/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100422.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, April 22, 2010, Vol. 11, No. 078 Headlines B U L G A R I A TRADE LEAGUE: Bribery, Blackmail Blamed for Bankruptcy C Z E C H R E P U B L I C * CZECH REPUBLIC: Ceska Sporitelna Bank Lent Funds Pre-Bankruptcy F R A N C E RENAULT SA: Ends Joint Venture with India's Mahindra G E R M A N Y DEUTSCHE LUFTHANSA: Cancels Jet Fuel Contracts for Fleet IKB DEUTSCHE: Mulls Lawsuit v. Goldman Sachs Over CDO Losses LEAGUE 2004-1: S&P Affirms Rating on Class E-1 Notes at 'BB' TUI AG: Tui Travel to Raise GBP550 Mil. Through Convertible Bond I R E L A N D ANGLO IRISH: Fails to Obtain Summary Judgment Orders v. Daly ELAN CORP: May Split Into Two Separate Businesses SMURFIT KAPPA: Inks Asset Swap Agreement with Mondi Group SYNCREON HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating SYNCREON HOLDINGS: S&P Assigns 'B+' Corporate Credit Rating I T A L Y MARIELLA BURANI: Commissioner Calls for Special Administration K A Z A K H S T A N BTA BANK: Int'l Creditors Will Have Investments Slashed By 56% L U X E M B O U R G LUXALPHA SICAV: SEC, FINRA Liable for Fund Losses, Suit Says REYNOLDS GROUP: Moody's Affirms 'B2' Corporate Family Rating REYNOLDS GROUP: S&P Affirms 'B+' Long-Term Corporate Credit Rating N E T H E R L A N D S GENMED HOLDING: Meyler & Company Raises Going Concern Doubt ROYAL INVEST: Meyler & Company Raises Going Concern Doubt R O M A N I A * Fitch Gives Stable Outlook on Bucharest; Keeps 'BB+' Rating R U S S I A FOREIGN ECONOMIC: Moody's Lifts Long-Term Deposit Rating to B2 S P A I N OBRASCON HUARTE: Fitch Assigns 'BB-' Senior Unsecured Rating S W I T Z E R L A N D SES SOLAR: Posts US$1.2 Million Net Loss in 2009 U K R A I N E UKREXIMBANK JSC: Moody's Assigns 'B1' Senior Unsec. Loan Notes U N I T E D K I N G D O M EMI GROUP: Loses Distribution Rights to McCartney's Catalogue GAMEGRID: In Liquidation; Three Sites Sold RESLOC UK: S&P Affirms 'CCC' Ratings on Two Classes of Notes ROYAL BANK: To Await Outcome of U.S. Probe Into Goldman Sachs VIRGIN MEDIA: Fitch Upgrades Issuer Default Rating to 'BB' * UK: Insolvency Industry Saved Nearly 2 Million Jobs in 2009 * UK: Administrations Down 46% in 1st Qtr. 2010, Deloitte Says X X X X X X X X * EUROPE: Siemens CEO Warns of Insolvencies in Industrial Sector * Upcoming Meetings, Conferences and Seminars ********* =============== B U L G A R I A =============== TRADE LEAGUE: Bribery, Blackmail Blamed for Bankruptcy ------------------------------------------------------ Novinite.com reports that pressure by Emil Rainov, Bulgaria's former deputy health minister, has resulted in the bankruptcy of Trade League. According to the report, Toni Vekov, CEO of Trade League, conceded in an interview for BNR on Tuesday, that Mr. Rainov had asked the company for a bribe. The report recalls in 2005-2008, Mr. Rainov, had demanded that the company pay him two installments of BGN17 million and BGN11 million each, as an influence trade-off. The report relates Mr. Rainov was on Monday accused of trading in influence while two charges of abuse of power were raised against the acting head of the National Health Insurance Fund, Zheni Nacheva. Veladin Bitolski, the former head of the Cabinet of Bulgaria's ex Prime Minister Sergey Stanishev, was also charged with bribery on Monday, the report notes. He was accused of acting as an accomplice to Emil Rainov in the blackmail of Trade League, the report states. Trade League is one of Bulgaria's biggest distributors of medicine. =========================== C Z E C H R E P U B L I C =========================== * CZECH REPUBLIC: Ceska Sporitelna Bank Lent Funds Pre-Bankruptcy ----------------------------------------------------------------- Lenka Ponikelska at Bloomberg News, citing Euro.cz, reports that Ceska Sporitelna AS, a Czech commercial bank, provided loans worth about CZK2 billion (US$106 million) to companies that later filed for bankruptcy. According to Bloomberg, the newspaper said the amount represents about 0.4% of total loans provided in 2009. =========== F R A N C E =========== RENAULT SA: Ends Joint Venture with India's Mahindra ---------------------------------------------------- Joe Leahy at The Financial Times reports that India's Mahindra & Mahindra and Renault have ended their equity joint venture to make sedans for the domestic market. According to the FT, the partnership between one of India's biggest automotive manufacturers and the global carmaker was set up to sell Renault's Logan but the car failed to take off after its length put it into a higher tax bracket than rivals in the same category. "The parties have in principle agreed that M&M will take over the operations of the company," the FT quoted Mahindra as saying on Friday. "Renault will continue to support M&M and the product through a license agreement and supply of key components, including the engine and transmission." The FT notes Mahindra said on Friday that it would buy out Renault's stake and "localize" the car over the next 18 months, phasing out the use of the Renault name. About Renault SA Renault SA -- http://www.renault.com/-- is a France-based company primarily engaged in the manufacture of automobiles and related services. The Company has two main areas of business activity: the Automobile division, which handles the design, manufacture and marketing of passenger cars and commercial vehicles, under Renault, Renault Samsung Motors and Dacia brands, and the Sales Financing division, which provides financial and commercial services related to the Company's sales activities, and is comprised of RCI Banque and its subsidiaries. The Company operates worldwide via a group of subsidiaries and dependant companies, including wholly owned Renault SAS, 99.43%-owned Dacia, 44.3%-owned Nissan Motor and 20.7%-owned AB Volvo, among others. * * * Renault SA continues to carry long- and short-term corporate credit and debt ratings of 'BB/B' from Standards & Poor's Ratigns Services with stable outlook. The ratings were lowered to their current level from 'BBB-/ A-3' in June 2009. As reported by the Troubled Company Reporter-Europe on June 23, 2009, S&P said Renault's financial profile was already hit by the large increase in debt in 2008, and credit measures were weak compared with what S&P generally considered to be commensurate with a 'BBB-' rating. S&P said that the company's financial metrics were likely to deteriorate further and would probably not return in the medium term to levels S&P considered consistent with the previous rating. "Our downgrade of Renault reflects our view that auto demand is likely to remain very low in Europe in 2010, due to the weak economic environment and the payback effect of the incentive schemes that several European countries have adopted to date in 2009," said Standard & Poor's credit analyst Barbara Castellano. "We believe these factors will continue to penalize Renault's profitability." Renault continues to carry a Ba1 long-term corporate family rating and senior unsecured debt rating from Moody's Investors Services with stable outlook. The company's subordinated debt carries a Ba2 rating from Moody's. ============= G E R M A N Y ============= DEUTSCHE LUFTHANSA: Cancels Jet Fuel Contracts for Fleet -------------------------------------------------------- Pilita Clark and Nikki Tait at The Financial Times report that Deutsche Lufthansa AG declared force majeure on Tuesday as it cancelled contracts for jet fuel bound for its fleet, which has been grounded for nearly six days. According to the FT, the move by the German carrier, which it made after running out of storage space, was one of the most visible signs of how the disruption is spreading to other parts of the aviation industry. Deutsche Lufthansa AG -- http://www.lufthansa.com/-- is an aviation company with operations worldwide. It operates in five business segments: Passenger Transportation, Logistics, Maintenance, Repair and Overhaul (MRO), Information Technology (IT) services and Catering. On January 22, 2008, it acquired 19% of the shares in JetBlue Airways. In October 2008, Lufthansa established an Italian company called Lufthansa Italia as it mulls to make Milan based Malpensa airport its third hub after Frankfurt and Munich. In September 2009, Austrian Airlines AG was taken over by Deutsche Lufthansa AG. Austrian Airlines will therefore become part of the Lufthansa Group as of September 2009. * * * Deutsche Lufthansa AG continues to carry a Ba1 Corporate Family Rating and Probability of Default Rating from Moody's Investors Service with stable outlook. The ratings were assigned by Moody's in September 2009. As reported by the Troubled Company Reporter-Europe on Sept. 7, 2009, Moody's said the rating action reflected predominantly its view that the very weak market conditions, with pressure on yields and volumes being reflected in the decline in operating profits in both the passenger and cargo divisions, would weaken credit metrics well beyond the parameters that Moody's had set for the previous rating category, notably for debt/EBITDA to remain below 3.5x and for RCF/Net Debt to remain above 25%. According to Moody's, the senior unsecured rating, and the rating of the senior unsecured notes of Ba1 (LGD4, 52%), at the same level as the CFR, reflected the limited amount of structural subordination of the notes within the company's capital structure. IKB DEUTSCHE: Mulls Lawsuit v. Goldman Sachs Over CDO Losses ------------------------------------------------------------ The Financial Times reports that IKB Deutsche Industriebank AG, the main investor in Goldman Sachs' controversial collateralized debt obligation deal, is looking to bring a private lawsuit against the bank. IKB, which lost nearly all of its US$150 million investment in Goldman's Abacus 2007-AC1 CDO, has approached lawyers about bringing a private case, the FT says, citing people close to the Dusseldorf-based lender. The FT relates the Goldman case relating to its deal with IKB comes as IKB's former chief executive, Stefan Ortseifen, is on trial in Germany charged with breach of trust and misleading the market over IKB's financial affairs. Probe As reported by the Troubled Company Reporter-Europe on April 21, 2010, Bloomberg News said Goldman Sachs faces a regulatory probe in Britain and scrutiny from the German government after the U.S. Securities and Exchange Commission sued the firm for fraud tied to collateralized debt obligations. Bloomberg disclosed the SEC said that in early 2007, as the U.S. housing market teetered, Goldman Sachs created and sold a CDO linked to subprime mortgages without disclosing that hedge fund Paulson & Co. helped pick the underlying securities and bet against the vehicle, known as Abacus 2007-AC1. The SEC, as cited by Bloomberg, said Goldman Sachs misled investor IKB about Paulson's role in the trade. IKB lost about US$150 million in the Abacus CDO, most of which went to Paulson, which reaped a US$1 billion profit in total from betting against the vehicle, Bloomberg said citing the SEC. Bloomberg recalled IKB became Germany's first casualty of the U.S. subprime- mortgage crisis in 2007 after its investments in asset-backed securities soured. KfW, Germany's state-owned development bank, pumped almost EUR10 billion (US$13.5 billion) into IKB in 2008 to shore up the country's banking system, Bloomberg recounted. About IKB Deutsche Industriebank IKB Deutsche Industriebank AG -- http://www.ikb.de/-- is a Germany-based banking company, which specializes in the field of long-term financing. It offers a range of financial products and services directed at medium-sized domestic as well as international companies and project partners. The Company's focuses on the two segments Corporate Customers, including domestic corporate financing, especially lending, but also product leasing and private equity; and Real Estate Customers, which provides customized financing solutions as well as related services for industrial real estate. As of March 31, 2009, it operated through direct and indirect subsidiaries, including the wholly owned IKB Capital Corporation and IKB Equity Finance GmbH, among others; its two majority owned subsidiaries; as well as two affiliated companies. The Company's subsidiaries are located in Germany, the United States, the Netherlands, Luxembourg, Austria, the Czech Republic, France, Hungary, Poland, Russia, Slovakia and Romania. * * * As reported by the Troubled Company Reporter-Europe on Sept. 21, 2009, Moody's Investors Service confirmed the Baa3 long-term debt and deposit ratings, Ba2 subordinated debt ratings and Prime-3 short-term rating of IKB Deutsche Industriebank, reflecting Moody's assessment of a very high probability of ongoing external support. The outlook on the senior and junior debt ratings remains negative. IKB's E bank financial strength rating, mapping to a stand-alone baseline credit assessment of Caa1, was affirmed, with a stable outlook. Moody's downgraded the upper Tier 2 junior subordinated instruments issued by IKB and its vehicle ProPart Funding Ltd to C from Ca, the lowest level on Moody's rating scale, and the Tier 1 instruments issued by IKB Funding Trust I & II and Capital Raising GmbH to Ca from Caa3. Moody's said the outlook on the instruments is stable. LEAGUE 2004-1: S&P Affirms Rating on Class E-1 Notes at 'BB' ------------------------------------------------------------ Standard & Poor's Ratings Services raised its credit ratings on League 2004-1 Ltd.'s class C and D notes. At the same time, S&P affirmed the ratings on the class B notes in League 2004-1 and all notes in League 2005-1 Ltd. series 1. The rating actions follow S&P's review of the transactions. League 2004-1 has benefited from deleveraging and currently has a pool factor of 12.21%. The class C and class D notes now benefit from 74.13% and 35.86% of credit enhancement, respectively, compared with 6.67% and 2.13% at closing. The extent of the upgrades have been constrained by the level of defaults S&P has seen in the transaction, which are higher than S&P's assumptions at closing. League 2005-1 series 1 has also benefited from deleveraging, but not to as great an extent. The pool factor is currently 50%. S&P has seen an increase in realized losses in recent months and this has led to draws on the reserve fund. The increase in realized losses is not due to an increase in defaults, which have remained stable, but is due to a backlog of defaulted assets that have started to be written off. There are EUR12.8 million of defaults on the book that have still to be written off, and S&P has therefore decided to affirm its ratings on all notes in the transaction despite having seen a large increase in credit enhancement. Ratings List Ratings Raised League 2004-1 Ltd. EUR390 Million Floating-Rate Credit-Linked Notes Rating ------ Class To From ----- -- ---- C AAA AA D A BBB+ Ratings Affirmed League 2004-1 Ltd. EUR390 Million Floating-Rate Credit-Linked Notes Class Rating ----- ------ B AAA League 2005-1 Ltd. EUR384.35 Million Asset-Backed Credit-Linked Notes Series 1 Class Rating ----- ------ A-1 AAA B-1 AA C-1 A D-1 BBB E-1 BB TUI AG: Tui Travel to Raise GBP550 Mil. Through Convertible Bond ---------------------------------------------------------------- Roger Blitz at The Financial Times reports that Tui Travel plans to raise GBP550 million US$844 million) through a convertible bond and new banking facilities. According to the FT, Tui Travel's convertible bond will raise GBP400 million, the coupon priced at 4.9% and maturing in seven years' time. It will convert into about 8% of Tui's share capital, the FT discloses. The conversion price has been set at 382p a share, a 33% premium over Tui's average share price from launch to pricing, the FT notes. The FT says Tui AG, the tour operator's German-based majority shareholder, will subscribe for half of the available bonds to prevent dilution of its 54.9% shareholding. It will convert existing bonds in the same proportion as third-party conversions to keep its shareholding intact, the FT states. Tui Travel has GBP600 million of shareholder loans to repay to Tui AG: GBP450 million on December 1 and the remainder in 12 months' time, according to the FT. Ash Cloud Costs Roger Blitz at The Financial Times report that Tui Travel said in a statement to the Stock Exchange the volcanic ash cloud that has caused a widespread shutdown of European airspace has cost the tour operator GBP20 million. According to the FT, just over a third of the 100,000 Tui customers who remain stranded are from the UK. The FT relates the tour operator said the daily cost of the disruption to Tui was GBP5 million-GBP6 million. TUI AG -- http://www.tui-group.com/en/-- is a Germany-based company mainly engaged in the tourism sector, focusing on the markets of Central, Northern and Western Europe. TUI owns a network of travel agencies and tour operators, including air tours, Thomson, First Choice and TUI Deutschland. It also operates several airlines, including Corsairfly, Thomsonfly and First Choice Airways, among others. The Company is structured into three segments: TUI Travel, TUI Hotels and Resorts, and Cruises. TUI Travel comprises the Company's distribution, tour operating, airline and incoming activities and services over 30 million customers in 180 countries. The TUI Hotels and Resorts division offers a portfolio of 238 hotels, located in Spain, Greece, Egypt, France, Turkey, Tunisia, the Balearics and the Caribbean, among others. The Cruises sector comprises Hapag-Lloyd Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises, and cruises within the German-speaking countries, respectively. * * * As reported in the Troubled Company Reporter-Europe on Sept. 21, 2009, Moody's Investors Service lowered the Corporate Family Rating and Probability of Default Rating of TUI AG to Caa1 from B3. At the same time, the unsecured rating and the subordinated rating were lowered from Caa1 to Caa2 and from Caa2 to Caa3, respectively. Moody's said the outlook is negative. ============= I R E L A N D ============= ANGLO IRISH: Fails to Obtain Summary Judgment Orders v. Daly ------------------------------------------------------------ Tim Healy at The Irish Times reports that Anglo Irish Bank has failed to obtain summary judgment orders for EUR84.4 million against developer Michael Daly. The report relates the High Court's Justice Peter Charleton on Tuesday ruled that Mr. Daly had made out an arguable defense to the bank's claim against him. Mr. Daly is being sued for EUR84.4 million over unpaid loans of some EUR165 million to the Limerick- based Fordmount property group and two partnerships, the report says. According to the report, Mr. Daly argued, among various claims, that he had been assured by officials in Anglo that personal guarantees provided by him over loans were effectively "paper" guarantees and would never be called upon. The report notes the judge said much of what Mr. Daly had said relating to guarantees and other matters was inconsistent and he also needed to explain why, at a crucial point in early 2008, he had to submit a statement of his assets to the bank. The judge made directions to ensure a speedy hearing of the action in the Commercial Court and adjourned the case for mention to May 20, the report notes. Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/-- operates in three core areas: business lending, treasury and private banking. The Bank's non-retail business is made up of more than 11,000 commercial depositors spanning commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. The Company's retail deposits comprise demand, notice and fixed term deposit accounts from personal savers with maturities of up to two years. Non-retail deposits are sourced from commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. In addition, at September 30, 2008, its non-retail deposits included deposits from Irish Life Assurance plc. The Private Bank offers tailored products and solutions for high net worth clients and operates the Bank's lending business in Ireland and the United Kingdom. * * * As reported by the Troubled Company Reporter-Europe on April 7, 2010, Standard & Poor's Ratings Services commented on its CreditWatch status of Anglo Irish Bank Corp. Ltd. The 'BBB/A-2' long- and short-term counterparty credit ratings on Anglo remain on CreditWatch with negative implications, where they were placed on Jan. 26, 2010. In addition, S&P lowered the ratings on Anglo's nondeferrable subordinated debt to 'B' from 'BB+'. S&P plans to resolve the CreditWatch placement following the outcome of the European Commission review of Anglo's restructuring plan. S&P understands this may occur in the first half of 2010. ELAN CORP: May Split Into Two Separate Businesses ------------------------------------------------- John O'Doherty at The Financial Times reports that Elan Corporation may split into two separate businesses. According to the FT, Elan said it would explore the possibility of creating separately listed neurology and drug technology groups. The FT relates the company said the review would take several months, although there was no specific timetable for its completion, and no assurance the company would ultimately decide to split. The FT says under the terms of a possible division, a separately listed company would be created out of Elan's drug technology unit, which sells formulation and drug-optimization technologies to third-party pharmaceutical groups to help improve their existing medicines. About Elan Corporation Headquartered in Dublin, Ireland, Elan Corporation, plc -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Its principal research and development, manufacturing and marketing facilities are located in Ireland and the United States. Elan's operations are organized into two business units: Biopharmaceuticals and Elan Drug Technologies. Biopharmaceuticals engages in research, development and commercial activities primarily in neuroscience, autoimmune and severe chronic pain. EDT focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing. Elan shares trade on the New York, London and Dublin Stock Exchanges. The gross assets attributable to the AIP Program in the audited consolidated accounts of Elan as at December 31, 2008 were US$63.1 million. Costs (losses) associated with the AIP Program in respect of the year ended December 31, 2008 were approximately US$113 million. * * * Elan Corporation plc is currently rated B2 (Corporate Family Rating) with a positive rating outlook by Moody's Investors Service. SMURFIT KAPPA: Inks Asset Swap Agreement with Mondi Group --------------------------------------------------------- BreakingNews.ie reports that Smurfit Kappa Group has signed an asset swap agreement with Mondi Group. According to the report, under the asset swap agreement, Smurfit will acquire Mondi's corrugated operations in the UK, while Mondi will acquire SKG's Western European sack converting operations. The report says the total cash cost of the asset swap for SKG is EUR51 million. Smurfit is acquiring Mondi's UK corrugated operations, comprising three corrugated box plants, for EUR43 million on a cash and debt-free basis, the report discloses. Headquartered in Dublin, Ireland, Smurfit Kappa Group Plc -- http://www.smurfitkappa.com/-- is paper-based packaging company. The Company operates in 22 countries in Europe and is in to containerboard, solidboard, corrugated and solidboard packaging and in other paper packaging market segments. The Company also operates in nine countries in Latin America. The Company's operations are divided into packaging and specialties. The packaging segment includes a system of paper mills that produce a full line of containerboard that is converted into corrugated boxes by its converting operations. The Specialties segment primarily consists of graphicboard and solidboard businesses, along with paper sack and bag-in-box operations. * * * As reported by the Troubled Company Reporter-Europe on Nov. 13, 2009, Moody's Investors Service affirmed Smurfit Kappa Group plc's Ba3 corporate family rating and Ba3 probability of default rating. Moody's said the outlook on all ratings is stable. SYNCREON HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned ratings to syncreon Holdings; corporate family and probability of default, each of B2. Moody's also assigned a rating of B3 to the planned issuance of US$300 million of Senior Notes due 2018. The outlook is stable. These are first time ratings of syncreon, a global supplier of logistics and supply chain solutions for industrial companies. Proceeds from the new notes offering will be used to refinance the company's existing debt as well as to provide additional cash to the company for operating purposes. The rating considers syncreon's ability to achieve solid returns and operating margins that are superior to those typical of many of the company's competitors in the global supply chain logistics sector. This is due primarily to the company's ability to enter into contracts that involve more value-added activities than is typical among conventional logistics companies. In recent years, syncreon has generated operating margins in excess of 10%, as compared to industry peers that have reported low- to mid-single digit operating margins. Moody's anticipates that the company will continue to produce such margins over the next few years, as economic factors driving demand in the auto and consumer goods sectors are expected to improve in the regions in which syncreon operates. Credit metrics, which are estimated to be appropriate for B2-rated companies on close of the proposed notes offering, are expected to remain supportive of the rating over the near term, with EBIT to Interest of approximately 1.5 times and Debt to EBITDA slightly below 5 times. However, the ratings are constrained by risks associated with the aggressive acquisition- growth strategy currently being implemented by syncreon. Using this strategy, syncreon has broadened its regional scope, while reducing its reliance on the European technology sector as a key customer base. While the successful implementation of such a growth and diversification strategy is important to improve the company's scale and competitive position, it also raises the level of risk associated with integrating the acquired companies. Moody's believe that the recent expansion into the US market, most notably by the acquisition of NAL Worldwide less than one year ago, represents the greatest challenge to the company in terms of integrating new operations and gaining market share in this market, while at the same time maintaining margins and generating adequate cash flow to support its sizeable debt levels. Syncreon's liquidity position is viewed as adequate over the coming 12 month period. The company is expected to have adequate cash reserves on hand (approximately US$30 million), with neutral free cash flow anticipated over that period. The company has ample access to a US$50 million borrowing based revolving credit facility. This facility is expected to be undrawn on close of the refinancing transactions, and is not expected to be used over the near term. As the company operates under an asset-light business model, capital expenditure requirements are expected to be manageable, and will not likely require material external funding going forward. However, the company's internal cash sources could be challenged if operating margins were to substantially deteriorate. In that case, Moody' believes that the company could begin to make use of drawings under the credit facility to make up for cash shortfalls. Also, while it is expected that the company will be in-compliance with financial covenants over the near term, the maintenance of comfortable headroom to compliance levels will be contingent upon the company's ability to grow and maintain its operating margins during this period. Moreover, liquidity could become constrained if a substantial amount of cash or the revolvers were employed for large acquisitions. The stable outlook reflects Moody's expectations that the company will sustain robust operating margins over the near term, supporting modest levels of capital spending while sustaining an adequate liquidity profile. Debt levels are not expected to be reduced materially over this time, so credit metrics are estimated to remain at levels supportive of the B2 rating for the next few years. To the extent that the company engages in acquisitions going forward, Moody's anticipates that they will be relatively small and of a frequency that will allow the company to integrate these acquisitions in a manner that will not materially increase its risk profile. It is anticipated that additional debt financing may be used for such acquisitions, but only at levels commensurate with the earnings and cash flow that will continue to support the B2 rating. Ratings or their outlook could be revised downward if the company fails to meet its operating plans, possibly through failure to execute in the integration of acquired companies, or if it aggressively pursues large levered acquisitions that prove difficult to integrate, resulting in deteriorating profitability or weaker credit metrics. Specifically, a downgrade could be warranted if operating margins were to fall below 8%, if EBIT to Interest were sustained below 1.2 times, or if Debt to EBITDA exceeded 5.5 times. A weakened liquidity condition, possibly characterized by increased reliance on use of the credit facility to make up for cash shortfalls or tightness to prescribed financial covenants, could also result in a ratings downgrade. Since debt is not likely to be reduced materially over the next few years as the company is expected to continue to grow through acquisitions while expanding into new markets, ratings are not expected to be upgraded over the near term. However, over the longer term, operating improvements or de-leveraging that would result in Debt to EBITDA of less than 4 times and EBIT to Interest of over 2 times along with positive free cash flow generation to bolster liquidity would be factors that could lead to upward rating consideration. Assignments: Issuer: Syncreon Holdings -- Probability of Default Rating, Assigned B2 -- Corporate Family Rating, Assigned B2 -- Senior Unsecured Regular Bond/Debenture, Assigned B3 (LGD4- 59%) Syncreon's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) Moody's projections of the company's performance over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of syncreon's core industry and syncreon's ratings are believed to be comparable to those of other issuers of similar credit risk. Syncreon Holdings, an Irish public limited company with headquarters in Auburn Hills, MI, is provider of logistics and supply chains solutions. SYNCREON HOLDINGS: S&P Assigns 'B+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Ireland-based syncreon Holdings plc. At the same time, S&P assigned a 'B' issue-level rating to the company's proposed new US$300 million senior unsecured notes due 2018 issued by its subsidiaries syncreon Global (Ireland) Limited and syncreon Global Finance (US) Inc., one notch lower than the corporate credit rating on the parent. The recovery rating on this debt is '5', indicating S&P's expectation of modest (10% to 30%) recovery in a default scenario. S&P expects the company to use the proceeds to repay its existing US$220 million first-lien term loan and US$41 million second-lien term loan, and to fund US$27 million cash on its balance sheet. "The ratings on syncreon Holdings reflect the company's weak business risk profile as a global specialized contract logistics and supply chain solution provider, and its aggressive financial risk profile," said Standard & Poor's credit analyst Helena Song. The company's weak business risk profile primarily reflects its participation in the highly fragmented and competitive logistics industry and its low customer and end-market diversity. "The company mostly services companies in the technology and automotive industries, with its top five customers accounting for more than 50% of its revenue," she continued. Standard & Poor's expects the company to operate within credit measures commensurate for the ratings over the business cycle. However, S&P could lower the ratings if a worse-than-expected market downturn and/or debt-financed activities adversely affect liquidity or result in meaningful deterioration of credit measures, for example, debt to EBITDA higher than 5x. The company's weak business profile limits a potential ratings upgrade. ========= I T A L Y ========= MARIELLA BURANI: Commissioner Calls for Special Administration -------------------------------------------------------------- Reuters reports that court-appointed commissioner Francesco Ruscigno said on Tuesday he had called for Mariella Burani Fashion Group to be placed under special administration. Mr. Ruscigno told Reuters the procedure will not apply to the Burani family's leather goods company Antichi Pellettieri or other Mariella Burani subsidiaries. According to Reuters, Mr. Ruscigno recommended special administration on Friday to the Industry Ministry and to a court in Reggio Emilia, Mariella Burani's hometown. As reported by the Troubled Company Reporter-Europe on March 19. 2010, Dow Jones Newswires said the Reggio Emilia court declared Mariella Burani, which is laden with EUR600 million in debt, bankrupt. Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/ -- is an Italy-based company, operating in the fashion market. It designs, produces and distributes a range of apparel, knitwear, leather accessories, jewelry and footwear. The Company divides its operation into four divisions: Clothing Division, Leather Division, Digital Fashion and Fashion Jewellery. The Company's brand portfolio comprises the Company's own brands, such as Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle, Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among others, and the licensed brands: Vivienne Westwood (Anglomania), Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler (Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty, Sweet Years, Gherardini e John Galliano, among others. Among the subsidiaries there are: Mariella Burani Retail Srl, Antichi Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck Gmbh. =================== K A Z A K H S T A N =================== BTA BANK: Int'l Creditors Will Have Investments Slashed By 56% -------------------------------------------------------------- Nariman Gizitdinov at Bloomberg News reports that BTA Bank's international creditors may have their investments slashed by almost 56% after the Kazakh lender signed an agreement with a committee of investors. According to Bloomberg, under the agreement, creditors holding US$9 billion of senior debt will split US$1 billion in cash, US$2.43 billion of new senior debt and US$551 million of subordinated debt. Bloomberg notes investors also will receive a 12.55% stake in BTA plus recovery units that let them share in recoveries on impaired assets. Citing a term sheet dated April 18, Bloomberg says the settlement was reached with an 11-member creditors committee that includes Royal Bank of Scotland Group Plc, Commerzbank AG, Standard Chartered Plc and Wells Fargo & Co. Bloomberg recalls BTA said April 16 it will meet with bondholders through May to promote the plan before creditors vote May 28. Bloomberg relates Kairat Kelimbetov, chairman of state-owned National Wellbeing Fund Samruk-Kazyna, said in a speech delivered to government leaders that overall, the BTA's outstanding debt will drop to US$4.4 billion from US$11.5 billion. Samruk-Kazyna took control of BTA, the country's second-largest bank by assets, in February 2009 and the lender defaulted two months later after credit markets froze and Kazakhstan's property bubble burst, Bloomberg recounts. About BTA Bank BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO -- http://bta.kz/-- is a Kazakhstan-based financial institution, which is involved in the provision of banking and financial products for private and corporate clients. The BTA Group is one of the leading banking groups in the Commonwealth of Independent States and has affiliated banks in Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey. In addition, the Bank maintains representative offices in Russia, Ukraine, China, the United Arab Emirates and the United Kingdom. The Bank has no branch or agency in the United States, and its primary assets in the United States consist of balances in accounts with correspondent banks in New York City. As of November 30, 2009, the Bank employed 5,043 people inside and 4 people outside Kazakhstan. It has no employees in the United States. Most of the Bank's assets, and nearly all its tangible assets, are located in Kazakhstan. JSC BTA Bank, also known as BTA Bank of Kazakhstan, filed for Chapter 15 bankruptcy protection in New York on Feb. 4, 2010 (Bankr. S.D.N.Y. Case No. 10-10638), listing more than US$1 billion in both assets and debt. BTA Bank wants the Bankruptcy Court in Manhattan to enter an order recognizing the voluntary judicial restructuring proceeding that was initiated by the bank in the Specialized Financial Court of Almaty City in Kazakhstan and opened pursuant to an Oct. 16, 2009 decision of the Financial Court, as a foreign main proceeding pursuant to 11 U.S.C. Secs. 1515 and 1517. BTA Bank is represented in the Chapter 15 proceedings by White & Case LLP. =================== L U X E M B O U R G =================== LUXALPHA SICAV: SEC, FINRA Liable for Fund Losses, Suit Says ------------------------------------------------------------ Stephanie Bodoni at Bloomberg News reports that the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority were accused of being liable for losses in a Luxembourg fund tied to New York money manager Bernard Madoff. According to Bloomberg, the Luxembourg suit, which says the SEC and Finra failed to stop Mr. Madoff's fraud after repeated warnings, seeks an order holding the U.S. regulators liable for losses in Access International Advisors LLC's defunct LuxAlpha Sicav-American Selection Fund. Irving Picard was also sued for damages, in his role as the trustee tasked with liquidating Mr. Madoff's business, Bloomberg relates. "The SEC and Finra are liable for their extreme misconduct and failures" to prevent Madoff's "monumental fraud with disastrous effect on the global investment community, particularly on investors within Luxembourg," the suit, which was filed April 13 by lawyers for Access, said, according to Bloomberg. "Thanks to their poor functioning they enabled a fraud that lasted many years." Bloomberg notes the SEC has been faulted by U.S. lawmakers for failing to detect that Mr. Madoff was operating a US$65 billion Ponzi scheme. Bloomberg says Access, Littaye and Delandmeter made the claims as part of their defense to a lawsuit by the Luxembourg fund's liquidators that claims they are jointly liable for losses with UBS AG, the fund's custodian, and auditor Ernst & Young LLP. As reported by the Troubled Company Reporter-Europe, LuxAlpha was dissolved and put into liquidation on April 2, 2009. REYNOLDS GROUP: Moody's Affirms 'B2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service affirmed the Corporate Family Rating of Reynolds Group Holdings Limited. The rating outlook remains stable. The proposed Senior Secured Incremental Term Loan (US$750 million) and Senior Unsecured Notes (US$1,000 million) have been assigned a provisional (P)B1 and (P)Caa1 rating, respectively. The ratings on the group's existing indebtedness are expected to remain unchanged, but LGD-rates could change once the proposed Senior Secured Incremental Term Loan and Senior Unsecured Notes are in place. Moody's understands that the proposed financing is raised on a best efforts basis and proceeds are planned to be used (i) to finance the acquisition of packaging company Evergreen and the Whakatane paper mill (US$1.5 billion), (ii) US$170 million will be retained as cash, and (iii) the remainder is planned to cover transaction fees and expenses. Reynolds intends to acquire Evergreen which is located in the United States and the Whakatane mill which is located in New Zealand from Carter Holt Harvey. Both Reynolds and CHH are ultimately owned by the investment vehicle of financier Graeme Hart. Given the purchase price of US$1.5 billion the acquisition appears fully priced. As the acquisition will be entirely debt funded, the pace of deleverage expected in October 2009, when the Corporate Family Rating was downgraded to B2 from B1, will now be slower if the transaction materializes as planned. Moreover, Moody's believe this further acquisition and the proposed financing are evidence of an aggressive financial policy. Pro forma the acquisition Moody's calculate Debt/EBITDA as adjusted by Moody's of approximately 6x. At the same time Moody's see a solid industrial rationale behind the acquisition of Evergreen and the Whakatane mill. Evergreen is the global leader in fresh carton packaging offering fresh cartons and spouts (50% of 2009 sales), fresh liquid packaging board (23%) and paper (23%). Its traditional market is North America where an extensive cold chain distribution system exists and approximately 75% of revenues are generated. Hence, Evergreen complements Reynolds' existing SIG segment, which provides aseptic packaging solutions for a similar product range and customer group, primarily outside North America. Moreover, Evergreen is fully vertically integrated in that it owns two paper mills which provide liquid packaging board internally. This will provide internal sourcing benefits to the SIG business which currently sources liquid packaging board from the Whakatane mill and could source liquid packaging board from Evergreen. In light of the improved business profile, enhanced diversification and Reynolds' evidenced track record in reducing costs, Moody's believe the enlarged group should be able to reduce leverage to levels below 6x Debt/EBITDA as adjusted by Moody's by the end of 2010. However, Moody's caution that while the economic environment remains fragile, rising input costs are a challenge that needs to be managed. In case the expected deleverage does not materialize pressure on the rating would arise. Also, Moody's note that headroom under financial covenants will reduce as a result of the transaction. Any deviation from the company's business plan and thus further tightening of covenant headroom would also put pressure on the ratings. In turn, a reduction of leverage to levels of 5x Debt/EBITDA could result in positive rating implications. The provisional (P)B1 rating for the proposed US$750 million Senior Secured Incremental Term Loan is one notch above the CFR given the comprehensive guarantee and security package. Moody's understand that the proposed Senior Secured Incremental Term Loan will be governed by the same documentation as Reynolds' existing senior secured credit facilities which require senior guarantees of operating subsidiaries to represent at least 80% of consolidated assets and EBITDA and which are further supported by a first priority security interest which Moody's understand comprises the clear majority of the guarantors' assets. The provisional (P)Caa1 rating for the proposed US$1,000 million Senior Unsecured Notes reflects Moody's understanding that ultimately all entities that guarantee the senior secured credit facilities will also guarantee the proposed Senior Unsecured Notes. However, the proposed Senior Unsecured Notes will not benefit from any tangible collateral. These provisional ratings are based on summary terms and conditions received so far and are subject to Moody's satisfactory review of final documentation. Assignments: Issuer: Reynolds Group Holdings Inc. -- Senior Secured Bank Credit Facility, Assigned a 32% - LGD3 to (P)B1 Issuer: Reynolds Group Issuer Inc. -- Senior Unsecured Regular Bond/Debenture, Assigned a 81% - LGD5 to (P)Caa1 The last rating action was implemented on November 18, 2009, when the B2 Corporate Family Rating of Beverage Packaging (Lux) I S.A was withdrawn, and a B2 Corporate Family Rating assigned to Reynolds Group Holdings Limited with a stable outlook. Pro forma for the acquisition the combined group generated revenues of EUR3.9 billion in 2009 in four business segments: (i) aseptic packaging products for the food and beverage industries (SIG), (i) consumer packaging products (Reynolds Consumer), (iii) closures for the beverage, dairy and food segment (CSI) and fresh carton packaging and liquid packaging board (Evergreen). REYNOLDS GROUP: S&P Affirms 'B+' Long-Term Corporate Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it had affirmed its 'B+' long-term corporate credit ratings on Reynolds Group Holdings Ltd. and its related entities. The rating outlook is negative. Once the capital structure is finalized, S&P will review S&P's recovery ratings on the group's existing issues shortly. "The affirmation of the long-term corporate credit ratings follows an announcement by Reynolds that it intends to raise US$1.75 billion to acquire Evergreen Packaging Group and Whakatane Mill in a debt-funded transaction," said Standard & Poor's credit analyst Izabela Listowska. Evergreen is a leading global provider of integrated beverage carton packaging systems. S&P views the acquisitions as in keeping with Reynolds' business focus and operating strengths. In S&P's opinion, they will enhance Reynolds' competitive position and diversity, with combined annual pro forma sales of approximately 4 billion. The affirmation incorporates S&P's assessment that the operational benefits of the acquisitions, coupled with the company's demonstrated ability and, as S&P understands, commitment to reduce debt in the near term, are sufficient to mitigate the substantial immediate increase in financial leverage. The negative outlook reflects the considerable increase in financial leverage incurred to pursue the acquisitions, which will delay the restoration of Reynolds' financial risk profile, which is currently weak for the rating. ===================== N E T H E R L A N D S ===================== GENMED HOLDING: Meyler & Company Raises Going Concern Doubt ----------------------------------------------------------- Genmed Holding Corp. filed on April 15, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has an accumulated deficit of US$62,266,626 since inception and had net losses and negative working capital in 2009 and 2008. The Company reported a net loss of US$8,594,715 on US$51,992 of revenue for 2009, compared with a net loss of US$38,756,676 on US$9,399 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed US$6,250,905 in assets, US$2,147,810 of debts, and US$4,103,095 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?6051 Based in Zoetermeer, The Netherlands, Genmed Holding Corp. (OTC BB: GENM) -- http://www.genmed.nl/-- engages, through its wholly owned subsidiary, Genmed B.V., in the distribution of generic drugs ROYAL INVEST: Meyler & Company Raises Going Concern Doubt --------------------------------------------------------- Royal Invest International Corp. filed on April 15, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of US$43,970,182 for the year ended December 31, 2009, an accumulated deficit of US$65,111,573 at December 31, 2009, is in default of one of the mortgages payable and related debt covenants at December 31, 2009, and there are existing uncertain conditions which the Company faces relative to its obtaining financing, and capital in the equity markets. The Company reported a net loss of US$43,970,182 on US$11,579,500 of revenue for 2009, compared with a net loss of US$16,319,499 on US$12,851,572 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed US$97,495,151 in assets and US$150,611,563 of debts, for a stockholders' deficit of US$53,116,412. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?6055 Westport, Conn.-based Royal Invest International Corp. (OTC BB: RIIC) -- http://www.royalinvestinternational.com/ -- owns, operates and manages real estate in Europe. At December 31, 2009, and 2008, the Company owned 18 properties. The properties aggregate roughly 88,077 square meters (roughly 948,053 square feet), which are comprised of office buildings and business centers. The properties are located in Germany and the Netherlands. ============= R O M A N I A ============= * Fitch Gives Stable Outlook on Bucharest; Keeps 'BB+' Rating ------------------------------------------------------------- Fitch Ratings has revised the City of Bucharest's Outlook to Stable from Negative. Fitch has simultaneously affirmed its Long- term foreign and local currency ratings at 'BB+' and 'BBB-' respectively. Bucharest's Short-term foreign currency rating is affirmed at 'B'. The Long-term foreign currency rating of its EUR500m bond due 22 June 2015 has also been affirmed at 'BB+'. The revision in Outlook from Negative to Stable reflects a similar rating action on Romania's Outlooks. The ratings of the city are underpinned by Bucharest's role as the economic and political capital, its still satisfactory budgetary performance and manageable debt level. The ratings take into account the significant foreign currency debt exposure and, potentially, refinancing risks as well as economic contraction at the national and city levels. The ratings could benefit from a positive change in the sovereign ratings as long as budgetary performance and debt remain at the current levels. A negative rating action could be triggered by deterioration in the operating performance and debt exceeding 150% of operating revenues. Any downward rating action on Romania's ratings will also be automatically reflected in Bucharest's ratings. Operating margin remained sound at 29.4% in 2008 (23.4% on average for 2004-2008) and sufficient to cover interest cost by about 10x. Due to reduced capex, the deficit before debt variation was reduced to 6.1% in 2008 from 17.2% in 2007. However, Romania's economy contraction of 7.1% in 2009 -- the first decline since 1999 after having grown an average 6.7% for 2004-2008 -- affected Bucharest considerably. The city's economy and its tax-raising potential were hit hard, given its large share of cyclical taxes such as PIT and VAT. Therefore, based on budget figures and Fitch estimates, operating margin is expected to have declined in 2009, but should recover in 2010 and return to around 25% in 2011. Like other Romanian cities, Bucharest's financial position is tightly controlled by the highly centralized budgetary system and the strong governance relationship with the sovereign. The Romanian state controls a city's tax base, rates and collection as well as important expenditure items such as salaries. It also approves the city's debt. All these factors, however, constrain budgetary flexibility. Debt is estimated by the city to have increased to 80% of current revenue in 2009 (2008:78%), before declining by 2012. Although liquidity has been strong, this is expected to decline as the municipality undertakes new capital expenditure. There is some indirect risk as Radet, the municipal heating company, has reported significant losses in the past. Bucharest is exposed to currency fluctuations and refinancing risks as most of the debt is contracted in euro (including the EUR500 million bond issued in 2005 with a bullet maturity in 2015) and unhedged. Bucharest is the capital of Romania and its main economic and financial centre. It has a population of about 1.94 million (9% of Romania). Local GDP per capita was about 50% of the EU-27 average at end-2007 and 2.2x higher then the national average. =========== R U S S I A =========== FOREIGN ECONOMIC: Moody's Lifts Long-Term Deposit Rating to B2 -------------------------------------------------------------- Moody's Investors Service has upgraded the long-term foreign currency deposit rating of Russia's Foreign Economic Industrial Bank to B2 from B3. Consequently, Moody's Interfax has upgraded the bank's National Scale Rating to Baa1.ru from Baa2.ru. At the same time, Moody's has affirmed these global scale ratings at the current levels: Not-Prime short-term foreign currency deposit rating and an E+ bank financial strength rating (BFSR -- mapping to a Baseline Credit Assessment -- BCA - of B2). The outlook for all ratings is stable. Moscow-based Moody's Interfax is majority- owned by Moody's, a leading global rating agency. According to Moody's the rating action reflects Vneshprombank's resilience to the global financial crisis, which has enabled the bank to demonstrate a satisfactory performance in terms of (i) sustained growth, and (ii) core financial fundamentals -- such as asset quality indicators, funding, profitability and liquidity. These results were achieved due to the special niche in which the bank operates (boutique model with high-net-worth customers), and its below-average risk appetite. During 2009, shareholders also demonstrated willingness and ability to capitalize the bank in order to finance its growth, and Moody's expects this support to continue via a planned RUB1.3 billion (US$44 million) capital increase in 2010. During 2009, Vneshprombank grew its balance sheet substantially, reflecting its capability to attract core customers. At the same time, the loan portfolio continued to perform better than average for the Russian banking system. This enabled the bank to demonstrate adequate profitability indicators due to the fact that (i) borrowers are usually well collateralized (LTV often less than 50%) and the bank uses a collateral-based approach and other credit risk mitigants in its lending procedures which, in this case, have proved to be working well, thus resulting in lower delinquencies; (ii) loans are usually short term and granted for operational purposes (no project finance); and (iii) the majority of borrowers have reasonably good credit standing. Vneshprombank benefits from a high liquidity cushion which would enable it to manage very large withdrawal of customer funds without having to reduce business volumes. At the same time, Moody's notes very high concentration levels in the funding base (e.g. top 20 customers account for 77% of customer deposits). However, despite historically high concentrations, the customer base has demonstrated satisfactory stability in the past -- including through crisis times. Nonetheless, this significant concentration in funding renders its franchise and business significantly exposed to the risk of major funding outflows. In addition, Moody's notes that Vneshprombank remains highly exposed to succession risk, given that a significant portion of the bank's business is based on the personal contacts of the current owners. As a result, the bank's franchise and other financial indicators (e.g. asset quality, funding) are potentially vulnerable and volatile. Moody's also notes high concentration levels in the loan book that -- in the current unstable economic environment -- could result in volatility of the bank's asset quality and franchise indicators. The B2/NP foreign currency deposit ratings do not incorporate possible support from Vneshprombank's owners. In Moody's view, although such support has been forthcoming, its scope and timeliness are rather uncertain. Given the bank's size and market position, any support from the Russian financial authorities is unlikely. Moody's notes that significant strengthening of the bank's franchise accompanied by improved financial fundamentals would likely exert upward pressure on the bank's BCA and long-term foreign currency deposit rating, although this is not expected in the near term. Vneshprombank's BCA and long-term foreign currency deposit rating could be downgraded if any significant asset quality problem should appear, causing deterioration in capitalization levels or liquidity problems, although this is not expected in the near term. Downward pressure could also stem from the materialization of succession risk which would, in time, exert pressure on franchise value. The last rating action on Vneshprombank was on July 3, 2007, when the National Scale Rating was upgraded to Baa2.ru from Baa3.ru. Headquartered in Moscow, Russian Federation, Vneshprombank reported total consolidated assets of US$1.6 billion and total equity of US$100 million under IFRS at year-end-2009. It ranked among 80 largest banks by assets among Russian banks as of December 31, 2009. ========= S P A I N ========= OBRASCON HUARTE: Fitch Assigns 'BB-' Senior Unsecured Rating ------------------------------------------------------------ Fitch Ratings has assigned Obrascon Huarte Lain's EUR700 million 7.375% bond, due April 2015, a final senior unsecured rating of 'BB-'. The bond's rating is in line with OHL's senior unsecured 'BB-' rating. OHL's rating Outlook is Negative. OHL is a Spanish-based construction company and concessions/toll roads operator. ===================== S W I T Z E R L A N D ===================== SES SOLAR: Posts US$1.2 Million Net Loss in 2009 ------------------------------------------------ SES Solar Inc. filed on April 15, 2010, its annual report on Form 10-K, showing a net loss of US$1,215,157 on US$1,336,188 of revenue for 2009, compared with a net loss of US$474,454 on US$33,416 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed US$23,400,157 in assets, US$21,450,137 of debts, and US$1,950,020 of stockholders' equity. BDO Ltd., in Zurich, Switzerland, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's recurring losses from operations. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?6054 Based in Geneva, Switzerland, SES Solar Inc. is a Delaware corporation engaged in the business of designing, engineering, producing and installing solar panels or modules and solar tiles for generating electricity. The Company conducts its operations through two wholly owned subsidiaries, SES Prod. S.A. and SES Societe d'Energie Solaire S.A.. The Company's shares are quoted on the OTC Bulletin Board under the symbol "SESI.OB". ============= U K R A I N E ============= UKREXIMBANK JSC: Moody's Assigns 'B1' Senior Unsec. Loan Notes -------------------------------------------------------------- Moody's Investors Service has assigned a rating of B1 to the senior unsecured loan participation notes of Ukreximbank. The size of the issue is US$500 million, and the notes will be issued for the period of five years on a limited-recourse basis by Biz Finance PLC, a UK-based special purpose vehicle, for the sole purpose of funding loans to Ukreximbank. The outlook for the rating is negative. Moody's says that the B1 rating assigned to the notes is based on the fundamental credit quality of the underlying obligor, Ukreximbank, rated Ba3/Not Prime/D- (negative). Although Moody's assessment of probability of systemic support is implied in the bank's ratings, this does not result in a notching uplift as the bank's stand-alone rating (D- Bank Financial Strength Rating mapping to a Ba3 Baseline Credit Assessment) is higher than the Ukrainian government's B2 debt rating. The B1 senior unsecured rating on Ukreximbank's notes is constrained by the sovereign ceiling for Ukraine. According to the terms and conditions of the loan agreement, Ukreximbank must comply with the total capital adequacy requirements of the central bank (National Bank of Ukraine). Moody's cautions that, if the financial condition of the bank were to deteriorate, such that this covenant comes close to being breached, the ratings of the bank and the notes would come under significant downward pressure. Other features of the notes include negative pledge covenants, limitations on mergers and disposals, and transactions with affiliates. Moody's previous rating action on Ukreximbank was on June 22, 2009, when Moody's downgraded the long-term local currency deposit ratings of the bank to Ba3 from Ba1 following a review of the systemic support assumptions. Headquartered in Kiev, Ukraine, Ukreximbank reported total consolidated assets and total capital of US$7.03 billion and US$1.68 billion, respectively, in accordance with IFRS, at year- end 2009. =========================== U N I T E D K I N G D O M =========================== EMI GROUP: Loses Distribution Rights to McCartney's Catalogue ------------------------------------------------------------- Susan Thompson and Helen Power at Times Online report that EMI Group has lost the distribution rights to Sir Paul McCartney's catalogue of about 50 post-Beatles albums. Mr. McCartney, who has not distributed newly recorded music through EMI since 2007, recovered control of his library of albums released between 1970 and 2006, the report relates. According to the report, it is the worldwide distribution rights to that catalogue that EMI is understood to have lost. The rights have been handed to the independent record label Concord Music Group, the report says, citing The Wall Street Journal. Going Concern Doubt As reported by the Troubled Company Reporter-Europe on Feb. 8, 2010, The Financial Times said KPMG, EMI Group's accountants, raised "significant doubt" about the company's ability to continue as a going concern. The FT disclosed Guy Hands, Terra Firma's founder and chairman, wrote to investors in two of its private equity funds asking them to inject another GBP120 million, subject to EMI Music producing a new strategic plan. He must come up with the money by June 14 or risk losing the company to Citigroup, his bankers, the FT said. According to the FT, accounts for the year to March 2009, released on February 9, however, make clear that even if Terra Firma secures this equity, it will face another "significant shortfall" against a test on covenants in its loans by March 2011. Unless it can persuade Citigroup to restructure its GBP3.2 billion in loans by then, investors face further cash calls, the FT stated. The FT disclosed EMI's pre-tax losses for the year to March 2009 widened to GBP1.7 billion, against a GBP414 million loss for the previous period, which covered the first eight months and 21 days of Terra Firma's ownership. EMI -- http://www.emigroup.com/-- is the fourth largest record company in terms of market share (behind Universal Music Group, Sony Music Entertainment, and Warner Music Group). It houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints and divisions such as Capitol Records and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. EMI Music operates through regional divisions (EMI Music North America, International, and UK & Ireland). Private equity firm Terra Firma owns EMI. GAMEGRID: In Liquidation; Three Sites Sold ------------------------------------------- InterGame Online reports that Gamegrid, an operator of amusement arcades at 14 sites around the U.K. and France, has gone into liquidation. The report relates Sue Staunton of Thames Valley accountants and business advisers James Cowper has been appointed as administrator. "We have managed to sell three sites already at Gatwick airport, Leeds Bradford airport and Birmingham airport and will be trying to find possible buyers for the other sites over the next week or so," the report quoted Ms. Stanton as saying. Based in Bournemouth, United Kingdom, Gamegrid employs 40 people, according InterGame Online. RESLOC UK: S&P Affirms 'CCC' Ratings on Two Classes of Notes ------------------------------------------------------------ Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on ResLoC U.K. 2007-1 PLC's class M1a, M1b, B1a, B1b, C1a, and C1b notes. At the same time, S&P has lowered its ratings on the class D1a and D1b notes and affirmed the ratings on all other classes of notes. The downgrades follow S&P's credit and cash flow analysis. As per the March 2010 investor report, 180+ day delinquencies (including repossessions) were 8.6%. S&P view this as an indicator of loans that may default, and in its rating analysis S&P assume that a high percentage of these loans will ultimately default. S&P note that some of the delinquencies can be attributed to a fall in monthly payments. In S&P's opinion, the weighted-average loss severity in the last quarter remained high at 38.0%. The issuer was able to top up the reserve fund this quarter, but the reserve is 19.84% of the required amount and 0.41% of the outstanding note balance. Prepayments have fallen in recent quarters and are now at 4.5%, which has slowed deleveraging of the senior and mezzanine notes. In the current market, S&P believes borrowers are both unwilling and unable to refinance. Borrowers are unwilling to refinance because their reversionary rates are still competitive compared with current rates, and borrowers either in arrears or negative equity will be unable to refinance. In addition, the second of the three interest rate caps expires in June 2010, leaving only one cap as protection against high interest rates in some of its stressed scenarios that S&P modeled at closing. S&P will continue to monitor this transaction and if the reserve continues to top up through 2010 and performance improves, then upgrades for some classes of notes may be possible. However, if interest rates are raised in 2010 or early in 2011, S&P believes borrowers' ability to service higher monthly payments could depend on whether other spending commitments have already absorbed the windfall from previous rate cuts. If so, S&P believes arrears could begin to rise again and collection rates could fall. ResLoC U.K. 2007-1 is a U.K. nonconforming residential mortgage- backed securities transaction that closed in May 2007. The collateral comprises first-ranking mortgages secured on freehold and leasehold owner-occupied, "right-to-buy" and "buy-to-let" properties in the U.K. Ratings List ResLoC U.K. 2007-1 PLC EUR395.5 Million, GBP485.8 Million, and US$303.7 Million Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- M1a AA- AAA/Watch Neg M1b AA- AAA/Watch Neg B1a A AA/Watch Neg B1b A AA/Watch Neg C1a BBB+ A-/Watch Neg C1b BBB+ A-/Watch Neg Ratings Lowered Rating ------ Class To From ----- -- ---- D1a B B+ D1b B B+ Ratings Affirmed Class Rating ----- ------ A3a AAA A3b AAA A3c AAA MERC AAA E1b B- E2b CCC F1b Def CCC ROYAL BANK: To Await Outcome of U.S. Probe Into Goldman Sachs ------------------------------------------------------------- Paul J. Davies and Sharlene Goff at The Financial Times report that Royal Bank of Scotland, the part-nationalized UK bank that lost US$840 million in an allegedly fraudulent investment created by Goldman Sachs, will await the outcome of US investigations before deciding whether to pursue its own legal action. According to the FT, RBS will see if the U.S. Securities and Exchange Commission is likely to be successful in the civil suit it has launched against Goldman. The FT says RBS lost money on the deal through its ownership of ABN, the Dutch bank it bought at the height of the credit bubble in 2007, which had acted as a guarantor for ACA, the main counterparty in the deal. ABN in effect rented out its balance sheet to ACA through an existing credit line, the FT notes, citing people familiar with the matter. The bank took a relatively small fee in exchange for the promise that in the event ACA ran into big financial difficulties, ABN would make good any money ACA owed on the Goldman deal, the FT states. As reported by the Troubled Company Reporter-Europe on April 21, 2010, Bloomberg News said Goldman Sachs faces a regulatory probe in Britain and scrutiny from the German government after the SEC sued the firm for fraud tied to collateralized debt obligations. Bloomberg disclosed the SEC said that in early 2007, as the U.S. housing market teetered, Goldman Sachs created and sold a CDO linked to subprime mortgages without disclosing that hedge fund Paulson & Co. helped pick the underlying securities and bet against the vehicle, known as Abacus 2007-AC1. The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on March 29, 2010, Standard & Poor's Ratings Services said that it lowered its ratings on "may pay" Tier 1 securities issued or guaranteed by The Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'. At the same time, the rating on the RBSG-related security issued by Argon Capital PLC was similarly lowered to 'C' from 'CC'. The counterparty credit ratings and stand-alone credit profiles of RBSG and subsidiaries, and the ratings on other debt securities issued by these entities, are unaffected. VIRGIN MEDIA: Fitch Upgrades Issuer Default Rating to 'BB' ---------------------------------------------------------- Fitch Ratings has upgraded Virgin Media Inc.'s Long-term Issuer Default Rating to 'BB' from 'BB-', and removed the rating from Rating Watch Positive. Fitch has assigned Virgin Media's Long- term IDR a Stable Outlook and affirmed the Short-term IDR at 'B'. Furthermore, Fitch has assigned Virgin Media Investment Holdings' new GBP1,925 million senior secured facilities a rating of 'BB+', and withdrawn the 'BB+' rating on the issuer's previous and now repaid senior secured facilities. The agency has affirmed all Virgin Media's other instrument ratings as detailed at the end of this comment. "The new bank facilities will enable Virgin Media to deleverage more smoothly through a new five year scheduled amortization profile," said Michelle De Angelis, Senior Director in Fitch's Leveraged Finance team. "This, together with the continued strength of operational results and key performance indicators such as average revenue per user (ARPU) levels and customer additions, supports the upgrade of Virgin Media's Long-term IDR to 'BB' from 'BB-'." The new senior secured bank facility term-out represents the final step in Virgin Media's piecemeal removal of its 2012 refinancing risk. A total GBP1.25 billion of senior secured loan facilities would have fallen due for repayment by 2012 (and a further GBP300 million in 2013), but the new GBP1,675 million senior secured term facilities (plus GBP250 million revolving facilities for a total of GBP1,925 million) will extend final maturities to 2015, which will lengthen and smooth the company's repayment profile. Virgin Media's competitive positioning and high quality network assets position it strongly in the UK market as a "second incumbent", but its financial metrics constrain it to a speculative grade rating for the time being. Results for H209 were particularly strong despite the UK recession, following the price increase implemented during the first half of the year. Operating cashflow reached GBP1,361 million for FY09, with a margin of 35.8% and Fitch FFO-adjusted net leverage was 4.1x at FYE09, which positions the company comfortably within the 'BB' IDR category. Future upwards momentum will depend on financial strategy such as dividend distributions and commitment to de-leveraging through debt paydown. In addition, the company has announced a call of the remaining GBP176 million equivalent of the 2014 senior notes in order to smooth its debt amortization profile further. The 'BB' rating on these notes will be withdrawn upon redemption which is expected on May 12, 2010. Virgin Media's existing instrument ratings have been affirmed: * Virgin Media Secured Finance Plc 2018 senior secured bonds: 'BB+' * Virgin Media Finance Plc 2014, 2016 and 2019 senior notes: 'BB' * UK: Insolvency Industry Saved Nearly 2 Million Jobs in 2009 ------------------------------------------------------------- New research by ComRes estimates that the UK's insolvency industry helped to save nearly two million jobs in companies going through insolvency and rescued around six thousand (5,851) businesses last year. Furthermore, the UK's Insolvency Practitioners who work on corporate insolvencies spend nearly a quarter of their time on preventing insolvencies, work which cannot be made public for fear of damaging the value of the businesses concerned. "One might assume that when an Insolvency Practitioner (IP) walks through the door of your business, it is time to clear your desk, but the reality is very different," said R3's incoming President Steven Law. "If the IP can get in early enough, often the business, or parts of the business, can be saved by insolvency procedures such as administration or Company Voluntary Arrangements (CVAs). Two million jobs equates to around 7% of the working population. Also an overlooked part of our role is helping businesses and individuals avoid insolvency in the first place." Other research by the cebr also demonstrates the vital role the insolvency industry plays in creating an environment in which "creditors are willing to lend, entrepreneurship is encouraged and the economy can flourish". World Bank data shows there are only 6 countries in the world where the amount recovered for creditors in an insolvency is higher, extracted over a shorter time and at a lower cost than the UK (Japan, Singapore, Norway, Canada, Finland and Belgium). Mr. Law concluded: "We rank above the US on these criteria, which highlights that during this recession, the insolvency regime has generally performed well. World Bank data showed the UK insolvency regime was able to recover 84 cents in the dollar for creditors and only at a cost of 6% of the value of the estate. "This latest research also showed that the UK insolvency industry made a direct contribution of around GBP562 million to national GDP. It is time to think of the profession as financial healthcare specialists rather than corporate undertakers. The earlier a company director faces up to their financial problems, the better the diagnosis is going to be." * UK: Administrations Down 46% in 1st Qtr. 2010, Deloitte Says -------------------------------------------------------------- Analysis of administration figures for the first quarter of the year by Deloitte, the business advisory firm, highlights a 46% drop in the number of companies falling into administration in Q1 this year compared with the same period a year ago. This is also down 22% compared with the same period in 2008. Furthermore from October to March a total of 1154 companies went into administration -- the fewest in this six month period of any of the last four years. The research also highlighted that the total number of administrations has dropped from 1,028 companies in Q109 to 555 in Q110. Quarter on quarter there was a drop of 7%. Lee Manning, reorganization services partner at Deloitte, commented: "The magnitude of the decline in administrations is surprising. Traditionally, the first quarter of the year sees an increase in the number of companies falling into administration following the festive season. However, this year we have not seen this and the trend suggests that we may well have turned a corner. "Measures put in place by businesses, along with more versatile lender groups saw companies aggressively attacking costs and improving cash management throughout last year -- clearly this has borne positive results. However, the impact of the impending election cannot be overlooked. While economic conditions have improved they remain fragile. Inevitable public spending cuts and tax rises, as well as an increase in interest rates will put further pressure on companies. The pain may have eased, but I am not confident that it is over. "Nevertheless it is encouraging to see that as a whole administrations are down year on year. The hospitality and leisure sector, which offers a good insight into discretionary spending habits, has seen the number of administrations drop by over 50% year on year and are down 27% compared with the same period in 2008. "In addition, the manufacturing sector also saw a drop of 48% in the number of administrations compared with the same period a year ago and a decline of 11% compared with the first quarter of 2008. In fact, the total number of administrations for Q409 and Q110 are lower than they were prior to the recession. While administrations are falling, it is another question whether this will continue with lenders retaining an appetite for debt for equity swaps rather than formal insolvency procedures. "It will be interesting to see how this plays out after the election when new legislation may come into force. Those businesses that have already done everything they can to manage cash flow may not be able to tighten their belts any further and consumers will no doubt have to rein in discretionary spending. Businesses are not out of the woods yet and the outlook for the latter part of 2010 should be viewed with caution." Key stats: * Q110 saw 555 administrations, compared with 599 in Q409, and 714 in Q108; * Hospitality and leisure saw a 52% drop in the number of companies falling into administration year on year from 93 in Q109 to 45 in Q110, the figure also drops 27% from Q108 which saw 62 companies fall into administration. Q110 saw a drop of 29% quarter on quarter from 63 in Q409; * Manufacturing saw a drop of 48% in the number of administrations compared with Q109 from 175 down to 91 in Q110, and a decline of 5% quarter on quarter from 87 in Q409. Q108 saw 102 manufacturing companies fall into administration; * Total administrations: * Q406 and Q107 = 1385 administrations; * Q407 and Q108 = 1354 administrations; * Q408 and Q109 = 2036 administrations; * Q409 and Q110 = 1154 administrations. =============== X X X X X X X X =============== * EUROPE: Siemens CEO Warns of Insolvencies in Industrial Sector ---------------------------------------------------------------- Daniel Schafer at The Financial Times reports that Heinrich Hiesinger, the chief executive of Siemens' industrial arm, warns of a wave of insolvencies among European industrial companies. According to the FT, Mr. Hiesinger said some of the companies are suffering from an 18-month order drought and a lack of financing. "We already see a slight increase of the insolvency rate in our customer base," the FT quoted Mr. Hiesinger as saying. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Apr. 20-22, 2010 TURNAROUND MANAGEMENT ASSOCIATION Sheraton New York Hotel and Towers, New York City Contact: http://www.turnaround.org/ Apr. 29, 2010 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - East Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 THE COMMERICAL LAW LEAGUE OF AMERICA Midwestern Meeting & National Convention Westin Michigan Avenue, Chicago, Ill. Contact: 1-312-781-2000 or http://www.clla.org/ May 21, 2010 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - NYC Alexander Hamilton Custom House, SDNY, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 24, 2010 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference New York Marriott Marquis, New York, NY Contact: 1-703-739-0800; http://www.abiworld.org/ May 11-14, 2010 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 3, 2010 AMERICAN BANKRUPTCY INSTITUTE Atlanta Consumer Bankruptcy Skills Training Georgia State Bar Building, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 11-14, 2010 AMERICAN BANKRUPTCY INSTITUTE Hawai.i Bankruptcy Workshop The Fairmont Orchid, Big Island, Hawaii Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 14, 2010 AMERICAN BANKRUPTCY INSTITUTE ABI/NYIC Golf and Tennis Fundraiser Maplewood Golf Club, Maplewood, N.J. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 20, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Fordham Law School, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 23-25, 2010 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 1, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute Kansas City Marriott Downtown, Kansas City, Kan. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Oct. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Chicago Consumer Bankruptcy Conference Standard Club, Chicago, Ill. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 15, 2010 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Hilton New Orleans Riverside, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 29, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium The Savoy, London, England Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. __, 2010 AMERICAN BANKRUPTCY INSTITUTE Delaware Views from the Bench and Bankruptcy Bar Hotel du Pont, Wilmington, Del. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Hyatt Regency Dearborn, Dearborn, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 20-21, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 (tentative) AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda-Fernandez, 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 * * *