/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090422.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 Wednesday, April 22, 2009, Vol. 10, No. 78 Headlines A U S T R I A B.T. LLC: Claims Registration Period Ends May 6 BWK PUBLISHING: Claims Registration Period Ends May 6 ECO LLC: Claims Registration Period Ends May 6 GARVENS SERVICE: Claims Registration Period Ends May 5 GIGA LLC: Claims Registration Period Ends May 5 SCHWERTRANS ERLACHER: Claims Registration Period Ends May 5 THEATECH LLC: Claims Registration Period Ends May 4 TOURISM MANAGEMENT: Claims Registration Period Ends May 5 F R A N C E BELVEDERE SA: Creditor Group Proposes Restructuring Plan G E R M A N Y ARCANDOR AG: Mulls Asset Sale, Needs EUR900 Mln over 5 Years ASCARON ENTERTAINMENT: Goes Into Administration G-LEC: Goes Into Administration Following Poor Trading HEIDELBERGCEMENT AG: In Refinancing Talks, Seeks Two-Part Waiver HYPO REAL ESTATE HOLDING: Gov't Eyes Majority Control by June 30 INFINEON: RBS Lifts Rating to Buy; In Talks Over State Guarantee INGENIEURSGESELLSCHAFT MBH: Claims Registration Ends April 29 PULS GMBH: Claims Registration Period Ends May 15 SIGU GMBH: Claims Registration Period Ends May 25 SMM PARTNER: Claims Registration Period Ends May 25 STANDARD METALLWERKE: Claims Registration Period Ends May 20 I C E L A N D KAUPTHING BANK: Secures Funds to Repay German Edge Depositors I R E L A N D ALLIED IRISH: Stress Tests Say Bank Needs More Capital BCM IRELAND: Moody's Reviews Low-B Ratings for Possible Downgrade CHESS CAPITAL: Moody's Cuts Ratings on US$125 Mil. Notes to 'B1' GREEN ISLAND: Moody's Cuts Rating on EUR125 Mil. Notes to 'B1' PALMER SQUARE: S&P Junks Ratings on Eight Classes of European CDOs REBEL BAR: In Talks with Revenue Commissioners to Reopen Ten Pubs THEDFORDE TRADING: Goes Into Receivership; BDO Simpson Appointed I T A L Y ALITALIA SPA: Bondholders Balk at Compensation Plan K A Z A K H S T A N BIART STROY: Creditors Must File Claims by May 22 CIS MANAGEMENT: Creditors Must File Claims by May 22 GRANT POST: Creditors Must File Claims by May 22 JYLY LLP: Creditors Must File Claims by May 22 KAIR LTD: Creditors Must File Claims by May 22 MART-AGRO LLP: Creditors Must File Claims by May 22 SAN DINA: Creditors Must File Claims by May 22 SARYKOBDA-XXI LLP: Creditors Must File Claims by May 22 SHARLOTA LUX: Creditors Must File Claims by May 22 VOSTOK DOR: Creditors Must File Claims by May 22 K Y R G Y Z S T A N SIGN MANAGEMENT: Creditors Must File Claims by April 24 R U S S I A BILIBINO AVIA: Under External Management Bankruptcy Procedure BOROVITSKIE VOROTA: Creditors Must File Claims by June 10 BUDAPEST HOTEL: Under External Management Bankruptcy Procedure COMMERCIAL BANK: Moody's Retains 'E+' Bank Fin'l Strength Rating KD OJSC: S&P Withdraws 'CC' Long-Term Corporate Credit Rating LENA-NEFTE-GAZ: Yakutia Bankruptcy Hearing Set June 30 RENAISSANCE CAPITAL: Moody's Downgrades Issuer Ratings to 'B1' SAMPURSKIY DAIRY: Tambovskaya Bankruptcy Hearing Set September 2 SITI TV: Creditors Must File Claims by May 10 STROY-TEKH: Creditors Must File Claims by June 10 TEKHNO-SEVER-NEFT': Creditors Must File Claims by June 10 TETYUSHINSKIY FISH: Creditors Must File Claims by May 10 VOLZHSKIY INVESTMENT: Creditors Must File Claims by May 10 * Fitch Changes Outlooks on Five Russian Banks to Negative * Fitch Affirms Issuer Ratings on Various Russian Banks * RUSSIA: S&P Affirms 'BB+' Rating on Republic of Bashkortostan S W I T Z E R L A N D ATHENEE PRODUCTIONS: Claims Filing Deadline is April 30 BREGESA JSC: Claims Filing Deadline is April 30 EFEF CONSULTING: Claims Filing Deadline is April 30 FRANCO STANISCIA: Claims Filing Deadline is April 29 M.B. RADIOLOGIE-DIENST: Claims Filing Deadline is April 29 TCI JSC: Claims Filing Deadline is April 29 TRIARTE JSC: Claims Filing Deadline is April 30 VERS INVEST: Claims Filing Deadline is April 27 T U R K E Y AKBANK TAS: Fitch Affirms Long-Term Issuer Default Rating at 'BB' GARANTI FAKTORING: Fitch Affirms 'BB' LT Issuer Default Rating TURKIYE GARANTI: Fitch Affirms LT Issuer Default Rating at 'BB' U K R A I N E ALANSON LLC: Creditors Must File Claims by May 2 ANDIN LLC: Creditors Must File Claims by May 2 DONETSK HARDWARE: Creditors Must File Claims by May 2 HYPPO-L LLC: Court Starts Bankruptcy Supervision Procedure LIANT LTD: Creditors Must File Claims by May 2 MMK DNIPRO: Creditors Must File Claims by May 2 REGION TRADE: Creditors Must File Claims by May 2 RIKONT LLC: Creditors Must File Claims by May 2 RUSANOVKA MEAT-PACKING: Court Starts Bankruptcy Procedure UROZHAYNAYA NIVA LLC: Creditors Must File Claims by May 2 VANT-SOUTH LLC: Creditors Must File Claims by May 2 U N I T E D K I N G D O M CASTLE GRANITE: Placed In Administration; Begbies Appointed BRITISH ENERGY: Centrica In Talks with EDF Over 25% Stake DAWSON NEWS: To Lose Two Major Contracts Worth GBP125 Million GLOBE PUB: Heineken Buys 30 Percent of Senior Debt at a Discount HUGO'S LTD: Appoints Joint Administrators from BDO Stoy Hayward JTF HOLDINGS: Taps Joint Administrators from Ernst & Young JTF LTD: Brings in Joint Administrators from Ernst & Young MADOFF SECURITIES: Liquidators Seize Vintage Aston Martin MONEY PARTNERS: S&P Cuts Rating on Class B1 Notes to 'BB+' OILEXCO INC: Premier Shareholders Back Acquisition of North Sea RD GROUP: Appoints Joint Administrators from KPMG ROYAL BANK: Bankinter Buys Share in Spanish Insurance JV * PwC Says Emerging Markets Still Attractive for UK Investment * Fitch Says European Incumbent Telecom Operators are at Risk ********* ============= A U S T R I A ============= B.T. LLC: Claims Registration Period Ends May 6 ----------------------------------------------- Creditors owed money by LLC B.T. (FN 235431y) have until May 6, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Stefan Langer Ölzeltgasse 4 1030 Vienna Austria Tel: 712 63 02, 713 61 92 Fax: DW 22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on May 20, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 9, 2009, (Bankr. Case No. 2 S 32/09g). BWK PUBLISHING: Claims Registration Period Ends May 6 ----------------------------------------------------- Creditors owed money by LLC BWK Publishing (FN 221447h) have until May 6, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on May 20, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 9, 2009, (Bankr. Case No. 2 S 31/09k). ECO LLC: Claims Registration Period Ends May 6 ---------------------------------------------- Creditors owed money by LLC Eco (FN 41269s) have until May 6, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Martina Simlinger-Haas Reisnerstrasse 31 1030 Vienna Austria Tel: 713 99 46 Fax: DW 22 E-mail: ra.reisnerstr31@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on May 20, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 10, 2009, (Bankr. Case No. 2 S 34/09a). GARVENS SERVICE: Claims Registration Period Ends May 5 ------------------------------------------------------ Creditors owed money by LLC Garvens Service (FN 122185i) have until May 5, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Georg Freimueller Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51-Serie Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on March 30, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 19, 2009, (Bankr. Case No. 4 S 42/09t). GIGA LLC: Claims Registration Period Ends May 5 ----------------------------------------------- Creditors owed money by LLC Giga (FN 311859t) have until May 5, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ulrike Bauer Elisabethstrasse 26 1010 Vienna Austria Tel: 587 78 20 Serie Fax: 587 78 20 9 E-mail: ra.bauer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on May 19, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 19, 2009, (Bankr. Case No. 4 S 43/09i). SCHWERTRANS ERLACHER: Claims Registration Period Ends May 5 ----------------------------------------------------------- Creditors owed money by LLC Schwertrans Erlacher (FN 266469t) have until May 5, 2009, to file written proofs of claim to the court- appointed estate administrator: Christopher Schuster Fabrikstrasse 3 4020 Linz Austria Tel: 77 33 33-0 Fax: 77 33 33-44 E-mail: ra-schuster@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on May 19, 2009, for the examination of claims at: Land Court of Linz (458) Room 522 Linz Austria Headquartered in Neufelde, Austria, the Debtor declared bankruptcy on March 18, 2009, (Bankr. Case No. 17 S 10/09h). THEATECH LLC: Claims Registration Period Ends May 4 --------------------------------------------------- Creditors owed money by LLC Theatech (FN 45535p) have until May 4, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Aldo Frischenschlager Landstrasse 15 4020 Linz Austria Tel: 0732/77 72 38 Fax: 0732/77 72 38 11 E-mail: rae@frischenschlager-gallistl.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on May 18, 2009, for the examination of claims at: Land Court of Linz (458) Room 522 Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on March 16, 2009, (Bankr. Case No. 12 S 23/09h). TOURISM MANAGEMENT: Claims Registration Period Ends May 5 --------------------------------------------------------- Creditors owed money by LLC Tourism Management (FN 269200h) have until May 5, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Ulla Reisch Praterstrasse 62-64 1020 Vienna Austria Tel: 212 55 00 Fax: 212 55 00 5 E-mail: office.vienna@ulsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on May 19, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 18, 2009, (Bankr. Case No. 28 S 49/09y). =========== F R A N C E =========== BELVEDERE SA: Creditor Group Proposes Restructuring Plan -------------------------------------------------------- Heather Smith at Bloomberg News reports a committee representing a majority of Belvedere SA's Floating Rate Note holders proposed a restructuring plan Tuesday aimed to cut the company's debt by more than EUR400 million (US$518 million). The report says according to an e-mailed statement from the creditor group, the plan would allow the company to cut gross debt to EUR175 million from EUR600 million by converting some debt to equity and selling "non-strategic assets". Bloomberg News recalls the French vodka maker filed for pre- insolvency protection on July 16, 2008, after breaching the FRN covenant by repurchasing more of its stock than terms allowed. James Regan at Reuters relates Belvedere said in a statement an underperformance in its business, hit by a depreciation in the Polish zloty currency, had made its debt burden unsustainable and obliged it to take on the recovery plan. "The [creditors] committee would be fully supportive of such a recovery plan, which they believe is in the best interest of all Belvedere SA's stakeholders," the company said in the statement cited by Reuters. The creditors committee said in a statement obtained by Reuters that Belvedere should issue a new five-year debt instrument of about EUR75 million, compared with the original floating-rate note issue of EUR375 million. The remaining EUR300 million and interest should be paid partly through the immediate use of excess cash on Belvedere's balance sheet and partly through the sale of non-strategic assets over three to four months, the committee said as cited by Reuters. Based in Beaune, France, Belvedere SA (EPA:BVD) --- http://www.belvedere.fr/--- is engaged in the production and distribution of beverages. The Company's range of products includes vodka, spirits and wines, among others. Belvedere SA operates through its subsidiaries, including Menada Vineyards, Dubar, Belvedere Scandinavia, Belvedere Slovakia and Vremena Goda. It is present in a number of countries, such as Poland, Lithuania, Bulgaria, Denmark, Spain, Switzerland, Russia, Ukraine, the United States, Canada, Brazil and China. ============= G E R M A N Y ============= ARCANDOR AG: Mulls Asset Sale, Needs EUR900 Mln over 5 Years ------------------------------------------------------------ Holger Elfes at Bloomberg News reports Arcandor AG will put luxury stores including Berlin's KaDeWe in a separate unit, preparing their potential sale as the company struggles with debt. According to the report, Chief Executive Officer Karl-Gerhard Eick called for landlords to cut rents and said the company needs new loans of as much as EUR900 million (US$1.2 billion) over five years. Mr. Eick, the report relates, also said Arcandor must renegotiate credit lines worth about EUR950 million by September, and extend credit lines of more than EUR600 million in June. Arcandor, which employs about 70,000, plans to cut costs by EUR7 billion over three years by combining purchasing for all retail units, according to the report. The company incurred a EUR745.7 million loss in fiscal 2008. Meanwhile, Bloomberg News says the 128-year-old retailer may also consider seeking German aid. "Support from banks, this is crystal-clear, won't be enough," Bloomberg News quoted Mr. Eick as saying. "We are in talks with the federal government about making use of stimulus programs." German Economy Ministry spokeswoman Beatrix Brodkorb, as cited by Bloomberg News, said Arcandor can tap a EUR100-billion state fund for loans and guarantees. Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/ -- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. ASCARON ENTERTAINMENT: Goes Into Administration ----------------------------------------------- Ascaron Entertainment GmbH, Germany, went into administration at the regional court in Bielefeld, Germany, on Tuesday April 14, 2009. Through this action Ascaron is now protected by German administration rights. Ascaron intends to use this as an opportunity to secure the future of both the company and its employees. Ascaron said it has completed the development of Sacred 2 Playstation3 and Xbox 360. The necessary approvals have been received by Sony and Microsoft, the company said. Both console versions of Sacred 2: Fallen Angel will hit the shelves by the end of May 2009. According to the company, the development team is currently working on a Sacred 2 PC expansion and on the development of the sequel, Sacred 3. Ascaron said after four years developing Sacred 2: Fallen Angel, an extended development delay made it necessary for the company to go into administration. Even with the high personal commitment of all Ascaron employees it was not possible to make up for this delay, the company said. Ascaron has already begun negotiations with several well-known interested parties to discuss a positive takeover. G-LEC: Goes Into Administration Following Poor Trading ------------------------------------------------------ G-LEC has been put into administration following two consecutive months of poor trading in January and February, Lighting&Sound International reports citing company founder and managing director Lars Wolf. The report relates Mr. Wolf said a rescue package was agreed with the company's bank after it was found out a misallocation of assets by an external agency had given a false impression of the company's position at the end of 2008. The business is continuing to trade as normal, taking orders and providing equipment, the report says. The report discloses according to Mr. Wolf, there are a number of companies interested in acquiring aspects of the G LEC operation. Based in Oetigheim, Germany, G-LEC is a manufacturer of transparent LED video screen products for the events and architectural markets. HEIDELBERGCEMENT AG: In Refinancing Talks, Seeks Two-Part Waiver ---------------------------------------------------------------- HeidelbergCement AG is in refinancing talks with banks, Tessa Walsh and Zaida Espana at Reuters report citing banking sources. Reuters, citing a banker close to the deal, says HeidelbergCement is seeking a complex two-part loan waiver that will allow the company to improve its short and medium-term liquidity and iron out a challenging debt maturity profile. Reuters relates two bankers close to the deal said HeidelbergCement is in talks to extend the maturity of a GBP5.33 billion tranche of a multibillion multicurrency loan that backed its acquisition of Hanson in 2007. Reuters states according to the company, the loan was redenominated into euros and consists of a EUR600 million tranche which matures this year and a EUR5 billion tranche which matures in 2010. HeidelbergCement is seeking to extend the tenor of this debt in a first phase of the waiver and has asked to postpone the maturity of the EUR5 billion tranche from May 14, 2010 until July 17, 2010, Reuters discloses citing the two bankers. Reuters notes according to the two bankers, the extension will buy the company time to complete a larger medium-term refinancing of around EUR8.8 billion that will extend the maturity of the maturing loans, other existing bilateral loans and one bridge loan until December 2011. The medium-term refinancing is expected to consist of three tranches -- a EUR5.6 billion term loan A, a EUR1.3 billion term loan B and a EUR1.9 billion term loan C, which pay 400 basis points, Reuters says citing the second banker close to the deal. Reuters discloses according to the first banker, the new waiver is being arranged by Deutsche Bank and Royal Bank of Scotland, along with Nordea and Commerzbank. Morgan Stanley is acting as advisor to HeidelbergCement, Reuters states. Reuters notes several bankers said the first phase of the waiver had already been discussed with lenders and that bankers were inclined to agree to the request, while the second phase is viewed as more difficult as banks will have to renew their commitments. About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI) -- http://www.heidelbergcement.com/-- is a global producer of cement, concrete and building materials. The Company's core activities include the production and distribution of cement and aggregates, the two raw materials for concrete. It is also engaged in in the provision of such products as ready-mixed concrete, as well as concrete products and elements. It divides its activities into four group areas: Europe-Central Asia, North America, Asia-Australia-Africa-Mediterranean and Group Services. It divides its products into three lines: cement, aggregates and concrete and building products. Its products include sand, gravel, crushed stone, white cement, trass cement, masonry cement, aquament and portland cement for hydraulic engineering, as well as light, heavy and aerated concrete building blocks, pavers, prefabricated ceilings and walls, prefabricated cellar units and prefabricated sewage works units, among others. In 2007, the Company took over Hanson Group. * * * As reported in the Troubled Company Reporter-Europe on March 10, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on HeidelbergCement AG to 'B-' from 'B+'. The 'B' short-term corporate credit rating was affirmed. At the same time, the senior unsecured debt ratings were lowered to 'CCC+' from 'B'. All ratings remain on CreditWatch negative where they were placed on Oct. 24, 2008. On Feb. 11, 2009, the TCR-Europe reported that Moody's Investors Service downgraded HeidelbergCement's corporate family and issue ratings to B1 from Ba3. The ratings were put on review for further downgrade. HYPO REAL ESTATE HOLDING: Gov't Eyes Majority Control by June 30 ---------------------------------------------------------------- The German government, which owns a stake of only 8.7 percent in Hypo Real Estate Holding AG, is seeking majority control of the lender by June 30, Edward Taylor at Reuters reports citing offer documents published on Friday. The German government has given shareholders like J Christopher Flowers until June 30 to sell Hypo Real Estate shares or face expropriation, Reuters says. Reuters discloses the offer document said if the government doesn't have assurances "that it will be able to acquire all HRE shares" by June 30, it intends to "initiate an expropriation procedure". However, Reuters notes Mr. Flowers through a spokesman said he is studying the offer but he would prefer to remain a shareholder of Hypo Real Estate. According to Reuters, Germany's Financial Market Stabilisation Fund, which launched a voluntary takeover offer of EUR1.39 a share, could implement a capital increase excluding subscription rights of the shareholders as a way to sideline Mr. Flowers and gain control of lender. Reuters states by launching a capital increase without subscription rights, the German government will be able to dilute the 22 percent stake held by Mr. Flowers and a consortium of shareholders. As reported in the Troubled Company Reporter-Europe on April 14, 2009, Bloomberg News said Germany's bank-rescue fund, Soffin, offered EUR1.39 (US$1.84) a share, or about EUR290 million, to acquire all of Hypo Real Estate Holding AG's outstanding shares. The move was aimed to keep HRE from insolvency which "would have substantial, barely quantifiable consequences for the national and international financial markets," Soffin said in a statement obtained by Bloomberg News. "This in turn would have a considerable impact on the entire national economy." Bloomberg News recalled Germany already provided EUR102 billion of credit lines and debt guarantees to sustain HRE after a funding shortage at its Dublin-based Depfa Bank Plc unit brought the company to the brink of bankruptcy. According to Bloomberg News, Germany's upper house of parliament backed legal steps allowing banks to be nationalized on April 3, which President Horst Koehler subsequently signed into law. The bill was approved by Chancellor Angela Merkel on Feb. 18. Bloomberg News related J.C. Flowers & Co., which leads a group of investors holding 24 percent of the bank, said it may take legal action to block nationalization. As reported in the Troubled Company Reporter-Europe on March 24, 2009, Andrea Thomas at The Wall Street Journal said Germany's lower house of parliament backed a bill allowing nationationalization of HRE for a specified time period, but only as a last resort. According to international broadcaster Deutsche Welle, 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. "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. 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." INFINEON: RBS Lifts Rating to Buy; In Talks Over State Guarantee ---------------------------------------------------------------- Aude Lagorce at MarketWatch reports that Royal Bank of Scotland raised its rating on Infineon Technologies AG to buy from hold as it believes the company now has realistic options to refinance its 2010 debt. MarketWatch relates the broker said Infineon could receive some financial aid from the German government, effectively reducing the risk of a rights issue. On April 18, 2009, Peter Starck and Jens Hack at Reuters, citing the German newspaper Welt am Sonntag, reported that Infineon is in talks with the German government about receiving a several hundred million euro state guarantee. Reuters disclosed Welt am Sonntag said the company, which must refinance more than EUR900 million (US$1.18 billion) worth of corporate bonds and other credits by June 2010, wants a decision on state support at the latest in July. Reuters said an Infineon spokesman declined to comment on the report. Infineon Technologies AG -- http://www.infineon.com-- is a semiconductor company. The Company designs, develops, manufactures and markets a range of semiconductors and complete systems solutions used in a variety of microelectronic applications, including computer systems, telecommunications systems, consumer goods, automotive products, industrial automation and control systems, and chip card applications. Its products include standard commodity components, full-custom devices, semi-custom devices and application-specific components for memory, analog, digital and mixed-signal applications. The company has operations, investments and customers located in Europe, Asia and North America. Infineon operates through its five business segments: Automotive, Industrial and Multimarket, Chip Card and Security, Wireless Solutions and Wireline Communications. Infineon's memory products business is conducted through its subsidiary, Qimonda AG. INGENIEURSGESELLSCHAFT MBH: Claims Registration Ends April 29 ------------------------------------------------------------- Creditors of Ingenieursgesellschaft mbH 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 10:10 a.m. on May 14, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Wilhelm Klaas Eichendorffstrasse 25 47800 Krefeld Germany Tel: 0215180580 Fax: 02151805858 The court opened bankruptcy proceedings against the company on April 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ingenieursgesellschaft mbH Fritz-Peters-Strasse 20 H 47447 Moers Germany Attn: Egon Schmieding, Manager Koenigstrasse 73 47475 Kamp-Lintfort Germany PULS GMBH: Claims Registration Period Ends May 15 ------------------------------------------------- Creditors of PULS GmbH have until May 15, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on June 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cologne Room 142 Luxemburger Strasse 101 50939 Cologne Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Holger-Rene Bruckhoff Im Zollhafen 18 50678 Koeln Germany Tel: 0221/7716-322 Fax: +492217716335 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: Puls GmbH Attn: Falko Fuhrmann, Manager Birkenweg 1 83242 Reit im Winkl Germany SIGU GMBH: Claims Registration Period Ends May 25 ------------------------------------------------- Creditors of Sigu GmbH have until May 25, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on June 29, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of 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: Joachim Buettner Osdorfer Landstrasse 230 22549 Hamburg Germany The court opened bankruptcy proceedings against the company on April 2, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sigu GmbH Attn: Sylwia Czugala, Manager Baubetreuung-Bauplanung Ratsmuehlendamm 26 22335 Hamburg Germany SMM PARTNER: Claims Registration Period Ends May 25 --------------------------------------------------- Creditors of SMM Partner Hauser GmbH have until May 25, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 2:10 p.m. on June 24, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heiko Kratz Fregestrasse 29 04105 Leipzig Germany Tel: 0341/462220 Fax: 0341/4622279 E-mail: ra.heikokratz@kanzlei-kratz.com The court opened bankruptcy proceedings against the company on April 3, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SMM Partner Hauser GmbH Teichstr. 1 04683 Fuchshain Germany Attn: Heinz Wolfgang Winkler, Manager Teichstr. 1 04683 Naunhof OT Fuchshain Germany STANDARD METALLWERKE: Claims Registration Period Ends May 20 ------------------------------------------------------------ Creditors of Standard Metallwerke Holding GmbH have until May 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on June 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 Arnsberg Meeting Room 328 Eichholzstr. 4 59821 Arnsberg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Wolfgang Koehler Schubertstr. 31 59581 Warstein Germany The court opened bankruptcy proceedings against the company on April 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Standard Metallwerke Holding GmbH Rustigestrasse 11 59457 Werl Germany Ruediger Siepmann, Manager Welland 10 59510 Lippetal Germany ============= I C E L A N D ============= KAUPTHING BANK: Secures Funds to Repay German Edge Depositors ------------------------------------------------------------- The Icelandic government in an April 17 press statement said Kaupthing Bank has secured sufficient funds to repay all deposits back to depositors of Kaupthing Edge Germany. Kaupthing Bank has been committed to paying back all priority claims as quickly as possible and has placed great importance on settling the claims of the depositors of Kaupthing Edge Germany, the government said. When this repayment has been made, Kaupthing Bank will have repaid all deposits defined by Icelandic law as priority claims, i.e. deposits made at the parent company and at branches belonging to the parent company. The government said despite great efforts, due to various complications, this process has been more time consuming than originally anticipated. Most of these difficulties have now been resolved. However, Kaupthing Bank is still working on some technical issues with regard to the payment procedure, the government noted. The government disclosed DZ Bank AG, which was appointed as the payment agent for Kaupthing Edge Germany customers, seized EUR55 million, which in the opinion of Kaupthing Bank should have been used to reimburse German Kaupthing Edge depositors. There is every indication that this matter will have to be resolved in court but it will not affect the Bank's decision to pay out all deposits. According to the government, Kaupthing Bank and the German authorities have had comprehensive discussions on this matter in the last few months to develop a solution which fully ensures the secure repayment of deposits to the Bank's customers. Kaupthing Edge depositors will receive a letter from the Bank outlining the payment procedure. Customers will have the opportunity to change their contact and account details. Thereafter, the balance of deposits as it was when Kaupthing Edge Germany was placed into moratorium will be repaid. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. * * * As reported in the Troubled Company Reporter on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. Citing a court filing by Olafur Gardarsson, Reuters disclosed Kaupthing has about US$14.8 billion of principal assets, including US$222 million located in the United States, and US$26 billion of principal indebtedness. ============= I R E L A N D ============= ALLIED IRISH: Stress Tests Say Bank Needs More Capital ------------------------------------------------------ Ian Guider at Bloomberg News reports Allied Irish Banks Plc may sell assets after government stress tests indicated the company needs EUR1.5 billion (US$1.95 billion) of additional capital. The bank however didn't say what it may sell after a "reappraisal" of its asset disposal policy, the report says. Allied Irish's need for capital emerged after the government carried out stress tests on the bank's loans, Finance Minister Brian Lenihan said in a statement obtained by Bloomberg News. "The evidence of deterioration of the bank's land and development book confirms the need to speedily establish the National Asset Management Agency so that these bad loans can be taken off the bank balance sheets," Minister Lenihan said. Bloomberg News relates under the National Asset Management Agency, the Irish government will buy real estate loans from the country's lenders at "significantly less" prices. The Irish government is investing EUR3.5 billion in the bank, the report notes. The move will help Allied Irish increase core Tier 1 capital, a measure of financial strength, by EUR5 billion by the end of the year, Bloomberg News cited the lender as saying in a statement. The report recalls Allied Irish last month said it faced a loss of as much as EUR4 billion on real estate loans this year as Ireland's property market crumbles. Headquartered in Dublin, Ireland, Allied Irish Banks, plc (NYSE:AIB) -- http://www.aibgroup.com/-- together with its subsidiaries (collectively referred to as the AIB Group or the Group), conducts retail and commercial banking business in Ireland. It also provides corporate lending and capital markets activities from its head office at Bankcentre and from Dublin's International Financial Services Centre. The Group also has overseas branches in the United States, Germany, France and Australia, among other locations. The business of AIB Group is conducted through four operating divisions: AIB Bank Republic of Ireland division, Capital Markets division, AIB Bank UK division, and Central & Eastern Europe division. In February 2008, the Group acquired the AmCredit mortgage business in the Baltic states of Latvia, Lithuania and Estonia. In September 2008, the Group also acquired a 49.99% shareholding in BACB. BCM IRELAND: Moody's Reviews Low-B Ratings for Possible Downgrade ----------------------------------------------------------------- Moody's Investors Service has placed the ratings of BCM Ireland Finance Ltd and its affiliated entities on review for possible downgrade. BCMIF is an indirect parent company of eircom. This action follows last week's announcement that eircom's main shareholder Babcock & Brown Capital has received an unsolicited EUR95 million offer from Taemas Bridge consortium. Taemas Bridge has three founding partners who were previously associated with Babcock & Brown Ltd. The BCM board is currently evaluating the proposal, alongside others that they have received, and intends to provide a comprehensive strategic update to BCM shareholders at the General Meeting on April 27, 2009. Regardless of the likelihood of success of these offers, the action is also prompted by other concerns unrelated to these bids that Moody's has been considering, including among other things: (i) the overall strategic direction of the company (as BCM is believed to be considering alternatives for maximizing the value of its investments); (ii) eircom's weakening performance trends in the midst of enhanced competition, regulatory pressures and an adverse macro economic environment, as well as the impact going forward on meeting future commitments under facility documentation; and (iii) the impact from pension deficits and cost restructuring measures on future cash outflows putting further pressure on free cash flow generation and credit metrics. The Taemas Bridge offer incorporates elements which could result in a debt restructuring of the restricted group. In this regard, Moody's notes that any restructuring involving a discounted offer on debt components of the capital structure could be considered a distressed exchange and, by implication, a default under Moody's methodologies. Ratings are placed on review whilst Moody's evaluates the implications of these offers on the restricted group's debt structure including potential impact of change of control provisions, as well as Moody's revised expectations and outlook for the business and financial trends for the group and the implications of these announcements and management's strategic drives and cost cutting measures on the group's financial flexibility, covenant headroom, cash flow generation capacity prospects, credit metrics, liquidity and outlook. The ratings affected by the rating action are: -- BCMIF's B1 corporate family rating and EUR350 million senior unsecured floating rate notes due 2016 at B3. -- BCM Ireland Holdings Limited (BCMIHL)'s EUR3.3 billion senior secured bank credit facilities at Ba3 and EUR350 million second-lien loan due 2016 at B3. The last rating action was implemented on March 20, 2007, when Moody's downgraded BCMIF's CFR to B1 from Ba3 and the ratings of its affiliated entities accordingly. BCMIF and BCMIH are holding companies of eircom, the principal provider of fixed-line telecommunications services in Ireland and, following its acquisition of Meteor, the third largest mobile operator in Ireland. In the six months ending December 30, 2008, eircom generated revenues of EUR1,030 million. CHESS CAPITAL: Moody's Cuts Ratings on US$125 Mil. Notes to 'B1' ---------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of one class of notes issued by CHESS Capital Securities plc. The transaction represents a repackaging of EUR125,000,000 4.830 per cent. Step-up Guaranteed Non-cumulative Perpetual Capital Securities of EBS Capital No. 1 S.A. (the "Collateral"). The rating action follows the downgrade of the Collateral to B1 from Baa1. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for repackaged securities as described in Moody's Special Reports below: -- Repackaged Securities (October 2001) -- Moody's Refines Its Approach to Rating Structured Notes (July 1997) The rating action is: CHESS Capital Securities plc: (1) EUR125,000,000 Perpetual Tier-One Pass-Through Securities -- Current Rating: B1 -- Prior Rating: Baa1 -- Prior Rating Date: 28 October 2008, downgraded to Baa1 from A3 GREEN ISLAND: Moody's Cuts Rating on EUR125 Mil. Notes to 'B1' -------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of one class of notes issued by Green Island Capital Securities plc. The transaction represents a repackaging of EUR125,000,000 Floating Rate Guaranteed Non-Cumulative Perpetual Capital Securities of EBS Capital No. 1 S.A. (the "Collateral"). This rating action follows the downgrade of the Collateral to B1 from Baa1. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for repackaged securities as described in Moody's Special Reports below: -- Repackaged Securities (October 2001) -- Moody's Refines Its Approach to Rating Structured Notes (July 1997) The rating action is: Green Island Capital Securities plc: (1) EUR125,000,000 Perpetual Tier-One Pass-Through Securities -- Current Rating: B1 -- Prior Rating: Baa1 -- Prior Rating Date: 24 October 2008, downgraded to Baa1 from A3 PALMER SQUARE: S&P Junks Ratings on Eight Classes of European CDOs ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on all classes issued by Palmer Square 2 PLC, a European collateralized debt obligation of asset-backed securities transaction. S&P also affirmed its ratings on the class X1 and X2 notes. As reported in the last trustee report available to S&P, the class A3, B, and C par value ratio tests are currently below the required levels as set out in the transaction documentation. The rating actions reflect S&P's assessment of a further deterioration in the credit quality of the underlying portfolios due to their exposure to U.S. CDOs of ABS and residential mortgage-backed securities, as well as the application of updated recovery rate calculations and revised notching rules. The negative credit migration has led to an increase in the scenario default rates that in S&P's opinion may not be supported by current credit enhancement. The updated recovery rate calculations have led to a fall in the break-even default rates (when subject to S&P's cash flow analysis). As a result, S&P believes current credit enhancement cannot support the rise in scenario default rates at existing ratings levels. S&P lowered the class B and C notes to 'CC', as S&P think it unlikely that the portfolio would currently be able to pay out these notes in full. S&P will closely monitor the transaction's performance. Ratings List Palmer Square 2 PLC US$2,012 Million Asset-Backed Floating-Rate Notes Ratings Lowered and Removed from Creditwatch Negative Rating ------ Class To From ----- -- ---- A1M-A CCC A-/Watch Neg A1M-B CCC A-/Watch Neg A1Q-A CCC A-/Watch Neg A1Q-B CCC A-/Watch Neg A2-A CCC- BB/Watch Neg A2-B CCC- BB/Watch Neg A3-A CCC- B-/Watch Neg A3-B CCC- B-/Watch Neg B-1 CC CCC-/Watch Neg B-2 CC CCC-/Watch Neg C CC CCC-/Watch Neg Ratings Affirmed Class Rating ----- ------ X1 AAA X2 AAA REBEL BAR: In Talks with Revenue Commissioners to Reopen Ten Pubs ----------------------------------------------------------------- The Sunday Business Post Online's Ian Kehoe reports that Rebel Bar Company's liquidator, KPMG accountant Kieran Wallace, is in talks with the Revenue Commissioners about renewing the licenses of ten of the chain's pubs in an effort to save 125 jobs. The report relates ten of the pubs in the group, which racked up debts of EUR2.6 million, have been closed down due to licensing issues. According to the report, staff at the pubs have been placed on "temporary layoff", pending the outcome of the negotiations with the Revenue. The report notes a number of other pubs in the chain are continuing to trade. The report says if successful, Mr. Wallace, who was appointed provisional liquidator of Rebel Bar following a petition to the court by the company's directors, plans to open the premises in the coming weeks. The full hearing on the appointment is due in the High Court later this month, the report states. As reported in the Troubled Company Reporter-Europe, the Sunday Business Post Online said the company, owned by Cork businessmen Tom and Sam Scriven, told the High Court on April 3 that it was no longer in a position to meet its debts, triggering the appointment of the liquidator. According to the report, the company had suffered from the decline in the drink and hospitality sector and the overall deterioration in the Irish economy. The report disclosed the company's establishments include the Savoy Music Venue on Patrick Street in the city, the Manhattan bar in Ballyphehane in Cork, Sam's Bar in Ballincollig and Lakelands in Mahon Point in Cork. THEDFORDE TRADING: Goes Into Receivership; BDO Simpson Appointed ---------------------------------------------------------------- The Sunday Business Post Online's Ian Kehoe reports that Thedforde Trading, the company behind the Bewley's cafe on Westmoreland Street in Dublin, has gone into receivership. The report relates AIB has appointed Jim Hamilton, a partner with BDO Simpson Xavier in Dublin, as receiver and manager of the Bewley's building on Westmoreland Street, which was acquired by Thedforde Trading from Campbell Bewley Group in 2006. According to the report, the bank closed in on the property after becoming concerned about the funds. AIB, the report says, has a charge over the company's assets dating back to 2006. Citing company filings, the report discloses Thedforde Trading owed the bank EUR19.75 million at the end of May 2007. Thedforde Trading is controlled by Simon Kelly, the son of Dublin property developer Paddy Kelly, the report notes. ========= I T A L Y ========= ALITALIA SPA: Bondholders Balk at Compensation Plan --------------------------------------------------- Tommaso Ebhardt and Marco Bertacche at Bloomberg News report Alitalia SpA bondholders staged a protest to pressure Prime Minister Silvio Berlusconi's government to bolster payouts after a state compensation plan would wipe out more than half of the EUR234 million (US$304 million) owed by the carrier. According to the report, creditors led by Anima SGR met in Rome Monday to oppose a EUR100 million reimbursement plan passed by the parliament April 8. In an earlier report, Bloomberg News said Italy has set aside EUR100 million (US$133 million) to partially reimburse owners of Alitalia bonds. Under the plan, the report said bondholders would recoup 50 percent of the average value of the bonds in their last month of trading, corresponding to about 32 percent of nominal value, for a maximum of EUR100,000 per investor. The Italian government may increase the reimbursement to 50 percent of the nominal value, newspaper MF said in an April 17 report obtained by Bloomberg News. Bloomberg News relates Anima and 700 holders who together hold about 4 percent of the convertible bonds argue that the state has broken a promise to protect stock and bondholders during last year’s bailout of the unprofitable flagship airline. As reported in the Troubled Company Reporter-Europe, Bloomberg News said on April 15, Anima, the fund manager bought by Banca Popolare di Milano Scrl, asked market regulator Consob to suspend the government's reimbursement plan citing "serious violations" of Italian rules on public offers. "The Ministry of Economy's offer to swap Alitalia bonds for Italian government bonds includes evident and total violations of Italian law," Bloomberg News quoted Anima as saying in a filing to the regulator, Consob. About Alitalia Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. As reported in the Troubled Company Reporter-Europe on Jan. 13, 2009, Bloomberg News said Air France-KLM Group agreed to pay EUR323 million (US$432 million) for 25 percent of Alitalia SpA. The deal includes a lock-in commitment for Compagnia Aerea Italiana s.r.l. ("CAI") investors to maintain their combined holding in Alitalia for four years, Bloomberg News said. CAI, an Italian investor consortium, took over Alitalia's assets in December 2008. Bloomberg News said CAI's takeover of Alitalia was valued at EUR1.05 billion, including EUR625 million of debt. In a TCR-Europe on Dec. 15, 2008, Reuters disclosed that Alitalia's smaller rival, Air One SpA, agreed to sell its operations to CAI. The purchase of Air One is part of CAI's rescue plan for Alitalia. As reported in the TCR-Europe on November 7, 2008, Alitalia S.p.A. filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York. Italy's national airline experienced financial difficulties for a number of years caused, in large measure, by a combination of competition from low-cost air carriers, poor management and onerous union obligations, according to papers filed with the court. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million in 2006, and EUR494.64 million in 2007. In the petition filed October 29, 2008, Prof. Augusto Fantozzi, the appointed administrator, said the airline's financial difficulties have been and exacerbated by spiraling fuel prices. On Aug. 29, 2008, Alitalia declared insolvency and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi appointed Mr. Fantozzi as extraordinary commissioner. Under the Bankruptcy Bill, the Administrator has supplanted the directors and other management of Alitalia. =================== K A Z A K H S T A N =================== BIART STROY: Creditors Must File Claims by May 22 ------------------------------------------------- LLP Biart Stroy has declared insolvency. Creditors have until May 22, 2009, to submit written proofs of claim to: Panfilov St. 24-43 Almaty Kazakhstan CIS MANAGEMENT: Creditors Must File Claims by May 22 ---------------------------------------------------- Branch of LLP CIS Management has declared insolvency. Creditors have until May 22, 2009, to submit written proofs of claim to: Gagarin Ave. 206-27 Almaty Kazakhstan GRANT POST: Creditors Must File Claims by May 22 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Grant Post insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan JYLY LLP: Creditors Must File Claims by May 22 ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Kazakhstan Jyly insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan KAIR LTD: Creditors Must File Claims by May 22 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kair Ltd. insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Satpayev St. 16 Aktobe Aktube Kazakhstan MART-AGRO LLP: Creditors Must File Claims by May 22 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Mart-Agro insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk St. 53 Taldykorgan Almaty Kazakhstan SAN DINA: Creditors Must File Claims by May 22 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP San Dina insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: Abai St. 92 Astana Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan SARYKOBDA-XXI LLP: Creditors Must File Claims by May 22 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Sarykobda-XXI insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Satpayev St. 16 Aktobe Aktube Kazakhstan SHARLOTA LUX: Creditors Must File Claims by May 22 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Firm Sharlota Lux insolvent. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan VOSTOK DOR: Creditors Must File Claims by May 22 ------------------------------------------------ LLP Vostok Dor Mash Service has declared insolvency. Creditors have until May 22, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== SIGN MANAGEMENT: Creditors Must File Claims by April 24 ------------------------------------------------------- Creditors of LLC Representation of Company Sign Management Corp. have until April 24, 2009, to submit proofs of claim. The company can be reached at: LLC Representation of Company Sign Management Corp. Tel: (+996 312) 31-15-15 =========== R U S S I A =========== BILIBINO AVIA: Under External Management Bankruptcy Procedure ------------------------------------------------------------- The Arbitration Court of Chukotskiy has commenced external management bankruptcy procedure on CJSC Bilibino Avia (Passenger Air-Travel, Cargo Transportation). The case is docketed under No. A80–207/2008. The External Insolvency Manager is: N. Kondratenko Post User Box 174 689000 Anadyr' Russia The Debtor can be reached at: CJSC Bilibino-Avia Oktyabrskaya St. 1/21 Bilibino 689450 Chukotskiy Russia BOROVITSKIE VOROTA: Creditors Must File Claims by June 10 --------------------------------------------------------- Creditors of LLC Borovitskie Vorota Commercial Bank have until June 10, 2009, to submit proofs of claims to: Investment Insurance Agency Acting as Insolvency Manager Post User Box 48 109240 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40–19624/09–88-25B. The Debtor can be reached at: LLC Borovitskie Vorota Building 3 Lenivka St. 3 119019 Moscow Russia BUDAPEST HOTEL: Under External Management Bankruptcy Procedure -------------------------------------------------------------- The Arbitration Court of Moscow has commenced external management bankruptcy procedure on OJSC Budapest Hotel (TIN 707296041, PSRN 1027700253646). The case is docketed under No. A40–60412/08–71– 186B. The External Insolvency Manager is: A. Alyukayev Post User Box 145 105005 Moscow Russia The Debtor can be reached at: OJSC Budapest Hotel Petrovskie Linii St. 2/18 127051 Moscow Russia COMMERCIAL BANK: Moody's Retains 'E+' Bank Fin'l Strength Rating ---------------------------------------------------------------- Moody's Investors Service has downgraded the long-term foreign and local currency deposit ratings and foreign currency senior unsecured debt ratings of Commercial Bank "Renaissance Capital" LLC to B3 from B1. The Not-Prime foreign and local currency short-term ratings as well as E+ bank financial strength rating remain unchanged. The rating action concludes the review process initiated in September 2008 and reflects the impact of the current operating environment in Russia on CBRC. The outlook for the deposit and debt ratings as well as on the BFSR is negative. The downgrade of CBRC's ratings reflects the impact on the bank's franchise value as a result of curtailed lending activities -- with limited ability to resume them in the medium term at levels consistent with previous or anticipated activity. CBRC's banking activities have been adversely affected by potential instability of the funding base which predominantly (over 80%) consists of wholesale funding and funding from the Central Bank of Russia with the majority (up to 80%) being repayable during one year. "The resulting curtailment of business is likely to lead to significant deterioration of franchise and, consequently, deterioration of certain financial metrics, leading to elevated credit risks," said Vladlen Kuznetsov, a Moscow-based Moody's Assistant Vice President-Analyst. In addition, the downgrade of CBRC is also triggered by (i) the respective downgrade of the issuer rating of the sister bank Renaissance Capital Holdings Limited -- the largest segment in the Renaissance group -- to B1 from Ba3, and (ii) a significant reduction of support assumptions because CBRC has grown considerably in relation to RCHL, hence it will be more difficult to provide support, and also because of restrictions on intergroup transactions. Moody's explained that it has applied a number of scenarios (base- case and stressed) to the bank's loan book and revealed that under the base-case scenario RCHL's capital adequacy may decline as soon as the overall asset quality deteriorates. At year-end 2008, CBRC's Tier 1 capital stood at 19% which, together with high yield on loans, enables it to comfortably absorb substantial asset quality deterioration under the base-case scenario without breaching regulatory ratios. However, more significant asset quality deterioration -- as reflected in the stressed scenario -- is likely to significantly impair the bank's capital position. In addition, liquidity is more vulnerable, and a significant asset quality stress is likely to render the bank dependant on rollover of CBR and other funding items. Liquidity is challenged -- apart from short-term maturity of the funding base -- by low granularity of deposits whose behaviour is not easy to predict. The negative outlook reflects Moody's opinion that there is potential for further pressure on CBRC's franchise, financial metrics and funding base as a result of a prolonged and severe economic downturn in Russia. Moody's previous rating action on CBRC was on September 25, 2008, when the deposit and debt ratings were placed on review for a possible downgrade. Based in Moscow, CBRC is a member of Renaissance Capital Consumer Finance Group, the consumer finance segment of the larger Renaissance group, which also includes an investment banking segment, asset management and merchant banking. CBRC reported total consolidated assets of US$2.2 billion and total equity of US$414 million under IFRS at year-end 2008. KD OJSC: S&P Withdraws 'CC' Long-Term Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said it withdrew its 'CC' long- term corporate credit rating and its 'ruCC' Russia national scale rating on Russian property developer OJSC KD Group at the company's request. The outlook on the rating was negative before the withdrawal. LENA-NEFTE-GAZ: Yakutia Bankruptcy Hearing Set June 30 ------------------------------------------------------ The Arbitration Court of Yakutia will convene at 2:30 p.m. on June 30, 2009, to hear bankruptcy supervision procedure on OJSC Lena-Nefte-Gaz (TIN 1414003343, PSRN 1031400598877, RVC 141401001) (Wood-Processing Industry). The case is docketed under Case No. A58–1288/2009. The Temporary Insolvency Manager is: Ye.Semenova 127055 Moscow Russia The Debtor can be reached at: Lenina St. 19 Lensk 678140 Yakutia Russia RENAISSANCE CAPITAL: Moody's Downgrades Issuer Ratings to 'B1' -------------------------------------------------------------- Moody's Investors Service has downgraded the long-term foreign and local currency issuer ratings of Renaissance Capital Holdings Limited to B1 from Ba3. The Not-Prime foreign and local currency short-term ratings remain unchanged. At the same time, Moody's Interfax Rating Agency has downgraded the long-term national scale credit ratings of RCHL to A2.ru from Aa3.ru. Moscow-based Moody's Interfax is majority owned by Moody's, a leading global rating agency. The rating action concludes the review process initiated in September 2008 and reflects the impact of the current operating environment in Russia on RCHL. The outlook for the issuer ratings is negative. The downgrade of RCHL reflects the elevated risks profile of the company as a result of the deterioration of the operating environment which significantly affected the primary markets in which the company operates. The risk/return ratio of these markets has increased significantly as a result of growing uncertainties over the future volatility of the markets and sustainability of revenues. Moody's considers that such an increase is -- at least -- of a medium-to-long term nature. The dislocation of markets in Q4 2008 had a considerable impact on RCHL's financial fundamentals by negatively affecting its liquidity, franchise and profitability. The company experienced reduced revenue-generated capacity (currently 50-60% of the pre- crisis level) which is not likely to reach pre-crisis levels on a sustainable basis at least in the medium term, and is expected to be volatile. In addition, RCHL's significant involvement in financing of other Renaissance group companies together with a rise in market volatility considerably reduced its financial fundamentals. As a result, the net cash capital declined to negative levels and the illiquid risk assets-to-tangible common equity ratio increased to over 100%, leaving its liquidity position with marginal capacity, in Moody's estimation, to withstand a further deterioration of the operating environment. In September 2008, RCHL's new shareholder (Onexim Group (Not Rated)) made a ca. US$500 million loan which will be converted into equity representing 50% minus 1 share once the regulatory approval process is complete. This capital increase is expected to substantially restore these ratios but still to below past levels. Moody's notes that the benefits of additional capitalisation are significantly offset by the elevated risks of the industry and the rise in risks of other segments of the group (which were financed by RCHL) such as the consumer finance segment and private equity. Moody's estimates that in the event of a significant deterioration of the operating environment and resultant market downturn, the losses generated from credit and market risks are likely to impair a significant part of the new equity. The negative outlook reflects Moody's opinion that there is potential for further pressure on RCHL's financial metrics as a result of a prolonged and severe economic downturn in Russia. In addition, failure to accomplish the new capital registration and convert the Onexim loan into equity is likely to exercise significant pressure on the company's liquidity and other financial fundamentals, and is likely to trigger a further rating downgrade. Moody's previous rating action on RCHL was on September 25, 2008, when the foreign and local currency issuer ratings as well as National Scale Rating were placed on review for possible downgrade. Renaissance Capital Holdings Limited is the investment banking arm of the Renaissance Group, which also includes consumer finance, asset management and merchant banking. RCHL reported total consolidated assets of ca. US$3 billion and total equity of ca. US$750 million under IFRS at year-end 2008. Its new shareholder, Onexim group, is active in the mining industry, innovative projects in energy and nanotechnology, real estate and other industries, and has total assets of over US$25 billion. SAMPURSKIY DAIRY: Tambovskaya Bankruptcy Hearing Set September 2 ---------------------------------------------------------------- The Arbitration Court of Tambov will convene on Sept. 9, 2009, to hear bankruptcy supervision procedure on OJSC Sampurskiy Dairy Factory. The case is docketed under Case No. A64–535/2009. The Temporary Insolvency Manager is: O. Kiselev Office 605 Derzhavinskaya St. 16a 392000 Tambov Russia The Debtor can be reached at: OJSC Sampurskiy Dairy Factory Mira St. 20a Satinka Sampurskiy Tambovskaya Russia SITI TV: Creditors Must File Claims by May 10 --------------------------------------------- Creditors of CJSC Siti TV (TIN 7728601560, PSRN 1067760005598) (Cable Television) have until May 10, 2009, to submit proofs of claims to: G. Avagimyan Insolvency Manager 1-iy Proezd Perova Polya 11a 111141 Moscow Russia Tel: (495)306-65-93 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40–79924/08–103-262B. The Debtor can be reached at: CJSC Siti TV Building 2 Rokotova St. 10 117593 Moscow Russia STROY-TEKH: Creditors Must File Claims by June 10 ------------------------------------------------- Creditors of LLC Stroy-Tekh (Construction) have until June 10, 2009, to submit proofs of claims to: A. Khludentsov Insolvency Manager Michurinskaya St. 106 392018 Tambov Russia The Arbitration Court of Ryazanskaya will convene at 12:00 p.m. on Sept. 3, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A54–2876/2008 S1. The Debtor can be reached at: LLC Stroy-Tekh Rostovskiy Pereulok 13 Astrakhan' Russia TEKHNO-SEVER-NEFT': Creditors Must File Claims by June 10 --------------------------------------------------------- Creditors of LLC Tekhno-Sever-Neft' (TIN 1101029311, PSRN 1021100507306) (Drilling Works) have until June 10, 2009, to submit proofs of claims to: V. Timashkov Insolvency Manager Pechorskiy Prospect 110 169600 Pechora Russia Tel: 8(82142)33111. The Arbitration Court of Arkhangelskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05–7444/2008. The Debtor can be reached at: LLC Tekhno-Sever-Neft’ Olennaya St. 10 166000 Naryan-Mar Russia TETYUSHINSKIY FISH: Creditors Must File Claims by May 10 -------------------------------------------------------- Creditors of LLC Tetyushinskiy Fish-Processing Plant (TIN 1638003830) have until May 10, 2009, to submit proofs of claims to: R. Khabibi Temporary Insolvency Manager Post User Box 106 420061 Kazan Russia The Arbitration Court of Tatarstan will convene on June 4, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A65–14712/2008-SG4–16. The Debtor can be reached at: LLC Tetyushinskiy Fish-Processing Plant Tetyushi Russia VOLZHSKIY INVESTMENT: Creditors Must File Claims by May 10 ---------------------------------------------------------- Creditors of OJSC Volzhskiy Investment Casting Plant have until May 10, 2009, to submit proofs of claims to: Ye. Dunayev Temporary Insolvency Manager Apt. 118 Chavayna Blvd 10 Ioshkar-Ola 424038 Mari El Russia Tel: 8-8362-218689 The Arbitration Court of Mari El will convene on July 9, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A38–151/2009,. The Debtor can be reached at: OJSC Volzhskiy Investment Casting Plant Prombaza St. 1 Volzhsk 425000 Mari El Russia * Fitch Changes Outlooks on Five Russian Banks to Negative ---------------------------------------------------------- Fitch Ratings has changed the Outlooks on five Russian regional banks to Negative from Stable, reflecting asset quality deterioration and moderate loss absorption capacity. The Issuer Default Ratings of these five banks, together with six other Russian regional banks, were affirmed. The five banks whose Outlooks were changed to Negative from Stable are Chelindbank, Primsotsbank, SKB-Bank, Spurt Bank and Uraltransbank. Of the other six banks, Bank Rossiya, Petersburg Social Commercial Bank and Sarovbusinessbank carry a Stable Outlook, Bank Snezhinskiy, BTA-Kazan and International Bank of Saint Petersburg all have a Negative Outlook. The Negative Outlooks on CB, IBSP, PSB, SKB, Snezhinskiy, Spurt and UTB, and also the downgrades of the National ratings of CB and UTB, reflect ongoing asset quality deterioration in the currently challenging Russian operating environment and the generally moderate loss absorption capacity at these banks. Regulatory capital ratios at the seven banks, which ranged from 17% to 23% at March 1, 2009, provide some headroom for recognition of loan losses. However, Fitch notes the considerable tier 2 component of capital at some of the banks (CB, IBSP, SKB, Spurt and UTB), which reduces loss absorption capacity, and the already significant levels of non-performing and restructured loans, in particular at PSB, CB and Snezhinskiy. Concentrations in respect to the real estate/construction sectors and individual borrowers are very high at IBSP and substantial at Snezhinskiy, PSB, Spurt and SKB (in PSB's case, more in respect to the real estate/construction sectors; for Spurt and SKB more in relation to individual borrowers) but less of a concern at CB and UTB. The low proportions of foreign currency lending (no more than 12% of total loans) are a positive factor for each of the seven banks. Their liquidity positions are also currently reasonable, although dependent on the stability of generally short-term customer funding. The 'CCC' Long-term IDR and Negative Outlook on BTA-Kazan reflect its small size and franchise and high level of restructured loans. They also take into account potential contagion risk from ongoing developments at minority shareholder, Kazakhstan's BTA Bank (BTA, rated 'CC'/Rating Watch Negative), and the risk that the bank will become more exposed to the assets and fortunes of its other shareholders, which Fitch understands include the now minority owners of BTA. At the same time, Fitch notes BTA-Kazan's currently solid reported capital ratio. The Stable Outlooks on PSCB and SBB reflect their high loss absorption capacity, currently low reported non-performing loans (although restructured loans are significant at SBB), low foreign currency lending and comfortable liquidity. PSCB's asset quality should benefit, relative to peers, from its focus on granting primarily short-term working capital facilities. SBB's credit profile also benefits from the solid capital and liquidity positions at Nizhegorodpromstroibank, which it acquired in Q408 with the support of the Russian Deposit Insurance Agency. At the same time, both PSCB and SBB are, like peers, dependent on short- term customer funding and are also likely to experience asset quality deterioration in the current operating environment. An additional risk for SBB is the high level of construction/real estate lending both on its own balance sheet and on that of NPSB. The Stable Outlook on BR reflects the nature of its niche franchise, in particular its relatively good-quality borrowers, including subsidiaries and partners of large state-owned companies, which should make asset quality deterioration less marked than at most other Russian banks in the current environment. BR's ratings and Outlook also reflect its currently strong liquidity position. However, they are constrained by its modest capitalization, which has been undermined by significant equity investments made through BR's subsidiaries, its complex group structure and high balance sheet concentrations. The assessment of the banks referenced in this comment is the latest 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: Bank Rossiya -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BB-(BB minus)(rus) '; Outlook Stable Bank Snezhinskiy PJSC -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' International Bank of Saint Petersburg -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term Rating: affirmed at 'BB-(BB minus) (rus)'; Outlook Negative Chelindbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: downgraded to 'BB(rus)' from 'BB+(rus) '; Outlook changed to Negative from Stable JSC Bank BTA-Kazan (OJSC) -- Long-term IDR: affirmed at 'CCC'; Outlook Negative -- Short-term IDR: affirmed at 'C' -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '5' -- Support Rating Floor: assigned at 'No floor' -- National Long-term Rating: affirmed at 'B(rus) '; Outlook Negative JSC Spurt Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' Petersburg Social Commercial Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BB-(BB minus)(rus) '; Outlook Stable Primsotsbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BB(rus)'; Outlook changed to Negative from Stable Sarovbusinessbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term Rating: affirmed at 'BB-(BB minus)(rus)'; Outlook Stable SKB-Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' Uraltransbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook changed to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: downgraded to 'D/E' from 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: downgraded to 'BB(rus)' from 'BB+(rus) '; Outlook changed to Negative from Stable * Fitch Affirms Issuer Ratings on Various Russian Banks ------------------------------------------------------- Fitch Ratings has affirmed the Long-term Issuer Default Ratings of Sberbank, Bank VTB, VTB24, VTB North West and Russian Agricultural Bank at 'BBB'. The agency has simultaneously affirmed the Long- term IDRs of three European subsidiaries of VTB, Bank of Moscow, and Rosagroleasing at 'BBB-' (BBB minus). The Negative Outlooks on all the entities' Long-term IDRs have been maintained. Fitch has also downgraded Sberbank's Individual Rating to 'C/D' from 'C' and VTB's Individual rating to 'D' from 'C/D', and separately placed the 'C/D' Individual Ratings of VTB's three European banking subsidiaries on Rating Watch Negative. A full list of rating actions is provided at the end of this commentary. The affirmation of the Long-term IDRs of Sberbank, Bank VTB, RAB and RAL reflects the high probability of support available from the Russian government, in case of need. The Russian state owns 60.3% of Sberbank's ordinary shares and a 77.5% stake in VTB. RAB and RAL are fully-owned by the government and to a large degree perform policy roles. The affirmation of VTB's domestic and European subsidiaries' IDRs reflects the high probability that they would receive support from VTB and, ultimately, the Russian authorities, in case of need. The affirmation of BOM's Long-term IDR reflects Fitch's view that there is a high probability that the bank would be supported by the City, if necessary. The City owns 44% of BOM directly and controls a further 15% through the Capital Insurance Group. The downgrades of Sberbank and VTB's Individual Ratings reflects ongoing and potential future asset quality deterioration in the currently difficult Russian operating environment. The downgrades also take account of the banks' moderate loss absorption capacity and the fact that in case of substantial loan losses they may require recapitalisation from the state. An Individual Rating reflects a bank's standalone risk and does not take account of the potential for external support. The performance of Sberbank and VTB is likely to be susceptible to general macroeconomic trends given their positions as the largest lenders in the sector. Reported problem loans are currently low, although impairment may be obscured by ongoing restructuring, the still relatively unseasoned nature of the portfolios and recent rapid growth (in the case of VTB). Notwithstanding the recent subordinated debt injections of RUB500bn by the Central Bank of Russia into Sberbank and RUB200bn by Vnesheconombank into VTB, the banks' loss absorption capacity is moderate (although somewhat greater at Sberbank in light of its higher capital ratios and robust pre-impairment profit) and therefore additional recapitalisation may be required. Fitch understands that the state retains the willingness and resources to provide new capital to both banks should it be needed, which has been reflected in the affirmation of the banks' IDRs. Both banks' liquidity positions are currently comfortable, although VTB has a somewhat higher reliance on CBR funding, which may further increase considering the refinancing requirements relating to upcoming wholesale funding maturities. The placing of the Individual ratings of VTB Capital plc., VTB Bank (France) and VTB Bank (Austria) on RWN indicates these ratings may be downgraded following Fitch's upcoming full review of these banks. Fitch believes that given the focus of the three European banking subsidiaries of VTB on the CIS (mostly Russian) markets, they may be subject to many of the same risks as their parent in Russia. VTB24's Individual Rating of 'D' is under downward pressure due to worsening asset quality across all products, modest capitalization and relatively low loan impairment reserves offering very limited loss absorption capacity. However, the rating also takes account of the high share of mortgage exposure for which final losses are likely to be lower than for the rest of the loan book, reasonable pre-impairment earnings generation (which nonetheless may not be sufficient to cover potential impairment), and a good liquidity position supported by VTB and CBR funding. RAB's Individual Rating of 'D' is supported by its now much stronger capitalization, following RUB31.5bn and RUB45bn of equity contributions from the state in August 2008 and February 2009, respectively. Asset quality trends are likely to be negative as the portfolio starts to season in a challenging operating environment, although the small proportion of foreign currency lending is a mitigating factor. RAB's liquidity position is sound, in part due to liquidity provided by the CBR. BOM's Individual Rating of 'D' is under downward pressure in light of its currently limited loss absorption capacity and gradual asset quality deterioration. To improve capitalization, BOM is planning to receive RUB20bn of new equity from current shareholders, including the City, and about RUB11bn of subordinated debt from Vnesheconombank. However, the new capital is not likely to be available before summer 2009. Liquidity is comfortable, and supported by funding from the CBR and the City. The rating actions are: Bank of Moscow -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Senior unsecured debt: affirmed at 'BBB-' (BBB minus) -- Subordinated debt: affirmed at 'BB+' -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '2' -- National Long-term Rating: affirmed at 'AA+(rus) '; Outlook Stable Bank VTB (JSC) -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Negative -- Long-term local currency IDR: affirmed at 'BBB'; Outlook Negative -- Senior unsecured debt: affirmed at 'BBB'; Short-term rating affirmed at 'F3' -- Subordinated debt: affirmed at 'BBB-' (BBB minus) -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: downgraded to 'D' from 'C/D' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB' -- National Long-term Rating: affirmed at 'AAA(rus) '; Outlook Stable CJSC Bank VTB24 -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Negative -- Senior unsecured debt: affirmed at 'BBB'; Short-term rating affirmed at 'F3' -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '2' -- National Long-term Rating: affirmed at 'AAA(rus) '; Outlook Stable JSC Bank VTB North-West -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Negative -- Subordinated debt: affirmed at 'BBB-' (BBB minus) -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '2' JSC Rosagroleasing -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- National Long-term rating: affirmed at 'AA+(rus)'; Outlook Stable -- Support rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' (BBB minus) Russian Agricultural Bank -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Negative -- Senior unsecured debt: affirmed at 'BBB'; Short-term rating affirmed at 'F3' -- Subordinated debt: affirmed at 'BBB-' (BBB minus) -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB' -- National Long-term Rating: affirmed at 'AAA(rus) '; Outlook Stable Sberbank - Savings Bank of the Russian Federation -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Negative -- Senior unsecured debt: affirmed at 'BBB'; Short-term rating affirmed at 'F3' -- Subordinated debt: affirmed at 'BBB-' (BBB minus) -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: downgraded to 'C/D' from 'C' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB' VTB Bank (Austria) AG -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: 'C/D'; placed on Rating Watch Negative -- Support Rating: affirmed at '2' VTB Bank (France) SA. -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: 'C/D'; placed on Rating Watch Negative -- Support Rating: affirmed at '2' VTB Capital plc -- Long-term foreign currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'F3' -- Individual Rating: 'C/D'; placed on Rating Watch Negative -- Support Rating: affirmed at '2' -- Senior unsecured debt: affirmed at 'BBB-' (BBB minus) The assessment of the banks referenced in this comment completes a broader review of all Fitch-rated banks in Russia, with the main focus on asset quality, loss absorption capacity and contingency recapitalization plans. * RUSSIA: S&P Affirms 'BB+' Rating on Republic of Bashkortostan --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB+' long-term issuer credit rating on the Republic of Bashkortostan in the Russian Federation (foreign currency, BBB/Negative/A-3; local currency, BBB+/Negative/A-2; Russia national scale, 'ruAAA'). The outlook is stable. "The rating is constrained by the republic's low budget predictability and limited flexibility, due to federal controls," said Standard & Poor's credit analyst Boris Kopeykin. The concentrated nature of the economy; long-term expenditure pressures; and still-low wealth in an international context also constrain the rating. These constraints are mitigated by the republic's low debt, very strong liquidity position, and conservative financial management. The republic is a net creditor and S&P expects it to maintain this position in 2010-2011. As of April 1, 2009, the republic had accumulated budget reserves which accounted for more than 50% of its likely 2009 operating expenditures and exceeded direct debt by more than 10x. "The outlook is stable because S&P expects that Bashkortostan's conservative financial management will help the republic maintain relatively good financial indicators, despite weaker revenue collection and expenditure pressures," said Mr. Kopeykin. All other things being equal, a positive rating action could result from an improvement in the operating balance and capital revenue collection, when combined with: increased visibility in the republic's medium-term reserve- and asset-management strategy; and enhanced reliability of the medium-term investment plan, given the need to improve infrastructure, wealth levels, and economic diversity. More diversity in the allocation of financial assets could be positive for the republic's credit quality. In contrast, a negative rating action could result from a more aggressive financial policy, with rapid depletion of cash reserves and a significant deterioration in financial performance. Faster- than-expected debt accumulation (including short-term debt) could pressure the rating, but S&P considers this unlikely. ===================== S W I T Z E R L A N D ===================== ATHENEE PRODUCTIONS: Claims Filing Deadline is April 30 ------------------------------------------------------- Creditors of Athenee Productions JSC are requested to file their proofs of claim by April 30, 2009, to: JSC Caminada Treuhand Zug Baarerstrasse 112 6300 Zug Switzerland The Company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at the shareholders' meeting on Feb. 23, 2009. BREGESA JSC: Claims Filing Deadline is April 30 ------------------------------------------------ Creditors of BREGESA JSC are requested to file their proofs of claim by April 30, 2009, to: Joerin Hopf, Attorney and Notary Public Lautengartenstrasse 14 4010 Basel Switzerland The Company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at the shareholders' meeting on Jan. 12, 2009. EFEF CONSULTING: Claims Filing Deadline is April 30 --------------------------------------------------- Creditors of EFEF Consulting LLC are requested to file their proofs of claim by April 30, 2009, to: Franz Fleischlin Binzhofstrasse 89 8404 Winterthur Switzerland The Company is currently undergoing liquidation in Winterthur. The decision about liquidation was accepted at the shareholders' meeting on Oct. 23, 2008. FRANCO STANISCIA: Claims Filing Deadline is April 29 ---------------------------------------------------- Creditors of Franco Staniscia LLC are requested to file their proofs of claim by April 29, 2009, to: Franco Staniscia Steigstrasse 50 8610 Uster The Company is currently undergoing liquidation in Uster. The decision about liquidation was accepted at the shareholders' meeting on Nov. 16, 2007. M.B. RADIOLOGIE-DIENST: Claims Filing Deadline is April 29 ---------------------------------------------------------- Creditors of M.B. Radiologie-Dienst JSC are requested to file their proofs of claim by April 29, 2009, to: Michael Brachlow Loch 817 9427 Wolfhalden Switzerland The Company is currently undergoing liquidation in Wolfhalden. The decision about liquidation was accepted at the shareholders' meeting on March 9, 2009. TCI JSC: Claims Filing Deadline is April 29 ------------------------------------------- Creditors of TCI JSC are requested to file their proofs of claim by April 29, 2009, to: M. Litscher, Liquidator Churerstrasse 35 BKZ 9470 Buchs Switzerland The Company is currently undergoing liquidation in Buchs. The decision about liquidation was accepted at the shareholders' meeting on Feb. 24, 2009. TRIARTE JSC: Claims Filing Deadline is April 30 ----------------------------------------------- Creditors of Triarte JSC are requested to file their proofs of claim by April 30, 2009, to: Lorenz Lengwiler, Liquidator Burgermatt 1 6343 Holzhäusern The Company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at the general meeting held on Feb. 13, 2009. VERS INVEST: Claims Filing Deadline is April 27 ----------------------------------------------- Creditors of Vers Invest JSC are requested to file their proofs of claim by April 27, 2009, to: JSC Moore Stephens Zug Alpenstrasse 15 6304 Zug Switzerland The Company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at the general meeting held on March 6, 2009. =========== T U R K E Y =========== AKBANK TAS: Fitch Affirms Long-Term Issuer Default Rating at 'BB' ----------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Akbank T.A.S. at Long- term Foreign Currency Issuer Default 'BB', Long-term Local Currency IDR 'BBB-' (BBB minus), Short-term Foreign Currency IDR 'B' and Short-term Local Currency IDR 'F3'. Fitch has also affirmed the bank's National Long-term Rating at 'AAA(tur)'; Individual Rating at 'C', Support Rating at '4' and Support Rating Floor at 'B+'. The Outlooks for the LT IDRs and the National Rating are Stable. Akbank's IDRs are driven by its intrinsic financial strength. In Foreign Currency the IDRs are constrained by Turkey's 'BB' Country Ceiling, while in Local Currency the IDRs are two notches above those of the Sovereign. By assigning ratings above the Sovereign, Fitch recognizes Akbank's strong franchise, in particular the stability of its domestic retail deposit base, the quality of its management, as well as its overall financial strength. These positive factors more than offset the bank's still sizeable direct exposure to the Turkish Sovereign. While the upside potential for the Individual Rating is limited, the Stable Outlook on the IDRs reflects the agency's view that the bank is well positioned in the current difficult global economic environment. Management's ability to ride out the volatilities of Turkey's economic cycles and to deliver sound results reflects a forward- looking, risk-averse approach to banking. Large investments in risk control systems are helping keep impaired loans low (2.3% of total loans at end-2008) while increased automation is keeping a control on costs (45% cost/income ratio). Akbank has taken pre-emptive measures in anticipation of difficult times. Exposures to higher-risk sectors (SMEs, micro businesses, auto loans) were reduced, while credit risk systems, already sound, were improved through enhanced data collection and the engagement of external consultants and risk limits were also reduced. Liquidity management remained a priority throughout 2008 and refinancing risk is minimal; the bank is retail-funded and capital adequacy ratios are amongst the best in Turkey. The bank is scaling back expansion in 2009, with loan growth expected to be low and new branch openings kept to a minimum. Margins are improving, as falling interest rates reduce funding costs but, given anticipated sharp rises in impairment charges for the year, Fitch believes profitability may be negatively impacted in the short-term. Problems are likely to arise in the credit card portfolio (10% of total loans), unsecured consumer loans (8%) and SME books (12%). However, Akbank is prudent in its provisioning policies, with impaired loans always reserved at well above 100%. A solid retail deposit base helps to counteract potential liquidity strains but, like all Turkish banks, Akbank faces considerable asset and liability management pressures with short- term funding financing longer-term assets. Akbank is not dependent on wholesale funding and the loan/deposits ratio further declined to 79% at end-2008 (2007: 86%); not all of the US$2.5 billion equivalent of syndicated loans maturing in 2009 are likely to be rolled over but the bank has built up sufficient immediate liquid FX reserves to meet its repayments should the need arise. Given Akbank's importance to the local system, Fitch considers that state support would be provided if needed. However, the authorities' ability to provide such support may be limited due to Turkey's 'BB-' Long-term Foreign Currency IDR. Akbank is the third largest private bank by total assets in Turkey, controlling domestic loan and deposit shares respectively at 12.6% and 11.7% at end-Q408. It is 51.38%-owned by the Sabanci Group; Citigroup has a 20% share and is represented by one board member in a non-executive position. GARANTI FAKTORING: Fitch Affirms 'BB' LT Issuer Default Rating -------------------------------------------------------------- Fitch Ratings has affirmed Garanti Faktoring Hizmetleri A.S.'s and Garanti Finansal Kiralama A.S.'s ratings: -- Long-term foreign currency Issuer Default Rating: affirmed at 'BB'; Outlook Stable -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'BBB-' (BBB minus); Outlook Stable -- Short-term local currency IDR: affirmed at 'F3' -- National Long-term Rating: affirmed at 'AAA(tur)'; Outlook Stable -- Support Rating: affirmed at '3' Garanti Leasing and Garanti Factoring operate as an integral part of their parent bank, Turkiye Garanti Bankasi A.S. (Garanti Bank, 'BB'/Stable). Their ratings reflect the probability of support from and close integration with their parent bank. These subsidiaries operate as an integral part of their parent bank and complete the range of products provided by Garanti Bank. They use Garanti Bank's brand name, logo and large branch network to generate business. They benefit from other group resources such as centralised IT and operations, human resources and training. Garanti Leasing, 99.6%-owned and controlled by Garanti Bank group, is Turkey's largest leasing company with a 15% market share. Its debt/equity stood at 7x at end-2008, which is close to a covenanted level of 8x. The company is funded through bilateral and syndicated bank lines from a range of domestic and foreign commercial banks and from supranational institutions. Fitch considers that the company is broadly self-financing with related- party funding equalling 20% of total. Garanti Bank controls 81.84% of the shares in Garanti Factoring. In managing its liquidity, the company relies on its short-term cash inflows and its debt rollover capabilities. Related-party funding at Garanti Factoring was 15.9% of the total borrowings at end-2008. Fitch views that Garanti Bank would have a high propensity to provide funding and liquidity support for Garanti Leasing and Garanti Factoring, should this be needed, although this is constrained by its ability to do so, as reflected in its 'BB' Long-term IDR. Garanti Bank, Turkey's second largest privately owned commercial bank and largest lender, controlling some 11% of domestic deposits, provides a full range of financial services through around 730 domestic branches. It has an international presence in seven countries. Garanti is 30.52%-owned by the Dogus Group and 20.85% by GE Capital, collectively 51% by the joint venture of Dogus Group and GECF, with the remainder publicly traded. TURKIYE GARANTI: Fitch Affirms LT Issuer Default Rating at 'BB' --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Turkiye Garanti Bankasi A.S. at Long-term Foreign Currency Issuer Default 'BB', Long-term Local Currency IDR 'BBB-' (BBB minus), Short-term Foreign Currency IDR 'B' and Short-term Local Currency IDR 'F3'. At the same time, Fitch has affirmed Garanti's National LT ratings at 'AAA(tur)' and its Individual Rating at 'C', Support Rating at '4' and Support Rating Floor at 'B+'. The Outlooks for the LT IDRs and the National Rating are Stable. Garanti's IDRs are driven by its intrinsic financial strength. In Foreign Currency the IDRs are constrained by Turkey's 'BB' Country Ceiling, while in Local Currency the IDRs are two notches above those of the Sovereign. By assigning ratings above the Sovereign, Fitch recognises Garanti's strong franchise, in particular the stability of its domestic retail deposit base, the quality of its management, as well as its overall financial strength. These positive factors more than offset the bank's still sizeable direct exposure to the Turkish Sovereign. While the upside potential for the Individual Rating is limited, the Stable Outlook on the IDRs reflects the agency's view that the bank is well positioned in the current difficult global economic environment. An expansion-driven strategy focusing on high-margin retail and SME segments, during Turkey's recent economic growth, was accompanied by steady investment in risk controls, automation and disposal of non-core assets. Garanti's franchise has been strengthened and operational support from GE Capital, its strategic shareholder, has proved beneficial. Operating profitability is high, cost efficiency is sound and capital ratios were strengthened through capital injections (TRY666 million in 2008), earnings retention and subordinated debt issuance. Net income declined in 2008 but 2007 results were boosted by one- off TRY851.6 million gains. Core operating profits were up, despite a sharp rise in impairment charges, reflecting portfolio seasoning in a worsening economic climate. Fitch expects impaired loans (2.5% at end-2008) to rise steeply in 2009 as Turkey's export-oriented economy is affected by weak global demand and rising unemployment. The loan book is diversified with middle market 'commercial' loans accounting for a 40% share, corporate 20%, SME 11%, consumer 15% and credit cards 14% and customer concentrations are not significant. Garanti has moderately scaled back expansion plans for 2009, adopting a particularly cautious approach to more risky segments (credit cards and auto loans), while continuing to open branches and to attract additional retail funding. The bank is not reliant on wholesale funding and the loan/deposits ratio further declined to 87% in mid-March 2009 (2008: 96%). Bank placements and government securities are being shored up, foreign currency asset and liability positions are being matched. Efforts to tap longer- term funding from specialized agencies are meeting with some success. The total capital ratio reached over 14.5% at end-March 2009, up from 13.51% at end-2008. Support may be forthcoming from Garanti's strategic shareholders, GE Capital and Dogus Group, if needed. However, given the bank's domestic importance, the Turkish government is, in Fitch's view, the most reliable source of support. The sovereign's ability to provide such support may be limited, given Turkey's Long-term Foreign Currency IDR of 'BB-' (BB minus). Garanti, with a domestic deposit market share of 11.8%, provides a full range of financial services through around 730 domestic branches. Garanti was the second-largest private bank in Turkey by total assets and the largest lender at end-2008. It has a presence in seven countries. Garanti is 30.52%-owned by the Dogus Group and 20.85% by GE Capital, with the remainder publicly traded. ============= U K R A I N E ============= ALANSON LLC: Creditors Must File Claims by May 2 ------------------------------------------------ Creditors of LLC Alanson (EDRPOU 35512459) have until May 2, 2009, to submit proofs of claim to M. Tsurika, Insolvency Manager. The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on March 18, 2009. The case is docketed under Case No. 5/87/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya Street 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Alanson Shevchenko St. 42 Nikolayev Ukraine ANDIN LLC: Creditors Must File Claims by May 2 ---------------------------------------------- Creditors of LLC Andin (EDRPOU 35320597) have until May 2, 2009, to submit proofs of claim to: T. Rudenko Insolvency Manager Office 104 Lazurnaya St. 50 Nikolayev Ukraine The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on March 19, 2009. The case is docketed under Case No. 5/85/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya Street 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Andin Office 23 Nikolaskaya St. 44 Nikolayev Ukraine DONETSK HARDWARE: Creditors Must File Claims by May 2 ----------------------------------------------------- Creditors of OJSC Donetsk Hardware Plant (EDRPOU 31582700) have until May 2, 2009, to submit proofs of claim to: O. Zabrodin Insolvency Manager Post Office Box 6335 69121 Zaporozhye Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company on March 3, 2004. The case is docketed under Case No. 42/37B. The Court is located at: The Economic Court of Donetsk Artem St. 157 Donetsk Ukraine The Debtor can be reached at: OJSC Donetsk Hardware Plant Gurov St. 2 Donetsk Ukraine HYPPO-L LLC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Economic Court of Kharkov commenced bankruptcy supervision procedure on LLC Hyppo-L (EDRPOU 33252410). The Insolvency Manager is O. Doloshko. The Court is located at: The Economic Court of Kharkov Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Hyppo-L Office 75 Traktorostroiteley Avenue 140-B Kharkov Ukraine LIANT LTD: Creditors Must File Claims by May 2 ---------------------------------------------- Creditors of LLC Liant Ltd. (EDRPOU 23062848) have until May 2, 2009, to submit proofs of claim to: L. Demets Insolvency Manager 40 years of Victory St. 27A/57 Vinnitsa Ukraine The Economic Court of Vinnitsa commenced bankruptcy proceedings against the company on Oct. 28, 2008. The case is docketed under Case No. 10/16-08. The Court is located at: The Economic Court of Vinnitsa Hmelnitsky Highway 7 21100 Vinnitsa Ukraine The Debtor can be reached at: LLC Liant Ltd. Lenin St. 41 Letin Vinnitsa Ukraine MMK DNIPRO: Creditors Must File Claims by May 2 ----------------------------------------------- Creditors of LLC MMK DNIPRO (EDRPOU 32952543) have until May 2, 2009, to submit proofs of claim to: R. Talan Insolvency Manager Post Office Box 158 49000 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on 3/26/2009. The case is docketed under Case No. B24/77-09. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC MMK Dnipro K. Marks St. 17-V 49005 Dnepropetrovsk Ukraine REGION TRADE: Creditors Must File Claims by May 2 ------------------------------------------------- Creditors of LLC Trade Service (EDRPOU 22667118) have until May 2, 2009, to submit proofs of claim to V. Filatova, Insolvency Manager. The Economic Court of Kharkov commenced bankruptcy proceedings against the company on March 23, 2009. The case is docketed under Case No. B-24/37-09. The Court is located at: The Economic Court of Kharkov Svoboda square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Trade Service Office 35 Traktorostroiteley St. 148 61121 Kharkov Ukraine RIKONT LLC: Creditors Must File Claims by May 2 ----------------------------------------------- Creditors of LLC Rikont (EDRPOU 32903585) have until May 2, 2009, to submit proofs of claim to: State Tax Inspection in Kiev-Sviatoshynsky District of Kiev Insolvency Manager Lomonosov St. 34 Vishnevoye 08132 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on Oct. 7, 2008. The case is docketed under Case No. B3/249-08. The Court is located at: The Economic Court of Kiev Komintern St. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Rikont Kiev St. 19 Vishnevoye 08132 Kiev Ukraine RUSANOVKA MEAT-PACKING: Court Starts Bankruptcy Procedure --------------------------------------------------------- The Economic Court of Kiev commenced bankruptcy supervision procedure on Enterprise with Foreign Investments LLC Rusanovka Meat-Packing Plant (EDRPOU 31997363). The Insolvency Manager is: A. Zhmaylo Office 130 Voloska St. 50/38 04070 Kiev Ukraine The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030 Kiev Ukraine The Debtor can be reached at: Enterprise with Foreign Investments LLC Rusanovka Meat-Packing Plant S. Sagaydak St. 114 02002 Kiev Ukraine UROZHAYNAYA NIVA LLC: Creditors Must File Claims by May 2 --------------------------------------------------------- Creditors of LLC Urozhaynaya Niva (EDRPOU 31289323) have until May 2, 2009, to submit proofs of claim to: R. Mikailova Insolvency Manager Office 9 Artem St. 11 Yubileynoye 91493 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company on 11/04/2009. The case is docketed under Case No. 21/20b. The Court is located at: The Economic Court of Lugansk Heroes of GPW square 3-a 91000 Lugansk Ukraine The Debtor can be reached at: LLC Urozhaynaya Niva Shkolnaya St. 1 Beloskelevatoye Lugansk Ukraine VANT-SOUTH LLC: Creditors Must File Claims by May 2 --------------------------------------------------- Creditors of LLC Vant-South (EDRPOU 34772699) have until May 2, 2009, to submit proofs of claim to M. Tsurika, Insolvency Manager. The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on March 25, 2009. The case is docketed under Case No. 6/131/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya street 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Vant-South Dekabristov St. 41 Nikolayev Ukraine =========================== U N I T E D K I N G D O M =========================== CASTLE GRANITE: Placed In Administration; Begbies Appointed ----------------------------------------------------------- Castle Granite, of Ludgvan near Penzance, has been placed in Administration. Ian Walker and Gilbert Lemon of business recovery and insolvency specialists Begbies Traynor, have been appointed as Administrators. The privately-owned business has extracted high quality granite from Castle-an-Dinas Quarry for use in building and construction since 1994, and has a strong local market for its natural stone products and aggregates. Since 2006, the site has also included a Macadam plant, which has enabled the company to supply material for road construction throughout Cornwall. The significant contraction of both domestic building and civil engineering industries, as a result of the general economic recession, has lead to cash-flow problems, but the underlying business is strong and is continuing to trade while a buyer is sought for the business as a going concern. Begbies Traynor's Administrator Gilbert Lemon said "We are very confident that we will be able to find a buyer, and hopefully secure all 12 jobs. We have already received expressions of serious interest from a number of separate parties." BRITISH ENERGY: Centrica In Talks with EDF Over 25% Stake --------------------------------------------------------- Centrica plc on Thursday confirmed that it remains in discussions with Electricite de France S.A ("EDF") on the possibility of Centrica taking an equity stake in British Energy and that these discussions extend to the possible sale to EDF of Centrica's 51% interest in SPE. The companies expect the discussions to conclude in the next few weeks. Centrica said there can be no certainty that any agreement will be reached. According to the Scotsman, Centrica is seeking to buy a quarter of British Energy, bought by EDF last year, to reduce its exposure to the wholesale energy markets. Telegraph.co.uk recalls last year, Centrica signed a memorandum of understanding with EDF to buy 25pc of the UK nuclear operator for GBP3.1 billon. However, the Scotsman notes the negotiations, scheduled to be completed by the end of March, are dragging on, with reports Centrica chief executive Sam Laidlaw is under shareholder pressure not to overpay for the stake. The Scotsman discloses the major stumbling block is believed to be the price. Centrica, the Scotsman says, believes that the market has "moved on" since the agreement was signed last November. The Scotsman relates traders said settlement of the British Energy negotiations –- one way or another -– could allow progress in Centrica's plans to by Venture Production. About British Energy Headquartered in Livingston, Scotland, British Energy Limited -- http://www.british-energy.com/-- is the UK's largest electricity generator, employing over 6,000 people. The British Energy Group owns and operates eight nuclear power stations in the UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations, located at Dungeness, Hartlepool, Heysham (two stations), Hinkley Point, Hunterston, Torness and the only civil Pressurised Water Reactor (PWR) station in the UK, located at Sizewell in Suffolk. British Energy also owns and operates the Eggborough coal-fired power station in Yorkshire. British Energy's total current capacity is 10.6GW (of which 8.7GW from nuclear generation) with delivered output of 58.4TWh (of which 50.3TWh comprises nuclear output) for the year ended March 2008. British Energy is the lowest carbon emitter of the UK's major electricity generators. * * * As reported in the Troubled Company Reporter-Europe on Sept. 26, 2008, Fitch Ratings placed British Energy Group plc's and British Energy Bond Finance plc's (BEBF, formerly British Energy Holdings plc) 'BB+' Long-term Issuer Default Ratings on Rating Watch Positive. BEBF's amortizing bonds -- rated 'BB' -- were also put on RWP. The rating actions follow the announcement of a proposed takeover by France's EDF SA ('AA-'/ 'F1+'/Rating Watch Negative). DAWSON NEWS: To Lose Two Major Contracts Worth GBP125 Million ------------------------------------------------------------- Amanda Andrews at Telegraph.co.uk reports that Dawson News is expecting to lose two more major contracts worth GBP125 million within the next two weeks. According to report, the company, whose main rivals are Smith News and John Menzies, is preparing to lose the Trinity Mirror contract, worth GBP50 million in revenue terms, and Marketforce, worth GBP75 million in revenues. The report says the contract with Trinity Mirror expires in September, while the Marketforce contract ends on December 31. Its contract with Telegraph Media Group, due up in the autumn, will also not be renewed, the report adds. The company, the report recalls, has lost lucrative contracts with Associated Newspapers and Comag as well as major magazine contracts with Frontline and Seymour Distribution. The report discloses the company's legal team is understood to be investigating whether the client losses are the result of predatory pricing and a collective boycott. The company, the report notes, is attributing its worsening situation to an OFT decision last year against referring the newspaper and magazine distribution market to the Competition Commission, on concerns that the three main players had come to dominate the market. The company, the report states, is considering whether to challenge the OFT decision. "The end result has been the exclusion of Dawson News and a number of smaller wholesalers from the market, effectively creating a wholesaler network of just two regional monopolies," the report quoted Peter Harris, the chief executive of parent company Dawson Holdings, as saying. Dawson Holdings Plc -- http://www.dawson.co.uk/-- is a United Kingdom-based company. The Company is engaged in the distribution of newspapers, magazines, books and the provision of marketing support services. The Company operates in four business segment: Dawson News, Dawson Media Direct, Dawson Books and Dawson Marketing Services. Dawson News provides wholesale and specialist news distribution services. Dawson Media Direct (DMD) provides in-flight management services, including specialist distribution to the airline industry, as well as niche delivery. Dawson Books provides shelf-ready books, and a variety of added value services, to professional, academic, corporate and public library markets worldwide. Dawson Marketing Services (DMS) provides marketing support and logistics services through the effective integration of stock management, Web reporting and distribution arrangements. GLOBE PUB: Heineken Buys 30 Percent of Senior Debt at a Discount ---------------------------------------------------------------- Pan Kwan Yuk at the Financial Times reports that Heineken, the Dutch brewing group, has bought up 30 per cent of the senior debt in Robert Tchenguiz's Globe Pub Company. Heineken, the FT says, acquired GBP60.2 million of Globe's Class A1 securitized debt at an undisclosed discount. According to the FT, the Dutch company now has a blocking stake in the senior bonds, giving it a say over Globe's future should the company consider restructuring its debt. The FT relates Heineken said its decision to buy a third of the debt in Globe was "a purely financial decision" and "nothing more". "It's an opportunistic purchase," the FT quoted the Dutch company as saying. The FT recalls Globe has faced an uncertain future since the company breached its banking covenants and then defaulted on a GBP257 million loan. As a result, if holders of 25pc of the bonds agree, they can seek the appointment of an administrative receiver to run the business, the FT notes. The Troubled Company Reporter-Europe, citing Edinburgh Evening News, reported on April 9, 2009, Globe could go into administration after it defaulted on a GBP257 millon-asset backed loan. The company, the report stated, failed to remedy a breach of its covenant last month. The covenant breach was triggered after ebitda fell below 1.25 times the cost of servicing its debt –- the minimum it is allowed, the report recounted. According to the report, if an administrator is appointed, Mr. Tchenguiz could see his whole investment in the company wiped out. Globe Pub Company -- http://www.globepubcompany.co.uk/-- was established in 2004 by R20, an investment company of Robert Tchenguiz. The company currently runs over 450 quality leased pubs across the United Kingdom. Its estate is managed by S&N Pub Enterprises. HUGO'S LTD: Appoints Joint Administrators from BDO Stoy Hayward --------------------------------------------------------------- Andrew Howard Beckingham and William Matthew Humphries Tait of BDO Stoy Hayward LLP were appointed joint administrators of Hugo's Ltd. on April 2, 2009. The company can be reached through BDO Stoy Hayward LLP at: Arcadia House Maritime Walk Ocean Village Southampton Hampshire SO14 3TL England JTF HOLDINGS: Taps Joint Administrators from Ernst & Young ---------------------------------------------------------- Simon Allport and Thomas Andrew Jack of Ernst & Young LLP were appointed joint administrators of JTF (Cash & Carry) Holdings Ltd. on April 1, 2009. The company can be reached through Ernst & Young LLP at: 100 Barbirolli Square Manchester M2 3EY England JTF LTD: Brings in Joint Administrators from Ernst & Young ---------------------------------------------------------- Simon Allport and Thomas Andrew Jack of Ernst & Young LLP were appointed joint administrators of JTF (Cash & Carry) Ltd. on April 1, 2009. The company can be reached through Ernst & Young LLP at: 100 Barbirolli Square Manchester M2 3EY England MADOFF SECURITIES: Liquidators Seize Vintage Aston Martin --------------------------------------------------------- The Joint Provisional Liquidators of Madoff Securities International Limited (MSIL), the UK company that had been owned and operated by convicted fraudster Bernard Madoff, have obtained recognition in U.S. Bankruptcy Court and have obtained an order restraining a vintage DB 2/4 Aston Martin automobile registered to Peter Madoff, Bernard Madoff's brother and director of compliance at his rogue trading firm, The automobile was purchased by Bernard Madoff for his brother Peter Madoff for over US$235,000 using funds taken from MSIL. The Joint Provisional Liquidators are Mark Byers, Andrew Hosking and Steve Akers, all partners in Grant Thornton UK LLP. The Joint Provisional Liquidators sought recognition of their right to act for MSIL under Chapter 15 of the Bankruptcy Code, which allows foreign liquidators to obtain assistance in the U.S. Courts in investigating, locating and seizing assets that belong to non-U.S company. The MSIL Liquidators were appointed by the English High Court in December 2008 and have been working closely with the U.S. Trustee for Bernard Madoff International Securities (BMIS), the company described by its founder, Bernard Madoff, as a "giant Ponzi scheme," which he estimated to have lost US$65 billion of investor funds. MSIL was a trading operation in London that principally traded for the benefit of the Madoff family. MSIL funds were used to make numerous large purchases for the Madoffs, including yachts, houses and automobiles. "We are grateful for the recognition and assistance of the U.S. courts," said Steve Akers, a Joint Provisional Liquidator of MSIL and partner of Grant Thornton UK LLP in London. "We hope to be able not only to obtain assets for the benefit of creditors, but also to use the discovery processes that US courts provide to assist foreign liquidators to learn as much as we can about the assets of Madoff International for the benefit of victims of this enormous fraud." "As an insolvency practitioner, I have sought assistance from U.S. courts and U.S. authorities on a number of previous occasions. U.S. courts and U.S. authorities have in the past provided enormous help to me in identifying and collecting assets for the benefit of creditors worldwide, and we hope to do the same here." Mr. Akers was previously a liquidator of Bank of Credit and Commerce International, one of the largest frauds and insolvencies in history and has been liquidator of a number of investment and hedge funds and other financial institutions. John Verrill, of Dundas & Wilson in London who is coordinating international legal strategy for the Joint Provisional Liquidators, stated, "We have been working in Europe and many offshore jurisdictions under established mechanisms for obtaining assets and assistance. The assistance of the United States will also be of crucial importance in identifying and recapturing assets wherever they can be found." London-based Madoff Securities International Limited is a money management business of Bernard L. Madoff in the United Kingdom. Mark Richard Byers, Andrew Laurence Hosking, and Stephen John Akers at Grant Thornton UK LLP filed a Chapter 15 petition against the Company on April 14, 2009 (Bankr. S.D. Fla. Case No. 09- 16751). The Company has US$100 million to US$500 million in assets and more than US$1 billion in debts. MONEY PARTNERS: S&P Cuts Rating on Class B1 Notes to 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit rating on the class B1 notes issued by Money Partners Securities 2 PLC. At the same time, S&P placed the class M2a and M2b notes on CreditWatch negative and affirmed all the remaining notes. S&P initially placed the class B1 notes on CreditWatch negative on Jan. 19. The rating actions follow S&P's full credit and cash flow review of the most recent transaction information that S&P has received. This analysis showed that the class B1 notes could no longer withstand S&P's 'BBB' rating stress and the likelihood of downgrade has increased for the class M2a and M2b notes as U.K. house prices continue to fall. Collection rates decreased to 64.7% in February 2009 from 80.2% in November 2008, following a similar trend to the other Money Partners transactions. On the February 2009 interest payment date, total delinquencies were 42.1% and repossessions were 4.5%. As U.K. house prices have continued to fall, losses have increased significantly. Since August 2008, cumulative losses have increased to 2.4% from 1.9%. The loss severity since issuance is 29.0%, with a loss severity of 74.1% for the second-lien loans. The class B2 notes have fully redeemed. These notes were collateral-backed but could also be redeemed through excess spread. This resulted in over collateralization, which has so far covered losses in the transaction. Unlike the other Money Partners transactions, this over collateralization has meant there have been no reserve fund draws to date. However, S&P expects to see reserve fund draws in coming quarters as further losses are realized and the over collateralization is reduced. Ratings List Money Partners Securities 2 PLC EUR191.2 Million, GBP234.7 Million, and US$78.0 Million Mortgage-Backed Floating-Rate Notes Rating Lowered and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- B1 BB+ BBB/Watch Neg Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- M2a A/Watch Neg A M2b A/Watch Neg A Ratings Affirmed Class Rating ----- ------ A2a AAA A2a DAC-11 AAA A2c AAA A2c DAC-11 AAA M1a AA M1b AA MERCs AAA OILEXCO INC: Premier Shareholders Back Acquisition of North Sea --------------------------------------------------------------- Hamish Rutherford at the Scotsman reports that the shareholders of London-based Premier oil approved the company's acquisition of the local assets of Canada-based Oilexco Inc. According to the report, Premier is paying GBP347 million to buy the North Sea assets, which were placed into administration earlier this year. Premier shareholders approved the plan, along with a rights issue to part fund the deal, with all of the resolutions at the extraordinary general meeting gaining more than 99 per cent approval, the report notes. The report recalls last week creditors of the Oilexco subsidiary approved a company voluntary arrangement which cleared the way for the Premier deal. In a report on April 16, the Scotsman disclosed Oilexco North Sea, which has about 100 staff in Aberdeen and offshore, slid into administration in January after its banks refused further lending to ease its finance woes. Roy Bailey, Alan Bloom, Tom Burton and Colin Dempster of Ernst & Young (E&Y) were appointed joint administrators, the report stated. About Oilexco Inc. Headquartered in Calgary, Canada, Oilexco Inc. (TSX: OIL; LSE: OIL) -- http://www.oilexco.com/-- is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea Ltd., a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL". RD GROUP: Appoints Joint Administrators from KPMG ------------------------------------------------- Paul Andrew Flint and Mark Granville Firmin of KPMG LLP were appointed joint administrators of RD Group Ltd. on April 3, 2009. The company can be reached through KPMG LLP at: 1 The Embankment Neville Street Leeds LS1 4DW England ROYAL BANK: Bankinter Buys Share in Spanish Insurance JV -------------------------------------------------------- Martin Flanagan at the Scotsman reports that Spanish bank Bankinter is buying half of the Spanish unit of Direct Line insurance that Royal Bank of Scotland Group Plc does not already own. According to the report, RBS confirmed Friday last week that Bankinter is paying GBP377 million in cash for the Spanish insurance joint venture. The report relates an RBS spokesman said a clause from the 1994 deal establishing Linea Directa Aseguradora allowed either bank the right to buy the other's share should a third party take control of either of them. The report says that clause was triggered last November when the UK government took a 58 per cent majority stake in RBS after investors shunned a rescue rights issue. Citing the RBS spokesman, the report discloses, under the joint venture agreement, the purchase will complete within 14 days of Bankinter's notification. The report states independent auditor PricewaterhouseCoopers set the price for the Spanish vehicle insurance specialist, which has 1.6 million policyholders. However, the report notes an RBS source said Friday that there were no plans to sell the bank's wholly-owned Direct Line subsidiaries in Italy and Germany. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. * PwC Says Emerging Markets Still Attractive for UK Investment -------------------------------------------------------------- UK companies should continue to keep an eye on the attractiveness of emerging markets and do their homework now so they are ready to make investments in those countries once the global economic situation improves, according to PricewaterhouseCoopers emerging markets group. Although many emerging market countries are experiencing sharp slowdowns in economic activity due to the global financial crisis, not all of them have been equally affected by the negative outlook, prompting a need for a reappraisal of the relative risks of investing in those markets, the group’s latest investment index shows. The annual PwC EM 20 Index ranks the top 20 emerging market countries by investment attractiveness in both manufacturing and services industries. It has been updated by PwC to analyze what impact the recent unprecedented turmoil in the world economy has had on long term investment prospects. Countries ranked higher in the Index tend to be those whose risk premia remain relatively low in an environment of significant upward revisions of risk. This time round the risk/reward economic model used to calculate the Index has been revised to take into account other elements of risk beyond the sovereign debt data primarily used in the past. The Index now places greater weight on the fundamentals behind country risk such as political stability, regulatory effectiveness and the rule of law. Alec Jones, head of emerging markets, PricewaterhouseCoopers LLP, said: "The rankings indicate that many tried and tested destinations still represent potentially attractive long term investment opportunities for British business. The less well placed countries in the rankings tend to be those without significant domestic markets or those not anchored within large trade or currency blocks. So even during these times of global financial crisis, there are still emerging markets that will appeal to UK companies for long term foreign investment. The selection process needs to be robust and reflect new realities but those companies that lay the groundwork now, will be best placed to act once the economic climate improves." Key findings from the EM 20 Index include: * Chile, Malaysia and Poland have made the most significant advances in the manufacturing index * The rise of Chile and Poland is largely a reflection of the fact that they have comparatively high GDP per capita levels and relatively attractive risk profiles that outweigh the tendency towards higher labor costs that can lead to falling manufacturing competitiveness * China was the only BRIC (Brazil, Russia, India and China) country to improve its ranking in the manufacturing index, moving up to 4th from 14th; as was the case for Chile, Malaysia and Poland, this improvement was mainly driven by the fact that its country risk premium has risen by less than that of most other emerging markets. * Slovakia, China and India are the biggest movers in the services index * Slovakia's rise to top the rankings is largely due to its relative political stability and its projected GDP per capital growth. The latter is an important determinant of attractiveness for businesses operating in the domestically- oriented services sector which is the focus of the services index. * Fitch Says European Incumbent Telecom Operators are at Risk ------------------------------------------------------------- Fitch Ratings said that a number of European incumbent telecom operators risk increasing disadvantage given a failure to respond sufficiently to the risk posed by the cable operators' broadband investments and their own resistance to spending on fibre. In Fitch's view the cable operators in a number of countries enjoy significant scale in terms of their coverage footprints and well established broadband and telephony strategies. What is now very clear however is that DOCSIS 3.0, cable's broadband upgrade path to speeds (capable of) exceeding 100 megabits can and have been achieved in a number of networks at relatively modest cost. Meanwhile the incumbent telecoms continue to wrestle with issues of whether to invest in fibre to the curb, fibre to the home, or a hybrid of the two, and where and when to invest. Regulatory concerns over the permitted return and regulated access to the incumbents' fibre networks remains an issue in a number of markets and in Fitch's view continues to inhibit investment by the incumbents. "The UK, Belgium, Portugal and the Netherlands are the markets where incumbents face the most significant threat from cable operators, given the degree to which the cable network has been built out in these countries, the success of the cable companies broadband strategies so far, and the level of DOCSIS 3.0 deployment," said Stuart Reid, Senior Director in Fitch's EMEA TMT team. Conversely incumbents in France and Spain face a reduced threat reflecting lower levels of network build and the weaker financial profile of the cable operators in those countries. The structure of the German cable industry has meant that the take-up of cable broadband is only now beginning to gain meaningful scale there, while Italy stands apart among the major European economies as the only country without a developed cable operator and where the incumbent therefore remains that much more protected." Fitch points to the fact that in the US, Verizon Communications embarked on a costly FTTH build out in a heavily cable networked US demographic three years ago and yet most of Europe's incumbents are still trying to understand regulatory implications and only a few have taken meaningful fibre closer to the home. Fitch recognises that in current economic conditions, competitive risks might be expected to ease as consumers seek to contain communications costs. The cable operators in a number of countries have however already upgraded their networks and are offering 50 Mb speeds, while most of the incumbents remain tied to headline speeds for the most part in single-digits. With a far less developed TV product, Fitch also argues that it is the incumbents that are more in need of speeds that fibre can deliver given its ability to provide content streaming and video downloads. The ability to time-shift content and offer video on demand, is already proven over the cable network. Viewing trends, will however in Fitch's view, continue to fragment with the success of products like the BBC's iPlayer, as well as the commercial broadcasters' catch-up on-line offerings, in the UK for instance, catering for the TV -- AUDience's increasing desire for content at any time over a range of delivery platforms. While DOCSIS 3.0 is a similar technology to VDSL/FTTC - the path that most of Europe's telecom operators appear to be following as their primary investment upgrade - the fact that most cable networks have been built within the last 15-20 years makes them far more efficient to upgrade. Cable already enjoys a deeper level of fibre throughout the network with upgrades therefore mainly replacing the active electronics at the cabinet level. (It does not however require the significant civil works associated with the installation of new fibre that would otherwise drive up investment costs). Consequently, Fitch estimates a DOCSIS 3.0 upgrade can be achieved at a fraction of the cost of fibre investment for the incumbents. In the UK for instance, Virgin Media ('BB-'((BB minus))/Stable) has so far upgraded its network and is offering 50 Mb speeds to six million homes and expects to cover its remaining six million homes by Q309, at a cost which Fitch estimates at no more than GBP200 million-GBP300 million. BT Group ('BBB'/Stable) is meanwhile planning to spend GBP1.5 billion over the next four years on its hybrid FTTC/FTTH build covering 10 million homes. ********* 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 * * *