/raid1/www/Hosts/bankrupt/TCREUR_Public/100617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Thursday, June 17, 2010, Vol. 11, No. 118
Headlines
F R A N C E
GENERAL MOTORS: May Reacquire French Powertrain Plant
LEE COOPER: French Unit May Face Liquidation as Bidder Pulls Out
G E R M A N Y
COMMERZBANK AG: Expected to Post Large Profit in Second Quarter
VAC FINANZIERUNG: Moody's Raises Corporate Family Rating to 'Caa1'
G R E E C E
AGRICULTURAL BANK: Moody's Cuts Rating to Ba2/Not-Prime
ALPHA BANK: Moody's Cuts Rating to Ba1/Not-Prime
ALPHA BANK: Moody's Cuts Covered Bond Rating to Ba1
EFG EUROBANK: Moody's Cuts Rating to Ba1/Not-Prime
EFG EUROBANK: Moody's Cuts Covered Bond Rating to Ba1
NATIONAL BANK: Moody's Cuts Rating to Ba1/Not-Prime
NATIONAL BANK: Moody's Cuts Covered Bond Rating to Ba1
WIND HELLAS: April & May Sales Fall; In Talks with Creditors
I R E L A N D
ORTELIUS FINANCE: S&P Lowers Rating on US$10 Mil. Notes to 'CC'
QUINN INSURANCE: Won't Need to Invoke Involuntary Redundancies
I T A L Y
IT HOLDING: July 6 Deadline Set for Gianfranco Ferre Bids
N E T H E R L A N D S
SGA SOCIETE: S&P Withdraws 'CCC' Rating on Eden Portfolio
R U S S I A
CENTER-INVEST BANK: Moody's Shifts Outlook on B1 Rating to Stable
RUSHYDRO JSC: Moody's Downgrades Issuer Rating to 'Ba1'
S W E D E N
SAAB AUTOMOBILE: To Repay Creditors Today Under Debt Writedown
T U R K E Y
PETKIM PETROKIMYA: Fitch Affirms 'BB-' Issuer Default Rating
U K R A I N E
ZEMELNYI BANK: Needs UAH500-Mil. to Stabilize Finances
U N I T E D K I N G D O M
BAGGELEY & JENKINS: In Administration; Up to 30 Jobs Affected
BARCUD DERWEN: In Administration; 35 Jobs Affected
BP PLC: Agrees to Earmark US$20 Billion for Oil Spill Claims
BP PLC: Brazil Reviews Firm's Purchase of Devon Energy Assets
KERLING PLC: S&P Raises Corporate Credit Rating to 'B'
LEHMAN BROTHERS: Administrators Unveil Claims Determination Plan
R AND H: Liquidation Won't Affect Autumn 10 Deliveries
MCCORMICK MACNAUGHTON: In Administration; 56 Jobs at Risk
PARITY TRAINING: Goes Into Administration
REFUGEE AND MIGRANT: Cash-Flow Problem Prompts Administration
ST. MARGARET'S: Parents Set Two-Week Deadline to Rescue School
WHERRY HOTEL: Bought Out of Administration
* Refinancing Risk A Threat to Credit Quality in Europe, Says S&P
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
*********
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F R A N C E
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GENERAL MOTORS: May Reacquire French Powertrain Plant
-----------------------------------------------------
Laurence Frost at Bloomberg News reports that General Motors Co.
said it may reacquire a French powertrain plant that it disposed
of as part of its bankruptcy proceedings last year.
"We are considering re-acquiring the plant," Bloomberg quoted GM
Europe spokesman Stefan Weinmann as saying Monday. "We are just
starting the discussions now."
According to Bloomberg, the factory, near the eastern city of
Strasbourg, was separated from GM as part of the Detroit-based
carmaker's Chapter 11 bankruptcy proceedings last year. Mr.
Weinmann, as cited by Bloomberg, said a final decision on the
plant's future may be made by the end of July.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 207,000 people in every major region of
the world and does business in some 140 countries. GM and its
strategic partners produce cars and trucks in 34 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEE COOPER: French Unit May Face Liquidation as Bidder Pulls Out
----------------------------------------------------------------
Stuart Todd at Just-Style reports that the French unit of jeans
wear group Lee Cooper may be put into liquidation later this week
after a potential bidder pulled out.
According to the report, French clothing retailer Verywear, the
sole candidate to take over the company, was withdrawing its bid.
The report relates Lee Cooper France's sales have declined by
close to 30% over the past five years and the company has
accumulated losses estimated at EUR22 million (US$27 million).
The unit was placed under administration in March, having been
declared insolvent, the report recalls.
=============
G E R M A N Y
=============
COMMERZBANK AG: Expected to Post Large Profit in Second Quarter
---------------------------------------------------------------
Julie Cruz at Bloomberg News, citing Platow Brief, reports that
Commerzbank AG will probably post a "sizeable" profit in the
second quarter though the earnings are unlikely to match the level
of the first three months.
According to Bloomberg, the newsletter said the bank plans to make
a full interest payment on capital provided by the German bank-
rescue fund this year.
Capital Measures
On May 21, 2010, the Troubled Company Reporter-Europe, citing Dow
Jones Newswires, reported that Commerzbank said its shareholders
had approved a proposal that allows it to raise additional capital
more flexibly and sets the bank up to begin repaying its bailout
from the German government. Dow Jones said the approval gives
Commerzbank authorization to raise capital of up to a nominal
value of EUR1.535 billion, or around 590 million shares. Dow
Jones said the measures, approved by shareholders at Commerzbank's
annual general meeting, further authorize the bank to issue
conditional capital such as convertible bonds with a nominal value
of up to EUR4 billion.
Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
http://www.commerzbank.com/-- is the parent company of a
financial services group active around the world. The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe ,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.
* * *
As reported by the Troubled Company Reporter-Europe on May 6,
2010, Fitch Ratings affirmed Germany-based Commerzbank AG's Long-
term Issuer Default Rating at 'A+' with a Stable Outlook and
Short-term IDR at 'F1+'. At the same time, the Individual rating
was upgraded to 'D' from 'D/E'.
VAC FINANZIERUNG: Moody's Raises Corporate Family Rating to 'Caa1'
------------------------------------------------------------------
Moody's Investors Service raised the Corporate Family Rating and
Probability of Default Rating of VAC Finanzierung GmbH to Caa1
from Ca. At the same time the senior secured notes due 2016 have
been upgraded to Caa2 from Ca. The outlook has been changed to
positive from negative.
The rating action was prompted by (i) the implementation of a
financial restructuring resulting in a considerably lower debt
load and reduced interest payments, (ii) the amendment of the
senior bank debt which resulted in an adequate headroom under
financial covenants going forward and (iii) recently improving
operating performance on the back of increased demand for magnetic
products which together with benefits from the financial
restructuring should enable VAC to clearly improve credit metrics
going forward.
Although point in time metrics are only in line with the Caa1
rating category, the positive outlook reflects Moody's expectation
that VAC will sustain recent performance improvements shown in the
first months of 2010 through improved order intake and continued
tight cost management. The ratings could therefore be upgraded
over the next 6 to 12 months should VAC manage to improve credit
metrics in line with the requirements for the single B rating
category as indicated by Debt/EBITDA moving towards 6 times in
2010 and below thereafter, EBITA-margins increasing above the mid
single digits and a return to positive free cash flow generation.
The positive outlook also incorporates Moody's expectation that
VAC will maintain adequate liquidity headroom, including
flexibility under its revised covenants.
The ratings could come under downwards pressure should VAC fail to
maintain adequate liquidity or if expected break-even to positive
free cash flow generation is negatively impacted by a
deterioration in operating margins resulting in leverage not
improving towards 6 times over the coming quarters. Also, any
material expansion activity through largely debt financed
acquisitions would also result in downward pressure on the rating.
In H2 2009, One Equity Partners, the sole shareholder of VAC,
bought back about EUR80 million of face value of the senior
secured notes at distressed pricing levels. This buyback was
determined as a distressed exchange and a limited default by
Moody's in October 2009 and resulted in a downgrade of VAC's
ratings to Ca. These notes have been swapped into equity-like
instruments recently, reducing the outstanding amount of these
notes to EUR55 million. In addition, a EUR68 million shareholder
loan was also swapped into an equity-like instrument.
Furthermore, the financial restructuring also encompassed
amendments to VAC's credit agreement that (among other things)
reduced the amount of the formally EUR40 million revolving credit
facility to EUR30 million, set new financial covenants, waived all
existing defaults, and increased the interest rate.
The upgrade of the corporate family rating reflects the material
reduction in financial leverage following the aforementioned
restructuring of VAC's debt obligations. Following the exchange
of senior secured notes into equity, Moody's adjusted debt reduced
by about 23% on a pro forma 2009 basis. The upgrade also reflects
the company's improved liquidity profile as cash interest payments
will be clearly reduced going forward and as the amendment
includes increased headroom under financial covenants. The
liquidity profile is characterized by EUR17 million on-balance
sheet cash as of March 2010 and full availability under the EUR30
million revolving credit facility, which should be sufficient
provided that the company will continue to generate at least
break-even free cash flows which requires a material improvement
in operating cash flow generation and an only modest increase in
working capital requirements, which is a challenge that needs to
managed in the short term. Furthermore, the upgrade also
considers the more benign business conditions indicated by strong
order intake and a return to positive operating cash flow
generation (before working capital movements) in Q1 2010, which
Moody's assume to be continued over the coming quarters.
Notwithstanding these positives, the rating also considers that
leverage is still high even after the financial restructuring.
Given expectations for limited near-term positive free cash flow
generation, it is critical that the company expands EBITDA levels
to improve its credit metrics further, which might be challenging
as the economic environment remains fragile and as input costs
have started to rise again. Upcoming labor negotiations in H2
2010 will also be critical to support further margin improvements
as the majority of personnel expenses is still related to the
group's German operations.
Upgrades:
Issuer: VAC Finanzierung GmbH
-- Probability of Default Rating, Upgraded to Caa1 from Ca
-- Corporate Family Rating, Upgraded to Caa1 from Ca
-- Senior Secured Regular Bond/Debenture, Upgraded to Caa2 from
Ca
Outlook Actions:
Issuer: VAC Finanzierung GmbH
-- Outlook, Changed To Positive From Negative
The last rating action was implemented on 7 October 2009, when
Moody's assigned a Ca/LD probability of default rating to VAC
following a distressed exchange transaction, a deemed default
event under Moody's policies.
Headquartered in Hanau, Germany, Vacuumschmelze GmbH & Co KG has a
solid and well established market position in the design and
manufacturing of magnetic products. In 2009, the company
generated revenues of EUR234 million.
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G R E E C E
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AGRICULTURAL BANK: Moody's Cuts Rating to Ba2/Not-Prime
-------------------------------------------------------
Moody's Investors Service has taken rating actions on the debt and
deposit ratings of nine Greek banks reflecting the rating agency's
downgrade of the Greek government's sovereign debt rating to Ba1
from A3, with a stable outlook. The banks' stand-alone financial
strength ratings are not affected by the rating actions, neither
are the banks' hybrid debt ratings as those are linked to the
banks' stand-alone ratings.
The rating actions on the affected banks are: National Bank of
Greece (downgraded to Ba1/Not-Prime from Baa2/Prime-2), EFG
Eurobank Ergasias SA (downgraded to Ba1/Not-Prime from Baa3/Prime-
3), Alpha Bank AE (downgraded to Ba1/Not-Prime from Baa3/Prime-3),
Agricultural Bank of Greece (downgraded to Ba2/Not-Prime from
Baa3/Prime-3), Emporiki Bank of Greece SA (downgraded to
Baa3/Prime-3 from Baa2/Prime-2), and General Bank of Greece SA
(downgraded to Baa3/Prime-3 from Baa2/Prime-2). Moody's has also
confirmed the long-term debt and deposit ratings of Piraeus Bank
SA at Ba1 and Attica Bank SA at Ba2. In addition, Moody's has
placed the Baa2 long-term deposit rating of Marfin Egnatia Bank SA
(MEB) on review with direction uncertain, while the short-term
Prime-2 rating has been placed on review for possible downgrade.
Please see below for a full list of the affected ratings.
The downgrade of the Greek government's rating has prompted
Moody's to lower its assessment of the capacity of the Greek
government to support its banking system, consistent with the
change in the sovereign debt rating. Moody's utilizes a 'systemic
support indicator' as an anchor to measure a country's capacity to
support its banking system in case of need, and it is used by
Moody's to assign the supported deposit and debt ratings of banks.
Greece's systemic support indicator remains positioned one notch
above the national government's debt rating. The rationale for
maintaining the country's support indicator above the government
rating -- despite the government's weakened fiscal position --
incorporates the Greek and European authorities' commitment to
support the Greek banking system through a range of (financial and
non-financial) tools that can be deployed to assist banks.
Moody's notes that the rating actions are not driven by a change
in the agency's view on the Greek banks' intrinsic financial
strengths, which are captured in the banks' stand-alone ratings,
the BFSRs. Nor do they reflect a change in the rating agency's
assumptions regarding the likelihood of systemic support for each
bank. The rating agency added, however, that concerns about
liquidity pressures and asset quality deterioration had led to
some downward adjustments in the banks' stand-alone ratings
earlier this year.
Foreign-owned subsidiaries
Despite the downward adjustment in the country's systemic support
indicator, the deposit and debt ratings of Emporiki Bank of Greece
SA and General Bank of Greece SA continue to receive significant
uplift from Moody's assessment of a very high probability of
support from their French parents (Credit Agricole SA (Aa1/B-) and
Societe Generale (Aa2/C+), respectively) if needed. This explains
their above-average ratings within the Greek banking system,
despite having stand-alone credit attributes that are weaker than
some of the largest Greek banks.
Similarly, the deposit and debt ratings of MEB currently benefit
from parental support offered by Marfin Popular Bank (A3/C-), a
Cyprus-based institution. The decision to place MEB's long-term
deposit ratings on review with direction uncertain is explained by
two factors. Firstly, the ratings of the parent bank are now
under review for possible downgrade and a lowering of those
ratings could negatively impact MEB's long-term ratings.
Secondly, plans are under way for MEB to lose its subsidiary
status and be absorbed by its Cyprus-based parent. Under this
merger scenario, MEB's obligations would become obligations of
Marfin Popular Bank, and MEB's long-term ratings would migrate
upward, towards the higher rating of the parent. The impact of
these factors on the short-term rating of MEB differs:
accordingly, the short-term deposit rating of the bank was placed
under review, but for a possible downgrade only.
The specific rating changes implemented are:
National Bank of Greece SA and NBG Finance plc:
-- Deposit ratings downgraded to Ba1/Not-Prime from Baa2/Prime-2
-- Senior unsecured debt rating downgraded to Ba1 from Baa2
-- Subordinated debt ratings downgraded to Ba2 from Baa3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
EFG Eurobank Ergasias SA, EFG Hellas plc, and EFG Hellas (Cayman
Islands) Limited:
-- Deposit ratings and senior unsecured debt ratings downgraded
to Ba1/Not-Prime from Baa3/Prime-3
-- Commercial paper downgraded to Not-Prime from Prime-3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
-- Backed (government-guaranteed) senior unsecured MTN
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
Alpha Bank AE, Alpha Credit Group plc and Alpha Group Jersey
Limited:
-- Deposit and senior unsecured debt ratings downgraded to
Ba1/Not-Prime from Baa3/Prime-3
-- Commercial Paper downgraded to Not-Prime from Prime-3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
All the above ratings carry a stable outlook.
Piraeus Bank SA and Piraeus Group Finance plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba1
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings confirmed at Ba2
All the above ratings carry a negative outlook, with the exception
of the backed (government-guaranteed) senior unsecured ratings
that carry a stable outlook.
Agricultural Bank of Greece SA and ABG Finance International plc:
-- Deposit and senior unsecured debt ratings downgraded to
Ba2/Not-Prime from Baa3/Prime-3
-- Subordinated debt ratings downgraded to Ba3 from Ba1
All the above ratings carry a stable outlook.
Emporiki Bank of Greece SA and Emporiki Group Finance plc:
-- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from Baa2/Prime-2
-- Subordinated debt rating downgraded to Ba1 from Baa3
All the above ratings carry a stable outlook.
Marfin Egnatia Bank SA and Egnatia Finance plc:
-- Deposit and senior unsecured debt of Baa2 ratings placed
under review with direction uncertain
-- Subordinated debt ratings of Baa3 placed under review with
direction uncertain
-- Short-term Prime-2 ratings placed under review for possible
downgrade
Attica Bank SA and Attica Funds plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba2
-- Subordinated debt rating confirmed at Ba3
All the above ratings carry a negative outlook.
General Bank of Greece SA:
-- Deposit ratings downgraded to Baa3/Prime-3 from Baa2/ Prime-
2; the ratings carry a stable outlook
The previous rating actions on the above-mentioned Greek banks
were implemented on 30 April 2010, when the stand-alone ratings as
well as the deposit and debt ratings of all nine banks were
downgraded.
All of the nine rated banks affected by the rating actions are
headquartered in Athens, Greece.
National Bank of Greece SA reported total assets of
EUR117.5 billion at the end of March 2010.
EFG Eurobank Ergasias reported total assets of EUR85.9 billion at
the end of March 2010.
Alpha Bank SA reported total assets of EUR68.6 billion at the end
of March 2010.
Piraeus Bank SA reported total assets of EUR55.2 billion at the
end of March 2010.
Agricultural Bank of Greece SA reported total assets of
EUR33.7 billion at the end of March 2010
Emporiki Bank of Greece SA reported total assets of
EUR27.9 billion at the end of March 2010.
Marfin Egnatia Bank SA reported total assets of EUR23.4 billion at
the end of March 2010.
Attica Bank SA reported total assets of EUR4.9 billion at the end
of March 2010.
General Bank of Greece SA reported total assets of EUR4.8 billion
at the end of March 2010.
ALPHA BANK: Moody's Cuts Rating to Ba1/Not-Prime
------------------------------------------------
Moody's Investors Service has taken rating actions on the debt and
deposit ratings of nine Greek banks reflecting the rating agency's
downgrade of the Greek government's sovereign debt rating to Ba1
from A3, with a stable outlook. The banks' stand-alone financial
strength ratings are not affected by the rating actions, neither
are the banks' hybrid debt ratings as those are linked to the
banks' stand-alone ratings.
The rating actions on the affected banks are: National Bank of
Greece (downgraded to Ba1/Not-Prime from Baa2/Prime-2), EFG
Eurobank Ergasias SA (downgraded to Ba1/Not-Prime from Baa3/Prime-
3), Alpha Bank AE (downgraded to Ba1/Not-Prime from Baa3/Prime-3),
Agricultural Bank of Greece (downgraded to Ba2/Not-Prime from
Baa3/Prime-3), Emporiki Bank of Greece SA (downgraded to
Baa3/Prime-3 from Baa2/Prime-2), and General Bank of Greece SA
(downgraded to Baa3/Prime-3 from Baa2/Prime-2). Moody's has also
confirmed the long-term debt and deposit ratings of Piraeus Bank
SA at Ba1 and Attica Bank SA at Ba2. In addition, Moody's has
placed the Baa2 long-term deposit rating of Marfin Egnatia Bank SA
(MEB) on review with direction uncertain, while the short-term
Prime-2 rating has been placed on review for possible downgrade.
Please see below for a full list of the affected ratings.
The downgrade of the Greek government's rating has prompted
Moody's to lower its assessment of the capacity of the Greek
government to support its banking system, consistent with the
change in the sovereign debt rating. Moody's utilizes a 'systemic
support indicator' as an anchor to measure a country's capacity to
support its banking system in case of need, and it is used by
Moody's to assign the supported deposit and debt ratings of banks.
Greece's systemic support indicator remains positioned one notch
above the national government's debt rating. The rationale for
maintaining the country's support indicator above the government
rating -- despite the government's weakened fiscal position --
incorporates the Greek and European authorities' commitment to
support the Greek banking system through a range of (financial and
non-financial) tools that can be deployed to assist banks.
Moody's notes that the rating actions are not driven by a change
in the agency's view on the Greek banks' intrinsic financial
strengths, which are captured in the banks' stand-alone ratings,
the BFSRs. Nor do they reflect a change in the rating agency's
assumptions regarding the likelihood of systemic support for each
bank. The rating agency added, however, that concerns about
liquidity pressures and asset quality deterioration had led to
some downward adjustments in the banks' stand-alone ratings
earlier this year.
Foreign-owned subsidiaries
Despite the downward adjustment in the country's systemic support
indicator, the deposit and debt ratings of Emporiki Bank of Greece
SA and General Bank of Greece SA continue to receive significant
uplift from Moody's assessment of a very high probability of
support from their French parents (Credit Agricole SA (Aa1/B-) and
Societe Generale (Aa2/C+), respectively) if needed. This explains
their above-average ratings within the Greek banking system,
despite having stand-alone credit attributes that are weaker than
some of the largest Greek banks.
Similarly, the deposit and debt ratings of MEB currently benefit
from parental support offered by Marfin Popular Bank (A3/C-), a
Cyprus-based institution. The decision to place MEB's long-term
deposit ratings on review with direction uncertain is explained by
two factors. Firstly, the ratings of the parent bank are now
under review for possible downgrade and a lowering of those
ratings could negatively impact MEB's long-term ratings.
Secondly, plans are under way for MEB to lose its subsidiary
status and be absorbed by its Cyprus-based parent. Under this
merger scenario, MEB's obligations would become obligations of
Marfin Popular Bank, and MEB's long-term ratings would migrate
upward, towards the higher rating of the parent. The impact of
these factors on the short-term rating of MEB differs:
accordingly, the short-term deposit rating of the bank was placed
under review, but for a possible downgrade only.
The specific rating changes implemented are:
National Bank of Greece SA and NBG Finance plc:
-- Deposit ratings downgraded to Ba1/Not-Prime from Baa2/Prime-2
-- Senior unsecured debt rating downgraded to Ba1 from Baa2
-- Subordinated debt ratings downgraded to Ba2 from Baa3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
EFG Eurobank Ergasias SA, EFG Hellas plc, and EFG Hellas (Cayman
Islands) Limited:
-- Deposit ratings and senior unsecured debt ratings downgraded
to Ba1/Not-Prime from Baa3/Prime-3
-- Commercial paper downgraded to Not-Prime from Prime-3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
-- Backed (government-guaranteed) senior unsecured MTN
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
Alpha Bank AE, Alpha Credit Group plc and Alpha Group Jersey
Limited:
-- Deposit and senior unsecured debt ratings downgraded to
Ba1/Not-Prime from Baa3/Prime-3
-- Commercial Paper downgraded to Not-Prime from Prime-3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
All the above ratings carry a stable outlook.
Piraeus Bank SA and Piraeus Group Finance plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba1
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings confirmed at Ba2
All the above ratings carry a negative outlook, with the exception
of the backed (government-guaranteed) senior unsecured ratings
that carry a stable outlook.
Agricultural Bank of Greece SA and ABG Finance International plc:
-- Deposit and senior unsecured debt ratings downgraded to
Ba2/Not-Prime from Baa3/Prime-3
-- Subordinated debt ratings downgraded to Ba3 from Ba1
All the above ratings carry a stable outlook.
Emporiki Bank of Greece SA and Emporiki Group Finance plc:
-- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from Baa2/Prime-2
-- Subordinated debt rating downgraded to Ba1 from Baa3
All the above ratings carry a stable outlook.
Marfin Egnatia Bank SA and Egnatia Finance plc:
-- Deposit and senior unsecured debt of Baa2 ratings placed
under review with direction uncertain
-- Subordinated debt ratings of Baa3 placed under review with
direction uncertain
-- Short-term Prime-2 ratings placed under review for possible
downgrade
Attica Bank SA and Attica Funds plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba2
-- Subordinated debt rating confirmed at Ba3
All the above ratings carry a negative outlook.
General Bank of Greece SA:
-- Deposit ratings downgraded to Baa3/Prime-3 from Baa2/ Prime-
2; the ratings carry a stable outlook
The previous rating actions on the above-mentioned Greek banks
were implemented on 30 April 2010, when the stand-alone ratings as
well as the deposit and debt ratings of all nine banks were
downgraded.
All of the nine rated banks affected by the rating actions are
headquartered in Athens, Greece.
National Bank of Greece SA reported total assets of
EUR117.5 billion at the end of March 2010.
EFG Eurobank Ergasias reported total assets of EUR85.9 billion at
the end of March 2010.
Alpha Bank SA reported total assets of EUR68.6 billion at the end
of March 2010.
Piraeus Bank SA reported total assets of EUR55.2 billion at the
end of March 2010.
Agricultural Bank of Greece SA reported total assets of
EUR33.7 billion at the end of March 2010
Emporiki Bank of Greece SA reported total assets of
EUR27.9 billion at the end of March 2010.
Marfin Egnatia Bank SA reported total assets of EUR23.4 billion at
the end of March 2010.
Attica Bank SA reported total assets of EUR4.9 billion at the end
of March 2010.
General Bank of Greece SA reported total assets of EUR4.8 billion
at the end of March 2010.
ALPHA BANK: Moody's Cuts Covered Bond Rating to Ba1
---------------------------------------------------
Moody's Investors Service has taken these rating actions in
respect of covered bonds issued by Greek banks:
-- Mortgage covered bonds issued by Alpha Bank S.A.:
downgraded to Baa2; previously on 30 April 2010 downgraded to
A2 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR3 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR5 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade; and
-- Mortgage covered bonds issued by National Bank of Greece:
Downgraded to Baa3; previously on 29 April 2010 downgraded to
A1 on review for possible downgrade.
This rating action ends the review of the covered bonds issued by
Alpha, Eurobank EFG and NBG.
These rating actions on the covered bonds were prompted by Moody's
decision to downgrade each issuer's senior unsecured ratings:
-- Alpha: downgraded to Ba1 from Baa3 on review for possible
downgrade on 15 June 2010;
-- Eurobank EFG: downgraded to Ba1 from Baa3 on review for
possible downgrade on 15 June 2010;
-- NBG: downgraded to Ba1 from Baa2 on review for possible
downgrade on 15 June 2010.
The rating actions on the banks were prompted by the downgrade of
Greece's sovereign ratings. The above covered bond ratings are no
longer on review as the senior unsecured ratings of the respective
issuers are no longer on review.
The downgrades of the issuers' senior unsecured ratings mean that
the Timely Paying Indicators for each of Alpha, Eurobank EFG and
NBG constrain the ratings of their covered bonds at the new rating
levels. In this regard, Moody's has reduced the TPI for NBG from
Improbable to Very Improbable, and has made the same adjustment
for Marfin Egnatia Bank A.S. though this has not affected Marfin's
covered bond rating. The reduction of the TPIs was prompted by
the downgrade of the sovereign rating of Greece to Ba1 which
raises further concerns about the ability or inclination of the
Greek government to directly or indirectly support Greek covered
bonds and the future volatility of asset performance given the
weakness of the Greek economy.
Alpha's TPI remains Improbable due to the fact that all covered
bonds benefit from an extension period of 10 years. Such
extension period is beneficial for refinancing the cover pool as
both the assets can be expected to have significantly paid down,
and there is more time for the cover pool administrator to arrange
for a sale. However, Moody's notes that a potential significant
increase of the arrears levels in the cover pool may increase the
likelihood that the Amortization Test is triggered after
insolvency of the issuer. Moody's will therefore closely monitor
the performance of the cover pool going forward.
The TPIs of Very Improbable assigned to the programmes of Eurobank
EFG are unaffected by this rating action.
The ratings assigned to the covered bonds issued by Marfin remain
unchanged at A1 on review for possible downgrade. The covered
bonds issued by Marfin benefit from credit support provided by the
parent of the issuer, Marfin Popular Bank Public Company Ltd. As
the senior unsecured ratings of the parent are on review for
possible downgrade, the covered bonds of Marfin also remain on
review for possible downgrade.
Rating Methodology
Moody's rating for any covered bond is determined after applying a
two-step process:
(1) Moody's determines a rating based on the expected loss on the
bond. This is modelled as a function of the issuer's
probability of default and the stressed losses on the cover
pool assets following issuer default; and
(2) Moody's assigns a TPI which indicates the likelihood that
timely payment will be made to covered bondholders following
issuer default. The effect of the TPI is to limit the covered
bond rating to a certain number of notches above the issuer's
rating.
The rating assigned by Moody's addresses the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield and to
investors.
EFG EUROBANK: Moody's Cuts Rating to Ba1/Not-Prime
------------------------------------------------
Moody's Investors Service has taken rating actions on the debt and
deposit ratings of nine Greek banks reflecting the rating agency's
downgrade of the Greek government's sovereign debt rating to Ba1
from A3, with a stable outlook. The banks' stand-alone financial
strength ratings are not affected by the rating actions, neither
are the banks' hybrid debt ratings as those are linked to the
banks' stand-alone ratings.
The rating actions on the affected banks are: National Bank of
Greece (downgraded to Ba1/Not-Prime from Baa2/Prime-2), EFG
Eurobank Ergasias SA (downgraded to Ba1/Not-Prime from Baa3/Prime-
3), Alpha Bank AE (downgraded to Ba1/Not-Prime from Baa3/Prime-3),
Agricultural Bank of Greece (downgraded to Ba2/Not-Prime from
Baa3/Prime-3), Emporiki Bank of Greece SA (downgraded to
Baa3/Prime-3 from Baa2/Prime-2), and General Bank of Greece SA
(downgraded to Baa3/Prime-3 from Baa2/Prime-2). Moody's has also
confirmed the long-term debt and deposit ratings of Piraeus Bank
SA at Ba1 and Attica Bank SA at Ba2. In addition, Moody's has
placed the Baa2 long-term deposit rating of Marfin Egnatia Bank SA
(MEB) on review with direction uncertain, while the short-term
Prime-2 rating has been placed on review for possible downgrade.
Please see below for a full list of the affected ratings.
The downgrade of the Greek government's rating has prompted
Moody's to lower its assessment of the capacity of the Greek
government to support its banking system, consistent with the
change in the sovereign debt rating. Moody's utilizes a 'systemic
support indicator' as an anchor to measure a country's capacity to
support its banking system in case of need, and it is used by
Moody's to assign the supported deposit and debt ratings of banks.
Greece's systemic support indicator remains positioned one notch
above the national government's debt rating. The rationale for
maintaining the country's support indicator above the government
rating -- despite the government's weakened fiscal position --
incorporates the Greek and European authorities' commitment to
support the Greek banking system through a range of (financial and
non-financial) tools that can be deployed to assist banks.
Moody's notes that the rating actions are not driven by a change
in the agency's view on the Greek banks' intrinsic financial
strengths, which are captured in the banks' stand-alone ratings,
the BFSRs. Nor do they reflect a change in the rating agency's
assumptions regarding the likelihood of systemic support for each
bank. The rating agency added, however, that concerns about
liquidity pressures and asset quality deterioration had led to
some downward adjustments in the banks' stand-alone ratings
earlier this year.
Foreign-owned subsidiaries
Despite the downward adjustment in the country's systemic support
indicator, the deposit and debt ratings of Emporiki Bank of Greece
SA and General Bank of Greece SA continue to receive significant
uplift from Moody's assessment of a very high probability of
support from their French parents (Credit Agricole SA (Aa1/B-) and
Societe Generale (Aa2/C+), respectively) if needed. This explains
their above-average ratings within the Greek banking system,
despite having stand-alone credit attributes that are weaker than
some of the largest Greek banks.
Similarly, the deposit and debt ratings of MEB currently benefit
from parental support offered by Marfin Popular Bank (A3/C-), a
Cyprus-based institution. The decision to place MEB's long-term
deposit ratings on review with direction uncertain is explained by
two factors. Firstly, the ratings of the parent bank are now
under review for possible downgrade and a lowering of those
ratings could negatively impact MEB's long-term ratings.
Secondly, plans are under way for MEB to lose its subsidiary
status and be absorbed by its Cyprus-based parent. Under this
merger scenario, MEB's obligations would become obligations of
Marfin Popular Bank, and MEB's long-term ratings would migrate
upward, towards the higher rating of the parent. The impact of
these factors on the short-term rating of MEB differs:
accordingly, the short-term deposit rating of the bank was placed
under review, but for a possible downgrade only.
The specific rating changes implemented are:
National Bank of Greece SA and NBG Finance plc:
-- Deposit ratings downgraded to Ba1/Not-Prime from Baa2/Prime-2
-- Senior unsecured debt rating downgraded to Ba1 from Baa2
-- Subordinated debt ratings downgraded to Ba2 from Baa3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
EFG Eurobank Ergasias SA, EFG Hellas plc, and EFG Hellas (Cayman
Islands) Limited:
-- Deposit ratings and senior unsecured debt ratings downgraded
to Ba1/Not-Prime from Baa3/Prime-3
-- Commercial paper downgraded to Not-Prime from Prime-3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
-- Backed (government-guaranteed) senior unsecured MTN
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
Alpha Bank AE, Alpha Credit Group plc and Alpha Group Jersey
Limited:
-- Deposit and senior unsecured debt ratings downgraded to
Ba1/Not-Prime from Baa3/Prime-3
-- Commercial Paper downgraded to Not-Prime from Prime-3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
All the above ratings carry a stable outlook.
Piraeus Bank SA and Piraeus Group Finance plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba1
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings confirmed at Ba2
All the above ratings carry a negative outlook, with the exception
of the backed (government-guaranteed) senior unsecured ratings
that carry a stable outlook.
Agricultural Bank of Greece SA and ABG Finance International plc:
-- Deposit and senior unsecured debt ratings downgraded to
Ba2/Not-Prime from Baa3/Prime-3
-- Subordinated debt ratings downgraded to Ba3 from Ba1
All the above ratings carry a stable outlook.
Emporiki Bank of Greece SA and Emporiki Group Finance plc:
-- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from Baa2/Prime-2
-- Subordinated debt rating downgraded to Ba1 from Baa3
All the above ratings carry a stable outlook.
Marfin Egnatia Bank SA and Egnatia Finance plc:
-- Deposit and senior unsecured debt of Baa2 ratings placed
under review with direction uncertain
-- Subordinated debt ratings of Baa3 placed under review with
direction uncertain
-- Short-term Prime-2 ratings placed under review for possible
downgrade
Attica Bank SA and Attica Funds plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba2
-- Subordinated debt rating confirmed at Ba3
All the above ratings carry a negative outlook.
General Bank of Greece SA:
-- Deposit ratings downgraded to Baa3/Prime-3 from Baa2/ Prime-
2; the ratings carry a stable outlook
The previous rating actions on the above-mentioned Greek banks
were implemented on 30 April 2010, when the stand-alone ratings as
well as the deposit and debt ratings of all nine banks were
downgraded.
All of the nine rated banks affected by the rating actions are
headquartered in Athens, Greece.
National Bank of Greece SA reported total assets of
EUR117.5 billion at the end of March 2010.
EFG Eurobank Ergasias reported total assets of EUR85.9 billion at
the end of March 2010.
Alpha Bank SA reported total assets of EUR68.6 billion at the end
of March 2010.
Piraeus Bank SA reported total assets of EUR55.2 billion at the
end of March 2010.
Agricultural Bank of Greece SA reported total assets of
EUR33.7 billion at the end of March 2010
Emporiki Bank of Greece SA reported total assets of
EUR27.9 billion at the end of March 2010.
Marfin Egnatia Bank SA reported total assets of EUR23.4 billion at
the end of March 2010.
Attica Bank SA reported total assets of EUR4.9 billion at the end
of March 2010.
General Bank of Greece SA reported total assets of EUR4.8 billion
at the end of March 2010.
EFG EUROBANK: Moody's Cuts Covered Bond Rating to Ba1
-----------------------------------------------------
Moody's Investors Service has taken these rating actions in
respect of covered bonds issued by Greek banks:
-- Mortgage covered bonds issued by Alpha Bank S.A.:
downgraded to Baa2; previously on 30 April 2010 downgraded to
A2 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR3 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR5 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade; and
-- Mortgage covered bonds issued by National Bank of Greece:
Downgraded to Baa3; previously on 29 April 2010 downgraded to
A1 on review for possible downgrade.
This rating action ends the review of the covered bonds issued by
Alpha, Eurobank EFG and NBG.
These rating actions on the covered bonds were prompted by Moody's
decision to downgrade each issuer's senior unsecured ratings:
-- Alpha: downgraded to Ba1 from Baa3 on review for possible
downgrade on 15 June 2010;
-- Eurobank EFG: downgraded to Ba1 from Baa3 on review for
possible downgrade on 15 June 2010;
-- NBG: downgraded to Ba1 from Baa2 on review for possible
downgrade on 15 June 2010.
The rating actions on the banks were prompted by the downgrade of
Greece's sovereign ratings. The above covered bond ratings are no
longer on review as the senior unsecured ratings of the respective
issuers are no longer on review.
The downgrades of the issuers' senior unsecured ratings mean that
the Timely Paying Indicators for each of Alpha, Eurobank EFG and
NBG constrain the ratings of their covered bonds at the new rating
levels. In this regard, Moody's has reduced the TPI for NBG from
Improbable to Very Improbable, and has made the same adjustment
for Marfin Egnatia Bank A.S. though this has not affected Marfin's
covered bond rating. The reduction of the TPIs was prompted by
the downgrade of the sovereign rating of Greece to Ba1 which
raises further concerns about the ability or inclination of the
Greek government to directly or indirectly support Greek covered
bonds and the future volatility of asset performance given the
weakness of the Greek economy.
Alpha's TPI remains Improbable due to the fact that all covered
bonds benefit from an extension period of 10 years. Such
extension period is beneficial for refinancing the cover pool as
both the assets can be expected to have significantly paid down,
and there is more time for the cover pool administrator to arrange
for a sale. However, Moody's notes that a potential significant
increase of the arrears levels in the cover pool may increase the
likelihood that the Amortization Test is triggered after
insolvency of the issuer. Moody's will therefore closely monitor
the performance of the cover pool going forward.
The TPIs of Very Improbable assigned to the programmes of Eurobank
EFG are unaffected by this rating action.
The ratings assigned to the covered bonds issued by Marfin remain
unchanged at A1 on review for possible downgrade. The covered
bonds issued by Marfin benefit from credit support provided by the
parent of the issuer, Marfin Popular Bank Public Company Ltd. As
the senior unsecured ratings of the parent are on review for
possible downgrade, the covered bonds of Marfin also remain on
review for possible downgrade.
Rating Methodology
Moody's rating for any covered bond is determined after applying a
two-step process:
(1) Moody's determines a rating based on the expected loss on the
bond. This is modelled as a function of the issuer's
probability of default and the stressed losses on the cover
pool assets following issuer default; and
(2) Moody's assigns a TPI which indicates the likelihood that
timely payment will be made to covered bondholders following
issuer default. The effect of the TPI is to limit the covered
bond rating to a certain number of notches above the issuer's
rating.
The rating assigned by Moody's addresses the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield and to
investors.
NATIONAL BANK: Moody's Cuts Rating to Ba1/Not-Prime
---------------------------------------------------
Moody's Investors Service has taken rating actions on the debt and
deposit ratings of nine Greek banks reflecting the rating agency's
downgrade of the Greek government's sovereign debt rating to Ba1
from A3, with a stable outlook. The banks' stand-alone financial
strength ratings are not affected by the rating actions, neither
are the banks' hybrid debt ratings as those are linked to the
banks' stand-alone ratings.
The rating actions on the affected banks are: National Bank of
Greece (downgraded to Ba1/Not-Prime from Baa2/Prime-2), EFG
Eurobank Ergasias SA (downgraded to Ba1/Not-Prime from Baa3/Prime-
3), Alpha Bank AE (downgraded to Ba1/Not-Prime from Baa3/Prime-3),
Agricultural Bank of Greece (downgraded to Ba2/Not-Prime from
Baa3/Prime-3), Emporiki Bank of Greece SA (downgraded to
Baa3/Prime-3 from Baa2/Prime-2), and General Bank of Greece SA
(downgraded to Baa3/Prime-3 from Baa2/Prime-2). Moody's has also
confirmed the long-term debt and deposit ratings of Piraeus Bank
SA at Ba1 and Attica Bank SA at Ba2. In addition, Moody's has
placed the Baa2 long-term deposit rating of Marfin Egnatia Bank SA
(MEB) on review with direction uncertain, while the short-term
Prime-2 rating has been placed on review for possible downgrade.
Please see below for a full list of the affected ratings.
The downgrade of the Greek government's rating has prompted
Moody's to lower its assessment of the capacity of the Greek
government to support its banking system, consistent with the
change in the sovereign debt rating. Moody's utilizes a 'systemic
support indicator' as an anchor to measure a country's capacity to
support its banking system in case of need, and it is used by
Moody's to assign the supported deposit and debt ratings of banks.
Greece's systemic support indicator remains positioned one notch
above the national government's debt rating. The rationale for
maintaining the country's support indicator above the government
rating -- despite the government's weakened fiscal position --
incorporates the Greek and European authorities' commitment to
support the Greek banking system through a range of (financial and
non-financial) tools that can be deployed to assist banks.
Moody's notes that the rating actions are not driven by a change
in the agency's view on the Greek banks' intrinsic financial
strengths, which are captured in the banks' stand-alone ratings,
the BFSRs. Nor do they reflect a change in the rating agency's
assumptions regarding the likelihood of systemic support for each
bank. The rating agency added, however, that concerns about
liquidity pressures and asset quality deterioration had led to
some downward adjustments in the banks' stand-alone ratings
earlier this year.
Foreign-owned subsidiaries
Despite the downward adjustment in the country's systemic support
indicator, the deposit and debt ratings of Emporiki Bank of Greece
SA and General Bank of Greece SA continue to receive significant
uplift from Moody's assessment of a very high probability of
support from their French parents (Credit Agricole SA (Aa1/B-) and
Societe Generale (Aa2/C+), respectively) if needed. This explains
their above-average ratings within the Greek banking system,
despite having stand-alone credit attributes that are weaker than
some of the largest Greek banks.
Similarly, the deposit and debt ratings of MEB currently benefit
from parental support offered by Marfin Popular Bank (A3/C-), a
Cyprus-based institution. The decision to place MEB's long-term
deposit ratings on review with direction uncertain is explained by
two factors. Firstly, the ratings of the parent bank are now
under review for possible downgrade and a lowering of those
ratings could negatively impact MEB's long-term ratings.
Secondly, plans are under way for MEB to lose its subsidiary
status and be absorbed by its Cyprus-based parent. Under this
merger scenario, MEB's obligations would become obligations of
Marfin Popular Bank, and MEB's long-term ratings would migrate
upward, towards the higher rating of the parent. The impact of
these factors on the short-term rating of MEB differs:
accordingly, the short-term deposit rating of the bank was placed
under review, but for a possible downgrade only.
The specific rating changes implemented are:
National Bank of Greece SA and NBG Finance plc:
-- Deposit ratings downgraded to Ba1/Not-Prime from Baa2/Prime-2
-- Senior unsecured debt rating downgraded to Ba1 from Baa2
-- Subordinated debt ratings downgraded to Ba2 from Baa3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
EFG Eurobank Ergasias SA, EFG Hellas plc, and EFG Hellas (Cayman
Islands) Limited:
-- Deposit ratings and senior unsecured debt ratings downgraded
to Ba1/Not-Prime from Baa3/Prime-3
-- Commercial paper downgraded to Not-Prime from Prime-3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
-- Backed (government-guaranteed) senior unsecured MTN
downgraded to Ba1 from A3
All the above ratings carry a stable outlook.
Alpha Bank AE, Alpha Credit Group plc and Alpha Group Jersey
Limited:
-- Deposit and senior unsecured debt ratings downgraded to
Ba1/Not-Prime from Baa3/Prime-3
-- Commercial Paper downgraded to Not-Prime from Prime-3
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings downgraded to Ba2 from Ba1
All the above ratings carry a stable outlook.
Piraeus Bank SA and Piraeus Group Finance plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba1
-- Backed (government-guaranteed) senior unsecured ratings
downgraded to Ba1 from A3
-- Subordinated debt ratings confirmed at Ba2
All the above ratings carry a negative outlook, with the exception
of the backed (government-guaranteed) senior unsecured ratings
that carry a stable outlook.
Agricultural Bank of Greece SA and ABG Finance International plc:
-- Deposit and senior unsecured debt ratings downgraded to
Ba2/Not-Prime from Baa3/Prime-3
-- Subordinated debt ratings downgraded to Ba3 from Ba1
All the above ratings carry a stable outlook.
Emporiki Bank of Greece SA and Emporiki Group Finance plc:
-- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from Baa2/Prime-2
-- Subordinated debt rating downgraded to Ba1 from Baa3
All the above ratings carry a stable outlook.
Marfin Egnatia Bank SA and Egnatia Finance plc:
-- Deposit and senior unsecured debt of Baa2 ratings placed
under review with direction uncertain
-- Subordinated debt ratings of Baa3 placed under review with
direction uncertain
-- Short-term Prime-2 ratings placed under review for possible
downgrade
Attica Bank SA and Attica Funds plc:
-- Long-term deposit and senior unsecured debt ratings confirmed
at Ba2
-- Subordinated debt rating confirmed at Ba3
All the above ratings carry a negative outlook.
General Bank of Greece SA:
-- Deposit ratings downgraded to Baa3/Prime-3 from Baa2/ Prime-
2; the ratings carry a stable outlook
The previous rating actions on the above-mentioned Greek banks
were implemented on 30 April 2010, when the stand-alone ratings as
well as the deposit and debt ratings of all nine banks were
downgraded.
All of the nine rated banks affected by the rating actions are
headquartered in Athens, Greece.
National Bank of Greece SA reported total assets of
EUR117.5 billion at the end of March 2010.
EFG Eurobank Ergasias reported total assets of EUR85.9 billion at
the end of March 2010.
Alpha Bank SA reported total assets of EUR68.6 billion at the end
of March 2010.
Piraeus Bank SA reported total assets of EUR55.2 billion at the
end of March 2010.
Agricultural Bank of Greece SA reported total assets of
EUR33.7 billion at the end of March 2010
Emporiki Bank of Greece SA reported total assets of
EUR27.9 billion at the end of March 2010.
Marfin Egnatia Bank SA reported total assets of EUR23.4 billion at
the end of March 2010.
Attica Bank SA reported total assets of EUR4.9 billion at the end
of March 2010.
General Bank of Greece SA reported total assets of EUR4.8 billion
at the end of March 2010.
NATIONAL BANK: Moody's Cuts Covered Bond Rating to Ba1
------------------------------------------------------
Moody's Investors Service has taken these rating actions in
respect of covered bonds issued by Greek banks:
-- Mortgage covered bonds issued by Alpha Bank S.A.:
downgraded to Baa2; previously on 30 April 2010 downgraded to
A2 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR3 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade;
-- Mortgage covered bonds issued by EFG Eurobank Ergasias
under its EUR5 billion Mortgage Covered Bond Programme:
downgraded to Baa3; previously on 30 April 2010
downgraded to A3 on review for possible downgrade; and
-- Mortgage covered bonds issued by National Bank of Greece:
Downgraded to Baa3; previously on 29 April 2010 downgraded to
A1 on review for possible downgrade.
This rating action ends the review of the covered bonds issued by
Alpha, Eurobank EFG and NBG.
These rating actions on the covered bonds were prompted by Moody's
decision to downgrade each issuer's senior unsecured ratings:
-- Alpha: downgraded to Ba1 from Baa3 on review for possible
downgrade on 15 June 2010;
-- Eurobank EFG: downgraded to Ba1 from Baa3 on review for
possible downgrade on 15 June 2010;
-- NBG: downgraded to Ba1 from Baa2 on review for possible
downgrade on 15 June 2010.
The rating actions on the banks were prompted by the downgrade of
Greece's sovereign ratings. The above covered bond ratings are no
longer on review as the senior unsecured ratings of the respective
issuers are no longer on review.
The downgrades of the issuers' senior unsecured ratings mean that
the Timely Paying Indicators for each of Alpha, Eurobank EFG and
NBG constrain the ratings of their covered bonds at the new rating
levels. In this regard, Moody's has reduced the TPI for NBG from
Improbable to Very Improbable, and has made the same adjustment
for Marfin Egnatia Bank A.S. though this has not affected Marfin's
covered bond rating. The reduction of the TPIs was prompted by
the downgrade of the sovereign rating of Greece to Ba1 which
raises further concerns about the ability or inclination of the
Greek government to directly or indirectly support Greek covered
bonds and the future volatility of asset performance given the
weakness of the Greek economy.
Alpha's TPI remains Improbable due to the fact that all covered
bonds benefit from an extension period of 10 years. Such
extension period is beneficial for refinancing the cover pool as
both the assets can be expected to have significantly paid down,
and there is more time for the cover pool administrator to arrange
for a sale. However, Moody's notes that a potential significant
increase of the arrears levels in the cover pool may increase the
likelihood that the Amortization Test is triggered after
insolvency of the issuer. Moody's will therefore closely monitor
the performance of the cover pool going forward.
The TPIs of Very Improbable assigned to the programmes of Eurobank
EFG are unaffected by this rating action.
The ratings assigned to the covered bonds issued by Marfin remain
unchanged at A1 on review for possible downgrade. The covered
bonds issued by Marfin benefit from credit support provided by the
parent of the issuer, Marfin Popular Bank Public Company Ltd. As
the senior unsecured ratings of the parent are on review for
possible downgrade, the covered bonds of Marfin also remain on
review for possible downgrade.
Rating Methodology
Moody's rating for any covered bond is determined after applying a
two-step process:
(1) Moody's determines a rating based on the expected loss on the
bond. This is modelled as a function of the issuer's
probability of default and the stressed losses on the cover
pool assets following issuer default; and
(2) Moody's assigns a TPI which indicates the likelihood that
timely payment will be made to covered bondholders following
issuer default. The effect of the TPI is to limit the covered
bond rating to a certain number of notches above the issuer's
rating.
The rating assigned by Moody's addresses the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield and to
investors.
WIND HELLAS: April & May Sales Fall; In Talks with Creditors
------------------------------------------------------------
Maria Petrakis and John Glover at Bloomberg News report that
Wind Hellas Telecommunications SA said sales and earnings slumped
in April and May.
According to Bloomberg, earnings at the company plunged as
government spending cuts and tax increases to tackle Greece's
budget deficit damaged consumer confidence and dented phone usage.
Sales in the two months dropped 27% from the same period a year
earlier, to EUR134 million as government austerity measures cut
consumers' willingness to spend, Bloomberg says, citing a
presentation on the company's Web site. Earnings before interest,
taxes, depreciation, amortization and some items fell 54% to
EUR25.2 million, Bloomberg notes.
According to Bloomberg, Wind Hellas said it retained Morgan
Stanley, White & Case and Karatzas & Partners as advisers and they
are in discussions with creditor groups and the Company's
shareholder, Weather Investments SpA.
Strategic Review
Anousha Sakoui and Andrew Parker at The Financial Times reports
that Wind Hellas, which is controlled by Egyptian entrepreneur
Naguib Sawiris, is embarking on a strategic review after its
performance was badly hurt by the country's financial crisis and
fierce competition.
The FT relates for the first three months of 2010, Weather Finance
III, Wind Hellas' holding company, had revenue of EUR216.9 million
(US$265.5 million), down 19% on the same period last year.
According to the FT, the net loss rose from EUR43.8 million in the
first quarter of last year to EUR51.3 million in the three months
to March 31. Weather Finance III had net debt of EUR1.8 billion
at March 31, and the company burnt through EUR14 million of cash
in the first quarter, the FT discloses.
"The launch of the Greek government's austerity measures in April
has further impacted performance and is putting significant
additional pressure on Wind Hellas' capital structure including
its liquidity and covenants," the FT quoted Wind Hellas as saying.
The FT notes Weather Finance III said in its first-quarter results
report that its ability to continue as a going concern was
dependent on the conclusions of the strategic review.
According to the FT, one person familiar with Weather Investments
said it is unclear whether the investment vehicle will put
additional funds into Wind Hellas, but it is unlikely to do so
with the existing capital structure.
As reported by the Troubled Company Reporter-Europe on June 1,
2010, Bloomberg News said Mr. Sawiris said "not ruling out" a
second debt restructuring at the company as austerity measures
weigh on consumer spending. Bloomberg disclosed Wind Hellas has
about EUR1.8 billion (US$2.2 billion) of debt.
About WIND Hellas
Headquartered in Athens, WIND Hellas Telecommunications S.A. --
http://www.wind.com.gr/-- is part of Weather Investments, a
global telecommunication group controlled by the Sawiris family
and Naguib Sawiris. Weather also owns Wind Telecommunicazioni
spa, the third largest mobile operator and second largest fixed
line operator in Italy as well as a 50% plus one share of Orascom
Telecom Holding S.A.E.
* * *
As reported by the Troubled Company Reporter-Europe on March 4,
2010, Fitch Ratings upgraded Greek-based integrated telecom
operator Wind Hellas Telecommunications SA's Long-term Issuer
Default Rating to 'CCC' from 'RD' and its Short-term IDR to 'C'
from 'D'. The rating actions follow both the completion of the
company's debt restructuring process in November 2009 and Fitch's
review of management's business strategy for 2010 and beyond.
=============
I R E L A N D
=============
ORTELIUS FINANCE: S&P Lowers Rating on US$10 Mil. Notes to 'CC'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC' from 'CCC-' its
credit rating on Ortelius Finance PLC's US$10 million floating-
rate series 2007-1 class 2C notes.
The downgrade follows confirmation that losses from credit events
in the underlying portfolio have exceeded the available credit
enhancement. Therefore, S&P expects the noteholders to suffer a
principal loss at maturity.
QUINN INSURANCE: Won't Need to Invoke Involuntary Redundancies
--------------------------------------------------------------
Belfast Telegraph reports that the administrators of Quinn
Insurance have informed employees they will not have to make any
compulsory redundancies at the company.
According to Belfast Telegraph, the company has confirmed that,
after receiving the 900 applications it needed for a voluntary-led
compulsory redundancy process, it will not need to invoke
involuntary redundancies.
Belfast Telegraph notes Quinn Insurance also told employees that
Macquarie Merchant Bank has been appointed to manage the sale of
Quinn Insurance Limited, and that the Quinn Group has agreed that
Quinn Healthcare will also be sold as part of this process.
On May 26, 2010, the Troubled Company Reporter-Europe, citing The
Irish Times, reported that Liberty Mutual, one of the largest US
insurance companies, has said it is interested in buying Quinn
Insurance as a means of significantly expanding its operations in
Europe. The Irish Times disclosed if a takeover proceeds, the
sale could leave the Cavan-based insurer intact and minimize
further job losses beyond the 902 sought from the 2,450-strong
workforce.
As reported by the Troubled Company Reporter-Europe on April 19,
2010, The Financial Times said Quinn Insurance was put into
administration on April 15 after Sean Quinn abandoned attempts to
keep control of the family-owned company.
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has just more than 20% of the motor and
health insurance market in Ireland. It has more than one million
customers in the country. Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004, according to The Times.
=========
I T A L Y
=========
IT HOLDING: July 6 Deadline Set for Gianfranco Ferre Bids
---------------------------------------------------------
Danilo Masoni at Reuters reports that the auction of Italian
fashion house Gianfranco Ferre was launched on Wednesday by the
special commissioners running parent company IT Holding.
Reuters relates in a notice published in newspapers, the three
overseers set a July 6 deadline to submit binding offers for Ferre
and an Aug. 2 deadline for binding offers for Ittierre, the IT
Holding unit which makes and distributes clothes for lines such as
Just Cavalli and Galliano.
According to Reuters, the commissioners also put up for sale a
property in Porto Cervo, a seaside vacation spot on the exclusive
Emerald Coast in Sardinia, calling for binding offers to be
submitted by July 6. They are also seeking to sell cashmere brand
Malo, Reuters notes.
About IT Holding SpA
IT Holding SpA -- http://www.itholding.com/-- is a Milan, Italy-
based company operating in the luxury goods market. The Company
and its subsidiaries design, produce and distribute apparel,
accessories, eyewear and perfumes. Its brand portfolio embraces:
owned brands, Gianfranco Ferre, Malo, Exte, as well as licensed
brands, Versace Jeans Couture, Versace Sport, Just Cavalli, C'N'C
Costume National and Galliano. The Company's production facilities
are located in Italy. IT Holding SpA has a worldwide distribution
network, including 39 directly operated stores, 274 monobrand
stores and over 6,000 department and specialty stores. In order
to be present in the most significant markets, IT Holding SpA has
dedicated market companies: ITTIERRE SpA, ITTIERRE France SA,
ITTIERRE Moden GmbH, IT USA HOLDING Inc and IT Asia Pacific
Limited, among others.
=====================
N E T H E R L A N D S
=====================
SGA SOCIETE: S&P Withdraws 'CCC' Rating on Eden Portfolio
---------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
two European collateralized debt obligation tranches: SGA Societe
Generale Acceptance N.V.'s Eden portfolio forward credit-linked
series 10754/06-2 notes, and Claris Ltd.'s Voltaire floating-rate
credit-linked series 65/2006 notes.
The withdrawals follow the arrangers' recent notification to us
that the issuers had fully repurchased these notes.
Ratings List
Ratings Withdrawn
SGA Societe Generale Acceptance N.V.
EUR5 Million Eden Portfolio Forward Credit-Linked Notes Series
10754/06-2
Ratings
-------
To From
-- ----
NR CCC-
Claris Ltd.
US$20 Million Voltaire Floating-Rate Credit-Linked Notes Series
65/2006
Ratings
-------
To From
-- ----
NR CCC-
NR -- Not rated.
===========
R U S S I A
===========
CENTER-INVEST BANK: Moody's Shifts Outlook on B1 Rating to Stable
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Center-Invest
Bank's B1 long-term foreign currency deposit rating back to stable
from negative. The bank financial strength rating of E+ and Not-
Prime short-term foreign currency deposit rating were affirmed.
The outlook on BFSR remains stable. Concurrently, Moody's
Interfax Rating Agency affirmed Center-Invest Bank's A2.ru long-
term national scale rating. Moscow-based Moody's Interfax is
majority-owned by Moody's, a leading global rating agency.
"Center-Invest Bank has mostly restored its pre-provision income
over the last several quarters, which currently enables it to
withstand asset quality problems without a significant negative
impact on capitalization," said Mr. Semyon Isakov, a Moody's
Assistant Vice-President and the lead analyst for the bank. "In
addition, deterioration in asset quality was less severe than
previously anticipated by Moody's, while the bank's liquidity
profile remains adequate with low refinancing risk," added
Mr. Isakov.
Moody's notes that the current ratings reflect Center-Invest
Bank's strong franchise in its home market in Russia's South
Federal District, particularly in Rostov-on-Don region, a sizeable
SME and retail client base supported by region-wide coverage, and
the international profile of the bank's shareholder structure as
well as a reasonably adequate financial fundamentals. At the same
time, high single-name concentration of the loan book ranging from
150% to 200% of the bank's Tier 1 capital, high geographical
concentration of business in a single Russian region and tight
credit environment represent the key rating constraints on the
bank's BFSR at E+.
Moody's previous rating action on Center-Invest Bank was on 7 May
2009, when the rating agency changed to negative from stable the
outlook on the bank's B1 long-term deposit rating and affirmed E+
BFSR with a stable outlook. The bank's Not-Prime short-term
deposit rating was also affirmed. Concurrently on 7 May 2009,
Moody's Interfax Rating Agency downgraded Center-Invest Bank's
long-term NSR to A2.ru from A1.ru.
Headquartered in Rostov-on-Don, Russia, Center-Invest Bank
reported -- at 31 December 2009 -- total consolidated audited
assets of RUB42.9 billion (US$1.4 million) and total shareholders'
equity of RUB5.4 billion (US$180 million). IFRS net income for
2009 was RUB66 million (US$2.2 million).
RUSHYDRO JSC: Moody's Downgrades Issuer Rating to 'Ba1'
-------------------------------------------------------
Moody's Investors Service has downgraded the issuer rating of JSC
RusHydro to Ba1 from Baa3. Concurrently, Moody's has assigned a
Ba1 Corporate Family Rating to RusHydro. The outlook is stable.
In conjunction with this, Moody's Interfax, which is majority
owned by Moody's, downgraded RusHydro's National Scale Rating to
Aa1.ru from Aaa.ru.
The rating actions conclude the review for possible downgrade that
was initiated on 5 October 2009 due to uncertainties surrounding
the impact on the creditworthiness of the company from the August
2009 accident at Sayano-Shushenskaya Hydro Power Plant, RusHydro's
largest HPP.
The downgrade reflects Moody's view that RusHydro's
creditworthiness is now more commensurate with a high non-
investment grade rating of Ba1 than a low investment grade of
Baa3. Although the downgrade follows the review initiated in
connection with the SS HPP accident, Moody's notes that the
company seems to be in a position to limit the negative
consequences of the accident. However, Moody's decided to
downgrade RusHydro's rating to Ba1, to take into account the
challenges facing the company in the evolving regulatory and
operating environment, of which the SS HPP accident is a symptom.
Moody's considers that the visibility of the evolution of the
company's credit profile over the next 12-18 months is lower than
what it would expect from an investment-grade-rated company.
The rating agency acknowledges that with support from the
government, RusHydro has managed to contain the impact of the SS
HPP shutdown on its 2009 financial results and is implementing the
restoration of SS HPP in line with an ambitious plan, although the
process is in its early stages and will take a few years. The
restoration investments are funded as scheduled, with an order for
new equipment placed with manufacturers, two of SS HPP's ten
hydro-units returned into operation and the construction of the
shore spill-over at SS HPP completed. So far, the accident-
related burden has been reasonably accommodated under the
company's financial profile, which as of end-2009, is strong for
the current rating.
However, in Moody's view, the accident added pressure and
uncertainties, heightened the financial and execution risks
associated with large and urgent investment needs and limited the
company's flexibility in the context of the challenges associated
with the evolving Russian electric utility sector. In particular,
the challenges include: (i) the evolving regulatory and market
framework; (ii) the developing configuration of the sector, with
the consolidation process and re-distribution of influence among
state-controlled market players under way; and (iii) the
uncertainties regarding the state's involvement and support for
the sector and specific companies in the new more market-driven
environment. Moody's notes the changes in RusHydro's management
team following the accident at SS HPP. It also notes the delayed
finalization of a mid-term business plan at a time when the
company is pursuing acquisitions of power supply businesses and
may pursue a more acquisitive strategy going forward, if it
considers acquisitions of stakes in other hydropower assets that
may become available. In this market environment, it is unclear
whether RusHydro retains the ability to supplement internal cash
flow generation with proceeds from disposals of potentially
valuable financial assets in support of its investment program.
The outlook on the rating is stable, factoring in the headroom in
the company's financial profile at the end of 2009 within the
current rating category and acceptable liquidity. RusHydro's
rating remains underpinned by its strong business fundamentals as
Russia's largest low-cost hydro generator, which is well
positioned to benefit from the Russian wholesale power market
liberalization and should be able to absorb the risks of market
fluctuations. Its rating is constrained by its large investment
needs, the limited visibility on the company's and market future
evolution and the broader risks of Russia's business environment.
Strong state support is still factored into the rating --
currently equivalent to a two-notch uplift to Moody's assessment
of the company's standalone credit quality -- as RusHydro is
controlled by the state and considered a Government-Related Issuer
(GRI) by Moody's.
The previous rating action on RusHydro was implemented on 5
October 2009, when Moody's placed RusHydro's Baa3 on review for
possible downgrade due to the uncertainties surrounding the impact
on the creditworthiness of the company from the August 2009
accident at SS HPP.
Headquartered in Moscow, RusHydro is Russia's largest generator of
hydro electricity. RusHydro is controlled by the Russian
government, whose stake in the company is approximately 60%. In
2009, the company's contribution to Russia's total installed
capacity and electricity output was around 12%, if the SS HPP
capacity was counted, and 9%, respectively. In 2009, RusHydro's
IFRS revenues were RUB115.6 billion (approximately
USD3.7 billion).
===========
S W E D E N
===========
SAAB AUTOMOBILE: To Repay Creditors Today Under Debt Writedown
--------------------------------------------------------------
Kim McLaughlin at Bloomberg News reports that Saab Automobile AB
said it has settled with its creditors under a court-approved
proposal to write down unprioritized debt by 75% as part of its
reorganization last year.
According to Bloomberg, Saab said creditors with an undisputed
claim will be paid today, June 17.
The Troubled Company Reporter-Europe, citing Bloomberg News,
reported on Feb. 23, 2009, that Saab filed for protection from
creditors after parent General Motors said it would cut ties with
the Swedish carmaker following two decades of losses. The
Trollhaettan, Sweden-based company filed for reorganization with a
Swedish district court to separate itself from GM and bring
resources back to Sweden.
On June 25, 2009, Troubled Company Reporter, citing The Wall
Street Journal, reported creditors of Saab approved the
automakers' proposal for settling its debts by paying a quarter of
what it originally owed. Saab proposed to settle its debts by
paying 25% of about US$1.34 billion it owed to more than 600
creditors, including auto suppliers and the Swedish government.
The vast majority of the debt, almost SEK10 billion, was owed to
GM.
Saab Automobile AB -- http://www.saab.com/-- is a wholly owned
subsidiary of General Motors. With an annual production of up to
126,000 cars, Saab's current models include the 9-3 (available as
a convertible or sport sedan), the luxury 9-5 sedan (also
available in a sport wagon), and the seven-passenger 9-7X SUV.
===========
T U R K E Y
===========
PETKIM PETROKIMYA: Fitch Affirms 'BB-' Issuer Default Rating
------------------------------------------------------------
Fitch Ratings has affirmed Turkey-based petrochemicals producer
Petkim Petrokimya Holdings A.S.'s Long-term foreign and local
currency Issuer Default Ratings at 'BB-'. Both ratings have
Negative Outlooks. Fitch has additionally revised Petkim's
National Long-term rating to 'A(tur)' from 'AA-(tur)'. The
Outlook on the National Long-term rating is Negative.
The revision of Petkim's National rating reflects a recalibration
of the agency's Turkish National rating scale on 23 December 2009
following Fitch's sovereign rating upgrade of Turkey. The action
does not reflect any deterioration in the stand-alone credit
quality of the company.
The maintenance of the Negative Outlook reflects that, despite the
improvement in the company's operating and financial profile in
2009 and Q110, there is a risk that Petkim may turn into a net
debt company on a sustainable basis over the medium-term. This
risk is predicated on the company underperforming Fitch's current
base case which assumes an EBITDAR margin of 6%-7%, and neutral
free cash flow in 2010-2011 followed by stronger FCF generation.
Fitch views Petkim's continuing integration with its shareholder -
State Oil Company of Azerbaijan Republic (SOCAR, 'BBB-
'/Stable/'F3') -- as positive. Petkim is planning to start
purchasing natural gas directly from SOCAR to avoid costly
intermediaries. SOCAR has also recently received approval to
start construction of a refinery located on Petkim-owned land
adjacent to Petkim's own plants in Turkey with a total capacity of
10 million tonnes per annum which is expected to commence
operations by end- 2014. These and other cases of increasing
integration should improve operational efficiencies and
profitability. However, Fitch conservatively does not explicitly
factor in these positive developments in Petkim's ratings and
assumes no support from the parent. Fitch also acknowledges that
investments in energy and other operational efficiencies may
result in improvements in profitability and considers this as an
upside to the current forecasts.
Despite better than expected performance in 2009 and Q110, the
agency's conservative forecasts are predicated on minimal growth
in volumes sold in 2010-2012 as production is restricted by
capacity constraints. Expected investments in 2010-12 should
increase saleable production capacity by 5% and 10% in 2012 and
2013, respectively. Fitch assumes prices for Petkim's main
products will decline by about 5% from Q110 levels and stabilize
in 2011-2012. As a result, Petkim's revenues are expected to
increase by around 30% in 2010 with single-digit growth in 2011-
2012, while EBITDAR margins are expected to remain at 6%-7%.
Under this scenario, the agency forecasts Petkim's cash flow from
operations to average TRY100 million in 2010-2011 before doubling
in 2012. The forecasts assume capex, including maintenance
spending, of TRY100 million-120 million during 2010-2012 and no
dividend payments until 2012 of 30% of net income. As a result,
the agency expects neutral FCF in 2010-11 followed by strong FCF
generation, due to better margins as well as the release of
working capital and higher production capacity.
In FY09, Petkim reported a revenue decline of 11% and a strong
TRY159 million operating profit, better than many of its peers.
Together with TRY70 million of capex this resulted in FCF of TRY89
million. As of 1 June 2010, Fitch estimates Petkim's gross debt
at TRY110 million. Capacity utilization rates remain in the high
90s.
=============
U K R A I N E
=============
ZEMELNYI BANK: Needs UAH500-Mil. to Stabilize Finances
------------------------------------------------------
Kommersant-Ukraine, citing Nina Hryshyna, PAT Zemelnyi Bank's
temporary manager, reported that the Ukrainian lender is seeking
UAH500 million of investments in order to stabilize its finances,
Kateryna Choursina writes Bloomberg News.
Bloomberg recalls Natsionalnyi Bank Ukrainy appointed temporary
management to Zemelnyi in May.
PAT Zemelnyi Bank is based in Kharkiv.
===========================
U N I T E D K I N G D O M
===========================
BAGGELEY & JENKINS: In Administration; Up to 30 Jobs Affected
-------------------------------------------------------------
Baggeley & Jenkins has gone into administration, resulting in the
loss of up to 30 jobs, thisisnottingham.co.uk reports.
According to the report, the company has been hit by the cutbacks
in public sector spending and the general economic downturn
The report relates administrators from the accountancy firm RSM
Tenon were called into the company's Hermitage Way headquarters on
Tuesday.
Baggeley & Jenkins is a construction firm based in Mansfield. The
company carried out building and refurbishment work for councils,
schools and health services.
BARCUD DERWEN: In Administration; 35 Jobs Affected
--------------------------------------------------
BBC News reports that Barcud Derwen has gone into administration
with the loss of 35 jobs in Caernarfon.
According to the report, Grant Thornton was appointed
administrator of the company. The report says the administration
affects Barcud Derwen Cyfyngedig, Derwen Ltd., Barcud Derwen
(Scotland) Ltd., Awen Cyfyngedig, Eclipse (Creative) Ltd and 422
Ltd.
The report relates Alistair Wardell, Cardiff-based partner of
Grant Thornton, on Tuesday said the joint administrators and Grant
Thornton staff were working towards achieving a sale of the
business and assets of the companies, with the exception of the
Caernarfon division, within the next 24-48 hours.
"While the group has suffered difficult trading conditions in
recent time, there remain a number of very good businesses within
it, which we are working very hard to secure," the report quoted
Mr. Wardell as saying.
Barcud Derwen is a TV facilities company based in Caernarfon,
Wales. It has 11 trading divisions or subsidiaries based in the
United Kingdom.
BP PLC: Agrees to Earmark US$20 Billion for Oil Spill Claims
------------------------------------------------------------
Top executives at BP Plc were summoned to the White House
Wednesday morning for a meeting with U.S. President Barrack Obama
to discuss the president's demand that BP set aside funds in an
independently administered escrow account to pay claims stemming
from the Gulf of Mexico oil spill.
Jonathan Weisman, Jared A. Favole and Monica Langley at The Wall
Street Journal report that President Obama, after emerging from
the meeting, said BP will put US$20 billion into an independently
administered fund to help pay for claims as a result of the Gulf
oil disaster.
The Journal also relates BP Chairman Carl-Henric Svanberg said
after the meeting that the company wouldn't pay further dividends
this year and will look after the people of the Gulf coast. He
said he wanted to apologize to those affected by an oil disaster
he acknowledged should have never happened. He said the company
would do its own probe of what caused the catastrophe.
Helene Cooper and Jackie Calmes at The New York Times earlier
reported that lawyers at the White House and for BP have been
negotiating for days about an escrow account. While Mr. Obama has
not put a figure on the account, Senate Democrats have called for
US$20 billion, according to the New York Times.
According to the Journal, Mr. Obama called the meeting
"constructive" and said BP voluntarily agreed to set aside an
additional US$100 million for workers who lost their jobs as a
result of a deep-water drilling moratorium.
The Journal further relates Mr. Obama said the US$20 billion is
not a cap, and added that BP will pay the full costs of the
cleanup including environmental damage.
According to the Journal, the fund would be overseen by Kenneth
Feinberg. Mr. Feinberg is currently the U.S. government's pay
czar, a role in which he butted heads with financial executives
over their pay packages under the financial-industry rescue plan
in 2009. He also oversaw the federal government's compensation
fund for victims of the Sept. 11, 2001, terrorist attacks.
According to the Troubled Company Reporter on June 11, 2010, The
Wall Street Journal's Amy Schatz and Guy Chazan reported that
White House officials on Sunday said they wanted BP to put
"substantial" funds into an escrow account to cover claims by Gulf
Coast businesses and residents affected by the oil spill.
BP said on June 14 the cost of the response to date amounts to
approximately US$1.6 billion, including the cost of the spill
response, containment, relief well drilling, grants to the Gulf
states, claims paid, and federal costs. This includes new grants
of US$25 million each to the states of Florida, Alabama and
Mississippi and the first US$60 million in funds for the Louisiana
barrier islands construction project. BP said it is too early to
quantify other potential costs and liabilities associated with the
incident.
According Dow Jones Newswires' Selina Williams, one analyst
estimated Friday that the ultimate figure would be between
US$3 billion and US$6 billion.
According to BP, more than 51,000 claims have been submitted to
date, and more than 26,500 payments have been made, totaling over
US$62 million.
The WSJ report drew comparisons of the BP fund with those of trust
funds set up with court approval by Johns Manville Corp. and later
other companies with asbestos liabilities. The report says those
asbestos trusts now oversee about US$20 billion in assets, a sum
that has nearly tripled since 2005, consultants say.
Chapter 11 or Receivership Seen
As reported by the Troubled Company Reporter on June 10, 2010,
Tennille Tracy at Dow Jones Newswires said energy specialist Matt
Simmons, founder and chairman emeritus of Simmons & Co., has told
Fortune magazine that BP Plc has "about a month before they
declare Chapter 11."
According to the TCR, Jeff Plungis and Christopher Condon at
Bloomberg's Businessweek reported that Representative Steve Cohen,
a Tennessee Democrat, said because BP is likely to end up in
bankruptcy, the Obama administration should consider placing the
company in receivership to preserve company assets. "The
president could put it in receivership to protect the people," Mr.
Cohen said.
The TCR also cited Businessweek, which said more than 40 U.S.
lawmakers on June 9 called for BP to suspend its dividend, stop
its advertising and spend the money instead cleaning up its oil
spill in the Gulf of Mexico. Businessweek said a dividend
moratorium would hit BP shareholders led by BlackRock Inc. and
Legal & General Group Plc. According to Bloomberg data drawn from
regulatory filings, New York-based BlackRock was the biggest
holder of BP shares, with 5.92% as of December 31, 2009.
Bloomberg said Legal & General Group, the U.K. insurer and money
manager, holds 4% of the shares as of May 4.
About BP Plc
BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.
Bloomberg's Businessweek notes BP represents 5.6% of the FTSE 100
Index, the second biggest weighting of the top U.K.-listed
companies behind London-based bank HSBC Holdings Plc. BP also
represents the biggest portion of the FTSE 350 Oil & Gas Producers
Index at 31%, and the MSCI EAFE/Energy Index at 16%.
BP PLC: Brazil Reviews Firm's Purchase of Devon Energy Assets
-------------------------------------------------------------
Brazil's oil-industry regulator Agencia Nacional do Petroleo is
reviewing BP Plc's US$7 billion agreement to buy Devon Energy
Corp.'s deep-water assets, Alan Purkiss at Bloomberg News reports
citing London-based Times. The report relates the local regulator
told the newspaper that the transaction is being examined and no
decision has yet been taken on whether to approve it.
Agencia Nacional do Petroleo grants licenses and supervises safety
in the Brazilian oil industry.
According to the report, the purchase of Devon Energy assets in
Brazil's Campos and Camamu-Almada basins as well as two onshore
licenses in the Parnaiba basin was announced on March 11. The
report relates the newspaper said that regulator head Magda
Chambriard and Raphael Moura, the official responsible for safety
issues, will meet with BP in Houston for talks on the Deepwater
Horizon catastrophe in the Gulf of Mexico.
The report notes the Times said that spokesmen for both BP and
Devon said there's no indication that permission for the
transaction, which also includes assets in the Gulf of Mexico and
Azerbaijan, will be withheld.
About BP Plc
BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.
* * *
As reported by the Troubled Company Reporter on June 10, 2010,
Tennille Tracy at Dow Jones Newswires said energy specialist Matt
Simmons, founder and chairman emeritus of Simmons & Co., has told
Fortune magazine that BP Plc has "about a month before they
declare Chapter 11."
KERLING PLC: S&P Raises Corporate Credit Rating to 'B'
------------------------------------------------------
Standard & Poor's Ratings Services said that it raised to 'B' from
'B-' its long-term corporate credit rating on U.K.-based PVC
producer Kerling PLC, following a similar action on sister-company
Ineos Group Holdings PLC. At the same time, S&P removed all
ratings from CreditWatch where they had been placed on April 30,
2010. The outlook is stable.
Mirroring the one-notch upgrade on the corporate credit rating,
S&P has raised the issue ratings on the GBP100 million senior
secured revolving credit facility to 'BB-' from 'B+', and the
issue ratings on the GBP785 million senior secured fixed-rate
notes to 'B' from 'B-'. The respective recovery ratings remain
unchanged at '1' and '3'.
"The rating on Kerling reflects its highly leveraged financial
risk profile and fair business risk profile," said Standard &
Poor's credit analyst Lucas Sevenin.
Kerling reported sales of GBP1.7 billion in 2009 and an EBITDA of
about GBP175 million, translating into a 10% margin.
LEHMAN BROTHERS: Administrators Unveil Claims Determination Plan
----------------------------------------------------------------
The Joint Administrators of Lehman Brothers International (Europe)
on Wednesday issued a notice of their current plans to unsecured
creditors which, if implemented, could see the time in which
unsecured claims are determined and distributions made materially
shortened.
The proposal, referred to as the "Consensual Approach", will
involve LBIE determining the claim value of each financial trading
creditor using a standard comprehensive set of processes, data
sources and valuation methods, all subject to comprehensive review
and universally applied to all relevant unsecured creditors.
The Consensual Approach could enable the Joint Administrators to
agree the majority of the value of unsecured creditor claims by
the year end and pave the way for the first cash distribution in
2011. The Joint Administrators currently hold net cash of
approximately GBP7.3 billion.
Steven Pearson, joint administrator and partner at
PricewaterhouseCoopers LLP, said: "We are very pleased to be able
to announce our proposed solution for the determination of
unsecured creditor claims. The Consensual Approach is an
innovative mechanism which will enable the claims to be determined
in an expeditious manner, resulting in significant time and cost
savings to both unsecured creditors and LBIE. Further, the timing
at which cash distributions can be made will be accelerated
materially."
The Consensual Approach is entirely dependant upon the willingness
of the overwhelming majority of financial trading counterparties
to support the process. In the short term, the Joint
Administrators will be opening a dialogue with a number of
financial trading counterparties with regard to their claims and
seeking their support in order to establish the feasibility of the
proposal.
Mr. Pearson continued: "We have taken soundings from the market
and been in active dialogue with a working group including members
of the Creditors' Committee in order to develop this proposal in a
collaborative manner. Last year we successfully launched the
Claim Resolution Agreement for progressing the return of Trust
Assets to clients. That was an innovative solution to a difficult
problem and we are committed to finding an equivalent solution for
the rapid determination of creditor claims that is fair, market
acceptable and pragmatic. We believe the Consensual Approach,
with the support of creditors, will prove to be that solution."
If the initial feedback to this announcement is positive and the
Joint Administrators and creditor working group conclude that the
Consensual Approach is feasible and will attract the necessary
support, then it is likely that meetings will be hosted in London
and New York in due course to further outline the proposal such
that the Consensual Approach could potentially be launched in the
autumn.
Mr. Pearson concluded: "Clearly our timetable needs to be flexible
but whilst the Consensual Approach will be an innovative way to
determine creditor claims, we are optimistic that we can gain
significant support to enable this proposal to become a reality.
The conventional alternative process to determining claims using
our powers under the Insolvency Act is likely to mean the exercise
will be expensive and take many years and that cannot be in
anybody's interest."
Tony Lomas, Mr. Pearson, Dan Schwarzmann and Mike Jervis, partners
at PricewaterhouseCoopers LLP, were appointed as joint
administrators to Lehman Brothers International Europe and other
related entities on September 15, 2008. By an Order made on
November 30, 2009 in the High Court, a change was made to the
named individuals appointed as Administrators of the Lehman
Brothers companies in English Administration. With effect from
November 30, the same five PwC partners are the Administrators of
all 19 companies; the five are Mr. Lomas, Mr. Pearson, Mr.
Schwarzmann, Mr. Jervis and Derek Howell, all of whom are licensed
to act as insolvency practitioners by the Institute of Chartered
Accountants in England and Wales.
R AND H: Liquidation Won't Affect Autumn 10 Deliveries
------------------------------------------------------
Eve Oxberry at Drapers reports that De Keyser's autumn 10
deliveries will not be affected by the liquidation of part of the
business.
The report recalls owner Robert De Keyser placed his young fashion
and contemporary brands distribution and retail division, R and H
De Keyser, into liquidation in May.
According to the report, De Keyser, who set up the two separate
trading companies in September following the pre-pack
administration of his De Keyser Fashions business, said that the
closure of the R and H De Keyser business, which comprised the
retail and distribution of brands including Evil, Faith, Phard and
Victoria Couture in the UK, has led to the closure of seven stores
and a small number of department store concessions.
The final multi-brand concession in Harrods will cease trading in
July, the report notes.
"The contemporary [and young fashion] brands were performing
badly, as was the retail division. We decided we couldn't
continue with both arms of the business. We had to focus on one
thing and will continue as a classic womenswear distributor," the
report quoted Mr. De Keyser as saying.
The report relates Mr. De Keyser said the classic womenswear
brands continued to trade well, with autumn 10 order books up by
30% on average compared with autumn 09.
De Keyser is a womenswear distributor.
MCCORMICK MACNAUGHTON: In Administration; 56 Jobs at Risk
---------------------------------------------------------
Margaret Canning at Belfast Telegraph reports McCormick
MacNaughton (NI) Ltd. has gone into administration, putting more
than 50 jobs in Lisburn at risk.
The report relates the company's directors appointed
PricewaterhouseCoopers as administrator on Monday.
According to the report, difficulties in the company developed
after a major expansion in the Republic of Ireland shortly before
the massive downturn in construction.
McCormick MacNaughton (NI) Ltd. is based at Blaris Industrial
Estate. The company is the sole distributor of Caterpillar
construction equipment in Northern Ireland. It employs 56 people.
PARITY TRAINING: Goes Into Administration
-----------------------------------------
The Board of Parity Group plc has been informed that its previous
subsidiary, Parity Training, has gone into administration. The
business was sold to ECS Limited in February 2009. There is no
trading relationship between the Group and Parity Training.
The Board is investigating whether the Group has any exposure
under the terms of the original disposal agreement and will, if
necessary, provide an update to shareholders in due course.
REFUGEE AND MIGRANT: Cash-Flow Problem Prompts Administration
-------------------------------------------------------------
BBC News reports that Refugee and Migrant Justice has gone into
administration because of a cash-flow problem caused by changes to
the legal aid system.
According to BBC, under the new rules, bills are not finally
settled until cases are completed. BBC notes RMJ said it was owed
almost GBP2 million and had been left waiting up to two years for
payments on the most complicated cases. BBC relates it had sought
bridging loans while it waited for the payments, but had no assets
to offer as security to commercial lenders.
Set up in 1992 as the Refugee Legal Centre, Refugee and Migrant
Justice is the UK's largest specialist provider of legal
assistance to asylum seekers and other vulnerable migrants.
The legal charity employs more than 300 specialist staff
representing some of the most complex immigration cases in the UK,
according to BBC.
ST. MARGARET'S: Parents Set Two-Week Deadline to Rescue School
--------------------------------------------------------------
BBC News reports that parents have set themselves a two-week
deadline to save St. Margaret's school from closure. BBC relates
a group of families with children at the school talked with the
receivers KPMG on Monday.
"We have to think we can get the GBP2 million by the end of term
on June 29. Since we received the news on Thursday we have all
been working 24 hours a day to come up with a viable and
sustainable business plan," Lisa Ahmed, vice chairwoman of St
Margaret's Parent and Friends Association, told the BBC Scotland
news website, according to the report.
"We set up a bank account and we have been appealing for white
knights to give us money towards saving the school.
"I received a call from the parent of a former pupil who pledged
GBP10,000 because she said the school must not close.
"At Monday night's meeting, which lasted about 90 minutes, four
liquidators were present, including Blair Nimmo, and it was as
amicable as it could be.
"KPMG is very aware that we are deadly serious and that our heads
are not in the clouds.
"Just because the business was mismanaged doesn't mean it should
affect the pupils."
"We had a very helpful meeting with the consortium last night
(Monday). We provided them with further information and an
explanation of the process," the report quoted Blair Nimmo, of
KPMG, as saying. "As we understand it they have gone off to
consider their position with a view to seeing if they can come up
with a plan."
On June 15, 2010, the Troubled Company Reporter-Europe, citing
Edinburgh Evening News, reported that that parents have launched a
bid to take over St. Margaret's. Edinburgh Evening News said a
consortium of ten families hope to rescue the school. Edinburgh
Evening News disclosed the group, which includes experts in
banking, property and marketing, have put together a business plan
which involves finding GBP2 million to pay off creditors.
As reported by the Troubled Company Reporter-Europe on June 14,
2010, Blair Nimmo of KPMG was appointed Provisional Liquidator of
St Margaret's School (Edinburgh) Limited and of its 100%
subsidiary St Hilary's House Limited on June 10, 2010.
The Edinburgh-based School, which has charitable status and was
incorporated in 1960, provides private education for girls at
nursery, primary and secondary level (from 18 months to 18-years-
old) and for boys at nursery and primary level (from 18 months to
10-years-old).
St Hilary's provides boarding facilities during term and operates
as a hotel and youth hostel during the School holidays.
The School has been affected by a sustained decline in pupil
numbers over recent years and despite actions taken by the Board
of Governors, the School could not continue to operate viably.
At the time of the Provisional Liquidator's appointment the School
and nursery comprised 397 pupils and 143 staff (69 teaching and 74
non-teaching).
The School and nursery will continue to operate and provide its
services under the Provisional Liquidator's supervision through to
the end of term (June 29, 2010). The School and nursery will
close on June 29, 2010.
WHERRY HOTEL: Bought Out of Administration
------------------------------------------
EDP24 reports that the Wherry Hotel at Oulton Broad, near
Lowestoft, and the Duke's Head Hotel in King's Lynn, have been
sold. The report recalls the two hotels were both part of the
Elizabeth Hotels chain, which went into administration in December
last year.
According to the report, administrators KPMG are hopeful that
discussions regarding the remaining properties in the portfolio
will be successful.
"I can confirm that the Wherry has now been sold, it was sold at
the beginning of June. We also sold the Duke's Head in King's
Lynn last week," the report quoted a spokesman for KPMG as saying.
* Refinancing Risk A Threat to Credit Quality in Europe, Says S&P
-----------------------------------------------------------------
Standard & Poor's Ratings Services believes that European
speculative-grade companies still have some way to go to tackle
the 'wall of refinancing' they face, following the recent stalling
of the speculative-grade bond market, according to a report
published June 16 on RatingsDirect titled "Refinancing Risk
Remains The Main Threat To The Credit Quality Of European
Speculative-Grade Companies."
For European speculative-grade companies (those rated 'BB+' and
below) refinancing risk looms large in the next few years, despite
the fact that over the past year such companies have repaid about
EUR12 billion of bank debt with speculative-grade bonds.
In recent weeks, a robust speculative-grade bond market in Europe
has suddenly stalled. Before the recent market uncertainty,
however, the volume of Western European speculative-grade debt
issuance reached approximately EUR19.0 billion by April 30, 2010,
compared with EUR24.5 billion in the whole of 2009. In S&P's
view, the issuance has offered potential financing options and
improved financial flexibility for speculative-grade issuers. The
speculative-grade market had begun to make a dent in the
refinancing risk that such companies in Europe have been facing.
However, the story is far from over. There remains a substantial
amount of refinancing needs from leveraged buyouts (LBOs). The
bulk of this comes due in 2014 and 2015, as many of the companies
were financed at the peak of the bull market in 2006 and 2007,
mostly with maturities of seven to nine years.
Standard & Poor's European Leveraged Loan Index (ELLI) shows
EUR37 billion coming due in 2014 and EUR49 billion in 2015.
Without a strong economic recovery that enables companies that are
facing refinancing risk to generate sustainable free cash flow, or
an equity injection from shareholders to pay down balance-sheet
debt, it is most likely that companies will need to write down a
portion of their debt to achieve more sustainable capital
structures. This supports S&Ps view that default rates will
stay well above the 4% average reported over the course of this
cycle in the European leveraged finance market, reaching 8.7% by
the end of the year. Corporate credit has been a "sweet spot" in
Europe as investors at this stage of the economic recovery have
been buying longer-duration, higher-yielding credit instruments
for the past six months.
But it is not yet clear how long the current market disruption,
which began in April, will last. The extent of the economic
recovery--and the amount of cash that speculative-grade companies
are able to generate for deleveraging--will play a big role in
determining how much debt companies will need to refinance
from 2012 onward.
Another part of the equation will be the level of willingness of
new or existing investors to invest new equity into companies.
Any such equity injections would likely be positive for companies
in Europe because they would, in S&P's view, restore confidence in
the growth potential of highly leveraged European companies.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/booksto order any title today.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. 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 * * *