/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090429.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 29, 2009, Vol. 10, No. 83 Headlines A U S T R I A AUTO - BIKE SIMHANDL: Claims Registration Period Ends May 15 DOPPELHOFER LLC: Claims Registration Period Ends May 15 DOPPELHOFER & DOPPELHOFER: Claims Registration Period Ends May 15 ETS ELEKTROANLAGEN: Claims Registration Period Ends May 12 GANGLBERGER LLC: Claims Registration Period Ends May 12 INDUSTRIEDIENSTLEISTUNGEN MUSTER LLC: Claims Filing Ends May 12 JOSEF BAUER: Claims Registration Period Ends May 12 S.A.G. LLC: Claims Registration Period Ends May 15 UNICREDIT BANK: Moody's Cuts Financial Strength Rating to 'D+' E S T O N I A SWEDBANK AS: Moody's Reviews 'D' Bank Financial Strength Rating F R A N C E CALYON: Moody's Cuts Ratings on Three Junior Daphne Swaps to Low-B SRF S.A.: Applies for Insolvency; 154 Jobs Affected STADE FINANCE: S&P Withdraws 'CCC' Rating on EUR121.852 Mil. Notes G E R M A N Y ARTECH RECYCLINGTECHNIK: Claims Registration Period Ends May 14 CPF BETEILIGUNGS: Claims Registration Period Ends May 15 EVENTWERK TELTRONIK: Claims Registration Period Ends May 27 GOURMET GASTRO: Claims Registration Period Ends June 3 HYPO REAL: To Seek Shareholder Nod on June 2 for Capital Increase I.A.V. GMBH: Claims Registration Period Ends June 16 INTECHMA GMBH: Claims Registration Period Ends June 15 LESCH GETRANKE: Claims Registration Period Ends May 20 VG MICROFINANCE-INVEST: Fitch Cuts Rating on Senior Notes to 'BB+' ZEUS VERWALTUNGS: Claims Registration Period Ends June 5 I R E L A N D SKYE CLO: Moody's Junks Rating on EUR27.5 Mln Class E Notes * IRELAND: Court Judgments for Unpaid Debt Up 96% in 1Q 2009 I T A L Y INEOS VINYLS: Sartor Threatens Insolvency Over Eni Dispute TISCALI SPA: In Talks Over Disposal of UK Broadband Business K A Z A K H S T A N ALLIANCE DPR: Fitch Junks Ratings on US$67.9 Mil. 2006-B Notes ALLIANCE TRADE: Creditors Must File Claims by May 29 AMRITA-T LLP: Creditors Must File Claims by May 29 DOMUS REALTY: Creditors Must File Claims by May 29 FEESKO LLP: Creditors Must File Claims by May 29 INFORMER SERVICE: Creditors Must File Claims by May 29 JUMAT LLP: Creditors Must File Claims by May 29 KAZTEMIRTRANS JSC: Moody's Downgrades Issuer Rating to 'Ba1' MUNAI KURYLYS-EMBA: Creditors Must File Claims by May 29 SAR SU RAM: Creditors Must File Claims by May 29 TAIGER LLP: Creditors Must File Claims by May 29 TOKYMA LLP: Creditors Must File Claims by May 29 K Y R G Y Z S T A N AMANTA CAPITAL: Creditors Must File Claims by May 8 ERKIN TRADE: Creditors Must File Claims by May 8 INFOX STROY: Creditors Must File Claims by May 8 TETRABASE RETAIL: Creditors Must File Claims by May 8 UNITED AUDIT: Creditors Must File Claims by May 8 N E T H E R L A N D S IMPRESS HOLDINGS: S&P Changes Outlook to Stable; Keeps 'B+' Rating P O L A N D GETIN BANK: Moody's Cuts Bank Financial Strength Rating to 'D-' LOT: May Go Bankrupt if New Investor Not Found R U S S I A DAIRY PLANT: Creditors Must File Claims by June 17 GLAZOVSKIY WOOD: Creditors Must File Claims by May 17 KAZANORGSINTEZ OJSC: Fitch Cuts LT Issuer Default Rating to 'C' METALLURGICAL COM'L: Moody's Assigns 'E+' Fin'l Strength Rating OLYMPIC ZHIL: Creditors Must File Claims by May 17 ROSSIYANKA OJSC: Creditors Must File Claims by May 17 SEV-ZAP-STROY LLC: Creditors Must File Claims by May 17 SHCHERBAKOVSKIY BREWERY: Creditors Must File Claims by June 17 STROY-BALT LLC: Creditors Must File Claims by May 17 URAL CONSTRUCTION: Creditors Must File Claims by June 17 YUM-CHER-MET LLC: Creditors Must File Claims by May 17 ZAURALSKIY FOUNDRY: Creditors Must File Claims by May 17 * Moody's Confirms 'B3' Currency Ratings on Moscow's Oblast Region S W I T Z E R L A N D ALECON JSC: Creditors Must File Proofs of Claim by June 2 AB + AUF BAU: Creditors Must File Proofs of Claim by June 2 BAUMANN KMU-TREUHAND LLC: Claims Filing Deadline is May 26 EUROPEAN ENTERTAINMENT: Proofs of Claim Filing Deadline is May 29 FANTOP LLC: Creditors Have Until Oct. 21 to File Proofs of Claim HOTEL ROESSLI: Claims Filing Deadline is June 9 IBUS ZENTRALSTRASSE: Claims Filing Deadline is April 1, 2010 PB HAUSTECHNIK: Creditors Must File Proofs of Claim by June 2 PENTA CONTAINER: Creditors' Proofs of Claim Due by June 15 U K R A I N E BARREL PLUS: Creditors Must File Claims by May 10 GRADCOMSERVICE SUBSIDIARY: Creditors Must File Claims by May 9 GRANDSIMBUILDING LLC: Creditors Must File Claims by May 10 GRANITE QUARRY: Court Starts Bankruptcy Supervision Procedure SIS LOGISTIC: Creditors Must File Claims by May 10 U N I T E D K I N G D O M CAPITAL & REGIONAL: Auditors Express Going Concern Doubt DIPLOMAT EXTRUSIONS: Appoints Administrators from Tenon Recovery INTEMPO DIGITAL: Taps Joint Administrators from PwC ITV PLC: Moody's Cuts Rating to 'Ba3' on Weak UK TV Ads Markets J. MCINTYRE LTD: Taps Joint Administrators from Tenon Recovery JJB SPORTS: Creditors Back CVA Proposal; Avoids Administration LLOYDS BANKING: To Cut 985 Jobs at Bank of Scotland Dealer Finance LUDGATE FUNDING: S&P Junks Rating on Class E Notes PREMIER ELECTRICAL: Appoints Administrators from Tenon Recovery RIVERDANCE GROUP: Taps Joint Administrators from Grant Thornton RMAC SECURITIES: S&P Puts 'BB' Rating on B1C Notes on Neg. Watch ROYAL BANK: Expects GBP4.5BB Profit From Bond Buyback Program * UK: Gov't to Consult Two Proposed Changes to Insolvency Laws * Begbies Traynor Says UK Recession Continues Unabated * PwC Expects Room Rate Declines in London and Regional Hotels ********* ============= A U S T R I A ============= AUTO - BIKE SIMHANDL: Claims Registration Period Ends May 15 ------------------------------------------------------------ Creditors owed money by Auto - Bike Simhandl LLC have until May 15, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Michael Schnalzer Bismarkstrasse 5 8280 Fuerstenfeld Austria Tel: 03382/52 610 Fax: 03382/52 331 - 16 E-Mail: kbs@recht-so.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 20, 2009, for the examination of claims. DOPPELHOFER LLC: Claims Registration Period Ends May 15 ------------------------------------------------------- Creditors owed money by Doppelhofer LLC have until May 15, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Wolfgang Dlaska Joanneumring 11/4 8010 Graz Austria Tel: 0316/825580-0 Fax: 0316/825580-10 Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on April 15, 2009, for the examination of claims. DOPPELHOFER & DOPPELHOFER: Claims Registration Period Ends May 15 ----------------------------------------------------------------- Creditors owed money by Doppelhofer & Doppelhofer LLC have until May 15, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Wolfgang Dlaska Joanneumring 11/4 8010 Graz Austria Tel: 0316/825580-0 Fax: 0316/825580-10 E-mail: office@dlaska.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on May 20, 2009, for the examination of claims. ETS ELEKTROANLAGEN: Claims Registration Period Ends May 12 ---------------------------------------------------------- Creditors owed money by ETS Elektroanlagen LLC have until May 12, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr.iur., M.B.L. Guenther Grassner Suedtirolerstrasse 4-6 4020 Linz Austria Tel: +43 70 77 08 15 Fax: +43 70 77 08 16 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 26, 2009, for the examination of claims at: Land Court of Linz Hall 522 Linz Austria GANGLBERGER LLC: Claims Registration Period Ends May 12 ------------------------------------------------------- Creditors owed money by Ganglberger LLC have until May 12, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Gerhard Nathschlager Huemerstrasse 23 4020 Linz Austria Tel: 0732/77 55 44-16 Fax: 0732/77 55 44-10 E-mail: insolvenz@bzp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on May 26, 2009, for the examination of claims at: Land Court of Linz Hall 522 Linz Austria INDUSTRIEDIENSTLEISTUNGEN MUSTER LLC: Claims Filing Ends May 12 --------------------------------------------------------------- Creditors owed money by Industriedienstleistungen Muster LLC have until May 12, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Clemens Richter Esteplatz 4 1030 Vienna Austria Tel: 712 33 30 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on May 26, 2009, for the examination of claims. JOSEF BAUER: Claims Registration Period Ends May 12 --------------------------------------------------- Creditors owed money by Josef Bauer Transporte LLC have until May 12, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stephan Riel Schiesstattring 35/13 3100 St. Poelten Austria Tel: 02742/74 731 Fax: 02742/74 731-22 E-Mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on June 2, 2009, for the examination of claims at: Land Court of St. Poelten Room 216 Second Floor St. Poelten Austria S.A.G. LLC: Claims Registration Period Ends May 15 -------------------------------------------------- Creditors owed money by S.A.G. LLC have until May 15, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Herbert Ortner Hauptplatz 46 8570 Voitsberg Austria Tel: 03142/22 3 03 Fax: 03142/22 3 03 - 6 E-mail: office@recht-kompetent.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on May 20, 2009, for the examination of claims. UNICREDIT BANK: Moody's Cuts Financial Strength Rating to 'D+' -------------------------------------------------------------- Moody's Investors Service has downgraded the bank financial strength rating of UniCredit Bank Austria AG to D+ from C+ and its long-term debt and deposit ratings to A1 from Aa2. In addition, the bank's preferred stock ratings were downgraded to A3 from A1. The outlook on all the ratings is negative. The Prime-1 short- term deposit rating was affirmed. The downgrade of the BFSR to D+ which maps into a BCA of Baa3 reflects Moody's expectation that the accelerating global macroeconomic downturn is likely to have a material and continuing effect on Bank Austria's performance given that the dominant share of its revenues stem from activities in struggling Central & Eastern Europe countries and to a lesser extent in Austria. Consequently, the bank is confronting increasing pressure on asset quality (exacerbated by some concentration risks in its loan portfolio), capital ratios, revenues and earnings. "Bank Austria is a dominant player in the Austrian corporate banking market. Furthermore, it has built a geographically diversified presence throughout Eastern Europe with favourable long-term prospects in particular in countries that will join the EU and the Eurozone. Nonetheless, the economic uncertainty and instability in many of these CEE markets at present and the pressure on corporate clients due to the global economic environment will weaken revenues and earnings streams and further damage asset quality," said Dominique Nutolo, a Frankfurt-based Moody's Assistant Vice President and lead analyst for Bank Austria. Bank Austria's performance is heavily dependent on the group's well-established banking franchises across many countries in the CEE region. Under the UniCredit group's strategy, most of the group's activities in the region have been positioned under Bank Austria. In 2008, Bank Austria's CEE division contributed the majority of its pre tax profit of EUR1.5 billion, with Russia, Turkey, Croatia and the Czech Republic being the most important markets, followed by the activities in Bulgaria, Ukraine and Romania. Moody's BFSR downgrade also captures the pressure that the bank will be facing to maintain an adequate capital ratio in view of the likely additional write downs that the bank will incur in addition to the hefty provisions set aside in 2008. Overall Moody's believes that a D+ BFSR better captures this mixed profile. The rating agency adds that the D+ BFSR is contingent upon Bank Austria's capital ratios benefiting from a significant capital injection by the Austrian government, which is expected to be in the range of EUR2 billion to EUR3 billion. This should enable the bank to absorb some of its expected losses and write downs without adversely affecting its overall credit profile. Furthermore, Moody's notes that Bank Austria's exposures to structured credit products are limited and manageable and should therefore not have a significant impact on its earnings, capital or liquidity given the mark downs recorded thus far. The debt and deposit ratings incorporate the unchanged probability of support from Bank Austria's parent, UniCredit SpA, whereas the negative outlook on Bank Austria's debt and deposit ratings reflects the negative outlook on UniCredit SpA's BFSR. The ratings of Bank Austria's subsidiaries are not affected by this rating action as they benefit directly from the support of UniCredit SpA. Moody's previous rating action on Bank Austria was implemented on 7 October 2008, when it affirmed the Aa2/P-1/C+ ratings in connection with a rating action on its parent, UniCredit SpA. UniCredit Bank Austria AG is domiciled in Vienna, Austria. At the end of December 2008, it had total consolidated assets of EUR222.2 billion and equity of EUR14.2 billion pursuant to IFRS. The group's Tier 1 ratio was 6.8%, according to BIS standards. For the financial year 2008, the bank reported consolidated pre-tax profits of EUR1.5 billion and net income of EUR1.1 billion. ============= E S T O N I A ============= SWEDBANK AS: Moody's Reviews 'D' Bank Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service placed Swedbank AS's D bank financial strength rating, Baa2 long-term global local currency deposit and debt ratings and Prime-2 short-term rating on review for possible downgrade. Swedbank AS (formerly AS Hansapank) is a wholly owned Estonian subsidiary of Sweden's Swedbank AB (A1/C-, on review for possible downgrade), accounting for around 17% of the parent's lending at the end of March 2009. The rating action was prompted by the reported rapid decline in Swedbank AS's profitability and asset quality, which is much more severe than Moody's previously expected. The rating agency notes that this decline exceeds the expected losses from the bank's loan portfolio that were incorporated into the last rating action, in February 2009. The bank's operations continue to be severely negatively affected by the ongoing recession in the Baltic region. Swedbank AB's Baltic Banking (which comprises Swedbank AS) reported an operating loss of SEK2.9 billion in Q1 2009, down from a profit of SEK1.2 billion in the equivalent period of 2008. The decrease was primarily due to a substantial increase in loan loss provisions, which were SEK4.2 billion in Q1 2009, up from SEK173 million in Q1 2008. At the same time, decreasing lending volumes and an increase in overdue loans had a further adverse effect on the bank's underlying core performance, as reflected by its net interest income, which decreased by 11% year-on-year. Also, net commission income decreased by 15% (in local currency), primarily due to the low level of activity in global and domestic financial markets. The share of reported impaired loans increased to 4.9% at the end of March 2009, up from 2.3% at the beginning of the year. Impaired loans stood at the highest level in Latvia, at 8.5%, followed by 3.6% in Lithuania and 2.5% in Estonia. Moody's says that the review will focus on: (i) the amount of capital available to Swedbank AS to absorb future high credit losses given the rating agency's revised stress scenario assumptions; and (ii) Swedbank AS's future earnings capacity and its ability to replenish its capital cushion given Moody's expectation that large loan loss provisions will continue to constrain the bank's profitability. These ratings of Swedbank AS have been placed on review for possible downgrade: -- BFSR: D -- Long-term bank deposit rating: Baa2 -- Senior unsecured rating: Baa2 -- Subordinate MTN rating: Baa3 -- Commercial paper rating: Prime-2 -- Other short term rating: Prime-2 Moody's previous rating action on Swedbank AS was implemented on February 27, 2009, when Moody's downgraded the bank's long-term GLC deposit and debt ratings to Baa2 from A1 and its BFSR to D from C-. Also, the bank's short-term ratings were downgraded to Prime-2 from Prime-1. Headquartered in Tallinn, Estonia, Swedbank AS reported total consolidated assets of EUR25 billion at the end of 2008. =========== F R A N C E =========== CALYON: Moody's Cuts Ratings on Three Junior Daphne Swaps to Low-B ------------------------------------------------------------------ Moody's Investors Service has downgraded its ratings of five credit default swaps entered into by Calyon. The transactions are managed synthetic Balance Sheet CDOs referencing a pool of bank originated corporate loans. The rating actions reflect the deterioration in the credit quality of the transaction's reference portfolios, as indicated by the average increase across the portfolios, in the portfolio average rating factor by 33% since closing, and the revision of certain key assumptions that the agency uses to rate and monitor corporate CDOs. These revised assumptions incorporate Moody's expectation that European and global corporate default rates are likely to greatly exceed their historical long-term averages and reflect the heightened interdependence of credit markets in the current global economic contraction. Specifically, the changes include: (1) a 30% increase in the assumed likelihood of default for corporate credits in CDOs (2) an increase in the degree to which ratings are adjusted according to other credit indicators such as rating Reviews and Outlooks and (3) an increase in the default correlation applied to corporate portfolios as generated through a combination of higher default rates and increased asset correlations. These revised assumptions are described in greater detail in the press release published on January 15, 2009. Moody's notes that the global corporate loan sector currently has a negative outlook and has shown signs of increasing weakness in terms of credit performance. The sector is further stressed by the anticipated limited refinancing opportunities for EMEA corporate issuers over the next six to twelve months. In addition, for the majority of the underlying referenced assets, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale. Because the mapping was performed prior to April 1, 2007, an additional stress was applied to capture potential deviations from the established mapping. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (March 2009) -- Framework for De-Linking Hedge Counterparty Risks from Global Structured Finance Cashflow Transactions (May 2007) The rating actions are: Calyon (France) - Enee I Credit Default Swap -- EUR6,376,924,000 Super Senior Credit Default Swap, Downgraded to Aa1; previously on 24 January 2007 Assigned Aaa -- EUR85,176,000 Junior Swap, Downgraded to Baa2; previously on 24 January 2007 Assigned A3 Calyon - Junior CDS related to Daphne Finance II and III and Enee I -- 2.40%-4.50% Junior Swap of the Daphne Finance II plc portfolio, Downgraded to Ba2; previously on 28 September 2007 Assigned Baa3 -- 2.40%-4.72% Junior Swap of the Daphne Finance III plc portfolio, Downgraded to Ba1; previously on 28 September 2007 Assigned Baa3 -- 3.71%-5.01% Junior Swap of the Enee I portfolio, Downgraded to Ba2; previously on 28 September 2007 Assigned Baa3 SRF S.A.: Applies for Insolvency; 154 Jobs Affected --------------------------------------------------- SRF S.A., the facility of Germany-based wheel manufacturer Borbet Group in the eastern French town of Soultzmatt, has applied for insolvency, putting 154 jobs at risk, reifenpresse.de reports. The report says whether production will continue at the site is now an issue for the liquidator to decide, although it seems likely that existing orders can be processed. STADE FINANCE: S&P Withdraws 'CCC' Rating on EUR121.852 Mil. Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'CCC' rating on the EUR121.852 million 5.25% secured notes issued by Stade Finance a.r.l. This action follows the April 22 withdrawal of the financial strength rating on Financial Guaranty Insurance Co. FGIC provides financial guarantees for payments on the notes issued by Stade Finance in cases where transaction cash flows would be insufficient to make payments. Under S&P's current criteria, the rating on Stade Finance would be the higher of the FGIC rating and a Standard & Poor's underlying rating, which reflects the stand- alone credit profile of the notes. When Stade Finance was initially rated, however, S&P did not assign a public SPUR to the notes. Consequently, S&P's rating on the notes was always equalized to that on FGIC. Since the notes were issued, the issuer has provided no information that would enable us to assign or maintain a SPUR. If the issuer had provided S&P with appropriate information, the rating agency would have assigned a SPUR to Stade Finance. Following the withdrawal of the rating on FGIC and absent a Stade Finance SPUR, S&P now withdraws the note rating, as S&P consider it has no present basis to maintain a rating. Moreover, due to the lack of underlying information about Stade Finance, S&P makes no comment about its credit profile prior to the rating withdrawal. The Stade Finance transaction closed in July 1998 and aimed to provide refinancing to the Consortium Stade de France, owner of a 30-year concession for the construction and operation of the Stade de France in Paris. ============= G E R M A N Y ============= ARTECH RECYCLINGTECHNIK: Claims Registration Period Ends May 14 --------------------------------------------------------------- Creditors of ARTech Recyclingtechnik GmbH have until May 14, 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 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hagen Meeting Hall 252 Second Floor Heinitzstrasse 42/44 58097 Hagen 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. Norbert Wischermann Untermauerstr. 22 58332 Schwelm Germany The court opened bankruptcy proceedings against the company on June 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ARTech Recyclingtechnik GmbH Attn: Felix Assfalg, Manager Rombrocker St. 17 a 58640 Iserlohn Germany CPF BETEILIGUNGS: Claims Registration Period Ends May 15 -------------------------------------------------------- Creditors of CPF Beteiligungs 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 10:00 a.m. on June 15, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bad Homburg v.d. Hoehe Room E32 Auf der Steinkaut 10-12 61352 Bad Homburg v.d. Hoehe 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: Angelika Amend Minnholzweg 2b D 61476 Kronberg/Ts. Germany Tel: 06173/78340 Fax: 06173/783422 The court opened bankruptcy proceedings against the company on April 15, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CPF Beteiligungs GmbH Hessenring 83 61348 Bad Homburg v. d. Hoehe Germany Attn: Jean-Paul Vican, Manager Stresemannstrasse 11 61462 Koenigstein/Ts. Germany EVENTWERK TELTRONIK: Claims Registration Period Ends May 27 ----------------------------------------------------------- Creditors of Eventwerk Teltronik GmbH have until May 27, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 1, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: Peter Reh Austrasse 83 35745 Herborn Germany Tel: 02772/6466-0 Fax: 02772/6466-77 E-mail: ra@accedis.de Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Reh Austrasse 83 35745 Herborn Germany Tel: 02772/6466-0 Fax: 02772/6466-77 E-Mail: ra@accedis.de The court opened bankruptcy proceedings against the company on April 17, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Eventwerk Teltronik GmbH Attn: Michael Rene Schramm, Manager Paul-Schneider-Strasse 2 35625 Huettenberg Germany GOURMET GASTRO: Claims Registration Period Ends June 3 ------------------------------------------------------ Creditors of Gourmet Gastro Service & Management GmbH have until June 3, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 15, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Potsdam Hall 24 Justice Center Jagerallee 10 - 12 14469 Potsdam 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. Nikolaus Schmidt Augustastrasse 1 06108 Halle (Saale) Germany The court opened bankruptcy proceedings against the company on April 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gourmet Gastro Service & Management GmbH Lessingallee 22 a 14612 Falkensee Germany Attn: Andreas Nowatzke, Manager Weinbergstrasse 9 A 14469 Potsdam Germany HYPO REAL: To Seek Shareholder Nod on June 2 for Capital Increase ----------------------------------------------------------------- Ulrike Daue at Dow Jones Newswires reports that Hypo Real Estate Holding AG said Friday it will ask shareholders June 2 to approve a capital increase that would exclude existing shareholders from participation. According to Dow Jones, the planned capital increase -- of up to EUR5.64 billion -- is the only agenda item for the June 2 extraordinary shareholders meeting, which will take place if the German government doesn't reach a 90% majority by 10:00 p.m. GMT May 4, when an offer to buy shares in Hypo RE at EUR1.39 a share expires. Dow Jones says if SoFFin manages to control 90% -- before or after the EGM -- it plans to squeeze out remaining shareholders. As reported in the Troubled Company Reporter-Europe on April 22, 2009, Reuters said the German government has given shareholders like J Christopher Flowers until June 30 to sell HRE shares or face expropriation. The report disclosed offer documents 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". The report related 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 the report, 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. The report stated 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. On April 14, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Germany's bank-rescue fund, Soffin, offered EUR1.39 or US$1.84 a share, or about EUR290 million, to acquire all of HRE'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, and President Horst Koehler signed the bill 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." I.A.V. GMBH: Claims Registration Period Ends June 16 ---------------------------------------------------- Creditors of I.A.V. GmbH have until June 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30a.m. on June 16, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 2 Building F Klingerstrasse 20 60313 Frankfurt/Main 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: Frank Moessle Pluta Rechtsanwalts GmbH Eingang A Trakehner Strasse 7-9 60487 Frankfurt am Main Germany Tel: 069/85096930 Fax: 069/850969329 E-mail: frankfurt@pluta.net Website: www.pluta.net The court opened bankruptcy proceedings against the company on April 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: I.A.V. GmbH Attn: Ilhan OEzcan, Manager Hanauer Landstrasse 523 60386 Frankfurt am Main Germany INTECHMA GMBH: Claims Registration Period Ends June 15 ------------------------------------------------------ Creditors of Intechma GmbH have until June 15, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 17, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Marburg/Lahn Hall 154 District Court Building Universitatsstrasse 48 35037 Marburg/Lahn 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: Christina Combecher Jahnstrasse 18 35066 Frankenberg Germany Tel: 06451/71919-22 Fax: 06451/7191921 The court opened bankruptcy proceedings against the company on April 14, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Intechma GmbH Attn: Heike Freitag, Manager Pforte 6 35083 Wetter Germany LESCH GETRANKE: Claims Registration Period Ends May 20 ------------------------------------------------------ Creditors of Lesch Getranke 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 9:15 a.m. on July 1, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Duisburg Hall C315 Kardinal-Galen-Strasse 124-132 47058 Duisburg 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: Dirk Hammes Hafenstrasse 35 47119 Duisburg-Ruhrort Germany The court opened bankruptcy proceedings against the company on April 9, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lesch Getranke GmbH Attn: Christian Schroeder, Manager Maassenstrasse 2 b 46514 Schermbeck Germany VG MICROFINANCE-INVEST: Fitch Cuts Rating on Senior Notes to 'BB+' ------------------------------------------------------------------ Fitch Ratings has downgraded VG Microfinance-Invest Nr. 1 GmbH's senior CDO notes to 'BB+' from 'BBB', and assigned the notes a Negative Outlook. The transaction consists of subordinated credit exposure against 20 (initially 21) microfinance institutions globally distributed across 15 jurisdictions. The portfolio's largest geographical exposures are Azerbaijan: 21.7%, Kenya: 17.1%, and Ecuador: 12.3%. The institutions were selected by Deutsche Bank AG ('AA-'((AA minus))/'F1+'/Rating Watch Negative) in its role as seller and protection buyer. The downgrade of the senior notes reflects Fitch's concerns about developments regarding ACODEP, a Nicaraguan MFI which represents 8.8% of the portfolio. Sharp asset deterioration in the MFI's loan book and political uncertainty have contributed to Fitch's assessment that default risks have materially increased regarding this institution. A further concern is that MFIs located in Eastern Europe and Asia may suffer from foreign exchange exposure as their local currencies have lost value against the US$. While individual institutions have come under increased pressure, the credit risk associated with the majority of the portfolio has remained stable, or in some cases has even improved slightly. In addition, the senior notes benefit from subordination of 40% provided by unrated junior and mezzanine notes, and excess spread is available to provide credit protection if the portfolio experiences defaults. Given the available credit enhancement, Fitch expects the CDO notes to be able to withstand the default of 5-6 names without incurring a loss. In its analysis, primarily due to the subordinated nature of the loan obligations, the agency assumed that no recoveries would be obtained following a default of an MFI. Despite the structural credit support, Fitch views approximately 60% of the portfolio as commensurate with 'CCC' or below risk. This portfolio credit risk is compounded by concentration risk as the portfolio is comprised of only 20 positions. Given these risks, as well as the performance concerns in selected positions, Fitch has downgraded the CDO notes by two notches to 'BB+'. The agency notes that this is the highest possible non-investment grade rating, reflecting the significant structural protection within the transaction. MFIs support micro-lending business and are generally active in poor regions of the world, or areas that suffer from under- developed banking segments. MFIs loan small sums of finance to small-scale entrepreneurs who are close to, or below, the poverty line and would therefore usually be ineligible for financing within the formal banking system. ZEUS VERWALTUNGS: Claims Registration Period Ends June 5 -------------------------------------------------------- Creditors of Zeus Verwaltungs u. Beteiligungs GmbH have until June 5, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cloppenburg Hall 6 Hauptgebaude Burgstrasse 9 49661 Cloppenburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christian Ruhe Marschstr. 7 49377 Vechta Germany Tel: 04441-9272-0 Fax: 04441-9272-30 The court opened bankruptcy proceedings against the company on April 16, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Zeus Verwaltungs u. Beteiligungs GmbH Hauptstrasse 4 b 49685 Emstek Germany Attn: Hartmut Rieger, Manager Stormstrasse 2 49685 Emstek Germany ============= I R E L A N D ============= SKYE CLO: Moody's Junks Rating on EUR27.5 Mln Class E Notes ----------------------------------------------------------- Moody's Investors Service has downgraded its ratings of two classes of notes issued by Skye CLO I Limited. The transaction is a managed synthetic CDO referencing leveraged loans and sub-investment grade corporate bonds. The rating actions are a response to credit deterioration in the collateral portfolio and the result of the application of revised and updated key modelling parameter assumptions that Moody's uses to rate and monitor ratings of collateralized loan obligations. Moody's announced these changes in a press release published on February 4, 2009. The revisions affect default probability and diversity score, which are key parameters in Moody's model for rating CLOs. The weighted average rating factor of the portfolio is significantly above the test level of 2,140 and securities rated below B2 represent 29.2% of the portfolio. Furthermore, defaults in the portfolio amounted to EUR16.9 million as of April 10, 2009. This credit deterioration is partially mitigated by early deleveraging of the transaction, which benefits senior tranches. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's publication below: -- Moody's Approach to Rating Collateralized Loan Obligations (March 2009) The rating actions are: Skye CLO I Limited: (1) EUR25,000,000 Class D Deferrable Interest Secured Floating Rate Credit-Linked Notes due 2019 -- Current Rating: Baa3 -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 4 March 2009 (2) EUR27,500,000 Class E Deferrable Interest Secured Floating Rate Credit-Linked Notes due 2019 -- Current Rating: Caa1 -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 4 March 2009 * IRELAND: Court Judgments for Unpaid Debt Up 96% in 1Q 2009 ------------------------------------------------------------ BreakingNews.ie reports that according to figures from the Inter Company Comparisons Information group, the number of court judgments against companies in Ireland for the recovery of unpaid debt increased by 96% for the first three months of the year. The report discloses that judgments worth EUR8.7 million were handed out in the first quarter compared to the same period in 2008. According to the report, companies based in Dublin accounted for the majority of the judgments at 39%, followed by Cork with 15% and Limerick on 13%. ========= I T A L Y ========= INEOS VINYLS: Sartor Threatens Insolvency Over Eni Dispute ---------------------------------------------------------- Plasteurope reports that Italian entrepreneur Fiorenzo Sartor has threatened to declare Ineos Vinyls Italia SpA insolvent over a dispute between the company and Eni about the pricing and supply of dichloroethane for its VCM facilities. Mr. Sartor, the report discloses, acquired the three VCM/PVC sites of Ineos Vinyls Italia at Porto Marghera, Porto Torres and Ravenna. Headquartered in Venezia-Marghera, Italy, Ineos Vinyls Italia SpA -- http://www.ineoschlor.com/-- is part of INEOS ChlorVinyls, one of the major chlor-alkali producers in Europe. TISCALI SPA: In Talks Over Disposal of UK Broadband Business ------------------------------------------------------------ Rupert Neate at Telegraph.co.uk reports that Tiscali SpA confirmed Friday last week that it was in talks over the disposal of its UK broadband business. According to Telegraph.co.uk, Tiscali is expected to receive a binding offer from Carphone Warehouse before the end of April. Carphone is now offering about GBP200 million, almost two-thirds less than the GBP550 million it offered last year, Telegraph.co.uk says citing a source close to the deal. Telegraph.co.uk discloses Tiscali, which is seeking to reduce its EUR500 million (GBP453 million) debt pile, negotiated a stay of execution from creditors, giving it until June to sort out its finances. Tiscali, as cited by Telegraph.co.uk, said sale negotiations were taking place in "parallel with the debt renegotiation process". Auditor's Doubts On April 17, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that Tiscali said it disagreed with Ernst & Young for not issuing an opinion on 2008 accounts and questioning the viability of its business. Citing Tiscali in a stock-exchange statement, the report related Ernst & Young has said it "can't express an opinion" on 2008 results as it is uncertain the company's business can continue unless Tiscali signs a debt renegotiation deal. According to the report, Tiscali said it has the backing of its main lenders and believes debt renegotiation can be completed by year's end. Bloomberg News recalled that in March, Tiscali halted payments on long-term bank debts. It had about EUR500 million (US$662 million) of long-term bank borrowings at the end of last year, the report said. JPMorgan Chase & Co. and Intesa SanPaolo SpA were the original underwriters and about 30 percent of the debt was later underwritten by four other financial institutions, according to Bloomberg News. About Tiscali Cagliari, Italy-based Tiscali S.p.A. (BIT:TIS) -- http://www.tiscali.com/-- is an Internet communications company providing broadband and narrowband access for consumer and business applications, as well as communications services and content. The Company's portfolio includes Internet access in the form of dial-up, broadband, satellite and leased lines, and hosting services, such as co-location, shared hosting and managed hosting. Tiscali also offers streaming media, telephony and such services as virtual private networks (VPN), allowing companies to communicate with remote branches. Its consumer products and services include Internet access, voice, media, Internet Protocol Television (IPTV) and value-added services, such as e-mail, Net calendar, Net fax, Net phone, mail, instant messaging and Web hosting. It is operational in Europe through its subsidiaries and joint ventures. As of June 30, 2008, Tiscali had approximately 3.2 million active users in Italy and the United Kingdom. =================== K A Z A K H S T A N =================== ALLIANCE DPR: Fitch Junks Ratings on US$67.9 Mil. 2006-B Notes -------------------------------------------------------------- Fitch Ratings has downgraded Alliance DPR Company SA's 2006-B and 2007-A notes, removed them from Rating Watch Negative (RWN) and assigned them a Recovery Rating of 'RR4'. Fitch also affirmed the 2006-A note. The rating actions are: -- Series 2006-A US$95 million notes affirmed at 'AAA'; Outlook Stable -- Series 2006-B US$67.9 million notes downgraded to 'CC' from 'B-' (B minus); off RWN; assigned 'RR4' Series 2007-A US$75 million notes downgraded to 'CC' from 'B-' (B minus); off RWN; assigned 'RR4' The transaction is a securitization of present and future diversified payment rights originated by Alliance Bank JSC, a private commercial bank headquartered in Almaty, Kazakhstan. Fitch's downgrade follows further changes in the collection flows for the diversified payment rights transaction, highlighting the agency's concerns regarding the volatility and composition of the flows, expressed in a commentary issued on April 14, 2009. According to Alliance's unaudited monthly report for March 2009, total monthly collections have dropped to US$14.4 million, from US$156.4 million the previous month, taking the monthly debt service coverage ratio to 1.4x, from 27.2x in February 2009. Fitch views this drop in the monthly DSCR as an indication that the flows to the transaction have been seriously impacted by the loss of confidence in the bank and by the general deterioration in the Kazakh economy. Fitch's downgrade of the notes to 'CC' reflects the agency's view that future flows may not be sufficient to repay the notes in full. As of March 2009, reported non-Kazakh collections were US$12.9 million, increasing from the previous month's value of US$1.6 million; itself a drop from the January non-Kazakh collections of US$36.1 million. Having increased substantially in February 2009 to US$154.8 million from US$43.9 million in January, Kazakh collections fell again in March, to US$1.5 million. Fitch assigned the 2006-B and 2007-A notes an 'RR4' Recovery Rating, reflecting the benefit to bondholders of the amount trapped in the reserve account, reported to be US$49.3 million, and the pre-funded amount already available to meet payment obligations in May 2009. Fitch also gave some credit in its Recovery Rating to Alliance Bank JSC's recovery prospects. Fitch's decision to affirm the 2006-A note is based on the guarantee and reimbursement agreement provided by the Asian Development Bank ('AAA'/Stable), guaranteeing the full payment of interest and principal on the note. Fitch also downgraded Alliance DPR Company's long-term IDR to 'CC', and placed it on Rating Watch Negative. ALLIANCE TRADE: Creditors Must File Claims by May 29 ---------------------------------------------------- LLP Alliance Trade AG has gone into liquidation. Creditors have until May 29, 2009, to submit proofs of claim to: Jeltoksan Str. 118 Almaty Kazakhstan AMRITA-T LLP: Creditors Must File Claims by May 29 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai commenced bankruptcy proceedings against LLP Amrita-t. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan DOMUS REALTY: Creditors Must File Claims by May 29 -------------------------------------------------- LLP Domus Realty has gone into liquidation. Creditors have until May 29, 2009, to submit proofs of claim to: Inquiries can be addressed to 8 (7272) 59-00-11. FEESKO LLP: Creditors Must File Claims by May 29 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Karaganda commenced bankruptcy proceedings against LLP Feesko. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin Str. 9 Karaganda Kazakhstan INFORMER SERVICE: Creditors Must File Claims by May 29 ------------------------------------------------------ LLP Informer Service has gone into liquidation. Creditors have until May 29, 2009, to submit proofs of claim to: Almatinskaya Str. 49 Almaty District Astana Kazakhstan JUMAT LLP: Creditors Must File Claims by May 29 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau commenced bankruptcy proceedings against LLP Jumat. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan KAZTEMIRTRANS JSC: Moody's Downgrades Issuer Rating to 'Ba1' ------------------------------------------------------------ Moody's Investors Service has downgraded to Ba1 from Baa3 the issuer rating of JSC Kaztemirtrans'. The outlook on the rating is stable. At the same time Moody's assigned a Ba1 Corporate Family Rating. The rating action concludes the review for possible downgrade that was initiated on January 21, 2009, due to the challenging market environment facing the company and Moody's decision to reassess the support and default dependence assumptions embodied in the company's ratings under the agency's rating methodology for Government Related Issuers to incorporate increasing reliance of key domestic businesses in the Republic of Kazakhstan on the government financial support. The conclusion of the review was done simultaneously with the conclusion of the review of the ratings of JSC National Company Kazakhstan Temir Zholy as KTT is a wholly-owned subsidiary of KTZ and is managed as integral part of the KTZ group. The rating action reflects these Moody's decisions: (i) increase the default dependence assessment for the company to the high end of the medium category and, at the same time, (ii) lower somewhat the support flowing indirectly from the government of the Republic of Kazakhstan through KTZ. Moody's has not changed the company's standalone credit quality assessment, which was confirmed at a level equivalent to B1, though the agency considers it now weakly positioned in its category as, following its predominant customer KTZ, KTT is under pressure from the weakening market for freight transportation services. The increase of the default dependence reflects Moody's view that there is an increasing correlation of the financial profiles of the government of the Republic of Kazakhstan and its related GRIs in the crisis environment, as it is likely that the profiles are largely impacted by the same factors. Moody's continues to incorporate a high support assessment -- though at a moderately reduced level -- into KTT's rating which recognizes the key importance of KTT's railcar operator business for KTZ to play its strategic role as the national rail company in Kazakhstan. At the same time, Moody's notes that KTT's access to the state support is not direct as the company is supported through KTZ. Moody's assessment of KTT's standalone creditworthiness at a level equivalent to B1 is pressured by a reduction of freight transportation volumes and the respective contraction of business of KTZ driven by the economic downturn in Kazakhstan and globally. In the crisis environment, KTT may see its tariffs capped by the regulatory bodies, as part of the government's efforts to support the economy. Given its sizable investment program, though likely to be adjusted to the changed market needs, KTT's standalone credit profile and leverage metrics in particular (even normalized, with KTT's loans to KTZ and JSC Locomotive netted from KTT's debt) may deteriorate. The risk is aggravated by the mentioned foreign currency exposure of the company. However, the agency notes that KTT's current standalone assessment, which is rather based on normalized metrics as above mentioned, can accommodate a limited deterioration of its credit metrics, should a reduction of the rail-based freight transportation market be limited to 10% and should KTT be able to timely adjust its sizable investment program to the market developments. A deeper reduction of the market may make the company's financial profile more aggressive and in line with a lower rating category. Moody's positively notes KTT's cash reserves accumulated by now and its cash accumulation plan (as part of KTZ's respective plan) to address large mid-term debt maturities, however, this cushion and further implementation of the plan may be challenged by the worsening economic conditions. The stable outlook on KTT's rating reflects Moody's expectation that KTT will remain highly supported by the government going forward. At the same time, the outlook takes into account that the company's rating could withstand some deterioration of the company's standalone assessment, given other GRI inputs unchanged. However, for KTT to maintain its current standalone assessment, Moody's would expect it to avoid a material deterioration of the financial profile, maintain a strong liquidity position and accumulate cash reserves to address mid-term debt maturities in line with its plan. Any sign of deterioration of the state support would negatively affect KTT's rating. The rating could be downgraded if the reduction of the rail transportation market were significantly deeper compared to the currently expected 10% for 2009, with the company's cash flow generation ability and its leverage metrics severely deteriorated. Weakening liquidity position could also have a downward pressure on the rating. The last rating action on KTT was implemented on January 21, 2009, when Moody's placed the company's rating on review for possible downgrade due the challenging market conditions and the agency's decision to reassess default dependence and support assumptions for the company. Headquartered in the city of Astana, KTT is a 100%-owned subsidiary of KTZ, which is the 100% state-controlled vertically integrated railway business in the Republic of Kazakhstan. The sole shareholder of KTZ is the state represented by JSC National Welfare Fund SamrukKazyna. KTT owns and operates the largest railcar fleet in Kazakhstan, generating its revenues largely from leasing railcars out to the KTZ group. The latter provides about 94% of KTT's 2007 revenues of KZT30.6 billion (approximately US$250 million). MUNAI KURYLYS-EMBA: Creditors Must File Claims by May 29 -------------------------------------------------------- LLP Munai Kurylys-Emba has gone into liquidation. Creditors have until May 29, 2009, to submit proofs of claim to: Promzona Birlik Atyrau Kazakhstan SAR SU RAM: Creditors Must File Claims by May 29 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against LLP Sar Su Ram. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan TAIGER LLP: Creditors Must File Claims by May 29 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against LLP Taiger. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan TOKYMA LLP: Creditors Must File Claims by May 29 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Mangistau commenced bankruptcy proceedings against LLP Tokyma. Creditors have until May 29, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan =================== K Y R G Y Z S T A N =================== AMANTA CAPITAL: Creditors Must File Claims by May 8 --------------------------------------------------- LLC Amanta Capital Ltd has shut down. Creditors have until May 8, 2009, to submit proofs of claim. Inquiries can be addressed to (+996 312) 61-17-31. ERKIN TRADE: Creditors Must File Claims by May 8 ------------------------------------------------ LLC Erkin Trade House has shut down. Creditors have until May 8, 2009, to submit proofs of claim to: FEZ "Bishkek" Ak-Chyi Bishkek Kyrgyzstan INFOX STROY: Creditors Must File Claims by May 8 ------------------------------------------------ LLC Infox Stroy has shut down. Creditors have until May 8, 2009, to submit proofs of claim to: Chui Ave. 182 Bishkek Kyrgyzstan TETRABASE RETAIL: Creditors Must File Claims by May 8 ----------------------------------------------------- LLC Tetrabase Retail Equipment has shut down. Creditors have until May 8, 2009, to submit proofs of claim to: FEZ "Bishkek" Ak-Chyi Bishkek Kyrgyzstan UNITED AUDIT: Creditors Must File Claims by May 8 ------------------------------------------------- LLC United Audit has shut down. Creditors have until May 8, 2009, to submit proofs of claim. Inquiries can be addressed to (0-550) 55-01-10. ===================== N E T H E R L A N D S ===================== IMPRESS HOLDINGS: S&P Changes Outlook to Stable; Keeps 'B+' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said it revised its outlook on The Netherlands-based metal packaging group Impress Holdings B.V. to stable from negative. At the same time, S&P affirmed the ratings on the company, including the 'B+' long-term corporate credit rating. "The outlook revision reflects S&P's reduced expectation of a rating downgrade within the next 12 months, owing, above all, to the company's improved liquidity situation, its relatively stable business in the current cyclical downturn, and S&P's view of its relatively steady cash flow prospects through 2009," said Standard & Poor's credit analyst Izabela Listowska. The ratings on Impress continue to be constrained by the company's high debt leverage and its exposure to input cost pressures. What's more, the company faces meaningful competition, in particular from smaller regional players, in fairly mature markets. These risks are partially mitigated by Impress' leading positions in its core markets, three-quarters of which are relatively recession-resistant. Furthermore, the company benefits from its good geographic and customer diversification, longstanding relationships with key customers, and good profitability. Despite adverse currency effects, inability to fully recover unexpected oil-based input cost inflation, and declining volumes notably in the Paints & Coatings and Aerosols business segments (totaling about 20% of Impress operations), Impress' adjusted EBITDA expanded to about EUR228 million in 2008, from about EUR217 million in 2007. This was helped by earnings contribution from the acquisition of the food-can and aerosol division of Australia-based Amcor Ltd. (BBB/Stable/A-2) in October 2007. At the same time, the Processed Food business segment (about 70% of Impress' operations) demonstrated comparatively defensive qualities with volumes holding up relatively well in the current cyclical downturn. Impress is highly leveraged, with reported debt of about EUR1.07 billion at Dec. 31, 2008. "We believe that despite difficult economic conditions Impress will continue to generate relatively stable earnings and cash flows, helped by its ability to increase selling prices and realize efficiency gains," said Ms. Listowska. S&P believes the company will be able to achieve adjusted FFO to debt at 10%-15% and adjusted debt to EBITDA below 5.0x, which is commensurate with the 'B+' rating. =========== P O L A N D =========== GETIN BANK: Moody's Cuts Bank Financial Strength Rating to 'D-' --------------------------------------------------------------- Moody's Investors Service has downgraded Getin Bank's long-term local and foreign currency deposit ratings to Ba3 from Ba2. The bank financial strength rating was downgraded to D- from D and the foreign currency debt rating to Ba3 from Ba2. All the ratings have been placed on negative outlook The rating action concluded the review for possible downgrade initiated in January 2009. Commenting on the downgrade Moody's noted that the negative trends on the market which became apparent in the Q4 2008 may materialise in the polish banking sector and are exerting pressure on the bank's financial fundamentals. The current short-term funding environment and virtual absence of long-term wholesale opportunities are having a limiting effect on Getin's until now above-average growth trends and profitability. Also, the recent FX fluctuations are likely to lead to higher loan-to-value exposures and higher expected losses on Getin's mortgage portfolio which is predominantly denominated in Swiss francs. The FX mismatch of Getin's asset-liability structure is currently mitigated by short-term swap arrangements partly with the government and other foreign counterparties which are renewed on an on-going basis. This is relatively costly and puts additional pressure on the ability of the bank to stabilize its funding costs. Getin has substantially increased its retail deposit base during the first quarter of 2009 in order to replace its maturing wholesale liabilities. There is a large Eurobond repayment due on May 14, 2009 in the residual amount of EUR200 million (excluding the recent buy-backs of EUR150 million) which the bank intends to fully retire, having built up sufficient funds to do so. Moody's however noted that the incremental funding cost of retail deposits was above-average and is likely to affect Getin's net interest margin during this year. The rating agency added that overall, it considers that Getin's growth potential is being constrained by its access to retail and corporate deposits which is being fiercely contended by other Polish banks. On the other hand Moody's noted that Getin's historically above- average profitability and full retention of net profits contributed to healthy capital ratios (Tier 1 ratio was at 11.7% as at end-2008). Provisioning levels were also maintained at a high level with loan-loss reserves as a percentage of NPLs at 90% for the same period. These reserves to some extend can absorb the expected deteriorating trends in asset quality. However, the rating agency said that in its opinion the current operating environment remains difficult for smaller specialized mortgage lenders like Getin and the limited diversification of its funding sources is likely to remain a principal constraining factor in the bank's ratings. These considerations also contribute to Moody's negative outlook on the current ratings. Moody's said that it also believes that these fundamental trends outweigh the potentially positive impact from the merger with Noble Bank (unrated) which was noted Moody's previous rating action. Overall, Moody's said that it believes that due to the relatively limited size, and developing franchise of Noble Bank and its portfolio, the merger is unlikely to be rating enhancing for the combined entity. The last rating action was on January 30, 2009, when Moody's placed Getin Bank's Ba2 long-term local and foreign currency deposit ratings, D bank financial strength rating and Ba2 foreign currency debt rating under review for possible downgrade. It was prompted by concerns that recent adverse trends in the Polish operating environment deepened and it would make it even more difficult for the bank to maintain its above-average growth rates and profitability ratios. These ratings have been downgraded: -- Bank financial strength rating to D- from D -- Local currency deposit rating to Ba3 from Ba2 -- Foreign currency deposit rating to Ba3 from Ba2 -- Senior unsecured debt (Getin Finance Plc) to Ba3 from Ba2 Headquartered in Katowice, Getin Bank reported net profit of PLN360 million (EUR87.4 million) under IFRS, with total assets of almost PLN23.3 billion (EUR5.66 billion) in 2008. LOT: May Go Bankrupt if New Investor Not Found ---------------------------------------------- LOT, Poland's national carrier, could go bankrupt if it fails to find investors within weeks, Thenews.pl reports. According the report, the only chance for the airline is to find a new investor or to be taken over by a competitor. The report notes the Polish government can not bail out the airline as this would contravene competition rules laid down by the European Commission. In 2008, LOT incurred a loss of PLN700 million, more than PLN300 million of which resulted from contracts for fuel, made when the price was high last year, the report discloses. The report states an auditor refused to sign the airline's balance sheet. The report recalls last month the airline liquidated its subsidiary, no-frills airline Centralwings. The airline, Thenews.pl says, is considering job cuts as part of restructuring efforts. Headquartered in Warsaw, Poland, Polskie Linie Lotnicze LOT, or LOT Polish Airlines -- http://www.lot.com-- serves about a dozen cities in Poland and about 120 destinations across Europe and North America. Subsidiaries include regional carrier EuroLOT and charter operator Centralwings. Overall, LOT and its affiliates maintain a fleet of about 55 aircraft, consisting of Embraer regional jets, Boeing 767s and 737s, and ATR turboprops. The airline is a member of the Star Alliance marketing group, and LOT serves many of its North American destinations through code- sharing with Star partners United Airlines and Air Canada. (Code- sharing allows airlines to sell tickets on one another's flights and thus extend their networks.) The Polish government owns 68% of the company. =========== R U S S I A =========== DAIRY PLANT: Creditors Must File Claims by June 17 -------------------------------------------------- The Arbitration Court of Kabardino-Balkaria commenced bankruptcy proceedings against OJSC Dairy Plant (TIN 0711014025, PSRN 1020700748276) after finding it insolvent. The case is docketed under Case No. ?20�2080/2008. Creditors have until June 17, 2009, to submit proofs of claims to: O. Kiryanov Insolvency Manager Post User Box 2924 355029 Stavropol Russia The Debtor can be reached at: OJSC Dairy Plant Malbakhova Str. 115 Nalchik Kabardino-Balkaria Russia GLAZOVSKIY WOOD: Creditors Must File Claims by May 17 ----------------------------------------------------- Creditors of LLC Glazovskiy Wood-Processing Plant (TIN 1829015120, PSRN 1041801900601) have until May 17, 2009, to submit proofs of claims to: S. Bulavin Temporary Insolvency Manager Shlyuzovaya Str. 1a Chaykovskiy 617762 Permskiy Russia The Arbitration Court of Udmurtia will convene at 1:30 p.m. on Aug. 11, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?71�1947/2009-G9. The Debtor can be reached at: LLC Glazovskiy Wood-Processing Plant Sovetskaya Str. 49 427620 Glazov Udmurtia Russia KAZANORGSINTEZ OJSC: Fitch Cuts LT Issuer Default Rating to 'C' --------------------------------------------------------------- Fitch Ratings has downgraded Tatarstan-based chemical producer OJSC Kazanorgsintez's Long-term Issuer Default Rating to 'C' from 'CC'. The Long-term IDR, Short-term IDR of 'C' and Kazanorgsintez SA's US$200m loan participating notes, which have a senior unsecured debt rating of 'C', remain on Rating Watch Negative. The Recovery Rating on the notes remains at 'RR6'. The rating actions reflect Fitch's concerns about the absence of visible progress in KOS's search for a long-term re-financing solution to meet its substantial 2009 maturities. Although demand and prices have improved slightly since Q408 for domestic producers, KOS's credit metrics remain very weak. Cash flow generation and liquidity have been insufficient to cover short-term maturities and the company is heavily reliant on short- term maturity extensions from bilateral lenders while it seeks funding alternatives. Recourses being explored by KOS, including state bank funding and/or shareholder support, have yet to materialize. The re-financing risk is compounded by a looming covenant testing deadline with respect to the US$200 million notes. As previously noted, Fitch forecasts a breach of the 6.0x leverage covenant which is due to be tested at end May 2009, upon release of the group's FYE08 IFRS audited numbers. Fitch believes the FYE08 results will reflect a material deterioration in KOS's operating cash flow generation and debt servicing capacity due to weak market conditions in H208. In the absence of viable re-financing alternatives in the next few weeks, a new covenant waiver request and/or debt restructuring negotiations with lenders appear unavoidable to stave off a default on some or all of KOS' obligations. Funding from state banks or shareholders remains a possibility. However, Fitch notes that difficult economic and financial conditions in Tatarstan could make it difficult to obtain shareholder support from either TAIF or SINEK ('BBB-'((BBB minus))/Stable), and that such support would only partially address the company's re-financing issues. Fitch will monitor and assess KOS's situation and potential debt restructuring closely. METALLURGICAL COM'L: Moody's Assigns 'E+' Fin'l Strength Rating --------------------------------------------------------------- Moody's Investors Service has assigned B3 long-term and Not Prime short-term local and foreign currency deposit ratings, and E+ bank financial strength rating to Metallurgical Commercial Bank. The outlook on all ratings is stable. At the same time, Moody's Interfax Rating Agency has assigned a Baa3.ru long-term national scale credit rating to the bank. Moscow-based Moody's Interfax is majority owned by Moody's. According to Moody's, MCB's ratings are underpinned by close cooperation with and dependence on OAO Severstal (rated Ba2, negative outlook) Russia's largest steel producer, and strong capital adequacy. However, the ratings are constrained primarily by the bank's low visibility on the market, large concentrations on both sides of the balance-sheet and a deteriorating operating environment that will stress the bank's currently modest financial performance. MCB -- ultimately controlled by Mr. Alexey Mordashov -- is heavily reliant on funding from its sister company Severstal which contributed over 80% of the bank's non-equity funding as at 31 December 2008, while close to 50% of the loan book was exposed to related parties which accounted for close to 100% of Tier 1 capital as at YE2008. MCB has adopted a strategy of diversifying its business profile by expanding regional coverage in Russia and introducing products for retail and SME, and, as part of this expansion, the bank received substantial capital -- 20% of total assets -- and accumulated sufficient liquid assets (over 60% of total assets as at YE2008) to be invested under the diversification strategy. The implementation of MCB's new strategy has slowed down due to the deteriorating operating environment, and the bank is currently building adequate infrastructure solutions; however, the accumulated capital and liquidity cushion to a certain extent mitigates risks associated with high single-name and related-party concentrations on both sides of the balance-sheet. Moody's notes that successful implementation of the strategy to diversify MCB's business away from related parties and current key customers, as well as a decline in the level of credit and customer concentration, could have positive implications for the bank's risk positioning and, thus, for its ratings, as this strategy would reduce the vulnerability of the bank's profitability and capitalization to any sharp asset quality correction. Moreover, the bank's ability to improve currently moderate financial fundamentals together with acceptable asset quality in the current stressed operating environment could, on the one hand, be positive to the ratings. On the other hand, a significant weakening of the bank's liquidity position, further increase in borrower and related-party concentrations and/or weakening profitability and capital adequacy levels would exert negative pressure on MCB's ratings, and cause material deterioration of the bank's franchise. Headquartered in the City of Cherepovets, North-West region of Russia, MCB reported total IFRS assets of RUB19 billion (US$645 million) as at December 31, 2008, and net income of RUB131 million (US$4.5 million) for 2008. OLYMPIC ZHIL: Creditors Must File Claims by May 17 -------------------------------------------------- Creditors of LLC Olympic Zhil-Stroy (TIN 2320149476, PSRN 1072320005581) (Construction) have until May 17, 2009, to submit proofs of claims to: V. Rybachenko Temporary Insolvency Manager Office 228 Armavirskaya Str. 45 Yeysk 353680 Krasnodarskiy Russia The Arbitration Court of Krasnodarskiy will convene on Aug. 17, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ? -32�3118/2009�14/95B. The Debtor can be reached at: LLC Olympic Zhil-Stroy Konstitutsii Str. 26/2 Sochi 354000 Krasnodarskiy Russia ROSSIYANKA OJSC: Creditors Must File Claims by May 17 ----------------------------------------------------- Creditors of OJSC Rossiyanka (Macaroni Factory) (TIN 2124001000, PSRN 1022100905276) have until May 17, 2009, to submit proofs of claims to: Yu. Berestnev Temporary Insolvency Manager Apt. 50 Krasnodonskaya Str. 63 443035 Samara Russia The Arbitration Court of Chuvashia will convene at 9:30 a.m. on June 9, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?79�1543/2009. The Debtor can be reached at: OJSC Rossiyanka Promyshlennaya Str. 27 Novocheboksarsk Chuvashia Russia SEV-ZAP-STROY LLC: Creditors Must File Claims by May 17 ------------------------------------------------------- Creditors of LLC Sev-Zap-Stroy (TIN 7810018545) (Construction) have until May 17, 2009, to submit proofs of claims to: A. Yenkov Temporary Insolvency Manager Office 521 Mezhevoy Kanal 5 198035 Saint-Petersburg Russia The Arbitration Court of Saint-Petersburg will convene at 10:45 a.m. on June 22, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?56�50782/2008. The Debtor can be reached at: LLC Sev-Zap-Stroy Moskovskiy Prospect 155A 196128 Saint-Petersburg Russia SHCHERBAKOVSKIY BREWERY: Creditors Must File Claims by June 17 -------------------------------------------------------------- Creditors of LLC Shcherbakovskiy Brewery have until June 17, 2009, to submit proofs of claims to: L. Zimina Insolvency Manager Apt. 33 Pionerskaya Str. 7V 454138 Chelyabinsk Russia The Arbitration Court of Chelyabinskaya will convene at 11:00 a.m. on April 28, 2009, to hear bankruptcy proceedings on the company. The case is docketed under Case No. ?76�10373/2008�48-185. The Debtor can be reached at: LLC Shcherbakovskiy Brewery KolkhoznayaStr. 1 Shcherbakovskaya Kaslinskiy 456844 Chelyabinskaya Russia STROY-BALT LLC: Creditors Must File Claims by May 17 ---------------------------------------------------- Creditors of LLC Stroy-Balt (Construction) have until May 17, 2009, to submit proofs of claims to: I. Babenko Temporary Insolvency Manager Post User Box 6 194214 Saint-Petersburg Russia The Arbitration Court of Saint-Petersburg will convene on Sept. 10, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?56�7538/2009. The Debtor can be reached at: LLC Stroy-Balt Bolshoy Sampsonievskiy prospect 60A Saint-Petersburg Russia URAL CONSTRUCTION: Creditors Must File Claims by June 17 -------------------------------------------------------- The Arbitration Court of Chelyabinskaya commenced bankruptcy proceedings against LLC Ural Construction Technologies (TIN 7450029690, PSRN 1037402814426) after finding it insolvent. The case is docketed under Case No. ?76-17100/2008-34-102. Creditors have until June 17, 2009, to submit proofs of claims to: Ye. Babanov Insolvency Manager Post User Box 12592 454080 Chelyabinsk Russia The Debtor can be reached at: LLC Ural Construction Technologies Montazhnikov Str. 12 454038 Chelyabinsk Russia YUM-CHER-MET LLC: Creditors Must File Claims by May 17 ------------------------------------------------------ Creditors of LLC Yum-Cher-Met-Samara (TIN 6319061256) (Metallurgy) have until May 17, 2009, to submit proofs of claims to: I. Slyusarenko Temporary Insolvency Manager Post User Box 39 432980 Ulyanovsk Russia The Arbitration Court of Samarskaya will convene at 2:30 p.m. on Oct. 2, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?55�3753/2009. The Debtor can be reached at: LLC Yum-Cher-Met-Samara Office 101 Molodezhnaya Str. 13/106 Samara Russia ZAURALSKIY FOUNDRY: Creditors Must File Claims by May 17 -------------------------------------------------------- Creditors of CJSC Zauralskiy Foundry (TIN 4510022665, PSRN 1074510000245) have until May 17, 2009, to submit proofs of claims to: A. Borovitchenko Temporary Insolvency Manager Post User Box 222 620141 Yekaterinburg Russia The Arbitration Court of Kurganskaya will convene at 9:30 a.m. on June 17, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?34�626/2009. The Debtor can be reached at: CJSC Zauralskiy Foundry Apt. 2 AvtozavodskayaStr. 1a 640003 Kurgan Russia * Moody's Confirms 'B3' Currency Ratings on Moscow's Oblast Region ------------------------------------------------------------------ Moody's Investors Service has confirmed the B3 foreign and local currency ratings of the Oblast (region) of Moscow. The outlook is negative. The action concludes the review of the ratings for possible downgrade originally initiated in October 2008. The negative outlook reflects the region's weak stand-alone capacity to generate additional budget revenue sufficient for servicing high direct and indirect debt payments coming due in the next 12-18 months. "Moscow Oblast's budgetary performance has been seriously impaired by a decline in tax proceeds stemming from the current recession in the local and national economies," explained Alexander Proklov, a Moscow-based Moody's Vice President-Senior Analyst and lead analyst for this issuer. Although the Oblast's government has introduced some material cuts on both the operating and capital sides of the budget, the worsening economic environment could call for additional drastic measures from the government, while the timeliness and sufficiency of possible further budget curtailments is unclear. The rating and negative outlook also underline the remaining uncertainty surrounding the Oblast's missed put option payment on LC bonds issued by the regional mortgage agency and frozen under a court ruling. "Moody's appreciates the regional government's intention to manage the issue in the near future; however, the issue remains unresolved," explained Mr. Proklov. A few companies affiliated with the Oblast also have recently failed to meet their debt obligations. The missed payments, albeit not guaranteed by the Oblast, are indicative of the region's weak financial capacity. The confirmation of the rating factors in the recent improvements in the Oblast's maturity profile, backed by material direct and indirect support from the national government. "Thanks to federal financial support the Oblast has repaid or rolled over its bond issue, bank loans and guaranteed obligations since December," said Mr. Proklov. Moody's understands that the anticipated additional federal transfers and budget loans will be vital for the Oblast to service its debt during the rest of 2009. Going forward, Moody's will continue to focus on the Oblast's liquidity profile, own-source revenue trends and the central government's willingness to continue to provide liquidity support the Oblast's debt service obligations. The ability of the regional government to manage the missed put option payment and to restructure its indirect debt exposure will also be an important rating factor in the next 12-18 months. Moscow Oblast is located in the area surrounding the City of Moscow. With 6.6 million inhabitants, it accounts for 4.5% of the total population of Russia, and its contribution to the national GDP is 4% of the total. The region posted average annual gross regional product growth of 7% in 2003-07. The last rating action was implemented on December 23, 2008, when Moody's downgraded the Oblast's foreign and local currency issuer ratings to B3 from B1. The ratings were originally placed on review for possible downgrade on October 6, 2008, and downgraded on October 30, 2008, to B1 from Ba2, but remained under review. ===================== S W I T Z E R L A N D ===================== ALECON JSC: Creditors Must File Proofs of Claim by June 2 --------------------------------------------------------- Creditors of Alecon JSC are requested to file their proofs of claim by June 2, 2009, to: Herrn Reto Mueller JSC Reto Mueller & Partner Treuhand Lilienweg 3a 5074 Eiken Switzerland The company is currently undergoing liquidation in Eiken. The decision about liquidation was accepted at a general meeting held on March 3, 2009. AB + AUF BAU: Creditors Must File Proofs of Claim by June 2 ----------------------------------------------------------- Creditors of AB + AUF Bau LLC are requested to file their proofs of claim by June 2, 2009 to: Adrian Sonderegger Liquidator Kretzgasse 22 5416 Kirchdorf AG Switzerland The company is currently undergoing liquidation in Obersiggenthal. The decision about liquidation was accepted at a general meeting held on March 6, 2009. BAUMANN KMU-TREUHAND LLC: Claims Filing Deadline is May 26 ---------------------------------------------------------- Creditors of Baumann Kmu-Treuhand LLC are requested to file their proofs of claim by May 26, 2009, to: Baumann Kmu-Treuhand LLC Burgunderstrasse 3 4562 Biberist Switzerland The company is currently undergoing liquidation in Biberist. The decision about liquidation was accepted at a general meeting held on February 25, 2009. EUROPEAN ENTERTAINMENT: Proofs of Claim Filing Deadline is May 29 ----------------------------------------------------------------- Creditors of European Entertainment Consulting LLC are requested to file their proofs of claim by May 29, 2009, to: Josef Eugster Weissbadstrasse 1 9050 Appenzell Switzerland The company is currently undergoing liquidation in Diepoldsau. The decision about liquidation was accepted at a shareholders' meeting held on June 27, 2007. FANTOP LLC: Creditors Have Until Oct. 21 to File Proofs of Claim ---------------------------------------------------------------- Creditors of Fantop LLC are requested to file their proofs of claim by October 21, 2009, to: Fantop LLC Birchwilerstrasse 24 8303 Bassersdorf Switzerland The company is currently undergoing liquidation in Bassersdorf. The decision about liquidation was accepted at a general meeting held on July 27, 2007. HOTEL ROESSLI: Claims Filing Deadline is June 9 ----------------------------------------------- Creditors of Hotel Roessli LLC are requested to file their proofs of claim by June 9, 2009, to: Gabriella Steinemann Im Buchenegg 23 8406 Winterthur Switzerland The company is currently undergoing liquidation in Zell. The decision about liquidation was accepted at a shareholders' meeting held on March 28, 2002. IBUS ZENTRALSTRASSE: Claims Filing Deadline is April 1, 2010 ------------------------------------------------------------ Creditors of Ibus Zentralstrasse JSC are requested to file their proofs of claim by April 1, 2010, to: Jost Windlin Zwicky Windlin & Partner Gartenstrasse 4 6304 Zug Switzerland The company is currently undergoing liquidation in Zollikon. The decision about liquidation was accepted at an extraordinary general meeting held on February 24, 2009. PB HAUSTECHNIK: Creditors Must File Proofs of Claim by June 2 ------------------------------------------------------------- Creditors of PB Haustechnik JSC are requested to file their proofs of claim by June 2, 2009, to: Reto-Nicola Dora Liquidator Salihalde 7 6005 Luzern Switzerland The company is currently undergoing liquidation in Lachen SZ. The decision about liquidation was accepted at the extraordinary general meeting held on February 23, 2009. PENTA CONTAINER: Creditors' Proofs of Claim Due by June 15 ----------------------------------------------------------- Creditors of Penta Container Line JSC are requested to file their proofs of claim by June 15, 2009, to: Heinz Amacker and Joerg Arnold Hauser Liquidators Wiesendamm 4 4057 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at a general meeting held on November 18, 2008. ============= U K R A I N E ============= BARREL PLUS: Creditors Must File Claims by May 10 ------------------------------------------------- Creditors of LLC Barrel Plus (code EDRPOU 33767981) have until May 10, 2009, to submit proofs of claim to: T. Gubanova Insolvency Manager B. 1 office 35 Ac. Williams Str. 81 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy proceedings against the company on March 30, 2009. The case is docketed under Case No. 32/41-09-1107. The Court is located at: The Economic Court of Odessa Shevchenko Avenue 29 65032 Odessa Ukraine The Debtor can be reached at: LLC Barrel Plus Pervomayskaya str. 56 Kominternovskoye Odessa Ukraine GRADCOMSERVICE SUBSIDIARY: Creditors Must File Claims by May 9 -------------------------------------------------------------- Creditors of Joint Stock Company Dnepropetrovsk Building Company Gradobudivelnik Subsidiary Company Gradcomservice (code EDRPOU 20270351) have until May 9, 2009, to submit proofs of claim to E. Galchenko, the company's insolvency manager. The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on March 24, 2009. The case is docketed under Case No. B24/290-08. The Court is located at: The Economic Court of Dnepropetrovsk region Kujbishev str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: Joint Stock Company Dnepropetrovsk Building Company Gradobudivelnik Subsidiary Company Gradcomservice Commissar Crylov Str. 2-a 49079 Dnepropetrovsk Ukraine GRANDSIMBUILDING LLC: Creditors Must File Claims by May 10 ---------------------------------------------------------- Creditors of LLC Grandsimbuilding (code EDRPOU 34446600) have until May 10, 2009 to submit proofs of claim to: Columbus Trade Limited Company Insolvency Manager Post Office Box 166 03087 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on Feb. 24, 2009. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Grandsimbuilding K. Marks Str. 80 Fastov 08500 Kiev Ukraine GRANITE QUARRY: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------- The Economic Court of Vinnitsa commenced bankruptcy supervision procedure on LLC Granite Quarry (code EDRPOU 31398448). The Insolvency Manager is: R. Bakhur Keletskaya Str. 106/70 Vinnitsa Ukraine The Court is located at: The Economic Court of Vinnitsa Hmelnitsky Highway 7 21100 Vinnitsa Ukraine The Debtor can be reached at: LLC Granite Quarry Mogilevka Zhmerinka District 23141 Vinnitsa Ukraine SIS LOGISTIC: Creditors Must File Claims by May 10 -------------------------------------------------- Creditors of LLC Sis Logistic (code EDRPOU 35137921) have until May 10, 2009, to submit proofs of claim to: Columbus Trade Limited Company Insolvency Manager Post Office Box 166 03087 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on Feb. 24, 2009. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Sis Logistic Nauka Avenue 119-b 03040 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== CAPITAL & REGIONAL: Auditors Express Going Concern Doubt -------------------------------------------------------- Graham Ruddick at Telegraph.co.uk reports that Capital & Regional plc said its auditors expressed doubt on the group's ability to continue as a going concern after reporting an annual pre-tax loss of GBP516.3 million. Telegraph.co.uk states the auditors' report was also unqualified, but "modified" to include a paragraph on the uncertainty surrounding the group. According to Telegraph.co.uk, the doubts are linked to the availability of funding amid dramatic falls in the values of commercial property and the danger of breaching banking covenants. The company, Telegraph.co.uk says, is close to completing a fund- raising and renegotiation of banking facilities in its Junction and X-Leisure funds, selling assets and refinancing its core lending agreement. Telegraph.co.uk recalls the company scrapped its final dividend after net asset value per share, a key measure for property companies, fell 73pc to 267p. Telegraph.co.uk discloses shares in the company have lost 90pc since December 2007. Headquartered in London, England, Capital & Regional plc -- http://www.capreg.com-- operates as a co-investing property asset manager. The Company manages property assets for funds, in which it holds a significant stake. As of December 30, 2007, it had three principal funds: The Mall, The Junction and X-Leisure. The Company's park portfolio, FIX UK, became a fund in March 2008. The Company has developed six brands, such as The Mall, which includes shopping center portfolio; The Junction, which includes retail parks portfolio; X-Leisure, which includes leisure centre portfolio, Xscape, which includes leisure destinations anchored by ski slopes and cinemas; FIX UK, which includes trade centers, and SNO!zone, which includes the ski operator at the three Xscapes. During the fiscal year ended December 30, 2007, it acquired 85.4% interest in Lauchhammer KG, 85.4% interest in Hameln KG and Taufkirchen II KG, 100.0% interest in Landmark Limited. In October 2008, it announced the completion of the sale of approximately half of its German business. DIPLOMAT EXTRUSIONS: Appoints Administrators from Tenon Recovery ---------------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint administrators of Diplomat Extrusions Ltd. on April 21, 2009. The company can be reached at: Diplomat Extrusions Ltd. Team Valley Trading Estate Gateshead Tyne & Wear NE11 0PZ England INTEMPO DIGITAL: Taps Joint Administrators from PwC ---------------------------------------------------- David Thornhill and Stephen Mark Oldfield of PricewaterhouseCoopers LLP were appointed joint administrators of Intempo Digital Ltd. on April 21, 2009. The company can be reached at: Intempo Digital Ltd. City Wharf New Bailey Street, Manchester M3 5ER England ITV PLC: Moody's Cuts Rating to 'Ba3' on Weak UK TV Ads Markets --------------------------------------------------------------- Moody's Investors Service said that it has downgraded ITV plc's senior unsecured ratings, Corporate Family Rating and Probability of Default rating, to Ba3 (from Ba2). The rating outlook for ITV is negative. The downgrade reflects the continued very weak state of the UK's TV advertising markets and is prompted by the recent announcement by ITV's board that the company has currently no plans for a rights issue. It also factors in Moody's opinion that ITV's current search for a new CEO creates incremental strategic uncertainty for the company. By excluding a near-term rights issue from its arsenal of potential measures to strengthen its balance sheet, the execution risk for ITV's strategic plans has increased in Moody's opinion. While Moody's considers SDN, which ITV has put up for sale to be an attractive asset, the agency notes that the market for asset sales remains difficult. The sale would also lose ITV a solid and dependable source of incremental revenues and profits, the agency added. ITV's estimates regarding first quarter 2009 trading suggest that negative trends continue unabated with a further sequential worsening relative to the fourth quarter of 2008 expected with both ITV and the market down by as much as ~ 17% year-on-year. Industry data for April and May indicate ongoing UK NAR decline at similar levels. ITV's board has recently agreed to executive chairman Michael Grade's request to relinquish his executive responsibilities on conclusion of the ongoing regulatory reviews (expected towards the end of 2009) and to become non- executive chairman. While the board has initiated the search for a CEO this creates some strategic uncertainty at a time when the company faces a very challenging environment. A negative outlook reflects amongst other things (i) the ongoing uncertainty about the extent of the downturn in TV advertising in 2009 and beyond (ii) execution risks on the company's envisaged asset sales and (iii) a degree of management uncertainty as the company conducts the search for a new chief executive. Nevertheless the Ba3 rating remains supported by the still considerable strength of ITV's broadcasting franchise, its well established programming operations and the positive impact of the company's efforts to compensate for the decline in ITV1's NAR, by developing the share of audience and therefore NAR of a broader family of digital channels. Moody's also notes that recent regulatory developments suggest that there might be some easing of the burden for ITV as the CRR and public service reviews are expected to close by 2009 year-end and that ITV is focused towards implementing a number of additional initiatives to combat the effects of top line pressures. Moody's regards ITV's liquidity profile as sufficient for its current needs. As of December 31, 2008, the company had cash and cash equivalents of GBP446 million (excluding certain restricted and unavailable cash amounts totalling GBP170 million). During the first quarter of 2009, ITV also drew down GBP50 million under a new ten-year loan and GBP125 million under a new five-year facility, which together with cash on hand allowed the company to repay a GBP250 million bond that matured in March 2009 and to make a GBP50 million final payment in respect of the earn-out relating to the Friends Reunited acquisition in 2005. The remaining cash on hand together with a committed GBP75 million, which the company expects to utilize during 2009 and a further GBP58 million financing ITV has agreed terms for should allow the company to satisfy its near-term operational liquidity needs. However, Moody's will carefully monitor developments during 2009 and would expect ITV to underpin its liquidity position further when possible, e.g. from asset sales such as the proposed disposal of SDN. The agency notes that ITV has now no material scheduled debt maturity before October 2011. While Moody's believes that ITV will not contemplate any material acquisitions in the near-term, Moody's would expect any such transaction to be funded from the proceeds of asset or equity sales. Moody's has excluded the company's GBP450 million Revolving Credit Facility (due June 2011) from its liquidity considerations as the company is unlikely to be in compliance with the financial covenants for the facility. Ratings downgraded are: ITV's EMTN program to Ba3 (from Ba2), long-term debt issues under the program falling due 2011, 2015 and 2017 to Ba3 (from Ba2) as well as ITV's CFR and PDR to Ba3 (from Ba2). The last rating action for ITV was on March 6, 2009, when Moody's downgraded the company's senior unsecured ratings to Ba2 (from Ba1). The rating outlook was maintained as negative. Headquartered in London, England, ITV plc is the leading owner of channel 3 franchises in the UK free-to-air TV market, and generated turnover of just over GBP2 billion in the year to December 2008. J. MCINTYRE LTD: Taps Joint Administrators from Tenon Recovery -------------------------------------------------------------- Patrick B. Ellward and Dilip K. Dattani of Tenon Recovery were appointed joint administrators of J. Mcintyre (Machinery) Ltd. on April 22, 2009. The company can be reached through Tenon Recovery at: The Poynt 45 Wollaton Street Nottingham NG1 5FW England JJB SPORTS: Creditors Back CVA Proposal; Avoids Administration -------------------------------------------------------------- BBC News reports JJB Sports plc has avoided going into administration after creditors and landlords on Monday voted overwhelmingly for a company voluntary agreement that could secure the company's future, along with almost 12,000 jobs. According to BBC, the deal could settle debts on 140 closed stores and allow the retailer to pay monthly, instead of quarterly, rent on its remaining 250 stores. The CVA, BBC says, will now be lodged with the courts and, if there is no successful challenge, is expected to become effective at the end of May. Richard Fleming, UK Head of Restructuring at KPMG and Supervisor of the CVA, said in a statement: "The CVA agreement is ground- breaking and shows that an innovative approach to tackling the problems faced by many companies in the harsh economic climate can ensure the company continues to trade and, in this case, protect nearly 12,000 jobs. The meeting itself was a resounding success with 99% of creditors voting in favor. "The CVA process can be compared to aspects of Chapter 11, the US insolvency regime, which seeks to protect the legal entity. Indeed the recent Budget announcement on insolvency reform shows a growing sense that the UK system should do more to protect the legal entity of a company by offering more pre-administration options. Administration, which, while an essential tool in the restructuring kit, should be viewed as the option of last resort." In the same statement, Brian Green, restructuring partner at KPMG and Nominee of the CVA, added: "The clear objective of the CVA is to ensure that the company survives as a going concern. The return to landlords of the unoccupied stores under the CVA is significantly better than it would be under the alternative of administration. "Unlike any previous CVA proposal, there are no major changes to the terms of the open store leases aside from a temporary amendment for rent to be paid monthly over a 12 month period starting from the next quarter date. Landlords of closed stores will share in a pot of GBP10 million which, on average, should provide a return in excess of six months rent. BBC recalls JJB, which placed two of its subsidiaries -- Original Shoe Company and Qube -- into administration earlier this year, was forced to sell its gym business in March in order to raise cash. Fitness Club On March 27, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported that JJB sold its fitness club business to the group's founder Dave Whelan for GBP83.4 million or US$121.4 million. The report related JJB said proceeds of the sale will be used to reduce its debt and eventually to fund its working capital requirements. The company, the report disclosed, owes about GBP60 million to its lenders, Barclays, Lloyds, formerly HBOS, and Kaupthing Singer & Friedlander. JJB, the report stated, also secured an agreement from its lenders to extend standstill arrangements on its loans until it can strike a deal with the landlords of its closed stores. JJB will secure a short term GBP25 million term loan with Barclays and a medium term GBP25 million working capital facility with Lloyds if it successfully reach a CVA deal with landlords, the report said. About JJB Sports Headquartered in Wigan, England, JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is engaged in the retailing of sportswear and sporting equipment. The company also operates a chain of fitness clubs, which has a smaller number of indoor soccer centers attached to them. It also operates a television broadcasting and marketing business, which specializes in the marketing of golf products and fitness equipment through Sky Television. LLOYDS BANKING: To Cut 985 Jobs at Bank of Scotland Dealer Finance ------------------------------------------------------------------ BBC News reports that Lloyds Banking Group Plc will cut 985 jobs at Bank of Scotland Dealer Finance in the next two years after a review carried out last year by Bank of Scotland found the business was "no longer financially viable". BBC discloses Lloyds said 200 jobs in Speke, Merseyside, could be affected, along with 340 jobs in Chester. BBC notes these are the first major job cuts resulting from the merger of Halifax Bank of Scotland and Lloyds TSB late last year. Lloyds said it hopes as many jobs as possible will go by natural turnover, BBC relates. BBC states the banking group stressed compulsory redundancies would be a "last resort". Lloyds, as cited by BBC, said Bank of Scotland Dealer Finance will not give out any new loans after September but will continue to serve existing customers through its Black Horse Motor Finance brand. State Guarantees As reported in the Troubled Company Reporter-Europe on March 9, 2009, Bloomberg News said Lloyds Banking Group obtained GBP260 billion or US$367 billion in state guarantees increasing the U.K. government's stake in the bank to as much as 75 percent from 43 percent. Under the agreement, Lloyds will pay GBP15.6 billion for asset protection, or 5.2 percent of the insured assets, in the form of non-voting shares, the report said citing the bank in a statement. Lloyds also agreed to increase lending to businesses and homeowners by GBP28 billion over the next 24 months, the report related. In return, the report disclosed Lloyds will get government insurance for GBP74 billion of residential mortgages, GBP18 billion of unsecured personal loans, GBP151 billion of corporate and commercial loans and GBP17 billion of treasury assets. The report stated Lloyds will be responsible for the initial GBP25 billion of losses on the insured assets and will cover 10 percent of any additional losses, with the Treasury responsible for the rest. The government will also underwrite a GBP4 billion share sale and convert existing preference shares into equity, the report disclosed. According to Bloomberg News, about 83 percent of the assets Lloyds is insuring came from HBOS Plc. Lloyds acquired HBOS's deteriorating quality of loans when it bought the firm in a government-brokered deal, the report said. The report recalled in September, Lloyds agreed to buy HBOS for about GBP7.7 billion as the government sought to prevent HBOS from collapsing after credit markets froze. In February, HBOS posted a pretax loss of GBP7.5 billion, the report noted. About Lloyds Banking Group PLC Lloyds Banking Group PLC (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is a United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the Company's specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the Company acquired HBOS plc. The Troubled Company Reporter-Europe reported on February 19, 2009, that Fitch Ratings affirmed the Long-term and Short-term Issuer Default Ratings of the Lloyds Banking Group plc and its subsidiaries, Lloyds TSB bank plc, HBOS plc and Bank of Scotland plc at 'AA-' (AA minus) and 'F1+,' respectively. The agency downgraded LBG's, LTSB's and BOS's Individual ratings to 'C/D' from 'B/C', 'B/C' from 'B' and 'C/D' from 'C' respectively. All three Individual ratings were placed on Rating Watch Negative. The downgrades on the Individual ratings reflect Fitch's concern about the significant deterioration in certain portfolios within BOS's corporate banking and treasury units and higher risk parts of its residential mortgage portfolio, together with the agency's expectation that problems are likely to continue to increase in a weakening operating environment, severely challenging profitability and weakening capitalization over the coming 12-18 months. The Rating Watch Negative on the Individual ratings reflects ongoing uncertainty around these exposures and group capitalization. LUDGATE FUNDING: S&P Junks Rating on Class E Notes -------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on the series 2006-FF1 class E and S notes issued by Ludgate Funding PLC. S&P also placed the class Ba, Bb, C, and D notes on CreditWatch negative and affirmed the class A2a and A2b notes and the MERCs. The rating actions follow a full credit and cash flow analysis of the most recent loan-level information. S&P understands that the reserve fund has been fully drawn and on the March interest payment date, GBP684,658 was drawn from the liquidity facility to pay interest due on the notes. This is primarily driven by the unhedged mismatch between the Bank of England base rate received from the loans and three-month LIBOR due on the notes. S&P factored in this potential mismatch in S&P's rating analysis at closing by looking at the historical difference between LIBOR and BBR and modeling the additional risk in S&P's cash flow analysis. S&P has incorporated the current dislocation between these interest rates into S&P's current cash flow analysis. The recent BBR reductions to 0.5% will lower the monthly payments for the borrowers, with the loans referencing this rate from April 1. However, LIBOR reset at 2.03% for this quarter so the current dislocation is 153 basis points, which places further pressure on the cash flows. The outstanding balance on the class E principal deficiency ledger is currently GBP396,060 as per the March 2009 investor report. As defined in the transaction documentation, the liquidity facility cannot be used to pay class E note interest when this balance is greater than or equal to 50% of the outstanding class balance (50% of the class E balance is GBP1.125 million). Cumulative principal losses are currently GBP627,777, representing 0.17% of the original balance as per the March 2009 investor report (the principal loss in the last quarter was GBP177,563). In S&P's opinion, U.K. house prices are likely to continue falling in 2009, and S&P anticipate higher loss severities in all U.K. residential mortgage-backed securities transactions. S&P will continue to monitor the performance of this transaction using the most recent loan-level data for full credit and cash flow analyses. S&P will also focus on the BBR/LIBOR dislocation and changes to collection rates. Ratings List Ratings Lowered Ludgate Funding PLC GBP271.8 Million and EUR156.4 Million Mortgage-Backed Floating-Rate Notes Series 2006-FF1 Rating ------ Class To From ----- -- ---- E CCC- B S CCC- CCC Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ba A+/Watch Neg A+ Bb A+/Watch Neg A+ C BBB/Watch Neg BBB D BB/Watch Neg BB Ratings Affirmed Class Rating ----- ------ A2a AAA A2b AAA MERCs AAA PREMIER ELECTRICAL: Appoints Administrators from Tenon Recovery --------------------------------------------------------------- T. J. Dolder and C. D. Wilson of Tenon Recovery were appointed joint administrators of Premier Electrical Supplies (UK) Ltd. on April 17, 2009. The company can be reached at: Premier Electrical Supplies (UK) Ltd. 99 Canterbury Road Whitstable Kent CT5 4HG England RIVERDANCE GROUP: Taps Joint Administrators from Grant Thornton --------------------------------------------------------------- Martin Gilbert Ellis and David John Dunckley of Grant Thornton UK LLP were appointed joint administrators of Riverdance Group Ltd. on April 8, 2009. The company can be reached at: Riverdance Group Ltd. Cleeve Court Cleeve Road Leatherhead Surrey KT22 7SD England RMAC SECURITIES: S&P Puts 'BB' Rating on B1C Notes on Neg. Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on the class M1a, M1c, M2c, and B1c notes series 2006-NS3 issued by RMAC Securities No. 1 PLC. The ratings on all other classes in this transaction remain unaffected. These rating actions follow S&P's credit analyses using the most recent loan-level information S&P has received and a review of the March 2009 investor report. The report shows a continued deterioration in pool performance as demonstrated by reserve fund draws and loan losses, which are higher than S&P's nonconforming index losses at a similar level of transaction seasoning. The reserve has been drawn on each quarter since September 2007 and is currently 0.07% of the outstanding note balance. Of the mortgages in the portfolio, 36.18% are currently in arrears. Of the portfolio, 22.32% is more than 90 days in arrears but not in repossession. Principal losses in the interest payment period from December 2008 to March 2009 were 0.46% of the original collateral balance and the cumulative losses since closing are 1.26% of the original collateral balance. The weighted-average loss severity since closing is 25.75%. S&P will look to resolve this CreditWatch placement when S&P perform a cash flow analysis. Ratings List RMAC Securities No.1 PLC GBP389.5 Million, EUR200 Million, and US$421.6 Million Mortgage-Backed Floating-Rate Notes Series 2006-NS3 Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- M1a AA/Watch Neg AA M1c AA/Watch Neg AA M2c A-/Watch Neg A- B1c BB/Watch Neg BB ROYAL BANK: Expects GBP4.5BB Profit From Bond Buyback Program ------------------------------------------------------------- Peter MacMahon and Scott Reid at the Scotsman report that the Royal Bank of Scotland Group plc told the stock market Friday that it expected to make a GBP4.5 billion profit from a three-part bond buyback program. According to the report, the bank will book the gain in its first- half results, due August 7. The buyback offer, which is part of the three to five-year plan to rebuild the bank, has been put in place by Stephen Hester, who took over from former chief executive Sir Fred Goodwin, the report says. The report discloses that according to RBS, it could add 0.7-0.8 percentage points to its core Tier 1 capital adequacy ratio, which was estimated at 12.4 percent after the bank reduced its risk under the UK government's asset insurance scheme. The report relates in its statement, made an hour before the market shut for the weekend, the bank said 61 percent of its investors chose to take up the offer to swap GBP5.75 billion Tier 1 and Upper Tier 2 bonds for senior unsecured bonds. The bank, as cited in the report, said 64 per cent of bondholders had opted to participate in its buyback offer for US$750 million and 3.25 billion worth of Tier 1 and Upper Tier 2 bonds. UK Government's Asset Insurance Scheme The Troubled Company Reporter-Europe on March 2, 2009, citing The Wall Street Journal, reported that the U.K. government agreed to provide RBS with as much as GBP25.5 billion (US$36.64 billion) in capital and insure GBP300 billion of the bank's assets. The recent help given to RBS is part of U.K.'s GBP500 billion bank- insurance plan announced in January. Under the funding agreement, the Journal said RBS will pay a fee of GBP6.5 billion to participate in the insurance plan. The bank will also absorb the first GBP20 billion in losses on the GBP300 billion asset pool before the insurance kicks in, and will be responsible for 10% of subsequent losses, the Journal disclosed. RBS will also pay the insurance fee, and raise an additional GBP13 billion in fresh capital, by issuing special "B" shares to the government, according to the Journal. 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. * UK: Gov't to Consult Two Proposed Changes to Insolvency Laws -------------------------------------------------------------- Large and medium-sized companies facing difficulties could receive additional help under proposed changes to insolvency laws announced in the Budget last week. The Insolvency Service will consult on two important proposals: * Giving large and medium-sized companies breathing space while they seek legally binding Company Voluntary Agreements (CVAs) with their creditors, without first having to place their companies into administration. * Giving absolute priority to new money lent to companies in CVA or administration. This would make it more attractive to lend to companies in this situation, allowing them to access the funding they need to get back on their feet and stay in business. Business Minister, Pat McFadden said: "The Government is focused on helping companies in difficulty. Giving more businesses extra breathing space will encourage company rescues. It could make all the difference between a firm staying in business or entering insolvency -- preventing the knock-on effects that failures have on employees, directors and creditors." Currently only small companies facing financial difficulty are able to obtain a moratorium on creditor action while seeking agreement with their creditors to deal with their debts. The new proposals would extend this to larger businesses. The proposed changes will help to give all companies access to the new funds they need to get back on their feet. Investors who put new money into a company in either a CVA or administration would be at the top of the list for getting money back if the company eventually fails. Such a measure would make it more attractive to lend to such companies, allowing them to access funding they need when they need it most. In addition, the Insolvency Service announced that this summer will see the publication of the first of a series of regular reports on the monitoring of the operation of pre-pack sales. The Statement of Insolvency Practice 16 issued earlier this year requires administrators to provide creditors with detailed reports explaining their decisions for a pre-pack administration as soon as they are appointed. Closer scrutiny of the reports by The Insolvency Service is designed to ensure that creditors are not being treated unfairly through the abuse of pre-pack sales. * Begbies Traynor Says UK Recession Continues Unabated ------------------------------------------------------ Begbies Traynor's Red Flag Alert shows all sectors to be suffering from substantial growth of both "Significant" and "Critical" adverse actions, compared to a year ago. Some good news as quarter on quarter change in adverse signals is stabilizing in some sectors. * 87% increase in companies with critical problems and 60% increase in companies with significant problems in Q1 2009 compared to Q1 2008 * Financial Services, Property Services, and Construction sectors are all showing over 100% year on year increases in critical problems Year on Year Begbies Traynor, the UK's leading business rescue, recovery and restructuring specialist, on Friday revealed that the UK's recession continues unabated. This is according to the latest findings of its Red Flag A!ert system which monitors early warning signs of corporate stress. The statistics for the first quarter of 2009 show all sectors to be suffering from substantial growth of both Significant and Critical adverse actions, in comparison to the same period a year ago. With regard to industry sectors the Red Flag statistics indicate that Property Services, Construction and Financial Services have been hardest hit when compared to Q1 2008. Other major sector casualties include Retail, Advertising, Automotive, Transport & Communications, and Manufacturing. The total number of companies showing signs of stress (both significant and critical problems) has risen to 84,648 in March 2009 compared to 53,240 a year ago, an increase of 59%. Quarter on Quarter It is evident, however, from the latest results that the quarter on quarter rate of growth of adverse signals is slowing in some sectors. IT and Financial Services both even show slight declines in the number of companies with critical problems compared to Q4 2008 and other sectors such as Print & Packaging, Manufacturing, Professional Services and Transport & Communications show increases of less than 5%. Ric Traynor, Executive Chairman of Begbies Traynor Group, commented: "The findings of our latest Red Flag Alert echo the findings of other recent surveys, showing as they do increasing business failures. "The reduced rate of decline in quarter on quarter adverse actions is some good news; however, this is not the same as a recovery. Last week's Budget tax increases and public spending cuts are unlikely to make life any easier for struggling companies. "Regrettably experience tells us that company and personal insolvencies, like unemployment, are a lagging indicator, and are therefore likely to continue to rise through the recession. About Begbies Traynor Begbies Traynor -- http://www.begbies-traynor.com/-- is a UK business rescue, recovery and restructuring specialist, providing a partner-led service to stakeholders in troubled businesses. * PwC Expects Room Rate Declines in London and Regional Hotels -------------------------------------------------------------- Early indicators show UK hotels, of all shapes and sizes are in for a rough ride over 2009, with nearly 200 per cent more hotel companies becoming insolvent in Q1 2009 than in the same quarter last year, according to PricewaterhouseCoopers LLP. PwC said up to this point it has mainly seen smaller, standalone hotels, with only a few exceptions of hotel companies where debt levels have become unsustainable as demand and profits have declined. However, new PricewaterhouseCoopers LLP insolvency statistics show the quarter to quarter rate has slowed with a 20 per cent increase in insolvencies from Q4 2008 to Q1 2009 -- the highest increase being over 100 per cent from September to December 2008. Stephen Broome, director, PricewaterhouseCoopers LLP said: "Many hotel groups have seen the benefit of December trading which, despite the downturn, will still have provided some Christmas cheer. With the quieter months of January and February now a distant memory many UK hotels are hopeful of survival through to the summer when all revenues are pinned on the revival of demand from domestic holiday visitors." However, following a PwC consumer poll taken over the Easter holidays it is clear that consumers are looking to other forms of accommodation to save funds. The survey poll shows a 12 per cent rise in those choosing to go camping, caravanning or to a holiday park, despite the April showers. Nearly a third of all UK holidaymakers chose this option, closing the gap on rival hotels and B&Bs. In 2008, 35 per cent of those going away over Easter opted to shell out for a hotel room, a year later this number has dropped to 31 per cent, while the popularity of campsites, caravans and holiday parks has surged from 17 per cent to 29pc. "It is likely that many of those who remain in the UK over the summer will opt for self-catering, camping, caravanning, holiday parks and visiting relatives, rather than staying in hotels. While current exchange rates should encourage travellers from abroad to visit and may mitigate some of the effects of a post budget fall in consumer confidence, the prospect of a warm and sunny British summer is unlikely to provide much shelter from the storm for hotels, whatever the weather," Mr. Broome added. London hotels have performed as expected and in line with the PwC baseline scenario (14.2 per cent reduction) contained in the PwC Hospitality Directions forecast released in March this year. Regional hotel room rates have fallen more dramatically than was expected (by 11.9 per cent compared to a forecast of 8.7 per cent). This is thought to be the result of a reduction in corporate demand being substituted by lower rate leisure business. "Given the slow and rocky recovery ahead we therefore expect to see further room rate declines in both London and regional hotels through until autumn at least. Discounts will not drive additional demand, and are unlikely to persuade those who aren't planning to travel to leave their homes, or indeed their caravans, but it will help attract those who are," Mr. Broome concluded. About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. ********* 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 * * *