussiere et Forest S.A. MTF (78) 294 (38)
Pagesjaunes GRP PAJ (3,023) 1,377 (453)
Rhodia SA (342) 6,507 712
SDR Centrest (132) (252) N.A.
Selcodis S.A. SPVX (21) 141 (36)
Trouvay Cauvin (0) 134 9
GERMANY
-------
Alno AG ANO (21) 340 (88)
Brokat AG (27) 144 109
CBB Holding AG COB (43) 905 N.A.
Cinemaxx AG MXC (38) 178 (47)
Dortmunder
Actien-Brauerei DABG (13) 118 (27)
EECH Group AG 0 109 57
EM.TV AG EV4G.BE (22) 849 19
Kaufring AG KAUG (19) 151 (48)
Kunert AG (28) 102 29
Maternus Kliniken AG MAK.F (17) 182 (99)
Nordsee AG (8) 195 (14)
P & T Technology 0 109 57
Primacom AG PRC (14) 730 (68)
Rinol AG 0 168 (6)
Sander AG (6) 128 32
Sinnleffers AG (4) 454 (182)
Spar Handels- AG SPAG (442) 1,433 (294)
TA Triumph-Adler TWN (66) 484 (77)
Vivanco Gruppe (10) 131 28
GREECE
------
Empedos SA (34) 175 (57)
Noussa Spin (11) 450 (107)
Petzetakis-PFC PETZP (15) 294 (143)
Radio A.Korassidis KORA (101) 181 (165)
Commercial
Themeliodome (56) 232 (128)
United Textiles (11) 450 (107)
HUNGARY
-------
Brodograde Indus (322) 264 (366)
IPK Osijek DD OS (15) 124 (82)
OT Optima Teleko (26) 119 7
ICELAND
-------
Decode Genetics (187) 111 48
IRELAND
-------
Elan Corp PLC ELN (388) 1,599 705
Waterford Wed Ut WTFU (506) 821 364
ITALY
-----
Binda S.p.A. BND (11) 129 (23)
Cirio Finanziaria S.p.A. (422) 1,583 N.A.
Gruppo Coin S.p.A. GC (152) 791 (61)
Compagnia Italia ICT (138) 527 (318)
Credito Fondiario
e Industriale S.p.A. (200) 4,213 N.A.
Fullsix (4) 114 (18)
I Viaggi del
Ventaglio S.p.A. VVE (73) 540 (127)
Lazzio S.p.A. (15) 261 (40)
Olcese S.p.A. OLCI.MI (13) 180 (80)
Parmalat Finanziaria
S.p.A. (18,4219) 4,121 (16,919)
Snia S.p.A. SN (25) 488 31
Technodiffusione
Italia S.p.A. TDIFF.PK (90) 152 (30)
LUXEMBOURG
----------
Carrier1 International S.A. (95) 472 393
NETHERLANDS
-----------
Baan Company N.V. BAAN (8) 610 46
James Hardie Ind. (238) 2,357 184
United Pan-Euro Air UPC (5,505) 5,113 (9,170)
NORWAY
------
Interoil Exploration IOX (25) 210 (11)
Petroleum-Geo Services PGO (18) 400 (758)
POLAND
------
Toora (289) 147 (86)
PORTUGAL
--------
Lisgrafica Impressao
e Artes Graficas SA LIG (4) 117 (27)
ROMANIA
-------
Oltchim RM Valce OLT (7) 673 (170)
Rafo Onesti RAF (430) 353 (616)
RUSSIA
------
Akcionernoe Brd (117) 135 (24)
East Siberia Brd VSNK (113) 148 (11)
Gukovugol (58) 144 (148)
OAO Samaraneftegas (332) 892 (611)
Vanadiy-Tula-Brd (12) 105 (3)
Vimpel Ship SOVP (116) 135 (24)
Zil Auto ZILLP (240) 478 (447)
SWITZERLAND
-----------
Fortune Management (119) 265 (54)
TURKEY
------
Egs Ege Giyim VE (7) 147 (25)
Iktisat Financial (46) 108 N.A.
Mudurnu Tavukcul (65) 160 (115)
Nergis Holding (77) 299 38
Sifas (17) 117 21
Yasarbank (4,025) 2,644 N.A.
UKRAINE
-------
Dniprooblenergo DNON (51) 433 (200)
Donetskoblenergo DOON (367) 631 (469)
UNITED KINGDOM
--------------
Advance Display (3,016) 2,590 (411)
Airtours Plc (379) 1,818 (932)
Alldays Plc (120) 252 (290)
Amer Bus Sys (497) 121 (497)
Amey Plc AMY (49) 932 (76)
Anker Plc (22) 115 16
Atkins (WS) Plc ATK (46) 1,345 58
Black & Edgingto (140) 203 23
BNB Recruitment (10) 104 38
Booker Plc BKRUY (60) 1,298 (13)
Bradstock Group BDK (2) 269 7
British Energy Ltd (5,823) 4,921 534
British Energy Plc BGY (5,823) 4,921 534
British Sky Broadcast (334) 8,126 (388)
Carlisle Group (12) 204 30
Compass Group CPG (668) 2,972 (440)
Danka Bus (497) 121 (497)
Dawson Holdings (18) 226 (63)
Dignity Plc DTY (9) 648 71
E-II Holdings (199) 651 149
Easynet Group ESY.L (45) 323 68
Electrical and Music
Industries Group EMI (2,266) 2,950 (582)
European Home (14) 111 (70)
Farepak Plc (14) 111 (70)
Gartland Whalley (11) 145 (13)
Hilton Food Group (21) 256 (12)
Kleeneze Plc (14) 111 (70)
Ladbrokes Plc LAD (814) 2,403 (706)
Lambert Fenchurch Group (1) 1,827 5
Leeds United (73) 144 (48)
M 2003 Plc (2,204) 7,204 (1,078)
Mytravel Group MT.L (380) 1,818 (931)
New Star Asset (398) 293 21
Next Plc (119) 3,161 (125)
Orange Plc ORNGF (594) 2,902 12
Orbis Plc (4) 128 (5)
Patientline Plc (55) 125 (10)
Preedy Alfred (119) 3,161 (125)
Rank Group Plc (132) 1,066 (175)
Regus Plc (46) 367 (97)
Rentokil Initial (8) 4,178 (886)
Saatchi & Saatchi SSI (119) 705 (66)
Samsonite Corp. (199) 651 (149)
SFI Group SUF (108) 178 (265)
Skyepharma Plc SKP (140) 203 23
Smiths News Plc (124) 201 (92)
Styles & Wood (57) 107 (9)
Telewest
Communications Plc TLWT (3,702) 7,581 (10,042)
Thorn Emi Plc (2,266) 2,950 (582)
Topps Tiles Plc (111) 195 18
Trio Finance (14) 592 N.A.
UTC Group (12) 204 30
Virgin Mobile (392) 166 (176)
Watson & Philip (120) 252 (290)
*********
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.
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