/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110505.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 Thursday, May 5, 2011, Vol. 12, No. 88 Headlines G E R M A N Y HECKLER & KOCH: Moody's Rates Senior Secured Notes at '(P)Caa1' I R E L A N D LYNCH FREIGHT: High Court Adjourns Winding-Up Petition L A T V I A PAREX BANKA: Repays Last Part of EUR500-Mil. Bailout Loan L U X E M B O U R G BEFESA ZINC: S&P Assigns 'B+' Long-term Corporate Credit Rating N E T H E R L A N D S LEHMAN BROTHERS: Netherlands Unit's Trustee Objects to Plan * PORTUGAL: Has EUR78 Billion Bailout Deal with EU & IMF R O M A N I A PLUS DEVELOPMENT: 'My Dream Residence' Sold for EUR16.7 Million R U S S I A * RUSSIA: 321 Banks Fail Central Bank's Stress Test T U R K E Y FINANSBANK AS: Moody's Assigns (P)Ba1 Senior Unsecured Debt Rating U N I T E D K I N G D O M AMDEGA: Vetro Vivo Offers Lifeline to Amdega Employees CRE8 PUBLISHING: In Liquidation; Owes More Than GBP2 Million EVANS PUBLISHING: Enters Into Company Voluntary Arrangement GOOD MORTGAGE: Goes Into Administration, Cuts 38 Workers KEYDATA INVESTMENT: SFO Halts Prosecution in Collapse Probe LEEDS UNITED: Reveals Ken Bates as New Owner LLOYDS BANKING: Puts Distressed Property Assets Up for Sale LLOYDS BANKING: Appoints Grainger to Manage Insolvent Properties ROYAL BANK: Vince Cable Balks at Efforts to Delay Collapse Report X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* ============= G E R M A N Y ============= HECKLER & KOCH: Moody's Rates Senior Secured Notes at '(P)Caa1' --------------------------------------------------------------- Moody's Investor Services has assigned a provisional (P)Caa1 rating to Heckler & Koch GmbH's proposed senior secured notes worth EUR290 million. All ratings, including the Caa1 corporate family rating (CFR), the Caa1 probability of default rating (PDR) and the bond rating of Heckler & Koch GmbH are under review with direction uncertain. RATINGS RATIONALE On May 2, 2011, Heckler & Koch GmbH announced its intention to issue new senior secured notes worth EUR290 million due 2018. The proceeds of this issue together with EUR14.8 million of cash on hand will be used to repay HK's existing EUR120 million senior notes, accrued interest and transaction fees, and to refinance EUR170 million worth of PIK notes issued outside the restricted group of the existing senior notes by HK's parent company Heckler & Koch Beteiligungs GmbH ("HKB"). Moody's notes positively that a successful placement would be a major step in resolving the near term refinancing risk stemming from the maturity of the existing EUR 120 million senior notes which fall due already in July 2011. However, given that EUR14.8 million of cash balances are intended to be used in the contemplated refinancing Moody's cautions that even in case of a successful placement of the EUR290 million notes, HK's liquidity position will remain weak as the transaction will consume almost all unencumbered cash. Moody's understands that at the end of March HK's cash position amounted to EUR33.6 million of which EUR16.9 million were pledged as collateral for advance payment or performance guarantees. Moreover, leverage ratios of HK would weaken as a result of the transaction given that the EUR170 million PIK notes issued by HKB will be refinanced with debt raised by HK. Pro forma the notes issue we calculate debt/EBITDA of 5.8x on a Moody's adjusted basis (based on 2010 EBITDA), but approaching 7x on a forward looking basis as 2010 was a strong year for HK, compared to actual debt/EBITDA of 2.9x as of December 2010. However, Moody's credit assessment of HK already considered the PIK notes given the significant influence on HK's financial policy by HKB such that, overall, Moody's would view a successful refinancing as a credit positive. The current rating review will likely continue through the repayment of the existing senior notes in July and will focus on the success of the proposed notes issue and the means for strengthening the company's liquidity profile. A failure in this respect would result in further downward rating pressure. Only in case that HK will be able (i) to secure the necessary cash for the bond repayment at maturity and (ii) to arrange for sufficient liquidity headroom to support the business through the cycle as well as (iii) clear visibility that debt/EBITDA will remain below 7x, Moody's would consider a positive rating action upon conclusion of the rating review. The provisional (P)Caa1 (LGD 4, 50%) rating is in line with Moody's Loss-Given-Default Methodology. The proposed EUR 290 million senior secured notes will be issued by Heckler & Koch GmbH which is the main operating company of Heckler & Koch group. The notes will be secured by a first ranking pledge over the shares of Heckler & Koch GmbH, a weaker type of collateral than tangible assets in Moody's view, and benefit from guarantees of its material subsidiaries. Assignments: Issuer: Heckler & Koch GmbH -- Senior Secured Regular Bond/Debenture, Assigned (P)Caa1 (LGD4, 50%) The principal methodologies used in this rating were Global Aerospace and Defense published in June 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavor to assign a definitive rating to the notes. A definitive rating may differ from a provisional rating. Headquartered in Oberndorf, Germany, HK is a leading, privately owned, defense contractor in the small arms sector. The company generated sales of EUR247 million in 2010. HK supplies the armed forces of NATO and NATO allies, European and US Special Forces, European police forces and US federal law enforcement agencies and other countries. HK designs, produces and distributes small arms, including rifles, side arms, fully automatic weapons and grenade launchers, as well as a variety of related products. It also provides parts and services to the military sector. ============= I R E L A N D ============= LYNCH FREIGHT: High Court Adjourns Winding-Up Petition ------------------------------------------------------ According to The Irish Times' Mary Carolan, High Court judge Mr. Justice Peter Kelly on Tuesday noted that an independent accountant's report into Lynch Freight (Kilmallock) Ltd. identified possible grounds for reckless trading arising from non- payment of liabilities owed to HM Revenue & Customs over a number of years. Mr. Justice Kelly was referring to a report by chartered accountant Peter Russell who, when asked to examine the liquidation of Lynch Freight, said it was "immediately obvious" the company was insolvent and had been for three years, The Irish Times relates. Lynch Freight and a sister company, Kilmallock Transport Ltd., have total liabilities of more than EUR1.4 million, The Irish Times discloses. Lynch Freight, The Irish Times says, owes about EUR466,000 to the Revenue while there is a disputed liability of EUR426,263 to the landlord of its offices at Park West, Dublin. According to The Irish Times, Mr. Justice Kelly on Tuesday said he would "reluctantly" grant a one week adjournment of a petition by the Revenue Commissioners to wind up Lynch Freight. The judge, as cited by The Irish Times, said he was reluctant to grant the adjournment, particularly given the information in the independent accountant's report which raised "a lot of questions" in relation to the trading. However, as Revenue was agreeing to an adjournment and no other creditor was objecting, the judge would grant one final adjournment, The Irish Times notes. The company had last month initiated proceedings seeking the protection of the court and appointment of an interim examiner but has withdrawn that application, The Irish Times relates. The independent accountant's report was prepared for that examinership application, The Irish Times states. Lynch Freight (Kilmallock) Ltd. operates a road haulage, logistics and transport business from Kilmallock, Co Limerick, and Park West with Kilmallock Transport Ltd. The companies employ 36 staff. =========== L A T V I A =========== PAREX BANKA: Repays Last Part of EUR500-Mil. Bailout Loan --------------------------------------------------------- Deutsche Presse-Agentur reports that Parex banka, whose near- collapse brought the Latvian state to the edge of bankruptcy in 2008, on Tuesday said it had repaid the last part of a EUR500 million (US$354 million) loan, a major step in its attempt to wind up its operations successfully. The EUR230 million payment was made "without attracting state budgetary funds" a statement from the bank, as cited by DPA, said, adding that its most vital obligations have now been "settled in full." DPA relates that Parex chairman Christopher Gwilliam, who was appointed last year when Parex was split into a resolution bank and a going concern rebranded "Citadele," said the repayment sent a "remarkably positive signal to foreign investors and rating agencies." The Latvian government's decision to save Parex from collapse in December 2008 led directly to the Baltic state asking for a EUR7.5 billion loan from international lenders and the introduction of harsh austerity measures, DPA recounts. Mr. Gwilliam is leading Parex's efforts to turn its remaining efforts into cash to repay the money the state paid to prop up the bank, DPA discloses. Meanwhile, Citadele bank is hoping to attract an international buyer, DPA notes. About Parex banka Founded in 1992, Parex banka -- http://www.parexgroup.com/-- currently employs some 1,900 people at branches all over Latvia and offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Currently, the Latvian Privatisation Agency is the majority shareholder of Parex banka, holding 73.4% of the Bank's shares, but 22.4% are controlled by the European Bank for Reconstruction and Development. Parex banka has signed up to the European Code of Conduct on housing loans. * * * Parex banka continues to carry an 'RD' long-term issuer default rating, 'CC' senior unsecured debt rating, and 'F' individual rating from Fitch. =================== L U X E M B O U R G =================== BEFESA ZINC: S&P Assigns 'B+' Long-term Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to European steel dust recycler Befesa Zinc S.A.U. The outlook is stable. "At the same time, we assigned a 'B+' issue rating to the EUR300 million senior secured notes issued by Zinc Capital S.A., a Luxembourg-registered orphan special purpose vehicle (SPV), and the proceeds loan made to Befesa Zinc. The recovery rating on the loan is '3', indicating our expectation of meaningful (50%-70%) recovery in the event of a payment default," S&P stated. The rating on Befesa Zinc reflects our assessment of the company's weak business risk profile and its aggressive financial risk profile. "The rating is constrained by our view of Befesa Zinc's aggressive capital structure (pro forma for the EUR300 million notes); planned increases in capital expenditures (capex); and ambitious strategy to expand into Turkey, which, in our view, carries inherent execution risks," S&P noted. According to S&P, "The rating is further constrained by what we believe to be Befesa Zinc's small-scale operations in a niche, fragmented, and competitive market of crude steel and stainless steel dust recycling, as well as by its limited diversity of operations, including the concentration on a single commodity and only four operating plants in the key profit-generating division of crude steel dust recycling. In addition, we also note the risk of future dividends to Befesa Zinc's direct parent, MRH Residuos Metalicos S.L.U. (MRH), an indirect subsidiary of Abengoa S.A. (B+/Stable/--), although we recognize that such payouts have not been made on a continuous basis in the past." "In our view, liquidity risks could notably arise in the future in the event that cash collateral or margin calls on Befesa Zinc's zinc-hedging arrangements were to be requested by banks--for example, due to tighter regulation of the over-the-counter commodity derivatives market," S&P related. "These risks are partly mitigated, in our opinion, by Befesa Zinc's leading market position in steel dust recycling; positive free operating cash flow (FOCF) generation; healthy EBITDA margins of above 35% on average in the past four years; and multiyear contracts with customers, which provide good revenue visibility. Hedging 60%-75% of its zinc output up to three years ahead significantly reduces Befesa Zinc's exposure to the commodity price cycle, in our opinion. In addition, we take a positive view of Befesa Zinc's activities being supported by environmental legislation in Europe, which has resulted in steel manufacturers having an economic incentive to recycle steel dust instead of putting it into hazardous waste-approved landfill sites," S&P continued. "In the next two to three years, we anticipate that Befesa Zinc's strategy will be growth oriented. We understand from management that capex associated with this growth will likely amount to about EUR120 million, and that the company intends to finance the capex from operating cash flow and existing cash balances in 2011. However, as spending increases in 2012, we anticipate negative FOCF and slightly higher leverage at Befesa Zinc--both of which, in moderation, we believe can be accommodated in the current rating. Positively, Befesa Zinc's Standard & Poor's-adjusted EBITDA increased by about 13% to EUR73 million in 2010 on a healthy margin of 35%, which we note is stable compared with 33% in 2009 and 39% in 2008," S&P related. "Based on adjusted debt, pro forma for the EUR300 million bond, we estimate funds from operations (FFO) to adjusted debt and adjusted debt to EBITDA of 22% and 3.6x at year-end 2010, which we consider commensurate with the 'B+' rating," noted S&P. "The stable outlook reflects our view that Befesa Zinc will continue to generate healthy operating cash flows in the near term, that it will maintain a minimum ratio of FFO to adjusted debt of about 12% and adjusted debt to EBITDA below 4.5x over the cycle, and that its liquidity will remain adequate for the rating," S&P said. According to S&P, "We could lower the rating if the company were to adopt a more aggressive financial policy, including higher capex or dividends, or engage in sizable acquisitions. We could also lower the rating if capex planned for the next two to three years were not adequately supported by operating cash flows, leading to weaker liquidity and leverage that is higher than we currently anticipate." "We do not foresee upside rating potential for Befesa Zinc at this stage, and consider the rating on the company to be constrained by that of its ultimate parent, Abengoa. Importantly, the rating on Befesa Zinc would be directly affected if we were to downgrade Abengoa," S&P added. ===================== N E T H E R L A N D S ===================== LEHMAN BROTHERS: Netherlands Unit's Trustee Objects to Plan ----------------------------------------------------------- Lehman Brothers Treasury Co. BV's bankruptcy trustees objected to the U.S. revised plan of reorganization filed by Lehman Brothers Holdings Inc., saying it should recognize an intercompany claim as senior debt, Jurjen van de Pol at Bloomberg News reported on April 29. "The Lehman Brothers Treasury trustees advised Lehman Brothers Holdings Inc. that they object to the January plan's failure to recognize the seniority of Lehman Brothers Treasury's intercompany claims," Rutger J. Schimmelpenninck and Frederic Verhoeven, lawyers at Amsterdam-based Houthoff Buruma, wrote in their eighth report on the Lehman bankruptcy, Bloomberg quoted. The trustees said they are discussing better treatment of the claim with Lehman Brothers Holdings and "certain key noteholder groups," Bloomberg added. The Lehman Brothers Treasury unit helped finance the business activities of affiliates of New York-based Lehman, the securities firm that filed for bankruptcy in 2008, by selling financial instruments including structured notes, the trustees said, Bloomberg related. The Lehman holding company owed US$33.2 billion to Lehman Brothers Treasury as of Sept. 12, 2008, they said. While the January plan "does not recognize the intercompany claim's status as senior debt," it "seems to have acknowledged the senior status of certain other claims, which was not the case in its previous plan," the lawyers said in an April 29 filing in Amsterdam district court, according to Bloomberg. The balance of the unit's estate accounts was EUR5.81 million (US$8.61 million) at the end of March, the trustees said, the news agency related. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) * PORTUGAL: Has EUR78 Billion Bailout Deal with EU & IMF -------------------------------------------------------- Arthur Beesley at The Irish Times reports that Portugal reached a EUR78 billion bailout deal with the EU and IMF on May 3, an agreement that marks the euro zone's third sovereign rescue after Ireland and Greece. The Irish Times relates that in a televised address from his official residence in Lisbon, caretaker prime minister Jose Socrates said the pact with the European Commission, the European Central and the IMF will protect the country's interests. According to The Irish Times, consultations with the country's center-right opposition leaders are still to follow, crucial given their lead in polls ahead of next month's general election. However, officials close to the talks have expressed confidence the opposition is willing in principle to adhere to the main terms of the rescue, The Irish Times notes. This was a key requirement of the EU/IMF team as it wanted to avoid any repeat of its experience in Ireland when the newly elected Government sought to renegotiate a deal agreed only months previously by its predecessor, The Irish Times says. Euro zone finance ministers plan to sign off on the deal at their monthly meeting next Monday week in Brussels, The Irish discloses. This would leave time for the European Financial Stability Facility bailout fund to raise money for Portugal to meet a EUR4.9 billion bond redemption in mid-June, a repayment it could not make without the benefit of external aid, The Irish Times states. Mr. Socrates, who for months resisted an external intervention in Portugal's affairs, applied for aid last month after parliament rejected his latest austerity plan, The Irish Times recounts. ============= R O M A N I A ============= PLUS DEVELOPMENT: 'My Dream Residence' Sold for EUR16.7 Million --------------------------------------------------------------- Cristi Moga at Ziarul Financiar reports that residential complex My Dream Residence in Pipera, northern Bucharest, developed by Turkish-held Plus Development, has been sold at an auction for EUR16.7 million, which amounts to an average price of around EUR130,000 per apartment. An investor whose name has so far remained unknown bid up to this price to acquire a stock of properties that includes the 129 apartments, with an overall surface of 22,297 square meters (173 square meters/apartment on average), 98 storage units, 210 parking spaces, retail spaces and a pool, ZF discloses. According to ZF, there were three bidders at the auction organized by court-appointed administrator BDO Business Restructuring, part of the international BDO chain, on Monday, and the starting price was EUR15.3 million. "The assets of Plus Development were sold for 16,740,000 euros, VAT included," ZF quotes BDO partner Geanina Oancea as saying. =========== R U S S I A =========== * RUSSIA: 321 Banks Fail Central Bank's Stress Test --------------------------------------------------- Courtney Weaver at The Financial Times reports that a stress test of the industry by its central bank showed that nearly a third of Russia's banks are ill-prepared for a repeat of the global financial crisis. Few domestic lenders went bankrupt during the crisis following nearly US$40 billion in state support, the FT discloses. However, more than 300 of Russia's 900-plus banks would see their capital requirement fall below the 10% minimum -- and therefore have their licenses revoked -- if they found themselves in a similar downturn marked by a rapid outflow of deposits and a paralysis in interbank lending, the FT notes. According to the FT, the central bank said that the 321 banks at risk controlled more than half of the assets in the sector. =========== T U R K E Y =========== FINANSBANK AS: Moody's Assigns (P)Ba1 Senior Unsecured Debt Rating ------------------------------------------------------------------ Moody's Investors Service has assigned a first-time provisional (P)Ba1 foreign-currency senior unsecured debt rating to Finansbank A.S. (Finansbank). The outlook on the rating is positive. RATINGS RATIONALE Moody's foreign currency debt ratings are subject to the foreign currency bond ceiling. As a result, even though Finansbank's global local currency (GLC) deposit rating of Baa2 is higher than the foreign currency bond ceiling for Turkey, Finansbank's foreign currency senior unsecured debt rating is constrained by and thus equal to this ceiling. The debt issuance is being offered under Rule 144A, Regulation S. The terms and conditions of the notes include (among others) a negative pledge and a cross-default clause. The notes will be unconditional, unsubordinated and unsecured obligations and will rank pari passu with all Finansbank's other senior unsecured obligations. The rating of the notes is in line with Finansbank's senior unsecured foreign-currency debt rating. Any subsequent foreign-currency senior unsecured bonds issued by Finansbank would also be rated Ba1. The rating of the notes is provisional and represents Moody's preliminary opinion only. Upon a conclusive review of the documentation, Moody's will endeavour to assign a definitive rating to the notes. A definitive rating may differ from a provisional rating. A rating is not a recommendation to purchase, sell or invest in any securities. PRINCIPAL METHODOLOGIES The principal methodologies used in this rating 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. Moody's previous rating action on Finansbank was implemented on October 7, 2010, when Moody's changed the outlook on the foreign- currency deposit rating to positive from stable. Finansbank is headquartered in Istanbul, Turkey, and at the end of December 2010 had total assets of US$25.6 billion. =========================== U N I T E D K I N G D O M =========================== AMDEGA: Vetro Vivo Offers Lifeline to Amdega Employees ------------------------------------------------------ Andy Richardson at The Northern Echo reports that Vetro Vivo, a north-east conservatory firm threw a lifeline to former workers as Amdega plunged into administration. Mike Farrell, an ex-Amdega salesman who now runs his own conservatory business, Vetro Vivo, based in Stockton, has been in talks with a handful of Amdega staff about them joining his operation in the upcoming months, according to The Northern Echo. However, the immediate prospects for the majority of the 197 Darlington-based Amdega staff and about 120 sales and sub- contractors across the country are grim, with some expressing fears they will lose their homes unless they can find work in the very near future, The Northern Echo notes. As reported in the Troubled Company Europe on April 29, 2011, The Journal said Amdega has gone into administration with the potential loss of 190 jobs. The administration of company, which has been in business for over 130 years, was disclosed by its owners London-based private equity firm, according to The Journal. A spokesman for Somerset-based David Salisbury Conservatories confirmed that it is bidding to buy Amdega's unfinished orders, as well as machinery and the firm's trading name, but that it had no interest in re-opening the factory, The Northern Echo says. Private equity specialist Endless walked away from Amdega nine months after buying the firm, The Northern Echo relates. The taxpayer and administrators KPMG have been left to pick up the piece, which includes about GBP3.3 million owed to suppliers and sub-contractors, as well as staff salaries and redundancy payments, the report notes. The Northern Echo understands that a buyer for Amdega was sought last month when Endless decided to pull-out after investing about GBP11 million in the company. Anglian Home Improvements is believed to be among the potential buyers that showed interest, according to the report, but the scores of Amdega customers who were demanding repairs under warranty had deterred interested parties from making an offer. Endless claim it made the decision to enter administration on Tuesday April 26, only 24 hours before staff were informed of their fate, the report notes. The Northern Echo adds that sales staff claim they were still collecting deposits from customers as late as the evening of April 26 and that customers who have failed to sign up for the optional payment protection cover could find themselves up to GBP10,000 out of pocket. Amdega is a conservatory and greenhouse company. It is based on the town's Faverdale Industrial Estate. CRE8 PUBLISHING: In Liquidation; Owes More Than GBP2 Million ------------------------------------------------------------ The Drum reports that football and rugby clubs are among the unsecured creditors owed more than GBP2 million as Cre8 Publishing is put into liquidation. The Drum, citing liquidation documents, discloses that Cre8 Publishing owes Rangers almost GBP500,000, Celtic GBP400,000, Arsenal GBP270,000, West Ham GBP103,000 and Spurs GBP42,000. The Drum recalls that Celtic fans were urged in November last year to apply to Cre8 for subscription refunds when the club cancelled its contract with the publisher due to allegedly unpaid royalties. Rangers likewise cancelled its contract telling fans to "cancel any direct debit payment with immediate effect," The Drum says. More recently, The Drum reports, Arsenal filed legal action over a claimed GBP270,000 of unpaid royalties. According to The Drum, the collapse comes just three years after the group's predecessor company Cre8 UK collapsed owing creditors, including Birmingham City and Watford, more than GBP2.1 million. Cre8 Publishing Ltd is one of the UK's biggest printers of matchday programs. EVANS PUBLISHING: Enters Into Company Voluntary Arrangement ----------------------------------------------------------- Lisa Campbell at The Bookseller reports that Evans Publishing has filed a Company Voluntary Arrangement (CVA) after saying the school and library market has faced an "extremely tough 18 months." According to The Bookseller, Evans Publishing failed to pay its creditors on time after recently experiencing "particularly severe cash-flow difficulties." The company told The Bookseller it had now entered into a one-year CVA, which would allow it to "return to profitability as well as maximizing creditors' interests." In December 2009, the company reported a turnover of GBP3.5 million and a negative balance sheet of GBP450,000, The Bookseller discloses. Since then, turnover has dropped to GBP2.7 million, The Bookseller notes. The CVA means that from March 22, creditors are paid 31p in the pound, The Bookseller states. Keith Steven, managing director of the KSA Group which specialises in CVAs, said the CVA will give Evans Publishing more time to pay and reduce its debts, The Bookseller relates. "The creditors for a publishing company are likely to be its printers, perhaps lawyers and accountants and in 99%, of the cases that we see, the Inland Revenue [is] a significant creditor," The Bookseller quotes Mr. Steven as saying. Evans Publishing trades under the name Evans Brothers Limited and is owned by Imperial Securities. The company publishes resources in all areas of the national curriculum. GOOD MORTGAGE: Goes Into Administration, Cuts 38 Workers -------------------------------------------------------- Mortgage Strategy reports that the Good Mortgage Company has gone into administration, cutting 38 jobs in the process after its main shareholder, Octopus, pulled its funding last month. The company was making a last ditch attempt to secure a buyer but after receiving no offers, it went into the hands of liquidator James Cowper LLP on April 21, according to Mortgage Strategy. Mortgage Strategy notes that in a prospectus sent to potential investors, the firm said pipeline revenues were estimated to exceed GBP150,000. In the past two years, the firm saw 77,000 enquiries, completed 450 mortgages, and generated GBP400,000 from life insurance sales, the report adds. Money Workout Limited, trading as The Good Mortgage Company, is headquartered in Southampton. KEYDATA INVESTMENT: SFO Halts Prosecution in Collapse Probe ----------------------------------------------------------- Brooke Masters at The Financial Times reports that the Serious Fraud Office confirmed that no one will face criminal charges in connection with the collapse of Keydata, one of the largest failures of a retail investment firm in recent years. According to the FT, the SFO said there was "insufficient evidence to secure a prosecution." The agency is now focusing on tracing the missing assets, the FT notes. Keydata and its founder, Stewart Ford, are still being investigated by the Financial Services Authority, which has the power to fine individuals and firms and ban them from working in the sector, the FT discloses. The regulator, the FT says, described its probe as being at an "advanced stage." The FSA initially shut down Keydata in June 2009 amid concerns that it was selling Isa products that were not in compliance with tax laws, the FT recounts. The FSA said PwC, the group's administrators, then discovered that GBP103 million of investors' money in bonds issued by SLS, a Luxembourg company, had been "misappropriated." SLS was closely associated with David Elias, a fugitive from UK justice who reportedly died shortly before Keydata failed, according to the FT. Mr. Ford has denied wrongdoing and argued that the FSA's "catastrophic intervention" caused the firm's collapse, the FT notes. Keydata Investment Services Ltd. designs, distributes and administers structured investment products. Keydata operates from three locations, London, Glasgow, and Reading, and administers its own products as well as portfolios for third parties. LEEDS UNITED: Reveals Ken Bates as New Owner -------------------------------------------- guardian.co.uk reports that Leeds United Association Football Club Ltd. has revealed that Ken Bates is the outright owner of the club. As reported in the Troubled Company Europe in 2007, Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were appointed May 4, 2007, administrators of Leeds United at the request of the Club's directors. Shortly after their appointment, the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor. guardian.co.uk notes that the club said in a statement: "There has been much speculation in the media as to the ownership structure of Leeds United and its compliance with the relevant regulations of The Football League and The Football Association. The speculation has been further fuelled by the coverage of the Football Governance enquiry and the political obsession with the ownership of Leeds United . . . to address this issue and in the hope that this brings an end to the speculation, the chairman, Ken Bates, has completed the purchase of FSF Limited for an undisclosed sum. FSF Limited is now owned by Outro Limited which is wholly owned by Ken Bates. This change in ownership structure makes Ken Bates the controlling shareholder of Leeds United and delivers the transparency sought." Headquartered in Leeds, England, Leeds United Association Football Club Ltd. -- http://www.leedsunited.com/-- is an English professional football club. LLOYDS BANKING: Puts Distressed Property Assets Up for Sale ----------------------------------------------------------- Daniel Thomas at The Financial Times reports that the first portfolio of distressed property assets collected from about 38 different receiverships has been put on the market by Lloyds Banking Group as it explores new ways of increasing disposals from its "bad" real estate book. Lloyds, which has close to GBP30 billion (US$50 billion) of troubled real estate loans, was behind about GBP4 billion of real estate sales last year either through forcing an administration or encouraging an investor exit, the FT discloses. Many of those sales were of large single ownership portfolios, which left the bank with the problem of how to work through its collection of smaller property loans, the FT notes. According to the FT, the portfolio, codenamed Flagstaff, comprises a diverse range of UK properties across various sectors, including office, leisure, retail and industrial. There are 38 properties in total to be sold that were owned by a number of different investors, with a guide price of more than GBP60 million, the FT says. This reflects a net initial yield of more than 9%, the FT states. This is the first time such a large portfolio has been pieced together from different ownerships in the hands of receivers, the FT notes. Should it prove successful, Lloyds is expected to pursue larger sales of this kind, allowing it to sweep up a large number of bad debt exposures into a single process, the FT says. Jones Lang LaSalle, the property consultancy, has been instructed to market the mixed portfolio of commercial properties, the FT discloses. The process was made easier by the fact that Jones Lang LaSalle was also appointed as receiver in each case, the FT states. About Lloyds Banking Group PLC Lloyds Banking Group PLC, formerly Lloyds TSB Group plc, (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United Kingdom-based financial services group providing a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. The Company operates in three divisions: UK Retail Banking, Insurance and Investments, and Wholesale and International Banking. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Company also operates an international banking business with a global footprint in 40 countries. Services are offered through a number of brands, including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows, Clerical Medical and Cheltenham & Gloucester. On January 16, 2009, Lloyds Banking Group plc acquired HBOS plc. LLOYDS BANKING: Appoints Grainger to Manage Insolvent Properties ---------------------------------------------------------------- Tim Barwell at Bloomberg News reports that Lloyds Banking Group Plc appointed Grainger Plc to manage residential properties that are in the insolvency process after borrowers defaulted on loans. According to Bloomberg, Lloyds said in a statement on Wednesday that Grainger, the U.K.'s largest publicly traded residential landlord, will receive fees based on rent and disposals from the property portfolio. Bloomberg relates that the statement said Grainger manages about 20,000 properties in the U.K. About Lloyds Banking Group PLC Lloyds Banking Group PLC, formerly Lloyds TSB Group plc, (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United Kingdom-based financial services group providing a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. The Company operates in three divisions: UK Retail Banking, Insurance and Investments, and Wholesale and International Banking. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Company also operates an international banking business with a global footprint in 40 countries. Services are offered through a number of brands, including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows, Clerical Medical and Cheltenham & Gloucester. On January 16, 2009, Lloyds Banking Group plc acquired HBOS plc. ROYAL BANK: Vince Cable Balks at Efforts to Delay Collapse Report ----------------------------------------------------------------- Elizabeth Rigby at The Financial Times reports that Business Secretary Vince Cable has attacked Royal Bank of Scotland for putting up "obstacles" to prevent the publication of a long- awaited report into the collapse of the bank, amid concern that legal wrangling could delay its release indefinitely. According to the FT, Mr. Cable expressed concern on Tuesday that the report into RBS by the Financial Services Authority was being held up by legal disputes as he confirmed that the government was working with the City watchdog to find a way through the barriers to publication. "There is a clear public interest in a comprehensive report being published and delivered to government as soon as possible," the FT quotes Mr. Cable as saying. "My department is speaking to the FSA about the delay and shares their frustration about the obstacles being put in their way to prevent publication." Mr. Cable's intervention comes after it emerged that the report, originally expected to be published by the end of March, had been repeatedly delayed by legal clashes between the FSA, politicians and RBS lawyers over its tone and content, the FT relates. Both Mr. Cable and the Treasury committee are keen to ensure the published version does not pull punches over what went wrong at the bank, which is still 83% owned by the taxpayer, the FT notes. However, lawyers acting for RBS are concerned that some passages may expose the group to further litigation, particularly in the US, according to the FT. The legal team representing Johnny Cameron, the former head of RBS's investment banking arm, has also raised objections, the FT says, according to people familiar with the process. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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 * * *