/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090930.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, September 30, 2009, Vol. 10, No. 193 Headlines A U S T R I A DAVID THURNER: Claims Filing Deadline is October 5 GEKO FINANZ: Claims Filing Deadline is October 20 GERHARD DRESEL: Claims Filing Deadline is October 15 RICHARD FUNDER: Claims Filing Deadline is October 20 SONNSTEIN GMBH: Claims Filing Deadline is October 5 D E N M A R K KALMAR STRUCTURED: Moody's Cuts Rating on Class C Notes to 'Ca' G E R M A N Y DVB BANK: Moody's Cuts Bank Financial Strength Rating to 'D+' GENERAL MOTORS: Opel Restructuring Talks Making Progress KABEL DEUTSCHLAND: Fitch Affirms Issuer Default Rating at 'BB-' I C E L A N D GLITNIR BANK: Creditors to Get 22%-36% Recovery on Claims I R E L A N D CANWEST GLOBAL: MediaWorks Ireland Sells Stake in Ten Holdings INDEPENDENT NEWS: Board Approves Debt Restructuring Plan RAHAXI INC: Revenues May Be Insufficient to Fund Capital Needs WARNER CHILCOTT: Moody's Assigns 'Ba3' Rating on Senior Facilities I T A L Y A2A SPA: Faces Fine on Illegal State Aid, Saglia Says K A Z A K H S T A N ASIA ENERGO: Creditors Must File Claims by October 7 ASTYK LLP: Creditors Must File Claims by October 7 DAR SERVICE: Creditors Must File Claims by October 7 KASKAD 9: Creditors Must File Claims by October 7 KOSTANAI ASIA: Creditors Must File Claims by October 7 KTM SECURITY: Creditors Must File Claims by October 7 MEJ STROY: Creditors Must File Claims by October 7 SHEIH HAN: Creditors Must File Claims by October 7 TITAN CONSTRUCTION: Creditors Must File Claims by October 7 UST-KAMENOGORSKAYA: Creditors Must File Claims by October 7 K Y R G Y Z S T A N MVR CREDIT: Creditors Must File Claims by October 17 P O L A N D ELEKTRIM SA: Court Denies Telco's Request for Arbitral Award TVN SA: S&P Downgrades Long-Term Corporate Credit Rating to 'BB-' R U S S I A ARTEM-STROY: Creditors Must File Claims by October 4 BAKHUS LLC: Creditors Must File Claims by October 4 DELANCE LTD: S&P Downgrades Corporate Credit Rating to 'CC' EVRAZ GROUP: Moody's Downgrades Corporate Family Rating to 'Ba3' KIT FINANCE: Moody's Confirms 'Caa2' Long-Term Deposit Ratings NEFTE-ZAVOD OJSC: Creditors Must File Claims by October 4 ORENBURGSKAYA ACCUMULATOR: Bankruptcy Hearing Set October 7 REGIONAL CONSTRUCTION: Creditors Must File Claims by October 4 RUSSIAN WOLFRAMITE: Creditors Must File Claims by October 4 RUSSKIY LES: Creditors Must File Claims by November 4 SOLCHART COMPANY: Declares Bankruptcy STANDARD BANK: Fitch Affirms Individual Rating at 'D/E' STEEL COMPANY: Creditors Must File Claims by October 4 TROIKA DIALOG: Fitch Assigns 'B+' Short-Term Issuer Default Rating TUMENSKIY REGION: Creditors Must File Claims by October 4 ZYRYANSKIY BUTTER: Creditors Must File Claims by October 4 S W I T Z E R L A N D MAMMUTRANS LLC: Claims Filing Deadline is December 28 UBS AG: Wants to Exit Swiss Government's Bad Bank Scheme, CEO Says U K R A I N E BUREAU-OFERTA LLC: Creditors Must File Claims by October 4 IKAR LLC: Creditors Must File Claims by October 4 LEMESCHIKHA AGRICULTURAL: Creditors Must File Claims by October 3 NAFTOGAZ NJSC: Moody's Cuts Probability of Default Rating to 'Ca' SILUR OJSC: Creditors Must File Claims by October 4 STG LLC: Creditors Must File Claims by October 3 U N I T E D K I N G D O M AW SINCLAIR: Put Into Administration; 97 Jobs at Risk CLARIS LTD: Moody's Lifts Rating on Series 97/2007 Notes to 'Ba2' EMI GROUP: Citigroup May Push for Bankruptcy to Recover Loan EUROPEAN PRIME: S&P Downgrades Rating on Class D Notes to 'B-' FARRINGDON MORTGAGES: Fitch Cuts Rating on Class B2a Notes to 'B' FARRINGDON MORTGAGES: S&P Affirms Ratings on Class B2a Notes at BB GEMINI PLC: S&P Downgrades Rating on Class E Notes to 'B-' GEMMA GROUP: Assets Sold to Bombardier Transportation HARGREAVES SERVICES: Secures GBP115 Mln Debt Package KINGSTON MANAGEMENT: In Administration; Begbies Traynor Appointed LEHMAN BROTHERS: World's Top Banks File Billions in Claims LOGOS TECHNOLOGIES: Business Sold in Pre-Pack Deal MR LUCKY: PwC Appointed as Joint Administrators VIRGIN MEDIA: LSE Trading Starts Tomorrow, Oct. 1 * UK: Autumn Critical Period for Hotel Companies, KPMG Says X X X X X X X X * S&P's 2009 Global Corporate Default Tally at 216 ********* ============= A U S T R I A ============= DAVID THURNER: Claims Filing Deadline is October 5 -------------------------------------------------- Creditors of David Thurner KEG have until October 5, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 19, 2009 at 1:00 p.m. For further information, contact the company's administrator: Dr. Peter Hajek senior Blumengasse 5 7000 Eisenstadt Austria Tel: 02682/63108 Fax: 02682/65640 E-mail: eisenstadt@hbw.co.at GEKO FINANZ: Claims Filing Deadline is October 20 ------------------------------------------------- Creditors of Geko Finanz-Consult GmbH have until October 20, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 3, 2009 at 10:00 a.m. For further information, contact the company's administrator: Dr. Christiane Pirker Hasenhutgasse 9 Haus 3 1120 Vienna Austria Tel: 817 57 57, 817 57 67 Fax: 817 57 55 17 E-mail: Dr.Christiane.Pirker@chello.at GERHARD DRESEL: Claims Filing Deadline is October 15 ---------------------------------------------------- Creditors of Gerhard Dresel GmbH have until October 15, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 29, 2009 at 10:15 a.m. For further information, contact the company's administrator: Dr. Stefan Langer Oelzeltgasse 4 1030 Vienna Austria Tel: 712 63 02, 713 61 92 Fax: 713 61 92 22 E-mail: kanzlei@kosesnik-langer.at RICHARD FUNDER: Claims Filing Deadline is October 20 ---------------------------------------------------- Creditors of Richard Funder GmbH have until October 20, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 3, 2009 at 9:45 a.m. For further information, contact the company's administrator: Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31 1 E-mail: markus.siebinger@der-rechtsanwalt.at SONNSTEIN GMBH: Claims Filing Deadline is October 5 --------------------------------------------------- Creditors of SonnStein GmbH have until October 5, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 12, 2009 at 10:30 a.m. For further information, contact the company's administrator: Dr. Paul Wachschuetz Postgasse 6/IV 9500 Villach Austria Tel: 04242/28896 Fax: 0424/28896-6 E-mail: rajw@inode.at ============= D E N M A R K ============= KALMAR STRUCTURED: Moody's Cuts Rating on Class C Notes to 'Ca' --------------------------------------------------------------- Moody's Investors Service has taken these rating actions on notes issued by Kalmar Structured Finance A/S, a static synthetic CDO squared transaction referencing 119 corporate reference entities incorporated in Europe, North America along with Emerging Markets sovereign and corporate credits, as well as another two lower mezzanine pieces of the iTRAXX and CDX indexes. Issuer: Kalmar Structured Finance A/S - Secured Notes III -- Class A1 Secured Notes III due 2011, Downgraded to Caa2; previously on Feb. 23, 2009 Downgraded to Ba3 -- Class A2 Secured Notes III due 2011, Downgraded to Caa2; previously on Feb. 23, 2009 Downgraded to Ba3 -- Class B1 Secured Notes III due 2011, Downgraded to Caa3; previously on Feb. 23, 2009 Downgraded to Caa1 -- Class B2 Secured Notes III due 2011, Downgraded to Caa3; previously on Feb. 23, 2009 Downgraded to Caa1 -- Class C Secured Notes III due 2011, Downgraded to Ca; previously on Feb. 23, 2009 Downgraded to Caa3 Moody's explained that the rating action taken is the result of the deterioration of the credit quality of the reference portfolio. The 10 year weighted average rating factor of the portfolio, not adjusted with forward looking measures, has deteriorated from 898 from the last rating action to 1241, equivalent to an average rating of the current portfolio of B2. The reference portfolio includes an exposure to CIT Group, Inc., Ambac Financial Group, Clear Channel Communications, Inc., and Harrah's Operating Company, Inc., which have experienced substantial credit migration in the past few months, and are now rated Ca. The Retail, Insurance and Banking industry sectors are the most represented, weighting 10.07%, 8.10% and 6.67%, respectively, of the portfolio initial notional. Moody's monitors this transaction using primarily the methodology and its supplements for CSO as described in Moody's Rating Methodology papers: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (September 2009) In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of rating committee considerations. These qualitative factors include, among others, the structural protections in each transaction, the recent deal performance in the current market environment, the strength of the legal framework as well as specific documentation features, and selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. ============= G E R M A N Y ============= DVB BANK: Moody's Cuts Bank Financial Strength Rating to 'D+' ------------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating of DVB Bank SE to D+ from C-, reflecting its expectation of weakening asset quality in the bank's loan portfolios. The D+ BFSR maps to a baseline credit assessment of Baa3. DVB's A1 long- term debt and deposit ratings and A2 subordinated debt ratings were confirmed. The Prime-1 short-term rating was affirmed. The rating action includes the review for possible downgrade initiated in June 2009. The outlook on all the ratings is negative Weakening Asset Quality Prompted BFSR Downgrade Moody's decision to further downgrade DVB's BFSR to D+ (mapping to a BCA of Baa3) from C- (Baa2 BCA) after a review of its ratings was prompted by its expectation that the bank, a specialized transport finance lender, will suffer from significant asset quality deterioration and, subsequently, rising credit losses over the next 12-18 months. Moody's placed DVB's senior unsecured debt and deposit ratings and its senior subordinated rating on review for possible downgrade in June 2009. The review focused on the bank's overall capacity to absorb possible credit losses and its ability to generate sufficient internal capital. Moody's also incorporated into its analysis DVB's investments in closed-end funds in the shipping, aviation and rail sectors, initiated by its investment management division The outcome of Moody's stress tests on DVB reflects its view that the bank will post subdued earnings in the next few quarters and at the same time, may have to account for potentially considerable losses in 2010-11 on both its asset finance loan portfolios (in particular ship financing and aviation) and its correlated closed- end equity fund investments, which contain sizeable equity for ship finance. Moody's acknowledges DVB's relatively strong regulatory capitalization under Basel II (it reported a ratio of 14.4% at the end of H1 2009), which provides the bank with a buffer against the effects of adverse rating migrations. However, a strengthening US dollar could weaken regulatory capitalization ratios as the bank's loan book is largely denominated in that currency, translating potentially adverse currency movements into higher risk-weighted assets. Moody's views positively the bank's clear specialization, dedicated management and long-standing experience in managing exposures in the transportation sector. Negative Outlook Driven by Low Predictability of Actual Losses in Shipping The negative outlook on the D+ BFSR reflects that Moody's worst- case scenario for the ship financing segment could potentially exert higher-than-expected pressure on the bank's capital levels, aggravated by losses from its equity fund investments, which could result in a downgrade over the next 12-18 months. The rating agency will therefore closely monitor actual credit losses and rising impairments from DVB's fund investments and evaluate the bank's ability to absorb such losses while maintaining its existing comfortable capital cushion. Long-Term Ratings Benefit From Parental Support DVB's senior unsecured ratings incorporate Moody's assessment of a very high probability of support from the parent, DZ BANK AG Deutsche Zentral-Genossenschaftsbank (rated Aa3/P-1, one of the two central banks in the German co-operative banking sector) and indirectly from the co-operative sector, represented by the Bundesverband der Deutschen Volksbanken und Raiffeisenbanken. Regarding the negative outlook on the A1 ratings, Moody's emphasises that a downgrade of DVB's D+ BFSR by one notch would be likely to prompt a downgrade of its debt and deposit ratings. The last rating action on DVB was on June 23, 2009, when Moody's downgraded DVB's BFSR to C- and placed all its ratings on review for possible downgrade. Headquartered in Frankfurt, Germany, DVB reported total assets of EUR17.9 billion at the end of June 2009 and a net profit of EUR48.7 million for H1. GENERAL MOTORS: Opel Restructuring Talks Making Progress -------------------------------------------------------- John Reed, Daniel Schafer and Nikki Tait at The Financial Times report that participants in the German-led talks to bail out and restructure Opel are making progress on agreeing cuts in headcount, pay and capacity at General Motors Co.'s European unit. According to the FT, the parties aim to have preliminary agreements signed by next week. Canada's Magna International Inc., which is set to buy control of Opel with Russia's Sberbank, and GM want to sign the agreements by the first days of October in order to secure regulatory approval from the European Union in time to close the deal by late November or early December, the FT says. The FT relates the European Union's competition chief, Neelie Kroes, on Tuesday implored Germany to act more urgently as it leads negotiations on the rescue. According to the FT, Ms. Kroes told European lawmakers it was a case of "the sooner the better� that the Opel situation was clarified. "We are running out of time," the FT quoted Ms. Kroes as saying. Citing people close to the situation, the FT discloses Magna's talks with unions about employees' contribution to the restructuring are also progressing quickly. The FT notes aside from any job cuts, Magna is negotiating wage cuts and a profit- sharing scheme for Opel's workers, who will in exchange receive a 10% stake in the carmaker. Andreas Cremer and Rainer Buergin at Bloomberg News report that German Chancellor Angela Merkel's designated coalition partner will probably let Magna's purchase of GM's Opel unit proceed. Bloomberg relates Joerg-Uwe Hahn, the Free Democratic Party's head in the state of Hesse, said Monday the party, which has opposed German government backing of the deal as wasteful of taxpayers' money, is now likely to recognize that the transaction should go ahead. Spain Paul Tobin at Bloomberg News reports that Spanish Industry Minister Miguel Sebastian said Magna will present Oct. 7 its industrial plan for Opel. According to Bloomberg, Mr. Sebastian said Spain will wait to see the plan before deciding whether to offer financial support to Magna. Emma Ross-Thomas at Bloomberg News reports Prime Minister Jose Luis Rodriguez Zapatero said that he has consulted with Ms. Merkel about the Spanish operations of Opel. Mr. Zapatero, as cited by Bloomberg, said the carmaker will receive "significant" public aid. Scrutiny Vanessa Furhams at The Wall Street Journal reports Spain urged European regulators to investigate Opel's planned sale to Magna. The WSJ relates Spain's industry minister asked EU commissioners to examine whether the deal unfairly spares Opel's German operations from job cuts and possible plant closures that are planned. Mark Mulligan and Daniel Schafer at The Financial Times report in a letter dated Sept. 28, Mr. Sebastian insists that any reorganization of the the carmaker's European operations must "make best possible use of the company's most efficient assets". Efficiency John Reed at The Financial Times, citing internal company data, reports the British and Spanish car plants under threat of heavy cuts in Berlin's rescue plan for Opel produce cars more efficiently than two of the three German factories. According to the FT, the figures for December 2008 show the car plant in Ruesselsheim in Germany, Opel's hometown, took nearly 10 hours longer to assemble a car than the company's main UK car plant in Ellesmere Port, and nearly 14 hours longer than the carmaker's factory in Zaragoza, Spain. Opel's Belgian plant in Antwerp, which Magna may close, took 25.2 hours to assemble a car in December, the FT states. The FT notes that while this made the factory only Opel's sixth most efficientfactory in Europe, it was still more efficient than factories in Gliwice, Poland, and in Ruesselsheim. Karin Matussek at Bloomberg News, citing the Westdeutsche Allgemeine Zeitung, discloses Opel labor leader Rainer Einenkel criticized a report that the carmaker's U.K. and Spanish plants are more efficient than two of its three German factories. Bloomberg relates Mr. Einenkel, labor leader at Opel's plant in Bochum, Germany, said the report compared apples with oranges. As reported in the Troubled Company Reporter-Europe on Sept. 17, 2009, GM chief executive Fritz Henderson confirmed Magna's plans to cut 10,500 jobs or about a fifth of Opel's workforce in Europe. GM's plant in Mr. Henderson said GM's plant in Antwerp was "at risk" of being shut down, although no final decision had been taken to close it. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- as 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). 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. 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, serves as the Chief Executive Officer for Motors Liquidation Company. 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. 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 KABEL DEUTSCHLAND: Fitch Affirms Issuer Default Rating at 'BB-' --------------------------------------------------------------- Fitch Ratings has affirmed Kabel Deutschland Vertrieb und Service GmbH & Co AG's Long-term Issuer Default Rating at 'BB-', with a Stable Outlook. The agency also affirmed the company's senior secured bank facilities at 'BB+'. At the same time, Fitch affirmed the holding company Kabel Deutschland GmbH's senior notes at 'BB-'. The IDR reflects the strength of KDS's business model with utility-like revenue streams from its large basic TV subscriber base, and increasing blended average revenue per user supported by solid customer take-up of higher ARPU premium services (broadband, telephony and pay-TV). Despite challenging economic conditions, the company continued to produce good operational and financial performance delivered in the first quarter to June 2009 suggesting that the company remains on track to deliver its FY09/10 (ending March 2010) guidance. In Fitch's view this is further evidence that the company's triple-play strategy remains entirely valid. KDS ratings however reflect the low level of free cash flow generated so far due to three consecutive years of high capex, including to a lower degree the effects of the Orion acquisition, which together have resulted in the group's initial deleveraging plan being significantly pushed back. While KDS's marked operational and financial performance improvements could otherwise signal upward rating momentum, Fitch also takes into consideration the company's willingness to participate in the further consolidation of the German cable market -- and the potential impact on leverage -- as well as FCF generation which is still weaker than similarly rated peers. Fitch notes that FY08/09's FCF benefited from the one-off effect of the Orion acquisition on working capital. The Stable Outlook factors in Fitch's expectation that KDG will continue to benefit from its attractively priced offering compared to the competition in a broadband market that has lower penetration compared to the rest of Europe. In addition, through its DOSCSIS 3.0 upgraded network KDG is in a position to maintain its speed advantage against competition particularly Deutsche Telekom's new VDSL network. Fitch also expects that competitive pressures in the German sector may ease with the consolidation of alternative operators who have driven margin squeeze in recent years. KDG's liquidity should remain comfortable, with sufficient headroom under its EUR325 million revolving facility. For FY09/10, Fitch anticipates an improvement in KDG's total net cash pay and senior debt leverage measures from LTM to June 2009 levels of 4x and 2.9x respectively, due to higher expected EBITDA and FCF generation. In the first quarter to June 2009 KDG continued to deliver solid quarter-on-quarter revenue growth of 4.6% to EUR367.2 million, and increase adjusted EBITDA (before non-cash management compensation and restructuring expenses) by 10.5%. Thanks to the company's high operational gearing and management's cost control, group EBITDA margin strengthened further to 42.3% in the LTM-June-2009 from 39.2% in the same period in 2008. KDG saw a material improvement in operating cash flow (EBITDA net of capex) to EUR241 million from EUR122 million despite the limited reduction in capex to EUR354 million in LTM-June-2009 from EUR362 million. KDG continued to benefit from solid consumer interest in its triple-play offer with new services' revenue generating units growing 34.7% y-o-y in the LTM-June-2009, essentially driven by internet (305,000 new RGUs) and phone (344,000 RGUs) services. In total KDG added 952,300 premium RGUs while at the same time the erosion of its cable access segment was limited to only 74,600 RGUs. ============= I C E L A N D ============= GLITNIR BANK: Creditors to Get 22%-36% Recovery on Claims --------------------------------------------------------- Glitnir Bank hf's creditors will get between 22% and 36% of what they're owed, Omar R. Valdimarsson at Bloomberg News reports, citing the bank's resolution committee. Bloomberg relates Arni Tomasson, chairman of the committee, citing an evaluation report, said as of June 30, the value of Glitnir's assets stood at EUR4 billion (US$5.8 billion), while its liabilities were EUR13.7 billion. As reported in the Troubled Company Reporter-Europe on Sept. 25, 2009, Bloomberg News said the bank's creditors can take a 95% stake in Islandsbanki Bank, the state-controlled unit of Glitnir, immediately or receive a bond issued by the bank with the option to hold as much as 90% of its shares between 2011 and 2015. "Overall, the bank's creditors have been positive towards the two options available," Bloomberg quoted Mr. Tomasson as saying. �The decision between the two options will be based on what we believe gives the creditors the highest return, taking into account the inherent risk. We plan to announce the decision on which option will be chosen on Sept. 30." About Glitnir Banki Headquartered in Reykjavik, Iceland, Glitnir banki hf -- http://www.glitnir.is/-- offers an array of financial services to corporation, financial institutions, investors and individuals. Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District Court of New York granted Glitnir banki hf permission to enter Chapter 15 of the U.S. bankruptcy code on Jan. 6, 2008. Glitnir has been granted a moratorium pursuant to a ruling of the Reykjavik District Court until Nov. 13, 2009. On May 12, 2009, the court appointed a winding-up board for the bank, which will handle, for instance, claims against the bank while the moratorium is in effect and after winding-up proceedings commence upon the conclusion of the moratorium. ============= I R E L A N D ============= CANWEST GLOBAL: MediaWorks Ireland Sells Stake in Ten Holdings -------------------------------------------------------------- Canwest Global Communications Corp. last week said its subsidiary, CanWest MediaWorks Ireland Holdings, has entered into an agreement with Macquarie Capital Advisers Limited for the sale of all of its ownership interest in Ten Network Holdings Limited by means of a block trade on a fully underwritten basis for gross proceeds of approximately A$680 million (CN$634 million). The sale of the Ten Holdings shares is expected to be completed on or about October 1, 2009 and is subject to customary closing conditions for securities offerings in Australia. In connection with the sale of the shares of Ten Holdings, Canwest Media Inc. has agreed with its senior secured lenders and the members of the ad hoc committee of holders of its US$761 million aggregate principal amount of 8% senior subordinated notes (which are guaranteed by several subsidiaries of CMI, including CMIH) with respect to the use of the net proceeds of the sale. Pursuant to the agreement, the net proceeds will be used as: -- to repay in full all amounts outstanding under the 12% senior secured notes of US$95 million (CN$102 million) issued by CMI and Canwest Television Limited Partnership; -- CN$85 million for general corporate and working capital purposes, including to repay all outstanding borrowings (other than letters of credit) under the senior secured revolving asset-based loan facility with CIT Business Credit Canada Inc., which facility will continue to remain available to CMI after the repayment; and -- to deposit US$398 million (CN$426 million) with the trustee for the benefit of the holders of the 8% senior subordinated notes. The sale of the shares of Ten Holdings is expected to facilitate continuing discussions with the Ad Hoc Committee regarding a recapitalization transaction. CMI and the members of the ad hoc committee have entered into a further extension agreement and forbearance to October 6, 2009. CIT Business Credit Canada Inc. has agreed to extend to October 15, 2009 certain milestones that were to have been achieved by September 25, 2009. The sale of the shares of Ten Holdings requires certain amendments to the indenture governing the 8% senior subordinated notes. Canwest further announced that members of the Ad Hoc Committee holding approximately 70% of the outstanding principal amount of the 8% senior subordinated notes, in excess of the majority threshold required, have agreed with CMI to support the amendments necessary to permit the sale of the shares of Ten Holdings. Further, these members have agreed to cause the record owners through which these members hold their 8% senior subordinated notes to grant their consent to a supplemental indenture implementing these amendments. CMI is launching a consent solicitation process on September 24, 2009 to obtain these necessary consents from the record owners. Unless the consent solicitation is terminated by CMI, upon receipt of the requisite record owner consents, CMI intends to effect the execution of a supplemental indenture containing the amendments. Canwest Global Communications Corp. -- http://www.canwest.com/-- (TSX: CGS and CGS.A,) an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey,Indonesia, Singapore, the United Kingdom and the United States. At May 31, 2009, Canwest Media had C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities. * * * As reported in the Troubled Company Reporter on June 9, 2009, Moody's Investors Service downgraded Canwest Limited Partnership's probability of default rating to Ca/LD and its corporate family to Caa3 after the Company failed to pay US$10 million due under its senior secured credit facility on May 29, 2009, the end of the company's fiscal quarter. This suggests that CLP has chosen to force the issue with its bank lenders, and is also likely an indication that ongoing negotiations with the bank lenders were not going well, according to Moody's. Since the payment includes a principal component and there is no cure period, the bank credit facility is now in default. The lenders have not accelerated repayment. The TCR on June 2, 2009, said Standard & Poor's Ratings Services lowered its ratings on Canwest LP, including the corporate credit and senior secured ratings to 'D' (default) from 'CCC' and the rating on the C$75 million senior subordinated credit facility due 2015 to 'D' from 'CC'. S&P also lowered the rating on the Company's US$400 million senior subordinated notes due 2015 to 'C' from 'CC'. INDEPENDENT NEWS: Board Approves Debt Restructuring Plan -------------------------------------------------------- Salamander Davoudi and Anousha Sakoui at The Financial Times report that the board of Independent News & Media plc has approved a debt restructuring plan following agreements with its creditors. According to the FT, as part of the plan, INM will carry out a debt-for-equity swap that would see its bondholders swap EUR123 million of bonds for an about 46% stake in the company, followed by a rights issue of around EUR90 million at 5 cents. Citing people with knowledge of the situation, the FT discloses under the plan, INM's banks would extend their credit lines to the company for 4-1/2 years and loosen covenants to give the company breathing space to recover, in exchange for an increase in the interest paid on their loans. About Independent News & Media Headquartered in Dublin, Ireland, Independent News & Media PLC (ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and publishing of metropolitan, national, provincial and regional newspapers in Australia, India, Ireland, New Zealand, South Africa and the United Kingdom. It also has radio operations in Australia and New Zealand, and outdoor advertising operations in Australia, New Zealand, South-East Asia and across Africa. The Company also has online operations across each of its principal markets. The Company has three business segments: printing, publishing, online and distribution of newspapers and magazines and commercial printing; radio, and outdoor advertising. INM publishes over 200 newspaper and magazine titles, delivering a combined weekly circulation of over 32 million copies with a weekly audience of over 100 million consumers. In March 2008, it acquired The Sligo Champion. During the year ended December 31, 2007, the Company acquired the remaining 50% interest in Toowoomba Newspapers Pty Ltd. RAHAXI INC: Revenues May Be Insufficient to Fund Capital Needs -------------------------------------------------------------- Management of Rahaxi Inc. plans to take steps it believes will be sufficient to provide the Company with the ability to continue as a going concern. Management intends to raise financing through the sale of its stock in private placements to individual investors. Management may also raise funds in the public markets. The Company warned in a filing with the U.S. Securities and Exchange Commission in August its anticipated revenues from operations will be insufficient to satisfy its ongoing capital requirements for the next 12 months. Rahaxi's fiscal year ends June 30. It has not yet filed its annual report for the fiscal year ended June 30, 2009. If its financial resources are insufficient, the Company will require additional financing to execute its operating plan and continue as a going concern. The Company cannot predict whether the additional financing will be in the form of equity or debt, or be in another form. The Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In any of these events, the Company may be unable to implement its current plans for expansion, repay its debt obligations as they become due, or respond to competitive pressures, any of which circumstances would have a material adverse effect on its business, prospects, financial condition and results of operations. Management believes that with this financing, the Company will be able to generate additional revenues that will allow the Company to continue as a going concern. This will be accomplished by hiring additional personnel and focusing sales and marketing efforts on the distribution of product through key marketing channels currently being developed by the Company. The Company may also pursue the acquisition of certain strategic industry partners where appropriate, and may also seek to raise funds through debt and other financings. In August, Rahaxi reported to the U.S. Securities and Exchange Commission a net loss of US$3,675,124 and US$12,226,686 for the three and nine months ended March 31, 2009, and US$23,150,901 for the year ended June 30, 2008, and had an accumulated deficit of US$109,796,498 as of March 31, 2009. As of March 31, 2009, the Company had US$3,014,871 in total assets against US$5,165,092 in total liabilities, all current, and US$539,013 in non-controlling interest; resulting in US$2,689,234 in stockholders' deficit. Last week, Rahaxi filed an amendment to its Articles of Incorporation with the Secretary of State of Nevada to increase the Company's authorized Common Stock to 1,000,000,000 shares and increase the Company's authorized Preferred Stock to 10,000,000 shares. The amendment was approved by holders of a majority of the outstanding shares of the Company through a Proxy Statement -- written consent solicitation -- that was previously mailed to stockholders on August 10, 2009, and filed with the Securities and Exchange Commission. The amendment to the Company's Articles of Incorporation was filed with the Secretary of State of Nevada on September 21, 2009, and became effective upon filing. About Rahaxi Rahaxi, Inc., formerly FreeStar Technology Corporation, provides payment services and processing. Its principal offices are in Dublin, Ireland; the Company also has offices in Helsinki, Finland; Stockholm, Sweden; Geneva, Switzerland; and Santo Domingo, the Dominican Republic. On November 21, 2008, it filed a Certificate of Amendment to its Articles of Incorporation with the Nevada Secretary of State changing its name to "Rahaxi, Inc." and implementing a one-for-three reverse stock split of its common stock. WARNER CHILCOTT: Moody's Assigns 'Ba3' Rating on Senior Facilities ------------------------------------------------------------------ Moody's Investors Service assigned a rating of Ba3 to the proposed new senior secured credit facilities of Warner Chilcott Corporation, Warner Chilcott Company, LLC, and WC Luxco S.a r.l. At the same time, Moody's assigned a B3 rating to the proposed new senior unsecured notes to be co-issued by Warner Chilcott Company, LLC, and Warner Chilcott Finance LLC. Each of the borrowers under the senior secured credit facilities and co-issuers of the senior unsecured notes is a subsidiary of Warner Chilcott plc, which, together with its subsidiaries, are collectively referred to as "Warner Chilcott". At the same time, Moody's withdrew the ratings on Warner Chilcott's former senior secured credit facilities. In addition, Moody's affirmed Warner Chilcott's B1 Corporate Family Rating, B1 Probability of Default Rating, B3 senior subordinated rating and SGL-1 Speculative Grade Liquidity Rating. The rating outlook is stable. Proceeds of the new senior unsecured notes offering and senior secured credit facilities are expected to be used to fund Warner Chilcott's pending acquisition of The Procter & Gamble Company's pharmaceuticals business for US$3.1 billion. Warner Chilcott's B1 Corporate Family Rating reflects the company's good position in the women's health pharmaceuticals business, offset by its relatively limited scale. The pending acquisition of PGP will significantly improve Warner Chilcott's scale, but will result in higher financial leverage and high product concentration risk in the PGP products Actonel and Asacol. Following the very recent sale of two dermatology products, Moody's anticipates pro forma debt to EBITDA of approximately 2.4 to 2.8 times. Although this leverage ratio is not excessive, risk factors include declining sales of Actonel, a patent challenge on Asacol, and a growth strategy that appears in transition, potentially resulting in higher leverage in the future. The proposed new senior secured bank facilities are rated Ba3 [LGD3, 37%], one notch higher than the B1 Corporate Family Rating because of the support provided by US$380 million of existing senior subordinated notes rated B3 [LGD6, 94%], and US$450 million of proposed senior unsecured notes rated B3 [LGD5, 85%]. These rating remains subject to final transaction terms and amounts, and changes in the capital structure could result in rating changes based on the application of Moody's Loss Given Default Rating Methodology. For instance, in a scenario with a reduced amount of senior unsecured notes, the Ba3 rating on the proposed senior secured bank facilities could be lowered. The SGL-1 Speculative Grade Liquidity rating reflects Moody's view that liquidity will remain very good after the close of the PGP transaction based on strong free cash flow, good availability under the revolving credit agreement and ample headroom under financial covenants. A potential put from Sanofi-Aventis related to Actonel rights could require a large cash outlay by Warner Chilcott, but under most scenarios liquidity should remain very strong based on availability through a delayed draw feature of the new term loans. Ratings assigned: * Warner Chilcott Corporation, Warner Chilcott Company, LLC, and WC Luxco S.a r.l. (Borrowers) * Ba3 [LGD3, 37%] senior secured Term Loan A of $1.0 billion due 2014 * Ba3 [LGD3, 37%] senior secured Term Loan B of $1.5 billion due 2015 * Ba3 [LGD3, 37%] senior secured revolving credit facility of $250 million due 2014 * Warner Chilcott Company, LLC, and Warner Chilcott Finance LLC (Co-Issuers) * B3 [LGD5, 85%] senior unsecured notes of $450 million due 2017 Ratings affirmed: Warner Chilcott Company, LLC * B1 Corporate Family Rating * B1 Probability of Default Rating * SGL-1 Speculative Grade Liquidity Rating Rating affirmed with LGD point estimate revisions: Warner Chilcott Corporation * B3 [LGD6, 94%] senior subordinated notes of US$380 million due 2015 Ratings withdrawn: Warner Chilcott Corporation, Warner Chilcott Company, LLC, and Warner Chilcott Holdings Company III, Limited (Former Borrowers) * Ba3 [LGD3, 36%] revolving credit facility due 2011 * Ba3 [LGD3, 36%] Term Loan B due 2012 * Ba3 [LGD3, 36%] Term Loan C due 2012 Moody's last rating action on Warner Chilcott was an affirmation of the company's ratings with a stable outlook on August 24, 2009. Headquartered in Ardee, Ireland, Warner Chilcott plc is a specialty pharmaceutical company currently focused on the women's healthcare and dermatology segments of the U.S. pharmaceuticals market. For the first six months of 2009, the company reported total revenue of approximately US$497 million. ========= I T A L Y ========= A2A SPA: Faces Fine on Illegal State Aid, Saglia Says ----------------------------------------------------- Italian municipal utilities including A2A SpA may have to pay EUR420 million in fines related to state aid deemed illegal by the European Union, Jerrold Colten and Tommaso Ebhardt at Bloomberg News report, citing the country's deputy industry minister, Stefano Saglia. A2A SpA -- http://www.a2a.eu/-- is an Italy-based company engaged in the utility and environmental sector and created as a result of the merger of ASM, AEM and AMSA. The Company divides its activities into five business groups: Energy, including sale of electricity and gas; Heat and Services, including the sale of heat and electricity, as well as heating systems management services and facility management; Environment, including the collection, treatment, disposal and recovery of materials and energy; Networks, including the management of energy transmission and distribution networks, as well as the transport and distribution of natural gas and the management of water cycle, and Corporate and Other Services, including support services, as well as public illumination, traffic regulation systems, video surveillance services and the management of votive. A2A SpA operates through such subsidiaries as A2A Trading Srl, Amsa SpA and A2A Calore & Servizi Srl, among others. =================== K A Z A K H S T A N =================== ASIA ENERGO: Creditors Must File Claims by October 7 ---------------------------------------------------- LLP Asia Energo Invest is currently undergoing liquidation. Creditors have until August 7, 2009, to submit proofs of claim to: Rihard Zorge Str. 9 Turksibsky District 050011 Almaty Kazakhstan ASTYK LLP: Creditors Must File Claims by October 7 -------------------------------------------------- Creditors of LLP Grain Company Astyk until October 7, 2009, to submit proofs of claim to: Tsvetochnaya Str. 4 Shemonaiha East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 19, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan DAR SERVICE: Creditors Must File Claims by October 7 ---------------------------------------------------- Creditors of LLP Dar Service have until October 7, 2009, to submit proofs of claim to: Abai Str. 10a Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on June 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Atyrau Satpayev Str. 3 Atyrau Kazakhstan KASKAD 9: Creditors Must File Claims by October 7 ------------------------------------------------- Creditors of LLP Kaskad 9 have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent Kazakhstan The court commenced bankruptcy proceedings against the company on June 30, 2009. KOSTANAI ASIA: Creditors Must File Claims by October 7 ------------------------------------------------------ Creditors of LLP Kostanai Asia have until October 7, 2009, to submit proofs of claim to: Gorky Str. 10-1 Zatobolsk Kazakhstan The Specialized Inter-Regional Economic Court of Kostanai commenced bankruptcy proceedings against the company on May 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan KTM SECURITY: Creditors Must File Claims by October 7 ----------------------------------------------------- Creditors of LLP Ktm Security have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Satpaev Str. 16 Aktube Kazakhstan The court commenced bankruptcy proceedings against the company on July 13, 2009. MEJ STROY: Creditors Must File Claims by October 7 -------------------------------------------------- Creditors of LLP Mej Stroy Trans have until October 7, 2009, to submit proofs of claim to: Abai Str. 10a Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on June 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Atyrau Satpayev Str. 3 Atyrau Kazakhstan SHEIH HAN: Creditors Must File Claims by October 7 -------------------------------------------------- Creditors of LLP Sheih Han have until October 7, 2009, to submit proofs of claim to: Gorky Str. 10-1 Zatobolsk Kazakhstan The Specialized Inter-Regional Economic Court of Kostanai commenced bankruptcy proceedings against the company on May 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan TITAN CONSTRUCTION: Creditors Must File Claims by October 7 ----------------------------------------------------------- Creditors of LLP Titan Construction have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan The court commenced bankruptcy proceedings against the company on July 17, 2009. UST-KAMENOGORSKAYA: Creditors Must File Claims by October 7 ----------------------------------------------------------- Creditors of LLP Ust- Kamenogorskaya Torgovo-Zakupochnaya Baza have until October 7, 2009, to submit proofs of claim to: Tsvetochnaya Str. 4 Shemonaiha East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 19, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== MVR CREDIT: Creditors Must File Claims by October 17 ---------------------------------------------------- LLC Micro Credit Company MVR Credit is currently undergoing liquidation. Creditors have until October 17, 2009, to submit proofs of claim to: Moskovskaya Str. 194 Bishkek Kyrgyzstan Tel: (+996 312) 31-31-57 =========== P O L A N D =========== ELEKTRIM SA: Court Denies Telco's Request for Arbitral Award ------------------------------------------------------------ The Warsaw Court of Appeals denied the request of Deutsche Telekom (DT) and Elektrim for the recognition in the Republic of Poland of the arbitral award rendered in Vienna on November 26, 2004, confirming the position of Elektrim Telekomunikacja (Telco), a 51% Vivendi subsidairy. The decision is binding and enforceable in Poland. All of DT's and Elektrim's motions for recognition in the proceedings were rejected. After the Austrian Supreme Court, this decision marks another and significant victory for Vivendi in its dispute with DT and Elektrim over its investment in the Polish telecom operator PTC. As claimed by Vivendi since 2004 and contrary to the assertions of DT and Elektrim, the Warsaw Court of Appeals affirmed that the arbitral award has no effect on Telco's 48% ownership of PTC. DT and Elektrim had misused the arbitral award for years as false justification to lay claim to control those PTC shares and to exclude Telco out of PTC. This decision confirms that DT and Elektrim cannot claim Telco's 48% ownership on the basis of the arbitral award. About Elektrim Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- is a holding company with subsidiaries engaged in energy and telecommunication services. As reported in the Troubled Company Reporter-Europe, Elektrim entered composition bankruptcy proceedings in August 2007. TVN SA: S&P Downgrades Long-Term Corporate Credit Rating to 'BB-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit rating on Poland's private TV broadcaster TVN S.A. to 'BB-' from 'BB'. The outlook is negative. At the same time, S&P lowered its issue rating on TVN's Polish zloty (PLN) 500 million senior unsecured bonds to 'B+' from 'BB', one notch below the corporate credit rating on TVN. S&P also lowered its debt rating on the EUR215 million senior unsecured bonds issued by TVN Finance PLC to 'B+' from 'BB-', one notch below the corporate credit rating. S&P has removed all the ratings from CreditWatch with negative implications, where they had been placed on March 13, 2009. "The downgrade follows S&P's review of TVN's business and financial profiles after the successful renegotiation by TVN's parent company, ITI Holdings, of its EUR320 million senior credit facility due 2012," said Standard & Poor's credit analyst Melvyn Cooke. "The lower rating also integrates S&P's view that TVN's majority ownership of "n", following the acquisition of an additional 26% minus one share in "n" from ITI in March 2009, will likely result in material weakening of TVN's free cash flow generation and liquidity over the next two years, and sizable deterioration in TVN's credit measures." In particular, liquidity, which S&P previously considered as a support to the ratings, is now in its opinion weak for the ratings in light of the ongoing, substantial funding needs for "n" and TVN's obligation to pay dividends to cover debt service at ITI. S&P lowered the issue ratings on the senior unsecured bonds issued by TVN and TVN Finance PLC to factor in the marked increase in priority liabilities relative to TVN's total assets; this is linked to TVN's majority ownership of "n". "The negative outlook is based chiefly on S&P's view that TVN's liquidity may further weaken following development of "n" in the next 12 to 18 months," said Mr. Cooke. "Our outlook also incorporates the short-term risks of potential additional deterioration of TVN's free cash flow generation and credit measures during the period. TVN's successful maintenance of available funding �- cash balances and/or credit facilities -- at more than PLN150 million would be in line with S&P's guidelines for the ratings. Assuming this is the case, S&P would consequently anticipate that TVN would have sufficient funding to service dividend payments to ITI, enabling it to adequately cover interest payments. S&P would also expect TVN's ratio of lease-adjusted total debt to EBITDA not to exceed 3.5x in the medium term. The ratings also assume that TVN will maintain its solid position in the Polish TV market and its established track record of high audience share among urban viewers. S&P could downgrade TVN if its available funding were to fall below PLN150 million with no immediate prospects for improvement. Material underperformance at TVN, resulting in sustained negative free cash flow generation and significantly higher-than-expected leverage, would also pressure the ratings. S&P could revise the outlook to stable if TVN were able to restore adequate liquidity, while continuing to post healthy operating performance at its non pay-TV businesses, and if S&P observes steady operating and financial improvement at "n". =========== R U S S I A =========== ARTEM-STROY: Creditors Must File Claims by October 4 ---------------------------------------------------- Creditors of SUE Artem-Stroy-Zakazchik (TIN 2502024129, PSRN 1022500537388, RVC 250201001) (Construction) have until October 4, 2009, to submit proofs of claims to: M. Smolik Temporary Insolvency Manager K. Shefnera Str. 2 690001 Vladivostok Russia The Arbitration Court of Primorskiy will convene on December 23, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?51�8963/2009. The Debtor can be reached at: SUE Artem-Stroy-Zakazchik Kirova Str. 55 Artem 692760 Primorskiy Russia BAKHUS LLC: Creditors Must File Claims by October 4 --------------------------------------------------- Creditors of LLC Bakhus (Alcohol Beverages Production)(TIN 7729031560, PSRN 1027739614187) have until October 4, 2009, to submit proofs of claims to: Yu. Gudkov Insolvency Manager Office 1 Z.A.Kosmedemyanskikh Str. 27 125130 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?40�68474/09�73-262B. The Debtor can be reached at: LLC Bakhus Ryabinovaya Str. 44 1221471 Moscow Russia DELANCE LTD: S&P Downgrades Corporate Credit Rating to 'CC' ----------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Delance Ltd., the holding company of Russian car retailer Rolf Group, to 'CC' from 'CCC+'. The outlook is negative. At the same time, the issue rating on the unsecured notes issued by the group's financing vehicle Colgrade Ltd. and guaranteed by Delance Ltd. and Rolf Group were lowered to 'C' from 'CCC'. The '5' recovery rating on the notes remains unchanged, indicating S&P's expectation of modest (10%-30%) recovery in the event of payment default. The rating action follows Rolf's recent announcement of a public offer to exchange its existing US$250 million notes due in 2010 either for a cash amount of between 60% or 80% of face value, or for a combination of a cash amount of 21% of face value and 79% converted into new notes. "Under its criteria, S&P view a proposed exchange offer at a discount to par by a company under substantial financial pressure as a distressed debt exchange and tantamount to a default," said Standard & Poor's credit analyst Varvara Nikanorava. In addition, S&P understand that the company's financial restructuring measures will include refinancing its existing bilateral bank facilities with the proceeds of a new syndicated facility as well as resetting financial covenants. This reflects, in S&P's view, the company's increasingly weak financial position and the need to secure its liquidity. Furthermore, Rolf has announced the sale of a 40% shareholding in its Mitsubishi distribution business, through which Rolf generates most of its revenues, to Mitsubishi Corp. (A+/Stable/A-1) for a minimum equity consideration of US$72 million, with possible further payments leading to a maximum US$200 million in total if certain conditions are met. It is S&P's understanding that all these transactions are interdependent and that Rolf aims to close them all at one time. "Upon the completion of the tender offer, S&P expects to lower the corporate credit rating on the company to 'SD' (selective default) and lower the rating on the notes to 'D' (default), said Ms. Nikanorava. "Following the financial restructuring and subject to sufficient information, S&P would then assign a new corporate credit rating to Rolf based on the company's new capital structure, maturity schedule, and liquidity profile, as well as on other financial and business risk factors." EVRAZ GROUP: Moody's Downgrades Corporate Family Rating to 'Ba3' ---------------------------------------------------------------- Moody's downgraded Evraz CFR from Ba3 under review to B1. At the same time the ratings for Senior Unsecured totaling US$2,750 million due in 2013, 2015, and 2018 were downgraded from B1 to B2. The outlook of all rating is negative. The rating action concludes the review initiated on June 8, 2009 which was principally focused on the 2009 operating performance and the outlook for 2010, the capacity utilization based on possible volume and price evolution in the steel markets as well as the pace of progress achieved in extending the short term refinancing profile of the debt and the ability of the company to gain headroom under certain covenants included in several debt instruments, which comprise a very significant part of the capital structure. The rating action reflects the agency's view that Evraz will display at the end of 2009 very weak credit metrics for the previous rating category and that the recovery of the financial performance will likely be slow despite the positive measures taken by management to adjust the cost base. At the same time the rating continues to reflect that Evraz is a strong global competitor with a cost efficient assets base and a business profile that has gained geographical diversity, thereby reducing the dependence on Russia, in the past few years. The recently released 1H 2009 results reflect that global steel markets continue to be subdued with a still depressed demand and low prices. Though the agency acknowledges that the company was able to show material positive EBITDA during this exceptionally challenging period, Evraz performance showed that in spite of relatively high capacity utilizations rates at Russian and Ukrainian operations, currently low prices for steel products significantly reduced cash generation capabilities of the company and negatively affected credit metrics. Worse than expected performance by Moody's of the US assets further impacted the overall performance of the company. The expectations for the remaining part of 2009 and 2010 continue to be somewhat bleak and although Moody's forecast that Evraz should be able to continue to generate positive EBITDA and FCF in 2009 with a material improvement in 2010 - based on the management measures rather than a material improvement in the steel industry dynamics -, the previously anticipated pace of reduction in absolute level of debt and gradual restoration of its credit metrics is now most likely to be considerably slower. The B1 rating incorporates the assumption that the debtholders will remain supportive and that Evraz will be successful in regaining comfortable headroom under its financial covenants as well as extend its short-term maturity profile with the conclusion of various new financial arrangements currently in progress. The agency nonetheless notes that there is a material risk of execution associated with a certain level of complexity in these discussions as well as a rather short window to conclude. The recent US$965 million of cash injection into the company via equity/convertible bond placements helped to comfort liquidity. The negative outlook reflects the risk that the discussions to reset certain covenants -- likely to be in breach by the end of 2009 in Moody's view -- could be more difficult that currently anticipated and that the new financing arrangements may not be concluded as and when planned. Moody's underlines that there would be material downward pressure should there be delays in these discussions or signs of possible ultimate failure. However if a positive resolution with adequate headroom for the financial covenants to face contingencies is received in a timely manner and the debt maturity profile extended, Moody's might consider revising the outlook to stable. Moody's would also take into account the ability of the company to generate material free cash flow in 2009 and 2010, which would be instrumental in reducing the absolute level of debt. The last rating action was on 8 June 2009 when Moody's placed CFR of Evraz under review for possible downgrade. Evraz Group is one of the largest vertically integrated steel companies in Russia (by volume and assets) with assets also in Europe, North America and South Africa that produced 17.6 million tones of steel products, reported revenue of US$20.39 billion (58.6% increase Y-o-Y) and EBITDA of US$6.35 billion (45.9% increase Y-o-Y) in 2008. In the 1H 2009 the company reported US$4.6 billion in revenue (57% decrease H-o-H) and EBITDA of US$468 million (87% decrease H-o-H). Evraz's principal assets are steel plants in Russia, Europe, North America, South Africa and Ukraine, iron ore and processing facilities, as well as coal mines, logistics and trading assets. KIT FINANCE: Moody's Confirms 'Caa2' Long-Term Deposit Ratings -------------------------------------------------------------- Moody's Investors Service has confirmed these ratings of KIT Finance Investment Bank (Russia): Caa2 long-term foreign currency and local currency deposit ratings, and E bank financial strength rating. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, has confirmed KIT's B2.ru long-term National Scale Rating. The outlook on all ratings is stable. The confirmation of KIT's ratings reflects Moody's expectations that the recovery plan adopted in June 2009 by Russia's Deposit Insurance Agency -- and agreed upon with the Central Bank of Russia -- will enable the bank to operate as a going concern. The plan aims to settle creditors' obligations and to revive the bank's business. As a result, KIT sold certain assets (Rostelecom shares) and received significant funding from DIA in order to repay previously restructured deposits. According to this recovery plan, KIT Finance is set to develop retail banking and SME business as a new core strategy. However, in Moody's view, a successful implementation of this new strategy in an area that is new for the bank carries considerable uncertainties such as (i) elevated (for a newcomer) asset quality problems and (ii) the ability to gain reasonable franchise, to develop proper processes and technologies, and to acquire a qualified workforce. The new strategy is expected to generate revenues from the new business lines no earlier than 2011. Moody's, therefore, believes that the possibility of returning the funding received from DIA (over a 3-5 year period) will be driven by the expected increase in the price of investment assets which remained on KIT's balance sheet from pre-crisis activities rather than by KIT's core revenue generation or amortization of remaining assets. The stable outlook assigned by Moody's to KIT's ratings reflects the agency's view that significant improvement in the bank's credit standing is unlikely during the next 18 months given the slow recovery in the price of investment assets and the inability of the new strategy to generate meaningful revenues during that time span. On the other hand, Moody's does not expect significant deterioration in KIT's credit standing given the significant support (capital and funding) already provided to the bank and expected to be provided in the near future. Moody's does not incorporate any shareholder or systemic support into the bank's ratings given the lack of strategic fit of KIT to Russian Rilways, KIT's new shareholder, and its low importance to the Russian banking sector. As a result, the Caa2 deposit ratings directly correspond to KIT's Caa2 baseline credit assessment. Moody's previous rating action on KIT was on September 17, 2008 when Moody's downgraded the bank's long-term global local and foreign currency deposit ratings to Caa2 from B2, and its BFSR to E from E+. In addition, the short-term deposit ratings were affirmed at Not Prime. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, downgraded KIT's long- term NSR to B2.ru from A3.ru. All ratings were placed on review with direction uncertain. Based in St. Petersburg, Russia, KIT was a multiple business line entity, albeit dominated by investment and corporate banking and mortgage activities. After the default on September 17, 2008, its assets became mainly composed of the mortgage loan book as well as investment assets. It recorded total assets of ca. US$4 billion at year-end 2008 and is ranked among the 50 largest banks in Russia. NEFTE-ZAVOD OJSC: Creditors Must File Claims by October 4 --------------------------------------------------------- Creditors of OJSC Nefte-Zavod-Stroy (TIN 5250006815)(Construction) have until October 4, 2009, to submit proofs of claims to: A. Golubev Temporary Insolvency Manager Romantikov Str. 22 606100 Pavlovo Russia The Arbitration Court of Nizhegorodskaya will convene on January 26, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?43�19886/2009�26�184. The Debtor can be reached at: OJSC Nefte-Zavod-Stroy Prospcet Pobedy 4a Kstovo Nizhegorodskaya Russia ORENBURGSKAYA ACCUMULATOR: Bankruptcy Hearing Set October 7 ----------------------------------------------------------- The Arbitration Court of Orenburgskaya will convene on Oct.7, 2009 to hear bankruptcy supervision procedure on LLC Orenburgskaya Accumulator Company (Accumulator Batteries Manufacturing)(TIN 5610091103). The case is docketed under Case No. ?47�3139/2009. The Temporary Insolvency Manager is: N. Trachuk Stara-Zagora Str. 25 443090 Samara Russia The Debtor can be reached at: LLC Orenburgskaya Accumulator Company Donguzskaya Str. 28 460027 Orenburg Russia REGIONAL CONSTRUCTION: Creditors Must File Claims by October 4 -------------------------------------------------------------- Creditors of LLC Regional Construction Trade Company have until October 4, 2009, to submit proofs of claims to: A. Danilov Temporary Insolvency Manager Post User Box 32 Postal Office 42 394042 Voronezh Russia The Arbitration Court of Voronezhskaya will convene at 10:00 a.m. on January 14, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?14�8422�2009�28/9B. The Debtor can be reached at: LLC Regional Construction Trade Company Office 21 Dimitrova Str. 53a 394000 Voronezh Russia RUSSIAN WOLFRAMITE: Creditors Must File Claims by October 4 ----------------------------------------------------------- Creditors of LLC Russian Wolframite (Mining and Concentrating Mill)(TIN 7728180320, PSRN 1027739673455) have until October 4, 2009, to submit proofs of claims to: N. Gorbunov Insolvency Manager Post User Box 101 119313 Moscow Russia The Arbitration Court of Smolenskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?62�2235/2008. The Debtor can be reached at: LLC Russian Wolframite Chernyakhovskogo Str. 44 214013 Smolensk Russia RUSSKIY LES: Creditors Must File Claims by November 4 ----------------------------------------------------- Creditors of LLC Russkiy Les (TIN 2804011750, PSRN 1052800197229) (Forestry) have until November 4, 2009, to submit proofs of claims to: L. Fedotova Insolvency Manager Office 105 B. Khmelnitskogo Str. 20 Blagoveshchensk 675000 Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?-04�2853/2009. The Debtor can be reached at: LLC Russkiy Les 9 Maya Str. 210 Belogorsk 676853 Amurskaya Russia SOLCHART COMPANY: Declares Bankruptcy ------------------------------------- Steel Guru, citing Interfax, reports that the Solchart Company, the owner of the dry cargo carrier Arctic Sea, has declared itself bankrupt, blaming the poorly coordinated measures taken by investigators of Russian prosecutors' Investigative Committee. Steel Guru relates company director Viktor Matveyev, as cited by Interfax, said "Money needs to be found to continue using the vessel, to bring it back to proper working condition, to provide it with everything necessary as well as to pay back our creditors." STANDARD BANK: Fitch Affirms Individual Rating at 'D/E' ------------------------------------------------------- Fitch Ratings has assigned Russia-based Troika Dialog Group Limited a Long-term foreign currency Issuer Default Rating of 'B+' with a Stable Outlook. TDGL, registered in the Cayman Islands, is the ultimate holding company of the Russia-based investment banking group, known as Troika Dialog. The agency has simultaneously downgraded Russia-based ZAO Standard Bank's Long- term foreign currency IDR to 'B+' from 'BBB', whilst assigning a Stable Outlook, and affirmed its Individual Rating at 'D/E', whilst removing it from Rating Watch Evolving, following the completion of its acquisition by TDGL. A full rating breakdown is provided at the end of this comment. The ratings assigned to TDGL reflect Troika Dialog's good investment-banking franchise in Russia, currently low leverage, experienced management team and its good risk management. The ratings also factor in the current and prospective benefits from the company's partnership with Standard Bank Group, following SBG's acquisition of a 33% stake in TDGL. In particular, Fitch views positively that, as a result of the deal, Troika Dialog has received a US$200 million cash equity injection and a 100% stake in ZAO Standard Bank, leaving the firm with some US$300 million of fresh equity. However, its ratings also take into account the group's reliance on the high risk profile of Russia's capital markets which make for volatile revenues and could cause liquidity problems in case of sharp market downward movements. Market risk is inherent in most of Troika Dialog's operations, and Fitch considers the group's exposure to Russian market risk to be high, although the company has markedly reduced its risk appetite and leverage since the onset of the market crisis in Russia in Q308. Apart from inventories designated for market-making activities and its proprietary trading portfolio, the company's on-balance-sheet exposure to market risk includes a sizeable portfolio of less liquid principal investments. The gains and losses on these are unpredictable, and can positively or negatively impact consolidated earnings and capital. Until mid-2008, TDGL's consolidated performance was strong, with ROAE well above 50% since 2004, but it suffered material mainly market-related losses in Q308, leaving the company just marginally profitable in the financial year ending end-September 2008. Mark- to-market adjustments on principal investments contributed significantly to those losses. Although TDGL returned to profitability in Q408, Fitch believes that its profits are likely to remain challenged throughout the rest of 2009 and potentially 2010 as investment banking revenues remain subdued and brokerage commissions and asset management fees stay low, following asset depreciation and reduced business volumes. The group's funding and liquidity profile is a key rating factor. Troika Dialog relies heavily on market-based funding sources which are typically short-term and subject to early termination and collateral calls. Reliance on short-term funding is further exacerbated by volatility in client funds which may be subject to significant outflows during market stresses. At the same time, Fitch views positively that Troika Dialog has managed to maintain its liquidity throughout this difficult market environment and, following repayment of a US$130 million syndicated loan in July 2009, has no near-term debt maturities. After the US$200 million cash injection from SBG and a significant reduction in the repo business, the company's liquidity has improved and now appears to have returned to historical levels. In a further positive note, Troika Dialog has recently secured a five-year US$150 million unsecured loan facility from the European Bank for Reconstruction and Development which is currently mainly undrawn. Rating actions on ZAO Standard Bank reflect the completion of its acquisition by TDGL. The bank's Long-term IDR is now at the same level as the rating of TDGL, as the agency believes the bank will operate as an integral part of the group. Fitch understands that a significant part of the bank's business has been essentially winding down in recent months, while management practices are being brought into line with Troika Dialog's standards. It is intended that ZAO Standard Bank will be renamed Bank Troika Dialog within six months. Since end-2008, the bank's assets have more than halved, with significant reductions taking place in its derivatives portfolio, commercial and bank loans as well as its securities portfolio. Management has been successful in renegotiating the terms of loan agreements, resulting in a considerable reduction in the loan portfolio maturity profile. On the liabilities side, ZAO Standard Bank returned an unsecured facility to the Central Bank of Russia and repaid a number of bank loans, while clients withdrew about a quarter of corporate deposits. At present, the bank's assets total approximately US$400m. Apart from SBG's 33% stake, TDGL will continue to be controlled by a partnership of approximately 100 managers and employees. The core operating subsidiary of SBG is the Standard Bank of South Africa ('BBB+'/Stable Outlook). The rating actions are: Troika Dialog Group Limited: -- Long-term foreign currency IDR: assigned at 'B+'; Outlook Stable -- Short-term IDR: assigned at 'B' -- Support Rating: assigned at '5' -- Support Rating Floor: assigned at 'No floor' ZAO Standard Bank: -- Long-term foreign currency IDR: downgraded to 'B+' from 'BBB'; removed from Rating Watch Negative (RWN); Stable Outlook -- Short-term IDR: downgraded to 'B' from 'F3'; removed from RWN -- Support Rating: downgraded to '4' from '2'; removed from RWN -- National Long-term Rating: downgraded to 'A-(rus)' from 'AA+(rus)'; removed from RWN; Stable Outlook -- Individual Rating: affirmed at 'D/E'; removed from Rating Watch Evolving STEEL COMPANY: Creditors Must File Claims by October 4 ------------------------------------------------------ Creditors of CJSC Steel Company (TIN 7722299343, PSRN 1037722043402) have until October 4, 2009, to submit proofs of claims to: V. Yershov Insolvency Manager Post User Box 3722 410000 Saratov Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40�50704/09�123-l86). The Debtor can be reached at: CJSC Steel Company Building 2 Storozhevaya Str. 30 111020 Moscow Russia TROIKA DIALOG: Fitch Assigns 'B+' Short-Term Issuer Default Rating ------------------------------------------------------------------ Fitch Ratings has assigned Russia-based Troika Dialog Group Limited a Long-term foreign currency Issuer Default Rating of 'B+' with a Stable Outlook. TDGL, registered in the Cayman Islands, is the ultimate holding company of the Russia-based investment banking group, known as Troika Dialog. The agency has simultaneously downgraded Russia-based ZAO Standard Bank's Long- term foreign currency IDR to 'B+' from 'BBB', whilst assigning a Stable Outlook, and affirmed its Individual Rating at 'D/E', whilst removing it from Rating Watch Evolving, following the completion of its acquisition by TDGL. A full rating breakdown is provided at the end of this comment. The ratings assigned to TDGL reflect Troika Dialog's good investment-banking franchise in Russia, currently low leverage, experienced management team and its good risk management. The ratings also factor in the current and prospective benefits from the company's partnership with Standard Bank Group, following SBG's acquisition of a 33% stake in TDGL. In particular, Fitch views positively that, as a result of the deal, Troika Dialog has received a US$200 million cash equity injection and a 100% stake in ZAO Standard Bank, leaving the firm with some US$300 million of fresh equity. However, its ratings also take into account the group's reliance on the high risk profile of Russia's capital markets which make for volatile revenues and could cause liquidity problems in case of sharp market downward movements. Market risk is inherent in most of Troika Dialog's operations, and Fitch considers the group's exposure to Russian market risk to be high, although the company has markedly reduced its risk appetite and leverage since the onset of the market crisis in Russia in Q308. Apart from inventories designated for market-making activities and its proprietary trading portfolio, the company's on-balance-sheet exposure to market risk includes a sizeable portfolio of less liquid principal investments. The gains and losses on these are unpredictable, and can positively or negatively impact consolidated earnings and capital. Until mid-2008, TDGL's consolidated performance was strong, with ROAE well above 50% since 2004, but it suffered material mainly market-related losses in Q308, leaving the company just marginally profitable in the financial year ending end-September 2008. Mark- to-market adjustments on principal investments contributed significantly to those losses. Although TDGL returned to profitability in Q408, Fitch believes that its profits are likely to remain challenged throughout the rest of 2009 and potentially 2010 as investment banking revenues remain subdued and brokerage commissions and asset management fees stay low, following asset depreciation and reduced business volumes. The group's funding and liquidity profile is a key rating factor. Troika Dialog relies heavily on market-based funding sources which are typically short-term and subject to early termination and collateral calls. Reliance on short-term funding is further exacerbated by volatility in client funds which may be subject to significant outflows during market stresses. At the same time, Fitch views positively that Troika Dialog has managed to maintain its liquidity throughout this difficult market environment and, following repayment of a US$130 million syndicated loan in July 2009, has no near-term debt maturities. After the US$200 million cash injection from SBG and a significant reduction in the repo business, the company's liquidity has improved and now appears to have returned to historical levels. In a further positive note, Troika Dialog has recently secured a five-year US$150 million unsecured loan facility from the European Bank for Reconstruction and Development which is currently mainly undrawn. Rating actions on ZAO Standard Bank reflect the completion of its acquisition by TDGL. The bank's Long-term IDR is now at the same level as the rating of TDGL, as the agency believes the bank will operate as an integral part of the group. Fitch understands that a significant part of the bank's business has been essentially winding down in recent months, while management practices are being brought into line with Troika Dialog's standards. It is intended that ZAO Standard Bank will be renamed Bank Troika Dialog within six months. Since end-2008, the bank's assets have more than halved, with significant reductions taking place in its derivatives portfolio, commercial and bank loans as well as its securities portfolio. Management has been successful in renegotiating the terms of loan agreements, resulting in a considerable reduction in the loan portfolio maturity profile. On the liabilities side, ZAO Standard Bank returned an unsecured facility to the Central Bank of Russia and repaid a number of bank loans, while clients withdrew about a quarter of corporate deposits. At present, the bank's assets total approximately US$400m. Apart from SBG's 33% stake, TDGL will continue to be controlled by a partnership of approximately 100 managers and employees. The core operating subsidiary of SBG is the Standard Bank of South Africa ('BBB+'/Stable Outlook). The rating actions are: Troika Dialog Group Limited: -- Long-term foreign currency IDR: assigned at 'B+'; Outlook Stable -- Short-term IDR: assigned at 'B' -- Support Rating: assigned at '5' -- Support Rating Floor: assigned at 'No floor' ZAO Standard Bank: -- Long-term foreign currency IDR: downgraded to 'B+' from 'BBB'; removed from Rating Watch Negative (RWN); Stable Outlook -- Short-term IDR: downgraded to 'B' from 'F3'; removed from RWN -- Support Rating: downgraded to '4' from '2'; removed from RWN -- National Long-term Rating: downgraded to 'A-(rus)' from 'AA+(rus)'; removed from RWN; Stable Outlook -- Individual Rating: affirmed at 'D/E'; removed from Rating Watch Evolving TUMENSKIY REGION: Creditors Must File Claims by October 4 --------------------------------------------------------- Creditors of LLC Tumenskiy Region (TIN 7203135951, PSRN 1037200604506) (Construction) have until October 4, 2009, to submit proofs of claims to: Ye. Martyanova Temporary Insolvency Manager Melnikayte Str. 106-253 265026 Tumen Russia The Arbitration Court of Tumen will convene at 9:40 a.m. on December 3, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?70�4728/2009. The Debtor can be reached at: LLC Tumenskiy Region Sovetskaya Str.61 Tumen Russia ZYRYANSKIY BUTTER: Creditors Must File Claims by October 4 ---------------------------------------------------------- Creditors of CJSC Zyryanskiy Butter-Making Plant (TIN 7005006231) have until October 4, 2009, to submit proofs of claims to: M. Churaev Temporary Insolvency Manager Shkolnaya Str. 11 Plotnikovo 636210 Tomskaya Russia The Arbitration Court of Tomskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?67�5253/09. The Debtor can be reached at: CJSC Zyryanskiy Butter-Making Plant Lenina Str. 124 Zyryanskoe Zyryaninskiy Tomskaya Russia ===================== S W I T Z E R L A N D ===================== MAMMUTRANS LLC: Claims Filing Deadline is December 28 ----------------------------------------------------- Creditors of Mammutrans LLC are requested to file their proofs of claim by December 28, 2009, to: Mammutrans LLC Pumpwerkstrasse 15 8105 Regensdorf Switzerland The company is currently undergoing liquidation in Regensdorf. The decision about liquidation was accepted at a shareholders' meeting held on January 26, 2009. UBS AG: Wants to Exit Swiss Government's Bad Bank Scheme, CEO Says ------------------------------------------------------------------ Patrick Jenkins and Megan Murphy and Haig Simonian at The Financial Times report that UBS AG aims to leave the Swiss government's "bad bank" scheme and to return to health in a year. Oswald Gruebel, chief executive of UBS, told FT in an interview, the bad bank scheme, under which UBS pays for protection against big losses on toxic assets, "is very expensive". The FT recalls the Swiss government last month sold its 9% stake in UBS but US$23.5 billion of UBS assets, carved out to lessen risk at the group, remain in the government's bad bank. "We have to make an offer to buy back those assets," the FT quoted Mr. Gruebel as saying. According to the FT, given the recent recovery in credit markets, UBS is confident it could take the assets back on its balance sheet, but concedes it may not be feasible to enact its plan before the second half of 2010. Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. As reported in the Troubled Company Reporter-Europe, UBS has amassed more than US$53 billion in writedowns and losses since the credit crisis began. The bank expects to post a loss in the second quarter of 2009. The bank's net loss for full-year 2008 widened to CHF19.697 billion from of CHF5.247 million in the prior year. Net losses from continuing operations totaled CHF19.327 billion, compared with losses of CHF5.111 billion in the prior year. UBS attributed the losses to negative revenues in its fixed income, currencies and commodities (FICC) area. For the 2008 fourth quarter, UBS incurred a net loss of CHF8.100 billion, down from a net profit of CHF296 million. Net loss from continuing operations was CHF7.997 billion compared with a profit of CHF433 million. The Investment Bank recorded a pre-tax loss of CHF7.483 billion, compared with a pre-tax loss of CHF2.748 billion in the prior quarter. This result was primarily due to trading losses, losses on exposures to monolines and impairment charges taken against leveraged finance commitments. An own credit charge of CHF1.616 billion was recorded by the Investment Bank in fourth quarter 2008, mainly due to redemptions and repurchases of UBS debt during this period. UBS said it will further reduce its headcount to 15,000 by the end of the year. UBS's personnel numbers reduced to 77,783 on December 31, 2008, down by 1,782 from September 30, 2008, with most staff reductions at its investment banking unit. ============= U K R A I N E ============= BUREAU-OFERTA LLC: Creditors Must File Claims by October 4 ---------------------------------------------------------- Creditors of LLC Bureau-Oferta (code EDRPOU 31521538) have until October 4, 2009, to submit proofs of claim to: O. Slavnaya Insolvency Manager Fruktovaya Str. 67 Makeyevka Donetsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 12, 2009. The case is docketed under Case No. 43/312. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Bureau-Oferta Avtozavodskaya Str. 18 04074 Kiev Ukraine IKAR LLC: Creditors Must File Claims by October 4 ------------------------------------------------- Creditors of LLC Ikar (code EDRPOU 13844722) have until October 4, 2009, to submit proofs of claim to M. Tsurika, the company's insolvency manager. The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on March 19, 2009. The case is docketed under Case No. 5/82/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya Str. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Ikar Shevchenko Str. 59 54000 Nikolayev Ukraine LEMESCHIKHA AGRICULTURAL: Creditors Must File Claims by October 3 ----------------------------------------------------------------- Creditors of Agricultural OJSC Lemeschikha (code EDRPOU 24412996) have until October 3, 2009, to submit proofs of claim to: T. Davidiuk Insolvency Manager Chapayev Lane 51 Zhashkov 19200 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company on August 11, 2009. The case is docketed under Case No. 10/1930. The Court is located at: The Economic Court of Cherkassy Shevchenko Blvd. 307 18004 Cherkassy Ukraine NAFTOGAZ NJSC: Moody's Cuts Probability of Default Rating to 'Ca' ----------------------------------------------------------------- Moody's Investors Service has downgraded the probability of default rating of NJSC Naftogaz of Ukraine to Ca from Caa2. Naftogaz's foreign currency corporate family and debt ratings remain unchanged, at Caa2. The ratings remain under review, but Moody's has changed the direction to uncertain from possible downgrade. The rating action reflects the 24 September 2009 restructuring offer by Naftogaz, in which Naftogaz invites the holders of the company's US$500 million Loan Participation Notes due September 30, 2009 to consent to their restructuring. According to the restructuring offer, the Notes would be exchanged for new notes with a 5-year maturity, 9.5% coupon p.a. The new notes would be backed by an unconditional and irrevocable sovereign guarantee. Naftogaz anticipates finalizing the Notes' restructuring by October 19, 2009. Thus, the Ca PDR reflects Moody's expectation that Naftogaz will default on the Notes' repayment at maturity on September 30, 2009. The decision to retain a Caa2 rating on the bonds reflects Moody's anticipation of a high recovery following default. The decision to change the direction of the rating review to direction uncertain reflects the possibility that the holders of the Notes might not agree with the current restructuring offer, which could potentially result in a lengthy court settlement and lower recovery prospects for bondholders. Furthermore, the restructuring offer references all of Naftogaz's short- and medium-term financial debt, to which the Notes' cross-default clause applies, thus calling for restructuring of around US$1.7 billion of total debt. This further contributes to the uncertainty over the overall process and recovery prospects. Moody's previous rating action on Naftogaz was implemented on August 7, 2009, when Moody's downgraded the company's ratings to Caa2 from Caa1 and placed them on review for possible downgrade, reflecting the possible restructuring of Naftogaz's debt. Headquartered in Kiev, Ukraine, Naftogaz is an integrated hydrocarbon company with operations in oil and gas exploration and production, domestic and international transportation, storage and supply. In 2008, the company generated a UAH2.0 billion (US$0.38 billion) net loss on total revenues of UAH53.1billion (US$10.1 billion). SILUR OJSC: Creditors Must File Claims by October 4 ---------------------------------------------------- Creditors of OJSC Silur (code EDRPOU 00191046) have until October 4, 2009 to submit proofs of claim to: E. Kozarenko Insolvency Manager Office 29 Zubarev Str. 37 61172 Kharkov Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company on Sept. 2, 2009. The case is docketed under Case No. 42/45b. The Court is located at: The Economic Court of Donetsk Artem Str. 157 Donetsk Ukraine The Debtor can be reached at: OJSC Silur Filatov Str. 9 Khartsizsk 86709 Donetsk Ukraine STG LLC: Creditors Must File Claims by October 3 ------------------------------------------------ Creditors of LLC Business Group STG (code EDRPOU 26302224) have until October 3, 2009 to submit proofs of claim to: A. Kiredjan Insolvency Manager Office 13 Gogol Str. 9 65026 Odessa Ukraine The Economic Court of Odessa region commenced bankruptcy proceedings against the company on August 25, 2009. The case is docketed under Case No. 2/88-09-3912. The Court is located at: The Economic Court of Odessa Shevchenko Ave. 29 65032 Odessa Ukraine The Debtor can be reached at: LLC Business Group STG Shevchenko Ave. 29 65032 Odessa Ukraine =========================== U N I T E D K I N G D O M =========================== AW SINCLAIR: Put Into Administration; 97 Jobs at Risk ----------------------------------------------------- Construction News reports that AW Sinclair and Sons Ltd. has gone into administration, putting 97 jobs at risk. According to the report, parent company Quibell Group, which is based in Hull, said the business was "no longer considered viable". PricewaterhouseCoopers has been appointed as administrator, the report discloses. Based in North Yorkshire, AW Sinclair and Sons Ltd. -- http://www.quibell.co.uk/-- is a construction firm. The Quibell Group acquired the company in 1989. CLARIS LTD: Moody's Lifts Rating on Series 97/2007 Notes to 'Ba2' ----------------------------------------------------------------- Moody's Investors Service has taken rating actions on notes issued by Claris Limited Series 97/2007, a collateralized debt obligation transaction referencing a managed portfolio of corporate entities. Issuer: Claris Limited -- Series 97/2007 Tranche 1 EUR50,000,000 Drachenburg Floating Rate Credit Linked Notes due 2015, Downgraded to B3; previously on March 27, 2009 Upgraded to Ba2 Moody's explained that the rating action taken is the result of the deterioration of the credit quality of the reference portfolio. The 10 year weighted average rating factor of the portfolio, not adjusted with forward looking measures, has deteriorated from 342 from the last rating action to 472, equivalent to an average rating of the current portfolio of Baa3. The reference portfolio includes an exposure to CIT Group, Inc. and Ambac Assurance Corporation, which have both experienced substantial credit migration in the past few months, and are now rated Ca and Caa2, respectively. Since the last rating action on the transaction, the subordination of the rated tranche has been reduced due to credit events on Syncora Guarantee Inc. (formerly, XL Capital Assurance Inc.) and Bradford & Bingley plc in April and June, respectively. These credit events lead to a decrease of approximately 0.87% of the subordination of the series. The Banking, Finance, Insurance and Real Estate industry sectors are the most represented, weighting 42%, 9.8%, 18.5% and 3.3%, respectively, of the portfolio notional. This transaction was previously upgraded from Caa2 after being restructured in March in which the subordination was amended and increased. Despite this, the portfolio has since suffered losses due to credits events and substitutions. Moody's monitors this transaction using primarily the methodology and its supplements for CSO as described in Moody's Rating Methodology papers: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (September 2009) In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of rating committee considerations. These qualitative factors include, among others, the structural protections in each transaction, the recent deal performance in the current market environment, the strength of the legal framework as well as specific documentation features, and selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. EMI GROUP: Citigroup May Push for Bankruptcy to Recover Loan ------------------------------------------------------------ Josh Kosman at The New York Post reports Citigroup Inc., which is seeking to reduce the size of its balance sheet, may force EMI Group Ltd. into bankruptcy. The New York Post recalls in 2007, Guy Hands's Terra Firma Capital used Citigroup to underwrite its US$4.73 billion buyout of EMI. According to the New York Post, Citigroup, which is unable to resell the loan, now holds the entire amount on its balance sheet. As reported in the Troubled Company Reporter-Europe on Aug. 18, 2009, The Wall Street Journal said EMI Music isn't generating enough profit to comply with a GBP950 million loan from Citigroup. According to the WSJ, people familiar with the situation said EMI Music will need cash injections over the next eight months to avoid defaulting on the loan -- and it is unclear how much more cash Mr. Hands is willing to invest. The WSJ said if Mr. Hands, who has injected about GBP80 million into EMI Music through its parent company, Maltby Capital Ltd., doesn't come up with the money, Citigroup could seek to take control of the business and sell it. The WSJ disclosed the Citigroup loan requires increases in EMI Music's earnings before interest, tax, depreciation, and amortization relative to the size of its debt, the Journal discloses. According to the WSJ, since September, EMI Music has been subjected to three "covenant tests" to see if it meets the ratio -- and failed each one. On July 31, 2009, the Troubled Company Reporter-Europe, citing the Financial Times, reported that investors in Terra Firma backed plans for the private equity firm to inject GBP300 million of equity into EMI as part of a potential refinancing of the music group's GBP2.6 billion debts. London-based EMI Group Limited -- http://www.emigroup.com/-- houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints Capitol Music Group, EMI Records, and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. Private equity firm Terra Firma bought EMI for US$4.9 billion in 2007. EUROPEAN PRIME: S&P Downgrades Rating on Class D Notes to 'B-' -------------------------------------------------------------- Standard & Poor's Rating Services lowered and removed from CreditWatch negative its credit rating on the class D notes issued by European Prime Real Estate No. 1 PLC, due to increased concerns about a principal loss on the Halton Lea Shopping Centre loan. At the same time, S&P affirmed and removed from CreditWatch negative the class A to C notes. Five loans secured by U.K. commercial properties back the notes. The properties comprise three shopping centers and two offices, representing 58% and 42% by market value, respectively, according to the July 2009 servicer report. The Halton Lea Shopping Centre loan was transferred in special servicing in July 2008 because of a breach of the projected whole loan interest-coverage ratio covenant. The loan was accelerated a few days ago due to the parties not agreeing a workout strategy. The performance of the collateral has declined since closing in 2005. The property is currently suffering from a high vacancy rate (14.8%) and has been subject to material market value declines, primarily due to significant yield shift. The special servicer reported the property value as GBP27.5 million in August 2009. The senior loan outstanding balance is GBP34.6 million. In light of these factors, S&P considers that the risk of a principal loss at the transaction level has continued to increase. The performance of the four other loans remain in line with S&P's current expectations. The refinancing of these loans might be challenged by the sharp increase in capitalization rates and limited availability of refinancing. S&P believes extended workouts for some loans may minimize or, perhaps, eliminate, losses to noteholders. Special servicing fees continue to affect the class D notes but the current amount falls under S&P's minor shortfall approach--as a result S&P has not lowered the rating on these notes to 'D' at this time. Ratings List European Prime Real Estate No. 1 PLC GBP347.758 Million Commercial Mortgage-Backed Floating-Rate Notes Rating Lowered and Removed From CreditWatch Negative Class To From ----- -- ---- D B- BB/Watch Neg Ratings Affirmed and Removed From CreditWatch Negative Class To From ----- -- ---- A AAA AAA/Watch Neg B AA AA/Watch Neg C BBB BBB/Watch Neg FARRINGDON MORTGAGES: Fitch Cuts Rating on Class B2a Notes to 'B' ----------------------------------------------------------------- Fitch Ratings has upgraded three, downgraded one and affirmed eight tranches of the Farringdon Mortgages Transactions of UK non- conforming transactions. The rating actions are: Farringdon Mortgages No. 1 Plc (Farringdon 1): -- Class A2a (ISIN XS0211295778) affirmed at 'AAA'; Outlook Stable; assigned Loss Severity Rating of 'LS-2' -- Class A2a detachable coupons (ISIN XS0211296313) affirmed at 'AAA'; Outlook Stable -- Class M2a (ISIN XS0211300362) upgraded to 'AA' from 'A'; Outlook Positive; assigned Loss Severity Rating of 'LS-1' -- Class B1a (ISIN XS0211301766) upgraded to 'A' from 'BBB'; Outlook Positive; assigned Loss Severity Rating of 'LS-2' -- Class B2a (ISIN XS0211303382) affirmed at 'BB-'; Outlook Positive; assigned Loss Severity Rating of 'LS-2' -- MERCS (ISIN XS0211306641) affirmed at 'AAA'; Outlook Stable Farringdon Mortgages No. 1 Plc (Farringdon 2): -- Class A2a (ISIN XS0228709985) affirmed at 'AAA'; Outlook Stable; assigned Loss Severity Rating of 'LS-1' -- Class A2a DAC (ISIN XS0228710561) affirmed at 'AAA'; Outlook Stable; -- Class M2a (ISIN XS0228711882) upgraded to 'AA' from 'A'; Outlook Positive; assigned Loss Severity Rating of 'LS-1' -- Class B1a (ISIN XS0228712260) affirmed at 'BBB'; Outlook revised to Positive from Stable; assigned Loss Severity Rating of 'LS-2'; -- Class B2a (ISIN XS0228712930) downgraded to 'B' from 'BB'; Outlook Stable; assigned Loss Severity Rating of 'LS-2' -- MERCS (ISIN XS0228713235) affirmed at 'AAA'; Outlook Stable The upgrades reflect the significant credit enhancement growth since closing as a result of considerably high constant prepayment rates. On the other hand, losses of both transactions have, in several of the last four quarters, exceeded the available excess spread resulting in reserve fund draws. A declining RF affects mainly the CE of the most junior tranche of the transactions. This prompted the affirmation of the Class B2a of Farringdon 1 -- despite its significant CE growth -- and the downgrade of the Class B2a of Farringdon 2. The dissimilar rating actions reflect the relatively worse performance of the latter transaction's delinquencies, cumulative losses and weight average loss severity. Until October 2008 the maximum period losses reached by Farringdon 1 had been 0.56%, before worsening to 2.19% and 1.14% in January and April 2009, respectively. This level was above the available XS causing the RF to be drawn. On the last reported quarter, in July 2009, period losses of Farringdon 1 narrowed to 0.88%. Similarly, Farringdon 2 Period losses worsened to 0.71%, 1.05% and 1.51% in October 2008, January and July 2009, respectively, from 0.53% in July 2008, and also resulted in RF draws. In July 2009 period losses descended to 0.54%. Widening losses are a result of more properties being sold and higher WALS. Period WALS reached a maximum of 49.11% and 59.61% in April 2009 for Farringdon 1 and 2, respectively. The higher Period WALS are a combination of declining house prices and the long time lapse before properties are sold, which increases the cost of carry. The loan-by-loan level analysis shows that some of the loans in repossession have a high percentage of arrears due and not paid, suggesting that future loss severity levels are likely to remain high and possibly result in further RF reductions. In addition, because of the small size of the remaining pool of the transactions, the available XS may be insufficient to absorb the loss of a large property sale. The loan-by-loan data at July 2009 shows that out of the repossessed loans, 81.45% of the Farringdon 1 pool has an LTV between 80% and 90%. Farringdon 2 has 84.92% of its repossessed loans with an LTV higher than 80%, and 18.88% of the transaction repossessed loans above 90%. Farringdon 1 loans were mainly originated in 2004, while the vast majority of Farringdon 2 loans in 2005. Therefore, both pools still have some house price appreciation built in, but overall Farringdon 1 loans have more house price appreciation and a lower LTV distribution than Farringdon 2. As a result, the WALS of the latter deal are expected to be higher. FARRINGDON MORTGAGES: S&P Affirms Ratings on Class B2a Notes at BB ------------------------------------------------------------------ Standard & Poor's Ratings Services raised its credit ratings on the class B1a notes issued by Farringdon Mortgages No. 1 PLC and the class M2a notes issued by Farringdon Mortgages No. 2 PLC. At the same time, S&P affirmed all other classes of notes in these transactions. The upgrades are due to increases in credit enhancement in the transactions, which have paid down as the more senior classes of notes have redeemed. In S&P's opinion, arrears are high in both transactions but this is offset by the increase in credit enhancement and high collection rates (interest received as a percentage of interest due). All loans in both transactions are paying a floating rate of interest linked to three-month LIBOR. S&P believes borrowers have been helped through lower monthly payments as LIBOR has fallen throughout 2009. This has led to improvements in collection rates in recent quarters. S&P will continue to monitor these transactions closely. Both transactions have relatively low pool factors. Therefore, as borrowers continue to refinance, S&P anticipates that the risk of adverse selection will increase. Farringdon Mortgages No. 1 and Farringdon Mortgages No. 2 are U.K. nonconforming residential mortgage-backed securities transactions that closed in February 2005 and September 2005, respectively. Ratings List Farringdon Mortgages No. 1 PLC GBP125 Million Mortgage-Backed Floating-Rate Notes Rating Raised Rating ------ Class To From ----- -- ---- B1a BBB+ BBB Ratings Affirmed Class Rating ----- ------ A2a AAA A2a DAC AAA M2a AA B2a BB MERCs AAA Farringdon Mortgages No. 2 PLC GBP200 Million Mortgage-Backed Floating-Rate Notes Rating Raised Rating ------ Class To From ----- -- ---- M2a A+ A Ratings Affirmed Class Rating ----- ------ A2a AAA A2a DAC AAA B1a BBB B2a BB MERCs AAA GEMINI PLC: S&P Downgrades Rating on Class E Notes to 'B-' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on all classes of notes issued by GEMINI (ECLIPSE 2006-3) PLC. At the same time, S&P removed all the notes from CreditWatch. GEMINI is a single-borrower secured-loan transaction backed by a portfolio of average-quality retail, office, warehouse/industrial, and leisure properties in England and Scotland. S&P initially rated this interest-only transaction in October 2006. At that time, it included 36 properties and GBP918.9 million in notes. Two assets, originally listed separately, are now reported by the servicer as a single property, and one property has been sold since issuance. The notes have paid down to a current balance of GBP850.4 million. The deal has a long-dated senior interest rate swap which, in the current interest rate environment, results in significant potential break costs. Payments and break costs associated with both the senior and junior loan interest rate hedges rank senior to payments to noteholders. The underlying properties have suffered in the current economic environment, with operating income adversely affected by rising vacancies. Softening rental markets and tenant rollover, combined with increased exposure to tenant insolvency, have created a drag on the assets' performance. Rising vacancies have reduced rental income and increasing void costs have added to stress on the net cash flows. The secondary nature of many of the underlying assets and the exposure to retail and industrial properties make this portfolio susceptible to continued occupational weakness. The most recent quarterly report indicated that the interest coverage ratio has fallen to 1.01x. Factoring in the junior loan swap payments ranking senior to loan payments reduces the actual ICR to 0.94x. The issuer has most recently paid shortfalls by using excess funds available in various accounts. The most recent valuation indicates a portfolio value of GBP801.4 million. This is a decline in the value at issuance and results in a securitized senior loan-to-value ratio of 106.1%. For covenant testing, LTV calculations include the mark-to-market senior swap break cost. Estimated break costs have fluctuated considerably, but using the most recent mark-to-market break cost estimate from the servicer increases the LTV ratio to 120%. S&P expects continued market deterioration to preclude value recovery in the near term, and any projected recovery in value to be hampered by the shift in investor preference away from the type of secondary assets that characterize the GEMINI portfolio. The loan is in special servicing as a result of a breach in the LTV ratio covenant of 80%. The special servicer, CB Richard Ellis Loan Servicing Ltd., has recently issued a report to noteholders detailing an asset management strategy designed to avoid default and enforcement with the purpose of increasing the revenue generated by the underlying properties. The special servicer has indicated that near-term deficiencies in coverage are likely to occur as a result both of recent declines in operating income and upcoming one-off required payments. A GBP64 million liquidity facility is available to bridge interest shortfalls to noteholders. In light of the current economic environment, the continuing difficulties for tenants, and the softening rental market, the characteristics of the transaction have led us to lower S&P's ratings on all the notes to reflect a more appropriate level of creditworthiness. Ratings List Ratings Lowered and Removed From CreditWatch Negative GEMINI (ECLIPSE 2006-3) PLC GBP918.862 Million Commercial Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A BBB- AAA/Watch Neg B BB+ AAA/Watch Neg C BB- AA/Watch Neg D B BBB/Watch Neg E B- BB/Watch Neg GEMMA GROUP: Assets Sold to Bombardier Transportation ----------------------------------------------------- Julie Palmer and Antony Fanshawe, partners at Begbies Traynor based in Southampton, Portsmouth, Bournemouth and Salisbury, announced that the business and assets of Gemma Group, comprising the trading companies, Whiteley Electronics Limited and Gemma Electronics Limited, have been sold to Bombardier Transportation UK Limited. Whiteley Electronics trading from Mansfield, Notts is involved in the fabrication and installation of rail and bus passenger information systems. Gemma Electronics, based in Cosham, Hants is involved in the manufacture of printed circuit boards for Whiteley and a number of other blue-chip customers. The Group suffered from losses in 2006 and 2007, which has led to severe and increasing cash constraints in the last 18 months, despite a healthy forward order book. This position has been exacerbated by the current economic downturn. The Group entered Administration on July 14, 2009. The sale preserves the vast majority of the jobs for 150 employees. Ms. Palmer commented "I am delighted to achieve a successful going concern sale. Whiteley Electronics is a long standing and major employer in the Mansfield area having traded since 1930. It has been a difficult period for the workforce of both companies. I am grateful for their support during the Administration and we have demonstrated that even in this difficult climate there are still buyers there for good businesses." HARGREAVES SERVICES: Secures GBP115 Mln Debt Package ---------------------------------------------------- Rapidly expanding Durham-based Hargreaves Services plc has secured funding in one of the region's largest corporate deals of the past 12 months. Hargreaves Group is a supplier of products and services to the energy, mineral and waste sectors. During the past few years, the GBP503 million turnover business has grown both by acquisition and organically, and has now secured a new debt package to allow for further growth over the coming year. Sourced from a "club" of five banks, led by existing bankers Royal Bank of Scotland, the deal that was structured and negotiated by the BTG McInnes Corporate Finance team in Newcastle will deliver a GBP115 million debt refinancing facility. Lloyds TSB Corporate Markets, Santander, HSBC and Yorkshire Bank have all joined RBS in providing the facilities, demonstrating the renewed corporate lending that is starting to be seen to following a period of virtual standstill after the collapse of the banking markets in September 2008. Commenting on the refinancing facility, Iain Cockburn, Hargreaves' Finance Director, said: "We are pleased to have new finance arrangements in place. Given the current economic climate, we believe the securing of this facility is testament to the strength of the business and its prospects for further progress." Established in 1994 as a specialist bulk haulier, the Hargreaves Group has grown, both organically and by acquisition, into a major force in the supply, movement and management of mineral resources and the provision of support services to the energy and waste industries. "Despite the unprecedented economic conditions this deal is evidence that good quality businesses with strong management teams are still able to secure funding," said Shawn Bone, partner at BTG McInnes Corporate Finance. "Hargreaves is a quality North East business and there was a great deal of interest from the banking sector to support its expansion. It is now well positioned to continue its successful track record of growth," Mr. Bone added. The Group employs 2,300 staff and operates through four divisions, production, energy & commodities, transport and industrial services. The Hargreaves Group operates over 400 vehicles as well as other sub-contracted haulage stock around the UK and owns numerous collieries, factories, transport depots and manufacturing plants across the country. Other advisers involved in the deal included KPMG who provided transaction support services, Walker Morris who advised the company on legal matters and Eversheds who advised the banking group. KINGSTON MANAGEMENT: In Administration; Begbies Traynor Appointed ----------------------------------------------------------------- Kingston Management (Guernsey) Limited was placed in to Administration by the Royal Court of Guernsey on September 8. Alan Roberts and Adrian Rabet of Begbies Traynor were appointed as Joint Administrators. The Company, based in Hirzel Court, St. Peter Port, currently employs seven people. The staff will continue to work for the company to facilitate the transfer of the client portfolio to other management companies which is expected to take several months. Commenting on the appointment, Joint Administrator Alan Roberts said: "Protection and improvement of client service is a key requirement of this process. The Regulator has been consulted at all stages of the process and we look forward to a successful outcome of the portfolio transfer in coming weeks." LEHMAN BROTHERS: World's Top Banks File Billions in Claims ---------------------------------------------------------- Wilmington Trust Company, as indenture trustee for noteholders, Pricewaterhouse Coopers as administrators of Lehman Brothers International (Europe) and other European units of Lehman, Bundesverbank Deuscher Banken E.V., Lehman Brothers Japan, and Deutsche Bundesbank, have filed the largest claims by the Sept. 22 bar date for filing proofs of claim in the Chapter 11 cases of Lehman Brothers Holdings Inc. and its U.S. units. According to reports by Michael J. Moore and Heather Smith: * the U.K.'s biggest financial institutions, including Barclays Plc and HSBC Holdings Plc, filed more than US$3.2 billion of claims. arclays, which purchased Lehman's headquarters and North American brokerage last year, filed claims totaling more than US$2.5 billion. HSBC, Britain's biggest bank, is seeking to recover more than US$440 million. * Japan's biggest financial institutions, including Nomura Holdings Inc. and Mizuho Financial Group Inc., filed more than US$4 billion of claims. Nomura, Japan's biggest brokerage, filed claims totaling more than US$2 billion. Mitsubishi UFJ Financial Group Inc., the largest Japanese bank, is seeking to recover more than US$510 million. Mizuho filed claims for at least US$890 million. * the U.S.'s eight biggest banks, including U.S. Bancorp and Bank of America Corp., filed more than US$20.8 billion of claims. U.S. Bancorp, acting as a trustee, filed claims of more than US$12.4 billion. Bank of America, the biggest U.S. bank by assets, is seeking to recover more than US$5.2 billion. Morgan Stanley, which converted into a bank holding company less than a week after Lehman collapsed, is seeking at least US$3 billion. * France's biggest financial institutions, including BNP Paribas SA and Societe Generale SA, filed more than US$3.3 billion worth of claims against LBHI. BNP Paribas, France's largest bank, said it's owed about US$1.3 billion. Societe Generale, France's third biggest lender, filed claims totaling more than US$1.2 billion. According to the list posted by Epiq Bankruptcy Solutions, the claims agent, parties who have filed claims in excess of US$500 million against LBHI include: Claim No. Claimant Claim Amount --------- -------- ------------ 10082 Wilmington Trust, as Indenture Trustee US$48,779,932,734 17894,17538 Bundesverband Deutscher Banken E.V. US$25,725,484,071 21530 LB International (Europe) US$23,178,197,173 21281 Lehman Brothers Japan US$21,803,510,131 21527 LB International (Europe) US$11,834,607,665 19951 Deutsche Bundesbank US$10,360,901,745 23568 LB Re Financing No. Limited US$6,761,074,231 22719, 22605 Citibank, N.A., as trustee US$5,041,254,234 23465-23468 U.S. Bank N.A. US$5,000,000,000 14826 Heron Quays (HQ2) T1 Limited US$4,280,970,000 22766, 22773 Wilmington Trust, as Trustee US$4,162,459,849 22774, 22604 Citibank, N.A., as trustee US$3,386,836,805 27994, 27995 Fenway Capital, LLC US$3,012,139,644 21525 LB SF No. Ltd US$2,875,036,778 20137 Bank of America, N.A. US$2,857,969,396 21529 LB International (Europe) US$2,807,719,562 27141 Deutsche Bank AG US$2,494,729,944 20105 Bank of America N.A. US$2,349,153,939 23463 Pamela Weder, VP US$5,000,030,321 1612 Lehman Brothers Bank, FSB US$2,192,000,000 15079, 15078 Office of Thrift Supervision US$2,192,000,000 20492 U.S. Bank N.A. US$2,121,209,098 21798 Bank of New York Mellon, as indenture trustee US$2,051,666,667 21800 Bank of New York Mellon, as indenture trustee US$1,933,352,667 27638 COMMERZBANK AG US$1,790,927,595 21802 Bank of New York Mellon, 20504, 2055 U.S. Bank N.A. US$1,742,758,407 20829 Pacific International Finance US$1,600,000,000 as indenture trustee US$1,521,656,250 20149 Merrill Lynch International US$1,536,014,058 28103, 28099 Goldman Sachs Bank USA, as successor US$1,519,683,047 21799 Bank of New York Mellon, as indenture trustee US$1,516,614,583 18074 Barclays Bank PLC US$1,336,813,993 21797 Bank Of New York Mellon, as indenture trustee US$1,264,375,000 18076 Barclays Bank PLC US$1,125,806,565 11037 NY State Department of Taxation and Finance US$1,217,149,064 27947, 27946 7th Avenue Inc. US$1,200,000,000 27634 COMMERZBANK AG US$1,136,013,393 20506, 20507 U.S. Bank N.A. US$1,072,249,503 11307, 11306 Morgan Stanley Capital Group US$1,019,588,693 24366 CTLA Trustee Services Admin. US$1,000,000,000 22721, 22606 Citibank, N.A., as trustee US$999,992,177 28105, 28104 Goldman Sachs Bank USA, as successor US$999,304,164 20148 Merrill Lynch International US$987,098,710 22639, 22775 Citibank, N.A., as trustee US$927,988,327 14971 BNP Paribas US$895,971,755 3813 Boise Land & Timber II, LLC US$833,781,693 17120 OMX Timber Finance Investments II, LLC US$844,896,060 1439 OMX Timber Finance Investments II, LLC US$833,171,475 27635 COMMERZBANK AG US$820,730,825 17755 Deutsche Bank AG, London US$801,478,085 21517 Storm Funding US$795,799,364 21693, 21685 Royal Bank of Scotland PLC US$791,596,534 17321, 17319 Primary Fund of the Reserve Fund US$785,000,000 21801 Bank of New York Mellon, as indenture trustee US$766,500,000 17199, 17198 Nomura International PLC US$722,417,698 17247 Danske Bank A/S London Branch US$699,657,334 14664 GLG European Long-Short Fund US$648,992,015 5576, 4727 New York City Dept. of Finance US$626,999,222 15649 Abu Dhabi Investment Authority US$609,695,486 21285 Lehman Brothers Japan Inc. US$562,563,676 12145 Chang Hwa Commercial Bank, Los Ang US$511,720,568 Wilmington Trust, as successor indenture trustee to Citibank, N.A., filed a US$48.8 billion claim against LBHI, on behalf of holders of various unsecured senior notes due to mature 2009 to 2037 issued by Lehman. WTC says that although the total claim is undetermined at this time, it says the total claim falls within a range of US$49.2 billion, as provided by Citibank, to US$73.1 billion, as provided by the Debtor. Heron Quays (HQ2) T1 Limited and Heron Quays (HQ2) T2 Limited filed a US$4.28 billion claim. Heron Quays Lehman owes it money for leases at former headquarters at Canary Wharf, in London. The N.Y. State Department of Taxation made claim for US$1.2 billion in taxes, interest and penalties from Lehman Brothers Holdings Inc. The state is seeking payment for tax bills dating to 1994, according to the proof of claim. New York-based Lehman owes US$393 million in tax and interest for the 2003 tax year and US$387.9 million for 2007. New York state said that US$1.09 billion constitutes as an "unsecured priority" claim, while the remaining US$131 million constitute as a "general unsecured" claim. Lehman Brothers' creditors filed more than 16,000 claims against the failed investment bank before the Sept. 22 deadline. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LOGOS TECHNOLOGIES: Business Sold in Pre-Pack Deal -------------------------------------------------- The positive aspects of properly planned and executed pre-pack administrations -- and their ability to bring service sector businesses back from the brink while giving a decent return to stakeholders -- are being highlighted by Southampton insolvency practitioner Antony Fanshawe following the successful sale of a Lymington-based specialist IT firm to an American company. Formed in 1995, the Logos Technologies business specializes in electronic data capture systems for the pharmaceutical industry. Antony Fanshawe, regional partner with Begbies Traynor, was initially appointed to assist with negotiations between shareholders regarding the potential sale of the business. It soon become apparent that the company was technically insolvent but, said Mr. Fanshawe, placing it into formal administration and then marketing the business for sale would have sounded the death knell in terms of achieving the best deal for creditors. "Once word of administration gets out it becomes virtually impossible to retain the staff and customers necessary to keep a software developer like this in business. Value disappears very fast indeed," Mr. Fanshawe explained. "In these situations you must sell quickly or not at all. The pre-pack process facilitates this by allowing terms of a sale to be negotiated prior to the company being placed in administration. The disposal can then take place virtually immediately. The trick is to get the best deal for stakeholders whilst keeping the process under wraps." With two potential purchasers in the frame Mr. Fanshawe was keen to make the process as inclusive as possible and the opinions of all stakeholders were carefully considered as an important factor in the administrators' decision-making process before the American company, Omnicomm Systems Inc was selected as the preferred bidder. The business is now trading successfully as Omnicomm Limited, benefiting from the intellectual property and global licensing agreements of its new parent company. Mr. Fanshawe concluded: "Pre-packs are an excellent tool for bringing about the sale of a business where the real value lies in the employees, forward contracts or intellectual property. I hope that the experience of Logos Technologies will help the process to be seen as an important business recovery tool used properly in the right case." MR LUCKY: PwC Appointed as Joint Administrators ----------------------------------------------- Stuart Maddison and Steve Ellis of PricewaterhouseCoopers LLP were appointed as Joint Administrators of Mr. Lucky Bags Limited, Stockleys Sweets Limited and Teepee Creative Limited on September 23, 2009. Following their appointment, the administrators announced a sale of the Teepee business to Bon Bon Buddies Ltd. Teepee Creative Limited is a manufacturer and distributor of branded toys and gifts. Two remaining subsidiaries of Mr Lucky Bags Limited (Dovedale Confectionary Limited and Toontastic Publishing Limited) are not in administration and continue to operate as normal. Mr Lucky Bags Limited, which is based in Stoke-on-Trent and has 68 employees, is a manufacturer and distributor of novelty party bags containing sweets, toys and games to high street and independent retailers in the UK and Europe. Stockleys Sweets Limited is based in Accrington, near Blackburn, and is a traditional manufacturer of confectionery. Stockleys Sweets Limited employs 38 staff. The Companies were placed into administration following a difficult trading period, as a result of the current downturn in the retail sector. Stuart Maddison, Joint Administrator and partner at PricewaterhouseCoopers LLP said, "We are delighted to have secured a sale of the Teepee business via the pre-packaged method of administration. This sale demonstrates that in the right circumstances, a pre-packaged administration following an extensive accelerated marketing process can provide real stability to a brand". "Mr Lucky Bags and Stockleys are two well-established businesses and the immediate priority following our appointment is to seek a buyer for the businesses as a going concern. To that end, we invite any interested parties to contact us as soon as possible. While this process takes place, we will be relying on the support of our customers, suppliers and of course the employees to enable us to fulfill outstanding orders." Any interested parties should contact Julie Skelly at PricewaterhouseCoopers LLP on 01509 604 194. VIRGIN MEDIA: LSE Trading Starts Tomorrow, Oct. 1 ------------------------------------------------- Salamander Davoudi at The Financial Times reports that Virgin Media will start trading on the London Stock Exchange tomorrow, Oct. 1. According to the FT, the secondary listing is aimed at broadening the company's shareholder base and raising its profile in the UK and Europe. Virgin Media, which will not issue any new equity as part of the process, will continue to use Nasdaq as its primary listing, the FT notes. As reported in the Troubled Company Reporter-Europe on Aug. 11, 2009, Virgin Media lost an unexpectedly large number of subscribers in the three months to the end of June. The FT disclosed some 26,200 customers left the company in the second quarter -- almost twice as many as expected. According to the FT, Virgin Media's pre-tax losses in the first half of the year narrowed from GBP554 million to GBP168 million. The FT said in spite of the drop in customer numbers, half-year revenue fell slightly from GBP1.89 billion to GBP1.87 billion as the remaining customers at Virgin Media increased their average monthly spending to a record GBP43.27, up from GBP41.68 in the same period last year. About Virgin Media Headquartered in London, England, Virgin Media Inc. -- http://www.virginmedia.com/-- is a United Kingdom-based entertainment and communications business. Virgin Media is a residential broadband and mobile virtual network operator, and a provider in the United Kingdom of pay television and fixed-line telephone services. Virgin Media manages its business through three segments: Cable, Mobile and Content. The Cable segment includes the distribution of television programming over the Company�s cable network, and the provision of broadband and fixed- line telephone services to consumers, businesses and public sector organizations. The Mobile segment includes the provision of mobile telephone services under the name Virgin Mobile to consumers over cellular networks owned by third parties. The Company�s Content segment includes the operations of its United Kingdom television channels, such as Virgin1, Living and Bravo's portfolio of retail television channels. In April 2009, Virgin Media Inc. announced that AURELIUS AG has acquired sit-up Ltd. * * * On July 20, 2009, the Troubled Company Reporter-Europe reported that Fitch Ratings affirmed UK cable operator Virgin Media Inc.'s Long-term Issuer Default Rating at 'BB-' with a Stable Outlook, and its Short-term IDR at 'B'. The agency also affirmed Virgin Media Finance's and Virgin Media Investment Holdings Limited's existing instrument ratings. As reported in the Troubled Company Reporter-Europe on June 1, 2009, Moody's Investors Service affirmed the Ba3 corporate family rating of Virgin Media Inc. Moody's said the outlook is stable. * UK: Autumn Critical Period for Hotel Companies, KPMG Says ----------------------------------------------------------- This autumn will be a critical period for many hotel companies, predicted KPMG, as the sector faces the drop off in summer leisure spend and looks for a much needed return of corporate and events business. But with commercial tensions between owners and the brand and management companies as great as they have ever been, flexibility and co-operation will be key to keeping the wolf from the door Richard Hathaway, KPMG's Head of Travel, Leisure and Tourism commented: "Given the rough ride the hotel sector has endured in the last 12 months, the summer will have provided a life line for many struggling businesses, but as leisure spend drops off through the autumn, the next three months could be make or break. "Savvy operators will have optimised their summer trading and the rise of the 'staycation', to offset some of their lost business custom in recent months, but a continued tight rein on costs and cash will be critical in the coming quarter. "Many will find that the their traditionally strong autumn and Christmas revenues from business travel, conferences and events does not return this year and as a result their businesses will remain under severe pressure for the foreseeable future. Indeed recent research indicates that the sector is not expecting an increase in conference and meeting bookings in the coming year. "We are expecting to see a surge in business insolvencies generally in the autumn, and in this context, the hotel sector is unlikely to be an exception. The festive period should provide a leisure trading boost, which will be particularly important this year, as traditionally weak trading in January and February may call time for some." "Tensions between individual hotel owners and the big brands have never been so pronounced, as the pressure on cash and funding heightens their differing priorities. Capital expenditure is a particular pressure point, with a need to find a balance between the long term need to maintain standards and on the short term need to keep servicing debt. This will require considerable flexibility and co-operation or the consequences could be severe for both sections of the industry." About KPMG KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 144 countries and has more than 104,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services. =============== X X X X X X X X =============== * S&P's 2009 Global Corporate Default Tally at 216 -------------------------------------------------- One global corporate issuer defaulted on the week of September 18 to 24, bringing the 2009 year-to-date tally to 216 issuers -- nearly 4x the 62 defaults at this time in 2008, said an article published Sept. 25 by Standard & Poor's. Last week's defaulter was based in Japan, bringing the default tallies by region to 155 issuers in the U.S., 13 in Europe, 34 in the emerging markets, and 14 in the other developed region (Australia, Canada, Japan, and New Zealand), according to the article, titled "Global Corporate Default Update (Sept. 18 - 24, 2009) (Premium)." The latest default resulted from a payment suspension after the issuer, Aiful Corp., successfully applied for alternative dispute resolution (ADR) procedures. S&P views this as a selective default ('SD'). "Selective defaults have accounted for 75 defaults this year, the majority of which were distressed exchanges," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Missed interest payments come in second, accounting for 74 defaults in 2009." Bankruptcy filings also have surged, with 54 issuers so far this year having filed for bankruptcy protection, which surpasses the full-year 2008 total of 49 bankruptcy-related defaults. "Despite unprecedented turbulence in the credit markets and record-high default volume since 2008, the ability of corporate credit ratings to serve as an effective measure of relative default risk remains intact," said Ms. Vazza. This is evidenced by several factors, such as 87% of the issuers that have defaulted this year were rated speculative grade ('BB+' and lower) prior to default, investment-grade-rated issuers ('BBB-' and above) have a 99% survival rate within a one-year time horizon, and the majority of defaults this year stem from the lowest rungs of the credit spectrum, known as weakest links. Globally, 278 issuers are weakest links (entities rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative), and the regional distribution of weakest links closely mirrors the default experience so far this year. Of the global corporate defaulters so far this year, 40% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0%-10%), 16% of issues had recovery ratings of '5' (modest recovery prospects of 10%-30%), 12% had recovery ratings of '4' (average recovery prospects of 30%-50%), and 11% had recovery ratings of '3' (meaningful recovery prospects of 50%-70%). And for the remaining two rating categories, 11% of issues had recovery ratings of '2' (substantial recovery prospects of 70%-90%) and 10% of issues had recovery ratings of '1' (very high recovery prospects of 90%-100%). ********* 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 * * *