/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110124.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, January 24, 2011, Vol. 12, No. 16 Headlines C Z E C H R E P U B L I C SAZKA AS: Asks Bondholders to Agree to Haircut I C E L A N D KAUPTHING BANK: Approved EUR2BB Loans to Usmanov Prior to Collapse LANDSBANKI ISLANDS: Searches Conducted in Collapse Probe F I N L A N D STORA ENSO: Moody's Affirms 'Ba2' Rating on Senior Unsecured Notes G E R M A N Y ARCANDOR AG: Bochum Prosecutors Review Ex-CEO's Bonus in Probe GENERAL MOTORS: CEO Said to Be Impatient With Opel Progress HYPO REAL ESTATE: Nationalization Not an Act of Expropriation NN INC: To Restructure European Manufacturing Capacity SCHLOTT GRUPPE: Faces Erosion of Share Capital by More Than 50% I C E L A N D * ICELAND: Three Failed Banks Likely to Merge, FME Director Says L A T V I A LASCO INVESTMENT: Administrators Accused of Unlawful Actions M O L D O V A EVENTIS MOBILE: Creditors in Dispute with Insolvency Manager N O R W A Y * NORWAY: Bankruptcies Down 12.5% in Fourth Quarter 2010 R O M A N I A * ROMANIA: Insolvency Trend to Remain Upward in 2011, Coface Says U N I T E D K I N G D O M BRYN THOMAS: Goes Into Administration, Taps Administrators HMV GROUP: Appoints KPMG to Advise on Debt Amid Breach Fears KEYDATA INVESTMENT: Asset Managers May Face Levy Over Insolvency LOVEGROVES LLP: Goes Into Liquidation MCGIMPSEY & KANE: Goes Into Administration, Owners Bankrupt NORTHUMBERLAND FOODS: Plant Takeover Fails OSPREY ACQUISITIONS: Fitch Assigns 'BB+(exp)' Sr. Secured Rating ROSSA DAIRY: Falls Into Administration, Axes 19 Jobs * SCOTLAND: Corporate Insolvencies Rise 45.8% in 2010 X X X X X X X X * BOND PRICING: For the Week January 17 to January 21, 2011 ********* =========================== C Z E C H R E P U B L I C =========================== SAZKA AS: Asks Bondholders to Agree to Haircut ---------------------------------------------- Dow Jones' DBR Small Cap reports that newspaper Hospodarske Noviny said Sazka AS has asked its bondholders to agree to a 30% to 33% reduction in principal on outstanding bonds and to lowering the yield on the bonds to 6% from 9% to enable the company to continue operating and not move into bankruptcy. Sazka AS is a Czech lottery firm. ============= I C E L A N D ============= KAUPTHING BANK: Approved EUR2BB Loans to Usmanov Prior to Collapse ------------------------------------------------------------------ Sigrun Davidsdottir and Rowena Mason at The Daily Telegraph reports that Kaupthing approved loans worth EUR2 billion (GBP1.69 billion) for Alisher Usmanov, the billionaire behind Arsenal Football Club, less than two weeks before the Icelandic bank went bust. Iceland's biggest bank failed in early October 2008, hitting 150,000 British savers with Edge internet accounts, The Daily Telegraph recounts. Kaupthing still owes the UK Treasury GBP2.5 billion for stepping in to compensate customers, The Daily Telegraph discloses. However, minutes of a credit committee meeting seen by The Daily Telegraph show that Kaupthing was still showering businessmen, including Mr. Usmanov, with offers of money on September 24. According to The Daily Telegraph, the leaked documents show that Kaupthing's loan to Mr. Usmanov would have been more than double the 25% limit for exposure to a single party. It also emerges that Mr. Usmanov owned a 1.5% stake in the bank. According to the minutes, Kaupthing offered two loans to Mr. Usmanov. One was for US$1.2 billion to build a stake in Norilsk Nickel, The Daily Telegraph relates. Another was to buy a EUR1.1 billion stake in Finnish insurer Sampo -- which was closely linked to some of Kaupthing's main owners, The Daily Telegraph discloses. There is no suggestion Mr. Usmanov acted improperly at any point, The Daily Telegraph says. It is not clear whether or how much of the US$2 billion in approved loans were paid out to Mr. Usmanov before the bank collapsed, The Daily Telegraph notes. About Kaupthing Bank Headquartered in Reykjavik, Kaupthing Bank -- http://www.kaupthing.com/-- is Iceland's largest bank and among the Nordic region's 10 largest banking groups. With operations in more than a dozen countries, the bank offers a range of services including retail banking, corporate finance, asset management, brokerage, private banking, treasury, and private wealth management. Kaupthing was created by the 2003 merger of Bunadarbanki and Kaupthing Bank. In October 2008 the Icelandic government assumed control of Kaupthing Bank after taking similar measures with rivals Landsbanki and Glitnir. As reported by the Troubled Company Reporter on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. LANDSBANKI ISLANDS: Searches Conducted in Collapse Probe -------------------------------------------------------- Omar R. Valdimarsson at Bloomberg News, citing Reykjavik-based newspaper Vidskiptabladid, reports that Iceland's Special Prosecutor has conducted searches at the country's central bank, MP Bank hf and investment company ALMC hf as part of its investigation into the causes of Landsbanki Islands hf's collapse more than two years ago. According to Bloomberg, the newspaper noted that Special Prosecutor Olafur Hauksson was due to release a statement on the searches Thursday last week. About Landsbanki Islands Landsbanki Islands hf, also commonly known as Landsbankinn in Iceland, is an Icelandic bank. The bank offered online savings accounts under the "Icesave" brand. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki and two other major banks. Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr. S.D. N.Y. Case No.: 08-14921). Gary S. Lee, Esq., at Morrison & Foerster LLP, represents the Debtor. When it filed for protection from its creditors, it listed assets and debts of more than US$1 billion each. ============= F I N L A N D ============= STORA ENSO: Moody's Affirms 'Ba2' Rating on Senior Unsecured Notes ------------------------------------------------------------------ Moody's Investors Service affirmed the Ba2 Corporate Family Rating of Stora Enso Oyj as well as the Ba2 Senior Unsecured Notes Ratings upon the announcement to build a new 1.3-million ton pulp mill in Uruguay with joint venture partner Arauco. The outlook remains positive. The project, which is worth approximately US$1.9 billion, comprises a pulp mill, a deepwater port and a power generation unit based on renewable resources and is expected to become operational over Q1 2013 with fiber to be largely sourced from existing own plantations. The investment costs will be equally shared by Stora Enso and Arauco, who are also entitled to the output on a 50%/50% basis, with 40% being equity contributions from both partners with the remainder being debt financed at the subsidiary level, but guaranteed by the parents. Moody's views this major investment project as consistent with Stora Enso's stated strategy of improving its access to low-cost plantation based pulp. In addition, Moody's notes positively the benefits to the business profile through an increasing diversification of products and geographic spread while becoming less dependent on the mature Western European paper market. At the same time, we caution that demand and pricing for market pulp has been highly cyclical over the past years which could potentially increase volatility in Stora Enso's operating performance in the future, though we note that this venture will be equity consolidated at the outset. In addition, this investment, together with the recently announced plan to invest into new containerboard capacity in Poland, will limit further credit metrics improvement potential. Moody's draws however comfort from the improvements in operating performance achieved over 2010 and from the fact that through the funding of the Uruguayan project debt at the joint-venture level, profitability and cash flow generation will not be impacted by debt service costs. This should enable Stora Enso to continue to generate solid positive free cash flows, even when deducting the equity contribution for the investment. The positive outlook assumes that the ratings could be upgraded over the next months should Stora Enso be able to at least sustain recently strengthened credit metrics on the back of a continued improving industry environment and due to benefits realized from past restructuring and cost saving activity. While demand levels for the majority of paper grades remain still below historic levels, a gradual recovery in volumes and further anticipated price increases in the group's publication paper operations should help to further improve profitability and cash flow generation, and therefore largely mitigate negative effects from higher investment activity. More fundamentally, the Ba2 CFR reflects the group's solid business profile as one of the leading global paper and forest products companies, with a strong segmental diversification, covering a variety of paper grades, packaging and wood products. Earnings volatility is reduced by the company's solid degree of vertical integration. The rating also takes into account the group's strong positions in the publication paper and paper/based packaging markets, as well as its extended debt maturity profile and solid liquidity cushion. The Ba2 rating still incorporates the volatility of credit metrics with trough levels in the downturn in 2008 and 2009. The rating also factors in that the market environment for certain paper grades remains challenging as structural overcapacities constrain the realization of sufficient pricing levels, particularly on the back of recent re-inflation of most input costs. Further rating upside pressure would build up should Stora Enso be able to gradually improve operating profitability with EBITDA margins improving towards the mid-teens and to sustain retained cash flow to debt at close to 20%. Negative pressure could arise if Stora Enso was unable to sustain recent improvements in profitability and operating cash flow generation, as indicated by EBITDA margins below 10% and RCF-to- debt below 13%. In addition, should free cash flow generation turn negative on an LTM basis, this would put pressure onto the rating. Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history. The principal methodology used in rating Stora Enso was "Moody's Global Paper and Forest Products Industry rating methodology", published in September 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. Headquartered in Helsinki, Finland, Stora Enso is among the world's largest paper and forest products companies, with sales in the last twelve months ending September 2010 of approximately EUR10 billion. Core activities include publication and fine papers, paper packaging products and solid wood products. ============= G E R M A N Y ============= ARCANDOR AG: Bochum Prosecutors Review Ex-CEO's Bonus in Probe -------------------------------------------------------------- Karin Matussek at Bloomberg News reports that Bochum prosecutors are looking into a EUR2.3 million (US$3.1 million) bonus payment that former Arcandor AG Chief Executive Officer Thomas Middelhoff received before he left the company and six months before it filed for bankruptcy. Bloomberg relates that Bernd Bernd Bieniossek, spokesman for Bochum prosecutors, said in an interview on Friday that the payment, approved by the supervisory board at a Dec. 11, 2008, meeting is being reviewed as part of a probe into the company's bankruptcy. According to Bloomberg, Mr. Middelhoff's lawyer Sven Thomas in an interview on Friday denied wrongdoing by his client. Mr. Thomas, as cited by Bloomberg, said that the bonus payment has long been public and was granted under Mr. Middelhoff's compensation agreement. Bochum prosecutors are investigating about 20 people over the company's demise in June 2009, Bloomberg discloses. Investigators raided nine sites throughout Germany in October, Bloomberg recounts. Cologne prosecutors are leading a related probe, Bloomberg notes. Debt Refinancing As reported by the Troubled Company Reporter-Europe on Jan. 20, 2011, Bloomberg News said Mr. Middelhoff rejected claims he misinformed investors in 2008 about the company's efforts to refinance debt. Mr. Middelhoff testified at a court in Essen, Germany, on Jan. 6 that he wasn't wrong when he told a reporter on Sept. 16, 2008, that Arcandor had ruled out a capital increase for a refinancing due at the end of that month, Bloomberg disclosed. He also said he didn't instruct his spokesman to deny that Arcandor was considering selling its stake in Thomas Cook Group Plc, according to Bloomberg. Bloomberg related that after several refinancing efforts faltered, Arcandor announced a few days later that it would sell EUR23 million new shares to Bank Sal Oppenheim Jr. & Cie. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. As reported by the Troubled Company Reporter-Europe, a local court in Essen formally opened insolvency proceedings for Arcandor on September 1, 2009. The proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state- owned bank. GENERAL MOTORS: CEO Said to Be Impatient With Opel Progress ----------------------------------------------------------- The Wall Street Journal's Sharon Terlep reports that GM Chairman and CEO Dan Akerson is growing impatient with progress of the company's unit in Europe, people familiar with the situation said. The Journal says next on Mr. Akerson's list of issues to tackle -- along with negotiations this year with the United Auto Workers union -- is GM's money-losing Opel division in Europe. GM has put in place a restructuring plan for Opel and Opel CEO Nick Reilly has said he is optimistic the operation will break even in 2011 after years of losses. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2010, GM had US$137.238 billion in total assets, US$106.522 billion in total liabilities, US$6.998 billion in preferred stock, $971 million in non-controlling interest, and US$23.718 billion in total equity. New GM has a 'BB-' corporate credit rating from Standard & Poor's and a 'BB-' issuer default rating from Fitch. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) HYPO REAL ESTATE: Nationalization Not an Act of Expropriation ------------------------------------------------------------- Reuters reports that a Munich court ruled on Thursday that a squeeze-out of minority shareholders was appropriate in a nationalization of Hypo Real Estate. According to Reuters, Presiding Judge Helmut Krenek said the move to nationalize the bank had been proportionate and, given the circumstances, was not an act of expropriation. A group of 38 shareholders, including US investor JC Flowers, had sought to block the transfer of their shares, Reuters discloses. HRE's business model combining property finance with investment banking came unstuck in the financial crisis, forcing the lender -- considered crucial to the stability of the pfandbrief or covered bond market -- to turn to the government for more than EUR100 billion (US$135 billion) in guarantees, Reuters relates. Germany then agreed to let HRE transfer loans and securities worth a nominal EUR173 billion to a so-called "bad bank" to allow it to restructure, Reuters recounts. That aid prompted an investigation by the European Commission's competition authorities, who gave the asset transfer a provisional green light on September 24, Reuters notes. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. * * * As reported by the Troubled Company Reporter-Europe, Chancellor Angela Merkel's government took over Hypo Real Estate in 2009 after the lender's Dublin-based Depfa Bank Plc unit couldn't raise financing when the bankruptcy of Lehman Brothers Holdings Inc. froze credit markets. Hypo Real was one of seven banks to fail stress tests on 91 of Europe's biggest lenders in July, according to Bloomberg. As reported by the Troubled Company Reporter-Europe on Oct. 13, 2010, Fitch Ratings upgraded HRE Holding's Individual rating to 'D' from 'F' and simultaneously withdrew it. Depfa Bank plc's Individual rating was upgraded to 'D' from 'F.' NN INC: To Restructure European Manufacturing Capacity ------------------------------------------------------ NN, Inc. will cease company manufacturing operations at its German manufacturing facility, Kugelfertigung Eltmann GmbH, because the operation has filed for bankruptcy at the local court on January 20, 2011. Eltmann manufactures precision steel balls for industrial and aerospace applications. Due to the insolvency of Eltmann, as of December 31, 2010, NN, Inc. will adjust the value of the property, plant and equipment to fair market value, which is not expected to result in a significant change from the current book value of US$1.9 million. In addition, as of the bankruptcy date (during the first quarter of 2011), all other assets and liabilities will be written off and charges taken to record any contingent liabilities. As of this date, management does not expect that the charges for these entries to be significant, although it is not possible to determine the amounts at this time. Roderick R. Baty, Chairman and Chief Executive Officer of NN, commented, "Although this bankruptcy does not have a negative impact on the consolidated profitability of NN, Inc. for 2010 and the forecasted results for 2011, we are saddened to make this unfortunate announcement. Management and employees have worked diligently to improve the operating results and profitability. However, economic factors over the last two years coupled with the high cost of manufacturing our products in Germany have eroded the financial status of Eltmann. Unfortunately, we cannot forecast an improvement in the operations of Eltmann to reverse this condition for the foreseeable future. We fully acknowledge the impact this will have on our employees in Eltmann." Mr. Baty concluded, "We are working closely with our customers and suppliers to ensure a product supply and services from our other global manufacturing units in Europe, Asia and the U.S. We have sufficient capacity in our remaining worldwide facilities to adequately meet the supply requirements of our customers who have been serviced historically from our Eltmann facility." NN, Inc. manufacturers and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of end markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 12 manufacturing plants in the United States, Western Europe, Eastern Europe and China. NN, Inc. had sales of US$259 million in 2009. SCHLOTT GRUPPE: Faces Erosion of Share Capital by More Than 50% --------------------------------------------------------------- The District Court of Nuremberg appointed Dr. Siegfried Beck as the provisional insolvency administrator for schlott gruppe AG and its domestic subsidiaries on January 18, 2011, the company disclosed in a public statement. Having submitted an application for the commencement of insolvency proceedings, schlott gruppe will have to conduct its accounting on the basis of liquidation value. In particular, this will have an influence on the measurement and recognition of interests in and receivables from affiliated entities. As a result, schlott gruppe is faced with an erosion of share capital by more than 50%. Pursuant to Section 92 of the German Stock Corporation Act (Aktiengesetz - AktG), the company is therefore obliged to convene immediately an Extraordinary Meeting of Shareholders. In view of the current situation, the provisional insolvency administrator is not in a position to approve the funds required for the purpose of convening an Extraordinary Meeting of Shareholders. Therefore, at present no date can be specified in respect of such an Extraordinary Meeting of Shareholders. Schlott gruppe also disclosed that working in collaboration with the Management Board, Mr. Beck aims to continue the Group's full business operations within the context of preliminary insolvency proceedings. All wages and salaries for the domestic workforce of around 1,500 employees are guaranteed for a period of three months from funds available under Germany's statutory insolvency provisions. The insolvency administrator and Management Board intend to rescue schlott gruppe by means of an insolvency plan or the sale of the company to an investor. The objective is to retain as many jobs as possible. "schlott gruppe has established a good position within the market and, on the whole, remains competitive," said the provisional insolvency administrator when asked to comment on the current situation. "The insolvency proceedings now initiated by the company provide an opportunity for a fundamental restructuring of the Group." Mr. Beck and his team are currently in the process of analyzing the situation in the respective companies. The insolvency administrator and Management Board have been in close dialogue with key customers and suppliers for the purpose of safeguarding the continuation of business operations. schlott gruppe is one of the leading service providers within the European printing industry. The focus of its business is on large-volume printing for customers operating within the publishing and mail-order sector as well as advertisers. Thus, the emphasis is on magazines, advertising supplements and catalogues. Owing to the substantial market pressure exerted on prices in recent years, schlott gruppe has been faced with financial difficulties. Finally, on Tuesday, January 18, it was forced to submit an application for the commencement of insolvency proceedings. As reported by the Troubled Company Reporter-Europe on Jan. 20, 2011, schlott gruppe's Management Board submitted an application to the District Court of Nuremberg for the commencement of insolvency proceedings on the grounds of financial insolvency and excessive indebtedness. Subsequently, an application was also submitted to the District Court of Nuremberg for the commencement of insolvency proceedings in respect of the German Group entities schlott GmbH, schlott Vertrieb GmbH, schlott logistik GmbH, u.e. sebald Druck GmbH, D.V.N. Druckverarbeitung Nurnberg GmbH, media2print GmbH, wwk Druck GmbH, broschek rollenoffset GmbH, broschek service GmbH, broschek tiefdruck GmbH and sebaldus GmbH on the grounds of financial insolvency and excessive indebtedness. Initially, the insolvency proceedings will not affect the foreign Group entities reus S.R.O. (Czech Republic) und hollmann S.A. (France). The obligation for the commencement of insolvency proceedings for the Dutch Group entities biegelaar B.V. and media2print B.V. is currently under examination. Headquartered in Freudenstadt, Germany schlott gruppe AG covers a multitude of services surrounding printed and digital media processes. Its range of services covers five areas: media services, intaglio, web offset printing, processing and logistics services. ============= I C E L A N D ============= * ICELAND: Three Failed Banks Likely to Merge, FME Director Says ---------------------------------------------------------------- Global Insolvency reports that Dow Jones Daily Bankruptcy Review, citing Gunnar T. Andersen, the director general of Icelandic Financial Supervisory Authority, or FME, said that three Icelandic banks that were taken into state ownership following their collapse in 2008 could go fully public within about five years and may be further restructured in the meantime. According to Global Insolvency, Mr. Andersen said two of the three largest Icelandic banks could be merged. The three banks -- Landsbanki, Kaupthing and Glitnir -- failed in 2008 and were nationalized as the financial crisis gripped the country, Global Insolvency recounts. They have since been reorganized, Global Insolvency notes. Mr. Andersen, as cited by Global Insolvency, said consolidation would advance Iceland's plans to rationalize its banks. "We are over-banked and have been for some time," Global Insolvency quoted Mr. Andersen as saying, adding that the priority now is "to lower the high nonperforming-loan ratio of 40%-50%." Global Insolvency relates that Mr. Andersen hopes to slash the figure to more normal levels of 1%-3%. He said achieving that target and cleaning up bank balance sheets could take two to three years, Global Insolvency notes. =========== L A T V I A =========== LASCO INVESTMENT: Administrators Accused of Unlawful Actions ------------------------------------------------------------ JSC Latvijas Kugnieciba (LK) as the sole owner of LASCO Investment Ltd. (LI) believes that the administrator of LI and other administrators of the LI Group have acted contrary to the law, in order to take over and control properties worth many millions of Lats. Administrators of companies of the LI Group are Zigurds Krastins, Elvijs Vebers, Kristaps Andersons and Janis Esenvalds. To prevent the new Management Board members of LI and its Group's subsidiaries, elected by the new Management Board of LK on December 22, 2010, from exercising their legal functions, the administrators of LI and other administrators of the LI Group are not giving approval to register the new Management Board members in the Commercial Register of the Republic of Latvia. Therefore, the administrators are unlawfully preventing the new LK Management Board from being able to manage their assets in the LI Group, thus causing substantial damages to the LI Group's creditors, the LK Group and its shareholders, including the State. LK believes that the administrator O.Cers failed to issue consent for the registration of the new LI Management Board in the Commercial Register of the Republic of Latvia with a view to stopping the new LI Management Board from participating in the court hearing on January 3, 2011, where the court resolved to declare insolvency proceedings of LI. Contrary to the interests of creditors of LI, including LK's subsidiary Latmar Holdings Corporation, which is the largest creditor of LI, the Administrator O.Cers maintained the announcement of insolvency proceedings in court. The administrator O.Cers acted this way irrespective of the fact that the creditors of LI had agreed on amendments to the program of out-of-court legal protection proceedings and on restructuring the debt. Possibly the only objective of O.Cers actions is to prevent the new LK Management Board from taking over a valuable asset of LK. "We have reasonable suspicions that insolvency of LI and the out- of-court legal protection proceedings of its related companies was artificially organized. All creditors, except VN, are companies of the LK Group. LK Group's company is also Wilcox, which is indicated as the potential investor of LI. We believe that the out-of-court legal protection proceedings of LI were initiated with the sole purpose being to appoint through agreement such administrators who are loyal to the previous LK Management Board," says the Chairman of the Management Board of LK Paul Thomas, who emphasized that the primary objective is to defend the interests of LI creditors. LK holds a view that announcement of insolvency proceedings had no factual grounds and the administrator acted unlawfully. Further evidence confirming this point is that irrespective of the fact that the administrator O.Cers was informed that VN was ready to postpone the payment of its debt until December 31, 2011, he still filed an insolvency application in court on the same day that the LK Management Board and Supervisory Council was re- elected on December 17, 2010. LK has filed a application to the Prosecutor General of the Republic of Latvia by requesting submitting of the protest on the court's decision on declaring insolvency of LI. Furthermore complaints to the Insolvency Administration on actions of the administrators O.Cers, Z.Krastins, K.Andersons, E.Vebers and J.Esenvalds has been submitted. LASCO Investment Ltd. is a Latvian shipping company. ============= M O L D O V A ============= EVENTIS MOBILE: Creditors in Dispute with Insolvency Manager ------------------------------------------------------------ Infotag reports that a group of members of Eventis Mobile's creditor committee has accused insolvency manager Veaceslav Apostol of disregarding creditor decisions and intentionally delaying the sale of the company's property complex. Infotag relates that Serghei Gotonoga, a member of the committee, said at a press conference on Jan. 19 that Mr. Apostol's accusations against the committee are farfetched and untrue. "The insolvency process manager avoids meeting us and disregards our requests to provide documents, especially, concerning the company property assessment. If the complex cost is really over MDL100 million and there are interested persons in buying it at this price, the creditors will be happy, because they have to return their money," Infotag quoted Mr. Gotonoga as saying. Mr. Gotonoga, as cited by Infotag, said it is untrue the Mr. Apostol's complaints about the pressure exerted against him by law enforcement agencies on the grounds of complaints and threats of the committee, as well as the lobbying of the company selling at a lowest price. He said the company can lose the last license it owns due to the insolvency manager's actions, Infotag notes. Its term runs out on Feb. 16, Infotag discloses. It will be almost impossible to find a buyer for the property without the license, Infotag states. According to Infotag, Mr. Gotonoga noted that Aitel Sistem, which intended to buy Eventis Mobile at the price of US$3.5 million, took aside money from Moldova due to the insolvency manager's refusal to sell the company. On Jan. 21, 2011, the Troubled Company Reporter-Europe, citing Infotag, reported that Mr. Apostol asserted that the company was intentionally made bankrupt for the purpose of it being easily seized within a raider attack. Infotag related that an open letter read by Mr. Apostol during a press conference on Jan. 18 said a group of the company's creditors "attempt[ed] to lobby a disadvantageous and unprofitable deal on selling the enterprise property complex to the Aitel Sistem company at the price of MDL40 million only, while the market price is about MDL113 million." Mr. Apostol said the company council of creditors impedes him, as the manager of the insolvency process, in every way possible to sell the company to someone else at a more profitable price, according to Infotag. As reported by the Troubled Company Reporter-Europe on Dec. 17, 2010, Infotag said Eventis Mobile owed about MDL2 million to 15 creditors and did not pay salaries to its employees for about one year, which prompted the court to decide to sequestrate its property and to offer it for sale in the Auction House commission shop. As of July 2010, the creditors' claims approved by the court was MDL104 million, MDL16.3 million of which are salary debts, MDL4.75 million are debts to the Budget and MDL80.26 million are debts to contractors, according to Infotag. Eventis Mobile is a mobile phone company working in the GSM 900/1800 MHz standard in Moldova. =========== N O R W A Y =========== * NORWAY: Bankruptcies Down 12.5% in Fourth Quarter 2010 -------------------------------------------------------- Statistics Norway reports that the number of bankruptcies in Norway declined by 12.5% to 1,035 in the fourth quarter of 2010, compared with the same quarter the previous year. According to Statistics Norway, the number of bankruptcies went down by 11.5% in 2010 to 4,435 compared with 2009. Statistics Norway says seven out of ten bankruptcies; a total of 3,161, were related to enterprises -- except sole proprietorships. Compared with 2009, this number fell by 17%, Statistic Norway notes. The largest decline in absolute figures was in wholesale and retail trade, with a total of 233 fewer bankruptcies, followed by construction with a drop of 113 bankruptcies, Statistics Norway discloses. The remaining 1,274 bankruptcies, up by 6% in 2010 compared with 2009, were related to sole proprietorships and personal bankruptcies, Statistics Norway states. One out of three sole proprietorships that went bankrupt last year was in the construction business, according to Statistics Norway. ============= R O M A N I A ============= * ROMANIA: Insolvency Trend to Remain Upward in 2011, Coface Says ----------------------------------------------------------------- Mediafax, citing Coface Romania, reports that the number of insolvent Romanian companies will continue to grow this year, because the economic environment is still not "stimulating" enough. "The insolvency trend will remain upward in 2011 as well. There are no premises for a stimulating economic environment. Companies that have struggled to stay on the market will not survive," Mediafax quoted Anca Catrina, credit risk manager at Coface Romania, as saying. According to Mediafax, Coface data show that there were 15,442 companies dubbed insolvent in the first nine months of 2010, with construction, retail and transport sectors topping the chart. Romanian trade registry data show the number of companies dubbed insolvent last year reached 21,692, from 19,894 in 2009, Mediafax discloses. Mediafax relates that Cristian Ionescu, Coface country manager for Romania, Bulgaria and Slovakia, said there will be some "resounding" bankruptcies this year. =========================== U N I T E D K I N G D O M =========================== BRYN THOMAS: Goes Into Administration, Taps Administrators ---------------------------------------------------------- Bryn Thomas has gone into administration. The Construction Index reports that insolvency practitioners Dermot Justin Power and Patrick Alexander Lannagan from the Manchester office of BDO have been appointed joint administrators. Crane hire companies have been squeezed over the past couple of years by the twin perils of falling hire rates and falling utilization, according to the Construction Index. Bryn Thomas was established in Flint in 1979 and expanded its services from Birmingham to Cumbria. It ran a fleet of close to 40 mobile cranes with its flagship a 450t-capacity Grove GMK 7450. HMV GROUP: Appoints KPMG to Advise on Debt Amid Breach Fears ------------------------------------------------------------ HMV Group plc has appointed accountancy firm KPMG to advise on its debt and help it meet an April test of its borrowing rules, Reuters reports, citing a source familiar with the situation. According to Reuters, the source on Thursday said that KPMG, already an adviser to HMV, that been given the additional task of tackling the company's debt, reported as GBP152 million when it published half-year results in December. "We have received specialist debt advice for every year since the group was formed in 1998 and, given our recent statement on debt covenants, the company will continue to take this type of advice as prudently appropriate," Reuters quoted HMV as saying. HMV issued a profit warning this month and said meeting April's test of its borrowing rules would be tight, Reuters relates. But in a sign Britain's music industry will rally round HMV in a way it failed to do so to prevent rivals Woolworths and Zavvi's demise, seven leading music industry executives, including the heads of the four largest record labels, have written to The Times newspaper pledging to support HMV, Reuters notes. "It's business as usual. We are continuing to supply HMV with our music and they are continuing to do much more than sell it," wrote the signatories, which include the heads of Sony Music UK, Universal Music UK and Warner Music UK, according to Reuters. "HMV is at the heart of our industry, and they have the full support of all of us." As reported by the Troubled Company Reporter-Europe on Jan. 20, 2011, The Financial Times said that at least one big credit insurer tightened terms of cover for entertainment industry clients that supply CDs, DVDs and computer games to HMV following a profit warning this month cautioning that it might breach banking covenants. The FT related that an e-mail from the credit and collections department of Sony's DADC division sent to record label managers on Jan. 18 warned of a "quick and drastic reduction" in levels of credit to HMV covered by its insurance policies. Sony DADC met the insurer -- believed to be Euler Hermes -- at which its chief executive and risk director said they were "unable to divulge the reasons for their decision" due to HMV's listed status, the FT disclosed. HMV has announced plans to close 60 stores in an effort to cut costs, the FT noted. United Kingdom-based HMV Group plc is engaged in retailing of pre- recorded music, video, electronic games and related entertainment products under the HMV and Fopp brands, and the retailing of books principally under the Waterstone's brand. The Company operates in four segments: HMV UK & Ireland, HMV International, HMV Live and Waterstone's. HMV International consists of HMV Canada, HMV Hong Kong and HMV Singapore. Waterstone's is a bookseller, which operates through 314 stores and a transactional website for the sale of both physical and e-books for download. The Company has operations in seven countries, with principal markets being the United Kingdom and Canada. Its retail businesses operate through 417 stores in the United Kingdom, Canada, Hong Kong and Singapore. On January 29, 2010, the Company completed the acquisition of MAMA Group Plc. Its subsidiaries include HMV Canada Inc, HMV Guernsey Limited, HMV Hong Kong Limited and HMV (IP) Limited. KEYDATA INVESTMENT: Asset Managers May Face Levy Over Insolvency ---------------------------------------------------------------- Alan Purkiss at Bloomberg News, citing the London-based Times, reports that Britain's Financial Services Compensation Scheme is looking at a one-time levy on asset managers to help pay for the collapse of Keydata Investment Services Ltd. According to Bloomberg, the newspaper said that the industry lifeboat has agreed to honor claims from Keydata customers of as much as GBP48,000 (US$76,000) and has already paid out GBP100 million in compensation. As reported by the Troubled Company Reporter-Europe, Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP were appointed joint administrators of Keydata on June 8, 2009. The appointment was made based on an application to court by the Financial Services Authority on insolvency grounds. Keydata Investment Services Ltd. designs, distributes and administers structured investment products. Keydata operates from three locations, being London, Glasgow and Reading and administers its own products as well as portfolios for third parties. LOVEGROVES LLP: Goes Into Liquidation ------------------------------------- The Maidenhead Advertiser reports that Lovegroves LLP Solicitors has gone into liquidation. Lovegroves LLP Solicitors was founded in 1870 and is one of the oldest law practises in the U.K. The company, which was previously known as Lovegrove and Eliot, was based for many years in prestigious Park Street, Windsor, before moving to premises in Frances Road. The current partners are Peter Simpson, Colin Schnadhorst and Barry McInerney. According to the Advertiser, a spokesman for the Solicitors Regulation Authority confirmed that Lovegrove LLP had gone into liquidation. MCGIMPSEY & KANE: Goes Into Administration, Owners Bankrupt ----------------------------------------------------------- BBC News reports that McGimpsey and Kane (MGK), which once employed about 200 people, has been placed into administration. The report relates that the company ceased trading in September 2010. The men who controlled the firm, Bryan McGimpsey and Ian Robinson, have also been declared bankrupt, according to BBC News. The report notes that in common with many firms it was badly hit in the property crash and the company had also been under pressure from its bankers for some time. BBC News discloses that in an interview with the Newtownards Chronicle in 2010, Mr. McGimpsey laid out the company's problems. The report relates Mr. McGimpsey said that the firm's bank had reduced credit available and that many customers had failed to pay their bills. They had halted property development work which accounted for up to 35% of turnover, he added. BBC News notes that it meant that they had to concentrate solely on contracting, an area where intense competition meant there were few profits to be had. Headquartered in Kircubbin, McGimpsey and Kane (MGK) is a building firm. NORTHUMBERLAND FOODS: Plant Takeover Fails ------------------------------------------ BBC News reports that the sale of Northumberland Foods Limited, which had gone into administration, has fallen though. Northumberland Foods ceased production in August 2010 after suffering cash flow problems, according to BBC News. The report relates that Longbenton Foods exchanged contracts to take over the site and restarted manufacturing, taking on 70 of the 250 former staff. However, BBC News notes, it was unable to raise the necessary funds to complete the transfer so the contract was rescinded. The report relates Longbenton Foods had paid a non-refundable deposit when contracts were exchanged on October 22, 2010. BBC News says that the balance was due on November 22, but the company was unable to complete, so administrators Begbies Traynor had granted an extension for a further month. When funds were not forthcoming a notice to complete was served, which expired on January 20, 2011, the report notes. "The administrators owe a duty to all creditors to maximize realizations and have, therefore, decided that, given Longbenton Food's continued inability to raise the necessary funding to complete the transaction, it is appropriate to rescind the contract. The intention is now to press ahead with the marketing and sale of the business, including its plant and machinery and the property situated at the Coquet Industrial Estate, Amble," Begbies Traynor said in a statement obtained by the news agency. Headquartered in Amble, near Morpeth, Northumberland Foods Limited made frozen vegetable products for clients including Tesco, Sainsbury's and Iceland. OSPREY ACQUISITIONS: Fitch Assigns 'BB+(exp)' Sr. Secured Rating ---------------------------------------------------------------- Fitch Ratings has assigned Osprey Acquisitions Limited a senior secured rating of 'BB+(exp)' and an Issuer Default rating of 'BB' with a Stable Outlook. It has also assigned Anglian Water Financing Plc's prospective GBP250 million bond issue, which is guaranteed by Osprey, a senior secured rating of 'BB+(exp)'. The final senior secured ratings are contingent on the receipt of documents conforming to the information already received by Fitch. AWOF is the financing vehicle of Osprey, which is a holding company for businesses focused on the water sector, including ownership of Anglian Water Services Limited (Anglian Water, senior secured debt rated 'A'/'BBB+'/Stable) -- a regulated UK water and wastewater company. AWOF will raise bonds and bank debt on behalf of Osprey, which acts as the guarantor. The seven-year bond is to refinance part of Osprey's GBP450 million bank debt maturing in October 2012. The remainder was refinanced by a bank facility that extends until November 2015. Anglian Water is the group's main operating subsidiary and earnings contributor. The draft bond documentation provides Osprey with scope to increase consolidated leverage in terms of net debt/regulatory asset value up to 93%. The documentation also contains covenants to ensure that the business risk of the group does not materially change by limiting acquisitions and requiring continued ownership of Anglian Water. Additionally, Osprey provides security over substantially all of its assets, including ownership of the corporate group above Anglian Water. Fitch expects Osprey to maintain consolidated gearing at or below 90% pension-adjusted net debt/RAV and dividend cover of around 3x, which are in line with ratio guidelines for the bond's 'BB+(exp)'. The senior secured 'BB+(exp)' ratings have factored in a one-notch uplift for higher-than-average recovery prospects in case of a default, in accordance with Fitch's methodology for 'Utilities Sector Notching and Recovery Ratings' dated March 16, 2010. The rated bond represents holding company debt, which is structurally and contractually subordinated to debt at the operating company level. This risk is partly mitigated by the strong cash flow characteristics of Anglian Water and its management's track record of operating within the restrictions of the covenanted financing that are in place. However, covenants included in AWOF's bond documentation cannot fully mitigate the level of subordination that is embedded into the group's financing structure. Anglian Water has a regulatory ring-fence in place and a documentary ring-fence created though the provisions of the covenanted financing. These circumstances are reflected in the rating of AWOF's bond. Osprey and AWOF expect to maintain a cash reserve matching six months of debt service and GBP25 million of committed undrawn bank facilities, which Fitch views as sufficient to bridge short-term liquidity needs. For debt service Osprey relies on upstream cash flows from Anglian Water. ROSSA DAIRY: Falls Into Administration, Axes 19 Jobs ---------------------------------------------------- Rossa Dairy Products has gone into administration. Ben Bouckley at Foodmanufacture.co.uk reports that corporate recovery specialist Begbies Traynor was appointed in early January to sell the firm's assets, and the administrator said that several potential buyers are interested in restarting production at the site and reappointing former staff. In its heyday, Rossa Dairy employed around 30 staff, although latterly numbers fell to 19, all of whom were made redundant just before Christmas when production stopped, according to Foodmanufacture.co.uk. "We still have three interested parties looking at the assets, since this is an asset-only sale. But they are all interested in the possibility of taking on the site lease and restarting production," Joint administrator Ravi Sembi told FoodManufacture.co.uk in an interview. Given that Rossa ceased trading "shortly before Christmas", Mr. Sembi added that the business would not be sold as a going concern, but said the site was in good shape for any buyer to restart production, the report relates. Foodmanufacture.co.uk notes Mr. Sembi said that, despite a reasonable turnover, discussions with the company's former directors revealed their fears about "predicted price increases from suppliers that the firm couldn't pass on to customers." "The directors also admitted to us that they got their customer mix a little wrong. As a Leicester-based firm, it was supplying products to the Asian food market, but its prices on some contracts were too low," Mr. Sembi added. Headquartered in Leicester, Rossa Dairy Products is an ice cream and dairy product manufacturer. * SCOTLAND: Corporate Insolvencies Rise 45.8% in 2010 ----------------------------------------------------- BBC News reports that the number of companies going bust in Scotland reached record levels in 2010. Citing new figures released by the Accountant in Bankruptcy, BBC discloses that 1,098 companies were declared insolvent during the year. That is an increase of 45.8% on the previous 12 months and a rise of 21.2% on the previous highest figure of 906 from 2002. Meanwhile, BBC News relates that the number of people becoming insolvent in Scotland has fallen on the same time last year. There were 4,583 personal insolvencies in the final three months of 2010, a fall of 11% on the same period last year. The greatest drop was among low income earners. =============== X X X X X X X X =============== * BOND PRICING: For the Week January 17 to January 21, 2011 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- BAWAG 7.5480 2/18/2035 EUR 67.88 DENMARK ------- KOMMUNEKREDIT 0.5000 2/3/2016 TRY 74.55 FINLAND ------- MUNI FINANCE PLC 1.0000 2/27/2018 AUD 69.10 MUNI FINANCE PLC 0.5000 9/24/2020 CAD 69.37 MUNI FINANCE PLC 0.5000 2/9/2016 ZAR 74.19 MUNI FINANCE PLC 1.0000 6/30/2017 ZAR 58.81 MUNI FINANCE PLC 0.2500 6/28/2040 CAD 24.07 MUNI FINANCE PLC 0.5000 3/17/2025 CAD 54.23 FRANCE ------ AIR FRANCE-KLM 4.9700 4/1/2015 EUR 16.41 ALCATEL-LUCENT 5.0000 1/1/2015 EUR 3.40 ALTRAN TECHNOLOG 6.7200 1/1/2015 EUR 4.82 ATOS ORIGIN SA 2.5000 1/1/2016 EUR 53.67 CALYON 6.0000 6/18/2047 EUR 32.80 CAP GEMINI SOGET 3.5000 1/1/2014 EUR 43.01 CAP GEMINI SOGET 1.0000 1/1/2012 EUR 43.58 CGG VERITAS 1.7500 1/1/2016 EUR 28.74 CLUB MEDITERRANE 6.1100 11/1/2015 EUR 18.99 CLUB MEDITERRANE 5.0000 6/8/2012 EUR 17.30 EURAZEO 6.2500 6/10/2014 EUR 58.02 FAURECIA 4.5000 1/1/2015 EUR 26.24 MAUREL ET PROM 7.1250 7/31/2014 EUR 17.10 MAUREL ET PROM 7.1250 7/31/2015 EUR 14.46 NEXANS SA 4.0000 1/1/2016 EUR 66.91 ORPEA 3.8750 1/1/2016 EUR 47.21 PEUGEOT SA 4.4500 1/1/2016 EUR 35.57 PUBLICIS GROUPE 3.1250 7/30/2014 EUR 39.71 PUBLICIS GROUPE 1.0000 1/18/2018 EUR 49.01 RHODIA SA 0.5000 1/1/2014 EUR 49.01 SOC AIR FRANCE 2.7500 4/1/2020 EUR 22.21 SOITEC 6.2500 9/9/2014 EUR 10.74 TEM 4.2500 1/1/2015 EUR 57.76 THEOLIA 2.7000 1/1/2041 EUR 10.69 GERMANY ------- DEUTSCHE BK LOND 3.0000 5/18/2012 CHF 66.05 DEUTSCHE BK LOND 0.5000 8/25/2017 BRL 55.05 ESCADA AG 7.5000 4/1/2012 EUR 18.74 HSH NORDBANK AG 4.3750 2/14/2017 EUR 61.47 L-BANK FOERDERBK 0.5000 5/10/2027 CAD 48.54 LB BADEN-WUERTT 2.5000 1/30/2034 EUR 73.50 SOLON AG SOLAR 1.3750 12/6/2012 EUR 27.93 GREECE ------ ATHENS URBAN TRN 4.8510 9/19/2016 EUR 71.74 ATHENS URBAN TRN 5.0080 7/18/2017 EUR 68.15 HELLENIC RAILWAY 4.5000 12/6/2016 JPY 58.50 HELLENIC REP I/L 2.9000 7/25/2025 EUR 47.27 HELLENIC REP I/L 2.3000 7/25/2030 EUR 48.03 HELLENIC REPUB 5.2000 7/17/2034 EUR 65.25 HELLENIC REPUB 4.5900 4/8/2016 EUR 71.47 HELLENIC REPUB 5.8000 7/14/2015 JPY 71.44 HELLENIC REPUB 5.0000 3/11/2019 EUR 59.54 HELLENIC REPUB 6.1400 4/14/2028 EUR 67.44 HELLENIC REPUB 5.2500 2/1/2016 JPY 67.51 HELLENIC REPUBLI 3.6000 7/20/2016 EUR 66.24 HELLENIC REPUBLI 4.6000 9/20/2040 EUR 56.54 HELLENIC REPUBLI 4.5000 9/20/2037 EUR 56.57 HELLENIC REPUBLI 5.3000 3/20/2026 EUR 62.25 HELLENIC REPUBLI 4.7000 3/20/2024 EUR 61.48 HELLENIC REPUBLI 6.2500 6/19/2020 EUR 70.61 HELLENIC REPUBLI 6.0000 7/19/2019 EUR 69.51 HELLENIC REPUBLI 5.9590 3/4/2019 EUR 69.78 HELLENIC REPUBLI 5.0140 2/27/2019 EUR 65.30 HELLENIC REPUBLI 4.6000 7/20/2018 EUR 64.71 HELLENIC REPUBLI 4.5900 4/3/2018 EUR 65.15 HELLENIC REPUBLI 4.6750 10/9/2017 EUR 66.85 HELLENIC REPUBLI 4.3000 7/20/2017 EUR 66.35 HELLENIC REPUBLI 5.9000 4/20/2017 EUR 71.40 HELLENIC REPUBLI 4.2250 3/1/2017 EUR 66.86 HELLENIC REPUBLI 4.0195 9/13/2016 EUR 67.77 HELLENIC REPUBLI 3.7000 7/20/2015 EUR 70.26 HELLENIC REPUBLI 3.6500 9/30/2015 EUR 70.46 NATIONAL BK GREE 3.8750 10/7/2016 EUR 73.75 IRELAND ------- AIB MORTGAGE BNK 5.0000 3/1/2030 EUR 52.85 AIB MORTGAGE BNK 5.5800 4/28/2028 EUR 58.92 AIB MORTGAGE BNK 4.8750 6/29/2017 EUR 70.99 AIB MORTGAGE BNK 5.0000 2/12/2030 EUR 52.89 ALLIED IRISH BKS 12.5000 6/25/2019 GBP 30.39 ALLIED IRISH BKS 10.7500 3/29/2017 EUR 30.25 ALLIED IRISH BKS 10.7500 3/29/2017 USD 30.01 ALLIED IRISH BKS 7.8750 7/5/2023 GBP 31.66 ALLIED IRISH BKS 11.5000 3/29/2022 GBP 30.00 ALLIED IRISH BKS 12.5000 6/25/2019 EUR 30.25 ALLIED IRISH BKS 5.2500 3/10/2025 GBP 30.63 BANK OF IRELAND 4.8750 1/22/2018 GBP 51.74 BANK OF IRELAND 10.7500 6/22/2018 GBP 52.25 BANK OF IRELAND 10.0000 2/12/2020 EUR 68.79 BANK OF IRELAND 10.0000 2/12/2020 GBP 67.76 BANK OF IRELAND 9.2500 9/7/2020 GBP 63.48 BANK OF IRELAND 5.6000 9/18/2023 EUR 46.24 BANK OF IRELAND 3.5850 4/21/2015 EUR 74.88 BK IRELAND MTGE 5.7600 9/7/2029 EUR 62.04 BK IRELAND MTGE 5.4500 3/1/2030 EUR 59.07 BK IRELAND MTGE 3.2500 6/22/2015 EUR 75.17 BK IRELAND MTGE 5.4000 11/6/2029 EUR 59.10 DEPFA ACS BANK 0.5000 3/3/2025 CAD 33.25 DEPFA ACS BANK 3.2500 7/31/2031 CHF 70.36 DEPFA ACS BANK 4.9000 8/24/2035 CAD 63.85 DEPFA ACS BANK 6.0000 10/7/2035 USD 73.57 DEPFA ACS BANK 5.1250 3/16/2037 USD 63.10 DEPFA ACS BANK 5.1250 3/16/2037 USD 62.74 DEPFA BANK PLC 3.1500 4/3/2018 EUR 70.30 EBS BLDG SOCIETY 4.9920 3/19/2015 EUR 74.45 IRISH GOVT 4.5000 4/18/2020 EUR 73.63 IRISH GOVT 5.4000 3/13/2025 EUR 72.59 IRISH LIFE PERM 4.8200 3/22/2015 EUR 74.32 IRISH LIFE PERM 4.2500 4/9/2015 EUR 72.70 IRISH NATIONWIDE 5.5000 1/10/2018 GBP 22.48 IRISH NATIONWIDE 13.0000 8/12/2016 GBP 24.95 ITALY ----- ABRUZZO REGION 4.4500 3/1/2037 EUR 72.91 CITY OF TURIN 5.2700 6/26/2038 EUR 65.54 TELECOM ITALIA 5.2500 3/17/2055 EUR 73.88 ARCELORMITTAL 7.2500 4/1/2014 EUR 31.74 BREEZE FINANCE 6.7080 4/19/2027 EUR 64.75 DEXIA BQ INT LUX 2.3900 12/7/2021 EUR 67.50 LIGHTHOUSE INTL 8.0000 4/30/2014 EUR 38.63 LIGHTHOUSE INTL 8.0000 4/30/2014 EUR 38.56 APP INTL FINANCE 11.7500 10/1/2005 USD 0.01 BK NED GEMEENTEN 0.5000 2/24/2025 CAD 52.48 BRIT INSURANCE 6.6250 12/9/2030 GBP 65.61 DGS INTL FIN BV 10.0000 6/1/2007 USD 0.01 ELEC DE CAR FIN 8.5000 4/10/2018 USD 56.69 INDAH KIAT INTL 12.5000 6/15/2006 USD 0.01 NATL INVESTER BK 25.9827 5/7/2029 EUR 19.21 NED WATERSCHAPBK 2.9270 6/30/2045 EUR 71.25 NED WATERSCHAPBK 0.5000 3/11/2025 CAD 53.31 Q-CELLS INTERNAT 5.7500 5/26/2014 EUR 73.33 RABOBANK 2.8050 8/28/2020 AUD 74.43 RBS NV EX-ABN NV 6.3160 6/29/2035 EUR 69.00 TJIWI KIMIA FIN 13.2500 8/1/2001 USD 0.01 NORWAY ------ EKSPORTFINANS 0.5000 5/9/2030 CAD 40.44 KOMMUNALBANKEN 0.5000 1/27/2016 ZAR 74.47 KOMMUNALBANKEN 0.5000 9/24/2014 BRL 72.99 CAIXA GERAL DEPO 5.3800 10/1/2038 EUR 65.97 PORTUGAL -------- CAIXA GERAL DEPO 4.2500 1/27/2020 EUR 77.15 PORTUGUESE OT'S 4.1000 4/15/2037 EUR 70.12 RUSSIA ------ APK ARKADA 17.5000 5/23/2012 RUB 0.38 ARKTEL-INVEST 12.0000 4/9/2012 RUB 0.05 BARENTSEV FINANS 20.0000 7/4/2011 RUB 1.61 BASHKIRENERGO 8.3000 3/9/2011 RUB 95.99 CENTREINVEST GRO 9.2500 6/24/2014 RUB 101.70 DVTG-FINANS 17.0000 8/29/2013 RUB 5.60 EMALIANS-FINANS 10.9700 7/8/2011 RUB 75.00 EUROKOMMERZ 16.0000 3/15/2011 RUB 0.01 GENERATING CO 8.5000 6/21/2011 RUB 99.00 IART 12.0000 8/4/2013 RUB 1.00 IZHAVTO 18.0000 6/9/2011 RUB 11.31 M-INDUSTRIYA 12.2500 8/16/2011 RUB 28.32 MAGNIT OJSC 8.2500 9/9/2013 RUB 75.00 MAGNIT OJSC 8.2500 9/9/2013 RUB 75.00 MAGNIT OJSC 8.2500 9/9/2013 RUB 75.00 MIG-FINANS 0.1000 9/6/2011 RUB 1.00 MIRAX 17.0000 9/17/2012 RUB 27.40 MIRAX 14.9900 5/17/2011 RUB 35.51 MOSCOW BANK R&D 8.5000 3/28/2013 RUB 100.26 MOSMART FINANS 0.0100 4/12/2012 RUB 1.81 MOSOBLGAZ 12.0000 5/17/2011 RUB 72.50 MOSOBLTRUSTINVES 20.0000 3/26/2011 RUB 6.99 NOK 10.0000 9/22/2011 RUB 11.01 NOK 12.5000 8/26/2014 RUB 4.01 NOVYE TORGOVYE S 15.0000 4/26/2011 RUB 70.00 RAILTRANSAUTO 17.5000 12/4/2013 RUB 99.00 RYBINSKKABEL 0.0100 2/28/2012 RUB 0.03 SAHO 10.0000 5/21/2012 RUB 30.01 SATURN 8.5000 6/6/2014 RUB 6.21 SEVKABEL-FINANS 10.5000 3/27/2012 RUB 3.40 SVOBODNY SOKOL 0.1000 5/24/2011 RUB 1.35 TECHNOSILA-INVES 7.0000 5/26/2011 RUB 0.01 TERNA-FINANS 1.0000 11/4/2011 RUB 6.07 TRANSCREDITFACTO 12.0000 6/11/2012 RUB 75.00 VESTER-FINANS 15.2500 8/11/2011 RUB 1.30 VKM-LEASING FINA 1.0000 5/18/2011 RUB 0.07 SPAIN ----- AYT CEDULAS CAJA 4.0000 3/24/2021 EUR 74.43 AYT CEDULAS CAJA 3.7500 6/30/2025 EUR 60.95 AYT CEDULAS CAJA 4.7500 5/25/2027 EUR 67.82 BANCAJA 1.5000 5/22/2018 EUR 58.53 BANCO GUIPUZCOAN 1.5000 4/18/2022 EUR 51.49 CAJA CASTIL-MAN 1.5000 6/23/2021 EUR 55.43 CAJA MADRID 4.1250 3/24/2036 EUR 66.30 CAJA MADRID 5.7550 2/26/2028 EUR 55.62 CAJA MADRID 4.0000 2/3/2025 EUR 73.15 CAJA MEDITERRANE 4.6000 7/31/2020 EUR 74.27 CEDULAS TDA 6 3.8750 5/23/2025 EUR 62.32 CEDULAS TDA A-5 4.2500 3/28/2027 EUR 63.21 CEDULAS TDA A-6 4.2500 4/10/2031 EUR 57.34 GENERAL DE ALQUI 2.7500 8/20/2012 EUR 65.37 IM CEDULAS 5 3.5000 6/15/2020 EUR 71.93 IM CEDULAS 7 4.0000 3/31/2021 EUR 74.60 JUNTA LA MANCHA 3.8750 1/31/2036 EUR 68.50 SWEDEN ------ SWEDISH EXP CRED 9.0000 8/12/2011 USD 10.07 SWEDISH EXP CRED 9.0000 8/28/2011 USD 10.28 SWEDISH EXP CRED 0.5000 1/25/2028 USD 51.74 SWEDISH EXP CRED 8.0000 11/4/2011 USD 9.09 SWEDISH EXP CRED 0.5000 9/29/2015 BRL 64.34 SWITZERLAND ----------- UBS AG 10.5800 6/29/2011 USD 40.03 UBS AG 13.3000 5/23/2012 USD 4.20 UBS AG JERSEY 14.6400 1/31/2011 USD 35.68 UBS AG JERSEY 16.1700 1/31/2011 USD 12.57 UBS AG JERSEY 15.2500 2/11/2011 USD 11.17 UBS AG JERSEY 11.0000 2/28/2011 USD 69.69 UBS AG JERSEY 12.8000 2/28/2011 USD 33.19 UBS AG JERSEY 11.4000 3/18/2011 USD 25.01 UBS AG JERSEY 10.9900 3/31/2011 USD 30.98 UBS AG JERSEY 16.1600 3/31/2011 USD 42.07 UBS AG JERSEY 10.8200 4/21/2011 USD 21.09 UBS AG JERSEY 10.5000 6/16/2011 USD 73.14 UBS AG JERSEY 13.0000 6/16/2011 USD 50.13 UBS AG JERSEY 10.2800 8/19/2011 USD 35.71 UBS AG JERSEY 10.3600 8/19/2011 USD 53.72 UBS AG JERSEY 11.1500 8/31/2011 USD 39.67 UBS AG JERSEY 9.3500 9/21/2011 USD 70.46 UBS AG JERSEY 9.4500 9/21/2011 USD 50.91 UBS AG JERSEY 3.2200 7/31/2012 EUR 53.10 UNITED KINGDOM -------------- BARCLAYS BK PLC 10.5100 5/31/2011 USD 13.00 BARCLAYS BK PLC 8.7500 9/22/2011 USD 73.65 BARCLAYS BK PLC 10.8000 7/31/2012 USD 27.83 BARCLAYS BK PLC 10.9500 5/23/2011 USD 65.68 BARCLAYS BK PLC 8.8000 9/22/2011 USD 16.75 BARCLAYS BK PLC 8.5500 1/23/2012 USD 11.56 BARCLAYS BK PLC 10.3500 1/23/2012 USD 21.32 BARCLAYS BK PLC 10.6500 1/31/2012 USD 45.71 BARCLAYS BK PLC 8.9500 4/20/2012 USD 16.30 BARCLAYS BK PLC 9.4000 7/31/2012 USD 11.41 BARCLAYS BK PLC 9.5000 8/31/2012 USD 29.99 BARCLAYS BK PLC 9.2500 8/31/2012 USD 35.27 BRADFORD&BIN BLD 5.5000 1/15/2018 GBP 45.52 BRADFORD&BIN PLC 7.6250 2/16/2049 GBP 47.47 BRADFORD&BIN PLC 6.6250 6/16/2023 GBP 43.47 CO-OPERATIVE BNK 5.8750 3/28/2033 GBP 69.31 EFG HELLAS PLC 5.4000 11/2/2047 EUR 46.25 EFG HELLAS PLC 6.0100 1/9/2036 EUR 21.38 ENTERPRISE INNS 6.3750 9/26/2031 GBP 74.35 HBOS PLC 6.0000 11/1/2033 USD 68.40 HBOS PLC 6.0000 11/1/2033 USD 68.40 HBOS PLC 4.5000 3/18/2030 EUR 70.77 HEALTHCARE SUPP 2.0670 2/19/2043 GBP 69.12 KEELE RESIDENT 2.1080 1/31/2047 GBP 74.32 MAX PETROLEUM 6.7500 9/8/2012 USD 64.16 NORTHERN ROCK 5.7500 2/28/2017 GBP 70.58 NORTHERN ROCK 4.5742 1/13/2015 GBP 75.90 PRINCIPALITY BLD 5.3750 7/8/2016 GBP 67.47 PUNCH TAVERNS 8.3740 7/15/2029 GBP 52.79 PUNCH TAVERNS 6.4680 4/15/2033 GBP 40.38 PUNCH TAVERNS 7.5670 4/15/2026 GBP 49.92 ROYAL BK SCOTLND 6.3160 6/29/2030 EUR 68.31 SKIPTON BUILDING 6.7500 5/30/2022 GBP 66.55 SKIPTON BUILDING 5.6250 1/18/2018 GBP 69.84 UNIQUE PUB FIN 6.4640 3/30/2032 GBP 63.98 WESSEX WATER FIN 1.3690 7/31/2057 GBP 31.75 YORKSHRE BLD SOC 6.3750 4/26/2024 GBP 78.75 ********* 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, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2011. 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 * * *