/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090327.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 Friday, March 27, 2009, Vol. 10, No. 61 Headlines A U S T R I A INSTALLATIONS TECHNIK: Claims Registration Period Ends April 10 INTEC AUTOMATION: Claims Registration Period Ends April 8 PROBAD SANITAR: Claims Registration Period Ends April 20 TTR LLC: Claims Registration Period Ends April 3 D E N M A R K FIH ERHVERVSBANK: Moody's Cuts Financial Strength Rating to 'D+' G E R M A N Y ESA CARGO: Claims Registration Period Ends April 30 GASTRONOMIE UND BEWIRTUNGS: Claims Registration Ends May 15 HOCHBAUFUCHS GMBH: Claims Registration Period Ends April 22 OBJECT.CHAIR GMBH: Claims Registration Period Ends May 8 SOESTER ITS: Claims Registration Period Ends April 29 I C E L A N D SPRON: Gets Offers from Five Financial Companies K A Z A K H S T A N ALLIANCE BANK: Fitch Junks LT Issuer Default Rating from 'B' CITY STROY K: Creditors Must File Claims by May 1 CSI KAZAKHSTAN: Creditors Must File Claims by May 1 ELDORADO TOUR: Creditors Must File Claims by May 1 ELECTRO-TECHNOPLUS LLP: Creditors Must File Claims by May 1 JAR ASIA: Creditors Must File Claims by May 1 KUMIS BULAK: Creditors Must File Claims by May 1 LESTO PROM: Creditors Must File Claims by May 1 PROM ELECTRO: Creditors Must File Claims by May 1 TEPLO CENTRE-UG: Creditors Must File Claims by May 1 K Y R G Y Z S T A N BISHKEK ENERGO: Creditors Must File Claims by April 3 R O M A N I A * Fitch Comments on Romania's Proposed IMF Facility R U S S I A BRASOVSKIY MACHINE: Creditors Must File Claims by May 13 AGIDEL-STROY-SERVIS LLC: Creditors Must File Claims by April 13 CAT OIL: S&P Affirms Corporate Credit Ratings at 'B+' DOMODEDOVSKIE AIRLINES: Moscow Bankruptcy Hearing Set May 5 FAR EASTERN: Moody's Downgrades Corporate Family Rating to 'B3' FINANCE LEASING: United Aircraft to Help Repay Bondholders KADYYSKIY METAL: Creditors Must File Claims by April 13 KOVROVETS OJSC: Court Names D.Gryaznov as Insolvency Manager LESKO LLC: Creditors Must File Claims by April 13 LESNOE LLC: Creditors Must File Claims by May 13 NERUDNIK LLC: Creditors Must File Claims by April 13 SOCHI-DOMO-STROY LLC: Creditors Must File Claims by April 13 STROY-INVEST LLC: Creditors Must File Claims by April 13 VIMPELCOM: Court Rejects Telenor Appeal in Farimex Case Ruling * TOMSK OBLAST: S&P Affirms 'B-' Long-Term Issuer Credit Rating S W E D E N FORD MOTOR: In Talks With Volvo Prospective Buyers S W I T Z E R L A N D CAMENZIND CHEMIE: Creditors Must File Claims by March 30 GTI HOLDING: Deadline to File Proofs of Claim Set March 30 INNOVATIVE SOFTWARE: Claims Filing Period Ends March 30 LICO LLC: Proof of Claim Filing Deadline is March 30 MOVIS PRECARE: Creditors' Proofs of Claim Due by March 30 SPEEDY FINANZ: March 30 Set as Deadline to File Claims TC RADIOLOGIE-DIENST: Creditors Must File Claims by March 30 T U R K E Y * Fitch Says Turkish Corporates Face Increased Refinancing Risk U K R A I N E ASSET INVESTMENT: Creditors Must File Claims by April 10 HOTEL-APARTMENT COMPLEX: Court Starts Bankruptcy Procedure KREDITPROMBANK: Fitch Affirms Individual Rating at 'E' NADVORNAYA MOTORCAR: Creditors Must File Claims by April 10 NAFTOGAZ NJSC: Fitch Comments on Gas System Investment and Reform QUANTA-FORUM LLC: Creditors Must File Claims by April 10 SVITANOK AGRICULTURAL: Creditors Must File Claims by April 10 UKRAINIAN-MOLDAVIAN ENTERPRISE: Court Starts Bankruptcy Hearing UKRAINIAN-ISRAELI LLC: Creditors Must File Claims by April 10 U N I T E D K I N G D O M ALLIED CARPETS: Acquired by Sigma Capital Investments CRAUFURD TECHNOLOGY: Appoints Joint Administrators from Tenon EMCC SOFTWARE: Taps Joint Administrators from BDO Stoy Hayward FORD MOTOR: To Increase UK Prices on Weak Pound JJB SPORTS: Dave Whelan Buys Fitness Club Business for GBP83.4MM J S BRAMLEY: Appoints Joint Administrators from PwC LFE MATERIALS: In Administration; Vantis Appointed MARTIN KLEISER: Brings in Joint Administrators from Tenon Recovery NJW DEVELOPMENTS: Taps Joint Administrators from BDO Stoy RILEYS: In Administration; Sold to Valiant Sports SAFETY QUEST: Wound-Up by High Court TREBORTH GARDEN: Goes Into Administration U P M MACHINERY: Appoints Administrators from Tenon Recovery WIDNEY PRESSINGS: Calls in Joint Administrators from BDO Stoy WINTON RETIREMENT: Taps Joint Administrators from BDO Stoy * UK: Prospects for Retail Sector Remain Tough, Begbies Says * EUROPE: Fitch Takes Rating Actions on Five Public Automakers * BOOK REVIEW: Financial Planning for High Net Worth Individual ********* ============= A U S T R I A ============= INSTALLATIONS TECHNIK: Claims Registration Period Ends April 10 --------------------------------------------------------------- Creditors owed money by LLC Installations Technik (FN 170676w) have until April 10, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Peter Planer Klostergasse 1 Villa Margit 6370 Kitzbuehel Austria Tel: 05356/66883 Fax: 05356/668844 E-mail: p.planer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on April 24, 2009, for the examination of claims at: Land Court of Innsbruck (818) Room N214 Innsbruck Austria Headquartered in Ellmau, Austria, the Debtor declared bankruptcy on Feb. 5, 2009, (Bankr. Case No. 9 S 3/09d). INTEC AUTOMATION: Claims Registration Period Ends April 8 --------------------------------------------------------- Creditors owed money by LLC Intec Automation (FN 109248i) have until April 8, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Klemens Dallinger Schulerstrasse 18 1010 Vienna Austria Tel: 513 28 33 Fax: 513 28 33 22 E-mail: dallinger@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 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. 3, 2009, (Bankr. Case No. 2 S 14/09k). PROBAD SANITAR: Claims Registration Period Ends April 20 -------------------------------------------------------- Creditors owed money by LLC Probad Sanitar (FN 250076i) have until April 20, 2009, to file written proofs of claim to the court- appointed estate administrator: MChristoph Doppelbauer, Vogelweiderstrasse 9 4600 Wells Austria Tel: 07242/351300 Fax: 07242/351300-389 E-mail: anwalt@dop.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 p.m. on April 30, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Feb. 10, 2009, (Bankr. Case No. 20 S 21/09b). TTR LLC: Claims Registration Period Ends April 3 ------------------------------------------------ Creditors owed money by LLC TTR (FN 291825f) have until April 3, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Philipp Dobner Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: dobner@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on April 17, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 10, 2009, (Bankr. Case No. 28 S 13/09d). ============= D E N M A R K ============= FIH ERHVERVSBANK: Moody's Cuts Financial Strength Rating to 'D+' --------------------------------------------------------------- Moody's Investors Service has downgraded the long-term deposit and senior debt ratings of FIH Erhvervsbank A/S to Baa3 from A2, and its bank financial strength rating to D+ from C. Moody's has also downgraded the bank's short-term deposit and debt ratings to Prime-3 from Prime-1 and its subordinated debt rating to Ba3 from A3. All the bank's ratings, including the Prime-3 short-term rating, remain on review for further possible downgrade. This concludes the review initiated on 9 October 2008. Moody's says that its multi-notch downgrade of the bank's ratings was triggered by a combination of these factors: (i) the reported significant decline in FIH's profitability and asset quality and Moody's expectation of further pressure on the bank's recurring earnings power (arising from reduced revenues and a likely increase in credit costs); (ii) the bank's business model, which relies on business lines, including structured finance and property finance businesses, that are likely to be negatively affected by general market conditions; (iii) the bank's concentration of single borrower exposure and its exposure to properties; and (iv) uncertainties surrounding FIH's future ownership and its impact on the bank's franchise value. FIH's net profit for 2008 was DKK184 million, a decrease of around 80% from its reported net profit of DKK1.1 billion for the full year of 2007. The decline was primarily driven by a significant increase in loan loss provisions and negative market value adjustments. Moody's, however, says that it views positively the bank's announced restructuring, which will involve closing down unprofitable business areas and departments and targets annual cost savings in the region of DKK180 million-DKK200 million, which represents around 20%-23% of the bank's cost base of DKK868 million in 2008. However, Moody's remains concerned about FIH's business model, which continues to exhibit a high reliance on earnings from the more volatile structured finance and property finance business lines. In the current market climate, earnings from such areas are expected to be significantly reduced, even if it is possible to increase lending margins. As noted, FIH continues to display a relatively high credit concentration to the weakened property sector, which accounts for 28% of its loans and guarantees and a significant proportion of its largest exposures. The bank's top 20 exposures represent over 200% of Tier 1 capital and a significant proportion of this exposure is to the property sector. Moody's also notes that FIH's non-performing loans grew over five-fold last year and accounted for 1.6% of gross loans at the end of 2008, in comparison with about 0.3% at the end of 2007. Moody's also understands that the current financial climate has impeded the bank's sale process. As a result, Iceland's Kaupthing Bank remains the majority shareholder of FIH. However, Kaupthing's shares in FIH have been pledged as collateral with the Icelandic central bank. In the rating agency's view, uncertainties surrounding FIH's future ownership are likely to negatively affect the bank's business franchise. Moody's acknowledges that the Danish guarantee scheme put in place in October 2008 has been helpful in terms of restoring FIH's liquidity profile, which displays a high concentration in market funding. However, the maturity profile of new market funding is generally limited to the period of the guarantee scheme, which ends on September 30, 2010. On December 18, 2008, Moody's assigned backed Aaa ratings to the existing long-term senior unsecured debt securities of FIH that mature on or prior to September 30, 2010. Under the second government package announced in January 2009, the state guarantee can be used for maturities of up to three years and loans maturing at the latest on December 31, 2013. Moody's downgrade of FIH's subordinated debt ratings reflects the increased probability of principal writedowns as the stand-alone creditworthiness of the bank has weakened. Given the high loss severity of a principal writedown, the incremental expected loss has increased, although the overall probability of such an event remains low, in the rating agency's view. Moreover, the rating action was also prompted by the expectation that systemic support would not extend to these instruments in the event of financial distress. Moody's says that the ratings remain on review for further possible downgrade, given that the bank's credit quality may continue to deteriorate further, especially considering the adverse developments in the property sector in Denmark. Moody's is now also concerned about the bank's profitability. As FIH is a pure corporate bank, its earnings from the structured finance and property finance businesses and also from its core corporate banking business are likely to be negatively affected by the market slowdown. Moody's therefore believes that FIH's profitability will continue to face increasing challenges, which could weigh on its solvency measures. Moody's last rating action on FIH was on October 9, 2008, when its BFSR was downgraded to C from C+ and its long-term debt and deposit ratings were downgraded to A2 from A1. All of the bank's ratings were placed on review for possible further downgrade. Based in Copenhagen, Denmark, FIH reported total assets of DKK122 billion (EUR16.4 billion) at the end of 2008. ============= G E R M A N Y ============= ESA CARGO: Claims Registration Period Ends April 30 --------------------------------------------------- Creditors of ESA Cargo Consult GmbH have until April 30, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on May 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 Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund 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: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany 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: ESA Cargo Consult GmbH Attn: Michael Strauch, Manager Ringstr. 29 44575 Castrop-Rauxel Germany GASTRONOMIE UND BEWIRTUNGS: Claims Registration Ends May 15 ----------------------------------------------------------- Creditors of Gastronomie und Bewirtungs GmbH have until May 15, 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 5, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Am Schlossgarten 4 38518 Gifhorn 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: Silvio Hoefer Bernwardstrasse 11 31134 Hildesheim Germany Tel: 05121/749740 Fax: 05121/7497417 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: Gastronomie und Bewirtungs GmbH Dorfstrasse 112 31275 Lehrte Germany Attn: Sascha Fuhrberg, Manager Heinrich-wilhelm-Kopf-Str. 1 c 31226 Peine Germany HOCHBAUFUCHS GMBH: Claims Registration Period Ends April 22 ----------------------------------------------------------- Creditors of Hochbaufuchs GmbH have until April 22, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 3, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Markus M. Merbecks Koenigstrasse 9 01097 Dresden Germany E-mail: www.handschumacher.de The court opened bankruptcy proceedings against the company on March 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Hochbaufuchs GmbH Alter Schaferweg 37 02625 Bautzen Germany Attn: Holger Hempel, Manager Geboren 1962 Alter Schaferweg 37 02625 Bautzen Germany OBJECT.CHAIR GMBH: Claims Registration Period Ends May 8 -------------------------------------------------------- Creditors of object.chair 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 5, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hameln Hall 108 Zehnthof 1 31785 Hameln 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: Ruediger Marahrens Gerichtsfach 150 Lilly-Reich-Str. 7 31137 Hildesheim Germany Tel: 05121/697720 The court opened bankruptcy proceedings against the company on March 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: object.chair GmbH Bahnhofstrasse 61 31848 Bad Muender Germany Attn: Maren Fasold, Manager Gaussstrasse 11A 31787 Hameln Germany SOESTER ITS: Claims Registration Period Ends April 29 ----------------------------------------------------- Creditors of Soester ITS Verwaltungs GmbH have until April 29, 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 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 Arnsberg Meeting Room 328 Eichholzstr. 4 59821 Arnsberg 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. Axel Kampmann Goethestr. 24 59755 Arnsberg Germany 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: Soester ITS Verwaltungs GmbH An der Helle 13 59505 Bad Sassendorf Germany Attn: Thomas Jaschke, Manager Elfserstrasse 20 59505 Bad Sassendorf Germany ============= I C E L A N D ============= SPRON: Gets Offers from Five Financial Companies ------------------------------------------------ Iceland Review reports that five financial companies have expressed interest in acquiring SPRON's assets. Iceland Review relates among the companies vying to acquire SPRON's assets are MP Bank and investment bank VBS. Citing Morgunbladid, Iceland Review states all of SPRON's branches will be closed. The closure, Iceland Review says, will result in the loss of nearly 300 jobs. Iceland Review discloses according to Morgunbladid, MP Bank's chairman, Margeir Petursson, is interested in taking over part of SPRON's operations, including its subsidiary Netbankinn, nb.is. Iceland Review notes VBS has also expressed interest in Netbankinn as well as in part of SPRON's branch network. The deadline to submit offers for SPRON's assets and operations expired Tuesday, March 24, Iceland Review recounts. On March 24, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported the Icelandic Financial Services Authority has taken over savings banks, Reykjavik Savings Bank (SPRON) and Sparisjodabanki, formerly Icebank. The Icelandic government, as cited by Reuters, 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 disclosed. Sparisjodabankinn, Reuters stated, 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. =================== K A Z A K H S T A N =================== ALLIANCE BANK: Fitch Junks LT Issuer Default Rating from 'B' ------------------------------------------------------------ Fitch Ratings has downgraded Kazakhstan-based Alliance Bank JSC's Long-term Issuer Default Rating to 'CCC' from 'B'. The rating remains on Rating Watch Negative. The downgrade reflects continuing uncertainty in respect to the extent of support which the Kazakh authorities will make available to Alliance and the high risk that the bank will restructure part of its financial obligations. In accordance with Fitch's coercive debt exchange criteria, a CDE is deemed to have occurred if the terms of an entity's financial obligations are materially reduced relative to their original contractual terms, and such a reduction occurs as a result of an exchange which is coercive or de facto necessary, even if technically voluntary. Execution of a CDE will result in an entity being downgraded to 'D' (default) or 'RD' (restricted default). Although the risk of a CDE on Alliance's liabilities is viewed by Fitch as high, the bank is now rated one notch higher than BTA Bank and its subsidiary Temirbank, which were yesterday downgraded to 'CC'. This reflects three factors. Firstly, Alliance has not yet been acquired by the Kazakh authorities, and so any change of control clauses in the bank's borrowings are less likely to have been triggered. This means that the current scope of potential debt acceleration is probably considerably less, and the near-term need for a restructuring of the bank's liabilities may be somewhat less pressing, in Fitch's view. Secondly, the considerably smaller size of the bank relative to BTA means that the scale of state support required by Alliance would probably also be significantly less. Thirdly, Alliance has to date been less overt in its public statements regarding a potential restructuring of its debt. Rating actions are: -- Long-term foreign currency IDR: downgraded to 'CCC' from 'B'; remains on RWN -- Short-term foreign currency IDR: downgraded to 'C' from 'B'; remains on RWN -- Individual rating: affirmed at 'F' -- Support rating: downgraded to '5' from '4'; removed from RWN -- Support Rating Floor: revised to 'No Floor' from 'B'; removed from RWN -- Senior unsecured debt: downgraded to 'CCC' from 'B'; remains on RWN, Recovery Rating at 'RR4' -- Senior unsecured debt issued in Russia: downgraded to 'B-(B minus)(rus)' from 'BBB-(BBB minus) (rus)' (BBB minus (rus)); remains on RWN CITY STROY K: Creditors Must File Claims by May 1 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Construction Company City Stroy K insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro "Shugyla", 6a/28 Kyzylorda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi Str. 29 120014 Kyzylorda Kyzylorda Kazakhstan CSI KAZAKHSTAN: Creditors Must File Claims by May 1 --------------------------------------------------- LLP CSI Kazakhstan has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Auezov Ave. 1-8 Ust-Kamenogorsk East Kazakhstan Kazakhstan ELDORADO TOUR: Creditors Must File Claims by May 1 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Eldorado Tour insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Baitursynov Str. 70 Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan ELECTRO-TECHNOPLUS LLP: Creditors Must File Claims by May 1 ----------------------------------------------------------- LLP Electro-Technoplus has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro "Molodejny", 42 Taldykorgan Almaty Kazakhstan Tel: 8 (72822) 25-21-75 JAR ASIA: Creditors Must File Claims by May 1 --------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Jar Asia Ltd. insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro "Shugyla", 6a/28 Kyzylorda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi Str. 29 120014 Kyzylorda Kyzylorda Kazakhstan KUMIS BULAK: Creditors Must File Claims by May 1 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Kumis Bulak insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan LESTO PROM: Creditors Must File Claims by May 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Lesto Prom insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan PROM ELECTRO: Creditors Must File Claims by May 1 ------------------------------------------------- LLP Prom Electro Stal Kz has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Ryskulov Ave. 52 Almaty Kazakhstan Tel: 8 (7272) 93-73-16 TEPLO CENTRE-UG: Creditors Must File Claims by May 1 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Teplo Centre-UG insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Post Office Box 195 Main Post Office 050000 Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== BISHKEK ENERGO: Creditors Must File Claims by April 3 ----------------------------------------------------- Creditors of LLC Bishkek Energo Complex have until April 3, 2009, to submit proofs of claim to: Orozbekov St. 110a Bishkek Kyrgyzstan ============= R O M A N I A ============= * Fitch Comments on Romania's Proposed IMF Facility --------------------------------------------------- Fitch Ratings said that Romania's proposed IMF facility for a EUR12.95 billion, two-year Stand-By Arrangement, backed by a further EUR7 billion in money from the EU and multilateral institutions, should shore up the country's external finances and reduce the risk of a damaging financial crisis, provided the authorities keep to their policy commitments. Romania is rated Long-term foreign currency Issuer Default 'BB+', local currency IDR 'BBB- (BBB minus)', both with Negative Outlooks, and Short- term foreign currency IDR 'B'. The Country Ceiling is 'BBB'. "Fitch views Romania's proposed IMF programme as supportive for its ratings as it should help to meet the country's sizeable external financing needs and provide a breathing space to rebalance the economy," said Andrew Colquhoun, Director in Fitch's Sovereigns group. "Nevertheless Romania faces a challenging economic and financial outlook and it will be vital for the authorities to keep to the attached policy conditions." Previously rapid growth in domestic and external borrowing has left Romania heavily exposed to ongoing global de-leveraging. Credit to the domestic private sector grew at annual rates of around 60% in 2006 and 2007, funded partly by money from foreign parents which own around 90% of Romania's banking system. Credit growth slowed to 34% in 2008 as the credit crunch raised the cost of funds for foreign parents and diminished investor risk appetite. Net external debt rose to a projected 29% of GDP by end-2008 ('BB' range median: 3%), from just 7% at end-2005. The current account deficit was 12.2% of GDP in 2008, as strong credit growth fuelled domestic demand and drew in imports. Fitch projects Romania's gross external financing requirement, not including short-term debt, at US$27 billion for 2009, or US$59 billion including short-term debt, against reserves of US$36.4 billion by end-January 2009. Pressure on the external finances amid diminished international investor risk appetite has driven a 21% depreciation of the RON since end-August 2008. Currency volatility poses risks for the banking system, as around 50% of system loans are denominated in foreign currency. The impact of financial market turbulence is being reinforced by a slowdown in Romania's key trade and investment partners in the euro zone. Expectations for euro zone 2009 GDP growth have been revised down sharply since Fitch downgraded Romania to 'BB+' in November 2008. Romania's growth slowed to 2.9% yoy in Q408, from 9.2% in Q308; Fitch expects Romania's economy will contract by 4.5% in 2009. Slowing growth will directly affect the fiscal finances and make it difficult to narrow the fiscal deficit from 4.8% of GDP in 2008. However, the ratings continue to benefit from low general government debt of just 20% of GDP by end-2008, while a lack of sovereign eurobond maturities in 2009 reduces refinancing risk this year. Even if an IMF program is agreed, implementation and execution risk will be significant. Romania's politicians may find it difficult to implement tough stability-oriented policies as the economy contracts for the first time in a decade, while presidential elections later in the year could increase pressure for populist policies. =========== R U S S I A =========== BRASOVSKIY MACHINE: Creditors Must File Claims by May 13 -------------------------------------------------------- Creditors of LLC Brasovskiy Machine-Building Plant (TIN 3206003635, PSRN 1023202538534) have until May 13, 2009, to submit proofs of claims to: S. Nefedov Insolvency Manager Kalinina St. 119 241050 Bryansk Russia The Arbitration Court of Bryanskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09�4614/200A. The Debtor can be reached at: LLC Brasovskiy Machine-Building Plant Sovetskaya St. 2 Lokot' Brasovskiy 242300 Bryanskaya Russia AGIDEL-STROY-SERVIS LLC: Creditors Must File Claims by April 13 --------------------------------------------------------------- Creditors of LLC Agidel-Stroy-Servis (TIN 0277068182, PSRN 1050204441528) (Construction) have until April 13, 2009, to submit proofs of claims to: R. Urazbakhin Temporary Insolvency Manager Office 511 Ryazanskaya St. 450071 Ufa Russia The Arbitration Court of Bashkortostan will convene at 2:00 p.m. on Aug. 24, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A07�19045/2008. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolutsii St. 63a 450056 Ufa Bashkortostan Russia The Debtor can be reached at: LLC Agidel-Stroy-Servis Obyazdnaya St.7 Yanaul Bashkortostan Russia CAT OIL: S&P Affirms Corporate Credit Ratings at 'B+' ----------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'B+' long-term and 'B' short-term corporate credit ratings on C.A.T. oil AG, an Austria-registered oilfield services company that conducts all of its operations in the Russian Federation (foreign currency BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia national scale 'ruAAA') and the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3; local currency BBB/Negative/A-3; Kazakhstan national scale 'kzAAA'). At the same time, the 'ruA+' Russia national scale rating was affirmed. The outlook is stable. "The affirmation reflects C.A.T. oil's significant financial flexibility and conservative policies, which should offset, in S&P's view, weakening conditions in the Russian oilfield services (OFS) industry," said Standard & Poor's credit analyst Andrey Nikolaev. The ratings are constrained by worsening conditions in the Russian OFS industry caused by lower hydrocarbon prices, the intrinsic cyclicality and competitiveness of the OFS industry, for which barriers to entry are low; the company's small scale, which limits its pricing power and diversity; and the risks inherent in operating in Russia. These constraints are partly offset by C.A.T. oil's strong niche positions in hydraulic fracturing (hydrofracturing) and sidetracking, which should be more resilient to the current downturn than some other segments of the OFS industry, such as seismic surveys and development drilling, because hydrofracturing and sidetracking mainly support production in existing fields. The ratings are supported by C.A.T. oil's currently low leverage, adequate corporate-governance practices and transparency, moderate financial policy, and adequate liquidity. C.A.T. oil's short-term debt is EUR6, covered by cash reserves of EUR14 million. "The outlook is stable because S&P expects the impact of substantially weaker market conditions to be offset by the company's change in operating strategy and minimal debt," said Mr. Nikolaev. Moreover, S&P believes the company will generate positive FOCF even during the current downturn. Negative rating actions could ensue if C.A.T. oil is unable to benefit from its current competitive advantages due to its modern fleet and solid order book to ensure high capacity utilization throughout 2009, or if customers' stronger bargaining power leads to major working-capital outflow. Abandoning its conservative investment and financial policy to pursue lucrative opportunities in the Russian OFS market could endanger the ratings and outlook. Ratings upside is unlikely in the near term in light of C.A.T. oil's limited diversity and the unfavorable nature of the OFS market. DOMODEDOVSKIE AIRLINES: Moscow Bankruptcy Hearing Set May 5 ----------------------------------------------------------- The Arbitration Court of Moscow will convene at 10.15 a.m. on May 5, 2009, to hear bankruptcy supervision procedure on OJSC Domodedovskie Airlines (TIN 5009025898). The case is docketed under Case No. A41�11373/08. The Temporary Insolvency Manager is: A. Cherkasov Post User Box 10 121165 Moscow Russia The Court is located at: The Arbitration Court of Moscow Hall 440 Prospect A. Sakharova 18 107996 Moscow Russia The Debtor can be reached at: OJSC Domodedovskie Airlines Domodedovo Airport Domodedovskiy 142015 Moskovskaya Russia FAR EASTERN: Moody's Downgrades Corporate Family Rating to 'B3' --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating to B3 from B2 and Probability of Default Rating to Caa1 from B3 of Far Eastern Shipping Company. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, has downgraded FESCO's long-term National Scale Rating to Baa3.ru from A3.ru. The outlook on the ratings is negative. The action concludes the review for possible downgrade initiated on November 13, 2008. "The downgrade to B3 results from Moody's expectation that business conditions are likely to remain weak over the medium term, leading to lower cash flow generated by FESCO than has been previously anticipated and hence to a financial profile more in line with a B3 rating over the intermediate term," said Marco Vetulli, a Vice President-Senior Analyst in Moody's Corporate Finance Group. Furthermore, although Moody's acknowledges FESCO's efforts in refinancing its short-term maturities, the rating agency remains concerned about the execution risk of the company's 2009 refinancing plan. "The tightened nature of the global credit environment adds material uncertainty to the company's refinancing process, while it is also exposed to the weakening in the operating environment, as economic conditions are expected to deteriorate further," Mr. Vetulli explained. FESCO's CFR of B3 is one notch higher than its PDR, reflecting the above-average recovery assumptions for the company in an event of default due to FESCO's strong asset base. The rating also takes into account FESCO's good fundamental franchise in the Russian transportation industry. The negative outlook reflects Moody's expectation that, as 2009 unfolds, challenging macroeconomic conditions will place pressure on FESCO's credit metrics, which will drastically reduce the headroom under the company's financial covenants. The outlook also incorporates the execution risk related to the company's refinancing. The last rating action was implemented on January 20, 2009, when Moody's assigned a B3 PDR to FESCO. Headquartered in Moscow, Russia, FESCO is an integrated logistics group active in four business segments: shipping (16.2% of revenues at H1 2008); liner and logistics operations (45.2%); container terminals (20.2%); and railway transportation (18.3%). FESCO's main shareholder is Industrial Investors Group, which controls 53.81% of the group. Other important shareholders are East Capital (7.62%), European Bank for Reconstruction and Development (3.76%) and Temasek (3.14%). The shares in free float amount to 28%. At HY2008, FESCO reported revenues of US$614 million. FINANCE LEASING: United Aircraft to Help Repay Bondholders ---------------------------------------------------------- OAO United Aircraft Corp. will help its Finance Leasing Co. unit repay US$250 million to bondholders, Bloomberg News' Denis Maternovsky and Ellen Pinchuk report citing Russian Deputy Prime Minister Sergei Ivanov. Bloomberg News relates in a Bloomberg Television interview in his Moscow office on Tuesday Mr. Ivanov said United Aircraft, which holds a 51.8% stake in FLC, must "act somehow to help" because it may face a cross default on its debt. Bloomberg News notes according to Mr. Ivanov, the chairman of United Aircraft's board of directors and a former defense minister, FLC's previous management was responsible for the default and that an investigation is now being held to discover "if that was mismanagement or something worse". As reported in the Troubled Company Reporter-Europe on March 24, 2009, Bloomberg News said FLC 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 disclosed citing Nicolas Genechesi, who holds US$3.7 million of the company's debt. Mr. Genechesi, as cited by Bloomberg News, 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". He also said investors in FLC's defaulted four-year bonds are also considering pushing for early repayment, Bloomberg News added. 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. KADYYSKIY METAL: Creditors Must File Claims by April 13 ------------------------------------------------------- Creditors of LLC Kadyyskiy Metal Construction Plant have until April 13, 2009, to submit proofs of claims to: P. Yuritsin Temporary Insolvency Manager Sovetskaya St. 97/104 156005 Kostroma Russia The Arbitration Court of Vologodskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A13� 8627/2008. The Debtor can be reached at: LLC Kadyyskiy Metal Construction Plant Chapayeva St. 11 Kadyy Kadyyskiy 162510 Vologodskaya Russia KOVROVETS OJSC: Court Names D.Gryaznov as Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Vladimirskaya appointed D.Gryaznov as Insolvency Manager for OJSC Kovrovets (TIN 3305035992, PSRN 1033302200634) (Excavating Machinery Plant). The case is docketed under Case No. A11 -2177/2008-A1 -104B. He can be reached at: Building 1 Planetarnaya St. 29 125167 Moscow Russia The Debtor can be reached at: OJSC Kovrovets Lopatina St. 5 Kovrov Vladimirskaya Russia LESKO LLC: Creditors Must File Claims by April 13 ------------------------------------------------- Creditors of LLC Lesko (TIN 7728156623, PSRN 1027700345804) (Timbered Houses Building) have until April 13, 2009, to submit proofs of claims to: N. Khazhikhanova Insolvency Manager Post User Box 229 344000 Rostov-on-Don Russia The Arbitration Court of Stavropolskiy will convene on Aug. 8, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A63 - 94/09-S5�11. The Court is located at: The Arbitration Court of Stavropolskiy Mira St. 458B Stavropol' Russia The Debtor can be reached at: LLC Lesko Kozlova St. 25 Pyatigorsk Stavropolskiy Russia LESNOE LLC: Creditors Must File Claims by May 13 ------------------------------------------------ Creditors of LLC Lesnoe (TIN 1110003158, APSRN 1051100852802) (Forestry) have until May 13, 2009, to submit proofs of claims to: Ye. Sergeyeva Insolvency Manager Apt. 20 Mikusheva St. 1 167011 Syktyvkar Komi Russia The Arbitration Court of Komi commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A29�5448/2008. The Debtor can be reached at: LLC Lesnoe Oplesnina St. 43a Vizinga Sysol'skiy Komi Russia NERUDNIK LLC: Creditors Must File Claims by April 13 ---------------------------------------------------- Creditors of LLC Nerudnik (TIN 6907006799, PSRN 1026901603453) (Quarry Development) have until April 13, 2009, to submit proofs of claims to: M. Vasilega Temporary Insolvency Manager Post User Box 100 105318 Moscow Russia The Arbitration Court of Tverskaya will convene at 2:30 p.m. on June 8, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A66�186/2009. The Debtor can be reached at: LLC Nerudnik Vypolzovo Bologovskiy 171053 Tverskaya Russia SOCHI-DOMO-STROY LLC: Creditors Must File Claims by April 13 ------------------------------------------------------------ Creditors of LLC Sochi-Domo-Stroy (TIN 232010,4740) (Construction) have until April 13, 2009, to submit proofs of claims to: A. Sakhovskiy Temporary Insolvency Manager Post User Box 88 Central Postal Office 432099 Ulyanovsk Russia The Arbitration Court of Krasnodarskiy will convene at 2:30 p.m. on June 29, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A-32�26918/2008�27/1538B. The Debtor can be reached at: LLC Sochi-Domo-Stroy Olimpiyskaya St. 23 Sochi Krasnodarskiy Russia STROY-INVEST LLC: Creditors Must File Claims by April 13 -------------------------------------------------------- Creditors of LLC Stroy-Invest (TIN 3805208487, PSRN 1023800922980) (Construction) have until April 13, 2009, to submit proofs of claims to: S. Galandin Temporary Insolvency Manager Post User Box 224 664007 Irkutsk Russia The Arbitration Court of Novosibirskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A45� 1430/2009. The Debtor can be reached at: LLC Stroy-Invest Office 14 Pisareva St. 1a 630091 Novosibirsk Russia VIMPELCOM: Court Rejects Telenor Appeal in Farimex Case Ruling -------------------------------------------------------------- The West Siberian District Federal Arbitration Court rejected on Tuesday an appeal by Norway's Telenor to suspend a court ruling to pay US$1.728 billion to Russia's VimpelCom, RIA Novosti reports. RIA Novosti relates Anna Ivanova-Galitsyna, Telenor Russia director for external relations, said "The court did not take our arguments into account and rejected the appeal." In a separate report RIA Novosti discloses Sergie Lavrov, Russia's foreign minister, said on Tuesday a dispute over Telenor's stake in Vimpelcom should be settled by the companies. "It is difficult for us to influence the situation. We are not happy about what is happening," RIA Novosti quoted Minister Lavrov as saying. Jonas Gahr Stoere, Norway's foreign minister, as cited by RIA Novosti, said Russia should provide equal conditions for Russian and foreign companies, and urged stability, predictability and accountability for cell phone players. RIA Novosti notes according to Minister Stoere, this is the responsibility for companies that form joint ventures, and the governments that follow the process and provide conditions for their successful functioning. Farimex Case As reported in the Troubled Company-Reporter Europe on March 6, 2009, Telenor on March 4, 2009, filed a cassation appeal of the decision of the Eighth Appellate Arbitrazh Court in Omsk ordering Telenor to pay US$1.7 billion in connection with the claim made by Farimex Products, Inc. Farimex has alleged that Telenor caused losses to VimpelCom by delaying VimpelCom's acquisition of loss-making Ukrainian mobile operator, Ukrainian Radio Systems (URS), and has demanded the payment to be made. �The Omsk Court's decision contains grave substantive and procedural errors, and we have no intention of paying any claimed damages based on this ruling," said Jan Edvard Thygesen, Executive Vice President and Head of Telenor's Central and Eastern European operations. In its suit, Farimex alleged that Telenor-nominated members of VimpelCom's Board of Directors delayed VimpelCom's 2005 acquisition of URS. Telenor says its Board members opposed the acquisition because URS was over-valued and had no credible business plan, and because there was a lack of transparency in the deal, including no information regarding the identity of the beneficial owners of the sellers of URS. To date, the identity of the beneficial owners of the sellers of URS has not been disclosed. Telnor said at the time of the proposed acquisition, there was a high level of penetration in the Ukrainian market. Based on the multiples used to value comparable assets, URS's US$231.3 million purchase price was too high. This information was openly available to all shareholders at the time of decision by the EGM September 14, 2005. URS was acquired in November 2005. Currently, despite investments made by VimpelCom in excess of US$600 million, URS continues to make losses and, as of December 31, 2008, had only a 4 % market share (source: AC&M Consulting). Seizure of Vimpelcom Stake In a March 12 release Telenor said it heard rumors that a Russian bailiff working with Farimex had arrested Telenor's shares in VimpelCom by serving an arrest order on the National Registry Company, VimpelCom's Moscow share registrar. This was confirmed on March 12. "This is a yet another escalation of the attempts to steal our VimpelCom shares with the aid of Russian courts," said Jan Edvard Thygesen, Executive Vice President and Head of Telenor's Central and East European operations. "It seems clear that the arrest order was served in retaliation for Judge Lynch's decision in New York, and that the arrest of our VimpelCom shares is intended to prevent the enforcement of Judge Lynch's most recent decision. We have not received an original writ of execution, nor have we received any formal notification of the arrest of our VimpelCom shares. Furthermore we have no intention of paying the outrageous US$1.7 billion amage claim awarded by the Omsk court based on what we regard as an illegal court ruling. We have appealed the ruling and will request a stay of enforcement proceedings. If, despite our request for a stay, our investment in VimpelCom is stolen, we would regard this as a criminal act against Telenor and its shareholders," said Mr. Thygesen. The US Federal Court for the Southern District of New York on March 11 granted Telenor's motion requesting that Alfa Group companies Altimo, Alpren, Hardlake and Storm be held in contempt of court for their failure to obey orders of the District Court and US Court of Appeals for the Second Circuit upholding Telenor's arbitration award against Alfa Group subsidiary Storm. The Court found that none of the four Alfa Group companies had complied with the Court's November 19, 2008 order because they failed to deposit Storm's Kyivstar shares with the Court and ordered Alfa to pay fines of US$100,000 per day, beginning on March 12 until they comply with the order, with such amount doubling to US$200,000 per day 30 days thereafter, and to US$400,000 per day 30 days after that, and continuing to double every 30 days until they are no longer in contempt. The Court ordered the four Alfa Group companies to secure the dismissal of the collusive EC Venture litigation in Ukraine by March 23 and imposed escalating fines in similar amounts commencing on March 24 if they fail to comply. The Court again ordered Storm to sell its Kyivstar shares by March 23, unless within that period, Alfa has sold its shares in excess of 5% of Turkcell and Ukrainian High Technologies, with additional fines to be payable in amounts to be determined if they do not comply. The Court also ordered the four Alfa companies to pay Telenor's attorneys' fees and costs incurred in connection with the contempt motion. Telenor holds 29.9 per cent of the voting shares (33.6 per cent of the common shares) in VimpelCom through its subsidiary Telenor East Invest AS. About VimpelCom Headquartered in Moscow, Russia, VimpelCom (NYSE: VIP) -- http://www.vimpelcom.com/-- consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armeniaas well as Vietnam and Cambodia, in territories with a total population of about 340 million. The Group companies provide services under the "Beeline" brand. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on the NYSE under the symbol "VIP". * * * As reported in the Troubled Company Reporter-Europe on Jan. 21, 2009, Standard & Poor's Ratings Services revised its outlook on Russian telecoms operator Vimpel-Communications to negative from stable. At the same time, the 'BB+' long-term corporate credit ratings on VimpelCom, its related entities, and their respective issue ratings were affirmed. * TOMSK OBLAST: S&P Affirms 'B-' Long-Term Issuer Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'B-' long-term issuer credit and 'ruBBB' Russia national scale ratings on Russian Tomsk Oblast and removed them from CreditWatch, following the oblast's progress in arranging refinancing for its debt maturing in March-May 2009, and a policy shift toward a more prudent approach to refinancing and liquidity. The outlook, which was negative before the CreditWatch placement, is negative. The ratings had been placed on CreditWatch with negative implications on Feb. 24, 2009. "The ratings reflect our view of the oblast's short-term debt structure, with debt service of more than 20% of revenues estimated for 2009, and our expectations of continuing tough refinancing conditions for the oblast's debt maturing in 2009- 2010," said Standard & Poor's credit analyst Boris Kopeykin. The ratings are also constrained by S&P's expectations of budgetary deficiencies caused by the weaker performance of the oblast's concentrated economy, which will reduce budget revenues; and its mandated expenditure responsibilities, such as inflexible wages and social assistance-related payments. The ratings are supported by the oblast's commitment to timely debt service and its expected policy shift toward more cautious refinancing of maturing debts, especially the recently announced policy to repay bank loans ahead of maturity dates. Moreover, Tomsk Oblast could receive federal subsidies and budget loans exceeding the amounts currently budgeted. As of March 20, 2009, the oblast had about RUR1.8 billion in cash (almost RUR1.2 billion already committed). The outlook is negative because S&P expects that economic contraction will continue and result in weaker revenue collection for the oblast, while negative market sentiment will keep refinancing risks high. Should the oblast achieve more favorable refinancing terms and decrease its debt service for 2010-2011 to less than 12%-14% and demonstrate its ability to achieve a balanced operating budget in 2010, S&P might revise the outlook to stable. Additional federal support with budget loans enough to meet the refinancing needs in 2009 could also be positive for the ratings. "Weaker revenue collection, with an operating deficit of more than 4%-5%, could lead to a downgrade," said Mr. Kopeykin. In addition, the oblast has yet to clarify its refinancing schemes for its bank and budget loans and bonds due in November-December 2009 totaling more than RUR3 billion. Lack of sufficient cash reserves or a clear and committed refinancing plan at least two or three months ahead of the November-December 2009 repayment deadlines might result in a downgrade of several notches. =========== S W E D E N =========== FORD MOTOR: In Talks With Volvo Prospective Buyers -------------------------------------------------- Ford Motor Co. on Wednesday said it is in detailed talks with prospective buyers for its Swedish unit Volvo, various reports say. According to The Times' Christine Buckley, it is expected that this stage will continue for up to two months before a final shortlist, or even one preferred bidder, is chosen. Citing a person familiar with the matter, Bloomberg News relates discussions are furthest along with China's Geely Automobile Holdings Ltd. Bloomberg News notes the people said Ford has also approached China's Chery Automobile Co. and Chongqing Changan Automobile Co. According to Bloomberg News' Keith Naughton, Ford may get US$1 billion to US$2 billion for its Volvo Cars unit, less than a third of what it paid 10 years ago. Bloomberg News recalls Ford acquired the Swedish automaker for US$6.4 bilion in 1999. Ford, The Times says, is keen to sell Volvo quickly to concentrate on its core blue-badge brands. The sale of the Swedish operation would complete Ford's exit from European brands, the Times states. BBC News discloses Volvo made a loss of US$736 million in the last three months of 2008, while Ford's overall loss for the whole year totaled US$14.6 billion. BBC adds Ford and its Volvo unit have sales and profits fall as the global economy has declined since last summer. Volvo and Saab were granted SEK28 billion (GBP2.3 billion, US$3.5 billion) from the Swedish government in December, BBC recounts. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on March 6, 2009, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Ford Motor Co. to 'CC' from 'CCC+'. S&P also lowered the issue-level ratings on the company's senior secured term loan, senior unsecured debt, and subordinated debt, while leaving the issue-level rating on Ford's senior secured revolving credit facility unchanged. In addition, the counterparty credit ratings and issue-level ratings on Ford Motor Credit Co. (Ford Credit) and FCE Bank PLC remain unchanged. The outlooks on Ford and Ford Credit are negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. ===================== S W I T Z E R L A N D ===================== CAMENZIND CHEMIE: Creditors Must File Claims by March 30 -------------------------------------------------------- Creditors owed money by JSC Camenzind Chemie are requested to file their proofs of claim by March 30, 2009, to: Matthias Camenzind Industriestrasse 22 6301 Zug Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 24, 2008. GTI HOLDING: Deadline to File Proofs of Claim Set March 30 ---------------------------------------------------------- Creditors owed money by LLC GTI Holding are requested to file their proofs of claim by March 30, 2009, to: Company Acton Treuhand Zug Innere Guterstrasse 4 6304 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 11, 2009. INNOVATIVE SOFTWARE: Claims Filing Period Ends March 30 ------------------------------------------------------- Creditors owed money by LLC Innovative Software Partner are requested to file their proofs of claim by March 30, 2009, to: LLC Anita Alther Treuhand Ackerstrasse 27 8266 Steckborn Switzerland The company is currently undergoing liquidation in Steckborn. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 12, 2008. LICO LLC: Proof of Claim Filing Deadline is March 30 ---------------------------------------------------- Creditors owed money by LLC Lico are requested to file their proofs of claim by March 30, 2009, to: Gerhard Schadeli Juraweg 10 3239 Dotzigen Switzerland The company is currently undergoing liquidation in Dotzigen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 12, 2009. MOVIS PRECARE: Creditors' Proofs of Claim Due by March 30 --------------------------------------------------------- Creditors owed money by JSC Movis preCare are requested to file their proofs of claim by March 30, 2009, to: JSC TBO Treuhand Steinstrasse 21 8036 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 23, 2009. SPEEDY FINANZ: March 30 Set as Deadline to File Claims ------------------------------------------------------ Creditors owed money by LLC Speedy Finanz are requested to file their proofs of claim by March 30, 2009, to: Stoffel Remo Gurtelstrasse 14 7001 Chur Switzerland The company is currently undergoing liquidation in Chur. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 26, 2008. TC RADIOLOGIE-DIENST: Creditors Must File Claims by March 30 ------------------------------------------------------------ Creditors owed money by JSC TC Radiologie-Dienst are requested to file their proofs of claim by March 30, 2009, to: Alois Langenegger im Hagen 3 6315 Oberageri Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 3, 2009. =========== T U R K E Y =========== * Fitch Says Turkish Corporates Face Increased Refinancing Risk --------------------------------------------------------------- Fitch Ratings said in a comment that Turkish corporates face increased challenges in refinancing outstanding foreign currency debts with US$26.4 billion of foreign borrowings falling due this year. "The Turkish corporate sector is facing significant challenges in refinancing outstanding foreign currency debts under the combined weight of poor global liquidity, international investor retrenchment from emerging markets, the impact of recession and a weakened lira," said Raymond Hill, Senior Director and Head of Emerging Markets Corporates at Fitch Ratings. While the recent decline in the Turkish lira will in part help defend export volumes and values as expressed in TRL, Fitch believes that corporate revenues and operating cash flows are likely to come under pressure as a result of economic contraction, both within Turkey and in its major export markets. These trends are likely to push up leverage levels and pressure corporate ratings with respect to cash flow generation, leverage and refinancing risk. Companies with significant foreign currency borrowings will experience a heightened degree of deterioration in credit quality. Those Turkish corporates considered by Fitch to have the most material exposures to a depreciating TRL, as reflected in their ratings, include Vestel Elektronik ('B'/Stable), Dogan Yayin Holding ('B+' Negative), Dogus Holding ('BB-'((BB minus))/Stable), Anadolu Efes Biracilik ('BB'/Stable) and Yasar Holding ('B' /Negative), Hurriyet Gazetecilik ('BB-'/Negative), Coca Cola Icecek ('BB'/Stable). ============= U K R A I N E ============= ASSET INVESTMENT: Creditors Must File Claims by April 10 -------------------------------------------------------- Creditors of LLC Asset Investment (EDRPOU 35976127) have until April 10, 2009, to submit proofs of claim to: Post Office Box 72 03115 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. 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 Asset Investment P. Mirny St. 2/44 01011 Kiev Ukraine HOTEL-APARTMENT COMPLEX: Court Starts Bankruptcy Procedure ---------------------------------------------------------- The Economic Court of Odessa commenced bankruptcy supervision procedure on LLC Hotel-Apartment Complex UKRAINE(EDRPOU 34321810). The Temporary Insolvency Manager is: O. Spirkina Office 50 Marshal Zhukov Avenue 85 Odessa Ukraine The Court is located at: The Economic Court of Odessa Shevchenko Avenue 29 65019 Odessa Ukraine The Debtor can be reached at: LLC Hotel-Apartment Complex Ukraine French Boulevard 54/23 Odessa Ukraine KREDITPROMBANK: Fitch Affirms Individual Rating at 'E' ------------------------------------------------------ Fitch Ratings has affirmed Ukraine-based Kreditprombank's ratings and simultaneously withdrawn them. Fitch will no longer provide ratings or analytical coverage on this issuer. Rating actions: -- Long-term IDR: affirmed at 'CCC', Outlook Negative and withdrawn -- Senior unsecured debt: rating of 'CCC'(expected) withdrawn -- Short-term IDR: affirmed at 'C' and withdrawn -- Individual rating: affirmed at 'E' and withdrawn -- Support rating: affirmed at '5' and withdrawn -- Support Rating Floor: affirmed at 'No Floor' and withdrawn -- National Long-term rating: affirmed at 'BB(ukr)', Outlook Negative and withdrawn NADVORNAYA MOTORCAR: Creditors Must File Claims by April 10 ----------------------------------------------------------- Creditors of OJSC Nadvornaya Motorcar Transport Enterprise 12655 (EDRPOU 03117027) have until April 10, 2009, to submit proofs of claim to: V. Lovas Insolvency Manager Office 22 Hetman Mazepa St. 59 76000 Ivano-Frankovsk The Economic Court of Ivano-Frankovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No B-21/59. The Court is located at: The Economic Court of Ivano-Frankovsk Shevchenko St. 16 76000 Ivano-Frankovsk Ukraine The Debtor can be reached at: OJSC Nadvornaya Motorcar Transport Enterprise 12655 Pniv Nadvorniansky 78431 Ivano-Frankovsk Ukraine NAFTOGAZ NJSC: Fitch Comments on Gas System Investment and Reform ----------------------------------------------------------------- Fitch Ratings said that significant investment and reform of NJSC Naftogaz of Ukraine's ('B-'((B minus))/Rating Watch Negative) gas transit system under the aegis of an EU-Ukraine agreement would at best have a neutral credit impact on the company. Proposed changes would increase the transparency, efficiency and stability of Naftogaz's transit operations, but consolidated leverage following a capex expansion could increase significantly and core credit problems such as a mismatch between gas costs and domestic tariffs would remain. On March 23, 2009, the European Commission, Ukraine, the European Investment Bank, EBRD, and the World Bank announced the possibility of multilateral financing for infrastructure renewal of Ukraine's gas transit system, which is owned and operated by Ukrtransgaz, a fully-owned subsidiary of Naftogaz. The EC and the multilateral institutions did not make any commitments to fund a capex programme that Ukraine has estimated at US$5.55 billion, but stated an intention to consider such funding following a due diligence review of Naftogaz's proposed capex projects. Most importantly, a condition for any future funding would be Naftogaz's adherence to the EU's 2003 gas unbundling directive, pursuant to which gas transmission operators must run transparent, open-access, fairly-priced gas systems that are functionally and legally unbundled from network owners. An open access gas transit system operating on the basis of non- discriminatory terms and pricing would greatly increase transparency at Naftogaz, which derived nearly half of its 2007 revenues from gas transit. However, depending on how potential multilateral lending is structured, the impact on Naftogaz's leverage could be so significant as to counter-balance any benefits from gas transit reform, resulting in a deterioration of the company's credit quality. The 2003 EU directive does not require ownership unbundling and Fitch anticipates that a functionally and legally unbundled Ukrtransgaz would remain fully consolidated. New debt-funded capex of US$5.55 billion would increase Naftogaz's total debt over four times from the year-end 2007 level, significantly increasing the company's leverage. Moreover, core credit problems such as inadequate domestic gas tariffs and payments arrears by municipal customers would not be addressed through improvements to the transit system's operation. Fitch does not anticipate any credit impact from prospective investment and restructuring at Ukrtransgaz until 2011. Any concrete changes will depend upon the adoption and implementation of new Ukrainian gas sector legislation, and the presidential elections in 2010 are likely to slow this process. Furthermore, OAO Gazprom ('BBB'/Negative) and Russia's Prime Minister, Vladimir Putin, have expressed disappointment that the EC-Ukraine framework agreement does not contemplate Russian involvement. This suggests some future negotiations with Russian partners will be necessary, which would forestall swift implementation of an investment and reform program at Ukrtransgaz. QUANTA-FORUM LLC: Creditors Must File Claims by April 10 -------------------------------------------------------- Creditors of LLC Quanta-Forum (EDRPOU 35910574) have until April 10, 2009, to submit proofs of claim to: Post Office Box 72 03115 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. 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 Quanta-Forum Nauka Avenue 119-b 03083 Kiev Ukraine SVITANOK AGRICULTURAL: Creditors Must File Claims by April 10 ------------------------------------------------------------- Creditors of Agricultural LLC Svitanok (EDRPOU 13561467) have until April 10, 2009, to submit proofs of claim to: V. Sushkov Insolvency Manager Office 29 Officer St. 12 Zhitomir Ukraine The Economic Court of Zhitomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 4/14-B. The Court is located at: The Economic Court of Zhitomir Putiatinsky Square 3/65 10002 Zhitomir Ukraine The Debtor can be reached at: Agricultural LLC Svitanok Shevchenko St. 8 Stolpov Tchudnov 13214 Zhitomir Ukraine UKRAINIAN-MOLDAVIAN ENTERPRISE: Court Starts Bankruptcy Hearing --------------------------------------------------------------- The Economic Court of Herson commenced bankruptcy supervision procedure on LLC Ukrainian-Moldavian Enterprise Electrical Machine (EDRPOU 31653535). The Temporary Insolvency Manager is: O. Tsirkunova Office 4 Gogol St. 11 73000 Herson Ukraine The Court is located at: The Economic Court of Herson Gorky St. 18 73000 Herson Ukraine The Debtor can be reached at: LLC Ukrainian-Moldavian Enterprise Electrical Machine Ushakov Avenue 72 Herson Ukraine UKRAINIAN-ISRAELI LLC: Creditors Must File Claims by April 10 ------------------------------------------------------------- Creditors of Ukrainian-Israeli LLC With Forein Investments Rubin- Bud (EDRPOU 32616394) have until April 10, 2009, to submit proofs of claim to: J. Sleptsova Insolvency Manager Post Office Box 2144 49034 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No B29/186/04. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: Ukrainian-Israeli LLC with Forein Investments Rubin-Bud Slava boulevard 56/3 49126 Dnepropetrovsk Ukraine =========================== U N I T E D K I N G D O M =========================== ALLIED CARPETS: Acquired by Sigma Capital Investments ----------------------------------------------------- The Independent's James Thompson reports Sigma Capital Investments has acquired Allied Carpets Group for an undisclosed sum. Sigma Capital Investments, which is backed by wealthy US investors, is likely to close some stores, the Independent says. The Independent recalls Allied Carpets' French owner, Tapsi Saint- Maclou, controlled by the Mulliez family, put the carpet retailer up for sale before Christmas, hiring Lazard to handle the process. Citing Retail Knowledge bank, the Independent discloses Allied Carpets has struggled to compete with the market leader Carpetright and has not made an operating profit for the past eight years. According to the Independent, Tapis Saint-Maclou, which acquired Allied Carpets for GBP84.2 million in September 1999, has had to inject GBP15 million of working capital into the business over recent months. The Independent notes more funding was required before the end of this month. Richard Fletcher at Telegraph.co.uk recounts Tapis Saint-Maclou was forced to write off millions of pounds worth of loans after the retailer incurred losses of more than GBP40 million over the past decade. The Independent relates in 2007, Allied Carpet made an operating loss of GBP6.8 million on total sales of GBP206.9 million. Allied Carpets Group -- http://alliedcarpets.co.uk/-- has over 220 stores throughout the UK. CRAUFURD TECHNOLOGY: Appoints Joint Administrators from Tenon ------------------------------------------------------------- S. J. Parker and C. D. Wilson of Tenon Recovery were appointed joint administrators of Craufurd Technology Ltd. on March 13, 2009. The company can be reached at: Craufurd Technology Ltd. 135B Edinburgh Avenue Slough Berkshire SL1 4SW England EMCC SOFTWARE: Taps Joint Administrators from BDO Stoy Hayward -------------------------------------------------------------- Patrick A Lannagan and Dermot Justin Power of BDO Stoy Hayward LLP were appointed joint administrators of EMCC Software Ltd. on March 12, 2009. The company can be reached through BDO Stoy Hayward LLP at: Commercial Buildings 11-15 Cross Street Manchester M2 1BD England FORD MOTOR: To Increase UK Prices on Weak Pound ----------------------------------------------- Ford Motor Co. in a March 24 statement said the continued weakness of the pound against the euro, which this week edged even closer to parity, has forced the company to increase the price of all its models within the UK from the start of April 2009. The price increase, an average of 3.75 per cent, will apply to all new orders received after March 31. "We are reacting to the continued decline of the pound against the euro", said Nigel Sharp, managing director Ford of Britain. "Raising prices in such difficult times may seem counter- intuitive, but as a UK business with so many of our costs priced in euros, we have no choice if we are to protect jobs and remain viable. "The euro has strengthened 30 per cent in the past 18 months," Mr. Sharp added "and 18 per cent in last 12 months alone. The weakness of the pound had a huge negative impact �- well into nine figures -� on Ford's UK business in 2008." He also warned that price-inflationary pressure would continue to be an issue for all UK-based businesses whose costs were incurred in euros until Sterling strengthened. Prices for Ford cars will rise by an average of 3.75 per cent, starting at an extra GBP50 on a Ford Ka and extending to GBP1,000 on a Focus Coupe Cabriolet. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on March 6, 2009, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Ford Motor Co. to 'CC' from 'CCC+'. S&P also lowered the issue-level ratings on the company's senior secured term loan, senior unsecured debt, and subordinated debt, while leaving the issue-level rating on Ford's senior secured revolving credit facility unchanged. In addition, the counterparty credit ratings and issue-level ratings on Ford Motor Credit Co. (Ford Credit) and FCE Bank PLC remain unchanged. The outlooks on Ford and Ford Credit are negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. JJB SPORTS: Dave Whelan Buys Fitness Club Business for GBP83.4MM ---------------------------------------------------------------- JJB Sports plc has sold its fitness club business to the group's founder Dave Whelan for GBP83.4 million (US$121.4 million), Reuters' James Davey and Ben Deighton report. According to the report, JJB said proceeds of the sale will be used to reduce its debt and eventually to fund its working capital requirements. The company, the report discloses, owes about GBP60 million to its lenders, Barclays, Lloyds (formerly HBOS) and Kaupthing Singer & Friedlander . JJB, the report relates, has also secured an agreement from its lenders to extend standstill arrangements on its loans until it can strike a deal with the landlords of its closed stores. The latest extension to its standstill deal with lenders expired on Tuesday, the report notes. JJB, the report states, is proposing a company voluntary arrangement (CVA) to compromise claims of landlords of approximately 140 closed retail stores and temporarily vary the terms of the leases of approximately 250 open retail stores to permit monthly rent payments. JJB, as cited by the report, said all March quarterly rents will be paid in full. Reuters notes analysts estimate the company's March quarterly rents at GBP15 million to GBP20 million. JJB, the report says, will secure a short term GBP25 million term loan with Barclays and a medium term GBP25 million working capital facility with Lloyds if it successfully reach a CVA deal with landlords. The report meanwhile says JJB has fired its Chief Executive Christopher Ronnie while Finance Director David Madeley has resigned. About JJB Sports Headquartered in Wigan, England, JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is engaged in the retailing of sportswear and sporting equipment. The company also operates a chain of fitness clubs, which has a smaller number of indoor soccer centers attached to them. It also operates a television broadcasting and marketing business, which specializes in the marketing of golf products and fitness equipment through Sky Television. J S BRAMLEY: Appoints Joint Administrators from PwC --------------------------------------------------- Nicholas Edward Reed and Ian David Green of PricewaterhouseCoopers LLP were appointed joint administrators of J.S. Bramley (Leeds) Ltd. on March 13, 2009. The company can be reached at: J.S. Bramley (Leeds) Ltd. 5 Cromwell Park York Road Wetherby West Yorkshire LS22 7SU England LFE MATERIALS: In Administration; Vantis Appointed -------------------------------------------------- LFE Materials Handling Limited, the Coventry based designer, manufacturer and supplier of bespoke containers, went into administration on March 17, 2009, with the appointment of Beverley Marsh and Geoff Rowley, Client Partners at Vantis Business Recovery Services (BRS), a division of Vantis, the UK accounting, tax and business advisory group, as joint administrators. The company was forced into administration as a result of a significant bad debt, leading to working capital problems. LFE Materials Handling Limited turns over approximately GBP2 million per annum and employed 29 staff at its base in Coventry. Unfortunately, as a result of severe cash flow pressures, the administrators were forced to make 11 staff redundant on March 18. Commenting on the case, Beverley Marsh said: "To ensure we were able to continue to trade the business, which we are now doing, it was sadly necessary to make a number of redundancies. We are now also carrying out targeted marketing activity to secure a sale of the company. We have received very positive comments from customers and have already had expressions of interest from a number of parties, including the existing management team." MARTIN KLEISER: Brings in Joint Administrators from Tenon Recovery ------------------------------------------------------------------ Gareth W. Roberts and Robert C. Keyes of Tenon Recovery were appointed joint administrators of Martin Kleiser Ltd. on March 11, 2009. The company can be reached at: Martin Kleiser Ltd. 9 London End Beaconsfield Bucks HP9 2HN England NJW DEVELOPMENTS: Taps Joint Administrators from BDO Stoy --------------------------------------------------------- Patrick A Lannagan and Francis Graham Newton of BDO Stoy Hayward LLP were appointed joint administrators of NJW Developments Ltd. on March 12, 2009. The company can be reached through BDO Stoy Hayward LLP at: Commercial Buildings 11-15 Cross Street Manchester M2 1BD England RILEYS: In Administration; Sold to Valiant Sports ------------------------------------------------- The Press Association reports that Milton Keynes-based pool and snooker clubs firm Rileys has gone into administration, resulting in the loss of 200 jobs. Rileys, the Press Association relates, called in administrators Ernst & Young after experiencing tough trading difficulties due to a downturn in trade and a heavy debt burden. According to Times Online's Dominic Walsh, the company, which reported a loss on turnover of about GBP50 million last year, racked up debts of GBP18 million. Times Online recounts the smoking ban, the changes to rules on high jackpot gaming games and the recession hit the company's sales. Riley's assets were sold to Valiant Sports, a company which includes some of the firm's existing directors, the Press Association discloses. Valiant, Times Online says, is backed by Greenhill Capital Partners Europe and North Atlantic Value, the previous owners of Rileys. Citing joint administrator Simon Allport, the Press Association notes under the deal 129 sites will continue to trade, and the brand and 1,200 jobs will be preserved. However, 30 sites would close, Blackburn, Glasgow, Peterborough, Oxford, Clapham in London, Northampton and Wakefield, the Press Association adds. Times Online discloses according to Maurice Kelly, chief executive of Rileys, who is leading the deal, the company�s position had not been helped by the collapse of Kaupthing, the Icelandic bank that had supplied its GBP18 million of debt funding. "The purchase of the viable assets by Valiant Sports was the only option," Times Online quoted Mr. Kelly as saying. Valiant, Times Online states, hoped to start talks with the landlords of the 30 unviable clubs with a view to reopening some of them on new lease terms. The Press Association recalls Greenhill Capital and North Atlantic bought Rileys under the consortium name Crucible from leisure group Georgica for GBP34.1 million in 2007. SAFETY QUEST: Wound-Up by High Court ------------------------------------ A fraudulent wholesaling company has been wound-up by the High Court in Manchester following an investigation by the Companies Investigation Branch (CIB) of the Insolvency Service. Safety Quest Limited, based in Ashton-under-Lyne, Lancashire apparently carried on business between February and September 2008 during which time it filed bogus accounts in order to obtain supplies on credit. CIB's investigation found that the company's officers were untraceable and the company's trading premises had been abandoned. Bogus accounts had been filed at Companies House showing turnover for the years 2005, 2006 and 2007 between GBP3.5 million and GBP5.2 million. Between February and September 2008, 23 credit searches had been carried out by prospective suppliers but, in the absence of trading records, investigators were unable to establish the value of goods delivered to the company. The Court found that the company had filed false accounts and false information at Companies House, was insolvent, had been abandoned and that it had failed to comply with various requirements under the Companies Act 1985. The registered office of Safety Quest Limited was at Unit 5 Grosvenor Mill Business Centre, Grosvenor Street, Ashton-under- Lyne, Lancashire OL7 0RG. The company was incorporated in February 2004. All public inquiries concerning the affairs of the company should be made to: The Official Receiver Public Interest Unit North Second Floor 3 Piccadilly Place Manchester M1 3BN Tel: 0161 234 8500 Email: piu.north@insolvency.gsi.gov.uk TREBORTH GARDEN: Goes Into Administration ----------------------------------------- Bangor-Wales based Treborth Garden Nurseries has gone into administration, May Clarke at gleewire reports citing The Bangor Mail. The garden center, the report relates, has closed after the business went into administration last Monday. The report notes according to the Horticultural Trades Association, the garden center ran into cashflow problems. U P M MACHINERY: Appoints Administrators from Tenon Recovery ------------------------------------------------------------ Robert C. Keyes and Gareth W. Roberts of Tenon Recovery were appointed joint administrators of U.P.M. Machinery Sales Ltd. on March 10, 2009. The company can be reached at: U.P.M. Machinery Sales Ltd. 3 Brook Business Centre Cowley Mill Road Cowley Uxbridge Middlesex UB8 2FX England WIDNEY PRESSINGS: Calls in Joint Administrators from BDO Stoy ------------------------------------------------------------- Toby Scott Underwood and Christopher Kim Rayment of BDO Stoy Hayward LLP were appointed joint administrators of Widney Pressings Ltd. on March 12, 209. The company can be reached through BDO Stoy Hayward LLP at: 1 Bridgewater Place Water Lane Leeds LS11 5RU England WINTON RETIREMENT: Taps Joint Administrators from BDO Stoy ---------------------------------------------------------- Geoffrey Stuart Kinlan and David Harry Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of Winton Retirement Homes Ltd. on March 11, 2009. The company can be reached through BDO Stoy Hayward LLP at: Prospect Place 85 Great North Road Hatfield Hertfordshire AL9 5BS England * UK: Prospects for Retail Sector Remain Tough, Begbies Says ------------------------------------------------------------ Research from Begbies Traynor, the rescue, recovery and restructuring specialist, shows that conditions have continued to worsen during the last three months in the Retail sector. The Red Flag Alert early warning system for the period December 2008 to February 2009 shows that retail companies with critical problems have increased by an average 22% month on month, while actual insolvencies show an average 19% month on month increase. Against this backdrop of worsening conditions for retailers, the concern is that the large quarterly rent payment might be enough to push a lot more retail companies -� where rent is a significant cost �- into insolvency. In addition, this quarter is traditionally seen as the toughest in the annual calendar due to the seasonally weak trading period between January and March. The tough quarter will no doubt be further exacerbated this year by the late timing of the important Easter trading period (Easter Sunday falls on April 12, 2009 vs. March 23 in 2008). Easter trading is typically the single most important weekend of the year for DIY and gardening stores, quickly followed by two more key weekends �- the May bank holidays. This group of retailers in particular will be crossing their fingers in coming weeks for a combination of good weather and consumer confidence holding up against the odds. Nick Hood, Partner at Begbies Traynor, commented: "The prospects for the retail sector remain tough. Two new challenges are now impacting them, namely the continuing weakness of sterling, which is forcing up costs at the worst possible time, and the deluge of negative news on jobs, which continues to savage consumer confidence. Landlords offering monthly rent payment as an alternative to quarterly payment can only be a short-term, one-off cash flow palliative which will not cure the retail patient. The continuing unwillingness of landlords to consider either lower rents or turnover rents to help their struggling tenants is understandable, but unhelpful to retailers. While the failure rate among major store chains may not reach the crisis levels of the festive season, we are still likely to see insolvencies of well known retail chains in the high single digits over the next three months." * EUROPE: Fitch Takes Rating Actions on Five Public Automakers -------------------------------------------------------------- Following a review by Fitch Ratings of its five publicly rated European car manufacturers, the ratings of one manufacturer are affirmed with the Outlook revised to Negative from Stable, three downgraded and the ratings of one remaining on Rating Watch Negative. The rating actions reflect Fitch's revised forecasts for European car manufacturers and expectations for industry growth over the next two years. These, in turn, are driven by the agency's macro- economic assumptions for economic growth in 2009 and 2010. Fitch is increasingly concerned about the extent of manufacturers' falling profitability and the potential for accelerated cash consumption in the next two years, and the consequent potential for heightened volatility in financial metrics. While Fitch has employed conservative forecasts, the distribution of possible outcomes for revenues and operating cash flow is still biased towards the downside. * Daimler AG: -- Outlook changed to Negative from Stable, Long-term Issuer Default Rating (IDR) and senior unsecured debt affirmed at 'BBB+', Short-term IDR affirmed at 'F2'; * Fiat Spa: -- Long-term IDR and senior unsecured debt downgraded to 'BB+' from 'BBB-' (BBB minus), Short-term IDR downgraded to 'B' from 'F3', all removed from Rating Watch Negative. A Negative Outlook is assigned; * Peugeot SA: -- Long-term IDR and senior unsecured debt downgraded to 'BB+' from 'BBB-' (BBB minus), Short-term IDR downgraded to 'B' from 'F3', Outlook Negative; * Renault SA: -- Long-term IDR and senior unsecured debt downgraded to 'BB' from 'BBB-' (BBB minus), Outlook Negative; * Volkswagen Group: -- Long-term IDR and senior unsecured debt: 'BBB+', Short-term IDR: 'F2'- all remain on Rating Watch Negative. In particular, Fitch's analysis has focused on the companies' expected relative 'exit' profiles from the current downturn, including expected increases in leverage and their capacity to take advantage of a return to trend-levels of economic growth. Fitch is concerned that financial profiles for some companies will be structurally weaker at the end of a long period of recession, with recovery to prior levels of financial strength potentially a medium- or longer-term prospect. Fitch will issue reports on the above-mentioned companies in the coming days to comment further on rating rationales and guidelines. While issuer-specific concerns exist, the predominance of Negative Outlooks relates to factors common to all industry participants. Market environment: Car sales are expected to decline by more than 15% in Europe in 2009 and are likely to continue falling in 2010, although to a much lesser extent. The picture is similar in the US, with sales expected to fall 20% to 10.5m units in 2009. While emerging markets had a supporting effect on global car sales in 2007 and 2008, they are expected to suffer substantially in 2009, with double-digit declines in Russia or Brazil for example. In addition, lower availability of credit is expected to compound the underlying lower demand for cars from lower consumer spending and confidence. The effect of scrapping incentives for old cars implemented in several countries in Europe may mitigate the severity of negative underlying demand for new vehicles and should limit the extent of the downturn in the short term. However, Fitch believes that demand is brought forward rather than stimulated in absolute terms. Looking at previous experiences in the US or Europe, a pay-back effect is likely when incentives stop. Liquidity: Despite forecasting an aggregate 2009 negative free cash flow for industrial operations of over EUR12 billion for the rated groups, cash and cash equivalent, credit lines, current or expected renewals of bank debt are deemed sufficient at this point to cover short-term liquidity needs and projected cash burn for the industry. Profitability will be negatively impacted by the declining demand because of lower fixed cost absorption and by the expected lower product mix. In addition, car manufacturers are likely to suffer collectively from increasing pressure on and rising default risks from automotive suppliers. Direct cash injection into distressed suppliers or more favorable payment terms will have a negative impact on auto manufacturers' working capital and cash-flows. Despite the benefits of production cuts, companies could thus face further negative working capital changes as a result of weaker trade credit terms, extension for support to suppliers, lower payables and/or increased inventories. Financial services subsidiaries are also expected to contribute much less to manufacturers' earnings and cash generation in 2009 and 2010. On the contrary, rising refinancing costs and reduced access to capital markets may pose refinancing issues for the weakest groups. Fitch notes that continued extension of liquidity by the ECB against asset-backed instruments is a partial mitigating factor in this regard. Several FS operations will nonetheless suffer from falling residual values on leased vehicles and post further provisions, hurting their operating margins in the short term and their cash generation in the medium term as the risk materializes. Although liquidity risk remains a concern for manufacturers' FS operations, Fitch has not identified a particular near-term risk of default for any of the European original equipment manufacturers. The agency believes also that FS operations can reduce their loan books to improve their refinancing needs. ] Maturing FS short-term assets also cover a large part of the FS short-term debt. However, access of FS subsidiaries to liquidity remains exposed to a variety of key risks, including further deterioration in bank credit availability and any variation in policy measures for asset-backed instruments by the ECB. Government support thus far has supported groups' liquidity, but has not, and is not guaranteed in the future, to fully mitigate the relative deterioration in underlying profiles. Fitch will review and assess the impact of government support in a coming special comment. Outlook: Not all companies will be affected to the same extent, and this relative position is reflected in the rating actions. Further cost saving efforts and restructuring measures will be essential to limit the extent of the downside. All companies have announced a clear focus on cash preservation in 2009, including cuts in capex, reduced or no dividends for 2009 and asset disposals to boost liquidity. New alliances and/or strategic co-operations are likely to materialize, reshaping the sector in the next 2-3 years. The impact on credit profiles from such developments is as yet uncertain and will be assessed on a case-by-case basis. * BOOK REVIEW: Financial Planning for High Net Worth Individual --------------------------------------------------------------- Authors: Richard H. Mayer and Donald R. Levy Publisher: Beard Books Paperback: 428 pages List Price: US$59.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587982323/internetbankrupt Financial Planning for High Net Worth Individuals by Richard H. Mayer and Donald R. Levy is a comprehensive and authoritative guide to the art and science of wealth management. It is a source book that wealth management advisers can turn to when looking for in-depth answers. Collected here are the insights of expert advisers, presented in a thoughtful and thorough manner on the vital aspects of financial management. This book is for high net worth individuals as well as for every serious wealth management professional. Richard H. Mayer, Chartered Life Underwriter, Registered Investment Advisor. Mr. Mayer has more than 40 years of experience in the insurance industry where he specializes in advising high net worth individuals and in developing executive compensation plans. Donald R. Levy, JD, MBA, is an attorney and benefits consultant. Mr. Levy has authored or edited a number of books including the Research Institute of America Answer Book, Executive Compensation Treatise, 403(b) Answer Book, Guide to Cash Balance Plans, Quick Reference Guide to IRAs, and the State-by-State Guide to Managed Care Law. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *