/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090324.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, March 24, 2009, Vol. 10, No. 58 Headlines A U S T R I A BACAJ LLC: Claims Registration Period Ends April 8 IMPRESA LLC: Claims Registration Period Ends April 8 MEWO LLC: Claims Registration Period Ends April 8 MI & MI: Claims Registration Period Ends April 8 STILL LLC: Claims Registration Period Ends April 9 B E L G I U M FORTIS BANK: Fitch Junks Rating on EUR3BB Equity-Linked Securities * BELGIUM: EC Okays Temporary Aid Scheme to Companies in Flanders B U L G A R I A EUROBANK EFG: Fitch Downgrades Individual Rating to 'D' C Y P R U S RESERVE INVEST: Moody's Confirms 'B3' LT Foreign Currency Rating D E N M A R K AMALIE I: Moody's Cuts Rating on Tranche C Notes to 'Ba2' KALVEBOD PLC: Moody's Lowers Rating on Class B Notes to 'B3' G E R M A N Y DACHDECKEREI MULDENDACH: Claims Registration Period Ends April 8 DER REISELADEN: Claims Registration Period Ends May 4 GENERAL MOTORS: Germany Won't Buy Stake in Opel, Ms. Merkel Says GERD MOENNICH: Claims Registration Period Ends May 22 GFS TRANSPORT: Claims Registration Period Ends May 5 HIP INSTITUT: Claims Registration Period Ends May 8 HYPO REAL ESTATE HOLDING: Lower House OKs Nationalization of Bank KIC KUECHENMARKT: Claims Registration Period Ends May 4 TRONOX INC: German Units File for Insolvency G R E E C E EMPORIKI BANK: Moody's Cuts Financial Strength Rating to 'D+' I C E L A N D KAUPTHING BANK: Luxembourg Unit Buys Stanford's Stake in Mulberry REYKJAVIK SAVINGS: FME Takes Over Operations SPARISJODABANKI: FME Takes Over Operations * ICELAND: Launches Probe Into Five Pension Funds I R E L A N D QUALCERAM SHIRES: May Opt for Examinership or Receivership I T A L Y CARLO TASSARA: Owner Seeks Debt Moratorium Extension TISCALI SPA: Founder Returns as Firm Grapples With Debt K A Z A K H S T A N ALLIANCE BANK: S&P Puts 'B/B' Rating on Negative CreditWatch AS-TECK-2 LLP: Creditors Must File Claims by April 24 BIDAI SAUDA: Creditors Must File Claims by April 24 BTA BANK: S&P Downgrades Counterparty Credit Ratings to 'CCC+/C' BTA BANK: S&P Cuts Ratings on Four Transactions to 'BB-' BTA IPOTEKA: S&P Lowers Counterparty Credit Ratings to 'CCC+/C' DOSTYK COMPANIYASY: Creditors Must File Claims by April 24 EL-KUAT LLP: Creditors Must File Claims by April 24 GAS SERVICE: Creditors Must File Claims by April 24 KAZKOMMERTS DPR: S&P Cuts Ratings on 11 Transactions to 'BB-' MAN SHUGAR: Creditors Must File Claims by April 24 OVTI-N LLP: Creditors Must File Claims by April 24 SILK WAY: Creditors Must File Claims by April 24 TEMIR BANK: S&P Downgrades Counterparty Credit Ratings to 'CCC+/C' TEMIR TULPAR: Creditors Must File Claims by April 24 VOSTOK ROSS: Creditors Must File Claims by April 24 K Y R G Y Z S T A N SAVOIR FAIRE: Creditors Must File Claims by April 3 TELCOM PROJECT: Creditors Must File Claims by April 3 L A T V I A * LATVIA: European Commission Authorizes Temproary Aid Scheme L I T H U A N I A UAB BITE: Fitch Cuts Long-Term Issuer Default Rating to 'RD' L U X E M B O U R G FORTIS LUXEMBOURG: Moody's Junks Rating on Series 180 Notes N E T H E R L A N D S BITE FINANCE: Moody's Changes Default Rating to 'Ca/LD' BITE FINANCE: Fitch Affirms Rating on EUR110 Mln Notes at 'C' LYONDELLBASELL: Misses Interest Payment on EUR500 Million Bond STICHTING ELEVEN: Moody's Assigns 'Ba3' Rating on Class E Notes UPC HOLDING: Moody's Upgrades Corporate Family Rating to 'Ba3' R U S S I A BORETS INT'L: S&P Assigns 'BB-' Long-Term Corporate Credit Rating BRYANSKIY CONSTRUCTION: Creditors Must File Claims by April 5 EXPERIMENTAL REPAIR: Under External Bankruptcy Procedure FINANCE LEASING: Investors Seek Early Repayment of US$250MM Bonds KAMSKIY CAR-REPAIR: Creditors Must File Claims by May 6 KARACHAEVO CHERKESSK: Creditors Must File Claims by May 6 KONTSERN-M CJSC: Creditors Must File Claims by April 5 LES-META-YUG LLC: Court Names Temporary Insolvency Manager REM-STROY-TREST A 21: Court Names Temporary Insolvency Manager SHATUR-TORF OJSC: Creditors Must File Claims by April 5 SPETS GAZ: Creditors Must File Claims by April 5 UC RUSAL: Onexim Agrees to Convert US$2-Bln Debt Into Shares ULAN-UDENSKAYA ENERGY: Creditors Must File Claims by May 6 S L O V E N I A * SLOVENIA: Commission Approves Liquidity Scheme for Fin'l Sector S P A I N AYT GENOVA: S&P Affirms Low-B Ratings on Five Class D Notes FONCAIXA EMPRESAS: Moody's Assigns 'Ca' Rating on Series D Notes S W I T Z E R L A N D EMS PRECISIONS: Creditors Have Until March 27 to File Claims ERICH SENN: Creditors Must File Proofs of Claim by March 27 FRECODYN LLC: Deadline to File Proofs of Claim Set March 26 H. KUSENBERG OPTIK: Creditors Have Until March 27 to File Claims KULTEC LLC: Claims Filing Period Ends March 26 LANGUAGE TRAINING: Creditors' Proofs of Claim Due by March 27 PFIFFNER MONTAGEN: March 26 Set as Deadline to File Claims PHARMAG R&D: Creditors Must File Proofs of Claim by March 26 VIN-WORLD LLC: Deadline to File Proofs of Claim Set March 26 WEST-OST LLC: Creditors Have Until March 26 to File Claims T U R K E Y GLOBAL YATIRIM: Fitch Lowers Issuer Default Ratings to 'B-' U K R A I N E ATABASKA LLC: Creditors Must File Claims by March 29 ALTERNATIVA LLC: Creditors Must File Claims by March 29 BUSINESS MASTER: Creditors Must File Claims by March 29 RODOVID BANK: Moody's Cuts Bank Financial Strength Rating to 'E' SECONDARY WHOLE: Creditors Must File Claims by March 29 SLOBOZHANSCHINA AGRICULTURAL: Court Starts Bankruptcy Procedure TRADING HOUSE VICTOR: Court Starts Bankruptcy Procedure U N I T E D K I N G D O M A.D. FABRICATIONS: Administrator Puts Assets for Sale BRITTEN INVESTMENTS: Appoints Joint Administrators from PwC BRUNTCLIFFE AGGREGATES, ET AL: Call in Administrators CEVA GROUP: Moody's Downgrades Corporate Family Rating to 'B3' CW8 LTD: Appoints Joint Administrators from BDO Stoy DANKA BUSINESS: Proof of Claim Deadline is April 28 GATEWAY TELECOM: Moody's Withdraws 'B3' Corporate Family Rating GLOBAL XPERIENCE: Goes Into Administration HBOS PLC: S&P Adjusts Ratings on Perpetual Hybrid Instruments HUDSON AND MIDDLETON: Taps Joint Administrators from KPMG LFE MATERIAL: Administrators Put Business for Sale MCCARTHY & STONE: Creditors' Meeting Scheduled on April 17 SPRING LTD. Appoints Joint Administrators from PwC SPRING RESIDENTIAL: Names Joint Administrators from PwC WEAVERING MACRO: Goes Into Liquidation; PwC Appointed WREKIN CONSTRUCTION: Administrators Put Assets for Sale * UK: Business Failures to Increase to 36,000 in 2009, BDO Says * UK: IMF Says Recession to Last Until 2010 * EUROPE: Fitch Downgrades Ratings on 78 Tranches from 38 SF CDOs * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= BACAJ LLC: Claims Registration Period Ends April 8 -------------------------------------------------- Creditors owed money by LLC Bacaj (FN 249122g) have until April 8, 2009, to file written proofs of claim to the court-appointed estate administrator: Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:20 a.m. on April 22, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 17, 2009, (Bankr. Case No. 2 S 19/09w). IMPRESA LLC: Claims Registration Period Ends April 8 ---------------------------------------------------- Creditors owed money by LLC Impresa (FN 111897f) have until April 8, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Erwin Senoner Alser Strasse 21 1080 Vienna Austria Tel: 4060551 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on April 22, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 11, 2009, (Bankr. Case No. 2 S 18/09y). MEWO LLC: Claims Registration Period Ends April 8 ------------------------------------------------- Creditors owed money by LLC Mewo (FN 74987a) have until April 8, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Erwin Bajc Mittergasse 28 8600 Bruck an der Mur Austria Tel: 03842-51462 Fax: 03842-51462-10 E-mail: rechtsanwaelte@bzt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:00 p.m. on April 22, 2009, for the examination of claims at: Land Court of Leoben (609) Hall IV First Floor Leoben Austria Headquartered in Kapfenberg, Austria, the Debtor declared bankruptcy on Feb. 11, 2009, (Bankr. Case No. 18 S 10/09k). MI & MI: Claims Registration Period Ends April 8 ------------------------------------------------ Creditors owed money by LLC Mi & Mi (FN 305930y) have until April 8, 2009, to file written proofs of claim to the court- appointed estate administrator: Clemens Richter Esteplatz 4 1030 Vienna Austria Tel: 712 33 30 Fax: 712 33 3030 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 22, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 13, 2009, (Bankr. Case No. 3 S 18/09f). STILL LLC: Claims Registration Period Ends April 9 -------------------------------------------------- Creditors owed money by LLC Still (FN 257567a) have until April 9, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ilse Korenjak Gusshausstrasse 6 1040 Vienna Austria Tel: 512 21 02 Fax: 512 21 02 20 E-mail: office@buresch-korenjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 23, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 17, 2009, (Bankr. Case No. 5 S 23/09f). ============= B E L G I U M ============= FORTIS BANK: Fitch Junks Rating on EUR3BB Equity-Linked Securities ------------------------------------------------------------------ Fitch Ratings has downgraded Fortis Bank's EUR3 billion convertible and subordinated hybrid equity-linked securities to 'CCC' from 'BB-' (BB minus). Fitch has also downgraded Fortfinlux S.A.'s EUR1.25 billion floating rate equity-linked subordinated hybrid capital securities to 'CCC' from 'B'. The Rating Watch on CASHES has been revised to Evolving from Positive, while the FRESH capital securities remain on RWE. Fortis NA/NV and Fortis N.V. are co-obligors of the FRESH capital securities. The rating actions reflect the heightened risk that the coupons on these instruments could be deferred, as they are linked to the payment of dividends on the shares of the Fortis holding companies. Given that no dividend will be paid on the shares of the Fortis holding companies, the coupons on these instruments must be paid using the alternative coupon satisfaction method, according to the terms of their offering circulars. This means that the Fortis holding companies must issue new shares. However, as the shares are trading below their nominal amount, shareholders may not approve the new share issue, which means that the coupons payments would be deferred. Fortis Bank -- CASHES ISIN BE0933899800 downgraded to 'CCC' from 'BB-', Rating Watch revised to evolving from positive Fortifinlux SA -- FRESH Capital Securities ISIN XS0147484074 and XS0147484314 downgraded to 'CCC' from 'B', remain on RWE * BELGIUM: EC Okays Temporary Aid Scheme to Companies in Flanders ----------------------------------------------------------------- The European Commission has authorized under EC Treaty rules on state aid a Belgian scheme aimed at providing relief to companies in Flanders encountering financing difficulties as a result of the credit squeeze in the current economic crisis. The scheme, put in place by the Flemish Ministry of Economic Affairs, provides aid in the form of subsidized guarantees for investment and working capital loans concluded by December 31, 2010. The scheme meets the conditions of the Commission's Temporary Framework for state aid measures to support access to finance in the current financial and economic crisis, as amended on February 25, 2009, because it is appropriate to remedy a serious disturbance in the entire Belgian economy, is limited in time, respects the relevant thresholds and applies only to companies that were not in difficulty on July 1, 2008. It is therefore compatible with Article 87(3)(b) of the EC. Competition Commissioner Neelie Kroes said "I am satisfied that this measure facilitates the access of firms affected by the credit crunch to investment and working capital loans, and represents an effective way of encouraging business investment and economic recovery, without unduly distorting competition." The Flemish authorities designed the scheme on the basis of the rules laid down in the Commission's Temporary Framework on state aid to the real economy during the crisis and accepted in particular the conditions for aid in the form of subsidized guarantees. The reduction of the guarantee fee can be applied during a period of up to 2 years for loan guarantees contracted no later than December 31, 2010. Where the duration of the underlying loan exceeds 2 years, the safe-harbor premiums set out in the Annex to the Temporary framework, as amended, may be applied for the remaining period of the guarantee. The maximum duration of guarantees granted under the scheme is limited to five years. The scheme does not apply to firms that were already in difficulty on July 1, 2008 (i.e. before the credit crunch). In view of the importance of Flanders for the overall Belgian economy, the Commission considers that the scheme can be approved under Article 87 (3)(b) of the EC Treaty even though it is proposed at regional level. Flanders represents more than 55% of the Belgian GDP, and more than 80% of Belgian exports, and the Belgian authorities demonstrated that the scheme is necessary, proportional and appropriate to remedy a serious disturbance in the entire Belgian economy. =============== B U L G A R I A =============== EUROBANK EFG: Fitch Downgrades Individual Rating to 'D' ------------------------------------------------------- Fitch Ratings has downgraded Eurobank EFG Bulgaria AD's Individual rating to 'D' from 'C/D'. At the same time, the agency has affirmed EFGB's ratings at Long-term Issuer Default 'BBB+' with a Negative Outlook, Short-term IDR 'F2' and Support '2'. The rating action reflects Fitch's opinion of the bank standalone strength in a deteriorating operating environment. The agency expects asset quality to deteriorate significantly in coming quarters, putting pressure on EFGB's profitability and potentially on capitalization, if significant credit losses were to materialize. EFGB's Individual rating continues to reflect the benefits the bank derives from being part of the EFG Eurobank Ergasias ('A-' (A minus)/Negative) group and its strong national franchise. Credit risk has been increasing rapidly in recent years as the bank expanded its retail and SME exposure amid strong domestic credit growth. Impaired loans are higher than at its immediate peers, and impairment allowances only acceptable. In addition, some economic sectors to which the bank is exposed (such as real estate and construction) might see their performance weaken in the near future. Capitalization has weakened at the bank on the back of strong lending growth and is regarded as only reasonable. EFGB's IDRs and Support rating reflect the support it can expect to receive from its 99.7% shareholder Eurobank, in case of need, and its close integration within its parent bank. The Negative Outlook reflects that on Eurobank's Long-term IDR. =========== C Y P R U S =========== RESERVE INVEST: Moody's Confirms 'B3' LT Foreign Currency Rating ---------------------------------------------------------------- Moody's Investors Service has confirmed the B3 long-term foreign currency issuer rating of Reserve Invest Cyprus. The outlook on the rating is negative. According to Moody's, the confirmation of RIC's long-term foreign currency issuer rating is a result of an improved risk position resulting from additional liquidity support as well as a significant decrease in the company's leverage. "At the same time, the rating agency expects that the deteriorating operating environment will continue to exert negative pressure on the company's financial fundamentals (e.g. franchise, profitability, capital, liquidity) as well as on the shareholder's ability to provide necessary assistance in case of need. This is reflected in the negative outlook on its rating," Vladlen Kuznetsov, a Moscow-based Assistant Vice President- Analyst, and lead analyst for RIC, said. RIC's largest asset is a sizeable stake in LUKoil ADRs, which the firm funds in the repo market, primarily with Western counterparties. As a result of the significant dislocation in the markets in September-October 2008, compounded by the high volatility in LUKoil shares, RIC has incurred significant losses from revaluation of the shares. These losses were compensated by injections from the affiliated group companies which, together with the additional LUKoil shares provided by the shareholder, enabled the company to meet margin calls and other imminent liquidity needs as well as support capital at the past levels. Since then, the company has significantly decreased its leverage from 1x at end-H1-2008 to 0.4x at year-end 2008 and intends to continue to de-leverage the balance sheet in response to market instability. Moody's has assessed that the probability of significant further market downturn to the extent it requires additional support from the shareholders is notable although not sufficient to take necessary rating actions. In respect of shareholder support, however, Moody's recognize that such has been provided in the past but have not incorporated further support in RIC's ratings because it cannot be assessed with a good degree of confidence due to the lack of insight in the overall financial strength of the shareholders (not rated). Moody's will continue to monitor the development of the market conditions and assess how the company and its shareholders addresses these conditions. The previous rating action was on October 16, 2008, when Moody's downgraded RIC's B1 long-term foreign currency issuer rating to B3 and placed it on review for a possible further downgrade. The ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as the analysis of the behaviour of the market value of the collateral, largely in LUKoil ADRs and market risk of other liquid securities which the company has in its portfolio. In addition franchise value, expected leverage and liquidity as well as performance were also taken into account. These attributes were compared against those of other companies and RIC's ratings are believed to be comparable to ratings assigned to other funds of similar risk. RIC is a Cyprus-based financial company with total assets at end- September 2008 of US$1.3 billion and equity of US$900 million. The company reported losses of ca. US$427 million in 2008. ============= D E N M A R K ============= AMALIE I: Moody's Cuts Rating on Tranche C Notes to 'Ba2' --------------------------------------------------------- Moody's Investors Service has downgraded and left on review for further possible downgrade its ratings of three classes of notes issued by Amalie I Limited. The transaction is a static CLO backed by 17 subordinated loans advanced to Danish commercial and savings banks. The rating actions are the result of (i) credit deterioration in the underlying portfolio, which includes but is not limited to exposure to Fionia Bank whose subordinated debt rating has been downgraded to C following the decision not to transfer subordinated liabilities to the new bank under the government scheme and (ii) the application of revised and updated key modelling parameter assumptions that Moody's uses to rate and monitor ratings of collateralized loan obligations. Moody's announced that changes to these assumptions in a press release published on February 4, 2009. The revisions affect default probability and correlation, which are key parameters underlying this rating. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Report below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) The rating actions are: Amalie I Limited: (1) EUR94,000,000 Tranche A Floating Rate Secured Senior Notes due 2015 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 28 March 2007, assigned Aaa (2) EUR38,000,000 Tranche B Floating Rate Secured Mezzanine Notes due 2015 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 28 March 2007, assigned Aa2 (3) EUR33,000,000 Tranche C Floating Rate Secured Junior Notes due 2015 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 28 March 2007, assigned A2 KALVEBOD PLC: Moody's Lowers Rating on Class B Notes to 'B3' ------------------------------------------------------------ Moody's Investors Service has downgraded and left on review for further possible downgrade its ratings of two classes of notes issued by Kalvebod plc under the Series 4. The transaction is a static CLO backed by 16 subordinated loans advanced to Danish commercial and savings banks. The rating actions are the result of (i) credit deterioration in the underlying portfolio, which includes but is not limited to exposure to Roskilde Bank whose subordinated debt is expected to experience a substantial loss following the decision not to transfer subordinated liabilities to the new bank under the government scheme and (ii) the application of revised and updated key modelling parameter assumptions that Moody's uses to rate and monitor ratings of collateralized loan obligations (CLOs). Moody's announced that changes to these assumptions in a press release published on ebruary 4, 2009. The revisions affect default probability and correlation, which are key parameters underlying this rating. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Report below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) The rating actions are: Kalvebod plc: (1) Series 4 EUR82,875,680 Class A Floating Rate Secured Senior Notes due 2015 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 10 September 2008, Aaa placed under review for possible downgrade (2) Series 4 DKK463,165,120 Class B Fixed/Floating Rate Secured Mezzanine Notes due 2015 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 10 September 2008, Baa2 placed under review for possible downgrade ============= G E R M A N Y ============= DACHDECKEREI MULDENDACH: Claims Registration Period Ends April 8 --------------------------------------------------------------- Creditors of Dachdeckerei Muldendach GmbH have until April 8, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on April 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 Leipzig Hall 145 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Thiemann Schorlemmerstrasse 2 04155 Leipzig Germany Tel: 0341/4903650 Fax: 0341/4903699 E-mail: leipzig@pluta.net The court opened bankruptcy proceedings against the company on March 20, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Dachdeckerei Muldendach GmbH Anne-Frank-Weg 6 04808 Wurzen Germany Attn: Alexander Barton, Querstr. 10 04808 Wurzen Germany DER REISELADEN: Claims Registration Period Ends May 4 ----------------------------------------------------- Creditors of Der Reiseladen GmbH have until May 4, 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 25, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg 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: Karl-Joachim Meyer Schiessgrabenstr. 8/9 21335 Lueneburg Germany Tel: 20100 Fax: 20 10 14 The court opened bankruptcy proceedings against the company on March 19, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Der Reiseladen GmbH Attn: Birger Koeppen, Manager Salzstrasse 1 21335 Lueneburg Germany GENERAL MOTORS: Germany Won't Buy Stake in Opel, Ms. Merkel Says ---------------------------------------------------------------- Reuters reports Chancellor Angela Merkel said the German government is not aiming to take a stake in Adam Opel GmbH but may give the troubled General Motors Corp. subsidiary aid to help it survive. According to Reuters, Ms. Merkel said she saw a chance for Opel's survival to be secured with state help but rejected the idea of the state taking a direct stake in in the unit. Reuters relates Ms. Merkel added that a future business plan for Opel could not be formulated properly until GM's future was clear. Opel risks bankruptcy or even closure because of the immense problems faced by General Motors, The International Herald Tribune's Judy Dempsey says. AFP recalls Opel said it needs EUR3.3 billion (US$4.5 billion) to avoid bankruptcy under a plan presented in late February. Ms. Merkel is due to visit workers and managers at Opel's main factory in Ruesselsheim, on March 31, The Wall Street Journal says. Separation of Opel On Mar. 18, 2009, The Troubled Company Reporter, citing The Wall Street Journal, reported 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 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, Ms. 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. Jeff Green at Bloomberg related 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 reported. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. GM's common stock was considered the stock market's bellwether for many years, hence the saying "What's good for GM is good for America." * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. To 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the Company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. And General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GERD MOENNICH: Claims Registration Period Ends May 22 ----------------------------------------------------- Creditors of Gerd Moennich GmbH have until May 22, 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 June 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wilhelmshaven Hall 109 Old Building Market Route 15 26382 Wilhelmshaven 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: Hubert Griesoph Alte Wiefelsteder St. 3 26316 Varel Germany Tel: 04451-913880 Fax: 04451-913839 E-mail: buero@hsm-stb.de The court opened bankruptcy proceedings against the company on March 18, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Gerd Moennich GmbH An der Junkerei 21 26389 Wilhelmshaven Germany Attn: Karsten Post, Manager Dahlienweg 17 26419 Schortens-Grafschaft Germany GFS TRANSPORT: Claims Registration Period Ends May 5 ---------------------------------------------------- Creditors of GFS Transport GmbH have until May 5, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 17, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Chemnitz Insolvency Tribunal Hall 2.011 Fuerstenstr. 21-23 09130 Chemnitz Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Sylvia Wille Nansenstr. 7 09116 Chemnitz Germany Tel: 0371/400440 Fax: 0371/4004410 E-mail: Info@wir-chemnitz.de The court opened bankruptcy proceedings against the company on March 20, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: GFS Transport GmbH Attn: Rene Guenther and Bernd Schmid, Managers Auf den Guetern 36 08294 Loessnitz Germany HIP INSTITUT: Claims Registration Period Ends May 8 --------------------------------------------------- Creditors of HIP Institut fuer Prueftechnik and Entwicklung GmbH have until May 8, 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 June 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bonn Hall S 2.18 William-Strasse 23 53111 Bonn 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: Siegfried Mueller Zum Markt 10 53894 Mechernich Germany Tel: 02443 / 98120 Fax: 0244398 12 19 The court opened bankruptcy proceedings against the company on March 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: HIP Institut fuer Prueftechnik and Entwicklung GmbH Birkenmaarstr. 1 53340 Meckenheim Germany Attn: Helmut Herrmann, Manager Hitdorferstr. 217 51371 Leverkusen Germany HYPO REAL ESTATE HOLDING: Lower House OKs Nationalization of Bank ----------------------------------------------------------------- Germany's lower house of parliament has backed a bill allowing nationationalization of Hypo Real Estate Holding AG ("HRE") for a specified time period, but only as a last resort, Andrea Thomas at The Wall Street Journal reports. International broadcaster Deutsche Welle relates the government stressed HRE would only be nationalized for a limited period of time if all other attempts by the state to take control have been exhausted. The legislation stipulates that the government must first try alternatives to expropriation such as seeking agreement from shareholders to part with stock or their participation in a capital injection, Deutsche Welle says. According to WSJ, the bill, designed to help the government gain control over HRE, was backed by 379 of the 532 votes cast, while 107 voted against it and 46 abstained. A vote in the upper house is planned for April 3, WSJ says. "In order to get legal certainty and the speed that we need to act, it is necessary to get quickly a 100% state-controlling majority in HRE, because we must prevent the collapse of a systemically relevant bank and any resulting knock-on effect," WSJ quoted Deputy Finance Minister Nicolette Kressl as saying. The German government, WSJ relates, aims to take control of HRE in April and the motion for a forced nationalization of the bank has to be submitted by June 30 and the move has to be enforced by Oct. 31. The bill was approved by Chancellor Angela Merkel on Feb. 18. On March 20, 2009, the Troubled Company Reporter-Europe, citing The Financial Times, reported HRE's largest shareholder, U.S.- based investment firm J.C. Flowers & Co., opposes the expropriation and wants the government instead to take a stake of 75 per cent in the lender via a capital raising. J.C. Flowers holds a 24 percent stake in HRE, which it bought last year in a EUR1.1 billion deal. "JC Flowers is disappointed that the government continues on the path to expropriation and nationalization given that we have provided a clear alternative that secures the future of HRE and better protects the German taxpayer and the rights of all shareholders," the FT quoted the private equity group as saying after lawmakers in parliament's finance committee approved the draft law. The private equity firm however remains "committed to a constructive dialogue," a German spokesman for Flowers told Dow Jones Newswires. HRE already received EUR102 billion in bank and state loans and state guarantees. According to Bloomberg News, HRE was forced to seek a bailout after Depfa Bank Plc, its Dublin-based unit, failed to get short-term funding in September when credit markets seized up. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. * * * As reported in the Troubled Company Reporter-Europe on Dec. 2, 2008, Dominion Bond Rating Service downgraded its long-term ratings for Hypo Real Estate Holding AG (Holding) and related entities (together Hypo Real Estate or the Group), including the Senior Unsecured Long-Term Debt rating for Holding, which was downgraded to A (low) from "A". Concurrently, all ratings have been placed Under Review with Negative Implications. DBRS's rating action followed the announcement of Hypo Real Estate's Q3 2008 results, the announcement of an additional EUR20 billion short-term debt guarantee and of additional information about the Group's liquidity challenges, earnings outlook and pending application for more comprehensive external support. The downgrade and the Under Review Negative status reflect DBRS's concern that Hypo Real Estate's franchise has been weakened by its ongoing liquidity challenges. The Group's lack of access to market funding currently restricts its ability to write new business and requires it to seek more comprehensive support, demonstrating the weakening of its intrinsic fundamentals, the rating agency said. A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group incurred a consolidated pre-tax loss of EUR3.105 billion for the third quarter of 2008 compared with a pre-tax profit of EUR237 million in the corresponding previous year period. The quarterly loss is mainly attributable to the writeoff of goodwill and other intangible assets attributable to the initial consolidation of DEPFA Bank Plc (EUR2.482 billion). On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's Ratings Services lowered its long-term counterparty credit ratings on the seven rated entities of Hypo Real Estate (HRE) group to 'BBB' from 'BBB+', namely, Germany-based commercial real estate lenders Hypo Real Estate Bank International AG and Hypo Real Estate Bank AG, public-finance lenders Depfa Deutsche Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank Bank International S.A. "These rating actions reflect the group's strained financial profile, weak funding position, and concerns about the viability of its business model," said Standard & Poor's credit analyst Volker von Kruechten. "We expect HRE to restructure and downsize, which may cause further pressure on earnings and capital, owing to the difficult market environment and a deteriorating credit cycle." KIC KUECHENMARKT: Claims Registration Period Ends May 4 ------------------------------------------------------- Creditors of KIC Kuechenmarkt GmbH have until May 4, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 2, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich 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. Christian Gerloff Nymphenburger St. 139 80636 Munich Germany Tel: 089/120260 Fax: 089/12026127 The court opened bankruptcy proceedings against the company on March 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: KIC Kuechenmarkt GmbH Attn: Wolfgang Gehrig, Manager Lotte-Branz-Str. 14 80939 Munich Germany TRONOX INC: German Units File for Insolvency -------------------------------------------- PlastEurope reports that Tronox Inc.'s German units have filed for insolvency, putting 550 jobs at risk. According to PlastEurope, Tronox's 107,000 t/y production facility at Krefeld, which has been for sale for some time, is believed to be operating at no more than half nameplate capacity. About Tronox Inc. The company is the world's third largest maker of titanium dioxide behind DuPont Co. and Saudi-owned National Titanium Dioxide Co., known a Cristal, according to Bloomberg. Tronox has US$1.6 billion in total assets, including $646.9 million in current assets, as at September 30, 2008. The company has US$881.6 million in current debts and US$355.9 million in total noncurrent debts. Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates filed for Chapter 11 protection on January 13, 2009 (Bankr. S.D. N.Y. Case No. 09-10156). The case is before Hon. Allan L. Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York, represent the Debtors. The Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel; Rothschild Inc. as investment bankers; Alvarez & Marsal North America LLC, as restructuring consultants; and Kurtzman Carson Consultants serves as notice and claims agent. Until September 30, 2008, Tronox Inc. was publicly traded on the New York Stock Exchange under the symbols TRX and TRX.B. Since then, Tronox Inc. has traded on the Over the Counter Bulletin Board under the symbols TROX.A.PK and TROX.B.PK. As of December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares of class A common stock and 22,889,431 outstanding shares of class B common stock. Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tronox Inc. and its 14 affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) =========== G R E E C E =========== EMPORIKI BANK: Moody's Cuts Financial Strength Rating to 'D+' ---------------------------------- -------------------------- Moody's Investors Service has downgraded the long-term deposit and senior debt ratings of Emporiki Bank of Greece SA to A1 from Aa3, the Baseline Credit Assessment to Baa3 from Baa2 and the bank financial strength rating to D+ from C-. The bank's subordinated debt rating was also downgraded to A2 from A1. The bank's Prime-1 short term deposit rating was affirmed. The outlook on the long- term deposit and debt ratings and on the BCA is negative, while the outlook on the BFSR is stable. This rating action concludes the review initiated on February 5, 2009. Moody's rating action reflects the ongoing weakening financial performance of Emporiki Bank, the anticipated equity capital increase to EUR850 million and the challenges faced by the bank in turning around its financial performance at a time of deteriorating economic conditions in its primary market, Greece. Moody's notes that Emporiki Bank's D+ BFSR is based on its good domestic franchise and its weak financial fundamentals. Furthermore, the BFSR takes into account the ongoing strengthening of the bank's overall franchise as a result of the continuing operational and financial support by its parent, France's Credit Agricole SA (CASA, rated Aa1/B-). "Emporiki Bank's A1 long-term deposit rating is based on its BFSR of D+, which translates into a Baseline Credit Assessment of Baa3, and on Moody's assessment of a very high probability of parental and systemic support in the event of need. Parental support is derived from CASA, as Emporiki Bank's 73% majority and controlling shareholder," Melina Skouridou, a Limassol-based Moody's Associate Analyst, said. The bank suffered a loss for 2008 because of higher credit costs combined with weakeing earning power due to a narrowing of its net interest margin. The rating agency said that Emporiki Bank's ongoing restructuring efforts to better position itself in a highly competitive market and to arrest the weakening trends in its financial performance are hampered by the deteriorating economic and operating conditions in Greece. In Moody's view, such conditions are unlikely to offer opportunities for business expansion without unduly compromising the bank's risk profile, while the reduced economic activity will, most likely, further burden the bank's already weak credit quality. The issuers and ratings affected by this action are: Emporiki Bank of Greece SA: -- BFSR downgraded to D+, stable outlook, from C- -- BCA downgraded to Baa3, negative outlook, from Baa2 -- Long-term deposit and senior debt ratings downgraded to A1, negative outlook, from Aa3 -- Subordinated debt rating downgraded to A2, negative outlook, from A1 Emporiki Finance Group: -- Senior debt rating downgraded to A1, negative outlook, from Aa3 -- Subordinated debt rating downgraded to A2, negative outlook, from A1 Moody's previous rating action on Emporiki Bank of Greece was on February 5, 2009, when it placed its BFSR of C-, its Aa3 rating for long-term deposits and senior debt, as well as its A1 rating for subordinated obligations under review for possible downgrade. Headquartered in Athens, Greece, Emporiki Bank of Greece S.A. had consolidated total assets of EUR30.03 billion at end-December 2008. ============= I C E L A N D ============= KAUPTHING BANK: Luxembourg Unit Buys Stanford's Stake in Mulberry ----------------------------------------------------------------- Kaupthing Bank Luxembourg, a unit ofIceland's Kaupthing Bank hf., has acquired Kevin Standford's 25.4% stake in Mulberry Group plc for an undisclosed sum, Trading Markets reports citing the Independent. In a March 20 release Mulberry said Kevin Stanford disposed 14,585,720 ordinary shares of 5 pence each in the company. According to the report, Mr. Stanford reportedly owes the Icelandic bank some GBP250 million (US$361 million) (EUR264 million). About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. * * * As reported in the Troubled Company Reporter on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. Citing a court filing by Olafur Gardarsson, Reuters disclosed Kaupthing has about US$14.8 billion of principal assets, including US$222 million located in the United States, and US$26 billion of principal indebtedness. REYKJAVIK SAVINGS: FME Takes Over Operations -------------------------------------------- Reuters reports that the Icelandic Financial Services Authority has taken over the country's top two savings banks, Reykjavik Savings Bank (SPRON) and Sparisjodabanki, formerly Icebank. Reuters relates the Icelandic government said discussions with creditors of both savings banks had been unsuccessful and that their liquidity positions had continued to deteriorate, prompting the FME's decision. SPRON had total assets of ISK267 billion Icelandic crowns (about US$880 million) at the end of September 2008, including ISK212 billion of loans listed as assets, Reuters discloses. Sparisjodabankinn, Reuters states, had assets worth ISK289 billion, with ISK105 billion in loans and advances listed as assets at the end of June last year. Iceland's Ministry of Business Affairs in a March 21 statement said SPRON customers will automatically have access to their deposits and banking services through New Kaupthing, while the Central Bank will take over the Sparisjodabanki's payment intermediation. Reuters notes the Ministry of Business Affairs also said 11 other savings banks would also receive liquidity support, including BYR, Sparisjodur Bolungarvikur, Sparisjodur Hofdhverfinga, Sparisjodur Keflavikur, Sparisjodur Myrasyslu, Sparisjodur Nordfjardar, Sparisjodur Sudur-Thingeyinga, Sparisjodur Strandamanna, Sparisjodur Svarfdaela, Sparisjodur Vestmannaeyja and Sparisjodur Thorshafnar. SPARISJODABANKI: FME Takes Over Operations ------------------------------------------ Reuters reports that the Icelandic Financial Services Authority has taken over the country's top two savings banks, Reykjavik Savings Bank (SPRON) and Sparisjodabanki, formerly Icebank. Reuters relates the Icelandic government said discussions with creditors of both savings banks had been unsuccessful and that their liquidity positions had continued to deteriorate, prompting the decision. SPRON had total assets of ISK267 billion Icelandic crowns (about US$880 million) at the end of September 2008, including ISK212 billion of loans listed as assets, Reuters discloses. Sparisjodabankinn, Reuters states, had assets worth ISK289 billion, with ISK105 billion in loans and advances listed as assets at the end of June last year. Iceland's Ministry of Business Affairs in a March 21 statement said SPRON customers will automatically have access to their deposits and banking services through New Kaupthing, while the Central Bank will take over the Sparisjodabanki's payment intermediation. Reuters notes the Ministry of Business Affairs also said 11 other savings banks would also receive liquidity support, including BYR, Sparisjodur Bolungarvikur, Sparisjodur Hofdhverfinga, Sparisjodur Keflavikur, Sparisjodur Myrasyslu, Sparisjodur Nordfjardar, Sparisjodur Sudur-Thingeyinga, Sparisjodur Strandamanna, Sparisjodur Svarfdaela, Sparisjodur Vestmannaeyja and Sparisjodur Thorshafnar. * ICELAND: Launches Probe Into Five Pension Funds ------------------------------------------------- Iceland Review reports that special prosecutor Olafur Thor Hauksson launched Tuesday last week an investigation into investments made by five Icelandic pension funds worth ISK25 billion (US$216 million, EUR166 million) in total. Citing Frettabladid, the report discloses the pension funds, including Islenski lifeyrissjodurinn, Lifeyrissjodur Eimskipafelags Islands, Lifeyrissjodur Tannlaeknafelag Islands, Eftirlaunasjodur islenskra atvinnuflugmanna and Kjolur lifeyrissjodur, were all managed by the same person at Landsbanki. The report recalls the individual stopped working on March 13. The report relates according to Morgunbladid, there is a suspicion that the funds' investments in certain companies, including Landsbanki where the money was under asset management, had exceeded the maximum legal amount. "There is also a suspicion that the reports that they submitted to the FME were incorrect, so that is possibly a violation of the penal code," the report quoted Mr. Hauksson as saying. "Then there is a question of whether people were acting beyond their sphere authority." Landsbanki, however, denied that it has anything to do with the investigation, the report notes. ============= I R E L A N D ============= QUALCERAM SHIRES: May Opt for Examinership or Receivership ---------------------------------------------------------- Ailish O'Hora at Independent.ie reports that Qualceram Shires plc is considering going into examinership or receivership as talks with landlords and banks over sale and lease back agreements continued to prove challenging. According to the report, Qualceram wants to sell surplus properties but this would result in a breach of its agreements with its landlord, which will, in turn, give WP Carey the right to call in letters of credit worth EUR2.6 million. Qualceram, the report states, is in talks with the landlord to waive the covenants and letters of credit. The negotiations also include HBOS, the report notes. The company, the report discloses, has also delayed the issuing of its preliminary results and it is not yet known when they will be released. The report recalls shares in Qualceram slumped a further 12.5pc on Friday, March 20, having dropped to 12c from 75c on Thursday, March 19. The report relates in a March 20 statement the company said it continues to be adversely affected by the unprecedented slowdown in the property market. Headquartered in Arklow, Ireland, Qualceram Shires plc -- http://www.qualceram-shires.com/-- is engaged in the manufacture, sale and distribution of bathroom products. The company's brands include Shires, Selecta, Shaws and Trent. ========= I T A L Y ========= CARLO TASSARA: Owner Seeks Debt Moratorium Extension ---------------------------------------------------- Armorel Kenna at Bloomberg News reports according to daily Il Sole 24 Ore, financier Romain Zaleski has asked his creditor banks for a two-year extension on a debt moratorium for his Carlo Tassara SpA holding company. The moratorium expires at the end of this year, Il Sole said as cited by Bloomberg News. Carlo Tassara has debts of EUR3.4 billion (US$4.6 billion), according to the report. Based in Breno, Italy, Carlo Tassara SpA operates in the sectors of heavy industry, steel industry, ironworks, metallurgy, and production of electric power. TISCALI SPA: Founder Returns as Firm Grapples With Debt ------------------------------------------------------- Reuters reports Tiscali SpA said its founder, Renato Soru, returned to the company's board Thursday last week. According to Reuters, Mr. Soru, who holds 20.1 percent in the company, resigned as chairman and chief executive in 2004 to enter politics. He however was recently defeated in a bid to be elected as governor of Sardinia, Dow Jones says. Mr. Soru's return, Reuters states, is seen as a possible guarantee that Tiscali can reach an agreement with banks over its EUR500 million (US$674.6 million) in debt. In an an earlier report, Dow Jones said Tiscali has started a process aimed at renegotiating its financial debt with key lenders, which have shown support for the company's approach. The company also confirmed it has suspended payments on its long-term debt, including those due in March, Dow Jones said. According to Dow Jones, Tiscali's talks to sell its U.K. assets to British Sky Broadcasting Group PLC failed, and it has asked banks to suspend interest payments on its debt. Among Tiscali's key lenders are Intesa Sanpaolo and JP Morgan Chase, Dow Jones said. Cagliari, Italy-based Tiscali S.p.A. (BIT:TIS) --- http://www.tiscali.com/--- is an Internet communications company providing broadband and narrowband access for consumer and business applications, as well as communications services and content. The Company's portfolio includes Internet access in the form of dial-up, broadband, satellite and leased lines, and hosting services, such as co-location, shared hosting and managed hosting. Tiscali also offers streaming media, telephony and such services as virtual private networks (VPN), allowing companies to communicate with remote branches. Its consumer products and services include Internet access, voice, media, Internet Protocol Television (IPTV) and value-added services, such as e-mail, Net calendar, Net fax, Net phone, mail, instant messaging and Web hosting. It is operational in Europe through its subsidiaries and joint ventures. As of June 30, 2008, Tiscali had approximately 3.2 million active users in Italy and the United Kingdom. =================== K A Z A K H S T A N =================== ALLIANCE BANK: S&P Puts 'B/B' Rating on Negative CreditWatch ------------------------------------------------------------ Standard & Poor's Ratings Services said that it placed its 'B/B' counterparty credit rating on Kazakhstan-based Alliance Bank JSC on CreditWatch with negative implications. The rating had been on CreditWatch with developing implications since Feb. 3, 2009, after Samruk Kazyna announced its proposed acquisition of majority stakes in the bank. "The rating action reflects our view of the reduced likelihood of government support and the increasing possibility of a restructuring of the bank's debt obligations. S&P understand that the government is not willing to guarantee Alliance's foreign debt," said Standard & Poor's credit analyst Annette Ess, CFA. S&P classifies Kazakhstan as an "interventionist" country regarding its support of systemically important banks such as Alliance. Although Samruk Kazyna's majority takeover of Alliance has still not been completed and is likely to take some time, S&P currently factor in one notch of government support for Alliance's systemic importance. The rating action also reflects S&P's view of the continuing downward pressure on the bank's stand-alone credit profile due, among other things, to significant asset-quality deterioration, which is depleting its capitalization. Also contributing to the rating action are what S&P see as continuing funding and liquidity challenges and the instability of deposits. S&P believes that Alliance is also affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. S&P expects to resolve the CreditWatch after obtaining information on the probability of Alliance's debt restructuring, finalization of the acquisition by Samruk Kazyna or Samruk Kazyna's decision not to acquire the bank, and further clarification of the implications of government ownership for Alliance's creditworthiness, strategy, and financial flexibility. If debt restructuring is imminent S&P would change the ratings to 'D'. Barring any further deterioration in its operating environment, S&P may affirm the current ratings if Alliance decides not to restructure its debt and to meet all its obligations in a timely manner; if S&P considers that extraordinary state support is more likely; or if the government's enhancement measures sustainably strengthen Alliance's stand-alone credit profile. AS-TECK-2 LLP: Creditors Must File Claims by April 24 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP As-Teck-2 insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: Gogol Str. 177a Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan BIDAI SAUDA: Creditors Must File Claims by April 24 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Kokshetau Bidai Sauda insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Gorky Str. 37 Kokshetau Akmola Kazakhstan BTA BANK: S&P Downgrades Counterparty Credit Ratings to 'CCC+/C' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its counterparty credit ratings on two banks and one mortgage company in the Republic of Kazakhstan (FC: BBB-/Negative/A-3; LC: BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co., to 'CCC+/C' from 'B+/B'. The counterparty credit ratings on these entities were put on CreditWatch with negative implications. They had been on CreditWatch with developing implications since Feb. 3, 2009, after the government announced its proposed acquisition of majority stakes in these banks. "The rating action reflects our view of the increased probability of debt restructuring by BTA and its subsidiaries, and the reduced likelihood of support by the Kazakh government for BTA to meet its debt obligations according to their terms. S&P understand that the Kazakh government is not willing to guarantee these entities' debt obligations, which in our view increases the likelihood of a debt restructuring," said Standard & Poor's credit analyst Annette Ess, CFA. S&P classifies Kazakhstan as an "interventionist" country regarding its support of systemically important banks such as BTA. Despite the finalization of BTA's nationalization in February 2009, S&P's long-term rating on BTA no longer includes any additional notches above its stand-alone credit profile due to the lower probability of government support. S&P lowered its long- term ratings on BTAI and Temir Bank, and these are constrained by S&P's ratings on BTA. The rating actions also reflect S&P's view of the continuing downward pressure on these entities' stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. S&P expects to resolve the CreditWatch placements of BTA, Temirbank, and BTAI once S&P obtain information about an eventual debt restructuring and further clarification on the implications of the Kazakh government's ownership for these entities' creditworthiness, strategies, and financial flexibility. If debt restructuring is imminent S&P would change the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these institutions if either future government support or improvements in their own stand-alone credit profiles helps them to avoid a debt restructuring and allows them to meet all their obligations in a timely manner. BTA BANK: S&P Cuts Ratings on Four Transactions to 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its stand-alone and/or underlying ratings on four BTA Bank JSC's BTA DPR Finance Co. (JSC Bank TuranAlem) and seven Kazkommertsbank JSC's Kazkommerts DPR Co. financial future flow transactions. All 11 transactions are backed by Kazakhstan's diversified payment rights. At the same time, the KKB transactions were placed on CreditWatch with negative implications and the BTA transactions remain on CreditWatch negative, where they were placed on Feb. 5, 2009. The rating actions are based on a recent review of both programs, following the recent March debt-service payment date. The quarterly reporting period, beginning in December 2008 and ending in March 2009, depicted a drop in the debt-service coverage ratio levels in both the BTA and KKB DPR programs. BTA's flow volumes have declined approximately 57.5% from the trailing 12-month quarterly average, while KKB's flows have declined nearly 29.2% over the same period. The rapid declines have been caused by the global economic downturn negatively impacting Kazakh-based exports (mineral or petroleum based) from a demand and price perspective. Given the very high industry and customer concentrations of the Kazakh DPR programs, these have resulted in a steep reduction in DPR flows and DSCR coverage ratios. BTA's DPR program traditionally exhibits one of the highest concentrated global DPR programs from an industry and customer perspective. As a result, BTA's DPR program has been and continues to be stressed at a higher level consistent with the increased concentration risks. BTA's DPR program currently has US$750 million outstanding and KKB's DPR program currently has US$934.38 million outstanding. Both programs' current DSCR meet S&P's requirements for a 'BB-' rating. KKB's DPR program rating is at the same level of Kazkommertsbank's long-term foreign and local currency rating of 'BB-'. BTA's DPR program rating is rated one notch above BTA Bank's long-term foreign and local currency rating of 'B+'. S&P will continue to surveil the issue ratings on these future flow securitizations, and S&P will revise them as necessary to reflect any future changes in the transactions' underlying credit quality. Both programs incorporated certain structural triggers that if breached, could cause either an early amortization or stepped-up amortization event if certain requirements are met. Another rating agency's bank rating requirements were breached when the agency lowered both banks' ratings recently. This, in addition to a decline in flows and capital adequacy ratio test breach, will, under the transaction's documentation, cause the BTA program to begin amortization of principal with the scheduled June debt- service payment. KKB's program has breached a ratings event, which under the transaction documentation will cause all series to amortize principal at a stepped-up level with the scheduled June debt-service payment. The early amortization events are not immediate since both banks have begun to fund a reserve account as a temporary (four-month period) action to cure the breached triggers. If certain requirements are not met under the transaction documents, a possible early amortization may begin in August for BTA, and a further stepped-up amortization for KKB in September. Standard & Poor's is in communication with the trustee for both programs, the Bank of New York Mellon, as well as with BTA and KKB. The BTA series 2007-A, 2007-B, and 2007-C notes benefit from an insurance policy provided by Financial Guaranty Insurance Co. (FGIC; 'CCC' insurer financial enhancement rating), MBIA Insurance Corp. (MBIA; 'BBB+' insurer financial enhancement rating), and Ambac Assurance Corp. (Ambac; 'A' insurer financial enhancement rating), respectively. The KKB series 2005-A and 2006-B benefit from an insurance policy from Ambac, the series 2006-A and 2007-A benefit from an insurance policy from FGIC, and the series 2007-B benefits from an insurance policy from MBIA. The KKB series 2007- C benefits from an insurance policy from the Asian Development Bank ('AAA' long-term foreign currency rating). The full financial guarantee insurance policies that the respective counterparty provides, guarantee the timely payment of interest and principal according to the transactions' terms. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the insurance provider or Standard & Poor's underlying rating on the securities. The 'BB-' long-term counterparty credit ratings on the FGIC-insured BTA 2007-A series, and KKB series 2006-A and 2007-A, reflect the corresponding SPUR and the de-linking of the rating from the bond insurer's rating. The 'AAA', 'A', and 'BBB+' long-term counterparty credit ratings on the respective BTA and KKB series, reflect the respective insurance provider's financial enhancement or corporate credit rating and are not affected by this rating action. The BTA series 2007-D and KKB series 2005-B notes do not benefit from an insurance policy and are rated on a stand-alone basis. Both programs are securitizations of all current and future diversified payment rights in the form of U.S. dollar-denominated Society for Worldwide Interbank Financial Telecommunication MT100 category payment order messages. These payment order messages are a product of the international financial operations of BTA and KKB, respectively. Payment orders are created as a result of BTA's or KKB's role as a financial intermediary between foreign payors that send funds to Kazakhstan and resident Kazakh entities that receive these funds. The transaction uses an offshore payment collection mechanism and has other structural features designed to mitigate credit risk. Ratings Lowered; Remain on Creditwatch Negative BTA DPR Finance Co. Stand-alone or underlying rating -------------------------------- Series To From ------ -- ---- 2007-A* BB-/Watch Neg BBB-/Watch Neg 2007-B� BB-/Watch Neg BBB-/Watch Neg 2007-C� BB-/Watch Neg BBB-/Watch Neg 2007-D� BB-/Watch Neg BBB-/Watch Neg Ratings Lowered; Placed on Creditwatch Negative Kazkommerts DPR Co. Stand-alone or underlying rating -------------------------------- Series To From ------ -- ---- 2005-A� BB-/Watch Neg BBB- 2005-B� BB-/Watch Neg BBB- 2006-A* BB-/Watch Neg BBB- 2006-B� BB-/Watch Neg BBB- 2007-A* BB-/Watch Neg BBB- 2007-B� BB-/Watch Neg BBB- 2007-C� BB-/Watch Neg BBB- * The rating action affects both the stand-alone and the underlying ratings. � The rating action only affects the underlying rating. � The rating action only affects the stand-alone rating; there is no underlying rating. BTA IPOTEKA: S&P Lowers Counterparty Credit Ratings to 'CCC+/C' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its counterparty credit ratings on two banks and one mortgage company in the Republic of Kazakhstan (FC: BBB-/Negative/A-3; LC: BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co., to 'CCC+/C' from 'B+/B'. The counterparty credit ratings on these entities were put on CreditWatch with negative implications. They had been on CreditWatch with developing implications since Feb. 3, 2009, after the government announced its proposed acquisition of majority stakes in these banks. "The rating action reflects our view of the increased probability of debt restructuring by BTA and its subsidiaries, and the reduced likelihood of support by the Kazakh government for BTA to meet its debt obligations according to their terms. S&P understand that the Kazakh government is not willing to guarantee these entities' debt obligations, which in our view increases the likelihood of a debt restructuring," said Standard & Poor's credit analyst Annette Ess, CFA. S&P classifies Kazakhstan as an "interventionist" country regarding its support of systemically important banks such as BTA. Despite the finalization of BTA's nationalization in February 2009, S&P's long-term rating on BTA no longer includes any additional notches above its stand-alone credit profile due to the lower probability of government support. S&P lowered its long- term ratings on BTAI and Temir Bank, and these are constrained by S&P's ratings on BTA. The rating actions also reflect S&P's view of the continuing downward pressure on these entities' stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. S&P expects to resolve the CreditWatch placements of BTA, Temirbank, and BTAI once S&P obtain information about an eventual debt restructuring and further clarification on the implications of the Kazakh government's ownership for these entities' creditworthiness, strategies, and financial flexibility. If debt restructuring is imminent S&P would change the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these institutions if either future government support or improvements in their own stand-alone credit profiles helps them to avoid a debt restructuring and allows them to meet all their obligations in a timely manner. DOSTYK COMPANIYASY: Creditors Must File Claims by April 24 ---------------------------------------------------------- LLP Dostyk Companiyasy Ltd. has declared insolvency. Creditors have until April 24, 2009, to submit written proofs of claim to: Brodsky Str. 37 Almaty Kazakhstan EL-KUAT LLP: Creditors Must File Claims by April 24 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP El-Kuat insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan GAS SERVICE: Creditors Must File Claims by April 24 --------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Gas Service insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: Sholohov Str. 10 Uralsk West Kazakhstan Kazakhstan Tel: 8 (7112) 23-23-27 8 701 599 27-85 The Court is located at: The Specialized Inter-Regional Economic Court of West Kazakhstan Seifullin Str. 37 Uralsk West Kazakhstan Kazakhstan KAZKOMMERTS DPR: S&P Cuts Ratings on 11 Transactions to 'BB-' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its stand-alone and/or underlying ratings on four BTA Bank JSC's BTA DPR Finance Co. (JSC Bank TuranAlem) and seven Kazkommertsbank JSC's Kazkommerts DPR Co. financial future flow transactions. All 11 transactions are backed by Kazakhstan's diversified payment rights. At the same time, the KKB transactions were placed on CreditWatch with negative implications and the BTA transactions remain on CreditWatch negative, where they were placed on Feb. 5, 2009. The rating actions are based on a recent review of both programs, following the recent March debt-service payment date. The quarterly reporting period, beginning in December 2008 and ending in March 2009, depicted a drop in the debt-service coverage ratio levels in both the BTA and KKB DPR programs. BTA's flow volumes have declined approximately 57.5% from the trailing 12-month quarterly average, while KKB's flows have declined nearly 29.2% over the same period. The rapid declines have been caused by the global economic downturn negatively impacting Kazakh-based exports (mineral or petroleum based) from a demand and price perspective. Given the very high industry and customer concentrations of the Kazakh DPR programs, these have resulted in a steep reduction in DPR flows and DSCR coverage ratios. BTA's DPR program traditionally exhibits one of the highest concentrated global DPR programs from an industry and customer perspective. As a result, BTA's DPR program has been and continues to be stressed at a higher level consistent with the increased concentration risks. BTA's DPR program currently has US$750 million outstanding and KKB's DPR program currently has US$934.38 million outstanding. Both programs' current DSCR meet S&P's requirements for a 'BB-' rating. KKB's DPR program rating is at the same level of Kazkommertsbank's long-term foreign and local currency rating of 'BB-'. BTA's DPR program rating is rated one notch above BTA Bank's long-term foreign and local currency rating of 'B+'. S&P will continue to surveil the issue ratings on these future flow securitizations, and S&P will revise them as necessary to reflect any future changes in the transactions' underlying credit quality. Both programs incorporated certain structural triggers that if breached, could cause either an early amortization or stepped-up amortization event if certain requirements are met. Another rating agency's bank rating requirements were breached when the agency lowered both banks' ratings recently. This, in addition to a decline in flows and capital adequacy ratio test breach, will, under the transaction's documentation, cause the BTA program to begin amortization of principal with the scheduled June debt- service payment. KKB's program has breached a ratings event, which under the transaction documentation will cause all series to amortize principal at a stepped-up level with the scheduled June debt-service payment. The early amortization events are not immediate since both banks have begun to fund a reserve account as a temporary (four-month period) action to cure the breached triggers. If certain requirements are not met under the transaction documents, a possible early amortization may begin in August for BTA, and a further stepped-up amortization for KKB in September. Standard & Poor's is in communication with the trustee for both programs, the Bank of New York Mellon, as well as with BTA and KKB. The BTA series 2007-A, 2007-B, and 2007-C notes benefit from an insurance policy provided by Financial Guaranty Insurance Co. (FGIC; 'CCC' insurer financial enhancement rating), MBIA Insurance Corp. (MBIA; 'BBB+' insurer financial enhancement rating), and Ambac Assurance Corp. (Ambac; 'A' insurer financial enhancement rating), respectively. The KKB series 2005-A and 2006-B benefit from an insurance policy from Ambac, the series 2006-A and 2007-A benefit from an insurance policy from FGIC, and the series 2007-B benefits from an insurance policy from MBIA. The KKB series 2007- C benefits from an insurance policy from the Asian Development Bank ('AAA' long-term foreign currency rating). The full financial guarantee insurance policies that the respective counterparty provides, guarantee the timely payment of interest and principal according to the transactions' terms. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the insurance provider or Standard & Poor's underlying rating on the securities. The 'BB-' long-term counterparty credit ratings on the FGIC-insured BTA 2007-A series, and KKB series 2006-A and 2007-A, reflect the corresponding SPUR and the de-linking of the rating from the bond insurer's rating. The 'AAA', 'A', and 'BBB+' long-term counterparty credit ratings on the respective BTA and KKB series, reflect the respective insurance provider's financial enhancement or corporate credit rating and are not affected by this rating action. The BTA series 2007-D and KKB series 2005-B notes do not benefit from an insurance policy and are rated on a stand-alone basis. Both programs are securitizations of all current and future diversified payment rights in the form of U.S. dollar-denominated Society for Worldwide Interbank Financial Telecommunication MT100 category payment order messages. These payment order messages are a product of the international financial operations of BTA and KKB, respectively. Payment orders are created as a result of BTA's or KKB's role as a financial intermediary between foreign payors that send funds to Kazakhstan and resident Kazakh entities that receive these funds. The transaction uses an offshore payment collection mechanism and has other structural features designed to mitigate credit risk. Ratings Lowered; Remain on Creditwatch Negative BTA DPR Finance Co. Stand-alone or underlying rating -------------------------------- Series To From ------ -- ---- 2007-A* BB-/Watch Neg BBB-/Watch Neg 2007-B� BB-/Watch Neg BBB-/Watch Neg 2007-C� BB-/Watch Neg BBB-/Watch Neg 2007-D� BB-/Watch Neg BBB-/Watch Neg Ratings Lowered; Placed on Creditwatch Negative Kazkommerts DPR Co. Stand-alone or underlying rating -------------------------------- Series To From ------ -- ---- 2005-A� BB-/Watch Neg BBB- 2005-B� BB-/Watch Neg BBB- 2006-A* BB-/Watch Neg BBB- 2006-B� BB-/Watch Neg BBB- 2007-A* BB-/Watch Neg BBB- 2007-B� BB-/Watch Neg BBB- 2007-C� BB-/Watch Neg BBB- * The rating action affects both the stand-alone and the underlying ratings. � The rating action only affects the underlying rating. � The rating action only affects the stand-alone rating; there is no underlying rating. MAN SHUGAR: Creditors Must File Claims by April 24 -------------------------------------------------- LLP Man Shugar Kazakhstan England has declared insolvency. Creditors have until April 24, 2009, to submit written proofs of claim to: Timiryazev Str. 61-2 Almaty Kazakhstan Tel: 8 (7272) 75-67-84 OVTI-N LLP: Creditors Must File Claims by April 24 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Ovti-N insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: Gogol Str. 177a Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan SILK WAY: Creditors Must File Claims by April 24 ------------------------------------------------ LLP Silk Way Center Travel has declared insolvency. Creditors have until April 24, 2009, to submit written proofs of claim to: Mukanov Str. 211 Almaty Kazakhstan TEMIR BANK: S&P Downgrades Counterparty Credit Ratings to 'CCC+/C' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered its counterparty credit ratings on two banks and one mortgage company in the Republic of Kazakhstan (FC: BBB-/Negative/A-3; LC: BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co., to 'CCC+/C' from 'B+/B'. The counterparty credit ratings on these entities were put on CreditWatch with negative implications. They had been on CreditWatch with developing implications since Feb. 3, 2009, after the government announced its proposed acquisition of majority stakes in these banks. "The rating action reflects our view of the increased probability of debt restructuring by BTA and its subsidiaries, and the reduced likelihood of support by the Kazakh government for BTA to meet its debt obligations according to their terms. S&P understand that the Kazakh government is not willing to guarantee these entities' debt obligations, which in our view increases the likelihood of a debt restructuring," said Standard & Poor's credit analyst Annette Ess, CFA. S&P classifies Kazakhstan as an "interventionist" country regarding its support of systemically important banks such as BTA. Despite the finalization of BTA's nationalization in February 2009, S&P's long-term rating on BTA no longer includes any additional notches above its stand-alone credit profile due to the lower probability of government support. S&P lowered its long- term ratings on BTAI and Temir Bank, and these are constrained by S&P's ratings on BTA. The rating actions also reflect S&P's view of the continuing downward pressure on these entities' stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. S&P expects to resolve the CreditWatch placements of BTA, Temirbank, and BTAI once S&P obtain information about an eventual debt restructuring and further clarification on the implications of the Kazakh government's ownership for these entities' creditworthiness, strategies, and financial flexibility. If debt restructuring is imminent S&P would change the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these institutions if either future government support or improvements in their own stand-alone credit profiles helps them to avoid a debt restructuring and allows them to meet all their obligations in a timely manner. TEMIR TULPAR: Creditors Must File Claims by April 24 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Temir Tulpar Kz insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi Str. 29 120014 Kyzylorda Kyzylorda Kazakhstan VOSTOK ROSS: Creditors Must File Claims by April 24 --------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Vostok Ross Complect insolvent. Creditors have until April 24, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== SAVOIR FAIRE: Creditors Must File Claims by April 3 --------------------------------------------------- Creditors of LLC Savoir Faire Bishkek Co. Ltd. have until April 3, 2009, to submit proofs of claim. The company can be reached at: LLC Savoir Faire Bishkek Co. Ltd. Tel: (+996 312) 66-17-74 TELCOM PROJECT: Creditors Must File Claims by April 3 ----------------------------------------------------- Creditors of LLC Telcom Project have until April 3, 2009, to submit proofs of claim. The company can be reached at: LLC Telcom Project Tel: (+996 312) 56-50-29 =========== L A T V I A =========== * LATVIA: European Commission Authorizes Temproary Aid Scheme -------------------------------------------------------------- The European Commission has authorized, under EC Treaty state aid rules, a Latvian measure to help businesses to deal with the current economic crisis. Under the scheme, aid of up to EUR500,000 per firm may be granted in 2009 and 2010 to businesses facing funding problems because of the current credit squeeze. The aid will be granted in form of public guarantees. The scheme meets the conditions of the Commission's Temporary Framework for state aid measures, which gives Member States additional scope to facilitate access to financing in the present economic and financial crisis. It is therefore compatible with Article 87(3) (b) of the EC Treaty, which permits aid to remedy a serious disturbance in the economy of a Member State. "The scheme will help alleviate the difficulties faced by Latvian businesses affected by the current situation without giving rise to any undue distortions of competition," said Competition Commissioner Neelie Kroes. "The Commission was able to approve the measures very quickly thanks to excellent cooperation with the Latvian authorities." The scheme is based on the provisions of the temporary framework that deal with compatible aid of a limited amount. In particular, the maximum amount of aid does not exceed EUR500,000 per company and the scheme applies only to businesses which were not in difficulty on July 1, 2008. ================= L I T H U A N I A ================= UAB BITE: Fitch Cuts Long-Term Issuer Default Rating to 'RD' ------------------------------------------------------------ Fitch Ratings has taken these rating actions in respect of Lithuania-based mobile operator UAB Bite Lietuva following confirmation of the settlement of the purchase of EUR103.93 million of Bite Finance International B.V.'s EUR110 million subordinated notes by Bite's holding company, Bite Finance International (Cayman) Ltd.: UAB Bite Lietuva: -- Long-term Issuer Default Rating downgraded to 'RD' from 'C' Bite Finance International B.V.: -- EUR110 million senior subordinated notes: affirmed at 'C'; Recovery Rating revised to 'RR5' from 'RR6'. Both ratings have been withdrawn. The revision of the Recovery Rating for Bite Finance International B.V.'s subordinated notes reflects the higher recovery level received by tendering noteholders. The agency has withdrawn the rating on this instrument, due to the very small amount of debt outstanding and the removal of the restrictive covenants and events of default noted below. Bite also received sufficient consents to amend the indenture applying to the subordinated notes to remove substantially all of the restrictive covenants and events of default, except for those relating to non-payment, and to release collateral. The purchase was considered a coercive debt exchange in accordance with Fitch's criteria. Subsequently, Fitch has taken these rating actions: UAB Bite Lietuva: -- Long-term IDR upgraded to 'CCC' from 'RD'; assigned a Negative Outlook SIA EECF Bella Finco: -- EUR30 million senior secured revolving credit facility (RCF) upgraded to 'B-' (B minus) from 'CC'; Recovery Rating is 'RR3' Bite Finance International B.V.: -- EUR190 million senior secured notes upgraded to 'CCC' from 'CC'; Recovery Rating revised to 'RR4' from 'RR3' The upgrade of the IDR to 'CCC' subsequent to the completion of the CDE reflects the improved cash flow headroom which the company will have following the reduction in interest payable on the EUR103.93 million of subordinated notes repurchased, but this is counterbalanced by deteriorating economic conditions in Lithuania and Latvia, which drive the Negative Outlook assigned to the IDR. The agency estimates that the cash interest savings of up to EUR10 million p.a. could be sufficient to enable the company to reach cash flow breakeven if EBITDA and operating cashflows do not deteriorate in 2009. However, the expected sharp contraction in economic growth in both countries this year (Fitch forecasts Lithuania's real GDP will contract by 6.5% and that Latvia's real GDP will contract by 12%) make this goal very challenging. The Negative Outlook therefore reflects the continued risks inherent in the new entrant strategy in Latvia, which is the reason why the consolidated group has yet to generate sustainable positive free cash flows. Despite the increased risk to the currency peg in Latvia highlighted by Fitch on February 24, 2009, the agency does not currently consider a failure of the peg as the most likely scenario in either Latvia or Lithuania. The continuation of the currency peg in Lithuania in particular supports the company's capital structure, in which substantially all debt is denominated in euros while 90-95% of revenues are generated in local currencies. =================== L U X E M B O U R G =================== FORTIS LUXEMBOURG: Moody's Junks Rating on Series 180 Notes ----------------------------------------------------------- Moody's Investors Service has downgraded its rating of the Series 180 combination note issued by Fortis Luxembourg Finance S.A. Fortis Luxembourg Finance S.A. Series 180 is a combination note combining two synthetic tranches (Class A and Class B) referencing a portfolio of corporate entities. The rating of Series 180 addresses the ultimate repayment of the rated balance in respect of the notes on or before the legal maturity date, where the "rated balance" is equal, at any time, to the principal amount of the notes on the issue date (EUR85,000,000) minus the aggregate of all payments made since the issue date, either interest or principal. Moody's explained that the rating actions taken are the result of (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology for Corporate Synthetic CDOs as described in Moody's Special Report below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (December 2008) The rating actions are: Fortis Luxembourg Finance S.A : (1) EUR85,000,000 Series 180 Credit Linked Notes due October 2012 -- Current Rating: Caa2 -- Prior Rating: A3 -- Prior Rating Date: 9 December 2004, assigned A3 ===================== N E T H E R L A N D S ===================== BITE FINANCE: Moody's Changes Default Rating to 'Ca/LD' ------------------------------------------------------- Moody's Investors Service changed the probability of default rating of Bite Finance International B.V to Ca/LD. It also downgraded the rating on the EUR110 million senior subordinated floating rate notes due 2017 to Ca; and kept all ratings under review. The change in PDR to Ca/LD (from Ca) follows the successful conclusion on March 18, 2009 of the tender offer by Bite Finance International (Cayman) Ltd for the EUR110 million senior subordinated floating rate notes due 2017 (issued by Bite Finance International B.V) at a price of 35% of par value. Acceptances were received for EUR103.93 million of notes (about 94.5%, exceeding the 90% minimum threshold). The "/LD" suffix will be removed after three business days. The downgrade of the subordinated notes to Ca from Caa3 reflects the 65% loss arising from the exchange, compared to the par value of those notes. The balance EUR6.07 million of subordinated notes that were not tendered will remain outstanding. Moody's notes that amendments to the subordinated notes requested by Bite in parallel with the tender offer, that remove substantially all covenants and release collateral, have also been passed. Additionally, Moody's notes some residual uncertainty as to the amount of purchased notes that Bidco will cancel. Approval by Bite's banks is required to cancel more than EUR50 million. Moody's believes that Bidco will cancel at least EUR50 million of notes, and that ultimately all the notes are likely to be cancelled as the consequent reduction in Bite's debt should benefit all creditors. However, the ratings will be kept under review until there is greater certainty over Bite's final capital structure, as well as its resulting liquidity profile and updated strategic plan. If a high percentage of the notes is cancelled, then a ratings downgrade of Bite's CFR and PDR below their current levels is unlikely. However, the rating of the outstanding subordinated notes will need to incorporate their new status as unsecured obligations, due to the loss of collateral (and removal of protective covenants). The last rating announcement for Bite was on February 18, 2009, when the PDR was downgraded to Ca and the ratings placed under review. Bite Finance International B.V. is the Dutch holding company of the Lithuanian company Bite Lietuva UAB. Bite is a mobile telecommunications operator in Lithuania and Latvia, which reported 2008 service revenue of about EUR188 million. In February 2007 a private equity consortium led by Mid Europa Partners acquired Bite through a leveraged buyout for a total consideration of EUR443 million. BITE FINANCE: Fitch Affirms Rating on EUR110 Mln Notes at 'C' ------------------------------------------------------------- Fitch Ratings has taken these rating actions in respect of Lithuania-based mobile operator UAB Bite Lietuva following confirmation of the settlement of the purchase of EUR103.93 million of Bite Finance International B.V.'s EUR110 million subordinated notes by Bite's holding company, Bite Finance International (Cayman) Ltd.: UAB Bite Lietuva: -- Long-term Issuer Default Rating downgraded to 'RD' from 'C' Bite Finance International B.V.: -- EUR110 million senior subordinated notes: affirmed at 'C'; Recovery Rating revised to 'RR5' from 'RR6'. Both ratings have been withdrawn. The revision of the Recovery Rating for Bite Finance International B.V.'s subordinated notes reflects the higher recovery level received by tendering noteholders. The agency has withdrawn the rating on this instrument, due to the very small amount of debt outstanding and the removal of the restrictive covenants and events of default noted below. Bite also received sufficient consents to amend the indenture applying to the subordinated notes to remove substantially all of the restrictive covenants and events of default, except for those relating to non-payment, and to release collateral. The purchase was considered a coercive debt exchange in accordance with Fitch's criteria. Subsequently, Fitch has taken these rating actions: UAB Bite Lietuva: -- Long-term IDR upgraded to 'CCC' from 'RD'; assigned a Negative Outlook SIA EECF Bella Finco: -- EUR30 million senior secured revolving credit facility (RCF) upgraded to 'B-' (B minus) from 'CC'; Recovery Rating is 'RR3' Bite Finance International B.V.: -- EUR190 million senior secured notes upgraded to 'CCC' from 'CC'; Recovery Rating revised to 'RR4' from 'RR3' The upgrade of the IDR to 'CCC' subsequent to the completion of the CDE reflects the improved cash flow headroom which the company will have following the reduction in interest payable on the EUR103.93 million of subordinated notes repurchased, but this is counterbalanced by deteriorating economic conditions in Lithuania and Latvia, which drive the Negative Outlook assigned to the IDR. The agency estimates that the cash interest savings of up to EUR10 million p.a. could be sufficient to enable the company to reach cash flow breakeven if EBITDA and operating cashflows do not deteriorate in 2009. However, the expected sharp contraction in economic growth in both countries this year (Fitch forecasts Lithuania's real GDP will contract by 6.5% and that Latvia's real GDP will contract by 12%) make this goal very challenging. The Negative Outlook therefore reflects the continued risks inherent in the new entrant strategy in Latvia, which is the reason why the consolidated group has yet to generate sustainable positive free cash flows. Despite the increased risk to the currency peg in Latvia highlighted by Fitch on February 24, 2009, the agency does not currently consider a failure of the peg as the most likely scenario in either Latvia or Lithuania. The continuation of the currency peg in Lithuania in particular supports the company's capital structure, in which substantially all debt is denominated in euros while 90-95% of revenues are generated in local currencies. LYONDELLBASELL: Misses Interest Payment on EUR500 Million Bond -------------------------------------------------------------- The International Swaps and Derivatives Association said in a March 20 statement that LyondellBasell Industries AF SCA failed to pay interest on EUR500 million (US$679 million) of bonds maturing in 2015, Bloomberg News' Shannon D. Harrington and Abigail Moses report. Bloomberg News relates a LyondellBasell spokesman in Houston said Friday last week the company missed a payment due Feb. 15 and a 30-day grace period deadline. According to Bloomberg News, the default will trigger payouts on credit-default swaps guaranteeing as much as US$1.5 billion of the company�s debt. Citing data from the Depository Trust & Clearing Corp., Bloomberg News discloses traders had bought or sold a net US$744 million in protection on LyondellBasell debt through credit swaps as of March 13. Another US$786 million of protection was bought through index contracts that include LyondellBasell among a group of 50 companies, Bloomberg News adds. About LyondellBasell LyondellBasell Industries -- http://www.lyondellbasell.com/-- is a refiner of crude oil; a significant producer of gasoline blending components; a global manufacturer of chemicals and polymers, including polyolefins and advanced polyolefins; and the leading developer and licensor of technologies for the production of polymers. Following the acquisition of Lyondell in 2007, LyondellBasell became the world's largest independent producer of polypropylene and advanced polyolefins products, a leading supplier of polyethylene, and a global leader in the development and licensing of polypropylene and polyethylene processes and related catalyst sales. The group is estimated to generate 2007 revenues of US$44 billion and EBITDA of US$4.1 billion reflecting strong performance of Lyondell and Basell businesses at the top of the cycle. LyondellBasell is saddled with debt as part of its US$12.7 billion merger in 2007. As reported by the Troubled Company Reporter, the company has brought on board Kevin M. McShea of AlixPartners, LLP, as Chief Restructuring Officer of LyondellBasell and its subsidiaries. The company also has hired advisers, including Evercore and New York law firm Cadwalader, Wickersham & Taft LLP, to advise it on its restructuring efforts. Lyondell disclosed in its latest quarterly results that it has US$27.12 billion in assets and US$228 million stockholders' deficit as of Sept. 30, 2008. It incurred a US$232 million net loss in the three months ended Sept. 30, 2008, compared to a US$206 million net profit during the same period in 2007. Headquartered in Houston, Texas, Equistar Chemicals LP, is a wholly owned subsidiary of Lyondell Chemical Company, which produces ethylene, propylene and polyethylene in North America and ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. For three months ended Sept. 30, 2008, Equistar Chemicals posted net loss of US$271 million compared to net income of US$22 million for the same period in the previous year. At Sept. 30, 2008, Equistar Chemicals' balance sheet showed total assets of US$9.0 billion and total liabilities of US$19.0 billion, resulting in a partners' deficit of US$9.9 billion. * * * As reported in the Troubled Company Reporter-Europe on Feb. 18, 2009, Standard & Poor's Ratings Services said it lowered its long- term corporate credit rating on The Netherlands-based petrochemicals producer LyondellBasell Industries AF S.C.A. to 'D' from 'SD'. S&P also lowered the subordinated debt ratings on the US$615 million and EUR500 million European bonds due 2015 issued by the company to 'D' from 'C'. "The rating action follows LyondellBasell's payment default on coupons of the two bonds on Feb. 15, 2009," said Standard & Poor's credit analyst Tobias Mock. "Although there is a grace period of 30 days, S&P do not consider it likely that the company will pay the coupons within this period." The issue rating on Basell Finance Co. B.V.'s US$300 million notes due 2027 remains at 'C' because no payment default has occurred on them. STICHTING ELEVEN: Moody's Assigns 'Ba3' Rating on Class E Notes --------------------------------------------------------------- Moody's Investors Service has assigned definitive long term ratings to five classes of Notes issued by Stichting Eleven Cities No. 5. The definitive ratings assigned are: -- Aaa to the EUR763.05 Million Floating Rate Senior Class A Mortgage-Backed Notes 2009 due 2090 -- Aa3 to the EUR17.05 Million Floating Rate Mezzanine Class B Mortgage-Backed Notes 2009 due 2090 -- A3 to the EUR16.20 Million Floating Rate Mezzanine Class C Mortgage-Backed Notes 2009 due 2090 -- Baa3 to the EUR7.30 Million Floating Rate Mezzanine Class D Mortgage-Backed Notes 2009 due 2090 -- Ba3 to the EUR6.40 Million Floating Rate Junior Class E Mortgage-Backed Notes 2009 due 2090 Moody's did not assign ratings to the Class F Notes. This transaction represents the fifth securitization of Dutch residential mortgage loans originated by Friesland Bank N.V. and has been arranged by The Royal Bank of Scotland plc and ING Bank N.V. The Notes are secured by Dutch Residential Mortgages which are assigned to the Issuer; the security assignments closely follow the security structure observed in other Dutch Residential Mortgage-Backed transactions. The collateral consists of a combination of NHG and non-NHG mortgages. The transaction benefits from a swap with The Royal Bank of Scotland to hedge interest rate risk over the entire term of the transaction. Excess Margin in the transaction is guaranteed through the operation of the interest rate swap. The benefit of Excess Margin to the transaction is enhanced by structural features - once it has been used to cover losses and top up the Reserve Account to its target level, any Excess Margin is used to amortize the Class F Notes. This will leave the credit enhancement available to the senior Notes unchanged. The 2.4 per cent Liquidity Fund was fully funded at closing. The GIC is provided by ING Bank N.V. Moody's applied its Dutch MILAN loan-by-loan analysis to assess the reference portfolio as described in the report "Moody's Approach to Rating Dutch RMBS", published in December 2004 and updated in March 2009. The expected portfolio loss and the Aaa required credit enhancement serve as input parameters for Moody's cash flow and tranching model, which is based on a probabilistic lognormal distribution and described in the report "The Lognormal Method Applied to ABS Analysis", published in September 2000. The key parameters used by Moody's to calibrate the loss distribution for this portfolio include a Milan Aaa CE of 7.8% and an Expected Loss of 1.2%. The definitive ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for the timely payment of interest and ultimate payment of principal by the legal final maturity. UPC HOLDING: Moody's Upgrades Corporate Family Rating to 'Ba3' -------------------------------------------------------------- Moody's Investors Service has upgraded the corporate family rating of UPC Holding B.V. to Ba3 from B1. At the same time, Moody's has affirmed the rating on the existing senior secured bank facilities at Ba3 and upgraded the ratings on the senior unsecured bonds to B2 from B3. The outlook on the ratings is stable. The upgrade of the corporate family rating reflects the company's strong performance in 2008 and consistent leverage policy of 4.0x Senior Debt to EBITDA and 5.0x Total Debt to EBITDA. Moody's believes that due to UPC's diversification in the European markets, the company is well positioned to weather the challenging economic conditions. Furthermore, UPC Broadband group includes VTR Globalcom S.A. (a leading cable operator in Chile), which demonstrated a robust growth in revenue and Operating Cash Flow in 2008, 11.6% and 17.9% respectively. Given the public guidance for 2009 of Liberty Global Inc., UPC's parent company, Moody's believes that UPC could increase its free cash flow generation as its capex spend as a percentage of revenue is likely to decrease. In addition to its solid operating performance in 2008, UPC has also continued adhering to its publicly stated financial policy of not exceeding 5.0x Total Debt to EBITDA as enshrined in the terms and conditions of its existing debt instruments. Moody's notes that the company pursues a strategy whereby it aims to keep the leverage close to the stated leverage parameters, thus increasing its debt levels in line with growth in OCF. The Ba3 rating reflects the company's intention to maintain this strategy; i.e. over the short term the leverage could decrease due to various factors, including market conditions, but over the medium term the leverage is likely to rise to the level of the indicated parameters. Therefore, Moody's does not assume in its rating a de-leveraging trajectory going forward. At the same time, Moody's notes the competitive nature of the company's markets, particularly the Netherlands, Austria, Hungary and Romania. In the Netherlands, the regulator mandated the cable operators, including UPC Netherlands, to re-sell their analogue video products. Although this initiative is to stay in place for the next three years starting in 2009, it could create further competition on the already competitive market in the Netherlands. In Austria, the company's revenue declined in 2008 by 0.4% whilst OCF increased by 6.6%. Overall, the company's modest growth in revenue in most of its markets was off-set by a strong, double- digit, growth in OCF in a number of its markets. Overall, UPC Broadband division (excluding VTR) generated 14.2% OCF growth in 2008 (re-based). In 2008, the company generated EUR150.7 million in free cash flow (excluding EUR54.4 million paid for acquisitions). At the same time, the company up-streamed net EUR1.2 billion out of UPC group, as a payment under its shareholder loan, which had a balance of EUR8.5 billion at the year-end. This payment was largely financed through drawdowns under the existing senior secured facility. LGI is expected to continue sweeping cash from many of its subsidiaries, including UPC. Moody's notes that at this stage it does not include the EUR8.5 billion shareholder loan in its leverage calculations as it is regarded at this time as a deeply quasi-equity intercompany loan instrument. Additionally, the company's parent, LGI, has not been reliant on the shareholder loan payments to meet its liquidity needs. However, in the event the parent company's reliance on cash distributions under the shareholder loan were to increase materially, Moody's would re- assess the shareholder loan position in the capital structure in the context of the impact that any developing weakness at LGI might have on the family as a whole. The last rating action was on 2 April 2007 when the rating on the senior secured facility was upgraded to Ba3. UPC Holding B.V. is a pan-European cable provider, a principal subsidiary of Liberty Global Inc. In 2008, the company generated EUR3.5 billion in revenue and EUR1.6 billion in reported operating cash flow. =========== R U S S I A =========== BORETS INT'L: S&P Assigns 'BB-' Long-Term Corporate Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB-' long-term corporate credit rating and 'ruAA-' Russia national scale rating to electrical submersible pumps producer Borets International Ltd., which is registered in the British Virgin Islands and operates mainly in Russia. The outlook is stable. "In our view, Borets' credit quality is constrained by the group's internal liquidity, with currently restricted access to external financing and a high dependence on shareholders to provide support should the company require additional funds," said Standard & Poor's credit analyst Varvara Nikanorava. "Other constraining factors include limited product and geographic diversification and exposure to Russia country risks, where S&P understand a significant part of the company's EBITDA is generated." These factors are partly mitigated, in S&P's view, by the company's leading position in the global electrical submersible pumps business, its strong operating performance in recent years, and the company's moderate financial leverage. S&P also considers the willingness and ability of both the majority and strategic shareholders to support the company as a significantly positive rating factor. Borets is an oilfield services company, which manufactures full ESP systems, ESP components and spare parts, and provides ESP repair and maintenance services. S&P notes that Borets enjoys a leading market position in Russia and is among industry leaders internationally. S&P considers Borets' operating profitability to have been relatively robust in recent years, with a reported EBITDA margin of about 30%, reflecting strong ESP demand, especially in Russia. S&P considers the company's financial profile as strong for the current rating, with an estimated adjusted debt to EBITDA of about 2x for the fiscal year ended Dec. 31, 2008, including shareholder loans in debt. As of end-December 2008, Borets had about US$270 million reported total debt. "The stable outlook reflects our view that the company will manage its liquidity position in a manner commensurate with the current rating and will be able to pay its mandatory debt payments when they fall due from its internally generated funds, available cash, and cash injections from the shareholders," said Ms. Nikanorava. It also reflects S&P's view that the shareholders will continue to be willing and able to support Borets. S&P also assumes that Borets will be successful in gradually expanding its geographic presence and protecting its market positions as well as protecting its operating margins from a further decline. BRYANSKIY CONSTRUCTION: Creditors Must File Claims by April 5 ------------------------------------------------------------- Creditors of LLC Bryanskiy Construction Materials Plant (TIN 3235015530) have until April 5, 2009, to submit proofs of claims to: Z.Ganiyev Insolvency Manager Office 61 Potapovskiy pereulok 9/11 101000 Moscow Russia The Arbitration Court of Bryanskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09�399/2009,. The Debtor can be reached at: LLC Bryanskiy Construction Materials Plant Proezd Moskovskiy 14 140742 Bryansk Russia EXPERIMENTAL REPAIR: Under External Bankruptcy Procedure -------------------------------------------------------- The Arbitration Court of Tatarstan has commenced external management bankruptcy procedure on OJSC Experimental Repair and Engineering Plant (TIN 1657004941, RVC 165101001). The Case is docketed under No. A65�11099/2008�SG4�39. The External Insolvency Manager is: Yu. Onufrienko Post User Box 2119 Postal Office 61 420061 Kazan Tatarstan Russia The Debtor can be reached at: OJSC Experimental Repair and Engineering Plant Korolenko St. 120 42009,4 Kazan' Tatarstan Russia FINANCE LEASING: Investors Seek Early Repayment of US$250MM Bonds ----------------------------------------------------------------- Denis Maternovsky at Bloomberg News reports that Finance Leasing Co. faces demands for early repayment on as much as US$250 million of bonds. FLC missed US$12 million of coupon payments on its US$150 million of 10 percent bonds due 2013 and US$100 million of 9.25 percent four-year notes, Bloomberg News discloses citing Nicolas Genechesi, who holds US$3.7 million of the company's debt. Mr. Genechesi, as cited by the report, said investors in FLC's US$150 million of securities will ask the bonds' trustee, Bank of New York Mellon Corp., to request full repayment "within three weeks". Bloomberg News recalls Mr. Genechesi also said investors in FLC's defaulted four-year bonds are also considering pushing for early repayment. Mr. Genechesi, Bloomberg News relates, has warned "If the government doesn't resolve the FLC default very quickly, all Russian state-owned companies will be viewed differently by domestic and foreign investors". The default may "end up costing them many billions of dollars," Bloomberg News quoted Mr. Genechesi as saying. However, Andrei Saiko, a spokesman for the Finance Ministry said "We have received no requests from FLC", Bloomberg News recounts. Bloomberg News notes according to Mr. Genechesi, investors in FLC's debt include 40 to 50 foreign and Russian financial institutions. Headquartered in Moscow, Russia, Finance Leasing Co. is an airplane leasing company. It is 28.7 per cent-owned by the Russian government and 51.8 percent-owned by OAO United Aircraft Corp. * * * As reported in the Troubled Company Reporter-Europe on Jan. 22, 2009, Moody's Investors Service downgraded the long-term issuer and debt ratings of Finance Leasing Company to Caa3 from Ba3. At the same time, Moody's Interfax Rating Agency, which is majority- owned by Moody's, downgraded FLC's long-term National Scale Rating (NSR) to Caa2.ru from Aa3.ru. The issuer and debt ratings were placed on review with direction uncertain. KAMSKIY CAR-REPAIR: Creditors Must File Claims by May 6 ------------------------------------------------------- Creditors of LLC Kamskiy Car-Repair Plant (TIN 1650114039, PSRN 1041616008830) have until May 6, 2009, to submit proofs of claims to: V. Shevelev Insolvency Manager Post User Box 75 420021 Kazan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65�10132/2008-SG4�40. KARACHAEVO CHERKESSK: Creditors Must File Claims by May 6 --------------------------------------------------------- Creditors of SUE Karachaevo Cherkessk Les Prom (TIN 0901047727, PSRN 1020900512236) (Forestry) have until May 6, 2009, to submit proofs of claims to: D. Kochkarov Insolvency Manager U.Aliyeva St. 72 Cherkessk 36900 Kabardino-Balkaria Russia The Arbitration Court of Kabardino-Balkaria commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A25�647/08�10. The Debtor can be reached at: SUE Karachaevo-Cherkessk-Les-Prom Ploshchad� Kirova 23 Cherkessk 369015 Kabardino-Balkaria Russia KONTSERN-M CJSC: Creditors Must File Claims by April 5 ------------------------------------------------------ Creditors of CJSC Kontsern-M (TIN 7415005464, PSRN 1027402328667) (Tooling Industry) have until April 5, 2009, to submit proofs of claims to: G. Kazakbayev Temporary Insolvency Manager Office 47a Antsiferova St. 8a Yoshkar-Ola 424039 Mari El Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A 76� 24176/2008�56�153. The Debtor can be reached at: CJSC Kontsern-M Prospect Pobedy 168 Chelyabinsk 454084 Chelyabinskaya Russia LES-META-YUG LLC: Court Names Temporary Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Arkhangelskaya has appointed Yu. Sokolov as Temporary Insolvency Manager for LLC Les-Meta-Yug (TIN 2312096661, PSRN 1032307165516) (Lumbering Industry). The case is docketed under Case No. A05�13828/2008. He can be reached at: Apt. 71 Uritskogo St. 54 163060 Arkhangelsk Russia The Debtor can be reached at: LLC Les-Meta-Yug Rechnaya St. 7a/3 Udimskiy Kotlasskiy 165370 Arkhangelskaya Russia REM-STROY-TREST A 21: Court Names Temporary Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Moscow appointed M.Vasilega as Temporary Insolvency Manager for LLC Rem-Stroy-Trest A 21 (TIN 7701279681, PSRN 102770051663) (Construction). The case is docketed under Case No. A40�88117/08�70�31B. He can be reached at: Post User Box 100 105318 Moscow Russia The Debtor can be reached at: LLC Rem-Stroy-Trest A 21 Building 1a 2-ya Baumanskaya St. 7 107005 Moscow Russia SHATUR-TORF OJSC: Creditors Must File Claims by April 5 ------------------------------------------------------- Creditors of OJSC Shatur-Torf (TIN 5049007380, PSRN 1025006466957) (Peat Digging, Peat Products) have until April 5, 2009, to submit proofs of claims to: N. Vitchukov Temporary Insolvency Manager Hall 440 Akademika Sakharova St. 18 107996 Moscow Russia The Arbitration Court of Moskovskaya will convene at 10:00 a.m. on June 10, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A41�3269/09. The Debtor can be reached at: OJSC Shatur-Torf Chernoozerskiy prospect 2 Shatura 140700 Moskovskaya Russia SPETS GAZ: Creditors Must File Claims by April 5 ------------------------------------------------ Creditors of LLC Spets Gaz Trans Stroy (TIN 0278101040, PSRN 1040204596101) (Construction) have until April 5, 2009, to submit proofs of claims to: I. Ishmukhametov Temporary Insolvency Manager Kalinina St. 22 Krasnousol'sk Gafuriyskiy 453051 Bashkortostan Russia The Arbitration Court of Bashkortostan will convene on April 2, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A07�14447/2008. The Debtor can be reached at: LLC Spets Gaz Trans Stroy Fedorovka Ufa 450902 Bashkortostan Russia UC RUSAL: Onexim Agrees to Convert US$2-Bln Debt Into Shares ------------------------------------------------------------ United Co. Rusal said Sunday it signed an agreement with Onexim Group restructuring the aluminum producer's US$2.8 billion debt. The parties have agreed that US$2.0 billion of the debt will be converted into Rusal shares. Onexim's stake in Rusal will consequently increase to 18.5%. The stakes of other shareholders will change accordingly, with En+ holding 53.8%, shareholders of SUAL Group 18%, and Glencore 9.7%. The remaining US$800 million debt to Onexim will be restructured. Rusal intends to agree the terms of the restructuring with the rest of its lenders in the near future. As part of the agreement, Onexim has agreed not to exercise its put option on any of its shares in Rusal during the period of the standstill agreement signed with the international lending banks as well as to facilitate Rusal's further debt restructuring. "The agreement with Onexim is another important step in the process of Rusal's debt restructuring," the company said in a statement. The company recently signed a two month standstill agreement with the international lending banks. During this period, the company said it will negotiate the terms of a long-term debt restructuring. As reported in the Troubled Company Reporter-Europe on March 20, 2009, Russia's First Deputy Prime Minister Igor Shuvalov, as cited by Bloomberg News, said Rusal won't be bailed out by the government. According to the Bloomberg News, Mr. Shuvalov said he's held "unofficial" talks with Rusal's creditors to make clear that the government isn't considering buying a stake in the company or restructuring the company's debt. However, Mr. Shuvalov, as cited by the news agency, said the government may allow Rusal to pay foreign creditors in shares. Rusal isn't counting on financial help from the government and plans to reorganize its borrowings and cut costs, the Moscow-based company said in an e-mail obtained by Bloomberg News. In an earlier statement, Rusal said the standstill 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. The agreement obtained support from majority of RUSAL's international lending banks and Russian lenders as well, the company 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. About ONEXIM Group ONEXIM Group, a private investment fund, was founded in 2007 and has a diversified portfolio of investments in the metals and mining sector, energy, including fuel cell and nanotechnology, financial services, media and real estate. 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. ULAN-UDENSKAYA ENERGY: Creditors Must File Claims by May 6 ---------------------------------------------------------- Creditors of MUE Ulan-Udenskaya Energy Company have until May 6, 2009, to submit proofs of claims to: R. Yerbanov Insolvency Manager Post User Box 2713 670033 Ulan-Ude Russia The Arbitration Court of Buryatia commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10�3514/08. The Debtor can be reached at: MUE Ulan-Udenskaya Energy Company Mokrova St. 16 Ulan-Ude Russia =============== S L O V E N I A =============== * SLOVENIA: Commission Approves Liquidity Scheme for Fin'l Sector ----------------------------------------------------------------- The European Commission has approved, under EC Treaty state aid rules, a Slovenian support scheme to stabilize financial markets by providing state loans to eligible financial institutions to ensure their access to financing. The Commission found the measure to be in line with its October 2008 Guidance Communication on state aid to overcome the financial crisis. In particular, the scheme is non-discriminatory, limited in time and scope, provides for behavioural constraints to avoid abuses and is subject to a market-oriented remuneration from the beneficiaries. The Commission therefore concluded that the scheme was an adequate means to remedy a serious disturbance of the Slovenian economy and as such in line with Article 87.3.b of the EC Treaty. Competition Commissioner Neelie Kroes said: "The Slovenian liquidity scheme complements the guarantee scheme already in place. It will ensure that financial institutions in Slovenia have adequate access to refinancing while limiting distortions of competition." The objective of the liquidity scheme is to provide short and medium term financing to the credit institutions which are unable to obtain funds on the financial markets under the previously approved Slovenian guarantee scheme and to other financial institutions. The Slovenian state will provide against remuneration short and medium term non-subordinated debt for a duration of one to a maximum of three years. The overall budget of the previously approved guarantee scheme and the present liquidity scheme is capped at EUR12 billion. Only solvent credit institutions, insurance, reinsurance, and pension companies are allowed to enter the scheme. The Commission decision covers a period of six months, following which Slovenia will either terminate the scheme or renotify its extension to the Commission for further assessment. The scheme contains elements of state aid but foresees safeguards aimed at ensuring that the state intervention is proportionate, limited to what is necessary to stimulate interbank lending and adequate to reach this goal, in accordance with EU state aid rules, as outlined in the Commission's Guidance Communication. In particular, the scheme provides for non-discriminatory access as it will be open to all solvent financial institutions in Slovenia. To benefit from the state loans, participating financial institutions are required to pay a market-oriented fee, in line with recommendations from the European Central Bank. Moreover, beneficiaries will be subject to behavioural commitments to avoid an abusive use of the state support. These include limitations on expansion and marketing and conditions for staff remuneration or bonus payments. In addition, Slovenia committed to notify restructuring or liquidation plans for each beneficiary that defaulted on state loans. Finally, Slovenia will report periodically to the Commission on the implementation of the scheme. In light of these commitments and conditions, the Commission concluded that the scheme would be an adequate means to restore confidence on Slovenian financial markets and to boost interbank lending. The safeguards will ensure that the state support is limited to what is necessary to stabilize the Slovenian financial sector and that negative spill-over effects are minimized. ========= S P A I N ========= AYT GENOVA: S&P Affirms Low-B Ratings on Five Class D Notes ----------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class B notes issued by AyT Genova Hipotecario III, IV, VI, VII, and VIII, and the class C notes issued by AyT Genova Hipotecario VI. At the same time, S&P removed several of these notes from CreditWatch positive, affirmed all the other notes in these transactions, and affirmed all the notes in AyT Genova Hipotecario II, IX, X, and XI. The upgrades reflect the stable transaction performance of the deals, with a low volume of arrears in each pool. There are also sufficient levels of available credit enhancement (provided through subordinated tranches and cash reserves), due to transaction deleveraging, to offset future performance deterioration commensurate with stresses applied at the revised rating levels. Specifically, severe delinquencies in each pool represent less than 0.35% of the outstanding balances, compared with current cash reserves of more than four times that amount. S&P conducted cash flow analyses which ran through a number of scenarios to test the structures' ability to make timely interest payments and an ultimate principal repayment. The rating actions reflect the levels at which the respective tranches passed these rating-specific stress scenarios. The Genova deals are Spanish residential mortgage-backed securities transactions backed by pools of first-ranking mortgages secured over owner-occupied residential properties in Spain. They were originated by the Spanish subsidiary of Barclays Bank PLC and were underwritten to include lower loan-to-value ratios and higher borrower income levels than typically seen. Ratings List Ratings Raised and Removed from Creditwatch Positive AyT Genova Hipotecario VI Fondo de Titulizacion Hipotecaria EUR700 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA- A/Watch Pos C BBB+ BBB/Watch Pos AyT Genova Hipotecario VII Fondo de Titulizacion Hipotecaria EUR1.4 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A+ A/Watch Pos AyT Genova Hipotecario VIII Fondo de Titulizacion Hipotecaria EUR2.1 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A+ A/Watch Pos Ratings Raised AyT Genova Hipotecario III Fondo de Titulizacion Hipotecaria EUR800 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA- A+ AyT Genova Hipotecario IV Fondo de Titulizacion Hipotecaria EUR800 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA- A+ Ratings Affirmed and Removed from Creditwatch Positive AyT Genova Hipotecario VII Fondo de Titulizacion Hipotecaria EUR1.4 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BBB BBB/Watch Pos AyT Genova Hipotecario VIII Fondo de Titulizacion Hipotecaria EUR2.1 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BBB BBB/Watch Pos Ratings Affirmed AyT Genova Hipotecario II Fondo de Titulizacion Hipotecaria EUR800 Million Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A AAA B AA- AyT Genova Hipotecario III Fondo de Titulizacion Hipotecaria EUR800 Million Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A AAA AyT Genova Hipotecario IV Fondo de Titulizacion Hipotecaria EUR800 Million Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A AAA AyT Genova Hipotecario VI Fondo de Titulizacion Hipotecaria EUR700 Million Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA D BB AyT Genova Hipotecario VII Fondo de Titulizacion Hipotecaria EUR1.4 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA AyT Genova Hipotecario VIII Fondo de Titulizacion Hipotecaria EUR2.1 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA D BB AyT Genova Hipotecario IX Fondo de Titulizacion Hipotecaria EUR1 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA B A C BBB+ D BB- AyT Genova Hipotecario X Fondo de Titulizacion Hipotecaria EUR1.05 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA B A C BBB+ D BB- AyT Genova Hipotecario XI Fondo de Titulizacion Hipotecaria EUR1.2 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA B A C BBB+ D BB- FONCAIXA EMPRESAS: Moody's Assigns 'Ca' Rating on Series D Notes ---------------------------------------------------------------- Moody's Investors Service has assigned these definitive ratings to the debt to be issued by FONCAIXA EMPRESAS 1, Fondo de Titulizacion de Activos: -- Aaa to the EUR600.0 million Series A1 notes -- Aaa to the EUR600.0 million Series A2 notes -- Aaa to the EUR600.0 million Series A3 notes -- Aaa to the EUR3,435.0 million Series A4 notes -- Baa3 to the EUR285.0 million Series B notes -- Ba3 to the EUR480.0 million Series C notes -- Ca to the EUR630.0 million Series D notes FONCAIXA EMPRESAS 1, Fondo de Titulizacion de Activos is a securitization of the first draw-down of lines of credit (Cr�dito Abierto) and of standard loans granted mainly to small- and medium-sized enterprises (SME) 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 only previous rating action relates to the assignment of the provisional rating (17 March 2009). 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. ===================== S W I T Z E R L A N D ===================== EMS PRECISIONS: Creditors Have Until March 27 to File Claims ------------------------------------------------------------ Creditors owed money by JSC EMS Precisions are requested to file their proofs of claim by March 27, 2009, to: Roland J. Hubatka Bosch 23 6331 Hunenberg Switzerland The company is currently undergoing liquidation in Hunenberg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 4, 2009. ERICH SENN: Creditors Must File Proofs of Claim by March 27 ----------------------------------------------------------- Creditors owed money by JSC Erich Senn Architekten are requested to file their proofs of claim by March 27, 2009, to: Erich Senn Selbstelenweg 14 2544 Bettlach Switzerland The company is currently undergoing liquidation in Grenchen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 30, 2009. FRECODYN LLC: Deadline to File Proofs of Claim Set March 26 ----------------------------------------------------------- Creditors owed money by LLC Frecodyn are requested to file their proofs of claim by March 26, 2009, to: Frefel Rolf Holzweidstrasse 18 6288 Schongau Switzerland The company is currently undergoing liquidation in Berikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 2, 2009. H. KUSENBERG OPTIK: Creditors Have Until March 27 to File Claims ---------------------------------------------------------------- Creditors owed money by H. Kusenberg Optik are requested to file their proofs of claim by March 27, 2009, to: Oskar W. Zurfluh Mail Box: 1024 8021 Zurich Switzerland The company is currently undergoing liquidation in Thalwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 2, 2009. KULTEC LLC: Claims Filing Period Ends March 26 ---------------------------------------------- Creditors owed money by LLC Kultec are requested to file their proofs of claim by March 26, 2009, to: Rene Senn Holzgasse 32 5242 Birr Switzerland The company is currently undergoing liquidation in Birr. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 22, 2008. LANGUAGE TRAINING: Creditors' Proofs of Claim Due by March 27 ------------------------------------------------------------- Creditors owed money by LLC Language Training Systems are requested to file their proofs of claim by March 27, 2009, to: Dr. Franz Satmer Advocacy Derrer Satmer Hunziker & Baumgartner Dufourstrasse 101 8008 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 2, 2008. PFIFFNER MONTAGEN: March 26 Set as Deadline to File Claims ---------------------------------------------------------- Creditors owed money by LLC Pfiffner Montagen are requested to file their proofs of claim by March 26, 2009, to: C. Pfiffner Mail Box: 54 8573 Siegershausen Switzerland The company is currently undergoing liquidation in Kemmental. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 20, 2003. PHARMAG R&D: Creditors Must File Proofs of Claim by March 26 ------------------------------------------------------------ Creditors owed money by LLC Pharmag R&D are requested to file their proofs of claim by March 26, 2009, to: Fuchshubelstrasse 21 3063 Ittigen Switzerland The company is currently undergoing liquidation in Ittigen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 6, 2009. VIN-WORLD LLC: Deadline to File Proofs of Claim Set March 26 ------------------------------------------------------------ Creditors owed money by LLC Vin-World are requested to file their proofs of claim by March 26, 2009, to: Vinzens-Poltera Marilli Julierstrasse 1c 7454 Rona Switzerland The company is currently undergoing liquidation in Tinizong-Rona. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 4, 2008. WEST-OST LLC: Creditors Have Until March 26 to File Claims ---------------------------------------------------------- Creditors owed money by LLC West-Ost are requested to file their proofs of claim by March 26, 2009, to: Ljubisa Ilic Schaffhauserstrasse 109 8057 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 22, 2009. =========== T U R K E Y =========== GLOBAL YATIRIM: Fitch Lowers Issuer Default Ratings to 'B-' ----------------------------------------------------------- Fitch Ratings has downgraded Turkey's Global Yatirim Holding A.S.'s Long-term foreign and local currency Issuer Default Ratings to 'B-' (B minus) from 'B', respectively, and maintained the ratings on Rating Watch Negative. Fitch has also downgraded the senior unsecured rating of Global's US$100 million 9.25% loan participation notes, maturing in 2012, to 'B-' (B minus) from 'B' and maintained the rating on RWN. The senior unsecured debt has a Recovery Rating of 'RR4'. The downgrades reflect Fitch's concern with the company's continued focus on financial trading and investments which are creating material volatility in its overall earnings profile. This is negatively impacting the group's operating results when Global still faces potential further cash calls from projects under development. The RWN is based on the required legal hurdle related to Global's bid for the long-awaited approval of another project related to Izmir Port, for which Global won the tender. Global expects the closing of the Izmir port project to be some time in 1Q10, depending on the state of global financial markets. The company's operating performance deteriorated further in 9M08 due to operating losses at its finance subsidiary and at the holding level. The financial trading and investments activities remain a major concern and raise questions about the stability of cash flows in 2009 and beyond. Consolidated EBITDA was only TRY10.4 million in 9M08 compared with TRY19.4 million in 9M07 despite stable cash flows from Global's existing port and natural gas distribution businesses, which performed in line with expectations. The Rating Watch Negatives are based on Fitch's concerns about the financial impact of Global's bid for another large project (Baskent Natural Gaz) after its successful bid for Izmir Port in May 2007. According to management, the Baskent Gaz deal is not likely to close under the current circumstances and therefore, Global's financial commitments and liabilities related to this project were terminated by March 14, 2009, the expiration date of the US$50 million bid bond. Fitch understands that the Ankara municipality has asked for Global's winning bid of US$1.61 billion, but that the tender has not received final legal approvals for the transfer of the asset to Global and that a legal dispute between the two parties is likely to prevent finalization before the tender expiry. The anticipated significant cash inflow from the agreed sale of a 95% stake in Yesil Energy to Norway-based Statkraft ('BBB+'/Stable) on March 18, 2009 is a positive rating factor, and has also been factored into Global's ratings. The agency's forecasts anticipate the cash from the asset sale remaining on the company's balance sheet, or being used to reduce leverage, which should result in a consolidated net cash position after the closure of the transaction at H109. However, the RWN remains in place as any cash outflow related to the Izmir port bid or further cash calls from projects under development could lead to a rapid deterioration in Global's short-term liquidity profile. Fitch still considers the execution and legal risks associated with this bid to be substantial at this time. ============= U K R A I N E ============= ATABASKA LLC: Creditors Must File Claims by March 29 ---------------------------------------------------- Creditors of LLC Aldk Group (EDRPOU 35147683) have until March 29, 2009, to submit proofs of claim to: I. Derevianko Insolvency Manager Pravda St. 10-A/2 69037 Zaporozhye Ukraine The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 25/6/09. The Court is located at: The Economic Court of Zaporozhye Shaumian street 4 69001 Zaporozhye Ukraine The Debtor can be reached at: LLC Atabaska Kremlevskaya street 63-A 69041 Zaporozhye Ukraine ALTERNATIVA LLC: Creditors Must File Claims by March 29 ------------------------------------------------------- Creditors of LLC Alternativa (EDRPOU 32060343) have until March 29, 2009, to submit proofs of claim to: LLC Factor Capital Insolvency Manager Telman St. 5 03150 Kiev Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 1/82?. The Court is located at: The Economic Court of Lugansk Great Patriotic War Square 3a 91000 Lugansk Ukraine The Debtor can be reached at: LLC Alternativa Pervomayskaya St. 43 Lisichansk 93120 Lugansk Ukraine BUSINESS MASTER: Creditors Must File Claims by March 29 ------------------------------------------------------- Creditors of LLC Consulting Group Business Master International (EDRPOU 32209359) have until March 29, 2009, to submit proofs of claim to: S. Kuzavov Insolvency Manager Office 125 Obolonsky Avenue 36-a Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 15/70-?. 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 Consulting Group Business Master International Panfilovtsev St. 20 Kiev Ukraine RODOVID BANK: Moody's Cuts Bank Financial Strength Rating to 'E' ---------------------------------------------------------------- Moody's Investors Service has downgraded the bank financial strength rating of Rodovid Bank to E from E+, its long-term local currency and foreign currency bank deposit ratings to Caa2 from B3, and its National Scale Rating to B3.ua from Baa3.ua. The bank's long-term deposit ratings remain on review for possible further downgrade. The rating action is in response to the announcement that the National Bank of Ukraine has taken control of Rodovid Bank following the concerns about the bank's ability to continue its operations as a viable stand-alone entity. The Ukrainian legislation gives the NBU powers such as limiting or prohibiting the disposal of the banks' capital and assets and imposing temporary restrictions on payments to creditors. The NBU has announced a six-month moratorium on all payments to the bank's creditors. The moratorium applies to all liabilities assumed by Rodovod Bank before the moratorium was imposed. In downgrading the BFSR to E from E+, Moody's explains that Rodovid Bank's franchise and the overall credit profile have been significantly impaired following the recently experienced material depletion of its liquid assets and economic capitalization as the bank witnessed substantial deposits outflows and a sharp rise in the level of problem loans. According to Rodovid Bank it has a preliminary agreement with the Ukrainian government to receive a capital injection from the latter and also from a Ukrainian Group, ISTIL (which, together, would more than double the current capital level). On March 18, 2009 the NBU recommended that the Ukrainian government recapitalize Rodovid Bank along with several other local banks that operate under temporary administration together with Rodovid Bank. The review of the ratings will focus on the materialization of the government support plans and the potential impact of these plans on Rodovid Bank's capitalization levels, liquidity position and franchise perspectives. Any failure by Rodovid Bank to obtain liquidity and capital support would substantially increase the likelihood of the bank's liquidation, and therefore would result in further rating downgrades. However, recapitalization would have a positive impact on the bank's financial fundamentals and might put an upward pressure on the banks' current ratings. The previous rating action on Rodovid Bank was implemented on October 6, 2008, when Moody's placed Rodovid Bank's E+ BFSR and B3 deposit and debt ratings on review for possible downgrade. At that time, Moody's also downgraded the bank's national scale rating to Baa3.ua from Baa1.ua. Headquartered in Kiev, Ukraine, Rodovid Bank reported total assets of UAH13.2 billion and total equity of UAH1.4 billion according to Ukrainian Accounting Standards at year-end 2008. SECONDARY WHOLE: Creditors Must File Claims by March 29 ------------------------------------------------------- Creditors of LLC Secondary Whole Sale Resources (EDRPOU 420146604) have until March 29, 2009, to submit proofs of claim to: L. Tcherevaty Insolvency Manager Post Office Box 10296 Gorodetskaya St. 277 79022 Lvov Ukraine The Economic Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 7/164-b. The Court is located at: The Economic Court of Volin Volia Avenue 54 Lutsk Volin Ukraine The Debtor can be reached at: LLC Secondary Whole Sale Resources Kremenetskaya St. 38 Lutsk 43020 Volin Ukraine SLOBOZHANSCHINA AGRICULTURAL: Court Starts Bankruptcy Procedure --------------------------------------------------------------- The Economic Court of Sumy commenced bankruptcy supervision procedure on LLC Slobozhanschina Agricultural Company (EDRPOU 21106487). The Temporary Insolvency Manager is P. Korobko The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40011 Sumy Ukraine The Debtor can be reached at: LLC Slobozhanschina Agricultural Company Gayevsky lane 1A Trostianets 42600 Sumy Ukraine TRADING HOUSE VICTOR: Court Starts Bankruptcy Procedure ------------------------------------------------------- The Economic Court of Vinnitsa commenced bankruptcy supervision procedure on LLC Trading House Victor (EDRPOU 31254966). The Temporary Insolvency Manager is: I. Kireyev Post Office Box 2144 21021 Vinnitsa Ukraine The Court is located at: The Economic Court of Vinnitsa Hmelnitsky Highway 7 21036 Vinnitsa Ukraine The Debtor can be reached at: LLC Trading House Victor Sobornaya St. 52 21050 Vinnitsa Ukraine =========================== U N I T E D K I N G D O M =========================== A.D. FABRICATIONS: Administrator Puts Assets for Sale ----------------------------------------------------- A.D. Fabrications Limited's administrator, John D. Travers of John D. Travers & Company, offers for sale the company's business and assets. For details, contact John Travers at 01384 374000. A.D. Fabrications Limited is a West Midlands-based manufacturer of specialist architectural access network. BRITTEN INVESTMENTS: Appoints Joint Administrators from PwC ----------------------------------------------------------- Mark Charles Batten and David Matthew Hammond of PricewaterhouseCoopers LLP were appointed joint administrators of Britten Investments Ltd.on Feb. 27, 2009. The company can be reached at: Cedar Court 221 Hagley Road Hayley Green Halesowen West Midlands B63 1ED England BRUNTCLIFFE AGGREGATES, ET AL: Call in Administrators ----------------------------------------------------- Nicholas James Dargan and Matthew James Cowlishaw of Deloitte LLP have been appointed administrators to these companies on March 9, 2009: =========================================================== Bruntcliffe Aggregates Plc a holding company ----------------------------------------------------------- Ennstone Plc in the manufacturing and engineering business ----------------------------------------------------------- Ennstone Concrete Products Limited manufactures concrete goods for construction ----------------------------------------------------------- Johnston Management Holdings Limited a holding company ----------------------------------------------------------- Johnston Precast Limited manufactures concrete products =========================================================== The companies' registered office is at: Breedon Hall Breedon on the Hill Derby, DE73 8AN CEVA GROUP: Moody's Downgrades Corporate Family Rating to 'B3' -------------------------------------------------------------- Moody's Investors Service has downgraded CEVA Group plc's Corporate Family Rating and Probability of Default Rating to B3 from B2, the Senior Secured rating to Ba3 from Ba2, the Senior Secured second lien and the Senior Unsecured ratings to Caa1 from B3 and the Senior Subordinated rating to Caa2 from Caa1. At the same time, Moody's has placed the ratings on review for possible further downgrade. The action was prompted by ongoing difficult market conditions in the broader logistic industry and the negative impact on the company's operating performances. "The rating action follows the company's release of FYE December 2008 results that were below Moody's expectation with a reported EBITDA of EUR326 million leading to a preliminary financial leverage, measured as Debt to EBITDA adjusted for operating leases and pensions, of about 7.2x", said Paolo Leschiutta a Moody's Vice President - Senior Analyst and responsible for CEVA. "Moody's recognizes the company's success in growing top line during a challenging year, with revenues up 1% compared to FYE December 2007 (+5% at constant exchange rate), and in maintaining a good control on cash generations; however, market conditions remain difficult and are likely to challenge, in Moody's view, the company's recently lunched cost savings program. In addition, previous CEVA's ratings were based on the assumptions of reduction in financial leverage which did not materialize and this now seems more unlikely given market conditions", continued Mr. Leschiutta. Moody's remains concerned by the likely weak operating performance of the group during 2009 that might result in further rating pressure, therefore ratings were placed under review for further possible downgrade. The ratings review will focus on (i) the company's capability to successfully implement measures aimed at reducing costs, (ii) the development in the logistic industry and the company's ability to continue to grow organically, (iii) the likely financial profile of the company, and (iv) the liquidity profile of the company going forward. The rating review process is likely to conclude within two months and any rating downgrade is likely to be limited to one notch. Downgrades: Issuer: CEVA Group plc -- Probability of Default Rating, Downgraded to B3 from B2 -- Corporate Family Rating, Downgraded to B3 from B2 -- Senior Secured Bank Credit Facility, Downgraded to Ba3 (LGD2, 19%) from Ba2, -- Senior Secured Second Lien Notes, Downgraded to Caa1 (LGD5, 73%) from B3, -- Senior Unsecured Regular Bond, Downgraded to Caa1 (LGD5, 73%) from B3, -- Senior Subordinated Regular Bond, Downgraded to Caa2 (LGD6, 95%) from Caa1. Ratings are on review for possible downgrade. The last rating action on CEVA was on November 5, when Moody's changed the outlook to negative following the rating agency's concerns on the potential negative impact on company's profitability due to weakening market conditions. CEVA's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as (i) the business risk and competitive position of the company versus others within its industry, (ii) the capital structure and financial risk of the company, (iii) the projected performance of the company over the near to intermediate term, and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of CEVA's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. CEVA Group plc is the fourth-largest integrated logistic provider in the world in terms of revenues, which at year-end December 2008 stood at approximately EUR6.3 billion with presence in over 100 countries worldwide, employing around 50,000 people and managing in excess of 9.2 million square meters of warehouse facilities. CEVA's activities include the former Contract Logistics business as acquired from TNT N.V. during 2006 together with the Freight Management business of EGL, a US-based company that the group acquired in August 2007. CW8 LTD: Appoints Joint Administrators from BDO Stoy ---------------------------------------------------- C. K. Rayment and Shay Bannon of BDO Stoy Hayward LLP were appointed joint administrators of CW8 Ltd. on March 9, 2009. The company can be reached through BDO Stoy Hayward LLP at: 125 Colmore Row Birmingham B3 3SD England DANKA BUSINESS: Proof of Claim Deadline is April 28 --------------------------------------------------- Creditors of Danka Business Systems Plc, which was placed under voluntary liquidation on Feb. 19, 2009, have until April 28, 2009 to send their proofs of claims to the company's joint liquidators: Simon Spratt and Finbarr Thomas O'Connell KPMG Restructuring 8 Sallisbury Square London EC4Y 8BB GATEWAY TELECOM: Moody's Withdraws 'B3' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service withdrew the B3 Corporate Family and Probability of Default Ratings for Gateway Telecommunications SA (Pty) Ltd. This follows the earlier redemtption of 9.875% Senior Secured notes due 2013, which were issued by its wholly-owned subsidiary, Gateway Telecommunications Plc. The ratings were withdrawn as Gateway finalized a transaction in which it sold its telecommunications business to Vodacom Group (Pty) Ltd. In doing so, the issuer elected to redeem 100% of the above mentioned notes on the redemption date of January 30, 2009. For the assignment of this rating, Moody's evaluated factors Moody's believed were relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the impact of a weakening macroeconomic environment on Gateway, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside the company's core industry subsector and Moody's ratings are believed to be comparable to those of other issuers of a similar credit risk. Prior to this rating action, on September 1, 2008, Moody's placed the B3 Corporate Family Rating of Gateway as well as the US$132.5 million senior secured notes due 2013, rated B3 (issued by its wholly-owned subsidiary, Gateway Telecommunications Plc), under review for possible upgrade. The action followed the announcement on August 29, 2008 by Gateway of the sale of its telecommunications business. Headquartered in London, with its main operations in Belgium, Nigeria and South Africa, Gateway provides voice and data connectivity services between Africa and the rest of the world, and a provider of mobile intra-network connectivity to African wireless operators. For the last twelve month period ended September 30, 2008, the company reported revenue of US$330 million. GLOBAL XPERIENCE: Goes Into Administration ------------------------------------------ Global Xperience, a gap year travel firm, has gone into administration after being hit by the recession, Sky News reports. Sky News relates trade association body Year Out Group, said in a statement: "On March 13 2009 Stephen Katz and David Birne of Fisher Partners were appointed joint administrators of The Ethical Travel Group Limited, which traded as Global Xperience. "As a result of the administration Global Xperience is unable to fulfill its obligations in regard to future bookings with the company." According to Sky News, another travel firm, Real Gap, has purchased the right to run programs originally set up by Global Xperience. Citing the Year Out Group statement, Sky News discloses those that had booked with Global Xperience have until September 12 to submit a claim either to their credit card company or to the Association of British Travel Agents for the monies previously paid to Global Xperience. HBOS PLC: S&P Adjusts Ratings on Perpetual Hybrid Instruments ------------------------------------------------------------- Standard & Poor's Ratings Services adjusted its ratings on an issue of perpetual deferrable hybrid capital instruments by HBOS PLC (A/Stable/A-1), a nonoperating holding company in Lloyds Banking Group PLC (A/Stable/A-1). On March 6, 2009, the ratings on the Instruments had been lowered to 'BB+'. Under S&P's criteria, however, debt issued by a nonoperating holding company is typically rated one notch below equivalent debt issued by an operating banking entity within the group. Under this approach, the ratings on the Instruments should have been posted as 'BB', as they are issued by a nonoperating holding company. This release adjusts the ratings on the Instruments to their appropriate level. The ratings on the Instruments remain on CreditWatch with negative implications. Ratings List GBP750 mil variable rate callable fxd/fltg perp hybrid To From -- ---- B/Watch Neg BB+/Watch Neg HUDSON AND MIDDLETON: Taps Joint Administrators from KPMG --------------------------------------------------------- Richard James Philpott and Allan Watson Graham of KPMG LLP were appointed joint administrators of Hudson and Middleton Ltd. on Jan. 20, 2009. The company can be reached at: Hudson and Middleton Ltd. Etruria Stoke On Trent Staffordshire England LFE MATERIAL: Administrators Put Business for Sale -------------------------------------------------- LFE Material Handling Limited's joint administrators, Beverley Marsh and Geoffrey Rowly, offer for sale the company's business and assets. The company designs, manufactures and supplies bespoke containers. For further information, contact Raman Sandher at 0121 710 1680. MCCARTHY & STONE: Creditors' Meeting Scheduled on April 17 ---------------------------------------------------------- McCarthy & Stone (Developments) Limited ("Developments") and McCarthy & Stone plc ("plc") will convene a meeting of creditors on April 17, 2009, at the offices of the companies' solicitors: Freshfields Bruckhaus Deringer 65 Fleet Street London, EC4Y 1HS Each creditor group are expected to attend at their designated time: Plc Hedge Counterparty Creditors 9:30 a.m. Developments Hedge Counterparty Creditors 9:45 a.m. Plc Senior A, B and C Creditors 10:00 a.m. Developments Senior A, B and C Creditors 10:15 a.m. Plc Senior D Creditors 10:30 a.m. Developments Senior D Creditors 10:45 a.m. SPRING LTD. Appoints Joint Administrators from PwC -------------------------------------------------- Mark Charles Batten and David Matthew Hammond of PricewaterhouseCoopers LLP were appointed joint administrators of Spring Ltd. on Feb. 27, 2009. The company can be reached at: Cedar Court 221 Hagley Road Hayley Green Halesowen West Midlands B63 1ED England SPRING RESIDENTIAL: Names Joint Administrators from PwC ------------------------------------------------------- Mark Charles Batten and David Matthew Hammond of PricewaterhouseCoopers LLP were appointed joint administrators of Spring Residential on Feb. 27, 2009. The company can be reached at: Cedar Court 221 Hagley Road Hayley Green Halesowen West Midlands B63 1ED England WEAVERING MACRO: Goes Into Liquidation; PwC Appointed ----------------------------------------------------- Insolvency practitioners from PricewaterhouseCoopers have been appointed as liquidators of Weavering Macro Fixed Income Fund Limited, a hedge fund specializing in fixed income investments. This follows the announcement by the Fund on March 11, 2009 of its decision to suspend redemptions and an investigation into a large interest rate swap position with a company controlled by a related party. According to Bloomberg News' Tom Cahill, the company is controlled by the fund's manager, Magnus Peterson. Bloomberg News relates Mr. Peterson, through a spokeswoman, said the swap counterparty was a British Virgin Islands-based fund called Weavering Capital Fund Ltd., which had been set up in 1998 by Mr. Peterson and Weavering Chief Economist James Stewart. In an e-mailed statement obtained by Bloomberg News, PwC said the company "lacked the value to support the swaps". Matthew Wilde, partner and head of PwC's Hedge Fund restructuring team, said: "Over the period since early November 2008, the Fund had received redemption requests exceeding US$223 million but could only meet US$90 million of these. With a further wave of provisional redemptions of up to US$65 million in the pipeline, the directors of the Fund called us in to look at the options. "The resolution to wind-up the Fund was made after a brief review concluded that its balance sheet value, most recently US$506 million, was almost entirely dependent on the value of a series of interest rate swaps, totalling US$637 million, which had been struck with a company which was revealed to be a related to the Fund manager and that lacked the value necessary to support the swaps. This left the Fund with no reasonable prospect of paying its debts and no option but to request that liquidators be appointed". A voluntary liquidation of a Cayman registered company is a process governed by statute and Cayman law requires that where a company is insolvent, or of doubtful solvency, the liquidation process must be supervised by the Court. The liquidators role includes: 1) Establishing independent control over the company and take control of all assets 2) Opening a full and regular communication process with creditors and shareholders 3) Establishing a stable base from which to maximize realization from the assets 4) Investigating the circumstances which led to the current financial position of the Company 5) Considering all the options available to maximize return for creditors and investors Mr. Wilde continued: "It appears likely that there will be a very substantial shortfall to the Fund's creditors and its remaining shareholder investors may be left with little. It is clear that there is much to be understood about the circumstances of these trades and creditors and shareholders will soon be advised of details of a meeting of creditors to which the liquidators will report their findings". "Early Meeting" Bloomberg News recalls on Friday, Britain's Serious Fraud Ofice asked PwC for an "early meeting" on the fund's collapse. Reuters discloses a PwC spokeswoman said the liquidators would co- operate with the SFO's request but that no talks had yet been held. WREKIN CONSTRUCTION: Administrators Put Assets for Sale ------------------------------------------------------- Wrekin Construction Company Limited and Wrekin Group Plc's joint administrators, Ian Best and Tom Lukic, offer the companies' business and assets for sale. The companies operate a construction business in Shropshire. For details, contact: Stuart Leonard Ernst & Young LLP No. 1 Colmore Square Birmingham, B4 6HQ Tel: 0121 535 2250 * UK: Business Failures to Increase to 36,000 in 2009, BDO Says --------------------------------------------------------------- The number of UK businesses that are expected to fail in 2009 will increase to 36,000 (one in every 56 businesses), according to the latest Industry Watch report by accountants and business advisors, BDO Stoy Hayward LLP. The report forecasts that as the UK economy contracts at its fastest rate since the Second World War, the number of business failures will increase by 59 per cent by the end of this year from the 22,600 (one in 87) businesses that actually failed in 2008. But the worst is yet to come according to the report. It details that 39,000 or one in 50 of all UK businesses, are predicted to fail in 2010 as the intensifying recession takes it toll. While all sectors will suffer from a rise in business failures, those in Construction and Real Estate will bear the brunt the most from the effects of the economic downturn. The report reveals that 3.2 per of all businesses in the Construction and Real Estate sector (or 10,300 businesses) are predicted to fail. This is followed by Manufacturing where 2.3 per cent of business in the sector (or 2,300 businesses) are predicted to go to the wall. The slowdown in consumer spending and corporate demand, coupled with shattered business confidence has played a huge part in the number of predicted failures this year. According to the report, investments are forecast to fall by 15.6 per cent in 2009 and consumer spending is likely to be 1.8 per cent lower than in 2009 leading to an overall contraction of the United Kingdom economy of 2.9 per cent this year. Shay Bannon, Head of Business Restructuring at BDO Stoy Hayward commented: "The deteriorating economy and expectations of a drawn- out recession has led to a downward revision in the UK outlook and has severely impacted the survival rate of UK businesses." "Business failures are set to worsen before any improvement is seen. UK companies however are tightening their belts and taking more measures to adapt to the downturn. The Government is also increasing its initiatives to kick start the economy and both should have an effect on a glimmer of light eventually being seen at the end of a very long tunnel. However, because of the uncertainty among businesses on how long it will take for an upturn to emerge and lead to a more positive impact on their business, for some, surviving tomorrow, will not be possible." About BDO Stoy Hayward LLP BDO Stoy Hayward LLP -- http://www.bdo.uk.com/-- operates across the UK with over 3,000 partners and staff. BDO Stoy Hayward LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO international is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands, with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. In the UK the Belfast Firm is operated by a separate Partnership known as BDO Stoy Hayward � Belfast. * UK: IMF Says Recession to Last Until 2010 ------------------------------------------- BBC News reports that the International Monetary warned the UK will be the only member of the G7 group of leading industrial countries that will continue to see its economy contract in 2010. BBC relates the IMF said the UK economy will shrink 3.8% this year and 0.2% in 2010. * EUROPE: Fitch Downgrades Ratings on 78 Tranches from 38 SF CDOs ----------------------------------------------------------------- Fitch Ratings has downgraded 78 tranches (69 public ratings and nine private ratings) and affirmed 18 tranches (all public) from 38 structured finance collateralized debt obligations in Europe. In addition, Fitch has assigned Recovery Ratings to the notes. All of the transactions affected by the rating action were previously downgraded to 'B' and below during 2008 following actual and expected deterioration in portfolio credit quality, primarily related to US Alt-A and subprime RMBS. The actions announced reflect the continued deterioration in portfolio credit quality, particularly in relation to defaulted assets and assets rated 'CCC' or below. Fitch analyzed the current available credit enhancement for each tranche in relation to asset buckets rated 'C', 'CC' and 'CCC'. In most cases the existing 'C' buckets would exceed the available credit enhancement of the notes, and hence have resulted in the majority of actions being downgrades to the 'C' rating category. In most cases Fitch has also assigned Recovery Ratings of 'RR6', reflecting the expectation that the tranches may continue to receive interest payments for a limited time before credit events in the portfolios are called and settled, at which time it is likely that as most tranches are comparatively thin the balance of the notes would be completely written down. * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (110) 174 (168) Sky Europe (4) 213 (54) BELGIUM ------- Sabena S.A. (85) 2,215 (279) CYPRUS ------ Allbury Travel (5) 275 (100) Libra Holidays (5) 275 (100) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (59) Setuza A.S. (61) 139 (62) DENMARK ------- Elite Shipping (28) 101 3 Roskilde Bank (533) 7,877 N.A. FRANCE ------ BSN Glasspack (101) 1,151 159 Grande Paroisse S.A. (927) 629 347 Immob Hoteliere (67) 301 (17) Lab Dosilos (28) 110 (44) Matussiere et Forest S.A MTF (78) 294 (38) Pagesjaunes GRP PAJ (3,023) 1,377 (453) Rhodia SA (342) 6,507 712 SDR Centrest (132) (252) N.A. Selcodis S.A. SPVX (21) 141 (36) Trouvay Cauvin (0) 134 9 GERMANY ------- Alno AG ANO (21) 340 (88) Brokat AG (27) 144 109 CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (47) Dortmunder Actien-Brauerei DABG (13) 118 (27) EECH Group AG 0 109 57 EM.TV AG EV4G.BE (22) 849 19 Kaufring AG KAUG (19) 151 (48) Kunert AG (28) 102 29 Maternus Kliniken AG MAK.F (17) 182 (99) Nordsee AG (8) 195 (14) P & T Technology 0 109 57 Primacom AG PRC (14) 730 (68) Rinol AG 0 168 (6) Sander AG (6) 128 32 Sinnleffers AG (4) 454 (182) Spar Handels- AG SPAG (442) 1,433 (294) TA Triumph-Adler TWN (66) 484 (77) Vivanco Gruppe (10) 131 28 GREECE ------ Empedos SA (34) 175 (57) Noussa Spin (11) 450 (107) Petzetakis-PFC PETZP (15) 294 (143) Radio A.Korassidis KORA (101) 181 (165) Commercial Themeliodome (56) 232 (128) United Textiles (11) 450 (107) HUNGARY ------- Brodograde Indus (322) 264 (366) IPK Osijek DD OS (15) 124 (82) OT Optima Teleko (26) 119 7 ICELAND ------- Decode Genetics (187) 111 48 IRELAND ------- Elan Corp PLC ELN (388) 1,599 705 Waterford Wed Ut WTFU (506) 821 364 ITALY ----- Binda S.p.A. BND (11) 129 (23) Cirio Finanziaria S.p.A. (422) 1,583 N.A. Gruppo Coin S.p.A. GC (152) 791 (61) Compagnia Italia ICT (138) 527 (318) Credito Fondiario e Industriale S.p.A. (200) 4,213 N.A. Fullsix (4) 114 (18) I Viaggi del Ventaglio S.p.A. VVE (73) 540 (127) Lazzio S.p.A. (15) 261 (40) Olcese S.p.A. OLCI.MI (13) 180 (80) Parmalat Finanziaria S.p.A. (18,4219) 4,121 (16,919) Snia S.p.A. SN (25) 488 31 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (30) LUXEMBOURG ---------- Carrier1 International S.A. (95) 472 393 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 James Hardie Ind. (238) 2,357 184 United Pan-Euro Air UPC (5,505) 5,113 (9,170) NORWAY ------ Interoil Exploration IOX (25) 210 (11) Petroleum-Geo Services PGO (18) 400 (758) POLAND ------ Toora (289) 147 (86) PORTUGAL -------- Lisgrafica Impressao e Artes Graficas SA LIG (4) 117 (27) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (170) Rafo Onesti RAF (430) 353 (616) RUSSIA ------ Akcionernoe Brd (117) 135 (24) East Siberia Brd VSNK (113) 148 (11) Gukovugol (58) 144 (148) OAO Samaraneftegas (332) 892 (611) Vanadiy-Tula-Brd (12) 105 (3) Vimpel Ship SOVP (116) 135 (24) Zil Auto ZILLP (240) 478 (447) SWITZERLAND ----------- Fortune Management (119) 265 (54) TURKEY ------ Egs Ege Giyim VE (7) 147 (25) Iktisat Financial (46) 108 N.A. Mudurnu Tavukcul (65) 160 (115) Nergis Holding (77) 299 38 Sifas (17) 117 21 Yasarbank (4,025) 2,644 N.A. UKRAINE ------- Dniprooblenergo DNON (51) 433 (200) Donetskoblenergo DOON (367) 631 (469) UNITED KINGDOM -------------- Advance Display (3,016) 2,590 (411) Airtours Plc (379) 1,818 (932) Alldays Plc (120) 252 (290) Amer Bus Sys (497) 121 (497) Amey Plc AMY (49) 932 (76) Anker Plc (22) 115 16 Atkins (WS) Plc ATK (46) 1,345 58 Black & Edgingto (140) 203 23 BNB Recruitment (10) 104 38 Booker Plc BKRUY (60) 1,298 (13) Bradstock Group BDK (2) 269 7 British Energy Ltd (5,823) 4,921 534 British Energy Plc BGY (5,823) 4,921 534 British Sky Broadcast (334) 8,126 (388) Carlisle Group (12) 204 30 Compass Group CPG (668) 2,972 (440) Danka Bus (497) 121 (497) Dawson Holdings (18) 226 (63) Dignity Plc DTY (9) 648 71 E-II Holdings (199) 651 149 Easynet Group ESY.L (45) 323 68 Electrical and Music Industries Group EMI (2,266) 2,950 (582) European Home (14) 111 (70) Farepak Plc (14) 111 (70) Gartland Whalley (11) 145 (13) Hilton Food Group (21) 256 (12) Kleeneze Plc (14) 111 (70) Ladbrokes Plc LAD (814) 2,403 (706) Lambert Fenchurch Group (1) 1,827 5 Leeds United (73) 144 (48) M 2003 Plc (2,204) 7,204 (1,078) Mytravel Group MT.L (380) 1,818 (931) New Star Asset (398) 293 21 Next Plc (119) 3,161 (125) Orange Plc ORNGF (594) 2,902 12 Orbis Plc (4) 128 (5) Patientline Plc (55) 125 (10) Preedy Alfred (119) 3,161 (125) Rank Group Plc (132) 1,066 (175) Regus Plc (46) 367 (97) Rentokil Initial (8) 4,178 (886) Saatchi & Saatchi SSI (119) 705 (66) Samsonite Corp. (199) 651 (149) SFI Group SUF (108) 178 (265) Skyepharma Plc SKP (140) 203 23 Smiths News Plc (124) 201 (92) Styles & Wood (57) 107 (9) Telewest Communications Plc TLWT (3,702) 7,581 (10,042) Thorn Emi Plc (2,266) 2,950 (582) Topps Tiles Plc (111) 195 18 Trio Finance (14) 592 N.A. UTC Group (12) 204 30 Virgin Mobile (392) 166 (176) Watson & Philip (120) 252 (290) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. 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