/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090319.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 Thursday, March 19, 2009, Vol. 10, No. 55 Headlines B E L G I U M FORTIS BANK SA/NV: EUR22.5 Bil. Loss Cues S&P's Junk Rating F R A N C E CMA CGM: S&P Puts 'BB+' Corporate Credit Rating on Negative Watch RANGER FRANCE: To be Rescued by Sora Composites G E R M A N Y ECMI GMBH: Claims Registration Period Ends April 23 ESCADA AG: Herz Brothers Mull Buying More Shares in Company GENERAL MOTORS: Complete Separation of Opel From Firm Impossible MABO GROUP: Claims Registration Period Ends May 6 NAMOR EPRINT: Claims Registration Period Ends April 9 SIBEMA RECREATIE: Claims Registration Period Ends April 9 SUMMIT GERMANY: In Breach of LTV Covenant on EUR96MM Debt Facility SYSTEMPARTNER COMPUTERVERTRIEBS: Claims Registration Ends April 17 WF KUNSTSTOFFVERARBEITUNG: Claims Registration Ends April 22 I C E L A N D STRAUMUR-BURDARAS: FME Orders Transfer of Deposits to Islandsbanki I R E L A N D BERNARD L. MADOFF: Trustee Hands Off on Irish Court Proceedings SILENUS LTD: S&P Cuts Ratings on Class E and F Notes to Low-B I T A L Y ALITALIA SPA: "Small" Bondholders May Get US$129 Mln Refund BANCA ITALEASE: Moody's Cuts Financial Strength Rating to 'E+' FIAT SPA: Chrysler Says Partnership Could be Worth US$10 Bln PROGRAMMA DINAMICO: Fitch Cuts Rating on CSFB PV2 Notes to 'B+' K Y R G Y Z S T A N KEMIN ENERGO: Creditors Must File Claims by March 27 N E T H E R L A N D S BASELL FINANCE: S&P Retains 'C' Rating on US$300 Million Bond * Moody's Updates Rating Methodology for Dutch RMBS Transactions R U S S I A ALROSA CO: Mulls Foreign Asset Acquisition GAZ GROUP: MMK Raises Debt Claims by 50% to RUR1.5 Billion SEVERSTAL OAO: Net Profit Up 9.9% to US$2.03 Bln in 2008 TROIKA DIALOG: Mulls Raising US$172 Mln Through Bonds Sale UC RUSAL: Deripaska May Have to Sell Assets to Repay Alfa Loan UC RUSAL: Pledges Stakes in Three Aluminum Units to VEB * S&P Says Rating Pressures on Russia to Impact Oil and Gas Sector S P A I N FONCAIXA EMPRESAS: Moody's Puts Provisional 'Ca' Rating on D Notes FORD MOTOR: Cuts Production in Europe Due to Waning Demand U K R A I N E ALPHAMET LLC: Court Starts Bankruptcy Supervision Procedure BIG ENERGIA: Placed in Receivership by Ukraine's Central Bank EURO DWELLING: Creditors Must File Claims by March 27 INTERBROCKSERVICE LLC: Court Starts Bankruptcy Procedure PROCAPITAL LLC: Creditors Must File Claims by March 26 ROMNY BREWERY OJSC: Creditors Must File Claims by March 27 SVIT-BUSINESS-SYSTEM LLC: Creditors Must File Claims by March 27 UKRCHEM LTD LLC: Court Starts Bankruptcy Supervision Procedure U N I T E D K I N G D O M AEOLUS CDO: Fitch Cuts Rating on GBP7.5 Mln Class D Notes to 'B' ALBURN REAL: Fitch Junks Rating on GBP5.4 Mln Class E Notes BERTIE SHOES: Appoints Joint Administrators from Deloitte BRADFORD & BINGLEY: S&P Cuts ST Counterparty Credit Rating to 'SD' BRIXTON PLC: Mulls GBP250 Mln Rights Issues; Debt Breach Likely BRIXTON PLC: Fitch Cuts Senior Unsecured Rating to 'BB+' CADENZA: Lack of Funding Spurs Liquidation COAST STORES: Appoints Joint Administrators from Deloitte DECO 11: Fitch Junks Rating on GBP28.7 Mln Class D Notes FORBURY HOTEL: Goes Into Administration; Baker Tilly Appointed JJB SPORTS: Lenders Extend Standstill Arrangements Until March 24 LANCE HOMES: Appoints Joint Administrators from BDO Stoy Hayward MAYLUX ENGINEERING: Taps Joint Administrators from Grant Thornton MOHAVE LTD: Calls in Joint Administrators from Deloitte NOEL ACQUISITIONS: Appoints Joint Administrators from Deloitte ROYAL BANK: Ex-CEO Agrees to Repay GBP3 Mln in Retirement Funds ROYAL BANK: Pension Funds Suing Bank on False Information ROYAL BANK: To Keep Most of Businesses in China SELIGO: Goes Into Administration; Shipleys Appointed SIG PLC: Mulls GBP300 Million Rights Issue YELL GROUP: S&P Cuts Long-Term Corporate Credit Rating to 'B+' * Adam Penny Joins Brown Rudnick as Partner in London Office * Upcoming Meetings, Conferences and Seminars ********* ============= B E L G I U M ============= FORTIS BANK SA/NV: EUR22.5 Bil. Loss Cues S&P's Junk Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered to 'CC' from 'BB' its issue rating assigned to Fortis Bank SA/NV's (Fortis Bank; A/Watch Pos/A-1) convertible and subordinated equity-linked securities. The rating remains on CreditWatch with developing implications, where it was originally placed on Oct. 6, 2008. This decision follows the announcement that, following a statutory loss of EUR22.5 billion at year-end 2008, Fortis SA/NV (Fortis; Fortis Bank's former majority shareholder) will cut its dividend for financial year 2008. Although the bank stated that it will pay the coupon payment on the CASHES due on March 19, 2009, to investors in cash, the announcement of a nonpayment of a dividend for 2008 by Fortis implies, in S&P's view, that the bank may not be able to settle the CASHES coupon payment of June 19, 2009, in a timely manner. Although S&P understand from the contractual terms of the CASHES instrument, that this payment will be deferred, S&P would view the nonpayment of the coupon on June 19, 2009, as a default according to S&P's methodology. This would require us to lower the rating on the CASHES instrument to 'C' a few days before a possible default. According to the issue documentation, the nonpayment of a dividend by Fortis means that the alternative coupon satisfaction method applies to the CASHES instruments, which in practice means that Fortis Bank must issue new shares to finance the coupons on these instruments. This issuance of new shares is not expected to be possible in time for the June 19, 2009 coupon payment, however, as it requires, among other things, that Fortis' shareholders approve the proposals to reduce the holding company's capital. Although triggered, the ACSM may thus fail to allow the bank to settle coupon payments on CASHES due in June 2009, in S&P's opinion. The developing implications reflect the possibility that S&P could lower the rating on the CASHES instrument to 'C' prior to June 19, 2009, if it is clear that Fortis Bank will not honor the payment of its coupon. S&P views this scenario as likely. Alternatively, S&P could raise the rating if Fortis Bank provides new information to the financial markets that would tangibly show its intention to pay the coupons on this instrument in a timely manner. Standard & Poor's will continue to monitor the evolving situation, in particular regarding BNP Paribas' acquisition of Fortis Bank. Standard & Poor's ratings on Fortis Bank are on CreditWatch with positive implications, reflecting S&P's view that it is increasingly likely that BNP Paribas will acquire Fortis Bank, following the recent announcement that the Belgian state, BNP Paribas, and Fortis have signed a new agreement amending the protocol signed on Oct. 10, 2008. Although this new agreement is subject to approval at the Fortis shareholders' meeting, S&P nevertheless believe that this vote now has a reasonable chance of being positive, allowing for BNP Paribas' acquisition of Fortis Bank to go through. =========== F R A N C E =========== CMA CGM: S&P Puts 'BB+' Corporate Credit Rating on Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it placed its long- term 'BB+' corporate credit rating and 'BB-' senior unsecured debt ratings on France-based container shipping operator CMA CGM S.A. on CreditWatch with negative implications. "This action is a result of the continued deterioration of industry conditions and S&P's concern that this may further weaken the group's financial credit measures," said Standard & Poor's credit analyst Stuart Clements. "The CreditWatch placement has been prompted by the continued global economic downturn, which continues to depress container freight rates and operators' earnings. A substantial reduction in demand is now evident, at a time when ship supply continues to increase, and S&P believes that supply now substantially exceeds demand," said Mr. Clements. Due to the significant global order book for new container vessels, S&P believes that supply will continue to increase over the next few years and that the downturn in the container markets could be deeper and longer than S&P previously anticipated. S&P understand that global freight volumes fell substantially in January and that this has further reduced freight rates. As a result, S&P is concerned that continued depressed freight rates and volumes may further weaken CMA CGM's profitability and leverage measures. CMA CGM is one of the world's largest and most efficient container shipping operators and has a large and modern fleet. It benefits from a strong competitive position, which is supported by the group's extensive global route network and its solid market positions. Revenues, however, are biased toward the Asia-to- Europe trade route, where S&P understand rates are significantly depressed as a result of sharply reduced volumes shipped and overtonnage. However, costs, mainly for bunkers (fuel) and charter rates, are also coming down rapidly, which should mitigate some of the negative effects on earnings. In the 12 months ended Sept. 30, 2008, CMA CGM's operating margin (before depreciation) weakened to about 18% from about 22% for the corresponding period in 2007. This reflected higher costs and falling rates, which have hampered margins. Since then, freight rates have fallen further and S&P anticipate a further decline in profit margins. CMA CGM will need strong cash flow generation to support its financial leverage (on an adjusted basis), which is high for the ratings, in a deteriorating industry environment. CMA CGM's debt to EBITDA was 6.3x (3.9x excluding operating lease adjustments) for the 12 months ended Sept. 30, 2008. Investment commitments remain significant, reflecting the group's aggressive growth ambitions. However, the company pays low dividends, enabling it to reinvest free cash flows in the business, which S&P considers a positive rating factor. The CreditWatch review will enable Standard & Poor's to gain a better understanding of the impact that these adverse industry conditions and CMA CGM's mitigating actions are likely to have on the group's business and financial risk profiles. S&P aims to resolve the CreditWatch within a maximum of three months. Given the weak industry conditions, S&P considers a positive rating development unlikely in the near term. S&P could lower the rating if S&P judges that adverse market conditions will pressure profit margins and cash flows such that the financial profile weakens below S&P's benchmark ratios for the rating. At the current rating level, S&P expects operating lease-adjusted funds from operations to adjusted debt to average 25% (24% for the 12 months to Sept. 30, 2008) and adjusted debt to capital to average 65% (71% at end-September 2008). RANGER FRANCE: To be Rescued by Sora Composites ----------------------------------------------- Plasteurope reports that Sora Composites is to acquire injection moulding company Ranger France out of administration. According to the report, Sora plans to retain of 227 of Ranger France's original workforce of 430. The report recalls Ranger France went into administration on Oct. 24, 2008. Ranger France is based in Theillay, France. ============= G E R M A N Y ============= ECMI GMBH: Claims Registration Period Ends April 23 --------------------------------------------------- Creditors of ECMI GmbH have until April 23, 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 June 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Matthias Lechleitner Am Waldschloesschen 4 01099 Dresden Germany The court opened bankruptcy proceedings against the company on March 13, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: ECMI GmbH Einsteinstrasse 1 01069 Dresden Germany Reinhard Pfeiler, Manager Geboren 1940 Einsteinstrasse 1 01069 Dresden Germany ESCADA AG: Herz Brothers Mull Buying More Shares in Company ----------------------------------------------------------- Reuters reports German billionaire brothers Wolfgang and Michael Herz plan to participate in a capital increase at Escada AG after the fashion group reported wider fourth quarter and full year losses. The Herz family holds a combined 24.9 percent stake in the company but still aims to keep its shareholding below 30 percent, Reuters says citing a person familiar with the matter. Reuters relates the source said the Herz brothers want other shareholders to take up new Escada shares in proportion to their percentage stakes. Wider Losses Escada's net loss in the three months through January swelled to EUR6.3 million (US$8.2 million) from EUR4 million a year earlier, Bloomberg News reports citing a company statement. Sales for the current quarter fell 7.5 percent to EUR131.5 million. Net loss in the fiscal year that ended Oct. 31 widened to EUR70.3 million from EUR27 million and sales fell 15 percent to EUR582.5 million, the report says. "These sales and earnings are unsatisfactory," the report quoted Chief Executive Officer Bruno Saelzer as saying in a conference call. "They highlight the urgent need to act and justify a refocus." Escada has been talking to its banks about a short- and mid- term strategy, Chief Financial Officer Markus Schuerholz said as cited by the report. The report relates management will propose reducing Escada's capital to EUR58 million from EUR107 million to remove a shortage of subscribed capital resulting from a balance sheet loss of EUR48.9 million last fiscal year. The measure will be put to its annual general meeting on April 28, the report notes. About Escada AG Headquartered in Aschheim, Germany, ESCADA AG (FRA:ESC) -- http://www.escada.com/-- is a fashion group engaged in women's designer fashion. Under its core brand ESCADA, the Company sells women's designer fashions for daytime, evening, business, leisure, sports, wellness and special occasions, as well as couture. The fashion range is supplemented with accessories like handbags, shoes and small leather goods. Fragrances, eyewear, kids wear and jewelry from licensed partners are also sold under the ESCADA brand. Through its wholly owned subsidiary, PRIMERA AG, the Company additionally sells the mid-priced brands apriori, BiBA, cavita and Laurel. ESCADA AG has 194 own shops and 226 franchise shops in approximately 60 countries. Its manufacture capacities are mainly outsourced to partner operations, located in Germany, Italy, Eastern Europe and Asia. * * * As reported in the Troubled Company Reporter-Europe on Dec. 26, 2008, Moody's Investors Service downgraded the Corporate Family Rating, the Probability Default Rating of Escada AG and the senior unsecured rating on the EUR200 million notes due 2012 to Caa2 from B3. The outlook on the ratings remains negative. As reported in the Troubled Company Reporter-Europe on Dec. 22, 2008, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on ESCADA AG to 'CCC+' from 'B-' due to the company's ongoing operating underperformance. The outlook is negative. GENERAL MOTORS: Complete Separation of Opel From Firm Impossible ---------------------------------------------------------------- Christoph Rauwald at The Wall Street Journal reports that a document compiled for the German lower house of Parliament's economic and technology committee said that complete separation of Opel from General Motors Co. is impossible. According to WSJ, the document said, "One can try to create a certain degree of security for German creditors, citizens with legal terms." As reported by the Troubled Company Reporter on March 12, 2009, German Chancellor Angela Merkel said that in order to grant any aid, it is necessary to know plans for GM, how independently Opel will be allowed to operate and the future of Opel's patents. WSJ relates that GM's European division is seeking EUR3.3 billion in aid from Germany and other governments in the region to avert insolvency. According to the report, the ministry asked a law firm to examine how to make sure that any state help for Opel doesn't end up at GM but remains in Germany. Jeff Green at Bloomberg relates that GM favors a plan to sell at least half of Opel to an investor with European government backing, close plants and cut US$1.2 billion from costs. Opel said in a restructuring plan submitted to the government earlier this month that GM's financial support would come in the form of capital contributions from other European GM units and cash for severance packages, WSJ reports. Bondholders Willing to Help GM Avert Bankruptcy Dow Jones Newswires reports that a group representing GM bond holders said that it has been willing to cut a deal with the Company that would help avoid a bankruptcy. Steven Rattner, a lead advisor of the auto task force, has described the committee a being "quite difficult," and said that the bondholders were obstructing GM's recovery, Dow Jones relates. Dow Jones states that bondholders claimed that they're being asked to sacrifice more than the United Auto Workers, which is in talks with GM over reducing the Company's obligations to retirees. The group said in a statement that it presented a proposal several weeks ago for a debt swap which fell in line with terms set by the U.S. government when it loaned GM about US$13.4 billion to stay afloat. The committee said in a statement that the the proposal presented by the bondholders "provides the best chance, given the parameters set forth in the plan, of completing an out-of-court restructuring by securing a high level of acceptance among a diverse group of GM bondholders -- from mutual funds to pension funds to retail bondholders. We stand ready to do our part to bring about a workable solution." Citing GM Chief Financial Officer Ray Young, Bloomberg reports that the Company still needs more than US$28.5 billion in cuts from a union retiree health fund and from unsecured bondholders by a March 31 government deadline. Mr. Young, Bloomberg relates, said that the Canadian Auto Workers agreed to freeze pay and reduce pension increases so that labor costs are lower than those of foreign automakers in the U.S. like Toyota Motor Corp. The report, citing Toyota spokesperson Mike Goss, states that Toyota's hourly U.S. labor rate is about US$48. The report quoted Mr. Young as saying, "It's very possible they have a different set of demographics, a different set of costs, so it's very possible our agreement doesn't work for them." According to Bloomberg, Mr. Young said that GM also had a good dialogue with European Union economy ministers as the Company seeks for EUR3.3 billion in state aid for its Opel division. Bloomberg quoted Senator Bob Corker as saying, "It's very obvious to me they're following the playbook that we laid out." Senator Corker unsuccessfully argued in December for such changes as part of a failed Congressional rescue, Bloomberg states. According to the report, Senator Corker said that had the UAW agreed in December to make the kinds of changes they are now making, an aid package "would have overwhelmingly received bipartisan support" rather than fail in the Senate. GM spokesperson Dan Flores said that the Company informed a few hundred secondary suppliers to its 3,000 primary suppliers that the Company is willing to purchase parts directly if there are concerns about the health of the primary provider, Bloomberg reports. 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 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. MABO GROUP: Claims Registration Period Ends May 6 ------------------------------------------------- Creditors of Mabo Group GmbH have until May 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 7, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 119 B Gerichtsstr. 2-6 48149 Muenster 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: Erich Hoelzemann Goethestr. 2 59065 Hamm Germany Tel: 02381/924200 Fax: +4923819242020 The court opened bankruptcy proceedings against the company on March 11, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Mabo Group GmbH Attn: Udo Th. Thuener, Manager Tom-Rink-Str. 7 59302 Oelde Germany NAMOR EPRINT: Claims Registration Period Ends April 9 ----------------------------------------------------- Creditors of Namor ePrint Factory GmbH have until April 9, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on May 11, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Klaus Pannen Neuer Wall 25/Schleusenbruecke 1 20354 Hamburg Germany The court opened bankruptcy proceedings against the company on March 12, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Namor ePrint Factory GmbH Attn: Roman Claudio Bach, Manager Ludwig-Erhard-Strasse 37 20459 Hamburg Germany SIBEMA RECREATIE: Claims Registration Period Ends April 9 --------------------------------------------------------- Creditors of Sibema Recreatie GmbH have until April 9, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 12:00 p.m. on April 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Kleve Meeting Hall D 117 Schlossberg 1 47533 Kleve 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. Juergen Toemp Wilhelmshofallee 75 47800 Krefeld Germany Tel: 0215158130 Fax: 021515813134 The court opened bankruptcy proceedings against the company on March 12, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Sibema Recreatie GmbH Attn: Antoon van der Horst, Manager Industriestrasse 40 47652 Weeze Germany SUMMIT GERMANY: In Breach of LTV Covenant on EUR96MM Debt Facility ------------------------------------------------------------------ Purwa Naveen Raman at Reuters reports that Summit Germany Ltd on Tuesday said it was in breach of its loan-to-value covenant of 85 percent on a EUR96 million debt facility. Summit said in a March 17 statement the facility relates to a portfolio representing approximately 12% of the group's current gross property assets. Summit, however, said the breach is not expected to impact adversely any of the group's other facility agreements. The group said it has approached the lender in order to discuss a resolution. The board is confident a suitable outcome can be achieved given the group's strong cash flow and management performance. Summit expects to announce its results for the financial year ended December 31, 2008 on March 31, 2009. Reuters recalled in January, Summit had said most of its debt facilities were currently close to the upper limit of their loan- to-value covenants, as property capital valuations were coming under pressure amid difficult market conditions. Summit Germany Ltd -- http://www.summitgermany.co.uk/-- is an investment company focused on building a substantial portfolio of commercial properties in Germany. The company is registered in Guernsey. SYSTEMPARTNER COMPUTERVERTRIEBS: Claims Registration Ends April 17 ------------------------------------------------------------------ Creditors of Systempartner Computervertriebs GmbH have until April 17, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 29, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bremerhaven Hall 209 Nordstr. 10 27580 Bremerhaven 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: Walter Spoetter Martinistr. 3 28195 Bremen Germany Tel: 0421-360800 Fax: 0421-321050. The court opened bankruptcy proceedings against the company on March 12, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Systempartner Computervertriebs GmbH Buergermeister-Smidt-Strasse 20b 27568 Bremerhaven Germany Attn: Sven Kalinowski, Manager Auf den Deelen 8A 27607 Langen Germany WF KUNSTSTOFFVERARBEITUNG: Claims Registration Ends April 22 ------------------------------------------------------------ Creditors of WF Kunststoffverarbeitung GmbH have until April 22, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9.45 a.m. on May 6, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Nuernberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg 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: Peter Engelmann Archivstr. 3 90408 Nuremberg Germany Tel: 0911/5 97 81 � 22 Fax: 0911/5 97 81 � 44 The court opened bankruptcy proceedings against the company on March 13, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: WF Kunststoffverarbeitung GmbH Attn: Wolfgang Frenzel, Manager Breitenloher Weg 3 91166 Georgensgmuend Germany ============= I C E L A N D ============= STRAUMUR-BURDARAS: FME Orders Transfer of Deposits to Islandsbanki ------------------------------------------------------------------ The Financial Supervisory Authority (FME) has made a decision on the disposal of obligations of Straumur-Burdaras Investment Bank hf. in Iceland due to deposits in the headquarters of the bank in Iceland. Deposits will be allocated to Islandsbanki hf. according to the balance and interest earned on the date of takeover with certain limitations specified in the decision. All terms for the deposits in question regarding duration, interest terms, currency, etc. remain unchanged vis-a-vis Islandsbanki hf. Straumur-Burdaras will issue a bond as repayment for the deposit obligations that are taken over and all assets of the bank will be put up as collateral for the bond. The Resolution Committee of Straumur-Burdaras is assigned to execute the decision of the FME. The transfer of deposits and the issuance of promissory and collateral documents shall take place no later than Friday, March 20, 2009 at 9:00 a.m. As reported in the Troubled Company Reporter-Europe on March 11, 2009, Straumur-Burdaras collapsed after running out of liquidity, forcing the Icelandic government to take over the lender. The Icelandic Financial Supervisory Authority suspended the bank's board and named a committee that will take over management, Bloomberg News recalled. According to The Associated Press, the bank's board -- including chairman, Bjorgolfur Thor Bjorgolfsson �- had been replaced by a team of public accountants and solicitors from PriceWaterhouseCoopers. The Straumur board presented the Icelandic government with a range of options to save the bank from collapse, but officials took the "most drastic" route of state control, Telegraph.co.uk disclosed citing sources. IFSA is in the process of closing the business, according to BBC News. The bank's chief executive, William Fall, who joined in 2007, resigned from his position with immediate effect. "In spite of its strong capital position and the support of funding banks, Straumur Burdaras Investment Bank believes that its liquidity position is no longer enough to sustain its activities," the bank said in a statement obtained by BBC News. Straumur incurred a EUR780.6 million loss in 2008 on revenue of EUR85.8 million. Loss in the fourth-quarter was EUR576.4 million. Straumur is the last of Iceland's four largest banks to be nationalized. October last year, Iceland seized Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Banki hf after their collapse. Straumur-Burdaras Fjarfestingabanki hf a.k.a Straumur-Burdaras Investment Bank hf -- http://www.straumur.net/-- is an Iceland- based investment bank. It provides such services as debt financing, corporate advisory and capital market services. The Bank's Corporate Finance team identifies, structures and executes public and private market transactions, while the Debt Finance team originates and underwrites the required debt financing. In addition, it acts as a co-investor in selected projects. The Capital Markets team provides securities brokerage services for companies, institutional investors, mutual funds, and high-net- worth individuals. Capital Markets also manages new share offerings and bond issuance for companies and institutions. The Bank operates primarily in Northern and Central Europe, in such countries as Iceland, Denmark, Sweden, Finland, the Czech Republic, Poland, Slovakia, Romania and the United Kingdom. It has eight wholly owned subsidiaries in Iceland, Luxembourg, the Netherlands and Finland. * * * As reported in the Troubled Company Reporter-Europe on March 11, 2009, Fitch Ratings downgraded Straumur-Burdaras Investment Bank's Long-term Issuer Default rating to 'D' from 'B' and Short-term IDR to 'D' from 'B' and removed them from Rating Watch Negative. This follows the announcement that Straumur has been placed under the control of the Icelandic Financial Supervisory Authorities. ============= I R E L A N D ============= BERNARD L. MADOFF: Trustee Hands Off on Irish Court Proceedings --------------------------------------------------------------- Tim Healy at Independent.ie reports that Irving Picard, the US trustee handling the liquidation of Bernard Madoff's businesses, is not participating "at this stage" in High Court proceedings involving EUR1 billion passed on to him for two Irish-listed investment companies, Thema International Fund plc and Alternative Advantage plc. According to the report, HSBC Securities Services (Ireland) Ltd and HSBC Institutional Trust Services (Ireland) Ltd allegedly gave the EUR1 billion to Bernard L Madoff Investment Securities LLC (BLMIS) to invest. The HSBC companies have not returned the monies so far, the report notes. The report relates the court heard Mr. Picard has "wide-ranging" remedies under US law to challenge transactions involving Madoff. However, the AA and Thema contend the proceedings are governed by Irish law and the US trustee cannot properly exercise jurisdiction relating to any payments out of the accounts in question, the report states. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were allegedly at least US$50 billion. Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. Mr. Madoff, if found guilty of all counts, would be imprisoned for 150 years, but legal experts expect the actual sentence to be much lower and would still be an effective life sentence for the 70- year-old defendant, WSJ notes. Mr. Madoff, WSJ relates, would also face millions of dollars in possible criminal fines. The report says that Mr. Madoff has been free on bail since his arrest on December 11, 2008. There was no plea agreement with Mr. Madoff in which leniency in sentencing might be recommended, the report states, citing prosecutors. SILENUS LTD: S&P Cuts Ratings on Class E and F Notes to Low-B ------------------------------------------------------------- Standard & Poor's Rating Services lowered its credit ratings on the class E, F, and G notes issued by SILENUS (European Loan Conduit No. 25) Ltd. The ratings on the other classes remain unaffected. These rating actions reflect S&P's concerns over the credit worthiness, increasing term risk, and maturity profile of some of the loans in the pool. SILENUS (ELOC No. 25) is a true sale commercial mortgage-backed securities transaction, which closed in March 2007. The transaction is backed by 16 loans secured on 184 properties in France, Germany, and Italy. The outstanding principal balance of the transaction is EUR1,144.177 million. A more detailed review of the loans will be given in S&P's transaction update, which will be published in due course. Ratings List SILENUS (European Loan Conduit No. 25) Ltd. EUR1,245.557 Million Commercial Mortgage-Backed Variable- and Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- E BB BBB F BB- BBB- G B BB ========= I T A L Y ========= ALITALIA SPA: "Small" Bondholders May Get US$129 Mln Refund ----------------------------------------------------------- Bloomberg News reported that according to daily Corriere della Sera, Marco Milanese, a representative of Prime Minister Silvio Berlusconi's party, said the Italian government is considering returning EUR100 million (US$129 million) to Alitalia SpA's "small" bondholders. The reimbursement measure wouldn't cover bonds held by institutional investors or the Treasury, Bloomberg News relates citing the Italian newspaper. EU Endorses Privatization, AirFrance Deal Closes Citing Reuters, the Troubled Company Reporter-Europe on Mar. 12, 2009, reported Italy's transport commissioner, Antonio Tajani, said the European Commission has endorsed privatization of flag carrier Alitalia. Alitalia, Reuters said, was formally relaunched in January as a smaller, regional carrier with fewer staff and a revamped network, under the ownership of Compagnia Aerea Italiana s.r.l. ("CAI") investors. Alitalia agreed in January to sell a 25 percent stake to Air France-KLM for EUR323 million (US$410 million), Reuters said. According to Reuters, throughout the process the European Commission watched closely to ensure the ailing Italian carrier received no state aid and was eventually sold at market prices. A monitoring trustee was selected to check, Reuters said. Air France-KLM has completed the stake acquisition in Alitalia at market prices as required by the European Commission, tradingmarkets.com reported citing ADP News. "The trustee has confirmed that it was truly the market price, and the Commission shares that view," Reuters quoted Mr. Tajani as saying. About Alitalia Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. As reported in the Troubled Company Reporter-Europe on Nov. 7, 2008, Alitalia S.p.A. filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York. Italy's national airline experienced financial difficulties for a number of years caused, in large measure, by a combination of competition from low-cost air carriers, poor management and onerous union obligations, according to papers filed with the court. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million in 2006, and EUR494.64 million in 2007. In the petition filed October 29, 2008, Prof. Augusto Fantozzi, the appointed administrator, said the airline's financial difficulties have been and exacerbated by spiraling fuel prices. On Aug. 29, 2008, Alitalia declared insolvency and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi appointed Mr. Fantozzi as extraordinary commissioner. Under the Bankruptcy Bill, the Administrator has supplanted the directors and other management of Alitalia. BANCA ITALEASE: Moody's Cuts Financial Strength Rating to 'E+' -------------------------------------------------------------- Moody's Investors Service has downgraded the bank financial strength rating of Banca Italease to E+ stable outlook from D- and placed its Ba1 long-term debt and deposit ratings and Not Prime short-term rating on review for possible upgrade. The rating agency has also placed the A2 debt and deposit ratings, Prime-1 short-term ratings and C- BFSR of Banco Popolare on review for possible downgrade. Moody's also placed the Baa1 long-term debt and deposit ratings, Prime-2 short-term rating and D+ BFSR of Banco Popolare's subsidiary, Efibanca, on review for possible downgrade. Moody's said that its actions reflect the announcement that: (i) Banca Italease will report a large increase in problem loans (around EUR4.5 billion) and provisions (EUR850 million) at the end of 2008; and (ii) the forthcoming restructuring of Banca Italease. Banca Italease's restructuring is expected to comprise: (a) a tender offer by Banco Popolare, anticipated to be completed by June 2009, by which time Banca Italease will be fully owned by Banco Popolare; (b) the spinning off of Banca Italease's EUR5 billion of indentified problem loans to a new company 80% owned by Banca Italease; and (c) the transfer of around EUR6 billion of leases to a new company owned 33% by Banca Italease and the remainder by Banca Popolare dell'Emilia Romagna, Banca Popolare di Sondrio and Banca Popolare di Milano. The spin offs are expected to be completed by the end of 2009. Moody's said that the downgrade of Banca Italease's BFSR to E+ reflects the bank's extremely weak financial fundamentals, particularly asset quality and capital adequacy, with capital ratios well below the regulatory minimum. The rating agency added that the review for possible upgrade of Banca Italease's debt and deposit ratings will focus on the expectation of increased parental support from Banco Popolare, including capital and liquidity support as necessary, following its proposed acquisition of Italease. With regard to Banco Popolare, the adverse effect of the acquisition of Italease on its capital adequacy will be mitigated by the issue of EUR1.45 billion of hybrid bonds to the government. The review for possible downgrade will focus both on the impact of the acquisition and restructuring of Italease, and on Moody's stress test of the group's assets, earnings and capital, reflecting the more difficult operating environment faced by the bank, which may demonstrate that Banco Popolare should be positioned either more weakly in the C- rating category, or in the D+ category. Any downgrade of the deposit and debt ratings is expected to be limited to one notch given the expectation of systemic support. The review on Efibanca reflects the review of the parent's ratings and will also focus on an anticipated significant deterioration of Efibanca's profitability and asset quality in the current environment. This rating was downgraded Banca Italease -- BFSR to E+ from D- These ratings were placed on review for possible upgrade: Banca Italease -- Ba1 senior unsecured and bank deposit ratings -- Ba2 subordinate rating -- Not Prime short-term deposit rating Banca Italease Capital Trust -- B1 backed preferred stock rating These ratings were placed on review for possible downgrade: Banco Popolare -- C- BFSR -- A2 long-term debt and deposit ratings -- A3 senior subordinate, junior subordinate and Tier III debt ratings -- Baa1 preferred stock rating -- Prime-1 short-term deposit rating Banca Popolare di Lodi Investor Trust III -- Baa1 backed preferred stock rating Efibanca -- D+ BFSR -- Baa1 senior unsecured and bank deposit ratings -- A3 backed subordinate MTN rating -- Prime-2 short-term deposit rating -- Prime-1 backed short-term rating The last rating action on Banca Italease was on August 14, 2007, when the bank's ratings were downgraded to Ba1/Not Prime/D- with stable outlook. The last rating action on Banco Popolare was on November 20, 2008, when the bank's outlook was changed to stable from positive. The last rating action on Efibanca was on January 8, 2008, when the bank's outlook was changed to stable from positive. Banca Italease is headquartered in Milan, Italy. At September 30, 2008 it had total assets of EUR24.0 billion. Banco Popolare is headquartered in Verona, Italy. At September 30, 2008 it had total assets of EUR131.5 billion. Efibanca is headquartered in Rome, Italy. At June 30, 2008 it had total assets of EUR4.8 billion. FIAT SPA: Chrysler Says Partnership Could be Worth US$10 Bln ------------------------------------------------------------ Chrysler LLC's proposed partnership with Fiat SpA could be worth as much as US$10 billion, Washington Post Staff Writer Kendra Marr reports citing Chrysler chief executive Robert L. Nardelli in an e-mail to employees Monday. "This is equal to or greater than the total amount of loans we have requested from the U.S. government," Mr. Nardelli said in the e-mail message obtained by the news agency. Mr. Nardelli, as cited by Washington Post, said with the partnership, Chrysler would save three to five years in development time, plus, the production of Fiat vehicles in North America could boost Chrysler's plant activity, helping preserve and create more than 5,000 manufacturing jobs. The report relates Chrysler is seeking an additional US$5 billion in federal loans by the end of the month "to continue paying the wages of our employees, the invoices of our suppliers, as well as investing in our future product plan." Chrysler has already received US$4 billion in loans, the report notes. To strengthen its business model, Chrysler has agreed to give Fiat a 35 percent stake in return for the Italian automaker's fuel- efficient technology and global distribution network, Washington Post says. Chrysler aims to finish negotiations by the March 31 deadline, the report says. According to the report, the U.S. auto task force has yet to approve a future Chrysler-Fiat partnership. In recent weeks, the report says members of the panel have met with Fiat chief executive Sergio Marchionne and top Chrysler executives to assess the situation. Washington Post reports Mr. Nardelli sought to reassure his employees that Chrysler will continue to operate as a stand-alone company, even if it fails to partner with Fiat. "We were asked by the task force whether Chrysler is viable without a global alliance partner," he wrote. "Our answer is absolutely yes." As reported in the Troubled Company Reporter-Europe on Jan. 23, 2009, The Wall Street Journal said Fiat has EUR5.94 billion (US$7.67 billion) in industrial debt as at the end of 2008, a huge increase from EUR355 million at the end of 2007. The Journal said adding to Fiat's woes is the declining car sales amid the global economic slowdown. According to the Journal, Fiat's net income plunged 71% in the last three months of 2008 to EUR163 million, down from EUR570 million a year earlier, while revenue fell 17.2% to EUR13.09 billion in the quarter. For all of 2008, Fiat's net profit fell 16.2% to EUR1.7 billion, the report noted. Warning that sales will fall further, Fiat halted a share-buyback program, lowered its forecast for 2009 and planned to cut its dividend, the Journal disclosed. Forbes.com reported the carmaker cut its profit outlook for 2009 to EUR1.0 billion (US$1.3 billion) from a previous forecast of between EUR1.5 and EUR2.3 billion (US$1.9 and US$3.0 billion). A Troubled Company Reporter-Europe report on Feb. 25, 2009 said Moody's Investors Service downgraded Fiat S.p.A's long term ratings to Ba1 from Baa3 and its short term ratings to Not Prime from Prime-3. The outlook on the ratings is negative. At the same time Moody's assigned a Ba1 Corporate Family Rating. This concludes Moody's review for downgrade initiated on January 15, 2009. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. PROGRAMMA DINAMICO: Fitch Cuts Rating on CSFB PV2 Notes to 'B+' --------------------------------------------------------------- Fitch Ratings has downgraded Programma Dinamico S.p.A.'s (CSFB PV2) notes, due 14 May 2012, (ISIN IT0003288120) to 'B+' from 'AA', and assigned the notes' rating a Stable Outlook. The rating action reflects the downgrade of two of the three charged assets to 'BB' from 'AAA' on March 16, 2009. The third asset remains rated at 'AAA'. The charged assets are the collateral in which note proceeds were invested following the issue of the notes. Fitch analyzed the collateral pool using the Portfolio Credit Model, and based on the joint probability of default, the prospect of a loss arising in this pool is consistent with a rating of 'B+'. Programma Dinamico is a joint stock company with limited liability incorporated under the laws of Italy. At close in May 2002, it issued EUR230 million credit-linked notes due 2012. It used the proceeds to collateralize a credit default swap with Credit Suisse First Boston International. The swap references an equally weighted reference portfolio of 284 corporate reference entities. =================== K Y R G Y Z S T A N =================== KEMIN ENERGO: Creditors Must File Claims by March 27 ---------------------------------------------------- Creditors of LLC Kemin Energo have until March 27, 2009, to submit proofs of claim to: Pervomaiskaya St. 121 Kemin Keminsky district Chui Kyrgyzstan ===================== N E T H E R L A N D S ===================== BASELL FINANCE: S&P Retains 'C' Rating on US$300 Million Bond ------------------------------------------------------------- Standard & Poor's Ratings Services said that the rating on Basell Finance Co. B.V.'s US$300 million bond, maturing 2027, is still rated 'C'. This follows Basell Finance Co B.V.'s payment on March 16, 2009, of the coupon due on the bond, which is guaranteed by Netherlands-based petrochemicals producer LyondellBasell Industries AF S.C.A. (D/--/--). S&P understands that all interest payments due on the bond are therefore up to date. S&P notes that, as expected, LyondellBasell Industries did not use the grace period for the interest payments on the subordinated debt ratings on its US$615 million and EUR500 million European bonds due 2015, which are rated 'D'. Standard & Poor's is in the process of rating the debtor-in-possession facilities of Lyondell Chemical Co., but this process will take longer than S&P originally assumed. * Moody's Updates Rating Methodology for Dutch RMBS Transactions ---------------------------------------------------------------- Moody's Investors Service explains in a new rating methodology report, published March 17, 2009, recent updates to its modelling approach to rating Dutch residential mortgage-backed securities transactions backed by mortgage loans benefiting from a Nationale Hypotheek Garantie. The amendments outlined in the new report relate to updates in the methodology with regards to the (i) mismatch between the amortization of the NHG guarantee and the actual loan amortization, (ii) set-off risk, (iii) risks related to non compliance with NHG criteria, (iv) representations and warranties and creditworthiness of the originator, and (v) creditworthiness of the guarantee provider. In addition, Moody's also announced that it is revising its methodology for analysing set-off risk due to insurance linked mortgage loan products and deposits in the Netherlands, which is driven by Moody's revised view on this risk. The most important changes comprise of (a) introduction of recovery rate assumptions on set-off losses; (b) a change in the assumption of the likelihood of set-off by the borrower; (c) more focus on the distribution of the insurance company counterparties; and (d) the introduction of correlation between the portfolio of mortgage loans, the insurance company counterparties and originator in the modelling. Moody's expects to publish a report on the new methodology in the second quarter of 2009. Within the universe of transactions rated by Moody's that are backed by pools with mortgage loans benefiting from an NHG Guarantee, Moody's has flagged 15 deals. For these deals Moody's expect the combined methodology update to typically have a one to two notch downward impact on senior notes, although on a transaction by transaction basis the downward impact could be larger (single-A range) depending on single or combined exposures to unrated insurance companies in relation to the available credit enhancement. Because the NHG transactions generally have limited credit protection in the form of reserve fund and/or subordination, these type of transactions are especially vulnerable to the risk of set-off than Dutch RMBS backed by regular mortgages with more structural credit protection. Moody's has put under review for downgrade these tranches: Candide Financing 2007 NHG B.V. -- Class A, Aaa placed under review for possible downgrade, previously on 18 December 2007 assigned Aaa Issuer: DARTS Finance B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 1 November 2004 assigned Aaa Issuer: DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio) -- Class A, Aaa placed under review for possible downgrade; previously on 10 November 2005 assigned Aaa Issuer: E-MAC NL 2005-NHG II B.V. -- Class A, Aaa remains on review for possible downgrade; previously on 10 July 2008 Aaa placed under review for possible downgrade Issuer: E-MAC NL 2006-NHG I B.V. -- Class A, Aaa remains on review for possible downgrade; previously on 10 July 2008 Aaa placed under review for possible downgrade Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG II -- Class A, Aaa remains on review for possible downgrade; previously on 10 July 2008 Aaa placed under review for possible downgrade -- Class B, Ba3 remains on review for possible downgrade; previously on 10 July 2008 downgraded to Ba3 and placed under review for possible downgrade Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG V -- Class Class A, Aaa remains on review for possible downgrade; previously on 10 July 2008 Aaa placed under review for possible downgrade -- Class B, Ba3 remains on review for possible downgrade; previously on 10 July 2008 downgraded to Ba3 and placed under review for possible downgrade Issuer: PEARL Mortgage Backed Securities 1 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 18 September 2006 assigned Aaa -- Class B, Baa2 placed under review for possible downgrade; previously on 18 September 2006 assigned Baa2 Issuer: PEARL Mortgage Backed Securities 2 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 08 June 2007 assigned Aaa -- Class B, Baa2 placed under review for possible downgrade; previously on 08 June 2007 assigned Baa2 Issuer: SOLID 2005-1 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 31 October 2005 assigned Aaa Issuer: Sound I B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 13 October 2005 assigned Aaa -- Class B, Aa3 placed under review for possible downgrade; previously on 13 October 2005 assigned Aa3 -- Class C, A2 placed under review for possible downgrade; previously on 13 October 2005 assigned A2 -- Class D, Baa2 placed under review for possible downgrade; previously on 13 October 2005 assigned Baa2 -- Class E, Ba2 placed under review for possible downgrade; previously on 13 October 2005 assigned Ba2 Issuer: Sound II B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 26 September 2007 assigned Aaa -- Class B, A3 placed under review for possible downgrade; previously on 26 September 2007 assigned A3 Issuer: STRONG 2005 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 30 August 2005 assigned Aaa Issuer: STRONG 2006 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 18 December 2006 assigned Aaa Issuer: STRONG 2007 B.V. -- Class A, Aaa placed under review for possible downgrade; previously on 18 December 2007 assigned Aaa Moody's has affirmed the ratings on these tranches: Issuer: European Mortgage Securities VIII B.V. -- Class A, affirmed at Aaa; previously on 29 October 2008 assigned Aaa -- Class B, affirmed at Aa3; previously on 29 October 2008 assigned Aa3 Stichting Guaranteed Mortgage Securities 2004-I -- Class A-1, affirmed at Aaa; previously on 03 June 2004 assigned Aaa The rating affirmation of the two transactions are due to sufficient subordination in the transaction either as from closing (European Mortgages Securities VIII) or due to deleveraging of the transaction over time (Stichting Guaranteed Mortgage Securities 2004-I). Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. The rating reviews will be concluded over the course of the next three months following a detailed review and remodelling with updated data for each transaction. =========== R U S S I A =========== ALROSA CO: Mulls Foreign Asset Acquisition ------------------------------------------ Alrosa is considering foreign asset acquisition, RIA Novosti reports citing company CEO Sergie Vybornov. The report relates Mr. Vybornov said Alrosa has an opportunity to seize the initiative and become the global leader amid the ongoing crisis, as the company has the world's best diamond resources in Yakutia in northeast Siberia, while its rival De Beers has had to cut output. "There is also an opportunity to purchase very good diamond assets abroad - small companies that are going bankrupt or are on the verge of bankruptcy," the report quoted Mr. Vybornov as saying. About Alrosa ALROSA Co. Ltd. -- http://eng.alrosa.ru/eng/-- is Russia's largest diamond company engaged in the exploration, mining, manufacture and sales of diamonds and one of the world's major rough diamond producers. ALROSA produces about 20% of the world's rough diamond output and accounts for almost 100% of all rough diamonds produced in Russia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 28, 2008, Moody's Investors Service affirmed the Ba2 corporate family ratings of ALROSA Company Ltd and Ba2 senior unsecured US$500 million 2014 notes raised by the group at ALROSA Finance SA and guaranteed by ALROSA Company Ltd. The outlook is stable. While Moody's affirmed the ratings, it also revised the inputs that support the Ba2 corporate family ratings. GAZ GROUP: MMK Raises Debt Claims by 50% to RUR1.5 Billion ---------------------------------------------------------- RIA Novosti reports that Magnitogorsk metals producer (MMK) on Monday said it had increased its debt claims to Russian carmaker GAZ Group by 50% to RUR1.5 billion (US$43.2 million). MMK, as cited by the report, said "The amendment to the claims was due to an increase in interest on the outstanding bills for metal products delivered to the GAZ Group." The report discloses a Nizhny Novgorod arbitration court in Russia's Volga region, where Gaz is headquartered, is set to hear the new claims on April 8. According to the report, Gaz's debts to creditors and suppliers have reached RUR45 billion (US$1.3 billion) since the start of this year. Bankruptcy Threat The report relates Novolipetsk Steel threatened Gaz with bankruptcy last week if it failed to repay RUR1 billion (US$28.7 million) for earlier deliveries. However, Gaz dismissed the threat as an "emotional and unconstructive" proposal and said the company was in talks to have its debts restructured. Debt Restructure Plan Gaz, the report recalls, presented a debt restructure plan to creditors early this month. Under the plan, the company pledged to reduce production costs and introduce personnel cuts and other measures. The report notes according to experts, GAZ will not face bankruptcy due to the government's decision to support the company. SEVERSTAL OAO: Net Profit Up 9.9% to US$2.03 Bln in 2008 -------------------------------------------------------- OAO Severstal's net profit under International Financial Reporting Standards increased 9.9% in 2008 year-on-year to US$2.03 billion, RIA Novosti reported. According to the report, Severstal's revenues soared 44.4% to US$22.39 billion, EBITDA (earnings before interest, taxes, depreciation and amortization) grew 45.5% to US$5.37 billion and operating profit was up 50.6% to US$4.23 billion in 2008. "Severstal achieved good results in 2008 as we benefited from volume growth, price increases and margin improvement," the report quoted Severstal CEO Alexei Mordashov as saying. However, the report noted Severstal incurred a net loss of US$1.21 billion in the fourth quarter of 2008 due to declining demand for steel. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As reported in the Troubled Company Reported-Europe on Dec. 1, 2008, Moody's changed the outlook of Severstal's Ba2 rating to negative. The rating action was prompted by recent collapse in demand for steel products and consequential significant reduction in prices for steel products especially from the CIS steel producers as well as the low visibility for prospects of short term recovery and the current limitations for Russian companies to receive funding from local and international banks. As reported by the Troubled Company Reported-Europe on Nov. 18, 2008, Standard & Poor's Ratings Services revised its outlook on Russia-based steel producer OAO Severstal to stable from positive. This is due to the sharp deterioration in market conditions in the global steel sector in recent months. At the same time, the 'BB' long-term corporate credit and senior unsecured debt ratings, and the 'ruAA' Russia national scale rating, on Severstal were affirmed. The recovery ratings on the notes are unchanged at '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. TROIKA DIALOG: Mulls Raising US$172 Mln Through Bonds Sale ---------------------------------------------------------- Denis Maternovsky at Bloomberg News reports Troika Dialog plans to raise US$172 million from its first sale of bonds. The bond issue includes RUR2.5 billion (US$72 million) and US$100 million of three-year notes which will be sold in five equal parts, the report says citing the Moscow-based bank in a regulatory filing. The debt will be issued through Troika Invest, a special purpose company, the statement cited by the report said. 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 Troubled Company Reporter-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. UC RUSAL: Deripaska May Have to Sell Assets to Repay Alfa Loan -------------------------------------------------------------- Maria Kolesnikova and Yuriy Humber at Bloomberg News report Russian billionaire Oleg Deripaska may have to sell stakes in some of his companies, including aluminum maker United Company RUSAL, to repay US$650 million owed to Alfa Bank. Basic Element, Mr. Deripaska's holding company, has asked to renegotiate the debt, Andrey Yashchenko, corporate finance director at Basic Element, told Bloomberg News by telephone from Moscow. "We are not in a position of mass sales, but we're ready for mutually acceptable solutions," Mr. Yashchenko said, adding Basic Element will honor it obligations. According to Bloomberg News, Alfa said last week it was owed US$1 billion by Mr. Deripaska, and opposed debt talks. Bloomberg News recalls a court in Jersey in the Channel Islands last month froze GBP13.7 million (US$19 million) of assets belonging to EN+, a unit of Basic Element after a lawsuit was filed by an Alfa unit. About half the US$650 million Basic Element owes Alfa is "distressed debt" that's due for repayment this year, the news agency cited Mr. Yashchenko as saying. Mr. Yashchenko, as cited by the report, said Basic Element plans to find partners for some of its businesses after access to the debt market dried up. 2-Month Debt Reprieve As reported in the Troubled Company Reporter-Europe on March 10, 2009, 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 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 program 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. UC RUSAL: Pledges Stakes in Three Aluminum Units to VEB ------------------------------------------------------- The Financial Times' Catherine Belton reported last week United Company RUSAL pledged 25 per cent stakes in its main aluminium subsidiaries to the Russian state as an additional condition to a US$4.5 billion government bail-out loan. Bloomberg News relates the pledged stakes are in addition to the 25 percent of OAO GMK Norilsk Nickel that Rusal pledged in October. According to the FT, Rusal pledged its 25 per cent stake in Norilsk Nickel as collateral to Vnesheconombank (VEB). In an interview with the FT, Vladimir Dmitriev, VEB chairman, said his bank had taken collateral that fully covered the value of the US$4.5 billion bail-out loan his bank issued last October to prevent the Norilsk stake being seized by western creditors. Mr. Dmitriev, as cited by FT, said VEB and Rusal were not holding any talks either on restructuring the US$4.5 billion loan, which falls due at the end of October, or on an offer by Rusal to convert its nearly US$7 billion debt to state banks to a 16 per cent stake in the company in non-voting preferred shares. In an update, RosBusinessConsulting, citing newspaper RBC Daily, reported Monday that UC Rusal officially confirmed for the first time that not only 25 percent of Norilsk's shares are pledged under the US$4.5 billion loan but also similar stakes of the holding's two major aluminum plants - in Bratsk and Krasnoyarsk. 2-Month Debt Reprieve As reported in the Troubled Company Reporter-Europe on March 10, 2009, 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 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 program 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 Says Rating Pressures on Russia to Impact Oil and Gas Sector ------------------------------------------------------------------ Ensuring neutral free cash flow and adequate refinancing and bank support will be all-important for Russian oil and gas companies over the coming year, according to the report, published by Standard & Poor's Ratings Services. "Both are likely to be difficult, although S&P considers that within Russia the oil sector is much better positioned than other commodity sectors such as mining or steel," said Standard & Poor's credit analyst Andrey Nikolaev. "This is because S&P anticipate oil producers' cash flows will shrink less, as taxation on upstream profits is linked to Urals prices and thus works as a partial hedge, and because oil companies' large cost bases will likely enjoy substantial benefits from the fall in the Russian ruble." Conversely, S&P expects Russian refining profits to drop steeply in 2009. S&P considers that the oil and gas sector has above-average credit quality compared with other Russian industries, and therefore expect Russia's oil majors to have easier access to funding from government-related banks Sberbank (not rated), JSC VTB Bank (BBB/Negative/A-3), and Gazprombank (BB+/Negative/B). In S&P's view, access to financing from international banks should remain available, although it is likely to be more limited and in the form of secured pre-export facilities. S&P doesn't exclude some company-specific negative rating actions in certain circumstances�-as detailed in the report--although S&P's outlooks are stable on the majority of Russian oil and gas companies. This majority of stable outlooks partially reflects the anticipated positive impact of the ruble depreciation in 2009 and the fact that S&P's ratings are derived using conservative adjusted oil price assumptions such as S&P's unchanged long-term Urals oil price assumption of US$58/barrel. On the other hand, S&P has strongly revised downward S&P's short-term Urals credit assumptions--S&P uses US$38/barrel and US$48/barrel respectively for 2009 and 2010--which is inevitably pressuring credit metrics and S&P's estimates of free cash flow. Rating pressures on the Russian Federation (foreign currency rating: BBB/Negative/A-3; local currency rating: BBB+/Negative/A-2) are also potentially negative for Russia's oil and gas companies, as a negative rating action on the sovereign would likely impact the ratings of some state-owned companies and possibly further weaken their access to capital and the credit quality of Russia's state-owned banks. S&P's ratings on OJSC Oil Company Rosneft (BBB-/Stable/--) include one notch of uplift for potential extraordinary state support, while those on OAO Gazprom (BBB/Negative/---) factor in two notches of uplift. Gazprom and LUKoil OAO (BBB-/Stable/--) may be the most exposed to a rating change or, for LUKoil, an outlook change. For Gazprom, this is partly because its ratings are influenced by those on the Russian Federation, but also because S&P anticipates that its free cash flow could be highly negative in second-half 2009 and in 2010 and because it has large refinancing needs. Although LUKoil's debt remains moderate in S&P's view, the company's outlook could come under pressure if debt, notably short-term debt, rises more than expected, in light of recent acquisitions and its potential higher-than-peer negative free cash flow in 2009. On the other hand, S&P's stable outlooks for Rosneft, TNK-BP International Ltd. (BB/Stable/B), and OAO NOVATEK (BB+/Stable/--) are under less pressure. TNK-BP's rating could eventually be raised back to 'BB+', once shareholders have agreed on a new CEO and if related governance and strategic and financial policy uncertainties are clarified. ========= S P A I N ========= FONCAIXA EMPRESAS: Moody's Puts Provisional 'Ca' Rating on D Notes ------------------------------------------------------------------ Moody's Investors Service has assigned these provisional ratings to the debt to be issued by FONCAIXA EMPRESAS 1, Fondo de Titulizacion de Activos: -- (P)Aaa to the EUR600.0 million Series A1 notes -- (P)Aaa to the EUR600.0 million Series A2 notes -- (P)Aaa to the EUR600.0 million Series A3 notes -- (P)Aaa to the EUR3,435.0 million Series A4 notes -- (P)Baa3 to the EUR285.0 million Series B notes -- (P)Ba3 to the EUR480.0 million Series C notes -- (P)Ca to the EUR630.0 million Series D notes FONCAIXA EMPRESAS 1, Fondo de Titulizacion de Activos is a securitisation of the first draw-down of lines of credit (Credito Abierto) and of standard loans granted mainly to small- and medium-sized enterprises and originated by La Caixa (Aa1/P-1). The portfolio will be also serviced by La Caixa. According to Moody's, this deal benefits from several credit strengths including these: (1) almost 17% of the debtors are large companies with an annual turnover above EUR100 million; (2) good seasoning of 2.6 years; (3) experience of La Caixa as originator and servicer; (4) a strong swap agreement guaranteeing an excess spread of 0.75%; (5) a 10.5% reserve fund to cover potential shortfalls in interest or principal; and (6) a 12-month artificial write-off mechanism. However, Moody's notes that the deal also features credit weaknesses, notably: (1) around 28% of the borrowers are concentrated in the Real Estate sector; (2) not very granular portfolio; (3) around 29% of loans correspond to a flexible product structured as a line of credit (Cr�dito Abierto PYME); (4) pro-rata amortization of the notes; and (5) the negative impact of the interest deferral trigger on the subordinated series. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets was, as of March 2009, composed of a portfolio of 35,711 loans and 28,164 borrowers granted to Spanish enterprises. The loans were originated between 1990 and 2009, with a weighted average seasoning of 2.6 years and a weighted average remaining life of 11.3 years. Around 67% of the outstanding of the portfolio is secured by mortgage guarantees over different types of properties (63% of the portfolio being first-lien with a weighted average LTV of 53%). Geographically, the pool is concentrated in Madrid (27%), Catalonia (18%) and Andalusia (15%). At closing, there will be no loans in arrears. Moody's based the ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance information and other statistical information; (iii) the swap agreement hedging the interest rate risk; (iv) the credit enhancement provided through the GIC account, the excess spread, the cash reserve and the subordination of the notes; and (v) the legal and structural integrity of the transaction. Moody's initially analysed and will monitor this transaction using the rating methodology for EMEA SMEs loan-backed transactions as described in the Rating Methodology report "Moody's Approach to Rating Granular SME Transactions in Europe, Middle East and Africa", June 2007. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Series A1, A2, A3, A4, B and C at par on or before the rated final legal maturity date, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Series D. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only reflect Moody's preliminary credit opinions regarding the transaction. Upon a conclusive review of the final pool of assets and the final documentation, Moody's will endeavour to assign a definitive rating to the notes. A definitive rating, if any, may differ from a provisional rating. Date of previous rating action: no previous rating action since initial rating assignment. FORD MOTOR: Cuts Production in Europe Due to Waning Demand ---------------------------------------------------------- Christoph Rauwald at The Wall Street Journal reports that Ford Motor Co.'s European division is cutting production capacity due to weakening demand. WSJ says that the cuts will mainly affect Ford's operations in: -- Spain, wherein Ford's Valencia plant will move to two shifts from three on May 1; -- Germany, wherein the Saarlouis factory will stick to shorter working hours. Ford chose Saarlouis as the lead plant for all derivatives of the next-generation Focus. Ford will end the production of the Kuga and C-MAX models at the facility and won't replace them with other models; and -- Rome, wherein the engine plant in Cologne will share the production of a new, small-displacement EcoBoost gasoline engine with the Craiova manufacturing facility. Ford of Europe CEO John Fleming said in a statement, "We will do whatever it takes to ensure the continuing viability of our business, and further actions can be expected." According to WSJ, Ford Motor could take more steps to lower costs and foster profitability. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on March 6, 2009, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Ford Motor Co. to 'CC' from 'CCC+'. S&P also lowered the issue-level ratings on the company's senior secured term loan, senior unsecured debt, and subordinated debt, while leaving the issue-level rating on Ford's senior secured revolving credit facility unchanged. In addition, the counterparty credit ratings and issue-level ratings on Ford Motor Credit Co. (Ford Credit) and FCE Bank PLC remain unchanged. The outlooks on Ford and Ford Credit are negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. ============= U K R A I N E ============= ALPHAMET LLC: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Economic Court of Chernovtsy commenced bankruptcy supervision procedure on LLC Alphamet (EDRPOU 32750778). The Temporary Insolvency Manager is: D. Popovich Post Office Box 608 58010 Chernovtsy Ukraine The Court is located at: The Economic Court of Chernovtsy O. Kobylianska street 14 58000 Chernovtsy Ukraine The Debtor can be reached at: LLC Alphamet Biriukova St. 10 Sokiriany 60200 Chernovtsy Ukraine BIG ENERGIA: Placed in Receivership by Ukraine's Central Bank ------------------------------------------------------------- Reuters' Natalya Zinets reports that Ukraine's central bank on Monday placed BIG Energia in receivership, bringing the number of banks in the country in receivership and operating under restrictions to 11. BIG Energia, the report discloses, ranks 66th of the more than 180 banks operating in Ukraine. According to the report, many Ukrainian banks need to boost their capital following an outflow of deposits and problems in repaying loans in conditions of global financial crisis. EURO DWELLING: Creditors Must File Claims by March 27 ----------------------------------------------------- Creditors of LLC Euro Dwelling Building (EDRPOU 33007500) have until March 27, 2009, to submit proofs of claim to A. Petrash, Insolvency Manager. The Economic Court of Chernovtsy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 9/139/b. The Court is located at: The Economic Court of Chernovtsy O. Kobylianska street 14 58000 Chernovtsy Ukraine The Debtor can be reached at: LLC Euro Dwelling Building Gorokhov St. 3 Storozhynets 59000 Chernovtsy Ukraine INTERBROCKSERVICE LLC: Court Starts Bankruptcy Procedure -------------------------------------------------------- The Economic Court of Donetsk commenced bankruptcy supervision procedure on LLC Interbrockservice (EDRPOU 31222379). The Temporary Insolvency Manager is: D. Sinitsyn Office 12 50 years of USSR St. 143-b Donetsk Ukraine The Court is located at: The Economic Court of Donetsk Artem street 157 Donetsk Ukraine The Debtor can be reached at: LLC Interbrockservice Voinskaya St. 16 83096 Donetsk Ukraine PROCAPITAL LLC: Creditors Must File Claims by March 26 ------------------------------------------------------ Creditors of LLC Procapital (EDRPOU 32574601) have until March 26, 2009, to submit proofs of claim to J. Savitskaya, Insolvency Manager. The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent. The Court is located at: The Economic Court of Odessa Shevchenko Avenue 29 65019 Odessa Ukraine The Debtor can be reached at: LLC Procapital Office 29 Lustdorf Road 1 Odessa Ukraine ROMNY BREWERY OJSC: Creditors Must File Claims by March 27 ---------------------------------------------------------- Creditors of OJSC Romny Brewery (EDRPOU 00383066) have until March 27, 2009, to submit proofs of claim to: S. Soldatkin Insolvency Manager Post Office Box 30 40014 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 6/14-09. The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40011 Sumy Ukraine The Debtor can be reached at: OJSC Romny Brewery Frunze St. 6 Romny Sumy Ukraine SVIT-BUSINESS-SYSTEM LLC: Creditors Must File Claims by March 27 ---------------------------------------------------------------- Creditors of LLC SVIT-Business-System (EDRPOU 35139358) have until March 27, 2009, to submit proofs of claim to: N. Tischenko Insolvency Manager Office 31 Stelmakh St. 12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 49/38-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC SVIT-Business-System Liatoshynsky St. 4A/289 03191 Kiev Ukraine UKRCHEM LTD LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Economic Court of Odessa commenced bankruptcy supervision procedure on LLC Ukrchem Ltd. (EDRPOU 35697780). The Temporary Insolvency Manager is O. Sharmonov. The Court is located at: The Economic Court of Odessa Shevchenko avenue 29 65019 Odessa Ukraine The Debtor can be reached at: LLC Ukrchem Ltd. Melnitskaya St. 29 65033 Odessa Ukraine =========================== U N I T E D K I N G D O M =========================== AEOLUS CDO: Fitch Cuts Rating on GBP7.5 Mln Class D Notes to 'B' ---------------------------------------------------------------- Fitch Ratings has downgraded Aeolus CDO Ltd Series 2006-1, removed it from Rating Watch Negative, and assigned Outlooks. Rating actions: -- GBP37.5 million Class A (ISIN: XS0253868920): downgraded to 'A' from 'AA'; removed from RWN; assigned a Negative Outlook -- GBP7.5 million Class B (ISIN: XS0253869498): downgraded to 'BBB' from 'A'; removed from RWN; assigned a Negative Outlook -- GBP7.5 million Class C (ISIN: XS0253869738): downgraded to 'BB' from 'BBB'; removed from RWN; assigned a Negative Outlook -- GBP7.5 million Class D (ISIN: XS0253870074): downgraded to 'B' from 'BBB-' (BBB minus); removed from RWN; assigned a Negative Outlook The downgrades reflect Fitch's view on the credit risk of the rated tranches following the release of the agency's revised Structured Finance CDO rating criteria on December 16, 2008, as well as credit deterioration in the collateral pool. The application of the new SF CDO rating criteria incorporates Fitch's view on industry and vintage concentration risks and the likelihood of low recoveries upon default, particularly for thin tranches. Although the application of the new criteria has significantly impacted the transaction's ratings, credit deterioration in the portfolio coupled with limited subordination has particularly affected all the tranches. The portfolio contains 41 assets from 38 obligors, with the largest exposure accounting for approximately 6% of the outstanding portfolio amount, and the three largest obligors accounting for 17% of the outstanding portfolio amount. The portfolio contains CMBS (51%), prime RMBS (22%) and subprime RMBS (27%) assets. The largest country concentration is the United Kingdom (84%) and Germany (11%) while the largest vintage concentration is 2004 (22%), 2005 (43%) and 2006 (30%). In conducting its analysis, Fitch makes a three-notch downward adjustment for any names on RWN for default analysis in its Portfolio Credit Model. On an adjusted basis approximately 2% of the portfolio is on RWN compared to none at close in June 2006. Although there are no sub-investment grade assets in the portfolio, one asset (3% of the portfolio) has been downgraded three notches to 'A'. Given the current macroeconomic climate, Fitch expects further negative portfolio migration. Given the performance and Fitch's outlook, the credit enhancement levels (as a percentage of current portfolio notional) of 4.55%, 3.03%, 1.52% and 0% are not sufficient to justify the previous ratings of classes A, B, C and D respectively. The Negative Outlooks assigned to the notes reflect Fitch's long-term view that the notes could come under negative rating pressure over the next one to two years. Morgan Stanley issued four classes of credit-linked notes with total issuance of GBP60 million. The credit performance is linked to the credit performance of a portfolio of non-equally weighted, mostly UK CMBS and sub-prime RMBS assets. The portfolio may be replenished, subject to replenishment criteria including a minimum rating of 'AA-' (AA minus) (by two rating agencies) on any asset to be added into the portfolio. Where a new replacement reference obligation is rated 'AA+' or below, the junior noteholder must approve the replenishment. Reference obligations may be removed from the portfolio by the junior noteholder. ALBURN REAL: Fitch Junks Rating on GBP5.4 Mln Class E Notes ----------------------------------------------------------- Fitch Ratings has downgraded Alburn Real Estate Capital Limited's commercial mortgage-backed notes, due October 2016. Rating actions: -- GBP123.8 million class A (XS0285749833): downgraded to 'AA-' (AA minus) from 'AAA'; Outlook Negative -- GBP19.8 million class B (XS0285751904): downgraded to 'A-' (A minus) from 'AA'; Outlook Negative -- GBP18.6 million class C (XS0285753272): downgraded to 'BB-' (AA minus) from 'AAA'; Outlook Negative -- GBP18.6 million class D (XS0285753942): downgraded to 'B-' (B minus) from 'BBB'; Outlook Negative -- GBP5.4 million class E (XS0285755053): downgraded to 'CCC' from 'BBB-'; assigned a Recovery Rating of 'RR5' The downgrades reflect the negative impact of the currently prevailing conditions in the UK commercial property market on the creditworthiness of this transaction. The collateral was last re-valued at GBP240.2 in November 2007, reflecting a market value decline of approximately 4% since closing. Fitch estimates that, as a result of general deterioration experienced by the UK commercial property market, the collateral portfolio's value may have declined by a further 33% since the last revaluation. On this basis, the loan shows a current Fitch loan-to-value ratio of 114.0%, compared to a reported LTV of 74.7%. The property portfolio is granular, but secondary in nature. Part of the portfolio's office property component is located in "non- established" market locations. As a result, the portfolio has been particularly affected by the ongoing widening of the yield gap between prime and secondary quality assets. While the portfolio's net operating income has remained relatively stable and only experienced a modest decline since the transaction's closing, Fitch is of the opinion that the continuing softening of the occupational markets will likely adversely affect the portfolio's performance during the course of the next six to twelve months. Since closing, the interest coverage ratio has decreased to 1.41x from 1.46x. The transaction benefits from scheduled amortization, which would result in an exit LTV of 72.7% on the basis of the portfolio's reported value, and an exit LTV of 111.4% on the basis of Fitch's value estimate. The amortization proceeds are allocated on a pro-rata basis between the rated notes. Alburn Real Estate Capital Limited is a securitization of the A- note of a single commercial mortgage loan arranged by N M Rothschild & Sons ('A'/Outlook Stable/'F1'), which closed in February 2007. The loan is secured by first-ranking mortgages over forty five commercial properties located across the UK, comprising 29 offices, 13 industrial properties, two retail properties and one shopping centre. Fitch will continue to monitor the performance of the transaction. BERTIE SHOES: Appoints Joint Administrators from Deloitte --------------------------------------------------------- Neville Barry Kahn, Philip Stephen Bowers and Lee Anthony Manning of Deloitte LLP were appointed joint administrators of Bertie Shoes Ltd. on March 5, 2009. The company can be reached at: Bertie Shoes Ltd. The Triangle Stanton Harcourt Industrial Estate Stanton Harcourt Witney Oxfordshire OX29 5UT England BRADFORD & BINGLEY: S&P Cuts ST Counterparty Credit Rating to 'SD' ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its short-term counterparty credit rating on Bradford & Bingley PLC to 'SD' from 'A-1'. This rating action will last one day, after which Standard & Poor's intends, in accordance with its criteria and absent any other development, to restore B&B's short-term counterparty credit rating to 'A-1'. This corrects an omission in applying S&P's riteria at the time of B&B's nationalization on Sept. 29, 2008. Short-term senior debt obligations continue to be rated 'A-1'. This use of the 'SD' (selective default) notation reflects S&P's view that the recent orders by the U.K. Treasury that changed the terms of B&B's lower Tier 2 dated subordinated notes (Notes; unrated) constitute a "distressed exchange", and thus represent a selective default under Standard & Poor's criteria. Given that the original terms of the Notes did not allow for deferability of payment or principal, S&P regard the government action as a distressed exchange tantamount to an immediate default on the Notes, regardless of the fact that payments are current, and that B&B has stated that it will honor the next interest payment due. This is because, under S&P's criteria, S&P regard the potential change in the timing of payment of coupon and maturity as a loss of value to investors, because the Note holders face increased risk of future nonpayment and hence they may receive less than the original promise without compensation. Standard & Poor's only has a short-term counterparty credit rating on B&B and does not rate the Notes. Nevertheless, a Standard & Poor's issuer credit rating is a current opinion of an obligor's overall financial capacity to pay its financial obligations. Because S&P view the change of terms of the Notes as a distressed exchange, S&P has lowered the short-term counterparty credit rating to 'SD'. At this point, S&P sees the change in the short-term counterparty credit rating on B&B as temporary, lasting until March 18, 2009, when S&P intend, absent any other development, to restore the short-term counterparty credit rating on B&B to 'A-1'. S&P's criteria provide that, following the completion of a distressed exchange (which in this case occurred when the relevant U.K. Treasury orders were implemented), the issuer is no longer considered to be in selective default -- similar to an entity that has exited from bankruptcy. Accordingly, S&P intends to change the 'SD' rating as expeditiously as possible. This rating action reflects S&P's opinion that the government actions on the Notes do not affect the creditworthiness of B&B with respect to its senior obligations. In fact, S&P believes that B&B's creditworthiness with respect to senior obligations benefits from the extensive support and guarantee arrangements put in place by the U.K. government. Under the Banking (Special Provisions) Act 2008, the U.K. government has twice ordered changes to the terms of B&B's Notes without the consent of Note holders and without compensation. The first order, made when the U.K. nationalized B&B on Sept. 29, 2008, allowed the deferral of principal repayment on the Notes. The second order, made on Feb. 19, 2009, enables B&B to defer coupon payments on the Notes. The second order additionally amended the first order to permit B&B to defer the Notes' coupon and principal payments until B&B's liability (initially GBP18 billion) to the Financial Services Compensation Scheme had been satisfied in full. While under the original terms a missed payment would have been a legal event of default, the Treasury orders have the effect of suspending this definition of default while the FSCS loan is outstanding, unless B&B has positively stated that it will make the payment. In effect, these two orders together transform, albeit for a temporary but undetermined period, the Notes into deferrable hybrid capital instruments akin to upper Tier 2 notes. Due to this transformation, and from this point forward, a future deferral of coupon or principal of the Notes affected by the government order should not, in and of itself, lead to a change in S&P's short-term counterparty credit rating on B&B. S&P believes that these provisions are intended to protect the interests of the U.K. government by granting B&B the option to defer repayment of the Notes before the liability to the FSCS is discharged, thereby maintaining a regulatory capital cushion below the FSCS' exposure. S&P views these provisions as having been made in the context that, without government intervention in September 2008, B&B may have defaulted. BRIXTON PLC: Mulls GBP250 Mln Rights Issues; Debt Breach Likely --------------------------------------------------------------- The Financial Times' Catherine Boyle and Peter Stiff report that Brixton plc is considering launching a GBP250 million rights issue to secure fresh financing for the company. The FT earlier reported Peter Dawson, who was appointed chief executive after Tim Wheeler was ousted two weeks ago, said the group "was working flat out" on the various options, including a rights issue, asset sales, joint ventures and renegotiating debt financing. However, the FT states according to Mike Prew, real estate analyst at Nomura, Brixton's house broker, "Without successful intervention, we think that the business will almost certainly breach, and do so shortly. There is scope for asset sales and renegotiating covenants, but a GBP250 million equity injection would preserve the value of the business at what may be close to the bottom of the cycle." The FT recalls the value of the group's portfolio, which is mainly in West London, has fallen 33.4 per cent since the market peak in June 2007 to GBP1.8 billion at the end of last year. Brixton, which scrapped its final dividend, has warned it could breach banking covenants on its GBP862.2 million debt pile if property values fall a further 10 per cent, the FT notes. Brixton has also warned that its auditor's annual report is likely to question the industrial property group's ability to continue as a going concern and "indicate the existence of material uncertainty", Graham Ruddick writes for The Daily Telegraph. Share Price Brixton's share price has tumbled more than 85pc so far this year because of fears about its large debts amid falling property values, The Daily Telegraph relates. The shares rallied 2.5p � 17pc � to 17.25p on Monday, March 16, as Brixton insisted it remains compliant with covenants at present, The Daily Telegraph recounts. Annual Results Brixton incurred a GBP768.8 millon annual pre-tax loss, compared to a GBP58.2 million profit in 2007, The Daily Telegraph discloses. Brixton's vacancy rates also soared from 15.4pc in December 2007 to 20.3pc on March 10, 2009, The Daily Telegraph adds. According to The Daily Telegraph, the group has suffered from businesses collapsing, including Woolworths subsidiary Entertainment UK, and faces a mounting empty rates bill of around GBP8 million. About Brixton plc Headquartered in London, Brixton plc -- http://www.brixton.plc.uk/ -- owns or manages more than 19m sq ft of industrial and warehouse space in the UK. The portfolio is located predominantly in the South East of England with a particular focus on the Heathrow and West London markets. Brixton operates through two principal subsidiary companies. Brixton Investments is responsible for acquisitions, disposals and development. B-Serv is the customer service-focused manager of property owned by Brixton and its joint ventures, Equiton and Heathrow Big Box Fund. BRIXTON PLC: Fitch Cuts Senior Unsecured Rating to 'BB+' -------------------------------------------------------- Fitch Ratings has downgraded Brixton Plc's senior unsecured rating to 'BB+' from 'BBB', its Long-term Issuer Default Rating to BB from 'BBB-' (BBB minus) and Short-term IDR to 'B' from 'F3'. The agency has maintained the Long-term IDR and senior unsecured rating on Rating Watch Negative. The downgrades reflect Brixton's lack of any advanced plans to deal with a potential covenant breach following the June 2009 test date or upcoming debt maturities in 2010. During the FYE08 annual results presentation on March 16, 2009, Brixton's management gave little tangible comfort regarding plans for equity raising, possible property disposal amounts or progress on renegotiation of finance facilities, although a general statement regarding the procurement of additional financial flexibility, including raising additional equity, was provided. There is press comment that Brixton may try to issue up to GBP250 million of new equity. This would be unlikely to be a rights issue, given the current share price and is more likely to be a placing with existing and new investors. Nevertheless, Fitch believes there is a major execution risk associated with this process. The other alternatives of selling property assets and/or renegotiating financing covenants and maturity dates also present significant challenges in terms of cost and likely success of execution. Fitch also notes, following the company's March 16, presentation, that while the annual audit is unqualified, Brixton's accounts still remain to be signed by its auditors and may contain an emphasis of matter clause. The agency originally placed Brixton's ratings on RWN on March 4, 2009 following unexpected management changes and increasing concern over the lack of a communicated strategy for addressing reduced covenant headroom, and debt maturities of GBP380 million in 2010, including a GBP275 million bond. At December 31, 2008, Brixton's gearing was 110% (against bond and bank covenants of 175%) and unsecured asset cover was 1.86x (versus bank covenants at a minimum of 1.67x), leaving only enough headroom to absorb a further 10% reduction in the company's property values before a breach occurs. Consensus forecasts for reductions in UK industrial space values are currently around 16% for 2009, and hence a breach of covenants could occur as early as the June 2009 test date. Brixton's operational performance was satisfactory in FYE08 (the vacancy rate on its portfolio including unlet developments was 17.3% and 10.6% excluding unlet developments against a UK industrial average of 14.6% Source: Independent Property Databank Ltd, January 2009). However, the company's operational performance for FYE09 could be affected by a possible rent roll reduction from significant lease expiries in 2009 and 2010 as well as increased tenant defaults. The income profile has also been affected by the loss of empty rates relief, which has added a full year GBP3.8 million to costs in 2008. For FYE08, Fitch Adjusted Net Interest Cover (NIC) fell to 1.7x (2.0x FYE07), due to incremental interest expense on acquisitions, the remaining costs on the development program and higher attendant voids. On a positive note, with no development under construction, Brixton's contracted capital commitments at FYE08 amounted to just GBP2.8 million. Fitch will seek to resolve the RWN at the earliest opportunity, but within three months. At the end of this period, should a covenant breach still be likely and/or there are no firm management plans in place to repay 2010 debt maturities, then Brixton's ratings could be further downgraded, possibly by more than one notch. Should a GBP250 million equity issue be fully successful, Fitch would review the company's ratings accordingly. CADENZA: Lack of Funding Spurs Liquidation ------------------------------------------ The Times' Catherine Boyle reports that Cadenza, a property company run by Tony Pidgley Jr., has gone into liquidation. Mr. Pidgley Jr., son of Berkeley Group founder Tony Pidgley, put Cadenza, which specialized in urban regeneration and redeveloped sites, into voluntary liquidation five days ago, The Times relates. The Times recalls Cadenza ran into trouble after Heritable Bank, which was supposed to provide funding for two of the property company's developments, went into receivership last year. Mr. Pidgley Jr. told The Times: "We were in a very difficult situation where our bank was unable to fulfill its funding commitments. The bank's administrators ripped up our agreements. I tried to refinance with a number of other banks, but you just can't refinance. The real issue is that the bank is in administration and the failure of the bank is unprecedented." The company's liquidation is being handled by Valentine & Co, the Times notes. COAST STORES: Appoints Joint Administrators from Deloitte --------------------------------------------------------- Neville Barry Kahn, Philip Stephen Bowers and Lee Anthony Manning of Deloitte LLP were appointed joint administrators of Coast Stores Ltd. on March 5, 2009. The company can be reached at: Coast Stores Ltd. The Triangle Stanton Harcourt Industrial Estate Stanton Harcourt Witney Oxfordshire OX29 5UT England DECO 11: Fitch Junks Rating on GBP28.7 Mln Class D Notes -------------------------------------------------------- Fitch Ratings has downgraded and affirmed DECO 11 - UK Conduit 3 p.l.c's commercial mortgage-backed notes, due January 2020. Rating actions: -- GBP200.9 million class A1-A due January 2020 (XS0279810468) affirmed at 'AAA'; Outlook revised to Negative from Stable -- GBP73.7 million class A1-B due January 2020 (XS0279812597) downgraded to 'AA+' from 'AAA'; Outlook revised to Negative from Stable -- GBP0.51 million class X due January 2020: affirmed at 'AAA'; Outlook Stable -- GBP45 million class A2 due January 2020 (XS0279814452) downgraded to 'A+' from 'AAA'; Outlook revised to Negative from Stable -- GBP26.7 million class B due January 2020 (XS0279815426) downgraded to 'BBB+' from 'AA'; Outlook Negative -- GBP36.6 million class C due January 2020 (XS0279816580) downgraded to 'B' from 'A'; Outlook Negative -- GBP28.7 million class D due January 2020 (XS0279817398) downgraded to 'CC' from 'BBB'; assigned a Recovery Rating of 'RR5' The downgrade of five tranches reflects Fitch's expectations that deteriorating market conditions have weakened the creditworthiness of the loans securitized in this transaction. The loan portfolio has a reported weighted average loan-to-value ratio of 84%, as of the January interest payment date. This compares to an estimated WA Fitch LTV of 112.9%, reflecting an overall market value decline of 26.3%. The pool is dominated by the Mapeley Gamma Loan (54.6%). The remaining portfolio is made up of 13 smaller loans, four of which contribute between 6% and 10% of the current balance, while none of the remaining nine contribute more than 2% of the current balance. Some of the smaller loans are significantly weaker and have a substantially increased likelihood of incurring a loss which would, in turn, result in a loss on the junior notes. The Mapeley loan (54.6% of the portfolio) is secured by 24 office properties located across the UK, typically in secondary locations. Although the portfolio is predominantly let to the government, it suffers from a short WA lease term of 5.3 years: approximately 50% of the passing rent is scheduled to expire by loan maturity in October 2016. This could severely undermine the ability of the loan to meet its debt service payments. The portfolio was last re-valued in October 2008, which resulted in a MVD of 14%; since that time, Fitch estimates a further MVD of 20%, which results in a Fitch LTV of 109%. Wildmoor Northpoint (9.7% of the portfolio) has the earliest maturity date of the pool, in July 2010. The loan is secured over the Northpoint Shopping Centre, a secondary shopping centre located in Bransholme, a suburb of Kingston upon Hull in the north of England. The center is currently 92% occupied, with a WA lease term of 6.4 years, and is anchored by a Somerfield supermarket (4.7% of passing rent) with an unexpired lease term of 15 years. Other large tenants include Wilkinsons (4.5%), Iceland (3.9%) and Poundland (3.8%). The approaching maturity date leaves the loan heavily exposed to refinancing risk in current market conditions. In addition, the Fitch LTV of 123.7% implies that there is no longer any equity interest in the property. The MVD of 37% since closing is primarily due to further outward yield movements. At closing, the property had a yield of 4.9% based on the original valuation. The property was re-valued towards the end of 2008, however, the revaluation has not been made available by the servicer on this loan, Capmark Services (Ireland) Limited ('CPS2+'/Rating Watch Negative). The Paladru loan (1.4% of the portfolio) has been specially serviced by Hatfield Philips International Limited, rated 'CSS2', since April 2008. The asset is a shopping centre in Paington, Devon that is almost 50% vacant and at the January interest payment date, the servicer reported that the asset was non-income producing. The special servicer has appointed a LPA receiver who aims to sell the property within 12 months, following the completion of capital expenditure works aimed at improving the centre. Given the extreme deterioration in collateral performance, Fitch only expects minimal recoveries on this loan, as evidenced in the Fitch LTV of 268%. Fitch will continue to monitor the performance of the transaction. FORBURY HOTEL: Goes Into Administration; Baker Tilly Appointed -------------------------------------------------------------- The Forbury hotel in Reading has gone into administration after being hit by the recession, caterersearch reports. The report relates the hotel called in administrators Baker Tilly Restructuring and Recovery Wednesday last week. Matthew Wild and Mark Wilson of Baker Tilly were appointed administrators of the hotel, the report discloses. Mr. Wild, as cited by the report, said the hotel will continue to trade while a buyer is sought for the property as a going concern. He said he had already received calls from 20 different interested parties, the report notes. "We are keen to make it clear that the hotel is continuing to trade throughout the process and all staff will be retained," the report quoted Mr. Wild as saying. JJB SPORTS: Lenders Extend Standstill Arrangements Until March 24 ----------------------------------------------------------------- JJB Sports PLC on Tuesday said it has agreed a further extension of the standstill arrangements with its lenders and continues to progress the disposal of its Fitness Clubs business. JJB said its lenders have agreed to extend the standstill arrangements to March 24, 2009, subject to the lenders remaining satisfied with the progress of the company's proposed disposal of its Fitness Clubs business. No additional fee has been charged by the lenders for this extension, which has been granted in order to allow the company to reach a definitive agreement for the disposal of its Fitness Clubs business with a potential purchaser. JJB also noted the recent press speculation regarding the possible implementation of a company voluntary arrangement (CVA). The company confirmed that it is currently exploring a number of solvent restructuring options which would be undertaken with the support of its lenders. According to The Financial Times' Samantha Pearson, although the Fitness Clubs business's original valuation of GBP100 million is likely to have dropped to GBP70 million by now, a sale would still wipe out the company's debts, which stood at GBP60 million. The division, the FT noted, remained profitable in recent months. Company Voluntary Arrangement In a March 15 report The Sunday Times' Jenny Davey disclosed JJB is in talks with landlords to offload about 30 shops. JJB, the report stated, wants to strike a deal with landlords to make termination payments to get out of its lease agreements or pay cut-price rents for the rest of the lease term. However, citing City sources, the report noted that if a deal can't be agreed on a store-by-store basis with landlords, JJB was working on plans to ringfence these stores and put them into a CVA under which the rest of the company would remain a solvent listed business. About JJB Sports Headquartered in Wigan, England, JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is engaged in the retailing of sportswear and sporting equipment. The company also operates a chain of fitness clubs, which has a smaller number of indoor soccer centers attached to them. It also operates a television broadcasting and marketing business, which specializes in the marketing of golf products and fitness equipment through Sky Television. On Oct. 2, 2008, the Troubled Company Reporter-Europe reported that Deloitte & Touche LLP raised going concern issues about JJB Sport plc's interim report and condensed financial statements for the 26 weeks to July 27, 2008. Deloitte pointed to material uncertainties that may cast significant doubt on the group's ability to continue as a going concern. These material uncertainties comprise: * ongoing availability of the original facilities given the actual and projected covenant breaches; * the ability to repay the bridging facility from asset sales or seasonal cash flows; * achieving the sale of non-core businesses and/or assets within the timescales and at the values projected; and * the achievability of forecasts and key assumptions within the forecasts. Deloitte warned there is a risk that the material uncertainties as to the group's ability to continue as a going concern may not be resolved satisfactorily. LANCE HOMES: Appoints Joint Administrators from BDO Stoy Hayward ---------------------------------------------------------------- Andrew Howard Beckingham and William Matthew Humphries Tait of BDO Stoy Hayward LLP were appointed joint administrators of Lance Homes Ltd. on March 5, 2009. The company can be reached through BDO Stoy Hayward LLP at: Arcadia House Maritime Walk Ocean Village Southampton Hampshire SO14 3TL England MAYLUX ENGINEERING: Taps Joint Administrators from Grant Thornton ----------------------------------------------------------------- Leslie Ross and David Riley of Grant Thornton UK LLP were appointed joint administrators of Maylux Engineering Ltd. on March 5, 2009. The company can be reached at: Maylux Engineering Ltd. Unit 12D & E Horwich Loco Industrial Estate Horwich Bolton BL6 5UE England MOHAVE LTD: Calls in Joint Administrators from Deloitte ------------------------------------------------------- Neville Barry Kahn, Philip Stephen Bowers and Lee Anthony Manning of Deloitte LLP were appointed joint administrators of Mohave Ltd. on March 5, 2009. The company can be reached at: Mohave Ltd. The Triangle Stanton Harcourt Industrial Estate Stanton Harcourt Witney Oxfordshire OX29 5UT England NOEL ACQUISITIONS: Appoints Joint Administrators from Deloitte -------------------------------------------------------------- Neville Barry Kahn, Philip Stephen Bowers and Lee Anthony Manning of Deloitte LLP were appointed joint administrators of Noel Acquisitions Ltd. on March 5, 2009. The company can be reached at: Noel Acquisitions Ltd. The Triangle Stanton Harcourt Industrial Estate Stanton Harcourt Witney Oxfordshire OX29 5UT England ROYAL BANK: Ex-CEO Agrees to Repay GBP3 Mln in Retirement Funds --------------------------------------------------------------- Bloomberg News's Gonzalo Vina reports The Royal Bank of Scotland Group Plc's former Chief Executive Officer Fred Goodwin agreed in principle to repay a GBP3 million (US$4.2 million) payment granted on his retirement. The report says in a letter to the parliamentary committee, the bank said Mr. Goodwin would return the money to his pension fund. Last month, RBS sought legal advice on Mr. Goodwin's annual pension after reports say Mr. Goodwin was already drawing the pension from his retirement pot. The Associated Press relates Mr. Goodwin was awarded an annual pension of GBP703,000 (US$989,000) when he stepped down in November as RBS ran into severe difficulties and had to be propped up with GBP20 billion in public money. Treasury minister Paul Myners, Bloomberg News relates, said decisions taken on Mr. Goodwin's pension were "beyond comprehension," as the government pumped billions into the bank to save it from collapse. "Someone in RBS took the decision to reward him with a more generous pension than was required," Bloomberg News quoted Minister Myners as saying. "It should be the board not a government minister" that determines the size of the pension, he added. According to Bloomberg News, lawmakers were quizzing Minister Myners on how Mr. Goodwin was allowed such a pension when he was behind the biggest loss in U.K. corporate history. Huge Loss As reported in the Troubled Company Reporter-Europe on Feb. 27, 2009, RBS incurred a GBP24.0 billion full year net loss from a net income of GBP6.8 billion in 2007, the bank's results for the full year ending Dec. 31, 2008 show. Total income for 2008 decreased 20% to GBP26.8 billion from GBP33.5 billion in 2007. Credit impairment losses excluding reclassified assets increased to GBP6.9 billion in 2008, compared with GBP2.1 billion in 2007. Losses for 2008 relating to credit market exposures totalled GBP7.7 billion, net of hedging gains of GBP1.6 billion. After reviewing the carrying value of goodwill and other purchased intangible assets, RBS has recorded an impairment charge of GBP16.1 billion net of a tax credit of GBP715 million. Of this charge, GBP7.6 billion relates to part of the goodwill in respect of the acquisition of ABN AMRO Holding N.V., while other significant impairments have been recorded on part of the Citizens/Charter One goodwill of GBP4.3 billion, part of the NatWest goodwill of GBP2.7 billion and other goodwill of GBP720 million. Other intangible asset impairments of GBP1.3 billion principally relate to the write-down in the value of customer relationships recognised on the acquisition of ABN AMRO. RBS's balance sheet as of Dec. 31, 2008 showed total assets of GBP2.2 trillion, total liabilities of GBP2.1 trillion and total equity GBP64.3 billion. Restructuring Plan To correct factors that made its business particularly vulnerable to the downturn, RBS plans to create a "non-core" division during the second quarter, separately managed, but within the existing legal structures of the Group and matrix-managed to donating divisions where necessary. This division will have approximately GBP240 billion of third party assets, GBP145 billion of derivative balances and GBP155 billion of risk-weighted assets, RBS said. As part of this effort, RBS said it is intended that the Group's representation in approximately 36 of the 54 countries where it operates will be significantly reduced or sold. The income, expenses, impairments and credit market and other trading asset write-downs associated with the non-core division in 2008 were approximately GBP3.9 billion, GBP1.1 billion, GBP3.2 billion and GBP9.2 billion respectively. In addition, RBS said the Group aims of achieving run-rate reductions by 2011 of greater than GBP2.5 billion (16% of 2008 cost base) at constant exchange rates, a process which will involve reductions in employment. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Pension Funds Suing Bank on False Information --------------------------------------------------------- BBC News reports Strathclyde Pension Fund (SPF) is condering filing a suit against The Royal Bank of Scotland (RBS) for compensation accusing RBS of withholding the true extent of the bank's problems before a government bailout last year. SPF, which has more than 180,000 members, said it was adopting a "wait and see" approach to legal action in the US being taken by two council schemes in England, the report relates. According to the news agency, RBS gained an extra GBP12 billion from shareholders following the conclusion of a successful share issue in June of last year. Five months later, it accepted a GBP20 billion rescue package from the government in exchange for a 58% stake in the bank, which was subsequently increased to 68%, BBC News says. Meanwhile, Bloomberg News reports two U.K. pension funds have hired Cherie Blair, the wife of former British Prime Minister Tony Blair, to work on a U.S. lawsuit against RBS. According to Bloomberg News, Ms. Blair -- a barrister, or specialist trial attorney, and a part-time judge practicing at Matrix Chambers in London -- is working alongside Californian law firm Coughlin Stoia Geller Rudman & Robbins LLP on a class-action lawsuit accusing RBS of "falsely reassuring" investors about the bank's financial stability prior to the collapse in its share price last year. The suit, filed in New York on behalf of the North Yorkshire and Merseyside local government pension funds, also names former chief executive Fred Goodwin and former chairman Tom McKillop as defendants, Bloomberg News says. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: To Keep Most of Businesses in China ----------------------------------------------- SinoCast Daily reports Sir Philip Hampton, The Royal Bank of Scotland Group plc chairman, disclosed the bank will sell Asia retail banking and financial services for small and medium companies but maintain 70 percent of China business unsold in coming years. RBS's businesses in China include corporate wholesale banking, cash management and trade financing. According to the Daily, the bank sent memos to the would-be investors interested in the Asia retail banking and SME financial services last week but has not determined to sell the assets to one or more investors. RBS has hired Morgan Stanley to explore the potential Asian asset sale, people with direct knowledge of the matter told Reuters last month. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. SELIGO: Goes Into Administration; Shipleys Appointed ---------------------------------------------------- Juliet Dennis at TravelWeekly reports that Birmingham-based accomodation only specialist has gone into administration. The report relates the company was placed in the hands of administrator Conrad Beighton, of chartered accountant Shipleys, on Tuesday following an application last week. However, according to the report the company is thought to have continued trading following a so-called pre-pack sale. Mr. Beighton, as cited by the report, said a specialist firm of travel accountants had sought expressions of interest from businesses that might want to acquire Seligo, although he declined to give details of the sale. ABTA Fine In a March 13 report TravelWeekly disclosed Seligo is appealing after it was fined by ABTA's code of conduct committee. However, ABTA declined to reveal the amount or the specific circumstances, the report noted. The company's appeal will be heard today, March 19, the report stated. The report recalled ABTA director Steven Freudmann, non-executive chairman of Alpha Prospects, which owns Seligo, last week revealed it had stepped down as director of one of the group's other subsidiaries, Unpackaged Holidays, because of a conflict of interest. SIG PLC: Mulls GBP300 Million Rights Issue ------------------------------------------ SIG plc is considering launching a rights issue to raise fresh capital to tackle debts of more than GBP700 million, Graham Ruddick at Telegraph.co.uk reports. Citing the Sunday Telegraph, the report discloses SIG, which has a market value of just GBP159.5 million, has asked its brokers at JP Morgan Cazenove and Panmure Gordon to approach investors over a potential GBP300 million rights issue. The report relates Howard Seymour, an analyst at Numis said SIG needs to make any cash call large enough to significantly lessen the company's debts, which have risen sharply as a result of sterling's fall against the euro. The report recalls in January SIG closed 80 branches, resulting in the loss of 1,000 jobs. The company, the report states, has been hit by the downturn in the building markets sector. According to the report, there are growing concerns that poor trading conditions will cause SIG to breach banking covenants. Headquartered in Sheffield, United Kingdom, SIG plc -- http://www.sigplc.co.uk/-- is engaged in the supply of specialist products to construction and related markets. The company has four core business sectors: Insulation & Building Environments, Exteriors, Interiors and Specialist Construction Products. It employs over 13,000 people. YELL GROUP: S&P Cuts Long-Term Corporate Credit Rating to 'B+' -------------------------------------------------------------- Standard & Poor's Rating Services said it lowered to 'B+' from 'BB-' its long-term corporate credit rating on U.K.-based classified directories publisher Yell Group PLC. The outlook is stable. "The rating downgrade reflects Standard & Poor's view that the deepening economic downturn will hinder the group's operating performance in financial years 2009 and 2010 (ending March 31)," said Standard & Poor's credit analyst Manuela Gabetta. The downturn is exacerbating the expected decline in the print segment resulting from a shift away from traditional print advertising to online media. "As a result, S&P believes that Yell will remain highly leveraged and S&P expects further reductions in headroom under the recently revised maintenance covenants relating to Yell's senior credit facilities," said Ms. Gabetta. On Dec. 31, 2008, Yell reported (gross) consolidated debt of GBP4.4 billion (including about GBP55 million of deferred financing fees). The accelerated economic slowdown experienced since September 2008, combined with intense competition in Yell's main markets, caused the group's organic revenues to decline by about 4% in the third quarter of financial 2009 ended Dec. 31, 2008. Based on the company's forecasts, S&P expects organic revenues to decline by about 12% year on year in the quarter ended March 31, 2009. S&P believes that advertising in the group's key markets, the U.K., the U.S., and Spain, will remain among the most severely affected by the current economic downturn in 2009. To mitigate the increasing pressure on revenues, Yell is implementing an additional GBP200 million of operating cost-saving initiatives, which should bring some benefit to the group's EBITDA generation in financial years 2009 and 2010. However, given the deepening economic deterioration, S&P believes that the group's EBITDA (at constant exchange rates) in financial year 2010 could decline at a rate well above the 2% drop expected in the full year ended March 31, 2009. In particular, S&P believes that revenues at the group's Spanish business will be the most severely affected. S&P envisages that for the 12 months to March 31, 2009, Yell's fully adjusted gross debt-to-EBITDA ratio (at constant exchange rates) will be in line with the 5.2x posted at the end of March 2008. This is a result of the additional operating restructuring expense incurred in the year, and in spite of some reduction in net debt on the balance sheet. In addition, this figure partly reflects S&P's assumption that Yell's pension scheme will post a deficit in the current financial year, following the turmoil in the financial markets, compared with the GBP46 million surplus in 2008. "The stable outlook primarily reflects Standard & Poor's view that the group will be able to weather the top-line operating pressure expected in financial year 2010, enabling it to limit the envisaged deterioration of the headroom under its credit facilities maintenance covenants to 10%, while maintaining healthy cash flow generation," said Ms. Gabetta. Such a positive trend should bode well for a timely refinancing of the April 2011 debt maturity. S&P believes that proactive management of this maturity by the company would support the rating. Any indication of covenant headroom dipping to less than 10% or of weaker-than-expected discretionary cash flow generation could put pressure on the ratings. Key constraints to rating upside are the company's high leverage and S&P's expectation of continuing declines in revenue, profit, and covenant headroom. * Adam Penny Joins Brown Rudnick as Partner in London Office ------------------------------------------------------------ Adam Penny has joined the Brown Rudnick's London office as a Partner in the international law firm's Corporate & Securities Department. Mr. Penny has over fifteen years of experience in M&A and corporate finance including seven years in investment banking. As an advisor to large corporations, banks, insurance companies and global private equity firms, Mr. Penny has assisted clients with complex cross-border transactions and fundraisings across a wide range of geographies. He has advised on deals in the UK, Switzerland, Turkey, Dubai, the Ukraine, Kazakhstan, Russia, Bulgaria, and Slovenia. He has led complex public market M&A deals acting for targets in hostile offers, bidders in unsolicited and competing offers and participants in consortium bids. From 2001 to 2008, Mr. Penny was a Director in the Mergers and Acquisitions Group at Credit Suisse in London. During his time at Credit Suisse he advised international companies such as Swiss Re, Novartis, The National Bank of Greece, Bank of Cyprus and Zimmer Inc. He also worked closely with financial sponsors such as Apax Ventures, Permira, JER Partners, Corsair and Kingsbridge Capital. At Credit Suisse, he was most recently focused on financial institutions, playing a key role in the continued development of the Credit Suisse Financial Institutions franchise across EMEA. Prior to Credit Suisse, Mr. Penny was a senior solicitor in the corporate practice group at ASHURST in London. During his time at ASHURST he led public and private M&A deals acting for both strategic acquirers and financial sponsors. He also advised on equity offerings on both AIM and the Main Market in London. Announcing the new appointment, Brown Rudnick CEO Joseph F. Ryan commented, "Adam's background and experience complement the work of both our European corporate and finance practices. His deep knowledge of the M&A and investment banking industries will be a valuable asset for clients seeking to identify and capitalize on opportunities in the changing regulatory and business environments." Sonya Van de Graaff earlier joined Brown Rudnick's London office as a partner in the firm's Bankruptcy & Corporate Restructuring Group. Ms. Van de Graaff has an international practice encompassing a broad range of finance, distressed and insolvency situations. She works with hedge funds, corporations, investment banks and other financial institutions that are active in the distressed and restructuring markets. Prior to joining Brown Rudnick, Ms. Van de Graaff was Managing Director Principal and Solicitor with Bear, Stearns International Ltd. in London. About Brown Rudnick Brown Rudnick -- http://www.brownrudnick.com-- is an international law firm with offices in the United States and Europe. The firm represents clients from around the world, providing business-focused solutions that address today's ever- changing, ever-demanding competitive marketplace. With an entrepreneurial and collaborative mindset, Brown Rudnick offers a broad slate of capabilities and talents in areas that include: Finance, Bankruptcy & Corporate Restructuring, Corporate & Securities, Intellectual Property, Complex Litigation, Government Law & Strategies, Government Contracts, Energy, Real Estate, and Health Law. The Brown Rudnick Center for the Public Interest -- http://www.brownrudnickcenter.com-- is a measure of the firm's strong commitment to the community and serves as an umbrella entity encompassing the firm's pro bono legal work, charitable giving, community involvement and public interest efforts. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 14-16, 2009 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition St. John's University School of Law, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 1-4, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 16-19, 2009 COMMERICAL LAW LEAGUE OF AMERICA 2009 Chicago/Spring Meeting Westin Hotel on Michigan Ave., Chicago, Ill. Contact: (312) 781-2000; http://www.clla.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners Alexander Hamilton Custom House, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 4, 2009 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference New York Marriott Marquis, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 7-8, 2009 RENASSANCE AMERICAN MANAGEMENT, INC. 6th Annual Conference on Distressted Investing - Europe The Le Meridien Piccadilly Hotel, London, U.K. Contact: 1-903-595-3800 or http://www.renaissanceamerican.com/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 12-15, 2009 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-14, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ July 29-Aug. 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Westin Hilton Head Island Resort & Spa, Hilton Head Island, S.C. Contact: http://www.abiworld.org/ Aug. 6-8, 2009 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Conference Hotel Hershey, Hershey, Pa. Contact: http://www.abiworld.org/ Sept. 10-11, 2009 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 2, 2009 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center, Washington, D.C. Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Oct. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Paris Las Vegas, Las Vegas, Nev. Contact: http://www.abiworld.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *