/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100510.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, May 10, 2010, Vol. 11, No. 090 Headlines D E N M A R K SPAR NORD: Moody's Assigns 'Ba1' Rating on Hybrid Tier 1 Notes G E R M A N Y HYPO REAL ESTATE: Court to Hear Witnesses Over Ex-Chief Firing ROHWEDDER AG: Ex-Chief Seeks Investors to Buy Back Business G R E E C E * GREECE: EU Agrees to Set Up Fund to Halt Crisis Contagion * GREECE: German Lawmakers Approve EUR22.4 Bil. Bailout Loan * GREECE: Banks, Insurers to Provide EUR8.1 Bil. in Financing I C E L A N D KAUPTHING BANK: Ex-CEO Arrested in Collapse Probe I R E L A N D CLOVERIE PLC: Moody's Junks Ratings on Four Classes of Notes MICHAEL TIMONEY: Judge Grants GBP5.6-Mil. Summary Judgment L U X E M B O U R G COLT GROUP: S&P Gives Positive Outlook; Affirms 'BB-' Rating P O L A N D BANK BPH: To Post Loss This Year; Mulls Job Cuts R U S S I A CREDIT EUROPE: Fitch 'BB-' Assigns Issuer Default Rating TATNEFT OAO: Fitch Affirms Issuer Default Rating at 'BB' U N I T E D K I N G D O M ALBURN REAL: S&P Junks Ratings on Three Classes of Notes BRITISH AIRWAYS: Cabin Crew Rejects Latest Pay Offer to End Row EMI GROUP: Terra Firma Investors to Vote on Cash Call Today I-LEVEL: Engine Buys Social Media Unit Jam PORTSMOUTH FOOTBALL: Debts Soar to GBP135MM, Administrators Say RANGERS FOOTBALL: Fans May Boycott Lloyds on Lack of Support ROYAL BANK: Posts GBP248 Mil. Net Loss in First Quarter 2010 WINDERMERE XI: S&P Lowers Ratings on Two Classes of Notes to 'D' X X X X X X X X * BOND PRICING: For the Week May 3 to May 7, 2010 ********* ============= D E N M A R K ============= SPAR NORD: Moody's Assigns 'Ba1' Rating on Hybrid Tier 1 Notes -------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to the DKK350 million (EUR47 million) outstanding perpetual hybrid Tier 1 securities issued by Spar Nord Bank A/S. In accordance with the revised hybrid methodology published in November 2009, Moody's used Spar Nord's Baa1 adjusted Baseline Credit Assessment as the starting point and notched down based on these features of the instrument: Coupon skip is mandatory following the breach of an available free reserve trigger, in which case the deferral would be non- cumulative, providing stronger loss absorption capacity while the issuer is going concern. Following the breach of a minimum regulatory capital trigger, interest deferral is optional and cumulative. A permanent principal write-down is possible if share capital is reduced to zero in a restructuring outside of a liquidation. Taking into account their deeply subordinated claim in liquidation, this leads to these instruments being rated at three notches below BCA level. The previous rating action on Spar Nord Bank A/S was implemented on 26 February 2010, when the bank's junior subordinated debt ratings were downgraded to Baa3 from Baa2. Spar Nord reported a pre-tax profit for the first three months of 2010 of DKK11 million, down 78% year-on-year. The reduction was driven mainly by a lower net interest income (down 15% year-on- year), reflecting the lower interest rate environment and reduced loan book, and higher staff costs (up 11% year-on-year), half of which extraordinary costs related to redundancies. Spar Nord's Tier 1 capital was 13.2% at end-March 2010, unchanged from YE2009. Headquartered in Aalborg, Denmark, Spar Nord Bank A/S reported total assets of DKK69 billion (EUR9 billion) at the end of March 2010. ============= G E R M A N Y ============= HYPO REAL ESTATE: Court to Hear Witnesses Over Ex-Chief Firing -------------------------------------------------------------- Oliver Suess and Karin Matussek at Bloomberg News report that a Munich court said it needs to hear expert witnesses to decide whether Hypo Real Estate Holding AG was entitled to fire former Chief Executive Officer Georg Funke and other top managers over the lender's bailout. Bloomberg relates Presiding Judge Helmut Krenek on Thursday said testimony from experts is needed to decide whether breaches of duty by Mr. Funke, former Chief Financial Officer Markus Fell and ex-management board member Frank Lamby were severe enough to justify the firings. Bloomberg recalls the contracts of the three executives, who sued for wrongful dismissal, were terminated in December 2008. According to Bloomberg, the court will review whether the managers fulfilled their due diligence obligations related to the EUR5.3-billion (US$6.8 billion) 2007 acquisition of Dublin-based Depfa Bank Plc and the lender's refinancing strategy. Bloomberg says Messrs. Funke and Fell are seeking to invalidate their firings and demand salary payments for parts of 2009, as well as pension payments, while Mr. Lamby is seeking pay for January 2009. Bloomberg notes the judge said at the court hearing financial and legal experts will have to testify about whether Hypo Real Estate's managers had an obligation to conduct a group-wide liquidity stress test and establish an emergency plan. The court plans to issue a ruling on the cases Jan. 27, 2011, Bloomberg states. The cases are LG Muenchen, 5HK O 2122/09, LG Muenchen, 5HK O 2683/09, LG Muenchen 5HK O 1762/09, LG Muenchen, 5HK O 1644/09 and 5HK O 270/09. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. ROHWEDDER AG: Ex-Chief Seeks Investors to Buy Back Business ----------------------------------------------------------- Ragnhild Kjetland at Bloomberg News, citing newspaper Sueddeutsche Zeitung, reports that Joachim Rohwedder, former chairman and chief executive officer of Rohwedder AG, is seeking investors to buy back the company. According to Bloomberg, Mr. Rohwedder told the newspaper in an interview he has just started the search for investors and has until the end of May to make an offer. As reported by the Troubled Company Reporter-Europe, Rohwedder AG applied to the Konstanz district court on March 26, 2010, to initiate insolvency proceedings. According to the report, once the insolvency proceedings have been initiated, Rohwedder would cease doing business and would liquidate. Shareholders are not expected to recover anything. Rohwedder AG -- http://www.rohwedder.de/-- is a Germany-based company that supplies automation system solutions for the assembly, production and testing technology within two segments. Within the Mechatronics Production Solutions segment the Company concentrates on Assembly Technologies in Europe and North America, offering automation solutions for the automotive industry; and Micro Technologies, which specializes in assembly solutions for the production of micro products. The Electronics Production Solutions segment includes MIMOT Surface Mount Technologies, which provides surface mount device placement technology products; Mobile Device Solutions, focusing on automation solutions for the mobile communication industry; Standard Products, which offers products through the brand JOT Automation; and Customer Specific Solutions, providing fully automatic and semiautomatic as well as manual solutions. The Company operates through numerous direct and indirect subsidiaries as well as affiliated companies. =========== G R E E C E =========== * GREECE: EU Agrees to Set Up Fund to Halt Crisis Contagion ----------------------------------------------------------- James G. Neuger and Gregory Viscusi at Bloomberg News report that European leaders agreed to set up an emergency fund to halt the spread of Greece's fiscal woes. According to Bloomberg, leaders of the 16 euro countries said the workings of the financial backstop will be hammered out before the markets open today, May 10. Bloomberg notes European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the European Union's central authorities with guarantees by national governments. "When the markets re-open [to]day, we will have in place a mechanism to defend the euro," Bloomberg quoted French President Nicolas Sarkozy, as saying. "If you don't think that's significant, you haven't been to many EU summits." * GREECE: German Lawmakers Approve EUR22.4 Bil. Bailout Loan ------------------------------------------------------------ Tony Czuczka and Patrick Donahue at Bloomberg News report that German lawmakers approved loans of as much as EUR22.4 billion (US$28.6 billion) for cash-stricken Greece. Bloomberg relates the lower house of parliament in Berlin voted 390 to 72 in favor of Germany's share of the EUR110-billion lifeline from the euro-region and International Monetary Fund that will allow Greece to avoid default. According to Bloomberg, Finance Minister Wolfgang Schaeuble told lawmakers in the lower house, or Bundestag, that a Greek default would be "devastating". Bloomberg notes Mr. Schaeuble urged approval of the aid package as essential for the euro's stability and the future of the whole European Union. "We have no better alternative," Bloomberg quoted Mr. Schaeuble as saying. "Any other way would be more expensive and more dangerous." Challenge Karin Matussek at Bloomberg News reports that German participation in the GBP110-billion (US$140 billion) aid package for Greece was challenged by five academics who claim the rescue violates their constitutional rights and European Union treaties. According to Bloomberg, a group of economists and university professors are seeking an emergency ruling blocking German approval for the package as part of a complaint at the Federal Constitutional Court in Karlsruhe. Bloomberg says the men argue the aid package violates the "no bailout-clause" in EU governing treaties. * GREECE: Banks, Insurers to Provide EUR8.1 Bil. in Financing ------------------------------------------------------------- Aaron Kirchfeld at Bloomberg News reports that the German Finance Ministry said German financial companies, including Deutsche Bank AG and Allianz SE, agreed to provide EUR8.1 billion (US$10.3 billion) in financing to Greece to bolster the debt-stricken nation. Banks and insurers will make available EUR4.8 billion in financing to replace Greek government bonds expiring by May 6, 2013, by purchasing new bonds or providing other forms of financing, Bloomberg says, citing a statement distributed by the Finance Ministry Friday. According to Bloomberg, they will also replace EUR3.3 billion in expiring credit lines with new ones or other financing. Bloomberg notes companies that have publicly pledged to support the measures include Deutsche Bank and Commerzbank AG, Germany's two biggest lenders, DZ Bank AG, HVB Group, Allianz and Munich Re. The country's banks have EUR34.4 billion and insurers EUR9 billion in exposure to Greece in the form of loans and bonds, Bloomberg discloses, citing German financial regulator BaFin. ============= I C E L A N D ============= KAUPTHING BANK: Ex-CEO Arrested in Collapse Probe ------------------------------------------------- Hreidar Mar Sigurdsson, the former chief executive officer of Kaupthing Bank hf, was arrested after an investigation into the collapse of Iceland's largest bank, Elizabeth Amon at Bloomberg News reports, citing two people familiar with the probe. Bloomberg relates Iceland's special prosecutor said in a statement Reykjavik police arrested one person, who they didn't identify, on suspicion of forgery, market manipulation and violating the law in pursuit of personal financial gain, According to Bloomberg, the prosecutor said the individual is being held in solitary confinement to protect the integrity of the investigation. Times Online reports the Prosecutor Olafur Thor Hauksson said that he planned to ask that the former banker be kept in custody for two weeks to prevent the possibility of him tampering with evidence or interfering with the investigation. Times Online recalls Mr. Hauksson was appointed by the Iceland's post-crisis government to investigate whether there was any criminal activity in the lead up to the banking crash that crippled Iceland's economy, sending its currency into a tailspin, frightening off foreign investors and forcing out the country's former leaders. Times Online notes Britain's Serious Fraud Office is still conducting its own investigation into suspected fraud at Kaupthing, with a focus on efforts by the bank to attract British investors to its "high yield" deposit account, Kaupthing Edge. Times Online recounts when it opened the investigation in December, the British agency said that it would work with the Icelandic special prosecutor because it also looked closely at a series of decisions that appear to have allowed substantial value to be extracted from the bank in the weeks and days before its collapse. About Kaupthing Bank Headquartered in Reykjavik, Kaupthing Bank -- http://www.kaupthing.com/-- is Iceland's largest bank and among the Nordic region's 10 largest banking groups. With operations in more than a dozen countries, the bank offers a range of services including retail banking, corporate finance, asset management, brokerage, private banking, treasury, and private wealth management. Kaupthing was created by the 2003 merger of Bunadarbanki and Kaupthing Bank. In October 2008 the Icelandic government assumed control of Kaupthing Bank after taking similar measures with rivals Landsbanki and Glitnir. As reported by the Troubled Company Reporter on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. ============= I R E L A N D ============= CLOVERIE PLC: Moody's Junks Ratings on Four Classes of Notes ------------------------------------------------------------ Moody's Investors Service has taken these rating actions on notes issued by Cloverie Plc under Series 2004-72, 2004-77 & 2005-04 (relating to the US Onyx AAA portfolio) and Series 2005-07 (relating to the US Onyx VIII portfolio). Issuer: Cloverie plc - Series 2004-72 and 2004-77 and 2005-04 -- EUR30,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2024, Downgraded to Caa3; previously on Feb 23, 2010 Downgraded to Ba1 -- EUR50,000,000 Class C Secured Floating Rate Series 77, Downgraded to Caa3; previously on Feb 23, 2010 Downgraded to Ba1 -- US$50,000,000 Class C Secured Floating Rate Series 2005-04, Downgraded to Caa3; previously on Feb 23, 2010 Downgraded to Ba1 Issuer: Cloverie Plc - Series 2005-07 (US Onyx) -- US$25,000,000 Class C Secured Floating Rate Series 2005-07, Downgraded to Caa3; previously on Mar 11, 2009 Downgraded to Ba2 The transactions are synthetic collateralized debt obligations backed by static portfolios of US RMBS securities all originated in 2004 and 2005. Upon a credit event, losses on the defaulted securities are fixed at 20%. These synthetic transactions are structured in such a way so as to replicate certain features of cashflow transactions through the use of excess spread and a payment waterfall. Moody's notes that the rating actions taken are a result of a deterioration of the credit quality of the reference portfolios. This can be observed through a decline in the average credit rating (as measured by an increase in the Weighted Average Rating Factor or "WARF"). The current portfolio WARF is 453 versus a WARF of 262 at the time of the previous rating action in Feb 2010 for US Onyx AAA. For the US Onyx VIII portfolio, the current WARF is 786 compared to 363 in Jan 2009. In particular, Moody's notes a significant risk of credit event on two US Onyx AAA portfolio securities, namely RASC Series 2004-KS7 Trust Class A-II-B3, currently rated Caa2, and RASC Series 2004- KS9 Trust Class A-II-3, rated B3. There are also two securities with a high risk of credit event in the US Onyx VIII portfolio, RASC Series 2004-KS9 Trust Class A-II-3 and CWALT, Inc. Mortgage Pass-Through Certificates, Series 2005-14 Cl. 2-A-3 currently rated Caa2. These securities remain on watch for downgrade. The default of these two securities could lead to losses on the rated notes as the credit enhancement is thin and the benefit provided by the excess spread mechanism, which offsets losses by residual interest, is uncertain and highly dependent on the timing of default and amortization of the portfolio securities. Moody's also explained that in arriving at the rating action noted above, the ratings of subprime, Alt-A and Option-ARM RMBS which are currently on review for possible downgrade were stressed. For purposes of monitoring its ratings of SF CDOs with exposure to 2005-2007 vintage RMBS, Moody's used certain projections of the lifetime average cumulative losses as set forth in Moody's press releases dated January 13th for subprime, January 14th for Alt-A, and January 27th for Option-ARM. Based on the anticipated ratings impact of the updated cumulative loss numbers, the stress varied based on vintage, current rating, and RMBS asset type. For purposes of monitoring its ratings of SF CDOs with exposure to pre-2005 vintage RMBS, Moody's considered the various factors indicating continued negative performance that were described in Moody's press releases dated April 8th for subprime, April 12th for Option-ARM and April 13th for Alt-A. Such seasoned deals will have varying stress based on RMBS asset type. For 2005 Alt-A and Option-ARM securities, securities that are currently rated Aaa or Aa were stressed by eleven notches, and securities currently rated A or Baa were stressed by eight notches. Those securities currently rated in the Ba or B range were stressed to Caa3, while current Caa securities were treated as Ca. For 2005 subprime RMBS, those currently rated Aa, A or Baa were stressed by five notches, Ba rated securities were stressed to Caa3, and B or Caa securities were treated as Ca. Moody's noted that the stresses applicable to categories of 2005- 2007 subprime RMBS that are not listed above will be two notches if the RMBS ratings are on review for possible downgrade. For pre-2005 Alt-A, Aaa rated securities were stressed by four notches, Aa rated securities by six notches, and A or Baa rated securities by nine notches. Pre-2005 Option-ARM securities currently rated Aaa were stressed by two notches, Aa and A by six notches, and Baa by nine notches. For pre-2005 subprime, Aaa and Aa rated securities were stressed by two notches, A rated securities were stressed by six notches, and Baa rated securities were stressed by nine notches. All subprime, Alt-A and Option-ARM RMBS securities which originated prior to 2005, are currently rated Ba or below, and are also currently on review for possible downgrade have been stressed to Ca. Moody's further explained that these stresses are based on a preliminary sample analysis of deals from a given vintage and asset type, and that they will be utilized in its SF CDO rating analysis while subprime, Alt-A and Option-ARM securities remain on review for downgrade. Current public ratings will be used for securities that have undergone an in depth review by Moody's RMBS team, and that are no longer on review for downgrade. Moody's also performed a number of sensitivity analyses with various assumptions of weighted average life for each portfolio security and for the rated liabilities. Moody's continues to monitor this transaction using primarily the methodology and its supplements for SF CDOs as described in Moody's Special Report below: -- Moody's Approach to Rating SF CDOs (August 2009) In deriving its ratings, Moody's uses the collateral instrument's current rating-based expected loss, Moody's recovery rate table, and the original rating of the instrument along with its average life to infer an unadjusted default probability. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of 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, and specific documentation features. 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. MICHAEL TIMONEY: Judge Grants GBP5.6-Mil. Summary Judgment ---------------------------------------------------------- Donegal Democrat reports that the High Court's Mr. Justice Peter Kelly has granted a summary judgment of GBP5.6 million against Michael and Maureen Timoney, directors of Michael Timoney and Son Development Ltd. According to the report, ACC Bank obtained the order on foot of guarantees for three commercial loans given to the company in 2004 and 2006. The report notes that while the couple's counsel asked for a three-month postponement on the order to allow the receiver a chance to sell some of the 23 properties the company has built at Ballinamore, Co. Leitrim, it was agreed that it was unlikely any of the properties would sell during the time. Michael Timoney and Son Development Ltd. went into receivership on Jan. 19. =================== L U X E M B O U R G =================== COLT GROUP: S&P Gives Positive Outlook; Affirms 'BB-' Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said that it revised its outlook on European business communications and IT managed services provider Colt Group S.A. and Colt Technology Services Ltd. to positive from stable. At the same time, S&P affirmed the 'BB-' long-term corporate credit ratings on all Colt entities. "The outlook revision reflects that Colt has steadily improved its profitability, continues to generate free operating cash flow, and maintains healthy credit metrics," said Standard & Poor's credit analyst Helen O'Toole. The ratings are constrained by Colt's lack of a clear, publicly communicated financial policy and by business risk considerations that include: the highly competitive nature of the telecommunications industry; Colt's scale compared with its major competitors; relatively high customer churn, with short contracts for some of its telecoms services; and its exposure to intrinsic technological telecoms risks. S&P believes these constraints are mitigated by S&P's view of Colt's "intermediate" financial risk profile, which is supported by Colt's solid credit metrics, adequate liquidity position, and positive free operating cash flow generation. In addition, supportive major shareholders FMR LLC (A+/Stable/A-1), FIL Ltd. (BBB+/Stable/A-2), and other Fidelity entities, have provided significant financial support in the past. In 2009, the group's total revenues declined by 3.2% versus 2008, to EUR1,622.5 million, mainly due to a steep 12% decline in voice revenues (41% of total revenues) due to regulatory and pricing pressures. Revenue continued to decline in the first quarter of 2010. Data revenue growth decelerated in 2009 to 0.5% as demand for older data products fell. However, this was more than offset by high demand for Colt's Ethernet services. Colt's managed services division continued to perform well, recording 24.6% year- on-year growth in revenues, mainly due to new data-center contracts. Managed services now account for just under 10% of total group revenues. The shifting revenue mix away from lower- margin voice products toward higher-margin data and managed services has improved Colt's profitability, such that the group's reported EBITDA margin increased to 19.6% in 2009 from 16.5% in 2007. The EBITDA margin was also boosted by cost-control measures: selling, general, and administration costs were reduced by 4.7% in financial 2009. "The positive outlook reflects S&P's view that if Colt continues to improve its profitability measures through the changing business mix and cost-control measures, while maintaining an adequate liquidity profile and continuing to generate sustainable positive FOCF, S&P could upgrade the ratings by one notch," said Ms. O'Toole. Furthermore, the outlook reflects S&P's view that Colt will take a prudent approach to any return of funds to shareholders or business expansion. There is capacity for debt incurrence at the current rating, provided that any releveraging of the group's balance sheet is controlled and implemented relatively gradually, and that adjusted debt to EBITDA remains below 2.0x. A rapid increase in debt to 2.0x EBITDA, in particular for the distribution of funds to shareholders, could delay or constrain any rating upside, however. The rating could come under pressure if Colt's ongoing operating performance were to be materially weaker than S&P anticipates as a result of increased customer churn or competition, if there were to be a significant deterioration in the group's current liquidity position and cash generation, or if leverage were to increase very rapidly, such that adjusted debt to EBITDA exceeded 2.0x over the next year. =========== P O L A N D =========== BANK BPH: To Post Loss This Year; Mulls Job Cuts ------------------------------------------------ Marta Waldoch and Nathaniel Espino at Bloomberg News report that Bank BPH SA will post a loss this year as it cuts jobs and exits some businesses. According to Bloomberg, BPH said in a statement Friday the bank, which had a net loss of PLN54.4 million (US$16.4 million) in the first three months of this year, plans to cut as many as 1,514 jobs by the end of 2011. BPH, Bloomberg says, is struggling with a slowing economy in Poland after it merged with GE's other banking unit in the eastern European country. BPH, as cited by Bloomberg, said provisions for bad debt almost tripled in the first quarter, driven mostly by defaults on the consumer-loan portfolio. Bank BPH SA -- http://www.bph.pl/-- is a Poland-based bank offering its services for corporate and individual clients. Bank BPH SA specializes in the provision of underwriting, leasing, factoring and other financial services; the issuance of banking securities; the issuance of payment cards; the purchase and sale of receivables, and the issuance of convertible bonds. In addition, Bank BPH SA is engaged in the purchase and sale of property and receivables secured by mortgage; the provision of consultancy services; the safekeeping of valuables and securities, and allied activities. Bank BPH SA provides its clients with banking services via network of branches and automated teller machines (ATM), as well as online. On December 31, 2009, it merger with GE Money Bank SA. Bank BPH SA belongs to General Electric Capital Corporation capital group. * * * As reported by the Troubled Company Reporter-Europe on Jan. 6, 2010, Moody's Investors Service upgraded Bank BPH SA's bank financial strength rating to D, mapping to a baseline credit assessment of Ba2, from a BFSR of D- (BCA of Ba3). The rating has a stable outlook. =========== R U S S I A =========== CREDIT EUROPE: Fitch 'BB-' Assigns Issuer Default Rating -------------------------------------------------------- Fitch Ratings has assigned Russia's Credit Europe Bank Ltd a Long- term Issuer Default Rating of 'BB-' with a Stable Outlook. CEBR's IDRs are underpinned by potential support from its parent bank, the Netherlands-based Credit Europe Bank N.V. (rated 'BB'/Stable). CEBR's Individual rating reflects its relatively small size, weak funding profile, high degree of balance sheet concentrations, a high share of foreign currency lending in the corporate book and a high level of unsecured lending in both the retail and corporate books. However, it also considers CEBR's expertise and successful track record in retail lending and considerable loss absorption capacity, which is supported by strong internal capital generation. Retail loans accounted for just over half of the gross loan book at end-2009. Foreign currency loans accounted for about 77% in the corporate book (including SMEs) but only 10% in the retail book. Unsecured lending accounted for a considerable 39% of the corporate loan book and a high 48% of the retail book on a net basis at end-2009. Exposure to top 20 borrowers accounted for almost 70% of corporate loans (including SMEs) and 139% of equity. Non-performing loans (NPLs, defined as loans overdue for over 90 days) increased to 7% of gross loans at end-2009 from 4.5% at end- 2008. In addition, 2.5% of gross loans were renegotiated. However, the current level of capitalization (regulatory ratio of 24.03% at end-Q110) provides CEBR with considerable loss absorption. Fitch estimates that, at end-Q110, CEBR could have more than doubled its statutory loan impairment reserves to about 32% of its gross loans from the current level of 15%, without breaching its minimum regulatory capital requirement of 10%. Wholesale funding accounted for a high 61% of total liabilities at end-2009 while domestically sourced customer deposits represented only 19%. Customer deposits sourced abroad via third parties (mostly related entities) accounted for another 19% of liabilities but are, in Fitch's view, less stable than domestic deposits. Parent funding accounted for 25% of liabilities at end-2009. The liquidity position of CEBR is supported by parent funding (up to the maximum of EUR750m). Following the repayment of a Eurobond in mid-April 2010, CEBR had about RUB10.5bn in cash and equivalent and about RUB1.6bn of available for repo and unpledged securities. Fitch expects CEBR's liquidity position to improve further following a Eurobond issue in mid-May 2010. CEBR (former Finansbank Russia Ltd.) is a small commercial bank with a strong retail focus. CEBR is controlled by CEB which is part of Credit Europe Group. CEG is part of a larger FIBA Holding A.S., a Turkish conglomerate owned by Husnu Ozyegin, a prominent Turkish banker and businessman. CEBR's ratings have been assigned are: -- Long-term foreign and local currency IDRs: 'BB-'; Outlook Stable -- National Long-term rating: 'A+(rus)'; Outlook Stable -- Short-term foreign currency IDR: 'B' -- Individual Rating: 'D' -- Support Rating: '3' In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs. TATNEFT OAO: Fitch Affirms Issuer Default Rating at 'BB' -------------------------------------------------------- Fitch Ratings has affirmed Tatneft's Long-term Issuer Default Rating at 'BB' and its Short-term IDR at 'B'. The Outlook on the Long-term IDR is Stable. The affirmation of Tatneft's ratings reflects: improved corporate governance; substantial and developed hydrocarbon reserves and the remaining life of these reserves; progress on a new refinery; and commensurate credit metrics. Tatneft's ratings are constrained by the characteristics of its asset base which reflects its mature oil reserves with a high sulphur content, high lifting costs and a low basic replacement ratio. In addition, the company's limited proprietary refining capacity results in lower profitability, compared with Russian peers, and higher sensitivity to volatile oil prices. During 2009, Tatneft benefited from lower (-29%) production and export taxes, as the federal government has shown its willingness to reduce the tax burden on the oil industry, and reduced operating expenditure (-10%). Despite significantly lower oil prices (-24% in rouble terms), the company reported significantly stronger EBITDA (+82%) and an EBITDA margin compared with 2008. Fitch expects cost inflation to result in a somewhat weaker EBITDA margin in 2010. Tatneft's ratings are based on its standalone profile. Tatneft is 36% (indirectly) owned by the Republic of Tatarstan ('BBB-'/Stable/'F3'), but its overall legal, operational and strategic links with the republic are relatively modest. Fitch considers support to be largely intangible and notes certain constraints, including that the company's dividends appear not to be fully discretionary. Tatarstan's ability to direct financial support from the republic's banking sector to Tatneft is relatively limited, while the republic's dependence on Tatneft is high compared with its industry peers. The Stable Outlook reflects the assumption that Tatneft will successfully refinance its US$2bn facility, due in July 2010, and raise adequate funding to finish its capex plans. Fitch expects the company's credit metrics to be noticeably weaker during 2010- 2012, but still commensurate with the current ratings. Under Fitch's oil price assumptions, net funds from operations (FFO) leverage is expected to remain below 2x and FFO interest coverage is anticipated to remain around 10x. Tatneft raised US$1.5 billion (RUB48bn) in three- and five-year pre-export facilities in October 2009 to co-finance the remaining refinery-related capex. However, the increased cost of funding -- despite a pledge over oil export receivables as security -- is expected to lead to weaker interest coverage in 2010 compared with 2009. Tatneft is expected to finalize negotiations on refinancing its existing US$2 billion secured facility by June 2010. =========================== U N I T E D K I N G D O M =========================== ALBURN REAL: S&P Junks Ratings on Three Classes of Notes -------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on Alburn Real Estate Capital Ltd.'s class B, C, D, and E notes. At the same time, S&P affirmed the class A notes. The rating actions reflect S&P's view that the likelihood that the class B to E notes will repay in full by legal final maturity has reduced. At closing, Alburn used the proceeds from the note issuance to make a senior ranking secured loan to the borrower. A portfolio of 45 properties located across the U.K. secures the loan. In S&P's opinion, the properties are generally what S&P would categorize as secondary quality. The outstanding senior loan (and note) balance is GBP185.2 million. The loan is due to mature in October 2013 and legal final maturity of the notes is October 2016. In April 2010, the reported market value of the properties was GBP135.045 million, resulting in senior and whole loan-to-value (LTV) ratios of 133.7% and 142.5%, respectively. The reported market value shows virtually no change from the April 2009 market value. However, reported annual income fell to GBP14.80 million from GBP16.00 million over the same period. Additionally, the April 2010 reported estimated rental value of the properties indicates the portfolio is over-rented. In S&P's opinion, the secondary nature of the portfolio, potential for loss of income from lease expiries, and decline in estimated rental value are all factors that are likely to restrict material value appreciation of the asset portfolio. However, S&P believes that the class A notes and possibly the class B notes could be repaid in full if the borrower is able to successfully sell down a large proportion of the portfolio. In such circumstances, S&P believes that by the legal final maturity date the issuer could repay the class A notes either from sale proceeds or from refinancing. Similarly, repayment of the class B notes could also be achieved albeit with a significantly greater degree of uncertainty, in S&P's view. Further rating actions are possible as the timing and amount of sale proceeds becomes known. Ratings List Alburn Real Estate Capital Ltd. GBP188.05 Million Commercial Mortgage-Backed Secured Floating-Rate Notes Ratings Lowered Ratings ------- Class To From ----- -- ---- B B BB C CCC BB- D CCC- B E CCC- B- Rating Affirmed Class Rating ----- ------ A BBB- BRITISH AIRWAYS: Cabin Crew Rejects Latest Pay Offer to End Row --------------------------------------------------------------- Pilita Clark at The Financial Times reports that British Airways plc's cabin crew rejected the airline's latest offer to resolve a long-running row over staffing levels, raising the prospect of a third strike at the loss-making carrier this year. According to the FT, leaders of the Unite union representing the flight attendants will meet today, May 10, to decide what form of action to take after around 81% of their 12,000 BA members voted against the offer in a ballot that closed at midnight on Thursday, April 6. There was a turnout of 71%, the FT states. The FT relates Unite's joint general secretaries, Derek Simpson and Tony Woodley, called on the airline to take notice of the result and immediately address outstanding concerns. The Troubled Company Reporter-Europe, citing the Financial Times, reported on May 5, 2010, that Mr. Woodley said Unite could not recommend the proposal because BA had laid down "vindictive and discriminatory" conditions for restoring the discounted travel rights withdrawn from striking crew after the March stoppages. Mr. Woodley, as cited by the FT, said BA had also failed to address "draconian" disciplinary actions against more than 50 staff suspended on mostly "entirely trivial" charges arising from the dispute. The FT disclosed Mr. Woodley said unless the management resolved these issues, after what most expect to be a vote against the new offer, "an early resumption of industrial action is not only possible but likely". As reported by the Troubled Company Reporter-Europe on May 3, 2010, Bloomberg News said that BA's cabin crew began voting on April 30 on the latest pay deal. Bloomberg disclosed the airline's latest proposal involves a two-year pay deal pegging wages for 12,000 flight attendants to U.K. inflation from the start of next year. The plan would also restore 184 crew posts removed in November, and introduce monthly travel payments in lieu of scrapping other allowances, according to Bloomberg. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on March 19, 2010, Moody's Investors Service lowered to B1 from Ba3 the Corporate Family and Probability of Default Ratings of British Airways plc; and the senior unsecured and subordinate ratings to B2 and B3, respectively. Moody's said the outlook is stable. This concludes the review that was initiated on November 10, 2009. The rating action reflects Moody's view that credit metrics will not be commensurate with the previous rating category in the medium term. Moody's expect furthermore that metrics will be burdened in the foreseeable future by the company's significant pension deficit, which was at GBP2.6 billion for the APS and NAPS schemes combined as of September 2009 (under IAS). Moody's nevertheless understand that under the current agreement with the trade unions, the cash contributions to these deficits will be frozen at GBP330 million per year for three years, subject to approval by the Pensions Regulator and the trustees. EMI GROUP: Terra Firma Investors to Vote on Cash Call Today ----------------------------------------------------------- Martin Arnold at The Financial Times reports that Guy Hands, chairman of Terra Firma, faces a crucial test today, May 10, when his investors will vote on whether to pump an extra GBP105 million into EMI to stop the music group falling into the hands of its lender Citigroup. According to the FT, Mr. Hands needs to secure three-quarters of the votes cast by its investors -- adjusted for the size of their commitments -- to shore up EMI's finances for at least another year. The FT relates people close to Mr. Hands said he was confident of securing enough votes to raise the cash he needed from investors to make up shortfalls in EMI's earnings this year against the music company's loan covenants. The FT says if investors do not agree to provide the extra money, Mr. Hands is expected to seek to raise the cash from large co-investors, such as Canada Pension Plan, which could dilute the Terra Firma investors. Terra Firma must tell Citigroup, which holds all of EMI's GBP3.2 billion debts, by Friday, May 14, whether it has enough resources to "cure" breaches of the music group's covenants for the year to March 2011, the FT states. The FT notes if investors agree to put up the GBP105 million, Mr. Hands is planning to ask them to provide a further GBP255 million to ensure EMI respects the terms of its loans until they mature in 2015. Terra Firma has invested 30% of its last two funds in the music group, the FT discloses. EMI Group Ltd. -- 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. I-LEVEL: Engine Buys Social Media Unit Jam ------------------------------------------ Matt Williams at campaignlive.co.uk reports that Engine has acquired Jam, the social media unit of i-level, for an undisclosed sum. According to the report, Alex Miller, the agency's managing director will join Engine as part of the deal, along with head of strategy Jamie Kenny, director Richard Costa-d'sa and the 20- strong Jam team. Jam is the only standalone division in i-level, the report notes. It is not known whether the administrator will consider selling off any other departments in similar deals, the report states. As reported by the Troubled Company Reporter-Europe on May 7, 2010, the Financial Times said i-level went into administration after losing a large contract for government advertising. The FT disclosed Zolfo Cooper was called in as administrator by i-level's directors on May 4 after the agency suffered cashflow problems. i-level is an independent digital marketing agency. The agency has about 140 employees, in disciplines including online display advertising, search marketing, social media and mobile marketing, according to the Financial Times. PORTSMOUTH FOOTBALL: Debts Soar to GBP135MM, Administrators Say --------------------------------------------------------------- BBC News reports that Portsmouth's administrators have revealed the relegated Premier League club's debts now stand at GBP135 million from GBP120 million in April. The report relates the news comes on the day creditors have approved the drafting of a debt-repayment plan that will enable the club to emerge from administration. According to the report, the club is offering to pay at least 20 pence in the pound over five years, and Pompey's current owner Balram Chainrai has said small creditors (those owed less than GBP2,500) and charities will be paid in full at a total cost to him of almost GBP200,000. The report says the new plan -- a Company Voluntary Arrangement (CVA) -- will be drawn up by the club's joint administrators from UHY Hacker Young and distributed within 10 business days of Thursday's meeting. Another meeting will then be arranged within 14-28 days to approve the CVA, which will require the backing of 75% of the club's unsecured creditors (based on amounts owed), the report states. Portsmouth's so-called "football creditors" must be repaid first and in full under football's rules, the report discloses. Mr. Chainrai will also get his outstanding GBP14.2 million loan repaid in full but his three predecessors -- Sacha Gaydamak, Sulaiman Al-Fahim and Ali Al-Faraj-- will have to accept the same reduced rations on offer to the non-football, unsecured creditors, the report says. Under the draft plan, the company Portsmouth City Football Club will be liquidated after nine months and a new one set up, the report notes. It was made clear in Thursday's meeting that the alternative to this plan would mean the creditors would see nothing, the report relates. As reported by the Troubled Company Reporter-Europe, Bloomberg News said Portsmouth on Feb. 26 became the first team in England's Premier League to go into administration after U.K. authorities tried to force its closure over unpaid tax of GBP12.1 million. 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. RANGERS FOOTBALL: Fans May Boycott Lloyds on Lack of Support ------------------------------------------------------------ BBC News reports that Lloyds Banking Group has been warned that Rangers fans will boycott it unless it continues to support the club, which owed the bank GBP31 million. BBC relates that at the bank's annual general meeting in Edinburgh, shareholder John Macpherson warned a boycott could lead to more than GBP2 billion of business being withdrawn. According to BBC, Mr. Macpherson, who has shares in both the bank and Rangers, warned Lloyds chairman Sir Win Bischoff the global community of fans and the club shareholders intended to withdraw all deposits and savings from Lloyds Banking Group and its subsidiaries unless the bank becomes more supportive to the club. BBC notes Mr. Macpherson said this could lead to Lloyds "losing anything between GBP1.2 billion to GBP2.6 billion between investments, shares and the closure of all accounts". As reported by the Troubled Company Reporter-Europe on March 10, 2010, Murray International Holdings, the majority owner of Ranger, was in takeover talks with a London-based property developer. The FT disclosed Sir David Murray has been seeking to sell the club, which is heavily indebted to Lloyds Banking Group, for some months. Rangers' operations are said to be in the control of the bank, with senior staff employed on short-term arrangements, the FT said. According to the FT, a statement on the club's Web site said that Murray International Holdings were in informal talks with interested parties, including Andrew Ellis, a former director of Queen's Park Rangers. Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/ -- is a United Kingdom-based company engaged in the operation of a professional football club. The Company has launched its own Internet television station, RANGERSTV.tv. The station combines the use of Internet television programming alongside traditional Web-based services. Services offered include the streaming of home matches and on-demand streaming of domestic and European games, which include dedicated pre-match, half-time and post-match commentary. The Company will produce dedicated news magazine and feature programs, while the fans can also access a library of classic European, Old Firm and Scottish Premier League (SPL) action. Its own dedicated television studio at Ibrox provides onsite production, editing and encoding facilities to produce content for distribution on all media platforms. ROYAL BANK: Posts GBP248 Mil. Net Loss in First Quarter 2010 ------------------------------------------------------------ Andrew MacAskill and Jon Menon at Bloomberg News report that Royal Bank of Scotland posted a net loss of GBP248 million for the first quarter of 2010, compared with GBP902 million in the year-earlier period. Bloomberg notes RBS said in a statement Friday profit at its investment bank fell 58% to GBP1.47 billion (US$2.2 billion) from a profit of GBP3.47 billion a year earlier. According to Bloomberg, the government, which owns 83% of RBS, has about a GBP4-billion paper loss on its GBP45.5-billion investment. Bloomberg relates RBS Finance Director Bruce Van Saun said the bank held about GBP1.5 billion in Greek debt and about GBP400 million of unrealized losses. RBS Chief Executive Officer Stephen Hester, as cited by Bloomberg, said the lender is continuing to sustain "damaging losses" at its investment bank as a result of staff departures because of restraints on pay, with more than 1,000 investment bank employees left last year. "We spend a massive amount of time on the issue, if RBS does not have good people then it does not have a recovery," Bloomberg quoted Mr. Hester as saying. Bloomberg notes RBS said impairments dropped 14% to GBP2.68 billion in the first quarter from GBP3.1 billion in the last quarter of 2009. 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. WINDERMERE XI: S&P Lowers Ratings on Two Classes of Notes to 'D' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on all classes of Windermere XI CMBS PLC's notes after Windermere XI allocated principal losses to its class D and E notes at the most recent interest payment date. In March 2010, the servicer sold the property that secured the Shrewsbury Mortgage loan for GBP61.10 million, and made available to the issuer the net sale proceeds of GBP55.87 million to repay the notes. The outstanding loan balance was GBP75.37 million. On the April 2010 note interest payment date, the issuer used the net sale proceeds of GBP55.87 million to partially repay the class A notes. It also allocated the Shrewsbury Mortgage loan losses to the class D and E notes. As a consequence of the loss allocation, the issuer reduced the principal balance of the class E notes to zero, and reduced the principal balance of the class D notes by approximately 38% to GBP19.38 million. S&P has lowered its ratings on the class D and E notes to 'D' to reflect these losses, and have also downgraded the class A, B, and C notes to reflect S&P's opinion of the creditworthiness of the remaining loans. The Westville Mortgage loan is currently in special servicing and has been accelerated. A portfolio of 15 secondary properties across the U.K. secures this loan, the current balance of which is GBP74.22 million. The Government Income Portfolio loan is due to mature in October 2010. The loan is secured by a portfolio of 21 office properties that S&P would generally consider to be secondary quality. The properties are located across the U.K. and are let entirely, or mostly, to government-related entities. The current loan balance is GBP114.60 million. The three other loans in the pool (Devonshire House, Long Acre, and CAA House) are due to mature between January 2012 and April 2014, and are each secured against a single office property in London. Ratings List Windermere XI CMBS PLC GBP707.76 Million Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered Ratings ------- Class To From ----- -- ---- A BBB+ A B BBB- BBB C B- B D D CCC E D CCC =============== X X X X X X X X =============== * BOND PRICING: For the Week May 3 to May 7, 2010 ------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- KOMMUNALKREDIT 4.900 6/23/2031 EUR 72.63 KOMMUNALKREDIT 4.440 12/20/2030 EUR 69.38 OESTER VOLKSBK 5.270 2/8/2027 EUR 97.82 OESTER VOLKSBK 5.450 8/2/2019 EUR 72.63 REPUBLIC OF AUST 2.452 10/10/2025 EUR 78.66 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 19.11 BULGARIA -------- PETROL AD-SOFIA 8.375 10/26/2011 EUR 51.85 CYPRUS ------ INTERPIPE LTD 8.750 8/2/2010 USD 77.48 DENMARK ------- TRYG FORSIKRING 4.500 12/19/2025 EUR 74.61 FINLAND ------- MUNI FINANCE PLC 0.250 6/28/2040 CAD 22.31 MUNI FINANCE PLC 0.500 3/17/2025 CAD 49.29 MUNI FINANCE PLC 1.000 2/27/2018 AUD 64.34 MUNI FINANCE PLC 1.000 10/30/2017 AUD 65.66 MUNI FINANCE PLC 1.000 11/21/2016 NZD 65.57 MUNI FINANCE PLC 0.500 9/24/2020 CAD 63.08 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 15.69 ALCATEL SA 4.750 1/1/2011 EUR 16.24 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.48 ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 5.15 ATOS ORIGIN SA 2.500 1/1/2016 EUR 54.38 CALYON 6.000 6/18/2047 EUR 47.68 CAP GEMINI SOGET 1.000 1/1/2012 EUR 44.76 CAP GEMINI SOGET 3.500 1/1/2014 EUR 44.93 CLUB MEDITERRANE 4.375 11/1/2010 EUR 49.22 DEXIA MUNI AGNCY 1.000 12/23/2024 EUR 62.43 EURAZEO 6.250 6/10/2014 EUR 59.52 FAURECIA 4.500 1/1/2015 EUR 21.46 GROUPE VIAL 2.500 1/1/2014 EUR 18.54 MAUREL ET PROM 7.125 7/31/2014 EUR 18.74 NEXANS SA 4.000 1/1/2016 EUR 70.70 PEUGEOT SA 4.450 1/1/2016 EUR 30.82 PUBLICIS GROUPE 3.125 7/30/2014 EUR 36.28 PUBLICIS GROUPE 1.000 1/18/2018 EUR 46.36 RHODIA SA 0.500 1/1/2014 EUR 46.29 SOC AIR FRANCE 2.750 4/1/2020 EUR 21.06 SOITEC 6.250 9/9/2014 EUR 12.52 TEM 4.250 1/1/2015 EUR 58.59 THEOLIA 2.000 1/1/2014 EUR 14.14 VALEO 2.375 1/1/2011 EUR 46.67 ZLOMREX INT FIN 8.500 2/1/2014 EUR 45.38 ZLOMREX INT FIN 8.500 2/1/2014 EUR 45.38 GERMANY ------- DEPFA PFANDBRIEF 6.759 2/22/2019 EUR 65.39 DEUTSCHE BK LOND 1.000 3/31/2027 USD 46.31 DEUTSCHE BK LOND 3.000 5/18/2012 CHF 71.91 ESCADA AG 7.500 4/1/2012 EUR 16.24 EUROHYPO AG 5.000 5/15/2027 EUR 94.81 L-BANK FOERDERBK 0.500 5/10/2027 CAD 44.55 LB BADEN-WUERTT 5.250 10/20/2015 EUR 33.97 LB BADEN-WUERTT 2.500 1/30/2034 EUR 67.10 QIMONDA FINANCE 6.750 3/22/2013 USD 4.00 RENTENBANK 1.000 3/29/2017 NZD 70.53 SOLON AG SOLAR 1.375 12/6/2012 EUR 45.96 GREECE ------ HELLENIC REP I/L 2.900 7/25/2025 EUR 74.44 HELLENIC REP I/L 2.300 7/25/2030 EUR 64.46 HELLENIC REPUBLI 4.500 9/20/2037 EUR 69.26 HELLENIC REPUBLI 4.600 9/20/2040 EUR 69.37 YIOULA GLASSWORK 9.000 12/1/2015 EUR 62.01 YIOULA GLASSWORK 9.000 12/1/2015 EUR 61.13 HUNGARY ------- REP OF HUNGARY 2.110 10/26/2017 JPY 86.85 IRELAND ------- ALLIED IRISH BKS 5.625 11/29/2030 GBP 74.25 ALLIED IRISH BKS 5.250 3/10/2025 GBP 75.75 DEPFA ACS BANK 5.125 3/16/2037 USD 75.32 DEPFA ACS BANK 5.125 3/16/2037 USD 74.67 DEPFA ACS BANK 0.500 3/3/2025 CAD 31.67 DEPFA ACS BANK 4.900 8/24/2035 CAD 69.72 DEPFA ACS BANK 5.250 3/31/2025 CAD 72.54 IRISH NATIONWIDE 5.500 1/10/2018 GBP 64.87 ITALY ----- BANCA INTESA SPA 6.984 2/7/2035 EUR 57.88 BEATRICE FOODS 1.000 11/19/2026 USD 29.00 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 35.98 BREEZE 4.524 4/19/2027 EUR 68.75 GALLERY CAPITAL 10.125 5/15/2013 USD 19.95 GLOBAL YATIRIM H 9.250 7/31/2012 USD 73.13 HELLAS III 8.500 10/15/2013 EUR 35.56 IT HOLDING FIN 9.875 11/15/2012 EUR 14.98 LA VEGGIA FIN 7.125 11/14/2004 EUR 50.00 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 70.05 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 70.65 NETHERLANDS ----------- APP INTL FINANCE 11.750 10/1/2005 USD 1.05 ARPENI PR INVEST 8.750 5/3/2013 USD 61.88 ARPENI PR INVEST 8.750 5/3/2013 USD 61.88 BK NED GEMEENTEN 0.500 6/27/2018 CAD 70.34 BK NED GEMEENTEN 0.500 2/24/2025 CAD 48.67 BRIT INSURANCE 6.625 12/9/2030 GBP 75.50 DGS INTL FIN BV 10.000 6/1/2007 USD 0.01 ELEC DE CAR FIN 8.500 4/10/2018 USD 59.25 EM.TV FINANCE BV 5.250 5/8/2013 EUR 5.35 ENERGY GROUP O/S 7.550 10/15/2027 USD 18.00 ENERGY GROUP O/S 7.425 10/15/2017 USD 18.00 INDAH KIAT INTL 12.500 6/15/2006 USD 0.01 INDAH KIAT INTL 11.875 6/15/2002 USD 0.01 NATL INVESTER BK 25.983 5/7/2029 EUR 42.78 NED WATERSCHAPBK 0.500 3/11/2025 CAD 49.33 Q-CELLS INTERNAT 5.750 5/26/2014 EUR 68.50 Q-CELLS INTERNAT 1.375 2/28/2012 EUR 70.51 RBS NV EX-ABN NV 2.910 6/21/2036 JPY 75.65 RBS NV EX-ABN NV 7.540 6/29/2035 EUR 73.08 TEMIR CAPITAL 9.500 5/21/2014 USD 33.00 TEMIR CAPITAL 9.000 11/24/2011 USD 30.50 TURANALEM FIN BV 8.500 2/10/2015 USD 48.30 TURANALEM FIN BV 7.875 6/2/2010 USD 46.75 TURANALEM FIN BV 8.250 1/22/2037 USD 47.01 TURANALEM FIN BV 8.250 1/22/2037 USD 48.49 TURANALEM FIN BV 8.000 3/24/2014 USD 46.25 TURANALEM FIN BV 7.750 4/25/2013 USD 47.37 TURANALEM FIN BV 8.000 3/24/2014 USD 47.00 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 38.40 NORSKE SKOGIND 7.000 6/26/2017 EUR 72.56 POLAND ------ POLAND-REGD-RSTA 2.810 11/16/2037 JPY 70.63 REP OF POLAND 4.250 7/20/2055 EUR 73.35 REP OF POLAND 3.300 6/16/2038 JPY 72.98 REP OF POLAND 3.220 8/4/2034 JPY 74.30 REP OF POLAND 2.648 3/29/2034 JPY 65.35 RUSSIA ------ MRSK URALA 8.150 5/22/2012 RUB 89.99 SIBIRTELECOM 9.750 9/16/2010 RUB 100.99 VOLGATELECOM 9.500 11/30/2010 RUB 99.92 SPAIN ----- BANCAJA EMI SA 2.755 5/11/2037 JPY 70.95 BBVA SUB CAP UNI 2.750 10/22/2035 JPY 69.87 MINICENTRALES 4.810 11/29/2034 EUR 67.69 SWEDEN ------ SWEDISH EXP CRED 0.500 12/17/2027 USD 44.01 SWITZERLAND ----------- CYTOS BIOTECH 2.875 2/20/2012 CHF 56.74 UBS AG JERSEY 9.000 7/19/2010 USD 60.00 UBS AG JERSEY 9.350 7/27/2010 USD 60.65 UBS AG JERSEY 9.000 8/13/2010 USD 65.10 UBS AG JERSEY 9.500 8/31/2010 USD 66.85 UBS AG JERSEY 10.000 10/25/2010 USD 66.35 UBS AG JERSEY 3.220 7/31/2012 EUR 61.70 UBS AG JERSEY 10.140 12/30/2011 USD 14.92 UBS AG JERSEY 9.350 9/21/2011 USD 67.10 UBS AG JERSEY 11.150 8/31/2011 USD 41.10 UBS AG JERSEY 10.360 8/19/2011 USD 54.60 UBS AG JERSEY 10.650 4/29/2011 USD 16.30 UBS AG JERSEY 11.030 4/21/2011 USD 21.50 UBS AG JERSEY 10.820 4/21/2011 USD 22.29 UBS AG JERSEY 16.160 3/31/2011 USD 45.15 UBS AG JERSEY 10.990 3/31/2011 USD 30.88 UBS AG JERSEY 11.400 3/18/2011 USD 25.78 UBS AG JERSEY 11.330 3/18/2011 USD 18.08 UBS AG JERSEY 12.800 2/28/2011 USD 35.02 UBS AG JERSEY 8.250 2/28/2011 USD 70.78 UBS AG JERSEY 15.250 2/11/2011 USD 12.32 UBS AG JERSEY 10.000 2/11/2011 USD 61.60 UBS AG JERSEY 16.170 1/31/2011 USD 13.78 UBS AG JERSEY 14.640 1/31/2011 USD 38.55 UBS AG JERSEY 13.900 1/31/2011 USD 36.15 UBS AG JERSEY 13.000 6/16/2011 USD 50.87 UBS AG JERSEY 9.000 5/18/2010 USD 61.43 UBS AG JERSEY 9.000 6/11/2010 USD 60.10 UBS AG JERSEY 9.000 7/2/2010 USD 60.30 UNITED KINGDOM -------------- ALPHA CREDIT GRP 2.940 3/4/2035 JPY 42.16 BARCLAYS BK PLC 7.610 6/30/2011 USD 54.33 BARCLAYS BK PLC 11.650 5/20/2010 USD 38.91 BARCLAYS BK PLC 10.600 7/21/2011 USD 42.37 BARCLAYS BK PLC 9.000 6/30/2011 USD 44.71 BARCLAYS BK PLC 8.550 1/23/2012 USD 11.55 BRADFORD&BIN BLD 5.500 1/15/2018 GBP 32.48 BRADFORD&BIN BLD 2.875 10/16/2031 CHF 74.33 BRADFORD&BIN BLD 5.750 12/12/2022 GBP 32.96 BRADFORD&BIN PLC 6.625 6/16/2023 GBP 30.21 BROADGATE FINANC 5.098 4/5/2033 GBP 74.66 EFG HELLAS PLC 2.760 5/11/2035 JPY 70.64 ENTERPRISE INNS 6.375 9/26/2031 GBP 75.52 F&C ASSET MNGMT 6.750 12/20/2026 GBP 69.86 NATL GRID GAS 1.771 3/30/2037 GBP 45.56 NATL GRID GAS 1.754 10/17/2036 GBP 47.23 NBG FINANCE PLC 2.755 6/28/2035 JPY 74.12 NOMURA BANK INTL 0.800 12/21/2020 EUR 60.79 NORTHERN ROCK 4.574 1/13/2015 GBP 75.11 NORTHERN ROCK 5.750 2/28/2017 GBP 66.20 NORTHERN ROCK 9.375 10/17/2021 GBP 76.50 OJSC BANK NADRA 9.250 6/28/2010 USD 39.50 PUNCH TAVERNS 6.468 4/15/2033 GBP 72.08 ROYAL BK SCOTLND 4.243 1/12/2046 EUR 58.51 ROYAL BK SCOTLND 4.700 7/3/2018 USD 72.64 RSL COMM PLC 9.875 11/15/2009 USD 3.00 SPIRIT ISSUER 5.472 12/28/2028 GBP 76.00 TXU EASTERN FNDG 6.450 5/15/2005 USD 2.38 TXU EASTERN FNDG 6.750 5/15/2009 USD 2.38 UNIQUE PUB FIN 6.464 3/30/2032 GBP 66.72 WESSEX WATER FIN 1.369 7/31/2057 GBP 22.33 ********* 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. Joy A. Agravante, Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan 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 * * *