/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100809.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, August 9, 2010, Vol. 11, No. 155 Headlines D E N M A R K * DENMARK: Deloitte Sees More Bankruptcies in Retail Fashion F R A N C E SIRF CAPITAL: Fitch Lowers Rating on Primary Facility to 'D' G E R M A N Y ALMATIS BV: DIC Plan Deal Gets U.S. OK; Oaktree Steps Aside ARCANDOR AG: Karstadt Creditors Reject Borletti's Takeover Offer GENERAL MOTORS: Opel to Offer Unlimited Warranty on New Cars G R E E C E WIND HELLAS: Reviews Investment Offers Amid Debt Restructuring I C E L A N D GLITNIR BANK: DekaBank Wants Sigfusson to Withdraw "Wager" Remark I R E L A N D CEDO PLC: Moody's Cuts Ratings on Five Classes of Notes to 'C' PREPS 2006-1: Moody's Reviews Ratings on Four Classes of Notes QUINN INSURANCE: Subsidiaries Likely to Be Sold Off Separately WARNER CHILCOTT: Moody's Assigns Ba3 Rating on US$1.5 Bil. Loan WARNER CHILCOTT: S&P Affirms Corporate Credit Rating at 'BB' L U X E M B O U R G BOZEL SA: Has Plan Filing Exclusivity Until December 2 N E T H E R L A N D S DSB BANK: Trichet Says Criticism of Wellink's Role Is Unfair NXP SEMICONDUCTORS: Cuts IPO Share Price to US$14 UPC HOLDING: Moody's Assigns 'B2' Rating on EUR640 Mil. Notes UPC HOLDING: S&P Assigns 'B-' Rating on EUR640 Mil. Notes N O R W A Y * NORWAY: Corporate Bankruptcies Down 17% in 2nd Quarter 2010 R U S S I A GAZENERGORPOMBANK ZAO: Moody's Withdraws 'E+' Bank Strength Rating S L O V E N I A CENTER NALOZBE: To Go Into Receivership; Debt Settlement Fails S P A I N ARLO LTD: S&P Withdraws CCC Ratings on Five Classes of Notes FONCAIXA EMPRESAS: S&P Withdraws 'BB' Rating on Class C Notes U N I T E D K I N G D O M AEOLUS CDO: Fitch Downgrades Ratings on Series 2005-3 Notes to D BAKED SNACK: In Administration Following Staff Pay Dispute CATTLES PLC: Fitch Affirms Issuer Default Rating at 'C' CPI RETAIL: Goes Into Receivership DECO 12: Fitch Cuts Ratings on Two Classes of Notes to 'CC' IMPERIAL CONSOLIDATED: Former Director Godley Jailed for Fraud LEGION GROUP: Appoints MCR as Administrators MODUS PROPERTIES: Creditors Back CVA; Firm Exits Administration MRS DISTRIBUTION: Faces Administration; Up to 275 Jobs at Risk PORTSMOUTH FOOTBALL: CVA Can Proceed, High Court Rules ROSETTA I: S&P Downgrades Ratings on Class B & C Notes ST URSULA'S: Parents May Launch Rescue Campaign UK HOUSING: In Administration; Tenants May Face Losses VIRGIN MEDIA: Fitch Affirms Issuer Default Rating at 'BB' WRAPIT PLC: Directors Disqualified Following Probe * UK: Company Liquidations Up 0.5% to 4,080 in 2nd Qtr. 2010 X X X X X X X X * BOND PRICING: For the Week August 2 to August 6, 2010 ********* ============= D E N M A R K ============= * DENMARK: Deloitte Sees More Bankruptcies in Retail Fashion ------------------------------------------------------------ Christian Wienberg and Gelu Sulugiuc at Bloomberg News, citing Deloitte LLP, report that Denmark's retail fashion industry will suffer more bankruptcies, making room for takeovers led by some of the country's biggest clothing companies. Bloomberg relates Deloitte said in a report published by e-mail Thursday that one out of three Danish retailers may be forced to close after the financial crisis left their businesses unprofitable. Bloomberg notes data from Statistics Denmark show retail sales at the Nordic country's clothes stores fell 6.7% in June compared with the same period in 2008. According to Bloomberg, Statistics Denmark said Thursday that there was a total of 548 bankruptcies in July, a record for the year and more than three times as many as in 2006. =========== F R A N C E =========== SIRF CAPITAL: Fitch Lowers Rating on Primary Facility to 'D' ------------------------------------------------------------ Fitch Ratings has downgraded SIRF Capital 3 Limited's EUR50 million primary liquidity facility due 2014 to 'D' from 'C'. The noteholders voted to terminate the transaction on 18 June 2010. The noteholders received recovery of approximately 3% of the initial principal balance of EUR50 million. In Fitch's view, even if the noteholders held the notes until scheduled maturity, the transaction would have defaulted. The credit enhancement of 0.45% would not have been able to absorb the losses in the reference portfolio, 62% of which Fitch considered as non- investment grade structured finance assets. This transaction was a liquidity facility agreement between SIRF 3, a special purpose vehicle, and Calyon, the facility lender. The rating of the liquidity facility was linked to the credit quality of a EUR910 million portfolio, which synthetically referenced structured finance assets. ============= G E R M A N Y ============= ALMATIS BV: DIC Plan Deal Gets U.S. OK; Oaktree Steps Aside ----------------------------------------------------------- Almatis B.V. won approval from the U.S. Bankruptcy Court for the Southern District of New York to enter into a plan support agreement on a revised restructuring proposal arranged by its owner, Dubai International Capital LLC. The Plan Support Agreement paves the way for Almatis to withdraw the prepackaged restructuring plan proposed by Oaktree Capital Management L.P. that pays senior creditors somewhere in the 85% range and junior creditors hardly anything. Almatis is set to file later this week a disclosure statement, which provides a detailed description of the revised restructuring plan backed by a DIC-led refinancing. The refinancing would help fully repay Almatis' senior lenders and would allow its junior lenders to recover more than under the original Oaktree-sponsored prepackaged plan. Funding for the revised plan will come from a US$100 million equity contribution that DIC has already escrowed with JP Morgan. A consortium composed of JP Morgan, Bank of America Merrill, GSO Capital Partners, GoldenTree Asset Management and Sankaty Credit Opportunities IV will also provide about US$600 million of debt financing for the revised plan. The revised plan has the support of DIC and a group of mezzanine, junior mezzanine and second lien lenders. Oaktree Capital, which owns 46% of Almatis' senior debt, has lately agreed to support the revised plan. Oaktree Capital earlier opposed the approval of the Plan Support Agreement, questioning the feasibility of the revised plan, DIC's financial condition, and DIC's reputation of making promises concerning proposals that it could not deliver. Oaktree Capital eventually dropped its objection after it proposed a settlement to Almatis, according to an August 3, 2010 report by Reuters. The proposed settlement is subject to approval by the Bankruptcy Court presiding over Almatis' Chapter 11 cases. Bankruptcy Judge Martin Glenn has scheduled a hearing for August 23, 2010, to consider approval of the disclosure statement and the settlement with Oaktree Capital. "We are confident that the refinancing implemented by the new plan is in the interests of all stakeholders including employees, customers, lenders and other business partners," Almatis Chief Executive Remco de Jong said in an August 3, 2010 statement. "We remain committed to concluding the Chapter 11 process as quickly as possible and look forward to pursuing growth opportunities with the support of our shareholders in the near future," Mr. de Jong said. Almatis anticipates the confirmation of the revised restructuring plan in late September. "We are delighted to have secured a fully committed refinancing of the Almatis Group, ending the uncertainty that the business and its stakeholders have faced over the past 18 months and bringing a positive conclusion to the Chapter 11 process," DIC Chief Executive Anand Krishnan said in an e-mailed statement, according to Bloomberg News. "All stakeholders now support a smooth refinancing process, which benefits all parties and the focus of attention will once more be Almatis' customers, employees and suppliers," Mr. Krishnan said. While the revised restructuring plan is being considered by the Bankruptcy Court, the court approval that enables Almatis to continue to operate in the ordinary course of business remains in place. This includes the approval to use the company's cash to continue to pay salaries and benefits, and to pay its suppliers. Aside from its entry into the Plan Support Agreement, Almatis was also authorized to execute various commitment letters governing the refinancing and equity contribution for the implementation of the revised plan, and to enter into currency rate hedging transactions. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ARCANDOR AG: Karstadt Creditors Reject Borletti's Takeover Offer ---------------------------------------------------------------- Karstadt AG's creditor committee on Thursday rejected opening talks with Maurizio Borletti on selling the insolvent German retailer, Tony Czuczka at Bloomberg News reports, citing Thomas Schulz, a spokesman for the committee. According to Bloomberg, Mr. Schulz said in an interview the committee considered Mr. Borletti's request and "concluded there's no sense in parallel negotiations" with him while talks are under way with Berggruen Holdings Ltd. As reported by the Troubled Company Reporter-Europe on Aug. 4, 2010, Bloomberg News said Mr. Borletti, the owner of Italy's La Rinascente and France's Printemps department stores, made an approach for Karstadt. Bloomberg disclosed Mr. Borletti said in a telephone interview that he submitted the offer, worth EUR100 million (US$131.8 million) on July 29 to administrator Klaus Hubert Goerg. Mr. Borletti, as cited by Bloomberg, said U.S. retail liquidator Gordon Brothers Group LLC will finance the deal. Bloomberg noted Mr. Borletti said he would like his offer to be considered if Berggruen fails, as a "breakup is no alternative." The Italian entrepreneur said he won't take any money out of Karstadt within the next five years, according to Bloomberg. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. As reported by the Troubled Company Reporter-Europe, a local court in Essen formally opened insolvency proceedings for Arcandor on September 1, 2009. The proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state- owned bank. GENERAL MOTORS: Opel to Offer Unlimited Warranty on New Cars ------------------------------------------------------------ Andreas Cremer at Bloomberg News reports that General Motors Co.'s Opel brand will offer warranties on all new cars up to 160,000 kilometers (99,200 miles) without any time limits as the carmaker seeks to attract buyers to stem declining sales. According to Bloomberg, Ruesselsheim, Germany-based Adam Opel GmbH said Thursday in an e-mailed statement that the warranty is effective immediately and covers mechanical components such as the engine, gearbox, electronics, and cooling systems. Uncertainty surrounding the future of Opel contributed to a 40% sales slump in Germany through July even after rolling out a new version of its best-selling Astra compact last year, Bloomberg notes. Bloomberg recalls GM decided in June to fund Opel's EUR3.3 billion (US$4.3 billion) restructuring itself, after failing to secure aid from European countries. 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 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. General Motors Ventures, LLC, was funded with an initial investment of $100 million, and is currently exploring equity investments in a number of auto-related technologies and business models. 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). =========== G R E E C E =========== WIND HELLAS: Reviews Investment Offers Amid Debt Restructuring -------------------------------------------------------------- Global Insolvency, citing Dow Jones Daily Bankruptcy Review, reports that Wind Hellas is reviewing initial offers for the group as it restructures its debt for the second time in eight months. According to the report, the company said in a statement released Monday last week that it has received preliminary expressions of interest in the group. The report relates the company, suffering under the Greek government's austerity measures, said it would consider a sale or investment offer as part of its restructuring. The report says potential investors have until Sept. 15 to make a binding offer for the company. Morgan Stanley, the group's financial adviser, will now offer some of the interested parties the right to undertake due diligence, the report discloses. About WIND Hellas Headquartered in Athens, Greece, WIND Hellas Telecommunications S.A. -- http://www.wind.com.gr/-- provides mobile voice and data services to about 6 million consumer and business customers throughout Greece. The company enables international roaming in 155 countries for travelling subscribers through agreements with other carriers. It also provides cellular and satellite-based vehicle management and tracking services. WIND Hellas is owned by investment firm Weather Investments, a company led by Cairo-based Orascom Telecom's founder and chairman, Naguib Sawiris. * * * As reported by the Troubled Company Reporter-Europe on July 7, 2010, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit ratings on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'SD' from 'CC'. S&P said the downgrade to 'SD' (selective default) mainly reflects the group's agreement with some of its lenders to defer until Nov. 5, 2010, under the terms of the standstill agreement, a EUR17.5 million amortization payment under its RCF and payments due on July 15, 2010 relating to hedging contracts. The downgrade also reflects S&P's view that the group's capital structure has become unsustainable in the short to medium term, and consequently that WIND Hellas is highly likely to undergo a capital restructuring in the very short term, the second in about eight months. ============= I C E L A N D ============= GLITNIR BANK: DekaBank Wants Sigfusson to Withdraw "Wager" Remark ----------------------------------------------------------------- Omar R. Valdimarsson at Bloomberg News reports that DekaBank Deutsche Girozentrale, the third-biggest creditor in failed Glitnir Bank hf, wants Iceland's Finance Minister to retract remarks made last month equating their investments with a "wager" and telling them they're responsible for their losses. Bloomberg relates Frankfurt-based DekaBank sent a letter to the minister, Steingrimur Sigfusson, on July 13 calling on him to withdraw remarks made in a Bloomberg interview published July 8. Bloomberg notes Mr. Sigfusson said last month creditors knew what they were getting into when they converted part of their claims against the island's banks to equity in state-created successors to the failed lenders. Bloomberg says that equity may be at risk after a June 16 court ruling banned loans indexed to foreign currency rates, a move that may cost the island's financial system US$1.1 billion to US$4.3 billion, or a third of economic output, according to government estimates. Bloomberg couldn't reach Mr. Sigfusson for comment. Bloomberg adds DekaBank said a deal announced by the government last October that Glitnir creditors had agreed to take a 95% stake in its successor Islandsbanki is misleading. The bank says it, and other creditors, never agreed to become shareholders, Bloomberg discloses. "No vote from DekaBank, or among creditors in general, was taken and DekaBank was given only little opportunity to review the relevant material on the banks or express its opinion," the bank said in a letter dated Aug. 3. DekaBank creditors are owed ISK67.64 billion (US$573 million), Bloomberg says. About Glitnir Banki Headquartered in Reykjavik, Iceland, Glitnir banki hf -- http://www.glitnir.is/-- offers an array of financial services to corporation, financial institutions, investors and individuals. Iceland's government took control of Glitnir, along with two other financial institutions -- Landsbanki Islands hf and Kaupthing Bank hf -- after it failed to obtain short-term funding. The District Court of Reykjavik granted a Moratorium order on Glitnir on Nov. 24 2008. Glitnir said the Moratorium is not a bankruptcy proceeding and does not affect its banking licenses or its ability to operate as a bank. The Moratorium is a specialized proceeding under Icelandic law designed to provide it with appropriate global protection from legal action taken by its creditors, Glitnir pointed out. Steinunn Gudbjarsdottir, as the duly authorized foreign representative for Glitnir banki hf, sought creditor protection for the bank under Chapter 15 of the U.S. Bankruptcy Code on November 26, 2008 (Bankr. S.D.N.Y. Case No. 08-14757). According to Bloomberg, Glitnir's assets in the United States comprised of bank accounts and loan provided to U.S. companies. The company, Bloomberg citing papers filed with the Court, issued 22 short- and long-term notes for about US$7 billion in the country. Judge Stuart M. Bernstein presides over the case. Gary S. Lee, Esq., at Morrison & Foerster LLP in New York, serves as counsel to the foreign representative. The Chapter 15 petition estimated both assets and debts to be more than US$1 billion. On January 6, 2009, Judge Bernstein issued an order recognizing the bank's restructuring proceedings in Iceland. ============= I R E L A N D ============= CEDO PLC: Moody's Cuts Ratings on Five Classes of Notes to 'C' -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of these series of Equity Default Swap notes issued by CEDO PLC and EDELWEISS CAPITAL: Issuer: CEDO I plc -- Series 1 Tranche A EUR 65,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011, Downgraded to B2 (sf); previously on Jan. 21, 2009 Downgraded to Ba1 (sf) Issuer: CEDO Plc - Series CEDO II -- Series 2 Tranche K Non-Principal Protected Asset-Backed Fixed Rate Notes due 2011, Downgraded to C (sf); previously on Jan. 21, 2009 Downgraded to Caa3 (sf) Issuer: CEDO Plc - Series CEDO III -- Series 3 Tranche K Non-Principal Protected Asset-Backed Fixed Rate Notes due 2012, Downgraded to C (sf); previously on Jan. 21, 2009 Downgraded to Caa3 (sf) Issuer: CEDO PLC - Series 4 -- Series 4 Tranche A EUR 73,100,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Ca (sf); previously on Jan. 21, 2009 Downgraded to B3 (sf) -- Series 4 Tranche B EUR 90,700,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Ca (sf); previously on Jan. 21, 2009 Downgraded to Caa1 (sf) -- Series 4 Tranche C EUR 11,200,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Ca (sf); previously on Jan. 21, 2009 Downgraded to Caa1 (sf) Issuer: CEDO PLC - Series 4 - CSAM -- Series 4 Tranche D EUR 73,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Caa1 (sf); previously on Jan. 21, 2009 Downgraded to B3 (sf) -- Series 4 Tranche E EUR 47,000,000 Asset Backed Deferrable Floating Rate Notes due 2012, Downgraded to Ca (sf); previously on May 20, 2009 Downgraded to Caa2 (sf) -- Series 4 Tranche K CHF 132,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Caa1 (sf); previously on Jan. 21, 2009 Downgraded to B3 (sf) -- Series 4 Tranche N USD 40,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012, Downgraded to Caa1 (sf); previously on Jan. 21, 2009 Downgraded to B3 (sf) Issuer: Edelweiss Capital Plc - Series 2007-1 -- Class A Series 2007-1 Asset-Backed Floating Rate Notes, Downgraded to C (sf); previously on Jan. 21, 2009 Downgraded to Caa1 (sf) -- Class B Series 2007-1 Asset-Backed Floating Rate Notes, Downgraded to C (sf); previously on Jan. 21, 2009 Downgraded to Caa2 (sf) Issuer: Edelweiss Capital plc - Series 2007-2 -- Class D US$ Series 2007-2 Asset-Backed Floating Rate Notes due 2013, Downgraded to C (sf); previously on Jan. 21, 2009 Downgraded to Caa2 (sf) -- Class A EUR Series 2007-2 Asset-Backed Floating Rate Notes due 2013, Downgraded to Ca (sf); previously on Jan. 21, 2009 Downgraded to Caa2 (sf) In addition, all the ratings of CEDO 1 PLC tranche A, CEDO PLC -- Series 4 tranches A,B and C, and CEDO 4 -- CSAM tranches E and K will be withdrawn shortly because the notes were bought back and terminated. Each of these synthetic CDOs refers to a portfolio of single-name EDS on large international corporations. Each portfolio comprises between 55 and 60 EDS in the so-called "Risk Portfolio", on which the SPV is protection seller, and the same number of EDS in the so-called "Insurance Portfolio", on which the SPV is protection buyer. At maturity of the transactions, the number of Net Equity Events (i.e. the difference in number of Equity Events in the Risk Portfolio and in the Insurance Portfolio) defines the amount of loss to be paid by the SPV to the protection buyer. An Equity Event (or hit) will be recorded if the stock price reaches its predefined trigger (typically 35% of the initial price level). For each hit one-tenth of notional is lost on the corresponding reference entity if the EDS is in the "Risk Portfolio" and recovered on the corresponding reference entity if the EDS is in the "Insurance Portfolio". Due to this EDS mechanism, losses can occur even if the reference entities do not default but only experience substantial stock price movements. Moody's says that the various rating actions taken on the seven transactions reflect its latest assessment of the evolution of the prices of the underlying stocks and the increase in the Net Equity Events ("net hits") realized to date. In particular, the downgrade to Ca or C of series CEDO Plc -- Series 2 Tranche K, CEDO Plc -- Series 3 Tranche K, CEDO Series 4 Tranche A, B, C, CEDO Series 4 -- CSAM Series E, Edelweiss Capital -- Series 2007-1 Tranche A and B and Edelweiss Capital Series 2007-2 Tranche A and D was driven by the consideration that the number of net hits realized to date is already partially or totally eroding the tranches' notionals. Moody's views any potential reversal of such erosions in the future as highly unlikely. With respect to series CEDO 1 PLC Tranche A and CEDO Series 4 -- CSAM Series D, K and N the realized net hits are still covered by the current credit enhancement. For series CEDO 1 PLC and CEDO 4 -- CSAM tranches D, K and N it would take an additional 2 and 28 net hits respectively to generate losses on the tranches assuming no changes in the price until maturity. These correspond to a move on each stock name of more than 22% and 7% respectively in the Insurance Portfolio and to more than 31% and 10% respectively in the Risk Portfolio. Moody's analyzed historical data of S&P 500 index and considered these movements to be consistent with a B2 and Caa1 probability of occurrence respectively. The difference between the moves contemplated in the Insurance Portfolio and in the Risk Portfolio results from a stress applied to account for the difference in volatility noticed in the portfolio between the Insurance Portfolio and the Risk Portfolio. Below is a general description of Moody's approach to reaching the rating decisions. First, for each transaction, at the portfolio level, the amount of net hits is calculated as the number of hits in the Risk Portfolio minus the number of hits in the Insurance Portfolio. The barrier is then calculated for the names outstanding. Second, for each tranche, the number of hits necessary to reach the attachment point is calculated as well as the number of hits required to reach the detachment point. Third, for price declines of each name in the total pool of 0%, 1%, 2%,, the number of hits accumulated is calculated. Two characteristic values of price declines are identified: i) the price declined needed to reach the attachment point, and ii) the price decline needed to reach the detachment point. Moody's accounts for the potential of the "Insurance Portfolio" to offset certain losses from the "Risk Portfolio". Finally, the probabilities of the identified price declines are derived from an analysis of historical S&P 500 return data from 1962 to 2010 by computing empirical return distributions. The return period is set to the maturity of the notes. PREPS 2006-1: Moody's Reviews Ratings on Four Classes of Notes -------------------------------------------------------------- Moody's Investors Service placed on review for downgrade its ratings of four classes of notes issued by Preps 2006-1 plc. Issuer: PREPS 2006-1 plc -- EUR238.1 million A1 Notes, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on May 21, 2009 Downgraded to Aa3 (sf) -- EUR0.9 million A2 Notes, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on May 21, 2009 Downgraded to Aa3 (sf) -- EUR40 million B1 Notes, B2 (sf) Placed Under Review for Possible Downgrade; previously on May 21, 2009 Downgraded to B2 (sf) -- EUR9 million B2 Notes, B2 (sf) Placed Under Review for Possible Downgrade; previously on May 21, 2009 Downgraded to B2 (sf) Preps 2006-1 is a European mezzanine finance CLO with a portfolio of subordinated loans to obligors predominantly located in Germany. The pool is concentrated with the five largest exposures comprising 22.2% of the pool. The transaction has suffered EUR51 million in defaults (15.9% of the initial pool), EUR6 million of which have occurred since the previous rating action as well as the recent delinquency of one issuer with a notional size of EUR5 million. The Principal Deficiency Ledger is currently EUR31.0 million, it was paid down by EUR3.2 million on the last payment date in July 2010. The remaining assets in the portfolio have also suffered credit deterioration, with 27.2%, compared to 17.2% when it was last actioned by Moody's, of the outstanding portfolio now estimated to be Ba1 or below by the Riskcalc model used to assess the assets as per the investor report dated 18 July 2010. The action relies on financial data received annually for a majority of obligors in the pool from the end of 2008. This financial data is used by Moody's in order to assess the credit quality of obligors in the pool, relying on RiskCalc, an econometric model developed by Moody's KMV. The results obtained from the Riskcalc model have been translated to Moody's rating scale and adjusted by one notch where necessary in order to compensate for the absence of credit indicators such as rating reviews, outlooks and adjustments factoring in cyclical developments in the economy. Moody's has placed this transaction under review for possible downgrade in response to the emergence of a delinquent issuer, with a notional of five million, as well as credit migration in the underlying pool. This review will be concluded once the credit assessments on the underlying pool have been updated with obligor financial statements from 2009. Moody's also incorporated information provided by the manager in the latest investor report to account for more recent information on the performance of the underlying obligors. Furthermore, various additional scenarios have been considered for the analysis and include the application of stresses applicable to concentrated pools with non publicly rated issuers, as outlined in Moody's Methodology, "Updated approach to the usage of credit estimates in rated transactions" (October 2009). The deal was modeled using CDOROM 2.6 to simulate default scenarios that were then used as inputs in a cash flow model. QUINN INSURANCE: Subsidiaries Likely to Be Sold Off Separately -------------------------------------------------------------- The non-insurance subsidiary companies of Quinn Insurance -- which could be worth up to half a billion euro -- could be sold off as separate entities, Suzanne Lynch at The Irish Times reports, citing the company's administrators. The report relates the development comes on the back of an overhaul of the board membership of various subsidiaries of Quinn Insurance which have seen Quinn family members exit the board and administrators Paul McCann and Michael McAteer appointed in their place. Quinn Insurance is the 100% shareholder of 25 companies, the report discloses. According to the report, latest accounts for Quinn Group -- the parent company of Quinn Insurance -- show the value of the company's non-financial insurance assets was EUR585 million as of December 31, 2008. The administrators are now directors of all 25 Quinn Insurance subsidiaries, the report states. The report notes the administrators said any potential purchaser of Quinn Insurance has the right to acquire some or all of the subsidiaries of Quinn Insurance, as all 25 of the Quinn Insurance subsidiaries are included in its assets. The report relates Collette Quinn, daughter of Sean Quinn, and Kevin Lunney, a senior executive at Quinn Group, have resigned as directors of Quinn Property Holdings, Quinn Hotels, Quinn Iveagh Fitness Ltd., Quinn Windfarm Ltd., Quinn Public Houses and Quinn Logistics. Sean Quinn and Kevin Lunney have also resigned from Quinn Direct Properties, the report says. The report notes that while the removal of Quinn family members from the board of Quinn Insurance-controlled companies cements a distance between the Quinn family and the companies, it could aid any future bid by the family for the companies. Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and his family. The company has more than 20% of the motor and health insurance market in Ireland. Employing almost 2,800 people in Britain and Ireland, it was founded in 1996 and entered the UK market in 2004. WARNER CHILCOTT: Moody's Assigns Ba3 Rating on US$1.5 Bil. Loan --------------------------------------------------------------- Moody's Investors Service assigned provisional ratings to the debt instruments proposed by Warner Chilcott plc. These include a rating of (P)Ba3 to the proposed new US$1.5 billion senior secured credit facilities of Warner Chilcott Company, LLC, and WC Luxco S.a r.l. (subsidiaries of Warner Chilcott plc), and a rating of (P)B3 to the proposed US$750 million senior unsecured bond offering of Warner Chilcott Company, LLC. There are no changes to the existing ratings of Warner Chilcott including the B1 Corporate Family Rating. Proceeds of the offerings are expected to be used for a special dividend payment of US$2.15 billion, announced on July 30, 2010. Completion of the offerings is subject to waivers from existing bank lenders. Moody's at times issues provisional ratings in advance of the final sale of securities and these reflect Moody's credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavor to assign a definitive rating to the different instruments. A definitive rating may differ from a provisional rating. The mixture of secured and unsecured debt in Warner Chilcott's capital structure may affect the ratings on the existing credit agreement and the provisional rating on the proposed credit agreement. At the conclusion of the financing transaction, Moody's anticipates making any necessary adjustments to the provisional ratings, as well as the rating on Warner Chilcott's existing bank credit facilities, currently rated B1. If the financing transaction is completed exactly as proposed, Moody's anticipates upgrading the rating on the existing credit agreement to Ba3, consistent with the rating on the proposed credit agreement. However, if the amount of unsecured bonds is reduced, the rating on the proposed new bank facilities may be lowered to B1. In this scenario the rating on the existing credit agreement would remain at B1. Warner Chilcott's B1 Corporate Family Rating primarily reflects Moody's view that pro forma Debt/EBITDA (which Moody's estimated at 3.7 times) remains within the expectations for Warner Chilcott's ratings. The B1 rating also reflects good free cash flow and the company's prior history of deleveraging. Risk factors included in the B1 rating include high product concentration risk, declining Actonel sales, an unresolved patent challenge on Asacol 400mg, and the company's appetite for leverage. The rating outlook is stable. In the future, positive rating pressure could occur based on steady operating progress including successful PGP integration, favorable execution of life cycle management plans and a disciplined approach to any additional acquisitions or shareholder-friendly strategies. Conversely, acquisitions or financial policies that result in leverage or cash flow to debt metrics below the high end of Moody's "B" ranges could create negative rating pressure. Ratings assigned: Warner Chilcott Company, LLC and WC Luxco S.a r.l. (Borrowers): * (P)Ba3 [LGD3, 41%] senior secured Term Loan A of US$500 million due 2014 * (P)Ba3 [LGD3, 41%] senior secured Term Loan B of US$1.0 billion due 2016 Warner Chilcott Company, LLC * (P)B3 [LGD6, 92%] senior unsecured notes of US$750 million Moody's last rating action on Warner Chilcott was an affirmation of the ratings on July 30, 2010, following the company's special dividend announcement. Headquartered in Ardee, Ireland, Warner Chilcott plc is a specialty pharmaceutical company currently focused on women's healthcare, gastroenterology, dermatology and urology. In 2009, the company reported total revenue of approximately US$1.4 billion. WARNER CHILCOTT: S&P Affirms Corporate Credit Rating at 'BB' ------------------------------------------------------------ Standard & Poor's Ratings Services said it affirmed its 'BB' corporate credit rating on Ireland-based specialty pharmaceutical company Warner Chilcott plc. At the same time, S&P lowered the issue-level rating on the existing senior secured credit facility issued by subsidiaries Warner Chilcott Co. LLC and Warner Chilcott Corp. to 'BB' from 'BB+' and revised the recovery rating to '3' from '2'. S&P also assigned a 'BB' issue-level rating and '3' recovery rating to WC Luxco S.a.r.l. and Warner Chilcott Co. LLC's proposed US$500 million term loan A due in 2014 and US$1 billion term loan B due in 2015. In addition, S&P assigned a 'B+' issue-level rating and a '6' recovery rating to Warner Chilcott Co. LLC's proposed US$750 million of senior unsecured notes due in 2018. "The speculative-grade rating on Warner Chilcott reflects S&P's expectation that the threat of generic competition to the company's product portfolio and its limited R&D capabilities will result in additional product or company acquisitions over the next one to two years," said Standard & Poor's credit analyst Michael G. Berrian. S&P also believe that, absent any acquisition opportunities, the company could instead increase leverage to pay another substantial dividend. "In S&P's view," added Mr. Berrian, "despite the demonstrated use of free operating cash flow to reduce leverage to less than 2x, demands to bolster its product portfolio or increase shareholder returns will likely not sustain that level of leverage over the next 18 to 24 months." Instead, pursuit of one of those strategies will likely keep leverage higher, at more than 3x, over that period. =================== L U X E M B O U R G =================== BOZEL SA: Has Plan Filing Exclusivity Until December 2 ------------------------------------------------------ The Hon. Arthur J. Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York extended Bozel S.A.'s exclusive periods to file and solicit acceptances for a Chapter 11 plan until December 2, 2010, and February 1, 2011, respectively. Luxembourg-based mineral mining company Bozel S.A. sought bankruptcy protection in New York under Chapter 11 of the U.S. Bankruptcy Code on April 6, 2010 (Bankr. S.D.N.Y. Case No. 10- 11802). In its petition, the Debtor estimated assets of US$50 million to US$100 million, and debts of US$10 million to US$50 million. William F. Savino, Esq., Daniel F. Brown, Esq., and Beth Ann Bivona, Esq., at Damon Morey LLP in Buffalo, N.Y., represent the Debtor. ===================== N E T H E R L A N D S ===================== DSB BANK: Trichet Says Criticism of Wellink's Role Is Unfair ------------------------------------------------------------ Jurjen van de Pol at Bloomberg News reports that European Central Bank President Jean-Claude Trichet said criticism in the Netherlands over Dutch Central Bank President Nout Wellink's role in the bankruptcy of DSB Bank NV was "extremely unfair and unjustified." As reported by the Troubled Company Reporter-Europe on July 2, 2010, a government-commissioned committee, as cited by Bloomberg, said that the Dutch central bank underestimated flaws in management at DSB when it granted the lender a banking license in 2005. The committee said in the years leading up to the collapse, the regulator didn't act forcefully enough, according to Bloomberg. On Oct. 20, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that the Amsterdam court on Oct. 19 declared DSB bankrupt after its owner failed to find a buyer. Bloomberg disclosed the Dutch central bank took control of DSB on Oct. 12 as an outflow of capital threatened the company's existence. DSB Bank -- http://www.dsbbank.com/-- is a fully licensed bank in the Netherlands, providing mortgages, consumer loans, savings and insurance products to retail clients. The bank has a leading market share in the Dutch market for consumer loans. DSB Bank also has operations in Belgium and Germany. DSB Bank, established in 1975, is privately owned by Dirk Scheringa, currently CEO of DSB Bank, Chairman of the Executive Management Board. Mr. Scheringa is also 100% owner of AZ Alkmaar football club, which plays in the Dutch Premier League and president of the Scheringa Museum for Magic Realism, an international collection of more than 500 works of art. NXP SEMICONDUCTORS: Cuts IPO Share Price to US$14 ------------------------------------------------- Richard Waters at The Financial Times reports that NXP Semiconductors slashed the price of its initial public offering on Thursday. According to the FT, KKR and Bain Capital, which led the 2006 buy- out, cut the price of the shares on offer to US$14 from the US$18- US$21 that had previously been indicated -- that reduced the amount raised from the deal to US$476 million. The FT says the sale of 14% of NXP's shares values the Dutch company at US$3.49 billion, some US$2 billion less than the company was worth in 2006, when Philips sold slightly more than 80% of the business. Funds from the IPO were earmarked to pay down part of NXP's US$5.2 billion in debt, the FT discloses. The company has racked up combined net losses of US$5.5 billion since the buy-out, the FT notes. NXP Semiconductors, headquartered in Eindhoven, Netherlands, is a a semiconductor company, focusing on the designs and manufacture of semiconductors for general applications, power management (Multi-Market) and application-specific integrated circuits for the electronics, automotive and identification technology application markets. * * * As reported by the Troubled Company Reporter-Europe on July 15, 2010, Moody's Investors Service upgraded the corporate family rating of NXP Semiconductors to Caa1 from Caa2, its senior secured debt rating to Caa1 and its senior unsecured debt rating to Caa3. Concurrently, Moody's assigned a Caa1, LGD4 (52%) to the senior secured notes due July 2018 launched. UPC HOLDING: Moody's Assigns 'B2' Rating on EUR640 Mil. Notes ------------------------------------------------------------- Moody's Investors Service has assigned a (P) B2 rating to the proposed issuance of EUR640 million of senior notes by UPC Holding B.V. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavor to assign a definitive rating to the Notes. A definitive rating may differ from a provisional rating. The assignment of the rating follows UPC's announcement to issue EUR640 million in senior notes due in 2020. The company intends to use the proceeds from these notes to purchase the outstanding EUR385 million of 7.75% senior notes and EUR231 million of 8.63% senior notes due 2014 pursuant to a tender offer and redeem and/ or otherwise retire any notes not tendered pursuant to the post- closing redemption. Moody's notes that the announced refinancing step will further improve the company's debt maturity profile. UPC's nearest material debt maturities will then be EUR203 million and EUR858 million of outstanding bank debt in 2013 and 2014 respectively (in addition to the Revolving Credit Facility due 2014 which is currently fully undrawn). The current Ba3 CFR for UPC reflects the company's largely resilient operating performance together with its consistent leverage policy of 4.0x Senior Debt to EBITDA (as defined by UPC) and 5.0x Total Debt to EBITDA. Moody's believes that due to UPC's diversification in the European markets and its strong triple-play offering, the company remains well positioned to weather the challenging economic and competitive environments. The ratings assume that the company continues to manage its debt well within a ratio of 5.5x for Debt/EBITDA (as defined by Moody's). The last rating action on UPC was on January 13, 2010, when Moody's had assigned a (P) Ba3 rating to the EUR500 million in senior secured notes due 2020 to be issued by UPCB Finance Limited. UPC is a pan-European cable provider, a principal subsidiary of Liberty Global Inc. In 2009, the company generated EUR3.45 billion in revenues and EUR1.66 billion in reported operating cash flow. UPC HOLDING: S&P Assigns 'B-' Rating on EUR640 Mil. Notes --------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B-' debt rating to the proposed EUR640 million subordinated notes (proposed notes) to be issued by UPC Holding B.V., the holding company of The Netherlands-based international cable-TV operator and broadband services provider UPC Broadband Holding B.V. (B+/Positive/--). At the same time, S&P assigned a recovery rating of '6' to the proposed notes, indicating S&P's expectation of negligible (0%- 10%) recovery for creditors in the event of a payment default. S&P anticipate that the proposed notes will rank pari passu with the existing subordinated bonds at the UPC Holding level. The issue rating on the proposed notes is two notches below S&P's corporate credit rating on UPC. It is based on preliminary information and is subject to S&P's satisfactory review of final documentation. In the event of any changes to either the amount or terms of the proposed notes, the issue and recovery ratings might be subject to further review. It is S&P's understanding that UPC will use the net proceeds from the proposed notes to repay its subordinated notes maturing in 2014. Recovery Analysis S&P values the UPC group on a going-concern basis, as S&P believes that its leading market position, high barriers to entry, established network assets, and substantial subscriber base would be recognized by potential buyers even under distressed circumstances. At the hypothetical point of default, S&P values the UPC group at about EUR5.4 billion. The recovery rating of '3' on the senior secured debt instruments, issued by UPC, indicates S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default, and the recovery rating of '6' on the subordinated debt, including the proposed notes, issued by UPC Holding, indicates S&P's expectation of negligible (0%-10%) recovery. The recovery prospects for all the UPC group's debt instruments reflect the estimated value available and accessible to the respective creditors, the high proportion of senior secured debt, and the likelihood of insolvency proceedings being adversely influenced by UPC's multijurisdictional exposure. The recovery rating on the senior secured debt reflects the weak security package, including a first-ranking share pledge over all intermediate holding companies that own the cable-operating subsidiaries (no assets are pledged). The high proportion of prior-ranking debt constrains the recovery prospects for subordinated noteholders, including the proposed noteholders. Ratings List New Rating UPC Holding B.V. EUR640 million subordinated notes (proposed) B- Recovery Rating 6 =========== N O R W A Y =========== * NORWAY: Corporate Bankruptcies Down 17% in 2nd Quarter 2010 ------------------------------------------------------------- Statistics Norway reports that in the second quarter of 2010, the number of bankruptcies was 1,240, down 10% compared with the same period last year. According to the report, seven out of ten bankruptcies, a total of 845, were related to enterprises (except sole proprietorships). Compared with the second quarter last year, this number went down by 17%, the report notes. A total of 27% of the bankruptcies relating to enterprises were in the wholesale and retail trade, the report discloses. The report says a total of 395 bankruptcies were related to sole proprietorships and personal bankruptcies. In this group, there was an increase of 9% compared with the second quarter of 2009, the report states. One out of three sole proprietorships that went bankrupt in the second quarter was in construction, the report notes. So far this year, the number of bankruptcies is 2,451, down 12.5% compared with the same period of 2009, the report says. =========== R U S S I A =========== GAZENERGORPOMBANK ZAO: Moody's Withdraws 'E+' Bank Strength Rating ------------------------------------------------------------------ Moody's Investors Service has withdrawn the E+ bank financial strength rating and B2/Not Prime deposit ratings of the stand- alone entity Gazenergorpombank, which ceased to exist as a separate entity on August 2, 2010, following the completion of its legal merger with Bank Rossiya. The newly combined entity is currently rated by Moody's at B2/Not Prime/ E+/Baa1.ru. Concurrently, Moody's Interfax Rating Agency has withdrawn the Baa1.ru long-term national scale rating of GEPB. Moscow-based Moody's Interfax is majority owned by Moody's. Moody's previous rating action on GEPB was on August 3, 2010, when the rating agency downgraded GEPB's deposit ratings to B2/Baa1.ru from Ba3/Aa3.ru and affirmed the E+ BFSR and Not Prime short-term ratings. Headquartered in Moscow, GEPB reported IFRS total assets of RUB168 billion (US$5.5 billion) and shareholders' equity of RUB13.5 billion (US$447 million) as at December 31, 2009. GEPB reported an IFRS net loss of RUB345 million (US$11.4 million) in 2009. =============== S L O V E N I A =============== CENTER NALOZBE: To Go Into Receivership; Debt Settlement Fails -------------------------------------------------------------- Slovenian Press Agency reports that Center Nalozbe will go into receivership after efforts for court-mandated debt settlement failed. Based in Maribor, Slovenia, Center Nalozbe dd -- http://www.center-nalozbe.si/-- is a financial holding company. The Company was established on the basis of changes in ownership structure of Infond Holding 1 dd in 2006. The main activity of the Company is the management of market and non-market investments and the generation of financial returns in line with the portfolio's structure. In 2008, the Company was a target of a takeover offer by Kolonel doo, which controls 78.2% of the Company's shares. In the same year Center Nalozbe dd increased its stake in the capital of Infond Holding dd to 70.1%. The Company also has its investments in the capital of Pivovarna Lasko dd, Radenska dd Radenci, Fructal dd Ajdovscina, Fructal Mak, Delo dd Ljubljana, Pivovarna Union dd Ljubljana, Vital Mestinje dd, Jadranska Pivovara Split, Vecer dd Maribor, Birra P. Kosovo and a wholly owned real estate company Druzba za nekretnine doo based in Split, Croatia. ========= S P A I N ========= ARLO LTD: S&P Withdraws CCC Ratings on Five Classes of Notes ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its credit ratings on five European collateralized debt obligation tranches issued by ARLO Ltd., Midgard CDO PLC, and Eirles Two Ltd. The withdrawals follow the arrangers' recent notification to us that the issuers had fully repurchased these notes. Ratings List Ratings Withdrawn ARLO Ltd. EUR50 Million Secured Limited-Recourse Extendible Credit-Linked Notes Rating ------ Series To From ------ -- ---- 2006 (Madrid CSO) NR CCC- ARLO Ltd. EUR50 Million Secured Limited-Recourse Extendible Credit-Linked Notes Rating ------ Series To From ------ -- ---- 2006 (Valencia CSO) NR CCC- ARLO Ltd. EUR50 Million Secured Limited-Recourse Extendible Credit-Linked Notes Rating ------ Series To From ------ -- ---- 2006 (Seville CSO) NR CCC- Midgard CDO PLC $30 Million Embla Floating-Rate Credit-Linked Notes Rating ------ Series To From ------ -- ---- 2005-10 NR CCC- Eirles Two Ltd. $15 Million Floating-Rate Portfolio Credit-Linked Secured Notes Rating ------ Series To From ------ -- ---- 260 NR CCC- NR - Not-rated. FONCAIXA EMPRESAS: S&P Withdraws 'BB' Rating on Class C Notes ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its preliminary credit ratings on Foncaixa Empresas 2, Fondo de Titulizacion de Activos' EUR2 billion asset-backed floating-rate notes. On June 21, 2010, S&P assigned preliminary credit ratings to the notes. The withdrawals follow the arranger's recent notification to us that it has postponed the closing of the transaction and that it no longer wishes S&P to assign final credit ratings. If the transaction had closed on the original planned closing date S&P would likely have assigned the same final ratings to the notes as the preliminary ratings S&P assigned. However, if this transaction does close in the future it may be with an alternate capital structure, which could include different credit enhancement. As such, S&P cannot confirm as of that S&P would assign the same ratings to the potential final structure if engaged to do so. Ratings List Foncaixa Empresas 2, Fondo de Titulizacion de Activos EUR2 Billion Asset-Backed Floating-Rate Notes Ratings Withdrawn Prelim rating ------------- Class To From ----- -- ---- A1 NR AAA A2 NR AAA B NR A C NR BB NR -- Not rated. =========================== U N I T E D K I N G D O M =========================== AEOLUS CDO: Fitch Downgrades Ratings on Series 2005-3 Notes to D ---------------------------------------------------------------- Fitch Ratings has downgraded these Aeolus CDO Ltd Series 2005-3 synthetic CDO notes: -- EUR35 million Class A (XS0232579986) downgraded to 'D' from 'CCC'; -- EUR16 million Class B (XS0232579127) downgraded to 'D' from 'CC'; -- EUR8 million Class C (XS0232578665) downgraded to 'D' from 'C'; -- EUR11.25 million Class D (XS0232578079) downgraded to 'D' from 'C' The noteholders voted to terminate the transaction prior to the scheduled maturity. The final payment report indicated no principal recovery for any of the rated notes. In Fitch's view, as the noteholders would have continued to receive interest payments without the resolution, it is likely the notes were sold to the counter-party and then unwound. Morgan Stanley ('A'/Outlook Stable/'F1'), the swap counter-party, refused to confirm or deny whether the notes were sold prior to being unwound. In Fitch's opinion even if the noteholders held the notes until maturity, the notes would have defaulted. The credit enhancement of the classes would not have been able to absorb losses from the reference portfolio of which 19% Fitch considers 'CCC' and below. Aeolus was a limited liability company incorporated in Jersey, Channel Islands. This transaction was a funded synthetic securitization of a diverse portfolio of mainly European mezzanine structured finance assets. The structure combined characteristics of both cash and synthetic CDO transactions. Morgan Stanley, the CDS counterparty, had the right to replenish the portfolio during the first six years of the transaction, subject to portfolio guidelines. BAKED SNACK: In Administration Following Staff Pay Dispute ---------------------------------------------------------- Deborah Johnson at The Northern Echo reports that The Baked Snack Company, which employed 90 people, has gone into administration. According to the report, the company, which was accused of not paying staff during January or February, has appointed administrators after being unable to meet its financial obligations. MCR confirmed it is handling the administration, the report notes. The report relates more than 20 tribunals have since been filed against the company by employees claiming for unlawful deduction, breach of contract and constructive dismissal. Based in Middlesbrough, The Baked Snack Company makes a range of biscuits and baked snacks. CATTLES PLC: Fitch Affirms Issuer Default Rating at 'C' ------------------------------------------------------- Fitch Ratings has revised Cattles Plc's senior unsecured bonds' Recovery Rating to 'RR6' from 'RR5'. At the same time, Fitch has affirmed Cattles' Long-term Issuer Default rating at 'C', Short- term IDR at 'C' and senior unsecured bonds (ISIN XS0181857847 and XS0308397149) at Long-term 'C'. The revision reflects the UK Supreme Court decision on 28 July 2010 that effectively determines, finally, that senior unsecured bondholders' "claims are subordinated to the claims of certain bank creditors". Fitch believes that this decision means that recoveries available to bondholders are poor and more consistent with a 'RR6' rating. Certain of Cattles' creditors had been engaged in legal action over the priority of their claims on the company. Its bank creditors and US private placement note holders, but not public senior unsecured bondholders, benefit from upstream guarantees from Cattles' main subsidiaries, to which Cattles on-lent the funds it raised. Cattles' IDRs reflect the standstill agreement in place between Cattles and its creditors. CPI RETAIL: Goes Into Receivership ---------------------------------- Rachel Constantine at Business Sale Report reports that CPI Retail Active Management Programme, the company behind Wallsend's Forum Shopping Centre, entered receivership on August 3. The report relates Secretary of the Chamber of Trade, Gill Ruffles, who owns Maple Textiles in Wallsend, said many tradespeople were hoping the center would be bought by someone with high hopes for the town. According to the report, commercial property company Jones Lang LaSalle has assumed the center's management from Stockland UK, along with four connected centers -- Fareham's Locks Heath Centre, Central Square in Birmingham, Bramley Shopping Centre in Leeds, and West Sussex's The Martlets Shopping Centre. "Our regional retail management teams will be working with the center management staff over the coming months to improve customer experience at each center, as well as driving forward a number of important asset management initiatives," the report quoted Nigel Wheeler, chairman of property and asset management, as saying. DECO 12: Fitch Cuts Ratings on Two Classes of Notes to 'CC' ----------------------------------------------------------- Fitch Ratings has downgraded DECO 12 - UK 4 p.l.c's commercial mortgage-backed notes due January 2020: -- GBP428.5 million class A1 (XS0289644121) affirmed at 'AAA'; Outlook Stable -- GBP115 million class A2 (XS0289644477) downgraded to 'AA' from 'AAA'; Outlook Negative -- GBP35 million class B (XS0289644550) downgraded to 'BBB' from 'A'; Outlook Negative -- GBP28 million class C (XS0289644634) downgraded to 'B' from 'BB'; Outlook Negative -- GBP16 million class D (XS0289644717) downgraded to 'CCC' from 'B'; Recovery Rating 'RR5' assigned -- GBP2.7 million class E (XS0289644808) downgraded to 'CC' from 'CCC-'; Recovery Rating 'RR6' assigned -- GBP1.1 million class F (XS0289644980) downgraded to 'CC' from 'CCC-'; Recovery Rating 'RR6' assigned The two largest loans in the portfolio, Tesco and Merry Hill, account for almost 90% of the loan balance; Fitch still considers these loans to be of good credit quality. However, the remaining portfolio is significantly weaker and has a substantially increased likelihood of incurring a loss which, in turn, would result in a loss on the junior notes. While property values have seen some stabilization and recovery in recent months, many of the assets securing these loans are in secondary locations and are likely to have experienced further value declines since the last rating action. The rating action is primarily driven by Fitch's opinion of the deterioration in the quality of these loans. The Tesco loan (55.5% of the portfolio) is secured by a sale-and- leaseback of 16 Tesco stores located throughout the UK. Prior to the April 2010 interest payment date, the portfolio featured a weighted average unexpired lease term of 16.9 years; however, Tesco has negotiated the insertion of break options into the leases, to enable them to reduce their tax obligations, which has reduced the WA lease length to 6.6 years. The servicer consented to these break options on the condition that they can only be exercised if the loan is fully repaid. Fitch therefore views the new break options as credit-neutral to the loan. The Merry Hill loan (34.3% of the portfolio) is secured by a shopping centre in the West Midlands that is managed by the Westfield Group, a renowned property group with substantial experience in shopping centre management. The center benefits from a strong and diverse tenant base that includes well known, key tenants on long leases. The WA remaining lease term is 10 years; 90% of rent is scheduled to remain in place at loan maturity in January 2012. Despite the interest-only nature of the loan, the moderate Fitch LTV of 65.6% (representing a 39% decline since the original valuation in December 2006) and strong collateral quality indicates a heightened chance of refinance at loan maturity. The eight smaller loans are substantially weaker, with the exception of the Regent Capital Spectrum loan, which is fully cash-collateralized. Fitch LTVs on these loans range between 118% and 138%, indicating it is unlikely that there is any equity interest remaining. One loan -- the Quattro loan -- failed to repay at loan maturity in October 2009 and was subsequently transferred to special servicing in December 2009. Three additional loans, the Borehamwood, Hiltongrove and LMM loans, are on the Fitch watchlist due to income concerns. IMPERIAL CONSOLIDATED: Former Director Godley Jailed for Fraud -------------------------------------------------------------- Iain Martin at Citywire reports that William Godley, a former director of the GBP250-million investment group Imperial Consolidated, has been sentenced to three-and-a-half years imprisonment for conspiracy to defraud at Blackfriars Crown Court. The report relates Mr. Godley was jailed after he pleaded guilty to his involvement in the Ponzi scheme, which left 3,500 investors out-of-pocket. Imperial Consolidated promised high returns to overseas lenders through commercial lending but was loss-making and insolvent, the report says citing the Serious Fraud Office. Mr. Godley has been disqualified from acting as a company director for six years and confiscation proceedings have been adjourned, the report notes. Imperial Consolidated was a UK and offshore finance group. LEGION GROUP: Appoints MCR as Administrators -------------------------------------------- The Board of Legion Group plc, having carefully considered the financial position and prospects of the Company, appointed Paul Williams, John Whitfield and Paul Clark of MCR as Joint Administrators of the Group on August 6, 2010, with immediate effect. MCR were also appointed to Legion FM Limited, a subsidiary company. On July 19, 2010, the Group requested a suspension of trading of its shares with immediate effect pending clarification of the Company's financial position. The Group had stated that it had been in discussions with HM Revenue & Customs regarding outstanding PAYE and VAT liabilities. HMRC had positively indicated for a protracted period that these liabilities would be subject to a Time to Pay Agreement. Based on the correspondence with HMRC, the Directors reasonably believed that a payment plan could be agreed. However upon receipt of a payment of GBP1.5 million, HMRC became less receptive to subjecting the outstanding amount to a feasible payment schedule. The Group received a winding up petition from HMRC, following failure to pay certain liabilities. Lloyds TSB had agreed to provide the Group with a new GBP7.5 million invoice discounting facility. As a result of the Group's financial difficulties with HMRC and the presentation of the winding-up petition, the Group breached its facilities with Lloyds TSB. The Group cannot pay creditors in the ordinary course of business and the Board agreed the Group was insolvent and could no longer continue trading. The Board resolved to seek the appointment of administrators to the Group. The Joint Administrators have successfully concluded a sale of the business and certain assets to OCS Group UK Limited, a leading support services provider ensuring the preservation of 2,800 jobs. Legion Group plc provides security services. MODUS PROPERTIES: Creditors Back CVA; Firm Exits Administration --------------------------------------------------------------- The Joint Administrators of Modus Properties (Wigan) Limited and Modus (Wigan) Limited, Mark Firmin and Richard Fleming from KPMG, disclosed the approval of CVA proposals in respect of the Grand Arcade Shopping Centre in Wigan. The CVA was initially proposed some weeks ago as part of an offer for the shopping center from Redefine International plc. The offer comprised the making of funds available for distribution to both preferential and unsecured creditors through Company Voluntary Arrangements for each company. To come into effect, a CVA has to be approved by 75% of creditors. At a creditor's meeting held earlier Thursday, the two CVAs were voted through by 100% of creditors. This results in the Joint Administrators exiting the administration, rescuing the companies as a going concern. Mark Firmin, joint administrator and partner at KPMG Restructuring, commented: "We are delighted that the CVA has been met with 100 percent approval from creditors. Our primary objective from the outset of this administration was to ensure the survival of the businesses as a going concern. Not only has this been achieved, but the creditors of the two companies will receive a higher dividend distribution than would otherwise be available." He added: "This also demonstrates the versatility of a CVA process. Not only is it a tool that can be used to restructure traditional retail and trading businesses; in this instance, we were able to find an elegant solution for a distressed property company which ultimately delivered maximum value." MRS DISTRIBUTION: Faces Administration; Up to 275 Jobs at Risk -------------------------------------------------------------- Simon Bain at The Herald reports that MRS Distribution is going into administration with the likely loss of up to 275 jobs. According to The Herald, the company has debts of more than GBP10 million. The Herald's sources said employees were told late on Thursday that the company was about to call in KPMG as administrators, but that its JBT Distribution subsidiary would continue. The Herald notes haulage contracts for customers including Whyte & Mackay, Nairns Oatcakes and packaging group Chesapeake are said by employees to have been transferred from MRS to its sister company, with some vehicles being rebadged overnight. Employees were told that unless they were working for JBT, there would be immediate redundancies, and that overtime payments, already subject to a 26- week delay, would not be met, The Herald relates. MRS Distribution is an independent haulier based at Bathgate in West Lothian. PORTSMOUTH FOOTBALL: CVA Can Proceed, High Court Rules ------------------------------------------------------ James Lumley at Bloomberg News reports that the HM Revenue & Customs failed to block an agreement that English soccer team Portsmouth reached with creditors to bring it out of bankruptcy protection. According to Bloomberg, Justice George Mann at the High Court in London ruled the club's "company voluntary arrangement" can proceed. Lawyers for HMRC argued in a two-day hearing that the arrangement would still leave GBP13 million (US$20.6 million) in unpaid tax, Bloomberg discloses. "HMRC is not rendered any worse off" by the agreement "bearing in mind what the alternatives would be," Bloomberg quoted Justice Mann as saying at a hearing Thursday. If the deal was blocked, the club would face "liquidation" and "relegation". Bloomberg recalls Portsmouth, known by fans as "Pompey," in February became the first Premier League soccer club to seek protection from creditors, after amassing more than GBP100 million of debt. The club was docked nine points by the league in March and was close to liquidation after entering administration, a form of bankruptcy protection, Bloomberg recounts. Bloomberg notes the government's lawyer, Gregory Mitchell, said the tax authority won't appeal Thursday's ruling. Bloomberg relates Richard Sheldon, Portsmouth's lawyer, said during the hearing that the club would probably be liquidated if it lost the case as it would be unable to assure the Football League it could fulfill its playing schedule. Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/-- operates Portsmouth FC, a professional soccer team that plays in the English Premier League. Established in 1898, the club boasts two FA Cups, its last in 2008, and two first division championships. Portsmouth FC's home ground is at Fratton Park; the football team is known to supporters as Pompey. Dubai businessman Sulaiman Al-Fahim purchased the club from Alexandre Gaydamak in 2009. A French businessman of Russian decent, Gaydamak had controlled Portsmouth Football Club since 2006. ROSETTA I: S&P Downgrades Ratings on Class B & C Notes ------------------------------------------------------ Standard & Poor's Ratings Services lowered its credit ratings on Rosetta I S.A.'s class B and C notes. At the same time, S&P affirmed its rating on the class A notes. The rating actions follow S&P's review of the transaction using revised recovery assumptions that S&P published in July 2010 for European bank hybrid securities held within collateralized debt obligation portfolios. Rosetta I closed in October 2002 and is a cash flow CDO collateralized by a portfolio comprising hybrid capital securities issued in 2002, or earlier, by European banking groups. The cash flows from any pool of corporate debt are at risk because of potential defaults among the corporate borrowers in the pool. In S&P's view, the cash flows from Rosetta I's portfolio are at additional risk for these reasons: * Bank hybrid capital securities may defer interest; * The hybrid bank capital securities in Rosetta I's portfolio all have call dates before the transaction's legal final maturity date in October 2013, but it is possible that several of these may not be called or otherwise redeemed until after October 2013; and * Under Rosetta I's terms and conditions, the issuer will likely auction "affected securities" -- those that are not redeemed or called before October 2013 -- potentially introducing material market value risk into the transaction. In S&P's opinion, the likelihood of these additional risks affecting future cash flows in Rosetta I has risen since the transaction closed. In the past two years, several highly rated banking groups have chosen not to call hybrid capital securities or have deferred interest payments on them. According to S&P's analysis, the portfolio currently contains three securities (approximately 11.32% of aggregate investments) where S&P has lowered its issue rating to 'C' following interest deferral. In addition, Rosetta I's investment administrator has confirmed that four affected securities have been auctioned to date, incurring a loss of par to the transaction totaling EUR6.43 million. On a more positive note, S&P has observed that several portfolio securities have recently been called or repaid as originally expected, and that all auctions to date have achieved prices above those S&P assumed in its original analysis. S&P last reviewed Rosetta I in March 2010. At that time, S&P took into account market developments affecting bank hybrid capital securities and assessed the impact of scenarios where the transaction experienced varying levels of par loss resulting from defaults with low recoveries and from auction sales at impaired levels. Having taken into account the possibility of low recoveries in S&P's earlier analysis, the impact on Rosetta I's ratings following the publication of its revised recovery assumptions is, in S&P's view, limited. The current 'BBB' rating on class A continues to reflect S&P's opinion of the creditworthiness of the notes, and S&P has therefore affirmed the rating. However, S&P considers it appropriate to lower the ratings on the class B and C notes by one notch in each case, to 'BB-' and 'CCC-', respectively. Ratings List Rosetta I S.A. EUR153.5 Million Floating and Fixed-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- B BB- BB C-1 CCC- CCC C-2 CCC- CCC C-3 CCC- CCC Rating Affirmed Class Rating ----- ------ A BBB ST URSULA'S: Parents May Launch Rescue Campaign ----------------------------------------------- BBC News reports that parents of pupils at St. Ursula's, which went into administration, are to mount a rescue campaign for the debt-ridden private Catholic school. According to BBC, Shelley Hill, whose daughter attended the school, said parents might launch a fund-raising campaign to try to pay off the debts. BBC relates meetings between the school, the administrators Grant Thornton, Oasis Community Learning, which had offered the school support in becoming an academy, and the Sisters of Mercy were held and are expected to continue next week, the report says. The sisters have said they could only support a deal, which would see the school remain Catholic, the report notes. "We've set up a parents campaign group to see if there's anything we can do in a positive manner," the report quoted Mrs. Hill as saying. "We've got the backing of the administrators to do this and we will be keeping parents informed of updates as soon as we get them." As reported by the Troubled Company Reporter-Europe on Aug. 5, 2010, Evening Post said Nigel Morrison and Trevor O'Sullivan, both partners of Grant Thornton, were appointed joint administrators of the school. Evening Post disclosed Mr. O'Sullivan said: "The school has suffered from a progressive decline in pupil numbers -- from a peak of about 400 to the current level of about 160 -- such that it is no longer financially viable in its current format. While the trustees have made every effort to find a potential purchaser capable of delivering a sustainable school operation, unfortunately this has not been achievable in the context of the many constraints and short timescale available. As a result, there is no available funding and the trust has been unable to meet July salary payments. Consequently, the school will close. In these circumstances, our priority will be to deal with the difficult positions in which both the staff and parents find themselves. For example, we will provide every assistance we can in helping parents to find alternative places for their children, including liaising with the local education authority here in Bristol and also seek to arrange meetings with parents and teachers, at the school, as soon as practical." St. Ursula's is a Bristol-based independent mixed catholic private school. UK HOUSING: In Administration; Tenants May Face Losses ------------------------------------------------------ BBC News reports that UK Housing Alliance (North West) Ltd. has gone into administration, putting tenants at risk of losing thousands of pounds. The report relates administrators Baker Tilly said the tenants could rent as normal but 30% payback was no longer guaranteed. According to the report, Bruce Mackay, a partner with Baker Tilly, said the firm would do all they could to help those affected. Based in Didsbury, UK Housing Alliance (North West) Ltd. is a sale and rent back housing company. VIRGIN MEDIA: Fitch Affirms Issuer Default Rating at 'BB' --------------------------------------------------------- Fitch Ratings has affirmed Virgin Media Inc.'s Long-term Issuer Default Rating at 'BB' with Stable Outlook and the Short-term IDR at 'B'. At the same time, Fitch has affirmed all of Virgin Media's debt instrument ratings, as detailed at the end of this release. Virgin Media's IDR of 'BB' is supported by its "second-incumbent" qualities, reflected in its superior network infrastructure and strong market share within its geographical footprint. Although not geographically diversified, Virgin Media nonetheless exhibits low-investment-grade type operating characteristics further supported by EBITDA margins of over 38% and pre-dividend free cash flow (FCF) margins of approximately 10% in Q210. Financial leverage, however, is more characteristic of the 'BB' rating category, as net debt to EBITDA at end-Q210 was 3.9x. Funds from operations (FFO) interest coverage of 3.4x is somewhat weaker compared with 'BB' and 'BBB' range telecoms peers. Revenue, EBITDA and FCF growth trends for 2010 have been exceptionally strong. However, Fitch is cautious over growth rates in the medium to long term on the basis that next generation fiber investments could result in greater competitive and pricing pressures at the 10-20MB broadband tier despite Virgin Media's network advantage. Nonetheless, in Fitch's forecast scenario, deleveraging is anticipated to continue at a reasonable pace, with the company's target net leverage of 3x (net debt to operating cashflow or OCF) still considered achievable within the stated two-to-three years timeframe. Virgin Media's announcement at end- July of up to GBP375 million share buybacks over the coming 12 months ends uncertainty over the company's future financial policy and Fitch has factored this into its forecasts. Virgin Media's disposal of its VMTV content business to British Sky Broadcasting (Sky, 'BBB+'/Stable) has not impacted the rating, since content is considered non-core to the business model. Further, the disposal enabled Virgin Media to agree improved access to premium Sky HD programming which other competitors do not have. The Stable Outlook reflects the continued strong progress made on both operating key performance indicators, such as Average Revenue Per User and revenue generating units/Subscriber, as well as financial metrics, including Fitch's forecasts for FCF generation and deleveraging (measured by FFO adjusted leverage). Positive rating momentum is likely to arise as the company makes further progress towards its stated net debt to OCF target of 3x. Virgin Media debt instruments affirmed: * Virgin Media Investment Holdings senior secured loan facilities: 'BB+' * Virgin Media Secured Finance Plc 2018 senior secured bonds: 'BB+' * Virgin Media Finance Plc 2016 and 2019 senior notes: 'BB' WRAPIT PLC: Directors Disqualified Following Probe -------------------------------------------------- Directors of Wrapit Plc, a failed wedding gift company based in Wandsworth, London, have been disqualified from acting as company directors for a combined total of 15 years following an investigation carried out by The Insolvency Service on behalf of the government. Managing Director Peter Gelardi and Retail Director Pepita Diamand were each disqualified for eight years and seven years respectively, following an investigation into their conduct as directors. Insolvency Service investigators found that between June 2008 and July 2008 Wrapit made a number of false credit card refunds totaling GBP243,445. The "refunds" were processed through the company's merchant card processing facility even though no underlying sales transactions had taken place. The money was then used to pay staff salaries, certain suppliers of goods and services, and Mr. Gelardi and Ms. Diamand. This improper action enabled Wrapit to continue trading, and to continue taking advance payments of at least GBP872,000 from new customers, at a time when the company was already insolvent. Mr. Gelardi made the decision to make the false refunds and Ms. Diamand assisted in implementing the decision. Wrapit began trading in 2001 to provide an internet based wedding gift service. Couples used the company's "virtual department store" to create gift lists which were purchased by their wedding guests. Wrapit's accounts show that the company never made a profit and when it collapsed in August 2008 there were 72,000 undelivered wedding gifts for which the company owed over GBP4 million. The company entered administration in August 2008 with debts of over GBP7 million. Commenting on the investigation, Vicky Bagnall, Director of Company Investigations for The Insolvency Service said: "In this sad case thousands of newly-weds have had their big day spoilt following the wrong-doing of Wrapits directors. The undertakings signed by Gelardi and Diamand send a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by The Insolvency Service and as a result removed from the business environment." The disqualification against Ms. Diamand took effect on August 6 and while Mr. Gelardi's disqualification will take effect on August 19, 2010. * UK: Company Liquidations Up 0.5% to 4,080 in 2nd Qtr. 2010 ------------------------------------------------------------ The Insolvency Service published statistics showing insolvencies in the second quarter of 2010 on August 6. Company Insolvencies There were 4,080 compulsory liquidations and creditors' voluntary liquidations in total in England and Wales in the second quarter of 2010 (on a seasonally adjusted basis). This was an increase of 0.5% on the previous quarter and a decrease of 19.1% on the same period a year ago. This was made up of 1,169 compulsory liquidations (which are down 9.9% on the previous quarter and down 21.0% on the corresponding quarter of the previous year), and 2,911 creditors voluntary liquidations (which are up 5.4% on the previous quarter and down 18.3% on the corresponding quarter of the previous year). In the twelve months ending Q2 2010, approximately 1 in 127 active companies (or 0.8%) went into liquidation, which is a slight decrease from the previous quarter, when this figure stood at 1 in 120. Additionally, there were 1,311 other corporate insolvencies in the second quarter of 2010 (not seasonally adjusted) comprising 302 receiverships, 777 administrations and 232 company voluntary arrangements. In total these represented a decrease of 14.3% on the same period a year ago. Individual Insolvencies (not seasonally adjusted) There were 34,743 individual insolvencies in England and Wales in the second quarter of 2010. This was an increase of 5.0% on the same period a year ago. This was made up of 14,982 bankruptcies (which were down 20.6% on the corresponding quarter of the previous year), 13,466 Individual Voluntary Arrangements (IVAs), (which were up 10.2% on the corresponding quarter of the previous year) and 6,295 Debt Relief Orders (DROs). In the second quarter of 2010, 85.7% of bankruptcies were made on the petition of the debtor, comparable to the levels for recent quarters. The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 12.7% in the first quarter of 2010 (second quarter 2010 figures for trading-related bankruptcies are not yet available), similar to the level for 2009 as a whole. =============== X X X X X X X X =============== * BOND PRICING: For the Week August 2 to August 6, 2010 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- RAIFF ZENTRALBK 4.500 9/28/2035 EUR 66.17 RAIFF ZENTRALBK 4.150 9/26/2025 EUR 65.69 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 14.12 FINLAND ------- MUNI FINANCE PLC 1.000 2/27/2018 AUD 68.48 MUNI FINANCE PLC 1.000 6/30/2017 ZAR 65.95 MUNI FINANCE PLC 0.500 3/17/2025 CAD 53.04 MUNI FINANCE PLC 0.500 9/24/2020 CAD 67.53 MUNI FINANCE PLC 0.250 6/28/2040 CAD 23.72 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 14.84 ALCATEL SA 4.750 1/1/2011 EUR 16.52 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.24 ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.69 ATOS ORIGIN SA 2.500 1/1/2016 EUR 50.38 CALYON 6.000 6/18/2047 EUR 39.47 CAP GEMINI SOGET 3.500 1/1/2014 EUR 43.39 CAP GEMINI SOGET 1.000 1/1/2012 EUR 44.18 CLUB MEDITERRANE 4.375 11/1/2010 EUR 49.70 EURAZEO 6.250 6/10/2014 EUR 55.12 FAURECIA 4.500 1/1/2015 EUR 20.74 GROUPE VIAL 2.500 1/1/2014 EUR 18.41 MAUREL ET PROM 7.125 7/31/2015 EUR 12.19 MAUREL ET PROM 7.125 7/31/2014 EUR 16.23 NEXANS SA 4.000 1/1/2016 EUR 62.02 PEUGEOT SA 4.450 1/1/2016 EUR 29.90 PUBLICIS GROUPE 3.125 7/30/2014 EUR 38.45 PUBLICIS GROUPE 1.000 1/18/2018 EUR 48.19 RHODIA SA 0.500 1/1/2014 EUR 45.79 SOC AIR FRANCE 2.750 4/1/2020 EUR 20.50 SOITEC 6.250 9/9/2014 EUR 10.24 TEM 4.250 1/1/2015 EUR 54.77 THEOLIA 2.000 1/1/2041 EUR 12.43 VALEO 2.375 1/1/2011 EUR 46.71 ZLOMREX INT FIN 8.500 2/1/2014 EUR 49.00 ZLOMREX INT FIN 8.500 2/1/2014 EUR 49.00 GERMANY ------- DEUTSCHE BK LOND 3.000 5/18/2012 CHF 60.91 ESCADA AG 7.500 4/1/2012 EUR 18.75 HSH NORDBANK AG 4.375 2/14/2017 EUR 72.94 L-BANK FOERDERBK 0.500 5/10/2027 CAD 47.74 QIMONDA FINANCE 6.750 3/22/2013 USD 2.38 RENTENBANK 1.000 3/29/2017 NZD 74.68 SOLON AG SOLAR 1.375 12/6/2012 EUR 40.99 VPV LEBENSVERSIC 7.250 8/17/2026 EUR 66.13 GREECE ------ HELLENIC REP I/L 2.300 7/25/2030 EUR 50.12 HELLENIC REP I/L 2.900 7/25/2025 EUR 53.31 HELLENIC REPUB 5.000 8/22/2016 JPY 73.60 HELLENIC REPUB 2.125 7/5/2013 CHF 76.69 HELLENIC REPUB 5.200 7/17/2034 EUR 62.49 HELLENIC REPUB 5.000 3/11/2019 EUR 70.38 HELLENIC REPUB 6.140 4/14/2028 EUR 69.97 HELLENIC REPUBLI 4.600 7/20/2018 EUR 69.04 HELLENIC REPUBLI 4.600 9/20/2040 EUR 57.30 HELLENIC REPUBLI 5.300 3/20/2026 EUR 64.01 HELLENIC REPUBLI 6.000 7/19/2019 EUR 73.64 HELLENIC REPUBLI 6.250 6/19/2020 EUR 75.46 HELLENIC REPUBLI 4.700 3/20/2024 EUR 62.83 HELLENIC REPUBLI 3.600 7/20/2016 EUR 71.25 HELLENIC REPUBLI 3.700 7/20/2015 EUR 73.36 HELLENIC REPUBLI 4.500 9/20/2037 EUR 56.89 HELLENIC REPUBLI 4.300 7/20/2017 EUR 69.53 NATIONAL BK GREE 3.875 10/7/2016 EUR 71.76 YIOULA GLASSWORK 9.000 12/1/2015 EUR 65.21 YIOULA GLASSWORK 9.000 12/1/2015 EUR 64.25 IRELAND ------- ALLIED IRISH BKS 5.250 3/10/2025 GBP 62.25 DEPFA ACS BANK 5.125 3/16/2037 USD 73.02 DEPFA ACS BANK 5.125 3/16/2037 USD 72.39 DEPFA ACS BANK 0.500 3/3/2025 CAD 37.94 DEPFA ACS BANK 4.900 8/24/2035 CAD 71.93 DEPFA ACS BANK 1.920 5/9/2020 JPY 69.81 IRISH NATIONWIDE 13.000 8/12/2016 GBP 82.06 ITALY ----- CITY OF TURIN 5.270 6/26/2038 EUR 73.18 COMUNE DI MILANO 4.019 6/29/2035 EUR 71.57 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 28.80 BREEZE FINANCE 4.524 4/19/2027 EUR 87.90 GLOBAL YATIRIM H 9.250 7/31/2012 USD 70.00 IIB LUXEMBOURG 11.000 2/19/2013 USD 65.00 INTL INDUST BANK 9.000 7/6/2011 EUR 71.88 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 60.74 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 61.57 NETHERLANDS ----------- APP INTL FINANCE 11.750 10/1/2005 USD 1.00 ARPENI PR INVEST 8.750 5/3/2013 USD 43.25 ARPENI PR INVEST 8.750 5/3/2013 USD 43.25 BK NED GEMEENTEN 0.500 2/24/2025 CAD 53.82 BLT FINANCE BV 7.500 5/15/2014 USD 70.00 BLT FINANCE BV 7.500 5/15/2014 USD 70.50 BRIT INSURANCE 6.625 12/9/2030 GBP 63.07 ELEC DE CAR FIN 8.500 4/10/2018 USD 54.00 FRIESLAND BANK 4.125 1/8/2016 EUR 55.34 FRIESLAND BANK 5.320 2/26/2024 EUR 44.75 NATL INVESTER BK 25.983 5/7/2029 EUR 20.23 NED WATERSCHAPBK 0.500 3/11/2025 CAD 52.11 Q-CELLS INTERNAT 5.750 5/26/2014 EUR 68.56 RBS NV EX-ABN NV 6.316 6/29/2035 EUR 69.60 TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.01 TURANALEM FIN BV 7.875 6/2/2010 USD 47.63 TURANALEM FIN BV 7.750 4/25/2013 USD 47.83 TURANALEM FIN BV 8.500 2/10/2015 USD 48.81 TURANALEM FIN BV 8.000 3/24/2014 USD 46.00 TURANALEM FIN BV 8.250 1/22/2037 USD 48.81 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 40.74 NORSKE SKOGIND 7.000 6/26/2017 EUR 69.30 POLAND ------ REP OF POLAND 3.300 6/16/2038 JPY 64.06 REP OF POLAND 2.648 3/29/2034 JPY 57.97 REP OF POLAND 3.220 8/4/2034 JPY 65.42 PORTUGAL -------- METRO DE LISBOA 4.061 12/4/2026 EUR 73.86 RUSSIA ------ ACBK-INVEST 9.500 4/14/2011 RUB 2.01 AGROKOM GROUP 10.000 6/21/2011 RUB 3.01 AGROSOYUZ 17.000 3/28/2012 RUB 2.00 AIZK 7.400 7/15/2014 RUB 2.05 AMET-FINANS 12.500 8/22/2013 RUB 2.00 APK ARKADA 17.500 5/23/2012 RUB 0.38 ARKTEL-INVEST 12.000 4/9/2012 RUB 1.00 ATOMSTROYEXPORT- 7.750 5/24/2011 RUB 1.00 BANK OF MOSCOW 6.450 7/29/2011 RUB 2.01 BANK SOYUZ 9.500 2/23/2011 RUB 1.00 BANK SOYUZ 16.000 5/2/2011 RUB 1.00 BARENTSEV FINANS 20.000 7/4/2011 RUB 30.00 CREDIT EUROPE BA 11.500 6/28/2011 RUB 0.04 DALUR-FINANS 14.000 2/5/2013 RUB 1.00 DERZHAVA-FINANS 16.500 7/27/2010 RUB 0.50 DIPOS 8.000 6/19/2012 RUB 15.01 DVTG-FINANS 14.500 8/3/2010 RUB 16.50 DVTG-FINANS 17.000 8/29/2013 RUB 9.02 EESK 8.740 4/5/2012 RUB 15.50 ENERGOSPETSSNAB 8.500 5/30/2016 RUB 0.03 ENERGOSTROY-FINA 12.000 5/20/2011 RUB 1.00 EUROKOMMERZ 16.000 3/15/2011 RUB 0.01 FAR EASTERN GENE 10.500 3/8/2013 RUB 15.58 FINANCEBUSINESSG 10.000 7/1/2013 RUB 0.04 FINANCEBUSINESSG 12.500 6/22/2011 RUB 5.00 GLOBEX-FINANS 0.100 4/26/2011 RUB 15.01 GRACE DIAMOND 15.000 6/7/2012 RUB 1.01 GRADOSTROY-INVES 11.000 3/3/2011 RUB 1.00 HCF BANK 12.200 6/10/2014 RUB 3.00 HORTEX-FINANS 13.000 8/14/2013 RUB 3.00 IAZS 11.000 12/8/2010 RUB 4.00 INPROM 9.500 5/18/2011 RUB 40.01 INTERGRAD 15.000 7/9/2014 RUB 2.01 INTL INDUST BANK 13.250 1/3/2018 RUB 2.01 INVESTTORGBANK 14.500 10/8/2012 RUB 2.00 IZHAVTO 18.000 6/9/2011 RUB 11.31 KAMAZ-FINANS 11.250 9/17/2010 RUB 40.00 KARUSEL FINANS 12.000 9/12/2013 RUB 1.00 KOMOS GROUP 13.500 7/21/2011 RUB 15.57 KOSMOS-FINANS 10.200 6/16/2011 RUB 15.50 KUBANSKAYA NIVA 15.500 2/20/2014 RUB 1.00 LADYA FINANS 13.750 9/13/2012 RUB 1.01 LEKSTROY 0.100 7/22/2011 RUB 2.00 LIPETSK REGION 7.950 7/19/2011 RUB 10.01 LR-INVEST 13.750 7/17/2012 RUB 6.01 LSR-INVEST 9.250 7/14/2011 RUB 24.01 M-INDUSTRIYA 14.250 7/10/2013 RUB 50.00 M-INDUSTRIYA 12.250 8/16/2011 RUB 24.51 MACROMIR-FINANS 7.750 7/3/2012 RUB 6.00 MAIN ROAD OJSC 10.200 6/3/2011 RUB 3.00 MEDVED-FINANS 16.500 9/1/2010 RUB 4.00 METROSTROY INVES 10.500 9/23/2011 RUB 20.01 MIG-FINANS 0.100 9/6/2011 RUB 6.01 MIRAX 14.990 5/17/2011 RUB 34.68 MIRAX 17.000 9/17/2012 RUB 30.00 MORTON-RSO 12.000 2/28/2011 RUB 1.00 MOSKOMMERTSBANK 12.000 2/15/2011 RUB 1.00 MOSKOMMERTSBANK 1.000 6/12/2013 RUB 15.50 MOSMART FINANS 0.010 4/12/2012 RUB 5.00 MOSOBLGAZ 12.000 5/17/2011 RUB 72.50 MOSOBLTRUSTINVES 20.000 3/26/2011 RUB 6.99 MOSSELPROM FINAN 14.000 4/10/2014 RUB 3.00 NATIONAL CAPITAL 12.500 5/20/2011 RUB 6.00 NATIONAL CAPITAL 13.000 9/25/2012 RUB 1.00 NATIONAL FACTORI 11.500 5/3/2011 RUB 3.00 NAUKA-SVYAZ 15.000 6/27/2013 RUB 2.01 NEW INVESTMENTS 12.000 7/7/2011 RUB 2.01 NOK 15.500 9/22/2011 RUB 9.01 NOK 17.000 8/26/2014 RUB 3.00 NOMOS-LEASING 12.000 7/8/2011 RUB 2.01 NOVOROSSIYSK 13.000 12/9/2011 RUB 2.01 NUTRINVESTHOLDIN 11.000 6/30/2014 RUB 26.72 OBYEDINEONNYE KO 15.000 4/17/2013 RUB 4.00 OBYEDINEONNYE KO 3.000 5/16/2012 RUB 2.01 OJSC FCB 11.000 8/7/2012 RUB 1.00 ORENBURG IZHK 9.240 2/21/2012 RUB 3.00 OSMO KAPITAL 10.200 3/7/2011 RUB 1.00 PEB LEASING 14.000 9/12/2014 RUB 1.00 PENSION FUND REA 5.000 5/7/2019 RUB 1.00 PERVYI OBIEDINEO 9.500 6/29/2011 RUB 2.07 POLYPLAST 19.000 6/21/2011 RUB 41.00 PROM TECH 16.000 4/25/2011 RUB 2.01 PROMNESTESERVICE 9.500 12/5/2014 RUB 3.00 PROMTRACTOR-FINA 18.000 7/24/2013 RUB 68.02 PROTEK-FINANS 12.000 11/2/2011 RUB 35.04 PROTON-FINANCE 9.000 6/12/2012 RUB 2.01 RAF-LEASING 12.500 2/21/2012 RUB 1.00 RAILTRANSAUTO 17.500 12/4/2013 RUB 2.00 REGIONENERGO 8.500 5/30/2016 RUB 2.01 RMK PARK PLAZA 10.000 1/8/2013 RUB 14.88 RUSSIAN SEA 10.000 6/14/2012 RUB 21.20 RVK-FINANS 9.500 7/21/2011 RUB 15.58 RYBINSKKABEL 0.010 2/28/2012 RUB 1.00 SATURN 10.000 6/6/2014 RUB 5.00 SENATOR 14.000 5/18/2012 RUB 14.74 SETL GROUP 11.700 5/15/2012 RUB 29.01 SEVKABEL-FINANS 10.500 3/27/2012 RUB 11.50 SIBIRSKAYA AGRAR 17.000 9/12/2012 RUB 2.89 SIBUR 10.470 11/1/2012 RUB 3.00 SISTEMA-HALS 8.500 4/8/2014 RUB 0.01 SOUTHERN STOCK C 15.750 4/29/2014 RUB 2.00 SPETSSTROYFINANC 8.500 5/30/2016 RUB 0.01 STROYTRANSGAZ 8.500 4/11/2013 RUB 15.61 TALIO-PRINCEPS 16.000 5/17/2012 RUB 4.00 TECHNOSILA-INVES 7.000 5/26/2011 RUB 4.01 TERNA-FINANS 1.000 11/4/2011 RUB 9.00 TK FINANS 12.600 9/5/2011 RUB 6.00 TOP-KNIGA 20.000 12/9/2010 RUB 51.00 TRANSCREDITFACTO 12.000 11/1/2012 RUB 5.00 TRANSCREDITFACTO 12.000 6/11/2012 RUB 4.00 TRANSFIN-M 11.000 12/3/2014 RUB 7.00 TRANSFIN-M 11.000 12/3/2015 RUB 6.00 TRANSFIN-M 11.000 12/3/2015 RUB 5.00 TRANSFIN-M 11.000 12/3/2014 RUB 6.00 TRANSFIN-M 11.000 12/3/2015 RUB 3.00 TRANSFIN-M 11.000 12/3/2015 RUB 3.00 TRANSFIN-M 11.000 12/3/2014 RUB 7.00 TRANSFIN-M 10.750 8/10/2012 RUB 5.00 TRANSFIN-M 14.000 7/10/2014 RUB 4.01 TRANSFIN-M 11.000 12/3/2014 RUB 6.00 TVER VAGONOSTRO 7.000 6/12/2013 RUB 0.30 UNIMILK FINANS 14.000 9/6/2011 RUB 35.04 UNITAIL 12.000 6/22/2011 RUB 43.00 UNITED HEAVY MAC 13.000 5/31/2013 RUB 3.00 UNITED HEAVY MAC 13.000 8/30/2011 RUB 32.01 URALCHIMPLAST 8.000 1/21/2011 RUB 0.01 URALSVYAZINFORM 7.500 4/2/2013 RUB 7.00 VESTER-FINANS 15.250 8/11/2011 RUB 6.00 VKM-LEASING FINA 1.000 5/18/2011 RUB 0.30 VLADPROMBANK 12.000 3/8/2011 RUB 1.00 VMK-FINANCE 16.000 5/21/2014 RUB 5.00 XM STROYRESURS 10.000 7/12/2011 RUB 27.01 YUGFINSERVICE 15.250 5/20/2014 RUB 9.85 ZAO EUROPLAN 14.500 8/11/2011 RUB 2.00 ZAPSIBCOMBANK 11.000 9/15/2011 RUB 4.00 ZHELDORIPOTEKA 13.000 9/19/2012 RUB 3.00 ZHELEZOBETON 12.000 5/27/2011 RUB 17.01 ZHILSOTSIPOTEKA- 9.000 7/26/2011 RUB 1.01 SPAIN ----- AYT CEDULAS CAJA 3.750 6/30/2025 EUR 71.63 BANCAJA 1.500 5/22/2018 EUR 59.91 BANCAJA EMI SA 2.755 5/11/2037 JPY 40.70 BANCO GUIPUZCOAN 1.500 4/18/2022 EUR 51.66 CAIXA TERRASSA 1.500 3/12/2022 EUR 49.01 CAJA MEDITERRANE 4.600 7/31/2020 EUR 72.72 CEDULAS TDA 6 3.875 5/23/2025 EUR 74.04 CEDULAS TDA A-5 4.250 3/28/2027 EUR 75.13 CEDULAS TDA A-6 4.250 4/10/2031 EUR 71.26 SWITZERLAND ----------- UBS AG 13.300 5/23/2012 USD 4.03 UBS AG 10.580 6/29/2011 USD 38.50 UBS AG 14.000 5/23/2012 USD 8.83 UBS AG JERSEY 10.000 2/11/2011 USD 59.88 UBS AG JERSEY 10.650 4/29/2011 USD 15.79 UBS AG JERSEY 14.640 1/31/2011 USD 36.95 UBS AG JERSEY 13.900 1/31/2011 USD 35.33 UBS AG JERSEY 16.170 1/31/2011 USD 12.88 UBS AG JERSEY 9.500 8/31/2010 USD 57.60 UBS AG JERSEY 9.000 8/13/2010 USD 55.20 UBS AG JERSEY 3.220 7/31/2012 EUR 56.87 UBS AG JERSEY 9.450 9/21/2011 USD 49.55 UBS AG JERSEY 11.150 8/31/2011 USD 38.22 UBS AG JERSEY 10.360 8/19/2011 USD 51.89 UBS AG JERSEY 9.350 9/21/2011 USD 66.32 UBS AG JERSEY 13.000 6/16/2011 USD 48.78 UBS AG JERSEY 10.500 6/16/2011 USD 72.54 UBS AG JERSEY 10.280 8/19/2011 USD 35.15 UBS AG JERSEY 11.030 4/21/2011 USD 20.57 UBS AG JERSEY 10.820 4/21/2011 USD 21.61 UBS AG JERSEY 16.160 3/31/2011 USD 43.29 UBS AG JERSEY 12.800 2/28/2011 USD 34.30 UBS AG JERSEY 11.000 2/28/2011 USD 63.92 UBS AG JERSEY 15.250 2/11/2011 USD 11.74 UNITED KINGDOM -------------- ASHTEAD HOLDINGS 8.625 8/1/2015 USD 62.63 ASHTEAD HOLDINGS 8.625 8/1/2015 USD 62.63 BANK OF SCOTLAND 6.984 2/7/2035 EUR 69.24 BARCLAYS BK PLC 10.950 5/23/2011 USD 59.50 BARCLAYS BK PLC 10.600 7/21/2011 USD 41.21 BARCLAYS BK PLC 9.000 6/30/2011 USD 43.24 BARCLAYS BK PLC 7.610 6/30/2011 USD 53.33 BARCLAYS BK PLC 12.950 4/20/2012 USD 19.76 BARCLAYS BK PLC 10.350 1/23/2012 USD 20.85 BARCLAYS BK PLC 8.550 1/23/2012 USD 11.42 BRADFORD&BIN BLD 5.500 1/15/2018 GBP 45.33 BRADFORD&BIN BLD 4.910 2/1/2047 EUR 63.31 BRADFORD&BIN PLC 6.625 6/16/2023 GBP 44.14 BRADFORD&BIN PLC 7.625 2/16/2049 GBP 47.25 BROADGATE FINANC 5.098 4/5/2033 GBP 70.42 CO-OPERATIVE BNK 5.875 3/28/2033 GBP 74.91 EFG HELLAS PLC 6.010 1/9/2036 EUR 60.88 EFG HELLAS PLC 5.400 11/2/2047 EUR 60.50 ENTERPRISE INNS 6.375 9/26/2031 GBP 69.63 HBOS PLC 6.000 11/1/2033 USD 62.01 HBOS PLC 4.500 3/18/2030 EUR 70.49 HBOS PLC 6.000 11/1/2033 USD 62.01 NORTHERN ROCK 5.750 2/28/2017 GBP 65.33 NORTHERN ROCK 4.574 1/13/2015 GBP 74.10 PRINCIPALITY BLD 5.375 7/8/2016 GBP 65.44 PUNCH TAVERNS 6.468 4/15/2033 GBP 72.58 ROYAL BK SCOTLND 6.620 6/9/2025 EUR 75.17 ROYAL BK SCOTLND 10.000 2/15/2045 USD 60.31 ROYAL BK SCOTLND 9.500 4/4/2025 USD 68.94 TXU EASTERN FNDG 6.450 5/15/2005 USD 0.01 UNIQUE PUB FIN 7.395 3/28/2024 GBP 76.25 UNIQUE PUB FIN 6.464 3/30/2032 GBP 64.12 WESSEX WATER FIN 1.369 7/31/2057 GBP 23.19 ********* 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 * * *