/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090511.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, May 11, 2009, Vol. 10, No. 91 Headlines A U S T R I A A.HOCH GMBH: Claims Registration Period Ends May 13 AHLENBEEK GMBH: Claims Registration Period Ends May 13 BTV GMBH: Claims Registration Period Ends May 13 MY HOME: Claims Registration Period Ends May 15 F R A N C E GENCORP INC: Lenders Agree to Place French Unit in Bankruptcy IXIS CORPORATE: Moody's Withdraws 'Ca' Rating on EUR169 Mil. Notes THOMSON SA: S&P Lowers Corporate Credit Ratings to 'SD' G E R M A N Y AUTO STAR: Claims Registration Period Ends May 22 BAYERNLB: Mulls Sale of German and Hungarian Units BLUEBONNET FINANCE: Fitch Cuts Ratings Class D & E Notes to Low-B COMMERZBANK AG: Posts US$1.15-Bln 1Q Loss, EU Approves Bailout FRESENIUS SE: S&P Changes Outlook to Stable; Keeps 'BB' Rating HIGH TECH: Claims Registration Period Ends July 9 MALER SERVICE: Claims Registration Period Ends June 5 MEXX BODY: Claims Registration Period Ends June 5 MR BAUSTROM: Claims Registration Period Ends June 22 PREPS 2005-2: Moody's Junks Ratings on Two Classes of Notes SCHIESSER LIFESTYLE: Claims Registration Period Ends June 5 SCHUMAG HOLDING: Claims Registration Period Ends June 18 SKY & FLY: Claims Registration Period Ends July 2 STADER INDUSTRIESERVICE: Claims Registration Period Ends June 10 TONOVA GMBH: Claims Registration Period Ends May 28 TREOFAN HOLDINGS: Moody's Affirms 'Caa2' Corporate Family Rating VITAL WARENHANDELSGESELLSCHAFT: Claims Registration Ends June 19 I R E L A N D MAGI FUNDING: Moody's Puts BB Rating on Class K Notes on Watch Neg I T A L Y CHRYSLER LLC: Michigan Says Fiat Sale Does Not Protect Workers FIAT SPA: CEO Plans to Use Existing Platforms for New Cars UBS AG: Italian Prosecutors Sue Firm on Derivatives Contracts K Y R G Y Z S T A N COMMUNICATION SERVICE: Creditors Must File Claims by May 29 MEG ALLIANCE: Creditors Must File Claims by May 29 PROD IMPORT: Creditors Must File Claims by May 29 N E T H E R L A N D S CREDIT EUROPE: Moody's Comments on Recent Deposit Rating Downgrade N O R W A Y STOREBRAND LIVSFORSIKRING: Moody's Cuts Junior Debt Ratings to Ba1 R U S S I A BANK SOYUZ: S&P Puts 'B-' Rating on Developing CreditWatch CENTER-INVEST BANK: Moody's Affirms 'E+' Financial Strength Rating CONSTRUCTION AND TECHNOLOGY: Creditors Must File Claims by May 24 DON-STROY LLC: Creditors Must File Claims by May 24 EVRAZ GROUP: Fitch Puts 'BB' Long-Term IDR on Watch Negative SPETS-STROY-RESURS LLC: Creditors Must File Claims by May 24 TMK OAO: Moody's Downgrades Corporate Family Rating to 'B1' S L O V E N I A ISTRABENZ: Court Postpones Decision on Bawag Receivership Motion S P A I N SANTANDER EMPRESAS: S&P Adjusts Rating on Class E Notes to 'B-' S W I T Z E R L A N D BADR AUTOMOBILE: Creditors Must File Proofs of Claim by May 14 BERNARD L MADOFF: Irving Picard Subpoenas UBS AG on Accounts BIOTIKI SCHWEIZ: Claims Filing Deadline is May 14 CASINO RESTAURANT: Creditors' Proofs of Claim Due on May 14 HOUSE SERVICE: Claims Filing Deadline is May 14 M. + F. TSCHANZ: Creditors Must File Proofs of Claim by May 14 SCHOETTLI INTERMETALL: Proof of Claim Filing Deadline is May 14 U K R A I N E AT M-TRADING LLC: Creditors Must File Claims by May 15 BAGET-B LLC: Creditors Must File Claims by May 16 DNEPROSHYNA OJSC Creditors Must File Claims by May 16 DNEPROYEL LLC: Creditors Must File Claims by May 16 POPOVKA LLC: Creditors Must File Claims by May 16 U N I T E D K I N G D O M ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'B' BUSINESS MORTGAGE: Fitch Junks Ratings on Three Classes of Notes C.P.S. LAND: Appoints Liquidator from Tenon Recovery CASTLELEIGH HOLDINGS: Placed Into Administration CHERRY MOVE: Appoints Joint Liquidators from Tenon Recovery CNP: Placed Into Administration; Buyer Sought for Business CORNERSTONE TITAN: Fitch Junks Ratings on Three Classes of Notes DIGITAL RIGHTS: Taps Joint Liquidators from Tenon Recovery ELLIOT HOLDINGS: Taps Joint Liquidators from Tenon Recovery ELISION HEALTH: Appoints Liquidators from Smith & Williamson FLEET STREET: Fitch Affirms Rating on Class E Notes at 'BB+' G A DEVELOPMENT: Calls in Liquidator from Tenon Recovery GEMINI PLC: Fitch Corrects May 6 Rating Press Release IMPACT STAFF: Appoints Joint Liquidators from Tenon Recovery LANDMARK MORTGAGE: S&P Puts 'BB'-Rated Class D Notes on Neg. Watch NCS SUPPLIES: Appoints Joint Liquidators from Grant Thornton PANORAMIC PRESENTATIONS: Brings in Liquidators from Tenon Recovery PREMIUM 1ST: Taps Liquidator from Grant Thornton TAYLOR WIMPEY: Raising GBP510 Million to Cut Debt TRIANGLE COMPUTER: Brings in Joint Liquidators from Tenon Recovery VEDANTA RESOURCES: Pre-Tax Profits for Yr. Ended March 31 Down 57% * Fitch Says UK Homebuilding Sector May Be Slower to Recover * UK: Insolvencies in Advertising Sector Up 62% in First Qtr. 2009 * UK Hotel Sector Continues to Suffer in 1Q09, Deloitte Says * BOND PRICING: For the Week May 4 to May 8, 2009 ********* ============= A U S T R I A ============= A.HOCH GMBH: Claims Registration Period Ends May 13 --------------------------------------------------- Creditors owed money by A.Hoch GmbH have until May 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Beate Holper Gonzagagasse 15 1010 Vienna Austria Tel: 01/533 28 55 Fax: 01/533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on May 27, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria AHLENBEEK GMBH: Claims Registration Period Ends May 13 ------------------------------------------------------ Creditors owed money by Ahlenbeek GmbH have until May 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 01/533 52 72 Fax: 01/ 533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on May 27, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria BTV GMBH: Claims Registration Period Ends May 13 ------------------------------------------------ Creditors owed money by BTV GmbH have until May 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 01/877 33 30 Serie Fax: 01(877 33 30 33 E-mail: office@ra-stampfer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on May 27, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria MY HOME: Claims Registration Period Ends May 15 ----------------------------------------------- Creditors owed money by My home GmbH 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 Fax: 0316/825580-10 E-mail: office@dlaska.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:50 p.m. on May 28, 2009, for the examination of claims at the Civil Court of Graz. =========== F R A N C E =========== GENCORP INC: Lenders Agree to Place French Unit in Bankruptcy ------------------------------------------------------------- GenCorp Inc. entered into the First Amendment and Consent to Credit Agreement to the Company's existing Amended and Restated Credit Agreement, originally entered into as of June 21, 2007, by and among the Company, as borrower, the subsidiaries of the Company from time to time party thereto, as guarantors, the lenders from time to time party thereto and Wachovia Bank, National Association, as administrative agent for the Lenders. Snappon SA, a French subsidiary of the Company, that is neither a Credit Party nor Significant Subsidiary under the Credit Agreement and has no operations, has had legal judgments rendered against it under French law, aggregating approximately US$4.0 million related to wrongful discharge claims by certain former employees of Snappon. The Amendment provides for, among other things, the consent of the Required Lenders to allow Snappon to commence voluntary bankruptcy, insolvency or similar proceedings or to allow for an involuntary bankruptcy, insolvency or similar proceedings against Snappon. Under the Amendment, the Required Lenders agreed (i) that an event of default will not be triggered with respect to the legal judgments rendered against Snappon, unless the judgments equal or exceed US$10.0 million and shall not have been paid and satisfied, vacated, discharged, stayed or bonded pending appeal within thirty (30) days from the entry thereof and (ii) to consent to the commencement of voluntary or involuntary bankruptcy, insolvency or similar proceedings with respect to Snappon and that any such proceeding would not constitute an Event of Default under the Credit Agreement. The full-text copy of the Amendment and Consent to Credit Agreement is available for free at: http://ResearchArchives.com/t/s?3c9d Additionally, the Company agreed to temporarily reduce its borrowing availability under the Revolving Loan from US$80.0 million to US$60.0 million commencing on the Effective Date and ending on the earlier of (i) the date on which an amendment that permits the renewal, refinancing or extension of the 4.00% Convertible Notes has been approved by the Required Lenders and (ii) the date on which the Company redeems the 4.00% Convertible Notes in accordance with the terms of the Credit Agreement. About GenCorp Headquartered in Rancho Cordova, Calif., GenCorp Inc. (NYSE: GY) -- http://www.GenCorp.com/-- is a leading technology-based manufacturer of aerospace and defense products and systems with a real estate segment that includes activities related to the entitlement, sale and leasing of the company's excess real estate assets. As reported in the Troubled Company Reporter on April 2, 2009, Standard & Poor's Ratings Services said it lowered its ratings on Sacramento-based GenCorp Inc., including lowering the corporate credit rating to 'CCC+' from 'B+'. The outlook is developing. "The downgrade reflects significant uncertainty about GenCorp's ability to pay off or refinance US$125 million of convertible notes if put to the company in January 2010," said Standard & Poor's credit analyst Christopher DeNicolo. As of Feb. 28, 2009, the firm had US$80 million of cash and an undrawn US$80 million revolving credit facility. However, the revolver cannot be used to repay the notes and the credit facility will have to be amended, likely resulting in much higher interest costs. "In addition," added Mr. DeNicolo, "the current trading price of the notes-around 70 cents on the dollar as of the date of this report- increases the likelihood that the company could enter into a distressed exchange to address the refinancing." IXIS CORPORATE: Moody's Withdraws 'Ca' Rating on EUR169 Mil. Notes ------------------------------------------------------------------ Moody's Investors Service has withdrawn its rating of one class of notes issued by IXIS Corporate and Investment Bank. Moody's believes it lacks adequate information to maintain a rating. The rating action is: IXIS Corporate and Investment Bank: (1) Series 2495 EUR169,000,000 Total Return Notes due 2013 linked to an amount of US$218,900,000 of Class S Floating Rate Notes issued by Tensyr Limited -- Current Rating: WR -- Prior Rating: Ca -- Prior Rating Date: 18 December 2008, downgraded to Ca from Aaa THOMSON SA: S&P Lowers Corporate Credit Ratings to 'SD' ------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its long- and short-term corporate credit ratings on French technology group Thomson S.A. to 'SD' (selective default) from 'CC' and 'C', respectively. At the same time, Standard & Poor's affirmed its 'CC' rating on Thomson's EUR1.75 billion senior unsecured bank loan and its 'C' rating on Thomson's junior subordinated perpetual notes. The recovery ratings on the above bank loan and subordinated debt are unchanged, at '3' and '6', respectively, indicating S&P's expectation of meaningful (50%-70%) and negligible (0%-10%) recovery for unsecured and subordinated creditors (respectively) in the event of a payment default. The downgrade follows Thomson's agreement with its senior creditors, announced on April 28, 2009, to defer until June 16, 2009, the repayment of about US$92.5 million of principal debt due May 17, 2009, under its private placements (which are not rated). "Under our methodology, given that Thomson has not offered sufficient compensation for this deferral, the extension of the debt maturity is tantamount to a restructuring below par by a distressed issuer, and thus to a default," said Standard & Poor's credit analyst Leandro de Torres Zabala. On the same date, Thomson also announced that it had obtained waivers from its senior creditors until June 16, 2009 (the scheduled date of its Annual General Meeting) for the covenants breached under its senior financial debt (including the privately placed debt and senior unsecured bank loan, for a total of EUR2.9 billion). During this period, the group will continue discussions (ongoing since February 2009) with its senior creditors on the restructuring of its balance sheet. Under the waivers, the senior creditors -- representing substantially all of Thomson's unsubordinated financial debt -- have agreed not to accelerate the debt at any time prior to June 16 based on the breaches of the two financial covenants and of limitations set forth in the privately placed notes and the senior unsecured bank loan. S&P plans to reassess Thomson's capital structure at the end of the waiver period in June. "We could lower the long- and short-term corporate credit ratings on Thomson to 'D' (default) if the group's senior creditors accelerate the debt and the group is unable to repay, or if Thomson renegotiates the original terms under its senior unsecured bank loan, undertakes a distressed exchange offer for all of its debt, or files for creditor protection," said Mr. de Torres. If and when Thomson were to then emerge from bankruptcy or another form of reorganization, Standard & Poor's would reassess the ratings and the factors behind them, taking into account what precipitated the default and also any gains achieved through the reorganization process. ============= G E R M A N Y ============= AUTO STAR: Claims Registration Period Ends May 22 ------------------------------------------------- Creditors of Auto Star Wash Kiel GmbH have until May 22, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Kiel Deliusstr. 22 Kiel 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: Beate Thompson Wil-lestr. 3 24103 Kiel Germany Tel. 0431/888970 Fax: 0431/8889788 The court opened bankruptcy proceedings against the company on April 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto Star Wash Kiel GmbH Von-der-Tann-Str. 21 24114 Kiel Germany Attn: Anita Wenzel, Manager Taubertstr. 31 a 14193 Berlin Germany BAYERNLB: Mulls Sale of German and Hungarian Units -------------------------------------------------- Chris Reiter at Bloomberg News reports newspaper Sueddeutsche Zeitung said Bayerische Landesbank a.k.a BayernLB plans to sell its SaarLB and GWB Immobilien AG units in Germany and the LBLux division in Luxembourg, reducing the state-owned bank's total assets to EUR271 million (US$362.9 million) by 2013 from EUR485 million in 2008. The report relates the newspaper said the bank is also considering selling Hungary's MKB Bank and Hypo Group Alpe Adria in Austria by 2013 or 2014. Meanwhile, Patricia Uhlig and John O'Donnell at Reuters report that experts believe that Germany's seven state-backed regional lenders, or Landesbanks, will rush to join the queue to use a government home for unwanted loans and investments. The report states that the accident-prone Landesbanks -- such as BayernLB -- have long been a thorn in the side of the community savings banks, which typically own them with the regional government. Bayerische Landesbank a.k.a BayernLB --- http://www.bayernlb.de/ --- acts as the principal bank to the state of Bavaria and as the central clearing house for the 75 Bavarian sparkassen (savings banks). Also serving corporations, national and local governments, financial institutions, and real estate firms, the bank offers a variety of services, including financing, security underwriting and trading, and risk management. It provides retail and private banking services for individuals through its Internet bank, Deutsche Kreditbank, and through banking subsidiaries in central and southeastern Europe. BayernLB's Landesbank Saar subsidiary (75% owned) provides financing to small and midsized businesses in the German state of Saarland and in France. BLUEBONNET FINANCE: Fitch Cuts Ratings Class D & E Notes to Low-B ----------------------------------------------------------------- Fitch Ratings has downgraded Bluebonnet Finance plc's floating- rate notes due December 2016. Bluebonnet Finance plc is a refinancing of a loan facility provided by Citigroup Inc. to Lone Star Fund V to acquire a portfolio of performing loans, sub- performing loans and non-performing loans from a German mortgage bank. -- EUR257.9 million Class A (XS0279760184): downgraded to 'A' from 'AAA'; off Rating Watch Negative; assigned Stable Outlook -- EUR125 million Class B (XS0279762552): downgraded to 'BBB' from 'AA'; off RWN; assigned Negative Outlook EUR85 million Class C (XS0279763360): downgraded to 'BBB-' from 'A'; off RWN; assigned Negative Outlook -- EUR70 million Class D (XS0279764335): downgraded to 'BB+' from 'BBB'; off RWN; assigned Negative Outlook EUR40 million Class E (XS0280025786): downgraded to 'BB' from 'BBB'; off RWN; assigned Negative Outlook The downgrade reflects the failure to replace the liquidity facility provider as well as early signs of deterioration in collections. In December 2008, the liquidity facility provided to the issuer by Danske Bank expired. Ordinarily, a timely renewal request would be delivered to the provider in order to secure ongoing services; however, this request was not made, which permitted the provider to terminate the facility without extending a standby loan. Accordingly, Fitch placed all classes of notes on RWN on January 14, 2009. On April 20, 2009, having failed to find a replacement provider, the issuer indicated that such efforts would be discontinued. The issuer is expected to remain without a liquidity facility. As such, should quarterly collections be insufficient the issuer will have no means of covering interest payments on the senior notes. This suggests transaction performance is reliant on a minimum periodic collection rate being maintained, a task carried out by the sub-servicer (Hudson Advisors Germany, rated 'RSS2+D/CSS2+D'). In this regard, quarterly collections have been below Fitch's corresponding base case since October 2008; however there is still ample senior bond interest coverage. The latter should rise after recent falls in 3m Euribor are used to reset subsequent bond payments. The presence of performing loans in the portfolio provides additional comfort given collections are voluntary, less volatile and rely less on the ability of the sub-servicer. Despite these mitigants, the lack of a liquidity facility leaves the issuer more likely to default on its liabilities. Moreover, although total cumulative net collections as at April 2009 remain above Fitch's corresponding benchmark, if the early signs of weakening performance herald a trend, cumulative net collections may fall below Fitch's base case in the short-to- medium term. With conditions for German real estate worsening, the risk of continued underperformance has risen, prompting the Negative Outlook on class B through E notes. The class A notes remain on Stable Outlook because their seniority, and the short average life that this is expected to confer upon them, ought to offer protection against longer term trends in performance. At closing, the pool was made up of German commercial and residential (primarily largely multi-family) mortgage NPLs and SPLs with total claims of EUR2.8 billion. As of April 16, 2009, the outstanding portfolio accounted for 2,719 unresolved claims, for a total gross book value of EUR2,138 million. The pool is mainly located in west Germany (56% by property value) and primarily consists of commercial loan (50% by property value). NPLs remain the larger component by number of claims (59% compared to 52% at closing), with PLs decreasing in their contribution (17% from 24% at closing). Fitch will continue to monitor the performance of the transaction. COMMERZBANK AG: Posts US$1.15-Bln 1Q Loss, EU Approves Bailout -------------------------------------------------------------- Jann Bettinga and Aaron Kirchfeld at Bloomberg News report that the European Union has approved a government bailout for Commerzbank AG on the condition the lender will sell its Eurohypo unit. The report says the European Commission, the EU's executive arm in Brussels, approved the second part of a state-led bailout when the bank-rescue fund in January injected EUR10 billion of capital in return for a government stake of 25 percent plus one share. The EU will require Commerzbank to sell commercial- property lender Eurohypo and focus on retail and corporate banking in Germany and eastern Europe, the report states. Eurohypo, a public finance and commercial-property lender which Commerzbank bought for about EUR4.5 billion in a deal completed in 2006, had a pretax loss of about EUR1.4 billion last year, Bloomberg News says. Commerzbank will sell Eurohypo within the next five years and dispose of Kleinwort Benson Private Bank, Dresdner Van Moer Courtens S.A, Dresdner VPV NV, Privatinvest Bank AG, Reuschel & Co. KG and Allianz Dresdner Bauspar AG by the end of 2011, the Frankfurt-based bank said in a separate statement obtained by Bloomberg News. The report relates the EU said Commerzbank will also be subject to a general ban for three years on acquisitions of financial institutions or other businesses which potentially compete with it. According to Bloomberg News, Commerzbank, which in January acquired competitor Dresdner Bank AG, first tapped Germany's Soffin bank-rescue fund for EUR8.2 billion in capital last November after the bankruptcy of New York-based Lehman Brothers Holdings Inc. froze credit markets. It received an additional EUR10 billion from Germany's bank-rescue fund, known as Soffin, in January. Paying Gov't Aid William Launder at Dow Jones Newswires reports Commerzbank Chief Executive Martin Blessing said Friday the bank intends to pay back state aid it is recieving from the German government in full and currently doesn't require further new state aid. The report relates the bank aims to return to profitability no later than 2011, with an operating profit of more than EUR4 billion a year beginning in 2012 and a return on equity after taxes of around 12% from 2012. Mr. Blessing, as cited by Dow Jones, further said Commerzbank's integration of Dresdner Bank is on track and the bank's various brands will be integrated by 2010. Commerzbank plans to cut a total of 390 jobs at its Eurohypo unit, Dow Jones notes. 1st Quarter Loss A separate Bloomberg News report says Commerzbank posted a first- quarter loss that was bigger than analysts estimated because of debt-related writedowns and higher loan-loss provisions. According to the report, the bank incurred a net loss of EUR861 million (US$1.15 billion) in the first-quarter, compared to the EUR772 million median estimate of nine analysts surveyed by Bloomberg. The report notes the bank had a pro-forma profit of EUR236 million a year earlier. The report relates Commerzbank booked EUR1.8 billion in writedowns on securities backed by assets including residential mortgages and on other investments in the quarter. Loan-loss provisions rose more than fourfold to EUR844 million as it set aside more money for possible defaults, the report says. About Commerzbank AG Germany-based Commerzbank AG (FRA:CBK) -- https://www.commerzbank.com/ -- is an integrated bank and financial institution. The Company's operates in five segments: Private Customers, Mittelstandsbank, Central and Eastern Europe, Corporates & Markets and Commercial Real Estate. Commerzbank AG serves a total of approximately 14 million private and corporate customers. Commerzbank is a service provider for private and business customers, as well as small and mid-sized companies, while also serving large and multinational corporate customers. In March 2008, the Company completed the acquisition of a majority stake of 60% plus one share in the private Ukrainian bank, Bank Forum. In May 2008, The Royal Bank of Scotland Group plc and Commerzbank AG sold their stakes in Hellenic Telecommunications Organization SA (OTE). On January 12, 2009, Commerzbank AG completed the acquisition of Dresdner Bank. FRESENIUS SE: S&P Changes Outlook to Stable; Keeps 'BB' Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Germany-based health care companies Fresenius SE and its subsidiary Fresenius Medical Care AG & Co. KGaA to stable from negative. At the same, all ratings, including the 'BB' long-term corporate ratings, were affirmed. "The rating actions reflect the fact that FME's debt protection measures are in line with S&P's target ratios for the 'BB' rating, that S&P expects FSE to achieve these target levels by the end of 2009, and that S&P expects both FSE and FME will be able to maintain these levels," said Standard & Poor's credit analyst Marketa Horkova. Specifically, this means an adjusted ratio of debt to EBITDA of a maximum of 3.5x and an adjusted ratio of debt to funds from operations between 15% and 20%. For the 12 months to March 31, 2009, FSE's adjusted ratio of debt to EBITDA was about 3.9x, still beyond S&P's guideline but an improvement on the 4.2x at year-end 2008. Meanwhile, the ratio of adjusted FFO to debt stood at about 17%, in line with S&P's expectations. For the same period, FME achieved an adjusted ratio of debt to EBITDA of about 3.4x and FFO to debt of about 21%. The rating action also reflects continuing strong revenue growth in low double digits, supported by organic revenue growth in high single digits. FSE estimates the latter to be between 6% and 8% in 2009. In the three months to March 31, 2009, FSE achieved sales growth of 15%, measured in constant currencies and based on organic growth of 8%. S&P recognizes the group's commitment to maintain a long-term 'BB' rating and financial ratios that S&P views as commensurate with this rating level. However, S&P does not factor in any sizable debt-funded acquisitions. The ratings on FSE and FME reflect Standard & Poor's view of the group's aggressive financial profile owing to an acquisitive track record. In addition, because FME accounts for about 59% of group revenues, the ratings are further constrained by FME's predominant focus on a single disease area, although this is tempered by the continuing diversification of the remainder of the group through FSE subsidiary Fresenius Helios and expansion into the German hospital operations sector. Among the factors supporting the group's satisfactory business risk profile are FME's position as the world's largest provider of products and services for dialysis and its integration into FSE as well as FSE's market-leading position in Europe for clinical nutrition and infusion therapy. Additional enhancing factors include a recurrent revenue stream owing to the chronic nature of kidney failure, attractive growth prospects due to favorable demographic trends and increasing health care demand in developing countries, and rising exposure to the lucrative U.S. market through FME and APP Pharmaceuticals Inc., which was acquired in July 2008. The stable outlook reflects the fact that FME's ratios are in line with S&P's guidance for the 'BB' rating, that S&P anticipate FSE will achieve these target levels by the end of 2009, and that both FSE and FME will be able to maintain these levels. S&P base these assumptions on FSE achieving organic growth between 6% and 8% in 2009, while improving its operating performance. The stable outlook also reflects the group's commitment to maintain the 'BB' rating and financial ratios that S&P views as commensurate with this rating level. The stable outlook does not factor in any sizable debt-funded acquisitions. S&P would consider a negative rating action if FSE fails to restore its financial metrics in line with S&P's expectations either due to operational underperformance, an increased cost of borrowing, unfavorable exchange rate movements, or higher leverage from add-on acquisitions. Downward rating pressure could also come from a failure of both FSE and FME to demonstrate that they will operate within the stated guidelines for the current rating. Rating upside is remote at present because of financial policy limitations. HIGH TECH: Claims Registration Period Ends July 9 ------------------------------------------------- Creditors of High Tech Venture Partners GmbH have until July 9, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Aug. 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of 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: Karl-Heinz Trebing Hanauer Landstr. 287 � 289 60314 Frankfurt/Mainz Germany Tel: 069/15051300 Fax: 069/15051400 The court opened bankruptcy proceedings against the company on April 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: High Tech Venture Partners GmbH Wendelsweg 64 60599 Frankfurt am Main Germany Attn: Christoph Wackerbarth, Manager Jahnstrasse 6 64347 Griesheim Germany MALER SERVICE: Claims Registration Period Ends June 5 ----------------------------------------------------- Creditors of Maler Service Team 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 9:40 a.m. on June 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wilhelmshaven Hall 109 Old Building Market Route 15 26382 Wilhelmshaven Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bernd Sundermeier Alte Wiefelsteder Strasse 3 26316 Varel Germany Tel: 04451/913880 Fax: 04451/913839 E-mail: buero@hsm-stb.de The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Maler Service Team GmbH Bismarckstrasse 156 26382 Wilhelmshaven Germany Attn: Frank Mueller-Angst, Manager Luebecker Strasse 5 26382 Wilhelmshaven Germany MEXX BODY: Claims Registration Period Ends June 5 ------------------------------------------------- Creditors of Mexx Body & Beach 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 2:15 p.m. on July 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Konstanz Hall 102 Untere Laube 12 78462 Konstanz 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. Volker Grub Humboldtstr. 16 70178 Stuttgart Germany The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mexx Body & Beach GmbH Attn: Karl-Achim Klein, Manager Schuetzenstr. 18 78315 Radolfzell Germany MR BAUSTROM: Claims Registration Period Ends June 22 ---------------------------------------------------- Creditors of MR Baustrom und Elektroanlagen Service GmbH have until June 22, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on 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 Meiningen Meeting Hall A 0208 Lindenallee 15 Meiningen 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: Klaus Siemon Strasse der Nationen 51 09111 Chemnitz Germany The court opened bankruptcy proceedings against the company on April 28, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MR Baustrom und Elektroanlagen Service GmbH Attn: M.Mueller and H. Roscher Rennsteigstr. 2 98544 Zella-Mehlis Germany PREPS 2005-2: Moody's Junks Ratings on Two Classes of Notes ----------------------------------------------------------- Moody's Investors Service has downgraded its ratings of four classes of notes issued by Preps 2005-2 plc. The rating action is a response to i) credit deterioration in the collateral portfolio, including four defaults and an early termination totalling EUR47 million, ii) the comparably high outstanding Principal Deficiency Ledger, mitigated by the relatively large ratio of assets to liabilities and iii) 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 and which are also being applied in its analysis of SME CDOs. Moody's announced the changes to these assumptions in a press release published on Feb. 4, 2009. The revisions affect default probability and correlation, which are key parameters in Moody's model for rating CLOs. In addition, the equivalent Moody's ratings used in Moody's analysis are obtained through an econometric model called Riskcalc developed by Moodys KMV, based on financial statements provided by the issuers on an annual basis. The results from the Riskcalc model were first mapped to Moody's alpha numeric rating scale and then, in order to compensate for the absence of credit indicators such as rating reviews, outlooks and adjustments factoring in cyclical developments in the economy, a 1 notch stress was applied. The deal was modeled using CDOROM 2.5 to get a loss distribution that was then used as an input in a cash flow model. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) -- Moody's Approach to Rating CDOs of SMEs in Europe (February 2007) The rating actions are: Preps 2005-2 plc: (1) EUR217,000,000 Class A1 Floating Rate Notes due December 2014 (currently 200 million) -- Current Rating: A3 -- Prior Rating: Aaa under review for possible downgrade -- Prior Rating Date: 13 March 2009, Aaa placed under review for downgrade 2) EUR53,000,000 Class A2 Fixed Rate Notes due December 2014 (currently EUR49 million) -- Current Rating: A3 -- Prior Rating: Aaa under review for possible downgrade -- Prior Rating Date: 13 March 2009, Aaa placed under review for downgrade (3) EUR41,500,000 Class B1 Floating Rate Notes due December 2014 -- Current Rating: Caa2 -- Prior Rating: Ba1 under review for possible downgrade -- Prior Rating Date: 13 March 2009, Ba1placed under review for possible downgrade 4) EUR12,500,000 Class B2 Fixed Rate Notes due December 2014 -- Current Rating: Caa2 -- Prior Rating: Ba1under review for possible downgrade -- Prior Rating Date: 13 March 2009, Ba1 placed under review for possible downgrade SCHIESSER LIFESTYLE: Claims Registration Period Ends June 5 ----------------------------------------------------------- Creditors of Schiesser Lifestyle 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 2:30 p.m. on July 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Konstanz Hall 107 Gerichtsgasse 9 78462 Konstanz 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. Volker Grub Humboldtstr. 16 70178 Stuttgart Germany The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schiesser Lifestyle GmbH Attn: Karl-Achim Klein, Manager Schuetzenstr. 18 78315 Radolfzell Germany SCHUMAG HOLDING: Claims Registration Period Ends June 18 -------------------------------------------------------- Creditors of Schumag Holding GmbH have until June 18, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 1:40 p.m. on July 2, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 293 Zweigertstr. 52 45130 Essen 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: Bernd Depping Alfredstr. 108-112 45131 Essen Germany The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schumag Holding GmbH Friedrichstr. 47 45128 Essen Germany Attn: Dr. Dietmar Schallwich, Manager Birkenweg 31 42579 Heiligenhaus Germany SKY & FLY: Claims Registration Period Ends July 2 ------------------------------------------------- Creditors of Sky & Fly GmbH have until July 2, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Munich Meeting Room 101 Infanteriestr. 5 80097 Munich Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Prager Barthstr. 16 80339 Muenchen Germany Tel: 089-8589633 Fax: 089-85896350 The court opened bankruptcy proceedings against the company on April 22, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sky & Fly GmbH Attn: Hosniarah Torah, Manager Painbreitenstr. 4 82031 Gruenwald Germany STADER INDUSTRIESERVICE: Claims Registration Period Ends June 10 --------------------------------------------------------------- Creditors of Stader Industrieservice GmbH have until June 10, 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 22, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Stade Hall 113 Main Building Wilhadikirchhof 1 21682 Stade 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: Stephanie Pidun Jungfernstieg 51 20354 Hamburg Germany Tel: 040-808136282 Fax: 040-808136374 E-mail: spidun@whitecase.com The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Stader Industrieservice GmbH Sophie-Scholl-Weg 14 21684 Stade Germany Attn: Reiner Finken, Manager Hasenbeckallee 12 21789 Wingst Germany TONOVA GMBH: Claims Registration Period Ends May 28 --------------------------------------------------- Creditors of Tonova GmbH have until May 28, 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 22, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Augsburg Law Courts Meeting Room 162 Alten Einlass 1 86150 Augsburg 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: Rainer U. Mueller Schiessstatten St. 15 86159 Augsburg Germany The court opened bankruptcy proceedings against the company on April 20, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tonova GmbH Attn: Klaus-Dieter Burchardt and Lothar Hiller, Managers Werder St. 2 86159 Augsburg Germany TREOFAN HOLDINGS: Moody's Affirms 'Caa2' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service affirmed the Caa2 Corporate Family Rating of Treofan Holdings GmbH. At the same time Treofan's Probability of Default Rating was downgraded to Ca from Caa2 and the rating on Treofan's EUR170 million Second Lien Notes was downgraded to Ca from Caa3. The rating outlook remains negative. The downgrade of the PDR to Ca was prompted by Treofan's recent announcement to negotiate a debt for equity exchange with the holders of the company's EUR170 million second lien notes. While no payment default has occurred and there are no material debt maturities until July 2010, in Moody's opinion the successful closing of the transaction, which is designed to reduce debt and interest expense, would represent the occurrence of a deemed default. Moreover, the PDR reflects the high likelihood of the transaction closing in the agency view. The affirmation of the Corporate Family Rating at Caa2 reflects the expected recovery rate and probability of default after the closure of the exchange offer and the new capital structure with lower debt loading, if successfully implemented. The rating outlook is negative in view of (i) the remaining uncertainty regarding the implementation of the proposed debt for equity exchange and (ii) in view of the limited visibility for Treofan's operating performance. According to Treofan's recent announcement, key elements of the envisaged restructuring include: (i) an offer to Second Lien Note holders to tender their notes for equity of the Treofan Group (ii) extending the maturity of the existing EUR80 million senior revolving credit facility by one year to July 2011 along with a reset of financial covenants (a covenant holiday for Q4/2008 and Q1/2009 was previously already agreed) (iii) a capital injection to principally finance planned operational and financial restructuring measures Moody's views this transaction as a means of shrinking an unsustainable debt capital structure which absent the proposed debt for equity exchange offer may become a source of significant financial stress. Given the recessionary environment, Moody's anticipates the company's EBITDA and operating cash flow to remain weak despite the company's announcement that adjusted EBITDA in Q1 2009 amounted to EUR8.5 million which compares to EUR6.1 million in Q1 2008 and EUR-0.6 million in Q4 2008. In sum, these features cause the envisaged financial restructuring to be viewed as analogous to a distressed exchange, which is deemed to represent a default by Moody's and incorporated in the Ca PDR. Until the implementation of the financial restructuring the Ca PDR will prevail. Upon closing of the exchange, the PDR will be repositioned to Caa2/LD to reflect the limited default that will have occurred. This incorporates Moody's current belief that the going-forward PDR will likely end up at the Caa2 level shortly after transaction closing. The "/LD" suffix will be removed after approximately three business days. In the event that some debt issues are retired in their entirety upon transaction closing, the relevant ratings for the same would be withdrawn. Rating Changes: Issuer: Treofan Germany GmbH & Co. KG -- Senior Subordinated Regular Bond/Debenture, Downgraded to Ca from Caa3 Issuer: Treofan Holdings GmbH -- Probability of Default Rating, Downgraded to Ca from Caa2 Issuer: Treofan Germany GmbH & Co. KG -- Senior Subordinated Regular Bond/Debenture, Changed to LGD5, 70% from LGD5, 72% The last rating action for Treofan has been on December 6, 2007, when Moody's downgraded the Corporate Family Rating to Caa2 from Caa1. Treofan Holdings GmbH, based in Raunheim, Germany, is a manufacturer of polypropylene film, which is primarily used to produce flexible packaging as well as labels for food and other consumer products such as cigarette wrappings and technical applications such as capacitors. Since two ownership changes, the company went through two major restructuring programs, under one of which Goldman Sachs became majority shareholder. As per the last twelve months ending September 2008 Treofan reported EUR497 million of revenues. VITAL WARENHANDELSGESELLSCHAFT: Claims Registration Ends June 19 --------------------------------------------------------------- Creditors of Vital Warenhandelsgesellschaft mbH have until June 19, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on July 3, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of 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: Hermann Berding Jammertal 1 49661 Cloppenburg Germany Tel: 04471/9126-0 Fax: 04471/82997 The court opened bankruptcy proceedings against the company on April 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Vital Warenhandelsgesellschaft mbH Daimlerstrasse 5a 49661 Cloppenburg Germany Attn: Jens Nintza, Manager Roggenkamp 13 49681 Garrel Germany ============= I R E L A N D ============= MAGI FUNDING: Moody's Puts BB Rating on Class K Notes on Watch Neg ------------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on the class B, C, and K notes issued by Magi Funding I PLC. The 'AAA' rating on the class A notes remains unaffected. These CreditWatch negative placements follow S&P's preliminary review of the deterioration in the credit quality of the underlying portfolio in this cash flow collateralized debt obligation transaction. Based on S&P's assessment of the portfolio, S&P considers approximately 15% of the assets to be rated 'CCC+' and below, of which approximately 5% are rated 'D'. The deterioration is also reflected in the par value ratios as noted in the trustee report. In S&P's opinion, portfolio credit deterioration and par losses increase the risk that cash flows may not be sufficient to fully repay all the rated classes, thus putting downward pressure on the ratings. In determining whether to place a CDO tranche rating on CreditWatch, S&P takes into consideration a number of factors, including, but not limited to: -- The percentage of assets (including the change in the percentage of assets), based on S&P's analysis, rated below 'B-' and the percentage of defaults already experienced in the portfolios; -- S&P's rated overcollateralization metric, which provides an estimate of rating stability for cash flow CDO tranches based on output from Standard & Poor's CDO Evaluator model and a simplified cash flow analysis; and -- Trends in performance metric results across similar transactions. S&P will closely monitor the transaction's performance and perform further cash flow analysis before resolving these CreditWatch placements. Magi Funding I closed on Feb. 23, 2006, and is a managed cash flow transaction collateralized by a pool of corporate loans. Ratings List Magi Funding I PLC EUR300 Million Floating-Rate Notes Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- B A/Watch Neg A C BBB/Watch Neg BBB K Combo BB/Watch Neg BB ========= I T A L Y ========= CHRYSLER LLC: Michigan Says Fiat Sale Does Not Protect Workers -------------------------------------------------------------- The State of Michigan Workers' Compensation Agency and Funds Administration complains that the proposed sale of Chrysler LLC's operating assets to a new company 20% owned by Fiat S.p.A. does not provide sufficient protection for the Debtors' workers in Michigan. Dennis Raterink, attorney general from the Workers' Compensation Unit, says that the sale violates the compensation self-insurance authority in Michigan and leaves the Debtors' workers without a source of compensation benefit payments. "The sale of substantially all assets to the successful bidder, without that bidder assuming the Debtors' workers compensation liabilities in Michigan, may leave Debtors without adequate resources to secure the payment of their workers' compensation obligations," Mr. Raterink says. He says that this may require the agency to revoke the Debtors' self-insured authority and require the Debtors to acquire workers' compensation insurance coverage or furnish a bond and other forms of security to cover their liabilities. "Should the current sale order be approved, as presented, the workers' compensation benefits of transferred employees could be affected, as the successful bidder, being a new employer in Michigan, could be prohibited from obtaining self-insurance authority in Michigan," Mr. Raterink says. Under Michigan law, an employer that is in business less than five years cannot be considered for self-insured authority unless its workers' disability compensation liability is guarantied by a parent corporation or combinable affiliated entity that has been in business not less than five years and that would qualify for self-insured authority in Michigan. "Without self-insured status, the successful bidder would need to acquire workers' compensation insurance coverage in order to operate in Michigan," Mr. Raterink points out. Mr. Raterink further says that if the Self-Insurers' Security Fund was forced to assume the Debtors' workers' compensation obligations, enough funds exist only to make benefit payments for a matter of weeks before Security Fund becomes insolvent itself. The Self-Insurers' Security Fund is one of the three funds that make up the Funds Administration. It was created to provide benefits to affected workers under the Workers' Compensation Disability Act. Mr. Raterink says that the Debtors' total workers compensation obligations may exceedUS$140 toUS$150 million, with yearly payment obligations of overUS$25 million. "Even if the Funds Administration levies emergency assessments to existing self-insured employers, the Self-Insurers' Security Fund's maximum possible balance would be approximately US$9 million, substantially less than needed to cover the Debtors' statutory obligations," he says. The proposed sale also drew flak from Bridgestone Americas Tire Operations LLC, Superior Industries Inc., The Timken Company Harman Becker Automotive Systems Inc., Plast-O-Foam LLC, Flight Systems Automotive Group LLC, and BASF Corporation. The companies disapprove of the proposed procedures governing the assumption and assignment of executory contracts and leases to the purchaser. Bridgestone Americas complains that the proposed procedures may grant the Debtors or the purchaser authority to change the terms and conditions of executory contracts or unexpired leases. Bridgestone Americas points out that there is no provision in bankruptcy law granting such authority. Meanwhile, the other companies complain that the proposed procedures authorize the purchaser to exclude contracts and leases that have already been designated for assumption and assignment. They say it would permit the purchaser to void any prior assumption and assignment of a contract even if the closing of the proposed sale has occurred; the Court has entered an order approving the assumption and assignment; and the cure amount has been paid. Court Approves Bidding Procedures Chrysler LLC obtained approval from the U.S. Bankruptcy Court for the Southern District of New York of its proposed bidding procedures for the sale of substantially all its assets pursuant to an auction on May 27, 2009, according to a report by Bloomberg News. Chrysler offered to sell its assets in the auction to New CarCo Acquisition LLC, a Delaware company formed by Fiat S.p.A., or to any other company interested to bid for the assets. The Fiat group'sUS$2 billion offer for the assets will be the lead bid in the auction. The assets to be sold include intellectual property rights, facilities, executory contracts and leases, and those related to the research, production and distribution of vehicles under brand names that include Chrysler, Jeep(R) and Dodge. The sale is part of the Master Transaction Agreement that Chrysler executed with Fiat and New CarCo on April 30, 2009. The Court also approved aUS$35 million breakup fee for Fiat in case it is outbid at the auction, Bloomberg reported. Meanwhile, the Court overruled an objection from a group of Chrysler's secured lenders that the process was overly influenced by President Barack Obama's administration and would distribute proceeds improperly because it involved a "sub rosa" or secret reorganization, the report further said. At the request of its Creditors' Committee, Chrysler put the deadline for competing bids at May 20, 2009, and set a May 27, 2009 hearing to approve the winning bid. Robert Manzo of Capstone Advisory Group LLC, a Chrysler financial adviser, had testified that the company has essentially been for sale for more than a year, as Chrysler executives sought automaker partners around the world and no bidders surfaced. Without the Fiat alliance, secured creditors may not receive any recovery, Mr. Manzo told the Court. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- manufactures Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan, and Australia. In 2007, Cerberus Capital Management LP acquired an 80.1% stake in Chrysler for US$7.2 billion. Daimler AG kept a 19.9% stake. Pursuant to the U.S. Government's Automotive Industry Financing Program, the U.S. Department of the Treasury made emergency loans to General Motors Corp., Chrysler Holding LLC, and Chrysler Financial Services Americas LLC. The Treasury purchased senior preferred stock from GMAC LLC. In exchange, Chrysler and GM submitted restructuring plans to the Treasury on February 17, 2009. Upon submission, President Obama's Designee on the Auto Industry determined that the restructuring plans did not meet the threshold for long-term viability. However, on March 30, 2009, both GM and Chrysler were granted extensions to complete the restructuring plans to comply with the requirements set forth under the Automotive Industry Financing Program. The U.S. Government told Chrysler March 31, 2009, it would provide up to US$6 billion in financing if (i) Chrysler and Fiat SpA could complete a deal by the end of April -- on top of the US$4 billion Chrysler has already received -- and (ii) Chrysler would obtain concessions from constituents to establish a viable out-of-court plan. On April 30, Chrysler LLC and 24 affiliates sought Chapter 11 protection from creditors (Bankr. S.D. N.Y (Mega-case), Lead Case No. 09-50002). U.S. President Barack Obama said that Chrysler had to file for bankruptcy after the automaker's smaller lenders, including hedge funds that he didn't name -- "a small group of speculators" -- refused to make the concessions agreed to by the Company's major debt holders and workers. In connection with the bankruptcy filing, Chrysler has reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Chrysler has hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler's says that as of December 31, 2008, it had US$39,336,000,000 in assets and US$55,233,000,000 in debts. Chrysler had US$1.9 billion in cash at that time. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FIAT SPA: CEO Plans to Use Existing Platforms for New Cars ---------------------------------------------------------- A Bloomberg News report says as Fiat SpA works on taking over Chrysler LLC, the Italian automaker's chief executive officer, Sergio Marchionne, aims to build many cars off of existing platforms to reduce costs. The report relates Mr. Marchionne, who plans to become Chrysler's CEO after the takeover, has said a successful carmaker needs to sell at least 5.5 million vehicles a year globally to survive and would add General Motors Corp.'s brands Opel, Vauxhall and Saab to reach the target. Just recently, Chrysler reached agreement with Fiat to use the Alfa Romeo 149 luxury car platform, which is being developed in Europe, in building new cars in the U.S., Bloomberg News says citing court filings. Mr. Marchionne is setting out to build a pan-European car company from the rubble of the U.S. auto industry, an earlier Bloomberg News report said. "My goal is to sell the first Fiat 500 in the U.S. by the end of 2010," Bloomberg News quoted Mr. Marchionne as saying. According to the Troubled Company Reporter, on April 30, Chrysler and 24 affiliates sought Chapter 11 protection from creditors (Bankr. S.D. N.Y (Mega-case), Lead Case No. 09-50002). U.S. President Barack Obama said that Chrysler had to file for bankruptcy after the automaker's smaller lenders, including hedge funds that he didn't name -- "a small group of speculators" -- refused to make the concessions agreed to by the company's major debt holders and workers. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. The Agnelli family vie for a 10 percent share of the new company formed by the two automakers' alliance, Flavia Krause-Jackson at Bloomberg News relates citing a la Repubblica report. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. * * * As reported in the Troubled Company Reporter-Europe on May 8, 2009, Standard & Poor's Ratings Services said that its 'BB+' long- term corporate credit rating on Italian industrial group Fiat SpA remains on CreditWatch with negative implications, where it was placed on Jan. 22, 2009. At the same time, the 'B' short-term corporate credit rating was affirmed. As reported in the Troubled Company Reporter-Europe on Feb. 25, 2009, Moody's Investors Service downgraded Fiat S.p.A's long term ratings to Ba1 from Baa3 and its short term ratings to Not Prime from Prime-3. The outlook on the ratings is negative. At the same time Moody's assigned a Ba1 Corporate Family Rating. The rating action concluded Moody's review for downgrade initiated on January 15, 2009. UBS AG: Italian Prosecutors Sue Firm on Derivatives Contracts ------------------------------------------------------------- Elisa Martinuzzi and Sonia Sirletti at Bloomberg News report that Italian prosecutors said UBS AG deliberately defrauded Milan when they sold city derivatives contracts. According to the report, Alfredo Robledo, who is leading the probe, said in court documents that the bank failed to tell the city in writing it would be treated as a so-called market counterparty, instead of an intermediate customer. Milan is among about 600 Italian municipalities that took out 1,000 derivatives contracts worth a total of EUR35.5 billion, the report says citing Italy's Treasury. The city is suing the bank after it lost EUR298 million on its derivatives as of June while UBS, along with three other banks, earned about EUR101 million (US$134 million), the report discloses. The bank misled the city on the advantages of the bonds and derivatives by omitting to show the client the costs, prosecutors said in court documents obtained by Bloomberg News. The report relates the court filings said the police seized EUR75.8 million from UBS on Mr. Robledo's request, which was approved by judge Giuseppe Vanore, and UBS has since deposited cash to free up the assets. The Troubled Company Reporter-Europe on May 7, 2009, citing Telegraph.co.uk, reported that UBS incurred losses of SWF1.98 billion in the first quarter of the year, compared with a loss of SWF9.56 billion for the three months to December. The report said to meet its planned SWF3.5 billion-SWF4 billion of cost reductions by the end of next year, UBS will shed 4,000 jobs at its wealth management and Swiss banking unit. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. =================== K Y R G Y Z S T A N =================== COMMUNICATION SERVICE: Creditors Must File Claims by May 29 ----------------------------------------------------------- LLC Communication Service has shut down. Creditors have until May 29, 2009, to submit proofs of claim to: Ujny Side Street 25 Leninskoye Alamudun Chui Kyrgyzstan Tel: (+996 312) 44-60-60 MEG ALLIANCE: Creditors Must File Claims by May 29 -------------------------------------------------- LLC Meg Alliance has shut down. Creditors have until May 29, 2009, to submit proofs of claim. Inquiries can be addressed to (0-555) 31-58-07. PROD IMPORT: Creditors Must File Claims by May 29 ------------------------------------------------- LLC Prod Import has shut down. Creditors have until May 29, 2009, to submit proofs of claim. Inquiries can be addressed to (+996 312) 31-30-75, 31-30-73. ===================== N E T H E R L A N D S ===================== CREDIT EUROPE: Moody's Comments on Recent Deposit Rating Downgrade ------------------------------------------------------------------ Moody's notes that the recent downgrade of Credit Europe Bank N.V.'s deposit rating to Ba2 has triggered the occurrence of certain events relating to the Notes issued by CEB Consumer Finance S.A. SIC Institutionnelle de droit belge as the 'Issuer'. The Issuer appointed CEB as a servicer to a portfolio of securitised consumer loans. Following the rating action on CEB, amongst other things, CEB is obliged to appoint a back up servicer within 90 days, failing which the transaction will enter into amortisation. Moody's is closely following the developments and will provide an update as necessary. Date of previous rating action: 30 Dec 2008. Please refer to Moody's New Issue Report dated 30 Dec 2008. =========== N O R W A Y =========== STOREBRAND LIVSFORSIKRING: Moody's Cuts Junior Debt Ratings to Ba1 ------------------------------------------------------------------ Moody's downgraded and revised the outlook to stable from negative the ratings of Storebrand Livsforsikring AS (IFSR to A3 from A2) and the Baa3 LT Issuer Rating/Senior Unsecured MTN and Ba1 Subordinated MTN/Junior Subordinated MTN debt ratings of Storebrand ASA. Moody's said that it would comment separately on the ratings of Storebrand Bank. Moody's said that its rating action on Storebrand reflected the recent weakened solvency position and pressurised profitability at the Group, which reported a Q1 2009 pre-tax loss of NOK733 million (Q1 2008: pre-tax profit of NOK535 million), driven primarily by writedowns on private equity/property, further investment losses and solvency strengthening activities at the Swedish subsidiary, SPP. The Group's reported solvency margin deteriorated from 160% at YE 2008 to 148%, although the de-risking strategy undertaken has considerably reduced the group's sensitivity to future market volatility and Moody's notes that as a result of management actions within SPP, its solvency ratio actually increased significantly to 187% at Q1 2009. David Masters, Moody's Analyst and lead analyst for Storebrand added "Given the deterioration of Storebrand's solvency position over recent quarters as a result of the financial markets turmoil, remedial action by management has become increasingly necessary, including investment de-risking together with a NOK1 billion capital injection into Storebrand Liv and changes to the financial statements during 2008 which have affected solvency margins positively". In Moody's view these actions, whilst bolstering solvency, have led to some reduction of financial flexibility. Mitigating these negative factors to some extent, Moody's notes that the increasing proportion of loans and receivables on the balance sheet, with a running yield of 5.3% (compared to an average guaranteed rate of around 3.5%) should help mitigate the risk of providing these guarantees to policyholders. Furthermore, Moody's views the significant property portfolio as being relatively conservatively valued on the balance sheet, and notes that Storebrand continues to maintain its leading market position in Norway and is benefiting from the integration of SPP, with premium income in Q1 2009 increasing by 14%/38% respectively for defined benefit/contribution schemes, compared to Q1 2008. Moody's stable outlook for Storebrand reflects Moody's expectation that the Group's strong business franchise should be sufficient to offset any additional asset-related stresses. Moody's added that further negative rating action could occur if Storebrand's solvency margin was to fall below 125%, or if financial leverage exceeded the low-30%'s in the medium term or in the event of sustained negative interest results. Storebrand Group, headquartered in Oslo, Norway, had total shareholders' equity of NOK15.3 billion as at end Q1 2009. These ratings were downgraded, all with a stable outlook: -- Storebrand Livsforsikring AS insurance financial strength to A3 -- subordinated debt to Baa2 -- junior subordinated debt to Baa2 -- subordinated MTN debt to Baa2 -- junior subordinated MTN debt to Baa2 -- capital contribution securities to Baa3 -- Storebrand ASA senior unsecured MTN debt to Baa3 -- issuer rating to Baa3 -- subordinated MTN debt to Ba1 -- junior subordinated MTN debt to Ba1 The last rating action was on October 29, 2008, when Storebrand's ratings were affirmed with a negative outlook. =========== R U S S I A =========== BANK SOYUZ: S&P Puts 'B-' Rating on Developing CreditWatch ---------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B-' long-term counterparty credit rating, its 'B-' senior unsecured debt rating, and its 'ruBBB-' Russia national scale rating on Russia-based Bank Soyuz remained on CreditWatch, where they were placed with developing implications on Jan. 14, 2009. At the same time, the 'C' short-term counterparty credit rating was affirmed. "The continued CreditWatch status reflects continuing uncertainties about Bank Soyuz's future development, particularly of its financial profile and business strategy," said Standard & Poor's credit analyst Maria Malyukova. On April 30, 2009, as part of a general agreement on the financial recovery of Bank Soyuz, Gazpromregiongaz (not rated) and Basic Element (not rated) announced that Gazfinance had become the owner of a 75% stake in Bank Soyuz. Gazfinance is a 100% subsidiary of Gazpromregiongaz, which is part of OAO Gazprom (BBB/Negative/--). Although the acquisition has been finalized, there are still major uncertainties about future support from Gazfinance in terms of capitalization and funding. Further scope of business development due to a possible merger with another financially distressed Russian bank, Sobinbank -- which has been acquired by the Gazprom group -- and lack of available information create more uncertainty. Bank Soyuz's new majority shareholders will likely elaborate a detailed development plan in the next few months. The ratings on Bank Soyuz reflect substantial government support. The bank is currently undergoing a supervised financial recovery program that may last for up to five years. Under the terms of the program, the Deposit Insurance Agency has provided massive financial support to the bank, including sufficient funds to enable early repayment of its Eurobonds. Bank Soyuz remains under the supervision of the regulator, which has a representative on the bank's board of directors. The bank is not obliged to meet required regulatory ratios, including minimum capital adequacy ratios. To reflect the current government support, S&P adds one notch to Bank Soyuz's stand-alone credit profile. S&P considers that the recovery program for Bank Soyuz could positively affect the bank's liquidity and financial flexibility and help stabilize the bank in the current financial downturn. At the same time, the undefined nature of the program and the difficult operating conditions in the Russian banking sector create uncertainties about Bank Soyuz's creditworthiness, which could lead us to lower the ratings on the bank. S&P will resolve the CreditWatch placement when S&P has detailed information of the bank's future development. An affirmation will depend upon the bank's ability to sustain its liquidity position, capitalization, and financial standing. S&P will lower the ratings if its concerns about liquidity and capitalization are not eased by sufficient support, or if the ongoing turbulence in Russia's financial markets places higher stress on the bank. "Ratings upside is limited without a major enhancement in the bank's stand-alone creditworthiness, including large funding and capital injections and sustained improvement in asset quality," said Ms. Malyukova. CENTER-INVEST BANK: Moody's Affirms 'E+' Financial Strength Rating ------------------------------------------------------------------ Moody's Investors Service has changed the outlook on Center-Invest Bank's B1 long-term deposit ratings to negative from stable and have affirmed E+ bank financial strength rating with a stable outlook. The bank's Not-Prime short-term deposit ratings have also been affirmed. Concurrently, Moody's Interfax Rating Agency downgraded Center-Invest Bank's long-term national scale rating to A2.ru from A1.ru. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. "The outlook change reflects Moody's concerns that the ongoing deterioration of economic conditions as well as the limited access to market funding for refinancing maturing debt are likely to translate into a deterioration of Center-Invest Bank's financial fundamentals. In particular, in Moody's view, ongoing asset quality deterioration is likely to weaken the bank's capital cushion while the recent decrease of working assets triggered by the recent significant wholesale funding repayments puts pressure on its operating efficiency and profitability," said Semyon Isakov, a Moscow-based Moody's Assistant Vice President - Analyst, and lead analyst for this issuer. Moody's notes that the asset quality of the bank is particularly vulnerable to overall deterioration of the operating environment in Russia and the deterioration of the economic situation in the bank's home region, in particular. Center-Invest Bank's asset quality has already started to demonstrate a deterioration, as captured in its YE2008 IFRS results. In the second half of 2008 the level of impaired loans rose to 4.42% from 2.90% at end-June 2008, and in Moody's view impairments are expected to continue to rise throughout 2009. At the same time, the recent deterioration in the bank's net interest margin caused by a reduction in working assets together with an increased cost of funding does not allow the bank to fully absorb the rising cost of risks, thus providing negative pressure on the bank's capital. At the same time, Moody's notes that the bank's ratings continue to benefit from the high level of capital adequacy with a reported Basel I capital ratio standing at 20.6% as at end-March 2009 (19.3% at YE2008). Moody's also explained that it has applied a number of scenarios (base-case and stressed) to the bank's loan books and observed that Center-Invest Bank's capital adequacy may substantially decline over the medium term as soon as the overall asset quality deteriorates, thus reflected in the negative outlook on the bank's long-term ratings. In addition, Moody's notes that almost 45% of Center-Invest Bank's capital at end-March 2009 was formed with Tier 2 instruments including fixed assets revaluation reserves that, in Moody's view, weakens the quality of the bank's capital base. Although the bank has recently repaid a substantial portion of its wholesale funding, including funds attracted from the Central Bank of Russia and does not expect any material repayments in the short term Center-Invest Bank's liquidity position, while currently adequate, remains potentially vulnerable to increased volatility in the customer deposit base. However, Moody's notes that Center- Invest Bank's liquidity profile partly benefits from the remaining access to shareholders' funds, given its ownership by a group of high-profile institutional shareholders such as EBRD, DEG and Erste Bank. Moody's previous rating action on Center-Invest Bank was on 23 September 2008 when the rating agency changed the outlook on the bank's ratings to stable from positive. Headquartered in Rostov-on-Don, Russia, Center-Invest Bank reported -- at 31 March 2009 -- total consolidated unaudited assets of RUB46.5 billion (US$1.37 million) and total shareholders' equity of RUB5.5 billion (US$162 million). Center- Invest Bank is the largest private bank in Rostov Region of Russia, focusing on the SME segment with a well-developed office presence throughout its home territory. The largest controlling shareholders of the bank are EBRD (27.45%), DEG (22.45%) and the Vysokov Family (17.84%). CONSTRUCTION AND TECHNOLOGY: Creditors Must File Claims by May 24 ----------------------------------------------------------------- Creditors of LLC Construction and Technology (TIN 6164261651, PSRN 1076164002265) have until May 24, 2009, to submit proofs of claims to: O. Alekseenko Temporary Insolvency Manager Office 90 Lermontovskaya St. 83 344000 Rostov-on-Don Russia The Arbitration Court of Rostovskaya will convene at 11:30 a.m. on July 27, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?53�3640/09. The Debtor can be reached at: LLC Construction and Technology Khalturinskiy pereulok 83 Rostov-on-Don Russia DON-STROY LLC: Creditors Must File Claims by May 24 --------------------------------------------------- Creditors of LLC Don-Stroy (TIN 6166042119, PSRN 1026104026519) (Construction) have until May 24, 2009, to submit proofs of claims to: K. Kovalenko Insolvency Manager Astrakhanskaya St. 110 Bataysk Rostovskaya Russia The Arbitration Court of Rostovskaya will convene at 10:20 a.m. on June 22, 2009, to hear the company's bankruptcy proceedings. The case is docketed under Case No. ?53�26603/2008. The Debtor can be reached at: LLC Don-Stroy Tekucheva Pereulok 232/199 Rostov-on-Don Russia EVRAZ GROUP: Fitch Puts 'BB' Long-Term IDR on Watch Negative ------------------------------------------------------------ Fitch Ratings has placed metals and mining company Evraz Group SA's Long-term Issuer Default Rating of 'BB' and senior unsecured ratings of 'BB' on Rating Watch Negative. At the same time, Fitch has placed Mastercroft Limited's Long-term IDR of 'BB' on RWN. Mastercroft is Evraz's core subsidiary and most of its assets are located in Russia. Evraz's and Mastercroft's Short-term IDRs have been affirmed at 'B' respectively. The placing of Evraz's Long-term IDR and senior unsecured ratings on RWN reflects Fitch's concern that the company's gross debt/EBITDA and net debt/EBITDA for the financial years 2009-2011 may not remain commensurate with its present ratings. Fitch believes Evraz's profitability could come under pressure following the significant decrease in global demand and prices for steel products. Fitch has observed a persistently negative demand and price environment during Q109 and now expects this to continue for the rest of the year. Fitch believes that Evraz's management has responded appropriately to the current global economic downturn by announcing significant production cutbacks, a cost reduction program, conservative working capital management, and capex reductions. Management has also decided not to pay dividends until the deleveraging plan is completed, and until it sees a market recovery. However, the agency is concerned that these measures may not be sufficient to offset the impact of continued weakening end market conditions, particularly in the construction and tubular sectors to which Evraz has the most exposure. Fitch expects to resolve the RWN over the next two months. Over this period the agency will monitor developments in Evraz's key end-markets and assess the impact on the company's credit profile of measures implemented by management to reduce financial and operational risks. Fitch could potentially downgrade Evraz by one notch if the agency assesses that the measures it takes are not sufficient for credit measures to remain commensurate with the present rating. At FYE08 Evraz had total debt of US$10bn including US$3.9 billion of short-term debt. Gross debt/ EBITDA and net debt/EBITDA stood at 1.57x and 1.42x respectively, and Fitch notes that the company's debt at FYE08 increased 47% from FYE07 due to asset acquisitions. During the last six months, the company managed to convert approximately US$650 million of short-term debt into longer-term debt. At end-Q1 2009, Evraz reduced total debt by US$1 billion to US$9 billion, including the repurchase of its bonds of approximately US$600 million of nominal value. Fitch considers Evraz's liquidity position as adequate. At FYE08, the company had cash of US$929 million, and undrawn committed facilities of US$486 million. The company expects proceeds of US$509 million from the sale of a remaining 49% in NS group to TMK. Fitch forecasts FY09 free cash flow in a range of US$2.1 billion-2.3 billion. Total liquidity sources therefore should equal at least US$4 billion against expected maturities of US$3.9 billion in 2009. Evraz is also in the process of negotiating to extend or refinance a US$1.8 billion loan provided by state-owned bank VEB. Evraz is a vertically integrated steel and mining business with operations based in the Russian Federation, the United States, Canada, Ukraine, the Czech Republic, Italy and South Africa. The company increased its revenue by 58% in FYE08 compared with FYE07 due to the consolidation of newly-acquired assets, which contributed revenue of US$4,468 million, favorable pricing trends in Q1-Q3 2008 and a positive product mix shift. SPETS-STROY-RESURS LLC: Creditors Must File Claims by May 24 ------------------------------------------------------------ Creditors of LLC Spets-Stroy-Resurs (TIN 1121011873) have until May 24, 2009, to submit proofs of claims to: A. Belykh Temporary Insolvency Manager Prospect Dekabristov 43-41 614022 Perm Russia The Arbitration Court of Komi will convene at 11:45 a.m. on Aug. 4, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?29�611/2009. The Debtor can be reached at: LLC Spets-Stroy-Resurs Ukhtinskoe Shosse 35/8 Syktyvkar 167026 Komi Russia TMK OAO: Moody's Downgrades Corporate Family Rating to 'B1' ----------------------------------------------------------- Moody's Investors Service has downgraded the Ba3 Corporate Family Rating for TMK, the Ba3 rating for the US$300 million Loan Participation Notes due 2009 and US$600 million Loan Participation Notes due 2011 to B1. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, downgraded a Aa3.ru national scale credit rating to A2.ru. The outlook was left unchanged at negative. The downgrade reflects worsening global macroeconomic conditions, which negatively affected and would continue to affect the steel industry including production of pipes. Moody's commented that there remains a limited visibility of short-term recovery. Moody's note that the majority of the company's sales is generated with customers in cyclical oil and gas industry, although demand for certain types of tubular products is proved to be more resilient so far than for others. The production of seamless OCTG pipes in Russia, the most profitable part of the company's operations, demonstrates more stable demand pattern while the demand for LD pipes is depressed by delays in construction of large pipeline projects. TMK IPSCO operations in the US, which generated 15% sales volumes in 2008, are severely affected by the current difficult economic environment and reduced oil and gas exploration and production activities. Though present limitations on in demand for tubular goods in the US can also be attributed to de-stocking activities of customers, the demand could remain subdued as the inventories are high with estimation going as high as 10 months supply. The downgrade also reflects the fact that the company has not met Moody's rating guidance for the Ba3 category with very limited potential to come back in line in the intermediate term. Although, Moody's originally stated that Moody's would tolerate temporary increase in leverage above 2.5x EBITDA, weaker operating performance and significant reduction in EBITDA below projected level for 2009-2010 is likely to leave the leverage significantly above these parameters at least until the end of 2010. Moody's notes that the company still has an elevated level of debt, which would need to be reduced over time in order to further alleviate pressure on the rating. In addition, the short-term liquidity situation is under pressure with US$1.4 billion coming due in the next 12 months including a US$300 million Eurobond maturing in September 2009. The agency assumes that the banks will remain supportive by continuing roll- over of short term lines, which constitute the most significant part of the debt coming due in the next 12 months. The company is reportedly discussing refinancing options with a number of banks that should be concluded in the next few weeks and is also working on further improvement of its debt maturity profile together with a gradual reduction in absolute level of debt. Moody's also notes that TMK has two outstanding bonds which include a leverage covenant on which the headroom might tighten significantly over the next few months though the agency emphasizes that the nature of the covenant (ie an incurrence test rather than a maintenance test) provides significant more flexibility to deal with any potential issue. Negative outlook reflects uncertainties related to the status of on-going negotiations with the banks regarding Eurobond 2009 refinancing. Furthermore, continued negative pressure on the industry might further affect the TMK's operating performance in the next 12 months worsening its credit metrics and put a negative pressure on its ability to reduce debt over time. The last rating action was implemented on 23 June 2008, when Moody's confirmed the current rating at Ba3 and changed the outlook to negative. The rating could be downgraded further if the company would not decrease its leverage below 4x with no visibility to move toward 3x in the medium term. TMK is Russia's largest and one of the world's leading manufacturers of value-added steel pipe products for the oil & gas industry. TMK shipped 3.2 million metric tones of pipe products, generated revenues of US$5.7 billion (36.2% increase YoY) and reported EBITDA of US$1.01 billion (11% increase YoY) in 2008. Prior to IPO TMK was fully owned by Mr. Pumpyanskiy. His current shareholding is 74.83%. =============== S L O V E N I A =============== ISTRABENZ: Court Postpones Decision on Bawag Receivership Motion ---------------------------------------------------------------- STA reports that Istrabenz d.d. said in a statement on Thursday that the Koper District Court has postponed a decision on the receivership motion filed by Austrian bank Bawag until the end of June. On April 16, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported that Bawag filed a bankruptcy petition against Istrabenz. Citing local media reports, Reuters disclosed Istrabenz and its affiliated firms owe EUR80 million to Bawag. On April 2, 2009, the TCR-Europe, citing Reuters, reported the company was forced into insolvency after it failed to reach a deal with its creditors over its debt. According to Reuters, Istrabenz and its affiliated firms owe some EUR950 million (US$1.26 billion) to 19 banks. Reuters recalled the company made a net loss of EUR220.8 million (US$294.2 million) in 2008 as a result of falls in the value of its capital investments. Headquartered in Koper, Slovenia, Istrabenz d.d. (ISTRABENZ holdinska druzba, d.d.) -- http://www.istrabenz.si/-- is a parent company of the Istrabenz Group. The Company is responsible for the asset management and supervision of the Group members. Istrabenz d.d. has developed investments in the number of divisions: Energy, which covers the gas business, production and distribution of energy, transshipment and storage of oil derivatives; Tourism, which offers hotel, catering, wellness and congress services; Investments, which deals with advertising, financial services and technical consulting; Food, which markets food products, and Information Technology that provides information support to the companies of the Istrabenz Group. As for December 31, 2007, there were 69 companies in Istrabenz Group. ========= S P A I N ========= SANTANDER EMPRESAS: S&P Adjusts Rating on Class E Notes to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services adjusted its credit rating to 'B-' from 'BB-' on the class E notes issued by Fondo de Titulizacion de Activos Santander Empresas 4. The incorrect rating was due an administrative entry error made on Jan. 23, 2009. The rating was, however, correctly listed in a media release S&P published on Jan. 23 taking rating action on these notes, among others. However, users of RatingsDirect and other information sources who searched on this transaction would have found the incorrect 'BB-' rating. ===================== S W I T Z E R L A N D ===================== BADR AUTOMOBILE: Creditors Must File Proofs of Claim by May 14 -------------------------------------------------------------- Creditors of Badr Automobile GmbH are requested to file their proofs of claim by May 14, 2009, to: Bassem Badr Liquidator Amselweg 50 4528 Zuchwil Switzerland The company is currently undergoing liquidation in Zuchwil. The decision about liquidation was accepted at a shareholders' meeting held on March 23, 2009. BERNARD L MADOFF: Irving Picard Subpoenas UBS AG on Accounts ------------------------------------------------------------ Irving Picard, the bankruptcy trustee liquidating Bernard L. Madoff Investment Securities LLC, has subpoenaed UBS AG, said a report by David Glovin, David Voreacos, and Christopher Scinta at Bloomberg News, citing people familiar with the matter. According to Bloomberg, the source said that Mr. Picard is seeking information about Madoff accounts at UBS. Bloomberg, citing the source, states that Mr. Picard is seeking information about UBS accounts held by several Madoff feeder funds and banks, including Banco Santander SA. Bloomberg quoted UBS spokesperson Karina Byrne as saying, "We have received a third-party subpoena and we are complying." A person familiar with the matter said that Plaza Investments International Ltd. is named in the UBS subpoena, Bloomberg states. Citing Plaza Investments investor and Swiss money manager Notz, Stucki & Cie, Bloomberg says that Plaza Investments placed money with Madoff. Former federal prosecutor Daniel Richman said that Mr. Picard may be seeking to identify funds from which he can clawback assets, Bloomberg relates. Mr. Picard may consult with Florida prosecutors in the UBS case as well as New York prosecutors in the Madoff case, the report states, citing Mr. Richman. Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Mr. Madoff and his investment firm with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were allegedly at least 50 billion. Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. istrict Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. Mr. Madoff, if found guilty of all counts, would be imprisoned for 150 years, but legal experts expect the actual sentence to be much lower and would still be an effective life sentence for the 70- year-old defendant, WSJ notes. Mr. Madoff, WSJ relates, would also face millions of dollars in possible criminal fines. The report says that Mr. Madoff has been free on bail since his arrest on December 11, 2008. There was no plea agreement with Mr. Madoff in which leniency in sentencing might be recommended, the report states, citing prosecutors. BIOTIKI SCHWEIZ: Claims Filing Deadline is May 14 ------------------------------------------------- Creditors of Biotiki Schweiz AG are requested to file their proofs of claim by May 14, 2009, to: Christian Ritter Liquidator A. Emmenegger AG Falknerstrasse 1 4001 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at a general meeting held on March 24, 2009. CASINO RESTAURANT: Creditors' Proofs of Claim Due on May 14 ----------------------------------------------------------- Creditors of Casino Restaurant GmbH are requested to file their proofs of claim by May 14, 2009 to: Casino Restaurant GmbH Ramsenburgweg 5c 9100 Herisau Switzerland The company is currently undergoing liquidation in Herisau. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on March 23, 2009. HOUSE SERVICE: Claims Filing Deadline is May 14 ----------------------------------------------- Creditors of House Service GmbH are requested to file their proofs of claim by May 14, 2009, to: Samuel Hess Liquidator Halbruetiacker 6 4614 Hagendorf Switzerland The company is currently undergoing liquidation in Hagendorf. The decision about liquidation was accepted at the shareholders' meeting held on March 17, 2009. M. + F. TSCHANZ: Creditors Must File Proofs of Claim by May 14 -------------------------------------------------------------- Creditors of M. + F. Tschanz AG are requested to file their proofs of claim by May 14, 2009, to: Juker Andreas Stauffacherstrasse 17 Mail Box 334 3000 Bern 22 Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at a general meeting held on March 24, 2009. SCHOETTLI INTERMETALL: Proof of Claim Filing Deadline is May 14 --------------------------------------------------------------- Creditors of Schoettli Intermetall AG are requested to file their proofs of claim by May 14, 2009, to: Theo Schoettli Liquidator Grieshalde 12 8253 Diessenhofen Switzerland The company is currently undergoing liquidation in Diessenhofen. The decision about liquidation was accepted at an extraordinary general meeting held on Feb. 27, 2009. ============= U K R A I N E ============= AT M-TRADING LLC: Creditors Must File Claims by May 15 ------------------------------------------------------ Creditors of LLC AT M-Trading (code EDRPOU 35370229) have until May 15, 2009, to submit proofs of claim to: LLC PTP Ergofor Insolvency Manager Office 197 Yanvarskogo Vosstaniya St. 3-b 01010 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on Dec. 1, 2008. The case is docketed under Case No. 24/77-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC AT M-Trading Kikvidze St. 18 01010 Kiev Ukraine BAGET-B LLC: Creditors Must File Claims by May 16 ------------------------------------------------- Creditors of LLC Trading House Baget-b (code EDRPOU 31582700) have until May 16, 2009, to submit proofs of claim to: S. Lunkova Insolvency Manager Office 47 Politboytsov str. 5 83054 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company on March 25, 2004. The case is docketed under Case No. 27/18B. The Court is located at: The Economic Court of Donetsk Artem St. 157 Donetsk Ukraine The Debtor can be reached at: LLC Trading House Baget-b Mushketovskaya St. 20-V 83014 Donetsk Ukraine DNEPROSHYNA OJSC Creditors Must File Claims by May 16 ----------------------------------------------------- Creditors of OJSC Dneproshyna Subsidiary Company Trading House Dneproshyna (code EDRPOU 30992704) have until May 16, 2009, to submit proofs of claim to: V. Verbas Insolvency Manager Boris Krotov str. 24 49600 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on March 11, 2009. The case is docketed under Case No. B29/58-09(B15/304-08). The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: OJSC Dneproshyna Krotov St. 24 49600 Dnepropetrovsk Ukraine DNEPROYEL LLC: Creditors Must File Claims by May 16 ---------------------------------------------------- Creditors of LLC Dneproyel (code EDRPOU 33690317) have until May 16, 2009, to submit proofs of claim to S. Ilnitsky, the company's insolvency manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 3, 2009. The case is docketed under Case No. 44/22-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Dneproyel Surikov St. 3 03035 Kiev Ukraine POPOVKA LLC: Creditors Must File Claims by May 16 ------------------------------------------------- Creditors of Agricultural LLC Popovka (code EDRPOU 05525983) have until May 16, 2009, to submit proofs of claim to: N. Alekseyenko Insolvency Manager Office 16 Engels str. 172 18018 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company on March 26, 2009. The case is docketed under Case No. 01/800. The Court is located at: The Economic Court of Cherkassy Shevchenko Boulevard 307 18004 Cherkassy Ukraine The Debtor can be reached at: Agricultural LLC Popovka Popovka Zvenigorodsky 20236 Cherkassy Ukraine =========================== U N I T E D K I N G D O M =========================== ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on notes issued by ALBA 2007-1 PLC. Specifically: -- S&P lowered and removed from CreditWatch negative its ratings on the class A3, B, C, D, and E notes; -- S&P removed from CreditWatch negative and affirmed its ratings on the class A2 notes; -- S&P affirmed its rating on the MERCs. On Oct. 10, 2008, S&P placed all the notes in this transaction on CreditWatch negative. These CreditWatch placements were due to the removal of the liquidity facility after the renewal notice was not delivered under the terms of the liquidity facility agreement and the fact that the liquidity facility expired on or about June 17, 2008. On Jan. 26, 2009, S&P downgraded the class B to E notes following S&P's analysis of the deteriorating collateral performance. The ratings remained on CreditWatch negative due to the continuing absence of a liquidity facility. At that time, S&P understood that the issuer was in negotiations to find a replacement liquidity facility provider. S&P understand that the liquidity facility has, so far, not been replaced. Therefore, S&P has lowered its ratings on the class A3 to E notes taking into account the information S&P has as to the current transaction structure and performance. Were a replacement liquidity facility to be put in place on substantially the same terms and conditions, S&P would expect to consider, all else being equal, raising the ratings to levels reflecting the performance and capital structure at that point. According to the March 2009 investor report, the un-indexed weighted-average current loan-to-value ratio was 84.92%. The transaction closed in June 2007. Between June 2007 and April 2009 the Nationwide house price index indicated a 17.5% fall in U.K. house prices. Therefore, in S&P's opinion, a significant proportion of the pool is now likely to be in negative equity. The reserve fund is at 33% of its required amount after four consecutive reserve fund draws. Cumulative losses increased to 0.95% in March 2009 from 0.57% in December 2008. The current loss severity is 34.4%. S&P believes the reserve fund is likely to be fully drawn in the near future. S&P has affirmed and removed from CreditWatch negative its rating on the class A2 notes because, according to S&P's analysis, they no longer rely on the liquidity facility to pass S&P's 'AAA' stress scenario. The class A1a and A1b notes have redeemed in full. Ratings List ALBA 2007-1 PLC GBP841 Million and EUR190 Million Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A3 AA AAA/Watch Neg B A AA/Watch Neg C BBB A/Watch Neg D BB BBB/Watch Neg E B BB/Watch Neg Rating Affirmed and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A2 AAA AAA/Watch Neg Rating Affirmed MERCs AAA Ratings Withdrawn Rating ------ Class To From ----- -- ---- A1a NR AAA A1b NR AAA NR � Not rated. BUSINESS MORTGAGE: Fitch Junks Ratings on Three Classes of Notes ---------------------------------------------------------------- Fitch Ratings has downgraded 15 tranches and affirmed 36 tranches of the Business Mortgage Finance PLC series and revised the Outlooks on nine tranches: BMF1 (due 2036): -- GBP1.9 million class A notes (XS018220413): affirmed at 'AAA'; Outlook Stable -- Detachable A coupon (XS0186221817): affirmed at 'AAA'; Outlook Stable -- GBP13.8 million class M (XS0186220769): affirmed at 'AAA'; Outlook Stable -- GBP5.3 million class B (XS0186221577): affirmed at 'AA-'; Outlook revised to Stable from Positive -- MERCs (XS0186222468): affirmed at 'AAA'; Outlook Stable BMF2 (due 2037): -- GBP3.0 million class A notes (XS0203851117): affirmed at 'AAA'; Outlook Stable -- Detachable A coupon (XS0203848329): affirmed at 'AAA'; Outlook Stable -- GBP26.7 million class M notes (XS0203851380): affirmed at 'AA'; Outlook Positive -- GBP10.1 million class B notes (XS0203851463): affirmed at 'BBB+'; Outlook revised to Stable from Positive -- MERCs (XS0203846380): affirmed at 'AAA'; Outlook Stable BMF3 (due 2038): -- GBP26.0 million class A1 notes (XS0223481325): affirmed at 'AAA'; Outlook Stable -- Detachable A1 coupon (XS0223483610): affirmed at 'AAA'; Outlook Stable -- EUR27.0 million class A2 notes (XS0223481598): affirmed at 'AAA'; Outlook Stable -- Detachable A2 coupon (XS0223483883): affirmed at 'AAA'; Outlook Stable -- GBP42.5 million class M notes (XS0223481838): affirmed at 'A'; Outlook revised to Stable from Positive -- GBP9.5 million class B1 notes (XS0223482307): affirmed at 'BBB'; Outlook Stable -- EUR8.0 million class B2 notes (XS0223482729): affirmed at 'BBB'; Outlook Stable -- GBP2.5 million class C notes (XS0223483024): affirmed at 'BB'; Outlook revised to Negative from Stable -- MERCs (XS0224878099): affirmed at 'AAA'; Outlook Stable BMF4 (due 2045): -- GBP100.8 million class A (XS0249507947): affirmed at 'AAA'; Outlook Stable -- Detachable A coupon (XS0250410114): affirmed at 'AAA'; Outlook Stable -- GBP41.3 million class M (XS0249508242): affirmed at 'A'; Outlook Stable -- GBP15.0 million class B (XS0249508754): downgraded to 'BB' from 'BBB'; Outlook Negative -- GBP7.3 million class C (XS0249509133): downgraded to 'B' from 'BB'; Outlook Negative -- MERCs (XS0250413563): affirmed at 'AAA'; Outlook Stable BMF5 (due 2039): -- GBP69.7 million class A1 notes (XS0271320060): affirmed at 'AAA': Outlook revised to Negative from Stable -- Detachable A1 coupon (XS0271321035): affirmed at 'AAA': Outlook Stable -- EUR125.5 million class A2 notes (XS0271323163): affirmed at 'AAA': Outlook revised to Negative from Stable -- Detachable A2 coupon (XS0271323676): affirmed at 'AAA': Outlook Stable -- GBP27.0 million class M1 notes (XS0271324724): downgraded to 'BBB+' from 'A'; Outlook Negative -- EUR36.5 million class M2 notes (XS0271324997): downgraded to 'BBB+' from 'A'; Outlook Negative -- GBP12.0 million class B1 notes (XS0271325291): downgraded to 'B+' from 'BB'; Outlook Negative -- EUR11.5 million class B2 notes (XS0271325614): downgraded to 'B+' from 'BB'; Outlook Negative -- GBP8.7 million class C notes (XS0271326000): downgraded to 'CC' from 'B'; assigned a Recovery Rating of 'RR5' -- MERCs (XS0271326778): affirmed at 'AAA': Outlook Stable BMF6 (due 2040): -- GBP87.0 million class A1 notes (XS0299445808): affirmed at 'AAA', Outlook revised to Negative from Stable -- Detachable A1 coupon (XS0299535384): affirmed at 'AAA': Outlook Stable -- EUR329.0 million class A2 notes (XS0299446103): affirmed at 'AAA': Outlook revised to Negative from Stable -- Detachable A2 coupon (XS0299536515): affirmed at 'AAA': Outlook Stable -- GBP38.0 million class M1 notes (XS0299446442): downgraded to 'BBB' from 'A'; Outlook Negative -- EUR55.6 million class M2 notes (XS0299446798): downgraded to 'BBB' from 'A'; Outlook Negative -- EUR39.1 million class B2 notes (XS0299447507): downgraded to 'B' from 'BBB'; Outlook Negative -- GBP17.3 million class C notes (XS0299447846): downgraded to 'CC' from 'B'; assigned a Recovery Rating of 'RR5' -- MERCs (XS0300896775): affirmed at 'AAA': Outlook Stable BMF7 (due 2041): -- GBP172.5 million class A1 notes (XS0330211359): affirmed at 'AAA': Outlook revised to Negative from Stable -- Detachable A1 coupon (XS0330212597): affirmed at 'AAA': Outlook Stable -- GBP38.7 million class M1 notes (XS0330220855): downgraded to 'BBB' from 'A'; Outlook Negative -- EUR5.0 million class M2 notes (XS0330222638): downgraded to 'BBB' from 'A'; Outlook Negative -- GBP12.4 million class B1 notes (XS0330228320): downgraded to 'BB-' from 'BBB'; Outlook Negative -- GBP7.9 million class C notes (XS0330229138): downgraded to 'CCC' from 'BB'; assigned a Recovery Rating of 'RR5' -- MERCs: affirmed at 'AAA': Outlook Stable C.P.S. LAND: Appoints Liquidator from Tenon Recovery ---------------------------------------------------- Duncan R. Beat of Tenon Recovery was appointed liquidator of C.P.S. Land and New Homes Ltd. on April 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: 75 Springfield Road Chelmsford Essex CM2 6JB England CASTLELEIGH HOLDINGS: Placed Into Administration ------------------------------------------------- David Doyle at Property Week reports that Castleleigh Holdings Ltd, the developer and owner of Charters, a luxury residential development near Ascot, has been placed into administration after running into financial difficulties because of the downturn. PricewaterhouseCoopers has been appointed administrator of the company, the report discloses. The report relates PricewaterhouseCoopers said 15 apartments have been sold in the 34-apartment Charters scheme. "Our immediate priority, upon appointment, is to go through a period of stabilization to ensure that the needs of the current owners and residents are properly addressed and the small amount of remaining work is completed quickly and efficiently," the report quoted Barry Gilbertson, partner in the distressed property team at PricewaterhouseCoopers, as saying. "We will then bring the remaining 19 apartments to the market, while managing the estate to optimize the amenities for the benefit of current and future owners in what must be one of the most desirable locations in the home counties." CHERRY MOVE: Appoints Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of Cherry Move Ltd. on April 21, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England CNP: Placed Into Administration; Buyer Sought for Business ---------------------------------------------------------- Building's Emily Wright reports that building consultant CNP has been placed into administration. Zolfo Cooper is handling the administration, the report discloses. According to the report, a number of rival consultants are considering making a bid for the company, which posted a turnover of GBP14.5 million last year. The report relates in a letter sent to clients on Tuesday the company said "suitors are sought for all, or parts of the business". The report recalls CNP's parent group, LandAmerica, filed for Chapter 11 Bankruptcy in November last year and refused to accept CNP's proposal for a management buyout. CNP -- http://www.cnpltd.co.uk/-- is a building and project consultancy specializing in all aspects of building surveying, project management, quantity surveying, construction technology, sustainability and energy services. The company offices throughout the United Kingdom, Ireland and Europe. CORNERSTONE TITAN: Fitch Junks Ratings on Three Classes of Notes ---------------------------------------------------------------- Fitch Ratings has downgraded eight classes of Cornerstone Titan 2006-1 Plc's notes, due 2015, and affirmed the class A and class X notes: -- GBP364.7 million class A (XS0262023459) affirmed at 'AAA'; Outlook revised to Negative from Stable -- GBP0.1 million class X (XS0262023707) affirmed at 'AAA'; Outlook Stable -- GBP49.6 million class B (XS0262023962) downgraded to 'AA-' from 'AAA'; Outlook revised to Negative from Stable -- GBP20.1 million class C (XS0262024184) downgraded to 'A' from 'AA'; Outlook Negative -- GBP25.4 million class D (XS0262024424) downgraded to 'BBB' from 'AA'; Outlook Negative -- GBP20.6 million class E (XS0262025157) downgraded to 'BB' from 'A'; Outlook Negative -- GBP28.3 million class F (XS0262025405) downgraded to 'B' from 'BBB'; Outlook Negative -- GBP12.5 million class G (XS0262025744) downgraded to 'CCC' from 'BBB-'; assigned a 'RR4' Recovery Rating -- GBP5.0 million class H (XS0262026551) downgraded to 'CCC' from 'BB'; assigned a 'RR5' Recovery Rating -- GBP3.1 million class J (XS0262027104) downgraded to 'CCC' from 'B'; assigned a 'RR5' Recovery Rating The downgrades reflect the impact of deteriorating UK property market conditions on the creditworthiness of the outstanding loans in the transaction. The loans secured by non-prime assets in secondary locations are particularly impacted. This is reflected in the weighted average Fitch A-note LTV of 102.3% compared to a reported A-note LTV of 72.7%, implying a WA market value decline of 29% since origination. The transaction consists of nine commercial mortgage loans. Since closing, property disposals, partial prepayments and a small amount of scheduled amortization have resulted in a reduction of the pool balance to GBP529.2 million from GBP564.1 million. The loans are secured by a mixture of assets across the UK and the Channel Islands with a large concentration in office properties (81% by market value, MV) and the London area (75% by MV). Three of the loans -- Lloyds Chambers, Argos Distribution and Woolgate Exchange (71% of the pool) -- have subordinated B-note tranches that significantly increase the whole loan LTV ratios. The reported performance of the largest loan, the Woolgate Exchange Loan (45.4% of the loan pool), remains broadly unchanged since closing. The loan is secured on a Grade A office property in the City of London, which is single-let to West LB AG ('A-'/'F1'/Stable) with an unexpired lease term of 11.7 years. The loan has a current reported interest coverage ratio of 1.16x. Fitch estimates a MVD of 32.1% since closing, and the current Fitch A-note LTV stands at 106.2% compared to the reported A-note LTV of 72.1%. On a whole loan basis, Fitch estimates an LTV of 120.3%, and the existence of a B-note tranche reduces the chances of an orderly payoff at loan maturity in July 2011. The Peacock Place loan (2.5% of the pool), which is secured by a secondary shopping centre located in Northampton, is currently in special servicing. Multiple retailer administrations, evidenced by a spike in vacancy levels to 41% from 11% at closing, have resulted in the borrower being unable to make the full interest payment due at the April 2009 IPD and the loan was subsequently transferred to special servicing. The special servicer, Capmark Services UK Limited ('CSS2'/Rating Watch Negative), intends to accelerate the loan and appoint an LPA (Law of property Act 1925) receiver over the property to control the collection of rental income and the management of the property. The significant widening in yields for secondary retail assets, combined with the deteriorating income profile of the centre, results in a Fitch LTV of 117.5% compared to a reported LTV of 79.6%, suggesting a sizeable MVD of 32.3% since closing. Income levels for the Argos Distribution Centre, Capital House, Regency Court and Aldermanbury Square loans (29.1% of the pool) have remained broadly unchanged since closing. Fitch LTVs range between 90% and 110%, resulting in below-average MVDs ranging between 15% (for the Regency Court loan) and 30% (for the Argos Distribution Centre loan). This is mainly driven by the prime nature of the collateral, the good covenant strength of the tenants and/or the relatively long unexpired lease terms. Fitch will continue to monitor the performance of the transaction. DIGITAL RIGHTS: Taps Joint Liquidators from Tenon Recovery ---------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint liquidators of Digital Rights Management Ltd. on April 17, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England ELLIOT HOLDINGS: Taps Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Nigel Ian Fox and Andrew James Pear of Tenon Recovery were appointed joint liquidators of The House Of Elliot Holdings Ltd. on April 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England ELISION HEALTH: Appoints Liquidators from Smith & Williamson ------------------------------------------------------------ Robert William Leslie Horton and James Douglas Ernle Money of Smith & Williamson Limited were appointed joint liquidators of Elision Health Ltd. on March 20, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Smith & Williamson Limited at: No. 1 Bishops Wharf Walnut Tree Close Guildford Surrey GU1 4RA England FLEET STREET: Fitch Affirms Rating on Class E Notes at 'BB+' ------------------------------------------------------------ Fitch Ratings has affirmed Fleet Street Finance One Plc's commercial mortgage-backed floating rate notes, due 2014: -- GBP66.5 million class A (XS0224564236): affirmed at 'AAA'; Outlook Stable -- GBP10.8 million class B (XS0224564582): affirmed at 'AA+'; Outlook Stable -- GBP10.2 million class C (XS0224565043): affirmed at 'AA'; Outlook Stable -- GBP10 million class D (XS0224565126): affirmed at 'BBB+'; Outlook Negative -- GBP10.4 million class E (XS0224565639): affirmed at 'BB+'; Outlook Negative While the collateral has not been re-valued since December 2004, Fitch estimates its market value has only slightly deteriorated since then, resulting in a Fitch loan-to-value ratio of 57.1% compared to a reported LTV of 47.2%. The loan benefits from scheduled amortization leading to a reported exit LTV of 45.8%. The Negative Outlooks on classes D and E reflect the volatile nature of the income of the remaining loan, which is secured by 14 hotel properties scattered around the UK, and the negative market outlook for the UK lodging industry. They also reflect Fitch's concern about current difficult lending conditions ahead of the approaching loan maturity in February 2010. This could make it difficult for the loan to be re-financed despite its moderate LTV. Taking into account the sale of 14 hotels, the remaining assets' net operating income is broadly the same as it was at closing, highlighted by a virtually unchanged interest coverage ratio of 2.67x. However, in Q109 NOI has dropped sharply from its peaks reached between 2007 and mid-2008, mainly driven by a significantly reduced occupancy rate (57.1% vs. 66.3% in Q108 and 67.9% in Q107). Furthermore, Fitch considers this cash flow to be much more volatile than for standard leased properties and believes it may be more severely affected by the current economic downturn, given the expected reduction in demand for accommodation. Fitch will continue to monitor the performance of the transaction. G A DEVELOPMENT: Calls in Liquidator from Tenon Recovery -------------------------------------------------------- Andrew Appleyard of Tenon Recovery was appointed liquidator of G A Development Ltd. on April 20, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Sixth Floor The White House 111 New Street Birmingham B2 4EU England GEMINI PLC: Fitch Corrects May 6 Rating Press Release ----------------------------------------------------- This comment corrects the version issued. It verifies that the class C, D and E notes do not have Outlooks. The corrected comment follows. Fitch Ratings has downgraded Gemini (Eclipse 2006-3) plc's five classes of notes, due July 2016: -- GBP569.15 million class A due July 2016 (XS0273575107): downgraded to 'BBB-'(BBB minus) from 'AAA'; Outlook revised to Negative from Stable -- GBP27.76 million class B due July 2016 (XS0273576289): downgraded to 'BB' from 'AAA'; remains on Outlook Negative -- GBP101.8 million class C due July 2016 (XS0273576446): downgraded to 'CCC' from 'A'; assigned a Recovery Rating of 'RR5' -- GBP81.4 million class D due July 2016 (XS0273576792) downgraded to 'CC' from 'BBB'; assigned a Recovery Rating of 'RR6' -- GBP70.21 million class E due July 2016 (XS0273576958): downgraded to 'CC' from 'BB'; assigned a Recovery Rating of 'RR6' The notes issued by Gemini (Eclipse 2006-3) plc are secured against a GBP850.4 million interest-only senior loan originated in November 2006 by Barclays Bank PLC ('AA'/'F1+'/Stable). In combination with a GBP105.8 million junior loan, the securitized loan is secured against a portfolio of 35 generally secondary quality properties. The loans breached their LTV covenants in July 2008 as a result of a downward revaluation of the properties, and were subsequently transferred into special servicing, where they have remained since. The last revaluation of the collateral, in September 2008, reported a value of GBP801.4 million, and a senior LTV of 106.1%. The momentum of generally falling values has continued since then and Fitch presently estimates the current market value at GBP627 million, and a Fitch senior LTV of 135%. The properties are shopping centres and offices located around the UK, with some exposure to logistics and retail warehouses. Although income is fairly stable and granular, in a handful of retail properties vacancy rates are rising or remain excessively high, which may prove difficult to reverse. Overall vacancy rates have fallen, although not enough to prevent the interest coverage ratio from declining as rental top up payments gradually roll off in accordance with a set quarterly schedule agreed at closing. There are two borrower-level interest rate swaps which are both due to mature in July 2026, 10 years after loan maturity and seven years after bond legal maturity. Recent falls in swap rates have precipitated a negative mark-to-market amount of GBP113 million in total (as of April 14), and since this amount ranks prior to the notes, it represents an increase in the leverage of all the notes. Including this liability, Fitch's calculation for the senior MTM LTV rises above 150%. Although the MTM amount may decline as the swaps' duration falls over time, the long-datedness of the swaps means that unless applicable rates rise, a material MTM amount would be payable out of loan recovery proceeds before principal is repaid to noteholders, irrespective of the timing of a potential liquidation. At present, there is a combination of low swap rates and high property yields. Although in such an environment the long duration of the swaps reduces the flexibility available to the servicer, the prospect of the "yield gap" narrowing over time, either as swap rates rise or property yields fall, may encourage the servicer to hold off from liquidation and allow the duration of the swap to decline. The granularity and quality of income, coupled with a relatively benign lease break profile, ought to facilitate this and are therefore moderating forces in Fitch's rating action. Servicing is currently being managed by CB Richard Ellis Loan Servicing Limited. This operation, which has a Primary Servicer Rating of 'CPS3+UK', replaced Barclays Capital Mortgage Servicing ('CPS2UK') in April 2009. Although Fitch has not assigned a UK Special Servicer Rating to CBRELS, the agency conducted a review of its special servicing capabilities, which it deemed sufficient for this transaction. The servicing transfer does not have any immediate impact on ratings. IMPACT STAFF: Appoints Joint Liquidators from Tenon Recovery ------------------------------------------------------------ Nigel Ian Fox of Tenon Recovery and Andrew James Pear of Tenon Recovery were appointed joint liquidators of Impact Staff Ltd. on April 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England LANDMARK MORTGAGE: S&P Puts 'BB'-Rated Class D Notes on Neg. Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on the class B, C, and D notes issued by Landmark Mortgage Securities No.1 PLC. These CreditWatch placements follow S&P's initial review of the most recent loan-level data and transaction report S&P received for this transaction. This analysis was a direct result of the reserve fund draw the transaction experienced on its March payment date and its increasing arrears and losses. The last payment report showed that over a six-month period (September 2008 to March 2009) 90+ days arrears have risen to 34.13% from 13.93% with total arrears hitting 48.67% from 29.76% (both measures include repossessions). S&P notes that some of these increases may be due to technical movements between arrears buckets. Cumulative losses have now reached 1.10% of the original note balance, up from 0.59% six months ago. S&P expects this number to increase due to the high number of 90+ day arrears and 5.14% of the mortgages currently in repossession. S&P's calculations show that the transaction currently has an average loss severity of 25.00%; however, the March 2009 report indicated a loss severity of 39.91% with the December 2008 report indicating a 32.08% loss severity. Both arrears and losses for LMS 1 are trending above S&P's nonconforming index, and have increased sharply over recent months. The transaction is also performing worse than the index for the 2006 vintage. This can be seen in S&P's most recent index report. S&P has conducted its analysis in line with S&P's U.K. residential mortgage-backed securities criteria. S&P will now conduct further credit and cash flow analysis, to resolve the CreditWatch placements once S&P has received the April loan-level data. The notes, issued in 2006, are backed by a portfolio of first- ranking residential mortgages secured over properties in the U.K. The mortgage loans were originated by Unity Homeloans Ltd., Infinity Mortgages Ltd., and Amber Homeloans Ltd. and subsequently purchased by Investec Bank (UK) Ltd. Ratings List Ratings Placed on CreditWatch Negative Landmark Mortgage Securities No.1 PLC EUR105.2 Million and GBP127.1 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A/Watch Neg A Ca BBB/Watch Neg BBB Cc BBB/Watch Neg BBB D BB/Watch Neg BB NCS SUPPLIES: Appoints Joint Liquidators from Grant Thornton ------------------------------------------------------------ Joseph P. McLean and Keith Hinds of Grant Thornton UK LLP were appointed joint liquidators of NCS Supplies Ltd. on March 13, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Grant Thornton UK LLP at: Earl Grey House 75-85 Grey Street Newcastle upon Tyne NE1 6EF England PANORAMIC PRESENTATIONS: Brings in Liquidators from Tenon Recovery ------------------------------------------------------------------ Christopher Benjamin Barrett and Christopher Ratten of Tenon Recovery were appointed joint liquidators of Panoramic Presentations Ltd. on April 14, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Clive House Clive Street Bolton BL1 1ET England PREMIUM 1ST: Taps Liquidator from Grant Thornton ------------------------------------------------ Ian Carr of Grant Thornton UK LLP was appointed liquidator of Premium 1ST Ltd. on April 21, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Grant Thornton UK LLP at: Byron House Cambridge Business Park Cambridge CB4 0WZ England TAYLOR WIMPEY: Raising GBP510 Million to Cut Debt ------------------------------------------------- Scott Hamilton at Bloomberg News reports Taylor Wimpey Plc Chief Executive Officer Peter Redfern said the company will raise GBP510 million (US$766 million) selling shares as a "last major step" in its refinancing process. According to the report, the homebuilder will raise gross proceeds of GBP266 million by selling new shares to existing shareholders and another GBP266 million by placing stock with new investors. The shares in both transactions will be priced at 25 pence apiece, the report says. The report relates Taylor Wimpey will use the proceeds to pay down debt, cutting costs by GBP425 million through 2011 after a refinancing agreement in April committed Taylor Wimpey to reducing borrowings or facing higher interest payments. GBP1.57 Billion Debt Refinancing As reported in the Troubled Company Reporter-Europe on May 4, 2009, Graham Ruddick at Telegraph.co.uk said Taylor Wimpey's Eurobond holders approved the refinancing of its GBP1.57 billion of debt. According to Telegraph.co.uk, the new deal reduces the risk of a breach of covenants and encourages Taylor Wimpey to raise more than GBP350 million in new equity. Anita Likus of Dow Jones Newswires said the deal includes punitive potential coupons should the company fail to repay chunks of its debt. Dow Jones said Taylor Wimpey remains cautious about a significant recovery in the housing market in the short term, despite encouraging trading in the first few months of the year, as it expects the ongoing economic uncertainty to further impact on consumer confidence. The company, Dow Jones disclosed, booked net loss of GBP1.84 billion last year while net debt stood at GBP1.52 billion. Dow Jones noted the company's net loss was hit by exceptional items of GBP1.89 billion including write downs, impairment of good will and other intangible assets. The average value of the company's UK home fell by 11pc and sales volumes dried up, Telegraph.co.uk said. Telegraph.co.uk said Mr. Redfern told The Daily Telegraph the downward pressure on house prices has been exacerbated amid the financial crisis by valuers not judging properties on their present value, but prejudging future falls. He also warned that some lenders, including banks, have pressurized valuers in an attempt to limit the mortgage they provide on a home, Telegraph.co.uk said. About Taylor Wimpey Taylor Wimpey plc -- http://www.taylorwimpey.com-- is a homebuilding company with operations in the United Kingdom, North America, Spain and Gibraltar. The Company has 34 regional businesses and five smaller satellite operations. It operates two core brands: Bryant Homes and George Wimpey. The George Wimpey brand incorporates modern design and contemporary living into each home and offers customers a range of options to personalize their home. Its Gibraltar business operates in the luxury apartment market. The Company operates in five divisions: Housing United Kingdom, Housing North America, Housing Spain and Gibraltar, Construction and Corporate. On July 3, 2007, George Wimpey PLC merged with Taylor Woodrow plc to create Taylor Wimpey plc. In September 2008, the Company announced the sale of the United Kingdom business of Taylor Woodrow Construction to VINCI PLC. * * * As reported in the Troubled Company Reporter-Europe on May 7, 2009, Fitch Ratings changed the Rating Watch on Taylor Wimpey plc's Long-term Issuer Default rating and senior unsecured 'CCC' ratings and Short-term 'C' IDR to Positive from Negative. TRIANGLE COMPUTER: Brings in Joint Liquidators from Tenon Recovery ------------------------------------------------------------------ Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of on , for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England VEDANTA RESOURCES: Pre-Tax Profits for Yr. Ended March 31 Down 57% ------------------------------------------------------------------ Garry White at Telegraph.co.uk reports that Vedanta Resources plc's pre-tax profits in the 12-month period to March 31 fell 57% to US$1.2 billion as commodity prices tumbled in the second half of the year. The report relates the company's revenues declined 20% to US$6.58 billion (GBP4.4 billion). Vedanta, the report discloses, has US$4.9 billion in cash on its balance sheet while net debt stood at US$200 million after a US$2 billion-plus bond sale to cover investment in capacity extensions over the period. According to the report, the company is cash generative with free-cash flow of US$1.7 billion. The company's final dividend of 25 cents per share will be paid on August 5, the report says. The report notes shareholders can receive the dividend in sterling at a pre-determined exchange rate, which equates to 16.7p a share. About Vedanta Resources plc Headquartered in London, Vedanta Resources plc -- http://www.vedantaresources.com/-- operates in business segments that consist of aluminium, copper, zinc and iron ore, with residual components being reported as other (mainly energy and gold). The Company's operations are located in India, Zambia and Australia. On April 23, 2007, Vedanta acquired Finsider International Company Limited (Finsider), an investment holding company. In September 2007, the Company, through one of its subsidiaries, sold all of the interest it held in Twin Star International. * * * As reported in the Troubled Company Reporter-Europe on Dec. 26, 2008, Moody's Investors Service downgraded to Ba1 from Baa3 the corporate family rating of Vedanta Resources plc. Concurrently, Moody's downgraded to Ba2 from Ba1 the company's senior unsecured rating. Moody's said the outlook on the ratings is stable. * Fitch Says UK Homebuilding Sector May Be Slower to Recover ------------------------------------------------------------ Fitch Ratings says the expected continuation of weak market conditions in the UK housing market will restrict the pace at which the UK homebuilding sector can de-leverage. The agency therefore expects that it will take indebted housebuilders a significant length of time to repair their strained credit profiles. As a result the sector may be slower to recover -- from a credit perspective -- than other industries once general economic conditions improve, especially compared to industries with inherently less leverage and better trading prospects. Over the past nine months a number of indebted UK homebuilders, such as Taylor Wimpey plc (rated 'CCC' / Rating Watch Positive), Barratt Development plc and Persimmon plc, have successfully averted short-term liquidity problems by refinancing debt and/or amending financial covenants. With their immediate financial concerns now seemingly resolved, many homebuilders are now in the midst of a significant de-leveraging process as they attempt to adapt to the more austere conditions, notably by reducing excessive debt levels built up following over-priced land acquisitions during the boom years of the early- and mid-2000s. However, de-leveraging is likely to be a slow process. "Poor market conditions, along with shrinking asset bases and uncertain prospects for land disposals and equity issuance, will likely result in cash flows at indebted homebuilders remaining relatively weak during at least 2009 and 2010," said Ewan Macaulay, Associate Director in Fitch's EMEA Construction & Property team. "This will reduce homebuilders' ability to pay down debt, and therefore the repairing of credit profiles in this sector could take a number of years." Fitch expects weak conditions in the UK housing market to persist until at least end-2010, and possibly later. Although housing data published in April 2009 indicates that the rate of market deterioration may be slowing, fundamental factors, such as mortgage lending, affordability, and expected unemployment rates, remain weak. Fitch therefore does not expect to see a material recovery in new house sales or prices for a significant length of time, and continues to expect a peak-to-trough UK house price decline of around 30%, possibly stabilizing during 2010. In turn, the agency expects operational cash flows at UK housebuilders to remain weak. Similarly, the market for asset sales, notably land, is also expected to remain soft, which will restrict homebuilders' efforts to de-leverage by way of asset sales. A further problem could emerge from the decision by various homebuilders to reduce land purchases to a bare minimum to preserve near-term liquidity. Although this is supportive of credit profiles over the short-term, it could create medium-term problems as asset bases -- and hence future cash-generating abilities -- shrink significantly as land assets are not replenished. If debt levels do not fall commensurately, and market conditions remain weak, some homebuilders will struggle to generate sufficient cash flow to meet medium-term debt maturities. Fitch also notes that significantly increased cash interest costs, resulting from recent debt amendments, could add to these medium- term cash flow concerns. In response to this risk, some homebuilders, notably Taylor Wimpey, are looking to raise new equity. Additional equity would likely be positive for the credit profiles of UK housebuilders, as it would help provide sufficient capital to invest in land assets (and therefore ensure the long-term viability of the business) as well as reducing debt. However, the quantum of new equity that could be raised by the sector remains questionable, especially given the depressed market capitalizations across the sector. Fitch currently rates Taylor Wimpey on a public basis and four UK homebuilders on a shadow basis. Aggregated gross debt for these entities totaled approximately GBP5 billion as of Dec. 31, 2008. * UK: Insolvencies in Advertising Sector Up 62% in First Qtr. 2009 ------------------------------------------------------------------ Matt Williams at campaignlive.co.uk reports that insolvencies in the UK advertising sector increased 62 per cent in the first quarter of 2009, with nearly 70 agencies going under. Citing a report from PricewaterhouseCoopers, campaignlive.co.uk discloses broadcasting insolvencies reached 20 in the first quarter of this year, compared with the 11 in the first quarter of 2008, while traditional media advertising is also in double-digit decline. "Last year represented the advertising world's Big Bang, as we saw a collision of severe economic downturn and structural change to online. In this world, grabbing and monetising consumer attention is harder than ever," campaignlive.co.uk quoted David Lancefield, a partner at PricewaterhouseCoopers, as saying. * UK Hotel Sector Continues to Suffer in 1Q09, Deloitte Says ------------------------------------------------------------ Deloitte, the business advisory firm, has confirmed that the hotel industry continued to suffer during the first quarter of 2009 with a sharp decline in leisure and corporate travel. UK cities overall experienced a decline in revenue per available room (revPAR) by an average of GBP5 (9%). Despite this, monthly declines were less extreme in March, down 5.2% when compared to a 10.8% drop year-to-February 2009. On the surface this seems like good news, but with Easter in Q1 2008 and Q2 in 2009, stronger hotel performance was expected. Hotels in London brought up the UK average slightly with a revPAR decline of 8.1%, falling just over GBP7 to GBP82. A 4.8% drop in occupancy was the main culprit while average room rates were not far behind -- down 3.5% to GBP113. Marvin Rust, Hospitality Managing Partner at Deloitte, commenting on the results, said: "The weak pound is one factor helping London hotels perform better than other UK destinations. For those who earn U.S. dollars or Euros, London is less expensive than it has been for a number of years, and therefore tourists are keen to take advantage of this and are helping to fill London hotels." Meanwhile, revPAR drops were more extreme across regional UK, down 10.3% to GBP41. The largest drops were at Gatwick and Heathrow Airports, down 23.5% and 21.9% respectively. BAA reported a 10.1% drop in passengers at UK airports during the first quarter with one of the most dramatic falls at Gatwick -- down 14.6%. Fewer people travelling abroad is resulting in lower demand at airport hotels. Passenger numbers were also down 6.4% at Heathrow accounting for some of the drop off in hotel performance. However, the situation was made worse by the surge in new hotel supply associated with the opening of Terminal 5. Several new budget hotels have opened recently in addition to the 605-room Sofitel London Heathrow. After strong revPAR growth in 2008, when Liverpool played host to the European Capital of Culture celebrations, the city has not been able to maintain this growth and is proving susceptible to the economic downturn with revPAR down 16.0% to GBP43. Glasgow is bucking the trend with revPAR down only 1.7%, the smallest revPAR drop across the UK. With one of the lowest levels of revPAR in the UK at GBP41, the city therefore continues to be an attractive value for money option. Mr. Marvin added: "Reduced consumer and business spending stemming from the global economic downturn continues to challenge the hotel industry and this will be the story until at least the final quarter of 2009. Deloitte's first quarter CFO Survey revealed that cost cutting measures are now almost universal and 95% of CFO's plan to cut, or have already cut, discretionary spending such as travel, hotels, entertainment, and training. More Brits holidaying in the UK this summer and an increase in the number of American and European visitors taking advantage of the weak pound will soften the downturn for hoteliers to a degree. However, we are still looking at considerable revPAR declines for both regional UK and London for the rest of the year." About Deloitte Deloitte - http://www.deloitte.com/-- provides audit, consulting, financial advisory, risk management and tax services to selected clients. Deloitte & Touche LLP is the United Kingdom member firm of DTT. * BOND PRICING: For the Week May 4 to May 8, 2009 ------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Oester Volksbk 5.450 08/02/19 EUR 72.49 Oester Volksbk 4.810 07/29/25 EUR 58.29 Raiff Centrobank 12.00 07/17/09 EUR 71.23 FRANCE ------ Alcatel SA 4.750 01/01/11 EUR 14.88 Alcatel SA 6.380 04/07/14 EUR 73.04 Axa SA 7.130 12/15/20 GBP 74.34 Calyon 6.000 06/18/47 EUR 36.07 Cap Gemini SA 2.500 01/01/10 EUR 51.40 Cap Gemini Soget 1.000 01/01/12 EUR 40.24 Cap Gemini Soget 3.500 01/01/14 EUR 37.52 Cie Fin Foncier 3.880 04/25/55 EUR 73.09 Ciments Francais 4.750 04/04/17 EUR 77.90 Club Mediterrane 4.380 11/01/10 EUR 45.87 CMA CGM 5.500 05/16/12 EUR 57.75 CMA CGM 7.250 02/01/13 USD 48.38 CMA CGM 7.250 02/01/13 USD 38.63 Soc Air France 2.750 04/01/20 EUR 19.37 GERMANY ------- Aaeral Bank AG 5.330 01/29/19 EUR 75.19 Bayerische Lndbk 4.250 10/05/16 EUR 73.84 Bayerische Lndbk 4.500 02/07/19 EUR 66.08 City of Kiev 8.630 07/15/11 USD 52.40 City of Moscow 5.060 10/20/16 EUR 74.72 IRELAND ------- Alfa Bank 8.630 12/09/15 USD 62.41 Alfa Bank 8.640 02/22/17 USD 57.28 Allied Irish Bks 7.880 07/05/23 GBP 72.89 Allied Irish Bks 5.250 03/10/25 GBP 54.19 Allied Irish Bks 5.630 11/29/30 GBP 46.69 Ardagh Glass 7.130 06/15/17 EUR 71.50 Ardagh Glass 7.130 06/15/17 EUR 70.96 Banesto Finance 6.120 11/07/37 EUR 6.12 Bank of Ireland 4.880 01/22/18 GBP 69.19 Bank of Ireland 4.630 02/27/19 EUR 55.04 Bank Soyuz 9.380 02/16/10 USD 87.48 ITALY ----- Cartesio S.r.l 6.020 03/07/33 USD 72.88 Cir SpA 5.750 12/16/24 EUR 64.26 LUXEMBOURG ---------- Alrosa Finance 8.880 11/17/14 USD 75.54 Alrosa Finance 8.880 11/17/14 USD 72.69 Bank of Moscow 7.500 11/25/15 USD 68.42 Bank of Moscow 6.810 05/10/17 USD 59.08 Beverage Pack 9.500 06/15/17 EUR 70.13 Beverage Pack 9.500 06/15/17 EUR 69.50 Cirsa Capital 7.880 07/15/12 EUR 62.38 Cirsa Capital 7.880 07/15/12 EUR 60.13 Cirsa Fin Lux 8.750 05/15/14 EUR 56.88 Cirsa Fin Lux 8.750 05/15/14 EUR 53.03 Globus Capital 8.500 03/05/12 USD 46.43 NETHERLANDS ----------- ABN Amro Bank NV 6.000 03/16/35 EUR 56.11 Achmea Hypobk 4.300 04/03/24 EUR 72.32 Achmea Hypobk 4.000 12/27/24 EUR 68.67 Aegon NV 6.130 12/15/31 GBP 64.66 Air Berlin Finan 1.500 04/11/27 EUR 34.91 ALB Finance BV 9.000 11/22/10 USD 17.49 ALB Finance BV 9.750 02/14/11 GBP 16.49 ALB Finance BV 8.750 04/20/11 USD 16.46 ALB Finance BV 7.880 02/01/12 EUR 14.49 ALB Finance BV 9.250 09/25/13 USD 14.99 ALB Finance BV 9.250 09/25/13 USD 14.95 ASML Holding NV 5.750 06/13/17 EUR 76.50 ATF Capital BV 9.250 02/21/14 USD 54.80 Bk Ned Gemeenten 0.500 06/27/18 CAD 69.43 Bk Ned Gemeenten 0.500 02/24/25 CAD 45.83 BLT Finance BV 7.500 05/15/14 USD 34.37 Cemex Fin Europe 4.750 03/05/14 EUR 61.39 Centercrdt Intl 8.000 02/02/11 USD 64.40 Centercrdt Intl 8.630 01/30/14 USD 52.98 Centercrdt Intl 8.630 01/30/14 USD 48.48 Clondalkin BV 8.000 03/15/14 EUR 40.50 Clondalkin BV 8.000 03/15/14 EUR 42.34 Hit Finance BV 4.880 10/27/21 EUR 71.91 JSC Bank Georgia 9.000 02/08/12 USD 56.71 Turanalem Fin BV 7.880 06/02/10 USD 21.49 Turanalem Fin BV 6.250 09/27/11 EUR 21.47 Turanalem Fin BV 7.750 04/25/13 USD 21.45 Turanalem Fin BV 8.000 03/24/14 USD 21.44 Turanalem Fin BV 8.500 02/10/15 USD 21.44 Turanalem Fin BV 8.250 01/22/37 USD 19.94 ROMANIA ------- Bucharest 4.130 06/22/15 EUR 66.61 SPAIN ----- Abertis Infra 4.380 03/30/20 EUR 79.33 Ayt Cedulas Caja 3.750 06/30/25 EUR 72.29 Bancaja 4.500 04/11/13 EUR 71.32 Bancaja 4.250 05/26/13 EUR 71.75 Bancaja 4.380 02/14/17 EUR 59.96 Cedulas TDA A-6 4.250 04/10/31 EUR 70.82 Comun Auto Canar 3.900 11/30/35 EUR 72.74 UNITED KINGDOM -------------- Abbey Natl Plc 6.500 10/21/30 GBP 80.86 Alfa-Bank CJSC 9.250 07/26/10 USD 55.94 Alfa-Bank CJSC 12.000 08/11/11 USD 70.00 Alliance&Leic Bld 5.250 03/06/23 GBP 70.14 Alliance&Leic Bld 5.880 08/14/31 GBP 71.81 Alpha Credit Grp 2.940 03/04/35 JPY 61.25 Amlin Plc 6.500 12/19/26 GBP 66.11 Anglian Wat Fin 2.400 04/20/35 GBP 47.27 Annes Gate Ppty 5.660 06/30/31 GBP 71.42 Arsenal Sec 5.140 09/01/29 GBP 67.95 Ashtead Holdings 8.630 08/01/15 USD 65.38 Ashtead Holdings 8.630 08/01/15 USD 64.63 Aspire Defence 4.670 03/31/40 GBP 64.57 Aspire Defence 4.670 03/31/40 GBP 64.03 Aviva Plc 5.250 10/02/23 EUR 56.91 Aviva Plc 6.880 05/22/38 EUR 61.69 Azovstal 9.130 02/28/11 USD 69.76 Barclays Bk Plc 11.650 05/20/10 USD 48.65 Barclays Bk Plc 5.750 09/14/26 GBP 70.17 Barclays Bk Plc 6.330 09/23/32 GBP 71.11 Beazley Group 7.250 10/17/26 GBP 62.55 BL Super Finance 5.270 07/04/25 GBP 71.18 BL Super Finance 4.480 10/04/25 GBP 74.43 BL Super Finance 5.580 10/04/25 GBP 70.77 Bradford&Bin Bld 7.630 02/16/10 GBP 10.00 Bradford&Bin Bld 4.250 05/04/16 EUR 79.18 Bradford&Bin Bld 5.750 12/12/22 GBP 14.75 Bradford&Bin Bld 6.630 06/16/23 GBP 12.88 Bradford&Bin Bld 4.910 02/01/47 EUR 59.73 Brit Insurance 6.630 12/09/30 GBP 58.53 British Airways 8.750 08/23/16 GBP 73.50 British Land Co 5.360 03/31/28 GBP 71.56 British Land Co 5.260 09/24/35 GBP 68.23 British Tel Plc 5.750 12/07/28 GBP 69.63 British Tel Plc 6.380 06/23/37 GBP 70.06 Britannia Bldg 5.750 12/02/24 GBP 61.98 Britannia Bldg 5.880 03/28/33 GBP 55.54 Brixton Plc 6.000 12/30/10 GBP 69.96 Brixton Plc 5.250 10/21/15 GBP 39.98 Brixton Plc 6.000 09/30/19 GBP 49.88 Broadgate Finance 4.850 04/05/31 GBP 71.94 Broadgate Finance 5.000 10/05/31 GBP 67.23 Broadgate Finance 5.100 04/05/33 GBP 54.36 Broadgate Finance 4.820 07/05/33 GBP 69.84 Cattles Plc 7.880 01/17/14 GBP 9.48 Cattles Plc 8.130 07/05/17 GBP 7.50 CGNU Plc 6.130 11/16/26 GBP 58.39 City of Kiev 8.250 11/26/12 USD 47.49 City of Kiev 8.000 11/06/15 USD 39.75 Clerical Med Fin 6.450 07/05/23 EUR 50.06 Prudential Bank 6.880 12/29/21 GBP 71.59 ********* 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. 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