/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090330.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 Monday, March 30, 2009, Vol. 10, No. 62 Headlines A U S T R I A GEBR. THEIL: Claims Registration Period Ends April 6 LTH LLC: Claims Registration Period Ends April 1 PLATON FENSTERBAU: Claims Registration Period Ends April 1 SCHALA LLC: Claims Registration Period Ends April 1 B E L A R U S B&B INSURANCE: A.M. Best Affirms C++ Fin'l Strength Rating F R A N C E AMERICAN INT'L: Two Managers at Paris Unit Step Down AIR FRANCE: Warns EUR200 Mln Operating Loss This Year NATIXIS SA: Traders Get EUR90 Mln in Bonuses VALEO SA: Ex-Chief's EUR3.2 Mln Exit Bonus Critiziced G E O R G I A * GEORGIA: IMF Approves US$186.6 Million Disbursement G E R M A N Y 4 U COMMUNICATION GMBH: Claims Registration Period Ends April 24 BAYERISCHE LANDESBANK: Fitch Downgrades Individual Rating to 'D/E' BLOCK-TEC GMBH: Claims Registration Period Ends April 29 BS SPORTREKLAME: Claims Registration Period Ends May 6 EK MOEBELELEMENTE: Claims Registration Period Ends May 5 HYPO REAL: Faces Default Risk of Up to 60% of Assets HYPO REAL ESTATE: DBRS Puts 'B' Rating on TruPS Under Review PMK METALLKONSTRUKTIONS: Claims Registration Period Ends May 29 QIMONDA AG: Seeks Potential Investors in Taiwan and Russia G R E E C E DRYSHIPS INC: Reports US$1.02 Bln Loss for Fourth Quarter 2008 MARFIN INVESTMENT: S&P Gives Stable Outlook; Affirms 'BB' Rating H U N G A R Y * HUNGARY: IMF Approves EUR2.35 Billion Disbursement I R E L A N D CORSAIRFINANCE NO 6: S&P Lifts Rating on Notes to 'AA+' from 'B-' SVG DIAMOND: Moody's Cuts Ratings on Two Classes of Notes to Low-B I T A L Y IT HOLDING: S&P Withdraws 'D' Long-Term Corporate Credit Rating K A Z A K H S T A N ALLIANCE BANK: S&P Cuts Counterparty Credit Rating to 'C/C' ASIA TORG: Creditors Must File Claims by May 1 BAT COTTON: Creditors Must File Claims by May 1 BTA BANK: S&P Cuts Counterparty Credit Rating to 'C/C' BTA IPOTEKA: S&P Downgrades Counterparty Credit Rating to 'C/C' CARDINAL CORPORATION: Creditors Must File Claims by May 1 JAISAN LLP: Creditors Must File Claims by May 1 KAZ HOLDING: Creditors Must File Claims by May 1 MAIRA LLP: Creditors Must File Claims by May 1 NIMIR HOLDINGS: Creditors Must File Claims by May 1 OZAT ESKER: Creditors Must File Claims by May 1 ROZOVY FLAMINGO: Creditors Must File Claims by May 1 TEMIRBANK JSC: S&P Cuts Counterparty Credit Rating to 'C/C' VK PROM: Creditors Must File Claims by May 1 K Y R G Y Z S T A N HAN-TENGRI INSURANCE: Creditors Must File Claims by April 10 PHARM CONSULTING: Court Names Insolvency Manager L U X E M B O U R G ASHWELL RATED: S&P Lifts Rating on EUR50MM Notes to 'A+' from 'B-' TENZING CFO: Moody's Cuts Ratings on 5 Classes of Notes to Low-B N E T H E R L A N D S CREDIT EUROPE: Moody's Cuts Bank Financial Strength Rating to 'D' DEMIR-HALK BANK: Moody's Lowers Financial Strength Rating to 'D' N O R W A Y NORSKE SKOG: To Buy Back US$150 Million of October 2011 Bond Loan NORSKE SKOG: S&P Retains 'BB-' Rating on Repurchase Offer R O M A N I A * ROMANIA: EUR12.95 Billion IMF Loan Agreed R U S S I A BELORETSKIY LESOKOMBINAT: Creditors Must File Claims by May 13 BRATYA-STROY LLC: Court Names Temporary Insolvency Manager ELEKTRONIKA OJSC: Creditors Must File Claims by May 13 GALLERY MEDIA: Moody's Cuts Corporate Family Rating to 'Caa2' MEGA-STROY LLC: Creditors Must File Claims by May 13 SERVIS-M LLC: Creditors Must File Claims by April 13 SIBIRTELECOM OAO: Fitch Affirms LT Issuer Default Rating at 'B+' STEKLO-FIN LLC: Court Names Temporary Insolvency Manager TRANS-LES-KOM LLC: Creditors Must File Claims by May 13 UNECH-MASLO-ZAVOD OJSC: Creditors Must File Claims by May 13 VTOR-TSVET-MET PLANT: Creditors Must File Claims by April 13 WOOD-PROCESSING COMPANY: Creditors Must File Claims by April 13 * Fitch Takes Various Rating Actions on Nine Russian Banks S E R B I A & M O N T E N E G R O * SERBIA: Enhanced Stand-By Arrangement Agreed with IMF S W I T Z E R L A N D AKZENTSWISS.CH LLC: Creditors Must File Claims by March 31 BAUSCHREINEREI AEGERI: Deadline to File Claims Set March 31 BRYNER LLC: Creditors Have Until March 31 to File Claims CEDIX LLC: Proofs of Claim Filing Deadline is March 31 G & H GRIEDER: Creditors' Proofs of Claim Due by March 31 METSO MINERALS: March 31 Set as Deadline to File Claims WIGET & PARTNER: Creditors Must File Proofs of Claim by March 31 U K R A I N E ADELISK LLC: Creditors Must File Claims by April 11 DAFI-BUILDING PLUS LLC: Court Starts Bankruptcy Procedure GULIAYPOLE FOOD: Creditors Must File Claims by April 11 HORK LLC: Court Starts Bankruptcy Supervision Procedure IKVA AGRICULTURAL: Creditors Must File Claims by April 11 L-O-K LLC: Court Starts Bankruptcy Supervision Procedure * UKRAINE: Default on Foreign Debt Unlikely, Prime Minister Says U N I T E D K I N G D O M AMERICAN INT'L: Posted Collateral on Rented Property in U.K. BUSINESS LTD: Appoints Joint Administrators from BDO Stoy Hayward EBTM PLC: Taps Joint Administrators from BDO Stoy Hayward ELMWALK SERVICES: Appoints Administrators from Tenon Recovery FORBURY HOTEL: Calls in Joint Administrators from Baker Tilly GLOBAL TRADER: Unsecured Creditors to Get 68 Pence in the Pound GREENCYCLE PLC: In Administration; KPMG Appointed LEVERAGEDFINANCE EUROPE: S&P Cuts Rating on Class D Notes to 'B' MILLENNIUM COMMUNICATIONS: Andrew Appleyard Named Liquidator PORTHMADOG SERVICES: Appoints Joint Liquidators from PKF SONGBIRD ESTATES: At Risk of Breaching Loan Covenants WATERFORD WEDGWOOD: KPS Capital Acquires Certain Assets * UK: Second Mortgage Business Badly Hit by Credit Crunch * IVA Could Help Struggling Borrowers Avoid Bankruptcy * BOND PRICING: For the Week March 23 to March 27, 2009 ********* ============= A U S T R I A ============= GEBR. THEIL: Claims Registration Period Ends April 6 ---------------------------------------------------- Creditors owed money by LLC Gebr. Theil (FN 263126a) have until April 6, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Georg Buder Bethlehemstrasse 3 4020 Linz Austria Tel: 0732/771877 Fax: 0732/77187718 E-mail: moerth.buder@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on April 20, 2009, for the examination of claims at: Land Court of Linz (458) Room 522 Linz Austria Headquartered in Ansfelden, Austria, the Debtor declared bankruptcy on Feb. 18, 2009, (Bankr. Case No. 12 S 18/09). LTH LLC: Claims Registration Period Ends April 1 ------------------------------------------------ Creditors owed money by LLC LTH Neubauer (FN 278299p) have until April 1, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Werner Stanek Wollzeile 33/20 1010 Vienna Austria Tel: 512 29 02 Fax: 512 29 02 30 E-mail: werner-stanek@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 15, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 25, 2009, (Bankr. Case No. 38 S 11/09h). PLATON FENSTERBAU: Claims Registration Period Ends April 1 ---------------------------------------------------------- Creditors owed money by LLC Platon Fensterbau (FN 278229k) have until April 1, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Helmut Platzgummer Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Serie Fax: 533 19 39 39 E-mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on April 15, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 20, 2009, (Bankr. Case No. 38 S 6/09y). SCHALA LLC: Claims Registration Period Ends April 1 --------------------------------------------------- Creditors owed money by LLC Schala (FN 305777y) have until April 1, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Andrea Simma Favoritenstrasse 22/12a 1040 Vienna Austria Tel: 504 64 08 Fax: 504 64 08 22 E-mail: simma@mitrecht.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on April 15, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 25, 2009, (Bankr. Case No. 38 S 10/09m). ============= B E L A R U S ============= B&B INSURANCE: A.M. Best Affirms C++ Fin'l Strength Rating ---------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating of C++ (Marginal) and the issuer credit rating of "b+" of B&B Insurance Co., OJSI (B&B) (Belarus). The outlook for both ratings is stable. The ratings reflect the company's weak although improving risk-adjusted capitalization, despite limited financial flexibility and moderate financial performance with volatile underwriting performance. A.M. Best believes that B&B's weak risk-adjusted capitalization is improving mainly due to substantial unrealized capital gains on real estate. A.M. Best believes that the improving capital position is supportive of projected growth of around 10%-15% per annum in 2009 and 2010. The prospective risk-adjusted capitalization remains strained due to limited financial flexibility and high dividend payments (around 20% of retained profit). In addition, A.M. Best is of the opinion that despite the increased level of protection due to a newly adopted reinsurance program, the capital might be negatively impacted in the event of a major catastrophic event. There are also increased levels of credit risk, as from 2008 all outward reinsurance is transacted through a non-rated Belarusian National Reinsurance Organisation. B&B's overall operating performance has been consistently positive; however, it is heavily dependent on investment income results, which mainly derive from rental and interest income. Once the final 2008 results under International Financial Reporting Standards are published, the company's technical results are likely to be negative, despite its moderate underwriting performance, with a combined ratio of below 95% and loss ratio of 69%. A.M. Best believes that the company's underwriting performance will remain at a moderate level; however, the loss ratio is likely to be volatile as a result of its decision to increase the retention level from US$1 million to US$1.5 million, as well as the share of accepted inward reinsurance. =========== F R A N C E =========== AMERICAN INT'L: Two Managers at Paris Unit Step Down ---------------------------------------------------- American International Group, Inc., has named AIG Executive Vice President Rodney O. Martin, Jr., as Chairperson of its International Life and Retirement Services unit. In his new role, Mr. Martin will be responsible for AIG's international life and retirement businesses, including American International Assurance Company Limited (AIA), American Life Insurance Company (ALICO), AIG Star Life Insurance Co., Ltd., AIG Edison Life Insurance Company, and Nan Shan Life Insurance Company, Ltd. In addition Mr. Martin will serve as Chairperson of ALICO and Chairperson of AIA. Mr. Martin reports directly to AIG Chairman and CEO Edward M. Liddy. Mr. Martin will assume these additional responsibilities following the retirement of AIG Senior Vice Chairperson and AIG Board member Edmund Tse, 71, who has served 48 years in key roles with AIG and was the principal architect of AIG's global life insurance platform. Mr. Tse will step down at AIG's Annual Meeting of Shareholders, scheduled for May 13. He will continue to serve as Honorary Chairperson of AIA and Non-Executive Chairperson of both Nan Shan and the Philippine American Life and General Insurance Company (Philamlife). Mr. Tse began his career at AIG in 1961 when he joined AIA in Hong Kong. He was named President and Managing Director of Nan Shan in 1975, President and CEO of AIA in 1983, Chairperson of Nan Shan in 1990, and Chairperson and CEO of AIA in 2000. He was elected to the AIG Board of Directors and appointed Vice Chairperson in 1997 and Senior Vice Chairperson in 2001. Mr. Tse served as AIG Co- Chief Operating Officer from 2002 to 2003. He was the first Chinese executive to be elected to the Insurance Hall of Fame, the most prestigious award in the insurance industry. Mr. Martin was elected Chairperson and Chief Executive Officer of ALICO and Chief Operating Officer of AIG's Worldwide Life Insurance in 2006, and AIG Executive Vice President Life Insurance in 2002. Prior to that, Mr. Martin had served as President and CEO of AIG American General following AIG's acquisition of American General Corporation in 2001 and as Senior Vice Chairman, Financial Services, responsible for American General's life insurance and consumer lending operation. He joined American General as President in 1995 after spending 20 years in the life insurance business. Mark Wilson, currently President and COO of AIA, has been named President and Chief Executive Officer of AIA, also effective upon Mr. Tse's retirement. He will report to Mr. Martin. Both Mr. Martin's and Mr. Wilson's appointments are subject to regulatory approval. AIG's domestic life and retirement businesses will continue under the leadership of AIG Senior Vice President, Life Insurance, Matthew Winter, and AIG Executive Vice President, Retirement Services, Inc. Jay S. Wintrob. Mr. Winter and Mr. Wintrob will continue to report directly to Mr. Liddy. Commenting on the contributions made to AIG by Mr. Tse, AIG Chairperson and CEO Liddy said, "Edmund Tse's leadership, wisdom and vision will be greatly missed. He has set an example of how change can represent opportunity, and I have personally appreciated his counsel. I am especially pleased he has agreed to continue serving AIG in non-executive roles with AIA, Nan Shan, and Philamlife. We are fortunate to have Rod Martin and the rest of the experienced leadership team in life and retirement services to carry on the tradition of success established by Edmund." Two Managers of Paris Unit to Leave Firm Citing people familiar with the matter, Liz Rappaport, Liam Pleven, and Carrick Mollenkamp at The Wall Street Journal report that Mauro Gabriele and James Shephard, top managers in AIG's Paris-based Financial Products unit Banque AIG have resigned, leaving the Company and its officials scrambling to replace them to avoid an unlikely but expensive situation in which billions of dollars in AIG trading contracts could default. According to WSJ, the sources said that Messrs. Gabriele and Shephard have resigned in recent days but have agreed to stay on for a transition. WSJ notes that AIG must replace Messrs. Gabriele and Shephard to the satisfaction of French banking regulators. AIG said that its lead U.S. overseer, the Federal Reserve, is talking with French regulators and AIG officials to deal with the consequences of a complicated legal scenario in which the departures of Messrs. Gabriele and Shephard could trigger defaults in US$234 billion of derivative transactions, WSJ relates. WSJ notes that had Messrs. Gabriele and Shephard not agreed to stay, French regulators might have appointed a designee to manage Banque AIG, which could trigger defaults under the bank's derivative contracts. WSJ, citing a person familiar with the matter, states that under private contracts, a regulator's appointment of a manager constitutes a change in control and the provision is often included in derivative contracts where parties want to preserve a way out if something about their counterparties changes. Citing AIG, WSJ states that defaults could force European banks involved in the trades to raise billions in capital to cushion potential losses. The report says that those banks used Banque AIG to hedge the risk in some of the assets they own, letting them hold less capital against those assets, which could include securities like mortgages and corporate debt. Based in New York, American International Group, Inc. (AIG), is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from US$22.76 on September 8, 2008, to US$4.76 on September 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On September 22, 2008, AIG entered into an US$85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At September 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled US$63 billion, including accrued fees and interest. Since September 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to September 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, US$40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At September 30, 2008, AIG had US$1.022 trillion in total consolidated assets and US$950.9 billion in total debts. Shareholders' equity was US$71.18 billion, including the addition of US$23 billion of consideration received for preferred stock not yet issued. The Troubled Company Reporter reported on March 4, 2009, that Moody's Investors Service confirmed the A3 senior unsecured debt and Prime-1 short-term debt ratings of American International Group, Inc. AIG's subordinated debt rating has been downgraded to Ba2 from Baa1. The rating outlook for AIG is negative. This rating action follows AIG's announcement of net losses of US$62 billion for the fourth quarter and $99 billion for the full year of 2008, along with a revised restructuring plan supported by the US Treasury and the Federal Reserve. This concludes a review for possible downgrade that was initiated on September 15, 2008. AIR FRANCE: Warns EUR200 Mln Operating Loss This Year ----------------------------------------------------- Air France-KLM Group said it may post an operating loss of about EUR200 million (US$271 million) for the year ending March 31 instead of a profit it had predicted on Feb. 13 due to the global recession and collapse in air travel, Bloomberg News reports. The carrier, the report relates, also expects another net loss in the next fiscal year along with about 6 percent decrease in revenue. Traffic has suffered a sustained decline this year and the first few weeks of March, usually one of the strongest periods, showed a further drop, Chief Executive Officer Pierre-Henri Gourgeon said in a company statement obtained by the news agency. The report recalls Air France said in February it would eliminate as many as 2,000 jobs after lower ticket revenue and dwindling cargo volumes pushed to a EUR505 million net loss in the three months ended Dec. 31. Air France-KLM (OTC:AFLYY) -- http://www.airfranceklm- finance.com/ -- is an airline company. The Company's core business is passenger transportation. Its activities also include cargo, aeronautics maintenance and other air-transport related activities, including principally catering and charter services. The Company's business segments comprise: passenger, cargo, maintenance and others. The Company operates in five geographical regions: Europe and North Africa; Caribbean, French Guiana and Indian Ocean; Africa, Middle East; Americas, Polynesia; Asia and New Caledonia. As of March 31, 2008, Air France-KLM fleet in operation comprised: aircraft other fleet 8%; aircraft in the regional fleet 31%; long-haul aircraft 28%, and medium-haul aircraft, which represented 33%. On February 14, 2008, the Company acquired VLM Airlines. In January 2008, the Company acquired an additional 1.25% of KLM. After this acquisition Air France-KLM held 98.75% interest representing 49% of KLM voting rights. NATIXIS SA: Traders Get EUR90 Mln in Bonuses -------------------------------------------- Bloomberg News reports newspaper Les Echos, citing unidentified officials, said Natixis SA paid its traders EUR90 million in 2008 bonuses. Bonuses at the bank are down 60 percent from the previous year, Bloomberg News says citing the newspaper. Natixis was one of the country's six largest consumer banks which benefited from the French government's EUR10.5 billion financing in December, according to Bloomberg News. Meanwhile, Reuters relates Natixis, which posted a EUR2.8 billion loss in 2008, said Wednesday last week it would open talks with unions about possibly cutting 166 jobs. The move will affect the bank's global custody services unit, Alice Dore at Dow Jones Newswires says. Discussions with unions will also concern a proposed reduction of 130 jobs at Natixis' investment banking operations in France, as announced in December, according to Dow Jones Newswires. Separately, Digby Larner at Dow Jones Newswires, citing a statement issued by the AMF financial markets authority, reported Natixis' two main shareholders have amended their shareholder pact to allow them to jointly acquire up to 2% each of additional capital and voting rights from the market. According to the report, French mutual banks Banque Populaire and Caisse d'Epargne, which are in the process of merging, currently own around 70% of Natixis, split evenly between them. The new amendment is valid until the end of this year, the statement cited by the news agency said. About Natixis SA Headquartered in Paris, France, Natixis SA (EPA:KN) -- http://www.natixis.com/-- formerly Natexis Banques Populaires, is involved in the banking sector and offers five main types of services: financing and investment banking, asset management, services, receivables management, private equity and private banking. Natixis also consolidates a proportion of the earnings of the retail banking activities of the Caisse d'Epargne Group and the Banque Populaire Group, its main shareholders. The Bank clientele comprises large corporations, medium-sized companies, institutions and the Banque Populaire retail-banking network. The Bank operates in 68 countries located in France, Europe, the Americas, Africa, Asia and Oceania. Natixis is listed on the Euronext Paris Stock Exchange. * * * As reported in the Troubled Company Reporter-Europe on Mar. 10, 2009, Moody's Investors Service affirmed Natixis SA's "D+" bank financial strength rating and changed its outlook to negative. As reported in the Troubled Company Reporter-Europe on Feb. 5, 2009, Fitch Ratings downgraded Natixis SA's Individual Rating to 'E' from 'D'. VALEO SA: Ex-Chief's EUR3.2 Mln Exit Bonus Critiziced ----------------------------------------------------- David Pearson at Dow Jones reports Valeo SA's former chairman and chief executive officer, Thierry Morin, will receive compensation totaling EUR3.2 million (US$4.4 million). According to the report, Valeo's new acting chairman, Pascal Colombani, said that in determining Mr. Morin's severance package, the board decided not to take into account exceptional restructuring measures decided on in the fourth quarter of 2008. Provisions related to those restructuring measures caused Valeo to post a net loss of EUR313 million for the fourth quarter and a loss of EUR207 million for the full year, Dow Jones says. Dow Jones relates news of Mr. Morin's compensation received criticisms including that of Laurence Parisot, head of Medef, the influential business leaders' association, who called on Mr. Morin to give up his compensation, saying it contradicted the group's recommendations on executive remuneration. The Associated Press meanwhile says according to a television interview with Claude Gueant, President Nicolas Sarkozy's chief of staff, the French government plans to issue a decree this week "fixing the conditions under which stock options and bonuses are forbidden in companies which have benefited from state aid." The state owns 8 percent of Valeo, which also received state aid, the AP discloses. However, Mr. Colombani, as cited by Dow Jones, said that "contrary to what has been said, Valeo hasn't received any aid from the French state." Dow Jones recalls the French government's strategic investment fund last month said it bought a 2.35% stake in Valeo for EUR19 million by buying up shares on the market. Valeo SA (EPA:FR) is an independent industrial company focused on the design, production and sale of components, systems and modules for cars and trucks, both on the original equipment market and the aftermarket. It operates in one segment: Automotive equipment. In December 2007, the Company sold its Wiring harness activity to German Group Leoni. In July 2007, the Company acquired Irish Group Connaught Electronics Ltd (CEL), which manufactures electronic equipment for the automotive industry. In May 2007, Valeo formed a joint venture in automotive security systems with the A.K. Minda Group, an India-based automotive equipment supplier. On July 24, 2007, Valeo and the N.K. Minda Group created another joint venture to produce starters and alternators for private passenger vehicles, 66.7%-owned by Valeo and 33.3%- owned by Minda. * * * As reported in the Troubled Company Reporter-Europe on Jan. 9, 2009, Moody's Investors Service downgraded to Ba1 from Baa3 the long-term rating and to Not Prime from Prime-3 the short-term rating of Valeo S.A. At the same time Moody's assigned a Ba1 Corporate Family Rating. The rating action concludes the review for downgrade initiated on December 22, 2008. The outlook is negative. ============= G E O R G I A ============= * GEORGIA: IMF Approves US$186.6 Million Disbursement ----------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on March 23 completed the second review of Georgia's performance under an 18-month Stand-By Arrangement totaling SDR477.1 million (about US$705.3 million). The completion of the review allows for the immediate disbursement of an amount equivalent to SDR126.2 million (about US$186.6 million). The Arrangement was approved in September 2008 to support the Georgian authorities' macroeconomic policies, rebuild gross international reserves, and bolster investor confidence. The Executive Board also concluded the 2009 Article IV consultation with Georgia. Details of the findings will be published in a Public Information Notice in due course. After the Executive Board's discussion on March 23, 2009, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chair, said: "Economic and financial conditions have become more challenging since the last program review, as Georgia feels the effects of the global crisis. Sharp declines in trade and workers' remittances, weak commodity prices, and recessions and currency depreciations in major trading partners are threatening domestic confidence and adversely affecting foreign direct investment inflows, and growth prospects. The authorities plan to mitigate the impact of the economic slowdown through a donor-financed fiscal stimulus and a reorientation of expenditures. "With the aim of aligning public spending with available official external financing, the authorities have reduced the 2009 fiscal deficit target. To ensure that public spending has the maximum impact on the population at large and to alleviate pressures on the poorest, expenditures will be reoriented in favor of essential productivity-enhancing infrastructure investment and targeted social support measures. A reform of expenditure management is also being planned. "The authorities are encouraged to use all the instruments of monetary policy, including the interest rate and reserve requirements, as part of their adjustment strategy. In this regard, the planned improvements in the central bank's liquidity framework are timely, and should help enhance the effectiveness of interest rate policy. "Foreign exchange auctions have been introduced, an important step toward exchange rate flexibility and the preservation of external stability. This will also help the authorities to protect, and ultimately to rebuild, international reserves. "Against the background of a deterioration in banks' loan portfolios and the impact of a sharp contraction in credit on bank profitability, strong supervisory vigilance over the banking system will be crucial. In that vein, the Financial Supervisory Agency is strengthening provisioning based on bank-by-bank assessments, and will stress-test banks with technical assistance from the Fund. The authorities are encouraged to consider measures to bolster depositor confidence and deal with possible systemic risks. "Georgia's economic policies are being crafted not only in response to the immediate crisis, but also with a view to supporting sustained economic growth over the medium term. The authorities are encouraged to build on their strong track record of reforms and their commitment to fiscal prudence and low inflation. Special focus should be placed on improving Georgia's competitiveness, notably by enhancing the environment for private investment in the tradable sector, and thus helping to reduce the current account deficit and raise employment," Mr. Kato said. ============= G E R M A N Y ============= 4 U COMMUNICATION GMBH: Claims Registration Period Ends April 24 ---------------------------------------------------------------- Creditors of 4 U Communication GmbH have until April 24, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal 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. Joerg Nerlich Laurentiusstr. 21�23 42103 Wuppertal Germany Tel0202/40 86 150 Fax: 02024086159 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: 4 U Communication GmbH Memeler Strasse 30 42781 Haan Germany Attn: Irni Aidinidou, Manager Robert-Koch-Strasse 21 42781 Haan Germany BAYERISCHE LANDESBANK: Fitch Downgrades Individual Rating to 'D/E' ------------------------------------------------------------------ Fitch Ratings has affirmed Germany-based Bayerische Landesbank's Long-term Issuer Default 'A+' rating on continued strong state support, despite pressure on the standalone credit profile arising from challenges relating to a major restructuring process and its vulnerability to deteriorating asset quality. The Individual rating was downgraded to 'D/E' from 'C/D'. The bank's other ratings have been affirmed at Short-term IDR 'F1+', Support '1', and Support Rating Floor 'A+'. The Outlook for the Long-term IDR is Stable. Those obligations of BayernLB that continue to benefit from 'Gewaehrtraegerhaftung' (a guarantee from the Free State of Bavaria; rated 'AAA'/Outlook Stable) as well as those issued under the EUR15 billion debt issuance program guaranteed by the German Financial Market Stabilization Fund (FMSF or 'Soffin) are affirmed at 'AAA'. The Long-term rating of BayernLB Capital Trust I US$850 million trust preferred securities (XS 0290135358) was upgraded to 'B+' from 'CCC+' and placed on Rating Watch Negative. The rating actions follow the publication of BayernLB's FY08 results, the presentation of details of the bank's restructuring plan, and its announcement of distributions on its hybrid Tier 1 capital instrument. Fitch views positively the intention of the bank to focus on core businesses and to target defined customer segments in selected regions. The reduction of approximately EUR70 billion risk- weighted assets, around 5,600 staff and some EUR700 million costs should help to refocus the bank on activities with an attractive earnings potential, reduce its risk profile and increase efficiency. Nevertheless, Fitch notes that BayernLB will need to undergo a major restructuring to return profitability to an acceptable and sustainable level in the medium term. The bank has to absorb restructuring costs and the payments on the Free State of Bavaria's silent participation. Significant uncertainties also remain with regard to BayernLB's future structure and profitability, since the European Commission may impose conditions on the bank before finally approving state aid. In addition to execution risks from the restructuring and the challenge to grow profitable, low-risk business in real estate finance and SME lending, credit risks on the bank's balance sheet are Fitch's main concern. "BayernLB's exposure to central and eastern Europe, largely via its subsidiaries MKB Bank and Hypo Group Alpe Adria, as well as exposures to sectors particularly under pressure in the deteriorating economic environment such as automotive and construction are likely to drive impairment charges up," said Andrea von Schnurbein, Director in Fitch's Financial Institutions team. "In Fitch's view, deteriorating asset quality will delay the bank's return to profitability and erode parts of the capital buffer." BayernLB's EUR19.6 billion structured credit securities portfolio has been covered by a EUR6 billion risk shelter, of which EUR4.8 billion was provided by the Free State of Bavaria and EUR1.2 billion was absorbed by the bank. As a result, the bank is protected from additional write-downs and impairments up to this amount. Although actual losses have remained small, the substantial share of non-prime RMBS and CDOs are a concern. All these aspects are reflected in the downgrade of the Individual Rating by two notches. The upgrade of the rating of BayernLB's US$850 million trust preferred securities follows BayernLB's announcement on March 24, 2009, that the 2008 coupon on the hybrid Tier 1 capital security will be paid in May 2009. The EC expects the bank not to make any interest or dividend payments on profit participation, hybrid Tier 1 capital or silent participations unless the bank is contractually obliged to do so. According to the terms of the trust preferred security, periodic distributions will be made if a subsidiary declares or pays distributions on parity securities, even in the event that BayernLB does not report a distributable profit. Contrary to Fitch's expectation based on the bank's statement dated December 18, 2008 it appears that these conditions are now being met. However, Fitch has placed the hybrid on RWN to reflect the risk of future coupon deferral in the light of the subdued outlook for short-term profitability. In line with the bank's expectations announced in Q408, BayernLB's reported EUR5.1 billion net loss for 2008 was driven by EUR5.4 billion negative impact from the financial market crisis, largely relating to write-downs and impairments on its ABS portfolio and its exposures to Icelandic banks and Lehman Brothers (EUR1.4 billion in total). The EUR10 billion capital injection by the Free State of Bavaria improved BayernLB's Tier 1 ratio to a more comfortable level of 9.2% as at end-2008 (EUR7 billion of which will be booked in Q109) compared with 7.6% at end-H108. BayernLB is one of Germany's largest Landesbanks by equity. It co-operates with the 75 Bavarian savings banks, which hold strong market shares in retail deposits and SME lending in one of Germany's strongest regional economies. BayernLB received support from the Free State of Bavaria in the form of a EUR4.8 billion risk shield for its ABS portfolio and EUR10 billion in fresh capital, EUR3 billion of which were injected in the form of a silent participation. As a result, Bavaria's stake in the bank increased to 94%, diluting the Association of Bavaria Savings Banks' stake to 6%. BLOCK-TEC GMBH: Claims Registration Period Ends April 29 -------------------------------------------------------- Creditors of Block-tec GmbH Holzfertigbau Holz & Baustoffhandel 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 10:15 a.m. on June 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Chemnitz Hall 2011 Gerichtsgebaude Gerichtsstr. 2 09112 Chemnitz Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tobias Hohmann Hilbersdorfer Str. 1 09131 Chemnitz Germany Tel: 0371 4590235 Fax: 0371 4590238 E-mail: chemnitz@floether-wissing.de The court opened bankruptcy proceedings against the company on March 25, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: Block-tec GmbH Holzfertigbau Holz & Baustoffhandel Attn: Jens Miserski, Manager Muenchhofsstrasse 16 04749 Ostrau Germany BS SPORTREKLAME: Claims Registration Period Ends May 6 ------------------------------------------------------ Creditors of BS Sportreklame GmbH have until May 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 15, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wetzlar Meeting Room 201 Building B II. Stick Wetherstr. 1 35578 Wetzlar 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. Jan Markus Plathner Lyoner Strasse 14 60528 Frankfurt Germany Tel: 069/96 23 340 Fax: 069/96 23 34 22 E-mail: frankfurt@brinkmann-partner.de The court opened bankruptcy proceedings against the company on March 25, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The debtor can be reached at: BS Sportreklame GmbH Schelderau 1 35683 Dillenburg Germany Attn: Bernd Steinbrecher, Manager Mittelfeldstrasse 22 35708 Haiger Germany EK MOEBELELEMENTE: Claims Registration Period Ends May 5 -------------------------------------------------------- Creditors of EK Moebelelemente Enger GmbH i. L. have until May 5, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on May 26, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Bagh Bunsenstr. 3 32052 Herford Germany 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: EK Moebelelemente Enger GmbH i. L. Attn: Walter Kuhlmann, Liquidator Suedstr. 7 32130 Enger Germany HYPO REAL: Faces Default Risk of Up to 60% of Assets ---------------------------------------------------- Andrea Thomas of Dow Jones Newswires reports that according to a report from PricewaterhouseCoopers LLP, Hypo Real Estate Holding AG's default risk could amount up to 60% of its total assets if it collapsed without the government taking a stake. Dow Jones notes media reports put the default risk of up to 60% at EUR235 billion, although the bank still hasn't provided the total asset sum for 2008. The German finance ministry obtained a copy of the report by PwC Tuesday last week, Dow Jones relates citing spokesman Stefan Olbermann. However, a spokesman for HRE said he was not aware of the report, Reuters states. Lower House OKs Nationalization As reported in the Troubled Company Reporter-Europe on March 24, 2009, Germany's lower house of parliament backed a bill allowing nationationalization of HRE for a specified time period, but only as a last resort. International broadcaster Deutsche Welle said the government stressed HRE would only be nationalized for a limited period of time if all other attempts by the state to take control have been exhausted. The legislation stipulates that the government must first try alternatives to expropriation such as seeking agreement from shareholders to part with stock or their participation in a capital injection, Deutsche Welle said. According to Andrea Thomas at The Wall Street Journal, the bill, designed to help the government gain control over HRE, was backed by 379 of the 532 votes cast, while 107 voted against it and 46 abstained. A vote in the upper house is planned for April 3, WSJ said. "In order to get legal certainty and the speed that we need to act, it is necessary to get quickly a 100% state-controlling majority in HRE, because we must prevent the collapse of a systemically relevant bank and any resulting knock-on effect," WSJ quoted Deputy Finance Minister Nicolette Kressl as saying. The German government, WSJ related, aims to take control of HRE in April and the motion for a forced nationalization of the bank has to be submitted by June 30 and the move has to be enforced by Oct. 31. The bill was approved by Chancellor Angela Merkel on Feb. 18. On March 20, 2009, the Troubled Company Reporter-Europe, citing The Financial Times, reported HRE's largest shareholder, U.S.- based investment firm J.C. Flowers & Co., opposes the expropriation and wants the government instead to take a stake of 75 per cent in the lender via a capital raising. J.C. Flowers holds a 24 percent stake in HRE, which it bought last year in a EUR1.1 billion deal. "JC Flowers is disappointed that the government continues on the path to expropriation and nationalization given that we have provided a clear alternative that secures the future of HRE and better protects the German taxpayer and the rights of all shareholders," the FT quoted the private equity group as saying after lawmakers in parliament's finance committee approved the draft law. The private equity firm however remains "committed to a constructive dialogue," a German spokesman for Flowers told Dow Jones Newswires. HRE already received EUR102 billion in bank and state loans and state guarantees. According to Bloomberg News, HRE was forced to seek a bailout after Depfa Bank Plc, its Dublin-based unit, failed to get short- term funding in September when credit markets seized up. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. * * * As reported in the Troubled Company Reporter-Europe on Dec. 2, 2008, Dominion Bond Rating Service downgraded its long-term ratings for Hypo Real Estate Holding AG (Holding) and related entities (together Hypo Real Estate or the Group), including the Senior Unsecured Long-Term Debt rating for Holding, which was downgraded to A (low) from "A". Concurrently, all ratings have been placed Under Review with Negative Implications. DBRS's rating action followed the announcement of Hypo Real Estate's Q3 2008 results, the announcement of an additional EUR20 billion short-term debt guarantee and of additional information about the Group's liquidity challenges, earnings outlook and pending application for more comprehensive external support. The downgrade and the Under Review Negative status reflect DBRS's concern that Hypo Real Estate's franchise has been weakened by its ongoing liquidity challenges. The Group's lack of access to market funding currently restricts its ability to write new business and requires it to seek more comprehensive support, demonstrating the weakening of its intrinsic fundamentals, the rating agency said. A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group incurred a consolidated pre-tax loss of EUR3.105 billion for the third quarter of 2008 compared with a pre-tax profit of EUR237 million in the corresponding previous year period. The quarterly loss is mainly attributable to the writeoff of goodwill and other intangible assets attributable to the initial consolidation of DEPFA Bank Plc (EUR2.482 billion). On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's Ratings Services lowered its long-term counterparty credit ratings on the seven rated entities of Hypo Real Estate (HRE) group to 'BBB' from 'BBB+', namely, Germany-based commercial real estate lenders Hypo Real Estate Bank International AG and Hypo Real Estate Bank AG, public-finance lenders Depfa Deutsche Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank Bank International S.A. "These rating actions reflect the group's strained financial profile, weak funding position, and concerns about the viability of its business model," said Standard & Poor's credit analyst Volker von Kruechten. "We expect HRE to restructure and downsize, which may cause further pressure on earnings and capital, owing to the difficult market environment and a deteriorating credit cycle." HYPO REAL ESTATE: DBRS Puts 'B' Rating on TruPS Under Review ------------------------------------------------------------ Dominion Bond Rating Service changed the status of most ratings on Hypo Real Estate Holding AG and related entities (together HRE or the Group) to Under Review with Positive Implications. The ratings had previously been Under Review with Negative Implications. The rating action includes the Senior Unsecured Long-Term Debt ratings of A (low) and the Short-Term Debt ratings of R-1 (low) for Hypo Real Estate Holding AG and its operating subsidiary Hypo Real Estate Bank AG, all of which are now Under Review � Positive. DBRS has not changed the Under Review with Negative Implications status of its B (low) rating for Trust- Preferred Securities rating issued by Hypo Real Estate International Trust I. The rating action reflects DBRS's view that actions by the German state indicate continuing support for Hypo Real Estate. DBRS notes that the German parliament on March 20, 2009, passed a law that simplifies and expedites bank nationalizations. The German government has stated that it intends to inject capital into HRE and become a majority shareholder of the Group. In DBRS's view, the government actions will likely enable HRE to stabilize its franchise, reduce ongoing funding pressures and ultimately execute its restructuring plan. The government also continues to provide EUR87 billion in liquidity support to HRE. In the view of DBRS, the government's actions confirm the availability of comprehensive support to HRE. DBRS, however, notes that uncertainty remains regarding the longer-term outlook for HRE. The ratings review will focus on HRE's future franchise and underlying earnings generation ability, which have been negatively affected by its liquidity challenges, in DBRS's view. DBRS continues to view HRE as requiring substantial liquidity and capital support in order to re-emerge as a viable institution. The review will also take into consideration the impact of the Group's challenges over the past year on its franchise. While the comprehensive government support is the key driver supporting the Group's ratings, HRE's weak intrinsic profile remains a negative rating factor. The Under Review with Negative Implications status for the Trust-Preferred Securities of Hypo Real Estate International Trust I remains unchanged, as DBRS sees a risk that HRE may not make Capital Payments under the terms of these instruments, in order to preserve capital. The Group has recently announced that it will not make payments on certain hybrid securities issued by vehicles established by its Irish subsidiary DEPFA Bank plc. Issuer Debt Rated Rating Action Rating ------ ---------- ------------- ------ Hypo Real Estate Senior Unsecured UR-Pos. A (low) Holding AG Long-Term Debt Hypo Real Estate Short-Term Debt UR-Pos. R-1 (low) Holding AG Hypo Real Estate Senior Unsecured UR-Pos. A (low) Bank AG Long-Term Debt & Deposit Hypo Real Estate Subordinated Debt UR-Pos. BBB (high) Bank AG Hypo Real Estate Short-Term Debt UR-Pos. R-1 (low) Bank AG & Deposit Hypo Real Estate Certificats de UR-Pos. R-1 (low) Bank AG Depots Hypo Real Estate Trust Preferred UR-Neg. B (low) International Trust I Securities Hypo Public Senior Unsecured UR-Pos. A (low) Finance Bank Long-Term Debt & Deposit Hypo Public Senior UR-Pos. BBB (high) Finance Bank Subordinated Debt Hypo Public Short-Term Debt UR-Pos. R-1 (low) Finance Bank & Deposit DEPFA BANK plc Short-Term UR-Pos. R-1 (low) Promissory Notes PMK METALLKONSTRUKTIONS: Claims Registration Period Ends May 29 --------------------------------------------------------------- Creditors of PMK Metallkonstruktions GmbH have until May 29, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Thilo Streck Neuer Wall 86 20354 Hamburg Germany 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: PMK Metallkonstruktions GmbH Industriestrasse 5 21493 Schwarzenbek Germany Attn: Dietrich Poburski, Manager Billeweg 24 21465 Reinbek Germany QIMONDA AG: Seeks Potential Investors in Taiwan and Russia ---------------------------------------------------------- Michael Jaffe, Qimonda AG's insolvency administrator, is in talks with potential investors in Taiwan and Russia, Nicola Leske at Reuters reports citing newspaper Sueddeutsche Zeitung. Reuters relates in a report on Thursday the paper said those showing signs of interest were mostly state-owned companies while private investors had so far shown little interest in taking a stake in Qimonda. Deadline to Find Investors Extended On March 18, 2009, the Troubled Company Reporter, citing court documents, reported that Qimonda extended its March 31 deadline to find investors. The new deadline wasn't disclosed. Times-Dispatch quoted Mr. Jaffe as saying, "Various investors have signaled their interest, but as yet there are no binding offers on the table." Inspur Ends Talks to Acquire Stake Mark Lee Wai Yee and Frances Robinson at Bloomberg News disclosed that Inspur International Ltd. said it isn't interested in acquiring a stake in Qimonda. Inspur Group Co., Inspur International's parent, ended negotiations to acquire a stake in Qimonda, Bloomberg stated, citing Inspur International spokesperson Liu Xueheng. The report said that the talks ended after Qimonda's insolvency filing. According to the report, insolvency proceedings will start on April 1. The Financial Times disclosed that under a plan drafted by Mr. Jaffe, Inspur International would acquire 50% of Qimonda to help the company exit bankruptcy, creditors would have 15%, and Portugal and the German state of Saxony would take the remainder. Qimonda faces liquidation if it fails to find investors, Times- Dispatch noted, citing Mr. Jaffe. As reported in the Troubled Company Reporter on Jan. 26, 2009, Qimonda AG filed an application with the local court in Munich, Germany, on Jan. 23, 2009, to open insolvency proceedings. Their goal is to reorganize the companies as part of the ongoing restructuring program. According to Bloomberg News, Qimonda filed for insolvency after a plan announced in December for a loan of EUR325 million (US$418 million) from the German state of Saxony, Infineon Technologies AG, Europe's second-largest maker of semiconductors, and an unidentified Portuguese bank wasn't completed in time. About Qimonda AG Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. =========== G R E E C E =========== DRYSHIPS INC: Reports US$1.02 Bln Loss for Fourth Quarter 2008 -------------------------------------------------------------- DryShips Inc. reported unaudited financial and operating results for the fourth quarter and year ended December 31, 2008. Financial Highlights For the fourth quarter of 2008, the Company reported a Loss of US$1.02 billion or US$18.42 per share. Included in the fourth quarter results are a non-cash loss of US$700.5 million or US$12.68 per share related to the impairment of goodwill associated with the acquisition of Ocean Rig ASA, a loss related to contract termination fees and forfeiture of vessel deposits of US$160.0 million or US$2.90 per share, a non cash loss of US$177.0 million or US$3.20 per share associated with the valuation of the Company's interest rate swaps, a loss on the sale of one vessel of US$3.0 million or US$0.05 per share, amortization of stock based compensation of US$9.5 million or US$0.17 per share and a gain on the contract cancellation of one vessel of US$9.1 million or 0.16 per share. Excluding these items, Net Income would amount to US$23.5 million or US$0.43 per share. For the year ended December 31, 2008, the Company reported a Loss of US$361.3 million or US$8.11 per share. Included in the year ended December 31, 2008 results are a non-cash loss of US$700.5 million or US$15.71 per share related to impairment of goodwill associated with the acquisition of our wholly-owned subsidiary Ocean Rig ASA, a loss related to contract termination fees and forfeiture of vessel deposits of US$160.0 million or US$3.59 per share, a non cash loss of US$207.9 or US$4.66 per share associated with the valuation of the Company's interest rate swaps , a gain on the sale of eight vessels of US$223.0 million or US$5.00 per share, amortization of stock based compensation of US$31.5 million or US$0.71 per share and a gain on the contract cancellation of one vessel of US$9.1 million or 0.20 per share. Excluding these items, Net Income would amount to US$506.2 million or US$11.35 per share. Loan Covenants The Company has previously reported a definitive and a preliminary agreement with certain lenders relating to the waiver of breaches of loan covenants. The Company remains in discussions with its other lenders concerning current breaches of loan covenants. Pending the outcome of such discussions, the Company has reclassified approximately US$1.8 billion in debt as short-term. As reported in the Troubled Company Reporter-Europe on March 3, 2009, DryShips on Feb. 26 reached final agreement and received formal approval from Nordea Bank Finland Plc, DnB NOR Bank ASA and HSH Nordbank AG regarding the previously announced covenant waiver in connection with the US$800 million Primelead facility consistent with the terms previously announced on February 9, 2009. Terms of the Waiver As reported in the TCR-Europe on Feb. 20, 2009, DryShips reached preliminary agreement with Nordea to obtain a covenant waiver in connection with the US$800 million Primelead facility, which was used to partially finance the acquisition of Ocean Rig ASA. The outstanding loan amount under the facility is US$650 million. In accordance with the main terms of the waiver: (i) the Company will pay a restructuring fee of 0.15% on the outstanding loan amount under the facility plus an amount equal to 1.00% per annum on the loan outstanding for the period from January 9, 2009 until the Effective Date of the waiver agreement; (ii) US$75 million of principal repayment due February 2009 will be postponed until May 2009; (iii) the margin on the facility will increase by 1.00% to 3.125% per annum; and (iv) regular principal payments will resume as of August 2009. In addition, among other things, lender consent will be required for the acquisition of DrillShip Hulls 1837 and 1838, for new cash capital expenditures or commitments and for new acquisitions for cash until the loan has been repaid to below US$375 million. The waiver agreement Effective Date will not exceed August 12, 2009, at which time the Company expects to be in compliance with the restructured loan covenants. About DryShips Inc. DryShips Inc. (NASDAQ:DRYS) -- http://www.dryships.com-- based in Greece, is an owner and operator of drybulk carriers that operate worldwide. As of the day of this release, DryShips owns a fleet of 43 drybulk carriers comprising 7 Capesize, 29 Panamax, 2 Supramax and 5 newbuilding drybulk vessels with a combined deadweight tonnage of over 3.4 million tons, 2 ultra deep water semisubmersible drilling rigs and 2 ultra deep water newbuilding drillships. DryShips Inc.'s common stock is listed on the NASDAQ Global Market where trades under the symbol "DRYS." MARFIN INVESTMENT: S&P Gives Stable Outlook; Affirms 'BB' Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Greece-based Marfin Investment Group Holdings S.A. to stable from positive. At the same time, the 'BB' long-term and 'B' short-term counterparty credit ratings were affirmed. The outlook revision follows MIG's announcement of plans to acquire certain assets of Olympic Airways, Greece's national airline, which is currently being privatized. MIG intends to acquire Olympic's flying operations, technical base, and ground handling services for a total EUR177 million. These assets do not carry any liabilities or obligations from the previous legal structure. "Nevertheless, S&P believes that this transaction could ultimately increase MIG's debt levels," said Standard & Poor's credit analyst Luigi Motti. The outlook revision also takes into account the fact that the acquisition comes after MIG's announcement of its having withdrawn its application to the Central Bank of Cyprus to raise its stake in Marfin Popular Bank Public Co. Ltd. (MPB; BBB/Negative/A-3) to 30%. "We view this announcement as a strategic deviation from the factors that supported S&P's previous positive outlook," said Mr. Motti. Standard & Poor's expected MIG to have an increasingly banking- dominated investment profile (including the possibility of its eventual transformation back into a regulated bank holding company of a possibly higher-rated entity), supported by the sizable potential EUR5 billion capital increase it proposed in October 2008 to double its capital base. The ratings continue to reflect MIG's status as a listed investment holding company with portfolio concentration risk, as well as the mitigating impact of the company's current healthy net cash profile. "We believe that MIG will maintain its sound financial profile and conservative financial management, even if the development of the airline operations and other investments in the portfolio require further leveraging," said Mr. Motti. "We will closely monitor the investment portfolio's performance -- particularly that of the largest investment, Vivartia." The ratings would likely come under pressure if management's debt tolerance increased materially and S&P believed that net debt to investments (at fair market value) could exceed 25%. Negative rating actions could also result from a sharp unexpected deterioration in the financial profile or in the market value of any of the portfolio companies, particularly Vivartia. In S&P's view, MIG's strategic approach introduces an element of volatility into the company's strategy and may have a negative impact on the ratings, depending on the evolution of the financial profile. A positive rating action, although currently unlikely in S&P's opinion, could occur in the event of a significant share capital increase associated with an investment strategy resulting in a more diverse and higher-quality asset portfolio. An enhancement of MIG's financial profile could also be positive for the ratings in the longer term. ============= H U N G A R Y ============= * HUNGARY: IMF Approves EUR2.35 Billion Disbursement ---------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on Wednesday, March 25, completed the first review of Hungary's economic performance under a program supported by a 17-month Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of an amount equivalent to SDR2.11 billion (about EUR2.35 billion or US$3.19 billion), bringing total disbursements under the program to an amount equivalent to SDR6.32 billion (about EUR7.05 billion or US$9.56 billion). The SBA was approved on November 6, 2008 for an amount equivalent to SDR10.5 billion (about EUR11.76 billion or US$15.94 billion). The arrangement entails exceptional access to IMF resources, amounting to 1,015 percent of Hungary's quota. Following the Executive Board's discussion on Hungary, Mr. John Lipsky, First Deputy Managing Director and Acting Chair, stated: "Against the backdrop of a worsening economic outlook and the persistence of financial market stress, policy implementation has been steadfast and responsive. All quantitative performance criteria and indicative target and the structural performance criterion and benchmarks for the fourth quarter of 2008 were met. However, economic growth in partner countries and global financial market conditions are turning out to be worse than anticipated when the program was agreed in November 2008. To address these challenges, the policy settings under the program have been adapted to strike the right balance between preserving creditor confidence in the soundness of Hungary's fiscal and balance of payments positions and avoiding measures that would further deepen the recession. "The additional fiscal measures aim to strengthen fiscal sustainability while avoiding an excessively large negative impulse to demand, by combining permanent reductions in spending with a small rise in the 2009 budget deficit relative to the original program. The revised program puts additional emphasis on measures to safeguard essential social spending and help preserve financial stability, including ensuring the continuity of the safety net for banks, strengthening the remedial action and resolution regimes, and improving the capabilities of the Hungarian Financial Supervision Agency. Monetary policy will continue to target inflation over the medium term, while being prepared to act quickly as needed to mitigate risks to financial stability. "In the context of the ongoing turmoil in global financial markets, strong implementation of the program will bolster Hungary's economic prospects, supported by large external financial support that provides reassurance that Hungary's external obligations can be met. The joint financial assistance being provided by the IMF, the European Union, the World Bank, and other multilateral partners sends a strong signal of the international community's confidence that, with the consistent implementation of the program, Hungary will weather the current difficulties," Mr. Lipsky stated. ============= I R E L A N D ============= CORSAIRFINANCE NO 6: S&P Lifts Rating on Notes to 'AA+' from 'B-' ----------------------------------------------------------------- Standard & Poor's Ratings Services raised to 'AA+' from 'B-' its credit rating on the EUR100 million variable-rate secured portfolio credit-linked notes series 17 issued by CorsairFinance (Ireland) No. 6 Ltd. The rating action follows an upward revision to the attachment point for these notes, which is now sufficient, in S&P's opinion, to support a 'AA+' rating. SVG DIAMOND: Moody's Cuts Ratings on Two Classes of Notes to Low-B ------------------------------------------------------------------ Moody's Investors Service has downgraded and left under review for possible downgrade its ratings of seven classes of notes issued by SVG Diamond Private Equity II. The transaction is a CDO referencing a portfolio of shares of private equity funds. SVG Diamond Private Equity II is a bankruptcy remote special purpose company incorporated with limited liability in Ireland for the sole purpose of acquiring its interest in the portfolio and certain other assets securing the notes, and issuing the notes. The rating actions are primarily a result of the deterioration of the performance of the private equity asset class and the amount of unfunded commitments. The presence of a liquidity facility renders the risk of a default on an interest payment remote. The rating actions are: SVG Diamond Private Equity II PLC: (1) EUR55,000,000 Class A-1 Floating Rate Notes due 2024 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Action Date: 22 February 2006, rating assigned (2) US$71,600,000 Class A-2 Floating Rate Notes due 2024 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Action Date: 22 February 2006, rating assigned (3) EUR76,500,000 Class B-1 Floating Rate Notes due 2024 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Action Date: 22 February 2006, rating assigned (4) US$40,000,000 Class B-2 Floating Rate Notes due 2024 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Action Date: 22 February 2006, rating assigned (5) US$47,800,000 Class C Floating Rate Deferrable Notes due 2024 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Action Date: 22 February 2006, rating assigned (6) EUR43,000,000 Class M-1 Fixed Rate Notes due 2024 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Action Date: 22 February 2006, rating assigned (7) US$20,300,000 Class M-2 Fixed Rate Notes due 2024 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Action Date: 22 February 2006, rating assigned In reaching its rating decisions, Moody's considered these important factors: (1) Cash The current amount of cash in the structure has been compared to the initial projections. Distributions and drawn-downs have been projected until maturity. (2) NAV The Net Asset Value of the portfolio as reported by the manager has been compared to the initial projections. Based on the fair value accounting (FASB 157), the NAV presents an aggregated performance metrics. (3) Public Information Regarding Private Equity Private-equity funds typically disclose a limited amount of information to the parties involved. Moody's examined the recent disclosure of large publicly quoted buy-out funds with regards to the mark-downs of outstanding Leveraged Buy Outs and Venture Capital portfolios and used them as guidelines to understand the state of the private equity industry. (4) Public Equity Unlike Private Equity, for which historical performance data is available only for the latest 25 years, Public Equity indices provide performance information over a much longer period. As an example, the LPX 50, an index of 50 major publicly traded Private Equity companies, is approximately 78% down since Febuary 2006 (deal inception) and 82% down from its peak in May 2007. In the absence of transparent Private Equity performance data over this time period Moody's can look to Public Equity as a proxy. (5) Manager's View The transaction manager has been asked to provide the projected levels of distribution, draw-downs and NAV. Moody's believes that the manager is in a unique position to time the various material elements that impact the cash flow. Moody's applied stressed to the projected levels from managers. (6) Liquidity Position By nature, private-equity investors commit capital that will be drawn in the future. Historically, the full amount of committed capital has not been drawn by the Private Equity funds. Moody's believes that the likelihood of a commitment to be drawn during a systemic credit crisis is high. Moody's has developed a monitoring model for this type of transaction. The model first estimates the cash available over the life of the deal. It also models the liquidity facility dynamically. Based on the factors listed above, Moody's defined three states of future portfolio performance: optimistic, baseline and pessimistic and assessed the probability of losses for each tranche in each of the three states. Haircuts on the projected distributions are in the range between 0% and 40%, depending on the state of the portfolio. ========= I T A L Y ========= IT HOLDING: S&P Withdraws 'D' Long-Term Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it withdrew its 'D' (default) long-term corporate credit rating on Italy-based fashion company IT Holding SpA at the company's request. At the same time, the 'D' senior secured debt rating and associated recovery rating on the EUR185 million senior secured notes maturing in 2012 issued by IT Holding Finance S.A. were also withdrawn at the company's request. Prior to withdrawal, the recovery rating on the notes was '5', indicating S&P's expectation of modest (10%-30%) recovery for noteholders in the event of a payment default. S&P were not in a position to update S&P's recovery analysis before withdrawing the issue and recovery ratings because of a lack of updated financial information. This was due the placement of the company into administration (amministrazione straordinaria) under Italian Law (Legge Marzano), which S&P understand allows for the postponement of financial reporting. On Sept. 30, 2008, the group had total unadjusted debt of EUR354 million. On Feb. 27, 2009, S&P lowered the long-term corporate credit rating on ITH and the senior secured debt rating on IT Holding Finance SpA to 'D' following the placement of ITH and its main subsidiaries into administration. =================== K A Z A K H S T A N =================== ALLIANCE BANK: S&P Cuts Counterparty Credit Rating to 'C/C' ----------------------------------------------------------- Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. ASIA TORG: Creditors Must File Claims by May 1 ---------------------------------------------- LLP Asia Torg Service has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Sankibai Batyr Ave. 167-5 Aktobe Aktube Kazakhstan BAT COTTON: Creditors Must File Claims by May 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Bat Cotton insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Baizakov Str. 273b Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan BTA BANK: S&P Cuts Counterparty Credit Rating to 'C/C' ------------------------------------------------------ Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. BTA IPOTEKA: S&P Downgrades Counterparty Credit Rating to 'C/C' --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. CARDINAL CORPORATION: Creditors Must File Claims by May 1 --------------------------------------------------------- LLP Cardinal Corporation Kz has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Turgenev Str. 106/1-37 Aktobe Aktube Kazakhstan JAISAN LLP: Creditors Must File Claims by May 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Jaisan insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Satpayev Str. 16 Aktobe Aktube Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Aktube Satpayev Str. 16 Aktobe Aktube Kazakhstan KAZ HOLDING: Creditors Must File Claims by May 1 ------------------------------------------------ LLP Kaz Holding Group has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro District 11a, 27-77 Karaganda Kazakhstan MAIRA LLP: Creditors Must File Claims by May 1 ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Maira insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Gogol Str. 1-4 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 52-41-31 The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan NIMIR HOLDINGS: Creditors Must File Claims by May 1 --------------------------------------------------- LLP Nimir Holdings has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro District "Bayan-aul", 57a Almaty Kazakhstan OZAT ESKER: Creditors Must File Claims by May 1 ----------------------------------------------- LLP Ozat Esker has declared insolvency. 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 ROZOVY FLAMINGO: Creditors Must File Claims by May 1 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Rozovy Flamingo insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan TEMIRBANK JSC: S&P Cuts Counterparty Credit Rating to 'C/C' ----------------------------------------------------------- Standard & Poor's Ratings Services has lowered its counterparty credit ratings on three banks and one mortgage company in the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank J.S.C. and BTA's subsidiaries Temirbank JSC and BTA Ipoteka Mortgage Co. to 'C/C' from 'CCC+/C' and Alliance Bank JSC to 'C/C' from 'B/B'. The counterparty credit ratings on these entities remain on CreditWatch with negative implications, where they were placed on March 20, 2009. "The rating actions reflect our view that there is now a very high probability that BTA and its subsidiaries and Alliance will undertake debt restructurings, and that they are now less likely to gain support from the Kazakh government to meet their respective debt obligations according to their terms," said Standard & Poor's credit analyst Annette Ess. S&P understand that the Kazakh government is not willing to provide support for the two banks to service their debt obligations on a timely basis, which, given the highly distressed financial condition of the banks, in S&P's view increases the likelihood of a debt restructuring. S&P's long-term ratings on BTAI and Temirbank are constrained by S&P's ratings on BTA. S&P understands that the state-owned Samruk Kazyna welfare fund's majority takeover of Alliance has still not been completed and is likely to take some time. S&P no longer includes an additional notch above Alliance's stand-alone credit profile due to S&P's view of the lower probability of government support. The rating actions also reflect S&P's view of the continuing downward pressure on BTA and its subsidiaries and Alliance's stand-alone credit profiles due, among other things, to significant asset-quality deterioration, which in S&P's view is depleting their capitalization. Continuing funding and liquidity challenges and the instability of deposits also influenced the rating actions. S&P believes these entities are affected by the current global liquidity crisis and a severe domestic economic slowdown, both of which continue to erode liquidity levels and asset quality. "We expect to resolve the CreditWatch placements on BTA, Alliance, Temirbank, and BTAI once S&P obtain information about a possible debt restructuring, or evidence of inability to meet relevant debt obligations according to their terms, or about the implications of Samryk Kazyna's ownership for these entities' respective creditworthiness, strategies, and financial flexibility," said Ms. Ess. If debt restructuring is imminent or the institutions do not meet debt obligations according to their terms, S&P's criteria generally require us to lower the ratings to 'D'. Barring any further deterioration in their operating environments, S&P may raise the ratings on these entities if either future government support or improvements in their own stand-alone credit profiles help them to avoid a debt restructuring and allow them to meet their obligations in a timely manner. VK PROM: Creditors Must File Claims by May 1 -------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP VK Prom Stroy Tech 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 =================== K Y R G Y Z S T A N =================== HAN-TENGRI INSURANCE: Creditors Must File Claims by April 10 ------------------------------------------------------------ Creditors of Insurance CJSC Han-Tengri have until April 10, 2009, to submit proofs of claim. The company can be reached at: Insurance CJSC Han-Tengri Tel: (+996 312) 29-81-11 PHARM CONSULTING: Court Names Insolvency Manager ------------------------------------------------ The Inter-District Court of Bishkek for Economic Issues appointed A. Ybyshov as Insolvency Manager for LLC Pharm Consulting. He can be reached at: A. Ybyshov Moskovskaya Str. 151 Bishkek Kyrgyzstan The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ED-847/05mbc2. =================== L U X E M B O U R G =================== ASHWELL RATED: S&P Lifts Rating on EUR50MM Notes to 'A+' from 'B-' ------------------------------------------------------------------ Standard & Poor's Ratings Services raised to 'A+' from 'B-' its credit rating on the EUR50 million floating-rate credit-linked notes series 12 issued by Ashwell Rated S.A. The rating action follows an upward revision to the attachment point for these notes, which is now sufficient, in S&P's opinion, to support S&P's 'A+' rating. TENZING CFO: Moody's Cuts Ratings on 5 Classes of Notes to Low-B ---------------------------------------------------------------- Moody's Investors Service has downgraded and left under review for possible downgrade its ratings of six classes of notes issued by Tenzing CFO, S.A. The transaction is a CDO referencing a portfolio of investments of two different types: shares of private equity funds and shares in the equity of privately held corporations. Tenzing is a bankruptcy remote special purpose company incorporated with limited liability in Luxembourg for the sole purpose of acquiring its interest in the portfolio and certain other assets securing the notes, and issuing the notes. The rating actions are primarily a result of the deterioration of the performance of the private equity asset class, the lack of sufficient and timely information about the transaction, and the large amount of unfunded commitments. The presence of a liquidity facility renders the risk of a default on an interest payment remote. The rating actions are: Tenzing CFO S.A.: (1) US$55,000,000 Class A Funding Floating Rate Notes due 2018 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade (2) US$16,000,000 Class B1 Floating Rate Notes due 2018 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade (3) EUR21,000,000 Class B2 Floating Rate Notes due 2018 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade (4) US$33,000,000 Class C Floating Rate Notes due 2018 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade (5) US$8,500,000 Class D1 Floating Rate Notes due 2018 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade (6) EUR10,000,000 Class D2 Floating Rate Notes due 2018 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Action Date: 22 December 2008, rating on review for possible downgrade In reaching its rating decisions, Moody's considered these important factors: (1) Cash The current amount of cash in the structure has been compared to the initial projections. Distributions and drawn-downs have been projected until maturity. (2) NAV The Net Asset Value of the portfolio as reported by the manager has been compared to the initial projections. Based on the fair value accounting (FASB 157), the NAV presents an aggregated performance metrics. (3) Public Information Regarding Private Equity Private-equity funds typically disclose a limited amount of information to the parties involved. Moody's examined the recent disclosure of large publicly quoted buy-out funds with regards to the mark-downs of outstanding Leveraged Buy Outs and Venture Capital portfolios and used them as guidelines to understand the state of the private equity industry. (4) Public Equity Unlike Private Equity, for which historical performance data is available only for the latest 25 years, Public Equity indices provide performance information over a much longer period. As an example, the LPX 50, an index of 50 major publicly traded Private Equity companies, is approximately 66% down since January 2005 (deal inception) and 82% down from its peak in May 2007. In the absence of transparent Private Equity performance data over this time period Moody's can look to Public Equity as a proxy. (5) Manager's View The transaction manager has been asked to provide the projected levels of distribution, draw-downs and NAV. Moody's believes that the manager is in a unique position to time the various material elements that impact the cash flow. Moody's applied stressed to the projected levels from managers. (6) Liquidity Position By nature, private-equity investors commit capital that will be drawn in the future. Historically, the full amount of committed capital has not been drawn by the Private Equity funds. Moody's believes that the likelihood of a commitment to be drawn during a systemic credit crisis is high. Moody's has developed a monitoring model for this type of transaction. The model first estimates the cash available over the life of the deal. It also models the liquidity facility dynamically. Based on the factors listed above, Moody's defined three states of future portfolio performance: optimistic, baseline and pessimistic and assessed the probability of losses for each tranche in each of the three states. Haircuts on the projected distributions are in the range between 0% and 40%, depending on the state of the portfolio. An additional 30% haircut on the distribution for the next three years was added to account for the possible data noises in performance reports that were referenced in the analysis. ===================== N E T H E R L A N D S ===================== CREDIT EUROPE: Moody's Cuts Bank Financial Strength Rating to 'D' ----------------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating of Credit Europe Bank N.V. to D from D+ and its long-term debt and deposit ratings to Ba2 from Baa3. The short-term debt and deposit ratings were downgraded to Not Prime from Prime-3. The BFSR and the long-term ratings were placed on review for possible further downgrade. Moody's rating action was triggered by the worsening of economic conditions in CEB N.V.'s main markets combined with the bank's high risk profile, which is characterized by sizeable exposures to emerging markets, some pressure on asset quality, significant borrower concentrations that could weaken capital ratios. Based on deposits collected in Western Europe (deposits from the Netherlands, Belgium and Germany represent 80% of the bank's funding), CEB N.V. engages in high margin lending to SMEs and consumers outside the Eurozone -- emerging markets, specifically Romania, Turkey, Russia and, to a lesser extent, Ukraine, together represent 63% of the bank's total on- and off-balance sheet exposures. In Moody's view, these activities, which have been developed at a rapid pace, are highly vulnerable to the accelerating adverse economic developments in CEB N.V.'s key markets, in particular in Eastern Europe. Given CEB N.V's loan portfolio composition, the rating agency expects a deterioration of the bank's asset quality going forward. Additionally, Moody's cautions about the risks inherent to CEB N.V.'s significant borrower concentrations, mainly to Romanian, Turkish and Russian counterparties, compared with the bank's Tier 1 ratio. The rating agency highlights that the bank's Tier 1 ratio (8.4% in 2007) provides only a limited buffer against potential losses, which may materialize in the near future. Moody's adds that CEB N.V.'s deposits have shown some relative resilience during September and October 2008 helped by increased rates and close monitoring by the bank. Over the year 2008, total customer deposits increased by 46%. However Moody's cautions that deposits at foreign-owned banks may be subject to higher volatility during times of crisis. In addition, in Moody's view, the bank's funding costs are likely to remain higher going forward. The review will focus on the bank's ability to: -- Limit the potential deterioration of its asset quality; -- Reduce its borrower concentrations; -- Increase its capitalization ratios and loss-absorption capacity; -- Maintain its deposit base; and -- Balance its deposit and lending activities. The latest rating action on this issuer was implemented on December 4, 2006 when Moody's downgraded the BFSR of Finansbank (Holland) -- CEB N.V.'s former name --to D+ from C- and its long- term debt and deposit ratings to Baa3 from Baa2; both the ratings carried stable outlooks. The short-term debt and deposit ratings were downgraded to Prime-3 from Prime-2. CEB N.V., based in Amsterdam, the Netherlands, reported total consolidated assets of EUR9.54 billion and shareholders' equity of EUR0.65 billion at December 31, 2008. CEB N.V. is wholly owned by Fiba Holding AS (unrated), a holding company based in Turkey and mainly active in financial services. DEMIR-HALK BANK: Moody's Lowers Financial Strength Rating to 'D' ---------------------------------------------------------------- Moody's Investors Service has downgraded to D from D+ the Bank Financial Strength Rating of Demir-Halk Bank (Nederland) N.V. At the same time, the bank's long-term debt and deposit ratings were downgraded to Ba2 from Ba1. The BFSR and the long-term ratings were placed on review for possible further downgrade. The Non- Prime short-term debt and deposits ratings are unchanged. Moody's rating action was triggered mainly by the worsening economic environment combined with DHB's considerable asset concentrations, high exposure to emerging markets, lower profitability and by a slight decrease of the capital base. DHB is primarily active in emerging markets in corporate lending and commodity and structured trade finance lending, and more specifically in Turkey and Russia which together account for 49% of total assets. Moody's notes that DHB has developed lending activities in volatile markets outside the Euro zone. Although the bank's assets are primarily denominated in Euro and US dollar, and the bank maintains active hedging policies, it is Moody's understanding that DHB's results may still be indirectly affected by adverse foreign exchange currency movements. Moody's also cautions about the risk inherent to DHB's significant borrower concentrations, mainly to Turkish and Russian counterparties including banks, holding companies and corporates. DHB has traditionally sustained a high capital base throughout the years. Although still remaining at high level in 2008, it is Moody's understanding that DHB's capital base has decreased, thereby reducing the bank's loss-absorption capacity against the backdrop of a deteriorating economic environment, particularly in those countries where the bank is most exposed. Furthermore, given DHB's specialization in the competitive trade finance segment, the bank's main revenue sources may be challenged by decreasing financing demand as evidenced by the significant reduction notably of Turkish exports in recent months. In addition, lending margins have decreased partly because of the bank's decision to maintain high liquidity cushion. Overall, in Moody's view, the bank's profitability may therefore further decline going forward. Moody's adds that DHB's deposits have shown some relative resilience during September and October 2008 partly helped by increased deposit rates. The bank reports that those rates have started to decrease since the beginning of 2009. Yet, Moody's cautions that deposits at foreign-owned banks may be subject to higher volatility during times of crisis. In addition, the bank's funding costs are likely to remain high going forward. The review will focus on DHB's ability to: -- Limit the potential asset quality deterioration from its securities and loan portfolio -- Reduce its borrower concentrations -- Maintain high capitalization ratios and loss-absorption capacity -- Preserve adequate and sustainable levels of profitability -- Maintain its deposit base The previous rating action was on November 15, 2007 when Moody's assigned a D+ BFSR, a Ba1 long-term debt and deposit ratings, with stable outlook, and Non-Prime short-term debt and deposits ratings to DHB. Based in Rotterdam, DHB has reported total consolidated assets of EUR1.909 billion, reported shareholder's equity of EUR212 million -- as at December 31, 2007. DHB is 70% owned by HCBG (a holding company active in real-estate, construction and financial services in Turkey) and 30% owned by Halkbank, the seventh-largest bank in Turkey (not rated). =========== N O R W A Y =========== NORSKE SKOG: To Buy Back US$150 Million of October 2011 Bond Loan ----------------------------------------------------------------- Norske Skog on Thursday, March 26, authorized Citi and Deutsche Bank to offer buy-back of up to US$150 million (par value) of a bond loan maturing on October 15, 2011. The offer will be in the range of 68 to 75 per cent of par value, and will take place as an auction. The offer is made to all current bond owners, who will have a deadline of 21 working days to accept the offer. If the amount accepted amounts to more than US$150 million, a pro-rata downward adjustment will be made according to set principles. The bond loan has a coupon rate of 7 5/8 per cent and was initially US$600 million. Norske Skog bought back US$141 million (par value) in 2008, and the residual loan is at present US$459 million. The loan is listed on the Luxembourg Stock Exchange with ISIN numbers USR80036AN77 (Luxembourg listing) and US656533AA45. Norske Skogindustrier ASA -- http://www.norskeskog.com-- is a Norway-based producer of printing paper. The Company is primarily engaged in the production of newsprint and magazine paper, as well as directories, inserts, flyers, catalogs and books. Its product range includes newsprint paper marketed under the Nornews brand; directory paper, including BioBio Directory and Tasman; improved newsprint paper, under the Norbright, Norstar and NorX names; super calendared (SC) paper, for the Norsc products; machine finish coated paper (MFC) sold under the Norset brand name, and lightweight coated paper (LWC), which is marketed under the Norcote brand name. Norske Skogindustrier is operational through wholly and partially owned manufacturing plants globally, including Europe with locations in Norway, France, Austria, Germany, the Netherlands and the Czech Republic; Asia; South America, and Australasia, which comprises Australia and New Zealand. It also has sales offices and agents around the world. * * * As reported in the Troubled Company Reporter-Europe on Sept. 25, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long- term corporate credit rating on Norway-based forest product company Norske Skogindustrier ASA (Norske Skog). The 'B' short- term corporate credit rating was affirmed. S&P removed the long- term rating from CreditWatch where it was originally placed with negative implications on April 21, 2008. The outlook is negative. NORSKE SKOG: S&P Retains 'BB-' Rating on Repurchase Offer --------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and outlook on Norway-based forest product company Norske Skogindustrier ASA (Norske Skog; BB-/Negative/B) remain unchanged following an announcement of an offer to repurchase up to US$150 million (about NOK950 million) of its US$600 million (currently US$459 million outstanding) notes maturing in 2011. S&P sees the exchange offer as opportunistic as opposed to distressed, hence not resulting in default under S&P's criteria. This is based on S&P's expectations, as reflected in S&P's current ratings, that Norske Skog will not face insolvency, bankruptcy, or payment default in the near term, absent the transaction. Specifically, the company has robust financial assets due to recent disposals, and S&P does not expect it to post negative discretionary cash flows. ============= R O M A N I A ============= * ROMANIA: EUR12.95 Billion IMF Loan Agreed ------------------------------------------- Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), on Wednesday, March 25, issued the following statement: "An IMF staff mission and the Romanian authorities have today reached agreement, subject to approval by IMF Management and the Executive Board, on an economic program supported by a EUR12.95 billion (about US$17.51 billion) loan under a two-year Stand-By Arrangement. The Executive Board is expected to meet to discuss the program in the coming weeks. Romania would be able to draw EUR5 billion (about US$6.76 billion) upon Board approval. "We welcome the proactive approach by the Romanian authorities in the face of emerging financial tensions, which puts Romania on a good footing to face potential difficulties ahead. The objective of the policy package is to cushion the effects of the sharp drop in private capital inflows while implementing policy measures to address the external and fiscal imbalances and to strengthen the financial sector. "Core measures under the program are designed to strengthen fiscal policy further to reduce the government's financing needs and improve long-term fiscal sustainability, thus preparing Romania for eventual entry into the euro zone. In addition, the program aims to maintain adequate capitalization of banks and liquidity in domestic financial markets; bring inflation within the central bank's target and maintain it there; and secure adequate external financing and improving confidence. The program contains explicit provisions to increase allocations for social programs, as well as protection under the reforms for the most vulnerable pensioners and public sector employees at the lower end of the wage scale. These strong policies justify the exceptional level of access to IMF resources�equivalent to around 1,127 percent of Romania's quota�and deserve the support of the international community. "The IMF has worked in close coordination with the European Union (EU), the World Bank, and regional and other multilateral financial institutions, on supporting Romania. The EU stands ready to provide a loan of EUR5 billion (about US$6.76 billion), following approval by the European Commission and the European Council; and the World Bank has agreed to provide EUR1 billion (about US$1.35 billion), subject to approval from its Executive Board. Support from the European Bank for Reconstruction and Development (EBRD) and other multilaterals provide an additional EUR1 billion (about US$1.35 billion). "In conjunction with Romania's efforts and multilateral financial support, we are actively consulting with banks and other financial institutions operating in the country so that they will continue to provide adequate financing to Romania," Mr. Strauss-Kahn said. =========== R U S S I A =========== BELORETSKIY LESOKOMBINAT: Creditors Must File Claims by May 13 -------------------------------------------------------------- Creditors of LLC Beloretskiy Lesokombinat (Forestry) have until May 13, 2009, to submit proofs of claims to: O. Ilyin Insolvency Manager Kommunisticheskaya St. 38/88 Sterlimak 453120 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07�10521/2008-G-MOG. BRATYA-STROY LLC: Court Names Temporary Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow appointed V.Kofnov as Temporary Insolvency Manager for LLC Bratya-Stroy (TIN 7705318959, PSRN 1037739386244) (Construction). The case is docketed under Case No. A40�93971/08�88-246B. He can be reached at: Apt. 211 Velozavodskaya St.9 115280 Moscow Russia The Debtor can be reached at: LLC Bratya-Story Building 15 Nizhnie Polya St. 29 109382 Moscow Russia ELEKTRONIKA OJSC: Creditors Must File Claims by May 13 ------------------------------------------------------ Creditors of OJSC Elektronika Commercial Bank (TIN 7710018862, Registration Number 488) have until May 13, 2009, to submit proofs of claims to: Investment Insurance Agency Acting Insolvency Manager Post User Box 48 109052 Moscow Russia Tel: 8-800-200-08-05 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40�1392/09�95-4�B. The Debtor can be reached at: OJSC Elektronika Commercial Bank Pyzhevskiy pereulok 6 119017 Moscow Russia GALLERY MEDIA: Moody's Cuts Corporate Family Rating to 'Caa2' ------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Gallery Media Group Ltd. and the existing bond rating of Gallery Capital SA to Caa2 from Caa1. The outlook on the ratings was changed to negative from stable, reflecting the agency's concerns over the Russian outdoor market development in the next twelve months. Given significant downturn of the market conditions it is Moody's opinion that Gallery may face difficulties servicing its debt given weakening cash flow generation and limited visibility with regard to sales, profitability and working capital requirements. Moody's note that the company's debt consisting mainly of US$175 million senior secured notes and US$116 million (as at end September, 2008) PIK loan is denominated in foreign currency whereas revenues are received in Russian roubles. While positively noting long-term structure of the company debt whereby both facilities have bullet repayments in May and November 2013, respectively, Moody's note that the devaluation of the functional currency has already resulted in the accounting foreign exchange loss and deterioration of the coverage and leverage metrics. Moody's also notes that in the absence of recapitalization and external financing, and given that the unfavorable market conditions persist beyond 2009, Moody's see a higher probability of default in the second half of 2010. Moody's previous rating action on Gallery was on June 17, 2008 when the rating agency changed the outlook on the Caa1 corporate family rating of Gallery Media Group Ltd. and the existing bond rating of Gallery Capital SA to stable from positive. Gallery's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry; ii) the capital structure and financial risk of the company; iii) the projected performance of the company over the near to intermediate term; and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Gallery's core industry and Gallery's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Moscow, Russia, Gallery currently operates the second-largest outdoor advertising network after News Outdoor in Russia and Ukraine (based on revenues and the number of advertising faces owned). During the nine months of 2008, Gallery reported revenues of US$156.5 million and adjusted for imputed tax EBITDA of US$ 43.7 million. MEGA-STROY LLC: Creditors Must File Claims by May 13 ---------------------------------------------------- Creditors of LLC Mega-Stroy (TIN 7116127778, PSRN 1057101586794) (Construction) have until May 13, 2009, to submit proofs of claims to: R. Budin Insolvency Manager Office 608 Ryazanskaya St. 1 300026 Tula Russia The Arbitration Court of Tulskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68�3021/A-08. The Debtor can be reached at: LLC Mega-Stroy Trudovue Rezervy St. 31/8 Novomoskovsk Tulskaya Russia SERVIS-M LLC: Creditors Must File Claims by April 13 ---------------------------------------------------- Creditors of LLC Gaz Prom Energo Servis-M (TIN 7726314521, PSRN 1027739806346) (Repair and Construction) have until April 13, 2009, to submit proofs of claims to: M. Khasanova Temporary Insolvency Manager Post User Box 345 115230 Moscow-230 Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure. The case is docketed under Case No. A40�84785/08�73� 286B. The Debtor can be reached at: LLC Gaz-Prom-Energo-Servis-M Kirovogradskaya St. 5 Moscow Russia SIBIRTELECOM OAO: Fitch Affirms LT Issuer Default Rating at 'B+' ---------------------------------------------------------------- Fitch Ratings has affirmed OAO Sibirtelecom's Long-term Issuer Default rating at 'B+' and Short-term IDR at 'B'. The Outlook on the Long-term IDR is Stable. Sibir is an incumbent with strong market shares in key sectors of operation and an established business franchise. Like its Svyazinvest-group peers, its operations benefit significantly from its wide backbone and 'last mile' network infrastructure, as well as from a benign regulatory environment in Russia. Fitch believes that Sibir's revenue should remain resilient in the prevailing economic downturn, supported by broadband and mobile revenue growth as well as local voice segment tariff indexation. Resilient revenue stream and cost control measures introduced by Sibir should help maintain the EBITDA margin at the 2007 level, in a range of 34%-35%. The ratings are constrained by considerable refinancing risks, with short-term debt representing about 31% of the total debt at end-9M08, as estimated by Fitch. Cash and untapped credit facilities at FYE08 did not fully cover refinancing risks in 2009. The agency believes that Sibir, similar to its Svyazinvest peers, has significant room to improve free cash flow generation cutting capex considerably, therefore releasing cash for debt repayments. Sibir has already committed to approximately 30% capex deferral in 2009 and, in the agency's view, can further reduce capex without compromising its market position. By Fitch's estimate, capex reduction of a further 20%-30% should make Sibir deeply FCF- positive in 2009. The ratings take into consideration the ownership-driven relationships of Sibir's main shareholder, state-controlled OAO Svyazinvest, with state banks. Fitch believes these relationships should aid Svyazinvest's 2008-2009 refinancing negotiations to the benefit of group companies, including Sibir. Fitch believes that a tight credit environment and a significant capex program had limited Sibir's debt reduction efforts in 2008, with leverage estimated to have remained at the 2007 level of 1.7x. In the agency's view, debt reduction in 2009 should take the leverage to below 1.7x as Sibir seeks to mitigate refinancing risks. This leverage of under 1.7x is fairly low for the current ratings and should help secure funding from banks. STEKLO-FIN LLC: Court Names Temporary Insolvency Manager -------------------------------------------------------- The Arbitration Court of Ryazanskaya appointed Ye. Porkhunov as Temporary Insolvency Manager for LLC Steklo-Fin (TIN 6231046765, PSRN 1026201261261) (Hollow Glassware Production). The case is docketed under Case No. A54�344/2009, S19. He can be reached at: Office 14 Prospect Zavrazhnogo 5 Ryazan' Russia The Debtor can be reached at: LLC Steklo-Fin Frunze St. 11 Ryazan' Russia TRANS-LES-KOM LLC: Creditors Must File Claims by May 13 ------------------------------------------------------- Creditors of LLC Trans-Les-Kom (TIN 2463080247, PSRN 1062463058305) (Lumbering) have until May 13, 2009, to submit proofs of claims to: Ye. Katser Insolvency Manager Post User Box 12161 Russia The Arbitration Court of Krasnoyarskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33�17841/2008. The Court is located at: The Arbitration Court of Krasnoyarskiy Lenina St. 143 660049 Krasnoyarsk Russia The Debtor can be reached at: LLC Trans-Les-Kom Vysotnaya St. 4 Krasnoyarsk 660062 Krasnoyarskiy Russia UNECH-MASLO-ZAVOD OJSC: Creditors Must File Claims by May 13 ------------------------------------------------------------ Creditors of OJSC Unech-Maslo-Zavod (Butter-Making Plant) have until May 13, 2009, to submit proofs of claims to: S. Artamonov Insolvency Manager Post User Box 223 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�5931/2008�32. The Debtor can be reached at: OJSC Unech-Maslo-Zavod Kalinina St. 10 Unecha Bryanskaya Russia VTOR-TSVET-MET PLANT: Creditors Must File Claims by April 13 ------------------------------------------------------------ Creditors of OJSC Vtor-Tsvet-Met Plant (Nonferrous Metals) have until April 13, 2009, to submit proofs of claims to: N. Adamov Temporary Insolvency Manager Post User Box 11 Building 1 Molodogvardeyskaya St. 9 121467 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure. The case is docketed under Case No. A41�3831/09. The Debtor can be reached at: OJSC Vtor-Tsvet-Met Plant Tsentralnaya St. 110 Elektrougli Noginskiy 142455 Moskovskaya Russia WOOD-PROCESSING COMPANY: Creditors Must File Claims by April 13 --------------------------------------------------------------- Creditors of LLC Wood-Processing Company Plus (TIN 3804033795, PSRN 1063804000248, RVC 380401001) have until April 13, 2009, to submit proofs of claims to: V. Sokolov Insolvency Manager Post User Box 51 Lyzina St. 28 664009 Irkutsk Russia The Arbitration Court of Irkutskaya will convene on Aug. 17, 2009, to hear bankruptcy proceedings. The Debtor can be reached at: LLC Wood-Processing Company Plus Druzhby St. 45 Bratsk 665710 Irkutskaya Russia * Fitch Takes Various Rating Actions on Nine Russian Banks ---------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer k (PSB, 'B+'), Uralsib Bank (B+), Uralsib Leasing Group ('B+') and Bank Zenit ('B+'). Fitch has affirmed Russian Standard Bank's Long-term IDR at 'BB-' (BB minus) with a Negative Outlook, while URSA Bank's Long-term IDR of 'B+' remains on Rating Watch Positive. The negative rating actions on the banks' IDRs reflect ongoing and likely future asset quality deterioration driven by the difficult Russian operating environment, the banks' generally moderate current loss absorption capacity and, to varying degrees, uncertainty as to contingency recapitalization plans. The downgrades of MDM and Alfa reflect the already significant loan impairment at those institutions, risks relating to substantial foreign currency lending and the general deterioration in the operating environment. At the same time, MDM and Alfa continue to be rated one notch higher than most other major privately-owned Russian banks due to their slightly higher loss absorption capacity (based on reserves and capital numbers in the banks' March statutory accounts), Fitch's somewhat greater comfort with respect to shareholders' ability to contribute new equity, if needed, and Fitch's more positive view of the quality of the two banks' management, particularly risk management. The RWP on URSA reflects the bank's planned merger with MDM in Q309, and Fitch's current expectation that the merged bank will be rated 'BB-' (BB minus). However, in case of a further deterioration of asset quality at MDM and/or a marked weakening of URSA's financial position, this expectation could be revised downwards, removing the upside potential for URSA's ratings. The affirmation of RSB's Long-term IDR reflects the bank's substantial capital and liquidity cushions, which would be sufficient to absorb a considerable increase in loan impairment and should enable the bank to repay maturing wholesale funding, respectively. At the same time, RSB's Individual Rating has been downgraded to 'D' from 'C/D' as a result of its now very high reliance on funding from the Central Bank of Russia, which not only supports the bank's rouble liquidity position, but has also been used as the means for the bank to cover its short on-balance sheet FX position. A sharp deterioration in asset quality or an inability of the bank to cover its FX position at a reasonable price in the future could result in a downgrade of RSB's Long-term IDR. Fitch currently forecasts that Russia's GDP will contract by 3% in 2009. Reduced economic activity, coupled with sharp falls in asset prices, a marked tightening of liquidity in the corporate sector, the sizeable depreciation of the RUB and the deterioration in households' financial positions, have already resulted in a significant increase in loan impairment across the Russian banking sector. Asset quality is likely to deteriorate further and Fitch believes the areas of highest risk will be loans to sectors which have been hardest hit by the economic downturn, in particular construction/real estate and retail trade; lending in foreign currency because of the RUB depreciation; loans to often highly- leveraged holding companies, commonly secured by collateral which has fallen substantially in value; and unsecured retail lending (although RSB manages this risk better than most banks active in this market). At the same time, Fitch notes some more encouraging recent signs for the Russian economy in terms of greater support for the oil price and the RUB, and more favorable market sentiment both globally and domestically. If the Russian recession turns out to be shallower and/or shorter than currently forecast, this would likely be supportive for banks' asset quality and their overall credit profiles, and could result in banks' Outlooks being revised back to Stable. The liquidity positions of the banks reviewed are at present comfortable. As a result of substantial funding support for the sector from the CBR and stability of customer deposits since October 2008, the vast majority of larger Russian banks have built up significant liquidity cushions. In Fitch's view, wholesale funding repayments for the banks reviewed are unlikely to prove onerous in 2009, and liquidity would probably only come under pressure if deposit outflow picks up again, or if the CBR sharply reduces its funding support for the sector. However, neither of these scenarios is currently regarded by Fitch as likely. The assessment of the banks referenced in this comment is the first part of a broader review of all Fitch-rated banks in Russia, with the main focus on asset quality, loss absorption capacity and contingency recapitalization plans. The rating actions are: MDM Bank -- Long-term IDR: downgraded to 'BB-' (BB minus) from 'BB'; Outlook changed to Negative from Stable -- Senior unsecured debt: downgraded to 'BB-' (BB minus) from 'BB' -- Subordinated debt: downgraded to 'B+' from 'BB-' (BB minus) -- Short-term IDR: affirmed at 'B' -- Individual Rating: downgraded to 'D' from 'C/D' -- Support Rating: affirmed at '4' -- Support Rating Floor: affirmed at 'B' -- National Long-term Rating: downgraded to 'A+(rus)' from 'AA- (AA minus)(rus)'; Outlook changed to Negative from Stable OJSC Alfa-Bank -- Long-term IDR: downgraded to 'BB-' (BB minus) from 'BB'; Outlook changed to Negative from Stable -- Senior unsecured debt: downgraded to 'BB-' (BB minus) from 'BB' -- Subordinated debt: downgraded to 'B+' from 'BB-' (BB minus) -- Short-term IDR: affirmed at 'B' -- Individual Rating: downgraded to 'D' from 'C/D' -- Support Rating: affirmed at '4' -- Support Rating Floor: affirmed at 'B' -- National Long-term Rating: downgraded to 'A+(rus)' from 'AA- (AA minus)(rus)'; Outlook changed to Negative from Stable JSC Russian Standard Bank -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Senior unsecured debt: affirmed at 'BB-' (BB minus) -- Short-term IDR: affirmed at 'B' -- Individual Rating: downgraded to 'D' from 'C/D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' URSA Bank -- Long-term IDR: 'B+'; remains on RWP -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: '5'; remains on RWP -- Support Rating Floor: 'B-' (B minus); remains on RWP Nomos-Bank -- Long-term IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at 'RR4' -- Subordinated debt: affirmed at 'B-' (B minus); Recovery Rating at 'RR6' -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'B-' (B minus) -- National Long-term Rating: affirmed at 'A(rus)'; Outlook changed to Negative from Stable Promsvyazbank -- Long-term IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at 'RR4' -- Subordinated debt: affirmed at 'B-' (B minus); Recovery Rating at 'RR6' -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '4' -- Support Rating Floor: affirmed at 'B' Bank Uralsib -- Long-term IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '4' -- Support Rating Floor: affirmed at 'B' Uralsib Leasing Group -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Support Rating: affirmed at '4' Bank Zenit -- Long-term IDR: affirmed at 'B+'; Outlook changed to Negative from Stable -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term Rating: affirmed at 'A-(A minus)(rus)'; Outlook changed to Negative from Stable ===================================== S E R B I A & M O N T E N E G R O ===================================== * SERBIA: Enhanced Stand-By Arrangement Agreed with IMF ------------------------------------------------------- Mr. Albert Jaeger, Mission Chief for Serbia at the International Monetary Fund (IMF), made the following statement on Thursday, March 26, in Belgrade: "An IMF staff mission and the Serbian authorities have today reached agreement, subject to approval by the IMF Management and the Executive Board, on a strengthened economic program that could be supported by an extension and augmentation of the Stand-By Arrangement (SBA) with Serbia. The enhanced arrangement would envisage a loan of some SDR2.6 billion (around EUR3 billion). The program period would be extended to 27 months, through mid-April 2011, and the arrangement would no longer be considered precautionary. "When the global financial turmoil began to spill over to Serbia last year, the authorities recognized the difficulties early and they deserve credit for negotiating a precautionary SBA with the IMF last November. But since then Serbia's external and domestic economic environment has deteriorated abruptly and relentlessly. As elsewhere in the region, exports and imports have plummeted, external borrowing has dried up, and economic activity has slumped. Going forward, the global and regional economic downturn will now likely be deeper and more protracted than projected only a few months ago. In this difficult setting, Serbia's GDP growth is likely to be negative this year, with limited prospects of recovery next year. The unsustainable spending boom in the public and private sectors that drove Serbia's economic growth and external imbalances in recent years is being reversed sharply. The augmented SBA is designed to smooth, not prevent, the inevitable contraction in economy-wide spending to more sustainable levels. "The authorities' proactive policy package aims to help Serbia attain a more balanced external position. Their strategy includes two main new elements. First, a large and balanced fiscal adjustment package has become necessary to contain the 2009 deficit to 3 percent of GDP, the maximum level that can be financed through non-inflationary sources. A combination of cuts in recurrent expenditure and nominal freezes and mostly temporary revenue increases will be needed, and should pave the way for medium-term fiscal reforms toward a more durable consolidation of public finances. Capital and social spending will be largely protected. Second, foreign banks have been asked to provide voluntary assurances to broadly maintain their commitment to Serbia and keep their subsidiaries well capitalized. The program will also stress the need to maintain prudent monetary policy aimed at containing inflation, and to kick-start long-delayed structural reforms to boost the economy�s potential output. The authorities will also seek further financial support from other international financial institutions and donors during this difficult period. "Both the Serbian authorities and the IMF staff believe that the policies envisaged under the program are adequate to maintain macroeconomic and financial stability. In the next few weeks, the authorities will take a series of actions, notably on revising the 2009 budget framework and proposing legislative changes to implement the agreed fiscal measures, so that the proposed SBA could be presented to the Executive Board of the IMF in May." ===================== S W I T Z E R L A N D ===================== AKZENTSWISS.CH LLC: Creditors Must File Claims by March 31 ---------------------------------------------------------- Creditors owed money by LLC Akzentswiss.ch are requested to file their proofs of claim by March 31, 2009, to: Ochsengasse 29 4058 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 10, 2009. BAUSCHREINEREI AEGERI: Deadline to File Claims Set March 31 ----------------------------------------------------------- Creditors owed money by JSC Bauschreinerei Aegeri Erhein are requested to file their proofs of claim by March 31, 2009, to: Heinz Hausler Zugerstrasse 46 6314 Unterageri Switzerland The company is currently undergoing liquidation in Unterageri. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 22, 2009. BRYNER LLC: Creditors Have Until March 31 to File Claims -------------------------------------------------------- Creditors owed money by LLC Bryner are requested to file their proofs of claim by March 31, 2009, to: JSC UV-Treuhand & Partner Untere Bahnhofstrasse 19 9800 Wil SG Switzerland The company is currently undergoing liquidation in Moriken-Wildegg T. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 20, 2009. CEDIX LLC: Proofs of Claim Filing Deadline is March 31 ------------------------------------------------------ Creditors owed money by LLC Cedix are requested to file their proofs of claim by March 31, 2009, to: Rachel Doebeli im Baumgarten 33a 8552 Felben-Wellhausen Switzerland The company is currently undergoing liquidation in Marstetten. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 12, 2007. G & H GRIEDER: Creditors' Proofs of Claim Due by March 31 --------------------------------------------------------- Creditors owed money by JSC G. & H. Grieder are requested to file their proofs of claim by March 31, 2009, to: Muhlemattweg 2 4450 Sissach Switzerland The company is currently undergoing liquidation in Sissach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 10, 2009. METSO MINERALS: March 31 Set as Deadline to File Claims ------------------------------------------------------- Creditors owed money by JSC Metso Minerals (Schweiz) are requested to file their proofs of claim by March 31, 2009, to: Schachen 8033 Buchrain Switzerland The company is currently undergoing liquidation in Buchrain. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 26, 2009. WIGET & PARTNER: Creditors Must File Proofs of Claim by March 31 ---------------------------------------------------------------- Creditors owed money by JSC Wiget & Partner are requested to file their proofs of claim by March 31, 2009, to: Wiget Hans Peter Gruebweg 11 4451 Wintersingen Switzerland The company is currently undergoing liquidation in Wintersingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 12, 2009. ============= U K R A I N E ============= ADELISK LLC: Creditors Must File Claims by April 11 --------------------------------------------------- Creditors of LLC Adelisk (EDRPOU 35143034) have until April 11, 2009, to submit proofs of claim to Y. Vanzhula, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 44/290-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Adelisk Office 43 M. Grushevsky St. 28/2 01021 Kiev Ukraine DAFI-BUILDING PLUS LLC: Court Starts Bankruptcy Procedure --------------------------------------------------------- The Economic Court of Dnepropetrovsk commenced bankruptcy supervision procedure on LLC Dafi-Building Plus (EDRPOU 33906393). The Temporary Insolvency Manager is: R. Talan Post Office Box 158 49000 Dnepropetrovsk Ukraine The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Dafi-Building Plus Shevchenko lane 1A 49044 Dnepropetrovsk Ukraine GULIAYPOLE FOOD: Creditors Must File Claims by April 11 ------------------------------------------------------- Creditors of CJSC Guliaypole Food and Flavouring Plant (EDRPOU 33211112) have until April 11, 2009, to submit proofs of claim to N. Vereschak, Insolvency Manager. The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 12/20(09). The Court is located at: The Economic Court of Zaporozhye Shaumian street 4 69001 Zaporozhye Ukraine The Debtor can be reached at: CJSC Guliaypole Food And Flavouring Plant Hertzen street 13 Guliaypole 70200 Zaporozhye Ukraine HORK LLC: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------- The Economic Court of Poltava commenced bankruptcy supervision procedure on LLC Hork (EDRPOU 31428903). The Temporary Insolvency Manager is I. Gritsenko. The Court is located at: The Economic Court of Poltava Zigin St. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Hork Lenin St. 44 Khorol 37800 Poltava Ukraine IKVA AGRICULTURAL: Creditors Must File Claims by April 11 --------------------------------------------------------- Creditors of Agricultural LLC Ikva (EDRPOU 00849764) have until April 11, 2009, to submit proofs of claim to: Pension fund of Ukraine Department in Borispol Insolvency Manager Golovaty St. 4 Borispol 08302 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No B2/282-08. The Court is located at: The Economic Court of Kiev Komintern street 16 01032 Kiev Ukraine The Debtor can be reached at: Agricultural LLC Ikva Krupskaya St. 34 Voronkov Borispol 08352 Kiev Ukraine L-O-K LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------- The Economic Court of Poltava commenced bankruptcy supervision procedure on LLC L-O-K (EDRPOU 33129070). The Temporary Insolvency Manager is I. Gritsenko. The Court is located at: The Economic Court of Poltava Zigin St. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC L-O-K Kirov St. 18/2 Lubny 37500 Poltava Ukraine * UKRAINE: Default on Foreign Debt Unlikely, Prime Minister Says ---------------------------------------------------------------- Ron Popeski at Reuters reports Prime Minister Yulia Tymoshenko on Thursday said Ukraine would not default on its foreign debt obligations. "Ukraine is nowhere near being in a position of default," Minister Tymonshenko told Reuters in an interview during a visit to Japan. "We are implementing our budget and meeting all our debt obligations, even those that are being called in ahead of term. I do not see even the slightest threat that this might occur." Reuters recalls last year, the International Monetary Fund approved a US$16.4 billion credit for Ukraine, which has been hit hard by the global crisis. Reuters notes payment of the second tranche, estimated at US$1.84 billion, has been suspended amid differences on implementing a program to counter the effects of the financial crisis. Reuters discloses parliament is to consider this week further anti-crisis legislation worked out with the IMF. =========================== U N I T E D K I N G D O M =========================== AMERICAN INT'L: Posted Collateral on Rented Property in U.K. ------------------------------------------------------------ Chris Peterson at Bloomberg News, citing the Wall Street Journal, reported that American International Group Inc. was forced to post more than GBP500 million (USUS$727 million) in collateral on property rented in London's Canary Wharf by Lehman Brothers Holdings Inc. and Citigroup Inc. in case of possible rent defaults. The report, citing the Journal, relates that according to Songbird Estates Plc, which owns many of the buildings in the office block development, AIG's credit rating cut meant the collateral requirement kicked in. Although Lehman entered administration on Sept. 15 its trustees have continued to pay the rent on the property it occupies, the Journal said as cited by Bloomberg News. Based in New York, American International Group, Inc. (AIG), is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from US$22.76 on September 8, 2008, to US$4.76 on September 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On September 22, 2008, AIG entered into an US$85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At September 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled US$63 billion, including accrued fees and interest. Since September 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to September 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, US$40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At September 30, 2008, AIG had US$1.022 trillion in total consolidated assets and US$950.9 billion in total debts. Shareholders' equity was US$71.18 billion, including the addition of US$23 billion of consideration received for preferred stock not yet issued. The Troubled Company Reporter reported on March 4, 2009, that Moody's Investors Service confirmed the A3 senior unsecured debt and Prime-1 short-term debt ratings of American International Group, Inc. AIG's subordinated debt rating has been downgraded to Ba2 from Baa1. The rating outlook for AIG is negative. This rating action follows AIG's announcement of net losses of US$62 billion for the fourth quarter and US$99 billion for the full year of 2008, along with a revised restructuring plan supported by the US Treasury and the Federal Reserve. This concludes a review for possible downgrade that was initiated on September 15, 2008. BUSINESS LTD: Appoints Joint Administrators from BDO Stoy Hayward ----------------------------------------------------------------- Christopher Kim Rayment and Shay Bannon of BDO Stoy Hayward LLP were appointed joint administrators of The Business (Telford) Ltd. on March 12, 2009. The company can be reached through BDO Stoy Hayward LLP at: 125 Colmore Row Birmingham B3 3SD England EBTM PLC: Taps Joint Administrators from BDO Stoy Hayward --------------------------------------------------------- David Harry Gilbert and Antony David Nygate of BDO Stoy Hayward LLP were appointed joint administrators of EBTM Plc on March 12, 2009. The company can be reached through BDO Stoy Hayward LLP at: 55 Baker Street London W1U 7EU England ELMWALK SERVICES: Appoints Administrators from Tenon Recovery ------------------------------------------------------------- Nicholas Charles Simmonds and Steven John Parker of Tenon Recovery were appointed joint administrators of Elmwalk Services Ltd. on March 11, 2009. The company can be reached at: Elmwalk Services Ltd. Casbrook Park Rimsbury Romsey Hampshire SO51 OPG England FORBURY HOTEL: Calls in Joint Administrators from Baker Tilly ------------------------------------------------------------- Richard Meadley Wild and Mark John Wilson of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of The Forbury Hotel Ltd. on March 11, 2009. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: The Clock House 140 London Road Guildford Surrey GU1 1UW England GLOBAL TRADER: Unsecured Creditors to Get 68 Pence in the Pound --------------------------------------------------------------- Smith & Williamson on Wednesday, March 25, received Sir Andrew Park's judgment on the claims of clients of Global Trader Europe Limited. Smith & Williamson will (subject to any appeal or application) distribute the client money held in the segregated accounts (which it is estimated will result in a return of up to 95 pence in the pound relative to the value of clients' claims as at the time of the liquidator's appointment) and adjudicate on proofs so that they can make a substantial interim distribution to creditors, as a part payment on an overall dividend. It is estimated that the total final dividend to unsecured creditors will be in the region of 68 pence in the pound. Stephen Cork, head of restructuring and recovery at Smith & Williamson, and Joint Liquidator of Global, said: "We will now be in contact with all creditors who have already submitted a proof of debt. Any creditor who has not yet submitted a proof should do so as soon as possible, as we intend to make payments to creditors within two months from today, subject to any appeals." The Judge recognized the complexity of the issues raised by clients, and in consequence, his judgment is lengthy and detailed. There were many competing claims made by various different classes of client and creditors; and the judgment is the culmination of the work done by Smith & Williamson to resolve these diverse claims. The Judge decided that the funds which Global held in segregated accounts are to be distributed between the clients whose funds Global had agreed to segregate (according to the documentation on Global's client files) and for whom Global held funds in its segregated accounts as at the close of business on February 14, 2008, the day before Global went into administration, (by reference to the information which the directors of Global provided to the administrators on their appointment on February 15, 2008). The distribution to these clients will be by reference to the value of their positions as at February 15, 2008, in accordance with the order made by the Honorable Mr. Justice David Richards on October 3, 2008. The segregated funds are to be increased by an amount equal to profits generated by or crystallized on positions held by this class of client between close of business on February 14, 2008 (when Global carried out its final daily reconciliation before the appointment) and the time at which the administrators were appointed on February 15, 2008. The Judge held that these clients have no proprietary claim to profits generated by positions which remained open during the administration or liquidation. Consequently, these clients are unsecured creditors of Global in respect of: a. the shortfall between the value of their positions as at February 15, 2008 and the distribution they receive from the funds standing to the credit of the segregated accounts, and; b. any increase in the value of positions which remained open at the time of the appointment during the administration and liquidation. The Judge directed that where a segregated client's position remained open after the time of the appointment, and fell in value between that time and the time at which the position was actually closed, the liquidators can, in reliance on Global's contractual terms and conditions, retain from the sum falling to be distributed to that client from the segregated accounts, the amount of that client's debt to Global. Unsecured Creditors The Judge rejected claims made on behalf of clients who, in the period before November 1, 2007 (when the Markets in Financial Instruments Directive was implemented in the United Kingdom), Global had classified as Intermediate Customers to a proprietary interest in the funds held in the segregated accounts. In relation to their claims to a proprietary interest in the general funds of Global, the Judge dealt separately with money provided to Global (e.g. by way of margin) and with profits generated on client positions. Payments to Global The Judge held that money paid by Intermediate Customers to Global (including by way of margin) in the period before November 1, 2007 was client money and was held on the statutory trust for so long as it remained identifiable, because Global failed to obtain written acknowledgment from customers that money paid to Global would not be segregated from the money of Global and would be used by the company in the course of its own business and that the customer would rank only as a general creditor. However, as Global did not segregate these sums, the funds lost their identity, because they were paid into "active trading accounts of a busy company, and payments in and out of them, often of large sums, were made constantly". Moreover, from time to time, some of Global's general accounts were overdrawn. He concluded that an attempt to "establish a tracing case will be difficult indeed". On the implementation of MiFID, Global sought to introduce new terms and conditions by sending an email to clients which contained a hyper-link to the new terms and conditions. Not all Intermediate Clients received the correct email. The Judge held that margin payments made by clients who received the correct email and accepted its contents by entering into at least one new trade with Global did not fall to be regarded as client money. Any new money received from clients who did not receive the correct email was client money and held on trust on receipt. However, Global believed that the money was not client money and did not keep it in identifiable existence in a segregated account, with the result that the money would have lost its identity by the time that the company went into administration. Profits As to profits, the Judge held that when a client's position was closed and a profit arose, Global owed a contractual debt to the client: the client did not acquire a proprietary interest in the sums unless and until Global paid the money into a segregated account or to the client. General Implications More generally, the Judgment provides useful guidance on the meaning and application of the FSA's Client Assets Sourcebook. As reported in the Troubled Company Reporter-Europe on Feb. 20, 2008, Global Trader Europe Limited disclosed that it experienced a regulatory capital deficit as a result of a single client margin call default. Thus, under these circumstances GT Europe applied, at the close of business on Feb. 13, 2008, to the Financial Services Authority in the United Kingdom for a Variation of Permission -- the official method by which companies change the terms of their authorization, limiting principal activities to closing existing trades. GT Europe, on Feb. 15, 2008, applied, with the permission of the FSA, to be managed under Administration. Global Trader Europe Global Trader Europe Limited is held independently as the owner of the international operations of the Global Trader group. Global Trader -- http://www.gt247.co.za/-- is a pioneering international financial institution offering a Spread Trading and a Contract for Difference execution and advisory service to both institutional and private clients investing in international and domestic markets. Global Trader was founded in Europe in 2000. Since then it has grown its global reach into South Africa, North America and Asia, with a physical presence in the United Kingdom, South Africa, Thailand, Canada and Russia. Worldwide, Global Trader is authorized and regulated by the Financial Services Authority in the United Kingdom. Global Trader is an authorized Financial Services Provider by the Financial Services Board of South Africa and registered as a derivatives dealer with the Securities and Exchange Commission of Thailand. Global Trader is a Member of the London Stock Exchange and is a derivative member of the JSE Limited. Global Trader is run by a group of market professionals who share a common goal to redefine trading. Applying their extensive financial backgrounds with leading Global Investment banks and software houses, the management team have built Global Trader into an international trading house. GREENCYCLE PLC: In Administration; KPMG Appointed ------------------------------------------------- At the request of the directors, Ian Corfield and Richard Fleming were appointed as Joint Administrators to Greencycle plc on 24 March 24, 2009 after the business, which collects and disposes of recyclable waste for local authorities, experienced financial difficulties. Greencycle is headquartered in Middlesex but the local authorities it serviced were primarily Durham in the North East and Congleton, Cheshire in the North West. Greencycle was contracted to manage the kerbside collections of residents' recyclable waste and to dispose of it. The company has ceased to operate and 220 of the 228 employees have been made redundant, while the remainder will work with the Administrators to wind down the business. Ian Corfield, Joint Administrator and KPMG Restructuring Director said: "Recent volatility in the waste materials market is affecting many organisations in the recycling sector. This contributed to the fact Greencycle has been lossmaking in recent months which fatally impacted its cashflow." Residents in Durham and Congleton should contact their local authority if they have questions about the collection service that was provided in their area by Greencycle. LEVERAGEDFINANCE EUROPE: S&P Cuts Rating on Class D Notes to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B, C, D, and E notes issued by LeveragedFinance Europe Capital III B.V., due to a deterioration in the collateral credit quality. At the same time, S&P removed the class D and E notes from CreditWatch negative and affirmed the class A notes. On Feb. 17, S&P placed the class C and D notes on CreditWatch negative following a preliminary review of the effect of recent developments on European collateralized loan obligations. The rating actions reflect S&P's view that the underlying portfolio's credit quality has deteriorated. S&P's analysis shows an increase in the scenario default rates for this transaction. At the same time, par value losses following the defaults of corporate obligors in the underlying portfolio have resulted in a decrease in break-even default rates for the tranches in the CLO when subject to S&P's cash flow analysis. In S&P's opinion, the increase in SDRs and the fall in BDRs are no longer commensurate with the ratings previously assigned. Leveraged Finance Europe Capital III B.V. is an arbitrage cash flow CLO managed by BNP Paribas that closed in October 2004. The portfolio comprises senior secured and mezzanine loans from issuers incorporated in Western Europe. As recently announced, S&P's criteria for rating cash flow CLOs are under review. As highlighted in the notices below, S&P is soliciting feedback from market participants regarding proposed changes to S&P's CLO criteria. S&P will evaluate the market feedback, which may result in further changes to the criteria. This may affect S&P's ratings on the notes issued by Leveraged Finance Europe Capital III. The rating actions are unrelated to these proposed changes. Ratings List Leveraged Finance Europe Capital III B.V. EUR306.5 Million Floating-Rate Notes Ratings Lowered Class To From ----- -- ---- B A+ AA C BBB+ A+ Ratings Lowered and Removed from Creditwatch Negative Class To From ----- -- ---- D B BBB-/Neg E B- BB-/Watch Neg Rating Affirmed Class Rating ----- ------ A AAA MILLENNIUM COMMUNICATIONS: Andrew Appleyard Named Liquidator ------------------------------------------------------------ Andrew Appleyard of Tenon Recovery was appointed liquidator of Millennium Communications Network Ltd. on March 3, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: 6th. Floor The White House 111 New Street Birmingham B2 4EU England PORTHMADOG SERVICES: Appoints Joint Liquidators from PKF -------------------------------------------------------- Kerry Franchina Baileyand Ian James Gould PKF (UK) LLP were appointed joint liquidators of Porthmadog Services Ltd. on Feb. 18, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: Porthmadog Services Ltd. 15 Highfield Road Hall Green Birmingham West Midlands B28 0EL England The company is engaged in the demolition and wrecking of buildings. SONGBIRD ESTATES: At Risk of Breaching Loan Covenants ----------------------------------------------------- Songbird Estates Plc warned on Thursday that it could breach its loan covenants in the next 12 months due to a sharp fall in the value of its properties, sending shares down 24.8 percent to 25 pence each, Reuters' Daryl Loo reports. Reuters relates Songbird said it is close to breaching covenants on a GBP880 million (US$1.3 billion) loan due in May 2010. Songbird, Reuters discloses, has appointed investment bank Rothschild to advise on its refinancing options. "Rothschild is reviewing our overall financial structure and covenants will be part of that ... and we are in discussions with lenders and major shareholders," Reuters quoted company secretary John Garwood as saying. Citing Mr. Garwood, Reuters notes the company's loan-to-valuation ratio is now at 86.1 percent, putting it close to a covenant limit of 87.5 percent. According to Reuters, breaching this limit would allow its lender to request early payment of outstanding loans. Reuter recounts Songbird's property portfolio, including sites still being developed, fell 26.5 percent year-on-year to GBP4.9 billion at the end of December, as the global economic crisis hit its mainly financial services tenants hard. The Financial Times' John O'Doherty states any covenant breach is not however likely to occur before November since, until then, the company will be using valuations made at the end of last year. Songbird, the FT recalls, made a pre-tax loss of GBP1.8 billion for 2008 compared with a profit of GBP182 million the previous year as a result of the GBP1.8 billion in property valuations. Headquartered in London, United Kingdom, Songbird Estates Plc -- http://www.songbirdestates.com/-- is engaged in the management of its investment in its main subsidiary, Canary Wharf Group plc, a holding company for a group (Canary Wharf Group), which specializes in integrated property development, investment and management. The activities of Canary Wharf Group are focused on the development of the Canary Wharf Estate (the Estate) (including Heron Quays and the adjacent sites at Canary Riverside and North Quay). Canary Wharf Group is also engaged in development, through joint ventures, of Wood Wharf and Drapers Gardens. As of December 31, 2007, Canary Wharf Group's investment portfolio comprised 16 completed properties (out of the 30 constructed on the Estate) totaling 7.9 million square feet of net internal area. WATERFORD WEDGWOOD: KPS Capital Acquires Certain Assets ------------------------------------------------------- KPS Capital Partners LP on Thursday, March 26, acquired certain assets of Waterford Wedgwood Plc through a newly formed company, WWRD Holdings Limited. Financial terms of the transaction were not disclosed. The transaction is global in scale, involving the purchase of certain Waterford, Wedgwood and Royal Doulton assets in the United Kingdom, the United States and Canada; the purchase of intellectual property in Ireland; and the purchase of the shares of certain Waterford Wedgwood subsidiaries, including in Japan, Indonesia, Hong Kong, Taiwan, Singapore and Australia. Pierre de Villemejane has been named Chief Executive Officer of WWRD Holdings. Mr. de Villemejane was previously Chief Executive Officer of Speedline Technologies Inc., a KPS portfolio company, prior to its successful sale to Illinois Tool Works Inc. Prior to Speedline, Mr. de Villemejane held a number of management positions in the United Kingdom and France, including at L'Oreal, where he demonstrated leadership in branded products management. The senior management team of WWRD Holdings will consist of executives from Waterford Wedgwood, including Anthony Jones, Moira Gavin and Ralf Kuhn. Michael Psaros, a Managing Partner of KPS, said, "This is a new day for Waterford Wedgwood, the leading enterprise in the luxury home and lifestyle industry worldwide. As a new company created and owned by KPS, with an accomplished new CEO, and a new capital structure, the Company is positioned for great success. WWRD Holdings launches with legendary brands, global scale and a rock- solid balance sheet unencumbered by Waterford Wedgwood's approximately EUR800 million (US$1 billion) of legacy liabilities. Further, WWRD Holdings will have a leaner management structure, a materially improved cost structure and manufacturing footprint, and access to significant capital from KPS and its bank group to fund its growth. "The Waterford Wedgwood transaction is the result of a highly complex, multi-constituency restructuring transaction, involving asset and share purchases in more than ten jurisdictions worldwide. Going forward, we and our management team will work to materially improve the Company's core operations, efficiency and productivity, and drive significant revenue growth. We thank Bank of America for its leadership through the restructuring process and for its support of our new company," Mr. Psaros added. Mr. de Villemejane said, "This is the beginning of an exciting new era for Waterford Wedgwood. We look forward to building on the Company's world-renowned brands and incomparable heritage, premier designers and strong customer relationships. No other company in this dynamic sector has a comparable breadth of products from classic to contemporary, and we intend to grow the business aggressively. Our exclusive focus will be on providing our customers with the most innovative, fashionable and quality products in the world. "We intend to grow the company organically and through acquisition, leveraging our capital strength and the pre-committed acquisition facility contained in our bank financing. We believe that our primary competitors are generally undercapitalized and regionally focused, presenting a significant opportunity to consolidate the industry worldwide," Mr. de Villemejane concluded. Financing for the acquisition was provided by a bank syndicate, agented by Bank of America Business Capital through a credit facility, and by KPS Capital Finance Management LLC, through a term loan. Kirkland & Ellis LLP acted as legal counsel to KPS and WWRD Holdings. Turnaround Strategy Mr. Psaros told the Financial Times his strategy for turning round Waterford Wedgwood was to cut costs by streamlining its back- office operations and to shift more production to low-cost countries. "It is all based on costs and we are not assuming any revenue growth to achieve profitability," the FT quoted Mr. Psaros as saying. According to the FT, KPS will invest EUR100 million in the company, which will be "virtually debt free", after leaving its EUR800 million of debts and pension liabilities in receivership. The FT relates Mr. Psaros said the company was shifting its Waterford crystal production to Germany and Slovakia, and its Wedgwood and Royal Doulton china production to Indonesia. Mr. Psaros, as cited by the FT, said real works of art and highest-end products will still be done in Barleston. Jobs BBC News reports the sale of Waterford Wedgwood to KPS has saved more than 100 jobs at Waterford Crystal in Ireland. The FT notes Mr. Psaros said 173 of the 480 staff in Ireland would continue to work at the company, but they would be employed by the receivers, not by the new company. WAtoday.com.au discloses receiver Deloitte said 450 jobs at Waterford Wedgwood's Australian operations, which included a head office in New South Wales and 83 wholesale and retail outlets across the states, have been saved following the sale. The 450 staff comprised full-time and part-time employees in administration, wholesale and retail, WAtoday.com.au states. As reported in the Troubled Company Reporter-Europe, Waterford Wedgwood plc along with 10 subsidiaries entered administration on Jan. 5, 2009. Angus Martin, Neville Kahn, Nick Dargan and Dominic Wong of Deloitte LLP, were appointed as joint administrators while David Carson, partner of Deloitte in Ireland, was appointed receiver of Waterford Wedgwood plc, (the ultimate parent of the UK companies), and a number of its trading subsidiaries. The Waterford Wedgwood subsidiaries in administration are: Waterford Wedgwood UK Plc Wedgwood Limited Josiah Wedgwood & Sons Limited Josiah Wedgwood & Sons (Exports) Limited Waterford Wedgwood Retail Limited Royal Doulton Ltd Royal Doulton (UK) Limited Royal Doulton Overseas Holdings Ltd Stuart & Sons Limited Statum Limited Waterford Wedgwood plc is the ultimate holding company with manufacturing operations in Ireland. The Irish businesses in total employ approximately 800 people. The group also has manufacturing operations in the UK, Indonesia and Germany. * UK: Second Mortgage Business Badly Hit by Credit Crunch --------------------------------------------------------- The latest statistics released by the Finance and Leasing Association (FLA) showed that second mortgage business has been significantly hit by the credit crunch with new business 84% lower in January compared with January 2008. The downturn comes at a time when home owners are choosing to improve their property rather than move house. Second charge mortgages are traditionally used for building extensions or home improvements that can add value to a property or for debt consolidation, which allows consumers to consolidate their existing debts at a lower and more affordable rate of interest. Fiona Hoyle, Head of Consumer Finance at the FLA, said: "Second mortgage new business fell significantly in 2008 as a result of the difficulties facing companies trying to secure funding in the commercial markets. This has continued into 2009 with our figures showing that FLA members wrote GBP53 million of new secured loan business in January 2009, compared to just over a third of a billion pounds in January 2008. The change is marked." The Government review of the second charge mortgage market last year found no systemic problems with the market and FLA members have published good practice guidelines that have been warmly welcomed by BERR, the Treasury and Office of Fair Trading. Other sectors also showed a weak performance: -- Total finance provided to consumers in the 12 months to January 2009 by FLA members was �59.2bn, down by 10% on the 12 months to January 2008. -- Direct unsecured personal loans fell 28% in the 12 months to January 2009 compared with the previous year. -- New credit card business was down 12 per cent in January compared with January 2008. Store instalment credit, although beginning to weaken with new business in January 5 per cent down on January 2008, is still 8 per cent higher in the 12 months to January than the previous year. * IVA Could Help Struggling Borrowers Avoid Bankruptcy ------------------------------------------------------ Debt Advisers Direct, responding to new figures from the Ministry of Justice showing that the number of people seeking bankruptcy rose by 32% in the final three months of 2008, has said that people with unmanageable debts said that an Individual Voluntary Arrangement could help people avoid bankruptcy if other debt solutions are not appropriate. An IVA is a legally-binding agreement between a borrower and their creditors that enables them to avoid bankruptcy by agreeing to pay off a set percentage of their debts, after which the remaining debt will be written off. Before an IVA can go ahead, the borrower must work together with an Insolvency Practitioner to draw up an IVA proposal, which must then be approved by creditors accounting for 75% of the total debt. The latest 'Company winding up and bankruptcy petition court statistics' report from the Ministry of Justice showed that 15,358 people applied for bankruptcy through the courts in the final quarter of 2008, up by 32% compared with the same quarter in 2007, and a 12% increase on the previous quarter. A further 4,772 creditors' petitions, in which the lender asks the courts to declare the borrower bankrupt, were issued between October and December 2008 -- an increase of 3% on the final quarter of 2007, but, perhaps more interestingly, a 15% decrease compared with the previous quarter. The fall in creditors' petitions may have been due to government requests for more leniency from lenders with regards to legal proceedings. Alternatively, since bankruptcy forces the repossession of the borrower's home, it could be because falling house prices have made bankruptcy a less appealing option to lenders than other debt management arrangements. A spokesperson for Debt Advisers Direct said, "Bankruptcy is generally considered the last resort for anyone struggling with their debts, since it usually leads to the repossession of the borrowers' home, and can severely limit access to further credit for a number of years after the bankruptcy. That said, in some cases bankruptcy can be the best option for the borrower. Borrowers are usually discharged from bankruptcy within a year, and it essentially writes off most or all of the debt, which can be a huge relief for people who have been struggling with their debts for a long time." But the spokesperson added that many people considering bankruptcy as a way out of debt may be better off with an IVA. "An IVA can avoid many of the downsides of bankruptcy. In particular, the borrower will not lose their home with an IVA, and there are fewer employment restrictions compared with bankruptcy. However, anyone considering an IVA should be aware that it is a big commitment that usually lasts five years - so the borrower must ensure that they can meet the requirements for the full period," the spokesperson said. Although an IVA does not force the repossession of the borrower's home, homeowners with an IVA may be required to remortgage to release some of the equity in the 54th month (half way through the final year) of the IVA. On successful completion of the IVA, the remaining debt is written off. The Debt Advisers Direct spokesperson said that while IVAs are a valid way for people to get out of debt, borrowers should consider whether other debt solutions like a debt consolidation loan or a debt management plan, could be more suitable for their circumstances. * BOND PRICING: For the Week March 23 to March 27, 2009 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Oester Volksbk 4.810 07/29/25 EUR 77.65 CYPRUS ------ Abh Financial Lt 8.200 06/25/12 USD 54.57 Alfa MTN invest 9.250 06/24/13 USD 52.21 FRANCE ------ Alcatel SA 4.750 01/01/11 EUR 13.17 Alcatel SA 6.380 04/07/14 EUR 58.73 Axa SA 7.130 12/15/20 GBP 72.56 Axa SA 8.600 12/15/30 USD 75.13 BNP Paribas 0.2500 12/20/14 USD 73.72 Calyon 6.000 06/18/47 EUR 37.85 Soc Air France 2.750 04/01/20 EUR 19.38 Wavecom SA 1.750 01/01/14 EUR 30.76 GERMANY ------- Bayer AG 5.000 07/29/2105 EUR 69.17 Bayerische Lndbk 4.250 10/05/16 EUR 71.73 Bayerische Lndbk 4.500 02/07/19 EUR 66.72 GREECE ------ Antenna TV SA 7.250 02/15/15 EUR 54.50 Antenna TV SA 7.250 02/15/15 EUR 54.75 HUNGARY ------- Agrokor 7.000 11/23/11 EUR 66.17 IRELAND ------- Aegon Global 3.250 12/09/10 EUR 80.97 Aegon Global 4.250 01/23/12 EUR 76.32 Alfa Bank 8.630 12/09/15 USD 54.57 Alfa Bank 8.640 02/22/17 USD 52.21 Allied Irish Bks 7.880 07/05/23 GBP 64.09 Allied Irish Bks 5.250 03/10/25 GBP 54.04 Allied Irish Bks 5.630 11/29/30 GBP 50.96 Ardagh Glass 7.130 06/15/17 EUR 64.88 Ardagh Glass 7.130 06/15/17 EUR 65.46 Banesto Finance 6.120 11/07/37 EUR 6.12 Bank Soyuz 9.380 02/16/10 USD 72.48 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 72.36 Ak Bars Bank 9.250 06/20/11 USD 63.92 Alrosa Finance 8.880 11/17/14 USD 68.71 Bank of Moscow 7.340 05/13/13 USD 66.03 Bank of Moscow 7.500 11/25/15 USD 54.12 Bank of Moscow 6.810 05/10/17 USD 43.37 Beverage Pack 8.000 12/15/16 EUR 73.00 Beverage Pack 8.000 12/15/16 EUR 73.29 Beverage Pack 9.500 06/15/17 EUR 47.00 Beverage Pack 9.500 06/15/17 EUR 47.13 NETHERLANDS ----------- ABN Amro Bank NV 6.000 03/16/35 EUR 48.80 ABN Amro Bank NV 6.250 06/29/35 EUR 39.12 Achmea Hypobk 4.300 04/03/24 EUR 72.73 Achmea Hypobk 4.000 12/27/24 EUR 68.78 Aegon NV 6.130 12/15/31 GBP 66.58 Air Berlin Finan 1.500 04/11/27 EUR 35.12 ALB Finance BV 9.750 02/14/11 GBP 22.48 ALB Finance BV 7.880 02/01/12 EUR 20.97 Alfa Bk Ukraine 9.750 12/22/09 USD 56.47 Allianz Finance 6.130 05/31/22 EUR 72.27 Allianz Finance 6.500 01/13/25 EUR 72.15 ASM Holding NV 5.750 06/13/17 EUR 63.25 ASM Intl NV 4.250 12/06/11 USD 70.00 Astana Finance 7.880 06/08/10 EUR 21.25 Astana Finance 9.000 11/16/11 USD 24.96 ATF Capital BV 9.250 02/21/14 USD 41.53 Bk Ned Gemeenten 0.500 06/27/18 CAD 71.90 Bk Ned Gemeenten 0.500 02/24/25 CAD 47.69 Hit Finance BV 4.880 10/27/21 EUR 70.23 JSC Bank Georgia 9.000 02/08/12 USD 39.84 Turanalem Fin BV 7.880 06/02/10 USD 32.48 Turanalem Fin BV 6.250 09/27/11 EUR 25.47 Turanalem Fin BV 7.750 04/25/13 USD 26.15 Turanalem Fin BV 8.000 03/24/14 USD 22.73 Turanalem Fin BV 8.500 02/10/15 USD 25.93 Turanalem Fin BV 8.250 01/22/37 USD 23.70 Turanalem Fin BV 8.250 01/22/37 USD 24.36 ROMANIA ------- Bucharest 4.130 06/22/15 EUR 49.83 SPAIN ----- Ayt Cedulas Caja 3.750 12/14/22 EUR 79.35 Ayt Cedulas Caja 3.750 06/30/25 EUR 73.78 Banco Bilbao Viz 4.380 10/20/19 EUR 67.82 UNITED KINGDOM -------------- Amlin Plc 6.500 12/19/26 GBP 66.43 Anglian Wat Fin 2.400 04/20/35 GBP 49.45 Arsenal Sec 5.140 09/01/29 GBP 69.77 Ashtead Holdings 8.630 08/01/15 USD 56.38 Ashtead Holdings 8.630 08/01/15 USD 55.75 Aspire Defence 4.670 03/31/40 GBP 64.21 Aspire Defence 4.670 03/31/40 GBP 63.71 Aviva Plc 5.250 10/02/23 EUR 42.74 Aviva Plc 6.880 05/22/38 EUR 39.64 Aviva Plc 6.880 05/22/58 EUR 53.02 Azovstal 9.130 02/28/11 USD 32.45 Barclays Bk Plc 9.750 09/30/09 GBP 76.65 Barclays Bk Plc 6.000 01/23/18 EUR 71.43 Barclays Bk Plc 4.500 03/04/19 EUR 68.91 Barclays Bk Plc 5.750 09/14/26 GBP 68.64 Barclays Bk Plc 6.330 09/23/32 GBP 70.67 Bradford&Bin Bld 4.250 05/04/16 EUR 79.22 Bradford&Bin Bld 4.880 06/28/17 EUR 79.69 Bradford&Bin Bld 6.630 06/16/23 GBP 10.38 Bradford&Bin Bld 4.910 02/01/47 EUR 60.50 Brit Insurance 6.630 12/09/30 GBP 55.56 British Airways 8.750 08/23/16 GBP 73.20 British Land Co 5.260 09/24/35 GBP 71.70 British Land Co 5.260 09/24/35 GBP 70.61 British Tel Plc 5.750 12/07/28 GBP 73.13 British Tel Plc 6.380 06/23/37 GBP 72.98 Britannia Bldg 5.750 12/02/24 GBP 66.91 Britannia Bldg 5.880 03/28/33 GBP 61.18 Brixton Plc 6.000 12/30/10 GBP 70.06 Brixton Plc 5.250 10/21/15 GBP 33.04 Brixton Plc 6.000 09/30/19 GBP 44.53 Broadgate Finance 5.000 10/05/31 GBP 70.82 Broadgate Finance 5.100 04/05/33 GBP 62.98 Broadgate Finance 4.820 07/05/33 GBP 73.77 CGNU Plc 6.130 11/16/26 GBP 51.55 Guardian Royal 6.630 08/21/23 GBP 95.92 Heating Finance 7.880 03/31/14 GBP 47.75 ********* 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 * * *