/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100616.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 16, 2010, Vol. 11, No. 117 Headlines B U L G A R I A KREMIKOVTZI AD: Bulgaria Approves Liquidation D E N M A R K TDC AS: S&P Raises Long-Term Corporate Credit Ratings to 'BB' F R A N C E CHAMARRE: In Receivership; Owes EUR7 Million LE MONDE: Extends Deadline for Bids to June 21 G E O R G I A GEORGIAN RAILWAY: S&P Assigns 'B+' Long-Term Issuer Credit Ratings G E R M A N Y PRIMACOM AG: To File for Insolvency Protection G R E E C E * Moody's Downgrades Greece's Government Bond Ratings to 'Ba1' * Moody's Downgrades Issuer Rating on the City of Athens to 'Ba1' I C E L A N D * ICELAND: Restrictions Imposed to Eradicate Cross-Ownership I R E L A N D LIMERICK INDEPENDENT: Directors Must Submit Statement of Affairs R O M A N I A CASA DE INSOLVENTA: Files for Insolvency R U S S I A ALROSA CO: Secures US$500 Mil. Loan From VTB to Refinance Debt S P A I N AYT DEUDA: S&P Affirms Rating on Class C Notes at 'BB' CABLEUROPA SA: Fitch Gives Stable Outlook; Affirms 'BB-' Rating CM BANCAJA: S&P Downgrades Rating on Class D Notes to 'B-' * SPAIN: Must Shore Up Savings Banks without EU's Help U K R A I N E YASYNOVATSKY MACHINERY: Court Launches Bankruptcy Proceedings U N I T E D K I N G D O M FIORENTE FUNDING: Moody's Downgrades Ratings on Notes to 'C' GH TAYBERRY: In Administration; 63 Jobs Affected LOGAN CDO: Moody's Cuts Rating on Super Senior Swap to 'Caa3' MAINSAIL CDO: Moody's Withdraws 'C' Ratings on Notes PILKINGTON'S TILES: In Administration; 380 Jobs at Risk RMAC 2004-NSP2: Moody's Cuts Rating on Class A3 Notes to 'Ba1' SIMPLY COFFEE: Enters Administration; 13 Jobs Affected TALARDY HOTEL: In Administration; Buyer Being Sought TRAVELODGE HOTELS: DIC Injected GBP20.1 Mil. to Relax Covenants VANTIS PLC: Shares Suspended; Chief Executive Steps Down X X X X X X X X * EUROPE: Central Banks Can't Rescue Insolvent Governments ********* =============== B U L G A R I A =============== KREMIKOVTZI AD: Bulgaria Approves Liquidation --------------------------------------------- Sofia News Agency reports that Bulgaria has approved the liquidation of Kremikovtzi AD. The report relates Tsvetan Bankov, the assignee in bankruptcy, told Darik radio on Tuesday, "The decision for declaring Kremikovtzi bankrupt was taken on May 31. It is still not clear how the sale of its assets will proceed. No investors have declared interest so far." According to the report, the total debts of Kremikovtzi, which was declared insolvent in August last year, amount to BGN1.9 billion, whereas the market value of all of its assets has been estimated at BGN837 million. About Kremikovtzi Kremikovtzi AD Sofia -- http://www.kremikovtzi.com/-- is a Bulgaria-based company principally engaged in the steel industry. Its production capacity includes a complete steel production cycle, from ore mining to finished products, such as hot rolled and cold rolled products (coils, slabs, plates, blooms and billets), different thickness wire rods and tubes. The Company's product range also includes coke and chemical products, flat products, ferro-alloys and metallurgical lime, and other products. The Company operates through a number of subsidiaries, including Ferosplaven zavod EOOD, NLA 2000 EOOD, Kremikovtzi Rudodobiv AD, Metalresource OOD and others. The Company is in 71%-owned by Finmetals Holding AD. ============= D E N M A R K ============= TDC AS: S&P Raises Long-Term Corporate Credit Ratings to 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it raised the long- term corporate credit ratings on Danish telecom operator TDC A/S and its immediate parent company Angel Lux Common S.A. to 'BB' from 'BB-'. At the same time, the 'B' short-term ratings on TDC and ALC were affirmed. The outlook is positive. "The upgrade primarily reflects S&P's view of TDC's solid operating performance and S&P's expectations that its credit measures are likely to improve further over the next 12 months," said Standard & Poor's credit analyst Matthias Raab. "S&P views the group's continuing focus on operating efficiencies, stabilizing revenue trends, and the use of free cash flow to reduce debt as the key factors behind this expected improvement." In addition, S&P raised the issue rating on TDC's senior secured facilities to 'BBB-' from 'BB+', two notches above the corporate credit rating. Moreover, S&P raised the issue ratings on TDC's euro medium-term notes, due 2012 and 2015, to 'BB' from 'BB-', and the issue ratings on ALC's unsecured notes, due 2016, to 'BB' from 'BB-'. In the first quarter of 2010, TDC's revenues and EBITDA (excluding redundancy costs) increased year on year by 1.8% and 8.1%, respectively. This was mainly achieved through modest revenue growth and strong cost-cutting efforts at TDC's Nordic business, positive foreign exchange movements, and higher landline and mobile telephony revenues at TDC's Swiss subsidiary Sunrise. S&P has reassessed its analytical treatment of the class A shares (preference shares or "Prefs") at ALC, which holds 88% of TDC's common shares. S&P now views these Prefs, which have voting rights, as "ephemeral equity" and no longer treat them as long- term, fixed-income-like securities. As of Dec. 31, 2009, the book value of the Prefs was Danish krone (DKK) 22.4 billion (EUR3 billion), which included accrued preferred returns. Overall, S&P views the failed disposal of Sunrise to France Telecom S.A. (A-/Stable/A-2) as mildly negative for the ratings. In S&P's opinion, the ratings on TDC are constrained primarily by the limited visibility of the group's financial policy and its shareholder and capital structure. Further constraints include its still high adjusted leverage and S&P's view of limited revenue growth in the mature, competitive, and regulated Danish market. These risks are partly offset by the group's position as the leading operator in the Danish telecoms market and its strong record of improving operating efficiencies. "The outlook is positive because it reflects S&P's view that there is potential for an upgrade in the next 18 months based on S&P's expectation that TDC is likely to maintain solid free cash flow generation and further improve its credit measures," said Mr. Raab. "Furthermore, an upgrade could be supported by increased visibility of the group's long-term shareholder remuneration policy, as well as its capital and shareholder structure." =========== F R A N C E =========== CHAMARRE: In Receivership; Owes EUR7 Million -------------------------------------------- Maggie Rosen at decanter.com reports that Chamarre has gone into receivership. The report recalls in 2008, the company's revenue was EUR6.3 million (GBP5.2 million) with a loss of EUR3.3 million (GBP2.75 million). This was on top of a further EUR7 million (GBP5.82 million) in debt from funds the company had raised in 2007 by selling nearly a quarter of shares to a holding vehicle comprised of cooperatives -- including Val d'Orbieu, Cave de Jurancon, Cellier des Dauphins and Cave de Rasteau. The report relates Chamarre said in a press release that despite strong growth, the global financial crisis and the debts it had incurred proved too much to bear in the short term. Chamarre is a French wine brand. LE MONDE: Extends Deadline for Bids to June 21 ---------------------------------------------- Matthew Campbell and Helene Fouquet at Bloomberg News report that Le Monde extended a deadline for investors to June 21 after French President Nicolas Sarkozy weighed in on the bids. Bloomberg relates Le Monde spokeswoman Anne Hartenstein on Monday said Mr. Sarkozy last week met with the afternoon daily's chief executive officer, Eric Fottorino, to discuss the newspaper's future. According to Bloomberg, Adrien de Tricornot, vice president of the Society of Editors labor group, said Mr. Fottorino told colleagues that Mr. Sarkozy expressed opposition to the bid from a group that includes Lazard Ltd. banker Matthieu Pigasse, Iliad SA founder Xavier Niel and Yves Saint Laurent Group partner Pierre Berge. Bloomberg notes the other "pre-offer" is from weekly news magazine Nouvel Observateur Chief Executive Officer Claude Perdriel and partners that Le Monde didn't identify in its statement on the bids on June 11. The parent company of Nouvel Observateur, Groupe SFA PAR, sent a letter on June 10 to Le Monde saying that the suitors are looking for partners for an investment of EUR80 million (US$98 million) to EUR100 million, Bloomberg says, citing SFA Chief Financial Officer Eric Bayle. Mr. Bayle, as cited by Bloomberg, said discussions are being held with multiple partners, declining to name them. Bloomberg relates a person familiar with the situation on Monday said that France Telecom SA is in talks with Nouvel Observateur's Perdriel that may lead to a joint investment in Le Monde. Bloomberg notes Le Monde on Monday said in an e-mailed statement that the chosen suitor will have to pay EUR10 million to enter exclusive negotiations. Other possible bidders identified by the newspaper, including Swiss publisher Ringier AG, had expressed concern about the speed of Le Monde's timetable for new partners, Bloomberg discloses. As reported by the Troubled Company Reporter-Europe on June 4, 2010, Gilles Van Kote, head of Le Monde's journalists' association, the main shareholder, as cited by The Times, said a takeover is inevitable, with the daily losing EUR25 million (GBP21 million) last year, the 10th year in a row it has been in the red amid a deepening crisis for the whole of France's national press. The Times disclosed with sales of EUR397 million, the group has debts of EUR125 million, including EUR25 million that has to be repaid to BNP Paribas, the bank, next year. On June 7, 2010, the Troubled Company Reporter-Europe, citing The Financial Times, reported that Le Monde is in a race against time to find new investors and faces insolvency by the end of July if it fails to recapitalize. Le Monde is a French newspaper. ============= G E O R G I A ============= GEORGIAN RAILWAY: S&P Assigns 'B+' Long-Term Issuer Credit Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services said it assigned its 'B+' long- term and 'B' short-term issuer credit ratings to Georgian Railway LLC, the vertically integrated rail infrastructure operator wholly owned by the Government of Georgia (B+/Stable/B). The outlook is stable. "The 'B+' long-term rating on GR is based on the company's stand- alone credit profile, which S&P assess at 'B+', and which reflects S&P's opinion of GR's creditworthiness before taking into account the potential for extraordinary government intervention," said Standard & poor's credit analyst Timon Binder. "The stand-alone credit profile reflects S&P's assessment of a "weak" business risk profile and an "aggressive" financial risk profile." The "weak" business risk profile in S&P's view is constrained by the geopolitical situation in the region and the high dependence of GR's cash flows on transit freight, which contributes the majority of GR revenues. The business risk profile is, in S&P's view, supported by GR's monopolistic position as a vertically integrated rail carrier in Georgia with its strategic location for the Transport Corridor Europe-Caucasus-Asia, and sound its profitability. The "aggressive" financial risk profile reflects S&P's view of the company's very high capital-expenditure program over the next few years, and its dependence on the sale of land freed by the Tbilisi Bypass project after 2013. However, despite the large projects being implemented, S&P expects funds from operations-to-adjusted debt ratios of about 20% over 2011-2013. In application of S&P's criteria for government-related entities, S&P assumes an "extremely high" likelihood that the Georgian government would provide timely and sufficient extraordinary support to GR in the event of financial distress. However, this assignment does not change the long-term rating on GR because the stand-alone credit profile is currently in line with the rating on the Government of Georgia. S&P understands that the realization of ambitious capital expenditure plans for infrastructure improvements and of the Tbilisi Bypass project are subject to the necessary debt-funding having been previously arranged. The stable outlook on GR reflects S&P's expectation that all liquidity lines will be concluded as planned and that the capital expenditure program will not be implemented until debt funding is confirmed and secured," said Mr. Binder. Should S&P believes that the pace of GR's capital expenditures might exceed its financial and operational performance, potentially threatening the anticipated debt ratios, or should S&P see that GR's operations weaken in any manner, S&P might lower the ratings. The ratings on GR are capped by the local currency long-term rating on the sovereign. If the sovereign rating or outlook improves, however, S&P currently does not expect that S&P would raise its ratings on GR in line with those on the sovereign. But this will likely depend on S&P's view of GR's stand-alone credit profile at such point in time. ============= G E R M A N Y ============= PRIMACOM AG: To File for Insolvency Protection ---------------------------------------------- CommsUpdate reports that PrimaCom AG said it will file for insolvency protection, after its shareholders failed to come to an agreement with creditors regarding repayment of a EUR29.2 million (US$35.7 million) loan. According to CommsUpdate, following rejection of a repayment proposal by creditors, PrimaCom's shareholders have said they are no longer willing to negotiate and therefore the board will prepare a bankruptcy petition. C21Media says Primacom's daily operations are not directly affected and will continue to function during the insolvency period. The company has been looking for a buyer since its debts grew to around EUR340 million, C21Media notes. On June 3, 2010, the Troubled Company Reporter-Europe, citing Dow Jones Newswires, reported that Kabel Deutschland Holding AG said it is interested in buying assets of PrimaCom. PrimaCom AG is a Germany-based holding company engaged in owning and operating cable television (TV) network in Germany. Its subscribers are offered digital television, pay-per-view, video- on-demand, telephone and high-speed Internet services to complement the Company's basic cable television offering. The Company's customers are connected to the 862 megahertz (MHz) networks and have access to more than 100 TV and radio programs. PrimaCom passes 1.4 million homes and serves approximately one million subscribers. The Company is 90.52% owned by Escaline Sarl, Luxembourg, through its indirect subsidiary Omega I Sarl. It operates mainly in six German states, including Berlin, Brandenburg, Sachsen, Sachsen-Anhalt, Thueringen, and Mecklenburg- Vorpommern. As of December 31, 2008, the Company had 28 wholly owned subsidiaries in Germany and Austria, as well as two majority owned subsidiaries in Germany, and one affiliate in Germany. =========== G R E E C E =========== * Moody's Downgrades Greece's Government Bond Ratings to 'Ba1' -------------------------------------------------------------- Moody's Investors Service has downgraded Greece's government bond ratings by four notches to Ba1 from A3, reflecting its view of the country's medium-term credit fundamentals. The rating action concludes the review for possible downgrade, which Moody's initiated on April 22, 2010. Moody's has also downgraded Greece's short-term issuer rating to Not-Prime from Prime-1. Greece's country ceilings for bonds and bank deposits are unaffected by the review and remain at Aaa (in line with the Eurozone's rating). The outlook on all ratings is stable. "The Ba1 rating reflects Moody's analysis of the balance of the strengths and risks associated with the Eurozone/IMF support package. The package effectively eliminates any near-term risk of a liquidity-driven default and encourages the implementation of a credible, feasible, and incentive-compatible set of structural reforms, which have a high likelihood of stabilizing debt service requirements at manageable levels," said Sarah Carlson, Vice President-Senior Analyst in Moody's Sovereign Risk Group and lead analyst for Greece. "Nevertheless, the macroeconomic and implementation risks associated with the program are substantial and more consistent with a Ba1 rating." Moody's believes that the Eurozone/IMF support package has sheltered the Greek government from the markets while it enacts the very ambitious fiscal austerity measures and structural economic reforms stipulated by the package. These have the potential to restore market confidence, depending on the effectiveness of the government's execution, and place the country on a more stable debt trajectory. The rating agency's base-case scenario envisions Greece implementing the policy changes it needs to stabilize its debt-to-GDP ratio at around 150% by 2013, and reduce its debt burden, defined as the interest payment/revenues ratio, gradually thereafter (expected at 20% in 2014). Should the economy respond positively to the competitiveness-enhancing structural reforms, debt stabilization could be achieved earlier. "There is considerable uncertainty surrounding the timing and impact of these measures on the country's economic growth, particularly in a less supportive global economic environment," said Ms. Carlson. "This uncertainty represents a risk that leads Moody's to believe that Greece's creditworthiness is now consistent with a Ba1 rating, a rating which incorporates a greater, albeit, low risk of default." Moody's outlook on Greece's ratings is stable, reflecting the substantial probability that the rating will not change over the next 12 to 18 months. The key factors that will influence the rating agency's view will be the performance of the Greek economy, especially that of GDP and tax revenues. Information on these developments will take some time to accumulate and may prove to be either credit positive or negative. Moody's previous rating action on Greece was implemented on April 22, 2010, when the rating agency downgraded Greece's rating to A3 and placed it under review for further downgrade. * Moody's Downgrades Issuer Rating on the City of Athens to 'Ba1' ----------------------------------------------------------------- Moody's Investors Service has downgraded the issuer rating of the city of Athens to Ba1 from A3; the outlook is negative. "The rating action follows Moody's downgrade of the sovereign ratings of Greece to Ba1 from A3 and reflects the uncertainties arising from current reforms on the city's finances" explained Thomas Amenta, Senior Vice President in Moody's Sub-sovereign group. "Moody's rating action on the city of Athens reflects the close operational and financial links between the city and the Greek government," said Mr. Amenta. Moody's recognizes that Athens has high reliance on central government transfers for its operations and capital investments, and that its local economic base is highly integrated with that of the national economy. "Greek municipalities, including the city of Athens, are unlikely to have enough financial flexibility to permit their credit quality to be stronger than that of the sovereign itself," said Mr. Amenta. The negative outlook reflects the current uncertainties arising from the implications of local government reform within the national plans to curb public spending as well as Moody's expectations that in the short term municipal revenues will likely be lower than anticipated due to a weakening economy. Moody's will continue to monitor closely the impact on the city's finances resulting from any difficulties in the implementation of national policies, including those relative to the newly-passed local government reform (Kallikrates reform), which provides for what may be significant changes in funding and responsibilities for Greek municipalities, all during a time of pronounced governmental austerity. "The definitive impacts of Kallikrates are difficult to assess given inevitable uncertainties regarding the timing and specific mechanisms of its implementation", said Mr. Amenta. The last rating action on the city of Athens was implemented on April 22, 2010, when Moody's downgraded the issuer rating of the city of Athens to A3 and placed the rating on review for further possible downgrade, following the downgrade of the sovereign ratings of Greece. As the capital city of Greece, Athens plays a key role as the financial, economic and political hub of the country. It accounts for almost 49% of national GDP and has a total population of 745,000. ============= I C E L A N D ============= * ICELAND: Restrictions Imposed to Eradicate Cross-Ownership ------------------------------------------------------------ Omar R. Valdimarsson at Bloomberg News reports that Iceland's Economy Minister Gylfi Magnusson said that the country's banks face "radical" changes as the government bars them from making loans to fund purchases of their own shares after cross-ownership worsened the island's economic crisis. According to Bloomberg, Mr. Magnusson said the restrictions were approved by parliament on June 12 in a package of amendments to the law on financial institutions that also "drastically" limits lending where equity in another bank is used as collateral. Bloomberg says the legislation gives the Financial Services Authority greater scope to impose fines and initiate criminal trials for banking malpractice. Mr. Magnusson, as cited by Bloomberg, said Iceland is leading other nations in revamping its bank industry after the failure of its three biggest lenders in October 2008 razed the island's economy. ============= I R E L A N D ============= LIMERICK INDEPENDENT: Directors Must Submit Statement of Affairs ---------------------------------------------------------------- Anne Sheridan at Limerick Leader reports that the High Court has ordered Declan and Susan Moylan, directors of Limerick Independent Newspapers Ltd., to submit a statement of affairs for the company, which was placed in compulsory liquidation last month. According to the report, the court heard this Monday that an application against the directors of the company was being considered. An order under Section 160 of the Companies Act, which would result in a disqualification from acting as a director or managing a company, may be brought against the directors of the company, the report states. The report recalls the directors were obliged to submit a statement of affairs within 21 days of the last court hearing in early May, but failed to do so to date. The report recalls Limerick Independent was wound up due to debts in excess of EUR350,000, while Lenmoy Media Publications, a recently established company, is now in charge of the running of the freesheet newspaper, which has been in existence for four years. The liquidation was handled by Brian McEnery, the report discloses. The report relates a court official told Ms. Justice Finlay Geoghegan there that is "very little money" placed in liquidation to date, and a bond was granted to cover the liquidator's costs, following the submission of an affidavit by Mr. McEnery. The case will be heard again on Monday, July 19, before the Examiner's Court, the report notes. ============= R O M A N I A ============= CASA DE INSOLVENTA: Files for Insolvency ---------------------------------------- Property Xpress reports that Casa de Insolventa Transilvania filed for insolvency on June 1. Casa de Insolventa Transilvania is a property developer based in Cluj-Napoca, Romania. =========== R U S S I A =========== ALROSA CO: Secures US$500 Mil. Loan From VTB to Refinance Debt -------------------------------------------------------------- Diamond Intelligence, citing Interfax, reports that VTB Capital has provided Alrosa with a two-year loan of US$500 million to refinance short-term loans taken out with Russian banks. The report relates Alrosa said at the beginning of this month that it planned to reduce its total debt down to US$3.5 billion, compared to a former planned target of US$3.7 billion, due to due to the company's "windfall profits" of RUR7.8 billion (US$245.6 million) for the first four months of this year. According to the report, Alrosa's net debts stood at about US$5 billion at the end of the first half of last year. The company's debts are derived from large-scale projects involved in a transition to underground mining, for which the company had raised considerable credit resources prior to the economic crisis, the report notes. About Alrosa ALROSA Company Ltd. -- http://eng.alrosa.ru/eng/-- is Russia's largest diamond company engaged in the exploration, mining, manufacture and sales of diamonds and one of the world's major rough diamond producers. ALROSA produces about 20% of the world's rough diamond output and accounts for almost 100% of all rough diamonds produced in Russia. * * * As reported by the Troubled Company Reporter-Europe on Feb. 19, 2010, Fitch Ratings has upgraded Russian diamond producer ALROSA Company Limited's Long-term foreign currency Issuer Default Rating to 'B+' from 'B', removed it from Rating Watch Negative and assigned a Stable Outlook. Fitch has also upgraded ALROSA's senior unsecured rating to 'B+' from 'B' and removed it from RWN. ALROSA's Short-term IDR is affirmed at 'B'. The Recovery Rating for the senior unsecured debt is 'RR4'. Fitch said the upgrade of ALROSA's ratings reflects improvements in its stand-alone credit profile due to reduced operational and financial risks in addition to the expected growth of the global raw diamond mining industry. ========= S P A I N ========= AYT DEUDA: S&P Affirms Rating on Class C Notes at 'BB' ------------------------------------------------------ Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its rating on AyT Deuda Subordinada I, Fondo de Titulizacion de Activos' class A notes. At the same time, S&P affirmed and removed from CreditWatch negative the ratings on the class B notes and affirmed the ratings on the class C notes. The rating actions follow a further deterioration of the credit quality of the underlying pool. The credit quality of the underlying obligors has decreased since S&P's last surveillance review in March. As a consequence, S&P believes the probability of default has increased for each subordinated debt bond backing the deal. S&P's analysis shows that the class A notes do not have a level of credit support commensurate with the current rating. S&P has therefore lowered its rating on these notes. S&P's analysis also indicates that the credit migration has had less of an effect on the class B and C notes. S&P has reflected this in its affirmation of the ratings on these notes. AyT Deuda Subordinada I issued EUR298 million of notes in November 2006, backed by nine subordinated debt bonds that Spanish savings banks issued. Ratings List AyT Deuda Subordinada I, Fondo de Titulizacion de Activos EUR298 Million Asset-Backed Floating-Rate Notes Rating Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A A- A/Watch Neg Rating Affirmed and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- B BBB- BBB-/Watch Neg Rating Affirmed Class Rating ----- ------ C BB CABLEUROPA SA: Fitch Gives Stable Outlook; Affirms 'BB-' Rating --------------------------------------------------------------- Fitch Ratings has revised Cableuropa S.A.'s Outlook to Stable from Negative, whilst affirming its Long- and Short-term Issuer Default Ratings at 'B' respectively. Fitch has simultaneously affirmed Cableuropa's senior secured facilities at 'BB-' with a Recovery Rating of 'RR2'. ONO Finance Plc's and ONO Finance II's 2014 senior notes are affirmed at 'CCC'/'RR6'. The revision of Cableuropa's Outlook to Stable reflects the improvement in near-term liquidity risk and Fitch's view that the company's financial metrics and forecast deleveraging profile remain commensurate with a Long-term IDR of 'B'. The rating action follows Cableuropa's 13 April 2010 announcement that it had finalised its amendment proposal aimed at adjusting the repayment profile of its senior secured facilities, and the finalization in May 2010 of all required documentation, which had the effect of terming out much of the amortizing A, B and I tranches into bullet repayments due in June 2013. This provides Cableuropa with significantly more cashflow headroom in the intervening years. Cableuropa's LT IDR of 'B' is supported by its second incumbent (fixed line) status in Spain and good business prospects, but the rating is also constrained by relatively high leverage which was 5.33x net debt/reported LTM EBITDA at end-Q110. The agency expects significant improvements in funds from free cash-flow generation from 2010 onwards, as the effects of lower capital expenditure and working capital outflows free up cash, and the final Auna installment of EUR71 million was paid in January 2010. The new senior secured facility terms will result in an increase in interest margins and the incurrence of one-off costs and fees. However, this is mitigated initially by the additional liquidity provided by a shareholder injection of EUR125 million, and also by the run-off of current EURIBOR hedging contracts at higher-than- current-market rates. Recent operating performance has been relatively resilient, with a recovery in residential average revenue per user levels and quarterly revenues stabilizing for the last three quarters, as residential revenue performance counterbalances continued weakness in the business segment. Trailing twelve-month recurring reported EBITDA was EUR722 million at Q110, a level which has been relatively stable over the last five quarters, with an EBITDA margin of 48.3%. Adjusted for capitalization of costs, the LTM recurring EBITDA was EUR660 million at Q110. Net leverage on a reported EBITDA basis was 5.33x at Q110 (or 5.84x stripping out capitalization of costs). LTM FCF at Q110 was a much improved EUR105 million (or EUR176 million before the Auna payment). Fitch's 28 May 2010 downgrade of Spain's sovereign rating to 'AA+' from 'AAA' does not directly impact Cableuropa's rating. However, Fitch does incorporate the agency's assumptions on economic growth prospects into its forecasts for Cableuropa, and considers that the more conservative outlook for Spanish GDP growth from 2011 may make revenue and EBITDA growth more difficult for the company to achieve. Fitch nonetheless believes that provided Cableuropa does not underperform its 2010 guidance, cashflow generation should be sufficiently improved going forward to support deleveraging and debt reduction even without relying on EBITDA growth. Underperformance to company guidance in 2010, or a further deterioration in revenues/EBITDA after 2010, could result in negative rating pressure. Positive rating momentum may be limited until the company has addressed its medium term refinancing requirements, although growth in revenues and EBITDA significantly beyond Fitch's cautious expectations could result in the Outlook being revised to Positive. CM BANCAJA: S&P Downgrades Rating on Class D Notes to 'B-' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on all classes of CM Bancaja 1, Fondo de Titulizacion de Activos's notes. The rating actions follow a full credit and cash flow analysis of the most recent transaction information and loan-level data that S&P has received for this transaction. S&P's credit review focused on various risks embedded in the pool backing this deal. As of May 2010, a total of 74 loans backed the deal. CM Bancaja 1 shows a high concentration in the real estate and construction sectors: 36.62% and 6.56%, respectively. Caja de Ahorros de Valencia, Castellon y Alicante originated the majority of the loans (25.90%) in the Valencia region, which is Bancaja's core business area. In particular, S&P believes there may be a concern about the borrower concentrations of the assets. The top 10 borrowers now account for 43.89% of the pool, compared with 14.8% at closing. The top borrower represents 11.27% of the current outstanding pool balance (equal to EUR14.5 million) versus 3.87% at closing. The continuous deterioration of the pool's credit quality exposes the deal to the risk that some of the top borrowers might default in the near feature. As a consequence, S&P believes the structure might not have sufficient credit support to maintain the current rating levels. The reserve fund is now at EUR13.77 million, which is lower than the largest borrower's loan balance. As the transaction generated some excess spread, but not enough to fully amortize the level of new net losses for the period, the cash reserve was drawn for almost EUR0.05 million during the March payment date. In December 2009, one loan defaulted for EUR1.5 million and the transaction recovered only EUR1.06 million on defaulted loans. The transaction benefits from high seasoning of the assets and a very low pool factor of only 23.79% of the closing balance. Nevertheless, two new loans defaulted since the last payment date, for a total amount of EUR2.4 million, which will be fully amortized by June interest payment date. S&P used the output of its credit analysis in its cash flow analysis. This showed that the credit support for all the notes in CM Bancaja 1 is no longer commensurate with their current ratings. Therefore, S&P has lowered its ratings on the notes. CM Bancaja 1 is an asset-backed securities transaction. Loans granted to Spanish corporates and originated by Bancaja, back this transaction. Ratings List Ratings Lowered and Removed From Creditwatch Negative CM Bancaja 1, Fondo de Titulizacion de Activos EUR556.2 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AA+ AAA/Watch Neg B BBB- A/Watch Neg C BB- BBB/Watch Neg D B- BB-/Watch Neg * SPAIN: Must Shore Up Savings Banks without EU's Help ------------------------------------------------------ Tony Czuczka at Bloomberg News reports that the German Finance Ministry said Spain needs to shore up its savings banks on its own and doesn't require European Union aid to tackle its public debt. Chancellor Angela Merkel's government "currently sees no need for action" to help Spain from the EU's EUR750-billion (US$918 billion) package, Bloomberg quoted Finance Ministry spokesman Michael Offer as saying. "It's up to Spain to find solutions for its banking sector as required." According to Bloomberg, European Commission spokesman Amadeu Altafaj said in Brussels Monday that no financial aid plan is being prepared for Spain. Bloomberg notes he called media reports that a plan is being prepared "mere speculation." Bloomberg says Greece's sovereign debt crisis has focused attention on Spain's finances and the cost of bolstering Spanish savings banks, which are stuck with bad loans after recession and a property-market crash. ============= U K R A I N E ============= YASYNOVATSKY MACHINERY: Court Launches Bankruptcy Proceedings ------------------------------------------------------------- BG Capital, citing Interfax, reports that a Donetsk Economic Court launched bankruptcy proceedings against Yasynovatsky Machinery. The report relates the court imposed a moratorium on satisfying creditor claims. The submission deadline for creditor claims is July 11, the report discloses. Yasynovatsky Machinery is based in Ukraine. =========================== U N I T E D K I N G D O M =========================== FIORENTE FUNDING: Moody's Downgrades Ratings on Notes to 'C' ------------------------------------------------------------ Moody's Investors Service announced these rating actions on notes issued by Fiorente Funding Limited, a cash flow CDO backed by a portfolio of structured finance securities. -- US$63.75M Class A Secured Floating Rate Credit-Linked Notes-1 Notes, Downgraded to C; previously on Jun 2, 2008 Downgraded to Ca -- US$34M Class B Secured Deferrable Floating Rate Credit-Linked Notes Notes, Downgraded to C; previously on Jun 2, 2008 Downgraded to Ca -- US$14.45M Class C Secured Deferrable Floating Rate Credit- Linked Notes-1 Notes, Downgraded to C; previously on Mar 19, 2008 Downgraded to Ca -- US$3.075M Class D1 Secured Deferrable Floating Rate Credit- Linked Notes-1 Notes, Downgraded to C; previously on Mar 19, 2008 Downgraded to Ca -- US$5M Class D2 Secured Deferrable Fixed Rate Credit-Linked Notes due 2056 Notes, Downgraded to C; previously on Mar 19, 2008 Downgraded to Ca -- US$10M M1 Combination Notes Notes, Downgraded to C; previously on Mar 19, 2008 Downgraded to Ca The transaction experienced an event of default on February 28, 2008, and the trustee was directed to liquidate the collateral as a post-event-of-default remedy. Moody's was notified by the trustee that a final distribution of liquidation proceeds has taken place on April 15, 2010. As a result of the liquidation, all classes of notes suffered a 100% loss. The rating actions taken reflect the final liquidation distribution and changes in the severity of loss associated with the downgraded notes. GH TAYBERRY: In Administration; 63 Jobs Affected ------------------------------------------------ Matthew Appleby at HortWeek.com reports that GH Tayberry has gone into administration, resulting in the loss of 63 jobs. According to the report, the firm had cut costs and sought to export this year but HSBC lost faith and Adrian Allen and Graham Bushby at Baker Tilly Restructuring & Recovery were appointed joint administrators for the firm. "Tayberry is one of many UK businesses operating in the tough retail sector which has suffered from changing customer demand and working capital issues, compounded by reduced credit from UK and worldwide suppliers," the report quoted Mr. Allen as saying. "On appointment, we have unfortunately made a number of redundancies but will continue to trade the company on a limited basis." "We're trying to sell the business and assets. There has been quite a bit of interest but it is too early to say what is going to happen." GH Tayberry is a garden center clothing supper based in Lincolnshire. LOGAN CDO: Moody's Cuts Rating on Super Senior Swap to 'Caa3' ------------------------------------------------------------- Moody's Investors Service announced these rating actions on notes issued by Logan CDO II and the corresponding super senior swap. The notes and the swap affected by the rating actions are: Issuer: Logan CDO II Limited -- US$1350M Super Senior Swap, Downgraded to Caa3; previously on Apr 23, 2009 Downgraded to Caa2 -- US$40M Class A-1 Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Apr 23, 2009 Downgraded to C -- US$49M Class A-2 Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Jun 18, 2008 Downgraded to C -- US$22M Class B Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Jun 18, 2008 Downgraded to C -- US$18.5M Class C Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Apr 14, 2008 Downgraded to C -- US$12M Class D Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Feb 25, 2008 Downgraded to C -- US$5M Class E Floating Rate Credit Linked Secured Notes, Withdrawn; previously on Feb 25, 2008 Downgraded to C This transaction is a managed synthetic CDO of ABS containing 100% US SF assets. At present, the portfolio is mainly composed of 61% CLOs, 25% RMBS, and 11% CDOs of RMBS. Moody's has withdrawn the ratings of all classes of notes from A1 through to Class E in response to the cancellation of the notes on October 9, 2009. The cancellation of the notes were prompted by actual losses, which reduced the notional amount of each class to zero. The super senior swap currently remains outstanding with realized losses to the tranche of approximately 2.67%. The rating downgrade action reflects a significant deterioration in the credit quality of the underlying portfolio, with mounting losses and increasing number of credit events and Ca/C rated names. Since the last rating action, 73% of the pool have been subject to downgrade rating action(s), where 24% of the pool suffered downgrades of more than 3 notches. A significant number of downgrades were attributed to high yield CLOs at 52% followed by RMBS assets at 11% and 4.3% for CDOs of RMBS. Since the last rating action, there have been 7 new credit events, of which 5 have settled amounting to realized losses of USD9.6M or 0.64% of the pool. This brings the total number of credit events since closing to 27, of which 24 have suffered a 100% full loss and 3 remain in the pool pending settlement. Moody's also note that the Ca/C bucket is a staggering 30% and assuming 100% severity on each of these assets would give an expected recovery of around 70% for the super senior tranche. This is somewhat supported by Moody's modeled result where the expected loss is 37% giving an expected recovery of 63%. 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. MAINSAIL CDO: Moody's Withdraws 'C' Ratings on Notes ---------------------------------------------------- Moody's Investors Service announced these rating actions on notes issued by Mainsail CDO, a synthetic CDO backed by a portfolio of structured finance securities. -- US$90M Class A1 Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Apr 23, 2009 Downgraded to C -- US$120M Class A2 Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Jul 11, 2008 Downgraded to C -- US$30.5M Class B Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Jul 11, 2008 Downgraded to C -- US$10M Class C Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Apr 8, 2008 Downgraded to C -- US$26M Class D Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Apr 8, 2008 Downgraded to C -- US$6.75M Class E Secured Floating Rate Credit-Linked Notes Notes, Withdrawn; previously on Feb 19, 2008 Downgraded to C Moody's also took this rating action on the junior super senior swap referencing the Mainsail portfolio entered into by Royal Bank of Scotland. -- US$300M Mainsail CDO I Ltd -- jr. super senior tranche #1 Notes, Downgraded to C; previously on Apr 23, 2009 Downgraded to Ca The notes were early redeemed on April 26, 2010, due to a termination of the underlying CDS transaction which was caused by the Issuer failing to pay the physical settlement amount upon a credit event. Moody's was notified by the trustee that a final distribution of available proceeds has taken place and all classes of notes suffered a 100% loss. Moody's Withdrawal Policy can be found on moodys.com in the Ratings Process subdirectory, in the Ratings Definitions subdirectory. The junior super senior swap is not affected by the termination of the funded notes. The rating downgrade action is a result of total amount of C rated assets in the underlying portfolio exceeding the outstanding balance of the swap. PILKINGTON'S TILES: In Administration; 380 Jobs at Risk ------------------------------------------------------- Michael Fahy at Crain's Manchester Business reports that Pilkington's Tiles has been placed into administration, putting 380 jobs at risk. The report relates Paul Flint and Brian Green from the Manchester office of KPMG Restructuring as joint administrators to Pilkington's Group plc and to subsidiaries Pilkington's Tiles Ltd., Pilkington's Tiles Ireland Ltd. and Quiligotti Access Flooring Ltd. According to the report, Mr. Flint said the firm had "suffered intense cash flow pressures as a result of recent adverse trading conditions". He said KPMG intended to continue trading the business while it seeks a buyer, the report notes. In the year to March 31, 2009 the firm posted a pre-tax loss of GBP2.9 million as a result of declining sales in its ceramics division, the report discloses. The firm said that sales of ceramic tiles, which is its core product, dropped by 3.8% during the year to GBP31.1 million. RMAC 2004-NSP2: Moody's Cuts Rating on Class A3 Notes to 'Ba1' -------------------------------------------------------------- Moody's Investors Service has taken action on five classes of notes issued by RMAC 2004-NS1 plc and RMAC 2004-NSP2 plc. The five affected tranches were all on review due to their exposure to Ambac Financial Services LLC and Ambac Assurance Corporation (Caa2 on review for possible upgrade) acting as cross-currency swap provider and swap guarantor respectively. With the rating actions, which conclude the review, Moody's has: -- upgraded the A3 notes in RMAC 2004-NS1 due to the expiry of the cross-currency swaps and the deleveraging of the structure; -- upgraded the A2 notes and downgraded the A3 notes in RMAC 2004-NSP2, taking into account the outstanding cross-currency swaps and the time subordination of the principal redemption of these two classes. Transaction Overview RMAC 2004-NS1 closed in March 2004 and the current mortgage pool factor is approximately 10%. The assets supporting the notes are first-lien mortgage loans secured by residential properties located in England, Wales and Scotland. The weighted average LTV at closing was approximately 72.22% while the current weighted average LTV is approximately 69.88%. The overcollateralization, which has reached its floor, equals GBP 3.75 million, corresponding to 5.31% of the outstanding note balance. RMAC 2004-NSP2 closed in June 2004 and the current mortgage pool factor is approximately 13%. The assets supporting the notes are first-lien mortgage loans secured by residential properties located in England, Wales, Scotland and Northern Ireland. The weighted average LTV at closing was approximately 74.45% while the current weighted average LTV is approximately 74.08%. The overcollateralization, which has reached its floor, equals to GBP 7.50 million, corresponding to 4.10% of the outstanding note balance. Transaction Review The rating actions incorporate the potential risks deriving from Ambac Financial Services LLC and Ambac Assurance Corporation acting as cross currency swap provider and swap guarantor respectively. In RMAC 2004-NS1, in the interest payment date of March 2010 the A2 notes, which included US dollar-denominated and euro- denominated notes, have been completely repaid. Hence, the transaction is no longer exposed to the risks deriving from the credit quality of the cross-currency swap provider and guarantor. On the basis of the performance data to date, the portfolio is still performing in line with Moody's expectations. Hence, based on the increased levels of credit enhancement available in the structure and the expiry of the cross-currency swaps, Moody's has upgraded the Class A3 notes to A3. In RMAC 2004-NSP2, on the basis of the performance data to date, the portfolio is still performing in line with expectations. However, the transaction is still linked to the credit quality of the cross-currency swap provider and guarantor, as the outstanding A2b and A2c notes are US dollar and euro denominated respectively. On the 13th of April 2009 the downgrade of Ambac Assurance Corporation to Ba3 had already resulted in certain rating related provisions being triggered under the relevant swaps. In particular each swap provides that, upon the downgrade of Ambac Assurance Corporation below Baa2, the swap provider has the obligation to use reasonable effort to transfer its rights and obligations under the swap to a suitable rated third party. Moody's is aware that the swap provider has not yet been able to find a replacement counterparty but Moody's understand from The Bank of New York Mellon, which acts as trustee in the transaction, that in the meantime posting of collateral has taken place. Furthermore, as noted in the press release dated 13th of February 2009, the swap documents for these transactions are not fully compliant with Moody's current criteria for de-linking swap counterparty risks. For example, although Ambac Assurance Corporation guarantees the payment obligations of the swap provider, in Moody's view it does not, in all circumstances, guarantee performance obligations such as the obligation to post collateral. In view of all this Moody's considers that, upon default of Ambac Assurance Corporation as swap guarantor, there is a material likelihood that the respective issuers would lose the benefit of the swaps without necessarily holding sufficient collateral to fully mitigate any resulting losses. In order to address this risk, Moody's has assessed the potential exposure of the transaction to foreign exchange volatility in case of default of the cross-currency swap provider and guarantor, assuming that no swap replacement will be found. In particular, Moody's has taken into account that the current foreign exchange rates are significantly less favorable for the Issuer than those entered into at closing (approximately 1.829 for the GBP/USD and 1.514 for the GBP/EUR exchange rates respectively). As part of its analysis, Moody's has applied stressed foreign exchange assumptions for different rating levels to incorporate the future volatility this Issuer could potentially be exposed to. For example, for a single A-scenario Moody's assumes that the pound sterling exchange rate will decrease from the current levels and will reach the parity with the euro in approximately 6 months time. Taking into account the current capital structure and the stressed foreign exchange assumptions mentioned above, Moody's has factored in the potential risk of exposure to foreign exchange volatility, which has lead to the downgrade of the rating of the A3 notes from Baa1 to Ba1. At the same time, Moody's has taken into consideration that, so long as the cash in the transaction is allocated according to the pre-enforcement waterfall, the principal of the A2 class will be paid in priority to the principal of the A3 notes. This provision, which makes the A2 notes significantly more protected then the A3 notes against foreign exchange volatility, and the deleveraging in the structure have driven the upgrade of the rating on the A2 notes. List of Affected Notes The classes of notes affected by the rating actions are detailed below. RMAC 2004-NS1: -- Class A3, upgraded to A3; previously on 31 July 2009 Baa1 and placed under review for possible downgrade. RMAC 2004-NSP2: -- Class A2a, upgraded to A2; previously on 31 July 2009 Baa1 and placed under review for possible downgrade; -- Class A2b, upgraded to A2; previously on 31 July 2009 Baa1 and placed under review for possible downgrade; -- Class A2c, upgraded to A2; previously on 31 July 2009 Baa1 and placed under review for possible downgrade; -- Class A3, downgraded to Ba1; previously on 31 July 2009 Baa1 and placed under review for possible downgrade. Moody's has upgraded the Class A3 notes in RMAC 2004-NS1 and the Class A2 notes in RMAC 2004-NSP2 due to increased levels of credit enhancement available in the structure, and in RMAC 2004-NS1 also due to the expiry of the cross-currency swaps. In Moody's view, the increased levels of subordination more than offset the negative outlook for the overall UK non-conforming market. The sector outlook reflects these expectations of key macro-economic indicators: GDP to grow by 1.2% in 2010 and by 2.2% in 2011, unemployment to increase to approximately 8% by 2010 from 7.6% in 2009, house prices to decrease by around 20% from their peak in 2007 to a trough in 2011 and personal insolvencies likely to remain elevated. For more detailed information please refer to Moody's Economy.com. Additionally, Moody's tested the sensitivity of the revised ratings to various stress scenarios including for example the amount of future losses, the MILAN Aaa CE and different distributions of losses over time. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transactions. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's will continue to monitor closely the transactions. SIMPLY COFFEE: Enters Administration; 13 Jobs Affected ------------------------------------------------------ Rob Moore at Business-Sale reports that Simply Coffee Ltd. has entered administration, resulting in the loss of 13 of the 25 jobs at the company. According to the report, the company racked up GBP2 million of debt to fund rapid expansion. The report relates David Kirk, of insolvency practitioners Kirk Hills, has been appointed its administrator and will continue to trade the company while buyers are sought. Simply Coffee Ltd. is an Exeter-based hot drinks business. The company's technicians service beverage machines at more than 550 sites throughout the UK, mainly convenience stores and petrol stations, according to Business-Sale. TALARDY HOTEL: In Administration; Buyer Being Sought ---------------------------------------------------- Martin Williams at Daily Post reports that the Talardy Hotel has been put into administration. According to the report, the hotel has struggled in recent years, with business people in the area blaming roadworks and improvements to fencing on the neighboring A55 for a decline in trade. The report relates Andreas Klohe, who represents administrators Grant Thornton, said it could be six months before a buyer is found but it would be "business as usual". The Talardy Hotel employs 30 people and includes three restaurants -- the Cellars, Chestnut Tree and Oodles -- and conference facilities. The 16-bedroomed hotel is lcoated in St. Asaph in North Walles, according to Daily Post. TRAVELODGE HOTELS: DIC Injected GBP20.1 Mil. to Relax Covenants --------------------------------------------------------------- Dubai International Capital made a cash injection of GBP20.1 million into Travelodge last year in return for lenders to relax their covenants, Pan Kwan Yuk at The Financial Times reports, citing accounts filed by the budget hotel operator. According to the FT, DIC, which acquired Travelodge for GBP675 million nearly four years ago, agreed to recapitalize the business as part of a wider deal with the hotelier's banks to amend its covenants. "In particular, a capital expenditure limit was materially raised to enable the company to accelerate its development program over the next five years," the latest Companies House accounts filed by Travelodge revealed, according to the FT. The FT notes that aside from the capital expenditure limit, it is not clear what other covenants were amended as part of DIC's agreement with its lenders. Travelodge Hotels Ltd. -- http://www.travelodge.co.uk/-- offers travelers lodging without lavish prices with nearly 400 budget hotels (some 26,000 rooms) throughout the UK, Ireland, and Spain. Travelodge Hotels' facilities are located along travel routes and in urban areas. A majority of reservations are made via the company's Web site. Room rates start at GBP19 (about US$32) a night. The company was founded in 1985 as the first budget hotel brand to launch in the UK. Dubai International Capital, a unit of Dubai Holding owns Travelodge Hotels. VANTIS PLC: Shares Suspended; Chief Executive Steps Down -------------------------------------------------------- David Blackwell at The Financial Times reports that shares in Vantis, the Aim-quoted company that has been acting as liquidator to Stanford International Bank, have been suspended pending clarification of its financial position. The FT relates the move follows news last week that the High Court of Antigua has ruled that the Vantis liquidators should be removed from office and alternative liquidators appointed to SIB. According to the FT, firm, which has a market capitalization of GBP6.4 million at the suspension price of 10 1/4p a share, said it could no longer be certain that it would continue to have sufficient funding to continue trading as a going concern. The FT says the company is continuing talks with its debt providers. It is also in talks about the disposal of some of its assets, and with potential new investors, the FT notes. Paul Jackson, the founding chief executive who has a stake of almost 15%, and Nigel Hamilton-Smith, resigned from the board over the weekend, the FT notes. Vantis plc -- http://www.vantisplc.com/-- is a UK-based accounting, tax, business recovery and advisory group focused on servicing SMEs and owner-managed businesses, as well as private individuals. =============== X X X X X X X X =============== * EUROPE: Central Banks Can't Rescue Insolvent Governments ---------------------------------------------------------- Christian Vits and John Fraher at Bloomberg News report that European Central Bank Executive Board member Lorenzo Bini Smaghi said central banks can't be expected to save insolvent governments. "While central banks will be called upon to support market functioning in liquidity crises when the integrity of the transmission mechanism is threatened, they cannot be asked to rescue insolvent issuers -- whether private or public institutions," Bloomberg quoted Mr. Bini Smaghi as saying in a speech in New York Monday. "In line with this principle," the ECB's government bond purchase program "is meant to repair the integrity of the transmission mechanism, not to finance public debt." Bloomberg notes Mr. Bini Smaghi said central banks do need to critique their own actions and "try to work out what the implications of their actions will be for financial markets in the future." ********* 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 * * *