/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090514.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 Thursday, May 14, 2009, Vol. 10, No. 94 Headlines A U S T R I A HYPO GROUP: Commission Opens In-Depth Probe Into Aid Package KORNMUELLER GMBH: Claims Registration Period Ends May 19 MASSMOEBEL GMBH: Claims Registration Period Ends June 10 PATRICK SCHWARZ : Claims Registration Period Ends May 25 RAMADANI KG: Claims Registration Period Ends May 20 B E L G I U M FORTIS BANK: Commission Approves Additional Aid Measures F R A N C E BANQUE POPULAIRE: Commission Okays EUR2.45 Bln Capital Injection CAISSE D'EPARGNE: Commission Authorizes Further Capital Injection MATERIS: Extends Loan Waiver; Wants to Avoid Debt Restructuring * FRANCE: Refinancing Scheme for Credit Institutions Extended G E R M A N Y ADVENIDAS GMBH: Claims Registration Period Ends June 5 ALGEPA PALETTEN: Claims Registration Period Ends June 9 ALPIN BAU: Claims Registration Period Ends June 2 ARCHIMEDES SOLAR: Claims Registration Period Ends June 2 BAYERNLB: Commission Opens In-Depth Probe Into Aid Package DRESDNER BANK: Moody's Withdraws 'E+' FSR Following Merger GENERAL MOTORS: RHJ Int'l Mulls Bidding for European Units HYPO REAL ESTATE HOLDING: Commission Opens In-Depth Probe Into Aid P O P P GMBH: Claims Registration Period Ends May 25 PREMA EDV: Claims Registration Period Ends June 2 PROMISE-I MOBILITY: Moody's Junks Rating on Class E 2005-2 Notes SCANITA GMBH: Claims Registration Period Ends June 22 TALLYGENICOM LP: German Unit, Printronix Agree on Sale TOUCH STONE: Claims Registration Period Ends June 16 WESTLB: European Commission Approves EUR5 Billion Risk Shield WITTE GMBH: Claims Registration Period Ends June 3 * GERMANY: Finance Ministry Proposes Toxic Assets-Bonds Swap I R E L A N D ANGLO IRISH: Increases Bad-Debt Estimate for 2009 to EUR4.3 Bln ANGLO IRISH: EU Commissions Approves EUR1.5 Bln Recapitalization CAIRN EURO: S&P Puts BB- Rating on Class C Notes on Watch Negative KESTREL FUNDING: S&P Lowers Rating on Income Notes to 'CC' I T A L Y CHRYSLER LLC: To Be Headed by Fiat CEO After Bankruptcy CHRYSLER LLC: Court Approves Fiat-Led Sale Process for All Assets FIAT SPA: To Select Chrysler Dealers for New Company SEAT PAGINEGIALLE: S&P Affirms 'BB-' LT Corporate Credit Rating * Moody's Cuts Issuer Ratings on Italy's City of L'Aquila to 'Ba1' K A Z A K H S T A N A & CONSULTING LLP: Creditors Must File Claims by June 12 KARATEK LLP: Creditors Must File Claims by June 12 KAZAKHTELECOM: S&P Changes Outlook to Negative; Holds 'BB' Rating KAZMUNAIGAS JSC: S&P Affirms 'BB+' Corporate Credit Rating KEU RUDNENSKY: Creditors Must File Claims by June 12 NC JSC: S&P Changes Outlook to Stable; Affirms Corporate Ratings NUR AMI: Creditors Must File Claims by June 12 SCAN LLP: Creditors Must File Claims by June 12 * Moody's Changes Outlook on Kazakhstan's 'Ba1' Rating to Negative K Y R G Y Z S T A N REM NUR: Creditors Must File Claims by June 5 L A T V I A PAREX BANKA: Commission Approves Amendments to Latvian Support N E T H E R L A N D S CARLSON WAGONLIT: S&P Cuts LT Corporate Credit Rating to 'B-' METINVEST BV: Moody's Reviews 'B1' Corporate Rating for Downgrade TRONOX INC: Sues Anadarko, Kerr-McGee for Fraudulent Conveyance P O L A N D * POLAND: IMF Approves US$20.58 Billion Arrangement Under FCL R U S S I A ARTSTROY LLC: Creditors Must File Claims by June 24 ISKROM LLC: Creditors Must File Claims by May 24 KANSKIY WOOD-SAWING: Creditors Must File Claims by June 24 S E R B I A & M O N T E N E G R O * SERBIA: EUR250 Million Loan for SMEs Signed S P A I N NOZAR: In Talks With Creditor Banks, Rules Out Administration SANTANDER FINANCIACION: S&P Junks Ratings on Class E Notes S W I T Z E R L A N D CORNIL JSC: Creditors Must File Proofs of Claim by June 2 HOLGI LLC: Claims Filing Deadline is May 29 RUNPACK VERPACKUNGEN: Creditors Have Until June 2 to File Claims SIDEKICK COMPUTER: Claims Filing Deadline is July 2 U K R A I N E INTAR-INVEST LLC: Creditors Must File Claims by May 22 LVOV METALLURGICAL: Creditors Must File Claims by May 23 UKRTECHNOSVIT LLC: Creditors Must File Claims by May 22 VOSTOK 2003: Court Starts Bankruptcy Supervision Procedure * Moody's Cuts Deposit Ratings on 19 Ukrainian Banks to 'B3' * Moody's Cuts Ukraine's Currency Government Bond Ratings to 'B2' * UKRAINE: IMF Approves US$2.8 Bln Disbursement Under SBA U N I T E D K I N G D O M A & J BADMAN: Appoints Joint Liquidators from BDO Stoy ANGLO-WELSH UTILITIES: Brings in Joint Liquidators from BDO Stoy AVANTI AIR: Taps Joint Liquidators from Baker Tilly AXA FUND: Claims Filing Deadline is June 19 BERNARD L MADOFF: May 27 Hearing on UK Unit's Chapter 15 Petition BURLINGTON DIGITAL: Appoints Liquidators from Tenon Recovery CADOGAN BISTROS: Taps Joint Liquidators from Tenon Recovery CENTRAL METAL: Goes Into Administration; 63 Jobs Axed CENTRAL METAL: Business Offered for Sale CITY GENERAL: Policyholders Can File Claims Until Oct. 21 CLEAR PLC: Moody's Withdraws 'Ca' Rating on JPY1 Bil. Notes CRACK BONDING: Taps Joint Liquidators from Smith & Williamson D & P CAIRNS: Appoints Joint Liquidators from Tenon Recovery EBI MANUFACTURING: Business Up for Sale ENTERPRISE INNS: Scraps First-Half Dividend to Repay Debt HIGHLANDS INSURANCE: Scheme Meeting Slated for June 18 INMARSAT HOLDINGS: S&P Puts 'BB-' Debt Rating on Positive Watch JEDBURGH KILTMAKERS: Taps Joint Liquidators from Tenon Recovery NORTHERN ROCK: Commission Extends In-Depth Probe Into UK Aid RADIOSCAPE LTD: Assets Put Up for Sale RED DESIGN: Proofs of Claim Deadline is May 20 ROBERT CULLEN: Bought Out of Administration by Former Owner ROYAL BANK: John Hourican Gains GBP11MM From Share Option Package SAMURAI-SEC LTD: Taps Joint Liquidators from Tenon Recovery SCOTTISH LION: Files Scheme of Arrangement Petition THPA FINANCE: Fitch Puts 'BB' Rating on Class C Notes on Neg Watch UBS AG: Moody's Junks Ratings on Series 6481 Notes from 'Ba2' ULTRALIFE LIMITED: Business Up for Sale W H WESSON: Appoints Joint Liquidators from Tenon Recovery WIRRAL COMMUNITY: Goes Into Administration, LDP Says * Moody's Takes Various Selective Rating Actions on Five UK Banks * IMF Sees European Recovery from Economic Downturn in 2010 * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= HYPO GROUP: Commission Opens In-Depth Probe Into Aid Package ------------------------------------------------------------ The European Commission on Tuesday, May 12, 2009, opened under EC Treaty state aid rules an in-depth investigation into state support measures for German Landesbank BayernLB and its Austrian subsidiary Hypo Group Alpe Adria (HGAA). BayernLB obtained rescue aid in the form of a capital injection of EUR10 billion and a risk shield of EUR4.8 billion, endorsed by the Commission on 18 December 2008. Also in December 2008 HGAA received EUR0.7 billion capital injection from BayernLB. In addition, HGAA received a EUR0.9 billion capital injection from Austria on the basis of the Austrian banking emergency rescue scheme, approved by the Commission in December 2008. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure. Competition Commissioner Neelie Kroes said: "The opening of the in-depth investigation will ensure legal certainty and provide third parties with an opportunity to comment on the measures. I am looking forward to continuing our constructive dialogue with the national authorities in order to find a viable and acceptable solution for the two banks." BayernLB BayernLB is Germany's second largest Landesbank and one of the biggest German banks with a balance sheet total of EUR422 billion in 2008. It is owned by the Free State of Bavaria and the Association of the Bavarian Savings Banks. BayernLB is a commercial bank with regional focus on Germany and selected European countries. It provides banking services in the field of retail banking, corporate clients, money markets and securities as well as other financial services such as leasing. Following the deterioration in the financial and economic environment in the aftermath of the insolvency of Lehman Brothers in September 2008, BayernLB's asset portfolio was downgraded significantly, which, combined with large write-downs on its asset-backed securities (ABS) portfolio, resulted in the need for additional regulatory capital in December 2008. In this context the Free State of Bavaria agreed to strengthen the core capital of BayernLB by an amount of EUR10 billion and to provide a risk shied of EUR4.8 on the ABS portfolio of BayernLB, to prevent further write-downs. The Commission approved these measures on December 18, 2008. In line with this decision, Germany notified on April 29, 2009, a viability strategy for BayernLB. This notification temporarily extends the approval of the EUR10 billion recapitalization and the EUR4.8 billion risk shield until the Commission has finalized its assessment. In addition to the measures by the Free State of Bavaria, in December 2008 the German Financial Markets Stabilisation Fund (SoFFin) granted a guarantee of EUR15 billion for liquidity loans to BayernLB on the basis of the German banking emergency rescue scheme, approved by the Commission in December 2008. HGAA The Austrian financial group HGAA is a subsidiary of BayernLB. It is active in banking and leasing with a balance sheet of EUR43 billion. In banking, HGAA serves both corporate and retail customers and offers services ranging from traditional lending through savings and deposits to complex investment products and asset management services. After large write-downs and losses, the bank received a capital injection of EUR0.7 billion from Bayern LB in 2008 in December 2008 which, in the view of the Commission, would not have been granted without the aid measure from the Free State of Bavaria to BayernLB. In addition, also in December 2008, HGAA received State aid in form of a recapitalization of EUR0.9 billion from Austria on the basis the Austrian banking rescue scheme. On April 29, 2009 Austria submitted informally a viability plan for HGAA. The investigation The Commission will evaluate in detail whether the planned measures are capable of restoring the long-term viability of BayernLB and HGAA, whether the state support is limited to the minimum necessary, and whether measures should be put in place to minimise potential distortions of competition created by the aid. The opening of a formal investigation procedure does not prejudge whether the measures concerned are in line with the EU State aid rules. It is a necessary step to ensure legal certainty for the aid beneficiaries and their business partners and provides an opportunity to take account of comments from interested parties to improve the measures. KORNMUELLER GMBH: Claims Registration Period Ends May 19 -------------------------------------------------------- Creditors owed money by Kornmueller GmbH & Co KG have until May 19, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Franz Hofbauer Hauptplatz 6 3370 Ybbs/Donau Austria Tel: 07412/52731 Fax: 07412/52731-22 E-mail: kanzlei@hofbauer-nokaj.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on June 9, 2009, for the examination of claims at: Land Court of St. Poelten Room 216 Second Floor St. Poelten Austria MASSMOEBEL GMBH: Claims Registration Period Ends June 10 -------------------------------------------------------- Creditors owed money by Massmoebel GmbH have until June 10, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Peter Freiberger Wienerstrasse 50-54 8680 Muerzzuschlag Austria Tel: 03852-30080 Fax: 03852-30080-80 E-mail: office@rpf.at Creditors and other interested parties are encouraged to attend the creditors' meeting at noon on June 24, 2009, for the examination of claims at: Land Court of Leoben Hall IV First Floor Leoben Austria PATRICK SCHWARZ : Claims Registration Period Ends May 25 -------------------------------------------------------- Creditors owed money by Patrick Schwarz S.P.A. KEG have until May 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Robert Igali-Igalffy Stojanstr. 43 2344 Maria Enzersdorf Austria Tel: 02236/25138-20 Fax: 02236/25138-15 E-mail: office@igali-igalffy.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on June 4, 2009, for the examination of claims. RAMADANI KG: Claims Registration Period Ends May 20 --------------------------------------------------- Creditors owed money by Ramadani Kg have until May 20, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Herbert Nigl Hauptplatz 15 2100 Korneuburg Austria Tel: 02262/724 35 Fax: 02262/724 35 50 E-mail: rae@kniwi.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 3, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria ============= B E L G I U M ============= FORTIS BANK: Commission Approves Additional Aid Measures -------------------------------------------------------- The European Commission on Tuesday, May 12, 2009, approved, under EC Treaty state aid rules, additional aid measures from the Belgian and Luxembourg States stemming from amendments of the agreement between Fortis Holding, BNP Paribas, Fortis Bank and the Belgian and Luxemburg authorities. The Commission found that the measures in favor of Fortis Bank and Fortis Holding were limited to the minimum necessary to reach their goal and were, as such, compatible with Article 87.3.b of the EC Treaty, that allows aid to remedy a serious disturbance in the economy of a Member State. Competition Commissioner Neelie Kroes stated: "The reasonably calibrated additional aid for Fortis was necessary to allow the sale of the bank to BNP Paribas to proceed. I am confident that Fortis bank will be made viable when combined with BNP Paribas. On December 3, 2008, the Commission approved the aid granted by Belgium, Luxembourg and the Netherlands to save Fortis Bank and Fortis Bank Luxembourg (now Banque Generale du Luxembourg), finding that the sale of Fortis Bank to BNP Paribas, in parallel with other measures, would allow the long term viability of the bank to be restored. On December 12, 2008, the Court of Appeal of Brussels suspended the sale to BNP Paribas and requested a consultation of the shareholders. This resulted in changes to the terms of the transaction in favor of Fortis Holding. Despite these improvements, Fortis shareholders rejected the transaction on February 11, 2009, triggering a renegotiation of the deal between the Belgian and Luxemburg States, Fortis Holding and BNP Paribas. In the new agreement, dated March 12, 2009, Belgium accepted to assume a larger part of the risk of the investment vehicle which will purchase impaired assets from Fortis Bank, Fortis Holding's exposure being reduced accordingly. Belgium also offered to provide guarantees on a new EUR1 billion loan from Fortis Bank to Fortis Holding and on financial liabilities of Fortis Holding towards Fortis Bank. Lastly, Belgium gave Fortis Holding a call option on the BNP Paribas shares it would acquire. Belgium also accepted to provide Fortis Bank with a mezzanine guarantee, also called second loss guarantee, on the structured credit portfolio retained by Fortis Bank. Furthermore, Belgium accepted that the investment vehicle, in which it assumes the largest part of the risk, purchases additional impaired assets from Fortis Bank. Finally, Banque Generale du Luxembourg will be recapitalised by Luxembourg. Taking account of the very specific and uncommon circumstances of the case, the Commission concluded that the described measures were the minimum necessary to obtain Fortis holding's shareholders' approval on the transactions of early October 2008 and to allow the sale of Fortis Bank to BNP Paribas to proceed. The Commission found that Fortis Bank would be made viable through its combination with BNP Paribas. The Commission also found that the measures relieving Fortis Bank of certain impaired assets were in line with its communication on the treatment of impaired assets. In particular, the Belgian State will purchase or guarantee the structured credits at a price which is well below their real economic value. In other words, a significant part of the losses will be supported by Fortis Bank. Finally distortions of competition resulting from the new aid will be kept to the minimum. In particular, the new entity committed not to expand through acquisitions in the Belgian and Luxembourg banking market. About Fortis Bank Headquartered in Brussels, Belgium, Fortis Banque SA/NV (also known as Fortis Bank) � http://www.fortis.com/-- provides retail services as well as merchant banking, private banking, and asset management services. It operates more than 1,400 branches in Belgium, Luxembourg, Germany, Poland, and Turkey. =========== F R A N C E =========== BANQUE POPULAIRE: Commission Okays EUR2.45 Bln Capital Injection ---------------------------------------------------------------- The European Commission on Friday, May 8, 2009, authorized, under the EC Treaty rules on state aid, a further EUR2.45 billion capital injection into the institution to be created by the merger between the Caisse d'Epargne and Banque Populaire groups. This French Government aid comes on top of that already granted to the Caisse d'Epargne and Banque Populaire groups under the French scheme to inject capital into credit institutions which the Commission approved on December 8, 2008, January 28, 2009 and March 24, 2009. The aid is in line with the Commission�s guidance on support measures for banks during the crisis. Competition Commissioner Neelie Kroes commented: "The merger of the Caisse d'Epargne and Banque Populaire groups has technical implications for their level of capitalization. A further capital injection will help offset potentially adverse effects on the financing of the economy and can be authorised." The boards of the Caisse d'Epargne and Banque Populaire groups have approved a merger which will see them transfer most of the technical and human resources of their respective central bodies to a common central body. In order to put the new central body, which will be responsible for guaranteeing the liquidity and solvency of the entire group, on a sound financial footing, the French Government wants to increase the amount of capital it allocates to the Banque Populaire and Caisse d'Epargne groups. On April 22 the French Government formally notified the Commission of its plan to increase the amount of EUR2.55 billion already approved by the Commission on January 28 by EUR2.45 billion, to be paid to the Caisse d'Epargne and Banque Populaire groups under the second instalment of the recapitalization scheme. The two groups had already received EUR2.05 billion under the first instalment of the scheme. Once the plan has been implemented, they will therefore have received a capital injection of EUR7.05 billion in total. CAISSE D'EPARGNE: Commission Authorizes Further Capital Injection ----------------------------------------------------------------- The European Commission on Friday, May 8, 2009, authorized, under the EC Treaty rules on state aid, a further EUR2.45 billion capital injection into the institution to be created by the merger between the Caisse d'Epargne and Banque Populaire groups. This French Government aid comes on top of that already granted to the Caisse d'Epargne and Banque Populaire groups under the French scheme to inject capital into credit institutions which the Commission approved on December 8, 2008, January 28, 2009 and March 24, 2009. The aid is in line with the Commission�s guidance on support measures for banks during the crisis. Competition Commissioner Neelie Kroes commented: "The merger of the Caisse d'�pargne and Banque Populaire groups has technical implications for their level of capitalization. A further capital injection will help offset potentially adverse effects on the financing of the economy and can be authorised." The boards of the Caisse d'Epargne and Banque Populaire groups have approved a merger which will see them transfer most of the technical and human resources of their respective central bodies to a common central body. In order to put the new central body, which will be responsible for guaranteeing the liquidity and solvency of the entire group, on a sound financial footing, the French Government wants to increase the amount of capital it allocates to the Banque Populaire and Caisse d'Epargne groups. On April 22 the French Government formally notified the Commission of its plan to increase the amount of EUR2.55 billion already approved by the Commission on January 28 by EUR2.45 billion, to be paid to the Caisse d'Epargne and Banque Populaire groups under the second instalment of the recapitalization scheme. The two groups had already received EUR2.05 billion under the first instalment of the scheme. Once the plan has been implemented, they will therefore have received a capital injection of EUR7.05 billion in total. MATERIS: Extends Loan Waiver; Wants to Avoid Debt Restructuring ---------------------------------------------------------------- Tessa Walsh at Reuters reports that banking sources said on Tuesday France-based private owned specialty chemicals company Materis has extended the waiver deadline on its EUR2 billion leveraged loan to Friday, May 15, as it seeks to avert a debt restructuring. Reuters, citing two bankers, discloses Materis asked lenders to reset its loan covenants and ease its repayment schedule in return for fees and a small EUR45 million equity injection from Wendel to allow the parent to keep control of the company and lenders to avoid writedowns. According to Reuters, a banker close to the deal said Materis will run out of money and default on its amortizing payment if the lenders turn down the proposals. Reuters relates a second banker said investors are reluctant to ease Materis' repayment schedule as the company is unlikely to be able to meet even deferred payments after a slump in the chemicals sector. Reuters recalls the bankers said the waiver, which was arranged by BNP Paribas and financed Wendel's purchase in 2006, failed to gain the necessary consensus from lenders last week. The waiver was approved by lenders to the company's term loan B and C but were rejected by lenders to a term loan A and acquisition loan, the report recounts citing the bankers. Headquartered in Cedex France, Materis -- http://www.materis- paints.com �- manufactures speciality building materials including paints and sealants. * FRANCE: Refinancing Scheme for Credit Institutions Extended ------------------------------------------------------------- In accordance with the state aid rules of the EC Treaty, the European Commission on Tuesday, May 12, 2009, authorized the extension of the refinancing scheme for credit institutions in France. The Commission found the extension of the measures, initially approved on October 31, 2008, to be in line with its Communication on state aid to overcome the financial crisis. In particular, the extended measures are limited in time and scope. The Commission has therefore concluded that they represent an appropriate means of remedying a serious disturbance in the French economy and as such are compatible with Article 87(3)(b) of the EC Treaty. Competition Commissioner Neelie Kroes said: "The extension of the refinancing scheme for financial institutions provides France with effective means of restoring confidence in its financial system and refinancing the economy, while at the same time establishing safeguards to limit distortions of competition". The application to extend the scheme -- which aims to further stabilise the financial markets by ensuring access to credit -- was notified to the Commission on April 22, 2009. Apart from the period of application, all other conditions (such as eligible institutions, remuneration and safeguards against possible abuse) remain as laid down in the original decision. The Commission found that the measures were well targeted, proportionate, and limited in time and scope. It therefore concluded that the scheme was an appropriate means of restoring confidence in France's financial market and stimulating interbank lending. ============= G E R M A N Y ============= ADVENIDAS GMBH: Claims Registration Period Ends June 5 ------------------------------------------------------ Creditors of Advenidas 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 9:20 a.m. on July 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heiko Fialski Johannes-Brahms-Platz 1 20355 Hamburg Germany The court opened bankruptcy proceedings against the company on April 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Advenidas GmbH Attn: Bjorn von Meyenn, Manager Brauhausstrasse 17-19 22041 Hamburg Germany ALGEPA PALETTEN: Claims Registration Period Ends June 9 ------------------------------------------------------- Creditors of Algepa Paletten Recycling & Handelsgesellschaft mbH have until June 9, 2009, to register their claims with court- appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg 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: Hendrik Rogge Haferweg 22 22769 Hamburg Germany Tel: 040/89 71 86-0 Fax: 040/89 71 86 11 The court opened bankruptcy proceedings against the company on April 29, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Algepa Paletten Recycling & Handelsgesellschaft mbH Auf dem Salzstock 9 21217 Seevetal Germany Attn: Wolfgang Klitsch, Manager Sch�ferkampsallee 44 20357 Hamburg Germany ALPIN BAU: Claims Registration Period Ends June 2 ------------------------------------------------- Creditors of Alpin Bau und Service GmbH have until June 2, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on July 1, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Leipzig Room 030 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Juergen Wallner Karl-Heine-Strasse 25 b 04229 Leipzig Germany The court opened bankruptcy proceedings against the company on May 4, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Alpin Bau und Service GmbH Attn: Ralf Brummer, Manager Plautstr. 80 04179 Leipzig Germany ARCHIMEDES SOLAR: Claims Registration Period Ends June 2 -------------------------------------------------------- Creditors of Archimedes Solar GmbH have until June 2, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.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 Stuttgart Room 178 Hauffstr. 5 70190 Stuttgart 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: Michael Pluta Albstr. 14 70597 Stuttgart Germany Tel: 0711/76 96 880 Fax: 0711/76 96 88 50 The court opened bankruptcy proceedings against the company on May 4, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Archimedes Solar GmbH Attn: Fritz Klotz and Stefan Dameron, Manager Industriestr. 4 70565 Stuttgart Germany BAYERNLB: Commission Opens In-Depth Probe Into Aid Package ---------------------------------------------------------- The European Commission on Tuesday, May 12, 2009, opened under EC Treaty state aid rules an in-depth investigation into state support measures for German Landesbank BayernLB and its Austrian subsidiary Hypo Group Alpe Adria (HGAA). BayernLB obtained rescue aid in the form of a capital injection of EUR10 billion and a risk shield of EUR4.8 billion, endorsed by the Commission on 18 December 2008. Also in December 2008 HGAA received EUR0.7 billion capital injection from BayernLB. In addition, HGAA received a EUR0.9 billion capital injection from Austria on the basis of the Austrian banking emergency rescue scheme, approved by the Commission in December 2008. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure. Competition Commissioner Neelie Kroes said: "The opening of the in-depth investigation will ensure legal certainty and provide third parties with an opportunity to comment on the measures. I am looking forward to continuing our constructive dialogue with the national authorities in order to find a viable and acceptable solution for the two banks." BayernLB BayernLB is Germany's second largest Landesbank and one of the biggest German banks with a balance sheet total of EUR422 billion in 2008. It is owned by the Free State of Bavaria and the Association of the Bavarian Savings Banks. BayernLB is a commercial bank with regional focus on Germany and selected European countries. It provides banking services in the field of retail banking, corporate clients, money markets and securities as well as other financial services such as leasing. Following the deterioration in the financial and economic environment in the aftermath of the insolvency of Lehman Brothers in September 2008, BayernLB's asset portfolio was downgraded significantly, which, combined with large write-downs on its asset-backed securities (ABS) portfolio, resulted in the need for additional regulatory capital in December 2008. In this context the Free State of Bavaria agreed to strengthen the core capital of BayernLB by an amount of EUR10 billion and to provide a risk shied of EUR4.8 on the ABS portfolio of BayernLB, to prevent further write-downs. The Commission approved these measures on December 18, 2008. In line with this decision, Germany notified on April 29, 2009, a viability strategy for BayernLB. This notification temporarily extends the approval of the EUR10 billion recapitalization and the EUR4.8 billion risk shield until the Commission has finalized its assessment. In addition to the measures by the Free State of Bavaria, in December 2008 the German Financial Markets Stabilisation Fund (SoFFin) granted a guarantee of EUR15 billion for liquidity loans to BayernLB on the basis of the German banking emergency rescue scheme, approved by the Commission in December 2008. HGAA The Austrian financial group HGAA is a subsidiary of BayernLB. It is active in banking and leasing with a balance sheet of EUR43 billion. In banking, HGAA serves both corporate and retail customers and offers services ranging from traditional lending through savings and deposits to complex investment products and asset management services. After large write-downs and losses, the bank received a capital injection of EUR0.7 billion from Bayern LB in 2008 in December 2008 which, in the view of the Commission, would not have been granted without the aid measure from the Free State of Bavaria to BayernLB. In addition, also in December 2008, HGAA received State aid in form of a recapitalization of EUR0.9 billion from Austria on the basis the Austrian banking rescue scheme. On April 29, 2009 Austria submitted informally a viability plan for HGAA. The investigation The Commission will evaluate in detail whether the planned measures are capable of restoring the long-term viability of BayernLB and HGAA, whether the state support is limited to the minimum necessary, and whether measures should be put in place to minimise potential distortions of competition created by the aid. The opening of a formal investigation procedure does not prejudge whether the measures concerned are in line with the EU State aid rules. It is a necessary step to ensure legal certainty for the aid beneficiaries and their business partners and provides an opportunity to take account of comments from interested parties to improve the measures. DRESDNER BANK: Moody's Withdraws 'E+' FSR Following Merger ---------------------------------------------------------- Moody's Investors Service has withdrawn the Aa3/Prime-1 long-term and short-term deposit ratings and E+ bank financial strength rating of Dresdner Bank AG. The rating action follows the completion of Dresdner's merger with Commerzbank AG (rated Aa3/P-1/C-), resulting in Dresdner's incorporation into its parent, Commerzbank AG, which became legally effective on May 11, 2009, with financial and tax reporting effects retroactive to January 1, 2009. Dresdner has now ceased to exist and has been replaced by Commerzbank AG in all its legal relationships. Commerzbank AG has also assumed Dresdner's outstanding debts. This rating action does not affect the ratings of Dresdner Bank Luxembourg S.A. (wholly owned by the Commerzbank group), which is rated A1/C/P-1 with a stable outlook. Moody's anticipated the rating impact of the merger by incorporating Dresdner into Commerzbank AG in its press release of September 2, 2008, when it downgraded Dresdner's long-term rating to the level of the future combined entity. These ratings of Dresdner Bank AG were withdrawn: -- Aa3 long-term deposit rating -- Prime-1 short-term deposit ratings -- E+ BFSR Commerzbank AG and Dresdner Bank AG are both domiciled in Frankfurt, Germany. At the end of December 2008, Commerzbank AG had total consolidated assets of EUR625.2 billion and recorded net income of EUR3 million over the full year. Dresdner Bank had total consolidated assets of EUR420.9 billion and recorded a net loss of EUR6.3 billion for the year. GENERAL MOTORS: RHJ Int'l Mulls Bidding for European Units ---------------------------------------------------------- RHJ International, a European buyout firm with holdings in the auto-parts industry, is considering bidding for General Motors' European operations, which include Adam Opel GmbH, Dana Cimilluca at The Wall Street Journal report, citing a person familiar with the matter. WSJ notes that RHJ, which owns stakes in some auto-parts makers around the world, is likely to try integrating those operations with GM's in Europe if it strikes a deal. Other Possible Bidders According to WSJ, Fiat SpA and Magna International Inc. are also eyeing the operations. German politicians, according to Sharon Terlep and Jeff Bennett at Dow Jones Newswires, have said that Fiat's plans are more advanced, but Magna's offer is viewed as a viable option and is receiving serious consideration. Dow Jones notes that Magna's interest could frustrate efforts by Fiat to acquire GM assets in Europe, Latin America, and South Africa. "We are in talks with Opel, GM and German government officials regarding potential alternatives for the future of Opel, which could include Magna taking a minority stake," Dow Jones quoted Magna CEO Donald Waker as saying. Globe & Mail states that Magna has proposed taking a 20% stake in Opel, alongside 35% held by other partners. Dow Jones relates that under the proposal, GM would have a 35% stake, while workers would hold 10%. According to Dow Jones, GM CEO Fritz Henderson said that the Company would consider holding a minority stake in the unit. Globe & Mail reports that Magna's investment would be around US$260 million. Dow Jones says that Russian auto maker OAO GAZ Group confirmed its interest in partnering with Magna on an Opel deal. Dow Jones, citing a person familiar with the matter, reports that talks with Magna are taking place in Europe, while Fiat's talks are centered in Detroit. About General Motors Corp. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. Excluding special items, the company reported an adjusted net loss of US$5.9 billion in the first quarter of 2009 compared to an adjusted net loss of US$381 million in the first quarter of 2008. As of March 31, 2009, GM had US$82.2 billion in total assets and US$US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. On April 27, General Motors Corp. presented the United States Department of Treasury with an updated plan as required by the loan agreement signed by GM and the U.S. Treasury on December 31, 2008. The plan addresses the key restructuring targets required by the loan agreement, including a number of the critical elements of the plan that was submitted to the U.S. government on December 2, 2008. Among these are: U.S. market competitiveness; fuel economy and emissions; competitive labor cost; and restructuring of the company's unsecured debt. It also includes a timeline for repayment of the Federal loans, and an analysis of the company's positive net present value. The plan details the future reduction of GM's vehicle brands and nameplates in the U.S., further consolidation in its workforce and dealer network, accelerated capacity actions and enhanced manufacturing competitiveness, while maintaining GM's strong commitment to high-quality, fuel-efficient vehicles and advanced propulsion technologies. GM also launched a bond exchange offer for roughly US$27 billion of unsecured public debt. If successful, the bond exchange would result in the conversion of a large majority of this debt to equity. GM is also in talks with the UAW to modify the terms of the Voluntary Employee Benefit Association, and with the U.S. Treasury regarding possible conversion of its debt to equity. The current bond exchange offer is conditioned on the converting to equity of at least 50% of GM's outstanding U.S. Treasury debt at June 1, 2009, and at least 50% of GM's future financial obligations to the new VEBA. GM expects a debt reduction of at least US$20 billion between the two actions. In total, the U.S. Treasury debt conversion, VEBA modification and bond exchange could result in at least US$44 billion in debt reduction. GM filed with the Securities and Exchange Commission a registration statement related to its exchange offer. The filing incorporates the revised Viability Plan. A full-text copy of the filing is available at http://ResearchArchives.com/t/s?3c09 A full-text copy of GM's viability plan presented in February 2009 is available at http://researcharchives.com/t/s?39a4 Going Concern Doubt Deloitte & Touche LLP, has said there is substantial doubt about GM's ability to continue as a going concern after reviewing GM's 2008 financial report. Deloitte cited the Company's recurring losses from operations, stockholders' deficit and failure to generate sufficient cash flow to meet the Company's obligations and sustain the its operations. It said GM's future is dependent on the Company's ability to execute the Company's Viability Plan successfully or otherwise address these matters. If the Company fails to do so for any reason, the Company would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code. Standard & Poor's Ratings Services on April 10 lowered its issue- level rating on GM's US$4.5 billion senior secured revolving credit facility to 'CCC-' (one notch above the 'CC' corporate credit rating on the company) from 'CCC'. It revised the recovery rating on this facility to '2' from '1', indicating its view that lenders can expect substantial (70% to 90%) recovery in the event of a payment default. The corporate credit rating remains unchanged, at 'CC', reflecting its view of the likelihood that GM will default -- through either a bankruptcy or a distressed debt exchange. Moody's Investors Service said February 18 that the risk of a bankruptcy filing by GM and Chrysler remains high. The last rating action on GM and Chrysler was a downgrade of their Corporate Family Ratings to Ca on December 3, 2008. HYPO REAL ESTATE HOLDING: Commission Opens In-Depth Probe Into Aid ------------------------------------------------------------------ The European Commission on Thursday, May 7, 2009, opened under EC Treaty State aid rules an in-depth investigation into state support measures for German bank Hypo Real Estate. This is a first step towards finding a viable long-term solution, in close contact with the German authorities. Hypo Real Estate Holding AG (HRE) obtained rescue aid in the form of a state guarantee of �35 billion, endorsed by the Commission on October 2, 2008. Because this measure continues to be necessary for the bank to ensure its financing, Germany has notified a prolongation of the guarantee together with accompanying measures for HRE. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure. Competition Commissioner Neelie Kroes said: "In view of the difficult situation of Hypo Real Estate and the large amount of aid involved, the Commission has decided to carry out an in-depth investigation into the aid package for Hypo Real Estate in order to ensure legal certainty and allow interested third parties to give their views." Hypo Real Estate Group (HRE group) has its headquarters in Munich, Germany. It has a balance sheet total of around EUR400 billion and consists mainly of the following companies: Hypo Real Estate Holding AG, Hypo Real Estate Bank AG, DEPFA Deutsche Pfandbriefbank AG as well the Irish DEPFA Bank plc. The banks of the HRE group belong to one of the largest issuers of covered bonds (Pfandbriefe). Currently HRE group is active in: Commercial Real Estate Finance, Public Sector & Infrastructure Finance and Capital Markets & Asset Management. It has business in Europe, Asia, North America and South America. On October 2, 2008, the Commission approved rescue aid in form of a EUR35 billion state guarantee for two liquidity lines in line with the EU rules on rescue aid. In addition, HRE has received state aid in the form of guarantees amounting to EUR52 billion provided by the Financial Market Stabilization Fund (SoFFin) under a German banking rescue scheme, approved by the Commission on December 12, 2008. In line with the Commission's decision on the rescue aid, Germany notified on April 1, 2009 a restructuring plan for HRE. This notification temporarily extends the legality of the EUr35 billion state guarantee until the Commission has finalised its assessment. The detailed investigation will evaluate whether the planned measures are capable of restoring the long-term viability of the bank, whether state support is limited to the minimum necessary, and whether measures should be put in place to minimise potential distortions of competition created by the aid. The investigation will also cover the acquisition of 20 million newly-issued HRE shares by SoFFin on March 30, 2009 and the prolongation of the EUR52 billion guarantees granted under the German banking rescue scheme. It might possibly include an additional capital injection by SoFFin. The opening of a formal investigation procedure does not prejudge whether the measures concerned are in line with the EU State aid rules. It is a necessary step to ensure legal certainty for the aid beneficiaries and their business partners and provides an opportunity to take account of comments from interested parties to improve the measures. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. * * * As reported in the Troubled Company Reporter-Europe on Dec. 2, 2008, Dominion Bond Rating Service downgraded its long-term ratings for Hypo Real Estate Holding AG (Holding) and related entities (together Hypo Real Estate or the Group), including the Senior Unsecured Long-Term Debt rating for Holding, which was downgraded to A (low) from "A". Concurrently, all ratings have been placed Under Review with Negative Implications. DBRS's rating action followed the announcement of Hypo Real Estate's Q3 2008 results, the announcement of an additional EUR20 billion short-term debt guarantee and of additional information about the Group's liquidity challenges, earnings outlook and pending application for more comprehensive external support. The downgrade and the Under Review Negative status reflect DBRS's concern that Hypo Real Estate's franchise has been weakened by its ongoing liquidity challenges. The Group's lack of access to market funding currently restricts its ability to write new business and requires it to seek more comprehensive support, demonstrating the weakening of its intrinsic fundamentals, the rating agency said. A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group incurred a consolidated pre-tax loss of EUR3.105 billion for the third quarter of 2008 compared with a pre-tax profit of EUR237 million in the corresponding previous year period. The quarterly loss is mainly attributable to the writeoff of goodwill and other intangible assets attributable to the initial consolidation of DEPFA Bank Plc (EUR2.482 billion). On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's Ratings Services lowered its long-term counterparty credit ratings on the seven rated entities of Hypo Real Estate (HRE) group to 'BBB' from 'BBB+', namely, Germany-based commercial real estate lenders Hypo Real Estate Bank International AG and Hypo Real Estate Bank AG, public-finance lenders Depfa Deutsche Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank Bank International S.A. "These rating actions reflect the group's strained financial profile, weak funding position, and concerns about the viability of its business model," said Standard & Poor's credit analyst Volker von Kruechten. "We expect HRE to restructure and downsize, which may cause further pressure on earnings and capital, owing to the difficult market environment and a deteriorating credit cycle." P O P P GMBH: Claims Registration Period Ends May 25 ---------------------------------------------------- Creditors of P o p p GmbH have until May 25, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:50 a.m. on June 15, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bayreuth Meeting Hall 520 EG Friedrichstr. 18 Bayreuth Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Wolfgang Bilgery Humboldtstr. 16 70178 Stuttgart Germany Tel: 0711/966890 Fax: 0711/9668999 The court opened bankruptcy proceedings against the company on April 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: P o p p GmbH Attn: Mirko Gries, Manager Kulmbacher Strasse 27 95460 Bad Berneck Germany PREMA EDV: Claims Registration Period Ends June 2 ------------------------------------------------- Creditors of Prema EDV-Dienstleistungen und Unterhaltungsger�te GmbH have until June 2, 2009, to register their claims with court- appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00a.m. on June 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Stuttgart Room 178 Hauffstr. 5 70190 Stuttgart 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 Viniol Danneckerstr. 52 70182 Stuttgart Germany Tel: 0711/23 88 90 Fax: 0711/23 88 930 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: Prema EDV-Dienstleistungen und Unterhaltungsgerate GmbH Attn: Marcus Maier, Manager Urbanstr. 2 73614 Schorndorf Germany PROMISE-I MOBILITY: Moody's Junks Rating on Class E 2005-2 Notes --------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of several classes of notes issued by Promise-I Mobility. The transactions are synthetic Balance Sheet CDOs referencing pools of EUR- denominated corporate loans to German SME borrowers (including syndicated loans, sub-participations and credit guarantee claims) granted by IKB. The rating actions reflect the deterioration in the credit quality of the transactions' reference portfolios, as indicated by an increase in the portfolio equivalent average rating factor by: -- 67% since closing for Promise-I-Mobility 2005-1 GmbH (from 398 at closing to 663 in April 2009) -- 24% since closing for Promise-I-Mobility 2005-2 GmbH (from 370 at closing to 459 in April 2009) -- 70% since closing for Promise-I-Mobility 2006-1 GmbH (from 327 at closing to 555 in April 2009) -- 56% since closing for Promise-I-Mobility 2008-1 GmbH (from 303 at closing to 474 in April 2009) The rating actions also reflect the revision of certain key assumptions that the agency uses to rate and monitor corporate CDOs. These revised assumptions incorporate Moody's expectation that European and global corporate default rates are likely to greatly exceed their historical long-term averages and reflect the heightened interdependence of credit markets in the current global economic contraction. Specifically, the changes include: (1) a 30% increase in the assumed likelihood of default for corporate credits in CDOs (2) an increase in the degree to which ratings are adjusted according to other credit indicators such as rating Reviews and Outlooks and (3) an increase in the default correlation applied to corporate portfolios as generated through a combination of higher default rates and increased asset correlations. These revised assumptions are described in greater detail in the press release published on January 15, 2009. Moody's notes that the global corporate loan sector currently has a negative outlook and has shown signs of increasing weakness in terms of credit performance. The sector is further stressed by the anticipated limited refinancing opportunities for EMEA corporate issuers over the next six to twelve months. In addition, for the all of the underlying referenced assets, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale. A stress of one notch was applied to assets belonging to sectors which Moody's view as vulnerable such as Automobile, Buildings and Real Estate, Finance, Hotels, Motels, Inns and Gaming etc. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) -- Framework for De-Linking Hedge Counterparty Risks from Global Structured Finance Cashflow Transactions (May 2007) -- Modeling Recovery Rates in European CDOs (August 2002) -- Moody's Approach to Rating CDOs of SMEs in Europe (February 2007) The rating actions are: Promise-I Mobility 2005-1 GmbH -- Class A Floating Rate Credit Linked Notes, Downgraded to A1; previously on March 24, 2005 assigned Aaa; -- Class B Floating Rate Credit Linked Notes, Downgraded to Baa2; previously on March 24, 2005 assigned Aaa; -- Class C Floating Rate Credit Linked Notes, Downgraded to Ba1; previously on March 24, 2005 assigned A1; -- Class D Floating Rate Credit Linked Notes, Downgraded to B1; previously on March 24, 2005 assigned Baa2; -- Class E Floating Rate Credit Linked Notes, Downgraded to Caa1; previously on March 24, 2005 assigned Ba1. Promise-I Mobility 2005-2 PLC -- Class A Floating Rate Credit Linked Notes, Downgraded to A3; previously on December 19, 2005 assigned Aaa; -- Class B Floating Rate Credit Linked Notes, Downgraded to Baa3; previously on December 19, 2005 assigned Aa2; -- Class C Floating Rate Credit Linked Notes, Downgraded to Ba2; previously on December 19, 2005 assigned A2; -- Class D Floating Rate Credit Linked Notes, Downgraded to B2; previously on December 19, 2005 assigned Baa2; -- Class E Floating Rate Credit Linked Notes, Downgraded to Caa2; previously on December 19, 2005 assigned Ba2. Promise-I Mobility 2006-1 GmbH -- Class A Floating Rate Credit Linked Notes, Downgraded to A3; previously on December 18, 2006 assigned Aaa ; -- Class B Floating Rate Credit Linked Notes, Downgraded to Baa3; previously on December 18, 2006 assigned Aa2; -- Class C Floating Rate Credit Linked Notes, Downgraded to Ba2; previously on December 18, 2006 assigned A2; -- Class D Floating Rate Credit Linked Notes, Downgraded to Caa1; previously on December 18, 2006 assigned Baa2; -- Class E Floating Rate Credit Linked Notes, Downgraded to Caa3; previously on December 18, 2006 assigned Ba1. Promise-I Mobility 2008-1 GmbH -- Class A2+ Floating Rate Credit Linked Notes, Downgraded to Aa3; previously on March 26, 2008 assigned Aaa; -- Class B Floating Rate Credit Linked Notes, Downgraded to Baa1; previously on March 26, 2008 assigned Aa1; -- Class C Floating Rate Credit Linked Notes, Downgraded to Baa3; previously on March 26, 2008 assigned Aa3; -- Class D Floating Rate Credit Linked Notes, Downgraded to Ba2; previously on March 26, 2008 assigned A3; -- Class E Floating Rate Credit Linked Notes, Downgraded to B2; previously on March 26, 2008 assigned Ba1. SCANITA GMBH: Claims Registration Period Ends June 22 ---------------------------------------------------- Creditors of Scanita 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 11:05 a.m. on July 1, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Suedergraben 22 Flensburg 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. Sven-Holger Undritz C/o White & Case Insolvenz GbR Rathausstrasse 6 24937 Flensburg Germany The court opened bankruptcy proceedings against the company on April 29, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Scanita GmbH Attn: Kim Filskov, Manager Falkenberg 27 a 24939 Flensburg Germany TALLYGENICOM LP: German Unit, Printronix Agree on Sale ------------------------------------------------------ Printronix Inc. and TallyGenicom AG confirmed that both companies have reached a definitive agreement to sell TallyGenicom-branded printers and components in Europe and worldwide. Under the terms of the agreement, Printronix will acquire intellectual property from TallyGenicom AG as well as worldwide sales distribution rights for all TallyGenicom line matrix and laser technologies, including printers, supplies and consumables. The acquisition is subject to regulatory approval. In addition, TallyGenicom AG retains all intellectual property and worldwide distribution rights for the TallyGenicom serial-matrix, inkjet and thermal technologies, which includes printers and options, supplies and consumables. TallyGenicom AG will continue to resell TallyGenicom-branded line matrix and laser products purchased from Printronix, and Printronix will resell serial matrix products purchased from TallyGenicom AG. The companies entered into this agreement after TallyGenicom lodged objections to Printronix's March 23, 2009 acquisition of certain assets of TallyGenicom LP, as prescribed by the U.S. Bankruptcy Court for the District of Delaware. The settlement resolves all disputes between Printronix and TallyGenicom AG. As reported by the Troubled Company Reporter on April 22, the Delaware Court approved the sale of U.S. based TallyGenicom LP's business to Printronix Inc. for US$36.6 million, including the assumption of US$23 million in secured debt, US$6.75 million in warranty claims and US$4 million in accounts payable. Michale Pluta, the preliminary insolvency administrator of TallyGenicom A.G. sought a stay of the sale pending its appeal, citing that it has rights to some of the property. The Delaware Court, however, refused to issue a stay order. Distributors, resellers and end-user customers of TallyGenicom- branded products can purchase products from their existing TallyGenicom reseller or by contacting Printronix's global sales offices: -- United States: +1 800-665-6210 -- Europe, Middle East, & Africa: +33 (0) 1 46 25 19 00 Customers wishing to contact TallyGenicom AG may call: +49 (0) 731 20 75 0 About Printronix Inc. Since 1974, Printronix Inc. -- http://www.printronix.com/-- has created innovative printing solutions for the industrial marketplace and supply chain. The company is a worldwide leader in enterprise solutions for line-matrix printing and has earned an outstanding reputation for its high-performance thermal bar code and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, Calif. About TallyGenicom L.P. Headquartered in Chantilly, Virginia, TallyGenicom L.P. aka Datacom Manufacturing LP -- http://www.tallygenicom.com-- provide an array of business and industrial imaging devices and printer parts. TallyGenicom L.P. and two of its affiliates filed for Chapter 11 protection on January 27, 2009 (Bankr. D. Del. Lead Case No. 09- 10266). Ann C. Cordo, Esq., and Gregory Thomas Donilon, Esq., at Morris Nichols Arsht & Tunnell LLP, represent the Debtors in their restructuring efforts. The Debtors propose Proskauer Rose LLP as their special corporate counsel; CRG Partners Group LLC as financial advisor; and Donlin Recano & Company Inc. as their claims agent. Suzzanne Uhland, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., represent Printronix Inc., the stalking horse bidder. Randall L. Klein, Esq., at Goldberg Kohn Bell Black Rosenbloom & Moritz, Ltd., and Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, represent Dymas Funding Company LLC, agent to Printronix' lenders. When the Debtors filed for protection from their creditors, they listed assets and debts between US$10 million to US$50 million each. Tallygenicom AG is a Germany based subsidiary of TallyGenicom L.P. Its German liquidator filed a Chapter 15 petition for the comapny on March 19, 2009 (Banrk. D. Mass., Case No. 09-12253). The petitioner, Michale Pluta is the Preliminary Insolvency Administrator and putative foreign representative of TallyGenicom AG under Germany's Insolvenzordnung Insolvency Act pending before the Amtsgericht, the Local Court of Ulm. The petitioner's counsel, is Steven T. Hoort, Esq., at Ropes & Gray, in Boston, Massachusetts. The company estimated assets and debts of US$10 million to US$50 million. TOUCH STONE: Claims Registration Period Ends June 16 ---------------------------------------------------- Creditors of Touch Stone Beteiligungs und Verwaltungs GmbH have until June 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 16, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Klaus Pannen Neuer Wall 25/Schleusenbruecke 1 20354 Hamburg Germany The court opened bankruptcy proceedings against the company on April 29, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Touch Stone Beteiligungs und Verwaltungs GmbH Attn: Ahmet Duman, Manager Brookdeich 60a 21029 Hamburg Germany WESTLB: European Commission Approves EUR5 Billion Risk Shield ------------------------------------------------------------- The European Commission on Tuesday, May 12, 2009, approved, under EC Treaty state aid rules, the EUR5 billion risk shield for German bank WestLB and accompanying measures, following an in-depth investigation opened in October 2008. The risk shield was authorized by the Commission as temporary rescue aid on April 30, 2008. Germany asked for a prolongation of the measure, together with accompanying measures. In light of the far-reaching measures to be implemented to restore WestLB's long-term viability without undue distortions of competition, the Commission concluded that the aid was compatible with the Single Market. In particular, WestLB will refocus on less risky activities and reduce its size by half. Competition Commissioner Neelie Kroes said: "After a constructive dialogue with the German authorities, I am confident that the comprehensive plan they have submitted will ensure that the viable parts of the bank will be preserved in the best interests of West LB's owners, personnel, and ultimately tax payers. This decision opens up possibilities for a wider restructuring of the German Landesbanks. WestLB AG, based in North Rhine-Westphalia (NRW), had total assets of EUR286.6 billion as at December 31, 2007. In its capacity as a German Landesbank, WestLB acts as central bank and link to global financial markets for savings banks in NRW and Brandenburg, as well as being a commercial bank operating on an international scale. On April 30, 2008, the Commission authorized a risk shield by the State of North Rhine-Westphalia to protect the bank against the volatility of its EUR23 billion structured investment portfolio. On August 8, 2008, Germany notified a restructuring plan for WestLB and requested the prolongation of the risk shield. On October 1, 2008, the Commission opened a formal investigation procedure, to analyze whether the measures would enable WestLB to return to long-term viability without undue distortions of competition. The latest amendments to the viability plan submitted by Germany show a considerable reorientation of WestLB's business into less risky activities. Under the plan, WestLB will in particular entirely stop certain risky business activities, e.g. proprietary trading, thereby reducing its assets by 50%. In future, the bank may maintain its activities in three core business areas: 1. so-called 'transaction banking' (i.e. the treatment of payments) 2. loans to medium-sized companies and its savings banks partnership ('Verbund Mittelstand') and 3. corporate banking (e.g. loans to large companies), capital market activities (including financial instruments trading) and structured finance (e.g. financing of large projects). Finally, Germany committed to change the bank's ownership structure through a public tender procedure before the end of 2011. The Commission is also satisfied that the state support is limited to the minimum necessary and that measures such as the substantial reduction of locations at which WestLB will be present and the sale of a majority of its shareholdings will minimise the potential distortions of competition. The Commission's decision is conditional upon the approval of the restructuring plan by the statutory bodies of all of WestLB's owners. WITTE GMBH: Claims Registration Period Ends June 3 -------------------------------------------------- Creditors of Witte GmbH Prazisionsteile aus Metall have until June 3, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 26, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Norbert Wischermann Alter Markt 9-13 42275 Wuppertal Germany Tel: 0202/493 88-0 Fax: 0202/45 19 39 The court opened bankruptcy proceedings against the company on April 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Witte GmbH Pr�zisionsteile aus Metall Christbusch 6-8 42285 Wuppertal Germany Attn: Hans-Martin Schomaker, Manager Auf'm Kampe 40 42279 Wuppertal Germany * GERMANY: Finance Ministry Proposes Toxic Assets-Bonds Swap ------------------------------------------------------------ A Bloomberg News report says Germany's Finance Ministry published a draft law that allows banks to swap toxic assets for guaranteed bonds under a voluntary program. The report says according to the draft, financial institutions would deposit assets in so-called bad banks at 90 percent of their book value and then sell bonds at that value, paying an annual fee for the guarantee. The lenders will pay the government rescue fund the difference each year between the assets' discounted book value and "fundamental" values as determined by auditors, the report notes. Banks participating in the program will be allowed to deposit so- called "structured" debt into a special-purpose vehicle, or SPV, including asset-backed securities and collateralized debt and loan obligations, the draft cited by Bloomberg News said. Eventual losses at the assets' maturity will be paid by the parent bank's shareholders, who will forego dividends, the draft shows. The legislation will permit banks to clean their books in the "short- term" at the same time as "creating the security that banks need when planning the necessary writedowns," the bill states. "The costs associated with the measures will be carried finally by the owners" of the banks. The report relates banking lobbies and business owners have complained that Finance Minister Peer Steinbrueck stalled over the bad bank model, failing to unfreeze credit as he sought ways to limit the burden to taxpayers. "Everything we're proposing aims not to burden the taxpayer," the report quoted Minister Steinbrueck as saying. "Burdens would accrue to shareholders and not to the taxpayer" at the end of maturity. German banks hold some EUR300 billion in distressed debt and have another EUR500 billion in so-called "non- strategic" assets, Bloomberg News relates citing the Finance Ministry. They've written off EUR70.4 billion amid the crisis, led by Deutsche Bank AG's EUR13.6 billion and Munich-based BayernLB's EUR11.9 billion, the report says citing Bloomberg data. ============= I R E L A N D ============= ANGLO IRISH: Increases Bad-Debt Estimate for 2009 to EUR4.3 Bln ---------------------------------------------------------------- Anglo Irish Bank Corporation plc admitted on Monday it is increasing its estimated bad-debt charge for the year from EUR2.9 billion to EUR4.3 billion, sending shares down by 13% in early trading on Tuesday, May 12, Breakingnews.ie reports. According to the report, some experts believe the figure, which is higher than the worst-case scenario set out by the bank two months ago, could rise even further before the end of the year. About Anglo Irish Bank Headquartered in Dublin, Ireland, Anglo Irish Bank Corporation plc -- http://www.angloirishbank.ie/-- is engaged in the provision of banking services. The Bank operates in three core areas: business lending, treasury and private banking. The Bank's non-retail business is made up of over 11,000 commercial depositors spanning commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. The Company's retail deposits comprise demand, notice and fixed term deposit accounts from personal savers with maturities of up to two years. Non-retail deposits are sourced from commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. In addition, at September 30, 2008, its non-retail deposits included deposits from Irish Life Assurance plc. The Private Bank offers tailored products and solutions for high net worth clients and operates the Bank�s lending business in Ireland and the United Kingdom. * * * Anglo Irish Bank Corporation continues to carry an 'E+' bank financial strength rating from Moody's Investors Service, and an 'F' individual rating from Fitch Ratings. ANGLO IRISH: EU Commissions Approves EUR1.5 Bln Recapitalization ---------------------------------------------------------------- The European Commission on Tuesday, May 12, 2009, approved, under EC Treaty state aid rules, an emergency recapitalisation worth EUR3.5 billion that the Irish authorities intend to grant to Allied Irish Bank. The Commission found the measure to be in line with its Guidance Communications on state aid during the current financial crisis. In particular, the measure is limited in scope, requires an adequate remuneration and provides safeguards to minimise distortions of competition. The measure constitutes an adequate means to remedy a serious disturbance in the Irish economy and is therefore compatible with Article 87.3.b. of the EC Treaty. Competition Commissioner Neelie Kroes said: "This capital injection will enable Allied Irish Bank to weather the financial crisis whilst avoid disproportionate distortions of competition. The Commission has once again demonstrated that it can take effective decisions on measures aimed at stabilising the situation of banks affected by the crisis once it is in possession of full information and sufficient commitments." On April 22, 2009 the Irish authorities formally notified the Commission of their intention to recapitalize Allied Irish Bank with EUR3.5 billion. Due to the current financial crisis, even banks that meet the regulatory solvency ratios may experience distress and be required to reinforce their capital. In addition to difficulties caused by the global financial crisis, recent developments with regard to the sharp decrease of Allied Irish Bank's shares' value increased the need to reassure the financial markets of the bank's stability The shares to be issued will qualify as 'core tier 1 capital'. They will produce a dividend of 8% payable annually, at the discretion of the bank and in priority to dividends on ordinary shares, with detachable warrants after five years. Dividends on the shares are payable in cash, or -- if the bank is not able to pay in cash -- in ordinary shares in lieu. The shares will carry 25% of the voting rights in Allied Irish Bank. The bank can repurchase the shares at par during maximum five years. After that period, shares can be repurchased at 125% of par. No dividends on ordinary shares are allowed when no dividend on the shares to be issued is paid to the Irish State. On purchase of the preference shares, the Irish State will also receive an option to purchase 25% of the existing ordinary shares in the bank (the 'warrants'). This option may be exercised from the fifth to the tenth anniversary of the preferred shares' purchase. The Commission concluded that the measure complies with the conditions laid down in its Guidance Communications. In particular, the measure meets the following criteria: * necessity: Allied Irish Bank has an important role within the Irish financial sector and a loss of confidence could have led to a further disturbance of the financial situation and harmful spill-over effects to the economy as a whole * appropriate own contribution: a remuneration of 8% per annum is consistent with the Commission's Recapitalisation Communication. The Commission also took into account that the probability of return for the Irish State is reinforced through the possibility of combining the dividend payment in cash and ordinary shares and the existence of warrants. * Avoidance of undue distortions of competition: the package foresees sufficient behavioural rules to prevent an abuse of the state support, e.g. prohibition of advertising of the aid, restrictions on the payment of dividends, restrictions on executives' remuneration, nomination of public interest representatives to the bank's board and the submissi on of a restructuring plan within six months for the Commission's assessment and approval. About Anglo Irish Bank Headquartered in Dublin, Ireland, Anglo Irish Bank Corporation plc -- http://www.angloirishbank.ie/-- is engaged in the provision of banking services. The Bank operates in three core areas: business lending, treasury and private banking. The Bank's non-retail business is made up of over 11,000 commercial depositors spanning commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. The Company's retail deposits comprise demand, notice and fixed term deposit accounts from personal savers with maturities of up to two years. Non-retail deposits are sourced from commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. In addition, at September 30, 2008, its non-retail deposits included deposits from Irish Life Assurance plc. The Private Bank offers tailored products and solutions for high net worth clients and operates the Bank�s lending business in Ireland and the United Kingdom. * * * Anglo Irish Bank Corporation continues to carry an 'E+' bank financial strength rating from Moody's Investors Service, and an 'F' individual rating from Fitch Ratings. CAIRN EURO: S&P Puts BB- Rating on Class C Notes on Watch Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on 13 tranches issued by four collateralized debt obligation transactions backed by structured finance securities. The ratings on the other classes of notes issued in these CDO transactions are unaffected at this time. The affected transactions are: -- Stanton MBS I PLC; -- FAB CBO 2005-1 B.V.; -- FAB UK 2004-1 Ltd.; and -- CAIRN EURO ABS CDO I PLC. These rating actions are the result of deterioration in the credit quality of the underlying portfolios. This deterioration is shown in the fall of overcollateralization test ratios, which in most cases now breach their respective trigger levels as set out in the transaction documents. Overcollateralization test ratios have fallen mainly as a consequence of various penalties, or "haircuts", applied to low rated assets. According to S&P's analysis, all the transactions are exposed predominantly to European structured finance securities with the largest country exposure in each case being to the U.K. With respect to Stanton MBS I, FAB UK 2004-1, and Cairn EURO ABS CDO I, the underlying credit risk comprises primarily residential mortgage-backed securities, and to a lesser extent commercial mortgage backed securities and securities issued by CDOs and other structured finance entities. S&P's analysis also shows that FAB CBO 2005-1's portfolio comprises to a large extent securities issued by CDOs, with the second largest assets class being RMBS. The actions primarily follow a preliminary review of how recent deterioration in the credit quality of collateral has affected European CDOs. Ratings List Ratings Placed on Creditwatch Negative Stanton MBS I PLC EUR302.32 Million Secured Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA/Watch Neg AA C A/Watch Neg A D BBB/Watch Neg BBB FAB CBO 2005-1 B.V. EUR305.6 Million Secured Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2 AAA/Watch Neg AAA FAB UK 2004-1 Ltd. GBP198.5 Million Fixed-, Floating-, and Zero-Coupon Notes Rating ------ Class To From ----- -- ---- A-1E AAA/Watch Neg AAA A-1F AAA/Watch Neg AAA A-2E AAA/Watch Neg AAA A-3E AA/Watch Neg AA A-3F AA/Watch Neg AA BE BBB+/Watch Neg BBB+ S1(1) AAA/Watch Neg AAA CAIRN EURO ABS CDO I PLC EUR354.75 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB-/Watch Neg BBB- C BB-/Watch Neg BB- (1) The rating on the class S1 combination notes addresses the payment of a minimum GBP7.5 million of principal. KESTREL FUNDING: S&P Lowers Rating on Income Notes to 'CC' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its issuer credit ratings and its issue credit ratings on medium-term notes issued by two structured investment vehicles. At the same time, S&P lowered its ratings on the income notes issued by four SIVs. The outlook for the SIV sector remains negative. Harrier And Kestrel S&P has lowered the ICR and senior debt ratings on Harrier and Kestrel following the rating actions on WestLB AG. The downgrades reflect WestLB's 100% liquidity support to the SIV and S&P's opinion that the ICR and senior ratings do not merit being higher than those on WestLB AG. Income Notes (Also Known As Capital Notes) S&P has lowered its ratings on the income notes issued by Tango, K2, Nightingale, and Kestrel to 'CC'. This is because, in S&P's opinion, each SIV is less likely to be able to repay these notes. In the case of K2 and Nightingale, it is S&P's view that the market value of the portfolio is not sufficient to repay capital notes in full. In the case of Tango, it is S&P's view that the cash available after repaying senior debt will not be sufficient to repay the capital note investors. ICRs And MTNs Lowered and Removed From CreditWatch Negative; Outlook Negative Harrier Finance Funding Ltd./ Harrier Finance Funding (U.S.) LLC Ratings ------- Class To From ----- -- ---- ICR BBB+/Negative/A-2 A-/Watch Neg/A-2 MTNs BBB+ A-/Watch Neg Kestrel Funding PLC/ Kestrel Funding US LLC Ratings ------- Class To From ----- -- ---- ICR BBB+/Negative/A-2 A-/Watch Neg/A-2 MTNs BBB+ A-/Watch Neg Income Notes Lowered and Removed From CreditWatch Negative Tango Finance Ltd. Ratings ------- Class To From ----- -- ---- Income notes CC CCC-/Watch Neg K2 Corp. Ratings ------- Class To From ----- -- ---- Income notes CC CCC-/Watch Neg Nightingale Finance Ltd. Ratings ------- Class To From ----- -- ---- Income notes CC CCC-/Watch Neg Kestrel Funding PLC Ratings ------- Class To From ----- -- ---- Income notes CC CCC-/Watch Neg ========= I T A L Y ========= CHRYSLER LLC: To Be Headed by Fiat CEO After Bankruptcy ------------------------------------------------------- In light of Chrysler LLC CEO Bob Nardelli's plan to leave Chrysler following the Company's emergence from Chapter 11, Sergio Marchionne, chief executive officer of Fiat Group, will become New Chrysler's chief executive officer, The Associated Press reports, citing a Fiat spokesman, as saying. Mr. Marchionne, the 56-year-old dual Canadian and Italian citizen, has reportedly been eyed for the job since Fiat made a deal with Chrysler, notes AP. Mr. Marchionne, meanwhile, is reportedly in talks to take over General Motor's operations in Europe including Germany's Opel, Britain's Vauxhall and Sweden's Saab. Unlike its deal with Chrysler where it assumed no debt, Fiat said talks in Germany include assuming Opel's debt, AP reports. Fiat confirmed that it is also interested in GM's Latin American operations, the report notes. Fiat to Decide on Dealers' Fate Reports note that while the Non-TARP lenders' withdrawal of their objection to the Fiat Transaction clears a major obstacle to the Chrysler-Fiat Deal, the obstacles are not entirely gone. Chrysler LLC's lenders who are not part of the U.S. Government's Troubled Asset Relief Program, the same group of parties branded by U.S. President Barack Obama as "speculators" for refusing to join Chrysler's banks in the government-brokered deal to wipe out US$6.9 billion debt and move forward with an out-of-court alliance with Fiat, previously objected to the transaction, noting that some unsecured creditors will be paid in full while first lien lenders only 30 cents on the dollar, a violation of bankruptcy law. "Now it's on to dealers and suppliers, and that little issue of product line-up," Jonathon Ramsey of Autoblog points out. With regards the dealers, Chrysler is working on the list of dealerships it plans to eliminate, and the dealers may learn their fate in the next few days, according to Sharon Terlep and Jeff Bennett of The Wall Street Journal. Citing people familiar with the situation, Doron Levin and Mike Ramsey of Bloomberg News, note that Fiat, not Chrysler, will decide which dealers will be brought along to the new company. The report further said an initial list of the retailers to be retained will be filed in Court by May 14, with some dealers to be added after the May 14 filing. "I disagree with terminating dealers, but if that's what's happening, then Fiat should be involved," said Chuck Eddy, an owner of Bob & Chuck Eddy Chrysler-Dodge-Jeep in Youngstown, Ohio, and a member of the U.S. automaker's national council, reports Bloomberg News. Chrysler, says WSJ, hasn't said how many of its 3,188 U.S dealers it wants to close. wftv.com, however, notes that Chrysler may close around 650 to 800 dealerships nationwide. Chrysler wants fewer dealers so those remaining will be more profitable. It had a plan last year to trim the number in major metro areas by as much as 50%, Bloomberg News points out. Kate Linebaugh at WSJ relates that some car dealers see opportunity amid the industry's wreckage, aiming to grab market share and boost profits by buying up struggling competitors. Wes Lutz, owner of a Dodge store, hopes he will make the cut and has been hoarding cash to expand his business if he does, according to WSJ. Mr. Lutz, says the report, wants to buy out the other local Chrysler dealer to grab the two sister brands he doesn't represent -- Jeep and Chrysler. WSJ states that Mr. Eddy also sees opportunity in the industry's decline. Mr. Eddy said that he has been able to produce record sales by increasing his inventory and offering discounted prices, WSJ relates. Competitors have scaled back the number of new cars on their lots, reducing choice for potential clients, WSJ says, citing Mr. Eddy. Chrysler Clarifies Issues on Plant Closings To address confusion regarding Chrysler plant closures, the company disclosed in an official statement the status of certain of its facilities in connection with its restructuring plan, in the context of consummating the Chrysler-Fiat alliance. According to the statement, the plants currently scheduled for closing are: * Sterling Heights Assembly Plant: A severe decline in the market has resulted in reduction of volumes and thus made operation of this plant not possible. The plant is expected to continue operation through December 2010. * Kenosha Engine: Unprecedented reduction in volume and demand for products has resulted in the decision to idle the plant in December 2010. * Detroit Axle: All required work will be moved to a new facility that is being developed in nearby Marysville, Mich. The plant will be idled in December 2010. * Twinsburg Stamping: Due to deteriorating volumes and in order to optimize capacity, existing volume will be transferred to Warren Stamping and Sterling Stamping plants effective March 2010. * Conner Avenue Assembly Plant: The facility and vehicle platform has been for sale since 2008. The site is scheduled to idle December 2009. * St. Louis North Assembly Plant: Due to volume reduction in the truck segment, capacity will be optimized by moving RamBox production to Warren Truck Assembly Plant effective third quarter of 2009. * Newark Assembly Plant (closed December 2008) * St. Louis South Assembly Plant (closed October 2008) Chrysler noted that while most manufacturing operations have been temporarily idled in order to reduce dealer inventory and as part of the restructuring process, the idling was not the result of the bankruptcy filing, and the company expects that most workers will be back on the job following the bankruptcy proceedings and the formation of the new company. "It is expected that virtually all employees associated with these facilities will be offered employment with the new company," the company statement explained. It further noted that the Jefferson North Assembly Plant is scheduled to add a second shift which represents 1,200 jobs coinciding with the introduction of the all-new Jeep Grand Cherokee. While the company continues to address difficult market conditions, the alliance will ultimately provide Chrysler customers and dealers with a broader and more competitive lineup of fuel-efficient vehicles and technology, the statement said. "We are committed to working with every Chrysler community throughout this restructuring process," Chrysler said in the statement. In response, a member of the United Auto Workers' national bargaining committee for Chrysler LLC called the automaker "despicable" for announcing the planned closing of the eight U.S. plants less than 24 hours after UAW-represented Chrysler workers agreed to accept more concessions, reports The Detroit News. "It is despicable that a company can simply abandon its communities, not because the company is ceasing productions, but because they can produce it cheaper elsewhere," Detroit News reports citing Bill Parker, a member of the UAW's bargaining unit and president of Local 1700, which represents workers at the Sterling Heights Assembly Plant, as saying. Mr. Parker said the UAW intends to discuss with Fiat the possibility of keeping the plants open. To recall, Chrysler LLC submitted its Viability Plan to the U.S. Treasury and the President's Auto Task Force on Feb. 17, 2009. As part of this plan, a number of restructuring actions were designed to address significant declines in the Seasonally Adjusted Annual Rate (SAAR) of auto sales -- from 15.6 million in January 2008 to 9.8 million in January 2009 -- and position Chrysler for future success. Chrysler's stand-alone plan contemplated several plant closings based on continued volume deterioration trends as well as a plan that contemplated a global alliance with Fiat that enhanced its stand-alone plan, and included significant concessions from all stakeholders. According to Chrysler, the specific plant actions were not made public because "it would have been presumptuous to assume that the plan was going to be approved, and inappropriate to communicate prior to thorough discussion with the United Auto Workers union." On March 30, 2009, the U.S. Treasury and the President's Auto Task Force rejected Chrysler's stand-alone Viability Plan. However, the Task Force agreed that Chrysler could submit a plan that would be evaluated with a decision made by April 30, provided that it include a global alliance with Fiat and more aggressive sacrifices by all stakeholders. Between March 30 and April 29, 2009, Chrysler diligently pursued this path. Consequently, Chrysler was able to secure an alliance with Fiat. The capacity reductions in the new alliance framework mirrored the Feb. 17 plan, though some of the timing was changed due to continued shift in volume trends and consumer demand. As a result, on April 30, Chrysler announced that it reached a definitive agreement to establish a global strategic alliance with Fiat to form a vibrant new company. "This alliance will save Chrysler, more than 50,000 jobs worldwide, including the preservation of more than 30,000 U.S. and 9,000 Canadian jobs, along with thousands of employees at dealers and suppliers," Chrysler pointed out. "This far outweighs the alternative of liquidation." In order to effectuate this plan, Chrysler filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. Chrysler also filed a motion under Section 363 of the Bankruptcy Code, requesting the swift approval by the court of the agreement with Fiat and the sale of Chrysler's principal assets to the new company. The substantial majority of Chrysler's assets, operations, plants and people will be transferred to the new company, while assets and liabilities that are not consistent with Chrysler's business plan will remain with the old company for disposition. Under the supervision of the court, and with the support of the U.S. Treasury and the President's Auto Task Force, New Chrysler intends to quickly emerge from bankruptcy as a restructured and financially healthy organization. Asia-Pacific Operations Not Affected by Ch. 11 According to The Wall Street Journal, Chrysler said in a statement that its global operations, particularly in China, won't be affected by the company's Chapter 11 cases in the U.S. Chrysler's businesses in the Asia-Pacific region and China are not included in the scope of the bankruptcy protection petition and daily operations won't be impacted, Chrysler explained. Chrysler said it intends to continue paying suppliers and honor service warranties; dealerships will continue to operate as usual, and the quality of Chrysler's vehicles won't be affected. Chrysler, which mainly imports vehicles into the country, sold 8,237 units in China last year, according to market research firm JD Power & Associates, the Journal reports. 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) CHRYSLER LLC: Court Approves Fiat-Led Sale Process for All Assets ----------------------------------------------------------------- Chrysler LLC and its affiliated debtors obtained approval from the U.S. Bankruptcy Code for the Southern District of New York of the bidding procedures for the sale of substantially all of their assets. A full-text copy of the Bidding Procedures is available for free at http://bankrupt.com/misc/ChryslerBiddingProcedures.pdf "The bidding procedures constitute a reasonable, sufficient, adequate and proper means to provide potential competing bidders with an opportunity to submit and pursue higher and better offers for all or substantially all of the assets," Judge Arthur Gonzalez said in his order dated May 7, 2009. The assets to be sold include facilities, executory contracts and leases, intellectual property rights, and those related to the research, production and distribution of vehicles under brand names including Chrysler, Jeep(R) and Dodge. The Debtors offered to sell their assets to New CarCo Acquisition LLC, a Delaware company formed by Fiat S.p.A., subject to higher and better bids, as part of the Master Transaction Agreement that Chrysler signed with Fiat and New CarCo on April 30, 2009. The Fiat group's US$2 billion offer for the assets will be the lead bid in a court-supervised auction to be held on May 27, 2009. Fiat will receive a US$35 million breakup fee in case it is outbid at the auction. Prior to the Court's approval of the bidding procedures, Chrysler argued in Court that it is imperative that the process be completed expeditiously in order to secure the maximum value for the company's stakeholders through the Chapter 11 process. Chrysler said that given the stress on all aspects of the automotive industry and the current idling of its manufacturing facilities, key relationships with suppliers, dealers, and other business partners cannot be preserved if the sale process is not concluded quickly. In addition, Chrysler noted that substantial new financial commitments from the U.S. and Canadian governments require the consummation of a transaction with Fiat within 60 days and make DIP financing available for only that period. The recently announced agreements with the UAW and CAW providing for modifications to the collective bargaining agreement for active employees and for a new schedule of contributions to a VEBA that will provide retiree medical benefits is also conditioned on the expeditious consummation of the Fiat transaction. "While Chrysler has already conducted discussions with Nissan, GM, Volkswagen, Tata motors, Magna, GAZ, Hyundai, Honda and Toyota and others over an extended period of time, these discussions have not produced any viable alternative to the proposed alliance with Fiat," the company disclosed in an official statement. In connection with the proposed sale, the Court approved the procedures governing the assumption and assignment of executory contracts and unexpired leases to New Carco. A full-text copy of the notice containing the procedures is available for free at: http://bankrupt.com/misc/ChryslerAssignmentNotice.pdf The procedures may be modified by further court order if a company other than New CarCo is the winning bidder, or if a transaction other than the proposed sale is consummated for the sale of the Debtors' assets, says Judge Gonzalez. A Sale Notice will also be circulated widely, and notice will also be published in major newspapers to provide opportunity for any interested party to emerge. Full-text copies of the court- approved Sale Notice, Publication Notice and the UAW Retiree Notices, are available for free at: http://bankrupt.com/misc/ChryslerSaleNotice.pdf http://bankrupt.com/misc/ChryslerPublicationNotice.pdf http://bankrupt.com/misc/ChryslerUAWRetireeNotices.pdf The Court will convene a hearing on May 27, 2009, at 10:00 a.m. (Eastern Time), to approve the winning bid. The Court set May 26, 2009, as the deadline for the notice of designation of lead bidder. Companies interested to acquire the assets have until May 20, 2009 to submit competing bids. All parties-in-interest, including the Debtors' prepetition senior secured lenders, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and the Official Committee Of Unsecured Creditors have until May 19, 2009, 4:00 p.m. (Eastern Time), to object to the approval of the Sale Transaction and the UAW Retiree Settlement Agreement. If a determination is made at the Sale Hearing that the Successful Bidder is a bidder other than New CarCo, parties-in- interest may object solely to the determination at the Sale Hearing. The Court will also consider approval of the UAW Retiree Settlement Agreement at the May 27, 2009 Sale Hearing. A full- text copy of the UAW Retiree Settlement Agreement is available for free at: http://bankrupt.com/misc/Chrysler_UAWRetireeSettlementPact.pdf A full-text copy of the Equity Recapture Agreement with the voluntary employees' beneficiary association trust is which is available for free at: http://bankrupt.com/misc/Chrysler_EquityRecapAgreement.PDF The Debtors relate that New Chrysler has agreed to enter into the Non-Pension Retiree Settlement Agreement on terms and conditions that differ from those established by a certain settlement agreement, dated March 30, 2008, in a class action of International Union, UAW, et al. v. Chrysler LLC. The Non-Pension Retiree Settlement Agreement will include, among other things, the funding of benefits with a combination of an equity interest in New Chrysler and a new US$4,587,000,000 note. Under the UAW Settlement Agreement, certain benefit reductions will take effect July 1, 2009, assuming consummation of the Sale Transaction. 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: To Select Chrysler Dealers for New Company ---------------------------------------------------- Fiat SpA, not Chrysler LLC, will decide which dealers will be brought along to the new company to be formed under the U.S. automaker's bankruptcy process, Bloomberg News reports citing people familiar with the situation. The report discloses trimming Chrysler's 3,188 retail outlets would be among the first management actions by Fiat affecting the U.S. automaker. The report says according to documents in those proceedings, an initial list of the retailers to be retained will be filed in U.S. Bankruptcy Court today, May 14. Some dealers may be added after that filing, the report relates citing the people, who didn't want to be identified because the discussions aren't public. 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. Separately, Andreas Cremer at Bloomberg News reports that Volkswagen AG Supervisory Board Chairman Ferdinand Piech said Fiat is planning an unhealthy combination with General Motors Corp.'s European operations and Chrysler will fail to compete globally. The Turin, Italy-based automaker is among investors bidding for GM's European operations, which include Opel and British automaker Vauxhall. "Three sick people in one bed don't make one healthy person," Bloomberg News quoted Mr. Piech as saying at a presentation in Sardinia, Italy, of Volkswagen's fifth-generation Polo subcompact car. 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. SEAT PAGINEGIALLE: S&P Affirms 'BB-' LT Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB-' long-term corporate credit ratings on Italy-based classified directories publisher SEAT PagineGialle SpA. The outlook is negative. S&P also affirmed the 'BB-' rating on the second lien notes issued by SEAT's Luxembourg-based subsidiary Lighthouse International Co. S.A. In addition, S&P removed all of the ratings on SEAT and on the second lien notes from CreditWatch, where they were placed with negative implications on Dec. 4, 2008. At the same time, S&P assigned a 'BB' rating to the first lien debt issued by SEAT for an original amount of EUR2.6 billion, one notch higher than the corporate credit rating. S&P also assigned to this debt a recovery rating of '2', indicating S&P's expectation of substantial (70%-90%) recovery in the event of a payment default. The rating actions followed the group's recent completion of a EUR200 million rights issue, which was announced in December 2008. The rights issue formed part of the group's agreement with its bank lenders to modify some of the terms of its original EUR2.6 billion credit facilities due in 2012 and 2013, most notably maintenance covenant thresholds. On Dec. 31, 2008, SEAT reported gross consolidated debt of GBP3.4 billion, including about GBP76 million of deferred financing fees. "We consider the timely execution and size of the rights issue as a key rating support because it should provide an adequate liquidity cushion for the group in the next few quarters, in the context of the tough operational environment for SEAT's classified directories publishing," said Standard & Poor's credit analyst Manuela Gabetta. In S&P's view, the risks that the steep economic downturn might affect SEAT's 2009 operating performance beyond the group's recent market guidance are substantial. S&P therefore see the need for some additional comfort on liquidity for the next 18 months. SEAT has indicated it has an EBITDA target of EUR560 million for 2009. "The negative outlook reflects the operating risks for SEAT in 2009 and 2010 and the possible implications for leverage and cash flow measures," added Ms. Gabetta. Rating pressures would mount if EBITDA were to turn materially weaker than expected, renewing pressures on covenant headroom. In particular, any indication of covenant headroom dipping to less than 15% or of weaker-than-expected discretionary cash flow generation (which S&P estimate at more than EUR100 million) could lead to a downgrade. In addition, S&P could lower the ratings if the group were unable to reduce gross debt to EBITDA from its peak of about 6.0x at year-end 2008 to about 5.5x by Dec. 31, 2009. Equally, S&P could revise the outlook to stable if the company were to preserve its healthy cash flow generation capacity, despite the cyclical downturn, while continuing to deleverage. * Moody's Cuts Issuer Ratings on Italy's City of L'Aquila to 'Ba1' ------------------------------------------------------------------ Moody's Investors Service downgraded the issuer rating of the City of L'Aquila to Ba1 from A1 and placed the rating on review for possible further downgrade. The rating action reflects the massive impact of the earthquake that hit L'Aquila and its environs on April 6, 2009 and the related legislation enacted by the Italian central government. Moody's views these developments as affecting the city's ability to meet its financial obligations on a timely basis. On April 28, as an emergency measure the central government introduced by Decree a moratorium on individual and corporate tax payments and a suspension of financial obligations of individuals, corporates and local governments in the area. The suspension in particular allows the City of L'Aquila to miss debt service installments due in the course of the year. Although Moody's recognizes that L'Aquila may have the financial capacity to serve its debt, the risk of non-payment has considerably increased given the legal protection offered to the city by the Decree. In addition Moody's notes that in 2009 the municipal budget will suffer a decline in tax revenues and proceeds from public services, which account for around two-thirds of its operating budget, which in normal conditions would total approximately EUR65-70 million. The unprecedented disruption to the city's revenue base combined with expenditure pressure could result in liquidity tensions, in absence of extraordinary subsidies from the central government. Whilst Moody's believes that the central government will provide L'Aquila with additional funds to compensate it for the decline in own-source revenue, the situation is still unclear. As of year-end 2008, the city reported an outstanding debt of EUR49 million, split almost equally between bank loans and domestic bonds. Its next debt service payments (interest and principal) are due by end-June, equating to around EUR3 million. The city's failure to regularly service its financial obligations will trigger a further downgrade of its Ba1 rating. The measure of any downward rating action would reflect the extent of losses incurred by lenders. The last rating action with respect to L'Aquila was taken on Dec. 15, 2006, when its A1 issuer rating was affirmed. =================== K A Z A K H S T A N =================== A & CONSULTING LLP: Creditors Must File Claims by June 12 --------------------------------------------------------- Creditors of LLP A & Consulting have until June 12, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau Satpaev St. 3 Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on April 6, 2009. KARATEK LLP: Creditors Must File Claims by June 12 -------------------------------------------------- Creditors of LLP Karatek have until June 12, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan The Specialized Inter-Regional Economic Court of Karaganda commenced bankruptcy proceedings against the company on March 27, 2009. KAZAKHTELECOM: S&P Changes Outlook to Negative; Holds 'BB' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Kazakhstan's largest telecoms operator Kazakhtelecom to negative from stable. At the same time, the 'BB' long-term corporate credit rating was affirmed. "The outlook revision reflects the deterioration of Kazakhtelecom's stand-alone credit quality, including weaker operating results, increasing financial leverage, and adherence to an aggressive investment policy, which is depressing free cash flow generation," said Standard & Poor's credit analyst Alexander Griaznov. These elements would have led us to downgrade the company, however S&P affirm the rating, reflecting a change in S&P's rating approach on Kazakhtelecom whereby S&P now considers the company a government related entity. S&P believes that Kazakhtelecom's weakening operating results and increase in financial leverage are to a large extent linked to its majority state ownership and control. Kazakhtelecom's increase in leverage has been caused mainly by its aggressive investment policy, to a large extent dictated by the state, which is Kazakhtelecom's majority shareholder. S&P also believes that the company's status as one of the country's major employers does not allow it to manage staff expenses efficiently. This, coupled with Kazakhtelecom's status as an incumbent operator and provider of an essential service in a market with very limited competition, leads us to believe that the state could potentially support the company. Nevertheless, S&P believes that Kazakhtelecom is an autonomously run commercial company. Although core to its region, its systemic importance to the country's economy is considerably lower than that of some other entities. The rating on Kazakhtelecom is therefore based on a "bottom-up" methodology. S&P assesses the company's stand-alone credit quality at 'BB-' and add one notch for potential extraordinary state support. Kazakhtelecom's stand-alone credit quality is constrained by the weakening macroeconomic conditions in Kazakhstan, declining profitability, and increasing leverage. Its EBITDA margin, mainly influenced by rising staff costs, declined to 31.5% for the full year 2008, from 35.5% a year earlier. Kazakhtelecom's adjusted debt leverage increased to 2.2x at the end of 2008 from 1.9x year on year as the company continues to invest heavily in its network. Moreover, the devaluation of the local currency by about 20% so far in 2009 will further contribute to weakening its credit ratios, with adjusted debt to EBITDA increasing up to 2.5x-2.7x during 2009. "We could lower the rating on Kazakhtelecom if the company does not make substantial progress toward refinancing its syndicated facility before year-end 2009 or if its fully adjusted financial leverage increases above 3x," said Mr. Griaznov. "A continuously aggressive investment appetite leading to sustained pressure on free cash flow generation and liquidity, and a further deterioration of profitability would also pressure the rating." KAZMUNAIGAS JSC: S&P Affirms 'BB+' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its outlook on Kazakhstan-based oil company JSC KazMunaiGas Exploration Production, 58% owned by the state-owned holding company JSC NC KazMunayGas (BBB-/Stable/--; Kazakhstan national scale 'kzAA') to stable from negative following a similar action on the parent. The 'BB+' long-term corporate credit rating was affirmed. The rating on KMG EP is based on a top-down approach and is one notch below that on KMG. The rating on KMG, in turn, is pegged to those on the Republic of Kazakhstan (foreign currency BBB-/Stable/ A-3; local currency BBB/Stable/A-3; Kazakhstan national scale 'kzAAA'). "KMG EP's importance for the group is underpinned by its role as the largest majority-owned oil production asset for both KMG and the state, and the largest profit center in the group," said Standard & Poor's credit analyst Andrey Nikolaev. KMG EP's substantial minority shareholding and the absence of parental guarantees on its debt explain the difference between S&P's ratings on KMG and KMG EP. S&P assesses KMG EP's stand-alone credit quality at 'BB'. The rating is constrained by KMG EP's mature, land-locked reserve base; relatively high cost position; and fairly aggressive financial policy, marked by a substantial appetite for acquisitions. After an IPO in 2006 and a period of extraordinary high oil prices, KMG EP benefits from substantial reserves of cash and short-term investments, which by far exceed its modest financial debt. This will largely offset the impact of possible acquisitions on the stand-alone financial profile. KMG EP enjoys adequate profitability and a net cash position. In January-December 2008, high oil prices and the low tax burden in Kazakhstan enabled KMG EP to generate EBITDA of Kazakhstani tenge 345 billion (a strong 57% margin on sales) with free operating cash flow reaching KZT203 billion. Since the substantial decrease in oil prices and after the major tax reform expected to take effect in 2009, KMG EP's free cash flow will substantially reduce, but S&P expects it to remain positive. On March 31, 2009, KMG EP had about US$4.2 billion of cash, versus short-term debt of only about US$80 million. The stable outlook reflects S&P's opinion that KMG EP's rating will move in line with that on the parent. "The evolution of the rating will depend largely on KMG's credit quality, and, ultimately, on the rating on Kazakhstan," said Mr. Nikolaev. However, ratings downside is limited by KMG EP's stand-alone credit quality, which S&P assesses at 'BB'. The stand-alone credit quality factors in the future increase in the tax burden and some flexibility for future investments. Still, major debt-financed acquisitions, if they are not offset by parental or state support, could put pressure on the stand-alone credit quality. S&P will also closely monitor the ability of the company to use the cash deposited with local financial institutions for investments. KEU RUDNENSKY: Creditors Must File Claims by June 12 ---------------------------------------------------- Creditors of LLP Keu Rudnensky GMZ have until June 12, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan The Specialized Inter-Regional Economic Court of Kostanai commenced bankruptcy proceedings against the company on March 27, 2009. NC JSC: S&P Changes Outlook to Stable; Affirms Corporate Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its outlook on 100% government-owned Kazakh oil and gas holding company JSC NC KazMunayGas to stable from negative, following a similar action on the sovereign. The 'BBB-' long-term corporate credit and 'kzAA' Kazakhstan national scale ratings were affirmed. The long-term corporate credit rating on KMG is based on a top- down approach. It mirrors the foreign currency rating and is one notch below the local currency rating on the Republic of Kazakhstan (foreign currency BBB-/Stable/A-3; local currency BBB/Stable/A-3; Kazakhstan national scale 'kzAAA'). KMG is the government's exclusive agent in the strategically vital hydrocarbon sector, with stakes in nearly all significant oil operations in Kazakhstan. The government's policy is to strengthen the state's role in that sector, highlighting the likelihood of state support to KMG. "That is why S&P still assess as high the probability of extraordinary support to KMG in the event of difficulties," said Standard & Poor's credit analyst Andrey Nikolaev. The differential with the sovereign local currency rating reflects the absence of state guarantees on most of KMG's debt and its relatively weaker stand-alone credit quality, which S&P assesses at 'BB'. KMG benefits from its vertically integrated structure and legally privileged access to new oil and gas assets in Kazakhstan. The key rating constraints are KMG's large investment appetite, rising debt, only indirect access to cash flows from joint ventures, and the below-average quality of its majority-owned operations. Debt is set to increase, to be partly offset by the medium- to long-term maturity schedule of its debt and favorable debt structures, with limited or no recourse to KMG and its subsidiaries. The company should also benefit from an expected US$5 billion long-term loan from Chinese banks. An important risk for KMG's stand-alone credit profile stems from a significant part of its large cash reserves being deposited with local banks. S&P believes that these funds may not be fully accessible for further investments or debt reduction. On March 31, 2009, KMG's short-term debt was US$1.4 billion, compared with US$2.6 billion of cash at the level of the parent group and US$4.4 billion at the level of the subsidiaries. The stable outlook mirrors that on the sovereign and reflects S&P's expectation that the ratings on KMG will move in line with the ratings on the sovereign. The local currency rating on KMG will be one notch below the local currency rating on the sovereign, whereas the foreign currency rating on KMG cannot exceed the foreign currency rating on Kazakhstan. S&P's stand-alone credit assessment factors in KMG's investment- acquisitive nature. "The evolution of KMG's stand-alone credit quality will be largely driven by leverage and liquidity," said Mr. Nikolaev. S&P will closely monitor the company's ability to use the cash deposited with local financial institutions for debt reduction and investments, as well as the levels of secured debt on its balance sheet. Because KMG is the largest government-related entity in Kazakhstan, S&P does not expect the company to be exposed to institutional risks in Kazakhstan's highly centralized regime (where succession is untested) beyond the level already factored into the sovereign rating. NUR AMI: Creditors Must File Claims by June 12 ---------------------------------------------- Creditors of LLP Nur Ami have until June 12, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on March 20, 2009. SCAN LLP: Creditors Must File Claims by June 12 ----------------------------------------------- Creditors of LLP Firm Scan have until June 12, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on March 20, 2009. * Moody's Changes Outlook on Kazakhstan's 'Ba1' Rating to Negative ------------------------------------------------------------------ Moody's Investors Service has downgraded Kazakhstan's local currency government rating to Baa2 from Baa1, the same as its foreign currency rating, and changed the outlook to negative. The rating action reflects continuing fragility in the Kazakh banking system because of its large short-term foreign currency debt obligations. "The rating changes also take into account the weaknesses inherent in a macroeconomy that depends heavily on the export of commodities whose prices have collapsed sharply," said Moody's Vice President Jonathan Schiffer. "Moreover, the government's financing gap may widen considerably because of overly optimistic forecasts for the budget outcome." He said shortfalls in government revenues connected with worsening growth prospects may come at a time of increasing stresses in the banking system, as non-performing loans grow rapidly. "With two of the top four banks in default on their foreign currency obligations and in government administration and with resolution of each bank's problems and status far from certain, the health of the banking system may worsen," said Schiffer. "If this combines with a worse-than-expected current account deficit, speculation against the currency may build alongside pressure for greater government financial intervention into both the financial system and real economy." All this, he cautioned, could lead to a substantial drawdown in Kazakhstan's foreign exchange reserves. In related rating actions, the foreign currency country ceiling for bonds was downgraded to Baa1 with a negative outlook from A2 and the local currency country ceilings for bonds and bank deposits both were also downgraded by one notch to A2 and A3, respectively. Also, the outlook on the Ba1 foreign currency country ceiling for bank deposits was changed to negative from stable. The last rating action taken with respect to the Government of Kazakhstan was implemented on June 9, 2006, when Moody's upgraded the foreign currency government bond rating to Baa2 from Baa3 and the foreign currency country ceiling for bonds and notes to A2 from Baa1. Rating actions on related issuers will follow this announcement in due course. =================== K Y R G Y Z S T A N =================== REM NUR: Creditors Must File Claims by June 5 --------------------------------------------- LLC Rem Nur Stroy Service has shut down. Creditors have until June 5, 2009, to submit proofs of claim to: Tolstoi Str. 17A Room 12 Bishkek Kyrgyzstan =========== L A T V I A =========== PAREX BANKA: Commission Approves Amendments to Latvian Support -------------------------------------------------------------- The European Commission on Monday, May 11, 2009, approved, under EC Treaty state aid rules, amendments to the original recapitalization measure (Tier 2 capital) of the Latvian JSC Parex Banka, initially approved on November 24, 2008. Under the proposed changes, Latvia would acquire newly issued ordinary shares and subordinated term debt. The Commission found that the amendments were in line with its Communication on the recapitalization of banks during the crisis. In particular, the measure is subject to an adequate remuneration, does not exceed the minimum necessary and is limited in time. The amended support package for JSC Parex Banka is therefore compatible with Article 87.3.b of the EC Treaty, which allows aid to remedy a serious disturbance in the economy of a Member State. Competition Commissioner Neelie Kroes said: "The changes to Parex Banka's recapitalization were necessary to adapt to a modified financial and regulatory environment in Latvia. This decision demonstrates again that the state aid rules are sufficiently flexible, even for rapidly evolving markets." Due to the continued effects of the financial crisis and to recently implemented regulatory requirements in Latvia, JSC Parex Banka's capital and liquidity ratios deteriorated. Therefore, it became necessary to review the bank's recapitalization, envisaged in November 2008, and on March 29, 2009, Latvia notified a series of amendments to the Commission. In particular, Latvia proposes to strengthen the bank's capital basis with the aim to achieve a capital adequacy ratio of 11% by issuing ordinary shares, qualifying as Tier 1 capital and subordinated term debt qualifying as Tier 2 capital. The state would purchase these against adequate remuneration. The Commission's investigation found that the changes are in line with the conditions set out in its Guidance Communication on the recapitalization of banks during the crisis. In particular, the remuneration of the Latvian state for the bank's recapitalization would be based on the European Central Bank recommendations, taking into account the real costs of state treasury loan funds, an adequate risk premium and a fee. Moreover, the Latvian supervisory authority confirmed that the value of the capital injection corresponds to the minimum necessary to keep JSC Parex Banka in business until it can restructure. Furthermore, the state committed to exit JSC Parex Banka's Capital in the medium term. Finally, Latvia remains committed to submitting a restructuring plan for the bank shortly. The Commission therefore concluded that the amendments were necessary and adequate to restore market confidence in JSC Parex Banka. About Parex Banka Founded in May 1992, JSC Parex Banka a.k.a Parex Banka AS -- http://www.parexgroup.com/-- is a commercial bank with assets exceeding 4.46 billion. It offers its clients integrated services in areas such as lending, payment cards, leasing, asset management and securities trading. It has more than 70 branches, customer service centers and settlement group, or nearly all regions of Latvia and the major cities. Currently, bank branches and customer service centers in Latvia employs more than 2,600 people. * * * As reported in the Troubled Company Reporter-Europe on May 13, 2009, Moody's Investors Service maintained Parex Bank's B2 long- term local and foreign currency deposit and debt ratings on review for possible downgrade. The outlook on the E bank financial strength rating remains stable. The bank's Not Prime short-term rating was affirmed. ===================== N E T H E R L A N D S ===================== CARLSON WAGONLIT: S&P Cuts LT Corporate Credit Rating to 'B-' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its long- term corporate credit rating on Netherlands-incorporated business travel operator Carlson Wagonlit B.V. to 'B-' from 'B'. Following the lowering of the CCR on CWT, S&P lowered the issue rating on CWT's EUR285 million floating rate notes maturing 2015 to 'CCC' from 'CCC+'. The recovery rating on the notes remains unchanged at '6', indicating that S&P expects negligible (0%-10%) recovery in the event of a payment default. At the same time, S&P revised the recovery rating on CWT's $850 million senior secured facilities to '3' from '2', indicating that S&P expects meaningful (50%-70%) recovery in the event of a payment default. Consequently, S&P has lowered the issue rating on this debt by two notches to 'B-' from 'B+'. The issue rating is now in line with the CCR on CWT. The CCR and the debt ratings remain on CreditWatch with negative implications, where they were placed on March 2, 2009. "The rating actions reflect Standard & Poor's view that the economic downturn is likely to lead to a severe decline in CWT's free cash flow generation in 2009 and 2010. In particular, the CreditWatch placement relays S&P's view of a potentially ongoing decline in revenues and earnings, which could narrow the covenant headroom under CWT's existing facilities," said Standard & Poor's credit analyst Silvia Ortolan. Given that lower business confidence has continued to result in reductions in business travel, CWT is, in S&P's view, likely find it difficult to cushion the negative impact of declining business volumes and margins through its flexible cost structure. Additionally, CWT would have to incur upfront costs of any business reorganization measures in 2009, affecting near-term operating cash flows. Because of the debt-financed buyout and 2006 acquisition, CWT's credit protection measures are weak. CWT's ratio of total adjusted debt to EBITDA, which excludes its cash position of about $188 million (net of overdrafts), was still 6.0x for the full year to Dec. 31, 2008, the same level as the previous year. At Dec. 31, 2008, CWT had total reported financial debt of $1.1 billion. Furthermore, given the deteriorating conditions in CWT's key markets, deleveraging through EBITDA growth would, in S&P's view, be difficult to achieve for the time being. According to CWT's annual report, net sales in financial 2008 were EUR1.92 billion, up 4.6% year on year. CWT's reported EBITDA margin -- before integration, transaction, and exceptional restructuring costs -- decreased to 11.9% in fiscal 2008 from 13.2% in the same period in the previous year. S&P anticipates that S&P will review the CreditWatch placement within the next three months, once there is clarity on potential amendments to CWT's credit facilities. The outcome of the CreditWatch status will also depend on S&P's view of the effectiveness of the measures CWT adopts to adjust to the current difficult trading conditions. METINVEST BV: Moody's Reviews 'B1' Corporate Rating for Downgrade ----------------------------------------------------------------- Moody's Investors Service has placed Metinvest's B1 corporate family rating, Aa3.ua national scale rating and Azovstal Capital's B2 rating for loan participation notes on review for possible downgrade. The rating action was prompted by (i) Moody's concerns that the business outlook on the steel industry and the Ukraine may lead to a substantial deterioration of the company's leverage and profitability ratios, (ii) the company's acquisition of US coal mining company United Coal thereby possibly releveraging the companies' balance sheet, (iii) the company's short term liquidity situation, which heavily depends on the company's ability to continue generating sizable free cash flows in challenging markets and to retain the support of its main banks to provide required liquidity. The review will therefore focus on (i) Metinvest's expected profitability and cash flow in the wake of the weak economic environment, (ii)Metinvest's ability in the short to medium term to fund its debt maturities from cash generation, (iii) the strategic rationale and valuation for the acquisition of United Coal, and (iv) the impact on its creditworthiness of the difficult political and economic environment of the Ukrainian state. Moody's understands that, despite the weak demand for steel products in general, the company has been able to generate a positive result in the first couple of months in 2009 and generated free cash flows, which have contributed to the financing of the first installment for the acquisition of United Coal and to other committed cash outflows, such as dividends, capex and debt maturities. Metinvest currently benefits from the substantial depreciation of the Ukrainian local currency and its self-sufficiency in raw materials which gives the company a significant cost advantage against other steel companies with a focus on the semi-finished steel products. Moody's last rating action on Metinvest was to downgrade the corporate family rating to B1 from Ba3 and Azovstal Capital's issuer rating to B2 from B1 on November 5, 2008. Metinvest B.V., a company set up under Dutch law, but with major operations in Donetsk/Ukraine is the largest steel and iron ore producer of the Ukraine. In 2008 the company generated revenues of US$13.3 billion and operating profit of US$4 billion. Metinvest is 75% owned by System Capital Management, an investment holding company in the Ukraine. 25% (blocking stake) of Metinvest's shares are owned by Smart Group based in the Ukraine. On Review for Possible Downgrade: Issuer: Azovstal Capital B.V. -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Issuer: Metinvest B.V. -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently B1 -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently B1 Outlook Actions: Issuer: Azovstal Capital B.V. -- Outlook, Changed To Rating Under Review From Negative Issuer: Metinvest B.V. -- Outlook, Changed To Rating Under Review From Negative TRONOX INC: Sues Anadarko, Kerr-McGee for Fraudulent Conveyance --------------------------------------------------------------- Tronox Incorporated yesterday filed an adversary complaint against Kerr-McGee Corporation and its successor, Anadarko Petroleum Corporation, in its Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York. The complaint asserts that Kerr-McGee defrauded Tronox's creditors through its separation and spin-off of its former chemical subsidiary in 2006. Tronox seeks recovery for fraudulent transfers involving valuable oil and gas assets and massive actual and contingent environmental, tort, retiree and other liabilities. The complaint asserts that Tronox was doomed to fail at the time of the spin off, having been grossly undercapitalized, stripped of its most valuable assets and essential cash, and overburdened with legacy environmental, tort and retiree liabilities. Less than three years after the spin-off, Tronox filed for chapter 11 bankruptcy protection on January 12, 2009. Anadarko acquired New Kerr-McGee less than five months after the Spinoff was completed and the Legacy Liabilities severed. New Kerr-McGee's shareholders approved on August 10, 2006, Anadarko's offer of US$16.4 billion in cash and assumption of US$1.6 billion in debt. New Kerr-McGee became and remains a wholly owned subsidiary of Anadarko. According to TRONOX BANKRUPTCY NEWS, since acquiring New Kerr- McGee, Anadarko has admitted that it could be financially responsible for the Legacy Liabilities should Tronox fail. In both its 2006 and 2007 Annual Reports, Anadarko stated "Kerr-McGee could be subject to joint and several liability for certain costs of cleaning up hazardous substance contamination attributable to the facilities and operations conveyed to Tronox if Tronox becomes insolvent or otherwise unable to pay for certain remediation costs. As a result of the merger, we will be responsible to provide reimbursements to Tronox pursuant to the MSA, and we may be subject to potential joint and several liability, as the successor to Kerr-McGee, if Tronox is unable to perform certain remediation obligations." At the time Tronox filed for bankruptcy, John Christiansen, a spokesman for Anadarko, said in an e-mailed statement to The Houston Chronicle that a reserve of US$100 million, the company's maximum obligation to reimburse Tronox, already has been recorded on its balance sheet. "The filing of a bankruptcy petition by Tronox does not alter our liability," the newspaper said quoting Mr. Christiansen as saying. Legacy Liabilities According to TRONOX BANKRUPTCY NEWS, pursuant to the Spinoff Agreements, New Kerr-McGee forced Tronox to assume the Legacy Liabilities, including unknown, implied and contingent Legacy Liabilities and obligations. The Legacy Liabilities are almost entirely unrelated to the operation of Tronox's core titanium dioxide businesses. The most significant of the Legacy Liabilities relate to: (a) environmental remediation and cleanup at allegedly contaminated sites of the Legacy Businesses; (b) defense of tort suits brought by third parties arising from alleged hazardous releases and contamination related to the Legacy Businesses; and (c) welfare, benefit and pension obligations for former Old Kerr-McGee employees who once worked for the Legacy Businesses. Since the Spinoff, Tronox has spent more than US$118 million to satisfy the residual Legacy Liability obligations. A nominal amount of that figure relates to titanium dioxide operations, Mr. Barton says. As a result of these Legacy Liabilities, Tronox is required to maintain a large environmental remediation group that is responsible for remediation and other activities on approximately 100 sites related to the Legacy Businesses. As of January 12, 2009, Tronox has spent a total of approximately US$148 million on environmental remediation costs. Over time, Tronox has been reimbursed for approximately US$75 million of this amount from various third parties. New Kerr-McGee, however, has only contributed approximately US$4 million through the indemnity provisions of the MSA. On the petition date, Tronox was defending approximately 120 tort suits related to a variety of hazardous materials that were allegedly released by the Legacy Businesses, including but not limited to creosote, benzene, low-level radioactive substances and asbestos. These suits involve thousands of plaintiffs and have cost Tronox at least US$26.9 million (net of reimbursements) to manage since the Spinoff. Significant suits include, among others, claims related to former wood-treatment plants located in Columbus, Mississippi, Avoca, Pennsylvania, and Texarkana, Texas, including a group of 238 federal court suits with more than 2,000 plaintiffs and a group of 35 state court suits with more than 4,000 plaintiffs. In conjunction with the Spinoff, New Kerr-McGee also required Tronox to assume responsibility for retirement and other employee benefit liabilities for current and former employees of the Chemicals Business and the Legacy Businesses pursuant to the terms of an Employee Benefits Agreement. Tronox Inc. was required to sponsor specific employee and retiree benefit plans for the employees and retirees allocated to it during the Spinoff. These programs included defined benefit and retiree medical and life insurance plans. These benefit programs were not competitive but Tronox was required to maintain the programs, and could not modify them, for three years after the completion of the Spinoff. The cost of these benefit programs was more than US$6 million per year. About Tronox Inc. Headquartered in Oklahoma City, Tronox Incorporated (Pink Sheets: TRXAQ, TRXBQ) is the world's fourth-largest producer and marketer of titanium dioxide pigment, with an annual production capacity of 535,000 tonnes. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's four pigment plants, which are located in the United States, Australia and the Netherlands, supply high-performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. Tronox has US$1.6 billion in total assets, including US$646.9 million in current assets, as at September 30, 2008. The company has US$881.6 million in current debts and US$355.9 million in total noncurrent debts. Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates filed for Chapter 11 protection on January 13, 2009 (Bankr. S.D. N.Y. Case No. 09-10156). The case is before Hon. Allan L. Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York, represent the Debtors. The Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel; Rothschild Inc. as investment bankers; Alvarez & Marsal North America LLC, as restructuring consultants; and Kurtzman Carson Consultants serves as notice and claims agent. An official committee of unsecured creditors and an official committee of equity security holders have been appointed in the cases. The Creditors Committee has retained Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel. Until September 30, 2008, Tronox Inc. was publicly traded on the New York Stock Exchange under the symbols TRX and TRX.B. Since then, Tronox Inc. has traded on the Over the Counter Bulletin Board under the symbols TROX.A.PK and TROX.B.PK. As of December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares of class A common stock and 22,889,431 outstanding shares of class B common stock. Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tronox Inc. and its 14 affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) =========== P O L A N D =========== * POLAND: IMF Approves US$20.58 Billion Arrangement Under FCL ------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on Wednesday, May 6, 2009, approved a one-year SDR 13.69 billion (about US$20.58 billion; 1,000 percent of quota) arrangement for Poland under the Flexible Credit Line (FCL) . The Polish authorities intend to treat the arrangement as precautionary, which means that they do not intend to draw from the FCL. The arrangement for Poland is the second commitment, after Mexico, under the IMF's FCL, which was created in the context of a major overhaul of the Fund�s lending framework on March 24, 2009. The FCL is particularly useful for crisis prevention purposes as it provides the flexibility to draw on the credit line at any time. Disbursements are neither phased nor conditioned on compliance with policy targets as in traditional IMF-supported programs. This flexible access is justified by the very strong track records of countries that qualify for the FCL, which gives confidence that their economic policies will remain strong. Following the Executive Board's discussion on Poland, Mr. John Lipsky, First Deputy Managing Director and Acting Chair, made the following statement: "Poland's economic growth has been very strong and well-balanced in recent years. Private consumption growth has been robust, the external position is sustainable, and the banking sector is well- capitalized. The avoidance of acute imbalances during the boom years reflects a very strong and timely policy implementation. A long-standing and effective inflation-targeting regime and a freely-floating exchange rate have helped build confidence in monetary institutions and anchor inflation expectations. The authorities' EU commitments and their euro adoption target have provided a strong fiscal anchor. Banking supervision has been fully compliant with EU laws and directives. Its institutional framework has been buttressed by the unification of financial supervision and the creation of the Financial Stability Committee. "Despite very strong fundamentals, Poland's economy is now facing the risk of spillovers from the global crisis through both the real and financial sector channels. Exports have contracted and economic activity has slowed in early 2009, reflecting a deep recession in its main trading partners. A sharp slowdown in credit growth is underway as banks have begun to tighten credit criteria. Nonetheless, Poland has maintained access to international capital markets. "The authorities have responded in a timely and effective manner to the global downturn. They have embarked on a monetary loosening cycle, and stand ready to cut rates further if downside risks to the economy materialize. Financial sector stability has been safeguarded, through liquidity provision and intensified surveillance. Despite the slowdown in growth, the authorities remain committed to the 2009 state budget, primarily by cutting expenditure at the state level. They reaffirmed their full commitment to strengthen the medium-term fiscal framework to maintain a sustainable path for public debt. "The Executive Board considered that a precautionary arrangement under the Flexible Credit Line (FCL) for Poland would play an important role in supporting the authorities' policy response, boosting market confidence, and placing Poland in a better position to manage adverse developments. The FCL arrangement for Poland will also have a positive regional impact," Mr. Lipsky said. Poland joined the IMF on June 12, 1986; its quota is SDR 1.36 billion (about US$2.06 billion). The country's latest use of Fund resources was under a Stand-By Arrangement that expired on March 4, 1996. =========== R U S S I A =========== ARTSTROY LLC: Creditors Must File Claims by June 24 --------------------------------------------------- The Arbitration Court of Krasnoyarsk commenced bankruptcy proceedings against LLC Artstroy (TIN 2466086430, PSRN 1022402660785) (Construction) after finding the company insolvent. The case is docketed under Case No. ?33�13704/2008. Creditors have until June 24, 2009, to submit proofs of claims to: N. Surtaev Insolvency Manager Diksona St. 1-203 660020 Krasnoyarsk Russia The Debtor can be reached at: LLC Artstroy 78 Dobrovolcheskoy Brigady St. 4 660077 Krasnoyarsk Russia ISKROM LLC: Creditors Must File Claims by May 24 ------------------------------------------------ Creditors of LLC Iskrom (TIN 5903071361, PSRN 1065903036066) (Construction) have until May 24, 2009, to submit proofs of claims to: A. Sergeev Temporary Insolvency Manager Post User Box 1686 Berezniki 618400 Permskiy Russia The Arbitration Court of Permskiy will convene at 10:45 a.m. on June 26, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?50�18551/2008. The Debtor can be reached at: LLC Iskrom Apt. 202 Sukhobrusa St. 27 614068 Perm Russia KANSKIY WOOD-SAWING: Creditors Must File Claims by June 24 ---------------------------------------------------------- The Arbitration Court of Krasnoyarskiy commenced bankruptcy proceedings against LLC Kanskiy Wood-Sawing and Processing Complex (TIN 2450020868, PSRN 1052450032942) after finding the company insolvent. The case is docketed under Case No. ?33- 7923/2007. Creditors have until June 24, 2009, to submit proofs of claims to: S. Grudyakov Insolvency Manager Microregion Sosnovy 70/4 Kansk 663606 Krasnoyarskiy Russia The Debtor can be reached at: LLC Kanskiy Wood-Sawing and Processing Complex Building 1 Kzhivon Kansk 663602 Krasnoyarskiy Russia ===================================== S E R B I A & M O N T E N E G R O ===================================== * SERBIA: EUR250 Million Loan for SMEs Signed --------------------------------------------- The European Investment Bank (EIB) has launched a program for 2009 in Serbia aimed at combating the financial crisis and bringing the country closer to the European Union. On Monday, May 11, 2009, in Belgrade, a first loan of EUR250 million for small and medium- sized enterprises (SMEs) and priority projects in the country, via the National Bank of Serbia, was signed. This is the first in a series of operations that are expected to see the EIB support Serbia's real economy in 2009-2010 with loans worth over EUR1.4 billion aimed to support the recovery of Serbian economy and pave the way towards European integration. At the same time, the EIB and the Republic of Serbia signed a new Framework Agreement aimed at laying down the EIB activity in Serbia. The EIB was represented by Dario Scannapieco, Vice-President with responsibility for financing operations in Italy, Malta and the Western Balkans; Serbia by Deputy Prime Minister and Minister of Economy Mladjan Dinkic, Deputy Prime Minister and Minister of Technological Development Bozidar Djelic, Finance Minister Diana Dragutinovic; and the National Bank of Serbia by its Vice Governor, Ana Gligorijevic. SMEs: EUR250 million via the National Bank of Serbia The EUR250 million loan will be disbursed via the National Bank of Serbia and will be on-lent by Serbian commercial banks. During the current financial downturn, the amounts made available by the EIB will help to fund and support projects by SMEs and local authorities as well investments in the following sectors: industry, infrastructure, energy, environmental protection, knowledge economy, health, education, and services. EIB loans are available to all financial institutions in Serbia. In order to accelerate support to the SME sector, EIB loans may cover up to 100% of the cost of each project. "The EIB has been active in Serbia for many years; however, with the agreements signed [Mon]day, cooperation between the Bank of European integration and the Serbian government has taken a huge step forward", remarked EIB Vice-President Scannapieco. "Our commitment in this country throughout 2009 and in the years to come will fund investments and thus the development of businesses and local authorities as well as the completion of key infrastructure that will connect Serbia with the rest of Europe. EIB's key contribution will therefore help Serbia to combat the recession and make a swifter recovery, thereby adding greater weight each day to that country's plans of nurturing closer ties with the European Union". 2009 potential: EUR1.4 billion to all sectors of Serbia's economy Overall, Serbia's projects currently being appraised by the EIB exceed EUR1.4 billion. Since the EIB finances up to 50% of the total project cost, over the next few years investments totalling at least EUR2.8 billion could be made thanks to EIB support. This corresponds to around 3% of Serbia's entire GDP. This is unparalleled and matches total EIB signatures in Serbia over the past eight years. During the period 2001-2008, total financing was EUR1.38 billion. The projects concern all sectors of the economy from the financial sector, motorways and rails (Corridor X) to education, energy, research and development and local infrastructure. ========= S P A I N ========= NOZAR: In Talks With Creditor Banks, Rules Out Administration ------------------------------------------------------------- Judy MacInnes at Reuters reports that Nozar, owned by the Nozaleda family, said Tuesday that it is in talks with its creditor banks, convincing them to agree on a proposal in the event it fails to refinance its debt. The Spanish privately-held property company said, however, that it is not in a situation where it needs to file for administration, the report states. The report recalls earlier this month, a Madrid court rejected a request by one of Nozar's creditors, Avalatransa, to put the company into administration. According to the report, over the last few months, the company, which holds stakes in other troubled property companies Colonial and Afirma, has cut its debt to about EUR700 million (US$954.2 million). SANTANDER FINANCIACION: S&P Junks Ratings on Class E Notes --------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit rating on the class E notes and placed on CreditWatch negative its ratings on the class C and D notes issued by Fondo de Titulizacion de Activos Santander Financiacion 1. All the other ratings in this deal are unaffected. The rating actions follow an updated risk assessment driven by the significant performance deterioration recorded over the past six months. S&P's analysis shows that the likelihood of negative rating actions has increased for the class C and D notes. Moreover, the likelihood has increased that class E notes will defer interest due to a potential breach of the interest deferral trigger, and this increase in likelihood was reflected in S&P's lowering of the rating on this class. The level of 90+ day delinquencies grew to 6.87% of the current balance in April 2009, from 6.22% in October 2008. However, the most concerning factor is the rise in gross cumulative defaulted loans, which reached 4% of the original balance at the last interest payment date, up from 2% in October 2008. This shows that a significant portion of delinquent loans rolled into default defined as loans in arrears for more than 12 months. The transaction features an early amortization mechanism which pays down senior notes based on the current balance of defaulted loans. This resulted in a draw on the cash reserve on the January payment date and the remaining balance of the reserve was drawn on the April payment date. Finally, during the last payment date the fund accumulated EUR9.11 million of principal deficit, which is the difference between the available funds and the amount of the notes to be amortized. The deferral of interest trigger is based on the amortization deficit. The class E interest will be deferred when this deficit reaches EUR13.3 million, half of the outstanding balance of the class E notes. In S&P's opinion, if defaulted loans continue to rise at their recent pace this deferral trigger may be breached as early as the next payment date. S&P will maintain close contact with the originator to assess the status of delinquent and defaulted loans, and S&P will factor this information into S&P's cash flow analysis. This review and S&P's expectation of future defaults will govern whether S&P will lower the ratings on classes C and D. The notes, issued in 2006, are backed by a portfolio of Spanish consumer loans originated by Banco Santander S.A. (AA/Negative/A- 1+). Ratings List Fondo de Titulizacion de Activos Santander Financiacion 1 EUR1,914.3 Million Asset-Backed Floating-Rate Notes Ratings Lowered Ratings ------- Class To From ----- -- ---- E CCC B- Ratings Placed On Creditwatch Negative Ratings ------- Class To From ----- -- ---- C A/Watch Neg A D BB/Watch Neg BB ===================== S W I T Z E R L A N D ===================== CORNIL JSC: Creditors Must File Proofs of Claim by June 2 --------------------------------------------------------- Creditors of Cornil JSC are requested to file their proofs of claim by June 2, 2009, to: Dr. R. Mosimann Baarerstrasse 78 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting on May 27, 2008. HOLGI LLC: Claims Filing Deadline is May 29 ------------------------------------------- Creditors of Holgi LLC are requested to file their proofs of claim by May 29, 2009, to: Anje Holdorf Plan da Muglin 90a 7556 Ramosch Switzerland The company is currently undergoing liquidation in Scuol. The decision about liquidation was accepted at a shareholders' meeting on January 27, 2009. RUNPACK VERPACKUNGEN: Creditors Have Until June 2 to File Claims ---------------------------------------------------------------- Creditors of Runpack Verpackungen LLC are requested to file their proofs of claim by June 2, 2009, to: Esther Buck-Pauli Liquidator Gartenweg 1 4656 Starrkirch-Wil Switzerland The company is currently undergoing liquidation in Starrkirch-Wil. The decision about liquidation was accepted at an extraordinary shareholders' meeting on March 19, 2009. SIDEKICK COMPUTER: Claims Filing Deadline is July 2 --------------------------------------------------- Creditors of Sidekick Computer Science LLC are requested to file their proofs of claim by July 2, 2009, to: Herr Leo Petersen Weiernmatt 16 8708 Mannedorf Switzerland The company is currently undergoing liquidation in Mannedorf. The decision about liquidation was accepted at an extraordinary shareholders' meeting on Feb. 16, 2009. ============= U K R A I N E ============= INTAR-INVEST LLC: Creditors Must File Claims by May 22 ------------------------------------------------------ Creditors of LLC Investment Company Intar-Invest (code EDRPOU 21615183) have until May 22, 2009, to submit proofs of claim to: V. Varakina Insolvency Manager Balochnaya St. 3 Makeyevka Donetsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 3, 2009. The case is docketed under Case No. 44/177-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 Investment Company Intar-Invest Office 414 Gnat Yura St. 9 03148 Kiev Ukraine LVOV METALLURGICAL: Creditors Must File Claims by May 23 -------------------------------------------------------- Creditors of LLC Lvov Metallurgical Company (code EDRPOU 30706786) have until May 23, 2009, to submit proofs of claim to: O. Gentash Insolvency Manager Sheptitsky St. 39/1 Sokal 80000 Lvov Ukraine The Economic Court of Lvov region commenced bankruptcy proceedings against the company on March 31, 2009. The case is docketed under Case No. 8/18. The Court is located at: The Economic Court of Lvov Lichakovskaya St. 128 79010 Lvov Ukraine The Debtor can be reached at: LLC Lvov Metallurgical Company Bazarnaya St. 50/23 79000 Lvov Ukraine UKRTECHNOSVIT LLC: Creditors Must File Claims by May 22 ------------------------------------------------------- Creditors of LLC Trading House Ukrtechnosvit (code EDRPOU 36010338) have until May 22, 2009, to submit proofs of claim to: V. Shelupets Insolvency Manager F. Kon St. 5 Donetsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 3, 2009. The case is docketed under Case No. 44/176-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 Trading House Ukrtechnosvit Kurskaya St. 10 03049 Kiev Ukraine VOSTOK 2003: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Economic Court of Dnepropetrovsk commenced bankruptcy supervision procedure on LLC Vostok 2003 (code EDRPOU 32551935). The Insolvency Manager is: O. Usachev Office 27 Sachko St. 26 Dneprodzerzhynsk 51931 Dnepropetrovsk Ukraine The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Vostok 2003 Industrialnaya str. 9a Elizavetovka Petrikovsky 51939 Dnepropetrovsk Ukraine * Moody's Cuts Deposit Ratings on 19 Ukrainian Banks to 'B3' ------------------------------------------------------------ Moody's Investors Service downgraded the global foreign currency deposit ratings of 19 Ukrainian banks to B3 from B2 and the foreign currency debt ratings of five Ukrainian banks to B1 from Ba3. Moody's also downgraded the local currency debt ratings of two Ukrainian banks. The outlook is negative on the long-term GFC deposit ratings and the long-term foreign currency debt ratings affected by this rating action. Moody's rating action was triggered by (i) the downgrade of Ukraine's foreign currency bank deposit ceiling to B3 with negative outlook from B2, (ii) the downgrade of Ukraine's foreign currency bond ceiling to B1 with negative outlook from Ba3 and (iii) the downgrade of Ukraine's local currency bond ceiling to Ba1 from A3. Moody's decision to downgrade Ukraine's deposit and debt ceilings and the government's bond ratings reflects the rating agency's concerns about the deterioration of the macroeconomic environment and the banking system, persistent political uncertainty and tighter capital control regulations in Ukraine. The long-term GFC deposit ratings of these banks were downgraded to B3 (from B2) with a negative outlook: -- Calyon Bank Ukraine -- Dongorbank -- First Ukrainian International Bank -- Forum Bank -- ING Bank Ukraine -- Khreschatyk Bank -- OTP Bank Ukraine -- Pivdennyi Bank -- Pravex-Bank -- Privatbank Commercial Bank -- Raiffeisen Bank Aval -- Savings Bank of Ukraine -- Subsidiary Bank Sberbank of Russia -- Swedbank Invest -- Swedbank OJSC -- Ukreximbank -- Ukrsibbank -- Ukrsotsbank -- VAB Bank The long-term foreign currency debt ratings of these banks were downgraded to B1 (from Ba3) with a negative outlook: -- Forum Bank -- Privatbank Commercial Bank -- Ukreximbank -- Ukrsibbank -- Ukrsotsbank At the same time, Raiffeisen Bank Aval's local currency debt rating was downgraded to Ba1 from Baa3, while its national scale rating was downgraded to Aa1.ua from Aaa.ua. Ukrsotsbank's local currency debt rating was downgraded to Ba1 from Baa3. Moody's previous rating action on Calyon Bank Ukraine was on 2 April 2009 when Moody's downgraded the bank's local currency deposit rating to Ba2 from Ba1, its local currency debt rating to Ba2 from Ba1 and its national scale debt rating to Aa1.ua from Aaa.ua. Moody's previous rating action on Dongorbank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on First Ukrainian International Bank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Forum Bank was on 25 February 2009 when its B2 GFC long-term deposit rating and Ba3 long-term foreign currency debt rating were placed on review for possible downgrade. Moody's previous rating action on ING Bank Ukraine was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Khreschatyk Bank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on OTP Bank Ukraine was on 2 April 2009 when the bank's D BFSR was placed on review for possible downgrade. Moody's previous rating action on Pivdennyi Bank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Pravex-Bank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Privatbank was on 25 February 2009 when its B2 GFC long-term deposit rating and Ba3 long-term foreign currency debt rating were placed on review for possible downgrade. Moody's previous rating action on Raiffeisen Bank Aval was on 2 April 2009 when the bank's D BFSR was placed on review for possible downgrade. Moody's previous rating action on Savings Bank of Ukraine was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Subsidiary Bank Sberbank of Russia was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Swedbank was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Swedbank Invest was on 25 February 2009 when its B2 GFC long-term deposit rating was placed on review for possible downgrade. Moody's previous rating action on Ukreximbank was on 30 December 2008 when its B2 GFC long-term deposit rating and Ba3 long-term foreign currency debt rating were placed on review for possible downgrade. Moody's previous rating action on Ukrsibbank was on 2 April 2009 when the bank's BFSR of D was placed on review for possible downgrade. Moody's previous rating action on Ukrsotsbank was on 2 April 2009 when the bank's BFSR of D was placed on review for possible downgrade. Moody's previous rating action on VAB Bank was on 2 April 2009 when Moody's placed the bank's B2 debt and deposit ratings on review for possible downgrade. * Moody's Cuts Ukraine's Currency Government Bond Ratings to 'B2' ----------------------------------------------------------------- Moody's Investors Service downgraded Ukraine's foreign and local currency government bond ratings to B2 from B1, and assigned a negative outlook, mainly to reflect the continuing fragility of both the Ukrainian macroeconomy and its banking system. "A supplementary reason for the downgrades is the uncertainty generated by a series of capital controls implemented by the National Bank of Ukraine to ration foreign currency," said Moody's Vice President Jonathan Schiffer. "These controls have already contributed to a foreign payments default by one of Ukraine's banks." Schiffer said that such capital controls heighten the possibility of default by Ukrainian corporations and banks on foreign currency debt payments if they remain in place, especially coming on top of existing controls on both domestic and foreign currency term bank deposits. "Tighter NBU regulatory intervention may in turn have negative consequences for both domestic and foreign investments in future," warned Schiffer. The analyst said there has been some good news for Ukraine recently, when the International Monetary Fund released the 2nd and 3rd tranches of Ukraine's 2-year stand-by agreement. In addition, there has been continued, steady progress on the bank restructuring and recapitalization project carried out jointly by the National Bank and the IMF. Still, said Schiffer, Ukraine's macroeconomic situation has deteriorated and non-performing loans continue to escalate rapidly, posing further risks to the banking system and, ultimately, currency stability. He said that such risks are complicated by continued political rivalry between the Prime Minister and President in the run-up to the forthcoming Presidential election, currently scheduled for autumn. This competition is also influencing economic policy and institutions via the medium of both budget formulation and activities of the National Bank and will continue to cause tensions in government discussions with the IMF. The negative outlook on key Ukrainian sovereign credit ratings means that Moody's will continue to monitor closely the ability of both the government and the National Bank of Ukraine to deal with the economic and financial stresses. A key focus will be the bank recapitalization scheme; Moody's will continue to monitor this activity closely to weigh the final costs and consequences. In related rating actions, Moody's also downgraded the foreign currency country ceiling for bonds to B1 from Ba3, and the ceiling for foreign currency bank deposits to B3 from B2, both with a negative outlook. The local currency country bond ceiling was also downgraded to Ba1 from A3, while the local currency bank deposit ceiling rating was affirmed at Ba1. The last rating action with respect to Ukraine was implemented on Feb. 24, 2009, when the government's B1 ratings as well as the B2 foreign currency bank deposit country ceiling and Ba3 foreign currency bond country ceiling were placed on review for downgrade. Press releases concerning Moody's rating actions on related issuers will follow this announcement in due course. * UKRAINE: IMF Approves US$2.8 Bln Disbursement Under SBA --------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on Friday, May 8, 2009, completed the first review of Ukraine's economic performance under the 2-year Stand-By Arrangement (SBA), and approved the immediate release of the second tranche under the arrangement equivalent to SDR 1.9 billion (about US$2.8 billion). This will bring total disbursements under the SBA to SDR 4.9 billion (about US$7.3 billion). With the completion of this review, the Executive Board agreed to rephase the disbursements under the SBA, including the increase of this second tranche from the original amount of SDR 1.3 billion (about US$1.9 billion). The Board also granted waivers of nonobservance of performance criteria pertaining to the cash deficit of the central government, the passage of the budget, exchange rate restrictions, multiple currency practices, and the imposition of import restrictions, which the authorities have agreed to remove fully in the near future. The SBA with Ukraine was approved on November 5, 2008 in an amount equivalent to SDR 11 billion. Following the Executive Board discussion, Mr. John Lipsky, First Deputy Managing Director and Acting Chair said: "Ukraine's economy has been hit very hard by the deep and protracted slowdown of the world economy. Weakening economic activity has led to a sharp decline in fiscal revenues, while strains in global financial markets have put additional stress on an already fragile banking system. These developments have called for significant policy adjustments. The authorities' revised economic program, supported by a Stand-By Arrangement with the Fund, seeks to mitigate the effects of the global crisis, restore confidence in the banking system, and preserve fiscal sustainability while protecting the most vulnerable segments of the population. "The revised economic program targets a government deficit of 4 percent of GDP in 2009, compared to a balanced budget under the original program. This revision aims to strike a balance between cushioning the economic downturn and preserving medium-term fiscal sustainability. From this perspective, the authorities' intention to implement important structural reforms, including pension and tax reforms, by end- 2009 is welcome. "The National Bank of Ukraine has reaffirmed its commitment to implementing a flexible exchange rate policy. Adherence to this commitment is key to helping the economy adjust to external shocks, discouraging dollarization and excessive risk taking by unhedged borrowers, and allowing monetary policy to focus on inflation objectives. Given the potential negative balance sheet effects, the National Bank of Ukraine is prepared to tighten monetary policy if needed, to avoid excessive exchange rate depreciation. The authorities should phase out administrative measures, import surcharges, and restrictions limiting exchange rate flexibility without further delays. "A key priority of the authorities is to restore confidence in the banking system . The diagnostic phase of the bank recapitalization program has progressed well, and several problem banks have been intervened. The authorities are committed to proceed with the state capitalization of the systemic problem banks in an orderly and transparent manner and have taken measures to safeguard bank assets in the interim. They are committed to make the necessary legal amendments to advance the bank recapitalization and resolution program, and to continue to implement reforms in this area in consultation with Fund staff," Mr. Lipsky said. =========================== U N I T E D K I N G D O M =========================== A & J BADMAN: Appoints Joint Liquidators from BDO Stoy ------------------------------------------------------ Graham David Randall and Simon Edward Jex Girling of BDO Stoy Hayward LLP were appointed joint liquidators of & J Badman Ltd. on April 8, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through BDO Stoy Hayward LLP at: One Victoria Street Bristol BS1 6AA England ANGLO-WELSH UTILITIES: Brings in Joint Liquidators from BDO Stoy ---------------------------------------------------------------- Graham David Randall and Mark Peter George Roach of BDO Stoy Hayward LLP were appointed joint liquidators of Anglo-Welsh Utilities Ltd. on April 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through BDO Stoy Hayward LLP at: Fourth Floor One Victoria Street Bristol BS1 6AA England AVANTI AIR: Taps Joint Liquidators from Baker Tilly --------------------------------------------------- Lindsey Jane Cooper and Donald Bailey of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of Avanti Air Conditioning Ltd. on March 31, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: 3 Hardman Street Manchester M3 3HF England AXA FUND: Claims Filing Deadline is June 19 ------------------------------------------- Axa Fund Managers Limited's creditors have until June 19, 2009, to prove their claims against the company. Proofs of claim must be sent on or before the deadline to the company's joint liquidators, Jeremy Simon Spratt and Finbarr Thomas O'Connell at this address: KPMG Restructuring 8 Salisbury Square London EC4Y 888 The company said it "is able to pay all its known liabilities in full." BERNARD L MADOFF: May 27 Hearing on UK Unit's Chapter 15 Petition ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on May 27, 2009, to consider a request for recognition of Madoff Securities International Ltd.'s case in the United Kingdom as the "foreign main proceeding". The Chapter 15 petition by the liquidators of MSIL was filed in the U.S. Bankruptcy Court for the District of Florida but was transferred to Manhattan, where the involuntary Chapter 7 case of Bernard L. Madoff and the SIPA proceedings for his firm BLMIS are pending. MSIL was Madoff's European money management business. Its liquidators are seeking, among other things, to recover certain amounts and property transferred to Mr. Madoff's brother, Peter Madoff. Chapter 15 of U.S. Bankruptcy Code is designed to block U.S. lawsuits against foreign companies with U.S. operations while they reorganize overseas. Irving Picard, the trustee charged with unraveling Bernard L. Madoff Investment Securities LLC, gained power of attorney over Madoff's London business through a March 23 order by a U.S. judge, Bloomberg said. About Bernard L Madoff 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 US$50 billion. Also on December 15, 2008, the Honorable Louis A. Stanton of the U.S. District 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. BURLINGTON DIGITAL: Appoints Liquidators from Tenon Recovery ------------------------------------------------------------ Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of Burlington Digital Print Ltd. on April 8, 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 CADOGAN BISTROS: Taps Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Andrew James Pear and Ian Cadlock of Tenon Recovery were appointed joint liquidators of Cadogan Bistros Ltd. on April 2, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Third Floor Lyndean House 43/46 Queens Road Brighton East Sussex BN1 3XB England CENTRAL METAL: Goes Into Administration; 63 Jobs Axed ----------------------------------------------------- Central Metal Manufacturers has gone into administration, resulting in the loss of 63 jobs, thisisleicestershire.co.uk reports. "The economic downturn combined with a contraction in the manufacturing sector has severely impacted on Central Metal Manufacturing and led to its administration," the report quoted administrator Joanne Wright, of restructuring firm BDO Stoy Hayward, as saying. The administrator is currently seeking a buyer for the business, which is continuing to trade, the report discloses. Located in Merry Lees industrial estate, near Desford, Central Metal Manufacturers makes metal sheet products for a range of industries, the report says. CENTRAL METAL: Business Offered for Sale ---------------------------------------- Central Metal Manufacturing Ltd's joint administrators, Joanne Wright and Geoffrey Kinlan, offer for sale the company's metal fabrication business and assets. For further information, contact Mark Harrison at 0121 265 7233. CITY GENERAL: Policyholders Can File Claims Until Oct. 21 --------------------------------------------------------- Eligible policyholders at City General Insurance Company Limited have until October 21, 2009 to prove their claims against the company. Completed claim forms must be sent on or before the deadline to: City General Insurance Company Limited 3rd Floor, No. 1 Liverpool Street London EC2M 7QD Fax: +44 (0)20 7956 2376 For more information, call the company at +44 (0)20 7956 2877. CLEAR PLC: Moody's Withdraws 'Ca' Rating on JPY1 Bil. Notes ----------------------------------------------------------- Moody's Investors Service announced it has withdrawn its ratings of one class of notes issued by Clear PLC The rating action follows the repurchase in full of the notes on April 28, 2009. The rating action is: Clear PLC: (1) Series 60 JPY1,000,000,000 Limited Recourse Secured Credit- Linked Notes due 2017 -- Current Rating: WR -- Prior Rating: Ca -- Prior Rating Date: 10 March 2009, downgraded to Ca from Caa2 CRACK BONDING: Taps Joint Liquidators from Smith & Williamson ------------------------------------------------------------- Robert William Leslie Horton and Anthony Murphy of Smith & Williamson Limited were appointed joint liquidators of Crack Bonding Repairs Ltd. on April 6, 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 D & P CAIRNS: Appoints Joint Liquidators from Tenon Recovery ------------------------------------------------------------ Stanley Donald Burkett-Coltman and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of D & P Cairns Ltd. on Feb. 25, 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 EBI MANUFACTURING: Business Up for Sale --------------------------------------- Ebi Manufacturing's joint administrators, John Sallabank and Paul Boyle of Harrisons, offer for sale the business and assets of the company. The company is a designer, importer and distributor of underwear. For more information, contact Ann Brodie at 0161 876 4567. ENTERPRISE INNS: Scraps First-Half Dividend to Repay Debt --------------------------------------------------------- Amy Wilson at Telegraph.co.uk reports that Enterprise Inns plc has scrapped it first-half dividend to repay debt. The company, the report relates, paid a 5.8p dividend in the first half last year. According to the report, the company has paid down GBP58 million over the last 12 months, bringing down its net debt to GBP3.8 billion. The company, which has a GBP1 billion bank facility due for renewal in 2011, stressed it was not in danger of breaching bond or loan terms. The company, as cited in the report, said it is "confident that adequate banking facilities will be available" when the time comes to refinance. The company's pre-tax profits fell to GBP9 million from GBP122 million the previous year, after it paid one-off charges of GBP94 million linked to lower property prices and the value of interest- rate swaps. Its revenue declined 7.8pc to GBP404 million, the report states. "We expect trading conditions to be challenging through the second half of the year," the report quoted Enterprise chief executive Ted Tuppen as saying. The company has property assets worth GBP5.6 billion at the end of the first half, the report discloses. It plans to sell 10pc of its 7,600-pub estate in the next three years, with up to 300 sites to go this year, the report says. Headquartered in Solihull, Enterprise Inns plc -- http://www.enterpriseinns.com-- is a leased and tenanted pub operator in the United Kingdom. As of September 30, 2008, it owned 7,763 pubs. The Company's wholly owned subsidiaries include Unique Pub Properties Limited, which is engaged in the ownership of licensed properties; The Unique Pub Finance Company plc, which is engaged in the financing acquisitions of licensed property, and Voyager Pub Group Limited, which is a borrower of secured bank facility. * * * Enterprise Inns plc currently carries a 'Ba3' long-term corporate family rating from Moody's Investors Service with a stable outlook. HIGHLANDS INSURANCE: Scheme Meeting Slated for June 18 ------------------------------------------------------ The High Court of Justice in England scheduled a meeting to consider a scheme of arrangement between Highlands Insurance Company (UK) Limited and its creditors. The meeting will be held on June 18, 2009 at 10:00 a.m. at this address: PricewaterhouseCoopers LLP One Embankment Place London WC2N 6RH INMARSAT HOLDINGS: S&P Puts 'BB-' Debt Rating on Positive Watch --------------------------------------------------------------- Standard & Poor's Ratings Services said that it placed the ratings of U.K.-based mobile satellite services provider Inmarsat Holdings Ltd. and related entities on CreditWatch with positive implications following the completion of its purchase of Stratos. In addition, Standard & Poor's placed its 'BBB-' debt rating on Inmarsat Investments Ltd.'s US$550 million senior secured facilities, its 'BB' debt rating on US$163.7 callable notes issued by Inmarsat Finance PLC and guaranteed by Inmarsat Ventures Ltd., and its 'BB-' debt rating on the US$450 million senior discount notes issued by Inmarsat Finance II PLC and guaranteed by Inmarsat Holdings Ltd on CreditWatch with positive implications. The recovery ratings on these debt issues are unchanged at '1', '3', and '5', indicating S&P's recovery expectations of 90%-100%, 50%- 70%, and 10%-30%, respectively. "The CreditWatch placement follows the completion by Inmarsat of the purchase of Stratos, its main distributor, on April 15, 2009. This transaction, in S&P's view, reflects a strengthening of Inmarsat's business risk profile due to the benefits of vertical integration," said Standard & Poor's credit analyst Michael O'Brien. Stratos was the source of 43.6% of Inmarsat's core revenues in 2008. Together with the renewal of framework distribution agreements, S&P considers that Inmarsat's position in the mobile satellite services industry will be strengthened. This should enable the group to address the needs of its customers more directly and shape product offerings and traffic growth to the benefit of the industry overall. In addition, Inmarsat's operating performance has proved resilient in the economic downturn so far. Such resilience is due to its strong position and growth opportunities in the maritime data market--despite pressures on the shipping industry--and good diversification of revenues across customer segments such as leasing and aeronautical. These continue to show demand growth and there is also continued growth in active terminals, which provides support. Inmarsat's policy on leverage and dividends has not substantially changed following the completion of the Stratos transaction, and S&P does not anticipate that it will do so. S&P anticipates adjusted debt to EBITDA (including Stratos) of not more than 3.5x. This provides some headroom against adjusted debt to EBITDA of 3.2x for the 12 months ended March 31, 2009. Inmarsat's capital expenditures have moderated following the launch of its three high-bandwidth I-4 satellites over the past four years. S&P therefore expect free operating cash flow generation to increase, despite the higher cash interest burden resulting from the fact that Inmarsat's US$450 million senior discount notes now pay cash interest. Better coverage of dividends by FOCF should, however, contribute to an improvement in the group's financial risk profile. "Inmarsat's ratings are likely to be raised by one notch following the confirmation of the refinancing of its US$550 million senior facilities due May 2010, of which US$390 was outstanding at March 31, 2009," added Mr. O'Brien. "An upgrade would also require that Inmarsat maintains a prudent financial policy, particularly with regard to share buybacks, and maintains adequate liquidity and covenant headroom on outstanding debt instruments." JEDBURGH KILTMAKERS: Taps Joint Liquidators from Tenon Recovery --------------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed joint liquidators of Jedburgh Kiltmakers Ltd. on April 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: The Poynt 45 Wollaton Street Nottingham NG1 5FW England NORTHERN ROCK: Commission Extends In-Depth Probe Into UK Aid ------------------------------------------------------------ The European Commission on Thursday, May 7, 2009, extended the scope of its in-depth investigation under EC Treaty state aid rules, launched on April 2, 2008, into a UK aid package for Northern Rock, following substantial amendments notified on March 30, 2009. The main change introduced is the split of Northern Rock into a 'good' bank, which would continue commercial activities, and a 'bad' bank with most of the previous mortgage loans, which would be wound down. The Commission has to examine, whether the changes will enable Northern Rock to return to long- term viability while avoiding undue distortions of competition. The extension of the in-depth investigation gives interested parties the possibility to comment on the proposed measures; it does not prejudge the outcome. Competition Commissioner Neelie Kroes said "The Commission needs to look into the changes made by the UK to the original package for Northern Rock, to ensure legal certainty. I n view of the large scale of the aid measures this is standard procedure." Northern Rock plc, based in Newcastle-upon-Tyne, was the UK's 5th largest mortgage bank with a balance-sheet total of GBP101 billion (then EUR150 billion) as of December 31, 2006. Northern Rock's core activity is residential mortgage lending, which represents more than 90% of all outstanding loans made by the bank. On December 5, 2007 the Commission authorized rescue aid for Northern Rock. On March 17, 2008, the UK notified a restructuring plan for Northern Rock. The Commission opened a formal investigation on April 2, 2008, to assess the package with regard to Northern Rock's prospects for a return to long-term viability. In the same decision, the Commission also authorized another rescue aid measure for Northern Rock. On March 30, 2009, the UK authorities notified substantial amendments to the support package for Northern Rock. The recent decision extends the scope of the Commission's investigation, to take account of these changes. The original plan submitted by the UK authorities provided for a reduction in Northern Rock's lending operations and in the size of its balance sheet. Over the period of the plan, the bank would have repaid the loans granted by the Bank of England and the UK Government guarantees on its funding operations in the deposit and wholesale funding markets would have been gradually phased out. The bank would have needed to find funding from other sources, notably by rebuilding the level of its retail deposits. The amended plan provides for a split-up of Northern Rock into two new entities, a relatively small bank containing all the good quality assets, the mortgage writing platform and the retail deposits and a "bad bank" which would hold the vast majority of the mortgage loans made by Northern Rock in the past. The "bad bank" would be wound down on a solvent basis, where the UK State would support the losses incurred on the risky mortgage loans made by Northern Rock in the past. Not all details of the plan have been communicated to the Commission and the recent decision requests further information from the UK authorities. The decision also invites third parties to comment on whether the plan's proposals for avoiding undue distortions of competition are adequate. Background As a consequence of the ongoing turbulence in the world�s financial markets, a significant rationing of funds in the sterling money markets occurred in August and September 2007 and the mortgage securitization market virtually closed. This created severe liquidity difficulties for Northern Rock, whose business model was particularly reliant on frequently raising finance in these markets. RADIOSCAPE LTD: Assets Put Up for Sale -------------------------------------- Radioscape Limited's joint administrators, Mark Hopkins and Matthew Hammond, offer for sale the company's business and assets. The company is a London-based provider of digital radio broadcast systems. For further information, contact: Rachael Wilkinson PricewaterhouseCoopers LLP Tel: 01509 604138 Fax: 01509 604035 -or- Ian Leaman Buckingham Corporate Finance Limited Tel: 020 7798 2832 Fax: 020 7798 2838 RED DESIGN: Proofs of Claim Deadline is May 20 ---------------------------------------------- Red Design & Build Limited's creditors have until noon on May 20, 2009, to submit their proofs of claim to the company's joint administrators: David Thurgood -and- David Dunckley Red Design & Build Limited c/o Grant Thornton UK LLP 30 Finsbury Square London EC2P 2YU ROBERT CULLEN: Bought Out of Administration by Former Owner ----------------------------------------------------------- Josh Brooks at packagingnews.co.uk reports that Robert Cullen & Sons has been bought out of administration by its former owner and chairman of Hamilton Academicals Football Club Ronnie MacDonald for an undisclosed sum. The deal, the report discloses, has secured 87 jobs at the company, which went into administration on Feb. 11 with debts of around GBP10.5 million. According to the report, Robert Cullen and Sons has been bought by a new company, Robert Cullen Limited, which is backed by Mr. MacDonald and Allied Irish Bank. The report relates Mr. MacDonald told local newspaper The Herald: "I wanted to buy the company back because I felt it had a magnificent workforce. I felt, with firm leadership, it could be the successful company it used to be." On Feb. 26, 2009, the Troubled Company Reporter-Europe, citing packagingnews.co.uk, reported Zolfo Cooper's Fraser Gray, Elizabeth Mackay and Anne O'Keefe were appointed joint administrators of the company on Feb. 11. Robert Cullen & Sons produces a range of products including retail-ready packaging and recycling bins. It employs 150 people at its Glasgow facility, packagingnews.co.uk stated. ROYAL BANK: John Hourican Gains GBP11MM From Share Option Package ----------------------------------------------------------------- Nick Goodway at London Evening Standard reports that John Hourican, head of global markets and banking division at Royal Bank of Scotland Group plc, has gained GBP11 million from a share option package he was awarded only last month. London Evening Standard relates in April Mr. Hourican was given a share and option package worth GBP6 million. According to Telegraph.co.uk, Mr. Hourican, who was previously chief financial officer of ABN Amro, after it was bought by RBS, was granted 21.3m shares and 7.4m options. Telegraph.co.uk notes the latter are exercisable at 28.2p, the closing share price on April 2, the day before the award was made. London Evening Standard states since then the bank's share price soared from 28.2p to 46.1p and increased the potential value of Mr. Hourican's reward to GBP11 million. London Evening Standard says the shares and option rewards depend on Mr. Hourican hitting demanding performance hurdles over the next three years and he is able to take up the package at any time until 2019. "All share awards are entirely hypothetical until and unless he succeeds and RBS succeeds in its core mission. He won't receive a penny if he doesn't deliver for the group," London Evening Standard quoted an RBS spokesman as saying. Telegraph.co.uk discloses the part-nationalized bank is six months into a five-year turnaround plan, which involves reducing leverage and restoring profitability. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. SAMURAI-SEC LTD: Taps Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Joanne Kim Rolls and S. J. Parker of Tenon Recovery were appointed joint liquidators of Samurai-Sec Ltd. on April 8, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: Samurai-Sec Ltd. Sherlock House 73 Baker Street London England SCOTTISH LION: Files Scheme of Arrangement Petition --------------------------------------------------- The Scottish Lion Insurance Company Limited has presented to the Court of Session in Scotland a petition for sanction of a scheme of arrrangement between the company and its creditors. Any person claiming an interest may lodge answers to the petition by June 18, 2009, at the: Offices of Court Court of Session Parliamant House Parliament Square Edinburgh EH1 1RQ For more information, contact: Morton Fraser LLP (the company's Scottish Solicitors) Attn: Joy Barnard 30-31 Queen Street Edinburgh EH2 1JX Tel: +44 (0)131 247 1102 Fax: +44 (0)131 247 1004 -or- Mayer Brown International LLP (the company's English Solicitors) Attn: Ian McKenna or Sarah Russell Level 31, 30 St., Mary Avenue London EC1A 8EP Tel: +44 (0)20 7398 4611 Fax: +44 (0)20 7623 7965 THPA FINANCE: Fitch Puts 'BB' Rating on Class C Notes on Neg Watch ------------------------------------------------------------------ Fitch Ratings has placed THPA Finance Limited's notes on Rating Watch Negative: -- GBP145 million class A2 secured 7.127% fixed-rate notes due 2024: rated 'A'; placed on RWN -- GBP70 million class B secured 8.241% fixed-rate notes due 2028: rated 'BBB'; placed on RWN -- GBP30 million class C secured floating-rate notes due 2031: rated 'BB'; placed on RWN THPA is a securitization of the assets held, and earnings generated, by the PD Ports group which owns the port of Tees & Hartlepool on the northeast coast of England. The rating action follows Corus' recent announcement that it might have to close its Redcar steel plant located at Teesport in northeast England. Corus has justified this potential move as a direct consequence of the apparent decision by the four off-takers to cancel their agreement to buy 78% of the Redcar plant's production until 2014. Corus said the consortium's withdrawal had made the plant's ongoing operations unviable. Fitch estimates that the loss of revenues generated by the imports of iron and ore and the handling of slab steel production for export through Teesport, could directly reduce THPA's EBITDA by up to 25%. Fitch will aim to resolve the RWN on all notes once more certainty emerges about the plant's future or its impact on PD Ports' activities. If the potential closure of the plant is confirmed, and assuming all else remains equal, the most likely outcome for the class A2 notes would be an affirmation or a downgrade by one notch, whilst the class B and class C notes would most likely be downgraded by one or two notches respectively. Further developments, including the potential impact on the port's operations, will be closely monitored by Fitch going forward. UBS AG: Moody's Junks Ratings on Series 6481 Notes from 'Ba2' ------------------------------------------------------------- Moody's Investors Service announced it has downgraded its rating of one class of CDO notes issued by UBS AG, Jersey Branch. The transaction is a synthetic CDO referencing a pool of 107 corporate and sovereign entities, with approximately 22% of the pool consisting of financial services entities. According to Moody's, 16% of the reference pool suffered a downward credit rating migration greater than had been anticipated by Moody's forward looking measures, leading to the rating action. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating action is: UBS AG, Jersey Branch (1) Series 6481 CHF25,000,000 Credit Linked Notes -- Current Rating: Caa1 -- Prior Rating: Ba2 -- Prior Rating Date: 10 March 2009, downgraded to Ba2 from A2 ULTRALIFE LIMITED: Business Up for Sale --------------------------------------- Ultralife Limited's joint administrator, Stephen Goderski of Geoffrey Martin & Co, offers for sale the company's business and assets. The company is a Buckinghamshire-based manufacturer of nutritional supplements. For further information, contact Sarah Brinkely at: Tel: 020 7495 1100 Fax: 020 7495 1144 W H WESSON: Appoints Joint Liquidators from Tenon Recovery ---------------------------------------------------------- Andrew James Pear and Ian Cadlock of Tenon Recovery were appointed joint liquidators of W H Wesson (Fencing) Ltd. on March 28, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Third Floor Lyndean House 43/46 Queens Road Brighton East Sussex BN1 3XB England WIRRAL COMMUNITY: Goes Into Administration, LDP Says ---------------------------------------------------- Wirral Community Transport, a major transport provider for education and social services in Wirral which operated as a charity, has gone into administration, Liam Murphy at Liverpool Daily Post reports. The report relates according to accounts for the year ending March, 2007 -- the most recent on record lodged with the Charity Commission -- the transport company employed 72 people and had 14 volunteers. The report discloses according to the information provided during that year, the charity's income was GBP1,436,877 while its spending was GBP1,594,399. * Moody's Takes Various Selective Rating Actions on Five UK Banks ----------------------------------------------------------------- Moody's Investors Service has taken selective rating actions on five UK banks. The institutions included in these actions are Close Brothers Limited, Clydesdale Bank, Co-operative Bank, Standard Bank plc, and Lloyds TSB Offshore Limited. The ratings of Investec Bank plc and ICICI Bank UK have been affirmed. The rating action follows the earlier rating actions on UK mortgage lenders which had been announced on April 14, primarily triggered by Moody's concern that the global economic crisis will lead to significantly higher credit losses than previously anticipated, and Moody's continued expectation of both parental and systemic support for the senior obligations of some of these banks where appropriate. "The key factor in these rating actions is Moody's concern that capitalization levels will come under pressure over the next quarters as the deteriorating economic conditions in the UK and globally will lead to significantly higher credit losses, particularly for the banks in their corporate banking and commercial real estate assets" said Ross Abercromby, VP/Senior Analyst. For those banks with residential mortgage exposure (primarily Co- operative Bank and Clydesdale Bank) these rating actions, as with Moody's recent rating actions on the UK mortgage lenders, include the results derived from the analysis of various stress scenarios, incorporating a peak-to-trough house price decline of 40% for Moody's base scenario. In addition Moody's have also stressed the commercial real estate and other loan portfolios of the banks based on information provided by the banks and Moody's own assumptions. These expected losses were compared to the capital positions of the banks and also took into account likely pre- provision income for the next year. The key concerns for these banks was the amount of capital available to absorb the upcoming losses, especially those arising from corporate banking, commercial real estate assets, including residential development lending, and residential mortgage assets, as well as future earnings capacity of the banks that directly affects their ability to add to or replenish their capital base. The bank deposit and senior debt ratings of the banks continue to incorporate Moody's expectation of both parental and systemic support (where appropriate) and are in line with Moody's expectation that banks in highly rated countries will receive or are likely to receive support depending on their level of systemic importance as well as their importance to their parent, if any. In addition, the subordinated debt of these institutions has also been downgraded in line with Moody's concern that systemic support may not be extended to these instruments in the case of financial distress. Moody's notes that due to the potential lack of systemic support for the subordinated and hybrid securities in the U.K., the anchor for subordinated and hybrid debt ratings issued by these institutions will no longer be the supported debt and deposit rating, but the standalone intrinsic strength rating, the Baseline Credit Assessment which is derived from the BFSR, incorporating however any potential parental support. This change in Moody's rating of subordinated debt and hybrids in the UK follows the recent precedence on the exclusion of support on such instruments by the U.K. government in the case of the Dunfermline Building Society, and builds on the earlier example of Bradford & Bingley. In the case of Clydesdale Bank and Standard Bank Moody's have incorporated parental support into these ratings and this explains the A3 rating for subordinated and junior subordinated debt at Clydesdale, and the Baa1 (on review for possible downgrade) rating on Standard Bank's subordinated debt. Summary Of Rating Actions Close Brothers Limited: The A2/P-1C+ ratings are affirmed. The outlook is changed to negative from stable. The change in outlook to negative reflects the still very challenging economic environment in the UK and the likely impact that this will have on the bank's profitability and asset quality. The outlook change however also reflects the expected general resilience of CBL's business model during the current crisis including its continuing profitability, sound funding and comparatively strong capitalization. The outlook on the debt issued by Close Brothers Finance PLC, guaranteed by CBL, is also changed to negative. Clydesdale Bank: senior debt/deposit ratings are downgraded to A1 negative outlook from Aa3 negative outlook; the P-1 short-term rating is affirmed; the BFSR is downgraded to C- (BCA: Baa1) with a stable outlook from C+ (negative outlook); subordinated debt ratings are downgraded to A3. The downgrade of the BFSR to C- reflects the still very challenging economic environment in the UK and the impact that this is expected to have on the bank's profitability and asset quality. The downgrade of the long-term bank deposit and senior debt ratings to A1 reflects the lower BFSR, but also the rating agency's view on the high ongoing support from its parent, National Australia Bank (rated Aa1/B, negative outlook), and a moderate probability of systemic support from the Aaa-rated UK. The backed-Aaa ratings assigned to the UK government guaranteed debt is unaffected by this rating action. Co-operative Bank (Co-op Bank"): the A2/P-1 senior debt and bank deposit ratings are placed on review for possible downgrade; the BFSR is downgraded to C- (BCA: Baa1) from C and is also placed on review for possible downgrade; subordinated debt is downgraded to Baa2 from A3 and is also placed on review for possible downgrade. Similar to Clydesdale Bank the downgrade of the BFSR to C- from C reflects the difficult conditions in the UK and the impact that this is likely to have on the bank's profitability and asset quality. The review for possible downgrade on the C- BFSR will focus on the upcoming merger with Britannia Building Society (BFSR: D+ on review, direction uncertain) and the impact that the weaker position of the larger Britannia will have on the consolidated entity. The review for possible downgrade on the banks A2/P-1 long-term bank deposit and senior debt ratings will also focus on Moody's systemic support assumptions given the likely increasing systemic importance of the combined entity. Lloyds TSB Offshore Limited: the debt and deposit ratings are affirmed at A1/P1 with a stable outlook, and the outlook on the C BFSR is changed to negative from stable. The affirmation of the debt ratings reflects the ongoing expectation of a high level of parental support from Lloyds TSB Bank plc (rated Aa3/P1 with a stable outlook, C+ BFSR with a negative outlook). The change in outlook on Lloyds Offshore's BFSR reflects the fact that although the economies of the Islands are unlikely to deteriorate to the same extent as the UK, they are also subject to negative headwinds, and the bank's relatively large commercial property exposures could lead to an increase in impairments. It also reflects the high integration of Lloyds Offshore into Lloyds Banking Group, and the subsequent linkage of Lloyds Offshore's intrinsic financial strength with its parent. Standard Bank plc: the A3/P-2/C- ratings are placed on review for possible downgrade, as is the Baa1 long-term Issuer Rating of Standard International Holdings. The review for possible downgrade will concentrate on the group's ability to mitigate potential losses and pressure on its capital stemming from the increased volatility in most of the emerging market countries where Standard Bank plc operates. The review will also focus on the robustness of the group's risk management framework and effectiveness of its collateral valuation and hedging positions, which it extensively relies on for minimising its exposures and concentration risks. The ratings of ICICI Bank UK (Baa2/P-2/D) and of Investec Bank plc (Baa3/P-2/D+) have been affirmed, as recent rating actions had already incorporated the economic deterioration and the impact on their intrinsic and Debt and Deposit ratings. Moody's last rating action on Close Brothers Ltd was in April 2007 when the ratings were upgraded to A2/P-1/C+ from A3/P-2/C following the implementation of Moody's JDA and BFSR methodologies. The last rating action on Clydesdale Bank was on March 2, 2009 when the Aa3/Prime-1 ratings were affirmed, the BFSR was downgraded to C+ from B- and the outlook was changed to negative from stable. The last rating action on Co-operative Bank was on January 21, 2009 when the A2/Prime-1/C ratings were affirmed, and the outlook was changed to negative from stable, following the announcement of the proposed merger with Britannia Building Society. The last rating action on Lloyds TSB Offshore was on February 16, 2009 when the long-term bank deposit rating was downgraded to A1 from Aa2, following the downgrade of its parent. The last rating action on Standard Bank plc and SIH was on 12th of March, 2009 following the announcement regarding the acquisition of the Russian-based investment bank Troika-Dialog. The ratings of Standard Bank plc and SIH were placed on negative outlook. Structured Finance related rating actions, if any, are not covered by this press release. All of the banks included in this action are headquartered in the U.K. with the exception of Lloyds TSB Offshore that is headquartered in Jersey. * IMF Sees European Recovery from Economic Downturn in 2010 ----------------------------------------------------------- The International Monetary Fund (IMF) on Tuesday said that the severe economic downturn in Europe could end during the second half of 2010, followed by a gradual recovery, but that further policy actions, especially in the financial sector, will be essential to induce this recovery. In its Spring 2009 Regional Economic Outlook (REO) for Europe, the IMF notes economic activity is likely to contract most in emerging economies in the region this year, although activity may rebound slightly more in 2010 compared to the advanced economies of Europe. For Europe's advanced countries, the IMF forecasts a 4 percent contraction in 2009. The advance countries are still expected to record negative growth in 2010, though at a more moderate rate of 0.4 percent. For Europe's emerging economies, the IMF projects a 4.9 percent decline in 2009, with a return to growth of 0.7 percent in 2010. Inflation is expected to fall to very low levels in many countries, but outright deflation is likely to be avoided, according to the IMF. The risks around this overall economic scenario, however, still remain tilted to the downside, it warns. With low inflation, consumers could regain confidence earlier, but continued weak global demand could lengthen and deepen the recession. "The measures taken to counteract the deep recession in Europe have provided a good foundation for a gradual recovery, but further actions by policy makers, particularly in the financial sector, are needed to restore market trust and confidence, and accelerate the recovery," said Marek Belka, Director of the IMF�s European Department. These actions include continued provision of liquidity and engagement in credit easing where necessary; credible loss recognition in the financial system; recapitalization of viable institutions by the private sector, but with public support if needed; and ring-fencing of impaired assets where they constitute a significant part of balance sheets, and preferably through a private sector managed bad-bank construction with government support and funding. Macroeconomic policies are also needed to cushion the downturn. Fiscal policy needs to continue to support demand, combining rapid and extensive implementation of fiscal stimulus packages with a commitment to future fiscal consolidation. Monetary policy should be used to anchor inflation expectations solidly in positive territory, preempting deflationary risks. "What is mostly needed is a robust approach to coordination, in particular on financial and regional macroeconomic stability," Belka said. "Europe is the most economically integrated market economy in the world, and yet the policies to address the crisis have been undertaken at the national level. Without a well- coordinated effort in these areas, neither fiscal nor monetary policy efforts will work as effectively as they must to make sure that Europe is as vibrant and prosperous after the crisis as it was before. Europe is facing the economic storm of a lifetime and it urgently needs to weatherproof its institutions," added Belka, who also called for improving the EU's financial stability framework, going beyond the recommendations suggested earlier in 2009 in the report by the High-Level Group of Financial Supervision in the EU, chaired by Jacques de Larosi�re. Brief Summary of the Analytic Chapters in the 2009 Spring REO Chapter 2 of the 2009 Spring REO, entitled "Fiscal Policy in Advanced Economies: Effectiveness, Coordination, and Solvency Issues," concludes that while it is important for countries to support their economies in the face of an unprecedented slowdown, a clear and credible commitment to long-run fiscal discipline is now more essential than ever before: any loss of market confidence may lead to increases in long-term real interest rates and debt- service costs, partly offsetting the stimulus effects of measures taken to deal with the crisis and further adding to financing pressures. Any short-term fiscal action will have to be cast within a credible medium-term fiscal framework and envisage a fiscal correction as the crisis abates. Chapter 3, entitled "European Emerging Market in Crisis: Impact and Recovery," looks at the impact of the global financial crisis on emerging Europe and finds that for emerging market countries that became EU members, adherence to EU rules and institutions has helped to mitigate the impact of the crisis, although it has not shielded them completely. Also, the so called "EU halo effect"�or the phenomenon of lower bond spreads for New Member States in spite of rising vulnerabilities in some countries�has disappeared, while cross-country differences have increased. The chapter concludes that while the external environment and structural reform efforts will matter, the banking sector, which has played a central role in the run-up to the crisis, holds a key to the speed of recovery from the crisis. In the short term, bank recapitalizations seem unavoidable to prevent recessions from becoming protracted. In the medium term, recovery efforts will need to be supported by a strengthening of financial stability arrangements, including for cross-border activities, and the introduction of more forward-looking provisioning policies. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- May 12-15, 2009 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 10-13, 2009 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 25th Annual Bankruptcy & Restructuring Conference The Ritz-Carlton Orlando Grande Lakes Orlando, Florida Contact: http://www.aria.org/ June 11-14, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ July 29-Aug. 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Westin Hilton Head Island Resort & Spa, Hilton Head Island, S.C. Contact: http://www.abiworld.org/ Aug. 6-8, 2009 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Conference Hotel Hershey, Hershey, Pa. Contact: http://www.abiworld.org/ Sept. 10-11, 2009 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 2, 2009 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center, Washington, D.C. Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Oct. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Paris Las Vegas, Las Vegas, Nev. Contact: http://www.abiworld.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *