/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110427.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, April 27, 2011, Vol. 12, No. 82 Headlines B E L G I U M AGEAS HYBRID: Fitch Affirms 'BB' Rating on Capital Instruments C Z E C H R E P U B L I C SAZKA AS: Board Members Meet with Kellner, Komarek Over Future G E R M A N Y BAYERISCHE LANDESBANK: Fitch Lowers Rating on Securities to 'CCC' PFLEIDERER AG: Creditors to Provide EUR100 Million Credit Line I R E L A N D FLEET STREET: S&P Puts 'B' Rating on Class D Notes on Watch Neg. WESTON AERODROME: NAMA Appoints K. Wallace of KPMG as Receiver L U X E M B O U R G NRB FINANCE: Fitch Rates Exchangeable Bonds at 'B(exp)' R U S S I A AZOVSTAL PJSC: Fitch Affirms 'B' Issuer Default Ratings FOREIGN ECONOMIC: S&P Upgrades Counterparty Credit Rating to 'B' SOTSGORBANK OJSC: Moody's Cuts Long-Term Deposit Ratings to 'C' U N I T E D K I N G D O M ALL SAINTS: Must Complete Rescue Buyout or Face Administration BENNETTS: Hughes Completes Most of Firm's Outstanding Orders BRABY: Goes Into Administration, Cuts 27 Jobs BUSINESS MORTGAGE: Fitch Affirms 'CC' Rating on 2039 Class C Notes BUTE COURT: Goes Into Administration, On Sale for GBP850,000 FLEMING DEVELOPMENTS: Administrators Sell Olympic Way Site LOSELEY DAIRY: Goes Into Administration, Axes 83 Jobs MCINERNEY HOLDINGS: Rothbury Housing Future Uncertain MEDITERRANEAN OIL: Survival Hinges on Financial Rescue Package NORTH WEST: To Enter Into Company Voluntary Arrangement OPERA FINANCE: Fitch Affirms Rating on Class D Notes at 'BBsf' PLYMOUTH ARGYLE: Owes GBP17.5 Million to Creditors PRONUPTIA CHELMSFORD: Goes Into Liquidation RANK GROUP: S&P Affirms 'B+' Long-Term Corporate Credit Rating SILENTNIGHT HOLDINGS: MP Urges Creditors to Approve CVA SOUTHERN WATER: Fitch Assigns 'B+' Final Senior Secured Rating SPORT MEDIA: David Sullivan Saves Sunday Sports From Collapse VISIT LONDON: Move Into Administration Leads to Pensions Row WASTE2ENERGY HOLDINGS: Scottish Court Orders Liquidation of Unit YORKSHIRE BUILDING: Fitch Affirms BB+ Rating on Convertible Notes X X X X X X X X * Corinne Ball to Lead Jones Day's Europe Restructuring Practice ********* ============= B E L G I U M ============= AGEAS HYBRID: Fitch Affirms 'BB' Rating on Capital Instruments -------------------------------------------------------------- Fitch Ratings has affirmed AG Insurance's Insurer Financial Strength (IFS) rating at 'A+' and Long-term Issuer Default Rating (IDR) at 'A'. Fitch has also affirmed the Long- and Short-term IDRs of the Ageas holding companies: ageas SA/NV, ageas N.V. and Ageas Insurance International N.V. (which merged with Ageas Insurance N.V. and ageas Utrecht N.V.). The agency has withdrawn the ratings of Brussels Liquidation Holding, ageas Utrecht N.V. and ageas Insurance N.V. as these entities no longer exist. The Outlooks on the IFS rating and the Long-term IDRs are Stable. Fitch has also affirmed Ageas Insurance Company (Asia) Ltd's (AICA) IFS ratings and Long-term IDRs, both with Stable Outlooks. Millenniumbcp-Ageas operating entities' (MBCPA) IFS ratings remain on Rating Watch Negative (RWN). AG Insurance's ratings continue to reflect its strong capital adequacy, leading business position in Belgium and healthy profitability. These strengths are offset by the company's lack of geographical diversification. AG Insurance reported a net profit of EUR351 million in 2010 compared with EUR432 million in 2009, mainly due to lower non-recurring gains, higher weather- related claims and one-off losses on its bond portfolio. Fitch expects AG Insurance's solvency to remain solid and that no exceptional dividend will be paid to the holding companies in the foreseeable future. Key rating drivers that could lead to an upgrade of AG Insurance include increased profitability in both the life and non-life segments. Conversely, deterioration in capital adequacy to a level significantly below 200% over a sustainable period could result in a downgrade. AICA's rating does not assume group support and reflects further strengthening of the company's standalone capitalization on a risk-adjusted basis through the continued accumulation of operating surplus. Stable investment returns, along with ongoing new business growth in the regular premium segment further underpinned the company's operating profitability in 2010. Key rating driver that could lead to an upgrade of AICA include continued progress in increasing its market presence by further growing existing or new distribution channels. Conversely, deterioration in the local solvency margin to a level below 220% over a sustainable period could result in a downgrade. The ratings of the Ageas holding companies continue to take into account the fact that they have more cash than needed to repay their debt. Nevertheless, Fitch believes that the holding companies face litigation risk as a consequence of the restructuring of the Ageas group, which is reflected by their IDRs being two notches lower than that of AG Insurance. The ratings actions are: AG Insurance -- IFS rating affirmed at 'A+'; Outlook Stable -- Long-term IDR affirmed at 'A'; Outlook Stable Ocidental-Companhia Portuguesa de Seguros de Vida S.A. -- 'BBB' IFS rating remains on RWN Ocidental-Companhia Portuguesa de Seguros S.A. -- 'BBB' IFS rating remains on RWN Companhia Portuguesa de Seguros de Saude S.A. -- 'BBB' IFS rating remains on RWN Ageas Insurance Company (Asia) Ltd -- IFS rating affirmed at 'A-'; Stable Outlook -- Long-term IDR affirmed at 'BBB+'; Stable Outlook Ageas Capital (Asia) Ltd -- Senior unsecured rating affirmed at 'BBB+' ageas SA/NV -- Long-term IDR affirmed at 'BBB+'; Outlook Stable -- Short-term IDR affirmed at 'F2' ageas N.V. -- Long-term IDR affirmed at 'BBB+'; Outlook Stable -- Short-term IDR affirmed at 'F2' Brussels Liquidation Holding -- Long-term IDR withdrawn -- Short-term IDR withdrawn ageas Utrecht N.V. -- Long-term IDR withdrawn -- Short-term IDR withdrawn Ageas Insurance International -- Long-term IDR affirmed at 'BBB+'; Outlook Stable -- Short-term IDR affirmed at 'F2' ageas Finance N.V. -- Senior unsecured affirmed at 'BBB' Ageas Hybrid Financing -- Hybrid capital instruments affirmed at 'BB+' Ageasfinlux SA -- Hybrid capital instruments affirmed at 'BB' =========================== C Z E C H R E P U B L I C =========================== SAZKA AS: Board Members Meet with Kellner, Komarek Over Future -------------------------------------------------------------- Ladka Bauerova at Bloomberg News, citing Mlada Fronta Dnes, reports that Sazka AS's board members met with billionaires Petr Kellner and Karel Komarek to discuss the future of the company. According to Bloomberg, the newspaper said Messrs. Kellner and Komarek, who reportedly invested over CZK4 billion into buying up Sazka's debt, presented their plan to maintain and further develop the company. The plan is conditioned on the shareholders firing Sazka Chief Executive Officer Ales Husak, the report noted. As reported by the Troubled Company Reporter-Europe, CTK, citing information made public in the insolvency register, said that the Prague City Court declared Sazka insolvent on March 29 and named Josef Cupka as insolvency administrator. CTK disclosed that the court also decided on calling a meeting of creditors for May 26. It has not determined the way how the insolvency will be solved, CTK noted. The court has three months from the decision on insolvency for this, after the meeting of creditors at the earliest, according to CTK. Data from the insolvency register showed that Sazka owed CZK1.37 billion to 26 creditors in overdue debts as of March 10, CTK noted. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= G E R M A N Y ============= BAYERISCHE LANDESBANK: Fitch Lowers Rating on Securities to 'CCC' ----------------------------------------------------------------- Fitch Ratings has downgraded Bayerische Landesbank's (BayernLB; 'A+'/Rating Watch Negative (RWN)) US$850 million non-cumulative trust preferred securities (XS0290135358), issued through BayernLB Capital Trust I, to 'CCC' from 'B-'. BayernLB's other ratings are unaffected by this rating action. The downgrade follows BayernLB's announcement that it will not pay any coupon on the next payment date (May 31, 2011). In Fitch's view, uncertainty remains over whether BayernLB will make any payments on this hybrid instrument in 2012, taking into consideration the amount of replenishment required in its silent participations before this can happen. BayernLB informed BayernLB Capital Trust I on April 15, 2011 that it does not expect to show any net retained profit in its audited unconsolidated financial statements (German GAAP) for the year to December 31, 2010 and that it therefore does not expect to have distributable profits within the terms of the instrument for the 2010 financial year. Pursuant to the terms of the instrument, the obligation to pay is triggered and payments are deemed to be declared if the bank or any of its subsidiaries declares or pays capital payments, dividends or other distributions on any parity or junior securities or redems, repurchases or otherwise acquires any parity or junior securities -- even if BayernLB does not report a distributable profit. This is the first time that none of these pre-requisites for the declaration and payment of coupons on the trust preferred securities of BayernLB Capital Trust I have not been fulfilled. BayernLB is currently undergoing restructuring, and the European Commission (EC) is conducting an investigation into the bank relating to state aid received. The EC requested the bank does not make any interest or dividend payments on profit participation, hybrid tier 1 capital or silent participations unless it is contractually obliged to do so. BayernLB's 'A+' Issuer Default Rating is based on Fitch's view that there is an extremely high probability that further state support would be provided to the bank in case of need. The RWN reflects the ongoing EC investigation, which Fitch expects to be concluded in H111. At end-2008 BayernLB received support from the Free State of Bavaria in the form of a EUR4.8bn risk shield for its ABS portfolio and EUR10 billion in fresh capital. As a result, Bavaria's stake in the bank increased to 94% from 50%, diluting the Association of Bavarian Savings Banks' stake to 6%. For FYE10 BayernLB announced consolidated net income of EUR635 million after a net loss of EUR2,619 million the year before. However, unconsolidated financial statements (German GAAP) as of December 31, 2010 show a net profit of EUR544 million which the bank will use to fully replenish profit participation rights by EUR174 million and to replenish EUR370 million of the shortfall in its silent participations, bringing these up to 51% of nominal value. PFLEIDERER AG: Creditors to Provide EUR100 Million Credit Line -------------------------------------------------------------- Mariajose Vera at Bloomberg News reports that Pfleiderer AG said its creditors will waive their claim to part of their financial receivables equal to 40% of the utilized credit lines, plus part of the accrued interest and fees. According to Bloomberg, Pfleiderer also said its creditors will provide the company with an additional credit line of EUR100 million in May. Headquartered in Neumarkt, Germany, Pfleiderer AG -- http://www.pfleiderer.com/-- is a producer and supplier of engineered wood products. It acts as a partner for wood trade outlets, interior designers, the building and do-it-yourself trade, and the furniture industry in more than 80 countries worldwide. The Company offers a range of base products, such as raw chipboard and particleboard, tongue and groove board, medium- density fiberboard and high- density fiberboard, and surfaced products, such as melamine-faced chipboard, high-pressure laminates and post-forming elements, laminate flooring and a range of films and surfacings. The Company operates through three geographical segments: Western Europe, including Germany and Sweden; Eastern Europe, consisting of Poland and Russia, and North America, comprised of Canada and the United States. * * * As reported by the Troubled Company Reporter-Europe on Dec. 27, 2010, Fitch Ratings downgraded Pfleiderer AG's Long-term Issuer Default Rating to 'CC' from 'B-' and removed it from Rating Watch Negative. It also downgraded the Short-term IDR to 'C' from 'B'. The subordinated hybrid bond was affirmed at 'C' with a Recovery Rating of 'RR6'. The rating action followed Pfleiderer signaling during its analyst conference on November 11, 2010, that there might be a potential breach of a covenant at the end of Q410. ============= I R E L A N D ============= FLEET STREET: S&P Puts 'B' Rating on Class D Notes on Watch Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch negative its ratings on Fleet Street Finance Three PLC's class D and E notes. The rating on the class A1, A2, B and C notes in the transaction remains unaffected. "We have taken the rating action because we believe there is a risk, following the borrower's prepayment of the GSW loan, that the class D and E notes will suffer an interest shortfall on the July 2011 interest payment date (IPD)," S&P noted. The GSW loan repaid in full in February 2011, in advance of its scheduled maturity date. "We would generally expect the cash manager to apply payment proceeds to the notes on the April IPD to reduce the principal balance of the notes and, in turn, the interest due on the notes. However, we understand that only EUR195 million out of the EUR222 million loan prepayment proceeds has been applied toward the note redemption while the note trustee is seeking guidance from the High Court of England and Wales that will enable it to decide how to allocate the prepayment proceeds-- sequentially or modified pro rata," according to S&P. "Based on our understanding of the transaction documents, the cash manager would apply the GSW loan repayment proceeds to the notes on a modified pro rata basis, unless a sequential payment trigger has occurred, in which case the proceeds would be applied sequentially. The question at issue for the trustee is whether a sequential payment trigger has occurred, and it is seeking the guidance of the court on the interpretation of the documents in this respect. We believe the outcome of this decision (i.e., whether the payment proceeds should be applied on a modified pro rata or on a sequential basis) will likely not, in and of itself, affect our ratings. The balance (EUR27 million out of the EUR222 million GSW loan proceeds) will not be applied to the notes until this question is resolved," S&P stated. "We believe some notes may suffer interest shortfalls on future IPDs because we believe there will be a mismatch between loan and note obligations. Until the entire proceeds of the GSW loan are applied to reduce the principal balance, the issuer's interest obligation will not be reduced. As interest is no longer forthcoming from the GSW loan, the issuer will need to draw on other sources, such as a liquidity facility, to meet the note interest in full. However, the liquidity facility in this transaction is at the loan level and it is not available to cover shortfalls on the notes, in our view. As a consequence, we believe the class D and E notes may suffer interest shortfalls," S&P related. "Our ratings address timely payment of interest, and accordingly we have placed the ratings on these notes on CreditWatch. We aim to resolve this rating action after the April IPD. An interest shortfall may result in negative rating action," S&P added. At closing in June 2007, Fleet Street Finance Three acquired five loans secured by 448 properties in Germany and The Netherlands. Four of the five loans remain outstanding and the balance of the notes is EUR947.7 million (down from EUR1,105.4 million at closing). The final maturity date of the notes is in October 2016. Ratings List Class Rating To From Fleet Street Finance Three PLC EUR1.105 Billion Commercial Mortgage-Backed Floating-Rate Notes Ratings Placed on CreditWatch Negative D B (sf)/Watch Neg B (sf) E B- (sf)/Watch Neg B- (sf) WESTON AERODROME: NAMA Appoints K. Wallace of KPMG as Receiver -------------------------------------------------------------- Colm Keena at The Irish Times relates that Kieran Wallace of KPMG has been appointed as receiver to the Weston Aerodrome, six apartment blocks adjacent to the Citywest Hotel, and the Palmerstown Estate in Co Kildare by the National Asset Management Agency. Businessman Jim Mansfield on April 20 said he had been expecting NAMA to appoint a receiver to some of his family's assets, The Irish Times cites. He said he was still working on a business plan but had been expecting the NAMA move. Mr. Mansfield, as cited by The Irish Times, said the businesses owed approximately EUR60 million, to Irish Nationwide, and had not been able to service their debts. The Irish Times notes that Mr. Mansfield said he did not have income from the three businesses, as they were intended as investments that would be developed and then sold. Mr. Wallace, The Irish Times says, will now secure the firm's assets and the associated incomes, and develop a future strategy for the businesses. The six apartment buildings at Citywest are owned by HSS, the unlimited Mansfield company which was placed in liquidation earlier this year. The Weston Aerodrome in Co Dublin is owned by another unlimited company, Fallowdale, which is owned by the same two Isle of Man companies as HSS. =================== L U X E M B O U R G =================== NRB FINANCE: Fitch Rates Exchangeable Bonds at 'B(exp)' ------------------------------------------------------- Fitch Ratings has assigned NRB Finance S.A.'s (NRBF) upcoming issue of unsubordinated limited recourse exchangeable bonds an expected 'B(exp)' Long-term rating and an expected 'RR4' Recovery Rating. The bonds will be used solely for financing a loan to Russia's National Reserve Bank (NRB), rated Long-term Issuer Default (IDR) 'B'/Stable, Short-term IDR 'B', Individual 'D', Support '5', Support Rating Floor 'No Floor' and National Long- term rating 'BBB(rus)'/Stable. The expected rating addresses the risks related to the timely payment of the bonds' principal and interest. The rating does not address the risks or the possible benefits which accrue to bondholders as a result of their option to exchange the bonds into the shares of OJSC Aeroflot ('BB+'/Stable), as Fitch is not in a position to opine on Aeroflot's potential future share price. The final ratings are contingent on the receipt of final documents conforming materially to information already received. NRBF, a special purpose vehicle (SPV), incorporated under the laws of the Luxembourg, will only pay bondholders principal and interest (if any) received from NRB. The loan agreement contains covenants prohibiting mergers and disposals by NRB and its subsidiaries (the group), as well as certain payments and distributions by the group and transactions between the bank and its affiliates. The claims under the loan agreement will rank equally with the claims of NRB's other unsecured unsubordinated creditors. The bonds have a maturity of five years, with a put option in three years time. The bonds are exchangeable and may be converted at the discretion of bondholders into ordinary shares of Aeroflot, which are currently booked on NRB's balance sheet. Under the terms of the transaction, Aeroflot shares will be placed with Cyprus-based SPVs, while NRBF will receive a call option for the purchase of these shares at a price corresponding to the notional amount of bonds outstanding. In the event of default, bondholders would have a final opportunity to exchange their bonds for Aeroflot shares at the predefined rate and to forfeit any further claims to the issuer. Alternatively, bondholders may choose, alongside senior unsecured creditors, to claim the repayment of principal and accrued interest from the issuer. NRB's ratings take into account its high exposure to equity investments, narrow franchise and potential contingent risks relating to entities of the broader National Reserve Corporation (NRC). Fitch also notes the sizable dividend payment completed in Q111, the recent transfer of some of the bank's securities portfolio to a mutual fund and the encumberance under the current transaction of the bank's shares in OJSC Aeroflot. However, the ratings also reflect NRB's strong capital position (even after the Q111 dividend payment) and currently comfortable liquidity. NRB is a Moscow-based bank with assets of RUB58.3 billion at end- 2010, and accounts for about 60% of the assets of the broader NRC. Alexander Lebedev is the largest shareholder of NRC, which holds a 59.8% stake in the bank. In addition, Mr. Lebedev and his son directly hold a 18.4% stake. NRB is highly capitalized (total Basel I capital ratio was 51.5% at end-2010; proforma 35.6% allowing for the Q111 dividend payment), while its earning assets are almost evenly split between the commercial loan book and investments in equities, mostly of Gazprom and Aeroflot. =========== R U S S I A =========== AZOVSTAL PJSC: Fitch Affirms 'B' Issuer Default Ratings ------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn PJSC Azovstal Iron and Steel Works' (Azovstal) ratings: -- Long-term foreign currency IDR: affirmed at 'B'/Outlook Stable; withdrawn -- Short-term foreign currency IDR: affirmed at 'B'; withdrawn -- Senior unsecured foreign currency rating: affirmed at 'B'; withdrawn -- Long-term local currency IDR: affirmed at 'B'/Outlook Stable; withdrawn -- Short-term local currency IDR: affirmed at 'B'; withdrawn -- National Long-term rating: affirmed at 'AA-(ukr)/Outlook Stable; withdrawn The ratings withdrawal follows the issuer's repayment of its sole outstanding Eurobond issue in late February. Fitch will no longer provide ratings or analytical coverage of this issuer. FOREIGN ECONOMIC: S&P Upgrades Counterparty Credit Rating to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services said it had raised its long- term counterparty issuer credit rating on Russia-based Foreign Economic Industrial Bank (Vneshprombank) to 'B' from 'B-'. The outlook is stable. At the same time, the Russia national scale rating was raised to 'ruA-' from 'ruBBB'. The 'C' short-term rating was affirmed. "The upgrade reflects our view that Vneshprombank has demonstrated positive business development by expanding its customer franchise, while keeping better-than-system-average asset quality indicators and a high liquidity cushion," S&P stated. At the same time, the bank's high single-name funding concentrations, relatively aggressive growth plans, and modest profitability constrain the ratings. The ratings reflect the bank's stand-alone credit profile and do not include any uplift for extraordinary external support from the owners or the government. A number of legal entities and private individuals own Vneshprombank. The largest stakes belong to Alexander Zurabov (11.89%) and the bank's CEO, Larissa Markus (11.02%). Ms. Markus is the key decision-maker on the bank's strategy and its implementation. The shareholders' personal connections are helping the bank to develop its customer franchise. The stable outlook balances Vneshprombank's positive commercial performance and high balance-sheet liquidity with the challenges it is likely to face amid targeted high growth. Ratings upside could follow the bank's demonstrating breakthrough achievements in its market position and financial performance, including improvement in profitability from the NIM of 2.12% and ROA of 0.8% seen in 2010, while controlling its credit risk. Maintenance of a stable customer deposit base with a meaningful reduction in the share of large deposits from 80%, keeping adequate capitalization amid planned asset growth, and improving transparency on its counterparties could also contribute to a positive rating action. Ratings downside could follow a significant deterioration of Vneshprombank's liquidity and funding profile , with substantial withdrawal of deposits, asset quality falling more than the market average, or if the shareholders stop supporting the bank's capitalization. SOTSGORBANK OJSC: Moody's Cuts Long-Term Deposit Ratings to 'C' --------------------------------------------------------------- Moody's Investors Service has downgraded Sotsgorbank, OJSC's long-term local and foreign-currency deposit ratings to C from B3, its bank financial strength rating (BFSR) to E from E+ and its national-scale rating (NSR) to C.ru from Baa2.ru. The outlook on the global-scale ratings is stable. The rating actions on the long-term ratings and the BFSR conclude Moody's review for possible downgrade initiated on March 10, 2011. Ratings Rationale Moody's says that the rating actions were triggered by the withdrawal of Sotsgorbank's banking licence by the Central Bank of Russia (CBR) on April 18, 2011, "due to breaching the federal laws on banking activity, CBR's regulatory normatives and misrepresentation of financial reporting figures" (quoted from www.cbr.ru). The downgrade of the deposit ratings to C therefore reflects Moody's expectation that following the withdrawal of the banking licence, Sotsgorbank's depositors may incur a loss of more than 50%, with the exception of private individuals with deposits at the bank up to RUB700,000 (which are eligible for 100% repayment by the State Corporation Deposit Insurance Agency). Moody's expectation of very low recovery for creditors is based on the historical data for similar cases in Russia, when banks' licenses have been withdrawn. In many such cases, a substantial part of the banks' assets have been embezzled by the former managers or shareholders. The previous rating action on Sotsgorbank was on March 10, 2011, when Moody's placed the following ratings of Sotsgorbank on review for possible downgrade: E+ BFSR, B3 long-term local and foreign- currency long-term deposit ratings and Baa2. ru national scale rating (NSR). The principal methodologies used in rating Sotsgorbank were "Bank Financial Strength Ratings: Global Methodology", published in February 2007, and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology", published in March 2007. Headquartered in Moscow, Russia, Sotsgorbank reported total assets of US$456 million and shareholders' equity of US$67 million as of year-end 2010, according to the bank's statutory financial statements. Moody's Interfax Rating Agency's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".ru" for Russia. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Implementation Guidance published in August 2010 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings." About Moody's and Moody's Interfax Moody's Interfax Rating Agency (MIRA) specializes in credit risk analysis in Russia. MIRA is controlled by Moody's Investors Service, a leading provider of credit ratings, research and analysis covering debt instruments and securities in the global capital markets. Moody's Investors Service is a subsidiary of Moody's Corporation (NYSE: MCO). =========================== U N I T E D K I N G D O M =========================== ALL SAINTS: Must Complete Rescue Buyout or Face Administration -------------------------------------------------------------- The Press Association reports that All Saints must complete a rescue buy-out deal by April 26, or face administration. The Sunday Telegraph reported that Lloyds Banking Group, the retailer's lender, are engaged in talks with the retailer about finding buyers for the stakes owned by Kaupthing and Glitnir, the Icelandic banks, The Press Association relates. Lloyds, which has lent GBP28.5 million to the retailer, has placed KPMG, the accountancy firm, on standby to initiate administration proceedings, according to The Press Association. The report relates that a consortium led by U.S. private equity firm Goode Partners emerged as the likely candidate for the Icelandic banks' holdings, earlier this month. As reported in the Troubled Company Reporter-Europe on April 25, 2011, MailOnline said that All Saints was on the verge of collapsing into administration on April 20, as hopes of a last-ditch rescue faded. A consortium fronted by U.S. private equity firm Goode Partners was crumbling on April 20, according to MailOnline. The report related that one investor pulled out and had to be replaced as negotiations over the sale of a controlling stake in the retailer hung on by a thread. MailOnline disclosed that All Saint Chief Executive Stephen Craig dismissed speculation that Goode had walked away, saying, 'Goode are still there and believe they can complete the transaction.' The Press Association says that if a deal is done, Goode will share control of All Saints with Kevin Stanford, the retail magnate who co-founded the Karen Millen chain with his ex-wife of the same name. The report notes that the partnership is expected to ease some of the financial pressure on the business by paying off some of its GBP53 million debt pile. All Saints is a fashion chain. The business was established in 1994 and best known for its distinctive stores decked out with 10,000 vintage Singer sewing machines. It employs 2,000 staff. BENNETTS: Hughes Completes Most of Firm's Outstanding Orders ------------------------------------------------------------ Eastern Daily Press reports that Lowestoft-based Hughes Electrical said over 80% of more than 1000 customers, who were worried about items they had bought from Bennetts before it went into administration, have now had their orders resolved. Hughes Electrical re-opened the Bennetts stores in Hall Road, Norwich, and in Cromer and Dereham two weeks ago. Hughes Electrical Managing Director Robert Hughes confirmed the three Norfolk stores were back operating fully and most outstanding orders were sorted, according to Eastern Daily Press. Headquartered in Norfolk Bennetts is an independent electrical retailer. The electrical company has its head office in Bowthorpe and has 14 stores across the country, including outlets in Norwich, Costessey, Great Yarmouth, Holt, Cromer, King's Lynn, Diss and Dereham. BRABY: Goes Into Administration, Cuts 27 Jobs --------------------------------------------- Michael Ribbeck at Evening Post reports that Braby has gone into administration, firing 27 staff among its 53 employees. Staff at the firm's factory on March Road have not been paid for several months and suppliers were refusing to make deliveries of the materials needed to keep the factory running unless they were paid up front, according to Evening Post. Workers, according to Evening Post, knew the firm was facing serious problems and matters came to a head when a deal to sell Braby to foreign owners fell through. The talks which had been taking place for months fell apart when the two firms failed to reach an agreement on a price, Evening Post relates. As a result, administrators from accountancy firm Grant Thornton were called in over the weekend to take control of the firm, Evening Post states. Evening Post discloses that Nigel Morrison and Alistair Wardell from the Bristol accountancy firm have been appointed as joint administrators and have taken control of day-to-day running of the firm while its future is sorted out. It is understood that the administrators are already on the look-out for potential buyers, the report relates. Braby is a 172-year-old Bristol engineering firm. The firm specializes in making grain silos and aluminum storage tanks. The business has manufactured aluminum and stainless steel silos, tanks and specialist storage for a range of industries including food, plastics, chemicals and pharmaceuticals from its factory. BUSINESS MORTGAGE: Fitch Affirms 'CC' Rating on 2039 Class C Notes ------------------------------------------------------------------ Fitch Ratings has upgraded one tranche, affirmed 38 tranches and downgraded one tranche of the Business Mortgage Finance PLC (BMF) series and revised the Outlooks on 10 tranches. The rating actions follow a satisfactory review of all of the transactions. The Outlook revisions are primarily due to sequential pay-down continuing to increase credit enhancement and the stabilization of the reserve funds for all transactions except BMF 6 and 7. The decline in BMF6 and 7's reserve funds has slowed, possibly as a result of fixed rate borrowers reaching the end of their fixed rate periods and reverting to a floating rate, allowing them to benefit from the currently low interest rates. The BMF transactions are securitizations of mortgages to small and medium-sized enterprises and the owner managed business community. A performance update reviewing the performance migration in the BMF series will be shortly available on www.fitchratings.com. The rating actions are: BMF1 (due 2036): -- GBP11m class M (XS0186220769): affirmed at 'AAA'; Outlook Stable -- GBP5.3m class B (XS0186221577): affirmed at 'AA'; Outlook Stable BMF2 (due 2037): -- GBP22m class M notes (XS0203851380): upgraded to 'AAA' from 'AA'; Outlook revised to Stable from Positive -- GBP10.1m class B notes (XS0203851463): affirmed at 'A'; Outlook revised to Positive from Stable BMF3 (due 2038): -- GBP12.5m class A1 notes (XS0223481325): affirmed at 'AAA'; Outlook Stable -- Detachable A1 coupon (XS0223483610): affirmed at 'AAA'; Outlook Stable -- EUR13m class A2 notes (XS0223481598): affirmed at 'AAA'; Outlook Stable -- Detachable A2 coupon (XS0223483883): affirmed at 'AAA'; Outlook Stable -- GBP42.5m class M notes (XS0223481838): affirmed at 'A'; Outlook Stable -- GBP9.5m class B1 notes (XS0223482307): affirmed at 'BBB'; Outlook Stable -- EUR8m class B2 notes (XS0223482729): affirmed at 'BBB'; Outlook Stable -- GBP2.5m class C notes (XS0223483024): affirmed at 'BB'; Outlook Stable BMF4 (due 2045): -- GBP71.2m class A (XS0249507947): affirmed at 'AAA'; Outlook Stable -- Detachable A coupon (XS0250410114): affirmed at 'AAA'; Outlook Stable -- GBP41.3m class M (XS0249508242): affirmed at 'A'; Outlook Stable -- GBP15m class B (XS0249508754): affirmed at 'BB'; Outlook Stable -- GBP7.3m class C (XS0249509133): affirmed at 'B'; Outlook revised to Negative from Stable BMF5 (due 2039): -- GBP55.9m class A1 notes (XS0271320060): affirmed at 'AAA': Outlook Stable -- Detachable A1 coupon (XS0271321035): affirmed at 'AAA': Outlook Stable -- EUR100.5m class A2 notes (XS0271323163): affirmed at 'AAA': Outlook Stable -- Detachable A2 coupon (XS0271323676): affirmed at 'AAA': Outlook Stable -- GBP27m class M1 notes (XS0271324724): affirmed at 'BBB+'; Outlook revised to Stable from Negative -- EUR36.5m class M2 notes (XS0271324997): affirmed at 'BBB+'; Outlook revised to Stable from Negative -- GBP12m class B1 notes (XS0271325291): affirmed at 'B+'; Outlook Negative -- EUR11.5m class B2 notes (XS0271325614): affirmed at 'B+'; Outlook Negative -- GBP8.7m class C notes (XS0271326000): affirmed at 'CC'; Recovery Rating of 'RR5' BMF6 (due 2040): -- GBP71m class A1 notes (XS0299445808): affirmed at 'AAA', Outlook revised to Stable from Negative -- Detachable A1 coupon (XS0299535384): affirmed at 'AAA': Outlook Stable -- EUR268.4m class A2 notes (XS0299446103): affirmed at 'AAA': Outlook revised to Stable from Negative -- Detachable A2 coupon (XS0299536515): affirmed at 'AAA': Outlook Stable -- GBP38m class M1 notes (XS0299446442): affirmed at 'BBB'; Outlook Negative -- EUR55.6m class M2 notes (XS0299446798): affirmed at 'BBB'; Outlook Negative -- EUR39.1m class B2 notes (XS0299447507): downgraded to 'CCC' from 'B'; Recovery Rating of 'RR3' -- GBP17.3m class C notes (XS0299447846): affirmed at 'CC'; Recovery Rating of 'RR5' BMF7 (due 2041): -- GBP146.7m class A1 notes (XS0330211359): affirmed at 'AAA': Outlook revised to Stable from Negative -- Detachable A1 coupon (XS0330212597): affirmed at 'AAA': Outlook Stable -- GBP38.7m class M1 notes (XS0330220855): affirmed at 'BBB'; Outlook revised to Stable from Negative -- EUR5m class M2 notes (XS0330222638): affirmed at 'BBB'; Outlook revised to Stable from Negative -- GBP12.4m class B1 notes (XS0330228320): affirmed at 'BB-'; Outlook Negative -- GBP7.9m class C notes (XS0330229138): affirmed at 'CCC'; Recovery Rating of 'RR5' BUTE COURT: Goes Into Administration, On Sale for GBP850,000 ------------------------------------------------------------ Herald Express reports that the Bute Court Hotel and the Torbay Court Hotel, formerly owned by Stuart Travis, went into administration at the beginning of March under insolvency firm Begbies Traynor. Begbies Taylor has now asked the King Sturge leisure team in Exeter to market the two hotels, which have continued to trade, Herald Express relates. King Sturge say the Bute Court Hotel is a detached hotel built in the mid/late 1800s. Herald Express says the guide price is GBP850,000 for the freehold property, goodwill and trade inventory. Meanwhile, The Torbay Court Hotel is a detached coaching hotel with reception, bar/function room and restaurant for more than 100 covers, kitchens and stores. It is available for GBP775,000 to include goodwill and trade inventory, Herald Express discloses. Bute Court Hotel is located in Belgrave Road, Torquay. FLEMING DEVELOPMENTS: Administrators Sell Olympic Way Site ---------------------------------------------------------- Neil Callanan at Irish Examiner reports that administrators to Fleming Developments UK have secured planning permission for a 225-bedroom three-star hotel, 158 residential units and commercial units on land owned by the company on Olympic Way near Wembley stadium in north-west London. It also appears that the administrator, Baker Tilly, has sold the site, Irish Examiner reveals, citing a document that was filed to Companies House last month. The papers show that the mortgage from Anglo Irish Bank to Fleming Developments UK for the London site had been satisfied, Irish Examiner notes. The statement of affairs for the company showed a liability to Anglo Irish Bank of GBP33 million in relation to the Olympic Way site, Irish Examiner discloses. If the site had been sold in July last year, the estimated shortfall would have been more than GBP14.3 million as the land was believed to be worth less than GBP19 million, compared to a book value of GBP37.9 million, Irish Examiner states. Documents also show that the company had a debt of GBP1.72 million to AIB over houses at Allerton Bywater in Leeds and a floating charge over the remainder of its assets, according to Irish Examiner. Fleming Developments UK was also liable for EUR248 million owed by other Fleming Group companies under cross guarantees to AIB, Irish Examiner discloses. The Allerton Bywater houses are currently being prepared for sale but there is expected to be a shortfall of more than GBP1 million on the GBP1.7 million mortgage related to that site, Irish Examiner discloses. The administrators will continue their work on Fleming Developments UK until Sept. 25, Irish Examiner discloses. Creditors of Fleming Developments UK are owed GBP25.9 million by the group, Irish Examiner says. John Fleming, the company's owner, was declared bankrupt last November in Britain, meaning he can emerge from the process in as little as nine months, compared to a typical term of 12 years in Ireland, Irish Examiner recounts. Fleming Developments UK is a property developer. LOSELEY DAIRY: Goes Into Administration, Axes 83 Jobs ----------------------------------------------------- Natalie Crockett at South Wales Argus reports that Loseley Dairy Ice Cream Ltd has gone into administration, with the loss of 83 jobs. Workers at the company told the Argus that they received letters confirming the company had gone into administration and their contracts would end immediately. An unnamed spokeswoman for the firm confirmed the entire work force of 83 staff would be made redundant, according to the Argus. Portland Business and Financial Solutions was appointed as administrator. The employee claimed workers had received a pay cut in recent months, with the removal of their shift allowance on night shifts, and said he and his colleagues were angry they had not been consulted on the possibility of redundancies earlier, the Argus adds. Headquartered in Llantarnam Parkway, Loseley Dairy Ice Cream Ltd is an ice cream company. The factory, which opened in 2005, saw the consolidation of production for all the UK's Thayers, Loseley and Yorkshire Dales ice cream, following a flood at the Yorkshire Dales factory and the need for modernization of the Thayers plant in Cardiff. MCINERNEY HOLDINGS: Rothbury Housing Future Uncertain ----------------------------------------------------- Northumberland Gazette reports that concerns have been raised about the future of Whitton View, a Rothbury housing estate, after its developer, McInerney Homes, went into administration. As reported in the Troubled Company Reporter-Europe on April 6, 2011, Manchester Evening News said that administrators at KPMG have been appointed to seven companies in the UK arm of McInerney Holdings at the request of the company's directors. According to MEN, the seven companies in administration are McInerney Group, McInerney Homes, Alexander Developments (North East), Lancing Homes, Gold Homes (The Wave), William Hargreaves and Bowey Homes. Between them, the companies employ 161 staff, including 82 in Wigan, and 14 staff have already been made redundant at William Hargreaves, MEN discloses. Northumberland Gazette notes that Whitton View is one of a handful of developments which is to be continued, however, and KPMG announced that Miller Homes will be taking over the scheme. At the monthly Rothbury Parish Council meeting, fears were voiced over the future of works that still need to be completed on the site, the report discloses. Northumberland Gazette relates that a bond of GBP250,000 was left with the National House-Building Council (NHBC) in case any work on the site was not completed. Northumberland County Council is taking legal action against McInerney Homes and is in the process of drawing on the bond, but the developers lodged an appeal against it, the report adds. McInerney Holdings is a property developer based in Wigan. McInerney, which also has offices in Durham, Leeds, Wolverhampton and Northampton, is currently developing 32 sites and working on 13 social housing projects across the north and the Midlands. MEDITERRANEAN OIL: Survival Hinges on Financial Rescue Package -------------------------------------------------------------- Alistair Gray at The Financial Times reports that Mediterranean Oil & Gas has warned it will collapse into administration unless shareholders agree to a financial rescue package. The FT relates that on Thursday, the company disclosed plans for a boardroom shake-up as well as a capital reorganization, including a GBP20 million (US$33 million) fundraising through the issue of new shares. The FT notes that without such measures, Mediterranean cautioned, it would "not have adequate working capital to meet its obligations in the near term, forcing the company to cease trading". The company, which reported a pre-tax loss of EUR4.7 million (GBP4.1 million) in the six months to the end of June, has been hard hit by the fallout from BP's disaster in the Gulf of Mexico last year, which prompted restrictions on deepwater drilling off Italy, according to the FT. Mediterranean has a market capitalization of only GBP5.7 million, the FT discloses. It plans to issue new ordinary shares at 6p each and has also persuaded the holders of GBP9.8 million worth of convertible bonds to convert into shares, the FT states. Some of the funds will be used to wipe out debt with Bank of Scotland and the remainder will be available to develop its prospects in Italy, Tunisia, Malta and France, the FT notes. Mediterranean Oil & Gas Plc (MOG) is involved in production, development and exploration of oil and gas assets in Italy, Malta, France and Tunisia. The Company owns and operates Ombrina Mare oil and gas field. The Company has 20% interest in the Guendalina gas field, which has 2P gas reserves of 22 billion cubic feet of gas (100% basis). It has a portfolio of exploration projects, which include the Maltese acreage and the Monte Grosso prospect in the Basilicata region of Italy. The Company's subsidiaries include Malta Oil Pty Limited, Medoilgas Italia S.p.A and Medoilgas Civita Ltd. NORTH WEST: To Enter Into Company Voluntary Arrangement ------------------------------------------------------- Richard Williamson at Liverpool Daily Post reports that new North West National golf club is now the subject of a rescue plan after it racked up GBP400,000 in liabilities. According to Liverpool Daily Post, it is hoping to enter into a Company Voluntary Arrangement (CVA) to fend off creditors with a five-year payback scheme. The driving range and nine-hole course have opened, but the main course is presently shut, Liverpool Daily Post discloses. It is planned to re-open as part of the rescue package, Liverpool Daily Post notes. Glenn Turner resigned from the new North West National course, at Rainford, at the beginning of April, Liverpool Daily Post recounts. OPERA FINANCE: Fitch Affirms Rating on Class D Notes at 'BBsf' -------------------------------------------------------------- Fitch Ratings has affirmed Opera Finance (MEPC) plc's commercial mortgage-backed floating rate notes due 2014: -- GBP227.6m class A (XS0234415270): affirmed at 'AAsf'; Outlook revised to Stable from Negative -- GBP24.7m class B (XS0234415783): affirmed at 'Asf'; Outlook revised to Stable from Negative -- GBP25.4m class C (XS0234416245): affirmed at 'BBBsf'; Outlook revised to Stable from Negative -- GBP15.2m class D (XS0234498979): affirmed at 'BBsf'; Outlook revised to Stable from Negative The affirmations and Outlook revisions reflect the strong performance of the transaction over the past year. In particular, this is evidenced by the successful refinancing and release of two of the four underlying properties. The borrower released a refinancing plan in August 2010 that involved the staggered refinancing and release of the four properties ahead of the loan maturity in July 2012. To date, the Birchwood and Hillington Park properties, which Fitch considered to be the weakest in the pool, have been released (32% of market value at closing) for a combined GBP177 million prepayment (including a GBP5 million voluntary prepayment). The allocated loan amounts have been applied to the notes on a pro rata basis, while the release premium and voluntary prepayment have been applied sequentially. Despite the asset sales, the reported loan-to-value ratio (LTV), based on the borrower's internal valuation, has slightly increased over the past 12 months, to 75% (based on a March 2011 valuation) from 73% (based on a March 2010 valuation). Fitch's own estimate of the value is slightly lower, resulting in a Fitch LTV of 88%. Although it has not resulted in an improvement in leverage or credit enhancement, Fitch considers the two prepayments to be a strong positive signal of the borrower's ability to secure new debt and redeem the loan. In addition, the prepayments have decreased the outstanding balance to a more manageable size, which should further facilitate ongoing refinancing efforts. Even if these should fail, the current leverage implies that a sale would result in a full redemption of the notes. PLYMOUTH ARGYLE: Owes GBP17.5 Million to Creditors -------------------------------------------------- The full scale of Plymouth Argyle's cash crisis has been laid bare, with the club's debts spiralling to over GBP17.5 million, thisisnorthdevon.co.uk reports. Charities, small businesses, and public services are among those facing potentially catastrophic losses, thisisnorthdevon.co.uk discloses. The administration-hit club is searching for new owners after financial mismanagement drove it to the brink of ruin, thisisnorthdevon.co.uk relates. The club's former directors, who had planned to take the club to the Premier League and host World Cup matches in a new 46,000-seat stadium, left a trail of debts leading to more than 250 organizations and individuals, according to thisisnorthdevon.co.uk. Those creditors are now being asked to accept less than 1p for every pound owed as administrators plot Argyle's path to survival, thisisnorthdevon.co.uk notes. Among those hit by the club's collapse are Plymouth City Council, owed more than GBP300,000; St John's Ambulance, which stands to lose over GBP8,000; and Devon and Cornwall Police, owed in excess of GBP36,000, thisisnorthdevon.co.uk states. Company Voluntary Arrangement Administrators have contacted major creditors and say they are confident their Company Voluntary Arrangement will be approved at a meeting on May 6, thisisnorthdevon.co.uk discloses. The GBP4.93 million of debts secured against Home Park, and money owed to 'football creditors' must be settled in full, thisisnorthdevon.co.uk notes. But at least 75% of other creditors must accept the proposal of less than 1p per pound owed if the club is to survive, thisisnorthdevon.co.uk says. According to thisisnorthdevon.co.uk, the tax-man, the only obvious creditor likely to reject the CVA, is owed only GBP293,000. About Plymouth Argyle Plymouth Argyle Football Club, commonly known as Argyle, or by their nickname, The Pilgrims, is an English professional football club based in Central Park, Plymouth. It plays in Football League One, the third division of the English football league system. PRONUPTIA CHELMSFORD: Goes Into Liquidation ------------------------------------------- Chelmsford Weekly News reports that wedding shop Pronuptia Chelmsford has gone into liquidation. Chelmsford Weekly News says Pronuptia Chelmsford ceased trading in March with FRP Advisory being appointed joint liquidators in April to the shop, which was based in New Street. According to the report, the liquidators said they have been liaising with customers to arrange alternative supplies of dresses and menswear and to obtain refunds of deposits or monies paid where applicable. "Further to our instruction on March 24, and a review of the company's finances due to the extent of its liabilities brought about by the economic downturn, high rent and rates, as well as local competition, it was not feasible to attempt a rescue of the company and liquidation was unfortunately the only option," Chelmsford Weekly quotes Martin Weller, one of the joint liquidators, as saying. "Following our appointment as liquidators, we will now take steps to realise the assets of the company for the benefit of creditors." Pronuptia Chelmsford -- http://www.pronuptia.com/--is a stockists for various bridal manufacturers. RANK GROUP: S&P Affirms 'B+' Long-Term Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on U.K.-based gaming company The Rank Group PLC (Rank) to positive from stable. "We also affirmed our 'B+' long-term corporate credit rating on the company," S&P noted. "At the same time, we affirmed our 'B' issue rating on Rank's US$14.3 million unsecured non-amortizing notes. The recovery rating on the notes is '5', indicating our expectation of modest (10%-30%) recovery for creditors in the event of a payment default," S&P related. "The outlook revision reflects our view of Rank's solid 2010 operating performance in the context of a challenging U.K. consumer market. In the financial year ended Dec. 31, 2010 (financial 2010), the company's casino, bingo, and online operations generated positive free operating cash flow. As a consequence, credit metrics improved, although we still consider Rank's financial policy to be aggressive. Rank has also benefitted from successive receipts of significant value-added tax (VAT) refunds from the U.K. government. These refunds are currently subject to an appeal at the European Court of Justice (ECJ), with a ruling anticipated in the next 12 months. We believe that Rank's credit metrics could improve from their current levels if the ECJ rules in the company's favor," according to S&P. "In financial 2011, we anticipate revenue growth in the low single-digit range and we believe that Rank's reported EBITDA will remain broadly unchanged at about �95 million. We base this view on challenging macroeconomic conditions in the U.K. and Spain as customers' disposable incomes come under increasing pressure," S&P noted. S&P stated, "Even so, we think that Rank's credit metrics are likely to continue to improve, supported by sound operating performance and positive free cash flows. The positive outlook also reflects the possibility of an improvement in the company's financial risk profile to significant, should the prospective ECJ ruling go in Rank's favor." The rating on Rank could improve if the company were to demonstrate its ability and willingness to keep lease-adjusted leverage sustainably at or less than 4x. Ratings downside could occur if operating performance were to deteriorate significantly, if the contingent tax liabilities were to materialize, if the company were unable to refinance its bank facilities, or if adjusted debt to EBITDA were to move above 5.0x. SILENTNIGHT HOLDINGS: MP Urges Creditors to Approve CVA ------------------------------------------------------- BBC News reports that creditors of Silentnight Holdings Plc have been urged by a Lancashire MP to approve a new finance agreement that could save the company. The firm will meet creditors this week to ask for a Company Voluntary Agreement (CVA) to help it avoid administration, BBC relates. BBC says the CVA is needed after banks withdrew their loans and will allow the firm's pension debts to be transferred. According to BBC, Pendle MP Andrew Stephenson wants creditors to see the CVA benefits. Under the proposal, pension liabilities of GBP100 million dating back to acquisitions made in the 1980s and 1990s, would be transferred with the company pension scheme to a Pension Protection Fund, BBC discloses. Creditors will also be asked to accept reduced repayments to enable the company, which trades profitably, to continue manufacturing, BBC states. Silentnight Holdings Plc was founded in 1946 and supplies about 500,000 beds a year to retailers. It employs about 1,250 staff at sites across Barnoldswick, Cumbria, West Yorkshire and Ireland. SOUTHERN WATER: Fitch Assigns 'B+' Final Senior Secured Rating -------------------------------------------------------------- Fitch Ratings has assigned Greensands (UK) Limited a final senior secured rating of 'B+'. The company's Long-term Issuer Default Rating is 'B' with a Stable Outlook. The agency has also assigned a final 'B+'/'RR3' rating to Southern Water (Greensands) Financing plc's GBP250 million bond issue, which is guaranteed by Greensands, Greensands Holdings Limited, Greensands Junior Finance Limited, and Greensands Senior Finance Limited. SPORT MEDIA: David Sullivan Saves Sunday Sports From Collapse ------------------------------------------------------------- The Press Association reports that Sunday Sport will return to news-stands next month after former owner David Sullivan revealed that he and former staff had set up a private joint venture to save Sunday Sport publication and it will be relaunched on May 8. The paper faced falling into the annals of tabloid obscurity after its parent company Sport Media Group PLC (SMG) -- which also owned the sister title Daily Sport -- went into administration earlier this month, The Press Association relates. Daily Sport is still in the hands of administrators. As reported in the Troubled Company Reporter-Europe on April 7, 2011, SMG disclosed that Dermot Power and Patrick Lannagan, business restructuring partners at BDO LLP, were appointed joint administrators to Sport Media Group plc and two of its wholly owned subsidiaries, Sport Newspapers Limited and Moresport Limited, on April 4, 2011, by the Directors of the Companies. According to a separate TCREUR report on April 4, 2011, citing Reuters, SMG said it had ceased trading and would go into administration because it was unable to pay its debts. The Press Association recalls that the rescue deal will be the second time Mr. Sullivan has saved the paper from going bust after rescuing both the Daily Sport and Sunday Sport in 2009. Sunday Sport specializes in celebrity news and soft porn stories and images, was first published by porn magnate Mr. Sullivan in 1986. Sport Media Group is the publisher of the Daily Sport and Sunday Sport newspapers. VISIT LONDON: Move Into Administration Leads to Pensions Row ------------------------------------------------------------ Jo Adetunji at Guardian Professional reports that Visit London (VL) move to go into administration has sparked anger and confusion at City Hall amid accusations that the Greater London Authority (GLA) reneged on a deal that now threatens the pensions of 140 past and present staff. VL, Think London and Study London were due to merge into London & Partners (L&P), mayor Boris Johnson's new single promotional agency for London, which was due to take on Visit London's 39 staff, according to Guardian Professional. But in a last minute move, the report relates, the GLA, which funds the new body, refused to take on the GBP2.1 million deficit in VL's staff pensions, triggering its administration on April 1. Guardian Profession discloses that the decision has prompted an investigation by the pensions regulator and letters from the London Assembly's economic development, culture, sport and tourism committee, in a bid to find out what went wrong and why. VL's annual accounts for the year ending March 31, 2010, showed that the difference between the agency's pension liabilities and assets was GBP2.1 million, Guardian Professional notes. Guardian Professional discloses that the British Tourist Board trustees said VL's insolvency could have implications for 140 staff and the matter had been passed on to the pensions regulator to see whether those affected could qualify for Pension Protection Fund insurance. Under the fund, the report says, current staff would receive 90% of their pension up to a cap of GBP30,000 a year. Retired staff who transferred to the scheme from VL's predecessor, the London Tourist Board, would see future annual increases lowered, but that loss would be made up by the fund, the report relates. Guardian Professional discloses that although VL is a limited company, much of its funding comes via the mayor and the GLA. The mayor's office denied that the GLA had reneged on any deal and said it had never agreed to fund VL's pension liabilities, Guardian Professional notes. The mayor had created "one fit-for- purpose agency for London" and that L&P had taken its own commercial decision, it added. "We have secured the funds to maintain most of the jobs," Guardian Professional quotes Johnson's office as saying. "With the winding down of any agency there are obviously difficult legal and contractual issues, for which professionals have been hired to resolve," it added. WASTE2ENERGY HOLDINGS: Scottish Court Orders Liquidation of Unit ---------------------------------------------------------------- A Scottish court ordered that Waste 2 Energy Engineering Limited, one of the subsidiaries of Waste2Energy Holdings, Inc., should be wound up and that an interim liquidator will be appointed to Waste 2 Energy Engineering Limited. The order was issued after Waste 2 Energy Engineering apparently failed to pay its debts, citybizlist reported. About Waste2Energy Holdings Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company's balance sheet at June 30, 2010, showed US$3.4 million in total assets, US$11.7 million in total liabilities, and a stockholders' deficit of US$8.3 million. As reported in the Troubled Company Reporter on July 19, 2010, Marcum LLP, in New York, expressed substantial doubt the Company's ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred a significant loss from continuing operations of US$11.7 million and used cash of US$5.2 million for continuing operations which resulted in an accumulated deficit of US$30.4 million and a working capital deficiency of US$6.6 million as of March 31, 2010. Default On October 30, 2010, a total of US$87,500 of principal amount of the Company's 12% Senior Convertible Debentures became due. On November 2, 2010, US$40,000 of principal amount of the Debentures became due. The Company did not make the required payment on the maturity date or by the cure period provided by the Debentures and as result an Event of Default under the Debentures has occurred. As a result of the Event of Default, the outstanding principal amount of the Debentures plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of the acceleration will become at the election of the holder of the Debenture immediately due and payable in cash at the Mandatory Default Amount. YORKSHIRE BUILDING: Fitch Affirms BB+ Rating on Convertible Notes ----------------------------------------------------------------- Fitch Ratings has affirmed Yorkshire Building Society's (YBS) Long-term Issuer Default Rating (IDR) at 'A-' and placed Norwich & Peterborough Building Society's (N&P) Long-term IDR of 'BBB+' and Individual Rating of 'C' on Rating Watch Positive (RWP). The rating actions reflect the announcement by the two societies that they intend to merge. The affirmation of YBS's ratings and the Stable Outlook on its Long-term IDR reflects Fitch's view that a merger with N&P will strengthen its position as the second- largest building society in the UK. Fitch believes that despite a slight expected negative impact on performance in the near term, YBS should benefit from N&P's good quality customer assets and funding, while the merger will bring more geographical diversification to its branch network. The ratings also reflect the small impact the merger should have on YBS's capital position, which will remain solid. The RWP on N&P's ratings takes into account its potentially stronger credit position following the completion of the merger. N&P reported a pre-tax loss of GBP51.9 million in 2010 after a significant GBP57 million provision related to Keydata Investment Services Limited (Keydata) investment products sold by N&P's financial advisors. N&P has also been fined GBP1.4 million by the FSA for failing to give its customers suitable advice in relation to the sale of Keydata products. Since the provision covered all the outstanding Keydata investment balances, downside risk mainly relates to other investments, which will be subject to an independent review, in addition to some potential litigation related to Keydata. The outstanding amount of Keydata and other investment products is significant relative to N&P's capital, but would be more manageable for the combined entity. The merger is expected to be completed on November 1, 2011, subject to the approval of the eligible members of N&P and confirmation by the FSA. The rating actions are: -- Yorkshire Building Society: -- Long-term IDR: affirmed at 'A-' Stable Outlook -- Short-term IDR: affirmed at 'F2' -- Individual Rating: affirmed at 'B/C' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- Senior unsecured notes: affirmed at 'A-' -- Convertible notes: affirmed at 'BB+' -- Lower Tier 2 notes: affirmed at 'BBB' -- Permanent interest-bearing shares: affirmed at 'BBB-' Norwich & Peterborough Building Society: -- Long-term IDR: 'BBB+' placed on RWP -- Short-term IDR: affirmed at 'F2' -- Individual Rating: 'C' placed on RWP -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' =============== X X X X X X X X =============== * Corinne Ball to Lead Jones Day's Europe Restructuring Practice ---------------------------------------------------------------- The global law firm Jones Day has announced that Corinne Ball, one of the premiere bankruptcy and restructuring lawyers in the world, will lead the Firm's restructuring and distress M&A efforts in Europe. Perhaps best known as the lead lawyer who successfully drove U.S. automaker Chrysler through a historic 42 day bankruptcy, Ms. Ball has also led numerous high visibility corporate rescues throughout her career, including several on a global scale. She will spend substantial time in Europe over the next few years, but will continue to be based in New York. "Though there is a great deal of speculation regarding Europe's ongoing economic and political challenges, we are committed to the premise that Europe will meet its current challenges as it has met various hurdles in the past, and that it will emerge even stronger," said Stephen J. Brogan, Managing Partner of Jones Day. "But it is apparent that responding to the current problems will require a period of restructuring. The issues arising from sovereign debt and other bank debt issues mean that distressed investing in Europe is very likely to increase, and we have unique capacity to serve clients interested in purchasing the distressed assets, both companies and portfolios of loans, that will become available. Absent further amend-and-extend resolutions of the substantial debt anticipated to mature in 2012-2013, our clients, particularly our fund clients who will be heavily involved in the restructuring, will have a pronounced need for creative, high- quality legal work. Corinne's experience in high-stakes reorganizations is among the very best anywhere, and her leadership of this initiative will be of tremendous value to our clients." In addition to Ms. Ball's highly publicized work with Chrysler, two of her more notable and recent engagements -- and one of Jones Day's primary representations -- are especially relevant to the challenges being faced in Europe. She was the lead lawyer in Jones Day's successful representation of Dana Corporation achieving the first Company Voluntary Arrangement (CVA) in the UK premised upon a groundbreaking settlement with the UK Pension Regulator, facilitating the transfer of control to Centerbridge and other investors. Ms. Ball was also instrumental in obtaining a series of settlements to eliminate an enormous accumulated liability for health and life insurance benefits for retirees from its unionized and nonunion workforces, and to modify its collective bargaining agreements with active employees, allowing Dana to compete in the troubled auto industry upon emergence from bankruptcy. This "Global Settlement" resulted in the elimination of almost $1.5 billion in accumulated post-retirement benefit obligations, and the creation and funding of Voluntary Employee Benefit Association (VEBA) trusts. Several creditors filed objections to Dana's motion for court approval of the settlement and all but two of these objections were withdrawn as a result of successful negotiations with Dana's main creditor constituents. On July 26, 2007 Judge Burton Lifland approved the Global Settlement, after hearing testimony from Dana CEO Michael J. Burns. In his decision, Judge Lifland described the Global Settlement as "groundbreaking" and "paving the way" for Dana's reorganization. Ms. Ball also led Jones Day's team that advised Financial Guaranty Insurance Company, a leading national mono-line financial guaranty assurance company, in a transaction in which MBIA Insurance Corporation, a subsidiary of MBIA Inc. and another leading national mono-line financial guaranty assurance company, reinsured FGIC's risk under financial guaranty policies covering $166 billion in par of public finance obligations. In this transaction, Ms. Ball had extensive interactions with the UK's Financial Services Authority (FSA) in the restructuring of FGIC's UK operations with the FSA. In total, this reinsurance transaction was one of the largest and most notable reinsurance transactions in history and in many ways, unprecedented. The transaction was driven and overseen by the New York State Insurance Department. FGIC's insurer ratings had been significantly downgraded due to uncertainty regarding structured finance guarantees that FGIC had written, and FGIC's statutory capital levels were low. The NYID had made clear that FGIC would have been placed in rehabilitation, the insurance equivalent of receivership, if it did not raise new capital quickly. Negotiations continued through multiple rounds of bids over a four month period, with MBIA emerging as the winning bidder with regulatory hearings to approve and insulate the transaction. Ms. Ball has played a leading role in Jones Day's work for WL Ross & Co.'s European initiatives, including the acquisitions and pan- European financings relating to International Auto Components (IAC), which grew from the acquisitions throughout Europe of Collins & Aikman's assets; International Textile Group (ITG); and VTG, a large railcar company in Germany; in addition to the Firm's work for WL Ross on Virgin Money and Northern Rock. "High-speed turnarounds require special skill sets and we have several inherent advantages at Jones Day that will allow us to help clients on the road to rescue in Europe, not least among them being our unique structure providing legal services as one firm worldwide," said Ms. Ball. "We are well versed in managing reorganization engagements characteristic of the challenges Europe will be facing and have tremendous resources around the world in every relevant discipline to help facilitate their conclusion." Among her many distinctions, Ms. Ball was named "Dealmaker of the Year" in both 2009 and 2010 by The American Lawyer, and one of the "Most Influential Lawyers of the Decade" by the National Law Journal. She also received the Turnaround Management Association's "International Turnaround Company of the Year" Award in 2008 and is a director of the American College of Bankruptcy and the American Bankruptcy Institute. About Jones Day Since 1893, Jones Day -- http://www.jonesday.com/-- has grown, in response to its clients' needs, from a small, local practice to a truly global firm with more than 2,300 lawyers in 30 offices around the world. Jones Day is one of the most recognized and respected law firms in the world, and with more than 250 of the Fortune 500 among its clients. Jones Day takes pride in these recent achievements: "Number One for Client Service," 2002, 2004, and 2005; Top "Market Mover" in 2006, BTI Consulting Group, Inc.; "International Law Firm of the Year," Asian Legal Business, 2005 and 2006; and Second most cited, "Who Represents Corporate America," Corporate Counsel, 2006. Its areas of practice include Antitrust & Competition Law, Banking & Finance, Business Restructuring & Reorganization, Capital Markets, Corporate Criminal Investigations, Employee Benefits & Executive Compensation, Energy Delivery & Power, and Environmental, Health & Safety, Government Regulation, Health Care, Intellectual Property, International Litigation & Arbitration, Issues & Appeals, Labor & Employment, Mergers & Acquisitions, and Oil & Gas. ********* 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, Psyche A. Castillon, Julie Anne G. Lopez, 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 * * *