/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/091007.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, October 7, 2009, Vol. 10, No. 198 Headlines A R M E N I A ANELIK BANK: Moody's Affirms 'D-' Bank Financial Strength Rating A U S T R I A DMD FUNNY: Claims Filing Deadline is October 22 MJS MEDICAL: Claims Filing Deadline is October 22 F R A N C E NUMERICABLE SA: Sweetens Debt Buyback Proposal G E R M A N Y ARCANDOR AG: Bochum Prosecutors Seize Company Data G R E E C E ANTENNA TV: S&P Affirms Long-Term Corporate Credit Rating at 'B' I R E L A N D BUY & SELL: Bought Out of Receivership I T A L Y FIAT SPA: Won't Wind Up Sevelnord Joint-Venture with Peugeot GIANNI VERSACE: To Close Japan Stores; Review Business Strategy K Y R G Y Z S T A N JIN YU: Creditors Must File Claims by October 21 ROS TECH: Creditors Must File Claims by October 21 N E T H E R L A N D S EPC 3: Fitch Downgrades Rating on Class D Notes to 'B' STAHL: Wendel Draws Up Debt Restructuring Proposal N O R W A Y CAMILLO EITZEN: Indonesia's Berlian Laju Makes All-Share Bid R U S S I A ANGARA-STROY LLC: Creditors Must File Claims by October 18 BAUER-STROY LLC: Bankruptcy Hearing Set December 7 CERAMICS MATERIALS: Creditors Must File Claims by October 21 ILYA-VYSOKOVETSKIY: Creditors Must File Claims by October 18 LIFTING AND TRANSPORTING: Creditors Must File Claims by October 18 PROM-LES LLC: Creditors Must File Claims by November 18 ORLOVSKIY CABLE: Creditors Must File Claims by October 18 PROTVINO-KABEL LLC: Creditors Must File Claims by October 18 SAMPURSKIY DAIRY: Creditors Must File Claims by November 18 SMOLENSKIY COLD: Creditors Must File Claims by November 18 SOVETSKIY FLOUR: Kaliningradskaya Bankruptcy Hearing Set Jan. 14 UC RUSAL: Seeks to Sell Shares in Hong Kong IPO UNIVERSAL-STROY LLC: Creditors Must File Claims by October 18 * RUSSIA: Restructuring Law Risks Bankruptcies, RBC Director Says S W E D E N FORD MOTOR: US Consortium Makes Bid for Swedish Unit Volvo GENERAL MOTORS: Saab Seeks EU Approval of State Guarantee SAAB AUTOMOBILE: Seeks EU Approval of State Guarantee S W I T Z E R L A N D CAROCOM GMBH: Claims Filing Deadline is October 12 ORTSBILD.CH GMBH: Claims Filing Deadline is October 9 SUNTECH GMBH: Claims Filing Deadline is October 12 U K R A I N E AKROS LTD: Creditors Must File Claims by October 11 PEREGONOVKA SUGAR: Creditors Must File Claims by October 11 PRESTIGE LLC: Creditors Must File Claims by October 10 TMM REAL: Fitch Maintains Issuer Default Rating at 'CC' VELES LLC: Creditors Must File Claims by October 10 U N I T E D K I N G D O M LLOYDS BANKING: Injects Capital Into Irish Unit PALMER SQUARE: S&P Cuts Ratings on Four Classes of Notes to 'CC' ROYAL BANK: Still In Talks with Possible Buyers for Asian Assets ROYAL BANK: To Finalize GBP4 Billion Share Placing ROYAL BANK: Injects Capital Into Irish Unit SOUTHERN CROSS: Operations Director Kamma Foulkes to Step Down UK RECEIVABLES: Moody's Reviews Ratings on 12 Classes of Notes * UK: Business Failures to Rise by More Than a Third in 2009 ********* ============= A R M E N I A ============= ANELIK BANK: Moody's Affirms 'D-' Bank Financial Strength Rating ---------------------------------------------------------------- Moody's Investors Service has affirmed and withdrawn the ratings of Anelik Bank CJSC of Armenia for business reasons. The action was taken with the consent of both parties and does not reflect a change in the bank's creditworthiness. "Moody's affirmation of the bank's ratings takes into consideration that its loss-absorption capacity, a critical factor in view of current market conditions, was recently enhanced with a capital injection by strategic investor Crédit Libanais, which will also enable it to grow in the medium term," says Stathis Kyriakides, AVP-Analyst in Moody's Financial Institutions Group. "Nevertheless, the negative outlook on the bank's ratings is maintained as pressure on non-performing loans is on the rise." Moody's has withdrawn these ratings for Anelik Bank: -- Bank Financial Strength Rating: D- (negative outlook). -- Long-term Global Local Currency deposit rating: Ba3 (negative outlook). -- Long-term foreign currency deposit rating: Ba3 (negative outlook). -- Short-term deposit ratings: Not-Prime. Anelik Bank CJSC is based in Yerevan, Armenia, and reported total assets of ARD42.5 billion (US$118 million) at the end of June 2009. ============= A U S T R I A ============= DMD FUNNY: Claims Filing Deadline is October 22 ----------------------------------------------- Creditors of Dmd Funny GmbH have until October 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 5, 2009 at 9:15 a.m. For further information, contact the company's administrator: Dr. Hannelore Pitzal Paulanergasse 9 1040 Vienna Austria Tel: 587 31 11, 587 31 12, 587 87 50 Fax: 587 87 50 50 E-mail: office@pitzal-partner.at MJS MEDICAL: Claims Filing Deadline is October 22 ------------------------------------------------- Creditors of Mjs Medical Jet Service Dichtl & Partner GmbH have until October 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 5, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Thomas Engelhart Esteplatz 4 1030 Vienna Austria Tel: 712 33 30 Fax: 712 33 30 30 E-mail: kanzlei@engelhart.at =========== F R A N C E =========== NUMERICABLE SA: Sweetens Debt Buyback Proposal ---------------------------------------------- Alasdair Reilly and Zaida Espana at Reuters reports that Numericable S.A. has put forward an improved loan covenant reset and debt buyback proposal. According to Reuters, the original proposal was opposed by lenders who wanted an equity injection from the owners of the business. Citing a banking source close to the situation, Reuters discloses the new proposals involve Numericable's private equity owners -- Cinven, Carlyle Group and Altice -- deleveraging the company by injecting EUR50 million (US$73.11 million) of cash into the company and negating existing sponsor-held debt. Reuters relates the source said that other changes include asking the capital expenditure lenders to defer repayments to help with liquidity in coming years. According Reuters, the source also said the amendment requires two thirds approval from the loan syndicate. Early bird approvals are expected by Oct. 21, with a final deadline of Nov. 2, Reuters states. Numericable, Reuters says, has been struggling to meet the covenants on its leveraged loan after softer earnings and lower earnings before interest, tax, depreciation and amortization (EBITDA). Numericable S.A. -- http://www.numericable.fr/-- is a cable broadband operator in France. It provides digital and analog television, Internet, and phone services to homes. Numericable S.A. was formerly known as France Telecom Cable and changed its name to Numericable S.A. in 2004. The company was founded in 1993 and is based in Paris, France. ============= G E R M A N Y ============= ARCANDOR AG: Bochum Prosecutors Seize Company Data -------------------------------------------------- Karin Matussek at Bloomberg News reports that Thomas Schulz, a spokesman for Arcandor AG, said Monday Bochum prosecutors seized company data. According to Bloomberg, Der Spiegel, citing a Bochum prosectuor, reported that investigators are looking into whether Arcandor contracts were "economically tenable". Bloomberg relates the magazine said Bochum prosecutor are investigating former Chief Executive Officer Thomas Middelhoff for breach of trust and may now also look into whether bankruptcy related crimes were committed at Arcandor. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that a local court in Essen formally opened insolvency proceedings for the Arcandor on Sept. 1. Bloomberg disclosed the proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. As reported in the Troubled Company Reporter-Europe, on June 9, 2009, Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state-owned bank. =========== G R E E C E =========== ANTENNA TV: S&P Affirms Long-Term Corporate Credit Rating at 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B' long-term corporate credit and senior unsecured debt ratings on Greek broadcaster Antenna TV S.A. The outlook is stable. At the same time, S&P removed the ratings from CreditWatch, where they had been placed with negative implications on June 12, 2009. "The affirmation follows S&P's review of Antenna's business and financial risk profiles after its completion of two successive tender offers to redeem its senior unsecured notes due 2015," said Standard & Poor's credit analyst Melvyn Cooke. "Although S&P views the first tender offer, made in June 2009, as aggressive from a financial policy standpoint, S&P considers that Antenna's financial policy remains commensurate with the current ratings." In addition, S&P understand that Antenna intends to continue to provide detailed public financial information under IFRS in the foreseeable future, even if it decides to redeem the remaining outstanding notes in February 2010. The affirmation also reflects S&P's expectation that Antenna's liquidity will likely remain adequate over the next few quarters, despite S&P's assumption that Antenna is set to generate significant operating losses and negative free cash flow for full- year 2009. In addition, S&P anticipate that the company's cost- cutting initiatives, together with steady improvement in its audience and advertising market shares over the last 12 months, should result in strengthened operating performance and reduced cash burn from 2010 onward. "The stable outlook primarily reflects S&P's opinion that Antenna's liquidity -- mainly supported by large cash balances -- stands to remain adequate over the next few quarters, despite ongoing operating losses," said Mr. Cooke. "We also anticipate that Antenna's negative free cash flow will likely decrease progressively in the next few quarters, thanks to a slowly improving advertising market and the company's cost cuts." S&P expects Antenna to continue sustaining or improving its audience and its advertising market shares in the foreseeable future. The outlook does not factor in any acquisition and/or shareholder buy-back activity. Downward rating pressure could stem from materially larger-than- expected deterioration in Antenna's liquidity over the next few quarters, including higher-than-expected negative free cash flows. In particular, if cash and cash equivalents were to fall significantly below EUR350 million at year-end 2009, with prospects of future meaningful deterioration, S&P could downgrade Antenna. A move by Antenna to make a significant acquisition and/ or shareholder repurchases would also weigh on the ratings. S&P sees no rating upside at this point, given the improvements in Antenna's operating performance already factored into the ratings. ============= I R E L A N D ============= BUY & SELL: Bought Out of Receivership -------------------------------------- Barry O'Halloran at The Irish Times reports that a company backed by Nelson and Elgin Loane, the family behind the old Adare printing and packaging group, has acquired classified magazine publisher Buy & Sell from receivership for an undisclosed sum. According to the report, Buy & Sell's new owners plan to develop the existing classified business and to expand its Web site offering, where they see potential for growth. The group employs 55 people and it is understood that this number will not change, the report notes. "Buy & Sell has a turnover of EUR7 million and is a fundamentally profitable business with a strong heritage," the report quoted John Eager, the company's new interim managing director, as saying. The report recalls Buy & Sell was placed under the High Court's protection last June owing EUR18.3 million to National Irish Bank and went into receivership last week after efforts to save the company failed within the 100-day protection period. ========= I T A L Y ========= FIAT SPA: Won't Wind Up Sevelnord Joint-Venture with Peugeot ------------------------------------------------------------ Sara Gay Forden and Marco Bertacche at Bloomberg News report that Richard Gadeselli, a spokesman for Fiat SpA, said the company isn't unwinding its Sevelnord joint-venture with PSA Peugeot Citroen. According to Bloomberg, Mr. Gadeselli said Sevelnord is a "long standing and successful" venture. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. With operations in over 190 countries, the Group has 203 plants, 118 research centers, 633 companies and more than 198,000 employees. * * * As reported in the Troubled Company Reporter-Europe on June 16, 2009, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on Italian industrial group Fiat SpA remains on CreditWatch with negative implications, where it was placed on Jan. 22, 2009. At the same time, the 'B' short-term corporate credit rating was affirmed. GIANNI VERSACE: To Close Japan Stores; Review Business Strategy --------------------------------------------------------------- Gianni Versace S.p.A. will close its Japanese stores and review its entire business strategy as newly appointed Chief Executive Officer Gian Giacomo Ferraris makes his mark on the business, Chris Staiti at Bloomberg News reports. "The Versace boutiques in Japan no longer represented the brand image and it was felt to be more advantageous for the company to close them and start with a clean slate," Bloomberg quoted Federico Steiner, an outside spokesman for Versace in Milan, as saying in a statement. Mr. Steiner told Bloomberg that the stores are now in the process of being closed. According to Bloomberg, Mr. Steiner wouldn't comment on a report by Nikkei English News that Versace will liquidate the Japanese unit by the end of the year, other than to say the company is "exploring its options." Gianni Versace S.p.A. -- http://www.versace.com/-- is an Italian- based international fashion house. The company produces accessories, fragrances, makeup and home furnishings as well as clothes. =================== K Y R G Y Z S T A N =================== JIN YU: Creditors Must File Claims by October 21 ------------------------------------------------ LLC Jin Yu is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Inquires can be addressed to (0-543) 91-99-35. ROS TECH: Creditors Must File Claims by October 21 -------------------------------------------------- LLC Ros Tech Torg is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Inquires can be addressed to (0-555) 74-77-11 ===================== N E T H E R L A N D S ===================== EPC 3: Fitch Downgrades Rating on Class D Notes to 'B' ------------------------------------------------------ Fitch Ratings has downgraded EPC 3 note classes A to D. The rating actions are: -- EUR136.2m class A (XS0236878525) downgraded to 'AA' from 'AAA'; Outlook Negative -- EUR0.05m class X (XS0236879416) affirmed at 'AAA'; Outlook Stable -- EUR17.8m class B (XS0236879416) downgraded to 'A' from 'AA+'; Outlook Negative -- EUR17.9m class C (XS0236880851) downgraded to 'BB' from 'A+'; Outlook Negative -- EUR17.5m class D (XS0236881313) downgraded to 'B' from 'BBB'; Outlook Negative The downgrades are primarily driven by the deterioration in transaction performance as demonstrated by the 14.2% decrease in aggregate passing rent since the review in June 2008. Specific concerns include the CPFM loan, whose maturity date has been extended until August 2010 from January 2009 due to the borrower's inability to refinance or sell the asset at loan maturity. Concerns continue to mount over the performance of the Randstad loan where economic vacancy has increased to 18.4% at the August IPD from 4.7% at closing, and passing rent has fallen to EUR10.8 million from EUR16.2 million over the same period. Fitch's criteria for European CMBS surveillance was used to analyze the quality of the underlying commercial loans. EPC 3 is a securitization originally comprising five commercial mortgage backed loans originated by JP Morgan Chase Bank, N.A, of which three remain; Randstad (64.3% by loan balance), Algarve (30.7%), and CPFM (5.1%). As at the August 2009 IPD, 66.5% of the collateral by MV was located in the Netherlands, accounting for all 20 Randstad assets and the CPFM warehouse. The remaining collateral comprises a single shopping centre located in Southern Portugal. All three loans are set to mature in 2010. In June 2006, the Alliance and Carrefour loans both prepaid, with their respective loan balances being used to pay down the notes on a modified pro-rata basis; these prepayments had the effect of reducing the reported weighted average (WA) loan-to-value ratio to 69.4% at the August 2006 IPD from 74% at closing in December 2005. In addition, since closing both the Algarve and Randstad loans have continued to de-leverage through fixed amortization schedules, further bringing down the WA LTV. The properties securing the Randstad and CPFM loans were re-valued in February and August 2009 respectively. This reduced the transaction collateral's aggregate market value to EUR288.9 million from EUR305.8 million, implying a current reported securitized WA LTV of 65.5%. Fitch estimates the current securitized WA LTV to be 80.4%, implying an 18.5% MV decline since the most recent valuations. Fitch will continue to monitor the performance of the transaction. STAHL: Wendel Draws Up Debt Restructuring Proposal -------------------------------------------------- Martin Arnold at The Financial Times reports that Wendel SA has made a debt restructuring proposal for Dutch leather coatings company Stahl. According to the FT, the proposal from Wendel involves a EUR60 million equity injection by the French group to pay down debt at Stahl. FT says the proposal is still being negotiated and requires approval from the Dutch company's lenders. The FT says the equity injected by Wendel will be used to buy back senior debt. Stahl's EUR70 million of mezzanine loans and EUR45 million of second lien loans would be swapped for small equity stake, the FT states. Stahl's debt would fall from about EUR375 million to EUR190 million, the FT notes. According to the FT, if successful, the offer would end up with Wendel holding a 90% stake in Stahl, which has been hit hard by falling demand for its products used in the auto, furniture, flooring and shoe industries. Carlyle Group is still in talks and may yet take part in the restructuring, the FT discloses. The FT recalls Wendel and Carlyle jointly acquired Stahl EUR520 million (US$762 million) three years ago. Stahl is 48%-owned by Wendel SA -- http://www.wendelgroup.com/-- a France-based investment company. It primarily invests in the industrial and service sector, in France and abroad. As of December 31, 2008, Wendel held 100% stakes in Oranje-Nassau, a Dutch group focused on energy production as well as on private equity. Oranje-Nassau's energy sector is active in the exploration, development and production of oil and gas, with the main regions of interest in Europe, Africa and the Middle East, while the private equity sector primarily invests in internationally oriented companies. Wendel also held stakes in Bureau Veritas (52%), Materis (76%), Stallergenes (47%), Deutsch (89%), Saint-Gobain (18%) and Legrand (31%), as well as various non-strategic listed holdings. =========== N O R W A Y =========== CAMILLO EITZEN: Indonesia's Berlian Laju Makes All-Share Bid ------------------------------------------------------------ Robert Wright at The Financial Times reports Indonesia's Berlian Laju has made a recommended all-share bid for Norway's Camillo Eitzen & Co. AS. According to the FT, the transaction will give Berlian Laju control of Eitzen Chemical, a listed chemical tanker operator of which Camillo Eitzen owns 52%. The FT relates Camillo Eitzen had been undertaking a restructuring that was expected to include issuing fresh equity as it suffered the effects of serious downturns in the shipping markets. Berlian Laju, the FT says, has undertaken to complete Camillo Eitzen's restructuring and provide the necessary capital. Berlian Laju, the FT discloses, is offering NOK25 per Camillo Eitzen share, payable in instruments that will convert into Berlian Laju shares. The offer values the Norwegian company at NOK1.01 billion (US$174 million), the FT notes. Berlian Laju's offer is conditional, most importantly that it can raise US$200 million in fresh equity, the FT states. Camillo Eitzen & Co. ASA -- http://www.camillo-eitzen.com/-- is a Norway-based shipping company engaged, together with its subsidiaries, in the provision of shipping services in Norway and abroad. The Company’s core activities include ship ownership, operation and management. Its operations are divided into three business segments: Eitzen Gas operates in the liquid petroleum gas (LPG) and petrochemicals transportation market with a fleet of 34 sailing and six commercial management vessels; Eitzen Bulk is involved in the dry bulk trade business that transports iron ore, steel products, fertilizers, coal, grain products and petroleum coke, and Tankers, through which the Company invests in tanker operator companies. Camillo Eitzen & Co. operates two subsidiaries: Eitzen Chemical ASA, which owns and operates chemicals transportation vessels, and Eitzen Maritime Services ASA, which offers ship management, supply, and insurance broker services. =========== R U S S I A =========== ANGARA-STROY LLC: Creditors Must File Claims by October 18 ---------------------------------------------------------- Creditors of LLC Angara-Stroy (TIN 3812048964) (Construction) have until October 18, 2009, to submit proofs of claims to: O.Voychenko Insolvency Manager Post User Box 46 Tayshet 665008 Irkutskaya Russia The Arbitration Court of Irkutskaya will convene at 10:00 a.m. on February 18, 2010, to hear bankruptcy proceedings. The case is docketed under Case No. ?19–15700/09–71. The Debtor can be reached at: LLC Angara-Stroy Ryabikova Blvd. 43 664043 Irkutsk Russia BAUER-STROY LLC: Bankruptcy Hearing Set December 7 -------------------------------------------------- The Arbitration Court of Kaliningradskaya will convene at 10:30 a.m. on December 7, 2009, to hear bankruptcy supervision procedure on LLC Bauer-Stroy (TIN 3917029239, PSRN 1063917026887) (Construction). The case is docketed under Case No. ?21– 6080/2009. The Temporary Insolvency Manager is: I. Melnikov B. Khmelnitskogo Str. 53 236039 Kaliningrad Russia Tel/Fax: 8 401 266 91 55 The Debtor can be reached at: LLC Bauer-Stroy General Sommer Str. 12/1 236040 Kaliningrad Russia CERAMICS MATERIALS: Creditors Must File Claims by October 21 ------------------------------------------------------------ Creditors of LLC Ceramics Materials Plant have until October 21, 2009, to submit proofs of claims to: A. Vukhtin Temporary Insolvency Manager Office 18 Lenina Str. 82 Belorechinsk 352630 Krasnodarskiy Russia The Arbitration Court of Krasnodarskiy will convene on December 8, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?32–17820/2009–8/523B. The Debtor can be reached at: LLC Ceramics Materials Plant Bzhedukhovskaya Belorechenskiy Krasnodarskiy Russia ILYA-VYSOKOVETSKIY: Creditors Must File Claims by October 18 ------------------------------------------------------------ Creditors of OJSC Ilya-Vysokovetskiy Flax-Processing Plant (TIN 3720000112, PSRN 1023701725761) have until October 18, 2009, to submit proofs of claims to: A.Demitrov Temporary Insolvency Manager Building 2 Talalikhina Str. 1 109029 Moscow Russia The Arbitration Court of Ivanovskaya will convene at 9:30 a.m. on January 11, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?17–3435/2009–14B. The Debtor can be reached at: OJSC Ilya-Vysokovetskiy Flax-Processing Plant Ilya-Vysokovo Puchezhskiy 155375 Ivanovskaya Russia LIFTING AND TRANSPORTING: Creditors Must File Claims by October 18 ------------------------------------------------------------------ Creditors of CJSC Lifting and Transporting Equipment (TIN 2461025466, PSRN 1022401943520) have until October 18, 2009, to submit proofs of claims to: M. Vasilega Temporary Insolvency Manager Post User Box 100 105318 Moscow Russia The Arbitration Court of Krasnoyarskiy commenced bankruptcy supervision procedure. The case is docketed under Case No. ?33– 10344/2009. The Debtor can be reached at: CJSC Lifting and Transporting Equipment A.Pavlova Str. 1 Krasnoyarsk Russia PROM-LES LLC: Creditors Must File Claims by November 18 ------------------------------------------------------- Creditors of LLC Prom-Les (TIN 2918008335, PSRN 1072918000220) (Forestry) have until November 18, 2009, to submit proofs of claims to: S. Ivanov Insolvency Manager Kirova Str. 1-338 450008 Ufa Bashkortostan Russia The Arbitration Court of Arkhangelskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No.?05–890/2009. The Debtor can be reached at: LLC Prom-Les Moskovskaya Str. 13-16 164200 Nyandoma Russia ORLOVSKIY CABLE: Creditors Must File Claims by October 18 --------------------------------------------------------- Creditors of LLC Orlovskiy Cable Plant (TIN 5752030378, PSRN 1025700781138) have until October 18, 2009, to submit proofs of claims to: R. Rasskazov Temporary Insolvency Manager Office 31 Gorkogo Str. 45 302040 Orel Russia The Arbitration Court of Orlovskaya will convene at 9:10 a.m. on January 13, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?48–3857/2009. The Debtor can be reached at: LLC Orlovskiy Cable Plant Mashinostroitelnaya Str. 6 302008 Orel Russia PROTVINO-KABEL LLC: Creditors Must File Claims by October 18 ------------------------------------------------------------ Creditors of LLC Protvino-Kabel (TIN 5037060527, PSRN 102500480059770) have until October 18, 2009, to submit proofs of claims to: Ye.Zueva Temporary Insolvency Manager Leteva Str. 18 115162 Moscow Russia The Arbitration Court of Moskovskaya commenced bankruptcy supervision procedure . The case is docketed under Case No. ?41– 26819/09. The Debtor can be reached at: LLC Protvino-Kabel Apt. 439 Zheleznodorozhnaya Str. 3 Protvino 142280 Moskovskaya Russia SAMPURSKIY DAIRY: Creditors Must File Claims by November 18 ----------------------------------------------------------- Creditors of OJSC Sampurskiy Dairy Plant (TIN 6817000030) have until November 18, 2009, to submit proofs of claims to: O. Kiselev Insolvency Manager Office 605 Derzhavinskaya Str. 16a Tambov Russia The Arbitration Court of Tambovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?64–535/2009. The Debtor can be reached at: OJSC Sampurskiy Dairy Plant Mira Str. 20A Sampurskiy Tambovskaya Russia SMOLENSKIY COLD: Creditors Must File Claims by November 18 ---------------------------------------------------------- Creditors of OJSC Cold Storage Facility (TIN 672901001, PSRN 1026701453646) have until November 18, 2009, to submit proofs of claims to: S. Lavrentyeva Insolvency Manager Engelsa Str. 21/5 214014 Smolensk Russia The Arbitration Court of Smolenskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No.?-62–900/2009. The Debtor can be reached at: OJSC Cold Storage Facility Oktyabrya Str. 46 214010 Smolensk Russia SOVETSKIY FLOUR: Kaliningradskaya Bankruptcy Hearing Set Jan. 14 ---------------------------------------------------------------- The Arbitration Court of Kaliningradskaya will convene at 10:20 a.m. on January 14, 2010, to hear bankruptcy supervision procedure on OJSC Sovetskiy Flour Mill. The case is docketed under Case No. ? 21–4951/2009. The Temporary Insolvency Manager is: A. Kasimov Post User Box 1006 236036 Kaliningrad Russia The Debtor can be reached at: OJSC Sovetskiy Naberezhnaya Str. 14 Sovetsk 238750 Kaliningradskaya Russia UC RUSAL: Seeks to Sell Shares in Hong Kong IPO ----------------------------------------------- Brett Foley at Bloomberg News reports that United Co. Rusal applied to sell shares in an initial public offering in Hong Kong, citing two people familiar with the matter. Bloomberg relates on the people said Rusal will offer investors shares equal to a 10% stake in the company. According to Bloomberg, billionaire Oleg Deripaska, Rusal's controlling shareholder, is selling part of the company to help pay back more than US$14 billion owed to Russian and foreign creditors. As reported in the Troubled Company Reporter-Europe on Sept. 23, 2009, The Times said talks with the Libyan Investment Authority and other sovereign wealth funds about selling a 10% stake in Rusal failed. The Times disclosed the company had agreed another extension to the deadline for renegotiating its repayment schedule to foreign and Russian banks. The standstill agreement on debt repayment to foreign banks has been extended until the end of October, The Times said. About Rusal Headquartered in Moscow, Russia, United Co. RUSAL -- http://www.rusal.com/-- is among the world's top aluminum producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000 from various parts of the old Soviet state apparatus, RUSAL produces about 4 million tons of aluminum, 11 million tons of alumina, and 6 million tons of bauxite. Its aluminum business include packaging and foil operations in addition to a network of smelters. Those Soviet spare parts were significantly augmented in 2007 when the company merged with fellow Russian aluminum producer Sual and Glencore's alumina unit. RUSAL is majority owned by Board member Oleg Deripaska, who had owned the company completely prior to the merger. UNIVERSAL-STROY LLC: Creditors Must File Claims by October 18 ------------------------------------------------------------- Creditors of LLC Universal-Stroy (TIN 2915003804, PSRN 1072905000585) (Construction) have until October 18, 2009, to submit proofs of claims to: T. Kolominova Insolvency Manager Apt. 32 Melentyeva Str. 37 165300 Kotlas Arkhangelskaya Russia The Arbitration Court of Arkhangelskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?05–366/2009. The Debtor can be reached at: LLC Universal-Story Privokzalnaya Str. 69a Urdoma Lenskiy 165720 Arkhangelskaya Russia * RUSSIA: Restructuring Law Risks Bankruptcies, RBC Director Says ----------------------------------------------------------------- Yuriy Humber at Bloomberg News reports that Michael Hammond, a non-executive director of media company OAO RBC Information Systems, said that Russian law on debt restructuring risks "unnecessary" bankruptcies and deterring further lending by foreign banks. Mr. Hammond, as cited by Bloomberg, said "The risk with the current legislation is that some good companies that could recover and over time repay creditors, potentially in full, will fail unnecessarily." "There are a number of Russian commercial banks that use the legal system to get a better deal for themselves," Mr. Hammond quoted Bloomberg News as saying. "You can't blame them, but if there’s a reasonable deal on the table then you hope terms can be negotiated to enable companies to move forward." The report notes Mr. Hammond has advised Russian companies on capital markets for 20 years as a banker with Credit Suisse First Boston and ABN Amro Holding NV's venture with NM Rothschild & Sons Ltd. =========== S W E D E N =========== FORD MOTOR: US Consortium Makes Bid for Swedish Unit Volvo ---------------------------------------------------------- Andrew Ward and John Reed at The Financial Times report that Crown consortium has made an offer for Ford Motor Co.'s Swedish unit Volvo. Citing people close to the sale, the FT discloses the US-led consortium is fronted by Michael Dingman, a former Ford director and veteran turnround specialist, and Shamel Rushwin, a former executive at Ford and Chrysler. The FT says financing has been fully secured from US private equity groups, but the consortium is seeking additional backing from Swedish investors to signal its commitment to keep Volvo in the country. According to the FT, another informed person said the consortium had offered Ford significantly less than China's Geely Automobile, but that both bids involved similar plans for more than US$3 billion of additional investment in Volvo after completion of any deal. As reported in the Troubled Company Reporter-Asia on Sept. 28, 2009, The Wall Street Journal said Geely emerged as the leading contender to acquire Volvo. The WSJ disclosed that Ford is in the process of analyzing a recent Geely bid to acquire 100% of Volvo for approximately US$2.5 billion. According to the Journal, the offer is higher than Ford or outsiders had expected for a brand that has lost more than US$1 billion in recent years. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on April 15, 2009, Standard & Poor's Ratings Services said it raised its ratings on Ford Motor Co. and related entities, including the corporate credit rating, to 'CCC+' from 'SD-'. The ratings on Ford Motor Credit Co. are unchanged, at 'CCC+', and the ratings on FCE Bank PLC, Ford Credit's European bank, are also unchanged, at 'B-', maintaining the one-notch rating differential between FCE and its parent Ford Credit. S&P said that the outlook on all entities is negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. GENERAL MOTORS: Saab Seeks EU Approval of State Guarantee --------------------------------------------------------- Niklas Magnusson at Bloomberg News reports that Saab Automobile said Sweden's government sent an application to the European Commission for approval of a potential state guarantee the Swedish carmaker needs for a loan from the European Investment Bank. Bloomberg relates Saab spokesman Eric Geers said Monday the Swedish carmaker, which is being sold by General Motors Co., will continue negotiations with the Swedish National Debt Office, which handles the country's aid program for automakers, about the potential guarantee. Mr. Geers, as cited by Bloomberg, said Saab is also waiting for the EIB to decide on whether to grant Saab the loan. As reported in the Troubled Company Reporter-Europe on Aug. 18, 2009, GM finalized an agreement to sell Saab to Koenigsegg Automotive. The FT disclosed the memorandum of understanding agreed in June was conditional on US$600 million of funding from the European Investment Bank, underwritten by Sweden. Creditor Protection The Troubled Company Reporter Europe, citing Bloomberg News, reported on Feb. 23, 2009, Saab filed for protection from creditors after parent GM said it will cut ties with the Swedish carmaker following two decades of losses. The Trollhaettan, Sweden-based company filed for reorganization with a Swedish district court to separate itself from GM and bring resources back to Sweden. On June 25, 2009, Troubled Company Reporter, citing The Wall Street Journal, reported creditors of Saab approved the automakers' proposal for settling its debts by paying a quarter of what it originally owed. Saab proposed to settle its debts by paying 25% of about US$1.34 billion it owed to more than 600 creditors, including auto suppliers and the Swedish government. The vast majority of the debt, almost SEK10 billion, was owed to GM. About Saab Automobile Saab Automobile AB -- http://www.saab.com/-- is a wholly owned subsidiary of General Motors. With an annual production of up to 126,000 cars, Saab's current models include the 9-3 (available as a convertible or sport sedan), the luxury 9-5 sedan (also available in a sport wagon), and the seven-passenger 9-7X SUV. Offered only through Saab Expressions dealerships, Saab cars woo enthusiasts with merchandising that includes pen and pencil sets, martini glasses, toys, and watches. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000 SAAB AUTOMOBILE: Seeks EU Approval of State Guarantee ----------------------------------------------------- Niklas Magnusson at Bloomberg News reports that Saab Automobile said Sweden's government sent an application to the European Commission for approval of a potential state guarantee the Swedish carmaker needs for a loan from the European Investment Bank. Bloomberg relates Saab spokesman Eric Geers said Monday the Swedish carmaker, which is being sold by General Motors Co., will continue negotiations with the Swedish National Debt Office, which handles the country's aid program for automakers, about the potential guarantee. Mr. Geers, as cited by Bloomberg, said Saab is also waiting for the EIB to decide on whether to grant Saab the loan. As reported in the Troubled Company Reporter-Europe on Aug. 18, 2009, GM finalized an agreement to sell Saab to Koenigsegg Automotive. The FT disclosed the memorandum of understanding agreed in June was conditional on US$600 million of funding from the European Investment Bank, underwritten by Sweden. Creditor Protection The Troubled Company Reporter Europe, citing Bloomberg News, reported on Feb. 23, 2009, Saab filed for protection from creditors after parent GM said it will cut ties with the Swedish carmaker following two decades of losses. The Trollhaettan, Sweden-based company filed for reorganization with a Swedish district court to separate itself from GM and bring resources back to Sweden. On June 25, 2009, Troubled Company Reporter, citing The Wall Street Journal, reported creditors of Saab approved the automakers' proposal for settling its debts by paying a quarter of what it originally owed. Saab proposed to settle its debts by paying 25% of about US$1.34 billion it owed to more than 600 creditors, including auto suppliers and the Swedish government. The vast majority of the debt, almost SEK10 billion, was owed to GM. Saab Automobile AB -- http://www.saab.com/-- is a wholly owned subsidiary of General Motors. With an annual production of up to 126,000 cars, Saab's current models include the 9-3 (available as a convertible or sport sedan), the luxury 9-5 sedan (also available in a sport wagon), and the seven-passenger 9-7X SUV. Offered only through Saab Expressions dealerships, Saab cars woo enthusiasts with merchandising that includes pen and pencil sets, martini glasses, toys, and watches. ===================== S W I T Z E R L A N D ===================== CAROCOM GMBH: Claims Filing Deadline is October 12 -------------------------------------------------- Creditors of Carocom GmbH are requested to file their proofs of claim by October 12, 2009, to: Franz Peter and Ursula Brun-Roos Lindenhalde 6 6374 Buochs Switzerland The company is currently undergoing liquidation in Buochs. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 4, 2009. ORTSBILD.CH GMBH: Claims Filing Deadline is October 9 ----------------------------------------------------- Creditors of Ortsbild.ch GmbH are requested to file their proofs of claim by October 9, 2009, to: Hofer Daniel Liquidator Bruennenstrasse 118 3018 Bern Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 3, 2009. SUNTECH GMBH: Claims Filing Deadline is October 12 -------------------------------------------------- Creditors of Suntech GmbH are requested to file their proofs of claim by October 12, 2009, to: Suntech GmbH Neuwiese 53 5305 Unterendingen Switzerland The company is currently undergoing liquidation in Unterendingen. The decision about liquidation was accepted at a shareholders' meeting held on August 17, 2009. ============= U K R A I N E ============= AKROS LTD: Creditors Must File Claims by October 11 --------------------------------------------------- Creditors of LLC Industrial Group Akros Ltd. (code EDRPOU 33885997) have until October 11, 2009 to submit proofs of claim to LLC Techprominvest, the company's insolvency manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 26, 2009. The case is docketed under Case No. 49/342-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 Industrial Group Akros Ltd. Smilianskaya Str. 7 03151 Kiev Ukraine PEREGONOVKA SUGAR: Creditors Must File Claims by October 11 ----------------------------------------------------------- Creditors of OJSC Peregonovka Sugar Plant (code EDRPOU 00372013) have until October 11, 2009, to submit proofs of claim to: S. Salatova Insolvency Manager Glinka Str. 2 Kirovograd Ukraine The Economic Court of Kirovograd commenced bankruptcy proceedings against the company on August 12, 2009. The case is docketed under Case No. 14/78. The Court is located at: The Economic Court of Kirovograd Lunacharsky Str. 29 25006 Kirovograd Ukraine The Debtor can be reached at: OJSC Peregonovka Sugar Plant Engels Str. 1 Peregonovka Golovanovsky 26522 Kirovograd Ukraine PRESTIGE LLC: Creditors Must File Claims by October 10 ---------------------------------------------------- Creditors of LLC Prestige (code EDRPOU 32186206) have until October 10, 2009, to submit proofs of claim to: I. Soldatkin Post Office Box 30 40014 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company on September 3, 2009. The case is docketed under Case No. 12/123-09. The Court is located at: The Economic Court of Sumy Shevchenko Ave. 18/1 40477 Sumy Ukraine The Debtor can be reached at: LLC Prestige 1st Railway Str. 2 40030 Sumy Ukraine TMM REAL: Fitch Maintains Issuer Default Rating at 'CC' ------------------------------------------------------- Fitch Ratings is maintaining Ukraine-based TMM Real Estate Development plc's Long-term foreign and local currency Issuer Default ratings of 'CC' and National Long-term rating of 'B(ukr)' on Rating Watch Negative. The ratings were originally placed on RWN on December 2, 2008. The RWN continues to reflect acute concerns about TMM's weak liquidity and the poor conditions currently prevailing in the Ukrainian residential property market. Based on Fitch forecasts, TMM may not generate sufficient operational cash flow in 2009-2011 to cover its interest costs. Fitch forecasts a negative free cash flow of about US$13 million for TMM over the next 12 months. Given the company's low levels of back-up liquidity (approximately US$300,000 of cash and zero committed undrawn credit facilities), there is concern over how the company will be able to finance this shortfall. Fitch understands from TMM that it is currently in talks with various investors with a view to raising new finance, although the agency remains sceptical about its ability to access new finance given its small size, weak profile and exposure to a depressed real estate market. Nevertheless, Fitch positively notes the progress TMM has made to date with resolving its short-term debt problem. Since November 2008, the company has managed to refinance all of its US$65 million of short-term debt, including UAH150 million (US$18.7 million equivalent) of bonds that matured on October 1, 2009. As a result, TMM now has no major debt maturities until May 2011 (when a US$18 million equivalent revolving credit facility matures). A large part of this refinancing has come from JSC State Savings Bank of Ukraine (Oschadbank) (rated 'B'/Negative Outlook), a state-owned Ukrainian bank, which has provided UAH310 million (US$37 million) of new debt since February. Fitch views the willingness of a state entity to lend to TMM as a positive indicator of the company's ability to access local financing. Fitch further notes that TMM's core market, the Ukrainian residential property market, has suffered a significant fall in demand following the country's macroeconomic turmoil. TMM has indicated that its sales may have fallen by approximately 45% yoy in H109 in Hryvnia (UAH) terms, versus 47% for the whole construction market (source: State Statistics Committee). Sales in US$ terms -- TMM's reporting currency -- will likely be even lower given the depreciation of the UAH over the last 12 months. Although there have been some tentative signs of stabilising prices in the Kiev market (in UAH terms), the market remains over- supplied, and Fitch does not expect a significant improvement in market conditions for the foreseeable future given the weak wider Ukrainian economy and the lack of availability of mortgage and development finance. Fitch now expects to resolve the RWN by end-December 2009. A downgrade of the ratings could be triggered if a default, such as a failure to cover scheduled interest payments, appears imminent or inevitable. Conversely, the ratings could be affirmed at current levels if the company creates sufficient liquidity reserves to cover its forecast negative free cash flow over at least the next 12 months. A removal of the RWN status also remains contingent on receipt of TMM's audited 2008 annual accounts, which have yet to be published. TMM, incorporated in Cyprus, is the holding company of a vertically integrated development and construction group operating in Ukraine -- mainly in Kiev, with presence in Kharkov and Crimea. In FY07, TMM had revenues of US$61 million and EBITDAR of US$9 million. As at May 31, 2008, TMM had total debt of approximately US$81 million, all of which is secured. VELES LLC: Creditors Must File Claims by October 10 --------------------------------------------------- Creditors of LLC Veles (code EDRPOU 31270202) have until October 10, 2009, to submit proofs of claim to: J. Zinchenko Insolvency Manager Spartakovskaya Str. 8 Guliaypole 70200 Zaporozhye Ukraine The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company on August 26, 2009. The case is docketed under Case No. 19/15/09. The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: LLC Veles 40 years of Soviet Ukraine Str. 41 69037 Zaporozhye Ukraine =========================== U N I T E D K I N G D O M =========================== LLOYDS BANKING: Injects Capital Into Irish Unit ----------------------------------------------- Ian Guider and Andrew MacAskill at Bloomberg News report that Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc have injected EUR3.03 billion (US$4.4 billion) into their Irish units during the past 10 months amid rising real estate losses. According to Bloomberg, records in Dublin's Companies Registration Office show the two banks made a series of six payments, with the first in December and the most recent in August. RBS injected about EUR1.58 billion, while Lloyds sent EUR1.45 billion, Bloomberg discloses. Bloomberg notes the CRO records show Ulster Bank Holdings (ROI) Ltd. has received four capital injections from RBS since February, while Lloyds has provided its Bank of Scotland (Ireland) Ltd. unit with two payments since December. Bloomberg recalls RBS, 70% government-controlled, and Lloyds, 43% taxpayer-owned, were bailed out by Chancellor of the Exchequer Alistair Darling with GBP37 billion of public money 12 months ago. About Lloyds Banking Group PLC Lloyds Banking Group PLC, formerly Lloyds TSB Group plc, (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United Kingdom-based financial services group providing a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. The Company operates in three divisions: UK Retail Banking, Insurance and Investments, and Wholesale and International Banking. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Company also operates an international banking business with a global footprint in 40 countries. Services are offered through a number of brands, including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows, Clerical Medical and Cheltenham & Gloucester. On January 16, 2009, Lloyds Banking Group plc acquired HBOS plc. PALMER SQUARE: S&P Cuts Ratings on Four Classes of Notes to 'CC' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on all the notes issued by Palmer Square PLC, a European collateralized debt obligation of asset-backed securities transaction. According to the last trustee report available to S&P, the class A2, B, and C par value ratio tests have continued to fail. The rating actions reflect S&P's assessment of this further deterioration in the credit quality of the underlying portfolio due to its exposure to U.S. CDOs of ABS and residential mortgage- backed securities, which S&P has recently downgraded or placed on CreditWatch negative. A related factor in S&P's rating analysis is the share of assets in the underlying portfolio currently on CreditWatch negative. According to S&P's analysis, this is currently at a level of 25% of the portfolio by collateral balance. On April 6, S&P published S&P's revised assumptions related to structured finance assets with ratings on CreditWatch held within CDO transactions. Under these revised assumptions, S&P adjusted downward in S&P's analysis the ratings on these assets currently on CreditWatch negative by at least three notches. S&P believes there is a high likelihood that Palmer Square would not be able to repay the junior rated notes at par. As a result, the junior rated notes now face, in S&P's view, a high risk of nonpayment. S&P will continue to monitor the transaction's performance. Ratings List Ratings Lowered and Removed From Creditwatch Negative Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1-A BBB+ AA-/Watch Neg A1-B BBB+ AA-/Watch Neg A1-AE BBB+ AA-/Watch Neg A2-A B- BBB+/Watch Neg A2-B B- BBB+/Watch Neg B-1 CCC- BBB-/Watch Neg B-2 CCC- BBB-/Watch Neg C-1 CC CCC+/Watch Neg C-2 CC CCC+/Watch Neg D-1 CC CCC-/Watch Neg D-2 CC CCC-/Watch Neg ROYAL BANK: Still In Talks with Possible Buyers for Asian Assets ---------------------------------------------------------------- Jon Menon and Cathy Chan at Bloomberg News reports that Royal Bank of Scotland Group Plc said it was still talking to possible buyers for some its units in Asia after negotiations with Standard Chartered Plc broke down. Citing three people familiar with the discussions, Bloomberg discloses talks to sell RBS's assets in Malaysia, China and India broke down last week. On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported RBS posted a net loss of GBP1.04 billion in the first half of 2009, compared with GBP827 million a year earlier after setting aside GBP7.52 billion (US$12.62 billion) to cover bad loans and declining assets. Bloomberg said about 70% of RBS's losses came from its so-called non-core division, which includes assets the bank plans to sell or discontinue. According to Bloomberg, the bulk of the division is comprised of parts of the global banking and markets businesses, which include propriety trading and higher risk assets. The U.K. government owns 70% of RBS after it invested GBP20 billion last year to rescue the bank. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc and National Westminster Bank Plc, which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: To Finalize GBP4 Billion Share Placing -------------------------------------------------- Helia Ebrahimi at The Daily Telegraph reports that Royal Bank of Scotland Group plc will meet with investors this week to finalize the details of a GBP4 billion share placing. According to the report, the cash raised will be used to reduce the number of shares that RBS will need to give the UK government to cover the GBP19.5 billion entry fee for its Asset Protection Scheme to insure GBP325 billion of the bank's worst loans. On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported RBS posted a net loss of GBP1.04 billion in the first half of 2009, compared with GBP827 million a year earlier after setting aside GBP7.52 billion (US$12.62 billion) to cover bad loans and declining assets. Bloomberg said about 70% of RBS's losses came from its so-called non-core division, which includes assets the bank plans to sell or discontinue. According to Bloomberg, the bulk of the division is comprised of parts of the global banking and markets businesses, which include propriety trading and higher risk assets. The government owns 70% of RBS after it invested GBP20 billion last year to rescue the bank. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Injects Capital Into Irish Unit ------------------------------------------- Ian Guider and Andrew MacAskill at Bloomberg News report that Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc have injected EUR3.03 billion (US$4.4 billion) into their Irish units during the past 10 months amid rising real estate losses. According to Bloomberg, records in Dublin's Companies Registration Office show the two banks made a series of six payments, with the first in December and the most recent in August. RBS injected about EUR1.58 billion, while Lloyds sent EUR1.45 billion, Bloomberg discloses. Bloomberg notes the CRO records show Ulster Bank Holdings (ROI) Ltd. has received four capital injections from RBS since February, while Lloyds has provided its Bank of Scotland (Ireland) Ltd. unit with two payments since December. Bloomberg recalls RBS, 70% government-controlled, and Lloyds, 43% taxpayer-owned, were bailed out by Chancellor of the Exchequer Alistair Darling with GBP37 billion of public money 12 months ago. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. SOUTHERN CROSS: Operations Director Kamma Foulkes to Step Down -------------------------------------------------------------- Ed Hammond at The Financial Times reports that Kamma Foulkes, Southern Cross Healthcare Group plc's director of operations, will resign from the company. Ms. Foulkes, who had been in that role since early 2007, was responsible for about half of the group's operations, according to the FT. Ms. Foulkes's departure, which will also see her stepping down from the group’s board, will take effect on December 31, the FT discloses. The FT recalls Southern Cross ran into difficulty last summer when it sought a waiver of its banking covenants after it was unable to sell on a number of care homes it had bought. In the six months to the end of March, pre-tax losses widened 45% to GBP12.5 million, on revenue ahead 7% at GBP461 million, the FT states. Southern Cross Healthcare Group PLC, along with its subsidiaries -- http://www.schealthcare.co.uk/-- is engaged in the development and operation of care homes for the elderly and the provision of specialist services for people with physical and/or learning disabilities. The Company offers a range of care services, including nursing, residential and dementia care. During the fiscal year ended September 28, 2008, the Company operated 735 care homes and 37,425 beds. As of September 28, 2008, the Company had two business segments: elderly care (which incorporates the Southern Cross Healthcare and Ashbourne Senior Living brands) and specialist (being the Active Care Partnership business). In September 2009, the Company announced the sale of the freehold interest in Carnbroe Care Home to Umber Properties Limited. On September 3, 2009, the Company completed the transfer of the business and certain assets of the Sunchoice healthcare distribution division to Medline Europe Limited. UK RECEIVABLES: Moody's Reviews Ratings on 12 Classes of Notes -------------------------------------------------------------- Moody's Investors Service has placed under review for possible downgrade the ratings of 12 classes of asset-backed notes issued under UK Receivables Trust II, the Class B asset-backed notes issued by Chester Asset Receivables Dealings No.11 PLC, and the Class B of asset-backed notes issued by Chester Asset Receivables Dealings No.12 PLC under the UK Receivables Trust. A complete list of rating actions is below. UK Receivables Trust II: Issuers: Chester Asset Receivables Dealings 2001-B PLC, Chester Asset Receivables Dealings 2003-B PLC, Chester Asset Receivables Dealings 2003-C PLC, Chester Asset Receivables Dealings 2004-1 PLC -- GBP12,500,000 Asset Backed Floating Rate Notes due 2011, Class B, Series UK2001-B, A3 on review for downgrade -- GBP17,500,000 Asset Backed Floating Rate Notes due 2011, Class C, Series UK2001-B, Ba1 on review for downgrade -- GBP12,500,000 Asset Backed Floating Rate Notes due 2013, Class B, Series UK2003-B, A3 on review for downgrade -- GBP17,500,000 Asset Backed Floating Rate Notes due 2013, Class C, Series UK2003-B, Ba1 on review for downgrade -- EUR35,500,000 Asset Backed Floating Rate Notes due 2010, Class B, Series UK2003-C, A3 on review for downgrade -- EUR49,500,000 Asset Backed Floating Rate Notes due 2010, Class C, Series UK2003-C, Ba1 on review for downgrade -- GBP25,000,000 Asset Backed Floating Rate Notes due 2014, Class B, Series UK2004-1, A3 on review for downgrade -- GBP35,000,000 Asset Backed Floating Rate Notes due 2014, Class C, Series UK2004-1, Ba1 on review for downgrade Issuer: Chester Asset Receivables Dealings Issuer Limited -- Series 2004-B1 EUR125,000,000 Class B Asset Backed Floating Rate Notes due 2011, A3 on review for downgrade -- Series 2004-C1 EUR175,000,000 Class C Asset Backed Floating Rate Notes due 2011, Ba1 on review for downgrade -- Series 2006-B1 GBP50,000,000 Class B Asset Backed Floating Rate Notes due 2013, A3 on review for downgrade -- Series 2006-C1 GBP70,000,000 Class C Asset Backed Floating Rate Notes due 2013, Ba1 on review for downgrade Under UK Receivables Trust: Issuers: Chester Asset Receivables Dealings No. 11 PLC, Chester Asset Receivables Dealings No. 12 PLC -- GBP20,000,000 Asset Backed Floating Rate Notes due 2010, Class B, Chester Asset Receivables Dealings No.11 PLC, A3 on review for downgrade -- GBP12,000,000 Asset Backed Floating Rate Notes due 2011, Class B, Chester Asset Receivables Dealings No.12 PLC, A3 on review for downgrade This rating review is in part prompted by the rapid performance deterioration observed in the recent months, with charge-offs reaching over 15% in September. Furthermore, the forecast unemployment rate for 2010 combined with the level of indebtedness of UK families in general has led Moody's to expect charge-offs in the trust to increase further in coming months. Moody's is also currently reviewing the purchase rate assumption for both master trusts as Moody's considers that there is an increased likelihood that a stressed scenario where the trust balance may decline would be observed in relation to the trusts. The assumption on whether a pool balance is declining during the stressed scenario is a key consideration for the 'purchase rate' assumption for the trust and Moody's overall credit analysis. The concerns primarily stem from the relatively small size of MBNA's card business in EMEA in comparison to the core credit card franchise of Bank of America in the US and, in particular, the higher charge offs that have been observed in the recent months coupled with the expectation that this trend will continue over the course of 2010. As such, in Moody's opinion, the purchase rate assumption should be decreased in order for this assumption to be better aligned with the corresponding assumption for the core US portfolio and with assumptions taken in other credit card trusts rated by Moody's. Moody's believes that the current economic environment places more importance in making this adjustment. The Aaa ratings of the senior notes listed below issued under both master trusts were placed on review for possible downgrade on 3 March 2009. Since March's rating action, the Issuers have communicated to Moody's and the market that they are contemplating alternatives to increase the credit enhancement supporting the Notes and Moody's has remained in frequent dialogue with Bank of America. Moody's notes that in similar circumstances during the period 2005-2007 various issuers in the UK credit card sector have issued subordinated classes of notes to increase the credit enhancement available to the rated notes. Moody's will endeavor to conclude the review on all classes of notes in the next 45 days. In the absence of additional credit enhancement, the rating of the senior classes of notes would likely be downgraded a number of rating categories. Currently, but subject to further analysis, Moody's would expect this to be in the 'A' category. UK Receivables Trust II: Issuers: Chester Asset Receivables Dealings 2001-B PLC, Chester Asset Receivables Dealings 2002-A PLC, Chester Asset Receivables Dealings 2003-B PLC, Chester Asset Receivables Dealings 2003-C PLC, Chester Asset Receivables Dealings 2004-1 PLC -- GBP220,000,000 Asset Backed Floating Rate Notes due 2011, Class A, Series UK2001-B, current rating Aaa, on review for possible downgrade -- GBP220,000,000 Asset Backed Floating Rate Notes due 2013, Class A, Series UK2003-B, current rating Aaa, on review for possible downgrade -- EUR621,000,000 Asset Backed Floating Rate Notes due 2010, Class A, Series UK2003-C, current rating Aaa, on review for possible downgrade -- GBP440,000,000 Asset Backed Floating Rate Notes due 2014, Class A, Series UK2004-1, current rating Aaa, on review for possible downgrade Issuer: Chester Asset Receivables Dealings Issuer Limited -- Series 2004-A1 GBP300,000,000 Class A Asset Backed Floating Rate Notes due 2011, current rating Aaa, on review for possible downgrade -- Series 2004-A2 GBP250,000,000 Class A Asset Backed Floating Rate Notes due 2009, current rating Aaa, on review for possible downgrade -- Series 2006-A1 GBP250,000,000 Class A Asset Backed Floating Rate Notes due 2011, current rating Aaa, on review for possible downgrade -- Series 2008-A1 EUR350,000,000 Class A Asset Backed Floating Rate Notes due 2011, current rating Aaa, on review for possible downgrade -- Series 2008-A2 GBP300,000,000 Class A Asset Backed Floating Rate Notes due 2011, current rating Aaa, on review for possible downgrade UK Receivables Trust: Issuers: Chester Asset Receivables Dealings No. 11 PLC, Chester Asset Receivables Dealings No. 12 PLC -- EUR730,000,000 Asset Backed Floating Rate Notes due 2010, Class A, Chester Asset Receivables Dealings No.11 PLC, current rating Aaa, on review for possible downgrade -- GBP264,000,000 Asset Backed Floating Rate Notes due 2011, Class A, Chester Asset Receivables Dealings No.12 PLC, current rating Aaa, on review for possible downgrade In addition, Moody's is currently assessing the possible credit impact of certain trust provisions related to the occurrence of an originator "insolvency event" in the trusts - please refer to Moody's press release dated June 15, 2009 for further details. The last rating action on the senior notes was on March 3, 2009 when the notes were placed on review for possible downgrade. The last rating action on the mezzanine and subordinated notes was on December 9, 2008. Moody's ratings address only the credit risks associated with the transaction, other non-credit risks have not been addressed, but may have significant effect on yield to investors. Moody's ratings are subject to revision, suspension or withdrawal at any time at Moody's absolute discretion. The ratings are expressions of opinion and not recommendations to purchase, sell or hold securities. The rating is published. Moody's will publicly disseminate any change in the ratings through normal print and electronic media, and in response to requests to the Moody's rating desk, in accordance with Moody's standard practice at the time. Moody's will continue to monitor the transaction on an ongoing basis. * UK: Business Failures to Rise by More Than a Third in 2009 ------------------------------------------------------------ Alistair Gray at The Financial Times reports that recovery and restructuring specialist Begbies Traynor forecast that the number of UK business failures will rise by more than a third this year from the historically high levels seen during 2008 and could hit a fresh record over the next 12 months. Citing Nick Hood, a partner at Begbies Traynor, the FT discloses at least 30,000 companies will have fallen into liquidation, receivership or administration by the end of the year. According to the FT, debt-laden companies are struggling to stay within banking covenants as the recession squeezes revenues and margins. "There's going to be a real shortage of emergency funding for companies that get into trouble," the FT quoted Mr. Hood as saying. ********* 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 * * *