/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/091119.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, November 19, 2009, Vol. 10, No. 229 Headlines A U S T R I A MEDIAL WERBE: Claims Filing Deadline is November 27 SCHOBER & PARTNER: Claims Filing Deadline is November 26 TANSCHES BAU: Claims Filing Deadline is November 30 TISCON HANDEL: Claims Filing Deadline is November 27 VIPREAL IMMOBILIENENTWICKLUNG: Claims Filing Deadline is Nov. 27 V.P. BEWAEHRUNGSTECHNIK: Claims Filing Deadline is November 27 G E R M A N Y GENERAL MOTORS: To Cut Capacity at Opel, Vauxhall by Up to 25% THYSSENKRUPP AG: S&P Cuts Corporate Credit Ratings to 'BB+/B' * GERMANY: Ackermann Proposes Emergency Fund for Banks G R E E C E WIND HELLAS: Owner Files for Administration in English Court WIND HELLAS: S&P Downgrades Corporate Credit Rating to 'SD' I C E L A N D LANDSBANKI ISLANDS: Has ISK1.3 Trillion Priority Creditors' Claims I R E L A N D DRYDEN XIV: Moody's Confirms Rating on Class E-1 Notes at 'Caa1' RESOURCE EUROPE: Moody's Cuts Rating on Class E Notes to 'Caa3' * IRELAND: Hotels Sector Insolvent, Report Shows I T A L Y SEAT PAGINE: Moody's Downgrades Corporate Family Rating to 'B2' K A Z A K H S T A N ARK-DA LLP: Creditors Must File Claims by November 25 INFO MEDIA: Creditors Must File Claims by November 25 JANAOZEN LLP: Creditors Must File Claims by November 25 JFC LLP: Creditors Must File Claims by November 25 MURA LLP: Creditors Must File Claims by November 25 NATALI TUR: Creditors Must File Claims by November 25 ORLEU S: Creditors Must File Claims by November 25 RUND LLP: Creditors Must File Claims by November 25 SULZAK LLP: Creditors Must File Claims by November 25 SWISS LTD: Creditors Must File Claims by November 25 K Y R G Y Z S T A N MARUKO TRAVEL: Creditors Must File Claims by December 9 L A T V I A PAREX BANKA: Sale Likely in the First Quarter, CEO Says L U X E M B O U R G MELCHIOR CDO: Moody's Cuts Ratings on Two Classes of Notes to Ba2 N E T H E R L A N D S EUROCREDIT CDO: Moody's Junks Ratings on Two Classes of Notes LEOPARD CLO: Moody's Cuts Rating on Class D Notes to 'Caa3' LEOPARD CLO: Moody's Cuts Ratings on Two Classes of Notes to Caa3 R U S S I A ALGOS MEAT: Creditors Must File Claims by November 23 BAROKKO-STROY: R. Matrenin Named Temporary Insolvency Manager BMK-CONSTRUCTION: Creditors Must File Claims by November 23 DOM-STROY: Creditors Must File Claims by November 23 FAR EAST: Fitch Upgrades Issuer Default Rating to 'BB-' FLEXIBLE PACKING: Creditors Must File Claims by November 23 GRAD-BANK: Creditors Must File Claims by November 23 GRAD INVEST: Creditors Must File Claims by November 23 GRAND-GLASS: Creditors Must File Claims by November 23 INTER-STROY: Creditors Must File Claims by November 23 INTERNATIONAL INDUSTRIAL: Fitch Affirms 'D' Individual Rating MARIINSKAYA MEAT: A. Protodyakonov Named Insolvency Manager NEW OIL: Creditors Must File Claims by November 23 PARTNER SERVIS: Creditors Must File Claims by November 23 PENZA PRECISION: Yu.Petryushchenkov Named Insolvency Manager POVOLZHSKIY OIL: Creditors Must File Claims by November 23 SIBERIA WOOD: Creditors Must File Claims by November 23 STROY-SERVIS: Creditors Must File Claims by November 23 SVK-STROY: Creditors Must File Claims by November 23 TRANS-KHOLOD: Creditors Must File Claims by November 23 UC RUSAL: Deripaska Dismisses Michael Cherney's Ownership Claim ZHILEVSKIY PLASTIC: Creditors Must File Claims by November 23 * RYAZAN REGION: Fitch Affirms BB- Foreign & Loc. Currency Ratings * VOLOGDA REGION: Fitch Changes Outlook to Negative S P A I N BBVA EMPRESAS: Moody's Cuts Rating on Series C Notes to 'B3' GAT FTGENCAT: Moody's Cuts Rating on Class D Notes to 'Caa3' SANTANDER FINANCIACION: Moody's Junks Ratings on 3 Notes Classes S W I T Z E R L A N D ADVENTURES ON WHEELS: Claims Filing Deadline is November 20 BODYSOL GMBH: Claims Filing Deadline is November 20 CEO GMBH: Claims Filing Deadline is November 18 CORE AUDIT: Claims Filing Deadline is November 19 ELEKTRO-BADERTSCHER: Claims Filing Deadline is November 19 LA ROCCA: Claims Filing Deadline is November 19 LEISURE MARKETING: Claims Filing Deadline is November 19 PROVAST GMBH: Claims Filing Deadline is November 18 SAHLI + JORDI: Claims Filing Deadline is November 19 TB BADER: Claims Filing Deadline is November 18 U K R A I N E ABSOLUT INSURANCE: Creditors Must File Claims by November 22 AGRICULTURAL TECHNICAL: Creditors Must File Claims by November 22 AGROSERVICE LLC: Creditors Must File Claims by November 22 BERDICHEV MILK: Creditors Must File Claims by November 22 BILAZ-UKRAINE: Court Starts Bankruptcy Supervision Procedure CONTRACTINDUSTRY LLC: Creditors Must File Claims by November 22 ELIT-TRADE LLC: Creditors Must File Claims by November 22 FRUIT-PACK LLC: Creditors Must File Claims by November 22 NAFTOGAZ OF UKRAINE: EBRD Delays Ruling on US$300 Mln Loan NIRA TSAY: Creditors Must File Claims by November 22 UKRAINIAN ENERGETIC: Creditors Must File Claims by November 22 UKRPROMTRADE LTD LLC: Creditors Must File Claims by November 22 U N I T E D K I N G D O M ACORN PET: Business Sold; 153 Jobs Secured ADMIRAL TAVERNS: Completes Debt-for-Equity Swap Deal with Lloyds BRITISH AIRWAYS: Balloting on Industrial Action Begins CABLE & WIRELESS: Demerger Plans Won't Affect Moody's 'B1' Rating CABLE & WIRELESS: S&P Puts 'BB-' Rating on CreditWatch Positive EUROMASTR PLC: Fitch Junks Ratings on Two Tranches GKN HOLDINGS: Moody's Affirms Corporate Family Rating at 'Ba1' GYMOPHOBICS: Huddersfield Branch Placed in Administration HELLAS TELECOM: Files for Administration in English Court LLOYDS BANKING: To Write Off About GBP600 Mln of Admiral's Debt TATA MOTORS: JLR Secures GBP170 Mln Working Capital Facility TURBO BETA: Likely Covenant Breach Cues Moody's to Junk Ratings YOUR SPACE: CVA Proposal Approved by Members and Creditors * UK: Construction Sector Faces Challenges, Grant Thornton Says * UK: Businesses Face Worsening Access to Finance, Report Shows X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= MEDIAL WERBE: Claims Filing Deadline is November 27 --------------------------------------------------- Creditors of medial Werbe GmbH have until November 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 11, 2009 at 11:05 a.m. For further information, contact the company's administrator: Dipl. Ing. Mag. Michael Neuhauser Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 55 E-mail: wien@snwlaw.at SCHOBER & PARTNER: Claims Filing Deadline is November 26 -------------------------------------------------------- Creditors of Schober & Partner KG have until November 26, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 10, 2009 at 10:50 a.m. For further information, contact the company's administrator: Dr. Andrea Simma Favoritenstrasse 22/12a 1040 Vienna Austria Tel: 504 64 08 Fax: 504 64 08 22 E-mail: simma@mitrecht.com TANSCHES BAU: Claims Filing Deadline is November 30 --------------------------------------------------- Creditors of Tansches Bau GmbH have until November 30, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 9, 2009 at 10:00 a.m. For further information, contact the company's administrator: Mag. Philipp Casper Kalchbergg. 1 8010 Graz Austria Tel: 0316/83 05 50 Fax: 0316/81 37 17 E-mail: philipp.casper@kcp.at TISCON HANDEL: Claims Filing Deadline is November 27 ---------------------------------------------------- Creditors of Tiscon Handel GmbH have until November 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 10, 2009 at 11:30 a.m. For further information, contact the company's administrator: Mag. Petra Klingenschmid Wassergasse 20 2500 Baden Austria Tel: 02252/252 991 Fax: 02252/252991-25 E-mail: office@aurednik.at VIPREAL IMMOBILIENENTWICKLUNG: Claims Filing Deadline is Nov. 27 ---------------------------------------------------------------- Creditors of Vipreal Immobilienentwicklung GmbH have until November 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 11, 2009 at 10:55 a.m. For further information, contact the company's administrator: Mag. Daniel Lampersberger Esteplatz 4 1030 Vienna Tel: 712 33 30-0 Fax: 712 33 30 30 E-mail: kanzlei@engelhart.at V.P. BEWAEHRUNGSTECHNIK: Claims Filing Deadline is November 27 -------------------------------------------------------------- Creditors of V.P. Bewaehrungstechnik GmbH have until November 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 11, 2009 at 10:45 a.m. For further information, contact the company's administrator: Dr. Romana Weber-Wilfert Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 66 E-mail: wien@snwlaw.at ============= G E R M A N Y ============= GENERAL MOTORS: To Cut Capacity at Opel, Vauxhall by Up to 25% -------------------------------------------------------------- John Reed at The Financial Times reports that General Motors Co. said it planned to cut capacity by 20% to 25% and headcount by 9,000 to 10,000 at its European brands Opel and Vauxhall. The FT relates Nick Reilly, Opel's acting chief executive and head of GM's international operations, said the carmaker hoped to have agreement in principle on loans or guarantees from governments where it has plants within three weeks, and a restructuring plan implemented by the end of this year. GM, however, denied it would engage in a "bidding war" over jobs with European governments from which it is seeking aid, the FT notes. GM's European arm lost about US$400 million in the third quarter, the FT discloses. Mr. Reilly, as cited by the FT, said Opel had about US$2.5 billion of liquidity on hand, enough to last "well into the first quarter of next year". According to the FT, GM is seeking EUR3.3 billion (US$4.9 billion) to restructure Opel and invest in new products. GM would repay EUR400 million of an outstanding German government bridge loan not from Opel/Vauxhall, but from its own funds, the FT says. German Loan Patrick McGroarty and Roman Kessle at The Wall Street Journal report that Rainer Bruederle, Germany's new economics minister, said Monday that former offers of federal aid for Opel have to be reconsidered after GM reversed plans to sell control of the unit. "Just as any other company, [Opel] has the right to apply for new state help," the WSJ quoted Mr. Bruederle as saying at a financial conference. "It's a new situation that has emerged -- old deals need to be reconsidered." The WSJ relates Mr. Bruederle said Monday the aid offer was no longer binding, and in an interview with the Bild am Sonntag newspaper Sunday he suggested that states with Opel factories could contribute aid to GM's restructuring if they wished. Loan Repayments Bernard Simon and John Reed at The Financial Times report GM said it would begin repaying the outstanding US$6.7 billion of US government and US$1.4 billion of Canadian bail-out loans next month. The first payment would be worth US$1.2 billion, the FT states. GM, the FT discloses, reported a US$1.15 billion after- tax loss for the 83 days from then to the end of September. Vauxhall Robert Hutton at Bloomberg News reports U.K. Business Secretary Peter Mandelson said he had he had had a "positive meeting" with Mr. Reilly, to discuss the future of the car-maker's U.K. plants. "The future for Ellesmere Port and Luton plants looks positive," Bloomberg quoted Mr. Mandelson as saying. "GM has committed to Luton to 2013 and will look for other products. GM will be looking for financial support and the U.K. is prepared to underwrite it." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) THYSSENKRUPP AG: S&P Cuts Corporate Credit Ratings to 'BB+/B' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its long- and short-term corporate credit ratings on Germany-based industrial conglomerate ThyssenKrupp AG to 'BB+/B' from 'BBB-/A- 3'. At the same time, both the long- and short-term ratings were removed from CreditWatch, where they had been placed with negative implications on March 20, 2009, and on June 5, 2009, respectively. The outlook is stable. In addition, S&P assigned a recovery rating of '3' to ThyssenKrupp's EUR4.5 billion senior unsecured notes due 2011-2016 (Notes), indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. Under S&P's criteria, a '3' recovery rating leads us to rate the Notes at the same level as the long-term corporate credit rating. Consequently, S&P has lowered its issue rating on the Notes and other rated debt to 'BB+' from 'BBB-', and removed the issue rating from CreditWatch. "The downgrade reflects the sharp downturn in the steel and other industrial sectors, and its significant impact on operating performance and credit metrics," said Standard & Poor's credit analyst, Alex Herbert. "This is seen in reported losses before tax of EUR2.4 billion for the financial year to Sept. 30, 2009, and S&P's estimate of near zero funds from operations. "Furthermore, S&P is of the opinion that ThyssenKrupp faces weak recovery prospects, as S&P envisage subdued demand in end markets, where the effects of government stimulus measures may prove temporary, and the prospect of a sustained economic recovery is some way off." S&P believes that ThyssenKrupp's financial risk profile will likely not deteriorate further in the current financial year. Furthermore, downside risks are, in S&P's view, mitigated by its business risk profile and liquidity, which help to underpin the ratings. * GERMANY: Ackermann Proposes Emergency Fund for Banks ------------------------------------------------------ Aaron Kirchfeld and Christian Vits at Bloomberg News report that Deutsche Bank AG Chief Executive Officer Josef Ackermann proposed the creation of a European-wide fund to provide capital or unwind struggling banks. Bloomberg relates Mr. Ackerman in a speech Monday at the Euro Finance Week conference in Frankfurt said the fund could be co-financed by the financial industry and governments to help share the burden of rescuing banks. "It would be worthwhile to consider a fund that, in an emergency, could help banks recapitalize as well as support an orderly unwinding," Bloomberg quoted Mr. Ackermann as saying. "We could avoid midnight rescue actions with all the related problems." =========== G R E E C E =========== WIND HELLAS: Owner Files for Administration in English Court ------------------------------------------------------------ John Glover at Bloomberg News reports that Hellas Telecommunications II, the owner of Wind Hellas Telecommunications SA, said it filed for administration in the English High Court. Bloomberg recalls Hellas II, which is seeking to restructure as much as EUR3 billion (US$4.45 billion) of debt as Wind Hellas struggles with falling sales, moved its headquarters in August to London from Luxembourg, allowing it to take advantage of a so- called pre-packaged administration, using a scheme of arrangement. According to Bloomberg, Hellas II said in an e-mailed statement Tuesday that "at least a majority in aggregate principal amount" consented to the changes it asked for in its loan documentation. It also got the approval of bank lenders to the changes, Bloomberg discloses. Headquartered in Athens, WIND Hellas Telecommunications S.A. -- http://www.wind.com.gr/-- is part of Weather Investments, a global telecommunication group controlled by the Sawiris family and Naguib Sawiris. Weather also owns Wind Telecommunicazioni spa, the third largest mobile operator and second largest fixed line operator in Italy as well as a 50% plus one share of Orascom Telecom Holding S.A.E. * * * As reported in the Troubled Company Reporter-Europe on Sept. 8, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit ratings on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'CC' from 'CCC' on the group's weak second-quarter results and announcement that it was in talks with its shareholders about a potential restructuring of the group's capital structure. S&P said the outlook is negative. WIND HELLAS: S&P Downgrades Corporate Credit Rating to 'SD' ----------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'SD' from 'CC'. At the same time, S&P took the following rating actions on the company's debt instruments: S&P affirmed its 'CC' issue rating on the EUR1.125 billion senior secured notes due 2012 issued by WIND Hellas' wholly owned financial subsidiary Hellas Telecommunications (Luxembourg) V. The recovery rating on these notes is unchanged at '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default; S&P affirmed its 'C' issue rating on Hellas Telecommunications (Luxembourg) III's EUR355 million subordinated notes due 2013. The recovery rating on these notes is unchanged at '6', indicating S&P's expectation of negligible (0%-10%) recovery for unsecured creditors in the event of a payment default; S&P downgraded on Hellas Telecommunications (Luxembourg) II's EUR960 million and $275 million subordinated notes due 2015 to 'D'. The '6' recovery rating on these notes remains unchanged. S&P downgraded Hellas Telecommunications Finance SARL's EUR200 million payment-in-kind (PIK) notes to 'D'. The '6' recovery rating on these PIK notes remains unchanged. "The rating actions chiefly reflect WIND Hellas' failure to pay financial interest on its EUR960 million and $275 million subordinated floating notes due 2015," said Standard & Poor's credit analyst Melvyn Cooke. The company had until Nov. 16, 2009, when the grace period for payment expired, to avoid defaulting under the subordinated notes' indentures. "S&P's downgrade also follows WIND Hellas' recently announced capital restructuring plan under which it would write off all its junior debt under U.K. insolvency laws and existing shareholder Weather Investments SpA would inject a total of EUR125 million into the business," added Mr. Cooke. WIND Hellas missed the interest payment on its subordinated notes on the original Oct. 15, 2009, due date, stating at the time that it was working on plans to restructure its balance sheet and to preserve liquidity. Under the notes' indentures, the company then had 30 days to make the payment before defaulting on the notes. S&P could raise the corporate credit and issue ratings on WIND Hellas on completion of the restructuring, most likely no higher than the 'CCC' or 'CC' categories, however. At this stage, however, S&P lack all the necessary information to assess the potential rating level of the company post-restructuring. S&P would need, in particular, detailed strategy and liquidity updates, management's operating forecasts over the next few years and underlying assumptions, and information on the new covenants. ============= I C E L A N D ============= LANDSBANKI ISLANDS: Has ISK1.3 Trillion Priority Creditors' Claims ------------------------------------------------------------------ Omar R. Valdimarsson at Bloomberg News reports that Landsbanki Islands hf said approved priority claims from creditors against the bank amount to ISK1.3 trillion (US$10.3 billion). Bloomberg discloses creditors are seeking to recoup as much as US$28 billion in loans since the bank's collapse, the largest bankruptcy in Iceland's history. According to Bloomberg, the priority claims include a ISK260 billion (US$2.1 billion) 10-year bond the new unit of Landsbanki will provide to the resolution committee of the failed bank as compensation for assets transferred from the old unit to the new. Bloomberg relates the committee overseeing the resolution of creditors' claims has said as much as 89% of priority claims will be covered by liquidating the bank's assets. About Landsbanki Islands Landsbanki Islands hf, also commonly known as Landsbankinn in Iceland, is an Icelandic bank. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki and two other major banks. Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr. S.D. N.Y. Case No.: 08-14921). Gary S. Lee, Esq., at Morrison & Foerster LLP, represents the Debtor. When it filed for protection from its creditors, it listed assets and debts of more than US$1 billion each. As reported in the Troubled Company Reporter-Europe on June 18, 2009, on June 15, 2009, British authorities revoked the October 2008 Freezing Order on the assets of Landsbanki in Britain, which were set using anti-terrorism legislation. Following the fall of Iceland's three largest banks, Icelandic banking assets in the UK were frozen on October 8, 2008 using anti-terrorism laws. The Icelandic government has ever since protested the application of this legislation against Iceland. ============= I R E L A N D ============= DRYDEN XIV: Moody's Confirms Rating on Class E-1 Notes at 'Caa1' ---------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Dryden XIV - Euro CLO 2006 Plc. -- EUR312.5M Class A-1 Senior Floating Rate Notes, Downgraded to Aa1; previously on Aug 17, 2006 Definitive Rating Assigned Aaa -- EUR35M Class B-1 Senior Floating Rate Notes, Downgraded to A3; previously on Mar 4, 2009 Aa2 Placed Under Review for Possible Downgrade -- EUR28M Class C-1 Mezzanine Deferrable Interest Floating Rate Notes, Downgraded to Ba1; previously on Mar 19, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade -- EUR18M Class D-1 Mezzanine Deferrable Interest Floating Rate Notes, Downgraded to B1; previously on Mar 19, 2009 Downgraded to Ba3 and Remained On Review for Possible Downgrade -- EUR27M Class E-1 Mezzanine Deferrable Interest Floating Rate Notes, Confirmed at Caa1; previously on Mar 19, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade -- EUR6M Class Q Combination Note, Downgraded to Ba1; previously on Mar 4, 2009 A3 Placed Under Review for Possible Downgrade -- EUR10M Class S Combination Note, Withdrawn; previously on Mar 4, 2009 Baa3 Placed Under Review for Possible Downgrade The rating of Class S Combination Notes was withdrawn given that these notes were previously split back into their original components and the current balance is zero. This transaction is a managed cash leveraged loan collateralized loan obligation with exposure to predominantly European senior secured loans, as well as 7.98% mezzanine loan exposure. 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 2653) and an increase in the amount of defaulted securities (currently 5% of the portfolio). These measures were taken from the recent trustee report dated 05 October 2009. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality. In addition to the quantitative factors that are explicitly modelled, qualitative factors are part of the rating committee considerations. These qualitative factors include for instance the structural protections in this transaction, the resilience of this deal relative to other similar transactions in the current market environment, and the collateral manager's track record. 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. RESOURCE EUROPE: Moody's Cuts Rating on Class E Notes to 'Caa3' --------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Resource Europe CLO I: -- EUR211.05M Class A Senior Secured Floating Rate Notes due 2023, Downgraded to Aa3; previously on June 21, 2007 Assigned Aaa; -- EUR18.8M Class B Senior Secured Deferrable Rate Notes due 2023, Downgraded to Baa3; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade; -- EUR17.28M Class C Senior Secured Deferrable Floating Rate Notes due 2023, Downgraded to Ba3; previously on March 18, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade; -- EUR18.05M Class D Senior Secured Deferrable Floating Rate Notes due 2023, Downgraded to Caa2; previously on March 18, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade; -- EUR6.35M Class E Senior Secured Deferrable Floating Rate Notes due 2023, Downgraded to Caa3; previously on March 18, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade; -- EUR5M Class W Combination Notes due 2023, Downgraded to Caa1; previously on March 4, 2009 Baa3 Placed Under Review for Possible Downgrade; -- EUR8M Class X Combination Notes due 2023, Downgraded to B2; 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 approximately 9.2% mezzanine loan exposure. 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 2810), an increase in the amount of defaulted securities (currently 1.4% of the portfolio), an increase in the proportion of securities from issuers rated Caa1 and below (currently 5.2% of the portfolio). These measures were taken from the recent trustee report dated 21 September 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. * IRELAND: Hotels Sector Insolvent, Report Shows ------------------------------------------------ Citing a report by economic consultant Peter Bacon, Laura Slattery at The Irish Times says that a quarter of hotel rooms in Ireland need to be closed down urgently because the hotels sector in its entirety is insolvent. According to the Irish Times, the report, which was commissioned by the Irish Hotels Federation, states the "orderly elimination" of about 15,000 hotel rooms should begin before next year's peak summer season. The Irish Times relates Mr. Bacon said many of the hotels built as a result of tax breaks were now insolvent, but the banks that had financed their development were not foreclosing on the developers' loans in order to avoid a negative impact on their balance sheets. "The burden of adjustment that you would expect to see on bank balance sheets is being pushed out to the hotels sector," the Irish Times quoted Mr. Bacon as saying at the launch of his report in Dublin Wednesday last week. "The result is that the entire hotels sector is being compromised and its sustainability and viability in the future is being questioned." ========= I T A L Y ========= SEAT PAGINE: Moody's Downgrades Corporate Family Rating to 'B2' --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating and the Probability of Default Rating of SEAT Pagine Gialle SpA to B2 from B1. At the same time, Moody's downgraded the rating on the company's EUR1.3 billion 8% senior notes due 2014 issued by Lighthouse International Company SA to Caa1 from B3. The outlook for the ratings is negative. The rating action follows the company's Q3 2009 earnings call, where SEAT's management has said that it expects Italian print revenues for H1 2010 are likely to be similar to those to 9M 2009 (i.e. -13.2% y-o-y), before some improvement that may occur in H2 2010 from a combination of economic recovery and an aggressive launch of new multimedia packages to acquire new customers. Moody's understands that, in 2010, (i) management will undertake cost-cutting measures on a larger scale than contemplated for the current year, and (ii) online revenue growth should outperform forecast online ad market growth (10-12%). However, the rating action reflects that, together with the continuing investment requirements in its core Italian market, such top-line results are likely to continue to undermine the group's free cash flow generation capacity while putting pressure on SEAT's liquidity profile and deleveraging prospects. The negative outlook reflects Moody's increased concerns, in light of the limited visibility, regarding the company's ability to comfortably remain in compliance with its senior credit facility covenants, particularly to December 2010. Moody's notes that the ratings assume that the company's asset- backed securitization program will remain available and broadly unchanged until the program ends in 2011, together with the two annually renewed back-up facilities -- notwithstanding any potential deterioration in the quality of SEAT's receivables and/or the company's ratings. The last rating action on SEAT was implemented on 13 January 2009, when Moody's downgraded the company's CFR to B1 from Ba3 with a stable outlook. SEAT's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as (i) the business risk and competitive position of the company versus others within its industry, (ii) the capital structure and financial risk profile of the company, (iii) the projected performance of the company over the near to intermediate term, and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of SEAT's core industry and SEAT's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Turin, Italy, SEAT is the leading publisher and provider of directory services in Italy and, through its wholly- owned subsidiary, TDL, is the number three directories publisher in the UK. SEAT also has a presence in Germany through Telegate, the second-largest player in the German directory-assistance market. =================== K A Z A K H S T A N =================== ARK-DA LLP: Creditors Must File Claims by November 25 ----------------------------------------------------- Creditors of LLP Ark-Da have until November 25, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan The court commenced bankruptcy proceedings against the company on July 28, 2009. INFO MEDIA: Creditors Must File Claims by November 25 ----------------------------------------------------- LLP Company Info Media Group is currently undergoing liquidation. Creditors have until November 25, 2009, to submit proofs of claim to: Azerbaev Str. 69 Almaty Kazakhstan JANAOZEN LLP: Creditors Must File Claims by November 25 ------------------------------------------------------- Creditors of LLP Janaozen have until November 25, 2009, to submit proofs of claim to: Post Office Box 437 OPS-1 Aktau Kazakhstan The Specialized Inter-Regional Economic Court of Aktau commenced bankruptcy proceedings against the company on July 16, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Aktau Building of Former Kindergarten 51 Micro District 27 Aktau Kazakhstan JFC LLP: Creditors Must File Claims by November 25 -------------------------------------------------- Creditors of LLP JFC have until November 25, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on July 24, 2009. MURA LLP: Creditors Must File Claims by November 25 --------------------------------------------------- Creditors of LLP Mura have until November 25, 2009, to submit proofs of claim to: Post Office Box 437 OPS-1 Aktau Kazakhstan The Specialized Inter-Regional Economic Court of Aktau commenced bankruptcy proceedings against the company on July 16, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Aktau Building of Former Kindergarten 51 Micro District 27 Aktau Kazakhstan NATALI TUR: Creditors Must File Claims by November 25 ----------------------------------------------------- Creditors of LLP Natali Tur have until November 25, 2009, to submit proofs of claim to: Nezavisimosti Ave. 40-61 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on September 9, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk Kazakhstan ORLEU S: Creditors Must File Claims by November 25 -------------------------------------------------- Creditors of LLP Orleu S have until November 25, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on July 31, 2009. RUND LLP: Creditors Must File Claims by November 25 --------------------------------------------------- Creditors of LLP Rund have until November 25, 2009, to submit proofs of claim to: Kurmangazy Str. 96 Uralsk West Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of West Kazakhstan commenced bankruptcy proceedings against the company on July 16, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of West Kazakhstan Seifullin Str. 37 Uralsk West Kazakhstan Kazakhstan SULZAK LLP: Creditors Must File Claims by November 25 ----------------------------------------------------- Creditors of LLP Sulzak have until November 25, 2009, to submit proofs of claim to: Nezavisimosti Ave. 40-61 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on September 9, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk Kazakhstan SWISS LTD: Creditors Must File Claims by November 25 ---------------------------------------------------- LLP Swiss Ltd. is currently undergoing liquidation. Creditors have until November 25, 2009, to submit proofs of claim to: Furmanov Str. 244 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== MARUKO TRAVEL: Creditors Must File Claims by December 9 ------------------------------------------------------- LLC Maruko Travel is currently undergoing liquidation. Creditors have until December 9, 2009, to submit proofs of claim: Inquires can be addressed to (+996 312) 69-75-95 =========== L A T V I A =========== PAREX BANKA: Sale Likely in the First Quarter, CEO Says ------------------------------------------------------- Niklas Magnusson and Aaron Eglitis at Bloomberg News reports that Parex Banka AS may be sold by as early as the first quarter as European banks and private equity firms show interest in the company. Bloomberg relates Parex Chief Executive Officer Nils Melngailis said Tuesday the company will be split into a bank and a fund holding units that aren�t part of its main business by the end of this year in preparation for the sale of both entities. "We have attracted interest from mostly European banks, both from ones who are in this market and from banks who wish to enter this market," Bloomberg quoted Mr. Melngailis as saying. "We plan to get restructuring done by the end of this year and a sale will take place in the first quarter at the earliest." Bloomberg recalls Latvia had to turn to a group led by the European Commission and International Monetary Fund for a EUR7.5 billion (US$11.2 billion) loan after Parex failed following a run on deposits. According to Bloomberg, a sale of Parex would free up money for the government, which has poured about LVL1 billion (US$2.1 billion) into Parex in the form of capital increases, deposits and guarantees. About Parex Banka Founded in May 1992, JSC Parex Banka a.k.a Parex Banka AS -- http://www.parexgroup.com/-- is a commercial bank with assets exceeding 4.46 billion. It offers its clients integrated services in areas such as lending, payment cards, leasing, asset management and securities trading. It has more than 70 branches, customer service centers and settlement group, or nearly all regions of Latvia and the major cities. Currently, bank branches and customer service centers in Latvia employs more than 2,600 people. * * * As reported by the Troubled Company Reporter-Europe on Aug. 3, 2009, Moody's Investors Service affirmed Parex Bank's E bank financial strength rating, the outlook on which remains stable. In affirming the bank's E BFSR, which maps to a baseline credit assessment of Caa1, the rating agency noted the bank's impaired franchise value and weakened financial performance, especially in terms of asset quality and profitability. Moody's also noted the bank's weak liquidity position on a standalone basis (i.e. excluding Moody's assessment of the probability of external support). =================== L U X E M B O U R G =================== MELCHIOR CDO: Moody's Cuts Ratings on Two Classes of Notes to Ba2 ----------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Melchior CDO I S.A -- EUR256M Class A Floating Rate Notes, due 2013, Downgraded to A3; previously on Aug 27, 2001 Assigned Aaa -- EUR32M Class B-1 Floating Rate Notes, due 2013, Downgraded to Caa2; previously on Mar 20, 2009 Downgraded to Ba2 and Remained On Review for Possible Downgrade -- EUR20M Class B-2 Fixed Rate Notes, due 2013, Downgraded to Caa2; previously on Mar 20, 2009 Downgraded to Ba2 and Remained On Review for Possible Downgrade This transaction is a managed leveraged loan collateralized loan obligation with exposure (whether synthetic or cash) to loans, high yield debt and structured finance securities of issuers and borrowers in Europe, Canada and the United States. According to Moody's, the rating actions taken on the notes are the result of a severe 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 3960), the amount of defaulted securities (currently 6% of the portfolio), the proportion of securities from issuers rated Caa1 and below (currently 33.5% of the portfolio), a failure of Class C and Class D par value tests, an important exposure to structured finance securities (currently 20.3% of the portfolio) and a 15% bucket of loans having a maturity falling after the maturity of the notes. These measures were taken from the recent trustee report dated 15 October 2009. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality combined with a decrease in the expected recovery rates, and a decrease in the recovery value of the long dated loans. Due to the impact of all the below mentioned 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 bucket of long dated loans, the maturities of number of structured finance securities may also potentially exceed the legal maturity of the notes issued by Melchior CDO I S.A. Such long dated structured finance securities may therefore have to be sold at maturity of the notes, exposing investors to market risk. The rating actions also 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. 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. ===================== N E T H E R L A N D S ===================== EUROCREDIT CDO: Moody's Junks Ratings on Two Classes of Notes ------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Eurocredit CDO IV B.V.: -- EUR252,000,000 Class A-1 Senior Secured Floating Rate Notes due 2020 (currently EUR249,206,056 outstanding), Downgraded to Aa1; previously on November 22, 2004 Assigned Aaa; -- EUR23,000,000 Class A-2 Senior Secured Floating Rate Notes due 2020, Downgraded to A3; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade; -- EUR8,500,000 Class B-1 Senior Secured Deferrable Floating Rate Notes due 2020, Downgraded to Ba2; previously on March 20, 2009 Downgraded to Ba1 and Remained On Review for Possible Downgrade; -- EUR12,500,000 Class B-2 Senior Secured Deferrable Fixed Rate Notes due 2020, Downgraded to Ba2; previously on March 20, 2009 Downgraded to Ba1 and Remained On Review for Possible Downgrade; -- EUR750,000 Class C-1 Senior Secured Deferrable Floating Rate Notes due 2020, Downgraded to Caa2; previously on March 20, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade; -- EUR17,750,000 Class C-2 Senior Secured Deferrable Fixed Rate Notes due 2020, Downgraded to Caa2; previously on March 20, 2009 Downgraded to B1 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 21% mezzanine obligations and high yield bonds exposure. 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 2799), an increase in the amount of defaulted securities (currently 8% of the portfolio), an increase in the proportion of securities from issuers rated Caa1 and below (currently 9.8% of the portfolio), and a failure of the Class C par value test. These measures were taken from the recent trustee report dated September 22, 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. LEOPARD CLO: Moody's Cuts Rating on Class D Notes to 'Caa3' ----------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Leopard CLO II B.V. The Class A-1 remains Aaa mainly due to its current relatively high over collateralization level and the fact that the deal has moved out of the reinvestment phase and has begun to amortize. -- Class A-2 Senior Secured Floating Rate Notes due 2019, Downgraded to Baa1; previously on Mar 4, 2009 Aa2 Placed Under Review for Possible Downgrade -- Class B Senior Secured Deferrable Floating Rate Notes due 2019, Downgraded to Ba3; previously on Mar 20, 2009 Downgraded to Ba1 and Remained On Review for Possible Downgrade -- Class C Senior Secured Deferrable Floating Rate Notes due 2019, Downgraded to B3; previously on Mar 20, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade -- Class D Senior Secured Deferrable Floating Rate Notes due 2019, Downgraded to Caa3; previously on Mar 20, 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 18.0% exposure to mezzanine loan obligations. 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 2664), an increase in the amount of defaulted securities (currently 2.36% of the portfolio), an increase in the proportion of securities from issuers rated Caa1 and below (currently 9.10% of the portfolio are classified as CCC Obligations), and a failure of Class D par value test. These measures were taken from the recent trustee report dated 15 October 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 this transaction, the recent deal performance relative to other CLOs in the current market environment, the collateral manager's track record, and the fact this transaction is in its amortization phase. 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. LEOPARD CLO: Moody's Cuts Ratings on Two Classes of Notes to Caa3 ----------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Leopard CLO V B.V. -- EUR100M Multicurrency Senior Secured Floating Rate Variable Funding Notes due 2023 (currently EUR 75,429,455 outstanding), Downgraded to Aa1; previously on Jun 15, 2007 Assigned Aaa -- EUR168M Class A Senior Secured Floating Rate Notes due 2023, Downgraded to Aa1; previously on Jun 15, 2007 Assigned Aaa -- EUR28M Class B Secured Deferrable Floating Rate Notes due 2023, Downgraded to Baa1; previously on Mar 4, 2009 Aa2 Placed Under Review for Possible Downgrade -- EUR13M Class C-1 Secured Deferrable Floating Rate Notes due 2023, Downgraded to Ba2; previously on Mar 17, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade -- EUR7M Class C-2 Secured Deferrable Fixed Rate Notes due 2023, Downgraded to Ba2; previously on Mar 17, 2009 Downgraded to Baa3 and Remained On Review for Possible Downgrade -- EUR26M Class D Secured Deferrable Floating Rate Notes due 2023, Downgraded to B2; previously on Mar 17, 2009 Downgraded to B1 and Remained On Review for Possible Downgrade -- EUR13M Class E-1 Secured Deferrable Floating Rate Notes due 2023, Downgraded to Caa3; previously on Mar 17, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade -- EUR3M Class E-2 Secured Deferrable Fixed Rate Notes due 2023, Downgraded to Caa3; previously on Mar 17, 2009 Downgraded to Caa1 and Remained On Review for Possible Downgrade -- EUR7M Class F Secured Deferrable Floating Rate Notes due 2023, Downgraded to Ca; previously on Mar 17, 2009 Downgraded to Caa3 and Remained On Review for Possible Downgrade -- EUR5M Class K Combination Notes due 2023, Downgraded to Ba1; previously on Mar 4, 2009 A2 Placed Under Review for Possible Downgrade -- EUR10M Class T Combination Notes due 2023, Downgraded to B2; previously on Mar 4, 2009 Baa3 Placed Under Review for Possible Downgrade -- EUR5M Class W Combination Notes due 2023, Downgraded to Ba2; previously on Mar 4, 2009 A3 Placed Under Review for Possible Downgrade This transaction is a managed CLO with exposure to predominantly European senior secured loans, as well as 16% mezzanine and second lien loan exposure. 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 a slight 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 2,747) and a failure of the Class F par value test, currently at 102.72% compared to 108.52% a year ago. These measures were taken from the recent trustee report dated 30 September 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. =========== R U S S I A =========== ALGOS MEAT: Creditors Must File Claims by November 23 ----------------------------------------------------- Creditors of LLC Algos Meat-Processing Plant (TIN 2539038696) have until November 23, 2009, to submit proofs of claims to: V. Zheludenko Temporary Insolvency Manager Borodinskaya Str. 61G Vladivostok Russia The Arbitration Court of Primorskiy will convene at 1:00 p.m. on January 27, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ? 51�6702/2009. The Debtor can be reached at: LLC Algos Pologaya Str. 36 Vladivostok Russia BAROKKO-STROY: R. Matrenin Named Temporary Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Amurskaya appointed R. Matrenin as Temporary Insolvency Manager for LLC Barokko-Stroy-Plus (Construction). The case is docketed under Case No. ?04� 5659/2009B. He can be reached at: Post User Box 11\9 Blagoveshchensk 680000 Khabarovsk Russia The Debtor can be reached at: LLC Barokko-Stroy-Plus Amurskaya Str. 91 Blagoveshchensk Amurskaya Russia BMK-CONSTRUCTION: Creditors Must File Claims by November 23 ----------------------------------------------------------- Creditors of LLC BMK-Construction Complex (TIN 7725510386, PSRN 1047796343660) have until November 23, 2009, to submit proofs of claims to: A. Borunov Temporary Insolvency Manager Apt. 606 Building 1 Mira Prospect 68 129110 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure. The case is docketed under Case No. ?40�102994/09�95� 486B. The Debtor can be reached at: LLC BMK-Construction Complex IVana Franko Str. 44 121351 Moscow Russia DOM-STROY: Creditors Must File Claims by November 23 ---------------------------------------------------- Creditors of LLC Dom-Stroy-2000 (TIN 3015043450, PSRN 1023000828993) (Construction) have until November 23, 2009, to submit proofs of claims to: N. Yakusheva Temporary Insolvency Manager Kryukova Str. 40 400069 Volgograd Russia The Arbitration Court of Astrakhanskaya will convene on February 11, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?06�5507/2009. The Debtor can be reached at: LLC Dom-Stroy-2000 Savushkina Str. 4 414056 Astrakhan Russia FAR EAST: Fitch Upgrades Issuer Default Rating to 'BB-' ------------------------------------------------------- Fitch Ratings has upgraded OJSC Far East Telecom's (also known as OAO Dalsvyaz) Long-term foreign currency Issuer Default rating to 'BB-' from 'B+'. The Outlook on the Long-term IDR is Stable. Fitch has also affirmed Far East Telecom's Short-term foreign currency IDR at 'B'. The upgrade reflects improvements in Far East Telecom's credit metrics. These include a decrease of leverage (net debt/EBITDA) to below 1x, as well as positive free cash flow generation in 2007-2008 which Fitch expects to continue in the medium term due to moderate capex the agency estimates at 18%-21% of revenue. Far East Telecom's leverage of 0.9x at end-2008 was the lowest among its peers. Fitch does not expect leverage to increase above 1.0x at end-2009 and for it to gradually decrease afterwards despite the debt-financed acquisition of a 49% stake in OJSC Sakhatelecom in October 2009. OJSC Sakhatelecom is a fixed-line incumbent operating in the Republic of Sakha (Yakutia) ('BB'/Stable Outlook/'B') within the Russian Federation ('BBB'/Negative Outlook/'F3'). On a positive note, Fitch recognizes that all Far East Telecom's debt is denominated in roubles, so the company is not exposed to a foreign-currency risk. Far East Telecom's ratings are supported by its stable operational performance and resilient EBITDA generation during the economic downturn. In 2008, Far East Telecom's EBITDA rose 11.7% and the EBITDA margin widened to 33.3% from 32.0% as a result of cost control. Fitch expects the margin to be close to 34% at end-2009, although further growth may be constrained by the specific geographic conditions of the company's operating area in the far- eastern region of Russia, with vast unpopulated spaces and long distances between cities. The ratings also positively factor in Far East Telecom's dominant market position in the fixed-line voice and broadband segments (90% and 75% of the market at end-2008, respectively) in its operating territory. Due to the company's extensive "last mile" network and the high capex needed to develop comparable alternative infrastructure, its market position is likely to remain unrivalled in the medium term, in the absence of local loop unbundling regulation. Fitch further notes that 50.56% of Far East Telecom's ordinary shares are held by the Russian government-controlled telecommunications holding company OJSC Svyazinvest. Although Far East Telecom's operational ties with the holding company are weak and direct financial support from Svyazinvest is unlikely, Fitch believes that Svyazinvest may provide Far East Telecom with lobbying support in obtaining financing from state-controlled banks, if needed. At the same time, Far East Telecom's ratings are constrained by refinancing risks resulting from a significant share of short-term debt in its portfolio (including a RUB1.4bn bond put option in June 2010) which is not covered by existing liquidity. However, Fitch believes that these risks are manageable and that Far East Telecom will be able to procure new bank debt to refinance its short-term maturities, considering the company's stable operational performance, low leverage and potential lobbying support from Svyazinvest. Far East Telecom may also tap the domestic bond market to raise liquidity if needed, which Fitch expects would be successful, as Far East Telecom would likely be considered a quality issuer. The agency believes the company could also postpone part of its capex for some time if additional liquidity is needed to pass debt repayment peaks. FLEXIBLE PACKING: Creditors Must File Claims by November 23 ----------------------------------------------------------- Creditors of LLC Flexible Packing Materials have until November 23, 2009, to submit proofs of claims to: A. Dyachenko Insolvency Manager K. Marksa Str. 13/1 Kumertau 453300 Bashkortostan Russia Tel: 8 (34761) 4-11-60 8 (34761) 4-79-45 The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ? 82 -7343/2009�72-B/92. The Debtor can be reached at: LLC Flexible Packing Materials Mendeleeva Sq. 2 Pereslavl-Zamesskiy Yaroslavskaya Russia GRAD-BANK: Creditors Must File Claims by November 23 ---------------------------------------------------- Creditors of OJSC Grad Bank Joint Stock Bank (TIN 2702070203, Registration No. 2750) have until November 23, 2009, to submit proofs of claims to: Investment Insurance Agency Insolvency Manager Dikopoltseva Str. 4 680021 Khabarovsk Russia The Arbitration Court of Khabarovskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?73�14045/2009. The Debtor can be reached at: OJSC Grad Bank Dikopoltseva Str. 4 680021 Khabarovsk Russia GRAD INVEST: Creditors Must File Claims by November 23 ------------------------------------------------------ Creditors of CJSC Grad Invest (TIN 7715603017, PSRN 1067746625055) (Construction) have until November 23, 2009, to submit proofs of claims to: I. Menshikov Insolvency Manager Post User Box 11 Building 1 Molodogvardeyskaya Str. 9 121467 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?40�115675/09�18-567B. The Debtor can be reached at: CJSC Grad Invest Building 7 Skladochnaya Str. 3 127018 Moscow Russia GRAND-GLASS: Creditors Must File Claims by November 23 ------------------------------------------------------ Creditors of LLC Grand-Glass (TIN 4205135447) have until November 23, 2009, to submit proofs of claims to: M. Chereshko Insolvency Manager Post User Box 2299 650070 Kemerovo Russia The Arbitration Court of Kemerovskaya will convene on February 4, 2010, to hear bankruptcy proceedings. The case is docketed under Case No. ?27�17258/2009. The Debtor can be reached at: LLC Grand-Glass Radishcheva Str. 1 650024 Kemerovo Russia INTER-STROY: Creditors Must File Claims by November 23 ------------------------------------------------------ Creditors of LLC Inter-Stroy (TIN 3442077326, PSRN 1053477203504) (Construction) have until November 23, 2009, to submit proofs of claims to: V. Bashmakov Temporary Insolvency Manager Post User Box 251 400005 Vilgograd Russia The Arbitration Court of Volgogradskaya will convene on February 16, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?12�17425/2009. The Debtor can be reached at: LLC Inter-Stroy Kommunisticheskaya Str. 21 400131 Volgograd Russia INTERNATIONAL INDUSTRIAL: Fitch Affirms 'D' Individual Rating ------------------------------------------------------------- Fitch Ratings has affirmed Russia-based International Industrial Bank's (IIB) ratings at Long-term Issuer Default 'B', Short-term IDR 'B', Individual 'D', Support '5' and National Long-term 'BBB(rus)'. The Support Rating Floor is also affirmed at 'No Floor'. The Outlooks for the Long-term IDR and National Long-term rating are Stable. The ratings reflect IIB's limited franchise and high business concentrations, including with related parties, weaknesses in the bank's funding profile and tight liquidity position. At the same time, the ratings also consider IIB's strong capitalization and moderate loan impairments to date. IIB's dependence on funding from the Central Bank of Russia has grown since Q408 and the latter remains the bank's most important creditor, accounting for 40% of end-Q309 liabilities. Funding from the CBR is mainly unsecured (six-12 months) borrowings, which have been rolled over regularly during 2009, with the majority now maturing in May-July 2010. The bank's policy is to maintain this funding source while it continues to be available, although its sustainability beyond the short term is questionable, in Fitch's view. As an alternative, the bank believes it could replace unsecured CBR funding by facilities collateralized by loans in an almost equal amount, although Fitch notes it could take some time to receive such facilities. At end-Q309, the 20 largest client deposits accounted for a high 78% of client funds or 22% of liabilities, while related parties contributed around 30% of client accounts or 10% of liabilities. Although this could lead to increased liquidity pressure in case of large deposit withdrawals, Fitch notes that this has been adequately managed so far, and most customer funding consists of term deposits. Highly liquid assets (defined as cash and equivalents, unpledged government securities and net short-term interbank assets) represented a low 3% of total assets or just 15% of client accounts at end-Q309, albeit a stronger 46% of current accounts. Liquidity is also supported by the amortization of the loan book, which is largely short-term. Near-term repayments of foreign borrowings are considerable (eurobonds of US$150 million maturing in February 2010 and EUR200 million in July 2010, in total equal to 12% of end-Q309 liabilities), although upcoming loan amortization payments should allow the bank to meet its funding maturities and refinancing of loans with the CBR remains an additional potential source of liquidity. IIB's lending grew by around 15% in 9M09, backed by the CBR funds, mainly through the corporate segment (including state-controlled companies), which is the bank's primary focus. Lending remains concentrated: the 20 largest groups of borrowers -- of which almost half was represented by investment loans (including to related parties and their business partners) -- reportedly made up 20% of loans, equal to 66% of equity at end-Q309 (IFRS reporting). The loan maturity profile remains largely short-term: only 14% of loans had contractual maturities of more than one year at end- Q309. Foreign currency loans represented a moderate 14% of loans. Loan impairment was reportedly low: at end-Q309, NPLs (loans overdue by more than 90 days) represented less than 1% of gross loans, while about 12% of loans had extended maturities. The loan impairment reserve, at 9.7% of end-Q309 loans (IFRS reporting), provides adequate coverage of existing NPLs. Capitalization remains strong (Basel I total and tier 1 capital ratios were at 29.4% and 26.8%, respectively, at end-H109) offering a solid buffer to absorb potential credit losses up to 35% of the loan book, Fitch estimates. Upside rating potential is currently limited by the weak operating environment, limited franchise and tight liquidity. Better diversification of the funding base and a bolstering of the liquidity cushion would be positive for the bank's credit profile. Downward rating pressure could come from a further, sharp tightening of liquidity or a significant deterioration in asset quality. At end-Q309, IIB was the 25th largest Russian bank by total assets. IIB is controlled by Sergey Pugachev (with a 76% stake), who since 2001 has been a member of the upper house of the Russian parliament (the Federation Council). MARIINSKAYA MEAT: A. Protodyakonov Named Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Kemerovskaya appointed A. Protodyakonov as Insolvency Manager for LLC Mariinskaya Meat Cannery Company(TIN 4213004769, PSRN 1034213003428). The case is docketed under Case No. ?27�4680/2009�4. He can be reached at: Stroiteley Blvd. 28A 650060 Kemerovo Russia The Debtor can be reached at: LLC Mariinskaya Meat Cannery Company Sibiryakov-Gvardeytsev Str. 2 Mariinsk Russia NEW OIL: Creditors Must File Claims by November 23 -------------------------------------------------- Creditors of LLC New Oil(TIN 7729398872, PSRN 1027739623394) ( Mining and Wholesale Trade) have until November 23, 2009, to submit proofs of claims to: P. Osipov Insolvency Manager Apt. 95 Maryinskiy park 35 109559 Moscow Russia Tel: (495) 778-78-41 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?40�66959/09�70-270B. The Debtor can be reached at: LLC New Oil Office 117 MinskayaStr. 11 121108 Moscow Russia PARTNER SERVIS: Creditors Must File Claims by November 23 --------------------------------------------------------- Creditors of LLC Partner Servis Plus (TIN 5501107106) (Construction) have until November 23, 2009, to submit proofs of claims to: D. Sazhin Temporary Insolvency Manager Apt.7 Mira Prospect 104/1 Omsk-89 Russia The Arbitration Court of Omskaya will convene on January 26, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?46�16044/2009. The Debtor can be reached at: LLC Partner Servis Plus Krasnyy Put' Str. 143 644033 Omskaya Russia PENZA PRECISION: Yu.Petryushchenkov Named Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Penza appointed Yu.Petryushchenkov as Insolvency Manager for OJSC Penza Precision Instruments Plant (TIN 5837009382, PSRN 1025801440026). The case is docketed under Case No. ?49�12883/2005�2276/10. He can be reached at: Post User Box 153 630001 Novosibirsk Russia The Debtor can be reached at: OJSC Penza Precision Instruments Plant Okruzhnaya Str. 3 440031 Penza Russia POVOLZHSKIY OIL: Creditors Must File Claims by November 23 ---------------------------------------------------------- Creditors of CJSC Povolzhskiy Oil and Dissolvent Agents Plant (TIN 6323069258, RVC 632301001, PSRN 1036300996577) have until November 23, 2009, to submit proofs of claims to: N. Ovchinnikova Insolvency Manager Office 301 KomsomolskayaStr. 84a Tolyatti 443072 Samarskaya Russia The Arbitration Court of Samarskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?55�18857/2009. The Debtor can be reached at: CJSC Povolzhskiy Oil and Dissolvent Agents Plant Larina Str. 161 Tolyatti 445021 Samarskaya Russia SIBERIA WOOD: Creditors Must File Claims by November 23 ------------------------------------------------------- Creditors of LLC Siberia Wood (Forestry) have until November 23, 2009, to submit proofs of claims to: N. Fomin Temporary Insolvency Manager Post User Box 95 664009 Irkutsk Russia The Arbitration Court of Irkutskaya will convene at 10:00 a.m. on January 27, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?19�17886/09�3. The Debtor can be reached at: LLC Siberia Wood Shiryamova Str. 2 Irkutsk 664009 Irkutskaya Russia STROY-SERVIS: Creditors Must File Claims by November 23 ------------------------------------------------------- Creditors of LLC Stroy-Servis (TIN 8904044366, PSRN 1048900304551) (Construction) have until November 23, 2009, to submit proofs of claims to: V. Garan Insolvency Manager Office 9 Building 2 N. Basmannaya Str. 19 107078 Moscow Russia The Arbitration Court of Yamalo-Nenetskiy will convene at 10:00 a.m. on February 12, 2010, to hear bankruptcy proceedings. The case is docketed under Case No. A81�4680/2009. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubunina Str. 37a Salekhard Russia SVK-STROY: Creditors Must File Claims by November 23 ---------------------------------------------------- Creditors of LLC SVK-Stroy (TIN 1328906951, PSRN 1071328001590) (Construction) have until November 23, 2009, to submit proofs of claims to: Yu.Dobychin Insolvency Manager Post User Box 154 603000 Nizhny Novgorod Russia The Arbitration Court of Mordovia will convene at 09:15 a.m. on April 6, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?39�4499/2009. The Debtor can be reached at: LLC SVK-Stroy Prospect 70 Oktyabrya72 430000 Saransk Mordovia Russia TRANS-KHOLOD: Creditors Must File Claims by November 23 ------------------------------------------------------- Creditors of LLC Trans-Kholod (TIN 5753021376, PSRN 1025700829802) have until November 23, 2009, to submit proofs of claims to: I. Novikova Temporary Insolvency Manager Building 1 Moskovskoe shosse 137 302025 Orel Russia The Arbitration Court of Orlovskaya will convene at 9:15 a.m. on February 24, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?48�4367/2009. The Debtor can be reached at: LLC Trans-Kholod Lomonosova Str. 6 302040 Orel Russia UC RUSAL: Deripaska Dismisses Michael Cherney's Ownership Claim --------------------------------------------------------------- Katrina Nicholas and Yuriy Humber at Bloomberg News report that United Co. Rusal's owner Oleg Deripaska dismissed a claim for stake in the company by a former business associate. The claim by Michael Cherney is "nonsense" and "resembles a blackmail," Bloomberg quoted Mr. Deripaska as saying in an interview in Singapore. According to Bloomberg, Mr. Cherney says he's owed at least US$3 billion after Mr. Deripaska reneged on an agreement to exchange part of Siberian Aluminium for a future interest in what later became Rusal. 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. ZHILEVSKIY PLASTIC: Creditors Must File Claims by November 23 ------------------------------------------------------------- Creditors of OJSC Zhilevskiy Plastic Materials Plant (TIN 5045009531, PSRN 1025005916759) have until November 23, 2009, to submit proofs of claims to: D. Shcherban Temporary Insolvency Manager Post User Box 22 109431 Moscow Russia The Arbitration Court of Moskovskaya will convene at 10:10 a.m. on February 15, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?41�33178/09. The Debtor can be reached at: OJSC Zhilevskiy Plastic Materials Plant Sitne-Shchelkkanovo Stupinskiy 142822 Moskovskaya Russia * RYAZAN REGION: Fitch Affirms BB- Foreign & Loc. Currency Ratings ------------------------------------------------------------------ Fitch Ratings has affirmed Russian Ryazan Region's ratings at Long-term foreign and local currency 'BB-' with Stable Outlooks, Short-term foreign currency 'B' and National Long-term 'A+(rus)' with Stable Outlook. All ratings have been withdrawn and Fitch will no longer provide ratings or analytical coverage of this issuer. * VOLOGDA REGION: Fitch Changes Outlook to Negative --------------------------------------------------- Fitch Ratings has changed the Outlooks on the Russian Vologda Region's Long-term foreign and local currency ratings and National Long-term rating to Negative from Stable. The ratings have been affirmed at Long-term foreign and local currency 'BB', Short-term foreign currency 'B' and National Long-term 'AA-(rus)'. All ratings have been withdrawn. The change in Outlook reflects Fitch's expectation that the region's budgetary performance would deteriorate by-end 2009, due to lower corporate tax revenues resulting from the economic downturn. Fitch will no longer provide ratings or analytical coverage of this issuer. ========= S P A I N ========= BBVA EMPRESAS: Moody's Cuts Rating on Series C Notes to 'B3' ------------------------------------------------------------ Moody's Investors Service has taken these actions on the long-term credit ratings of these notes issued by BBVA Empresas 1, FTA: -- EUR1,000.0 million series A1 notes due 2047, confirmed at Aaa, previously placed under review for downgrade on 23 March 2009. -- EUR200.0 million series A2 notes due 2047, confirmed at Aaa, previously placed under review for downgrade on 23 March 2009. -- EUR121.6 million series A3 notes due 2047, confirmed at Aaa, previously placed under review for downgrade on 23 March 2009. -- EUR50.1 million series B notes due 2047, confirmed at A2, previously placed under review for downgrade on 23 March 2009. -- EUR78.3 million series C notes due 2039, downgraded to B3, previously Baa3 and placed under review for downgrade on 23 March 2009. Moody's initially assigned definitive ratings in November 2007. The rating action concludes the rating review resulting from Moody's revision of its methodology for granular SME portfolios in Europe, the Middle East and Africa. This revised methodology was introduced on 17 March 2009 and the affected transactions had been subsequently placed on review for possible downgrade on 23 March 2009. As a result of its revised methodology, Moody's has reviewed its assumptions for BBVA Empresas 1 collateral portfolio, taking into account anticipation of performance deterioration in the current down cycle, and the exposure of the transaction to the real estate sector (either through security in the form of a mortgage or debtors operating in the real estate sector). The deterioration of the Spanish economy has been reflected in the Moody's negative sector outlook on the Spanish SME securitization transactions ("EMEA ABS, CMBS & RMBS Asset Performance Outlooks," published by the rating agency in July 2009). To date, this transaction has been performing in line with the Spanish SME index. The 90 days cumulative delinquency rate as of September 2009 is 2.83% of original portfolio balance. As a result of the above, Moody's has revised its assumption of the default probability of the SME debtors to an equivalent rating in the single B-range for the debtors operating in the real estate sector, and in the low Ba-range for the non-real-estate debtors. At the same time, Moody's estimated the remaining weighted average life of the portfolio to equal 2.27 years. As a consequence, these revised assumptions have translated into an increase of the cumulative mean default assumption for the current portfolio equal to 7.71%. This implies a revised cumulative mean default calculation for the entire transaction since closing equal to 5.27% of original portfolio balance. Moody's original mean default assumption was 4.0% of original balance, with a coefficient of variation of 57%. Given the lack of granularity of the portfolio with an effective number of borrowers around 142 and the top 3 debtors representing 7.5% of the current pool balance, the rating agency used an Montecarlo distribution to model gross defaults, with a mean of 7.71% and a coefficient of variation of 47.5%. Stochastic recoveries were modelled, assuming a mean equal to 40%, while fixed values in the 55% to 45% range were tested at closing. The constant prepayment rate (CPR) assumption has been maintained at 5% (similar assumption as of closing). In summary, Moody's concluded that the negative effects of the revised default assumptions were not fully offset by the increased credit support available for the outstanding series C notes (4.37% of reserve fund + xs spread guaranteed by the swap), and the limited reduction in the remaining life of the portfolio and notes. BBVA Empresas 1 is a securitization fund, which purchased a pool of loans granted to Spanish SMEs and corporates by BBVA. At closing, in November 2004, the portfolio consisted of 3,229 loans. The loans were originated between 1993 and 2007, with a weighted average seasoning of 1.69 years and a weighted average remaining term of 6.26 years. Geographically, the pool was concentrated in Madrid (17%), Basque Country (11%) and Valencia (15%). At closing, the concentration in the real estate sector was around 26% of the original pool balance, according to Moody's industry classification. As of September 2009, the number of loans in the portfolio amounted to 2,228, the weighted average seasoning is 3.6 years and the remaining term is 6 years. The concentration levels per industry and region are similar to the levels at closing with a lower exposure in the building and real estate sector equal to 22% of current portfolio, which is in slightly below the sector- average concentration in the SME ABS portfolios. The pool factor was 51%. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. GAT FTGENCAT: Moody's Cuts Rating on Class D Notes to 'Caa3' ------------------------------------------------------------ Moody's Investors Service has downgraded the long-term credit ratings of these notes issued by GAT FTGENCAT 2006 FTA: -- EUR239.1 million class A2(G) notes, downgraded to Aa1 from Aaa; previously on 29 January 2009 placed under review for possible downgrade; -- EUR5.1 million class B notes, downgraded to Ba1 from Aa2; previously on 29 January 2009 placed under review for possible downgrade; -- EUR12.3 million class C notes, downgraded to B3 from A1; previously on 29 January 2009 placed under review for possible downgrade; -- EUR13.2 million class D notes, downgraded to Caa3 from Baa3; previously on 29 January 2009 placed under review for possible downgrade, and -- EUR9.5 million class E notes, downgraded to C from Ca; previously on 29 January 2009 placed under review for possible downgrade. The rating action was prompted by a higher-than-expected level of delinquencies. As of the end of June 2009, the cumulative 90+ delinquencies (i.e. the cumulative amount of loans that became 90 days delinquent, counting each loan only once and for its value the first time it became 90 days delinquent) were equal to 6.66% of the original portfolio balance, compared to 5.35% at the previous quarterly reporting date. High delinquencies have resulted in reserve fund draws, and following the September payment date, the reserve fund stood at EUR5.0 million, below its target level of EUR9.5 million. As part of its review, Moody's has considered the exposure of the transaction to the real estate sector (either through security in the form of a mortgage or debtors operating in the real estate sector). The deterioration of the Spanish economy has been reflected in the Moody's negative sector outlook for Spanish SMEs securitizations. As a result of the above, Moody's has revised its assumption of the default probability of the SME debtors to an equivalent rating in the single B-range for the debtors operating in the real estate sector and in the low Ba-range for non-real-estate debtors. At the same time, Moody's estimated the remaining weighted-average life of the portfolio as equal to four years. These revised assumptions have translated into an increase of the cumulative mean default assumption for the transaction to 15.9% of the current portfolio balance (corresponding to 13.3% of original portfolio balance). Moody's original mean default assumption was 2.5% of original balance, with a coefficient of variation of 66%. Because of the relatively low effective number of borrowers in the portfolio (400), Moody's used a Monte Carlo simulation to determine the probability function of the defaults, resulting in a coefficient of variation of 42.5%. The recovery rate assumption is now 55% while values in the 30%-50% range were tested at closing. The revised CPR assumption is now 5%, comparable to values observed throughout the last reporting periods, while CPR assumptions in the 5%-15% range were tested at closing. The increased credit enhancement available in the structure due to the amortization of the portfolio (as of September 2009, the pool factor was equal to 42%) are insufficient to offset the impact of the worse than expected performance and revised performance assumptions on the ratings of the class A2(G), B, C, D, and E notes. The class A2(G) notes benefit from a guarantee from the Generalitat de Catalunya (Aa3) for interest and principal payments. Moody's has determined that the expected loss associated with class A2(G) without the Generalitat de Catalunya guarantee, which was consistent with a Aaa rating at closing, would be consistent with an A1 rating. Moody's used a joint default approach in order to derive the Aa1 rating on the guaranteed class A2(G) notes. Following the downgrade of Caixa Catalunya (from A2/P1 to A3/P2) on 15 June 2009, which acts as paying agent in the transaction, it is contemplated in the transaction documents that the Gestora will need to find a P-1 rated replacement or guarantor. However, no remedial action has yet been taken. GAT FTGENCAT 2006 is a securitization fund which purchased a pool of loans granted by Caixa Catalunya to Spanish SMEs in the region of Catalonia. At closing, the portfolio consisted of 6,922 loans. The loans were originated between 1993 and 2006, with a weighted- average seasoning of 1.75 years and a weighted-average remaining term of 8.1 years. Geographically, the pool was exposed to the region of Catalonia only. At closing, the concentration in the real estate sector reached 30% of the original pool balance. As of September 2009, the number of loans in the portfolio was equal to 3,028 and the weighted-average remaining term was equal to 7.4 years. The concentration levels by industry and region are similar to their levels at closing. Caixa Catalunya was downgraded on June 15, 2009 from A2/P-1 to A3/ P-2. Given Caixa Catalunya has been acting as paying agent in the transaction since closing, it is contemplated in the transaction documents that the gestora will need to find a P-1 rated replacement or guarantor upon the downgrade below P-1 of the paying agent within 30 days. However, Moody's understands that no remedial action has yet been taken in that respect. Caixa Catalunya also acts as swap counterparty in the transaction and following the downgrade to P-2 it is posting collateral according to the documentation. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. SANTANDER FINANCIACION: Moody's Junks Ratings on 3 Notes Classes ---------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of: -- all the notes (A, B, C, D, E) issued by Santander Financiacion 1, FTA (SanFin1) -- all the notes (A, B, C, D, E) issued by Santander Financiacion 3, FTA (SanFin3) The rating action concludes Moody's review process on these two transactions that was initiated in July 2009 where Moody's placed several Spanish auto and consumer loan transactions on review for possible downgrade. Moody's says the downgrades were prompted by the deteriorating collateral performance and the worse than expected weakening of macro-economic conditions in Spain during the past year, which led Moody's to revise its assumptions for the transaction. The magnitude of the downgrade reflects the current credit enhancement levels, which, combined with the revised assumptions, lead to a higher expected loss on the rated notes. SanFin1 closed in December 2006. As of October 2009, the pool factor was 27%. The assets securitized in the portfolio were initially mainly originated by Banco Santander's branch network for the financing of new and used cars (~21%), property acquisitions (~29%), and the remaining loans being classified as "Others" (~41%) with no specific purpose. In January 2008, the 90 days plus delinquency trigger was hit which stopped the revolving period and started the amortization of the notes. The rapid deterioration in performance observed over the past 18 months is evidenced by several transaction parameters. In April 2009 the reserve fund was fully depleted. Since then until the last reporting date in October 2009 the outstanding amount of principal deficiency between asset and note balance grew to EUR32.6 million or 4.7% of the current outstanding note balance. The cumulative amount of failed loans in SanFin1 reached EUR112.85 million from EUR38 million a year ago corresponding to 4.55% of the total securitized pool balance. A loan is classified as failed or written-off once it has been more than 12 months delinquent or if the management company considers that there are no reasonable expectations of recovery. At the same time the amount of outstanding contentious loans fell from EUR37.2 million in July 2009 to EUR26.5 million in October 2009. Contentious loans are defined by the servicer as loans in which the originator will take legal actions. The loans are included in the 180 days plus delinquency bucket. Compared to other loans in the 180 days plus delinquency bucket Moody's assumes that the likelihood of a write- off for contentious loans is higher than for other loans. SanFin3 closed in May 2008. As of August 2009, the pool factor was 58%. The asset types securitized in the portfolio were initially originated by Banco Santander's branch network and third party brokers and mainly concentrated in areas for the financing of new and used cars (~23%), non-durable goods and services (~29.7%) and loans classified as "Others" (~37%). SanFin3 is a static transaction. The rapid deterioration in performance observed over the past year is evidenced by several indicators in the transaction. Over the last reporting quarter the reserve fund was reduced from 100% of its target level to 29.6% in August 2009. The cumulative amount of failed loans in SanFin3 has reached EUR23.6 million from EUR0.03 million a year ago, corresponding to 2.36% of original pool balance. A loan is declared as failed or written-off once it has been more than 12 months delinquent or if the management company considers that there are no reasonable expectations of recovery. At the same time the amount of outstanding contentious loans fell from EUR44.5 million in May 2009 to EUR35.4 million in August 2009. Contentious loans are defined by the servicer as loans in which the originator will take legal actions. The loans are included in the 180 days plus delinquency bucket. Compared to other loans in the 180 days plus delinquency bucket Moody's assumes that the likelihood of a write- off for contentious loans is higher than for other loans. During its analysis, Moody's considered various information such as macro-economic indicators, portfolio characteristics and performance data made available from the management company Santander de Titulizacion, S.G.F.T, S.A. Firstly, Moody's analyzed forecasts for the main macro-economic drivers behind a collateral deterioration, in particular, unemployment and GDP contraction. For instance, the unemployment rate in Spain, which could potentially surpass 20% in 2010, was assessed. Precisely, contrary to the unemployment forecast for 2009 of 13.3% at the time of the last rating action in November 2008, unemployment is now expected to reach 18.4% in 2009 and 20.7% in 2010. As of Q3 2009, the unemployment rate in Spain reached 17.93%. In addition Moody's tried to compare and benchmark the current performance of the transactions to its peers in Moody's rated Spanish auto and consumer loan universe. The main parameters Moody's took into consideration have been the geographic concentration of the borrowers, the vintages of the year the loans were originated, the loan purpose and the origination channels. Secondly, the current amounts of cumulative failed loans and contentious loans were taken into account and a roll rate analysis was conducted for the non-written-off pool portion. Moody's adjusted the previously revised cumulative mean default rate of SanFin1 of 5.3% to 8% of original balance plus replenishments and the previously confirmed volatility of 35% was kept constant. This compares to a cumulative mean default rate of 3.25% and a volatility of 35% assumed at closing. In SanFin3 Moody's adjusted the original cumulative default rate of 6% to 18% on original balance plus replenishments and the volatility of 35% to 25%. Moody's defines as volatility or coefficient of variation the ratio between standard deviation and cumulative default rate. Moody's explains the difference in the revised cumulative default rates and volatility between SanFin1 and SanFin3 by different composition of the pools in terms of the characteristics of underlying loans, seasoning of the pools and origination channels. In Moody's view, the asset types (new and used cars, property related loans and "Others") and origination channels (branch network versus third party broker origination) in combination with the seasoning will have an impact on the future portfolio performance. The base case recovery rate assumed for SanFin1 and SanFin3 is 30%. Moody's believes that there is uncertainty around the recovery rate assumption due to various factors, such as the time lag and consequently the mismatch between actually observed and historical recovery information, the servicing strategy of the servicer, the long legal final maturities and the future evolution of the economic situation in Spain. Additionally to its base case scenario Moody's ran different recovery rate scenarios in its cash flow model, ranging from 20% to 30% for SanFin1 and from 25% to 35% for SanFin3, to test sensitivities and rating stability on the outstanding classes of notes. Unexpected shifts in the factors mentioned above will lead Moody's to revise again its view on this input parameter, with potential up- or downside rating pressure on the outstanding classes of notes. As a consequence Moody's will continue to carefully monitor these factors. Moody's believes that the different concentration in asset types between the pools, in particular the original focus of SanFin1's portfolio on loans used for property acquisition, could lead to a negative deviation in recovery rates. Moody's tested also various prepayment rate sensitivities in its cash flow model ranging from 10% to 20%. Given the actual levels observed for the CPR, Moody's considers a prepayment rate of 15%. The ratings address the expected loss posed to investors by the legal final maturity date (July 2035 for SanFin1 and November 2038 for SanFin3). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the final maturity date. Moody's sector outlook for Spanish consumer ABS is negative. List of detailed rating action: Issuer: Santander Financiacion 1, FTA -- Class A notes, Downgrade to A3 from Aa1, previously on 2 July 2009 placed on review for possible downgrade -- Class B notes, Downgrade to Baa3 from Aa3, previously on 2 July 2009 placed on review for possible downgrade -- Class C notes, Downgrade to B3 from Baa1, previously on 2 July 2009 placed on review for possible downgrade -- Class D notes, Downgrade to Caa3 from Ba3, previously on 2 July 2009 placed on review for possible downgrade -- Class E notes, Downgrade to Ca from Caa3, previously on 2 July 2009 placed on review for possible downgrade Issuer: Santander Financiacion 3, FTA -- Class A notes, Downgrade to Aa2 from Aaa, previously on 2 July 2009 placed on review for possible downgrade -- Class B notes, Downgrade to Baa1 from Aa2, previously on 2 July 2009 placed on review for possible downgrade -- Class C notes, Downgrade to Ba2 from A2, previously on 2 July 2009 placed on review for possible downgrade -- Class D notes, Downgrade to Caa2 from Baa2, previously on 2 July 2009 placed on review for possible downgrade -- Class E notes, Downgrade to Caa3 from Ba2, previously on 2 July 2009 placed on review for possible downgrade ===================== S W I T Z E R L A N D ===================== ADVENTURES ON WHEELS: Claims Filing Deadline is November 20 ----------------------------------------------------------- Creditors of Adventures on Wheels GmbH are requested to file their proofs of claim by November 20, 2009, to: Adventures on Wheels GmbH Rohrgasse 2 4226 Breitenbach Switzerland The company is currently undergoing liquidation in Breitenbach. The decision about liquidation was accepted at a shareholders' meeting held on September 22, 2009. BODYSOL GMBH: Claims Filing Deadline is November 20 --------------------------------------------------- Creditors of Bodysol GmbH are requested to file their proofs of claim by November 20, 2009, to: KGS AG Grundstrasse 9 8126 Zumikon Switzerland The company is currently undergoing liquidation in Turgi. The decision about liquidation was accepted at a shareholders' meeting held on September 17, 2009. CEO GMBH: Claims Filing Deadline is November 18 ----------------------------------------------- Creditors of CEO GmbH are requested to file their proofs of claim by November 18, 2009, to: Andreas Byland Bundesgasse 26 3001 Bern Switzerland The company is currently undergoing liquidation in Belp. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 29, 2009. CORE AUDIT: Claims Filing Deadline is November 19 ------------------------------------------------- Creditors of Core Audit AG are requested to file their proofs of claim by November 19, 2009, to: Deloitte AG, Bogdan Oedekerk General Guisan-Quai 38 8022 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting held on July 21, 2009. ELEKTRO-BADERTSCHER: Claims Filing Deadline is November 19 ---------------------------------------------------------- Creditors of Elektro-Badertscher AG are requested to file their proofs of claim by November 19, 2009, to: Fritz Lerch Liquidator Niederwiesenstrasse 4 8214 Gaechlingen Switzerland The company is currently undergoing liquidation in Gaechlingen. The decision about liquidation was accepted at an extraordinary general meeting held on August 7, 2009. LA ROCCA: Claims Filing Deadline is November 19 ----------------------------------------------- Creditors of La Rocca & Urban Malergeschaeft GmbH are requested to file their proofs of claim by November 19, 2009, to: Walter La Rocca Liquidator Feldstrasse 1 8953 Dietikon Switzerland The company is currently undergoing liquidation in Dietikon. The decision about liquidation was accepted at a shareholders' meeting held on February 17, 2009. LEISURE MARKETING: Claims Filing Deadline is November 19 -------------------------------------------------------- Creditors of Leisure Marketing Europe GmbH are requested to file their proofs of claim by November 19, 2009, to: Prefera Treuhand AG Grossfeldstrasse 40 7320 Sargans Switzerland The company is currently undergoing liquidation in Mels. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on September 30, 2009. PROVAST GMBH: Claims Filing Deadline is November 18 --------------------------------------------------- Creditors of Provast GmbH are requested to file their proofs of claim by November 18, 2009, to: Attendus Trust Company AG Bahnhofstrasse 12 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on September 25, 2009. SAHLI + JORDI: Claims Filing Deadline is November 19 ---------------------------------------------------- Creditors of Sahli + Jordi Plattenbelaege GmbH are requested to file their proofs of claim by November 19, 2009, to: Sascha Jordi Bruggerstrasse 30 5507 Mellingen Switzerland The company is currently undergoing liquidation in Windisch. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 30, 2009. TB BADER: Claims Filing Deadline is November 18 ----------------------------------------------- Creditors of TB Bader GmbH are requested to file their proofs of claim by November 18, 2009, to: Bruno Bader Liquidator Aegertenweg 5 4702 Oensingen Switzerland The company is currently undergoing liquidation in Olten. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on September 28, 2009. ============= U K R A I N E ============= ABSOLUT INSURANCE: Creditors Must File Claims by November 22 ------------------------------------------------------------ Creditors of DLC Insurance Company Absolut (code EDRPOU 36086229) have until November 22, 2009, to submit proofs of claim to: Insolvency Manager Post Office Box 166 03087 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on October 7, 2009. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: DLC Insurance Company Absolut P. Mirny Str. 16/13 01011 Kiev Ukraine AGRICULTURAL TECHNICAL: Creditors Must File Claims by November 22 ----------------------------------------------------------------- Creditors of LLC Agricultural Technical Building Ltd. (code EDRPOU 33874042) have until November 22, 2009, to submit proofs of claim to: D. Selevko Insolvency Manager Post Office Box 1230 Krivoy Rog 50027 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on January 27, 2009. The case is docketed under Case No. B29/29-09. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev Str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Agricultural Technical Building Ltd. Mir Ave. 48/3 Krivoy Rog Dnepropetrovsk Ukraine AGROSERVICE LLC: Creditors Must File Claims by November 22 ---------------------------------------------------- Creditors of LLC Agroservice (code EDRPOU 3739705) have until November 22, 2009, to submit proofs of claim to: O. Yarmola Insolvency Manager Office 12 Lesnaya Str. 11-A Zarichany 12440 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company on September 10, 2009. The case is docketed under Case No. 3/190-b. The Court is located at: The Economic Court of Zhytomir Putiatinsky Square 3/65 Zhytomir Ukraine The Debtor can be reached at: LLC Agroservice Shevchenko Str. 1 Korostishev Zhytomir Ukraine BERDICHEV MILK: Creditors Must File Claims by November 22 --------------------------------------------------------- Creditors of OJSC Berdichev Milk Plant (code EDRPOU 00445357) have until November 22, 2009, to submit proofs of claim to: O. Krutous Insolvency Manager 5th Tranzitny Lane 24 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company on September 24, 2009. The case is docketed under Case No. 7/155-b. The Court is located at: The Economic Court of Zhytomir Putiatinsky Square 3/65 Zhytomir Ukraine The Debtor can be reached at: OJSC Berdichev Milk Plant Volodarsky Str. 65 Berdichev Zhytomir Ukraine BILAZ-UKRAINE: Court Starts Bankruptcy Supervision Procedure ------------------------------------------------------------ The Economic Court of Dnepropetrovsk commenced bankruptcy supervision procedure on LLC Bilaz-Ukraine (code EDRPOU 32196701). The Insolvency Manager is: V. Koloshyn Rabochaya Str. 152/47 49000 Dnepropetrovsk Ukraine The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev Str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Bilaz-Ukraine Nauchnaya Str. 1 Doslisnoye 52071 Dnepropetrovsk Ukraine CONTRACTINDUSTRY LLC: Creditors Must File Claims by November 22 --------------------------------------------------------------- Creditors of LLC Contractindustry (code EDRPOU 34489216) have until November 22, 2009, to submit proofs of claim to: V. Kozachenko Insolvency Manager Post Office Box 2725 49044 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company. The case is docketed under Case No. B24/197-09. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev Str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Contractindustry Ferganskaya Str. 29 Krivoy Rog Dnepropetrovsk Ukraine ELIT-TRADE LLC: Creditors Must File Claims by November 22 --------------------------------------------------------- Creditors of LLC Elit-Trade (code EDRPOU 33320904) have until November 22, 2009 to submit proofs of claim to: O. Yarmola Insolvency Manager Office 12 Lesnaya Str. 11-A Zarichany 12440 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company on September 10, 2009. The case is docketed under Case No. 7/161-b. The Court is located at: The Economic Court of Zhytomir Putiatinsky Square 3/65 Zhytomir Ukraine The Debtor can be reached at: LLC Elit-Trade Zarichany Zhytomir Ukraine FRUIT-PACK LLC: Creditors Must File Claims by November 22 --------------------------------------------------------- Creditors of LLC Fruit-Pack (code EDRPOU 34265090) have until November 22, 2009, to submit proofs of claim to: O. Tischenko Insolvency Manager Office 33 Mironositskaya Str. 65 61002 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company on October 13, 2009. The case is docketed under Case No. B-19/145-08. The Court is located at: The Economic Court of Kharkov Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Fruit-Pack Rechnoy Lane 1 Babai 62403 Kharkov Ukraine NAFTOGAZ OF UKRAINE: EBRD Delays Ruling on US$300 Mln Loan ---------------------------------------------------------- Daryna Krasnolutska at Bloomberg News reports that the European Bank for Reconstruction and Development delayed a ruling on a loan package to help NJSC Naftogaz of Ukraine pay for imports of Russian natural gas. "Ukraine was supposed to meet some requirements, which was not done," Bloomberg quoted Anton Usov, a spokesman for the EBRD's Kiev office, as saying. "Thus we have not submitted the project to the EBRD's board of directors." Bloomberg recalls the bank said in September it was studying a US$300 million loan for Naftogaz to finance gas supplies over the coming winter and would announce a decision on Nov. 17. Mr. Usov, as cited by Bloomberg, said "The delay in a decision on the US$300 million loan doesn't mean the EBRD is suspending cooperation with Naftogaz." 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 by the Troubled Company Reporter-Europe on Nov. 18, 2009, Fitch Ratings affirmed NJSC Naftogaz of Ukraines' long-term foreign currency and local currency issuer default ratings at 'CCC'. The outlook is negative. NIRA TSAY: Creditors Must File Claims by November 22 ---------------------------------------------------- Creditors of LLC Nira Tsay Shase (code EDRPOU 35614950) have until November 22, 2009, to submit proofs of claim to: S. Nesterenko Insolvency Manager Office 193 Gagarin str. 27 Brovary 07400 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on October 14, 2009. The case is docketed under Case No. B3/108-08/11. The Court is located at: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Nira Tsay Shase Lipneva Str. 1 Chubinskoye Borispol Kiev Ukraine UKRAINIAN ENERGETIC: Creditors Must File Claims by November 22 -------------------------------------------------------------- Creditors of LLC Ukrainian Energetic Alliance (code EDRPOU 32209034) have until November 22, 2009, to submit proofs of claim to: Insolvency Manager Post Office Box 166 03087 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on October 7, 2009. 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 Ukrainian Energetic Alliance Office 14 Liuteranskaya Str. 15 01024 Kiev Ukraine UKRPROMTRADE LTD LLC: Creditors Must File Claims by November 22 --------------------------------------------------------------- Creditors of LLC Ukrpromtrade Ltd. (code EDRPOU 33156125) have until November 22, 2009, to submit proofs of claim to: Insolvency Manager Post Office Box 166 03087 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on October 7, 2009. 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 Ukrpromtrade Ltd. V. Vasilevska Str. 18 04116 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ACORN PET: Business Sold; 153 Jobs Secured ------------------------------------------ Acorn Pet Centres has been sold for an undisclosed sum in a deal that will secure 153 jobs in 24 stores throughout Scotland. The pet food retail chain went into administration September 2. The deal will see Acorn Pet Centres continue to be run by Douglas Mutter, the former Managing Director. Administrators Tenon Recovery said there had been a great deal of interest in the company, with 40 inquiries and a number of strong bids. Joint administrator Tom MacLennan, Head of Tenon Recovery in Scotland, commented: "We are delighted to have secured the sale of Acorn Pet Centres and that 153 jobs will be saved as a result of the deal. The company was in administration for just 10 weeks, and achieving a sale in a difficult market is an excellent result. My team and I would like to wish the new owners every success with their plans for developing the business, and to thank the staff, customers and suppliers who continued to support the company throughout." Mr. Mutter added: "In 25 years we built Acorn Pet Centres into one of the UK's leading pet retail chains. We are therefore delighted to have acquired the business, and have exciting plans to develop the company, including hopefully recruiting additional staff in due course as we grow the business." Acorn Pet Centres was represented by CCW business lawyers. ADMIRAL TAVERNS: Completes Debt-for-Equity Swap Deal with Lloyds ---------------------------------------------------------------- Pan Kwan Yuk at The Financial Times reports that Admiral Taverns has completed a debt-for-equity swap with Lloyds Banking Group. According to the FT, the deal, which comes in the form of a pre-pack administration, will see Lloyds write off about GBP600 million of Admiral's GBP855 million debt in return for a large stake in the business. Under the terms of the swap, Lloyds will be Admiral's largest shareholder with almost 50%, the FT discloses. The FT relates David Chubb of PwC, the public services firm, who oversaw the process, said the restructuring, which will also result in the departure of the Landesberg and Rosenberg families, would not cause job losses or suppliers to go unpaid but would leave the group with a more sustainable level of debt. The FT recalls Admiral breached banking covenants this year after it fell behind on debt repayments. Admiral Taverns -- http://www.admiraltaverns.co.uk/-- is the UK's largest independent tenanted and leased pub company. BRITISH AIRWAYS: Balloting on Industrial Action Begins ------------------------------------------------------ David Robertson at The Times reports that the Unite union began balloting 14,000 British Airways cabin crew on industrial action on Monday. According to the report, the result of the ballot will be known on December 14. If members vote in favor, the first strikes could hit BA on December 21, the report says. The report relates in a letter to Tony Woodley and Derek Simpson, the joint general secretaries of Unite, BA said that it would not tolerate union members promoting strike action while at work. BA, which lost GBP292 million in the six months to September 30, imposed working practice changes on crew in a further effort to save money on Monday, the report discloses. The changes will reduce the number of staff rostered on to long-haul flights by at least 1 per flight, the report notes. As reported by the Troubled Company on Nov. 10, 2009, the Financial Times said Unite failed to win a court injunction to block planned changes to work practices. 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 Nov. 12, 2009, Moody's placed the Ba3 Corporate Family and Probability of Default Ratings of British Airways plc and the senior unsecured and subordinate ratings of B1 and B2 under review for possible downgrade. CABLE & WIRELESS: Demerger Plans Won't Affect Moody's 'B1' Rating ----------------------------------------------------------------- Following confirmation of the Cable & Wireless plc demerger plan earlier this month and the release of additional details regarding the financing of the transaction, Moody's Investors Service comments that Company's current bond ratings are not immediately affected. The ultimate impact on the Company's existing bonds currently rated B1 will depend upon the final long-term capital structure and the Corporate Family Rating of CWI, the wholly-owned subsidiary that is ultimately expected to remain the rated obligor of the bonds. Compared with the business of the other main operating subsidiary, Worldwide; CWI's holdings have stronger market positions with lower, albeit increasing, competitive pressures and more diversified business models. Therefore, Moody's believes the demerger could improve the business profile of the rated entity. However, Moody's notes that CWI expects to refinance its outstanding US$415 million bank facilities with US$1 billion of new bonds and bank facilities, leaving room for an increase in CWI's consolidated leverage. In order to assess the impact on the existing bond ratings, Moody's will seek to get clarity on CWI's future capital structure, including the terms and conditions of any new instruments; its future financial and strategic policies; its proportionate allocation of the pension deficit as well as the evolution of its operating performance and will comment further as details emerge. Moody's believes that the issuance of GBP200 million convertible bonds at Cable & Wireless plc announced is unlikely to have an impact on the creditworthiness of the existing bonds, even though the convertible bonds are to be issued by Cable & Wireless plc prior to the demerger. This is because the Company has publicly indicated that the purpose of this issuance is to fund and refinance the Worldwide business following the demerger, whereas the existing bonds are expected to be included in CWI's debt structure. Cable & Wireless plc is one of the leading international communications companies. The company's principal operations are in Europe, Asia & US, the Caribbean, Panama, Macau, Monaco & the Islands. C&W operates through two stand-alone business units: Worldwide (previously EAUS) and CWI (previously Cable & Wireless International). In the first half of the fiscal year ended 31 March 2010, the company generated revenue of GBP1.9 billion and reported EBITDA before exceptional items of GBP463 million. CWI is an integrated telecoms provider in most of its markets, providing services to homes, small and medium sized enterprises, corporate customers and governments. The company operates in 38 countries, grouped in 4 entities: The Caribbean, Panama, Macau, Monaco and The Islands. The Company is the market leader in 19 of the 26 markets in which it offers mobile services and 27 of the 34 markets in which it offers broadband. As of 30 September 2009 YTD, CWI accounted for approximately 39% of total revenue and 59% of the group's EBITDA. CABLE & WIRELESS: S&P Puts 'BB-' Rating on CreditWatch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services said that it has placed its 'BB-' long-term corporate credit rating on Cable & Wireless PLC on CreditWatch with positive implications. At the same time, S&P placed its existing 'BB-' senior unsecured issue ratings on CreditWatch with negative implications. The recovery rating on C&W's existing senior unsecured bonds is '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. The 'B' short-term corporate credit rating has been affirmed. C&W announced its intention to demerge its two main business lines, essentially resulting in the spin-off of its "Worldwide" activities (primarily its telecom services business to European and U.S. corporates) from its international fixed-line and mobile operations, mainly in the Caribbean, Panama, Macau, Monaco, and the Channel Islands, known as CWI. CWI will be the surviving rated entity and will be the obligor of existing senior unsecured bonds. "The CreditWatch placement with positive implications reflects S&P's views that CWI is likely to benefit from a stronger business risk profile than Cable & Wireless PLC, in turn possibly leading to a corporate credit rating of 'BB'," said Standard & Poor's credit analyst Guy Deslondes. "This preliminary indication is based on the indications by management about the capital structure it intends to implement at CWI upon the demerger," said Mr. Deslondes. Based on the announcement, S&P would expect CWI's gross pension and lease- adjusted debt to be between US$2.3 billion and US$2.5 billion, yielding debt-to-EBITDA ratios between 3x and 3.5x, on a proportionate basis, during the 18 months following the demerger. The placement of the issue ratings on CreditWatch with negative implications reflects expectations of greater subordination in light of the company's refinancing plans, as well as a reduced asset base after the spin-off. S&P note that the newly issued �230 million convertible bonds will be exclusively financial obligations of the newly created Worldwide entity from demerger and will therefore not be rated by Standard & Poor's. S&P would expect the credit quality of Worldwide to be lower than that of Cable & Wireless PLC's existing ratings. S&P will likely resolve the CreditWatch status as the demerger becomes effective, which is expected by end-March 2010. In the meantime, S&P will continue to assess the credit implications of the demerger and refinancing plans for the business and financial profiles of CWI and will seek to provide updates about S&P's expectations as to the likely outcome for CWI's corporate and issue ratings. In particular, additional information will be needed with respect to the new company's financial policy, specifically dividend policy, and progress on the refinancing plans. EUROMASTR PLC: Fitch Junks Ratings on Two Tranches -------------------------------------------------- Fitch Ratings has downgraded five tranches of EuroMASTR plc Series 2007-1V and affirmed one, following a performance review. This is a UK non-conforming RMBS transaction of loans originated by Victoria Mortgage Funding. The rating actions are: EuroMASTR Series 2007-1V plc: -- Class A1 (ISIN XS0305751645): affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class A2 (ISIN XS0305763061): downgraded to 'AA' from 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ISIN XS0305764036): downgraded to 'A' from 'AA'; Outlook Stable; assigned 'LS-2' -- Class C (ISIN XS0305766080): downgraded to 'BBB' from 'A'; Outlook revised to Negative from Stable; assigned 'LS-3' -- Class D (ISIN XS0305766320): downgraded to 'CCC' from 'BBB'; assigned Recovery Rating 'RR4' -- Class E (ISIN XS0305766676): downgraded to 'CC' from 'BB'; assigned Recovery Rating 'RR6' -- MERCs affirmed at 'AAA'; Outlook Stable The performance of the transaction has deteriorated sharply in the last four quarters. Losses have been higher than expected at closing, driving the downgrades of all tranches except the Class A1 which is expected to pay down in the next four quarters. Losses over the last four quarters exceeded the available excess spread, leading to drawings on the reserve fund from December 2008 onwards and, consequently, its depletion in September 2009. Additionally, on the last quarter, GBP356,894.30 of the principal deficiency ledger of the Class E notes was left outstanding. The fact that 35.58% of the borrowers at closing have been the subject of at least one county court judgement, together with the slowdown of the UK economy and declining house prices, caused an increase in the loans in arrears of more than three months as a percentage of the current portfolio balance to 22.58% in September 2009 from 12.97% a year ago. The transaction closed at the peak of the market, in June 2007, with 50.39% of the current pool originated in 2007. Given Fitch's expectations of a 30% from peak-to-bottom decline in UK house prices, and that 62.03% of the current pool has a loan-to-value ratio higher than 80%, the weighted average loss severity -- which reached 34.62% in the last quarter -- is expected to remain high. Since December 2008, quarterly losses ranged between 0.77% and 1.19% of the current balance and cumulative losses reached 3.86% in September 2009. Fitch expects that elevated losses in 2010 will continue increasing the PDL of Class E notes. Fitch has employed its credit cover multiple methodology to assess the level of credit support available to each class of notes. GKN HOLDINGS: Moody's Affirms Corporate Family Rating at 'Ba1' -------------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 Corporate Family Rating of GKN Holdings plc and changed the outlook to stable from negative. Rainer Neidnig, lead analyst for GKN, said, "The outlook change to stable reflects GKN's successful efforts to downsize its cost base to a significantly lower level of demand and the company's ability to maintain Free Cash Flow around break-even levels despite a very challenging economic environment. Although credit metrics still remain very weak for the Ba1 rating category Moody's expect a notable recovery over the next 12-18 months when restructuring costs phase out and the full benefits of cost-saving initiatives come through. At the same time Moody's caution that significant uncertainty around GKN's end markets remains and that rating pressure could arise again if global automotive or aerospace markets weaken to an extent that does not allow for material recovery in financial ratios." Moody's decision also takes into account the company's sizeable rights issue (GBP403 million net proceeds) in July which strengthened the company's balance sheet and resolved the upcoming refinancing of GBP350 million revolving credit facilities in 2010. GKN recently released its 3rd quarter Interim Management Statement reporting an operating profit before restructuring costs of GBP51 million for the 3rd quarter after a GBP36 million profit in Q2 and a loss of GBP-13 million in Q1. In Moody's view the quarterly improvements reflect stabilization in GKN's core automotive markets, but also evidence the company's success in adjusting its cost base. In particular, Moody's note positively that the automotive activities returned to a positive result before restructuring costs in Q3. In addition, Moody's note that 2009 financial results will also benefit from GKN's diversification into the aerospace segment which so far held up relatively well in the downturn. At the same time Moody's caution that the aerospace segment is expected to see declining demand over coming quarters and that the OffHighway segment still struggles with low volumes which resulted in a small operating loss in Q3. For 2010, Moody's anticipate a marked recovery in earnings as restructuring costs are expected to reduce followed by further gradual progress in 2011. In Moody's view the major risk factor for GKN's credit profile remains the still weak overall economic environment and the resulting uncertainty around the development of GKN's end markets. Against this backdrop Moody's caution that pressure on the rating would arise again, should current restructuring measures prove insufficient to allow for a gradual recovery in profit margins towards historic levels and a reduction of leverage towards levels of 4x Debt/EBITDA (as adjusted by Moody's) or lower by the end of 2010. Moreover continuing volatility in GKN's large pension deficit could burden adjusted leverage ratios. Lastly, Moody's points out that the current rating and outlook are based on the assumption that GKN will continue the balanced financial policy demonstrated in recent quarters. The ratings on GKN's GBP325 million and GBP350 million bonds are in line with Moody's Loss Given Default Methodology whereby GKN's pension obligations and trade creditors have been modeled pari passu with GKN's financial debt which consists primarily of the above mentioned unsecured bonds and unsecured revolving credit facilities of GKN Holdings plc in an amount of app. GBP625 million. Upgrades: Issuer: GKN Holdings plc -- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD4, 52% from LGD4, 63% Assignments: Issuer: GKN Holdings plc -- Senior Unsecured Regular Bond/Debenture, Assigned LGD4, 52% Outlook Actions: Issuer: GKN Holdings plc -- Outlook, Changed To Stable From Negative Moody's last rating action on GKN was to change to outlook on the Ba1 Corporate Family Rating to negative from stable on May 19, 2009. Headquartered in Redditch, UK, GKN Holdings plc, is an international engineering group with approximately 40,000 employees and operations in more than 30 countries. The company operates in three main markets -- Automotive, OffHighway and Aerospace -- in which GKN generally is among the leading players in the respective segments. GKN recorded revenues of GBP4.4 billion during the fiscal year 2008 of which approximately 60% related to the automotive industry. Given current industry dynamics and the acquisition of Filton in January this share is expected to further reduce in 2009. GYMOPHOBICS: Huddersfield Branch Placed in Administration --------------------------------------------------------- The Huddersfield branch of Gymophobics, a ladies-only gym and fitness center, went into administration on October 26, 2009. The gyms owners experienced severe difficulties in maintaining membership sales as a result of the recession and Chris Stirland and Dave Broadbent, Client Partners at Vantis Business Recovery Services, a division of Vantis, the UK accounting, tax and business advisory group, were appointed joint administrators. Other Gymophobics branches have not been affected and a letter has been sent to members of the Huddersfield gym advising them that they are entitled to transfer part of their membership to another branch or to a similar, neighbouring gym, Energie Fitness. Commenting on the case, Dave Broadbent said: "All seven employees had unfortunately been made redundant prior to our appointment on October 26, 2009. The business has ceased to trade and we are now in the process of securing and realising all assets for the benefit of creditors and stakeholders." HELLAS TELECOM: Files for Administration in English Court --------------------------------------------------------- John Glover at Bloomberg News reports that Hellas Telecommunications II, the owner of Wind Hellas Telecommunications SA, said it filed for administration in the English High Court. Bloomberg recalls Hellas II, which is seeking to restructure as much as EUR3 billion (US$4.45 billion) of debt as Wind Hellas struggles with falling sales, moved its headquarters in August to London from Luxembourg, allowing it to take advantage of a so- called pre-packaged administration, using a scheme of arrangement. According to Bloomberg, Hellas II said in an e-mailed statement Tuesday that "at least a majority in aggregate principal amount" consented to the changes it asked for in its loan documentation. It also got the approval of bank lenders to the changes, Bloomberg discloses. LLOYDS BANKING: To Write Off About GBP600 Mln of Admiral's Debt --------------------------------------------------------------- Pan Kwan Yuk at The Financial Times reports that Admiral Taverns has completed a debt-for-equity swap with Lloyds Banking Group. According to the FT, the deal, which comes in the form of a pre-pack administration, will see Lloyds write off about GBP600 million of Admiral's GBP855 million debt in return for a large stake in the business. Under the terms of the swap, Lloyds will be Admiral's largest shareholder with almost 50%, the FT discloses. The FT relates David Chubb of PwC, the public services firm that oversaw the process, said the restructuring, which will also result in the departure of the Landesberg and Rosenberg families, would not cause job losses or suppliers to go unpaid but would leave the group with a more sustainable level of debt. The FT recalls Admiral breached banking covenants this year after it fell behind on debt repayments. As reported in the Troubled Company Reporter-Europe, Lloyds sought a GBP17-billion bailout from taxpayers after it agreed to buy HBOS in September in a government- brokered deal to prevent the collapse of Britain's biggest mortgage lender. 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. TATA MOTORS: JLR Secures GBP170 Mln Working Capital Facility ------------------------------------------------------------ Martin Arnold at The Financial Times reports that Jaguar Land Rover, the lossmaking car company owned by India's Tata Motors, has secured a new GBP170 million working capital facility from GE Capital. According to the FT, the asset-backed distribution finance facility from GE Capital -- the financing arm of General Electric in the US -- will be drawn down by JLR as soon as vehicles roll off its three UK production lines. The FT says the five-year loan will boost working capital within the company by shortening the 30- to 40-day gap it typically has to wait between producing hundreds of thousands of cars a year and delivering them to dealerships in 90 countries. Turnaround Vipin V. Nair and Sarah Rabil at Bloomberg News report that Tata Motors is hopeful of turning around JLR as it cuts costs to battle a slump in sales during the global recession. Bloomberg relates Tata Motors hired KPMG International and Roland Berger Strategy Consultants to reduce costs at the luxury unit, which it bought for US$2.5 billion last year from Ford Motor Co. JLR had a loss before interest, tax and exceptional items of 8.73 billion rupees ($189 million) in the quarter ended June, Bloomberg discloses, citing the latest earnings report from Tata Motors. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on Aug. 6, 2009, Standard & Poor's Ratings Services said that it had lowered its long term corporate credit rating on India-based Tata Motors Ltd. to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'. Both ratings were removed from CreditWatch, where they were placed with negative implications on December 18, 2009, and refreshed in March 2009. TURBO BETA: Likely Covenant Breach Cues Moody's to Junk Ratings --------------------------------------------------------------- Moody's Investors Service has downgraded to Caa1 from B3 the Probability of Default Rating of Turbo Beta Ltd (consolidated with its subsidiaries, "Abbot"), the ultimate holding company for drilling contractor Abbot Group Ltd. At the same time, Moody's affirmed the B3 Corporate Family Rating of Turbo Beta Ltd and the B2 rating on the US$1.625 billion Senior Facilities of Turbo Alpha Ltd, the immediate holding company of Abbot Group Ltd. The LGD assessment on the Senior Facilities was revised to LGD2 (24%) from LGD3 (34%). The outlook for all ratings is negative. The downgrade of the PDR reflects Moody's concerns that Abbot is increasingly likely to breach its financial covenants by early 2010 as a result of its subdued cash flow generation driven by the current downturn in demand for drilling and oilfield services. At the same time, the affirmation of the CFR at B3, one notch higher than the PDR of Caa1, reflects Moody's expectation that the family recovery rate in case of default might be above the standard 50% average implied by Moody's Loss Given Default Model in recognition of the general resiliency of Abbot's drilling business stemming from medium-term contracts and exposure to less volatile international markets. As a result of the revision of the recovery rate, the LGD assessment on the Senior Facilities was revised to LGD2 (24%) from LGD3 (34%). In addition, capex and opex reduction measures taken by the group have been supporting roughly neutral free cash-flow generation since the beginning of the year, thus allowing Abbot to maintain leverage (measured as net debt to EBITDA, adjusted for operating leases and pension liabilities) around 6x. Ratings also factor in the group's adequate liquidity position and relative visibility over future cash flows. Whilst the combination of these factors underpins Moody's assumption of ongoing senior creditor support to amend the existing covenant structure, the negative outlook reflects the possibility that the capital structure of the business may have to be restructured should its operating performance challenges extend over a longer period of time. Moody's notes that a debt buyback below par may be assessed as a distressed exchange (and hence a default) under the agency's rating methodology. However, the rating outlook could be stabilized if there is evidence of shareholder support that would improve significantly Abbot's financial position, hence allowing it to maintain adequate and sustainable headroom under its existing covenants. Moody's last rating action on Abbot was on 8 April 2009, when the rating agency downgraded the corporate family rating of Turbo Beta Ltd to B3 and the rating on the Senior Facilities of Turbo Alpha Ltd to B2, and changed the outlook to negative. Headquartered in Aberdeen, UK, Abbot Group Ltd is a provider of onshore and offshore drilling services to both IOCs and NOCs in the Eastern Hemisphere. Its ultimate owner is First Reserve Corporation, a US private equity firm specialized in the energy industry. In 2008, Abbot reported revenues of around US$1.6 billion. YOUR SPACE: CVA Proposal Approved by Members and Creditors ---------------------------------------------------------- The Company Voluntary Arrangement (CVA) proposal presented to members and creditors of Your Space PLC, Workspace (North West Limited) and Your Space (UK) Limited (the Group) has been approved in a meeting Tuesday at Deloittes office in Leeds by an overwhelming majority of the Groups members and creditors. The directors of the Group appointed Daniel Butters and Bill Dawson of Deloitte, the business advisory firm, as Joint Nominees on October 27, 2009, and will now act as Joint Supervisors to the CVA. As a result of the CVA proposal being approved a dividend of approximately 20p in the pound is payable to the unsecured creditors over a 3 year period, with the potential in year 5 for up to a further 40p in the pound payable if the Group meets certain trading targets. An additional capital dividend would be payable dependent on property realizations. Your Space PLC is listed on the Alternative Investment Market (AIM), and is a provider of serviced office space and a developer of property, both for sale and its own use. As a result of a downturn in activity and asset values in the property market, the business has faced challenges in securing increased occupancy rates to target levels, which has ultimately had an adverse impact on trading performance. Daniel Butters, Partner in the Reorganisation Services practice in Deloittes Leeds office, said: "This is good news for the group as the CVA allows the business to remain as a going concern and maintain its trade. It offers job security to employees and certainty to its trading partners. "This growing use of CVAs demonstrates that in the appropriate situation Administration can be avoided." * UK: Construction Sector Faces Challenges, Grant Thornton Says --------------------------------------------------------------- Kathryn Hiddleston, Head of Construction at Grant Thornton, commented on the latest provisional data on administrations in the Construction Industry. The Q3 2009 provisional data, issued by the Insolvency Service shows 106 administrations of construction businesses. This is 4.7% down from the 111 construction business failures in Q2 and a fall of 13.2% from the 120 construction administrations in Q1. This is also a 47.2% drop from the peak of 156 construction business failures that were seen in the last quarter (Q4) of 2008. "There has been a steady decline in the rate of business failures in the construction industry this year but the 106 failures in Q3 mirror the 104 failures seen at the same period last year. It is also not far off the 2008 average of 117 construction business failures, which means that there has yet to be a significant decline in construction businesses going under. Failures in construction companies are still at a high rate and remain a major concern for the industry, despite the recent decline. "The tangible improvements in construction business failures may be partially driven by an upturn in the housing market as well as continued government infrastructure. However, rising unemployment and its effect on foreclosures indicates looming house price falls, which will undoubtedly impact the demand for construction businesses and services. Construction usually lags other sectors in recovering from a slump, so it is likely to fall much further before a real upturn is seen. Unfortunately this will not help the vast number of existing construction work which is now being considerably prolonged and even shelved. Hopefully, measures in the Pre Budget Report should act to mitigate some of the effects of the challenging climate being experienced by construction businesses. However, it remains important that they continue to remain focused on managing and sustaining their cash flow and finding effective ways of appropriately meeting customer demands." * UK: Businesses Face Worsening Access to Finance, Report Shows --------------------------------------------------------------- Access to finance remains a serious problem for British businesses, despite the Bank of England pumping 200 billion into the economy to boost money supply and stimulate lending, the British Chambers of Commerce said. In the latest Monthly Business Survey, published Tuesday by the British Chambers of Commerce, 33% of companies reported that accessing finance had been more difficult over the last three months. This compares with the same question asked in June, when 20% of businesses believed access to finance had worsened. Furthermore, the number of firms reporting an improved access to finance situation fell dropping from 6% in June, to just 3% in the latest survey. Despite the results pointing towards continued lending constraints, of the 400 businesses questioned, 64% said that their biggest barrier to growth over the next 12 months was a lack of customer demand. Commenting, David Frost, Director General of the British Chambers of Commerce, said: "Our latest survey results show that the biggest issue facing British businesses is still demand for products and services. This means that any economic recovery is still fragile. Mr. Frost added: "It is clear that the huge sums that have been injected into the financial system by quantitative easing are still not reaching small and medium-sized businesses in anything like the scale required for business to invest for future success. "The Pre-Budget Report on December 9th must include measures that encourage companies to invest and improve confidence. Announcing that 2011s planned increase in National Insurance contributions will be scrapped would be a good start." =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 21-23, 2010 INSOL International Annual Regional Conference Madinat Jumeirah, Dubai, UAE Contact: 44-0-20-7929-6679 or http://www.insol.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, 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 * * *