/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/091002.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, October 2, 2009, Vol. 10, No. 195 Headlines A U S T R I A BAUSERVICE FASS: Claims Filing Deadline is October 20 BUTTON ENERGY: Claims Filing Deadline is October 20 D E N M A R K KALMAR STRUCTURED: Moody's Takes Rating Actions on Various Notes F R A N C E CHRISTIAN LACROIX: Borletti Group Drops Out of Bidding Race TITAN EUROPE: Moody's Junks Ratings on Three Classes of Notes G E R M A N Y CENTAURUS PLC: Moody's Cuts Rating on Class D Notes to 'B' DEUTSCHE LUFTHANSA: To Cut 15% of Administrative Staff by 2012 DYSTAR TEXTILFARBEN: Files Insolvency Petition for German Units TREVIRA GMBH: Sold to Two German Investors I R E L A N D LIGHTPOINT PAN-EUROPEAN: Moody's Junks Rating on Class E Notes I T A L Y CELL THERAPEUTICS: Closes and Sells Italian Unit MARIELLA BURANI: Advisers to Meet Creditors to Outline Debt Plan TENARIS SA: To Lay Off One-Third of Italian Workforce K A Z A K H S T A N ALMA AIR: Creditors Must File Claims by October 7 ARGIMAC GO: Creditors Must File Claims by October 7 AVANGARD SPETS: Creditors Must File Claims by October 7 MANGISTAU PROST: Creditors Must File Claims by October 7 MERKI ATA: Creditors Must File Claims by October 7 MONOLIT 2003: Creditors Must File Claims by October 7 NEMETSKIYE OKNA: Creditors Must File Claims by October 7 REM STROY 2006: Creditors Must File Claims by October 7 RUDNY METAL: Creditors Must File Claims by October 7 SELECT B: Creditors Must File Claims by October 7 SHYNAR NS XXI: Creditors Must File Claims by October 7 K Y R G Y Z S T A N ALTYN ALCO: Creditors' Meeting Scheduled for October 8 N E T H E R L A N D S KHAMSIN CREDIT: S&P Downgrades Ratings on Three Tranches to 'D' N O R W A Y PETROMENA ASA: Aker Solutions Files NOK17 Mln Claim R U S S I A BELKACHINSKIY LES: Creditors Must File Claims by October 11 DELTA LLC: Creditors Must File Claims by October 11 EXPERIMENTAL MECHANICAL: Creditors Must File Claims by October 11 GOR-STROY LLC: Creditors Must File Claims by October 11 KREMENSKIY DAIRY: Creditors Must File Claims by October 11 LOM-PROM-ROSTOV: Creditors Must File Claims by October 11 METALL MAGNITKI: Creditors Must File Claims by October 11 MOLDING TECHNOLIGIES: Creditors Must File Claims by October 11 OST-STROY LLC: Creditors Must File Claims by October 11 PINYUG-LES LLC: Creditors Must File Claims by October 11 SELIVANOVSKIY MACHINE: Creditors Must File Claims by October 11 STERLITAMAKSKAYA ENGINEERING: Claims Filing Ends October 11 STROITELNYY MIR: Creditors Must File Claims by October 11 STROY-COMPANY LLC: Creditors Must File Claims by October 11 STROY-FINANS LLC: Creditors Must File Claims by October 11 UNITY RE: S&P Changes Outlook to Positive; Affirms 'BB-' Rating URAL LLC: Creditors Must File Claims by October 11 UYARSKIY CONSTRUCTION: Creditors Must File Claims by October 11 VOLGO-STROY LLC: Creditors Must File Claims by October 11 VYBORGSKAYA SHIPPING: Creditors Must File Claims by October 11 * SAKHA REPUBLIC: Fitch Affirms 'BB' Currency Ratings S L O V E N I A MURA D.D.: May Be Declared Bankrupt Amid Mounting Debts PREVENT PUR: Launches Insolvency Proceedings STEKLARSKA NOVA: State to Pay Pension Contributions of Workers S P A I N BBVA FINANZIA: S&P Downgrades Rating on Class C Notes to 'BB' S W E D E N SWEDBANK AB: Fitch Affirms and Withdraws All Ratings S W I T Z E R L A N D BAHAG HOLDING: Claims Filing Deadline is October 7 BAROSOFT AG: Claims Filing Deadline is October 7 BCT SERVICES: Claims Filing Deadline is October 7 BEXYTOL AG: Claims Filing Deadline is October 7 ETABLISSEMENTS RAMUZ: Claims Filing Deadline is October 7 H. HAYDA: Claims Filing Deadline is October 7 MOBATEX AG: Claims Filing Deadline is October 12 SWISS PERFORMEX: Claims Filing Deadline is November 11 VALUELOGIC GMBH: Claims Filing Deadline is October 16 U K R A I N E ANTARKTIKA TOURIST: Creditors Must File Claims by October 8 CONCORD LLC: Creditors Must File Claims by October 8 DALLAS-INK LLC: Creditors Must File Claims by October 7 NAFTOGAZ: Misses Payment on Eurobonds; Nears Restructuring Deal PIATIKHATKI BUTTER: Creditors Must File Claims by October 7 SERVICE KO: Creditors Must File Claims by October 7 SVITEKS LLC: Creditors Must File Claims by October 4 TRADING AND BUILDING: Bankruptcy Supervision Procedure Starts UNITRANS LLC: Court Starts Bankruptcy Supervision Procedure ZHMERINKA BUTTER: Court Starts Bankruptcy Supervision Procedure U N I T E D K I N G D O M BLACKS LEISURE: Closes 89 Loss Making Stores; Mulls 50 Job Cuts BRITISH AIRWAYS: To Finalize Iberia Merger by Year's End BUSINESS MORTGAGE: Moody's Cuts Rating on Class B2 Notes to 'B3' CEVA GROUP: S&P Assigns 'CCC' Rating on US$200 Mil. Secured Notes EUROCREDIT CDO: Moody's Confirms 'Caa1' Rating on Class E Notes FAREPAK: Liquidators Start Settling Claims LDV GROUP: Ex-Rover Consultant Involved in Sale Negotiations LOMBARD STREET: Moody's Cuts Rating on Class E Notes to 'Caa3 * UK: Friendlier Insolvency Laws Attract European Companies X X X X X X X X * BOOK REVIEW: Working Together - 12 Principles for Achieving ********* ============= A U S T R I A ============= BAUSERVICE FASS: Claims Filing Deadline is October 20 ----------------------------------------------------- Creditors of Bauservice Fass 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. Michael Lentsch Hauptplatz 32 2700 Wiener Neustadt Austria Tel: 02622/27 0 41 Fax: 02622/292 46 E-mail: office@kosch-partner.at BUTTON ENERGY: Claims Filing Deadline is October 20 --------------------------------------------------- Creditors of Button Energy 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 10:30 a.m. For further information, contact the company's administrator: Dr. Guenther Viehboeck Bahnhofsplatz 1a/Stg.1/Top 5 2340 Moedling Austria Tel: 02236/22 050 Fax: 02236/49 239 E-mail: office@viehboeck.at ============= D E N M A R K ============= KALMAR STRUCTURED: Moody's Takes Rating Actions on Various Notes ---------------------------------------------------------------- Moody's Investors Service has taken these rating actions on notes issued by Kalmar Structured Finance A/S, a collateralized debt obligation transaction referencing a static portfolio of corporate entities. Issuer: Kalmar Structured Finance A/S -- SKr130M Class A Secured Fixed Rate Notes due 2010 Notes, Downgraded to B2; previously on Feb. 23, 2009 Downgraded to Ba3 -- NKr.80M Class B1 Secured Floating Rate Notes due 2010 Notes, Downgraded to Caa2; previously on Feb. 23, 2009 Downgraded to B3 -- EUR8.5M Class B2 Secured Floating Rate Notes due 2010 Notes, Downgraded to Caa2; previously on Feb. 23, 2009 Downgraded to B3 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 317.47 initially to 908.63, equivalent to an average rating of the current portfolio of B2. The reference portfolio includes exposures to CIT Group, Inc., and Clear Channel Communications, Inc. which have experienced substantial credit migration in the past few months, and are now rated Ca. Since inception of the transaction the subordinations of the rated tranches have been reduced due to credit events on Washington Mutual. This credit event led to a decrease of approximately 0.29% of the subordinations of the tranches. The reference portfolio is diversified with the most represented industry sectors being Telecommunications (9.33%), Retail (9.33%) and Insurance (8.67%). Moody's monitors this transaction using primarily the methodology and its supplements for CSOs 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. =========== F R A N C E =========== CHRISTIAN LACROIX: Borletti Group Drops Out of Bidding Race ----------------------------------------------------------- Scheherazade Daneshkhu and Simeon Kerr at The Financial Times report that Italy's Borletti Group has dropped out of the bidding race for Christian Lacroix SNC, leaving Sheikh Al Hassan bin Ali Al-Nuami as frontrunner. The FT relates Borletti, headed by Maurizio Borletti, had teamed up with the designer himself but said on Wednesday that despite studying the offer for three months "the conditions for confirming this takeover were not brought together". According to the FT, Regis Valliot, Lacroix's administrator, said that a rival offer from Sheikh Al Hassan, a nephew of the ruler of Ajman, was "overall very satisfactory". Mr. Valliot, as cited by the FT, said Sheikh Al Hassan's offer involved injecting EUR70 million (US$102 million) of capital into Christian Lacroix and keeping all the company's employees. Sheikh Al Hassan faces rival proposals from France's Bernard Krief Consulting and the Financiere Saint-Germain holding company which owns the Daum and Lalique crystalware firms, the FT notes. The Falic Group, Lacroix's Florida-based owner, has submitted a restructuring plan that would involve the disposal of the haute couture line and would reduce the workforce from 124 people to 12, the FT discloses. On June 4, 2009, the Troubled Company Reporter-Europe, citing AFP, reported a commercial court in Paris placed Christian Lacroix SNC into administration. AFP disclosed the company declared insolvency in May, blaming "the sharp downturn of the luxury market." TITAN EUROPE: Moody's Junks Ratings on Three Classes of Notes ------------------------------------------------------------- Moody's Investors Service has downgraded these classes of Notes issued by Titan Europe 2006-3 plc (amounts reflect initial outstandings): -- EUR471.975M Class A Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to Aa1; previously on June 27, 2006 Definitive Rating Assigned Aaa -- EUR245.427M Class B Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to Ba2; previously on April 8, 2009 Aaa Placed Under Review for Possible Downgrade -- EUR51.917M Class C Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to B2; previously on April 8, 2009 Aa3 Placed Under Review for Possible Downgrade -- EUR56.637M Class D Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to Caa2; previously on April 8, 2009 Baa1 Placed Under Review for Possible Downgrade -- EUR37.9M Class E Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to Ca; previously on April 8, 2009 Ba1 Placed Under Review for Possible Downgrade -- EUR30.043M Class F Commercial Mortgage Backed Floating Rate Notes due 2016, Downgraded to C; previously on April 8, 2009 Ba2 Placed Under Review for Possible Downgrade At the same time Moody's has affirmed the Aaa rating of the Class X Notes. Moody's does not rate the Class G and Class H Notes issued by Titan Europe 2006-3 plc. The rating action concludes the review for possible downgrade that was initiated for the Class B, C, D, E, and F Notes on 8 April 2009. The rating action takes Moody's updated central scenarios into account, as described in Moody's Special Report "Moody's Updates on Its Surveillance Approach for EMEA CMBS". 1) Transaction and Portfolio Overview Titan Europe 2006-3 plc closed in June 2006 and represents the securitization of initially eighteen commercial mortgage loans originated by Credit Suisse International. The loans were secured directly or indirectly by first-ranking legal mortgages over 40 commercial properties located in France (44% of the original portfolio by underwriter market value), Germany (28%), The Netherlands (15%), Belgium (7%) and Luxembourg (6%). The properties were predominantly office (52%) followed by mixed-use (26%), retail (12%) and the remaining pool comprised other types including hotels (7%). Since closing of the transaction, four loans (6% of the initial pool balance), prepaid in full. The prepayment proceeds were allocated 50% sequential and 50% pro-rata to the Notes. The remaining loans are not equally contributing to the portfolio: the largest loan (the Target Portfolio Loan) represents 27.9% of the current portfolio balance, while the smallest loan (the AEA Portfolio Loan) represents 0.7%. The current loan Herfindahl index is 7.1 compared to 8.1 at closing. Following the prepayments, the remaining 14 loans are secured by 36 properties with similar property type composition as per closing: office (52%), mixed-use (26%), retail (13%) and other property types including a hotel (6%). 46% of the properties are currently located in France, 27% in Germany, 17% in The Netherlands, 6% in Belgium and 4% in Luxembourg. As of the last interest payment date in July 2009, 13 of the remaining 14 loans were current while one loan (the SQY Ouest Shopping Centre Loan "SQY Ouest", 12.7% of the current portfolio) was transferred into special servicing prior to the IPD in May 2009 and suffered a payment shortfall on the July 2009 IPD. In September 2009, two additional loans (the Quelle Nurnberg Loan, 11.0% of the current portfolio and the Monnet Portfolio Loan, 8.0% of the current portfolio) were transferred into special servicing due to a material loan event of default. Thus, as of end of September 2009, approximately 32% of the outstanding portfolio balance is in special servicing. Following the default of the SQY Ouest and Quelle Nurnberg Loans, the sequential payment trigger in the transaction has been breached; therefore, the proceeds from prepayments, balloon payments and loan recoveries will be allocated sequentially to the Notes. 2) Rating Rationale The rating actions follow a detailed re-assessment of the loan and property portfolio's credit risk. Hereby, Moody's main focus was on property value declines, term default risk, refinancing risk and the anticipated work-out timing for potentially defaulting loans. In its review, Moody's especially concentrated on the largest loans in the portfolio (the Target Loan and the Weserstrasse Loan) and on the loans currently showing performance problems (SQY Ouest Loan, Quelle Nurnberg Loan and Monnet Loan) which altogether represents 73% of the current portfolio balance. As outlined in more detail below, the rating action is mainly driven by: (i) the adverse performance of three loans which comprise approximately 32% of the current portfolio (SQY Ouest, Quelle Nurnberg, and Monnet Loans); (ii) the transaction's refinancing profile; (iii) the most recent performance of the European commercial property markets; and (iv) Moody's opinion about future property market performance. Driven by, in most cases, a higher default risk assessment at the loan maturity dates, Moody's now anticipates that a very large portion of the portfolio will default over the course of the transaction term. Coupled with the negative impact of significantly reduced property values, Moody's expects a very high amount of losses on the securitized portfolio. Those expected losses will, given the back-loaded default risk profile and the anticipated work-out strategy for defaulted loans, crystallize only towards the mid to end of the transaction term. The current subordination levels for Moody's rated classes are 53.7%, 25.8%, 19.9%, 13.4%, 9.1% and 5.7% for the Class A, the Class B, the Class C, the Class D, the Class E and the Class F Notes respectively. While the subordination provides protection against losses for the more senior Notes, also the likelihood of higher than expected losses on the portfolio has increased substantially, which results in the rating action. Since closing, four loans amounting to only 6% of the original portfolio balance prepaid in full. The prepayment proceeds of the loans were allocated to the Notes on a 50% sequential and 50% pro- rata basis. At the same time, the loan portfolio provides for limited scheduled principal repayment over time. As a result, the Notes benefited only to a limited extent from an increase in subordination levels since closing. The Class B, Class C, Class D, Class E, and Class F Notes are subordinated in the transaction's capital structure. Due to this additional leverage, the higher portfolio risk assessment has a relatively bigger impact on the expected loss of the more junior Notes than on the expected loss of the senior Notes. The Class X Notes are entitled to receive the difference between (i) interest payable on the loans and (ii) interest payable on the Notes and certain costs. The liquidity facility can be used to cover potential interest shortfalls on the Class X Notes. In relation to principal, the net proceeds from the issue of the Class X Notes have been retained by the Issuer in the Class X Account for the purpose of repaying the principal amount of the Class X Notes. Moody's believes that the Class X Notes have a different risk profile in comparison to the other classes in the transaction given their characteristics. The rating of the Class X Notes is therefore not directly affected by the credit risk of the loan portfolio. Moody's anticipates that, following the application of its updated central scenarios, Titan Europe 2006-3 plc is one of the most negatively affected EMEA CMBS conduit deals secured by Pan- European collateral. 3) Moody's Portfolio Analysis Property Values. Property values across the Continental European markets have declined, in some markets significantly, until mid 2009 and are expected to continue to decline at least until 2010. Moody's estimates that compared to the underwriter's ("U/W") values at closing, the values of the properties securing this transaction have declined by on aggregate 33% until mid 2009 (ranging from a 13% decrease for the Matrix Data Centre Loan to a 67% decline for the Quelle Nurnberg Loan). For the Quelle Nurnberg Loan, the value assessed by Moody's is based on a vacant possession due to the insolvency of the sole tenant, Quelle AG, and it is 56% lower than the vacant possession value of the U/W at closing. Looking ahead, Moody's anticipates further declines until 2010, resulting in on aggregate 41% value decline for the portfolio compared to the U/W value at closing (ranging from 17.5% decline for the Matrix Data Centre Loan to a 67% decline for the Quelle Nurnberg Loan). Based on this property value assessment, Moody's estimates that the transaction's mid-2009 weighted average securitized loan-to- value ("LTV") ratio was 122% compared to the reported U/W LTV of 78%. Due to the further envisaged declines, the WA LTV will increase in Moody's opinion to 136% in 2010 and will only gradually recover thereafter. Based on Moody's anticipated trough values, the LTVs for the securitized loans range between 208% (Quelle Nurnberg Loan) and 78% (Matrix Data Centre Loan). As one loan (Quelle Nurnberg) has additional debt in the form of a B-loan (amounting to EUR 9.4 million), based on estimated trough values, the overall whole loan leverage is on average 139%. Moody's has taken the anticipated property value development, including a gradual recovery from 2011 onwards, into account when analyzing the default risk at loan maturity and the loss given default for each securitized loan. Refinancing Risk. The transaction does not have exposure to loans maturing in the short-term (2009 and 2010). However, 32% of the current portfolio matures in 2011, 21% in 2012 and the remaining 47% in 2013. As Moody's expects property values in the Continental European markets to only slowly recover from 2011 onwards, all loans will be still highly leveraged at their respective maturity dates. Consequently, in Moody's view, for all of the loans, the default risk at maturity has increased substantially compared to the closing analysis. Term Default Risk. The occupational markets in Continental Europe are currently characterized by falling rents, increasing vacancy rates and higher than average tenant default rates. Taking into account the lease profile of the respective loans, the Target Loan (27.9% of current portfolio) and the Rivierstaete Office Loan (5.9% of current portfolio) could be in Moody's view especially exposed to weakening occupational markets. Based on the current lease profile, Moody's has incorporated into its analysis an allowance for deterioration in coverage ratios and weakening tenant qualities on a majority of the loans, in turn increasing the term default risk assumption for the respective loans. Loans in Default and/or Special Servicing. Three loans in the portfolio (SQY Ouest, Quelle Nurnberg and Monnet Loan) which account for 31.7% of the current outstanding balance are in default and in special servicing. The SQY Ouest Loan was transferred to special servicing following a notice sent by the borrower stating that it is generally unable to pay its debts as they become due. Subsequent to the transfer event, no debt service due on the loan was paid on the July 2009 IPD which resulted in a liquidity facility draw in order to pay interest due on the Class E, Class F, Class G, Class H Notes and partially for the interest due on the Class D Notes. The property securing the loan, the SQY Ouest Shopping Centre located 20 km south west of Paris is reported to suffer from high rental arrears and vacancy of approximately 11% which the borrower has not been able to reduce over the last year. Moody's understands that the special servicer is currently analyzing various work-out options with the most likely option being a restructuring of the loan. The borrower of the Quelle Nurnberg Loan did not pay the required prepayment of EUR4 million which was required when the single tenant, Quelle AG did not renew its lease which is scheduled to expire in December 2015. As the non-payment of the required amount constituted an event of default under the facility agreement, the loan was transferred into special servicing in September 2009. Furthermore, the sole tenant is currently in insolvency proceedings which resulted in a non-payment of the rent for the months of June and July 2009. Moody's understands that the rent was paid for August 2009, however, further details have not been disclosed yet by the special servicer. The Monnet Loan has been in breach of its DSCR covenant set at 1.0x since Q4 2008 with the latest coverage being at 0.67x (12- month forward looking) as of the last IPD. The servicer sent the borrower a notice on August 27, 2009 that it has 10 business days to cure the covenant breach. As the borrower did not cure the covenant breach in the permitted grace period, the loan was transferred into special servicing as of 29 September 2009. Overall Default Risk. Based on its revised term and maturity default risk assessment for the securitized loans, Moody's anticipates that a very large portion of the portfolio will default over the course of the transaction term. The default risk of all loans is predominantly driven by refinancing risk. In Moody's view, excluding the SQY Ouest, Quelle Nurnberg and the Monnet Loans which Moody's has deemed as defaulted, the Weserstrasse Loan (13.4% of current portfolio balance) has currently the highest default risk, while the Stage Loan (1.2% of the current portfolio) has the lowest risk of defaulting. Concentration Risk. The portfolio securitized in Titan Europe 2006-3 plc exhibits an average concentration in terms of property types and property location. Work-Out Strategy. In scenarios where a loan defaults, Moody's current expectation is that the servicer will most likely not pursue an immediate sale of the property in the depressed market conditions. Therefore, Moody's has assumed that in most cases, upon default, a sale of the mortgaged properties and ultimate work-out of the loan will occur at a later point in time. Increased Portfolio Loss Exposure. Taking into account the increased default risk of the loans, the most recent performance of the commercial property markets in Continental Europe, Moody's opinion about future property value performance and the most likely work-out strategies for defaulted loans, Moody's anticipates a very high amount of losses on the securitized portfolio, which will, given the backloaded default risk profile and the anticipated work-out strategy for defaulted loans, crystallize only towards the mid to end of the transaction term. ============= G E R M A N Y ============= CENTAURUS PLC: Moody's Cuts Rating on Class D Notes to 'B' ---------------------------------------------------------- Moody's Investors Service has downgraded these classes of Notes issued by Centaurus (Eclipse 2005-3) plc (amounts reflecting the initial outstanding amounts): Issuer: CENTAURUS (ECLIPSE 2005-3) plc -- EUR381.2M Class A Commercial Mortgage Backed Floating Rate Notes due 2015, Downgraded to A1; previously on Dec. 22, 2005 Definitive Rating Assigned Aaa -- EUR61.9M Class B Commercial Mortgage Backed Floating Rate Notes due 2015, Downgraded to Baa2; previously on April 8, 2009 Aa2 Placed Under Review for Possible Downgrade -- EUR97.7M Class C Commercial Mortgage Backed Floating Rate Notes due 2015, Downgraded to Ba3; previously on April 8, 2009 A2 Placed Under Review for Possible Downgrade -- EUR94.5M Class D Commercial Mortgage Backed Floating Rate Notes due 2015, Downgraded to B3; previously on April 8, 2009 Baa3 Placed Under Review for Possible Downgrade -- EUR0.05M Class X Commercial Mortgage Backed Floating Rate Notes due 2015; Affirmed at Aaa; previously on Dec. 22, 2005 Definitive Rating Assigned Aaa Moody's does not rate the Class E Notes issued by Centaurus (Eclipse 2005-3) plc. The rating action takes Moody's updated central scenarios into account, as described in Moody's Special Report "Moody's Updates on Its Surveillance Approach for EMEA CMBS". 1) Transaction Overview Centaurus (Eclipse 2005-3) plc represents a true sale of a portion of five cross-defaulted but not cross-collateralized senior loans (the "Senior Loans") secured by about 30,000 multifamily units plus some commercial units and parking spaces in Germany. The properties were initially held by five companies that owned and managed the properties when two Blackstone funds acquired those companies in 2004. The purchase of the companies was financed through (i) the Senior Loans, (ii) five senior ranking revolving credit facilities, (iii) continuing debt that was predominately ranking senior to the Senior Loans, (iv) five Junior Loans and (v) equity from the Blackstone funds. At closing in December 2005, a pro-rata portion of 75.43% of the Senior Loans was securitized in this transaction. Since closing of the transaction, the Blackstone funds sold the majority stake in the borrower group to a consortium of institutional investors. All five partially amortizing Senior Loans (and Junior Loans) mature in September 2012. At closing of the transaction, Moody's highlighted (i) the high overall leverage, (ii) the refinancing risk, (iii) the cross- defaulted but not cross-collateralized nature of the loans and (iv) the prepayment risk coupled with (a) a missing release premium in case a whole borrower is sold (and its debt prepaid) and (b) pro-rata allocation of the prepayment proceeds as main weaknesses of the transaction. 2) Rating Rationale The downgrade was prompted by (i) the property value decline that Moody's anticipates for large multi-family portfolios since the peak of the market in 2007; (ii) the compared to initial expectations underperformance of cash flows derived from the property portfolio, resulting in lower debt service coverage ratios than anticipated and also influencing Moody's value assessment; (iii) the compared to initial expectations underperformance in relation to unit sales that results, together with current and anticipated deferral of Junior Loans' interest, in an higher than anticipated maturity balance for most of the loans; (iv) a significantly increased refinancing risk for the loans given the transaction's size, leverage and the loan maturity in 2012; and (v) the increased credit quality dispersion of the Senior Loans coupled with the still pro-rata allocation in case of loan prepayments or repayments at loan maturity. In Moody's view, the default risk of the securitized loans has increased significantly compared to closing. Together with decreased property values and an expected future adverse value development, Moody's anticipates a substantial amount of losses on the loan portfolio. The available subordination protects the more senior notes against those losses, but the variability around the expected loss has increased as well, resulting in the rating action. On an aggregated portfolio basis, the current Moody's Note-to- Value (NTV) of 67.5% for the Class A Notes, 72.5% for the Class B Notes, 80.4% for the Class C Notes and 88% for the Class D Notes provides some property value cushion, but this value cushion has already been eroded since closing and Moody's expects a further erosion until 2011. Important for more senior notes, as the current Moody's LTV levels of the Senior Loans range from 60% to 90%, for scenarios in which the better loans repay or prepay before the sequential pay trigger is hit, the NTV levels for senior notes are expected to increase in tandem with the NTV levels of junior notes. In other words, in those scenarios the available subordination to more senior notes does not increase in order to mitigate the negative effect of an increased expected loss of the then remaining loan portfolio. 3) Transaction Performance History Coverage and cash flows. Senior and Junior Loan ICR and DSCR have been continuously lower than anticipated at closing. As per July 2009 IPD, the aggregated Senior Loan DSCR was 1.09x (compared to 1.38x at closing) and the aggregated Junior Loan ICR (assuming deferred interest was due) was 0.91x (compared to 1.16x at closing). Vacancy rates. The vacancy rate in the property portfolio increased slightly from 6.24% at closing to above 7% until the beginning of 2007. Since then vacancies have stabilized, in July 2009 the vacancy rate was 7.68%. Vacancy rates range from 5.3% in the KWG portfolio to 9.8% in the Bremische portfolio. Values. The underwriter's value of the portfolio was EUR1.43 billion at closing of the transaction. The portfolio was revalued once at the end of 2007, showing an increased value of EUR1.65 billion (+15%). Property sales. Since Closing, 6% of the aggregated loan balance repaid following unit sales and scheduled amortization. At the closing of the transaction, the sponsor intended to sell about 33% of the portfolio over the term of the Senior Loans. In the meantime, the new consortium of sponsors has changed the business plan and does not intend to sell meaningful amounts of individual units. In total, less than 2% of the portfolio has been sold, hence the transaction delevered less than initially anticipated. As a consequence of scheduled amortization, prepayments due to unit sales and the prepayment of the Junior Loan of the BBG borrower, the total outstanding debt reduced by roughly EUR100 million since closing (Senior Loans, Junior Loans, continuing debt and the revolving credit facility). Currently, the total debt amounts to EUR1,190 million and consists of the Senior Loans (EUR811.6 million per July 2009 IPD), the Junior Loans (EUR122.2 million plus EUR4.8 million accrued interest), EUR12.8 million of drawn revolving credit facilities and EUR238.8 million of continuing debt. Taking into account the latest valuation performed in December 2007, the total effective Loan-to-Value of the borrowers (including Junior Loans) was 72% as per the last IPD in July 2009, compared to 86.6% at closing. The reduction in LTV was mostly driven by the prepayment of one Junior Loan and by the revaluation. The effective LTV takes into account that certain parts of continuing debt are effectively not ranking senior to the Senior Loans. Within the transaction, scheduled amortization is applied sequentially to the Notes, while repayments at loan maturity and prepayments applied to the Senior Loans are allocated pro-rata to the Notes. The transaction switches to fully sequential if certain triggers are hit, which include (i) 10% of more of the outstanding Loans are in default and (ii) the absolute principal outstanding loan balance is less than 20% of the balance at closing. As the triggers are not hit to date, the transaction is still in modified pro-rata mode. Accordingly, as prepayments due to unit sales were applied pro-rata, the subordination available to the Class A to Class E Notes has only marginally increased since closing. 4) Moody's Portfolio Analysis Property Portfolio Income. The rental income derived from the property portfolio has been stable since closing (after taking into account unit sales). However, the net operating income (NOI) reported continues to be volatile, mainly due to hedging gains and losses as well as fluctuations in operating expenses. On average, NOI has been slightly increasing, but the sponsor consortium's business plan of increasing NOI by investing in the property portfolio has not yet shown meaningful increases. Moody's notes that the effectively available cash flows for debt service might differ from the figures shown in the investor reporting, mainly due to German GAAP-based nature of the investor report. Overall, net cash flows are expected to continue underperforming Moody's initial expectations. Debt Service Capability and Junior Loans. In light of increasing amortisation schedules on all five Senior Loans, Moody's expects continuing and even increasing pressure on DSCR given its rather constant cash flow expectations. In addition, Moody's notes that currently the payment of the Junior Loan interest is deferred. Given the potential build-up of deferred Junior interest in the future, it is possible that Junior Loan deferred interest payments will exceed 25% of the Junior Loan balance during the term of the loans. At this point, junior lenders that are secured by the same mortgages as senior lenders might accelerate the junior loans if -- amongst others -- an updated valuation is greater than 125% of the senior liabilities that include the securitized and minority senior lenders, the revolving credit facility as well as the continuing debt. This increases the potential for some of the loans defaulting during their term. Property Values. The number of transactions involving larger multi-family portfolios in Germany has decreased significantly since the peak of the market in 2006 and 2007. Moody's assumes that since closing, the aggregated value of the portfolio has decreased by 16% to EUR1.21 billion (or EUR640 psm), and may drop further to a trough value of EUR1.1 billion (EUR605 psm) in 2010/2011. The Moody's values reflect both the reduced interest in acquiring larger multi-family portfolios in Germany and the restricted availability of financing of portfolios of this size. In deriving these value assessments, Moody's took into account a lower than reported annual net cash flow of EUR64 million, mainly due to higher assumptions regarding ongoing CAPEX requirement. Moody's took those property values into account when assessing the default risk at maturity and the loss given default of the securitized Senior Loans. Based on Moody's value assumption, the transactions' current total LTV is 98.2%, increasing to 108% based on trough values (disregarding amortization between and trough of the market; this is translating into a 97% LTV when solely taking into account the Senior Loans, senior minority, continuing debt and working capital facility). Default Risk. Compared to Moody's closing analysis, the term default risk of the loans has increased given the absence of property sales that could derive excess cash and the lower than expected coverage ratios of the loans. Moreover, the Junior Loan interest deferral might give rise to further default risk as discussed above. Overall, Moody's believes the main default risk of the loans is still the refinancing risk. Given the increased LTVs of the loans and the high total debt balance that needs to be refinanced in 2012, the default risk of the loans at maturity has increased significantly. The continuing debt can continue to be outstanding and might reduce the total amount of debt that needs to be refinanced. Structural Aspects. Moody's believes that next to the refinancing risk a main weakness of the transaction remains the non-cross collateralization of the loans, paired with (i) missing release premia upon prepayments or repayments of whole loans by the borrowers (which could happen for example if a borrower is sold and its debt prepaid or if a borrower successfully refinances its debt while others do not) and (ii) the pro-rata allocation of repayment at maturity and prepayment proceeds. In a scenario where refinancing the whole debt amount or selling the total property portfolio appears not possible, adverse selection might occur in terms of refinancing or repaying the better (lower levered) loans without a release premium and potential pro-rata allocation of the proceeds, while the transaction remains exposed to the less performing loans and borrowers without building up incremental subordination for the more senior notes. Increased Loss Exposure. Taking into account the increased default risk of the loans, Moody's decreased property values and the expected future value development. Moody's anticipates a substantial amount of losses on the loan portfolio. The available subordination protects the more senior notes against those losses, but the variability around the expected loss has increased as well, resulting in the rating action. On an aggregated portfolio basis, the current Moody's Note-to-Value of 67.5% for the Class A Notes, 72.5% for the Class B Notes, 80.4% for the Class C Notes and 88% for the Class D Notes provides some value cushion, but this value cushion has already been eroded since closing and Moody's expects a further erosion until 2011. Important for more senior notes, as the current Moody's LTV levels of the Senior Loans range from 60% to 90%, for scenarios in which the better loans repay or prepay before the sequential pay trigger is hit, the NTV levels for senior notes are expected to increase in tandem with the NTV levels of junior notes. In other words, in those scenarios the available subordination to more senior notes does not increase in order to mitigate the negative effect of an increased expected loss of the then remaining DEUTSCHE LUFTHANSA: To Cut 15% of Administrative Staff by 2012 -------------------------------------------------------------- Dow Jones Newswires reported that a spokesman for Deutsche Lufthansa AG confirmed Monday last week that the German airline plans to cut around 15% of its administrative staff by the year 2012. The spokesman declined to specify the number of jobs to be cut, but said personnel costs will be reduced by around 5% annually to 2012, according to Dow Jones. Deutsche Lufthansa AG is an aviation company with operations worldwide. It operates in five business segments: Passenger Transportation, Logistics, Maintenance, Repair and Overhaul (MRO), Information Technology (IT) services and Catering. On January 22, 2008, it acquired 19% of the shares in JetBlue Airways. In October 2008, Lufthansa established an Italian company called Lufthansa Italia as it mulls to make Milan based Malpensa airport its third hub after Frankfurt and Munich. In September 2009, Austrian Airlines AG was taken over by Deutsche Lufthansa AG. Austrian Airlines will therefore become part of the Lufthansa Group as of September 2009. * * * As reported in the Troubled Company Reporter-Europe on Sept. 7, 2009, Moody's Investors Service lowered the long-term and short- term issuer ratings of Deutsche Lufthansa AG to Ba1/Not-prime from Baa3/Prime-3. At the same time Moody's has withdrawn the long- term issuer rating and assigned a Corporate Family Rating and Probability of Default Rating at Ba1. Moody's said the outlook is stable. DYSTAR TEXTILFARBEN: Files Insolvency Petition for German Units --------------------------------------------------------------- Intelex reports that DyStar, which includes Textilfarben GmbH, DyStar Textilfarben GmbH & Co Deutschland KG as and DyStar Holdings GmbH, filed an insolvency petition with the Local Court Frankfurt am Main for the company's business operations in Germany after failing to address liquidity pressures. According to the report, DyStar's insolvency filing includes the company's sites in Frankfurt, Leverkusen, Brunsbuettel, Geretsried, and Ludwigshafen, which combined employ about 1,300 people. The court, the report discloses, appointed Dr. Stephan Laubereau, of Pluta Rechtsanwalts GmbH, as preliminary insolvency administrator over the estate of DyStar Textilfarben GmbH & Co. Deutschland KG, and Miguel Grosser, of JAFFE Rechtsanwalte Insolvenzverwalter, as preliminary insolvency administrator over the estate of DyStar Textilfarben GmbH. DyStar Textilfarben GmbH -- http://www2.dystar.com/-- is a global company offering dyes and services for the textile and leather industry. The company is based in Industriepark Hoechst, Frankfurt am Main, Germany. TREVIRA GMBH: Sold to Two German Investors ------------------------------------------ P. B Jayakumar and Nevin John at Business-Standard report that a German bankruptcy court has sold off Reliance Industries' polyester making subsidiary Trevira GmbH to two German investors, Stefan Messer and Karl-Gerhard Seifert, for an undisclosed amount. According to the report, sources said proceeds from the sale will be used to clear outstanding liabilities of the creditors of Trevira, with the rest of the funds going to RIL. "After discounting the liabilities, RIL is expected to receive a premium of about 20 per cent over the Rs 440-crore investment it had made to buy this company," the report quoted an RIL executive familiar with the development as saying. The report states production sites of Trevira in Bobingen, Guben and Zielona Gora in Poland, together with the sales site in Hattersheim and some other sales offices, will be transferred to the new owners by the first week of November. As reported in the Troubled Company Reporter-Europe on June 9, 2009, Trevira commenced insolvency proceedings by filing an application with the court in Augsburg Court in State of Bavaria, Germany. The move follows major efforts by the company to overcome the impact of industrial slowdown in Europe particularly of the automotive and textile sectors to whom it is an important supplier. ============= I R E L A N D ============= LIGHTPOINT PAN-EUROPEAN: Moody's Junks Rating on Class E Notes -------------------------------------------------------------- Moody's Investors Service announced that it has downgraded the ratings of these notes issued by LightPoint Pan-European CLO 2006 p.l.c.: -- EUR23,500,000 Class B Floating Rate Notes Due 2022, Downgraded to A1; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade; -- EUR9,500,000 Class E Floating Rate Notes Due 2022, Downgraded to Caa2; previously on March 13, 2009 Downgraded to Caa1 and Placed Under Review for Possible Downgrade. According to Moody's, the rating actions taken on the notes are a result of credit deterioration of the underlying portfolio. Such credit deterioration is observed through a decline in the average credit rating (as measured by the weighted average rating factor), an increase in the dollar amount of defaulted securities, and an increase in the proportion of securities from issuers rated Caa1 and below. In particular, the weighted average rating factor has increased over the last year and is currently 2680 versus a test level of 2550 as of the last trustee report, dated August 20, 2009. Based on the same report, defaulted securities currently held in the portfolio total about EUR10.2 million, accounting for roughly 3.25% of the collateral balance, and securities rated Caa1 or lower make up approximately 8.11% of the underlying portfolio. The downgrade actions taken on the Class B Notes and Class E Notes also reflect Moody's revised assumptions with respect to default probability (including certain stresses pertaining to credit estimates) and the calculation of the Diversity Score. These revised assumptions are described in the publication "Moody's Approach to Rating Collateralized Loan Obligations," dated August 12, 2009. Moody's analysis also reflects the expectation that recoveries for second lien loans will be below their historical averages, consistent with Moody's research. Other assumptions used in Moody's CLO monitoring are described in the publication "CLO Ratings Surveillance Brief - Second Quarter 2009," dated July 17, 2009. Due to the impact of all aforementioned stresses, key model inputs used by Moody's in its analysis, such as par, weighted average rating factor, diversity score, and weighted average recovery rate, may be different from the trustee's reported numbers. In addition, Moody's has upgraded the ratings of these notes: -- EUR20,500,000 Class C Deferrable Floating Rate Notes Due 2022; Upgraded to Baa3; previously on March 13, 2009 Downgraded to Ba1 and Placed Under Review for Possible Downgrade. Finally, Moody's has confirmed the ratings of these notes: -- EUR20,000,000 Class D Floating Rate Notes Due 2022; previously on March 13, 2009 Downgraded to B1 and Placed Under Review for Possible Downgrade. Moody's notes that the upgrade actions on the Class C Notes and the rating confirmation on the Class D Notes have incorporated the aforementioned stresses as well as credit deterioration in the underlying portfolio. However, the actions reflect updated analysis indicating that the impact of these factors on the ratings of the Class C Notes and Class D Notes is not as negative as previously assessed during Stage I of the deal review in March. The current conclusions stem from comprehensive deal-level analysis completed during Stage II of the ongoing CLO surveillance review, which included an in-depth assessment of results from Moody's quantitative CLO rating model along with an examination of deal-specific qualitative factors. By way of comparison, during Stage I Moody's took rating actions that were largely the result of a parameter-based approach. LightPoint Pan-European CLO 2006 p.l.c., issued on January 31, 2006, is a collateralized loan obligation backed primarily by a portfolio of senior secured loans issued by European obligors. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for 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. ========= I T A L Y ========= CELL THERAPEUTICS: Closes and Sells Italian Unit ------------------------------------------------ Colin Keatinge at Bloomberg News reports that Cell Therapeutics Inc. said it completed the closing of its Bresso, Italy operations. According to Bloomberg, the company said it will receive approximately US$1.1 million from the sale of assets. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc., (Nasdaq and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. Going Concern Doubt Stonefield Josephson Inc. in Los Angeles, California, expressed substantial doubt about Cell Therapeutics' ability to continue as a going concern after auditing company's financial statements for the years ended December 31, 2008, and 2007. The auditing firm reported that the Company has substantial monetary liabilities in excess of monetary assets as of December 31, 2007, including roughly US$19.8 million of convertible subordinated notes and senior subordinated notes which mature in June 2008. It also noted that the Company has sustained loss from operations over the audit periods, incurred an accumulated deficit, and has substantial monetary liabilities in excess of monetary assets as of December 31, 2008. As of June 30, 2009, the Company had US$43.2 million in total assets; and US$98.7 million in total liabilities; resulting in US$57.6 million in shareholders' deficit. The Company had US$1.35 billion in accumulated deficit as of June 30, 2009. MARIELLA BURANI: Advisers to Meet Creditors to Outline Debt Plan ---------------------------------------------------------------- Enza Tedesco at Dow Jones Newswires reports that Mariella Burani Fashion Group SpA said late Wednesday its financial and legal advisers will meet with its creditor banks in coming days in an attempt to outline a preliminary debt restructuring plan. Dow Jones relates in a filing to the Italian stock market regulator, the company said its advisers -- Mediobanca SpA (MB.MI) and KPMG -- are currently reviewing the guidelines of its new industrial plan ahead of the meeting with the creditors. The company, Dow Jones notes, also expects to sign in coming days a debt moratorium to the end of October with its creditor banks, including Unicredit SpA and Intesa Sanpaolo SpA. Cristina Carlevaro at Reuters reports Gabriele Fontanesi, the company's CEO, said the company's restructuring plan foresees divestments worth EUR70-80 million (US$102.6-US$117.3 million). "We have finalized the guidelines of the plan . . . the key years for restructuring will be 2010 and 2011," Reuters quoted Mr. Fontanesi as saying. Debt-for-Equity Swap According to Reuters, Mariella Burani's creditor banks could be ready to swap debt for equity. Reuters relates Mr. Fontanesi said the Burani family -- with a stake of more than 70% -- is willing to subscribe its part of a cash injection directly or indirectly for about EUR50 million. Mr. Fontanesi, as cited by Reuters, said the conversion of debt into equity did not rule out the arrival of a new partner, "preferably industrial which has more resources and new markets." Going Concern On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Burani was halted in Milan trading after the company's auditor Mazars LLP cited "significant elements of uncertainty" about the business as a going concern following a decline in sales. Bloomberg dislcosed the company posted a net loss of EUR142.1 million (US$203 million) in the first half of 2009, compared with net income of EUR4 million a year earlier, while revenue fell 24% to EUR246.1 million. According to Bloomberg, Burani said Mazars couldn't express an opinion on the fashion company's accounts. Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/ -- is an Italy-based company, operating in the fashion market. It designs, produces and distributes a range of apparel, knitwear, leather accessories, jewelry and footwear. The Company divides its operation into four divisions: Clothing Division, Leather Division, Digital Fashion and Fashion Jewellery. The Company�s brand portfolio comprises the Company's own brands, such as Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle, Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among others, and the licensed brands: Vivienne Westwood (Anglomania), Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler (Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty, Sweet Years, Gherardini e John Galliano, among others. Among the subsidiaries there are: Mariella Burani Retail Srl, Antichi Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck Gmbh. TENARIS SA: To Lay Off One-Third of Italian Workforce ----------------------------------------------------- Tommaso Ebhardt at Bloomberg News reports that Tenaris SA plans to cut about a third of its staff in Italy as part of a "strategic repositioning" of its business. Bloomberg relates Tenaris Dalmine SpA, the company's Italian unit, on Monday presented a two-year industrial plan that includes EUR114 million (US$166 million) of investments "that will guarantee the company's long-term continuity." According to Bloomberg, a company spokeswoman estimated the job cuts at 1,000 over the next two years. Mirko Rota, a local union official in Bergamo, estimated the job cuts at 1,024 out of a total workforce of 2,814, Bloomberg notes. Headquartered in Luxembourg, Tenaris S.A. -- http://www.tenaris.com/-- is a global manufacturer and supplier of steel pipe products and related services for energy industry, as well as for other industrial applications. The Company�s customers include oil and gas companies, as well as engineering companies engaged in constructing oil and gas gathering, transportation and processing facilities. Its principal products include casing, tubing, line pipe, and mechanical and structural pipes. The Company operates a network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in North and South America, Europe, Asia and Africa. In April 2009, the Company acquired 77.45% interest in Seamless Pipe Indonesia Jaya, an Indonesian processing business with heat treatment and connection threading facilities. =================== K A Z A K H S T A N =================== ALMA AIR: Creditors Must File Claims by October 7 ------------------------------------------------- Representation of LLP Alma Air Technics is currently undergoing liquidation. Creditors have until October 7, 2009, to submit proofs of claim to: Suyunbai Ave. 292/2-10 050030 Almaty Kazakhstan ARGIMAC GO: Creditors Must File Claims by October 7 --------------------------------------------------- Creditors of LLP Argimac Go 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 July 12, 2009. AVANGARD SPETS: Creditors Must File Claims by October 7 ------------------------------------------------------- Representation of LLP Construction Company Avangard Spets Stroy BG 84 is currently undergoing liquidation. Creditors have until October 7, 2009, to submit proofs of claim to: Eset-Batyr Str. 103/1-93 Aktobe Kazakhstan MANGISTAU PROST: Creditors Must File Claims by October 7 -------------------------------------------------------- Creditors of LLP Mangistau Prost Tsement have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Aktau Building of former kindergarten 51 Micro district 27 Aktau Kazakhstan The court commenced bankruptcy proceedings against the company on July 12, 2009. MERKI ATA: Creditors Must File Claims by October 7 -------------------------------------------------- Representation of LLP Merki Ata Gas is currently undergoing liquidation. Creditors have until October 7, 2009, to submit proofs of claim to: Askarov Str. 2 Merke Jambyl Kazakhstan MONOLIT 2003: Creditors Must File Claims by October 7 ----------------------------------------------------- Creditors of LLP Monolit 2003 have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin Str. 9 Karaganda Kazakhstan The court commenced bankruptcy proceedings against the company on July 17, 2009. NEMETSKIYE OKNA: Creditors Must File Claims by October 7 -------------------------------------------------------- Creditors of LLP Nemetskiye Okna 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 July 12, 2009. REM STROY 2006: Creditors Must File Claims by October 7 ------------------------------------------------------- LLP Rem Stroy 2006 is currently undergoing liquidation. Creditors have until October 7, 2009, to submit proofs of claim to: Panfilov Str. 49-48 Almaty Kazakhstan RUDNY METAL: Creditors Must File Claims by October 7 ---------------------------------------------------- Creditors of LLP Rudny Metal Trade have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan The court commenced bankruptcy proceedings against the company on July 12, 2009. SELECT B: Creditors Must File Claims by October 7 ------------------------------------------------- Creditors of LLP Select B have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin Str. 9 Karaganda Kazakhstan The court commenced bankruptcy proceedings against the company on July 17, 2009. SHYNAR NS XXI: Creditors Must File Claims by October 7 ------------------------------------------------------ Creditors of LLP Shynar NS XXI have until October 7, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Astana Aimanov Str. 6 Room 217 Astana Kazakhstan The court commenced bankruptcy proceedings against the company on July 12, 2009. =================== K Y R G Y Z S T A N =================== ALTYN ALCO: Creditors' Meeting Scheduled for October 8 ------------------------------------------------------ Creditors of LLC Altyn Alco will meet at 10:00 a.m. on October 8, 2009, at: Lenin Str. 377 Osh Kyrgyzstan The company's temporary insolvency manager will discuss the initation of insolvency procedure at the meeting. Proxies must have authorization to vote. ===================== N E T H E R L A N D S ===================== KHAMSIN CREDIT: S&P Downgrades Ratings on Three Tranches to 'D' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'D' from 'CCC-' and withdrew its credit ratings on three tranches of European synthetic collateralized debt obligations. The downgrades follow notification by the calculation agent of losses from credit events in the underlying reference portfolios, which have led to full principal loss of the tranches issued. S&P withdrew the ratings assigned to these three notes due to early termination. Ratings List Ratings Lowered and Withdrawn Khamsin Credit Products (Netherlands) II B.V. EUR5 Million Class A ABS Credit-Linked Notes Series 8 (Milan 2006-1) Ratings ------- Final To From ----- -- ---- NR D CCC- Khamsin Credit Products (Netherlands) II B.V. EUR15.5 Million Class B ABS Credit-Linked Notes Series 9 (Milan 2006-1) Ratings ------- Final To From ----- -- ---- NR D CCC- Khamsin Credit Products (Netherlands) II B.V. EUR5.5 Million Class C ABS Credit-Linked Notes Series 10 (Milan 2006-1) Ratings ------- Final To From ----- -- ---- NR D CCC- NR -- Not rated. =========== N O R W A Y =========== PETROMENA ASA: Aker Solutions Files NOK17 Mln Claim --------------------------------------------------- M2 Presswire, citing business daily Finanavisen, reports that Aker Solutions ASA has filed a NOK17 million claim with the bankruptcy administrators of Petromena ASA. According to M2 Presswire, Aker Solutions has not received full payment for equipment, delivered to two of the three rigs, which the bankruptcy manager is working to sell. M2 Presswire relates Norsk Tillitsmann ASA representative Ola Nygard told news wire TDN Finans the Norwegian trustee services provider filed in a letter, dated September 15, 2009, an application for opening bankruptcy proceedings against Petromena, with the Oslo district court. PetroMENA ASA -- http://www.petromena.no/-- is a Norway-based company engaged in the ownership and operation of drilling rigs and vessels, as well as in the construction of off-shore drilling platforms and facilities for the oil industry. The Company is operational through its three wholly owned Singapore-based subsidiaries: PetroRig I Pte Ltd, PetroRig II Pte Ltd and PetroRig III Pte Ltd. The Company's rigs are designed for drilling in ultra deep waters, in such areas as the Mexican Gulf, Brazil, West and South Africa, among others. Additionally, the Company's subsidiaries are engaged in the construction of semi submersible drilling rigs at the Jurong shipyard in Singapore. As of December 31, 2008, the Company held management and operational agreements with Larsen Oil & Gas Ltd and Larsen Oil Gas AS. The Company's majority shareholder is Petrolia Drilling ASA, with 51.47% of its interests. =========== R U S S I A =========== BELKACHINSKIY LES: Creditors Must File Claims by October 11 ----------------------------------------------------------- Creditors of LLC Belkachinskiy Les-Prom-Khoz (TIN 1428002967, PSRN 1021400894437) (Forestry) have until October 11, 2009, to submit proofs of claims to: G. Gromov Temporary Insolvency Manager Office 113 Kalandarishvili Str. 5 677007 Yakutsk Russia The Arbitration Court of Yakutia will convene on February 11, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No.A 58�8125/08. The Debtor can be reached at: LLC Belkachinskiy Les-Prom-Khoz Belkachi 678673 Ust'-Mayskiy Ulus Yakutia Russia DELTA LLC: Creditors Must File Claims by October 11 --------------------------------------------------- Creditors of LLC Delta (Construction) have until October 11, 2009, to submit proofs of claims to: A. Volobuev Insolvency Manager Office 219 Prospect Kulakova 10D 355044 Stavropol Russia The Arbitration Court of Stavropolskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?63�7398/09-S5�7. EXPERIMENTAL MECHANICAL: Creditors Must File Claims by October 11 ----------------------------------------------------------------- Creditors of CJSC Experimental Mechanical Plant (TIN 7721019392, PSRN 1027700005156) have until October 11, 2009, to submit proofs of claims to: I. Tyazhelov Insolvency Manager Pushkina Str. 19-116 603098 Nizhny Novgorod Russia The Arbitration Court of Nizhegorodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?43�3584/2009, 33�25. The Debtor can be reached at: CJSC Experimental Mechanical Plant Studencheskaya Str. 34V Dzerzhinsk 606016 Nizhegorodskaya Russia GOR-STROY LLC: Creditors Must File Claims by October 11 ------------------------------------------------------- Creditors of LLC Gor-Stroy (TIN 5260117754) (Construction) have until October 11, 2009, to submit proofs of claims to: M. Salnikov Temporary Insolvency Manager Post User Box 136 Dzerzhinsk 606037 Nizhegorodskaya Russia The Arbitration Court of Nizhegorodskaya commenced bankruptcy supervision procedure. The case is docketed under Case No.?43� 15022/2009,27�139. The Debtor can be reached at: LLC Gor-Stroy Novaya Str. 29 603000 Nizhny Novgorod Russia KREMENSKIY DAIRY: Creditors Must File Claims by October 11 ---------------------------------------------------------- Creditors of LLC Kremenskiy Dairy Factory (TIN 4012003885, PSRN 1044003101647) have until October 11, 2009, to submit proofs of claims to: V. Borodavko Insolvency Manager Apt. 44 Suvorova Str. 31 248030 Kaluga Russia The Arbitration Court of Kaluzhskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?23�465/09B-7�29. The Debtor can be reached at: LLC Kremenskiy Dairy Factory Kremenki 74 Medynskiy Kaluzhskaya Russia LOM-PROM-ROSTOV: Creditors Must File Claims by October 11 --------------------------------------------------------- Creditors of LLC Lom-Prom-Rostov (TIN 6155043760, PSRN 1066155046913) (Scrap Processor) have until October 11, 2009, to submit proofs of claims to: S. Lebed Temporary Insolvency Manager Post User Bix 981 344029 Rostov-on-Don Russia The Arbitration Court of Rostovskaya will convene at 2:30 p.m. on January 21, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?53�13234/2009. The Debtor can be reached at: LLC Lom-Prom-Rostov Skvoznoy pereulok 86A Shakhty Rostovskaya Russia METALL MAGNITKI: Creditors Must File Claims by October 11 --------------------------------------------------------- Creditors of CJSC Metall Magnitki (TIN 4501095473, PSRN 1024500521858) (Metal Industry) have until October 11, 2009, to submit proofs of claims to: N. Aleshina Temporary Insolvency Manager Post User Box 114 640000 Kurgan Russia The Arbitration Court of Kurganskaya will convene at 2:00 p.m. on December 9, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?34�4049/2009. The Debtor can be reached at: CJSC Metall Magnitki Omskaya Str. 181a 640007 Kurgan Russia MOLDING TECHNOLIGIES: Creditors Must File Claims by October 11 -------------------------------------------------------------- Creditors of LLC Molding Technologies (TIN 1650129395, PSRN 1051614069385) have until October 11, 2009, to submit proofs of claims to: Yu. Onufrienko Temporary Insolvency Manager Post User Box 2119 Postal Office 61 420061 Kazan Tatarstan Russia The Arbitration Court of Tatarstan will convene on October 1, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No.? 65�4422/2009-SG4�27. The Debtor can be reached at: LLC Molding Technologies Limeks Stroybaza Naberezhnye Chelny Tatarstan Russia OST-STROY LLC: Creditors Must File Claims by October 11 ------------------------------------------------------- Creditors of LLC Ost-Stroy (Construction) have until October 11, 2009, to submit proofs of claims to: O. Voronin Temporary Insolvency Manager Post User Box 68 692525 Ussuriysk Russia The Arbitration Court of Primorskiy will convene on November 25, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?51�9131/2009. The Debtor can be reached at: LLC Ost-Stroy 45 let Oktyabrya Str. 1A Dalnerechensk Primorskiy Russia PINYUG-LES LLC: Creditors Must File Claims by October 11 -------------------------------------------------------- Creditors of LLC Pinyug-Les-Prom (Forestry) have until October 11, 2009, to submit proofs of claims to: Ye. Urvantseva Insolvency Manager Potrebkooperatsii Str. 6 610014 Kirov Russia The Arbitration Court of Kirovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?28�9670/2009�205/24. The Debtor can be reached at: LLC Pinyug-Les-Prom Oktyabrskaya Str. 24 Pinyug Podosinovskiy Kirovskaya Russia SELIVANOVSKIY MACHINE: Creditors Must File Claims by October 11 --------------------------------------------------------------- Creditors of OJSC Selivanovskiy Machine-Building Plant (TIN 3322000064) have until October 11, 2009, to submit proofs of claims to: A.Kislitsyn Temporary Insolvency Manager Proletraskaya Str. 24 Krasnaya Gorbatka Selivanovskiy 602332 Vladimirskaya Russia The Arbitration Court of Vladimirskaya will convene at 2:30 p.m. on December 22, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?11�4646/2009. The Debtor can be reached at: OJSC Selivanovskiy Machine-Building Plant Krasnaya Gorbatka Selivanovskiy 602332 Vladimirskaya Russia STERLITAMAKSKAYA ENGINEERING: Claims Filing Ends October 11 ----------------------------------------------------------- Creditors of CJSC Sterlitamakskaya Engineering Company (TIN 0268036297) have until October 11, 2009, to submit proofs of claims to: O. Vlasenko Temporary Insolvency Manager Post User Box 191 450097 Ufa Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy supervision procedure. The case is docketed under Case No. ?07� 18685/2007. The Debtor can be reached at: CJSC Sterlitamakskaya Engineering Company Gogolya Str. 124 453130 Sterlitamak Bashkortostan Russia The Court is located at: The Arbitration Court of Bashkortostan Oktyabrsloy Revolutsii Str. 63a 450078 Ufa Bashkortostan Russia STROITELNYY MIR: Creditors Must File Claims by October 11 --------------------------------------------------------- Creditors of LLC Stroitelnyy Mir (TIN 2460053206, PSRN 1042401783676, RVC 246601001) (Construction) have until October 11, 2009, to submit proofs of claims to: A. Turovtsev Temporary Insolvency Manager Lesnikov Str. 58/7 660006 Krasnoyarsk Russia The Arbitration Court of Novosibirskaya will convene at 4:00 p.m. on January 12, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?45�14522/2009. The Court is located at: The Arbitration Court of Novosibirskaya Courtroom 718 Nizhegorodskaya Str. 6 Novosibirsk Russia The Debtor can be reached at: LLC Stroitelnyy Mir Voinskaya Str. 63/601 630039 Novosibirsk Russia STROY-COMPANY LLC: Creditors Must File Claims by October 11 ----------------------------------------------------------- Creditors of LLC Stroy-Company (TIN 6231058922, PSRN 1036208016250) (Construction) have until October 11, 2009, to submit proofs of claims to: N. Pisarenko Temporary Insolvency Manager B. Tishinskiy Pereulok 38 123557 Moscow Russia The Arbitration Court of Ryazanskaya will convene at 11:45 a.m. on December 1, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?54�2461/2009 S19. The Debtor can be reached at: LLC Stroy-Company Building 1 Chapaeva Str. 57 390000 Ryazan Russia STROY-FINANS LLC: Creditors Must File Claims by October 11 ---------------------------------------------------------- Creditors of LLC Stroy-Finans (Construction) have until October 11, 2009, to submit proofs of claims to: V. Mishinu Temporary Insolvency Manager Office 805 Selmash prospect 90A/17B 344029 Rostov-on-Don Russia The Arbitration Court of Rostovskaya will convene at 10:40 a.m. on November 12, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?53�10682/2009. The Debtor can be reached at: LLC Stroy-Finans Proletarskaya Str. 8 Shakhty 346500 Rostovskaya Russia UNITY RE: S&P Changes Outlook to Positive; Affirms 'BB-' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its outlook on Moscow-based reinsurer Unity Re to positive from stable. The 'BB-' long-term counterparty credit and insurer financial strength ratings and 'ruAA-' Russia national scale rating were affirmed. "The ratings reflect the company's improving competitive position, good capitalization, strong results from insurance business, and good quality of investment portfolio instruments," said Standard & Poor's credit analyst Victor Nikolskiy. These positive factors are partly offset by the high industry risk of operating in the Russian Federation (foreign currency BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia national scale 'ruAAA'), combined with Unity Re's small size and still-limited franchise, and its volatile concentrations and high currency risk in the investment portfolio The positive outlook reflects S&P's expectation that Unity Re will further enhance its competitive position through growth in premiums and number of risks and greater portfolio diversification while maintaining good levels of operating performance. S&P would also expect Unity Re's risk-based capital adequacy to stay at least at a very strong level, reflecting limited risk appetite both in insurance and investments. "We would consider positive rating actions if the company further strengthens its competitive advantages while delivering consistently good operating performance, as well as maintaining very strong risk-based capital adequacy and a good-quality investment portfolio," said Mr. Nikolskiy. S&P would consider revising the outlook to stable if the company's competitive advantages, earnings, capitalization, or investment portfolio quality deteriorate. URAL LLC: Creditors Must File Claims by October 11 -------------------------------------------------- Creditors of LLC Ural (TIN 5904015585, PSRN 1025900892940) (Construction) have until October 11, 2009, to submit proofs of claims to: V. Grachev Temporary Insolvency Manager Office 412 Lenina Str. 9 614000 Perm Russia The Arbitration Court of Permskiy will convene at 11:10 a.m. on January 20, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?50�17000/2009. The Debtor can be reached at: LLC Ural Luganskaya Str.2 614089 Perm Russia UYARSKIY CONSTRUCTION: Creditors Must File Claims by October 11 --------------------------------------------------------------- Creditors of LLC Uyarskiy Construction Fininshing Materials Plant have until October 11, 2009, to submit proofs of claims to: S .Khizhnenko Temporary Insolvency Manager Sovetskaya Str. 77 Partizanskoe Partizanskiy 663540 Krasnoyarskiy Russia Tel: 83914021035 The Arbitration Court of Krasnoyarskiy will convene at 10:00 a.m. on November 27, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?33�7864/2009. The Court is located at: The Arbitration Court of Krasnoyarskiy Courtroom 503 Krasnyy Prospect 184 630049 Novosibirsk Russia The Debtor can be reached at: LLC Uyarskiy Construction Fininshing Materials Plant Gorkogo Str. 33 Uyar 663520 Krasnoyarskiy Russia VOLGO-STROY LLC: Creditors Must File Claims by October 11 --------------------------------------------------------- Creditors of LLC Volgo-Stroy-Kompleks (TIN 3435701751, RVC 343501001, PSRN 1093435002869) (Construction) have until October 11, 2009, to submit proofs of claims to: D. Pishavka Insolvency Manager Karbysheva Str. 105-35 404132 Volzhskiy Russia The Arbitration Court of Volgogradaskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?12�14310/2009. The Debtor can be reached at: LLC Volgo-Stroy-Kompleks Pushkina Str. 57 404120 Volzhskiy Russia VYBORGSKAYA SHIPPING: Creditors Must File Claims by October 11 -------------------------------------------------------------- Creditors of LLC Vyborgskaya Shipping Company (PSRN 1077847439185)have until October 11, 2009, to submit proofs of claims to: I. Babenko Temporary Insolvency Manager Post User Box 6 194214 Saint-Petersburg Russia The Arbitration Court of Saint-Petersburg will convene on January 18, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?56�30810/2009. The Debtor can be reached at: LLC Vyborgskaya Shipping Company BolshoySampsonievskiy prospect 57/2 Saint-Petersburg Russia * SAKHA REPUBLIC: Fitch Affirms 'BB' Currency Ratings ----------------------------------------------------- Fitch Ratings has affirmed the Russian Republic of Sakha's (Yakutia) Long-term foreign and local currency ratings at 'BB' respectively, while affirming the region's Short-term foreign currency rating at 'B'. The agency has also affirmed its National Long-term rating at 'AA-(rus)'. All the Long-term rating Outlooks are Stable. The ratings reflect the region's sound budgetary performance, stable direct debt and smooth debt profile. However, the ratings also take into account the region's large public sector and concentration of the local economy in prime natural resource extraction. The Stable Outlook reflects Fitch's expectation that the Republic of Sakha (Yakutia) will be able to report an operating margin of 7%-8% at end-2009, while containing its contingent liabilities at a manageable level. The region recorded a sound 10.2% operating margin in 2008, supported by tax revenues and federal transfers. In H109 decreased tax revenues were offset by federal transfers, thus stabilizing the region's budgetary performance. Sakha's capex increased to 14.3% of the total expenditure by end-2008, leading it to post a moderate deficit before debt variation of RUB0.9 billion. Domestic bonds composed 88.5% of the region's direct risk, and in 2008 amounted to RUB9.1 billion, with maturities stretching to 2014. The direct risk payback ratio stabilized in 2007-2008 at 1.7 years of the current balance. The region's refinancing needs on bonds amortizing in Q409 are covered in full by the federal budget loan received in August 2009. The region's economy remains exposed to price shocks and demand drop due to its concentration in the extraction of natural resources, particularly diamonds. In H208 and Q109 the global financial crisis negatively affected the region's diamond mining industry, leading to a 6.6% yoy drop in industrial output in H109. However, rapid development of oil and gas projects in the region reduced tax base concentration and provided greater tax payments in 2008. The republic's remoteness, under-developed infrastructure and severe climate significantly constrain commercial development, causing the region to support a large broad public sector. In most cases, operations of public companies make up for the shortage of regular commercial activities and are subject to strict control aimed at maintaining their solvency. The Republic of Sakha (Yakutia) is Russia's largest region with rich deposits of prime natural resources, located in the far eastern part of the country. Sakha's 951,000 people account for 0.7% of the national population and the region contributes 0.9% of the national GDP. =============== S L O V E N I A =============== MURA D.D.: May Be Declared Bankrupt Amid Mounting Debts ------------------------------------------------------- Mura d.d. may be declared bankrupt and a newly restructured company maybe created in its wake after failing to deal with mounting debts, just-style reports. Based in the northeastern town of Murska Sobota, Mura d.d. is Slovenia's largest textile manufacturer. It employs about 3,300 people. PREVENT PUR: Launches Insolvency Proceedings -------------------------------------------- STA reports that Slovenian car seat upholstery maker Prevent PUR has launched insolvency proceedings after the company's two major owners failed to agree on a rescue plan at a shareholders meeting last week. The Slovenj Gradec District Court told STA that it received on Wednesday the documents filed by one of the company's executives. STEKLARSKA NOVA: State to Pay Pension Contributions of Workers -------------------------------------------------------------- STA reports that Slovenian Prime Minister Borut Pahor on Sept. 22 said the state will pay contributions for pension and disability insurance of former Steklarska nova glassworks workers. The company, which has been undergoing receivership proceedings, failed to pay the contributions for the last five years, the report says. ========= S P A I N ========= BBVA FINANZIA: S&P Downgrades Rating on Class C Notes to 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services took various actions on all the notes issued by BBVA Autos 2, Fondo de Titulizacion de Activos and BBVA Finanzia Autos 1, Fondo de Titulizacion de Activos. In BBVA Autos 2 FTA, S&P: * Lowered and removed from CreditWatch negative its rating on the class C notes; and * Affirmed its ratings on classes A and B. In BBVA Finanzia Autos 1 FTA, S&P: * Lowered and kept on CreditWatch negative its rating on the class C notes; * Kept the class B notes on CreditWatch negative; and * Placed the class A notes on CreditWatch negative. The rating actions follow S&P's review of the deals' performance. In each transaction, the issuer drew on the cash reserve again on the last interest payment date and current reserve fund levels are significantly lower than the outstanding balance of loans in arrears for more than 90 days. As a consequence, these deals are widely exposed to the rollover risk that a large portion of severe arrears may become defaults in the short to medium term. Those events may force further draws on reserve funds and subsequently decrease credit enhancement. Both structures feature a structural mechanism to provision for defaults so that the notes amortize for an amount equal to the outstanding balance of new defaults. S&P expects defaults to increase due to the negative effect of the high Spanish unemployment rate, a primary factor behind consumer deals' performance. Bbva Autos 2 Fta BBVA Autos 2 FTA closed in December 2005 and the revolving period ended two years after closing, as scheduled. The fund defined a loan in arrears for more than 12 months as defaulted. In August 2009, loans in arrears for more than 90 days (and not yet defaulted) comprised EUR14.89 million, representing 2.82% of the current pool. The cash reserve is 2.73% of the outstanding note balance. The issuer drew on the reserve on the May and August IPDs -- on the latter, by EUR1.17 million. Increasing defaults have kept eroding excess spread supplied by the 300 basis point swap guaranteed margin. Higher cumulative defaults increase the probability of deferral of interest payments on the junior notes. The class C notes' interest payment will be postponed if cumulative defaults are more than 10% of the original balance. As of August, they reached 3.61% of the original balance. S&P conducted a credit and cash flow analysis of BBVA Autos 2 FTA, taking into consideration the effect of the current Spanish economic outlook on S&P's default rate assumptions. This showed that the credit enhancement available for the class C notes in this transaction is not sufficient to maintain the current ratings. Bbva Finanzia Autos 1 Fta BBVA Finanzia Autos 1 FTA closed in April 2007 and its revolving period ended in April 2008, one year ahead of the scheduled date, because the delinquency rate was higher than the trigger threshold level. Defaults are defined as arrears of more than 12 months. As of August 2009, arrears between 90 days and one year comprised 4.48% of the outstanding pool, compared with a cash reserve of 1.30% of the current note balance. On the July IPD the issuer drew on the cash reserve for the third subsequent time, by EUR3.47 million. As of July 2009, cumulative defaults were 3.25% of the original balance, more than double the March value of 1.53%. Interest payments on the class C notes will be postponed if written-off loans are more than 8.5% of the original balance. After a credit and cash flow analysis of BBVA Finanzia Autos 1 FTA, S&P assessed that the current credit enhancement available for class C is not sufficient to maintain the current ratings. At the same time, the results of S&P's analysis show that the ratings assigned to all the notes could be negatively affected if increasing defaults keep on rising at this high pace. After the next IPD in October 2009 (and upon receiving updated information), S&P will review whether credit enhancement levels for each class are still sufficient to support the current ratings. Banco Bilbao Vizcaya Argentaria, S.A., originated the pool backing BBVA Autos 2 FTA. BBVA Finanzia 1 FTA's pool was originated by Finanzia Banco de Credito S.A., the consumer finance arm of BBVA. Ratings List BBVA Autos 2, Fondo de Titulizacion de Activos EUR1 Billion Floating-Rate Asset-Backed Notes Rating Lowered and Removed From Creditwatch Negative Rating ------ Class To From ----- -- ---- C BBB+ A/Watch Neg Ratings Affirmed Class Rating ----- ------ A AAA B AA- BBVA Finanzia Autos 1, Fondo de Titulizacion de Activos EUR800 Million Asset-Backed Floating-Rate Notes Rating Lowered and Kept on Creditwatch Negative Rating ------ Class To From ----- -- ---- C BB/Watch Neg BBB/Watch Neg Rating Kept on Creditwatch Negative Rating ------ Class To From ----- -- ---- B A/Watch Neg A/Watch Neg Rating Placed on Creditwatch Negative Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA =========== S W E D E N =========== SWEDBANK AB: Fitch Affirms and Withdraws All Ratings ---------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn Swedbank AB's ratings and those of its subsidiaries Swedbank Mortgage AB, Estonia-based Swedbank AS, Swedbank AS (Latvia), Swedbank AB (Lithuania) and Russia-based OAO Swedbank. Fitch will no longer provide ratings or analytical coverage of Swedbank and the entities of the Swedbank group. The agency has withdrawn rating coverage as the public information and disclosure available to Fitch are considered insufficient to maintain rating coverage. The affirmation of the ratings prior to their withdrawal was based on Fitch's view that the issuer has the capacity to absorb further material deterioration in its eastern European exposure, mainly in the Baltics, and some deterioration in its domestic book, assisted by the expected SEK15bn of fresh capital from the rights issues announced in August 2009. The ratings of Swedbank and the group's entities at the time of withdrawal are: Swedbank AB -- Long-term Issuer Default Rating affirmed at 'A'; Stable Outlook; withdrawn -- Short-term IDR affirmed at 'F1' and withdrawn -- Individual Rating affirmed at 'B/C' and withdrawn -- Support Rating affirmed at '1' and withdrawn -- Support Rating Floor affirmed at 'A-' and withdrawn -- Senior unsecured debt affirmed at 'A' and withdrawn -- Guaranteed notes: Long-term affirmed at 'AAA' and Short-term affirmed at 'F1+' and withdrawn -- Subordinated debt: affirmed at 'A-' and withdrawn -- Hybrid notes affirmed at 'BBB+' and withdrawn Swedbank Mortgage -- Long-term IDR affirmed at 'A+'; Stable Outlook; withdrawn -- Short-term IDR affirmed at 'F1' and withdrawn -- Individual Rating affirmed at 'B' and withdrawn -- Support Rating affirmed at '1' and withdrawn -- Guaranteed notes: Long-term affirmed at 'AAA' and Short-term affirmed at 'F1+' and withdrawn -- Senior unsecured debt affirmed at 'A+' and withdrawn -- Subordinated debt affirmed at 'A' and withdrawn -- Commercial paper affirmed at 'F1' and withdrawn Swedbank AS (Estonia) -- Long-term IDR affirmed at 'A-'; Stable Outlook; withdrawn -- Short-term IDR affirmed at 'F2' and withdrawn -- Individual Rating affirmed at 'D/E' and withdrawn -- Support Rating affirmed at '1' and withdrawn -- Senior unsecured debt affirmed at 'A-' and withdrawn -- Commercial paper affirmed at 'F2' and withdrawn Swedbank AS (Latvia) -- Support Rating of '2'; Rating Watch Negative; withdrawn Swedbank AB (Lithuania) -- Support Rating affirmed at '1' and withdrawn OAO Swedbank (Russia) -- Long-term IDR affirmed at 'BBB+'; Negative Outlook; withdrawn -- Short-term IDR affirmed at 'F2' and withdrawn -- Individual Rating affirmed at 'D/E' and withdrawn -- Support Rating affirmed at '2' and withdrawn -- National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable; withdrawn ===================== S W I T Z E R L A N D ===================== BAHAG HOLDING: Claims Filing Deadline is October 7 -------------------------------------------------- Creditors of Bahag Holding GmbH are requested to file their proofs of claim by October 7, 2009, to: Bahag Holding GmbH Blumenweg 6 4144 Arlesheim Switzerland The company is currently undergoing liquidation in Arlesheim. The decision about liquidation was accepted at a shareholders' meeting held on August 14, 2009. BAROSOFT AG: Claims Filing Deadline is October 7 ------------------------------------------------ Creditors of Barosoft AG are requested to file their proofs of claim by October 7, 2009, to: Josef Husner Liquidator Weidstrasse 10 8800 Thalwil Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting held on July 2, 2009. BCT SERVICES: Claims Filing Deadline is October 7 ------------------------------------------------- Creditors of Bct Services AG are requested to file their proofs of claim by October 7, 2009, to: Bct Services AG Liquidator Chamerstrasse 172 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting held on July 17, 2009. BEXYTOL AG: Claims Filing Deadline is October 7 ----------------------------------------------- Creditors of Bexytol AG are requested to file their proofs of claim by October 7, 2009, to: Bexytol AG Alpenstrasse 15 6304 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at a general meeting held on July 21, 2009. ETABLISSEMENTS RAMUZ: Claims Filing Deadline is October 7 --------------------------------------------------------- Creditors of Etablissements Ramuz et Garage Edelweiss AG are requested to file their proofs of claim by October 7, 2009, to: Barbara Eggenberger Fabrikstrasse 50 8031 Zurich Switzerland The company is currently undergoing liquidation in Lausanne. The decision about liquidation was accepted at an extraordinary general meeting held on March 19, 2009. H. HAYDA: Claims Filing Deadline is October 7 --------------------------------------------- Creditors of H. Hayda Taxi GmbH are requested to file their proofs of claim by October 7, 2009, to: H Zilfo Dogan Talackerstr. 21 4153 Reinach Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on August 18, 2009. MOBATEX AG: Claims Filing Deadline is October 12 ------------------------------------------------ Creditors of Mobatex AG are requested to file their proofs of claim by October 12, 2009, to: Oliver Untersander Asylstrasse 77 8032 Zurich Switzerland The company is currently undergoing liquidation in Opfikon. The decision about liquidation was accepted at a general meeting held on June 10, 2009. SWISS PERFORMEX: Claims Filing Deadline is November 11 ------------------------------------------------------ Creditors of Swiss Performex (Swipex) AG are requested to file their proofs of claim by November 11, 2009, to: Eveline Boesch Delphinweg 17 5616 Meisterschwanden Switzerland The company is currently undergoing liquidation in Thalwil. The decision about liquidation was accepted at an extraordinary general meeting held on June 18, 2009. VALUELOGIC GMBH: Claims Filing Deadline is October 16 ----------------------------------------------------- Creditors of ValueLogic GmbH are requested to file their proofs of claim by October 16, 2009, to: ValueLogic GmbH Pasteurstrasse 9 9016 St. Gallen Switzerland The company is currently undergoing liquidation in St. Gallen. The decision about liquidation was accepted at a shareholder�s meeting held on June 29, 2009. ============= U K R A I N E ============= ANTARKTIKA TOURIST: Creditors Must File Claims by October 8 ----------------------------------------------------------- Creditors of LLC Antarktika Tourist (code EDRPOU 31082062) have until October 8, 2009, to submit proofs of claim to V. Pustovalov, the company's insolvency manager. The Economic Court of Odessa commenced bankruptcy proceedings against the company on August 28, 2009. The case is docketed under Case No. 7/314-09-3995. The Court is located at: The Economic Court of Odessa Shevchenko Ave. 29 65032 Odessa Ukraine CONCORD LLC: Creditors Must File Claims by October 8 ---------------------------------------------------- Creditors of LLC Concord (code EDRPOU 32117986) have until October 8, 2009, to submit proofs of claim to V. Dontsov, the company's insolvency manager. The Economic Court of Odessa commenced bankruptcy proceedings against the company on August 28, 2009. The case is docketed under Case No. 7/313-09-3994. The Court is located at: The Economic Court of Odessa Shevchenko Ave. 29 65032 Odessa Ukraine DALLAS-INK LLC: Creditors Must File Claims by October 7 ------------------------------------------------------- Creditors of LLC Dallas-Ink (code EDRPOU 31855520) have until October 7, 2009, to submit proofs of claim to: M. Zvezdichev Insolvency Manager Office 16 Shevchenko Blvd. 132 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company on August 11, 2009. The case is docketed under Case No. 01/1959. The Court is located at: The Economic Court of Cherkassy Shevchenko Blvd. 307 18004 Cherkassy Ukraine The Debtor can be reached at: LLC Dallas-Ink Office 256 Heroes of Dnepr Str. 45 18000 Cherkassy Ukraine NAFTOGAZ: Misses Payment on Eurobonds; Nears Restructuring Deal --------------------------------------------------------------- Zijing Wu and Kateryna Choursina at Bloomberg News report that NJSC Naftogaz of Ukraine on Wednesday missed a principal payment on Eurobonds. Bloomberg relates Naftogaz said in an e-mailed statement yesterday that While the company has paid interest on the US$500 million of Eurobonds due Wednesday, payment of the principal is subject to a proposed exchange for longer-dated debt. Bloomberg recalls Ukraine's acting Finance Minister Ihor Umanskyi said this week Naftogaz is offering US$1.65 billion of new debt in exchange for the Eurobonds and US$1.15 billion of outstanding loans. As reported in the Troubled Company Reporter-Europe on Sept. 28, 2009, Bloomberg, citing a company statement, said the bonds due 2014 will pay annual interest at 9.5% and have an "unconditional and irrevocable sovereign guarantee." Bloomberg disclosed Ukrainian President Viktor Yushchenko said Naftogaz lacks finances to repay its debt in part because it was unable to negotiate higher tariffs for Russian gas shipments to Europe. The government told Naftogaz to complete talks with investors and creditors by Oct. 20. The Cabinet said in a decree published last week the government agreed to provide the company with a US$2 billion debt guarantee, according to Bloomberg. Debt Restructuring Roman Olearchyk at The Financial Times reports that Naftogaz is close to convincing note holders to accept the company's debt restructuring offer which is needed to avoid default. According to the FT, Belize-registered Corlblow said that "following frank discussions" with Naftogaz, it "ceases its opposition to the proposed restructuring." "We are conducting meetings with our creditors and frankly I am convinced that our proposal will be accepted," the FT qouted Oleh Dubyna, Naftogaz�s chief, as saying on Wednesday during a visit to London for talks with creditors. "We already have some positive feedback from some banks, so I think everything will be fine.� The company is seeking to restructure nearly US$1.7 billion in near-term foreign debt, the FT states. About NJSC Naftogaz of Ukraine Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine -- http://www.naftogaz.com/-- is a vertically integrated oil and gas company engaged in full cycle of operations in gas and oil field exploration and development, production and exploratory drilling, gas and oil transport and storage, supply of natural gas and LPG to consumers. * * * As reported in the Troubled Company Reporter-Europe on June 2, 2009, Moody's Investors Service downgraded to Caa1 from B2, the foreign currency corporate family rating, and probability of default and debt ratings of NJSC Naftogaz of Ukraine. Moody's said the outlook on the ratings was changed to negative. PIATIKHATKI BUTTER: Creditors Must File Claims by October 7 ----------------------------------------------------------- Creditors of LLC Piatikhatki Butter Plant (code EDRPOU 33116103) have until October 7, 2009, to submit proofs of claim to: A. Megeria Insolvency Manager Office 2 Bekhterevsky Lane 4-A Kiev Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on August 20, 2009. The case is docketed under Case No. B24/304-09. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev Str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Piatikhatki Butter Plant Rabochaya Str. 77 Dnepropetrovsk Ukraine SERVICE KO: Creditors Must File Claims by October 7 --------------------------------------------------- Creditors of LLC Service Ko (code EDRPOU 35571687) have until October 7, 2009, to submit proofs of claim to: V. Filatov Insolvency Manager Office 141 Marshal Konev Str. 9 03191 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 26, 2009. The case is docketed under Case No. 49/315-b. 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 Service Ko Tchokolovsky Blvd. 19 03186 Kiev Ukraine SVITEKS LLC: Creditors Must File Claims by October 4 ---------------------------------------------------- Creditors of LLC Sviteks (code EDRPOU 32765758) have until October 4, 2009, to submit proofs of claim to: LLC Legal Company Aleks Vik Insolvency Manager N. Vasilenko Str. 7-A 03124 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 5, 2009. The case is docketed under Case No. 15/370-b. 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 Sviteks Vozdukhoflotsky Ave. 92-b 03036 Kiev Ukraine TRADING AND BUILDING: Bankruptcy Supervision Procedure Starts ------------------------------------------------------------- The Economic Court of Zaporozhye commenced bankruptcy supervision procedure on LLC Trading and Building Company (code EDRPOU 33700890). The Insolvency Manager is: R. Zagriy Office 73 14th of October Str. 9 69123 Zaporozhye Ukraine The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: LLC Trading and Building Company Office 78 Doroshenko Str. 6 69124 Zaporozhye Ukraine UNITRANS LLC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Economic Court of Odessa commenced bankruptcy supervision procedure on LLC Unitrans (code EDRPOU 34252872). The company's insolvency manager is O. Shashkevich. The Court is located at: The Economic Court of Odessa Shevchenko Ave. 29 65032 Odessa Ukraine The Debtor can be reached at: LLC Unitrans Office 50 Lustdorf Road Str. 168, b. 1 65133 Odessa Ukraine ZHMERINKA BUTTER: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Economic Court of Vinnitsa commenced bankruptcy supervision procedure on LLC Zhmerinka Butter and Cheese Plant (code EDRPOU 30580812). The Insolvency Manager is: O. Boyko Kozitsky Str. 46 Vinnitsa Ukraine The Court is located at: The Economic Court of Vinnitsa Hmelnitsky Highway 7 21100 Vinnitsa Ukraine The Debtor can be reached at: LLC Zhmerinka Butter and Cheese Plant Mir Str. 33 Zhmerinka 23100 Vinnitsa Ukraine =========================== U N I T E D K I N G D O M =========================== BLACKS LEISURE: Closes 89 Loss Making Stores; Mulls 50 Job Cuts --------------------------------------------------------------- Blacks Leisure Group plc has begun the closure and employee consultation process on 89 loss making stores whose performance has been a considerable drag on the core outdoor business which has traded successfully over the last two years. The company said the vast majority of the stores to be closed have not traded profitably for many years. It will now enter into a period of consultation with employees at its Northampton head office regarding the reduction of approximately 50 roles, representing about 20% of the total head office workforce. Blacks said while it is highly regrettable that the company is having to take these steps, both actions will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the current restructuring process. However, further restructuring is still required to satisfy the condition to a standstill agreement, which the company continues to develop with its advisers, KPMG. On September 22, 2009, Blacks announced that it had agreed a standstill with its lender, Lloyds Banking Group, in respect of an expected covenant breach at the end of September. The standstill agreement was subject to the company delivering a restructuring plan acceptable to the company's bank, Lloyds, which included an exit of the company's loss making stores. As a first step in that restructuring plan, the company announced on September 23, 2009 that Sandcity, part of the Boardwear division, had been placed in administration. About Blacks Leisure Headquartered in Northampton, Blacks Leisure Group plc -- http://www.blacksleisure.co.uk/-- is the parent company of its subsidiaries, which are engaged in the retail and wholesale of clothing and camping equipment. The Company comprises two segments: Outdoor and Boardwear. Outdoor trades under the fascias Blacks and Millets. The trade is from retail stores in the British Isles, and the associated direct sale Internet sites. Boardwear holds the United Kingdom licenses for O'Neill and Mambo products to trade as a wholesale operation and from retail stores. The stores retail brands are Peter Storm and Eurohike. Other brands sold include Berghaus, North Face, Merrell, Coleman, Karrimor, Hi-Tec, Columbia and Craghoppers. The Company's subsidiaries include Blacks Outdoor Division Ltd, The Outdoor Group Ltd and Sandcity Ltd. BRITISH AIRWAYS: To Finalize Iberia Merger by Year's End -------------------------------------------------------- Pilita Clark and Gerrit Wiesmann at The Financial Times report that British Airways plc has a chance of finalizing its proposed merger with Iberia before the end of the year. The FT relates Willie Walsh, BA's chief executive, said talks with Iberia to form Europe's third-largest airline, first announced in July last year, had gone on too long but progress was being made and a deal by the year's end was possible "with a fair wind". Mr. Walsh reiterated BA would not accept a stake of less than 53% in a merged company, the FT states. Survival David Roberton at The Times reports that Mr. Walsh has signaled that the immediate crisis facing the airline has receded and it is no longer in a "fight for survival". "I think we have done what needed to be done to address the immediate crisis we faced. Strengthening our cash position was a critical issue and we are taking the right steps to profitability. The situation is no longer as critical," the Times quoted Mr. Walsh as saying. The Times recalls Mr. Walsh warned in June that BA faced a fight for survival after the carrier lost GBP401 million the previous year and was burning through cash reserves at about GBP1 million a day. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on July 13, 2009, Moody's Investors Service lowered the Corporate Family and Probability of Default Ratings of British Airways plc to Ba3; the senior unsecured and subordinate ratings have been lowered to B1 and B2, respectively. Moody's said the outlook is stable. BUSINESS MORTGAGE: Moody's Cuts Rating on Class B2 Notes to 'B3' ---------------------------------------------------------------- Moody's Investors Service has taken these rating actions on Notes issued by Business Mortgage Finance No. 6 plc (amounts reflecting original Note amounts): -- GBP106 million Class A1 Mortgage Backed Floating Rate Notes due 2040, downgraded to Aa1; previously on 23 April 2009 Aaa placed under review for possible downgrade; -- EUR400.7 million Class A2 Mortgage Backed Floating Rate Notes due 2040, downgraded to Aa1; previously on 23 April 2009 Aaa placed under review for possible downgrade; -- GBP38 million Class M1 Mortgage Backed Floating Rate Notes due 2040, downgraded to Ba1; previously on 23 April 2009 A2 placed under review for possible downgrade; -- EUR55.6 million Class M2 Mortgage Backed Floating Rate Notes due 2040, downgraded to Ba1; previously on 23 April 2009 A2 placed under review for possible downgrade; -- EUR39.1 million Class B2 Mortgage Backed Floating Rate Notes due 2040, downgraded to B3; previously on 23 April 2009 Ba1 placed under review for possible downgrade; -- Detachable A1 Coupons, downgraded to Aa1; previously on 23 April 2009 Aaa placed under review for possible downgrade; -- Detachable A2 Coupons, downgraded to Aa1; previously on 23 April 2009 Aaa placed under review for possible downgrade. The ratings of the Mortgage Early Redemption Certificates, are affirmed at Aaa. In total, approximately GBP483 million of CMBS bonds were affected by the downgrade actions. Moody's does not rate the Class C Notes issued by BMF6. As described under sub-heading 3, "Rating Rationale", the action taken has been due to Moody's revising its expected loss projection for the transaction as a whole. 1) Transaction Overview Business Mortgage Finance No. 6 plc represents the sixth true-sale securitisation by UK lender Commercial First of a pool initially comprising 2,241 loans, mainly to individuals and secured by first-ranking mortgages over mixed-use commercial properties across the UK. The transaction features 8 classes of Notes, of which the Class C is not rated by Moody's. The floating rate notes are issued in both Euros and in GBP, while the underlying loans are 100% GBP denominated. The transaction has (i) hedging to mitigate basis risk, interest rate risk, and cross-currency risk between the underlying loan contracts and the Notes; (ii) a liquidity facility of GBP50 million; and (iii) a cash reserve fund, currently with an available balance of GBP6.85 million and a target balance of GBP21.25 million. The transaction is now amortising principal sequentially; however pro-rata amortisation of the Notes is permitted when certain performance related tests have been met. 2) Transaction Performance History Moody's has observed arrears rates increasing in the pool since closing. At the August 2009 payment date, 35.1% of the pool was in arrears by at least one full installment. GBP112.1 million or 26.8% of the pool was 3 or more months scheduled monthly payments late, and all of such loans were classed as being "in litigation". For 139 loans litigation was in the initial stages, for 139 loans a possession order had been obtained and for 88 loans the properties were already in the possession of the servicer. In total 51 loans in the pool, with an original balance of GBP12.4 million have suffered a loss, and cumulative losses have been GBP4.38 million. The principal balance of loans with losses as a proportion of the pool represents 2.97% of total current loan principal balance and 2.48% of aggregate original principal balance. Losses as a proportion of the current pool balance are 1.05% and of the original pool balance are 0.88%. Parts of these losses have been absorbed by excess spread. The total amount of excess spread reported to have absorbed losses since closing was GBP2.2 million. The un-absorbed losses were met by deductions to the reserve fund, and no principal deficiency balance has been recorded on any class of Notes so far. Loans which are in arrears are, on average, still paying part of their installment, which explains why excess spread has been able to absorb losses while delinquency rates have been significant. Moody's analysis of the monthly payment history between April 2008 and April 2009 of the loans in the pool has indicated that the current trend for loans, on average, is to become more delinquent. Excluding arrears of less than GBP250, of the loans which were in arrears in April 2008, 77.8% became more delinquent in terms of the absolute amount owed by April 2009. In contrast, 11.4% prepaid out of arrears, and a further 10.8% managed to reduce the delinquent amount by at least one pound. However, during this period, there were several new cases of loans becoming delinquent; a total of 23.1% of the loan balance as at April 2008 was affected. 3) Rating Rationale The rating action on the affected Notes was prompted by these factors: (i) the higher than expected arrears levels and the lower than expected build up in the reserve fund compared with Moody's expectations at closing; and (ii) Moody's concerns about continuing falling real estate values and a challenging economic backdrop for small businesses across the country. Long-term affordability of the loans and the achievable sales prices upon loan foreclosure are expected to be impaired for the foreseeable future. As mentioned in section 2 above, despite relatively high arrears levels, the collection activity of the servicer has allowed a proportion of losses to be absorbed so far. Hence in its analysis, Moody's considered the historical collection performance of the servicer, when re-assessing the ratings of the sub- investment grade classes of Notes. In particular the Class B ratings will remain sensitive to the performance of the servicer in maintaining or improving its collection rates over time. Moody's rating action on the Class A Detachable Coupons has been due to Moody's expectation that scenarios in which the ratings of the Class A Notes would be impacted, would also impact on the payment promise towards the Class A Detachable Coupons. The MERC Notes were affirmed, as Moody's has not altered its view of the ability of the Issuer to pass on early redemption fees to MERC Note holders. The analysis for the ratings of the Notes as a whole was based on an updated poolcut and the recent performance history of each loan. Moody's analysis concluded that the expected future default rate in the pool is now both higher than at closing and more front-loaded than was anticipated at closing. The expectation of front loaded default rates is due to the general economic backdrop for this sector (negative outlook over the next few years), combined with a lack of / reduction in availability of credit. Losses upon default were also rebased, by considering what would be the likely achievable sales price in the event of a forced sale over the next two to six years. Commercial and residential property values across the UK have fallen significantly in recent times and Moody's expects only moderate recovery by 2011. Moody's estimates that the value of the properties securing this transaction have declined by 35-55% since the properties were last valued, depending on the particular location and quality of the real estate asset concerned. This means that, with average pool LTVs of 69.2% (the loan balance is updated, valuations are not updated and are from 2006 to 2007) and after senior expenses, losses are likely to materialize in the expected case if the defaulted loans would be enforced on September 30. Therefore, Moody's believes that the servicer's strategy going forwards will be to delay enforcement where possible, as a strategy to maximize future loan recoveries by continuing to make collections, even partially, in the near term. 4) Moody's Portfolio Analysis As at the August 2009 interest payment date, the most common property type in the pool was a mixed-use commercial property, with a commercial use unit on the ground floor, and a flat or maisonette for residential use situated directly above it. However, the types of properties in the pool are very diverse: comprising everything from farmland to health clinics. The top 3 regional concentrations by loan current balance in August 2009 were: 19% South East, 14.6% South West and 9.5% North West. Wales represented 9% and Greater London represented 8.6%. There were no significant borrower concentrations in the pool, and the loan Herfindahl Index was over 500. In terms of loan characteristics, as of August 2009, 77.8% are Libor-linked floating rate loans, while 22.2% are fixed rate for a period ending not after July 2010 whereupon they revert to a Libor-linked floating rate of interest. All loans amortize in full, to mature on average by August 2033. The average loan size as of August 2009 was GBP224,605 and the average LTV 69% based on values as of origination. The average loan margin at end April 2009 was 3.67%. CEVA GROUP: S&P Assigns 'CCC' Rating on US$200 Mil. Secured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'CCC' debt rating to the proposed US$200 million secured notes to be issued by CEVA Group PlC. (CCC+/Stable/--), the holding company of Dutch logistics group, CEVA Ltd. The secured notes will benefit from the same guarantee structure as the issuer's senior secured credit facilities. At the same time, S&P assigned a recovery rating of '5' to this debt, indicating S&P's view of modest (10%-30%) recovery for creditors in the event of a payment default. S&P anticipates that the new notes will rank senior in lien priority to the existing second-lien notes also issued by CEVA and junior in lien priority to the group's existing senior secured first-lien facilities. In addition, S&P affirmed the issue rating on the senior secured facilities issued by CEVA at 'B-', one notch higher than the corporate credit rating. The recovery rating on these facilities is unchanged at '2', indicating S&P's expectation of substantial recovery (70%-90%) for senior secured lenders in the event of a payment default. S&P also affirmed the 'CCC' issue rating on CEVA's second-lien and unsecured notes. The recovery rating of '5' on these debt instruments is unchanged, indicating S&P's expectation of modest (10%-30%) recovery for creditors in the event of a payment default. Finally, the company's senior subordinated notes due 2016 remain at 'CCC-,' two notches below the corporate credit rating, with a recovery rating of '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. The rating on the proposed notes is one notch lower than S&P's corporate credit rating on CEVA. It is based on preliminary information and is subject to S&P's satisfactory review of the final documentation. The recovery and issue ratings could be subject to further review if the amount or terms of the bond were to change. In S&P's simulated scenario, recovery expectations for the proposed senior secured notes are based on their claim on unpledged assets, on which they share a pari passu claim with any unsatisfied portion of CEVA's outstanding first-lien facilities, second-lien notes, and unsecured notes. The ratings on CEVA are constrained by its highly leveraged financial profile, weak cash flow generation, and aggressive financial policy. In S&P's view, the weak trading environment and uncertainty over the timing of recovery could place further pressure on the group's financial profile. As a result, S&P cannot exclude future debt exchange offers. Recovery Analysis S&P has valued the business as a going concern. Given what S&P see as CEVA's good market position and valuable customer base, S&P believes that a hypothetical default would be most likely to result from significant leverage and absolute debt, combined with assumed further operational underperformance. Under S&P's simulated default scenario, a default is modeled to occur in 2010, with cash assumed to be still available on balance sheet. S&P assumes that the group will seek protection from creditors through a voluntary bankruptcy filing or another exchange offer to ease the pressure on an overleveraged capital structure, in the assumed context of an uncertain trading environment. The recovery ratings on the senior secured notes, bank facilities, and second priority notes take into account the level of expected prior-ranking and pari passu liabilities, the potential for cross- jurisdictional insolvency issues, and the relatively weak security package. The newly issued senior secured notes and existing second priority noteholders benefit from essentially the same security package as the creditors under the bank facilities, but have a second- and third-ranking claim, respectively. The recovery ratings assume that the security available to the bank facilities' secured debtholders is taken from the assets and share pledges of entities that generate about 60% of CEVA Ltd.'s EBITDA. With limited residual secured value available, in S&P's view, coverage for the senior secured and second priority notes is toward the lower end of the 10%-30% range and comes mainly from their pari passu claim on the assets not captured by the security package. S&P's analysis is based on the current capital structure. However, in S&P's view, the documentation provides limited protection for creditors. As a result, S&P believes that CEVA could raise additional debt, which may have an adverse effect on the recovery outcome. Ratings List CEVA Group PLC Rating Assigned US$200 mil. sr secd (proposed) notes CCC Recovery Rating 5 Ratings Affirmed Senior secured US$250 mil. sr secd revolving credit B- fac bank ln ser due 11/04/2012 Recovery Rating 2 US$250 mil. LOC fac bank ln ser due B- 11/30/2013 Recovery Rating 2 US$1 bil. var rate sr secd bank ln B- ser due 11/04/2013 Recovery Rating 2 US$400 mil. 10% sr secd 2nd priority CCC nts ser due 09/01/2014 Recovery Rating 5 EUR210 mil. 12% senior secured notes CCC due 09/01/2014 Recovery Rating 5 Senior unsecured EUR505 mil. 8.5% bonds due 12/01/2014 CCC Recovery Rating 5 Subordinated EUR225 mil. 10% sub-bonds due 12/01/2016 CCC- Recovery Rating 6 EUROCREDIT CDO: Moody's Confirms 'Caa1' Rating on Class E Notes --------------------------------------------------------------- Moody's Investors Service has taken these rating actions on notes issued by Eurocredit CDO V PLC. The Class A-1 Senior Secured Floating Rate Notes and the Class A-2 Senior Floating Rate Dual Currency Notes remain Aaa mainly due to the current over collateralization. Issuer: Eurocredit CDO V PLC -- Class A-3, Downgraded to Aa2; previously on March 4, 2009 Aaa Placed Under Review for Possible Downgrade -- Class B, Downgraded to A3; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade -- Class C, Downgraded to Ba1; previously on March 19, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade -- Class V, Downgraded to B1; previously on March 4, 2009 Baa2 Placed Under Review for Possible Downgrade -- Class D, Confirmed at B1; previously on March 19, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade -- Class E, Confirmed at Caa1; previously on March 19, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade This transaction is a managed cash leveraged loan collateralized loan obligation with exposure to predominantly European senior secured loans, as well as some mezzanine and senior unsecured loan exposures. The rating actions reflect Moody's revised assumptions with respect to default probability and the calculation of the diversity score as described in the press release dated February 4, 2009, titled "Moody's updates key assumptions for rating CLOs." These revised assumptions have been applied to all corporate credits in the underlying portfolio, the revised assumptions for the treatment of ratings on "Review for Possible Downgrade", "Review for Possible Upgrade", or with a "Negative Outlook" being applied to those corporate credits that are publicly rated. Moody's also notes that a material proportion of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's credit estimates. As credit estimates do not carry credit indicators such as ratings reviews and outlooks, a stress of a quarter notch-equivalent assumed downgrade was applied to each of these estimates. According to Moody's, the rating actions taken on the notes are also a result of credit deterioration of the underlying portfolio. This is observed through a decline in the average credit rating as measured through the portfolio weighted average rating factor 'WARF' (currently 2739), an increase in the amount of defaulted securities (currently 6.4% of the portfolio), and an increase in the proportion of securities from issuers rated Caa1 and below (currently 7.7% of the portfolio). These measures were taken from the recent trustee report dated August 12, 2009. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality. Due to the impact of all the aforementioned stresses, key model inputs used by Moody's in its analysis, such as par, weighted average rating factor, and weighted average recovery rate, may be different from trustee's reported numbers. In addition to the quantitative factors that are explicitly modelled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for 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. FAREPAK: Liquidators Start Settling Claims ------------------------------------------ Marcus Leroux at Times Online reports that liquidators to Farepak said checks worth a total of GBP240,000 had been sent to 5,900 customers who placed orders during the company's final weeks. According to Times Online, the 5,900 customers were those whose payments went into a trust, set up by Farepak to ring-fence customers' money before it collapsed. Times Online recalls a judge ruled earlier this year that trust claims should be settled, and the liquidator, BDO Stoy Hayward, on Monday said that it had begun posting checks. Swindon-based Farepak collapsed in October 2006, leaving more than 100,000 people out of pocket. LDV GROUP: Ex-Rover Consultant Involved in Sale Negotiations ------------------------------------------------------------ Jonathan Guthrie at The Financial Times reported that Qu Li, a Chinese automotive consultant employed by MG Rover, has emerged as a participant in talks to buy the assets of LDV Group. MG Rover was criticized in a recent government-sponsored report for paying GBP1.7 million in commissions to companies associated with Ms. Li, the FT disclosed. The FT said the money was for her services advising on and brokering deals with Chinese partners, which included Shanghai Automotive Industry Corporation, whose withdrawal from joint venture talks with MG Rover in 2005 triggered its collapse with 6,000 job losses. According to the FT, Ms. Li, whose China Ventures company is based in the UK, is now understood to be closely involved in negotiations to buy assets of LDV from administrators at PWC. LDV failed went into admnistration with 850 job losses after the UK government declined to supply a bridging loan of GBP20 million-GBP30 million and would-be buyer Weststar of Malaysia was unable to raise commercial finance. LDV is a manufacturer of light commercial vehicles. LOMBARD STREET: Moody's Cuts Rating on Class E Notes to 'Caa3 ------------------------------------------------------------- Moody's Investors Service has taken these rating actions on notes issued by Lombard Street CLO I PLC. Issuer: Lombard Street CLO I P.L.C. -- Class A Senior Secured Floating Rate Notes due 2023, Downgraded to Aa2; previously on Dec. 22, 2006 Assigned Aaa -- Revolving Loan Facility, Downgraded to Aa2; previously on Dec. 22, 2006 Assigned Aaa -- Class B Deferrable Secured Floating Rate Notes due 2023, Downgraded to Baa1; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade -- Class C Deferrable Secured Floating Rate Notes due 2023, Downgraded to Ba1; previously on March 19, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade -- Class D Deferrable Secured Floating Rate Notes due 2023, Confirmed at B1; previously on March 19, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade -- Class E Deferrable Secured Floating Rate Notes due 2023, Downgraded to Caa3; previously on March 19, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade -- Class T Combination Notes due 2023, Downgraded to Ba2; previously on March 4, 2009 A2 Placed Under Review for Possible Downgrade -- Class W Combination Notes due 2023, Downgraded to Ba3; previously on March 4, 2009 Baa1 Placed Under Review for Possible Downgrade This transaction is a managed cash leveraged loan collateralized loan obligation with exposure to predominantly European senior secured loans, as well as some mezzanine loan exposure and some structured finance securities. The rating actions reflect Moody's revised assumptions with respect to default probability and the calculation of the diversity score as described in the press release dated February 4, 2009, titled "Moody's updates key assumptions for rating CLOs." These revised assumptions have been applied to all corporate credits in the underlying portfolio, the revised assumptions for the treatment of ratings on "Review for Possible Downgrade", "Review for Possible Upgrade", or with a "Negative Outlook" being applied to those corporate credits that are publicly rated. Moody's also notes that a material proportion of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's credit estimates. As credit estimates do not carry credit indicators such as ratings reviews and outlooks, a stress of a quarter notch-equivalent assumed downgrade was applied to each of these estimates. According to Moody's, the rating actions taken on the notes are also a result of credit deterioration of the underlying portfolio. This is observed through a decline in the average credit rating as measured through the portfolio weighted average rating factor 'WARF' (currently 2743), an increase in the amount of defaulted securities (currently 8.08% of the portfolio), an increase in the proportion of securities from issuers rated Caa1 and below (currently 11.55% of the portfolio), and a failure of Class D and E par value tests. These measures were taken from the recent trustee report dated 18 August 2009. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality. Due to the impact of all the aforementioned stresses, key model inputs used by Moody's in its analysis, such as par, weighted average rating factor, and weighted average recovery rate, may be different from trustee's reported numbers. In addition to the quantitative factors that are explicitly modelled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for 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. * UK: Friendlier Insolvency Laws Attract European Companies ----------------------------------------------------------- Anousha Sakoui at The Financial Times, citing London-based lawyers, reports that a number of international companies are considering moving to England to benefit from friendlier insolvency laws and give themselves a better chance of survival. The FT relates the lawyers say a range of European companies are considering relocating so that they can use "schemes of arrangement" or insolvency proceedings to force through debt restructurings if they cannot agree terms with all their stakeholders. According to the FT, English insolvency laws are seen as more transparent and predictable than those in many continental jurisdictions. The government, the FT discloses, has been consulting professionals on the impact of European insolvency regulations, which tackle the issue of jurisdiction shopping, ahead of a European Commission review due in 2012. =============== X X X X X X X X =============== * BOOK REVIEW: Working Together - 12 Principles for Achieving Excellence ------------------------------------------------------------- In Managing Projects, Teams, and Organizations Author: James P. Lewis Publisher: Beard Books Hardcover: 208 pages Listprice: US$34.95 Review by Henry Berry Working Together is about the passionate implementation of a set of management principles that were instrumental in the development of new airplanes at the Boeing Company and, in particular, the groundbreaking Boeing 777 aircraft. The chief engineer of the Boeing 777 program when it was undertaken in the early 1980s was Alan Mulally. He was soon promoted to general manager of the project and, in 1986, was named president of Commercial Airplanes. Mr. Mulally remained with Boeing for 37 years, eventually leading Boeing Commercial Airplanes to a turnaround that began in 1996. And if the name sounds more than familiar, it should: in September 2006, Ford Motor Company named Mr. Mulally its new President and CEO, citing his record of success during his long tenure at Boeing. Through all of those years, Mr. Mulally made the "working together" principles and practices his gospel. He has been a vocal advocate of both the principles and this book by James Lewis even during his highly visible transition to Ford. Working Together chronicles the application of Mr. Mulally's leadership principles during his years at Boeing, especially during the execution of the 777 project. The 12 principles espoused in "working together" comprise a management philosophy that enabled Boeing "to dramatically increase production on all of our airplanes, improve our entire production system, and develop a number of new airplanes all simultaneously," as Mr. Mulally notes in the Foreword to the book. The value and effectiveness of working together is conveyed in a dramatic way by the author. Mr. Lewis introduces the high stakes that Boeing faced in developing the 777. At first, the company bit off more than it could chew. Fired by the enthusiasms and passions of employees exemplified by Mr. Mulally, Boeing pursued an ideal that exceeded its capacity to meet. At one point, Boeing had to "stop global production for lack of parts." Boeing was losing money, risking its future, and disappointing its customers, investors, and employees. But the roots of its problems were basically a lack of proper preparedness and organization. With Mr. Mulally in charge, operations were revised according to the model of working together. Work processes were reinforced, reinvigorated, and closely monitored. Practices such as focused agendas for meetings, clear assignments, communication among disparate employee segments, solicitation of input, and keeping a project on track, were implemented. Boeing underwent a transformation from a company in danger of permanently damaging its reputation and competence, to a company that reaffirmed its preeminence in the field of airplane design and production. As he took over the reins at Ford, Mr. Mulally observed that many of the challenges he addressed in commercial airline manufacturing are analogous to the issues he will now face at the car manufacturing giant. He stated, "I'm looking forward to working closely with Bill [Ford] in the ongoing turnaround of this great company. I'm also eager to begin engagement with the leadership team. I believe strongly in teamwork and I fully expect that our efforts will be a productive collaboration." James P. Lewis is President of Lewis Institute, Inc., a training and consulting company specializing in project management, which he founded in 1981. He also teaches seminars on the subject in the United States, England, and Asia. ********* 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 * * *