/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090717.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 Friday, July 17, 2009, Vol. 10, No. 140 Headlines A U S T R I A ADIUVA GMBH: Creditors Must File Claims by July 29 LEITINGER PRIVATSTIFTUNG: Claims Filing Deadline is July 31 F I N L A N D STORA ENSO: To Record US$575MM Write-down Related to NewPage Stake G E R M A N Y BAVARIA YACHTBAU: Lenders In Talks Over Debt-For-Equity Swap Deal GENERAL MOTORS: May Select Opel Buyer "Early Next Week" PORSCHE AUTOMOBIL: May Reach Sale Deal in Few Days, CEO Says I R E L A N D EGRET FUNDING: S&P Confirms Low-B Ratings on Class D & E Notes FLEET STREET: S&P Lowers Rating on Class D Notes to 'BB' OMEGA CAPITAL: S&P Raises Rating on Class A2-7N Notes From 'B-' QUALCERAM SHIRES: Ideal Standard Buys Four Subsidiaries I T A L Y BANCA ITALEASE: Banco Popolare Mulls EUR1 Bln Capital Increase K A Z A K H S T A N ALTAI MASTER: Creditors Must File Claims by July 24 KARAGASH MUNAI: Creditors Must File Claims by July 24 KOSTANAI CONSULTING: Creditors Must File Claims by July 24 METEX CJSC: Creditors Must File Claims by July 24 NATIONAL COMPANY: Moody's Cuts Senior Unsecured Rating to 'Ba1' UGLE SNUB: Creditors Must File Claims by July 24 K Y R G Y Z S T A N ALGA BI: Creditors Must File Claims by August 7 N E T H E R L A N D S NXP BV: S&P Raises Long-Term Corporate Credit Rating to 'CCC' R U S S I A ART-STROY LLC: Creditors Must File Claims by July 26 DAGESTAN LLC: Creditors Must File Claims by July 26 NAZRANSKIY LOW-POWERED: Creditors Must File Claims by July 26 REFORS LLC: Creditors Must File Claims by July 26 RTM OAO: Files for Bankruptcy in Moscow Arbitration Court STROY-ENERGO LLC: Creditors Must File Claims by July 26 * NOVOSIBIRSK: Fitch Changes Outlook to Neg., Keeps Low-B Ratings * PENZA: Fitch Affirms 'BB' Long-Term Foreign Currency Rating * TOMSK OBLAST: S&P Assigns 'B-/ruBBB' Senior Unsecured Rating S P A I N IM SABADELL: S&P Assigns 'B+' Rating on EUR216 Mil. Class B Notes RURALPYME 2: Moody's Lowers Rating on Class D Notes to 'Ca' RURALPYME 3: Moody's Junks Rating on EUR26.4 Mil. Class D Notes * S&P Puts Ratings on 9 Spanish ABS/RMBS Deals on Watch Negative S W I T Z E R L A N D CREVALOR GMBH: Creditors Must File Claims by July 31 IT-PROGRESS GMBH: Claims Filing Deadline is July 27 KOSMETIK ZURICH: Claims Filing Deadline is July 31 LOKALRADIO THURGAU AG: Claims Filing Deadline is July 31 U N I T E D K I N G D O M BAA: MAG Withdraws From Gatwick Bidding Race BARNSLEY HOUSE: KPMG Sells Barnsey House Hotel & The Village Pub CABLE & WIRELESS: Won't Provide Concessions on Executive Pay Plan CARLISLE CASTLE: Moody's Assigns 'Ba2' Rating on Class D Notes CATTLES PLC: Gets Six-Month Reprieve on GBP500-Mil. Debt INEOS GROUP: Creditors Agree to Reset Terms on US$10.3-Bil. Debt INTIMAS GROUP: In Administration; 200 Jobs at Risk TATA MOTORS: To Cut 300 Jobs and Halt X-Type Car Production WHITE TOWER: Debt Canceled; Payments on Loans Accelerated * Fitch Reports Slowdown in EMEA Capital Goods Sector Performance * BOOK REVIEW: Distressed Investment Banking - To the Abyss and ********* ============= A U S T R I A ============= ADIUVA GMBH: Creditors Must File Claims by July 29 -------------------------------------------------- Creditors of Adiuva GmbH have until July 29, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 12, 2009 at 9:20 a.m. For further information, contact the company's administrator: Dr. Johannes Leon Reichsratsstrasse 5 1010 Wien Austria Tel: 402 15 54 Fax: 402 15 54 54 E-mail: office@leonlaw.at LEITINGER PRIVATSTIFTUNG: Claims Filing Deadline is July 31 ----------------------------------------------------------- Creditors of Leitinger Privatstiftung have until July 31, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 12, 2009 at 10:10 a.m. For further information, contact the company's administrator: Dr. Georg Mi Neutorgasse 47/I 8010 Graz Austria Tel: 0316/82 06 20 Fax: 0316/82 06 20-4 E-mail: office@cgo-masseverwaltung.at ============= F I N L A N D ============= STORA ENSO: To Record US$575MM Write-down Related to NewPage Stake ------------------------------------------------------------------ Stora Enso Oyj, NewPage Corporation and NewPage's largest shareholder, Cerberus Capital Management, L.P., unveiled a plan to reorganize NewPage's capital structure through a series of concurrent transactions, including debt tender offers and a potential contribution and cancellation of a portion of the NewPage vendor note held by Stora Enso and the debt acquired by Cerberus. As a result of the concurrent transactions and poor prospects of an upturn in the market, Stora Enso will record a write-down of at maximum US$575 (EUR418 net of hedges) million related to its NewPage shareholding and vendor note as a non- recurring item in its second quarter 2009 results. The final write-down amount depends on the result of a tender offer by an affiliate of Cerberus and NewPage, the amount of the vendor note owned by Stora Enso that is contributed and cancelled as part of the concurrent transactions and the fair value of the remaining vendor note. This write-down will have a maximum impact of only US$308 (EUR212 net of hedges after tax) million on Stora Enso's equity because these unlisted shares and the vendor note have previously been revalued and the US$267 (EUR201) million change in their fair value has been recorded in equity as part of Other Comprehensive Income. As part of these concurrent transactions, Stora Enso's NewPage vendor note issued by NewPage Group with nominal value of US$200 million (EUR 142 million) and accrued interest may be partially (50-65%) contributed and cancelled. The conversion is subject to successful debt recapitalisation by NewPage and an affiliate of Cerberus, NewPage's indirect controlling shareholder, and their election to forgive debt in Cerberus' sole discretion. The concurrent transactions are expected to be finalised by the end of the third quarter of 2009. The concurrent transactions are intended to strengthen New Page's capital structure and its position as the leading coated paper producer in North America by increasing its operating flexibility. The vendor note formed part of the transaction consideration when Stora Enso finalised the divestment of its North American paper operations to NewPage on December 21, 2007. Following the contribution and cancellation of a portion of the vendor note, the percentage of NewPage shares owned by Stora Enso will remain 19.9%. Stora Enso's second quarter results will be announced on July 23, 2009. Headquartered in Helsinki, Finland, Stora Enso Oyj -- http://www.storaenso.com/-- is a global paper, packaging and forest products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. Stora Enso employs 29,000 people worldwide, and our sales in 2008 amounted to EUR11 billion. During the year ended December 31, 2008, the annual production for the Company was 12.7 million tons of paper and board, 1.5 billion square meters of corrugated packaging and 6.9 million cubic meters of sawn wood products, including 3.2 million cubic meters of products. The customers for the Company include publishers, printing houses and paper merchants, as well as the packaging, joinery and construction industries. In August 2007, the Company completed the acquisition of 28% shares in Stora Enso Poland SA. In 2008, the Company completed the disposal of Papyrus Merchant business area. * * * As reported in the Troubled Company Reporter-Europe on May 18, 2009, Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Finland-based forest product company Stora Enso Oyj to 'BB' from 'BB+'. The rating was removed from CreditWatch, where it was placed with with negative implications on April 24, 2009. The 'B' short-term corporate credit rating, and the Nordic scale 'K-4' rating were affirmed. The outlook is negative. ============= G E R M A N Y ============= BAVARIA YACHTBAU: Lenders In Talks Over Debt-For-Equity Swap Deal ----------------------------------------------------------------- Anousha Sakoui and Martin Arnold at The Financial Times report that lenders to Bavaria Yachtbau are in talks over a proposed debt-for-equity swap deal. The FT relates Oaktree Capital Management, the U.S. distressed debt investor that bought more than a third of Bavaria Yachtbau's debt at about 35 cents in the euro from Goldman Sachs, is talking to Dresdner Bank, co-financier with Goldman of the EUR1.3 billion deal in June 2007. Citing a person familiar with the proposed debt-for-equity swap, the FT discloses the deal would reduce Bavaria Yachtbau's EUR900 million (US$1.3 billion) debt by more than three-quarters and hand control of the company to lenders. The FT recalls Bavaria Yachtbau was bought by private equity group Bain Capital for EUR1.3 billion at the peak of the debt bubble. It is struggling to make interest payments after a sharp drop in sales, the FT recounts. "Bain would be willing to keep a stake in the company under the right circumstances," the FT quoted a person familiar with the situation as saying. "For this, Bain would have to commit more money." Bain, the FT notes, has written its equity investment in the yachtmaker down to zero. Bavaria Yachtbau GmbH -- http://www.bavaria-yachtbau.com/-- is a yacht builder headquartered in Giebelstadt, Bavaria, Germany. GENERAL MOTORS: May Select Opel Buyer "Early Next Week" ------------------------------------------------------- Chris Reiter and Serena Saitto at Bloomberg News report that Nick Reilly, the incoming head of General Motors Corp's international operations, said the carmaker is likely to select a buyer for Opel "early next week". Bloomberg relates Mr. Reilly, currently GM's Asia-Pacific head, said in a Bloomberg TV interview from Shanghai today that Magna International Inc. and RHJ International SA are "probably the frontrunners" for the European unit. Citing three people familiar with the situation, who asked not to be named because the bids are confidential, Bloomberg discloses GM, which signed a non-exclusive memorandum of understanding with Magna in May, has asked for final proposals from the Aurora, Ontario-based car-parts maker and RHJ. According to Bloomberg, German Deputy Economy Minister Jochen Homann said while Brussels-based investor RHJ would cut fewer than 10,000 positions at GM's European factories, compared with 11,000 jobs proposed by Magna, that doesn't make RHJ's bid more attractive. Magna, as cited by Bloomberg, said in a telephone interview that Magna "still has an edge" because it has been in talks with GM longer. Bloomberg notes one person said Beijing Automotive Industry Holding Co. may submit a final offer, while it's uncertain whether Fiat SpA will renew its bid. Warning Marcus Walker at The Wall Street Journal reports that the German government on Wednesday warned GM that, if it sells its European car business to anyone other than Magna, then Germany might withdraw its offer to provide state aid. According to the WSJ, German politicians, facing national elections Sept. 27, pledged to support Magna's plan with EUR4.5 billion (US$6.3 billion) in loan guarantees. The WSJ notes German officials point out GM can't complete a deal without Germany's aid and approval. The WSJ relates German states that host Opel factories, and which are contributing to EUR1.5 billion of interim loans to keep Opel alive, also said Wednesday that an alternative buyer would have to renegotiate state aid. "Consequently, if GM were to reach a deal with another bidder, which is purely hypothetical, it would have to say what it expects from the government, and that would have to be negotiated," the WSJ quoted a spokesman for Chancellor Merkel, Thomas Steg, as saying. About General Motors 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. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors' restructuring officer. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) PORSCHE AUTOMOBIL: May Reach Sale Deal in Few Days, CEO Says ------------------------------------------------------------ Andreas Cremer and Ryan Chilcote at Bloomberg News report that Porsche Automobil Holding SE Chief Executive Officer Wendelin Wiedeking said the sports-car maker is likely to reach an agreement to sell certain stakes in a few days. Bloomberg relates Mr. Weideking told Bloomberg Television on Thursday night "I think all the details, later on within the next days" will be resolved. "It's already on the table," Bloomberg quoted Mr. Wiedeking as saying in the interview. According to Bloomberg, Lower Saxony state Prime Minister Christian Wulff told reporters at the 100th anniversary celebration for Volkswagen AG's Audi division that, Porsche's power struggle with Volkswagen appears to be "over". Mr. Wulff, as cited by Bloomberg, said said he's "very confident of good results" from meetings that Porsche's and Volkswagen's supervisory boards plan on July 23. QIA Offer Christoph Rauwald at Dow Jones Newswires reports a person close to the Porsche supervisory board said Friday that the board was set to discuss an offer worked out between Porsche's executive board and Qatar Investment Authority. The WSJ discloses under the proposed deal, the Qatari state-owned investment firm would take a stake in the German sports-car maker, as well as acquire options on VW stock from Porsche. The WSJ relates the person said the deal could be valued at more than EUR5 billion (US$6.97 billion). The person added that the supervisory board also will discuss a separate offer from VW to take a 49% stake in Porsche's core sports-car operations, Dow Jones notes. Dow Jones says a decision on the planned integration of Volkswagen with Porsche could be made as early as next week. In a July 15 report Bloomberg disclosed speaking at rallies at plants in Weissach and Zuffenhausen, Uwe Hueck, Porsche's top labor leader, called on the Porsche and Piech families to adhere to pledges not to sell the carmaker. According to Bloomberg, Mr. Hueck said the possible sale of Porsche's automaking operations to Volkswagen would harm both companies by draining cash. Citing an e-mailed statement, Bloomberg said Mr. Hueck wants the families, who control the voting shares, to clear the way for an investment by Qatar and participate in a capital increase to bolster the debt- strapped company's finances. Volkswagen Offer Andreas Cramer at Bloomberg reports Mr. Hueck also wants Volkswagen to double its offer for a stake in Porsche's automotive unit. Bloomberg relates the labor leader said in an interview with Germany's ZDF television on Wednesday that, the "exact correct price" is EUR7 billion (US$9.9 billion) to EUR8 billion. "The EUR4 billion will not even suffice. We also need liquidity," Bloomberg quoted Mr. Hueck as saying in the interview. Debt Daniel Schafer at The Financial Times reports several analysts said that Porsche's large debt load has increased from more than EUR9 billion at the end of January to above EUR10 billion at the end of April. The surge, the FT says, is mainly due to large tax payments on the multi-billion paper profits the carmaker made in its past fiscal year from its trades with Volkswagen options. According to the FT, the situation is set to worsen further when Porsche's fiscal year ends later this month, as the carmaker is set to record another large paper profit from its heavy bets with VW options that will trigger additional large tax payments. Citing research by Nomura, the investment bank, the FT discloses Porsche will also soon have to repay a EUR640 million hybrid bond after it breached the covenant. The FT adds a EUR700 million loan by Volkswagen is also set to mature at the end of September. Headquartered in Stuttgart, Germany Porsche Automobil Holding SE -- http://www.porsche-se.com/-- is a holding company engaged in the car manufacture industry. The Company's core products are sports cars and all-terrain vehicles. The Porsche sports car range includes the Boxster, the Cayman, the 911 and the Carrera GT. The Boxster and the Boxster S are contemporary reinterpretations of the Company's original roadsters, the 356/1 and the 550 Spyder. There are several varieties of the 911, representing the model's continuous evolution. The Carrera GT has the race-derived chassis construction and minimum weight. The Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo and Cayenne Turbo S are balanced, four-wheel drive vehicles for on-road and off-road use. Porsche Automobil Holding SE also offers financing services, spare parts and accessories for new and classic models, as well as an approved used car service. ============= I R E L A N D ============= EGRET FUNDING: S&P Confirms Low-B Ratings on Class D & E Notes -------------------------------------------------------------- Standard & Poor's Ratings Services has confirmed its ratings on the outstanding notes issued by Egret Funding CLO I PLC following the purchase and subsequent cancellation of EUR1.4 million of the class E notes. On July 13, 2009, the issuer purchased in a privately negotiated transaction a notional of EUR1.40 million (out of an aggregate principal balance of EUR12.25 million) of the class E notes, which were subsequently cancelled. It purchased the notes at a discount to par plus accrued interest. The acquisition was funded by interest proceeds that would otherwise have been available for the benefit of the portfolio manager via an incentive fee, and to the unrated subordinated notes on the June 22 interest payment date. Under the transaction documents, the purchase of any portion of the class E notes does not require the consent of any of the outstanding noteholders. S&P reviewed the transaction considering the cash flows as described, and concluded that none of the ratings on the outstanding notes would be affected by the purchase and cancellation. Ratings List Egret Funding CLO I PLC EUR421.9 Million Floating-Rate Notes Class Rating ----- ------ A AA+ B A+ C BBB D BB- E B- FLEET STREET: S&P Lowers Rating on Class D Notes to 'BB' -------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on the class A to D notes issued by Fleet Street Finance Two PLC. A EUR1.2 billion loan made by Fleet Street Finance Two to the borrower backs this transaction. The loan is secured by a KarstadtQuelle sale-and lease-back portfolio that comprises mostly department stores in central, established retail locations across Germany. There are 100 properties left in the pool, including five landmark department stores. S&P understands that the sole tenant, KarstadtQuelle group, has recently filed for insolvency which S&P believes is likely to have negative implications for both the portfolio value and the net operating income. S&P, however, assumed tenant insolvency in S&P's initial rating analysis. S&P believes the general weak economic conditions in the German retail market could put downward pressure on the EUR1.5 billion vacant possession value reported at closing. The ultimate recovery value will largely depend on demand from KarstadtQuelle's competitors for the high-quality assets specifically, the special servicer's overall asset management, and the disposal strategy for the portfolio. Depending on the interaction of these three factors, S&P believes there are scenarios that would not result in a principal loss for the rated notes, i.e., ultimate recoveries would be sufficient to cover the outstanding loan amount. Based on S&P's current expectations, S&P does not consider a principal loss -- which would have caused us to further lower the rating on the class D notes -- as the most likely scenario. S&P understands that the EUR80 million liquidity facility will be available to cover loan-level interest shortfalls, which could occur if there is insufficient rental income. There are scenarios in which the class D notes could experience interest shortfalls following application of appraisal reduction or interest on liquidity facility drawings if no rental income is received. Based on information available, S&P is of the opinion that any interest shortfalls would likely be minor. The borrower also guarantees additional indebtedness that was provided to the borrowing group in the form of mezzanine debt. The relationship between Fleet Street Finance Two (as senior lender) and the subordinated lenders is governed by intercreditor agreements. S&P understands that there are a large number of subordinated lenders who, in S&P's opinion, could add to the complexity of any workout of the senior loan. All these factors have resulted in the rating actions as S&P believes that the risks for this transaction are no longer commensurate with the ratings on the class A to D notes. As a result, S&P has lowered the ratings on these notes by three notches. Ratings List Fleet Street Finance Two PLC EUR1,192,021 Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Class To From ----- -- ---- A AA AAA/Watch Neg B A AA/Watch Neg C BBB A/Watch Neg D BB BBB/Watch Neg OMEGA CAPITAL: S&P Raises Rating on Class A2-7N Notes From 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services raised to 'A-' from 'B-' its credit rating on the NOK200 million class A2-7N notes series 28 Broadway issued by Omega Capital Investments PLC following an increase in the threshold for the notes. After receiving noteholder consent, BNP Paribas will stop paying the fixed interest on the notes from September 20, 2009, until the legal final maturity date on September 20, 2013. As a result, there will be an upward revision to the attachment point, which S&P believes is now sufficient to support an 'A-' rating. QUALCERAM SHIRES: Ideal Standard Buys Four Subsidiaries ------------------------------------------------------- RTE Business reports that Brussels-based Ideal Standard International has bought four subsidiaries of Qualceram Shires plc for an undisclosed sum. RTE relates Standard International said it had bought the four companies -- Shires Ireland, Quality Ceramics Arklow Ltd, Quay Bathrooms and Quality Ceramics Sales Ltd. On July 1, 2009, the Troubled Company Reporter-Europe, citing RTE, reported Qualceram, which employs 90 people, went into examinership in April after talks with its bankers and landlord fell through. It had been hit by the slowdown in the property markets in Ireland and the UK. RTE disclosed David Hughes of Ernst & Young, the examiner to Qualceram, said he would make an application to have the company liquidated after attempts to secure funding failed. Headquartered in Arklow, Ireland, Qualceram Shires plc -- http://www.qualceram-shires.com/-- is engaged in the manufacture, sale and distribution of bathroom products. The Company offers a range of traditional and contemporary bathroom products, including wash hand basins in glass and electronically controlled whirlpool baths. Its range of goods include vitreous china, acrylic baths, taps and brassware, heated towel rails, bathroom furniture and accessories. The Company's brands include Shires, Selecta, Shaws and Trent. Some of its subsidiaries include QCM Limited, which is a holding company; Quality Ceramics (Arklow) Limited, which is engaged in manufacturing; Qualceram Limited, which is a holding company; Quality Ceramic (Sales) Limited, which is engaged in sales and distribution, and Shires Limited, which is engaged in manufacturing, sales and distribution. ========= I T A L Y ========= BANCA ITALEASE: Banco Popolare Mulls EUR1 Bln Capital Increase -------------------------------------------------------------- Alessandra Migliaccio at Bloomberg News reports that Banco Popolare SC Chief Executive Officer Pier Francesco Saviotti told Radiocor news agency that the bank is planning a capital increase of about EUR1 billion (US$1.4 billion) for Banca Italease SpA, the unprofitable leasing company it's buying out. No details of the planned capital increase were disclosed. Banca Italease SpA (BIT:BIL) -- http://www.italease.it/-- is an Italy-based banking company. Banca Italease provides retail leasing services through: Italease Secondacasa, offering real estate leasing; Tiarredo, providing furniture leasing; Tiarredo Arte, specializing in art leasing; Tiguido, offering car and motorcycle leasing, and Tivaro, providing boat leasing. Banca Italease also offers corporate leasing through its subsidiaries: LeasinGomme, Real Estate Leasing, Industrial Leasing, Public Sector Leasing and Corporate Car Leasing. Other areas of Company�s operations are: subsidized leasing, medium and long-term lending, insurance products, factoring, long-term car leasing, and Interest Rate Swap (IRS) contracts. * * * Banca Italease continues to carry Moody Investors Service's Ba1/Not-Prime/D-ratings on its long- and short-term deposit ratings as well as bank financial strength, respectively. All ratings have a stable outlook. =================== K A Z A K H S T A N =================== ALTAI MASTER: Creditors Must File Claims by July 24 --------------------------------------------------- Creditors of LLP Altai Master K have until July 24, 2009, to submit proofs of claim to: Kazakhstan Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on April 20, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan KARAGASH MUNAI: Creditors Must File Claims by July 24 ----------------------------------------------------- Creditors of LLP Karagash Munai have until July 24, 2009, to submit proofs of claim to: Ormanov Str. 51/55-66 Taldykorgan Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 22, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan KOSTANAI CONSULTING: Creditors Must File Claims by July 24 ---------------------------------------------------------- Creditors of LLP Kostanai Consulting Group have until July 24, 2009, to submit proofs of claim to: Auelbekov Str. 126-75 Kokshetau Akmola Kazakhstan The Specialized Inter-Regional Economic Court of Akmola commenced bankruptcy proceedings against the company on April 7, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Akmola Gorky Str. 37 Kokshetau Akmola Kazakhstan METEX CJSC: Creditors Must File Claims by July 24 ------------------------------------------------- Creditors of CJSC Metex have until July 24, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan The court commenced bankruptcy proceedings against the company on May 8, 2009. NATIONAL COMPANY: Moody's Cuts Senior Unsecured Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service has downgraded to Ba1 from Baa3 the senior unsecured issuer rating of JSC National Company Food Contract Corporation. Concurrently, Moody's has withdrawn the issuer rating and has assigned a Ba1 Corporate Family rating and probability of default rating. The company's ratings remain under review for possible downgrade. "The rating action results from Moody's downward revision of the company's baseline credit assessment (one of the contributing factors to the corporate family rating alongside assumptions on support and dependence) to 16 (B3 equivalent) from 14 (B1 equivalent). The rating action was prompted by Moody's concerns surrounding the company's reduced flexibility within the covenants on its foreign currency debt, which Moody's understand has been exacerbated by the recent devaluation of the Kazakh Tenge " said Stefano del Zompo, lead analyst for FCC at Moody's. "Moody's expects the lending banks and the government to continue to remain supportive of the company to meet its financial commitments going forward, although it will continue to closely monitor the materialization and timeliness of this ongoing support". "The current rating also reflects Moody's belief that, given the high reliance of the company on external funding from the government to meet it financial obligations, the government will continue to sustain the company as it has done in the past, recognizing the strategic importance of the agriculture sector for Kazakhstan and the role played by FCC in its development" explained Mr. del Zompo. The rating remains under review for possible further downgrade. Moody's review will focus on: (1) the financial covenants testing in coming quarters and the flexibility of the international banks in this regard; (2) the degree and timeliness of the government's financial support in rebuilding sufficient headroom under the covenants over the next few quarters; and (3) the short- to medium-term prospects of the company and its capacity to withstand the current economic downturn in light of the planned investment program and available capital resources. The company's rating might be affirmed were the headroom within the covenants on FCC's debt to be reconstituted to 2008 levels in conjunction with continued evidence of support from lending banks and the government. Conversely, a change in the assumptions regarding government support to the company or a failure to obtain a waiver from lending banks might result in a further rating downgrade. The last rating action was on June 15, 2009, when Moody's put FCC's Baa3 ratings on review for downgrade given concerns regarding the company's standalone creditworthiness primarily prompted by the concerns highlighted above in conjunction with also reviewing Moody's support and dependence assumptions. Headquartered in Astana, Kazakhstan, JSC National Company Food Contract Corporation is fully owned by the state of Kazakhstan through the National Holding KazAgro. FCC's principal mandate is to maintain state grain reserves at the levels required to supply the Kazakh population and to ensure timely grain replenishment. At the end of December 2008, FCC employed 1,718 people and reported revenues at KZT35 billion up from KZT24 billion the previous year. UGLE SNUB: Creditors Must File Claims by July 24 ------------------------------------------------ Creditors of LLP Ugle Snub service have until July 24, 2009, to submit proofs of claim to: Myzy Str. 29-77 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on April 20, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== ALGA BI: Creditors Must File Claims by August 7 ----------------------------------------------- LLC Micro Credit Company Alga Bi is currently undergoing liquidation. Creditors have until August 7, 2009, to submit proofs of claim to: Jybek Jolu Ave. 374 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== NXP BV: S&P Raises Long-Term Corporate Credit Rating to 'CCC' ------------------------------------------------------------- Standard & Poor's Ratings Services said it has raised its long- term corporate credit rating on Dutch semiconductor manufacturer NXP B.V. to 'CCC' from 'SD' (selective default). The outlook is negative. At the same time, S&P raised the issue ratings on NXP and subsidiary NXP Funding LLC's secured notes to 'CCC' from 'D'. The recovery rating on these notes is unchanged at '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. S&P raised the ratings on NXP and NXP Funding's unsecured notes to 'CCC-' from 'D'. The recovery rating of '5' on these notes remains unchanged, indicating S&P's expectation of modest (10%- 30%) recovery in the event of a payment default. The issue ratings on NXP and NXP Funding's super-priority EUR500 million revolving credit facility due 2012 and super- priority notes due 2013 were raised to 'B-' from 'CCC'. The recovery ratings on these super-priority facility and notes are unchanged at '1', indicating S&P's expectation of very high (90%- 100%) recovery in the event of a payment default. "The ratings primarily reflect S&P's assessment of NXP's capital structure and financial risk profile as highly leveraged following NXP's recently completed distressed cash exchange for its senior unsecured and senior secured notes," said Standard & Poor's credit analyst Patrice Cochelin. "Also integrated into the ratings is S&P's view that NXP's liquidity is somewhat weaker than before completing the cash exchange." At March 31, 2009, NXP reported consolidated gross debt of US$6.4 billion, including US$0.6 billion drawn under its revolving credit facility. S&P estimates that the recent cash offer and a debt exchange offer completed in April 2009 reduced gross debt to about US$5.6 billion at current exchange rates, excluding any changes in the revolver draw. According to NXP, the cash offer will reduce NXP's debt by US$504 million, resulting in a cut in annual interest charges equivalent to US$32 million. Although NXP has not disclosed how much it will pay in total for its cash offer, S&P calculates the amount at slightly above US$200 million. In total, excluding currency impacts and including a US$600 million revolver draw, S&P estimates that NXP has reduced its gross debt burden by 15% through its two offers. NXP has not ruled out further debt exchanges or buybacks in the future. S&P therefore continues to assess NXP's financial risk profile as highly leveraged. Because of S&P's expectation of continued negative free operating cash flow generation for NXP in 2009 -- despite a somewhat lower interest burden -- refinancing risks for NXP's debt maturities from 2012 remain a rating constraint. Over the near term, these risks are partially offset by S&P's expectation of a moderate demand pick-up in second-quarter 2009 and S&P's assessment of NXP's liquidity as adequate, although weakening. NXP's most recent guidance calls for sequential revenue growth in the higher end of the company's previous 10%-25% range, excluding wafer sales and at constant currencies. "The negative outlook primarily reflects S&P's view that tough economic conditions and large cash outlays for restructuring and interest payments will likely continue to trigger cash burn at NXP in the foreseeable future," said Mr. Cochelin. "In addition, S&P believes that the moderate debt reduction NXP achieved through the recent debt exchanges has not addressed questions about the medium-term sustainability of NXP's capital structure." S&P therefore considers that NXP carries a relatively high risk of additional below-par capital structure transactions and, ultimately, faces high hurdles to refinance its revolver in 2012 and notes starting from 2013. A dramatic reduction in NXP's cash burn while maintaining adequate cash balances could support rating stability, however. =========== R U S S I A =========== ART-STROY LLC: Creditors Must File Claims by July 26 ---------------------------------------------------- Creditors of LLC Art-Stroy (TIN 7204036061, PSRN 1027200845825) have until July 26, 2009, to submit proofs of claims to: N. Vlasov Temporary Insolvency Manager Post User Box 39 620027 Yekaterinburg Russia The Arbitration Court of Tumenskaya will convene at 9:10 a.m. on September 22, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?70-4155/2009. The Debtor can be reached at: LLC Art-Stroy Building 1 Lunacharskogo Str. 18 625001 Tumen Russia DAGESTAN LLC: Creditors Must File Claims by July 26 --------------------------------------------------- Creditors of LLC Dagestan (TIN 0530008630) (Winery) have until July 26, 2009, to submit proofs of claims to: Sh.Dzhabrailov Temporary Insolvency Manager Umakhanova pereulok 12 Makhachkala 367008 Dagestan Russia The Arbitration Court of Dagestan will convene at 11:00 a.m. on Sept. 14, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?15�922/2009. The Debtor can be reached at: LLC Dagestan Sheboldaeva Str. 1 Derbent Daegstan Russia NAZRANSKIY LOW-POWERED: Creditors Must File Claims by July 26 ------------------------------------------------------------- The Arbitration Court of Ingushetia commenced bankruptcy supervision procedure on OJSC Nazranovskiy Low-Powered Motor Plant (TIN 0608006302). The case is docketed under Case No. ?18�250/09. Creditors have until July 26, 2009, to submit proofs of claims to: M. Aushev Temporary Insolvency Manager Chechenskaya Str. 5 Nazran 386100 Ingushetia Russia The Debtor can be reached at: OJSC Nazranovskiy Low-Powered Motor Plant Chechenskaya Str. 5 Nazran 386100 Ingushetia Russia REFORS LLC: Creditors Must File Claims by July 26 ------------------------------------------------- Creditors of LLC Refors (TIN 7417011872, PSRN 104740003257) (Reinforced Concrete Structure Manufacturing Plant) have until July 26, 2009, to submit proofs of claims to: N. Berdyugina Temporary Insolvency Manager Post User Box 8213 454084 Chelyabinsk Russia The Arbitration Court of Chelyabinskaya will convene at 3:00 p.m. on September 3, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?76-4959/09-60- 18. The Debtor can be reached at: LLC Refors Chicherina Str. 22-152 Chelyabinsk Russia RTM OAO: Files for Bankruptcy in Moscow Arbitration Court --------------------------------------------------------- Yulia Komleva at Reuters reports that RTM OAO has filed for bankruptcy in the Moscow Arbitration Court after struggling to restructure its debts. It is the first bankruptcy filing by a public Russian developer. In a June 11 report, Reuters disclosed RTM chief executive Sergei Khrapunov warned the company, which had defaulted on most of its debt, could file for bankruptcy soon. "We have more liabilities than assets now and that is a characteristic of bankruptcy . . . it is highly likely we won't be able to satisfy creditors' demands and will have to file for bankruptcy," Mr. Khrapunov told Reuters in an interview. Headquartered in Moscow, Russia, RTM OAO -- http://www.rtmd.ru-- is a real estate firm. STROY-ENERGO LLC: Creditors Must File Claims by July 26 ------------------------------------------------------- Creditors of LLC Stroy-Energo-XXI Century (TIN 7710658510, PSRN 1077746011122) (Construction) have until July 26, 2009, to submit proofs of claims to: M. Malysheva Temporary Insolvency Manager Post User Box 481 111141 Moscow Russia The Arbitration Court of Moscow will convene at 11:45 a.m. on Sept. 17, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?40�29803/09�124- 33B. The Debtor can be reached at: LLC Stroy-Energo-XXI Century Office 100 Building 9 Tverskaya Str. 12 125009 Moscow Russia * NOVOSIBIRSK: Fitch Changes Outlook to Neg., Keeps Low-B Ratings ----------------------------------------------------------------- Fitch Ratings has changed the Russian Novosibirsk region's Outlooks to Negative from Stable. Its ratings have been affirmed at Long-term foreign and local currency 'BB' respectively, and Short-term foreign currency 'B'. The agency has also affirmed its National Long-term rating at 'AA-(rus)'. The action affects RUB2.6bn of outstanding bonds. The change in Outlook reflects Fitch's expectation that the Novosibirsk region's operating margin will decrease to 6%-8% by end-2009, due to lower tax revenues amid the prevailing economic slowdown. The ratings reflect the region's sound but weakening budgetary performance, reduced direct debt risk and still sufficient liquidity. However, the ratings also take into account weaker operating revenue forecasts due to a slower regional economy and an expected increase in indirect risk stemming from guarantees. The region recorded a 13.8% operating margin in 2008, underpinned by the diversified local economy that generated strong tax revenue in H108. The region's tax concentration is low and payments from the top 10 taxpayers declined to 15.6% of the region's total tax revenue in 2008 from 22.1% in 2007. However, in Q109 the global financial crisis and domestic recession affected the region's economy, causing the administration to forecast a 5% drop in operating revenue for 2009 (28% y-o-y increase in 2008). The region's liquidity position remains strong and accumulated cash reserves of RUB4.5 billion by Q109 (end-2008: RUB3.9 billion) should help cover any short-term cash requirements and finance the expected end-of-year deficit. The region's direct debt, which is composed solely of domestic bonds maturing in 2009-2010, decreased to RUB2.6 billion in H109 from RUB5.3 billion in 2007. Although contingent liabilities will increase in 2009 with the expected issue of RUB1.5 billion guarantees for the region's construction companies, they should remain at a manageable level. The Novosibirsk region is located in the West Siberian plain of the Russian Federation. The region accounted for 1.4% of the Russian Federation's GDP and 1.9% of national population in 2007. * PENZA: Fitch Affirms 'BB' Long-Term Foreign Currency Rating ------------------------------------------------------------- Fitch Ratings has affirmed Russia's Penza Region's ratings at Long-term foreign and local currency 'BB' and Short-term foreign currency 'B'. Fitch has also affirmed the region's National Long- term rating at 'AA-(rus)'. The Outlooks for the Long-term ratings are Stable. The ratings reflect the region's low fiscal flexibility stemming from a small economy, the short-term profile of its outstanding debt and expected mild deterioration in its operating performance in 2009. However, the ratings also factor in the region's sound budgetary performance over 2004-2008, increasing federal budget support, a low debt burden and the high quality of management. The Stable Outlook reflects Fitch's expectation that prudent management and increasing support from the federal government will underpin satisfactory budgetary performance over the medium term, allowing the region to mitigate the negative impact of the domestic economic downturn. Per capita GRP was 43% of the Russian regional average in 2007. This has resulted in a relatively weak tax base for Penza and a high proportion of transfers from the federal budget in the region's revenue, which averaged 52% during 2005-2008. Dependence on federal transfers limits the region's revenue flexibility, although the stable nature of transfers helps underpin budget revenue in the weak economic environment. The region's prudent budget management has resulted in tightly controlled operating expenditure and sound budgetary performance over the last five years. The operating balance averaged 15% of operating revenue during 2005-2008 while capital expenditure accounted for 20% of total expenditure. The current downturn in the national economy is expected to weaken the operating balance in 2009. However, the operating balance as a share of operating revenue is likely to remain at 8%-10%, which is in line with current ratings. Penza's total debt/current balance payback ratio was moderate at about one year in 2008. Direct debt amounted to 11% of current revenue at end-2008. Issued debt and bank loans accounted for 41% and 40%, respectively, of the region's total direct debt. Despite the strong debt ratios, the region has a short debt maturity horizon, with full redemption in 2009 and 2010. The administration plans to refinance maturing bonds with new bank and federal government loans. The region's budgeted modest deficit before debt variation accounted for 1.4% of total revenue in 2009. However, it plans to cover the deficit mostly by using the cash balance accumulated from previous years, so that it would not lead to a significant increase of the region's debt. Penza is located in the central European part of the Russian Federation. It contributed 0.4% of the RF's gross domestic product in 2007 and accounted for 1% of its population. * TOMSK OBLAST: S&P Assigns 'B-/ruBBB' Senior Unsecured Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned its 'B-/ruBBB' senior unsecured debt ratings to a proposed Russian ruble (RUR) 2.2 billion increase to the existing RUR1.001 billion domestic bond, which Tomsk Oblast (B-/Negative/--; Russia national scale 'ruBBB') plans to place on July 16, 2009. Taking into account that 25% of the bond issue amortized in December 2008, the actual placement will be equal to RUR1.65 billion (about US$50 million). The bond is amortizing, with even annual redemptions of 25% each in 2009-2011, and carries a fixed coupon of 7% per year. "The oblast is issuing the bond to refinance and extend the maturity of existing debt," said Standard & Poor's credit analyst Felix Ejgel. "The ratings on the bond are equalized with the ratings on the oblast." The ratings on the Tomsk Oblast reflect S&P's view of its short- term debt structure, with debt service of more than 20% of revenues estimated for 2009, and S&P's expectations of continuing tough refinancing conditions for the oblast's debt maturing in 2009-2010. The ratings are also constrained by S&P's expectations of budgetary deficiencies caused by the weaker performance of the oblast's concentrated economy, which will reduce budget revenues; and its mandated expenditure responsibilities, such as inflexible wages and social assistance-related payments. The ratings are supported by the oblast's commitment to timely debt service and its expected policy shift toward more cautious refinancing of maturing debts, especially the recently announced policy to repay bank loans ahead of maturity dates. Moreover, the oblast could receive federal subsidies and budget loans exceeding the amounts currently budgeted. ========= S P A I N ========= IM SABADELL: S&P Assigns 'B+' Rating on EUR216 Mil. Class B Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR900 million asset-backed floating-rate notes issued by IM SABADELL EMPRESAS 5, Fondo de Titulizacion de Activos. At closing, the originator, Banco de Sabadell S.A., will sell to IM SABADELL EMPRESAS 5 a EUR900 million closed portfolio of secured and unsecured loans granted to Spanish small and midsize enterprises. To fund this purchase, the trustee, Intermoney Titulizacion S.G.F.T., S.A., will issue three classes of floating- rate, quarterly paying notes on IM SABADELL EMPRESAS 5's behalf. In terms of S&P's credit and cash flow analyses, the rationale for S&P's preliminary ratings is driven by the specific characteristics of this type of loan, the borrower characteristics, and borrower concentration. The ratings on each class of securities are preliminary as of and subject to change at any time. Ratings List IM SABADELL EMPRESAS 5, Fondo de Titulizacion de Activos EUR900 Million Asset-Backed Floating-Rate Notes Prelim. Prelim. Class rating amount (Mil. EUR) ----- ------- ----------------- A1 AAA 150 A2 AAA 534 B B+ 216 RURALPYME 2: Moody's Lowers Rating on Class D Notes to 'Ca' ----------------------------------------------------------- Moody's Investors Service has downgraded the long-term credit ratings of these notes issued by RURALPYME 2 FTPYME, FTA: -- Class A1 notes, Downgraded to Aa1 from Aaa; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; -- Class B notes, Downgraded to Baa2 from A2; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; -- Class C notes, Downgraded to B3 from Baa3; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; and -- Class D notes, Downgraded to C from Ca; previously, on March 18, 2009 Placed Under Review for Possible Downgrade. Moody's initially assigned definitive ratings in November 2006. The rating of the EUR53.7 million class A2(G) notes, Aaa, was not on review for possible downgrade as it benefits from the guarantee of the Government of Spain (Aaa) for interest and principal payments. However, Moody's has determined that the expected loss associated with class A2(G) notes without the Spanish Government guarantee -- which was consistent with a Aaa rating at closing of the transaction -- would be consistent with a Aa1 rating. The rating action has been prompted by a higher-than-expected level of delinquencies. As of June 2009, the cumulative 90+ delinquencies (i.e. delinquencies equal or greater than 90 days) were equal to 7.15% of the original portfolio balance, compared to 5.6% as of the previous quarterly reporting date. As part of the review, Moody's has considered the exposure of the transaction to the real estate sector (either through security in the form of a mortgage or debtors operating in the real estate sector). The deterioration of the Spanish economy has been reflected in the negative sector outlook Moody's published on the Spanish SMEs securitisation transactions. As a result of the above, Moody's has revised its assumption of the default probability of the SME debtors to an equivalent rating in the single B-range for the debtors operating in the real estate sector and in the low Ba-range for the non-real-estate debtors. At the same time, Moody's estimated the remaining weighted average life of the portfolio to equal four years. As a consequence, these revised assumptions have translated into an increase of the cumulative mean default assumption for this transaction to 13.5% as a percentage of the current portfolio balance (corresponding to 11.40% of original portfolio balance). Moody's original mean default assumption was 5% (as a percentage of original balance), with a coefficient of variation of 52.9%. Because of the relatively low effective number of loans in the portfolio (503), Moody's used a Monte-Carlo simulation to determine the probability function of the defaults, with a coefficient of variation is 50.4%. The recovery rate assumption is now 50%, while values in the 40% to 55% range were tested at closing. The revised CPR assumption is now 5%, comparable to values observed throughout the last reporting periods, while the original CPR assumption was 10%. The increased credit enhancement available in the structure due to the amortisation of the portfolio (as of May 2009, the pool factor was equal to 56%) was not sufficient to offset the impact of worse than expected performance and revised performance assumptions on the Class A1, B, C and D Notes rating (Class A current credit enhancement: 22.34%). RURALPYME 2 FTPYME, FTA is a securitization fund which purchased a pool of loans granted by 14 Spanish rural savings banks to Spanish SMEs. At closing, the portfolio consisted of 2,449 loans. The loans were originated between 1992 and 2006, with a weighted average seasoning of 2.61 years and a weighted average remaining term of 10.03 years. Geographically the pool was exposed to Andalucia (30%) and Aragon (30%). Because of the nature of the originators, the pool was primarily exposed to the farming and agriculture sector (26.6%) and to the beverage, food and tobacco sector (13%). Also, the concentration in the "building and real estate" sector according to Moody's industry classification was approximately 22% as of closing. As of May 2009, the number of debtors in the portfolio was equal to 1,826 and the weighted average remaining term was equal to 8.9 years. The concentration levels per industry and regions are very similar to their levels at closing. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. RURALPYME 3: Moody's Junks Rating on EUR26.4 Mil. Class D Notes --------------------------------------------------------------- Moody's Investors Service has downgraded the long-term credit ratings of these notes issued by RURALPYME 3, FTA: -- EUR720.8 million class A notes, Downgraded to Aa2 from Aaa; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; -- EUR44.8 million class B notes, Downgraded to Ba1 from A1; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; -- EUR8 million class C notes, Downgraded to B3 from Baa2; previously, on March 18, 2009 Placed Under Review for Possible Downgrade; and -- EUR26.4 million class D notes, Downgraded to Caa2 from Ba3; previously, on March 18, 2009 Placed Under Review for Possible Downgrade. Moody's initially assigned definitive ratings in December 2007. The rating action has been prompted by a higher-than-expected level of delinquencies. As of May 2009, the cumulative 90+ delinquencies (i.e. delinquencies equal or greater than 90 days) were equal to 4.5% of the original portfolio balance, compared to 3.5% as of the previous quarterly reporting date. As part of the review, Moody's has considered the exposure of the transaction to the real estate sector (either through security in the form of a mortgage or debtors operating in the real estate sector). The deterioration of the Spanish economy has been reflected in the negative sector outlook Moody's published on the Spanish SMEs securitization transactions. As a result of the above, Moody's has revised its assumption of the default probability of the SME debtors to an equivalent rating in the single B-range for the debtors operating in the real estate sector and in the low Ba-range for the non-real-estate debtors. At the same time, Moody's estimated the remaining weighted average life of the portfolio to equal five years. As a consequence, these revised assumptions have translated into an increase of the cumulative mean default assumption for this transaction to 14.5% as a percentage of the current portfolio balance (corresponding to 13.9% of original portfolio balance), with a coefficient of variation of 40%. Moody's original mean default assumption was 6.6% (as a percentage of original balance), with a coefficient of variation of 42.5%. Because of the relatively high effective number of loans in the portfolio (1,629), Moody's used an inverse normal distribution to determine the probability function of the defaults. The recovery rate assumption is now 50% while values in the 45% to 55% range were tested at closing. Limited information was available at this stage on recoveries. The revised CPR assumption is now 5%, comparable to values observed throughout the last reporting periods, while values in the 5%-10% range were tested at closing. The increased credit enhancement available in the structure due to the amortization of the portfolio (as of May 2009, the pool factor was equal to 73%) was not sufficient to offset the impact of worse than expected performance and revised performance assumptions on the Class A, B, C and D Notes rating (Class A current credit enhancement: 18.14%). RURALPYME 3, FTA is a securitization fund which purchased a pool of loans granted by 14 Spanish rural savings banks to Spanish SMEs. At closing, the portfolio consisted of 5,660 loans. The loans were originated between 1994 and 2007, with a weighted average seasoning of 2.3 years and a weighted average remaining term of 10.3 years. Geographically the pool was exposed to Andalucia (29%), Aragon (24%) and Navarra (15%). Because of the nature of the originators, the pool was primarily exposed to the farming and agriculture sector (22%) and to the beverage, food and tobacco sector (12%). Also, the concentration in the "building and real estate" sector according to Moody's industry classification was approximately 21% as of closing. As of May 2009, the number of loans in the portfolio was equal to 5,044 and the weighted average remaining term was equal to 9.7 years. The concentration levels per industry and regions are very similar to their levels at closing. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. * S&P Puts Ratings on 9 Spanish ABS/RMBS Deals on Watch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services placed or kept on CreditWatch negative all the ratings on the notes issued by nine Spanish transactions from either the asset-backed securities, small and midsize enterprises, or residential mortgage-backed securities sectors. These CreditWatch placements (and for those notes remaining on CreditWatch negative) follow S&P's preliminary review of the swap contracts underlying these transactions. In general, these are total return swaps where the issuer pays to the swap counterparty all interest received from any collections from underlying obligors during the quarter (potentially including any collections from loans in arrears). In return, the issuer receives an amount equal to the weighted-average coupon on the notes, plus a defined margin, calculated on a notional equal to the performing balance of the assets. Where these contracts differ from standard total return swaps is that the definition of performing balance does not include short- term arrears. Consequently, if the transaction exhibits a high level of short-term arrears or re-performing loans, this may result in a material reduction of the notional of the swap and, hence, a mismatch in payments paid from and received by the issuer. The rating actions reflect S&P's opinion that, given the current level of technical arrears reported in these transactions, the embedded risk of this swap mechanism is material. S&P will conclude S&P's review through an analysis that will model this potential mismatch by haircutting the notional of the swap. The haircut will be commensurate with the level of short-term arrears in each transaction, compared with other transactions originated by the same originator and the collateral type. S&P believes that this may result in multi-notch downgrades within each transaction, depending on the level of short-term arrears assumed. S&P will monitor any steps taken to address this risk. S&P intend to resolve the CreditWatch placements in due course. Ratings List Ratings Placed On Creditwatch Negative Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2 AAA/Watch Neg AAA B A/Watch Neg A Empresas Banesto 2, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA B A/Watch Neg A C BBB/Watch Neg BBB Empresas Banesto 3, Fondo de Titulizacion de Activos EUR2.3 Billion Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA B A/Watch Neg A C BBB/Watch Neg BBB Financiacion Banesto 1, Fondo de Titulizacion de Activos EUR800 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA B AA/Watch Neg AA C A/Watch Neg A TDA, Empresas Pastor 5, Fondo de Titulizacion de Activos EUR550 Million Asset-Backed Floating-Rate And EUR18.7 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AA/Watch Neg AA B BBB/Watch Neg BBB C B/Watch Neg B GC FTPYME PASTOR 4 Fondo de Titulizacion de Activos EUR630 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2 AAA/Watch Neg AAA A3(G) AAA/Watch Neg AAA B AA-/Watch Neg AA- C BBB/Watch Neg BBB D BB/Watch Neg BB E B/Watch Neg B GC Pastor Hipotecario 5, Fondo de Titulizacion de Activos EUR710.5 Million Floating-Rate Mortgage-Backed Notes Rating ------ Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA B A/Watch Neg A C BBB-/Watch Neg BBB- Ratings Remaining On Creditwatch Negative TDA Pastor Consumo 1, FTA EUR300 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AA/Watch Neg AA/Watch Neg B A/Watch Neg A/Watch Neg C B/Watch Neg B/Watch Neg Empresas Banesto 1, Fondo de Titulizacion de Activos EUR2 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BBB-/Watch Neg BBB-/Watch Neg D BB-/Watch Neg BB-/Watch Neg Fondo de Titulizacion de Activos PYMES Banesto 2 EUR1 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AAA/Watch Neg AAA/Watch Neg A2 AAA/Watch Neg AAA/Watch Neg B A/Watch Neg A/Watch Neg C BB/Watch Neg BB/Watch Neg Ratings Unaffected TDA, Empresas Pastor 5, Fondo de Titulizacion de Activos EUR550 Million Asset-Backed Floating-Rate And EUR18.7 Million Floating-Rate Notes Class Rating ----- ------ D CCC- GC Pastor Hipotecario 5, Fondo de Titulizacion de Activos EUR710.5 Million Floating-Rate Mortgage-Backed Notes Class Rating ----- ------ D CCC- ===================== S W I T Z E R L A N D ===================== CREVALOR GMBH: Creditors Must File Claims by July 31 ---------------------------------------------------- Creditors of Crevalor GmbH are requested to file their proofs of claim by July 31, 2009, to: Beer + Krueger Rechtsanwalte Thunstrasse 24 Mail Box 120 3000 Bern 6 Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 19, 2009. IT-PROGRESS GMBH: Claims Filing Deadline is July 27 --------------------------------------------------- Creditors of IT-Progress GmbH are requested to file their proofs of claim by July 27, 2009, to: IT-Progress GmbH Friedbergstrasse 24 8512 Thundorf Switzerland The company is currently undergoing liquidation in Thundorf. The decision about liquidation was accepted at a shareholders' meeting held on May 22, 2009. KOSMETIK ZURICH: Claims Filing Deadline is July 31 -------------------------------------------------- Creditors of Kosmetik Zurich GmbH are requested to file their proofs of claim by July 31, 2009, to: Caroline J. Gerber Winzerstrasse 93 8049 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at a shareholders' meeting held on April 16, 2009. LOKALRADIO THURGAU AG: Claims Filing Deadline is July 31 -------------------------------------------------------- Creditors of Lokalradio Thurgau AG are requested to file their proofs of claim by July 31, 2009, to: RADIO TOP AG Gertrudstr. 1 Mail Box 2299 8401 Winterthur Switzerland The company is currently undergoing liquidation in Frauenfeld. The decision about liquidation was accepted at an extraordinary general meeting held on May 26, 2009. =========================== U N I T E D K I N G D O M =========================== BAA: MAG Withdraws From Gatwick Bidding Race -------------------------------------------- Dan Milmo at guardian.co.uk reports that a consortium lead by Manchester Airports Group has pulled out of the bidding race for BAA's Gatwick airport. According to the report, MAG has refused to meet BAA's final price of GBP1.5 billion �- GBP100 million more than the owner of Manchester airport was willing to offer. The report relates one source close to the discussions said MAG's exit could be a negotiating tactic to force BAA into accepting a bid of around GBP1.4 billion. The report says the departure of MAG leaves BAA, which has a debt pile of around GBP12 billion, dependent on one suitor. The US-based investment fund Global Infrastructure Partners remains interested in Gatwick, but it is not known whether it is in formal talks with BAA, the report notes. Debt Repayment Plans BAA, the report discloses, seeks to pare down debts of around GB9.5 billion that are secured against its London airports, including Heathrow. The first payment of a GBP4.4 billion refinancing facility within the debt structure is due in March next year and BAA has earmarked the proceeds from the Gatwick sale for that purpose, the report says. The report states failure to sell Gatwick by March next year will leave BAA with the option of raising new debt in order to meet the payment schedule. The report notes the option of raising new debt however is shrouded in doubt because the government has proposed a "special administration" regime which, in the event of BAA going bust, would give ministers powers over the group's airports. "Special Administration" Regime On June 12, 2009, the Troubled Company Reporter-Europe, citing Telegraph.co.uk, reported that BAA's bondholders proposed two alternatives to the UK government's controversial plans to force a "special administration regime". The bondholders' first alternative was to impose a license obligation that compels the debt holders to continue to operate the airports. The second was for special administration to trigger a "pre-agreed exchange offer" whereby existing debts are replaced by government- guaranteed loans in the new BAA. According to Telegraph.co.uk, the holders of GBP4.85 billion of bonds would demand a "consent fee" that would apply to the owners of all the GBP9.6 billion of senior debt secured against Heathrow, Gatwick and Stansted airports. The bondholders warned that introducing a special administration regime could lead to the insolvency of BAA. BAA -- http://www.baa.co.uk-- owns and manages seven airports in the UK, including London's Heathrow, Gatwick, and Stansted. The company oversees functions such as cargo handling, fire protection, property management, retail operations (including its own World Duty Free stores), and security. In addition, it runs the Heathrow Express rail service to London and works with other mass transit operators. Outside the UK, BAA has a 65% stake in the Naples International Airport in Italy and manages the retail operations at three US airports in Pittsburgh, Baltimore, and Boston. A group led by Spanish infrastructure manager Ferrovial acquired BAA in 2006 for more than GBP10 billion in stock. BARNSLEY HOUSE: KPMG Sells Barnsey House Hotel & The Village Pub ---------------------------------------------------------------- Jane Moriarty and Richard Hill of KPMG, the joint administrators of Barnsley House Limited, have sold Barnsley House Hotel and The Village Pub. The company has continued to trade under the joint adminstrators' control while they sought a buyer for the business and assets. Barnsley House and The Village Pub were sold to Calcot Health and Leisure Limited on Monday July 13, 2009. The joint administrators continue to trade The Catherine Wheel while the sale to a separate buyer goes through. Jane Moriarty, joint administrator and partner at KPMG said: "We are delighted to announce that Barnsley House and The Village Pub have been sold to local hotel owner, Calcot Health and Leisure Limited. We continue to trade The Catherine Wheel while the sale to a separate buyer goes through. During our trading period we have not made any redundancies and have honoured all deposits and wedding bookings. I'd like to take this opportunity to thank the customers and suppliers for their ongoing support in this difficult time which has helped to ensure that this historic hotel and gardens continue for many years to come and has contributed to the retention of 70 jobs." Richard Ball, Managing Director, Calcot Health and Leisure Limited said: "We have huge respect for all that Tim Haigh and Rupert Pendered have achieved at Barnsley House, harnessing the glories of this historically-significant property and Rosemary Verey's celebrated gardens to create a luxury country house hotel of national and international standing. We look forward to working alongside the management team to honour Tim and Rupert's solid legacy and develop it towards future successes." Barnsley House Hotel, a Grade 2* listed house built in 1697, is located in Barnsley, four miles north-east of Cirencester in the Cotswolds. It is a luxury hotel with 18 letting bedrooms, restaurant, bar, spa, conference facilities and a cinema. The Village Pub, opposite the hotel, is a popular gastro pub with seven bedrooms while The Catherine Wheel in the nearby village of Bibury has four bedrooms. For queries regarding reservations or bookings please contact Barnsley House Limited (in administration) on 01285 74000 or via e mail on info@barnsleyhouse.com Jane Moriarty and Richard Hill of KPMG were appointed joint administrators of Barnsley House Limited, which incorporates Barnsley House Hotel, The Village Pub and The Catherine Wheel pub on May 5, 2009. CABLE & WIRELESS: Won't Provide Concessions on Executive Pay Plan ----------------------------------------------------------------- Andrew Parker at The Financial Times reports that Cable & Wireless plc is not expected to provide concessions to investors on a shake-up of its executive pay policy that could increase rewards for its management. C&W, which is set to hold its annual meeting today, July 17, is proposing to extend the pay-out period for the company's long-term incentive plan. The move, the FT, says could increase the cash going to its managers, led by John Pluthero, head of the company�s UK business. According to the FT, the Association of British Insurers, whose members account for almost 20 per cent of investments in the UK stock market, objects to the proposed extension of the long-term incentive plan to 2011. The ABI, which issued a "red top warning", objects to the fact that the share awards have not been based on actual salaries this year, the FT statse. Peter Montagnon, ABI's director of investment affairs, as cited by the FT, said "The problem for shareholders with this is that, even if you believe there was a justification for it, to admit the princi- ple that you can move the goalposts on performance because of 'market turmoil' is a very difficult step to take." The FT relates C&W however said the comments by ABI officials were "inaccurate" and reflected "the ABI's lack of engagement during our consultation process, which is in sharp contrast to our major shareholders and other voting institutions". Pirc James Thompson at The Independent reports Pirc, the corporate advisory body, expressed concerns over C&W's executive pay plan. According to the Independent, Pirc said the scheme was more akin to the private equity industry and recommended that shareholders vote against it. "The scheme, which we have opposed in the past, is a cash-based incentive of a type usually found in a private equity speciality finance company and is based on value realisation," the Independent quoted Pirc as saying. Headquartered in London, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * Cable & Wireless plc continues to carry a 'Ba3' long-term corporate family rating from Moody's Investors Service with stable outlook. CARLISLE CASTLE: Moody's Assigns 'Ba2' Rating on Class D Notes -------------------------------------------------------------- Moody's Investors Service has assigned these definitive ratings to GBP 119.2 million of Series 2009-C variable funding asset-backed loan notes issued by Carlisle Castle Funding Group Limited: -- A2 to the GBP 44.7 million Series 2009-C Class B variable funding asset-backed note due August 2012 -- Baa2 to the GBP 31.9 million Series 2009-C Class C variable funding asset-backed note due August 2012 -- Ba2 to the GBP 42.6 million Series 2009-C Class D variable funding asset-backed note due August 2012 Series 2009-C is the 13th issuance under the Carlisle Castle Funding Group programme, which is ultimately backed by credit card receivables from the Castle Receivables Trust Limited. It is the 22nd series to be issued out of Capital One Bank (Europe) Plc's UK credit card master trust. The assets backing the notes are receivables arising under designated MasterCard and Visa revolving credit card accounts originated or acquired in the UK by COBEP. Moody's says that the ratings of the notes are based upon (i) the credit quality of the portfolio; (ii) the excess spread available to the transaction; (iii) the expertise of COBEP as one of the leading originators and servicers of credit card receivables in the UK; and (iv) the structural and legal integrity of the transaction. The rating of the Class B notes is based upon the above factors and the subordination of the Class C and Class D notes while the rating of the Class C notes is based on the subordination of the Class D notes. The rating of the Class D notes is based on the above factors, a 4.25% upfront funded Class D spread account and a further trapping of excess spread. The capital structure contains a Class E note that has been structured such that Moody's has not accounted for it as available credit enhancement to Class B, C and D notes in its quantitative analysis. Furthermore, it is expected that Series 2009-C will breach the three-month rolling average excess spread trigger at the same time as other existing series. The rating agency notes that the transaction uses the existing receivables trust structure which was set up in September 2001. COBEP has assigned all receivables that had arisen or would arise in the accounts originated under certain designated product lines to the receivables trustee. Up to August 2010, asset principal collections received by the Receivables Trustee will be used to fund the transfer of further receivables which arise under the designated accounts. After this date, the transaction will enter its regulated amortization period and principal collections will be used to redeem the Notes. The scheduled redemption date for the notes is February 2012, 18 months after the end of revolving period. However, the notes can be redeemed earlier unless all other outstanding series enter into regulated amortization simultaneously. If the notes are not fully repaid on the scheduled redemption date, a rapid amortization trigger will be breached. The notes have a final maturity date on August 2012. COBEP currently services the receivables in the receivables trust. Moody's has reviewed the servicing operations of COBEP and is comfortable that COBEP is well placed to fulfill its obligations in relation to servicing of the receivables. The minimum transferor interest floor is set at 5% to insure against dilution, fraud or attrition. Moody's has been monitoring the performances of Castle since its inception. For an overview of the performance of Castle and the other UK credit card trusts, see Moody's quarterly report UK Credit Card Indices. Moody's expects charge-offs to continue to increase over the coming months and expects the long-term mean to be in the range of 9% and 12%. The majority of accounts in Castle trust have variable rate APRs linked to the Bank of England base rate. As a result, recent base rate cuts will manifest themselves in lower yields and Moody's expects yield to range between 19%-21% over the course of 2009. Key risks to noteholders stem from a potential deterioration in portfolio performance going forward in the context of the UK recession. Rises in unemployment, decreases in wage growth and increases in costs of living will exert pressure on already highly leveraged UK borrowers, all of which feed through to Moody's negative outlook on the UK credit card ABS sector. Moody's has analysed and will monitor this transaction using the rating methodology for credit card receivables-backed transactions as described in the Rating Methodology report "Moody's Approach to Rating Credit Card Receivables-Backed Securities", April 2007. The ratings assigned are initial ratings for the transaction (no previous rating action). Moody's is assessing the possible credit impact of certain trust provisions related to the occurrence of an originator 'insolvency event' in Castle receivables trust. The ratings assigned to the Notes are lower or equal to the rating of the ultimate parent of COBEP, Capital One Bank (US) (A2/P-1) and, as such, in Moody's opinion the impact of any originator 'insolvency event' is consistent with the ratings assigned to these Notes. The definitive ratings address the expected loss posed to investors by the final maturity date of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. The rating is published. Moody's will publicly disseminate any change in the ratings through normal print and electronic media, and in response to requests to the Moody's rating desk, in accordance with Moody's standard practice at the time. CATTLES PLC: Gets Six-Month Reprieve on GBP500-Mil. Debt -------------------------------------------------------- Philip Aldrick at Telegraph.co.uk reports that Cattles plc has been given six months' breathing space on a GBP500 million debt it failed to pay. Telegraph.co.uk relates its syndicate of lenders, led by Royal Bank of Scotland, chose not to force the business into administration despite the covenant breach after Tuesday's deadline passed. The facility, Telegraph.co.uk discloses, has been extended to December 31, giving banks and bondholders more time to agree the terms of a debt-for-equity swap. According to Telegraph.co.uk, Cattles, which has GBP2.4 billion of outstanding debt, is seeking "a formal standstill agreement" with banks and bondholders to cease all interest and capital payments until it restructures. On July, 8, 2009, the Troubled Company Reporter-Europe, citing the Financial Times, reported discussions over a standstill agreement have been hampered by disagreements among debtholders over who would rank highest in payment priority if Cattles went into administration. The FT said if no resolution is forthcoming in the next few weeks, then Cattles is expected to fall into administration and the debt-holder dispute is likely to go to court. Cattles plc -- http://www.cattles.co.uk/-- is a financial services company specializing in providing consumer credit to non- standard customers in United Kingdom. The Company also provides debt recovery services to external clients and its consumer credit business, and working capital finance for small- and medium-sized businesses. It also has a car retail operation, which is an introducer of hire purchase customers to its consumer credit business. Its business divisions include Welcome Financial Services, The Lewis Group and Cattles Invoice Finance. Welcome Financial Services consists of three businesses: Welcome Finance, Shopacheck and Welcome Car Finance. Shopacheck provides short- term home collected loans to some 260,000 customers through 52 branches. The Lewis Group provides debt recovery and investigation services, serving both external clients and Welcome Financial Services. In September 2007, it announced the acquisition of a debt portfolio of United Kingdom credit card, loan and overdraft receivables. INEOS GROUP: Creditors Agree to Reset Terms on US$10.3-Bil. Debt ---------------------------------------------------------------- Anousha Sakoui at The Financial Times reports that creditors of Ineos Group Holdings plc agreed to reset the terms of the company's EUR7.3 billion (US$10.3 billion) debt load. The FT recalls in April, Ineos, advised by Lazard, presented creditors with a new business plan and sought to have the terms of its loans reset for their duration, which are set to be repaid in 2012. Citing people familiar with the situation, the FT discloses on Wednesday more than two-thirds of creditors voting on the new debt terms approved the requests, which included resetting leverage, interest cover and debt service cover covenants from September. About INEOS Group INEOS Group is a diversified chemical company consisting of several businesses. Product lines include ethylene oxide-based specialty and intermediate chemicals, fluorochemicals used as refrigerants and propellants, and phenol and acetate products. INEOS Chlor makes chlor-alkali chemicals, and INEOS Films and Compounds manufactures PVC and PET films. INEOS Group was formed in 1998 after a management buyout led by CEO Jim Ratcliffe, who controls the group. Ratcliffe has placed INEOS among the world's top chemical companies (with ExxonMobil, Dow, and BASF) through his many and varied acquisitions. INTIMAS GROUP: In Administration; 200 Jobs at Risk -------------------------------------------------- Times Online reports that Intimas Group plc has gone into administration, putting around 200 jobs at risk. Times Online relates the group called in PricewaterhouseCoopers after being hit by trading woes and the impact of the weak pound on import costs. The company, Times Online discloses, reported losses of GBP1.65 million in the six months to June 30 last year. Stuart Maddison, joint administrator and partner at PwC in East Midlands, as cited by Times Online, said he hoped to sell the group as a going concern. Intimas Group plc -- http://www.intimas.co.uk/-- is a designer and supplier of ladies' intimate apparel and swimwear with a portfolio of brands comprising Lepel, Discover Mademoiselle, Charnos Lingerie and Ted Baker Intimates. The Company operates predominantly in the United Kingdom. Lepel offers a range of lingerie, swimwear and sleepwear. Charnos develops products using Italian silks, exquisite Swiss and Austrian embroideries and refined French laces in carefully developed shapes. During the year ended December 31, 2007, the Company opened two high street stores to gauge consumer interest in a specialist branded lingerie retailer. TATA MOTORS: To Cut 300 Jobs and Halt X-Type Car Production ----------------------------------------------------------- Peter Stiff at Times Online reports that Jaguar Land Rover, owned by India's Tata Motors Ltd., is to cut 300 jobs at its plant in Merseyside and cease production of its X-Type car by the end of the year. According to Times Online, JLR will seek voluntary redundancies at the factory in Halewood, which employs about 2,000 workers, and will also close for three weeks in September in response to the weak car market. "Jaguar Land Rover's retail sales fell by 28 per cent in the past 10 months. We have taken unprecedented actions to cut costs including reduced production volumes, significant cuts to investment plans and some 2,200 job losses," Times Online quoted David Smith, chief executive of Jaguar Land Rover, as saying. "Ceasing production of the X-Type early, with further redundancies and temporary shutdowns at Halewood is necessary to protect our other investment plans." Financial Support Graham Ruddick at Telegraph.co.uk reports Mr. Smith said further action could be necessary but will depend on the state of the market and the "speed with which the already-approved EUR340 million (GBP292 million) European Investment Bank loan can be drawn. Telegraph.co.uk discloses unions said on Wednesday the British government must support JLR's application for financial support as a "matter of urgency". According to Telegraph.co.uk, Len McCluskey, assistant general secretary of Unite, the trade union, stressed the importance of new investment in the company. Mr. McCluskey, as cited by Telegraph.co.uk, said "A new product is pivotal to the long-term future of the Halewood plant". Telegraph.co.uk relates the government said discussions are "still in process" with JLR and that the job cuts reflect the "downturn in the economy". About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 27, 2009, Standard & Poor's Ratings Services lowered its corporate credit rating on India-based automaker Tata Motors Ltd. to 'B+' from 'BB-'. The rating remains on CreditWatch with negative implications, where it was placed on Dec. 12, 2008. At the same time, S&P lowered its issue rating on the company's senior unsecured notes to 'B+' from 'BB-' and also kept the rating on CreditWatch with negative implications. S&P said the rating action follows material deterioration in Tata Motors' cash flows and related metrics on a consolidated basis, derived from an adverse operating environment, which, combined with significantly high debt levels, will affect its credit protection measures beyond those consistent with a 'BB' rating category. On June 4, 2009, Moody's Investors Service affirmed the B3 corporate family rating of Tata Motors Ltd. The outlook on the rating is changed to stable from negative. WHITE TOWER: Debt Canceled; Payments on Loans Accelerated --------------------------------------------------------- Paul Armstrong at Bloomberg News reports that debt of White Tower 2006-3 Plc, the company linked to U.K. investor Simon Halabi that sold mortgage bonds totaling GBP1.15 billion (US$2.5 billion), was canceled Wednesday after payments were accelerated on its loans. Bloomberg relates White Tower said in a statement it received two notices from Hatfield Philips International Ltd., acting on behalf of the loans' servicer, requesting the acceleration. Default On July 8, 2009, the Troubled Company Reporter-Europe, citing Bloomberg, reported investor Mr. Halabi's real-estate companies failed to remedy a default on the mortgage bonds. Bloomberg said that, according to Hatfield Philips, Mr. Halabi's companies had until the close of business on July 2, to stave off a default on bonds that repackage loans to nine London properties including JPMorgan Chase & Co.'s offices at 125 London Wall and 60 Victoria Embankment. Bloomberg disclosed White Tower, the issuer of the notes, had 10 days to remedy the default after the bonds, which mature in 2012, breached covenants because the properties halved in value. According to Bloomberg, Andrew Currie, head of Europe commercial mortgage-backed securities at Fitch Ratings in London, said Mr. Halabi's companies are unlikely to repay the bonds and will probably be forced to sell the underlying properties, which were valued at GBP929 million as of June 8, down from GBP1.83 billion in October 2006. * Fitch Reports Slowdown in EMEA Capital Goods Sector Performance ----------------------------------------------------------------- In advance of its forthcoming mid-year EMEA Industrials sector outlook update, Fitch Ratings says the credit outlook for most investment grade EMEA Capital Goods companies, excluding those in the household appliance industry, remains stable during the second half of 2009, despite the impact of the global economic downturn. However, in contrast to investment grade companies, the performance of the agency's portfolio of private shadow-rated leveraged capital goods companies, whose Issuer Default Ratings range from 'BB' to 'CCC', has been hit by the rapid economic deterioration since Q408 resulting in the majority of issuers being downgraded during H109, with 38% of companies now in the 'B-' and below rating categories. For household appliance manufacturers, falling discretionary consumer spending, in combination with a continued weakness in construction markets and the more limited availability of consumer finance, is exacerbating the sharp drop in demand for appliances in 2009. Against this backdrop of expected flat to negative market growth, household appliance manufacturers AB Electrolux ('BBB-') and Arcelik A.S. ('BB-') have Negative Outlooks, reflecting Fitch's concerns about their ability to match cost reduction with declining sales; to contract working capital to generate free cash flow and their foreign currency exposures. Operating results in Q408 and Q109 were significantly worse than in prior quarters, and all companies in Fitch's rated EMEA capital goods universe saw results decline during this period. In particular, the agency notes that the timing in the deterioration of earnings as well as the extent of their decline diverged significantly: early-cycle companies like Legrand SA ('BBB'/'F3'/Stable) experienced the impact of the current slowdown in Q408, whereas late-cycle companies like ABB Ltd ('BBB+'/'F2'/Stable) were affected by a decline in sales and order intake only from Q109. Demand from defensive end-market customers provided some stability to companies like GEA Group AG ('BBB-'/'F3'/Stable), while discretionary consumer goods exposure negatively affected issuers like Royal Philips Electronics ('A-'/'F2'/Stable). "Given the sound and conservative financial profiles that most investment grade issuers demonstrated at the beginning of the downturn, Fitch does not anticipate significant downward pressure on ratings for companies in this group. Nevertheless, recovery prospects for issuers exposed to consumer spending are weak, while only slightly better for those with exposure to energy-efficient products and fiscal stimulus induced infrastructure spending," said Tom Chruszcz Director, in Fitch's Industrials group. Liquidity for most investment grade companies in the sector remains strong and Fitch notes that share buyback programmes have been put on hold to further preserve cash. Nevertheless, the potential for opportunistic M&A activity is not completely excluded for companies with strong cash generation abilities and solid balance sheets. The full mid-year EMEA Industrials sector review report will be published during the week commencing July 20. * BOOK REVIEW: Distressed Investment Banking - To the Abyss and Back --------------------------------------------------------------- Author: Henry T. Owsley and Peter S. Kaufman Publisher: Beard Books Hardcover: 231 pages List Price: US$74.95 by Henry Berry The authors head a consulting firm that they named the The Gordian Group. That name was chosen to imply that, like Alexander the Great cutting through the Gordian knot of myth, their consulting group can cut through the problems facing distressed companies. Owsley and Kaufman accomplish this by contacting the various stakeholders and investigating all relevant factors of the problems facing a distressed company. With this broad-ranging approach, Owsley and Kaufman identify and isolate crucial problems and provide experienced, practicable guidance for resolving them. Or as the authors put it, "We seek not merely to unravel thorny financial 'knots' . . . we seek to slice through them." In this case, the name of the group is not just an inspired marketing image. As the text of the book and examples from the firm's work with clients evidence, they have developed an approach that deals with the knottiest of problems facing distressed companies and do so to the satisfaction of a range of stakeholders. The premise of this approach is that "conflicts of interest are intolerable, and that large investment banks cannot help but have conflicts of interest when working in the distressed patch." As anyone familiar with this field knows, buying and selling a distressed company commonly leaves big winners and big losers. Certain groups, often top executives and the investment group purchasing a distressed company, profit from the sale. Other groups, often stockholders and employees, lose out. Of course, avoiding or absolving conflicts of interest in the interest of fairness to stakeholders at all levels and in all quarters is not only desirable to allow a pending sale of a distressed company to progress smoothly, but is also required by law. However, as the lopsided results of many sales demonstrate, equitable results do not happen often. The object of this book is to provide advice and lessons to ensure that equitable results do happen more often than not. Owsley and Kaufman realize that, when it comes to resolving problems with distressed companies, there is "no silver bullet solution [to be] found that makes everyone wealthy and happy and whole." The situations of distressed companies have, in most cases, been years in the making, often exacerbated by a corporate culture that is "more likely to fiddle while a lot of other people's money burns." The key to increasing and insuring fairer outcomes of distressed situations is communication with all stakeholders. This communication not only gets the varied stakeholders involved in the process of dealing with the distressed situation, but also brings their respective concerns, ideas, resources, expectations, and hopes into the open so that no one group such as top executives or an investment group can take over the process for its exclusive ends. What is unique about Owsley's and Kaufman's book is that it moves the crux of considerations and related activities regarding distressed corporations from the technicalities of financial issues to the rightful interests of a network of stakeholders. This does not mean that resolving disagreements will be any different than they might be otherwise; nor will the amount of cash involved in a distressed situation be different. However, the authors do offer invaluable advice on how to abet the process by recognizing the necessity of an equitable distribution of the sacrifices in distressed situations. Principles of the Gordian Group consulting firm for distressed companies, Henry Owsley and Peter Kaufman have been active in varied parts of this business field for many years. They are authors of numerous books. ********* 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, Joy A. Agravante 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 * * *