/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100106.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, January 6, 2010, Vol. 11, No. 003 Headlines C Y P R U S E-CLEAR: PwC Takes Legal Action Over GBP35Mln Debt to Flyglobespan C Z E C H R E P U B L I C * CZECH REPUBLIC: Corporate Bankruptcies Up 42% to 1,480 in 2009 G E R M A N Y HEIDELBERGCEMENT AG: Seeks New Buyer for Israeli Operations I R E L A N D ANDERSON VALLEY: S&P Junks Ratings on Ten Classes of Notes EGRETFUNDING CLO: S&P Junks Ratings on Two Classes of Notes * IRELAND: Corporate Insolvencies Up 82% to 1,406 in 2009 I T A L Y BANCA ITALEASE: Banco Popolare Buys Options; to Acquire 3.6% Stake TENARIS SA: To Keep Five Italian Plants Open After Union Deal K A Z A K H S T A N ALLIANCE KLLP: Creditors Must File Claims by January 13 ATYRAU LOGIN: Creditors Must File Claims by January 13 BARAZINBAR INDUSTRIAL: Creditors Must File Claims by January 13 BIONIM JSC: Creditors Must File Claims by January 13 ELIMAI PHARMATSIYA: Creditors Must File Claims by January 13 GAS ENERGO: Creditors Must File Claims by January 13 INTER SERVICE: Creditors Must File Claims by January 13 INVEST TECHNOLOGIYI: Creditors Must File Claims by January 13 KOKSHE NUR: Creditors Must File Claims by January 13 TABYS SN: Creditors Must File Claims by January 13 K Y R G Y Z S T A N BEST LLC: Creditors Must File Claims by January 27 GIN FOOD: Creditors Must File Claims by January 27 N O R W A Y * NORWAY: Corporate Bankruptcies Hit Record Level in 2009 P O L A N D BANK BPH: Moody's Upgrades Bank Financial Strength Rating to 'D' GETIN BANK: Noble Bank Merger Deal Cues Moody's to Withdraw Rating R U S S I A CONSTRUCTION CERAMICS: Creditors Must File Claims by February 4 GLAV-TAMBOV-SROY: Creditors Must File Claims by February 4 PROM-BAK LLC: Creditors Must File Claims by February 4 TERBUNSKIY CONSTRUCTION: S. Suvorov Named Insolvency Manager TITAN-STROY: F. Voytsik Named Temporary Insolvency Manager UC RUSAL: Plans to Pay US$58 Mln in Fees to Banks Managing IPO U N I T E D K I N G D O M AROSA FUNDING: S&P Withdraws 'BB+' Rating on EUR150 Mil. Notes DEFINED RETURNS: Meteor Asset Buys Structured Product Books FLYGLOBESPAN: PwC Takes Legal Action Against E-Clear NDF ADMINISTRATION: Meteor Asset Buys Structured Product Books NORTHERN ROCK: Splits Into Good and Bank, Treasury Says RIVERSIDE FLEXIBLES: Administrators In Talks with Potential Buyer ROYAL BANK: Deal to Sell Pakistani Unit to MCB Collapses SPORTECH PLC: Secures New GBP91 Million Credit Facility THE ELLINGTON: Set to Reopen Next Month Following Sale * UK: 22 Cos. Delist From Aim Due to Insolvency, Financial Stress ********* =========== C Y P R U S =========== E-CLEAR: PwC Takes Legal Action Over GBP35Mln Debt to Flyglobespan ------------------------------------------------------------------ Brian Ferguson at The Scotsman reports that administrators for Flyglobespan have begun legal action against E-Clear, the credit card firm said to owe up to GBP35 million to the Scots airline. According to the report, accountancy firm PricewaterhouseCoopers is seeking to wind up E-Clear, the Cyprus-based company which handled online ticket sales for the airline. Three other firms are already understood to have launched similar cases against E-Clear, the report notes. The credit card processing firm has been accused of plunging Flyglobespan into administration just before Christmas by withholding payments, the report discloses. The report relates it emerged last week that PWC was in dispute with E-Clear over the Flyglobespan customers' missing payments. The legal action focuses on GBP20 million worth of bookings for flights which had been completed, the report says. "In the period since we were appointed administrators of Globespan, we have repeatedly asked E-Clear to confirm the level of funds they hold which have been received from Globespan customers," Ian Oakley-Smith, joint administrator at PWC, on Monday said, according to the report. "Globespan records indicate that some GBP35 million is being held, but no details to support the funds have been provided by E-Clear. "Before Christmas, the administrators requested the funds be placed in a joint account and this request has so far been refused." The report recalls some 4,500 Flyglobespan customers were stranded by the airline's collapse in mid-December and 550 staff lost their jobs. =========================== C Z E C H R E P U B L I C =========================== * CZECH REPUBLIC: Corporate Bankruptcies Up 42% to 1,480 in 2009 ---------------------------------------------------------------- Ceska Tiskova Kancelar reports that Czech Credit Bureau, citing data from the Cribis.cz database, on Monday said as many as 1,480 corporate bankruptcies were declared in the Czech Republic last year, a yr/yr growth of 42%. According to the report, Cribis.cz data have shown the number of insolvency petitions regarding businesses and entrepreneurs increased by 65% on the year to 4,754 last year. ============= G E R M A N Y ============= HEIDELBERGCEMENT AG: Seeks New Buyer for Israeli Operations ----------------------------------------------------------- Aaron Kirchfeld at Bloomberg News reports that HeidelbergCement AG is seeking a new buyer for its Israeli operations after an agreement to sell the unit to Mashav Initiating & Development Ltd. was dropped because of antitrust concerns. According to Bloomberg, HeidelbergCement and Mashav terminated the agreement, valuing the operations at EUR120 million (US$172 million), after opposition from Israeli antitrust officials. Bloomberg relates HeidelbergCement said in a statement Thursday it is evaluating various options and will receive ILS22.5 million (US$5.9 million) in compensation because of the cancellation. Bloomberg recalls HeidelbergCement raised almost EUR5 billion this year by selling shares and bonds to help reduce debt accumulated from the takeover of the U.K.'s Hanson Plc in 2007. The company said Thursday it will continue to sell non- strategic units to reduce debt, Bloomberg notes. About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI) -- http://www.heidelbergcement.com/-- is a global producer of cement, concrete and building materials. The Company's core activities include the production and distribution of cement and aggregates, the two raw materials for concrete. It is also engaged in in the provision of such products as ready-mixed concrete, as well as concrete products and elements. It divides its activities into four group areas: Europe-Central Asia, North America, Asia-Australia-Africa-Mediterranean and Group Services. It divides its products into three lines: cement, aggregates and concrete and building products. Its products include sand, gravel, crushed stone, white cement, trass cement, masonry cement, aquament and portland cement for hydraulic engineering, as well as light, heavy and aerated concrete building blocks, pavers, prefabricated ceilings and walls, prefabricated cellar units and prefabricated sewage works units, among others. In 2007, the Company took over Hanson Group. * * * As reported by the Troubled Company Reporter-Europe on Oct. 23, 2009, Fitch Ratings upgraded Germany-based HeidelbergCement AG's Long-term Issuer Default and senior unsecured ratings to 'BB-' from 'B' and 'CCC', respectively. The ratings had been removed from Rating Watch Positive where they were placed on 12 October 2009. The Outlook on the Long-term IDR is Positive. HC's Short-term IDR had been affirmed at 'B'. ============= I R E L A N D ============= ANDERSON VALLEY: S&P Junks Ratings on Ten Classes of Notes ---------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its ratings on eight classes of Anderson Valley CDO PLC's notes and five classes of Anderson Valley II CDO PLC's notes. The Anderson Valley transactions are hybrid investment-grade corporate collateralized debt obligations with portfolios that initially referenced primarily investment-grade corporate credits. Anderson Valley CDO closed in December 2006 and Anderson Valley II CDO closed in February 2007. The downgrades reflect: * The application of S&P's new corporate CDO criteria; * The defaults, downgrades, and CreditWatch placements that S&P observed in the transactions' underlying reference portfolios; and * S&P's assessment of the potential effect on each transaction of an event of default, which could be triggered if net losses in that transaction breach a 10% threshold. Both transactions experienced losses following defaults in the reference portfolios in 2008 and 2009. Based on information in the October 2009 trustee reports, net losses in Anderson Valley CDO were more than 7% and in Anderson Valley II CDO were more than 6%. Anderson Valley CDO's note issuance includes the class Q combination notes. Cash flows from the class S-2 and class A-2 notes as well as distributions from a portion of the transaction's subordinated notes back the class Q notes. S&P's analysis indicates that the repayment of the outstanding rated balance of class Q notes is possible as long as the class S-2 and A-2 notes are both fully repaid. S&P has therefore lowered the rating on the class Q notes to the lower of the rating of the class S-2 and A-2 notes. Ratings List Ratings Lowered and Removed From CreditWatch Negative Anderson Valley CDO PLC US$324.2 Million Fixed- And Floating-Rate Notes Rating ------ Class To From ----- -- ---- S-1 BB AAA/Watch Neg S-2 BB AAA/Watch Neg A-1 CCC AAA/Watch Neg A-2 CCC AAA/Watch Neg B-1 CCC- AA/Watch Neg C-1 CCC- A/Watch Neg D-1 CCC- BBB/Watch Neg Q CCC AAA/Watch Neg Anderson Valley CDO II PLC EUR86.4 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- S-1 BB AAA/Watch Neg A-1 CCC AAA/Watch Neg B-1 CCC- AA/Watch Neg C-1 CCC- A/Watch Neg D-1 CCC- BBB/Watch Neg EGRETFUNDING CLO: S&P Junks Ratings on Two Classes of Notes ----------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on EgretFunding CLO I PLC's class A to E notes. The downgrades follow the application of S&P's updated criteria for corporate collateralized debt obligations, as well as its assessment of the credit deterioration in the transaction portfolio. None of the ratings was affected by either the largest obligor default test or the largest industry default test, two supplemental stress tests S&P introduced as part of its criteria update. Ratings List Egret Funding CLO I PLC EUR378.9 Floating-Rate Notes and EUR43.0 Subordinated Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A A- AA+/Watch Neg B BBB- A+/Watch Neg C BB BBB/Watch Neg D CCC+ BB-/Watch Neg E CCC- B-/Watch Neg * IRELAND: Corporate Insolvencies Up 82% to 1,406 in 2009 --------------------------------------------------------- Laura Slattery at The Irish Times, citing new data compiled by InsolvencyJournal.ie, reports that four companies a day went out of business in 2009, with a similar rate of insolvency expected for most of 2010. According to the report, the figures show that 1,406 Irish businesses were declared insolvent last year. The report says a total of 156 companies went bust in December, the highest total of any month last year. The report relates an extremely tough trading environment for businesses across all sectors in 2009 led to an 82% surge in the number of insolvencies compared to 2008, while the number of failed businesses was 287% higher than that recorded in 2007. The construction industry was by far the worst-affected sector, with 453 construction companies declared insolvent as developers' debts spiraled out of control, the report notes. The services sector was the next hardest hit, with 278 insolvencies, while a plunge in consumer spending led to 201 retail companies collapsing in 2009, the report discloses. A high number of insolvencies were also recorded in the hospitality sector, where 154 companies were declared insolvent, and in manufacturing, where 123 companies went out of business, the report states. The motor industry was also especially badly hit, with 58 insolvencies, as new car sales evaporated, the report notes. The report says despite the overall rise in company insolvencies, there has been a 40% drop in the number of examinerships. This is the process whereby a company is given court protection from its creditors while it tries to find a way to survive. According to the report, only 37 companies applied for court protection in 2009, which corporate recovery specialist Ken Fennell of Kavanagh Fennell said could be attributed to demands from the High Court for higher standards in the examinership process. ========= I T A L Y ========= BANCA ITALEASE: Banco Popolare Buys Options; to Acquire 3.6% Stake ------------------------------------------------------------------ Andrew Davis at Bloomberg News reports that Banco Popolare SC said it had bought options that will allow it to acquire another 3.6% of Banca Italease SpA to raise its stake to more than 91%. According to Bloomberg, Popolare said in a statement distributed to the Italian Exchange that the options will be exercised by Jan. 8. Banca Italease SpA (BIT:BIL) -- http://www.italease.it/-- is an Italy-based banking company. Banca Italease provides retail leasing services through: Italease Secondacasa, offering real estate leasing; Tiarredo, providing furniture leasing; Tiarredo Arte, specializing in art leasing; Tiguido, offering car and motorcycle leasing, and Tivaro, providing boat leasing. Banca Italease also offers corporate leasing through its subsidiaries: LeasinGomme, Real Estate Leasing, Industrial Leasing, Public Sector Leasing and Corporate Car Leasing. Other areas of Company's operations are: subsidized leasing, medium and long-term lending, insurance products, factoring, long-term car leasing, and Interest Rate Swap (IRS) contracts. * * * As reported by the Troubled Company Reporter-Europe on Jan. 5, 2010, Fitch Ratings upgraded Banca Italease's Individual Rating to 'E' from 'F' following the completion of the offer period for the bank's capital increase on December 23. The bank's 'BBB+' Long-term Issuer Default Rating and its 'F2' Short-term IDR remain on Rating Watch Negative, on which they were placed in July 2009. The bank's Support rating was affirmed at '2'. The 'CCC' rating of the bank's EUR150 million trust preferred securities was placed on Rating Watch Positive. TENARIS SA: To Keep Five Italian Plants Open After Union Deal ------------------------------------------------------------- Tommaso Ebhardt at Bloomberg News reports that Tenaris SA will keep open all five of its plants in Italy after agreeing with labor unions to reduce its workforce in the country. Bloomberg relates Tenaris Dalmine SpA, the company's Italian unit, on Dec. 30 agreed with unions on a plan that includes 741 jobs cuts instead of a planned 1,024, and EUR114 million (US$163 million) of investments for a "strategic repositioning" of its business. Tenaris S.A. -- http://www.tenaris.com/-- is a global manufacturer and supplier of steel pipe products and related services for energy industry, as well as for other industrial applications. The Company's customers include oil and gas companies, as well as engineering companies engaged in constructing oil and gas gathering, transportation and processing facilities. Its principal products include casing, tubing, line pipe, and mechanical and structural pipes. The Company operates a network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in North and South America, Europe, Asia and Africa. In April 2009, the Company acquired 77.45% interest in Seamless Pipe Indonesia Jaya, an Indonesian processing business with heat treatment and connection threading facilities. =================== K A Z A K H S T A N =================== ALLIANCE KLLP: Creditors Must File Claims by January 13 ------------------------------------------------------- Creditors of LLP Alliance Kllp have until January 13, 2010, 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 November 3, 2009. ATYRAU LOGIN: Creditors Must File Claims by January 13 ------------------------------------------------------ Creditors of LLP Atyrau Login Service have until January 13, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau Satpaev Str. 3 Atyrau Kazakhstan The court commenced bankruptcy proceedings against the company on October 21, 2009. BARAZINBAR INDUSTRIAL: Creditors Must File Claims by January 13 --------------------------------------------------------------- LLP Barazinbar Industrial Invest Company is currently undergoing liquidation. Creditors have until January 13, 2010, to submit proofs of claim to: Tole Bi Str. 55 Almaty Kazakhstan BIONIM JSC: Creditors Must File Claims by January 13 ---------------------------------------------------- Branch of JSC Company Bionim is currently undergoing liquidation. Creditors have until January 13, 2010, to submit proofs of claim to: 50 Let Oktyabrya Str. 1 Tayinsha Tayinshynsky District North Kazakhstan Kazakhstan ELIMAI PHARMATSIYA: Creditors Must File Claims by January 13 ------------------------------------------------------------ Creditors of LLP Elimai Pharmatsiya have until January 13, 2010, 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 October 30, 2009. GAS ENERGO: Creditors Must File Claims by January 13 ---------------------------------------------------- Manufacturing Association Gas Energo Trans is currently undergoing liquidation. Creditors have until January 13, 2010, to submit proofs of claim to: 312 Strelkovaya Diviziya Ave. 22 Aktobe Kazakhstan INTER SERVICE: Creditors Must File Claims by January 13 ------------------------------------------------------- Creditors of LLP Firm Inter Service have until January 13, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya Str. 6 Pavlodar Kazakhstan The court commenced bankruptcy proceedings against the company on October 23, 2009. INVEST TECHNOLOGIYI: Creditors Must File Claims by January 13 ------------------------------------------------------------- LLP Invest Technologiyi is currently undergoing liquidation. Creditors have until January 13, 2010, to submit proofs of claim to: Abylhair Han Ave. 24-34 Aktobe Kazakhstan KOKSHE NUR: Creditors Must File Claims by January 13 ---------------------------------------------------- Creditors of LLP Kokshe Nur have until January 13, 2010, to submit proofs of claim to: Auelbekov Str. 139 Kokshetau Kazakhstan The Specialized Inter-Regional Economic Court of Kokshetau commenced bankruptcy proceedings against the company on October 19, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Kokshetau Gorky Str. 37 Kokshetau Kazakhstan TABYS SN: Creditors Must File Claims by January 13 -------------------------------------------------- Creditors of LLP Tabys SN have until January 13, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on October 13, 2009. =================== K Y R G Y Z S T A N =================== BEST LLC: Creditors Must File Claims by January 27 -------------------------------------------------- LLC Best is currently undergoing liquidation. Creditors have until January 27, 2010, to submit proofs of claim to: Kensai Savai Karasuisky District Osh Kyrgyzstan GIN FOOD: Creditors Must File Claims by January 27 -------------------------------------------------- LLC Gin Food is currently undergoing liquidation. Creditors have until January 27, 2010, to submit proofs of claim: Inquires can be addressed to (0-545) 95-55-45. =========== N O R W A Y =========== * NORWAY: Corporate Bankruptcies Hit Record Level in 2009 --------------------------------------------------------- AFP reports that the number of corporate bankruptcies in Norway broke a record last year. According to the report, official figures showed Monday 6,475 Norwegian businesses were forced to shut down in 2009. The report relates Norway's business registry said in a statement that the most bankruptcy-plagued sectors were retail, construction, hotels and restaurants. =========== P O L A N D =========== BANK BPH: Moody's Upgrades Bank Financial Strength Rating to 'D' ---------------------------------------------------------------- Moody's Investors Service has confirmed Bank BPH's Baa2 long-term local and foreign currency bank deposit ratings. The bank financial strength rating was upgraded to D, mapping to a baseline credit assessment of Ba2, from a BFSR of D- (BCA of Ba3). All ratings now have a stable outlook. These rating actions conclude the review for possible upgrade of the bank's ratings initiated by Moody's on August 21, 2008. The Prime-2 short-term deposit ratings of Bank BPH were not affected by this rating action. The rating action follows the completion of the legal merger between Bank BPH and GE Money Bank Polska, with General Electric Group assuming a larger shareholding of the combined group at 89%. This merger will promote the combined entity to the position of the 9th largest bank in Poland in terms of assets, with a stronger market position as a universal bank, a wider and more diversified customer base, solid capital ratios as well as more secure medium- term parent-backed funding. More specifically, the merger took place on December 31, 2009 by transferring all of GEMB's assets and liabilities to Bank BPH with a simultaneous increase in Bank BPH's share capital by an issue of merger shares, which Bank BPH would issue to the shareholders of GEMB. As a result, the merged bank's Tier 1 and capital adequacy ratios will compare favorably to peers. As regards funding and liquidity, the merged entity will have an increased dependence on wholesale sources and in particular parental funding. This is due to the fact that GEMB has been principally funded by GE group, which is common to other GE subsidiaries in the region and in line with GE's corporate policy. Despite BPH's efforts over the past year in terms of expanding its customer deposit base, Moody's observed some outflow of deposits in H1 2009 due to fierce competition in the market and aggressive pricing by other Polish entities. Therefore, the merged entity has one of the least favorable loan-to-deposit ratios compared with the rest of its Polish peer group. According to Moody's, going forward, any efforts by the merged entity to acquire customer deposits and improve its loan-to-deposit ratio will need to be evaluated in light of the incremental cost of funding and the impact on its net interest margin. However, core profitability of the combined entity has potential to improve over the medium term as a result of the merger on the back of higher-margin revenue structure of GEMB's portfolio and a wider product offering to a diversified customer base. The combined loan book will have a more balanced structure compared to the lending exposures of Bank BPH prior to the merger. However, the portfolio will have a higher proportion of foreign exchange mortgages, which will represent around 50% of the total loan book. Although Moody's expressed some concern regarding performance in this asset class during the Q1 2009 period of high volatility in exchange rates, the rating agency noted that the asset quality of FX mortgages remained resilient in the recent downturn. Nevertheless, Moody's said that it expects some degree of deterioration in this segment of the portfolio in line with unemployment trends, although overall asset quality trends of the merged entity may stabilize in 2010 in line with general market trends in the country. Finally, although the merged entity aims to expand its universal banking operations, which are focused on retail, SME and mid-caps, its future growth potential will be constrained by the availability of funding and competitive trends. Although there is some growth potential in these segments Moody's considers that the current market conditions in Poland are not conducive to rapid growth and to gaining significant market shares in the short term. Overall, however, the rating agency said that the upgrade in the BFSR reflects its view that Bank BPH's medium-term market position, has been strengthened by the merger, and that its risk profile and earnings potential are now comparable to those of the peer group in the D range. In terms of long-term bank deposit ratings, the merged entity achieves a three-notch uplift which takes into account Moody's assessment of a very high probability of support from GE (rated Aa2/P-1), the ultimate parent. Moody's does not incorporate any systemic support from Polish authorities due to the fact that the merged entity's retail deposit franchise will remain very limited and is not considered as systemically important. The stable outlook on the BFSR and long-term deposit ratings reflects Moody's expectation that -- after taking account of substantial restructuring costs and higher provisioning charges that led Bank BPH to book relatively large losses in the first nine months of 2009 -- the benefits of the merger will bring stability to the bank's performance in 2010 and to profitability and counterbalance pressure from general market trends. Moody's last announcement on Bank BPH was on July 31, 2009, when the rating agency said it maintained on review for possible upgrade the bank's D- BFSR and the Baa2 long-term bank deposit ratings. The ratings were placed on review for possible upgrade on August 21, 2008, after Moody's downgraded the long-term foreign currency bank deposit rating of Bank BPH SA (BPH) to Baa2 from A3 and its bank financial strength rating (BFSR) to D- from C-. Headquartered in Krakow Poland, Bank BPH reported IFRS consolidated net loss of EUR14.5 million and total assets EUR3.6 billion after three quarters into 2009. These ratings were affected: * BFSR upgraded to D (STA) from D-(RUR) * Local and foreign currency deposit ratings of Baa2 were confirmed GETIN BANK: Noble Bank Merger Deal Cues Moody's to Withdraw Rating ------------------------------------------------------------------ Moody's Investors Service has withdrawn all ratings of Getin Bank, as the entity has legally ceased to exist due to its merger with Noble Bank (unrated) as of January 4, 2010. This acquisition finishes the merger process initiated at the beginning of 2009 between the two entities which belong to the same group -- Getin Holding. This rating action does not reflect a change in the company's creditworthiness. Getin Bank had no rated debt outstanding at the time of the withdrawal. These ratings of Getin Bank have been withdrawn: * Long-term local currency deposit rating of Ba3 (negative outlook); * Short-term local currency deposit rating of Non-Prime; * Long-term foreign currency deposit rating of Ba3 (negative outlook); * Short-term foreign currency deposit rating of Non-Prime; * Foreign currency MTN ratings of Ba3(negative outlook)/Non-Prime and * Bank financial strength rating (BFSR) of D- (negative outlook). Moody's last rating action on Getin Bank was on April 27, 2009 when Moody's downgraded Getin Bank's long-term local and foreign currency deposit ratings to Ba3 from Ba2. The BFSR was downgraded to D- from D and the foreign currency debt rating to Ba3 from Ba2. All the ratings had been placed on negative outlook. The rating action concluded the review for possible downgrade initiated in January 2009. Headquartered in Katowice, Getin Bank reported net profit of PLN121 million (EUR27.1 million) under IFRS, with total assets of almost PLN24.3 billion (EUR5.45 billion) in H1 2009. =========== R U S S I A =========== CONSTRUCTION CERAMICS: Creditors Must File Claims by February 4 --------------------------------------------------------------- Creditors of LLC Construction Ceramics (TIN 1601005799, RVC 160101001, PSRN 1051655024750) have until February 4, 2010, to submit proofs of claims to: V. Shevelev Insolvency Manager Post User Box 222 Gvardeyskaya Str. 42 420073 Kazan Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?65?7653/2009-SG4?26. The Debtor can be reached at: LLC Construction Ceramics Zavodskaya Str. 59 Agryz 422230 Tatarstan Russia GLAV-TAMBOV-SROY: Creditors Must File Claims by February 4 ---------------------------------------------------------- Creditors of LLC Glav-Tambov-Stroy(Construction) (TIN 6829037349, PSRN 1076829008860) of claims to: V.Kuzin Insolvency Manager Office 227 Sovetskaya Str. 118 392000 Tambov Russia The Arbitration Court of Tambovskaya will convene on May 12, 2010, to hear bankruptcy proceedings. The case is docketed under Case No. ?64?1085/09. The Debtor can be reached at: LLC Glav-Tambov-Stroy Z.Kosmodemyanskoy Str. 1 Tambov Russia PROM-BAK LLC: Creditors Must File Claims by February 4 ------------------------------------------------------ Creditors of LLC Prom-Bak (TIN 1650049005, PSRN 1031616018807) (Fuel Tanks Production) have until February 4, 2010, to submit proofs of claims to: B.Surov Insolvency Manager Post User Box 309 420126 Kazan Russia The Arbitration Court of Tatarstan will convene on February 5, 2010, to hear bankruptcy proceedings. The case is docketed under Case No. ?65?9490/2009-SG4?21. The Debtor can be reached at: LLC Prom-Bak Moskovskaya Str. 92 Biklyan Tukaevskiy 423878 Tatarstan Russia TERBUNSKIY CONSTRUCTION: S. Suvorov Named Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Lipetskaya appointed S. Suvorov as Insolvency Manager for LLC Terbunskiy Construction Structures Plant. The case is docketed under Case No. ?36?1014/2009. He can be reached at: Isayeva Str. 9-58 Korolev 141075 Moskovskaya Russia TITAN-STROY: F. Voytsik Named Temporary Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Tomskaya appointed F.Voytsik as Temporary Insolvency Manager for LLC Titan-Stroy-Servis (TIN 7017139645, PSRN 1067017068733) (Construction). The case is docketed under Case No. ?67?8310/09. He can be reached at: Kartashova STr. 37-29 634041 Tomsk Russia The Debtor can be reached at: LLC Titan-Stroy-Servis Office 273 Lebedeva Str. 11 634061 Tomskaya Russia UC RUSAL: Plans to Pay US$58 Mln in Fees to Banks Managing IPO -------------------------------------------------------------- Elisa Martinuzzi at Bloomberg News reports that United Co. Rusal Ltd. plans to pay banks managing its initial public offering about HK$450 million (US$58 million) in fees this month. The company will pay banks led by BNP Paribas SA and Credit Suisse Group AG an underwriting fee of HK$328 million, or about 1.89% of what is raised, assuming Rusal sells shares at the midpoint of the range it's seeking, Bloomberg says citing the offer document. As reported by the Troubled Company Reporter-Europe on Jan. 4, 2010, Bloomberg News said plans to raise as much as HK$20.1 billion (US$2.6 billion) in a Hong Kong IPO. Citing a statement filed to the city's stock exchange Thursday, Bloomberg disclosed the company, will sell 1.61 billion shares at HK$9.10 to HK$12.50 each. According to Bloomberg, it is offering a stake of about 10.6% in the form of shares and global depositary receipts. "The group intends to use all the net proceeds received from the global offering to immediately reduce outstanding debt and to satisfy other obligations to its creditors," the company said in the statement, according to Bloomberg. Bloomberg recalled Rusal's debt almost doubled last year after buying a quarter of OAO GMK Norilsk Nickel before commodity prices collapsed. It reached agreements with creditors earlier this year to restructure US$16.8 billion of obligations, cutting debt to US$14.9 billion, Bloomberg noted. 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. =========================== U N I T E D K I N G D O M =========================== AROSA FUNDING: S&P Withdraws 'BB+' Rating on EUR150 Mil. Notes -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB+' credit rating on Arosa Funding Ltd.'s EUR150 million secured floating- rate credit linked notes series 2007-1. The withdrawal follows the arranger's recent notification to S&P of the early termination of the transaction. DEFINED RETURNS: Meteor Asset Buys Structured Product Books ----------------------------------------------------------- Lorraine Cushnie at IFAonline reports that Meteor Asset Management has acquired the structured product books of both NDF Administration Limited and Defined Returns Limited. According to the report, the sale excludes Lehman Brothers-backed structured products for which the FSCS has begun considering compensation claims. The report says under the terms of the sale, Meteor will take on responsibility for customer account administration including the processing of income payments, surrenders and maturities. The report recalls NDFA and Defined Returns went into administration on October 14, 2009 as they were unable to meet their liabilities for potential compensation claims for Lehman-backed structured plans. Since then administrator Grant Thornton has been reviewing the firms' finances, the report recounts. FLYGLOBESPAN: PwC Takes Legal Action Against E-Clear ---------------------------------------------------- Brian Ferguson at The Scotsman reports that administrators for Flyglobespan have begun legal action against E-Clear, the credit card firm said to owe up to GBP35 million to the Scots airline. According to the report, accountancy firm PricewaterhouseCoopers is seeking to wind up E-Clear, the Cyprus-based company which handled online ticket sales for the airline. The credit card processing firm has been accused of plunging Flyglobespan into administration just before Christmas by withholding payments, the report discloses. The report relates it emerged last week that PWC was in dispute with E-Clear over the Flyglobespan customers' missing payments. The legal action focuses on GBP20 million worth of bookings for flights which had been completed, the report says. "In the period since we were appointed administrators of Globespan, we have repeatedly asked E-Clear to confirm the level of funds they hold which have been received from Globespan customers," Ian Oakley-Smith, joint administrator at PWC, on Monday said, according to the report. "Globespan records indicate that some GBP35 million is being held, but no details to support the funds have been provided by E-Clear. "Before Christmas, the administrators requested the funds be placed in a joint account and this request has so far been refused." The report recalls some 4,500 Flyglobespan customers were stranded by the airline's collapse in mid-December and 550 staff lost their jobs. About Globespan Group plc/Globespan Airways Limited Established in 1970, the company provided flight only and package holidays to a number of destinations across Europe as well as Orlando in America from airports in Aberdeen, Edinburgh and Glasgow. Globespan Group plc also operates flights between the U.K. and the Falkland Islands under a MOD contract. The company's subsidiary Alba Ground Holdings Ltd is also contracted to manage the baggage check-in for Flybe at Glasgow and Edinburgh airports. NDF ADMINISTRATION: Meteor Asset Buys Structured Product Books -------------------------------------------------------------- Lorraine Cushnie at IFAonline reports that Meteor Asset Management has acquired the structured product books of both NDF Administration Limited and Defined Returns Limited. According to the report, the sale excludes Lehman Brothers-backed structured products for which the FSCS has begun considering compensation claims. The report says under the terms of the sale, Meteor will take on responsibility for customer account administration including the processing of income payments, surrenders and maturities. The report recalls NDFA and Defined Returns went into administration on October 14, 2009 as they were unable to meet their liabilities for potential compensation claims for Lehman- backed structured plans. Since then administrator Grant Thornton has been reviewing the firms' finances, the report recounts. NORTHERN ROCK: Splits Into Good and Bank, Treasury Says ------------------------------------------------------- Marcus Leroux at Times Online reports that the Treasury on Monday confirmed that Northern Rock plc has been formally split into a good and bad bank. According to the report, the "bad bank" which will stop offering new mortgages, was on Monday officially named Northern Rock (Asset Management). The report relates Northern Rock said that the new "bad" bank has a residential mortgage book of about GBP50 billion and GBP4.5 billion of unsecured personal loans. The bank on Monday said that 90% of its mortgage book is not in arrears, the report notes. As reported yesterday by the Troubled Company Reporter-Europe, Bloomberg News, citing London-based The Observer, said that National Australia Bank Ltd. may consider bidding for Northern Rock Plc. Bloomberg disclosed NAB is seeking advisers on the deal. About Northern Rock Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported by the Troubled Company Reporter-Europe on Dec. 11, 2009, Standard & Poor's Ratings Services raised the rating on Northern Rock's dated subordinated lower Tier 2 debt to 'BB' from 'CCC'. The ratings on its perpetual subordinated debt and preference shares were unaffected. The outlook is stable. RIVERSIDE FLEXIBLES: Administrators In Talks with Potential Buyer ----------------------------------------------------------------- Josh Brooks at Packaging News reports that administrators for Riverside Flexibles Ltd. are in discussions with a potential buyer for the business. The identity of the possible buyer this time round has not been made public so far although there has been no pre-pack deal, the report notes. The report relates Steve Clancy and Steven Muncaster of the Manchester office of Menzies Corporate Restructuring were appointed as administrators of the firm on December 11 last year. According to the report, a spokesman for MCR said that the company was currently operating "as normal" and that no redundancies had been made since the administrators were called in three weeks ago. Based in Somerset, Riverside Flexibles Ltd. produces flexible packaging for the food, healthcare and confectionery sectors. ROYAL BANK: Deal to Sell Pakistani Unit to MCB Collapses -------------------------------------------------------- Adam Jones and Farhan Bokhari at The Financial Times report that a deal to sell Royal Bank of Scotland's Pakistani unit to MCB Bank failed. The FT recalls RBS announced in August that it was selling a 99.4% stake in the unit to MCB, a Pakistani rival, for PKR7.2 billion (GBP53 million). The FT relates in a brief stock exchange statement on Monday RBS said that the deal had lapsed because it had not received the necessary regulatory approval by the end of 2009. According to the FT, Pakistan's central bank in Karachi said it had refused to clear the deal because of a dispute over MCB depositing its shares as security. RBS indicated that a fresh buyer was now being sought for the unit, which has more than 300,000 customers, the FT notes. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on Dec. 22, 2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's (RBS Group) and The Royal Bank of Scotland's Individual Ratings to 'D/E' from 'E' and removed the Rating Watch Positive. The upgrade of the Individual Ratings reflects improvements in the group's capital combined with some progress in restructuring the balance sheet. SPORTECH PLC: Secures New GBP91 Million Credit Facility ------------------------------------------------------- Marcus Leroux at Times Online reports that Sportech plc has secured a new GBP91 million credit facility. According to Times Online, the company, which acquired Littlewoods Gaming in 2000, had been renegotiating its banking covenants with Lloyds Banking Group since November, when it asked for more flexibility to enable it to look at "important strategic opportunities". "We are pleased to have agreed this position with Lloyds Banking Group, which has been very supportive throughout this process. We now have in place robust facilities, which allow the group to pursue both organic and development opportunities," Times Online quoted Ian Penrose, Sportech's chief executive, as saying. Sportech has been mooted as a possible bidder for The Tote, the state-owned bookmaker which the Government has floated the possibility of selling, Times Online relates. Times Online says the new facilities will carry an interest rate of 3.5% above Libor, the rate London banks charge to lend to each other. The facility's covenants have also been relaxed to provide more headroom before its expiry in 2013, Times Online notes. Miles Johnson at The Financial Times notes tough trading conditions put pressure on Sportech's covenants. The company's net debt stands at GBP81.5 million, the FT discloses. Sportech PLC -- http://www.sportechplc.com/-- is a United Kingdom-based holding company. The Company, and its subsidiaries, operate football pools and associated games through various distribution channels, including direct mail and telephone, agent- based collection and via the Internet. It also operates a portfolio of online casino, poker, bingo and fixed odds games businesses through its e-Gaming division. The Company has two segments: e-Gaming and football gaming. In the e-Gaming segment, the Company developed a suite of GameOn brands for its casino, poker, bingo and quickplay products. During the year ended December 31, 2008, the Company acquired 4thegame.com and Vernons. THE ELLINGTON: Set to Reopen Next Month Following Sale ------------------------------------------------------ EP Leeds First & County reports that The Ellington, a luxury Leeds hotel, is set to reopen almost a year after it went into administration. The report relates administrators confirmed the sale of the hotel in March to Edinburgh-based West Register (Realisations) Limited for GBP3.13 million. The report says the hotel is now set to reopen next month, according to Bespoke Hotels, its new operator. * UK: 22 Cos. Delist From Aim Due to Insolvency, Financial Stress ----------------------------------------------------------------- Alistair Dawber at The Independent reports that 22 Aim companies had to delist in the fourth quarter because of insolvency or financial stress, down from 27 in previous three months. According to the report, the figure is more than double the amount that cited insolvency or financial stress as their reason for delisting a year ago. Citing Trowers & Hamlins, a City law firm, and the accountancy group UHY Hacker Young, report discloses the number of companies delisting from Aim increased in the fourth quarter to 73, from 63 between June and September. The report notes the research shows takeover activity became the leading reason for delisting from AIM in the three months to the end of December. Nearly a third, 23, of the delistings was due to companies being taken over in the fourth quarter, versus 13 takeovers in third quarter, the report discloses. ********* 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 2010. 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 * * *