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/raid1/www/Hosts/bankrupt/TCREUR_Public/100215.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 Monday, February 15, 2010, Vol. 11, No. 031 Headlines B E L G I U M EVADIX SA: Gets Court OK on Reorganization Plans for Three Units D E N M A R K CAPINORDIC BANK: Is Insolvent; Bankruptcy Proceedings Launched E S T O N I A KOMMEST AUTO: Declared Bankrupt; Has EEK203 Mil. in Liabilities F R A N C E BELVEDERE SA: Has Deal with Creditors to Launch Convertible Bond G E R M A N Y GENERAL MOTORS: German Gov't May Rebuff Opel State Aid Request WILHELM KARMANN: CIE Automotive Has Funds to Buy Roofing Unit WILHELM KARMANN: To Split Into Three Units, Administrator Says H U N G A R Y ALTALANOS KOZLEKEDESI: In Liquidation; HUF3.3BB Deposits Frozen I R E L A N D ANNADOM LIMITED: Creditors Meeting Set for February 26 ASHDALE FORMWORK: Creditors Meeting Set for February 22 ATLAS PERSONNEL: Creditors Meeting Set for February 25 AUTO GLASS: Creditors Meeting Set for February 22 BLACK SHORE: Court Protection for Four Companies Extended BRITRON LIMITED: Creditors Meeting Set for February 26 C&E VALUE: Creditors Meeting Set for February 25 COGNOTEC LTD: Receiver Wants to Set Aside Rights Transfer Deal GRAB & GO: Creditors Meeting Set for February 23 INDEPENDENT NEWS: Lebedev Takeover Talks Fall; To Miss Deadline JAZ ENTERTAINMENT: Creditors Meeting Set for February 26 LICIOUS BOUTIQUE: Creditors Meeting Set for February 22 O'CALLAGHAN BROTHERS: Creditors Meeting Set for February 22 SIMPSONS OFFICE: Creditors Meeting Set for February 26 WE CLEAN: Creditors Meeting Set for February 19 WILSON BUILDING: Creditors Meeting Set for February 23 N E T H E R L A N D S ABN AMRO: S&P Downgrades Junior Subordinated Debt Ratings to 'B' HAMLET I: Moody's Lifts Rating on EUR78 Mil. Class B Notes to 'B1' N O R W A Y NIO SECURITY: Releases Lock-Up for Converting Shareholders R U S S I A ALLIANCE OIL: Fitch Assigns 'B' Senior Unsecured Rating ALLIANCE OIL: S&P Assigns 'B+' Rating on Proposed Senior Notes S P A I N GRUPO CORPORATIVO: Fails to Get Approval to Refinance Debt UNION DE CREDITOS: S&P Takes Rating Actions on Various Tranches S W E D E N SAS AB: Moody's Downgrades Probability of Default Rating to 'Caa2' U N I T E D K I N G D O M BALFOUR HOMES: In Administration; Begbies Traynor On Board CO-OPERATIVE BANK: Moody's Lifts Jr. Sub. Debt Rating to 'Ba2' COVENTRY BUILDING: Moody's Cuts PIBS Rating to 'Ba2' From 'Ba1' CRU INVESTMENT: Shareholders, Creditors to Vote on Liquidation ELLIS MORGAN: In Liquidation; 28 Jobs Affected EUROPUBS LIMITED: High Court Orders Liquidation FRANCIS MCPEAKE: High Court Orders Liquidation HJ BERRY: In Administration; 85 Jobs at Risk ICICI BANK: Moody's Lifts Jr. Subordinated Debt Rating to 'Ba1' LONDON TOWN: May Be Put Into Pre-Pack Administration This Week MASTER PREFABRICATIONS: High Court Orders Liquidation MOVIE DOCK: High Court Orders Liquidation NATIONWIDE BUILDING: Moody's Cuts PIBS Rating to 'Ba2' From 'Ba1' OODLES LOVE: Creditors Meeting Set for February 23 PORTSMOUTH FOOTBALL: Vantis Probes Into Financial Status PRESBYTERIAN MUTUAL: Some Savers Not Entitled to GBP20MM Income QPODS FLATPACK: High Court Orders Liquidation QPODS UK: High Court Orders Liquidation SELHURST PARK: In Administration; PwC Appointed SKIPTON BUILDING: Moody's Cuts PIBS Rating to 'B1' From 'Ba3' SPENCER BYRNE: High Court Orders Liquidation X X X X X X X X * BOND PRICING: For the Week February 8 to February 12, 2010 ********* ============= B E L G I U M ============= EVADIX SA: Gets Court OK on Reorganization Plans for Three Units ---------------------------------------------------------------- Reuters, citing De Tijd, reports that the Commercial Court of Doornik has approved Evadix SA's reorganization plans for three of its subsidiaries: Evadix Etibel SA, Evadix Direct Marketing Services SA and Castermann Printing SA. Further details were not disclosed, Reuters notes. Citing Bloomberg News, the Troubled Company Reporter-Europe reported on Feb. 5, 2010, that a majority of Evadix's creditors voted in favor of reorganization plans that would cut the company's debt by 26%. Bloomberg disclosed Casterman Printing's reorganization plan won approval from 89% of creditors casting votes, while the plans of Evadix Direct Marketing Services and Evadix Etibel each got backing from 94% of creditors. Bloomberg said under the plans, creditors would recover almost 74% of their combined amounts owed according to the plans, reducing the total debt of the three units to about EUR12 million (US$16.6 million). As reported by the Troubled Company Reporter-Europe on Sept. 4, 2009, Bloomberg News said the commercial court in Tourna, Belgium, granted creditor protection to the company's three unprofitable units for six months. Evadix Groupe SA -- http://www.evadix.com/default.jsp-- is a Belgium-based provider of printing, direct marketing and logistics products and services for professionals. The Printing division offers digital pre-press, large-format digital transfer to film, offset printing on rotary presses and on sheet-fed presses and binding services. The Direct Marketing division provides such services as computer processing and data management, customized laser and inkjet printing, preparation for mailing and film wrapping. The Logistics division supplies various services, such as warehouse management, order preparation, flow management, as well as e-business solutions. As of December 31, 2008, Evadix SA had a number of subsidiaries, including EVADIX DIRECT MARKETING, EVADIX.NET, EVADIX ETIBEL, EVADIX BILOG, CASTERMAN PRINTING and EVADIX FRANCE, among others. ============= D E N M A R K ============= CAPINORDIC BANK: Is Insolvent; Bankruptcy Proceedings Launched -------------------------------------------------------------- John Acher at Reuters reports that Capinordic A/S said on Thursday that the Danish Financial Supervisory Authority has filed a bankruptcy petition against its subsidiary Capinordic Bank A/S under section 234 of the Danish Financial Business Act. Reuters relates the company said in a statement Capinordic Bank on Wednesday filed for a suspension of payments". The company, as cited by Reuters, said "Capinordic Bank is considered to be insolvent". According to Reuters, the company said the bankruptcy division of the Maritime and Commercial Court has subsequently commenced bankruptcy proceedings against Capinordic Bank. Reuters notes the company added that it expected the bankruptcy estate and the state company formed to administer failed banks, Finansiel Stabilitet A/S, to agree on the transfer of Capinordic Bank assets and liabilities or some of them to Finansiel Stabilitet. Deposit Guarantee Gelu Sulugiuc at Bloomberg News reports that Financial Stability agency said in an e-mail Friday Capinordic A/S account holders at Capinordic Bank's Swedish branch are not covered by the full deposit guarantee Denmark has bestowed as part of its first bank aid package. According to Bloomberg, the agency said the Swedish deposits will instead be covered up to EUR50,000 provided through the Danish guarantee fund for depositors and investors. Based in Kobenhavn, Denmark, Capinordic Bank -- http://www.capinordicbank.dk/-- provides investment brokerage services. As of February 23, 2006, Capinordic Bank is a subsidiary of Capinordic A/S. ============= E S T O N I A ============= KOMMEST AUTO: Declared Bankrupt; Has EEK203 Mil. in Liabilities --------------------------------------------------------------- Toomas Hobemagi at Baltic Business News reports that the Viru County Court on Wednesday declared Kommest Auto bankrupt. The temporary bankruptcy trustee said Kommest Auto has about EEK203 million in liabilities, but only about EEK0.15 million worth of assets, BBN says citing ERR. BBN relates the court nominated Martin Krupp as bankruptcy trustee and scheduled the first meeting of creditors to March 11. Kommest Auto is a Peugeot dealership owned by Toomas Ruutmann. =========== F R A N C E =========== BELVEDERE SA: Has Deal with Creditors to Launch Convertible Bond ---------------------------------------------------------------- Sudip Kar-Gupta at Reuters reports that Belvedere SA said on Friday it had agreed with its creditors to launch a convertible bond. According to Reuters, the bonds would be worth EUR123.75 each, would have a maturity of five years, carry a coupon of 1% and will be convertible into one Belvedere share per bond. As reported by the Troubled Company Reporter-Europe, Bloomberg News said Belvedere was granted protection from creditors in July 2008 after violating the terms of its notes by repurchasing more of its stock than allowed. Belvedere SA -- http://www.belvedere.fr/-- is a France-based company engaged in the production and distribution of beverages. The Company's range of products includes vodka and spirits, wines, and other beverages, under such brands as Sobieski, William Peel, Marie Brizard, Danzka and others. Belvedere SA operates through its subsidiaries, including Belvedere Czeska, Belvedere Scandinavia, Belvedere Baltic, Belvedere Capital Management, Sobieski SARL and Sobieski USA, among others. It is present in a number of countries, such as Poland, Lithuania, Bulgaria, Denmark, France, Spain, Russia, Ukraine, the United States and others. In addition, the Company holds a minority stake in Abbaye de Talloires, involved in the hotel and wellness centre ============= G E R M A N Y ============= GENERAL MOTORS: German Gov't May Rebuff Opel State Aid Request -------------------------------------------------------------- Cornelius Rahn at Bloomberg News reports that Spiegel, citing an internal assessment from the Economy Ministry, said General Motors Co.'s request for state aid to reorganize the Adam Opel GmbH division may be rebuffed by the German government. According to Bloomberg, the magazine cited the document as saying the plan's "sustainability is questionable" and the outlined workforce reductions are "difficult to comprehend". Bloomberg notes Spiegel said the ministry is also concerned that German state funds may flow to the U.S., such as through licensing fees Opel must pay to GM. Viability Plan As reported by the Troubled Company Reporter-Europe on Feb. 11, 2010, Opel/Vauxhall Chief Executive Officer Nick Reilly on Tuesday said a five-year EUR11 billion "Plan for the Future" that will reinvigorate 80% of Opel/Vauxhall carlines and place a strong emphasis on alternative propulsions. At the same time, Mr. Reilly said the external auditor Warth & Klein judged the plan sound and viable. With this assessment, the company on Tuesday morning formally applied for loans or loan guarantees from the German government. "We are extremely pleased that we now have independent confirmation that our plan is sound and will place Opel and Vauxhall on the road to sustainable, long-term profitability," Mr. Reilly said. "We now have a road map, we know where we are headed and we are working with all our partners so we can switch into high gear for a successful future." The viability plan envisions that 80% of the Opel/Vauxhall carlines will be at an age of three years or less by 2012. This includes eight major launches in 2010 alone -- such as Meriva, Corsa, Movano and Astra Sports Tourer -- and another four in 2011, most notably the extended-range electric vehicle Ampera, an industry-first in Europe. In addition, Opel/Vauxhall will spend EUR1 billion in innovative and fuel-efficient powertrain technology as it introduces a range of new green products. This includes: -- Launching an extended-range electric vehicle in addition to the Ampera; -- Introducing pure battery-electric vehicles in smaller-size segments; and -- Expanding LPG and CNG applications, start/stop technology and right-sizing of engines. In addition, the company has accelerated efforts to introduce an entry in the sub-Corsa segment and to make a strong push in the light commercial vehicle business. Several studies are under way to look at possible profitable export programs in the Middle East and Asia-Pacific. "Opel/Vauxhall has a clear vision: to be a leading European manufacturer of high quality, desirable automotive products, based on German engineering, driven by a united team of professionals and respected around the world. This vision will be realized by offering an exciting and expanded product portfolio based on a strategic push into alternative propulsion technology," said Mr. Reilly. To support this vision, the company has sharpened and refined its brand DNA and product pillars, and is embarking on a program that ensures this DNA is engrained in every future Opel/Vauxhall product. Future products will be developed in Russelsheim at the International Technical Development Center. If they are based on a vehicle architecture developed elsewhere, they will return to Ruesselsheim early to ensure they deliver on the Opel/Vauxhall brand promise. EUR11 Billion Investment Over Next Five Years The viability plan requires long-term funding of EUR3.3 billion to run the business during the transformation. In total, the company plans to invest approximately EUR11 billion over the next five years. As part of the EUR3.3 billion funding requirements, parent company GM has already injected EUR600 million into the new Opel/Vauxhall business. In addition, GM provided EUR650 million in advanced payments in January to ensure appropriate cash positions. The company will continue to work with European governments to secure funding of approximately EUR2.7 billion through loans or loan guarantees. Discussions with employee representatives about the overall plan continue both on European and national levels. "We will build a European company that is profitable, self- sustainable and fit for the long-term," Mr. Reilly said. "This keeps a manufacturing base in Europe. It is good for Europe, good for our employees and good for our customers. We therefore trust that the plan will be supported by our employees." Major Restructuring to Include 20% Reduction In Capacity The business plan foresees Opel/Vauxhall will break even by 2011 and be profitable by 2012. It is predicated on economic forecasts that 13.4 million cars will be sold in Western Europe this year -- a reduction of more than 20% from 2007. Opel/Vauxhall does not believe the market will come back to the levels seen earlier in this century for quite some time. To adjust to the current and forecasted market environment, Opel/Vauxhall will reduce its capacity by approximately 20%. This requires a job level reduction of approximately 8,300. That reduction will be spread out across most of Europe and includes 1,300 employees in sales and administration and 7,000 jobs in manufacturing. This includes the intent to close the Opel production facility in Antwerp, Belgium, as previously announced. Once the capacity reduction is implemented, the company is expected to run at approximately 112% of its capacity on a two- shift basis and 87% on a three-shift basis and therefore has -- along with other potential measures -- sufficient upside potential once the market starts to recover. The company has eliminated the former GM Europe management structure in Zurich, Switzerland, and is now managed from the Opel brand headquarters in Ruesselsheim, Germany. Market Share Maintained Due to Strong New Vehicle Launches According to the Company, Opel/Vauxhall started 2010 with confidence. The company maintained a 2009 market share of 7.59% in Western Europe in spite of tough price competition. Opel increased its market share and regained the number two position in its German home market, while Vauxhall remained number two in the United Kingdom. Sales of the Opel Insignia -- European Car of the Year 2009 -- jumped to 160,000 in 2009. In Europe, the Opel Insignia is the leader in the medium sedan segment. The new Astra won the prestigious European Golden Steering Wheel award (Goldenes Lenkrad) and several other awards even prior to its market introduction. More than 75,000 orders for the five-door version have already been placed. Recently, the DEKRA vehicle monitoring organization reported Corsa had the lowest breakdown rate of all cars on the market in Germany. Despite a 16% reduction in volume, the company still was able to reduce Hours per Vehicle by 4%, an indication of its manufacturing excellence. Opel/Vauxhall for the first time reported less than 20 HPV -- an industry milestone only achieved by two other companies. "[Tues]day's announcement marks the beginning of a new era for Opel/Vauxhall. It is the biggest overhaul in the company's recent history," said Mr. Reilly. "We now have all the necessary ingredients for a successful future in place: a motivated workforce, a new and accountable company culture, a product offensive based on innovative and highly fuel- efficient technology, a competitive cost structure based on conservative volume assumptions, a dedicated management team operating out of our Ruesselsheim headquarters, and the support from so many stakeholders. Now it is up to us to prove that we can do it. I am confident that we will," he added. 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) WILHELM KARMANN: CIE Automotive Has Funds to Buy Roofing Unit ------------------------------------------------------------- Cornelius Rahn at Bloomberg News, citing Handelsblatt, reports that CIE Automotive SA has fundamentally secured funding to acquire insolvent Wilhelm Karmann GmbH's roofing division. According to Bloomberg, the newspaper said the roof-making unit will cost a two-digit million-euro amount plus an investment in the business of the same size. Bloomberg sys the company is also being pursued by Canada's Magna International Inc. Citing Reuters, the Troubled Company Reporter-Europe said Jan. 4, 2010, that other bidders include Nordwind Capital and Vorwerk Autotec. As reported by the Troubled Company Reporter-Europe, Bloomberg News said Karmann filed for bankruptcy protection in April as the worst slump in automotive markets for decades left the manufacturer unable to pay workers. Headquartered in Osnabrueck, Wilhelm Karmann GmbH -- http://www.karmann.com/-- is the largest independent motor vehicle manufacturing company in Germany. WILHELM KARMANN: To Split Into Three Units, Administrator Says -------------------------------------------------------------- Mariajose Vera at Bloomberg News reports that Wilhelm Karmann GmbH's bankruptcy administrator agreed with the company's works council to split the insolvent carmaker into three independent units under the umbrella of Wilhelm Karmann GmbH i.I. as of Feb. 13, 2010. According to Bloomberg, the administrator said in an e-mailed statement Thursday the split will make it simpler for investors to take over parts of the carmaker. Citing The Financial Times, the Troubled Company Reporter-Europe reported on Nov. 24, 2009, that Volkswagen AG would buy land, machinery and equipment from Karmann. The FT disclosed VW plans to establish a new Volkswagen car manufacturing subsidiary in Osnabrueck, Karmann's hometown, to launch a new niche vehicle project there in 2011. On Nov. 3, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that VW was considering buying assets of Karmann instead of a complete takeover. As reported by the Troubled Company Reporter-Europe, Bloomberg News said Karmann filed for bankruptcy protection in April as the worst slump in automotive markets for decades left the manufacturer unable to pay workers. Headquartered in Osnabrueck, Wilhelm Karmann GmbH -- http://www.karmann.com/-- is the largest independent motor vehicle manufacturing company in Germany. ============= H U N G A R Y ============= ALTALANOS KOZLEKEDESI: In Liquidation; HUF3.3BB Deposits Frozen --------------------------------------------------------------- MTI-Econews reports that about HUF3.3 billion in deposits has been frozen at the loan cooperative Altalanos Kozlekedesi Hitelszovetkezet. According to MTI, Hungary's Deposit Protection Fund (OBA) said that it would start paying compensation to depositors -- stakeholders in the cooperative -- within 20 workdays. MTI relates financial market regulator PSZAF said on Thursday that it had withdrawn AKH's operating license and initiated a liquidation procedure. MTI recalls the PSZAF sent commissioners to oversee AKH's operations in January because the cooperative's net assets fell below registered capital. AKH, MTI says, had HUF3.3 billion of total assets, including HUF272 million of net assets, loans of HUF2.6 billion and deposits of HUF 2.9 billion at the end of 2008. The cooperative posted a net loss of HUF26 million in 2008, MTI recounts. MTI notes OBA said on its Web site members of the AKH are liable to compensation up to HUF13.57 million, the current forint equivalent of EUR50,000 per person. AKH has got 800 depositors with their deposits averaging HUF4.125 million, MTI discloses. OBA managing director told MTI the deposit protection fund has HUF85 billion in assets available for compensation. Mr. Peter Szekacs, as cited by MTI, said OBA shortened the deadline for paying out on the frozen deposits to 20 working days at the start of 2010, one year before an EU directive makes it mandatory. The part of some deposits not insured by OBA, if any, will be redeemed by the state according to an Oct, 2008 government declaration, MTI states. "The intention is still there," MTI quoted Finance Ministry spokesman Ferenc Pichler as saying on Friday. "While it is time to think it over for how long the validity of this declaration warranted by the crises should be maintained." ============= I R E L A N D ============= ANNADOM LIMITED: Creditors Meeting Set for February 26 ------------------------------------------------------ A meeting of creditors of Annadom Limited will take place at 11:00 a.m. on February 26, 2010, at: The Georgian Business Centre 20 Lower Baggot Street Dublin 2 Ireland The registered address of the company is at: 1 Lower Rathmines Road Dublin 6 Ireland ASHDALE FORMWORK: Creditors Meeting Set for February 22 ------------------------------------------------------- A meeting of creditors of Ashdale Formwork Limited will take place at 10:00 a.m. on February 22, 2010, at: Hudson Bay Hotel Athlone Co Westmeath Ireland The registered address of the company is at: Templemoyle Culdaff Ireland ATLAS PERSONNEL: Creditors Meeting Set for February 25 ------------------------------------------------------ A meeting of creditors of Atlas Personnel Group Limited will take place at noon on February 25, 2010, at: Bewleys Hotel Merrion Road Ballsbridge Dublin 4 Ireland David Van Dessel of Kavanagh Fennell is the company nominee. The registered address of the company is at: 14/15 Andrew Street Dublin 2 Ireland AUTO GLASS: Creditors Meeting Set for February 22 ------------------------------------------------- A meeting of creditors of Auto Glass Replacements Limited will take place at 10:00 a.m. on February 22, 2010, at: The Harcourt Hotel Harcourt Street Dublin 2 Ireland The registered address of the company is at: 12 Pembroke Row Dublin 2 Ireland BLACK SHORE: Court Protection for Four Companies Extended --------------------------------------------------------- Mary Carolan at The Irish Times reports that the High Court's Mr. Justice Brian McGovern has continued court protection for four companies in Galway businessman John Sweeney's Black Shore group. The companies are Sweeney Oil (Retail) Ltd; Sweeney Oil (Moycullen) Ltd; Sweeney Oil Service Stations Ltd and Slyne Properties Ltd., the report discloses. According to the report, Judge McGovern said one of the factors which persuaded him towards examinership rather than receivership was that the Courtyard Marriott was "bucking the trend" in performing quite well, with Failte Ireland expressing the view this was due to the management style of Mr. Sweeney and his employees. The report notes the judge said this would change in a receivership where Mr. Sweeney would lose effective control. Anglo Irish Bank, owed more than EUR20 million arising from inter- company guarantees involving three of the companies, had strongly opposed examinership on grounds including its "irretrievable" loss of confidence in Mr. Sweeney, the report notes. The bank has said it intends to appoint a receiver over the companies as soon as it can, the report recounts. Court protection applies for a maximum of 100 days, the report states. The report relates Judge McGovern concluded at this stage, he was satisfied there was a reasonable prospect of survival of the four companies and he should exercise his discretion in favor of confirming the appointment of Michael McAteer as examiner of the four companies. IrelandOn-Line reports Mr. Sweeney has said 350 jobs have been secured by the High Court's decision to appoint an examiner to four of his companies. As reported by the Troubled Company Reporter-Europe on Feb. 12, 2010, The Irish Times said Judge McGovern has appointed Jim Luby as liquidator to Black Shore Holdings. The Irish Times disclosed the liquidator to BSH was sought on Wednesday by Paul Sreenan SC, for Esso Ireland, which is owed EUR12.4 million, and the application was not opposed by BSH. According to The Irish Times, a receiver was also appointed to BSH Wednesday by Anglo. Blackshore Holdings Ltd. comprises Mr. Sweeney's oil, property and hotel interests. BRITRON LIMITED: Creditors Meeting Set for February 26 ------------------------------------------------------ A meeting of creditors of Britron Limited will take place at 3:30 p.m. on February 26, 2010, at: The Hawthorn Hotel Main Street Swords Co Dublin Ireland The registered address of the company is at: No 8 The Avenue Louisa Valley Leixlip Co Kildare Ireland C&E VALUE: Creditors Meeting Set for February 25 ------------------------------------------------ A meeting of creditors of C&E Value Store Limited will take place at 10:00 a.m. on February 25, 2010, at: The Regency Hotel Swords Road Drumcondra Dublin 9 Ireland The registered address of the company is at: 81 The Grove Inse Bay Laytown Co Meath Ireland COGNOTEC LTD: Receiver Wants to Set Aside Rights Transfer Deal -------------------------------------------------------------- Mary Carolan at The Irish Times reports that Kieran Wallace -- which was appointed by Barclays Bank as receiver over Cognotec Ltd. -- is seeking a court order setting aside an agreement allegedly transferring ownership of the company's software rights to a Gibraltar-based company. According to the report, Mr. Wallace wants to set aside a July 2008 agreement allegedly providing the ownership of intellectual property rights of Cognotec be transferred to Syndicated Capital Investments Ltd. from that date. The report says SCI, which is in administration, had invested more than US$2 million (EUR1.46 million) in Cognotec, but Barclays claims it has a priority charge over the assets, including IP rights, of Cognotec, and SCI has no entitlement to frustrate the receiver's plans to sell those assets to an undisclosed buyer. The report notes Mr. Justice Kelly said he was satisfied the case was urgent, as the dispute over the agreement was holding up the planned sale. The judge granted an application by Brian O'Moore SC, for Mr. Wallace, to admit proceedings against SCI to the Commercial Court, the report discloses. The report relates in an affidavit, Mr. Wallace said Cognotec Ltd. is part of the Cognotec group and holds the IP rights in software supplied to the foreign exchange industry. The report recalls from 2007, the Cognotec group was unable to adhere to a loan repayment schedule agreed with Barclays, and the bank demanded repayment. When no payment was received, it appointed Mr. Wallace receiver and he began efforts to sell the business, the report recounts. Cognotec is a Dublin-based software company. It produces financial automated FX trading solutions. GRAB & GO: Creditors Meeting Set for February 23 ------------------------------------------------ A meeting of creditors of Grab & Go Limited will take place at 10:15 a.m. on February 23, 2010, at: The Crown Plaza Hotel Blanchardstown Centre Dublin 15 Ireland The registered address of the company is at: Damastown Way Damastown Business Park Dublin 15 Ireland INDEPENDENT NEWS: Lebedev Takeover Talks Fall; To Miss Deadline --------------------------------------------------------------- Salamander Davoudi at The Financial Times reports that talks between Alexander Lebedev, the owner of London's Evening Standard and a former lieutenant-colonel in the KGB, and Independent News & Media plc over his proposed takeover of the Independent titles have stalled and today's deadline will be missed. According to the FT, negotiations, which have been on and off for over 12 months, were due to conclude today, Feb. 15, when Mr. Lebedev's non-binding period of exclusivity with INM expires. The FT says the talks have not progressed amid stumbling blocks understood to include the paper's printing contract with Trinity Mirror, which would cost over GBP15 million to break, pension deficit issues and redundancy costs. Rupert Neate at The Telegraph reports this means INM will be able to enter talks with other potential buyers. The Daily Telegraph notes a sale is now expected before INM's full-year results in March. The Daily Telegraph says it is understood that INM's EUR1.3 billion (GBP1.2 billion) debt has been the main stumbling block. The Daily Telegraph relates analysts have said that Mr. Lebedev could pay a nominal sum if he agrees to take on some of INM's debts. As reported by the Troubled Company Reporter-Europe on Dec. 21, 2009, The Financial Times said a successful deal on the Independent titles would result in cost savings because INM announced it was moving its UK newspapers into offices at DMGT's London headquarters last year in an effort to save GBP2 million to GBP3 million in costs. The Independent group had already undergone several waves of job cuts, the FT noted. Independent was widely reported earlier in 2009 to be suffering losses of more than GBP10 million a year, the FT disclosed. Citing the FT, the Troubled Company Reporter-Europe on Nov. 12, 2009, reported INM secured approval of a proposed debt-for-equity swap refinancing from bondholders. The FT disclosed the plan involves the exchange of EUR123 million (US$184 million, GBP110 million) of bonds for a 46% stake in the new company. According to the FT, under the plan approved by bondholders, existing IN&M shareholders would be diluted to around 52%. About Independent News & Media Headquartered in Dublin, Ireland, Independent News & Media PLC (ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and publishing of metropolitan, national, provincial and regional newspapers in Australia, India, Ireland, New Zealand, South Africa and the United Kingdom. It also has radio operations in Australia and New Zealand, and outdoor advertising operations in Australia, New Zealand, South-East Asia and across Africa. The Company also has online operations across each of its principal markets. The Company has three business segments: printing, publishing, online and distribution of newspapers and magazines and commercial printing; radio, and outdoor advertising. INM publishes over 200 newspaper and magazine titles, delivering a combined weekly circulation of over 32 million copies with a weekly audience of over 100 million consumers. In March 2008, it acquired The Sligo Champion. During the year ended December 31, 2007, the Company acquired the remaining 50% interest in Toowoomba Newspapers Pty Ltd. JAZ ENTERTAINMENT: Creditors Meeting Set for February 26 -------------------------------------------------------- A meeting of creditors of Jaz Entertainment Limited will take place at 4:00 p.m. on February 26, 2010, at: The Hawthorn Hotel Main Street Swords Co Dublin Ireland The registered address of the company is at: 123 Palmerstown Woods Clondalkin Dublin 22 Ireland LICIOUS BOUTIQUE: Creditors Meeting Set for February 22 ------------------------------------------------------- A meeting of creditors of Licious Boutique Limited will take place at 10:00 a.m. on February 22, 2010, at: Annaly House Church Street Longford Co Longford Ireland The registered address of the company is at: Dublin Street Longford Ireland O'CALLAGHAN BROTHERS: Creditors Meeting Set for February 22 ----------------------------------------------------------- A meeting of creditors of O'Callaghan Brothers Killarney Limited will take place at 10:30 a.m. on February 22, 2010, at: The Malton Hotel Killarney Co Kerry Ireland The registered address of the company is at: Woodlands Park Road Killarney Co Kerry Ireland SIMPSONS OFFICE: Creditors Meeting Set for February 26 ------------------------------------------------------ A meeting of creditors of Simpsons Office & Print Limited will take place at 4:30 p.m. on February 26, 2010, at: The Hawthorn Hotel Main Street Swords Co Dublin Ireland The registered address of the company is at: Rivermall Swords Co Dublin Ireland WE CLEAN: Creditors Meeting Set for February 19 ----------------------------------------------- A meeting of creditors of We Clean Limited will take place at 9:00 a.m. on February 19, 2010, at: The Regency Hotel Swords Road Whitehall Dublin 9 Ireland The registered address of the company is at: We Clean House The Bay Mulhuddart Dublin 15 Ireland WILSON BUILDING: Creditors Meeting Set for February 23 ------------------------------------------------------ A meeting of creditors of Wilson Building Contractors Limited will take place at 1:30 p.m. on February 23, 2010, at: Radisson Blu Hotel Cork Airport Ireland The registered address of the company is at: Ballylegan Glanworth Co Cork Ireland ===================== N E T H E R L A N D S ===================== ABN AMRO: S&P Downgrades Junior Subordinated Debt Ratings to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its junior subordinated debt ratings on GBP750 million in Upper Tier 2 and EUR1 billion in Tier 1 securities that ABN AMRO Bank N.V. issued to 'B' from 'BB'. At the same time, S&P removed the issues from CreditWatch, where they were placed with negative implications on Jan. 7, 2010. This rating action does not affect the counterparty credit ratings on ABN AMRO Bank N.V. The downgrade on the hybrid instruments follows the EC's announcement on Feb. 8, 2010, that it temporarily approved, as urgent rescue aid, The Netherlands' additional recapitalization package for ABN AMRO Bank N.V. and Fortis Bank (Nederland). The EC also stated that it has broadened its investigation into possible state aid, which it opened in April 2009 against FBN, to include the additional recapitalization measures for ABN AMRO and FBN. "The 'B' ratings reflect S&P's view of elevated risk of deferral of coupon payment on ABN AMRO's hybrid instruments in the coming two years, now that the EC has widened its investigation into state aid to include ABN AMRO as well, in combination with S&P's expectation of poor earnings generation for the bank during this period," said Standard & Poor's credit analyst Elisabeth Grandin. S&P bases its rating action on its understanding of the EC's announcement on Oct. 8, 2009, that banks under investigation should refrain from making payments that could reduce their capitalization, which includes coupons on hybrid instruments. The rating action takes into account the probability, but not the certainty, that the EC investigation could conclude that the recapitalization package represents competitive distortion and require "burden-sharing" (or help to offset the cost of government bailouts) from hybrid debt holders. In addition, S&P consider that the bank's weak profitability and the terms and conditions of both instruments make them vulnerable to regulatory pressure for suspension in the two coming years. S&P takes note that the EC announcement stressed that the opening of the investigation "does not in any way prejudge the outcome of the procedure," and that its preliminary assessment found that the recapitalization measures "seem necessary" to allow the separation of the Dutch assets of ABN AMRO and subsequent merger with FBN. Neither the EC nor the bank made any specific comment about hybrid debt. In addition, ABN AMRO Holding N.V. paid a dividend on Feb. 5, 2010. As a result, S&P's 'B' rating on the Upper Tier 2 instrument factors in its expectation that the next coupon due on Feb. 17, 2010, will be paid on time. S&P understands that coupon payment for the EUR1 billion Tier 1 instrument is optional, but that the instrument has an alternative coupon mechanism. For the GBP750 million Upper Tier 2, S&P understands that the coupon is optional if the issuer's holding company (currently ABN AMRO Holding N.V.) does not distribute a dividend in the 12 months preceding coupon payment. S&P note that ABN AMRO Holding's board resolved to make another dividend payment immediately before legal separation. Nevertheless, S&P's current view is that ABN AMRO will have little chance to be profit-making in 2010 and that its holding may not be able to distribute dividends in 2011 and possibly in 2012 because of substantial integration costs and still-difficult economic conditions that are weighing on underlying profitability. HAMLET I: Moody's Lifts Rating on EUR78 Mil. Class B Notes to 'B1' ------------------------------------------------------------------ Moody's Investors Service has taken these rating actions on notes issued by Hamlet I Leveraged Loan Fund B.V. -- EUR222M Class A Senior Secured Floating Rate Notes due 2020, Upgraded to Aa2; previously on Aug. 10, 2009 Downgraded to A2 -- EUR78M Class B Subordinated Notes due 2020, Upgraded to B1; previously on Aug. 10, 2009 Downgraded to B3 This transaction is a managed cash leveraged loan collateralized loan obligation with exposure to 100% secured loans. It is noteworthy that, in this transaction, no interest payments can be distributed to the rated subordinated notes during the reinvestment period (which ends on May 15, 2010). Instead, all residual interest is used to acquire additional collateral debt obligations during the reinvestment period, which supports the collateralization of this transaction and has facilitated the accumulation of par above the target level (currently EUR299.9 million of performing assets par plus cash as compare to EUR293.3 million target par). The actions reflect the impact of the correction of an inaccurate numerical input that was used with respect to the recovery rate applied to performing assets during the last rating action on August 10, 2009. Had this not occurred, the ratings of the Hamlet I notes would likely have been higher at that time as the recovery rate that was applied to performing assets should have been approximately 20% higher. Since the August rating action, although there has been about EUR6 million lost in par due to the defaulted securities, Moody's noted that the performance of the underlying portfolio has been generally stable. This is observed through the average rating as measured through the portfolio weighted average rating factor 'WARF' (currently 2890), the proportion of securities from issuers rated Caa1 and below (currently 16.12% of the portfolio), the amount of defaulted securities (currently 5.58% of the portfolio) and the weighted average spread 'WAS' (currently 2.81% as compare to the covenant level at 2.25%). These measures were taken from the recent trustee reported dated January 19, 2010. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality. The rating of the class B notes addresses the ultimate repayment of the Rated Balance in respect of such notes on or before the legal maturity (in 2020), where the "Rated Balance" is equal, at any time, to the principal amount of such notes on the issue date (EUR 78m) minus the aggregate of all payments made from the issue date to such date, either through interest or principal payments. It is not an opinion about the ability of the issuer to pay interest. The rating actions incorporate Moody's revised assumptions with respect to default probability and the calculation of the diversity score as described in the press release dated February 4, 2009, titled "Moody's updates key assumptions for rating CLOs." These revised assumptions have been applied to all corporate credits in the underlying portfolio, the revised assumptions for the treatment of ratings on "Review for Possible Downgrade", "Review for Possible Upgrade", or with a "Negative Outlook" being applied to those corporate credits that are publicly rated. Moody's also notes that a material proportion of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's credit estimates. As credit estimates do not carry credit indicators such as ratings reviews and outlooks, a stress of a quarter notch-equivalent assumed downgrade was applied to each of these estimates. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, and the collateral manager's track record. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. =========== N O R W A Y =========== NIO SECURITY: Releases Lock-Up for Converting Shareholders ---------------------------------------------------------- In connection with the refinancing of Nio Security, Inc. in November 2009, the lenders under the NOK20 million short term loan agreement and other key creditors accepted to convert debt into a total of 14,371,558 new shares in Nio. The lenders and creditors agreed to a lock-up, where each agreed not to dispose of any shares for a period of 90 days from the date of listing of the new shares. The board of directors of Nio has resolved to release the lock-up for the converting shareholders effective as of Friday, February 12. Nio Security, Inc., formerly Dynapel Systems, Inc., -- http://www.niosec.com/-- is a company incorporated in the United States, and listed on the Oslo Stock Exchange. It is active within the digital surveillance and automation solutions for the security industry. Nio Security's products are assembled in the United States and Germany, and sold to commercial as well as military and governmental users worldwide. The Company's products are divided into five main groups: video analytics technology, pan/tilt/zoom (PTZ) cameras, digital video recorder (DVR) peripherals, digital video recorders (DVR) and software. =========== R U S S I A =========== ALLIANCE OIL: Fitch Assigns 'B' Senior Unsecured Rating ------------------------------------------------------- Fitch Ratings has assigned Alliance Oil Company Ltd.'s upcoming eurobond issue an expected senior unsecured foreign currency rating of 'B' and a Recovery Rating of 'RR4'. The issue amount of the bond will be disclosed at a later date. The final rating is contingent upon the receipt of final documents conforming to information already received. Senior unsecured credit holders are not viewed by Fitch as being negatively impacted by either the lack of an upstream guarantee by the refining operating company to the holding company, or by a pledge of the refining company's assets to ring-fenced secured lenders. Fitch believes sufficient assets are in place elsewhere in the Group to achieve average recovery of principal in the event of default. These factors support the assignment of the 'RR4' Recovery Rating. Fitch assigned Alliance Oil Long-term foreign and local currency Issuer Default Ratings of 'B', Short-term foreign and local currency IDRs of 'B' and a National Long-term rating of 'BBB(rus)' on February 10, 2010. Alliance Oil is one of Russia's second tier integrated oil companies producing approximately 44,000 barrels of oil per day in 2009 primarily in the Volga Urals with a growing presence in Timano-Pechora. The company also has a refining capacity of 70,000 barrels per day at its Khabarovsk refinery located in Russia's Far East. ALLIANCE OIL: S&P Assigns 'B+' Rating on Proposed Senior Notes -------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B+' debt rating to the proposed senior unsecured notes to be issued by Russia-based oil company Alliance Oil Company Ltd. (long-term corporate credit rating B+/Stable/--; Russia national scale rating ruA+). S&P's recovery rating on the proposed notes is '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. S&P's recovery analysis assumes about US$500 million issuance under the notes. The ratings are based on preliminary information and are subject to S&P's satisfactory review of final documentation. In the event of any changes to the amount or terms of the notes, the recovery and issue ratings might be subject to further review. Recovery Analysis The recovery prospects for the proposed notes are limited by S&P's view of enforceability of guarantees in Russia, its distressed valuation (in which S&P has carved out the refinery business, which S&P believes will not be available to proposed noteholders), and overall volatility in the oil exploration and refining operations. The proposed notes benefit from an extensive guarantee package from material subsidiaries, which represent about 75% of the group's assets and revenues. At the same time, the newly approved loan from Vnesheconombank (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2) benefits from asset security as well as guarantees from the refinery businesses. For the purposes of its analysis S&P has valued the business on a going-concern basis. S&P understands from the draft terms that the VEB loan is not expected to have claims over the oil field business and accordingly that the proposed notes would have the senior-most claim over the oil fields, which S&P believes would give sufficient value to proposed noteholders to provide recoveries of 30%-50%, corresponding to a recovery rating of '4'. Although S&P assumes that the noteholders would have a residual equity claim in the refinery business, S&P does not assume any recovery value from this source. S&P's recovery rating also assumes that the proposed notes will be better placed in the capital structure than Alliance's convertible notes due 2014 because the proposed notes will have guarantees from the group's material subsidiaries. For its default scenario, S&P has assumed that a period of low commodity prices would drive Alliance into default. S&P also factors in to its default scenario its view of Alliance's limited flexibility to reduce operating costs and a further exacerbation from expected delays to the group's two large-scale growth projects, which Alliance plans to execute at the same time. S&P assumes that these projects entail project risks, giving rise to substantial negative free operating cash flow through 2010-2012, leading to a default by 2013-2014, when, in S&P's scenario, the group would have insufficient liquidity as a result of increasing capital expenditure and delays in the projects. Ratings List New Rating Alliance Oil Company Ltd. Senior Unsecured Proposed bonds B+ Recovery Rating 4 ========= S P A I N ========= GRUPO CORPORATIVO: Fails to Get Approval to Refinance Debt ---------------------------------------------------------- Grupo Corporativo Ono SA failed to get the approval of its lenders to refinance EUR1.8 billion (US$2.4 billion) of debt within last week's deadline, Paul Tobin and Esteban Duarte at Bloomberg News report, citing three people familiar with the talks. According to Bloomberg, the people, who declined to be identified because the matter is private, said Ono will extend the negotiations into this week to try and persuade lenders providing 80% of the debt to agree to the plan. Bloomberg recalls the company said in a statement on Jan. 13 it is asking banks to extend the first repayments on the loan until 2013, and to relax terms on the debt. Ono was trying to get approval for the changes to the loan terms by the "week of Feb. 8," Bloomberg says citing last month's statement. Ono said last month the company's shareholders, including buyout firms Thomas H. Lee Partners LP and Providence Equity Partners Inc., will provide as much as EUR200 million of cash if the plan is accepted, Bloomberg recounts. The company is also seeking lender approval to issue bonds, Bloomberg notes. Madrid-based Grupo Corporativo ONO, S.A. -- http://www.ono.es/-- constructs and operates cable television and telecommunications networks in Spain. UNION DE CREDITOS: S&P Takes Rating Actions on Various Tranches --------------------------------------------------------------- Standard & Poor's Ratings Services took rating actions on several tranches across five Spanish residential mortgage-backed securities transactions originated by Union de Creditos Inmobiliarios. Specifically, S&P: -- Downgraded and removed from CreditWatch negative classes B and C, and placed on CreditWatch negative class A in Fondo de Titulizacion de Activos UCI 14; -- Downgraded and removed from CreditWatch negative classes B and C, and placed on CreditWatch negative class A in Fondo de Titulizacion de Activos UCI 15; -- Downgraded classes A2, B, C, and D in Fondo de Titulizacion de Activos UCI 16 and removed classes B, C, and D from CreditWatch negative; -- Downgraded and removed from CreditWatch negative classes A2, B, and C in Fondo de Titulizacion de Activos UCI 17 and removed class A1 from CreditWatch negative; and -- Downgraded and removed from CreditWatch negative classes A, B and C in Fondo de Titulizacion de Activos UCI 18. The rating actions follow S&P's credit and cash flow analysis of the most recent transaction information that S&P has received. This analysis showed that the credit enhancement available for UCI 14, UCI 15, UCI 16, UCI 17, and UCI 18's notes was not sufficient to maintain the current ratings. This was mainly a result of further deterioration in pool performance. The mortgage portfolios underlying these transactions are all experiencing substantially higher delinquency levels than those S&P recorded in its Spanish RMBS index for this cohort. As of the end of December, severe delinquencies -- defined as arrears greater than 90 days (including outstanding defaulted loans) over the current collateral balance -- were about 16.54% in UCI 14, 18.44% in UCI 15, 22.84% in UCI 16, 18.97% in UCI 17, and 7.35% in UCI 18. This high concentration of long-term arrears also depends on the definition of defaults. Under the transaction documentation, loans are not considered as defaults in these transactions until they are delinquent for more than 18 months. S&P considers that this high concentration of delinquent loans could lead to further defaults and reserve draws. S&P factored actual delinquency and default information into its credit and cash flow analysis. This demonstrated that certain classes of notes in these deals could no longer withstand S&P's rating stresses at their previously assigned rating levels. UCI 14, 15, 16, 17, and 18 issued their notes in November 2005, April 2006, October 2006, May 2007, and February 2008, respectively. UCI originated the loans. These loans have been originated through brokers and real state agencies and are granted to borrowers that already have a house but want to buy a new one (these loans are also known as bridge loans), or to borrowers who, due to their age (whether young or senior), need specific mortgage characteristics like pre-agreed installments or interest-only periods. Ratings List Rating Lowered Fondo de Titulizacion de Activos UCI 16 EUR1.82 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2 AA+ AAA Ratings Lowered and Removed From Creditwatch Negative Fondo de Titulizacion de Activos UCI 14 EUR1.45 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BB BBB/Watch Neg C B- BB+/Watch Neg Fondo de Titulizacion de Activos UCI 15 EUR1.452 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BB BBB/Watch Neg C B BB+/Watch Neg Fondo de Titulizacion de Activos UCI 16 EUR1.82 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BB+ BBB/Watch Neg C BB- BB+/Watch Neg D B- B/Watch Neg Fondo de Titulizacion de Activos UCI 17 EUR1.415 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A2 AA+ AAA/Watch Neg B BB BBB/Watch Neg C B BB+/Watch Neg Fondo de Titulizacion de Activos UCI 18 EUR1.723 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AA+ AAA/Watch Neg B BBB A/Watch Neg C BB BBB/Watch Neg Rating Placed on Creditwatch Negative Fondo de Titulizacion de Activos UCI 14 EUR1.45 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA Fondo de Titulizacion de Activos UCI 15 EUR1.452 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA Rating Removed From Creditwatch Negative Fondo de Titulizacion de Activos UCI 17 EUR1.415 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AAA AAA/Watch Neg =========== S W E D E N =========== SAS AB: Moody's Downgrades Probability of Default Rating to 'Caa2' ------------------------------------------------------------------ Moody's Investors Service lowered to Caa2 from Caa1 the Probability of Default Rating of SAS AB. At the same time, the Caa1 Corporate Family Rating, the Caa2 Probability of Default Rating and the Caa3 subordinate ratings are placed under review for possible downgrade. The rating action follows the company's weakened results for the final quarter of 2009, with reported pre-tax income before exceptional items falling to negative SEK940 million from negative SEK289 million the prior year, on account of continued yield pressure, which has further weakened liquidity. The rating action also reflects Moody's view that the company's announcement that it intends to refinance or extend its bond maturities in 2010 could potentially classify as a distressed exchange under Moody's definition. Moody's notes the Company's proposed rights issue of approximately SEK5.0 billion to be completed in April 2010, as well as the improved terms agreed with its bank lenders, notably the extension some of its facilities by one year to 2013 and the adjusted covenant profile. Finally, Moody's note the company's announcement of additional cost saving measures under the 'Core SAS' program. The review will therefore focus on (i) the measures taken to refinance the bonds maturing in 2010; (ii) the developments of the negotiations with flight deck and cabin unions, as both these and the bond refinancing are prerequisites for the proposed rights issue; and (iii) the impact of a rights issue and other measures on the company's financial profile and liquidity going forward. Moody's last rating action on SAS AB was on 12 November 2009, when Moody's lowered the Corporate Family and Probability of Default Ratings to Caa1 and the subordinate rating to Caa3 with a negative outlook. Headquartered in Stockholm, Sweden, SAS is one of the largest passenger airlines in Europe with c.25 million passengers flown and total revenues of SEK45 billion in 2009. =========================== U N I T E D K I N G D O M =========================== BALFOUR HOMES: In Administration; Begbies Traynor On Board ---------------------------------------------------------- Nigel Price, a partner in Begbies Traynor's Birmingham office and Paul Stanley, a partner in the Manchester office, have been appointed administrators to Balfour Homes (Chisworth) Ltd. It's parent company Balfour Holdings Ltd, which was based in Holmes Chapel, Cheshire, entered administration in 2008. The development of 56 high quality apartments and town houses is in a picturesque location around the old Kinderlee Mill. Mr. Price said his team was currently assessing the site, but it appeared likely that the scheme would be completed and the units offered for sale as a finished project. Some units will hopefully be finished during the spring, with the whole site completed by the end of the year. Trade creditors were owed in the region of GBP31,000. The company had no employees at the date of administration. CO-OPERATIVE BANK: Moody's Lifts Jr. Sub. Debt Rating to 'Ba2' -------------------------------------------------------------- Moody's Investors Service concluded its review on the ratings of certain UK hybrid securities, in line with its revised "Guidelines for Rating Bank Hybrids and Subordinated Debt" published in November 2009. This resulted primarily in a number of downgrades for hybrid securities ratings of UK banks, thus concluding the review for possible downgrade that began on November 18th, 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the subordinated debt holders as well as the senior creditors. Contrary to this expectation -- and to the past behavior of most governments -- the systemic support for these instruments has not been forthcoming in many cases during this crisis. In the UK this change in assumptions was already reflected in the removal of systemic support from subordinated and hybrid instruments from UK bank ratings in April 2009. This followed the introduction of the 2009 Banking Act in February 2009, which provided broad powers for allowing losses to be absorbed by hybrid debt holders through a good bank/ bad bank structure. The revised hybrid ratings guidelines that were published in November 2009 further widen the possible notching on a hybrid's rating that is based on the instrument's features. Rating Action in Detail The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment. The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. The characteristics of UK junior subordinated debt instruments and non-cumulative preference shares are: * The junior subordinated debt is perpetual, ranks subordinated to senior debt in liquidation and allows the issuer to optionally defer coupon payments subject to a dividend pusher language. There is also mandatory deferral tied to the breach of solvency triggers, which is considered a "weak" trigger as it is unlikely to occur outside of a winding up of the institution. Any deferred interest is cumulative. For the UK, unless stated otherwise, junior subordinated debt instruments are rated at the Adjusted BCA level minus two notches. The additional notch reflects the junior subordinated claim as well as the risk of a missed coupon payment and the timeliness of payments, even if accumulated coupons are repaid. * The loss absorption for non-cumulative preferred securities while the issuer remains a going concern primarily stems from the non-cumulative coupon skip feature, which is mandatory upon breach of minimum regulatory capital requirements or generally upon regulatory intervention, or at the option of the issuer if no dividends are paid. Together with their deeply subordinated claim in liquidation, this means that, unless stated otherwise, these instruments are rated to the standard Adjusted BCA minus three notches. Similar to junior subordinated debt, these instruments are also exposed to principal losses in a going concern scenario, which is captured in the three notches. * Similar to preference shares above, Permanent Interest Bearing Shares in this rating action are perpetual non-cumulative instruments issued by building societies and are at the bottom of the capital structure. Their coupon skip mechanism is mandatory with respect to regulatory capital adequacy requirements and optional if interest or dividend payments on share investments have not been made. Their loss absorption is similar to non-cumulative preference shares for banks explained above; therefore they are also rated at Adjusted BCA minus three notches. The rating actions on each UK banks and building societies are detailed below: 1) Barclays Bank Plc The Adjusted BCA for Barclays Bank is A3, which is the same level as its unadjusted BCA. These securities issued by Barclays Bank were affected by this rating action: * Junior subordinated debt and junior subordinated EMTN program ratings (Upper Tier 2) downgraded to Baa2 from Baa1 * Non-cumulative preferred securities downgraded to Baa3 from Baa2 The outlook for all the affected instruments is negative, in line with the negative outlook for Barclays Bank's C BFSR and corresponding A3 BCA. 2) HSBC Holdings Plc The Adjusted BCA for HSBC Holdings Plc is Aa3, which is the same level as its unadjusted BCA. These securities issued by HSBC Holdings Plc were affected by this rating action: * Non-cumulative preferred securities (Tier 1) downgraded to A3 from A1/A2 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Holdings Plc's Aa3 BCA 3) HSBC Bank Plc The Adjusted BCA for HSBC Bank Plc is A1, which is one notch above its unadjusted BCA of A2. These securities issued by HSBC Bank Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) downgraded to A3 from A2, * Non-cumulative preferred securities (Tier 1) downgraded to Baa1 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Bank Plc's C+ BFSR and corresponding A2 BCA 4) Nationwide Building Society The Adjusted BCA for Nationwide is Baa2, which is the same level as its unadjusted BCA. These securities issued by Nationwide were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Nationwide Building Society's C- BFSR and the corresponding Baa2 BCA. 5) Skipton Building Society The Adjusted BCA for Skipton is Ba1, which is the same level as its unadjusted BCA. These securities issued by Skipton were affected by this rating action: * PIBS rating was downgraded to B1 from Ba3 The outlook for all the affected instruments is negative, in line with the negative outlook for Skipton Building Society's D+ BFSR and corresponding Ba1 BCA. 6) Coventry Building Society The Adjusted BCA for Coventry is Baa2, which is the same level as its unadjusted BCA. These securities issued by Coventry were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Coventry Building Society's C- BFSR and the corresponding Baa2 BCA. 7) Close Brothers Ltd The Adjusted BCA for Close Brothers Ltd. is A2, which is the same level as its unadjusted BCA. These securities issued by Close Brothers Ltd. were affected by this rating action: * The Junior subordinated EMTN program rating (Upper Tier 2) was downgraded to Baa1 from A3. The outlook for all the affected instruments is negative, in line with the negative outlook for Close Brothers Ltd. C+ BFSR and corresponding A2 BCA. 8) The Co-operative Bank The Adjusted BCA for The Co-operative Bank is Baa3, which is the same level as its unadjusted BCA. The junior subordinated debt (Upper Tier 2) of The Co-Operative Bank was upgraded to Ba2 from Ba3. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for all the affected instruments is stable, in line with the stable outlook for The Co-Operative Bank's D+ BFSR and corresponding Baa3 BCA. 9) Clydesdale The Adjusted BCA for Clydesdale is A2, which is the same level as its unadjusted BCA The junior subordinated EMTN program rating (Upper Tier 2) was confirmed at A3 (negative outlook) as the terms and conditions of the program mean that there is no optional deferral right. Therefore the risk of this instrument is restricted to its subordinated ranking in liquidation. 10) ICICI Bank UK Plc The Adjusted BCA for ICICI Bank is Baa2, which is three notches above its unadjusted BCA, reflecting uplift from parental support These securities issued by ICICI Bank UK Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) was upgraded to Ba1 from Ba2. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for the affected rating class instruments is stable, in line with the stable outlook for ICICI Bank UK Plc's D BFSR and corresponding Baa2 BCA. The junior subordinated and Tier 1 debt of RBS and Lloyds are unaffected by this announcement, as Moody's have already taken rating actions to incorporate the expected coupon skip on certain instruments following the European Commission requirement to defer coupons as a result of State Aid received (May Pay securities), and have already applied the revised methodology to instruments not expected to skip coupons due to dividend pusher language (Must Pay or potential Must Pay securities). The last rating action on Barclays Bank Plc was on February 1, 2009, when Moody's downgraded Barclay's senior debt ratings to Aa3 (with stable outlook) and BFSR to C (with negative outlook). Barclays is headquartered in London, UK. At June 30, 2009, it had total assets of GBP1,545 billion. The last rating actions on HSBC Holdings Plc and HSBC Bank plc were on April 9, 2009, when Moody's downgraded the subordinated debt ratings of HSBC Holdings Plc to A1 from Aa3 and its hybrid securities to A2 from A1 (with a negative outlook); in the same rating action Moody's downgraded HSBC Bank Plc' subordinated debt rating to A2 from Aa3, and hybrid debt to A3 from A1 (with a negative outlook). HSBC Holdings is headquartered in London, UK. At June 30, 2009, it had total assets of US$2,422 billion. The last rating action on Nationwide Building Society was on April 14, 2009, when Moody's downgraded Nationwide's senior debt ratings to Aa3 (with stable outlook), and its BFSR to C- (with negative outlook). Nationwide Building Society is headquartered in UK. At September 30, 2009, it had total assets of US$318billion. The last rating action on Skipton Building Society was on April 14, 2009, when Moody's downgraded Skipton's senior debt ratings to Baa1 (with negative outlook), BFSR to D+ (with negative outlook) and dated subordinated debt to Ba2. Skipton Building Society is headquartered in UK. At June 30, 2009, it had total assets of US$25billion. The last rating action on Coventry Building Society was on April 14, 2009, when Moody's downgraded Coventry's senior debt ratings to A3 (with negative outlook), and its BFSR to C- (with negative outlook). Coventry Building Society is headquartered in UK. At December 31, 2008, it had total assets of US$25billion. The last rating action on Close Brothers was on May 12, 2009, when Moody's changed Close Brother's Bank outlook to negative in view of the increasing pressures on the bank's profitability and capital, as a result of the credit crunch. Close Brothers is headquartered in London. At July 31, 2009, it had total assets of GBP4,005 billion. The last rating action on The Co-Operative Bank was on August 3, 2009, when Moody's downgraded the bank's BFSR to D+, following the merger with Britannia Building Society. The Co-Operative Bank is headquartered in Manchester. At January 10, 2009, it had total assets of GBP14,964 billion. The last rating action on Clydesdale Bank was on May 12, 2009, when the bank's senior debt ratings were downgraded to A1 (with negative outlook), BFSR was downgraded to C- (with stable outlook) and subordinated debt ratings were downgraded to A3. Clydesdale is headquartered in UK. At September 30, 2009, it had total assets of US$68billion. The last rating action on ICICI Bank UK Plc was on November 3, 2008, when Moody's downgraded the bank's senior debt ratings to Baa2 (with stable outlook), subordinated debt to Baa3 and junior subordinated debt to Ba2. ICICI Bank UK Plc is headquartered in London, UK. At March 31, 2009, it had total assets of US$7billion. COVENTRY BUILDING: Moody's Cuts PIBS Rating to 'Ba2' From 'Ba1' --------------------------------------------------------------- Moody's Investors Service concluded its review on the ratings of certain UK hybrid securities, in line with its revised "Guidelines for Rating Bank Hybrids and Subordinated Debt" published in November 2009. This resulted primarily in a number of downgrades for hybrid securities ratings of UK banks, thus concluding the review for possible downgrade that began on November 18th, 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the subordinated debt holders as well as the senior creditors. Contrary to this expectation -- and to the past behavior of most governments -- the systemic support for these instruments has not been forthcoming in many cases during this crisis. In the UK this change in assumptions was already reflected in the removal of systemic support from subordinated and hybrid instruments from UK bank ratings in April 2009. This followed the introduction of the 2009 Banking Act in February 2009, which provided broad powers for allowing losses to be absorbed by hybrid debt holders through a good bank/ bad bank structure. The revised hybrid ratings guidelines that were published in November 2009 further widen the possible notching on a hybrid's rating that is based on the instrument's features. Rating Action in Detail The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment. The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. The characteristics of UK junior subordinated debt instruments and non-cumulative preference shares are: * The junior subordinated debt is perpetual, ranks subordinated to senior debt in liquidation and allows the issuer to optionally defer coupon payments subject to a dividend pusher language. There is also mandatory deferral tied to the breach of solvency triggers, which is considered a "weak" trigger as it is unlikely to occur outside of a winding up of the institution. Any deferred interest is cumulative. For the UK, unless stated otherwise, junior subordinated debt instruments are rated at the Adjusted BCA level minus two notches. The additional notch reflects the junior subordinated claim as well as the risk of a missed coupon payment and the timeliness of payments, even if accumulated coupons are repaid. * The loss absorption for non-cumulative preferred securities while the issuer remains a going concern primarily stems from the non-cumulative coupon skip feature, which is mandatory upon breach of minimum regulatory capital requirements or generally upon regulatory intervention, or at the option of the issuer if no dividends are paid. Together with their deeply subordinated claim in liquidation, this means that, unless stated otherwise, these instruments are rated to the standard Adjusted BCA minus three notches. Similar to junior subordinated debt, these instruments are also exposed to principal losses in a going concern scenario, which is captured in the three notches. * Similar to preference shares above, Permanent Interest Bearing Shares in this rating action are perpetual non-cumulative instruments issued by building societies and are at the bottom of the capital structure. Their coupon skip mechanism is mandatory with respect to regulatory capital adequacy requirements and optional if interest or dividend payments on share investments have not been made. Their loss absorption is similar to non-cumulative preference shares for banks explained above; therefore they are also rated at Adjusted BCA minus three notches. The rating actions on each UK banks and building societies are detailed below: 1) Barclays Bank Plc The Adjusted BCA for Barclays Bank is A3, which is the same level as its unadjusted BCA. These securities issued by Barclays Bank were affected by this rating action: * Junior subordinated debt and junior subordinated EMTN program ratings (Upper Tier 2) downgraded to Baa2 from Baa1 * Non-cumulative preferred securities downgraded to Baa3 from Baa2 The outlook for all the affected instruments is negative, in line with the negative outlook for Barclays Bank's C BFSR and corresponding A3 BCA. 2) HSBC Holdings Plc The Adjusted BCA for HSBC Holdings Plc is Aa3, which is the same level as its unadjusted BCA. These securities issued by HSBC Holdings Plc were affected by this rating action: * Non-cumulative preferred securities (Tier 1) downgraded to A3 from A1/A2 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Holdings Plc's Aa3 BCA 3) HSBC Bank Plc The Adjusted BCA for HSBC Bank Plc is A1, which is one notch above its unadjusted BCA of A2. These securities issued by HSBC Bank Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) downgraded to A3 from A2, * Non-cumulative preferred securities (Tier 1) downgraded to Baa1 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Bank Plc's C+ BFSR and corresponding A2 BCA 4) Nationwide Building Society The Adjusted BCA for Nationwide is Baa2, which is the same level as its unadjusted BCA. These securities issued by Nationwide were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Nationwide Building Society's C- BFSR and the corresponding Baa2 BCA. 5) Skipton Building Society The Adjusted BCA for Skipton is Ba1, which is the same level as its unadjusted BCA. These securities issued by Skipton were affected by this rating action: * PIBS rating was downgraded to B1 from Ba3 The outlook for all the affected instruments is negative, in line with the negative outlook for Skipton Building Society's D+ BFSR and corresponding Ba1 BCA. 6) Coventry Building Society The Adjusted BCA for Coventry is Baa2, which is the same level as its unadjusted BCA. These securities issued by Coventry were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Coventry Building Society's C- BFSR and the corresponding Baa2 BCA. 7) Close Brothers Ltd The Adjusted BCA for Close Brothers Ltd. is A2, which is the same level as its unadjusted BCA. These securities issued by Close Brothers Ltd. were affected by this rating action: * The Junior subordinated EMTN program rating (Upper Tier 2) was downgraded to Baa1 from A3. The outlook for all the affected instruments is negative, in line with the negative outlook for Close Brothers Ltd. C+ BFSR and corresponding A2 BCA. 8) The Co-operative Bank The Adjusted BCA for The Co-operative Bank is Baa3, which is the same level as its unadjusted BCA. The junior subordinated debt (Upper Tier 2) of The Co-Operative Bank was upgraded to Ba2 from Ba3. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for all the affected instruments is stable, in line with the stable outlook for The Co-Operative Bank's D+ BFSR and corresponding Baa3 BCA. 9) Clydesdale The Adjusted BCA for Clydesdale is A2, which is the same level as its unadjusted BCA The junior subordinated EMTN program rating (Upper Tier 2) was confirmed at A3 (negative outlook) as the terms and conditions of the program mean that there is no optional deferral right. Therefore the risk of this instrument is restricted to its subordinated ranking in liquidation. 10) ICICI Bank UK Plc The Adjusted BCA for ICICI Bank is Baa2, which is three notches above its unadjusted BCA, reflecting uplift from parental support These securities issued by ICICI Bank UK Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) was upgraded to Ba1 from Ba2. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for the affected rating class instruments is stable, in line with the stable outlook for ICICI Bank UK Plc's D BFSR and corresponding Baa2 BCA. The junior subordinated and Tier 1 debt of RBS and Lloyds are unaffected by this announcement, as Moody's have already taken rating actions to incorporate the expected coupon skip on certain instruments following the European Commission requirement to defer coupons as a result of State Aid received (May Pay securities), and have already applied the revised methodology to instruments not expected to skip coupons due to dividend pusher language (Must Pay or potential Must Pay securities). The last rating action on Barclays Bank Plc was on February 1, 2009, when Moody's downgraded Barclay's senior debt ratings to Aa3 (with stable outlook) and BFSR to C (with negative outlook). Barclays is headquartered in London, UK. At June 30, 2009, it had total assets of GBP1,545 billion. The last rating actions on HSBC Holdings Plc and HSBC Bank plc were on April 9, 2009, when Moody's downgraded the subordinated debt ratings of HSBC Holdings Plc to A1 from Aa3 and its hybrid securities to A2 from A1 (with a negative outlook); in the same rating action Moody's downgraded HSBC Bank Plc' subordinated debt rating to A2 from Aa3, and hybrid debt to A3 from A1 (with a negative outlook). HSBC Holdings is headquartered in London, UK. At June 30, 2009, it had total assets of US$2,422 billion. The last rating action on Nationwide Building Society was on April 14, 2009, when Moody's downgraded Nationwide's senior debt ratings to Aa3 (with stable outlook), and its BFSR to C- (with negative outlook). Nationwide Building Society is headquartered in UK. At September 30, 2009, it had total assets of US$318billion. The last rating action on Skipton Building Society was on April 14, 2009, when Moody's downgraded Skipton's senior debt ratings to Baa1 (with negative outlook), BFSR to D+ (with negative outlook) and dated subordinated debt to Ba2. Skipton Building Society is headquartered in UK. At June 30, 2009, it had total assets of US$25billion. The last rating action on Coventry Building Society was on April 14, 2009, when Moody's downgraded Coventry's senior debt ratings to A3 (with negative outlook), and its BFSR to C- (with negative outlook). Coventry Building Society is headquartered in UK. At December 31, 2008, it had total assets of US$25billion. The last rating action on Close Brothers was on May 12, 2009, when Moody's changed Close Brother's Bank outlook to negative in view of the increasing pressures on the bank's profitability and capital, as a result of the credit crunch. Close Brothers is headquartered in London. At July 31, 2009, it had total assets of GBP4,005 billion. The last rating action on The Co-Operative Bank was on August 3, 2009, when Moody's downgraded the bank's BFSR to D+, following the merger with Britannia Building Society. The Co-Operative Bank is headquartered in Manchester. At January 10, 2009, it had total assets of GBP14,964 billion. The last rating action on Clydesdale Bank was on May 12, 2009, when the bank's senior debt ratings were downgraded to A1 (with negative outlook), BFSR was downgraded to C- (with stable outlook) and subordinated debt ratings were downgraded to A3. Clydesdale is headquartered in UK. At September 30, 2009, it had total assets of US$68billion. The last rating action on ICICI Bank UK Plc was on November 3, 2008, when Moody's downgraded the bank's senior debt ratings to Baa2 (with stable outlook), subordinated debt to Baa3 and junior subordinated debt to Ba2. ICICI Bank UK Plc is headquartered in London, UK. At March 31, 2009, it had total assets of US$7billion. CRU INVESTMENT: Shareholders, Creditors to Vote on Liquidation -------------------------------------------------------------- Shareholders and creditors of collapsed fund manager Cru Investment Management Ltd will be asked to vote on the possible liquidation of the company. John Cullen, a partner at Cardiff-based insolvency practitioners Harris Lipman, has been appointed to assist in convening the meetings, but formal liquidation proceedings have not yet started. It has been proposed that John Cullen and Barry Lewis from Harris Lipman be appointed joint liquidators. Trading in CIMs funds, which were managed by Arch and later Spearpoint, was suspended last year. Mr. Cullen said: "When the company's situation was outlined to me, I felt that liquidation was the only option. "I have been approached by Cru Investment Management Ltd. with a view to me assisting with convening meetings of shareholders and creditors under the Insolvency Act, which are set to result in the company being placed into liquidation." Provided the shareholders and creditors agree, a liquidator will be appointed in due course. Details of the meetings will be announced to interested parties shortly. ELLIS MORGAN: In Liquidation; 28 Jobs Affected ---------------------------------------------- Ellis Morgan & Sons of Rogerstone, Newport has gone into liquidation after its major customer went out of business. All 28 employees at the company have been made redundant. The South Wales haulage firm ceased trading after its main client, Cwmbran-based sheet feeder Western Corrugated Ltd, went into administration in January. The directors estimate that the Western collapse cost it a total of GBP250,000. Ellis Morgan & Sons' creditors are owed a total of GBP1.46 million. Liquidator David Hill from the Cardiff office of business rescue, recovery and restructuring specialists Begbies Traynor, said: "Ellis Morgan lost three major customers in 2008 but signed a contract with Western in April 2009 that would generate additional turnover of about GBP1 million a year. "Ten drivers from Western transferred to Ellis Morgan and the company hired ten vehicles to enable it to make up to 19 deliveries a day. "Sadly, Western Corrugated went into administration in January, leaving the directors of Ellis Morgan with no option but to cease trading. Ellis Morgan & Sons began trading in 1820 and was owned and operated by six generations of the same family. EUROPUBS LIMITED: High Court Orders Liquidation ----------------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Europubs Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: 16a Pennyburn Industrial Estate Pennyburn Londonderry, BT48 0LU Northern Ireland FRANCIS MCPEAKE: High Court Orders Liquidation ---------------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Francis McPeake School Of Music Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: 2 Gloucester Street Belfast, BT1 4LS Northern Ireland HJ BERRY: In Administration; 85 Jobs at Risk -------------------------------------------- BBC News reports that HJ Berry has gone into administration after more than 160 years of trading, putting 85 jobs at risk. According to the report, the company has struggled for the last couple of years as order numbers have fallen. The report recalls last year millionaire Sir Gerry Robinson offered the struggling firm GBP1 million but the company decided not to take up the offer. Based in Chipping, HJ Berry is a chipping furniture maker. The company specializes in using native, mainly locally grown timber for its chairs and has won awards for its environmentally friendly approach, according to BBC News. ICICI BANK: Moody's Lifts Jr. Subordinated Debt Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service concluded its review on the ratings of certain UK hybrid securities, in line with its revised "Guidelines for Rating Bank Hybrids and Subordinated Debt" published in November 2009. This resulted primarily in a number of downgrades for hybrid securities ratings of UK banks, thus concluding the review for possible downgrade that began on November 18th, 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the subordinated debt holders as well as the senior creditors. Contrary to this expectation -- and to the past behavior of most governments -- the systemic support for these instruments has not been forthcoming in many cases during this crisis. In the UK this change in assumptions was already reflected in the removal of systemic support from subordinated and hybrid instruments from UK bank ratings in April 2009. This followed the introduction of the 2009 Banking Act in February 2009, which provided broad powers for allowing losses to be absorbed by hybrid debt holders through a good bank/ bad bank structure. The revised hybrid ratings guidelines that were published in November 2009 further widen the possible notching on a hybrid's rating that is based on the instrument's features. Rating Action in Detail The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment. The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. The characteristics of UK junior subordinated debt instruments and non-cumulative preference shares are: * The junior subordinated debt is perpetual, ranks subordinated to senior debt in liquidation and allows the issuer to optionally defer coupon payments subject to a dividend pusher language. There is also mandatory deferral tied to the breach of solvency triggers, which is considered a "weak" trigger as it is unlikely to occur outside of a winding up of the institution. Any deferred interest is cumulative. For the UK, unless stated otherwise, junior subordinated debt instruments are rated at the Adjusted BCA level minus two notches. The additional notch reflects the junior subordinated claim as well as the risk of a missed coupon payment and the timeliness of payments, even if accumulated coupons are repaid. * The loss absorption for non-cumulative preferred securities while the issuer remains a going concern primarily stems from the non-cumulative coupon skip feature, which is mandatory upon breach of minimum regulatory capital requirements or generally upon regulatory intervention, or at the option of the issuer if no dividends are paid. Together with their deeply subordinated claim in liquidation, this means that, unless stated otherwise, these instruments are rated to the standard Adjusted BCA minus three notches. Similar to junior subordinated debt, these instruments are also exposed to principal losses in a going concern scenario, which is captured in the three notches. * Similar to preference shares above, Permanent Interest Bearing Shares in this rating action are perpetual non-cumulative instruments issued by building societies and are at the bottom of the capital structure. Their coupon skip mechanism is mandatory with respect to regulatory capital adequacy requirements and optional if interest or dividend payments on share investments have not been made. Their loss absorption is similar to non-cumulative preference shares for banks explained above; therefore they are also rated at Adjusted BCA minus three notches. The rating actions on each UK banks and building societies are detailed below: 1) Barclays Bank Plc The Adjusted BCA for Barclays Bank is A3, which is the same level as its unadjusted BCA. These securities issued by Barclays Bank were affected by this rating action: * Junior subordinated debt and junior subordinated EMTN program ratings (Upper Tier 2) downgraded to Baa2 from Baa1 * Non-cumulative preferred securities downgraded to Baa3 from Baa2 The outlook for all the affected instruments is negative, in line with the negative outlook for Barclays Bank's C BFSR and corresponding A3 BCA. 2) HSBC Holdings Plc The Adjusted BCA for HSBC Holdings Plc is Aa3, which is the same level as its unadjusted BCA. These securities issued by HSBC Holdings Plc were affected by this rating action: * Non-cumulative preferred securities (Tier 1) downgraded to A3 from A1/A2 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Holdings Plc's Aa3 BCA 3) HSBC Bank Plc The Adjusted BCA for HSBC Bank Plc is A1, which is one notch above its unadjusted BCA of A2. These securities issued by HSBC Bank Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) downgraded to A3 from A2, * Non-cumulative preferred securities (Tier 1) downgraded to Baa1 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Bank Plc's C+ BFSR and corresponding A2 BCA 4) Nationwide Building Society The Adjusted BCA for Nationwide is Baa2, which is the same level as its unadjusted BCA. These securities issued by Nationwide were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Nationwide Building Society's C- BFSR and the corresponding Baa2 BCA. 5) Skipton Building Society The Adjusted BCA for Skipton is Ba1, which is the same level as its unadjusted BCA. These securities issued by Skipton were affected by this rating action: * PIBS rating was downgraded to B1 from Ba3 The outlook for all the affected instruments is negative, in line with the negative outlook for Skipton Building Society's D+ BFSR and corresponding Ba1 BCA. 6) Coventry Building Society The Adjusted BCA for Coventry is Baa2, which is the same level as its unadjusted BCA. These securities issued by Coventry were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Coventry Building Society's C- BFSR and the corresponding Baa2 BCA. 7) Close Brothers Ltd The Adjusted BCA for Close Brothers Ltd. is A2, which is the same level as its unadjusted BCA. These securities issued by Close Brothers Ltd. were affected by this rating action: * The Junior subordinated EMTN program rating (Upper Tier 2) was downgraded to Baa1 from A3. The outlook for all the affected instruments is negative, in line with the negative outlook for Close Brothers Ltd. C+ BFSR and corresponding A2 BCA. 8) The Co-operative Bank The Adjusted BCA for The Co-operative Bank is Baa3, which is the same level as its unadjusted BCA. The junior subordinated debt (Upper Tier 2) of The Co-Operative Bank was upgraded to Ba2 from Ba3. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for all the affected instruments is stable, in line with the stable outlook for The Co-Operative Bank's D+ BFSR and corresponding Baa3 BCA. 9) Clydesdale The Adjusted BCA for Clydesdale is A2, which is the same level as its unadjusted BCA The junior subordinated EMTN program rating (Upper Tier 2) was confirmed at A3 (negative outlook) as the terms and conditions of the program mean that there is no optional deferral right. Therefore the risk of this instrument is restricted to its subordinated ranking in liquidation. 10) ICICI Bank UK Plc The Adjusted BCA for ICICI Bank is Baa2, which is three notches above its unadjusted BCA, reflecting uplift from parental support These securities issued by ICICI Bank UK Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) was upgraded to Ba1 from Ba2. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for the affected rating class instruments is stable, in line with the stable outlook for ICICI Bank UK Plc's D BFSR and corresponding Baa2 BCA. The junior subordinated and Tier 1 debt of RBS and Lloyds are unaffected by this announcement, as Moody's have already taken rating actions to incorporate the expected coupon skip on certain instruments following the European Commission requirement to defer coupons as a result of State Aid received (May Pay securities), and have already applied the revised methodology to instruments not expected to skip coupons due to dividend pusher language (Must Pay or potential Must Pay securities). The last rating action on Barclays Bank Plc was on February 1, 2009, when Moody's downgraded Barclay's senior debt ratings to Aa3 (with stable outlook) and BFSR to C (with negative outlook). Barclays is headquartered in London, UK. At June 30, 2009, it had total assets of GBP1,545 billion. The last rating actions on HSBC Holdings Plc and HSBC Bank plc were on April 9, 2009, when Moody's downgraded the subordinated debt ratings of HSBC Holdings Plc to A1 from Aa3 and its hybrid securities to A2 from A1 (with a negative outlook); in the same rating action Moody's downgraded HSBC Bank Plc' subordinated debt rating to A2 from Aa3, and hybrid debt to A3 from A1 (with a negative outlook). HSBC Holdings is headquartered in London, UK. At June 30, 2009, it had total assets of US$2,422 billion. The last rating action on Nationwide Building Society was on April 14, 2009, when Moody's downgraded Nationwide's senior debt ratings to Aa3 (with stable outlook), and its BFSR to C- (with negative outlook). Nationwide Building Society is headquartered in UK. At September 30, 2009, it had total assets of US$318billion. The last rating action on Skipton Building Society was on April 14, 2009, when Moody's downgraded Skipton's senior debt ratings to Baa1 (with negative outlook), BFSR to D+ (with negative outlook) and dated subordinated debt to Ba2. Skipton Building Society is headquartered in UK. At June 30, 2009, it had total assets of US$25billion. The last rating action on Coventry Building Society was on April 14, 2009, when Moody's downgraded Coventry's senior debt ratings to A3 (with negative outlook), and its BFSR to C- (with negative outlook). Coventry Building Society is headquartered in UK. At December 31, 2008, it had total assets of US$25billion. The last rating action on Close Brothers was on May 12, 2009, when Moody's changed Close Brother's Bank outlook to negative in view of the increasing pressures on the bank's profitability and capital, as a result of the credit crunch. Close Brothers is headquartered in London. At July 31, 2009, it had total assets of GBP4,005 billion. The last rating action on The Co-Operative Bank was on August 3, 2009, when Moody's downgraded the bank's BFSR to D+, following the merger with Britannia Building Society. The Co-Operative Bank is headquartered in Manchester. At January 10, 2009, it had total assets of GBP14,964 billion. The last rating action on Clydesdale Bank was on May 12, 2009, when the bank's senior debt ratings were downgraded to A1 (with negative outlook), BFSR was downgraded to C- (with stable outlook) and subordinated debt ratings were downgraded to A3. Clydesdale is headquartered in UK. At September 30, 2009, it had total assets of US$68billion. The last rating action on ICICI Bank UK Plc was on November 3, 2008, when Moody's downgraded the bank's senior debt ratings to Baa2 (with stable outlook), subordinated debt to Baa3 and junior subordinated debt to Ba2. ICICI Bank UK Plc is headquartered in London, UK. At March 31, 2009, it had total assets of US$7billion. LONDON TOWN: May Be Put Into Pre-Pack Administration This Week -------------------------------------------------------------- Pan Kwan Yuk and Rachel Sanderson at The Financial Times report that London Town plc is facing imminent administration after management failed to find a solution to its onerous debt burden. The FT says the group, which has been working with the likes of Punch Taverns and Enterprise Inns to reopen closed pubs, is understood to be on the verge of being put into a pre-pack administration. According to the FT, news of the pre-pack -- a process where a buyer is lined up in advance, enabling a business to continue trading while shedding liabilities -- could be announced as soon as Thursday, Feb. 18, when London Town's shares are scheduled to be taken off the junior market. The FT recalls in June, the company, which owns 407 managed and tenanted pubs, revealed that pre-tax losses for the year to December 28, 2008 had more than doubled from GBP11.6 million to GBP24.7 million. The accounts, which were drawn up on a "going concern basis", also revealed that it had breached covenants on its GBP83.7 million bank loans and that it was in talks with its lenders over the terms of its banking facilities, the FT notes. In September, when the company issued its interim results, which were unaudited, it said, it was still in negotiation with its lenders, the FT recounts. Net debt at the year end stood at GBP110.8 million, the FT discloses. London Town plc -- http://londontownplc.co.uk/-- is a United Kingdom-based Company. The Company, along with its subsidiaries, is engaged in the operation of pubs either under lease and tenancy agreements or through the direct management of pubs. It subsidiaries include GRS Pubs Limited, GRS Pub Investment Limited, GRS Inns Limited, and London Town Management Services Limited. The Company's agreements with tenants in the leased division consist of both tied and free of tie arrangements and generate income from rents, sales of beer and other drinks, and through profit share arrangements for income from leisure machines. The direct management of pubs generates income directly from pub customers from beer and other drink sales, as well as food sales. As of December 28, 2008, the Company operated 314 pubs, of which 176 were leased pubs, 124 were managed pubs, and a further 14 were held for sale. MASTER PREFABRICATIONS: High Court Orders Liquidation ----------------------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Master Prefabrications Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: Unit 11 Charlemount Industrial Estate Moy Dungannon, BT71 7SD Northern Ireland MOVIE DOCK: High Court Orders Liquidation ----------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of The Movie Dock Ltd. said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: Hanna Thompson Century House Enterprise Crescent Ballinderry Road Lisburn, BT28 2BP Northern Ireland NATIONWIDE BUILDING: Moody's Cuts PIBS Rating to 'Ba2' From 'Ba1' ----------------------------------------------------------------- Moody's Investors Service concluded its review on the ratings of certain UK hybrid securities, in line with its revised "Guidelines for Rating Bank Hybrids and Subordinated Debt" published in November 2009. This resulted primarily in a number of downgrades for hybrid securities ratings of UK banks, thus concluding the review for possible downgrade that began on November 18th, 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the subordinated debt holders as well as the senior creditors. Contrary to this expectation -- and to the past behavior of most governments -- the systemic support for these instruments has not been forthcoming in many cases during this crisis. In the UK this change in assumptions was already reflected in the removal of systemic support from subordinated and hybrid instruments from UK bank ratings in April 2009. This followed the introduction of the 2009 Banking Act in February 2009, which provided broad powers for allowing losses to be absorbed by hybrid debt holders through a good bank/ bad bank structure. The revised hybrid ratings guidelines that were published in November 2009 further widen the possible notching on a hybrid's rating that is based on the instrument's features. Rating Action in Detail The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment. The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. The characteristics of UK junior subordinated debt instruments and non-cumulative preference shares are: * The junior subordinated debt is perpetual, ranks subordinated to senior debt in liquidation and allows the issuer to optionally defer coupon payments subject to a dividend pusher language. There is also mandatory deferral tied to the breach of solvency triggers, which is considered a "weak" trigger as it is unlikely to occur outside of a winding up of the institution. Any deferred interest is cumulative. For the UK, unless stated otherwise, junior subordinated debt instruments are rated at the Adjusted BCA level minus two notches. The additional notch reflects the junior subordinated claim as well as the risk of a missed coupon payment and the timeliness of payments, even if accumulated coupons are repaid. * The loss absorption for non-cumulative preferred securities while the issuer remains a going concern primarily stems from the non-cumulative coupon skip feature, which is mandatory upon breach of minimum regulatory capital requirements or generally upon regulatory intervention, or at the option of the issuer if no dividends are paid. Together with their deeply subordinated claim in liquidation, this means that, unless stated otherwise, these instruments are rated to the standard Adjusted BCA minus three notches. Similar to junior subordinated debt, these instruments are also exposed to principal losses in a going concern scenario, which is captured in the three notches. * Similar to preference shares above, Permanent Interest Bearing Shares in this rating action are perpetual non-cumulative instruments issued by building societies and are at the bottom of the capital structure. Their coupon skip mechanism is mandatory with respect to regulatory capital adequacy requirements and optional if interest or dividend payments on share investments have not been made. Their loss absorption is similar to non-cumulative preference shares for banks explained above; therefore they are also rated at Adjusted BCA minus three notches. The rating actions on each UK banks and building societies are detailed below: 1) Barclays Bank Plc The Adjusted BCA for Barclays Bank is A3, which is the same level as its unadjusted BCA. These securities issued by Barclays Bank were affected by this rating action: * Junior subordinated debt and junior subordinated EMTN program ratings (Upper Tier 2) downgraded to Baa2 from Baa1 * Non-cumulative preferred securities downgraded to Baa3 from Baa2 The outlook for all the affected instruments is negative, in line with the negative outlook for Barclays Bank's C BFSR and corresponding A3 BCA. 2) HSBC Holdings Plc The Adjusted BCA for HSBC Holdings Plc is Aa3, which is the same level as its unadjusted BCA. These securities issued by HSBC Holdings Plc were affected by this rating action: * Non-cumulative preferred securities (Tier 1) downgraded to A3 from A1/A2 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Holdings Plc's Aa3 BCA 3) HSBC Bank Plc The Adjusted BCA for HSBC Bank Plc is A1, which is one notch above its unadjusted BCA of A2. These securities issued by HSBC Bank Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) downgraded to A3 from A2, * Non-cumulative preferred securities (Tier 1) downgraded to Baa1 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Bank Plc's C+ BFSR and corresponding A2 BCA 4) Nationwide Building Society The Adjusted BCA for Nationwide is Baa2, which is the same level as its unadjusted BCA. These securities issued by Nationwide were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Nationwide Building Society's C- BFSR and the corresponding Baa2 BCA. 5) Skipton Building Society The Adjusted BCA for Skipton is Ba1, which is the same level as its unadjusted BCA. These securities issued by Skipton were affected by this rating action: * PIBS rating was downgraded to B1 from Ba3 The outlook for all the affected instruments is negative, in line with the negative outlook for Skipton Building Society's D+ BFSR and corresponding Ba1 BCA. 6) Coventry Building Society The Adjusted BCA for Coventry is Baa2, which is the same level as its unadjusted BCA. These securities issued by Coventry were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Coventry Building Society's C- BFSR and the corresponding Baa2 BCA. 7) Close Brothers Ltd The Adjusted BCA for Close Brothers Ltd. is A2, which is the same level as its unadjusted BCA. These securities issued by Close Brothers Ltd. were affected by this rating action: * The Junior subordinated EMTN program rating (Upper Tier 2) was downgraded to Baa1 from A3. The outlook for all the affected instruments is negative, in line with the negative outlook for Close Brothers Ltd. C+ BFSR and corresponding A2 BCA. 8) The Co-operative Bank The Adjusted BCA for The Co-operative Bank is Baa3, which is the same level as its unadjusted BCA. The junior subordinated debt (Upper Tier 2) of The Co-Operative Bank was upgraded to Ba2 from Ba3. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for all the affected instruments is stable, in line with the stable outlook for The Co-Operative Bank's D+ BFSR and corresponding Baa3 BCA. 9) Clydesdale The Adjusted BCA for Clydesdale is A2, which is the same level as its unadjusted BCA The junior subordinated EMTN program rating (Upper Tier 2) was confirmed at A3 (negative outlook) as the terms and conditions of the program mean that there is no optional deferral right. Therefore the risk of this instrument is restricted to its subordinated ranking in liquidation. 10) ICICI Bank UK Plc The Adjusted BCA for ICICI Bank is Baa2, which is three notches above its unadjusted BCA, reflecting uplift from parental support These securities issued by ICICI Bank UK Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) was upgraded to Ba1 from Ba2. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for the affected rating class instruments is stable, in line with the stable outlook for ICICI Bank UK Plc's D BFSR and corresponding Baa2 BCA. The junior subordinated and Tier 1 debt of RBS and Lloyds are unaffected by this announcement, as Moody's have already taken rating actions to incorporate the expected coupon skip on certain instruments following the European Commission requirement to defer coupons as a result of State Aid received (May Pay securities), and have already applied the revised methodology to instruments not expected to skip coupons due to dividend pusher language (Must Pay or potential Must Pay securities). The last rating action on Barclays Bank Plc was on February 1, 2009, when Moody's downgraded Barclay's senior debt ratings to Aa3 (with stable outlook) and BFSR to C (with negative outlook). Barclays is headquartered in London, UK. At June 30, 2009, it had total assets of GBP1,545 billion. The last rating actions on HSBC Holdings Plc and HSBC Bank plc were on April 9, 2009, when Moody's downgraded the subordinated debt ratings of HSBC Holdings Plc to A1 from Aa3 and its hybrid securities to A2 from A1 (with a negative outlook); in the same rating action Moody's downgraded HSBC Bank Plc' subordinated debt rating to A2 from Aa3, and hybrid debt to A3 from A1 (with a negative outlook). HSBC Holdings is headquartered in London, UK. At June 30, 2009, it had total assets of US$2,422 billion. The last rating action on Nationwide Building Society was on April 14, 2009, when Moody's downgraded Nationwide's senior debt ratings to Aa3 (with stable outlook), and its BFSR to C- (with negative outlook). Nationwide Building Society is headquartered in UK. At September 30, 2009, it had total assets of US$318billion. The last rating action on Skipton Building Society was on April 14, 2009, when Moody's downgraded Skipton's senior debt ratings to Baa1 (with negative outlook), BFSR to D+ (with negative outlook) and dated subordinated debt to Ba2. Skipton Building Society is headquartered in UK. At June 30, 2009, it had total assets of US$25billion. The last rating action on Coventry Building Society was on April 14, 2009, when Moody's downgraded Coventry's senior debt ratings to A3 (with negative outlook), and its BFSR to C- (with negative outlook). Coventry Building Society is headquartered in UK. At December 31, 2008, it had total assets of US$25billion. The last rating action on Close Brothers was on May 12, 2009, when Moody's changed Close Brother's Bank outlook to negative in view of the increasing pressures on the bank's profitability and capital, as a result of the credit crunch. Close Brothers is headquartered in London. At July 31, 2009, it had total assets of GBP4,005 billion. The last rating action on The Co-Operative Bank was on August 3, 2009, when Moody's downgraded the bank's BFSR to D+, following the merger with Britannia Building Society. The Co-Operative Bank is headquartered in Manchester. At January 10, 2009, it had total assets of GBP14,964 billion. The last rating action on Clydesdale Bank was on May 12, 2009, when the bank's senior debt ratings were downgraded to A1 (with negative outlook), BFSR was downgraded to C- (with stable outlook) and subordinated debt ratings were downgraded to A3. Clydesdale is headquartered in UK. At September 30, 2009, it had total assets of US$68billion. The last rating action on ICICI Bank UK Plc was on November 3, 2008, when Moody's downgraded the bank's senior debt ratings to Baa2 (with stable outlook), subordinated debt to Baa3 and junior subordinated debt to Ba2. ICICI Bank UK Plc is headquartered in London, UK. At March 31, 2009, it had total assets of US$7billion. OODLES LOVE: Creditors Meeting Set for February 23 -------------------------------------------------- In a notice published on February 11, 2010, Brian Walsh, director of Oodles Love Noodles Ltd. said that a meeting of creditors of the company will be held at 11:00 a.m. on February 23, 2010, at the offices of: James B Kennedy & Co 22 Lower Windsor Avenue Belfast, BT9 7DW Northern Ireland A list of names and addresses of the company's creditors may be inspected free of charge at the offices of James B Kennedy & Co, on the two business days preceding the meeting. Creditors wishing to vote at the meeting must (unless they re individual creditors attending in person) lodge their proxies at the offices of James B Kennedy & Co no later than noon on February 22, 2010. PORTSMOUTH FOOTBALL: Vantis Probes Into Financial Status -------------------------------------------------------- Tariq Panja at Bloomberg News reports that business recovery group Vantis Plc says its findings will be "instrumental" in Portsmouth Football Club's attempt to avoid becoming the first English Premier League soccer club to be shut down. Bloomberg relates London-based Vantis's executive director Nigel Hamilton-Smith said in an interview Thursday "Our findings will undoubtedly be instrumental in everyone's consideration as to what is to happen with the club going forward". According to Bloomberg, team spokesman Gary Double said Vantis started its investigation into Portsmouth finances on Feb. 9, a day before its appearance at the bankruptcy court. The firm is also involved in liquidating the collapsed Stanford International Bank Ltd., Bloomberg discloses. As reported by the Troubled Company Reporter-Europe on Feb. 12, 2010, Bloomberg said Portsmouth on Wednesday got a seven-day extension from a U.K. court to stave off the tax authorities' attempt to force the team out of business. Bloomberg disclosed the club was given a week to provide a detailed financial statement after a court hearing Wednesday in London. According to Bloomberg, the U.K. revenue service was threatening to close the team because of about GBP7.4 million (US$11.7 million) in unpaid sales taxes, and also said Portsmouth owed a further GBP4.7 million in employment tax. Bloomberg said if Portsmouth can't convince Her Majesty's Revenue and Customs it has sufficient funds to pay off the debts it may become the first Premier League club to be wound up at the next hearing, on the earliest date possible after Feb. 19. Cash Flow Issue Bloomberg notes High Court Registrar Derrett said Portsmouth, whose last set of financial results showed sales of GBP70.5 million for the year ending May 31, 2008, appeared to be "trading while insolvent". "The company have identified that they have a cash flow issue," Bloomberg quoted Mr. Hamilton-Smith as saying. "That's clear because they are not paying their debts. They need to fully understand what the operating issues are and the funding requirement going forward." Bloomberg recalls Portsmouth's lawyer Nigel Hood said in court that Vantis needed at least 21 days to provide a detailed account of the club's financial status. Mr. Hamilton-Smith, as cited by Bloomberg, said the work could be done within the timeframe demanded by the court. Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/-- operates Portsmouth FC, a professional soccer team that plays in the English Premier League. Established in 1898, the club boasts two FA Cups, its last in 2008, and two first division championships. Portsmouth FC's home ground is at Fratton Park; the football team is known to supporters as Pompey. Dubai businessman Sulaiman Al-Fahim purchased the club from Alexandre Gaydamak in 2009. A French businessman of Russian decent, Gaydamak had controlled Portsmouth Football Club since 2006. PRESBYTERIAN MUTUAL: Some Savers Not Entitled to GBP20MM Income --------------------------------------------------------------- BBC News reports that Mr. Justice Deeney has ruled that some savers in the Presbyterian Mutual Society are not entitled to income from assets it has realized in the past two years. According to the report, the ruling said that those who saved GBP20,000 or less could not be classed as creditors. The report relates the judge said they are not entitled to share in any of the GBP20 million of income the society has generated since it went into administration in 2008. The collapse of the society affected more than 10,000 savers, the report discloses. The mutual scheme was not entitled to any government guarantee, putting at risk money people had saved in it, the report states. A spokesperson for the administrators, Arthur Boyd and Company, said they would study the judgment, the report notes. Presbyterian Mutual Society is a Belfast-based mutual society with around 9,500 investors, most of whom are members of the Presbyterian Church in Ireland. QPODS FLATPACK: High Court Orders Liquidation --------------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Qpods Flatpack Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: 112 Battery Road Coagh Cookstown, BT80 0HW Northern Ireland QPODS UK: High Court Orders Liquidation ----------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Qpods UK Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: 112 Battery Road Coagh Cookstown, BT80 0HW Northern Ireland SELHURST PARK: In Administration; PwC Appointed ----------------------------------------------- Peter Spratt, Bruce Cartwright and Laurie Manson of PricewaterhouseCoopers LLP were appointed as Joint Administrators to the freehold company for Selhurst Park, home of Crystal Palace FC, on Friday, February 12, 2010. The move follows the appointment of the Administrators to various companies within the Rock Group* in May 2009. This included a company that owned shares in Selhurst Park Limited, the company owning the freehold of the ground and stands where Crystal Palace football club play their football in the Championship. With the football club also placed into administration two weeks ago with The P&A Partnership in Sheffield, the Administrators anticipate working closely together in the hope that a buyer for both assets can be found at the same time. Placed into administration two weeks ago with The P&A Partnership in Sheffield, the Administrators anticipate working closely together in the hope that a buyer for both assets can be found at the same time. Barry Gilbertson, specialist real estate partner at PricewaterhouseCoopers LLP, explained: "Selhurst Park and the Club play an integral part in the local community and we are sensitive to their concerns at this time. We are keen to find an effective solution for Crystal Palace, and recognize that any new buyer of the Club would probably prefer to own the freehold of the ground, Selhurst Park. "At present, the Club leases the ground and the stands, which is quite an unusual situation in the English football league. There is undoubtedly a marriage-value from putting together the two halves of the whole. I would like to stress however, that while this is one option, we will, of course, consider alternative approaches from interested parties. "We fully intend to market the asset widely to give every possible buyer, and all the existing stakeholders, such as the Crystal Palace supporters and the CPFC Ambassadors Club, the chance to get involved in the future of Selhurst Park." Administrator, Laurie Manson, agreed: "We are more than willing to consider any viable option. If the new owner of the Club wants to continue to lease the ground and stands for example, then we will enter into negotiations to create a new lease on commercial market terms. There could also be an opportunity to renegotiate the current lease, which was created in a sale and leaseback transaction between the previous owners of the companies." * Peter Spratt, Bruce Cartwright partners and Laurie Manson of PricewaterhouseCoopers LLP were appointed as Joint Administrators to Rock Joint Ventures Limited, Rock Investment Holdings, Birchridge Limited, and Rock Op Limited on May 28, 2009. The companies and their subsidiaries have an investment portfolio of industrial, office and retail properties together with development sites in the UK and in the New York, USA. SKIPTON BUILDING: Moody's Cuts PIBS Rating to 'B1' From 'Ba3' ------------------------------------------------------------- Moody's Investors Service concluded its review on the ratings of certain UK hybrid securities, in line with its revised "Guidelines for Rating Bank Hybrids and Subordinated Debt" published in November 2009. This resulted primarily in a number of downgrades for hybrid securities ratings of UK banks, thus concluding the review for possible downgrade that began on November 18th, 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the subordinated debt holders as well as the senior creditors. Contrary to this expectation -- and to the past behavior of most governments -- the systemic support for these instruments has not been forthcoming in many cases during this crisis. In the UK this change in assumptions was already reflected in the removal of systemic support from subordinated and hybrid instruments from UK bank ratings in April 2009. This followed the introduction of the 2009 Banking Act in February 2009, which provided broad powers for allowing losses to be absorbed by hybrid debt holders through a good bank/ bad bank structure. The revised hybrid ratings guidelines that were published in November 2009 further widen the possible notching on a hybrid's rating that is based on the instrument's features. Rating Action in Detail The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment. The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. The characteristics of UK junior subordinated debt instruments and non-cumulative preference shares are: * The junior subordinated debt is perpetual, ranks subordinated to senior debt in liquidation and allows the issuer to optionally defer coupon payments subject to a dividend pusher language. There is also mandatory deferral tied to the breach of solvency triggers, which is considered a "weak" trigger as it is unlikely to occur outside of a winding up of the institution. Any deferred interest is cumulative. For the UK, unless stated otherwise, junior subordinated debt instruments are rated at the Adjusted BCA level minus two notches. The additional notch reflects the junior subordinated claim as well as the risk of a missed coupon payment and the timeliness of payments, even if accumulated coupons are repaid. * The loss absorption for non-cumulative preferred securities while the issuer remains a going concern primarily stems from the non-cumulative coupon skip feature, which is mandatory upon breach of minimum regulatory capital requirements or generally upon regulatory intervention, or at the option of the issuer if no dividends are paid. Together with their deeply subordinated claim in liquidation, this means that, unless stated otherwise, these instruments are rated to the standard Adjusted BCA minus three notches. Similar to junior subordinated debt, these instruments are also exposed to principal losses in a going concern scenario, which is captured in the three notches. * Similar to preference shares above, Permanent Interest Bearing Shares in this rating action are perpetual non-cumulative instruments issued by building societies and are at the bottom of the capital structure. Their coupon skip mechanism is mandatory with respect to regulatory capital adequacy requirements and optional if interest or dividend payments on share investments have not been made. Their loss absorption is similar to non-cumulative preference shares for banks explained above; therefore they are also rated at Adjusted BCA minus three notches. The rating actions on each UK banks and building societies are detailed below: 1) Barclays Bank Plc The Adjusted BCA for Barclays Bank is A3, which is the same level as its unadjusted BCA. These securities issued by Barclays Bank were affected by this rating action: * Junior subordinated debt and junior subordinated EMTN program ratings (Upper Tier 2) downgraded to Baa2 from Baa1 * Non-cumulative preferred securities downgraded to Baa3 from Baa2 The outlook for all the affected instruments is negative, in line with the negative outlook for Barclays Bank's C BFSR and corresponding A3 BCA. 2) HSBC Holdings Plc The Adjusted BCA for HSBC Holdings Plc is Aa3, which is the same level as its unadjusted BCA. These securities issued by HSBC Holdings Plc were affected by this rating action: * Non-cumulative preferred securities (Tier 1) downgraded to A3 from A1/A2 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Holdings Plc's Aa3 BCA 3) HSBC Bank Plc The Adjusted BCA for HSBC Bank Plc is A1, which is one notch above its unadjusted BCA of A2. These securities issued by HSBC Bank Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) downgraded to A3 from A2, * Non-cumulative preferred securities (Tier 1) downgraded to Baa1 The outlook for all the affected instruments is negative, in line with the negative outlook for HSBC Bank Plc's C+ BFSR and corresponding A2 BCA 4) Nationwide Building Society The Adjusted BCA for Nationwide is Baa2, which is the same level as its unadjusted BCA. These securities issued by Nationwide were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Nationwide Building Society's C- BFSR and the corresponding Baa2 BCA. 5) Skipton Building Society The Adjusted BCA for Skipton is Ba1, which is the same level as its unadjusted BCA. These securities issued by Skipton were affected by this rating action: * PIBS rating was downgraded to B1 from Ba3 The outlook for all the affected instruments is negative, in line with the negative outlook for Skipton Building Society's D+ BFSR and corresponding Ba1 BCA. 6) Coventry Building Society The Adjusted BCA for Coventry is Baa2, which is the same level as its unadjusted BCA. These securities issued by Coventry were affected by this rating action: * PIBS rating was downgraded to Ba2 from Ba1. The outlook for all the affected instruments is negative, in line with the negative outlook for Coventry Building Society's C- BFSR and the corresponding Baa2 BCA. 7) Close Brothers Ltd The Adjusted BCA for Close Brothers Ltd. is A2, which is the same level as its unadjusted BCA. These securities issued by Close Brothers Ltd. were affected by this rating action: * The Junior subordinated EMTN program rating (Upper Tier 2) was downgraded to Baa1 from A3. The outlook for all the affected instruments is negative, in line with the negative outlook for Close Brothers Ltd. C+ BFSR and corresponding A2 BCA. 8) The Co-operative Bank The Adjusted BCA for The Co-operative Bank is Baa3, which is the same level as its unadjusted BCA. The junior subordinated debt (Upper Tier 2) of The Co-Operative Bank was upgraded to Ba2 from Ba3. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for all the affected instruments is stable, in line with the stable outlook for The Co-Operative Bank's D+ BFSR and corresponding Baa3 BCA. 9) Clydesdale The Adjusted BCA for Clydesdale is A2, which is the same level as its unadjusted BCA The junior subordinated EMTN program rating (Upper Tier 2) was confirmed at A3 (negative outlook) as the terms and conditions of the program mean that there is no optional deferral right. Therefore the risk of this instrument is restricted to its subordinated ranking in liquidation. 10) ICICI Bank UK Plc The Adjusted BCA for ICICI Bank is Baa2, which is three notches above its unadjusted BCA, reflecting uplift from parental support These securities issued by ICICI Bank UK Plc were affected by this rating action: * Junior subordinated debt (Upper Tier 2) was upgraded to Ba1 from Ba2. The upgrade reflects Moody's revised notching guidelines for hybrid securities and in particular for junior subordinated debt with cumulative features which is now generally positioned two notches below the adjusted BCA. The outlook for the affected rating class instruments is stable, in line with the stable outlook for ICICI Bank UK Plc's D BFSR and corresponding Baa2 BCA. The junior subordinated and Tier 1 debt of RBS and Lloyds are unaffected by this announcement, as Moody's have already taken rating actions to incorporate the expected coupon skip on certain instruments following the European Commission requirement to defer coupons as a result of State Aid received (May Pay securities), and have already applied the revised methodology to instruments not expected to skip coupons due to dividend pusher language (Must Pay or potential Must Pay securities). The last rating action on Barclays Bank Plc was on February 1, 2009, when Moody's downgraded Barclay's senior debt ratings to Aa3 (with stable outlook) and BFSR to C (with negative outlook). Barclays is headquartered in London, UK. At June 30, 2009, it had total assets of GBP1,545 billion. The last rating actions on HSBC Holdings Plc and HSBC Bank plc were on April 9, 2009, when Moody's downgraded the subordinated debt ratings of HSBC Holdings Plc to A1 from Aa3 and its hybrid securities to A2 from A1 (with a negative outlook); in the same rating action Moody's downgraded HSBC Bank Plc' subordinated debt rating to A2 from Aa3, and hybrid debt to A3 from A1 (with a negative outlook). HSBC Holdings is headquartered in London, UK. At June 30, 2009, it had total assets of US$2,422 billion. The last rating action on Nationwide Building Society was on April 14, 2009, when Moody's downgraded Nationwide's senior debt ratings to Aa3 (with stable outlook), and its BFSR to C- (with negative outlook). Nationwide Building Society is headquartered in UK. At September 30, 2009, it had total assets of US$318billion. The last rating action on Skipton Building Society was on April 14, 2009, when Moody's downgraded Skipton's senior debt ratings to Baa1 (with negative outlook), BFSR to D+ (with negative outlook) and dated subordinated debt to Ba2. Skipton Building Society is headquartered in UK. At June 30, 2009, it had total assets of US$25billion. The last rating action on Coventry Building Society was on April 14, 2009, when Moody's downgraded Coventry's senior debt ratings to A3 (with negative outlook), and its BFSR to C- (with negative outlook). Coventry Building Society is headquartered in UK. At December 31, 2008, it had total assets of US$25billion. The last rating action on Close Brothers was on May 12, 2009, when Moody's changed Close Brother's Bank outlook to negative in view of the increasing pressures on the bank's profitability and capital, as a result of the credit crunch. Close Brothers is headquartered in London. At July 31, 2009, it had total assets of GBP4,005 billion. The last rating action on The Co-Operative Bank was on August 3, 2009, when Moody's downgraded the bank's BFSR to D+, following the merger with Britannia Building Society. The Co-Operative Bank is headquartered in Manchester. At January 10, 2009, it had total assets of GBP14,964 billion. The last rating action on Clydesdale Bank was on May 12, 2009, when the bank's senior debt ratings were downgraded to A1 (with negative outlook), BFSR was downgraded to C- (with stable outlook) and subordinated debt ratings were downgraded to A3. Clydesdale is headquartered in UK. At September 30, 2009, it had total assets of US$68billion. The last rating action on ICICI Bank UK Plc was on November 3, 2008, when Moody's downgraded the bank's senior debt ratings to Baa2 (with stable outlook), subordinated debt to Baa3 and junior subordinated debt to Ba2. ICICI Bank UK Plc is headquartered in London, UK. At March 31, 2009, it had total assets of US$7billion. SPENCER BYRNE: High Court Orders Liquidation -------------------------------------------- In a notice published on February 11, 2010, in the Belfast Telegraph, the official receiver of Spencer Byrne Limited said that on February 4, 2010, the High Court of Justice in Northern Ireland ordered the winding up of the company. The registered office of the company is at: Flannigan Edmunds Bannon 2 Donegall Square East Belfast, BT1 5HB Northern Ireland =============== X X X X X X X X =============== * BOND PRICING: For the Week February 8 to February 12, 2010 ------------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- HAA-BANK INTL AG 5.250 10/27/2015 EUR 74.00 KOMMUNALKREDIT 4.440 12/20/2030 EUR 63.88 KOMMUNALKREDIT 4.900 6/23/2031 EUR 67.88 OESTER VOLKSBK 5.450 8/2/2019 EUR 58.25 OESTER VOLKSBK 4.170 7/29/2015 EUR 49.88 OESTER VOLKSBK 5.270 2/8/2027 EUR 93.97 RAIFF ZENTRALBK 4.500 9/28/2035 EUR 89.71 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 18.69 BULGARIA -------- PETROL AD-SOFIA 8.375 10/26/2011 EUR 48.73 CZECH REPUBLIC -------------- CZECH REPUBLIC 2.750 1/16/2036 JPY 77.05 DENMARK ------- DANMARK SKIBSKRD 2.000 11/15/2024 DKK 73.42 DENMARK ------- MUNI FINANCE PLC 1.000 2/27/2018 AUD 63.85 MUNI FINANCE PLC 0.500 9/24/2020 CAD 62.33 MUNI FINANCE PLC 0.250 6/28/2040 CAD 21.52 MUNI FINANCE PLC 1.000 10/30/2017 AUD 65.01 MUNI FINANCE PLC 0.500 3/17/2025 CAD 48.07 MUNI FINANCE PLC 1.000 11/21/2016 NZD 71.18 STORA ENSO OYJ 7.250 4/15/2036 USD 75.18 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 14.58 ALCATEL SA 4.750 1/1/2011 EUR 16.07 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.15 ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.55 ATARI SA 4.000 4/1/2020 EUR 0.80 ATOS ORIGIN SA 2.500 1/1/2016 EUR 49.96 CALYON 6.000 6/18/2047 EUR 45.98 CAP GEMINI SOGET 3.500 1/1/2014 EUR 41.39 CAP GEMINI SOGET 1.000 1/1/2012 EUR 42.63 CLUB MEDITERRANE 4.375 11/1/2010 EUR 48.74 CMA CGM 5.500 5/16/2012 EUR 63.68 CMA CGM SA 7.250 2/1/2013 USD 63.78 DEXIA MUNI AGNCY 4.680 3/9/2029 CAD 74.24 DEXIA MUNI AGNCY 1.000 12/23/2024 EUR 60.81 EURAZEO 6.250 6/10/2014 EUR 56.55 FAURECIA 4.500 1/1/2015 EUR 18.39 GROUPE VIAL 2.500 1/1/2014 EUR 18.52 MAUREL ET PROM 7.125 7/31/2014 EUR 18.36 NEXANS SA 4.000 1/1/2016 EUR 63.29 PEUGEOT SA 4.450 1/1/2016 EUR 28.71 PUBLICIS GROUPE 3.125 7/30/2014 EUR 35.73 PUBLICIS GROUPE 1.000 1/18/2018 EUR 45.74 RHODIA SA 0.500 1/1/2014 EUR 43.36 SOC AIR FRANCE 2.750 4/1/2020 EUR 20.49 SOITEC 6.250 9/9/2014 EUR 10.34 TEM 4.250 1/1/2015 EUR 55.01 THEOLIA 2.000 1/1/2014 EUR 13.90 VALEO 2.375 1/1/2011 EUR 46.20 ZLOMREX INT FIN 8.500 2/1/2014 EUR 34.50 ZLOMREX INT FIN 8.500 2/1/2014 EUR 35.00 GERMANY ------- DEUTSCHE BK LOND 1.000 3/31/2027 USD 46.20 ESCADA AG 7.500 4/1/2012 EUR 18.14 EUROHYPO AG 5.000 5/15/2027 EUR 93.50 GOTHAER ALLG VER 5.527 9/29/2026 EUR 77.98 HSH NORDBANK AG 4.375 2/14/2017 EUR 66.33 HYPOREAL INTL AG 4.560 3/28/2021 EUR 71.46 HYPOREAL INTL AG 4.675 9/13/2021 EUR 71.29 HYPOREAL INTL AG 4.770 8/11/2021 EUR 72.15 KFW 5.000 10/17/2035 EUR 73.81 L-BANK FOERDERBK 0.500 5/10/2027 CAD 43.51 LB BADEN-WUERTT 2.500 1/30/2034 EUR 62.96 LB BADEN-WUERTT 5.250 10/20/2015 EUR 34.47 RENTENBANK 1.000 3/29/2017 NZD 70.68 SOLON AG SOLAR 1.375 12/6/2012 EUR 38.76 VAC FINANZ 9.250 4/15/2016 EUR 50.00 VAC FINANZ 9.250 4/15/2016 EUR 50.00 GREECE ------ HELLENIC REP I/L 2.300 7/25/2030 EUR 71.82 HELLENIC REPUB 3.000 4/30/2019 JPY 72.63 YIOULA GLASSWORK 9.000 12/1/2015 EUR 55.25 YIOULA GLASSWORK 9.000 12/1/2015 EUR 56.90 HUNGARY ------- REP OF HUNGARY 2.110 10/26/2017 JPY 73.20 IRELAND ------- ALLIED IRISH BKS 5.250 3/10/2025 GBP 64.69 ALLIED IRISH BKS 5.625 11/29/2030 GBP 62.44 DEPFA ACS BANK 5.250 3/31/2025 CAD 73.60 DEPFA ACS BANK 5.125 3/16/2037 USD 74.62 DEPFA ACS BANK 0.500 3/3/2025 CAD 30.45 DEPFA ACS BANK 4.900 8/24/2035 CAD 62.12 DEPFA ACS BANK 5.125 3/16/2037 USD 71.54 IRISH NATIONWIDE 13.000 8/12/2016 GBP 75.23 ONO FINANCE II 8.000 5/16/2014 EUR 73.75 ONO FINANCE II 8.000 5/16/2014 EUR 74.40 UT2 FUNDING PLC 5.321 6/30/2016 EUR 66.00 ITALY ----- COMUNE DI MILANO 4.019 6/29/2035 EUR 74.60 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 32.22 BREEZE 4.524 4/19/2027 EUR 83.31 CRC BREEZE 5.290 5/8/2026 EUR 74.37 GLOBAL YATIRIM H 9.250 7/31/2012 USD 67.00 HELLAS III 8.500 10/15/2013 EUR 49.50 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 59.77 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 59.25 NELL AF SARL 8.375 8/15/2015 USD 18.02 NETHERLANDS ----------- AI FINANCE B.V. 10.875 7/15/2012 USD 61.13 ALB FINANCE BV 8.750 4/20/2011 USD 31.99 ALB FINANCE BV 9.000 11/22/2010 USD 31.99 ALB FINANCE BV 9.250 9/25/2013 USD 31.95 ARPENI PR INVEST 8.750 5/3/2013 USD 56.13 ARPENI PR INVEST 8.750 5/3/2013 USD 56.13 ASTANA FINANCE 9.000 11/16/2011 USD 23.97 BK NED GEMEENTEN 0.500 2/24/2025 CAD 47.89 BK NED GEMEENTEN 0.500 6/27/2018 CAD 71.31 BLT FINANCE BV 7.500 5/15/2014 USD 68.50 BLT FINANCE BV 7.500 5/15/2014 USD 69.50 BRIT INSURANCE 6.625 12/9/2030 GBP 72.13 ELEC DE CAR FIN 8.500 4/10/2018 USD 65.70 EM.TV FINANCE BV 5.250 5/8/2013 EUR 5.20 IVG FINANCE BV 1.750 3/29/2017 EUR 66.24 NATL INVESTER BK 25.983 5/7/2029 EUR 37.02 NED WATERSCHAPBK 0.500 3/11/2025 CAD 46.73 Q-CELLS INTERNAT 5.750 5/26/2014 EUR 54.76 Q-CELLS INTERNAT 1.375 2/28/2012 EUR 53.06 RBS NV EX-ABN NV 6.000 3/16/2035 EUR 69.24 TEMIR CAPITAL 9.000 11/24/2011 USD 17.75 TEMIR CAPITAL 9.500 5/21/2014 USD 26.50 TEMIR CAPITAL 9.500 5/21/2014 USD 27.88 TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.01 TURANALEM FIN BV 8.250 1/22/2037 USD 38.40 TURANALEM FIN BV 7.750 4/25/2013 USD 37.40 TURANALEM FIN BV 8.000 3/24/2014 USD 41.00 TURANALEM FIN BV 7.875 6/2/2010 USD 37.50 TURANALEM FIN BV 8.000 3/24/2014 USD 36.95 TURANALEM FIN BV 8.500 2/10/2015 USD 37.73 TURANALEM FIN BV 6.250 9/27/2011 EUR 37.72 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 36.50 NORSKE SKOGIND 7.000 6/26/2017 EUR 62.75 POLAND ------ POLAND-REGD-RSTA 2.810 11/16/2037 JPY 63.02 REP OF POLAND 2.648 3/29/2034 JPY 68.59 REP OF POLAND 2.620 11/13/2026 JPY 72.15 SPAIN ----- BANCAJA EMI SA 2.755 5/11/2037 JPY 68.25 BBVA SUB CAP UNI 2.750 10/22/2035 JPY 74.10 GENERAL DE ALQUI 2.750 8/20/2012 EUR 57.05 MINICENTRALES 4.810 11/29/2034 EUR 62.30 SWEDEN ------ SWEDISH EXP CRED 0.500 12/17/2027 USD 47.93 SWITZERLAND ----------- CYTOS BIOTECH 2.875 2/20/2012 CHF 52.82 UBS AG JERSEY 9.000 3/9/2010 USD 57.04 UBS AG JERSEY 9.000 5/18/2010 USD 56.69 UBS AG JERSEY 9.000 6/11/2010 USD 55.38 UBS AG JERSEY 9.000 7/2/2010 USD 55.80 UBS AG JERSEY 9.000 7/19/2010 USD 55.60 UBS AG JERSEY 9.350 7/27/2010 USD 56.20 UBS AG JERSEY 9.000 8/13/2010 USD 60.25 UBS AG JERSEY 9.500 8/31/2010 USD 62.00 UBS AG JERSEY 10.000 10/25/2010 USD 62.00 UBS AG JERSEY 13.900 1/31/2011 USD 36.28 UBS AG JERSEY 14.640 1/31/2011 USD 38.44 UBS AG JERSEY 16.170 1/31/2011 USD 13.75 UBS AG JERSEY 10.000 2/11/2011 USD 60.85 UBS AG JERSEY 15.250 2/11/2011 USD 12.32 UBS AG JERSEY 8.250 2/28/2011 USD 68.94 UBS AG JERSEY 12.800 2/28/2011 USD 35.28 UBS AG JERSEY 11.330 3/18/2011 USD 18.23 UBS AG JERSEY 11.400 3/18/2011 USD 25.81 UBS AG JERSEY 10.990 3/31/2011 USD 30.75 UBS AG JERSEY 16.160 3/31/2011 USD 44.06 UBS AG JERSEY 10.820 4/21/2011 USD 22.16 UBS AG JERSEY 11.030 4/21/2011 USD 21.49 UBS AG JERSEY 10.650 4/29/2011 USD 16.35 UBS AG JERSEY 10.500 6/16/2011 USD 72.18 UBS AG JERSEY 13.000 6/16/2011 USD 50.53 UBS AG JERSEY 10.280 8/19/2011 USD 33.99 UBS AG JERSEY 10.360 8/19/2011 USD 52.79 UBS AG JERSEY 11.150 8/31/2011 USD 37.74 UBS AG JERSEY 9.350 9/21/2011 USD 66.49 UBS AG JERSEY 3.220 7/31/2012 EUR 55.72 UBS AG LONDON 1.500 6/19/2018 JPY 71.69 UNITED KINGDOM -------------- ALPHA CREDIT GRP 2.940 3/4/2035 JPY 74.56 AMDOCS LIMITED 0.500 3/15/2024 USD 74.00 BARCLAYS BK PLC 8.550 1/23/2012 USD 10.82 BARCLAYS BK PLC 10.350 1/23/2012 USD 25.77 BARCLAYS BK PLC 11.650 5/20/2010 USD 41.40 BARCLAYS BK PLC 7.610 6/30/2011 USD 54.37 BARCLAYS BK PLC 10.600 7/21/2011 USD 42.09 BRADFORD&BIN BLD 7.625 2/16/2049 GBP 14.98 BRADFORD&BIN BLD 5.750 12/12/2022 GBP 16.35 BROADGATE FINANC 5.098 4/5/2033 GBP 74.54 CITY OF KIEV 8.000 11/6/2015 USD 73.81 CITY OF KIEV 8.000 11/6/2015 USD 74.03 EFG HELLAS PLC 2.760 5/11/2035 JPY 69.96 ENTERPRISE INNS 6.375 9/26/2031 GBP 74.39 ENTERPRISE INNS 6.500 12/6/2018 GBP 85.03 F&C ASSET MNGMT 6.750 12/20/2026 GBP 67.62 HBOS PLC 4.500 3/18/2030 EUR 70.42 INEOS GRP HLDG 7.875 2/15/2016 EUR 59.25 INEOS GRP HLDG 8.500 2/15/2016 USD 60.14 INEOS GRP HLDG 8.500 2/15/2016 USD 60.11 INEOS GRP HLDG 7.875 2/15/2016 EUR 59.48 LOUIS NO1 PLC 10.000 12/1/2016 EUR 70.42 MARSTONS ISSUER 5.641 7/15/2035 GBP 74.68 NATL GRID GAS 1.771 3/30/2037 GBP 45.41 NATL GRID GAS 1.754 10/17/2036 GBP 46.69 NBG FINANCE PLC 2.755 6/28/2035 JPY 69.70 NOMURA BANK INTL 0.800 12/21/2020 EUR 58.82 NORTHERN ROCK 9.375 10/17/2021 GBP 62.22 NORTHERN ROCK 4.574 1/13/2015 GBP 57.21 NORTHERN ROCK 5.750 2/28/2017 GBP 54.21 OJSC BANK NADRA 9.250 6/28/2010 USD 22.50 PRINCIPALITY BLD 5.375 7/8/2016 GBP 62.74 PRIVATBANK 8.750 2/9/2016 USD 78.75 PUNCH TAVERNS 6.468 4/15/2033 GBP 70.39 SPIRIT ISSUER 5.472 12/28/2028 GBP 71.83 TXU EASTERN FNDG 6.450 5/15/2005 USD 2.00 UNIQUE PUB FIN 6.464 3/30/2032 GBP 61.87 UNIQUE PUB FIN 7.395 3/28/2024 GBP 74.30 WESSEX WATER FIN 1.369 7/31/2057 GBP 21.22 ********* 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 * * *