/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/101110.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, November 10, 2010, Vol. 11, No. 222 Headlines G E R M A N Y DECO 15: Fitch Affirms Rating on Class E Notes at 'CC' PROMISE-I MOBILITY: Moody's Reviews Ratings on Various Notes I C E L A N D * ICELAND: Investor Group Threatens Legal Action Over Failed Banks I R E L A N D IRISH LIFE: Moody's Corrects Rating on EUR50 Mil. Floating Notes KESTREL FUNDING: S&P Affirms 'CC' Rating on Capital Notes MCINERNEY HOMES: Under Court Protection for Another Month TBS INT'L: Unveils Q3 Results; Forbearance Expires Nov. 14 * IRELAND: One Restaurant Shuts Down Each Day * IRELAND: Four Belfast Law Firms Join Nama Advisory Panel * IRELAND: NAMA Stops Banks From Filing Insolvency v. Developers N E T H E R L A N D S SENSATA TECHNOLOGIES: To Buy Honeywell's Sensors Biz for US$140MM S P A I N CAJASUR: Restructuring Aid Wins European Union Approval S W E D E N BORAS WAFVERI: Goes Into Liquidation; 500 Jobs at Risk U N I T E D K I N G D O M BAA SH: Moody's Assigns 'Ba3' Rating to Senior Secured Notes CREST NICHOLSON: May Face Second Round of Loan Writedowns EMI GROUP: May Attract Bids From BMG Rights & Warner Music NIGHTINGALE FINANCE: S&P Affirms 'CC' Rating on Capital Notes R.B. FARQUHAR: Companies Vying to Take Over Firm ROK PLC: Mears Eyes Social Housing Business ROK PLC: Dundee Workers Assured They Will Get Paid ROK PLC: Administration Affecting Work on Trowbridge Civic Hall ROYAL BANK: Posts GBP1.4 Billion Pre-Tax Loss in Qtr. Ended Sept. SPICERS: Inability to Finance Debts Spurs Voluntary Liquidation * UK: Banks Expect Rise in Small Business Insolvencies Next Year X X X X X X X X * EUROPE: Bank Bail-Ins Dangerous & Unworkable, Rabobank Says * Moody's: Global Default Rate Falls to 3.7% in October * S&P's 2010 Global Corporate Defaults Tally Now at 73 ********* ============= G E R M A N Y ============= DECO 15: Fitch Affirms Rating on Class E Notes at 'CC' ------------------------------------------------------ Fitch Ratings has affirmed DECO 15 - Pan Europe 6 Ltd, a commercial mortgage-backed securitization. The rating actions are; -- EUR622.0m class A1 due July 2014 (XS0307398841) affirmed at 'AAA'; Outlook Stable -- EUR294.0m class A2 due July 2014 (XS0307400258) affirmed at 'AA'; Outlook revised to Stable from Negative -- EUR147.0m class A3 due July 2014 (XS0307400506) affirmed at 'A'; Outlook revised to Stable from Negative -- EUR86.1m class B due July 2014 (XS0307401140) affirmed at 'BBB-'; Outlook revised to Stable from Negative -- EUR87.6m class C due July 2014 (XS0307405133) affirmed at 'B'; Outlook Negative -- EUR56.8m class D due July 2014 (XS0307405729) affirmed at 'CCC'; assigned Recovery Rating 'RR5' -- EUR21.5m class E due July 2014 (XS0307406453) affirmed at 'CC'; assigned Recovery Rating 'RR6' The affirmation and Stable Outlooks on the class A1 to B notes reflect the relatively stable collateral performance since the last review in October 2009, despite three of the loans being in breach of their debt service coverage ratio triggers. The portfolio benefits from above-average interest coverage: the weighted-average A-note interest coverage ratio has improved to 1.6x from 1.4x at closing. The Negative Outlook on the class C notes is driven by continued balloon risk. Approximately 80% of the portfolio is due to mature in 2014, leaving the transaction exposed to refinancing conditions at that point. In addition, five of the ten loans have a Fitch A- note loan-to-value in excess of 100%. The presence of B-notes in four of the loans further increases leverage. The CentrO loan accounts for 56% of the portfolio and is secured by a super-regional shopping centre located in Oberhausen, in western Germany. Loan performance has been stable since closing, mainly as a result of the length of the leases that are in place. 30% of rental income is scheduled to expire by end-2012; however, a EUR5.2 million reserve was put in place at closing to mitigate potential interest shortfalls. Given the high quality of the centre, Fitch expects that a significant proportion of the space will either be renewed or relet. As 75% of all surplus cash is used to amortize the A-note, Fitch expects the exit position to improve significantly from the current 100% Fitch LTV by loan maturity in October 2014. PROMISE-I MOBILITY: Moody's Reviews Ratings on Various Notes ------------------------------------------------------------ Moody's Investors Service has placed under review for possible downgrade the ratings of 23 classes of notes issued by 4 Promise-I Mobility transactions and the rating of 1 credit default swap between KfW and Promise-I Mobility 2006-1. The 4 transactions are synthetic balance sheet collateralized loan obligations of senior corporate loans to borrowers mainly incorporated in Germany. All loans were originated by IKB Deutsche Industriebank AG. The affected notes and credit default swap are listed below: Issuer: Promise-I-Mobility 2005-1 plc -- EUR27.8M A Notes, A1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to A1 (sf) -- EUR8.3M B Notes, Baa2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Baa2 (sf) -- EUR7.5M C Notes, Ba1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Ba1 (sf) -- EUR5.3M D Notes, B1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to B1 (sf) -- EUR5.3M E Notes, Caa1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Caa1 (sf) The Aaa rating of class A+ issued under Promise-I Mobility 2005-1 was not put on watch for possible downgrade given the short weighted average life of that tranche (0.6 year) and the strengthening of its credit enhancement following the substantial amortization of the portfolio. Issuer: PROMISE-I Mobility 2005-2 PLC -- EUR0.5M Class A+ Floating Rate Credit Linked Notes Notes (currently EUR 0.2M outstanding), Aaa (sf) Placed Under Review for Possible Downgrade; previously on Dec 19, 2005 Definitive Rating Assigned Aaa (sf) -- EUR54.9M Class A Floating Rate Credit Linked Notes Notes, A3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to A3 (sf) -- EUR21.6M Class B Floating Rate Credit Linked Notes Notes, Baa3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Baa3 (sf) -- EUR22.5M Class C Floating Rate Credit Linked Notes Notes, Ba2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Ba2 (sf) -- EUR21.6M Class D Floating Rate Credit Linked Notes Notes, B2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to B2 (sf) -- EUR14.4M Class E Floating Rate Credit Linked Notes-2 Notes, Caa2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Caa2 (sf) Issuer: IKB Promise-I Mobility 2006-1 GmbH -- EUR2159.5M Credit Derivative Transaction, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Dec 18, 2006 Definitive Rating Assigned Aaa (sf) -- EUR0.5M Class A+ Notes, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Dec 18, 2006 Definitive Rating Assigned Aaa (sf) -- EUR67.2M Class A Notes, A3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to A3 (sf) -- EUR21.6M Class B Notes, Baa3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Baa3 (sf) -- EUR36M Class C Notes, Ba2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Ba2 (sf) -- EUR46.8M Class D Notes, Caa1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Caa1 (sf) -- EUR10.8M Class E Notes, Caa3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Caa3 (sf) Issuer: Promise-I Mobility 2008-1 GmbH -- EUR0.5M A1+ Notes (currently EUR 0.3M outstanding), Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 26, 2008 Assigned Aaa (sf) -- EUR0.5M A2+ Notes, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Aa3 (sf) -- EUR16.9M B Notes, Baa1 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Baa1 (sf) -- EUR11.7M C Notes, Baa3 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Baa3 (sf) -- EUR15.1M D Notes, Ba2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to Ba2 (sf) -- EUR13.5M E Notes, B2 (sf) Placed Under Review for Possible Downgrade; previously on May 12, 2009 Downgraded to B2 (sf) This review is mainly driven by: 1) the deterioration of the asset pools reflected in the occurrence of additional credit events, delinquencies and negative credit migration since the last rating actions in May 2009 as evident from the latest investor reports and 2) the revision of IKB's internal rating scale and process used to assess the creditworthiness of SME borrowers. In order to assess the default probabilities of each of the borrowers in the pools, Moody's relies on the internal credit scores assigned to each borrower by IKB as originator of the transactions. Following the recent revision by IKB of its internal credit score scale which provides a more detailed assessment of credit risk levels, Moody's is currently revisiting the way IKB's internal credit scores are translated into Moody's idealized default probabilities (a mapping). Moody's anticipates that the greater conservativeness embedded in IKB's revised credit scores will map to higher Moody's default probabilities and therefore could have a negative impact on the ratings of the notes. Moody's expects to resolve its review in the coming weeks following the completion by Moody's of the credit mapping based on IKB's recently revised internal rating scale. ============= I C E L A N D ============= * ICELAND: Investor Group Threatens Legal Action Over Failed Banks ------------------------------------------------------------------ Simon Goodley at guardian.co.uk reports that the Icelandic government has been threatened with legal action by a group of investors in the country's crippled banking system, in a move that could delay efforts to recoup billions of pounds of UK taxpayer funds held on the island. The report relates bondholders in the three main collapsed banks -- Landsbanki, Kaupthing and Glitnir -- were relegated behind depositors in the queue of creditors as part of emergency legislation in 2008, which in effect nationalized the Icelandic banking system. According to the report, the group argues that the government's move was unlawful and any litigation could frustrate the Treasury's efforts to persuade Iceland to reimburse the compensation it paid to British savers after the collapse of Landsbanki's Icesave internet brand. The threat could also hamper efforts by UK local authorities to recoup millions in council tax revenues deposited with Landsbanki and Glitnir, the report notes. "We may be forced to sue Iceland to reverse 'depositor priority'. The assumptions that inform any Icesave deal then may all go out the window, and any deal to pay the UK would no longer work. We think our cause of action is strong, though it would likely drag through the courts for a lot of years, which itself would be damaging for Iceland," the report quoted Tim DeSieno, a partner at Bingham McCutchen, the US law firm representing the bondholders, as saying. The report says while Mr. DeSieno may be preparing a negotiating position, he represents a group of about 100 heavyweight ins titutions made up of international investors, pension funds and banks. The 84% taxpayer-owned Royal Bank of Scotland is thought to be among the group, the report states. ============= I R E L A N D ============= IRISH LIFE: Moody's Corrects Rating on EUR50 Mil. Floating Notes ---------------------------------------------------------------- Moody's Investors Service has corrected the rating of the EUR50 million Subordinate Floating Rate Notes due November 7, 2016, issued by Irish Life & Permanent plc from A3 to Ba3. This particular security is an issuance under the issuer's EUR15bln Euro Medium Term Note Programme and was rated by Moody's on 8 November 2006. Moody's originally misclassified this instrument as senior unsecured. Based on a review of the terms, the instrument has been reclassified as a subordinate note and the rating has been corrected to Ba3. The corrected rating history for the re-classified note is: * 11/08/2006 -- A2 rating assigned * 4/20/2007 -- A2 rating upgraded to A1 * 2/17/2009 -- A1 rating downgraded to A2 * 6/4/2009 -- A2 rating placed on watch for possible downgrade * 7/7/2009 -- A2 rating downgraded to A3 * 7/21/2010 -- A3 rating downgraded to Baa1 * 10/6/2010 -- Baa1 rating downgraded to Ba3. The last rating action was on October 6, 2010, when the backed-Aa2 government guaranteed debt rating and the A3 long-term bank deposit and senior debt ratings were placed on review for possible downgrade, the dated subordinated debt rating was downgraded to Ba3 from Baa1 and the undated subordinated debt rating was downgraded to B1 from Ba3. KESTREL FUNDING: S&P Affirms 'CC' Rating on Capital Notes --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its issuer credit ratings and senior liability ratings on the structured investment vehicles listed below, following a review. At the same time, S&P affirmed the ratings on the capital notes listed below. The rating affirmations follow S&P's assessment of the support arrangements of each SIV. In each case, the SIV's ICR and senior liabilities ratings are linked to the rating on the relevant support provider, which has not changed. At the same time, S&P has affirmed the 'CC' rating on the capital notes to reflect S&P's opinion of the likelihood of their repayment. The relevant support arrangements do not include the repayment of capital notes, and S&P is of the view that the capital notes are highly vulnerable to nonpayment. S&P has also published more information on the support arrangements of the vehicles affected by these rating actions. Ratings Affirmed Centauri Corp. ICR A+/Negative/A-1 CP A-1 MTN A+ CC (USA) Inc. ICR A+/Negative/A-1 CP A-1 MTN A+ Five Finance Corp. ICR A+/Negative/A-1 CP A-1 MTN A+ Five Finance Inc. CP A-1 MTN A+ Links Finance Corp. ICR A+/Stable/A-1 CP A-1 MTN A+ Links Finance LLC ICR A+/Stable/A-1 CP A-1 MTN A+ Parkland Finance Corp. ICR A+/Stable/A-1 CP A-1 MTN A+ Parkland (USA) LLC CP A-1 MTN A+ Harrier Finance Funding Ltd. ICR BBB+/Negative/A-2 CP A-2 MTN BBB+ Harrier Finance Funding (U.S.) LLC CP A-2 MTN BBB+ Kestrel Funding PLC ICR BBB+/Negative/A-2 CP A-2 MTN BBB+ Capital notes CC Nightingale Finance Ltd. ICR A-/Negative/A-1 CP A-1 MTN A- Capital notes CC Nightingale Finance LLC CP A-1 MTN A- ICR -- Issuer credit rating. CP -- Commercial paper. MTN -- Medium-term notes. MCINERNEY HOMES: Under Court Protection for Another Month --------------------------------------------------------- The Irish Times reports that McInerney Homes will remain under the High Court's protection from its creditors, including a three-bank syndicate to which it owes EUR115 million, for another four weeks. The report relates that the court continued court protection for McInerney Homes and a number of related group companies until December 3, 2010. According to The Irish Times, Justice Frank Clarke said he was extending the period of examinership with "considerable reluctance". The report relates Justice Clarke had not concluded there was no realistic chance of the examiner coming up with a survival scheme which could succeed. It might be possible that the examiner, Bill O'Riordan of PricewaterhouseCoopers, could come up with a better scheme if examinership was extended, he added. The Irish Times notes that a report from Lisney's indicates that the group's properties and work in progress are worth between EUR25 million and EUR30 million. The Irish Times relates that this is against EUR40 million when the group first had an examiner appointed and was placed under court protection in August. The report notes that Lisney's calculation is based on what it believes the properties would be worth in a situation where they were being sold in a liquidation or receivership, and not as a going concern. The group, The Irish Times says, owes EUR115 million to a syndicate of three banks -- KBC, Bank of Ireland and Anglo Irish -- which is opposed to the examinership. The Irish Times discloses that U.S. private equity house Oaktree Capital is poised to take a stake in the group, which has businesses in the Republic and England, for EUR40 million. It is committed to investing at least EUR10 million in the Irish operation, the report relates. Justice Clarke, The Irish Times posts, said that the key question on whether court protection should be continued was whether any proposed survival scheme would be unfair to the syndicate of banks. The report relates that the court was told a survival plan would be ready by Friday and there would be a meeting of McInerney's creditors on November 19, 2010. Once the examiner's plan has the backing of at least one group of creditors whose rights are being affected, it can then go to the High Court for approval, The Irish Times says. McInerney Homes is an Irish housebuilder. TBS INT'L: Unveils Q3 Results; Forbearance Expires Nov. 14 ---------------------------------------------------------- TBS International plc reports that for the third quarter ended September 30, 2010, total revenues were US$99.8 million, an increase of 34.3% compared to total revenues of US$74.3 million for the same period in 2009. Net loss for the third quarter 2010 was US$10.4 million, after loss attributable to the non- controlling interests, which is an improvement of 42.5% compared to an US$18.1 million loss for the same period in 2009. For the nine months ended September 30, 2010, total revenues were US$311.1 million, an increase of 42.9% compared to the US$217.7 million for the same period 2009. Net loss for the nine months 2010 was US$27.9 million, after loss attributable to the non- controlling interests, which is an improvement of 50.4% compared to a loss of US$56.3 million for the same period in 2009. Net loss for the nine months ended September 30, 2010 reflects a US$5.2 million loss on the sale of the M/V Savannah Belle and a US$5.9 million expense for non-cash equity compensation. At September 30, 2010, TBS had total assets of US$906.794 million, total debt, including current portion of US$328.259 million, and shareholders' equity of US$513.154 million. TBS had working capital deficit of US$297.663 million at September 30. A copy of TBS's earnings release dated November 8 is available at http://is.gd/gQRTf On October 1, 2010, TBS said it has entered into forbearance agreements with its lenders expiring on November 14, 2010. As a result, during this 45-day period, TBS will not be making the principal payments due on such facilities. The lenders have agreed to forbear from exercising their rights and remedies that arise from the failure to make these principal payments when due. TBS is in discussions with its banks to restructure the repayment terms of certain facilities and modify its loan covenants. During the forbearance period, TBS has continued to operate its business as usual, including paying vendors and paying interest on debt. About TBS International Based in Dublin, Ireland, TBS International plc -- http://www.tbsship.com/-- is a fully-integrated transportation service company that provides worldwide shipping solutions to a diverse client base of industrial shippers. Through the TBS Five Star Service consisting of ocean transportation, operations, logistics, port services, and strategic planning, TBS offers total project coordination and door-to-door supply chain management. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize and handymax bulk carriers, including specialized heavy- lift vessels and newbuild tonnage. TBS has developed its business around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East. * IRELAND: One Restaurant Shuts Down Each Day --------------------------------------------- The Sunday Business Post Online reports that on average one Irish restaurant is closing its doors each day. According to the report, the Restaurants Association of Ireland fear more could close if something is not done. The report notes it also said the closures could cost Ireland's economy dearly, resulting in a EUR700 million loss. * IRELAND: Four Belfast Law Firms Join Nama Advisory Panel ---------------------------------------------------------- Four Belfast law firms have been appointed to the panel of lawyers providing advice to the Irish government's National Asset Management Agency (Nama), BBC News reports. The law firms are: -- Carson McDowell, -- Tughans, -- CH Jefferson, and -- John McKee and Son. According to the report, they will advise Nama on enforcement proceedings, such as receivership and refinancing. Nama, the report notes, was set up to rescue the ailing Irish banks by buying, at a discount, all their major property loans. In Northern Ireland the agency will be buying loans with an original value of more than GBP3 billion, relating to more than 100 firms or individuals, BBC reports. BBC discloses that Nama has a relatively small staff so will be spending hundreds of millions of euros on advisers and consultants. The report notes in addition to the law firms several other Belfast-based companies are already providing services to the agency. Keenan Corporate Finance, BBC notes, is one of the firms helping to assess the business plans put forward by developers. Valuations, in what Nama calls the Ulster area, are being carried out by property agents BTW Shiells, Osborne King, Frazer Kidd and Colliers CRE, the report adds. * IRELAND: NAMA Stops Banks From Filing Insolvency v. Developers ---------------------------------------------------------------- InsolvencyJournal.ie, citing the Sunday Business Post's James Enright, reports the National Asset Management Agency has stopped the banks from filing for insolvency against property developers in 15 cases. InsolvencyJournal.ie relates NAMA's chairman, Frank Daly, as cited by The Business Post, said that the agency prefers to work with developers because they have "expertise and experience" which "can add value to the business," and this is what NAMA is "expected to do for the taxpayer." InsolvencyJournal.ie notes the chairman added that the threat of insolvency is often enough to get people to "engage realistically" with NAMA. According to InsolvencyJournal.ie, Business Post said the transfer of all loans from financial institutions to NAMA will be completed in the next six or seven weeks. ===================== N E T H E R L A N D S ===================== SENSATA TECHNOLOGIES: To Buy Honeywell's Sensors Biz for US$140MM ----------------------------------------------------------------- Sensata Technologies Holding N.V. has reached a definitive agreement to acquire the "Automotive on Board" sensors business of Honeywell International for $140 million in cash. "This acquisition further expands our leadership in the global automotive sensors market and complements our already strong organic growth in the powertrain segment for our existing pressure products," said Tom Wroe, Sensata Technologies Chairman and Chief Executive Officer. "It also adds new capabilities in light vehicle speed and position sensing and builds Sensata's market share in Asia -- specifically in China, the world's fastest growing automotive sensors market." Sensata expects to fund the purchase from available cash resources and anticipates that this transaction will be neutral to 2010 earnings, excluding transaction costs in the range of $3-4 million that will be incurred in Q4 2010. The transaction, which is subject to regulatory review, is expected to close in early 2011. It is expected that the acquisition will contribute to both revenue and Adjusted Net Income growth in 2011 and beyond. The Automotive on Board sensors business has annual sales of approximately $130 million. "We believe this purchase represents a strategic use of our cash on-hand and meets all our strategic and investment return criteria," said Sensata Technologies Chief Financial Officer Jeff Cote. "We expect to realize synergies on the integration activities over 18 to 24 months." About Sensata Almelo, Netherlands-based Sensata Technologies B.V. -- http://www.sensata.com/-- supplies sensing, electrical protection, control and power management solutions. Majority- owned by affiliates of Bain Capital Partners, LLC, a leading global private investment firm, and its co-investors, Sensata employs approximately 9,500 people in nine countries. Sensata's products improve safety, efficiency and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning, data, telecommunications, recreational vehicle and marine applications. As reported by the TCR on December 7, 2009, Moody's Investors Service has upgraded Sensata Technologies B.V.'s Corporate Family and Probability of Default ratings to Caa1 from Caa2, as well as the company's senior secured credit facility to B2, senior unsecured notes to Caa2, and senior subordinated notes to Caa3. In a related rating action, Moody's affirmed the Company's Speculative Grade Liquidity rating at SGL-3. The outlook is positive. The TCR on Nov. 4, 2009, said that Standard & Poor's affirmed the ratings on Attleboro, Massachusetts-based Sensata Technologies, Inc., including the 'CCC+' corporate credit rating. At the same time, S&P revised the outlook on the company to stable from negative. Standard & Poor's Ratings Services raised its ratings on sensors and controls manufacturer Sensata Technologies B.V., including the corporate credit rating, to 'B+' from 'B'. The outlook is positive. Moody's Investors Service has upgraded Sensata Technologies B.V.'s Corporate Family and Probability of Default ratings to B2 from B3. In a related action, the company's senior secured credit facility was affirmed B1, senior unsecured notes affirmed Caa1, and senior subordinated notes upgraded to Caa1 from Caa2. Moody's also upgraded the company's Speculative Grade Liquidity rating to SGL-2 from SGL-3. The rating outlook is positive. Moody's Investors Service said that Sensata Technologies B.V. B2 Corporate Family Rating and positive outlook remain unchanged following the announcement of its public holding company, Sensata Technologies Holding N.V., that it has reached a definitive agreement to acquire the "Automotive on Board" sensors business of Honeywell International for US$140 million in cash. ========= S P A I N ========= CAJASUR: Restructuring Aid Wins European Union Approval ------------------------------------------------------- Aoife White at Bloomberg News reports that CajaSur's restructuring aid and sale to Bilbao Bizkaia Kutxa won European Union approval. Bloomberg relates the European Commission said Monday in an e-mailed statement that it was satisfied that the Spanish government's capital injection of EUR800 million (US$1.1 billion), loan guarantees and a liquidity line was compensated by an asset sale and restructuring that "ensures the viability of the banking activity and limits the distortions of competition." As reported by the Troubled Company Reporter-Europe on May 25, 2010, The Financial Times said that the Bank of Spain seized control of CajaSur after the savings bank failed to reach agreement on a merger with Unicaja, another savings bank, despite an ultimatum from the central bank. The FT disclosed the Bank of Spain said CajaSur was seized because it had "viability problems" and because of the failure to agree the deal with Unicaja. CajaSur is a savings bank previously run by Roman Catholic priests in Cordoba. =========== S W E D E N =========== BORAS WAFVERI: Goes Into Liquidation; 500 Jobs at Risk ------------------------------------------------------ Boras Wafveri, the Swedish textile company running the 153-year- old Kreenholm textile factory, is going into liquidation, Fibre2fashion News reports. According to Fibre2fashion, the company recently announced that it is filing for bankruptcy for its Narva subsidiary, Kreenholmi Valduse AS, which could render around 500 employees jobless. Fibre2fashion News relates that the factory is still running at loss, despite adopting cost-cutting measures. Fibre2fashion News says that increasing cotton prices and decreasing orders are the key issues which are creating trouble for the company. The company had a loss of EUR3.3 million in the year 2007 and EUR50,000 in 2008. Kreenholm textile factory was established in the year 1857 and became nationalized during the Soviet period. In the year 1980, it had employed over 11,000 workers and had been among the largest enterprises in northeast Estonia. =========================== U N I T E D K I N G D O M =========================== BAA SH: Moody's Assigns 'Ba3' Rating to Senior Secured Notes ------------------------------------------------------------ Moody's Investors Service has assigned a definitive Ba3 rating to the GBP325 million 7.125% Senior Secured Notes due 2017 to be issued by BAA (SH) plc. In addition Moody's has assigned a definitive Ba1 Corporate Family Rating, and a definitive Ba2 Probability of Default Rating to BAA SH. The 35% Family-wide Loss Given Default assumption applying to BAA SH, and the LGD-5 (85%) Loss given default assessment assigned to the BAA SH Notes are affirmed. The rating outlook is stable. The above definitive ratings confirm the prospective ratings assigned on 27 October 2010. Ratings Rationale The Ba1 Corporate Family Rating of BAA SH reflects a Probability of Default Rating of Ba2 and a 35% Family-wide Loss Given Default assumption. The Corporate Family Rating is an opinion of the BAA SH group's ability to honor its financial obligations and is assigned to BAA SH as if it had a single class of debt and a single consolidated legal structure. The Ba3 / LGD5(85%) rating of the BAA SH Notes reflects the structural subordination of the BAA SH Notes in the BAA SH group structure. The only asset of BAA SH is its shares in BAA (SP) Limited, whch in turn owns London Heathrow Airport, and London Stansted Airport. The BAA SP group is financed via debt provided through a ring- fenced secured debt financing structure. BAA SP can only service debt at BAA SH if it complies with the financial terms of the BAA ring-fenced secured debt financing structure. BAA SH debt in turn benefits from a security interest in its ownership of BAA SP. BAA SH's Ba1 Corporate Family Rating reflects (i) BAA SP's ownership of LHR, which is one of the world's most important hub airports and the largest European airport, (ii) the relatively resilient traffic characteristics of LHR which together with the STN traffic profile affords some portfolio benefits, (iii) the long established framework of economic regulation that pertains to LHR which will evidence some changes but which is not expected to be fundamentally altered, (iv) the significant capital expenditure program at LHR, (v) the debt levels carried by the BAA SH group together with the features of the BAA ring-fenced secured debt financing structure which puts certain constraints around management activity, and (vi) the protective features of the BAA SH Notes which effectively limits BAA SH's activities to its investment in BAA SP. The rating outlook is stable. This reflects Moody's expectation that BAA's London airports will see a modest recovery in business volumes, and that the capital expenditure program will continue to be managed effectively to accommodate the ramp up in work at LHR over the coming few years, both of which should ensure a financial profile in line with the current rating category. The outlook further assumes that BAA SP will continue to manage its debt raising program in a way that minimizes refinancing risk and allows it to comfortably meet new funding requirements. Although there is headroom under the BAA SH debt documentation to increase indebtedness at the BAA SH level, this is not expected to materialize over the time horizon of the rating. The Corporate Family Rating and rating of the BAA SH Notes could move up if the BAA SH group were to exhibit a financial profile that evidenced materially lower leverage than currently expected. This could be suggested by a Net Debt to RAB ratio likely to be permanently below 80% and an Adjusted Interest Cover Ratio of permanently more than 1.2 times. The Corporate Family Rating and rating of the BAA SH Notes could move down if the BAA SH group were to exhibit a financial profile that evidenced materially higher leverage than currently expected. This could be suggested by a Net Debt to RAB ratio consistently in the high 80s and an Adjusted Interest Cover Ratio of less than 1.0 times. A sale of Stansted Airport, if required, would not likely cause a downwards move in the rating. CREST NICHOLSON: May Face Second Round of Loan Writedowns --------------------------------------------------------- Ed Hammond and Anousha Sakoui at The Financial Times report that lenders to Crest Nicholson are facing the prospect of a second round of writedowns on the value of their loans as concerns about a double-dip recession dog the property market. According to the FT, the proposed debt-for-equity swap, which has been tabled by Varde, the US investment fund that holds a third of the housebuilder's debt, would leave lenders holding about 15% -- or GBP175 million (US$282 million) -- of the original GBP1.1 billion in loans made to the company. The FT says Varde's proposal would see roughly half of the GBP350 million of senior debt swapped for equity and the balance -- GBP150 million of subordinated debt -- wiped out. The restructuring would represent a severe "haircut" for the lenders and there is understood to be some discord among the group, which includes HSBC and Allied Irish Banks, about how much of the debt should be written off, the FT states. It is understood that a potential alternative option is being discussed between a leading committee of the lenders, Crest and Varde -- which has acquired 35% of Crest's debt in the past few months, including the entire 29% stake held by Lloyds Banking Group, the FT notes. That option would involve lenders being offered a cash pay-out equivalent to about 60 pence in the pound on their entire debt claim, the FT says, citing people with knowledge of the talks. Under the cash exit, the senior debt claims of lenders would be repaid almost in full, according to the FT. Crest Nicholson -- http://www.crestnicholson.com/-- is a residential development company with property interests primarily in central and southern England. The firm focuses on developing sustainable master-planned communities and mixed-use developments, along with urban regeneration and commercial property developments. EMI GROUP: May Attract Bids From BMG Rights & Warner Music ---------------------------------------------------------- Kristen Schweizer and Anne-Sylvaine Chassany at Bloomberg News report that EMI Group Ltd. may attract bids from BMG Rights and Warner Music Group Corp. after owner Guy Hands' defeat in a court battle raised speculation he will come under pressure to sell assets. Bloomberg says Warner and BMG Rights are among companies that have expressed an interest in buying EMI's publishing and recorded assets. Bloomberg relates EMI, a 110-year-old record company, held talks with rival record labels and private equity firms earlier this year about selling off assets as its loan repayments neared. If Hands's Terra Firma Capital Partners Ltd., which controls EMI, can't pay its debts, creditor Citigroup Inc. could seize control, Bloomberg notes. "The next breach of covenant, which is probably imminent, will lead to Citi taking over EMI," said Claire Enders, chief executive officer of Enders Analysis Ltd., a London-based music and entertainment industry research firm, according to Bloomberg. "There was no pot of money gained in this lawsuit." As reported by the Troubled Company Reporter-Europe on Nov. 8, 2010, The Financial Times said Citigroup won its courtroom battle with Terra Firma's Mr. Hands over the GBP4.2-billion buy-out of EMI in 2007. The FT disclosed a New York jury found unanimously for the bank at the end of a three-week trial that had seen the British private equity investor trade allegations with David Wormsley, the senior Citi figure he once counted as his closest friend and adviser. Terra Firma, as cited by the FT, said it reserved its right to appeal and would focus on securing a financial restructuring of EMI with Citi. The impact on EMI will become clearer over the next five months, as the next test of its ability to meet covenants in its GBP3 billion of loans from Citigroup comes up at the end of March, according to the FT. The FT disclosed the music group has failed these regular tests for the past couple of years, but Mr. Hands has been able to keep control by putting more of his investors' money into the company as "equity cures", allowing the extra cash to be counted as profits. The FT noted it seems unlikely investors will give Mr. Hands more money in March, making it possible that the business will default on its debt and be taken over by its only creditor, Citigroup. If that happens, the bank is expected to seek a rapid sale of EMI, probably by splitting it into two parts: music publishing, with its valuable back catalogue of songs, and recorded music, the loss-making business of producing new music, according to the FT. EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth largest record company in terms of market share (behind Universal Music Group, Sony Music Entertainment, and Warner Music Group). It houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints and divisions such as Capitol Records and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. EMI Music operates through regional divisions (EMI Music North America, International, and UK & Ireland). Private equity firm Terra Firma owns EMI. NIGHTINGALE FINANCE: S&P Affirms 'CC' Rating on Capital Notes ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its issuer credit ratings and senior liability ratings on the structured investment vehicles listed below, following a review. At the same time, S&P affirmed the ratings on the capital notes listed below. The rating affirmations follow S&P's assessment of the support arrangements of each SIV. In each case, the SIV's ICR and senior liabilities ratings are linked to the rating on the relevant support provider, which has not changed. At the same time, S&P has affirmed the 'CC' rating on the capital notes to reflect S&P's opinion of the likelihood of their repayment. The relevant support arrangements do not include the repayment of capital notes, and S&P is of the view that the capital notes are highly vulnerable to nonpayment. S&P has also published more information on the support arrangements of the vehicles affected by these rating actions. Ratings Affirmed Centauri Corp. ICR A+/Negative/A-1 CP A-1 MTN A+ CC (USA) Inc. ICR A+/Negative/A-1 CP A-1 MTN A+ Five Finance Corp. ICR A+/Negative/A-1 CP A-1 MTN A+ Five Finance Inc. CP A-1 MTN A+ Links Finance Corp. ICR A+/Stable/A-1 CP A-1 MTN A+ Links Finance LLC ICR A+/Stable/A-1 CP A-1 MTN A+ Parkland Finance Corp. ICR A+/Stable/A-1 CP A-1 MTN A+ Parkland (USA) LLC CP A-1 MTN A+ Harrier Finance Funding Ltd. ICR BBB+/Negative/A-2 CP A-2 MTN BBB+ Harrier Finance Funding (U.S.) LLC CP A-2 MTN BBB+ Kestrel Funding PLC ICR BBB+/Negative/A-2 CP A-2 MTN BBB+ Capital notes CC Nightingale Finance Ltd. ICR A-/Negative/A-1 CP A-1 MTN A- Capital notes CC Nightingale Finance LLC CP A-1 MTN A- ICR -- Issuer credit rating. CP -- Commercial paper. MTN -- Medium-term notes. R.B. FARQUHAR: Companies Vying to Take Over Firm ------------------------------------------------ Gillian Duncan at The Press and Journal reports that companies are lining up to bid for RB Farquhar (Holdings). As reported in the Troubled Company Reporter-Europe on November 8, 2010, The Scotsman said that the directors of RB Farquhar and three of its subsidiaries appointed Blair Nimmo and Gary Fraser of KPMG Restructuring as joint administrators, putting 112 jobs at risk. According to The Scotsman, the company's hires and storage divisions, RB Farquhar (Hires) and Simply Self Storage, which employ 77 and four staff respectively, will continue to trade as normal while KPMG seeks a buyer. According to the Press and Journal, Mr. Nimmo and Mr. Fraser have been brought in to sell off the firm's self-storage and hire businesses, which will continue to trade. The report relates that it is understood both arms of the company have attracted strong interest. The report notes that Gordon MP Malcolm Bruce said it did not look like the business would be sold as a going concern, but in different components, although that could change if someone made an offer for the lot. Mr. Bruce said administrators told him they were in no rush to sell, the Press and Journal adds. Based in Huntly, RB Farquhar (Holdings) produces prefabricated bathroom pods. ROK PLC: Mears Eyes Social Housing Business ------------------------------------------- Ed Hammond and Mark Wembridge at The Financial Times report that Mears looks to have put itself in pole position to take on the social housing business of Rok plc just hours after its building services rival collapsed into administration on Monday. The FT relates Mears met PwC administrators to discuss acquiring the rights to carry out Rok's obligations to maintain and repair social housing stock in the UK. According to the FT, Mike Jervis, running the administration for PwC, said there was a possibility of a rival taking on Rok's entire order book, which includes construction, maintenance and insurance response contracts. The social housing business was rumored to have also attracted the interest of Rok rivals, Kinetics and Leadbitter, although neither company could be reached for comment, the FT notes. ROK Plc -- http://www.rokgroup.com/-- is a holding company of a group of companies providing response maintenance, planned repairs and refurbishment and new build services in the United Kingdom. The Company operates in three segments: response maintenance; planned repairs and refurbishment, and new build. Rok Plc provides a range of plumbing, heating and electrical (PHE) services. The Company's wholly owned subsidiaries include Rok Building Limited, Rok Development Limited, Richardson Projects Limited, LAS Plant Limited, Rok Civil Engineering Limited and Tulloch Transport Limited. ROK PLC: Dundee Workers Assured They Will Get Paid -------------------------------------------------- Workers with ROK in Dundee were assured they would still be paid, despite the building services company going into administration, Evening Telegraph and Post reports. As reported in the Troubled Company Reporter-Europe on November 9, 2010, Rok boss Garvis Snook has placed the company into administration. Construction Inquirer related that a stock exchange announcement said: "The board of Rok announces that it has resolved to put the Company into administration and to make an application to the Financial Services Authority to suspend the listing and trading of the Company's Ordinary Shares on the Stock Exchange. It is anticipated that the administration and suspension will become effective shortly." According to the report, the move follows weeks of rumors that the company was struggling in the maintenance sector which has already been hit by the collapse of Connaught. ROK Plc -- http://www.rokgroup.com/-- is a holding company of a group of companies providing response maintenance, planned repairs and refurbishment and new build services in the United Kingdom. The Company operates in three segments: response maintenance; planned repairs and refurbishment, and new build. Rok Plc provides a range of plumbing, heating and electrical (PHE) services. The Company's wholly owned subsidiaries include Rok Building Limited, Rok Development Limited, Richardson Projects Limited, LAS Plant Limited, Rok Civil Engineering Limited and Tulloch Transport Limited. ROK PLC: Administration Affecting Work on Trowbridge Civic Hall --------------------------------------------------------------- Wiltshire Times reports that the future of the new Civic Hall in Trowbridge hangs in the balance after Rok have gone into administration. The report relates that development had been well underway at the civic hall site adjacent to Trowbridge Park until news broke that the firm had gone into administration, causing the few sub contractors who were at the site to leave earlier. According to the report, work has ground to a halt at the site and a delivery of steel fabrication which was due to arrive was not delivered. Wiltshire Times relates Trowbridge town clerk Lance Allan said: "None of us had any inkling that this would happen. I heard from various sources about Rok going into administration this morning. I was just completely surprised. We have to find out what the administrators are intending to do. The situation at the moment is that no work is taking place on site and the only sub contractors who were on site have left." Mr. Allan, the report notes, explained that if the administrators do not find someone to take over the business or the projects it has contracted out to then the town council will have to re-tender the project, which could cost substantially more. Rok plc and Rok Building Limited went into administration and Robert Hunt, Michael Jarvis, and Robert Lewis and Jeremy Webb, all of PricewaterhouseCoopers, were appointed as joint administrators, Wiltshire Times notes. ROK Plc -- http://www.rokgroup.com/-- is a holding company of a group of companies providing response maintenance, planned repairs and refurbishment and new build services in the United Kingdom. The Company operates in three segments: response maintenance; planned repairs and refurbishment, and new build. Rok Plc provides a range of plumbing, heating and electrical (PHE) services. The Company's wholly owned subsidiaries include Rok Building Limited, Rok Development Limited, Richardson Projects Limited, LAS Plant Limited, Rok Civil Engineering Limited and Tulloch Transport Limited. ROYAL BANK: Posts GBP1.4 Billion Pre-Tax Loss in Qtr. Ended Sept. ----------------------------------------------------------------- BBC News reports that Royal Bank of Scotland has plunged back into the red with a GBP1.4 billion (US$2.3 billion) pre-tax loss during the three months to September. BBC relates RBS blamed the loss on changes to the "fair value" of its own debt, but said it was making "tangible progress". According to BBC, RBS said market conditions would remain challenging. BBC notes RBS Chief executive Stephen Hester said the bank was making "good progress in our recovery", but that highly volatile accounting charges could "obscure our underlying story". RBS, as cited by BBC, said while bad debt provisions were improving, changes to the "fair value of own debt" had caused the losses. Bailout As reported by the Troubled Company Reporter-Europe on Aug. 26, 2010, Stephen Hester, Royal Bank of Scotland's chief executive, as cited by The Scotsman, said that the bank should not be given a second chance of a taxpayer bailout if it is involved in another financial crisis. In a bold admission that the public would not tolerate further handouts, Mr. Hester said all financial institutions -- including RBS -- should be allowed to fail and suffer the consequences without the state rushing to their aid, according to The Scotsman. The Scotsman disclosed Mr. Hester was drafted in when RBS sank under a mountain of debt after the meltdown that followed its disastrous takeover of the Dutch bank ABN Amro before the credit crunch. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com -- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. SPICERS: Inability to Finance Debts Spurs Voluntary Liquidation --------------------------------------------------------------- Spicers (Builders) Ltd has gone into liquidation with the loss of 50 jobs, buildersmerchantsjournal.net reports. According to buildersmerchantsjournal.net, managing director Nick Weaver told staff that the company had run out of work and was unable to finance its debts. The company, buildersmerchantsjournal.net says, has instructed recovery and insolvency specialist Smith and Williamson to advise it on going into liquidation. buildersmerchantsjournal.net relates Neil Hickling, director of insolvency at Smith and Williamson, said he was aiming to sell Spicers' one outstanding contract to another contractor to recoup some money. A meeting with shareholders and creditors has been set for November 24, 2010. Established in 1929, Spicers built Worcester Porcelain Museum, the King's School library and the local swimming pool. It was founded by Ernest V Spicer and developed into a local contractor taking on jobs of between GBP1 million and GBP2 million with a joinery and plant business. * UK: Banks Expect Rise in Small Business Insolvencies Next Year ---------------------------------------------------------------- Alan Purkiss at Bloomberg News, citing the Financial Times, reports U.K. banks such as Barclays Plc, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc expect the number of small companies becoming insolvent and reorganizing in the next year to increase or stay at the present high level. According to the FT, the newspaper said insolvency practitioners represented by R3, a trade group, predict that corporate failures will rise to 27,500 next year, from last year's 26,400. =============== X X X X X X X X =============== * EUROPE: Bank Bail-Ins Dangerous & Unworkable, Rabobank Says ------------------------------------------------------------- Jennifer Hughes at The Financial Times reports that Rabobank, the mutually owned Dutch lender, has warned that proposals to dock bondholders' investments to recapitalize failing banks -- known as "bail-ins" -- are dangerous and unworkable. The so-called bail-in plan is one of two main ideas for forcing bondholders to share the burden of rescuing failing banks in an effort to protect taxpayers and to encourage investors to be choosier about their investments, the FT discloses. According to the FT, Bert Bruggink, Rabobank's chief financial officer, has instead backed a second idea: creating special bonds known as contingent capital, nicknamed "Cocos", to help absorb losses. The FT relates rather than a bail-in, which would create uncertainty about the scale of losses for all investors, he said it would be simpler to sell bonds specifically designed to absorb losses to investors able to bear that risk. * Moody's: Global Default Rate Falls to 3.7% in October ------------------------------------------------------- The trailing 12-month global speculative-grade default rate dropped to 3.7% in October 2010, down from a level of 4.0% in September, said Moody's Investors Service in a new report. A year ago, the global default rate was much higher at 13.4%. The ratings agency's default rate forecasting model now predicts that the global speculative-grade default rate will fall to 2.8% by the end of this year before declining to 1.9% by October 2011. "Defaults continue to come in near, but generally below, our expectations," said Albert Metz, Moody's Director of Credit Policy Research. "Issuers are able to find the liquidity they need when they need it." In the U.S., the speculative-grade default rate fell to 3.6% in October from 4.0% in September, while in Europe, the default rate declined to 2.8% in October from 3.5% in October. The U.S. and European default rate stood at 14.6% and 10.6% respectively, at this time last year. Among U.S. speculative-grade issuers, Moody's forecasting model foresees the default falling to 2.9% by December 2010 and then declining to 2.2% a year from now. In Europe, the forecasting model projects the speculative-grade default rate will end the year at 2.1% before dropping to 1.2% by October 2011. A total of five Moody's-rated corporate debt issuers defaulted in October, which sends the year-to-date default count to 45. This is below Moody's January projection that 63 defaults would have been recorded through the first ten months of the year. In comparison, a total of 247 defaults were recorded in the comparable time period last year. Across regions, all of October's defaults were by North American issuers except for Hipotecaria Su Casita, S.A. de C.V., which is based in Latin America. Across industries over the coming year, default rates are expected to be highest in the Hotel, Gaming, & Leisure sector in the U.S. and the Durable Consumer Goods sector in Europe. Measured on a dollar volume basis, the global speculative-grade bond default rate edged lower to 1.4% in October, down from 2.0% in September. Last year, the global dollar-weighted default rate was noticeably higher at 19.3%. In the U.S., the dollar-weighted speculative-grade bond default rate ended at 1.1% in October, down from the level of 1.8% in September. The comparable rate was 20.1% in October 2009. In Europe, the dollar-weighted speculative-grade bond default rate edged lower to 2.4% in October from 2.6% in September. At this time last year, the European speculative-grade bond default rate was 12.0%. Moody's speculative-grade corporate distress index -- which measures the percentage of rated issuers that have debt trading at distressed levels -- came in at 14.1% in October, down from the level of 15.0% in September. A year ago, the index was much higher at 27.2%. In the leveraged loan market, no Moody's-rated loan defaulters defaulted in October. Therefore the year-to-date loan default count remained unchanged at 19. The trailing 12- month U.S. leveraged loan default rate fell from 4.1% in September to 3.6% in October. A year ago, the loan default rate was 11.5%. * S&P's 2010 Global Corporate Defaults Tally Now at 73 ------------------------------------------------------ Four U.S.-based corporate issuers defaulted last week, raising the year-to-date 2010 global corporate default tally to 73, according to a report published by Standard & Poor's. By region, the current year-to-date default tallies are 50 in the U.S., three in Europe, nine in the emerging markets, and 11 in the other developed region (Australia, Canada, Japan, and New Zealand). According to the report, titled "Global Corporate Default Update (Oct. 29 - Nov. 4, 2010) (Premium)," so far this year, missed interest or principal payments are responsible for 27 defaults, Chapter 11 and foreign bankruptcy filings account for 22, distressed exchanges account for 19, receiverships account for three, regulatory directives and administration account for one default each. Of the global corporate defaulters in 2010, 42% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0% to 10%), 12% of the issues had recovery ratings of '5' (modest recovery prospects of 10% to 30%), 8% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 17% had recovery ratings of '3' (meaningful recovery prospects of 50% to 70%). And for the remaining two rating categories, 12% of the issues had recovery ratings of '2' (substantial recovery prospects of 70% to 90%) and 10% had recovery ratings of '1' (very high recovery prospects of 90% to 100%). ********* 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. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, 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 * * *