/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100108.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 8, 2010, Vol. 11, No. 005 Headlines C Z E C H R E P U B L I C KBC GROEP: May Sell CSOB Minority Stake in Prague IPO * CZECH REPUBLIC: Insolvency Proposals Filed in 2009 Reach 9,492 D E N M A R K * DENMARK: Corporate Bankruptcies Up 50% to 5,900 in 2009 F R A N C E THEOLIA SA: Restructuring Plan, Capital Increase Likely to Succeed G E R M A N Y CONTINENTAL AG: To Raise EUR1.1BB in Stock Sale to Refinance Debt H U N G A R Y * HUNGARY: Corporate Bankruptcies Up 31.5% to 15,066 in 2009 I R E L A N D CLOVERIE PLC: S&P Withdraws 'CCC-' Rating on EUR5 Mil. Notes EP MOONEY: Liquidation Auction Scheduled for January 16 WATERFORD WEDGWOOD: Deloitte to Sell Crystal Manufacturing Plant K A Z A K H S T A N ALMATY CASPIAN: Creditors Must File Claims by January 20 ASIA PIPE: Creditors Must File Claims by January 20 CASPIYSKAYA STROITELNAYA: Creditors Must File Claims by January 20 CENTRE OF PSYCHOLOGICAL: Creditors Must File Claims by January 20 ELECTRONIC SERVICE: Creditors Must File Claims by January 20 IFK ASPECT: Creditors Must File Claims by January 20 TECHNO PARK: Creditors Must File Claims by January 20 TURKESTAN OIL: Creditors Must File Claims by January 20 K Y R G Y Z S T A N IDEAL STROY: Creditors Must File Claims by February 4 ROSE JEWELLERY: Creditors Must File Claims by February 4 L I T H U A N I A LEO LT: Liquidation Resolution Takes Effect N E T H E R L A N D S SCEPTRE CAPITAL: S&P Raises Rating on EUR25 Mil. Notes to 'BB-' R U S S I A ATLANTIC FISH: Murmanskaya Bankruptcy Hearing Set February 15 RIK CONSTRUCTION: Moskovskaya Bankruptcy Hearing Set February 24 S W E D E N GENERAL MOTORS: Spyker Submits New Bid for Saab Unit GENERAL MOTORS: Ecclestone, Genii Capital to Make Joint Saab Bid S W I T Z E R L A N D * SWITZERLAND: Corporate Bankruptcies Total 5,105 in 2009 T U R K E Y * TURKEY: Fitch Assigns 'BB+' Rating on US$2 Bil. Eurobond U K R A I N E VECTOR OIL: Odessa Court Commences Liquidation Procedure U N I T E D K I N G D O M BRENVILLE CONSTRUCTION: In Administration; KPMG Appointed BRITISH AIRWAYS: To Hold Fresh Talks with Cabin Crew Union DUBAI WORLD: Unit Seeks Secondary Listing on London Stock Exchange GRAPHIC ARTS: Goes Into Administration HELIX CAPITAL: S&P Raises Rating on EUR77 Mil. Notes to 'BB-' INEOS GROUP: Delays IPO Plan; Mulls Asset Sale to Cut Debts LEHMAN BROTHERS: PwC's UK Plan Garners Support From Creditors LEHMAN BROTHERS: UK Issues Ruling on Pre-Admin. Client Money LEHMAN BROTHERS: UK Sets March 18 as True Assets Claims Bar Date MANCHESTER CITY: Owner Converts GBP305 Million Debt Into Equity * UK: More Legal Firms to Face Insolvency This Year, Glithero Says X X X X X X X X * BOOK REVIEW: Taking America - How We Got from the First Hostile ********* =========================== C Z E C H R E P U B L I C =========================== KBC GROEP: May Sell CSOB Minority Stake in Prague IPO ----------------------------------------------------- KBC Groep NV may sell a minority stake in Czech bank CSOB AS in an initial public offering on the Prague Stock Exchange in April or May, Krystof Chamonikolas and Lenka Ponikelska at Bloomberg News report, citing bourse Chief Executive Officer Petr Koblic. According to Bloomberg, Mr. Koblic said that timing is an estimate, adding that he hasn't received confirmation from KBC or its Czech unit, Ceskoslovenska Obchodni Banka. Bloomberg recalls KBC said in November it would float as much as 40% of CSOB in Prague this year and sell other assets in Europe in an attempt to repay EUR7 billion (US$10 billion) of taxpayer funds by 2013. Prague-based brokerage Wood & Co.'s wrote in a report in November that CSOB may have a market capitalization of about CZK132 billion (US$7.2 billion), Bloomberg notes. Restructuring Agreement As reported by the Troubled Company Reporter-Europe on Nov. 20, 2009, The Financial Times said the KBC Groep reached an agreement with the European Commission on its restructuring. According to the FT, KBC will slim its balance sheet by nearly a fifth and reimburse EUR7 billion (US$10.5 billion) of state aid by 2013 through the winding down of its businesses and through asset disposals. The FT noted that while KBC will sell its merchant banking and private banking arms, float part of its Czech banking operation and forgo any acquisitions in the medium term, the group will retain banking and insurance operations in its core markets. The KBC restructuring will cut the bank's risk-weighted assets by 25% and entail no capital increase, the FT said. The group will pay back the EUR7 billion of state aid it received from the Belgian and Flemish governments through retained earnings, and by paying no dividend until 2011 at the earliest, the FT disclosed. About KBC Groep NV Headquartered in Brussels, Belgium, KBC Groep NV a.k.a KBC Group NV (EBR:KBC) -- http://www.kbc.com/-- is engaged in banking, insurance and wealth management for private banking clients, retail customers and medium-sized enterprises. It has expertise in asset management and the financial markets. The company's activity is composed of five divisions: the Belgium, the Central & Eastern Europe and Russia (CEER), the Merchant Banking, the European Private Banking, and the Shared Services & Operations business units. Each of these units has its own management committee and oversees both the banking and the insurance activities. The company is active in Belgium and in other selected countries, including Hungary, Poland, Slovakia, Czech Republic, Bulgaria, Romania, Serbia and Russia. KBC Groep NV also operates to a less extent in the United States and in Southeast Asia. The company has three subsidiaries: KBC Bank, KBC Insurance and KBL European Private Bankers. * CZECH REPUBLIC: Insolvency Proposals Filed in 2009 Reach 9,492 ---------------------------------------------------------------- CTK, citing a survey by Creditreform, reports that as many as 9,492 insolvency proposals were filed last year, 77% more than in 2008, and the number of proposals filed for companies grew by 54% to 5,255. The solution to insolvency proposals of companies is either bankruptcy or reorganization, the report says. According to the report, reorganization was allowed to 16 companies. A total of 1,553 bankruptcies were declared last year, the highest number since 2005 and 412 more than in 2008, the report discloses. The report relates a further 1,721 insolvency proposals were turned down last year, 90% of them due to very low assets. Debtors are being erased from the register of companies in such cases, the report says. The figures again show the disproportion between the use of bankruptcies and reorganization, the report notes. "Creditors rather tend to distrust reorganization and prefer the fast sale of property and the payment of at least part of their claims. A recent amendment [to law] has attempted to support the use of reorganization. We can see that interest in this solution is slowly growing," the report quoted Jiri Markvart of law office Ambruz & Dark as saying. Creditreform ascribes the growth in the number of insolvencies to the economic crisis whose impacts started to be felt in the Czech Republic in a significant way in the last quarter of 2008 already, the report states. ============= D E N M A R K ============= * DENMARK: Corporate Bankruptcies Up 50% to 5,900 in 2009 --------------------------------------------------------- Xinhua reports that nearly 5,900 companies went bankrupt in Denmark in 2009, a 50% increase over 2008. According to Xinhua, the Danish daily Politiken said in a report agriculture, fisheries, financial institutions, production companies and the health sector were worst hit by the economic crisis, with the highest increases in bankruptcies. Xinhua, citing the Politiken report, notes the bankruptcy rising rate declined in December 2009, with 564 companies having been bankrupt, compared with 596 in December 2008. Gerd Buchhave at borsen.dk reports December had 5.4% fewer bankruptcies than December 2008. Seasonally adjusted, this was the second month running with a decreasing number of bankruptcies, borsen.dk states. According borsen.dk, Christian Hilligsoe Heinig, chief analyst at Sydbank, expects that 2009 will remain the record year of bankruptcies, although a high level of bankruptcies is also expected in 2010. =========== F R A N C E =========== THEOLIA SA: Restructuring Plan, Capital Increase Likely to Succeed ------------------------------------------------------------------ Tara Patel at Bloomberg News reports that Theolia SA said there's a "high" probability that a plan to restructure bonds and raise as much as EUR100 million (US$144 million) in capital will succeed. "We are making an extremely attractive offer to current shareholders which gives me reason to believe the probability for success is fairly high," Bloomberg quoted Theolia Chief Executive Officer Marc van't Noordende as saying Tuesday on a conference call. According to Bloomberg, Mr. van't Noordende said the company plans to sell new shares at EUR1 apiece, less than the current stock price of about EUR3. Bloomberg relates Theolia, which suffered from tighter project financing for the wind industry during the recession, has announced plans to sell assets, save costs and halt operations in some countries to regain investor confidence. The company's restructuring proposal includes a partial debt write-off and improved terms for share conversion for bondholders, Bloomberg notes. As reported by the Troubled Company Reporter-Europe on Jan. 4, 2010, Bloomberg News said more than 65% of Oceanes bondholders agreed to the restructuring proposal. Bloomberg disclosed the plan still needs final approval at a bondholders meeting, to be held before March 15, and is contingent on the capital increase, targeted for April or May. "A failure of the convertible-bond restructuring would increase the risk of no access to financing wind projects in development and could force the company to consider creditor protection available under French law," Theolia said, according to Bloomberg. The plan "should ensure both the continuity of its operations beyond 2011 and continuation of its new strategy." Theolia SA (EPA:TEO) -- http://www.theolia.com/-- is a France-based energy company that develops and manages renewable energy sources. It specializes in the production of electricity using wind power, as well as in the construction of wind power plants and turbines, based notably in France and Germany. Additionally, the Company is engaged in non-wind turbine activities, such as the utilization of biomass, cogeneration and biogas techniques for the production of electricity, through its subsidiary, THENERGO. Theolia SA operates several subsidiaries, including Ventura, Natenco SAS, Meastrale Green Energy and Theolia Iberica. The Company is operational in such countries as Germany, Spain, Brazil, Greece, Italy, India and Morocco. ============= G E R M A N Y ============= CONTINENTAL AG: To Raise EUR1.1BB in Stock Sale to Refinance Debt ----------------------------------------------------------------- Aaron Kirchfeld and Chris Reiter at Bloomberg News report that Continental AG plans to raise EUR1.1 billion (US$1.6 billion) in a stock sale to help refinance debt after receiving approval from its supervisory board. Bloomberg relates Continental said in a statement Wednesday a group of banks led by Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. agreed to underwrite the sale of 31 million new shares at EUR35 each. Bloomberg recalls Continental's lenders last month agreed to extend the company a EUR2.5-billion loan on condition that it raises EUR1 billion in fresh capital by selling new shares. The two-year loan and stock sale will go toward refinancing a EUR3.5-billion loan due in August, Bloomberg says. According to Bloomberg, pending regulatory approval, the subscription will take place from Jan. 12 to Jan. 25. Continental, Europe's second-largest tiremaker, has recorded losses for four consecutive quarters as it struggles with the worst auto-industry crisis in decades, Bloomberg discloses. The company is laden with EUR9.5 billion in debt after acquiring the VDO auto-parts unit from Siemens AG in 2007, Bloomberg notes. About Continental AG Hanover, Germany-based Continental AG (OTC:CTTAY) -- http://www.conti-online.com/-- is an automotive industry supplier. The Company focuses its activities on the development, production and distribution of products that improve driving safety, driving dynamics and ride comfort. It operates in six divisions. Chassis and Safety provides active and passive driving safety, safety and chassis sensor systems, as well as chassis components. Powertrain focuses on engine systems, hybrid electric drives, injection technology, and sensors and actuators, among others. Interior manufactures information management modules and wireless mobile devices. Passenger and Light Truck Tires provides tires for passenger cars, motorcycles and bicycles. Commercial Vehicle Tires offers tires for trucks, as well as industrial and off-the-road vehicles. ContiTech specializes in the rubber and plastics technology, offering parts, components and systems for the automotive industry and other sectors. In January 2009, Schaeffler KG acquired 49.9% interest in the Company. ============= H U N G A R Y ============= * HUNGARY: Corporate Bankruptcies Up 31.5% to 15,066 in 2009 ------------------------------------------------------------ MTI-Econews, citing Opten, reports that the number of Hungarian companies that collapsed rose 31.5% to 15,066 in 2009. According to the report, the number of voluntary liquidations jumped 44% to 14,000 in 2009. The report notes Opten strategic director Hajnalka Csorbai said the trend is not likely to improve markedly in the first half of 2010. ============= I R E L A N D ============= CLOVERIE PLC: S&P Withdraws 'CCC-' Rating on EUR5 Mil. Notes ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'CCC-' rating on Cloverie PLC's EUR5 million class B floating-rate portfolio credit-linked notes series 2005-24. The withdrawal follows notification to us that the issuer has repurchased the notes. EP MOONEY: Liquidation Auction Scheduled for January 16 ------------------------------------------------------- RTE News reports that more than 250 cars are to be auctioned off later this month as part of the liquidation of the EP Mooney car dealership by Paul McCann at Grant Thornton. According to the report, the cars being sold include Jaguars, BMWs and Volvos and have a total value of more than EUR3 million. The report says all cars are to be auctioned off on January 16 and can be viewed beforehand at the EP Mooney dealership on the Naas Road in Dublin. The report recalls EP Mooney, one of the country's best known car dealerships, was put into liquidation in November with the loss of around 90 jobs. WATERFORD WEDGWOOD: Deloitte to Sell Crystal Manufacturing Plant ---------------------------------------------------------------- Louisa Fahy at Bloomberg News reports that Deloitte LLP, administrators to Waterford Wedgwood Plc, plans to sell the company's crystal manufacturing plant, a year after the crystal maker went into receivership. Bloomberg relates a spokesman for Deloitte on Tuesday said the sale of the 36-acre site in Kilbarry, southeast Ireland, will be handled by Savills real-estate agent in the Irish city of Cork. The Kilbarry site is likely to be sold for EUR10 million (US$14.4 million) to EUR20 million, Bloomberg says citing the Irish Times. According to Bloomberg, the Times said at least one overseas buyer is interested in bidding for the plant. Waterford Wedgwood plc -- http://www.waterfordwedgwood.com/-- is an Ireland-based holding company. The Company, along with its subsidiaries, is engaged in the manufacture, marketing and distribution of luxury lifestyle products through four international brands, Waterford Crystal, Wedgwood, Royal Doulton and Rosenthal. The Company is organized into three segments: Waterford Crystal, Ceramics Group and W-C Designs & Spring. Waterford Crystal includes the manufacture and distribution of Waterford Crystal Stuart Crystal, Edinburgh Crystal and Cashs Mail Order products. Ceramics Group includes the manufacture and distribution of ceramics products by Wedgwood, Royal Doulton and Rosenthal, and the distribution of crystal products in certain markets. W-C Designs & Spring consists of Spring, a distributor of a range of cookware products and W-C Designs, a distributor of linen products including Waterford linens under a license from Waterford Crystal. =================== K A Z A K H S T A N =================== ALMATY CASPIAN: Creditors Must File Claims by January 20 -------------------------------------------------------- LLP Almaty Caspian Sea International Logistics Limited is currently undergoing liquidation. Creditors have until January 20, 2010, to submit proofs of claim to: Makataev Str. 47 Almaty Kazakhstan ASIA PIPE: Creditors Must File Claims by January 20 --------------------------------------------------- LLP Asia Pipe Company is currently undergoing liquidation. Creditors have until January 20, 2010, to submit proofs of claim to: Micro District 1, 73b Almaty Kazakhstan CASPIYSKAYA STROITELNAYA: Creditors Must File Claims by January 20 ------------------------------------------------------------------ Creditors of LLP Caspian Construction Company Caspiyskaya Stroitelnaya Companiya have until January 20, 2010, to submit proofs of claim to: Abai Str. 10a Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on October 27, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Atyrau Satpaev Str. 3 Atyrau Kazakhstan CENTRE OF PSYCHOLOGICAL: Creditors Must File Claims by January 20 ----------------------------------------------------------------- JSC Center of Social Psychological Rehabilitation of Drug Users Tsentr Sotsialno Psihologicheskoy Reabilitatsiyi Narkozavisimyh Lits is currently undergoing liquidation. Creditors have until January 20, 2010, to submit proofs of claim to: Razdolnoye Zerendinsky District Kokshetau Kazakhstan ELECTRONIC SERVICE: Creditors Must File Claims by January 20 ------------------------------------------------------------ Creditors of LLP Electronic Service have until January 20, 2010, to submit proofs of claim to: Almaty-9 Post office Box 22 Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on October 28, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan IFK ASPECT: Creditors Must File Claims by January 20 ---------------------------------------------------- JSC IFK Aspect is currently undergoing liquidation. Creditors have until January 20, 2010, to submit proofs of claim to: Mailin Str. 2/2-55 Kostanai Kazakhstan TECHNO PARK: Creditors Must File Claims by January 20 ----------------------------------------------------- Creditors of LLP Regional Innovation Center Techno Park Ug have until January 20, 2010, to submit proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of South Kazakhstan commenced bankruptcy proceedings against the company on October 21, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan TURKESTAN OIL: Creditors Must File Claims by January 20 ------------------------------------------------------- Creditors of LLP Turkestan Oil Product have until January 20, 2010, to submit proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of South Kazakhstan commenced bankruptcy proceedings against the company on October 26, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== IDEAL STROY: Creditors Must File Claims by February 4 ----------------------------------------------------- LLC Ideal Stroy Ltd. is currently undergoing liquidation. Creditors have until February 4, 2010, to submit proofs of claim to: Unusaliev Str. 142 Bishkek Kyrgyzstan ROSE JEWELLERY: Creditors Must File Claims by February 4 -------------------------------------------------------- LLC Rose Jewellery And Silver is currently undergoing liquidation. Creditors have until February 4, 2010, to submit proofs of claim to: Gorky Str. 27/1 Bishkek Kyrgyzstan ================= L I T H U A N I A ================= LEO LT: Liquidation Resolution Takes Effect ------------------------------------------- LEO LT, AB, which owns 351 316 161 shares of Rytu skirstomieji tinklai, AB, on January 6, 2010, announced that on December 31, 2009 a resolution, taken on December 30, 2009 by the sole shareholder of LEO LT (the Government of the Republic of Lithuania) to liquidation LEO LT took force. As reported by the Troubled Company Reporter-Europe on Dec. 9, 2009, the Lithuanian Government and NDX Energija UAB on Dec. 4 signed an agreement regarding the liquidation of LEO LT and cancellation of agreement for the establishment of a national investment company. As a result, the Lithuanian Government essentially became the sole shareholder of LEO LT. LEO LT owns 98.2% of VST AB shares. Headquartered in Vilnius, Lithuania, LEO LT AB -- http://www.leolt.lt-- is an energy holding company in Lithuania. ===================== N E T H E R L A N D S ===================== SCEPTRE CAPITAL: S&P Raises Rating on EUR25 Mil. Notes to 'BB-' --------------------------------------------------------------- Standard & Poor's Ratings Services raised to 'BB-' from 'CCC-' its credit rating on Sceptre Capital B.V.'s EUR25 million floating- rate repackaged "PowerTranche" notes series 2006-6. S&P raised the rating following its upgrade of the rating on the charged securities in this series. =========== R U S S I A =========== ATLANTIC FISH: Murmanskaya Bankruptcy Hearing Set February 15 ------------------------------------------------------------- The Arbitration Court of Murmanskaya will convene at 11:00 a.m. on February 15, 2010, to hear bankruptcy supervision procedure on LLC Atlantic Fish Company (TIN 5190159250, PSRN 1065190102559). The case is docketed under Case No. ?42?8368/2009. The Temporary Insolvency Manager is: O.Temchura 183049 Murmansk Russia The Debtor can be reached at: LLC Atlantic Fish Company Tralovaya Str. 14 183001 Murmansk Russia RIK CONSTRUCTION: Moskovskaya Bankruptcy Hearing Set February 24 ---------------------------------------------------------------- The Arbitration Court of Moskovskaya will convene at 10:10 a.m. on February 24, 2010, to hear bankruptcy supervision procedure on CJSC RIK Construction Invest (TIN 5027115294, PSRN 1065027011653). The case is docketed under Case No. ?41-36793/09. The Temporary Insolvency Manager is: V.Desyatskov Post User Box 21 125368 Moscow Russia The Debtor can be reached at: CJSC RIK Construction Invest Novaya Str. 3A Oktyabrskiy Lyuberetskiy 140060 Moskovskaya Russia =========== S W E D E N =========== GENERAL MOTORS: Spyker Submits New Bid for Saab Unit ---------------------------------------------------- Ola Kinnander at Bloomberg News reports that Spyker Cars NV Chief Executive Officer Victor Muller said the company has submitted its bid for General Motors Co.'s Saab unit in Sweden. "Now there's nothing more we can do, we just have to wait and see," Bloomberg quoted Mr. Muller as saying. "Whoever is the shepherd of Saab, the main thing is that it survives." Bloomberg recalls negotiations to sell Saab to Spyker, headed by Mr. Muller, collapsed Dec. 18 and Spyker submitted a second offer Dec. 20, which it revised yesterday. Bloomberg notes Mr. Muller said the Dutch super-car maker hasn't yet heard back from GM. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation 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) GENERAL MOTORS: Ecclestone, Genii Capital to Make Joint Saab Bid ---------------------------------------------------------------- Adam Ewing and Ola Kinnander at Bloomberg News reports that Formula One tycoon Bernie Ecclestone and partner Genii Capital are among bidders that are making last-ditch efforts to buy General Motors Co.'s Saab unit as the sale deadline passed. Genii Capital plans to hand in a cash offer, Bloomberg says, citing Lars Carlstroem, the Swedish investor who is working with Genii. Bloomberg relates Genii Capital said in an e-mailed statement yesterday that the company "has decided that given an adequate and short timeframe for finalizing its offer, it will aggressively work towards a successful closing of the transaction with all the relevant stakeholders of the company." According to Bloomberg, Genii said it will bid for a majority stake in Saab together with Ecclestone. "It's a good brand," Bloomberg quoted Mr. Ecclestone as saying in a phone interview. "It's a good brand that has probably been neglected by the current owners. We don?t own it yet, so let's see what happens." Bloomberg recalls GM Chief Executive Officer Ed Whitacre told a roundtable of reporters Jan. 6 that it is proceeding with its decision to close Saab. According to Bloomberg, Mr. Whitacre said no qualified buyer has emerged and GM doesn?t foresee a sale. "It's real easy -- show up with the money and you can have it," Mr. Whitacre said when asked whether GM had made a good-faith effort to sell Saab, according to Bloomberg. Bloomberg notes Saab board member Haakan Danielsson said an interview the unit is expected to hold a board meeting today, Jan. 8, where it will examine if it can restart production Jan. 11 after a four-week break. Mr. Danielsson, as cited by Bloomberg, said board members may also discuss any possible new bids for Saab. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation 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) ===================== S W I T Z E R L A N D ===================== * SWITZERLAND: Corporate Bankruptcies Total 5,105 in 2009 --------------------------------------------------------- Xinhua, citing Swissinfo.ch news Web site, reports that a record number of 5,105 bankruptcies were filed by Swiss firms in 2009, an increase of 26.7% from the previous year. According to Xinhua, the Web site, citing credit information firm Dun & Bradstreet, disclosed that December alone saw 558 bankruptcies, the highest monthly total in the last decade. =========== T U R K E Y =========== * TURKEY: Fitch Assigns 'BB+' Rating on US$2 Bil. Eurobond ---------------------------------------------------------- Fitch Ratings has assigned the Republic of Turkey's US$2 billion eurobond, due on 30 May 2040, a 'BB+' rating. The eurobond has a coupon rate of 6.75%, with a yield to investors of 6.85% and a spread over US Treasury bonds of 225 basis points. The rating is in line with Turkey's Long-term foreign currency Issuer Default Rating, which has a Stable Outlook. "The 30-year maturity and moderate yield on Turkey's sovereign eurobond highlights its creditworthiness and strong international capital market access," said Edward Parker, Head of Emerging Europe in Fitch's Sovereigns team. "The issue realizes a substantial part of the Treasury's 2010 annual eurobond issuance target of around US$5.5bn, as set out in its 2010 financing program." On December 3, 2009, Fitch upgraded Turkey's Long-term foreign currency IDR to 'BB+' from 'BB-', reflecting Turkey's relative resilience to the global financial crisis and some easing in prior acute constraints related to inflation, external finances and political risk. ============= U K R A I N E ============= VECTOR OIL: Odessa Court Commences Liquidation Procedure -------------------------------------------------------- The Financial reports that the economic court of Odessa oblast in Ukraine issued a decree and started the procedure for "liquidation of recognition the bankruptcy" of Vector Oil Trade Ltd. and Vector Oil Agroinvestments Ltd. (Odessa). According to the report, the court will accept claims of creditors during 30 days from Dec. 31, the day of the official promulgation. In 2008, the net income of Vector Oil Trade totaled UAH115.46 million, while Vector Oil Agroinvestments' net income stood at UAH29.25 million, the report discloses. Vector Oil Trade was engaged in wholesale purchasing of agricultural products with the average volumes of 150-170 thsd tonnes in the seasonal period and exporting to far-abroad countries. =========================== U N I T E D K I N G D O M =========================== BRENVILLE CONSTRUCTION: In Administration; KPMG Appointed --------------------------------------------------------- Rhiannon Hoyle at Construction News reports that Brenville Construction has been placed into administration, resulting in the loss of more than 20 jobs. The report relates KPMG's Mark Firmin and Howard Smith have been appointed as joint administrators. According to the report, administrator KPMG said the Bradford- based company went under "after experiencing cashflow difficulties". The report recalls company ceased trading last month, leaving a GBP7.5 million development of 111 apartments in the center of Scunthorpe unfinished. BRITISH AIRWAYS: To Hold Fresh Talks with Cabin Crew Union ---------------------------------------------------------- BBC News reports that British Airways plc is to hold fresh talks with its main union in an attempt to avert the renewed threat of a strike by the cabin crew. According to BBC, Unite said it and the airline had agreed to meet in the coming days to try to find a negotiated settlement to the row over jobs, pay and conditions. "We have said all along that this dispute could only be resolved through negotiation, rather than imposition or litigation, so we are delighted to be joining BA management in talks at the TUC," BBC quoted Unite joint general secretaries Derek Simpson and Tony Woodley as saying. "We will be approaching those talks in a constructive spirit, seeking to find a settlement that meets the real concerns of BA's skilled, loyal and professional cabin crew, while keeping the airline flying." As reported by the Troubled Company Reporter-Europe on Dec. 18, 2009, The Financial Times said the High Court ruled that a union ballot for a 12-day British Airways cabin crew strike over Christmas was invalid. The FT disclosed Judge Laura Cox ruled the 92.5% vote in favor of a strike that Unite union used to justify one of the longest walk-outs BA has ever faced had included people who had already agreed to take voluntary redundancy. The ruling prompted Unite to say it would hold a fresh ballot on strike action, BBC notes. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on 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. DUBAI WORLD: Unit Seeks Secondary Listing on London Stock Exchange ------------------------------------------------------------------ Simeon Kerr at The Financial Times reports that DP World, a unit of Dubai World but outside of the holding company's US$22 billion debt restructuring, has decided to seek a secondary listing on the London Stock Exchange in an overdue attempt to boost trading in its shares. According to the FT, DP World said it will start the listing process after the publication of its preliminary results in March, hoping to finalize the listing by the end of the second quarter. The FT relates DP World has been considering its options for some time, disappointed at the levels of liquidity achieved on Nasdaq Dubai. "DP World needs to list shares on a liquid market -- listing them on DIFX [Nasdaq Dubai's predecessor] was a mistake," the FT quoted Majd Shafiq of United Advisors as saying, arguing that access to greater liquidity generally translates into higher valuations. "London has always been and will continue to be the hub as far as Middle East capital markets are concerned and the LSE is the gravity center within that hub." 6-Month Standstill The Troubled Company Reporter, citing The Wall Street Journal and Bloomberg News, ran a story about Dubai World seeking a six-month standstill on its debt obligations. In a statement obtained by the Journal and Bloomberg, the government of Dubai said it would restructure Dubai World and has appointed Deloitte LLP to lead the restructuring effort, naming an executive at the consultancy as the group's "chief restructuring officer." The standstill will immediately affect US$3.52 billion of Islamic bonds due December 14 from the Company's property unit Nakheel. Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World has US$59 billion in liabilities. Bloomberg said Dubai accumulated US$80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year. The Journal said Standard & Poor's in an October report estimated Dubai World could be responsible for as much as 50% of Dubai's total government and corporate debt load of some US$80 billion to US$90 billion. Large Exposure As reported by the Troubled Company Reporter-Europe on Dec. 1, 2009, The Wall Street Journal's Chip Cummins, Dana Cimilluca and Sara Schaefer Munoz, citing a person familiar with the matter, said that U.K.'s Royal Bank of Scotland Group PLC, HSBC Holdings PLC, Barclays PLC, Lloyds Banking Group PLC, Standard Chartered PLC and ING Groep NV of the Netherlands, are among the international banks that have large exposure in Dubai World. RBS has lent roughly US$1 billion to Dubai World, another person said, according to the Journal. Sources also told the Journal Barclays's exposure to Dubai World is roughly US$200 million, and that exposure is effectively hedged. David Robertson at The (U.K) Times reported Credit Suisse has estimated that European banks could have EUR40 billion (GBP36 billion) in loans to Dubai and much of this could be at risk if the Gulf emirate defaults. The Journal, citing people familiar with the matter, said the banks with the greatest exposure to Dubai World are Abu Dhabi Commercial Bank and Emirate NBD PJSC, people familiar with the matter said. Dow Jones Newswires' Margot Patrick related that a report by the Emirates Banks Association said the top eight foreign banks in the United Arab Emirates by lending volume -- HSBC, Standard Chartered, Barclays, HSBC, Royal Bank of Scotland's ABN Amro, Citigroup Inc., BNP Paribas SA, Lloyds and Credit Agricole SA's Calyon, -- extended about US$36 billion in loans in 2008 throughout the federation, without breaking down the loans by emirate or type of borrower. About Dubai World Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer in global investments. As a holding company it operates a highly diversified spectrum of industrial segments and plays a major role in the emirate's rapid economic growth. Dubai World's investment spans four strategic growth areas of 21st Century commerce namely, Transport & Logistics, Drydocks & Maritime, Urban Development and Investment & Financial Services. Dubai World's portfolio includes DP World, one of the largest marine terminal operators in the world; Drydocks World & Dubai Maritime City designed to turn Dubai into a major ship-building and maritime hub; Economic Zones World which operates several free zones around the world including Jafza and TechnoPark in Dubai; Nakheel the property developer behind iconic projects such as The Palm Islands and The World among others; Limitless the international real estate master planner with current development projects in various parts of the world; Leisurecorp a global sports and leisure investment group, reshaping the industry by unlocking value across investment, development and brand opportunities; Dubai World Africa which oversees the regional development and portfolio of investments in the African continent; and Istithmar World, the group's investment arm that has a global footprint in finance, capital, leisure, aviation and various other business ventures. The Sun Never Sets on Dubai World, its Web site says. GRAPHIC ARTS: Goes Into Administration -------------------------------------- Adam Hooker at PrintWeek reports that Graphic Arts Equipment, a subsidiary of Litho Supplies, has gone into administration. PrintWeek relates Phil Duffy and David Whitehouse at MCR were appointed to the 44-staff business as administrators on Jan. 5, which had an estimated turnover of GBP5.88 million. Mr. Duffy told PrintWeek Tuesday that "the decision to enter administration follows the administration of Litho Supplies on December 22, 2009. The business will continue to trade with the full support of its manufacturers, suppliers and staff. The priority is to identify and negotiate a going concern sale of the business." At this stage, no redundancies have been made at the business, the report notes. Perivale-based Graphic Arts Equipment handles equipment from a large number of finishing companies in the UK. Its flagship business is Japanese equipment manufacturer Horizon. HELIX CAPITAL: S&P Raises Rating on EUR77 Mil. Notes to 'BB-' ------------------------------------------------------------- Standard & Poor's Ratings Services raised to 'BB-' from 'CCC-' its credit rating on Helix Capital (Jersey) Ltd.'s EUR77 million PowerTranche partial kicker floating-rate managed synthetic CDO notes series 2006-15. This rating action follows an upward revision to the credit enhancement for these notes following the restructuring of the transaction. In S&P's opinion, the credit enhancement is now sufficient to support a 'BB-' rating. The synthetic rated overcollateralization level achieved at the 'BB-' rating level is 100.4224%. INEOS GROUP: Delays IPO Plan; Mulls Asset Sale to Cut Debts ----------------------------------------------------------- Anousha Sakoui and Ed Crooks at The Financial Times report that Ineos Group Holdings plc has delayed its plans for an initial public offering. According to the FT, the IPO was one of a range of options that had been considered by the company to strengthen its balance sheet, which was burdened with more than EUR7 billion (US$10 billion) of debt. The FT notes that while Ineos has looked into an IPO with Barclays Capital, one of its main lending banks, the company now has no imminent plans for a listing. Ineos, the FT says, is now looking at full or partial sales of operating businesses to help reduce its debts. The FT relates Ineos expected turnover of EUR15.2 billion and EUR1.1 billion in ebitda earnings over the course of 2009. Ineos' net debt, which was EUR7.49 billion at the end of 2008, is roughly seven times last year's expected ebitda, the FT discloses. "I think Ineos would find it hard to make valuations work to pay off sufficient debt [through an IPO]," the FT quoted one person familiar with the situation as saying. The FT recalls the company in the summer agreed with banks a resetting of the covenants on its credit facilities. It has to repay EUR250 million of debt in January and EUR450 million in July 2011, the FT states. About INEOS Group INEOS Group is a diversified chemical company consisting of several businesses. Product lines include ethylene oxide-based specialty and intermediate chemicals, fluorochemicals used as refrigerants and propellants, and phenol and acetate products. INEOS Chlor makes chlor-alkali chemicals, and INEOS Films and Compounds manufactures PVC and PET films. INEOS Group was formed in 1998 after a management buyout led by CEO Jim Ratcliffe, who controls the group. Mr. Ratcliffe has placed INEOS among the world's top chemical companies (with ExxonMobil, Dow, and BASF) through his many and varied acquisitions. LEHMAN BROTHERS: PwC's UK Plan Garners Support From Creditors ------------------------------------------------------------- PricewaterhouseCooper's claim resolution agreement has garnered support from most of the 1,300 creditors and is expected to win approval of the United Kingdom High Court by the December 29, 2009, from the 90% majority the firm needs for the deal to push through, the Telegraph U.K. reported on December 26, 2009. However, if the votes fall short, PwC is expected to ask for a three-week extension or request that creditors accept the deal with a smaller majority and move forward with a reduced group, the report said. Steven Pearson, joint administrator and partner at PwC, said: "This deal represents the last opportunity to find a one-size- fits-all solution to the problem. After this, it is a very slow and difficult process to get people's assets back to them." According to the report, the plan now on the table is a contractual agreement rather than a court-driven process, which the U.K. Court rejected early this year. The current plan uses specific valuation dates to count up how much is owed to hedge funds on their derivative positions. On aggregate, the dates and formula selected benefit more hedge funds than they disadvantage. The current plan aims to thaw about US$11 billion in assets and return them to creditors before April 2010. PwC hopes to set a deadline with the U.K. court for further claims on the assets by the end of February 2010, with a goal of returning assets before the end of the first quarter. The creditors' committee in the U.K. bankruptcy case includes hedge-fund managers Ramius LLC, GLG Partners LP and Oceanwood Capital Management LLP. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: UK Issues Ruling on Pre-Admin. Client Money ------------------------------------------------------------ The United Kingdom High Court, on December 15, 2009, handed down judgment on an application brought by the joint administrators of Lehman Brothers International (Europe) seeking directions relating to the client money held by LBIE prior to its administration. The judgment follows the joint administrators' directions application issued on 1 May 2009 which sought to address a number of uncertainties in the FSA's client money rules. LBIE's records identified client money claims of some US$2.1 billion. The Administrators hold some US$1 billion in segregated pre- administration client money. Mr. Justice Briggs noted in his judgment that the FSA's rules were unclear in a number of important respects but found that: 1. The pool of pre-administration client money consists of those bank accounts and transaction accounts used by LBIE in order to segregate client money. The balances of the bank accounts at the time of LBIE's administration totaled approximately US$2.1 billion. The Joint Administrators may not recover all of these balances. 2. LBIE is not required to top up or adjust the client money pool, whether: -- for clients for whom no or insufficient money was segregated at the time of administration; -- for movements between the time of last segregation, being the morning of 12 September 2008, based on figures at as close of business on 11 September 2008, and the time of administration; or -- to make good any credit loss shortfall including, for example, the shortfall arising by reason of the insolvency of Lehman Brothers Bankhaus AG, with which LBIE had deposited US$1 billion of client money on 12 September for repayment on 15 September 2008). 3. The client money pool is to be distributed to those clients for whom LBIE had segregated client money at the time of its administration. These will generally be those clients who have already received information from the Joint Administrators advising them how much client money LBIE's books and records indicate was segregated for them by LBIE at the time of administration. Mr. Justice Briggs said that if the creditors have not received any information, it is likely LBIE did not segregate any client money for the creditors at the time of administration. Mr. Justice said his judgment does not permit the creditors to claim against the client money pool. 4. Clients' client money entitlements are to be calculated at the time of administration by reference to what was segregated by LBIE for them at that time. For many clients, this will be the same as that which was segregated for them at the time when LBIE last conducted its reconciliation and segregation of client money on the morning of 12 September 2008, which it did using data as at close of business on 11 September 2008. However, for some futures clients, the amount segregated for them in respect of certain of their futures' positions was adjusted between close of business on 11 September 2008 and the time of administration to reflect fluctuations in the value of those futures' positions. Those clients' client money entitlements will therefore reflect that adjustment. Mr. Justice Briggs noted that the judgment does not address whether clients for whom LBIE segregated sums in respect of depot breaks or unapplied credits have a client money entitlement in respect of those amounts. That issue is expected to be dealt with by way of a short addendum to the judgment. 5. Clients will be required to give credit for client money paid to them by LBIE (or its affiliates on LBIE's behalf) prior to the time of administration. Where LBIE segregated money for clients in respect of fails and those clients have subsequently received the relevant securities, clients will also be required to give credit accordingly. 6. In the absence of an agreement to the contrary, LBIE may not exercise any right of set-off or retention against clients' distributions from the client money pool in respect of debts owed by those clients to LBIE. 7. Mr. Justice further noted that the judgment does not decide whether particular clients may or may not be able to bring claims against the general estate in relation to pre-administration client money, whether as unsecured creditors or for the return of identifiable client money held by LBIE outside the client money pool. However, the Court did address some of the principles that would apply to any of those claims. Andrew Clark, partner at PricewaterhouseCoopers leading the team managing the client money matters, said, "[t]here has been a significant uncertainty over who is entitled to claim the client money which LBIE is holding. This decision provides clarity and enables us to confirm client entitlements." The judgment affirms the outcome expected by the joint administrators and their legal advisers, Linklaters. Stephen Fletcher, partner at Linklaters, commented, "[t]he court has provided much needed clarity on a cornerstone of the UK regulatory regime protecting clients." "Whilst this decision is welcome, the breadth of the issues likely to be appealed will impact on the progress towards distribution that the joint administrators had been hoping to make," Mr. Fletcher added. Steven Pearson, joint administrator and partner at PricewaterhouseCoopers LLP, commented, "[t]he judgment confirms the way we have determined clients' entitlements to the client money we hold. We are keen to return client money as soon as possible and I hope that any appeal can be dealt with swiftly. I understand that the way in which LBIE determined entitlements to client money were market practice -- this judgment could have wider market consequences if other market participants need to reappraise whether further amounts now need to be segregated. At the handing down of the judgment on 15 December 2009, six respondents to the application sought and have been granted permission to appeal the judgment. Those respondents are Lehman Brothers Inc., Lehman Brothers Holdings Inc. and Lehman Brothers Finance AG (all of whom are affiliates of LBIE's), CRC Credit Fund, Limited (one of the representative respondents for unsegregated client money claimants), and Goldman Sachs GSIP Master Company (Ireland) Limited and Paragon Capital Management Fund Limited (two of the representative respondents for segregated client money claimants). If any or all of these respondents decide to appeal, they are required to file their appeal notice on or before 15 January 2010. If the judgment is appealed, the breadth of the issues that may be the subject of that appeal is so that the appeal is likely to impact on the Joint Administrators' progress towards making a distribution of client money. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: UK Sets March 18 as True Assets Claims Bar Date ---------------------------------------------------------------- On 15 December 2009, following an application of the Joint Administrators of Lehman Brothers International (Europe) (in administration), the High Court of England and Wales made a Bar Date Order in relation to claims to "Trust Assets." The granting of the Order satisfies one of the conditions to the Claims Resolution Agreement between LBIE and claimants to Trust Assets. The CRA is currently on offer to certain claimants to Trust Assets for their acceptance. If sufficient acceptances are obtained before the closing date of the offer (currently 29th December 2009) the CRA will become effective as between LBIE and the signatories. Steven Pearson, Joint Administrator and partner at PricewaterhouseCoopers LLP said: "The Bar Date Order marks an important milestone in the process of returning assets to customers. We remain on timetable to commence the systemic return of customer property to LBIE's customers under the Claims Resolution Agreement within Q1 2010. I would encourage all affected clients to sign up to the CRA to ensure they are able to participate in the Trust Asset distribution process." Assuming that the CRA does become effective, the Joint Administrators anticipate commencing distributions under it shortly after the Bar Date. The Bar Date is binding on all claimants to Trust Assets whether or not they are signatories to the CRA. The Order allows LBIE and the Joint Administrators to distribute assets held for clients and protects them from claims in respect of any breach of trust which arises in circumstances where LBIE distributes (or retains for itself pursuant to its legal rights) Trust Assets to clients and counterparties of LBIE after 19 March 2010 on the basis of the information then available to them. Trust Asset claimants have recently been provided with statements setting out an estimate of the assets LBIE holds on their behalf and all affected clients were invited to attend meetings in London and New York last week. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MANCHESTER CITY: Owner Converts GBP305 Million Debt Into Equity --------------------------------------------------------------- Roger Blitz at The Financial Times reports that Manchester City Football Club on Wednesday said that its Abu Dhabi owner Sheikh Mansour bin Zayed Al-Nahyan had converted his GBP305 million loans into equity. According to the FT, Manchester City, which lies fifth in the Premier League, said the club's aim was "to create a sustainable business in the future", and it was "now on a secure financial foundation". Sheikh Mansour has also bought an extra GBP90 million of shares, a move the club said underlined his long-term commitment, the FT notes. The FT says the sheik's loans-to-equity conversion is further indication of Uefa gaining the upper hand in its long-term campaign to coerce highly leveraged clubs, weighed down by soaring transfer fees and player wages, to inject realism into their finances and live within their means. The FT recalls Uefa agreed in September to adopt a "financial fair play" strategy, which will lead to concrete measures requiring clubs to balance their books and guidance on transfer fees and wage bills. The FT relates since the end of the financial period, Manchester City has spent about GBP120 million on new players, including Emmanuel Adebayor, Carlos Tevez and Kolo Toure. The club will also have a compensation bill following the sacking of manager Mark Hughes last month, the FT states. The net loss after amortization of player contracts and financing contracts nearly trebled to GBP92.6 million, the FT discloses. Manchester City Football Club -- http://www.mcfc.co.uk/-- is one of the oldest soccer teams in the UK Premier League. The club was founded in 1880 as St. Marks and changed its name to Ardwick before settling on Manchester City in 1894. Known to supporters as The Citizens, the team boasts two league championships and four FA Cups. Abu Dhabi United Group, an investment concern owned by the government of the United Arab Emirates, acquired the club in 2008 from Thaksin Shinawatra, formerly the prime minister of Thailand. Mr. Shinawatra had acquired control of Manchester City in 2007 after being ousted from Thailand in a coup d'etat. * UK: More Legal Firms to Face Insolvency This Year, Glithero Says ------------------------------------------------------------------ Debt Management Today reports that Richard Glithero, the head of insolvency at Manchester solicitors Pannone, has told the Manchester Evening News that a record number of legal firms in the North, as well as across the UK, are predicted to become insolvent this year. The report relates Mr. Glithero warned that smaller businesses will be most at risk of failing, as larger household names become more dominant in the sector. He has attributed this problem to the huge increase in fraud since the onset of the credit crunch, the report notes. He explained that during the years of loose credit, a number of smaller solicitors were found to be colluding with unscrupulous surveyors and buyers in order to commit fraud against lenders, the report recounts. Mr. Glithero told the paper "As a result, many banks and building societies believe smaller practices can't be relied upon to protect their interests and therefore do not want them on their panels for conveyancing work." Citing figures from the Solicitors Regulation Authority, the report says 98 legal firms folded in the second quarter of 2009, up 21% on the same period the year before. According to the report, Mr. Glithero said it would be likely to see a similar jump in 2010. =============== X X X X X X X X =============== * BOOK REVIEW: Taking America - How We Got from the First Hostile ----------------------------------------------------------------- Author: Jeff Madrick Publisher: BeardBooks Softcover: 310 pages Review by Henry Berry Taking America connotes the indiscriminate buying up of the nation's assets of large corporations by investment bankers, insider stock traders, arbitrageurs, and the like. This occurred in the mid-1970s, when low stock prices made many large corporations attractive as takeover targets. At the time, they were not ready for what was going to hit them. This was the business era when the term "hostile takeover" came into use. Ivan Boesky, Carl Icahn, and T. Boone Pickens became household names for their inconceivable, bold attempts to buy out corporations. In doing so, they would stand to make hundreds of millions of dollars as the stock of the acquired company rose. But in most cases, such a stock rise would come at the cost of breaking up the newly- acquired company by selling off its most prized and valuable operations and assets or by drastically reducing its work force to save on wage and benefits costs. In many ways, this wave of buyouts and mergers fundamentally changed the way corporations did business; and it changed the way corporations were seen by businesspersons and the public. Corporations came to be seen not mainly as businesses relating to a particular business sector or making a particular product or product line. Such considerations as operations and growth within a particular or closely-related sector, employee security, and long-term strategic planning were swept aside by the single-minded aim of using a corporation's cash and other assets as leverage to takeover vulnerable, and often unsuspecting, corporations for quick, huge profit. Running a corporation became like playing the stock market. Madrick's Taking America was originally published in 1987, just after this wave of takeovers and mergers waned. But it waned not from any restoration of rationality or temperance, but mainly from having succeeded so well. There were scarcely any big companies worth taking over left after the takeover frenzy, as it was described by many. Madrick follows this unprecedented, transformational takeover spree occurring over the decade of the mid 1970s to the mid 1980s mainly by following the activities of the key individuals driving it, and as much as possible getting into their thinking, the scheming, and the strategies. Most of the participants in the takeover movement who are referred to in this book were interviewed by the author. Most of the book's content is based on these interviews. Other recognizable names in the author's long listing of individuals he interviewed are Peter Drucker, Richard Cheney, Robert Rubin, and Felix Rohatyn. Looking back over this period, Madrick sees a takeover movement that lost touch with business's first principles. These principles take into consideration broad economic well-being for employees and the public, not quickly-gained riches for a few. Although Boesky and others were heavily fined or imprisoned for illegal conduct, their view of business and business activity was taken in by the business field. The "dot-com bubble" of the 1990's, when many young entrepreneurs in the field of computer technology tried to create businesses with the hope of soon being taken over by larger companies, is one instance of the legacy of this takeover era. The Enron approach to business is another; as are the business activities, particularly the financial legerdemain, of WestCom, Tyco, and Adelphia, to name a few. In Taking America, Madrick sheds much light on the origins of widespread problems in today's business world. ********* 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 * * *