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/raid1/www/Hosts/bankrupt/TCREUR_Public/100908.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, September 8, 2010, Vol. 11, No. 177 Headlines A U S T R I A GLOUCESTER ENGINEERING: Has Debt Settlement Deal With Creditors B E L G I U M TRUVO USA: U.S. Plan Outline Hearing Resumes Today G E R M A N Y ADAM OPEL: Troubled Operations Likely to Affect GM IPO BOWE SYSTEC: Axentum Capital to Take Over European & Japanese Biz G R E E C E ATTIKAT SA: Files for Creditor Protection * GREECE: Faces "Substantial" Default Risk, Fund Manager Says H U N G A R Y MALEV ZRT: ILFC to Forbid Use of Airplanes if Fees Not Paid * HUNGARY: Company Liquidations Up 19.2% in First Eight Months I R E L A N D ANGLO IRISH: Bailout Won't Bankrupt Ireland, Lenihan Says R O M A N I A * ROMANIA: Real Estate Projects Face Insolvencies U N I T E D K I N G D O M BLIGHT AND SCOBLE: Faces Liquidation; 50 Jobs Affected BRITISH AIRWAYS: Still Open to Qantas Merger, CEO Says BRITISH AIRWAYS: Unite Mulls Fresh Industrial Action CALYX GROUP: In Administration; FRP Advisory Seeks Buyer RAB CAPITAL: CEO Stephen Couttie Steps Down X X X X X X X X * EUROPE: Ailing State Should Not Be Bailed Out, Slovak PM Says ********* ============= A U S T R I A ============= GLOUCESTER ENGINEERING: Has Debt Settlement Deal With Creditors --------------------------------------------------------------- Chris Smith at European Plastics News reports that creditors of Gloucester Engineering Europe voted in the Austrian bankruptcy court on Sept. 1 to accept a settlement proposal put forward by US parent Gloucester Engineering Co that will pay out 30% of money owed to them. Citing Raoul Wagner, bankruptcy trustee for the Vienna-based Gloucester Engineering Europe business, the report says the parent company will make a total contribution of around EUR403,000 under the proposed settlement. According to the report, the deal, which will become final if no creditor files an appeal before Sept. 14, will see Type 1 creditors -- those owed money prior to the company filing for bankruptcy on February 18 of this year -- receive 30% of the EUR935,000 owed to them (around EUR280,000). The report says Type 2 creditors -- those holding debts emerging after the bankruptcy date -- will receive 100% (around EUR68,000 in total). The parent company will also cover legal fees amounting to EUR54,000, the report notes. Gloucester Engineering Europe GmbH is a subsidiary of Gloucester Engineering Co. Inc., a blown and cast film machinery maker in Gloucester, Massachusetts. GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering. Gloucester Engineering's Chapter 7 case -- filed on March 23, 2010 -- was converted to Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D. Mass. Case No. 10-12967). ============= B E L G I U M ============= TRUVO USA: U.S. Plan Outline Hearing Resumes Today -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the U.S. Bankruptcy Court for the Southern District of New York held a hearing on September 1 to consider approval of the disclosure statement explaining the Chapter 11 plan for Truvo Luxemburg Sarl. Truvo will make changes in the disclosure statement prior to another hearing on Sept. 8. The Plan is opposed by the unsecured creditors' committee comprised of two holders of second-lien debt and their indenture trustee. The members are AllianceBernstein LP, Normandy Hill Capital LP, and Bank of New York Mellon-London Branch as indenture trustee. Under the Plan, the senior lenders under are to receive the new equity plus EUR600 million new debt. In return for the EUR595 million on two issues of second-priority notes, the holders are to be given EUR15 million and warrants for 14% of the stock at a EUR150 million price. If the second lien lenders vote against the plan, they are to receive nothing. For the EUR174 million on pay- in- kind third-priority notes, holders will receive warrants for 1 percent of the stock. If the class votes against the plan, they are to receive nothing. The new debt for the senior lenders is to consist of EUR350 million in first-lien debt, EUR100 million in second-lien debt, and EUR150 million in pay-in-kind debt. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/TruvoUSA_DS.pdf About Truvo USA Wilmington, Delaware-based Truvo USA LLC is a non-operating subsidiary of Belgium-based Truvo Luxembourg S.a.r.l, which publishes print and online directories through its operating subsidiaries. Truvo USA and other non-operating affiliates filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-13513). The Company estimated US$500 million to US$1 billion in assets and more than US$1 billion in debts in its Chapter 11 petition. Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist the Company in its restructuring effort. Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the Company's special counsel. Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's restructuring and financial advisor. Truvo Luxembourg and its operating subsidiaries have not sought protection under Chapter 11 protection or any other insolvency regime. ============= G E R M A N Y ============= ADAM OPEL: Troubled Operations Likely to Affect GM IPO ------------------------------------------------------ Vanessa Fuhrmans at The Wall Street Journal reports that General Motors Co.'s troubled Opel operations in Europe is likely to prompt concern by investors as the U.S. auto maker plans to go public. The Journal says one of the tougher tasks GM faces is making the case that its Opel operations in Europe can be fixed. According to the Journal, while the U.S. auto maker has reported two consecutive quarters of profit since emerging from bankruptcy last year, its Opel/Vauxhall unit -- the backbone of GM's European operations -- continues to lose money and remains caught between high production costs and a brand image badly bruised by nearly two years of financial uncertainty. Opel's market share keeps sliding in an already declining European car market, adding to pressure on GM and Opel's management to show would-be investors that it has an effective turnaround strategy for Europe in place, the Journal states. Car registration figures released last week show new registrations for Opel in Germany have fallen 39% through August of this year, the Journal discloses. As a result, its German market share has slipped to 7.7% from 9% in 2009, the report notes. Across Western Europe, Opel's share fell to 7% through the year's first half, down from 7.4% last year, the Journal says, citing the ACEA European Automobile Manufacturers' Association. According to WSJ, analysts say Opel faces a daunting battle in returning to sustainable profitability. Even in the midst of a broad restructuring that involves shedding 8,000 jobs, all but one of Opel's 13 plants will stay open and most of its production will remain concentrated in relatively high-cost Western Europe, the report states. The Journal notes that despite plans to move into new markets such as China and Israel, the auto maker said it would take considerable time to build a substantial presence outside Europe. Opel lacks the image or products to command higher prices charged by rivals such as BMW AG to help boost its profit margins, said Juergen Pieper, an auto analyst at Bankhaus Metzler in Frankfurt, according to WSJ. WSJ relates analysts and dealers say Opel's most pressing problem is restoring its image, particularly in Germany, where it has been battered by months of questions over its survival, ownership and financing for its turnaround. Adam Opel GmbH -- http://www.opel.com/-- is General Motors Corp.'s German wholly owned subsidiary. Opel started making cars in 1899. Opel makes passenger cars (including the Astra, Corsa, and Vectra) and light commercial vehicles (Combo and Movano). Its high-performance VXR range includes souped-up versions of Opel models like the Meriva minivan, the Corsa hatchback, and the Astra sports compact. Opel is GM's largest subsidiary outside North America. * * * As reported by the Troubled Company Reporter-Europe, Bloomberg News said GM decided in June this year to fund Opel's EUR3.3 billion (US$4.3 billion) restructuring, after failing to secure aid from European countries. As reported by the Troubled Company Reporter-Europe on June 11, 2010, Bloomberg News said Germany turned down GM's request for EUR1.1 billion (US$1.3 billion) in aid for its money-losing Opel division, forcing the automaker to seek new ways to reorganize the unit. Bloomberg disclosed Opel sought EUR333 million in guarantees from the U.K., EUR437 million from Austria and Spain combined and EUR50 million in project financing from Poland. Bloomberg said the Opel-Vauxhall reorganization program includes eliminating 8,300 jobs from a European workforce of 48,000 employees. BOWE SYSTEC: Axentum Capital to Take Over European & Japanese Biz ----------------------------------------------------------------- The European and non-European business of the insolvent BOWE SYSTEC AG, in particular its Japanese business, is to continue under new ownership, the company said in a news release. On Sept. 2, the Swiss private equity firm Axentum Capital AG came to an agreement with the auditor Werner Schneider, acting as insolvency administrator, regarding a takeover of BOWE SYSTEC. This company incorporates the German and other European activities of the Augsburg mailroom systems manufacturer as well as its non- European business (excluding the USA). Both parties have agreed not to disclose the purchase price. "Having the signature at the bottom of the purchase contract and the notary certification means we have assured the continuation of essential parts of the insolvent BOWE SYSTEC AG under a new structure," said Werner Schneider, auditor and insolvency administrator from the law firm Schneider, Geiwitz & Partner in Neu-Ulm. This was made possible thanks to a quick approval from the relevant banks, which agreed to a release of collateral as a condition of the quick sale. Another important condition for the conclusion of the contract was the willingness of IG-Metall and the Works Council to come to a restructuring wage agreement which accommodates the necessary labor-cost requirements of the BOWE NewCo. The complete financing of the transaction has been secured, which means that there are no contractual conditions to be met in this regard. "By quickly reaching agreement with a reliable investor, we have managed to ensure that the company's operations can continue," continued Mr. Schneider. This meant that the maximum number of jobs could be saved. Since filing for insolvency in May of this year, Mr. Schneider has been maintaining the operational business of BOWE SYSTEC. There is a works meeting planned for Sept. 1 where the Swiss investor will present its strategy for BOWE SYSTEC to the employees in Augsburg. Production is due to begin again at BOWE SYSTEC, the leading supplier of complete solutions for processing large volumes of post, when the works holidays end on Sept. 1, 2010. Following a thorough legal examination of the transaction, the buyers do not anticipate any concerns from the cartel office regarding the acquisition of BOWE SYSTEC. The existing North American business of BOWE SYSTEC is not included in the sale package for the time being. However, Axentum has been granted an option to acquire the shares of BOWE BELL HOWELL (BBH), the North American subsidiary of BOWE SYSTEC. About BOWE SYSTEC BOWE SYSTEC claims to be the European market leader in mailroom systems. While the public corporation (AG) affected by the insolvency employs around 600 people, the group has around 3,300 employees worldwide. In 2009 the Group generated consolidated revenues of EUR367.1 million, which was 13.5% down on the previous year as a result of the recession. Although the new top management of BOWE SYSTEC AG has introduced dramatic restructuring measures since early 2009, the company had to file for insolvency by mid- May because it lacked a sound financing concept. =========== G R E E C E =========== ATTIKAT SA: Files for Creditor Protection ----------------------------------------- Tim Farrand at Bloomberg News, citing an Athens bourse filing, reports that Attikat SA filed for creditor protection as it faces liquidity problems on delayed payments arising from Greece's economic crisis. According to Bloomberg, Attikat said in the filing it will begin "immediate" discussions with its creditors and present a business and debt restructuring plan. Attikat SA is a Greece-based construction company mainly engaged in the public works sector. Its principal activity is the construction of roads, tunnels and bridges, railway, sewage network, dams and buildings, including housing complexes, sport facilities and hospitals. * GREECE: Faces "Substantial" Default Risk, Fund Manager Says ------------------------------------------------------------- Josiane Kremer at Bloomberg News reports that Pacific Investment Management Co. fund manager Andrew Bosomworth said Greece still faces a "substantial" default risk as insolvency prevents the nation from repaying its debt when its bailout program expires in three years. "Greece is insolvent," Bloomberg quoted Mr. Bosomworth, Munich- based head of portfolio management at Pimco, which oversees the world's largest bond fund, as saying in a telephone interview on Monday. "I see it as being quite a substantial risk that Greece eventually defaults or restructures." According to Bloomberg, Mr. Bosomworth said in a best-case scenario, Greece's government debt will swell to 150% of gross domestic product. Mr. Bosomworth, as cited by Bloomberg, said the European Union-led rescue package assumes the Athens-based government will tap investors for EUR82 billion (US$106 billion) during the life of the bailout program, "and that's I think going to be very difficult." "Debt servicing as a share of government revenue will increase substantially, particularly if current yield levels do not decline," Mr. Bosomworth said, according to Bloomberg. ============= H U N G A R Y ============= MALEV ZRT: ILFC to Forbid Use of Airplanes if Fees Not Paid ----------------------------------------------------------- Jan Mainka at The Budapest Times reports that US-based International Lease Finance Corporation, one of Malev's leasing partners, threatened to forbid use of some of the airplanes it owns if outstanding leasing fees were not paid without delay. According to The Budapest Times, four independent sources told weekly Figyelo about the ultimatum, and one informant even revealed that the sum, which if not paid would have kept the Malev planes on the tarmac, was around HUF3 billion (EUR10.59 million). Of the two sources of The Budapest Times one suggested the amount was HUF2 billion and the other HUF2.5 billion, resulting primarily from several unpaid leasing installments. Whatever the amount, it was transferred by the Hungarian state and flight operations continued unaffected, The Budapest Times notes. The case highlights the fact that the company's liquidity problems continue to be severe and its creditors are on edge, The Budapest Times states. Malev Zrt. is the flag carrier and principal airline of Hungary. * HUNGARY: Company Liquidations Up 19.2% in First Eight Months -------------------------------------------------------------- MTI-Econews reports that information compiled by Opten shows liquidation procedures were initiated against 11,512 companies in Hungary during the first eight months of 2010, up 19.2% year on year. The report relates Opten Strategic Director Hajnalka Csorbai noted that liquidation procedures were initiated against more companies in the first eight months of 2010 than during all of 2008, when a total of 11,451 companies underwent liquidation. According to the report, liquidation procedures were initiated against 857 companies in August of this year, up from 576 in August of last year. ============= I R E L A N D ============= ANGLO IRISH: Bailout Won't Bankrupt Ireland, Lenihan Says --------------------------------------------------------- Finbarr Flynn at Bloomberg News reports that Ireland's Finance Minister Brian Lenihan said the bailout of Anglo Irish Bank Corp. won't bankrupt the country and the costs are "manageable." "I was a bit concerned at the suggestion a lot of public opinion believe that Anglo Irish will bankrupt the country," the minister said in an interview with national broadcaster RTE on Monday, according to Bloomberg. "That's simply not the case." Bloomberg relates Mr. Lenihan discussed Anglo Irish with European Union Antitrust Commissioner Joaquin Almunia in Brussels on Monday. The government has injected EUR22.9 billion (US$29.5 billion) into Anglo Irish since the lender's nationalization in January 2009, and Ireland's borrowing costs have risen in the past month on concern that the bailout costs will continue to increase, Bloomberg notes. James O'Brien at IrishCentral.com reports that a poll in the Sunday Independent shows that 73% of Irish people believe that the Anglo-Irish bank crisis will bankrupt the country and bring down the government. As reported by the Troubled Company Reporter-Europe on Sept. 6, 2010, Herald.ie said that the European Commission is growing increasingly concerned about the cost of rescuing Anglo Irish Bank. Herald.ie disclosed officials in Brussels now want clear reassurances that there will be no further escalation in the cost of keeping the bank afloat if they approve its restructuring plan, despite claims made by Anglo chief Mike Aynsley. Mr. Aynsley said that the price of recapitalizing the nationalized lender can be contained at that level of the EUR25 billion plan to restructure the bank's ailing business, according to Herald.ie. It's understood that the commission would not object on competition if the decision was taken to liquidate the bank, Herald.ie noted. Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/-- operates in three core areas: business lending, treasury and private banking. The Bank's non-retail business is made up of more than 11,000 commercial depositors spanning commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. The Company's retail deposits comprise demand, notice and fixed term deposit accounts from personal savers with maturities of up to two years. Non-retail deposits are sourced from commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. In addition, at September 30, 2008, its non-retail deposits included deposits from Irish Life Assurance plc. The Private Bank offers tailored products and solutions for high net worth clients and operates the Bank's lending business in Ireland and the United Kingdom. * * * As reported by the Troubled Company Reporter-Europe on July 23, 2010, the A3/P-1 bank deposit and senior debt ratings as well as the Ba1 dated subordinated debt rating and the Caa2 undated subordinated debt rating of Anglo Irish Bank have been maintained under review for possible downgrade as the key rating driver in Moody's Investors Service's view remains the bank's restructuring plan that is currently waiting EU approval. Moody's said the outlook on the bank's E BFSR, mapping to a Caa1 on the long-term scale, is stable. On April 7, 2010, the Troubled Company Reporter-Europe reported that Fitch Ratings affirmed Anglo Irish Bank Corporation's lower Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'. Fitch affirmed the rating on the bank's Upper Tier 2 subordinated notes at 'CC'. It also affirmed the rating on the bank's Tier 1 notes at 'C'. ============= R O M A N I A ============= * ROMANIA: Real Estate Projects Face Insolvencies ------------------------------------------------- Cristi Moga at Ziarul Financiar, citing BUSINESS CONSTRUCT magazine, reports that real estate mega-projects in Romania are facing insolvencies. According to the report, as there are few funds now for real estate investments, after developers have been under the sign of insolvency in the past year, the next stage could be that of bankruptcies. Colentina is the district with the highest number of frozen projects in Bucharest, the report notes. Banks will no longer rush to turn insolvencies into bankruptcies, but developers also have to find new funding solutions and bring apartment prices at the level where they can find buyers, the report states. =========================== U N I T E D K I N G D O M =========================== BLIGHT AND SCOBLE: Faces Liquidation; 50 Jobs Affected ------------------------------------------------------ BBC News reports that Blight and Scoble will go into formal liquidation at a creditors meeting today, Sept. 8. According to the report, the company, which employed 50 people, said its financial problems had been caused by the difficult trading climate for property developers. Bishop Fleming Chartered Accountants has been appointed as liquidator, the report relates. In a statement the liquidator said: "Due to difficult trading conditions the company ceased to trade on 26 August 2010 and all employees were made redundant at that time." Blight and Scoble was a building firm based in Buckfastleigh. BRITISH AIRWAYS: Still Open to Qantas Merger, CEO Says ------------------------------------------------------ Wendy Pugh at Bloomberg News, citing the Australian Financial Review, reports that British Airways Plc Chief Executive Officer Willie Walsh said he would resume merger talks with Qantas Airways Ltd. if the Australian company was interested. Bloomberg relates Mr. Walsh said in an interview with the newspaper that still there wasn't "any evidence" that Qantas Chief Executive Officer Alan Joyce wanted to pursue a deal at this stage. On Sept. 7, 2010, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that British Airways Plc said it has identified about 12 airlines that would be attractive to International Airlines Group, the company being formed by the U.K. carrier's merger with Iberia Lineas Aereas de Espana SA. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on March 19, 2010, Moody's Investors Service lowered to B1 from Ba3 the Corporate Family and Probability of Default Ratings of British Airways plc; and the senior unsecured and subordinate ratings to B2 and B3, respectively. Moody's said the outlook is stable. This concludes the review that was initiated on November 10, 2009. The rating action reflects Moody's view that credit metrics will not be commensurate with the previous rating category in the medium term. Moody's expect furthermore that metrics will be burdened in the foreseeable future by the company's significant pension deficit, which was at GBP2.6 billion for the APS and NAPS schemes combined as of September 2009 (under IAS). Moody's nevertheless understand that under the current agreement with the trade unions, the cash contributions to these deficits will be frozen at GBP330 million per year for three years, subject to approval by the Pensions Regulator and the trustees. BRITISH AIRWAYS: Unite Mulls Fresh Industrial Action ---------------------------------------------------- Martin Shankleman at BBC News reports that union leaders have warned that BA faces fresh industrial action unless a negotiated settlement is reached to end the long-running dispute. The report relates Brendan Gold, national officer for Unite, said the union would ballot for action "at the right time" because of issues that remain unresolved. BA cabin crew has already staged 22 days of strike action this year, the report discloses. Talks between the two sides ended without agreement last month, the report recounts. According to the report, more than 60 members have been suspended and a further 13 sacked. Unite is calling for the restoration of travel concessions removed from strikers, and the end of what it claims to be the victimization of union members, the report says. The report notes BA said it had concluded disciplinary hearings into 65 cabin crew -- 49 had returned to work and 16 had been sacked. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on March 19, 2010, Moody's Investors Service lowered to B1 from Ba3 the Corporate Family and Probability of Default Ratings of British Airways plc; and the senior unsecured and subordinate ratings to B2 and B3, respectively. Moody's said the outlook is stable. This concludes the review that was initiated on November 10, 2009. The rating action reflects Moody's view that credit metrics will not be commensurate with the previous rating category in the medium term. Moody's expect furthermore that metrics will be burdened in the foreseeable future by the company's significant pension deficit, which was at GBP2.6 billion for the APS and NAPS schemes combined as of September 2009 (under IAS). Moody's nevertheless understand that under the current agreement with the trade unions, the cash contributions to these deficits will be frozen at GBP330 million per year for three years, subject to approval by the Pensions Regulator and the trustees. CALYX GROUP: In Administration; FRP Advisory Seeks Buyer -------------------------------------------------------- The Calyx Group and its subsidiaries were placed into administration on Sept. 3 with the appointment to the UK and Northern Ireland entities of Joint Administrators Geoff Rowley and Phil Armstrong, partners at FRP Advisory LLP, the restructuring, recovery and insolvency firm. The Irish entities within the Calyx Group have been placed into receivership, with the appointment of Tom Kavanagh of Irish insolvency practice, KavanaghFennell. No redundancies have been made and the group, which supplies managed ICT services from operations in the UK and Ireland, will be traded as a going-concern while a buyer of the business and assets is sought in very short order. Commenting on the case, Geoff Rowley said: "Though Calyx Group has an annual turnover of around GBP75 million; it was carrying a debt on the balance sheet in excess of the annual turnover. The group went into administration after it was unable to repay a secured creditor." Calyx Group employs more than 500 staff based in the UK, Northern Ireland and Ireland. The business has been trading under the Calyx brand since 2002, following the management buy-out of the voice, data and training businesses of Alphyra Plc. Calyx floated on AIM in 2004, but the group was taken into private ownership again in 2007. "The group has a solid reputation and a good customer base," continues Mr. Rowley, "as such we're hopeful of finding a trade buyer. While we undertake this exercise, the business will continue to run as normal, with no interruption to customer service." Interested parties in the UK business and assets should contact Alastair Massey, FRP Advisory, on +44 (0)207 467 4279. Interested parties in the Irish business and assets should contact Tom Kavanagh, KavanaghFennell on +353 (0)1 206 0800. RAB CAPITAL: CEO Stephen Couttie Steps Down ------------------------------------------- Sam Jones at The Financial Times reports that Stephen Couttie has resigned as chief executive of RAB Capital, raising fresh questions over the future of the beleaguered hedge fund. The FT says the move is the latest setback to blight the FTSE- listed group, which has been struggling to recover from a near- disastrous collapse in assets as a result of the financial crisis. According to the FT, Charles Kirwan-Taylor, RAB Capital's chief investment officer, is to take over Mr. Couttie's role. The FT relates at its peak in 2007, RAB Capital was one of the City of London's most successful hedge funds, with more than US$7 billion (GBP4.6 billion) under management and a track record of stellar annual returns for investors. Collapsing confidence in markets and a series of ill-timed investments, including an 8% stake in the doomed Northern Rock, hit hard and prompted a wave of investor redemptions that saw RAB Capital's assets shrink to a total of about US$1.2 billion, the FT discloses. RAB Capital plc -- http://www.rabcap.com-- is a United Kingdom- based company. The Company is the parent company of a specialist investment management group (the Group). The wholly owned subsidiaries of the Company are RAB Partners Limited, RAB Capital (Asia) Limited, 2006 Acquisition Limited, Cross Asset Management Limited, I2S Limited and Leumas (Jersey) Limited. The principal activities of its subsidiaries include provision of investment management and investment advisory services. In June 2009, the Company announced that it does not hold any interest in African Eagle Resources plc. In July 2009, the Company held 54.37% in RAB Innovations Fund Limited. =============== X X X X X X X X =============== * EUROPE: Ailing State Should Not Be Bailed Out, Slovak PM Says --------------------------------------------------------------- CTK reports that Slovak Prime Minister Iveta Radicova told The Wall Street Journal on Sept. 2 that overly indebted countries should be forced into bankruptcy, not bailed out. According to the report, Ms. Radicova said the so-called stability fund set up this year in case a European country needs financial rescue, is likely to cause more problems than it will solve. The report relates Ms. Radicova, as cited by WSJ, said the EU needs to overhaul its institutions so it can prevent crises like the one that enveloped Greece. She said the euro zone needs to create "an orderly bankruptcy process" for nations that default on debts, according to the report. ********* 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 * * *